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Why FMCG CEOs Are Being Replaced Faster Than Ever

Mon, 15 Dec 2025 02:26:35 GMT

And What It Means for Australia’s Next Wave of Executive Hires

A Leadership Shake-Up

The average tenure of a CEO in Australia’s FMCG sector is falling, and fast. Most local CEOs expect to stay in their role for five years or less, and 37% have been in their position for under two years

(Source: PwC Australia CEO Survey, https://www.pwc.com.au/ceo-agenda/ceo-survey.html ).

The story is even starker for CFOs in consumer goods, who now average just 3.9 years in role
(Source: Spencer Stuart, https://www.spencerstuart.com/research-and-insight/ascending-to-the-top-more-australian-cfos-becoming-ceo ).

Pressure Builds, Margins Thin

Australia’s consumer goods retailing sector is feeling the pinch. While total revenue reached $247 billion in 2023, growth has slowed to a compound annual rate of just 2.9%

(Source: Consult Group, https://consultgroup.co/top-fmcg-statistics-you-need-to-know-for-2025/ ).

Woolworths recently reported a 21% drop in net profit — down to $739 million — citing inflation and labour disruptions as key culprits (Source: The Guardian, https://www.theguardian.com/business/2025/feb/26/woolworths-profit-slumps-as-cost-of-living-drives-shoppers-elsewhere ).

AI Isn’t the Future, It’s Now

Australian retail and FMCG businesses are embracing AI to survive and differentiate.
91% of businesses across Australia and New Zealand are actively investing in generative AI to improve efficiency and customer engagement
(Source: Retail Doctor Group, https://www.retaildoctor.com.au/rdg-blog/ai-in-australian-retail-2024-sentiment/ ).

Yet, only 35% of SMEs have adopted it, leaving a large gap in capability and readiness

(Source: Department of Industry, https://www.industry.gov.au/news/exploring-ai-adoption-australian-businesses ).

The Pricing Game Has Changed

Australian consumers are demanding value. 95% are open to buying private-label products, with 68% citing cost as the deciding factor

(Source: Shop Association Australia, https://www.shopassociation.org.au/news/research-reveals-rise-private-labels-amid-shifting-consumer-priorities ).

In the UK, 66% of consumers say store-brand products meet their needs as well as branded ones, and 38% plan to never switch back

(Source: EY Future Consumer Index, https://www.ey.com/en_gl/newsroom/2024/07/ey-future-consumer-index-consumers-return-to-physical-stores-for-personal-service-even-as-ai-and-tech-revolutionize-online-shopping ).

Supply Chain: Still the Weak Link

Digital transformation and localisation have become boardroom priorities.
But a shortage of skilled supply chain professionals is limiting how fast FMCG companies can adopt AI and digital tools

(Source: AFGC, https://afgc.org.au/wp-content/uploads/2025/02/AFGC-x-Argon-Co-Supply-Chain-Survey-Report-2025.pdf ).

What It Means for Hiring

Boards aren’t just hiring marketers. They’re hiring tacticians who can play chess with pricing, supply chain risk, and digital transformation.

Executive roles now demand AI fluency, commercial agility, and a readiness to lead through volatility.

The brief has changed: it’s no longer about who can run the business, it’s about who can rebuild it while running it.

Where the Best Executives Are Really Going: The Unspoken Truths Behind FMCG’s Leadership Hiring Crisis

Wed, 26 Nov 2025 19:01:05 GMT

Executives Aren’t Looking, and That’s Exactly Why You’re Not Finding Them

The best executive candidates aren’t scrolling job boards. They’re not updating their LinkedIn profiles. They’re doing their jobs—quietly, effectively, and often invisibly.

In Australia, 57% of professionals are passive jobseekers. Globally, 85% of jobs are filled through networking, not applications . Which means the leaders you need most? They’re only reachable through trusted conversations.

The companies winning the best people aren’t hiring reactively. They’re building credibility long before a vacancy emerges. If you're waiting until you're hiring to tell your story, you're already too late.

Pay Is the Starting Point, But It's Not the Deciding Factor

Yes, money still matters. CEO pay in Australia rose 7% last year to $2.87M . In FMCG, Sales, Marketing and Supply Chain Directors often sit between $250K–$350K, with STI bonuses between 25–35% . Hays Recruitment

But today’s executives aren’t moving for the money—they’re moving despite it. Leaders are leaving well-paid roles because of toxic cultures, unclear mandates, or boardroom dysfunction. They’re rejecting ‘opportunities’ that come wrapped in risk.

Remuneration still needs to be competitive—but don’t mistake high pay for high attraction. If your culture’s broken, it’s not a salary issue. It’s a credibility issue.

The EVP Credibility Gap: Overpromising, Underdelivering, and Losing Trust

The modern EVP has become a corporate echo chamber. ‘Flexible.’ ‘Purpose-led.’ ‘Empowered.’ And yet, behind the scenes, many leaders report feeling disillusioned. Internal data from Gallup shows trust in senior leadership is the top driver of executive turnover—and one of the fastest eroded.

You can’t market a high-performing leadership environment if your leaders are burnt out, disconnected, or cycling through at 18-month intervals. Executives now audit your internal leadership dynamic before they ever speak to a recruiter.

You’re not just competing on benefits. You’re competing on internal consistency—and many companies are failing that test.

Succession Theatre: The Illusion of Planning and the Reality of Panic

The average CEO tenure in Australia is now just 4.7 years . CFOs average 4.6 . And according to PwC, only 13% of companies have a defined successor in place. eci.net.au

That’s not a pipeline. That’s a risk register. And executives know it.

Succession is now a visibility issue. Executives evaluating your organisation want to know who’s next—what the pathway is, how leaders are developed, and whether they’ll be part of something with continuity.

If succession is still buried in HR or 'under discussion', it’s not a plan. It’s an exposure.

Why Internal Mobility Isn’t Working—and Executives Are Leaving Because of It

Australia’s internal promotion rates among mid-senior execs have stagnated since 2022 . The reason? Lack of clarity, poor mentoring, and misaligned performance expectations.

When leaders don’t see a path up, they create a path out. And ironically, many companies lose top internal candidates only to hire someone externally for the exact same role—at a 25–30% cost premium.

Executives aren’t expecting handouts. But they are expecting transparency. If your high-performers can’t see the next role—or the sponsor who believes they can do it—they’ll stop investing. And start leaving.

You Don’t Build a Talent Pipeline When You’re Hiring. You Build It When You’re Not.

In FMCG, timing kills opportunity. Executive hiring isn’t about reaching people when you’re ready. It’s about being known, respected, and top-of-mind when they are.

Most leadership roles are filled before they’re ever advertised—sometimes before they even exist. Strong employer brands don’t recruit reactively. They build reputation capital consistently, through:

Leader visibility
Board-level stability
Industry credibility

By the time you post a role, your ideal candidate has already formed their opinion. You either show up as a career-defining opportunity—or just another search brief to decline.

Who’s Getting This Right (and Why It Matters)

Companies like L’Oréal ANZ and Coles have begun reshaping their executive visibility. L’Oréal’s investment in gender equity and succession transparency has made it one of the most desirable FMCG brands to work for. Coles’ ‘People & Culture’ overhaul has earned recognition for its leadership mobility and senior female appointments.

These aren’t just HR wins. They’re market signals. Executives want to work with leadership teams who are thinking five years ahead, not firefighting quarter to quarter.

If your leadership brand doesn’t speak for itself, your headcount will.

FMCG Doesn’t Have a Talent Problem. It Has a Leadership Signal Problem.

Executives today are deliberate. They choose leaders—not companies. They chase clarity, not compensation. They follow the signal—not the job ad.

If your senior team is invisible, if your succession plan is murky, if your EVP is performative, or if your best people are walking out the door—it’s not a hiring issue. It’s a leadership credibility issue. And in a market this competitive, credibility is everything.

Toxic Workplaces and Executive Burnout in FMCG: The Hidden Costs of Poor Leadership

Thu, 23 Oct 2025 01:56:51 GMT

The Silent Business Risk FMCG Can No Longer Ignore

Speed. Scale. Pressure. Australia’s FMCG sector has always demanded more—faster. But while supply chains are tracked to the second and marketing spend is modelled down to the decimal, one cost still goes unchecked: toxic workplace culture.

More than half of Australian workers report experiencing a toxic work environment. Low psychological safety costs Australian businesses $6 billion annually . And toxic leadership is estimated to cost the economy $2.2 billion every year in lost productivity.

Despite this, only 25% of companies actively measure their culture. That disconnect is costing the FMCG sector billions—not just in output, but in innovation, retention, and brand reputation.

Executive Turnover: A Strategy Failure Disguised as Attrition

In 2024, 8% of the workforce changed employers . In FMCG, that figure was higher—particularly at senior levels.

Replacing an executive costs up to 2x their salary . But the hidden cost is strategic drift. High churn among senior leaders disrupts growth, stalls decision-making, and undermines credibility with investors and staff.

It’s not just salary expectations driving exits—it’s burnout. 74% of employees say they plan to leave once economic conditions improve.

If you’re seeing leadership churn, don’t blame the market. Ask: what’s happening inside your business that makes people want to leave?
[Sources: Ai Group, NAB Behavioural Insight Report, Forbes]

Toxic Cultures Don’t Just Hurt Employees—They Damage Brands

A toxic culture isn’t just an HR problem—it’s a brand risk. Country Road Group’s bullying scandal led to a 66% drop in adjusted operating profit and major restructuring.

Consumers are paying attention. Companies with poor cultures see up to 18 months of declining customer satisfaction. Ethical treatment of staff now factors into purchase decisions and brand loyalty—especially among Gen Z and millennial consumers.

You can’t sell ethical consumption and mistreat your people. Not anymore.

Burnout Is a Business Model Problem, Not an Individual Weakness

Burnout in FMCG isn’t limited to frontline staff. Senior leaders are among the most at risk —and the least likely to get support.

Fear-driven leadership and relentless KPI pressure create environments where productivity falls by 20–30% , absenteeism rises sharply, and innovation stalls. These aren’t individual performance issues—they’re systemic leadership failures.

Research now links sustained burnout to measurable losses in output, creativity, and engagement across industries. When a culture rewards endurance over wellbeing, the human cost becomes a financial one.

If your most talented people are exhausted, disengaged, or disappearing, the problem isn’t them. It’s you .

Culture Is Strategy. Treat It That Way.

Executives need to stop seeing culture as something to be ‘managed’ by HR and start treating it like any other line item on the balance sheet.

Toxic environments are expensive. High-performance cultures are assets. Yet most leaders assume their culture is healthy— 84% believe so —while only 60% of their staff agree .

That’s not alignment. That’s delusion.

And ESG-minded investors are watching closely. Multiple investor-surveys suggest a large majority of institutional investors now factor human capital/culture in value assessments.

If you're not measuring it, monitoring it, or improving it—you’re not leading. In FMCG, where speed and agility are everything, a weak culture isn’t just a liability. It’s a growth ceiling.

The Gender Crisis in Australian FMCG Leadership: Why Equality Isn’t Just a Moral Imperative - It’s a Commercial One

Wed, 24 Sep 2025 21:00:00 GMT

A Profit Crisis Disguised as a Diversity Problem

Australia’s FMCG industry doesn’t have a diversity issue—it has a profit issue. And the two are inextricably linked.

Despite years of rhetoric around inclusion and gender equity, only 9% of FMCG CEOs are women. Just 33% of executive leadership team (ELT) roles are held by women. And the CEO pipeline—COO, CFO, Group Executive roles—remains 82% male . This is far behind sectors like finance and tech, where some progress—however incremental—is at least measurable.

This isn’t cultural lag. It’s a strategic failure. Because the data is unequivocal: companies with gender-diverse leadership perform better financially, innovate faster, and retain talent more effectively.

The Numbers We Can’t Afford to Ignore

In 2023, one in four new CEO appointments in FMCG went to women. In 2024, that figure has halved to just 12.5%.

Women in FMCG earn, on average, $28,425 less than men. Even when they make it to the top, female CEOs are paid $158,632 less than their male counterparts.

Turnover is costly. Replacing an executive costs 213% of their annual salary, according to widely accepted global research. But far more damaging is the talent you never engage in the first place.

The Customer Disconnect

Women drive 75–85% of consumer purchasing decisions in Australia—particularly in household, personal care, and food categories. Yet fewer than 1 in 10 FMCG CEOs are women.

That’s a glaring disconnect. In an industry so dependent on brand loyalty, customer insight, and emotional intelligence, how can boards justify a leadership structure that fails to reflect the very people they serve?

Four Forces Blocking Progress

1. Lack of Formal Gender Targets

Only 40% of ASX300 companies have adopted 40:40:20 targets. Those that do are 3.6x more likely to achieve gender parity at senior levels.

2. Exclusion from CEO Pipelines
82% of COO, CFO, and Group Executive roles are still held by men—effectively blocking the pathway to CEO.

3. Inflexible Career Design
Women over 35 are twice as likely to work part-time. 38% of working mothers say they would reduce hours or leave their role entirely if flexibility was withdrawn.

4. Cultural Backlash
Public resistance to diversity programs is rising. In 2024, 54% of Australians said gender equality initiatives had “gone far enough,” up from 41% in 2019.

Sources: CEW Census 2024, IPSOS Gender Equality Report 2024

Boards Must Lead, And Be Held Accountable

Despite growing scrutiny, many FMCG boards remain largely male. As of 2024, just 19.3% of ASX-listed boards have a female Chair, and only 3.4% have a female CEO .

It’s no longer acceptable for boards to view gender diversity as a ‘HR issue.’ It’s a governance imperative—and a reputational risk. Investors are increasingly demanding visibility into ESG credentials, including diversity. And gender-balanced boards correlate strongly with long-term value creation.

The Innovation Dividend

Companies with female CEOs see a 5% uplift in market value —worth $79.6 million per company. Gender-diverse teams generate 38% more innovation revenue, and are 25% more likely to financially outperform their peers.

Unilever, for example, achieved gender balance across management globally by 2021—proof that even complex, decentralised FMCG giants can lead by example.

The question isn’t whether diversity works. The data proves it. The only question is why the Australian FMCG sector still treats it like a side project.

What Needs to Change Now

FMCG companies must:

Set measurable gender targets—and tie them to executive KPIs.
Rethink how executive pipelines are built and who gets visibility.
Make flexibility a business standard—not a working-mother concession.
Publicly report leadership demographics and gender pay metrics.
Champion the commercial value of gender equality—not just the optics.

This isn’t just a fairness issue. It’s a question of who gets to lead Australia’s economic future—and who gets left behind.

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The $92.3 Billion Question: Can Leadership Bridge the M&A Gap in Australian FMCG?

Mon, 18 Aug 2025 11:49:15 GMT

A Merger Boom, But At What Cost?

Australian FMCG is undergoing the biggest wave of consolidation in over a decade. In 2024 alone, 996 deals were completed, totalling US$92.3 billion — a leap in both volume and value compared to 2023.

Lower interest rates, falling inflation, and relative geopolitical stability have created ideal M&A conditions. Private capital reserves reached $37 billion last year, and the appetite for acquisition is fierce. But behind the headlines is a more complex reality: most mergers fail to deliver value. And in FMCG, where integration is fast, complex, and customer-facing, leadership—not leverage—is the decisive factor.

Why FMCG Leaders Are Going All-In

Market consolidation: Chemist Warehouse’s $32 billion merger with Sigma Healthcare in 2025 formed the 22nd largest company on the ASX, uniting major pharmacy banners under one strategic banner.
Portfolio diversification: Retail Food Group’s long-term partnership with Firehouse Subs brings 165 US-style stores into Australia, targeting the $1.7B sandwich segment.
Efficiency plays: The 2024 three-way merger of SPC, The Original Juice Co, and Nature One created a $400 million powerhouse focused on streamlining cost bases in response to rising energy, logistics, and wage costs.

Where the Synergies Fall Apart

Globally, up to 75% of executives leave within three years of a merger. Integration timelines blow out by 18 months. Productivity drops. Customers leave. Cultures clash.

Australian firms are not immune. Case studies in banking and food manufacturing show that unless cultural and operational integration is led from the top, the deal thesis begins to unravel.

During the Westpac-St.George merger , staff turnover fell from 14% to 6% — not by chance, but because senior leaders invested heavily in communication, transparency, and cultural planning.

Leadership Is the Post-Merger Differentiator

A study of five Australian FMCG M&As found that financial performance improved post-deal — but only where executive leadership actively drove the integration process.

Effective post-merger leaders focus on:

Strategic alignment between boards and operational teams
Retention of key mid-level and site-level talent
Integration of IT, supply chain, and reporting systems
Real-time cultural monitoring and responsiveness

In contrast, integration led solely by consultants or buried under functional leadership creates blind spots — especially around speed, accountability, and workforce confidence.

Regulation Is Coming. The Clock Is Ticking.

In 2024, the Australian government announced major reforms to competition law. The ACCC will implement a single mandatory merger regime from 2026 — one designed to tighten scrutiny on retail and FMCG consolidation.

Deals involving dominant suppliers or retail networks will face more intensive review — not just for pricing pressure, but for structural market control. Executive teams need to get ahead of this scrutiny by building clear, proactive integration narratives from day one.

The Future of M&A Belongs to the Integrators

Australia’s FMCG leaders have $92.3 billion worth of deals behind them — and $37 billion more potentially in play. The question isn’t whether they can close. It’s whether they can integrate.

The winners will:

Deploy leadership at every level — not just the C-suite
Align boards, investors, and operations around a single transformation narrative
Integrate culture, systems, and structure simultaneously — not sequentially

The losers? They’ll confuse cost-cutting with strategy, let culture become someone else’s job, and assume the spreadsheet takes care of itself.

FMCG doesn’t need more dealmakers. It needs more integrators.

That’s the $92.3 billion question.

Executive Exodus: How FMCG Leadership Gaps Are Threatening Australia’s Future

John@elr.net.au (John Elliott) — Fri, 18 Jul 2025 05:39:52 GMT

Australia’s FMCG sector is confronting a leadership crisis. CEO turnover is accelerating, succession pipelines are underdeveloped, and the cost of securing top executive talent is escalating. In a landscape marked by inflation, technological disruption, and shifting consumer behaviours, the absence of seasoned leadership could jeopardise the industry's resilience and growth.

The Turnover Tsunami

In 2024, the ASX 200 witnessed 27 CEO departures , highlighting a significant churn at the top echelons of corporate Australia. Notably, 22% of these departures were part of planned succession processes, indicating a growing trend towards proactive leadership transitions.

This surge in CEO turnover is largely driven by market volatility and increased scrutiny of executive performance. The evolving demands of the FMCG sector, including digital transformation and sustainability initiatives, require leaders who can navigate complex challenges and drive innovation.

Succession Planning Shortfalls

Despite the evident need for robust succession strategies, many organisations remain unprepared. A recent survey revealed that only 13% of firms are actively working on succession planning, while a mere 17% have a successor already in place.

This lack of preparation can lead to leadership vacuums, disrupting strategic continuity and placing immense pressure on incoming leaders to deliver immediate results without the benefit of a gradual transition.

The Cost of Leadership Vacuums

Leadership gaps are more than just organisational inconveniences; they have tangible financial implications. The absence of decisive leadership can stall critical projects, erode stakeholder confidence, and ultimately impact the bottom line. In an industry where margins are already under pressure, the cost of indecision is a luxury few can afford.

Moreover, the competition for top executive talent has intensified, leading to increased remuneration packages. For instance, in the FMCG sector, CEOs of companies with revenues exceeding $1 billion have seen total cash compensation averaging $871,949 , reflecting the premium placed on experienced leadership.

The Talent Drought

Compounding the issue is a shrinking pool of qualified candidates ready to step into top roles. Factors contributing to this talent drought include:

Experience Gaps: Many potential leaders lack the diverse experience required to navigate the complexities of modern FMCG operations.
Retention Challenges: High-performing individuals are increasingly lured by opportunities in more dynamic sectors, leaving a void in FMCG leadership pipelines.
Inadequate Development Programs: Organisations have underinvested in leadership development, resulting in a lack of internal candidates prepared for advancement.

The Australian corporate leadership training market, valued at USD 1.43 billion in 2024 , is projected to grow significantly, indicating a recognition of the need to invest in developing future leaders.

Bridging the Gap

To address this crisis, FMCG companies must adopt a proactive approach:

Strategic Succession Planning: Develop robust pipelines by identifying and nurturing talent well before vacancies arise.
Leadership Development: Invest in comprehensive programs that equip potential leaders with the skills and experiences necessary for top roles.
Retention Strategies: Create compelling value propositions to retain high-potential employees, including clear career progression paths and competitive incentives.

Embracing a New Leadership Paradigm

The challenges facing Australia's FMCG sector demand a reevaluation of traditional leadership models. Future leaders must be:

Agile: Capable of navigating rapid market changes and consumer trends.
Tech-Savvy: Proficient in leveraging technology to drive innovation and efficiency.
Consumer-Centric: Deeply attuned to evolving consumer needs and preferences.

By embracing this new leadership paradigm, FMCG companies can not only weather the current storm but also position themselves for sustained success in an increasingly competitive landscape.

The Quiet Collapse of Australian Vegetable Farming

John@elr.net.au (John Elliott) — Thu, 26 Jun 2025 05:12:43 GMT

You don’t hear about it on the nightly news.

There’s no breaking story. No panic. No protests.

Just rows of vegetables being pulled out of the ground with no plan to replant.
Just farmers who no longer believe there’s a future for them here.
Just quiet decisions — to sell, to walk away, to stop.

And if you ask around the industry, they’ll tell you the same thing: It’s not just one bad season. It’s a slow death by a thousand margins.

1 in 3 growers are preparing to leaveIn September 2024, AUSVEG released a national sentiment report with a statistic that should have set off alarms in every capital city: 34% of Australian vegetable growers were considering exiting the industry in the next 12 months.

Another one-third said they’d leave if offered a fair price for their farm. Source: AUSVEG Industry Sentiment Report 2024 (PDF)

These aren’t abstract hypotheticals. These are real decisions, already in motion.
For many, it’s not about profitability anymore, it’s about survival.

This isn’t burnout. It’s entrapment.

Behind the numbers are people whose entire identity is tied to a profession that no longer feeds them.

Many are asset-rich but cash-poor. They own the land. But the land owns them back.

Selling means walking away from decades of history. Staying means bleeding capital, month by month, in a system where working harder delivers less. Every year, input costs rise, fuel, fertiliser, compliance. But the farmgate price doesn’t move. Or worse, it drops.

Retail World Magazine reports that even though national vegetable production increased 3% in 2023–24, the total farmgate value fell by $140 million. Growers produced more and earned less.

That’s not a market. That’s a trap.

What no one wants to say aloud

The truth is this: many growers are only staying because they can’t leave.

If you’re deep in debt, if your farm is tied to multi-generational ownership, if you’ve invested everything in equipment, infrastructure, or land access, walking away isn’t easy. It’s a last resort.

So instead, you stay. You cut your hours. Delay maintenance. Avoid upgrades. Cancel the next round of planting.
You wait for something to shift, interest rates, weather, prices and you pretend that waiting is strategy.

According to the latest fruitnet.com survey, over 50% of vegetable growers say they’re financially worse off than a year ago. And nearly 40% expect conditions to deteriorate further.

This isn’t about optimism or resilience.
It’s about dignity and the quiet erosion of it.

Supermarkets won’t save them, and they never planned to

In the current model, supermarket pricing doesn’t reflect real-world farm economics.

Retailers demand year-round consistency, aesthetic perfection, and lower prices.
They don’t absorb rising input costs, they externalise them.
They offer promotions funded not by their marketing budgets, but by the growers’ margins.

Farmers take the risk.
Retailers take the profit.

And because the power imbalance is so deeply entrenched, there’s no real negotiation, just quiet coercion dressed up as "category planning."

Let’s talk about what’s actually broken

This isn’t just a market failure. It’s a policy failure.

Australia’s horticulture system has been built on:

Decades of deregulated wholesale markets
Lack of collective bargaining power for growers
Retailer consolidation that has created a virtual duopoly
Export-focused incentives that bypass smaller domestic producers

There’s no meaningful floor price for key produce lines. No national enforcement of fair dealing. No public database that links supermarket shelf price to farmgate return.

Which means growers, like James, can be driven into loss-making supply contracts without ever seeing the true economics of their product downstream.

But the real silence? It’s from consumers.

Here’s what no one wants to admit:

We say we care about “buying local.”
We say we value the farmer’s role.
We share those viral posts about strawberries going unsold or milk prices being unfair. And then we complain about a $4 lettuce.

We opt for the cheapest bag of carrots.
We walk past the "imperfect" produce bin.
We frown at the cost of organic and click “Add to Cart” on whatever’s half price.

We’re not just bystanders.
We’re part of the equation.

What happens when the growers go?

At first, very little.

Supermarkets will find substitutes. Importers will fill gaps. Large agribusinesses will expand into spaces vacated by smaller players. Prices will stay low, until they don’t.

But over time, we’ll notice:

Produce that travels further and lasts less.
Fewer independent growers at farmer’s markets.
Entire regions losing their growing identity.
National food security becoming a campaign promise instead of a reality.

And when the climate throws something serious at us, drought, flood, global supply shock, we’ll realise how little resilience we’ve preserved.

So what do we do?

We start by telling the truth.

Australia is not food secure. Not if 1 in 3 growers are planning to exit.
The market isn’t working. Not when prices rise at the shelf and fall at the farmgate.
The solution isn’t scale. It’s fairness, visibility, and rebalancing power.

That means:

Mandating cost-reflective contracts between retailers and suppliers
Enabling collective bargaining rights for growers
Building transparent data systems linking production costs to consumer prices
Introducing transition finance for smaller producers navigating reform and climate pressure
And holding supermarkets publicly accountable for margin extraction

But more than anything, it means recognising what we’re losing, before it's gone.

Final word

If you ate a vegetable today, it likely came from someone who’s considered giving up in the past year.

Not because they don’t care.
But because caring doesn’t pay.

This isn’t about nostalgia.
It’s about sovereignty, over what we eat, how we grow it, and who gets to stay in the system.

Because the next time you see rows of green stretching to the horizon, you might want to ask:

How many of these fields are already planning their last harvest?

Recession Is Coming for FMCG and Most Leaders Are Pretending It’s Not

John@elr.net.au (John Elliott) — Fri, 20 Jun 2025 04:52:33 GMT

If you're leading an FMCG or food manufacturing business right now, you're probably still talking about growth.

Your board might be chasing headcount approvals. Your marketing team’s pitching a new brand campaign. Your category team’s assuming spend will bounce.

But your customer?

They’ve already moved on. Quietly. Like they always do.

The illusion of resilience

FMCG has always felt protected, “essential” by nature. People still eat, wash, shop. It’s easy to assume downturns pass around us, not through us.

But this isn’t 2020. Recessions in 2025 won’t look like lockdowns. They’ll look like volume drops that no promo can fix. Shrinking margins on products that no longer carry their premium. Quiet shelf deletions you weren’t warned about.

The data’s already there. According to the Australian Bureau of Statistics, consumer spending is slowing in real terms , even as inflation eases. The Reserve Bank confirmed in May: household consumption remains subdued amid weak real income growth . And over 80% of Australians have cut back on discretionary food spending , according to Finder. They’re still shopping, just not like they used to.

A managing director at a national food manufacturer told me recently:

“We won a new product listing in April. By July, it was marked for deletion. The velocity wasn’t there, but neither was the shopper. We’d forecasted like 2022 never ended. Rookie mistake.”

That one stuck with me. Because I’ve heard it before, just in different words.

Growth thinking in a shrinking market

Despite clear headwinds, many FMCG companies are still chasing growth-centric hires, brand, commercial, sales.

But recessions don’t reward momentum. They reward discipline. They reward slowness. They reward the uncomfortable.

Miller Leith’s 2024 FMCG & Retail Insights Report showed less than 20% of employers are actively hiring in supply chain, finance, or transformation, the roles that stabilise companies in downturns. Commercial hiring still dominates.

KPMG’s Disruption Decoded report found 52% of private company leaders were “very concerned” about retaining critical talent, but only 27% had changed workforce strategy to reflect it (KPMG).

In short: everyone’s worried, but no one’s moving.

What retailers won’t tell you

Retailers look stable. Supermarkets are booking profit. But that strength? It’s downstream pain.

Small-to-mid-tier brands are being squeezed on funding, shelf terms, and promotional ROI. According to IRI, trade spend rose 9.7% YoY in 2024, and over 30% of promotions delivered negative ROI .

But it’s not just numbers. It’s about silence.
No one says: "You're about to lose that listing."
No one says: "We’re expanding private label next quarter."

You feel it only when it’s too late. Private label is climbing. Fast. In multiple categories. ( IRI Trends ). And when shoppers make that switch, they rarely return.

The truth no one wants to say aloud

If a recession hits in 2025, it won’t catch leaders off guard.

It’ll catch them mid-denial.

Because most boards are still clinging to growth assumptions like nothing’s changed. They’re approving spend like it’s 2022. Hiring for upside. Ignoring erosion.

One COO recently said: “Our board was still using 2021 volume baselines in April. I had to fight just to model in a negative scenario.”

That’s not prudence. That’s negligence.

What brave leadership looks like now

The best CEOs aren’t hopeful. They’re ready.

They’re planning for contraction. Not just the numbers, the sentiment.

They’re asking:

What if our #1 product goes backwards for two straight quarters?
What if our supplier folds?
What if our category dies, and no one wants to say it out loud?

They’re keeping talent who’ve lived through downturns. They’re protecting margin like it’s oxygen. They’re not waiting for perfect clarity. Just enough to move. Because this isn’t a quarter to watch. It’s a moment to act.

Final word

You don’t need a bigger forecast.

You need to decide whether you’re leading for the market you hope is coming, or the one your customer is already living in.

Because if you’re not planning for contraction, then someone else is.

And they’ll be the ones left standing.

Your Culture Report Won’t Show You This

John@elr.net.au (John Elliott) — Fri, 06 Jun 2025 05:22:39 GMT

On paper, they were fully resourced.

No complaints logged. No formal red flags. Delivery metrics holding steady.

But behind closed doors, the signs were there.

Delays. Fatigue. Silence in meetings where pushback used to live. And a growing sense that key people were leaning out, emotionally, if not yet physically.

When the cracks finally showed, the conclusion was predictable: “We need more people.”

But that wasn’t the real problem.

The problem was trust.

And most organisations never see it until it’s too late.

The Hidden Cost of Disengagement

In Gallup’s 2023 global workplace report , only 23% of employees worldwide reported being actively engaged at work. A staggering 59% identified as “quiet quitting”, psychologically detached, going through the motions, doing only what their job description demands.

Source: Gallup Global Workplace Report 2023

Disengagement is expensive. But it’s also quiet. It doesn’t show up on a balance sheet. It doesn’t send a Slack message. Disengagement isn’t new, just silenced.

And in executive teams, it looks different.

It looks like polite agreement in strategy meetings.

It looks like leaders shielding their teams from unrealistic demands, instead of confronting the system causing them.

It looks like performance metrics still being met… while people emotionally check out.

The issue isn’t always capability. It’s safety. Psychological, political, and professional.

Many senior leaders don’t raise concerns, not because the problem isn’t real, but because they don’t believe they’ll be heard, supported, or protected if they do.

And this is where the failure begins.

The Leadership Lie No One Talks About

We talk a lot about leadership capability. About experience, commercial acumen, execution strength.

But we don’t talk enough about context.

Every leadership hire walks into a culture they didn’t create. They inherit unwritten rules, quiet alliances, and legacy power structures.

If those dynamics are broken, or if trust is fractured at the top, no amount of capability will compensate.

According to a 2022 Deloitte mid-market survey, 64% of executives said culture was their top strategic priority. But only 27% said they actually measured it in a meaningful way.

We say culture matters. But we rarely structure around it. And so new leaders walk in with pressure to perform, but little real insight into what the role will cost them emotionally, politically, or personally.

We Don’t Hire for Trust. And It Shows.

In executive search, the conversation is often dominated by pedigree and “fit.”

But fit is often a euphemism for sameness. And sameness doesn't build trust, it maintains comfort.

We rarely ask:

Does this leader know how to build trust vertically and horizontally?
Can they operate in a low-trust environment without becoming complicit?
Will they challenge inherited silence, or unconsciously uphold it?

Instead, we hire for confidence and clarity, traits that often mask what’s broken, rather than reveal it.

And when those hires fail? We call it a mismatch. Or we cite the usual: “lack of alignment,” “wasn’t the right time,” “they didn’t land well with the team.”

But the truth is often uglier: They were never set up to succeed. And no one told them until it was too late.

The Cultural Infrastructure Is Missing

One of the most damaging myths in leadership hiring is that great leaders will “make it work.”

That if they’re tough enough, experienced enough, skilled enough, they’ll overcome any organisational dysfunction.

But high-performance isn’t just personal. It’s systemic.

It requires psychological safety. A clear mandate. The backing to make hard decisions. The freedom to speak the truth before it becomes a PR problem.

When that infrastructure isn’t there, when the real power dynamics are unspoken, good leaders stop speaking too.

And the silence spreads.

What Trust Breakdown Really Looks Like

Often, the signs of a trust breakdown don’t show up in dramatic ways. They surface subtly in patterns of underperformance that are easy to misread or excuse.

You start to notice project delays, but no one flags the root cause. Teams keep things moving, quietly compensating for the bottlenecks rather than surfacing them. Not because they’re careless, but because they’ve learned that early honesty doesn’t always earn support.

New leaders hesitate to make bold calls. Not because they lack conviction, but because the last time they did, they were left exposed.

Board reports look flawless. Metrics track nicely. But spend five minutes on the floor, and the energy tells a different story.

These are not resource issues. They’re relationship issues.

And the data backs it.

According to Gallup’s 2023 State of the Global Workplace report , just 23% of employees worldwide are actively engaged. Worse, around 60% are “quiet quitting.” That’s not just disengagement. It’s people doing only what’s safe, only what’s required, because trust has quietly eroded.

Gallup also found that managers account for 70% of the variance in team engagement, a staggering figure that reinforces just how pivotal leadership trust is. When people don’t feel psychologically safe, they shut down. Not dramatically. Quietly. Invisibly. What’s breaking isn’t the org chart. It’s the ability to speak plainly and be heard.

And by the time it’s visible? The damage is already done, and someone calls for a restructure.

“Low engagement is estimated to cost the global economy $8.8 trillion, 9% of global GDP.” Gallup, State of the Global Workplace 2023

So What’s the Real Takeaway?

If you’re seeing performance issues, before you jump to headcount, ask a different question:

Do the leaders in this business feel safe enough to tell the truth?

Because if they don’t, the data you’re reading isn’t real.

And if they do, but you’re not acting on it, then they’ll stop telling you.

Leadership doesn’t fail in obvious ways anymore. It fails in the gap between what people know and what they’re allowed to say.

And the price of that silence? Missed opportunity. Reputational damage. Cultural decay.

Sometimes, the problem isn’t who you hired.

It’s what you’ve made it unsafe to say.

The Energy’s Gone, But Everything Still Looks Fine

John@elr.net.au (John Elliott) — Tue, 27 May 2025 23:01:24 GMT

Why Culture Decay in FMCG Is a Silent Threat to Performance

It doesn’t start with resignations.

It starts with something much quieter.

A head of operations stops raising small problems in weekly meetings. A sales lead no longer defends a risky new SKU. A team member who used to push ideas now just delivers what they’re asked. Nothing breaks. Nothing explodes. It just... slows.

And from the outside, everything still looks fine.

The illusion of stability

In food and beverage manufacturing, where teams run lean and pressure is constant, performance often becomes the proxy for culture. If products are shipping, if margins are intact, if reviews are clean, the assumption is: we're good.

But that assumption is dangerous.

According to Gallup's 2023 global workplace report, only 23% of employees worldwide are actively engaged, while a staggering 59% are "quiet quitting ", doing just enough to get by, with no emotional investment. And in Australia? Engagement has declined three years in a row.

In a mid-market FMCG business, those numbers rarely show up on dashboards. But they show up in other ways:

New ideas stall at the concept phase
Team members stop challenging assumptions
Execution becomes rigid instead of agile
Everyone is "aligned" but no one is energised

And by the time the board sees a drop in revenue, the belief that once drove the business is already gone.

The emotional cost of cultural silence

One thing we don’t talk about enough is what this does to leadership.

When energy drains, leaders often become isolated. Not because they want to be, but because the organisation has lost the instinct to challenge, question, or stretch.

I’ve seen CEOs second-guessing themselves in rooms full of agreement. Seen GMs miss red flags because nobody wanted to be "the problem". Seen founders mistake quiet delivery for deep buy-in.

The emotional toll of unspoken disengagement is real. You’re surrounded by people doing their jobs. But no one’s really in it with you.

And eventually, leaders stop stretching too.

We train people to disengage without realising it

Here’s the contradiction that most organisations won’t admit:

We say we want initiative, but we reward obedience.

The safest people get promoted
The optimists get extra work
The truth-tellers get labelled difficult

So people learn to conserve energy. They learn not to challenge ideas that won’t land. They learn not to flag risks that won’t be heard. And over time, they stop showing up with their full selves.

This isn't resistance. It's protection.

And it becomes the default when innovation is punished, risk isn't buffered, and "alignment" becomes code for silence.

Boards rarely see it in time

Boards don’t ask about belief. They ask about performance.

But belief is what drives performance.

When culture begins to fade, it doesn't look like chaos. It looks like calm. It looks like compliance. But underneath, the organisation is hollowing out.

By the time a board notices the energy is gone, it’s often because the financials have turned, and by then, the people who could've helped reverse the trend have already left.

In a 2022 Deloitte study on mid-market leadership, 64% of executives said culture was their top priority, yet only 27% said they measured it with any rigour .

If you don’t track it, you won’t protect it. And if you don’t protect it, don’t be surprised when it disappears.

The real risk: you might not get it back

Here’s what no one likes to admit:

Not all cultures recover.

You can try rebrands. You can run engagement campaigns. You can roll out leadership frameworks and off-sites and feedback platforms.

But if belief has been neglected for too long, the quiet ones you depended on, the culture carriers, the stretchers, the informal leaders, they’re already checked out.

Some have left.
Some are still there physically but not emotionally.
And some have started coaching others to play it safe.

Once that happens, you're not rebuilding. You're replacing.

So what do you do?

Don’t listen for noise. Listen for absence.

Absence of challenge.
Absence of stretch.
Absence of belief.

Ask yourself:

When was the last time someone in the business pushed back? Not rudely, but bravely?
When did someone offer an idea that made others uncomfortable?
When did a leader admit they were unsure and ask for help?

Those are your indicators.

Because healthy culture isn’t silent. It’s alive. It vibrates with tension, disagreement, contribution and care.

If everything looks fine, but no one’s really leaning in?

That’s your problem.

And by the time it shows up in the numbers,t might already be too late.

The Succession Lie: Why Most Leadership Pipelines Don’t Exist

John@elr.net.au (John Elliott) — Mon, 19 May 2025 01:43:14 GMT

Most companies I speak to say they’re planning for the future.

But it’s a lie. When the CEO resigns, the shortlist is blank.
The board scrambles. I get a call for help.

The talent that was supposed to be “next in line” either isn’t ready — or quietly left two years ago.

That’s not succession planning.
That’s performance.

And in Australia’s mid-market, it’s happening everywhere.

If You Have a Deck but No Decision, You Don’t Have a Pipeline

Look at your last board strategy pack.

There’s a succession slide — probably colour-coded.
Key roles mapped. Names in boxes. Risk flags on anyone nearing retirement.

But what happens when that person leaves tomorrow?

Does someone step up — with board confidence, cultural alignment, and commercial readiness?
Or does everything go into pause mode?

Most leadership pipelines aren’t pipelines at all.
They’re documentation exercises.
Names written down so the company appears prepared — not because anyone’s seriously investing in readiness.

And the data backs it up.

In the 2024 CEW Senior Executive Census, just 27% of ASX300 companies had gender-balanced executive leadership teams.
Only 1 in 8 CEO appointments in 2024 were women — a sharp drop from 1 in 4 the year before.

Worse still, 20 ASX300 companies had no women at all in their executive teams.
And 82% of pipeline roles like COO, CFO and Group Exec are still held by men.

Why Is This Happening?

Because it’s easier to pretend you’re planning than to actually commit to it.

Real succession means risk.

It means stretching people before they’re “ready.”
It means visibility. Investment. Accountability.
It means putting someone in the room who might one day replace you.

That’s uncomfortable.

So companies hedge.
They focus on process instead of outcome.
They delegate it to HR.
They call it “talent mapping” or “development planning” — and convince themselves that’s enough.

But when succession is treated as a compliance task, you get structure without substance.

Most Pipelines Are Demographically Narrow — and Strategically Passive

The succession conversation is often framed as a future-looking exercise. But the truth is, it reveals everything about a business now .

Who’s trusted.
Who’s stretched.
Who’s seen.

And if the answer is: people who already look and think like the current executive team — the pipeline is a mirror, not a mechanism.

According to CEW, it could take another 54 years to reach gender parity in CEO roles at the current rate.

Not because women aren’t ready — but because succession is still being run by legacy instincts, not performance or potential.

This isn’t a gender issue. It’s a visibility issue.

It shows just how narrow — and self-reinforcing — most internal pipelines are.

Boards Are Talking Succession — But Avoiding Succession Events

In public statements, succession is always described as a “priority.”
But when a CEO departs, the replacement is usually external.

Why?

Because the plan wasn’t real.

It wasn’t built into performance cycles, role design, or investment decisions.
It wasn’t modelled for readiness.
It wasn’t supported by real-world testing.

So when the vacancy comes, the board looks around and realises:
no one’s actually ready.

And that’s when they default to external search — time pressured, high-stakes, and often misaligned.

Even companies with formal succession frameworks fail to develop internal successors who can genuinely step up. According to McKinsey, only 29% of high-potential employees globally say they are being actively developed for future leadership roles.

Real Pipelines Aren’t Built on Potential — They’re Built on Pressure

Most “high-potential” employees never get tested.

They’re praised for being strategic, collaborative, well-liked.

But they haven’t led transformation.
They haven’t navigated crisis.

They haven’t made the call when it really counted.

That’s not their fault — it’s the system’s.

If your future leaders aren’t being put in rooms where the stakes are high, the talent is being wasted. Because without context, potential is just a guess.

Real succession means stress-testing people before the vacancy. Not waiting for a resignation to find out if they’re ready.

Why Leaders Say Succession Is a Priority — Then Undermine It

Because it forces difficult conversations.

What happens if the COO is better suited to the CEO role than the founder’s chosen successor?
What if your most capable future CFO is currently in HR?
What if your only succession-ready leader doesn’t want the job?

Succession exposes reality.
It tests assumptions about who’s loyal, who’s capable, and who’s trusted.
And many leadership teams would rather protect the illusion of unity than confront the truth of readiness.

So they hold back.
They over-prepare weak candidates and underinvest in strong ones.
They promote for loyalty, not capability.
And they hope tenure will somehow turn into executive presence.

HR Isn’t the Problem — But It’s Often Trapped

HR leaders are often tasked with “running succession.”
But they rarely hold the real power to make it happen.

They can facilitate calibration, run talent reviews, maintain the spreadsheet.
But they can’t override political appointments.
They can’t force development budgets.
And they can’t get future leaders into strategy sessions unless the CEO signs off.

So they manage the optics.

They keep the plan updated.
They run performance frameworks.
But they don’t challenge the organisation’s tolerance for risk or its lack of bold placements.

And succession — like so many other critical issues — becomes theatre.

What a Real Pipeline Looks Like

It’s small. It’s specific. And it’s active.

The top 5 succession candidates have documented development goals.
They’re being exposed to investor conversations, board updates, or crisis moments.
They’re sitting in on decisions they don’t yet own.
And they’re receiving feedback not just on performance — but on readiness .

Real succession isn’t about names on a slide.
It’s about signal.

Are you giving your future leaders enough signal — authority, exposure, context — to actually grow?

Or are you keeping them in reserve, hoping they’ll stay warm until you need them?

Most Internal Candidates Are Lost Long Before the Vacancy Opens

Talent attrition isn’t just about pay.

It’s about perceived opportunity.

If your best internal leaders aren’t being stretched, seen, or spoken to, they’ll find someone who will.

That’s not speculation. It’s playing out across Australia right now.

The 2024 CEW Census shows that companies without clear succession action are more likely to lose top talent, especially women in pipeline roles.

And when those people leave, they take with them the last thread of credibility in your internal bench.

The Cost of Cosmetic Succession Planning

The price isn’t just reactive hiring.
It’s loss of culture. Institutional memory. Momentum.

When succession isn’t planned properly, the outgoing leader often overstays.
Or worse — leaves chaos behind.

And the people who could’ve brought continuity and fresh thinking are either too green… or already gone.

You don’t just lose a leader.
You lose your rhythm.

And in the world of FMCG — where category cycles are brutal and competitor innovation is relentless — rhythm matters.

So What Now?

Ask these questions:

Who are our five most critical leadership roles?
If any one of them left tomorrow, who steps in?
Would that person command confidence from the board, the team, and the market?
And if not — why haven’t we done something about it?

Succession isn’t about the future.
It’s about the decisions you make now — when you still have time to act.

Because when the vacancy hits, theatre ends.
And only the real work will matter.

When Your Biggest Customer Becomes Your Biggest Risk: A Commercial Reality No One Wants to Admit

John@elr.net.au (John Elliott) — Thu, 08 May 2025 20:48:18 GMT

In the FMCG and food manufacturing sector, we glorify customer wins. The logos on pitch decks. The volume metrics in board reports. The partnership language that implies mutual growth.

But here’s the uncomfortable truth:
Many mid-market FMCG businesses are quietly being crushed by the very customer relationships they once celebrated.

So let’s ask the real question:
What happens when your biggest customer becomes your biggest liability?

A Dangerous Dependency No One Wants to Own

Australian suppliers are no strangers to margin pressure. Whether you’re supplying Coles, Woolworths, or Costco, the power dynamics are rarely in your favour.

A 2024 report by PwC shows that while 85% of Australian CEOs believe their businesses will remain viable for a decade if they maintain current strategies, the same report highlights a global shift towards faster business model reinvention — driven largely by dependency risks and commercial stagnation.

In other words, the Australian market has become dangerously complacent.

Companies stay anchored to one major retail relationship — because it’s familiar, because it’s comfortable, and because no one wants to say what everyone already knows: This relationship is now costing us more than it makes.

The Structural Trap — Why Choice is an Illusion in Australian Retail

And it’s not just about comfort. It’s also about limited choice.

Australia’s grocery retail landscape is one of the most concentrated in the developed world. Woolworths and Coles account for over 65% of the total market. Add Aldi and Costco, and four players control the overwhelming majority of national grocery volume.

This leaves most mid-market FMCG suppliers with only two real options to scale. You either win one of the majors — or you don’t grow. There’s no Tesco vs Sainsbury’s. No Target vs Kroger. No regional chain ecosystem to spread risk.

So when a Woolworths or Coles listing lands, businesses go all in — not because they’re naive, but because structurally, they don’t have a viable alternative. And once they’re in, the retailer holds all the cards: promotional demands, packaging changes, supply chain compliance, and extended payment terms.

This is how overexposure starts: not as a failure of strategy, but as a feature of the system.

The Margin Myth: “Strategic Partnership” or Slow Suffocation?

The term “strategic partner” implies shared goals and equitable benefit. But in many supplier-retailer relationships, that’s not how it plays out.

Suppliers absorb freight increases, packaging changes, and promotional discounts — all in the name of partnership. Meanwhile, average net margins in Australian FMCG hover below 5% in many categories. Some, especially in private-label or chilled goods, are significantly lower.

If you're constantly renegotiating, discounting, and funding promotional calendars to stay on shelf — you're not in a partnership. You're in a hostage situation with quarterly reviews.

And the worst part?
Most leadership teams can’t afford to walk away — and the customer knows it.

Commercial Blind Spots: How Did We Let It Get This Far?

It usually starts innocently. One major account grows, fast. The ops team scales up. Forecasts look strong. Then the volume dips. Forecasts aren’t met. But by then, too much infrastructure, headcount and internal process are built around a single customer.

So you make the classic trade-offs:

You hold off on new channel development.
You delay diversification.
You keep servicing at full cost — for diminishing returns.

The account grows riskier with every passing quarter. But no one wants to put their hand up and say:
“We’re overexposed. We built the business around a single buyer. And now we’re stuck.”

How Businesses Get Trapped — And What the Alternative Looks Like

The deeper question is: how are businesses ending up in this position to begin with?

It’s not usually poor strategy. It’s the seduction of fast volume. A major retailer comes in with a large forecast, national exposure, and prestige. Execs say yes. Operations scale. Sales teams build pipelines around that one account. It becomes the centre of gravity for the entire business.

And by the time volume doesn’t meet forecast, the machine is already too big to pivot. Warehousing, labour, production schedules — everything is now calibrated to serve one customer.

But what’s the alternative?

The most resilient FMCG brands in Australia are the ones who build multi-channel portfolios from day one. That means:

Diversifying into DTC, foodservice, or independents, even when it’s slow to scale.
Prioritising cost-to-serve data so every account’s profitability is clear — not just revenue.
Rewarding commercial teams for profitable growth, not just top-line expansion.
Investing in longer-term resilience, even if it means slower growth upfront.

This approach doesn’t grab headlines. But it builds optionality. It gives leaders the power to say no. And that, ultimately, is how you get out of the trap.

The Denial Loop: Why Leadership Doesn’t Act Sooner

So why don’t businesses pivot faster?

Because the consequences of admitting overdependence are immediate — cost cuts, tough board conversations, sometimes job losses.

Admitting the issue feels riskier than managing the decline.

Boards often get sugar-coated updates about “strong relationships” and “opportunities in the pipeline.” Meanwhile, account managers know that POs are getting shorter, shelf space is shrinking, and payment terms are stretching. But no one wants to be the bearer of bad news.

The loyalty to that one big customer becomes a form of inertia.

What Brave Commercial Leadership Looks Like

Fixing this doesn’t mean severing key accounts. It means reassessing risk and rebuilding margin discipline — even if it’s painful in the short term.

Here’s what commercial bravery looks like in this context:

Modelling account risk exposure: What happens if your top customer halves their orders tomorrow? What if payment terms stretch to 120 days?
Redefining your internal narrative: Stop calling a margin-eroding customer a “partner.” Start calling it what it is — a risk.
Rebalancing your portfolio: Incentivise sales teams to win new channels, even at lower volume. Diversification is margin insurance.
Rebuilding cost-to-serve models: Know exactly what it costs to service each account — down to logistics, chargebacks, and admin drag.

This is what commercial leadership must look like in 2025.

The Silent Crisis in Mid-Market FMCG

This isn't just a one-off case study. It's a pattern playing out across Australia’s mid-market FMCG and manufacturing base.

KPMG’s 2024 disruption report found that 52% of private companies list supply chain disruptions and over-dependence on external suppliers or customers as key threats to growth — but only 43% are actively addressing it.

It’s not a strategic issue. It’s a leadership one. And it’s playing out in boardrooms right now.

What’s at Stake?

Everything.

If your business is too dependent on one customer, you’re not in control of your own future. One category review, one change in buyer, one corporate acquisition — and your volume is gone overnight.

Commercial leadership isn’t about maintaining the status quo. It’s about having the courage to act before the numbers force your hand. So ask yourself:

Where are we quietly overexposed?
What have we built our business around that’s now becoming a liability?
And do we have the courage to change it — before the market makes that decision for us?

This isn’t just about one customer. It’s about the future shape of your business.
And the longer you avoid the truth, the more power you give away.

What the Wellness Sector’s Leadership Needs to Survive Regulatory Scrutiny

John@elr.net.au (John Elliott) — Mon, 21 Apr 2025 01:35:28 GMT

Australia’s health, wellness, and supplements sector isn’t just growing. It’s exploding. From functional drinks to adaptogenic gummies, wellness brands have gone from niche to mainstream in record time. The industry is now worth over $5.6 billion, up from $4.7 billion in 2020 — a 19% growth in just three years. IBISWorld projects continued expansion with a CAGR of 5.3% through 2028.

But behind the glossy packaging and influencer campaigns, something else is happening: the regulators have arrived.

And most wellness brands? They’re underprepared.

From Trend to Target

The boom brought founders, fitness coaches, nutritionists, and marketing entrepreneurs into the supplement space. What many built was impressive. But what most forgot was how fast wellness moves from enthusiasm to enforcement.

With more than 40 infringement notices and administrative sanctions in Q1 alone, the Therapeutic Goods Administration (TGA) strengthened enforcement of the Therapeutic Goods Advertising Code in early 2024. Prominent companies were named in public. Soon after, the ACCC revised its guidelines for influencer marketing disclosures and launched a campaign against the use of pseudoscientific terminology in product marketing.

TGA head Professor Anthony Lawler noted in March 2024: “We’re seeing an unacceptably high level of non-compliance, particularly around unsubstantiated therapeutic claims.”

In short: credibility is the new battleground.

Why Sales-First Leadership is Failing

Too many brands are still led by executives whose playbooks were built on community engagement, retail hustle, and Instagram fluency. That got them early traction. But it won’t keep them compliant — or protect them from an investor exodus when the lawsuits begin.

The biggest risks now are not formulation errors. They’re:

Claims breaches
Compliance negligence
Advertising missteps
Unqualified health endorsements
Reputational collapse through regulatory exposure

And these aren’t theoretical. The TGA pulled 197 listed medicines from the market in 2023 alone — a 42% increase on the previous year — due to non-compliant claims or sponsor breaches.

