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East Tamaki - a great place to do business I S S U E 6 2 0 1 3 U P D AT I N G A N D I N F O R M I N G T H E G R E AT E R E A S T TA M A K I B U S I N E S S C O M M U N I T Y

In this issue 02 Meet your Committee

04 Waste

Minimisation

06 Emergency Response 08 The Big Leagues 10 Recent events photos 12 Giving customers what they want

15 Cashflow

Management

16 Know your neighbour

17 Protecting your assets

18 New facilities for Highbrook 20 Understanding seismic ratings

Upcoming events 17 October, 2013 Technology Bites: On the Ground or Up in the Cloud? 24 October, 2013 Waste Minimisation Forum 30 October, 2013 Business Owners Forum: Sales and Marketing 14 November, 2013 Management Bites: Holidays and Leave 19 November, 2013 Business Showcase: Safety ’n Action 21 November, 2013 Technology Bites 27 November, 2013 Breakfast 3 December, 2013 Management Bites: Building a Performance Culture

BRINGING IDEAS TO LIFE Two-thirds of their income may come from export markets, but Seedling is firmly an East Tamaki business. In this globalised business environment it isn’t unusual for businesses to base different parts of their operation in different parts of the city, country or world. Not Seedling. Every part of their business is based at their Lady Ruby Drive headquarters and it seems to be working for them. Named as a finalist in the New Zealand International Business Awards in 2013, Seedling creates inspirational products for children aged 3 through to their tweens. And that’s not just marketing speak for toys; founder and CEO Phoebe Hayman describes what they do as ‘DIY for kids’. Seedling craft kits encourage children to get creative. It all started when, as a mother of a preschooler, Hayman was disappointed by the toys available. They were full of lights and sounds and usually made of plastic that was not intended to last. “I just didn’t understand

why kids were given such low-quality tools. Why couldn’t we give children real tools?” She created a small number of kits at home at the end of 2006, intending them to be more engaging for children. They were popular enough to start a company in early 2007 and now the company creates a range of more than 350 products that cross a wide range of areas from sewing to art, games to adventure. “These aren’t paint by numbers kits,” Hayman explains. “They’re curious, imaginative toys that allow kids to be really creative and bring their own ideas to life. From a parent’s perspective, if they want something different for their kids, they don’t have to spend the extra time coming up with a creative concept for their children and then finding the tools to make it.” (continued on page 3…)

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Annual General Meeting 2013 GETBA held its Annual General Meeting (AGM) on Thursday 3 October. The 2012– 2013 Annual Report and Audited Financial Statements were presented and adopted, as were the 2013–2014 Business Plan and Budget and Indicative Budget for 2014–2015. Three special resolutions were also adopted making changes to the Constitution introducing proxy voting for general meetings, postal voting for special resolutions, and indemnifying Executive Committee members. Nominations for the Committee closed on 20 September and as there were an equal number of nominations for positions, those nominated were therefore deemed to be elected unopposed. Meet your committee members below.  For the minutes and related AGM documentation please go to www.getba.org.nz/agm

MEET YOUR COMMITTEE

Richard Poole CHAIRPERSON

I am Managing Director of MiTek NZ Ltd, a global company employing 70 staff, and world leader on the manufacture of fasteners, engineering, and software for the prefabricated roof truss and wall frame industry. I have worked in East Tamaki for over 30 years, have been a committee member since 2008, and am into my second term as Chair. I am also on the Board of the Building Industry Federation of New Zealand.

Henry Jansen

Liz Groenewegen

Phil Clarke

SECRETARY

TREASURER

I have been a partner in the law firm of Wynyard Wood for 17 years, am a Notary Public and a director of numerous companies. I have worked in the Wynyard Wood office in East Tamaki for the last 19 years. In March 2013 we moved to new offices in Highbrook. Len Brown (Mayor of Auckland City) and I founded GETBA in 1993 and I have been the GETBA secretary since then.

I am a Chartered Accountant and joined RSM Prince in 2002. I have been based at the Highbrook branch since 2005 and became the first female Partner of the firm in January 2008. With my husband Jaap, I own Foodwise Limited, a local food manufacturing business employing 16 staff. We also own the commercial premises the business operates from, so I am also a property owner in East Tamaki.

I am Managing Director of A Touch of Italy Limited, an importer, distributor and manufacturer of Italian food, wine and confectionery. My passion for Italian product stemmed from the car industry where I was Marketing Manager for the importer of Fiat, Lancia and Ferrari automobiles. I have been a member of GETBA for ten years and joined the committee six years ago.

David Lindsay

Brenda Hill

Kim Luxton

I am the designated representative for Broady’s NZ Ltd rather than my own Accounting Practice which has moved just one street outside GETBA’s boundaries. I have been in business for 21 years in East Tamaki, and am a former Treasurer of GETBA (holding this role for four years). I can identify with many GETBA members and their needs since they face similar issues to many smaller businesses that I have worked with.

I am co-owner of Amare Safety Ltd which I started with my husband John in 2005. Specialising in supplying personal protective equipment, safety supplies, environmental protection and uniforms locally and nationally, we employ 13 staff between Amare Safety in East Tamaki and On Show Embroidery based in Takanini. I was elected to the Committee in September 2012.

I am General Manager and Director of Hydestor Manufacturing Ltd, a 100% New Zealand-owned company, employing more than 50 people in the development, manufacture, installation and export of steel shelving systems for the local and export markets, with branches in Christchurch, Wellington and Rotorua. I was appointed to the Committee in March 2013 following the resignation of Tony Coombe.

