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Talent wars & myths

A MEDIAWEB MAGAZINE

nyone who reckons we don’t have a war for talent at the moment is buying in to an urban myth of damaging proportions. Talent management is one of the single most important challenges that business leaders face today. So with that in mind, we’re taking the unusual step of dedicating the lion’s share of the articles in this issue to this one topic. Spread throughout the magazine are articles on how to recruit, manage, motivate, lead, inspire, reward and retain the very best person for each and every job. As HR2GO’s Julia Stones said at a HRINZ conference in Wellington earlier this year, those people who look for talented individuals know the war has just been masked by the GFC. NZ Inc, she says, clearly needs to harness the skills of talented individuals to safeguard NZ on a global stage. So in this month’s cover story (“Why diversity really matters” page 28) we examine the idea that tapping in to the creative energies of all people in NZ will make a material difference to our wealth and future as a nation. Business has long embraced the mantra, so are we making any headway? Yes and no, according to our research. There’s still much progress to be made in improving the fate meted out to many new migrants to Kiwiland who struggle to find work that fully utilises their skills. Women’s acceptance into boardrooms in meaningful numbers has stalled. And the “access economy”, which utilises the skills and resources of NZ’s many people with disabilities, remains largely untapped.

CONTRIBUTORS Reg Birchfield, Matt Carter, Bob Edlin, Nick Grant, Colin James, James Lee, Vivienne McLean, Iain McCormick, Doug Matheson, Jarrod Moyle, Paul Robinson, Peter Tynan

A

Corporate Social Responsibility Mediaweb supports the following organisations:

Our experts share their practical solutions. In “The future of talent” (page 36), for example, four business leaders explain how they manage the talent pipeline in their own organisations. And in his piece on remuneration (page 42), Strategic Pay’s Jarrod Moyle uses his firm’s latest HR metrics survey to benchmark everything from recruitment and training, to sick days, absenteeism and staff turnover. Meanwhile (page 44), Angela Neighbours, from executive development and coaching company ilume International, talks about how transformational thinking can help executives focus on what’s truly valuable for both themselves and their organisations. It’s not for the fainthearted, she warns. And Marjolein Lips-Wiersma shares her insights on the meaning of work – or why we all get out of bed and bounce, rather than crawl, into work each morning. It’s the stuff that makes workplaces zing. Finally, nailing all this stuff to personal outcomes, our professional development guide (page 48) outlines practical ways in which each and every individual can forward their own prospects and wage their very own war on talent. That should put some zing into everyone’s career.

PUBLISHER Toni Myers MANAGING EDITOR Ruth Le Pla 021-266 3978, editor@management.co.nz

BUSINESS DEVELOPMENT MANAGER Rod Myers, 09-372 6444, 027-484 8046, bdm@management.co.nz ADVERTISING MANAGER Trish Day, 027-561 6556, trishd@mediaweb.co.nz DESIGNER Jennifer Adams COPY & WEB EDITOR Gill Prentice PRODUCTION MANAGER Fran Marshall franm@mediaweb.co.nz NEW SUBSCRIPTIONS www.management.co.nz/subscribe SUBSCRIPTION ENQUIRIES subs@mediaweb.co.nz

Phone 09-529 3000, Fax 09-529 3001 enquiries@mediaweb.co.nz www.mediaweb.co.nz PO Box 5544, Wellesley Street, Auckland 1141

NZ MANAGEMENT magazine is independently owned by Mediaweb Limited and is published 11 times a year. It is the officially recognised magazine of the New Zealand Institute of Management Incorporated. Editorial material does not necessarily reflect the views of NZIM. Copyright © 2012: Mediaweb Limited. All material appearing in NZ MANAGEMENT is copyright and cannot be reproduced without prior permission of the publisher. Editorial contributions are welcomed. Letters to the editor are also welcomed, but pen names are not acceptable. NZ MANAGEMENT is printed by PMP. Subscriptions: One-year NZ subscription (11 issues) $78.15 (GST incl). Overseas (airmail only): Australia $NZ130; rest of the world $NZ250. Enquiries: Mediaweb Limited, PO Box 5544, Wellesley Street, Auckland 1141, New Zealand. Phone: 09-529 3000, Fax 09-529 3001, enquiries@mediaweb.co.nz www.management.co.nz New Zealand Institute of Management enquiries to: NZIM Inc, Box 67, Wellington; Northern, Box 6600, Epsom; Central, Box 11781, Wellington; Southern, Box 13044, Christchurch.

Ruth Le Pla, Managing Editor Vol 59 No 10 • ISSN 1174-5339 (Print), 1179-3910 (Online)

NOVEMBER 2012

| management.co.nz | 3


contents 28 COVER STORY

Why

Why diversity really matters

DIVERSITY

REALLY

Tapping in to the creative energies of all people in NZ will make a material difference to our wealth and future as a nation. We’ve long embraced the mantra, writes Ruth Le Pla, so are we making headway?

MATTERS

18

3

EDITOR’S LETTER

6

INBOX: News and views

18 AS I SEE IT: Matt Carter 20 NZIM: Grow your own leaders Reg Birchfield 68 EXECS ON THE MOVE 70 EXECUTIVE DEVELOPMENT OPINION 22

POLITICS: Testing Shearer – and his party Colin James

23 ECONOMICS: Much ado on voodoo economics Bob Edlin 24 LEADERSHIP: Building legacy leadership Reg Birchfield 25 THOUGHT LEADER: Rapid robots & happy humans James Lee ADVICE 66 EXEC HEALTH: How to bounce back Peter Tynan 72 TOP TIPS: How to retain talent in uncertain times Paul Robinson

62


NOVEMBER 2012 • Vol 59 No 10

features 62 Stories of NZ Enterprise Success Tourism & Entertainment: Tour of duty?

36

NZ’s tourism sector is at the crossroads. A number of initiatives are set to galvanise action. Nick Grant outlines the options.

36 Talent Management: The future of talent

Four business leaders talk about their very different strategies to identify and develop talent within their organisations. By Vivienne McLean.

42 HR Metrics: Measuring up

Strategic Pay’s latest HR metrics survey benchmarks everything from recruitment and training, to sick days, absenteeism and staff turnover. Jarrod Moyle unravels some of its findings.

42

44 Coaching: Tough stuff

Transformational thinking can help executives cut through the tyranny of the urgent to focus on what’s truly valuable for both themselves and their organisations. It’s not for the faint-hearted. So how does it work?

