S E PT E M B E R 20 1 7 BUSINESSPULSE
PM UNDER PRESSURE
WA READY TO SOAR
STADIUM FEVER JOIN IN, SAYS VENUE MD
MEET THE THINKERS QUICKLY ADAPTING TO AN EVER-CHANGING WORLD Print Post Approved No. 100004175 ISSN 1328-2689
Now supporting more than 9000 Members SEP T EMBER 2 017 BUSIN ESS PU L SE 1
HELLO TO SOME OF CCI’S NEWEST MEMBERS
Loretta Zanella People and Culture Liaison
Paul Litwin Director
Nola Pearce Director
Empowering patients through the delivery of chemotherapy, immunotherapies and other interventions by highly skilled nurses in the patient’s home
Innovation Institute provides WA schools, both primary and secondary, innovation and entrepreneurship skills pathways to prepare them for the future workforce.
TraumaSim supports medical and emergency training by providing realistic trauma simulation, medical training aids, moulage workshops and supplies.
T (08) 9328 3123
T 0419 952 588
T 1300 411 080
Veritas Stephen Inouye Managing Director Veritas is a forward-thinking innovations company which uses technology and engineering to design digital experiences that simplify complex, and usually paper-based, processes. T 1300 VERITAS E firstname.lastname@example.org W www.veritasgroup.com.au
2 B US I NE S S P U L S E S E PTEM BER 20 1 7
WE BELIEVE THAT SMALL BUSINESS IS THE ENGINE ROOM OF THE ECONOMY AND WE WANT TO SUPPORT THOSE ORGANISATIONS WHO CAN HELP US TO ACHIEVE GREATER OUTCOMES
WELCOME A NOTE FROM THE EDITOR ROBYN MOLLOY
Business Pulse Editor
his month’s Business Pulse delves into “The Skill Set” — what skills the workforce will need for the future, and the importance of training to get people there. One company at the forefront of the training for the future is Sentient, which offers virtual reality training to mining giants such as Rio Tinto and Woodside and is featured in our cover story. Find out how this technology is increasing safety and efficiency for business. We also look at how industry and education are working together on STEM-inspired programs at Scitech; as well as how mining companies are ramping up their training numbers for the next phase of Pilbara iron ore development. On the sub theme of tourism, this month’s Business Pulse also looks at the bright future for WA and the positive impact direct flights from London and the opening of Perth Stadium with have on the WA economy. Guest columnists make for a diverse line-up this month, including Perth Stadium CEO Mike McKenna, Curtin Vice Chancellor Professor Deborah Terry, Federal Education and Training Minister Simon Birmingham and State Tourism and Small Business Minister Paul Papalia. Next month we’ll look into safety and security issues faced by WA businesses in our “Under Threat” themed edition. Email email@example.com with your ideas. ¢
IN THIS EDITION
3 4 5 6 8 11 12 14 16 19 20 22 24 26 31 32 33 34 38 39 40
Message from the CEO Message from the Chief Economist Both Barrels – Joe Doleschal-Ridnell CCI@work In brief Looming GST bloodbath SKILLS FOR THE FUTURE The New Reality Scitech’s beautiful minds Message from Despatch Box – Simon Birmingham PLC’s beacon shines bright Training bonanza Kingdom here we come Cultural kick-off Cyber crime on the rise Student forum ahead of the curve Bringing down the Curtin on self-interest Q&A Research Winners and Grinners Five Published monthly by Chamber of Commerce and Industry of Western Australia (Inc) 180 Hay Street, East Perth WA 6004 T (08) 9365 7555 F (08) 9365 7550 E firstname.lastname@example.org www.cciwa.com President Agu Kantsler
Chief Executive Officer Deidre Willmott
Editor Robyn Molloy (08) 9365 7628
Production Editor Tony Barrass (08) 9365 7627
Graphic Designer Katie Addison (08) 9365 7518
Advertising and Subscription Paula Connell (08) 9365 7544 email@example.com
Disclaimer: This information is current at 1 September 2017. CCI has taken all reasonable care in preparing this information, however, it is provided as a guide only. You should seek specific advice from a CCI adviser before acting. CCI does not accept liability for any claim which may arise from any person acting or refraining from acting on this information. Reproduction of any CCI material is not permitted without written authorisation from the Director of Advocacy. © Copyright CCI. All rights reserved.
SEP T EMBER 2 017 BUSIN ESS PU L SE 1
Your business is small. That doesnâ€™t mean your super has to be the same. If you run a small business, are self-employed or even partially self-employed, WA Super can help with making the most of your tax-deductible contributions, as well as advise your business and your employees on issues related to superannuation and insurance. And the best part? Because we have no shareholders, you can rely on us to always be working with your best interests at heart. Weâ€™re just happy to help. Simple as that. With $2.5bn under management, 4,000 registered employers and 40,000 members, WA Super has just been named Best Capital Stable Fund at the 2016 Financial Review Smart Investor Blue Ribbon Awards. 6 201
For more information call Murray Aldridge on 0434 307 125 or 1300 99 85 42, via email firstname.lastname@example.org or have a look at our website wasuper.com.au
You should obtain a Product Disclosure Statement relating to the product at www.wasuper.com.au and consider the statement before making any decision about whether to acquire the product. WA Local Government Superannuation Plan Pty Ltd ABN 64 066 797 162, AFSL 269006, as Trustee for WA Local Government Superannuation Plan ABN 18 159 499 614.
2 B US I NE S S P U L S E S E PTEM BER 20 1 7
WE’LL KEEP FIGHTING FOR A BETTER WA DEAL A MESSAGE FROM THE CHIEF EXECUTIVE OFFICER
t a time when WA is burdened with unprecedented levels of state debt, the business community is watching with interest to see how the new McGowan Government will approach its first major economic blueprint. With only days to go before Premier Mark McGowan and Treasurer Ben Wyatt hand down their much-anticipated first budget, CCI has maintained its warning that any new or increased taxes, fees and charges will result in job losses.
believe more needs to be done to rein in spending. We have also recommended that payroll tax exemptions for trainees and apprentices be maintained. The exemption currently applies to all apprentices and trainees, and as CCI Members consistently tell us, when employer payrolls start heading towards the $850,000 threshold when payroll tax kicks in, it can mean the difference between hiring new staff or avoiding the 5.5 per cent tax. The Government has indicated its strong commitment to a
EMPLOYERS WHO HIRE THROUGH ASA RECEIVE A $4000 INCENTIVE FOR DOING SO FROM THE FEDERAL GOVERNMENT Our pre-budget submission urges the Government to cut spending. We acknowledge the McGowan Government’s efforts to achieve savings by streamlining government departments, committing to a strict wages policy and taking steps towards reducing electricity subsidies as interim cost-saving measures, but
plan for jobs and maintaining this measure in the budget will go a long way to supporting employers. We have an ongoing commitment to supporting employers find and train the right people for their businesses and, in fact, CCI distributed $17 million in incentives to WA employers for their trainees via Apprenticeship
Support Australia (ASA) in the last financial year. That’s 17 million reasons why apprenticeship and traineeships should be top of mind for businesses, as they are at CCI, where employers who hire through ASA receive a $4000 incentive for doing so from the Federal Government. CCI, via ASA, has been running a campaign this year called “WA Working Again”, which has been striving to drive up the state’s numbers of apprentices and trainees. Between January and June more than 18,000 businesses, with the majority being in regional WA, received a series of post cards promoting the campaign, which asked employers to get involved and put on an apprentice or trainee. This directly resulted in 177 employers taking on 708 apprentices and trainees. This is at a time when national figures show that apprenticeship and traineeship numbers have been falling since 2012. CCI has always had a strong focus on training and ASA has been an important part of us for 19 years.
A poll of West Australians recently commissioned by CCI showed that 80 per cent ranked GST as being an issue for them leading into the next election, with more than half of the 800 respondents indicating a fairer share of GST was one of the most important issues. This comes as no surprise. CCI has been on the front foot since Members indicated that reform was a priority after the Commonwealth Grants Commission announced in March that WA’s GST share would only be 34 cents in the dollar, well below the forecast 38 cents.
Tourism As this month’s Business Pulse shows, WA is on the cusp of a tourism boom with two landmark items coming into play next year — the opening of the amazing Perth Stadium and the introduction of direct flights to London. Both will prove important economic drivers at this important time in our history. ¢
Deidre Willmott Chief Executive Officer
GST GST has also been front and centre of CCI’s priorities, as you, our Members, have urged us to advocate for a new distribution of GST pie that encourages economic growth across the whole country.
TO GET INVOLVED: cciwa.com @CCI_CEO
SEPT EMBER 2 017 BUSIN E SS PU L SE 3
ROBOTS ON THE RISE, BUT DON’T DESPAIR CCI CHIEF ECONOMIST RICK NEWNHAM
obots are coming for our jobs, and it’s a good thing. Automation will make our jobs safer, more satisfying and more valuable. That’s the key finding of a recent report from AlphaBeta, commissioned by Google, to examine the economic and social impact of automation. I share this outlook for automation. It’s not a bad thing. Technology in the workplace has benefited us all greatly over the last century and the rate of technological change and resulting technological unemployment hasn’t changed recently.
same time, it allows production to keep up with population growth, so more people have access to better transportation options. An overwhelmingly positive outcome for society. When we think about the response to technological change in the workplace two binary paths are often proposed — resist or embrace. Japan is a clear example of what can be achieved when change is embraced. Japan, alongside South Korea, are the most advanced manufacturing leaders of the world. This didn’t happen overnight or by accident. Both governments set strong policy agendas to embrace
BY 2030, IT IS EXPECTED THAT THE AVERAGE WORKER WILL EXPERIENCE 17 DIFFERENT JOBS OVER OUR CAREERS What has changed are the industries that are impacted. Traditionally, technology has changed or removed jobs in farming and manufacturing. That’s where we’ve become accustomed to seeing where technology has improved productivity. No one would expect a farmer to work without a tractor, and, in its place employ several farmhands to do the heavy lifting. Likewise, manufacturing has changed dramatically thanks to automation and robotics. This allows us to buy more advanced vehicles at a lower price. At the
the introduction of robots into the workplace, particularly in manufacturing, and set out to solidify their place as world leaders. Embracing technological change and automation is not without its job losses. This has always been the case. We need fewer bank tellers thanks to ATMs, less check-in staff at the airport thanks to self-service check-ins and less travel agents thanks to online booking services. If we travelled back to 1970 and described everything that would be automated by now, alarm
4 B US I NE S S P U L S E S E PTEM BER 20 1 7
bells would ring for the expected widespread unemployment. Yet we have a relatively low unemployment rate in Australia by historical standards, despite all these advancements in technology. So, will there be any jobs left for humans in robotic world? One famous economist Milton Friedman once said, “Human wants and needs are infinite, and so there will always be new industries, there will always be new professions”. This is still true today — many of our Members have provided us with examples of how their workplaces are safer and more efficient for the changes. The challenge is not whether there will be any jobs left, but about ensuring a smooth transition for those who will have much of their role automated and need to move into these new industries. Perhaps the greater challenge will be preparing high school students and university graduates for roles that might not exist at the time they are studying, given how rapid technology is changing.
By 2030 it is expected that the average worker will experience 17 different jobs over our careers as automation, globalisation and flexibility change the way we do things. A new mentoring program launched by Science Minister David Kelly aims to bridge the cultural gap between industry and universities for the next generation of science, technology, engineering and mathematics (STEM) graduates. We need a clearer pathway for WA graduates into business, particularly those that are studying at higher levels of education. Right now, only 30 per cent of PhD students go into industry or government careers when they complete their studies, compared with more than 70 per cent in most industrialised nations. Robots will continue to lead improvements in our standard of living for decades to come, as they have for decades past. We have much to gain at work and at home — we just need to focus on the transition. ¢
BUSINESS MUST GET ON THE FRONT FOOT Clever communication strategies are vital if we are to win the hearts and minds of all Australians
atching Question Time prior to the winter recess provided a stark illustration of politics in our country — and what it means for policy development and influence. On one hand, Opposition Leader Bill Shorten was justifying his party’s decision to rally against needs-based school funding. With the power to deliver this reform, the ALP has instead decided to use its Senate power to block legislation befitting of its own platform.
exports from the east coast. With such contrast of policy positions to party philosophy, any outcome is possible. Indeed, the fabric of Australia’s 25 years of uninterrupted economic growth is being challenged from the Left and Right. Cries of rising inequality will increasingly be used to justify intervening into business and personal affairs, despite the evidence that this trend is false, with indications the reverse is true. Globally, there are also fewer people living in poverty than ever before. This threshold outcome, as well as the question of the gap between low and high-income earners, should not be ignored. Such prosperity is not a result of state planning, but of growth driven by neo-liberalist policies. Business associations need to
SUCCESS HAS COME WHEN IT GETS ON THE FRONT FOOT, TAKES A CALCULATED RISK, AND LAUNCHES A CONCERTED AND TARGETED CAMPAIGN On the other side of the house, Prime Minister Malcolm Turnbull was lauding as a success the decision of his Government to intervene in the affairs of companies and restrict LNG
act as a centurion guard to this established method of delivering economic growth and prosperity. How effective such advocacy can be, and whether the right tools and structures are in place to gear
up for the battle ahead, should be front of mind for each and every organisation. As a starting point, business associations are hamstrung by the old quandary of policy positions being underlined by facts and a healthy respect for legal institutions. This is not always so for opponents of economical liberal reforms. Take ACTU secretary Sally McManus’ interview on the ABC’s 7.30, where she supported the breaking of laws where she felt it was just to do so. She also said the construction company Grocon was fined $330,000 for killing five workers, which was less than fines dished out to CFMEU for breaches of workplace laws related to the incidents. Every part of this claim is simply false. You would never see Business Council of Australia’s Jennifer Westacott or other industry leaders speaking with such abandon. Yet, what damage has the interview done Sally McManus? Another stumbling block is the inherent practicality and conservatism of business, and therefore business associations. I’d be a very rich man if I received a dollar for every time I heard someone utter “business should be more like Get-Up”. To highlight the Left’s more media-savvy strategies, on the same day the Fair Work Commission released its finding on reducing Sunday penalty rates, the ACTU had already rolled its communications to protest the decision. The crème-de-lacrème of preparation was having
magnets ready to be put on wheelie bins for collection night. Business success has come when it gets on the front foot, takes a calculated risk, and launches a concerted and targeted campaign to influence Parliament and win-over the community. The strength of Get-Up! rests in its campaign focus, the ability to tap into individuals and profile their interests, a healthy interpretation of facts to support their views, and a structure that allows a speedy response as crises unfold. The recent CCIWA campaign on the GST is a demonstration of a well-run campaign. It is underpinned by sound argument in the national interest, has received influential support from the Business Council of Australia, and has an ally in the McGowan Government. Importantly, it has also tapped into strong community sentiment that WA is getting dudded on GST. Indeed, it’s a vote changer, and by that nature must be paid attention. Association bodies need more campaigns like this, and need to identify the internal processes that can inhibit sound and influential advocacy. We also need to be sure not to be pushed to the fringes on difficult policy issues, understanding that this can affect our credibility in other policy areas. The drums of government intervention are beating, and neoliberalism protectors are shrinking. Business associations need to be battle-ready. ¢
SEPT EMBER 2 017 BUSIN E SS PU L SE 5
CCI@WORK 1. Lighthouse Leadership Series with the Business Council of Australia JULY 11 Coca-Cola Amatil group managing director Alison Watkins, Australian Unity group managing director Rohan Mead and BAE systems’ head of engineering Brad Yelland spoke to a crowd of 250 at this special Lighthouse Leadership event at the Hyatt Regency. They discussed the merits of leadership and offered some fascinating insights into relationship between the public and big business, and how it was damaging national prosperity. ¢
Book Club Planning to Win JULY 14 Business consultant Gordon Pender spoke about his book, Planning to Win, which details exactly how to prepare a business plan, illustrates the elements of a good business plan and how they fit together to produce a professional and compelling document. He also shared brilliant stories from his own experience. ¢
CCI’s The Guide gives you a look ahead at the important events, courses and dates to help you do business better. For more information go to cciwa.com/the-guide
To register your interest in receiving more information about any of our 2017 events, please email email@example.com 6 B US I NE S S P U L S E S EPTEM B ER 20 1 7
Whittaker: Australia’s Financial Wizard of Oz JULY 19 Fiscal superstar Noel Whittaker entertained attendees with his deep knowledge of the finance sector. The former Investment Planner of the Year and Australian Securities and Investment Commission committee member even gave away a few lessons he’s picked up from his many decades in the business. ¢
breakfast with Lord Digby Jones
3 DIARY NOTE:
JULY 26 Internationally-revered business advocate Lord Digby Jones spoke of his ambition for business and the global challenges the sector faces to a packed CCI breakfast at the Parmelia Hilton. He covered controversial topics like Brexit and Donald Trump, and urged governments and politicians to support businesses in helping people left behind by globalisation. ¢
with Professor Hugh Bradlow
Lighthouse Leadership Series with Richard Goyder SEPTEMBER 12
AUGUST 4 Retiring Telstra chief scientist Hugh Bradlow had the 150-strong crowd at the Parmelia Hilton engrossed in lessons from more than 20 years at the cutting edge of ICT in Australia — and his predictions for the future. He explained how things like the Internet of Things, big data and machine learning would change everything we do, from our personal lives to business and what kind of challenges we’ll face along the way, and how we will be living our lives come 2050. ¢
Here’s an exciting chance to hear from outgoing Managing Director and Chief Executive Officer of Wesfarmers, Richard Goyder. Under Goyder’s leadership, Wesfarmers acquired the Coles Group of companies, setting the record for biggest transaction in Australia’s corporate history and cementing Wesfarmer’s place as Australia’s largest private sector employer. Outside of Wesfarmers, Goyder is Chairman of the AFL, a director of the Business Council of Australia and was made an Officer of the Order of Australia in 2013 for his service to business and the community via executive roles, as well as his promotion of corporate sponsorship of the arts and Indigenous programs. Goyder is also now Chairman of energy giant Woodside. Join us for lunch to listen and learn from a true business leader. Go to cciwa.com/events ¢
SEPT EMBER 2 017 BUSIN E SS PU L SE 7
A DAY IN THE LIFE OF...
