As many of us race toward the July 1, 2025 reform deadline, it's important to remember that this is just the beginning of the journey to transform Australia's aged care system into one that is sustainable and centred on the rights of older people.
To succeed, our leaders need to be future-fit and prepared to go the distance—ready to navigate the unprecedented pace and scale of change we've never seen before.
This level of change is being driven not only by the need to adapt services but also by a broader ambition—many leaders are using this moment to reimagine their organisations for a more consumer-directed future. The scale is highlighted in the State of the Sector report from the end of 2024, which outlines provider intentions for this year:
- 84% of providers believe the new requirements will put a greater strain on the sector
- Two-thirds of aged care providers require significant changes to their core services
- One-third are anticipating an acquisition this year and
- Half plan to expand their business models in the next 12 months—to provide a greater continuum of care.
This level of change can either be motivating or threatening for people. For change to be motivating, leaders need to be out in front setting a positive direction and empowering their teams to co-create change that will ensure it’s embraced. Otherwise, if a change is threatening then front-line leaders perceive it as being ‘done to them’, left feeling like they have no agency and they will likely resist it.
To ensure leaders are ‘future-fit’ to deal with this change they must be ready to lead transformational change - make changes to every part of the service delivery model, at the same time as doing their best to navigate everyday demands. We call it ‘re-building the plane as you fly” and it demands a whole new set of leadership competencies and ways of working.
It certainly demands a mindset shift. ACQSC recently highlighted that ‘to lead effectively during times of disruption, complexity and transformation, leaders are not … adopting new mindsets and managing their own and collective capacity’. This is lead [ing] in a way that shapes and steers [the collective effort] of organisations to align with purpose, deliver on their promise and …reflects the needs of all stakeholders, including employees, older Australians generally and consumers’ (ACQSC Leading the Transformation 2024).
With leaders already overwhelmed, developing them can’t be about adding more to their plate. This is where traditional leadership development commonly falls short, as it’s not oriented around real work:
- It ignores how leaders learn - so much of the learning is lost. Research shows that 90% of learning happens with peers in the workplace—not in a classroom. And if new knowledge isn’t applied within 48 hours in the workplace, it’s lost.
- It’s not relevant enough as it doesn't reflect real-world challenges. Most leadership programs use fictitious case studies or hypothetical exercises that feel disconnected from the challenges leaders face daily. Without a direct link to their organisation’s transformation efforts, learning doesn’t stick
- It doesn't allow leaders to take immediate action. Learning needs to translate into action. Too often, programs focus on theory without helping leaders with tools and guides to apply what they’ve learned to real challenges.
To truly prepare leaders for the scale and pace of change ahead; we need practical leadership development, grounded in real-world challenges, and designed to deliver outcomes from day one. This is where a blended, ‘learning-by-doing’ approach comes into play, combining classroom learning, online skill bites, and real-world scenarios and challenges. Recent AHRI research shows that building leadership while doing real work, is up to 80% more effective than traditional methods and delivers up to 3X the impact.