46 Face to Face: The why of work

Business leaders who tap in to employees’ reasons for fronting up to work each morning can unleash deeper levels of engagement and help create more energised workplaces.

48 Professional Development Guide

NZ Management’s biannual guide to education and professional development courses available from New Zealand universities, polytechnics and private training organisations.

44

The Director 74 Lesley Whyte: Championing women on boards 76 Doug Matheson: No executive directors 78 Board books: The future of boards 80 Iain McCormick: What I hate about boards

74


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New learning for a new economy Photo: thinkstockphotos.com

The talent development focus in the corporate sector is mostly on graduate skills and performance, and executive and professional development. But what about the ‘feedstock’ for driving the economic engine of the future? As many Auckland residents can attest, it can be almost impossible to get a plumber or electrician at short notice. And talk of the need to import tradespeople for the Christchurch rebuild has left many wondering just what’s happened to workforce planning and strategies to ensure that our education system is delivering graduates with the skills and resources that the current and future workplace requires. It’s not only an apparent mis-match between vocational training and workplace needs that’s of concern but a high level of disengaged students throughout the schooling system. Disengagement and premature exit from formal education mean both a huge waste of potential and a growing cost to the nation for the social services to support marginalised under-achievers. But it is providing the impetus for a range of unconventional solutions. Some of the most innovative thinking is delivering education programmes targeting young Maori. Many of these programmes are driven by concern about both unemployment and under-employment of

young Maori – particularly young Maori men. The Open Wananga, the home-based learning subsidiary of Te Wananga o Aoteoroa, introduced a project this year targeting unemployed young male Maori in particular, those in low-paid jobs and those looking to enter the workforce. Called Mahi Toa, the fee-free programme delivers a National Certificate in Employment Skills. The Open Wananga looked beyond traditional learning models and conventional education recruitment and engagement strategies; searching for examples of contemporary advertising and media campaigns and characters that pushed the buttons of the demographic they were targeting. The Canterbury earthquakes sparked a collaborative Maori Trade Training initiative in Christchurch last year called He Toki ki te Rika – Inspiring Maori Leadership in Trades – between CPIT, Te Tapua o Rehua, The Office of Te Runanga o Ngai Tahu, and the BETA cluster of ITOs and supported by Te Puni Kokiri. It aimed to increase the participation of Maori in trade-based careers at all levels, and build Maori capability within the building and infrastructure industries in Canterbury. And Tai Wananga, a Maori-culture based secondary school which opened in Hamilton this year, seeks students who are passionate about science and have leadership potential. The school is a joint initiative between Te Wananga o Aoteoroa and the Ministry of Education. It has an innovation and technology focus and is open to non-Maori also. Students have an hour’s compulsory exercise each morning before studies. The principal Toby Westrupp headed Tu Toa, a similar school venture in Palmerston North which successfully used sport to engage with students. These are beacons of hope and potential in an education landscape that largely appears to be geared still to deliver too few of the scientists, engineers, innovators and entrepreneurs (and tradespeople) that the rapidly evolving economic environment requires. It’s a problem shared by most developed economies; where economic change has outstripped the ability of education and training strategies to keep up. In the UK for example, there is a grave shortage of engineers required to maintain the nation’s position as the ninth largest manufacturing country in the world. More than two million new engineers will be required over the next 10 years with 31 percent of high-tech manufacturers already recruiting from overseas. M

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INBOX

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Who will keep their job? CUSTOM PACKED Dunedin employers looking to hire migrant staff are getting help in the form of an Employing Migrants Successfully information pack that can be customised to their needs. The new pack of resources has been developed by Dunedin Settlement Support New Zealand coordinator Fi McKay, who is based with the Dunedin City Council’s Economic Development Unit. The pack merges the EDU’s own locally developed material with information from several different agencies and will help new migrant workers settle in the city. “We recognise that not every employer is the same. Larger employers often have HR resources whereas small to medium employers usually don’t, so the pack is designed to be tailored to their requirements,” says McKay. “To make sure employers get what they need, someone will meet with them to discuss what their pack should contain so it is relevant to their industry and their business.” The information pack concept was developed because it became apparent that employers and recruitment agencies were largely unaware of the resources and tools available to assist them to attract, settle and retain migrant employees. M

i

Perfectly placed.

Business decision makers are more confident than the general population about retaining their jobs in the next 12 months, according to a recent Horizon Research poll. Just under 60 percent think they will keep their current job compared with 40.5 percent of employed people aged 18+. Five percent of business decision makers are looking to go overseas to work, temporarily or permanently, in the next 12 months. Meanwhile, 13 percent of them say they are looking to change their jobs in the next 12 months. Six percent think they will lose their job in the next 12 months. This is higher than the population 18+ years (four percent) Among the population as a whole, people with no, or only school, qualifications are least confident about keeping their jobs. Business Total 18+ years Decision Makers I will keep my current job

40.5%

59.5%

I will lose my current job and easily find another

1.2%

1.6%

I will lose my current job and it will be hard to find another

2.5%

4.8%

I will change jobs easily

5.4%

3.6%

I will change jobs with difficulty

6.4%

9.8%

I will go overseas to work temporarily

3.6%

2.9%

I will go overseas to work permanently

1.9%

2.2%

None of these

27.5%

7.8%

Something else

11.0%

8.0%

Source: Horizon Research nationwide survey September, 2012. 3148 respondents weighted to represent the New Zealand population. Maximum margin of error ±2.4%. Sub sample of 691 business decision makers (business managers, executives, proprietors, self-employed, professionals and senior government officials). On the web: www.horizonpoll.co.nz

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M

INBOX

PEOPLE RISKS BACK ON THE AGENDA People risks have returned to the top five concerns for Kiwi businesses, according to the latest Marsh biennial Survey of Risk, launched in October. Lost productivity and reduced efficiency due to staff absenteeism, stress, low morale and staff turnover collectively ranked fourth in the top five risk issues identified for 2012. Denise Moller, marketing & communications manager for insurance broker and risk adviser Marsh, says staff in many organisations have been under pressure for a variety of reasons in the past couple of years. Now, with the challenging economic climate, for example, many businesses have been forced to cut back on resourcing, inadvertently placing pressure on those still within the business, she says. People in Canterbury have also had “an extra challenging time”, which has caused increased stress for many. “It is for these reasons and more that this people risk has moved back into prominence – having last featured in the top five risks in our 2008 survey.” Moller says employee retention is a big challenge for employers. As the economic climate improves there will be greater job opportunities available – especially for high performing staff who are the most likely to leave.

