Star's Cultural Shifts Diverge from Crown's Adjustments
The Star Sydney's Second Inquiry Reveals Struggles with Cultural Transformation
In the midst of the second investigation into the Star Sydney's license eligibility, Dr Attracta Lagan, a renowned expert in cultural transformation, shed light on the obstacles the Star Entertainment Group faced during their attempt to transform the casino's parent company. Legal concerns arose due to allegations of regulatory violations.
Remarkably, the Star fared differently from their competitor, Crown Resorts. According to Lagan, who was recently quoted by IAG, the Star exhibited a significant disparity in cultural transformation efforts compared to Crown Resorts.
Lagan pointed towards the Star's former CEO, Robbie Cooke, who played a pivotal role in raising funds and safeguarding the company's future. However, she critiqued the Star's approach to cultural transformation: "They spent a fortune on consultants but never built an organization from within and never hired someone (as an internal position) to manage any cultural change."
Lagan raised another concern about a closed culture and a "us versus them" mentality within the Star, amid the gambling regulators' scrutiny. She noted that the Star repeatedly failed to listen, as the company's culture was predominantly fueled by fear, with many employees fearing job losses.
Crucial Role of Leadership in Business Transformation Struggles
Emphasizing the importance of strong leadership, Lagan pinpointed the role of middle management in successful business transformation. She, nonetheless, noted that despite the employees' valiant efforts, the leadership was glaringly missing.
This week, allegations of records falsification emerged against the Star Sydney in connection to the second inquiry into the casino's license eligibility. Nicholas Weeks, the venues' specifically appointed manager, pointed out the "absence of leadership" as one of the reasons for the slower-than-anticipated progress of the company.
Lagan underlined the substantial difference between the Star and Crown Resorts' efforts. She explained: "Crown was in the same situation and it's managed to rebuild." To amplify this, she highlighted Crown's growth, stating that regular checks are conducted and the operator collaborates with the company to rectify various challenges, thus ensuring compliance with gambling regulators' requirements.
Star Entertainment Group's Strategic Partnerships and Collaboration
As of April 2025, Bally's Corporation entered into a AUD 300 million strategic partnership with Star Entertainment Group through convertible notes and debt. This collaboration aims to utilize Bally's operational expertise to bolster Star's business resilience and sustainability. The partnership underscores a leadership strategy that values external collaboration for successful transformation and compliance.
Crown Resorts' Ongoing Regulatory Scrutiny
Despite the lack of recent updates, Crown Resorts has faced regulatory scrutiny in the past. They have addressed governance and cultural issues to align with industry standards and expectations. However, current status updates are not available.
- The Star Sydney's struggles with cultural transformation were highlighted during the second inquiry, with Dr Attracta Lagan criticizing the casino's approach, stating they spent a fortune on consultants yet failed to build an organization from within and hire someone to manage cultural change.
- Lagan also pointed out the "absence of leadership" within the Star as a reason for the slower-than-anticipated progress, with Nicholas Weeks, the venue's specifically appointed manager, echoing these sentiments.
- In contrast, Lagan noted that Crown Resorts, despite facing similar challenges, has managed to rebuild and comply with gambling regulators' requirements, owing in part to regular checks and collaboration with the company to rectify various challenges.
- Strategic partnerships, such as the AUD 300 million collaboration between Bally's Corporation and the Star Entertainment Group, are being leveraged to bolster Star's business resilience and sustainability, underscoring a leadership strategy that values external collaboration for successful transformation and compliance.