What the Next Wellness Leader Looks Like

This is where many boards and founders face a difficult transition. The next generation of leadership in wellness isn’t defined by hustle. It’s defined by:

Deep regulatory fluency
Cross-functional commercial leadership (eComm, retail, pharma, FMCG)
Reputation management under pressure
Ability to scale with scrutiny, not just speed

The leadership profiles now needed aren’t coming out of marketing agencies — they’re coming out of pharmaceuticals, healthtech, and functional food. They’ve sat on regulatory committees. They’ve built compliance-first commercial strategies. They understand how to win trust, not just impressions.

Yes, this might feel like a shift away from the founder-led energy that made these brands exciting. But it’s not about slowing down. It’s about making sure you’re still standing when the music stops.

Where the Gaps Are

The underlying problem isn’t just non-compliance. It's immaturity in structural leadership.

The majority of wellness brands haven't developed:

An accountable governance structure; a scalable compliance architecture; a risk-aware marketing culture; and any significant succession planning beyond the founder.

In fact, a 2023 survey by Complementary Medicines Australia found that only 22% of wellness businesses had dedicated compliance leadership at executive level, and just 14% had formal succession plans in place.

This isn’t sustainable — not at scale, and certainly not under scrutiny.

Final Thought

The wellness boom isn’t over. But the rules have changed. Rapid growth is no longer enough.

The brands that win from here will be those with:

A compliance culture baked in
Leadership teams built for complexity
A board that sees regulation not as a barrier, but a brand advantage

Those who don’t? They could be one audit away from crisis.

No One Wants to Lead Here: Why Australia’s Meat Sector Has a Leadership Crisis No One’s Talking About

John@elr.net.au (John Elliott) — Thu, 17 Apr 2025 00:06:23 GMT

Australia’s meat and poultry processing industry pumps over $23 billion into our economy each year. It employs close to 150,000 people, keeps regional towns alive, fuels exports, and feeds millions. But there's a conversation not enough people are having.

Why is it so hard to find good leaders for one of the country’s most essential sectors?

The Crisis Behind the Carcass

This isn’t just a labour problem. It’s not about visas, or headcount, or overtime. This is a leadership vacuum, and it’s dragging the sector down from the inside out.

A 2023 Australian Meat Industry Council ( AMIC ) report didn’t bury the lead: executive leadership shortages across processing plants — especially regionally — are putting long-term sustainability at risk. While the media talks endlessly about unskilled labour shortages, the bigger question is this: Who’s steering the ship?

Industry data tells us more than 60% of businesses struggle to fill operations leadership roles. Most end up promoting internally, not because the candidate is right, but because no one else wants the job. That’s not succession planning. That’s survival mode.

Why No One Wants to Lead in Meat

Let’s stop pretending this is just a recruitment challenge. For many executives, meat and poultry processing is seen as:

A reputational risk
A moral quagmire
A logistical headache
A PR nightmare

It’s tough, gritty, heavily scrutinised, and often thankless. Add in remote locations, activist pressure, outdated public perception, and you’ve got one of the least appealing leadership propositions in modern Australian industry.

Even when the pay is good, the pitch is bad.

And yet the cost of this avoidance is steep:

Succession plans are paper-thin
Transformation is on ice
Executive burnout is high and rising
ESG compliance risk is creeping up daily

The Numbers Don’t Lie

Over 40% of regional processors in NSW and QLD ran under capacity last year — not because of labour gaps alone, but because no one wanted to lead the sites ( Jobs and Skills Australia, 2023 ).
72% of meat companies rank leadership capability as their top operational risk ( MLA Insights 2023 ).
Only 35% of processors have any formal succession strategy in place ( AMIC, 2023 ).

These aren’t minor stats. They’re flashing red lights.

Loyalty vs Capability: The Silent Conflict

There’s a romantic idea in this industry that leadership should rise from within. That someone who’s been on the floor for 20 years is best equipped to run the plant. Sometimes that works. Often it doesn’t.

Why? Because operational loyalty doesn’t equal transformation capability.

Many of today’s site and executive leaders are phenomenal operators. But they’re underprepared for:

Global compliance shifts
ESG audits
Workforce diversification
Supply chain digitalisation

The job changed. The leadership didn’t.

What Needs to Happen — Now

If the sector wants to survive — let alone grow — it needs leaders who:

Don’t flinch at complexity
Get compliance, but move commercially
Can lead regionally without burning out
Speak operations, brand risk, and strategy — fluently

It also needs boards and executive teams to:

Stop defaulting to internal promotions because it’s easy
Get serious about executive relocation strategy
Start building pipelines now, not after the next resignation
Tell a better story about what meat and poultry leadership really is

Because here’s the thing: the right people are out there. But they’re not applying because they don’t think this is where future-fit leaders belong.

That’s not a candidate problem. That’s a positioning failure.

Final Thought

Australia’s meat and poultry sector can’t outsource resilience to policy. It can’t wait for perception to change on its own.

It needs sharper leadership, better planning, and the courage to hire differently — before the gap becomes too wide to close.

Why You Should Be Hiring Leaders Who Embrace Discomfort

John@elr.net.au (John Elliott) — Sun, 06 Apr 2025 21:54:08 GMT

Comfort has become the silent killer of executive performance.

In an era defined by disruption, volatility, and shrinking margins, too many leadership teams are still optimising for control, not adaptability. They talk about transformation, but build cultures of stability. They prize clarity, yet avoid the ambiguity where real growth lives.

The problem isn’t capability. It’s discomfort intolerance.

The solution? Start hiring and promoting leaders who deliberately seek discomfort—not just those who can tolerate it when it arrives.

Growth Mindset Isn’t Enough Anymore

You’ve heard the term "growth mindset" countless times. It’s become a leadership cliché. But it’s not wrong—it’s just incomplete.

A growth mindset says, "I believe I can learn."

Discomfort-driven leadership says, "I will actively seek out the hardest experiences because that’s where I’ll grow fastest."

The distinction matters.

Leaders with a growth mindset tend to thrive when external change forces them to adapt. But leaders who embrace discomfort create those conditions on purpose. They invite hard feedback. They question their own success. They take action before external pressure arrives.

According to a 2023 study by Deloitte, only 22% of executives say their leadership team is “very prepared” for the future—despite record spending on transformation programmes (Deloitte Human Capital Trends, 2023). That gap exists because most teams are trained to manage change , not lead into uncertainty .

Ask yourself: Are you hiring leaders who wait for disruption—or ones who walk towards it?

Discomfort Is the Driver of Strategic Advantage

Companies don’t fall behind because they make bad decisions. They fall behind because their leaders avoid the hard ones.

In high-stakes industries like FMCG, where regulatory pressure, margin compression, and shifting consumer loyalty are accelerating, comfort is dangerous. It fosters:

Short-termism
Decision paralysis
Lack of innovation
Cultural stagnation

McKinsey found that organisations with a strong tolerance for ambiguity—where leaders frequently challenge their own assumptions—are 2.4x more likely to be top-quartile performers on total shareholder returns (McKinsey & Company, 2022).

In other words: embracing discomfort isn’t a trait—it’s a multiplier.

Let’s take an example. When COVID hit, Lion Brewery—one of Australia's largest beer producers—was forced to rethink logistics and supply overnight. But smaller craft breweries who had already diversified through direct-to-consumer models adapted faster. Why? Their founders had already been operating in discomfort. They were trained for volatility.

What Discomfort-Driven Leaders Actually Do Differently

You can spot these leaders. They don’t always look like the most confident in the room—but they’re always the most effective in a storm.

They:

Seek feedback from critics, not fans
Prioritise strategy over popularity
Tackle underperformance head-on—even if it means conflict
Ask hard questions that slow down groupthink
Regularly step out of their functional lane to challenge assumptions

They also act . Not rashly—but decisively.

In a recent Australian Institute of Company Directors (AICD) survey, directors ranked “resilience and adaptability” as the #1 trait they now seek in new appointments—outranking experience for the first time (AICD, 2024).

That’s not a trend. It’s a shift in what leadership now demands.

The Real Cost of Hiring for Comfort

Not hiring discomfort-driven leaders isn’t just a missed opportunity—it’s a risk.

Here’s what it’s costing you:

Strategic Drift: Without challenge, strategies become stale. Your team optimises yesterday’s model.
Talent Exodus: Top performers disengage when they see leadership avoiding tough calls.
Innovation Bottlenecks: Safe cultures don’t take smart risks. New ideas die in committee.
Crisis Fragility: Leaders who haven’t been tested won’t perform when stakes are high.

Bain & Company found that companies with decision-making cultures built around speed and tension—not consensus—were 95% more likely to deliver sustained value creation (Bain, 2023).

Ask yourself: Is your executive team equipped for bold calls—or just built for calm waters?

How to Identify Discomfort-Driven Leaders in Interviews

Everyone talks a good game in interviews. But few have the scar tissue that comes from operating in real discomfort. The trick is to go beyond surface-level success stories.

Here’s how:

Ask Better Questions:

“What’s the most uncomfortable decision you’ve made in the last 12 months—and how did it play out?”
“Tell me about a time you got strong pushback from your team. What did you do?”
“What’s a belief you held strongly that you’ve now abandoned?”
“When have you chosen a path that was harder in the short term, but better long term?”

Look for:

Specificity (vagueness = theory, not lived experience)
Self-awareness without self-promotion
Signs of humility: they talk about learning, not just winning
Evidence of risk-taking: role changes, cross-functional moves, or failed experiments

Pro tip: Ask referees how the leader handles ambiguity. Not just performance. This will tell you more about how they lead under pressure.

What to Do Now: Practical Actions for Executive Teams

If you want to build a leadership culture of discomfort, you have to engineer it. It won’t happen organically in high-performing, risk-averse teams. Here’s how to start:

Audit Your Current Team: When was the last time each leader took on something that scared them?
Rethink Talent Criteria: Shift from stability and experience to adaptability and action under pressure.
Redesign Development: Stretch your execs with ambiguous, cross-functional challenges—not just workshops.
Model It at the Top: If the CEO isn’t embracing discomfort, no one else will.

You don’t need to create chaos. You just need to stop insulating your leaders from discomfort—and start asking them to seek it.

The Discomfort Dividend

You can’t build a future-ready business with comfort-first leadership.

The next generation of strategic advantage will come not from better processes or faster tech—but from bolder human decisions. From leaders who are willing to feel awkward, wrong, or out of their depth—because they know that’s where the value is.

So next time you're hiring a leader, ask yourself:

Are they looking for clarity—or ready to lead without it?
Do they want the role—or are they ready for the risk that comes with it?
Are they seeking comfort—or prepared to create discomfort for progress?

Because in 2025, comfort is a luxury your business can’t afford .

Are You Hiring for Emotional Intelligence — or Emotional Avoidance?

John@elr.net.au (John Elliott) — Mon, 24 Mar 2025 02:28:02 GMT

Emotional intelligence is one of the most valued traits in executive leadership today.

It’s also one of the most misunderstood.

In interviews, every candidate knows how to speak about empathy, collaboration, and “bringing people on the journey.”
But when does that emotional intelligence start to look more like emotional avoidance?

If you’re hiring into a senior role in consumer goods or food and beverage manufacturing, this distinction matters.

Hiring someone who avoids hard conversations risks building a culture that performs around problems, not through them.

The leaders delivering the best outcomes in 2025 understand how to build trust and rapport — without dodging the accountability that comes with real leadership.

Emotional Intelligence: What It Gets Right

In complex, fast-paced industries like FMCG and food production, leaders need more than technical expertise.

They must influence, de-escalate tension, manage change, and build alignment across functions.

That’s where emotional intelligence shines.

High-EQ leaders are more likely to:

Retain talent through strong, trust-based relationships
Remain composed in high-stakes environments
Reduce conflict through proactive, clear communication
Drive psychological safety while still pushing for results

The research backs this up. According to a 2024 EHL Insights report , emotionally intelligent leaders improve employee satisfaction, engagement, and collaboration — all essential in manufacturing settings where coordination between departments is critical.

But there’s a fine line between emotional intelligence and emotional overcorrection.

When Emotional Intelligence Becomes Emotional Avoidance

The risk is subtle: leaders who over-index on empathy may begin to avoid the discomfort of conflict altogether.

That looks like:

Letting underperformance linger to “keep the peace”
Over-relying on collaboration instead of making firm decisions
Avoiding direct feedback
Prioritising harmony at the expense of clarity

A 2024 Forbes article described how emotionally avoidant leaders — despite good intentions — often undermine the very culture they’re trying to protect. Accountability erodes, decisions slow down, and high performers become disengaged.

We’ve seen this play out in executive search mandates across the sector. On paper, a candidate may appear ideal: emotionally intelligent, highly personable, well-liked. But dig deeper, and a pattern emerges — reluctance to address performance issues, vague language around past team challenges, and a track record of avoiding direct confrontation.

That’s not emotional intelligence. That’s fear, dressed as empathy.

Emotional Intelligence Is a Must — But It’s Not the Full Picture

More organisations are making emotional intelligence a key leadership trait in hiring — and for good reason.
In high-change environments, emotionally intelligent leaders:

Build trust across teams quickly
Navigate transformation without losing people along the way
Stay composed under pressure
Handle interpersonal complexity with clarity

But some of the most costly mis-hires we see come from leaders who present as highly empathetic, but struggle to lead through tension.

Not because they lack EQ — but because they confuse it with keeping everyone comfortable.

The difference?

The leaders delivering the best outcomes in 2024 and 2025 are doing both:

Holding people accountable while building engagement
Delivering hard feedback without defensiveness
Balancing calm with courage

These are the leaders who retain high performers, protect standards, and still earn trust across the business.

Hiring Outcomes Are Better When EQ Is Tested in Context

The most effective hiring processes we’re seeing in the market today aren’t just asking, “Is this leader emotionally intelligent?”

They’re asking:

Can this person hold accountability and empathy at the same time?
Have they delivered under pressure without letting performance slide?
Do they create safe cultures that are also high-performing?

The difference in outcomes is clear:

More resilient leadership teams
Better cultural fit
Fewer surprises post-placement

What to Look for in Executive Interviews

Hiring emotionally intelligent leaders isn’t just about what they say — it’s about how they’ve acted in real moments of challenge. The most effective hiring panels are getting beyond rehearsed narratives by asking sharper questions:

To probe real emotional intelligence:

“Tell me about a time you had to lead a team through a change that wasn’t popular.”
“How do you approach a conversation when someone on your team is underperforming?”
“Describe a time you disagreed with your CEO or board. What did you do?”

Watch for signals:

Are they clear and specific, or vague and diplomatic?
Do they show respect and resolve?
Do they accept responsibility, or redirect it elsewhere?

In reference checks, ask:

“How did they manage pressure or uncertainty?”
“Were they able to deliver difficult feedback directly?”
“Did they avoid difficult decisions in the name of team cohesion?”

When emotional intelligence is genuine, it shows up in results — not just relationships.

Why This Matters Now

Organisations in the consumer goods and food manufacturing sectors are undergoing constant disruption — from digitisation to regulatory shifts to cost pressures. In this environment, leadership soft skills aren’t optional.

But it’s not enough to hire likeable leaders.
The ones delivering real impact are those who bring empathy and edge.
They’re able to sit with discomfort, hold the mirror up, and still bring people with them.

That’s what true emotional intelligence looks like in 2025.

So when you’re hiring your next senior leader, don’t just ask if they care.
Ask if they can care and confront — with courage, with clarity, and with conviction.

Because your culture doesn’t need more harmony.
It needs more truth.

Ethical AI Leadership in Australia’s Consumer Goods and Food & Beverage Industries

John@elr.net.au (John Elliott) — Tue, 18 Mar 2025 03:53:03 GMT

AI is Changing Business—So Must Its Leaders

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Tomorrow's FMCG Leaders are tech-driven. Is yours?

John@elr.net.au (John Elliott) — Mon, 30 Sep 2024 06:36:35 GMT

Technology continues to be one of the biggest catalysts for change and growth.

It stands to reason that Food and beverage manufacturers who fail to embrace technology risk falling behind.

But here’s a question: How crucial is it for a CEO to truly understand technology and how it can transform business?

Isn’t this the responsibility of the CIO?

Yes.

But I’m finding that technology isn’t just for the IT department anymore—CEOs and senior leaders must understand how AI, IoT, and automation can reshape everything from supply chains and customer experiences to sustainability and regulatory compliance.

Perhaps it’s time to ask yourself:

Do you have a CEO who just oversees operations, or one who sees tech as a strategic enabler for growth?

Do they see AI, automation, and data as critical growth drivers?

Do they have a history of using technology to improve operations and customer experiences?

How comfortable are they relying on data and real-time analytics to make Data-Driven Decisions?

Do they understand how technology decisions impact compliance and industry regulations?

Do they work effectively across all departments to ensure alignment of technology with business goals?

If the answer to these questions is no. It might be time to ask – Can a CEO still be effective without tech expertise? Or does a lack of it risk stalling innovation?

Contact us today for a confidential discussion on how ELR Executive can can deliver leaders that can drive your business forward.

Why Does Retained Recruitment Win Every Time?

debbie@elr.net.au (Debbie Morrison) — Wed, 24 Jul 2024 00:14:58 GMT

Ever wonder why your recruitment process seems never-ending?

Are you constantly juggling resumes and interviews and still not finding the right fit?

Let’s break down the difference between contingency and retained recruitment and why retained recruitment is ultimately the wiser choice.

Quick vs. Quality: What’s Your Priority?

Contingency recruitment might seem appealing with its quick results and competitive edge, but are you sacrificing quality for speed?

You end up with a pool of candidates, but how many of them are truly the right fit?

Agencies working on a contingency basis often juggle multiple roles simultaneously, giving each one minimal attention just to get the job done.

This often results in a shallow candidate search and less dedication to finding the perfect match.

You’re relying on chance rather than a thorough, strategic search.

Contingency = by chance

Contingent recruitment typically yields a low 25% fill rate.

Recruiters pour 100% effort into securing fees but often work without guaranteed payment.

Focusing on quick placements can compromise candidate quality and lead to less productive outcomes.

Retained Recruitment: A Robust Approach

Retained recruitment is different.

It’s about taking the time to find quality candidates who fit your specific needs.

This method involves a robust methodology covering the entire market, ensuring that every potential candidate is considered.

Retained recruitment targets a broader and often more qualified pool by focusing on passive candidates interested in opportunities but not actively looking for them.

Did you know that 75% of candidates are not actively seeking roles?

Our approach is designed to engage this group by thinking ahead and understanding their motivations.

Our proactive, continuous mapping of the executive and senior talent pool, cultivation of relationships, and global networks offer unmatched access to leadership talent.

The Cost of a Bad Hire

Let’s face it: a bad hire can be a costly mistake.

Imagine hiring someone who looked great on paper but turned out to be a poor fit for your company.

The financial implications are significant, but the impact on team morale and productivity can be even more damaging.

A bad hire can set your company back in more ways than one.

Addressing Your Challenges

As a senior decision maker in leadership or HR, your main goals are to meet budget expectations, hire the right people, and ensure company growth.

But the challenges are real: tight budgets, short timelines, and finding candidates who fit your company’s culture and strategy.

ELR Executive's retained recruitment tackles these challenges directly.

Our approach ensures a quick, efficient hiring process.

We provide full transparency and regular updates, so you’ll never have to wonder about the status of your search.

Why Choose Retained Recruitment with ELR Executive?

The current market requires recruiters to conduct a thorough candidate search.

The best talent is harder to acquire than ever before, and they need more than a LinkedIn message to pique their interest in a new opportunity.

If the client is looking for the best candidate in the market at the time, they need to invest in a retained search.

At ELR Executive, we understand the importance of that.

Our retained recruitment service is designed to save you time and effort by conducting a comprehensive search tailored to your needs.

We leverage market mapping to identify the best talent, including those passive candidates who are not actively looking but are open to the right opportunity.

Our approach ensures that no stone is left unturned in the search for your perfect fit.

We discreetly deliver C-Suite, D-Suite, Executive, and Senior operational appointments across all departments and divisions essential to any business, ensuring our clients get the management expertise they need to achieve the growth they want.

Isn’t it time you had a recruitment process that worked for you, not against you?

Let’s discuss how ELR Executives’s retained recruitment can help you achieve your goals and streamline your hiring process.

Essential Qualities for Tomorrow's Top Executives

debbie@elr.net.au (Debbie Morrison) — Wed, 05 Jun 2024 21:33:30 GMT

FMCG trends come and go with the blink of an eye, requiring leaders to go beyond traditional management practices. Todays’ FMCG executives are confronted with a new set of challenges from rapid technological advancements and shifting consumer preferences to an ever-increasing focus on sustainability.

With the FMCG sector seeing growth, there is a greater emphasis on the unique leadership qualities that define success in this dynamic environment. We examine the critical leadership skills—adaptability, digital fluency, and sustainability-focused decision-making— essential for steering FMCG companies towards a prosperous future. Our goal is to provide future leaders with the insights to not only survive but thrive in the competitive FMCG industry by exploring essential qualities that will shape leadership in one of the world's most fast-paced sectors.

Defining Leadership in the Modern FMCG Environment

The FMCG’s leadership landscape has undergone a dramatic transformation, driven by two major forces: digital innovation and shifting global markets. How businesses operate and interact with consumers is shaping the way FMCG leaders are required to adapt, dememanding greater agility and foresight to deliver results in a highly competitive market.

The Impact of Digital Innovation

Digital innovation has fundamentally changed the playing field for FMCG companies. From how products are developed, marketed and sold. Digital technologies have introduced new opportunities and challenges. It’s expected that leaders in this sector are digitally fluent, not just familiar with digital tools and platforms but also adept at leveraging these resources to enhance business operations and consumer engagement. For instance, the ability to use of big data and analytics to make informed decisions quickly, predicting market trends and customer behaviours with greater accuracy is vital.

The integration of e-commerce platforms, social media marketing, and digital supply chain solutions are alos crucial, demanding that FMCG leaders possess a comprehensive understanding of the digital ecosystem.

Global Market Dynamics

The FMCG industry is also subject to a rapidly evolving global market. An environment which includes economic shifts, diverse consumer preferences in different regions and international trade regulations. Successful leaders need to demonstrate a high level of flexibility to effectively navigate these challenges. The capacity to promptly modify business strategies in response to trends or shifts in consumer preferences is a crucial skill. This adaptability was notably demonstrated during the COVID 19 when FMCG executives had to adjust operations to meet evolving consumer demands, such as the increased need, for health and hygiene products.

When hiring, these attributes are vital. Beyond these fundamnental skills teh most effective leaders also possess a number of traits that enable them to drive results in challenging markets.

Key Traits of Successful Leaders, in the FMCG Industry

Flexibility: In today's fast-paced FMCG landscape, leaders must be able to adjust and respond to various changes with assurance and agility. Whether its adapting to shifts in consumer trends supply chain disruptions or technological advancements flexibility enables leaders to navigate uncertainties while staying focused on long-term objectives.

Digital Fluency: As digital innovation drives the FMCG sector forward leaders need to possess digital acumen. This includes proficiency in data analysis, artificial intelligence and online commerce, along with the ability to leverage tools that boost efficiency and enhance customer interaction.

Sustainability-Focused Decision-Making: Given the rising emphasis on sustainability among consumers leaders should embed eco-socially responsible practices across their business activities. This entails making choices that not only promote progress but also have a positive impact on society and the planet.

This blend of adaptability, digital fluency, and a commitment to sustainability forms the backbone of effective leadership in today's FMCG sector, ensuring that organisations not only survive but thrive in the face of continuous change.

Identifying Core Leadership Qualities: Practical Tips for Boards and HR Teams

Identifying and nurturing potential leaders who possess adaptability, digital fluency, and sustainability-focused decision-making is critical for FMCG companies aiming to thrive in a rapidly evolving marketplace.

Boards and HR teams play a pivotal role in this process, from the initial identification of candidates to their final selection and ongoing development. With over two decades of specialist expertise in successful international search assignments, here’s how we believe employers and talent acquisition teams can effectively recognise and cultivate these essential leadership qualities throughout the hiring process.

Defining Leadership Criteria

Objective Setting: Start by clearly defining what each quality means within the context of your organisation. For adaptability, this might include resilience and the ability to manage change. Digital fluency could involve specific competencies in digital marketing, e-commerce, or data analytics. Sustainability-focused decision-making would look for a track record in implementing eco-friendly initiatives or CSR programs.

Practical Action: Develop a competency framework that incorporates these qualities. Use it as a baseline to assess both current and potential leaders within and outside the organisation.

Sourcing Executive Candidates

Targeted Recruitment: Partner with specialised recruitment agencies that focus on FMCG sectors or roles that demand high adaptability and digital skills. Platforms like LinkedIn can also be valuable for reaching out to potential candidates with demonstrated interests or relevant backgrounds and involvement in sustainability initiatives.

Practical Action: Craft position descriptions and advertisements that highlight the need for these specific qualities. Emphasise real-world challenges and opportunities within the company that will appeal to highly adaptable and sustainability-conscious candidates.

Assessing Executive Candidates

Behavioural Interviews: Use behavioural interview techniques to understand how candidates have handled situations requiring adaptability, digital savviness, and sustainable decision-making in the past. Ask for specific examples that demonstrate these abilities.

Practical Action: Incorporate scenario-based questions or simulations that require candidates to demonstrate their thinking and problem-solving skills in real-time. For digital fluency, consider assessments that gauge their ability to leverage digital tools or data.

Assessment Centres/Tools: For high-level positions, consider using assessment centres that can simulate a range of scenarios candidates might face in their roles. This can include strategy exercises, role-play scenarios, group discussions, and psychometric testing. Beyond skills testing, assessments that measure cultural suitability and personality profiling ensure that potential hires not only bring the aptitude required for the role but also the vital personal qualities to effectively lead and inspire positive change.

Making the Decision

Collaborative Evaluation: Ensure that decision-making is collaborative, involving key stakeholders from various departments. This helps in evaluating the candidate's potential impact across the organisation.

Practical Action: Use a structured scoring system based on the predefined competencies to help remove bias and focus on the qualities that are most important for the role.

Executive Onboarding and Development

Structured Onboarding: Design an onboarding process that supports these qualities from the start. For instance, introduce new hires to digital tools and technologies they will be using or brief them on ongoing sustainability projects.

Practical Action: Plan regular training and development opportunities specifically tailored to enhance adaptability, digital skills, and sustainable decision-making. This could include workshops, online courses, or participation in relevant conferences.

Continuous Evaluation and Feedback

Ongoing Assessment: Leadership development is a continuous process. Regularly assess leaders on these qualities and provide constructive feedback.

Practical Action: Implement a 360-degree feedback system that allows peers, subordinates, and supervisors to provide feedback on a leader's performance in relation to adaptability, digital fluency, and sustainability-focused decision-making.

Adaptability - The Keystone of FMCG Leadership

Adaptability isn’t just an advantageous trait—it’s a necessity for business survival and success. Some of the world's largest house-hold brands and FMCG companies have thrived through adaptable leadership strategies and provide useful insights into developing adaptability within your leadership team.

The Power of Adaptability in FMCG Leadership

Case Study: Unilever's Agile Response to Market Changes

Unilever's journey in the FMCG sector is a testament to the power of adaptable leadership. Recognising shifts in consumer preferences towards sustainability and health-conscious products, Unilever not only adjusted its product lines but also integrated these values deeply into its business strategy through the Sustainable Living Plan . This strategic pivot wasn't just about aligning with consumer values; it also involved significant advancements in reducing environmental impacts and enhancing social responsibility.

By 2020, Unilever had impressively achieved zero non-hazardous waste to landfill from its factories and reduced its greenhouse gas emissions by 46% per tonne of production. These environmental achievements were part of a broader sustainability effort that not only maintained but strengthened Unilever's market presence and consumer loyalty at a time when many competitors were struggling to adapt.

The impact of these changes was also reflected in Unilever’s financial performance. With a focus on strategic acquisitions and portfolio transformation, the company reported a 1.9% increase in underlying sales growth and a 2.4% improvement in operating profit margin in 2020. This financial success underscores the effectiveness of integrating sustainable practices with business operations.

Further enhancing its competitive edge, Unilever's investments in digital transformation have paid off. Partnerships like the one with Alibaba have expanded Unilever's online distribution capabilities in key markets such as China. Additionally, investments in technology startups have spurred innovation across its digital platforms, improving its ability to meet consumer demands in the rapidly evolving digital landscape.

Unilever's organisational restructuring and cultural transformation initiatives have also contributed to its enhanced agility. These changes have cultivated a more entrepreneurial company culture, enabling quicker decision-making and a faster response to market shifts. This organisational agility is crucial in an industry where consumer preferences and market dynamics are continuously evolving.

Through these comprehensive strategies, Unilever has not only demonstrated leadership adaptability but has also set a benchmark in the FMCG sector for how deeply ingrained sustainability can drive both business success and positive global impact.

Strategies for Developing Adaptability in Leadership Teams

Fostering a Culture of Continuous Learning:

Implementation: Encourage leaders to engage in ongoing professional development and to stay updated with industry trends and technological advancements. This can be facilitated through attendance at relevant conferences, and regular training sessions from skills-based upskilling to communication and personal development coaching and training. Benefit: Leaders are better prepared to handle unexpected changes and can lead by example, instilling a culture of learning and flexibility throughout the organisation.
Empowering Decision-Making:

Implementation: Delegate decision-making authority to lower levels of the leadership hierarchy to increase responsiveness and encourage a sense of ownership among team leaders. This empowerment can be structured through clear guidelines that allow for autonomous decision-making within defined limits.

Benefit: This approach not only speeds up response times but also helps leaders develop a hands-on understanding of the practical challenges and opportunities presented by market changes.
Scenario Planning:

Implementation: Regularly engage the leadership team in scenario planning exercises that challenge them to devise strategic responses to various hypothetical market conditions.

Benefit: This prepares leaders to think critically and strategically about the future, enhancing their ability to pivot operations swiftly and effectively in response to real-world changes.

Mastering Digital Fluency in FMCG Leadership

Digital fluency has quickly become a fundamental aspect of effective leadership. Extending beyond basic digital literacy; it involves mastering digital tools and platforms to optimise operations, engage with consumers effectively, and drive innovation. We look at why digital fluency is critical for FMCG leaders and share practical tips for fostering these skills in senior executives, as well as insights into how executive recruitment can play a role in sourcing digitally savvy leaders.

The Significance of Digital Fluency

Optimising Operations: Digital tools streamline operations, from supply chain management to inventory tracking. Leaders proficient in digital technologies can leverage real-time data analytics to make informed decisions, predict market trends, and manage resources efficiently. This not only reduces costs, it also enhances service delivery.

Engaging with Consumers: In an era where consumers are increasingly online, digital channels provide essential platforms for engagement. Social media, mobile marketing, and personalised e-commerce experiences are just a few avenues where digital fluency can enhance consumer interaction and satisfaction.

Driving Innovation: Digital fluency fosters an environment ripe for innovation. Leaders who are comfortable with technology are more likely to innovate and implement new solutions such as AI-driven customer insights or blockchain for secure transactions. Such innovations can improve the customer experience and set the stage for industry advancements.

Tips for Fostering Digital Skills in Senior Executives

Continual Learning and Development:

Practical Tip: Organisations that implement ongoing training programs focusing on emerging digital trends and tools tend to be on the front-foot of innovations. By encouraging participation in workshops, webinars, and courses offered by tech leaders and academic institutions helps them foster a digital-first culture.

Example: Establish a partnership with technology firms or digital consultancies that can provide bespoke training sessions tailored to the needs of your executives.
Encouraging a Digital Mindset:

Practical Tip: We’ve found that organisations who cultivate a culture that values and rewards innovation and experimentation benefit from improved overall business performance. These organisations Encourage senior leaders to lead digital initiatives, giving them ownership and accountability for digital transformation projects.

Example: Set up innovation labs where leaders can experiment with new technologies on small-scale projects without the risk of significant consequences.
Hands-On Experience:

Practical Tip: Besides theoretical knowledge, businesses that provide practical, hands-on opportunities to use new digital tools adapt faster to rapid digital innovations. By implementing pilot projects or shadowing programs with IT departments, these organisations improve their ability to rapidly adopt digital tools.

Example: Initiate a 'digital day' where leaders are expected to work solely with new digital tools and platforms, guided by in-house or external IT experts.
Assessment of Digital Skills:|

Practical Tip: We’ve seen that organisations who include specific assessments to evaluate a candidate’s digital fluency during the recruitment process, can often make exceptional hires from outside of their traditional talent pools. Assessments could involve practical tasks where candidates demonstrate their ability to navigate digital tools or strategise digital solutions.

Example: Use simulation software that mimics the company’s digital platforms to assess how quickly and effectively a candidate can adapt to your technology environment.

Sustainability-Focused Decision-Making

Impact on Corporate Reputation and Personal Values in Hiring

The alignment of a candidate's personal values with corporate sustainability goals is crucial. A strong personal commitment to sustainability can significantly enhance a company's reputation by ensuring that its leaders not only advocate for but also embody the principles of sustainability. This alignment not only strengthens the company’s ethical stance but also deepens trust with consumers, investors, and regulatory bodies. Here's some factors employers should consider and look for in potential executive candidates:

Demonstrable History of Integrating Sustainable Practices

Experience and Impact: We believe employers should seek candidates who have a proven track record of integrating sustainable practices within business models. This includes leading initiatives that reduce environmental impact, enhance social responsibility, and ensure economic viability — the three pillars of sustainability. Executive candidates should be able to demonstrate specific instances where their leadership directly contributed to advancements in corporate sustainability.

Innovation in Sustainability: Look for executives who have pioneered or significantly improved sustainability programs. Innovations might include developing new product lines that meet high environmental standards, implementing cutting-edge waste reduction processes, or initiating successful recycling programs. Such innovations indicate a candidate’s ability to lead change and make substantial impacts.

Alignment with Personal Values

Personal Commitment: Candidates should exhibit a deep personal commitment to sustainability, which can be assessed through their involvement in sustainability-focused organisations, personal lifestyle choices, or public advocacy for environmental issues. This personal dedication often translates into more authentic and passionate leadership in corporate contexts.

Cultural Fit: It’s important that a candidate's values align with the company's culture and sustainability goals. This alignment ensures that the executive will thrive within the corporate environment and will be more effective in driving the company’s sustainability agenda forward.

Leadership and Influence: Potential leaders should not only practise sustainability but should also inspire others to follow suit. Their ability to influence the organisational culture and lead by example is critical in making sustainability a core part of the business strategy.

Assessing Candidate Values During the Hiring Process

Behavioural Interviews: Use behavioural interview techniques to ask candidates about past experiences with sustainability. Questions might focus on challenges they have faced in implementing sustainable practices and how they overcame them.

References and Background Checks: Speak with former colleagues and subordinates to understand the candidate’s true commitment to sustainability. This can provide insights into how deeply ingrained these values are in their leadership style and decision-making processes.

Assessment Scenarios: Present candidates with hypothetical business scenarios that test their ability to incorporate sustainability into strategic decisions. Their responses can offer valuable insights into how they balance short-term business goals with long-term environmental and social objectives.

By focusing on these areas during the executive hiring process, companies can ensure that their leaders not only drive sustainable business practices but also strengthen the company’s reputation through their personal commitment to these principles. This comprehensive approach to evaluating both professional accomplishments and personal values is essential for identifying leaders who will advance corporate sustainability effectively.

ELR Executive’s Role in Identifying Adaptability

At ELR Executive, we’ve fine-tuned the executive search process to support the needs of FMCG and Food & Beverage businesses across Australia and the Asia Pacific. Our method and proven SELECT methodology is both rigorous and consultative, ensuring the leaders we place propel your company towards long-term growth. We manage the recruitment process from start to finish, ensuring a seamless integration of new leaders.

Tailored Assessment Processes:
Our firm utilises a combination of behavioural interviews and situational judgement tests to assess a candidate’s adaptability. We look for evidence of past behaviours where the candidate has successfully navigated change, demonstrating flexibility and strategic thinking. Additionally, we engage candidates in discussions about hypothetical scenarios to observe their problem-solving and adaptability skills in real-time. We are offering a Free Executive Assessment to help employers empower better hiring practices and decision-making for senior leadership appointments. Contact our expert team to learn more .

Emphasising Soft Skills:
During the recruitment process, we place a strong emphasis on soft skills that are indicative of an adaptable leader, such as resilience, openness to new experiences, and effective communication. These qualities are essential for leaders who need to manage teams through periods of uncertainty and change.

Aligning Leadership Qualities with Strategic Business Goals

As we delve deeper into the role of leadership within the FMCG sector, an essential question arises: How can we ensure that the development of leadership qualities is in alignment with the overall strategic objectives of a company?

This alignment is crucial for fostering a leadership team that not only meets current organisational needs but also drives the company towards future success.

Defining What Leaders Need to Know and Do

Think of this as setting the stage for what you expect from your leaders. What skills do they need to push the company forward? This might be their knack for innovation, how well they handle digital tools, their flexibility in changing situations, or their dedication to keeping things green.

Example: Suppose your company really wants to push ahead with digital transformation. In that case, you'd want leaders who are not just comfortable with technology but savvy about using data to make smart decisions and familiar with what’s involved in implementing digital transformation initiatives designed to enable real-time data analysis for rapid data-driven decision-making.

Customised Learning Journeys

Once you know what skills your leaders need, create specific training just for them. These aren't one-size-fits-all programs but are tailored to help them excel in areas that align with the company’s vision.

Example: Google's approach to designing leadership development programs includes a mix of on-the-job training, tailored workshops, and technology-driven learning modules to address areas like sustainable business practices, cutting-edge technology skills, and leadership in digital innovation. These programs are crafted to align with Google's emphasis on continuous innovation and rapid growth within the tech industry.

They offer courses on leadership through their "Grow with Google" initiative and other internal platforms that focus on developing skills in digital marketing, effective team management, and managing complex projects. This bespoke approach ensures that every leader at Google is not only technically well-versed but also prepared to lead in an environment that values creativity and forward-thinking.

Setting Goals That Matter

Establishing realistic, attainable goals is about making sure leaders know what targets they're aiming for, which should directly tie back to your company’s key objectives. In most organisations, this is woven into their performance evaluations.

Example: If reducing your company's carbon footprint is a goal, you might measure a leader’s effectiveness by how well they implement new green policies or cut down on waste against agreed time-frames and budgets.

Planning for the Future

Preparing for the future by identifying and training potential leaders is crucial. Surprisingly, a significant portion of Australian businesses have not prioritised this critical aspect. A recent survey by Robert Half Talent Solutions found that about 27% of Australian businesses do not have a succession plan in place. Many see it as a lower priority or are not planning to leave soon, which might explain the lack of preparedness.

Given these statistics, a competitive advantage awaits those leaders who proactively identify high-potential employees and equip them with the necessary skills to take on leadership roles in the future. This means not just recognising talent but actively developing it through targeted training programs that align with the company's strategic goals. These programs should focus on areas crucial for future leadership, such as sustainable business practices and advanced digital marketing strategies.

Example: Regular reviews and development sessions are a good starting point if you have no formal succession plans in place. This can start the process for preparing up-and-coming leaders. Engaging with a specialist executive search firm to assist in the succession planning process can significantly improve the success rate of your leadership development programs by identifying potential leaders and advising on leadership development pathways, executive search firms can help fast-track their professional growth.

Tailored Executive Search in FMCG Niches: Meeting Unique Leadership Needs

In the diverse world of FMCG, each sub-sector presents unique challenges that require leaders with specialised skills and knowledge. Specialist executive search firms are pivotal in meeting these specific executive hiring needs through highly nuanced approaches and specialised industry knowledge. Understanding how these firms tailor their strategies to effectively address the leadership requirements of various FMCG niches like Beverage Manufacturing, Retail Groceries, and Dairy Product Manufacturing is essential in helping you to identify what qualities to look for when selecting an executive search firm.

What to Look for in an Executive Search Firm

When considering using an executive search firm for hiring FMCG leaders, here are essential qualities to look for:

Deep Industry Expertise:
Choose a firm with a deep understanding of the FMCG sector and its various niches. Knowledge of specific challenges and trends in areas like beverage manufacturing or dairy production is crucial for identifying the right leadership talent.
Tailored Search Strategies:
Look for firms that offer customised search strategies rather than a one-size-fits-all approach. They should demonstrate how they adapt their methods based on the unique demands and strategic goals of your business.
Track Record of Success:
Evaluate the firm’s past success in placing leaders in FMCG roles. Successful placements in similar companies or industries are a good indicator of their ability to accurately meet your needs.
Comprehensive Candidate Assessment:
Ensure that the firm has a robust methodology for assessing candidates. This should include not only verifying experience and skills but also evaluating cultural fit and leadership potential.
Long-Term Support and Consultation:
The best firms offer ongoing support post-placement to ensure a smooth transition and continued success. They should also provide insights into market trends and leadership development.

By partnering with an executive search firm that possesses these qualities, FMCG companies can ensure they find leaders who are not only capable of meeting current challenges but also driving future growth and innovation. This tailored and informed approach is key to harnessing the full potential of leadership talent in the nuanced and rapidly evolving FMCG landscape.

Navigating the Complexity of Executive Hiring in FMCG

debbie@elr.net.au (Debbie Morrison) — Tue, 28 May 2024 20:27:27 GMT

Hiring executives is no simple task, in the FMCG & Food & Beverage Manufacturing sectors. The competition is fierce. Changes in consumer preferences and market conditions mean companies must innovate to meet the industry’s evolving demands.

Industry nuances add a greater layer of complexity to recruitment, highlighting the importance of leaders who can navigate challenges while also being forward-thinking enough to guide companies through uncertain times without losing consumer trust. Striking this balance makes strategic hiring crucial in these sectors.

So how can organisations prepare themselves to overcome these challenges and attract the talent? Just how vital is candidate evaluation in ensuring a good fit not only for the present but also for the future?

In this piece, we delve into strategies that employers and recruitment teams can adopt to better handle the intricacies of hiring executives.

Understanding the Current Landscape

The FMCG and Food & Beverage sectors exemplify dynamism and rapid change. These industries are highly responsive to shifts in consumer behaviour, technological advancements and global economic trends making them demanding environments for leadership roles.

While traditional leadership skills remain important they are now one aspect of what's required for success.

The current business landscape demands adaptability, the ability to foresee changes and lead effectively – crucial for organisations to remain competitive. These skills enable companies to react promptly to market shifts, embrace technologies and navigate regulatory environments.

The Evolution of Recruitment Practices, in the FMCG and Food & Beverage Sectors

The FMCG and Food & Beverage industries are not rapidly changing but face unique challenges in executive recruitment due to several key factors;

1. Changing Market Dynamics: These sectors operate in paced settings where consumer preferences, technological advancements and economic conditions can fluctuate rapidly often leading to impacts.

2. Regulatory Compliance: Meeting local and international regulations related to food safety, environmental standards and labelling poses challenges that require expertise in risk management and compliance.

3. Supply Chain Complexity: With supply chains and logistics networks managing perishable goods and cold chain requirements while ensuring cost effectiveness, quality assurance and timely delivery presents ongoing challenges.

4. Technological Progress: The emergence of technologies, like intelligence, blockchain and the Internet of Things (IoT) offers exciting opportunities to enhance product quality and engage customers effectively.

However to effectively incorporate them one must possess an understanding of the technology's future applications, not just the technical aspect.

5. Sustainability and Ethics: The rising demands, from consumers and regulators for sustainable practices necessitate a delicate balance between economic objectives and social as well as environmental responsibilities. Implementing practices throughout a company's operations often involves investments and operational modifications.

6. Geographic Diversity: Managing operations across cultures and geographical locations requires executives to demonstrate interpersonal skills, including cross cultural communication abilities often in multiple languages. Adapting strategies to suit markets while understanding and respecting nuances can significantly enhance the pool of suitable talent.

These industries experience changes in consumer preferences, technological disruptions and evolving market conditions. Such dynamics call for an approach to recruitment and retention that emphasises skills beyond conventional metrics, such as strong visionary leadership capabilities aligned with the company's broader ethical and strategic objectives.

Furthermore, candidates' preferences have evolved well. Executives are increasingly seeking opportunities with organisations committed to sustainability, innovation and employee welfare. This shifting expectation, among candidates necessitates companies to reconsider how they portray themselves and engage with hires.

Shortcomings of Conventional Hiring Methods

Typical recruitment strategies often place an emphasis on candidates prior experiences and qualifications. While these aspects are undoubtedly crucial they may not fully capture a candidate's ability to tackle challenges or fit seamlessly into a company's culture in today's business landscape.

Challenges Faced by Businesses with Traditional Approaches

Rigid Skill Assessment: The traditional approach of evaluating skills often overlooks a candidates adaptability and potential for growth qualities that are vital in the evolving FMCG and Food & Beverage industries.

Excessive Focus on Experience: Although having a background and proven experience in the field is valuable an excessive focus on past roles can disregard candidates who bring fresh perspectives or diverse industry insights that could be advantageous.

Slow Adoption of Technological Progress: The delay in incorporating technologies into the recruitment process can impede the ability to attract and engage savvy candidates who are poised to spearhead digital transformations.

Current Dynamics in the Talent Market

The present talent market is undergoing changes well. Executive candidates have varying expectations and attitudes towards employers. The increasing popularity of work, the importance placed on achieving work life balance and the quest for fulfilling work are influencing how professionals perceive job prospects.

A recent report, from Elevatus points out that the market is expected to grow at a rate of 5.7% from 2022 to 2023 indicating opportunities that require a workforce equipped not only with technical skills but also a forward thinking approach.

Given the pace of growth and transformation, how are companies ensuring they can identify leaders who possess the ability to not just navigate but shape the future of the industry?

One approach is to focus on candidate assessments. Evaluating candidates has become increasingly vital in the recruitment process ensuring an alignment between a candidate's abilities and the long term goals of the hiring organisation.

The Role of Comprehensive Candidate Evaluation

Employers at this level are expanding their methods for hiring executives by incorporating holistic talent assessment strategies, sometimes even replacing traditional approaches. They have come to understand that thriving in paced industries requires more than matching technical skills or work experience. Evaluating candidates comprehensively plays a role in simplifying hiring decisions by focusing on a perspective that includes cultural alignment, leadership potential and the capacity for driving innovation and change.

Implementing a talent assessment framework that digs into various aspects of a candidate's profile is essential. This involves not examining their credentials but also assessing how well they align with the company’s values, their leadership approach and their ability to adapt to industry changes (JRG Partners LLC). These detailed assessments ensure that candidates possess not only the necessary skills but also the flexibility to grow alongside the company and industry.

Using candidate evaluation as a means for enhancement throughout the recruitment process helps employers gain an understanding of the qualities, traits and attributes most suitable for their organisation and critical leadership roles. This improves recruitment efficiency through customised strategies that can significantly streamline the hiring process.

By tailoring the search and selection process based on candidate assessments employers can ensure matches with candidates. This does not streamline the hiring process. Also enhances the chances of long term success for both the company and the hired executives. However while evaluating candidates is crucial many organisations tend to overlook the importance of nurturing an employer brand.

Harnessing Employer Branding

Can a robust employer brand act as a magnet for attracting talent in the industry?

In essence, yes. A strong employer brand isn't an asset; it's a necessity. In today's executive talent landscape professionals seek organisations that not offer competitive salaries and benefits but also stand out for their values, culture and innovative approach. Therefore enhancing your employer brand plays a role, in attracting talent and setting yourself apart from competitors.

Crafting an Appealing Employer Brand

Developing a compelling employer brand extends beyond marketing tactics enticing job postings and office perks. Here are some essential factors to consider;

Clearly Defining Your Mission and Values; Prospective candidates often gravitate towards organisations whose missions resonate with their values.

By expressing your dedication to sustainability, ethical standards and innovation you can significantly enhance your chances of attracting and engaging talent. This alignment not only attracts candidates but also fosters a deeper level of commitment and loyalty right from the beginning.

Highlighting the aspects of your company culture that embrace diversity, inclusion and employee well being can greatly boost your reputation as an employer of choice. Beyond offering work arrangements, create safe and open work environments that promote expression, creativity and innovation. Consider implementing wellness programs and continuous learning opportunities to appeal to executives seeking a thinking workplace.

Strategically leveraging media platforms can be instrumental in crafting a brand narrative. By sharing insider perspectives, employee testimonials and authentic CSR initiatives you can establish an attractive brand identity. This approach lays the foundation for connecting with candidates even before the initial interview takes place.

Engaging in thought leadership activities allows companies to position themselves as industry frontrunners, in the FMCG sector. Actively participating in industry dialogues publishing papers and hosting webinars are effective ways to showcase expertise and leadership within the field.

Enhancing visibility and portraying the company as thinking not attracts candidates who are excited to collaborate with innovators and industry frontrunners but also establishes a positive image.

Encouraging employee advocacy through testimonials can greatly boost the authenticity of your brand as an employer. Sharing stories of career growth, internal mobility and professional development, from employees serves as endorsements of your company’s culture and values enhancing its appeal.

A strong employer brand goes beyond attracting talent; it boosts awareness resulting in a pool of candidates who are already engaged with your organisation's culture and values. This pre-existing engagement streamlines the recruitment process increasing the conversion rate from candidate to employee. Additionally a solid employer brand reduces hiring expenses. Enhances retention rates by fostering employee commitment to the company's vision and ensuring alignment.

In a talent landscape a robust employer brand is not merely advantageous; it is indispensable. It sets a company apart, in a market. Draws visionary leaders who can drive organisational advancement forward.

When it comes to deciding between external recruitment, for specialised, to fill and key leadership positions the choice can have a significant impact on organisational continuity and innovation. While opting for recruitment has its benefits like an understanding of company culture and operations there are situations where external recruitment might be the more strategic option.

Advantages of Internal Recruitment

Handling the executive recruitment process internally is often preferred by employers and talent acquisition teams as it offers advantages;

In Depth Knowledge of Company Culture and Requirements: Internal talent acquisition teams possess an understanding of the company's culture, strategic objectives and specific needs. This knowledge allows them to pinpoint candidates who not only have the skills but also resonate with the company's values and goals. Such alignment is vital for long term success.

Cost Effectiveness: Managing the executive search internally can sometimes lead to cost savings compared to engaging agencies. However prolonged hiring processes or incorrect hiring decisions could result in cost implications.

Control Over Recruitment Procedures: Keeping the process in house provides companies with control over every aspect of recruitment from creating job descriptions to selecting candidates.

Developing Internal HR Capabilities: Handling the recruitment of top level executives in -house is a way to enhance the skills of the HR team by exposing them to recruitment methods. This hands-on experience is beneficial. Can lead to increased efficiency and effectiveness in hiring endeavours although it does come with its own set of risks.

When to Think About External Recruitment

While there are advantages to managing executive hiring there are situations where seeking talent outside the organisation may be an option;

Expanding the Talent Pool: By looking beyond traditional networks and local connections, organisations can tap into a diverse pool of executives and professionals who may not typically be reached through internal recruitment efforts.

Attracting Passive Talent: While job postings and branding efforts can attract job seekers – who represent a small portion of the talent market – the most exceptional candidates are often not actively seeking new opportunities. Engaging with this talent requires a nuanced approach that can uncover top tier professionals who might not have otherwise considered making a career move.

Conducting Comprehensive Skills and Personality Assessments: External recruitment agencies utilise assessments to evaluate candidates ensuring that those shortlisted not possess the necessary skills but also align with the values, traits and attributes essential for driving performance and enriching company culture.

Infusion of Fresh Perspectives: Introducing candidates can inject viewpoints, skills and creative concepts into the company essential for adapting and thriving in the rapidly evolving FMCG market. This becomes especially valuable when aiming to enter markets or revamp strategies. An external viewpoint is crucial in spotting talent.

Addressing Skills Shortages: When there's a lack of expertise or abilities within the existing workforce, turning to recruitment becomes necessary. This often occurs with advancements or when venturing into product areas where current employees may lack the necessary skills. Knowing where to locate talent and effectively presenting the opportunity to attract them is key.

Promoting Diversity: External recruitment serves as a method to enrich diversity within the organisation. Bringing in leaders from backgrounds can broaden the company's perspectives and approaches fostering an inclusive workplace environment.

Choosing between external recruitment strategies demands a consideration of the organisation's immediate requirements and long term objectives. While the potential cost savings associated with hiring may be appealing, external recruitment provides access to a talent pool infuses fresh vigour and introduces diverse talents beyond what traditional internal approaches can offer.

Every method has its advantages and potential drawbacks and the decision mainly relies on the situation and goals of the company.

Shaping the Future of Executive Recruitment, in FMCG and Food & Beverage

Successfully navigating the realm of recruitment requires a mix of strategic planning, flexibility and a profound comprehension of market dynamics and corporate culture. Throughout our conversation we've examined aspects of the recruitment process each underscoring the need for strategies in a landscape characterised by swift changes and intense competition.

Employers need to understand that traditional hiring methods, which often prioritise experiences and fixed qualifications, are increasingly inadequate in evaluating candidates' readiness to tackle challenges. The evolving nature of the FMCG and Food & Beverage sectors demands a hiring approach that values adaptability and thinking leadership as much as it values experience and expertise.

Comprehensive candidate assessment plays an important role, by enabling organisations to delve deeper into each candidate's potential. This method not evaluates their suitability but also their ability to progress alongside the company and propel it forward amidst an industry undergoing constant change. Nevertheless it's essential to acknowledge that recruitment is one part of the process; ongoing development is equally vital.

Building an employer brand and effectively managing both external recruitment resources are crucial, for attracting and retaining top talent.

As we look ahead the FMCG and Food & Beverage industries need to improve these approaches seeing the challenges of their markets as chances to innovate in recruitment. By creating environments that draw in flexible and tech savvy leaders companies can not just fill roles. Also enhance their organisational culture giving them a competitive advantage.

The journey towards recruitment is complex and ongoing. It requires organisations to be introspective, creative and inclusive. Industry leaders are urged to adjust their hiring strategies to align with the markets they operate in. By doing so, organisations expect to thrive in the dynamic and competitive landscapes of FMCG and Food & Beverage manufacturing. If you feel you would benefit from the expert insights gained from a professional candidate evaluation and assessment from trained professionals, enquire about our https://www.elrexecutive.com.au/free-executive-talent-assessment-2 .