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countrymen here in New Zealand. “Kiwis have absolutely no respect for authority, and they’re not that worried about rules. They get out and they change things.” What does he mean? One of the many examples he shared with GETBA members involves being approached to set up the Department of Clinical Pharmacology at the University of Auckland. “If I’d been in the UK I would have said no because I didn’t even know where to start, but because I’d been in New Zealand for a year and a half I said yes. And when Douglas Pharmaceuticals approached me to be their technical director, instead of saying no because I didn’t have the experience, I said yes.”

Sir Ray Avery

From street kid to Knight The boat race may not have gone our way on the day, but GETBA members at the latest breakfast event were far more interested in hearing from Sir Ray Avery, an adopted New Zealander who has experienced more in his life so far, than many people could ever dream of. Sir Ray Avery has, by his count, around 4800 days left to live. He’s not sick, he’s just very aware that we’re all born with about 30,000 days to live and he wants to make every one of them count. It’s a strategy that seems to be working for him: pharmaceutical scientist, entrepreneur and inventor; New Zealander of the Year 2010; Blake Medal winner 2010; voted most trusted New Zealander in 2011; knighted in 2011.

A key part of his strategy is also a proven business strategy – reverse engineering. “Business people can be very smart about running their business but we don’t often put that into practice in real life. If you want to cruise around the Pacific at 65 you need to start planning now to make that a possibility.” A second prong to his strategy is to learn like he’s going to live forever. This love of learning new things was born of unlikely circumstances – he was homeless and living under a railway bridge in England at the time. The library represented somewhere warm and sheltered; the fact that it also housed Encyclopedia Britannicas was a bonus. An illness that put him in hospital and back in front of a social worker was the first step to a world-class education and onwards to a career in science. He puts many of his biggest achievements, however, down to what he’s learned from his adopted

BRINGING IDEAS TO LIFE (…continuing from page 1) It turns out that New Zealand parents weren’t the only ones looking for more engaging toys for their kids. Seedling now exports to 20 countries and their biggest markets are Australia, the US and the UK followed by a number of European countries and Asia. And every single toy is manufactured here in East Tamaki, something that, in itself, gives them point of difference.

“We’ve been in the area for five years and we’re now in our second property. For us it’s about location, especially the proximity to the motorway, which gives us easy access to the airport and all areas of Auckland. There are great facilities for our staff, as well as for the business. There’s a real community feel in terms of the business community and we enjoy being part of it.”

Douglas Pharmaceuticals is now the only New Zealand-based pharmaceutical company, something that Sir Ray puts largely down to their early business approach. “Our competitors were going around with glossy brochures showing all their products, whereas we were asking our customers what they wanted.” It wasn’t the last time the Kiwi tendency to be disruptive would have an influence: as technical adviser for the Fred Hollows Foundation, he designed and commissioned intraocular Lens Laboratories in Eritrea and Nepal which produce lenses that are expected to bring sight to 30 million people by 2020; as founder and chief executive of awardwinning development agency Medicine Mondiale he has developed infant incubators, IV flow controllers and pre-digested protein formulations to combat child nutrition.  www.medicinemondiale.org

I found home the moment I stepped off the plane in New Zealand. Here was a country that was like me. Impossible is just the starting point for Kiwis. Hayman says the process involved in entering the New Zealand International Business Awards was a great opportunity to really have a look at who they are and what they’re doing. “It’s a good snapshot,” she says. “We have a great plan around international business because that’s our future. We are flexible and adaptable, our growth has been fantastic and it relies on a number of different markets rather than just one.”  www.seedling.co.nz

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WASTE MINIMISATION

Waste not, want not GETBA is looking for businesses that would like to start or increase their recycling to take part in a feasibility study around creating a waste minimisation programme for the area. Waste is unavoidable in business and as the largest industrial area in New Zealand, Greater East Tamaki plays its own part in creating and consuming. For small to medium enterprises looking to improve their overall performance it can be easy to overlook waste, paying instead for an all-purpose skip that is regularly taken away for someone else to deal with. There is a common misconception that sorting and recycling all of your waste, and putting in place waste minimisation structures and practices costs more money than not doing it, and in some cases this may be true, however, the vast majority (if not all) of businesses that have done it would tell you the opposite. In most cases an effective Waste Minimisation Plan will save you money.

In most cases an effective waste minimisation plan will save you money.

In a recently conducted survey, we asked businesses how they were dealing with their waste, including if they were recycling and if they had any waste materials they would like to recycle, but didn’t know how to. The results showed that 90 per cent of respondents are actively recycling, and nearly half of those were keen to recycle more. This shows a very healthy attitude towards recycling in East Tamaki and bodes well for our continual support in this area.

Waste Minimisation Forum

24 OCTOBER

We will be holding a panel-based forum so members can learn from the experiences of other businesses. The panel will include a subject specialist and two local businesses (one large and one small) that have waste minimisation plans and are actively recycling – reducing the waste sent to landfill and making bottom line savings. Panelists • Dave Cuff, Group Facilities Manager, and Marty Matenga, Facilities Manager, Fisher and Paykel Healthcare • Stephen Bean, Director, Damen Office Furniture • Sunshine Yates, Director, Waste Not Consulting Facilitator James Griffin, National Network Manager, Sustainable Business Network Come along, be better informed and join in the discussion. What Waste Minimisation Forum

We all have a responsibility to consider our impact on the environment, as businesses and individuals. We should also be taking the necessary steps to make every business, regardless of size, more sustainable, because it affects all of us.

When 4.30pm-6.30pm, 24 October 2013

We have enclosed a useful flyer that can be used to encourage your staff to recycle, or as a guide for where to find recycling facilities.

