Productivity crisis

Uphill: Wesfarmers is offering innovation awards to get things moving.

Wesfarmers boss Richard Goyder wishes his corporation was more innovative and had greater capacity to behave like a start-up company.

Speaking at a Committee for Economic Development of Australia lunch in Sydney last week, Goyder, who runs a diverse business empire with a market capitalisation of $36 billion, said he wished Wesfarmers was more innovative.

“We’re not bad at taking a business and making it better but not good at inculcating new ideas and making them happen,” he said.

It’s a focus for the corporation this year. Goyder is personally sponsoring innovation awards for individuals and teams. Winners will be issued shares in the group.

“We really want to get this [program] going. I think it’s critical for our company,” Goyder said.

He called on government to do anything in its power to support innovation in private enterprise, from research and development incentives, to a more assertive approach to productivity improvement.

Goyder feels Australia is at great risk of becoming uncompetitive as a nation.

“We’ve got a big productivity challenge in front of us because of the benefits we’ve had in this economy over the last couple of decades,” he said.

“There’s going to be continuing pressure on costs particularly power, fuel and construction. And unfortunately a lot of policy making is short term because of the political situation we’ve got.”

Goyder walked away from a Davos forum in Switzerland earlier this year marvelling at how extremely well-placed Australia is to capitalise on emerging global opportunities, particularly around food, water and energy.

“If Australia can get access to markets, to supply quality food and fresh water to the world in years to come, I think they are great opportunities,” he said.

BRW

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