Culture change

5 min read
5 min read

Culture drives the best outcomes for members

Leaders in superannuation funds, service providers and regulators must steer their organisations with courage, creativity, and conviction to build capabilities that are strong, trustworthy, adaptable, resilient and innovative.

To successfully build and sustain all of these characteristics over a lifetime will depend on having the right culture! And if anyone had any doubt about that, witness the enormous positive impact made by leaders grounded in the right culture during the COVID-19 pandemic, and vice versa.

Why is culture so important for leadership?

To quote the father of business management thinking, Peter Drucker: “Culture eats strategy for breakfast”.

What is culture?

Organisational culture is often defined as “what really goes on around here”. It is crucial to consider culture through the lens of “why does the stuff that goes on around here happen?”. A core part of this is the tacit assumptions of an organisation. Tacit assumptions are often formed by the actions, behaviours and mindsets of the most influential people in the organisation – the formal and informal leaders.

How the board leads is crucial

The “tone from the top” influences behaviour. The successful relationship between the board and senior executives in taking aligned actions in service of members is also crucial. Leaders at all levels need to cascade the right actions through an organisation – the “tune from the middle”.

World-renowned expert Edgar Shein identified that the top four drivers of organisational culture are all leadership attributes. In order of effect:

  1. What a leader attends to, measures, rewards and controls
  2. How leaders react to critical incidents
  3. Leader role modelling
  4. Criteria for recruitment, promotion, and retirement

The importance of culture in superannuation

Learnings from the Hayne Royal Commission, and related financial services leadership investigations into culture, governance and accountability including the independent Prudential Inquiry into CBA, clearly show that shortcomings in culture increase risk and lead to adverse outcomes.

But culture’s importance goes well beyond risk. In a mature culture, strategy can be explored in depth in a challenging yet safe, trusting, collaborative setting. Actions will be more effectively executed and supported when espoused values match the values being lived daily by leaders and staff.

Super funds must adapt over time to be the best they can be – continuously improving employee behaviour, ways of working, relationships, strategies and processes.

Matching core culture on values is a critical determinant in considering fund merger goodness of fit, providing the foundation for success.

A good culture in superannuation puts the member at the heart of every decision.

APRA’s leadership expectations on culture

APRA has been publicly preaching that sound risk culture is critical to risk reduction since the GFC. In recent years APRA has established a dedicated risk culture team.

The Hayne Royal Commission, the CBA Prudential Inquiry, and its review of self-assessments by funds has led to APRA setting high expectations on the importance of culture and leadership to attain the right culture.

APRA sees leading on culture as critically important on multiple fronts. It expects culture to be a constant presence, high on funds’ agendas and getting more attention. Culture as a driver – not as just a risk indicator, and not just in how the funds’ risk management framework assesses, measures and improves its risk culture.

APRA expects funds to recognise the fundamental that good culture feeds into better member outcomes.

Critical areas of improvement

APRA’s views are becoming more pronounced over time as it sees the issue as increasingly important.

Expect the culture elements of Superannuation SPS 220 on Risk Management to move towards the stronger CPS 220 currently imposed on banks and insurers.

Post COVID-19, improving culture to improve member outcomes, plus reducing risk at any fund and systemically across the industry, will emerge as a critical area of improvement in APRA’s eyes. Improving culture is interrelated with the more tangible implementation of SPS 515 member outcomes assessments.

A roadmap for effecting culture change

To change culture, leaders must first change the behaviour of their people.

Superannuation funds’ board and management need to truly “get it” – to truly understand and believe the power of culture in improving their funds and that this flows through to better member outcomes as well as better risk management. APRA believes this and can see if fund leaders believe the mantra or not – through their discussions and seeing fund actions.

The journey towards a stronger culture must include the following processes:

  • listen and understand APRA’s position and its building emphasis on culture
  • understand your own fund’s position – where does it sit on the culture maturity path currently? Where to target?  Where and how can outcomes be improved through culture?
  • as an example, a super fund could review its leadership’s actions on the Early Release Scheme from a culture perspective
  • determine how best to lead culture change – framework, roles, responsibilities and accountabilities, measurement, and monitoring
  • determine objective measures of success and test them as programs are implemented
  • commit to the journey—improving culture and leading that positive change—before APRA calls out your limitations.

The result will be a more resilient, sustainable, better performing super fund for members and staff in a fast-changing world.

Picture of By Sean McGing

By Sean McGing

managing director

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Derek Thompson

Via live link

Best Selling Author, Podcast Host of 'Plain English'

Sessions

Keynote 8 – Navigating the energy transition: opportunities, investor strategies and policy needs

Few speakers can match Derek Thompson‘s ability to synthesize mega-trends in society, labor, economics, technology, and politics. Put another way: Derek trawls the data sets and does the forecasting and deep reporting necessary to help us better understand how we live, how we vote, how we spend, and how we work.

