Part One: The changing climate of leadership: Why courage, clarity and purpose matter more than ever

“Management is doing things right;
leadership is doing the right things.”
— Peter Drucker

Doing the right things has never felt more urgent — or more complex. As we confront a worsening climate crisis, exponential technological change and growing distrust in institutions, the kind of leadership we need isn’t defined by title or charisma. It’s defined by courage, clarity and a deep commitment to long-term value — not just for shareholders, but for society. That kind of leadership can no longer be defined as unusual — it’s now essential.

Around the world, we’re witnessing a rise in short-termism — often fuelled by political polarisation, populist rhetoric and power plays dressed up as strategy. Too many leaders are pursuing near-term advantage at the expense of long-term resilience. The consequences are already evident: Eroded trust, divided societies and a lack of coordinated action on undeniable issues set out in the Sustainable Development Goals (SDGs) that demand global cooperation.

Against this backdrop, business leaders can — and must — step up. According to GlobeScan’s 2025 report, 71% of Americans believe CEOs should speak out about the importance of addressing climate change, and 67% say CEOs should publicly defend diversity, equity and inclusion (DEI) initiatives. This support spans political and generational lines — a clear signal that society increasingly expects business to lead where others are falling short.

There’s a competitive dimension too: The most admired and resilient businesses today are those that are actively engaging — not just through CSR or branding, but through their core purpose. They’re embedding sustainability and social impact into how they govern, operate and grow their businesses — and they’re reaping the rewards in talent attraction, customer loyalty, innovation and long-term performance.

Business leadership today requires more than operational excellence; it demands a steadfast commitment to values that endure beyond election cycles and quarterly earnings. Over the past two decades, I’ve seen that the most successful — the most effective and most admired leaders — are those who align their organisation’s purpose not only with their commercial objectives but also with the needs of the societies they serve and are a critical part of.

In next week’s follow-up, I’ll explore what courageous, purpose-led business leadership actually looks like in practice — from building diverse ‘teams of teams’ to navigating the ethical use of AI. These are the principles I’ll also be unpacking during London Climate Action Week, where I’ll be speaking at a live online session arranged and hosted by my friends at PURE Value 360.

Date: Tuesday 24 June
Time: 9:00am BST
Topic: Climate Action: The Role of Business Leadership
Where: Online, hosted by PURE Value 360
[Link to follow]

When is “She’ll be right” not alright?

In New Zealand’s business circles, I’ve noticed something that’s simultaneously both refreshing and, at times, a little risky: A culture of radical informality. Some people show up to business events dressed for a BBQ. They speak with a directness that would raise eyebrows in other parts of the world — the F-word and even the C-word flow as freely as a morning Flat White.

This informality is often worn as a badge of authenticity. It reflects a certain honesty and a no-nonsense attitude that’s part of New Zealand’s DNA. It’s the mark of a culture that values plain speaking over corporate jargon and personal relationships over rigid hierarchies. In a country as small and interconnected as ours, that directness can cut through bureaucracy and build trust quickly. There’s a refreshing clarity in not putting on airs or relying on carefully rehearsed scripts. But it also raises a question: How does this culture of informality shape how leaders show up — and how their purpose, and the purpose of their organisations, is perceived?

The recent move by Christopher Luxon’s government to ban gang patches in public places is a vivid reminder that symbols matter. These patches aren’t just scraps of fabric; they’re powerful markers of affiliation and influence. They project a certain identity and claim a kind of social territory — whether that territory is real or reputational. The ban itself speaks to the power of these symbols to shape perceptions and, ultimately, behaviour. It’s a lesson for all of us about the signals we send — and the influence they hold.

In the world of business, leaders have their own versions of these symbols. It might be the clothes they choose to wear to a meeting, the language they use in an email, or the stories they tell to demonstrate the authenticity of their company’s purpose. These small, everyday choices are what build — or erode — trust.

We’ve seen it play out recently at the highest levels of leadership. In a city that many aspire to see as “world-class,” the choice of words — especially when laced with expletives — isn’t just a slip of the tongue. It becomes part of the leader’s brand. It signals not just what they’re about, but what they think the city stands for. Just as a gang patch can send a message of power and defiance, a leader’s careless language can send a message of indifference or disrespect — whether intended or not.

In my first book, I wrote about Gerald Ratner, the British businessman who famously described his own products as “total crap” — a throwaway line at a business dinner in 1991 that instantly wiped £500 million (NZ$1.13 billion today) from his company’s value and pretty much ended his career. It’s a cautionary tale that underlines a simple truth: In leadership, how we present ourselves — the signals we send — matters. Because leadership is influence, and in a small, diverse, multicultural society like ours, that influence is often amplified.

Where many voices and perspectives meet, the symbols we choose to adopt — and the standards we set — take on even more significance. And when the leader’s personal brand overshadows the organisation’s purpose, it risks getting lost — or at least diluted. Because purpose isn’t just a line in a corporate statement or a nod to a trend. It’s the measure of how we show up in the room, how we respect the people we work with, and how we balance the commercial and social roles many people expect from businesses and organisations today.

