“In difficult times, what tends to happen is that companies will take a risk-less approach to recruitment,” says Paul Lyons, the managing director of listed boutique recruiter Ambition. “They generally look for people who’ve done it before, who have a track record at a similar level in the same industry.”
With many parts of corporate Australia facing subdued market conditions, cross-industry appointments these days aren’t very common, Lyons says. “They’re far more common when the market is stronger and people are willing to grow and take risks.”
When change is good
But there is a counter to that norm, he adds. “When an organisation wants to make a statement about change, or make a radical change in terms of culture, approach or direction, then often they want somebody who’s outside the industry – somebody who has a different set of skills and experiences.”
This is likely the case at Ten.
“There’s probably a line of thinking there that goes, ‘we have to be bold’. That’s probably the reason for this appointment: they can take a ‘nothing to lose’ approach.
“I think where you see an organisation making OK progress, they may be more cautious. But Ten’s board may feel they have to gamble a little bit.”
Dr Hilary Armstrong, the director of education at the Institute of Executive Coaching, says the use of leaders across industries is a positive sign.
“Culturally we believe that the leader should know everything in his or her area,” she says. “But the sign of a good leader is the ability to build relationships and a powerful team, with individuals who do have subject-matter expertise.”
Leaders facing complex problems can’t get too bogged down thinking solely in terms of a specific industry, which is why leaders with cross-industry experience can be very effective, she says.
While company boards are often reluctant to take a leap of faith with their executives, for the executives approached to take on a position in a new industry, it’s rarely unwelcome.
“Many senior people see themselves as being experts in leadership, rather than particular sector experience,” Lyons says. “They feel that when they move to a different sector, if they’re successful, they’re broadening their appeal. This makes them far more open to moving as they see it as an opportunity to progress their career and improve their marketability.”
Dr Armstrong says that to succeed in such appointments, it’s important for leaders to approach their role collaboratively. “You need a more distributive approach to leadership,” she says. Executives who don’t do this are likely to find cross-industry leadership very difficult.
A recent example of an executive who’s used a cross-industry appointment to his advantage is Robbie Cooke. He left the gaming industry in 1999 after his company was bought out by Tatts Group. He took on a role in online travel retailer Wotif, becoming CEO, and earlier this week, was announced as the new CEO of Tatts Group, a company with a market capitalisation four times that of Wotif.
His new skills were stressed upon his appointment, with Tatts chair Harry Boon making note of Cooke’s online retailing experience.
While boards are often reluctant, executives have a lot to gain by making a leap.
Myriam Robin is a reporter for SmartCompany and its sister site LeadingCompany. She has degrees in economics, international studies and journalism. She likes writing about businesses taking risks and doing new things.
