Author: Rachael Glasgow

Like the rest of the world, Australia is facing a skills shortage. This is highlighted in the scarcity of skills required by the green economy and in WA, this is complicated by a heavy reliance on the fossil fuel sector.

To harness the economic potential of renewable energy and other green industries, we need a plethora of new skilled workers. However, one of the greatest challenges to growing the green economy lies in bringing about effective change across legislation, political strategies, industry practices, and the organisations that form the backbone of our economy.

How do we bring about change? It starts from the top, with effective and inspirational leadership.

Skills shortages extend beyond merely increasing numbers and re-skilling blue-collar workers; leaders don’t stop up-skilling when they reach senior roles, either. Lifelong learning ensures leaders have the capabilities to lead the changing demographics of their teams, in line with new legislation, societal expectations, and using the latest best-practice thinking.

The green economy combines sustainability, environmental stewardship, finding shared value and innovative business models, and requires a range of soft skills in addition to technical expertise.

The global focus on environmental, social, and governance (ESG) requires more than an understanding of what ESG means. Leaders need to refine their skills in change management, communication, collaboration, and strategic development. These soft skills are vital for fostering innovation, collaboration, and adaptability in this dynamic landscape.

The following outlines key soft skills that are critical in the unfolding green economy:

Collaboration and teamwork

• Interdisciplinary collaboration: Green projects often involve teams from diverse fields – engineers, scientists, policymakers, and business leaders. The ability to work across disciplines is crucial for driving sustainability initiatives.
• Partnerships: Building relationships with local communities, governments, NGOs, and private-sector stakeholders is vital for developing sustainable solutions.

Communication skills

• Clear communication: Effectively conveying complex environmental issues, sustainability goals, and green technologies to both technical and non-technical audiences is essential.
• Advocacy and persuasion: Professionals in the green economy must advocate for sustainable practices, influencing policies and consumer behaviour through compelling messaging.

Leadership and change management

• Visionary leadership: Long-term thinking and transformational leadership are necessary to inspire change within organisations and industries.
• Change management: Successfully implementing green practices often requires substantial changes to business models and processes. Leaders must navigate resistance and guide teams through transitions.

Adaptability and problem-solving

• Flexibility: The rapidly evolving nature of the green economy demands professionals who can adapt to new challenges, whether they stem from policy changes or environmental crises.
• Creative problem-solving: Sustainability issues often require innovative solutions, necessitating out-of-the-box thinking to reduce waste, increase energy efficiency, or establish circular economies.

Ethical decision-making

• Integrity: Ethical considerations are vital in the green economy, balancing economic growth with environmental and social responsibility.
• Corporate social responsibility (CSR): Professionals should understand and apply CSR principles to align their practices with broader sustainability goals.

Emotional intelligence

• Empathy: Understanding the concerns of diverse groups, including communities affected by climate change, fosters trust and collaboration.

• Conflict resolution: Sustainability projects often involve balancing competing interests, such as between business profitability and environmental protection. Professionals need strong conflict resolution skills to find common ground.

Critical thinking and systems thinking

• Big-picture thinking: Professionals must grasp interconnected systems, both natural and man-made, to design sustainable solutions that consider long-term environmental impacts.
• Analytical thinking: Assessing data and trends critically is essential for effective decision-making in sustainability efforts.

Project management

• Organisational skills: Many green initiatives are complex and large-scale. Effective project management – including time management and resource allocation – is crucial.
• Risk management: Navigating uncertainties in green projects, such as regulatory changes or market shifts, requires strong risk management skills.

Innovation and creativity

• Innovative Thinking: The green economy thrives on creative thinkers who can develop sustainable products, processes, and business models.
• Entrepreneurial spirit: Professionals with an entrepreneurial mindset can capitalise on emerging opportunities in the green market.

Cultural awareness and inclusivity

• Global perspective: Understanding diverse cultural approaches to sustainability is essential, especially in regions like WA where projects may intersect with Indigenous lands and considerations.
• Inclusivity: Sustainable solutions must address the needs of marginalised communities, ensuring equitable benefits from green initiatives.

These skills complement the technical expertise required in the green economy, driving successful sustainability initiatives across sectors like renewable energy, green construction, agriculture, and transportation.

Developing essential skills for the future

The great news is that soft skills can be developed and applied immediately, whether through online courses, workshops, or larger qualifications. There is always room for growth, regardless of experience level.

If you’re interested in exploring the leadership skills you or your team will need for 2025 and beyond, call +61 8 9379 9999 to discuss your needs.

Together, we can Achieve More and build a sustainable and prosperous future for all.

