BUSINESS & GOVERNMENT A COMPLEX DANCE

What every CEO and board need to know about managing their relationships with government. Contents

Our approach 3

Acknowledgement 4

Respondents 4

Introduction 6

The relationship needs to be stronger 8

The is often left out 12

There is mutual lack of understanding 14

Who owns the relationship? 18

CEOs need to build long-term relationships 19

There is a role for chairmen 22 Our approach

Government aff airs strengthens the foundations 22 Korn Ferry conducted face-to-face Lobbyists smooth the path 24 interviews with former Australian politicians, senior public servants and leaders in public Industry associations present a united view 26 policy debate who currently have roles in business. We also spoke to two prominent 28 Political donations do not equal policy outcomes New Zealanders who have deep knowledge of the intersection between government and Learning the steps 30 business. Our approach was apolitical; our Resources from Korn Ferry Institute 31 aim solely to learn how big business and government can establish relationships that Contact 31 will improve policy outcomes for industry and society more broadly.

All respondents are business leaders and:

1 is a former prime minister

5 were state

1 was a chief minister

3 previously worked as senior public servants

1 was a union leader

3 were federal government ministers

6 lead or have led industry associations.

The interviews were conducted between March and June 2019.

2 3 Acknowledgement Respondents

The Korn Ferry Institute acknowledges the Hon AC Hon Helen Coonan Tony Shepherd AO generosity of those who gave their time Previously: of (2007–2012) Previously: Minister (2001–2007) Previously: Federal public servant 1964–1979 and and shared their knowledge to assist in the Currently: CEO Australian Banking Association, Currently: Chairman Australian Financial Complaints President Business Council of (2011–2014) preparation of this report. Their contribution various NED roles. Authority and Minerals Council of Australia. Various Currently: Chairman, Macquarie Specialised Asset will help inform leaders who wish to https://www.ausbanking.org.au/Bligh NED and consulting roles. Management, SCG Trust and GWS Giants. Various NED improve relationships between business and https://www.afca.org.au/Coonan and consulting roles. governments. We note their former government Hon Stephen Bracks AC https://www.macquarie.com/mgl/com/gif/about-us/ Hon Peter Costello AC positions and current business roles in the Previously: Premier of (1999–2007) board-members following section. We also acknowledge their Currently: Chairman of: Cbus Superannuation Fund, Previously: Treasurer of Australia (1996–2007) broader contribution through policy, board, Maurice Blackburn, McKell Institute, MCG Trust. Currently: Chairman Board of Guardians–futurefund, Dr Ian Watt AC industry and advocacy work. Various NED and consulting roles. Nine Entertainment and ECG Financial. Previously: Secretary of the Department of the Prime https://www.stevebracks.com.au/ https://www.futurefund.gov.au/Costello Minister and Cabinet (2011–2014). Currently: Chair of the International Centre for Hon AO The Rt Hon Sir Bill English Democratic Partnerships, former chairman BAE Previously: (2007–2010) Previously: Prime Minister of New Zealand Systems Australia, NED at Smartgroup Corporation Currently: Chancellor , Chairman of: (2016–17) and Citibank. BioCurate, MTAA Superannuation Fund. Various NED Minister for Finance & Deputy Prime Minister of New http://ir.smartgroup.com.au/Board-of-Directors and consulting roles. Zealand (2008–2016) Jennifer Westacott AO https://www.latrobe.edu.au/Brumby Currently: NED of Wesfarmers. Previously: Director-General of the NSW Department https://www.wesfarmers.com.auEnglish Kate Carnell AO of Infrastructure, Planning and Natural Resources and Previously: Chief Minister, ACT (1995–2000) Hon Nick Greiner AC other senior public service roles in Victoria and NSW. Currently: Australian Small Business and Family Previously: Premier of Currently: CEO Business Council of Australia Enterprise Ombudsman. (1988–1992) (2011–). Various chair and NED roles. https://www.asbfeo.gov.au/Carnell Currently: Federal President Liberal Party (2017–), https://www.bca.com.au/Westacott Chairman of QBE Asia Pacifi c, CHAMP Private Equity. Hon Various NED and consulting roles. Previously: Foreign Minister of Australia http://www.nickgreiner.com.au/ (2012–2013) and Premier of New South Wales (1995–2005) Phil O’Reilly ONZM Currently: Industry Professor (Business and Climate Previously: Chief of BusinessNZ Change), University of Technology. Various NED (2004–2015) and consulting roles. Currently: Chair of Board of Business at OECD and https://www.uts.edu.au/Carr Managing Director Iron Duke Partners. http://www.iron-duke.com/people/phil-oreilly/ Hon Greg Combet AM Previously: Cabinet Minister (2010–2013), Secretary, Heather Ridout AO Australian Council of Trade Unions (1999–2007) Previously: CEO Australian Industry Group Currently: Chairman IFM Investors and Industry (2004–2012) SuperFunds. Various NED and consulting roles Currently: Chairman Australian Super. Various https://www.industrysuper.com/Combet NED roles. https://www.australiansuper.com/about-us

4 5 Introduction

Convergence, globalisation and digitisation are Increasingly, Korn Ferry’s work with boards, disrupting and redefi ning business, government CEOs and C-suite leaders is informed by the and society. For many industries, uncertain need for an organisation’s most senior executives economic and geopolitical conditions have to understand, engage with and respond to brought increased regulatory interventions and a government as a key stakeholder. This emphasis on fl uid policy environment that can, with little notice, government relations expertise at the top planted impact an organisation’s performance. the seed for this report and a deeper interrogation of the sometimes fraught relationship between Government relies on business to support and business and government. deliver public policy, and for most businesses – their “licence to operate” depends on their ability How can our business leaders receive the best to work – and comply – with government. Theirs advice on how to forge a constructive relationship is a complex dance – which favours those skilled with government? Who better to advise than in the art of stakeholder management. those with experience on ‘both sides of the fence’ – people who have worked in and with It is therefore unsurprising that one of the most government, either at ministerial or advisor level important relationships for our prosperity is – and who have also had careers in business? By between business and government. This is speaking to former politicians and those whose particularly so in highly regulated industries, careers have closely intersected with government although all businesses – from our biggest in Australia and New Zealand, this report off ers employers, to the corner milk bar – have some advice for business leaders on how they can level of government interaction. improve their relationship with government and better serve their company, their industry and their Trust in our institutions has eroded during the past nation. The fi rst step is to recognise that it needs decade, and CEOs working in sectors that rely on to be done. policy stability and consumer trust, have had their leadership tested. The very best CEO will falter if Our report, Business & Government – A Complex he or she cannot navigate an ambiguous public Dance, examines the relationship between these policy environment and negotiate with an ever- two important institutions. It is a resource for broadening fi eld of government stakeholders. boards, CEOs, executive teams, and government aff airs practitioners. Those serving in government will also be interested in views captured in this report.

