Telstra study finds missed revenue due to weak networks

Research by Telstra has revealed that a lack of professional networks amongst senior leaders in large Australian organisations could be resulting in missed revenue opportunities of around AUD $53 billion annually.

The Telstra Return on Connection report, conducted by YouGov, highlights the significance of human connections for leaders, their organisations, and the industries they support. The research indicates a substantial opportunity for improved collaboration among leaders dealing with complex challenges.

The survey involved over 1,000 senior leaders from large businesses and public sector organisations. It was found that one in three leaders do not maintain professional networks outside their organisation. Organisations with highly connected leaders demonstrated an average 5% higher revenue growth compared to those with fewer connections.

The report suggests a significant growth gap amounting to approximately AUD $15.5 million in lost opportunities per organisation with lower connected leaders in the past year, translating to an estimated AUD $53 billion lost across all large Australian organisations.

Telstra Enterprise Chief Customer Officer, Peggy Renders, commented on the findings, "Connection is in our Telstra DNA, it's what we do. Our networks connect Australia - and our incredible country to the world. But it's people that give purpose to technology, and it's the connection that our connectivity enables that we are so passionate about. We see the power of connection, in all forms, as vital in strengthening and evolving Australia, our businesses and our industries."

Ms Renders added that the research underscores the value that leader-to-leader connections bring in terms of enhanced problem-solving and innovation. She said, "We asked Australian leaders about what's keeping them up at night. As you'd expect, it's a heavy list of challenges, with rising cost pressures, driving innovation, implementing new technology, short term vs long term goals, and sustainable work practices rounding out the top five."

One of the surprising findings was that many leaders are not collaborating with counterparts from either their own or different sectors on these pressing challenges, despite 96% believing that enhanced connections could aid in tackling them.

Ms Renders stated, "What's more, our research found that higher levels of leader-to-leader connection leads to higher levels of new and innovative ideas being injected into an organisation."

The study revealed that nearly half of the leaders who maintained daily connections with external networks reported generating new or innovative ideas six or more times in the past year.

In terms of industry-specific findings, leader-to-leader connections were more prevalent in the manufacturing, construction, and financial services sectors, while lower levels of connection were noted in mining, retail, and the public sector.

Despite these challenges, a significant number of leaders expressed a desire to enhance the quality and frequency of their interactions with peers, with 93% of respondents willing to share challenges and opportunities faced by their organisations.

In response to the findings, Telstra is launching the Return on Connection initiative aimed at facilitating forums for leaders from various industries to collaborate on the key challenges identified in the report, such as driving innovation and implementing new technologies.

Ms Renders remarked on the importance of meaningful connections, "In today's super-speed society so many connections are often one-off or tactical. This doesn't bring people closer, it doesn't build trust or take a relationship to a strategic level."

She continued, "Throughout my career it has often been peers working in completely different industries – or countries - that have helped bring diverse thinking to challenges. And that's certainly been the case over this year as we've worked to reset our enterprise business around our customers and Australian industry and government."

The Return on Connection forums are intended to unlock the value of diverse perspectives across similar challenges faced by industries and governments in Australia, enabling business leaders to connect, share innovations, and learn from each other.