CAREER CHANGE DIFFERENT STROKES More Australian companies are recruiting executives from other industries in their bid for a competitive edge.

STORY SALLY PATTEN PHOTOGRAPHY BY DOMINIC LORRIMER AND ELKE MEITZEL

BANKING › FAST FOOD

n a fast-changing world, companies are of the things that has changed dramatically Rob Coombe “Part of Maile’s role will also be to shift increasingly in search of fresh thinking over the past 10 or 20 years has been the says he couldn’t our thinking and champion a group- have gone into a and fresh approaches to give them the portability of talent. That is across countries, more dissimilar wide innovation culture at ANZ based edge over competitors. In a duopolistic but it’s also between industries.” industry when on developing and attracting service- he switched market such as , a key way to Gregory Robinson, managing partner at from banking to focused, technology-literate, innovative Iachieve this can be recruiting executives from executive search and board advisory firm fast food. and experimental people and teams,” chief different industries. Anecdotal evidence from Blenheim Partners, says: “Some organisations executive Shayne Elliott said at the time. executive search firms suggests that more and have come to the conclusion [that employing] Robinson points to other notable examples: more companies are doing just that. everyone from the same industry is not an Greg Barnes, who in 2016 moved from chief “Companies are trying to give themselves answer against new entrants or offshore financial officer at building products company the edge with people who look at a problem players and have deliberately avoided their CSR to ; Andy Penn, who from a different angle,” says Robert Webster, a sector as an executive hunting ground.” switched from insurance group AXA to , senior client partner at executive search firm Webster notes that the have been where he is now chief executive; Christine Korn Ferry. “It has really taken off over the past successful in recruiting executives from other Holgate, who went from health supplements 10 years with the digital revolution. People are industries, partly because they have a huge company to Australia Post; and more inclined to look for new thinking.” appetite for IT and digital skills. One of the Gordon Ballantyne, CEO of who Guy Farrow, managing partner of search most high-profile shifts was Maile Carnegie, was previously at Telstra. firm Heidrick & Struggles in , adds: who in early 2016 quit as managing director of Changing industries at the CEO level is the “There’s a recognition that you’re better off Google in Australia to become group executive exception rather than the rule. Analysis of the thinking more laterally. If you look globally, one of digital banking at ANZ Banking Group. 50 biggest companies in Australia by Heidrick