6 7 The relationship needs to be stronger

It’s not going to be easy to improve the relationship as The Australian national interest is always There are many factors contributing to the tension ministerial offices are very tactical and transactional and their best served by a strong, vibrant and between government and business: a mutual lack lens is heavily political. Ministerial offices are deeply involved in of understanding of how each operates, a 24-hour outward looking economy generating jobs policy development – while they always had a role, the public and opportunities for Australians. It is a news cycle that doesn’t allow for considered and prerequisite for social justice. To achieve this, careful analysis of issues, a lack of interest by service used to own this – and they view the world very differently. government to engage with business and a lack of you need a strong, innovative and dynamic This can lead to more short-term and tactical policy-making which expertise by business to engage with government. business sector and government has to have The rise of the “professional politician” has led is very difficult for business which likes a longer term and more a relationship with that business sector. to the demise of political candidates who have predictable approach. We’ve seen a number of examples of -John Brumby worked outside the political system and have an this in recent times. The value to society of a productive, working understanding of business. Plus, the fragmentation -Heather Ridout relationship between business and government is in Australia and New Zealand of the major political clear; government creates the policy environment parties has broadened the number – and interests – the levers – for the economy to grow and – of minor parties and independent politicians, business uses those levers to create jobs and adding further complexity to government relations. Some respondents felt the relationships in Australia were better prosperity. at state level than federally, yet they mentioned a reticence by Many in government see business as self- business and government to engage with each other. In NSW this Yet, despite the interdependent relationship interested and transactional in how it interacts was attributed to a fear of being viewed as attempting to influence between public policy and prosperity, most with government by engaging only when there government to grant favourable outcomes on projects. One respondents to this research felt that in Australia, is an issue. Conversely, businesses seeking respondent noted: “CEOs are reticent to come to political events. the relationship with governments – spanning the long-term commitment on policy that will support Politicians and, even more so, public servants are very risk averse last decade or so – was poor. Terms such as: investment for future innovation and growth are when it comes to being aligned with business.” Another felt business “love/hate, necessary evil, average to poor, patchy frustrated by the tactical and transactional nature relied too heavily on industry associations to be the conduit into to bad, at the lowest ebb in my working life” of politics. government: “More direct relationships are important and beneficial reflect deep frustration with how governments and plus it’s better for government to have that direct input.” There is scope for business and government business interact. While some respondents were to improve their relationship. It needs to be slightly more optimistic, “it’s medium at best, but Government is sceptical of business because they see business there’s a lot of common ground”, all agreed that deeper and conducted in a less combative as overwhelmingly self-interested and business is sceptical over the past decade or more, the relationship political context, which is when engagement of the need and quality of regulation, and the quality of the between business and government should have tends to happen. Everyone understands people in government. The perception – or the reality – is that been stronger. that businesses must represent their own the better people are in business and advising business. We interest, but it is best when they’re really need the people working in government – the regulators, the Business does the heavy lifting when it comes focused on the policy changes they want from procurers, and the contract writers – to be of equal ability to to growth. That leaves two clear imperatives government and are transparent about the people in business and their advisors. for government: first, governments have to reasoning why governments with good advice -Nick Greiner understand that businesses are going to can make good judgments. assemble most of the capital and second -Greg Combet When asked to describe a time when the relationship worked best, that we need confidence and certainty to almost all Australian interviewees went back to the mid-1980s, the do that. The economy isn’t a tool to punish Hawke government and the “accord agreement” where unions wrongdoing because the real losers when the accepted some responsibility for Australia’s economic prosperity. economy stalls aren’t just large businesses, They also referenced the mid to late 1990s and the early terms of the when business and government worked they’re the everyday Australians that rely well together to implement the GST. The Hawke and Howard on them. governments, while politically on different sides, were reforming -Jennifer Westacott governments and shared a willingness to engage with industry for the betterment of Australia. They understood that business needs certainty and confidence if it is to invest in jobs and innovation.

8 9 In New Zealand people know that the relationship Testing the relationship

needs to be respectful because they are going to The relationship between business and government is run into each other. However, it is a relationship that tested when policy announcements greatly affect the depends on believing the other side has some performance of organisations and industries. There have been successful public lobbying campaigns by empathy with your drivers. business that have reversed policies – the campaign -Sir Bill English against the 2010 mining tax in Australia is one example – however, most respondents to this research advised business not to advocate publicly against There would be few of the big policy and government and business is generally closer than governments, but rather to do the work behind the legislative reforms over the last 30 years it is in Australia. This is partly due to the smaller scenes by firstly briefing the bureaucracy and the where business hasn’t had a recognised and size of the population and a government structure minister’s office. Public criticism should only be used as a last resort. respected place at the table and I feel like that that is less complex than the many layers of government – both in the bureaucracy and political is less the case now than it has been for quite While not shying away from public comment, office – in Australia. a long time. There are lot of things driving particularly if the company or sector is under that; some of the responsibility falls at the The relative ease of access to both politicians and attack, the best advice I could give is to be feet of business, further complicated when a senior bureaucrats in New Zealand doesn’t mean privately critical on things that you really don’t government has either a one seat majority or business can consider relationship building easy. like and believe are an affront but shut up no majority. It needs to be done strategically with long-term publicly. Only make public comments if nothing -Anna Bligh goals in mind. And business needs to invest time in else has worked and the failure of government is understanding the business so egregious that you have no option. But that is TAKEAWAYS Australia’s economy is different now, as is of government. the shape of the government, however the absolutely and completely a last resort – never a inclusive policy processes followed by those The core thing that businesses need to first resort. BUSINESS LEADERS AT CEO two administrations provide a blueprint for how do when they are dealing with politicians -Tony Shepherd AND BOARD LEVEL, WHO effective a constructive relationship between in New Zealand is to first understand them LEAD ORGANISATIONS THAT Public criticism is a last resort. Try everything government and business can be. rather than worry too much about what ARE PROFOUNDLY IMPACTED else because you never use your best weapon they are going to say. By understanding BY POLICY SHIFTS, NEED TO I saw a great advantage in a cordial first and the prospect of going public is probably the government’s motivation businesses VIEW GOVERNMENT AS A relationship between the state government your best weapon to get your way. If you back a can understand how to engage in a CORE STAKEHOLDER. and the business sector. I certainly didn’t want government into a corner, it’s a risk; you may win persuasive way. to hear it said that you couldn’t get to see but a government might find, for example, that -Phil O’Reilly a minister in my government. Business was those damaging comments from the CEO are RELATIONSHIPS MUST BE entitled to a hearing and if a major business If government and business are to meet their out there and the damage is done so “What DEEPER AND CONSISTENT. wanted to see me, they didn’t have to go obligations to society by creating policy and do I care?” TRANSACTIONAL ENGAGEMENT through a lobbyist; a call to my office would implementing programs that grow the economy, - DOESN’T WORK FOR LONG-TERM have got them a meeting. they must first accept their co-dependency. When MUTUAL UNDERSTANDING OF It is much harder to have hard-edged fights -Bob Carr they engage on policy, recognise their differences CHALLENGES AND ISSUES. but work to improve their relationship and the with politicians and the political process in New In New Zealand the relationship between outcome, everyone benefits. Zealand because this is such a small place and WORK BEHIND THE SCENES TO so well connected. To deploy the nuclear option INFLUENCE POLICY – PUBLIC is risky. Much riskier than it is in places like CRITICISM SHOULD BE A LAST Australia, the US or Britain. RESORT. -Phil O’Reilly

