2020 CEO Survey: Tony Johnson, Ernst & Young

The seemingly impossible was achieved, often in short time, during COVID-19, says EY Oceania chief Tony Johnson.

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

A great set of embedded values and a human centred response that drive behaviours and decisions are the keys to succeeding through uncertainty. There remains real value in personal connection – and that cannot be over-estimated. Regular, authentic and empathetic communication and connection with people is critical to managing any crisis, but even more important when the event continues over a long period.

We are amazingly resilient, adaptable and innovative when we need to be. The seemingly impossible was achieved, often in short time, during COVID-19. We can’t forget that.

Trust and productivity are not just the domain of an office — they can exist and be enhanced while working remotely and without visibility.

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

The economy is in better shape than expected and performing relatively well compared to most advanced economies. That is not to say there has not been a significant economic fallout from the COVID-19 crisis but the virus has been relatively well contained outside of Victoria and the initial response by policymakers to cushion the blow has been effective. But the true impact can only be assessed over the next three to five years and beyond.

There are still significant headwinds. Policy support is set to taper and there remains a question-mark over whether private domestic demand has recovered enough to pick up the baton of growth. In fact, the payroll data points to some faltering of economic recovery which we need to monitor closely. Closed borders and a global recession remain a challenge, and the true extent of economic scarring has yet to be revealed.

What three reforms are needed to sustainably grow the economy?

An effective reform agenda is rarely two or three specific reforms, but rather a comprehensive set of reforms. In Australia’s case, productivity enhancing reform will be critical to sustainably grow the economy and recover from the COVID-19 recession. In essence, productivity enhancing reforms raise the speed limit of the economy, which means more Australians back into work, and are how you address the debt burden. The list is familiar to us all: simplify industrial relations, reduce red tape and improve regulatory processes, create a more efficient tax system, and reform to address the skills gap and transformation of work. The question is what is achievable politically.

If I had to put three at the top of my list: skills, as that is so critical for young Australians; red tape and regulation, as there are elements that are relatively easy to get done; and industrial relations, to capitalise on the spirit that we saw early on the crisis. Tax is so important but more complex in a number of ways.

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

1. Strategy consulting

2. Business transformation enabled by technology

3. Climate change and sustainability consulting

What impact will digital transformation have on your company?

Digital transformation has already had an significant impact on our business, our people, our clients and our suppliers and we are only at the beginning. Every day at EY we look for ways to use technology to improve the work we do and how we do it, with the ultimate goal of building a better working world. Digital transformation was well underway before COVID-19, but COVID-19 has accelerated the transformation and the impact on our daily working lives, including where, when and how we work. We are helping clients to respond, transform and thrive from digital disruption.

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

To say that COVID-19’s impact on business has been profound would be a huge understatement. Government support has been instrumental in cushioning the blow for Australia and is to be commended. Businesses and governments across the country have had to work together and at pace to save jobs and save lives. Not everything has gone perfectly, but sometimes our leaders have had to make quick decisions for the greater good, rather than the lengthier process of striving for perfection. While this has led to some mistakes, the importance of authenticity in acknowledging these mistakes and fixing them has been a learning from the pandemic.