Paul Smith on the (r)evolution of business and economics

Paul Smith spent almost four years as head of marketing at Australian Ethical, a role in which he thrived and names as a career highlight. Since then the Sydney-based social entrepreneur has been re-imagining the way we do business and has firmly decided that business success comes from acting in the best interests of others. Yep, Paul believes nice guys come first! We couldn't agree more.

What have you been up to since leaving Australian Ethical?

Too much and not enough! First, I took a much needed extended break over the new year to spend time with family. Then, since the start of the year, I've been expanding a number of exciting new business ideas. I've also done some consulting, blogging and spoken at the odd event. Finally, I've started to write my first book! The subject matter has been a blog (Compassionomics) for over a year but I'm finally taking it to the next level. I've promised myself that it will be published this year. As simply as possible, Compassionomics is my exploration of the new economic and business models that are revolutionising capitalism around the world. Those that combine the heart and the head for greater success, however you define it.

What projects do you have lined up?

One of the most exciting projects is XY on Boards. Set to launch later this year, we will aim to create and connect the next generation of board directors. The XY stands for Generations X and Y. We believe that boards, from publicly listed and start ups through to charities and social enterprises, could benefit from smart, talented younger professions with a different mindset and skills developed in the digital age. However, this is not a mentoring or training exercise, we want our members to have an equal voice on the board. Soon we'll be working into our 70's and for the first time in history we'll have perhaps five generations working together. This means a significant intergenerational transfer of leadership and ownership, and our job is to help see this happen at board level. It's going to be a challenge but we believe that we are on the right side of history and the interest so far from all quarters has been immense.

Do you believe quotas are necessary to ensure boards are truly representative?

That's a very tough question and I'd like to answer yes and no! I'm not a particular fan of affirmative action in some cases but I do truly believe that companies are better off when they have a balanced board, whether that's gender, age, race, skills etc, so perhaps quotas are our best route if companies are not willing to do it organically. Research from overseas is showing us that companies are more successful when they have a diverse and balanced board. What we need to be careful of is that female, or younger, directors are not mimicking their fellow directors, but are bringing their authentic selves to the boardroom. If you have a seemingly diverse board but everyone thinks the same way, it won't change anything.

What advice would you give a uni graduate embarking on a career in financial services?

This piece of advice would be the same for any graduate entering any industry and can be summarised into three things. Find your purpose, seek out mentors and be patient. The financial services industry can be a hard place to thrive and so finding a good cultural fit is paramount. I've only had mentors for the past few years but they've been invaluable, so much so that it inspired me to become one myself, for students at the School for Social Entrepreneurs. Finally, be patient and compassionate to yourself. You'll going to be working for a very long time so there's no need to rush.

What has been a highlight of your career so far?

No question, Australian Ethical. The head of marketing role combined all parts of my previous work experience (I was an actuarial investment consultant before I became a marketer). I got to lead a great team and most importantly live my values through my work. The company is now a leading ethical wealth manager with a superb reputation for ethics and performance, over $1 billion in funds under management and has one of the fastest growing superannuation funds in the country.

Do you have a secret skill/hidden talent?

To be honest not really. I'm more a jack of all trades and a master of none. Sorry, not very interesting! Having said that, if you asked my friends they might give you a different response.

Is there a particular charity or cause that you support?

I'm the chair of the Jane Goodall Institute so I support them with my time. We are going through a huge transition and it's been an honour to be involved. Growing up in the UK, Dr Jane was one of my heroes. She's commonly known as "the chimpanzee lady" but she wants her legacy to be about young people taking actions that helps protect people, animals and our shared environment. I also love the work and attitude of The Hunger Project (where my wife Millie works). They're one of the few organisations I've seen that I believe will actually achieve what they seek to, that is, end world hunger. Most charities could learn a lot from their journey over the past five years and they have definitely influenced my view of what's possible in this world.