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When Winners are Sinners…

11 Friday May 2018

Posted by Burning Manager in Uncategorized

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Alex Malley, ASIC, Australian Cricket team, Australian Securities and Investment Commission, ball tampering, banking Royal Commission, Callum Hawkins, CEO, Chair, Commonwealth Games, Commonwealth Games 2018, Directors, entitlement, Executive, Michael Shelley, win at all costs, win without conscinces, winners are sinners

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It strikes me that a couple of the by-products of our self-obsession are this overwhelming sense of entitlement I’m noticing lately and this ‘win at all costs’ culture. We can’t necessarily call it an aberration because there are a number of factors that individually may not give rise to it, but collectively may just be significant causation. I can almost track it back to the selfie stick! Social media, and particularly LinkedIn, in the business context, has had a significant role to play. Everywhere nowadays we are told that we have to have a ‘narrative’ and be conscious of ‘brand self’. LinkedIn is, by its very nature, a form of selling yourself and with this comes the danger of self-absorption. I’m sure I’m not the only one who was desperate to get to the 500+ connections to prove that I’m no slouch in the networking game. How many do I actually know well, trust and cherish as colleagues or business partners…I’d be stretching it at 50.

You might argue that this is all a bit trivial and doesn’t really harm us in business or society.  However I think it has potential to do great harm and here’s why. With self-absorption comes entitlement and arrogance. A comfortable bed fellow with this is the ‘win at all costs’ culture. Nothing wrong with winning you might argue. We need winners. No-one wants to be backing a losing horse. No-one wants to be backing a CEO and Board whose company isn’t winning on the stock market. But there is a line we must draw in business and life where the pursuit of a win has to come secondary to other issues. The delivery of shareholder value at the cost of say allowing or turning a blind eye to modern slavery is but one example.

You don’t have to look far to see the unfettered pursuit of winning at all costs in our everyday lives and the world of commerce. Three significant events related to Australia have happened recently and while distinct and seemingly not linked, do, I think share a common thread of ‘win without conscience’. Firstly there was the ball tampering incident by the Australian men’s cricket team in South Africa. I’ve held off blogging about this until the heat has died down. There was too much emotion flying around in the direct aftermath for reasoned analysis. Of all the commentary I read I found that very little focussed on the ‘win at all costs’ culture as a causative factor. In short an absolutely mindless act was undertaken on the field of play using sandpaper to alter the texture of the ball to try and win a test game. Sure it was to get one up in the series but there are few clearer cases of a fixation on the target of winning, with all other considerations out the window, than this. All rational thought appears to have been missing, especially by the leadership team. What in itself would have been foolish in the days of radio, was clearly a complete brain explosion when the game is telecast in 4K definition live! When considering why they did this, you have to think in terms of risk and reward. Why would they risk so much? The answer lies I believe in the notion of both entitlement and ‘win regardless of how’.

Our players clearly have been told they are the best and they have a firm belief that the ‘crown’ is theirs by rights. At its mildest it manifests itself in the over the top celebration when a wicket falls or a century scored. At its worst players doctor the ball to gain an advantage. Underpinning this is an on-field tirade of abuse against the opposition called ‘sledging’. In junior sport if you caught your child doing this you would chastise them. We don’t tolerate it in the business workplace so it’s hard to see why we even encourage it in the business of sport. John Buchanan, the ex-Australian cricket team manager and now leadership coach, was early to hit the media decrying what happened and the parlous leadership that allowed the situation to arise. What was missing in his critique was the fact that the toxic culture that gave birth to this was very much in evidence when he was the coach.

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The second event happened at the Commonwealth Games. It was important to our nation’s pride that we won the most medals and ‘bossed’ it over everyone. So much so that at times I felt a little bit like we were living in a post war Germany – where the GDR used to dope up their athletes because winning meant so much. I’m not suggesting for a minute we did this but the fervour and ‘we’re better, stronger, faster than you’ zeal which is a disguised xenophobia was certainly tainting the air. But let’s not get too hung up on the Games. They are the friendly games after all where sportspersonship and comradery are the most important aspects. And yet I’m not sure that this was so. The marathon was a case in point. It was painful to watch the exhausted leader of the marathon, the Scotsman Callum Hawkins collapse just 2 kilometres short of the finish line. What was even more painful for me – at the friendly Games remember – was the sight of our Australian runner, Michael Shelley, powering past him prostrate on the ground as he stormed off to win the much vaunted Gold Medal.