“She’ll be right” absolutely has its place in this country’s culture — a certain resilience, an ability to keep perspective. But when it comes to leading an organisation with a purpose, “she’ll be right” can be a dangerous shortcut. Because leading an organisation that stands for something bigger than itself requires more than optimism — it demands clarity, intention, and a willingness to hold ourselves to a higher standard. Because in the end, “good enough” is never enough for leaders who want to build businesses that endure.

So yes, the way we show up — from the words we use to the presence we bring — matters. Because in business, as in life, how you show up is how you’re remembered.

Budget Week reminder: Vision first, spending second

This week, all eyes are on the numbers in New Zealand.

As the Government prepares to announce the national budget, it’s a timely reminder for business leaders — both large and small — that the discipline of budgeting only makes sense if you first know what you’re trying to achieve. A budget is not a vision. And it’s certainly not a strategy.

It’s a tool.

The challenge governments face is the same one facing many businesses: Every line item has a lobbying constituency. Defence or education? Infrastructure or mental health? Climate adaptation or economic productivity? The answer, unfortunately, is always “yes.” But “yes” without alignment is how we end up with ballooning costs and underwhelming results.

Everything costs. So what counts?

In business — as in government — trying to make everyone happy leads to incoherence. You end up managing money instead of managing progress. That’s why purpose, when used properly, is a vital financial management tool.
As Larry Fink, CEO of BlackRock, reminded shareholders: “Purpose is not the sole pursuit of profits but the animating force for achieving them.” When purpose is clearly articulated and embedded, it helps leaders make tough calls — not based on popularity or proximity, but on alignment.

This is where governance comes in. Businesses need a system — not a slogan — that enables purpose to live at the heart of decision-making. One that links purpose with operations, brand and investment priorities. When leaders adopt such a unifying framework, it becomes much easier to make confident financial choices. Not because everything is easy — but because everything is intentional.

If it’s not aligned, why fund it?

In my work with clients around the world, I’ve often found that 15–25% of internal expenditure — marketing budgets, ESG reporting, even product innovation — is misaligned with the business’s real direction of travel. Not maliciously. Just habitually. Without a Single Organizing Idea (SOI) to challenge assumptions, budgets become backwards-looking. They reward inertia, not intention.

That’s why investment in strategy isn’t a one-off exercise. It’s a system. Like the public purse, your business needs an active feedback loop between ambition, allocation and accountability.

And that requires more than values on the wall. It requires a governance mindset—one that ensures your vision isn’t just visible, but viable. A shared understanding that helps boards and leadership teams ask: Does this decision move us forward? If not, why are we investing in it?

Purpose is not a luxury — it’s the lens

Some might argue that in tight times, purpose must take a backseat. But as McKinsey has repeatedly shown, companies that integrate purpose into their core operations see stronger financial resilience and long-term returns. In fact, their recent global survey found that “companies with a strong sense of purpose outperform the market by 5–7% annually.”
In uncertain times, the best investment any business can make is in clarity. Clarity of vision. Clarity of governance. Clarity of spend.

Governments might struggle to balance the books — because everything and everyone needs something. But your business doesn’t have to. You get to choose. And with a coherent governance model that aligns strategy with purpose, you won’t just get through budget week — you’ll be positioned to thrive long after it.

So here’s the question: What’s guiding your decisions? And is your budget aligned with it?

Why Purpose Still Matters — More Than Ever

Today marks a new chapter for Neil Gaught & Associates as we officially open our Auckland office. It’s a proud moment — but also a timely one. Around the world, ESG investing is faltering under political and regulatory pressure. Many companies are rebranding, retreating, or quietly dropping sustainability language altogether. Some are wondering whether “purpose” still matters in business.

It does. In fact, I’d argue it matters now more than ever.

The reality is that while political winds shift and public sentiment ebbs and flows, the underlying challenges facing humanity — climate change, inequality, technological disruption — are not going away. Nor are the growing expectations from employees, customers, and investors that businesses will help tackle these challenges, not just exploit them.

What’s needed is not louder slogans or bigger promises. What’s needed is action — purposeful, focused, embedded into the way businesses operate and grow.

That’s why at NG&A, we have always believed in a different approach. Purpose isn’t an add-on. It isn’t a marketing tactic. It’s the foundation of strategy, brand, operations, and governance. It’s the single idea that pulls everything together and gives a business not just direction, but momentum.

Purpose done properly doesn’t just make you feel good. It makes you fitter, faster, and more resilient — because it sharpens decision-making, aligns teams, and builds long-term value you can stand behind.

Of course, the idea of purpose has been misused and misunderstood over the years. Some companies treated it as a slogan. Some saw it as a side project. And yes, the backlash against ESG shows that trust must now be re-earned, not assumed. That’s fair. But it doesn’t change the deeper truth: businesses that can clearly articulate why they exist — and align their operations accordingly — will be the ones that thrive in the long run.

As we start this new chapter in New Zealand, our commitment is simple: to help businesses cut through the noise, stay true to what really matters, and build success that lasts.

Purpose is not a trend. It’s the core.