2019 CEO Survey: Lisa O’Brien, The Smith Family

Dr Lisa O'Brien, chief executive, The Smith Family.

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.

Here, in her own words, is what The Smith Family CEO Lisa O’Brien 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?

As Australia’s largest education charity, we are highly dependent on public donations. This is discretionary expenditure for most Australians. When times are tough, as a charity, we feel the pinch. Low-interest rates mean less return on investments and savings for our supporters and can flow on to diminished giving levels for the charity sector. This presents a significant risk to our organisation and means fewer vulnerable children can access our potentially life-changing educational support. We see the impact of poverty first hand every day. Investing effectively in education is key to equipping all young Australians with the skills needed to get the most out of their education, join the workforce and contribute in a meaningful way to our future economy.

What is the impact of government regulations on your company, including those applying to the financial sector?

The Smith Family complies with government regulations, including those relating to the Australian Charities and Not-for-profits Commission, Australian Securities and Investments Commission and the Australian Tax Office. Charities operate in a complex regulatory matrix with requirements and obligations at the State, Territory and Commonwealth level. This is inefficient for a national charity working across the country and is at odds with the expectation that the ACNC might be a one-stop-shop and deliver efficiencies in administration and compliance.

What percentage of company revenues are spent on research and development, and how is your company using technology to improve performance?

We spend approximately 1 per cent on research covering the design of new programs and the evaluation of existing programs. We are investing in data and digital to streamline our processes and to better focus on the needs of both our donors and the families we support with our programs.

What are the three major policy issues facing the country and what should be done about them?

The latest Program for International Student Assessment results are of real concern for our nation.

For the first time, Australia failed to exceed the OECD average in maths, and the nation’s results in reading and science have declined. We need to move the conversation away from about the amount of funding and target those students needing support and invest in educational initiatives and programs for them that are shown to be effective.

What are the major impediments to long-term growth facing your company and what can or is being done about them?

Our ability to fund investments in systems and technology to amplify and accelerate our mission is reliant on the public’s continued support for our work. However, the public also expects that all or the majority of the funds they give must go to the programs we deliver. Educating the public about this need to capacity build and developing partnerships with foundations and corporate partners willing to provide infrastructure-related funding will be critical for our continued growth.