Executive Onboarding in Food & Beverage: The Blueprint for Success

debbie@elr.net.au (Debbie Morrison) — Tue, 09 Apr 2024 04:42:28 GMT

The arrival of a new executive heralds a period of opportunity, transformation, and, inevitably, challenge. The process of integrating this new leader – onboarding – is a critical, often under-emphasised phase that can significantly influence the trajectory of both the individual's and the company's future. So why do so many organisations fail to get executive onboarding right?

The High Stakes of Executive Onboarding

The adage "well begun is half done" resonates profoundly in executive onboarding. Harvard Business Review reveals a startling statistic: as many as 40-50% of new executives fail within the first 18 months of their appointment. This failure rate is not just a personal setback for the executives; it represents a substantial cost to the company – often up to five times the executive's salary. The reasons for failure? Poor cultural fit, unclear expectations, and inadequate onboarding support top the list.

But what makes the consumer goods industry particularly challenging for new executives? It's a dynamic sector where consumer preferences shift rapidly, supply chains are complex, and competition is intense. Here, more than anywhere else, an executive's ability to adapt and lead effectively from the outset is paramount.

The Multifaceted Challenges in Onboarding

The failure of many organisations in the consumer goods industry to effectively onboard new executives is multifaceted:

1. Tailored Onboarding Versus Standard Processes

The provided text emphasises the necessity of a tailored onboarding process for executives, distinct from standard employee onboarding. This is particularly relevant in the consumer goods industry, where executives must navigate unique market dynamics, consumer trends, and complex supply chains in Australia. Tailoring the onboarding process to address these specific industry challenges ensures that executives can hit the ground running with a clear understanding of the landscape they will operate in.

2. The Role of a Dedicated Onboarding Team

The concept of a dedicated project team for executive onboarding, as implemented by Palo Alto Networks, could be highly effective in the consumer goods sector. Such a team could focus on providing industry-specific insights, facilitating connections with key stakeholders, and ensuring that new executives understand the nuances of the Australian consumer market. This team would act as a bridge between the executive and the unique aspects of the Australian consumer goods landscape.

3. Engagement During the Notice Period

In the consumer goods industry, where market trends and consumer preferences can shift rapidly, keeping executives engaged during their notice period is crucial. This period can be used to familiarise them with current market analyses, consumer behaviour trends, and ongoing projects. This proactive approach ensures that the executive is well-informed and ready to contribute from day one.

4. Cultural Orientation and Familiarity

Building a strong cultural connection is vital in any industry but takes on added importance in consumer goods, which often relies on understanding and adapting to cultural nuances to succeed. Regular touchpoints that orient the new executive to the company's culture, values, and consumer-centric approach can help in crafting strategies that resonate with the Australian market.

5. Collaboration Among Various Teams

The need for collaboration between HR, Reward, Performance, and Talent teams is pertinent in the consumer goods sector. This collaboration can ensure a unified approach to addressing the specific challenges and opportunities an executive might face in this dynamic industry. For instance, understanding the compensation frameworks and performance indicators specific to different departments within a consumer goods company can aid an executive in making more informed decisions.

6. 'Just-in-Time' Resources

The idea of providing ‘just-in-time’ resources is particularly beneficial for executives in the fast-moving consumer goods sector. Given the rapid pace of change in consumer preferences and market trends, having access to real-time data and concise, relevant information can be invaluable. This approach allows executives to stay agile and make decisions based on the latest market insights.

7. Understanding of Performance Cycles

In the consumer goods industry, understanding the timing and nuances of performance cycles is critical. This is especially true in a market like Australia, where seasonal trends and events can significantly impact consumer behaviour. The onboarding process should include education on these cycles, preparing executives to plan and execute strategies effectively in sync with these fluctuations.

The Role of the Board in Facilitating Successful Onboarding

The board of directors plays a pivotal role in the onboarding process. Their actions, or lack thereof, can set the tone for the new executive’s tenure. What should they be doing?

Pre-Onboarding Engagement: The process starts before the executive's first day. Boards must ensure clear communication about the company's vision, challenges, and expectations. This early dialogue helps align the executive’s mindset with the company's strategic goals.
Structured Onboarding Plan: Developing a comprehensive, customised onboarding plan is crucial. This should cover not just the operational aspects of the role but also the cultural and interpersonal dynamics of the organisation.
Mentorship and Networking Support: Assigning a mentor from the board or senior leadership can accelerate the integration process. Additionally, facilitating introductions and networking opportunities within and outside the company is invaluable.
Regular Check-Ins and Feedback: Ongoing support doesn’t end after the first week or month. Regular check-ins to provide and receive feedback ensure any issues are addressed promptly.
Performance Metrics: Clear, early-established metrics for success help the new executive understand how their performance will be measured.

Enhancing Executive Performance through Effective Onboarding

The correlation between effective onboarding and enhanced executive performance is well-established. A study by McKinsey found that executives who had a successful onboarding experience were 1.9 times more likely to exceed performance expectations. Furthermore, these executives reported feeling more integrated into the company culture and more effective in their roles earlier than their peers who experienced less structured onboarding.

Effective onboarding leads to better decision-making, faster strategy implementation, and a more cohesive leadership team. It builds a foundation of trust and understanding that is crucial in the high-stake, rapidly evolving consumer goods market.

Onboarding as a Strategic Imperative

Effective executive onboarding goes beyond mere orientation – it is a strategic process that lays the groundwork for long-term success. As we've seen in the consumer goods industry in Australia, a well-planned and executed onboarding process can be the difference between a flourishing leadership tenure and a costly misstep.

In an era where the cost of failure is high and the speed of change is relentless, consumer goods companies must view executive onboarding not as a perfunctory checklist but as a fundamental building block of sustainable leadership and organisational success.

Remember, your new executive's journey is a reflection of your organisation's commitment to leadership excellence. Invest in their onboarding, and you're investing in the future of your company.

Talent Acquisition: Internal Strategies vs. Executive Search Partnerships in Australia's Beverage Industry

debbie@elr.net.au (Debbie Morrison) — Mon, 18 Mar 2024 19:53:23 GMT

The beverage industry in Australia is experiencing a renaissance of sorts, propelled by shifts in consumer preferences toward health, sustainability, and innovation. As we navigate through 2024, the challenges of rapid market expansion and evolving consumer expectations present a unique set of challenges for executive recruitment in this vibrant sector.

Addressing the Unique Hiring Challenges in Australia's Beverage Industry

Navigating Growth and Innovation

The International Food Information Council (IFIC) forecasts that 2024 will spotlight functional beverages, with a significant uptick in botanicals and products supporting emotional wellbeing. With 74% of Americans, and a similar trend observed in Australians, believing in the substantial impact of food and beverages on their mental and emotional wellbeing, the Australian beverage industry is at the forefront of integrating these insights into product innovation.

Regulatory and Quality Assurance Expertise

With organic beverages becoming increasingly popular due to their health benefits and lack of synthetic additives, executives in this space must possess not just a cursory understanding of organic certification and regulatory compliance but a deep, actionable knowledge to ensure product quality and authenticity. For employers, especially small to mid-sized brands or start-ups, the imperative of attracting and enticing executives with this blend of expertise, particularly those from the market leaders is critical.

Health and Sustainability Focus

Beyond the necessity of innovative products that meet strict regulatory and quality controls, the consumer shift towards products that align with health consciousness and environmental sustainability is fast becoming a movement. Anticipating and meeting the demands of more health-focused and environmentally conscientious consumers requires leaders who not only understand but are passionate about driving forward these values in product development and company ethos.

Strategic Product Development and Market Demands

The demand for eco-friendly packaging and premium, diverse organic beverage offerings is shaping strategic product development within the industry. Executives must be able to navigate these demands, understanding the nuances of market trends and consumer expectations. Yet for brands seeking to appoint senior management and executive leadership, the talent pool of industry professionals anticipating and responding to these emerging consumer preferences by innovatively developing quality, healthy product lines that satisfy regulatory controls in a way that is sustainable and environmentally friendly is small. So how do beverage brands ensure their executive leadership teams are equipped to steer this rapidly changing terrain?

The Impact on Executive-Level Talent Attraction

The unique challenges presented by the beverage industry's focus on health, sustainability, and regulatory compliance impact the talent attraction process significantly. According to LinkedIn’s January 2024 Jobs on the Rise report, 76% of Australians are considering a new role, indicating a volatile employment market ripe with opportunities but also challenges in retaining and attracting executive-level talent.

This volatility extends to the recruitment landscape for executive talent in Australia's beverage industry, making it more competitive and complex than ever, particularly in the wake of market stabilisation. With an overwhelming majority of Australians open to new opportunities, such market dynamics are not necessarily favourable for attracting the right talent so the imperative for beverage companies to differentiate themselves cannot be overstated. The allure of traditional compensation is also waning in favour of roles offering a synthesis of personal life values, purposeful work and inclusivity. In this context, executive search firms stand out as pivotal allies for businesses aiming to navigate the intricate demands of consumer preferences, digital innovation, regulatory compliance, and sustainability.

Internal Hiring vs. Engaging an Executive Search Firm

The Cost-Benefit Analysis of Each Approach

Given the complex landscape, businesses must conduct a thorough cost-benefit analysis when deciding between internal recruitment and engaging an executive search firm. While internal promotions can boost morale and reduce onboarding times, they may lack the specific skill sets required to navigate the industry's unique challenges.

Executive search firms bring a bespoke approach to talent acquisition, which is particularly advantageous in the fast-evolving beverage industry. These firms excel in reaching passive candidates—high-calibre professionals who are not actively seeking new roles but could be the perfect fit for your organisation's strategic goals. The expertise and broad networks of these firms allow them to identify and attract talent that remains invisible to internal HR teams' conventional recruitment strategies.

Expertise, Resources, and Strategic Importance

Deciding whether to search internally or externally for executive talent depends largely on the organisation's existing resources, networks, and the strategic importance of the role. The current market condition, highlighted by a tight labour market with unemployment below 4% and high competition for skilled leaders, underscores the need for a strategic approach to executive-level recruitment.

The Case for Executive Search Firms in the Beverage Industry

Today's beverage market is characterised by a rapid shift towards functional beverages, botanicals, and products designed to enhance well-being. Meeting these nuanced consumer preferences requires leaders who not only understand market trends but can also anticipate and innovate ahead of them. Executive search firms specialise in identifying individuals with a proven track record of such foresight and innovation, going beyond traditional metrics to assess a candidate's potential to drive growth and adaptation in an ever-changing market landscape.

Specialist executive search firms benefit from deep market insights and extensive networks and can offer significant advantages, especially when looking for executive candidates with specific skills in regulatory compliance, sustainability practices, and innovation in the beverage industry. Executive search firms excel in finding candidates with these niche skills, offering businesses a strategic advantage. These firms can navigate the competitive landscape effectively, presenting a compelling narrative to potential candidates about your company's vision, values, and strategic objectives.

Driving Innovation: Best Practices from Industry Leaders

Innovative leaders in Australia's beverage industry are setting the pace, leveraging technology, and prioritising sustainability and health. But innovation isn’t just about new products. The digital transformation sweeping across industries presents both challenges and opportunities for the beverage sector. From leveraging AI for product development to harnessing data analytics for consumer insights, the need for digital literacy at the executive level has never been more critical. Executive search firms can pinpoint leaders with the necessary digital acumen, ensuring that your company not only stays competitive but also leads in the adoption of new technologies. The key to their success lies in a clear vision, strategic agility, and a commitment to fostering a culture that embraces change and innovation.

Rethinking Executive Search and Talent Acquisition

The executive search and talent acquisition process in Australia's beverage industry often requires a nuanced, strategic approach that aligns with the beverage sector's unique challenges and opportunities. By understanding the aspirations of executive candidates in 2024, focusing on work-life integration, purpose-driven roles, and the importance of technology and innovation, organisations can build a stronger, more resilient leadership team capable of navigating the complexities of the modern market.

As we look to the future, it's clear that the beverage industry in Australia will continue to evolve, driven by consumer demands for health, sustainability, and innovation. By carefully considering the approach to executive recruitment, whether through internal channels or by partnering with an executive search firm, businesses can ensure they are well-positioned to meet the challenges of today and seize the opportunities of tomorrow.

Beyond Hiring: The Power of Data in Crafting the Future of FMCG Leadership

debbie@elr.net.au (Debbie Morrison) — Thu, 15 Feb 2024 20:07:08 GMT

The seismic shift towards data-driven decision-making is not just a trend; it's revolutionising how we identify, assess, and select the leaders of tomorrow. At the heart of this transformation lies the potent combination of Artificial Intelligence (AI) and analytics, tools that are reshaping the very fabric of executive search.

The Power of Data in Executive Search

The premise is straightforward yet profound: In a world inundated with information, the ability to sift through, analyse, and draw meaningful insights from data is invaluable. For executive search firms, this capability ensures a more strategic, efficient, and ultimately successful placement of top-tier talent. But what does this data-driven approach entail, and why is it so crucial in identifying exceptional leadership talent?

Leveraging Data and AI in Recruitment

AI and data analytics serve as the linchpins of modern recruitment tools, offering unprecedented precision in CV screening and interview transcript analysis. These technologies enable firms to parse through thousands of candidate profiles, identifying those with the precise skill sets and potential for leadership that FMCG companies require. This meticulous matching process is not just about efficiency; it enhances the quality of hires by minimising biases, promoting diversity, and ensuring a fit not just for the role today, but for the challenges of tomorrow.

The Dual Role of Data for Executives and Search Firms

The parallels between leveraging data for executive decision-making and its application in executive search are striking. Just as a data-driven CFO navigates the complex interplay of financial, operational, and strategic factors to steer their organisation towards sustainable growth, so too does a data-informed executive search firm navigate the vast talent pool to pinpoint the leaders who can guide an organisation to its strategic objectives.

The Synergy of Data and Human Insight

While the advantages of a data-driven approach are manifold—speed, accuracy, and a broader talent pool—it's crucial to recognize that data and AI do not replace the nuanced skills and expertise of specialist executive search professionals. Instead, they enhance the process, enabling faster, more informed decision-making from a wider array of potential candidates. This synergy allows search firms to provide their clients with not just any leaders, but the right leaders for their specific challenges and aspirations.

Understanding Market Trends and Competitor Analysis

Incorporating data-driven market insights into the strategic executive talent planning and acquisition process extends far beyond the hiring phase. It encompasses understanding market trends, competitor analysis, and the evolving demands of the FMCG sector to not only attract top-tier talent but also to retain and nurture this talent effectively. This holistic approach ensures that organisations are not just reactive but proactive in their talent management strategies, positioning themselves for long-term success and sustainability.

Leveraging Market Insights

The FMCG sector, known for its rapid pace and high competition, is also subject to evolving consumer preferences and technological advancements. Data-driven market insights allow firms to anticipate these changes, understanding how they impact the skills and leadership qualities needed for tomorrow's leaders. For example, an analysis might reveal a growing demand for leaders who can drive digital transformation or implement sustainable practices, shaping the criteria for future executive searches.

Competitor Analysis

Data analytics can also provide valuable insights into competitors' talent strategies, offering a benchmark for what successful leadership looks like within the industry. This information is critical for organisations aiming to not only match but exceed their competitors' capabilities. By understanding the leadership profiles, cultural fit, and strategic priorities of successful competitors, firms can refine their own talent acquisition and development strategies to ensure they attract and retain individuals who can provide a competitive edge.

Real-World Impact: Statistics Speak

Recent studies underscore the effectiveness of data-driven recruitment. A report by LinkedIn reveals that 55% of talent professionals globally are now prioritising data-driven decision-making to enhance recruitment efficiency and outcomes. Moreover, companies embracing data-driven recruitment strategies report a 75% improvement in their recruiting efficiency and a significant boost in the quality of candidates they attract (source: LinkedIn Talent Solutions, 2023).

Advantages for Employers

For employers, the implications are clear. The integration of data analytics and AI into the executive search process not only speeds up recruitment but ensures that the selected candidates are the best fit for their strategic goals and organisational culture. This leads to stronger leadership teams, reduced turnover, and, ultimately, a competitive edge in the fast-paced FMCG sector.

Talent Retention and Development

The benefits of a data-driven approach extend into executive talent retention and development, areas crucial for maintaining a competitive advantage in the FMCG sector. By analysing data on executive performance, engagement, and career progression, organisations can identify patterns and predictors of retention and high performance. This enables the creation of personalised development programs, targeted retention strategies, and a deeper understanding of the leadership qualities that correlate with long-term success in the company.

Strategic Workforce Planning

Data-driven insights support strategic workforce planning by forecasting future talent needs and identifying potential skill gaps before they become critical. This foresight allows organisations to develop internal talent, source new skills proactively, and ensure that the leadership pipeline is aligned with the strategic direction of the business. For instance, if data indicates a shift towards e-commerce, organisations can prioritise the acquisition and development of digital leadership skills.

Enhancing Diversity and Inclusion

A data-informed approach also enhances diversity and inclusion efforts in executive search and talent management. By analysing data on the demographic makeup of the leadership team and workforce, companies can identify areas of underrepresentation and develop targeted strategies to address these gaps. This not only ensures compliance with increasing regulatory requirements but also enhances organisational resilience, innovation, and market understanding by bringing diverse perspectives to the leadership table.

Continuous Learning and Adaptation

Finally, a data-driven strategy facilitates continuous learning and adaptation in the talent management process. By regularly analysing outcomes, such as the success rate of placements, performance of hires, and the impact of leadership changes on business performance, organisations can refine their executive search and talent management strategies over time. This iterative process ensures that the approach remains aligned with the changing needs of the business and the market, driving sustained success.

The Future of Executive Search

As we look to the future, the role of data in shaping the landscape of executive recruitment cannot be overstated. Firms such as ELR Executive that harness the full potential of this data-driven revolution will not only lead the way in executive search but will also play a pivotal role in shaping the leadership of the world's leading companies.

The fusion of AI and data analytics with the human expertise of executive search professionals offers a compelling blueprint for the future of leadership acquisition. It's a partnership that promises not just to fill leadership roles but to forge the path for companies to navigate the complexities of the modern business environment successfully.

For those in leadership positions within the FMCG sector, the message is clear: Embrace the data-driven revolution, and secure your place at the forefront of tomorrow's executive leadership landscape by partnering with a data-driven executive search firm.

New Year's Resolutions: A Strategic Blueprint for Boards and C-Suite Executives in the Food & Beverage Industry

debbie@elr.net.au (Debbie Morrison) — Sun, 07 Jan 2024 18:52:58 GMT

The advent of a new year often brings with it the tradition of setting resolutions, a practice that extends into the professional realm, particularly for leaders in dynamic sectors like the Food & Beverage industry. For boards and C-suite executives, 2024 presents an unprecedented opportunity to redefine leadership and organisational goals through the lens of micro-resolutions - small, manageable changes that can lead to significant outcomes.

Embracing Micro-Resolutions for Personal Growth

Why Start Small?

In an industry as fast-paced and ever-evolving as Food & Beverage, large, sweeping resolutions can often be daunting and less feasible. This is where micro-resolutions come in. They are about making small, incremental changes that are easier to stick to and can lead to larger, more sustainable impacts over time.

What Can Executives Do?

Boards and C-suite executives should start by identifying key areas for personal growth and professional development. This could range from enhancing industry knowledge, improving leadership skills, or adopting new technology trends. The key is to break these down into smaller, actionable steps. For instance, instead of broadly aiming to 'improve leadership skills', set a micro-resolution to 'mentor a team member bi-weekly'.

Staying on Track

Regular self-assessment is crucial. Executives should schedule monthly check-ins to evaluate their progress and make adjustments as needed. This approach ensures that resolutions are adaptable and aligned with evolving personal and professional landscapes.

Setting Teams Up for Success

Fostering a Culture of Continuous Improvement

Leaders in the Food & Beverage industry must also focus on setting their teams up for success. This involves creating an environment that encourages continuous learning and improvement.

How to Achieve This?

Promote Skill Development: Encourage team members to set their own micro-resolutions focused on skill development. This could be learning a new software, enhancing customer service skills, or understanding the latest food safety regulations.
Create Collaborative Goals: Align team micro-resolutions with broader organisational objectives. For instance, if a company's goal is to reduce waste, a team micro-resolution could be to implement a new recycling program.

The Role of Feedback

Regular feedback is essential. Leaders should provide constructive feedback to help team members stay on track with their micro-resolutions and recognize their achievements, thereby fostering a positive and motivated workforce.

Aligning New Opportunities with Micro-Goals

Assessing Leadership Opportunities

For executives considering new job opportunities, aligning these with micro-goals is vital. This approach allows for a more strategic assessment of whether a new role aligns with personal and professional objectives.

Key Considerations:

Cultural Fit: Does the organisation's culture align with your values?
Growth Opportunities: Are there opportunities for professional development that align with your micro-resolutions?
Impact Potential: Can you make a meaningful impact in this role?

Making the Decision

Before making a move, leaders should evaluate the potential role against their set micro-resolutions. If the opportunity advances these goals, it can be a strong indicator that the role is a good fit.

Supporting Staff Development with Micro-Goals

Nurturing Talent in the Food & Beverage Industry

The Food & Beverage industry is highly competitive, and retaining top talent is crucial for success. Executives can play a key role in this by supporting the professional development of their staff through micro-goals.

How to Implement:

Individual Development Plans: Work with team members to create personalised development plans that include micro-resolutions.
Learning Opportunities: Provide resources and opportunities for learning, such as workshops, seminars, or online courses relevant to the Food & Beverage industry.

Ensuring Optimal Performance

To ensure optimal performance, executives should regularly monitor the progress of these development plans and adjust as necessary. Recognizing and rewarding achievements related to these micro-goals can also significantly boost morale and productivity.

Conclusion: A Year of Transformation

As we step into 2024, the emphasis for boards and C-suite executives in the Food & Beverage industry should be on flexibility, adaptability, and continuous improvement. By setting and pursuing micro-resolutions, leaders can not only enhance their own professional growth but also drive their teams and organisations towards greater success.

The Importance of Candidate Experience in Executive Hiring: Crafting a Brand Through People

debbie@elr.net.au (Debbie Morrison) — Mon, 27 Nov 2023 19:45:01 GMT

In executive hiring, the nuances of the candidate experience often spell the difference between attracting exceptional leadership talent and settling for mediocrity.

As companies compete fiercely for skilled leaders, the importance of a positive candidate experience has moved from a 'nice-to-have' to a critical component of an organisation's employer brand. But what makes this experience so pivotal in executive hiring, and how can it shape your company's future?

In the high-stakes arena of executive hiring, particularly in dynamic sectors like consumer goods and food & beverage, the candidate experience isn't just a step in the process; it's a pivotal chapter in your organisation's story.

As companies vigorously compete for the very best leadership talent, the nuances of this experience transition from a 'nice-to-have' to a decisive factor in shaping your employer brand.

It’s about more than filling an executive position; it’s about attracting a visionary capable of steering the organisation towards uncharted territories of innovation, sustainability, and customer engagement.

This journey, often undervalued, is where your organisation's narrative meets the aspirations of leading professionals. It's not merely a procedural pathway; it's a golden opportunity to communicate your values, culture, and vision to those who can amplify them.

First impressions and sustained interactions make or break crucial decisions, understanding and optimising the candidate experience is not just beneficial; it's essential for securing the right leadership that aligns with and propels your company's ambitions forward. So how can boards ensure the candidate experience is positively contributing to their hiring objectives?

First Impressions Count: Crafting the Initial Touchpoints

The adage "You never get a second chance to make a first impression" holds profound truth in executive recruitment. The initial touchpoints between a prospective candidate and an organisation set the stage for the entire recruitment journey. This phase includes the outreach strategy, the clarity, and appeal of job descriptions, and the professionalism in early communications.

A LinkedIn report revealed that 69% of professionals agree that a company's reputation as an employer is essential when considering a new job. This statistic underscores the significance of first impressions in the recruitment process. When reaching out to potential candidates, it’s crucial that organisations convey their values and culture through every interaction, starting with the job description itself.

The position description or hiring brief should be more than a list of responsibilities and qualifications; it should narrate the story of your organisation, its vision, and where the candidate fits into this picture. It should feel inviting, engaging, and reflective of the company's ethos.

A compelling position description is a unique opportunity to make a powerful first impression, one that not only informs but also captivates potential candidates. It’s about storytelling — conveying the narrative of your organisation, its vision, and how the candidate can be an integral part of this journey.

Crafting the Narrative

Start with Your Company’s Story: Begin the position description by painting a vivid picture of your organisation's history, mission, and values. This isn’t just about facts and figures; it's about sharing your ethos and the passion that drives your company forward.

Vision Casting: Clearly articulate where your company is headed. Candidates, especially at the executive level, want to know they're joining a forward-thinking and evolving organisation. Share your vision for the future and how the role they are applying for will contribute to this vision.

Role within a Story: Describe the role not just in terms of responsibilities but as a part of your company's larger narrative. How does this role contribute to the company's goals and objectives? For example, “As our Chief Technology Officer, you will be the driving force behind our technology strategy, shaping the future of innovative solutions that empower thousands of businesses worldwide.”

Culture and Fit: Emphasise the cultural aspects of your workplace. What is the work environment like? How does the team interact? What are your core values? This is particularly crucial for executive roles, as cultural fit is paramount.

Engage with Authenticity: Avoid jargon and overly complex language. The tone should be professional yet conversational, giving a sense of the human element behind the corporation.

Transparency and Communication: Building Trust with Candidates

Clear and consistent communication throughout the hiring process isn’t just a courtesy; it’s a cornerstone of building trust with candidates. A CareerBuilder survey found that 81% of job seekers say continuous communication is essential to keep them in the loop. This transparency is even more crucial when dealing with executive-level positions, where the stakes and expectations are significantly higher.

Communicating openly about the company's expectations, the specifics of the role, and the culture helps candidates understand what it would be like to work at your organisation. Regular updates about their application status and detailed feedback demonstrate respect for their time and effort, fostering a positive perception of your brand regardless of the outcome.

The Interview Experience: Reflecting Company Culture

The interview process is a mirror reflecting the company's culture and values. For executive roles, where the fit is as much about leadership style and cultural alignment as it is about skills, the interview process becomes even more critical.

It’s not just what you ask, but how you ask it. The structure of the interview, the demeanour of the interviewers, and even the setting can speak volumes about your organisation. A Harvard Business Review article emphasises the importance of interviewer training to ensure they can effectively assess candidates while also being ambassadors of the company culture.

Moreover, incorporating elements like meeting with potential team members or a tour of the office can provide candidates with a tangible sense of the working environment and ethos. Such experiences are invaluable in helping them visualise their future with the company.

Feedback and Follow-Up: Demonstrating Respect and Professionalism

Post-interview communication is often where companies falter. Providing constructive feedback, regardless of the hiring decision, is a practice that many organisations overlook. A survey by Glassdoor indicated that 94% of job seekers want to receive feedback after an interview. For executive roles, where the professional stakes are higher, this feedback becomes even more critical.

Feedback should be timely, specific, and constructive. It should aim not only to inform the candidate of their status but also to provide insights that can aid their professional growth. Such practices foster a reputation for respect and professionalism, enhancing your employer brand.

Onboarding and Integration: Beyond the Hiring Decision

The journey doesn’t end with the acceptance of the job offer. Onboarding and integration are where the promises made during the recruitment process are put to the test. A structured onboarding process for executive hires is crucial. This process should not only cover the functional aspects of the new role but also immerse the new hire in the company culture and introduce them to key stakeholders.

According to SHRM, organisations with a strong onboarding process improve new hire retention by 82% and productivity by over 70%. For executives, a tailored onboarding experience that addresses their unique role and influence within the organisation can significantly impact their effectiveness and longevity in the role.

The candidate experience in executive hiring is a powerful tool that shapes your organisation's employer brand. It’s about crafting a journey that reflects your company’s values, culture, and vision. From the first touchpoint to the final onboarding steps, each phase of the recruitment process needs to be handled with care, professionalism, and a keen understanding of what top-tier candidates seek in their next role.

The Strategic Role of Executive Search Firms

Specialist executive search firms bring a wealth of expertise, particularly in the nuanced and high-stakes world of C-suite recruitment. Their understanding of the market dynamics, coupled with an extensive network of potential candidates, positions them uniquely to guide organisations through a meticulously tailored hiring process.

One of the key strengths of these firms lies in their ability to create a compelling first impression. This is crucial in industries where brand perception and leadership are deeply intertwined. Executive search firms excel in crafting personalised, direct, and targeted outreach strategies. They don’t just present a position description; they tell the story of your company, its vision, ethos, and the potential impact the candidate can have. This narrative is vital in captivating the attention of high-calibre executives, who are often not actively seeking new opportunities but would be open to a compelling proposition.

In the consumer goods and food & beverage industries, where trends, consumer preferences, and sustainability issues are constantly reshaping the landscape, the ability to succinctly and powerfully convey a company's vision and values is invaluable. Executive search firms facilitate informative and confidential discussions that not only highlight the opportunity at hand but also align it with the aspirational goals and values of potential leaders.

Creating a Narrative That Resonates

The ability to craft a compelling narrative can only come through and in-depth understanding of both the company’s needs and the candidate's motivations and strengths. It’s about positioning your company not just as a workplace but as a platform where transformative leadership can thrive, particularly in industries driven by innovation and consumer satisfaction.

By having these focused and strategic conversations, executive search firms ensure that the potential leaders are engaged and intrigued from the outset. This approach is particularly effective in the consumer goods and food & beverage sectors, where leadership demands a blend of creativity, strategic thinking, and an innate understanding of consumer behaviour.

Setting the Stage for Long-Term Success

Furthermore, the role of executive search firms doesn’t end with the hiring. They often play a crucial part in the onboarding and integration process. Their deep understanding of both the candidate and the company puts them in a unique position to facilitate a smooth transition, setting the stage for long-term success. This aspect is particularly critical in executive roles, where early alignment with company culture and strategic objectives can significantly impact performance and team dynamics.

Assessments in Executive Hiring: A Catalyst for Excellence and Inclusivity

debbie@elr.net.au (Debbie Morrison) — Sun, 05 Nov 2023 20:56:46 GMT

The landscape of executive hiring is undergoing a significant shift. No longer do traditional methods of evaluating candidates based purely on past experience, credentials, gut feelings or networking prowess solely determine the suitability of an executive. The modern-day executive's role is complex, multifaceted, and constantly evolving. In an era when companies are striving to break past traditional norms, the role of objective assessments in executive hiring has become pivotal. Why? Let's delve deep.

A Shift Beyond Technical Prowess

For years, hiring for executive roles focused on technical acumen, years of experience, and proven track records. While these are undeniably crucial, one cannot ignore the underlying facts that drive an executive's actions: their personality traits, cultural fit, and alignment with a company's core values.

While a resume can tell you about past roles and achievements, psychometric assessments, as highlighted in the context provided, give insights into adaptability, motivations, and potential cultural synergies or clashes. They go beyond what candidates have done to predict what they might do in unfamiliar terrains or challenging scenarios.

The case for assessments goes beyond measuring technical skills. A study by Harvard Business Review found that 80% of employee turnover can be attributed to bad hiring decisions, many of which are the result of cultural misalignment. Assessments help identify these potential pitfalls early in the process.

The Nuances of Executive Assessments

Beyond the general psychometric tests, executive assessments delve deep into personality profiling and cultural fit. Instruments such as the DiSC, 16 PF, FIBRO-B, and Myers Briggs Type Indicator have revolutionised the way we view potential hires. These aren’t the generic personality tests that were popular in past decades. They are intricate tools that spotlight behavioural tendencies, leadership styles, decision-making processes, and more.

There's a broad spectrum of tools available for executive assessments, ranging from cognitive ability tests to in-depth personality profiling.

Other popular assessments include:

Hogan Assessments: These offer insights into a person's character, reputation, and business-related motives.
Gallup StrengthsFinder: Concentrates on an individual's top talents, offering organisations a deep dive into what makes their executives 'tick'.

However, the magic happens when these theoretical measurements from assessments are paired with live interviews by experts who can interpret and provide context to the data. This amalgamation of data-driven insights and human intuition offers a holistic view of the candidate, enabling better decisions regarding cultural alignment, onboarding strategies, and potential development areas.

Guiding the Boardroom

Boards play a crucial role in the hiring process. Their involvement ensures that executive hires align with the company's larger vision and mission. But when should they consider including executive assessments in the process?

Simply put, always. Whether you’re hiring for an existing position or a new role such as Chief Sustainability Officer or Chief Digital Transformation Officer, the need for comprehensive insights remains consistent. Objective assessments ensure that even if the role didn't exist a decade ago, the board has the tools to predict how a candidate will shape and grow with the role.

Boards and Executive Assessments: The Perfect Collaboration

For boards, the responsibility lies in identifying the right type of executive assessment. Start by getting clear on the company's core values and the specific attributes that would complement those values.

The ideal time for boards to think about including executive assessments? The moment succession planning or expansion comes into play. Being proactive, rather than reactive, ensures that the hiring process remains thorough, consistent, and poised to identify the best candidates for the role.

The Double-Edged Sword

Now, there's no denying the depth that executive assessments add to the hiring process. But, a pressing question arises: Can these assessments deter potential talent? The answer is, unfortunately, yes. Some high-calibre candidates might view assessments as impersonal or redundant, especially if they're already well-established in their fields.

To counteract this, boards need to communicate the value and rationale behind these assessments clearly. Transparency is key. If a candidate understands that the intent is to ensure a mutual fit – benefiting both the employee and the employer – they're more likely to participate willingly. Refusal might also indicate a candidate’s resistance to adaptability or new methodologies – vital insights for the board.

It speaks volumes about both the employer and the candidate. For employers, it showcases a commitment to not just hiring the right skill set, but also the right mindset. For candidates, the willingness to undergo such assessments shows adaptability, openness, and a commitment to aligning with a company's ethos.

The Role of Executive Search Firms

Executive search firms can be invaluable allies in this journey. Acting as intermediaries, their role goes beyond headhunting; they educate potential hires about the company's vision and why assessments are an integral part of the hiring process. They can help communicate the importance and benefits of these assessments to candidates, ensuring understanding and willingness. Their expertise ensures that assessments are presented not as hurdles, but as tools for mutual discovery. Moreover, these firms can assist in customising assessment strategies for specific roles, industries, or company cultures, ensuring relevance and precision.

They can also provide feedback, helping candidates understand areas of strength and potential growth, turning a hiring exercise into a developmental opportunity.

Recent Data That Speaks Volumes

Let's turn our attention to some compelling numbers:

A recent study by the Harvard Business Review found that companies that employed rigorous, objective methods for selecting executives enjoyed a staggering 213% increase in market capitalization over a two-year period post-hire, compared to their counterparts. This isn’t mere coincidence; it’s testament to the power of informed, data-driven hiring practices.
According to a McKinsey report , companies in the top quartile for gender diversity on executive teams were 21% more likely to outperform on profitability. But how does one ensure genuine diversity? Through unbiased, objective assessments.
A study from SHRM reveals that the average cost of a bad hiring decision can equal 30% of the individual’s first-year potential earnings. With executive salaries being sizable, the financial implications of a hiring misjudgment can be significant. Assessments can reduce this risk considerably.

The Way Forward

In an age of information, relying purely on intuition or past accolades is not just risky; it’s a missed opportunity.

Objective assessments in executive hiring are more than just a trend; they're a reflection of the evolving corporate ecosystem. When used judiciously and transparently, they can unlock unparalleled insights, ensuring that your next executive hire is not just good, but truly great..By focusing on personality profiling and cultural fit, companies not only ensure they're bringing in the right skills but also the right perspectives, values, and visions.

As the business landscape evolves, so too should our hiring methodologies. Embrace assessments, and let data guide the way to better, more inclusive hiring decisions.

Addressing The Hidden Biases in Executive Hiring

debbie@elr.net.au (Debbie Morrison) — Tue, 24 Oct 2023 20:38:37 GMT

In the corridors of corporate power, the recruitment and selection of executives has traditionally been a carefully curated process. While this careful approach is commendable, many executive teams and boardrooms still lack the rich tapestry of gender, racial, and cultural diversities that their companies profess, potentially jeopardising the richness of diversity and the competitive advantage it brings to leadership teams.

For decades, businesses have hailed the importance of diversity, and the values of equal representation and inclusivity. While overt discrimination might no longer be as rampant, the subtle nemesis of unconscious bias still plays a pivotal role. As we unravel the fabric of executive hiring processes, we discover hidden biases which can significantly impact business growth, performance, and the cultivation of a diverse leadership team.

Unconscious Bias in Executive Hiring: What It Is and Its Implications

At its core, unconscious bias refers to the preferences and prejudices we hold without awareness. It's an inherent human trait, driven by our brain's need to categorise and make quick judgments based on past experiences.

What’s alarming is that such biases, more often than not, aren’t the result of conscious discrimination. They stem from deep-seated stereotypes or societal norms that we've absorbed over time. When left unchecked and translated to hiring, these biases can have detrimental effects, leading to a homogenous leadership team, which in turn has implications for business growth and performance.

A study by Harvard Business Review highlighted that despite equal qualifications, a candidate's gender, name, or even hobbies can influence hiring decisions. 1 When biases creep into executive hiring, they limit the talent pool, skewing it towards candidates that 'look' or 'feel' right, rather than those who are objectively the best for the job.

From a business perspective, this is concerning. McKinsey's landmark study found that companies with more diverse executive teams are 25% more likely to outperform their peers on profitability. When companies overlook diverse candidates due to hidden biases, they're not just bypassing talent—they're missing out on potential profits and innovative ideas.

How Boards Can Identify and Address Bias

Self-Awareness and Training: The first step to combating unconscious bias is recognizing its existence. Boards must commit to regular training that highlights the different forms of bias, from affinity bias (preferring those similar to ourselves) to confirmation bias (focusing on information that confirms our existing beliefs).

Diverse Hiring Panels: Having a diverse group of individuals involved in the hiring process can help counteract individual biases. The broader the range of perspectives, the less likely a single biassed view will dominate.

Standardised Interview Processes: Instead of free-form interviews, boards can employ a standardised set of questions and evaluation metrics. This reduces the influence of a candidate's background or extraneous details.

Anonymous Application Processes: Some companies have started using processes where names, genders, and other potentially bias-triggering information are removed from applications.

Preventing Bias: Proactive Measures

While identifying biases is crucial, prevention is better than cure. Boards can employ the following strategies:

Diversify the Decision-making Team: Ensuring that the team responsible for executive hires is diverse can help bring in multiple perspectives and reduce the impact of individual biases.

Standardise Interviews: By asking every candidate the same set of questions in the same order, boards can ensure comparability and reduce the impact of biases on the decision-making process.

Use Data-driven Metrics: Instead of relying on gut feelings or intuition, boards can emphasise the use of data-driven metrics to assess a candidate's potential and fit.

The Role of Executive Search Firms in Limiting Bias

While internal measures are essential, sometimes, the inherent biases are so deep-seated that an external perspective becomes invaluable. Executive search firms have the expertise and frameworks to source and evaluate candidates objectively. Partnering with a renowned executive search firm can help in the following ways:

Expertise and Objectivity: These firms bring a level of expertise and objectivity to the hiring process, ensuring that the best candidates are shortlisted based solely on merit.

Wide-ranging Networks: They have extensive networks, allowing for a more diverse pool of candidates than a company might be able to source independently.

Bias-free Technologies: Many top-tier search firms employ advanced AI technologies that help in unbiased candidate sourcing and assessment.

A study from Harvard Business Review underscored the value of search firms, noting that companies that used such firms had leadership teams that were 30% more diverse than those who relied solely on internal recruitment processes.

The Urgency of Addressing Bias

The evidence is irrefutable. Addressing and eliminating bias in executive hiring isn’t just an ethical issue—it's a business concern. By limiting the pool from which leaders are drawn, companies can unintentionally stifle innovation, reduce market understanding, and even decrease financial returns.

For boards, the onus lies in not just recognising and preventing biases but in proactively seeking diverse leadership. Boards and executive teams must be introspective, willing to challenge their beliefs and processes. By doing so, they're not just promoting fairness but ensuring that their companies remain at the forefront of global business. So, the next time you sit in that boardroom, remember: diversity isn’t just a checkbox. It's a competitive advantage.

Curiosity in Leadership: The Power of Asking the Right Questions

debbie@elr.net.au (Debbie Morrison) — Sun, 08 Oct 2023 18:38:00 GMT

The qualities that define good leadership are shifting. No longer are leaders judged solely on their ability to implement a vision; the modern executive is a constant learner, driven by an innate sense of curiosity. As markets change and new technologies emerge, curiosity — the drive to ask questions and seek out new perspectives — is proving to be a pivotal trait for innovation and sound decision-making.

The Economic Mandate for Curious Leadership

The digital revolution, globalisation, and unprecedented global challenges (like complex supply chains and inflation bought on by the events of the war in Ukraine) have reshaped economies and business strategies. A report from McKinsey & Company suggests China’s slowing economic activity is the second most-cited risk to the global economy, with 52 percent of Asia-Pacific respondents saying it’s a concern.

Furthermore, the very nature of work itself has changed irrevocably. McKinsey & Company’s State of Organizations Survey suggests that more than half of respondents believe remote work will become more common (leaders, managers, and employees are still grappling with the effects of this broad behavioural upheaval. Organisations have been forced to reexamine foundational norms: Where do employees work? When do employees work? How do employees work?

Indeed, according to McKinsey, surveyed leaders across Asia-Pacific view their economic outlook as less positive than it was 6 months ago suggesting further challenges as we move into 2024. But what has this got to do with curiosity?

According to a recent Harvard Business Review article , companies led by curious leaders are 30% more likely to encourage risk-taking in the pursuit of innovation. Moreover, these companies were found to have a 10% higher growth rate compared to their less-curious counterparts. Can curiosity really provide a competitive edge?

Why Curiosity?

But why does curiosity matter so much? At its core, curiosity is about wanting to know more. It’s about confronting what you don't know, and not just relying on what you do. In leadership, this translates to a few key benefits:

Enhanced Decision-making: By seeking diverse perspectives, curious leaders reduce their blind spots. They're less likely to be caught off-guard by shifts in the market or changes in customer behaviour.
Stimulating Innovation: Curious leaders are always on the lookout for the next big thing. Their natural inclination to explore often leads to unique and groundbreaking solutions.
Building Better Teams: Leaders with a curious mindset value diversity and understand that different experiences and perspectives lead to richer discussions and more comprehensive solutions.

Spotting Curiosity in Leadership Candidates

So, given the importance of curiosity, how can boards and hiring managers identify this trait in potential candidates? Here are a few strategies:

Behavioural Interviewing: Instead of asking candidates to simply list their accomplishments, ask them to narrate a situation where they had to learn something new to solve a challenge. Their approach to unfamiliar territory can be quite revealing.
Recommendations and References: Often, colleagues and direct reports can offer insights into a leader's inquisitiveness. Does the candidate foster an environment where questions are encouraged?
Continuous Learning Indicators: A history of pursuing additional courses, certifications, or self-initiated projects can be indicative of a curious mind.

Cultivating Curiosity

If you're a leader looking to enhance your curiosity quotient, here's some good news: curiosity can be cultivated. Here's how:

Adopt a Growth Mindset: Coined by Carol Dweck, a psychologist at Stanford University, a growth mindset champions the belief that abilities and intelligence can be developed. Embrace challenges, persist in the face of setbacks, and understand that effort is the path to mastery.
Diversify Your Inputs: Read books, attend seminars, or listen to podcasts outside of your domain. Cross-pollinating ideas from various fields can offer fresh perspectives.
Encourage Questions: Cultivate an environment where team members feel comfortable challenging the status quo. The next big idea could come from an unexpected place.
Engage in Reflective Practices: Allocate time for introspection. Journaling, meditation, or simply taking a walk can offer the mental space required to connect disparate ideas.

The FMCG business landscape is one of volatility, uncertainty, complexity, and ambiguity. In such an environment, curiosity isn't just an asset; it's a necessity. The willingness to question, to probe, and to seek new horizons is what will differentiate the next generation of visionary leaders.

By valuing curiosity — both in themselves and in their teams — leaders are not only fostering a culture of innovation but are also ensuring that their organisations remain resilient and agile in the face of ever-changing economic winds. The leading FMCG brands are in the hands of those who stay curious, and lead with questions.

Micromanagement in the C-Suite: How to Spot it and What Boards Should Do About It

debbie@elr.net.au (Debbie Morrison) — Tue, 12 Sep 2023 21:45:00 GMT

It's no secret that micromanagement is often seen as the bane of innovation and creativity in companies. From entry-level employees to middle managers, the stifling nature of micromanagement is a frequently lamented phenomenon. However, one area where this management style is often overlooked, yet perilously influential, is in the C-suite. If you think micromanagement is problematic at lower levels, its impact at the top tier of management can be exponentially more damaging.

1. Why Micromanagement in the C-Suite Matters

Micromanagement within the C-suite affects strategic decisions, company culture, and the overall direction of the organisation. When a CEO or CFO begins to dwell on minutiae, it signals to the rest of the organisation that they don't trust their teams or processes. Such a mindset, inevitably, trickles down.

According to a recent study by Accountemps found that as many as 59% of people have been managed by a micromanager at some point in their career. Of the people who reported working for a micromanager, 68% said it had decreased their morale, and 55% claimed it had hurt their productivity. A 2019 Gallup poll found that employees who feel they are micromanaged are 28% more likely to consider leaving their job. While this figure pertains to the broad spectrum of the workforce, consider the ramifications at the executive level: senior leadership disengagement, or worse, top talents abandoning ship, could prove catastrophic.

2. Spotting the Signs of Micromanagement in the C-Suite

Often, micromanagement at the c-suite level is subtle and masked as "due diligence" or "deep involvement." Here are some warning signs to be on the lookout for:

Incessant Detail-Orientation: It’s one thing for a CEO to understand the finer points of a project, but if they’re demanding daily updates on tasks that are typically managed several levels down, it's a red flag.
Decisional Bottlenecks: If most decisions, including the less significant ones, are pending top leadership's input, it hampers agility.
High Executive Turnover: While numerous factors can contribute to turnover, an abnormally high rate within senior ranks might suggest a challenging work environment spearheaded by micromanagement.
Frequent Bypassing of Hierarchies: If the CEO is consistently reaching out directly to middle management or entry-level employees, bypassing the respective heads, it may signal trust issues with senior leaders.

3. The Underlying Causes

Before diving into solutions, it's crucial to grasp the root causes. For the C-suite, the pressures are immense. Stakeholders, investors, and market dynamics require a finger-on-the-pulse approach. Still, when micromanagement sets in, it often stems from:

Insecurity: Whether due to prior failures, perceived threats from team members, or personal insecurities, some executives might use micromanagement as a defence mechanism.
Lack of Trust in the Team: Perhaps arising from past experiences, the inability to trust can lead executives to take everything upon themselves.
Perfectionism: An often-praised trait that, when taken to extremes, becomes counterproductive.

4. What Boards Should Do About It

Boards of Directors, given their governance role, have both the responsibility and authority to address C-suite micromanagement.

Open Dialogue: Initiate conversations with the concerned executive, aiming to understand their perspective. Instead of accusations, frame it as a shared responsibility to ensure the company’s success.
360-Degree Feedback: Implement a system where senior leaders receive anonymous feedback from their peers, subordinates, and even board members. Such systems, as revealed by a Harvard Business Review study , can help executives recognize and address their micromanaging tendencies.
Leadership Coaching: Consider bringing in executive coaches. They offer external perspectives and can provide tools and strategies to shift from micromanagement to macro leadership.
Redesign Decision Frameworks: If an executive is involved in too many decisions, it might be time to reassess which issues require C-suite intervention and which can be delegated.

5. A Glimpse into a Macro-Leadership Future

As we march into an era that lauds agile management, AI-driven decisions, and a focus on company culture, the tolerance for micromanagement, especially in the C-suite, shrinks.

A 2021 Deloitte study suggests that organisations adopting AI for decision-making processes outpace their competitors by 11% in terms of growth. This translates to a straightforward principle: empower systems and people, and the dividends will be palpable.

The strategic altitude that C-suite executives should operate at doesn't afford the luxury of micromanagement. It's a costly endeavour, both in terms of time and the potential quashing of innovative sparks. For boards and stakeholders, recognising and addressing this issue isn't just about fostering a pleasant work environment—it's a crucial move to ensure the organisation's robust, sustainable growth.

The Paradoxical Power of Adversity: Why Resilience Elevates Leadership

debbie@elr.net.au (Debbie Morrison) — Wed, 23 Aug 2023 21:45:00 GMT

In a world enamoured with success stories, it might seem counterintuitive to champion failure and adversity. However, if one delves deeper into the annals of great leadership, a surprising element emerges—resilience. There's a compelling case to be made that the crucible of setbacks and challenges actually moulds the most effective leaders. In this blog we explore why.

Our Love Affair with Success

For many, success is the ultimate goal. It's the indicator that one is competent, valued, and in control. But the road to true leadership often winds through valleys of failure. Thomas Edison, when developing the light bulb, once remarked, " I haven’t failed. I’ve just found 10,000 ways that won’t work.” If Edison lacked resilience, would we remember him today?

Leadership isn't about avoiding pitfalls; it's about navigating and growing from them.

Resilience as the Cornerstone of Effective Leadership

In the contemporary business world, leadership indicators have evolved beyond the mere ability to manage teams or hit financial targets. One such significant indicator, as underscored by research, is resilience. Here's a deeper look at why resilience is not only important but also transformative in the realm of leadership.

Resilience: More Than Just Bouncing Back

Resilience, as highlighted by the Harvard Business Review , isn't just about recovery; it's about thriving amidst adversity. And when it comes to leadership, this attribute can be the difference between a good leader and a great one.

The Science Behind Resilience and Leadership

A plethora of studies in organisational psychology have illuminated the undeniable link between resilience and an array of positive professional outcomes. Among these:

Heightened Job Performance: Resilient leaders tend to approach challenges as opportunities for growth. They adapt, evolve, and ultimately lead their teams to successes even in turbulent times.

Reduced Burnout: Burnout has become endemic in today's high-stress work environment. Resilient leaders, however, are better equipped to manage stress, ensure work-life balance, and thus mitigate the symptoms and effects of burnout.

Increased Job Satisfaction: Satisfaction isn't just derived from success; it's also about overcoming hurdles. Resilient leaders find fulfilment in navigating challenges, which translates to higher overall job satisfaction.

The Crucible of Adversity: Moulding Effective Leaders

Adversity isn't just a challenge; it's a classroom. It shapes leaders in multiple, profound ways:

Empathy as a Leadership Tool
Leaders who have navigated the stormy seas of professional or personal difficulties develop a heightened sense of empathy. This is more than just understanding or sympathising—it's about genuinely feeling the team's struggles.

Such empathetic leaders become invaluable assets for organisations. They foster environments where team members feel seen, heard, and understood. This creates a bedrock of trust, making teams more cohesive and more willing to take risks, confident in the knowledge that their leader understands and supports them.

Grit: The Silent Powerhouse
Angela Duckworth’s research on grit has revolutionised our understanding of success. Grit isn't just about raw strength or endurance; it's about maintaining passion and perseverance for goals that last a lifetime.

Adversity instils this very grit in leaders. Each failure, each setback, and each challenge faced and overcome adds another layer to a leader's reservoir of grit. Such leaders not only set high standards for themselves but also inspire their teams to adopt a similar attitude of unwavering commitment to their goals.

Innovation Born from Challenge
When traditional paths are blocked by obstacles, true leaders don't just look for another path—they create one. Adversity, in this sense, becomes a powerful catalyst for innovation.

Leaders forged in the furnace of adversity are not confined by conventional wisdom or traditional methodologies. They think outside the box, encouraging their teams to do the same. This culture of innovative thinking often leads to groundbreaking ideas, solutions, and strategies that set the organisation apart in a competitive marketplace.

The food & beverage industry is fraught with unpredictability and fierce competition. New businesses come and go, often within the span of just a year. Yet, the tales of resilience and redemption in this sector are incredibly inspiring. Let's dive into some real-world examples of individuals from the food & beverage industry who faced adversity head-on and emerged triumphant.

Howard Schultz: Starbucks

Before Starbucks became the global coffeehouse chain synonymous with morning routines, it faced its fair share of troubles. Howard Schultz, the chairman and former CEO, had a vision of turning Starbucks from a mere coffee bean seller into a café experience inspired by his travels in Italy. Schultz's proposal was initially rejected, leading him to leave and start his chain, Il Giornale. However, when Starbucks later faced financial difficulties, Schultz returned, acquired the company, and transformed it into the coffee empire we know today. Through this journey, Schultz's resilience and unyielding belief in his vision were evident.

Ben Cohen and Jerry Greenfield: Ben & Jerry’s

Ben & Jerry’s, a name synonymous with innovative ice cream flavours, was founded by childhood friends Ben Cohen and Jerry Greenfield. Before they struck gold with their ice cream parlour, they faced several setbacks. Both Ben and Jerry faced failures in their previous endeavours—Ben with several art-related ventures and Jerry with medical school rejections. Instead of succumbing to these setbacks, they took a $5 correspondence course on ice cream making and set up their first ice cream parlour in a renovated gas station. Their resilience and commitment to their brand, despite numerous challenges including big corporation competition and financial struggles, turned Ben & Jerry’s into a household name.

Sir Thomas Johnstone Lipton: Lipton Tea

Sir Thomas Lipton, the founder of the world-famous Lipton tea brand, was no stranger to adversity. Before he built his tea empire, Lipton, born to impoverished Irish-Scottish parents, worked in a number of low-paying jobs. He then decided to open his grocery store, and though it was successful, he faced stiff competition. To differentiate himself, Lipton decided to directly purchase tea from producers, reducing costs. He travelled to Sri Lanka and bought tea estates, ensuring the supply at a lower price. His resilience and innovative approach to addressing the challenge of competition led to the birth of the globally recognized Lipton brand.