Survey respondents were asked if they had plans in place to manage this risk. Nearly a quarter of businesses said that they did not. Moller says now is the time, therefore, for business leaders to focus on staff retention and what they can do to ensure they don’t lose those key performers who have a positive impact on the bottom line. “Leading organisations will be those who increase their focus on communication through honest and open efforts to help reduce employee anxiety and uncertainty. You need to recognise the psychological burden and impact that can arise in a tough economic climate, and make sure that workplace support and occupational health provisions are in place to prevent high levels of work-related stress.” She says businesses wanting to get the highest level of performance from their employees must continue to develop their people – even when times are tough. “Provide clear signals of opportunities for growth and development, and be proactive in letting staff know why it is in their best interests to stay.” Research shows that money is often not the first priority for most people – generally only coming in at number three or four behind motivators such as career advancement and work environment. “Now is the ideal time to be innovative and look for new ways of doing things. For example, introduce flexible working hours. Also consider other employee benefits such as life and medical insurance. The cost is not as expensive as you may think and there are advantages to both the employer and the employee.” Moller says it is more critical than ever that organisations optimise their workforce. “Explore engagement, development and reward strategies with employees to improve your competitive advantage. Those that do will be best equipped to survive and grow when the economy starts to strengthen.” To download a full copy of the 2012 Survey of Risk report visit www.marsh.co.nz. M

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8 | management.co.nz | NOVEMBER 2012


INBOX

M

THE DIVERSE BENEFITS OF DIVERSITY NZ business leaders are, on the whole, pretty positive about their own diversity policies, according to joint Hay Group/NZ Management magazine research. For the past three years, Hay Group and NZ Management magazine have teamed up to identify and celebrate NZ’s Most Reputable Organisations. (See “NZ’s most reputable organisations: Why good leaders matter” in NZ Management magazine September 2012 issue.) This year, as part of our research we also asked senior NZ executives about their own diversity policies and what benefits, if any, they derive from them. While several respondents told us in general terms that a more diverse workforce was a better reflection of both wider society and their own organisation’s client base, many others laid out the specific business benefits. Diversity provides an “ability to capture emerging and growing income and customer streams”, according to one respondent. Another spoke of “gaining access to skills that are often not recognised by organisations with a narrow focus”. Better decision-making and planning, and broader perspectives also featured in the replies. Several business leaders highlighted the benefits of fresh thinking. As

one put it, “diversity will allow us to avoid group think”. Another executive emphasised “increased incidences of devil advocacy resulting in better thought out solutions for the organisation and our clients”. Others pointed to the associated benefits of more tolerance and a more interesting work environment. There was a cluster of answers around innovation. Several people mentioned increased workplace productivity. Others homed in on gaining an international competitive advantage and international contacts. One defined the benefit of their organisation’s diversity policy as an “indicator of being progressive”. A smaller number of responses focused on the negatives. Asked what benefits they derive from having a diversity policy a handful of people came back with nil, none, “very little” and “not sure”. One person said their organisation has no fixed diversity policy, just “a directive from US head office”. Another said their industry is “still very male dominated in NZ and I think the diversity policy exists so we can say we have one”. Another replied candidly that their policy was “new and still being finalised so no benefits have yet been seen”. A couple of people said their policy was good for public relations. M

BABY BOOM, OR GLOBAL BOARDROOM? 59% OF COMPANIES INCREASED PRODUCTIVITY AFTER DEPLOYING A FLEXIBLE WORKPLACE.* CISCO CAN ENABLE YOU TO WORK YOUR WAY CISCO.CO.NZ/WORKYOURWAY

PARTNERS OF NATIONAL TELEWORK WEEK. *The Next Generation Workspace study, Forrester Consulting / Cisco, 2012.

NOVEMBER 2012

| management.co.nz | 9


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Letter to the editor Dear editor I always enjoy Reg Birchfield’s very thoughtful articles in NZ Management magazine. I am an unashamed disciple of Deming and the school of total quality management (TQM) which is now sadly diluted into the jargon of ‘excellence-speak’. In Reg’s writing about leadership I can feel the quest and yearning we are all engaged in for improved productivity and a productive workplace culture in New Zealand. But as a nation we are asleep to the old rules of quality control which are about nothing but quality improvement – continuously, little by little, forever. But you have to know how. There are well-founded rules, but our NZ managers don’t want to know them. They don’t want to get with a programme they consider merely an old hat fad. They refuse to be, in their view, patronised. Not just New Zealand managers, either. Deming railed against US management schools churning out graduates who hadn’t studied any of the fundamental principles and history of process quality control (manufacturing and service). TQM had its moment, then we fell back into command and control (aka flying by the seat of our pants). Our leaders are helpless and ineffective because they don’t work within the tried and true philosophy of how to make something reliable, consistent and fit for its customer’s purpose. They don’t know what that means – but they spout the jargon willy nilly, while huddled up closely to their bankers. It will probably take a catastrophe to bring it back but it will return one day. I feel us sliding toward one sometimes, as a nation, and the disease is global. Some people have not forgotten but they are too few and we are kept outside the tent. – Best regards, Julian McKean

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10 | management.co.nz | NOVEMBER 2012

Tony Wai.

Paddy Faisandier.

CONTRACTED NOT ENGAGED Organisations that actively engage with their contract staff can reap considerable benefits. Yet a recent global report by HCI (Human Capital Institute) shows 54 percent of businesses surveyed do not offer contract talent the same engagement opportunities as permanent staff. Contractors admitted to feeling uncomfortable in businesses that lack organisational culture, induction and socialisation processes. Tony Wai, MD of Crackerjacks Contracting, says the statistics “highlight the lack of understanding corporate practitioners have about the value of a contractor in an organisational context, not just as an outsider to the business, but as an asset contributing toward organisational success”. Over the past five years, contract-based and contingent positions have grown substantially, with contract-based roles filling 12 to 20 percent of the average organisation’s total workforce. Wai suggest that an increase in contractor-employer engagement would lead contractors to invest more effort and passion into their position. “This could lead to improved productivity, performance, customer relationships and profitability,” he says. Crackerjacks Contracting and The Contingent, a managed service provider offering contractor workforce solutions, have recently joined forces to enable contractors and businesses full management and payroll services. Paddy Faisandier, executive director of The Contingent, says he has heard of one organisation employing about 1200 contractors and only 20 to 30 permanent employees. Organisations can employ a range of simple ways to keep contractors engaged. These can include: non-cash rewards; inclusion in office social events; wellness programmes; and opportunities for exit interviews. Organisations can also consider helping contractors discover their own strengths and provide freedom and creativity within their role. M

The Deloitte/Management magazine Top 200 Awards 6.30pm Thursday 29th November SkyCity Auckland Convention Centre BOOK NOW FOR THIS YEAR'S EVENT Visit www.management.co.nz/top200 Or contact Tania Vela E: taniav@mediaweb.co.nz P: 09 529 3000


We do both www.deloitte.co.nz

Š 2012 Deloitte. A member of Deloitte Touche Tohmatsu Limited.


