Why CEOs Must Address the Elephant in the Room: Leading with Courage and Clarity
Introduction: The Invisible Weight in Every Boardroom
Across Australia, from Sydney's high-rise corporate offices to regional manufacturing hubs in Victoria, one thing remains constant in leadership: the presence of the unspoken. The 'elephant in the room' is not just a metaphor—it's a real, often uncomfortable presence that can paralyse progress, hinder innovation, and erode trust. For CEOs, addressing these elephants is not optional. It's imperative.
Yet, many leaders skirt around these issues. Why? Because naming uncomfortable truths demands emotional courage, strategic clarity, and the willingness to deal with potential fallout. But make no mistake: a CEO's willingness to confront the elephant is what separates average leaders from transformational ones.
This article explores the importance of addressing the elephant in the room, why it matters now more than ever in the Australian business context, and practical ways leaders can begin tackling hard truths with confidence and compassion.
Chapter 1: Understanding the Elephant
The 'elephant in the room' is an issue that is obvious to everyone but remains unspoken. It is often uncomfortable, complex, or politically charged. It could be a toxic executive, poor financial performance, internal discrimination, a failing strategy, or mental health challenges at the leadership level.
In organisations, elephants thrive in silence. When CEOs ignore or delay addressing these issues, it signals to staff that candour isn't safe and that leadership is unwilling to lead with authenticity. In time, the silence becomes systemic, baked into the culture.
A Deloitte study in Australia found that organisations with open communication practices experience 47% higher engagement. That statistic alone illustrates why tackling the elephant isn't just an ethical imperative—it's a business one.
Chapter 2: Why Leaders Avoid the Elephant
Avoidance is human. Even the most confident CEOs can struggle with tough conversations. Here's why:
Fear of Conflict: Many leaders worry that addressing sensitive issues will ignite conflict, damage morale, or disrupt fragile alliances.
Fear of Fallout: What if naming the issue leads to resignations? Or exposes poor past decisions?
Lack of Skills: Having courageous conversations is a skill set. Many leaders haven't been trained in it.
Cultural Conditioning: In some organisations, there is a long-standing culture of 'don’t rock the boat.' New leaders often fall into this pattern to 'keep the peace.'
Personal Blind Spots: Leaders, being human, have biases and blind spots. Sometimes, they don’t see the elephant until it’s pointed out by someone else—often too late.
But avoidance has a cost. It leads to:
Lower employee engagement
Reputation risk
Strategic misalignment
Lost market opportunities
Cultural rot
In Australia, where economic conditions are challenging, every misstep counts. Leaders must be willing to make the hard calls.
Chapter 3: Case Studies from the Australian Business Landscape
Case 1: Westpac and the AUSTRAC Breach
In 2019, Westpac was rocked by revelations that it had breached anti-money laundering laws over 23 million times. While the financial penalties were severe, the reputational damage was worse. Many industry insiders pointed to a culture that discouraged early whistleblowing and open discussion about internal vulnerabilities.
If someone at the top had addressed the elephant—an outdated compliance framework—sooner, the damage might have been contained.
Case 2: Qantas and Cultural Disconnect
Qantas, once heralded as Australia's most trusted airline, has faced growing criticism over employee treatment, delays, and outsourcing practices. While external factors such as COVID played a role, insiders argue that leadership failed to acknowledge early employee dissatisfaction and operational pressures.
Had those concerns been surfaced and addressed in leadership meetings, Qantas may have maintained stronger public trust.
Chapter 4: The CEO’s Role in Setting the Tone
Culture flows from the top. If the CEO doesn’t confront uncomfortable truths, why should anyone else?
Great CEOs set the tone for transparency by:
Regularly inviting dissenting views
Creating psychological safety in executive meetings
Rewarding truth-tellers, not yes-men
Admitting their own mistakes
Prioritising long-term trust over short-term harmony
As Abel Kalpi Nand Prasad says, "You can’t build legacy on silence. The foundations will always crack." That sentiment rings especially true in today’s hyper-connected, transparency-driven world.
Chapter 5: Practical Steps for Addressing the Elephant
Acknowledge Its Presence Start by naming the issue. "I've sensed there's tension around X" or "We haven't addressed Y, and we need to."
Invite Safe Dialogue Use structured formats like anonymous surveys, roundtables, or 'town halls' to surface hidden concerns.
Train for Courageous Conversations Invest in executive coaching and leadership programs focused on emotional intelligence and conflict navigation.
Model Vulnerability Leaders who admit uncertainty or past oversights signal to others that honesty is not just allowed, but expected.
Act on Feedback Addressing the elephant means not just listening but taking visible action. Otherwise, trust erodes.
Measure the Cultural Shift Use tools like CultureAmp, Officevibe or custom pulse checks to track openness and engagement.
Chapter 6: When the Elephant Is You
Sometimes, the hardest truth is this: the elephant is the leader themselves.
Whether due to past decisions, management style, or blind spots, the issue might be rooted in the CEO’s own behaviour. This requires extreme humility and external feedback loops. Tools like 360-degree reviews, leadership assessments, and advisory boards can surface this truth in a safe way.
True leadership means being willing to examine oneself as part of the problem.
Chapter 7: Long-Term Impact of Truthful Leadership
CEOs who regularly address difficult issues enjoy benefits such as:
Greater employee retention
Stronger investor confidence
Clearer strategic direction
More resilient company culture
Lower risk exposure
In the long run, truth builds trust. Trust builds loyalty. Loyalty builds legacy.
Conclusion: Leadership in the Age of Transparency
We live in a time when silence is scrutinised more than ever. Social media, shareholder activism, employee review sites, and whistleblower protections make it nearly impossible for leaders to hide.
But true leadership never relied on hiding. It relies on showing up, even when it’s hard. Especially when it’s hard.
To every CEO reading this: You are not paid to be liked. You are paid to lead.
That begins by addressing the elephant in the room—before it tramples everything you’ve built.