Anita Roddick: The Body Shop

While The Body Shop might be more associated with cosmetics than food & beverage, its founder Anita Roddick's story of resilience in business is worth noting. Anita opened the first Body Shop in 1976 with the aim of making an income for herself and her two daughters while her husband travelled. Faced with limited resources, she used minimalistic packaging and championed the refilling of containers. Her genuine commitment to environmental issues and refusal to advertise gave her brand a unique identity. Despite facing heavy competition from big cosmetic brands and backlash for some of her unconventional decisions, Roddick's resilience made The Body Shop an international success.

Building Resilience

So, how can leaders cultivate resilience? It begins with a mindset that views failure not as a dead end but as a learning opportunity. Embracing failure requires courage, introspection, and a willingness to adapt.

Accepting Failure as Part of Growth: By accepting that failure is a natural part of growth and innovation, leaders can foster a culture that encourages risk-taking and creativity.

Celebrate Failures as Learning Opportunities: Instead of penalising mistakes, dissect them. What lessons can be learned? How can they inform future decisions?

Creating Supportive Environments: Fostering an organisational culture that supports risk-taking and learning from failure encourages everyone to push the boundaries of their potential.

Invest in Mental Wellness: Resilience is not just about endurance; it's about recovery. Support mental health initiatives that give leaders the tools to bounce back.

In the corporate lexicon, resilience is often misconstrued as mere endurance. It's time we viewed it for what it truly is—an invaluable trait, honed by adversity, that equips leaders with the empathy, grit, and innovation to lead effectively.

Resilience doesn’t just prepare leaders to weather the storm; it empowers them to change the world. As you chart your leadership journey, embrace adversity. For in its crucible, you'll find the very essence of transformative leadership.

Storytelling: The Unexplored Tool in an Executive's Arsenal

debbie@elr.net.au (Debbie Morrison) — Wed, 09 Aug 2023 06:56:07 GMT

If you've ever listened to someone talk and found yourself captivated by the story, you understand the deep-rooted power of storytelling. This innate ability to captivate, inspire, and transform is not merely reserved for poets, authors, or filmmakers. As an executive, you can harness this age-old art to inspire and engage both your employees and your customers.

The reality is, the corporate world is evolving. A linear, fact-based approach to communication, while important, is no longer enough. We often think of storytelling as an art, separated from the rigours of business. But what if we understood storytelling as not just art, but as a strategic tool?

A study from Stanford found that statistics combined with stories have a retention rate of 65-70%, compared to 5-10% for stats alone. That's a monumental difference. We remember stories, we're wired that way. So, when it comes to getting your message across, why not use the medium most suited to the human brain?

The Science Behind the Story

Neuroscientists have found that when we hear stories, our brain releases oxytocin – a hormone associated with empathy and connection. This doesn’t happen with just pure data. Stories allow your audience, whether it's an employee or a customer, to see themselves in the narrative, establishing a deeper emotional connection.

Moreover, according to Harvard Business Review , stories stimulate the brain in a way that turns listeners not just into information receivers, but also into participants. They live the story. This engenders a deeper level of engagement than mere presentations or spreadsheets could ever achieve.

Tangible Examples in the Business World

Let’s delve into some real-world examples. Consider Apple’s narrative around “Think Different”. It’s not just about computers or gadgets; it's about challenging the status quo and being unique. Apple doesn’t just sell products; they sell a story of innovation and standing out. This narrative has resonated deeply with both their employees and consumers.

Similarly, Elon Musk often paints a story of a sustainable future. When he talks about Tesla or SpaceX, he isn’t just talking about cars or rockets; he’s narrating a tale of humanity's quest for survival and progress. His employees aren't just working for a paycheck; they're part of an epic narrative to better the world.

Crafting Your Narrative

As an executive, you’re not just a manager; you're a leader. Leadership requires inspiration, and what better way to inspire than through storytelling? Here are some steps to help:

Find Your Core Message: What do you stand for? What does your company stand for? This isn’t about your product; it's about your purpose.
Be Authentic: People can spot a manufactured story a mile away. Your narrative should resonate with truth and genuineness. It’s okay to show vulnerability; it makes your story relatable.
Incorporate Real-life Examples: Instead of just presenting data, incorporate anecdotes. Did your product change someone’s life? Share that story. It will resonate far more than just sales figures.
Engage & Involve: Make your employees and customers part of the narrative. Highlight their stories. By doing this, they aren’t just passive listeners; they're active participants.

The Transformative Power of Story

Remember, as an executive, your role isn't just to manage processes but to lead people. And people, since time immemorial, have been moved by stories. If the facts and figures are the bones of your business, the story is its soul.

In a world drowning in data, a compelling narrative can cut through the noise, forging deeper connections and driving unparalleled engagement. Embrace the power of storytelling and watch as it not only enhances your brand but also turns your employees into passionate advocates and your customers into loyal followers.

The Imperative of Continuous Learning

debbie@elr.net.au (Debbie Morrison) — Wed, 02 Aug 2023 22:12:11 GMT

Understanding the Leadership and Communication Gap

How are you, as an executive, grappling with the rapidly evolving business landscape?

Perhaps you're navigating digital transformation, grappling with increasing market volatility, or working to harness the power of a more diverse and remote workforce. These challenges are significant, and there's a critical skill set at their heart: leadership and communication.

According to a 2023 PWC report 1 , 78% of organisations cite a gap in leadership and communication skills as a significant obstacle to their growth. But why does this gap exist, and how can it be addressed?

The world we operate in has changed dramatically. Traditional, authoritative leadership models don't necessarily resonate with today's workforce, which values transparency, empowerment, and ongoing dialogue. While they once provided a sense of order and consistency, these approaches are now perceived as rigid and unresponsive to the unique strengths and contributions of individuals. Today's employees seek transparency, empowerment, and open dialogue with their leaders. According to a 2022 Gallup study, teams led by managers who focus on their strengths are 14% more engaged, and business units with engagement scores in the top quartile experience 21% greater profitability source: Gallup .

In a rapidly evolving business landscape, fostering a culture of trust and open communication can lead to greater innovation and adaptability. IBM's 2020 global study on leadership demonstrated that companies which prioritise open and transparent leadership saw a 30% increase in their ability to innovate source: IBM . These are critical assets in a world where disruptive technologies and changing consumer expectations can quickly render established practices obsolete.

Failing to adapt to these expectations doesn't just affect morale—it impacts the bottom line too. Research from the Society for Human Resource Management (SHRM) reveals that the average cost of losing an employee is six to nine months' salary source: SHRM . Moreover, a 2019 Glassdoor survey indicates that 84% of employees would consider leaving their current jobs if offered another role with a company that had an excellent corporate culture source: Glassdoor .

The Role of Continuous Learning in Business Success

But how does continuous learning factor into all this? The answer is simple: businesses can't hope to succeed in today's volatile world without leaders who are learners first and foremost.

With the rate of change accelerating, it's no longer sufficient to rely solely on past experiences or existing knowledge. As per the 70:20:10 Learning Model 2 , nearly 70% of learning comes from tackling real-life challenges, 20% from interaction with others, and just 10% from traditional training programs. Today’s leaders need to be agile, always ready to learn from new situations and adapt their approach.

The Responsibility of Boards in Fostering Leader Development

The burden to nurture such a learning culture rests heavily on the boards. Why? Because developing leaders equipped to manage constant change is integral to long-term business success. But why should boards invest their resources in such endeavours?

Investing in personal development of leaders pays significant dividends. According to a study by the Center for Creative Leadership 3 , organisations with a strong learning culture outperform their peers in terms of innovation, quality, productivity, and customer satisfaction by up to three times.

Supporting Leaders in Enhancing Interpersonal and Leadership Skills

So how can boards support leaders in developing their leadership and interpersonal skills?

Executive coaching and leadership programs are one avenue. They offer targeted guidance and insight to help leaders adapt their styles to the changing workforce dynamics. Additionally, creating a culture of feedback and openness can ensure leaders are continually learning and refining their skills in real-time. As a board member, are you doing enough to foster leadership development?

Continuous Learning as a Core Element of Succession Planning

Succession planning should not be an afterthought either. It is a strategic business process that prepares an organisation for leadership transitions. Given the critical role continuous learning plays in leadership development, it should naturally be a core part of succession planning.

Companies that incorporate continuous learning into their succession plans have a clear advantage. They ensure a pipeline of leaders who are adept at adapting and learning, keeping the business always prepared for the future.

In the fast-paced, ever-changing business landscape of 2023, leaders must constantly learn, adapt, and grow. Boards that invest in developing these skills among their leaders, embedding them into their organisational culture and succession planning, are the ones most likely to succeed.

The question for you, as a board member or an executive, is this: are you ready to embrace the critical role of continuous learning in your business's future success?

Navigating Challenging Business Environments: The Importance of Commercially Astute Leaders

debbie@elr.net.au (Debbie Morrison) — Thu, 13 Jul 2023 06:51:44 GMT

Organisations are facing numerous challenges that can impact their growth and profitability. The Bega Group's recent property deal with Charter Hall serves as a stark sign of the times, highlighting the critical role of commercially astute leaders in successfully navigating these challenges. This blog explores the implications of the deal, sheds light on the dairy industry's challenges, and emphasises the significance of hiring the right leaders to steer organisations towards success.

Challenges in Australia’s Dairy Industry

The Bega Group operates in the dairy industry, which is currently facing several significant challenges. Firstly, Australian milk production has been on the decline, with a reduction of over 700 million litres in the past two years alone, amounting to a 9% decrease. This decline in milk production has a direct impact on Bega Group's operations, necessitating strategic decision-making to mitigate the effects.

Secondly, the intense competition for raw milk within the industry poses long-term challenges. With limited industry rationalisation, Bega Group expects this competition to persist beyond the current year. This scenario necessitates proactive measures to secure a reliable supply of raw milk and maintain profitability.

Lastly, the potential non-cash impairment of bulk dairy ingredient assets further adds to the industry's challenges. As the dynamics of the dairy market continue to evolve, commercially astute leaders must make informed decisions regarding the valuation and utilisation of these assets.

The Importance of Commercially Astute Leadership

In the face of these challenges, having the right commercially minded leaders in place becomes crucial for organisations like the Bega Group. These leaders play a pivotal role in reducing debt, supporting strategic direction, and ensuring sustainable growth.

Debt Reduction and Strategic Direction

The Bega Group's property deal with Charter Hall is a prime example of how commercially astute leaders can bolster the company's balance sheet. By divesting the property at 1 Vegemite Way in Port Melbourne for $114.6 million and leasing it back, Bega Group can reduce its debt while continuing operations. This deal was likely identified, structured, and brokered by leaders who possess a deep understanding of the financial landscape and strategic business opportunities.

Implications on Financial Performance

The successful execution of the property deal has positive implications for Bega Group's financial performance. The injection of funds aids in paying down debt and supports the company's strategic transition to a brand-focused organisation. Leaders with a keen eye for financial opportunities can identify such deals, evaluate their potential impact, and negotiate favourable terms that align with the company's objectives.

Overcoming Input Cost Increases

Commercially astute leaders are adept at navigating input cost increases, such as rising prices of raw milk, packaging, logistics, and energy. Bega Group's investment in continuous improvement programs, technology, and successful price increases demonstrate their ability to mitigate these challenges. Through effective cost management and strategic initiatives, leaders can maintain profitability even in the face of cost pressures.

Beyond Customer Loyalty

While customer loyalty is valuable, relying solely on it is not a sustainable strategy for success in most industries. Commercially astute leaders recognize the importance of continuously evolving and strengthening brands, diversifying product offerings, and exploring new markets. Bega Group's success in growing its white milk brands, convenience, and food service channels highlights the strategic vision and innovation required to remain competitive.

Attributes of Commercially Astute Leaders

Boards of directors seeking commercially astute leaders should consider the following key attributes and characteristics:

Financial Acumen
Leaders must possess a strong understanding of financial concepts, including cash flow management, investment strategies, and risk assessment. This expertise enables informed decision-making in complex financial environments.
Strategic Thinking
Leaders must demonstrate the ability to develop and execute long-term strategies aligned with the organisation's goals. They should be forward-thinking, adaptable, and capable of identifying opportunities amidst challenges.
Market Insight
Having a deep understanding of market dynamics, industry trends, and consumer behaviour enables leaders to make informed decisions and stay ahead of the competition.
Collaboration and Influence

Effective leaders foster collaboration across departments, build strong relationships with stakeholders, and influence decision-making processes. This skill set is vital in navigating complex negotiations and driving organisational growth.

Identifying Commercially Astute Leaders

Organisations can identify commercially astute leaders by expanding their networks and partnering with executive search firms. These firms specialise in identifying top talent and can provide access to a diverse pool of executives with the desired attributes. Furthermore, organisations should prioritise comprehensive assessments, including interviews, reference checks, and behavioural assessments, to evaluate candidates' suitability for the role.

The Right Time for Talent Pooling

Given the dynamic nature of today's business environment, organisations should proactively talent pool for commercially minded executives. This approach enables them to stay ahead of emerging challenges, capitalise on strategic opportunities, and maintain a competitive advantage. By developing a strong talent pipeline, organisations can ensure a smooth leadership succession process and minimise disruptions during critical transitions.

The Bega Group's property deal with Charter Hall serves as a powerful example of the critical role commercially astute leaders play in navigating challenging business environments. The dairy industry's decline in milk production, intense competition, and potential impairments underscore the need for leaders who possess financial acumen, strategic thinking, market insight, collaboration skills, and influence. By hiring the right leaders, organisations can reduce debt, support strategic direction, overcome input cost increases, and build sustainable profitability. In today's fast-paced business landscape, organisations must prioritise the identification and development of commercially astute leaders to ensure long-term success.

At ELR Executive we have over 20 years of experience helping FMCG and Food and Beverage organisations identify and attract the right talent to help achieve better business outcomes. If you'd like to learn more about how we can help you identify commercially astute leaders, speak to us today .

The Hidden Costs of Burnout: Why Leaders Should Prioritise Work-Life Balance

debbie@elr.net.au (Debbie Morrison) — Tue, 27 Jun 2023 21:56:29 GMT

Post-pandemic life has provided little respite for organisations, in fact macro-economic pressures have exacerbated an already demanding business landscape. Executives often find themselves caught in a relentless cycle of work, constantly pushing themselves to meet targets, drive growth, and deliver results. While dedication and commitment are essential for success, the cost of neglecting work-life balance can be detrimental not only to the well-being of executives but also to the overall productivity and profitability of their organisations. This article explores the hidden costs of burnout and why organisations should prioritise work-life balance for executives, presenting compelling evidence that demonstrates how a healthier work-life balance can actually increase productivity and profitability.

The food manufacturing industry poses unique challenges when it comes to providing employees with greater flexibility and work-life balance, particularly in environments where workers may be engaged in shift work on a production line. While the benefits of work-life balance apply universally, implementing flexible policies and practices in this industry requires careful consideration of operational requirements, safety regulations, and the specific needs of employees.

Flexibility vs. Freedom to Balance Work/Life Priorities

One of the key aspects of work-life balance is the ability to find a harmonious blend between professional responsibilities and personal life. Many organisations have embraced flexible work arrangements to address this issue, allowing employees to have more control over their schedules and the location of their work. While flexibility is often seen as the solution, it's important to distinguish it from freedom.

Flexibility refers to the ability to adjust working hours or work remotely occasionally, while freedom implies having autonomy and choice over how work is done. While flexibility is a step in the right direction, it often falls short of addressing the deeper issue of work-life balance. True work-life balance requires an environment where executives have the freedom to make decisions about their priorities, both in and outside of work, without feeling guilty or facing negative consequences.

When employees have the freedom to balance their work and personal priorities, they are more likely to experience higher job satisfaction, lower stress levels, and increased loyalty to their organisation. This autonomy fosters a sense of ownership and empowerment, leading to higher engagement and productivity. In fact, a study conducted by the American Psychological Association found that employees with greater autonomy reported higher job satisfaction and were less likely to experience burnout.

The Importance of Choice and Autonomy

Choice and autonomy are fundamental psychological needs that have a profound impact on employee well-being and organisational success. When individuals feel that they have control over their work and can make decisions aligned with their values and preferences, they are more likely to be motivated and committed.

Moreover, granting executives the autonomy to determine their work-life balance can lead to more engaged and loyal employees. According to a study conducted by the University of Warwick , happy employees are 12% more productive than their unhappy counterparts. By providing the choice to balance work and personal commitments, organisations can create a culture of trust and mutual respect, resulting in higher levels of employee engagement and retention.

Rethinking Productivity Metrics

Traditional productivity metrics often focus on hours worked, output quantity, or meeting tight deadlines. While these metrics may provide a superficial understanding of productivity, this narrow perspective fails to account for the quality of work, creativity, and innovation that are vital for long-term success. Nor does it capture the true value that employees bring to their organisations. Executives are not machines, and their value should not be reduced to the number of hours they spend in the office. Rethinking productivity requires shifting the focus from quantity to quality, from input to output, and from presenteeism to effectiveness.

A more holistic approach to measuring productivity, considering factors such as employee well-being, work satisfaction, and overall contribution to the organisation's mission offers a better window into true performance. Instead of measuring the number of hours an employee spends at their desk, leaders can focus on outcomes achieved, impact made, and value created. Emphasising results rather than mere effort encourages employees to work smarter, not harder and allows them to prioritise tasks that truly contribute to organisational goals.

Redefining productivity metrics sends a clear message that work-life balance is valued and that employees' well-being and contribution go beyond mere time spent at work. By recognising the importance of work-life balance and encouraging executives to take time for self-care, organisations can create an organisational culture that fosters productivity, innovation, and long-term success.

Shifting the Paradigm: The Benefits of Prioritising Work-Life Balance

Now that we've explored the hidden costs of burnout and the importance of work-life balance for executives, let's delve into the tangible benefits that organisations can reap by prioritising this crucial aspect.

Enhanced Productivity: Numerous studies have shown that overworked and burnt-out employees are more prone to errors, lack focus, and experience reduced cognitive abilities. In contrast, well-rested and balanced executives bring fresh perspectives, increased creativity, and improved decision-making skills to the table. Prioritising work-life balance enables executives to recharge and show up at work with renewed energy and vigour, ultimately driving higher levels of productivity.

Improved Employee Well-being: When executives are constantly juggling work demands and personal responsibilities, their mental and physical health suffer. Chronic stress and burnout not only impact individuals physically and emotionally but also have ripple effects on their performance and well-being. Prioritising work-life balance allows executives to prioritise self-care, reducing stress levels and promoting overall well-being. This, in turn, leads to increased job satisfaction, lower rates of absenteeism, and improved overall health.

Talent Attraction and Retention: In today's competitive job market, attracting and retaining high-performing executive talent is a constant challenge for organisations. Candidates are increasingly prioritising work-life balance and a supportive culture when considering potential employers. By prioritising work-life balance for executives, organisations can position themselves as employers of choice, attracting high-performing individuals who value healthy work-life integration. Furthermore, when executives experience a healthy work-life balance, they are more likely to stay with the organisation long-term, reducing turnover costs and ensuring continuity.

Enhanced Creativity and Innovation: Overworking and burnout stifle creativity and hinder innovation. When executives are constantly stretched thin and lacking time for reflection and rejuvenation, they are less likely to come up with innovative ideas or think outside the box. On the other hand, a balanced work-life allow executives the mental space and freedom to explore new possibilities, encouraging creativity and fostering a culture of innovation within the organisation.

Positive Organisational Culture: Prioritising work-life balance sends a powerful message to the entire organisation about the values and priorities of the company. When executives are encouraged to achieve a healthy work-life balance, it sets a precedent for the rest of the employees, creating a culture that values well-being, personal growth, and work-life integration. This positive culture, in turn, leads to higher employee morale, stronger teamwork, and increased organisational loyalty.

The hidden costs of burnout among executives can have far-reaching implications for both individuals and organisations. By prioritising work-life balance, organisations can not only mitigate these costs but also unlock numerous benefits that contribute to increased productivity and profitability. Flexibility alone is not enough; true work-life balance requires giving executives the autonomy and freedom to make choices that align with their personal priorities.

By rethinking productivity measurement, organisations can recognize the importance of quality over quantity and foster a culture that values well-being and innovation. Embracing work-life balance for executives is an investment that pays off from day one. The very best executive talents are driven by purpose, they want to make a lasting impact but it’s essential they can do so sustainably. It's time for organisations to prioritise work-life balance and reap the rewards of a healthier, more productive, and profitable future.

At ELR Executive we have over 20 years of experience helping FMCG and Food and Beverage organisations identify and attract executive talent who create high-performing cultures that positively shape business futures. If you'd like to learn more about how we can help you help build purpose into your candidate screening and interview process, speak to us today .

Micro-Innovation in FMCG: How Small Changes Can Lead to Big Wins

debbie@elr.net.au (Debbie Morrison) — Sun, 28 May 2023 21:30:00 GMT

In the fast-paced world of Fast-Moving Consumer Goods (FMCG), innovation is the lifeblood of success. Companies constantly strive to bring new and exciting products to market, but often, the focus is on grand, game-changing innovations that promise revolutionary outcomes.

While these transformative breakthroughs certainly have their place, it's important not to overlook the power of micro-innovation - the small, incremental changes that can lead to significant gains. In this article, we will explore the concept of micro-innovation, why small gains (and small failures) can be advantageous, and why it is crucial to look for leaders who embrace these qualities when hiring.

What is Micro-Innovation?

Micro-innovation can be defined as the process of making small, incremental improvements or adjustments to existing products, processes, or services. It involves identifying and addressing pain points, inefficiencies, or areas for enhancement on a micro level. Instead of reinventing the wheel, micro-innovation focuses on fine-tuning the existing systems and processes to drive continuous improvement.

Consider the example of a leading FMCG company that manufactures bottled beverages. While a grand innovation may involve developing a completely new line of beverages with unique flavours and packaging, micro-innovation could involve small changes in the formulation, packaging design, or even the cap mechanism of an existing product. These small adjustments may seem inconsequential at first glance, but they can make a substantial difference in terms of customer satisfaction, operational efficiency, and ultimately, financial success.

Small Gains: The Power of Marginal Improvements

One might argue that seeking small gains is not as exciting as pursuing radical breakthroughs, but overlooking the power of marginal improvements would be a grave mistake. In fact, numerous success stories demonstrate how small gains can lead to big wins.

Take the example of Toyota, a company renowned for its continuous improvement philosophy. The concept of " kaizen ," which means "change for the better," lies at the heart of Toyota's success. By encouraging every employee to contribute to small improvements in their daily work, Toyota has achieved remarkable results. Over time, these incremental changes add up, leading to enhanced quality, increased efficiency, and reduced costs. By embracing micro-innovation, Toyota became one of the world's leading automotive manufacturers.

Similarly, in the FMCG industry, Procter & Gamble (P&G) is known for its commitment to micro-innovation. P&G's researchers and scientists constantly work to make small, incremental improvements to their products, from laundry detergents to skincare solutions. These micro-innovations might include optimising the ingredients, refining the packaging, or enhancing the user experience. By focusing on small gains, P&G has built a portfolio of household brands that consistently deliver value to their customers.

Small Failures: Lessons in Innovation

While the concept of small gains is enticing, it is essential to recognize that micro-innovation is not a guaranteed path to success. Small failures are an inevitable part of the innovation process, but they can also be advantageous if approached with the right mindset.

Failure is often viewed as a taboo in corporate culture, with a focus on avoiding mistakes at all costs. However, embracing small failures as learning opportunities can foster a culture of innovation and growth. When leaders encourage their teams to experiment, take calculated risks, and learn from failures, they create an environment that promotes continuous improvement.

One of the most famous examples of learning from failure comes from Thomas Edison, the inventor of the electric light bulb. When asked about his numerous failed attempts, he famously responded, "I have not failed. I've just found 10,000 ways that won't work." Edison's persistence and willingness to embrace small failures ultimately led to the breakthrough that revolutionised the world.

In the FMCG industry, the concept of embracing small failures is exemplified by companies like Coca-Cola. Despite being a global beverage giant, Coca-Cola has had its fair share of unsuccessful product launches. One notable example is the introduction of "New Coke" in 1985, which was met with strong consumer backlash. Rather than retreating and abandoning the idea of innovation altogether, Coca-Cola listened to its customers, quickly acknowledged the failure, and reintroduced the classic formula as "Coca-Cola Classic." This strategic move not only helped the company regain consumer trust but also demonstrated the power of learning from small failures and adapting accordingly.

Leaders Who Embrace Micro-Innovation: A Valuable Asset

In a rapidly evolving business landscape, leaders who embrace the concepts of micro-innovation , small gains, and small failures are invaluable assets to any organisation. They possess the vision to recognize the potential in incremental improvements and the resilience to learn from setbacks. When hiring, it is crucial to seek out these qualities in potential leaders.

First and foremost, leaders who champion micro-innovation have a keen eye for detail. They understand that success lies in the fine-tuning of existing systems and processes, rather than solely relying on big, disruptive changes. Their ability to identify areas for improvement on a micro level allows them to make calculated adjustments that have a significant impact on overall performance.

Furthermore, leaders who embrace small gains possess a growth mindset. They see failures not as roadblocks, but as stepping stones to success. Their openness to experimentation and willingness to learn from setbacks create a culture of continuous improvement within their teams. They inspire others to think creatively, take risks, and pursue innovation, knowing that even small steps forward can lead to significant breakthroughs.

Consider the case of Satya Nadella , the CEO of Microsoft. Since taking the helm in 2014, Nadella has been a strong advocate of micro-innovation within the company. Under his leadership, Microsoft has shifted its focus towards cloud computing and subscription-based services, making small, strategic changes to its business model. This approach has resulted in remarkable growth and profitability for the company, propelling it to the forefront of the technology industry.

In addition to their attention to detail and growth mindset, leaders who embrace micro-innovation are exceptional collaborators. They understand the importance of engaging diverse perspectives and fostering cross-functional teamwork to drive innovation. By encouraging employees from various departments to contribute their insights and ideas, these leaders create a culture of collaboration that fuels continuous improvement.

When hiring, it is crucial to assess candidates not only for their technical skills but also for their ability to embrace micro-innovation and lead others in doing so. Look for individuals who have a track record of implementing small, impactful changes, who are not afraid to take risks and learn from failures, and who inspire collaboration and creativity within their teams.

While grand innovations may capture headlines and attention, the power of micro-innovation should not be underestimated. Small gains and small failures play a vital role in driving continuous improvement and long-term success in the FMCG industry. Leaders who embrace these concepts possess the vision, resilience, and collaborative spirit necessary to navigate the complex landscape of innovation. By prioritising micro-innovation and seeking leaders who embody its principles, organisations can unlock the potential for significant wins and stay ahead in a competitive market.

So, the next time you consider innovation strategies for your FMCG company, remember the profound impact of small changes. Embrace micro-innovation, encourage small gains, and learn from small failures. In doing so, you'll be paving the way for remarkable success and solidifying your position as an industry leader.

Beyond Resumes: Why Purpose Alignment Drives Hiring Success

debbie@elr.net.au (Debbie Morrison) — Sun, 21 May 2023 21:15:20 GMT

In today's rapidly evolving business landscape, purpose has emerged as a powerful driving force behind successful organisations. It is no longer enough for leaders to possess technical expertise and industry experience; hiring candidates who share your company's purpose and vision has become a critical factor in driving business performance. This blog explores the reasons why purpose has become a focal point in the hiring process, the impact of purpose-driven leaders on business performance, and the combined power of diverse experience, soft skills, and shared purpose in building high-performing teams.

Why has purpose become such a focal point in the hiring process?

Today's workforce seeks meaning and fulfilment in their professional lives. A sense of purpose serves as a powerful motivator, driving individuals to go above and beyond and fostering a deep sense of commitment to their organisation's mission. This shift in employee expectations has forced businesses to prioritise purpose in the hiring process.

Candidates who align with your company's purpose are more likely to be engaged, motivated, and committed to the organisation's goals. They bring a genuine passion for the work they do, which translates into higher levels of job satisfaction and productivity. According to a study conducted by Deloitte , 73% of employees who say they work for a purpose-driven organisation are engaged, compared to just 23% of those who don't feel a sense of purpose.

Of course, simply hiring staff aligned with your company’s purpose isn’t enough. The leadership team must fully embody the organisation's mission, leading from the front in demonstrating their commitment to the cause through their decisions, actions and culture.

How do leaders who share your company's purpose impact business performance?

Purpose-driven leaders have a profound impact on business performance and overall organisational success. When leaders embody the company's purpose, they inspire and motivate their teams to reach higher levels of achievement. Their passion is contagious, creating a culture of commitment and excellence.

Furthermore, purpose-driven leaders excel at attracting and retaining high-performing talent. In a highly competitive job market, candidates are increasingly seeking out organisations that align with their values and purpose. A strong purpose can act as a powerful magnet, attracting like-minded individuals who are driven by a shared mission. This not only enhances the quality of the talent pool but also increases employee retention rates. A survey by LinkedIn found that 71% of professionals would be willing to take a pay cut to work for a company with a mission they believe in.

Additionally, purpose-driven leaders foster a customer-centric mindset within their organisations. By connecting the company's purpose with the needs and aspirations of customers, they create products and services that resonate deeply with the target audience. This alignment results in stronger customer loyalty, higher satisfaction levels, and increased market share. In fact, a study by Ernst & Young revealed that purpose-driven companies outperform their peers in the stock market by a factor of 10 over a 15-year period.

Why is a combination of diverse experience, soft skills, and shared purpose more powerful?

While hard skills and industry experience are undoubtedly important, they are no longer sufficient on their own. The complex challenges faced by businesses today require leaders who can adapt, innovate, and collaborate effectively. A combination of diverse experience, soft skills, and shared purpose is what sets leaders apart and drives extraordinary results.

Diverse experience brings a fresh perspective to problem-solving. Leaders with varied backgrounds and experiences are more likely to think creatively, challenge assumptions, and identify unique opportunities for growth. This diversity of thought leads to greater innovation and adaptability, enabling organisations to thrive in a rapidly changing environment.

Soft skills, such as emotional intelligence, communication, and collaboration, are critical in building strong relationships, motivating teams, and driving effective decision-making. Leaders who possess these skills can navigate complex interpersonal dynamics, inspire trust and respect, and foster a culture of collaboration and high performance.

When combined with a shared purpose, diverse experience and soft skills take on even greater significance. When leaders and team members share a common purpose, it creates a sense of unity and cohesion that fuels collaboration and drives everyone towards a common goal. This shared purpose acts as a guiding force, aligning individual efforts and fostering a sense of belonging and collective responsibility.

Consider the example of Patagonia, a renowned outdoor clothing and gear company. Their purpose stated as "Build the best product, cause no unnecessary harm, use business to inspire and implement solutions to the environmental crisis," attracts individuals who are passionate about sustainability and environmental conservation. By hiring leaders who share this purpose, Patagonia has built a team of like-minded individuals dedicated to their mission. This shared purpose not only strengthens the company's culture but also drives innovation in sustainable practices, leading to remarkable business success.

Furthermore, a combination of diverse experience, soft skills, and shared purpose enables leaders to navigate complex and uncertain times with resilience and agility. The ability to adapt to changing market dynamics, embrace new technologies, and effectively lead diverse teams has become paramount in today's business landscape. Leaders who possess a deep sense of purpose and a diverse set of skills are better equipped to face these challenges head-on, make informed decisions, and guide their organisations towards sustainable growth.

It's important to note that this upholds the importance of hard skills and industry experience. These attributes still hold value and provide a foundation of expertise. However, in an era of disruption and rapid innovation, organisations must prioritise purpose-driven leaders who can leverage their diverse experiences and soft skills to navigate uncertainty, drive innovation, and create sustainable competitive advantages.

Purpose rightfully needs to be a focal point in the hiring process.

Leaders who share your company's purpose and vision have a significant impact on business performance, inspiring and motivating teams, attracting top talent, and fostering a customer-centric mindset. When combined with diverse experience and soft skills, shared purpose becomes even more powerful, driving innovation, collaboration, and adaptability. As organisations strive to thrive in an ever-changing business landscape, purpose-driven leaders are the catalysts for success. By prioritising purpose in the hiring process, businesses can build high-performing teams that are capable of achieving extraordinary results.

At ELR Executive we have over 20 years of experience helping FMCG and Food and Beverage organisations identify and attract the right talent to help achieve better business outcomes. If you'd like to learn more about how we can help you help build purpose into your candidate screening and interview process, speak to us today .

The Missing Piece: Why Adaptability is Often Overlooked in the Executive Hiring Process

debbie@elr.net.au (Debbie Morrison) — Wed, 03 May 2023 22:17:14 GMT

In today's fast-paced and ever-changing business world, adaptability is a crucial skill for executives. Being able to adapt quickly to changing circumstances can mean the difference between success and failure. But despite its importance, adaptability is often overlooked in the executive hiring process. In this article, we look at why adaptability is so vital for modern executives and how you can ensure you don’t overlook this critical skill during the hiring process.

Why is Adaptability a Vital Skill for the Modern Executive?

The business landscape is constantly changing, and executives must be able to keep up. From technological advancements to changes in consumer behaviour, companies are facing unprecedented levels of disruption. This means that executives must be able to pivot quickly and adapt to new circumstances if they want to stay ahead of the curve.

Adaptability is also critical for innovation. When executives are able to adapt to changing circumstances, they can identify new opportunities for growth and innovation. This can lead to new products, new markets, and new revenue streams. A 2020 Harvard Business School survey showed that 71% of 1,500 executives from more than 90 countries said adaptability was the most important quality they looked for in a leader.

Another reason why adaptability is essential is that it can help companies weather the storm during times of crisis. Whether it's a global pandemic or a natural disaster, companies that can adapt quickly are more likely to survive. In the food and beverage industry, for example, companies that were able to quickly pivot to online sales during the pandemic were able to weather the storm and come out on top. According to a report by NielsenIQ , The total online food and beverage landscape in 2020 saw $106 billion in dollar sales, a 125% increase in growth from the prior year.

Why is Adaptability Often Overlooked in the Executive Hiring Process?

Despite the importance of adaptability, it's often overlooked in the executive hiring process. One reason for this is that companies tend to focus on more tangible skills like experience and technical expertise. While these skills are undoubtedly important, they are not the only things that matter.

Adaptability is not always easy to measure making it less likely to be given sufficient consideration during the hiring process. Unlike experience or technical expertise, adaptability is a soft skill that's difficult to quantify. This can make it challenging for companies to assess during the hiring process.

Additionally, companies may assume that executives are naturally adaptable and don't need to be explicitly tested for this skill. However, this assumption can be dangerous. Even experienced executives can struggle to adapt to new circumstances if they're not used to doing so. This can lead to missed opportunities and missed chances for growth.

How to Hire for Adaptability

So, how can companies ensure that they're hiring executives with the adaptability skills they need?

Here are a few tips:

1. Look for Evidence of Adaptability in Past Roles

One way to assess adaptability is to look for evidence of it in past roles. For example, has the candidate worked in an industry that's undergoing significant change? Have they been involved in a major company pivot? Have they been able to successfully lead teams through times of crisis? These are all indicators that the candidate may have the adaptability skills you're looking for.

2. Ask Behavioral Interview Questions

Another way to assess adaptability is to ask behavioural interview questions. For example, you could ask the candidate to describe a time when they had to adapt to a significant change in their work environment. You could also ask them to describe a time when they had to pivot their company's strategy to meet changing market conditions. By asking these types of questions, you can get a better sense of the candidate's ability to adapt.

3. Use Assessments

Assessments can also be a useful tool for assessing adaptability. For example, there are assessments that measure a candidate's ability to handle ambiguity and uncertainty. These assessments can help you get a better sense of how the candidate will respond to unexpected situations.

4. Look for Diversity

Looking for diversity can also help ensure that you're hiring for adaptability. When you have a diverse team, you're more likely to have people with different perspectives and experiences. This can help your team adapt more quickly to changing circumstances because they're more likely to think outside the box and come up with innovative solutions.

For example, the food and beverage industry has seen a surge in demand for plant-based products in recent years. Companies that have diverse teams may be better equipped to respond to this trend because they have team members who may have experience in alternative protein sources or who have a personal interest in plant-based diets.

5. Provide Opportunities for Learning and Development

Finally, it's important to provide opportunities for learning and development. Even the most adaptable executives can benefit from ongoing training and development. This can include attending conferences, taking online courses, or participating in mentorship programs. By investing in your executive's development, you can help them build the skills they need to adapt to changing circumstances.

Adaptability is a vital skill for modern executives. It's important for innovation, weathering times of crisis, and staying ahead of the competition. However, it's often overlooked in the executive hiring process. To ensure that you're hiring for adaptability, look for evidence of adaptability in past roles, ask behavioural interview questions, use assessments, look for diversity, and provide opportunities for learning and development. By doing so, you can build a team of executives who are ready to face any challenge that comes their way.

Why Your Perfect Candidate Might Not Be the Best Leader: The Importance of Personality Traits in Business

debbie@elr.net.au (Debbie Morrison) — Tue, 02 May 2023 23:30:07 GMT

As the business world becomes more competitive, finding the right leaders to guide your organisation through times of uncertainty can be a challenging task. In the business world, it is common for executives to focus their attention on a candidate's experience when filling leadership roles. However, this emphasis on experience is a myth that needs to be debunked. Personality traits play a critical role in determining the success of business leadership.

Many companies prioritise experience when it comes to selecting their executives. However, recent studies show that personality traits are a more accurate predictor of success in leadership roles than experience alone. In this article, we discuss the personality traits that executives should look for in future leaders and explore why candidates that look perfect on paper are not necessarily the best leaders.

The Importance of Personality Traits in Business Leadership

When it comes to business leadership, personality traits are key to success. In fact, according to a study by Hogan Assessments, a leading personality assessment company, personality is the most important factor in determining whether someone will be successful in a leadership role. This is because personality traits such as emotional intelligence, adaptability, and integrity are critical to effective leadership.

Emotional intelligence, in particular, is a crucial personality trait for leaders. It involves the ability to recognize and manage one's own emotions and the emotions of others. Leaders who possess high emotional intelligence are more effective at communicating, collaborating, and resolving conflicts. They are also better at inspiring and motivating their teams. In fact, according to a study conducted by Korn Ferry, executives with high emotional intelligence (EI) generate significantly higher business results than those with lower EI. The study found that companies with higher EI leaders had 13% higher annual revenue than those with lower EI leaders. Additionally, companies with higher EI leaders had 50% higher levels of employee engagement and were 22% more likely to have lower employee turnover rates. These results indicate that leaders with high EI not only have a positive impact on the bottom line but also on the overall performance and culture of the organisation.

The Flawed Assumption of Perfect Candidates

Despite the importance of personality traits in leadership, many companies still prioritise experience when selecting their executives. They look for candidates who have the right credentials, education, and work history, assuming that these qualifications are enough to ensure success in the role.

However, this approach is flawed. The truth is that experience alone does not guarantee success in a leadership role. In fact, research shows that leaders who are high in certain personality traits but lack experience can be just as successful as those with more experience.

One reason for this is that experience can be limiting. Leaders who have spent their entire careers in a particular industry or role may struggle to adapt to new challenges and opportunities. They may be more set in their ways and less open to new ideas and approaches.

Consider the case of Elizabeth Holmes, the former CEO of Theranos, a medical testing company that collapsed amid fraud allegations. Holmes was a highly educated and accomplished executive, with degrees from Stanford University and a successful company that garnered significant media attention. However, her personality traits, including overconfidence and a lack of transparency, were ultimately responsible for the downfall of her company.

Perhaps controversial, Steve Jobs, the co-founder and former CEO of Apple Inc. is an example of a leader whose single-minded focus and strong personality traits compensated for a lack of business experience. Jobs had a tumultuous career, with significant setbacks and challenges along the way. However, his personality traits, including his creativity, passion, and vision, were critical to his success as a leader. Jobs' leadership style was undeniably unconventional, but it was effective in creating an innovative culture and driving the company's growth.

Whilst these examples might point to the extremes, they do serve to highlight the point that more than experience alone is needed to determine a candidate's potential for effective leadership. It’s another reason why the perfect candidate is a myth. It's simply impossible to predict how someone will perform in a leadership role based on their past experience alone. A candidate may have all the right qualifications on paper but may not possess the personality traits needed to be an effective leader.

Instead, executives should consider a candidate's personality traits and how they align with the organisation's culture and values.

Key Personality Traits to Look for in Executive Leaders

So, what personality traits should executives look for when selecting their leaders? There are several traits that are critical for effective leadership, including:

Emotional Intelligence

Emotional intelligence (EI) is the ability to understand and manage one's emotions and those of others. Leaders with high EI are better able to connect with their team members, understand their perspectives, and inspire them to achieve their goals. Research has shown that EI is a strong predictor of leadership effectiveness, and executives should prioritise this trait when selecting their leaders.

Integrity

Integrity is another key personality trait for leaders. Leaders who are honest, ethical, and transparent inspire trust and loyalty among their teams. They are also more likely to make decisions that are in the best interests of the company and its stakeholders. In fact, a study by the Institute of Business Ethics found that companies with a strong ethical culture outperformed their peers by 10.6%.

Resilience

The ability to bounce back from setbacks and challenges is vital in today's business arena. Leaders who are resilient are better equipped to handle stress, navigate change, and inspire their team members to do the same. Resilient leaders can also maintain a positive attitude in the face of adversity, which can be a powerful motivator for their teams.

Empathy

Empathy is the ability to understand and share the feelings of others. Leaders who are empathetic are better able to connect with their team members on a personal level, which can foster loyalty, motivation, and engagement. Empathetic leaders also tend to be better at conflict resolution and problem-solving, as they are more likely to consider multiple perspectives and find creative solutions that benefit everyone.

Adaptability

Another important personality trait for leaders is adaptability. In today's fast-paced business world, leaders need to be able to adapt quickly to changes in the marketplace and the industry. They need to be able to pivot their strategies when necessary and make tough decisions under pressure. Leaders who are adaptable are better equipped to navigate uncertainty and lead their teams through change.

Vision

Vision is the ability to see the big picture and articulate a compelling future for the organisation. Leaders with a strong vision are better able to inspire their team members and align them around a shared purpose. A clear and compelling vision can also help guide decision-making and prioritise resources, which is critical for achieving long-term success.

Examples of Successful Leaders with Strong Personality Traits

The importance of personality traits in leadership is vital in the consumer goods and food and beverage industries in particular, where innovation, creativity and a consumer-centric approach are critical to success. In these industries, companies are constantly adapting to changing consumer trends and tastes. Leaders who are adaptable, creative, and customer-focused are more likely to succeed.

Whilst there are countless examples of successful leaders who have demonstrated the importance of personality traits in effective leadership. Here are just a few examples:

Indra Nooyi, Former CEO of PepsiCo

One example of this is PepsiCo CEO Indra Nooyi, who is widely regarded as one of the most successful and innovative leaders in the food and beverage industry. Nooyi, who stepped down from her role in 2018, was known for her focus on customer needs, her ability to anticipate and respond to industry trends, and her commitment to sustainability, health, and wellness, as well as her commitment to diversity and inclusion.

Under Nooyi's leadership, PepsiCo launched new products and brands, such as Gatorade and Quaker Oats, and expanded into new markets, such as China and India. Nooyi's approach to leadership was rooted in her personality traits, such as her strong emotional intelligence, her ability to build strong relationships with stakeholders, her commitment to ethical leadership and her ability to adapt her leadership style to suit the cultural and organisational context. Under her leadership, PepsiCo's revenue doubled, and the company's stock price increased by 78%.

Paul Polman, the former CEO of Unilever

Another example is Paul Polman, the former CEO of Unilever. Polman, who stepped down from his role in 2018, was known for his focus on sustainable business practices and his ability to drive growth while also reducing the company's environmental impact.

Polman's passion for sustainability, his ability to inspire and motivate his teams, and his commitment to transparency and integrity underpinned his leadership style and how he used his personality to drive positive business outcomes. Under Polman's leadership, Unilever launched its Sustainable Living Plan. Guided by Polman’s leadership, Unilever's Sustainable Living Plan has shown impressive results. According to the company's 2020 Sustainability Report, Unilever has:

Reduced greenhouse gas emissions from its operations by 62% since 2008, and is on track to meet its target of being carbon positive by 2030
Sourced 62% of its agricultural raw materials sustainably, and aims to achieve 100% by 2023
Helped over 1 billion people improve their health and hygiene through initiatives such as Lifebuoy soap's hand-washing campaigns
Achieved a 35% reduction in waste per consumer use since 2010, and is committed to ensuring that 100% of its plastic packaging is reusable, recyclable, or compostable by 2025.

Selecting Leaders Based on Personality Traits

So how can companies select leaders based on personality traits?

One approach is to partner with an executive search firm and use personality assessments to evaluate candidates' personality traits and identify those that are best suited for the role.

Personality assessments can provide valuable insights into candidates' strengths and weaknesses, their leadership style, and their potential for growth and development. They can also help companies identify candidates who may not have the most experience but possess the right personality traits and potential for success in the role.

It's important to note, however, that personality assessments should not be used as the sole basis for selecting leaders. They should be used in combination with other factors, such as experience, skills, and values, to ensure that candidates are a good fit for the role and the company culture.

Personality traits are critical for effective business leadership. While experience and qualifications are important, they are not sufficient on their own to determine a candidate's potential for leadership success. Executives must prioritise personality traits such as emotional intelligence, resilience, empathy, adaptability, and vision when selecting their leaders. By doing so, they can build a strong leadership team that is equipped to navigate challenges, inspire their teams, and drive the organisation's success.

It's time to debunk the myth of the perfect candidate and focus on the traits that matter most for effective leadership. By doing so, executives can ensure that their organisations are led by individuals who are not only qualified but also possess the personality traits necessary to drive long-term success.

The Myth of the 'Hero Leader' in FMCG: Why Collaboration is Key to Success.

debbie@elr.net.au (Debbie Morrison) — Wed, 19 Apr 2023 21:44:43 GMT

The Consumer Goods industry is a highly innovative, competitive and fast-paced sector that demands leaders who can navigate complex challenges and drive results.

Innovation and creativity are the driving force behind food & beverage excellence but they can also be a double-edged sword. Elevating innovative mavericks and individual leaders as saviours who can lead companies to glory, spawns the notion of the ‘hero leader’ - a single individual who possesses all the necessary skills and expertise to safeguard company success.

In reality, this notion couldn’t be further from the truth. We all love a hero - Ben Affleck's new movie ‘Air’ epitomises this - a story based on monetizing an amazing basketball player on the rise, whose athleticism and fame could function as a self-sustaining advertisement for an ever-expanding product line. But like the real story, one-man missions to rescue a company's fortunes from the brink of disaster belong back in the 80s. Collaboration is the key to success in FMCG, and leaders who prioritise cooperation and teamwork over individual heroics are better equipped to achieve sustained success.

The ‘Hero’ Myth

To understand why collaboration is critical in FMCG, we must first explore the reasons why the hero leader myth persists. One reason is the tendency to attribute success to a single individual rather than to a team effort. This is often reinforced by the media's portrayal of successful business leaders as charismatic and larger-than-life figures. However, this overlooks the importance of collaboration and teamwork in driving successful outcomes. In fact, research suggests that teams outperform individuals in a range of tasks, from decision-making to problem-solving.

In reality, the FMCG industry is constantly evolving, with ever-changing consumer preferences and a constant need for innovation. This can create a sense of urgency and a focus on short-term results, which may lead some leaders to adopt an authoritarian approach. However, this approach can stifle creativity and hinder collaboration, ultimately leading to burnout and high employee turnover.

On the other hand, leaders who prioritise collaboration can create an environment that fosters innovation, creativity, and long-term success. By bringing together diverse perspectives and skill sets, teams can identify new opportunities and develop effective solutions to complex challenges. When employees feel valued and heard, they are more likely to be engaged and committed to the success of the company. Therefore, collaboration is essential for sustained success in the FMCG industry.

One example of successful collaboration in FMCG is Procter & Gamble (P&G). P&G is known for its open and collaborative culture, which has enabled the company to develop innovative products that meet the needs of its customers. For example, the company's Swiffer product was the result of collaboration between P&G's R&D team and a group of designers and engineers from IDEO, a design firm. By working together, they were able to create a product that addressed a common cleaning challenge in a new and innovative way.

Another example is Unilever, which has made sustainability a key priority in its business strategy. By collaborating with stakeholders such as suppliers, NGOs, and consumers, Unilever has been able to develop innovative solutions that reduce its environmental footprint and create long-term value for the company. For example, the company's "Project Sunlight" initiative aims to create a brighter future for children by improving health and hygiene, reducing environmental impact, and enhancing livelihoods. This initiative has been successful in part because it has engaged a wide range of stakeholders in its development and implementation.

In addition to these examples, research supports the idea that collaboration is key to success in FMCG. A study by McKinsey & Company found that companies with more diverse leadership teams and a collaborative culture were more likely to outperform their peers. Additionally, a study by Deloitte found that organisations with a strong culture of collaboration were more agile and better able to adapt to change.

Collaboration: The Necessary Anti-Hero

So, how can leaders foster a culture of collaboration in their organisations? One important step is to model collaborative behaviour themselves. When leaders demonstrate a willingness to listen to diverse perspectives and to work collaboratively with others, they set an example for their employees to follow. Additionally, leaders can create structures and processes that support collaboration, such as cross-functional teams, regular team-building activities, and open communication channels.

The myth of the hero leader in FMCG is just that - a myth. While individual leadership is important, collaboration and teamwork are essential to achieving sustained success in the fast-paced and competitive FMCG industry. Rather than prioritising authoritarian or top-down approaches, leaders who prioritise collaboration create an environment that fosters innovation, creativity, and long-term success.

By bringing together diverse perspectives and skill sets, teams can identify new opportunities and develop effective solutions to complex challenges. Companies like Procter & Gamble and Unilever are examples of successful collaboration in action, where they have been able to develop innovative products and sustainability initiatives by working closely with stakeholders.

Research also supports the idea that collaboration is key to success in FMCG, as companies with more diverse leadership teams and a collaborative culture were found to outperform their peers.

To foster a culture of collaboration, leaders must model collaborative behaviour themselves and create structures and processes that support collaboration, such as cross-functional teams and open communication channels.

The hero leader myth must be debunked in the FMCG industry. Collaboration, not individual heroics, is the key to sustained success in this fast-paced and competitive industry. By prioritising collaboration, leaders can create an environment that fosters innovation, creativity, and long-term success for their company and its stakeholders.

At ELR Executive , we specialise in helping FMCG and Food & Beverage companies identify and hire leaders who value collaboration and have the skills to bring together diverse perspectives and skill sets to drive successful business outcomes. They understand that successful collaboration requires strong communication skills, empathy, and the ability to build trust and respect across teams. With a focus on finding executives who possess these qualities, ELR Executive can help FMCG companies build high-performing teams that are able to navigate complex challenges and drive sustainable growth.

If you'd like to learn more about how we can help you hire the right leadership talent, who can navigate your business forward, securing its competitive advantage to thrive in today’s challenging business environment, speak to us today .

Leading with Trust: The Blueprint for Transparency and Authenticity

debbie@elr.net.au (Debbie Morrison) — Wed, 19 Apr 2023 21:23:45 GMT

As consumers become increasingly informed about the products and services they purchase, they demand more transparency from the companies they do business with. This is particularly true for FMCG and Food/Beverage businesses, who face mounting pressure to be transparent about their operations. The days of keeping information under wraps and relying on traditional marketing tactics are over.

The rise of social media and online reviews has given consumers a voice and the power to impact a company's reputation with just a few clicks. In this new age of consumer empowerment, transparency and authenticity have become non-negotiables for executive leaders who want to build trust with their customers.

So, what exactly do transparency and trust mean for FMCG and Food/Beverage businesses?

For starters, it means openly and honestly sharing information about product ingredients, sourcing, manufacturing processes, and supply chain operations. Consumers are more interested in knowing where their food comes from, how it's grown, and what ingredients are used. They are also more interested in knowing about the ethical and sustainable practices that businesses use in their operations. According to a survey conducted by Label Insight, 94% of consumers are more likely to be loyal to a brand that offers complete transparency.

Transparency isn’t just about clear labelling and ingredient lists, it also extends to a company's values, mission, and culture. Stakeholders want to support companies that align with their personal beliefs and values.

Trust, on the other hand, is the foundation of any successful business and is achieved through a company's ability to deliver on its promises and to act with integrity. Trust is earned over time through consistent and transparent actions. Once trust is established, it can lead to customer loyalty, positive word-of-mouth, and increased profits. Yet this vital aspect of a business is fragile and once broken can have significant consequences and result in lasting reputational damage for organisations.

For instance, the 2015 E. Coli outbreak associated with Chipotle Mexican Grill led to a significant drop in sales and stock price, highlighting the importance of trust and transparency in the food industry.

Whilst food safety remains an ongoing focus for the food and beverage industry, the recent explosion of cyber attacks has, more than any other type of scandal, called into question the concept of trust and transparency among organisations. In February 2021, Coles Group and Latitude Financial were hit by a cyber attack that exposed the personal information of thousands of customers. The breach was a wake-up call for these companies and the industry as a whole, highlighting the need for robust cybersecurity measures and increased transparency.

The fallout from a cyber attack can be severe, causing irreparable reputational damage to a business. Customers expect their personal information to be kept secure, and when that trust is broken, it can be challenging to win it back. In this context, transparency is vital for executive leaders who want to maintain trust with their stakeholders. By being open and honest about a breach and taking swift action to remedy it, companies can demonstrate their commitment to customer safety and security. Ignoring or downplaying the issue will only exacerbate the damage and erode trust further.