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INBOX

Leverage talent through training Over half of New Zealand companies don’t offer formal training or apprenticeships, according to new research by ManpowerGroup. The findings have prompted the group to call for organisations to revisit their training strategies in order to boost productivity. The data is included in a research report “Leveraging Talent through Training”. ManpowerGroup notes that as the Christchurch city rebuild accelerates next year there will be increased pressure on demand for skilled workers in New Zealand. Michael Sacco, manager Australia and New Zealand, ManpowerGroup Training Solutions, encourages New Zealand employers to adopt a “buildversus-buy” mentality. “Many employers are accustomed to finding talent outside their organisation. Yet this can be a risky approach in a talent scarce marketplace,” he says. “Our advice is to expand the means of developing talent from within.” Sacco says the rebuild will put huge pressure on the local labour market, with the estimated need for workers outstripping the available local talent pool. “Engaging new talent from local and overseas sources is an important part of building a workforce, however, competition for talent in New Zealand is also a factor.

“Training is a logical way to grow a sustainable supply of talent and allows organisations to focus on developing candidates’ relevant ‘hard skills’ and fields of specialisation,” he says. ManpowerGroup’s survey found that the major barriers for organisations offering internal training programmes were: the belief they were too small, the belief they lacked the resources to deliver/run programmes, and that training was too costly. M

“As a person who has been in a leadership role in schools for over 25 years in Nelson, Dubai, Tanzania and now Auckland, I have been part of many initiatives. Some have made little difference, some have been significant. Experience has given me the ability to gain sense of what is making a difference. I have never seen such a significant impact on students as I witnessed with FYD’s Career Navigator.” Salvatore Gargiulo Principal, Manurewa High School

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12 | management.co.nz | NOVEMBER 2012


UNVEILING NEW ZEALAND’S NEWEST STAR Aligning with the brightest of them all since 1998.

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Proud to support the Deloitte/Management Magazine Top 200 awards .


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CHERCHEZ LA FEMME

Annual Turnover ($NZ Million)

Type of Organisation

Strategic Pay has released research providing a snapshot of female representation in NZ board rooms. When looking at organisation size, those with between $5.1 million and $10 million annual turnover have the most female directors at 32 percent. Those organisations with between 1001 and 2000 employees have 28 percent female directors. At the other end of the spectrum, organisations with 50 or fewer employees also have a relatively high

Public Sector Organisation – Central / Local Govt Public Sector Organisation – Crown Owned Public Sector Organisation – Local Body Owned Private Sector Organisation – Listed Private Sector Organisation – Unlisted Co-operative Entity Not for Profit Entity State Owned Enterprise Other $5m or below $5.1m – $10m $10.1m – $20m $20.1m – $50m $50.1m – $100m $100.1m – $200m $200.1m – $500m $500.1m – $1000m Over $1000m

representation of women on their boards (23 percent). Broken down by type of organisation, Strategic Pay’s research shows Crown-owned public sector organisations have the highest proportion (38 percent) of female directors. They are followed closely by central/local government and not-for-profit entities with 35 percent female directors. This year’s survey is based on analysis of 2136 individual directorships across 397 organisations. The full report includes current trends and practices relating to directors’ fees within New Zealand organisations. This is Strategic Pay’s 20th such survey. All data and information relate to 1 May 2012. M

Directors In Sample

%

Male

Female

72 336 128 525 235 99 228 76 108 65 29 25 32 30 57 52 34 56

4% 19% 7% 29% 13% 5% 13% 4% 6% 17% 8% 7% 8% 8% 15% 14% 9% 15%

47 (65%) 208 (62%) 110 (86%) 461 (88%) 214 (91%) 94 (95%) 149 (65%) 50 (66%) 83 (77%) 223 (77%) 63 (68%) 122 (83%) 154 (83%) 154 (84%) 212 (79%) 188 (78%) 113 (77%) 178 (76%)

25 (35%) 128 (38%) 18 (14%) 64 (12%) 21 (9%) 5 (5%) 79 (35%) 26 (34%) 25 (23%) 65 (23%) 29 (32%) 25 (17%) 32 (17%) 30 (16%) 57 (21%) 52 (22%) 34 (23%) 56 (24%)

NZ Management magazine makes perfect sense when looking for the perfect corporate Christmas gift… Gifting your clients has never been easier… To subscribe, phone Sue on 09 529 3000 or email subs@mediaweb.co.nz, and we’ll do the rest… 1 to 5 subscriptions save 30% ($54.67 each) 6 to 10 subscriptions save 35% ($50.77 each) 11+ subscriptions save 40% ($46.86 each)

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AS I SEE IT

Seizing career openings Matt Carter is director, organisational development, at Otago Polytechnic in Dunedin. What one piece of advice would you give to a 25-yearold wanting to accelerate their career? Say yes to every opportunity, both small and large, and especially those that are outside your area of expertise or comfort zone. You will learn a lot and you never know where they might lead. I was sent on a small, unappealing consulting assignment that turned into a project management role. It lasted a year and accelerated my career significantly. Learn everything you can from those you are working with who have different – and usually much more – experience and skills than you. Take the time to observe, talk with, and genuinely value everyone’s knowledge and experience. How could senior business leaders more effectively help the next generation of managers? Opportunities to be involved, either as an observer or a participant, in activities that will develop skills are important. Access to the business leader in terms of time, to challenge, encourage and be a sounding board is also key to fasttracking development. Business leaders also have to take risks with young people by setting challenging goals and giving them make or break responsibility so they have a chance to step up and prove themselves. To make it worthwhile for the business leaders to invest in them, the young person needs to prove they are a high performer, a quick learner and are trustworthy. If you could turn back the clock what’s the one career decision that you would undo? Due to a two-week project delay, I narrowly missed out on an opportunity to do a six-month project management role in Canada. If I had my time again I would negotiate much harder to find a way to meet both commitments. It was a once in a lifetime opportunity both personally and professionally. If I had negotiated a resolution we wouldn’t now be wondering what might have been if we had lived and worked in Canada. M

18 | management.co.nz | NOVEMBER 2012


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2012’s NZIM/Eagle Technology Young Executive of the Year contenders: Lauren Voyce, Shane Gordon, Glenys Powell.