My contention is that if we weren’t so self-absorbed with winning then he would have done the reasonable thing and at least stopped to check his fellow marathoner was OK. Not a hanging offence for sure and not worthy of the trolling he got some time after on social media, but still there is something there that got in the way of basic humanity and compassion. I can’t help think it was the same mindset that brought the sandpaper into play in the Third Test in South Africa.

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So what’s all this got to do with business, aside from sport being big business by any measure? Well my final example of entitlement and ‘win at all costs’ is now on display in the Royal Commission into Banking. CEOs, Chairs and Directors from the finance industry are being paraded in an almost gladiatorial fashion (at last many might add) before the Commissioner and what is being revealed is jaw dropping to say the least. Think of it as another sandpaper incident…every single day! We all suspected that things weren’t good in the sector and the remuneration structures incentivised bad behaviour, but to see the depths that have been plumbed by our elite strata of Directors and Executives is beyond comprehension. If you shook your head at the sandpaper on the cricket ball, your head must be spinning Exorcist style now.

AMP Values

What we have witnessed and heard is layers of hubris, entitlement, arrogance and there is no finer example of a win at all costs attitude than this. In such situations it’s best to ‘fess up’. Strangely though, the cricketers didn’t straight away. In fact they concocted a half-baked story that didn’t hold water for even 24 hours. For Executives and Directors they too have been less than forthcoming, lying even to the regulator ASIC. They have deliberately misled us for years showing one face to staff and shareholders, and a different face to customers; yes even their dead ones! Every night we are blasted with TV advertising showing just how friendly the Banks are, how they help small business, or rescue us from the waves in what is confusingly presented as their helicopter. Their values statements on their websites are exemplars of how true values-based organisations should act…and yet it is a huge deceit.

The exhortations to be winners and promoters of ‘brand me’; quite often perpetuated by the obsession we have today with entrepreneurship have made us morbidly self-absorbed. We need to get away from winning without conscience. We need to become less ‘me, me’ and more community and customer focused. We need humility. We need less ‘super star’ Directors and CEOs who seem to be lionised in some media as though they are the new David Beckham. No exaggeration if you recall Alex Malley! Get over yourselves fellas and shielas – you ain’t that special or interesting. We can only hope that our sporting heroes and our business leaders learn the subtle art of winning and losing. Come at one through humility and the other through wisdom. Choosing which is which is the key. We should all work hard on doing the right thing. No-one really wants the stain of sinning on their consciences, surely, even if a gold watch, parachute or medal are on offer!

A Marriage of Inconvenience? Pinning Your Company’s Colours to the Rainbow Mast

24 Thursday Aug 2017

Posted by Burning Manager in Uncategorized

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Alan Joyce, CEO, Donald Trump, marriage equality, Qantas, Robert K Greenleaf, same sex marriage, servant leader

marriage-equality-in-australia-w

In Australia we are a few weeks off voting in a postal poll that will ultimately decide whether marriage equality will be voted on in Parliament. For a range of reasons, our self-proclaimed ‘fair-go’ culture hasn’t thus far extended to same sex couples who want to commit to their relationship publicly. I can’t recall in recent memory an issue that has so divided politics and (yet to be fully tested) so not really divided the public. Time will tell if my latter assumption here is correct.

As I have blogged about previously, in many cases the corporate world is stepping in where governments have faltered. The adoption of the Paris Climate Accord in the US by big corporates, when Trump pulled out, being the most salient example. And so it is with the marriage equality debate. A large number of companies have publicly expressed their support for marriage equality and this has been recognised by the large logo wall that appears on the http://www.australianmarriageequality.org   website. There are many big names there aside from the obvious like Qantas and Telstra who have made the media when they came out in support. These companies are making a stand and good on them.

Those regular readers of my blog can easily divine that I am in favour of same sex marriage and, to me, other common sense public policy initiatives like support for the LGBTIQQ community. Making our workplaces more welcoming can never reduce productivity or make it harder to attract and retain ‘talent’. A diverse workplace is one of the key ways I believe to establish a great culture and help raise the understanding of all staff. The fact is that as humans we exhibit so many similarities that bind us and that the differences, though often outrageously amplified, are small and at the end of the day quite trivial.

