The leadership shift you didn’t see coming: How ANZ is leading the way

• Keith Johnston discusses the shift from top-down to collaborative leadership in ANZ, emphasizing the value of collective intelligence and adaptability.
• ANZ's egalitarian, agile leadership culture is helping shape global leadership practices, focusing on transparency, collaboration, and human-centered approaches.
• Johnston highlights the importance of adapting leadership styles to fit diverse cultural contexts, particularly in the Asia-Pacific region, for effective global leadership.

In an increasingly interconnected world, leadership is evolving. The changing landscape of work, technology, and global collaboration demands a fresh approach to how leaders navigate complex challenges. One region that has significantly influenced the development of modern leadership practices is Australia and New Zealand (ANZ). In an exclusive conversation with Keith Johnston, Director of Cultivating Leadership by People Matters, we explore the ANZ community's unique role in shaping global leadership insights and contributing to cross-border programs and initiatives.

Johnston, a seasoned expert in leadership development, explains that the nature of leadership has undergone a radical transformation over the last decade. This transformation has been driven by the complexities of the modern world, where leaders no longer have all the answers and must rely on a wider range of perspectives to solve problems. As he puts it, the leadership process is now increasingly participative.

The evolution of leadership 

Over the past ten years, leadership has shifted from a top-down, authoritative approach to one that is collaborative and inclusive. This evolution is largely due to the growing complexity of the world, where leaders face unknowns and uncertainties on a scale never seen before. According to Johnston, the challenge for leaders today is navigating an environment where much of the future is unknowable, requiring them to be agile, adaptable, and receptive to new ideas.

Johnston references economist John Kay's perspective in his book The Corporation in the 21st Century, where Kay suggests that the only way for leaders to address the radical uncertainty they face is by assembling the collective knowledge of many individuals and developing what he calls “collective intelligence.” This cooperative approach demands that leaders work together with their teams, drawing on diverse perspectives and leveraging the collective wisdom of those around them.

As Johnston explains, this type of leadership is not only necessary but also deeply rewarding. It requires leaders to be skilled at engaging others, asking the right questions, listening attentively, and using disagreement as a tool for generating new ideas. It's a shift towards collaboration, where leaders actively involve their teams in key decisions and challenges. The goal is to help people see more of the system they are working within, creating a sense of shared purpose and collective responsibility.

Leadership in the ANZ region: A unique advantage

The leadership practices in the ANZ region are distinctive and have earned global recognition. Johnston points to several advantages that leaders in Australia and New Zealand benefit from, which contribute to their ability to influence global leadership conversations.

One of the key advantages, Johnston argues, is the egalitarian nature of both Australian and New Zealand cultures. These countries have relatively flat organizational structures, which foster a sense of equality among leaders and their teams. This egalitarian mindset makes it easier for leaders to be transparent, collaborative, and approachable, qualities that are highly valued in today’s leadership landscape.

Additionally, the smaller scale of businesses in the region allows for greater agility. Leaders in ANZ have the flexibility to make quick decisions, experiment with new ideas, and adapt to changes in the market with relative ease. This agility is crucial in a world where change happens rapidly, and organizations must be able to pivot and evolve quickly.

Johnston also notes that business processes in ANZ are often straightforward and reliable, providing a stable foundation for leaders to build upon. These characteristics, combined with the region’s cultural values, enable ANZ leaders to foster a leadership style that is practical, human-centered, and responsive to the needs of their teams and organizations.

The challenge of exporting leadership insights across borders

While ANZ leadership practices are widely praised, Johnston acknowledges that exporting these insights to other parts of the world can be challenging. Specifically, there are regions where cultural and organizational structures differ significantly, and leadership styles must be adapted accordingly.

Johnston highlights the diversity of the Asia-Pacific (APAC) region as a prime example of this challenge. APAC is home to a wide range of cultures, each with its own unique approach to leadership. Leaders in this region must be highly agile and able to navigate different cultural contexts in order to succeed. The diversity of societies and leadership practices across APAC is greater than anywhere else in the world, and it presents a unique challenge for leaders who aim to apply one leadership style across all of these varied environments.

Rather than attempting to export a specific leadership style, Johnston suggests that the focus should be on learning from different contexts and adapting leadership practices to fit the needs of each situation. He explains that leadership is not about imposing a one-size-fits-all approach but about being attuned to local cultures and understanding what leadership practices are possible in those settings.

"Leadership is about learning from different contexts and finding out what is possible in those settings," Johnston says. "It’s not about importing or exporting leadership styles but rather about being adaptable and attuned to culture."

This nuanced understanding of leadership in a global context is a critical aspect of the ANZ approach. Leaders in the region are not only taught to collaborate and engage with others but to understand and respect the diverse cultural landscapes in which they operate.

Responding to global challenges

In the face of global challenges such as economic uncertainty, environmental sustainability, and geopolitical instability, leaders today are forced to rethink how they approach decision-making. Johnston observes that leaders across the world are grappling with high levels of uncertainty, as political upheaval, climate change, and the impact of emerging technologies like artificial intelligence (AI) create new complexities.

Johnston quotes technology analyst Benedict Evans, who suggests that when it comes to AI, “everything is open. We don’t know the answers. We’re still working out the questions.” This sentiment, according to Johnston, applies not just to AI but to the broader landscape of global challenges that leaders are facing today.

In light of these uncertainties, Johnston sees leaders becoming more collaborative and open to new ideas. In particular, climate change has become a key issue for leaders, forcing them to balance sustainability with the need for short-term economic growth. Similarly, geopolitical instability and technological advances have prompted leaders to consider how they can make decisions in an environment where the outcomes are far from predictable.

Johnston believes that in this environment, the cooperative leadership model that ANZ leaders excel at is more important than ever. The future of leadership, he asserts, lies in collaboration and collective intelligence—working together across borders and industries to address the challenges of the modern world.

The future of cross-border leadership development

Looking ahead, Johnston believes that the future of leadership development will be increasingly global and collaborative. As organizations and leaders face complex, cross-border challenges, there will be a growing need for leadership development programs that bring together diverse perspectives and foster a culture of cooperation.

Johnston argues that the key to successful leadership in the future will be the ability to balance universal human values with cultural-specific insights. "Leadership in complexity needs to be more cooperative and participative," he says. "There are ways we are together as humans that are universal, but there are also ways that are culturally shaped."

In this context, cross-border leadership development initiatives will become more essential than ever. Leaders must be prepared to engage with colleagues from diverse backgrounds, learning from one another and adapting their leadership practices to fit local and global contexts.

Innovative leadership models for global challenges

As organizations face urgent global challenges such as climate change, digital transformation, and the future of work, Johnston sees a need for leadership models that help leaders thrive in complexity. These models, which originated in New Zealand and spread across Australia and beyond, have proven effective in helping leaders make better decisions, take multiple perspectives, and experiment with new ideas.

Johnston points to the practical tools developed by Cultivating Leadership, which help leaders understand their challenges in systemic ways. These tools encourage leaders to ask different kinds of questions, take a step back and view problems from multiple angles, and experiment with new approaches to leadership. These tools can be replicated and scaled in different parts of the world, offering a model for addressing some of the most pressing issues of our time.

"It takes time to build these habits, but the starting moves are immediately useful," Johnston explains. By fostering a mindset of collaboration, experimentation, and systemic thinking, leaders can more effectively navigate the complexities of the modern world.