The Reserve Bank has just reminded us productivity is now well below the OECD average, and that aside from policy settings the private sector really needs to lift its game. Step ups range from adoption of tech and innovation through to reinvesting and management capability.
This year’s challenging operating context for Kiwi businesses raises some searching questions — what style of leadership should New Zealand directors, chief executives and managers adopt in 2025?
Should they switch to Trump’s authoritarian, coercive style? Pump Zuckerberg’s “masculine energy”? Adopt Jacinda Ardern’s approach as an empathetic leader? Or hold steady or double down on a more inclusive, equitable approach?
In past decades, the role and requirements of the chief executive have changed. The chief executive’s job has shifted from being widget-driven to more people-driven.
The range of styles of successful chief executives has broadened, and different contexts call for different styles. Chief executives today must be adaptive due to more complexity, transparency, tech and AI, demographics, and remote work.
I’m on a mission to diversify the chief executive talent pool. Thinking differently and applying a range of different life experiences increases your chances of business success.
The more people from diverse walks of life we can inspire to aspire to senior leadership, the better for New Zealand.
And although different industries and organisations require different specialist skills, in my opinion there are three key attributes for a successful chief executive, all of which are attainable by future leaders.
Here is the chief executive formula for 2025:
Inspirer
This is about inspiring your people around a vision. The key to all great breakthroughs, inspirational leadership can unleash talent and create momentum in the right direction. Top talent wants to be on board, people are engaged, and innovation can flourish. Inspiration, literally, means ‘to breathe into’.
Breathing innovation into business is how we catalyse the Government’s plan to power growth in order to unlock New Zealand’s potential. Inspiration fuelled by Kiwis who split the atom, pioneered aviation, changed filmmaking, revolutionised accounting, turned waste gas into ethanol, sent rockets into space and more.
Real growth demands next-level innovation.
Realist
In business, once inspiration is in motion, a chief executive still has to merge dreams with reality to ensure plans have a realistic chance of success. Leadership styles in this category may be more decisive, which can be good in high pressure situations and when you need to make the unpopular but necessary calls.
Occasionally this means administering a cold dose of realism to the wildest dreams.
It may sound counter-intuitive, but it’s an important intervention to ensure innovation can succeed before the money runs out.
For example, as chief executive of an investment management company, I put a stop to an app our customer and growth team loved because the rest of our technology was too far behind.
I hated pouring cold water on innovation but had to get real about weighing up short-term customer gains with long-term technological debt.
Listener
When you have the right people aligned with the vision, instead of telling them what to do, find out what they think needs to be done.
Stand back and allow your team to collaborate and drive productivity and growth.
Active listening is a hidden growth engine that builds morale, develops relationships, earns respect, uncovers insights and improves the chief executive’s decision-making. At its most profound, active listening enables you to notice what is being left unsaid and interpret what that means, too.
As management ace Peter Drucker said: “The most important thing in communication is hearing what isn’t said.”
Diversity of people, experiences and approaches is at the centre of today’s leadership formula.
You will encounter the inspirer, the realist and the listener in people from all walks of life and everywhere from the office to university to farm to stadium to nursery.
It’s everyone’s job to urge Kiwis who have these qualities to step up and lead — regardless of their background. New Zealand’s productivity, growth and wellbeing depend on it.