NZ has more trouble filling key management and leadership roles than most developed economies. That, in part, is whyR the NZIM/Eagle g al W ners & ss 2 Young isF Technology Executive of the Year Award is so important, says Reg Birchfield. N R ER Sha o M C ok,

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20 | management.co.nz | NOVEMBER 2012

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in May this year showed that 48 dpercent A kl li t of New Zealand employers were having difficulty filling key positions THE N CENTR Lin on M organisations. Cook, lair “well Sza their This result sits the global average of 34CEO percent, pabove” Man ger arc Partnershi the survey said. sNew Zealand now ranks Eng ish La eighth measuredN th Cou highest cil of of 41 countries Partners Ze talent land shortages. for And year global d earlier this 6 | accounting W li o consultancy Deloitte released its 2012 Talent Edge survey in which an overwhelming 83 percent of Kiwi employers said talent shortages were impacting their business results. Notwithstanding current economic uncertainties, talent shortages are “clearly a big issue”, the report said. Interestingly, the employers surveyed by Deloitte were optimistic about their workforce growth expectations – except in the public sector. “But,” asked study leader Richard Kleinert, “where will these employees come from?” There was, he added, a large disconnect between employer expectations and future turnover versus employee expectations on job movement. “New Zealand employers may be excessively confident in their ability to attract and retain the talent they’ll need in the future,” he said. e1

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here’s nothing quite like meeting the promise of tomorrow. For me, it happens when I S am invited to join the judging panel of the NZIM/Eagle Technology Gr Young Executive of the Year Award. This year was no different. The three H Ne national finalists, two young women and one young man, exemplify the outstandingly talented young leaders the award’s programme has uncovered for the past 17 years. They are wise beyond their 35 years or less, are extraordinarily accomplished and destined to achieve more. They are also living testaments to the value of the management development programmes their respective organisations have provided or otherwise encouraged them to undertake. They are feedstock for New Zealand’s much-needed next generation of leaders. That there aren’t more similarly focused organisations making comparable efforts to find, grow and retain talented young executives and to build their enterprise-wide talent pools is both disappointing and potentially problematic for local enterprise. Research by the global employment consultancy Manpower Group released

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S ety Limit d (M WORSE TO COME New Zealand’s talent and skill shortages are expected to worsen next year. EmploySOUTHERN Brend ntherefore, McWilli ers should not be surprised, if they lost some of the “most sines talented” Unit Ma V250 Aircraft En people, according to Kleinert. Employers uage were, he said, too inclined Zeal nd Chri to tc take urch their Cent even e experienced employees Engine for granted though they may be the most valuable in 8 | l terms of experience, relationships and institutional knowledge. NZIM chief executive Kevin Gaunt agrees with the Deloitte study and its conclusions. “We are constantly surprised by the way in which many organisations fail to look after and develop their most promising young executives. Research proves time and again that finding and attracting new talent is important, but retaining and building the talent an enterprise already has is critical, particularly in Richard Kleinert. today’s highly


mobile and competitive talent marketplace.” Some recently released research from Pennsylvania-based global executive research company Development Dimensions International (DDI) confirms that, as Gaunt suggests, it pays organisations to “grow their own” leaders. “And that is one of the most important messages of our Young Executive Award programme,” says Gaunt. According to the DDI study, it is more expensive to hire external talent than to select talent for leadership positions from within the business. Promoting talent from within was, they found, the most reliable way to ensure that organisations put “the right people in critical leadership roles”. Conversely, organisations that hired externally for non-leadership roles were more successful at identifying the right person for the job. More often than not, new hires feel disconnected between what they learn about a job in the hiring process and the actual job. Only half of new hires that responded to the DDI study were “confident they made the right decision” in accepting their job offer. RISKIER OPTION Hiring new talent, rather than developing and retaining it, is a riskier option. Hiring the best involves knowing what it takes to be successful in a particular job and making sure that who is hired has what it takes to succeed. Too many organisations don’t thoroughly define what’s needed to be successful in the job, according to DDI. Nor do they necessarily use the right mix or number of assessments to know more about candidates. “Hiring managers rely too much on their own judgement when making hiring decisions and this results in hiring failures.” “Obviously organisations must recruit from outside when there are talent and skills shortages,” says Gaunt. “But our observations suggest that most often the best leaders are promoted from within. Bringing them up to speed as leaders means investing in them and making a commitment to fleshing out

their experiences. We see the payback from that investment every year when organisations nominate their best talent for our award. Nominating them sends another important and reinforcing message – that their organisation values them and wants to acknowledge their success.” Deloitte’s Kleinert doesn’t think New Zealand employers fully understand what really motivates and appeals to different groups or segments of employees. “Most organisations operate with limited insight of these considerations and rely on old human resource programmes and people management practices that have not been updated and tailored to respond to the needs and interests of different employee groups. For example, the baby boomers’ desire for flexible work arrangements,” he wrote in his survey’s findings. “Despite the growing diversity of the population and the New Zealand workforce, diversity is not seen as a high priority among respondents. How long employers can continue to ignore this issue is a growing concern,” he added. Meanwhile, the shift in workforce demographics is relentless, globalisation continues, more Kiwis move overseas and a high level of employees are sufficiently disgruntled with their existing employers to want to change jobs. It looks like a burning platform according to Kleinert. It need not be so, he adds. “There is a great opportunity for proactive organisations to review their existing policies and practices through the lens of their future talent needs and better align and focus their talent strategies.” Again Gaunt agrees. “People make the difference today. They will equally make the difference tomorrow. We see the future potential each year when we interview the award finalists. Would that more organisations saw their people as strategic assets in which to invest and prime for leadership. Talent will always and increasingly define the measure of an organisation’s success.” M Reg Birchfield FNZIM is a writer on leadership, governance & management. reg@rjmedia.co.nz

INSPIRING MANAGERS Our aim is to build management capability through membership, development and research. Our focus is to: • Research leading management trends and practice and promote a constantly developing model of best management capability for New Zealand. • Enable managers and aspiring managers to participate in learning programmes, mentoring, and events that provide the information and experience they need to develop their capability. • To identify leading management role models and provide awards that recognise the career and educational achievements of managers.

