Here, in her own words, is what Minter Ellison CEO Annette Kimmitt sees ahead in 2020.
Read more from the 2019 CEO Survey.
How is your company affected by low-interest rates and what is needed to boost the economy?
While a low-interest-rate environment means money is relatively cheap, it is symptomatic of a bigger problem – weak demand. While there has been talk about more infrastructure building and potentially qualitative easing, structural economic reforms are needed to restore confidence to lift demand and foster business investment. When businesses invest, they drive innovation and lift productivity that can boost the economy. For example, innovation investment in new programs, machinery, technology or retraining enables business to lift productivity, develop new products or services, employ more people and potentially export into new markets. Many industries are facing the need for reform and restructuring brought on by technological, economic, demographic or ecological changes. For some, the current rules and regulations are appropriate; while for other industries, the government also needs to act to enable much-needed reforms to occur. Energy, technology, telecoms, healthcare, financial services, construction are standout industries where some of the current rules and regulations have led to a loss of either business or consumer confidence. Regulatory change and reform could restore confidence and promote business investment.
What is the impact of government regulations on your company, including those applying to the financial sector?
Regulation has impacted our clients as well as our own operations. We’ve seen new compliance, reporting and enforcement programs from several regulators over the past 12 months – these have spanned governance and culture through to more specific requirements such as foreign influence transparency. The planned introduction of the financial crime legislation to professional services firms (anti-money laundering and counter-terrorist financing legislation) will likely have an impact on our business. We’re continuing to invest in new technology to help us meet our compliance requirements.
What percentage of company revenues are spent on research and development, and how is your company using technology to improve performance?
MinterEllison has brought its focus on digital efficiency and investment in technology to the forefront of its business strategy. We’ve created a robust digital transformation roadmap that will see us roll out significant technologies in the next 24 to 36 months. Our investment in technology and innovation will free up our lawyers to focus on more complex, value-adding tasks. We’re focused on building T-shaped lawyers – the next generation of our graduates and leaders will need more than just legal knowledge. They’ll come from a range of disciplines and will need to understand how to navigate and leverage a technology-driven ecosystem. We’re convinced that the very best talent of the future will be Millennials, who are technically brilliant young professionals, with wide-range skillsets and backgrounds. In other words, we’re cultivating “digital dexterity”.
What are the three major policy issues facing the country and what should be done about them?
● Future skills development – the recent Program for International Student Assessment results are worrying; universities need to deliver well-rounded graduates who can then develop into tomorrow’s business leaders. To do this, universities need to have systems in place to deliver school graduates with high levels of literacy, numeracy and digital skills. The latest PISA results highlight that we should be looking at similar successful countries, such as Canada, to understand some of our shortcomings.
● Future-proofing the economy while tackling climate change – we’re seeing a tipping point in corporate Australia’s approach to climate risks. The transition to a lower-carbon economy must ensure it delivers meaningful jobs and international competitiveness. This is reliant on us having a strong economy, confidence in the science and technology sectors, a coordinated approach and broader economic reforms. This will enable money flows into innovation, new technologies and alternative energy sources.
● Delivering appropriate infrastructure for a growing future – Infrastructure Australia suggests that $200bn needs to be spent every five years on infrastructure projects just to keep pace with population and economic demands. Our future cities and regional areas need appropriate transport connections, access to utilities, schools, and health services to keep pace with our quality of life, trade and productivity expectations. We need to have a long-term view of our future infrastructure needs and pipeline supply, which requires a coordinated national approach using innovative processes to deliver what we need on time and on cost.
What are the major impediments to long-term growth facing your company and what can or is being done about them?
● Competitive disruption – new technologies such as artificial intelligence and other innovations will continue to emerge at ever-accelerating rates. They will disrupt how we create and deliver value, and we manage our business. Industries are converging, and our clients, who are also staring directly into these challenges, are looking to their trusted advisers to help them unlock the opportunities from these disruptions and solve their increasingly complex problems – technology plays a big part in this.
● Access to talent – we need to continue to provide a work environment focused on diversity and inclusion, wellbeing and agility to attract and retain great talent, reduce staff absences and improve labour productivity. We will be very interested to see where the government takes the proposed free trade agreement with the UK, and what opportunities arise in terms of accessing the deep UK legal talent pool, and what threats arise from Australian talent being poached by the UK.
● Regulatory uncertainty – will impact the opportunity for the business community to invest with confidence. Regulatory reforms need to occur quickly and efficiently, with the right level of consultation.
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Every year The Australian’s John Durie asks some of the biggest names in Australian business five key questions about what’s coming in the year ahead.