10 11 The opposition is often left out The crossbench is increasingly powerful

The cross benchers are powerful, and I Having a bi-partisan Investing time with a shadow got such a good run out of think business needs to cautiously explore approach to government in a minister makes commercial the , but the phone ways of communicating with people we can country like Australia where sense. The shadow minister was cut off in 2007 and it group as right-wing, populist, small parties, we change governments may be representing a took years to turn it back on. or independents in the Senate and the portfolio, which they have little over time – and nobody is The negative remarks about state parliament. background or experience in, guaranteed a long-term business from senior Labor -Bob Carr so there is an opportunity to role – is prudent. In fact, if members was not what you broaden their knowledge while you’re doing something in an wanted to see in a society An influential crossbench in Australian politics will building a relationship. The most likely continue as major parties experience area that is controversial it is where we’re dependent on deeper their knowledge of an a fragmentation of their traditional voters to sensible to have a dialogue the business sector. You pay organisation and industry, the independents and single issue or minor parties. For with the opposition. If they more informed their decisions a price if you don’t nurture example, in Australia’s 46th parliament there are six feel they’re being engaged on legislation. those relationships. In 2007 crossbench MPs in the House of Representatives and treated with respect business paid a price. The and six crossbench senators in the Senate.1 The they’re less likely to poke Sometimes the relationship importance of the crossbench was evident in you in the eye. Or if they do, can be strengthened by an paid a price. The Australian the lead-up to the 2018 Royal Commission into they may be less strident invitation to observe the economy paid a price, and the financial services sector, where theirs was an and more constructive. business operations. Site I think we’re all poorer for influential voice in support of the Commission. TAKEAWAYS -Tony Shepherd. visits can form very effective it. So that’s a good example New Zealand has a multi-party system. The ruling foundations to a good long- frankly of what doesn’t work. The relationship with the Labour party formed a minority coalition with the term relationship, and when -Dr Ian Watt ONE CERTAINTY IS THAT opposition is important for many NZ First party to govern and requires support on you’ve been genuine and OPPOSITION PARTIES BECOME reasons. The most obvious is confidence and supply from the Greens. given people the opportunity Businesses operating in highly GOVERNMENTS. that our political cycle means to see what you’re doing regulated industries particularly that opposition parties will at need a relationship with the and understand why you’re some stage be in government opposition and, increasingly, doing it, over time you’ll gain BUSINESS IGNORES OPPOSITION – and ruling parties will be in with the crossbench and the PARTIES AT THEIR PERIL. THE opposition. Another important people’s confidence. backbench. OPPOSITION – AND IN CERTAIN consideration is that opposition -Anna Bligh CIRCUMSTANCES – THE parties can move amendments, It starts with building a good Several respondents cited the BACKBENCH AND CROSSBENCH, stall or stop legislation. relationship with the shadow lack of engagement with the INFLUENCE POLICY AND IN MANY minister. Relationships are Try to develop a relationship opposition in the lead-up to the CASES, CAN EITHER SMOOTH ITS built up over time. It’s very with the political party in Australian 2007 election, which PATH OR HALT ITS PROGRESS. was won by a Labor government hard to come out of nowhere opposition. After the 2004 after four terms served by the when a new government election, federal Labor was Coalition, as a particular failure is formed and – I’ve been MEET REGULARLY WITH THE not seen by business as by business. there when that happens and RELEVANT SHADOW MINISTER. having a chance of winning literally people you’ve never government. That low time In the lead-up to the 2007 heard of are ringing you. in Labor’s fortunes was election a lot of the business -Anna Bligh START THE RELATIONSHIP WHEN precisely the time when community had not done IT IS EASIER TO FORM ONE, WHICH business should have seen the work with Labor and IS WITH SHADOW MINISTERS. shadow ministers. there were reasons for that. -Bob Carr Some of it was that they