To register email admin@getba.org.nz or phone us on 09 273 6274

Where Waipuna Conference Suites, Highbrook Light refreshments will be provided

GETBA are conducting a feasibility study to assess the potential for a Waste Minimisation Programme in East Tamaki. Part of this will involve finding businesses that would like to start recycling, or would like to increase the amount they’re already recycling. Although there will always be some materials that can’t be recycled, most nonorganic waste items can either be re-used or recycled, and we would like to facilitate that by acting as a conduit between businesses and the right resources. We would also like to create a Waste Minimisation Network Group, perhaps through LinkedIn, which would be an open forum for businesses to share ideas, ask for advice, and communicate with other interested East Tamaki businesses.

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 If you would like to start recycling, find out where to recycle difficult materials, or would like to discuss Waste Minimisation with us in general, please contact Troy Greenfield at project@getba.org.nz, or 273 6274, or go to the Waste Minimisation resource page on our website www.getba.org.nz/waste-minimisation

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What started with recycling has now extended to an overall eco-management system that contributes to saving the planet and to the company’s bottom line. A quick look at Damen Office Furniture’s website shows a proudly displayed Eco Warranty logo, one of the benefits of the company’s recent accreditation under an independent environmental management system that encompasses every part of the business. It all started, however, with the desire to recycle. “We wanted to be good community people,” explains Damen Production Manager Rob Ushaw. “I’m a grandfather and I want my kids to have a perfect world. We need to start protecting it now.” The system covers everything from having a set procedure in place to deal with any kind of spill through to waste minimisation and reducing energy use, and it’s already working. Damen used to have a 5m3 waste bin that was emptied weekly, but that has been replaced by a bin half the size that is

emptied fortnightly. Ushaw says that most of the time they’re lucky if the bottom of the bin is even covered. As with any change to the way a business works, making the new approach stick relied on two things: staff buy-in and making the new way of doing things the norm. The first turned out to be easier than expected. Staff have embraced the approach and the motivation behind it. As part of the environmental management system, Nitesh Dutt is the company’s ‘environmental champion’, taking on the responsibility for helping to explain and implement new procedures. “You need one staff member who’s in charge and who has been involved with the whole process from the very start. We’ve applied these changes to every part of the business, from the managing director down, and that’s visible.” Waste is now separated into non-recyclable waste and the different types of recyclable waste, which is then put into a number of giant plastic bags on site. A search for suppliers that could deal with the different recyclables found that they could deliver all of them to the same depot.

Ushaw says it took about three to four weeks to make the new system the norm. Part of this was monitoring the recycling area to ensure everyone was following the new procedures and to check if more training was needed. “It’s actually running really smoothly, and we never really encountered any issues. It’s just normal now.” While cost saving was never the motivation behind the changes, Ushaw says it has been a welcome side effect. “The cost benefits are there and we believe it’s worth it. It has been for us. Recycling waste doesn’t take us a lot of time and it’s free to get rid of; there are just the transport costs.” Ushaw’s advice for any business thinking about making similar changes? Just do it. “Think about what we’re leaving behind for our children. If it can be successful for us, it can be successful for everybody, it just takes a little bit of time.”

 www.officefurniture.co.nz

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Emergency ready! GETBA has an Emergency Response Plan ready to be activated in the event of an emergency or disaster in the East Tamaki commercial industrial precinct. GETBA will be able to assist Civil Defence and Emergency Services in the local response by warning and informing businesses, and with setting up an evacuation centre and helping vulnerable businesses and employees get to safety if required.

Tabletop exercise tests the plan A multi-agency tabletop exercise was held in late August to assess the preparedness of the GETBA Emergency Response Plan. GETBA’s Emergency Response Group (ERG – see below) and participants from the Fire Service, Police, St John Ambulance and Auckland Council Civil

Defence and Emergency Management (CDEM) faced a man-made disaster scenario involving a chemical fire. The ERG activated the Plan and responded to developments as they unfolded. “While the ERG had done some basic Co-ordinated Incident Management System (CIMS) training, it was really useful for us to work through an actual scenario and see the way the emergency services would operate in a real incident, and how we would contribute,” ERG member David Baker says. All parties agreed that it was very worthwhile to have the opportunity to meet and build relationships ahead of an actual event. The ERG has since held a de-brief meeting to consider learnings from the exercise.

The GETBA Emergency Response Group Jane Tongatule, General Manager, GETBA Kevin McAfee, Facilities Manager, Farmers Trading Company David Baker, Site Facilities and Services Manager, Fisher and Paykel Appliances Dave Cuff, Group Facilities Manager, Fisher & Paykel Healthcare Rochelle Reulu, Building Manager, Goodman Carlo Bussen, Chief Information Officer, NALCO Daniel Coleman, Compliance Manager, Transpacific Technical Services

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Does your business have a Business Continuity Plan? Massey University research shows 43% of SMEs (Small and Medium-Sized Enterprises) they surveyed had experienced a crisis in the past five years and less than 10 per cent have a business continuity or crisis plan. Would your business be able to remain operational during an unexpected event?  Head to www.resilient business.co.nz for useful information and resources, including a 5-minute self-assessment tool, case studies, checklists and templates that you can download free of charge so you can plan for your own business continuity.

DOES YOUR BUSINESS HAVE A SURVIVAL KIT? Civil Defence recommends your survival kit enables your business to survive three days without assistance. • water (3 litres per person per day) • canned non-perishable foods • torch and radio (with spare batteries) • toilet paper, plastic bags and bucket • first aid kit and essential medicines • bbq or other means of cooking • face and dust masks


Did you know...

THE NZ FIRE SERVICE HELPS BUSINESSES WITH: Your evacuation scheme

Hardening the target

If the building you are in is a “relevant building”, then an evacuation scheme approved by the Fire Service is required for your building to be compliant – and occupied. The owner of the building is responsible for putting this in place and for ensuring things such as trial evacuations (aka fire drills) are held regularly.

Rubbish skips and recycling bins present a welcome target for fire setters, vandals and arsonists and the number of fires we attend at business premises involving these things increases during the warmer months. It is quite easy to reduce the risk of fire at your business by ensuring these bins are emptied regularly, especially over weekends or holidays.

