Strategic Approaches to Building Workforce Capability in Australia

Key Takeaways from the AFR Workforce Summit

As I reflect on the recent AFR Workforce Summit, one theme emerges with striking clarity: Australia stands at a critical juncture in addressing its workforce challenges. The conversations that unfolded among government representatives, business leaders, and workforce experts revealed not just the complexity of our skills shortages, but also the richness of potential solutions available to us. What follows is my synthesis of these discussions, offered as a framework for leaders grappling with workforce capability in an increasingly competitive global landscape.

The Economic Foundation

Minister Murray Watt opened with a perspective that set an optimistic tone for the discussions that followed. The economic foundation upon which we’re building is stronger than many realise. With over one million new jobs created during the current government’s term and the lowest average unemployment rate in fifty years, there’s a fundamental stability that allows for strategic rather than merely reactive approaches to skills development.

What struck me particularly was Minister Watt’s emphasis on the private sector’s role in this growth—four out of five new jobs have emerged there, suggesting that government and business are finding effective ways to partner. The reduction in industrial disputes further indicates a collaborative environment taking shape. This matters tremendously because addressing skills shortages requires precisely this kind of cross-sector cooperation.

Reimagining Productivity

The summit challenged conventional thinking about productivity in ways that should resonate with forward-thinking leaders. Minister Watt’s characterisation of wage suppression as “dressing up ideology as economic fact” signalled a shift toward more nuanced approaches to enhancing productivity.

Two recent policy initiatives exemplify this shift. The elimination of non-compete clauses at most employment levels promises to increase workforce mobility, allowing talent to flow more naturally to where it creates the most value. Similarly, the national approach to occupational recognition for electricity workers offers a template that could transform how we recognise and deploy skills across industries.

What emerges from these discussions is a vision of productivity rooted not in constraining workers but in releasing their potential through different policy frameworks and investments in capability. This vision represents a significant departure from approaches that have dominated Australian business thinking in recent decades.

The Education Evolution

“Seventy percent of future jobs will require tertiary education,” noted Jobs and Skills Australia Commissioner, Professor Barney Glover, a statistic that underscores the urgency of reimagining our educational approaches. The imbalance between vocational education and higher education emerged repeatedly in discussions, suggesting our current system isn’t optimally aligned with future workforce needs.

What became increasingly clear throughout the summit is that the traditional separation between education and work is dissolving. Where once a credential might serve for decades, speakers noted that the “skill life” of workers has compressed dramatically from about 15 years to approximately 3 years. This acceleration demands new models of continuous learning that blur the boundaries between formal education and workplace development.

Yet even as this need becomes more apparent, several speakers observed a concerning trend: organisations have reduced in-house work-related training, with compliance requirements consuming an ever-larger share of learning and development resources. This divergence between need and reality represents one of the most significant challenges identified at the summit.

Diversity as Strategic Imperative

The business case for diversity has evolved beyond simple representation metrics, as exemplified by several organisational stories shared during the summit. BHP’s journey to 39% female representation across the organisation—with many leadership levels reaching 50:50 gender parity—demonstrates what’s possible with intentional approaches. Their “Future Academy” shows how strategic talent development can transform organisational demographics.

Kathryn van der Merwe, Group Executive, People, Culture & Communications at Telstra reported their current count of 44% female executives, emphasising that creating truly inclusive workplaces requires pulling multiple levers simultaneously. The “40/40/20 approach” she mentioned offers a flexible framework that acknowledges the complexity of diversity work while maintaining clear targets.

What these stories collectively suggest is that diversity isn’t merely about social equity (though that certainly matters)—it’s about accessing previously untapped talent pools to address skills shortages. Organisations that excel at inclusion gain access to capabilities their competitors do not reach.

The Global Talent Opportunity

CEO Melinda Cilento from the Committee for Economic Development of Australia raised concerns about the “absence of skilled migration” in many workforce discussions. This resonated deeply for me. Her observation that one in four skilled migrants in Australia work below their skill level despite being recruited specifically for their expertise points to a significant opportunity cost in our current approaches.

The bias for local knowledge among Australian employers that Cilento identified suggests cultural rather than structural barriers to leveraging global talent. When she mentioned the rapidly growing populations in countries like Pakistan, Congo, and Nigeria, I was struck by the mismatch between where human capital is developing globally and where our recruitment efforts typically focus.

This reluctance to recognise international experience represents a particularly self-limiting aspect of Australia’s approach to skills shortages. In a global competition for talent, our geographic isolation already presents challenges—adding unnecessary biases against international experience only compounds the difficulty.

Generational Insights

The dedicated panel on Generation Z offered nuanced perspectives that move beyond simplistic characterisations of younger workers. Jessica Campbell from Google noted that the traditional command-and-control approach of “Jump = how high” no longer resonates with this generation. Instead, their desire to understand the “why” behind work requirements reflects a deeper need for purpose and meaning—”that is where the magic happens.”

Yet this emphasis on purpose coexists with very practical concerns. The panel noted that Gen Z values competitive compensation, flexibility in work arrangements, having a voice in decisions, collaboration opportunities, and clear development pathways. Kathleen McCudden from Seek wisely observed that while generational differences exist, many workplace preferences span generations, suggesting that improvements made for younger workers often benefit all employees.

Bridget Louden-Harris of Expert 360 reminded listeners that intergenerational understanding flows both ways. While organisations must adapt to new expectations, Gen Z also needs to understand that “career is a staircase, not an elevator” and that work ethic and responsiveness remain highly valued across generations. This mutual adaptation, rather than one-sided accommodation, emerged as a theme worth considering.

The Flexibility Revolution

Few topics generated as much discussion as flexible work arrangements, reflecting their central importance in contemporary workforce strategies. Minister Watt observed that flexibility in office-based settings could substantially increase workforce participation, tapping into talent pools that might otherwise remain inaccessible.

Karen Lonergan, Chief People Officer at PwC Australia made a crucial distinction between “hybrid” work models (which involve behavioural adaptations) and “flexibility” (which requires structural changes). This distinction helps explain why some organisations have struggled to implement effective flexible arrangements—they’ve changed locations without adapting underlying work processes and expectations.