NZIM Inc CEO: Kevin Gaunt FNZIM, FAIM Email kevin.gaunt@nzim.co.nz Auckland Offices Contact: Tait Grindley PO Box 6600, Wellesley St, Auckland 1141 Ph 0-9-303 9100, 0800 800 NZIM Email enquiries@nzimnorthern.co.nz Website www.nzim.co.nz Wellington Offices Contact: Shaun Sheldrake PO Box 11781, Wellington 6142 Ph 0-4-495 8300, 0800 800 NZIM Email enquiries@nzimcentral.co.nz Website www.nzim.co.nz NZIM Southern Regional Director: Michael Weusten FNZIM CEO: Joseph Thomas AFNZIM PO Box 13044, Christchurch 8141 Ph 0-3-379 2302, Fax 0-3-357 8003 Email admin@nzimsouthern.co.nz Website www.nzimsouthern.co.nz

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NOVEMBER 2012

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POLITICS COLIN JAMES

Testing Shearer – and his party

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resources versus GDP growth dichotomy as mutually reinforcing and backing clean technology. Jacinda Ardern has been edging into recasting “social welfare” as “social security”, building on the one inventive policy developed last term but buried at election time last year, the “childcentred” approach. But don’t expect detailed policy until well into next year. And when it comes the test will be whether Ardern injects more resilience into a policy area where Labour people are inclined to settle for feel-good benignity. In health and education – two policy areas which Labour used to regard as its turf – there is no real evidence of new thinking capable of meeting the radically changed and continually changing skill and fiscal conditions of this decade, let alone the 2020s. National is a lot further into that rethink though it has yet to put it into a coherent frame. The organisational rethink is further advanced, reshaping the party around regional “hubs”, encouraging registration of “supporters”, including issues activists, who don’t revel in drafty hall meetings, using social media effectively and giving the party membership and its affiliated unions a formal say in who should be leader. It also wants to emulate National’s training for would-be MPs. The leadership election proposal was test-driven informally in rank-and-file meetings last December in the contest between David Shearer and David Cunliffe. The formal constitutional formula needs to reflect the hard fact that MPs cannot have foisted on them a leader 51 percent of them don’t want. That focuses attention on Shearer, for whom the conference is a major, and perhaps decisive, test. Is he on

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he Labour party is now four years in opposition and two years away from its next bid. Its conference mid-month will be a measure of its transition. Labour has to do four things: rethink policy; modernise its organisation; demonstrate it is a lead-governmentparty-in-waiting; and demonstrate it is assembling a government-in-waiting. After a time in office, a party’s policy usually reflects continuity more than rethinking. After 1999 National didn’t re-frame much policy till its second term. Likewise Labour after 2008. Labour’s challenge now, after five periods in government between 1935 and 2008 when it swung from democratic socialism to neoliberalism to the “third way”, is to revisit first principles and reapply them to modern conditions in such a way that its policies will be relevant into the 2020s. Tweaking to squeeze into power in 2014 on electoral vagaries would not be a durable governing platform. The party council wants the conference to be more of a policy forum than over the past decade. Its policy council has begun to formulate a “high-level platform” which it wants MPs bound by. MPs David Carter and David Cunliffe have been rethinking macroeconomic and microeconomic policy and coming up with significant changes. They have been freed, and encouraged, to do this by a nowflourishing international debate among economists which challenges the neoliberal and monetarist settings which have been the orthodoxy of the past 30 years. Some of this looks like a return to the “mixed-economy” settings of the mid-20th century. Some is searching out new options. One option is to recast the natural

a discernible path to being a primeminister-in-waiting? That is necessary for the party to be seen as a lead-partyin-waiting. And that in turn is a prerequisite to Labour looking as if it is leading the formation of a government-in-waiting – as, for example, it did with the Alliance over the 15 months leading up to the 1999 election. Through the winter and early spring some common ground developed among Labour, the Greens and New Zealand First, including between Russel Norman and Winston Peters, both economic nationalists. But there are large jealousies among all three. Whether those can be submerged in active cooperation will be the test of whether Labour will have a real hope of governing post-2014. That will be the 2013 conference test. M Colin James is New Zealand’s leading political commentator and NZ Management’s regular political columnist. ColinJames@synapsis.co.nz


BOB EDLIN ECONOMICS

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Much ado on voodoo economics

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National Bank (SNB) is pledged to buy “unlimited” quantities of foreign currency to maintain the franc at a rate of Sfr1.20 to the euro. Green Party co-leader Russel Norman happened to mention Switzerland in support of his proposals. Prime Minister John Key advised him to go there and look and said he would find “all of these things are voodoo economics that do not work”. Whether the taxpayer should pay for the travel is arguable. The Greens would

imports but Key is on record as saying he thinks it is overvalued. Plenty of economists agree with him. This means he thinks it should fall. So the Greens would manage it down; the Government awaits a market correction to bring it down. Either way, costs will be whacked up for every New Zealander. Geddis subsequently acknowledged that Matt Nolan, an economist at

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ndrew Geddis is not an economist. He acknowledges he has had no formal training in economic theory, although “I dabble on occasion in some law and economics theory in the course of my day job” (as a law professor at Otago University). He further acknowledged this might disqualify him from talking about the Green Party’s economic proposals that include quantitative easing. He proceeded to talk about it, nevertheless. His fundamental point, on the Pundit blog, was that the arguments levelled against quantitative easing (QE) by government politicians didn’t carry much weight, at least not with him. He summarised them as (1) it isn’t necessary to do anything; (2) but if it is necessary to do something, QE won’t fix the problem at hand; and (3) if it were introduced to fix the problem at hand, it would do more harm than good. For starters, Economic Development Minister Steven Joyce had said the Greens’ proposals would significantly cause the international community to doubt New Zealand’s economic priorities and had been embraced only by “countries with crippling debt”. That rules us out, apparently. Yet the Swiss have embraced it and the Wall Street Journal in August said Switzerland expects to post a budget surplus of about 1.5 billion Swiss francs (around NZ$2 billion) this year. Its government recorded a surplus equivalent to around NZ$2.5 billion last year; its economy has been one of the best performing in Europe this year; and it has kept its public finances under close control since 2003. Swiss interest rates have been held near zero since August last year, after the central bank lowered them, and – here comes QE – flooded the money market with liquidity to weaken demand for the Swiss franc. Under this policy, the Swiss