Transparency: The Path to Maintaining and Restoring Trust

Transparency starts at the top. Executive leaders must be transparent in their communication with employees, customers, and stakeholders. This means being open and honest about company performance, challenges, and goals.

For example, embracing transparency and authenticity in the aftermath of a cyber attack can be a challenging but necessary step for executive leaders. Customers want to know what happened, what steps are being taken to prevent future breaches, and how their information will be protected moving forward. In some cases, a cyber attack may even present an opportunity for companies to showcase their commitment to security and transparency, providing a competitive advantage over rivals who may be less forthcoming with information.

Executive leaders should also be accessible to employees and customers, responding to questions and concerns in a timely and respectful manner. By creating an environment of open communication, executive leaders can build trust and establish a positive company culture.

Another way executive leaders can maintain trust is by taking responsibility for mistakes and working to correct them. No company is perfect, and mistakes will inevitably happen. However, how a company responds to those mistakes is what matters. Executive leaders must be willing to admit fault, apologise, and take steps to prevent similar mistakes from happening in the future. This shows consumers and stakeholders that the company is committed to transparency and accountability.

Transparent Communication: The Essential Ingredient in Creating Consumer Appeal and a Positive Company Culture

Transparent communication means being open and honest in all aspects of business. This includes providing clear and accurate information about products and services, as well as the company's values, mission, and culture. Transparent communication also means listening to feedback from customers and stakeholders and taking action to address their concerns.

Transparent communication is essential in creating consumer appeal because it builds trust and establishes a positive reputation. Consumers want to support companies that are transparent about their products and services. They also want to know that the company is committed to ethical and sustainable practices. By communicating transparently, companies can attract and retain loyal customers.

Transparent communication is also crucial in creating a positive company culture. Companies can create a more engaged and motivated workforce by fostering open communication and feedback. Employees who feel heard and valued are more likely to be productive and committed to the company's success.

The Role Technology and Data are Playing in Helping Organisations to Become More Transparent

Technology and data are increasingly important in helping organisations become more transparent. For example, blockchain technology can be used to track products from farm to table, providing consumers with information about where their food comes from and how it's produced. Data analytics can also track and measure company performance, allowing for more transparent reporting and accountability.

Social media and online reviews have also made it easier for consumers to share their experiences and opinions about companies. While this can be a double-edged sword for businesses, it also provides an opportunity for companies to respond to feedback and demonstrate their commitment to transparency and customer satisfaction.

Companies can also use technology to improve communication with customers and stakeholders. Chatbots, for example, can be used to provide quick and accurate responses to customer inquiries. In contrast, social media platforms can be used to engage with customers and share information about the company's products and values.

Why Reputation Matters

Reputation is everything in the FMCG and Food & Beverage industries. A company's reputation can take years to build, but can be destroyed in a matter of days by a scandal or negative publicity. That's why it's essential for companies to hire executive leaders who are committed to transparency and authenticity.

At ELR Executive, we specialise in helping FMCG and Food & Beverage companies identify and hire executives who lead with authenticity and can build trust during times of uncertainty. We believe that executive leadership is key to establishing and maintaining trust with consumers and stakeholders. We leverage highly customised search, selection, and assessment techniques, informed by more than 20 years of experience in our field. This is our SELECT methodology , a proven approach to identifying candidates who have the skills and qualities needed to lead in today's fast-paced and complex business environment.

We also recognise that authenticity is essential in building trust. That's why we look for candidates who are committed to transparency and who have a track record of acting with integrity. We believe that by hiring executives who are authentic and transparent, companies can establish a positive reputation and build trust with customers and stakeholders.

If you'd like to learn more about how we can help you hire the right leadership talent, who can navigate your business forward, securing its competitive advantage to thrive in today’s challenging business environment, speak to us today .

Non-linear career paths: The key to finding better executive talent

debbie@elr.net.au (Debbie Morrison) — Mon, 27 Mar 2023 17:11:00 GMT

As the business world rapidly evolves, the traditional career paths that were once considered the norm are becoming a thing of the past. Instead, more executives are taking non-linear career paths that involve making bold career choices and pivoting to different industries, ultimately leading to a diverse set of skills and experiences.

This trend is especially prevalent in the Fast-Moving Consumer Goods (FMCG) industry, where the need for talent with a broad skill set and an adaptable mindset is essential.

As FMCG and F&B businesses seek to gain a competitive foothold through the appointment of skilled leadership talent, we look at why hiring talent with non-linear career paths is critical in uncovering the FMCG industry's best leaders.

Why are executives choosing non-linear career paths?

One reason why career diversity among executives is increasing is that people are working longer. As the retirement age increases and life expectancy rises, executives are choosing to work longer, leading to longer career spans. With longer careers come more opportunities to switch paths and explore different industries. This trend is also reflected in research conducted by Deloitte, which found that over 90% of professionals who were surveyed expect to stay in their jobs for three years or less, indicating that job tenure is declining.

Executives' values and priorities have also shifted in recent years, leading to more flexibility in career choices. Younger generations, in particular, place a greater emphasis on work-life balance, meaningful work, and personal growth. These values often lead to more exploration in career choices and increased willingness to take risks. With a focus on personal growth and meaningful work, executives are more likely to take non-traditional career paths, leading to diverse skill sets that can be invaluable in the FMCG industry.

Diverse Skills

The need for greater diversity doesn’t mean that specialist knowledge is of less value in today’s business arena. Specialist knowledge and expertise continue to play a critical role, especially in specialist industries such as food manufacturing where safety, quality, and consistency are essential. For example, understanding food safety regulations, quality control, and the supply chain is a vital component in staying competitive. Leaders and executives who have a deep understanding of the industry's best practices can ensure that products consistently meet safety and quality standards.

However, rapidly changing business environments demand greater adaptability and innovation to meet changing customer expectations and stay competitive without losing sight of industry best practices, food safety and governance.

New entrants to the market and the introduction of innovative solutions to customers' food preferences such as vegan, meat-free alternatives and non-alcoholic beverages are increasing the pressure for food and beverage businesses to continually innovate. The ability to develop new products that meet these changing customer needs requires leaders and executives who can drive product development and create new revenue streams. For example, a leader with a background in R&D might be better placed to develop innovative new products that cater to specific dietary requirements, such as vegan or gluten-free options.

A survey by Deloitte found that 83% of executives believe that employees with diverse career backgrounds bring a wider range of experiences and perspectives, which leads to more creative and innovative ideas.

The rapid growth of markets such as gluten-free and vegan products highlights the importance of innovation and the need to remain relevant as customer expectations evolve. Alongside this, digitisation, e-commerce and Direct-To-Consumer models are enabling businesses to collect more data than ever before, better-informing decision-making around product innovation.

Leaders with non-linear career paths often result in diverse skill sets, for example, a leader with a background in data analytics might be better suited to leveraging data and technology to improve processes and better meet customer expectations by analysing customer behaviour and choices to create targeted products and inform marketing campaigns around these preferences.

A report by the World Economic Forum found that employees with diverse career backgrounds bring unique perspectives, innovative ideas, and cross-functional skills to the workplace, which can lead to increased competitiveness and better business outcomes. These skills allow them to approach challenges in new and innovative ways, making them valuable assets to any FMCG or F&B organisation.

Skills based hiring

As companies continue to prioritise skills-based hiring, executives with non-linear career paths can help organisations expand their talent pool. In the past, traditional hiring practices focused heavily on industry experience, leading to a limited pool of candidates. However, as companies shift their focus to skills-based hiring, they are opening up opportunities to executives with diverse backgrounds and skill sets. These executives may have skills that are transferable to the FMCG industry, making them a valuable addition to the talent pool.

Moreover, lower levels of loyalty among employees have contributed to the pursuit of non-linear career paths. In the past, employees often stayed with the same company for decades, leading to a limited number of job opportunities and limited exposure to new and challenging environments throughout their careers. However, today's employees are more likely to change careers with greater frequency, with an average of 12 job changes during their working life. Career changes can often be viewed as a negative trait, but they can also be an opportunity for executives to explore different industries, gain new skills, and make bold career moves. These experiences can lead to innovative thinking and a unique perspective that can be valuable in the FMCG industry.

It's essential to note that non-linear career paths should not be confused with job hopping. Job hopping often indicates a lack of commitment, while non-linear career paths demonstrate a willingness to take risks and explore different industries to gain new skills and experiences.

Executives who take non-linear career paths tend to bring a unique perspective to the FMCG industry, which can lead to innovation and increased competitiveness. Being open to leaders and executives from other industries not only allows organisations to tap into a broader talent pool but according to a study conducted by LinkedIn, employees who had a variety of experiences, such as working in different industries, functions, or countries, were more likely to be promoted to higher-level positions sooner. Specifically, those with diverse experiences were 23% more likely to be promoted within three years than those without diverse experiences.

Furthermore, a study by Harvard Business Review found that executives who had experience in multiple industries had better problem-solving skills, which led to better decision-making.

Greater resilience

The FMCG industry is constantly evolving, and hiring executives with non-linear career paths is essential to uncovering the best talent. A study by the National Bureau of Economic Research found that entrepreneurs who had previously worked in different industries were more likely to succeed than those who had only worked in one industry. This suggests that diverse career paths can lead to better business outcomes.

Longer careers, changing values, and a focus on skills-based hiring have contributed to the rise of non-linear career paths. Moreover, lower levels of loyalty and a willingness to take risks have led to more exploration in career choices.

As the business world continues to change, it's essential for the FMCG industry to adapt by embracing diversity in career paths and experiences. Unsurprisingly, a report by Forbes found that executives who had diverse career paths were better equipped to deal with unexpected challenges and changes in the industry. This resilience is likely due to their ability to draw on a wider range of experiences and skills.

Organisations seeking to innovate would do well to consider hiring executives with diverse backgrounds and nonlinear careers who can bring fresh perspectives, and innovative ideas, adding cross-functional skills to the workplace, which can lead to increased competitiveness and better business outcomes.

Emotional self-awareness: How executives can use it to improve performance

debbie@elr.net.au (Debbie Morrison) — Tue, 21 Mar 2023 17:55:47 GMT

As organisations continue to become more complex, global, and diverse, leaders are increasingly expected to not only have strong technical skills but also possess a high level of emotional intelligence. Emotional intelligence (EI) refers to the ability to identify, understand, and manage one's own emotions, as well as the emotions of others.

In leadership, emotional intelligence plays a critical role in building strong relationships, promoting effective communication, and creating a positive work environment. Yet many executives and boards still fail to fully appreciate the positive impact emotional self-awareness can have on not only their own performance but that of their teams and the business as a whole.

Studies have shown that leaders with high emotional intelligence are more likely to be effective in their roles and achieve better outcomes for their organisations. In fact, Research by EQ provider TalentSmart shows that emotional intelligence is the strongest predictor of performance.

In this blog post, we explore the importance of emotional intelligence in leadership, with a focus on the role of emotional self-awareness in improving executive performance. We discuss strategies that executives can use to develop emotional self-awareness and provide real-world examples of leaders who have successfully improved their leadership effectiveness through emotional intelligence.

What is Emotional Self-Awareness?

Emotional self-awareness is the ability to observe and understand one's own emotions, as well as their impact on behaviour and decision-making. It involves being aware of the emotions one is experiencing in the moment, as well as recognizing patterns in emotional responses over time. For executives, emotional self-awareness is particularly important because it can help them navigate the complex and often stressful demands of leadership. Without it, executives can find it difficult to effectively regulate their own emotions, as well as empathise with the emotions of others.

Leaders with high emotional self-awareness are able to notice their own emotional triggers, understand the impact of their emotions on their behaviour and decision-making, and take steps to manage their emotions in a way that promotes positive outcomes for themselves and their team. 71% of employers surveyed by CareerBuilder said they value EQ over IQ when hiring new employees, reporting that employees with high emotional intelligence are more likely to stay calm under pressure, resolve conflict effectively, and respond to co-workers with empathy.

Additionally, emotional self-awareness is closely tied to authenticity and transparency in leadership. Leaders who are able to acknowledge and express their emotions in an honest and constructive way are often viewed as more approachable and relatable by their team, which can improve trust and collaboration. Conversely, leaders who lack emotional self-awareness may be viewed as distant or unapproachable, which can hinder their ability to effectively lead their team.

How emotional self-awareness can improve leadership effectiveness

Despite the challenges in measuring direct correlations between Emotional self-awareness can improve leadership effectiveness in a number of ways. A study published in the Journal of Management Education found that self-awareness was positively related to job performance, as well as job satisfaction and organisational commitment. The researchers found that self-awareness was particularly important for leaders who had to navigate complex social situations and work with diverse groups of people.

Here are some examples how self-awareness can drive performance:

Better decision-making: When leaders are self-aware of their emotions, they can make better decisions. They can identify when their emotions are influencing their thinking and take steps to regulate those emotions before making important decisions.
More effective communication: Self-aware leaders are better able to communicate their thoughts and feelings in a clear and concise way. They can identify when their emotions are affecting their communication and adjust their approach accordingly.
Increased empathy: Leaders who are emotionally self-aware are more empathetic towards their team members. They are better able to understand their team's perspectives and needs, which can help them build stronger relationships and improve collaboration.
Improved conflict resolution: Leaders who are self-aware are better equipped to handle conflicts. They can see when their emotions are getting in the way of resolving a conflict and take steps to manage those emotions. They are also better able to understand the emotions of others and work towards a mutually beneficial resolution.
Increased resilience: Self-aware leaders are better equipped to handle stress and adversity. They can identify when they are feeling overwhelmed or burned out and take steps to prioritise self-care. This can help them maintain their energy and focus, even in challenging situations.

In order to create a safe environment for their employees, leaders should be open about their own feelings and attributes, as well as any challenges they face. By demonstrating through their own actions that they value individuality, well-being and mental health in their team members, leaders make it more likely that these employees will be satisfied with their jobs--thereby increasing the likelihood of retaining them.

Strategies for Developing Emotional Self-Awareness

Longstanding cultural norms, favouring a strong emphasis on technical skills and quantifiable results have led to a culture where soft skills such as emotional self-awareness are undervalued or overlooked.

Traditional leadership skills such as business acumen and technical knowledge are often seen as ‘essential skills’ for success in a leadership role, largely because they are often more tangible and measurable than soft skills. Business results can be quantified and technical knowledge can be assessed. Whereas, emotional self-awareness is more difficult to measure.

This type of thinking often means that few executives realise the impact that emotions can have on leadership effectiveness and team performance. Yet, soft skills such as emotional self-awareness are becoming increasingly important in today's workplace. As the workforce becomes more diverse and complex, leaders need to be able to navigate complex interpersonal dynamics and build strong relationships with their team members. This requires a high level of emotional intelligence, which includes emotional self-awareness.

There are several strategies that executives can use to develop emotional self-awareness. Here are some of the most effective techniques:

Mindfulness: Mindfulness is a practice that involves paying attention to the present moment without judgement. It can help executives become more aware of their emotions and the physical sensations that accompany them. Mindfulness practices such as meditation and deep breathing can help executives develop a greater sense of emotional self-awareness.
Journaling: Journaling can be an effective way for executives to reflect on their emotions and experiences. By taking time to write about their thoughts and feelings, executives can develop a greater understanding of their emotional patterns and triggers. They can also identify areas where they need to improve and set goals for themselves.
Feedback: Seeking feedback from others can be a powerful way for executives to develop emotional self-awareness. Feedback from colleagues, mentors, or coaches can provide insights into how others perceive their emotional behaviour. This can help executives identify blind spots and develop strategies for improving their emotional self-awareness.
Self-reflection: Taking time for self-reflection can help executives become more aware of their emotional patterns and triggers. They can reflect on their emotional reactions to different situations, identify what emotions they are feeling and what is causing them. This can help executives develop a greater sense of self-awareness and identify areas where they need to improve.
Therapy or counselling: Working with a therapist or counsellor can help executives develop greater emotional self-awareness. A mental health professional can help executives identify their emotional patterns and triggers, and provide guidance on how to manage their emotions in a healthy way.

Some of the world’s most recognisable business leaders have adopted self-awareness practices to help improve their own performance but also help shape company culture.

Satya Nadella, CEO of Microsoft: Nadella has credited his practice of mindfulness meditation with helping him develop greater emotional self-awareness. He has said that mindfulness has helped him become more aware of his emotions and better able to manage stress. Under his leadership, Microsoft has seen a significant shift towards a more collaborative and empathetic company culture.

Similarly, Jeff Weiner, former CEO of LinkedIn has been vocal about the importance of emotional self-awareness and has encouraged his team members to practise mindfulness meditation. He has also emphasised the importance of empathy in leadership and has worked to create a culture of compassion and collaboration at LinkedIn. Under his leadership, LinkedIn saw significant growth and was eventually acquired by Microsoft.

How to identify executives with good emotional self-awareness.

Leaders with good emotional self-awareness tend to demonstrate the qualities most commonly associated with high performance, however, when hiring executives it can be useful to look for specific traits and behaviours. There are a number of strategies that executive boards can use to identify executives with good emotional self-awareness, we have highlighted the most important below:

Conduct Emotional Intelligence assessments: Emotional Intelligence (EI) assessments can provide objective data on an executive's level of self-awareness. These assessments typically involve a series of self-report questionnaires or situational judgment tests that evaluate an individual's ability to recognize, understand, and manage their own emotions.
Look for emotional self-regulation skills: Executives who possess good emotional self-awareness are typically skilled at regulating their emotions in high-stress situations. Look for executives who demonstrate an ability to stay calm, composed, and focused in challenging situations.
Observe communication skills: Executives with high emotional self-awareness tend to be effective communicators, both verbally and non-verbally. Look for executives who are skilled at conveying their own emotions and picking up on the emotions of others in a conversation.
Review past performance: Reviewing an executive's past performance can provide valuable insights into their level of emotional self-awareness. Look for executives who have a track record of making sound decisions, managing conflicts effectively, and maintaining positive relationships with colleagues.
Conduct behavioural interviews: Behavioral interviews are a type of interview that focuses on past behaviour as an indicator of future performance. Use questions that probe for examples of how an executive has managed their emotions in challenging situations, how they respond to stress, and how they have handled difficult interpersonal dynamics in the work

As we have established, perhaps not as easily measurable as technical skills or business acumen, self-awareness is a notable factor in the performance and effectiveness of executive leaders. Increasingly, this skill is playing a vital role in not only shaping business decisions but creating safe, inclusive workplace cultures that enable greater collaboration and foster an environment of innovation, idea sharing and creative expression.

By practising mindfulness, seeking feedback, reflecting on emotions, and taking responsibility for emotions, executives can enhance their emotional self-awareness and become more effective leaders capable of tackling complex challenges, uncertainty and rapid change.

At ELR Executive we have over 20 years of experience helping FMCG and Food and Beverage organisations identify and attract the right talent to help achieve better business outcomes. If you'd like to learn more about how we can help you hire emotionally self-aware leadership talent who can improve performance outcomes for your organisation, speak to us today .

Why a focus on ESG could be a competitive advantage in times of uncertainty

debbie@elr.net.au (Debbie Morrison) — Wed, 15 Mar 2023 21:31:24 GMT

ESG has become somewhat of a buzzword in recent years and for good reason – Environmental, Social, and Governance (ESG) factors have gained significant importance in the FMCG and Food and Beverage Industries. But why is ESG vital to gaining a competitive advantage?

Sustainability is no longer an ideal, it is a mainstream concept and companies that prioritise this and other ESG factors are increasingly being perceived as more responsible, ethical, and sustainable. In the FMCG (Fast-Moving Consumer Goods) industry, a focus on ESG over traditional issues such as corporate strategy is emerging as both an ethical and commercial path to securing a competitive advantage in times of uncertainty.

Investors are increasingly assessing how companies behave as well as how they perform.

As investors and corporate boards assess the multitude of risks that could potentially impact their portfolios' returns such as; climate change, labour rights and political risk, how companies behave as well as how they perform is coming under increased scrutiny. Investors want to understand what a company's strategy is in these areas and whether it will provide them with an advantage over their peers or competitors.

The result is a growing focus on ESG issues such as diversity and gender equality, employee health and safety, sustainability practices and climate risk management. This trend has been driven in part by regulatory changes such as ASIC’s Task Force on Climate-related Financial Disclosures (TCFD) recommendations. Australia's insurance industry can expect an acceleration in climate risk reporting and sustainable finance obligations in 2023. In December, the federal government announced the start of a consultation process that would lead to mandatory climate-related disclosures.

But it's also happening because investors want to know that their money isn't funding unethical behaviour or activities with negative environmental consequences.

Investors want to understand how environmental and social risk is being managed.

ESG is about understanding how to manage environmental, social and governance risks. For board members and business leaders, it's about making sure that a company has good governance structures in place so that it can make decisions in the best interests of its stakeholders.

As we have seen in recent years, ESG factors are increasingly affecting company performance, but they also have the potential to significantly impact an organisation's reputation. In fact, investors are increasingly looking at ESG factors when making investment decisions--and this trend isn't likely to change anytime soon.

Corporate boards are increasingly being held accountable for ESG performance.

Economic pressures, talent shortages, digital transformation and shifting consumer expectations are all pressing issues for FMCG companies. Among the multitude of competing priorities, ESG issues don't seem like they would be at the top of the list.

However, research is finding that those who pay attention to ESG are actually finding themselves in a better position than those who don't. When it comes to ESG, McKinsey found that from 2,000 ESG studies on the impact of ESG on company returns, 68% of companies that prioritise environmental, social, and governance (ESG) concerns achieved positive returns.

And when it comes to gender diversity on boards, another study by the University of California, Davis found that companies with higher female representation experienced lower costs and greater returns on capital during turbulent times.

How does ESG translate into a competitive advantage, especially in times of uncertainty?

Plagued with significant disruptions in recent years, including changing consumer preferences, increasing competition, and supply chain disruptions the FMCG industry has been hit hard. These disruptions have highlighted the need for FMCG companies to adapt to changing circumstances and remain agile.

One might argue that in light of such a challenging backdrop, rapid digital or business transformation may offer the greatest potential for organisations to secure a competitive advantage. Whilst the case for transformative or digital initiatives is indeed strong, factoring ESG into core business strategies can help organisations to better align products, services and business purpose with consumer and employee values, increasing their ability to meet stakeholder expectations. In doing so, FMCG companies can improve their ability to secure a competitive advantage by enabling them to respond to changing market conditions.

ESG can build greater resilience

As business leaders explore the ways in which they can mitigate risk, factoring ESG considerations into corporate strategy can help light the path to better decision-making. One of the key benefits of focusing on ESG is the ability to build resilience in the face of uncertainty. Through the lens of environmental sustainability and social responsibility, boards can better advise and support FMCG companies to build resilience by understanding how future risk can impact their organisation, thereby reducing their exposure to risks such as supply chain disruptions, regulatory changes, and reputational damage.

Companies that prioritise sustainability by reducing their carbon footprint and implementing sustainable sourcing practices are less likely to face regulatory penalties and reputational damage. Similarly, companies that prioritise social responsibility by investing in their employees' well-being and safety are better equipped to deal with disruptions and the effects of unexpected events such as the COVID-19 pandemic, which highlighted the importance of employee safety and well-being.

Research from Mercer shows that satisfied employees work harder, stay longer with employers, and seek to produce better results for the organisation. The same research found that companies with highly satisfied employees have, on average, 14% higher ESG scores than the global average.

ESG Improves stakeholder relationships

Secondly, ESG can be a powerful tool in helping FMCG companies build stronger relationships with customers and other stakeholders. A focus on ESG factors can help FMCG businesses to build stronger relationships with customers and other stakeholders. Customers are becoming increasingly concerned about the impact of their consumption on the environment and society. They prefer to buy products from brands that share their values and actively work towards sustainable and socially responsible practices. FMCG companies that prioritise ESG factors are seen as more ethical, sustainable, and trustworthy, which can help them build brand loyalty and customer trust.

This isn’t exclusive to customers, organisations that invest in ESG are more likely to attract and retain employees who share their values and are committed to creating positive social and environmental impact.

Today's workforce is increasingly values-driven, and employees are more likely to work for companies that align with their values and offer a sense of purpose. By prioritising ESG factors, FMCG companies can attract and retain employees who are committed to creating positive social and environmental impact, and who are more likely to be engaged and motivated in their work.

According to a survey conducted by SEEK in 2021, 79% of Australian workers want to work for a company that is committed to making a positive impact on the environment and society. The same survey found that 74% of respondents are more likely to apply for a job at a company that is environmentally and socially responsible, and 81% said they would consider leaving a company that didn't have a good reputation for corporate social responsibility.

ESG drives innovation and opportunity

Thirdly, a focus on ESG factors can lead to innovation and new business opportunities for FMCG businesses. FMCG companies that prioritise ESG factors are more likely to identify and capitalise on emerging market trends related to sustainability and social responsibility.

By prioritising sustainability, FMCG businesses are better positioned to develop products that are made from renewable materials or that are recyclable, enabling them to tap into emerging markets that promote health and wellness or address social issues such as poverty and inequality.

Additionally, ESG factors are more likely to attract investment from impact investors, who are looking for companies that generate positive social and environmental impact in addition to financial returns.

While some FMCG companies may be reluctant to prioritise ESG factors because of concerns they will harm profitability and competitiveness, research shows that companies that prioritise ESG outperform their peers in terms of financial performance and market valuation. A study by Harvard Business Review found that companies that prioritise sustainability outperformed their peers in terms of stock performance and financial performance. In addition, socially responsible investors are more likely to invest in companies that generate positive social and environmental impact.

Moreover, a focus on ESG factors can help FMCG companies to differentiate themselves from their competitors in a crowded market. In the FMCG industry, where competition is fierce, companies that prioritise ESG factors can stand out by offering products and services that are more sustainable, ethical, and socially responsible. This can help to build brand loyalty and customer trust, which can lead to increased sales and profitability.

In fact, ESG factors can be integrated into corporate strategy to create long-term value for the company and its stakeholders. Companies that prioritise ESG factors can use them as a lens to evaluate and inform corporate strategy, identify new business opportunities, and manage risk.

Business leaders and executives can use sustainability metrics to evaluate the environmental impact of their operations, identify areas for improvement, and implement sustainable practices that reduce costs and increase efficiency. Similarly, companies can use social metrics to evaluate the impact of their operations on employees, customers, and communities, identify areas for improvement, and implement policies and practices that promote social responsibility.

In conclusion, a focus on ESG factors over traditional issues such as corporate strategy could be a competitive advantage for FMCG businesses in times of uncertainty. By prioritising ESG factors, FMCG companies can build resilience, strengthen stakeholder relationships, drive innovation, and differentiate themselves from their competitors.

Moreover, a focus on ESG factors can lead to improved financial performance, market valuation, and talent attraction and retention. As the business world continues to evolve, FMCG companies that prioritise ESG factors are likely to be better equipped to adapt to changing circumstances and emerge as leaders in their industry.

At ELR Executive we have over 20 years of experience helping FMCG and Food and Beverage organisations identify and attract the right talent to help achieve better business outcomes. If you'd like to learn more about how we can help you hire the right leadership talent, who can help your organisation turn ESG into a competitive advantage, speak to us today .

Rethinking Risk And Control For The Modern FMCG Enterprise

debbie@elr.net.au (Debbie Morrison) — Thu, 02 Mar 2023 02:35:52 GMT

Despite risk management dominating many board agendas, Australian companies have repeatedly proven unprepared for recent shocks such as the COVID-19 pandemic, supply chain disruptions, labour shortages, the Great Resignation and cybersecurity events.

A 2021 EY survey of more than 500 global board members revealed that risk management today typically lacks focus on emerging and atypical risks, is not always aligned with business strategy and is too entrenched in the here and now.

The result? Disruptions to supply chains lost revenue and reputational damage as a result of cyber-attacks have become commonplace for Australian companies. More than half of respondents said they had experienced one or more of these risks in their last three years of operation.

The same EY survey found that boards are failing to focus on strategic issues such as transformation planning because they are too bogged down in the minutiae of financial reporting and traditional risk and compliance: 43% of board members spend the most time on financial reporting, but only 18% think this is important.

With greater regulatory enforcement of board requirements around fiduciary duties, balancing the necessary risk and compliance tasks with a focus on emerging risks, and challenges of tomorrow is becoming increasingly burdensome for boards.

Risk management is under pressure to evolve as a result of a shifting landscape and changing stakeholder expectations – it’s time for boards to rethink their appetite and approach to risk.

How can boards free themselves to focus on the big picture?

Revamp board composition

One way that boards can gain greater perspective on emerging risks is to review their current skills gaps and objectively ask themselves whether the current board composition is adequately equipped to cope with future and atypical risks.

While we are not advocating a radical overhaul of the board immediately, we see value in boards seeking out a broader range of perspectives by engaging with external subject matter experts, considering broader talent pools from different industries and less conventional backgrounds in addition to regularly engaging in programs such as reverse mentoring.

By developing a diverse pipeline of leaders for succession planning purposes, boards can expand their horizons when it comes to thinking strategically about emerging risks.

Boards should consider new directors who:

• Understand emerging risks

• Have expertise in complex technology platforms used by the organisation

• Know the issues and best practices in the company’s industry or parallel industries

• Make the board more diverse

• Have a good understanding of digital transformations and the underlying value proposition

• Can communicate the strengths, weaknesses, opportunities, and threats posed by management's proposed strategic approaches and tactical implementation plans

Promote greater diversity at board level

In spite of the almost daily debate about diversity in the global media, it seems boards are not convinced that evaluating board composition and augmenting skill sets would improve risk management oversight.

Only 30% of boards believe this would be effective, according to a survey from Ernst & Young. And only 6% of C-suite executives anticipate significant changes in leadership within the next 12 months, according to their Capital Confidence Barometer .

64% of boards say their organisations can effectively manage traditional risks including changes in regulation, drops in demand and increased borrowing costs.

Yet only 39% say their organisations can effectively manage atypical and emerging risks--such as threats associated with new technology, cybersecurity, the impact of climate emergencies--or internal risks.

This disconnect suggests that boards continue to remain stifled by short-term thinking and the priorities associated with traditional risks. Increasingly, it is critical to consider a longer time horizon when assessing strategy and risk – ideally more than five years – especially where emerging and atypical risks are concerned.

In today’s rapidly evolving business environment, ‘Big Picture’ thinking not only in terms of risk management but also in board composition is an essential element of effectively navigating future risks.

The biggest risk for organisations is not taking risks. In order to echo the customers, employees, stakeholders and communities they serve, boards must design their current and future composition to include a diverse perspective in the boardroom. Without this diversity, boards are unlikely to be as effective and therefore competitive going forward.

For example, Research shows that female representation on boards can be linked to better financial performance and better climate governance and innovation . By adding greater diversity to board compositions, boards can enhance the technical skillsets that are relevant to their unique operating environment and onboard individuals with greater soft skills such as collaboration, creativity and constructive challenge to unlock untapped thinking.

Leverage Technology

Boards should also look beyond their composition and structure to focus on how they can free themselves for more focused and strategic discussions that will lead to better decision-making.

One way boards can achieve this is by limiting the time spent on routine and administrative tasks. Technology – and artificial intelligence in particular – can be very helpful in reading, reviewing and validating financial reporting.

Equally, analysing large volumes of data over time using artificial intelligence can quickly establish trends and patterns that would have taken years to uncover due to the scope and speed of improvements that AI brings.

For example, The Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry found that banks had failed to put customers first. A culture that puts customers first is critical for long-term success in a competitive market.

Directors need to ensure that their organisations are competitive and ethical in their use of data. Large-scale data and AI usage is frequently the differentiator between thriving companies, which use these technologies to understand their customers and those that are failing to meet industry standards or not competing effectively.

However, fewer than one in five boards say their organisation is highly effective at leveraging data and technology or delivering timely, insight-driven reporting to the board.

What boards can do:

Put customer data on the agenda: Formally discuss how your company uses data, analytics and AI to win in a world where these technologies are growing in importance.
Assess skill levels and cultural barriers to data-driven decision-making: Which skills are needed?
Benchmark how you use customer data: How does your organisation stack up with competitors when it comes to leveraging data and artificial intelligence to mitigate risk?
Seek expertise: Take advice on Data use and how this relatively new and complex tool can be used to help expedite better decision-making and risk management.

Naturally, boards must ensure that any data or AI strategy is embedded in their enterprise strategy. And that means ensuring that there is robust governance over the ethical use of AI, so that it doesn't lead to unintentional bias and discrimination in order to build trust in AI and mitigate reputational risk.

Creating a culture and operating environment where customer signals can be identified, analysed and integrated into automated decision-making processes is the governance challenge of our times. Boards that are good at learning this will see exponential returns.

Embed purpose in governance and strategy

While there are significant threats today, the opportunities for strategic success are even greater. Technology disruption and sizeable shifts in customer expectations present significant risks for organisations but at the same stroke offer strategic opportunities for boards.

Stakeholders expect companies to drive societal impact, environmental sustainability, and inclusive growth. And 78% of respondents believe that a focus on sustainable and inclusive growth has been critical to building trust with stakeholders in today's uncertain times.

In today's rapidly changing business environment, organisations need to be able to adapt at a moment's notice. In order to do so, they must have a clear sense of their purpose and how it aligns with their strategy. This can help board members guide their companies through disruptive times and seize transformational opportunities.

One way to align your organisation's culture with its purpose is to consider compensation plans that reward board members, executives, and employees based on their progress in delivering long-term value to stakeholders in line with the business's purpose-led strategy. This can help build a culture that is more deeply aligned with organisational purpose

Questions for boards to consider:

Have you developed an active dialog with executive management about the role of artificial intelligence in reviewing and validating data to uncover insights into enterprise risks and opportunities?
Are you aware of the mechanisms and processes in place to ensure diversity is a key consideration or design principle when appointing new board members?
Do you have confidence that the purpose of your organisation, its board and individual directors is clear, understood and put into practice?

At ELR Executive we have over 20 years experience, ensuring we identify the right leadership talent for our clients boardrooms. If you'd like to learn more about how we can help you hire the right leadership talent, who can navigate your business forward, securing its competitive advantage to thrive in new markets, speak to us today .

Bringing in boardroom talent

debbie@elr.net.au (Debbie Morrison) — Fri, 24 Feb 2023 00:00:00 GMT

Do we have the right talent to fulfil our strategy?

It’s a question boards need to ask themselves to ensure that management walks the talk on performance, culture and values.

As businesses face the ongoing challenges brought about by inflation and a looming global recession, the importance of maintaining high performance, a strong culture and talent pipeline has become increasingly important for boards. In January last year, data from a PwC pulse survey found 48% of C-suite executives had identified talent acquisition and retention as the biggest concern facing their organisations .

Traditionally, the role of the board where talent is concerned was predominantly looking at succession planning, however, today we are seeing a shift where greater focus is applied to strategic talent acquisition to support business change, calling boards to ask questions such as;

If we implement transformative business changes, do we have access to the critical skills needed to drive them?
What is the health of the leadership pipeline, not only in terms of succession plans for the leadership team but for other critical roles?

For boards that need new talent, the process of appointing the right person can be challenging. Many boards' difficulties arise from their inability to tap into new talent pools and dedicate sufficient time to narrowing their search down to available candidates. This is often due to a lack of diversity and breadth of experience in their network.

Human capital is incredibly strategic, and attracting, developing, retaining, and deploying the best talent is a real source of competitive advantage. For the board, that involves a delicate balancing act because executing this is the role of management but it is the board’s role to ensure governance. So how can boards attract and hire the best talent and ensure executives are supported in addressing current and future challenges?

Make sure you have a good understanding of the role you're recruiting for

The recruitment of a new board member is a difficult task.

The fallout of getting it wrong can result in strategic splits, resignations, brand damage, factions, shareholder/stakeholder unrest, etc. However, if the organisation hires wisely, it can reap significant benefits.

Before the process of recruiting a new board member begins, it's essential to have clarity on the needs of the organisation and the capacity in which this new role will help meet those needs and add value.

One way to understand the skill composition of your board, is to conduct a skills audit. Reviewing board members' skills can help highlight the needs of the company and how to best serve those needs by ensuring that the board is as well-rounded as possible.

Comparing the skills matrix to the organisation’s strategic plan can assist in identifying where the organisation’s skills gaps are in relation to the organisation's strategic ambitions. This will help refine and focus your candidate selection criteria and subsequent candidate search.

It’s also important to think about how they will work with the business and add value. Specifically, what value do you expect the newly appointed individual to deliver to the board and the organisation?

Questions to address should include:

What do we expect in terms of ROI form this appointment?
Are we reliant on this person bringing networks and related business opportunities?
How will they contribute to brand recognition through their reputation or contacts?
How will they contribute to improving the overall governance?
Do we expect them to bring industry experience, and if so, which industry?
How will we measure their success?

It’s also important to consider the structures they’ll need to succeed and how their work and expertise are best applied.

Be clear about how much time your board wants to devote to finding a new member.

The board can play a powerful role in identifying suitable candidates and deciding which profiles are best suited for the role but with busy agendas and limited time to dedicate to the process, great people can easily slip through the cracks.

Statistically, most organisations recruit new Directors by using personal connections . But is it the best way to find the right board director?

Boards often have limited reach with personal connections and friends or associates, this narrow talent pool inherently increases the risk of appointing individuals who are more inclined to tolerate a ‘group think’ mentality, thereby limiting the board’s effectiveness and representation of the stakeholders.

Investing in an experienced search partner will mitigate the risk of a search process and free up valuable time, enabling the board to focus on its responsibilities.

Specialist executive search partners have access to broad networks and talent resources that you would ordinarily not have easy access to. In addition to conducting a rigorous selection process, specialist executive search partners can advise on the composition of the selection and interview panels that need to be established, providing guidelines tailored to the nature of the appointment.

Is your Employer's Value Proposition supporting your efforts

Experienced executives and board members understand that any appointment they take comes with some risk. Financial and legal risks aside, reputational damage can be devastating. For most executives and board members, reputation is everything. Taking on the wrong appointment can be detrimental to their board & executive careers.

Boards seeking to attract new members must proactively alleviate any potential concerns that your organisation is a risk. It’s critical that the business embody and present its benefits; well-managed, supportive and progressive in making informed and robust governance decisions aligned to strong values and principles.

During the selection and interview process, boards must be able to articulate the value of the role and the organisation and, if appointed, how candidates can have a genuine impact.

Discuss the importance of diversity

The benefits of diversity are many. Diversity helps create a better working environment and inclusive culture, which in turn helps generate new ideas. A more innovative culture can help your business grow and thrive in an increasingly competitive market. According to McKinsey & Company , an analysis of companies in the S&P 500 to identify top performers in board diversity – defined as those with the highest percentage of women on their boards as of August 2016 – showed that women occupied at least 33% of board seats among the top 50 companies (up to nearly 60% for the highest percentage).

Some companies have already achieved this goal: Amazon's board has six women out of 14 members; Facebook's board has four women out of 11 members; and Alphabet (Google) has three out of eight directors who are female.

Diversity is not just about gender but also ethnicity, culture, age and experience.

Fresh ideas and perspectives can help drive performance at all levels.

When boards are searching for candidates, it's important to remember that not all people with different perspectives are created equal. You want people who have a proven track record of success and will be able to make meaningful contributions without disrupting the team or creating barriers.

Be open-minded about the skills required for success in your role; don't assume that someone needs years of experience before they can succeed on your board (or even at all).

With boardroom vacancies on the incraese, you need to make sure that your executive search agency has the right experience, knowledge and resources to deliver quality candidates.

A good executive search agency will have the experience and networks to help you select the best candidate for your boardroom. They'll know how to find professionals with the right skills, who are a cultural fit for your organisation, as well as be able to identify potential candidates that may not be on your radar but could be suitable for other roles in the business.

ELR Executive has over 20 years of experience finding exceptional leadership talent across the FMCG and Food and Beverage Industries. Contact us today.

5 ways to screen executives for strategic thinking

debbie@elr.net.au (Debbie Morrison) — Tue, 14 Feb 2023 00:45:00 GMT

As an employer, you want to hire the best leaders for your organisation. And these days, it's not enough for executives to simply be good at what they do—they also need to demonstrate that they can think strategically about how they will lead an organisation, and take a long-term view of how their role fits into the bigger picture.

However, effectively assessing whether an executive candidate is a strategic thinker is difficult. Most leaders claim to be strategic, and most assessments give you false positives. Yet, the ability to think strategically was ranked the most in-demand skill amongst future board members and company executives, with leadership and management skills and experience ranked second according to research by the Governance Institute of Australia.

This demonstrates that future board members will be valued for a skillset that goes beyond sector-specific experience. This is because people who are able to think strategically add value in a number of ways. By looking to the future, forward-looking boards help an organisation prepare for the unexpected. Second, their big-picture perspective can help an organisation avoid major problems and potential conflicts by understanding the interrelationships between different business elements and how they relate to one another. Third, their external focus and desire to learn and understand the world around them ensure that the company remains aware of emerging trends in the economy and the industry. And fourth, they have a global perspective.

Executives that are strategic thinkers have a global perspective. They understand the importance of looking at the big picture and how every action they take impacts the company as a whole. They're able to see how their role as an executive fits into the overall operation of the company, and they know how to use their expertise to make decisions that will help grow the company.

When searching for business leaders or executives that are strategic-minded, a good starting point is to consider looking for candidates who have worked at companies with international expansion plans or those who have experience working in multiple countries. A candidate with these skills has typically had to understand how his or her role as an executive fits within a larger plan for growth, which is something all good strategic thinkers do well.

Here are 5 ways you can screen for that kind of thinking:

Explore their Failures rather than their successes.

It stands to reason that most executive resumes detail a candidate's performance in terms of their success. The problem is this doesn’t give much of an indication as to how these individuals will perform in times of difficulty, nor does it give much insight into their ability to think strategically.

By asking them about their previous appointments in terms of what lessons they learned from each one, and how those lessons have helped them grow as a professional we can gain an insight into how they challenge conventional thinking, analyse what is changing and predict where the business is going versus where it should be going.

For example: "What was the biggest lesson you took away from your last executive position?" or "What was the most interesting project you worked on there?" These questions will help you determine if this candidate has been able to learn and adapt over time or has been stuck in a rut repeating past mistakes over and over again; either way could indicate a lack of strategic thinking skills.

Give Them a Real Problem to Solve.

The most effective approach is to give applicants a problem to solve during the interview. You can use a real unsolved problem, which has the advantage of allowing several potential solutions. You can also use a problem that you have already solved as an example, which means that you will already know the steps necessary to solve it.

The best problems are ones that are complex enough to require some thought, but not so complex that they’re impossible to solve. For example: “Why is our supply chain team failing at maintaining reliable and profitable supply?” This question will test whether your candidate can think strategically about how the issue relates to other parts of the organisation, as well as what solutions could help resolve it.

To properly evaluate the candidate's skills and abilities, ask them to walk you through the steps they would take to investigate and resolve a problem. The key to a successful response depends on the nature of the problem you have asked them to solve. But every answer should include:

Information gathering
compiling a list of potential problems
checking the strategic plan
review company and industry multiyear forecasts
identify and track key industry and economic environmental factors
identify and consult with key stakeholders across departments and business units

In addition to searching for these steps, you may also look for the following in their answers:

identify interconnected and interdependent functional areas, including predictive metrics
pretest solutions with your customers
measure success after implementation and use data to make adjustments

In most cases, failing to perform critical procedures (e.g., checking with the customer) would be a clear knockout factor for any candidate. You should look for an answer that does not rely too heavily on tactical actions and contains a strategic focus.

Ask Them to Review a Flawed Strategic Plan and Identify Potential Problems.

You can also have executive candidates review a flawed strategic plan that outlines your company's goals and objectives. After they've read your company’s current strategic plan, ask them to identify potential problems with it, recommend solutions and present their findings. They should also be able to explain how they came up with their recommendations in the first place. This is a good way to identify their capability to problem solve but will also highlight whether they think strategically about the problem.

Ask Specific Interview Questions.

There are several questions that can reveal whether a candidate has strategic thinking skills, we have outlined some examples below:

How would you go about identifying the interrelationships and interdependencies in a proposed strategic plan?
When working on a strategic project in your current role, how do you identify the relevant stakeholders across the company?
What steps have you taken during your career to improve your strategic thinking skills?
What measures or indicators do you use to track and assess your growth in this area?
How would you identify which candidates for a job are strategic thinkers? (The answer to this question will give you insight into the candidate's depth of understanding about the topic, as well as how they describe themselves against the criteria. It can also be useful in revealing ideas for how to improve your own assessment.)

Make sure you ask them to think about their own experience and give examples of how they have solved problems in the past, or adapt to change.

Finally, ask for examples of when they had to deal with conflict - this is important because it shows that they can problem-solve effectively under pressure and make decisions based on what's most important for the team or organisation.

Ask Questions That Reveal How Much They Value Strategic Thinking.

Many executives believe there are strategic in their thinking but do little to evaluate this. Therefore, it can be difficult to understand how much value these executives place on strategic thinking compared to conventional approaches to problem-solving. The best way to determine how much a candidate values strategic thinking is to ask them directly. You can do this by asking questions like:

What do you think is the most important thing to do in order to achieve your goals?
How would you solve a problem that you have encountered in the past?

Alternatively, you can ask the candidate to list their capabilities from most to least important. This will provide insight and an understanding of how important they think strategic capabilities are.

Consider the Questions They Ask You.

To assess a candidate's strategic mindset, consider the questions they ask you. If they are asking about your company’s goals or challenges—or if their questions show an interest in how their role contributes to the organisation's strategic goals—they are likely demonstrating a strategic mindset.

When interviewing, the best candidates may ask questions related to planned changes in the company’s strategy, the opportunities they’ll have to contribute to strategy, and what’s happening in the department. Because the best thinkers are typically action-oriented, they will likely ask questions related to how ideas will be implemented. This can often be a good indicator of someone who is strategic in their thinking.

If you want to know whether or not executive candidates have strategic thinking skills, it’s important to ask them the right questions. Those listed above will help you determine if they have what it takes. However, there are other ways of screening for these skills as well: look for strategic phrases within the answers to your standard interview questions, ask questions that reveal how much they value strategic thinking, consider the questions they ask you and lastly; examine their past work experience carefully for strategic approaches to problem-solving and goal attainment.

At ELR Executive we have refined our screening process over the course of 20 years, ensuring we identify the right leadership talent for our clients. If you'd like to learn more about how we can help you hire the right leadership talent, who can navigate your business forward, securing its competitive advantage to thrive in new markets, speak to us today .

Does your boardroom need subject matter experts?

debbie@elr.net.au (Debbie Morrison) — Thu, 09 Feb 2023 22:15:00 GMT

The business world is becoming increasingly complex, organisations must navigate ever-changing social attitudes, demographic shifts, and technological disruptions. In doing so, its imperative organisations not only understand these trends but respond to them by harnessing them to their advantage.

The phrase 'diversity' has become a bit of a catch-all term in the boardroom. While there has been much discourse on diversity, particularly around improving gender, age and cultural diversity, another critical aspect of boardroom diversity is the depth and breadth of subject matter expertise.

Does your boardroom have a balance of skills and diversity for oversight, governance and decision-making?

Ultimately tasked with providing good governance of an organisation, board members are also tasked with making decisions that affect the future of the company. While the board should be able to ask the right questions, they must also fully understand the business itself, its market, its competition, its customers and the products/services being offered by your organisation. In this capacity Subject matter experts can be invaluable resources when it comes time to make decisions.

‘Effective decisions result from a systematic process, with clearly defined elements, that is handled in a distinct sequence of steps’ [Drucker, 1967].

Whilst Drucker's statement still rings true, in today's data-driven world, decisions are increasingly only as good as the quality of information or expert opinion decision-makers have access to.

As a result, it is critical for companies to have access to the best possible data. This means boards must have a diversity of stakeholders who are considered subject matter experts to participate in the strategic decision-making process otherwise organisations run the risk of making decisions that could result in them getting left behind.

Subject matter experts not only add a balance of skills and diversity for oversight, governance and decision-making but having a mix of directors with different backgrounds and expertise bring different perspectives to the decision-making process. This enables boards to better align their decisions with stakeholder interests – a critical competency in securing a competitive advantage.

Know when to add external talent to your board.

In today's business environment, it's increasingly common for organisations to bring in outside expertise to help them navigate important decisions. For example, if your company is considering a merger or acquisition, you'll likely want to bring in a financial expert to evaluate the potential costs and benefits. Or if you're working on a new product launch, you might want to bring in an industry expert to give feedback on its viability.

Recognising when the appointment of a subject matter expert is the right step for establishing a strong board is an important consideration. If your organisation is experiencing any of the following, you may want to consider adding an additional member to your board:

When you're expanding into new areas of business or new markets. This can be a good time to bring in a strategic partner or advisor who knows the industry and can guide you through the nuances of the business area or market.
When you need to expand your knowledge base beyond what's available internally. For example, if a critical project involves developing a new product or service, it might make sense to bring on someone with expertise in that area rather than relying on the insights of existing employees.
When there are major strategic changes coming down the pipeline (e.g., going from the startup phase into growth).

Fresh perspectives in the boardroom

The boardroom is not just a place for executives to discuss company strategy or make decisions. It's also a place for subject matter experts to share their knowledge, which can help drive profitable growth and innovation.

In fact, according to a study by McKinsey & Company, "Subject Matter Experts are the most important external source of information for boards."

This makes sense: The average CEO has access to a network of only about 150 people on average, who have relevant expertise in their industry. Yet many boards include members from outside the organisation who may have experience with similar companies or industries—and this unique perspective can be invaluable.

Here are five considerations for having a diverse board, and how to recruit and retain the right subject matter experts:

Having a diverse board is an important part of any company’s strategy for profitable growth. In the current economic climate where the pace of innovation is accelerating, diversity in thought leadership can help drive your business forward.
A well-rounded board brings together people with experience across many industries and functions who can bring new ideas into your decision-making process—and that will help you outperform your competitors over time.

Prioritising Your Needs

Specialist expertise can often be a very narrow field, so as a first step it is important to decide exactly what you want to get out of appointing a Subject Matter Expert. Their knowledge and insight can result in changes to many areas of the business from; manufacturing, product development, human resources, to sales and customer support, and even your marketing team could benefit from an SME serving in their specific areas.

Keeping an open mind is essential to this process. Industry experts also tend to be well-networked and can often recommend other individuals who can add value or insight to unique or industry-specific challenges. Taking a holistic view of the knowledge gaps within the board and providing transparency to Subject Matter Experts during the process can help in identifying hidden gaps you may not have considered. Giving thought to adjacent industries that serve the same vendors or customers or have business challenges that are compatible with your own can be useful. Often, your best opportunities to identify the right people reside in these adjacent industries.

So the first step is deciding on the top functions or capabilities you need an SME to deliver, which will provide clarity to your search.

Craft a Clear Job Description

Once you decide what your SME needs to accomplish, it is vital that you outline what role they will play in advising the board and supporting the decision-making process. Clarity on the capacity in which they will work with the organisation is key.

Will they function as part of a committee? Who will they be accountable to, and in what capacity?

If they’re not advising as board members, but via a committee, as subject matter specialists counselling executive management, how will the decision to support or implement their recommendations be taken and by whom – as with any other management proposal – and in turn, who will take responsibility for the success or failure of its implementation?

Crafting a clear job description that outlines their obligations, what is expected of them and how their advice and expertise will be leveraged can help ensure the necessary structures are in place to get the best from them.

Look in the Right Places

Unsurprisingly, these individuals are in high demand and rarely looking for new opportunities, rather they are usually employed and not actively checking job boards or platforms such as LinkedIn.

When seeking very specific candidates, ensure you’re looking in the right places. Boards should start by leaning on their immediate network and working with the executive management team to identify industry experts that might already reside within the group's collective talent pool.

Networking and industry events are obvious but useful avenues to explore when identifying and engaging with subject matter experts. Of course, this should be an ongoing focus of the boards and executive management team since this approach does little to assist time-sensitive or immediate boardroom needs.

Develop Your Own

Another viable long-term strategy is to proactively develop your own Subject Matter Experts. You may already have highly experienced, motivated leaders already in your organisation who have acquired a high degree of expertise and could become subject matter experts over time given the right focus and support.

This strategy will require some investment (in learning, credentials, time away from projects, etc.), but it’s worth considering. Providing growth and development opportunities like this for existing leaders is a great way to boost morale and foster a positive work culture that values team members. However, this approach does have its limitations, especially in instances where the expertise you seek is in areas outside of your domain.

Work With A Specialist Executive Search Firm

Finding Subject Matter Experts in very specific disciplines is just not that easy, but partnering with a specialist executive search firm with expertise in the FMCG or Food & Beverage industry can not only provide valuable insights into the talent pools, industry networks and individuals that can solve your problems and bring much-needed expertise into the boardroom across a range of functional disciplines. ELR Executive has been a leader in the Executive Search specifically for the FMCG industry for over 20 years.

In Summary, the answer is yes to this question. In fact, subject matter experts are becoming increasingly necessary in a boardroom environment. As companies grow and become more complex, their boards need to be able to provide strategic advice on topics that aren't directly related but still affect company performance. The best way for boards to do this is by bringing in experts across various functional disciplines who can help provide insight throughout the decision-making process, ensuring that boards are advising and supporting executives in achieving the strategic objectives of the business.

4 ways to build a culture of transparency, trust and respect between board and management

debbie@elr.net.au (Debbie Morrison) — Wed, 08 Feb 2023 00:30:00 GMT

When it comes to company culture, we often focus on the role of employees. But in fact, a key component of building a positive corporate culture is ensuring that the relationship between management and boards works smoothly. This can be particularly challenging for companies that have undergone rapid growth or are transitioning from startup to scale-up organisation.

A CEO who has grown up in an environment where everyone worked together in one office may find it difficult to suddenly manage geographically dispersed teams that require frequent face-time with board members. On the flip side, directors may not understand their responsibilities as leaders on their own teams or within broader organisations at large. Here are some tips for building better communication between boards and management:

Management and boardroom harmony begins with communication.