Education for your employees on home fire safety Providing your employees with this in the workplace can not only demonstrate that you are a responsible employer, but can also improve your employees’ safe practices at work. If your employees are safe at home, they can also be safe at work.

Minimising false alarms

 The NZ Fire Service can assist you and your businesses with these areas of fire safety and many more. You can find out more about business and home fire safety on www.fire.org.nz or by contacting the Counties-Manukau Fire Risk Management department on 09 262 0868, or emailing phil.faidley@fire.org.nz

Unnecessary false fire alarms cost businesses time and money, plus they can take fire engines away from where they are really needed. If a business has three or more false alarm calls in a 12-month period, the Fire Service can issue an invoice for attendance at the third call and each subsequent one. These charges can be reviewed and in some cases, where there is a genuine effort to reduce false alarms, waived.

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TRANSPORT

Big

The Leagues

The Waterview Connection project involves big numbers, especially when it comes to the amount of concrete components it requires, and producing those components is Wilson Tunnelling’s job. To do this, they’ll be utilising their brand new East Tamaki factory. Many businesses provide warranties on their products, but there can’t be many that are required to provide a 100-year warranty on their work. That’s one of the challenges facing Wilson Tunnelling when it comes to the Waterview Connection project. The East Tamaki-based company has been involved in the project since the very beginning and will be producing the more than 24,000 concrete segments that are needed to line the motorway tunnels. All of them will be produced at a brand new, 6000m2 precast concrete manufacturing facility in East Tamaki, using a lot of locally produced aggregate and cement. Since 2009/10, the project has increased the company’s workforce from 90 to around 200, 70 of whom have been employed specifically to run the new factory and have been drawn almost exclusively from the local area. “We’ve been in East Tamaki for about 10 years now,” says Wilson Group business manager Dan Wilson. “So being able to employ local people is quite a big driver for the business.”

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Waterview’s twin tunnels are the key feature of the new six-lane, 5km motorway being built to connect the southwestern and northwestern motorways, completing Auckland’s 48km-long Western Ring Route. It has been deemed one of the government’s seven ‘Roads of National Significance’. The lining of these tunnels comprises 2414, 14m-diameter rings of concrete which each include ten individual segments. Production of these rings began in August and it’s expected that 180 of them will be completed by the time ‘Alice’ – the project’s tunnel boring machine – is launched later this year. A new ring will be installed after every two metres is excavated. It is a huge undertaking and Wilson says the international exposure that Wilson Tunnelling is getting is a major plus. “For a private company of medium size to be involved with large multi national companies and international groups... it’s fantastic for us.” The precast factory is the largest of its kind in Australasia and includes some of

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the most up-to-date concrete batching and moulding equipment in the world. ‘Alice’ is the ninth-biggest tunnel boring machine in the world. The factory will also manufacture 2400 culvert units to go beneath the motorway that will run through the tunnels and 279, 1500mm deep bridge beams for new ramps at the Great North Road motorway interchange on State Highway 16. The Waterview Connection project is expected to be completed in 2017.  www.wilsongroup.co.nz

BY THE NUMBERS 2.4km twin Waterview tunnels 2414 concrete lining rings 14m ring diameter 24,040 tunnel lining segments 93,000m3 of concrete needed 70 new jobs created 2406 culvert units to be manufactured


Safety relies on understanding A New Zealand study suggests that the majority of employees are at risk because they don’t fully understand their workplace’s health and safety information, documentation and paperwork. Percy notes that, although supervisors’ literacy levels are generally higher than those of employees, 19 per cent of supervisors also struggle to read and complete health and safety information and paperwork. This affects their ability to convey important health and safety information to their teams. The study clearly shows that many firms have modelled their in-house health and safety documents on the formal language provided in official government documents. Reducing New Zealand’s workplace accident and death rates relies on making documentation easier to understand. “Regulators and employers therefore need to review their health and safety information and communication, and make health and safety documents more relevant for the significant number of employees who lack the extensive formal technical vocabulary needed for health and safety compliance,” Percy says.

Undertaken by adult literacy and communication specialists Workbase, the study of 466 employees in 23 manufacturing, warehousing, hospitality and other workplaces involved showing employees a sample of their company’s core health and safety documents and assessing how much of the content they understood. The majority (65 per cent overall and 70 per cent in the manufacturing sector) did not fully understand the written information about their employers’ health and safety policies and rules, hazard information and safety procedures. Eighty per cent of the employees could not accurately complete a hazard report form. The study also found that many of the companies’ health and safety documents were very complex and used dense, indirect and specialist language that was unfamiliar to many employees in the study. “The Ministry of Business Innovation and Employment’s recent Independent Taskforce Report on Workplace Health and Safety identified low literacy and poor

communication skills as being an issue, particularly in higher risk workplaces, and our study backs this up,” says Workbase Chief Executive Katherine Percy. More than 200,000 New Zealanders are seriously harmed and more than 100 are killed in workplace accidents every year and these findings have significant implications for regulators and employers trying to keep people safer while at work, as outlined in the recently released WorkingSafer blueprint. The blueprint identifies worker participation and engagement as being essential to strong safety performance but notes that the levels of worker engagement in workplace health and safety issues are inconsistent. “The study suggests that employers could be doing more to ensure that employees understand the specific health and safety processes and policies that they are expected to follow,” Percy says. “It is difficult, if not impossible, to engage employees in health and safety if they can’t understand the information they are being given.”

