2020 CEO Survey: Patrick Houlihan, DuluxGroup

Prioritising ‘what really matters’ has made us more agile and adaptable to rapid change, says Patrick Houlihan of DuluxGroup.

DuluxGroup managing director Patrick Houlihan. Picture: AAP Image

What are the three enduring lessons or changes to flow from COVID?

•Look after your people first, this is what underpins the strength and resilience of our business – COVID reinforced our long-held practice and belief in this.

•Prioritising ‘what really matters’ has made us more agile and adaptable to rapid change; we have found newer, smarter ways of working.

•Investing in strong relationships & partnerships over the long term – with customers, suppliers, government & the community is critical – it’s fundamental in terms of building contingency into supply chain and business continuity.

How would you rate the shape of the Australian economy as we head into the New Year?

Indicators are generally positive for the domestic economy, we are seeing an uptick in consumer confidence and cautious optimism on a stronger (than previously forecast) recovery in GDP. State & Federal spending on infrastructure and other economic stimulus measures should start to flow through, hopefully offsetting the ending of temporary measures such as JobKeeper and ‘HomeBuilder’. While the Global outlook hinges on the timing of a vaccine, Australia is in much better shape than most, because of our efforts to control the virus early and safely open up the economy. The unknown element is the extent to which global economic and trade factors will impact domestic recovery.

What three reforms are needed to sustainably grow the economy?

The continuation of the national cabinet (and subsets thereof), which is a better model for Federal-State co-operation and co-ordination than COAG.

With monetary policy levers somewhat limited, fiscal stimulus measures will remain important over the near to medium term as a foundation for sustained growth.

Beyond that, maintain focus on the fundamentals of increasing Australia’s competitiveness and provide the policy certainty that encourages business to invest over the long term: strong R&D and innovation capability, workable energy policy (balancing cost, reliability and transition to renewables), tax competitiveness, labour productivity, removing red tape, a skilled workforce and a return to normal levels of net migration once it is safe and practicable.

What are the three best growth opportunities for your company in 2021?

Continuing to grow our market leading Dulux, Selleys and other businesses in Australia & New Zealand through ongoing investment in the fundamentals of consumer-driven marketing & engagement, customer service and product & service innovation.

Working in conjunction with Nippon Paint (our new parent company) to extend Selleys’ growth into Asia.

Helping Nippon Paint explore expansion into other western markets, building off DuluxGroup’s existing business in the UK and Europe.

What impact will digital transformation have on your company?

Digital is an increasingly important part of our growth strategy and is integrated into our thinking across all areas. It allows us to know our consumers better, reach them in smarter ways, and makes it easier for them to know our products and services. It’s also playing a critical role in supply chain efficiency, procurement, customer service and engagement with our own employees. COVID-19 has accelerated this journey, which has been a positive.

How would you rate business, State and Federal Government performance this year?

The reality is that Australia is in an enviable position compared with many other countries, and there is a growing return of optimism and confidence. Although operating a national business in our state-based federation structure did present challenges and frustrations at times, overall our governments have done a very good job of protecting lives and livelihoods in the face of a lot of ‘unknowns’. We also saw a greater, and very welcome, appreciation for the importance of domestic manufacturing and supply chain capability to mitigate against the sovereign risk of global supply chains in essential areas and where we have natural advantage. Businesses, including those in some of the most affected sectors, did a remarkable job to quickly pivot and find new ways of operating, much of this will be enduring.