TINA WILLIAMS, CHIEF EXECUTIVE OFFICER, VOLUNTEERING WA
nless I have an early meeting, I usually get to work about 8.30am, depending on the mood of the Mitchell Freeway. After a loud and cheery, “Good morning”, I unpack my bag and flick on the computer. On route to our kitchen I’ll catch up on everyone’s news, then return to my office to plan my day. Volunteering WA was created almost 30 years ago by a group of organisations that decided they needed a memberbased association centred around volunteering. We now have 760 members made up of not-for-profits, government agencies and businesses with employee volunteering programs. No day is quite the same, which is why I enjoy my job. My time is
divided between implementing our strategic priorities and managing the day-to-day business of the organisation. One minute I might be helping an organisation improve their volunteer program, or I could be advising businesses on employee volunteering. Since Volunteering WA is WA’s peak volunteering body, I also represent the organisation on various committees and advocate as much as possible for the sector. Like many other not-for-profit CEOs, I also spend plenty of time seeking new funding and collaboration opportunities. I’m pretty sure I work with the loveliest people around. They are a highly professional, passionate bunch whose common purpose is helping others do good. We are a family-friendly
BESTSELLERS LAST MONTH Business and Finance 1. B arefoot Investor: The Only Money Guide You’ll Ever Need - Scott Pape - $29.95 2. Courage to be Disliked - Ichiro Kishimi & Fumitake Koga - $24.99 3. Planning to Win; A Guide to Business Planning & Financial Modelling - Gordon Pender - $29.99 4. Taming Toxic People; The Science of Identifying and Dealing with Psychopaths at Home and at Work - David Gillespie $32.99 5. Live, Lead, Learn; My Stories of Life and Leadership - Gail Kelly - $35.00 Source: Boffins Books in Perth CBD
AN INVESTMENT IN KNOWLEDGE PAYS THE BEST INTEREST American diplomat and inventor Benjamin Franklin 8 B US I NE S S P U L S E S EPTEM B ER 20 1 7
organisation with many part-time staff, so the desks are often filled with different people on different days. Six of our staff work in volunteer hubs and centres in various WA locations, working directly in the community placing volunteers where they’re needed most. I believe that at the core of a happy and productive workplace is good communication, and this includes listening. We constantly share our successes and challenges, and I have an open door for anyone, at any time. We’re highly-motivated because we know that our work makes a real difference to the livelihoods and well-being of disadvantaged people and the community. We are challenged every day to achieve a great deal on a tight budget and with limited resources. The answers lie in creativity and collaboration. Time management and prioritising
workloads are vital for me. On a daily basis, my concerns are ensuring that staff are happy, well-supported and equipped to perform their roles. If my to-do list is ticked and I convince myself I need to go the gym, I finish work around 5.45pm. However, sometimes I get stuck into something, which pushes out my leaving time. The plus-side is that I miss the heavy traffic; the downside is that my adored Jack Russells — Charlie and Benny — are beside themselves with anticipation for their evening walk when I walk in the door. Some people don’t know that we work with many businesses in WA on their skilled and team-based corporate volunteering programs. Companies with employee volunteering enjoy higher productivity, reduced turnover and happier employees. It’s a win-win-win for the employee, company and community. ¢
YOU ARE THE HR MANAGER HOW WOULD YOU HANDLE THIS SCENARIO?
You have made redundancies due to a downturn, but have just won a new tender. Can you re-engage some of the redundant employees?
he short answer is yes, you can. But unless you are able to re-engage all employees that were made redundant you will need to be careful in the selection of those you are going to re-engage. There is a risk of an unfair dismissal claim coming from employees who may feel that their redundancies were not genuine when you begin re-hiring. You should have clear records of the financial reasons that led to the decision to make employees redundant, and if you
properly applied an objective selection matrix to decide which employees were chosen for redundancy, then you should consider applying a similar tool in deciding who is most suitable to re-engage. It is also important to note that re-engaging staff within a short amount of time of their termination may also have an impact on leave entitlements. For more information, contact CCI’s Workplace Consulting Team on (08) 9365 7600 or email firstname.lastname@example.org ¢
EDUTECH THE NEXT BIG THING
According to a recent Austrade report, technology is revolutionising the way education is purchased, experienced and consumed. And Australia leads the way with education technology solutions for governments, education providers and employers, learners and investors. Our reputation in delivering a quality and high standard of education has long been recognised domestically and in international markets. There are over 1100 online education providers in Australia generating approximately $5.2 billion in revenue. The Edutech industry has grown by just under 11 per cent annually over the past five years and is predicted to expand by six per cent a year over the next five years, the report said. International Education is currently one of Australia’s top service exports, valued at $19.65 billion in 2015. Australia’s eLearning market is estimated to be worth A$5.9 billion.
1.3 MILLION The number of students enrolled in the government-funded vocational education and training system (VET) in 2016, an increase of 3.3 per cent.
THE STORY: NEW AGE OF SMART WORKERS
How robots, trade deals and work habits are changing the way we go about our business
“THE WORKFORCE WILL SPEND 30 PER CENT MORE TIME EACH WEEK LEARNING SKILLS ON THE JOB”
y 2030, the average worker will experience 17 different jobs over five careers as automation, globalisation and flexibility change the way we do things. They will spend 100 per cent more time solving problems at work than workers today, use maths and science skills 77 per more often and interpersonal skills 17 per cent more. These are the findings of research by the Foundation for Young Australian’s New Work Order report, which analysed more than 20 billion hours of work completed by 12 million Australia workers to predict the skills and capabilities that matter most in 2030. It found the workforce will spend 30 per cent more time each week learning skills on the job, and 41 per cent more time on critical thinking and judgment. Workers will need to develop an entrepreneurial mindset because management will fall by 26 per cent, organisation co-ordination will drop 16 per cent and teaching will be down 10 per cent. Source: The New Work Smarts report, Foundation for Young Australians; fya.org.au. ¢
LESSONS LEARNT Chris Leatt-Hayter Chief Executive Officer, Fremantle Ports Growing up I learnt … Many things from my wonderful parents who helped greatly in shaping my development. Mum was an ex-teacher who embedded many things in my mind with her love for short proverbs such as, “Everything has a place and there is a place for everything”, “Everything in moderation” and so on. The one that has always stuck in my mind and had the biggest impact on me through my life was, “It’s not what others do but what you do that matters”. From my family I learnt … I had a fantastic schooling at Perth Modern School, which drew students from many inner-city areas and gave me the opportunity to make strong friendships with kids from all backgrounds and nationalities. This has helped me greatly in life in recognising the importance of diversity, getting on with people from all backgrounds and appreciating the different strengths that people have. Importantly, many of these school mates remain my close friends today. This year I’ve learnt … With a great number of my work colleagues retiring or reaching retirement age this year, I have learnt how quickly decades of experience and corporate knowledge can walk out the door and how important it is for an organisation to be well prepared for this.
7.8 PER CENT The proportion of the Australian population aged 15 to 64 that participated in the government-funded VET system in Australia in 2016.
One lesson I wish I had learnt earlier … I wish that I had taken golf lessons rather than still hacking around the course after 20 years of playing the game. It is something that I will certainly do in the future when I set my mind to it and have the time. A small but crucial lesson to learn is … Again, from my mother, “Grasp opportunities that come to you and never be left wondering what could have been”. SEPT EMBER 2 017 BUSIN E SS PU L SE 9
PROFESSIONAL SUPPORT AND ADVICE CCIâ€™s Employee Relations Advice Centre (ERAC) is just a phone call away. Our team of experienced Employee Relations advisors provide CCI members with over the phone advice on a range of employee relations and human resource issues â€” all designed to make it easier to do business. Where assistance beyond phone advice is required, our Workplace Consulting team offers support and representation at discounted rates for members. Have an urgent ER/HR issue? The ERAC telephone advice line is open from 8am to 5pm, Monday to Thursday and 8am to 4pm on Friday. Call us today on (08) 9365 7660
(08) 9365 7660 | email@example.com | cciwa.com 1 0 B US I NE S S P U L S E S EPTEM B ER 20 1 7
LATEST POLL REINFORCES LOOMING GST BLOODBATH The issue remains front and centre in the minds of many WA voters
naction on the GST in WA could be the difference between Malcolm Turnbull winning or losing the next election, according to a recent poll commissioned by CCIWA. A state-wide Patterson poll of more than 800 Western Australians shows the ALP could gain a 27 per cent increase in the number of votes if the party endorses a policy to reform GST to deliver a greater share of revenue to WA. It would see Liberals such as Steve Irons and ministers Christian Porter, Ken Wyatt and Michael Keenan lose their marginal seats. CCI Chief Economist Rick Newnham says the independent polling strongly indicates GST reform is at the forefront of voters’ minds and inaction at a federal level could result in a heavy loss of WA Liberal seats.
GST IS NOW THE MAJOR ISSUE FOR SWINGING VOTERS IN WA “Western Australia not only deserves a greater share of GST, an increase of revenue from the Federal Government would help to improve the State’s economy,” he says. “If GST was distributed equally per capita, WA would gain more than $11 billion over the next three years,
which is the equivalent of seven new Perth Stadiums.” More than 80 per cent of those polled said that GST reform ranked highly as an issue leading into the next federal election. About 51 per cent of respondents indicated it was one of the most important issues. “GST is now the major issue for swinging voters in WA,” Newnham says. “Nine per cent of those polled said they would switch their vote from another party to the Liberals if PM Malcolm Turnbull committed to reforming the GST distribution, while 12 per cent of voters said they would switch to voting for Labor, from another party, if Opposition Leader Bill Shorten committed to GST reform.” Newnham says CCI and the business community are calling for the immediate introduction of a GST floor through which no state’s GST share can fall. This can be done immediately by Treasurer Scott
Morrison, simply by directing the Commonwealth Grants Commission, he says. “We are also calling for partial equalisation should the Productivity Commission (review of the GST system) conclude that the current GST model hinders national economic growth,” he says. “A partial equalisation system of GST distribution would not only increase muchneeded revenue for WA but also incentivise other states to grow under-developed industries which have the potential to pump billions into the national economy. “The vast majority of WA voters are not asking for special treatment; they are simply demanding a system that incentivises economic growth in the country, instead of stifling it.” In its submission to the Productivity Commission, CCI has demonstrated the current GST distribution mechanism hinders national economic growth.
The submission is supported by the Business Council of Australia and several other industry associations representing more than 18,000 businesses and 400,000 employees. Signatories included the Association of Mining and Exploration Companies, the Civil Contractors Federation, Master Builders Western Australia, National Disability Services WA, the Regional Chambers of Commerce and Industry WA, the Real Estate Institute of WA, the Tourism Council and the WA Road Transport Association. CCI’s submission was made in consultation with its 9000 Members and has the support of WA business leaders, including Wesfarmers Chairman Michael Chaney, Fortescue Metals Group Chairman Andrew Forrest, investment banker John Poynton and Satterley property group’s Chief Executive Nigel Satterley, who together wrote to the Productivity Commission to support CCI’s proposal. ¢
SEP T EMBER 2 017 BUSIN ESS PU L SE 1 1
SKILLS FOR THE FUTURE
WELCOME TO YOUR NIGHTMARE
A career change has made ex-nurse Nola Pearce even more passionate about helping people deal with a serious medical emergency
N HAMISH HASTIE
ot many businesses would put a severed head on their list of essential items when heading to a client meeting, but for Nola Pearce of TraumaSim, it would be a disaster if she didn’t. Pearce was a critical care nurse for several years before moving to first aid training. It was there that she saw a huge divide in the gruesome reality of an actual major injury and what people were being taught in classrooms. She says there is a disconnect between learning something in a classroom and applying that to real life.
