BFM Dec/Jan 2016 by Associated Media Group Pty Ltd

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EMPIRE OF THE SUN: How Solar Bins is changing the waste management industry

How the Director’s Institute is changing Australia’s Boards

CHU’S BOBBY LEHANE:

Delivering cultural change to create a culture of success

Bendelta Bringing about positive change

Norton Crumlin

Bringing sanity back to executive management

Simon Sorockyj Laying down the law on career management

WHY LONDON SHOULD BE ON YOUR HOLIDAY LIST BUSINESS FIRST MAGAZINE Vol 2 Issue 6 December/January 2016

SPECIAL FEATURE

ADAM SCOTT

HOW HE EAGLED HIS SPORTS CAREER

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80% In 1916, over 80% of Australia’s GDP came from products. Business theory emphasised ‘scientific management’ – eliminating the use of creativity or discretion by workers.

In 2016, over 80% of Australia’s GDP will come from intangibles, almost 100% of growth will come from knowledge work and the number driver of business performance will be innovation. All companies will be wrestling with the ultimate question in business performance – how to unlock the 80% of incremental performance that comes from discretionary effort and connect this across the company.

1,000,000,000,000,000 There are 100 billion neurons in the adult brain and one quadrillion connections between them. The human capacity for leadership, collaboration and innovation flows over 160,000 kilometres between those neurons. In a 10,000 person organisation, those synaptic pathways would circle the earth 40,000 times and create ten quintillion connections.

10,000,000,000,000,000,000 There’s your answer.

HUMAN POTENTIAL: UNLOCKED, REALISED, CONNECTED

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BFM | CONTENTS

CONTENTS REGULARS 4 Editor’s Desk 5 News 96 The Leader’s Bookshelf

Mixing business with sport

58 Four essentials for real-time customer engagement by John Timmerman

8 Great Scott! Adam Scott’s successful attitude

12 The Barca Effect

Aiming for the sun Leon Hayes’ vision for Solar Bins Australia is to change the status quo of waste management across the country.

50 Alphabet – Google’s mid life crisis or Apple iPod moment? by Paul Lin

SPECIAL FEATURE:

10 Social media lessons from the Australian Open

COVER STORY

64 5 Practices every CEO should adopt to help their business thrive by John Bowman

14 Infographic: The sport business parallel

66 Exporting to South Korea by Andrew Watson

FEATURES

72 The personal journey of an entrepreneur by Tarryn Williams

20 Volkswagen’s problems start in the boardroom

77 Eight steps to a successful BI software implementation by Stefan Crisp

22 Is IT empowering or risky business? 30 Leadership lessons from abroad by Hamish Hogben 83 Signing on the dotted line

PEER TO PEER 32 5 Qualities of Great Entrepreneurs by Jack Delosa

LIFESTYLE

38 Look out… the taxman cometh! by Mark Chapman

BUSINESSFIRST MAGAZINE

84 The new competitive edge for small business by Michael Hanrahan 89 Tips when switching to new accountants by John Corias

37 Beware when investing in off the plan property by Patrick Bright

44 Prepare for the postChristmas graveyard period by Roger Mendelson

78 How to get the deal done by Zaki Ameer

92 Hideaway – Five Reasons London should be top of your bucket list 94 Fast lane – Tesla: That new car experience

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CONTENTS | BFM

BUSINESS FIRST LOUNGE 24 Dealing with the complexities of living Great salespeople believe in their product. Likewise, great CEOs need to have faith in their company. And Bobby Lehane has great faith in CHU Underwriting Agencies. 34 Connecting top fresh director talent with board opportunities There is a dynamic fresh talent pool of directors, men and women, who have phenomenal experience, skills and capabilities and can make a real contribution at board level. Business First speaks with Kylie Hammond of the Director Institute 40 Symmetry in motion After five years of working with a large Australian recruitment agency, Craig Anderson decided to start his own business â&#x20AC;&#x201C; Symmetry HR. He speaks with Business First about the changing nature of the industry and what HR means to people. 46 The importance of finding yourself Voquest is the heart (engaging your passion) and the head (navigating the recruitment, education and training maze) of your career journey says General Manager Simon Sorockyj. 52 Finding sanity in business When a business practitioner and his client come together to form their own company as they did with Norton Crumlin, you get the best of both worlds especially in business advisory. 56 Potential creates opportunity The triumvirate of people who run Bendelta all have different skillsets, but came together to do one thing: create a business that provides strategic solutions to businesses with large flow-on effects for human potential

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34 60 The rare qualities of a CEO The feeling that mining is dead in Australia, is one that is more doom and gloom than reality, especially when you look at what Lynas Corp is doing in the rare earth sector. Business First spoke with Lynas Corp CEO Amanda Lacaze.

68 Flying High Peter Nottage speaks about Cobham Aviationâ&#x20AC;&#x2122;s rise in the aviation sector 74 Chief in charge Hamish Cameron OAM, CEO of Chief Entertainment, has led the way in creating media content. 80 Success scape Tim Buckle speaks to Business First about how he changed the perception of commercial landscaping.

86 Success is driven by simplicity Recreo co-founder and managing director Matthew Crooks speaks with Business First about how the superannuation industry can be simplified.

90 Smartline Franchising can be a profitable business decision, especially if you have the right support.

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BF | EDITOR’S DESK

A change is as good as… It has been an interesting ride putting this holiday edition of Business First together. While it’s too early to be talking about new resolutions (for some), the common thread surrounding resolutions is usually with regard to change: people making positive changes in their lives that they hope will make them happier, healthier, richer and better people in general. There has been a lot of change spoken about in this issue. These changes were not necessarily New Year resolutions, but they were implemented to effect positive change. To help people lead the lives they wanted to and to set up brighter futures. Take Bendelta’s Anthony Mitchell and Natalie Archer, who took a chance on starting up a small company in what was a relatively unknown territory to them having come from New Zealand. With the help of Natalie Ferres, who took her own chance on a fledgling business, they have built a business that by its very name spells out ‘positive change’. Then there is Luke Camilleri and Shannon Ingram. Luke gave up a career in the medical sales industry, whilst Shannon let go of his job as a bank manager to start up their own franchises with Smartline. Now they are both brokers moving to the beat of their own drums. Simon Sorockyj was lost in law and didn’t know much. Thinking aloud and falling out of touch. That is until he found EPR, now Voquest, ironically Australia’s first career management firm. So as you can see personal change has had a great effect on our CEOs and leaders in this issue. The others including CHU’s Bobby Lehane are leading businesses that they feel are changing other people’s lives. Lehane in insurance, Leon Hayes in environment and waste management, Roger Norton and Jack Crumlin in executive coaching, Kylie Hammond of the Director’s Institute which provides current and aspiring board directors with all the tools, resources and training needed to begin or expand a board portfolio; as well as access to exclusive board opportunities available nowhere else in the market. Of the others featured, we include Tim Buckle of Landscape Solutions who is proof hard work and determination can deliver success. Mathew Crooks of Super administration firm Recreo, Amanda Lacaze who has had an enormously positive effect on Lynas Corp, Hamish Cameron of Chief Entertainment and Craig Anderson of Symmetry HR. There are more leaders in this issue than ever before and they all have an informative tale to tell. And they have all effected change in one way or another. So as we draw close to the New Year, stop and take a little inspiration from them, then go ahead and make your own positive statements. We wish everyone a happy holiday and safe New Year and hope to see you all back in 2016, bigger and better than ever. Happy reading.

Jonathan Jackson Jonathan Jackson Editor, Business First Magazine

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www.businessfirstmagazine.com.au PUBLISHER Alan Hyman EDITOR Jonathan Jackson SUB-EDITOR Judy Hyman MEDIA & Khan Izaac COMMUNICATION Jake O’Donnell WRITER Daniel G Taylor DESIGN Gino Hawkins Head Office Level 1, 33-35 Atchison St St Leonards NSW 2065 Advertising enquiries Phone: 02 8416 5294 Email: bfadvertising@amgroup.net.au Subscription enquiries Phone: 02 8416 5294 Email: bfsubscriptions@amgroup.net.au Contributors Zaki Ameer, Patrick Bright, Steve Bowman, Mark Chapman, John Corias, Stefan Crisp, Jack Delosa, Michael Hanrahan, Hamish Hogben, Paul Lin, Roger Mendelsohn, Stuart Payne, John Timmerman, Taryn Williams. Associated Media Group Pty Ltd ABN 68 123 058 926 Copyright ©2015 Associated Media Group amgroup.net.au

DISCLAIMER Readers are advised that Business First Magazine and Associated Media Group (AMG) cannot be held responsible for the accuracy of statements made in the advertising. Opinions expressed throughout the publication are the contributors own and do not necessarily reflect views or policy of Business First Magazine or AMG. While every reasonable effort has been taken to ensure the accuracy of the information contained in this publication, AMG takes no responsibility for those relying on the information. AMG and Business First Magazine disclaim all responsibility for any loss or damage suffered by readers of third parties in connection with the information contained in this publication. WARRANTY AND INDEMNITY Advertisers and/or advertising agencies upon and by lodging material with AMG for publication or authorizing or approving of the publication of any material indemnify Business First Magazine and AMG, its servants and agents against all liability claims or proceedings whatsoever arising from the publication and without limiting the generality of the foregoing to indemnify each of them in relation to defamation, slander of title, breach of copyright, infringement of trademark or names of publication titles, unfair competition or trade practices, royalties or violation of rights or privacy regulations and that its publication will not give rise to any rights against or liabilities against AMG, its servants or agents and in particular, that nothing therein is capable of being misleading or deception or otherwise in breach of Part V of the Trade Practices Act 1974.

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NEWS | BF

Amber Affair raises $53,000 for Sydney Children’s Hospital Boutique beer tasting event, Amber Affair, raised $53,000 to support over 45,800 sick and injured children at Sydney Children’s Hospital, Randwick. The 14th annual event was hosted by Peter Stefanovic (pictured), journalist and presenter with the Nine Network, at The Argyle at the Rocks. The event was attended by over 250 beer lovers enjoying a night of boutique beer, cider and wine with free flowing finger food and fun competitions. The money raised from Amber Affair will make a real difference to the children and their families who are treated at the Hospital. Funds raised from the event will help the Hospital to purchase advanced new equipment; fund clinical trials and research; provide vital training for doctors and nurses; and ensure the Hospital remains at the forefront of its field to provide the best possible care for patients. The brewers were happy to be involved in the event to support such a worthy cause.

Tamie Thorn from Batlow Cider said, “Amber Affair is a fantastic event for a fantastic cause. Sydney Children’s Hospital Foundation continues to do great work and we’re stoked to be part of it and raise much needed funds for the kids.” Brewers who exhibited at the event include Young Henrys, James Squire (Lion Co), Endeavour Vintage Beer Co, Hemera Estate (Winston Wine), Batlow Cider, Stone and Wood Brewing Company, The Lord Nelson Brewery Hotel, Premium Beverages, Redoak Brewery Restaurant Bar, Rocks Brewing Company and Broken Heart Gin (HMH Beverages). The event was a success with many beer lovers and boutique brewers already eager for the 15th annual Amber Affair next year. BFM For more information about Amber Affair visit the website amberaffair.org.au To donate to the Sydney Children’s Hospital foundation, go to: www.schf.org.au/donate.aspx

Is business confidence improving? Spending by Australian businesses recorded the highest sales growth in more than seven years in September, but growth in economy-wide spending continues to slow, according to the latest Commonwealth Bank Business Sales Indicator (BSI). The Business Services sector, which includes businesses such as Office Furniture, Commercial Equipment, Electrical Parts, Computers and Computer Equipment and Software, recorded spending growth of 5.3 per cent in trend terms in September – the biggest rise since January 2008. The lift in business spending continues the recent strong growth for the sector following the government’s budget stimulus, after contracting briefly in August. However, the growth wasn’t shared more broadly across industries with economy-wide spending up by just 0.3 per cent in trend terms, after growth of 0.5 per cent in both August and July. But while annual growth of spending also eased from 7.1 per cent to 6.8 per cent, this rate still remains well above the decade-average of 5.1 per cent.

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Craig James, Chief Economist, CommSec, said the strong growth in business spending indicates the Government’s stimulus measures continue to provide a boost to businesses. “The stellar rise in business spending shows that the Federal budget initiatives are proving to be sustainable over a longer period; however this growth

hasn’t helped boost the broader economy. Still, while economy-wide spending growth has slowed, it remains well above the decade average and we’ve also seen strong seasonally adjusted growth. “With growth across a number of retail-based sectors, businesses should be feeling optimistic leading into the holiday season,” Mr James said. BFM

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BFM | NEWS

Construction is booming but needs improvement

Australia’s $300 billion construction industry is booming, with the latest ABS data revealing building approvals increased by 13.1% since August 2014, the largest annual increase on record. However, industry experts have expressed concern that this rate of growth will be hampered by an increasingly costly burden on the construction sector – contract disputes. A CRCCI study put a dollar figure to the problem stating that these disputes are costing the Australian economy around $7 billion a year, adding 6 percent to the overall cost of each project.

According to construction experts, contract disputes are a result of outdated, manual methods of processing progress claims including spreadsheet reconciliations and paperwork. “The construction industry plays a most significant role in our economy as the third largest contributing industry, so it’s important that we adopt methods to streamline efficiencies where possible to increase productivity,” said Brian Seidler, Executive Director of the Master Builders Association of NSW. To address the problem, former construction company CFO Lincoln Easton

recently launched Progressclaim.com, software tailor-made for the construction industry to process payment claims anytime and anywhere. “As we’ve seen in several recent public disputes, the archaic methods of processing progress claims are causing inaccuracies, disputes and hold-ups on the build– impacting our broader economy,” he said. In recent months, a number of legal rows over payments have led to construction being interrupted or coming to a total standstill on major public projects, such as the Perth Hospital and the Wiggins Island Coal Export Terminal. “With residential and commercial construction predicted to grow exponentially over the next few years to cater for Australia’s population boom and major infrastructure upgrading, how the contracting parties deal with various payment processes needs to be resolved,” said Mr Seidler. BFM

Women of influence Carnival Australia CEO, Ann Sherry, has been named as the 2015 The Australian Financial Review and Westpac 100 Women of Influence Awards overall winner. As part of the annual The Australian Financial Review and Westpac 100 Women of Influence Awards, Ms Sherry was recognised for her leadership across corporate Australia, as well as her significant contribution to the social and economic advancement of women. As CEO of Carnival Australia, which is the leading cruise operator in Australia and the South Pacific region, Ms Sherry restored the reputation of cruising and led the resurgence of the industry in the region. The cruise industry is the fastest growing segment of Australian tourism and now carries one million passengers a year – a milestone reached six years ahead of target. Ms Sherry was instrumental in introducing paid maternity leave into the corporate sector during her time at the Westpac Group and was influential in the creation of the innovative not-forprofit Jawun. She has also served as First Assistant Secretary of the Office of the Status of Women in Canberra and Australia’s representative to the United Nations on human rights and women’s rights. “It is an unbelievable honour to be

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named as the overall winner for the 2015 Australian Financial Review and Westpac 100 Women of Influence Awards. These awards uncover amazing talent across a range of fields and allow women, particularly young women, to visualise a pathway for success, which is so important to drive change,” said Ms Sherry. “We change the world one person, one organisation, one company at a time and it is vital that we support each other to achieve an Australia that values contribution regardless of gender. I would like to see a focus on Constitutional recognition of Indigenous Australians, reducing violence against women and challenging corporate cultures that do not recognise the value of women at every level.”

AWARDS CATEGORY WINNERS • Board/Management: Diane Grady, Board Director of multiple companies • Business Enterprise: Ros Moriarty, Managing Director, Balarinji • Culture: Janet Whiting, Head of Litigation Practice, Melbourne, Gilbert + Tobin Lawyers • Diversity: Ann Sherry, CEO, Carnival Australia • Global: Prof Jane McAdam Director, Andrew & Renata Kaldor Centre for International Refugee Law, University of New South Wales • Innovation: Prof Veena Sahajwalla, ARC Georgina Sweet Australian Laureate Fellow & Director, University of New South Wales • Local/ Regional: Prof Lesley Chenoweth, AO, Pro Vice Chancellor, Professor of Social Work and Head of Logan Campus, Griffith University • Public Policy: Pat Anderson, Chairperson, The Lowitja Institute • Social Enterprise/ Not-for-Profit: Dr Jane Burns, CEO Young and Well Cooperative Research Centre • Young Leader: Jenna Tregarthen, Co-Founder and Chief Executive Officer, Recovery Record Business First would like to congratulate all recipients. BFM www.100womenofinfluence.com.au.

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NEWS | BFM

Popular Density is Critical for Cities Densification is the key to responding to population growth, economic changes and new lifestyle preferences, according to a new report by the Urban Land Institute (ULI) and TH Real Estate. The Density Dividend: Solutions for Growing and Shrinking Cities, draws from the experience of six European cities at various stages of population change and makes clear that many cities—especially those in Europe— have little choice but to densify. If they do not, they risk becoming locked into models of development that are inflexible, unattractive, unsustainable, and ultimately uncompetitive. For cities in Europe, density is now the critical tool to realise advantage and to avoid decline. The report is the second piece of work in ULI’s density initiative, which seeks to increase knowledge of density in the real estate industry and beyond; to address the social, economic, and environmental benefits of investing in density; and to promote density as a priority for public and private leaders. This report examines current densification in six European cities and the impact of different urban tools and tactics on densification efforts. At the same time, it looks at how density can play a role in building strategies for future cycles. “By embarking on this project, we wanted to use the principles for good density outlined in our first report, Density: Drivers, Dividends and Debates, to demonstrate how cities in distinctive cycles and with different characteristics were applying them to their city development strategies,” said ULI Europe CEO Lisette van Doorn. “TH Real Estate advocates a city-level approach to real estate investment, believing that the most successful real estate strategy is likely to be city-based, underpinned by long-term, structural trends,” said Alice Breheny, Global Co-Head of Research at TH Real Estate. “This report helps deepen our own understanding of investment viability within specific cities. Although trends and drivers may point to a specific city as having potential for growth, it’s important to assess whether that city will be able to accommodate that growth via the capacity of its built environment to densify and absorb capital effectively.” BFM

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More Opportunities for the Jobs Market A number of activities are taking place at the national government level, which will have a positive impact on jobs, says Steve Shepherd, Employment Market Analyst at Randstad. “During Malcolm Turnbull’s first few months we are seeing increased business and job seeker confidence, due to how quickly he is moving in parliament to unblock legislation agreements. “His focus on startups, digital growth and innovation will have a positive impact on the jobs market. Although startups aren’t the biggest employers on their own, investment will stimu-

late growth and, with over 95 per cent of Australian businesses being small businesses, it will have an impact on the figures. In addition, investment in the startup community will bring about disruptors. As such, large organisations will have to evolve and potentially hire staff with the skills required to maintain market leading positions. “Recently the Government passed the China Free Trade Agreement, which is good news for the labour market, as it could create opportunities for jobs growth, particularly in the agriculture, healthcare and services sectors,” Shepherd concludes. BFM

MARKETING FRANCHISEES Green Chilli Marketing is launching Australia’s first franchise opportunity for talented marketers who are also aspiring business owners, to have the tools and business processes to set up their own successful business. After almost eight years of operating Green Chilli Marketing, founder Belinda Bow has created a franchise model that gives professional, Certified Practicing Marketers with the Australian Marketing Institute, a highly detailed offering to setup a business from scratch in their own area. Founder Belinda Bow said, “As far as we know, there is no other marketing franchise available on the market. There are other businesses running as a franchise setup but the marketer does not have ownership or control and no investment in the business, therefore there are no real returns apart from a consulting agreement based on an hourly rate. This is an opportunity for marketers to start their own business by building on the experience and talent of a successful, professional industry brand.” Belinda explains, “Starting a new business is a lot of hard work but it’s also exciting and rewarding. The Green Chilli Franchise model short-cuts the process by giving professional marketers the opportunity to work with a successful, established marketing brand and a framework they can make their own. They will have the flexibility to choose their own career path and varied clients, to have a family and a rewarding

career, and to bring in partners and create a unique entity and investment.” Belinda, a Certified Practising Marketer, founded Green Chilli Marketing in 2008 motivated by a desire for work to fit her life, and not the other way around. Being self-employed afforded her the opportunity to work hard and have a rewarding career, write a soonto-be-launched children’s book, be involved with a charitable organisation and also spend time with her young family. “I didn’t want to sacrifice my family life for a rewarding career or vice versa, so I’ve worked hard to create a unique model that offers a way for other marketing professionals to run their own race,” Belinda said. “What’s exciting is that franchisees can set their own parameters with regards to clients, the hours they want to invest and how they want to work, in a way that fits in with their life and its varying phases.” Green Chilli Marketing provides initial set-up support through one-on-one training and mentoring. The cost and franchise agreement include a business practices manual that helps ensure franchisees have everything at their fingertips, as well as specific marketing direction. Resources are provided on everything from how to set up your business operations, specific business improvement initiatives and building referral networks through to engaging and nurturing clients and working with contractors. BFM

BUSINESSFIRST MAGAZINE

BFM | ADAM SCOTT

GREAT SCOTT!

In Adam Scott’s Kooralbyn High School Year Book he was asked of his future ambitions. He wrote: “To be the best professional golfer in the world.”

t seems that way back in 1996, he had foretold his own future. By this stage Scott had already won the World Junior Championship. He was still one year away from graduating and was being lauded even then. The Principal of the school at the time was Geoff Mills. Mills said, “He (Scott) was determined back then and he hasn’t lost that grit and determination

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you need - not just for sport, but for life in general.” Yet golf is a hard game; perhaps the hardest of any sport to win consistently and Scott knows this. After winning the Bridgestone in August 2011 for which he pocketed $1.4 million he told Business Sports Insider that although it was a huge boost to his confidence, “Winning is something that doesn’t happen that often in golf, unlike in other sports. I mean in

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ADAM SCOTT| BFM

tennis, for example, Rafael Nadal or Roger Federer may lose in the final but they’ll have won a lot of matches along the way. In golf, winning is something I’d do less than 10 per cent of my career – I wish I did win 10 per cent, that would be a good number, but most people are lucky to win once, ever, out of hundreds and hundreds of events.” Scott has won more than once. Put it down to that winner’s mindset he had back in high school. It’s the same mindset that drives anyone who is able to excel in their chosen profession. In 2013, he won his first Masters. A feat not even his idol Greg Norman could achieve and in doing so he became the first Australian ever to win the US Masters. Norman is now a mentor and friend. After that Masters win he said of the younger protégé, “I think he’s a better driver of the

ADAM SCOTT’S VICTORIES 11 PGA TOURS 2014 Crowne Plaza Invitational at Colonial 2013 Masters Tournament 2013 The Barclays 2011 World Golf Championships-Bridgestone Invitational 2010 Valero Texas Open 2008 EDS Byron Nelson Championship 2007 Shell Houston Open 2006 THE TOUR Championship presented by Coca-Cola 2004 THE PLAYERS Championship 2004 Booz Allen Classic 2003 Deutsche Bank Championship 13 INTERNATIONAL VICTORIES 2001 Alfred Dunhill PGA Championship [SAf] 2002 Qatar Masters [Eur], Gleneagles Scottish PGA Championship [Eur] 2003 Scandic Carlsberg Scandinavian Masters [Eur] 2005 Singapore Open [Asia], Johnnie Walker Classic [Eur] 2006 Singapore Open [Asia] 2008 Commercialbank Qatar Masters [Eur] 2009 Australian Open [Aus] 2010 Barclays Singapore Open [Asia] 2012 Talisker Masters [Aus] 2013 Australian PGA Championship [Aus], Talisker Masters [Aus]

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ball than I ever was.” That’s a big endorsement. But like Norman he has had his ups and downs. 2013 was the year to remember and he worked his way up to being number one in the world. The last two years have been good with great moments and as a consequence he has dropped to a ranking of 12th. It doesn’t faze him, however. He is now in a position to play the tournaments he wants and he still goes out to win them. His attitude hasn’t changed, just the number of tournaments he plays. Still, 12th in the world is a good standing, add to that his Forbes ranking in the top 10 golfers and estimated earnings of $50 million and partnerships with Rolex, Uni QLO and Titelist and life isn’t bad. Like Norman he dabbled in business with his business interests handled by the EWM Group, which invests in golf-course design. At one stage there was talk of property development in Dubai. “That’s not happening now,” he told Business Insider. “A lot of things have changed in the past three years – there are more golf courses closing than being built. My view on business has changed. I’m best concentrating on golf.” And charity. In 2005 Scott started the Adam Scott Foundation which funds services for disadvantaged children, particularly those with autism. “I was so fortunate in my youth, given every opportunity by my parents and through government sporting programs,” said Scott. “The foundation is a way of giving something back.” THE ADAM SCOTT FOUNDATION SUPPORTS THE FOLLOWING CAUSES: Adam Scott Foundation Youth Centers: These projects are developed to provide support and guidance to young people in the community. The Adam Scott Foundation Scholarship: Initiated in 2008, The Adam Scott Foundation Scholarship is offered annually in Australia for a student to attend Griffith University. This scholarship allows the recipient to earn a Bachelor of Business and Sports Management degree with the option to complete the Golf Management Course offered by the PGA International Golf Institute. The program is specifically designed to offer a young disadvantaged person with the opportunity to achieve their desired career path in sports management that they may otherwise not have had the chance to achieve. Australia Education for Kids Program: Established in 2009 this program provided laptop computers to the children’s ward of the Royal Children’s Hospital in Australia. Adam Scott Foundation Asia Scholarship: The scholarship is offered annually and allows the recipient to earn a Bachelor of Science in Sports Science and Management at Nanyang University in Singapore. At 35 Scott is his own man. But his attitudes to life and business haven’t changed. No matter what he does, sport, endorsement or charity, he strives to be the best. And he is guided by one of his favourite high school expressions: “If all else fails, birdie the last.” BFM

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BFM | SOCIAL MEDIA

Social media lessons from the Australian Open Discover how one of the world’s largest tennis tournaments leveraged social media to generate its highest ticket sales ever.

ince 1905, the Australian Open has been tennis’ most important international Grand Slam tournament. Taking place in January each year, the Australian Open is the traditional kick-off to tennis’ premier tournament season—followed by the French Open, Wimbledon, and the US Open. WHAT THEY DID: INCREASING SOCIAL MEDIA ACTIVITY TO BOOST AWARENESS AND SALES During the Australian Open 2015, Tennis Australia— the organisation behind the tournament and driver

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of its social media campaign—took on the task of increasing tournament awareness and accelerating ticket sales using social media marketing. To achieve these objectives, the team at Tennis Australia created a comprehensive social media campaign that aimed to increase fan engagement across each of their social media profiles leading up to and during the tournament. To keep their large community engaged at all times, the organisation employs a staff of seven—six staff at the event and one overseas to keep the conversation

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SOCIAL MEDIA| BFM

going at night with their international following. Targeted social media campaigns were created on Twitter (#ausopen) and Instagram (#AOselfie) to spark fan engagement. To further build audience delight, attending fans were encouraged to print and post their #AOselfie Instagrams at the event’s photo booth, Social Shack. “Social media at the Australian Open has been instrumental in keeping our fans engaged and our sponsors happy. It ultimately provides a platform to increase interest in our sport,” says Kim Trengove, digital and publishing manager at Tennis Australia. HOW THEY DID IT The Australian Open’s social media team engaged Hootsuite to help them proactively manage their content and provide real-time interaction with their fan base. SCHEDULING AND PUBLISHING CONTENT Throughout the tournament, the team used Hootsuite to publish and track their real-time event coverage across social networks. For fixed content, such as upcoming match times and tour dates, the team used Hootsuite’s scheduling feature to upload and schedule their content in advance. LISTENING AND RESPONDING TO ENGAGEMENT The team utilised Hootsuite’s streams feature to monitor mentions of their campaign hashtags and respond in real time to fan questions, across each of their social media channels, from a single dashboard. “Hootsuite streams allowed us to closely monitor all relevant Australian Open conversations and respond to fans when required. It also allowed us to tap into other conversations where fans may not have known we existed,” says Joel Smith, social media manager at Tennis Australia.

