Schmidt admits it will be "a bit awkward" coaching against many players he knows better than the Wallabies for the first time in charge of Australia in Saturday's trans-Tasman series opener in Sydney.
But New Zealand's 2023 World Cup assistant is promising to put friendship and patriotism to the side when the Wallabies strive to keep their 2024 Bledisloe hopes alive with victory at Accor Stadium.
"You have a loyalty to the group of men you're working with at the current time," Schmidt said after naming his side on Thursday.
Knowing he needs all the experience he can muster to keep the All Blacks at bay, Schmidt selected veteran prop James Slipper to become Australia's most-capped Wallaby of all time when he runs out for his 140th Test.
After making his debut in 2010 against England as a 21-year-old, Slipper will surpass George Gregan's record after being named as the replacement loosehead prop for the must-win showdown.
James Slipper (second left) is put through his paces ahead of playing his 140th Test for Australia. (Dean Lewins/AAP PHOTOS)
Fraser McReight and Hunter Paisami return to the back row and centres respectively after recovering from injury, while Nic White has replaced halfback Jake Gordon in the only other change to the starting side that surrendered 67-27 last up against Argentina in Santa Fe.
The Wallabies need to beat the All Blacks in Sydney for the first time since 2015 to keep the series alive heading to Wellington for Bledisloe II on Saturday week, and thus stay in the hunt to wrestle back the coveted silverware that's been locked up in New Zealand for 22 years.
Schmidt insisted he was too pragmatic to entertain the thought of busting the most infamous drought in Australian sport.
"Because for me it's all about process driven," he said.
"Can we get better at that and that? A couple of the things that we didn't do well in Santa Fe.
"Can we see marked improvement in those areas and can we retain some real positives?
"We were 20 points to three up after 30 minutes so the catastrophe that it was, wasn't for 80 minutes.
"What can we take out of that game and keep building? What do we really need to build our way back and do?
"The Bledisloe is a massive trophy. It's something that I know the All Blacks treasure and the Wallabies would like to treasure.
"They haven't seen it for quite some time and so it would be great if they could at least get a hand on it and keep it live to Wellington.
"But I think what we've been working on is really just trying to do elements of the game better rather than talking about anything that's outcome focused or result focused."
Noah Lolesio is involved in a strength drill during a Wallabies training session in Sydney. (Dean Lewins/AAP PHOTOS)
Knowing the All Blacks as he does, Schmidt conceded the Wallabies would need to play almost perfect rugby to bring down their arch rivals.
"I understand the firepower that we're up against on Saturday," he said.
"And I understand that having been associated with them and watching that World Cup final and playing 55 minutes with 14 players and losing by a point, where you have a couple of tries in the second half and one that didn't count.
"That's how narrow the margins were. That's how good they are. That in itself should keep our Wallaby boys on edge, I've no doubt."
WALLABIES: Angus Bell, Matt Faessler, Taniela Tupou, Nick Frost, Jeremy Williams, Rob Valetini, Fraser McReight, Harry Wilson (capt), Nic White, Noah Lolesio, Marika Koroibete, Hunter Paisami, Len Ikitau, Andrew Kellaway, Tom Wright. Reserves: Brandon Paenga-Amosa, James Slipper, Allan Alaalatoa, Lukhan Salakaia-Loto, Langi Gleeson, Tate McDermott, Tom Lynagh, Dylan Pietsch.
3°C