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So it might be surprising to some that apart from my own publicly professed support of marriage equality I haven’t rushed to sign-up to show my support for same sex marriage wearing my corporate hat. It’s not that I have made up my mind to deliberately keep a low profile, it’s more I am still reflecting on the what role or right I have, as leader, to endeavour to promote a long-held ambition through wearing my corporate hat. I’m not there yet. Who knows perhaps in wiring this blog I will reach some conclusion?

In my head the argument goes something like this. A top manager of a company, being the CEO, might take a socially-ethical decision (to them) and decide to promote marriage equality. S/he may do it to reflect the diversity that exists within their workplace. In reality, such a decision is likely to be more of a ‘captain’s call’. What if some of the workforce is against marriage equality? If the naysayers are right there are many in the workplace who believe the sanctity of marriage should be reserved for the union of man and a woman; a number of whom who keep this view to themselves for not wanting to be out-of-step.

Where the CEO raises the flag for the ‘yes’ campaign, that CEO has made a judgment call and must be prepared to stand by it. The argument could also be made that CEO’s need to be principled and authentic and stand by these principles. Lord knows the corporate world has seen precious little truly principled management over the years, especially in the lead up to the GFC. Some might add that the apparent ‘blind-eye’ shown by the CBA over suspicious money transactions is a case in point that principles are held in check in favour of greed even today. So on balance as a CEO, ‘go with the Captain’s call’ my head says on this one.

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But what of the CEO as a leader? If we take a leaf out of the Handbook for Servant Leader written by Robert Greenleaf (wordplay intended). His credo is:

“Caring for persons, the more able and the less able serving each other, is the rock upon which a good society is built. Whereas, until recently, caring was largely person to person, now most of it is mediated through institutions – often large, complex, powerful, impersonal; not always competent; sometimes corrupt. If a better society is to be built, one that is more just and more loving, one that provides greater creative opportunity for its people, then the most open course is to raise both the capacity to serve and the very performance as servant of existing major institutions by new regenerative forces operating within them.”

It might well be argued that a servant leader, caring for people, might take soundings of those s/he leads and reflect the organizational viewpoint as a democratic output. It might be possible that in full humility a pro-YES CEO leader might reflect a pro-NO viewpoint to the world. On the face of it this may not be a huge thing but it does go to what is the nature of organisations and into organisational theory. Is the corporation merely a legal entity defined by contracts? Is it the sum of its parts including the hopes and aspirations of its individual workers, or does it exist as a fluid culture that shifts each time a new person joins its ranks? In some ways organisations are trinities incorporating all three. As leader we need to acknowledge how organic the organisation is and given this, how much more complex it is. It’s too simplistic for the figurehead just to be able to stand up and speak on its behalf without consideration of these other layers.

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So where has this reflection got me? I think I’m happy to be pro marriage equality without having to use the vehicle of my company to make the point. I don’t judge those who do. For the likes of Alan Joyce of Qantas his leadership is around a form of activism and I respect him totally for that. But for me it is almost too easy to stand bestride my company’s brand to make the argument. It would be unfeeling. Hopefully my brand that stands alongside, but separate to, my company’s is enough to show my authenticity on this topic.

Where leaders do need to be mindful after Nov 7 – the day of the vote – is that a degree of healing, empathy and consideration will be needed. Some will feel hurt and some elated. Finding a way to focus team members on positives and what we all have in common, aside from individual and organisational goals, will call upon the special skills of managers and leaders. It’s about re-building coalitions in the workplace – a marriage of minds as it were! We can all say yes to that.