YOU CAN’T TRAIN PEOPLE ON THE REAL THING SO BEING AS REAL AS POSSIBLE IS BEST “A lot of accredited training that people learn in a classroom through a power point presentation lacks any real depth, you can learn it by rote, 1 2 B USI NE S S P U L S E S E PTEM B ER 20 1 7
but it doesn’t mean you’ll be able to perform when a crisis happens,” she says. In 2008, Pearce flew to America in a move that would transform her business and reassess how she went about her work. It opened up a wonderful new horizon. She learnt how to make hyper-realistic injuries using products like silicon and fake blood, and has turned those skills into a booming business. “My interest was to create some realism in that type of training,” she says. “I went to USA and did some specialist moulage courses, and there I learnt special effects type processes to use within a health training situation. One of the trainers was an Emmy Awardwinning film make-up person.” In its eight years, TraumaSim has grown from making up pretend casualties in emergency drills to selling the moulage products and training others. Walking into her Midvale workshop where her team handmakes all their products is like walking into Freddy Krueger’s lair. There are torsos with cuts lashed across them, skin coloured
silicon pads covered in rashes and boils and even a tourniquet kit made to look like a thigh that’s been blown apart. TraumaSim has helped defence and emergency services operations across Australia stage realistic emergency situations that have even caused a few medics to faint. Pearce says her first big break came in 2009 when the Australian Army first took an interest. “That became a long-term contract, which is still going today. We provide that Australia-wide,” she says. In just the past six months alone, Pearce has flown around the country to make-up casualties in simulated plane crashes, terrorist attacks, train explosions and car rollovers. She makes-up volunteer actors to look like they’ve been electrocuted, cut, impaled and even works with amputees to simulate the loss of limbs. A lot of research goes into her
SKILLS FOR THE FUTURE
work and with a background as a nurse, Pearce is well placed to tell the actors how they should act depending on their injury. Making simulations feel as real as possible helps weed out problems with people and policies before a real incident occurs. “You never actually know how you’ll deal with a crisis until you’re actually put into that situation — you can’t train people on the real thing so as realistic as possible is the best,” Pearce says. “In all of the military training that we’ve done, I see quite regularly well-trained medics faint. “It’s good to find out that happens. Be it military or your average first aider that might be in a workshop, they need to know that’s the response they have — it builds people’s confidence to practise things in a realistic situation. “In terms of management, it helps them know their staff are well trained, that they can perform, and I think the realism
does test skills under pressure.” She says her clients regularly find flaws in their systems. “Every organisation will have policies about what to do in an emergency — this actually tests all of that in a realistic situation. “We do an annual one with Queensland Rail and they have really good systems in place, but they still find little hiccups, so that’s really a big part of it behind the scenes (to) improve systems.” Selling moulage products is also a big part of TraumaSim’s global business. She counts the Israeli Defence Force as one of her biggest customers. One of their most popular products — the tourniquet kit — was developed after the company first started making up casualties for army simulations. “The Army asked us to help them set up some tourniquet training using legs of lamb that had some intravenous tubing through it and a bit of fluid running out the end,” Pearce says.
“We said, ‘we think we can do it better.’ “After a few goes we came up with a product that looks like a badly-damaged limb and pumps out fake blood that slows when the tourniquet is applied correctly.” Pearce says she gets more of a kick out of helping organisations improve their emergency responses than she
did helping people as a nurse. “I really love what I do, I’m passionate about the effect that it has,” she says. “I love my nursing career, but when I left it I was burnt out and needed to move on, but this still feels like I’m giving something back. “I feel like I’m helping improve health outcomes for serious incidents.” ¢
SEPT EMBER 2 017 BUSIN ES S PU L SE 1 3
SKILLS FOR THE FUTURE
THE NEW REALITY
When Doug Bester noticed the video games his kids were playing were way ahead of mining software, he did something about it
he Virtual Reality revolution is here and one WA software company is carving a path in the training space. When Balcatta-based software firm Sentient was founded in 2000, it mostly focused on very technical control systems software. That changed when Managing Director and founder Doug Bester noticed the video games his children were playing were decades ahead of the software on which big mining and resources companies were spending billions. From 2008, he began hiring staff with gaming degrees and expanded the company’s products to 3D data visualisation, training games and animations. They have since created high-quality 3D modules for companies such as Woodside and Rio Tinto that play more like games than boring old training courses. VR training is one of Sentient’s
1 4 B US I NE S S P U L S E S E PTEM BER 20 1 7
most impressive offerings. It can be suited to a client’s needs and sees the user immersed in and interacting with digitally-reconstructed environments. When Business Pulse visited Sentient’s headquarters, we got to try a Working at Heights module. After the user places the VR goggles on they are guided through a training module and then asked to spot hazards on a worksite, or complete a task in line with company policy. We were asked to do exactly that; a digital worker was completing maintenance on an oil and gas site created by drawings, photographs/video and satellite imagery. Our spotting skills weren’t up to scratch, however, and our colleague perished because we didn’t tell him his harness wasn’t attached correctly. Another module saw us performing maintenance on a high-voltage power box in an underground mine. We had to place all our PPE on correctly before we could get to work and ensure all the safety switches were in the correct position. Fortunately, this time there were no “fatalities”.
SKILLS FOR THE FUTURE
Sentient’s Doug Bester and Chris Hellsten.
Sentient Business Improvement Consultant Catharine Payze says visualisation in training, even just playing a simple walkthrough safety game on a regular computer screen, is more effective than eight hours in a classroom. “When people are fully immersed, they retain better, they’re engaged better,” she says.
will play depending on the hazards they select. They then experience in real life the effect of their knowledge and training. “People play the game and they laugh when the consequence plays out, but afterwards at the lunch table they’ll say, ‘Oh, I hadn’t thought about that’. “We also know people do a whole lot better when they have
VIRTUAL REALITY TECHNOLOGY OFFERED A RANGE OF ADVANTAGES, NOTABLY IMPROVING SAFETY AND INCREASING EFFICIENCY “With Working at Heights, people are used to PowerPoint presentations and they say, ‘oh, you have to use your harness, you have to have it checked, you have to sign off on your training’, but they forget it as soon as they leave the classroom. “We put them in the virtual environment and they select the hazards, and the consequences
to go through the steps than if they have to write down what they think they should do.” Creating a 3D interactive environment is no mean feat, with the more complex modules often taking many months to complete. Lead software developer Chris Hellsten says his job is made easier by borrowing technology from the gaming industry.
“The industry has put billions of dollars into real-time rendering and we leverage some of this technology through a gaming engine called Unity 3D,” he says. “Without it we wouldn’t be able to come anywhere near a competitive price.” Hellsten says this also allows them to build their software so it can be run on the most basic of computing devices. He says while VR seems complicated, it isn’t that much harder to build than a regular training game. “It’s surprisingly not that much of a change from conceptually building it going from flat screen to VR,” he says. “For us is a very simple change but what I think it does for the user is a lot of people that can’t connect directly with the devices of a traditional computer feel a lot more at home in VR. “They can interact in a much more natural human way.” One of Sentient’s clients is Fortescue Metals Group. Chief executive Nev Power says they are using 3D visualisation and task simulation as a core part of their maintenance planning tools, and in some induction training. “Fortescue has always
embraced technology and innovation across the business and championed the sharing of ideas to improve safety, productivity and efficiency,” he says. “The suggestion to explore the use of 3D visualisation and simulation came from one of the Fortescue team. “Virtual Reality technology offered a range of advantages, notably improving safety and increasing efficiency. “The technology has now been successfully implemented by the Port maintenance planning team, as well as at Cloudbreak and Solomon for task simulation, planning and training awareness.” Power says the introduction of virtual reality technology has seen significant improvements in safety. “The technology enables all potential hazards to be included in the simulation, giving team members a clearer idea of the work environment and the potential to eliminate the hazard in the planning phase,” he says. “The simulation also allows team members to identify the most efficient approach to a task which has a positive impact on the bottom line.” ¢
SEPT EMBER 2 017 BUSIN ES S PU L SE 1 5
SKILLS FOR THE FUTURE
SCITECH’S BEAUTIFUL MINDS Much more than a fun place to take the kids on the school holidays, Scitech is transforming the WA educational landscape right when it matters most BY CARRIE COX
f the measure of a successful business is the building of strong relationships, then Scitech CEO Alan Brien can retire with his head held high. Now in the final weeks of his 17-year tenure, Brien has cultivated and maintained critical partnerships with WA’s largest companies to ensure the continued delivery of Scitech’s mission through good economic times and bad. That mission — to increase WA’s capability and participation in science, technology, engineering and maths, or STEM — is evolving rapidly as new technologies reinvent the way we learn and teach. But Brien says the unwavering foundation beneath it all is the value of partnerships. “We’ve been very successful in maintaining long-term relationships,” he tells Business Pulse. “I’m not interested in one-year relationships — nothing happens in a year. Because what we’re trying to achieve through Scitech is intergenerational, the vision has to be long-term.
1 6 B US I NE S S P U L S E S E PTEM B ER 20 1 7
“Our partnership with BHP is a 27-year one, Woodside is 25, Rio Tinto is 15, Chevron is 10, the CSIRO is 28, and there’s all the universities as well. Changes in economic conditions haven’t threatened these because it isn’t about companies finding spare cash; this is about essential community investment.
Industry involvement is critical to Scitech’s bottom line. Since its inception in 1988, the not-for-profit has operated on 50 per cent government support, with the remainder of funding derived from user-pays patronage of Scitech facilities and industry support. “My job has always been
THIS IS ABOUT BUILDING THE FUTURE WORKFORCE OF WA, ABOUT IMPROVING THE QUALITY OF FUTURE GRADUATES “The conversations we have are open and ongoing, so all parties are always looking at what the future looks like and making constant adjustments. These are values-based partnerships — much like a marriage.”
about two things: the mission and the margins,” says Brien. “You can’t achieve the mission without good margins, and part of that margin development has been bringing that industry partnership along.
SKILLS FOR THE FUTURE
Some Scitech crew put visiting schoolchildren through their paces.
“When I started we had 64 staff and a $4 million turnover. I leave with 130 staff and an $18 million turnover. And for every dollar the Government provides, they receive a dollar in return, so from the State’s point of view, that’s a fantastic return on investment.”
Beijing Beyond But what’s in it for the likes of BHP and Woodside? “This is about building the future workforce of WA, about improving the quality of future graduates and about changing lives,” Brien says. “And that change process isn’t just about imparting knowledge; it’s about creating pathways for selfdevelopment. “Those who are self-motivated and engaged have a higher propensity to achieve.” It’s lofty talk, but at a grassroots level Scitech’s work translates into a vast suite of teaching and learning programs delivered right across the state and beyond. From hands-on involvement in development of WA’s new STEM curriculum, through to robotics
programs for kids in the Pilbara, professional development training for out-of-subject maths teachers and an Aboriginal Education Program (AEP) that delivers outreach teaching to more than 50 of WA’s most remote schools. The physical Scitech centre within the City West precinct might be the visible flagship of the operation, but the reality is the organisation’s footprint extends right across WA. Brien proudly notes this year’s engagement figures are already up eight per cent and will easily exceed 500,000 people. That doesn’t include the extra million or so people overseas who interact annually with Scitech’s lucrative travelling exhibitions (there are currently eight in the US and one in Brunei). Brien talks animatedly about all of Scitech’s programs — and the enthusiastic staff who drive them — but he’s particularly effusive about Beijing Bound, a competitive program that partners secondary students in Karratha and Tom Price with Rio Tinto graduate mentors to develop
a science research project. “The two winning students and their mentors travel to China to contest the Beijing Youth Science Creation Competition,” he explains, “and when they come back, well, it’s transformative. It’s life-changing. Our student winner from 2012 is now studying science at UWA and working as a presenter at Scitech. And that’s a common story.” Taking STEM-inspired programs beyond metropolitan Perth has
long been a particular passion of Brien’s. “We know from the research that regional and remote children in WA are potentially 2-3 years behind a metro school’s academic results and many factors contribute to that, so for the last 17 years we’ve been running a program where we take a mini-Scitech across the State,” he says. “Every three years we reach 90 per cent of regional and remote communities — students, teachers and parents.” >p18
Do the maths CCI and its Members, through the organisation’s Education and Training Fund, are contributing to a Scitech-driven program to provide professional development training for ‘out-of-field’ maths teachers. Out-of-field teachers are those who teach in a subject or field that is outside their primary teaching qualification. More than a quarter of Year 7-10 maths classes in Australia don’t have a qualified maths teacher on board. CCI Workplace Development Officer Linda Winter says: “With the increase in STEM learning being called upon from business and industry, it is crucial that our teachers have the capabilities to teach students the content required in the curriculum. We need to lift the standards of numeracy in our school children in order to make sure that we have a workforce skilled for work in the 21st century.”
SEP T EMBER 2 017 BUSIN ESS PU L SE 1 7
SKILLS FOR FUTURE
> Small business involvement While big-name WA companies have underpinned the growth of Scitech, now recognised as one of the world’s leading science centres owing to its international reach, opportunities abound for small and medium-sized businesses to form partnerships with the organisation. “We don’t just deal with the big end of town,” Brien says. “There are many opportunities for WA businesses to work with us and at the same time make a difference in their local communities. Businesses that recognise the loyalty factor of supporting local schools, local families . . . keeping the
local workforce happy — there are many ways they can work with Scitech. “Businesses can sponsor a school visit to Scitech or professional development for teachers. Perhaps your business has some expertise that could be turned into a learning opportunity? Scitech can come to your workplace and help develop a teaching program for kids in the community. A lot of industries have a lot of expertise, so how do you facilitate a volunteering opportunity where staff want to give a bit more?”
