transform and perform: IMD's guide to keeping australian businesses competitive

I recently attended the IMD Australia Management Transformation Forum in Sydney, where we discussed the increasing pressure on Australian business leaders to perform well today and transform for tomorrow.  

Misiek Piskorski, Dean of IMD Asia and Oceania, emphasised that businesses must constantly adapt their core operations to stay competitive today while exploring new growth opportunities for tomorrow. 

Australia has climbed to its highest global competitiveness ranking in 13 years, rising six spots to 13th according to the 2024 IMD World Competitiveness Ranking (WCR). This improvement is due to strong laws, stable policies, reliable infrastructure, and a skilled workforce. 

opportunities for 2024  

To break into the top 10, Australia should focus on: 

1. Advancing clean energy: investing in sustainable energy for long-term benefits.
2. Revitalising productivity: boosting efficiency across sectors.
3. Expanding participation: including more diverse groups in economic activities.
   
   

insights from dan jermyn 

Dan Jermyn, Chief Decision Scientist at Commonwealth Bank of Australia (CBA), highlighted the importance of culture and purpose. Here are some key points from his keynote speech: 

• AI training for leadership: CBA has provided AI training for its leadership team. 
• AI-powered services: partnerships with H2O.ai have improved fraud detection and natural disaster relief. 
• Responsible AI principles: CBA focuses on fairness, transparency, and security in its AI projects. 
• Modernising tech infrastructure: using AI to upgrade technology.
    

transformation panel discussion 

A panel featuring Catherine Livingstone (Chancellor, UTS), Lenka Bednarikova (Data and Analytics Practice Lead, Telstra Purple), and Jenny George (Dean, Melbourne Business School) identified key challenges and areas for improvement: 

• Valuing ideas and research: more investment in research and support for medium-sized businesses is needed. 
• Educational gaps: addressing the lack of Year 12 maths students and the underrepresentation of women in commerce. 
• Investment in innovation: long-term growth requires patient capital. 
• Gender equality: more male champions are needed to support gender equality and diversity of thought. 
  
  

improving business efficiency 

To enhance competitiveness, we need to focus on both running and transforming the business. The Future Readiness Center 2024 indicator report provides insights into how prepared we are for the future: 

• Ready for today: business success, strength, investor expectations, R&D efforts. 
• Ready for the future: early innovation results, business diversity, community engagement, ESG (environmental, social, governance).
   

leadership for dual transformations 

To manage the dual challenge of performing while transforming, Australia needs ambidextrous leaders who can balance five key paradoxes: 

1. The transformer and the operator: balancing innovation with operational efficiency.
2. The experimenter and the implementer: encouraging experimentation while ensuring practical implementation.
3. The networker and the administrator: building networks while maintaining administrative order.
4. The coach and the conductor: coaching teams while directing overall strategy.
5. The explorer and the regenerator: exploring new opportunities and regenerating existing systems.

Only 15% of leaders can manage all five paradoxes, according to IMD’s research, making these skills rare and valuable. 

Australia’s rise in the IMD World Competitiveness Ranking highlights our strengths. By focusing on clean energy, productivity, and social inclusion, and fostering innovative leadership, Australia can improve its global competitiveness and aim for the top 10.