Perhaps most revealing was Sarah McCann-Bartlett of the Australian HR Institute’s observation that employees will trade up to 6% of their salary for hybrid work options. This quantification of flexibility’s value should prompt leaders to reconsider their “5 days-a-week return-to-office” mandates, especially when facing skills shortages. The leaders best positioned to navigate these new work arrangements, several speakers noted, are those comfortable with ambiguity and who demonstrate genuine curiosity about emerging possibilities.

The Changing Industrial Landscape

The industrial relations environment described at the summit differs dramatically from that of even a few years ago. Natalie Gaspar from Freehills characterised it as a “complex bargaining environment” where employees and unions have increased bargaining power. This shift requires adjustments from employers accustomed to different dynamics.

Rebecca Donaldson’s experience with Ramsay’s 16 agreements covering 36,000 staff highlighted the growing preference for negotiated solutions, noting that “neither party wants to race to the Commission.” This preference for direct resolution rather than regulatory intervention suggests opportunities for innovative approaches to workplace relations.

Innes Willox of the Australian Industry Group described workplaces as “almost unrecognisable” due to COVID’s impact on work practices and employee expectations. The dramatic increase in psychosocial health considerations represents one of the most profound shifts, requiring entirely new approaches to workforce management and wellbeing.

Technology as Augmentation

While artificial intelligence featured less prominently than might have been expected, the summit did acknowledge its growing importance. Current investment in AI is substantial and expected to soon reach $200,000 per full-time equivalent . However, the emphasis fell not on replacement but on augmentation—technology enhancing rather than displacing human capabilities.

This augmentation frame offers a constructive way to think about technological change in workforce planning. Rather than asking which jobs might disappear, leaders might better consider how existing roles will evolve and what new capabilities their organisations will need to develop as technology transforms work processes.

Leadership for the New Landscape

Throughout the summit, a picture emerged of the leadership qualities needed to navigate today’s workforce challenges. Comfort with ambiguity, curiosity about diverse perspectives, willingness to devolve decision-making, commitment to building trust, and intentionality in approach (described by one speaker as “the word of the moment”) all featured prominently.

What struck me about this list is how dramatically it differs from the command-and-control leadership models evident in Australian business for decades. This has been a long time coming and encouraging to see. The workforce challenges we face don’t merely require different strategies—they demand much more thoughtful and informed leadership approaches.

Moving Forward: Integrated Strategies

As I reflect on the rich discussions at the summit, it becomes clear that addressing Australia’s skills shortages requires integrated strategies that operate across multiple dimensions simultaneously. Organisations that succeed will likely combine several approaches:

They’ll develop talent strategies that simultaneously reskill existing workers, attract diverse new talent, and leverage global expertise. They’ll create intentional inclusion programs with clear targets and accountability measures. Their learning models will acknowledge the shortened “shelf life” of skills and embed continuous development of underlying capabilities into everyday work. Their collaboration practices will work seamlessly across in-person and virtual environments.

The leadership approaches that drive these strategies will emphasise trust, purpose, and decision-making autonomy rather than control and compliance. Flexible work arrangements will connect clearly to organisational goals rather than existing as standalone policies. And technological augmentation will enhance rather than replace human skills development.

A Call to Intentional Action

Perhaps the most significant takeaway from the summit was the repeated emphasis on intentionality. Australia’s skills challenges won’t resolve themselves through market forces alone or through isolated initiatives. They require deliberate, sustained, and coordinated efforts across government policy, educational institutions, and organisational practices.

The good news is that we’re building from a position of economic strength, with numerous examples of successful approaches already emerging across sectors. Organisations that learn from these examples while adapting them to their specific contexts will be best positioned to overcome skills challenges and build sustainable workforce capabilities.

The path forward isn’t about finding a single solution but about orchestrating multiple approaches into coherent strategies—strategies that recognise the complexity of our current moment while maintaining clarity about the capabilities Australia needs to thrive in the decades ahead.

Dr. Marianne Broadbent is a leading expert in executive leadership and organisational strategy. This article synthesises insights from the AFR Workforce Summit and is intended to support leaders in developing strategic approaches to workforce capability.

Making the invisible, visible: Dr Theresa Ruig brings unique perspective to the boardroom

Legally blind, Dr Theresa Ruig encourages board accessibility to leverage unique insights

Dr. Theresa Ruig, recipient of the Jo Fisher Future Board Scholarship, is bringing her lived experience and professional expertise to reshape board accessibility and leadership.

Dr Theresa Ruig’s experience of being totally blind presents an interesting conundrum. On one hand, her disability is highly visible to people and sometimes means she is seen only one-dimensionally. On the other, the disability can make her equally invisible, contingent on people’s tendencies to make assumptions about the capability and expertise of people living with disability.

For Dr Ruig, the Jo Fisher Future Board Scholarship at Future Leadership arrived at a pivotal moment in her career journey. At a time of professional transition, when she was reflecting on her next steps and exploring various contract roles and professional development opportunities, the scholarship presented itself as an ideal pathway to meaningful impact.

“I wasn’t actively looking for it, but it came across my desk, so to speak,” Ruig explains. “I was at a time of career transition, asking where I wanted to go next. I knew that I was ready to bring my heightened experience of problem solving, navigating complexity, and thinking from outside the system to the fore. People really do underestimate the extraordinary capacity of people living with diverse ability and the value our perspectives can bring to the disrupted world of work.”

Beyond Lived Experience

What makes Ruig’s perspective particularly valuable in the boardroom is her ability to draw on personal, professional and societal insights. As someone who is blind, she previously served on boards within the blindness sector, but her aspirations reach much further.

“I’d had previous board roles, but not for many years, and that was specifically in the blindness sector,” she shares. “As someone who’s blind, I was able to utilise my lived experience, but to me, I thought, no I have so much more to give, I want to go beyond that.”

Ruig’s vision for her board service transcends representation. She sees an opportunity to bring unique perspectives to organisations and sectors where disability awareness might be limited, and accessibility an underutilised benefit.

“I want to be able to take my lived experience, my understanding of disability, and the unique perspectives that gives me to expose that to other boards and other sectors where perhaps that’s not an area they’d necessarily been exposed to,” she explains.

For Ruig, board service is not just about representation—it’s about an evolution in how leadership potential is perceived.