“Inflation is a tax on savings.” balk at contributing to greenhouse emissions when they could consult an International Monetary Fund report. In May, the IMF described the SNB’s currency floor policy as “appropriate” in light of deflationary risks and limited alternative policy options. Its report noted the relative success of the policy so far, too. “The exchange rate floor, seen as credible by the markets, has halted appreciation and helped shore up the economy.” As soon as growth recovered, however, the Swiss were advised a return to a “free-floating” currency would be “desirable”. What about the “more harm than good” argument? As Joyce expressed it, the Greens wanted “to abandon sensible monetary policy and whack up the cost of living for every New Zealander”. Yes, a weaker NZ dollar would lift the costs of

Infometrics, had produced weighty arguments against QE. Another column would be required to do them justice. Suffice to say, Nolan’s fundamental objection concerns the inflationary threat from a policy of “printing money”. The Trans Tasman newsletter, addressing this, agreed inflation is a tax on savings but said a high exchange rate is a tax on exporters. The trick is to work out which is more threatening – a one percent annual inflation rate or a struggling tradable sector, especially when we continue to run hefty external deficits, yet the exchange rate has not depreciated to re-balance things as the theory says it should. When the market signals have failed – is it really best to do nothing? M Bob Edlin is a leading economic commentator and NZ Management’s regular economics columnist.

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LEADERSHIP REG BIRCHFIELD

Building legacy leadership

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compiled through a collection of large and small actions, perceptions and promises fulfilled or forgotten. Leadership and its travelling companion legacy is, more than anything, a way of thinking. It is grounded in self awareness and expressed through the fulfilment of individual hopes and intentions. Leaders mightn’t always think about the impacts they have on others but, their followers do and they invariably have to live with the consequences. That’s why effective leaders recognise the importance and individuality of people. A leader’s anticipated legacy can, of course, be overwritten by circumstance.

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urkey’s increasingly egocentric Prime Minister, Recep Tayyip Erdogan, recently announced his intention to build a stunning new mosque on a prime Istanbul city site overlooking the Bosphorus. This grand edifice will rival the Blue Mosque built in the late 16th century by Suleiman the Magnificent, then ruler of the vast Ottoman empire. I was visiting Turkey while writing this column, hence the Erdogan reference. But it also provides a dramatic, if somewhat excessive, example of what I wanted to write about – legacy leadership. Every leader, great or gormless, leaves a legacy. It goes with the job. Some big name leaders, like former American President George W Bush, have left some doozies. Others, like Nelson Mandela, leave a legacy so profoundly exemplary that it defies description. Leaders of whatever scope or scale, leave a legacy that transcends them. It immortalises their contribution to the growth or decline of the specific task, organisation, institution or nation they lead. Legacies define leaders. For that reason, good leaders start thinking about the legacy they prefer to leave early in their leadership tenure. As American leadership writers Jim Kouzes and Barry Posner wrote in their book A Leader’s Legacy, thinking about legacy encourages leaders to think about today’s actions in a larger context. As a consequence, leaders are forced to go beyond “the common practice of short-term thinking because legacies include the past, present and future”. Leaders can’t escape leaving a legacy. Their daily decisions and actions ensure it. It is a moving feast that is revealed in the way others work for, or with, individual leaders. And because it is a serial script, wise leaders consider what they want people to remember about them and develop their leadership approach and style accordingly. Leaders’ legacies are

“Every leader, great or gormless, leaves a legacy.” John Key, for example, didn’t anticipate the global financial crisis or the Christchurch earthquakes catastrophe. Whatever legacy, if any, he had in mind before those events the narrative had to change. His legacy will instead comprise the ways in which he reacts to a world different from what he envisaged. That, of course, is the mark of a really successful leader – changing strategy while keeping principles in place. Good leaders consider what they want to be remembered for. They should also ask what they have learned and what they would most like to pass on. They should also focus on how to convey those lessons. Great leaders forget the personal agenda and transfer knowledge, practices and relationships to minimise disruption when successors step up. The best leaders are unafraid of confronting their own obsolescence and realising their legacy. According to management guru Peter Drucker “there is no success without a successor”. A positive legacy is underpinned by

the same four cornerstones that secure successful leadership. It’s about character or moral example; choice as expressed through wise decisions and clear thinking; conduct or consistently doing the right thing; and consequences which are all about harvesting what is sown. Erdogan’s example of extravagant self aggrandisement isn’t obviously a ringing example of the potential for a positive relationship between leadership and legacy. If his state of mind were different he might, from his increasingly influential place at the centre of Middle Eastern politics, instead focus on playing a significantly more constructive, healing and visionary role rather than leaving a building as a testament to his time at the helm. As Kouzes and Posner also said of leaders: “the legacy you leave is the life you lead. Leaders must decide on what matters in life before they can live a life that matters.” M Reg Birchfield is a writer on leadership, governance & management. reg@rjmedia.co.nz


JAMES LEE THOUGHT LEADER

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Rapid robots & happy humans

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people decide to freight their toddlers to India for cheaper childcare, these tasks will still need to be performed locally. To the extent that many service jobs involve human interaction, they also require skills such as empathy and interpersonal communication. Good employees can see things from the customer’s perspective. At the other end of the spectrum are jobs that require creativity, ambiguity and high levels of personal training and judgement. These jobs tend to pay well, because they require skill sets that are more difficult to replicate. The job opportunities of the future require either high cognitive skills, or well-developed personal skills and common sense. In a nutshell, people will need to be either “smart” or “nice” to be successful (preferably both). Work will always be about people. It is about finding what other people want and need – and then creating practical solutions to fulfil those desires. Right now our basic assumptions about how work gets done are changing. It is less about having a fixed location and schedule, and more about thoughtful and engaged activity. There’s a blurring of distinctions between work, play and professional development. The ways that we measure productivity will be less based on time spent and more based upon the value of the ideas and the quality of the output. People will have a much better awareness of when good work is being done. We’ll see some tradeoffs. The old model of work provided an enormous level of predictability. People had a sense of job security and knew how much they would earn on a monthly basis. This gave them confidence in their ability

