Suite Talk: Christine Holgate

Set the scene for us: What was the situation at TGE on your first day and what dynamics were you exploring that both excited and worried you about the role?

Adrian Loader, our chair, kept sending me folders and although I resisted, I eventually read them and got drawn in. My confidence in him and private equity firm Allegro Funds influenced my decision to join, along with the team inside the business. Two nights before we got the keys, Adrian and I realised we still didn’t know the full extent of the company’s losses. The company had been great five to seven years ago, but had faced declining revenue and challenges since. Labour turnover was 37 per cent and customer NPS (net promoter score) was shockingly -52. On my third day, at my first board meeting, we committed to tying 40 per cent of our leaders’ incentives to customer NPS.

Once you started, how did you get to know the needs of the company and its people?

In 2020, the company faced two cyber attacks, a sale process and IT changes, leaving employees exhausted by the time I joined during the COVID-19 lockdown in September 2021. With 15,000 people across 146 facilities, I couldn’t visit in person, so we set up Teams meetings with small groups from each site. We asked three key questions: What do we need to grow the company? What should we stop? What must we protect? We held more than 100 meetings in the first 90 days and surveyed 23,000 customers and stakeholders to settle the organisation and start the turnaround.

You’ve emphasised internal confidence and addressing staff turnover as key metrics. How important was it for you to establish that from the start?

I had just been through something very difficult and felt pretty disrespected. [Christine Holgate resigned from Australia Post after facing intense scrutiny over executive bonuses, which led to a public and parliamentary controversy. A subsequent parliamentary inquiry cleared her.] When you go through an incident like that, it makes you more conscious of ensuring people feel respected and heard, especially when you've been silenced. One thing I was determined to do was make sure employees felt they had a voice in this journey. We can always improve, and I’m not saying we’re perfect — we’ve still got a long way to go — but as a leadership team, we make it a point to show up. Actually going into their facility, standing on the concrete with them, talking to them and allowing them to ask any question is really healthy. It helps maintain that open, two-way culture.

How did that challenging period during the public inquiry into AusPost shape your leadership philosophy and approach as TGE CEO?

When I joined, it was almost the perfect timing. I’m naturally optimistic and focused on growth. After experiencing trauma, you can’t forget what happened, but you can learn from it. The key lesson for me is not whether bad things will happen — they will — but how you rise and conduct yourself afterward, as that’s what people will remember.

Looking back, what advice would you give your younger self as a first-time CEO?

Early in my time at Blackmores, something went wrong and it was all over the media. I felt overwhelmed and called the chair Marcus [Blackmore], asking him to come back from his holiday in Italy. He just said, “No, you’ll cope” and hung up.

It must’ve taken a lot to make that call.

It did. It was around 3am and I lost confidence in myself. But after some sleep, I woke up with a plan and called him back to confirm I could handle it. The lesson for first-time CEOs is that challenges will shake you but remember, you were hired for a reason. Trust your instincts and deal with problems as they come. What matters is how you navigate through them.

How do you plan to lead TGE in ESG, especially considering the challenges in the transport industry?

We want to be a global leader in sustainability and our decisions reflect this. A big cost decision was our partnership with ARENA [the government’s Australian Renewable Energy Agency, which funds renewable solutions]. Heavy transport accounts for about 20 per cent of carbon emissions, so we’re conducting Australia’s largest trial of a heavy electric logistics fleet, with 60 vehicles — 36 from Volvo and 24 from Daimler. It’s their largest order of this type. Without ARENA, we couldn’t have done it — and even with their support, it’s a negative ROI due to the high vehicle costs and lack of charging infrastructure in Australia. But if you’re committed to ESG, you have to take these risks.

Our efforts, like the FIFA Women’s World Cup and the ARENA partnership, have reshaped our brand, earning us recognition as a sustainable leader. Our relationship with Commonwealth Bank has also strengthened customer trust, validating our ESG strategy and finances. 

But it’s not just about carbon emissions — diversity is also crucial. On day one, all 70 leaders I spoke with were white males, highlighting a lack of diversity. Ensuring respect for cultural diversity is important to me, especially since our drivers often reflect new immigrants. Now, a third of our executive team is female, including a Sri Lankan woman whose appointment was celebrated by many in the organisation. This diversity, along with our efforts, has strengthened our brand and built trust with customers. 

What is your response to those in the corporate community who dismiss ESG initiatives as a passing phase? How do you counter the view that it’s just a tick-the-box exercise?

While some don’t believe in ESG principles, I always remind them that our major banks have committed to the Paris Agreement, obligating them to address carbon emissions and support the UN’s Sustainable Development Goals. The cost of capital is increasingly tied to ESG performance, especially in Europe and the US, and this trend is growing in Australia, too. Customers and employees are prioritising ESG, making it a key factor for businesses.

Even if leadership isn’t fully convinced, the public is, as seen in the last election. Lastly, as I reflect on the legacy we want to leave, I believe it’s crucial to leave the company in a stronger place, respecting its 135-year heritage and ensuring it’s better than what we inherited.

This interview has been edited for length and clarity.