1 https://www.aph.gov.au/senators_and_members/members

12 13 There is mutual lack of understanding I often think that people don’t understand two things: the complexity of public policy making and the politics of public Most people in big business say government Understand that no matter how passionate policy making. Governments aren’t purposefully going to do doesn’t understand business and there is a lot you are and how much economic sense or things that are politically stupid. A strong and diverse business of truth in that. Most people in government business sense it might make, if it’s politically sector is the backbone of a strong Australia and the business say business doesn’t understand politics and not going to fly, forget it. That’s something there’s a lot of truth in that. Some business business doesn’t get, yet it is so obvious. If community needs to work at making its case as clearly as possible people think they understand politics because what you’re asking for doesn’t have political to government. The business community can play a valuable they see it in the media, but they don’t really traction, it’s silly to keep banging your head role in assisting government to think through issues. have a grasp of the pressures people in against a brick wall. -Jennifer Westacott. government are under and what politicians -Helen Coonan will find persuasive – or not. The important role of the bureaucracy in -Peter Costello government policy formation and decision- If your particular organisation is going to Take politics aside and think about where It is not difficult in New Zealand to engage making is often not understood by business. The be the subject of a piece of legislation or public policy in New Zealand is created and with government, but I am surprised how little deep work of policy development is done by regulation, you have to engage with the it is in the ministries, the commissions and bureaucrats, evidenced by a survey of close to time business invests to try to understand process. As the people who are going to agencies. If you can describe ideas in terms 2,000 public servants that revealed 77% of the the process of governing. There are a few too have to make it work, you’ve got a real of good public policy outcomes with officials, time they spend with ministerial staff is on policy many CEOs who alienate the government development.2 Business has an opportunity to obligation to alert those who are designing then they will engage in conversation with because they don’t understand the drivers, participate more fully in policy development by it on where the pitfalls might be. you. However, they will reject arguments that and it appears, they can’t be bothered working more closely with the public service. This -Helen Coonan. are totally self-interested. learning. If a CEO considers government requires understanding of the process, the key -Phil O’Reilly. Making sure that the public service relations an irritating function that they have milestones, potential enablers – and barriers – to to put up with, then that doesn’t work policy development. understands the issues you’re trying to raise Business often bypasses the bureaucracy for anyone. with the government, taking into account because they think they can write to the -Sir Bill English Bureaucrats actively seek out the voice and views that they’re the ones that are going to minister about an issue. What happens to of external stakeholders in briefings prepared for give the advice. It would seem to me fairly that correspondence is a staffer, probably There is a deep lack of understanding by the minister and are often informed by the work fundamental, but it’s fascinating how many a departmental liaison officer, sends most business of how government operates in Australia, of industry associations. But business needs direct people do not do this. correspondence straight to the department described by one former state premier as “totally relationships with the various parties who make -Kate Carnell for feedback. And then it comes back with up the decision chain on legislation. An idea that mind-boggling”. departmental advice. So, if the department is warmly welcomed by a minister in a meeting Business also needs to understand the relationship has no idea about the issue or doesn’t This has led to misfires in relationship building with business can go cold or be killed off in the between the bureaucracy and ministers and their understand it, the minister is going to get and lost opportunities for business to contribute bureaucracy. Business should “do the rounds” of staff. One respondent noted: “The public servants to policy development. The starting point in the departments and meet with the senior public are not the staff of the minister’s office and do not bad advice and, unless it’s a major issue, relationship building is for business to understand servants who advise the minister’s office. perceive themselves that way. A minister has no there’s probably nobody in the office that’s that the government is approaching policy from official capacity to tell public servants how high going to be able to vet that advice. a different perspective – the nation’s interest – as to jump or how to do their job, nor should they.” -Kate Carnell opposed to the interests of an organisation. It is The government of the day and the public service also essential to know the political context of are interdependent partners in creating the policy policy decisions. levers that business relies upon.

2 https://theconversation.com/australias-public-servants-dedicated-highly-trained-and-elitist-97691

14 15 One respondent noted that many businesses do Mutual understanding between business and Politicians’ workload is vast not understand the structure and timing of public government is good for the nation. This doesn’t finance. The budget process drives expenditure mean they will always agree – that is unlikely. A staggering amount of work crosses a member of and therefore the policy cycle. Federally in However, an environment where both parties parliament’s (MP) desk and it takes substantial time Australia the annual budget process begins in understand the drivers for each – and the pitfalls to address the myriad of requests that come each November or December when the expenditure – will create a better pathway to good policy day. Most MPs have three roles: parliamentarian, review committee of cabinet (ERC) considers a creation and implementation. constituency representative, and party member. portfolio minister’s new proposals and expected Ministers have a particularly high workload which they major pressures and establishes the budget’s It’s impossible to generalise but you could conduct under extreme pressure, combined with an priorities. From February to April the ERC argue that the relationship is often like Venus intense travel schedule. develops the budget against the background of and Mars. The bureaucracy and some elected the government’s political, social and economic politicians have no comprehension of how Business doesn’t understand the pressures – a priorities.3 In New Zealand, there are five key business works, none, zero, none. Similarly, minister’s whole day can be filled with dealing phases to the budget process: strategic phase there are not a lot of business leaders who with complaints from the voting public and from June to December, decision phase from really get government; they either think stakeholder groups – the whole day or week. And January to April, the budget production phase, they’re a mob of incompetent idiots or it’s some of the issues are valid and some of them leading to the budget announcement in May, just a mystery to them. And so, therein are just totally nutty but that’s what they’ve got followed by the legislative and implementation lies the problem. to deal with. This puts enormous pressure on phases.4 -Kate Carnell ministers in terms of decision-making. -Tony Shepherd. The timing of a meeting with a minister will Mutual understanding is crucial to relationship depend on what stage you need to interact building so a better understanding on the You do not go to a minister over a minor matter. to get an outcome. And a lot of it depends TAKEAWAYS part of business about the pressures the Choose your issue carefully because they are on the budgetary cycles: a meeting two days government faces, ministers face, and the busy people – their diaries are bursting. before the budget is not going to work. public policy and legislative process is -Heather Ridout LEARN HOW GOVERNMENTS -Helen Coonan important. By the same token, building a Backbenchers are involved in parliamentary WORK – IT WILL SAVE TIME, Others noted that business should study the policy good understanding of the imperatives that committee work: studying the topic, taking advice, RESOURCES AND RESULT IN agenda that governments took to an election and business faces, particularly in a globally attending meetings and public hearings.5 It is time- BETTER POLICY DEVELOPMENT. understand that governments consider this their competitive world, is also extremely important consuming work, particularly for large committees mandate. Advocating for change that conflicts for governments. The senior public servants that involve travel to hearings. THE BUREAUCRACY IS A VERY with this mandate is unlikely to be successful. have a role to play in enhancing this mutual IMPORTANT STAKEHOLDER. understanding. I would have benefited, as a A lot of CEOs just have no idea about the CONTACT THE KEY DEPARTMENTAL minister, from senior public service officials workings of government and the time involved in HEADS AND ESTABLISH A MUTUALLY that engaged more with business. a ministerial role and some people, particularly BENEFICIAL RELATIONSHIP. -Greg Combet smaller businesses, have no idea of the pressures on ministers and the pressures on their time. When someone says they can’t fit them in, it’s UNDERSTAND THE CONTEXT IN not “rubbish”, it’s not like that at all. WHICH GOVERNMENTS OPERATE. There is a lot less hard power in New Zealand politics than you -John Brumby. THIS INCLUDES THE ELECTORAL might think. A lot of it is soft power and in exercising soft power MANDATE, BUDGETARY CYCLES you need to understand political rhythm. A lot of businesses don’t AND POLITICAL PRESSURES. understand the timelines, the specific challenges politicians face and the particular advice that they’ll be taking. -Phil O’Reilly

5 https://www.aph.gov.au/About_Parliament/House_of_ 3 https://www.finance.gov.au/budget/ Representatives/Powers_practice_and_procedure/00_-_Infosheets/ 4 https://treasury.govt.nz/publications/budgets/budget-2018 Infosheet_15_-_The_work_of_a_Member_of_Parliament

16 17 Who owns the relationship?