Signing off Brien sounds like a man who’s still too enthused about his job to stroll off into the retirement
wilderness. He admits it will be very hard to walk away. “I’ve really enjoyed the last 17 years — the people, the partnerships. It’s been a wonderful experience and it’s very difficult to leave all that behind,” he says. “That’s partly why I made the decision to do some travel right away — to create a circuit breaker. It wouldn’t be fair for whoever inherits this job to still have the old guy hovering around. They deserve a clean slate.” At a recent meeting at UWA, Brien met a woman now volunteering at Scitech each Tuesday (one of 92 volunteers the organisation currently has on the books). “She was very humble, talking about how much she loved her volunteering work
at the centre, and then as we kept talking I discovered she’d been the Director-General of Education about 25 years ago . . . she’d been on the board,” he says. “She’d gone on to run a prestigious private school in Perth. But she was just so happy to be talking about her involvement at this grassroots level at Scitech and how much joy that gives her as a volunteer. I can see myself doing that down the track.” Former Cairns Chamber of Commerce CEO Deborah Hancock has been appointed to as Brien’s replacement, effective September 18. ¢
How to win big with the corporates Scitech CEO Alan Brien says one of his proudest achievements in his time at the helm is forging the organisation’s 15-year relationship with Rio Tinto. Rio Tinto is now Scitech’s largest corporate partner — its current five-year agreement is worth $3.5 million through until 2018. By the end of next year, Rio Tinto will have contributed more than $7.1 million to Scitech programs since 2003. Kellie Parker, Rio Tinto’s Managing Director (Planning, Integration and Assets), says the partnership remains a win-win scenario. “This is a great partnership — it resonates closely with our business,” she says. “It’s based on shared values, trust, credibility and a common goal to improve the prospects of the State and its residents by fostering science engagement and literacy. “Over the first 10 years, the reach and the achievements of our partnership were incredible. So, when we renewed the alliance in 2013 we looked for opportunities to build and grow an exciting future together both regionally and in the Perth metropolitan area. This resulted in a five-year partnership covering five initiatives designed to boost STEM education in WA. “Along the journey, Scitech has always understood that to be truly effective the partnership needs to be mutually beneficial. Our shared value is reflected in our desire to create a science-literate state where students are equipped with the necessary skills to pursue further education and careers in STEM-related fields. “Australia’s future social and economic prosperity depends on having a continuing supply of enthusiastic and talented STEM practitioners to help drive future industry and innovation. Tomorrow’s challenges will not be solved by today’s technology. We will need to continually evolve both in Australia and the resources sector. That is why our partnership with Scitech is important as we need to build and invest in younger generations to be excited about STEM.” 1 8 B US I NE S S P U L S E S E PTEM BER 20 1 7
SKILLS FOR THE FUTURE
FUNDING KEY TO UPSKILLING YOUTH
A strong level of school funding is vital, but what’s more important is how that funding is used, says Simon Birmingham
he Turnbull Government, like the Chamber of Commerce and Industry, understands the critical relationship between a skilled workforce and Australia’s future economic success. Our reforms across the education and training sector are about preparing Australians to capitalise on the opportunities that lie ahead for our economy. We’re building an education and training sector that gives everyone the skills they need to succeed. Before entering Parliament, I worked in the private sector, including for the Australian Hotels Association and the Winemakers’ Federation of Australia. That experience gave me insight into the challenges and rewards of business and industry in a changing world, an insight shared by many in our Government, including the Prime Minister. We know that a system that produces skilled and qualified people builds individual capacity to create happier, more productive lives. But, critically, it also builds the workforce to drive growth and ensure our economic prosperity. The passage of our school funding reforms in June was a significant milestone in building an education system that gives all students the opportunities to reach their full potential. Gonski 2.0, as it has been dubbed, will help ensure every child has access to quality education through funding that
is truly needs-based. Students who need more support will get more support and we’ll increase our investment by around $2300 on average for each of them. That means more specialist support and one-on-one time. We all understand how vital a strong level of funding is for our schools, but we also know that what’s more important is how that funding is used. We’ve asked David Gonski and a panel of educators and policy experts to make recommendations on practical measures that will reverse declining results and boost the preparedness of students for life after school. It’ll help schools and teachers to focus the additional resources we’re delivering on the things that have the biggest positive impact for students. This is part of our broader reform program to strengthen our education and training system as a whole — from early childhood to the VET sector, from primary and secondary schools to university, from research to trades. Many of you reading this will know that we have one of the best higher education systems in the world, but there is clearly room to build on our successes. We must ensure our graduates are equipped for the workforce. Our higher education reform package includes initiatives such as work experience in industry units of study and access to shorter sub-bachelor courses which will have more flexibility to respond to workforce demand. We’re also tying 7.5 per cent of taxpayer funding to the performance of universities across targets that will ensure students are getting the best possible support to succeed at uni and beyond. The Turnbull Government is doing all it can to ensure students have the skills to
take advantage of the many exciting opportunities on offer in the modern economy, but also that they have jobs to go to. Despite continued Labor opposition, we have cut the company tax rate for small and medium businesses to its lowest level in many decades which will allow them to invest in their business and hire more people. After Labor’s disastrous VET FEE-HELP scheme, we’re firmly focussed on restoring confidence in the vocational education and skills sector and addressing the decline in apprenticeships. Our new VET Student Loans program will ensure taxpayer-funded loans are only supporting students in courses linked to workforce skill needs at reputable providers. Our ambitious $1.5 billion Skilling Australians Fund will also create up to 300,000 apprenticeships and traineeships, focusing on high-demand areas. My colleague Karen Andrews, as Assistant Minister for Vocational Education and Skills, has been travelling the country meeting with industry representatives to build a coalition of stakeholders to drive Fund projects, including here in WA. While the Turnbull Government has been focussed on injecting quality, sustainability and innovation across our education and training system, the Labor Party has chosen instead to try to stymie change. Labor voted against record school funding and the needsbased funding model they once claimed to
support, they’ve offered no plan to responsibly fund our higher education system and better link training to workplace skills and they tried to block our reforms to child care and early education — a sector we all know is vitally important for hardworking families but also to set up our littlest learners with the building blocks in their education. Business and industry drive our economy, and human resources are at the heart of that. Aligning education and training with the needs of the future economy builds strong citizens and communities and fosters prosperity. I look forward to working with you all on achieving this goal. Simon Birmingham is the Education and Training Minister and a senator for South Australia. ¢
SEPT EMBER 2 017 BUSIN ES S PU L SE 1 9
SKILLS FOR THE FUTURE
A BEACON SHOWING THE WAY
A new $8.6 million wellness centre at an elite Perth school promises to change the way we think about educating young people
BY CARRIE COX
he statistics are alarming. One in four Australians aged between 16 and 24 currently has a mental health condition, while one in seven between four and 17 will have experienced a mental disorder in the past 12 months. And suicide remains the leading cause of death for young Australians aged between 15 and 24. What is going on here? Are we in the midst of a mental illness epidemic among our young? Or has it always been this way, but now we’re talking about it more, diagnosing it and measuring it? It’s a question put to Dr Kate Hadwen, Principal of Perth’s prestigious Presbyterian Ladies’ College, all the time. And while she doesn’t have the answer, she says it’s a moot point. “What’s happened in the past is out of my control,” Hadwen says, “but as a professional, I have an obligation to do something about it now.
20 B US I NE S S P U L S E S EPTEM B ER 20 1 7
“The statistics are definitely getting worse for young people. We used to see the early onset of depression and anxiety at around 15. We’re now seeing that track back to 12 and, for anxiety in particular, as young as 10. So, we’ve got to try and get ahead of the curve. “This is serious. We have one in four young people diagnosed with some form of mental illness, so in a class of 20 you’ve got a significant number of students who you know are struggling. I feel we have a strong obligation and also an opportunity to fundamentally change the way young people feel about their future.
Why wellness? Of course, much is already happening in the ‘wellness promotion’ space in Australia — many schools incorporate mindfulness-based subjects into their curriculums and provide counselling support — but Hadwen feels it isn’t enough. When she came on board at PLC two years ago, bringing with her a long research background in youth mental health and resilience, she quickly spotted an opportunity to do something more substantial at the school. “When I first started at PLC, there were plans for a building that had been put in place and
NOT ONLY DO WE GET HAPPIER, MORE PRODUCTIVE STUDENTS, BUT THEY DO BETTER ACADEMICALLY “We have an opportunity to change the conversation around education and what it should provide for young people.”
fundamentally those plans were about a physical fitness space for the girls,” Hadwen explains. “I saw the chance to create a dedicated wellness centre, a purpose-built
SKILLS FOR THE FUTURE
An artist’s impression of PLC’s new Wellness Centre.
facility that integrates wellness learning and specialist programs with physical health and nutrition.” Called PLC Lighthouse, the $8.6 million facility is due for completion in early 2018. But while excitement mounts within the 1200-student school as the building takes shape, Hadwen concedes it hasn’t always been an easy sell. “There has been some pushback, certainly,” she explains. “And I understand that this is a confronting prospect for some people and that it would be easier if I just allowed this to be a health and fitness centre — that’s an easier sell to the community. But that’s not what this is about, and that’s why I’ve really held the line on this. “What I’m interested in is longterm outcomes for these girls. I’m not interested in something that’s just addressing a NAPLAN score. Yes, that’s important, but you know what? Beyond school, what we’re doing with this project is far more important than anything else they’re doing and it will give them abilities both at school and well beyond.” Besides, argues Hadwen, citing numerous studies, wellness training actually enhances academic learning — far from eating into it.
“What the evidence tells us is that in schools that have great wellbeing programs, the students actually increase their academic outcomes by 11 per cent,” she says. “This was a major metaanalysis that was done around the world. Not only do we get happier, more productive students but they do better academically. The two go hand-in-hand. This is about helping our students be the best version of themselves.”
New ground While ‘wellness centres’ are popping up all around Australia at the moment — Melbourne Girls’ Grammar is set to open its $23m ‘Artemis Project’ later this year — Hadwen says they’re not all singing from the same song book. “I don’t believe there’s anything like Lighthouse in the world right now,” she says. “A lot of schools have come up with wellbeing centres, but when you look more closely at them, it’s basically a gym with a meditation room attached to it or something like that — and that’s not what this is about for PLC at all. “The Lighthouse is based around three different levels and for me it’s the integration of those levels that is most meaningful. The top level is for physical
wellbeing, the middle is the mindful level, and the bottom is the nutrition space. Those levels will together work as a whole — we are whole people — and I couldn’t give up any one of those components.” But why build a whole new centre? Can’t wellness be taught within the school’s existing physical spaces? “Well, yes,” Hadwen says. “We could run those lessons in a normal classroom, but it’s like science. If you run a science lesson in a normal classroom and you don’t have Bunsen burners and running water, you’re going to get one sort of outcome. The
same applies in wellbeing. “We have structured content that we deliver for the girls and, within Lighthouse, we’ll do that in a way that we have all of the resources there to facilitate and maximise the outcome of their learning, both in terms of wellbeing and academically.” Hadwen says PLC — a CCI Member — has already devoted considerable time to establishing baseline data so that the progress of the centre — namely the impact on its students — can be measured from day one and tracked long-term. “Coming from a research background, that’s very important to me,” she says. ¢
What’s in the Lighthouse? Rooftop garden Meditation and contemplative rooms Alternative learning areas Movement spaces Fitness machines Creativity and expressive arts room Workshop spaces Dedicated nutrition areas Tailored 0-5 year-old space Consultation rooms for health professionals and complementary health therapies Modern change rooms Healthy food cafe Offices for the school’s Director of Wellbeing, chaplain, senior school psychologists and PLC’s Wellbeing and Service Coordinators
SEPT EMBER 2 017 BUSIN ES S PU L SE 21
SKILLS FOR THE FUTURE
TRAINING BONANZA Thousands of dollars in government incentives are on the table for employers willing to take advantage of changes in migration numbers
W HAMISH HASTIE
ith local content more important than ever and a nation screaming for skilled personnel, there has never been a better time to upskill your workforce and take advantage of some incentives along the way. All levels of government are looking to boost trainee and apprentice numbers after continued falls over the past five years. Recent National Centre for Vocational Education Research shows there were 36,600 people in training in WA as of December 31 last year — a drop of 4100 over the previous year and 9300 less than the high of 45,600 in June 2012. One of the McGowan Government’s key election promises was implementing the Government Building Training Policy which ensures major Government building, construction and maintenance contracts are only awarded to companies that have at least
22 B US I NE S S P U L S E SEPTEM B ER 20 1 7
11.5 per cent of its workforce made up of apprentices and trainees. Employers are also slowly hiring more people, with the jobless rate remaining at its lowest level since October 2016. In the June quarter, Australia added 14,000 jobs. Apprentices and trainees will become more important as migration numbers drop. The number of visa holders has fallen from 81,300 in December 2016, compared to 85,900 in 2015. This will be compounded following the removal of the 457 Visa in July. To support employers, there are thousands of dollars of government incentives on the table for employers who are willing to take advantage of it. CCIWA’s Apprenticeship Support Australia administers over $17 million in incentives to employers in WA every year and walks employers through every step of the process. In the last financial year alone,
ASA distributed more than $6 million in commencement/ recommencement incentives and more than $8.9 million in completion incentives to WA employers. ASA manager Lena Constantine says putting on apprentices and trainees in a business allows employers to develop skills needed for their business and they attract about $4000 in government incentives. “Training can be tailored to ensure the skills being learnt by staff mean something to your business. They are a great tool to introduce a new person into your workplace to build their skills while they become fully competent,” she says. “They are also a great tool to get existing staff qualified in their job roles, ensuring you have a fully skilled workforce.” Constantine says ASA is an integral part of the WA business community fabric, and a key reason why CCIWA operates it is to support
SKILLS FOR THE FUTURE
Members and employers across the state, she says. “It’s good for business and it’s good for the state,” she says.
free service. Apprenticeship Support Australia is funded by the Australian Government to provide advice, guidance and
OUR AIM IS TO PROMOTE THE GREAT OUTCOMES TRAINING CAN DELIVER TO BUSINESSES “We believe that working together with employers, jobseekers, students and the community, we can get WA working again. “Our aim is to promote the great outcomes training can deliver to businesses.” Hiring an apprentice or trainee isn’t as hard as you would think. Constantine urged employers thinking about it to give them a call to see what kind of incentives are available. “All employers can access our
support to businesses to increase the uptake of apprenticeships and traineeships in the workforce,” she says. “With over 600 qualifications available, our team can help employers identify suitable traineeship and apprenticeship options for their business and staff. “We will assess businesses for financial incentive eligibility and provide advice on the pay roll tax exemptions available and provide unsolicited introductions to
appropriate training providers. “We can also provide ongoing contract management support, ensuring that their training contract requirements are being met and incentives are claimed; and we offer mentoring support throughout the training contract to minimise any issues that may arise.” Constantine says they assess all business individually and can let them know exactly what sort of financial support they are eligible for. “There are also incentives like the payroll tax exemption in WA which applies to all apprentices and trainees in the workforce,” she says. “Apprenticeship Support Australia can also advise employers of additional incentives available when taking in mature aged apprentices/ trainees or that have a disability. “This financial support can assist employers to reduce the cost of workplace training and ensure that they are building the skills that are
meeting their business needs. “It’s not just advice and support that Apprenticeship Support Australia offers, they also have some handy tools to help your business find the perfect apprentice or trainee. “On our online career platform, SkillsRoad, we offer all sorts of recruitment advice and tools from interview preparation to a Jobs Board, where employers can advertise their vacancies at no cost,” Constantine says. “The best thing about this jobs board is that is has more than 118,000 students and jobseekers registered nationwide, so a prime audience for entry level roles.” Apprenticeship Support Australia delivers Australian Apprenticeship Support Network services on behalf of the Federal Government to provide free support to both employers and apprentices. For more information contact the Apprenticeship Support Australia team on 1300 363 831. ¢
SEPT EMBER 2 017 BUSIN ES S PU L SE 23
F HAMISH HASTIE
or the first time, Australians will be able to step on a plane in WA and step off on British soil when Qantas’ new Perth to London route starts next March. The 14,498km leg will take about 17 hours and once underway will be the third longest passenger flight in the world, bringing with it huge tourism benefits for WA. But making the proposal fly wasn’t easy, with Qantas, Perth Airport and the then Barnett government struggling to agree from which terminal the planes should fly. The deal eventually struck late last year will see the flights operate from Qantas’ current domestic terminal (along with Qantas’ current international flights to Auckland and Singapore). A Qantas spokeswoman says the flight was merely a pipe-dream a few years ago, but thanks to the next generation of planes it is now possible.
24 B US I NE S S P U L S E S EPTEM BER 20 1 7
“When Qantas created the Kangaroo Route to London in 1947, it took four days and nine stops,” she says. “With the introduction of the 787-9 Dreamliner, an aircraft designed specifically for comfort on long-haul sectors, we’re now able to link Australia and the UK for the first time in one hop. “Because it sits on the west coast, Perth is perfectly placed for connecting customers from other parts of Australia, and it’s also a fantastic tourism destination in its own right for people visiting from overseas.” The flight will be an attractive option to Europeans wanting to visit Australia but not wanting to waste time at other airports chasing connecting flights. It will mean WA will be a port of call for international visitors, potentially exposing them to exciting tourism opportunities they might not have considered if just visiting the east coast.
