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Geoff Harris Positively Impacting Others

Where does the passion come from to use your own success as a means to support others less

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Published 9 days agoDuration: 2:032383 timestamps
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Where does the passion come from to use your own success as a means to support others less
fortunate? And what are the inbuilt qualities that make someone so consistently good at
positively impacting others in their environment? Today, it's Luke Darcy. The idea of self-improvement
and leadership, both on and off the field, has been a lifelong passion of mine. With one of my
oldest friends, we created a leader collective. I've had the privilege of working with thousands
of leaders in education, sport, industry, and the arts that have helped shift to what we see
as the 21st century style of leadership where everyone has a voice. In this podcast, we hear
stories from these iconic leaders. Jeff Harris was a founding partner of Flight Centre in 1982,
investing $3,000 to open the first Flight Centre in Melbourne. Flight Centre, prior to COVID,
was the third largest retailer in Australia behind West Farmers and Woolworths with 22,000 staff and
a turnover of $22 billion.
Including 2,200 company-owned stores in 14 countries. Jeff's business life is full of
numerous success stories, including taking a 25% stake in Boost Juice, supporting Janine Ellis
in growing from a handful of stores to several hundred. Jeff has made an enormous contribution
in the philanthropic world, purchasing a warehouse in Collingwood in 2002 to serve
as headquarters to the legendary Jim Steins' Reach Foundation, leasing it back to Reach for $5 per
year on a 50-year lease. Reach runs courses for the company, and Jeff's business life is full of
over 13,000 at-risk kids a year. Jeff's generosity and business acumen have supported many social
enterprises that have real impact, particularly in the homeless housing and youth at-risk space.
Jeff is the Vice President of the Hawthorne Football Club, serving the maximum nine years
from 2004 to 2013, and arguably the most successful period in the club's history.
Jeff has an Honorary Doctorate of Business from Swinburne University, and in 2019
was awarded an Order of Australia. Jeff Harris, great to see you.
Thank you, Lou.
Appreciate you.
Thanks very much.
Hello, everyone.
Appreciate your time. It's an extraordinary life of success and contribution. When I read that
back to you, Jeff, what are your thoughts? What are your reflections?
Well, I guess it's pretty amazing, because as we were saying before, Luke, I mean, I left school
at year 10, so all of my stuff has been just lessons from the real life, I guess. Nothing
really from university or whatever. It's just real life experiences that I've found what's
worked and what hasn't worked. And I was very fortunate. I had a strong father figure in my life.
And at 14, I was badly bullied at school one year. And if it wasn't for that father figure,
I would have been in all sorts of trouble. But he helped me a lot. And that's one of the
reasons why later on in life, when I'm now 70, I've always had an interest in youth at
risk and young people. And that was a bad case of bullying. So trying to help out where
I can, and kids with real issues these days, it's always really resonated with me. Because
I was lucky enough to have a strong male role model, and boys need that. A lot of young
boys don't.
Was that your own dad, Jeff?
My father.
Yeah. And he stepped in as a 14-year-old and realized that you're in-
He was there for me at the time when I needed someone, yeah.
Yeah. And practically, that just helped you work through. You said you left school in
year 10. What was he like when you decided-
Oh, I left school. I went and worked in an advertising agency, basically sweeping the
floors and what have you as a kid, as a male boy. And then I started at RMIT. I did a marketing
course after hours, basically, but started off as a kid.
You go back to 1982, Jeff, and you've stumped up $3,000.
That's right.
To start this thing called Flight Centre. And I, in the intro, described it's one of
Australia's greatest ever business success stories. When you look back, did you have
any sense that you were creating something that big? And what was the secret to its success?
I was lucky enough, I went overland in 1972 to London. Interestingly, spent $658 for a
seven-month trip hitchhiking from Darwin through India, Afghanistan, Iraq, Iran, how I survived,
I've got no idea.
Yeah.
Got to London in 1972 and I met two fellows called Bill James and Graham Turner
who are running a company called Top Deck Travel in London.
And we've become really good mates.
And in the early 80s, after working in London for that decade,
we come back to Australia with the idea of selling cheap flights
based on what the Europeans call bucket shops in Europe,
which is essentially selling cheap airfare.
So we kicked off here in Australia.
I lived in Melbourne, Graham in Brisbane, Bill in Sydney,
and basically we kicked off with one store in Melbourne, Sydney and Brisbane,
about three to four grand for our fit-outs.
And we knew nothing about travel, but we had a good, I guess,
business sense in terms of we needed to maximise sales per square metre.
So we put in a counter in the stores rather than having two desks or three desks.
We had a six-person counter so we could get more sales per square metre.
We had people on incentives, on commission, on profit share,
a whole bunch of things we did which were quite different in the industry.
But anyway, it took off just as jumbo jet travel was starting to take off in Australia as well.
And we were very profitable.
We had everyone in the company on a profit share from day one, staff and managers,
and we were very, very, very transparent in terms of our financials with all our staff
and both the incentive, i.e. profit share on the outcomes of the stores,
which all staff shared in it, and recognition systems with recognition,
which we had both monthly what we call buzz nights, getting new people,
welcoming new people up on stage in front of all the staff.
They'd have to introduce themselves, scull a beer or whatever,
tell their story, so they all felt part of the team.
And then we had an annual awards night as well.
So getting that incentive and recognition system was really important as well from the early days.
And we almost created a sort of a cult-like following internally because we actually won the Employer of the Year three years in a row.
So we had a very, very strong culture and it was a really egalitarian set up as well.
We never had any corner offices or fancy head offices.
We never, ever, in entire groups developed, any of us have a PA.
Because we expected the store managers to run their own business exactly the same way,
that they didn't have PAs or sit out the back in a corner office.
They had to be at the front selling with the team.
So we adopted that sort of egalitarian structure from day one.
And it seems like you still run your commercial world the same way.
You respond to your own emails.
Yeah, I've got a mobile.
That's my PA.
And it's the same for Graeme Turner, still the CEO of Flight.
That's all he has is a mobile.
And he runs the entire global team of 22,000 up to last year with a team of six.
Mobile and that's underneath that.
There's a whole lot of stuff that goes on that enables that.
Yeah, it's extraordinary.
We're digressing because there's so much of interest, Jeff, in talking to you.
You're a founding partner, still the CEO 40 years later.
I mean, that is an extraordinary Australian success story.
What makes him such a great CEO?
He's incredibly resilient.
He doesn't get stressed.
It's very difficult in a business as a startup.
It's very difficult in a startup then to go from small to medium to large.
It's almost an impossible skill to transition those three things.
And he's managed to navigate that.
I left full-time executive role in the early 2000s because I didn't want to be on a plane all the time
and I wanted to do some other things in my life.
But Graeme stayed on.
So it's resilience, it's optimism, it's can-do, and he'll be carried out in a box.
It's his whole life.
And he's absolutely fantastic at it.
We'll talk about.
We'll talk about some of your mantras in life, which I want to get to shortly.
But you mentioned having a father figure that was incredibly important for you,
having experienced some challenges when you were young,
and then you now having an interest in youth at risk.
But there's so many people I've met that have come across and said,
Jeff Harris changed my life.
Jeff Harris was such a great mentor.
Janine Ellis on this podcast, she mentioned you as one of the great mentors in her life.
We share a mutual friend who worked at Flight Centre for many years, Alison Crabb,
who I spoke to.
She talked about you and she said, changed my life, Jeff Harris.
So when I say that back to you, I can see you're almost sitting back in your chair.
I mean, clearly you've had a skill for mentoring people.
Where did that come from?
Look, I think at the end of the day, you've got to communicate very clearly.
I mean, to put it back into perspective, I suppose when I was in the executive chair
at Flight Centre, I used to go out to the store three days a week.
I wasn't in a head office environment.
I was out there.
I'd go to a store.
I wouldn't visit the manager first.
I'd visit the rookie, the newest employee.
If they'd only been there a day, I'd sit them down, say, g'day, how are you going?
What did you do beforehand?
What was the induction program like compared to what you've had previously?
How can we learn?
So it was sort of like I was really sort of transparent in terms of communication.