“I’m not looking to fill a seat or tick a box, I’m looking to shift mindsets. I want to challenge how we think about leadership, capability, and contribution. Disability, in my view, is not a deficit but a different lens through which to lead. My presence on a board is not the end goal, it’s a signal that we are evolving towards governance that truly reflects the diversity of our society.”

She is a passionate advocate for encouraging greater accessibility and inclusion and believes they should not be seen as compliance obligations, but as strategic opportunities for innovation and excellence.

Commenting on the DEI backlash we are currently seeing come from the United States political rhetoric, Ruig calmly insists that DEI efforts must be intrinsically connected to business value, not simply moral value. Accessibility, after all, applies to everyone. It’s about creating environments where all voices can be heard, valued, and acted upon.

“True inclusion isn’t just about inviting people to the table—it’s about redesigning the table entirely. Sometimes, the most valuable contributions come from those who have had to navigate systems not built for them in the first place.”

Professional Development Journey

The path to this scholarship wasn’t direct. Ruig had taken time away from the traditional workforce to determine her next career move, during which she engaged in contract work while completing a social impact fellowship as part of her professional development.

This combination of practical experience and formal training positioned her perfectly for the Jo Fisher Future Board Scholarship, which aims to develop diverse leadership talent for board positions.

In reviewing the many candidates for the scholarship, Founding Director Jo Fisher commented, “I think Theresa is an outstanding candidate. She will be wonderful to work with, and will benefit immensely from the coaching and AICD course on her journey to impact.”

Looking Ahead

As Ruig prepares to apply her unique combination of lived experience and professional expertise in new board environments, she represents exactly what the Jo Fisher Future Board Scholarship seeks to promote: leadership that brings fresh perspectives and inclusive thinking to governance and strategic decision-making.

Through this opportunity, Ruig hopes to demonstrate how diverse viewpoints strengthen boards and ultimately lead to more thoughtful, inclusive, and effective organisations.

The Jo Fisher Future Board Scholarship at Future Leadership identifies and supports emerging leaders from diverse backgrounds, preparing them for impactful board service across various sectors.

Australia’s Skills Gap: Why Leadership, Not Just Skills, Is the Answer

By Michelle Loader, Managing Director, Future Leadership

Australia stands at a critical juncture. While there have been ongoing discussions about the skills gaps across our economy, we need to take this opportunity to rethink our approach. The evidence points to a need for action: 36% of occupations assessed are in national shortage according to Jobs and Skills Australia. This highlights a need for innovative strategies to better prepare our workforce for the future.

Rethinking the Skills Paradigm

The language we use – “skills gaps” and “skills shortages” – may be limiting our ability to address the challenge. I wonder if we thought beyond “jobs and skills” to “work and capabilities” if this would represent a necessary shift in how we conceptualise human potential in the workforce?

As organisations race to integrate AI into their core business strategies – with PwC reporting 56% of Australian CEOs planning to do so within three years – we continue to frame the conversation around specific skills rather than the higher order of foundational capabilities. The half-life of technical skills has compressed dramatically, with some skills becoming outdated within 12-18 months. Meanwhile, the total number of skills required for a single job increases by 10% annually according to Gartner research.

The Leadership Imperative

Whilst education and immigration policy will address part of the problem, we have work to do. The Australian Institute of Company Directors notes that skilled migration levels are insufficient to meet labour demand, with 66% of directors expressing concerns over this insufficiency to then grow. We have a critical need to re-engineer the system of continuously reskilling our workforces.

This brings us to a critical insight: Australia’s skills gap is fundamentally a leadership gap.

The World Economic Forum’s Future of Jobs Report reveals that while 70% of organisations are looking to hire for emerging in-demand skills, only 51% intend to upskill internally. Meanwhile, 41% foresee team reductions due to skills obsolescence. This raises a pressing question: why aren’t our leaders growing the capabilities we need within our organisations? A solution that would provide us a sustainable way forward.

The Leadership Tenure Challenge

One factor may be the decreasing tenure of corporate leadership. According to Harvard Corporate Governance Forum research, median executive tenures have dropped 20% between 2013 and 2022. This creates a structural consideration of how to support long-term capability building when Executive Leadership churn is occurring at a rapid rate.

Expecting leaders to be strategic and invest in long-term workforce development, when often our environments reward short-term returns, presents a significant challenge. It is important to ask ourselves, does the way we reward our leaders align with the long-term vision? There is a clear correlation: as short-term incentives increase, the motivation to invest in long-term workforce development diminishes. To thrive, we must align our incentives with the strategic goals that ensure sustainable growth and adaptability.

A Systems Approach to Leadership

At Future Leadership, we engage with 20% of Australia’s board members and executives annually. Our experience has led us to develop what we call the Model of Leadership – comprising three key elements of context, capability, and capacity. We believe we need to move beyond a traditional and linear approach where CV + network + experience = leadership credibility, as this formula is no longer sustainable.

Instead, we look to adopt a predictive approach that begins with understanding the emerging environment, identifying the work to be done (not only the role to be filled), assessing the capability to perform, and building the capacity of individuals to succeed.

We are determined to view organisations as capability ecosystems, not skills pipelines. For leaders, capacity to perform in the future will be less about skills and more about learning agility, cognitive aptitude, and the ability to deal with complexity.

Collaborative Solutions Required

Solving Australia’s capability challenge requires collaboration across traditional boundaries:

Integrated talent strategies: Where we integrate skills development and immigration to create cohesive approaches that maximise both domestic and international talent.
Industry-education partnerships: Reimagining how businesses partner with education providers to create more responsive development pathways that focus on foundational capabilities.
Cognitive diversity: Teams with diverse perspective assessment profiles, will better interpret complex signals in our workforces and drive innovation.
Participation focus: Occupations with strong gender imbalances are more likely to be in shortage according to Jobs and Skills Australia – addressing this should be part of our solution.

The Way Forward

Australia’s future competitiveness depends on our ability to develop, attract and retain the right talent with the right capabilities at the right time. This requires innovative thinking that transcends traditional boundaries between domestic skills development and immigration policy.

Most importantly, it requires leadership with the vision to invest in capabilities whilst maintaining sustainable financial results. We think the future is about asking “what’s the work to be done, not the role to be filled,” because ultimately every role will require human-human and human-technology augmentation.

The organisations that thrive in the coming decade will be those that build capability ecosystems aligned with future demands, thinking beyond today’s skills gaps. This transformation begins and ends with leadership that understand the priority of creating a future-ready workforce to secure meaningful change.

