Improving organisational culture for members

4 min read
4 min read

It’s of no surprise to many the superannuation industry is facing its own fork in the road. The Hayne Royal Commission, the Productivity Commission into Efficiency and Competitiveness, the APRA Capability Review. More reviews and more data.

More recommendations on improving integration across the Age Pension, compulsory superannuation and other savings. As this article goes live, the Government’s review of the retirement income system is gearing up.

How many enquiries, assessments and reviews does the industry actually need to understand the heart of the matter is that organisational cultural changes are needed to put the member first?

The science behind enhancing cultural and governance outcomes

There are two driving factors for super funds today – improving the transactional elements that drive better member outcomes; and improving organisation culture and governance.

To date, most superannuation funds have focused on the transactional elements to improve member outcomes through greater net investment returns, reducing fees and costs, improving service and meeting insurance needs fairly. This essential work must continue.

However, the more difficult action, improving culture and governance, needs to become a priority – and the challenge is for fund trustees and executives to proactively lead this effort.

Improving an organisation’s culture also improves member outcomes. A deeper understanding of an organisation leads to earlier identification of the consequences (good and bad) of any changes. Risk is reduced and opportunities can be recognised and assessed better. When there is greater operational efficiency team members feel a deeper sense of personal agency or empowerment and the end result is improved member outcomes.

The role of the trustee and how they lead is crucial. The successful relationship between the trustee and senior executives and taking aligned actions in service of members is also crucial.

How to ensure culture enables best member outcomes

The cultural aspirations needed to produce best member outcomes must consider if people are genuinely focusing on best member outcomes in each and every interaction. If they are, how would they be viewing compliance requirements versus best member outcomes; efficiency and effectiveness versus best member outcomes; talking about member outcomes and advocating for all stakeholders, with the member first.

From the CEO and the executive team perspective, are they genuinely focusing on best member outcomes? How they are communicating member outcomes to the organisation; how they are advocating for best member outcomes in strategic and risk planning sessions; how they are partnering with the trustee on removing impediments. Key factors including how they are structuring the organisation to best serve the member and are executives working across all functions to have collective ownership of member outcomes need to be noted. Are management freeing up people to focus on and advocate for best member outcomes? Finally, do the leaders demonstrate openness to constructive criticism to lead differently to enable best member outcomes?

When it comes to trustees and their focus on best member outcomes, it is imperative to consider whether they are demonstrating their support for best member outcomes in every action and communication. Are trustees ruthlessly challenging anything that gets in the way of best member outcomes? It’s important to monitor how they respond positively to the regulator and industry guidance in service of best member outcomes.

To enable such a culture requires an evolution of how the industry thinks, what it believes about its purpose and most important function – best member outcomes. Superannuation is a complex environment. It is challenging to effectively meet compliance standards and evolve the business model to adapt to the rapidly changing industry and continually focus on best member outcomes.

This is why culture is so important.

Accelerating the culture and governance journey roadmap for best member outcomes

Improved organisational culture will improve a fund’s performance and its ability to convince APRA it does indeed understand how important culture is to improving member outcomes.

The trustee chairperson needs to take responsibility for their fund’s Culture & Governance Initiative as a standing item at board meetings. And the fund CEO also needs to take responsibility for development of a comprehensive Culture & Governance Initiative. The tune from the middle must be in harmony with the tone from the top to tailor the initiative, based on shared values and put members first. Additionally, if the executive team is to foster trust, creativity and innovation, it must improve the working environment to be collaborative, open, transparent, inclusive and diversified environment. People are adaptable to changes in member needs. Finally, there should be a genuine partnership with members.

The industry doesn’t need another review to spell this out.

Picture of By Sean McGing

By Sean McGing

managing director

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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.