While the Government’s new WorkSafe agency is a step in the right direction, Percy agrees with calls by the Employers and Manufacturers Association, among others, for training to be given a higher priority. “The proposed legislative framework includes a worker participation model that aims to facilitate better levels of participation and help workers to have the knowledge and accountability to keep their colleagues safe,” Percy says. “Achieving this will require regulators and employers to ensure their health and safety documents are much easier to understand. More resource also needs to be put into developing training that develops employees’ health and safety-related vocabulary, literacy, knowledge and skills.”  For more information and a copy of the research go to www.workbase.org.nz

Government funding is also available for workplace literacy training programmes. Find out more, including case studies, at www.skillshighway.govt.nz/ and www.skillshighway.govt.nz/fundingassistance

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PROPERTY OWNERS FORUM

BUSINESS OWNERS FORUM Photographs supplied by Mike Farrelly, www.farrelly.co.nz; Grant Southam, grant@southam.co.nz and Rob McEldowney, rob.mceldowney@gmail.com

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BREAKFAST WITH SIR RAY AVERY WAIPUNA CONFERENCE SUITES AND QUEST HIGHBROOK SHOWCASE

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TECHNOLOGY

Giving customers what they want Customers are no longer looking for one supplier that gives them everything. They want to be able to buy only the services and products they need. Heather Grace explains why unbundling is necessary in your business. Twenty years ago everyone was striving to be the ‘one-stop shop’ because that was what our customers seemed to want. That was then. Today we live in a different world. There has been a social shift – now it’s all about unbundling. It’s not a new concept but the surprising thing is that it has taken so long for it to catch on. Think about the last time you purchased a whole album on CD, just because you liked one song on the album. We all used to do that, and were often disappointed with the rest of the tracks on the CD so it drifted to the bottom of the unplayed pile. Most of us wouldn’t dream of doing that now, we would simply download the song we like for $1.29 or so. Another example is the software we use every day. Remember buying the whole MS Office Suite because you wanted Word and Excel? Now it’s a matter of downloading only the “apps” you want for a fraction of the price. ‘User pays’ means paying for what you use but, more importantly, now it means only paying for the things you want to use. Recruitment is an area that has had to quickly learn how to unbundle their services. Many businesses are opting for the pick-n-mix approach of recruitment services rather than paying for the ‘end-to end’ recruitment package. Every business has different needs. Business training is also experiencing a shift. Generic public courses have some great content, but only ten per cent of what is taught might be relevant to each business in the room and their way of operating. Customised in-house training uses the pick-n-mix approach to create training courses that are 100 per cent relevant to that particular business, which is much better value in terms of course fees and in the time spent away from the day-to-day needs of the business.

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So how does this trend of unbundling impact your business? And what are you doing about it? This trend is not just a fad. Take a critical look at your business and see what needs to be unbundled. Ask your customers what they want. Ask your prospective customers what they dream of. Talk to your sales representatives, talk to your customer services team, talk to your technical service gurus. Have a brainstorming session with the whole team. What feedback are they getting from the market? You can blame the GFC, or global warming or Generation X, Y or Z. It doesn’t matter what has caused this trend, what matters is that it is gaining momentum. The marketplace now expects unbundling, so ignore this trend at your peril.

‘User pays’ means paying for what you use but, more importantly, now it means only paying for the things you want to use.

 Success With Grace is home of the TechBiz Success Academy, specialising in helping technology based businesses grow. For information about TechBiz training and coaching please contact Heather Grace directly www.successwithgrace.com

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Introducing Technology Bites The much anticipated Technology Bites series has now been finalised and will start with the first two workshops on October 17 and November 21. Make sure you register now. First up is ‘On the ground, or up in the cloud’, a workshop that will tackle your questions about what your server does for you and what your requirements really are. It will cover a number of topics, including: • • • • • •

Access control Application hosting Email and calendar sharing What are the options moving forward Cloud only Hosted remote desktop

• Hybrid with an on-premise server • What are the key factors in your decision • Current investment (age of existing systems, applications you use) • Mobility (how and where do you need to access information) Our presenter for this workshop will be Richard Cheeseman, founder and managing director of Lume, a company that provides independent IT and telecommunications advice to businesses. Cheeseman has experience with IT infrastructure projects, software development and implementation, strategic consulting, and designing and implementing telecommunications solutions. He understands not only what the options are, but also what businesses are looking for and he can put it all into language that business owners can understand.

17 OCTOBER What Technology Bites: On the ground or up in the cloud When 7.30am-9am, Thursday 17 October Where Waipuna Conference Suites, Highbrook Light refreshments will be served. To register email admin@getba.org.nz or phone us on 09 273 6274

The second workshop will follow on from this one and will touch on the world of applications, smart devices and the mobility of technology within your business. Numbers are limited so make sure you book your spot.

GETTING AUCKLAND DIGITAL This Labour Weekend offers you the chance to get a greater understanding of and access to the potential for innovation provided by ultrafast broadband at the Digital Innovation Showcase. The event has been organised by Auckland Council’s Digital Leadership Forum (DLF) which brings together representatives from a range of stakeholders in a collaborative effort to realise the benefits of the government’s ultrafast broadband rollout. GETBA is a part of this forum, representing local businesses. The Showcase focuses on youth, families and small to medium sized busineses in Auckland and will be held at the Viaduct Events Centre. A broad range of organisations have stepped up to support the programme, including central and local government, infrastructure providers, technology companies, software and app developers, education providers and community organisations.

Save the date: 26-28 OCTOBER

What Digital Innovation Showcase – Getting Aucklanders digital When Labour Weekend, Saturday 26 to Monday 28 October Where Viaduct Events Centre, Auckland Central

Changes to GETBA online GETBA’s website not only looks different, it’s now easier to navigate and access information and resources, plus it boasts a number of new features. The new events calendar on the home page makes it easy to find out what’s going on and soon you’ll be able to register and pay for events online. The website also provides links to ‘look before you leave’ traffic camera footage, as well as a number of new business resources and a link to GETBA’s new LinkedIn company page. Just click on the LinkedIn logo and follow us.

to do so. Check it online and let us know if you would like to make any changes.

