Retail funds will offer low-cost indexed products, which will deliver inferior returns.” future leaders Besides compulsory inflows, many of the industry’s dynamics will remain constant throughout this time of fundamental change, such as the need for high-calibre leaders. It’s this requirement for leadership within super funds, rather than the reform debate, that continues to drive the evolution of the educational program designed by the Fund Executives Association Ltd (FEAL). However, since the forces of change in the industry have influenced the needs of FEAL members, the association, in turn, is responding. As funds grow and consolidate, not only do CEOs need to develop their leadership skills, but departmental heads, such as the people running investment, distribution and operations teams also need to consider their competencies as leaders. They may have specialised knowledge in their professional fields, but they must also know how to manage people and think strategically about how their team can deliver better outcomes within the organisation. “They need to develop a breadth of skill which would equip them for leadership within the larger organisations their funds will become,” says Michael Baldwin, CEO at FEAL.
“In addition to being a very competent CIO or governance manager, they need broader skills, [and] a lot of this involves teaching people to become a leader.” “Our specialisation isn’t in super. It’s in leadership.” FEAL’s programs seem to be striking a chord within funds. Its masters in organisational leadership program – which is run through the Melbourne Business School and covers topics such as managing human capital, ethics and governance, and mergers and acquisitions – has steadily attracted an increasing number of students over the years. In 2008, 18 members enrolled; this year, FEAL is processing 30 applications, from CEOs, CIOs, COOs, finance and compliance specialists, relationships and products specialists, and marketing specialists, among others. The association’s rate of membership growth has also steadily increased in recent years, from 5 to 7 per cent. “We realise we have a finite membership pool.
Our goal is to reach all of the potential leaders in each fund,” Baldwin says. “We’ve probably covered every type of direct report from CEO down. And that’s ideal, because it means we’ve got a broad diversity of experience of views coming to the table.” This diversifies FEAL’s membership pool, delivering more well-rounded feedback on its programs and suggestions for future educational courses. It also means that executives rising through the super industry ranks, say, from an administration team to the executive ranks, are better equipped to lead funds with complex operations. Fund mergers have caused some attrition among its membership, but bigger funds require leaders at different levels of the organisation, Baldwin observes. He points out that Westscheme executives will probably continue to participate in the programs after their offices become a WA subsidiary of AustralianSuper in July. FEAL’s exclusive focus on leadership, rather than the work of managing superannuation, means it does not lead industry action on matters such as SuperStream. Baldwin recognises that larger associations, such as AIST, the FSC and ASFA, have the resources to react to big changes in policy. “I see them as collaborative organisations, rather than as competitors.” He acknowledges that AIST’s new governance focus edges into FEAL’s leadership terrain, but says the newcomer’s focus is primarily vocational: hands-on skills can be best developed by participating in AIST programs, but “if it’s about leadership and aspiring to other roles in the industry, they should be doing my program”.