I was reasonably tough in terms of rights and responsibilities, but I was really generous
in terms of looking out for people and having their back.
So I think those two things are really important.
You can be tough as a leader, but also you've got to be very, very generous and make sure
you've got your back.
You've got to be very, very generous.
You've got to look out for people's back.
If they follow, you're part of the team and they do the right thing, you've got to be
really generous as a leader to make sure those people are looked out for, both professionally,
but more importantly, personally as well.
Yeah.
Alison shared a story with me in preparation for this conversation.
She had a really tough day in the office and you may remember this story and without getting
too personal, there was actually a criminal matter that affected her really personally
that she'd been on the receiving end of some serious injustice.
She's in tears in the office.
She said, you see her?
You put her in a cab home, but she said afterwards, her colleagues told her that you picked up
the phone and started lobbying on her behalf for change and she said never, ever lost on
her how important it was that you had people's back.
Was that just something that came naturally to her?
Yeah.
I mean, you just have to do it.
You're part of the team.
You've got to do whatever it takes in that regard.
Look, you'll learn.
I mean, I made every mistake known to mankind, but at the end of the day, if you look out
for your people and you're in business at the end of the day, you've got to do it.
You've got to make a profit.
The profits will take care of themselves if you look out for the people.
So I think that's really, it's just good business sense, really.
I wanted to move on to just quickly your philanthropic passion and you've done some extraordinary
stuff.
I mean, Flight Centre was an amazing financial and commercial success, but it feels as though
you've approached your philanthropic works in the same way.
I mentioned in the opener, the Reach Foundation, and you're on the board there for seven years
and you bought a building in Collingwood that still serves as its headquarters.
You helped open family.
Another national youth at risk charity, a major sponsor of Street, which is an incredible
social enterprise.
You bought them a headquarters for severely disadvantaged people that enables them aid
to work and a self-funded model in that space.
Where did that passion come from and how do you approach it?
I think the Street model is very interesting for everyone out there listening.
I mean, that's a social enterprise.
Now, in Australia, there's about 60,000 charities and there are about 30,000 social enterprises.
Now, a social enterprise.
A social enterprise is essentially a charity with a charitable license, so a government
license to operate as a charity, but it uses private enterprise to produce its own income.
So, rather than a business producing profits for dividends for shareholders, it produces
revenue to keep that charitable enterprise going and then plough those funds back into
growing more courses or whatever it is that they're trying to do.
So, in the Street model, it was looking after kids with severe, like at the absolute bottom
end of the pile.
No one wanted to look.
No one wanted to look out for either suicidal, drug-dependent, in jail, in a court system,
whatever.
And it was set up by a lady called Rebecca Scott.
She's an ex-scientist, a woman in her late 30s, early 40s, just a wonderful person.
And I met her about eight years ago and I was an inhabitant as a business person about
how you can use business to solve social problems.
So, Street had just started up and are in a very infancy.
And again, I thought, well, gee, why?
Can't we apply the REACH model in terms of buying a head office building?
So, what we did, we looked around in the Richmond area and we actually found a building actually
just nearby in Collingwood in Cromwell Street.
It was an operating brothel, Luke, and listeners, I'm sorry about that, close your ears, but
it was a brothel.
And indeed, the brothel had just been closed the day before by the police.
There'd been some sort of drug raid there.
And so, it still had pink satin sheets and high heels and dildos, God knows whatever
else.
There was a machine on the wall with chains.
So, it was actually, it was exactly the same as that.
It was up for sale.
So, I bought it, it was about $2.2 million.
And then we got a social loan from Westpac, a low interest loan of a million dollars.
And then we got donors of another million dollars and we've refurbished it.
And again, I put Street on a 50-year lease for $5 a year.
I also did a deal with the state government on land tax.
So, we're forgiving the rent to Street to do their social good.
Yeah.
We did a deal with the state government to forgive land tax.
So, we didn't have to pay the 100-odd grand land tax.
And we did a deal with council to forgive rates.
So, essentially, Street gets a free building.
All they've got to do is pay that small interest component of that $1 million, a free building
for $5 a year.
We own, our Harris family, own an inner city building for the next 50 years.
Yeah.
Achieving social outcomes.
Yeah.
But it's going to grow in capital gains.
So, it's an asset, but achieving social outcomes.
So, we structured, I think, really well.
And also, Street being a social enterprise, they had a coffee roasting division, a catering
division, a bakery, and a large cafe there, and had four other cafes as well.
Pre-COVID, January 2020, they were at 82% self-funding from all their businesses, all
the profits of the businesses, to get about 800 kids a year through their courses.
And they were budgeting to be fully self-funded, 100% self-funded, no philanthropic, no government
money, no donations by 2022.
By now, to have all those kids through, not $1 of government money, how good's that?
That's the power of social enterprise.
And there are about now 30,000 in Australia.
So, they are the disruptors of traditional charities, whereby traditional charities have
to raise about 90, 95% of their funds every year from government, philanthropy, donors.
So, it's a model that's not sustainable, really.
So, that's why I love the social enterprise sector.
And I can hear the passion, you know, come out in your voice.
You sit up in your chair, Geoff, when you talk about it.
Yeah.
Yeah.
I interviewed a guy recently on this podcast called Dan Flynn.
He started Thank You Water.
And effectively, what he was trying to do was to use products that everyone buys, the
big multinationals have access to, and he got shelf space.
The community said, I'll buy Thank You Water because it's a social enterprise and the proceeds
go back to his passion is about extreme poverty and trying to end extreme poverty.
Massive goal.
He was also saying that sometimes we hold...
The social enterprise is up to a level that we don't hold the commercial work.
If Flight Centre want to invest in a new technology and spend $50 million, it doesn't work.
Well, that's an investment.
Yep.
But you don't get afforded that luxury in the social enterprise.
Is that a problem with it or not?
It is a difficult space.
In fact, I had a book published about three years ago called Dollars and Cents, and it
was a book on social enterprise and 40 case studies around Australia.
And the reason being is that governments don't treat social enterprise seriously.
The Minister of Small Business federally doesn't have social enterprise under their wing, whereas
in the UK, the Minister...
Or a small business in a federal government there has a social enterprise section where
there's legal tax rules and standardisations and systems.
There's nothing...
We didn't even know how to approach that.
The tax office didn't know how to approach social enterprise in terms of taxing any profits
because it was registered as a charity.
And yet it was a business.
So there was all these things that we need more work in the social enterprise sector.
The other great thing about the street model was that we got dozens of kids a year jobs
once they'd come through the courses.
So unemployable through the street program.
Then into full award-based jobs.
And one of the businesses we're involved in is Fonda, which we're a 25% shareholder with
eight Fonda restaurants around Melbourne and two in Sydney.
We gave kids job scholarships at Fonda.
There's been about 15 through the last few years who went through the program and then
they were fully employed in no store.
So that's when you're making a real difference.
Find Mexican food, Fonda, of attended regularly.
And you branch off into so many areas, Geoff.
I mean, it's fascinating to see.
But I can see the logic that you apply to all the things you do, whether it's charity,
whether it's being on the board of the Hawthorne Football Club.
Now, I'm going to branch off.
I normally, I love, and I could talk to you for hours in a whole range of different directions.
But you sent me an email in preparation for this, Geoff, that I've become a bit obsessed about.
And then this was the headline.
Just sent me one line.
You said some very basic leadership points, Geoff Harris, you may be interested in.
And there's 20 points, Geoff, that to be honest with you, I would describe more as a masterclass
in leadership.
And it's so on point with what this is.
This podcast is about empowering leadership, a new range of leadership.
It feels to me as though you're very much ahead of your time.
Now, I asked you beforehand, I said, would you be comfortable in sharing those 20 points?
You said, look, it's open source.
I've never really published them.
But if you do want to look them up, we will, Geoff's been kind enough, we'll share them
in the show notes.
I'll put them out on Instagram, LukeDarcy14.
I'll put them out on LinkedIn as well if Geoff's kind enough to do it.
But Geoff, rather than sort of going through the top 20, but I want to touch on as many
as I can.
Have you got a top five?
Have you got a top five of your points on leadership that resonate the most?