CEOs have a responsibility to actively engage their CEOs need to build long-term stakeholders and government is a significant stakeholder relationships for many industries.There is an important role for a CEO Waiting for a problem before acting is a People are doing the wrong thing for from time to time to stand up for their industry and to be common mistake made by busy CEOs for whom the right reasons on climate change. The prepared to speak out. I think government will respect government affairs isn’t high priority unless there immediate risk for business is not so much that if they’ve otherwise had a good working relationship is an immediate problem. But a lack of a strategic, the changing climate, but what regulators ongoing dialogue increases the risk of not having a with the business but if you are only ever throwing bricks think about the changing climate. Regulators voice when there is an issue. As Jennifer Westcott are increasingly likely to take a moral position then you won’t have much influence. said: “Business needs a continuous approach and and respond with heavy hitting regulation. a strategic approach. And, it needs to be a senior -Anna Bligh CEOs are missing this short-term, much higher approach.” regulatory risk and managing it can’t be It was curious to me that my most formal delegated. In my experience, if you are dealing with government, and you wish to engagements with the business leadership -Sir Bill English deal with a minister, it is the responsibility of the CEO or the chairman. If it’s were over contentious policy matters. It is The way a company works well with the important enough to get to a minister’s desk it is important enough for the not surprising that this occurs, but it does not Australian government is when the CEO CEO or the chairman to take it. And there is no substitute for that. If it was provide a good foundation for longer lasting rolls up his or her sleeves and pitches in and important enough for me as treasurer to be deliberating on something, then relationships and deeper consideration of regards a relationship with government as it was important enough for the chairman or CEO to come in and see me. I public policy. It’s important we have a more an important part of their key performance wouldn’t see a lobbyist. formal way for continuing engagement that’s indicators.” -Peter Costello outside the immediate political pressures. -Dr Ian Watt Some of the missteps by business in building a relationship with government can be -Greg Combet traced to a lack of judgment over who should be representing the company when The CEOs that do it well go out of their way CEO is the right level for most interaction, and liaising at ministerial and senior bureaucrat level. All respondents said the CEO needs to make sure that politicians understand three at times, the chairman at senior ministerial to own the relationship with some noting the chairman can also play a key role. One things: their business, that they know what level. The worst thing you can do is the mentioned that boards and management are unreasonably internally focussed and that government’s drivers are and they pick their quick “in and out”. Ministers don’t like it; their external focus tends to be short-term and transactional, rather than strategic. The times for engagement carefully. They don’t good governments like to build long-term transactional nature of engagement with government by business was noted by several waste the minister’s time. relationships. Consider what you’re going to respondents as how not to develop relationships. -Sir Bill English talk about, what your business does today, I don’t think CEOs and chairmen spend enough time on government what it can do in future and how you would relationship building; they spend more time worrying about the proxy like to work with government to do that. advisors and AGM-related issues and much less time on government -John Brumby relationships unless and until there is an actual issue where the interests of the corporation are seriously affected. The need for the CEO’s direct engagement with -Nick Greiner government is particularly relevant when business leaders and boards consider the impact of reg- Large firms will have a relationship with their portfolio minister. The CEO ulatory risk on their organisation’s performance. should have met their portfolio minister, be building a collaborative relationship Sir Bill English cited business and government’s on issues of importance in their sector and will feel that they can contact them. response to climate change as an example of an Below ministerial and CEO level, the minister’s chief of staff or advisors will issue that requires CEO action. maintain the relationships with the government relations person. -Helen Coonan

18 19 The CEO has to lead the relationship. If a significant politician A relationship framework for CEOs

or bureaucrat says of a major Australian company: “well I’ve CEOs who ‘roll up their sleeves’ and are respected for their never met your CEO”, that would ring alarm bells for me. government relationships share the following approach to -Tony Shepherd. relationship building: 1. Their approach to government relations is aligned with the overall strategy of the organisation. Most respondents noted that too much of the on understanding our political system. Some 2. They treat the relationship as long term rather than high-level liaison work is left to government affairs respondents mentioned the short-term nature of transactional. officers and external lobbyists, when it should be a foreign CEO’s assignment doesn’t lend itself to the CEO who is managing relationships with deeper relationship building. Others mentioned the 3. They go in person to meet ministers and have constructive ministers and senior members of the bureaucracy. challenges of keeping abreast of the shifting roles meetings about matters that are not only important to their One respondent said the relationship should be of ministers and their staff. All suggested that a organisation, but important to their industry and the nation. sufficiently close that the CEO can pick up the willingness to engage with our political system phone and the relevant minister will take their is a necessary part of the CEO’s role while 4. They meet with the shadow minister. call. Others said taking responsibility for the acknowledging the challenges. 5. They meet with department and agency heads – and relationship with government should be a key understand that the bureaucracy does the deep work of performance indicator for a CEO. Last year there were three new ministers for briefings and policy creation. many of the portfolios. That’s a problem for The relationship needs to be built with the a CEO deciding if they should spend a few 6. They map and meet influential people in government, or chairman and the CEO and they should nights in Canberra – why would you bother? on the periphery, who are important to their industry and view government as important as other -John Brumby organisation. This could include backbenchers, cross-bench stakeholders their business engages with. MPs and senators, and in certain circumstances, union leaders. -Steve Bracks First-time or foreign CEOs were advised to firstly map their management team to discover 7. They are aware of the politics relating to certain issues, but You’ve got to put the shoe-leather time in. the internal links to government, and work closely they don’t “play” the politics. You’ve got to work regularly on relationships, with their government affairs advisors and the 8. They take the time to understand the government’s mandate and you’ve got to be serious about it. board to learn the state of play for the organisation and how this influences decisions. -Dr Ian Watt and industry with the government and opposition of the day. This work needs to align with the 9. Their discussion with government aligns with statements Former politicians we spoke to said that when overall strategy for the business and consider they make in other forums. they were in government they preferred to how certain policies impact the business now deal with a CEO or chairman, rather than via and in the future. 10. They are well-prepared and do not waste the minister’s time. government affairs or a lobbying firm. However, they acknowledged that while the lead roles CEOs new to New Zealand firms were advised to in relationship building should be the CEO and learn from those with intimate understanding of chairman, government affairs or corporate affairs how relationships in New Zealand are conducted executives are a valuable resource for behind- but to be cautious of political bias. the-scenes engagement, research, intelligence Take advice widely, hear what people have gathering and for briefing the CEO on the current state of play. In certain circumstances, where to say but be conscious that their political specialised support may be required, lobbyists perspective may be partisan. The wisdom will be best placed to help the business reach of your board will be important, for they are the right outcome. plugged into the economy and how New Zealand operates. Join a business organisation CEOs who are from overseas and first-time and talk to your fellow CEOs. CEOs who head organisations in issues-rich -Phil O’Reilly industries were singled out as needing advice

