One of the key differences between running the largest division of National Australia Bank and Australia Post was the shift in focus from managing risk to transforming an entire business model.
Ahmed Fahour was appointed chief executive of Australia Post in 2010, having spent five years at NAB. He is also a former management consultant with BCG, and in early October it was announced he had been appointed chief executive of consumer finance business Latitude Financial Services.
“Risk management is a critical capability in being able to run a bank,” Fahour says. “Yes, risk management’s important for consulting. Yes, it’s important for Australia Post, but it wasn’t … the single biggest issue. In the case of Australia Post, literally its core business for 200 years was [going] extinct.”
Executives coming from a different industry have the benefit of not carrying any baggage, allowing them to look at a business unencumbered. On the other hand, a lack of knowledge and corporate history can make a restructure potentially dangerous.
