The Hon Julie Bishop has urged the financial services industry to adopt unconditional leadership practices as it continues to respond to the fallout of the Banking Royal Commission.
By Ben McAlary
The Hon Julie Bishop has urged the financial services industry to adopt unconditional leadership practices as it continues to respond to the fallout of the Banking Royal Commission.
Addressing the “elephant in the room” Bishop recognised the challenge and reputational issue the Banking Royal Commission had on the financial industry but said that were “opportunities ahead” as the government moves to implement the Royal Commission’s recommendations.
From an observer perspective, Bishop had some hard truths for the industry as it responded to the banking inquiry, “I thought that the industry as a whole was too slow to respond to consumers concerns…. crisis management 101 was missing.”
In front of a packed Day 1 FSC Summit auditorium, Ms. Bishop said that it was going to take “effective leadership to rebuild trust and confidence to re-establish relationships with the consumer and customer base.”
The Hon Julie Bishop called for the decisions taken by leaders to be modeled on unconditional leadership principles that benefit a broad cross section of people, rather than the narrow interests of an organisation or entity. Bishop used the Marshall Plan, that rebuilt European economies following the second world war, to illustrate unconditional leadership that was universally beneficial.
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An unconditional leader harnesses their influence and responsibility to achieve positive outcomes in other people’s lives.
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On the flip side Ms. Bishop spoke about conditional leadership that has a much narrower focus and provided the current US/China trade negotiations as an example of where world leaders are displaying “narrow self-interest that can have damaging consequences more broadly.”
Ms. Bishop noted that it was the millennial generation who are, “more aware of global issues and are less likely to work for, or buy from, a company that they believe does harm to society or the environment,” and as a result are “much more inspired by unconditional leadership” than previous generations. Ms. Bishop warned however that “the reputational impact will be magnified if there are further instances of poor behavior or practices.”
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Leadership will require decision making, rapid decision making because leaders are expected to make decisions and get on with it.
Leaders are expected to make decisions and stick with them.
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During a Q&A discussion with FSC, CEO, Sally Loane, Ms. Bishop provided some insights into her life inside and outside of Capital Hill.
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On ambition
“I always wanted to be the Foreign Affairs Minister….I had this secret ambition to become the Foreign Affairs Minister in 1998… so I set out to prove to the Prime Minister that I would be worthy…I started to write opinion pieces on foreign policy…I was elected Chair of the Government policy committee on foreign affairs and elected Chair of the Joint Standing Committee on international treaties…eventually John Howard invited me down to his office and he said “’Julie, I’d like to make you a Minister…the Minister for Ageing’” Fast forward to 2013 “I was appointed Foreign Minister and was the first female to hold the role…almost 15 years to the day that I had the dream to become Foreign Minister…If you have ambition and a goal it is worth persevering.”
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On Boris Johnson
“Don’t underestimate Boris Johnson… He is witty, charming and eccentric… and he knows exactly what he is doing at every moment… He has appealed to the British public above and beyond the popularity that he does or doesn’t have within his own party and that’s a very smart tactic. He can focus on achieving an outcome and when Boris sets his mind to doing something, he’s unrelenting...If he applies his intelligence, charm, wit and energy to resolving Brexit than I think he would have put himself into a league of great Prime Ministers.”
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On life after politics
“It feels fantastic…I am looking forward to dedicating my energy and passion to causes which I feel strongly about…I am delighted to return to the private sector and work with companies that are innovative and creative and doing great things worldwide.”
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On politics and business
“It is absolutely essential that politicians and the business community engage regularly…there is too much focus by business on the federal budget…there is only a small amount of discretionary spending, yet businesses spend a lot of time trying to engage with politicians over the federal budget. The power of the Parliament is in the fact that we create and amend law and that’s where businesses really should be engaging with politicians.”
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On financial services legislation
“I believe in de-regulation and not over-regulation…I would be more impressed if we had less-legislation but more effective laws… I encourage business to be unrelenting in their engagement with legislators and regulators.”
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On female leadership in financial services
“The challenge is to put into place frameworks and networks in organisations so women don’t feel isolated…I also think there needs to be greater understanding of leadership styles between men and women…there needs to be more understanding that the most aggressive in the room doesn’t necessarily mean they will be the best leader in your team.”
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