Communication is a two-way street. The CEO and the Board of Directors are equally responsible for communicating with each other. This can be difficult, especially when executives and management teams are busy running the company day-to-day and board meetings are not happening regularly. However, it's important to remember that communication is a key component of any good relationship.

The first step in building trust between you and your board members is ensuring that they have access to everything they need from you so that they can have confidence in your leadership and execution abilities. They need timely updates on anything happening within the business or outside of it (e.g., new products, sales figures, customer/community sentiment).

If necessary, make sure someone from the management team (ideally the CEO) regularly attends board meetings so there isn't any confusion about what's going on within the company at large or within specific departments/units/business lines/etc.

Encourage informal communications.

Informal communications are a great way to keep board members in the loop and an effective way to build trust and respect between executives and the board. In addition to the more formal meetings and calls with executive leaders, encourage informal communication via email, chat, phone or video conferencing so that you can pick up on any red flags early on. This will help prevent miscommunications when no one is monitoring what's happening in the organisation.

Give executives the tools and the support to thrive.

The best thing you can do to build a positive culture of transparency and trust is to provide your executives with the tools they need to do their job. This includes giving them adequate resources, as well as support when they need it. If your executive team has been struggling lately, consider rewarding them by offering training for growth and development. While this might sound expensive, remember that helping your employees grow within their roles will actually save time for everyone involved in the long run—as long as those employees are happy with their work environments.

Keep lines of communication open year-round.

While the need for transparency, trust and respect is obvious during every board review process, it’s important to keep these lines of communication open year-round. That way, you’ll be able to get a sense of how the board feels about the leadership team before any big decisions come down the pipe. Board members can also communicate when they think something needs to change or what they think could be done better so that everyone is on the same page going forward.

In addition to keeping lines of communication open throughout the year, there are some key things that boards and management should do together in order to build strong relationships:

Proactively make time to communicate regularly with each other
Be empathetic—don’t take things personally! It's not personal when someone disagrees with you; they're just giving their opinion based on their experience and expertise

When management and boards work in tandem, everyone wins.

Building a culture of transparency, trust and respect between the board and management is not only good for the organisation, but it’s also good for individual executives. The board needs to know that they can rely on the executive and management team to tell them what’s going on – good and bad. When there are no secrets between the two groups, everyone wins.

Here are four steps to get started:

Encourage informal communications between your management team and the board chair. There may be times when an informal conversation is more appropriate than sending out a formal update email or presentation deck.
Give executives the tools they need to communicate effectively with the board members who report directly to them (the CEO), as well as those who don’t report directly (audit committee members). You should also help them understand each other's roles so there are no misunderstandings about whose role it is to take actionable steps in response to issues uncovered during a review process or audit engagement.
Keep lines of communication open year-round -- not just when audits happen. That means communicating regularly throughout your fiscal year so people can share information openly without fear of being reprimanded or penalised if something goes wrong later down the road due simply because nobody knew about it until then.

If you want your company to thrive, then you need to foster an environment where trust and respect are the norms. This might sound like an uphill battle in some organisations, but it doesn’t have to be if you take a proactive approach that includes communicating openly with each other at every level of the organisation. By doing so, both boards and managers can work together toward a common goal: making sure that everyone on staff feels valued and appreciated for their contributions to the business.

Why greater stakeholder influence on board agendas is a good thing

debbie@elr.net.au (Debbie Morrison) — Wed, 01 Feb 2023 02:11:40 GMT

The world of business is changing rapidly.

New technologies like AI and machine learning are transforming the way we do everything from driving cars to delivering goods. And while these technologies will make our lives better, they also have the potential to create challenges for business leaders who don't understand them well enough or don't have time to learn them.

So how do we prepare our companies and ourselves for this new era?

By ensuring that people with different perspectives are involved in decision-making processes at the very beginning of the innovation cycle—when key decisions about process change and technology adoption are made—we can ensure that these decisions reflect not just what's possible now but what may be possible in ten years' time when these technologies become more commonplace.

Today’s board directors must wrestle with an ever-expanding array of complex, strategic issues.

As you know, today’s business environment is changing at lightning speed. From new technologies and shifting consumer preferences to global economic forces, the board director must be continually proactive in addressing the challenges of operating the business. In addition, increasing shareholder activism has led to a greater expectation on boards to be visionary and strategic in their thinking.

The need for creative thinking becomes even more pressing as boards are expected to have more diverse skills than ever before—skills that are not necessarily related directly with operations or finance but rather with strategy, globalization and innovation. This means that investment decisions cannot rely only on financial projections but must take into account broader stakeholder viewpoints as well.

Those issues are getting more complex

We’re seeing a number of trends that are increasing the complexity and importance of board agendas:

The number of issues that boards need to discuss is increasing. This includes, for instance, the amount of money being raised by start-ups, or the increase in mergers and acquisitions.
The complexity of those issues is increasing. For example, there are more data sources than ever before; different stakeholders have different opinions on what data matters most; and so on.
The importance of the issues is increasing because they will impact the success (or failure) of your organisation in new ways going forward - whether it's your ability to scale operations or hire top talent.

Board directors are becoming more diverse, but not fast enough.

Greater diversity on boards is a good thing. The percentage of public companies with female directors has doubled in the last 10 years, but it's still far lower than one would hope—just 19% of board seats are held by women.

But gender is just one dimension of diversity. You also want to make sure that your board has members from different industries and geographies; people who understand the latest technology trends or who have experience in emerging markets; and those with different backgrounds, such as consumers rather than employees or shareholders.

These diverse viewpoints can help companies identify new opportunities, create innovative products and services for customers, improve their supply chains and harness new sources of funding (such as through crowdfunding). In short: Diversity can help companies thrive in an increasingly complex world where competition is fierce.

Directors and CEOs need a new way to work together.

We believe that the current model of shareholder primacy and corporate governance is broken. It's time for directors and CEOs to change their approach.

New models of working are based on a premise of shared leadership between the board and management. This requires both parties to reframe their thinking about governance, which has much broader implications than simply making room for more discussion at the board level.

Key elements include:

Greater stakeholder influence over agenda items (e.g., environmental issues)
Larger budgets devoted to non-financial performance metrics (e.g., employee satisfaction)

Frameworks for collaboration between boards and executive teams.

There are a number of frameworks that have emerged to formalise collaboration between boards and executive teams. The most prominent is the Non-Executive Directors' Report (NED), developed by the UK Corporate Governance Code Committee in 2006. The NED aims to ensure that non-executive directors are involved in strategic decision-making and provide a link between the board and its external stakeholders.

The US Council of Institutional Investors (CII) also developed a framework for shareholder engagement that encourages greater engagement with institutional shareholders through an annual meeting review process. This helps build relationships with investors before proxy voting season begins, so companies can address their concerns before they have any impact on voting results at annual general meetings.

There are many more governance frameworks but ultimately, it is the responsibility of non-executive directors to ensure that communication channels between the board and executive teams are functioning effectively.

Board Composition is a critical factor in effective stakeholder governance

A board should be made up of directors that have broad experience and understand the role of directors. This is achieved through a number of methods including inviting people to join the board who bring with them different experiences and skills, encouraging intergenerational breadth on the board, ensuring there are relevant stakeholder groups represented in order to achieve diverse insights into how to make strategic decisions based on broader perspectives.

To identify particular stakeholder expertise, boards may wish to consider using an organisation's skills matrix. Having an extensive induction process that includes education on key stakeholders is a critical step (this could include site visits or briefings on the organisation’s impact on the community). Ongoing education on particular stakeholder issues is also essential in enabling boards to better understand and address stakeholder priorities.

Key questions for the board to ask:

· Does the board regularly review the effectiveness of the organisation’s stakeholder governance vision/strategy?

· What independent, external data speaks to the organisation’s relations and stakeholder impact?

· Should the board engage an external party to assess the state of our stakeholder relations?

Boards should focus on the future of their business and industry.

Many companies focus their board agendas on compliance and governance – both of which are important, but boards should spend time exploring the future of their business and industry.

Traditionally, the core responsibilities of corporate boards include governance and risk oversight. However, there are many other things that influence an organisation’s success: stakeholders like shareholders (who own shares), employees (who provide labour or services), customers (who buy goods or services), suppliers or vendors (who sell products to the company) and communities (where businesses operate) are increasingly shaping board agendas through the decisions they are making such as; resignations, purchasing preferences and trade terms.

Direct engagement with customers

Boards also benefit from engaging directly with customers. This form of engagement humanises issues and can remind a board and an organisation of its core purpose. This does not need to happen all the time, but there can be a high return on investment when it does.

Some organisations begin their board meetings with a client story, or a client appearing before the board to share his or her experience with the organisation. This helps keep board members focused on meeting the needs of customers, and reminds them of the organisation's impact.

Customer advocates

In the financial services and energy sectors, customer advocates that report directly to the board or management are increasingly common. Whilst these interactions need not be regular but can provide boards invaluable intel. Advocates who work at the coalface and are often aware of systemic issues that could have significant reputational repercussions long before senior management.

Direct employee-board engagement

A complete picture of workplace culture can be gained through employee surveys, ‘town hall’ meetings, site visits and floor-walks. However, boards should also establish regular and independent opportunities for engagement with employees that enable the employee's own lens on culture, inclusion and safety issues.

It is important for directors to stay informed about the day-to-day operations of an organisation. One effective way to do this is by inviting employees to present and respond to questions about operational issues, projects, and initiatives at board meetings.

The above frameworks and tools are designed to help boards and executive teams work together to develop a shared understanding of the business and its future. They can be used in different ways, from providing a framework for conversations between directors and executives to supporting collaboration between different groups within an organisation. But their purpose is always the same: ensuring that boards and executives work together effectively so that they’re able to tackle today’s complex issues (and tomorrow's) more effectively.

Why eCommerce & Direct-To-Consumer is the future for Consumer Goods companies

debbie@elr.net.au (Debbie Morrison) — Wed, 16 Nov 2022 20:45:00 GMT

Australia's FMCG industry is in a state of flux, with special thanks to the COVID-19 pandemic. As each wave of coronavirus infection spread across the nation, brick and mortar stores have been forced to shutter their doors—leaving many FMCG companies struggling to stay afloat.

But all’s not lost for the retail world. Indeed, while wholesalers and traditional retail channels fell by the wayside, another challenger rose to the occasion: eCommerce.

In April 2020, during the first few months of lockdown, over 200,000 Australian shoppers started shopping online for the first time. This surge in eCommerce spending would barrel onwards to reach US$62.3 billion in 2022 , up from US$49 billion in 2021 and US$38 billion in 2020.

But the pandemic isn't the only reason why eCommerce is on the rise.

In fact, it's just one of many factors that are coming together to create a perfect storm for FMCG companies to finally make the switch to direct-to-consumer (D2C) models. And in order to secure a competitive foothold in the growing D2C space, companies need to take advantage of eCommerce and digital transformation as a whole.

Let's take a look at why eCommerce and D2C are set to shake the foundations of the FMCG space.

1. eCommerce is growing—fast.

There's no denying that eCommerce is on a meteoric rise, with the figures we provided above showing this in no uncertain terms. In fact, it's growing at such a rapid pace that it's set to overtake traditional brick-and-mortar retail within the next decade.

This is thanks in part to the ever-growing list of eCommerce platforms and marketplaces, such as Amazon and Catch, which are making it easier than ever for companies to sell online. But it's also due to the fact that consumers are becoming more comfortable with buying things sight unseen. In other words, they're becoming more trusting of the online shopping experience.

2. There is a growing focus on going local.

The pandemic has also shone a light on the importance of supporting local businesses. Indeed, as global supply chains have been disrupted, many consumers have turned to local companies in order to get the items they need.

This trend is likely to continue even after the pandemic ends, as people have become more aware of the importance of buying from brands that are closer to home. In fact, a recent study found that 71% of Australian consumers said they were more likely to buy products from a company that was based in Australia.

In response, eCommerce marketplaces such as eBay are making it easier for local companies to find an audience, whereas they'd have a much more difficult time breaking into traditional retail channels.

3. D2C makes for more efficient, resilient supply chains.

The traditional retail model—in which FMCG companies sell their products to wholesalers, who then sell them on to retailers, who finally sell them to consumers—is no longer fit for purpose. In fact, it's become increasingly convoluted and outdated, especially in the age of eCommerce.

What's more, as we've seen with the COVID-19 pandemic, this model is also extremely vulnerable to disruption. This is because there are so many different links in the chain that it only takes one weak link to cause the whole system to break down.

On the other hand, D2C models are much more streamlined, as there is no need for wholesalers or retailers. This not only makes them more efficient but also much more robust in the face of disruption.

4. D2C models allow brands to better connect with their customers.

D2C models have a number of advantages over traditional retail models, the most notable of which is that they allow companies to build direct relationships with their customers. This is thanks to the fact that they cut out the middleman, giving companies direct access to customer data and feedback.

What's more, D2C models also give companies more control over their pricing, product development, and branding. And because they're not relying on wholesalers or retailers to sell their products, they're far more agile and responsive to change.

5. Digital, online payments are growing in popularity.

Another factor that's driving the growth of eCommerce and D2C is the increasing popularity of digital, online payments. Indeed, as consumers become more comfortable with making online purchases, they're also becoming more comfortable with using digital payment methods.

And that's not just limited to the usual suspects, such as PayPal, Apple Pay, and Google Pay.

There are also Buy Now, Pay Later services such as Afterpay, which allow users to pay in installments without using a credit card. There are even subscription services like Amazon Prime, as well as online marketplaces such as Facebook Marketplace that make it easier for both merchants and other consumers to sell to people directly.

A digital-driven future for FMCG

The writing is on the wall—eCommerce and D2C are the future for FMCG companies. Thanks to a number of factors, such as the growing popularity of online shopping and the increasing use of digital payment methods, more and more companies are making the switch to the D2C model.

It's clear that digital transformation is pivotal for FMCG companies that want to stay ahead of the curve and remain competitive in the years to come. And there's no reason why your company can't be one of them—but only with the right people in place to lead the charge.

At ELR Executive, we've spent the last two decades building the expertise and network of suppliers and retailers that will allow your business to succeed in the digital age. So, if you're ready to make the switch to eCommerce and D2C, we can help. We've put together a guide that outlines the key steps you need to take to find the right people for the job.

Download your copy at the link below.

ELR Executive Guide to Building a Culture of High Performance

And if you're ready to take your business to the next level, you can reach out today to see how we can help you find the leadership you need to succeed.

How Companies Can Turn Sustainability into A Business Purpose

debbie@elr.net.au (Debbie Morrison) — Wed, 02 Nov 2022 20:45:00 GMT

Which would you rather buy, biodegradable soap that saves oil-covered ducklings or another brand that just smells like an overripe grapefruit?

Now, we suspect you might lean towards the one that saves ducklings. And here’s why that is.

As consumers, many of us are becoming more aware of our purchasing decisions’ environmental and social impact. We’re increasingly looking for brands that align with our values. In fact, 61% of Australians say that companies’ sustainability actions influence whether they buy the product or not.

This trend presents both a challenge and an opportunity for companies. On the one hand, there is a risk of losing customers if your brand is perceived as unsustainable. But on the other hand, there is a huge opportunity to create new and loyal customers by making sustainability a core part of your business purpose.

So, how do you get started?

In this article, we will explore how companies can turn sustainability into a business purpose. We’ll discuss how you can integrate sustainability into your company culture, operations, and marketing strategy, and in doing so, ultimately create more value.

What is Sustainability?

Sustainability is often used interchangeably with terms like “environmentalism” and “social responsibility,” but in reality, sustainability is about meeting the needs of the present without compromising the ability of future generations to meet their own needs. Sustainability is about creating a balance between environmental, social, and economic systems so we can thrive now and in the future.

That being said, incorporating sustainability into your business means more than just being “green” or doing good deeds. It requires a fundamental shift in the way you think about business. Rather than seeing sustainability as a compliance cost or an opportunity to do good PR, businesses need to see it as a potential competitive advantage and a way to create more value for your business.

4 Ways to Make Sustainability a Business Purpose

Making sustainability a business purpose is not a quick or easy task. It requires a long-term commitment from all levels of your organisation. And as Jochen Zeitz , the President and CEO of Harley-Davidson, puts it so well, “Sustainability is no longer about doing less harm. It’s about doing more good.”

Here are four ways to make your business more sustainable:

1. Incorporate Sustainability Into Your Corporate Culture

Sustainability should be a part of your company culture, not just an add-on or afterthought. Every employee should understand the importance of sustainability and how it relates to their jobーfrom the highest-ranking managers to the interns you hired the last week.

You can accomplish this through sustainability-themed incentives, training programs, and other efforts that will weave the culture of sustainability into the seams. You have to start from the inside out for customers to really buy into it, or they’ll think that it’s another marketing strategy.

Consider the luxury fashion brands LVMH and Kerin , which had been scrutinized for encouraging eating disorders among models. To integrate sustainability into their company culture, the two brands established new model standards that prioritise health and weightーa minimum size 34 for women and 44 for men. That way, they are not only setting an industry precedent, but also ensuring the well-being of their models.

It doesn’t always have to be about making environmentally-friendly products. Sometimes, you have to look at the bigger picture and take note of the societal impact you’re making.

2. Make Sustainability a Part of Your Operations

Of course, having a sustainable company culture should inevitably lead to having sustainable products. In other words, integrating sustainability into your operations is essential to making it a business purpose. You can do this in a variety of ways, such as:

Using sustainable materials
Implementing energy-saving products
Supporting local communities

Your goal is to analyse the lifecycle of your end-products and ensure that each stage is as sustainable as possible. Determine the key performance indicators that’ll lead you towards sustainability, and you’ll be surprised with how many product innovations and improvements you can also unearth in the process.

For example, some companies like Nike have switched to using recycled materials in their products, and have even created shoes entirely from recycled materials . Others have installed solar panels or wind turbines to power their facilities, such as Apple . Still, others have established programs to help employees reduce their carbon footprint.

As a result, they all created new ways to do business that are not only more sustainable but also more efficient and cost-effective.

3. Communicate Your Commitment to Sustainability

Your customers want to know that you are committed to sustainability. And not that you’re “greenwashing” everything. They want to see it in the way you communicate authentically about your company and products. If you’ve ever seen a campaign done by Patagonia , you know how effective this can be.

Find a creative and strategic way to ensure that your website, social media, and marketing materials reflect your commitment to sustainability. You can also use eco-friendly packaging, print ads, and social media to tell your story and drive the point. And, don’t forget to bring your employees on board with your messaging by training them to communicate effectively about sustainabilityーeveryone needs to share the same message for customers to see the commitment.

The more transparent and open your company is about its culture and sustainable business practices, the more customers will trust you. And that’s invaluable in today’s world.

4. Collaborate with Other Companies

Working with other companies is another excellent way to make progress on sustainability goals. By working together, you can make a more significant impact than you could alone. After all, having a shared value approach reconnects your company’s success with social progressーwhere everybody is affected by the decisions your company makes.

For example, some companies have formed consortiums to develop sustainable supply chains. Others have teamed up to create sustainable energy initiatives. There are many possibilities for collaborationーthe key is to find the right partners and get started.

Alternatively, you can also support existing sustainable initiatives that align with your company values, such as:

Renewable energy
Clean transportation
Green buildings

Get involved in the movement, and customers will realise just how serious your company is about being more sustainableーbecause you’re not only building a name for yourself, but you’re also getting behind on-the-ground projects that are already making a difference.

Sustainable Practices = Sustainable Business

Sustainability should be a business purpose because it’s the right thing to do for our planet and future generations. But it’s also good for business. A commitment to sustainability can help you save money, attract and retain employees, and boost your brand reputation.

It’s a win-win for everyone, even with the level of commitment and effort it requires from you.

Once you embed sustainability into your culture and operations, you’ll create a more sustainable future for each industry, company, and individual customer to live, earn, and become successful.

Do you need help improving your business operations?

Get in touch with our team to scale your startup towards success. With over two decades of experience and connections with international suppliers and retailers, ELR Executive can give your startup the leadership and find solutions to become more sustainable and thrive in the FMCG and Consumer Goods sector.

7 Lessons Learnt From FMCG Giants That Growth-Focused Companies Can Adopt

debbie@elr.net.au (Debbie Morrison) — Tue, 25 Oct 2022 22:53:40 GMT

Growing a business is similar to gardening. You nurture it, spend hours taking care of each plant, and do your best to ensure its survival. And just like how every plant has different needs to grow, there are different ways to grow a business.

The FMCG industry is one of the most competitive industries in the world, with a market projection of $15 Billion by 2025 . To survive and thrive in such a competitive environment, growth-focused FMCG companies have to learn from the successes and failures of the industry’s biggest players.

Here are 7 of the biggest lessons in the FMCG industry.

#1 — Don’t Underestimate the Importance of Innovation

Innovation is the key driver in generating more revenue in the FMCG industries. That’s why companies must constantly develop new products and services that capture consumers’ attention. Leveraging innovation gives you with an edge in the industry by increasing your profitability, productivity, and growth.

To make your products more innovative, you can focus on the following:

Create products that serve a new purpose or solve a new problem
Improve on existing products by making them better in terms of quality, design, or packaging
Create products that are unique in terms of taste, scent, or appearance

Coca-Cola is a great example of an FMCG industry that uses innovation to its advantage. Over the years, Coca-Cola has developed several innovative products, such as Ginger Coke , which launched in Australia in 2016.

The limited-edition flavour was the product of consumer research which revealed a high crossover between cola and ginger ale shoppers in Australia. Doing so helped Coca-Cola capture the attention of its Australian consumers and drive revenue growth for the company.

#2 — Prioritise Marketing Efforts

A common mistake that FMCG companies make is underestimating the importance of marketing.

The most successful FMCG brands have excelled by combining digital and social media marketing efforts. FMCG companies that don’t have a solid digital marketing strategy risk losing out on potential customers to their competitors who actually have invested in gaining a foothold.

A great example of a company that excels at marketing is Unilever. The company has over 500 brands in its portfolio, including Cheetos, Quaker Oats, and Tropicana. In 2020 alone, Unilever invested around $7 billion in marketing, against $57.942 billion in revenue .

The company is also very active on social media, with over 100 million followers across its brands’ social media accounts. Indeed, Unilever has effectively integrated its digital and social media marketing efforts, which helped them reach a wider audience and promote its products more effectively.

#3 — Build Trust Through Transparency

Over 94% of consumers say they prefer brands that offer transparency.

To get a hold of the majority of consumers, you want them to trust your brand—and being transparent about your products and manufacturing processes is a good way to do this. Therefore, FMCG brands need to be open and honest about what goes into their products and how they manufacture them.

Doing so allows companies to build trust with consumers, leading to brand loyalty and, eventually, higher sales. PepsiCo is a great example of a company that has built trust through transparency.

The company regularly publishes reports on its progress in terms of sustainability and environmental impact. It also provides detailed information on the ingredients used in its products and the manufacturing process. This allows consumers to make informed decisions about the products they buy and whether or not they want to support PepsiCo.

PepsiCo’s transparency efforts helped the company build a strong relationship with its consumers, which resulted in higher sales and brand loyalty. As a result, in 2021, PepsiCo’s annual revenue was $79.474 billion —a 12% increase from 2020.

#4 — Dominate the Local Market

Small businesses may not be able to go toe-to-toe against large multinational companies. But there’s one arena in which huge FMCG brands can’t compete with small businesses–and that’s being a local brand.

Local brands have the advantage of being familiar to consumers and tapping into the local market. So, focusing on dominating the local market is a way to succeed.

For example, Australians love their coffee and are very loyal to local coffee brands. Case in point, Starbucks failed in Australia because they couldn’t compete with domestic brands and didn’t understand the unique needs of the existing Australian coffee culture.

In order to dominate the local market, FMCG companies have to understand the local culture. Then, they can tailor their products and marketing efforts accordingly.

#5 — Work With A Team You Can Trust

In the FMCG industry, it’s especially vital to have a team of reliable professionals because of the fast-paced nature of the industry. Companies have to be able to adapt quickly to changes in the market and the needs of consumers. And having a team that you can trust will make it easier for you to make quick decisions and implement changes effectively.

As a growth-focused company, you need a strong team that can work together and support each other. As much as it’s costly to hire professionals to be part of your team, working with experts you can trust is vital to maintain the quality of your products and services.

The bottom line is if you want to succeed as a growth-focused FMCG company, you need to surround yourself with a team of reliable professionals who can help you achieve your goals.

#6 — Understand Your Customers

It’s true, 42% of growing companies die because they focus on solving interesting problems instead of serving an existing market need. They are too caught up in creating products they believe their customers want rather than what they actually need .

In short, you don’t want your business to be too product-centric—you need to bring your ideas back down to Earth and make them more customer-centric.

A great way to understand your customers is by constantly communicating with them. To get feedback from your customers, you can use the following:

Surveys
Social media discussions
Customer service channels

Make sure you listen to what they say so that you can adjust your products accordingly.

An excellent example would be Nestlé. They eschew offering a single mass marketing mix to all their customers, in favor of separate marketing plans for each of their target markets. This tailored targeting has helped propel Nestlé into the ranks of the world’s leading FMCG companies, with a revenue of $95.70 billion in 2021.

#7 — Understand Your Competitors

As the old saying goes, “Keep your friends close and your enemies closer.” In the FMCG industry, it’s vital that you’re up-to-date with what your competitors are doing and be one step ahead of them.

Some ways you can stay ahead of your competitors are by:

Offering similar products at lower prices
Creating unique products that competitors don’t sell
Improving customer service

You can also use your competitor’s weaknesses to your advantage. For example, if they don’t have an online presence, that’s an opportunity for you to focus on digital marketing and tap into that market.

A great example is how Fonterra, a New Zealand-based FMCG company, outcompeted its rivals by focusing on digital marketing. Fonterra was one of the first FMCG companies to launch an e-commerce platform in China and focus on selling their products online.

By understanding the growing demand among Chinese consumers for premium milk from Europe, they were able to reach a wider audience and grow their business. In 2021, Fonterra’s revenue was 20.6 billion New Zealand dollars.

Grow Your Business With The Right Strategies

Running a business in a very competitive industry like FMCG is no easy feat. But, if you want your FMCG company to succeed, there are certain lessons you can learn from the giants in the industry.

Adopting the strategies of successful companies and learning from their failures will help you create a solid foundation for your business. From there, you can start to build your FMCG empire and achieve long-term success.

It’s no secret that the ability to innovate and adapt to changes is pivotal for FMCG companies to remain competitive in the years to come. And there’s no reason why your company can’t be an industry leaderーbut only with the right people leading your business.

At ELR Executive, we’ve spent the last two decades cultivating connections with the best professionals in the FMCG industry to help you succeed in this fast-changing world. So, if you’re ready to move your way up in the industry, we can help.

Reach out today to see how we can help you find the leadership you need to succeed.

An Introduction to creating a high-performing culture

debbie@elr.net.au (Debbie Morrison) — Tue, 23 Aug 2022 18:52:45 GMT

Culture is often critical to unlocking an organisation's greatest potential, but senior leaders often have difficulty identifying and leveraging the functional aspects of their organisation's culture in order to enhance their brand, improve business results and fulfil their organisation's purpose. In this article, we explore some of the foundations for establishing a high-performance culture.

What is culture?

Culture is a set of shared beliefs, values and behaviours that guide people's decisions and actions.

The culture of an organisation is a reflection of its values and is defined by the beliefs, behaviours and attitudes that are shared by its employees.

Culture is too often an undervalued asset in companies. It can make or break any organisation. Employees that feel valued and respected, will perform better. Those that don’t, will leave.

It’s no secret that good culture helps attract top talent, retain it and develop leaders across all levels of the organisation but to create a high-performing culture, it’s important to understand what drives people to act in certain ways at work — what motivates them?

A high-performing culture is one that is not just well-intentioned but also a pleasure to work in.

It starts with an environment where people are valued and respected as individuals and where they feel safe to bring their whole selves to work.

A high-performing culture also has clear expectations about what is required from everyone, including managers and leaders. This helps employees feel secure in the knowledge that they are working towards the same goals as their colleagues, which increases their sense of belonging to the team.

The role of culture in creating high-performing organisations.

Culture is the single most important factor in determining whether an organisation is high-performing or not. High performers have a strong team culture that supports their business strategy and drives success.

The best way to create these conditions is by creating a set of principles for your company culture. These principles should be based on your company's values, focus areas and vision for the future, as well as being realistic about what you can achieve within a certain time frame.

Culture is something that is developed over time through a combination of people, processes and systems that are all aligned with the organisation's vision, values and goals.

It's important to remember that culture isn't something you can simply buy off the shelf. It has to be built from the ground up by all members of the team working together towards a common goal.

Culture is made up of three main components: people, processes and systems. These all interact together to form a coherent whole which ultimately determines how people behave and act within an organisation and how effective they are at achieving their objectives as part of a team or department.

Discover what is unique about your organisation's culture.

When you think about it, the purpose of a culture is to help people do their jobs. How do we make people more productive? How do we improve quality? How do we create an environment where people are happy, engaged and healthy?

Culture is not something that can be designed in a vacuum. It has to be based on the unique set of circumstances, challenges and opportunities facing your organisation.

Every organisation has its own unique culture because no two workplaces are exactly the same. Every workplace has its own set of challenges and opportunities. So creating a high-performing culture requires understanding what makes your organisation different from others.

Here are three questions you need to ask yourself if you want to create a high-performing culture:

What purpose do you serve?

What makes you different from other organisations that do similar things?

What is unique about my organisation's culture?

Helping leaders discover and communicate their unique value proposition.

There are two main types of culture: functional and social. Social culture is the way people interact with each other. Functional culture is what people do.

Organisations require both types of culture to be successful, but they have different goals and outcomes. Social culture is about relationships and interactions; functional culture is about tasks and outcomes.

Leaders can leverage the functional aspects of their organisation's culture to create a high-performing organisation. The key is understanding where your organisation's functional strengths lie, then leveraging them to improve performance.

The following questions can help you identify the functional aspects of your organisation's culture:

What kinds of behaviour do we value?

What are we proud of?

What kind of behaviour gets rewarded?

What kinds of behaviours are rewarded?

For example, if it's innovation then there will likely be an emphasis on creativity and risk-taking, whereas if it's compliance then there might be more emphasis on rules and procedures.

Where do people spend their time?

Where do people spend their money?

Where does the leadership spend its time?

Is it focused on things that align with the values identified above or not?

High-performing cultures are created by people and therefore can be developed over time.

Creating a high-performing organisation is a multi-faceted, ongoing process. It requires the engagement of leadership, HR departments and an organisation's employees. Culture is created from the top down and is shaped through daily actions and behaviours.

We have identified some of the best results-oriented practices to help you design a culture that drives performance. We based our findings on multiple research reports and industry leaders, who are experienced in designing high-performing teams in different sectors.

To create your own successful team, you must understand the difference between high performance and high potential. A high-potential employee may not always be a good performer.

To get ahead start, download our leader's guide to creating a high-performing culture in 2022 by clicking the link below:

https://www.elrexecutive.com.au/build-a-culture-of-high-performance-in-2022

Why digital upskilling is the best talent strategy for food & beverage businesses

debbie@elr.net.au (Debbie Morrison) — Thu, 26 May 2022 15:00:00 GMT

Despite its challenges, the pandemic was a catalyst for e-commerce growth in the food & beverage industry, with the market expected to stabilise and reach $34.6 billion at a CAGR of 23.4% through 2023.

Technology is at the forefront of new forms of e-commerce, automated pick-and-pack operations, supply chain management, forecasting production needs, and more.

Of course, this convergence of people and technology requires new kinds of skills.

Central to all of this is data. Becoming data-led is critical for food & beverage companies in today's digital economy. However, according to Accenture, many are unsure how to do it:

74% of CPG executives say they are struggling to scale data and analytics.

Most organisations have taken the first step – investing in digital technologies. But this is only one side of the equation. Leveraging technology and perhaps more importantly, data require digital skills.

To be able to meet the immediate and future digital skills gaps, businesses must not only upskill current talent but also become more creative in how they recruit, train and retain employees.

Having a workforce with digital skills is essential, but with digital talent in alarmingly short supply, many organisations are ill-equipped to cope with the pace of digital change.

According to research by Amazon Web Services, 81% of Australian workers said they need more digital skills training to be able to cope with changes to their job during the pandemic.

Yet, only 30% of organisations have the necessary training programs in place.

The competitive edge in retaining and attracting the best talent is the proactive investment in digital skills training and upskilling.

Establishing employee career plans and digital skills development programs for current and future roles presents organisations with the best opportunity to increase industry knowledge and domain expertise within their niche.

Not only that, the investment in employee development can protect startup and scaleup organisations from losing talented employees to larger organisations, which might offer better pay but may not necessarily be nimble enough to offer the same level of career development and opportunities.

5 Ways To Make Your Startup More Sustainable & Attract The Best Talent

debbie@elr.net.au (Debbie Morrison) — Thu, 12 May 2022 15:00:06 GMT

Today, more and more businesses are choosing more environmentally sustainable practices, and jobseekers are noticing according to a new global survey from IBM Institute for Business Value (IBV).

The numbers speak for themselves:

71% of employees and employment seekers say that environmentally sustainable companies are more attractive employers.
more than two-thirds of the full potential workforce respondents are more likely to apply for and accept jobs with environmentally and socially responsible organisations
Almost half of those surveyed would accept a lower salary to work for those organisations.

Given that one in four employees surveyed in February 2021 plans to find a new role this year, companies could face a risk of losing top talent to more sustainability-conscious competitors.

Here are 5 ways to retain your staff and attract the best people:

Are your raw materials sourced sustainably?

Sustainability starts at the source. The first step toward making your business more environmentally friendly is to work with suppliers who integrate strong ethical, social, and environmental performances in the production of their materials.

Make sure your materials are manufactured by ethical, fair trade suppliers that pay their employees fair and liveable wages.

Are your raw materials made with recyclable, renewable, and/or biodegradable materials?

Source materials that have a minimal impact on the environment, for example, responsible water usage in manufacturing. Other factors might include:

Cardboard and paper
Corn starch
Bagasse paper (sugarcane fibre pulp)
Mycelium (mushrooms)
Degradable bubble wrap

Where possible, make every effort to source your goods and services from local suppliers. This supports the local economy and cuts down on transportation costs, reducing your carbon footprint.

Use Eco-friendly packaging

Packaging is one of the biggest contributors to plastic waste in Australia. At any given time there are just under one million tonnes in our marketplace. Only about 32% of this is ever gets recovered and less than 5% is made of recycled plastic.

Use biodegradable packaging – Look for alternatives to single-use containers in favour of materials that break down quickly and effectively, like corn starch, mycelium, wood pulp, and seaweed.

Stick to one type of material – Avoid using packaging that contains different types of polymers. This can render it unrecyclable.

Packaging is an important part of your brand experience. By ensuring it's made from sustainable or ta least recyclable materials, you’ll leave an even better impression.

Go paperless

In today's digital economy, there’s no reason not to be 90% paperless. Yet, the average employee uses around 50kg of paper a year.

This is an astonishing amount, contributing to the 4.1 million hectares of forest – an area the size of Tasmania – being destroyed every year to make paper (Clean Up Australia).

Going paperless, not only drastically cuts down on paper waste but can increase your physical office space enormously.

Replacing storage cabinets for desks and seating can help you maximise your office space.

The best talent tends to be savvy tech users. In today’s digital environment, being paperless lets prospective talent know you embrace technology and tools that support the success of your employees.

Being 100% paperless is a noble goal but not possible for everyone, so if you must use paper, supplying your office with sustainably sourced recycled paper can save trees.

Just make sure you recycle.

A Sustainable Supply Chain

Good sustainability practices in the workplace aren’t just good news for the planet or even your companies’ finances.

It’s a prime driver in attracting the best talent.

More than ever, job seekers are increasingly drawn to organisations that walk the walk when it comes to sustainability and the environment.

For FMCG Businesses, this means looking at your supply chain.

Considering suppliers with green credentials, who are actively working to minimise their impact on the environment is a great way to practice climate protection and responsibility daily.

Working with suppliers who boast The Blue Angel stamp of approval signifies their efforts to protect the wider environment including health, water supply and other resources.

Not only that, it lets job seekers know you don’t just talk the talk.

Remote Working Is Key

Commuting to work every day leaves a substantial environmental footprint.

Adopting a hybrid-working model is a desirable proposition when looking to attract the best talent - many job seekers expect some flexibility.

Giving your employees the option to WFH when possible cuts down on pollution and fossil fuel usage helping to reduce your company’s overall carbon footprint.

When employees are in the office, encourage green initiatives like cycling to work or zero-waste days.

Set sustainability goals and celebrate your successes with the team to help build an environmentally aware culture.

Talent Acquisition: 5 ways to use a strategic sourcing approach

debbie@elr.net.au (Debbie Morrison) — Thu, 05 May 2022 04:37:25 GMT

Rapid change and global supply chain issues have changed the FMCG landscape. Inflation, uncertainty and a shortage of talent have made the retention and acquisition of talent more challenging than ever before.

Applying a Strategic Sourcing methodology to Talent acquisition can help FMCG startups uncover and capitalise on talent acquisition opportunities.

Opportunity Assessment: Market Intelligence & use of competitor insights

Industry-wide talent shortages have changed the talent landscape since the pandemic, other markets are vying for the workforce you traditionally attract.

Understanding who is competing for the talent you want to attract and how their hiring strategies have evolved provides you with a realistic view of what it will require to engage and attract key talent.

More than ever, FMCG businesses will compete with other industries for product development, buyers and salespeople.

Category Analysis: Segmenting by skills

Organisations are becoming increasingly digitally reliant. Most businesses are becoming more digitally reliant. Segmenting key roles by skillset rather than job function allows organisations to gain a deeper understanding of which skills are critical to future growth.

This helps identify skills gaps early so that organisations can better upskill existing employees enabling them to grow with your company.

Sourcing Strategy: Clearly define your purpose and talent strategy

Talent acquisition more than ever requires a structured and holistic approach tied to purpose and company ethos.

Research from Glassdoor shows the majority (89%) of job seekers believe it’s important for employers to have a clear mission and purpose.

Not only that, they want to see evidence of it in action and reflected in the company culture.

Go To Market: Build talent pipelines

Proactively talent pooling for future roles based on skills rather than job titles enables organisations to establish talent pipelines focused on key skills required for future jobs.

In a talent short market, this allows for broader talent pooling from other industries rather than relying on functional experience. In some instances, this may enable organisations to hire more competitively.

Implementation: Boost internal Employment branding & prioritise employee well-being

Culture is the top priority of job seekers according to a survey from FlexJobs in the US, which revealed 56% of respondents cited work-life balance as their top priority when considering a new job, with a higher salary being second.

It’s crucial you examine how you attract, hire and treat every segment of talent in your organisation, including full-time employees, hourly workers and contractors.

Prioritising your efforts on uniting and communicating your mission, purpose and values for the benefit of your employees will help establish a cohesive, inclusive culture that embodies them.

Hybrid Working: The Big Considerations for SMB’s

debbie@elr.net.au (Debbie Morrison) — Sun, 03 Apr 2022 10:54:49 GMT

For the food & beverage and manufacturing industries, the COVID-19 pandemic created widespread challenges —everything from a surge in demand for food and beverage products, the manufacture and supply of packaging, raw materials and ingredients to staffing, distribution and logistics.

Rampant illness resulted in a reduction in workforces for many consumer goods organisations compounded the issues, forcing them to temporarily rely on untrained, unskilled workers or hire temporary help. Of course, this impacts efficiency, quality and potentially, food safety through mistakes in manufacturing or a potential lack of proper process controls, leading to higher risks, especially for food processing or manufacturing.

While close contact in food manufacturing environments is inevitable, social distancing is especially difficult on production lines where workers are typically within inches of each other. Measures like slowed production lines and socially distanced workers, whilst a feasible solution is difficult to maintain when high consumer demand pressures production facilities to operate at full capacity.

Manufacturing challenges aside, dispersed or remote working teams add another layer of difficulty to properly maintaining compliance with regulatory and best practice safety measures. Naturally, this throws up a range of safety, compliance and legal concerns for HR teams and business owners.

It’s been widely publicised and accepted that ‘hybrid’ work is predicted to continue, if not become the new norm. New COVID variants remain an ongoing risk, as such home working may well remain a critical safety measure for FMCG businesses. Moreover, employees increasingly value and expect some degree of working from home or flexible working at the least.

Given the continued pressures on businesses, there are a number of important factors start-ups and scale-up consumer goods companies must heed when making decisions around long-term hybrid-working, especially if they don’t have in-house HR or legal teams. Start-Up & Scale-Up FMCG Leaders need to be across a range of legal and HR regulatory and compliance requirements to successfully manage hybrid working over the long term.

The complexities of Industrial instrument restrictions on flexible work

Food & beverage manufacturers need to navigate the many industrial instruments that may restrict when and where work can be performed, when breaks must be taken and what amounts have to be paid to employees for work at different times. This adds a layer of complexity for hybrid working policies, which can make the retention of staff and casual workers challenging for executives and business leaders. Furthermore, attracting new employees can be difficult if restrictions that impact awards such as the Food, Beverage and Tobacco Manufacturing Award are not clearly communicated.

Cross-border hybrid work: The risks to compliance and insurance

For Australian FMCG businesses, it’s crucial to work closely with supply chain, distribution and 3PL partners in addition to managing employees working interstate or across jurisdictions since border restrictions create a number of challenges. Cross-border work, especially supply and distribution of goods or raw materials can impact state-based compliance requirements, including, for example, any changes regarding the jurisdictional coverage under discrimination and work health and safety laws and confirming the correct payroll tax and workers compensation arrangements are in place.

According to a study conducted by Aberdeen Group, 45% of supply chain executives say that they are experiencing increased pressure for regulatory compliance and internal compliance to contracts. To avoid the risk of bad reputation, ethical or compliance issues with suppliers, organisations need to carefully assess their suppliers both new and existing since supply chain risks have a direct impact on the firm’s profitability according to 69% of supply chain executives. In addition, the ability to meet customer demand (54%) and supply disruptions (50%).

Avoid Hybrid-Working Prejudice

The flexibility afforded by hybrid working can be considered one way in which employers can meet some employee expectations when it comes to diversity and inclusion. However, Start-Up & Scale-Up consumer goods organisations that employ a mix of office and site-based staff need to navigate hybrid working with care to ensure the pros don’t become cons.

Having learned to live with COVID-19, the sense of a return to normality in recent months could see a swift move by consumer goods companies to mandate a return to the office. Physically present employees will feel like a boon for employers, however, employee attitudes have changed and for many office workers, that will not be welcome news.

Navigating the tensions resulting from the paradox of low paid, casual staff who have had to work on-premise versus office workers who’ve enjoyed the flexibility of working from home needs careful handling by executives.

The COVID-19 pandemic put these casual workers in the front line, those in manufacturing, food and beverage production and retail were classified as essential. In contrast to office workers who could work from home, in effect protecting themselves from COVID-19 risk, many front-line workers had no choice but to work on site. HR leaders have been challenged to balance the safety and wellbeing of these workers while keeping them motivated and ensuring business continuity.

Employer responses such as paying bonuses have been band-aid reactions at best. Whilst bonuses may help to motivate workers in the short-term, broader, more considered approaches from HR are required to avoid longer-term problems. For example, base pay has generally not improved for these workers according to a study by Corkery & Mahashwari, 2020 ). Furthermore, access to sick pay and better health insurance or support for health & wellbeing hasn’t improved, despite employees facing increasing workloads and greater exposure to COVID-19 as consumer demand continued to rise. Needless to say, the mismanagement of this can be costly. Employers should give consideration to how they can help to support employees return to the office rather than implementing blanket policies on a full-time return to the office.

Managing Health & Safety Remotely

The benefits of ‘hybrid’ work don’t come without risk. Employers often have much lower visibility and practical control of remote working environments, in addition, the excess work hours, stress, anxiety, isolation or loneliness all need to be considered.

It’s the responsibility of business leaders to proactively take the necessary steps to support employees working remotely, through the regular communication of health and wellbeing messages addressing risks to physical safety and mental health.

Inclusivity and Wellbeing for remote staff

Whilst there are tangible benefits to hybrid-working, there is also the potential for unintended cultural consequences for teams who rarely interact in person. With employees and job seekers alike expecting greater efforts from employers to not only build diverse and inclusive company cultures but to empower and support the health and wellbeing of staff.
Ensuring employees feel connected and engaged has never been so important. Business leaders must proactively work to implement initiatives that bring employees together in ways that are meaningful and enjoyable for them. Setting aside the time and resources for public recognition, regular communication (especially for remote staff) and team building or social activities can help employees to feel included and valued.

Whilst technology and collaboration tools can certainly be useful to help enable greater communication, the onus is on leaders to ensure the initiatives and practices are established in the first place, ensuring these tools are used effectively. The key to success here is flexibility. Giving employees a role in determining what initiatives are implemented and how they are managed is critical. Organisations should be cognisant of the desires and expectations existing employees and future generations have of workplace culture. Both are increasingly interested and perceptive of what organisations are doing to safeguard health and well being and promote diversity and inclusion in the workplace, especially in light of what has been termed the ‘Great Resignation’ and the current war on talent.

How ELR Can Help

At ELR Executive, we recognise that FMCG Start-ups and Scale-ups may not have the in-house HR and Legal expertise to safely navigate the complicated legal and compliance regulations to properly manage and safeguard staff and themselves in a hybrid working environment over the longterm. We work closely with our partners to help them identify talent who are skilled in handling the complexities of human capital management for the consumer goods industry.

If you’re interested in understanding how we can help develop a talent pool of future leaders, you can arrange a confidential discussion with one of our experts today by clicking this link ' chat '.

Hiring for Diversity & Inclusion

debbie@elr.net.au (Debbie Morrison) — Fri, 18 Mar 2022 01:00:04 GMT

For many consumer goods companies, the impact of the pandemic forced them into simply surviving - priorities shifted to navigating supply chain issues, managing remote working and depleted workforces, panic-buying and safeguarding employees and customers. Understandably, long term goals issues such as diversity and inclusion dropped down the list of priorities, at least for the short term.

A report by McKinsey, analysed more than 1,000 large companies across 15 countries prior to the pandemic and found a divide in approach. Only a third of the companies had achieved “real gains in top-team diversity” in the past five years. The majority made little or no progress – some had even gone backwards.

Interestingly though, research by IGD in October involving interviews with senior HR staff across more than 30 major retailers, food service providers and medium to large-sized branded manufacturers found more than 80% claimed inclusion and diversity was still part of their senior leadership conversations. A quarter even said they had used the past year to start creating a formal strategy.

The events of the last few years have made clear that Diversity, Equity and Inclusion is no longer just a fluffy HR initiative, but a necessity. Employees and potential candidates aren’t just asking for it, they are leaving when an organisation’s culture doesn’t meet their expectations. Employees understand that no one has to be unhappy at work anymore.

Consumers and employees are looking for long-term impact, sustained efforts and meaningful contributions. The most successful leaders are brokering meaningful strategic partnerships and working to attract talent that supports their journey toward inclusion.

Furthermore, customers are looking for clues that companies are serious and committed to racial equity, or if these actions are simply empty PR stunts.

Adobe’s Diversity in Advertising survey revealed 62% of Australian consumers are more likely to purchase products and services from brands with diverse advertisements. While 56 % of consumers surveyed said lack of diversity would impact their perception of a brand.

Whilst there is enough evidence that Diversity and Inclusion is not only a worthwhile societal imperative but also makes good practical business, knowing what to strive for is only half the battle. Few organisations are yet to implement practical strategies.

Much of this might be due to the fact that Diversity and Inclusion are about much more than gender, ethnicity, or sexual orientation. The ideal approach to Diversity and Inclusion aims to shape the constitution of an organisation; employees, representatives – to more accurately reflect the customer base and broader society.

So how do organisations create a successful Diversity & Inclusion strategy?

Expand your talent pool

It stands to reason when organisations limit the talent pool from which they hire, not only do they stand a much lower chance of hiring the best people but they also limit their ability to cultivate a diverse and inclusive culture. Diversity and inclusion start with the position description and should form an intrinsic part of the advertising, communication (internal and external) and interview process.

Embrace new perspectives

The most successful companies are the ones that remain innovative in the face of rapid change. A diverse workforce – one where different perspectives, new ways of thinking about problems or challenges are celebrated and encouraged can provide organisations with a competitive edge.

The key to success here is flexibility. Diversity on its own is not enough for employees to express themselves. Employees must be empowered and encouraged to express themselves. By striving to be open and objective to the new perspectives and thinking that comes with having a diverse workforce, organisations can help foster a culture of inclusivity.

Ensure customers and employees can identify with you

Today’s consumer wants to buy from companies they can identify with. The products they buy and the companies from which they purchase form an integral part of how they express their identity and plays a significant role in brand loyalty. As such, it’s important that organisations reflect the values of their customers through their attitudes and actions on cultural, social and environmental issues.

Diversity & Inclusion needs to be a priority of the c-suite

Whilst both a diverse workforce and the freedom of employees to express their ideas on defining company strategy, and empowering them to take action that drives organisations towards their goals is crucial, Diversity and inclusion must be a continuous priority for executives and board rooms for the benefits to be realised.

How ELR Can Help

At ELR Executive, we understand that Diversity and Inclusion is an essential aspect of any organisation that must be considered in every decision. most especially in the search for leadership. We work closely with our partners to help them create a culturally diverse and inclusive environment, opening the floor to a wider variety of voices and backgrounds by embedding diversity into the hiring process.

Executive Succession Series: Failing to plan is planning to fail - Part 2

debbie@elr.net.au (Debbie Morrison) — Fri, 04 Mar 2022 02:45:03 GMT

In the first part of this Succession Planning series, we explored the pitfalls associated with a lack of succession planning. In part two, we look at what executives and boards can do to implement a succession plan, nurture internal talent and discover future leaders.

How Organisations Can Discover Future Leaders

In 2022, demand for executives who exhibit agility, accountability and understanding of how to develop diverse, inclusive workplaces, implement sustainable climate-change focused practices and employee-centric cultures is increasing. Although traditional skills such as delivering strong commercial performance remain crucial, better soft skills and innovative thinking are critical areas of focus for boards and executive teams looking to identify potential executive successors. The following suggestions can help business leaders get started with succession planning or refine existing ones.

Candidate Pipelines

Rapidly shifting industry trends, economic recovery and stabilising growth is creating movement at the executive level as organisations pivot having focused on recovery. The organisations that are prepared, with a structured succession plan will be best placed to navigate sudden or unexpected changes in leadership.

Good Preparation

The market for top talent is increasingly competitive. To stay ahead, companies need to establish leadership development programs that can help them identify and prepare a range of internal leadership candidates for potential executive roles.

Innovative thinking

Fresh thinking and a modern approach to executive succession planning that extends beyond traditional skills matching and encompasses DEI, sustainability and commercial considerations are paramount for driving innovation and growth. Organisations need to give consideration to a broad range of potential internal and external candidate pools, not only for permanent and interim executives to ensure they can cover a variety of scenarios but to explore a broad range of perspectives, thinking and skills. This helps boards establish a clear profile of the qualities and attributes that are necessary for future success.

Effective Onboarding & Transition Processes

Investment in robust, effective and supportive onboarding and transition processes are of paramount importance. With so much at stake, few companies can afford for executives to fail in their new roles, especially given the impact executives can have on business performance and success. Arguably, quality onboarding and transition support and processes are more important for executive appointments, especially since Only 27% believe their organisations provide the necessary resources to support their move into a C-level role according to McKinsey . Compounding the issue, McKinsey found 50% of leaders reported that it took them six months to become effective in their new roles.

Ensuring that executive transitions are controlled, thorough and collaborative is key. Providing new executive appointments with access to critical information, organisational methodologies and supportive board members can greatly reduce the time it takes for them to become effective in their new role, creating a win-win scenario.

Develop Future Leaders Early

Successful succession programs should be part of wider leadership development and talent management plans. Treating succession as a short-term need, rather than a long-standing, structured process denies organisations the opportunity to start developing future leaders early in their employment.

Two key steps to developing potential future leadership talent early are talent assessments & leadership development plans. Discovering the competencies, skills and gaps of your existing employees through talent assessments and benchmarking those against the critical skills needed for executive positions can help identify candidates who demonstrate the highest potential for future leadership roles.

Career development plans can then be created based on the skills required for success in the role, anticipating the future needs and goals of the organisation.

Continuously Refine Your Plan

Organisations that develop the best leaders create executive succession plans that include selection criteria based on the future needs of the business. These criteria are often based on performance forecasts, future direction and anticipated market conditions hence the need for continuous refinement and adjustment of not only the assessment criteria but the skills required of future executives.

Incorporating flexibility for adjustment in succession plans, career development plans and selection criteria help organisations remain current and future-focused.

How ELR Can Help

Decades of expertise and insights derived from the assessment of countless executive candidates enable us to craft flexible, forward-thinking succession plans that identify the most suitable talent for a myriad of executive positions in the FMCG sector.

We help organisations identify, assess and screen the talent best suited to future leadership positions based on your business’s unique requirements. Their skills and expertise are also benchmarked against the FMCG leadership talent pool, ensuring you have a structured succession plan and career development program to cultivate the best performers.

Executive Succession Series: Failing to plan is planning to fail - Part 1

debbie@elr.net.au (Debbie Morrison) — Tue, 08 Feb 2022 01:00:03 GMT

There has been much fanfare about the impending ‘great resignation’ expected this year. How much this impacts Australian organisations, especially the c-suite remains to be seen. It’s not unrealistic, however, to think many executives, burnt out from the unprecedented difficulties faced as a result of the pandemic may consider calling time on their reign this year, potentially leaving many organisations exposed at the top.