Well, I'll have to start off with the mighty hawks, Luke.
How do you feel about that?
Are you going to let me talk about that?
I'll give you a couple of minutes.
You're on a short leash on that one.
Okay.
Because the first one was really, I guess, for any organisation, being it a school, a
business, a radio station, whatever it may be, it's setting a clear and compelling vision.
And the great lesson or the most successful, succinct vision I'd ever been a part of was
in the Hawthorne Football Club in 2002.
In 2004, when Clarko, Alistair Clarkson was appointed as coach, Hawthorne Football Club
was second last.
It was losing about a million dollars a year.
One o'clock forward, we won a premiership in 2008.
But in 2008, the board then, which I was vice president of, set a vision and it was called
5-2-50.
So we hadn't won a premiership in 19 years.
We'd had 12,000 members in 2004.
And we'd had 12,000 members in 2004.
So the five years was, in five years, 5-2-50, in five years, we wanted to win two premierships
and have 50,000 members.
5-2-50.
People laughed at you at the time.
They laughed at us.
Laughed you out of town.
They laughed us out of town.
You've got to be joking.
In five years, two premierships, 50,000 members.
We set that as our vision.
That was it.
5-2-50.
Everyone knew it.
Every single staff member can understand it.
And we asked anyone, they knew exactly what it was.
We won the premiership that year.
We got to 52,000 members.
At the next year.
And we played off Sydney in 2012 at the end of the fifth year.
We were in front 10 minutes ago.
We lost by eight points.
And I'm still grimacing about that.
But if we had it, and we're at 62,000 members there.
So in five years, we won one premiership, nearly won two.
We achieved our 50,000 members.
That was a very simple vision.
It was compelling.
It energized people.
And it raised the bar of success.
So I guess my challenge to anyone in any organization,
what is your organization's vision?
Does it matter?
Everyone know it.
Has it been set, not by the board in some remote location
and put on a plaque and a foil and no one has any ownership of it,
but does all the teams had a skeletal draft of that vision?
Have they workshopped it?
Have they got ownership of it?
And then it comes back and two, up to the board or management team,
back to the teams within the organization.
And then you set on it and then you'll haul up your flag and go for it.
And then you give all the various divisions, like a membership division,
we doubled their resources, increased their advertising and marketing.
We gave the footy department more resources, et cetera.
But we knew what we wanted to achieve.
And if we had have actually beaten Sydney,
that 5-2-50 would have been perfectly implemented.
But it still is the most successful and simple vision
of any organization I've ever been a part of.
And what people who maybe don't follow Australian rules football as closely
as others may not understand is that after that particular vision,
Hawthorne won three premierships in a row and continued on into arguably
the most successful period.
And Australian rules football history.
And I don't want to jump ahead of your points,
but if I could jump in for a moment because you also appointed Alistair Clarkson
as part of that, who, for those listening,
has now etched his name as one of the great modern coaches.
But it was controversial at the time.
A lot of people thought he wasn't a fit.
And some of your proud Hawthorne past players weren't happy about it.
I mean, was that a hard decision?
Well, I was on the interview committee at that time,
and we'd interviewed Rocket Ede, Gary Ayres,
Dermot Brayton, who were unbelievable footballers.
Terry Wallace might have been.
Terry Wallace was another one.
Terry Wallace.
Sorry, not Dermot Brayton.
Terry Wallace.
Dermot was on the committee, I think.
Terry Wallace.
All unbelievable football people, very good senior coaches.
And he then walked a bloke from Adelaide just about eating a football with passion,
banged the door down with enthusiasm, was left field in his thinking.
But more importantly, the board took the strategic decision to go young on our list.
We were going to go.
Very deep in the draft with young talent, young men.
So by definition, we need an educator.
We need someone who could cut through and teach young men about football and about life.
Clarko had an MBA and a teaching degree.
So then it become very clear, as well as him being passionate and a young man who was hungry,
he was the obvious person for the job.
So we put him on a short term contract, two years if he can't coach, we can get in a Lee Matthews
or a Terry Wallace or whatever, but he ended up being one of the great coaches of all time.
So, but that education factor was fundamental in getting that young
group, uh, off to the races that were, and the other thing we did also, I'd been to Kokoda
twice before and I insisted to the board, then one thing you can do to create a greater
spirit of core was to send the entire list off to Kokoda, uh, a 44.
And we did that.
And that was fundamental also as part of trying to help create a culture and a, and a rich
sort of togetherness amongst the group.
I mean, one of my great life regrets that Jeff, I have to say, uh, I was passionate
about the history of Kokoda, had tried to organize a trip.
I was playing through that same era, uh, or a little bit before it.
And the club decided it was too risky that the potential to get, you know, malaria and
they knocked it on the head.
And I watched the Hawthorne players come back and I know that you were the champion of that
with this great life experience.
So I always looked on that with jealousy.
Oh, just to jump in because 0.7 on your list, speaking of Alistair Clarkson, and I encourage
anyone, if you're listening from a small business background, if you're listening from whatever
education or leadership space you're in, look up Jeff's 20 points, 0.7, because I referenced
this in relation to Clarko.
You say in the list, you said.
Yeah.
You sent me staff are your greatest asset.
Bullshit.
You say only the right staff, A graders and the right roles are your asset.
Poor performing staff or staff in the wrong roles are your biggest liability.
Aces in places, higher on positive attitude, cultural fit, teamwork, determination to succeed
fire on negativity, poor performance, poor values, poor attitude.
As you said to me before we started recording, it's not rocket science, but when you put
it down and you're so clear on it, you can create extraordinary results.
Again, going back to Hawthorne footy club example, uh, 2000, 2000, 2000, 2000, 2000,
2004, second last, uh, broke losing a million bucks a year.
We, we had 15 people in the football department.
Uh, we got rid of 14 out of the 15.
Uh, we had, we, we placed the CEO, the president, uh, half the board, uh, football manager,
fitness manager with the best people you can find in the world.
Simply just the best of the best.
Uh, so we had A graders in all the key slots, uh, and we climbed the mountains that were
a wonder flag in four years.
So, so if you're going to have a strong vision, you need A graders to implement that vision.
Yeah.
It's a logical next step.
Yeah.
And if you've got B graders or someone's a bit negative or doesn't want to be there
as a leader in your organization, you have to make the change.
It'll be expensive with, uh, working conditions in Australia, having to pay people out, but
it's much cheaper than those people staying on and affecting the morale of the entire
organization.
If they're not working quite often, they'll be happy for it because they'll know that
they're not the right fit anyway.
And practically Jeff, have you done that in your businesses in flight center and all the
other enterprises?
There's, there's many that you've been involved in.
If you see someone's not the right fit, you're quite quick to say.
We're not for you and you're not for us.
Well, certainly, probably not enough in the early days because we're learning, but become
obvious later on.
I think aces in places or A graders in your key driving slots of the organization, it
is a non-negotiable.
So you have your strong vision and then you might have, say the leader of the organization
might have, say six key reports and they are all absolutely A graders in those various
disciplines.
Brilliant.
And then, and then you, you, you, you delegate to the nth degree to those people and let
them get on with it.
You don't micro.
Manage.
Yeah.
Empower them.
Empower them.
To, to, to, to run their role.
So I've taken you off the top five of your top 20.
What, what's next on your list?
Okay.
So, uh, I would go then that, um, number, where are we?
Number, number three really is the, is the, the delegation to those A graders.
And I would, I would, I would equate that with being, if you're, if you're working in
a business and then you're appointed as leader, you, let's say you're the leading, one of
the leading players in the business or leading part, one of the leading players in a football
team.
I'd equate it to being like a, a, the lead violinist in an orchestra.
You're one of the lead, leading people.
Then you're going to go from lead violinist in the orchestra or the team to the conductor.
From the lead violinist to the conductor.
So you go from the senior person in the organization to the CEO or the conductor.
You, then you need those aces in places that the conductor can wave the baton to.
And then you've got to give those aces in place, the resources to succeed.
They have a formal plan.
You have a quarterly, monthly or quarterly one-on-one.
And then hold them to account based on the outcomes you want for those people.