It will also boost the amount of people employed in the tourism industry, which currently sits at about 100,000. She says it’s great news for WA because it will bring Australia as a whole closer to one of its biggest trade partners and sources of visitors in the world. “Travellers can enjoy swimming with whale sharks in the Ningaloo Marine Park, which offers the world’s largest fringing reef and is only a two-hour flight from Perth to Exmouth, or experience camel trekking on Cable Beach, with 12 return flights to Broome from Perth per week,” she says. “With customers able to transfer from the West Australian capital to 10 onward destinations across the country within four hours of arrival, including seven regional towns in Western Australia using the Qantas Walkabout Pass, the new non-stop service makes it easier for travellers to visit family and friends.”
KINGDOM HERE WE COME
Britain beckons and Qantas has heard her call
CCI CEO Deidre Willmott says CCI has worked hard to see Qantas’ direct flights become a reality. “We could see tremendous opportunities for WA. In combination with Perth Stadium also opening next year, both will be important economic drivers for WA businesses,” she says.
from London as a destination and an event at Perth Stadium could well be part of what brings them out here to spend some time in Perth. “They can then spend some time touring the north or south of Western Australia or go on to Melbourne on that direct flight.” The Tourism Council has also
THE 14,498KM LEG WILL TAKE ABOUT 17 HOURS AND ONCE UNDERWAY WILL BE THE THIRD LONGEST PASSENGER FLIGHT IN THE WORLD “We will have a number of things converging. With direct flights from London starting up next year it will provide an opportunity for people coming
lauded the announcement. Tourism Council WA CEO Evan Hall says the London-Perth direct service will put Perth on the world aviation map.
“Perth will grab the world’s attention as the gateway to Australia from Europe and the east coast of the United States,” he says. “It’s not just London direct to Perth, it means New York one-stop to Perth or London one-stop to Broome.” Hyatt Regency Perth General Manager Sholto Smith says the flight will be beneficial for the wider tourism industry. “Any activity of this nature, if creating more awareness of Perth as a destination, can only be a good thing,” he says. “I believe Perth’s focus should be on becoming the gateway into Australia, now with the direct flight from London and also given its proximity (and same time zone) to South East Asia.” Having the flight is great but people need to know about it first, and that’s exactly what Qantas plans to do in partnership with Tourism WA. “Qantas has expanded its
marketing partnership with Tourism Western Australia to maximise the tourism benefits of the new service, and will also make Perth-London the focus of the next phase of its Feels like Home advertising which launched in late April to both Australian and UK audiences,” the spokeswoman says. “Since commencing in 2014, the Feels Like Home adverts have clocked up over 17 million views on social media channels alone.” She says they’re not just stopping at Perth to London. “In addition to the new non-stop London to Perth service, we’ll also operate the Qantas Dreamliner on the Melbourne to Los Angeles route and as we take delivery of more Dreamliners, we’ll be looking at a range of options, including the possibility of flying to Perth from other destinations across Europe — however there’s no set timeframe for this at this stage,” she says. ¢
SEP T EMBER 2 017 BUSIN ESS PU L SE 25
CULTURAL K We will soon have an iconic venue that will be nationally and internationally known — and that will be a new concept for us
or a country that lives for its sport, it’s little wonder that the almostcomplete Perth Stadium will give WA a huge boost in its cultural identity. CCI CEO Deidre Willmott, who for three years was General Manager of the 2006 Melbourne Commonwealth Games Organising Committee, says the stadium will be more than just an important driver of economic activity. Signalling a new chapter in the State’s development, the stadium will become a key part of our cultural landscape in the same manner the MCG holds a special place in the hearts of Melbournians; ditto the Opera House to Sydneysiders and the Eiffel tower to Parisians. Willmott can see something similar for Perth. “What we found as we did our research was the venues were an incredibly important part of that event. Half the MCG was rebuilt for the Commonwealth Games and people couldn’t wait to go and see their beloved MCG with an athletics track in it,” she says. “The stadium will change
Perth and it will change our community in ways that none of us have imagined. It now means we have a destination for sport and other events — that is itself part of the attraction. “In Perth, we admire the culture that Melbourne has around its sport and events. They have been very meticulous in how they put that together and they built the layers of their tourism, their sport, their international education, their community.” Its location on the Burswood Peninsula will open up a new area of Perth, directly linking East Perth to Burswood via the controversial footbridge, with the views from the stadium and its restaurants, parks and river walks attractions in their own right. “When I went with Peter Beattie (2018 Gold Coast Commonwealth Games chairman) around the stadium recently, he stood on the concourse and looked out towards the city, the WACA, the view down the Swan River and said, ‘Whoever decided to put the stadium here is a genius’,” Willmott says. “As people come to see not only the stadium itself — and it is amazing inside — they will be visiting the best stadium in Australia, so the venue itself can be as important a destination as the actual
26 B US I NE S S P U L S E S EPTEM B ER 20 1 7
event people are going to watch. “People will talk about it because of where it is located in the same way we have heard people talk about Adelaide Oval and what an amazing destination it is.
and from the events on game days,”she says. “They will have an opportunity to be part of what the event is, to back their favourite team, play the music of the visiting artist such as Ed Sheeran, and
WHOEVER DECIDED TO PUT THE STADIUM HERE IS A GENIUS “The bit that I really saw and experienced working for the Commonwealth Games in Melbourne was the important part of cultural identity that venues play. We will now have an iconic venue that people around Australia and perhaps even the world will talk to us about as soon as they hear we are from Perth. That will be new for us.” With a 65,000 capacity, Willmott hopes businesses will capture a share of the benefits by attracting people to their venues before and after events at the stadium. “One of the obvious is cafes and bars that might be near train stations where people will be travelling to
see themselves as a being part of that.” General Manager of Aloft Perth, Stephen Morahan, concurs with Willmott, saying the opening of Perth Stadium will be a game changer for the hotel, particularly on weekends. The new hotel in Rivervale, with its bar, restaurant and 24-hour self-serve snack pantry, is just a 15-minute walk from the stadium. “Sixty-five thousand people need both parking and places to stay and we are the next closest venue to that stadium, apart from Crown,” he says. “Our proximity means that people have an alternative to that area, which they haven’t had before.” ¢
The view from the stadium’s 5th floor Skylounge. Photo: Kelly Pilgram-Byrne. Inset: The turf is down.
ICK-OFF CALL FOR WA BUSINESSES TO JOIN THE STADIUM TEAM With the structure now more than 90 per cent complete, excitement is rapidly rising BY MIKE MCKENNA
t’s not long until the Western Australian community and visitors from interstate and overseas can enjoy world-class events in this magnificent venue, many of which have never been seen before in Perth. Some of the events already locked-in include: two Ed Sheeran concerts in March; current English Premier League Champions Chelsea Football Club vs Perth Glory in 2018; the Bledisloe Cup and State of Origin II in 2019. More events will be revealed in the months ahead. There is a lot of work to be done between now and early next year to ensure everything is in place when we open the gates for the very first time. A current focus for our team centres around procuring the goods and services needed to operate this world-class venue, in turn providing opportunities for local businesses. WA businesses have already been big winners at Perth Stadium. During the construction phase over $463 million worth of contracts were awarded to local companies, which in turn generated over 500 new jobs. For the operations phase, we will award contracts worth over $150 million during the
first five years. Several opportunities have already been released to the market and our busiest procurement period will be in August and September 2017, with around 50 packages to be released. Local businesses, big and small are invited to tender for these contracts and be a part of contributing to the ongoing operations of this world-class venue. Some of the opportunities that will be released in coming months include the supply of 1500kg of coffee beans — we expect to sell a whopping 200,000 cups of coffee each year, supply of meat products including beef, lamb, pork, sausages and chicken, and bakery goods including buns for the 250,000 burgers expected to be consumed each year. Opportunities aren’t limited to food, we also need event security and patron medical services, uniforms and laundry services for our 2000-strong workforce, catering and cleaning consumables, audio visual services, supplementary event staff and much more. Ultimately, we are looking for the highest quality products and services that deliver the best value for money. As part of our buy-local approach, during the assessment and evaluation process we will also consider a supplier’s contribution to the WA economy, the potential for local job creation, the opportunity and support they
will provide to other WA-based businesses and organisations and the economic value directly attributable as a result of doing business with the Stadium. Forming partnerships and strong working relationships with local suppliers is key to meeting the ongoing needs and service requirements of the Stadium, contributing to the successful delivery of the all-important ‘fans first’ experience for over 1.5 million Stadium event attendees we will attract each year. Companies interested in finding out more about the supply opportunities available should visit our website, www.venueslive. com.au/suppliers, select the relevant opportunity and register their details on the dedicated portal. With the first contract awards to be announced soon and new events to be announced, the next few months are set to be action packed before the doors of this world-class Stadium are officially opened. As a truly Western Australian venue, my team and I look forward to showcasing the products and services at Perth Stadium from as many WA businesses as possible, creating jobs for locals and long term, mutually beneficial relationships. Mike McKenna is the Chief Executive Officer of Perth Stadium ¢
SEPT EMBER 2 017 BUSIN ES S PU L SE 27
CLINTON’S WAY FORWARD
It’s not just all about mining, says one local who believes tourism could be the Pilbara’s next big thing
ron ore isn’t the only valuable resource in the Pilbara, and one tourism operator is determined to take ancient Aboriginal history and the region’s natural beauty to the world. Ngurranga Tours owner Clinton Walker has been delivering Aboriginal cultural tours for the past four years, with the support of the Ngarluma Yindjibarndi Foundation Limited, to improve understanding and diversify the economy beyond mining and resources. He is leveraging off increasing interest in the Pilbara as a tourism destination with things like NYFL’s revitalisation of the historic pearling town of Cossack drawing more and more people.
of the coastal and inland areas of the West Pilbara — and he uses his profound knowledge and spiritual connection to his land to educate those who come on his tours. He says this is why he wanted to start his own tour company; to share his deep understanding of land and culture to showcase a region rich in Indigenous history. “I was working in mining, oil and gas and construction for many years and decided I wanted to teach people about my heritage and show them the landscape from the way that I was always shown,” he says. “Aboriginal culture here spans back 50,000 years. “We also have an area that is considered the largest outdoor art gallery in the world which also has the largest concentration of rock art anywhere. “People want to come and see these things, but they want the
LOT TO SEE AROUND HERE, PRISTINE COASTLINES, AMAZING CORAL, GORGES AND WATER HOLES Tourists are responding, too. Business is so good Walker has already had to take on trainee guides and his Instagram page, which showcases images he takes during tours, has more than 5,200 followers. Walker is a descendant of the Ngarluma and Yindjibarndi people — the traditional owners
traditional owners to show them, and so that’s why I decided to get into it, to give them a better understanding of Aboriginal culture and the legacy we’ve left behind through our ancestry.” He says the Pilbara also has stunning landscapes that have endless untapped tourism potential.
28 B US I NE S S P U L S E S EPTEM BER 20 1 7
“There’s also a lot of pristine country around there, there’s big landscapes from a tourist’s perspective and its virtually unexplored,” Walker says. “We’re only just starting to find out that there’s a lot to see around here, pristine coastlines, amazing coral, gorges and water holes.” Walker had to work hard to perfect his product. “I worked to get that idea and turn it into a viable business, I did lots of research into the tourism industry because it wasn’t very big here in the Pilbara,” he says.
“I went on lots of guided tours with Aboriginal people and others across Australia so I could get a better understanding of what processes you need to put in place and so forth.” Walker says it gives him great pride to be able to share the region with others. “I get a sense of enjoyment and I feel like I’m getting back into my culture where as mining took me away from all of that,” he says. “I’m living my culture again and I’m sharing with others, so it always makes me feel good.” ¢
ASA’s on board to help expand venture Australian Apprenticeship Services is helping Clinton Walker expand his services through training. Industry Training Consultant Josh Stronach says they have recommended the most suitable training qualifications; in Walker’s case a Diploma of Tourism and Travel Management, and provided information on suitable Registered Training Organisations to deliver training in a regional area while providing advice on accessing government funding and incentives. Stronach says in collaboration with NYFL, they are now providing advice and assistance on growing the business through up-skilling their workforce. In August, they signed up a new trainee for a Certificate III in Tourism. “This new traineeship role has been created through the support of the Warrgamugardi Yirdiyabura Program,” he says. “The WY program makes a positive contribution to the Roebourne community through the up-skilling, training and education of local people for employment readiness in the local economy. “The program is funded by the North-West Shelf Venture and Woodside and managed by NYFL through offering two-year supported employment, education and training period for the local Aboriginal Community with a supporting host.” NYFL chief executive Bruce Jorgensen says Walker is a particularly good role model for the trainees. “Given the history of Aboriginal people in Australia and how they were traditionally made to feel ashamed of their culture, we’re managing to turn this around and make these young guys proud to share it and share it to visitors and tourists,” he says.
TOURISM IS A KEY DRIVER TO ECONOMIC RECOVERY
We’ve pledged $425 million in destination marketing and events over the next five years to expand tourism and increase visitor numbers
he McGowan Government went to the 2017 election with a plan for jobs. We are now implementing this by growing industries and developing skill sets for the future workforce. As Minister for Tourism, Racing and Gaming, Small Business, Defence Issues and Citizenship and Multicultural Interests, I’m responsible for five portfolios which all have the ability to diversify the state’s economy and create jobs. Western Australia has just emerged from an unprecedented growth in skilled labour capacity to meet the demands of boomtime construction in the mining and offshore oil and gas sectors. Tens of thousands of West Australians with expertise directly transferable to naval shipbuilding now find themselves unemployed as the major projects transition to production. WA also has 14 education and training providers with qualifications relevant to defence construction.