Katharina Naswall, University of Canterbury and Sanna Malinen, University of Canterbury

Most workers will be familiar with this scene: a meeting that goes round and round on a topic – one that may not be important to the priorities of the company. People leave the meeting frustrated and unheard. And the whole experience is repeated the next time everyone meets.

But does this have to be inevitable? Or is there a better way to organise how we interact within teams to support effective decision making?

Team decision making is thought to be critical for organisational success. Yet there are often real challenges that lead to conflict and confusion.

In our ongoing research, we define effective team decision making as a process of understanding a complex problem, identifying alternative solutions, and finally selecting the most appropriate option to meet the team’s objectives.

For this process to work, it is essential there is a culture that promotes diversity of backgrounds and perspectives. This leads to increased experience, intelligence, competence and task-relevant knowledge, as well as better overall problem solving capacity for the team.

Creating a safe environment

But creating an environment where team members feel safe to share their thoughts and opinions, especially if they are not in line with the majority view, is often easier said than done.

This is where the concepts of psychological safety and independent thinking come into play.

Psychological safety means team members can express their ideas and opinions without the fear of negative responses. It permits challenging others – even those in a position of power.

When team members operate in an environment with high psychological safety, they are more likely to share their diverse perspectives and ideas. This leads to better decision making.

Independent thinking means team members are encouraged to share their perspectives without modifying or moderating them.

This enables them to collectively engage in critical thinking and challenge the status quo. It can lead to more innovative and creative solutions and can also foster a sense of ownership and buy-in among team members.

By supporting independent thinking, teams can develop a culture of continuous improvement and adaptability, essential in today’s rapidly changing business environment.

Feeling safe and included

Our study investigated the relationships between positive team culture factors – psychological safety and independent thinking, as well as inclusion, and their impact on effective team decision making.

Participants from 35 New Zealand-based decision-making teams completed an online survey asking them to recall a complex decision faced by their group. They were also asked whether their group demonstrated effective decision making.

We found participants who described higher levels of psychological safety were more likely to report effective decision making. For example, over 60% of those who agreed to the statement “I feel safe offering new ideas, even if they aren’t fully formed plans” also agreed with the statement “the selected solutions were of high quality”.

Feeling psychologically safe and able to communicate without fear of negative consequences is important for effective decision making.

Effective decision making was also more likely when team culture encouraged independent thinking. This suggests that to function effectively, teams need different perspectives to improve how information is processed and complexity is addressed. This is further enabled by a psychologically safe environment.

Our findings related to inclusion were mixed and dependent on how it was defined. When inclusion means the appropriate participation of team members in the decision-making process, it was associated with effective decision making.

But when inclusion was defined as being “perceived as an esteemed member of the group and belonging”, it was not significantly related to effective decision making.

So perhaps feeling “truly part of the team” is not essential, so long as team members are brought into the decision-making process whenever they can add value.

We also found longer tenure within a particular team was positively associated with effective decision making. Familiarity with colleagues has been shown to be especially helpful in ambiguous, uncertain and changing work environments.

Understanding team dynamics for better results

Our study shows both psychological safety and independent thinking are important for effective team decision making.

Leaders play a crucial role in promoting psychological safety within their teams. They can model behaviours that support psychological safety by exhibiting vulnerability, being authentic, and being willing to listen and discuss new and innovative ways of doing things.

It is essential leaders make creating a positive team culture a priority – one that fosters psychological safety and encourages team members to share their unique viewpoints.

Leaders can do this by:

1. Following an effective decision-making process. This involves considering the team’s objectives, understanding the problem or opportunity being addressed, applying a range of perspectives, considering more than one potential solution, and selecting solutions that are best aligned with the team’s objectives.
2. Fostering psychological safety by having a shared set of values and a clear vision to support constructive discussion. Encourage curiosity instead of allowing defensiveness, and frame decision making as a team sport – not a win (or loss) for the individuals whose ideas are supported (or discarded).
3. Supporting independent thinking and expression by allowing team members to share their view before they are exposed to the views of others. This could involve a poll, or pre-meeting written contribution. Leaders should also avoid unduly influencing team members by sharing their view first, or by very narrowly framing the scope for team discussion.

Following this approach, leaders can unlock effective decision making and improve overall performance – banishing unproductive team meetings for good.

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The research presented in this article was conducted by Story Dealy Cottrell as part of her MSc thesis, in collaboration with Lloyd Mander of DOT Scorecard

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Katharina Naswall, Professor of Organisational Psychology, University of Canterbury and Sanna Malinen, Professor of Organisational Behaviour, University of Canterbury

This article is republished from The Conversation under a Creative Commons license. Read the original article.