Garbine Muguruza

Madison Brengle

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THE RESULTS: USING SOCIAL MEDIA STRATEGY TO DRIVE RECORD-BREAKING TICKET SALES By creating a strategic social media campaign, backed by Hootsuite’s publishing, scheduling, and monitoring features, the Australian Open (@australianopen) successfully grew its social media audience by 300K while also reaching record-breaking ticket sales. Throughout the campaign, the Australian Open website attracted 14.3 million unique visitors. Their Twitter campaign #ausopen generated 495K Tweets. Over 13,000 Instagram #AOselfies were printed and posted in its Social Shack photo booth. Tennis Australia, the team behind the Australian Open’s digital campaign, was also awarded the 2015 Victorian iAward for their innovative social campaign. The Australian Open’s social media team was able to achieve tangible results while using Hootsuite to: • Listen and respond to fan mentions and questions in real time • Schedule and publish tournament updates and announcements • Manage each of their social media channels from a single dashboard. BFM

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BFM | BRAND POWER

THE BARCA EFFECT The impressive numbers of football lovers who attended the International Champions Cup (ICC) earlier this year and have turned up in masses for the launch of the A-League season has Australia’s major sporting organisations asking how they can boost their own crowd numbers and what they can do to capitalise on their brands. We spoke to Jon-Michail of FIA Sports management to find out more.

hen you have the world’s biggest sporting clubs visit your shores, it is certain to attract a crowd. For the final ICC game at the MCG on 24 July, it was evident in the sell-out crowd that there is a major market for large football entities in Australia. There were some dour games in the competition, as there are in any sporting competition, yet as a branding initiative each match was a roaring success. Unfortunately, the biggest club in the world didn’t come here. Had they made it to our shores, the event would have been one of the biggest this country has ever seen (perhaps we’ll see Barcelona FC next time), however Barca’s absence, while unfortunate for fans, didn’t do much to dent their enthusiasm for football.

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Fans will see Barcelona in a different capacity in the near future and it will be a boon for football supporters and the economy. The most storied club in the world, founded in 1899 by a group of Swiss, English and Catalan footballers, is about to put its footprint down in the Asia Pacific. “Barcelona is an interesting entity in that it is owned and operated by supporters. It is the second most valuable sports team in the world and worth $3.2billion,” says FIA managing director Jon-Michail. It is also one of the most supported teams in the world and has the largest social media following of all sports teams. On Twitter alone there are 15.6m follow-

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BRAND POWER| BFM

Right: Barcelona Football Club player Lionel Messi

ers. Further accolades include the biggest number of players awarded the Ballon d’Or and a record number of FIFA World Cup players. “So you can imagine the impact when they set foot in Australia. This is a small market for them, but it has regional significance,” Jon MIchail says. “When we talk about Barcelona in the context of Australia and the changing sports sponsorship market, bringing Barcelona to the market could disrupt the marketplace by showing Australian sponsors how one team can add extraordinary value to their portfolio.” When you consider that sport today is as much about business than it is about thrilling spectators and winning championships, then backing a world-class brand is a no-brainer. Jon-Michail says Barcelona is that brand. “Barcelona offers sponsors the opportunity and flexibility that other brands can’t give them, including global recognition. That is why FIA is so excited to be working with them. “And other brands should consider this as well. To connect with FCB means the ability to build strong relationships with other partners, to work closely with sponsorship partners to deliver beyond expectation results and provide a once in a lifetime, money can’t buy experience.

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“This level of brand leverage, no matter whether you are in travel, beer or soft drink, has mess appeal in the Asia Pacific, particularly in Asian countries. If you seriously want to push your own brand, you could build ownable platforms with ready-made content from a stable of talent including Messi, Namar and Suarez. Brands like Qatar Airways, Intel, Aldi, Unicef and Nokia are have already jumped aboard the world giant in their respective regions.” Jon-Michail says Asia is the future of football. Meaning the fans of Asia are the future customers. As much as FCB has done, it is still looking at having an impact in growth markets. It is growing in the digital space, but new opportunities in Asia are hard to ignore and thus Barca is a step ahead of most other teams. Future support can be found in China and India. And when this occurs the global influence will be even bigger. The 1.81 million number of Facebook fans will multiply as will the eight million on Google plus, the 1.7 million on You Tube and the 6.9 million who follow the club on Instagram. Barca has become aggressive in Asia because numbers don’t lie and in this region, as it is anywhere in Europe, sport is a religion. “Barca will drive its digital entity to create more members. If they can extract one euro from every new fan in Asia Pacific who wants to access their website they will likely have an extra 1.1 billion in the bank – imagine what players that can buy,” Jon-MIchail says. If Australian companies can jump on board this incursion, they will access a large Asian audience that they may previously have had no access to. “Our intention at FIA is to attract sponsors to a world-class brand and create an entirely new value proposition through the social networks we have in Asia. From naming rights, to association image rights, marketing rights, digital packages, promotional packages, merchandising and special events, this brace new world present an enormous opportunity for sponsors and fans. “The ICC has shown there is a large audience in Australia and even further reach into Asia. The incumbents including AFL and NRL are now showing signs of worry that football is creeping into their market, particularly with junior supporters. Football is coming. Barcelona is coming and it is time to get on board.” BFM

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BFM | SPORTS BUSINESS

The sport business parallel New research has suggested the adage ‘it’s not what you know, but who you know’ is one to avoid in business.

etworking is seen as the way to progress a career, but companies hiring through business contacts could be harming their performance. By using the data-rich world of professional basketball researchers analysed the signings and performance of every team in the National Basketball Association (NBA) in the US from 1977 to 2011. In the paper Managers’ external social ties at work: Blessing or curse for the firm?, published in the Journal of Economic Behavior & Organization, Leif Brandes, of Warwick Business School, and Marc Brechot and

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Egon Franck, of University of Zurich, found that those teams who signed players through their managers’ contacts at his old clubs produced a lower winning percentage than those sides that didn’t do this. Far from the manager’s contacts giving them inside information it seems to have produced a negative effect on the team. Dr Brandes said: “We found teams with ‘tie-hiredplayers’ – that is those where the manager signed the player through former colleagues on the coaching staff or among the owners at one of their old clubs – win

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SPORTS BUSINESS| BFM

45.2 per cent of their regular season games, while teams without such players win 50.2 per cent of their games. And that is after controlling for a team’s budget and quality differences in teams and managers. “Anecdotally it seems firms often seek well-connected employees, but our industry-wide analysis shows the hidden costs of such hiring practices. “Pre-existing strong social ties to colleagues at a former business in the same industry are potentially very influential as they create opportunities for various deals and transactions. But our study found evidence that such external business contacts interfere with a company’s ability to select the best transaction partner.” Such was the negative result in the NBA that teams risked losing a place in the play-offs when signing a player from a side with ties to their manager as in 64 per cent of the seasons studied the five per cent fall in the win ratio would have been the difference between a team finishing eighth and ninth, just outside the play-off spots. In spite of this negative performance effect, Dr Brandes and colleagues found that the 146 active managers between 1977 and 2011 were on average 32 per cent more likely to acquire players from teams they had been at before than from unrelated teams, resulting in a total of 190 tie-hired-players. “We also found the negative performance effect is entirely driven by managers under team owners who do not have strong incentives to scrutinise their manager’s decisions,” said Dr Brandes. “These are owners who have brought in the manager, so will give them more leeway as firing them means they are admitting to a mistake. If the owner arrives after the manager, the manager is scrutinised more as he is easier to fire, because they are correcting somebody else’s hiring mistake, and not their own.” Information on manager turnover in the NBA supports the idea that new owners engage in stronger monitoring: within one year of an ownership change, 48 per cent of pre-existing managers are replaced. This would suggest under new ownership a manager would come under far more scrutiny. The findings suggest managers use their social network to reduce time and expense in looking for a business partner in the short-term and not to maximise performance in the long-term - which would be in the best interest of shareholders or owners. Dr Brandes added: “While the setting of this analysis is unusual, the results of our study have fairly broad implications. Several studies in the management and economics literature reveal that employees’ external social network influences their decision-making on behalf of the firm, for example, in connection with hiring, financing or investing. “The fact that these business ties persist beyond shared working experiences makes them potentially influential in decisions made on behalf of the company. Basketball provides a data-rich environment to explore what effect these ties outside the company have on performance and we find the negative effect of a manager’s business contacts is large. It is something managers and companies need to consider when making decisions in both hiring and in other transactions.” BFM

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Recession-proof rights Sports media rights have grown strongly in value almost everywhere in the world in the last five years, despite problems in the wider global economy. The TVSM Global Report 2015, a new publication from TV Sports Markets, illustrates and explains this growth story…

$36.8bn

The increase in value since 2010

The total, global value of sports media rights deals in 2014

34% BREAKING THAT DOWN A LITTLE, THE BIG MOVERS INCLUDE…

$2.9bn

Increase in value of media rights for football, the world’s most valuable sport, in 2010-14

$4.6bn

Percentage increase in value of the National Football League, the world’s most valuable sports property, in 2010-14

52%

Increase in value of sports media rights in the US, the world’s most valuable market, in 2010-14

WHAT IS BEHIND THE GROWTH? There are many reasons, and they vary from market to market, but among the biggest factors are: • Increasing penetration of pay-television. • Emergence of aggressive new players in rights markets, operating on global (e.g. Fox International Channels, Discovery Communications) and local (e.g. BT Sport) levels.

• Consolidation in the sports-rights agency industry, with a small number of wealthy companies paying strategic fees for rights.

• Sports organisations becoming smarter at exploiting their media rights.

• Fragmentation of television audiences, due to an increasing number of channels and online platforms, reducing the types of content which can regularly deliver large audiences.

• New, media-friendly competition formats, such as Twenty20 cricket.

• Economic growth in Asia, Latin America and Africa.

THE FUTURE Many of the reasons above will continue to apply in the next three years, so between 2014 and 2017 our expectations include:

21%

92%

29%

Increase in the value of the global sports media rights market

Increase in the value of basketball rights

Increase in the value of sports media rights in the Indian subcontinent

Get the full picture with the TVSM Global Report 2015. For more information, contact David Hunt, +44 (0) 207 954 3415, david.hunt@sportbusiness.com TV Sports Markets is the leading b2b news and information service for the global sports media rights industry

BUSINESSFIRST MAGAZINE

BFM | PROFILE

Waste management isn’t at the top of most people’s minds, but it is at the forefront of how society best functions. Business First speaks with Solar Bins Australia founder Leon Hayes about the importance of bins to social infrastructure and how waste management has moved into the 21st century.

t first glance, the vision Leon Hayes has for his company seems abstract. Solar Bins Australia wants to “change the status quo of waste management across Australia.” Most of us do not give much thought to our waste. We are happy to ask ourselves, is this recyclable or is it general waste? But beyond that, we do not think about what happens to our waste after we dispose of it. As long as our streets are free of stinking waste heaps, we are happy. However, emptying bins is costly. Each wheelie bin costs $2 to $4 to empty, including labour and transport costs. Moreover, some bins are empty while others are overflowing. In 2011, Leon Hayes started Solar Bins Australia. The bins he uses are high-tech Bigbelly solar bins from

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the US. Bigbelly has placed nearly 40,000 units into the marketplace. Hayes thought that an idea proven overseas would work here. He had taken that approach once before. It started in 2001 when he was living in the UK. Hayes worked for a telco and energy company, the largest of its kind in the UK. As Hayes gained experience, he realised he could return to Australia and do the same thing here. Working in the deregulated UK energy market prepared him when deregulation arrived in Australia. “So I came back to Australia and started Australia’s first energy comparison website for the energy market so that customers could go through a simple process and find the cheapest energy supplier online.” Switchselect.com was the first to offer that service in Australia.

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PROFILE| BFM

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BUSINESSFIRST MAGAZINE

BFM | PROFILE

Now, a dozen or so companies do the same thing. When Hayes exited Switchselect.com, he joined his father’s facilities management company. In it, he worked on business development, submitting tenders. “We covered multiple portfolios,” Hayes says. “Catering. Accommodation. Cleaning. Maintenance. Waste management. The whole gamut of anything you would have when you’ve got a mine site in the middle of nowhere.” To create winning tenders, Hayes sought out innovations the company could introduce. One multinational mining company he was preparing a tender for wanted a fresh approach to waste management. While looking for innovations in waste management, Hayes discovered Bigbelly. “I contacted Bigbelly and said to them, ‘Look, we really love this product, and I’d love to put it in a tender’.” Their company won the tender. When they installed the bins on site, they worked well, saving money and reducing the number of waste collections. From this early relationship with Bigbelly, Hayes started Solar Bins Australia in 2011. Their first customer was a council in Sydney. Then came Sydney theme park, Wet ‘n’ Wild. Hayes explains what he had to think about when getting started. It was “about understanding the Australian waste management landscape while also aiming toward changing the status quo... having a vision for waste management in Australia.” THE BENEFITS OF INNOVATION IN WASTE MANAGEMENT So what are solar bins? How do they work? Moreover, how do they benefit users? The solar bins use a smart, wireless system that helps customers save more than just money. The bins have a built-in compactor. The compactor goes to work as soon as the bins are full. This increases the capacity of the bins to five times above that of standard wheelie bins. The design of the bin deters pest access, such as rodents, possums, and birds. It prevents waste over-

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flow and windblown litter. By what amount does installing a solar bin reduce the number of collections? Solar Bins have a definitive answer to that question. From installations in remote rural and busy urban councils, they know the bins reduce collections an average of 86%. How? The bin sends an email and text when it is 85% full. Organisations that own the bins can also view them in real-time through a desktop and smartphone app. This means the bins only get emptied

when they are full, saving time, money, and human resources. HOW TO MAKE AN ABSTRACT VISION TANGIBLE The way Hayes has brought this technology to the market has been low-tech. “Our focus, just like we did within the energy market, was to be 100% customer focused.” After all, who does not have a complaint about their energy company? It is the same with waste management. “Within the waste man-

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PROFILE| BFM

Hayes. “Understand their pain points, their challenges, acceptances and desires.” Hayes sought to understand his customer’s pain points... their real wants, and desires... and what solutions would optimise their waste management structures. “We’ll take the Bigbelly out so those customers can touch it, they can feel it, they can interact with it.” This powerful way of building desire allows the customers to ask all the questions they have. Once, a council of a capital city brought two full 240-litre wheelie

time staff, and ten staff in total. Solar Bins outsources their logistics and warehousing. They have an inhouse design and marketing team, who work part-time as the work requires. Instead of selling the bins, Hayes prefers to give them away for free. Solar Bins earns its revenues from advertising. Each bin has four panels that are suitable for this purpose. For those customers who are unable to deploy advertising, Hayes offers a full service, all-inclusive hardware, software, warranty, cleaning and maintenance rental option.

“We’ll take the Bigbelly out so those customers can touch it, they can feel it, they can interact with it.”

agement industry, the majority of people have complaints about their waste management, but they’re stuck. They don’t have any other options.” Poor customer service gave Solar Bins Australia a way to enter the waste management industry. They stand out in it because of their sensible customer-centric approach. Hayes came from outside the waste management industry. Therefore, he could approach it in a fresh way. “We’d get in and understand those customers,” says

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bins to the demonstration. The night before, those bins had been in their central nightclubbing districts. Within 20 minutes of emptying the bins into Bigbelly, the council learned two things: 1) the bins worked; 2) the essence of what Solar Bins was trying to achieve. The success of Solar Bins shows that this approach works. “Be customer focused. Come up with unique ways of showing your customer the product. And then prove that the product actually works.” In 2011, their first year, they deployed ten units. The following year it was about 40 bins, and then the year after, 80. “It’s just been growing since then.” Currently, Solar Bins has about 350 bins placed around Australia. Moving forward, Hayes expects Solar Bins to continue to grow rapidly. The Brisbane-based company has just opened an office in Melbourne. In the first quarter of 2016, they plan to open an office in Sydney and Johannesburg, South Africa is scheduled for 2016 at the request of Bigbelly USA. Right now, they have six full-

With his all-inclusive option he even plants trees with Greenfleet for every Bigbelly deployed. 250 trees for each station deployed will be planted in sustainable forest across Australia. “We might not be able to take every rubbish truck off the road, yet, but we can make a powerful, positive impact on the environment with our Bigbelly’s reducing collection trips and Greenfleet planting trees on our behalf,” says Hayes. As he makes his vision a reality, other leaders can learn an important lesson. When you have an abstract vision, you need to make it concrete. Prove your product works in a tangible way so that people can experience the benefits they will receive. Few people want to accept a new way of looking at waste management. But as one of the most resource intensive industries on the planet, many people want to save time and money, and better manage their human resources. So far Hayes has proven their bins provide these benefits. More than anything else, his ability to continue doing this will ensure he enjoys ongoing success. BFM

BUSINESSFIRST MAGAZINE

BFM | FEATURE

Volkswagen’s problems start in the Boardroom There are many lessons to be learned about Board leadership writes Martin Martinez.

olkswagen is one of the world’s largest automakers. Its sales last-year was estimated at 202.5 billion euros. Based on its sales, it’s clear they kept up with their publicity, reputation and customers stayed loyal. The origins of Volkswagen started before World War II in inglorious circumstances. Today, it continues to maintain an unusual form of governance; a hybrid of family control, government ownership and labour influence. The information surrounding its history, culture and corporate structure left many to wonder why the recent emissions scandal wasn’t discovered sooner. Could this have been a problem directly related to the boardroom, or was it rooted more deeply in the company’s culture? According to Charles M. Elson, a professor of finance and director of the John L. Weinberg Centre for Corporate Governance at the University of Delaware, “The governance of Volkswagen was a breeding ground for scandal…it was an accident waiting to happen.”

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Markus Roth a professor at Phillipps-University Marburg and an expert in European corporate governance adds, “Volkswagen stands apart…it’s been a soap opera ever since it started.” Despite the knowledge Elson and Roth had with regards to German Standards and Volkswagen, there was no way to determine the exact details of the scandal that made headlines. This scandal occured due to a manoeuvre around the United States emission standards. Volkswagen executives and boardroom members approved the use of sophisticated software, despite the repercussions that it would have on the environment inside the United States. It is suspected that the intent of Volkswagen’s sales has something to do with their unwavering attitude about its software. The headlines in recent weeks have left Volkswagen customers and regulators in the dark. German reporters and newspapers examined the details of Volkswagen’s history a bit further. Reports abounded of a decades-long feud with the Porsche family. They came

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FEATURE| BFM to the conclusion that Volkswagen’s boardroom runs via an autocratic leadership — outdated and comparable to the governance of North Korea. THE LEADERS IN VOLKSWAGEN’S BOARDROOM Ferdinand Piëch, set the standard of the company to establish itself as a leader in the automotive industry in sales. Piëch succeeded to lead the automotive industry in 2014. However, his resignation was due to the reign of Volkswagen’s supervisory board, and attempt to direct a successful overrule of the luxury brand Audi before his governance at Volkswagen in 1993. Piëch’s forced resignation occurred in this past Spring, followed by Martin Winterkorn who voluntarily removed himself from the company’s chief executive position. As noted earlier, Volkswagen has always been unusually governed, and led by a hybrid family rule, government ownership and labour influence outdated to before WWII. In 2012, shareholders elected Piëch’s fourth wife, Ursula. Her qualifications showed no relevance to the position. However, the Porshe and Piëch family hold half of the voting shares and vote for family members as a bloc under the family agreement. The rest of the votes are held to labour representatives with only three to five seats on the executive committee, and the others left to board seats that are held by union officials and labour. Of the remainder of the seats, two are appointed by the government of Lower Saxony who own 20 per cent of the voting shares. Here’s the breakdown: 1) Qatar Holding: Two representatives of Qatar’s sovereign wealth fund, which owns 17 percent of Volkswagen’s voting shares 2) Piëch and Porshe family: Three seats 3) Management Representative: One seat “It’s an echo chamber,” says Professor Elson. THE DETAILS OF THE VOLKSWAGEN SCANDAL The scope of the Volkswagen scandal can be pinned on three major factors that led to an inevitable disaster. 1) Company isolation; 2) Clannish board members; 3) Deep-rooted hostility to environmental regulators. An opinion from an anonymous source spoke up on behalf of what he had witnessed. Wolfsburg, a city where Volkswagen is based in Lower Saxony is dense with the highest per capita income in Germany, an even more remote and isolated city comparable to Detroit’s heyday. The entire economy is automotive, and this instilled a mindset of irresponsibility to the impact of the environment. Additionally, the region depends on Volkswagen to make a living. “Volkswagen guarantees jobs for over half the supervisory Board,” the anonymous sourced said. “Its people depend on it to provide a return to their lifestyles, this is a mission that it has crafted to the German people—a national mission to provide employment. This evokes on the interpretation by Roth, ‘Volkswagen stands apart’.” THE LEADERSHIP OF THE VOLKSWAGEN SUPERVISORY BOARD MEMBERS Professor Elson shed light on that maximising employment shouldn’t be the number one goal to lead a company, instead it should be to monitor the health

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of the company and ensure its core responsibilities are justified to its company’s investors ensuring longterm health and overall profitability of the company. “Management’s goal is to keep their jobs, and the union’s is to save jobs and benefits and create more,” Professor Elson said. “That’s a fundamental conflict.” THE ISSUE IN THE BOARDROOM Volkswagen is not completely alone. There are other larger German companies that are equally divided between workers and its members elected by shareholders; due to a policy called co-determination, or Mitbestimmung. Although this has come under disapproval from members of the Eurozone and investors that invest in German companies, co-determination is not assumed to change in the near future. “The unions won’t give up co-determination without a fight…and the German public is use to it,” said Professor Roth. HYPOCRISY OF THE UNITED STATES POLITICIANS The notion that Volkswagen engineers oppose the decision made by the United States politicians was nothing but expected. Professor Roth said, “there’s an attitude of moral superiority there…the engineers think they know best.” Backlash from the Volkswagen engineers’ attempt to counter the emergence of electric cars in the United States are senseless as long as power plants are burning fossil fuels. “…Volkswagen is nonetheless obliged to obey applicable environmental laws…a notion likely to fall on deaf ears in Wolfsburg, especially compared to demands to be No. 1 in sales,” a German Volkswagen Executive engineer said. WHAT’S NEXT FOR VOLKSWAGEN? The insurmountable damage done by Volkswagen will be more than the $7.3 billion it has set aside for damages. The Environmental Protection Agency could fine Volkswagen up to $18 billion after its investigation ends, which doesn’t account for the other fees: lawsuits and investigation charges. After the Environmental Protection Agency announced its investigation, Volkswagen shares fell 30 per cent, and cleared $26 billion in shareholder value. UNRESOLVED PROBLEMS: 1) Recall of 11 million cars; 2) Remove software to meet emission standards without affecting automotive performance. FINAL NOTE Volkswagen has run a board without transparency. As Professor Elson said, “it doesn’t inspire confidence in the Board. The Board’s lack of communication with its investors has done more than lose investor confidence, it has deceived the public and incurred damages that could devastate the entire company. Meanwhile engineers and executives alike continue to refute their non-conforming outdated attitude. Today, Volkswagen’s tenuous position is due to boardroom coups, scandals, co-determination, and insular corporate structure. BFM

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BFM | FEATURE

Is IT empowering? Talent management came out almost the last priority for 2015/16, according to the IDC C-Suite Barometer 2015, and yet in the IT world there is a huge shortage of suitable candidates able and ready to run the new breed of systems that businesses demand writes Simon Piff, Associate Vice President, Enterprise Infrastructure, IDC Asia/Pacific.

usiness is all about taking calculated risks gambling, if you will, with the assets of the organisation to create an increase in overall wealth. Business risk, however, comes in many shapes and sizes, whilst IT risk manifests itself in many colours of the same risk â&#x20AC;&#x201C; information risk. The risk that the systems will be unavailable, that results in many disaster recovery offerings, is really about providing business with unobstructed access to the information they require, as and when they require it. IT security is that the information will either be stolen, lost, misplaced or otherwise inaccessible to the business. For the purposes of this article, I will ignore project risk, although this too can be partially addressed in a differing, innovative approach to overall IT risk avoidance. A new risk is entering the Asia markets that many are experiencing but few are knowledgeable in how to address. I am referring to resource risk: the inability to locate, hire and retain the right kinds of IT resources currently required in the markets. The three most highly publicised IT professions that are in shortage are enterprise architects, security professionals, and data scientists. Because of these supposedly varied issues of risk around the IT department, and due to the nature of the audits that legislation has imposed on a number of industries, the governance, risk and compliance part of the business frequently falls on the IT team. And yet the risky part of the business, the one that defines where the investments are being made across the organisation, are rarely involved or engaged in an IT risk conversation.