The impact of CEO performance and organisational success has long been observed and there is no denying there is a direct correlation. Since the 1980s, researchers have found that CEOs could influence changes to a company’s stock price. By the 2000s, a study by John Wiley & Sons, Ltd among others, found the effect of CEOs on profitability was as much as 15%. More recently, research has focused on firm value (using Tobin’s Q), estimating that CEOs are responsible for at least 25% of a company’s market value.

There’s no doubt succession planning should be a priority for any organisation. Yet, research has found that most organisations are unprepared and have little understanding of how to approach succession planning properly. It’s not surprising that organisations who fail to prepare and plan accordingly risk excessive turnover at the top and can destroy a significant amount of company value.

Perhaps the biggest cost is underperformance. Poorly suited external hires can result in the loss of intellectual capital but the dangers run deeper and have far broader implications. According to MicKinsey 46% of leaders underperform during their transition to a new role. Furthermore, 50% of leaders reported that it took them six months to become effective in their new roles. 20% of C-Suite Executives stated it took more than nine months to become effective according to a survey by Egon Zehnder .

Poor preparations and a lack of support for new executive appointments can have a negative impact on overall company performance but the impact is also felt among teams and employees. Direct reports perform 15% worse under a struggling leader and are significantly more likely to become disengaged, a study by McKinsey found. These harrowing statistics highlight the importance of succession planning. For business success in 2022, organisations must do better. The solution is simple; companies must start succession planning well before they think they need to.

Where are organisations getting succession planning wrong?

According to a CEO succession study by Stanford University, one of the reasons organisations fail at succession planning is because they don't devote sufficient time to it. The study found boards of directors spend on average 1.14 hours discussing it. This lack of preparation and forward planning puts companies on the back foot, often leaving them with little choice but to rely on those external hires or internal candidates available at the time. This band-aid approach is hardly conducive to business success especially considering the direct cost of replacing a failed executive is close to 10x his or her salary according to a study by Heidrick & Struggles .

As Australia is plunged back into uncertainty with record levels of infections of the Omicron variant, the importance of resilient leadership cannot be overstated. It’s unsurprising that 74% of Boards are making emergency plans in case of a sudden CEO departure according to the Governance Challenges 2019: CEO Succession report .

CEO succession planning is crucial to company stability, empowering employee trust and investment in the long-term but success requires a shift in thinking and approach. Succession planning needs to be an ongoing process rather than a contingency plan. Even then, it can often be as much art as science. Talent pools and internal candidates earmarked and groomed for succession can often be headhunted or resign unexpectedly, leaving gaping holes in the hopes of boards. Research by McKinsey in recent years highlights that nearly half of all leadership transitions fail .

Whilst this statistic may sound concerning, it is not always a reflection of a poor transition. Changes in strategic direction or aggressive innovation can lead to a reshuffle. Succession planning can be complex, delicate and subject to any number of variables. Even the most extensive succession planning processes, invested CHROs and skilled executive search firms could struggle to find a high-calibre replacement. As such, it’s important to give thought to the pitfalls that can arise when succession planning is not treated as an ongoing initiative.

Here are 8 of the potential dangers to avoid:

Lack of reliable succession-plan

Surprisingly, whilst 86% of leaders believe leadership succession planning is of the utmost importance, only 14% think their organisation does it well according to Deloitte . Many organisations still lack the tools and necessary processes to conduct worthwhile succession planning, according to a 2018 Deloitte s tudy. Alarmingly, only 35% of organisations have a formalised succession planning process according to ATD’s research report Succession Planning: Ensuring Continued Excellence with SMBs and scale-up businesses not yet considering succession planning as a necessity yet.

Short term, reactive thinking

For many organisations, succession planning is often only a priority when an executive is exiting or planning to exit the business. Effective succession planning is a continuous process, requiring ongoing focus and review. The development of internal candidates requires long-term planning and investment. The alternative is a band-aid solution or external hire, neither of which helps to retain commercial IP.

Poorly handled discussions

Succession planning, by its very nature, can be a destabilising process if poorly managed. Executive transitions are typically high-stakes, high-tension events. Naturally, leaders that are under pressure or even those performing well might be hesitant about having succession planning discussions for obvious reasons. However, succession planning is exactly that; planning. It’s about safeguarding the future of an organisation and an important part of board responsibility. This can only come from ongoing discussions, development and planning to ensure that whatever decisions boards make regarding future executive leadership comes as a surprise to nobody.

Insufficient information or access to internal candidates

Impartial screening and selection of potential candidates cannot be conducted without the proper structure and processes in place. Naturally, executives will be reluctant to concede their position. Heavy reliance on the opinion and thoughts of the incumbent executive when planning for succession invites bias into the process, which may lead to poor decision making and negative outcomes. Boards can ensure they receive the right information and access to the best possible potential successors by actively talent pooling the market or engaging a specialist executive search firm to conduct a thorough executive assessment and talent mapping process

Managing internal candidates

Every organisation wants a promising pool of talented internal candidates for c-suite roles. Good succession planning is as much about the retention of high-calibre talent as it is about executive assessment. Organisations need to focus on retaining potential candidates through well-considered financial incentives, career planning and professional development. Ambitious leaders seeking executive roles will find them elsewhere if structured career paths are not created and presented.

Transparent, competitive selection processes

Boards risk making poor executive appointments if they approach the selection process with a closed mind and biased outlook. Quality succession planning goes beyond skill matching and assessment for cultural fit. Clear and open dialogue around leadership potential, the quality of thinking and objective assessment enables organisations to make informed decisions.

Using the right resources

Whilst the use of executive search firms can be costly, organisations need to consider the costs associated with making a poor hire. Good executive appointments are the result of adequate investment in time and resources to what can be a lengthy, complicated process. Given the immense significance of executive selection on business performance, extensive review of internal and external candidates, independent advice and a wider search of domestic and international candidates are important steps in securing the right leadership.

Internal vs External Candidates

Given the opportunity, it stands to reason that most organisations would prefer to source prominent executive appointments through internal candidates rather than external hires. Whilst both have pros and cons, it is difficult to arrive at an informed decision without conducting a proper selection and assessment process. The merits of new perspectives or differing skills versus organisational IP cannot be properly ascertained without first engaging in the appropriate success planning discussions and processes.

How ELR Can Help

On the Radar

debbie@elr.net.au (Debbie Morrison) — Wed, 02 Feb 2022 03:20:28 GMT

On the Radar

For senior executives, building and maintaining strong relationships with executive recruiters/search consultants can be an important - and mutually beneficial - way of moving forward in your career and taking it where you want it to go. For job seekers in the earlier stages of their careers, engaging with recruiters is a transactional numbers game: getting as many resumes in the hands of as many recruiters as possible. For senior leaders, though, it pays to be more strategic. For those in Director, or C-suite roles, strong relationships with a smaller number of executive recruiters/search consultants are your best bet. But how do you go about doing this?

At the risk of stating the obvious, the first step is to make sure you can be found, and to optimise what a recruiter will find there. There are several platforms to help you do this, but let’s focus on LinkedIn, since it’s the most widely-used. Your career history on LinkedIn should mirror your executive resume, not only highlighting your progression through increasingly responsible roles, but also showcasing your achievements and accomplishments along the way. The right titles, keywords, and phrases that accurately describe your work will help the right people find and connect with you. Occasionally sharing high-value articles and insights from your industry keeps you visible, and more likely to be top-of-mind for those looking.

Happy with your online presence? Great. But there’s no need to wait for others to find you.

Seek out the right relationships

Once again, this isn’t a numbers game for you; prioritise quality over quantity. Seek out recruiters who’ve done extensive work in your industry or areas of specialty. Search engines can help, of course, but colleagues and business acquaintances are a good source of personal referrals. While specialisation is key, rapport is equally important. As you speak with and meet recruiters, focus on building a relationship with people who ‘get’ you: people who take the time to listen, to understand your experience, and what you’re hoping to accomplish in your career and your life. Being discriminatory at this stage will help you keep the number of key relationships to a number that is manageable, forming foundations for mutually beneficial relationships over time.

Foster your relationships

As you identify recruiters you want to keep in touch with, the way you build and maintain the working relationship is the same as any other in your professional life. In short, keep the lines of communication open at an appropriate frequency, and in a way that adds value.

Naturally, you’ll want to pass along any updates to your own career - a move to a new job or company, changes to your role, notable achievements or recognitions, and the like. But if you only get in touch with updates about your employment situation, you’re missing an opportunity to take the connection beyond a transactional level. For executive recruiters/search consultants, a strong network is the most valuable asset we bring to our work. That being the case, referrals and networking opportunities are one of the highest-value things you can offer: referrals to colleagues who might be a fit for a search the recruiter may be working on, or hiring executives with other companies who might be additional clients for the recruiter.

These kinds of warm introductions are an expression of trust, and are of significant value to any recruiter. Information is also greatly appreciated by those in our field: industry insights, your unique perspectives that can help us better understand your business also helps us to serve our clients - and our executive candidates - better.

It may go without saying, but when you’re working with a recruiter to explore a specific role, it’s especially important to protect the relationship. A good executive recruiter/search consultant understands that you’re very busy, juggling multiple priorities and responsibilities. We’re accustomed to working around those busy schedules, but reciprocating - being as flexible as you’re able to, and as responsive as possible throughout a recruitment process - will keep the relationship strong, whether or not the outcome is your placement in a new role.

Build for the long term

If a relationship is only active when one party needs something - for example, if one is actively on the market and seeking a change, or is recruiting for a specific role - it remains transactional in nature. Don’t let a relationship stagnate just because you’ve achieved a short term goal, such as being placed in a new role. Regardless of which recruiter has assisted you in the transition, it pays to keep those lines of communication open. Over the course of a career - a recruiter’s and an executive’s - relationships evolve and change.

One-time candidates become candidates again later, candidates become clients, and clients become candidates as well. Once you’ve formed relationships with several people in the business who understand you, and with whom you have a strong rapport, treating them as career-long relationships will pay dividends.

Relationships with several executive recruiters/search consultants can be a cornerstone in the career you’re building. As with any professional relationship, nurturing and fostering the relationship over time will take it far beyond a transactional level, and position you for greater success.

The Great Resignation of 2021

debbie@elr.net.au (Debbie Morrison) — Tue, 12 Oct 2021 03:06:50 GMT

The Great Resignation of 2021

In a phenomenon now dubbed the ‘Great Resignation’, employees are quitting their jobs in droves, many determined to change careers altogether. These anomalous numbers attracted attention when they began spiking in the autumn of 2021, particularly in the foodservice, hospitality, and retail industries so beleaguered through the pandemic. The trend has now spread to almost every other industry, throughout the world. Depending on the survey, something like half of all employed people are actively on the market.

There are several factors driving this. The first – and most nebulous – is a general working malaise. It’s not altogether surprising; as we all now know, a global pandemic isn’t easy or stress-free to live through. In addition to typical stress levels in any job, every employee has been working through a period of increased anxiety and unpredictability for eighteen months and counting, in many people causing symptoms similar to burnout.

Naturally, some people were already dissatisfied with their job or workplace, getting ready to move on prior to the onset of COVID. If they were fortunate enough to have continued secure employment, they hung onto it as they watched friends lose their jobs. This has led to an unusual level of pent up frustration as things begin (at least in some ways) to return to normal.

There are a great many employees who were asked by their employers to work from home through the pandemic, and discovered – no surprise here – that they enjoyed it. Now that their employers are requiring that they return to the office for their work, they’re questioning why, reluctant to give up the flexibility that they’ve enjoyed without a good reason for doing so.

It’s also not hard to imagine that income replacement programs offered by governments to support unemployed people have caused some of those people to question even the nature of employment itself, returning to ‘the grind’ only grudgingly and looking for something different.

With this multitude and range of reasons why people might be dissatisfied and considering walking out the door, how can you avoid your employees being part of this number? There are three strategies that are always valuable for keeping your finger on the pulse of employee engagement, but especially so right now.

Check In

If you want to understand where your employees’ heads are at, the first step is to ask. For larger organizations, this might mean conducting a broad-based employee engagement survey, or a series of brief ‘flash polls’ (protect employee anonymity if you want honesty, which may mean engaging a third party to conduct this kind of research).

Checking in, though, doesn’t necessarily mean surveying. Now is a great time to encourage managers at all levels of the organisation to touch base with members of their teams: sitting down for regular one-on-ones, communicating with intention, getting a sense for how engaged people are feeling in their work and what could be improved. Be ready to set aside ego, make it safe and acceptable to speak up, to really listen, and to respond to concerns (either with changes where it’s possible and appropriate, or with good explanations why some concerns can’t be alleviated).

Show Appreciation

There are many things a company can do to make employees happy: compensation increases, bonuses, more perks and benefits, promotions and professional development, and more. Time and time again, though, employees report that one of the most critical things their employer can do to make them want to stay is to show appreciation. To recognise their good work, and to let them know that they’re a valued member of the team. It costs nothing to say, “Thank you, really nice work”, either publicly – like an email to the whole team recognising one person’s specific contribution – or one-on-one (remember that some people cringe at public recognition just as much as others crave it).

It’s been more difficult to show appreciation to employees working out of the office; the natural conversation points at which that recognition would happen are harder to come by. Now, perhaps more than ever, is the right time to show your employees that you appreciate their work and commitment to the company through the challenging last year and a half.

Question the Status Quo

Many companies have asked their employees to be flexible throughout the pandemic. Creating, then working from home offices – some more makeshift than others – almost overnight, continuing to work while children of all ages are home from school or daycare, trying to remain alert and engaged through yet another video meeting (“I think you’re on mute, Michael ...”).

If you’ve asked your employees to work from home, and are now asking them to return to the office full-time, know that some of them are questioning why. Of course, this doesn’t mean that you must move away from onsite teams in favour of remote employees. It only means that it’s helpful to understand your own reasons for asking your people to come back, and how you can make it work better for everyone.

For many managers and companies, it’s the innovation and energy flowing from more collaboration. But collaboration doesn’t happen automatically just because everyone’s back in the same space. If this is your goal, what structures or processes will you put in place to foster the kind of in-person collaboration you’re looking for? For some companies, it’s more about the close working relationships and camaraderie that are knit from a tight social fabric. That’s great, but not every employee thrives in the same kind of social culture. What programs and activities will you initiate to allow everyone to experience – and contribute to – the social environment you want to create?

Be aware, as well, that many temporarily-remote employees have experienced a kind of work-life balance and flexibility that they’ve never had before. For these employees to be happy back in the office may mean proactively encouraging behaviours that preserve that balance (prompting people to take a head-clearing walk over a full lunch break, instead of eating at their desks, for example), and offering a greater degree of flexibility to deal with personal and family commitments.

Whatever status quo has meant for your organisation, be open to questioning why you’ve always done things the way you’ve done them. Whether they change or not, you’ll have a greater sense of purpose and intention about what you’re creating with, and for, your employees.

These three strategies can help strengthen your employee satisfaction and engagement at any time. Now more than ever, though, they might just be the keys to preventing your best people becoming part of the Great Resignation.

A Resume that Sells

debbie@elr.net.au (Debbie Morrison) — Wed, 22 Sep 2021 05:55:53 GMT

A Resume that Sells

There’s something that distinguishes a good resume from a bad one (and can turn a good resume into a great one). While it’s fairly simple in theory, it can be difficult in practice because it involves thinking about your resume in a fundamentally different way than you may be used to.

The concept is this: your resume is a sales document, not a biography.

I’ll lay out what this means for your resume momentarily. But first – for the non-salespeople reading – let me give you a crash course in sales theory. (If you are in sales, bear with me and keep reading, because the most difficult product to sell is yourself, and this will help you do that.)

In sales, one can sell using the features of a product or service, or its benefits. While most people in sales would agree that the more important of the two is benefits, it’s not an either/or question. Both are important. It’s just that the features are only important to the extent that they give the buyer the benefit they’re looking for.

By way of example, think about the last time you bought a car. If you did your research, you probably looked at the features: seating and cargo capacity, safety features, fuel economy, comfort and convenience accessories. But was that really what you were buying? I’d bet not. You were interested in interior room... because you were thinking about the times you’d have passengers and stuff along for the ride. You were interested in safety... because if an accident happens, you want to protect yourself and the people with you. You’re interested in the ‘bells and whistles’... because they make long drives more comfortable (and sure, because some of them are just fun to have).

The same holds true for any major purchase. You want to know the specs of the smartphone you’re buying, but only because they allow you to do the things you need and want to do with that device. You may look at the picture and sound quality of a big screen TV, but what you’re really thinking about is the quality of the movie-night experiences you’ll have with friends and family.

Far too many people write their resumes as they’d write a spec sheet for a car, a phone, or a TV. Your work experiences, the responsibilities you’ve held in various roles; those are your ‘features’. Not that they’re not important – they are. But only to the extent that they demonstrate the benefits you’ll bring to a prospective employer. A comprehensive list of tasks and duties may accurately reflect what you did in your previous jobs, but it doesn’t do much to sell you as a potential new hire.

When writing or updating your resume, think first like a salesperson. What is the ‘customer’ (in this case, a potential employer) really looking for? What value are they hoping to get from bringing on someone new? What benefit will they be looking for you to provide? In some cases, the answer to these questions are fairly easy. Hiring a new salesperson should generate more revenue. Hiring a new manager for a team should mean better results from the people on that team, and perhaps less staff turnover.

Every part of your resume can be viewed through that lens. When you describe a previous job, you don’t have a ‘biographical responsibility’ to mention every single thing you did in that role. Selling yourself means focusing in on the aspects of your work that brought the most value to your previous employer and are of most relevance to your next employer; providing more detail about those, and less about things that are less directly related.

This also means that at a certain point in your career, you can start leaving some things off entirely. If you’ve been in your field for about ten years or more, for example, you no longer need to include much detail about jobs you held previously that aren’t related to your career, or even to include those jobs at all. (Of course, this doesn’t mean you can’t or shouldn’t include jobs you held years ago, it just means you should only include the details about them that help to sell you as a candidate, and the value you bring to a company.)

Your academic background – even if it’s not related to your current career – should usually be included because attaining a degree or a certification shows intelligence, commitment, and a willingness to work hard. That said, any additional continuing education courses only need to be included if they’re directly tied to the value you would bring to a new employer.

This shift to a sales mindset is also why tracking and listing specific achievements on your resume is so important. Unlike a list of responsibilities, accomplishments – particularly those that are quantifiable, expressed in percentages, dollar figures and the like – underscore how you benefited your previous employers. Which, in turn, helps a prospective employer see how you’d benefit them.

In the end, you may end up with a resume that has less quantity, but that’s fine: quality is what counts. Getting rid of less relevant content that doesn’t sell the benefit you’d offer as a new hire is decluttering. The reader is left with the content that really shows what you can do for them.

Does your resume read more like a biography, or like a sales pitch? If you’re not sure how to approach this, we’d be happy to provide some pointers. Send us your resume today, and let us help make sure it sells you as well as your experience deserves.

Attracting the Best Part 2: The Candidate Experience

debbie@elr.net.au (Debbie Morrison) — Tue, 07 Sep 2021 03:39:36 GMT

Attracting the Best Part 2: The Candidate Experience

How do you attract the very best candidates for every position?

This is the second in a two-part series focused on the question of how to attract the very best candidates for every position. In the first, we looked at the employee experience, because attracting the best begins with retaining the best. Here, we’ll focus on the candidate experience.

The ‘candidate experience’ is the sum total of every point of contact between your organisation and a prospective employee. This is an important principle, because every single element of that start-to-finish lifecycle contributes to the candidate’s experience, and therefore their perception of your organisation. Handled well, this works in your favour. If it’s not, it can result in candidates dropping out of the process, or declining offers. The candidate experience is comprised of four primary elements: the initial impression through employment marketing, the application stage, interviews and communication between them, and the hiring and onboarding process.

Employment Marketing

Smart companies understand that a job posting and a job description are two different things. A job description is an internal HR document. A job posting is a marketing piece; it’s your opportunity to sell your company, and your opportunity, to the candidates you’re trying to recruit. Great candidates are attracted by postings that speak to them about what it’s like to work for your company, and about some of the more positive – even exciting – elements of the work they’ll get to do there. If there are clear paths for progression, even better; top employees want to see that they can learn, grow, and develop further in their career. Your company website is also a recruitment tool – the best candidates thoroughly research companies they’re considering, so every part of your website (not just the ‘Employment Opportunities’ page) should be viewed through that lens. Good recruiters seek to understand the unique value of working for your company, so we can sell the opportunity in a compelling way when we’re speaking with prospective candidates.

Application Process

Have you ever tried to apply to work for your own company? It can be an interesting experiment that helps you see firsthand how easy or difficult it is, and the kind of first impression it leaves with applicants. If you invite candidates to email resumes and cover letters, do they receive a confirmation letting them know their application was received, and perhaps even what to expect next? If you ask candidates to fill in a form with their experience, is the form clean and visually appealing, and does it work properly? When a submission is made, does the applicant get confirmation that it was successful? Some companies – particularly those that have recently begun using applicant tracking systems – ask candidates to do both: submit a resume and cover letter, and also to enter the same information in a form. Redundancies like this are frustrating to applicants, and can cost you the candidate you really want. Ideally, it should be just as easy for a person to apply to work for you, as it is for a new customer to work with you.

Interviews and Communication

Before starting a recruitment process for any position, it pays to think about who needs to be involved in the interview process, and when. High performing candidates often have to take time away from a current job to interview, and this can become difficult and frustrating when an interview process has too many separate steps. Group interviews, or having shortlisted candidates move through several back-to-back interviews in one day, can be helpful ways of streamlining the process for everyone. It’s also helpful to determine what you’re looking for at each stage of the interview process. This way, the questions each interviewer asks will be more strategic and intentional, making the interviews more focused and productive.

Throughout the process, one person – an employee, or a recruiter if you’re using a firm – should be the main point of contact with candidates, keeping lines of communication open. If someone is no longer being considered, delivering the news promptly (and compassionately) leaves as positive an impression as possible. If you want a candidate to move ahead, it’s even more important to stay closely in touch, being clear about timelines and next steps.

Hiring and Onboarding

The final step in a successful hiring process is, of course, the hire. Smart companies plan beyond day one, though. The experience that a brand new employee has in their first few weeks with your company sets the tone for their time with you, and in fact can cement their decision to stay or to keep their eyes open. Onboarding differs vastly from one company to the next; there’s no single formula for success, but a new hire should feel welcomed, and should have a clear sense of structure and organisation: that the role and the company were ready for them to start. Take advantage of the opportunity you and your new hire have to make a great mutual first impression that turns into a lasting relationship.

Paying attention to these four stages of the candidate experience pays dividends. You’ll attract and successfully hire more of your first-choice candidates, winning the race for the high-performing employees you need on your team

Attracting the Best, Part 1: The Employee Experience

debbie@elr.net.au (Debbie Morrison) — Thu, 19 Aug 2021 04:25:22 GMT

Attracting the Best, Part 1: The Employee Experience

Attracting and retaining top talent starts from the inside out. In this – the first of a two-part series about getting the best employees on board – we look first at five critical elements of your employee experience.

When recruitment is your business, as it is ours, there’s one question that’s central to every conversation we have with our clients: How can we attract the very best candidates for every position?

Our work gives us uniquely valuable insight. Speaking with people every day about changing jobs, we hear why some want to leave their current employer, or why others choose to stay. We also hear what they’re looking for in their next company and job; the things that will attract and keep them performing at their best.

This is the first in a two-part series, focusing first on the employee experience. It makes sense to approach this from the inside out: if a company can’t retain great employees, it won’t be able to recruit great employees either. This was always true, to a certain extent, but it’s even more so now. Between social media generally, and employer-rating sites (like Glassdoor) specifically, word gets around more quickly and widely than ever before. This is great for transparency, of course, but it puts more pressure on employers to make sure that the experience they offer their employees is a good one.

When considering this question, it’s tempting to jump to ‘culture’. While it’s true that corporate culture is part of the equation, it’s a bit of a red herring, for several reasons. First, because it’s subjective: what constitutes a ‘good’ or ‘bad’ culture varies from employee to employee. Secondly, because culture is something that management can influence but not entirely control or create. Culture develops organically within an organisation (or within various parts of an organisation) as a result of day-to-day practices and decisions. Below are the five most controllable elements that influence culture and can create a great employee experience that attracts and retains top performing employees.

Compensation

Compensation and benefits are fundamental to the employee experience. Let’s face it, this is the main reason most employees work in the first place. Not every company can match the highest salaries in the market, and the good news is that no company needs to. Money is usually not the primary factor an employee considers when choosing to take a new job. To successfully recruit great employees, companies just have to be competitive. Above the median range for comparable positions, and offering decent benefits. These benefits can have monetary value like health coverage or a yearly training allowance, but increasingly, non-monetary benefits like flex time and the ability to work from home are equally valuable to many employees (and accessible even to organisations with limited budgets).

Communication

One hallmark of companies that attract and retain the best employees is the quality of communication throughout the organisation. Top performing employees want to know that they can speak openly about opportunities and challenges they see around them, and they want to know that they’ll be heard. Top performers also generally seek out more information about their own performance. Annual performance reviews may still be a necessary formality, but great companies and the managers in them know that ongoing dialogue is the best way to keep their best employees fully engaged.

Trust and Respect

These attributes are flip sides of the same coin. The best employees choose employers who trust them to do their work, and who show respect for them. Micromanagement is the fastest way to undermine a sense of trust; instead, great companies foster an environment in which performance is measured by clear expectations and results, and employees are trusted – and held accountable – to deliver those results. Great companies also encourage respect for results through recognition; bonuses and other perks can be part of the picture, but more often it comes down to simple acknowledgement. Whether verbally or in writing, public or one-to-one, a sincere ‘excellent work, thank you’ carries immense value for employees.

Opportunity to Perform

Getting the right people on the ‘bus’ is only half of the job. The other half is making sure those people are in the right seats. Top performing employees seek out roles where they have the chance to do their best work every day, and to get even better over time. Great companies provide them with this opportunity because they don’t just staff up to fill seats. They think more deeply about the skills and strengths of their current and prospective employees, they take advantage of opportunities to allow them to stretch the boundaries of their role and responsibilities, and in doing so they provide the opportunity for their employees to learn, grow, and develop their knowledge and abilities further.

Connection to Mission

Great employees at all levels of an organisation aren’t generally satisfied with being a ‘cog in the machine’. They want to know how their work connects to the bigger picture. Great companies, and the managers within them, make this connection clear to their people. They’re always looking for opportunities to show how each person’s daily tasks contribute to the mission and purpose of the organisation, helping to move it forward and achieve its goals.

If you’re not already doing so, it pays to keep your fingers on the pulse of employee satisfaction through well-designed surveys (the Gallup Q12, for example), and also by monitoring what people are saying about your organization – on Glassdoor, if nowhere else. Looking to sources of information like this can provide helpful direction about ways in which you can take your employee experience from good … to great.

In the second part of this series on attracting the best and brightest, I’ll focus on the element that some companies overlook entirely (creating great opportunities for companies that put focus there): the candidate experience.

New Recruits

debbie@elr.net.au (Debbie Morrison) — Tue, 10 Aug 2021 06:17:58 GMT

New Recruits.

If you’ve never used an executive recruitment service, you may be wondering what value we can bring to your hiring process. We’re here with the answer…..three of them, in fact

When we begin working with many of our clients, they’ve already worked with other recruiters and have chosen to trust us with their business (which of course we love). From time to time, we have the opportunity to start working with a client who hasn’t worked with a recruiter before. If you’re in that position, and just beginning to consider using a firm to support your recruitment efforts, this is for you.

The value our services provide our clients can be captured in three S’s.

Specialisation

Recruiting isn’t just one of the things we do, it’s all we do. Choosing to work with a recruiter is like engaging a real estate agent to sell a property, or an accountant to handle your books. Just like those experts, we’re specialists in identifying and evaluating candidates. With time and experience, recruiting becomes a blend of art and science. We have that experience. It begins with the very first contact we make with a prospective candidate, building rapport and forming a relationship, and asking skilful and targeted questions that help us understand their abilities and attributes. It continues with the in-depth interview and evaluation process we undertake, gaining a deeper understanding of the candidate’s experience and track record of results. We also take the time to get to know and understand the kind of company that would bring out their best, so we can create the long-term high-performance fit our clients look for in the people they hire. And of course, we manage and coordinate the hiring process itself, covering all the details to ensure that when you’ve selected your chosen candidate, they’re ready to accept your offer. That’s what it means to work with the specialists.

Selection

When a company hiring for a position goes directly to the market for candidates, their selection is generally limited to the candidates they can contact within that recruitment timeframe: the candidates who see their posting and choose – at that very moment – to take the time to apply. Have you ever considered how many candidates – possibly ideal ones – you may be missing out on? High performers don’t always scan job postings, and when they do, they often won’t make a snap decision to apply. The recruitment of these individuals happens over time; it’s often several conversations before they decide to move ahead. We are always in the market, continually building and nurturing our relationships with those highly skilled candidates, keeping our finger on the pulse of the talent pool, all on our clients’ behalf. Because of this, we’re often able to present candidates that wouldn’t be available to our clients at all, if they weren’t working with us.

Savings

Time and money are two precious commodities for every business, and the recruitment process is time-consuming by definition. Reviewing all those resumes and cover letters, trying to find – as quickly and efficiently as possible – the needles you’re looking for in the haystack. Scheduling and making screening calls to rule unsuitable applicants out. Coordinating interviews; difficult enough when it’s only your calendar and theirs, but nearly impossible at times with several others involved. The list goes on. Let us take that off your plate so that you can focus on the multitude of other priorities that consume your day. Working with us, our client’s time is spent only on the highest-value parts of the recruitment process: reviewing only vetted applications, and meeting with a short list of fully qualified candidates to make your final selections. What is the monetary value of the time we could save you?

Our specialisation in Executive Recruitment Search and Selection gives our clients access to the best selection of candidates for their needs, saving them time and money and allowing them to do what they do best. If you’re new to the idea of working with recruiters, we’d love to speak with you and help make the decision an easier one. Contact Us Today

Hiring and the Human Touch

debbie@elr.net.au (Debbie Morrison) — Tue, 27 Jul 2021 00:28:52 GMT

Hiring and the Human Touch

Are software-driven candidate assessment tools a useful addition to the Executive recruiting process?

Candidate assessment tools have been used for many years by recruiting firms and hiring companies alike to – in theory – introduce some scientific validation to the otherwise subjective process of determining whether someone would be a good fit for the job and the company. Their promise is an enticing one, to be sure. What hiring manager wouldn’t want a crystal ball, of sorts, to take away the guesswork, and tell them whether a prospective hire will ‘gel’ with the rest of the team, whether they have a leadership style that will fit well into the organisation, and whether they’re likely to be a long-term high-performer?

So, are they worth it? My answer is: ‘maybe, it depends’. I’ll explain what I mean below.

As with any product or service, there are good assessment tools and bad, and some are better for some situations than others. I will say that the science behind these assessments has greatly evolved over the years, and the tools available now are far more robust than those available even a decade ago. If you do plan to incorporate them into your hiring process, there are a lot to choose from, and it makes sense to shop around and ensure that the product you select is the best for your specific circumstances.

The other question – and an equally important one, in my experience – is how a company puts these products to use.

No assessment tool can, or should, ever replace human decision making in the hiring process. No software algorithm can reliably predict an uncertain future. Aren’t people liable to make mistakes, though? Sure, of course we are. But so is technology. A software program is no more or less fallible than people using solid interview techniques, plus good judgement and reasoning skills. Putting those elements to work together, though, can be highly effective.

People are most likely to make errors resulting from subjectivity. Simply put, we tend to want to hire people that we like. If someone is friendly and engaging, and builds rapport quickly, it can lead us to exaggerate points in favour of their candidacy, and overlook things we shouldn’t. A good evaluation process mitigates this by using well-designed questioning techniques, applied consistently, to get as close as possible to comparing ‘apples to apples’ when shortlisting and selecting final candidates.

This is where assessment tools have their greatest value. When employed in the later stages of the hiring process, these programs can unearth useful, objective, and data-driven insights that may not have surfaced in the interviews. Once again, I stress that these insights shouldn’t be interpreted for the purpose of ruling out candidates. Instead, they should point towards additional probing questions that can be asked in final interviews: questions that are unique to each candidate, and whose answers can help hiring decision-makers make better – and still human – decisions.

(As a side note, I’ll acknowledge that in an increasingly litigious labour law environment, it can be helpful in some cases to have the objectivity that these assessments provide, in order to defend hiring decisions when necessary. I still maintain that the assessments should complement, rather than replace, the decision-making of the people involved.)

Finally, really intelligent organisations use these assessments long after the day an employee first starts working with them. The insights and information the best of these programs provide can help you align your new hire with the right team, the appropriate supports, and the kind of leadership that will result in the highest level of performance and job satisfaction possible.

Algorithms will never take the human touch out of human resources. Whether you already use a tool to assess candidates, or are thinking about starting, we’re happy to work with you to ensure that a well-structured hiring process complements – and makes the most of – the insights and information you receive.

Want to know more? Get in touch and let’s talk.

Best Behaviour

debbie@elr.net.au (Debbie Morrison) — Tue, 13 Jul 2021 05:45:33 GMT

Best Behaviour

“Using smart behavioural interview questions to gain candidate insights”

When you’re assessing candidates for a given position, a resume and cover letter will tell you some things about them, but an interview is the pudding where the proof is to be found. The questions you (or a recruiter, on your behalf) ask in the course of an interview take several forms. There are, of course, basic questions that arise in almost every interview. Some relating to the work history of a candidate – why they took and left various jobs; their goals and objectives, strengths and weaknesses, salary expectations. Behavioural interview questions complement those with deeper insight into the tendencies and preferences of your candidate.

Behavioural, or situational, interview questions ask a candidate to talk about a real-world example when they experienced a particular thing, or took a certain action. So why do we ask them? Simply put: past performance is the best indicator of future performance. What a person has done in the past, the way they’ve responded to various situations, is probably pretty similar to what they’ll do if they end up working for you.

If you plan to include questions like these in your interviews, first you’ll need to determine what questions will produce the most useful insights. To help, here are two questions to ask yourself:

What are the skills, attributes and characteristics that a person will need to be most successful in the position?

What are some situations that someone in this position will frequently have to deal with, or problems that they’ll often need to solve?

For the first question, let’s say you’ve determined that a successful employee needs to be highly detail-oriented, with well-developed analytical skills, and able to work well under pressure. It’s easy to write those words on a resume (and they appear on almost every one), but a great candidate should be able to provide evidence. So you might ask:

“Tell me about a time when you caught an error that others had missed.”

“Tell me about the most complex or difficult information you’ve ever had to analyse.”

“Give me an example of a time you had to juggle an unusually large number of projects and priorities.”

For the second question, imagine that the position involves negotiation of contracts, and some formal presentations. Let’s take a different approach with these examples. Questions that ask a candidate to talk about failure are particularly useful, because they not only give you information about what they’ve done in the past, they also provide signals about how well the person learns from their mistakes. So you might ask:

“Give me an example of a time you were unhappy with the results of a negotiation you were involved in.”

“Give me an example of a time when a presentation you were making wasn’t working and you switched tactics to attempt to turn it around.”

When answering these questions, candidates will often use what’s known as the ‘STAR’ format. ‘S’ stands for ‘Situation’ (what was happening that led to the events they’re about to describe?). ‘T’ stands for ‘Tactic’, or ‘Target’ (what was the plan, and what did they hope to achieve?). ‘A’ stands for ‘Action’ (what would you have seen them do, or known they had done, if you’d been there?). And ‘R’ stands for ‘Result’ (good or bad, what was the outcome?). If the situation was one that evolved and was dealt with relatively quickly or simply, with less planning and deliberation required, ‘CAR’ is fine: Context, Action, Result. Listen for all these elements, and don’t be afraid to ask follow-up or probing questions if you’re not hearing enough detail. Here are a few of my favourites:

“What other options did you consider?”

“How did you feel when that happened?”

“What do you wish you had done differently?”

“What did you learn from the situation that you’ve since used?”

Interviews are, by their very nature, ‘artificial’ environments where everyone is playing a role and putting their best foot forward. Behavioural questions offer a peek into the real-world thoughts and actions of a candidate, and can be a huge help in selecting the one that can offer the on-the-job performance you need. Choose wisely, and ask away.

Want to know more? Get in touch and let’s talk.

I'll know it when I see it

debbie@elr.net.au (Debbie Morrison) — Tue, 29 Jun 2021 06:05:27 GMT

I'll know it when I see it

Have you said this to yourself from time to time, maybe when you’ve been house-hunting, or car shopping, or looking for a new shade of paint for a room redecoration? That’s fair; sometimes you just need to sit in the driver’s seat, or see the colour on the wall before you really know.

But what about when you’ve been in the market to hire someone new?

People in hiring positions use the word ‘fit’ a lot. We tend to use it to describe how we think someone would be a good or bad addition to a team, or the company as a whole. It also usually refers to something other than the technical qualifications, or the tangible experience, that a candidate brings to the table. Something a bit more nebulous, difficult to put our finger on. In fact, in many cases, it leans towards intuition. Something that we’ll know, when we see it.

To be sure, intuition does play a role in hiring. We all base decisions in part on gut feel; sometimes we’re right, sometimes less so. To minimize instances of the latter, it pays to give thought – before going to market – what constitutes a good fit for the position in question, and what preferences and attributes a person might have if they are a good fit. If you can articulate these elements, you’ll be able to give clearer direction to people helping you hire (meaning more interviews with better candidates) and you’ll give your ‘gut’ more and better information to help you in your decisions.

Here are three of the most important considerations to guide you, each building on the last.

Structure

Some organisations operate with a very high level of process. Hierarchies are rigid, and multi-layered. Decisions are made in a strict and consistent manner, each one documented thoroughly. Employees have clear and detailed instructions, and are expected to follow them to the letter. Other companies run more loosely, with employees trusted to make the right decisions and do the right thing. Management structures are flatter, if they exist at all. There’s more experimentation, more decisions made on the fly. Neither of these is inherently better or worse; companies evolve their own way of being over time, based on what works best for them. Each of these offers a very different experience for employees, though, and demands different things from them. The better you understand where on this sphere you are, the better able you’ll be to hire people who work best at your level of structure and process.

Dependence

Closely related to structure is the level of dependence or independence employees have from management and supervision. In some positions, employees may go days or even weeks without a conversation of any kind with a supervisor; it’s expected that they know their job and that they’ll do it. In these positions, employee performance is measured more by results than by process. In other positions, an employee may have ongoing communication throughout every work day with their supervisor. That manager may closely monitor the work being done, and provide constant direction and feedback to the employee. This dynamic can be very different from one position to another within the same organization, so the right fit may change from one hire to the next. Hiring an employee into one kind of position who works best in the opposite could – and often does – lead to poor performance and an early departure.

Culture

Beyond the relationship between an employee and their direct supervisor is the culture of the organisation overall. While structure and process are contributors to this, a culture goes beyond those mechanics. Some workplaces are as quiet as a library; employees have their heads down at their work, phone conversations are hushed, and any meetings are held behind closed doors. The work itself is more individual in nature, and at the end of the day employees go home, not socializing – in groups, at least – outside work. Other workplaces have a culture that’s far more social. New sales or other accomplishments are celebrated loudly by ringing bells or blowing air horns. Work may be more collaborative, all hands on deck. Conversations about work, and life in general, happen at the water cooler and just about everywhere else. Employees routinely get together after work for casual drinks, or for more organized Events-with-a-capital-E on weekends. While it’s possible for a quieter, more introverted employee to do good work in an extraverted organization (and vice versa), employees will be happier – and stay longer – in an organisation that aligns with their own personality and preferences.

When you know how these attributes show up in your organisation, you can put that information to work for you in every hire. This knowledge allows you to design great questions to ask each candidate, and their answers will give you a better understanding of how well they’d fit in to the position you’re hiring for. More data, less intuition.

Reflecting on how these aspects manifest in your organisation will make things clearer for the recruiters you work with, provide better questions to ask in interviews, and ultimately help you – and your gut – make better decisions when it comes to making the hire.

Want to know more? Get in touch and let's talk.

Fear of Commitment

debbie@elr.net.au (Debbie Morrison) — Wed, 16 Jun 2021 07:33:26 GMT

Fear of Commitment

Recruitment firms have been around long enough that they’ve diverged, taking different approaches to their work in some major and some minor ways. And, since we all need to make a living, the way we charge our clients is no exception. In this respect, recruitment firms tend to come down on one side of the fence or the other: retainer or contingency. In today’s blog, I’d like to share with you the approach we take, and more importantly, why it’s for the benefit of our clients.

Some definitions first. Under a contingency fee agreement, a recruitment firm is paid only when a client company hires a candidate presented by that firm. A retainer agreement, on the other hand, means that installments of the fee are paid to the firm while the search is underway – typically, a portion of it up front to begin the search, and usually when a milestone is reached at some point in the middle.

From a client’s perspective, a contingency agreement can seem more appealing. There’s no commitment, no liability unless the recruiter actually comes through for you. And it may feel like you’re casting a wider net. Since you only have to pay if you hire someone, you can have several firms all working away at the same time. Competition would make them try harder, it would seem. And you can even keep sourcing on your own as well! If you happen to find a hirable candidate before the firms do, you don’t have to pay anyone.

Why, then, would you commit to using one firm, and agree to pay towards a hire you haven’t yet made?

There are some good reasons for this. And sure, we’re biased; most of our work is conducted on a retained basis. In part, this is because we are specialized professionals at the work we do. We know that we earn our fee through the hard and thorough work we do during the course of a search. We work this way not just because it’s better for us, though, but because it’s better for our clients and candidates as well.

First, let me address the question of exclusivity. While it may seem to be a good thing to have multiple recruitment firms competing to ‘win’ on the same search, the reverse is actually true. For any given search, the supply of real candidates – candidates that are truly qualified, a good fit for our client, and at a point in their career to consider the change – is finite. Let me draw this comparison. If you were selling your house, would it make sense to have a dozen agents’ signs on your lawn? Working with one listing agent – assuming they’re good at what they do – reaches the market just as well, and with a lot less confusion on the part of prospective buyers.

Now put yourself in the position of a candidate. The first time you’re contacted by a contingency recruiter, you might be interested in the opportunity. The second time you’re contacted – by a different recruiter – you’re probably a bit confused. By the time the eighth recruiter has called you about the same position, how do you think you’d feel? Mostly just frustrated, I’d bet. And on top of that, your estimation of the hiring company has become tarnished. They must be desperate and disorganized.

When we work with a company on a retained basis, it gives us the ability to fully map the marketplace, identifying and vetting all prospective candidates to ensure we leave no stone unturned. In short, our clients benefit from a more thorough search when working exclusively with us, than companies who work with multiple firms.

When we approach candidates on behalf of our client and tell them we’re working on a retained basis, it’s a different kind of conversation. The candidate understands that the relationship is a partnership, and the hire is one that the company is taking seriously.

Then there’s a question of pressure. When we first contact a prospective candidate who’s happily employed – someone who would make the move as a matter of choice, rather than necessity – the decision to consider a change is a significant one. When working on a contingency basis, recruiters have to move quickly. They apply pressure on the candidate to make a decision on the spot. In contrast, when working with our clients, we can take the time to nurture their interest. In fact, in many cases we’re able to present candidates who wouldn’t even have been interested if approached with a high-pressure pitch.

As candidates move through the interview process, we devote a lot of time to keeping the lines of communication open. When our clients select a finalist that they want to hire, they trust us to ensure that we’ve covered all the bases – checking and rechecking for interest, speaking openly with the candidate about potential counter-offers, and more – so that when an offer is made, their chosen candidate is ready to accept.

When a recruitment becomes a race to the finish line – a chaotic rush to throw as much as possible against the wall in the hope that something will stick – these things don’t always happen. Firms working on a contingency basis simply don’t have time to devote to a search when it’s possible – even likely – that they won’t generate a fee.

Do you really want to be caught up in that race? Recruitment – done right, and done well – takes commitment. Our clients commit to us because they know we commit fully to them.

Want to know more? Get in touch and let’s talk.

Are you using ‘huddles’ to unlock workplace efficiency?

debbie@elr.net.au (Debbie Morrison) — Fri, 19 Feb 2021 02:37:48 GMT

Are you using ‘huddles’ to unlock workplace efficiency?

When time is money, a more efficient workplace is a more profitable workplace. If you’re tired of your team wasting valuable hours each week in long, meandering meetings, we strongly recommend putting huddles to work in your business.

Every day, more and more forward-thinking employers and managers are embracing the concept of ‘huddling’. If you haven’t yet come across it yet, huddles might just transform the way your workplace communicates and performs too.

WHAT IS A HUDDLE?

A huddle is a super-focused workplace meeting that usually lasts between 5 and 15 minutes. Increasingly, business managers and team leaders are using daily huddles to replace traditional meetings and WIPs, treating them as highly efficient ways to stay aligned and share important news quickly, without causing major disruptions. Depending on how effectively you embrace them, huddles have the potential to save you and your staff literally hours every week in unnecessary emails, zoom calls and meetings. By providing a regular and informal opportunity for some quality face-time with your staff, huddles are also an excellent way for managers to get an impromptu gauge of team morale at any given time. Oh, and one final point. Huddles can be just as effective for senior management as they are for the wider team. So why not embrace them and lead by example?

THE 3 KEYS TO A SUCCESSFUL HUDDLE

The real beauty of huddles comes from their informality. There are no hard and fast rules, no 100% ‘right’ way to run them. That said, there are definitely a few tips that can help you get the most out of your huddles. At ELR Executive, we’ve broken these into three broad huddle techniques:

1. STAND UP

Sitting down for workplace meetings only encourages people to get comfortable and take their time. It’s also far easier for your attention to wander when you can gaze out the nearest window, doodle on your notepad or check your emails under the table. Like a basketball coach in a timeout, effective huddles typically involve team members standing shoulder to shoulder, often in reasonably close proximity. More eye contact. More focus. Less distractions.

2. SPEAK UP

Another key to a good workplace huddle is to encourage anyone who wants (or needs) to share something with the team to do so. But…don’t let any one person dominate the conversation. One morning move clock-wise around the group. The next time try anti-clockwise. Make sure every employee feels empowered to speak up, but also keep the conversation moving.

3. SHUT UP

This is a big one. Huddles should be short and sweet. Don’t waffle. Don’t linger. Go in with a clear purpose, and when you’re done, you’re done. Shut things down and let your team get on with everything else in their work day!

Like any new workplace initiative, you can probably expect a little pushback from some team members at first. But it’s well worth preserving. Give huddles a chance and, before long, you’ll wonder how you ever managed without them!

4 critical strategies for building better teamwork

debbie@elr.net.au (Debbie Morrison) — Mon, 08 Feb 2021 02:31:44 GMT

4 critical strategies for building better teamwork

Teamwork is one of the most powerful forces in any modern workplace. When it works, it’s a beautiful thing. Trouble is, while a united, company-wide approach to business is a proven success driver for senior managers and HR departments – delivering benefits everywhere from innovation and creativity, to efficiency and ROI – it can be tricky to facilitate for a whole range of reasons.

Team building in a modern workplace

The growing reliance on external contractors and specialists is one major complication, with each person bringing their own culture, processes, motivations and politics to the wider team dynamic. Modern managers have a delicate role to play here, providing a conduit between these often disparate parties to keep things on track. It’s quite a skill, akin to international diplomacy at times. Sometimes it works out, sometimes it doesn’t.

Another big factor is the impact of the increasingly casual workforce on the physical team and workplace. Whether in an office, a factory, a worksite or even a retail showroom, historically teams have been able to come together, face-to-face, relatively easily. Today it isn’t so simple. Many employees – sometimes even managers themselves – are no longer physically present on a regular basis. This has a fundamental impact on the way teams operate. For one thing, it demands far greater planning and organisation from managers. It also creates a heavy reliance on technology to facilitate collaboration and keep the team connected, wherever its members happen to be.

While every team dynamic is different and presents its own challenges, here a four key strategies to keep in mind.

1. Communication counts

Great teams invariably have great communication. Whether it’s through face-to-face meetings and/or Skype calls, regular WIPs, the use of real-time project management software – or a combination of them all – do everything you can to keep the communication lines open at all times. Encourage all employees to contribute as equals, speaking openly and sharing their ideas freely with the wider group on an ongoing basis. It’s also important to ensure external consultants have access to the information, data and systems they need – so they can do what you’re paying them to do!

2. Clarity is critical

Problems can quickly arise in team situations when the task, objectives or process is unclear. To nip this in the bud, clearly outline roles and responsibilities right up front, and set out defined goals – preferably in writing – both for individual employees and the team as a whole. With greater focus, there will be far less chance of misunderstandings or ‘shifting goalposts’.

4. Managing workplace conflict

It’s inevitable there will be communication breakdowns and differences of opinion in the workplace. While a certain amount of conflict can be very healthy for a team, be sure all discussions take place respectfully and that a clear conclusion is always reached. In the case of an impasse you may not be able to keep everyone happy, but you must at least ensure everyone’s view is heard.

5. Team composition

Chemistry can have a huge influence on the success of any workplace team. Think long and hard about how different individuals, and suppliers, are likely to work together, both from professional and personality perspectives, before engaging them in your project. While you may not be able to avoid all potential conflicts, at least you can be prepared for them. Another thing to consider is how and when to bring your team together. Sometimes it may be wise to use smaller groups (teams within the team) to help keep certain team members apart!

Ultimately, managing a workplace team is a delicate juggling act that will present many new challenges to navigate and overcome. While there’s no single solution, one thing is very clear. As business teams continue to change and evolve, so must the HR departments and managers who oversee them.

Why workplace mental health is directly linked to your bottom line.

debbie@elr.net.au (Debbie Morrison) — Mon, 01 Feb 2021 02:36:55 GMT

Why workplace mental health is directly linked to your bottom line.

Mental health challenges can be as devastating as they are intangible. Historically they’ve also been shrouded in stigma and misunderstanding. Thankfully, the past decade has seen a significant shift in attitudes towards the issue of mental health in all corners of Australian society, and workplaces are no exception.

Workplace mental health is a significant issue with far-reaching ramifications. Increasingly, leading employers understand that managing mental health extends far beyond their legal obligations under the Disability Discrimination Act 1992 (Cth). Experience across many industries shows that when they get it right, the benefits can be very real both for their employees and the bottom line.

What is the cost of mental health?

As early as 2015 a report published by Safe Work Australia found the average annual direct cost to workers’ compensation schemes associated with mental disorder claims was $481 million. That’s a pretty staggering 11% of total scheme payouts – and you can be almost certain the mental health costs to the Australian economy are even higher now in 2020. The report also highlighted some other alarming figures surrounding the prevalence and cost of workplace mental health:

Each year approximately 7,820 Australians receive workers’ compensation as a result of a work-related mental condition
6% of all workers’ compensation claims were for mental health disorders
14.8 weeks was the typical time off work
90% of claims were attributed to mental stress
39% of mental disorder claims were attributed to harassment, bullying or exposure to violence in the workplace.

Another key insight for business owners and senior managers was that certain groups of employees were at much higher risk. Workers in the middle to latter stages of their careers (women aged between 35-59 and men aged between 35-64) were found to be significantly more likely to be affected by work-related mental health conditions than their younger colleagues.

Good mental health. Good for business.

Far beyond your legal obligations to provide a safe working environment for your employees, of which there are many, there are also compelling business reasons to take positive action on mental health. According to Headsup.org.au – a joint initiative between the Mentally Healthy Workplace Alliance and beyondblue – untreated mental health conditions cost Australian employers $10.9 billion every year through absenteeism, reduced productivity and compensation claims. The effects can also extend to poor morale, low staff engagement and high staff turnover rates.

But it isn’t all bad news, especially for progressive business leaders. Headsup.org.au also calculates that Australian businesses receive an average return of $2.30 for every $1 they invest in mental health initiatives. In other words, a 230% ROI!

How can you create a ‘mentally healthier’ workplace?

There are a vast number of strategies available to managers and employers ranging from peer support initiatives to education programs for both employees and managers to foster a greater sense of day-to-day mental awareness. An excellent place to start is the BeyondBlue Heads Up website which offers a range of resources available for support in the workplace, which you can visit here .

Divided opinions needn’t mean a fractured workplace

debbie@elr.net.au (Debbie Morrison) — Thu, 28 Jan 2021 02:37:24 GMT

Divided opinions needn’t mean a fractured workplace

Diversity. It’s typically one of the greatest strengths of a thriving business. Yet while differences in skills, backgrounds and opinions can often be harnessed to great effect, inevitably some issues are so fundamental they can instead create tension and conflict, turning a smooth-running workplace into anything but for Senior Executives and HR Managers.

There’s arguably no better example than the debate that surrounded the Same-Sex Marriage postal survey undertaken by the Australian Bureau of Statistics on behalf of the Australian Government in 2017. Whatever your personal stance, it begged the question: how do you best manage workplace conflicts that arise from such polarising issues?

All opinions should be heard.

In ELR Executive’s experience, a significant obstacle to an open and honest workplace occurs when staff members feel they’re being ignored – either overtly or through a perceived pressure to remain quiet – regardless of the issue in question. Being heard by senior managers and having the confidence to speak up are essential to feeling accepted and respected by both your colleagues and management. Others may disagree with your perspective, and they have every right to do so. But when you feel you aren’t being listened to, or at least granted fair opportunity to express your views in the workplace, trouble can quickly begin to brew. Previously productive team members can become disgruntled, disruptive and disillusioned. Worse still, they may just up and leave creating an even bigger HR problem.

Loud doesn’t always mean right.

Of course, there’s an important difference between being heard and ramming your opinion down the throats of everyone within earshot. The squeaky wheel may get the oil, but it doesn’t mean it’s any more deserving than the others. Senior managers and HR Departments should be alert to this. In particular, be wary of domineering staff members who are overtly vocal (or even hostile) on polarising issues or move quickly to shut down and ridicule those who share different views. It can border on workplace intimidation and potentially drive an irreparable wedge between team members that could undermine years of team building and far outlive the issue in contention itself.