Michelle Loader is Managing Director at Future Leadership, a strategic advisory firm that works with Australia’s leading organisations on leadership and capability development.

Navigating the Leadership Frontier: What Organisations Need Most in an Era of Uncertainty

In the wake of the recent AFR Business Summit, a clear narrative emerged from the collective insights of Australia’s most influential business leaders, economists, and policymakers: we are living through an era of unprecedented change, characterised by volatility, uncertainty, complexity, and ambiguity. As RBA Deputy Governor Andrew Hauser noted, “VUCA is back today,” presenting leaders with challenges that extend beyond conventional decision-making frameworks.

For Future Leadership, these insights reinforce our mission to equip executives with the capabilities, mindsets, and strategies needed to navigate this complex landscape. By embedding context, capability and capacity into every leadership decision, we anchor the ever-changing variables to a clear frame of reference. The summit’s discussions highlighted several critical dimensions that validate our approach to leadership development and organisational transformation.

The AI Imperative: Technology as Catalyst, Not Replacement

David Droga of Accenture emphasised that “AI will transform how we work ONLY if we have high levels of curiosity and the ability to share best practices.” This insight reflects a fundamental truth: technological advancement alone is insufficient. Leaders must foster cultures that embrace innovation while maintaining human judgment at the core of decision-making.

As the research reveals, Australia currently invests just 1.3% of GDP in R&D, placing it in the bottom quartile globally. This underinvestment represents both a challenge and an opportunity for organisations willing to lead the technological frontier. Future Leadership’s expertise in helping leaders understand the criticality of leadership at the intersection of technology and human capability has never been more relevant.

Our approach focuses not merely on technology adoption but on cultivating what Robyn Denholm called “the capability and capacity to envision what could be and should be but currently isn’t.” This visionary leadership is precisely what organisations need to transform potential disruption into competitive advantage.

Talent as Cornerstone in Uncertain Times

Goldman Sachs CEO David Solomon’s characterisation of his organisation as “a talent organisation at its heart and a meritocracy” resonates deeply with our philosophy of better leadership for a better world. In periods of economic pressure and rapid change, the ability to identify, develop, and retain exceptional talent becomes the primary differentiator between organisations that merely survive and those that thrive in shaping the future.

Future Leadership’s cross-sector talent development initiatives build leadership capacity at every level, equipping organisations to navigate complexity using a shared language of leadership and expectations. As the summit highlighted, our ability to support leadership in uncertain times is critical in ensuring sustained success.

Overcoming the Risk-Averse Cultural Overlay

Commonwealth Bank CEO Matt Comyn’s observations about Australia’s risk-averse culture reflect a broader challenge: how do leaders balance prudence with the bold decision-making required in a rapidly evolving business landscape? This cultural tension exists within many organisations, creating invisible barriers to innovation and growth.

Future Leadership specialises in helping boards and executive teams address the risk-averse cultural overlay to unlock greater innovation and growth. Our approach doesn’t advocate recklessness but rather recognising risk as an opportunity, based on sound strategic assessment. As partners for de-risking leadership in the age of uncertainty, we provide leaders with the frameworks and confidence to make consequential decisions amid ambiguity.

Balancing Digital Transformation with Human Connection

The summit’s insights on hybrid work arrangements highlight a broader leadership challenge: finding the optimal balance between technological efficiency and human collaboration. Productivity Commission Chair Danielle Wood noted that “well-managed hybrid work where people come together deliberately works well,” while “fully remote work has a negative impact.”

This subtle balance extends beyond work arrangements to the fundamental question of how organisations leverage both digital capabilities and human judgment. Future Leadership helps executives navigate this balance through culture transformation and leadership communication, avoiding both technological resistance and overreliance on automation at the expense of human wisdom.

Fostering Diversity and Inclusion as Strategic Imperatives

The discussions around female representation at executive and board levels underscored that diversity isn’t merely a social obligation but a strategic imperative. Organisations with diverse leadership teams consistently outperform their more homogeneous counterparts, particularly in complex decision-making scenarios.

Future Leadership has played an important role in growing female representation at the executive and board level, appointing over 50% women to senior positions across our 23-year history. Underpinning these achievements, we remain committed to supporting the next generation of aspiring female leaders through programs like the Annual Future Board Scholarship. Our expertise in cultivating inclusive leadership creates more resilient organisations capable of navigating uncertainty with multiple perspectives and approaches.

Conclusion: Leadership as the Defining Variable

What emerges from the AFR Business Summit is a profound truth: amid economic pressures, technological disruption, and geopolitical uncertainties, leadership quality becomes the defining variable in organisational outcomes. The summit left me with one clear and resonating thought: “By strengthening our commitment to innovation, diversity, and talent development, we can not only navigate uncertainty but also transform it into an opportunity for sustainable growth and leadership.”

Future Leadership stands ready to guide organisations through this transformative period. Our deep expertise in identifying and developing adaptive, forward-thinking leaders positions us uniquely to help organisations not just weather uncertainty but harness it as a catalyst for growth. In a world where, as Greg Boorer of CDC advised, leaders must “be super passionate, always keep improving what you’re doing, and every day is about how we can get better,” we provide the frameworks, insights, and development pathways that turn this aspiration into reality.

The challenges identified at the AFR Business Summit aren’t passing concerns but fundamental shifts in the business landscape. Organisations that invest in leadership development now will be positioned to thrive amid uncertainty, while those that neglect this critical dimension risk falling behind. We hope to meet you where you’re at, and help you get where you dream to be.

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Adam Kyriacou is a leadership specialist who has worked internationally across executive search, interim talent management, and leadership development. Please reach out to Adam for a conversation about the guidance you are looking for when it comes to future leadership.

The Business Case for DEI in Australia: Beyond US Politicisation

In an era where American corporations are increasingly retreating from diversity, equity, and inclusion (DEI) commitments under political pressure, Australian businesses have a unique opportunity to distinguish themselves through steadfast commitment to these principles—not just as social imperatives but as drivers of tangible business value.

In Australia’s For Purpose sector, I’m seeing a shift to evidence-based approaches in an effort to sure up the case for DEI.

