Adam Dixon on the key threats reshaping Australia’s standing and economic future
In ‘Australia: A Lighthouse in the Global Storm – The CEO Imperative’, Kearney chairman Adam Dixon explores the trends reshaping Australia’s economic future, from geopolitical instability to rising wealth inequality and technologies reshaping society. In this op-ed, Adam walks though the five imperatives for CEOs to navigate the nation’s changing landscape.
In Australia, we are often called the ‘Lucky Country’: a mineral-rich landmass with a relatively small population, advanced infrastructure, a stable government, and a well-functioning society. But such an advantage is not a given. Success can quickly be eroded by apathy, indecision, division and moral confusion.
Slowing economic growth and stagnant workforce output have pushed productivity to a critical point of concern – voiced by policymakers, analysed by the media, and agonised over by executives.
Despite strong per capita wealth, our labour productivity growth has fallen to its lowest level in decades, with OECD nations including Ireland, South Korea and the United States outpacing Australia. R&D and foreign direct investment have also declined, as regulatory burdens and tax complexity make Australia a harder sell for international capital.
We remain disproportionately reliant on commodities, lacking the diversification of economies that trade in high-tech or knowledge-intensive goods, leaving Australia at risk of falling behind on invention, capital attraction and its ability to shape future industries.
Imperatives for CEOs
Five imperatives for CEOs to navigate this changing landscape:
Avoid the Stakeholder Trap
CEOs now face an expanding cast of stakeholders. Trying to please everyone rarely works; the strategy drifts and focus is lost. Manage stakeholders with a clear hierarchy: customers first; employees next, since no CEO can execute strategy without a capable workforce; shareholders, who must ultimately be satisfied; and everyone else – regulators, governments, media – managed prudently, not obeyed.
Be Customer First, Not Digital First
Digital First is not a strategy. It’s a tool. When the tool becomes the focus, organisations lose touch with the people they’re meant to serve. Contact centres are gutted, chatbots replace empathy, and customers are left shouting into the void of automation – sound familiar?
Insist on Meritocracy and Diversity
Meritocracy can’t thrive in a closed system – if talent is drawn from a narrow pool of the same schools, the same networks, the same socio-economic backgrounds, then “merit” becomes a reflection of privilege, not potential. True meritocracy requires open competition: breaking down barriers to entry and rooting out unconscious bias in selection and development.
Stand Against Cancel Culture
Many leaders now try to avoid difficult conversations and confusing silence with safety. Businesses lose their moral centre and leaders lose authority. CEOs and boards must role-model honest, constructive debate.
Speak Business Truth to Political Power
Australia needs business leaders willing to push back when governments overreach rather than absorbing poor policy. Prosperity depends on a collaborative private sector.
Talent and investment are increasingly looking to other markets
The innovation gap is driven by three factors. Australia’s gross R&D expenditure sits at 1.6% of GDP, well below peers such as the United States (3.45%), Sweden (3.64%) and Israel (6.35%), and commercialisation remains underdeveloped – foreign entities continue to lead Australian patent filings.
We also face a two-way talent squeeze: a 40-year high in skills shortages, alongside slowing skilled migration and domestic talent lured overseas. Decades of resource-driven stability have bred a kind of structural conservatism, leaving us reliant on imported technologies rather than developing them.
Bigger AI budgets don’t deliver better returns
No technology can have a transformational impact without the right culture behind it. AI is moving faster than any technology shift before it: where the internet took seven years to reach 100 million users, ChatGPT took two months. AI is also emerging through a fragmented, competitive ecosystem shaped by geopolitical tension and growing calls for digital sovereignty.
Within the AI domain, Australia needs a skills-first approach: hybrid talent pipelines and stronger partnerships across universities, startups and public agencies. This is a race for belief, commitment, and cultural reinvention.
Supply chains are now a top CEO and board priority
Global supply chains have been altered by a constant, accelerating wave of disruptions. CEOs and boards should treat supply chain resilience as a core strategic priority, just like financial health or cyber security – embedding clear executive ownership, KPIs and accountability, and championing cultural shifts that build resilience into organisational design.
A call for action
Australia cannot control global tides, but we are not powerless. We may not be the biggest ship in the fleet, but the course we chart still matters. Every CEO, every board, every sector has a role to play in shaping how technology is developed, and in defending the values that define us.
