2020 CEO Survey: Rohan Mead, Australian Unity

Australia must learn how to engage geo-strategically, with a level of adroitness never before needed, says Australian Unity chief Rohan Mead.

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

We have seen what is probably a generational imprint on our self-perception as a nation. We have been reminded that we are a medium sized trading economy, highly dependent on the international systems that support the relatively free flow of information, people, goods and services. We were shocked at how suddenly and completely some of these flows were cut off. We were uncomfortably reminded that we are not and cannot be geo-strategic bystanders. We saw again positive aspects of our national character: resilience, can do attitudes and adaptability. While at the same time we were reminded of the extraordinary shield from adversity our relative national wealth provided, as it was deployed to bridge economic shocks and discontinuities.

Additionally, the barriers to digital business have been lowered or removed in certain sectors and will not return. We should therefore see valuable exploration of this disruptive force in healthcare and other previously resistant sectors.

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

Relative to other developed, industrial economies, we are in very sound shape. In more absolute terms, we clearly have large risks to manage in the resources, education and tourism sectors. At the same time, we need to learn how to engage geo-strategically, with a level of adroitness never before needed.

What three reforms are needed to sustainably grow the economy?

One potentially adverse side-effect of the success of the emergency economic interventions is that they have dulled the sense in government of the urgency and scope of desirable reforms to support future prosperity. Broad areas with substantial potential impact include:

1. Workforce planning: availability and capability. Human services will demand hundreds of thousands of net new workers over the next decade and our VET sector must be addressed to achieve effectiveness to support high value industries, such as advanced manufacturing.

2. Reform of the regulatory burden and complexity. This is not a simplistic plea for deregulation but rather a plea to pursue material simplification of regulatory requirements. Large benefits for the nation and employment could be achieved, particularly by positive and intelligent reform in industrial relations.

3. Micro-economic reform of human services. The extraordinary growth in need in the human services sectors continued unabated through COVID-19, while social and demographic factors will see this ongoing. Long-recommended reforms, which support consumer empowerment and which demand innovation from large sectors such as healthcare, should be pursued as a priority. The twin benefits of more effective outlays by government along with improved consumer amenity would yield very significant improvements in financial and service sustainability.

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

Very attractive growth opportunities present for Australian Unity in the areas of:

1. Social Infrastructure — the provision of assets and the facilitation of fixed capital formation in the shape of hospitals, other healthcare facilities, aged care facilities, medical research facilities and specialist housing, including for disability and key workers.

2. Human Services — the provision of care services to the aged and vulnerable, allied health services, and support services, in both residential facilities as well as in-home.

3. Supporting Economic Empowerment — the manufacture and provision of financial products and services that support a dignified retirement.

What impact will digital transformation have on your company?

The fact that COVID-19 accelerated aspects of digital transformation will have ongoing positive effects on the efficiency, flexibility and adaptability of our own operations. But by far the greatest potential for our operations and customers, will be realised in the extent that digital transformation starts to disrupt the glacial pace at which business systems in, say, healthcare evolve. More consumer-responsive and efficient digital processes may have very significant consequences for the effectiveness of the sector.

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

There was definitely light and shade in the quality of responses to COVID-19 by business, state and federal governments. Communications were poor in the early days and the co-ordination of resources was less than effective. This situation improved rapidly in most areas but sadly we did not manage to protect the in-care, frail aged community in Victoria to the extent we were able to in other jurisdictions.

On balance and nationally, with a few very sad exceptions, I think you would have to rate the public response of business and governments highly and revealing of great, shared goodwill.