In his paradigm-shifting #1 New York Times bestseller, Abundance (co-written with Ezra Klein), this award-winning journalist reveals how our policies and culture have pushed us into a world of scarcity (not enough housing, workers, or progress)—and offers a radical new path towards a world where housing is affordable, energy is plentiful, and innovation flourishes across industries.

He shares a compelling vision of a future where we have more than enough for everybody, and a practical, actionable roadmap for how to get there. It starts with taking more risks, building more expansively, and recognizing that we all have the power to create a world of abundance. “Everything’s utopian until it’s reality,” he says.

Carmen Beverley-Smith

Executive Director - Superannuation, Life & Private Health Insurance, APRA

Sessions

Keynote 8 – Navigating the energy transition: opportunities, investor strategies and policy needs

Carmen joined APRA in March 2023 and holds the role of Executive Director, Life and Private Health Insurance and Superannuation.  

She has had an esteemed career in financial services, spanning over 25 years. She has held diverse leadership roles at Westpac and Commonwealth Bank of Australia, including across risk, transformation and change, product and portfolio development, and sales and service. 

Prior to joining APRA, she held the role of General Manager, Risk Transformation Delivery Integration at Westpac. This involved leading the group-wide implementation of a suite of solutions to uplift risk management capability and develop data, analytics and reporting. 

Carmen leads with a values-driven approach and a particular interest in developing and mentoring talent. 

She holds a Bachelor of Commerce and Accounting, is a certified Chartered Accountant and a Graduate of the Australian Institute of Company Directors. 

Amy C. Edmondson

Novartis Professor of Leadership and Management, Harvard Business School

Sessions

Keynote 8 – Navigating the energy transition: opportunities, investor strategies and policy needs

Amy C. Edmondson is the Novartis Professor of Leadership and Management at the Harvard Business School, a chair established to support the study of human interactions that lead to the creation of successful enterprises that contribute to the betterment of society.

Edmondson has been recognized by the biannual Thinkers50 global ranking of management thinkers since 2011, and most recently was ranked #1 in 2021 and 2023; she also received that organization’s Breakthrough Idea Award in 2019, and Talent Award in 2017.  She studies teaming, psychological safety, and organisational learning, and her articles have been published in numerous academic and management outlets, including Administrative Science Quarterly, Academy of Management Journal, Harvard Business Review and California Management Review. Her 2019 book, The Fearless Organization: Creating Psychological Safety in the Workplace for Learning, Innovation and Growth (Wiley), has been translated into 15 languages. Her prior books – Teaming: How organizations learn, innovate and compete in the knowledge economy (Jossey-Bass, 2012), Teaming to Innovate (Jossey-Bass, 2013) and Extreme Teaming (Emerald, 2017) – explore teamwork in dynamic organisational environments. In Building the future: Big teaming for audacious innovation (Berrett-Koehler, 2016), she examines the challenges and opportunities of teaming across industries to build smart cities. 

Edmondson’s latest book, Right Kind of Wrong (Atria), builds on her prior work on psychological safety and teaming to provide a framework for thinking about, discussing, and practicing the science of failing well. First published in the US and the UK in September, 2023, the book is due to be translated into 24 additional languages, and was selected for the Financial Times and Schroders Best Business Book of the Year award.

Before her academic career, she was Director of Research at Pecos River Learning Centers, where she worked on transformational change in large companies. In the early 1980s, she worked as Chief Engineer for architect/inventor Buckminster Fuller, and her book A Fuller Explanation: The Synergetic Geometry of R. Buckminster Fuller (Birkauser Boston, 1987) clarifies Fuller’s mathematical contributions for a non-technical audience. Edmondson received her PhD in organisational behavior, AM in psychology, and AB in engineering and design from Harvard University.

 

Daniel Mulino MP

Assistant Treasurer and Minister for Financial Services

Sessions

Keynote 8 – Navigating the energy transition: opportunities, investor strategies and policy needs

Born in Brindisi, Italy, Daniel was a young child when he moved with his family to Australia. He grew up in Canberra and completed his first degrees – arts and law – at the ANU. He then completed a Master of Economics (University of Sydney) and a PhD in economics from Yale.

He lectured at Monash University, was an economic adviser in the Gillard government and was a Victorian MP from 2014 to 2018. As Parliamentary Secretary to the Treasurer of Victoria, Daniel helped deliver major infrastructure projects and developed innovative financing structures for community projects.

In 2018 he was preselected for the new federal seat of Fraser and became its first MP at the 2019 election, re-elected in 2022 and 2025. From 2022 to 2025, Daniel was chair of the House of Representatives’ Standing Economics Committee in which he chaired inquiries; economic dynamism, competition and business formation and insurers’ responses to 2022 major floods claims.

In 2025, he became the Assistant Treasurer and Minister for Financial Services.

In August 2022, Daniel published ‘Safety Net: The Future of Welfare in Australia’, which aims to explore the ways in which an insurance approach can improve the effectiveness of government service delivery.