In keeping with our ‘Keep it Local’ ethos, tell us your news and we may be able to publish it on our local news page.

 A mobile device-friendly version of the website will be available in about six months, but for now, head to the revamped www.getba.org.nz and let us know what you think.

If you haven’t updated your Business Directory listing in a while, now’s the time

Our Business Directory is easily the most popular resource on the website, which means it’s also an opportunity to boost your company’s profile amongst GETBA members and beyond. A web banner in this section costs just $450 plus GST, contact us on 273 6274 for more information.

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TECHNOLOGY

MORE THAN MEETS THE EYE Panasonic New Zealand’s new Highbrook headquarters houses a wide range of expertise and resources, everything that’s needed to run a company that’s far more varied than most people realise. It may be too soon to mention a certain sailing competition, but it’s the perfect example of how much more there is to Panasonic than just televisions. Panasonic’s FZ-A1 Toughpad was perfect for Team New Zealand to get their pre-race information because it’s tumble-proof and waterproof. This meant that when they had to make sure that it wasn’t on board for the race itself, they could simply put it in a plastic bag and throw it overboard for their chaseboat to pick up. “We’ve been involved with Grant Dalton since the Whitbread Round the World races 20-odd years ago,” explains Panasonic New Zealand’s Commercial Manager Darryl Yate. “One of the challenges we face as a company is letting people know that we have a broader range than just televisions.” Panasonic has an annual global turnover of US$115 billion and employs around 310,000 people. The New Zealand division is not just another ‘branch’, it is essentially its own company, making its own decisions and using its own in-house resources – from call centre to repairs, sales to warehousing – all of which are based at its new headquarters in Highbrook Park.

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Now that Panasonic is offering more whiteware - from washers and driers to fridges and kitchen appliances - they needed more space and Highbrook ticked that box. Its strong business community also suited the company’s local focus. As part of the company’s countdown to its 100th anniversary, Panasonic is focusing more heavily on the business-to-business side of things, expanding its product range, as well as becoming the world’s most ecofriendly company. “As a percentage of the business, B2B is growing every year,” Yate says. “We create tailor-made solutions for businesses, especially when it comes to the systems that come into play at the design and build phase – things like security, heating and cooling, and phone systems. Video-conferencing has become an important component as businesses look to make savings in time, money and carbon emissions and Yate says the next innovative area will be digital signage and making glass interactive – to get an idea what he’s talking about, take another look at the film Minority Report.

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“One of the challenges we face as a company is letting people know that we have a broader range than just televisions.“ One of the other innovations that’s not usually associated with Panasonic but is in use at their new headquarters is solarpowered security cameras. “Solar energy has always been hampered by the quality of the panel. The ones we’re using here are photovoltaic panels, which only need daylight rather than sunlight, so they can still charge on a grey day. The inverter (which converts AC power to DC) is also built in, which is a bit more costeffective.” Yate adds that the whole Highbrook area is using a Panasonic security system, although he’s coy on the details for obvious reasons. Of course, televisions and screens are still a big part of the business – whether it’s for the consumer market or the B2B market. In case you’re interested, Panasonic now offers 103-inch commercial plasma screens available or even a monster 152-inch if that’s what you need.”  www.panasonic.co.nz


EVENTS

Cashflow management and funding growth Growth for any business comes at a cost, putting particular pressure on cashflow, which is why GETBA’s August Business Owners Forum focused on funding growth. Panel member Grant Hally writes that building a great business relies on reducing the cashflow cycle. In a recent interview with BRW magazine, author and former GE CEO Jim Collins warned that we have moved from a period of relative stability into one of chaotic disruptive normality. In other words, we are returning to normal. Normal is chaos, disruption, uncertainty and change. That’s the human condition. This turbulence is likely to gather pace with technology and globalisation acting as accelerators, speeding up the boom and bust cycles. It sounds ugly, but with this turbulence comes opportunity. The new world order is a fertile place for those striving to be the best. The exceptional should be positive – being great was an option, now it is a necessity. Great companies have three to ten times the ratio of cash to assets when compared to their competition. Great companies take a conservative approach to debt. They see cash as an insurance policy; a buffer. They shave risk wherever possible. When they hit a difficult time, they really pull ahead of those who are less disciplined. If you want to be a great business, we recommend a profit and cashflow budget with balance sheets attached. This will make you consider all the issues necessary to achieve sustainable growth. You also need to understand the working capital cycle (as illustrated in the diagram supplied by kineticplanning). If each of the stages in the working capital cycle takes 30 days, you may need to fund your sales for 120 days or more. That means you need cash to finance four months of sales. This is not unusual. Have you thought about this?

How many months worth of stock are you holding? How many of your debtors take longer than 30 days to pay? One hundred and twenty days may be at the short end.

Greatness doesn’t happen in one moment or one breakthrough. It is all about building momentum over a long period. So plan, plan, plan and regularly work on your business.

At the Business Owners Forum we discussed ways of reducing the cash-flow cycle, including:

 Grant Hally is Managing Partner at chartered accounting firm RSM Prince in Highbrook. www.rsmprince.co.nz

• Setting up your terms of trade to encourage quick debtor collection • Owning up to slow moving stock and turning it into cash • Putting continuous pressure on debt collection • Offer a small prompt payment discount • Having your suppliers fund consignment stock • Using a just in time process for manufacturing • Planning your input requirements way ahead • Looking at how you fund your imports • Collecting information to find ways to reduce the working capital cycle • Looking at alternative funding methods including factoring There were many more, but you get the idea. Talk to your chartered accountant to establish what will work best for you.