20 21 There is a role for chairmen Perhaps the most important role for a chairman, The government affairs role and other board members, is to recognise the value The chairman is under-utilised and, given the of a constructive relationship with government, The role of head of government affairs has often-punishing travelling schedule of the understand best practice in achieving this, and duties particular to the organisation and industry CEO, the chairman could take some of the work with the CEO and key executives on creating they work in, however there are responsibilities government relationship load. a continuous, strategic approach. This will be the common to government affairs roles: -Jennifer Westacott right outcome for shareholders. • Lead or participate in the development I think a chairman has an opportunity where and management of government affairs, risk management and public policy strategy. he or she has got some personal contacts, Government affairs or where the personality of the chairman strengthens the foundations • Understanding public policy processes lends itself to relationships with politicians. and politics – without playing the politics. Some love the political process and they’ve It depends on how the business is structured got some sheen to their reputation. A but it’s a mix of the CEO and the chairman. • Ability to build relationships with influencers in government, opposition business would be ill-advised to overlook It’s not the government relations person; their and crossbench representatives. that advantage. role is to attempt to understand where the -Bob Carr government’s coming from, what they’re after, • Key relationship manager with relevant what they’re looking for. They should foster industry groups. While the CEO is expected to take the strategic relationships particularly at the staff or public lead – and most of the heavy lifting – in service level so that there is name recognition • Understanding how ministerial offices government relations at the top level, in certain – but the ministerial relationship must be at operate. circumstances there is a role for the chairman. senior level. This could be particularly relevant when dealing • Ability to apply a wider lens to key -Kate Carnell with government on regulatory matters, as the business decisions and advise the best approach: the politics, departmental key role of a chairman is governance oversight. Outsourcing the relationships at ministerial or viewpoint, the reaction of the crossbench, Similarly, when there is a significant issue that has senior bureaucrat level to government affairs or or as is a common refrain in Australian the potential for pernicious legislation that will external lobbyists is not best practice, however politics – “the pub test”. be an issue for the company and shareholders, each are an important part of the broader political the chairman as head of governance needs to be system where relationship building is multi-layered. • Ability to influence senior internal involved. This doesn’t mean the chairman is acting In-house government affairs executives understand stakeholders on response to government outside the strategic remit – more that the chair- what the layers mean, who has influence, and how and public policy announcements man is able, through their experience, networks, or to ‘work’ within a political structure. They will know and reforms. Government affairs availability, to take the lead on a particular matter. ministerial staff – such as the chief of staff, or key Utilising the chairman isn’t necessarily an either/or advisors and they will have relationships with • Understanding of key regulatory matters should have a relationship decision as there will be issues where having both people in the department and regulatory bodies. affecting the industry and for those in listed strong enough to pave the chairman and the CEO engaged is the right companies, a working knowledge of ASX the way for a meeting approach. Having a government affairs office or disclosure rules (or NZX equivalent). external advisory/lobbying firm doesn’t with a minister. They need It depends on what the issue is. I can think • The take away the direct responsibility of the experience and communications skills to be able to phone the of big transactions that I had to approve that required to earn the confidence of the CEO, it just means you have somebody chief of staff, or minister involved a takeover, a corporate restructure C-suite team and the board. advising you on the options and the risks. or a foreign investor and I would expect the and say: “we’re not going If something’s going off the rails in the chairman to be more engaged in that. If it was to waste your time, but public domain, it is important to have something detailed, like a tax matter, I would experienced people to help you recover we need to see you”. expect the CEO to be involved. the situation. If you do get into trouble or -Heather Ridout -Peter Costello you have a serious issue, then obtaining external expert advice doesn’t hurt at all and is something I have benefitted from in my career. -Tony Shepherd.

22 23 Lobbyists smooth the path When I was the chief minister, I didn’t understand why businesses just didn’t ring In Australia there are approximately 200 registered me, rather than bring in a gun-for-hire to lobbying fi rms representing clients from every sit between a CEO and me. However, there 6 industry. In New Zealand, the profession, while not are certain times when lobbyists help, for regulated, is also mature, with lobbyists playing a example when there are ministers you can’t role in the political system. Lobbying fi rms are part get to, having a lobbyist that is trusted by the of the political process working with large compa- nies that require the resources and relationships government of the day is useful. they bring, and they work with smaller organisa- -Kate Carnell tions that may not have an in-house government It is clear from our interviews that while lobbyists aff airs capability. In New Zealand, where business are part of the system, they should not be the top- and government are less hierarchical than in line representative – or voice – of an organisation, Australia, access to ministers and senior bureau- for that role belongs to the CEO. However, they crats is not reliant upon external lobbying, however can add real value to a CEO who needs to build lobbyists can play a valuable role in preparing a their understanding of players and issues quickly CEO for meetings with government. and who doesn’t have the internal resources to do this. A lobbyist can take him or her to meet the If you are a solid CEO who has a story to appropriate government representative to discuss tell and you are confi dent in your own skin, their specifi c issues. They can provide context to you are more likely to be infl uential than the issue and advise the right way to infl uence a paid lobbyist. an outcome. -Phil O’Reilly TAKEAWAYS A lobby group is helpful – but this depends Most lobbyists are former politicians, senior public on the lobbying group – and most companies servants or political staff ers who understand the employ them now. But leadership must come rules of access to ministers and bureaucrats. Their CEOS HAVE PRIMARY employment history was viewed both negatively from the top. RESPONSIBILITY FOR THE and positively by respondents who, while they -Dr Ian Watt RELATIONSHIP WITH MINISTERS acknowledged there is a role for lobbyists, almost AND SENIOR BUREAUCRATS. The better lobbyists are experienced in working exclusively said that when they worked in govern- with business on managing issues related to ment at the most senior level, they did not wish to government and can make the diff erence in a meet with them, preferring a direct approach from DIRECT ENGAGEMENT IS THE CEO properly managing an issue that could result business. They did, however, acknowledge there BEST APPROACH. in an unfavourable outcome for the organisation. are lobbyists who are viewed as the best in their fi eld for whom that view does not apply. These Lobbyists can be vitally important when IN CERTAIN CIRCUMSTANCES THE doyens of lobbying are respected by all sides of you have an issue and while you wouldn’t politics and enjoy access to those in the corridors CHAIRMAN CAN PLAY A ROLE. outsource the management of it, you of power. would want advice from someone who According to most respondents, the main has good knowledge and connections GOVERNMENT AFFAIRS advantages of using a lobbyist are their ability to with government. They can really help PRACTITIONERS AND LOBBYISTS identify infl uence and power, gather intelligence, with crisis management, but you HAVE A SUPPORTING ROLE AND research, advise on policy development and map must get good people – you don’t CAN PAVE THE WAY BY PROVIDING infl uence on an issue they specialise in. want hacks. CONTEXT, INTELLIGENCE, AND -Heather Ridout CONNECTIONS.