So I think that's probably a pretty good analogy for that one.
And how practically in the spaces when you say, you know, holding people to account and
quarterly and annual, did you have really set, you know, objections and key results?
Was there, was there a system that you used in that?
Yeah, I think you've got to have for each of those key people, then you've got to have
sort of measurable outcomes that are not subjective bullshit, but objective targets that they
know clearly they have to go.
So if it's a football coach, a lineman.
It's getting blokes from X speed to Y speed or X tackling numbers to Y tackling numbers
within that quarter.
Say, whatever the conductor or the leader wants to have improved within that particular
discipline, that person working that discipline as team leader has to know clearly what their
tasks are.
If they don't, well, they're wandering around like a headless chook.
And then it's up to the leader to hold them accountable, give them the resources that
they've got the tools to do that.
And then have the, okay, by next quarter, Luke, I want to see you have.
This, this, and this in place.
Is that okay?
And then you've got a specific plan.
I'll look at the plan to make sure.
Yes, I think that's realistic.
You're on the right track.
And then we'll sit down.
You might be in front of two or way behind on one when we have that quarterly meeting.
And then we can reassess that.
I'm not going to whack you over the head and say, okay, well, we're behind on that.
What do you think we can do to catch up on this particular one?
Do we need the extra resources from head office or whatever it may be?
And you're crystal clear, you know, the communication element I'll come back to, but I've got plenty
I want to jump into, but what's next on your list?
Well, look.
I guess fourth was, and again, going back to Clarko, clearly communicating rights and
responsibilities to your team.
So discipline, standards, performance, values, punctuality, and teamwork, people crave for
it.
And if people are not prepared to follow, then it's FIFO or it's death by a thousand
cuts.
FIFO meaning first in, first out.
Fit in or.
Fit in or.
Yeah, yeah, yeah.
Or F off.
Or F off.
So, and again, I'll use Alistair Clarko as an example.
He got all the players down to Kerford Road Beach in his first few weeks on a, running
the sand and swimming.
And I think the first morning was six o'clock.
The 44 blokes were down there and one bloke was late.
Blokes, I told you about six o'clock.
They did the workout, coming back at five o'clock the next morning.
I think legend has it that might've been Shane Crawford who was late.
Could have been.
I'm not saying anything.
The next morning they get there, they do the workout, two blokes turn up late.
Sorry, boys.
We're back at four o'clock tomorrow morning.
And some blokes are scratching.
He said,
this has got nothing to do with footy.
This is bullshit.
And he gets them all back to the room.
He said,
I know it's got nothing to do with football, but it's about punctuality.
That was one of my rights and responsibilities, boys.
You have rights, but you've got responsibilities.
If I call you a team meeting at nine, you will be there at nine o'clock.
Do you understand me?
Or if you've got to go to rehab, you will be there at rehab.
Unlike last year when some blokes weren't turning up to rehab.
So the leader set the rights and responsibilities very clear.
It's like a parent-child relationship.
The kids need to have boundaries.
And what I learned when I wasn't tough enough early on,
and my leader,
if you don't do that, it's death by a thousand cuts.
And if the leader doesn't then follow through on that,
and those standards start to slip,
people start to say,
what the hell is the boss doing?
So you have to make sure if you're going to set those things,
they're reasonable, everyone understands them,
and everyone has buy-in,
and they are implemented and followed through.
Because otherwise,
if you start having leadings and people turn up late,
and you let them turn up late like Brown's cows,
you're whistling Dixie.
Yeah, death by a thousand cuts.
That was your number one point around clearly communicate your rights
and responsibilities.
But when you say that,
that unravels if there's not clarity in terms of the boundaries,
people are confused in organisations.
Individual and team boundaries, what we stand for as a group.
And some people say, look, that's not fair.
Well, obviously it's not for you, this organisation.
I wish you all the best.
We'll support you to get jobs elsewhere.
But these are our standards.
And as I said, it's like a parent-child relationship.
We have standards for our kids.
So why wouldn't we have them for our people?
And what I've found is that most people want to work within standards
and disciplines.
And they're confused.
They're comfortable working in a structured environment
whilst having input and flexibility around the edges.
But people like having that sense of belonging within some sort of structure.
It can't be totally laissez-faire.
People know the boundary.
You feel comfortable and you can thrive within that environment.
So I've got my list on your list.
So I'll let you keep going.
Well, I guess the fifth one I had underneath those other points was
you've got your A graders in place.
You've delegated well.
You've got your rights and responsibilities.
And you've set your strategy, and then I've got to spend equal time on the strategy,
50% strategy, but 50% execution of practical and communicate endlessly to all staff.
I remember an advertising campaign one of the big four banks had about five years ago.
It was on TV and radio.
And customers were complaining when I walked into the bank branches,
the tellers hadn't heard of it.
A classic example of the strategy might have been brilliant, rocket science.
But guess what?
They didn't tell their people.
The execution was appalling.
And master's hardware stores come to Australia about five years ago to take on Bunnings.
They adopted the American model to Australia.
The strategy was fine.
Let's take on Bunnings and grow a hardware business in Australia.
But the execution, none of them bothered to come out here and test the market in one store under their nose,
say in Melbourne, maybe a couple of stores, fine-tune it from the American model,
the Australian model, test various things, make sure they've got Aussies loving it
and they've got the right product mix for Australia.
Didn't do that.
They rolled out 70 stores from day one, and they were losing.
I think $75,000 a day, a day per store after five years, because their execution was appalling.
So equal time on strategy for those leadership group.
And then, so 50% strategy, 50% execution, and talking through the execution,
making it really clear and debating it amongst your team members,
the practical side of the execution so it can be executed well.
And when you were up and running in, say, back to the flight centre days,
and you say 50% strategy and the creative time,
have discipline around that 50%.
Did you have, literally, allocate time in the week to say,
hey, this is about being creative and innovative?
We broke up the entire 22,000 staff into teams of six and seven,
and tribes of 150, based on anthropological studies of, well, I'll talk about this.
In 2000, sorry, in 1989, we set up a store in Elizabeth Street.
It had 100 square metres.
So I had six staff the first year and made $200,000 profit.
Phones ringing, people lined up.
I said, all I've got to do is double the number of staff.
I'll make $400,000 profit.
This is easy.
We went to about 12 staff and made $200,000 profit again the next year.
Still really busy.
We then went to 19 staff.
The profits went down to $120,000.
And at the same time, one of the boys read a book on anthropology.
And this is when we'd gone from a start-up to about 2,000 staff.
At the same time, we were getting calls from our staff.
We can't do that.
We can't contact you like the old days.
You're always on a plane.
You're not there like the good old days.
We can speak to you directly.
So what, and this book on anthropology talked about American Indians, tribal chiefs of tribes of about 150 people.
It talked about Aboriginals hunting and gathering in pods of about, sustainable pods of about 30.
And it talked about mum, dad, and three or four kids was about the right family model.
So we broke the company up into family, villages, and tribes.
And so with 1,000 staff.
With 1,000 staff, you'd have about seven tribes of 150, each tribe, which is about eight stores, each tribe would have their own general manager, accounting, marketing person, their own flag, their own name, and they'd compete against other tribes.
So in Victoria, there might have been, say, 10 tribes competing against each other.
Each tribe would employ new people.
They'd get them up at the monthly buzz nights, which were for recognition.
And they'd welcome new people to the tribe.
They'd tell their story.
And in that 150, you'd know everyone.
If it's 1,000, you'd listen.
You'd lose track.
You don't know who's in your community.
So breaking up business into smaller teams also, we found, was fundamentally important.
And we found conclusively that any more than seven people in a team had started to break down economically on outputs.
So whether it's a board team, a shop team, an accounting team, a radio team, that six or seven should be about the maximum.
So even in the end, pre-COVID, we know two years have devastated the travel industry.
And Flight Centre hasn't been immune to that.
But 22,000 staff, you're still able to just replicate that seven-team model.
And it's served you well, even at that scale.
Well, yeah.
Well, having said that, Luke, the COVID thing has decimated travel and the tourism industry and hospitality, as you're very well aware.
Very much so.
But Flight Centre has managed to hang on and indeed is now very, very busy.