As major US companies disband DEI teams, scale back programs, and remove public-facing commitments, or in the case of NASA, remove all mention of diverse leadership achievements, Australian leaders are sensing the need to rebrand DEI. The retreat we are witnessing is largely driven by polarised political discourse rather than business fundamentals. The conflation of DEI with broader culture war issues has obscured a critical truth: properly implemented diversity and inclusion strategies deliver measurable business benefits. So, how do Australian organisations plan to shift the DEI focus to an evidence-based discourse around tangible business value?

The For Purpose Sector’s Leadership in DEI

Underpinned by a philosophy of inclusion, Australia’s For Purpose sector has been at the forefront of meaningful DEI implementation. As an executive search and leadership consultant with over 20 years of experience in this sector, I’ve witnessed firsthand how organisations that embrace authentic diversity initiatives outperform their peers.

Take Oxfam Australia’s board transformation as an example. When faced with rebuilding their entire board, the organisation implemented a structured Capability Framework and Matrix specifically designed to support measurable diversity quotas. This wasn’t diversity for diversity’s sake—it was a strategic decision to ensure complementary capabilities at the decision-making table, resulting in more robust governance and deeper community connections. With the Oxfam CEO position in market right now, we are actively continuing this commitment to bringing diverse perspectives to the decision-making table.

Similarly, organisations like Beyond Blue have transformed their leadership approach to reflect the diverse communities they serve. By prioritising diverse executive appointments, they’ve shifted the national conversation from reactive mental illness treatment to preventative mental health—a fundamental strategic pivot that has broadened their impact and relevance.

The Business Case: Why DEI Drives Value

While Australia faces its own challenges regarding equity and inclusion, particularly concerning Indigenous representation, gender equality, and multicultural integration, our political climate has not (yet) weaponised these issues to the same degree as in the US.

This creates a strategic advantage. Australian businesses can evaluate DEI initiatives based on their returns ahead of potentially navigating intense political crossfire.

The data supports this approach.

A very recent report by EY (EY, January 2025) emphasises that DEI is not only an ethical imperative but a critical driver of innovation and economic growth. The report suggests that fostering inclusive workplace cultures that value differences and amplify underrepresented voices leads to environments where individuals thrive. The World Economic Forum’s DEI Lighthouses 2025 Report, published earlier this quarter, presents case studies of organisations that have achieved significant, quantifiable, and sustainable impacts through DEI initiatives. (WEF, January 2025). It highlights how strategic DEI interventions can lead to improved to overall organisational performance. In addition, AFR news articles see Australia’s leaders continue to pledge their support of DEI, including Fortescue, Telstra, Goodman Group and WiseTech Global, all recently expressing their commitment to diversity and inclusion and highlighting its benefits (AFR, January 2025).

According to Diversity Council Australia research, inclusive organisations are 10 times more likely to be highly effective and 4 times more likely to be innovative. Despite this, Pro Bono Australia’s surveys reveal that while approximately 47% of For Purpose organisations have formal DEI policies, only 28% have specific targets and accountability measures—suggesting a significant opportunity for organisational improvement.

The business case for DEI remains compelling, regardless of political debates:

Innovation Through Cognitive Diversity
Research consistently demonstrates that teams with diverse perspectives generate more innovative solutions. A 2018 Boston Consulting Group study found that companies with above-average diversity produced 19% higher innovation revenue. In Australia’s knowledge economy, this innovation premium provides a critical competitive edge.
Market Understanding and Access
Australia’s consumer base is increasingly diverse. Companies whose workforces reflect this diversity gain deeper insights into varied market segments. For businesses expanding into Asia-Pacific markets, cultural diversity becomes even more strategically valuable.

Our work with the National Disability Insurance Scheme (NDIS) provides an instructive example. Organisations that have incorporated lived experience into their leadership teams have developed more responsive and effective service models, particularly in regional and remote areas where communities often feel forgotten.

Talent Attraction and Retention
In a tight labour market, companies with authentic inclusion practices hold significant advantages. Research by Diversity Council Australia shows 75% of job seekers consider diversity policies important in their employment decisions. This is particularly true for younger workers, who prioritise diverse and inclusive workplaces.

The For Purpose sector faces unique challenges in this regard. Without the high remuneration opportunities of the corporate sector, these organisations must develop compelling Employee Value Propositions that speak to meaningful work and inclusive cultures. When done effectively—as with Movember and Possibility —these organisations can attract exceptional talent despite financial constraints.

Notably, the Australian Institute of Company Directors reports that NFP boards typically have higher gender diversity than corporate boards, with women making up approximately 41% of NFP board directors compared to 34.2% for ASX 200 companies. This suggests the For Purpose sector is already leading in certain aspects of diversity, creating a foundation for further progress.

Risk Mitigation and Governance
Diverse leadership teams make better decisions by considering a wider range of perspectives, reducing the risk of groupthink. According to McKinsey research, companies in the top quartile for gender diversity are 25% more likely to achieve above-average profitability.

In the Indigenous sector, this diversity dividend is particularly evident. Our historic appointments of Indigenous leaders such as the Commissioner for Indigenous Children and Young People and executive positions in land rights and academic organisations and have transformed governance approaches, creating more culturally appropriate and effective systems. However, challenges remain—Indigenous representation in senior leadership roles in the For Purpose sector sits at approximately 2.7%, while Indigenous Australians make up 3.2% of the population, indicating a continued need for intentional inclusion strategies.

At Future Leadership, we proudly recognise our achievement of placing over 50% women into senior leadership roles and over 3% Indigenous leaders throughout our 23-year history.

Practical Implementation: Beyond Tokenism

The backlash against DEI in America partly stems from performative approaches that delivered more public relations value than organisational transformation. Australian businesses can learn from this by:

Focusing on Outcomes: Measuring DEI success through business metrics like innovation output, talent retention, and market growth, not just demographic statistics. The Australian Charities Report shows organisations with diverse boards were 18% more likely to report improved financial performance year-over-year.
Integration vs. Isolation: Embedding inclusion principles throughout operations rather than siloing them in HR or corporate social responsibility departments.
Leadership Accountability: Ensuring leaders are evaluated on their ability to bring their own diverse perspectives, as well as to build and leverage diverse teams.
Employee Engagement: Creating authentic opportunities for all employees to contribute to inclusion strategies, avoiding top-down impositions.
Setting Specific Targets: Moving beyond general policies to measurable goals—especially important given that only 28% of Australian For Purpose organisations currently have specific DEI targets and accountability measures.

