The ‘beauty’ of effective leadership
KPMG in 3-yr leadership development programme with Business School.
Of all the things the word “beautiful” can be attached to, perhaps the concept of leadership is one of the least likely.
But that’s how KPMG New Zealand’s executive chair, Matt Prichard, describes the company’s successful focus on leadership development after seven KPMG partners attended an executive leadership course with the University of Auckland Business School – a precursor to a three-year programme which will now include the rest of KPMG’s 105 partners.
Prichard says there has been enormous change in leadership styles over the years – creating the need for constant review and readjustment in the fastest-changing world and business environment ever. When all the new values and characteristics of leadership are aligned and applied in this new environment, “that’s a beautiful thing”, he says.
The stimulus for putting people through the Business School course was not just about making sure the global professional services company is keeping up with the times – and leading the way for its clients. It was also about developing “the best talent” and making sure that talent felt they were growing and thriving.
“We are a people business – we don’t make things, lend money or fly you somewhere,” he says. “When we talk about investment, it is almost always in our people.”
Business and social environments had changed so fast and so deeply in recent years that it has been characterised as BANI – Brittle, Anxious, Non-Linear and Incomprehensible. Leaders had to be able to lead within the context of the difficulty of grasping and controlling the world around them.
“It’s nothing like it used to be 20, 10 or even five years ago,” he says. “In a professional services firm, if you made partner back then, you might think ‘I know everything I need to know’ and that would see you right for the next 20 years. Now that way of thinking has gone.
“These days, leadership skills are changing even faster than ‘new knowledge’ skills [that people require]. Leadership used to be much more about management skills and delivering efficiently – efficient management of the business.
“Those things are now largely taken for granted or replaced by automation. What’s needed now is a lifelong learning system, not just something ad hoc. That’s why we began working with the Business School and I have to say we are delighted with the results.”
Internally, KPMG has launched “a people promise” with three main value propositions: 1) every KPMG person needed to feel they were doing “work that matters” 2) that they are “thriving and growing” and 3) “that they each belong here”.
“But if you are a leader of a big team, that is really hard to deliver,” Prichard says. “You have to encompass not only senior staff but brand new juniors and fill them with a sense of why KPMG is doing that and the purpose of our work – compared to past days when you joined ‘the factory’ and were sent away to complete your task.
“Thirty years ago, the dominant expression was: be grateful, you’re working at one of the Big Four, you’re well paid, so head down and bum up and go do your job.”
“Now, if you want to attract and retain the best talent, you have to show them they are thriving and growing at a faster pace.”
Leaders also had to recognise and grow other leaders within the business – not just the outgoing sort who could happily present to an audience in the Town Hall but also those quieter and more introverted who have different, but just as valid, ideas.
Leaders need two key characteristics among others, he says, empathy and resilience – the first not just empathising with others but also having the ability to see how others see you and to adjust when needed. Resilience was all about being the person able to navigate all the “brittle and anxious” scenarios and move the team and company forward.
“That leader may not have all the answers but if he or she can avoid things jamming up and move things forward, well, that’s a beautiful thing to see in a leader.”
Already KPMG had noticed the difference with those who’d taken part in the Business School programme: “I’ve just come from a board meeting where we discussed those people and how they’d grown over the last 12 months,” says Prichard.
“Some were just coming into a more senior position or were relatively new to senior leadership roles with higher responsibilities. We can see they’ve realised they have the opportunity to reflect on themselves and their leadership and communications styles and manage themselves so they are creating a better team and are giving people thinking room and space for people to approach them.
“None of these things are new but they are all really difficult to do, especially if you are continually distracted by the everyday tasks at hand. We have seen, since the Business School programme, better people engagement scores, better culture scores and better financial results. It’s exciting.”
Professor Susan Watson, Dean of Business and Economics, The University of Auckland, says the rapidly changing landscape requires organisations like KPMG to innovate how they work, lead, and contribute.
“The success of an organisation depends on its people, models and structures, and the societal context in which it operates. KPMG’s commitment to developing their leaders is impressive as they play a crucial role in fostering the well-being of New Zealand, from the economy to the communities they serve.
“Our collaboration with KPMG focuses on bringing about adaptive change, solving societal challenges through innovation, collaboration, effective and ethical leadership, and governance,” she says.” At the University of Auckland Business School, we are dedicated to collaborating and creating value from ideas that extend beyond financial returns to encompass social and environmental value.
“Through this, our people, teaching, and research contribute to shaping the future of individuals and organisations for the betterment of our communities, Aotearoa New Zealand and the world.”
14 March 2023
