Productivity – Led by the Power of Private Enterprise
Article from the AICC(WA) Annual Productivity Event featuring Ms Jennifer Westacott, Chief
Executive, Business Council of Australia hosted at EY, and co-sponsored by Curtin Graduate School of
Business, Curtin University, Metrix Consulting and Microsoft, held on 11 November 2016.
From L to R: Professor Mile' Terziovski, Dean, Curtin Graduate School of Business, Curtin University, Ms Cheryl
Robertson, State Director WA, Microsoft Australia, Ms Julie Beeck, Executive Director, Metrix Consulting, Dr Patricia V
Kailis AM OBE, Founding Director, MG Kailis Group, Professor Lyn Beazley AO, FTSE CIE, Sir Walter Murdoch
Distinguished Professor of Science, Murdoch University, Mr Gordon Cole, Managing Director, G Cole Consulting
Indigenous Entrepreneur & Business Leader and Inaugural Chairperson, Noongar Chamber & Commerce & Industry., Mr
Greg Meyerowitz, Partner, EY and Mr John Cluer, Chief Executive, Australia-Israel Chamber of Commerce (WA)
Increased productivity through innovation is the driving element of Australia’s economic
transformation. The AICC(WA) Annual Productivity event provides WA business leaders the
opportunity to explore and discuss both local and national elements of the productivity agenda.
EY Perth host, Michael Anghie Managing Partner of EY set the scene of the presentation by
recounting a week of change and unpredictability brought by the US election. Noting the
importance of leadership in responding to unforseen shifts in business markets, Mr Anghie
reaffirmed the EY relationship with the AICC both in WA and across Australia, a partnership which
contributes to public debate and helps build resilience. Further inspired by Remembrance Day, Mr
Gordon Cole also extended a Welcome to Whadjuk Nyoongar country and invoked stirring memories
of his grandfather’s service.
On behalf of event sponsor Curtin Graduate School of Business, Professor Mile Terziovski identified
factors and trends that influence productivity, including innovation, flexibility, talent war and climate
change. He linked this to the Curtin mission for Curtin students, staff and graduates to be highly
regarded internationally as ethical and engaged contributors to more inclusive, sustainable and
prosperous communities. Curtin has responded by introducing a Masters of Innovation and
Entrepreneurship with MIT, and has also engaged in Women in MBA scholarships aimed at closing
the gender diversity gap.
Mr Michael Anghie, Managing Partner, Strategic Growth Oceania and Western Region and Asia Pacific Strategic
Growth Leader, EY
Professor Mile' Terziovski, Dean, Curtin Graduate School of Business, Curtin University
“To say we are living in volatile times is an understatement” contended Ms Jennifer Westcott as she
introduced her topic by noting that the delivery of stability, empathy and understanding by business
is more critical than ever. Drawing observations from the US Presidential election she noted that
blame and diminution is unhelpful in understanding what is driving the current unease in many parts
of the population. Alluding to Israel she affirmed the relationship between the Business Council of
Australia (“BCA”) and the AICC, and accorded an accolade to the business culture of Israel which
facilitates new business development. She further noted that peace is delivered through prosperity.
Mr Gordon Cole, Managing Director, G Cole Consulting, Indigenous Entrepreneur & Business Leader and Inaugural
Chairperson, Noongar Chamber & Commerce & Industry.
Australia has confronted below average real wage growth, the goal of owning a home is becoming
less obtainable and people are beginning to distrust the institutions and societal systems that have
delivered stability. The temptation for political leaders is to pursue policy for control and protection
ahead of longer term prospects for employment and growth is of concern to the BCA, which
advocates that the latter cannot be achieved without a strong business community.
Ms Westcott noted that WA is no stranger to growth in China and discussed the geopolitical shift in
Australia’s economic trading partners. “We must deal with a new, and not a temporary, change in
the competitive landscape, and benchmark ourselves against productivity changes in Asian
economies.” She contended that the pace of change in developing countries was often faster than
that experienced within OECD economies which are more traditionally used for comparative
measurement. “Companies are scrambling to reorganise and meet the demands of an empowered
consumer. It is the consumer that will be the innovator, and the regulator of future market
responsiveness”.
Ms Jennifer Westacott, Chief Executive, Business Council of Australia
Taking note of Israel’s record, Ms Westacott discussed cross-border commerce, the acculturation of
trade and the impact of small, open and interconnected economies. It is evidenced that policy
supporting the development of private enterprise is the fundamental driver of productivity. In
Australia 10 million people are employed by corporate business, and 80% of economic activity is
generated by the business sector. Ms Westacott challenged that those who campaign against
favourable conditions for business are duty bound to explain how Australia can prosper without the
contribution of private enterprise.
Ms Jennifer Westacott, Chief Executive, Business Council of Australia
Noting the interaction between large and small business, Ms Westacott proposed the conditions
needed for business to prosper. These included;
• Fostering a stronger sense of purpose
• Better understanding and engagement of consumers
• Working with suppliers as partners, not just contractors
• Deepening shared values through a core focus on business objectives.
The BCA aspires to support Australian business to be more competitive by advocating for policy that
drives economic growth. Threatened by uncompetitive tax burdens, Australian business has its
creativity stifled. Ms Westacott cautioned that if the incoming US President delivers on his
campaign proposal to reduce US company tax from 35% to 15% then Australia could encounter
further competitive tension of proportions yet to be imagined. She also strongly represented BCA
opposition to proposed tax increases on iron ore noting that Australia still needs mining, inclusive of
reinvestment and renewal. “Markets can buy their raw materials from someone else, and if they will
if Australian product does not represent value for money.”