The Path Forward: Strategic Differentiation

Today, Australian businesses have a strategic opportunity to differentiate themselves. By maintaining principled commitments to diversity and inclusion—backed by robust business cases—Australian companies can:

Attract global talent disillusioned by American corporate retreats
Build stronger connections with diverse consumer bases
Develop more innovative products and services
Create more resilient organisational cultures

Conclusion: Business Principles Over Politics

The debate around DEI should ultimately be grounded in business fundamentals. When properly implemented, diversity and inclusion initiatives deliver measurable returns through enhanced innovation, market understanding, talent attraction, and decision-making.

Australian businesses would be wise to look beyond the American political debate and evaluate DEI strategies based on their contribution to business outcomes. In doing so, they may discover that principled commitment to inclusion isn’t just socially responsible—it’s competitively advantageous.

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Kate Wheeler is an executive search and leadership consultant with over 20 years of experience in the For Purpose sector. She has partnered with organisations including Oxfam Australia, Beyond Blue, Heart Foundation Australia, and numerous Indigenous-led organisations to build diverse leadership teams that deliver measurable impact. Kate is an alumna of the International Women’s Forum Australia’s Emerging Leaders Program and a recipient of the AESC Global Community Commitment Award, and actively volunteers with organisations including SisterWorks and LiverWell.

The role of leadership in achieving future health equity

Future health equity is an imperative goal in today’s society. Changing demographics, technology advancements, workforce shortages, economic impact… the list of complexities in the health operating environment is converging. As a result, the need to design inclusive health services renders leadership in health imperative.

In order to provide patients and populations with high-quality and accessible care, it is crucial that we advocate for a representative healthcare workforce, and provide students opportunities to learn from, with, and about each other to improve patient outcomes (Health Professionals Education, 2020).

My colleague, Dr Marcele De Sanctis, recently stated, “The challenge for healthcare leaders is not just about providing high-quality care but navigating an increasingly complex environment. This demands resilience, adaptability, and sustainability. Great leadership can no longer be assumed—it must be continually developed.”

By leveraging and fostering diverse leadership, inclusive policies, and ensuring equitable access to resources, leaders can drive meaningful change. The system requires a commitment to understanding the unique needs of different communities and a proactive approach to dismantling systemic barriers. The journey towards health equity is continuous, demanding collaboration, innovation, and an unwavering dedication to justice and opportunity for all.

As we celebrate our firm’s involvement in the IPAA International Women’s Day 2025, themed ‘Marching Forward for Women’s Health’ and launch our own Health Leadership Program, this milestone offers a timely opportunity to reflect on the critical role of leadership in advancing health equity, not only for women, but for all marginalised communities.

As an executive leadership specialist who has placed senior leaders across public, private and community health, I believe there are specific leadership capabilities we should prioritise when we think about selection, succession and development of leaders in health.

Inclusive Decision-Making

Inclusive decision-making is paramount in addressing health disparities. Leaders who incorporate diverse perspectives into healthcare policy and program development are better equipped to tackle the unique challenges faced by different populations. We know that people in remote areas, particularly Aboriginal and Torres Strait Islander communities, and lower socioeconomic groups often experience higher rates of preventable hospitalisations and chronic disease. Inequities manifest in life expectancy gaps, higher rates of diabetes, cardiovascular disease, and mental health conditions. Leaders who prioritise engaging with community stakeholders create more tailored and effective healthcare solutions.

Cultural Competence in Healthcare Leadership

Reports from the Australian Institute of Health and Welfare emphasise the importance of culturally safe healthcare environments to improve service uptake and outcomes. Understanding the diverse cultural backgrounds and experiences of patients is essential for providing equitable care. Healthcare leaders must prioritise cultural competence, ensuring that all team members are trained to respect and respond to the cultural needs of their patients. This approach fosters trust and improves health outcomes.

Data-Driven Approaches

Effective leaders use data to identify and address health disparities. By analysing metrics and gathering community feedback, leaders can pinpoint areas of need and target interventions more precisely. Data-driven strategies enable healthcare organisations to allocate resources efficiently and measure the impact of their initiatives.

Collaborative Partnerships

Health equity cannot be achieved in isolation. There is growing emphasis on partnership and co-design with consumers—particularly from Indigenous, CALD, and disability communities—to improve the relevance and effectiveness of healthcare services. Collaborative partnerships across sectors are crucial for creating comprehensive solutions. Healthcare leaders must work with community organizations, government agencies, and private entities to develop and implement strategies that address social determinants of health.

Workforce Diversity and Representation

The impact of diverse leadership teams on developing more equitable healthcare systems cannot be overstated. Diverse boards and executive teams bring varied perspectives that lead to more innovative solutions. Ensuring representation at all levels of leadership is fundamental to addressing health disparities and fostering an inclusive healthcare environment.

Resource Allocation and Accessibility

Leadership decisions about funding, facility locations, and service delivery models significantly affect health equity. Leaders must prioritise resource allocation to underserved communities, ensuring that all individuals have access to quality healthcare services. This commitment to accessibility is crucial for reducing health disparities.

Transformative Leadership Models

Examining leadership styles that effectively challenge systemic barriers to health equity is essential. Transformative leaders inspire change by advocating for policies and practices that promote equity. They lead with empathy, integrity, and a vision for a just healthcare system.

Technology and Innovation

Forward-thinking leaders leverage digital tools to improve access and health outcomes. Telehealth, mobile health applications, and data analytics are powerful tools for reaching underserved populations. By embracing innovation, leaders can drive significant improvements in healthcare delivery and equity.

Policy Advocacy and Systemic Change

Healthcare leaders play a pivotal role in advocating for policies that address social determinants of health. They must engage in policy discussions, collaborate with policymakers, and champion initiatives that promote health equity. Systemic change requires persistent advocacy and a commitment to dismantling barriers.

Sustainable and Scalable Initiatives

Ensuring long-term commitment to health equity beyond short-term programs is vital. Leaders must develop sustainable and scalable initiatives that can adapt to changing needs and continue to address disparities. This approach ensures that progress towards health equity is maintained over time.