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Things must change, and the first place is to look within the organisation to see where the systems and processes are leveraging a 2nd Platform or older technology stack. These older systems are usually more difficult to maintain, to secure and to resource and, by definition are of higher risk of becoming a drain on the organisation. These older systems will be barriers to adoption of new, more competitive technologies and will become drains on the organisation very soon. Whilst it may not be possible to retire a system, it is certainly easier today to find ways to architect a more efficient business continuity and disaster recovery plan for these, and all systems. When it comes to leveraging the latest managed cloud services, such considerations should be a far simpler proposition than in the past as cloud technologies have significantly matured over the years, and by so doing frees up resources to focus on more rewarding areas. Once these first steps are taken and the fear of the unknown broached, the risks can then be far better understood and overshadow the current and mostly uneducated view. This will also help a transforming organisation make far better risk-based IT decisions on infrastructure architecture and placement. And not forgetting an increase in the ability to find the right levels of outsourced skills that will continue to be in shortage in the Asian markets for some time to come. Check out this IDC Infographic on walking the tightrope of business success. This lack of focus on talent, as indicated by the IDC C-Suite Barometer 2015, is something that has the potential to be overcome, if partnering with the right kind of service organisation is included in the IT strategy. BFM

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Improving orImproving simplifing simplifing ITor infrastructure IT infrastructure

An IDC infographic 1

Building Building better better management management tools tools

FEATURE| BFM

Risk Risk management management for for business business continuity continuity

Today’s cloud solutions factor in business continuity Today’s cloud solutions factor indisasters business continuity planning to mitigate planning to mitigate disasters

Walking the

INNOVATION and

risk

Tightrope

In this second installment of the IDC Infographic Series sponsored by CenturyLink, IDC highlights the importance of finding an equal balance of innovation and compliance to stay ahead of the fastchanging marketplace.

Governance and Regulations Governance and regulations limitations/restrictions among top Asia/Pacific IT Concerns Business success calls for embedding compliance into strategy, planning and managing costs

top 3 It Concerns of the Asia/Pacific C-Suite Lack of ICt budget for the business requirements Lack of understanding of new technologies Growing complexity in IT environment/varied user requirements

How to take risks out of business Risk Management Tops Asia/pacific ICt priorities

1 in 5 Asia/Pacific organizations say reviewing and developing a robust governance strategy and plan is a top priority

Building a more secure IT environment

Improving or simplifing IT infrastructure

Building better management tools

Risk management for business continuity

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Regulatory Regulatory and and compliance compliance readiness readiness

High High availability availability

Simplicity Simplicity

CapEx CapEx to opEx to opEx

FutureFutureproofed proofed infrastructure infrastructure

How ready are you How ready are you for a disaster? for a disaster?

% 22 22%

% 10 10%

surveyed say that more than surveyed sayITthat more than 50% of their functions/ 50% of their IT functions/ applications can be up and applications up and running fromcan the be disaster running disaster recoveryfrom site the in real time recovery site in real time

of Asia/Pacific of Asia/Pacific businesses businesses are not are not for a prepared prepared disaster for a disaster

Source: IDC Asia/Pacific C-Suite Barometer Survey Source: IDC Asia/Pacific C-Suite Barometer Survey

Essential Guidance Essential Guidance Four areas where a hybrid IT solutions partner can help Four areas where a hybrid IT solutions partner can help Outsourcing provides Outsourcing provides scale and access to scale and access to not resources and skills resources and skills not found in-house found in-house

Outsourcing can provide Outsourcing can provide sufficient levels of disaster sufficient levels disaster recovery and of fault recovery and fault tolerance tolerance

Selecting the right Selecting the right vendor that can vendor that can work through the IT work through the IT transformation maturity model transformation maturity model help mitigate any financial or help mitigate regulatory riskany financial or regulatory risk

An enterprise hybrid enterprise hybrid ITAn provider mitigates IT provider mitigates risks such as data risksand suchnetwork as datalatency, security security which areand partnetwork of their latency, core which areofferings part of their core business business offerings

To download the full IDC topline titled ‘Hybrid IT – Enabling Enterprise Agility’, click HERE To download the full IDC topline titled ‘Hybrid IT – Enabling Enterprise Agility’, click HERE Source: IDC Asia/Pacific C-Suite Barometer Survey This IDC Infographic was produced by IDC Go-to-Market Services. Any IDC information or reference Source: IDCisAsia/Pacific C-Suite Barometer to IDC that to be used in advertising, pressSurvey releases, or promotional materials requires prior written This IDC Infographic was produced by IDCvisit: Go-to-Market Services. IDCgmsap@idc.com information or reference approval from IDC. For more information, www.ap.idc.asia or Any email: to IDC that2015 is to be used in advertising, press releases, or promotional materials requires prior written Copyright approval from IDC. For more information, visit: www.ap.idc.asia or email: gmsap@idc.com Copyright 2015

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BFM | PROFILE

DEALING WITH THE

COMPLEXITIES OF LIVING Great salespeople believe in their product. Likewise, great CEOs need to have faith in their company writes Daniel G Taylor.

obby Lehane knows his company, CHU Underwriting Agencies, provides something that makes a difference. Appointed CEO in April 2015, Lehane is a good fit for the role. The opportunity excites him, he knows how insurance helps people. “I am relatively new to insurance. What I learned about it and saw firsthand when I was at my previous company Zurich is that insurance is both a necessary and a very good thing for society. “Insurers genuinely want to pay the claim. They believe that when you buy a policy the guarantee of that claim is what you are buying. I have seen people’s life’s severely impacted by catastrophic events and put back on track by receiving a claim’s payment. I value the industry and I don’t say that in any kind of a marketing way. Insurance has just resonated with me.” Fonnded in 1978, CHU’s mission was to meet the insurance needs of strata owners. For many people, the insurance industry can be a mysterious world. So let’s define two key terms when we’re talking about CHU.

“BPS has a valued and ongoing relationship with CHU as panel repairer. This partnership has allowed CHU to deliver widely acknowledged sector leading customer service using our direct claims response.” - Elaine Fin, General Manager, BPS

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Firstly, underwriting. Underwriting means taking on the financial risk in an insurance contract. Underwriters assess the risk, for example, burst pipes in an apartment building. The underwriters receive an insurance premium. In exchange, they agree to provide compensation should the pipes burst. Secondly, strata title. Strata title is an Australian contribution to property law that dates back to 1961. Property markets around the world have copied the concept. Strata title allows individual ownership of part of a property referred to as a lot. This type of ownership can be applied to many forms of building such as units, apartments, mixed use developments and community associations. The owners share ownership of the common areas. CHU created the first strata insurance policy in Australia. Their clients are the strata management industry and lot owners. CHU distributes its products in three ways. Firstly through their network of strata managers who act as authorised representatives of CHU, secondly through insurance brokers, and thirdly direct to Owners Corporations. Before he accepted the leadership of CHU, Lehane was Executive General Manager at Zurich Financial Services Australia. He headed up Zurich’s Small to Me-

dium Enterprise (SME) insurance segment and most recently he was responsible for their $1 billion Commercial Insurance segment. Switching from general insurance to strata insurance has not been a significant leap. “Strata insurance was part of my portfolio at Zurich. It’s a packaged insurance product as is most business insurance” One key difference is how CHU distributes its products. Zurich distributes its products exclusively through brokers. However, distribution through strata managers is “completely new to me”. Strata managers are responsible for meeting all the needs of sets of Strata properties and are paid a fee by the owners for this service. They range in size from large corporation’s handling thousands of properties, to small family run business managing 100 to 150 buildings. “Ultimately, the product is the same, but the way you would relate to a large corporation versus the way you would relate to an individual probably does by necessity differ. However, their businesses are both valuable to us. From a service perspective, it is very important that regardless of the distribution channel, the service we provide is excellent.” THE BENEFITS OF TECHNICAL AND LEADERSHIP SKILLS If you looked at where Bobby Lehane’s career began, you might

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PROFILE| BFM

not expect him to be CEO of an insurance company. In the early 1990s, he wrote trading software for Lehman Brothers in Tokyo. When he moved to London, he worked for them again. Over time, his career has moved from technical roles to project-oriented management positions. Lehane moved from London to Australia as a regional director for a technology-based startup. His next move was to Commonwealth Bank as head of their financial markets technology. “I did a lot of transformation through that period of time at Commonwealth Bank.”

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Keen to take on a chief information officer role, Lehane found one at the major developer Multiplex. At the time, they had just listed on the ASX. He stayed with them until they sold to Brookfield, the current owners. When Lehane left Multiplex, he joined Zurich as Chief Information Officer. He had many successes in the role, first in Australia. Later his victories extended to Asia Pacific and the Middle East. His accomplishments earned him a promotion to Chief Operating Officer. In this role, he gained a broader understanding of the busi-

CHU retains a dominant position in the market for good reason: it delivers more than just insurance. It recognises the complexity of strata and that when a party makes a claim they need help. McCulloch & Buggy has been working with CHU for over 15 years, upholding CHU’s philosophy to deliver that extra service while providing legal expertise. McCulloch & Buggy are specialists in strata matters from building issues to property disputes, understanding the group dynamics of managing shared property. Like CHU, McCulloch & Buggy works hard to stay abreast of the increasingly complex and legislated strata domain. At the heart of successful strata communities is ‘ease of living’ and we, together with our partner, believe in peace of mind for those whom we serve. - Duncan Stuart, McCulloch & Buggy Lawyers

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The Scotia Group has a wealth of knowledge and experience in the strata insurance industry. Highly skilled in all areas of 24/7 insurance restoration and repairs.

1300 SCOTIA scotia.com.au

PROFILE| BFM

CHU has a number of respected supporters including BPS Strata Maintenance, Scotia Property Maintenance, McCulloch and Buggy and Cunningham Lindsay who are integral to the successful operations of the company. Many of these partners have been heavily involved with CHU for 15 to 20 years and beyond and have been influential in CHU’s past, present and future. These partners are attracted to CHU’s integrity and vice versa and Lehane hopes that they remain with the company well into the future. In fact he has made it part of his mandate as the relatively new CEO to do this. It is just another way that CHU looks after all who are involved with the company – from customers to business partners.

ness. “I was reviewing businesses across eight or nine countries on a regular basis. I decided that I had some kind of aptitude for that, and then I went into running the SME business in Australia. “Over a period of time, I have made a number of other steps that have moved me from being a technologist into an insurance leader. Leadership isn’t necessarily about your technical skills as opposed to your other skills.” In July 2014, he left Zurich. “I wanted to spend some time at home. I’ve got two boys, who are nine and six, and a wife. We live on the Northern Beaches here in Sydney.” TURNING VISION INTO REALITY Lehane’s background has given him technical skills as well as leadership know-how. “I have, for a long time, rated my interpersonal skills higher than my technical skills. What the technical back-

ground gave me was a structure a discipline and an execution focus that probably, had I come from a different discipline, might not have been so developed. “Having that kind of execution focus, and then having good, strong interpersonal skills meant that I was able to articulate a vision, communicate that vision to people, and then bring them on the journey and actually deliver it. The secret to getting things done is actually doing them, as opposed to talking about doing them.” In his leadership role at CHU, he faces some new challenges. “The CHU team had been through a few pretty tough years before I arrived.” The factors that contributed to these “tough years” include uncertainty about the sale of CHU (from QBE to Steadfast) and the number of new competitors in the marketplace. “It is a strong, positive team. We have people who have been here

We have been working with CHU for nearly 20 years and their strength in the marketplace has enabled us to grow our business in the strata community. Our mutual clients, the strata companies, provide us with a constant stream of work due to the fact that we process the claim direct with CHU. Their ease of claims process and their stature within the strata community is an excellent selling point for us and our clients like to know that clients’ properties are being looked after when something unforeseen happens such as storm events, burst pipes or accidental building damage. - Billy McLaughlin, The Scotia Group

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I’ve had the pleasure of knowing and working with Bobby since his appointment as CEO of CHU and have observed first hand his positive influence over the business, employees and clients alike. Bobby inspires a striving for the extraordinary within each employee and he is a leader who will be a definitive player in the future innovation of strata insurance. We take great pride in supporting CHU to provide first class strata insurance services. - Christopher Frazer, Manager - Strata at insurance claims provider Cunningham Lindsey

for 30 years, and we have people that have just recently joined. There is a common sense of purpose. There is a very good energy within the business at this point.” Lehane defines that purpose as having two parts. Firstly, it is about recapturing and harnessing the essence of CHU from the past. Secondly, it is about making the company a force into the future. Part of his vision involves restoring the pride employees feel about working for CHU. “I want people to come to work, and want to come to work. To leave work feeling like they have achieved, and they have enjoyed. In an environment where you don’t meet your objectives, it becomes quite difficult to have that feeling.” Moreover, he needs to handle the major unexpected events. These include things like the New South Wales storms or the Queensland floods. It is at times like those that

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Strata insurance claims services across Australia If you are a Broker, Insurer or Strata Manager call 1800 783 243 for more information on how we can assist with your strata portfolio and building claims. cunninghamlindsey.com

Proud panel repairer of CHU specialising in prompt restoration of strata insurance claims in NSW and ACT www.bpsstrata.com.au | 1300 724 814 28 BUSINESSFIRST MAGAZINE

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PROFILE| BFM

“I think the expectation is that we continue to run the business successfully. That we grow the business and prepare to take full advantage of the growing strata landscape in Australia.” thousands of calls are placed, and customers need attention. To succeed with his vision, Lehane needs good relationships with key suppliers and partners. “Ultimately, when someone buys from CHU, they are trusting that we are going to deliver the service. Our key partners are on the front line delivering that service.” Bobby Lehane thinks the expectations Steadfast have of him are clear. “I think the expectation is that we continue to run the business successfully. That we grow the business and prepare to take full advantage of the growing strata landscape in Australia.” And what does that landscape look like? Research from Strata

Communities Australia estimates that 3.2 million people live in attached properties. These include flats and apartments. That number looks set to rise by 1M by 2025. Lehane concludes, “Strata and Strata Insurance is becoming more complex as more people move into this style of living, in addition there in an increasing complexity of schemes and that is the challenge and opportunity for us. We believe, that working with a specialist in this area is very important to securing the best cover.” Just as he has faith in what his company offers, Lehane is confident he can grow the business. With his track record of results, you can expect he will succeed. BFM

BFM | FEATURE

Leadership lessons from abroad Understanding future trends in industry and management are vital for ensuring a business remains well-run, competitive and productive. In todayâ&#x20AC;&#x2122;s global climate, this is truer for Australian companies than ever before â&#x20AC;&#x201C; particularly for those operating in once-vital manufacturing industries that are now largely in decline writes Hamish Hogben.

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FEATURE| BFM

ne rapidly declining industry is the automotive sector, which is expecting the exit of its three Original Equipment Manufacturers (OEMs) by 2017. To weather this storm, it has become more important for corporate leaders in this space to take heed of lessons and experiences from similar companies and executives in other mature markets, which can provide a leadership blueprint for how we approach these new challenges. The keys to helping challenged sectors continue making contributions to the national economy are effective leadership built around detailed understanding of important meta-drivers (both at home and abroad), proactive decision-making based on intricate knowledge of macroeconomic factors, encouraging growth in the people around you, and adapting as necessary to succeed. All of these are founded on local action being informed by global perspective. THE IMPORTANCE OF GLOBAL PERSPECTIVE I have worked in the automotive sector for 14 years, which includes seven years in the vibrant but difficult manufacturing environments of Shanghai and Bangkok (as well as six months of study in Beijing). It was there that I acquired the skills, insights, patience and vision necessary for leading an organisation through trying circumstances, learning and developing a broader, more global perspective after exposure to culturally-unique management styles and working elements. One of the most important lessons I learnt is that an understanding of cultural nuances and beliefs is critical. As the business world becomes more transparent and interconnected, these skills serve as the foundation of leadership regardless of country. Companies can no longer afford to think they function within a vacuum – global and regional trends impact everyone, particularly in a modern Australia that increasingly relies on international markets to drive growth in industries locally. Working in these diverse environments also confirmed my own strong belief in the value of a hands-on approach, which fosters deep understanding of and pride for both your organisation’s final product and its core competencies. I take every opportunity to become actively involved on the factory floor, interacting with the manufacturing process to drive increased communication with colleagues at all levels. THE VALUE OF INTERNATIONAL EXPERIENCE AT HOME Upon returning to Australia, I find myself constantly referring back to and using the skills and knowledge I acquired while working overseas. The automotive industry in Australia is now experiencing an unchartered period of decline and manufacturing of this nature will one day cease to exist here, presenting unseen challenges for companies to navigate. While this is a difficult time, we must also realise that the experience and growth gained can be used to build for the future. Although car making has a limited future in South Australia, strong and innovative leaders with understanding of the global environment and the intricate manufacturing capabilities of their

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organisations can help manufacturers diversify into other niche market areas – again, illustrating how international exposure adds value. For example, the automotive industry brings lean processes and technology that can in fact be transferred to other industries. This in turn will allow best practices and key learnings from automotive to improve and develop other sectors, making them more competitive in the global market and helping to keep more manufacturing in Australia. SELF-IMPROVEMENT REMAINS VITAL It is clear that living and working abroad for a period of time adds a wealth of knowledge. Bearing in mind, however, that moving overseas is not always an option, there are other ways of developing new skills and the necessary cultural understanding for managing in difficult contexts. Key among these tools is executive education. In light of the challenges that come with the downturn in the Australian automotive industry, I recently completed the three-week Management Acceleration Programme at INSEAD’s Fontainebleau campus, after receiving a study grant from the Industry Leaders Fund.

“It is clear that living and working abroad for a period of time adds a wealth of knowledge.” Immersing myself in the school’s multicultural learning environment, the intensive programme covered vital areas like leadership foundations and skills, strategic insight and supply chain management, while delivering insights and highlighting areas for personal improvement that otherwise would not have surfaced. Knowing where your weaknesses lie at an early stage helps to reflect and plan for future tasks. In addition to this, the programme also offered the opportunity to work and interact with fellow managers from 16 different nationalities, all bringing dynamic and interesting experiences, backgrounds and skills for our learning group to share in. Having had the opportunity to work in Australia and Asia and with further executive education experience in Europe, I now realise that the key for personal and cultural development – especially for managing in declining industries – is self reflection both as an individual and as an organisation. This highlights weaknesses and areas for improvement and, importantly, keeps managers focused on goals. Only by remaining optimistic through challenges will we deliver positive outcomes for our colleagues and our industry. BFM Hamish Hogben is the Operations Manager, South Australia, for TI Automotive Australia. He completed INSEAD Executive Education’s Management Acceleration Programme in 2014.

BUSINESSFIRST MAGAZINE

BFM | QUALITIES

5 Qualities of Great Entrepreneurs Jack Delosa asks the age-old question: what are the winning qualities of an entrepreneur?

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QUALITIES| BFM

Jack Delosa

Gen Y Entrepreneur & Investor

ichael Dell was nineteen years old when he borrowed $1000 from his parents and started actualising his vision around how computers should be designed, manufactured and sold. For Dell, now the owner and CEO of one of the world’s largest technology companies, there is one question he avoids answering more than any other. “How can I become a successful entrepreneur?” According to Dell, this is his least favourite question because, in his own words, “If you’re waiting for someone else’s advice to become an entrepreneur, chances are you’re not one.” I completely agree. There may be thousands of people who have the energy to become an entrepreneur; there may be millions who have the vision. But in my mind, there are very few – perhaps as little as 1% of the population – who have what it really, truly takes to thrive in the world of business and become successful entrepreneurs. I believe there are five qualities that determine the potential of a great entrepreneur: REBELLIOUS AND DISRUPTIVE Take a look around you. The greatest entrepreneurs of our time, including the aforementioned Michael Dell, started their enterprises in bold defiance of the status quo. These days, great entrepreneurs are not conventional, nor conservative. They are not people-pleasers, nor conformists. Instead, great entrepreneurs are rebellious by nature; creative, innovative and daring. I have often foretold that the biggest threat to Google is not some lumbering corporate; it is a couple of guys with a vision, sitting in a garage somewhere. Even if we look at the greats: Steve Jobs or Richard Branson, the next wave of great entrepreneurs will not be copying these guys. To copy the greats is to not learn from them. The next wave will be uniquely themselves, just as Jobs and Branson were.

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HIGH TOLERANCE TO RISK US President, Teddy Roosevelt once said “Far better is it to dare mighty things, to win glorious triumphs, even though chequered by failure ... than to rank with those poor spirits who neither enjoy nor suffer much, because they live in a grey twilight that knows not victory nor defeat.” Great entrepreneurs do not only understand this concept, they are unable to consider living any other way. ABILITY TO COPE WITH STRESS Stress is inevitable in the world of business and there are two ways to deal with the pressure: you can feel it, or you can apply it. In my view, the greatest entrepreneurs are those who master stress. Accept it. Welcome it. This is because they have an innate ability to transform pressure into creative energy or positive action and use it as fuel to propel them forward. ABILITY TO ACTUALISE A VISION AND PURPOSE One of the most vital qualities of a great entrepreneur is the ability to take a vision and put

it into real, sustained action. For some this means an ability to build a meticulous plan and follow it; for others this manifests as the courage to put one foot in front of the other and navigate opportunities as they appear. The important thing is that great entrepreneurs do not procrastinate, they do not surrender and they do not allow the voice of doubt, fear or failure to become louder than their own, determined “I will!” WILLINGNESS TO GROW AS A PERSON To start a business successfully, you must be a chameleon; you must learn how to recognise and draw upon facets of yourself that you have never exercised before. To be a great leader, you must be honest about your limitations, your needs and your abilities. Therefore, in my view, to be a great entrepreneur it is imperative that you are willing to explore the depths of your own personality; to practice self-awareness, humility and strive every day to be the greater version of yourself. BFM

“If you’re waiting for someone else’s advice to become an entrepreneur, chances are you’re not one.” - Michael Dell

BUSINESSFIRST MAGAZINE

BFM | PROFILE

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PROFILE| BFM

Connecting top fresh director talent with board opportunities There is a fresh, dynamic talent pool of quality directors available with phenomenal skills and capabilities that can make a real contribution at board level. Business First speaks with Kylie Hammond of the Director Institute about what it takes to thrive in a board role. Kylie – what led you to found the Director Institute? I have been involved in senior level recruitment, executive coaching and mentoring for twenty years, and recognised that there was a real gap around connecting fresh director talent with board opportunities. The board search market in Australia is extremely limited. It’s very tired. It’s the same people doing the same searches and they’re tapping into only a fraction of the true board director talent pool that is available in this country. So I wanted to provide up and coming, emerging director talent with a genuine opportunity to get their first, second or third board position. My aim is to refresh boards in Australia so that they are constituted by more than the same group of directors that are often driven by the old school business network. A good board director might have quite a different profile to many of those highly regarded amongst the current crop of board directors. While accountants, lawyers, ex-professionals and service firm executives have traditionally found their way onto boards, Director Institute looks for people with a broad set of relevant skills that will help the company on its journey. Typically we try and look for people who have experience in strategy. The board is there fundamentally to oversee the strategy of the organisation, so people who’ve had exposure in forming strategy and executing strategy are highly sought after. We also look for people who really understand risk management. The board’s main task is to oversee all areas of risk – financial, human capital, resources and repu-

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tational risk of the organisation. Strategy and risk are the really hot skill sets, however a diverse range of skills, experience and perspectives around the boardroom table is also important. How can a Board Director have a positive impact on the board? The role of a good Board Director involves a lot of hard work. The days of just swanning into a board meeting and not being prepared, or treating it like it’s a casual arrangement are well and truly over. You really need to be organised and thoroughly prepared for your board meetings and you need to be an active contributor. It’s vital that you have read all of your pre-meeting materials, and that you are prepared to debate and challenge the business strategy to ensure that it is right for the business. However, there is more to providing input as a board member than hotly debating every issue. Knowing when to speak up and when to listen in the boardroom is important because those personal dynamics - those relationships, are very important to the way in which decisions are made. Every board member has been chosen for a reason, so enabling every voice to be heard is a crucial part of ensuring that the best decisions are made. How involved in the business should board directors be? People who take a professional approach to a board appointment and have a strong work ethic do well. But it’s the director that goes the extra step to fully understand both the governance and operational issues of an organisation that perform the best. Obviously there’s a necessary

demarcation between the roles of a board member and management – and certainly board members aren’t expected or encouraged to become meddlers in the business, but they do have a legal and fiduciary responsibility to be across what’s really going on in the business and, at times will need to make their own independent inquiries. What does it take to get onto a board? There are a variety of things that people need to consider if they’re thinking of developing a board career or looking to expand their board directorships. The first thing is to really understand your personal value proposition - or in other words, understand where you’re going to add the most value to the board, and importantly be able to clearly articulate that to prospective board employers. Then, you need to make connections with the available opportunities in the market. Many board roles are not advertised; so networking with other chairs, or directors is vital if you want to find out when new opportunities become available. Organisations like Director Institute are helpful in this respect as they focus on connecting directors with tangible, often exclusively available board opportunities, and with other directors. CEO interaction with Boards – how much is too much? Many CEOs rely on a really good chair for mentoring and advice and as a sounding board for key business decisions. Very rarely would you see a situation where contact with the board is limited strictly to monthly board meetings. You would expect the chair and the

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BFM | PROFILE board of directors to have a healthy dialogue with the chief executive on a regular basis. The CEO should also feel that they can reach out to board members or the chair, as and when he or she requires. What actions should people wanting to have a board career take? Understanding how the market works and how others have secured their first board position is really valuable. Investing the time and energy getting appropriate qualifications and education is also crucial. The people who are serious about this really do take that time to clearly articulate where they’re going to be able to make that contribution and in due course market themselves appropriately. These days you need to market yourself like any product or service. You need to ensure that your brand is clear across all your collateral including online profiles such as LinkedIn, your Executive Resume and Board Resume. Most recruiters, other board directors, or even colleagues who are meeting you for the first time will look you up online first, so make sure that you spend the time to position yourself correctly – and professionally! What’s the right amount of time to spend on a board? Typically board positions are appointments for a period of time and it will often be one to three year terms. Boards need to renew because the requirements of a company or an organisation change over three to five-year periods, and fresh perspectives, and insights are key to good governance. I believe that the performance of directors needs to be reviewed, along with the skills and composition of the board, to ensure that the right people are around the table for the company at the right time. While renewal is important, these roles shouldn’t be seen as short-term appointments. It’s really important that there is stability for given periods in the boardroom. There are obviously risks associated with becoming a board director. How can you mitigate that risk? Director insurance has become a more essential service in an era in which, far more than in the past, courts are prone to find that the

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buck actually does stop at the top. Understanding the risks associated with building a board career is critical, and part of any director’s professional risk management strategy should include adequate D&O insurance cover. The Director Institute has partnered with Insurance House to develop an exclusive personal director and officer’s insurance policy. Companies will typically insure their board of directors, but there are limitations on that insurance and there are many instances where a board director would not be insured. Effectively ‘Director Guard’ is a gap policy that addresses some of the gaps that occur in the bigger, overarching director and officer’s insurance policies. Board recruitment –what is the state of the market? There are literally thousands upon thousands of companies; small to medium enterprises right through to quite substantial private and publicly listed companies that all seek board directors or advisory board members every year. In addition to that you have a very significant not-for-profit, sports, arts, community based sector that also seek board directors. Each of these organisations will be looking for particular skills, expertise and knowledge to add to their board, so there is no one ‘type’ of person that they’re looking for. The real challenge for board directors is getting connected to the opportunities at the time when they’re available. It’s not as transparent a process as people might think,

and certainly you need to be well networked to find out about the opportunities as they arise. For you personally, what are the pros and cons of running your own business? I regard setting up my own business as one of my most significant achievements to date. It takes a lot of courage to move from being an employee to launching and starting your first business. You really need to take a leap of faith because you’re no longer going to be able to rely on that regular pay cheque. It’s important to remember though that things won’t always go smoothly. Actually some of my failures have resulted in some of my best achievements, in that I learned from all the mistakes I’ve made along the way. I’m a very resilient person and when things have not gone so well I’ve been able to pick myself back up and get going again.