The McGowan Government is fighting for a greater share of defence work so we can retain these skilled employees and work towards growing a sustainable export market for defence products. Tourism is another industry we are focussing on as a key economic driver for our state. For many years, hotel room stocks in Perth were low and dominated by business travellers, meaning any rooms that were available for the leisure visitor were expensive. But new tourism infrastructure in WA means a more complete holiday experience is now available to visitors. More than 3300 new hotel rooms in Perth have either opened or are in the pipeline, offering a variety of affordable options for visitors. The challenge now is to not only fill the hotel rooms but also have trained hospitality staff to service the visitors. The latest Tourism Satellite Account figures shows tourism in WA provides 109,000 jobs, generating more employment opportunities than traditional industries such as mining and agriculture. We are committed to increasing that number and addressing the areas where we are lacking skills. One of the industry’s greatest workforce challenges is the recruitment and retention
of chefs. Current estimates predict that at least 300 chefs and cooks will be needed to services Perth’s new hotels, restaurants and Perth Stadium. We also see language qualifications and cultural knowledge as a prime skill required in servicing our growing Asian visitor market. A shortage of Mandarin speaking workers in the tourist sector is holding us back. By freezing TAFE fees, we hope to attract people to seek the training needed to access these fields of work. The McGowan Government also supports several training programs including the Tourism Council WA’s Industry Development Programs, the Aboriginal Tourism Development Program and Cruise Ship Tour Guides. We have pledged $425 million to destination marketing and events over the next five years in a commitment to expand tourism products and increase visitor numbers. We are also making amendments to the Liquor Control Act in a bid to grow opportunities in the hospitality sector and encourage a tourism friendly culture. Small bars, tour operators and craft alcohol producers are among those who will benefit from the reform. Small businesses represent 97 per cent of all business in WA, supporting three quarters
of all private employment in the state. The Small Business Development Corporation (SBDC) delivers and facilitates relevant, practical support and training to small businesses. Until recently, these services often missed new arrivals to the State. With more than 30 per cent of West Australians being overseas born, this was a significant gap. The SBDC has developed a new program which, in partnership with the Office of Multicultural Interests, aims to help Western Australian’s newly arrived Culturally and LinguisticallyDiverse Community (CaLD). The CaLD Small Business Program is a capacity business initiative designed to increase migrants’ awareness of, and engagement with, small business development services and foster business ideas that contribute to the economic prosperity of our State. A healthy society is a diverse and knowledgeable one, which also rings true for our economy. Focusing on education and training to support a range industries and diversify the state’s economy will remain a key aim of the McGowan Government. Paul Papalia is Minister for Tourism, Racing and Gaming, Small Business, Defence Issues and Citizenship and Multicultural Interests in the McGowan Government. ¢
SEP T EMBER 2 017 BUSIN ESS PU L SE 29
PILBARA MAJORS RAMP UP TRAINEE NUMBERS
BHP, Rio prepare for next phase of iron ore development in our north
io Tinto and BHP Billiton are ramping up their WA apprentice and trainee intakes as both upskill for the next phase of Pilbara iron ore development. In the space of two days, Rio Tinto and BHP — WA’s two biggest iron ore exporters — separately unveiled plans to boost their apprenticeship numbers significantly in the year ahead as new mining developments loom. “We’re now well advanced on our Mine of the Future program, and to building capability in our workforce for the new jobs we’ll require over the next decade,” Rio Tinto Iron Ore CEO Chris Salisbury said. “I am proud to announce over 200 new graduates, vacation students, apprentices and trainees will be recruited in 2018 across WA. They will join our already strong 300 employees participating in these training pathways today. “For apprenticeships alone, we will boost our 2018 intake by more than 50 per cent, as we train up our workforce of the future,” he said. BHP Iron Ore Asset President Edgar Basto said the company was focused on training and developing people from Port Hedland and Newman to provide local employment opportunities. “That’s why BHP is doubling our combined apprentice and trainee intake for 2018 and we hope to maintain or increase that intake in the years ahead,” he said. Most of the roles will be based in the Pilbara, with the recruitment for next year’s intake beginning this month, he said. The recruitment would be done in stages using traditional advertising plus social media, according to a BHP spokeswoman. BHP currently employs about
300 apprentices and trainees in WA iron ore, with most positions based in the Pilbara, and the expanded intake would build on that, it said. “It is important that local Pilbara students and residents who see a future in mining are provided with the best possible chance to enter the industry,” Basto said. A key target of the expanded BHP intake would be to award one-in-five apprenticeships and traineeships to Indigenous people, he said. The new BHP positions were across a range of disciplines and sites, from mechanical fitters to boilermakers and automotive electricians, across port, rail and mines. Rio Tinto said applications for its 2018 apprenticeship program were now open, with opportunities available in the key trade areas of heavy mobile equipment, light vehicles, fixed plant and electrical.
30 B US I NE S S P U L S E SEPTEM B ER 20 1 7
The respective training initiatives comes shortly after both companies revealed plans for major new iron ore mines. BHP has approved $244 million of initial funding for the South Flank iron ore project.
for its US$2.2 billion Koodaideri iron ore project. The development would require an expected 1600 construction jobs and a further 600 operational staff if approved, Salisbury said.
FOR APPRENTICESHIPS ALONE, WE WILL BOOST OUR 2018 INTAKE BY MORE THAN 50 PER CENT If approved in the first half of next year, the $3-4 billion project is expected to create several thousand construction jobs and hundreds of ongoing operational roles once production begins in 2021. And earlier this month, Rio Tinto approved a feasibility study
Rio Tinto is also expanding its Silvergrass mine, which requires about 500 new jobs during the construction phase, and has announced a round of procurement workshops across the State as part of a new push to boost local content in its WA projects. ¢
CYBER CRIME ON THE RISE So how seriously should businesses take a cyber attack? Very, say the experts
ybercrime is conservatively estimated to cost the Australian economy $1 billion a year, and major incidents like the two recent global ransomware attacks are rising. There have been over 114,000 reports of cybercrime registered with the Australian Cybercrime Online Reporting Network (ACORN) and 23,700 of these have been reported over the last six months.
world highlight the need for cyber vigilance. But for those without a systems engineering degree, the terms malware, spyware and ransomware can be confusing. So just how seriously should businesses take cyber attacks? Aon Risk Solutions National Practice Leader of Cyber Risk Fergus Brooks says “very”. “We are seeing the (use of this software) increase. A key reason for this is that organised criminals are making money from extortion and the sale of confidential information on the dark web/dark markets,” he says. “As long as they continue to
ALL BUSINESSES SHOULD CONSTANTLY ASSESS AND TEST THEIR IT SECURITY The 2017 Verizon Data Breach Investigations Report states that more than 50 per cent of the data breaches they investigate in the last 18 months came from organised criminals. The recent WannaCry and Petya ransomware attacks that affected governments, businesses and individuals around the
make money they will continue to look for new ways to compromise organisational and personal cyber security.” He says ransomware refers specifically to malware — or malicious software — that is related to extortion attempts. “An example would be the recent WannaCry worm that
encrypts files and then poses a demand for money, typically in Bitcoin or other digital currencies, in return for a key that can be used to decrypt/unlock the files,” he says. “Malware is a very broad term that refers to malicious software, spyware is a type of malware that will attempt to track keystrokes and other user activity to look for passwords and other confidential activity.” Brooks says for businesses that store customer details digitally, malware can be extremely damaging, well beyond the cost of recovering information. “In some cases, providing remote access to an organisation’s network allows the attackers to snoop around looking for valuable information like customer records and credit card details,” he says. “We consider a loss of customer information that an organisation has been trusted to protect can be extremely damaging to the business reputation, which is difficult to quantify and costly. “Third-party liability claims and regulatory penalties can also be a large cost.” Brooks says all businesses should constantly assess and test their IT security. “This is an ongoing process as technology continuously evolves.
“Every organisation should also have a cyber incident response plan,” he says. “This doesn’t have to be a big document but should be constantly reviewed and periodically tested. “This prevents organisations from making mistakes under duress, reduces the risk of reputational damage and thirdparty claims and penalties.” For businesses that do find themselves crippled by a cyber attack, Brooks says a cyber incident response plan would come in handy, and paying the ransom is not a safe solution. “It is up to the organisation as to whether to wipe the infected systems and revert to the most recent backup or any other approaches,” he says. “Many IT security experts agree that paying the ransom is a questionable solution as there is no guarantee that the criminals will provide the unlock key. “They may also see an organisation as a soft target and continue to make extortion demands.” The Australian Information Commission has provided a guide to creating a cyber security response plan here: www.oaic. gov.au/about-us/corporateinformation/key-documents/ data-breach-response-plan ¢
SEPT EMBER 2 017 BUSIN ES S PU L SE 3 1
STUDENT FORUM GETS AHEAD OF THE CURVE CCI and teachers lead the way in helping economics students get on their feet
he 2017 Student Economic Forum, hosted by CCIWA in conjunction with the Economic Teachers Association of WA, has given students from across the State new skills that will help them in their studies and career prospects. Schools sent their top six economics students to the forum, bringing together like-minded learners and economics professionals to discuss exam strategies and careers in economics.
The workshop started with an address by CCI Chief Economist Rick Newnham, who presented on The State of the Nation, offering valuable information for students as they prepared to analyse current economic policies and statistics in their WACE examinations. Students then picked the brains of more professionals, including CCI Senior Economist Nathan Viles, David Lay, a data analyst at the Australian Bureau of Statistics, and 19-year old entrepreneur Connor McLaughlin. The diverse career pathways taken by Nathan, David and Connor provided an invaluable opportunity for students to explore possible opportunities in economics and business;
Nathan’s experience in the public sector showcased the diversity of jobs available to economics students, while Connor’s entrepreneurial ventures as the founder of community project, Agents of Change, proved to the students the value of economics as a tool for social action. Agents of Change is a series of video interviews of successful entrepreneurs, business leaders, and change-makers that focuses on tips for success that can be applied in everyday life. WACE Chief Marker Steven Kemp discussed the upcoming WACE, addressing common errors and various strategies to help students better prepare for the examination.
Kemp is well-known to students as the author of economics textbooks, Discovering Economics, and Investigating Macroeconomics, used across WA classrooms. The day concluded with an interactive economics exercise during which the students brought together concepts learnt throughout the forum in a practical two-minute presentation presented to a panel of judges. Linda Winter is CCI’s Education and Training Adviser. For more information on the CCI’s Workforce Development Services, call (08) 9365 7539 or email firstname.lastname@example.org. ¢
Mention CCI when you get in contact so we can look after you!
32 B US I NE S S P U L S E S E PTEM B ER 20 1 7
BRINGING DOWN THE CURTIN ON SELF-INTEREST Our vision is to contribute to a safer, more secure region for ourselves, our friends and neighbours, says Deborah Terry, AO
he release of the Defence White Paper, Integrated Investment Program and the Defence Industry Policy Statement in 2016 has triggered an increase in the tempo and momentum of activities across government, industry and the university sector.
defence responsibilities. At Curtin, more than 12 research hubs are focusing on applied research that links directly with the Australian Defence Force and defence industry sector. Our aim is to deliver research that fundamentally bolsters Australia’s defence capability through deep and impactful collaborations in partnership with industry, government, and local and national universities. By contributing significantly to the nation’s sovereign defence industry capabilities, we intend to play a leading role in research that supports the achievement of Australia’s regional responsibilities and national
MORE THAN 12 RESEARCH HUBS ARE FOCUSING ON APPLIED RESEARCH Curtin University has heightened its defence-related research and is engaging strongly with the defence industry sector, Federal and state governments, and peak bodies such as CCIWA. Recognised as Australia’s most collaborative and fastest rising Australian university in Nature Index 2016, we are building on our existing track record of working with industry sectors to ensure our research is supporting Australia’s local, regional and global security and national
security defence priorities for years to come. At Curtin, we are also proudly leading the Team WA approach which brings together significant experience and capability from all WA universities to the Australian defence innovation system. In support of the State Government’s defence ambitions, WA universities are working together in a concerted effort to engage in the defence-related research with companies of all sizes.
Western Australia has some material advantages over the other states when it comes to maritime industries. It is home port to the Collins-class fleet, the majority of submariners and Australia’s largest naval base at HMAS Stirling. Curtin has built significant experience and expertise over a number of years by partnering with the global oil and gas, ICT and mining industries and delivering research that reduces costs, increases productivity and adds value to projects. But our industry linkages are broader and deeper than just research in mining and oil and gas — and we are keen to share lessons from these sectors with the defence arena. Curtin’s strategic vision in the defence domain is ambitious — not only to achieve our goals, but to contribute to a safer, more secure region for ourselves, our friends and neighbours. Our experience of working with large defence companies, defence-related small to medium enterprises, and training and research organisations that collectively provide the capability
that underpins the enduring naval shipbuilding industry, aligns strongly with the Defence White Paper’s core objectives. We are currently focused on bringing leading research in a wide range of areas to complex maintenance and sustainment problems, including corrosion engineering, remote sensing and satellite systems, subsea engineering, data analytics and industrial optimization. The ability of WA universities to collaborate and innovate while delivering large-scale, world-class products, positions the State well to participate in the very significant growth and investment now occurring in the defence sector. We applaud CCIWA’s leadership in this important area — the opportunities for the State are considerable — but we must work together to ensure that we realise the tremendous benefits not only for the economy and innovation ecosystem, but for our region’s security. Professor Deborah Terry, AO, is Curtin University’s Vice-Chancellor. ¢
SEPT EMBER 2 017 BUSIN ES S PU L SE 3 3
Q CCI ADVICE
We are about to formally investigate a grievance — can you please clarify the role of the employee’s support person during the interview?
IT CAN BE GOOD PRACTICE TO PUT THE EMPLOYEE ON NOTICE IF THEIR PERFORMANCE DOES NOT IMPROVE
It can be good practice to offer the employee the option of bringing a support person along to an investigation interview. If your employee chooses to do so, we recommend that the investigator outline the boundaries of the support person’s role at the outset. In doing so, the investigator should explain that the support person’s role is to provide support, and not act as the employee’s advocate. Your employee will generally be expected to answer the investigator’s questions themselves. It is also important to outline that the interview is confidential. This means the employee and their support person should be made aware that the investigation should not be discussed with anyone, internally or externally, unless for the purpose of obtaining professional support or advice.
DO YOU HAVE A QUESTION FOR ONE OF CCI’S EXPERTS?
34 B US I NE S S P U L S E SEPTEM BER 20 1 7
YOUR EMPLOYEE QUESTIONS ANSWERED We want to issue a written warning to an employee about their performance — what should we consider? Sometimes an employer considers it appropriate to issue a formal warning about an employee’s poor performance, and how each case is approached will depend on the circumstances. A written warning usually forms part of a broader performance management process. When drafting a written warning it is important that the warning specifies the performance issue which is of concern. We also recommend that the warning outlines a reasonable timeframe for the employee to improve their performance, and what is required of the employee in their role. The letter can also include the steps the business has taken to support the employee. It can be good practice to put the employee on notice that if their performance does not improve, then their employment is at risk, which could result in further action up to, and including, termination. It is important to keep in mind that whether the employee was satisfactorily warned of their unsatisfactory performance is a factor the Fair Work Commission considers in determining whether a dismissal is unfair. ¢
@ CCI_WA #asktheexperts
HR FINDS ITSELF IN THE FIRING LINE
Be aware the liabilities under the Fair Work Act can stretch far and wide
ccessorial liability under the Fair Work Act extends responsibility for breaches of workplaces laws to other companies or individuals who have knowingly played a part in the conduct. Under these provisions, an accessory can be held legally accountable for a range of contraventions, including underpayment of wages, failure to provide leave benefits and sham contracting. If you think of your business as being a vehicle that needs a driver, then generally, directors are responsible if the vehicle veers off the road, or worse yet, crashes and causes serious damage. But the Fair Work Ombudsman has in recent times shifted the focus on accessorial liability beyond company directors to those working in human resources, management and recruitment. This means that if you are the HR manager of your business, you need to take greater care in the advice that you give to the business because you are now the navigator in the vehicle and can be responsible for the direction the driver steers it. So, what level of responsibility do HR professionals have? To be held liable, s550 of the Act requires a person to have aided, abetted, counselled or procured the contravention, induced the contravention by threats or otherwise, conspired with others to effect the contravention, or if the person has been in any way knowingly concerned in, or a party to, a contravention. This last requirement is very broad, and will include any person who is deliberately
shutting their eyes to obvious conduct or facts. It will be assumed that HR professionals are across the legislation and the minimum requirements, and that contraventions should be easily identifiable and brought to your employers’ attention. While broad, it is unlikely to include negligence or recklessness, but if an employer cops a hefty penalty due to their HR manager’s negligence or recklessness, that manager is most likely going to be looking for a new job. One recent decision demonstrates the circumstances in which accessorial liability has been found. In Fair Work Ombudsman v Step Ahead Security Services Pty Ltd & Anor , the Court held a director personally liable for ensuring employees were back paid their correct wages. The Court had concluded that the business had underpaid eight of its casual workers around $22,000 over three months and had made orders for the business to back pay the underpayment, and issued a $257,000 penalty for the contravention. Justice Jarrett identified that the director of the business had previously operated a number
of other similar businesses, all of which had been targeted by the FWO and subsequently wound up, that this business was also involved in winding up proceedings and that the director was already involved in another security business. The Court held that the director’s pattern of behaviour demonstrated a blatant disregard for the law or minimum entitlements of employees, and that he was in control of the business and its decisions that resulted in breaches of the legislation. The Judge concluded that the director’s actions constituted involvement in the contraventions in accordance with s550 of the Act, and as such, was liable for a personal penalty of over $50,000. It was identified that the company was “not in a healthy position” and as such, there was a significant likelihood that the employees would not receive their back payment of wages as ordered. Justice Jarrett then took the step of holding the director personally liable for the $22,000 of outstanding underpayments in accordance with s545 of the Act, which allows the courts to make a compensation order or injunction
to be made against a person who has contravened the Act. The Court stated that section 545 of the Act was different from previous legislation that only allowed orders to be made against the employer, whereas the broad reference in the Act to a “person” is a significant deviation that expands the scope of who orders can be made against. This decision is important because it expands the range of orders that the Court may make in the future, particularly if the FWO continues to increase the amount of prosecutions that include accessorial liability. CCI’s Employee Relations Advice Centre and Workplace Consulting Team can be your pit-team and assist you to keep your vehicle operating smoothly, so if you have any questions about accessorial liability or other workplace issues, please contact us on (08) 9365 7500. To ensure that your navigator completely understands their obligations under workplace laws, we also offer an intensive Masterclass which will be running in November. Please go to www.cciwa.com/cci-irmaster-class for more details. ¢
SEPT EMBER 2 017 BUSIN ES S PU L SE 3 5
BEST OF THE BEST SHINE BRIGHT IN TRAINING
ASA’s biggest clients are finalists in the WA Training Awards
ore than 30 finalists have been announced in the 2017 Training Awards, the State’s leading training prize run by the Department of Training and Workforce Development. WA’s top employers in training have been recognised in the Apprenticeship Support Australia Employer of the Year award. Two of Apprenticeship Support Australia’s clients, McDonald’s Australia and Roy Hill, are finalists in the awards to be announced at a presentation dinner on September 15.