The dimensions that feed into enhanced productivity include education, employment and financial
control. Ms Westacott asserted that a world class education system was critical. “We cannot
control foreign markets, but we can deliver the skills and competitiveness of our people”. She
discussed how flexibility in the workforce and better jobs and incomes drive productivity. “Australia
needs to revisit its discussion about workplace relations. Our system needs to be incentive driven”.
Finally, she discussed fiscal responsibility both in the context of creating the capacity to invest in new
business development and to absorb cyclical economic shocks by arresting public debt. “This is not
about mindless cost cutting, but about careful design of a smarter workforce”.
Ms Jennifer Westacott, Chief Executive, Business Council of Australia and Mr John Langoulant AO, WA State
President, CEDA and Advisor to the Vice Chancellor, Curtin University
Ms Westacott concluded her address by reiterating that a robust economy, driven by private
enterprise will deliver prosperity to Australia. Although populist solutions appear attractive, the risk
is that they mostly carry a short term benefit at the expense of devastating long term consequences.
The job of setting policy to protect and evolve business is a collective and urgent task. Business
must also respond by being ethical and markets must remain socially responsible. “Enabling
business to prosper will lift productivity and provide improved living standards for our future
generations. We should accept nothing less.”
In dialogue facilitated by Mr John Langoulant, Chairman of Westpac WA, Chairman of GESB and a
CEDA Board Member, the changing landscape of Australian business was further explored. Mr
Langoulant described the oration by Ms Westacott as a tour de force of business. Issues such as
executive remuneration models, wages and enterprise bargaining, academic collaboration, board
gender balance and foreign investment structures were all raised from the floor. Ms Westacott
provided personal insight into each of these matters particularly noting that the composition of the
boardroom must be based on substance, not prejudice. She also talked about well managed
incentives to attract business. “If we don’t provide the right environment, investors will take their
money elsewhere.”
A transcript of Ms Westacott’s speech to the AICC(WA) is available on this link.
Ms Julie Beeck, Executive Director, Metrix Consulting
Metrix Consulting provided a productivity survey to the event, with more than 100 responses
received and analysed real time. The full report is available on this link. Summary conclusions were
that there were mixed views on the effectiveness of Australian productivity, but the majority of
respondents considered we lagged behind both Israel and New Zealand. Leadership is the core
generator of productivity, with innovation and business culture being the favoured enabling factors.
It was agreed that a flexible work environment including working from home had a positive impact
on productivity. Greater gender balance on boards would also improve productivity.
Mr John Cluer, Chief Executive, Australia-Israel Chamber of Commerce (WA) and Ms Jennifer Westacott, Chief Executive,
Business Council of Australia
About Jennifer Westacott
Jennifer Westacott has been Chief Executive of the Business Council of Australia since 2011, bringing
extensive policy experience in both the public and private sectors.
For over 20 years Jennifer occupied critical leadership positions in the New South Wales and
Victorian governments. She was the Director of Housing and the Secretary of Education in Victoria,
and most recently was the Director-General of the New South Wales Department of Infrastructure,
Planning and Natural Resources.
From 2005 to 2011 Jennifer was senior partner at KPMG, heading up the firm’s Sustainability,
Climate Change and Water practice and its NSW State Government practice. Jennifer was also a
board director for the firm. During her time at KPMG, Jennifer advised some of Australia’s major
corporations on climate change and sustainability matters, and provided advice to governments
around Australia on major reform priorities.
Jennifer facilitates the contribution of the Business Council of Australia’s CEO members across a
policy agenda that includes economic policy and competitiveness; regulation; infrastructure and
sustainable growth; labour market, skills and education; engagement with Indigenous Australians,
global engagement; healthcare policy; and innovation.
Jennifer coordinated the development and release of the BCA’s landmark Action Plan for Enduring
Prosperity in 2013, which is widely recognised as one of the most significant contributions to
economic policy debate in Australia in recent years.
Jennifer has a Bachelor of Arts (Honours) from the University of New South Wales, where she is an
Adjunct Professor at the City Research Futures Centre. She was a Chevening Scholar at the London
School of Economics.
Jennifer is a National Fellow of the Institute of Public Administration Australia and a Fellow of the
Australian Institute of Company Directors, and since 2013 has been a Non-Executive Director of
Wesfarmers Limited and Chair of the Mental Health Council of Australia.
From Top left clockwise: Ms Cheryl Robertson, State Director WA, Microsoft Australia, Ms Jennifer Westacott, Chief
Executive, Business Council of Australia, Professor Lyn Beazley AO, FTSE CIE, Sir Walter Murdoch Distinguished
Professor of Science, Murdoch University, Ms Robin McClellan, Chief Executive Officer, Leadership Western
Australia, Ms Erica Haddon, Executive General Manager People, Change & Innovation, RACWA Holdings Pty Ltd,
Professor John Mamo, Director, Curtin Health Innovation Research Institute, Curtin University, Ms Robin McClellan,
Chief Executive Officer, Leadership Western Australia, Ms Cheryl Edwardes AM, Senior Advisor, FTI Consulting, Mr
Ian Green, Deputy Chairman, Gull New Zealand, Professor Mile' Terziovski, Dean, Curtin Graduate School of
Business, Curtin University, Mr Michael Anghie, Managing Partner, Strategic Growth Oceania and Western Region
and Asia Pacific Strategic Growth Leader, EY, Ms Jennifer Westacott, Chief Executive, Business Council of Australia
and Dr Patricia V Kailis AM OBE, Founding Director, MG Kailis Group