LOBBYISTS CAN ASSIST WITH CRISIS MANAGEMENT.

6 https://lobbyists.ag.gov.au/register

24 25 Industry associations present a united view Crossbench advocacy requires expertise and resources Public engagement initiatives create Industry associations have got to take the Businesses that are members of an industry legitimacy for their industry, and the industry long-term view. No quick fixes, no side deals, association are encouraged to get involved by Industry associations can play associations need to be constantly doing it. If rather, build long-term relationships around working on committees and making sure their a valuable role in understanding you only pop up when issues that impact you strong values that help the economy and our voice is heard. and mapping the disparate views blow up, then people don’t get a sense of who society. Do not try to hoodwink governments, and positions of the crossbench. Once you have joined an industry association you are and what you stand for. or do short term deals, or mix them up with Two respondents cited successful don’t be a passenger. You’ll get the most out -Jennifer Westacott ‘facts’ that aren’t right. Talk about what the advocacy campaigns that involved of it by turning up and joining a committee. industry does and aspires to do, and how it discussions between members The most effective industry associations are That doesn’t mean you become an of industry association with the can work with government to get there. those that are policy focused, active in engaging “association guy” but if you’re always at the crossbench. The common element -John Brumby with government and constructively inform public back of the room, then you can’t hardly blame of these campaigns was the deep policy development. They hold industry-wide data The role of an industry association is to advance the association when it says things you don’t work done on mapping each and research and understand the impact of policy the interests of the industry and those who agree with. crossbench member, matching them on their stakeholders. participate in it. They develop and advocate for -Phil O’Reilly to industry representatives that were public policy that is good for their industry and either known to them or most likely A good industry association is one that can benefits the nation. An industry association What they shouldn’t do, according to respondents, to gain access, crafting targeted negotiate on behalf of its members and shake provides a forum for member interaction with is be the only conduit to government for business messaging for each conversation hands on the deal – not say “we now have to each other and those that can inform or assist – particularly large businesses with the resources and negotiating with all parties. go back to our members”. them, and importantly, they engage in a way that to represent themselves. Associations with small -Kate Carnell builds legitimacy. They should engage government to medium sized businesses as members are likely and the opposition in their policy work, and this to represent them at government level, but the Many of our conversations concerning industry should be done at the formation of policy – “big end of town” still needs to engage with gov- associations started with the remark: “It depends coming to the party late in the process doesn’t ernment direct. There may be policy issues where on the association.” This observation was three- give them a voice and doesn’t serve their industry. advocacy to government is strengthened when fold; it concerned the expertise of the people coordinated between the industry association running the association, the real or perceived and its members. Industry associations that represent their TAKEAWAYS partisanship of the association and the membership well are invaluable. When They can give you the lie of the land such as association’s contribution to policy development. governments are working through policy or Respondents who had low regard for industry who’s who and introduce you to contacts but legislative changes that will impact industries INDUSTRY ASSOCIATIONS CAN associations conceded that they “have their if there are any big issues, businesses must with many players, it is vitally important to PROVIDE A WHOLE-OF-INDUSTRY place” in the political system as representatives engage with government. They can’t just leave have a conduit that can do some of the leg POSITION TO GOVERNMENT. of their industry – but they are not the sole it to an industry association. work that is impossible for government to representative of business. -Peter Costello do. An industry that has reached a common THEY DO NOT REPLACE DIRECT The good ones really do engage with their position has undergone many robust Business relies too heavily on its industry CONTACT – BIG BUSINESS NEEDS members and government and are attuned discussions to reach that consensus. associations to be the conduit into TO DEVELOPMENT RELATIONSHIPS to the real issues facing their members. They -Anna Bligh government. They have their place, but WITH GOVERNMENT. can provide informal forums where you can they’re not a replacement for the engagement During my time in the ministry I valued a good meet with ministers and public officials in an business needs to have; they’re an addition. relationship with representative bodies. A environment where you can discuss issues Direct relationships are important and minister can’t possibly know every opinion INDUSTRY ASSOCIATION EVENTS openly. They can also confront government beneficial, and that’s better for government. and disparate opinion within a sector whereas AND BUSINESS FORUMS ARE on those important industry issues where the -Steve Bracks representative bodies have got an opportunity USEFUL MEANS OF NETWORKING individual company may prefer not to. BETWEEN BUSINESS AND -Tony Shepherd to try to understand a problem and bring it to a minister with a possible solution. GOVERNMENT. -Helen Coonan

