2020 CEO Survey: Paul Jenkins, Ashurst

COVID-19 will reinforce a change in what are seen as the most effective leadership styles, says Ashurst chief Paul Jenkins.

What are the three enduring lessons or changes to flow from COVID-19?

Not surprisingly, COVID-19 has brought health and wellbeing, including mental health, to the front of mind in all organisations. As the pandemic unfolded across each of our 28 offices first in Asia, then Continental Europe, Australia, UK and the rest of the world, this was our number one priority. It informed the decisions we made about how we delivered services to our clients, managed working from home, and office openings and closures. This enhanced focus on health and wellbeing, including mental health, and more broadly how companies treat their people, will endure.

There has been a shift in emphasis to how we work, rather than where we work. While most organisations will continue to have significant offices, the way we connect and our dependency on the office has permanently changed. The office has transformed from being the centre of work into a hub for collaboration and interaction between staff and clients.

COVID-19 will reinforce a change seen in recent years in what are the most effective leadership styles. In times of crisis and disruption, people don’t want platitudes, they want honest dialogue, regular communication and transparent decisions. I was conscious of not sugar-coating the risks posed by the pandemic, and instead made sure we kept our people informed about what we were doing and why. No-one expects leaders to have all the answers – the more important thing is to be open and honest. We’ve seen that people respect candour and courage from their leaders.

How would you rate the shape of the Australian economy as we head into the new year?

We are seeing an increasing level of business confidence across our Australian client base, but with an acknowledgment that there is still a difficult and uncertain period ahead. The challenges will be greatest in those parts of the economy relying on foreign students, international tourism and the continued growth in immigration – for example, higher education, and parts of the tourism and construction sectors.

The Reserve Bank recently said that the Australian economy has turned the corner and I would agree. Even compared to where I thought we would be a few months ago, we are seeing the economy spring-back. I am cautiously optimistic about the year ahead. On a relative basis, we have done remarkably well.

What three reforms are needed to sustainably grow the economy?

Continue to progress tax reform at both federal and state levels. A lower company tax rate together with reforms to simplify corporate regulation would encourage investment and create jobs, helping to fuel the post-COVID-19 economic recovery. It is good to see that the NSW government has commenced a consultation process to overhaul state stamp duty and property taxes. Measures which can bring greater efficiency and underpin property markets are to be welcomed. Hopefully other states will also consider reform, with a view to a harmonised and simpler system, which will benefit households and business.

Settle federal and state policy frameworks to address climate change and energy production. This would deliver investor certainty and allow Australia to take advantage of the energy transition that is underway globally. We should be aiming to ensure power generation and supply that is affordable, reliable and sustainable. This will in turn spur growth across the economy.

Drive investment through improved R&D tax incentives and regulatory reforms to assist with digital transformation. We have already seen the benefits of temporary measures such as the use of electronic signatures and this should spark further changes to bring corporate regulation into line with the reality of how many businesses now operate. The post-COVID-19 era is an opportune time to investigate measures aimed at encouraging innovation and fostering our growing start-up community in Australia.

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

As an international law firm which is a single global partnership, I am consistently seeing opportunities in three areas of sector strength for the firm:

Infrastructure: With fiscal stimulus packages seen in most countries, governments are announcing new infrastructure projects, or bringing forward the start of existing projects.

Digital Economy: Given the digital acceleration in 2020, we are seeing growth in the fintech, payment systems and digital infrastructure areas.

Energy Transition: With the increased focus on sustainability and emission targets, our clients are looking for opportunities to invest in low, zero or negative emission technologies.

These sectors are creating opportunities across the firm, from M&A to finance, disputes, competition, regulatory and employment.

We have also recently started a consulting arm of the firm in Australia, providing risk and board advisory services. This has grown faster than expected and we are likely to expand into other markets during 2021.

What impact will digital transformation have on your company?

Digital transformation will continue to change the way we deliver our legal services to clients. We are fortunate to have started our digital transformation journey a number of years ago with one of our five global business units – Ashurst Advance – focusing solely on legal technology, alternative resourcing and legal process improvement. Therefore our lawyers are familiar with the benefits of leveraging technology to more efficiently provide legal services, including through document automation and the use of AI and analytics in large transactions, regulatory investigations and disputes.

Not surprisingly, this business unit has seen the highest level of revenue growth during 2020, and I expect that to continue in 2021.

How would you rate business, state and federal government performance this year?

Nearly every day I am reminded by clients or colleagues from around the world as to how well Australia has done.

Something I realised early in the year in my own leadership role is that there was no “road map” for this pandemic — what is needed is consultation with relevant experts, clear communication and decisive action.

While there have been some inevitable missteps, we should be very proud of how we have fared in this country.