So – and they're trying now to get more people back into the industry.
Yeah.
That's the biggest I've tried to find, people.
So I'm going to jump around on some of – and as I said earlier, you know, please, you know, if you're listening and Jeff's been kind enough to share these 20 dot points on leadership.
And, you know, I look at it as a real masterclass of someone who's spent their life in leadership.
So we'll give you the links of how to look that up.
As I said before, I'll put it out on Instagram, LukeDarcy14.
We'll put it in the show notes.
Right down the bottom, point 20, and it leads – have fun.
Be proud of your organisation, your town, your country.
Enjoy the journey and the things that success brings.
You've been a good celebrator along the way.
Tell me, you've always – I remember the Flight Centre parties were legendary.
I think I attended a Flight Centre ball at one stage.
I got a rogue invitation, which was good fun.
So you see that as being pretty crucial.
Well, look, if you can't have fun in business, what's the point in doing it?
And all of us, especially these days with COVID and bloody, you know, wars in the Ukraine or what have you, there's been so much sort of nasty stuff around.
I think we have to sort of get back to the basics.
And, you know –
Enjoy each other.
Enjoy – make sure families have fun.
The basics in life, whether it's a little kid or whatever, we just enjoy those simple moments because life's too short not to.
And certainly, we put a lot of emphasis in all the various businesses.
We had award nights, both six-monthly and annually.
At Flight Centre, prior to COVID, we had 3,000 people at our global awards.
So it was – two years ago, it was at Berlin.
3,000 people from all over the world, we flew them to Berlin for five days.
So can you imagine the cost of that?
But the cost of not doing it was substantial because that was part of the glue of the culture that people were striving to achieve their outcome because they'd get to Berlin if they achieved their various successes in their businesses.
So I think that's a really important thing, getting incentives in organizations, clear incentives for people, measurable on outcomes, and then having recognition systems commensurate as well.
So you recognize – some people love being recognized.
They don't care about the money or the incentives.
Some people don't care about the recognition.
They just want the money or the incentives.
So if you can have very simple incentives in the organization and a very clear and fun recognition system, recognizing people on a great job in front of all the team, those two things are really important to think about.
And you think that covers, as you said, people who are remunerated in different ways, aren't they?
As you said, people value different things.
You found that system worked well where recognition and financial reward probably covered most people as incentives?
Well, no question.
We run a very, very strong program.
We have a profit share system at Flight Tennis where everyone was on a profit share in the teams.
And I'll tell you a great story about when we listed the company in 95.
So here we were a startup as a startup, and I thought, God, this – and we opened the doors, and that was my last dream to have been involved in my own business.
And that's another thing for all of you out there.
If you want to get involved in the business and you're thinking about it, don't be an old man or an old lady in your rocking chair at 80 saying, I wish I had.
I was a gunner.
I might have.
If you want to have a crack, you put the capital aside, you take the risk, and you have a crack.
And if it fails, you've learned.
You've won because you've learned.
You dust yourself off, and then you go and do something else or have another crack down the track.
But don't not have a crack because that is a failure.
Where were we, Luke?
Sorry.
That's a great point.
Well, I think that's another one of your points, and I love it because so many people – I'm passionate about the small business space, Jeff, as well.
And you take on some risks.
You take a few deep gulps, and you're inevitably going to fail at some stage, or it's not always successful.
You mentioned the hospitality industry.
We've been in for a long period of time.
You have – but the joy of being able to create something yourself.
So I love hearing people.
I love hearing people like you say, have a go, you know.
And clearly, you would have had – in the numerous things you've done, some haven't.
Is there an example of one that you could say, I back this idea in just to humanize your story, Jeff, because it is full of success?
Was there one that –
We've only got an hour, haven't we?
Of course.
Look, people are going to make mistakes, but I guess what I'm saying, if you're looking at doing something for the first time, I'll take a step back to the flights in a day.
I've met some guys in London who I knew were very good.
They'd run top-debt travel.
We were talking about a concept here in Australia.
I knew – I was committed.
I was committed.
I knew that it'd work.
I'd put some money aside.
If I'd lost that, it wasn't the end of the earth, what did I have to lose?
I was 28, energy, passion.
It didn't matter.
Would it have been a learning curve?
So I think if you're providing – you're not going to sell the farm, as it were.
You've still got some assets elsewhere.
You put that money aside, you devote two or three years of your life, and you have a go because you'll regret it if you don't.
Life's too short not to.
So I think that's really important.
Everyone out there – and Australians are as good as anyone in the world, I can assure every one of you out there.
We said – I remember going to London, setting up shops, Canada, South Africa.
We can eat – America.
I mean, jeez, we're so far in front of the X.
Aussies are as can-do and as good as anyone in the world, so do not discount what you can achieve.
Point eight on your list is Mandela's leadership legacy.
Take on your base when needed, i.e. Invictus.
Leaders' courage to change.
That's what I'm talking about.
Conventional wisdom.
What are you referencing there?
Invictus is one of the great movies.
Nelson Mandela – and we had 150 stores in South Africa, so I know that story over there pretty well.
We set up before Mandela was – whilst he was still in jail.
It was either going to be a civil war when he got out or tourism was going to grow dramatically because they were going to release all the embargoes due to apartheid.
We invested prior to Mandela was released, and it ended up being a fantastic, successful business, flights into South Africa.
But what I'm saying there is that Mandela and his presidency –
Black South Africans
Their passion was soccer
That was their sport
The white man's sport was rugby
That was the Africana sport
The people that had terribly abused Black South Africans
And given them no chance in the social systems
Whatever due to apartheid or separate development
Mandela said to his Black African base
I want us to go to the Rugby World Cup
And I want to hand out the cup
And I want to back our rugby team
And his base said to him
You cannot do that, Madiba, leader
We are soccer people
And we don't have nothing to do with those white guys who have trashed us
And Mandela said
We have to reconcile this country and bring everyone together
So the leader took on his base
And then he converted his base
And sold them the vision of
We are all going to be
For South Africa to work
The whole of South Africa had to be together
And he was there
He handed over the cup to Francois Pinoir
The Afrikaans
White man who was Afrikaners
Were the people who were doing all sorts of things
Unfortunately to Black Africans
South Africans
He handed over the cup to him
And that was a fundamental moment
And white South Africans were cheering that Black president
Because he did that
So the moral of the story is
It's up for you as a leader
If you know something is wrong
Or your industry or your government
Or your business is going in the wrong direction
You have to have the courage to change that conventional wisdom
And you have to have the courage to change that conventional wisdom
And go left when everyone else is going right
And prosecute your case
So that was Mandela's leadership legacy to me
Yeah I'm not sure why my mind
As you're saying that
How can you compare to Nelson Mandela
And what he did in that moment
As you said to have the vision to understand
That that was going to unite the country
And don't often reference politics
But what John Howard did
Taking on his base
When we had the tragedy down in Port Arthur
And his people didn't want
A ban on
Guns and automatic weapons
And to me that was an incredible bit of leadership as well
Politically to say
Hey this is the right thing to do
And you think of what happens in other parts of the world around that
Sometimes you've got to educate your own base around
What is right and what is wrong
It's called leadership
And it's very difficult to do
But I think you have to have
Once you've got a particular mindset
That you fervently believe in
That's the leader's role
It's not about being popular
Sometimes it's about taking people where they should be
Not where they want to be
And that's the leader's job
To navigate their people under them
Be it a politician or a leader
And explain the reasons why we're going where you should be
Not where you want to be now
Because this would be better for us as an organisation or as a country
Takes great courage Jeff
Part of what we've been doing in the work
At a leader I was talking to you about
Before we started today
Is seeing these traits that we see great leaders
Like you ahead of your time
But modern leaders are really
Identifying with similar traits
And that's why I was
So fascinated in your 20 point document
And I keep referencing
And there's going to be a lot of crossover here
But I'm going to ask you a series of questions
We've been asking all the leaders on the podcast
And so please expand
And I'm sure it overlays with some of your
We see leaders really
Are clear on their own sense of self-leadership
What does that term mean to you?