Ita Buttrose AO OBE - Chair of Director Institute Advisory Board and Kylie Hammond of the Director Institute are advising potential board members about how to seek board positions.

What is your secret to success? I always surround myself with people who are smarter, wiser, and more experienced than myself and I think that has probably been the key to my success. What are your plans for the future? Continuing to build and grow Director Institute is my priority. This is a real passion of mine - to really improve the quality of directors that are in the boardroom and I want to really open up that talent pool. That is my focus and where my passion lies and we’re having a lot of fun doing it. BFM

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PROPERTY| BFM

Beware when investing in off the plan property Buying off the plan is becoming an increasingly popular way to buy property, however real estate expert and author Patrick Bright warns investors to take a step back and fully understand the risks before signing on the dotted line.

B Patrick Bright is the Director of EPS Property Search

uying any property comes with risk. Each type and the location of any particular property has its unique pros and cons and a different level of risk and potential rewards. Once you have determined how much money you have to invest then it’s time to decide what type of property you’ll buy. Should you buy an apartment? Or a terrace, semi or townhouse? Or a freestanding house? What about a whole block of apartments? Should you buy an established property or one off the plan? With an influx of apartment and housing developments across Australia it’s no wonder that more and more buyers are being lured into purchasing off the plan property. So what are the risks associated with buying off the plan and how can buyers ensure they make a wise purchase? NEW VERSUS OLD I have helped a few clients to purchase off the plan property and I have personally bought through this method of sale as well many years ago. However, generally speaking, I don’t recommend investors buy off the plan property in the current market as I believe that established real estate provides a more secure investment opportunity. Often off the plan properties, especially those built over the last decade, have been designed as more investment products for developers who want to sell quickly with a high margin rather than a quality product built to a high standard. In comparison, I find apartments that were built in the 1960s to 1990s are generally in better locations and have more focus on space and outlook. Established blocks also tend to have higher ceilings, fewer common walls and better

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floor plans while more recent developments seem to be more focused on cramming in the maximum number of units at the expense of living space. Unless you’re skilled at reading a floor plan, you’re not going to know just how important an extra metre of floor space in a particular room such as the lounge room will be in terms of both functionality and value. This is something you’re going to need to know if you are evaluating a floor plan when considering an off the plan purchase. UNDERSTAND THAT YOU’RE MAKING A SPECULATIVE INVESTMENT Anything that you buy with a delayed settlement is a risk and the longer the settlement the greater that risk becomes. You’re punting on the fact that the market will go up. If it goes down and it’s worth less at completion than what you paid at the planning stage then when you go to finance that property at settlement you’re in negative equity. If you end up in this situation it’s much harder to get the finance and if you can’t secure it then you will lose your 10% deposit. Be aware that if the developer then on-sells the property for less they could also sue you for the difference for nonperformance. Investors can also have tens’ of thousands of dollars wiped off the value of their property come settlement through the shrinkage clause in off the plan property contracts. This clause generally allows a 3% to 5% shrinkage on the floor plan of the property which is up to the developer’s discretion. If it’s a 100sqm two bedroom apartment and the developer decides when they’re

building it that they’re going to cut a metre off the balcony or a metre off a bedroom or a lounge room, there’s nothing you can do about it and modifications like these will have a serious impact on the end value. Another standard clause in an off the plan contract is called a sunset clause. Here developers can deliberately delay the development’s completion past a certain date, enforce the clause and refund your deposit. This strategy allows the developer to then sell the property again once completed and is highly attractive to developers in a rising market. Other major risks that should be considered include; if the developer goes bankrupt, delays in construction and dissatisfaction with fixtures and fittings. DON’T BE SWAYED BY CLEVER MARKETING Don’t be fooled by glitzy brochures. Are you paying today’s price? The best way to ascertain market value is to get an independent valuation or call in a buyer’s agent for advice. Don’t rely on the marketing company, developer or a selling agent. Make sure you also hire your own lawyer who is familiar with off the plan property contracts to review the contract. You don’t want any nasty surprises. Whilst making a good investment with off the plan property can be hard to achieve, if you’re buying a home to live in and you want to pick the finishings and you’re confident to take the risk then buying off the plan might be for you. Just make sure you check the quality of the fixtures and fittings as agreed in the contract of sale, do your due diligence and hire experts to guide you through the process. BFM

BUSINESSFIRST MAGAZINE

BFM | TAX

Look out…

the taxman cometh! Many businesses – and not just the ones with something to hide – live in fear of an unwelcome visit from the ATO. The tax administrator’s fearsome reputation precedes it, bolstered by the occasional media story of a business somewhere, raided at dawn, computers taken away, files removed…. The reality, however, is usually somewhat more benign writes Mark Chapman.

T Mark Chapman director of Tax Communication H&R Block.

he ATO reviews and audits the tax affairs of businesses all the time but in practice, the ATO generally operates on the basis of voluntary cooperation with taxpayers. If the ATO has reason to believe there is something remiss with your taxes, they’ll generally write you a nice letter asking for additional information about the issues that puzzle them. Provided you respond by giving them what they want, in a timeframe that’s mutually agreeable to both parties, the chances are the process of being audited, whilst certainly not a walk in the park, will at least maintain a degree of business-like civility. It’s important to be aware though that behind the velvet glove that the ATO generally applies when it deals with taxpayers, there’s a fist made of the toughest iron. In short, the ATO can afford to be nice to you because if you don’t cooperate, the ATO has an arsenal of powerful weapons which it can, and will, apply to force uncooperative taxpayers to comply. So, if you get a letter from the ATO requesting information and choose to ignore it, or procrastinate, or refuse to provide the information they are looking for, the chances are that the ATO will turn to its formal powers. In addition, if the Tax Office believes you are mixed up in fraud or tax evasion, they will often use their

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formal powers as a first resort rather than a last resort. And that is where things can turn unpleasant very quickly. WHAT ARE THE ATO’S FORMAL POWERS? Having noted that the ATO only rarely uses its formal information gathering and access powers, it’s worth observing that the ATO used those powers to gather information from taxpayers more than 6000 times in 2012-13, the latest year for which figures are available. That sounds like a lot, though in reality it’s a tiny fraction of the total number of interactions the ATO had with taxpayers in that year. They also demanded that taxpayers attend for interview 200 times, sought access to taxpayers’ premises with notice 19 times and sought access without notice twice. So, if the cooperative approach hasn’t worked, what is the extent of the ATO’s formal powers? First of all, the ATO and any of its authorised officers has the right to full and free access to all buildings, books, documents and other papers to enable the ATO to carry out its tax administration functions. This applies for income tax, GST, Fringe Benefits Tax and all other taxes administered by the ATO. Access extends to electronically stored records and the ATO expects that encryption keys, passwords, login codes, manuals for hardware and

software will all be made available if required. The ATO also has the power to compel a person to attend an interview with tax officers and to provide information and evidence. As well as obtaining evidence from you – the taxpayer – about your tax affairs, the ATO can also use its powers to force a third party to provide information about your tax affairs. That could be your bank, your employer, customers or suppliers. The ATO even uses its powers to obtain information from overseas, including from foreign banks. Note that the ‘full and free’ access permitted does not require the Commissioner to give advance notice to the entity being visited, only that the tax officers undertaking the visit have written authorisation from the Commissioner. If the ATO does

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TAX| BFM

means providing reasonable office space, light and power, photocopying and telephone access, etc. That also means that the taxpayer might have to give details of where specific records are kept, or access computer information for the ATO. Subject to any right of legal professional privilege, it is an offence to hinder or obstruct a tax officer exercising his/her right of access. In the event that there is any physical obstruction, tax officers have the right to take “all reasonable steps” to remove that obstruction. These formal powers are subject to remarkably few explicit qualifications. In effect, the ATO has the power to retrieve information about any taxpayer from any person or entity through a variety of means.

turn up unannounced, the taxpayer is entitled to temporarily delay any search of their premises while the taxpayer seeks legal advice on either the right of access itself or whether any records or documents are subject to legal professional privilege (see below). If the search is temporarily delayed, the tax officers undertaking the visit will seek to ensure that no documents or records are tampered with during the delay. TIPS: • It is an offence to refuse or fail to comply with the ATO’s formal information gathering powers • A tax officer is not entitled to remain on the premises without written authorisation signed by the Commissioner or his delegate (usually another senior tax officer). The ATO’s powers of access apply regardless of whether the

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records and documents sought are held personally, at your business premises or at the offices of your accountant or solicitor. In some cases, solicitors can refuse to hand over material which is subject to legal professional privilege (which applies to protect certain communications between a legal adviser and client where the documents relate to legal advice given or received or are expected to be used in litigation). In some circumstances, accountants can also take advantage of a similar concession. Subject to a warrant allowing confiscation or the taxpayer granting permission, the ATO is not empowered to confiscate any original records but does have the power to take copies and extracts. The taxpayer must provide tax officers with all reasonable facilities and assistance. That

WHAT ARE YOUR RIGHTS? The first thing to note is that if the ATO is looking to use its formal powers against you or your business, you shouldn’t look to deal with it yourself. You will need professional advice, possibly from an accountant or lawyer and most likely, both. It is in your interests to have your adviser present in any interaction with the ATO to help you answer questions accurately. You can also look to rely on the provisions of the Taxpayers Charter (available on the ATO website), which identifies your rights and entitlements in all your dealings with the Tax Office. Although the ATO is bound to abide by this Charter, there are very few channels of legal redress where they do not abide by it, which is a constant source of irritation to many taxpayers and their representatives, particularly those who believe they have been treated poorly by the ATO. To conclude, the chances are that you and your business will never have to deal with the ATO in full battle mode. That’s just as well because doing so can be a stressful and costly exercise. You do however need to be aware of the circumstances where the ATO’s formal powers might be used. Avoid those circumstances, and all should be well! BFM

BUSINESSFIRST MAGAZINE

BFM | PROFILE

Symmetry in motion After 10 years of being a shareholder in another recruitment agency, Craig Anderson decided to start his own business â&#x20AC;&#x201C; Symmetry HR. He speaks with Business First about the changing nature of the industry and what HR means to people.

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PROFILE| BFM

ymmetry Human Resources commenced operations in February 2010 although Craig Anderson has been in recruitment since 1994, a time when its importance was no less than it is today, but the way in which clients are matched with candidates was dramatically different. Craig has seen many changes in the industry, however the continued development of technology has impacted on process and service delivery. “The advent of technology has made a huge change to the industry,” Craig says. “When I first started in the industry, everything was paper based so all candidate applications and client data was kept on cards. Clearly that was a long time ago and today the industry is supported by a large array of software suppliers and is far more streamlined.” “The effect of this has been to change the way recruitment takes place. Today, online job boards are a critical tool in sourcing candidates however there has been a move towards capturing talent via social media applications. The percentage of candidates being secured via these applications is increasing as a percentage of our total candidate pool.” Along with technological changes in the recruitment industry there has been a significant continued drive around the management of employees, particularly risk management. “Statutory requirements have been around for a long time, but the application of them has tightened. So, your requirements as a business to comply with work cover legislation and the like, is governed more closely. Furthermore there is greater awareness of industrial relations amongst all people and a move to a more litigious society; as a result the need to have carefully documented policies, that you use as a management tool, has been another development” Craig says. In fact there is greater transparency around the entire industry, including around employer/employee expectations.

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In this day and age every party knows what the other wants. That’s why cultural fit has become more important than almost anything else. Craig, and by extension, Symmetry HR believes culture is now driving the HR industry. “I do consider there is now a far greater emphasis on recruiting according to cultural fit as opposed to skills alignment. Obviously, skills alignment is still critical, but organisations seem to be looking for a cultural fit with a candidate. Clients want to know if a candidate will “fit in” with their team and help them grow their business. Where job applicants’ skills and qualifications are similar, clients immediately look to cultural fit and

temporary staff placements. Symmetry HR supplies temporary staff and staff for permanent vacancies. Craig has built a process that ensures that the company meets with all of its clients face to face, to ensure they have a detailed understanding of the vacant position. “Our client site visits are critical to establishing our understanding of the cultural fit of potential candidates. In addition, whilst on site, we are also establishing the skills requirements and attitudinal expectations of our client as it relates to job candidates. These three recruitment criteria: culture, attitude and skills are assessed by our program called CAS.” Craig says.

“We have clients with national requirements, our edge is that we supply a corporate service but we have not lost sight of the importance of a personal, professional and friendly service as opposed to a more rigid, corporate experience.” candidate attitude.” So when there is a culture clash between an employer and employee, how should this be dealt with? Craig says it has a lot to do with communication. “Just being transparent with communication and making sure that people understand what’s transpired and what the consequences of the situation are is crucial. The company and its people need to be working cohesively. If you have an employee working in another direction, getting them realigned with the company’s goals and culture is critical.” It is clear the HR is not just the placement of individuals within organisations. There is a whole lot of work that goes on behind the scenes to ensure the relationships remain strong and cohesive. For Symmetry HR that can be a little trickier especially with

Symmetry HR is playing amongst some multi-national giants, but Craig says this is an advantage as the company can bring to the table some solutions that are not necessarily as rigid as you might get with a multi-national provider. That leverage is part of the reason he started the business, which came about after the demerger from another agency. “Ultimately the aim of the business has been to produce the best service we can. And he practices what he preaches. While he places the best candidates into jobs that suit, he takes the same approach to hiring his own staff and says HR is really a team effort. “Business success is linked to the performance of your team. We’re a personal performance industry, and aim to ensure that when people leave Symmetry and look back at their time with the

BUSINESSFIRST MAGAZINE

BFM | PROFILE

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PROFILE| BFM

business, whether that be three years, five years, ten years or whatever, they say, ‘That was a time where I really developed as a person and as an employee, and I wouldn’t be where I am today without the experiences of working with Symmetry Human Resources’. “If we can provide that platform, then the company will continue to grow because that person is growing within the role, bringing their expertise and their passion and enthusiasm for the role and that gets results for us. Hopefully,

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we will have been able to provide an experience where staff, in the future, can look at our business and say, ‘It contributed to my business, my growth and success in my career’.” It seems that philosophy has held firm. After the demerger, Symmetry HR had two offices and six staff. Today, they are closing in on 40 staff with offices in Melbourne, Sydney, Brisbane, and Adelaide and 150 clients they invoice per week. However Craig says the company is still small enough to continue to offer a very personal service. “We have clients with national requirements, our edge is that we supply a corporate service but we have not lost sight of the importance of a personal, professional and friendly service as opposed to a more rigid, corporate experience.” That’s key to Symmetry HR’s success. In the big bad world of corporate HR, they are still delivering a flexible and personable service. And this approach has allowed Craig to continue to grow the business through internal programs. One program is called WOW. WOW is in essence a customer

service program designed to wow clients, suppliers, and candidates. And other growth strategies include acquisitions. The most recent being Staff Express in Queensland. “We have a strategy of organic growth, but also growth through acquisition. We have acquired businesses along the way and they have, for the most part, been integrated into the business and now operate as Symmetry Human Resources. “We will continue on the acquisition path as well, although at the present moment we’re consolidating our position and concentrating more on organic growth. But, we expect that sometime in the next 12 to 18 months, we will probably reload and go for another one”. Now the vision is to continue the development of Symmetry HR. “We’d like to be truly a national business. We’re going to have an office in Western Australia. We would like to expand internationally as well, possibly move into Asia,” Craig says. So obviously there are big plans afoot, but Craig has positioned the company to tackle them with gusto. BFM

BUSINESSFIRST MAGAZINE

BFM | BUSINESS

Prepare for the post-Christmas graveyard period Post-Christmas is the most common time for business insolvency. While it may not exactly be in the Christmas spirit, December is the time to focus on your debt or risk being a casualty in the New Year writes Roger Mendeslon.

he Christmas period is a testing time for small businesses, particularly business-to-business operators. Most of your clients will typically start to wind down in late December and won’t fire up again until mid-January, so if you rely on them for cash flow and aren’t adequately prepared, you

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will more than likely suffer a cash crunch. B2B sales characteristically decline over this period and, when combined with an increased holiday bill, including Christmas leave loading, it makes for a stressful silly season. However most businesses won’t feel the full force of this until after

Christmas. February and March are what I call ‘Graveyard Month’ for SMEs because this is when debts catch up with them. Realistically you should have started making preparations in early November, however if you haven’t started yet, don’t stress. There are still steps you can take now to protect your business.

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BUSINESS| BFM

purchase, try to negotiate a deal that incorporates deferred payment terms. For example, if you are placing a sizeable order, negotiate a term for payment to be made in 60 days. This will give you time to recover before making any expenses. Better yet, if you can defer the order altogether, do so. It is best to leave any new orders until January when the financial pressure will be reduced and you will be in a better position to negotiate a deal.

1. Make a plan It sounds simple but planning ahead is the most important thing you can do. You need to know your cash projections and have a clear view of where your money will be spent. Spend time carefully planning your staff rosters for the slowdown and seriously consider closing for additional days if your operating costs are likely to exceed revenue for those days. 2. Focus on pre-Christmas wins Focus on jobs that can be completed throughout the remainder of December. Big jobs that will carry over into the New Year regardless of what you do, aren’t worth pursuing and will draw resources from more pressing issues. Invoice whatever you can before Christmas to give yourself a cash buffer to carry you over into the New Year when you can tackle the bigger issues. You want to get as many accounts at least partly paid off before the break. As an added incentive, offer discounts to clients who make their payments before

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3. Chase overdue accounts The most effective way to have your overdue accounts paid is to get on the phone to overdue clients and ensure they pay before they shut down for the year. You would be surprised how often simply picking up the phone can result in your overdue account being paid off almost immediately. It’s also a good time to review your outstanding debtors ledger. Refer any accounts that are older than 60 days and those where you are unable to get at least a significant part-payment to a debt collection agency. It is better to do this in December, particularly for B2C debts, as many will have received their holiday pay so will be in a better position to pay.

5. Talk to your creditors If your cash projections look bleak, you need to speak with your lender right now. Don’t wait until you are really under pressure come the New Year. They will provide you with an understanding of their requirements and help you plan accordingly. They will be more flexible if you let them know early and are seen to be proactive as opposed to leaving it until you are really in trouble with your hat in your hands. You also need to review your existing creditors to whom you owe payment, as well as your anticipated future creditors for December and January and, if it looks like you will need to extend payment terms, alert them early. Again, the earlier you let them know, the more understanding they are likely to be. Talk to them about a deferred payment plan. December tends to be a party month so don’t put your head in the sand and hope everything will be ok. You’ll leave yourself with much more than a Boxing Day hangover. All it takes is one creditor who you are unable to pay in full to lodge a credit default against your name or worse, sue you, for circumstances to quickly get out of hand and put you in a serious crisis. BFM

4. Put off purchases I suggest you avoid making any larger purchase orders before the end of year. If you have to make a

Roger Mendelson is CEO of Prushka Fast Debt Recovery and principal of Mendelsons National Debt Collection Lawyers.

Christmas. It’s an easy way to bring cash in quickly and avoid the hassle of chasing payments in the New Year. And of course, this is in the Christmas spirit.

BUSINESSFIRST MAGAZINE

BFM | PROFILE

The importance of redefining yourself Like six million other Australian professionals, Simon Sorockyj was unhappy in his career. “When I made the decision to leave the law, I was at a loss where to go next.” Should he pursue a new industry? Did he need to study to advance his career? Or should he find a role in an industry where he already had experience? By Daniel G Taylor

e found the process confusing. “The recruitment and headhunting industry were not interested in my transferable skills or industry knowledge. They focused solely on my degree, training, and capability, which were all legal-related. They said they couldn’t help me get a job outside the law, and to go and get retrained.” However, universities could not help him find a clear career path either. They could not show him how to take an MBA or MEI and turn it into a real-world opportunity. “Thankfully I stumbled across EPR (now Voquest), Australia’s first career management firm.” FINDING HIS CAREER PATH In the ten years before he found Voquest, Simon had worked as a commercial lawyer. He specialised in intellectual property and technology commercialisation. His legal experiences had exposed him to commercial risk taking on the part of his clients. The kind associated with strategy and business development, however in his role as lawyer he was required to be risk averse and conservative, despite his preference for the former In his legal work, he had built skills he could use in any field: • People management: he had led legal staff and maintained client relationships.

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• Business development: he had sold legal services to industry. • Subject matter knowledge: in technology, financial services and communications and their convergence: If he’d stayed in his legal career, his next step would have been partnership in a law firm. This would have bound him to the legal world for life. He had climbed the career ladder and realised it was leaning against the wrong wall. Without Voquest though, he might never have found the right wall. “Voquest took me on a journey of self-discovery to identify my career goals and my ultimate vocation. It was very different from what I thought I wanted.” He thought he would continue to serve the corporate world. However, through the Voquest process he learned he was more valuable to the SME sector. “Voquest taught me how to turn these skills, attitudes, and capabilities into a personal brand. And how to clearly articulate and position that brand to SMEs as if I was a business selling my products to the market.” He also learned an important skill that he had not considered. “I learned ‘strategic networking’ was the way to uncover opportunities that aligned with my personal brand.” Simon found this was a better approach than company-defined roles. For those roles, recruiters seek someone who ticks all the

boxes. They are not interested in the potential value a new employee can bring to the company other than those set out by the company. Strategic networking is a core part of Voquest’s approach. Seventy-five per cent of jobs are never advertised. Strategic networking is a way to access those roles. Voquest has an evergrowing network. They combine their network of Alumni with the personal networks of their clients to find opportunities that suit a client’s personal brand “Strategic networking is a skill to be learned. It involves strategic targeting of individuals that can assist with your career journey.” Once you have identified those people, you need to present your personal brand. You need to be able to convey that within the first 30 seconds of meeting someone. You also need to prove your value by adding value to the other person. Voquest teaches clients how to do this. A NEW DIRECTION Founded in 1993, Voquest has helped 40,000 professionals identify their vocation. The company changed its name from EPR Careers to Voquest in November 2015. The new branding reflects the way the company takes clients on a ‘quest’ to help them find their ‘vocation’. The idea of a quest also captures the idea that the process is ongoing. Voquest does not

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PROFILE| BFM

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BUSINESSFIRST MAGAZINE

BFM | PROFILE

Are you one of the 6 out of 10 people who wish they had a different career?

There is an alarming amount of Australians who are unsatisfied with their careers. For many they respond by becoming disengaged with their roles. Others become frustrated and act out in ways that make them, and those around them unhappy. Statistically there is still a 6 in 10 chance that you are not satisfied or frustrated with your career. That is because more than 65% of Australians feel unfulfilled in their careers. According to LinkedIn’s own research, the majority of the 90+% of professional Australians with a LinkedIn profile are ‘passively’ looking to change careers. If you are unsatisfied with your career, is changing sectors something you should consider, and if so what are your choices? Do you understand what motivates you? Are your skills ‘transferable’. Is there an age where it’s too late to change your career

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path? Should you talk to a recruiter? Do you really want to throw your resume in with the tens of thousands of Australians responding to job ads, when 75% of positions are never advertised? You have concerns and questions. You want to make a change but don’t know what that change should be, or where to start. If you are an Australian professional or executive, the best place to start your vocational quest is with Voquest. We can address all of your concerns and answer all of your questions. We are not recruiters, we work exclusively for you, our client. We help you understand your heart and work with you to discover a career you love. Want to know how? Visit our website to learn more and to arrange a confidential discussion.