As we march forward this IWD, it is clear that leadership plays a crucial role in achieving health equity. I encourage you to nominate a leader in your organisation to join us for an unparalleled leadership journey designed exclusively for health leaders. The Future Leadership^TM Health Leaders Program is an immersive experience that will equip professionals with cutting-edge leadership capability and connect them with a powerful network of like-minded professionals. Participants will dive deep into self-insight, understanding their unique leadership style, and how to harness it for greater impact. Learning from industry experts and thought leaders, gaining insights will ultimately transform one’s approach to leadership in health. Don’t miss this opportunity to learn from the best and grow alongside the bravest leaders in health.

Deborah Komesaroff, an executive search consultant specialising in placing senior leaders and executives into boards and organisations in Australia, is deeply passionate about human-centred health care and accessibility for underserved communities. She believes leadership is the cornerstone of achieving health equity and is committed to supporting leaders who champion this cause.

Leading through complexity: A decision-making framework to support future leadership

Future leadership has a different algorithm: context, capability, capacity.

Managing complexity is our responsibility as leaders.

In our fast-paced environment, leaders spend 40% of their time making decisions (McKinsey, 2023). This is amidst an operating environment that sees our reference points changing constantly. In a world where capability requirements can barely stay ahead of skills obsolescence. And decision-making fatigue blurs a leader’s capacity to impact.

Do we have the decision-making framework in place to support our executives?

The Model of Leadership™ provides a structured decision-making framework to help leaders navigate complexity and de-risk leadership blind spots. Decision velocity can overwhelm leaders, so it is critical to outline the anchors that allow efficient and effective choices to be connected to data, evidenced by science, and relevant to everyday outcomes.

According to a recent study of more than 14,000 employees and business leaders across 17 countries by Oracle and NYT best-selling author Seth Stephens-Davidowitz,

85% of business leaders have suffered from “decision distress” in the past year,
74% of those surveyed disclosed that the number of decisions they make daily has multiplied tenfold in the last three years, and
59% admitted facing a ‘decision dilemma’ – the struggle of not knowing which decision to make – more than once every single day.

Research published in Harvard Business Review reveals that more often than not, executives accept roles without ever having discussed decision making in interviews (2024). While the model applies to all decision making, at Future Leadership, we especially use this model when we are making tough decisions about talent.

Why a New Talent Model?

Traditional leadership frameworks often overemphasise past performance (what someone has done) while overlooking future potential (what someone could do under new or more complex conditions). The model by Future Leadership™ addresses this gap by recognising three interlocking elements that predict a leader’s future success:

Context – the operating environment and role-specific demands.
Capability (Performance) – the knowledge, skills, and mindsets leaders have acquired.
Capacity (Potential) – the ability to handle complexity, learn rapidly, and adapt.

By broadening the lens from “what have you done before?” to “how might you think, learn, and perform under evolving conditions?” this model offers a practical, research-based approach for forecasting leadership effectiveness.

Context: The Crucible for Leadership

Context sets the stage in which leaders operate. It includes:

Macro environment –industry disruptions, emerging technologies, societal shifts, growth stage, organisational culture and values.
Micro environment – role requirements, level of work, technical expertise needed, and the team’s levels of diversity and inclusion.

Leaders who thrive in one context might struggle in another. For instance, an executive in a fast-paced tech company may excel in driving innovation and rapid growth, whereas a leader in a large, established corporation might be more adept at managing complex hierarchies and ensuring operational stability. Research reported by the Harvard Business Review (2018) has shown that organisations using context-based approaches to leadership selection are 3x more likely to see a better fit than those using generic “one-size-fits-all” models.

Implication: Organisations should tailor their evaluation and development efforts to each leadership role’s unique context. In short, a strong candidate is not just “well-rounded” but “well-suited” to the specific challenges ahead.

Capability: What Leaders Bring to the Table

Capability refers to the knowledge, skills, behaviours, and mindsets leaders have developed and demonstrated over time. It includes:

History of achievement – evidence of sustained performance.
Critical Experiences – exposure to pivotal roles, projects, or challenges.
Capabilities – an umbrella term for transferrable skills, mindsets, and behaviours (mapped to our future capability framework).
Reputation – how a leader is perceived by peers, direct reports, and external stakeholders.
Style – refers to the distinct approach a leader uses to guide, motivate, and influence others, shaped by factors such as personality, values, and context.

Crucially, capabilities are transferrable across roles and contexts, though application in new or complex environments is not always guaranteed. From a predictive standpoint, past performance matters most when a leader has had prior experience with similar challenges. However, as roles become more complex, an over-reliance on past success can be misleading if the future task environment is vastly different.

Implication: Evaluate a leader’s proven capabilities alongside their willingness (and readiness) to flex these capabilities under different scenarios. Past achievements are important, but capability must be seen in context.

Capacity: Matching “the Size of the Person” to “the Size of the Role”

Perhaps the most distinguishing feature of the Future Leadership Model is its focus on Capacity, defined as a leader’s potential to handle increasing levels of complexity, ambiguity, and challenge. It encompasses:

Motivation – what drives a leader, and how do they channel their energy and maintain well-being under pressure?
Learning Agility – willingness and ability to learn (and unlearn) quickly, especially in first-time, tough, or rapidly changing conditions.
Cognitive Aptitude – refers to high cognitive aptitude that can embrace multiple perspectives and strategically navigate complex environments, ensuring a leader remains motivated and effective even in challenging situations.
Dealing with complexity – how leaders think, interpret, and make sense of the world around them. Leaders at more advanced stages are likelier to navigate paradox, embrace multiple perspectives, and adapt to fluid scenarios.
Derailers – the traits or behaviours that can hinder a leader’s effectiveness, such as an inability to manage stress, poor interpersonal skills, or resistance to feedback.

As Forbes noted in 2022, “What sets excellent leaders apart is the way they embrace and work with complexity. It’s not what you know, but how you think.” Leaders must expand their mindsets—becoming more collaborative, self-aware, and better able to think strategically. Doing so fosters the vertical development necessary to handle new leadership demands as organisations evolve.

Implication: When selecting or developing a leader, it’s not enough to ask, “Have they done it before?” We must ask, “Can they grow in complexity to meet the new challenge?” If there’s a mismatch between the complexity of the role and the leader’s current stage of development, performance likely suffers.

