Richmond Football Club president Peggy O'Neal says good culture will lead to success. Here's how the AFL legends plan to maintain their edge.
Something changed in 2016. In the hallowed halls of a long-standing, beleaguered sporting institution, there were angry fans, players and board members. A series of setbacks, including a record 88-point loss to Greater Western Sydney and a very public board schism left a tense mood around the Richmond Football Club.
President Peggy OâNeal FAICD says the Richmond Tigers endured and survived that âbad yearâ because of the groundwork it had laid well before. She announced âa thorough review of operationsâ.
âNeither myself, the board or our CEO will shy away from making tough calls,â said OâNeal at the time. âChange is required and changes will be made. Instability and change equals chaos; I refuse to let that happen to my club.â
Her club is hard to recognise now, with the 2017 AFL premiership under its belt, the first in 37 years, and a preliminary final appearance, albeit a loss to Collingwood, in 2018. OâNeal is certain a winning culture and ensuring financial sustainability changed the clubâs fate.
A personal mission
In 2009, the club hired CEO Brendon Gale GAICD, a former Richmond player (244 games) and head of the AFL Playersâ Association. Galeâs professional journey mirrored the clubâs â loss after loss on the field lit a fire to pursue success, according to OâNeal.
âHe came in with a mission that was almost personal: to make the place better because heâd had no success during his playing career. So it really changed and energised him,â says OâNeal, adding that energy flowed to fans who âimmediately wanted to support himâ as a much-loved former player.
The board has also demonstrated unwavering support of Damien Hardwick, now set to become Richmondâs longest-serving coach (he is contracted until 2021). Announcing Hardwickâs re-signing in March, OâNeal told fans, âOur club has built a strong and united culture, and Damien has been critical to that. He has an incredible connection to his players, is a person of great character and a wonderful coach.â
The reinvigoration driven by Gale and OâNeal was the kind of change the board wanted to see. âIf you get the culture right, success follows,â says OâNeal. That phrase is now enshrined in Richmondâs corporate strategy. âOne of the big changes was peopleâs interest in caring for one another, peopleâs acceptance that we arenât all perfect, but weâre all good people and weâre trying to be better. Those sorts of elements lead to a culture where people can more readily put their hand up and say, âI think I messed up here.ââ
The board has since engaged an ethicist on decision-making and ensuring the clubâs culture reflects a collective ownership of âthe way we do things around hereâ.
âThe boardâs role is always to set the example,â says OâNeal. âNot just by personal behaviour, thatâs important, but by the engagement with management, by how they treat issues that arise.â
OâNeal took a corporate route to football, with 20 yearsâ experience as a superannuation and financial services lawyer in the US and Australia. A University of Virginia School of Law alumni, OâNeal came to Australia in 1989 swiftly making a name for herself in corporate law circles, culminating in her recognition in the 2010â2018 editions of Best Lawyers in Australia. In a rousing speech to the club ahead of a match late in the 2016 season, OâNeal cut to the chase: âWhile not everything is science, there are some fundamentals to good decision-making and the first fundamental is to be as well-informed as possibleâ.
She says the club made an important decision: it couldnât invest in football in order to reduce debt. âWe had gotten to the point where we were risking a qualified audit, our insurers were thinking they couldnât insure us any more.
That was 2005, when I started, and I thought, âItâs not going to be fun for a really long time.ââ
Richmond management, supported by the board, took on an ambitious mantra: â3â0â75â (three finals, zero debt and 75,000 members in five years). âIt took us six years to get to that point, but thatâs about where we were when we started winning games and getting back in the finals, says OâNeal. âWe played in finals in 2013; we hadnât even been in a final in 12 years.â
The club now extols the virtues of being one of the most diversified sporting businesses in Australia. It owns and operates health and recreation business Aligned Leisure, and invests in revenue-raising partnerships such as the Richmond Institute of Sport Leadership with Swinburne University.
Forty per cent of the Richmond board is now female. âOn the Richmond board we donât even talk about gender any more,â OâNeal told The Age in March. âThe nominations committee looks for the people with the best skill set, and lo and behold, when you do that and you are open to anyone they come back with a 50-50 male/female split.â
Richmond has also met its ambitious debt reduction targets (from $6m to $2.5m between 2009â2013) by living within its means for many years before starting a fundraising campaign, says OâNeal. She concedes getting the finances right can be deemed âthe boring part of sportâ, but emphasises that itâs crucial to getting to the fun parts, âlike winningâ. In 2017, the club confirmed it was debt-free with cash reserves of $9.88m and a net asset position of $27.15m.
âWe now actually have money to invest,â says OâNeal. The club is committed to the next iteration of its administration and training facilities.
The long process to establish an operating environment the board was proud of had its ups and downs. OâNeal offers advice to sporting institutions looking to turn things around after a breach of trust or a cultural crisis. âWhen things happen that cause some of your supporters or stakeholders or shareholders to lose trust, you have to work really hard to regain that,â she says. âAnd if you still have that trust, youâve got to work really hard to keep it because it doesnât take much to go backwards. People will forgive one mistake, but if thereâs a second or a third, or it looks as if youâre taking advantage of people who canât protect themselves, thatâs a long road back to a position of trust.â
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