Self-leadership
I feel almost embarrassed
I don't feel like a leader at all
I guess it's how others perceive you really
I really don't know how to answer that Luke
Because as I said
Other school leaders don't know how to answer that
So I'm not formally educated in leadership
I think it's more just being
Totally honest and transparent with people
Doing the right things
What comes around goes around
And people will see through you
If you're not genuine
And you're not communicating directly
And honestly with them
And as I said
And have their backs as well
That's the basics really
It's hard for me to explain
Jeff you know I find that fascinating
And it has been
A common response
With people like you
Who clearly have had
An extraordinary life of leadership
The humility to say
I don't see myself as a leader
But as I asked that question
I look at some of your
Points on your document
Point nine
Leaders must radiate
Optimism
Enthusiasm
A can-do spirit
Point ten
Leaders must raise the bar
Lift expectations
Set a clear and compelling vision
So many of the things
That you clearly have done
Throughout your life
Can I mention that point
In a clear life example
Again this was Jeff Kennedy
Who's president
And Jeff you know
He's got people
People love him
People hate him
But he was a crash through leader
As a politician
And I remember in 2008
When he was president
Of Hawthorne Football Club
I was next to him
As vice president
On a board meeting
And we'd won the first
Nine games that year
The Hawks
Great Luke
It was fantastic
And we had the youngest
Listen to com
And conventional wisdom was
Geelong was going to win
The grand final
Because they'd won
The previous year
In 2007 if you remember
And they had the oldest list
Most experienced
Most successful team
Around but
All the media
Was saying Geelong's going to win
So we'd won the first nine
And Clarko and Chris Fagan
The footy manager at the time
Come in for a board meeting
To report
On one of our monthly board meetings
And Jeff was there
At the end of the table
And they're doing the report
On nine zip
And all of a sudden
Jeff
He's fidgeting with his papers
And he bangs the table
And he says
Okay I've heard it all
What do we need
To win the premiership
And we all sort of
Looked at each other
And he said
What resources
Do you need extra
This is our year
To win the flag
We might never get
That opportunity
But we've got to win
How are we going to do it boys
What extra resources
Do you need
So he said
Do you need any other physios
Whatever you need
We will supply it
But this is our year
To win the premiership
I expect us to win it
So
And it was sort of
Not exactly that language
But
The moral of the story was
The leader raised the bar
The leader raised the bar
And us
Me and Mort
Were looking around
Well shit
We're not competing
For the premiership
Now we are expected
To win the premiership
So what that did was
The leadership group
In the football department
The players
Took it apart
Upon themselves
To get in
Stuart Chu
Who'd been with
Port Adelaide
In the grand final
And said
We're expected to win
The premiership
We think we can win
The premiership now
We're not just competing
Because the favourites
Are going to win
What do we need
To win the premiership
And so all that sort of
Stuff started to happen
And we won the flag
So the moral of the story
Is the leader
Has to set the tone
In terms of where
The organisation's going
And that goes
It was fantastic
It was really a wonderful
Bit of leadership
How did the coach respond
Across the board table
To that
Because that's a delicate
Relationship at times
Well it was
But I think Clarke
Was a fantastic coach
And leader in many ways
But sometimes
They're that
Imbued in the fog of battle
It's hard to look
Above the parapet
So I think
Someone clearly
Setting the expectations
And the fact that
Yes you are good enough
Coach yes
We have the player list
And these boys
These young boys
Might never get
An opportunity
You know
We have to seize the moment
That was a mantra
Seize the moment
So I think that was
Yeah that was wonderful
And one of the great
Grand final wins
That was fantastic
We see leaders
Are really conscious
About how they positively
Impact others
And I mentioned this before
The amount of people
That I've heard
That have spoken about you
In a life changing way
I mean
Have you consciously
Thought about
How you positively
Impact others
Not really
I mean I've just been
Pretty lucky
I suppose
I guess the only
The only other message
I can put there
Is that if doors open
And you can see
A positive there
And that door being open
You've got to have a crack
And walk through the door
Yeah
Because
, you know
Life's too short not to
So don't
Don't discount your ability
Whatever station you are in life
Doesn't matter if you haven't
Got a degree
Or you're not
On the right side of town
With your black, white
Pink
With pink spots
Male or female
It doesn't matter
If the door opens
For an opportunity
Have a crack
Because you just don't know
Where that can lead
And if that
If I look back on anything
That was
When I decided
To have a crack
With Graham and Bill
And Flight Centre
We walked through the door
We risked everything
And that was
You know prior to
In the first Gulf War
In 1990
To put this into
Perspective
And taking a risk
That was when
George Bush the Elder
Was bombing
Saddam Hussein
In Iraq
Because Iraq
Had invaded Kuwait
And there was
A live war
On CNN
For the first time
Where bombs were dropping
We had about
500 shops
At that stage
A privately owned company
Prior to listing
And it was like
A run on the banks
People were queued up
To get refunds
So all they're doing
Is getting refunds
We lost about
300 grand
In that November
Another 300 grand
In December
We had
200,000 of cash
Left in the bank
We had a million dollars
Overdraft
Which was maxed out
Our dogs, cats, wives
Houses mortgaged
So everything
Mortgaged
A million dollars
Overdraft
And I sat down
At the kitchen table
When that war was on
All of our shop leases
We had 56 million dollars
Of personal guarantees
On shop leases
To shopping centres
You know five years
$50,000 a year
250,000
Buy all those shops
56 million bucks
Of personal guarantees
A million dollars
Overdraft
200 grand cash
Or about a week's
Cash to go
So we had
That's stress
But
We
We
We
We
Oh and another
Moral of the story
Is so the shit
Excuse me
The proverbial
Had hit the fan
And Thomas Cook
In Europe
Had sacked
About 20%
Of their workforce
Because this war
Was going on
Staff were coming
Out and saying
Is our job safe
Yes your job's safe
All the other companies
Are cutting staff
So we said
Your jobs are safe
We then had
Town hall meetings
In various states
And we got all our staff
And said
We need your ideas
And how we're going
To trade out of this
We will guarantee
Your jobs are safe
No one's going to get the boot
We're all in this together
We either all sink together
Or we all prosper together
But everyone's job is safe
We invited the teams
To go back
Discuss ideas
And how they can trade better
Make more
And try to bridge that loss
So we can last longer
Because we were very transparent
We said
Here's the state of our books
Here's how much money
We've got left
We've got everything
Mortgaged
We cannot do anymore
As directors
We've put everything
On the hock
We need to somehow
Get out of this
They come back
To us with a bunch of ideas
And we had
Like a South Melbourne store
Come to me
And said
Can we operate
They had six staff
Nine to five
Monday to Friday
And nine to twelve
On Saturdays
Can we work shifts
Can someone start at twelve
Finish at eight
Can someone work on weekends
Wednesday, Thursday
And Friday
Because they had kids
Blah, blah, blah
That opened the store
Another thirty-two hours
For that week
Because they were working
On shifts
So they went from
Forty-two hours
To another thirty-odd hours
Opening
Yeah
It's on their input
Their idea
If we'd have told them
We would have opened
Another thirty-odd hours a week
They would have laughed
Yeah
So we had all these ideas
Of their ownership
On how they could
How we could survive
And we put them all
In a pot
And gave everyone
Those ideas
Within
About a week
The war was finished
And we had
Incredible
March, April, May
June record profits
But what we had
Is everyone knew
We had their back
And that's when
We won the employer
Of the year
For the next three years
We'd created a cult
We didn't realise it
Because those people knew
That whatever happened
We were there for them
But we got their input
So when the proverbial
Hits the fan
In your organisation
You go to your people
And say
How can we dig ourselves
Out of the hole
And you're absolutely up front
You're totally transparent
With whatever's going on
They knew the state of play
They just
They knew we'd given
Everything to it
But we needed them
For their IP
Their knowledge
Their feedback
The brilliance of that
Is Stan
I love
One of your points
Is about total transparency
On everything
And you've lived your life
That way
But I often
You know
In the commercial places
That I've been exposed to
You often see
These great ideas
But people are never asked
They're never
It's only a small group
In effectively
The leadership group
That tend to hold
All the ideas
So it seems
A great lesson
You know
To give everyone
A voice in their environment
For a start
It empowers people