28 OCTOBER 2018 & Struggles shows only one chief executive, NUMBERS ROB COOMBE much to my delight – that the kids were all Sydney Airports boss Geoff Culbert, moved GAME posting them on the noticeboards in the industries. Culbert was formerly CEO of GE Switching from banking to fast store,” he says. “They were really proud of it.” Australia, an industrial solutions company. The second key contrast was the importance foodinitiallyfeltlikebitingoff of marketing. Back in the banking world, NOTABLE EXCEPTIONS more than he could chew. Coombe had all the names and contact details Outside the ASX 50, other notable exceptions of his clients, who provided the business with a include Alison Watkins, who took up the reins 16 Rob Coombe winces when he steady revenue stream in the form of mortgage at Coca-Cola Amatil from GrainCorp, and thinks back to his first few months payments, loan repayments, insurance Jayne Hrdlicka, who moved from running Number of running fast-food chains. In mid- premiums and superannuation fees. In the externally discount airline Jetstar to head A2 Milk. appointed CEOs 2013, Coombe was appointed chief executive food business there was no luxury of long- But further down the corporate tree, it is in ASX 50 of Craveable Brands, a private-equity- term, sticky customers. far more common. Of the 34 chief executives backed business that operates 600 fast-food “The importance of marketing was of a of ASX 50 companies who were internal restaurants, including the quantum difference than it was in banking,” appointments, 30 per cent changed industry hamburger and Oporto chicken chains. Coombe says. “The calibre of marketing is when they originally joined the company, Coombe’s previous job was running ’s infinitely better than anything I’ve ever seen in analysis by Heidrick & Struggles shows. retail , and before that he spent six years financial services. is a popular hunting running Westpac’s wealth arm. “[In financial services] the desire to attract ground, with the chiefs of telecoms behemoth 34 “I was quite taken aback, actually. It was new customers is actually not that strong. Telstra (Andy Penn), property group Scentre quite a difficult transition for me,” Coombe Whereas, in the food business, you live and (Peter Allen), conglomerate (Rob Number of says from his Sydney city office. “You couldn’t die by transactions that are happening on internally Scott) and property developer appointed CEOs think of two businesses more dissimilar. Even a daily basis.” (Steve McCann) all switching out of that sector. in ASX 50 though structurally they had similar functions, The former banker says the key skills Farrow says the opportunity to inject the nature of the work is completely different.” he acquired were digital marketing, the external talent is in the senior leadership team, Jumping sectors also meant Coombe was importance of location, the science of building or “CEO minus one” level. leaving behind a network of colleagues and good-looking stores on a limited budget and The quid pro quo is that the new employer contacts built up over 30 years, which made running effective supply chains. invests appropriately in the outsider. As hiring talent more difficult, as well as a dearth another senior executive recruitment expert of people off whom he could bounce ideas. SOUNDING BOARD says: “There has to be an investment of time by 9 From the outset two key differences So, what advice would Coombe give others both the company and its clients.” between the industries struck Coombe, who considering a big switch? There is reason to be sceptical that bringing Number of now chairs Craveable Brands. The first was the “I think the thing that helped me internally in talent from a different industry will solve a appointed calibre of the employees. Whereas high pay unequivocally more than anything else was CEOs in company’s problems. More than one expert ASX50who packets tended to attract talented people to [finding someone] I could use as a sounding in the field points to Andy Hornby, a British changed industry the financial services industry, the same could board. If you’re going to do it, try to find out when they joined food retailer who went on to run HBOS, one of the company not be said of the fast-food business. who those people are that you can go to. I Britain’s biggest banks, which nearly collapsed “In this industry, the stores are basically run think having access to those individuals fast- during the financial crisis. by kids. The average age in a store is about 17 tracked my development. What took me six “It can be a very positive experience to have and people aren’t doing it for a career either,” months to get up to speed could have taken a fresh set of eyes,” says Carol Lewis, director Coombe says. “The difference between me eight, nine months and that’s too long.” of global executive search firm Stanton Chase. motivating someone and leading someone Coombe found three people he could “But it can be a minefield. The question is who’s well educated and trying to build a confide in: Gordon Cairns, Woolworths whether an organisation’s culture allows it 3.5 career, as opposed to kids that are doing it chairman and former Craveable Brands chair, to be successful.” part-time, is quite big.” and Bob Mansfield and Peter Bush, both

She says management needs to back the Average number former CEOs of McDonald’s Australia. new recruit into the role, and the appointment of years spent POSITIVE FEEDBACK “I think the only other thing would be, if it is by internal needs to be explained to team members, candidates in the Coombe set about improving communication a new industry, just take at least three months because it can lead to resentment. The role immediately by setting up a closed Facebook page and before you tell people what you’re going to do. before being executive needs to have a solid 90-day and appointed CEO moving all staff training and learning and My instinct was to try and get that out earlier 180-day plan to track his or her performance development onto mobile phones. He than that [but] you don’t really know what and measure success. also found that Millennials appreciated needs to be done until you’ve fully immersed “Until they have earned their stripes, there is acknowledgment. Coombe started sending yourself into a new industry. often scepticism about what they can do and cards to staff members who had been the “So, make sure you buy yourself the 100 what they can deliver.” subject of positive feedback over the group’s days. People want you to come in with a 100- Source: Heidrick online channels. day plan. If it’s a new industry, you can’t have & Struggles “When I’d go around the stores, I found – that 100-day plan until you’ve done 100 days.”

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