26 27 Political donations do not equal policy outcomes

Political donations are not important I don’t think businesses should rely If you’ve got a legitimate business, why for access and shouldn’t be. upon donations. If I was a CEO, I wouldn’t elected representatives want to know -Greg Combet would pay to send my government how that business is doing and whether there affairs head to the forums which won’t are unnecessary regulatory burdens holding Businesses that donate to governments make, break or solve problems, but back the prosperity of business sectors. It is for a policy outcome are wasting are a good thing to do. The more a legitimate part of keeping informed about their money. Moreover, the consensus among respondents was that there is a people engage, the better, but they – business impacts more broadly than just for an trend away from business donations to and the community – shouldn’t delude individual business. Either you make political government and at best, they may themselves – that this is where deals donations illegal or you make the system work provide access. are done for it is simply not the case. as well as it can. -Nick Greiner -Helen Coonan If you donate, quite frankly it makes no difference how you’re treated by It can be useful to invest in a dinner Many former politicians we spoke to said donations government. You may be considered where you sit at a table with a minister are not as influential as people think they are, a “friend” but I don’t know of any for an hour or two so that they know and give little more than preferred access and invitations to the forums ministers or senior company which gets an advantage who you are. That may have some bureaucrats will be attending. They advised big out of donating – perhaps they gain impact, but these days political business to look for other ways to put their case to donations more broadly cause more TAKEAWAYS some access but in this age of probity government, or if they wanted to have a stake in harm than good to most companies. and ICAC they do not get a better government via donations, (which is their right) to outcome which is a good thing. Of -Kate Carnell do so to foster good government. DONATIONS ARE NOT AS course, a company is well within its Some respondents noted that connections INFLUENTIAL AS SOME I don’t know that donations are important rights to donate to a political party made with donors lead to ministers PEOPLE THINK THEY ARE. but being seen at events is helpful – you are whose policies appear to be more gaining vital knowledge about business. supportive of the industry they are in. Fundraising events can also provide getting to know people, developing long-term POLITICAL DONATIONS DO -Tony Shepherd opportunities for governments to learn relationships and showing people that you’ve more about the issues impacting business. got a stake in the whole thing. Having a stake NOT EQUAL POLICY OUTCOMES. While donations for policy outcomes were in the country is important. discounted as a good government affairs I learnt a lot about business and -Peter Costello FORUMS AND FUNDRAISING strategy, attending business forums and potential investors in NSW at political EVENTS ARE A CONSTRUCTIVE events held by industry associations and fundraisers, without compromising my If you want to make a donation, do so by all governments was considered worthwhile. WAY TO NETWORK WITH integrity or that of the government. I means, but do it in order to get good policy The forums bring together stakeholders POLITICIANS. didn’t have favourites in the business outcomes by supporting the election process. from various industries and levels of The idea of giving one political party a lot government and can help organisations sector. I saw giving people access as of money just so you can gain access is very lift their profile, build networks and gain my job. wrong footed in New Zealand. It is far better insight into the priorities of government. -Bob Carr to gain access because you’ve got a good policy idea that is good for New Zealand and aligned to your strategy. -Phil O’Reilly

28 29 Learning the steps Resources from Korn Ferry Institute

The Self-Disruptive Leader (2019) Government relationships bring together They are skilled communicators who are https://www.kornferry.com/self-disrupt many players: members of the ruling party, adept at building a case for change, or the opposition and minor parties, independent proposing a partnership with government Rising to the Challenge – Defining Success in Corporate Affairs Leadership politicians, the bureaucracy, regulators, that benefits society, their industry and their Rising to the challenge_defining success in corporate affairs leadership industry associations, media, advocacy organisation – in that order. They are also groups, lobbyists and – our primary audience agile and deal well with ambiguity. This is A Boardroom Guide to CEO Progression (2019) for this research – business, which often has its particularly important in Australia given the A Boardroom Guide to CEO-Progression_Korn-Ferry.pdf own layers of people involved in government immense change and churn at the federal engagement. Those involved must learn a government level over recent years, which Australian Women CEOs Speak (2018) complex dance – where the steps are rich brought about uncertainty to the policy https://www.kornferry.com/institute/australian-women-ceos-speak with ambiguity, nuance and conflict, and environment. Business craves certainty but where progress is delicately negotiated, accepts that the most stable of governments The C-suite: Moving Up and Moving In (2017) often contested and hard won. will make changes; a cabinet reshuffle will The-c-suite-moving-up-and-moving-in_Australasia result in new ministers, new staff, changes in Relationships are complicated. To succeed, the bureaucracy and new relationships to be The Future of Work (2017) they rely on mutual understanding, goodwill established. https://www.kornferry.com/institute/2030-the-very-human-future-of-work and respect. To thrive, they must share longevity, common purpose and trust. Boards are also key performers in this dance. The Tone from the Top: Taking Responsibility for Corporate Culture (2016) The relationship between business and Their first role is to understand the importance The-tone-from-the-top-taking-responsibility-for-corporate-culture_Australasia government is one that will work, and thrive, of government in the organisation’s if both parties are guided by one principle: stakeholder engagement and its potential for The Risky Business of CEO Succession (2015) to act in the national interest first. When self- disruption. This will influence how directors The risky-business-ceo-succession_Australasia interest, perceived or real, is the motivation evaluate and select leaders, and how they for negotiating the relationship, it will falter. approach what is, arguably, their greatest responsibility – the selection of the CEO. Business leaders who have developed and fostered productive relationships with Korn Ferry hopes this report offers insight Korn Ferry research team Contact governments understand this. They are into the nuance and complexity of engaging advocates for their industry, good corporate with governments and provides guidance to citizens and respect that they need to earn leaders who will learn from the advice shared Interviewers Korn Ferry, Australia their “social licence to operate”. They also by those with experience on both sides of the know that understanding the nuance and relationship. The business case for productive Patrizia Anzellotti Level 12, 410 Queen Street, Qld 4000 complexity of stakeholder relations is the engagement between government and Therese Doupe Tel: +617 3015 3700 difference between success and failure – business is clear and confirmed by the Level 20, 120 Collins Street, VIC 3000 perhaps none more so than government. findings in this report. Katie Lahey AM Tel: +613 9631 0300 Peter MacCauley The business leaders who build productive Skilful management of the relationship needs Level 18, Aurora Place, 88 Phillip Street, Tim Nelson relationships with government take to be a key performance indicator for our NSW 2000 Tel: +612 9006 3400 responsibility for engaging with both the business and government leaders, for when Annika Streefland bureaucracy and politicians while being they work together constructively, everyone Level 1, 5 Mill Street, Perth WA 6000 aware of the influence of other stakeholders. benefits. Learning the steps of this complex Hon Robert Webster Tel: +61 8 9217 3900 They are well informed and understand the dance involves commitment to a long-term electoral context of politicians, the policy strategy and accepting that the rules of this Project leader and writer Korn Ferry, New Zealand creation environment the bureaucracy dance aren’t always easy or fair. But those in works within and, the benefits of seeking the business community who learn the steps – Dr Kerry Little Walker Wayland Centre, Level 6, 68 Shortland alignment between the two with their and are prepared to re-learn steps every time Street, Auckland 1010 business opportunities. the rules change – will have the best chance Tel: +64 9 921 5900 of managing a professional and productive Level 1, Free Ambulance Building, 5 Cable Street, relationship with government. Wellington 6011 Tel: +64 4 460 4900

30 31 About Korn Ferry Korn Ferry is a global organisational consulting firm. We help clients synchronise strategy and talent to drive superior performance. We work with organisations to design their structures, roles, and responsibilities. We help them hire the right people to bring their strategy to life. And we advise them on how to reward, develop, and motivate their people.

About the Korn Ferry Institute The Korn Ferry Institute, our research and analytics arm, was established to share intelligence and expert points of view on talent and leadership. Through studies, books and a quarterly magazine, Briefings, we aim to increase understanding of how strategic talent decisions contribute to competitive advantage, growth, and success. Visit www.kornferry.com for more information on Korn Ferry, and www.kornferryinstitute.com for articles, research and insights.

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