To want to make a deal
As you said
Suddenly staff are saying
How can we work more for you
Without more
Exactly
When I'm talking about
That vision thing before
I mean we provided
Everyone with a skeletal
Draft of what we thought
It could be
And then we got amongst
All the teams debating
And then they added
Meat to the bone
Of the skeletals
So they had ownership
Yeah
But we led them to water
With a skeleton draft
And then they
They cobbled it together
All those good ideas
Come together
So everyone
Owned that vision
It's the same thing
What happened
At flight centers
And so I guess
If everything's not doing well
It's having your entire team
Together trying to come up
With ideas
And how you can
Once you're totally
Transparent with what's happening
Then they own the problem
And then they can come up
Help you
The leader
Come up with better ideas
Well that was the next dimension
The leadership wanted to ask you
About how do you go about
Creating and sharing your vision
I don't think you can get
A better story than that
Of what you just told
You told the Hawthorne story
Beautifully about
Really crystal clear vision
I mean
Is that applied in
In everything
In your personal life
In your charity space
Is it
We always tried to
Going back to my flights
In the days we had
Personal goal setting
In the early days
For all of us
Had an A4 sheet
With our business goals
And then we developed that
For personal goals
For everyone as well
When we did one-on-ones
And then that
More
We morphed into
Two things we did
Which were really successful
We set up a thing called
Money-wise and health-wise
So the money-wise thing was
In your personal goals
We want to see
How you're going financially
So you know
Luke you're investing in shares
Or you've got any real estate
Whatever
So the money-wise thing
We hired some
Financial planners
That the company did
And their job was
To do a one-on-one
Every six months
With every staff member
So it's fine to earn that
X dollars a year
How are you investing
Saving
What does that share
Make you
What does that real estate mean
What's a
All those things
Coaching them on those things
And then we
And then that developed
From money-wise
We set up health-wise
So every head office
We put in a gym
We did a one-on-one
Every six months
For their health planning
With blood pressure
Doctors checks
If they needed it
All those sorts of things
So those two things
And then
And one of our
Our very loud
Female store managers
In Brisbane
Then set up another division
Called Naughty Wives
So all the stories
From conferences
Were published
We sort of turned a blind eye
And looked the other way
From that
But the health-wise
And money-wise things
Were personal coaching
On people's personal lives
And that had a big impact
And they were in-house programs
They were in-house programs
Totally fun
And what have you
And even that
And interestingly
That health-wise
Developed into a business
Active travel
Which does
Organises marathons
Because there's so many flights
And the people
Are then booking
Into half marathons
And marathons
We organise
We set up a separate company
To book marathons
At Berlin
Blah blah blah blah
And London etc
I love it
Incredible
We see leaders
Who are really curious
And through that lens
That's how they approach
Their learning and development
And point 18
On your list
Probably sums this up
Jeff
I'll ask you
Leaders are readers
They seek out new ideas
By learning off
Other successful people
Find a mentor
How do you think
About curiosity
In that space
Well that's
It's fantastic
I mean
I've tried to read
I read that
Barack Obama
Had his
New resolution
Two years ago
Reading a book
Every month
So I've adopted that
So I lock myself away
Every second or third night
In the study
And I read for about
Half an hour
And the current book
I'm reading
Is on Bitcoin
And I've got no idea
What it's about Luke
Absolutely no idea
And I'm halfway through it
And I still haven't
Understood a thing
But I'm trying to
Get my head around
Blockchain
And all that sort of stuff
And how Bitcoin's
Disrupting traditional currencies
But mainly
The books
I can't read
Anything
But factual books
I can't read anything
But factual books
I can't read anything
But factual books
I can't read anything
But factual books
So I try to read a book
On success stories
Business
Personal
Sports people
How they've been successful
And you'll always pick up
One or two points
So as I've said
They're leaders
Or readers
If you want to learn
You have to read
Real life stories
About other people
And what they've done
In their lives
You'll always pick up ideas
And I think
As a leader
Do not discount
The power of mentoring
That mentor
Mentee relationship
Is fundamentally
You can change
A young life
Around
By simply
Taking the time
To sit down
And talk to people
And giving them
The benefit of your experience
That's what life's all about
It's not that parent-child thing
But formally doing that
Under your watch
That you have that
And it might be
In a community organisation
You're with
Or within your own business
Or organisation
That you have
You try to adopt
Some form of
Formal mentoring process
Within the company
I love that you're reading
About cryptocurrency
With all the success
That you've had
That your mind
Is still curious
On what is a
Disruptive space
At the moment
And halfway through the book
And I've got
Absolutely
Is there
Can I ask
Is there a book
As a
Obviously a passionate reader
Is there a book
That stands out
That you could recommend
To people
One I've just
When I've just finished
Was on Winston Churchill
And Clement Attlee
In the Second World War
And if you witness
Our national cabinet
We had with COVID
Winston Churchill
Set up a team of six
He as
Prime Minister
Chairing the cabinet
His vice chair
Was Clement Attlee
Who was the leader
Of the Labour Party
Clement Attlee
Ran the domestic side
Of England
While England was at war
For six years
And Churchill ran the war
They had three
Conservative leaders
And three Labour leaders
As other delegates
Other board members
And they ran
They were the war cabinet
So if you think
Through what Morrison did
For the national cabinet
What we should have done there
Is what Churchill did
Is invited
The Greens
Albanese from Labour
In the war cabinet
Our war was on COVID
And then so
The entire political system
Would have
Out of control
Had ownership
Of the drugs
What they brought in
What timing
And then you've got
The enemy inside the tent
Peeing out
Rather than outside
Peeing in
And there's total ownership
From the leadership group
Within Australia
And no one can blame each other
And I think that was
A strategic blunder
By not doing that
Based on their book
I almost feel like
This might sound like
A ridiculous thing to say
But politically
Every fourth year
You should have
A combined year
Where you bring all that
You know
Warlike cabinet together
And then
Maybe set aside
Certain things
Like infrastructure
Or education
Or part
Where you
Where you can
Agree on things
Rather than the
Point scoring
I look
People from overseas
That rang me
Friends of mine
It's an island
That you live on down there
You mean to tell me
You can't get into
The west of Australia
And that policy
Is different
When you think about it
Logically
It's insane
It was allowing the states
To go their own way
And if I had my own way
I'd abolish all the states
And councils in Australia
And I'd create
The Germanic system
With about
30 provincial governments
Have a strong
Federal government
And Victoria
Would be say
Greater Ballarat
Greater Bendigo
Greater Shepparton
Greater Western
Greater Melbourne
With a provincial governor
Governor S
And those
Those provincial governments
Would handle the old
Council functions
Filling in potholes
And old state
Government functions
So you get rid of
One level of government
Overnight
And that's day one
If I was a dictator
And day two
I would ban one level
Of bureaucracy
And health and education
At the moment
It's jointly held
By the feds
And the states
I would push
All those levels
Those two
Those levels
Of education
Back to the provinces
Or I'd give it
To the
Only
Or to the feds
Only
So both health
And education
And take that
One level out
So that's
One level
Of bureaucracy
Entire bureaucracy
And health
One level
Entire bureaucracy
And education
And one level
Of government
And then I'd marry
Those provincial governments
With the federal government
Five year terms
And voting electronically
Might have to get you
And your mate
Geoff Kennett back
And have a go at that
You'd have to change
The constitution
But we are woefully
Over governed
And I think
The states proved that
Where they're all going
Off in their own way
And we didn't have
The federal government
That could manage it
From one best way
Across the whole country
Fascinating idea
That the other dimension
That I wanted to move to
Is leaders communicating
With clarity
And all your points
In your document
You sent me
Point one
And you mentioned
Clearly communicate
Rights and responsibilities
You mentioned that
Point two
Total information sharing
Communicate everything
Don't bullshit
Tell it how it is
I mean clearly
They're at the top of your list
How you communicate with people
And again that Gulf War thing
That total information
We had a whiteboard up
There was no screens
And we just wrote in
Our financials
And they just knew
We only had a week or so