PROFILE| BFM

help clients find one position; it partners with them for their working life. For example, millennials can expect as many as 13 career changes, with each role lasting an average of 3-5 years. Voquest frees their clients from having to keep up with the constant changes that affect a career. “The education, recruitment, and training sector do not adequately cater for these changes,” Simon says. Voquest does partner with recruiters, educators, and trainers, but before they direct clients to those services they help clients identify their calling. Firstly, they identify your passion and learn what vocation suits you. Secondly, they develop a clear career path to get to your goal. “This allows you to choose and utilise recruitment, education, and training appropriately.” Many people mistake Voquest for a recruitment company. They are not. Instead, they help professionals and executives discover their ideal career path. Working with Voquest has led Simon to some fulfilling

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opportunities over the past five years, which are aligned to his personal brand in roles as: • Co-founder and CEO of IDATS, which is a loyalty program integrated with Visa Net. • Business Development Manager of Merchant 360 Inc. and its corporate spinoff, VAST Networks. VAST Networks is a US point-of-sale software development company. • Director of Commercialisation for 4EverGreen Lifestyle, a 50plus lifestyle and experience services business. • CEO and Co-Founder of The Innovation Co-Operative Limited (THINC). This is an innovation and growth accelerator for Australian small business. These opportunities are milestones as Simon fulfils his calling. They give him a chance to provide strategic direction, innovation, and growth to start-ups, small businesses and corporate spin offs via the commercialisation (strategic development and implementation) of their intellectual property (idea, products and markets) via business

as possible methodology. Simon gets to draw on his transferrable industry, management and business development skills and utilise his corporate and legal experience.. “None of this would have transpired without the Voquest process.” When the team at Voquest approached him to take up a role as general manager, Simon jumped at the chance. He believed in the Voquest business as it helped him find fulfillment in his work. Another factor also influenced his decision to accept. The choice was “aligned with my personal brand, career plan, and vocational quest.” Simon has helped Voquest develop a new strategy. The company will focus on expansion. The rebranding from EPR to Voquest is part of remaining relevant to the marketplace. He is also making refinements to the business model, and enhancing the client experience. His overarching aim is “to meet the future career needs of Australians as Voquest did for me years ago.” In the next 12 months, Voquest will launch several new initiatives. They aim to help professionals even more, whatever their age, industry, or career objectives. The initiatives include: • Career plans for the portfolio, entrepreneurial, and international markets. • A subscription service offering career matching for members following their initial Voquest program. • Programs to reach new demographics, including students, graduates, seniors, incoming and outgoing internationals and blue-collar workers. • Making programmes available in new locations, including Brisbane, Perth, New Zealand, and Asia. • An online learning delivery platform to complement the physical programs. “Voquest is the heart (engaging your passion) and the head (navigating the recruitment, education and training maze) of your career journey,” Simon says. BFM

BUSINESSFIRST MAGAZINE

BFM | BUSINESS

ALPHABET Google’s mid-life crisis or Apple iPod moment? Google’s announcement that it would rebrand itself and restructure into a new holding company called Alphabet, is notable not just for its news value – but its timing writes Paul Lin.

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‘

The Brand Formerly Known As Google’ intends to be a conglomerate with Google becoming its largest subsidiary, while owning a variety of businesses including Nest (home automation), Calico (bio-tech) and Google X (self driving cars, innovations). Not just a search engine business running some innovations projects. The announcement has come just before another milestone moment for Google. On 4 September, the tech giant will be celebrating its 18th birthday. Google changed the technology scene forever with its unique search algorithm and innovative advertising-based model. But now, at 18 years old and no longer the young and energetic start-up it once was, the question is: what’s next? Is Alphabet signalling a reinvigoration of Google’s spirit of innovation, or is it a knee-jerk response from a business that’s starting to realise it’s getting old, as Zune and Bing was to Microsoft in the early 2000s?

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History suggests Google is in the midst of a mid-life crisis but if that’s the case, history also suggests Alphabet could be its major new turning point. Almost all the major tech companies of a certain vintage have gone through this mid-life crisis phase, leading them to humbling failures or dizzying new heights. Microsoft’s mid-life crisis came in 2000 when it tried to replicate the success of Apple and Google with ‘me-too’ products, even though its core business of selling Windows software was still sound and profitable at that time. When Apple got rave reviews with their iPod, Microsoft responded with Zune. When Google started attracting attention over the possibilities of the Internet and search engines, Microsoft created Bing search. Neither of these products are considered successes, and today, Microsoft has slowly faded out of relevancy in the tech space, with Apple’s iPhone – a single product – producing more sales at $40.28 billion, than everything that Mic-

rosoft produces combined at $26.5 billion, in the 2nd quarter of 2015. When Google came along and sold advertising on the back of collecting data, the industry and the business world at large praised this innovative young start-up’s darling for doing something different and succeeding. This attention kept Google young and fresh and ‘cool’. Today, their big data/advertising model is now considered the default model for most tech and Internet companies and instead, the fashionable topics in Silicon Valley revolve around future tech such as clean energy, wearables and biotech. When Google announced changes to YouTube with its 360 degrees videos or the latest ‘material design’ update to Android nobody paid too much attention – but as soon as Elon Musk of Tesla starts talking about Hyperloops, implementing supercharger networks or space travel he gains international acclaim as the ‘real life Iron Man’. This redirection of attention and relevancy in the technology industry must have some sort of psychological effect on the founders, leadership and employees at Google. In retrospect, the move to Alphabet started a long time ago when Google embarked on the ill-fated Google+ project to compete with Facebook back when social networks were cool, or when Google tried to impulsively jump into the wearables space with Google Glass without considering the social issues and technological constraints. Whether Alphabet is a genuine business initiative to generate new revenue streams, a restructuring move to consolidate Google’s businesses and structures, or an impulsive need for attention remains to be seen – but a mid-life crisis can work wonders, too. Microsoft’s aforementioned failed attempts resulted in Xbox, and of course, without Apple’s mid-life crisis in the early 1990s we wouldn’t have iPod, iPhone and iPad and the underpinnings of modern mobile technology and paradigm. BFM

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BFM | PROFILE

Finding sanity in business When a business practitioner and his client come together to form their own company, you get the best of both worlds; intimate knowledge of client needs and a combined set of business skills that can truly move a business forward. Such was the case when Roger Norton and Jack Crumlin joined forces to create Norton Crumlin & Associates. Business First talks to the pair about their business philosophy.

dvising long-standing businesses about their practices can be tricky. Many company leaders often feel that they don’t need help, even after they have engaged someone to advise them about strategy and change management. The trick to successful advisory is trust. With that in mind Jack Crumlin and Roger Norton founded their business. Their aim: to offer a kind of advice sanctuary for executives. “We’ve built a reputation for helping keep executives safe and sane,” Crumlin says. “We give them a place to go to that they can trust. We fly below the radar, in so far as it’s not about us. It’s very much about putting the time and effort in for the benefit of executives and their teams, and that allows us to work at all sorts of levels.” Norton and Crumlin had worked together for six or seven years prior to starting their business. Crumlin was in fact a client of his business partner. “It just so happened that the worlds aligned,” Crumlin says. “We’d always enjoyed working with each other, so it gave us a chance to try it for real. From my own point-of-view, it was time to have a go at my own business, which I’d never done before. I’d always been a corporate animal, for want of a better word, and it was time to see if I could actually generate business activity on my own account and test the network that I thought I had.” For Norton, the pair came together to make a difference in people’s business lives. “To narrow that down further,” says Norton, “it was to help senior executives and organisations in all

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PROFILE| BFM

Roger Norton

sorts of sectors fulfil their goals. “Another reason Norton Crumlin was founded was because I wanted to work with Jack, who was a client of mine and someone I respected and admired enormously. I thought collectively we had something to offer. I was already in the consulting game and here was an opportunity to add to that. There were a lot of client-based reasons, market reasons, as well as personal reasons, but in essence it felt right, so we just went with it.” Crumlin believes he had lost some perspective working in the corporate environment. It was from this that the keeping executives ‘safe and sane’ mantra came from. “I’d actually seen executives lose perspective on a number of occasions, and, indeed, my own experience wasn’t that flash. It became a bit of a personal mission for me that, if I could do something going forward to prevent other people ending up where I had allowed myself to be, then that would be a really good purpose and mission. That has underpinned the whole of the business.” “It was a bit of an opportunity for both Roger and I to challenge

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ourselves by starting a brand-new business.” Those corporate roles that Crumlin speaks of were as CEO of AAP Communications Services and a partner at Ernst & Young and PWC. He says these positions taught him four key things. “The first one is what works in one environment may not necessarily translate to another environment. Just because you’ve been a partner with one firm doesn’t necessarily mean that it will translate to another even if the roles are, on paper, similar. That’s been something that’s been really useful for me to reflect on. It translates into the coaching work that I do with executives as they transition from one organisation to another, or from one role to another. “Secondly, I could pretty much do anything if I had the right people around me. A great mentor of mine gave me advice, which was, ‘Don’t do anything hasty with respect to senior members of your team within the first 21 days, i.e. don’t confirm an appointment or don’t necessarily let someone go’. I think that was really good advice. Make sure you’ve got the right people around you.

“Thirdly, how to deal with stakeholders is a very important aspect. I had a group of people that I worked with or reported to, and then, in one night, they were all changed. I found myself feeling somewhat exposed to a new group of stakeholders and that was a really important lesson, and something that we use to great effect in the coaching work that we do. “The final one comes back to the safe and sane part. It is trying not to lose perspective. Sometimes it all gets a little bit serious when you’ve got these senior roles, and you can lose sight of the important things in life.” Norton simplifies, but in no way downplays the ambition of starting the business. “It was more around doing good work with good clients and making a living in a way through impacting their lives,” Norton says. “It wasn’t as if we had a plan that said it’s going to be this size, this style, this many employees. It was more a question of the impact we could have.” Norton knows about impact. He spent 21 years in the navy as a specialist in all support services that go to operating a warship at sea before moving into business. “What I learned out of that, in a technical sense, was planning and operating performance management in unusual work environments at the simplest level. At the most valuable level I learned how to work for and with people to get jobs done. Then there is leadership (Norton finished in the navy as a Commander), team work, and those terms that people just roll their eyes at but I interpret them in a different way, which is to work for and with people.” In the navy Norton also learnt how to attack risks in organisational change. “When I started this internal consulting gig 20-odd years ago inside the navy I was in uniform. I learned how to negotiate barriers. That was a valuable piece of learning. “I also found an understanding of the value and the importance of working in an organisation with a clear purpose. I spent a lot of time in organisations where their

BUSINESSFIRST MAGAZINE

Helping Executives be successful and keeping them safe and sane in the process

If you are a senior executive or aiming to become one, there are two questions that you will be asked a lot:

HOW IS WORK GOING?

AND

HOW ARE YOU GOING?

How you answer these two questions can have a profound effect on you, your team and your organisation. If your answer to these questions is positive, then you donâ&#x20AC;&#x2122;t need to read any further. But if it is a negative then maybe you need to do things a whole lot better. And you might be thinking about these two questions when you should be focussing on the more important things in life such as your family.

So to help you with these two questions, who do you talk to? Firstly perhaps it is someone outside your organisation who can provide an unbiased perspective. Secondly it would be helpful to find someone who has first-hand experience as a senior executive like you. Thirdly it needs to be someone you can trust and is easy to talk to.

If you have ticked all three of these boxes then you should contact Jack Crumlin & Roger Norton of Norton Crumlin & Associates. Jack, Roger and their team of associates are experienced across all aspects of business in both public and private sector in Australia and overseas. Their number one priority in business is to help Executives like you be successful but also keep them safe and sane in the process.

Their approach to business is based on four foundations 1. Getting it Right 2. Getting it Done 3. Getting it Across and 4. Getting Along Norton Crumlin & Associates will use this simple framework to assist you in identifying your strengths and also bridge any gaps that may exist to help you reach your full potential.

For more information on how Norton Crumlin & Associates can help you please visit their website at www.nortoncrumlin.com.au or drop them a quick email at roger.norton@nortoncrumlin.com.au or jack.crumlin@nortoncrumlin.com.au.

PROFILE| BFM

purpose is not as clear as it could be. As a consequence, people are confused in what they’re trying to do and why. Something like the defense force has a very clear purpose. I try and replicate that clarity in my work.” Crumlin adds, “When I worked with Roger as a client he would continually push me to think about WHY e.g., why does this business exist; what is its purpose. It’s a question that really makes you think hard especially if you can’t answer it!” Like Crumlin, Norton also sees stakeholder management as important. It was a revelation he had while working within the public sector, in particular the NSW government. “The public sector has a unique stakeholder mix which makes life challenging and is a little different than the corporate world.” “How do you make faster decisions? How do you raise the temperature? How do you raise the sense of urgency? That can be challenging. Creating a sense of urgency at times can be a little more challenging in the public sector than elsewhere. Another one is channelling the passion of the people in the public sector. These are people who are deeply committed to the concept of serving the public. How you channel that is a challenge. It can be something to leverage and really get going with. On the other hand, it can be a blocker. Particularly if something you were doing around organisational change is perceived as impeding their ability to serve their public.” You can see the complementary skills of the pair and why their business is so successful across private and public sectors. No matter what the sector the applied philosophy is the same: it is to help businesses and their leaders ‘Get it Right’ (in terms of strategy) ‘Get it Done’ (in terms of execution) ‘Get it Across’ (leading and communicating) and ‘Get Along’ (collaborating and adapting) “Businesses have to develop strategy; they have to communicate it, execute it ... But that’s got to be done in an environment of short-termism and ever increasing

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scrutiny,” Crumlin says. “Those are the sorts of things that I think executives face a lot of.” “If I reflect on the common themes we are often asked, all of them will relate to one or more of these four areas.” Crumlin says coaching is a valued part of an executive’s development because it provides an opportunity for the executive to step back. “There’s so much going on. Through technology and the various aspects of digital disruption, it’s very rare for an executive to get any time to actually step back and think about what he or she is trying to achieve. Coaching provides that.” “It also provides an external perspective, whereby someone such as myself or Roger can have a view that’s un-biased and not driven by any agenda from within the business. We can ask those silly questions that need to be asked and that seems to be of great value for executives as they are trying to work out the way forward.” All of this has led to Leaders Unplugged, which makes the Norton Crumlin experience available to others on a larger scale. “It’s a website that we created,” Norton says. “The short background is, in facilitated workshops there’s nothing worse than a chief executive standing up with a few comments on the back of an envelope to open a workshop about the future of their business. Their team looks at them expectantly but they leave the session flat. “What emerged out of all of that is that we created a 9-point speaking brief for senior executives called Leaders Unplugged. It’s executive storytelling. It actually gives the leader confidence. They’ve got the content; they just need a process and a structure to it. “ “That’s been a major achievement and really resonated with everybody who uses it.” One of Norton Crumlin’s strengths is that they are able to innovate and this keeps pushing them forward. They have developed a range of IP over the nine years that they’ve been together and developed a lot of material. Leaders Unplugged is

just the first step in a strategy to bring their coaching credentials, experience and intelligence to more people, in a digital manner and beyond. “ “We continue to package up our IP and make it available for others,” Crumlin says. “The next areas for us relates to what we have termed ‘Executive Like Qualities’ and, for the professional services sector, ‘Partner Like Qualities’. Essentially we are building a toolkit for existing and aspiring executives to help them unlock the secrets to being leaders in their fields. The pair are certainly deep thinkers and the next nine years will no doubt be just as innovative as they keep themselves and their clients successful, safe and sane. BFM

Jack Crumlin

BUSINESSFIRST MAGAZINE

BFM | PROFILE

Potential creates opportunity The triumvirate of people who run Bendelta all have different skillsets, but came together to do one thing: create a business that provides strategic solutions to businesses with large flow-on effects for human potential. In doing so, they have led Bendelta to being twice named in Australia’s 100 fastest growing companies in the last five years. Anthony Mitchell, Natalie Ferres and Natalie Archer speak with Jonathan Jackson about building sustainable businesses.

ike any great business, Bendelta was formed by Anthony Mitchell and Natalie Archer in a Paddington pub over a few drinks. Mitchell says, “After a career in consulting, through a propitious set of conditions around the dot-com bust in 2001/02, in 2003 Natalie and I found an opportunity to branch out and create our own consultancy. Having been a partner in a larger consulting firm, it was a really exciting opportunity to create something from scratch to align fully with our values.” Archer says, “For us it was great timing to think about setting up our own business and after a few drinks at the Paddington Inn we came up with the core concepts and a name on the back of a coaster.” “We wanted to found a really successful commercial business, but we also wanted it to be a business that would make a meaningful contribution to humanity,” Mitchell says. The name is a deliberate mismatch of Latin and Greek, ‘bene’ meaning good or positive and ‘delta’ being the Greek symbol for change. “That was the concept of this company,” Archer says. “We wanted to have a positive impact on the world. Everything really was about saying, “How do we set up a business that is fun to work at and a great vehicle for self-actualisation, reaching our own potential and the potential of anybody who chooses to work here while making sure

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that the impact that we’re having is one that leaves society in a better place?” Indeed, that has flowed through to the Directors’ lives beyond Bendelta. All three have significant pro bono roles, with Mitchell being Chairman of Amnesty International Australia for the last five years and Archer having held Board roles with World Vision and Odyssey House. Ferres has been involved in pro-bono research and practice in selecting and developing oncology specialists for the past 10 years. Mitchell says, “We had a deep-seated view that the two levers that really make a difference to organisational performance are the quality of the strategy and the quality of the leadership. What we found was that there were firms out there that were very good strategic advisers but they didn’t really understand the human dimension of organisational success. Then there were people who understood the psychology of human beings and of leadership, but didn’t really have a strong grasp on the strategic and commercial realities of running a business. We wanted to create a firm that would bring those two forces together.” As both Archer and Mitchell had both business and psychology degrees, the match was ideal. Following this genesis, it was time to bring in a third partner. Mitchell and Archer approached Dr Natalie Ferres, the author of the textbook People Development. All

three of Bendelta’s Directors have a very strong scientific orientation, along with a very strong humanistic pull – they understand the power of left-brain/right-brain combinations and implement this into their consultancy. Ferres has become a key part of Archer and Mitchell’s vision. Ferres says, “It was serendipitous that Anthony and Natalie chose to bring me on board. As an MBA lecturer at the time, my PhD research was around how emotional intelligence and transformational leadership can impact organisations. This matched well with Bendelta’s focus on the centrality of people in achieving business outcomes. But joining Natalie and Anthony was more about a match in values and an aligned sense of purpose.” Mitchell sees it as Ferres taking a punt on Bendelta, not the other way around, but it has obviously proved to be a good fit. “We never looked back from there, when the three of us started to grow the business into what it is today,” Archer says. Twelve years on from its creation, Bendelta is a pre-eminent consulting firm, with four offices across Australia’s eastern seaboard, serving the private, public and NGO sectors both domestically and internationally and winning numerous awards. Of course, advice differs depending on the nature of a business’s problem, but the approach is always dedicated to delivering

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PROFILE| BFM

holistic solutions based on both strategy and leadership factors. When asked what their best pieces of advice to those establishing companies would be, all three gave interesting answers. “Drawing on what’s made us successful is that culture is number one and it’s inviolate,’ Ferres says. “It’s critical to keep a strong focus on maintaining the positive culture you want and require.” Mitchell says that companies should always keep one eye on the long-term. “Make sure that you’re okay in the short term, but the focus you maintain should always be with a longer view.” Archer says “We believed we could create something where we can do the best kind of work, compete with the elite in the market place but re-design the rules of the game for how a business should operate.” Thus they created the ‘Bendelta Code’: an internal set of nine principles based on trust and judgement. The Code posits that while results are important and Bendelta needs to succeed commercially as a business, there are no rules laid down to employees. There is only

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trust, judgment and the flexibility as to how people choose to work and knowing that their achievement outcomes are clear. “It’s about saying we want to recognise and support you as an individual in terms of your aspirations, but we give back and support one another and act as a team. These principles are, in a sense, symbolic of our idealistic view from day one of what a working environment should be. Nothing is more important than getting people who are aligned with that Code and I think that’s probably stood us in really good stead.” Mitchell agrees. He says, “Our business obviously is advising organisations on how to approach strategy, leadership, culture, and what we’re saying is, we feel it’s really important that we take the same medicine that we prescribe. All of the principles in the Bendelta Code are what we would advocate to our clients. We aim to be the paragons of living what we espouse.” The recent rapid growth of the company traces back to a little over four years ago, when the Directors set a five-year strategic plan, which they are now close to

completing. Archer says, “It’s a dynamic world so we’ve been making adjustments to it as we go. We’re right on the precipice at the moment of determining where we want to go next. We’ve very much achieved the goals that we’ve set for ourselves in terms of the growth that we want and the impact that we wanted.” Ferres says, “We have followed our vision; that passion to give and to teach, and seen how the work that we do can flow into people’s lives at the same time as improving leadership effectiveness and business goals. We are currently looking at some innovative and highly differentiated ways of ensuring that people and organisations are reaching their potential. We are investing in the design and development of targeted, impactful methods to ensure that people are the best versions of who they can be.” Just as Mitchell and Archer dreamed when they started out, Bendelta has become the realisation of the three Directors’ collective desire to help people achieve more of their positive abilities. BFM

Left to right: Natalie Archer, Natalie Ferres and Anthony Mitchell

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BFM | MARKETING

Four essentials for real-time customer engagement When people get a marketing message at an inconvenient moment or completely out of the blue, more often than not, that message is immediately relegated to the digital wastepaper basket. The message may be targeted and personalised, but if it comes at the wrong moment, it is likely wasted on that individual writes John Timmerman.

s we are increasingly bombarded with marketing messages in all forms and via various channels, the more necessary it is to switch off and ignore them just to get through the day. With very few exceptions, most of us simply can’t and don’t pay attention to badly timed messaging. No doubt you’ve noticed that, consciously, you selectively acknowledge just a handful of the thousands of advertising and marketing messages to which you are likely exposed each day. While you may subconsciously absorb more than this, your limited conscious responses to such marketing messages illustrate just how few of them make it through your cognitive defences. One of the best and most effective ways for marketers to break through these defences is to deliver the right message to the right person at the right time. Appropriate timing can be the difference between consumers actively engaging with a message

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MARKETING| BFM

or relegating it to the mental garbage bin. However, delivering the right message at the right time can be very difficult. First of all, how do you determine the right time? Is it identified by a certain action by an individual, such as visiting a particular website or physically entering a particular store? Or is it marked by someone’s regular, recurring habits, as tracked by digital devices? Whatever

the trigger, making marketing communications timely, as well as targeted and personalised, is now vital. Many marketers continue to miss out on opportunities to improve their real-time customer engagement via interactive channels because they aren’t able to react quickly to changing conditions. Often, marketers have trouble understanding specific customers, and also where that customer’s attention is focused at any given time. This limits their ability to deliver precisely-timed and appropriately-targeted offers, or to shape the customer’s journey of interaction with a brand. Real-time customer engagement is a perfect opportunity for marketers to meet specific customers’ needs and deliver on their brand promise. However, there are lots of moving parts that have to be integrated and coordinated to develop a multi-angled understanding of the customer, and his or her categorisation, before you have an effective strategy for handling real-time interactions. Despite the challenges, technology such as data analytics and real-time interactive marketing platforms can make effective, time-based, and targeted messaging possible for marketers. Such technology can facilitate the four essential things a marketer must do to drive effective real-time customer engagement: 1. DETECT Identifying who you’re dealing with at the point of customer interaction is crucial to timely engagement. While some customers drive high amounts of revenue, others can drain resources and cost more to serve. So it is vital that marketers understand the differences between the two types of customers and adapt their interactions accordingly. They can do this using time - or activity-based messaging to encourage better responses from those customers who are generally harder to connect with. A data management platform can help gain individualised insights about the customers, which can be used to inform time-

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based messaging decisions. The right analytics tools can further individualise engagement, and can even help you learn from devicelevel interactions. 2. DETERMINE Customer experience management is a crucial focus point for marketers because, if they are not actively managing the customer journey, then somebody else might step in and manage it instead greatly weakening the power you have to engage with that customer. It’s important to take control from the first touchpoint of the customer’s journey to be able to effectively manage their engagement journey later on. By using analytics tools to recognise individual customers and track their activities, marketers can determine what their journey should look like, and when to connect. 3. DECIDE You need to be able to decide which offer is most appropriate for a customer at any given time and via various channels. Real-time interactive marketing technology leverages individualised insight to better to decide which message will be most effective for a particular consumer at a particular moment. Deciding which offers are the most relevant will require making difficult decisions very quickly. Automated decision technology can make determinations based on a number of different rules and attributes, giving you new opportunities to target customer offers. 4. DELIVER Getting your message to the targeted customer at the right time is highly important because, if done incorrectly, it can negate all the work put into managing customer experience. Regardless of whether it’s a paid, earned, or owned channel, you need to time your message strategically to optimise the customer journey. If you’re not delivering that key message at the right time, it doesn’t matter how good it is, you’ve lost an opportunity. BFM

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The rare qualities of a CEO The feeling that mining is dead in Australia, is one that is more doom and gloom than reality, especially when you look at what Lynas Corp is doing in the rare earth sector. Jonathan Jackson spoke with Lynas Corp CEO Amanda Lacaze about what is behind supplying high quality rare earths.

s the world strives to become more energy efficient, rare earths have become essential inputs to high technology, high growth, future-facing industries. At this stage it’s probably best to have a quick look at what rare earths actually do. According to Geoscience Australia, the most significant increases in demand for REO is attributed to a predicted expansion in hybrid cars, followed by petroleum catalyst, glass manufacturing and polishing and multi-level electronic components. The smallest sector by volume, but largest by value, is europium and terbium, which are used in the production of phosphors for televisions and energy efficient light globes. Lynas has a portfolio of aligned assets to explore, develop, mine and process rare earth minerals. These assets are: • Mt Weld – one of the world’s highest grade rare earths mines, located 35km south of Laverton in Western Australia; • Mt Weld Concentration Plant – commissioned in 2011 and located 1.5km from the mine site; • Lynas Advanced Materials Plant (LAMP) – an integrated manu-

Lynas and NTT ICT first joined forces in 2011 when Lynas was still a development company with ambitious growth plans, they needed a strong, agile technology partner in NTT ICT from day one. This relationship has continued to grow including to scope, plan, set, specify, and implement across Lynas’s internal IT infrastructure. “We’re constantly working with Lynas to identify potential issues and growth opportunities. It always starts with a conversation – let’s talk about what can be done and what the potential needs are. By investing time in knowing their team and their business goals, we’re able to work together and cut a lot of red tape.” - Alan Frazer, Business Development Manager, NTT ICT

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facturing facility, separating and processing rare earths materials, located in the Gebeng Industrial Estate (GIE) near the Port of Kuantan in Malaysia. Overseeing all of this is Lynas Corp CEO Amanda Lacaze, who prior to the minerals space spent time in marketing. She says her business grounding came in her five years spent in the marketing department. “I learnt most of the basic rules about how a business should work at Nestle,” Amanda says. “Nestle became the biggest and most successful food company in the world by having an unrelenting focus on customers – because they are the lifeblood of your operation.” Amanda learnt a lot of her basic commercial skills there. She says the best place for any business to be in a market is at a premium quality and premium price … “that way you should actually make the most money of anyone in the market.” From there Amanda took positions with ICI in an industrial marketing role and Telstra, where it was a back to basic approach to customer delivery and determining her skills in managing people and money. It is managing people, however that as at the forefront of Amanda’s own work ethic. “It’s very strong in my belief that as CEO there is nothing that I can do, no matter how smart I am or how hard I work, which is as powerful as getting every person in the organisation to do their best work every day. “To be able to do that I need to properly engage with everyone in the organisation. They need to know me because I need them to trust me when I ask them to do things.

