Friend,

Good afternoon my friend.

Last week I introduced you to a leadership blind spot, why it happens and how to avoid it.

Well, this week’s blind spot is outdated mental maps. Our mental maps are how we think about the world, most particularly “community standards”. Just ask The Royal Family, or anyone you think might be frozen in the past attitudinally, what happens when your idea of the world, and what is okay, becomes outdated.

Our “mental maps” often reflect how the world was when our map was drawn, not how it is today or tomorrow.

When we and our leaders navigate with outdated maps, we misread the terrain.

Cancel culture is a good example of why we should keep updating the software between our ears. Take Melbourne Cup and the Spring Racing carnival. The AFR wrote a great name-dropping weekend piece about Derby Day saying it’s fine for sports stars, influencers and gambling industry types but big business has by and large boycotted racing. The Fin smacked human rights advocate and former Socceroo Craig Foster (Fozzie) for rocking up. Surely, he cares little for animal rights, the AFR suggested. Racing is on a losing streak for reasons of animal welfare and problem gambling.

Will the Grand Prix, gymnastics or golf be next? There are plenty of reasons to cancel them. Excess consumption including of fossil fuels, training children so hard their growth is arrested are just two.

The “so what” is to update your map frequently or get others to help create new maps. Here’s how to counter having outdated mental maps:

1. When the map disagrees with the ground, believe the ground. 

Don’t just communicate, also listen and watch for reactions. Audience behaviour, attitudinal research and good old-fashioned listening tell us what’s really going on, on the ground.

2. Update your assumptions frequently 

Audience, regulator and community expectations are constantly morphing. To stay alive in the reputation game we have to keep up, and start predicting “next”.

3. Consider a reputational radar so you’re getting live information 

Special media and media give plenty of cues about “what people think” and where they’re headed next.

On our radar

Policy and regulatory developments that may shape your risk or return

ASIC targets research houses and licensees over $1 billion fund collapse

ASIC has launched landmark legal action against InterPrac Financial Planning and ratings agency SQM Research over their roles in the collapse of the Shield First Guardian fund, which left 12,000 investors facing almost $1 billion in losses. The regulator alleges failures in due diligence, product governance and ratings oversight.

ASIC outlines 2026 enforcement priorities

ASIC has released its 2026 enforcement priorities, naming misleading pricing practices, poor private-credit conduct and widespread financial-reporting failures as key targets. The regulator also flagged closer monitoring of unlisted funds and research providers following recent collapses.

CSLR levy surges to $137.5 million, with more to come

The CSLR’s initial FY27 levy has jumped to over $137 million, with financial advice alone hit for $126.9 million ($100 million above its subsector cap) with the final figure is expected to rise once Shield and First Guardian losses are added.

This week's market movers

Big plays, bold bets, and (occasional) unconfirmed speculation

Australian green investment surges despite US retreat: Australian capital continues to pour into climate-aligned projects, with green, social and sustainable investments soaring from $20 billion to $157 billion in five years (including $25 billion in the first half of 2025 alone) despite a global pullback following Trump’s policy reversal.

Westpac backpays $50 million after decade-long underpayment scandal: An additional $9 million in interest and super was paid, as well as a record $800,000 contrition payment after Fair Work found decade-long payroll, governance and compliance failures across the bank.

Best,

Carden | she/her (here’s why that matters @work) 

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