In the Small Training Provider of the Year category, another CCIWA organisation, the Industrial Training Institute, has been named as a finalist. The awards highlight and recognise the great training outcomes employers are achieving and contributing to the wider West Australian community. Education and Training Minister Sue Ellery says there has never been a more important time for the training sector in WA. “These finalists go above and
beyond to drive opportunities and partnerships, a key factor to achieve employment targets and build a stronger WA,” she says. “These finalists are setting the benchmark because we are looking for training on which to grow jobs and support the economy. “This awards program opens doors and gives finalists opportunities to take their skills even further. “Highlighting the value of training pathways affords an opportunity to celebrate the people and organisations behind
the economic development of our state and the contribution they have made towards a bright future for WA.” State winners will receive $5000 in cash or prizes and will be eligible to represent the State at the Australian Training Awards in Canberra in November. Thinking of employing an apprentice or trainee but not sure where to start? Contact the team today at info@apprenticeshipsupport. com.au or 1300 363 831. ¢
WORKSAFE ON THE MARCH There are numerous traps you can fall into if you don’t put safety for your workers first
orksafe, now a division of the newly-created Department of Mines, Industry Regulation and Safety, has recently completed a series of inspection projects for select industry groups. The project’s focus was to assist employers in the respective industries meet their OSH duty of care responsibilities through the provision of information, and ensure employers understand their obligations under the OSH legislation. Workplaces that fell into the industry groups selected were chosen at random for inspection with emphasis placed on Worksafe’s priority areas and industry specific hazards such
as mobile plant, manual tasks and falls from height to name a few. Industry groups selected were as follows: Good and equipment rental and hiring Commercial Cleaning Pubs, Taverns and Bars Plant/Mobile Plant in Retail and Transport A total of 573 workplaces were visited with the most commonly-used form of enforcement action being improvement notices totalling more than 3100. To assist workplaces improve their safe systems of work, Worksafe provided to employers visited general and industry specific information. Of interest was the type of risk areas that improvement notices were issued to across the four industry groups. The top three in order by volume were: 1. Hazardous substances (624)
36 B US I NE S S P U L S E SEPTEM BER 20 1 7
2. Mobile plant (552) 3. Emergency precautions (452) These risk areas represent more than half of all the improvement notices issued. While data is not available for the specifics of the improvement notices, it presents an interesting cross-section of industry and the challenges faced by business in understanding their OSH obligations and implementing safe systems of work to reduce accidents and injuries in the work place. Indeed, there are cases nationwide where workplaces have either been fined or were required to enter into an enforceable undertaking for not having the appropriate safe systems of work that led to an accident or incident. As an example, an employer in NSW was required to implement a traffic management plan across multiple sites that involved monitoring and directing forklift and delivery drivers as part of
an enforceable undertaking totalling over $450,000. Not understanding your risks when it comes to OSH or not having appropriate safe systems of work can certainly place employers at an increased risk of accidents and injuries, thereby increasing the likelihood of action taken by Worksafe. CCI has a team of Safety and Risk Consultants that are available to provide guidance and information to reduce the risk of these events occurring. Our Safety and Risk Services provide free advice and one free OSH Walkthrough per year. CCI is participating in a review of Worksafe legislation and will keep Members informed of any updates or changes. Matt Butterworth is a CCI Workplace Consulting Safety and Risk Consultant. For any issues relating to OSH, contact 9365 7415 or email@example.com ¢
THE BUSINESS OF WHY
In this extract from Find Your Why, money isn’t the only thing that drives people — a lot of it comes down to purpose, cause or belief SIMON SINEK, DAVID MEAD AND PETER DOCKER
ometimes a project that looks like an easy win for us turns into a disappointment, or even a disaster. More importantly, sometimes we, or a competitor, succeed brilliantly when all the usual business assumptions say we should have flopped. These outcomes can seem mysterious, but they’re not if looked at in a framework that starts with WHY. In his earlier book, Start with Why, Simon Sinek uses a model that he calls the Golden Circle to explain how legendary leaders such as Steve Jobs, Martin Luther King Junior and the Wright Brothers were able to achieve what others who were just as smart and hardworking were not. If you’re already familiar with the Golden Circle, this chapter will serve to remind you of the most important points. If the Golden Circle is new for you, what follows is the heart of the matter — and is essential preparation for your own search for WHY.
part of the picture, it’s not what inspires any one of us to get out of bed in the morning. And for the cynics out there who think they or others really do get out of bed for the money, the question we ask is, what is the reason they want the money. Is it for freedom? To travel? To provide a lifestyle for their kids that they didn’t have? To keep score and show they have done more than others? The point is, money isn’t the thing that drives people. WHY goes much deeper to understanding what motivates and inspires us. It is the purpose, cause or belief that drives every organisation and every person’s individual career. Why did you get out of bed this morning? And why should anyone care? When we meet new customers or clients, the first thing most of us tell them is what we do. Then we explain how we do it or how we are different. This, we think, will be enough to win their business, sway their point of view or convince them to take a particular action. The following pitch follows that template: We sell paper. We offer the
WHY GOES MUCH DEEPER TO UNDERSTANDING WHAT MOTIVATES AND INSPIRES US Every organisation — and every person’s career — operates on three levels, as shown in the illustration above: What we do, how we do it, and why we do it. We all know what we do: the products we sell, the services we offer or the jobs we do. Some of us know how we do it: the things that we think make us different or stand out from the crowd. But very few of us can clearly articulate why we do what we do. “Hold on,” you might say. “Let’s be honest here — aren’t most people working to earn money? That’s the obvious Why.” First, money is a result. Though it is a
highest quality product at the best possible price. Lower than any of our competitors. Wanna buy? This is a very rational pitch. It states clearly what the company does and attempts to persuade potential buyers to choose its product over others on the basis of features and benefits. Though this approach may work now and then, at best it will result in a few recurring transactions. As soon as the buyer finds a better deal, they will be gone, because the pitch doesn’t differentiate this specific vendor from other companies in any way that truly matters. Loyalty is not built on features and
benefits. Features and benefits do not inspire. Loyalty and longlasting relationships are based on something deeper. Let’s try the pitch again. Let’s start with WHY: What good is an idea if it can’t be shared? Our company was founded to help spread ideas. The more ideas are shared, the greater the likelihood those ideas will have an impact in the world. There are many ways to share ideas; one is the written word. That’s where we come in. We make paper for those words. We make paper for big ideas. Wanna buy? Totally different, right? Starting with WHY just made paper sound really good. And if it can do that for a commodity, imagine what it can do for a product that really can stand out. This pitch is not based on facts and figures, features and benefits. Those things have value but not first. Leading with WHY has a deeper, more emotional and ultimately more influential value. When we use the second pitch, we’re no longer talking about paper. We’re talking about who our company is and what we stand for. If your customers’ personal beliefs and values align with those expressed in your pitch — as in, they believe in the spread of ideas — then they are much more likely to want to do business with you, not just one time, but over and over and over again. In fact, they are more likely to stay loyal even if another vendor offers a better price. Companies that inspire and command trust and loyalty over the long-term are the ones that make us feel we’re accomplishing something bigger than just saving a buck. That feeling of alliance with something bigger is the reason we keep wearing the jersey of our hometown sports team even though they’ve missed the playoffs for 10 years and counting. It’s why some of us will always buy Apple products over other brands, even if Apple isn’t always the most affordable choice. Whether we like to admit it or not, we are not entirely rational
beings. If we were, no one would ever fall in love and no one would ever start a business. Faced with an over-whelming chance of failure, no rational person would ever take either of those risks. But we do. Every day. Because how we feel about something or someone is more powerful than what we think about it or them. There’s just one problem with feelings. They can be tremendously difficult to express in words. That’s the reason we so often resort to metaphors and analogies, like, “Our relationship feels like a train heading at high speed toward a rickety bridge,” or, “When I get to the office, I feel like a little kid in the playground again.” Even though communicating our feelings is hard, the payoff is big. When we align emotionally with our customers and clients, our connection is much stronger and more meaningful than any affiliation based on features and benefits. That’s what starting with WHY is all about. And here’s the best part: This is not our opinion. This whole concept of WHY is grounded in the tenets of biology of human decision-making. Find Your Why, by Simon Sinek with David Mead and Peter Docker, published by Penguin Random House Australia, at $35. It is available from Boffins Books in the Perth CBD. ¢
SEPT EMBER 2 017 BUSIN ESS PU L SE 3 7
GETTING BACK TO BASICS
People still want to touch, see or smell the discounts in today’s consumer world
CONSUMERS AREN’T JUST BUYING A PRODUCT WHEN INSTORE; THEY’RE BUYING AN EXPERIENCE
ustralian bricks and mortar stores are experiencing a resurgence in customers, according to a recent global survey. The State of Brick & Mortar 2017 report by Mood Media revealed Australians made 90 million more trips to physical stores in 2015/16 than the year prior. Of the 11,000 people surveyed globally, 1000 of those were from Australia. About 78 per cent of global consumers cited “the ability to touch, feel and try products” as their number one reason for shopping in bricks and mortar stores. The figure is similar in Australia at 76 per cent. Mood Media Australia Managing Director Steve Hughes says with modern technology taking over our everyday lives, consumers are craving sensorial experiences and still highly value the stimulation provided by seeing, hearing, touching or smelling, in stores. Of those surveyed more than 70 per cent under 45 would like to receive redeemable promotions on their mobile device while in store, 86 per cent of all surveyed believe music makes the shopping experience more enjoyable, and 64 per cent
38 B US I NE S S P U L S E SEPTEM BER 20 1 7
of millennials (25-34 year-olds in the research) would rather shop in-store than online if the right mood or atmosphere was created. “Consumers — particularly younger consumers — aren’t just buying a product when in-store; they’re buying an experience and their expectations for a positive, emotionally engaging experience are quite high,” Hughes says. “Shopping as a form of entertainment remains important to consumers. “The tangible, tactile nature of bricks and mortar is still viewed as a very real advantage, as is the desire for instant gratification. “Those businesses who deliver an elevated customer experience witness greater repeat visits, a greater number of recommendations and longer in-store dwell times.” Items or sizes being out of stock was the most common frustration across Australia (56 per cent), particularly among younger shoppers. Waiting in line represents the second most frustrating aspect of in-store shopping (55 per cent) with a too busy and hectic atmosphere following as the third top irritant (45 per cent). In nearly all instances across the world, those aged 18-34
rate the “atmosphere and experience” to be more important than any other age group, with one in three citing it as the top reason to choose in-store over shopping online. When it comes to making unplanned purchases, 62 per cent of Australian consumers across all ages cite that “discounts and promotions” most influence their impulse purchases, with men being slightly more sensitive to this leverage. The research also uncovers an increasing worldwide demand for interactive technology to be incorporated into the in-store experience, with more than half of people surveyed enthused by the possibility of being able to receive redeemable promotions on their mobile phones while in-store. When asked what type of stores they would like to receive redeemable mobile promotions from, Baby Boomers, Generation X (35-54 years old) and Millennials from most countries, including Australia, select supermarkets and grocery, while the youngest generation select clothing and footwear. On the other end of the scale, offers from banking/financial institutes represent the least interesting opportunities from all age groups. ¢
WINNERS are GRINNERS CCI congratulates its winning Members on their outstanding achievements
University of Western Australia
Magellan Sky Imaging Device
The best in four major subject areas
Curtinnovation Award finalist
The University of Western Australia has been ranked Australia’s best in four major subject areas in the latest results released by the Academic Ranking of World Universities. UWA outscored every other Australian institution in biological sciences and agricultural sciences, as well as marine/ocean engineering, and environmental science and engineering. UWA is in the world top 10 in two Engineering disciplines (Mining & Mineral and Marine/Ocean) and top 20 in both Agricultural Sciences and Environmental Science and Engineering. UWA is also in the world top 30 in both Ecology and Biological Sciences. UWA Vice-Chancellor Professor Dawn Freshwater said the results were a great achievement. “These results not only demonstrate that we are world leaders in teaching and research outcomes, they are a reflection of our committed and dedicated staff,” Professor Freshwater said. “This reinforces our strategy to attract the world’s best academics to UWA, with the aim to recruit 50 academic and research staff who want to join us on our mission of becoming a Top 50 University by 2050.” The Academic Ranking of World Universities is published by China’s Shanghai Jiao Tong University. It is recognised as one of the world’s most influential and widelyobserved university measures.