“Most people want to do something which is valuable and which is valued. If you take the time to be crystal clear in that, people will give you their best work every day.” It is this method of management that informs how she runs Lynas Corp and the fact that as Peter Drucker once said, ‘the purpose of business is to make money. To make money what you need to do is that you need to be aware of what your customers want’. “I say this to my guys,” Amanda says. “There’s people out there and they are called customers and they’ve got money. If we make or do what they want at the price that they want, they’ll hand their money over. Our job inside is to make sure that we make it for less than we can sell it and that’s the way that we make money. I’ve worked across a variety of industries: consumer goods, industrial, agricultural, IT&T and now resources. It’s the same in every industry. You need to focus on what it is that your customers want, you need to do it better than anybody else and then you will be successful.” With this attitude Amanda has been able to turn the fortunes of Lynas Corp around. When she came into the organisation 14 months ago, production was unstable and inconsistent. “Our cash management was poor, our cost structure was top heavy and middle heavy and bottom heavy and every way heavy,” Amanda says. “Our focus on customers was almost non-existent other than it was words which were spoken. When I run a business you will never find posters saying these are our values or this is our vison because there is a difference between

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what you say and what you do and you can’t have slogans unless what you say and what you do is aligned. “If you say that customers matter but you spend all of your time sitting in your office and not engaging with them then they don’t believe you. If you say people matter, but you spend all of your time sitting in your office not actually engaging with your staff, they don’t trust you. If you say hard work matters but they see you spending a long day with long lunches and not much else going on, then they spot the difference between the stated values and the lived values. To turn this business around, it was about being really crystal clear about these things.” This is especially crucial in an organisation with high risk factors. Take the manufacturing plant in Malaysia for instance. “We have a very large manufacturing facility in Malaysia which has a high, inherent risk in operation. If we say safety matters but we take shortcuts on processes or equipment or we don’t investigate incidents appropriately then they don’t believe safety matters. I don’t do a whole bunch of posters that say safety matters, but I do go in and inspect every time that we have even a high potential incident. I go in and inspect so that they can see it actually matters enough to me to go and look at it. That is the same of the other managers in the production area.” So Amanda came in and integrated simple rules around simple values. She identified the things that drive the business success and relayed those back to staff. That in turn allowed her to create stability within the organisation and to create an inclusive culture. Some hard decisions were made, as they always are in a restructure, but they have worked out for the best and the company is now doing well again in this very niche rare earths sector. Without going into a full explanation of rare earths in Western Australia, it can be said that Lynas Corp’s deposit at Mt. Weld in Western Australia is recognised as probably the highest quality known deposit. “The rare Earths are valuable because of a series of properties

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that they have including their conductivity and their connectivity and the way that they interact with other materials,” Amanda says. “They are a functional material. We have what are called light Rare Earths primarily in our deposit and there are four and we also have some heavy Rare Earths and each of the different elements behaves differently.” Interestingly rare earth was used in colour TVs because it gave the red colour. “If you talk about applications, if you think about your car, every car that drives around has typically between about one and five kilos of rare earths in it, in a variety of different applications: all of the things that move in your car typically have little motors in them,” Amanda says. “Motors use permanent magnets. Rare earth’s permanent magnets are good because they are light. If you’re talking about energy efficient cars, the weight matters. Therefore if you use rare earths as the permanent magnets in these little motors, then the car weighs less and it’s more fuel-efficient. Rare earths are no longer used in televisions, but as technology has changed so too has the use of functional materials. Amanda says people would be surprised by what rare earths are used for. “One of the big growing segments for Lynas is wind turbines where they are moving from a gearbox operation to a direct draw operation which uses four to six tonnes of rare earths and makes that one wind turbine work a whole lot more efficiently.” In essence the rare earth market is a changing beast, which is a plus for producers such as Lynas Corp. This is especially the case as the cost of rare earths is currently quite low and end users keen to have an independent and reliable supplier of rare earth’s products. Lynas Corp has just done a deal with a Japanese company for this very reason. While the largest manufacturer and commercial market is China, Japan is second in the pecking order and are focused on ensuring supply to their automotive industry which is one of the most important industries in Japan.

The management team at Lynas Corporation, led by Amanda Lacaze, has done an outstanding job at bedding down its Rare Earth Oxide production facilities in Western Australia and Malaysia. It seems to have now reached steady-state production and the Company is now shifting its focus to product quality optimisation and developing additional markets for its expanding production profile. The solid operational results have been somewhat masked by price weakness for rare earth oxides but we believe Lynas is now established as the leading non-Chinese supplier of rare earth products for environmentally sustainable applications such as wind turbines and hybrid-electric vehicles. - Patersons Securities

“That’s the market that we operate in and it’s not as orderly as I would like it to be. Certainly we’ve spent the last 14 months really focusing on getting our house in order and we have built good, strong relationships with a number of customers. “Our task now is to really be working much harder on the market side. The second thing which I think is quite important is that a lot of the applications for rare earth products are going to be environmentally sensitive products. If you’re buying a Prius because you think you’re doing well for the environment, you don’t want the rare earths to have come from a difficult environment. Certainly there are some Chinese manufacturers who manage the mining and processing in a very responsible way. There is also a lot of illegal mining that goes on in China. “One of our strong points is that we can assure the provenance of our product in an environmental sense right from the mine to the finished product.” Some of the huge growth areas in this space are cars, technologies that reduce carbon emissions and wind and Amanda intends to put Lynas at the forefront of these. Under her guidance the company is now in a strong position to push forward and the team is crystal clear on their mission. They are guided by Amanda’s drive to create an achievement focused organisation. Which she has done well to create in the 14 months she has had to turn the business around. BFM

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BFM | CEO

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CEO| BFM

5 Practices every CEO should adopt to help their business thrive For innovation to thrive in an organisation, the CEO plus Board of Directors must actively promote the right culture and this may not always be simple. There are five fundamental practices the CEO must champion to ensure they are always at the cutting edge of innovation.

Steven Bowman

is a global business advisor.

DESCRIBE YOUR CURRENT CULTURE VS DESIRED CULTURE This is not a group effort, rather an understanding which helps define what culture you wish to create. As a CEO, you must recognise and acknowledge the current culture. • Why is it this way how have you allowed it to be that way? • What impact is it having on your business performance? • What drives the culture to remain the same? • What is it going to take to change? Next, you need to be able to describe what kind of culture is required, and how this connects to your business strategy and vision. In describing the culture you wish to create, there are five key areas that you should consider that will facilitate a deeper understanding of this culture: 1. Vision, values and strategy – Take your organisation’s Vision statement, dust it off, and ask yourself: What is the culture I wish to create that will drive the Vision of the organisation. What is the culture I wish to create with reference to my values? 2. Accountability and Transparency – Ask yourself what messages you want to put out regarding accountability and transparency. What disclosure will you provide regarding processes, procedures and assumptions? What are you willing to commit to? 3. Internal Relationships – Ask yourself what culture around internal relationships do you wish to create? Is it about silos? Teamwork? Perhaps you want staff to treat other staff as if they were customers? 4. External Relationships – What type of relationships do you wish to facilitate with external parties? 5. Creative Edge and Innovation – How much innovation do you want

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your staff to show? How important is being at the creative edge to you and the organisation? Do your staff realise they can innovate from their current duties and responsibilities, or do they have a fixed point of view that this is not for them? LEAD WITH QUESTIONS Great CEOs use questions to encourage full participation and teamwork, to inspire creativity and encourage outside-the-box thinking, to empower others and to solve problems resourcefully. CEOs, through asking questions, can cultivate a culture in which questions are welcomed, assumptions are investigated and new possibilities to solve problems are explored. Why questions? Questions promote an inquisitive way of life in an organisation. Such inquisitive behaviours build an innovative climate, a culture of accountability and a truly conscious organisation 3. Lead the Way through your mindset, behaviour, symbols and processes – As a CEO you will have to become the embodiment of the culture you would like to create. This can be done by establishing mindset, behaviour, symbols and processes with regard to the way staff, stakeholders, and customers should be treated and the way business objectives should be pursued. Your behaviour and your decisions send a message to your staff about how people are expected to behave, which in turn sets the cultural standard for others to follow. To consciously model the way, continually ask the following questions... • What mindset is guiding my actions as a leader? What mindset do I want my staff to adopt? • What would it take for me,

through my behaviour, to create an environment that promotes this culture? • What symbols are required to support this culture? • What processes are required to support this culture? 4. Promote a Common Vision – CEOs create and articulate vision and strategy, which can provide the cohesion that enables all people to, at the very least, understand why they are doing what they do. CEOs share this information freely and articulate the vision of the organisation to those who have an interest in the organisation. Continually ask the following questions... • Do I communicate my values and vision in the things I do, how I spend time, and what I consider important? • What would it take for me to articulate a vision of the organisation when things are unpredictable? • What would it take for me to share power and information and still maintain accountability? 5. Foster collaboration and build spirited teams – CEOs actively involve others and empower staff and stakeholders to embrace infinite possibilities and function in a state of creative expansion that lets them go over their limits everyday. This creates a hotbed of innovation. Fostering collaboration and building spirited teams can be initiated by: • A willingness to receive all points of view by welcoming and hearing all perspectives, without resisting or reacting. • Supporting staff to envision that there is no limit to what they could create by facilitating change constantly and encourage staff to discover more expansive and innovative ways of doing things. BFM

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BFM | ASIA

Export essentials: Opportunities abound in South Korea South Korea is Australia’s fourth largest trading partner and third largest export market. This close economic and trade partnership has been built on South Korean demand for high quality Australian goods and services writes Andrew Watson.

outh Korea is Australia’s fourth largest trading partner and third largest export market. This close economic and trade partnership has been built on South Korean demand for high quality Australian goods and services. This relationship has improved further with the signing of the Korea-Australia Free Trade Agreement in 2014, which reduced barriers to trade between the two countries. Understanding the opportunities available to Australian SMEs, as well as the challenges that exist, is crucial before deciding to export to South Korea. OPPORTUNITIES FOR EXPORT South Korea’s rapid historical industrialisation and high income economy have created strong

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demand for imports in a range of key industries that Australia is well-placed to provide. In particular, excellent opportunities exist for Australia’s mining, agriculture and services sectors. Australia’s mining sector has benefited from South Korea’s lack of natural resources. This has been to the benefit of Australia’s iron ore and crude petroleum industries – with South Korea’s growing population, demand is likely to continue for raw materials such as these. Considerable opportunities also exist for the agriculture sector, with Australia being the third largest supplier of agriculture and food-related products to South Korea. In particular, South Korea is an important market for Australian beef, with beef exports valued at

A$942 million in 2014. With the free trade agreement now in force, barriers to the trade of beef, dairy, fruit, vegetables, sugar and wheat are set to ease, making market access easier. Excellent opportunities also exist for the services sector, with Australian service exports to South Korea worth A$1.4 billion in 2014. Two service sectors in particular that could benefit from the opportunities in South Korea are the education and tourism sectors. South Korea is Australia’s third largest source of foreign student enrolments after China and India, and our ninth largest source of visitor arrivals. UNDERSTAND THE RISKS South Korea’s business climate outperforms most other advanced economies, but as when entering

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ASIA| BF

to leverage their networks. Establishing on-the-ground partners, advisers and suppliers can be invaluable when operating in South Korea, especially for SMEs that do not have a local presence. Local networks can also be a great source of advice and support. The Australia-Korea Business Council is one organisation that can facilitate such meetings. It is dedicated to building links between the two business communities and is a good place to start for networking with potential business contacts. Finally, SMEs should consider their financial options and make sure any decision to enter a new market is based on a sound financial footing. Banks may be able to offer a secure loan or commercial bill facility to help finance export contacts. Alternatively, Efic, Australia’s export credit agency may be able to help.

any new market, it is important to understand the risks when entering the South Korean market. The local language and business climate are potential barriers to doing business. More than 50 per cent of respondents to Australia’s International Business Survey 2015, identified local language, culture and/or business practices as the dominate barrier to doing business in South Korea. Another risk regularly highlighted by exporters are regulations that favour local firms. A key characteristic of South Korea’s development has been the existence of Chaebols (a conglomerate of family-controlled firms) that participate in most areas of business. These Chaebols exert considerable market power, which can pose problems for competing firms, both domestic and foreign. Being aware of this characteristic of the South Korean market is important in order to better understand potential competition. PATHS TO ENTERING THE MARKET There are a number of steps that Australian SMEs can take to overcome any risks and take advantage of the excellent opportunities in South Korea.

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Seeking advice from experts should be the first step any potential exporter takes. Austrade, the Australian Government’s trade and investment agency, provides a range of services, including general advice and support on any possible decisions, and in helping to identify partners for business through its network of contacts in South Korea. In addition to advice, it is important for potential exporters

Oz Nature is a NSW-based wholesaler of chilled and frozen meats, specialising in high quality wagyu beef. Established in 2004, Oz Nature’s founders noticed a growing demand in South Korea for Australian wagyu beef, which was going unfulfilled due to a lack of a steady supply chain. Oz Nature exports its products solely to South Korea, where they are distributed to wholesale customers like department stores, restaurants and butcheries. The company has created an exclusive brand for the Korean market, ‘Oz Nature Wagyu’, while its other products include a wide range of chilled and frozen beef products. All of Oz Nature’s products are 100 per cent Australian and are primarily sourced from Queensland-based beef producers. While Oz Nature has been success-

CAREFUL PLANNING FOR SUCCESS South Korea offers excellent opportunities for Australian SME exporters thinking of making that next step in their business strategy. But before doing so, careful planning is needed to first identify the opportunities, then understand the risks, and finally chart a path into the South Korean market. BF

Andrew Watson, Executive Director, Export Finance, Efic

fully exporting its meat to South Korea for over a decade, the business needed additional working capital to fund a rapid increase in client demand. These funds would be used to pay for increased orders from suppliers, and to keep shipping and distribution running smoothly. Oz Nature was unable to secure finance from its bank, due to the size of its business and the lack of security available, which are challenges that many SME exporters face. Efic was able to provide Oz Nature with a A$400,000 export working capital guarantee in support of its export contracts into South Korea. This guarantee allowed Oz Nature’s bank to approve the finance that the company needed to keep up with demand and allow the export business to continue growing.

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BFM | PROFILE

Flying high and travelling in the right direction Peter Nottage takes a great deal of satisfaction in Cobham Aviation’s ability to give its people the opportunity to grow and develop, as well as solve customer problems so that they are delighted in what the company does. Peter speaks with Business First about dedication to people, values and strategy.

t goes without saying that if you have people aligned with your strategy, your your business, it is easier to hit your milestone markers. When Peter Nottage took over as CEO of global operations for Cobham Aviation, this is exactly what he set out to do. “You have to make sure that there is understanding and alignment among staff with your vision,” Peter says. Everything after that falls into place, including client satisfaction. Keeping clients happy has been a major focus of the company for

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a long time and through several growth phases. Let’s first have a quick look at what the company does, to understand why its values alignment is so important. Cobham Aviation Services is a Sector within the Cobham Group that delivers outsourced aviation services for customers worldwide through military training, special mission flight operations, outsourced commercial aviation and aircraft engineering. It’s a perfect fit for Peter who was an aircraft engineer with the National Safety Council of Aus-

tralia, before working his way into management positions. His time as an engineer grounded him well and informs the way he acts as a leader. “I leant some significant lessons during this time,” Peter says. “I learnt that success is a blend of hard work, listening and watching as you go. I learnt that you should never be satisfied with the status quo; you should always be looking for improvement.” Peter’s mantra is that as opportunities present themselves, you should take them and run with them.

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PROFILE| BFM

This is exactly what he has done in both his personal and professional life. He has held roles as the Technical Director/ Chief Engineer/ Senior Engineer/ LAME with Lloyd Helicopters/ Bond Helicopters Australia, as Managing Director for National Air Support, as CEO for Cobham Aviation Services Australia and now as CEO of global operations. Throughout these roles, he says it has been important to him to keep his feet firmly on the ground. “Never forget what it is like at the coal face and at the front line, where the people who do the job actually are,” he says. This attitude is part of the overall value strategy of the company. And for Peter values matter, as does that inherent focus on hard work and integrity. When he first took the Australian position in 2006, he immediately instigated an aligned company vision which he felt was missing in the organisation. “What Cobham really needed was a vision and strategy, and a direction and alignment behind that strategy. “My team and I created a strategy to be applied to the existing value proposition.” It was to go into several different markets: civil aviation, mining operations including freight and special mission such as rescue operations and to expand territory. “We set out deliberately to have market difference. We had a strong position in the UK and Australia, but we set about to grow into a third territorial market. Today 8% of sales come from the Middle East and that number will grow this year. This was all brought together through a company-wide disciplined approach to the company’s goals and applied to Cobham’s three core market segments as mentioned above: Special Mission, Commercial Aviation and Rotary Wing. In each of these areas, Cobham specialises in the operation, maintenance and modification of aircraft and hold a strong track record of delivering projects and services on time and on budget. Which is what Cobham is renowned for and what attracts its partners.

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“We are proud to partner with leading organisations such as Bombardier and suppliers to deliver high quality, innovative aviation solutions. Our expertise, speed to mobilise and flexibility enables us to consistently meet the needs of the most discerning customers.” In fact, Cobham lives by the strategy that they are about adding value to clients and this has led to several partner extensions. In June, they signed a Teaming Agreement to create an affiliation covering whole life support arrangements for GA-ASI products in the UK and Australia. The teaming arrangement focuses on the provision of support for the Predator® B / MQ-9 Reaper® Remotely Piloted Aircraft (RPA) system currently in operation with the Royal Air Force (RAF), as well as future RPA opportunities in Australia. “Cobham and GA-ASI have been working in partnership for more than ten years to cover UAV whole life support requirements,” Peter said at the time. “This Teaming Agreement enables us to apply our specialist capabilities in supporting sophisticated, fit-for-purpose aerial platforms that perform special missions. We look forward to continuing working with our US partner to deliver such support services.”

In June Cobham was awarded a five-year contract extension by Minara Resources to continue providing fly-in, fly-out (FIFO) services to its Murrin Murrin site in Western Australia. More recently the new Northern Star Resources contract will see mine site workers flown in and out of Jundee, in the goldfields region and the Plutonic mine, east of Meekatharra. “Our sustained success in the regional FIFO market is due to our focus on unique ways to deliver value for our clients, consistent and reliable customer service and strong relationships. “Those partnerships are important to us in understanding the customers and what they are looking for,” Peter says. This is particularly important in a highly competitive industry in which global trade has opened up, but cost of compliance and operations has increased. “The cost of compliance and operations has increased and those factors are counter-balancing increased demand. “This industry is capital intensive. It is heavily impacted by external factors including regional tensions and natural disasters and therefore to stay ahead of the

A modified Cobham RJ-85 jet aircraft with the capability of landing on unsealed runways

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BomBardier Specialized aircraft

WIDEST RANGE OF C U S TO M I Z E D S O L U T I O N S 6 P L AT F O R M FA M I L I E S | 1 4 D E R I VAT I V E S C4ISR

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PROFILE| BFM

pack we must provide a blend of essential services to businesses so that we have relevance as others in the aviation industry consolidate or merge – which is a trend currently.” One of Peter’s biggest achievements is the safeguards he has built into the business. “I focus heavily on long term goals and the alignment of our people to those goals. We have a lot of people in our organisation and operate in 10 different countries. So what is important when you have that span among that many nationalities is to bring people along with you on the journey to have them all working towards the same goal.” Peter says during its 25 years in operation there can be static inertia, but the best way to safeguard against becoming stale is to explain change why the company has to do things differently. Then it’s a matter of bringing people along with the vision. And that means building the right time, the consequence of which can be letting good people go. “Sometimes you have to let good people go. Some add value through one phase of the cycle, but don’t stick to the journey for a variety of reasons. Building a team with the right capabilities helps align positions and values, and allows us to project what it means to us to be a services company. “Being relentless in what you are trying to achieve is critically important,” Peter says. Along with being able to stay the course even during market turbulence or international security concerns, such as we are currently experiencing. In the end the trick to running a successful business in a fiercely competitive, capital-intensive industry is to not complicate leadership and management goals. Peter says there are five ways to achieve this: 1. Strong and compelling vision – what do you want to be. This has to be about more than just numbers. 2. Strategy – how are you going to deliver your vision? 3. Team and alignment. From senior people down, it is important to make sure that the company is

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disciplined, open, honest and fair. 4. Communicate. When you think you have done enough do it again and make communication a two way street. Do this with staff and clients. 5. Be a role model. Everyday you have to live your values, breathe them and communicate them. When you run out of passion for your values, that’s when it’s time to give it away. This year Peter travelled to 23 locations across seven countries to be with local staff and listen to them. He is still interested in what they have to say and how they can work together to make the company work better to make their lives easier. Communications and values, it would seem, go hand in hand and it is this commitment to the vision that will enable Peter to realise his vision of expanding the business further into its three territories and having a truly global company, in which its three regional operations all have aligned goals: three segments, four geographies, one

As the world’s third largest aircraft manufacturer, Bombardier provides military, government and security agencies around the world missionized solutions based on its 14 commercial and business platform derivatives. Bombardier Specialized Aircraft leverages its decades of experience to offer mission capabilities ideally suited to each customers’ unique requirements. In 2016, over 15 Bombardier Specialized Aircraft will be flying in Australia. Bombardier Challenger and Q Series aircraft have been in operations with the Australian Royal Air Force and the Australian Customs & Border Protection for over 10 years. The Australian Government’s Bombardier fleet is growing as Challenger aircraft will soon enter in service with the Maritime Safety Authority. Bombardier is committed to Australia in supporting the existing fleet and future requirements. - Stéphane Villeneuve, Vice President, Bombardier Specialized Aircraft.

organisation that can deploy its capabilities any where in the world. Finally, Peter’s vision is to be known by its customers and the industry for how Cobham Aviation goes about what they do in a trusting way that is founded by the utmost integrity. BFM

Rotary wing defence training

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BFM | ENTREPRENEUR

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ENTREPRENEUR| BFM

The Personal Journey of an Entrepreneur;

The Truth That Nobody Tells You

Industries are being disrupted at an exponential rate – it’s now a case of disrupt, or be disrupted writes Taryn Williams.

he Internet and digital technologies have changed everything. Before the Internet was a facilitator for businesses, now it’s a creator. More and more people are moving away from traditional ‘roles’ and ‘employees’ and are working freelance (freelancer.com is a great example of this). They’re taking control of industries, starting their own businesses and from this influx of self-made CEOs, society is much more open to the idea of the ‘entrepreneur.’ IT’S HARD WORK! The real truth is, it’s a tough slog. The hours are long, there are little if any holidays or breaks and it comes at great personal sacrifice. You don’t get to go to friend’s birthday, or have nights out on the town. Your company has to be 100% of your focus and you have to be prepared to accept the risks with the reward. “All progress depends on the unreasonable man.” SURROUND YOURSELF WITH THE BEST OF THE BEST From my personal experience, one of the best pieces of advice I can give to young entrepreneurs who are moving and growing past selfreliance is to start surrounding yourself with the people you want to become. One of the greatest perks of being an entrepreneur, and the most important thing to get right, is choosing the team

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you work with. Hire people that are smarter than you, that inspire you and whose company you enjoy because you are going to see a lot of them! FOSTER AND SUPPORT YOUR A-TEAM Once you have built your community, don’t forget to foster it. I spend a lot of time giving back, whether through charity work, mentoring others or speaking at schools/conferences. It’s important to build a great community around you, champion other peoples’ causes because it will inspire you to do better and, at the end of the day, be better. It will also build an ecosystem that supports the entrepreneurial ideas we want for the next generation. DON’T FORGET TO CELEBRATE THE SMALL WINS – THEY LEAD TO BIG WINS! Having covered the challenges, you now are privy to the glories. Being an entrepreneur means getting to celebrate the incremental victories and please, ensure that you do. The first run of business cards, the first sale, the first ‘thank you’ email from a client, celebrate these. Revel in these moments, and share the celebrations with your team, it gives you the motivation to keep going. NEVER STOP BEING CURIOUS You will constantly be learning, sometimes it’s natural, organic,

sometimes it’s learning through a baptism of fire. Often you will have to learn the hard way. But, know that every day you’re challenged, every day you get better, every day you grow and develop to become smarter, savvier and more successful. IT’S HARD – BUT IT’S WORTH IT Starting something on your own and seeing it grow will be the most rewarding thing you have ever done. This year I opened a second head office in Melbourne and before that, I had a number of flooring experiences with WINK Models. Seeing our first billboard as I drove over the ANZAC bridge, the physical product of the journey was an experience like no other. Hitting that first million, signing our 500th model, winning our biggest international contract, these are moments that I can’t explain the feeling to you if you’re not an entrepreneur. It’s worth all the late nights, and then some. So, here is the truth as nobody tells you … It is challenging, all consuming, exhilarating and addictive. It takes a certain type of person, and it takes no prisoners. But for entrepreneurs, there’s nothing else for us. It’s what we’re wired to do. BFM Taryn Williams is the Founder and Managing Director of WINK Models, the leading commercial modeling agency in Australia.

