Dynamic Business: Reform the key to reimagining our future

Mike Horne, CEO of Deloitte. Photo / Supplied

The scale and pace of transformation at a global level around people, technology, customers and social licence — along with a wide-ranging set of Government-led reforms can help Aotearoa New Zealand unlock productivity and drive innovation.

The impacts of Covid-19 have undoubtedly accelerated digital transformation, and generational shifts and thrown into sharp relief the changing needs of the workforce and the required skillsets. These changes have encouraged businesses to invest in technology, AI, and to upskill employees to create downstream efficiencies and ultimately deliver greater productivity and wage increases.

The organisations that made these investments early are now seeing a return on their investment.
Those at the forefront understand that by reimagining their businesses they are setting up for long-term growth and success and committing to operate in a world with new societal demands and expectations.

Defining and embedding purpose within an organisation is now essential. People want to work where they see values they resonate with — this is crucial for both attracting and retaining talent. Businesses need to choose paths that will ensure long-term sustainability.

Access to talent is an issue that was exacerbated by Covid-19. There is no hiding from the fact closed borders have impacted the ability to get people with the skillsets required to drive productivity and broaden the depth of specialist knowledge held in the country.

And when global borders re-open it is not unreasonable to think we may see another brain drain.

However, there is a huge opportunity within this. We need to build science, technology, engineering, and mathematics (Stem) capabilities within the workforce, not just to strengthen individual businesses or industries, but for Aotearoa as a whole. We need to rethink how people can work to their strengths, how they work, and consider that with greater flexibility to work virtually these days there is greater choice for where people wish to deploy their skills. We need to ensure New Zealand remains an enticing place to work, to again attract skilled people from overseas to complement the great talent we already have.

There has also been a shift around global supply chains. We're seeing the need for businesses to be less reliant on global supply chains and the importance of strong infrastructure has been amplified.

After all, if the infrastructure isn't strong, then how can a business be expected to operate and deliver?

But it goes deeper than just security of supply. Risk assessments highlight the need to ensure more sustainable suppliers to help mitigate the impact of climate-related risks. This isn't a case of purchasing carbon credits but ensuring a clear understanding of climate risk, transparency of operations and supply chains, and open and honest ESG reporting.

This is also being championed by the Task Force on Climate-Related Financial Disclosures. It is only by authentically addressing these matters can a truly resilient future be ensured.

The companies featured in the 2021 Top 200 understand this watershed moment when it comes to setting the direction towards a better future. They have made commitments to address climate change and transform relationships with technology while keeping people as their number one priority.

It's great to see the number of fresh perspectives being brought to the table and the bold strides being taken to make a positive impact. The future is going to look different but, in many ways, better, with our most successful businesses leading the way for change.

• Mike Horne is CEO of Deloitte