I'd like to begin by acknowledging the Traditional Owners of the land on which we meet today, here in Meanjin on Yuggera and Turrbal country.
I pay my respects to Elders past and present. I'd also like to thank QUT for inviting me to be part of today's Forum. I'm looking forward to speaking with Ellen shortly.
But I'm also grateful for the opportunity to "set the stage," as it were for a discussion on leadership. So let me start with what I believe is a nagging paradox for anyone in Australian business. Simply put:
The world of business has never been more challenging….and yet there has never been a better and more needed moment for business leadership. I would like to try to make sense of this paradox for you. I'll start with the current environment in which we operate. Much of this will be familiar.
The world has become less integrated. We are retreating from a world of trade and globalisation – the trends that have shaped business for nearly four decades.
Everywhere we see the rise of insularity. National champions. Tariffs and trade barriers. War and geopolitical tensions on three continents.
At the same time, competition grows globally. The developing world is full of innovation. There is an abundance of investment capital in every region. Emerging countries are investing in the skills and capabilities of their own people. Europe, the US, and Australia all face new competition.
And then there are the business headwinds. Inflation. Labour shortages. Economic uncertainty. Threats to shipping routes. Regulatory barriers in every industry.
All this amounts to a world that is harder - not easier - to navigate. A world where even decades of past growth and success can no longer be taken for granted.
A world that feels as if it's in the midst of a great transition.
In this more tumultuous, competitive environment, Australia sits at a crossroads. For decades, the strength and global competitiveness of Australia has been taken for granted. And why not?
Top talent. Top education. Natural resources that are the envy of the world. Access to the world's markets and proximity to the high-growth areas of Asia.
Nowhere is this truer than the minerals and metals industry – the world I know best. It has fueled our prosperity and provided a standard of living that other nations can only imagine.
Today, the world of mining and its future could not be more vital. It is impossible to imagine a transition to new forms of energy and electrification without the indispensable minerals and the know-how to extract them from the earth.
Indeed, the health of the mining industry has given Australia a mix of talent, leadership, and prosperity that sees the sector contribute well beyond the extraction of commodities - from investing in green technologies to supporting greater economic prosperity in regional and remote communities.
Yet, more than perhaps any other sector, the Australian mining industry is at a pivot point. The dominant endowments and markets we have enjoyed for decades are mature and past the period of aggressive growth.
A shift to the resources and metals that underpin decarbonisation and a lower carbon future is underway… think copper, nickel, lithium, rare earth metals, lower carbon steel.
In this shifting world, there are many competitors aggressive in their pursuit of market share and the technology that unlocks a lower cost of supply. Often better placed than Australia.
The shift in the nickel market tells this story best in the recent past. For BHP, this resulted in the difficult but necessary decision to temporarily suspend our Western Australia Nickel operations.
These are the challenges we face – in mining and in many business sectors. Yet, this is a time when business leadership can truly be a differentiator for Australia, in navigating uncertain times and creating the opportunity for growth and continued prosperity.
This growth and prosperity will not happen without collective intervention and leadership action. I will offer a few thoughts on three areas where I think – as leaders – we can all make a difference:
Firstly - it starts with our people and creating a culture that is values-based, inclusive, and high performing. Competition for talent and skills is high. We know that leadership matters in this area. Those leaders that can provide a compelling vision of a company's purpose, strategy and how we each contribute will surely attract and retain the best talent. Leadership drives culture and culture drives performance. This has always been true, and could not be more relevant than it is today.
Then there is a second component of leadership: having the courage to challenge the status quo. In today's world, this means making the public case for long term competitiveness – with policy makers, with partners and the public.
This is a complex challenge, but it is a leader's job to bring clarity to it. Continued business success relies on a whole ecosystem of investment in skills and productivity. And it demands policy settings that are stable and globally competitive.
Those of us inside a business know what it takes to compete in our respective markets. It is our job to speak out and contribute to fiscal and regulatory reform that will enable global competition.
It isn't always easy. In the resource sector, this has certainly led to some rich debate, with the coal royalty regime here in Queensland a case in point. Let's remember, Queensland is a premier coal producing region, and a major exporter to the world's steel making sector. Yet, the state's royalty regime is the highest in the world – with the maximum rate some 43 per cent higher than the next nearest jurisdiction (Ref; QRC) which makes it hard to attract the capital needed for future growth.
The sugar hit of revenue won't leave the state better off in the long run if investment is driven elsewhere. In this, I am not advocating for policy critique for the sake of it – rather I am suggesting that a partnership approach between business and policy makers will likely create better outcomes for all. But is starts with making our views known in a respectful way, rather than grumbling on the sidelines.
And finally - leadership has an obligation to raise the bar when it comes to creating safer and more productive outcomes. We must be a leading voice for greater national competitiveness. We know this is a challenge in Australia.
In the resources sector alone, labour productivity has remained flat over the past 20 years. Meanwhile, wages have doubled. This is a not a sustainable formula and requires leadership and investment to change course – in greater automation, in smart technologies, in new capabilities, and in industrial relations reform.
This is a national dialogue. Business leaders must be in the centre of it.
It means "competitiveness" must be the touchstone of every business conversation. Yes, competitiveness is sometimes described as an attribute or a skill. To me, it is indispensable part of what it means to be a leader.
The competitive leader wants to raise the bar. The competitive leader is uncomfortable settling with what has been. The competitive leader wants to challenge a team to push for more…to think differently…to never take anything for granted.
I don't claim to be an expert in competitiveness, rather my sense is this is where my focus and time must lie. As I said at the outset of my remarks, the world has become a much more challenging place… and a much more challenging place for all Australian business.
For some time, I've been making the case that both the public and private sectors need to understand what it will take to retain the high standards of living Australians enjoy.
It requires a concentrated effort: in education, in technology, in attracting capital, and streamlining the process for taking on large projects. We need to be honest about the international benchmarks that show we have not been keeping up.
Restoring our competitive edge takes a competitive mindset. A readiness to take on new challenges, and the ones that follow.
These are big, complex topics. But I also maintain the formula for leadership remains simple: It's about people and culture; it's about challenging the status quo when it makes sense to do so; and, it's about being an unrelenting champion for competitiveness.
That's why I urge all the leaders here today to look out on the business landscape and see both uncertainty – and immense opportunity.
There is a demand for your leadership now. Business needs it, Australia needs it.
Thank you so much for your time today. I look forward to our conversation.