Piecing It Together

The Model of Leadership™ underscores that true leadership success is more than past achievements. At its core, it’s about:

Context – understanding the unique organisational and role environment.
Capability – leveraging existing strengths, history of achievement, and transferable skills.
Capacity – ensuring the leader can handle complexity, learn quickly, and stay motivated even in unfamiliar territory.

These three elements interact. A leader with ample capacity but no relevant background may still thrive if they learn swiftly. Conversely, a leader with a stellar track record may falter in a new, high-complexity environment if they lack the capacity to adapt. Equally, context drives which capabilities matter most and highlights the level of complexity a leader must manage.

Leadership Implications for Organisations

Selection and Assessment

Context-Driven Selection: Clarify the role scope, complexity, and cultural nuances before shortlisting.
Objective Tools and Subjective Insight: Combine psychometric measures that gauge cognitive capacity, personality, and motivation with the informed judgment of seasoned hiring professionals.
Predictive Validity: Look for reliable, validated tools that measure learning agility and capacity for complexity.

Leadership Development

Personalised Growth Journeys: Move beyond cookie-cutter programs. Leaders at different stages of development need different types of challenges and experiences.
Emphasis on Vertical Development: Encourage leaders to expand their mindsets—by seeking out diverse teams, practicing perspective-taking, and reflecting on how they make meaning of challenges.
Feedback and Mentoring: Provide continuous feedback loops and coaching to help leaders integrate new learning and refine their approach.

Sustainability and Future-Readiness

Build a Portfolio, Not Just a Pipeline: As the Harvard Business Review (2018) suggests, organisations should see leadership talent as a diverse portfolio. Develop multiple potential successors capable of handling different environments.
Systems Perspective: Recognise that leadership capacity shapes, and is shaped by, organisational culture, performance management, and strategic direction.
Ongoing Assessment: Because roles and contexts shift, leadership assessments should be revisited regularly.

As organisations face unprecedented levels of disruption, Future Leadership’s Model of Leadership provides a roadmap to identify and grow leaders who can thrive both now and in the future. By accounting for Context, Capability, and Capacity, this model captures the complexity of modern leadership demands and highlights the critical importance of ongoing development.

Ultimately, leadership is not solely about what you have accomplished; it is about who you are becoming. Equipped with the right mix of context-specific insights, track record analysis, and capacity-building strategies, leaders—and the organisations they serve—will be far more prepared to succeed in the face of uncertainty and seize the opportunities that lie ahead.

References

Adult Development Theory: Kegan, Lacey, Bob Anderson, Jennifer Garvey Berger (1994)
Learning Agility: De Meuse (2017)
Complexity Mindset: Forbes (2022, 2020), HBR (2018, 2024), Bain & Company, McKinsey & Co
Cognitive Ability & Leadership: Dragoni et al. (2011), Hou et al. (2022), Adams et al. (2018)
The Decision Dilemma: Oracle and Seth Stephens-Davidowitz (2023)

Executive Career Transitions: Insights for HR Leaders Supporting Career Transitioning

In my two decades of working on executive career transitions and outplacements, I’ve witnessed just how dynamic the landscape of leadership has become for Australia’s executives and senior leaders. The Outplacement and Mobility 2024 Trends Report reveals that 73% of HR leaders surveyed globally are considering retrenchments this year. Economic shifts, heightened governance expectations, and a growing focus on capabilities such as digital fluency are transforming the very nature of executive roles. Data from the report surveying over 3000 HR leaders shows that ‘employers were retrenching employees’ while simultaneously engaging in a ‘war for future talent’. These changes mean that career transitions are no longer role-to-role moves, especially at the executive level. They’re strategic cross-industry leaps that demand a tailored approach to future capabilities.

AusBiotech Insights from Life Sciences Talent Specialist Sandra Kerr

The annual AusBiotech conference stands out as a pivotal event in the life sciences sector, uniting our vibrant biotech community to engage in discussions about current topics and emerging trends. Industry leaders generously shared their experiences and insights, covering a wide range of subjects from early-stage innovation to Australia’s health security. This year’s event attracted record numbers of attendees from across Australia and around the globe.

CEO Rebekah Cassidy highlighted the presence of over 2,900 organisations, including nearly 1,600 biotech and medtech companies. The Hon. Minister Mark Butler stated that it is evident that Australia’s biotech sector possesses transformative potential for health, economic growth, and research leadership. The Minister highlighted Australia’s impressive global ranking—7th in health and medical research. However, the sector’s modest 0.3% contribution to GDP underscores an urgent need to leverage our research strengths to drive economic growth, secure jobs, and bolster Australia’s role in medical discovery.

The conference more broadly addressed critical policy issues affecting the sector, including national health security, supply chain resilience, and workforce capabilities. Australia is a prime location for life science companies due to its robust clinical trials capabilities. Around 1,000 new trials commence yearly, supported by world-class medical research infrastructure and efficient regulatory pathways. Moreover, the government offers incentives like the R&D Tax Incentive, fostering both local and international investments. With strong intellectual property protection and proximity to Asia, Australia remains an attractive global trade partner. The critical piece of the biotech puzzle is in fact a human piece; how might we attract and retain our world-class talent by focusing on the pipeline of innovation to commercialisation?

As we close 2024, it is imperative to address the lack of female leadership in Australian biotech and to explore how we can effect meaningful change.

One of the most impactful panels I attended posed a critical question: why does the underrepresentation of women in biotech leadership persist in 2024? The panelists passionately argued that with only 11% of biotech CEOs being female, we are missing out on the unique advantages that diversity offers, particularly in innovation-driven fields like ours. The conference resonated with the strong sentiment that gender diversity should no longer be up for discussion; it must become a reality. Research consistently shows that diverse boards and leadership teams outperform their peers; a 2022 study revealed that Australian companies with gender-diverse leadership report higher profit margins.

To truly shift the paradigm, our industry must commit to establishing structured support networks, dedicated programs for women entrepreneurs, and visible role models. Policies that promote flexible work arrangements, equal pay, and clear pathways for advancement are essential for fostering an inclusive culture that enhances employee satisfaction and reduces turnover. As industry leaders, how can we actively “send the ladder down” and cultivate a robust pipeline of future female leaders?

The discussions at AusBiotech reinforced the notion that closing this gender gap is not only a moral imperative but also a strategic advantage for the future of our sector.

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