Next Business Owners Forum: Sales and Marketing 30 OCTOBER When 4-6pm, Wednesday 30 October 2013 Where BNZ Partners Business Centre, Level 1, 86 Highbrook Drive Refreshments Beer, wine and pizza Register by 23 October by phoning GETBA on 273 6274 or email admin@getba.org.nz

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CRIME PREVENTION

KNOW YOUR NEIGHBOUR GETBA and the local community police are supporting vulnerable local businesses through a new project that helps them improve their security and prevent crime. The Know Your Neighbour project arose from a conversation between Botany Community Police Senior Constable Garry Boles and GETBA executive officer for crime prevention Coralee Carr. Based on CPTED (crime prevention through environmental design) principles, it started in July and will run until at least the end of the year. Each week they visit businesses in the East Tamaki area that may have had a break-in or similar experience to conduct a mini-audit to help reduce the likelihood of being targeted again. During a tour of the property the business owner or manager is asked a series of questions and asked to rate their answers on a scale of 1 to 5. At the same time

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Senior Constable Boles and Coralee look at the property to determine whether the premises looks cared for and well laid out from a CPTED point of view. This includes looking at the natural visibility of the business, inside and out, and whether there are hiding places that could help thieves slip in and out unnoticed. They consider staff safety and whether there needs to be more active security measures in place. The pair then identify changes that could be made and make recommendations for areas that, with simple modification, could improve the business’ security. These recommendations are emailed to the owner and the information is then added to the Police computer database.

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Senior Constable Boles and Coralee then talk with neighbouring businesses, advising them that a crime has taken place and seeking permission to put together a contact list that can be shared with immediate neighbours so they can get hold of each other quickly if they need to. That list is then emailed to everyone on it for future reference. To complete the process, they revisit the premises within a month to six weeks to see how many of the recommendations have been implemented and whether they have been useful. ď ľ If you would like to make an appointment for a crime prevention site visit, please contact Coralee Carr on Ph 273 6274 or email exec@getba.org.nz


Protecting your assets Loss and shrinkage can hit companies hard, regardless of size or age, so it’s important to put in place clear and simple polices and procedures to prevent it. Most companies spend around 70 per cent of their security budgets attempting to prevent losses from burglars or opportunist thieves, but surveys show that 70 per cent of loss or shrinkage is down to staff theft, willful or spiteful damage. Bryan Wotton, a senior investigator for Securitek, says business owners should be asking themselves two main questions: is your cashflow not as healthy as expected?; are you not meeting budget as expected? Asking these questions is not a one-off activity, it’s a matter of constant monitoring that Steve Hayes, a partner at RSM Prince, says extends to regular cyclical counts, such as stock-takes. This is especially important for businesses that have highvalue and easily portable inventories. “Make sure counts are overseen by different staff to those who are usually charged with taking care of the inventory,” Hayes says. “This also has the flow-on effect of being able to deal with problems, should they occur, more effectively and with less risk of causing further loss.” Wotton agrees, saying that businesses should follow the 10/80/10 rule – 10 per cent of staff are completely honest, 10 per cent are completely dishonest and the other 80 per cent could swing either way. “Your security budget and strategy should therefore be designed around keeping those 80 per cent honest.”

This relies on implementing effective policies and procedures. Loss prevention manager from Farmers, Chris Bauckman, says that all personnel checks (criminal, driving, CV and referees) need to be thorough, including looking for gaps in employment and further checking out any referees that have been in a position of supervising or managing any prospective employee. “Time spent carrying out checks and talking to referees will be beneficial in the long run,” Bauckman says. “Do not be afraid to ask referees or previous employers whether they would be prepared to re-employ a prospective applicant.” Where personnel are responsible for dealing with high-value, desirable products or cash, put in place checks and balances that ensure temptation doesn’t get the better of them. As Wotton says:

“If you think someone is stealing from you, they probably are.” Don’t support crime, report it Reported crimes are collated by Police Intelligence and drive the allocation of resources and patrols. If you don’t report it to the Police, then they don’t know about it. • Call 111 if it’s an emergency or the offender is present • Call (09) 261 1300 for the Crime Reporting Line after the event • Call 0800 555 111 for the Crime Stoppers anonymous information service

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EVENTS

BRAND NEW FACILITIES FOR HIGHBROOK GETBA members made the most of the opportunity to view Highbrook’s new conference facility and hotel at last month’s business showcase event.

KEEP IT LOCAL SUPPORT LOCAL BUSINESSES! For just $150 plus GST, East Tamaki businesses can now promote their products and services to local businesses via our Keeping it Local emails. Each week we put the spotlight on a different local business. Email admin@getba.org.nz or phone us on 09 273 6274 to book your spot

come back to New Zealand,” Brendan Kelly explains. “We chose Quest because they’re market leaders in business to business; we chose Highbrook Quest because of the area it’s in. There is unbounded potential here and latent demand.” Brendan Kelly is enjoying integrating the business into the local market and part of that has been tapping into GETBA. “We went along to the breakfast with Stephen Tindall where he talked about Youth Connections [in June] and as a result of that we got in touch with them and have found five staff members through the organisation, all of them are young people who had been unemployed.”

Kelly, who were looking for an opportunity back home in New Zealand after almost 30 years of living overseas.

Quest has more than 150 hotel apartments around the country and the Highbrook location offers furnished studio, one and two-bedroom apartments for short or longterm use. In fact many of the people who came along to the business showcase got to take a tour of those rooms.