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BFM | PROFILE

CHIEF IN CHARGE The past 40 years have seen many technological revolutions. Each advance has demanded fresh content optimised for the new platform. Hamish Cameron OAM, CEO of Chief Entertainment, has led the way in creating that content. Story by Daniel G Taylor

hink of some of the advances we’ve seen in the past 40 years: Colour TV came to Australia in 1975. The same year saw the reintroduction of FM radio. America had FM radio from 1933, but when FM radio was first introduced in Australia in 1947, few people wanted it. In 1961, the government shut down FM radio to make space on the TV band. Mobile phones came to Australia in 1987, even though they didn’t catch on until the 1990s. Likewise, Australia connected to the Internet in 1989, but it took until the mid1990s to become popular. Then the iPhone went on sale on 11 July 2008. It embraced all those previous technologies and forever changed how we use them. Cameron has had to learn how to create content optimised for every one of these changes. He started his career as a videotape editor at Channel 9 and Channel 10 in the 1970s. But his first notable achievement was propelling Triple M out the starting gate. In 1980, the Australian government awarded licenses to companies to use the FM broadcasting spectrum. “Nowadays they auction spectrum, but in those days it was free. There were 13 applicants for the licenses available in Sydney,” Cameron says. Rod Muir championed the case for Triple M. “Rod had a thing that you needed to have: an absolute belief in yourself to attempt to do things.” It was Muir’s belief in himself that made him compete against 13 other applicants for a license. He won because he was tireless in his preparation. “Rod basically had the team ready to go so that when the gov-

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ernment said, ‘And the winner is Rod Muir,’ he already had the team, including myself, ready to go to air straight away… and we did.” One of their early successes was poaching popular presenter Doug Mulray from another station. Cameron says, Mulray was “an absolute radio genius. There’s no doubt about that. He just took the place by storm. He was funny, irreverent, and took Triple M from ratings of 3-4% and rocketed it to 20%.” The relationship between Cameron and Mulray remained strong through to the late 1990s. And led to them founding Chief Entertainment in 2000. By this time, Mulray wanted to move away from radio and find a new challenge. “What we thought we’d do,” says Cameron, “is broadcast the Doug Mulray Show on the Internet.” Instead of playing music or radio tracks, the new format lent itself to playing videos. Mulray became a VJ. It was a technological break-

through and a world-first. They delivered Internet Protocol TV (IPTV) programming on Telstra’s broadband platform. Since then, Chief has built on its successes. It provides a range of production services, including studio TV, outside broadcast, live streaming, digital media production, location filming, motion graphics, visual effects and satellite distribution. UPGRADING To help Chief succeed, Cameron returned to study when he was 40. At UTS, he gained his Bachelor of Laws in 2000, and then his Master of Laws in 2005. In an interview with the UTS Alumni magazine, Cameron said, “A good understanding of copyright and intellectual property law is so valuable in the current digital world. My UTS degrees have been of immense benefit in dealing with such issues as artist agreements and copyright issues.”

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PROFILE| BFM

Part of the reason he undertook study was to meet the demands of working, ultimately, for Telstra. Telstra fully owns Chief Entertainment. “I tried to bring the corporate and business disciplines that are necessary for a public company like Telstra.” Radio station ownership has changed since 1980. Then, individuals owned the stations. Now, corporations own them. With corporate ownership comes the mentality: performance at all costs. Cameron feels that mindset stifles the pioneering creativity. “I’d like to think that here at Chief, we still retain a working environment that provides the staff with a way to get the best out of them for their creative inspiration.” The Chief team uses that creativity to produce content including TV commercials, product hype reels, case studies, online video, and highlights programs. Their clients include Telstra, Kia, Origin Energy, the NRL, Racing Victoria, and the Seven Network. Also, it has had several entertainment hits. These include the Sydney Symphony Orchestra, the Tamworth Music Festival, Channel 7’s The Clubhouse, The Lowdown, and Live at the Basement. Some of the most popular content Chief creates is coverage of large sporting events. It has broadcast the AFL, NRL, V-8 Supercars, the Commonwealth Games, and the FIFA World Cup. With its sporting events, it provides video on demand content online. Chief also streams the games to the commercial radio networks and live streams other sporting events, like SANZAR Rugby and Netball, for international distribution. In May 2015, Chief Entertainment moved to a new facility. Their new home is a state of the art facility at Gore Hill, on Sydney’s lower north shore. The new facility aims to meet the demands of broadcast and digital media production. “There’s a whole lot here in terms of the Gore Hill facility,” says Cameron. “It’s a full-blown production house. From the genesis of an idea right through to completion and distribution.” Telstra’s production needs are

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ever-increasing. They produce content for broadcast, IPTV, online and mobile platforms, and for Telstra’s agency partners. The Gore Hill facility lets Chief produce everything it needs to please Telstra and their other partners. The content they create includes regular length TV programs, short-form content, such as promos, highlight reels and web content, outside broadcasting, editing, motion graphics, audio production, live TV, live streaming and a lot more. Another feature of the Gore Hill facility is that it connects Chief by DVN fibre to national and international broadcasters and major venues. This allows it to provide exceptional quality when broadcasting live sporting or cultural events. RECOGNITION OF ACHIEVEMENT In January 2014, the Commonwealth awarded Cameron an Order of Australia medal. The award recognises his longtime commitment to entertainment in Australia. This includes his work bringing performers to Australian forces deployed overseas. Those performances help maintain troop morale. Cameron knows he has achieved what he has with the support of his mentors and colleagues. He praises

Rod Muir for mentoring him during their time together at Triple M. “Rod engendered a huge spirit of people who can do. Rod always had an idea that you just had to do whatever you needed to do to do your job well.” Cameron has brought that spirit to Chief. His team at Chief includes in-house producers, directors, production managers, 3D graphics designers, and video editors. “I’m very flattered that you guys are interested in my career, but I’d like to balance that out with a bit of stuff for the studios. It’s good for the staff and good for the next adventure.” That next adventure will involve whatever revolutionary technology lurks around the corner. We do not know what that technology will be, but we do know that Cameron and Chief will create content optimised for the new platform. BFM

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CREATE . ENCODE . BROADCAST

Creative

Shoot

Post

Studio

Audio

Deliver

Chief’s new world class digital media and studio facility has been designed to provide seamless production of high quality sport, music, entertainment, corporate and branded content.

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SOFTWARE| BFM

Eight steps to a successful BI software implementation According to recent research from Gartner, the global business intelligence (BI) and analytics software market is projected to grow 6.9 per cent by the end of 2015. Australian organisations are expected to spend A$670.6 million on BI and analytics software this year, an increase of 12.1 per cent from last year writes Stefan Crisp.

hen it comes to implementing a BI strategy, choosing the right technology partner is an important first step. Ultimately, embedding a culture of business intelligence gathering, analysis and action in a workplace requires a transformation project. Which means it’s essential there’s adequate foresight, planning and engagement across the business during this process. So, here are eight tips to ensure your investment in business intelligence software is successful. Align your business priorities to your business intelligence priorities. It’s essential your BI systems support your overarching business strategy. The idea is to map your BI goals against your business goals. Let’s say one of your business goals is to grow revenue in the education sector by 10 per cent. How could you develop intelligence using your BI software to help you reach this goal? It’s also essential to recognise that business priorities are ever changing. This means there needs to be a system in place that ensures your BI priorities and processes are tweaked when commercial priorities shift. Collaboration is the key. Every area of the business needs to be involved in the implementation process to get the most out of your BI system – including all key stakeholders from business, IT to finance functions. When you’re planning the implementation make sure there’s a representative from each area present at key meetings, to get their buy-in and explore how BI could best support their work. It’s also important to identify any potential hurdles that may need to be overcome as the implementation progresses.

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Keep an eye on your outcome. The business’s decision to invest in BI software is initially made for a particular reason – perhaps it was to give sales people on the road the ability to access key data, such as the number and value of quotes or leads in the pipeline, as well as historic sales trend data on existing accounts. When you’re rolling out the software, never lose sight of the reasons. This should guide all your decisions in relation to the rollout. Review your skill sets. Some areas of the business will already have well-developed analytical capabilities. The finance function is a great example. But other areas of the enterprise might need help in how best to use analytics to improve the firm’s competitive position. If this is the case, you may need to invest in training to increase some team members’ analytic skills. Taking these steps delivers two benefits: you’re up-skilling staff, which leads to greater satisfaction levels, plus you’re also helping to grow productivity across the business. Review your legacy systems. The best BI implementations are driven from a holistic view of the enterprise’s IT assets. So before you start the rollout, take a look at the software and hardware that can be integrated into the overall BI architecture to help leverage its capabilities. This might include extending the existing supply chain management system, or warehousing software. Target the low hanging fruit. Any BI implementation is a journey and it’s a mistake to focus too much on the destination. This means it’s a valuable idea to go for a few quick wins early on, to gain acceptance of the new technology among staff. For instance, give the

managing director a dashboard of key metrics he or she can use every day to keep an eye on how the business is tracking. Or give the CFO access to accounts receivable, accounts payable, sales orders and general ledger information in an easy-to-see format. Once you’ve shown how much value the BI software can add to the key influencers within the business, you’ll more easily achieve widespread buy-in across the organisation. After that, it’s a process of creating a roadmap and systematically engaging each area of the business in the rollout. Find your sweet spots. Some pieces of information will be more important than others to the business. It’s your job to find out what these are and then ensure the BI system delivers this information effortlessly to those who need them most. Remember things change. As you undertake the rollout, it’s likely that the focus of the business will subtly shift. As this happens, so too should the focus of the BI implementation. The rollout has to be flexible enough to cope when the company buys a new business, or decides to enter or exit a market. With this in mind, it’s integral for businesses to find an IT partner that has the capability to easily scale up and down in line with the company’s changing needs. Remember, a successful BI implementation takes time, energy and patience, so be sure to celebrate key milestones as you hit them along the rollout path. Cultivate relationships so when you hit a stumbling block, you can talk through it. Above all, remember that if the business is to use this important investment fully, it will need to focus on people, processes and culture. BFM

BUSINESSFIRST MAGAZINE

BFM | PROPERTY

How to get

the deal done Whether you are buying or selling an investment property or your own home, everyone wants to secure the best deal in the most efficient way possible writes Zaki Ameer.

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PROPERTY| BFM

he Australian property market is a booming industry. Participating in this marketplace will warrant making some of the most important and significant purchase decisions in your lifetime. Negotiating the property market can be a difficult and daunting task for both inexperienced and seasoned property investors. Whether you’re selling an investment or your own home, naturally you will want to sell for the highest price possible. In order to do so it’s important to keep the following points in mind: 1. THE CONDITION OF THE PROPERTY It’s crucial to thoroughly inspect the condition of the property you’re intending to sell. You are essentially assessing whether it needs to be renovated. Unnecessary renovations will be a waste of time and money so only carry them out if they will be adding considerable value to your property. If in doubt, bring in an expert to value the property and heed their advice on what may need renovating. I would also advise against renovating in a volatile market, if the market is going down there is no point outlaying extra costs. 2. FURNISH THE PROPERTY By displaying the property as furnished this will enable prospective buyers to imagine themselves living in the house and leave a lasting impression, much more so than if the property was empty. It’s important to furnish the property with items that will appeal to potential buyers – the right furniture will create an inviting warmth within the space. Furnished properties will sell significantly faster than an unfurnished property and will save you paying extra interest and other potential expenses that keeping

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the property on the market may generate. Before furnishing the property you must make sure that the expenses you are outlaying will be covered in the expected sale of the property.

compare the prices of similar properties. When looking at the houses themselves, try to look for any defects or slight imperfections that you may be able to use to negotiate a lower price.

3. CHOOSE YOU REAL ESTATE AGENT WISELY Agents are a vital component of the selling process and can significantly affect the sale of the property. You are essentially hiring a stranger to look after an incredibly important job. Think of this task as an interview and before you select your agent, conduct as much research as possible into their past experience as a realtor and try to speak to a previous client. The agent should know the particular area and the type of buyers extremely well in order to get you the highest price possible.

2. EMPLOY A PROPERTY BUYER’S AGENT It will be in your best interest to hire a property buyer’s agent. Property buyer’s agents, also known as buyer’s advocates, are certified professionals that will investigate, evaluate and negotiate the purchase of the property on behalf of the buyer. In essence, they are doing most of the hard work for you. This will save you a large amount of time, money and stress than if you were to undertake this task on your own.

4. TO AUCTION OR NOT TO AUCTION? If you are selling at a time when the market is on the rise then having an auction is the best option. This will provide you with an opportunity to receive a higher price than expected. If you decide on an auction, you need to have the best auctioneer who understands the area where the property is located. This component is often overlooked. The best way to select the auctioneer is to see the potential candidates in action. This will enable you to notice their differences in style and methodology. As a buyer, you ultimately want to get the lowest price possible while ensuring you have the best deal. Using the skills listed below will give you a competitive advantage against the other people who are contending for the property. 1. DO YOUR RESEARCH Be sure to undertake thorough research of the chosen area and

3. GOING SOLO If you decide to go through this process without any outside help, such as a buyer’s agent, you need to be particularly confident when it comes to negotiation process. The more initial research you do into the facts and figures of the area and property types, the more confident you will be in negotiating the best price for yourself. 4. UNCONDITIONAL LOAN APPROVAL Once you find your property and you’ve decided that you’re committed, you need to be able to put a deposit down as soon as possible to show that you’re serious about the investment. In order to do this, you will need to get an unconditional loan approval, which means that that particular property will be mortgaged by the bank. You can then go back to the agent with your deposit right away in order to avoid any cooling off periods. The property will then officially be yours. BFM Zaki Ameer is the Founder of Dream Design Property (DDP)

BUSINESSFIRST MAGAZINE

BFM | PROFILE

SUCCESS SCAPE From the day it started Landscape Solutions has been a company focused on customer service. Business First speaks with founder Tim Buckle about his approach to the customer has led him to grow from a small one man entity into large company that specialises in development sites, civil work and sports fields. By Daniel G Taylor

n 1993, Tim Buckle started Landscape Solutions with a ute, a wheelbarrow and a vision to change the Commercial landscaping sector. It seems he was one of only a few who had entered the industry willing to do so. “One of the advantages of the trade industry is that there’s not a lot of people that deliver good customer service. We focused on the customer,” Buckle says. Buckle started Landscape Solutions with a business partner, but soon realised the partnership wasn’t viable. “Having the staff answer to one person really started allowing us to grow a lot faster.” With Landscape Solutions Buckle was able to capitalise on the gap created by the lack of service he felt was holding the industry back. “[The trades] take too long to get back to their customers. Or they treat the trades as most important. It’s always customer service that’s the important factor in any business.” Moreover, Landscape Solutions is not content with providing exceptional customer service. “We always look at ourselves and say, ‘What can we do better? Even though we’re doing well, what can we do better? What can we improve about our customer service? How

Kobelco Construction Machinery Australia and Sydney Dealer, Sydney Truck & Machinery Centre are valued suppliers to Landscape Solutions - supplying Kobelco Excavators and Fuso/Iveco trucks. Congratulations Tim and the team, we look forward to supporting you into the future. - Doug McQuinn (Kobelco) and Roy Papallo (Sydney Trucks and Machinery)

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can we improve our operation?’ You can never stop that. To remain successful you must always be searching for a better way.” Their first big commercial contract was with Rosecorp, for Bob and Margaret Rose. How it happened is interesting. “I actually went and looked at a tiny job for them, for their son, Stuart. I was one of the few landscapers that turned up. I might have been the only landscaper who turned up for it because it was right before the Olympics.” While everyone else was chasing big dollars in the leadup to the Sydney Olympics, Buckle impressed the Roses on a $1500 project. When the Roses started work on the Cape Cabarita development, they asked Landscape Solutions to handle it. That project was worth $1.1 million. “I’m still working for them today. We would have done, I don’t know, maybe $30 million-plus worth of landscaping with them now. They’re great clients who still support me and they supported me the whole way through.” A UNIQUE LEADERSHIP CHALLENGE For many companies, the leader faces a similar set of challenges. Increasing market share... innovation... bringing a vision into reality. But Buckle’s challenge is something completely different. “Landscaping is a very peopleintensive industry and finding people is our biggest logistical issue. I think the whole commercial landscape industry has that issue with the trades. We’ve had up to a hundred people on site at one time. Trying to get those people is difficult.” When you add a factor such as

working on projects for the army, the need for defence checks slows the process further. “Planning that far ahead is a skill that our project manager and foreman have,” Buckle says. Landscape Solutions is taking some steps to interest more people. “We’re really pushing hard to attract young people to the industry.” The company attends trade shows, visit TAFEs, and have an internal recruiter. Buckle says landscaping 20 years ago may not have been a proper trade or profession, but that has now changed. “It is common for a landscaping manager to earn well over hundred thousand dollars a year.” What has been behind this change is that the industry has become more professional. Instead of just tackling horticultural projects, you can think of landscapers as external builders. They build roads, pavements, walls, lighting, and so on. Because of this, Buckle says, they are attracting a broader range of people to the industry. First are the accepted landscaping trades: parks and gardens, horticulturists, and so on. Next, they are also employing civil engineers, carpenters, and concreters. With a company that has 300-plus staff, the challenge for Buckle is staying connected. “As your business grows, the staff feel isolated. It started off where the owner could talk to them all every day, and now you can’t talk to them all every day.” To combat this, Landscape Solutions has been producing newsletters for staff. Moreover, Buckle has been spending more

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PROFILE| BFM

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BUSINESSFIRST MAGAZINE

BFM | PROFILE

time talking to staff, recognising that they in a manner partners in the business and as important as actual partners such as Kobelco, who Landscape Solutions have a longstanding history with. GOALS FOR GROWTH This year, Landscape Solutions has turned over $85 million. Besides the 320 full-time employees, a normal day sees 400-450 people on site. This number includes subcontractors and casual staff. As for growth plans, Buckle believes there’s still potential in Sydney and Brisbane. Landscape Solutions has been in Melbourne for a couple of years. The company plans to expand its business there. And where do the next biggest capitals — Adelaide and Perth — fit into the picture? They are on the horizon as medium-term goals with a two to three-year time frame. Another area of growth Buckle plans to capitalise on is overseas

markets. In particular, he’s thinking of Singapore, China, and the Middle East. These countries express much interest in the project management of landscape works. Buckle thinks he can succeed in these countries because they have an abundance of labour, but a scarcity of skills. “I think Australian companies are well-respected over there. We’re certainly well-respected with our quality and our safety. I think Landscape Solution’s reputation in Australia is probably working in our favour.” On the path to achieving this growth, one area Buckle wants to focus on is training. Moving into overseas markets means taking quality staff away from your domestic business. Replacing those staff is difficult. To that end, Landscape Solutions encourages staff to undertake project management courses. Buckle also expects the fundamentals he has mastered will

carry him forward. Carry as little debt as possible. Work hard and focus on the customer. “It’s hard work the whole way. If you don’t want to improve, someone is going to overtake you and be better than you pretty quickly.” His work ethic is paying off. Recently, Buckle took a four-week holiday. While he was gone, his staff managed the business without him. As much as he focuses on his customers, he makes relationships with staff a priority. Some of them have been with him for as long as 20 years. “I have very few people who haven’t been with me for a long time, so I suppose I must be doing something right and looking after them and they look after me.” Moreover, this leads to his vision for Landscape Solutions. “I just want to continue growing a business that my staff are proud of; that people want to work for and they enjoy working for. That’s the key.” BFM

FEATURE| BF

Signing the dotted line – The evolution of the signature

The signature has for a long time been a staple of our identity. Used to prove who we are on numerous documents, each person with their own unique spin. However, that has come under threat in recent years as technology has almost completely replaced the written word. Does this mean we will forever lose something that was once so precious to us, an indicator of our unique identity?

he signature has always been of great historical importance, signifying “this man was here.” Whether it be John Hancock placing his ‘John Hancock’ on the declaration of independence or Banksy’s name inscribed on some graffiti on a wall in London, those signatures were of historical importance and uniquely identified that man. Signatures are so unique to the individual that they became sought after, the autograph signature of sports stars and celebrities are collectors’ items and are often used as proof that a die-hard fan met that celebrity – a treasured memory of the occasion. However, the signature is falling out of society. Mobile payments and chip and pin means there is no longer a need for the signature on the back of the credit card, the same chip system is making the passport signature increasingly less important. Letters now most commonly sent in email form, have no requirement for signature. However, there are signs that the signature may yet be saved. The e-signature is starting to gain momentum of use, and could increasingly become important in identifying legitimacy of documents by putting a person’s unique stamp on it – similar to the autograph signature has in the past. The Australian Parliament has recently bolstered the legitimacy of the e-signa-

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ture by suggesting signed e-petitions are now going to be accepted under strict conditions. The e-signature is especially going to be a huge boost for document heavy industries such as financial services or insurance brokers, who have wades of contracts to sign and deals to make, but can’t rely on technologies such as chip-and-pin. Whereas the increasingly digitisation of documents has presented an issue with authentication in the past for companies existing within these industries, this can now be solved by simply placing the e-signature on the document. This not only saves paper, cost and time for these companies, but the e-signature, when integrated with an encrypted file sharing solution, is now one of the most secure ways businesses can communicate with clients when handling sensitive materials. For businesses that frankly can’t do secure and compliant business without signatures, this is the future for them. We may no longer write our signature every day, and we may not use it as the main indicator of our identity and proof of who we are, but we do still sometimes need to sign on that dotted line – whether it be to fight for a cause we believe in or sign an essential document – for those occasions the signature must not be forgotten, but evolve into the digital space. BFM

BUSINESSFIRST MAGAZINE

BFM | SELF PUBLISHING

THE NEW COMPETITIVE EDGE FOR SMALL BUSINESS: SELF PUBLISH A BOOK AND USE IT AS A BUSINESS CARD It’s a competitive world: for every business owner, there are another 10, 20, 100 trying to win the same clients, but how do you stand out when every market feels saturated asks Michael Hanrahan.

I Michael Hanrahan

is CEO of Michael Hanrahan Publishing.

magine this: you’re at a networking or business function, meeting with a new potential client or partner. They have been given handfuls of business cards by likeminded people wanting their business, then you approach and hand them your book. Full of information they need. What’s more likely to catch their eye and less likely to land in the bin? Your book. But surely it’s a massive and expensive task to produce your own book? Not so. The traditional business of book publishing is dead. The digital age has shaken up the traditional world of book publishing and big brand,

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book retailing names. Now is the age of self-publishing, and never has this been a better or easier time to promote yourself and your business with a book. Writing a book as a business tool is a growing trend and gives an unparalleled advantage over competitors. This trend has been spurred on by two significant developments in book publishing. First, the rapid advances in the publishing industry have made self-publishing more accessible for small businesses. The key changes include e-books, retail sites such as Amazon, and more affordable high-quality printing. These technology-related changes

give independent publishers the ability to produce and distribute (to a worldwide audience if desired) high-quality books. In the past 10 years the quality of self-published books has increased dramatically, and publishing a book is fast becoming one of the most effective ways for small businesses to market themselves and assert their place in an overcrowded marketplace. The second development is the rise of the high-profile entrepreneurs, with Richard Branson being a prime example. Self-promotion (rather than just promoting a company) has become a powerful tool in modern business, aided by social

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SELF PUBLISHING| BFM

media and traditional media that love people stories. People such as Richard Branson, Steve Jobs, Dick Smith, Oprah Winfrey, Mark Zuckerberg and Janine Allis have become household names, and are often as well known as their companies, if not more. But you don’t need to be world famous or a household name to author a book on your expertise and use it to build a big profile within your potential customer base. Best-selling small business author and expert Andrew Griffiths, says his books have been the basis for building his business. “Over the past 15 years incredible opportunities have come my way as a direct result of being an author, both in Australia and internationally. They have been extraordinary; including the development of a highly profitable speaking career, working in various roles with hundreds of big name corporate companies within Australia and partnering with international

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heavyweights like CBS, Inc.com and Hewlett Packard on numerous projects. And all as a one-man band, business owner,” Griffiths said. In the last couple of years there has been a rapid rise in the number of authors deciding to go it alone – for a number of different reasons – rather than go with a traditional mainstream publisher, not the least of which is control over the process and reaping all the rewards, without having to give over a percentage of sales. Self-published author of The New CEO in You! and owner of Duet Consulting Russell Newman explains, “Since the publication of my book there has been a noticeable build up of business and opening up of contacts and opportunities that were previously not available. The book has enhanced my credibility with my existing clients as well as with prospective clients and is in fact my ideal calling card.” Self-publishing a book can bring myriad benefits to the business and the business owner. Sales and new clients are just the tip of the iceberg. Other benefits such as speaking engagements and being recognised as an industry expert can come from publishing a book. Cynthia Dearin, author of Camels, Sheikhs and Billionaires: Your Guide to Business Culture in the Middle East and North Africa and Managing Director of Dearin & Associates has experienced the benefits first-hand. “Since I published in February this year I have had four paid, industry speaking gigs, the Federal Trade Minister included me in a CEO delegation to the Middle East, we are being approached by larger firms and they have stopped asking me about price. I’ve even had the media search me out,” she said. Tyson Franklin, author and self-publisher of It’s No Secret… There’s Money in Podiatry and owner of Proarch podiatry, says the book changed his life. “I was relatively unknown within the profession, but this is no longer the case. And now I am being asked advice from businesses outside of podiatry.” Liz Crowe, author and self-publisher of The Little Book of Loss & Grief, says having a book has

“greatly increased my profile and marketability, allowing me greater depth across a range of industries which I have previously not been involved in.” Even best-selling authors who have had success with traditional publishing are looking at self-publishing their books in the future. Andrew Griffiths has 12 books published by Allen & Unwin and Simon & Schuster; now he is going down the self-publishing route and encouraging other entrepreneurs and business owners to do the same. “The reality is that subject matter experts and small business owners can write and self publish a book in a relatively short amount of time and for not a huge amount of money. It identifies them as an authority in their niche, and becomes an exceptional leveraging tool – like a business card on steroids. Being an author opens many doors,” said Griffiths. So what can you learn from people who have already had success with their self-publishing book? Liz Crowe says: “Have a professionally finished product, use professionals who understand books and just do it – it is tremendously exciting, terrifying and rewarding.” Being a published author will help you build your profile, promote your business and make you stand out from the crowd. It’s a turbocharged business card, a demonstration of your skill and experience, an ad, a marketing tool, a symbol of your commitment to seeing a project through, a key that will open many doors, a representation of the standards of your business. BFM

BUSINESSFIRST MAGAZINE

BFM | PROFILE

SUCCESS IS DRIVEN BY SIMPLICITY Recreo co-founder and managing director Matthew Crooks speaks with Business First about how the superannuation industry can be simplified. Story by Jonathan Jackson.

hen Matthew Crooks and his Recreo co-founder were mere young men, they had a vision to change the way superannuation and finance could be administered. The pair met while working together at a superannuation company with a strong focus on allocated pensions. “David was heading up the development of one of the first Windows-based superannuation platforms, and we got on pretty well.”