Management by objective.

It’s human nature to choose sides. But effective HR management may require you to rise above personal opinions for the greater good of your team – especially when emotions are running high. Rather than becoming bogged down in ‘us versus them’ scenarios, always consider the broader business objectives and use them as your compass, just as you would normally.

Agreeing to disagree.

Consensus is great in theory. But when emotionally-charged issues are at play (even something as innocuous as the refereeing during the football finals could trigger problems in some workplaces!), it can be an idealistic and unattainable goal. No matter how respectful the debate may be, common ground may never be achieved between some team members. Typically, the only way to move on is to encourage the parties to respect each other’s right to hold their opinion. In other words, agreeing to disagree.

R-E-S-P-E-C-T.

Ultimately a harmonious workplace is a respectful one. It’s an environment where all team members feel they have the right to speak up and be heard, without fear or favour from their colleagues or managers. Achieve that and you’ll be well on your way to ensuring contentious issues such as the debate that surrounded the Same-Sex Marriage postal survey don’t weaken your team or undermine professional relationships. In fact, display strong and respectful leadership and they may even provide an opportunity to strengthen them.

The 5 secrets to a great workplace induction process

debbie@elr.net.au (Debbie Morrison) — Wed, 20 Jan 2021 21:08:43 GMT

The 5 secrets to a great workplace induction process

Death, taxes and staff turnover. Nowadays, whatever your industry, it’s a fact of business life that employees will come and other employees will go. The good news is it’s a situation that can be harnessed by senior managers and HR to inject new energy and ideas, inspiring your team to even greater heights. Yet it also has the potential to be disruptive. That’s why every business needs an effective employee induction process, both to minimise any negative impacts and bring new employees up to speed as quickly possible by creating a great first impression.

1. Start yesterday

You may think the induction process begins on that first morning when a new employee arrives on the job. The reality is quite different. Effective managers know the induction process for a new team member actually starts from the moment they accept your job offer, if not even before then. Why wait until day one? Often there can be a time lag between accepting and starting too, so think about what information and support you can provide to help prime your new team members beforehand, so they’re more comfortable on day one – and far more likely to hit the ground running in your workplace.

2. Clearly explain your workplace systems

From OH&S and finance to IT, admin and even marketing, every business has different systems and procedures. While they may seem obvious enough to you, these are all areas where new employees can typically become bogged down. Map out your key workplace processes using easy-to-understand language and diagrams. Make things clear. Make things simple.

3. Create a consistent culture

Buying into your culture is another key part of the employee induction process. Ideally any new team member will already, at least partially, have had some exposure to the company vision and culture they’re joining. All the same, it’s important to help make that initial workplace immersion experience a good one. Take time to document the company vision and values, explaining what they mean and why they were chosen. Share a little of your corporate history. Then, inspire your new team members to help you shape the next chapter of your story.

4. Mentoring matters.

Even the most comprehensive employee induction programs can’t cover every conceivable question. That’s where allocating a mentor to new team members can be hugely useful in the first few weeks. Ideally this should be someone other than their line manager, but still from the same team or department, so they can help to fill in any information gaps quickly and easily.

5. Put it in writing

Talking to someone is one thing. But there’s also considerable argument for producing a written induction guide for all new employees. Whether you choose to physically print it or simply supply it in digital form, it allows everyone in your workplace (new and existing) to refer back at any time should they have questions or be unsure of processes and/or expectations. If you’re not sure where to start, the Australian Government’s FairWork Ombudsman provides a detailed checklist you may find useful:

https://www.fairwork.gov.au/ArticleDocuments/715/Template-induction-checklist.docx.aspx

One final thing.

Have you ever considered an induction program for your existing staff? In certain situations this can be very useful, especially where you have team members who are changing roles or perhaps returning to work after a long absence, such as maternity leave, long service leave or a prolonged rehabilitation from injury or illness.

Contact ELR Executive for information on how we can assist your business.

Screen time. How to turbocharge your resume screening skills

debbie@elr.net.au (Debbie Morrison) — Mon, 18 Jan 2021 09:26:20 GMT

Screen time. How to turbocharge your resume screening skills

It can be one of the most laborious parts of the recruitment process. But while screening resumes is often necessary, fact is much of the information they contain is of limited value at best – especially when you consider some studies suggest 75-88% of job applicants aren’t even qualified in the first place!

The good news is, there are usually a few simple things you can do to greatly improve the quality of the resumes you DO receive. There are also little gems of information to be quickly found in most resumes, if you know where to look. As specialists who spend a lot of time reviewing applicant resumes, here are some of the key considerations we have at ELR Executive.

1. Quality beats quantity.

Tired of being swamped with resumes of dubious quality? You may be casting your net too wide, advertising on too many platforms, or simply setting the bar too low. Be specific. Be focussed. And seriously consider if there’s one niche site that’s better suited to your role, remembering it may not always be the same for other roles.

2. Presentation shows passion.

A mastery of grammar and spelling may not be essential for every role. But a poorly written or presented resume can be a big warning sign. Does the candidate really care about their application, or the role? Are their organisational skills up to scratch? Can they be trusted in front of clients? Of course, the flip side are resumes that are so focused on design and style that they lack substance. Watch out for both!

3. Quirky vs weird.

Individual personality quirks can be a breath of fresh air. But over-the-top resumes can also be a sign of trouble to come. One of our pet hates at ELR are peculiar email addresses. Why? They tend to reveal a lack of professionalism, empathy and respect.

4. Be careful what you ask for.

One of the most common flaws we see when screening resumes is missing information. Clearly a candidate who can’t follow instructions about what details to provide is someone to be wary of. But could you be clearer in your advertising about the mandatory skillsets and qualifications required?

5. Look for a clear path.

Career progression is one of great barometers when assessing a resume, especially for more senior roles. Can you see a clear and logical career path from previous roles? Or is there a bit too much zig-zagging?

6. Achievements, not responsibilities.

Every job comes with ‘responsibilities’. But this alone doesn’t mean a candidate actually met them. So, rather than focusing on responsibilities, it’s usually more enlightening to look at a candidate’s actual achievements – both in specific roles and also their career as a whole. What have they delivered on? Where have they excelled? What can they offer you as a prospective employer?

This is far from an exhaustive list. But considering each of these areas is a good starting point when screening applicants. Of course, there are some things a resume simply can’t tell you. So, no matter how strong it may seem, it should only ever be a stepping stone to a face-to-face interview.

Need specialist assistance in reviewing applicant resumes?

Contact ELR Executive today.

Workplace harassment: what every manager needs to know

debbie@elr.net.au (Debbie Morrison) — Fri, 15 Jan 2021 02:38:49 GMT

Workplace harassment: what every manager needs to know

In recent decades, Australian businesses have become increasingly sensitive to instances of workplace discrimination, harassment and bullying. Whereas not so long ago the bulk of workplace issues and conflicts were typically left to be ‘managed’ in-house, nowadays things are considerably different, forcing CEOs and HR departments to walk a delicate tightrope on an almost daily basis.

In part, the attitudinal changes have been driven by the digital enlightenment of employees, who are more empowered and alert to their individual rights than ever before. The media also plays a role, with coverage of workplace harassment becoming increasingly frequent – not surprising given literally thousands of cases find their way before either the courts or Fair Work Australia each year. (Just some of the higher profile workplace harassment cases include respected organisations such the Australian Federal Police, the NSW Ambulance Service, Australian Defence Force, retailer David Jones and former High Court judge Dyson Heydon, who had action taken against him earlier this year following claims of sexual harassment).

The rapidly escalating public presence and marketing campaigns of ‘no win no fee’ legal firms is further emboldening more Australian employees to stand up to errant bosses, whereas in the past they may have felt too scared to do so.

This is not necessarily a bad thing. While clearly some cases are spurious and opportunistic at best, many more are not. Employers are on notice. Do the wrong thing and be prepared to face the consequences, both legal and financial.

By far the most prudent course of action is to prevent workplace harassment long before it happens. However, this can be easier said than done. Engaging a workplace and HR specialist such as ELR Executive may be invaluable in helping you navigate – and mitigate – the many potential pitfalls and risks. Below are just some of the specific areas we can assist you with.

1) What is ‘workplace harassment’? You can’t plan for something unless you fully understand it. The modern definition of workplace harassment goes far beyond what many employers realise. Yes, it includes instances of racial or sexual discrimination and physical bullying against employees. But it also extends into more complex areas such as psychological bullying, cyber bullying, pregnancy discrimination, LGBT employees, ageism, disabilities and respecting the religious sensitivities of individual workers.

2) Understanding your Duty of Care . Many employers are surprised to learn they have a common law duty of care to their employees that encompasses a wide range of workplace harassment behaviours. Australian employers can be prosecuted for failing to meet this duty under state laws as well as anti-bullying legislation included in the Fair Work Act 2009 and the Fair Work Regulations 2009.

3) All reasonable steps. In the event of a workplace harassment claim being brought against your business or management team, the onus is likely to fall upon you to prove ‘all reasonable steps’ had been taken to prevent that employee from being subject to the harassing behaviour in question. Time and again one of the most critical factors in doing this includes having a thorough and universally-communicated anti-harassment policy that clearly defines unacceptable behaviours, outlines the sanctions for breaches, details the steps for making complaints and explains the resolution process. How well does your business currently do this?

4) New employees . While it’s essential to ensure your existing employees set the tone and culture when it comes to respectful and inclusive workplace behaviours, don’t forget new employees. How do you ensure your newest team members are well aware of what is and isn’t acceptable, both for their own benefit and that of their new colleagues? If this isn’t a formal part of your induction process, it really should be.

5) Don’t let one problem lead to another . By their very nature, harassment and bullying cases can be disruptive for a workplace. Whatever the ultimate outcome, it’s important to be aware subsequent rumours and gossip could make an already unfortunate situation even worse for your business and/or your employees. Keep a careful and respectful eye on things and move to manage any new workplace issues as quickly as possible.

ALL ABOARD! The secrets of getting onboarding right.

debbie@elr.net.au (Debbie Morrison) — Thu, 14 Jan 2021 09:24:01 GMT

ALL ABOARD! The secrets of getting onboarding right.

With timelines tight and resources stretched, downtime is something few businesses can afford. Given this, you’d think senior managers would be doing everything they can to ensure new hires are integrated into their team as quickly and smoothly as possible. Sadly, experience often suggests otherwise, with many companies guilty of leaving new staff members to largely fend for themselves.

A contract is the beginning, not the end.

It’s amazing how many businesses devote considerable energy and resources to finding great candidates, only to subsequently let their new team member flounder due to a poor onboarding experience. It’s a major issue that can affect everything from productivity and morale to your customer relationships. Sometimes the new hire can also end up leaving – sending you back to square one.

What is ‘onboarding’?

According to Strategic Human Resource Management (SHRM), the world’s largest HR professional society, onboarding is: “The process of integrating a new employee with a company and its culture, as well as getting a new hire the tools and information needed to become a productive member of the team.”

It starts from the very first moment you connect with a candidate, be that a phone call, a face-to-face interview or even just an email. The process then continues AT LEAST until the candidate is well settled into your team. Ideally, there should really be no specific end to onboarding of course, because learning and growth should never stop.

Why is onboarding so important?

An effective onboarding process ensures new team members are able to start performing the role you employed them to do as quickly and productively as possible. Beyond obvious things like ensuring their workspace is ready, introducing them to colleagues and clients and setting them up with all the necessary IT and security credentials, it’s also essential to clearly outline your company culture, policies and procedures, regulations and OH&S requirements. This way they’ll know exactly what to expect from the company, and what the company expects from them. Clarity is everything.

How do you do it?

If you’re looking to set up, or refine, an onboarding strategy, a great place to start is by speaking with your current employees. How did they find their onboarding experience? How did it help them? Where could it have been better? Did they even have one?! This allows you to reinforce the good things, improve the not-so-good things and, of course, fill the gaps. When it comes to implementing the actual onboarding process itself, typically there will be a lead ‘mentor’ allocated for every new hire. It’s their job to direct the process, calling in other relevant team members (e.g. IT and Finance) as and when required.

Make it formal

However you decide to structure your onboarding process, the key is to formalise it. Ideally it should be clearly documented in a step-to-step format that’s available to all managers and employees in a printed and/or digital form. Then insist it’s followed for all new hires.

It’s also a good idea to ensure new employees are not only taken through each step, but that you keep a formal record to confirm they have, preferably dated and signed by both the new team member and their mentor.

Perfectly imperfect

debbie@elr.net.au (Debbie Morrison) — Mon, 11 Jan 2021 09:24:38 GMT

Perfectly imperfect.

Why the ideal candidate mightn’t always seem ideal at first.

No-one aspires for mediocrity in business. But while it’s great to have high standards, it’s important to stop and ask yourself, how high is too high?

Time and again we see employers set the bar so unattainably high that even potentially great job candidates have little hope of clearing it. Baulked by a perception of unrealistic expectations, many walk away and look elsewhere. While others never even apply in the first place.

Despite what plenty of so-called HR experts may try to tell you, at ELR Executive we believe there’s no such thing as ‘the perfect candidate’. But that doesn’t mean there aren’t plenty of great ones. The sooner you make this subtle change in recruitment mindset, the better your chances of finding them will be!

Not perfect…yet.

Often the quest for the ‘perfect’ candidate sees employers overlook fantastic candidates who are already within their business. Maybe the person is a little less senior than you were thinking. Or perhaps they’re inexperienced in some facets of the role to be filled. Question is, with some training and mentoring, could they turn out to be the best candidate for the role? Often the answers is, yes. Of course, the added bonus of recruiting from within your team is it can significantly reduce recruitment costs.

Ask an expert.

If you are recruiting externally, do you have the right people to find you the best candidate? Many employers like to control the process by keeping things in house, especially for senior and/or strategically critical roles. But sometimes it’s far more cost-effective, and successful, to outsource the recruitment process to a specialised recruitment consultancy who can devote the time, energy and skills the role deserves.

Better job descriptions, better candidates.

This seems obvious, right? Sadly plenty of great candidates are lost due to incomplete, unclear or intimidating job descriptions that, frankly, scare them away. Getting the job description right is critical to finding the most suitable candidate. By all means be accurate, but also be realistic about the type of person you need, the culture of your company and the environment they’ll be working in. Also make sure you’re advertising on the right job site/s for the role.

Know what you’re looking for.

Hand-in-hand with an accurate job description is having a clear idea of the type of candidate you need (and want) for your role. This will come in handy both when screening resumes and also during interviews. While a candidate may not fit your ‘perfect’ profile 100%, can they be mentored or moulded? It’s also important to separate mandatory skills, qualifications and qualities from those which are ‘nice to have.’

Beware the ‘perfect’ interviewee.

There’s plenty of research to suggest candidates are rarely their true selves in job interviews. Whether it’s due to nerves, experience, coaching or just their personality, some people interview a whole lot better than others, so be careful. You’re looking for a great candidate, not just a great interviewee.

Hesitation can be an indication.

Even if you think you’ve found the ‘perfect’ candidate, things can unravel quickly, especially at the negotiation stage. If they’re slow to sign and return their contract, or have gone unusually quiet, it’s essential to ask yourself why? By all means concerns should be discussed and addressed, but unexplained hesitations up front are often an indicator for commitment issues later. While frustrating to lose a good candidate at such a late stage, it’s always better to find out before they start.

Keeping a great candidate.

Perhaps the only thing more frustrating than losing a great candidate before they sign, is losing them at the end of the trial period because of a poor onboarding experience. It’s so important to provide good structures to ensure they feel welcome and supported in their new role – or you may be back to square one again!

How secure is your data. What every business manager needs to know.

debbie@elr.net.au (Debbie Morrison) — Mon, 04 Jan 2021 09:24:53 GMT

How secure is your data? What every business manager needs to know.

The rise of the digital economy during the past two decades has been accompanied by a parallel rise in the threat of cybercrime and data security breaches.

Recent examples can be seen everywhere from multinational organisations like Facebook and shipping conglomerate Maesrk, to small-to-medium sized domestic businesses and even Government departments such as the Bureau of Meteorology and Family Planning NSW.

Clearly, some breaches are more malicious and damaging than others. Regardless, what each of the above cases shows is that if data security – including sensitive personal information about your employees – isn’t already high on your managerial agenda, it really should be.

In an attempt to compel employers to do more to prevent data breaches, and provide greater protections to employees and customers if they happen, the Australian Government introduced the Notifiable Data Breaches (NDB) scheme on 22 February 2018. Part of the Privacy Act 1988, the scheme applies to any business with annual turnover of $3 million+ and gives businesses a maximum of 30 days to disclose full details when a data breach is discovered.

It’s worth noting the European Union recently enacted its own General Data Protection Regulation (GDPR) which provides employers with just a 72-hour window to report breaches, so don’t be surprised if the Australian Government follows suit before too long.

Your data. Your responsibility.

Data security affects everything from your inhouse email, accounting and intranet systems, to your company mobile phones, social media and even everyday web usage via your company’s ISP.

Whatever the size or nature of your business, it’s essential to understand your obligations should you suffer a data breach in any of these areas, especially as severe penalties and fines can apply if you don’t.

You can read more about the Notifiable Data Breaches scheme at the Office of the Australian Information Commissioner .

Avoiding employee burnout at Christmas

debbie@elr.net.au (Debbie Morrison) — Sun, 13 Dec 2020 21:08:42 GMT

Avoiding employee burnout at Christmas

The festive season is a joyous time of year. But coming at the end of 12 long months (particularly the 12 months we’ve all just had thanks to the pandemic), senior managers and HR departments need to remain especially vigilant. For it can also be a challenging time for hard-working employees who may have one eye on taking a well-earned rest – and another eye, anxiously, on everything that still needs to be completed before they do it.

Even if your company itself isn’t closing down over the Christmas and New Year period, many of your clients and suppliers may well be, which can cause a knock-on effect of super-tight deadlines, disjointed staff availability and any number of other seasonal business complications. It’s a potentially stressful mix that can quickly result in employee burnout if you’re not careful.

What is employee ‘burnout’?

Employee burnout describes a situation when employees have exhausted their physical, mental or emotional reserves in the performing of their job role. It can be caused by many factors including stressful projects or clients, a lack of managerial support and resources (real or perceived), tight impending deadlines, or even just plain old exhaustion. It’s also commonly seen in the type of employees who tend to set unrealistically high expectations on themselves.

How do you beat employee burnout?

Every workplace and team is different. That said, here are a few important things we’d recommend you keep an eye on to help ensure this year’s festive cheer doesn’t lead to festive ‘tears’. (In truth most of these can be applied to any time of the year.)

1. Know the warning signs

Surveying the office and virtual offices and seeing a hard-working team can be hugely satisfying for a senior manager or business owner. But is end-of-year burnout or exhaustion lurking just beneath the surface? Warning signs include uncharacteristic quality lapses, increased irritability with colleagues (or, even worse, with clients), missed deadlines, changes in time management, a deterioration in grooming standards and possibly a rise in the number of sick days being taken. The other big thing to watch for is employees who’ve accumulated large amounts of annual leave over the course of the year/s, but never seem to use it.

2. Burning too many candles

Candles are great when you’re singing Christmas carols in the local park, or possibly this year watching a pre-recorded and steamed local Christmas carols event! But if your employees are burning the candle at both ends, with constantly early starts and late finishes, it’s a good idea to find simple ways to release the pressure valve a little. Maybe suggest they start a little later some days. Give them a fun ‘social’ project to help provide a distraction? Or even reward them with a surprise paid day off, or a professional development day, at short notice?

3. It’s okay to switch off

Even if you’ve managed to get everyone out of the office at a reasonable hour, what about the many employees who continue to work from home, or work remotely? Not all staff are good at switching off and may end up working well into the night to get pre-Christmas projects completed. The key here is to lead by example, both in what you say, but also what you do. Make it clear that it’s not simply okay to switch off from work – mentally, physically and digitally (stop checking emails at midnight and on weekends!) – it’s actively encouraged.

4. Protecting staff from themselves

Sometimes even the best employees need a gentle reminder it’s in their own interests to recharge their batteries a little, especially when the pressure is on. Determined not to stop until every project has been completed perfectly – an almost impossible task – it can reach a stage where they’re personally taking on so much responsibility it’s almost inevitable burnout will take hold. Remind them that, while their workplace commitment is admirable, running themselves into the ground is no good for their career or your business in the longer term.

5. Open doors

In today’s modern, highly mobile workforces, it can be difficult to gauge just how busy your team members actually are. For this reason, it’s a great idea to have an open-door policy where employees know they’re always welcome to raise potential workload issues about current or looming projects – well before they become fully-blown problems. Listen to their concerns. Explore the alternatives. Then work together to implement a workable solution. Or, at the very least, help them see that the light at the end the approaching tunnel isn’t a train!

Ultimately, frequent and honest workplace communication is the key to solving many of the issues that can lead to employee burnout, so be sure to keep talking and listening.

Contact ELR Executive for information on how we can assist your business.

Tired of jugging? Why smart managers are outsourcing their HR

debbie@elr.net.au (Debbie Morrison) — Tue, 01 Dec 2020 02:32:19 GMT

Tired of jugging? Why smart managers are outsourcing their HR

Are you a juggler? Perhaps you’re a plate-spinner? Spot fire putter-outer-er? Or maybe a furious water treader? Whichever metaphor you prefer, it’s a common management dilemma right across Australia. Seemingly infinite responsibilities, counter-balanced by a decidedly finite amount of time and money to address them. No wonder they’re feeling stressed!

As David Allen, a globally-respected productivity consultant and author of ‘Getting Things Done’, rightly explains of modern business managers: “You can do anything, but not everything.” The key, of course, is identifying which of those responsibility balls you really do need to juggle yourself, and which ones you might be better served throwing – aka, delegating – to someone else, be they in your business or an external partner.

Where the necessary skills (or capacity) don’t already exist within your business, outsourcing makes a lot of sense. This can especially be the case with mid-sized businesses who are often operating without dedicated departments for important functions such as Human Resources.

It’s natural to feel you’re reducing business costs and maintaining control by keeping HR tasks in house. But for big decisions, such as key hires or restructures, it’s almost always a false economy, especially when you take into account the impact of opportunity cost and the myriad of other things you’re already juggling – such as client and stakeholder relationships, new business, forecasting, project delivery and more. Engaging HR experts will almost always bring superior results in shorter time-frames and, ultimately, be far more cost effective for your business and less stressful for you.

Of course, not everyone offers HR the same level of support, so it’s important to be clear about what you do and don’t expect from the outset. Be aware that some HR ‘experts’ are very much project based, preferring to drop in for a specific task, then hand you an invoice and disappear again. That may well suit you. However time and again we’ve found the best outcomes typically come from forging genuine and ongoing partnerships based on a deep understanding of your business and its structures. This approach allows your HR partner to shape a longer-term view of your business and add considerably more value as a direct result. It also means should you ever find yourself juggling too many balls, you’ll have a safe pair of hands always ready to step in and catch them – long before they crash to the ground in an expensive mess.

If only we could all be like Alex Barron, the British performer who holds the current juggling world record – 13 beanbags juggled for 15 catches (see video). Now that’s a safe pair of hands…

Carrot or Stick: Which management style is right for your workplace

debbie@elr.net.au (Debbie Morrison) — Wed, 18 Nov 2020 02:36:12 GMT

Carrot or Stick: Which management style is right for your workplace

The western world has been drifting generally towards the left for some decades. In such an environment you might imagine the argument about carrot or stick management styles would be something of a no contest. Yet closer inspection across a range of businesses, workplaces and industries suggests otherwise. Whether you’re naturally inclined to manage by fear or by reward, many good HR judges believe too much of either can be a bad thing for business, with success often resting in how well you’re able to balance the two to suit the specific make-up of your workforce.

The Carrot

There’s no question positive reinforcement can be a powerful talent management tool; give your team something to really aspire towards and watch them go for it! Of course, while the theory makes considerable sense, it’s important to understand this ‘good cop’ approach doesn’t always work out, and it certainly comes with a unique set of pitfalls and limitations.

One of the biggest problems managers come up against, typically stems from situations where the reward mechanisms – be they related to money, promotion or other workplace or lifestyle incentives – are considered unclear, unfair or unattainable, thus undermining the very behaviours they were intended to inspire. Instead of being motivated, employees can quickly become the exact opposite – demotivated and disgruntled at a perception of hollow promises from management. What does this mean? Simply that for any form of reward-based employee incentive to be successful, the onus is on managers to ensure crystal clear clarity, genuine transparency and perceived fairness for all of those involved.

Ironically, some organisations find themselves suffering from the exact opposite problem. In situations where the carrots are felt to be easily attainable, there’s evidence it can a lead to complacency within the organisation or, worse, a sense of entitlement. Both situations can be counterproductive, so it’s important for your HR incentives to be generous enough – but not too generous. It’s a fine line.

The Stick

Virtually everyone has experienced a ‘bad cop’ or two during their careers, that person whose style is to manage through fear and the ever-present threat, be it spoken or implied, of repercussion. While certainly there’s little question fear and punishment can be powerful motivators, it’s a management style fraught with many dangers – especially in the modern era defined by high rates of employee mobility (not to mention legal action against employers). Hit someone with the metaphorical stick too many times, or without a genuine reason, and they’ll probably just leave you for a competitor. This isn't to suggest employees should be free of consequences for unacceptable behaviour or performance. Rather, it’s an approach that needs to be managed very carefully, or you may end up with an even bigger HR problem on your hands.

Generally speaking, the stick approach is best applied as a short-term team management tool to drive realistic stretch targets or changes in behaviour. It’s also worth remembering that if it’s being used as a punishment for undesirable or unacceptable workplace behaviours, the stick is almost always most effective when used at the time the behaviour has actually occurred. Act too late and the benefits may be negligible, if anything.

So, where does this leave us? Like most things in life, there’s a place for both the carrot and the stick in a modern workplace management strategy. In different situations both are proven to be effective in driving positive results and/or changes. Their application is an ongoing balancing act that some managers and HR departments are far more adept at than others. The good news is with a little focus and awareness of the issues at play, virtually all managers can improve the way they use them.

(If you’re interested in learning more about the psychology behind carrot and stick management styles, there’s a great feature about the work of Douglas McGregor, a social psychologist and professor at MIT in the USA. Read it here ).

A Professional Roadmap: the secret to reaching your career goals

debbie@elr.net.au (Debbie Morrison) — Wed, 04 Nov 2020 21:08:42 GMT

A Professional Roadmap: the secret to reaching your career goals

Every time you hop in the car you have a destination in mind, right? While it’s pretty logical that you need to know where you’re going in order to get there, many of us overlook the same approach when it comes to our careers and reaching our professional goals.

Just like driving, knowing your destination guides pretty much all of your decisions – from planning the best route, knowing how much time you’ll need and even making sure you have enough petrol (and snacks) to last the journey. Without some kind of roadmap – be it formal or informal – you may end up ‘lost on the roadside’ wondering where on earth you are and how on earth you got there!

Here are some of the key things we suggest every employee keeps in mind when formulating their own professional roadmap:

1. Define your career goals . Start by defining what that ‘success’ actually looks like for you. What are you trying to achieve and, perhaps more importantly, why? Business success? Career progression? More money? More time with your family and friends? Whatever it is and whatever your motivations, be as specific and measurable as possible. By all means have an end destination in mind, but also outline some of the key professional milestones along the way – say, every 12 months – and ideally include a time-frame as this will help to steer many of your future decisions.

2. Make your goals attainable. It’s essential your goals are obtainable, both in terms of what you want to achieve and also how long you give yourself to do it. By all means you should try to stretch yourself. But if your objectives are simply too hard to achieve, your motivation levels can quickly wane. Experience shows us time and again that unrealistic professional goals are a recipe for disappointment.

3. Make your goals visible. Large or small, professional goals can be hugely motivating, so don’t hide them away! Pin them to your desktop, your office wall, stick them on your fridge at home, set yourself weekly reminders on your smartphone. Keep them top of mind and you’ll stay a lot more focused.

4. Identify obstacles. Removing potential barriers, or finding detours around them, is another key strategy on your success journey. What’s held you back professionally in the past? External influences? Bad habits? Unhelpful attitudes? Skillset gaps? Don’t let history repeat itself. Put plans in place to prevent things that may have hindered your career progress in the past.

5. Share the load. You might think the best way to achieve your professional goals is on your own. It makes sense in theory. But, in reality, many people find sharing their goals is hugely helpful. Do you have a workplace mentor or respected colleague you can use as a sounding board from time to time? Even if there isn’t someone you can work with directly, at least tell a few close friends who can provide you with motivation and encouragement along the way. Making them aware of your career goals will also help to keep you more accountable – a good thing!

6. Be persistent. Regardless of how well you perform each of the above steps, there will inevitably still be setbacks and unexpected detours on your professional journey. The important thing is – don’t give up. Learn from your setbacks and mistakes, recalibrate and even change routes if you need to, but keep moving forward. Professional success is rarely easy or straight forward, but it’s certainly worth it.

Contact ELR Executive for information on how we can assist you in your career success.

Not-So-Super.

debbie@elr.net.au (Debbie Morrison) — Mon, 02 Nov 2020 02:32:37 GMT

Not-So-Super.

Why super non-compliance is a serious issue for Australian employers.

Compulsory employer superannuation contributions are nothing new. They were actually introduced by the Keating Government way back in 1992, yet many employers continue to fall short of their super obligations each year, often unknowingly. Could you be one of them?

The Federal Government has been concerned about the impact of super non-compliance for some time, with the ATO estimating the shortfall between what employers should be paying their employees in super and what is actually paid, currently runs well into the billions of dollars each year. It’s a position backed up by separate research conducted by Industry Super Australia.

The super spotlight intensifies

The size of Australia’s ‘super shortfall’ came into sharp focus following the release of an often-damning 2017 report into Superannuation Guarantee Non-compliance, prepared for the Minister for Revenue and Financial Services. Coupled with several high-profile cases of employees being underpaid in the media – including businesses owned by Masterchef host, George Calombaris, the (now defunct) food delivery operator Foodora and retail cosmetics chain Lush which admitted to $2 million of underpayments affecting more than 5,000 of its staff – there onus has never been stronger on employers to get it right.

Increased policing and penalties

The ATO has been quite vocal of its intent to step up policing of employers to ensure proper super compliance, while employees are also increasingly raising their concerns directly with the Fair Work Ombudsman, with more and more cases ending up in court. Penalties for non-compliance can be severe too, including heavy fines and even 12-month jail terms for directors found guilty of breaches. This means it’s essential to understand – and meet – your employer super obligations. As the saying goes, ignorance is no excuse.

Employer amnesty?

Whilst it’s yet to pass through the Senate, it’s worth noting moves are currently afoot in Canberra to provide a 12-month Superannuation Guarantee Amnesty. This would provide a one-off opportunity for Australian employers to correct any past super guarantee shortfalls without penalty. As an added incentive, catch-up payments made during the amnesty period will also be tax deductible. You can find out more on the ATO website.

How to correct an underpayment

Underpayments can happen for all manner of reasons. But regardless of why, if any of your employees haven’t received their correct super entitlements, it’s in your best interests to rectify the situation as soon as possible. To help you do this, the Fair Work Ombudsman provides a step-by-step guide on how to do it here.

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Some key things to remember

Compulsory employer contributions are currently 9.5% of employee earnings
Employers are legally required to pay superannuation to every employee over the age of 18 earning more than $450 gross a month
Superannuation is required to be paid within 28 days of the end of each quarter
It doesn’t matter if an employee works casual, part-time or full-time hours – they’re still entitled to super
Contractors may also be eligible for super, so be sure to check
Small businesses account for around 70% of reported superannuation guarantee non-compliance with cash flow problems often cited as the major reason.

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Well, well, well. How healthy is your workplace

debbie@elr.net.au (Debbie Morrison) — Wed, 14 Oct 2020 02:33:20 GMT

Well, Well, Well. How healthy is your workplace?

Mention the words ‘workplace health’ and most people immediately think of OH&S, or perhaps executive health checks and pre-winter flu shots. Yet true workplace health goes far beyond just the physical safety of you and your team members. In fact, the World Health Organisation defines ‘health’ as a ‘complete state of physical, social and mental wellbeing.’

As more and more business are now discovering, this holistic concept of ‘wellness’ – physical, mental and emotional – can have a major impact on the performance of your team and, yes, your bottom line. It’s also something an increasing number of employees and candidates are demanding from employers.

How big is it? Well, a 2015 report in the Australian Financial Review suggested corporate wellness was already an $8 billion per year industry. Back in 2010 a Harvard study found more than $3 in savings were delivered to employers for every $1 spent. A more recent report from the respected not-for-profit research institute, RAND, estimated the figure closer to $1.50 – still a decidedly impressive 50% ROI.

What exactly is wellness?

Wellness in the workplace isn’t always easy to see, or measure. That’s because it’s typically the result of many factors that combined to influence modern workplaces. Things such as your top-down corporate culture, workplace flexibility, end-of-trip facilities and environmental issues such as air and light quality can all have a significant impact. Get the mix right, and you can look forward to everything from happier employees and higher productivity levels to lower staff turnover rates and fewer sick days.

Research commissioned by healthcare giant, Medibank Private, found ‘healthy’ workers were almost three times more productive than unhealthy counterparts and nine times less likely to have sick days. When you balance this with another study that found stress-related presenteeism and absenteeism are estimated to cost the Australian economy $14.8 billion every year, the argument becomes even more compelling.

Workplace wellness ratings.

Chances are you’re aware of energy rating programs like NABERS, or quality assurance systems such as ISO. Right now several bodies such as the US-based International WELL Building Institute™ are actively implementing evidence-based rating systems, specifically to measure, certify and monitor the performance of workplace features that impact the health and wellbeing of workers.

Macquarie Bank secured Australia’s first-ever WELL registration earlier in 2016 for its new premises at 50 Martin Place in Sydney. With numerous other corporate addresses having since joined them, and many more currently seeking certification, these ratings are poised to become an increasingly valuable tool for business leaders and candidates alike. This makes it vital to ensure your workplace stacks up.

Wellness audits.

Wellness isn’t just an issue for the top end of town. If affects businesses of all sizes and industries. Given no two workplaces or workforces are the same, it’s important to regularly consider the specific factors that impact most upon your employees – and initiate improvements where necessary. One relatively simple process may include conducting an annual wellness audit whereby you engage a cross-section of your team to help you identify both issues to be rectified and opportunities to make things better.

To discuss this, or any other issues relating to improving the performance of your employees, be sure to contact a recruitment and workplace specialist such as ELR Executive.

This is not the job I applied for

debbie@elr.net.au (Debbie Morrison) — Mon, 12 Oct 2020 02:32:57 GMT

This is not the job I applied for

The new year is often the trigger to find a new job, or even a new career. While starting afresh can be an exciting time, it’s vital to be sure any new job you accept is actually what you think it is – and not just a case of ‘false advertising’.

Candidates hold the cards

With unemployment at historically low rates in Australia, 2019 is likely to still be a candidates’ market across most industries. This means employers will have to work hard to attract the best talent. Trouble is, in trying to sell the ‘dream’ it can be easy to distort the reality, be it innocently or intentionally. That’s why having a healthy dose of suspicion isn’t necessarily a bad thing when searching for a new role.

Early warning signs

If you’re lucky, you might start to realise early in the process, ‘this is not the job I actually applied for’. During the interview stage you may get the feeling it isn’t quite the right job for you, or perhaps it doesn’t sound as good – or even the same – as it did in the advertising. Question is, do you drop out immediately? Or are you jumping to conclusions too soon, or perhaps letting yourself be baulked by something new and not challenging yourself enough?

Ultimately, only you can make these decisions. But our advice would be listen to your gut – it’s usually right. If you decide to press on with the interview process, be sure to ask some pointed questions to help clarify any lingering doubts you may have. It’s always better to find out before you sign a contract!

Too good to be true?

The perfect job description doesn’t always translate into the perfect job. In fact, when absolutely everything about a role sounds fantastic, it’s almost certainly been embellished. A good job description shouldn’t hide the challenges of a position – every job has those! Giving a clear 360-degree understanding of what’s required is important as it will help you decide whether or not you really are the right for the role. Just as importantly, it can also help employers eliminate unsuitable candidates, saving them time and money.

Too bad to be true?

At the other end of the scale, does the job description sound ridiculously demanding? Sometimes otherwise good employers can go a little overboard by listing every possible skillset they can think of. Maybe they’re inexperienced? Maybe it’s just a poorly written ad? Then again, perhaps they really do have unrealistic expectations and are best avoided? It’s important to consider these possibilities before deciding whether to proceed or not.

Reality bites

What happens if you get the job, only to realise – once you’ve started – the reality is different to what was explained during the interview process? Do you pack your things and head straight for the door? Or do you give it a chance to work? The first thing to do is speak – directly, but still professionally – with your manager and/or the person who hired you. Explain your concerns and see what they say. Who knows? It might simply be a misunderstanding. If it’s a new position within the business, maybe they’re still figuring things out for themselves and your feedback can actually help them get it right.

Exit strategy

Of course, when it’s clear you’ve been deceived there’s little point sticking around. It may be inconvenient for everyone involved, but there’s no shame in giving your notice after just a few weeks if an employer hasn’t been up front with you. Our advice is to follow the correct process as outlined in your contract and to be as professional as you can. While frustrating having to start the whole job search process again, it’s far better than working in a role that makes you feel unhappy and betrayed every day.

Truth in advertising

Just finally, some words of advice for HR departments and hiring managers – keep it real! As tempting as it is to write job descriptions that sound better than they actually are with the aim of attracting more candidates, it can create far more problems than it solves. For example, when the majority of the candidates apply for a role under false pretences, a large proportion will probably withdraw during the interview process. While if a strong candidate accepts, only to soon realise they’ve been misled, they may quickly resign leaving you back at square one. Even if the role is proving difficult to fill, staying truthful about what is – and isn’t required – will ultimately save time and money in the long run.

Why executive decision makers don’t make decisions.

debbie@elr.net.au (Debbie Morrison) — Wed, 16 Sep 2020 03:35:46 GMT

Why executive decision makers don’t make decisions.

As specialist executive recruiters for almost 25 years, it’s one of the most common frustrations we still hear from employers. Why are so many executive decision makers reluctant to actually make decisions?

The logic is simple enough. After all, when you’re recruited into a senior decision-making position, it’s only natural you’ll be expected to make decisions. Trouble is, every day managers all over Australia – and the world – struggle to actually do it, putting things off for all manner of reasons and generally erring on the side of procrastination and compromise. Even at a micro level, managerial indecision like this can have a significant impact on the bottom line. But when you extrapolate it to an entire economy, well, the impact is potentially seismic.

One problem. Many causes.

A raft of factors can trigger a lack of confident decision making in a workplace. In some instances, it might be personality related, something which can have ramifications all the way back to your executive recruitment, talent identification and HR processes. While in other situations it can be connected to external forces such as the working environment or corporate culture managers find themselves operating within each day.

While clearly every situation is different, here are some of the more common factors to watch out for if you’re looking to encourage more effective decision-making in your business. It can be particularly important to keep these things in mind when you’re actively looking to recruit new talent through an executive search process.

Failing to prioritise or delegate correctly – no matter how good a decision-maker may be, they can’t decide everything every time. Whether it’s done intuitively, or they’ve learned strategies to help them over the years, the most effective managers are typically adept at prioritising what they really need to take care of themselves – and delegating what they don’t to others.

Too much information – when we get overloaded it’s easy for our decision making to become bogged down as we struggle to process everything. The reality is too many options and opinions can be just as dangerous as not having enough. While it’s easy to assume that if we go through every conceivable scenario, and leave no stone unturned, we’ll be certain to make the right decision, more often than not we simply become overwhelmed. It’s why one of the greatest managerial skills lies in being able to filter the information you really need from that which is superfluous.

Uncertainty – in managerial circles the phrase ‘paralysis by over-analysis’ often draws a chuckle. But make no mistake, it can be crippling commercial problem if left unaddressed. Regardless of the business size or industry, the underlying cause is almost always the same: a lack of confidence and/or clarity within the business. Maybe a manager is fearful of losing his or her job if they make the ‘wrong’ call? Perhaps they don’t feel truly empowered and, as a result, are constantly seeking to second-guess their boss? Or maybe they’re wheel spinning as don’t fully understand the company’s strategy and vision? They’re all paralysing scenarios for a decision maker, slowing down the process at best, grinding it to a complete halt at worst. Uncertainty is the enemy of effective and efficient decision making.

The emotion of change – generally speaking, people don’t like change. Yet by its very nature, change is what decision making is all about. Whether it’s implementing new structures, new IT systems, new hires, new suppliers or even a new marketing campaign, the decision-making process is frequently more emotional that it might appear on the surface – both for the person making the decisions and also those who will be affected by them. For some managers this can create a heavy emotional burden which, in turn, can lead to procrastination and/or compromises which may not be in the long-term interests of the business.

Managing workplace mistakes so they don’t become disasters.

debbie@elr.net.au (Debbie Morrison) — Tue, 18 Aug 2020 03:35:20 GMT

Managing workplace mistakes so they don’t become disasters.

Blunders. Errors. Epic fails. Balls-ups. Whatever you choose to call them, workplace mistakes happen for all manner of reasons. Perhaps it’s due to lack of attention? Employee stress or fatigue? Confusion over instructions? Poor team morale and motivation? In some cases, it could even be the result of malicious employee behaviour. While you can’t always stop workplace mistakes from happening, you can certainly determine how your business chooses to react and manage the aftermath.

When workplace mistakes happen, there’s no shortage of options at your disposal. Will you come down hard on the offender/s? Make a public example of them? Launch a comprehensive internal investigation? Jump up and down before simply letting things revert back to the way they were? Or perhaps employ the psychological torment of the silent treatment? Whatever direction your business ultimately takes, remember the path you choose can have far reaching HR consequences, both good and bad.

Take the example of ‘Peter’. He’s been a senior employee in a multi-national advertising agency for more than 15 years. Given his considerable experience, he’s often entrusted with overseeing the dispatch of artwork to ensure its accuracy. But one afternoon recently he missed something. The job was for a major banking client, and the error meant his agency was forced to reprint more than 50,000 customer portfolios – delivering a five-figure hit to his agency’s bottom line. Peter was mortified, as was his immediate manager. Both feared admonishment from their CEO, or worse. But it never came. You see, instead of being reprimanded, the error was used as a brilliant case study; a crystal clear example to the entire agency of why attention to detail was imperative.

The CEO’s message was essentially, if an experienced employee like Peter could do it, anyone could. By turning a negative into a positive, it sent a powerful message. It showed leadership. It showed empathy. It showed optimism and forward-thinking. Time will tell, of course, but in our view this course of action sets a powerful precedent and is to be applauded.

By all means, do what you can to minimise costly workplace errors and mistakes. But also remember that crying over spilled milk is, in the bulk of instances, counter-productive and disruptive. It expends a lot of potentially-positive energy that could be far better spent elsewhere in your business and could even lead to further hits to your bottom line through wasted time and drops in productivity through ‘spooked’ staff.

Mistakes will always happen in business. When they do, identify the problem. Address it positively. Move on quickly.

#metoo: Managing harassment out of the workplace

debbie@elr.net.au (Debbie Morrison) — Mon, 15 Jun 2020 03:34:55 GMT

#metoo: Managing harassment out of the workplace

If the last few years have taught the world anything, it’s that every person regardless of their age, ethnicity, sexuality or gender has the right to go to work in a professional and inclusive environment where they can perform their duties free from lewd and suggestive comments, unwanted advances and physical harassment.

As more and more high profile cases continue to make the headlines, where senior male figures have been called out for using positions of power to mistreat their female peers or subordinates, there can be little doubt sexual harassment (or any other kind for that matter) isn’t just an issue confronting Hollywood and the Entertainment Industry.

While individual workers are, ultimately, accountable for their own actions, it’s clear managers and employers have a responsibility to set the tone for what is and isn’t acceptable in the workplace. It’s not unreasonable to foresee many companies may soon find themselves firmly in the legal crosshairs following instances of harassment that occurred ‘on their watch’.

So, what can you do to stop it?

Firstly, the rules around such behaviour must be crystal clear for all employees – male and female. No grey areas. No excuses. No exceptions. Document the rules, share them with all employees and remind your entire team during the course of the year so it’s always fresh in their minds. Step out of line? Then prepare to face serious consequences.

Secondly, it’s essential to encourage an open workplace culture where all employees, regardless of seniority, are empowered to speak up on any issues of harassment they may personally experience or observe. Have a clear process of reporting such behaviour – and stick to it. The days of turning a blind eye are long gone, and rightfully so.

Thirdly, if complaints are made they must be acted upon, formally and transparently. As we’re beginning to see, attempting to keep things hush or sweep indiscretions under the carpet is a hopelessly misguided business strategy that does no favours for any party. Inevitably the truth will find its way into the public domain, and the ramifications will then be far worse – eroding reputation and confidence – not to mention the considerable distress such surreptitious actions can cause for those affected. Recognise the issue, own the issue, and take swift steps to address it – be that by engaging formally with both parties, HR, or even the police if a situation warrants it.

Finally, and this is where things can get messy, it’s important to understand and recognise the rights of your employees. Sometimes the way forward will be very clear. But if a situation seems complicated and the right course of action is less obvious, it’s vital to seek qualified legal assistance before making decisive actions.

Business as unusual. Re-engaging teams in a post-Covid-19 workplace.

debbie@elr.net.au (Debbie Morrison) — Wed, 20 May 2020 03:31:00 GMT

Business as unusual. Re-engaging teams in a post-Covid-19 workplace.

In the last few weeks there have been signs from both Federal and State Governments that Australia may soon start to emerge from the worst of the Covid-19 crisis. While there’s still much uncertainty – and no guarantee there won’t be more twists and turns – the roadmap for the easing of restrictions in coming months makes it an entirely prudent time for business managers to start thinking about how best to help their teams return to ‘normal’ when the time comes.

What is normal?

The first thing to do is try and form an understanding of what ‘normal’ will actually mean. What might a post-Covid19 world look like for your business and your workforce? This is no small task.

Of course, one thing the future will almost certainly involve is a range of additional workplace health and safety measures. But hand sanitiser, lift quotas and socially distanced desks are only small parts of a much bigger picture. Succeeding under your ‘new normal’ may require you to re-establish, redefine or even completely rewrite expectations that have shifted. Rebuilding disjointed client relationships is another task likely to require urgent attention. As is understanding changes to the behaviour of your competitors and, perhaps most critically, assessing any lingering psychological impacts on your team members and suppliers.

All of these areas, and many more no doubt, will need to be carefully considered well before forming any concrete idea of what your new ‘normal’ will be. So it’s best to get the wheels turning right now if you can, so you can hit the ground running.

Watch-outs

Turning specifically to your team, there are several things to be especially mindful of. As has been well analysed in the media in recent months – and by ourselves – spending such an extend period away from the office working remotely will have affected different employees in different ways, both positive and negative. For example, it’s highly likely some of your team may be very keen to keep working from home, at least in some capacity. Can this work? Or, perhaps more importantly, how can you make it work especially for key team members you don’t want to lose?

Another very real potential challenge could be re-engaging team members who’ve lost their usual focus and intensity, having spent long periods away from the energy of face-to-face team meetings and projects. How can you help them regain their motivation? One of the best strategies will likely be to quickly re-establish clear routines that bring your team/s together in positive and collaborative settings. Your creativity will be rewarded here.

Flexibility is everything.

Covid-19 has already presented the world with one of its greatest tests of resilience since WW2 – and this no doubt will continue long after offices have reopened and the economy starts whirring back to life. The key is to stay the course. Keep doing what you’ve been doing. Stay vigilant. Keep communicating. Be flexible. Lead with optimism and energy. But, above all, have empathy. Lots and lots of empathy.

WFH. WTF? How to make working from home…work.

debbie@elr.net.au (Debbie Morrison) — Thu, 23 Apr 2020 03:30:09 GMT

WFH. WTF? How to make working from home…work.

Tumultuous. Chaotic. Brutal. Existential. Whichever words you prefer, the past few months have been hugely challenging for businesses and employees all over the world. But amidst the continuing disruption and upheaval to the ways we all work, it’s worth remembering remote working was already experiencing a rapid rise long before Covid-19 came along – powered largely by the twin drivers of high-speed internet and workforce casualisation.

This is important. For while there’s nothing quite like Government-enforced lockdowns to turbo charge the number of Australians suddenly working from home (otherwise known as ‘WFH’), it means there are already plenty of tried and tested strategies to optimise the efficiency of socially-isolated workforces.

The good news is if you get it right the benefits can be significant too, global pandemic or not. Research conducted by Australian social analysts, McCrindle , found 55% of Australians report to being slightly or significantly more productive working from home than in an office environment – more than half! When given the choice, 78% Australians also expressed a desire to spend at least some of their time working from home, suggesting there are very real benefits in the space of employee morale, a powerful contributor to workplace efficiency.

Rapid change is hard.

The Covid-19 crisis has impacted almost every facet of life and business – and it’s happened very suddenly. Even for those not directly affected, there are indirect changes and uncertainties to be navigated every day. This calls for considerable adaptability on the behalf of individuals and heightened empathy from managers – qualities not everyone possesses in equal measure, as any HR person will attest. Hard as it is, try to remain ever-aware of this, and encourage your team members to do the same. Tread softly and listen closely. People are far more anxious than usual.

Minimise distractions.

Ask any freelancer. Arguably the greatest single threat to an effective WFH set-up is the constant risk of disruptions, however well intended they might be. Children, partners, social media and even pets can have a draining ‘stop-start’ effect on our focus and productivity. Try and set some boundaries around non-work contact and ideally create a dedicated workspace or room where these can be minimised.

Routine, routine, routine.

Humans, by nature, are creatures of habit. We like familiarity and routine. While you may not be physically in the office, you can still act as if you are. Create a consistent work schedule and stick to it. Start at the same time each morning. Block out your diary just as you normally would. Set reminders. Schedule Zoom meetings. But, perhaps most importantly, allow for quiet times in your day so you can actually get things done. Oh, and wear work clothes rather than staying your pyjamas all day!

Stay connected.

Physical isolation shouldn’t mean professional isolation. In fact, this should be avoided at all costs! While some employees might enjoy the solitude, many won’t. It’s essential to keep your team connected. The good news is technology can really help here. Video conferencing and cloud-based collaboration software is now easily accessible via desktops, laptops, notebooks and smartphones. Our strong advice is to embrace them all and use them often. Stronger connections drive stronger teams. If you are unsure of remote work best practices or require advice on managing remote teams Toptal offer a number of great resouce including learnings across all areas of remote work experience via The Suddently Remote Playbook.

Stay active.

The concept of ‘active body, active mind’ is nothing new in the workplace. But, given the many added stresses we’re all facing right now, it’s arguably never been more important. While social isolation measures may mean we can’t pursue our favourite physical activities, we can still find ways to work up a sweat. Consider using your old commute time for some daily exercise each morning. Ride, run, stretch, do yoga…. walk the dog. You’ll feel better for it. And your work will most likely be better for it too.

Trust and empowerment.

Ultimately, whatever your business type, location or size, the one thing that sits at the heart of any successful WFH set-up is trust. Employers need to give this to their team by empowering them to work from home with confidence and respect (rather than suspicion). Experience shows the vast majority of employees will, in turn, repay that trust through their commitment, actions and outputs.

Just remember to get out of those pyjamas!

Is IP walking out your door?

debbie@elr.net.au (Debbie Morrison) — Mon, 06 Apr 2020 04:55:56 GMT

Is IP walking out your door?

Have you ever considered how much it costs to lose a key team member? Some studies show it can be anything up to 200% of the person’s annual salary. At ELR Executive we actually think that seems rather low, especially if you factor in the associated ‘IP Drain’ – that is, the cost of the knowledge that walks out your door the day they leave. From our experience across many industries this cost is very real. It can be felt for months if not years into the future and manifest itself in many ways.

Of course no amount of planning can guarantee key people will never leave. But you can certainly take steps to greatly mitigate the damage in such situations. The vital thing is to do it now – before the horse (okay, team member) has bolted.

Irreplaceable? No such thing.

It may not seem like it at the time, especially if the departure is sudden. But it’s worth remembering no-one is irreplaceable. Or, to put it more accurately, no one should be irreplaceable. Sure, they may have years of experience and knowledge, they may play a central role in critical client relationships, they may posses an outstanding work ethic and be hugely popular within your team. But while initially stressful, their departure may ultimately provide an opportunity to make some exciting changes and improvements in your business.

Are you Reactive or Proactive?

Reactive businesses generally assume they must immediately find a replacement when a key person leaves. This is frequently true, but only due to them having a lack of other alternatives. It’s also fraught with risk as it’s often a rushed process.

Regardless of how good they are, it can take many months for a new employee to ‘bed in’ and reach their full productivity, which again caries a cost to the business.

Proactive businesses, on the other hand, have already considered the impact of key departures – long before they actually happen. Rather than make knee-jerk decisions, this foresight allows them to calmly implement a relevant succession plan for that employee and/or department. Perhaps responsibilities can be shifted or divided? Maybe someone (already identified) can be promoted from within, with a less expensive employee hired to replace them instead? There are usually many options; the important thing is to have considered them well beforehand.

What does succession planning involve?

Organisations who do it best are typically those with robust internal processes for talent identification and development, especially in core departments and positions. They also make information sharing a real priority to help spread the reservoir of knowledge throughout the business and, as a result, minimise the effects of IP Drain. Sure, this all takes time and effort, but the rewards can be significant. As and when key employees depart, or perhaps the business experiences a surge in growth, they more often than not have very capable employees ready to step up and fill the breach.

Just a final thing to bear in mind. If your succession plans involve changing the job description or responsibilities of another team member, be aware of what might constitute a ‘redundancy’ or ‘termination’. Seek expert legal advice if you’re in any doubt.