Telstra’s most recent report reveals an urgent call to action: fostering stronger connections among senior leaders in Australia’s business and public sectors could unlock a staggering $53 billion in annual revenue. The Return on Connection report, conducted by YouGov, highlights that one in three leaders across large Australian organisations lacks a professional network outside their company – a gap that’s potentially costing organisations an average of $15.5 million per year. With 40% of female leaders without external networks (compared to 30% of male leaders), the findings shed light on a missed opportunity that’s more than financial; it’s a chance to drive innovative solutions, collaborative growth, and, ultimately, industry-wide transformation.
A $53 billion opportunity
Telstra’s research quantifies, for the first time, the financial impact of leader-to-leader connection. For organisations with well-connected leaders, revenue growth is, on average, 5% higher than for those with less connected leadership teams. This 5% difference translates to substantial financial implications: across Australia’s major organisations, that gap represents a potential $53 billion in revenue lost each year due to missed collaborative and networking opportunities.
The report outlines that leaders across sectors face complex challenges, from rising costs and adopting new technology to achieving sustainable practices. Despite these shared hurdles, 96% of surveyed leaders agreed that stronger peer connections would benefit them in tackling these issues. Telstra’s findings indicate that having a diverse network of industry peers encourages innovative thinking and problem-solving that go beyond the limitations of internal networks.
The gender gap in networking
A key insight from the *Return on Connection* report is the gender disparity in external networking. Female leaders, who represent a significant part of Australia’s senior leadership, are less likely than their male counterparts to have external professional networks, with 40% of women lacking these connections. This gap not only limits access to potential insights and support for women but may also contribute to broader inequities in professional development and career advancement.
Peggy Renders (main feature image), Telstra’s Enterprise Chief Customer Officer, stressed the value of connection as a powerful tool for progress, explaining that “Connection is in our Telstra DNA; it’s what we do. Our networks connect Australia – and our incredible country to the world.” For Telstra, however, the real purpose of technology goes beyond connectivity: it’s about creating meaningful relationships that drive innovation. “We see the power of connection, in all forms, as vital in strengthening and evolving Australia, our businesses, and our industries,” she explained.
Building a culture of collaboration
The research uncovered that leaders in industries like manufacturing, construction, and financial services tend to have higher external connections, while sectors such as mining, retail, and the public sector lag behind. This variance in connectivity levels raises an important question: if these connections contribute to a 5% growth advantage, why aren’t all industries prioritising cross-industry networking?
According to the report, nearly half of leaders who connect daily said their interactions with external networks led to new or innovative ideas six or more times in the past year. This data reinforces the power of frequent networking in cultivating fresh perspectives and practical solutions. Renders observed that some of her most valuable insights have come from peers in different sectors or even different countries, noting, “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.”
Telstra’s Return on Connection initiative
In response to these findings, Telstra is launching the Return on Connection initiative, a forum series aimed at uniting leaders from diverse sectors to share ideas, address shared challenges, and cultivate lasting, impactful relationships. By bringing leaders together to tackle challenges like innovation and sustainable growth, Telstra hopes to catalyse a culture shift in how Australian leaders collaborate across industries.
These forums are designed to go beyond typical networking events by fostering in-depth, cross-sector dialogues on critical issues. Leaders from different fields will have a unique opportunity to showcase their strategies, learn from one another, and ultimately spark the innovations that could fuel future growth.
With expressions of interest now open, Telstra’s forum series represents a significant step towards unlocking the collective potential of Australia’s senior leaders. Renders summed up the vision: “Through our Return on Connection forums, we hope to unlock the value of diverse perspectives on the same challenges all Australian industries and governments are facing.”
A call to connect
Telstra’s Return on Connection report shines a light on the vital role of professional networks, particularly in an age when rapid advancements require agile, collaborative thinking. The data speaks for itself: without strong external networks, leaders are less equipped to drive the kind of cross-pollination of ideas that fosters breakthrough solutions and sustainable growth. By investing in stronger leader-to-leader connections, Australia has a chance to reshape its business landscape, foster inclusivity, and bridge the gender networking gap.
In an economy where connection is often undervalued, Telstra’s findings offer a bold reminder: the value of human-to-human interaction goes beyond the social – t’s a foundational driver of both innovation and success. Through the Return on Connection initiative, Telstra aims to turn this research into real-world change, inviting leaders to bridge the gaps that separate industries and bring Australian businesses closer together.