 

Don’t Clobber the Dibber Dobber

17 Friday Mar 2017

Posted by Burning Manager in Uncategorized

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CEO, dibber dobber, dobb, graded assertiveness, Julian Assange, no blame culture, open disclosure, snitch, Swiss cheese

IMG_4423

In this age of revived nationalism, more and more people are turning to their traits or defining aspects of their culture as a way of bonding and injecting passion into nationhood. Perhaps that is because they have seen this sense of identity progressively eroded over the years through globalisation. I know from my British friends that some of this sentiment bubbled to the surface in Brexit. So what defines us as Australians? Well it is sometimes hard to disaggregate the typically Australian aspects of our culture, given it is essentially a melting pot (our First Australians aside) of our colonial and European past. That said, I’m sure on surveys or Family Feud the most commonly identified aspects that define us as Australians would be things like, mateship, outdoorsy, giving everyone a fair go, neighbourly, laid back, sports mad, non-whinging and my personal favourite we don’t ‘dibber dobb’.

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For my non-Australian readers to ‘dobb’ is to go and tell tales on someone, also known as to rat them out, snitch, squealer, tattletale, weasel, sneak, fink, canary …you get the picture. I have worked in seven countries and with the exception of the Middle East, where they have no particular qualms with this aspect of daily life, all other places I have worked have had the same underlying principle. No-one likes a tattletale it seems. In Australia though, perhaps harking back to our convict past, we are particularly hot in our disdain for the ‘dibber dobber’, the name we attribute not so affectionately to those who turn ‘weasel’. You only have to look around at whistle blowers to realise they never seem to come out of the foray unscathed. Morally intact I am sure, but financially and emotionally they are bruised and a number must be tinged with some regret about what they did. Labelled a ‘dibber dobber’, it is well-nigh impossible to shake that moniker. While admired by many even Julian Assange (the biggest dibber dobber of them all and ironically an Aussie to boot) is loathed by perhaps even more because he exposes stuff.

What happens in the workplace in terms of culture often reflects the meta culture of the country as a whole. With Corporations increasingly acting as States it is no surprise that cultural issues not directly aligned to a business focus e.g. marriage equality, are permeating both culture and policy. I’m sure most workplaces have a whistle blower policy. We do. There is also legislation to back this up, in Queensland known as the Whistleblower Protection Act 1994. Even the title suggests that the dibber dobber will not get an easy ride as the Act tries to forge some protection for them. And they sure need it because our workplaces, as microcosms of society, have a deeply held ethos that you don’t ‘dobb your mates in’. Here the ‘dobbing’ is linked to the other strong cultural trait of ‘mateship’ and as our work colleagues are known as our ‘workmates’ you can begin to see how difficult it is for someone to actually call something out.

A friend of mine gave me a very good example the other day. He runs a business where he came across a situation he wasn’t happy with. On trying to get to the bottom of it, which was a clear breach of their own standard operating procedures, was told by one worker that he had spotted the issue but that he didn’t want to raise the matter given it would be seen as ‘dobbing in’ his workmates and his boss. The potential cost of the mistake was over $50,000 not much short of that individual’s wage. When confronted with this figure he apparently just shrugged and said he couldn’t because he didn’t want to be seen as someone who tattletales on his colleagues. On hearing this it made we wonder how much lost productivity, re-working, and, more alarmingly, injury hangs off the back of a misplaced loyalty that is inculcated in our workplace culture?

As a CEO I, and I am sure the majority of my CEO colleagues, want to know when things aren’t right. We can’t be everywhere and sometimes the view from the top obscures what’s happening on the ground. One of our few defences in this case is having a culture of open disclosure that allows for things to get reported up before they become a real issue. For those who know their safety theory, as a CEO you want to know an unravelling situation well before most of the holes in the Swiss cheese have lined up. We have an open disclosure culture at work but on reflection I could not say hand-on- heart that my own team members would abandon workmate loyalty for near-miss reporting.

There are a number of reasons why team members might remain quiet when they should really speak up. The obvious first one is they do not want to ‘rat out’ their mates. Social interaction in the work environment is for many the significant contributor to workplace enjoyment so it will take quite some degree of concern to overcome this hurdle. Loss of face for self and others is another. No-one wants to be seen, or have their mates be seen as a doofus in the workplace. We spend the majority of our life at work and for many it defines us, so being confronted with a situation where your very competence might be called into question is a good reason to quietly let something slip under the carpet – management none the wiser. Equally, a strong motivator for keeping stumm is for fear of punishment. Using this line of reasoning is more complex as there is a judgment to be made between the consequence of being punished for owning up, versus the punishment if caught out. It’s an easy one really but quite often wrongly calibrated. Managers and supervisors, in my experience, are much more forgiving with self-reporting of mistakes or errors. Some companies have even introduced ‘no blame’ reporting which has, in turn, had its own unintended consequence with a lackadaisical approach to the job given there is little ultimate consequence. A sort of ‘if I mess I just fess’ culture. A ‘my bad’ and move on approach. This is not helpful either.