Australian back-up power manufacturer Magellan Power has been announced as a Curtinnovation Award Finalist for its collaborated “Sky Imaging” project. The joint project between Curtin University’s Department of Electrical and Computer Engineering and Magellan centered around the development of a device called Sky Eye which can predict the exact moment a passing cloud will cause a shadow on a solar installation. Passing clouds can cause big problems for weak grids laden with solar power, so much so that WA regional grid power supplier Horizon Power mandated that all new solar installations in regional WA using its grid be equipped with technology to smooth the transition of renewable energy, and give time for diesel generators to catch up. Other regional utilities around the country are now considering a similar mandate. The Australian designed and made Sky Eye works in the proactive manner through using the latest imagery and predictive algorithms together with machine learning software. It “sees” the approaching weather by tracking the cloud movement and precisely calculating the moment of impact of the cloud shadow on the solar panels, and therefore the solar generation. It then commands the solar inverter to reduce solar generation in a controlled manner, allowing the grid generator to ramp up and take the load again in accordance with guidelines of Horizon Power’s Generation Management specifications. The Magellan device was entered under the Climate-KIC classification, but the awards also recognise innovation in Health Sciences, Humanities, Business and Education, and Science and Engineering, among others. The awards are held to encourage the use of research in developing new products and services and to foster ties between the university and business.
THEY ARE A REFLECTION OF OUR COMMITTED AND DEDICATED STAFF
If you have a winning story about your business or organisation you’d like to share, email
SEP T EMBER 2 017 BUSIN ESS PU L SE 3 9
WHAT WA UNI’S CONTRIBUTE TO THE ECONOMY
IN 2016, THE UNIVERSITY HAD 23,153 STUDENTS AND 1783 STAFF
Curtin Curtin University started out as the Western Australian Institute of Technology (WAIT) which was established among the fire-ravaged Collier Pine Plantation in Bentley in the early 1960s. In 1986, the Institute officially became a university after the passing of an Act of Parliament. Curtin lends its name from former Prime Minister John Curtin, who held office during World War II. Curtin was also the first university of technology in the country. It is Perth’s biggest employer with more than 4000 employees and has a $1b turnover per annum on teaching, research, education and professional services. Its revenue in 2016 was $915.1 million.
UWA WA’s oldest university was established in 1911 and was the first free university in the British Empire. Former proprietor and editor of The West Australian, Sir John Winthrop Hackett, was the key person driving the need for a university in WA and when it was built he became the founding Chancellor. Due to Perth’s small economy which relied heavily on agriculture and mining, the founding professors were mainly from mining and engineering, geology, mathematics and physics, chemistry, history and economics and biology. Its revenue in 2016 was $939.9 million. The university employed 3559 staff and recorded 24,470 student enrolments.
ECU Edith Cowan University has had many iterations since it started out as Claremont Teachers’ College in 1902. While focusing mainly on education, in 1991 it was granted university status and was named after WA’s first female MP and the first woman elected to an Australian parliament. The university even bought Cowan’s house and reconstructed it on its Joondalup campus. Its WA Academy of Performing Arts arm has produced some of the country’s finest actors and actresses including Hugh Jackman, Tim Minchin and Lisa McCune. In 2016, it had 28,780 students and 1810 full-time staff. Its 4300 international students originate from more than 100 countries.
Murdoch Planning for WA’s second university began in the early 1970s and was opened in 1974. Named after revered writer, Sir Walter Murdoch, the university started teaching students in 1975 and during its orientation week builders were still putting the finishing touches on buildings. Murdoch’s veterinary school was the first of its kind in WA. Before that students wanting to undertake veterinary studies had to move east. To date, the school has produced 1287 veterinarians. More than 40 per cent of students are located on international campuses at Singapore and Dubai. In 2016, the university had 23,153 students and 1783 staff.
Notre Dame The University of Notre Dame Australia first enrolled students in 1992 after years acquiring and renovating buildings in Fremantle’s west end. It borrows its name from Notre Dame in the USA and is a private Catholic research university. The university initially specialised in a few small postgraduate education courses, but by 1994 had introduced a number of undergraduate degree courses. By 2000, it had 2000 students. In 2016, it had almost 13,000 students across its campuses in Fremantle, Sydney and Broome. Its undergraduate tuition rate is $47,422. Notre Dame doesn’t release financial details, but have recorded a 3.9 percent growth in revenue.
40 B US I NE S S P U L S E S EPTEM B ER 20 1 7
CC IM A 2 EM 0% BER DIS S G CO ET UN T BUSINESSPULSE
WINNERS RE GRINNERS
congratulates its award-winning members
moy and Vasse Felix
How WA’s 2015 Entrepreneur of the Year is using mobile phones to take the guesswork out of customer behaviour.
n 2009, Clinton House was drawn to a magazine article that suggested a person was far less likely to start a business after the age of 30. Life, it said, got too messy after 30, full of mounting responsibilities, debt and dwindling self-belief. The window of opportunity quietly shut. At the time, House was 29, working in the cinema industry and with a wife heavily pregnant with their first child. He nursed a long-held desire to steer his own ship and recognised the call to action. “The GFC had just hit and I thought if I can make it work in this environment, I can make it work at anytime,” he says. “I gave up my job, started my own company and just put everything on the line.” House’s company, Inhouse Group, was built around a product called ‘iinsights’ he had developed with the backing of family and friends. Iinsights is a web-based analytics platform that provides businesses with real-time data about visitor movements in and around a premises – where people are coming from, how many people walk past, how many people enter, peak periods of activity, how one day compares within another, how long a customer spends in a shop, how many people walk past, how often a customer returns and more. “It’s data that works on the back of the things you’re already trying within your business,” House explains. “It’s information that helps you see what’s working and what isn’t. It’s not a people-counting technology, but rather data that monitors trends and gives businesses concrete information that would previously have come down to guesswork. But while the back end is highly sophisticated and complicated, the front end – what businesses see and ultimately use – is very, very simple and accessible.” The data, which does not identify the person, is collected via a small plug-in sensor that detects mobile phone and bluetooth activity which is aggregated into a user-friendly dashboard. “The beauty of our product,” explains House, “is that we’re able to process all this data in a way that’s very easy to understand. The dashboard is simple, live and you can log in anytime. It’s not an absolute solution to any business problem on its own, but it does provide the data that can tell you whether the things you’re trying within your business – social media initiatives or advertising spend, for example – are actually making a difference.” Like most inventions, iinsights grew out of a new, perceived necessity. “Back in 2009/10, everyone in retail was scared of what was happening online,” House says. “Businesses were seeing online sales growth doubling and sometimes tripling each year, just exploding, and there was a panic that they weren’t in a position to compete with that. But when you look at why online sales were doing so well, a
DATA COMES OUT OF EVERY SINGLE THING THEY DO AND IT FUELS EXPERIMENTATION
Edith Cowan University
drops on China flights
1 8 B USINESS P ULSE FEBRUA RY 2016
large part of it is that they were able to fine-tune their data and see what was working and what wasn’t. Data comes out of every single thing they d and it fuels experimentation. Traditional businesses didn’t have that and so we sought to create meaningful data for them.” As well as business-specific data, iinsights has attracted the attention of local governments keen to access ‘macro’ data about the public use of large spaces and major events. In 2015 the City Of Perth used Inhouse to provide pedestrian data around a trial revamp of Museum Street, the results of which prompted a permanent street renovation and place-making program. Similar analytics have been provided for the Fringe Festival. “The goal now is to get as many sensors out there as possible, to scale a footprint, t get more companies on board and therefore more aggregated data,” House says. “For businesses, that means accessing real data on how they’re comparin to other businesses in the same area, or perhaps how their street compares with others.” From kitchen-table dreams in Mandurah six years ago to a Perth CBD office of 12 staff and industry accolades, Inhouse has experienced a whirlwind six years reflective of the IT sector. Not getting lost in the maelstrom, House says, has come down to focus. “For the first couple of years, we tried to do everything – inevitably you do. But then you have t stop and ask yourself: is this (particular service) lon term? It might be bringing you some money today but is that where you see your business? Or is there another part of your business you could invest mor in? It’s such a hard decision to make. There’s always a squeaky wheel, other noises distracting you. But when you do make the decision, and for me that decision was putting everything into iinsights and letting go of everything else, you just feel liberated You’re able to deliver a better product and a better experience.” ¢
CCI is offering Members a free, one-year trial of the visitor analytics platform, iinsights. Request your sensor before 1 March 2016 at cciwa.iinsights.co.
FE BRUARY 2 016 BUS I N ES S PUL S E 1
Top 200 Most International University
outhern Airlines has selected two Margaret River wines as m on-board beverages for all its return direct flights between nd Australia/New Zealand, including the Perth-Guangzhou ath. oy Estate Classic White and Vasse Felix Sauvignon Blanc n will be poured on-board from next month and are the first es to be featured in the carrier’s inflight offering. new business development facilitated by Wines of Western a and the Margaret River Wine Association on behalf of outhern Airlines and WA wine producers reiterates the ant opportunities China presents as a key export market tern Australian wines,” said Wines of Western Australia CEO rgensen. Margaret River Wine Association has been exploring a range of s development opportunities for producers to break into and eir distribution in China.” oy Estate General Manager Cameron Rhodes said the new nity was invaluable. Chinese market represents an enormous opportunity for alian wine producers and the fact that Chinese travellers able to enjoy our wine whilst flying on China Southern will omote Australian wines and Australian quality produce even Cameron said. Felix was named Winery of the Year, White Wine of the Year Wine of the Year Runner Up in The West Australian Wine 016 by WA Critic Ray Jordan. oy Estate, Vasse Felix and China Southern Airlines are all rs of CCI.
ECU has been named in the Times Higher Education (THE) top 200 list of the Most International Universities in the world. The rankings assess universities on the proportion of international staff, students and international collaborators on published research. The announcement comes after a stellar year for the university on the world stage. In October, ECU was named in the Times Higher Education World University Rankings, placing it in the top five per cent of universities worldwide. ECU also appeared at number 90 in the influential THE 100 Under 50 2015 global rankings for the top universities under 50 years of age. ECU Vice-Chancellor Professor Steve Chapman welcomed the university’s recognition. “ECU is a modern, international institution that is developing rapidly and it is a great pleasure to be recognised for that,” Professor Chapman said. “With our three campuses throughout Western Australia, ECU already has strong connections with our local communities. But this ranking shows we are also globally-focused, attracting world-class people to ECU and providing exciting international opportunities for our students and researchers. “We have more than 65 international partnerships across 27 countries and we will be increasing these opportunities in the future.”
ECU IS A MODERN, INTERNATIONAL INSTITUTION
TALK DIRECTLY TO WA’S SMALL BUSINESS SECTOR New Zealand
have a winning story you’d like to share, email
In the battle between Australia and New Zealand, Australia ranks a whopping 117th in wage flexibility, compared to New Zealand, which is ranked 23rd. The big difference between Australia and New Zealand is the award system. In 1991, the New Zealand Government made significant changes to its industrial relations system, which included abolishing their system of national awards. Employees are now covered by an individual contract or union collective agreement, underpinned by a minimum wage and statutory minimum entitlements, similar to our National Employment Standards. New Zealand employers can establish terms and conditions of employment appropriate to their business and adapt to market changes. As a result, penalty rates generally no longer apply for weekend work across the New Zealand retail and hospitality industry, where businesses can be responsive to demand and opener longer providing more employment opportunities In Australia, weekend penalty rates have meant many small retail and hospitality businesses don’t operate on Sundays or public holidays or if they do it’s with fewer staff.
MARCH 2016 BUSINESS PULSE 35
AUSTRALIA VERSUS THE WORLD Australia is falling behind other countries on important measures because of our outdated industrial relations system
After making changes to its unfair dismissal system, the United Kingdom now ranks 20th for flexibility in hiring and firing practice compared to Australia, ranked 126th. Australia’s unfair dismissal system is plagued by ‘give-it-a-go claims’ in which terminated employees make speculative claims seeking compensation. The low cost for employees to make a claim versus the high cost to employers in defending them encourages businesses to make a commercial decision to settle a claim and pay ‘go away’ money. In Australia, it costs less than $70 to make an unfair dismissal claim with many employees choosing to represent themselves. However, for employers the cost of defending a claim often exceeds $20,000. The UK has addressed this problem by introducing a £250 [$A500] fee to make an unfair dismissal claim, with an additional £950 [$A1900] fee for the matter to be taken to hearing. This has resulted in the number of applications falling from more than 191,000 claims per year to a little over 61,000. The high fees discourage speculative claims but there has been criticism they also discourage genuine claims. So the UK established a free, alternative dispute resolution system which has settled 63 per cent of disputes, with just 15 per cent settled by way of a monetary payment.
IN AUSTRALIA, IT COSTS LESS THAN $70 TO MAKE AN UNFAIR DISMISSAL CLAIM
A PAUL MOSS Manager Industrial Relations and Safety Policy
ustralians enjoy a good international rivalry. The oldest started in 1882 when the Australian cricket team beat England at the Oval and The Sporting Times published an obituary for the death of English cricket – and the Ashes was born. But in the area of industrial relations, Australia is finding itself outplayed and outclassed by other countries that have adopted IR reforms that have dramatically improved conditions for business. In the recent World Economic Forum’s Global Competitive Report, Australia ranked 36 out of 140 for overall labour market efficiency — well behind comparable countries, such as the United Kingdom (5th), New Zealand (6th) and Canada (7th). There is a lot that Australia can learn from other developed countries in establishing an industrial relations system that promotes workplace flexibility.
In Canada, industrial action is the option of last resort and that’s why they rank 26th in the world for cooperation in labour employer relations, compared to Australia, which ranks 70th. Australia’s industrial relations system encourages disputes. With very few legal barriers, it is easier for unions to threaten industrial action to promote their claims than undertake genuine negotiations. In Canada, like Australia, industrial action can lawfully be taken as part of enterprise bargaining, but the requirements are far more extensive. Before workers can strike, Canadian employers and unions are required to undertake significant formal conciliation to help the parties reach agreement. Industrial action can only take place if the Minister for Labour is satisfied that further third-party assistance is of no use and following a majority vote of employees and a further 21-day cooling off period. These restrictions encourage greater levels of collaboration and genuine negotiations in order to secure an agreement. In Australia, the threat of industrial action is frequently raised early in the bargaining process, setting the tone for the rest of the negotiations. The Federal Government has recognised the need for industrial relations reform, the challenge now is to establish a roadmap that will ensure our labour market is competitive with other developed countries. Join Minister for Employment, Hon Senator Michaelia Cash at CCI’s industrial relation conference [on 7 April] to hear more about the industrial relations challenges facing Australia. ¢
2 2 BU S INES S PU LS E MA RC H 2 016
Build your brand with BP. Contact Paula Connell on: (08) 9365 7544 or email firstname.lastname@example.org
MA RC H 20 1 6 B US I NES S PUL S E 2 3
SEPT EMBER 2 017 BUSIN ES S PU L SE 4 1
Super and your business
When it comes to managing your employeesâ€™ super, you have an important part to play. By registering with AustralianSuper, Australiaâ€™s most trusted fund*, we can help you take care of your super obligations. Make us your default fund today australiansuper.com/SuperForEmployees
*Readers Digest Most Trusted Brand 2017 - Superannuation Before you decide if AustralianSuper is right for you, read the Product Disclosure Document available at australiansuper.com or by calling 1300 300 273. Investment returns are not guaranteed. Past performance is not a reliable indicator of future returns. AustralianSuper Pty Ltd ABN 94 006 457987,AFSL 233788, the Trustee of AustralianSuper ABN 65 714394 898.
42 B US I NE S S P U L S E S EPTEM BER 20 1 7
Published on Aug 31, 2017
This month’s Business Pulse delves into “The Skill Set” — what skills the workforce will need for the future, and the importance of training...