“We have spent the last seven years running a boutique hotel in France. We took a look at the French economy, spent a year in Greece trying to buy a business there but chose to

If you happen to be checking in or visiting, don’t forget to say hi to Brendan and Keld’s golden retriever Sybil. She’s going to be as much a regular at the hotel as its owners.

www.waipunahighbrook.co.nz

It was immediately obvious to General Manager David Comrey how welcome Waipuna Conference Suites was to the Highbrook Business Park – the facility was full on the first two days it was open and had clients every day for the first two weeks. “It’s been fantastic to open with such a hiss and a roar,” Comrey says. “Waipuna has operated in this area for many years, we know the area, we know the people and we already have relationships with a lot of local businesses.” The venue is owned by the Mount Wellington Licensing Trust, which chose Highbrook because of its increasing desirability as a corporate address. It’s situated in The Crossing and offers three versatile rooms that cater for 200-300 people, ideal for everything from board meetings through to banquet dinners, cocktail functions and more. But as Comrey points out, a venue like this can’t operate without a quality hotel very nearby. Enter Quest Serviced Apartments. Located in the same building, Quest is run by franchise directors Brendan and Keld

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www.questapartments.co.nz


OUR ASSOCIATE MEMBERS More than 50 businesses from outside the East Tamaki precinct have chosen to join GETBA as Associate Members. Here are four of them:

The only reason to advertise is to increase sales How much of an increase in sales do you want for your business in the next two months? 37%? 200%? Why not reach for the stars and ask for 406%? Between June and July 2013 one of our clients experienced a mammoth 406% increase in sales. No smoke and mirrors involved, just intelligent advertising at work. It’s what we do everyday. If you’d like to explore the effect that our unique sales driven approach to advertising will have on your business, call us. Get in touch with East Tamaki’s only specialist advertising agency, Partisan Advertising. Call Greg Kramer on 021 254 0082, email greg@partisanadvertising.co.nz or go to www.partisanadvertising.co.nz.

The Sales Agency

Corporate Summer Golf GETBA Members

Get into the swing this summer with great corporate golf packages and events at Pakuranga Golf Club, located in the heart of East Auckland on Botany Road, Howick. • Golf tournaments - 9 & 18 holes • Corporate golf membership tailored to your needs • Competitive individual golf membership • Function/event management, venue hire and catering • Golf coaching and team building events • Golf gift vouchers for staff or customers • 9 hole twilight golf competition – enter as a team or individuals. Ask us about special discounts or incentives available to GETBA members*. *Terms & conditions apply. Offers subject to availability and for a limited time only.

For more information contact Pakuranga Golf Club T 534 3818 E admin@pakurangagolf.co.nz www.pakurangagolf.co.nz/corporategolf

If you are an associate member of GETBA and want your ad here, email admin@getba.org.nz or phone us on 09 273 6274.


PROPERTY UPDATE

Understanding seismic ratings GETBA’s recent Property Owner’s Forum focused on proposed central government changes to seismic ratings for commercial buildings – what they mean and what you need to know. Panel member Andrew Thompson explains. Christchurch isn’t the only city in the country that has to be prepared for seismic activity – it’s covered in the country’s Building Act and as such it’s important property owners understand the assessment system, the rules and the possible changes.

Earthquake prone buildings The Building Act defines an “earthquake prone building” (EPB) as one that is likely to collapse in a moderate earthquake, and owners are therefore mandated to ensure these buildings comply with at least 33 per cent of the New Building Standard. Under proposed government changes Councils will have to complete a seismic assessment of all non-residential buildings in their areas within five years of changes to new legislation taking effect. All owners of buildings that are assessed and defined as EPB will be notified and given 15 years to strengthen or demolish them.

What is a structural assessment? The New Zealand Society of Earthquake Engineering has set up a system that has two levels: the Initial Evaluation Procedure (IEP) and the Detailed Assessment. The

former is essentially the ‘first cut’. It is meant to be a quick, simple and cheap assessment and if it doesn’t yield the required result then you need a Detailed Assessment. This is more accurate, time consuming and costly and will indicate where the weaknesses are and what needs to be upgraded.

What to look for Auckland is a low risk seismic area. However, there are a few basic things you should be aware of when it comes to your building’s seismic rating. Buildings built before 1976 pose a bigger risk as do irregularly shaped (L-shaped, stepped) buildings. Steel frames and modern concrete frames are generally good and tilt slab is okay, but solid brick and concrete frames from the 1960s or before are not so good.

What’s happening in the market? Firstly, the IEP is being used to assess the percentage of the building’s compliance with the New Building Standard, something that it isn’t intended to be used for. This is important because banks, government agencies and many other

“We have seen a two tiered building market coming into force. Those who get a 67% rating can demand top rents and those who can’t have to discount.“ businesses are referencing these compliance rates when looking for commercial properties to rent. All three groups are requiring a proven 67 per cent compliance rate before entering into a lease, which means owners who have a 67 per cent rate can demand top rents, while the rest are forced to discount. When it comes to selling the property, banks require a 67 per cent compliance rate before they’ll lend money and insurance companies are not insuring buildings that have low compliance rates.

Changes to the Building Act Changes recommended by the Royal Commission for Christchurch Earthquakes are now being considered and the Government intends to introduce legislation in Parliament to amend the Building Act (2004) this year. While there is likely to be no change to the definition of an EPB, it is likely that timeframes for upgrading will be tightened and councils may get more power to act if nothing is done within that timeframe. There are plenty of buildings in Auckland that are pre -1976 and are therefore seen as a medium or high risk. If you think your building may need an assessment, make sure you employ an engineer who is familiar with the system and has done hundreds of them before.  Andrew Thompson is manager of building and structures for engineering consulting firm Harrison Grierson.

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ISSUE 6 2013

TH E G RE ATE R E AS T TAM AK I BU S IN E S S AS SO C I AT I O N I N C .

PO Box 58 260 Botany Manukau 2163 P 09 273 6274 E gm@getba.org.nz www.getba.org.nz

GETBA Newsletter 6  

Greater East Tamaki Business Association newsletter 6

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