To go with cash
So that was very
And you know
If there's problems
In the organisation
You've got to be transparent
And if the issue is you
As leader
Okay I've stuffed up guys
I made a mistake
I'm human
Show your vulnerability
As a leader
People
We're all human beings
We're going to stuff up
That's life
Was there some nervousness
In doing that
When you had that many staff
And you say
Hey we've got your
Back
But literally
We're going to run out of cash
We had no choice
We were going to run out
Of cash anyway
So we didn't want to tell them
To put people off
Would have been disastrous
So it was either
All sink together
Or prosper together
And we absolutely prospered
Because they knew
We had their back
We see modern leaders
Jeff
Really value collaboration
Perhaps more than ever
I mean how do you think
About collaboration
How important
Has that been for you
Look obviously
You know
Involving your people
In the decision making
You can't have the lunatics
Running here silent
I think
But you know
You can involve people
And give them
Your strategic thinking
And then invite people
To add value to that
And certainly your team
Of six under you
They should be fundamental
In the direction
Of how the organisation's going
And the other thing
I'd put in
I think it's really important
Within that is
Point 15
I think is banning
Externalisation
So it's easy for people
In society
To blame
Whatever it is
Governments
Leaders
The fact that
It was on drugs
At the end of the day
It's your responsibility
You know
What are you going to do
About it
And how are you going to change
So if it's to be
It's up to me
So I think that
If it's coaches
Whinging about umpires
Or if it's leaders
Whinging about the weather
Or whatever it is
If it's to be
It's up to me
As leader
You have to ban
Externalisation yourself
And look inwards
On how you're going to
Solve those issues
And if you're a footy coach
And you lose a game
You'll learn more from that
Than winning a game
So it's not
Blaming the umpires
Or blaming the weather
If you've lost the game
It's how do we learn
To kick straighter
How do we do
More tackles
More pressure acts
Whatever
Then we might get to a victory
So I think that's
A really important point
To put in there
And also really
Inculcating an innovation
Culture in a business as well
So you're constantly
Looking at ways
To turn left
When everyone else
Is going right
And be prepared to
Bring those new ideas
Into the organisation
And trial them
You might trial them
Within a small area
Of the business
So it's not at the hub
But it's at the end of the spoke
And trial that
Radical idea
And it might be
The new Frappuccino
Like Starbucks
Trial in one of their stores
And took off globally
So you have to have
An innovation culture
That's deeply embedded
In the business
That you're prepared
To try new things
All the time
And invite your people
To come up with those good ideas
That we will take them on board
So if someone comes up
With that idea
Look okay I'm not sure
But let's give it a crack
If you think it's good enough
It's incredible
Shared wisdom Jeff
Right across your life
I've been asking
All the leaders
These final two questions
And take some time
As long as you possibly like
But the first one is
Who's been the greatest leader
In your life?
I used to drive to work
Listening to Winston Churchill tapes
Because at the height of the war
No one gave Germany any chance
It was
I'll fight them on that beach
I'll fight them on the hills
And I used to get the air
In the back of my neck
Standing up
It's an interesting question
I think Barack Obama
For his oratory
Was quite inspiring
I think
Probably
Kennedy in Victoria
Whether you love him
Or hate him
Was a crash
Or crash through merchant
And I think
Got a lot of stuff done
Which was incredibly controversial
But had the
The proverbials
At least to do it
What he said he did
So he implemented
Exactly what he said
He was going to do
And I think
Obviously Mandela
For his
Forgiveness
In terms of
What
The Afrikaan race
Did to black people
For generations
And his forgiveness
And inclusiveness
Was an amazing message
For that country
And we were over there
Two years after he was released
I remember going over there
And the most
Died in the war
White Afrikaan people
Revered Mandela
Even though
Two years before
They would have seen
They were thinking that
He was going to be
A communist leader
And he was going to be
Probably another civil war type thing
So his inclusiveness
And ability to
To forgive
Was I think
An amazing story really
Incredible stories of leadership
All of the ones that you referenced
If you could collaborate
With anyone in the world
On anything Jeff
It's a diverse group of people
It's a diverse life
That you've lived
Is there a person
Anyone that springs to mind
Richard Attenborough
I think he's absolutely inspirational
In terms of what he's done
For our global environment
And he's leading us
To thinking about
Climate change
And how we should be doing
So much more
Globally
And
In terms of investing
In green technology
In terms of setting a vision
For green technology
And
I mean for instance
Down the east coast of Australia
There's a bunch of coal mines
Which are
Which have been
Controversial in Australia
People saying
They're going to lose their jobs
Well okay
Why couldn't we
As the leader of Australia
Saying okay coal miners
We will transition you
From coal to
Whatever it may be
Wind, solar
Maybe even nuclear
Portable nuclear power
So whatever it may be
So there's no stuff going up
There's no crap going up
In the atmosphere
We will transition you
We'll pay your wages
We will train you
And we will transition you
In that five or ten year journey
To that new green technology
Your jobs are going to be
As a safe
We will wean coal
Wean you off coal
And we'll invest in these
And invite global capital
To invest in these technologies
But you are
We are
We've got your back
You're not going to lose your job
So we needed a transition plan
Not just
That's this sort of constant
Well we're going to back the coal miners
Because you're going to lose your job
Well why should they lose their job?
We'll back them into new industries
And let's have a ten year plan
JFK said
We're going to send a moon
Send a man to the moon in ten years
Not because it's easy
Because it's hard
We should be doing the same thing
We've got heaps of sunshine
We should be the world's biggest exporter
Of sun
Sun power
To Southeast Asia
Invite capital from all over the world
Via tax breaks
To invest in solar energy
And be the leaders in the world
In solar technology
And solar exporting
And migrate all those coal miners to that
But we need a ten year vision for it
We saw
You know
Mike Cannon-Brooks from Atlassian
Try and buy
AGL
AGL
Which is
You know
To fast track
What you're talking about
In that space
Yep
Yeah
It's a brilliant thought
And every time
I hear you go off on a tangent
It seems to be
You know
With some deep thinking
And as I said at the start
Jeff
A supplementary question
Before I wrap up
Because as someone who's
Been one of the most successful people
In the global travel business
Where's your favourite place to travel
When Jeff Harris goes for a break
Where do you go?
Well I've got a place at Noosa
I love it there
But in terms of overseas
I love London as a town
Because it's so cosmopolitan
There's so many great bars
And restaurants
My favourite travel memory
Was when I went over
When I was in
Europe
Working on the buses
With Bill and Graham
My co-founders at Flytus
That ran Top Deck Travel
I was working for an opposition company
In the 18 to 30s
Bus space
Like Contiki tours
Those sort of things
Not with Contiki
But another company
And I did three Russia scandies
And I remember being in Russia
In 1974, 75, 76
On three trips
In the depths of communism
And then I went back home one summer
Via New York to Australia
Seeing Moscow in the depths of communism
And a lot of people
And I remember
A month later
Seeing New York
The depths of capitalism
And comparing it to
That was my favourite memory
Probably politically
And in terms of countries
When I went overland to London
Being in Afghanistan in 1972
It was the most feudal
Backward country you'd ever see
But fascinating
Because it was so backward
Probably for me though
And in terms of
Just a leisure place
San Sebastian in Spain
I think it's an amazing place
To go to
The Basque territory
Of northern Spain
I love that
Geoff, it's been
An incredible opportunity
To catch up
I'm really grateful
That you were prepared
To sit down with me
And to sit down
With me
And also
Thank you for being
Generous enough
As I said
I see it as a masterclass
Of your life
The 20 points
We will get them out
And share them
If you're comfortable
With that Geoff
I'm sure people listening
Will be inspired
By your thoughts
And how clear
They're not rockets
They just might be
One or two points
That might help people
People can take on board
Your humility comes through
In everything you do
So we'll put them
In the show notes
I'll put them out
On Instagram as well
At Luke Darcy 14
Geoff Harris
It's been a great honour
To spend some time with you
Thanks so much
Thanks Luke
Appreciate it
Go Hawks
Empowering Leaders
Was presented by me
Luke Darcy
Produced by Matt Dwyer
With audio production
By Darcy Thompson
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