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The company was Oasis, a start-up investment platform and Matthew was groomed to head up the technology department. The business grew quickly. “It was a pretty amazing experience going from four or five staff when I arrived to upwards of 400 staff when I left. It’s quite a good growth story and ING Australia actually acquired that business.” Matthew worked on front-end management, web enabling and the overall investment platform. “We were one of the first

platforms in the country to have straight-through processing,” Matthew says. “We looked at it as an operation with efficiency gain rather than a real selling point for the business, but it turned out to be quite a selling point.” That’s because it had a direct relation to the way financial services could be utilised in a much more convenient fashion. “The way we delivered it was quite interesting. In the early days, we had a little feature called the limited advice-planning tool. That

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PROFILE| BFM

was a basic Excel spreadsheet that used to allow the advisor to go through a wizard-style process and output a statement of what was, back then, a limited advice plan. What we did was all of the development for a software package called Money One Office, which replaced that spreadsheet with a desktop-based version of a CRM and financial planning tool. We delivered the spreadsheet processing capability directly into the planning tool, so the advisor could actually sit with a client, outfit the client with technical advice, then hit ‘upload’ and it would establish a member account. “That was 2001 or 2002. We ended up getting that across our advice network and I think we had 1500 planners using it at the time across the country.” This technology was essentially a first move disruptor for the financial industry and foretold what was to come for Matthew and David. Matthew considers David a mentor as well as his business partner and the two have complementary skills. David took care of the operations side of Oasis and does so with Recreo, while Matthew’s passion and expertise lies in technology. When Oasis was acquired by ING, Matthew went to work for ING out of Hong Kong. He worked across Asia, looking at the various platform businesses that they were trying to establish. “That was quite interesting because they gave me the opportunity to look at all the various systems that were around the region. “David came up to visit me in Hong Kong and said, ‘Look. The self-managed super space is still gaining traction. It’s still hot. Let’s do something in that space’. I was having a great time. I was in my late 20s living in Hong Kong. I was a young guy with disposable income and you can live like a rock star up there. However, I really enjoyed working with David and I thought, ‘let’s give it a go’. I packed up and started to move back to Australia and in the meantime, get a lot of research on the Australian market and had a look at the offerings that were in the market. What I noticed is that there were gaps in Australia in terms of the real time capability of the plat-

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forms being used. The platforms were about end review compliance, end review tax, and accountants drove it more than planners. What we set out to do after we looked at all the offerings was we licensed many of the software packages in order to create our first administration business here in Australia. Then I convinced David that we should build a new platform with all the learnings that we had over the years and we should attack the market as a whole.” David was unsure about that direction, but he acquiesced and Recreo was formed as the company it is today. Matthew’s goal was to create a platform that could be used anywhere in the world and would cater for the tax legislative environment wherever it was done. Recreo covers superannuation, managed funds and retail funds. There are small and large companies that use the company’s product and they also cover and manage discretionary accounts. “There’s a hot topic at the moment around model portfolios and the ability to manage clients in bulk including non-super money as well.” However it is the technology that makes it all happen. It allows Recreo to simplify the investment administration process. “We do a lot of this through the

real time information provided on the website around where the placement of taxes and compliance breaches a client may have. We check every transaction for compliance breaches and the system allows us to do that in real time. Then there’s a feedback loop that goes back to the advisor or the trustee to say, ‘Look, you’ve withdrawn $100,000. You’ve got to explain why you did that’. We give them a list of options to try to do that ... We’re trying to do that in real time so that you’re not at the end of the year when it’s too late to actually address any of those issues. Typically, you would go to the accountant at the end of the year with a shoebox, and he’d tell you that you’ve done something wrong and it’s quite often too late to do anything about it.”

We are very pleased to support Recreo as our technology partner. We recognise that our fund needs to take advantage of the accounting, administration and communications edge the rapidly evolving digital world is providing. We need to adapt fast enough to the needs our customers have for greater transparency, control and features. To capture this opportunity, Mine has invested in and taken an equity stake in Recreo. This partnership will strengthen its performance, enable the emerging company to be bolder and provide the fund with its key offers of product flexibility, speed, administration efficiency and transparency. - Bruce Watson CEO, Mine Wealth + Wellbeing

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BFM | PROFILE

To create this technology, Matthew had to reskill. “I hadn’t developed software since about 2002. I moved into the management and the business side of things. When I came back to Australia and convinced David to build this capability, he wanted me to be the lead architect or developer. Which I was happy to do, but I had to go back and re-skill. So I spent a lot of time learning technology.” Recreo then built the platform based on their combined experiences and knowledge in the market. And of course the clients had a big say in functionality as well. “I don’t actually know what the competitor platforms do or look like now. I only know what our clients tell us are their wants and needs and we build to that. It’s been quite liberating in a way because we haven’t had to catch up to anyone. We’ve forged our own space and I think to this day, we’re still the only platform that can offer real time tax and compliance information as transactions occur

or even prior to them occurring.” This is why there is an abundance of interest from corporate clients. “I think that we give them a lot of confidence, because it’s not an end review process. It is real time or daily. As real time as we can get from the banks and so forth, but daily.” Recreo has 15 to 20 various client brands on its books and they work across four main segments of the market: SMSF administration, Master Fund Administration, Non-Super Wrap type products and, Direct Investments Marketplace.. “We’re sitting across all of those four segments,” Matthew says. “We have our own products in the market that are white-labelled for clients. We have business with them using our own technology. It’s a new way of looking at the addressable market.” It’s not only clients who are benefitting, partners are as well. As Recreo doesn’t sell software the engagement with partners is through ongoing relationships via

licence fees. And because of the strength of the software, the partners such as Mine Wealth + Wellbeing stick by them. Mine Wealth is a no-one size fits all super fund or financial advisory service, so Recreo’s model works perfectly for them. And their success is thus Recreo’s success. So what of the future? First and foremost, given the financial environment in Australia, Matthew believes that getting the business off the ground was one of his and David’s greatest achievements and getting the model of simplicity right from the start, set up the company’s future. Commercialising the technology was the first step. Rethinking and having the ability and the confidence to change the way things are done in the industry was the next. And now there is a focus on expansion. To expand, however, they will stick with their basic principles of clarity, simplicity and listening to clients. BFM

Investing in explorers We’re committed to empowering customers. They’re on a mission and so are we. The new wealth is about more than super. It’s about wealth and wellbeing, not one at the expense of the other. It’s about balancing getting ahead with getting a life. Achieving this takes getting the right partners on board. The ones who see things differently and are willing to challenge the status quo. That’s why we’ve partnered with Recreo – to help explorers mine their potential and grow through life.

Mine Wealth + Wellbeing | 13 MINE (13 64 63) | mine.com.au AUSCOAL Superannuation Pty Ltd ABN 70 003 566 989 AFSL 246864 Trustee for the Mine Wealth and Wellbeing Superannuation Fund ABN 16 457 520 308.

FINANCE| BFM

Tips when switching to new accountants

There may be times in your business where as a small business owner you have to look for a new accountant. This could be because you are setting up a new business in itself or in conjunction with your existing businesses, and would like advice on tax planning. It could also be because you have an existing accountant and would like to change, as the current level of service being provided is not up to standard writes John Corias.

F John Corias is managing director of Mas Accountants

rom the perspective of existing business owners, changing your accountant may seem like a challenging process at first, especially if you have been with your current accountant for a long period of time and have built a personal relationship, but are looking for a change nonetheless. Today we’ll look at a few tips that can help you with this decision and ease you into the changeover process: • Communicate: Contact your current accountant to let them know that you will be moving on. Make sure that all affairs such as BASs and tax returns are completed, or make it clear to the accountant that any outstanding works will be performed by the new accountant. This way, you will not be presented with a bill upon your leaving and have a nasty surprise that could potentially break down the relationship with your current accountant. • Do the research: Either through referrals from your contacts, internet searches or advertising, before making the decision on your new accountant make

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sure you have done sufficient research to know that the new accountant is the right choice for you. You can arrange to meet with them for an initial sitting to gain an idea of what services the accountant provides and which will be of use to you. Be careful not to overanalyse, as this may clog your mind with unnecessary data and you may end up on the lookout for a while. • Planning: Before meeting with a potential new accountant, list your objectives and reasons for looking for a new accountant. It is possible that you may set up meetings and find out that the accountant is not capable of providing the exact services you require. Plan out the meeting agenda so that you can easily explain to your accountant what is required during the first collaboration. • Documentation: Take as much documentation as possible relating to your accounts, so your potential new accountant can see what work will be involved. It is possible that the accounts are in

a mess and require fixing up, so taking your P&L, balance sheet, trial balances etc., on a USB can be quite helpful to the new accountant and give you an idea of the time and cost involved in fixing up the accounts. • Follow up: Once you have decided on your new accountant and are satisfied with the level of service and costs, make sure that they are a registered tax agent and are not prohibited by law to provide the promised services. This is because it is actually illegal to provide income tax services and subsequently charge for them if the accountant is not a registered tax agent with a valid agent number. Once you have decided to make the switch, it is imperative that the new accountant you find can communicate clearly, is the right choice for you and has set out a clear plan of action to make sure that what you require is what you are getting. We hope that these tips will help you make the right decision and save you the headache that comes with making the wrong choice. BFM

BUSINESSFIRST MAGAZINE

BFM | PROFILE

Taking a smart line Making the decision to run your own business should never be taken lightly, but with the support of an industry leading franchise model where empowering franchisees to succeed is paramount, the decision is made easier. Business First speaks with Shannon Ingram and Luke Camilleri about their experiences as Smartline franchisees.

stablished in 1999, Smartline Mortgage Advisers has the simple goal of finding the best possible mortgage solutions for its clients. To achieve this it has developed a franchise model based on a collaborative team approach supported by market leading specialist systems, training, accreditation, marketing,

technology and ongoing business support. It was recently recognised as Australia’s top franchise for the seventh consecutive year by Topfranchise.com.au, ranking ahead of some of Australia’s best known franchise companies. Shannon Ingram joined Smartline five years ago following a career in retail banking which had provided him with a deep knowledge of consumer banking and mortgage products. He had encountered Smartline in his role as branch manager and had found that Smartline’s clients always seemed better informed and more knowledgeable than others. He saw joining Smartline as a way to merge his skills with the flexibility and control of running his own business under a franchise model. “The dollars were also much better and trying to solve the problems that crop up is also a challenge that I thrive on,” said Shannon. Luke Camilleri began his career installing medical imaging equipment and eventually moved into an Australasian sales management role. It was at this time he started buying property using a Smartline broker and became attracted to the industry. He had known his Smartline adviser for some time

and spent time working with her on weekends to get a feel for the business. He found the social side and dealing with people particularly appealing. Whilst they are from different professional backgrounds, both Shannon and Luke were attracted to Smartline’s approach to business and both credit their success with the Smartline business model and the support they receive. The business model is based on a strong team culture with franchisees actively encouraged to share information and best practices. It places a high value on quality and being family friendly. “Apart from the high standards and ethics, Smartline also seemed very family friendly and inclusive which was a very different approach to working in a big bank,” Shannon says. “Little things like spouses being invited to our annual conferences were important to me.” Luke echoes this quality and family-friendly sentiment. “Smartline is a great aggregator and group to be a part of. They have supported and encouraged me from the beginning and they encourage franchisees to speak to other business owners who are happy to offer advice. After meeting people from group office, I was pretty

“I see myself as 100% a business owner. From a franchise perspective I feel I have full control over my business and all the support a franchise model can bring”. – Shannon Ingram

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PROFILE| BFM

“I run my own race and work as hard as I want to work, while having someone monitor how I am going and offering support”. – Luke Camilleri

much sold. The support has been second to none and they honestly care for you from day one,” he said. To ensure quality, Smartline provides its franchisees with comprehensive training, industry accreditation, ongoing coaching and business support. “Training is regular and top notch” says Shannon. “Since I’ve joined Smartline, I’ve seen the business constantly evolve its systems, processes and support. They’ve also improved support for new franchisees with dedicated managers to help you come on board and assist in what needs to happen with regards to regulatory requirements and bank accreditations. Compliance is quite a strong focus in our industry and Smartline also assists in this area with regular compliance updates and administration of credit licences.” Smartline also provides franchisees with access to industry best systems, leading lenders as well marketing, client care and technology resources to assist franchisees generate new business. Says Luke, “We have access to marketing and IT people, which adds value to my business and saves time if issues arise.” The business model supports franchisees when there are market downturns and regulatory changes. Shannon remarked, “Smartline is quite good in that we aren’t territory bound and I

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have customers in most states, so I have exposure to different markets at the same time. The other point is that if properties aren’t selling there is still a market for refinances, car leases and so on.” He added that the residual income from trails was also important “Having a trail income is essential. It helps smooth out income peaks and troughs and builds up over time as you settle more loans.” Luke also says he has the best of both worlds. “I run my own race and work as hard as I want to work, while having someone monitor how I am going and offering support. Sometimes you need help seeing the light at the end of the tunnel in the difficult times and Smartline is there to do that.” Smartline has established a solid reputation, through building excellent relationships with clients, lenders, business partners and the community. Its strategic business model is specifically focused on supporting the efforts of its franchisees. The company also constantly improves its systems, processes and support capabilities to make life easier for franchisees.

SMARTLINE AT A GLANCE • Over 250,000 Australians have arranged mortgages with Smartline. • 300+ expert advisers around the country. • More than $5 billion in loans settled each year. • 85% of business from client referrals. • An average client service rating is 9.8 out of 10. • Recognised with multiple national awards including Australia’s top franchise for seven years in a row (topfranchise.com.au)

With that sort of infrastructure in place, it’s easy to understand why anyone from any background can have an impact in the industry. There is no doubt that, with Smartline, Shannon and Luke are ticking all of their business boxes. For further information about a Smartline franchise contact Matt Fitzpatrick, National Recruitment Manager, Smartline on 02 9855 4224. BFM

BUSINESSFIRST MAGAZINE

BFM | DESTINATION

Five Reasons London should be top of your bucket list The Head Concierge at Corus Hotel Hyde Park tells us why London should be top of your list if you’re planning a holiday, and shares his tips for how to make the most of the city.

London really is the perfect place to visit for a city break. It’s not so big as to be completely overwhelming for a first time visit, yet there is so much going on you would never run out of things to do even on your 100th visit. The city is perfect for families, romantic breaks, business trips, cultural pilgrimages, or for those simply looking to indulge in London’s unrivalled food, drink and nightlife scene.

THE GREEN SPACES The parks are perhaps one of the city’s best loved spaces by Londoners themselves. Venture into Richmond Park for a taste of the English countryside, or Hampstead Heath with its public swimming lake and amazing views. We are lucky enough to be situated just across the road from Hyde Park, which is the largest of the royal parks in London, and home to a number of famous landmarks including the Serpentine Lake, Speakers Corner and the Diana Princess of Wales Memorial Fountain. Hyde Park also offers various recreational activities including open water swimming, boating, cycling, tennis and horse riding, plus hosting events ranging from Gay Pride, to rock concerts and Proms in the Park. Right: Serpentine Lake, Hyde Park

SHOPPING Shopping in London is like nowhere else in the world, from the iconic shopping streets of Oxford Circus and Bond Street, to the plush boutiques of Knightsbridge and world-famous department stores Harrods and Selfridges. If we have guests who have already experienced all of that, I usually recommend them to visit smaller markets like Maltby Street Market or Broadway Market for a more authentic London experience.

Left: Harrods is an upmarket department store located on Brompton Road in Knightsbridge, in the Royal Borough of Kensington and Chelsea, London.

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DESTINATION| BFM

FOOD GLORIOUS FOOD London is home to a dizzying array of amazing restaurants, from Michelin star meccas to tiny artisan coffee shops producing life-changing cakes. A good way to experience more than just one of them at a time is to go to one of the city’s now iconic street food markets. The hip Street Feast is located in Lewisham, Dalston, and Shoreditch, or Kerb in Kings Cross is very good with hundreds of tasty food stalls offering everything from Vietnamese buns to pulled pork and BBQ ribs.

ENTERTAINMENT If New York is the city that never sleeps, then London can’t be far behind! There is always so much going on. In August the Southbank centre hosted London’s annual festival of love – this year’s event was inspired by the late Nelson Mandela. Or if sightseeing is more your bag, the Houses of Parliament is commemorating 800 years since the signing of magna carter in 1215 – so now is the perfect time to book an audio or guided tour with Afternoon Tea. For art lovers, The National Portrait gallery is currently home to an extraordinary Audrey Hepburn exhibition, celebrating one of Britain’s most iconic film stars.

THE WEIRD AND WONDERFUL Forget Scandi cool or Parisian chic. Visiting London is all about experiencing the wonderfully bizarre eccentricity of modern Britain. Pay a visit to Camden Lock to see punks, live music and everything in-between. East London for themed cafes – cat cafe, owl cafe cereal cafe – you name it we’ve got it. Get a wet shave, posh Afternoon Tea, or your shoes shined in Mayfair, or simply go and enjoy a pint of beer in a good old English pub – anywhere in the city.

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Above: The lively Camden Lock

Standing proudly at No.1 Lancaster Gate, Corus Hotel Hyde Park offers unrivalled quality service and value-for-money in a prime central London location. Overlooking the beautiful Hyde Park, the largest of the Royal Parks in London, the grand white 200 year old listed Georgian building is perfectly situated for guests looking to explore London. The 4-star hideaway is close to everything that the West End of London has to offer, from shopping in Oxford Street, Bond Street and Knightsbridge, to museums and art galleries in South Kensington and world famous visitor destinations such as Buckingham Palace. It is also a short walk from Kensington Palace where the royals, Kate and William reside with their family. www.corushotels.com/london

BUSINESSFIRST MAGAZINE

BFM | FAST LANE

That new car experience We’ve all heard the name Elon Musk by now. He’s the ingenious founder of Telsa who is revolutionising luxury car travel.

he new Tesla Model S is a combination of highlife driving and new age thinking. Dual Motor Model S is a categorical improvement on conventional all-wheel drive systems. With two motors, one in the front and one in the rear, Model S digitally and independently controls torque to the front and rear wheels. The result is unparalleled traction control in all conditions. Conventional all-wheel drive cars employ complex mechanical linkages to distribute power from a single engine to all four wheels. This sacrifices efficiency in favour of all weather traction. In contrast, each Model S motor is lighter, smaller and more efficient than its rear wheel drive counterpart, providing both improved range and faster acceleration. All-wheel drive is available as an option on Model S 70 and Model S 85. Model S Performance

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comes standard with All-Wheel Drive Dual Motor, pairing the high performance rear motor with a high efficiency front motor to achieve supercar acceleration, from zero to 100 km per hour in 3.0 seconds. Tesla’s design and engineering teams have gone to extraordinary lengths to ensure that air flows

smoothly above, around and below Model S to reduce drag, which in turn maximises battery range. The smart air suspension lowers the car’s height at highway speeds to reduce its front area. Electronically controlled vents stay closed until sensors detect that cooling is necessary. The front bumper routes

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FAST LANE| BFM

AUTOPILOT Autopilot combines a forward looking camera, radar, and 360 degree sonar sensors with real time traffic updates to automatically drive Model S on the open road and in dense stop and go traffic. Changing lanes becomes as simple as a tap of the turn signal. When you arrive at your destination, Model S will both detect a parking spot and automatically park

itself. Standard equipment safety features are constantly monitoring stop signs, traffic signals and pedestrians, as well as for unintentional lane changes. Autopilot features are progressively enabled over time with software updates. The current software version is 6.2, adding automatic emergency braking and blind spot warning.

a charging connector and the hidden charge port automatically opens. The charging connector cannot be removed until Model S is unlocked.

your destination, favourite song or a new restaurant.

SAFETY Model S is designed from the ground up to be one of the safest cars on the road, as proven by a maximum-possible 5-star safety rating from the Australasian New Car Assessment Programme (ANCAP). Much of its safety is owed to the unique electric drivetrain that sits beneath the car’s aluminum occupant cell in its own sub-frame. This unique positioning both lowers the car’s centre of gravity, which improves handling and minimises rollover risk, and replaces the heavy engine block with impact absorbing boron steel rails. Side impacts are met by aluminum pillars reinforced with steel rails to reduce intrusion, protecting occupants and the battery pack while improving roof stiffness. In the event of an accident, airbags protect front and rear occupants, and the battery system automatically disconnects the main power source. Should the worst happen, there is no safer car to be in than Model S. HIDDEN IN PLAIN SIGHT Scan the streamlined body panels and you’ll discover that Model S lacks a fuel door. Approach the passenger’s side taillight with

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European Model Shown

air uninterrupted beneath the battery’s flat skidplate and past the rear diffuser. The result is a sevenseat sedan with the stance of a coupe and supercar aerodynamics.

BUILT AROUND THE DRIVER Model S is a driver’s car. The cabin combines meticulous noise engineering with Tesla’s uniquely quiet powertrain to obtain the sound dynamics of a recording studio. The gem of the interior is the 17 inch touchscreen, which is angled toward the driver and includes both day and night modes for better visibility without distraction. It puts rich content at your fingertips and provides mobile connectivity so you can easily find

TOUCHSCREEN The Model S 17 inch touchscreen controls most of the car’s functions. Opening the all glass panoramic roof, customising the automatic climate control, and changing the radio station all happen with a swipe or a touch. The touchscreen, digital instrument cluster, and steering wheel controls seamlessly integrate media, navigation, communications, cabin controls and vehicle data. With the move towards more efficient energy usage, Tesla is in the box in the luxury car market. BFM

BUSINESSFIRST MAGAZINE

BFM | LEADER’S BOOKSHELF

The Leader’s Bookshelf Reviews by Daniel G. Taylor

Melbourne-based copywriter: danielgtaylor@me.com

Your Hidden Riches: Unleashing the Power of Ritual to Create a Life of Meaning and Purpose. By Janet Bray Attwood and Chris Attwood, with Sylva Dvorak, PH.D

Enriched: Re-Defining Wealth. By John Sikkema. Major Street Publishing, 2012.

Business Adventures: Twelve Classic Tales from the World of Wall Street. By John Brooks John Murray Learning, 2014.

Harmony Books, 2014. Why do rituals have such a lifeenhancing effect? The Attwoods say the purpose of rituals is to become more conscious and intentional. To stop going through life on auto-pilot. The first part of the book asks you to define your ideal life. In the second part, you learn rituals to create your ideal life. The final part of the book asks, What impact will you have when you live your ideal life? When you take action on ideas from the Attwoods, life becomes an adventure. After I had read their first book, The Passion Test, I created a list of my top five passions. When my grandmother needed me to care for her, I had the freedom to put that list aside and trust in what was unfolding. During this year, I’ve also discovered the power of rituals. I’ve adopted the morning Hour of Power self-care ritual from Tony Robbins. The more I do it, the more energy I have. Three years ago, I met my soulmate. Our relationship remains strong because we embrace rituals. Daily gratitude. Weekly Date Nights. Random letters of appreciation. If you want to learn to access the power of meaningful rituals in your life, this book will show you how.

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Why do you work so hard to become wealthy? You may answer: “To have more money.” I encourage you to think a little deeper. What do you use that money for? What do you value most? Author John Sikkema was a successful CEO. He’d accomplished what he wanted to achieve. But he was paying a price for his success that wasn’t worth it. His wife wanted to leave him. He had no energy for what mattered most. He asked himself, what lies beyond a successful career? He saw a pattern among successful people. During the first half of their career, they focused on making money. During the second half of their career, they gave it away. Enriched helps you define what you would devote your money and energy to so that you gain significance. If leaders focused on achieving significance, they could solve the world’s challenges. Leaders must learn to judge themselves on their character, not just their competence. Significance becomes the scorecard, not net worth. You may be at that point in your career where you’re asking, “Does anything I’ve done count?” If you are, then Enriched shows you what to do next.

Bill Gates loves this book. He says it’s “The best business book I’ve ever read.” Warren Buffett also recommends it. With fans like these, smart business leaders will want to learn why they should read this book. Business Adventures tells twelve stories of public companies from the 1950s. From these stories, a leader can get ideas for handling their unique challenges: • Ford’s spectacular failure with the Edsel shows you how to deal with a product that flops. • The liquidation of Ira Haupt & Co. shows how to handle serious highstakes negotiations. • The price-fixing practices of GE show you why you need to ensure your communication is clear. This book stands out because the author, John Brooks, is a journalist, not a self-help guru. As such, he uncovers all you need to understand what happened and why. He expects you to do some work and form your own conclusions. The challenges he describes are still faced by CEOs today. He may not prescribe solutions, but you may just gain insight into how to tackle your own challenges. If you’re looking for a set of steps to follow, this book isn’t for you. But if you want to get some fresh ideas and think for yourself, read Business Adventures.

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Get the tools to build bigger.

TAX| BF

Grow your business by 400%* with Australia’s largest franchised home builder. Do you know a builder wanting to take their business to the next level? G.J. Gardner Homes is looking for ambitious, business-minded builders who want to grow their revenue, increase their profits and become the largest and most highly regarded builder in their community.

Less sweat, more rewards - with business and marketing tools, systems & support. Our integrated sales and construction software, systems and marketing support will empower you to build your business and give you more time to enjoy the rewards of your hard work. You can also rest assure knowing that when you’re ready to retire, a G.J. Gardner Homes franchise is a proven asset that you can sell. * Based on the average of Australian Franchisees who were previously operating residential construction businesses. Annual revenue compared from the final financial year before joining G.J. Gardner Homes to their 3rd Financial year with G.J. Gardner Homes.

Welcome home.

Call 132 789 or visit gjgardner.com.au

If you’d like to join Australia’s Number 1 franchised home builder visit gjgardner.com.au/franchise

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