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To solve this is not an easy matter. First and foremost we need to give our team members the requisite skills to raise a concern. This is the communication tool known as graded assertiveness and I firmly believe it should be taught in schools starting at primary level. Having a vernacular to challenge and raise concerns that potentially addresses the loss of face issue and removes the personality component is essential, not just in business but in life. When dealing with an aggressive or forthright manager when you are less so is a challenge, but learning an escalating vernacular that can be deployed almost in an autonomic way is one means to get around this. Secondly, when someone does raise a matter it is essential that the person who does so is protected. Knowing in the Australian work setting how big a deal this is managers should not take the reporting of a concern so lightly. The temptation to react strongly and ‘nip the problem in the bud’ should on most occasions be avoided without first thinking how the reporter gets protected in the process. In Australia recently we had an example of an individual from India who used a friend’s passport to pass himself off as a Doctor. The truth came to light 11 years later and only after he had left Australia. You can’t tell me that in those 11 years of practice someone somewhere didn’t scratch their heads and ask the question. Perhaps him being a doctor and top of the tree in that work setting was a major factor in this?

It is essential in the workplace to encourage people to report things that don’t feel quite right. Intuition is often the best guide to things being not quite as they should be. So perhaps it’s time to come up with another word for someone who reports issues in the workplace in the interests of the business; one less pejorative. I’m thinking dobber dibber. Imagine the conversation. ‘ I’d rather be a dobber dibber than a dibber dobber’. Only then will we see just how childish this long-held cultural norm is.

The Terminology of Life at the Top

08 Friday Jul 2016

Posted by Burning Manager in Uncategorized

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BOM, Brexit, Bureau of Metereology, Business Insider Australia, CDOs, CEO, CTC, GFC, global financial crisis, Gonski, Kevin 07, Lafarge, Malcolm Turnbull, Pauline Hanson, PM, Prime Minister, S&P, Standard and Poors, The Construction Training Centre

Kevin 07

My Name’s Phil and I’m Here to Help!

 

I’ve been a CEO over 20 years and this week I passed the milestone of 10 years as CEO of the Construction Training Centre. According to Business Insider Australia the average tenure of a CEO is 9.7 years so I’ve managed, just, to scrape over that particular hurdle.

They rather unhelpfully, from my perspective, think the optimal lifespan of a CEO is a mere 4.8 years. Gulp! That’s to suggest I’ve outstayed my welcome by some 5.2 years. They cite three main reasons why CEO’s generally move on being burn out or loss of enthusiasm for the job, external changes in the market where skill set requirements change and when Board’s decide enough is enough. And I get all of that. It’s hard to maintain drive once you emerge from a purple patch. For many the inexorable torrent of KPI achievement gets to the point when alternatives look rosier. Quite often CEO’s transition to not for profits tired by the singularity of the commercial world. Others, and I’d like to think I’m one of them, aim to expand the outcome metric such that there are a range of measures by which one can evaluate their own performance and therefore continue to grow and thrive.

I call these pivots. In the brave new Australian business world, without the ballast of our resources sector in overdrive, we have to look elsewhere to drive economic growth to generate the prosperity that we have become so accustomed to. As a country we need to pivot. This was one of the messages of the Coalition’s not so successful election campaign in the Federal election. At the time of writing, almost a week on, we are still not definitively clear as to who will govern the country. If you think the lifespan of a company CEO is short, spare a thought for the CEO of our country; the Prime Minister.

Over the last five years we have had something like five Prime Ministers. There are all sorts of performance metrics to determine whether a Prime Minster is successful but it appears to me we only look at a few when making this judgment. The first is the country’s financial performance which in a globalised world is not really in the full control of the government anyway. In CEO terms this is the state of the balance sheet and importantly, in the short-time horizon thinking that besets both Boards and voters, the profit and loss. For Prime Ministers there is the other key measure which is the opinion poll measuring the most nebulous of characteristics – popularity? Be warned. Popularity can easily beget populism.

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With the rise of Trump, Lafarge, Xenophon, Hanson et al serious political commentators and writers are warning of the danger of the tide of populism that is entering the world of politics. Populism can mean many things to many people. To some it’s having their local representative totally aligned to their own views and in these cases they regard their politician as ‘on the money’ and ‘in touch’. One of the worst criticisms that can be levelled against a politician is that he or she is out of touch. Populism though for me is a kind of giddy political surfing where the incumbent politician rides a number of waves hoping always to catch the best ride to take them safely to the beach. The only grasp you get of their underpinning values, beliefs and thought processes is the particular fad (wave) of the day.

So how should we measure a politician’s success? One logical way is to define what the criteria for success is from the outset. If we carry the hypothesis forward that the PM is the CEO of the country then we might just be able to use the essential success factors of a CEO as a guide. Getting an overall consensus of what makes a successful CEO is no easy feat but there is a consensus of sorts that suggest the CEO only needs to do three things:

  • Set the overall vision and strategy and communicates this to all stakeholders;
  • Get the best skilled people together to make the vision a reality; and
  • Make sure there’s enough cash in the bank.

Applying this to our recent election then….

The message from Malcolm Turnbull was one of jobs and growth. The rhetoric of this was repeated in a mantra-like fashion but what wasn’t clear to many, I would suggest, is what this means to the individual in the street. Underpinning all of this is this vague concept of innovation. Innovation as a buzz word caught on quicker than a Medicare text alert. As an aside I put myself in Turnbull’s shoes when the Medicare ‘text’ scare emerged. He never really properly neutralised this attack. I would have issued a Coalition Bureau of Meteorology (BOM) storm warning text the morning of the polling saying something like. ‘BOM Beware- dangerous tropical cyclone Hanson on the horizon’. So on the count of clear message Turnbull, the supposed great communicator, was found wanting.

Getting the best skilled people to make the vision a reality comes down to how we educate and train our people to confront what’s coming. The challenges are many and while, yes, it’s an exciting time to be an Australian I think it’s also a scary time for a young school leaver or graduate (from Uni or TAFE) to firstly choose a career path that has some degree of protection from automation and secondly to be able to ply your ‘trade’ in a meaningful job in your field of study. This to me was the missing opportunity in the campaign. Labor focused on education only with respect to Gonski which I’m still convinced very few Australians (me being one of them) understand the detail of, or rationale behind. We need to radically address education and training across all spectrums of pre-school, primary, secondary, VET and tertiary if we want to compete globally. This is an even better legacy to leave behind than a huge surplus which we partly squandered on school halls. Perhaps our surplus in the Rudd years would have better spent on soft education structures than physical ones.

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The final measure is cash in the bank. We have had a shot across the bows this week from Standard and Poors who have put us on credit watch suggesting that our much treasured AAA credit rating is in jeopardy if we don’t start addressing our growing deficit. For me this is a simplistic view and I have complete disdain for these rating agencies. We should always remember that they gave AAA credit ratings to bundled collateralised debt obligations (CDOs) that in reality were of junk bond value. And we all know where that led…that’s right the GFC.

Final

As I reflect back on my ten years I have achieved consistently across the three key success criteria. For me though that is no real measure of success. Those three are a given that any CEO is expected to achieve and therefore I don’t think you can really judge your time with any sense of pride if those has been your sole outcome. For a PM one key measure surely must be the degree of community cohesion. This is important right now with elements in the Senate with an agenda likely to cause social division. As a CEO this translates into how well the team is gelling to get results. Perhaps the most important test is how well are those for whom you have stewardship faring. For a PM that is how content and cohesive is the community. For the CEO this translates to the degree of well-being expressed by the work team. Our recent staff survey would suggest that we are in pretty good shape. For me the whole-hearted employee is what we should strive for. Achieve this and you just know your customers will be taken care of. All Turnbull needs to do now, on the eve of his first term as an elected PM, is get his team to work as one, sharpen his message, get it out there, bring us back to surplus and make us all happier and content with the way things are. Good luck with all that. With 20 years under my belt, and to quote a fellow Queenslander, my name’s Phil and I’m here to help!

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