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any jobs are not only being outsourced to people in other countries. They are also being “other-sourced” to automated workers. Jared Weiner, a futurist at consultants Weiner Edrich & Brown, predicts we’ll see more white-collar jobs lost to software algorithms, intelligent computers and robotics. While automation has already had a significant impact on manufacturing, we are just beginning to see the impact of artificial intelligence on the traditional professions. Weiner notes that the financial services industry is becoming increasingly othersourced and is experiencing a modern industrial revolution of its own. Financial analysts have been partially replaced with quantitative analytic systems and floor traders are now competing with computerised trading algorithms. Mutual funds and traditional portfolio managers have lost assets in recent years to ETFs (exchange-traded funds), many of which offer completely automated strategies. According to MIT economist David Autor, the jobs that are currently being lost involve middle-skilled cognitive and productive activities. These tasks follow clear and easily understood procedures that can reliably be transcribed into software instructions or subcontracted to overseas labour. Autor writes that labour markets worldwide are rapidly becoming polarised and he sees a clustering of job opportunities at opposite ends of the skills spectrum. At one end of the spectrum are low-paying service-oriented jobs that require personal interaction and the manipulation of machinery in unpredictable environments. Examples might include driving a vehicle in traffic, cooking food in a busy kitchen, or taking care of cranky pre-schoolers. Unless

to maintain large amounts of debt. Our consumer economy thrived on this system for more than half a century. The new trends for the workplace have significantly less built-in certainty. We will all need to rethink, redefine and broaden our sources of economic security. To the extent that people are developing a broader range of skills, we will also become more resilient and capable of adapting to change. Luddites should take notice – computers just might push us to do work that is meaningful and enables us to become better people. The activities that make us human – thinking, dreaming, learning, communicating and feeling – are the most difficult skills to program. In a contest of “man versus machine”, people will continue to shine and outperform in these areas for years to come. M James H Lee is an independent futures consultant and writer based in Wilmington, Delaware. He is the author of Resilience and the Future of Everyday Life.

NOVEMBER 2012

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Perserverance Innovation Vision Courage


COVER STORY

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Tapping in to the creative energies of all people in NZ will make a material difference to our wealth and future as a nation. We’ve long embraced the mantra, writes Ruth Le Pla, so are we making headway?

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n August this year Catherine Taylor issued a call for courage. She threw down a challenge to human resource practitioners the length and breadth of the country to make a real difference to their organisations. How? By being far more open-minded when defining and driving the people strategies that will improve their organisations. Taylor, national president of the Human Resources Institute of NZ and Kiwibank GM HR, urged a packed roomful of HR specialists gathered for the institute’s annual conference in Wellington to think about diversity in its broadest sense. She challenged them to think about which HR strategies they should adopt to ensure they have the best capabilities in place. Her timing is spot on. New Zealand’s labour pool is shrinking. As a nation, we know we must future-proof against skills shortages. As fellow HR practitioner Julia Stones reiterated at the same conference, “there’s an urban myth that we don’t have a war for talent at the moment. But those of us who look for talented individuals know the war has just been masked by the GFC.” NZ Inc, she says, clearly needs to harness the skills of talented individuals to safeguard NZ on a global stage.

28 | management.co.nz | NOVEMBER 2012


COVER STORY

Why

DIVERSITY

REALLY

MATTERS


COVER STORY

So as a nation, are we getting any better at welcoming and tapping into the talents of every single possible person? Are Kiwi organisations really capable of looking beyond an individual’s gender, ethnicity or physical ability to see the talent within? Much evidence suggests we still struggle to cast aside our narrow views on issues such as age, religious conviction or marital status. Not all employers truly ignore whether a job candidate does, or doesn’t, have children now or maybe will sometime in the foreseeable future. Not everyone embraces the possibilities of people who think or look “different to us”. Take the fate meted out to new migrants to Kiwiland, for instance. Just how easy is it to find work if you’re not from around here? It’s not at all easy, if you listen to Anita Murdoch, a director of Wellington-based agency Forté Recruitment. Preparing her presentation for the HRINZ conference, Murdoch canvassed other people in the recruitment industry and HR practitioners embedded within organisations for their candid comments. The promise of anonymity prompted revelations that are “more along the lines of confessions”, she says. “They avoid candidates whose names they can’t pronounce. If a candidate doesn’t have NZ experience they’re put to the bottom of the short-listed pile. There’s an assumption that clients will not consider someone who is fresh off the boat. “If a candidate has obviously given themselves a Western name they are considered to be dishonest. Any previous bad experience meant recruiters judged all applicants from a particular ethnic background in the same way.” Murdoch’s informants confessed that if initial phone contact begins with problems trying to communicate with a foreign relative of a candidate, they judge the applicant by the conversational skill of the relative. They leave no message, don’t ring back and reject the applicant by email instead. “If a candidate is immigrating to New Zealand, and has never been here before, 30 | management.co.nz | NOVEMBER 2012

they perceive the risk as too great to follow through with the recruitment process. “And if they think it will be too hard to confirm the legitimacy of a candidate’s background and qualifications, and if there isn’t enough time in the recruitment process to verify every part of a candidate’s CV, the candidate is put to the bottom of the pile.” Others ’fessed up to thinking the market is flooded with skilled unemployed New Zealanders. So why give the work to a migrant? “Some recruiters considered this as loyalty to NZ.” According to Murdoch’s research, the

to leave New Zealand and give up,” he says. “There were times when I thought I wouldn’t be able to get a job or put food on the table.” Karen Justice, a licensed immigration advisor with global corporate immigration law firm Fragomen, says she’s ashamed as a New Zealander that many of our businesses just don’t get the benefits of employing migrants. While some employers are “completely unfazed” by the idea, she says these tend to be multinational companies that are used to employees moving around the globe and they have a truly global workforce.

Many of our businesses just don’t get the benefits of employing migrants. general attitude of many clients towards migrants was negative and they discourage recruiters from presenting migrants for roles. “And there’s an assumption that New Zealanders have better skills than migrants and that some migrants use our country as an opportunity to get into Australia.” Certainly, Ravi Kalpagé says it was “a struggle and a challenge” to find a job in New Zealand. Kalpagé has an MBA and a BSc. His impressive CV documents how he had already worked for three large multinationals, including the global Reckitt Benckiser group and Unilever, before coming to NZ from Sri Lanka in May 2003. Yet, when looking for suitable employment in New Zealand he was asked questions such as ‘do you know how to use a computer?’ and even if his son had a medical condition: with the underlying suggestion that’s why the family had come here. It was two years before he secured a job with Victoria University of Wellington where he is now HR manager, Victoria Business School. “There were times when I wanted

“I spend a lot of my time trying to explain to people that the immigration process is not as scary as they think it might be.” In the past eight years running her immigration practice in NZ, Justice has seen a lot of ignorance around processes. She tells the story of an employer who had been trying for nine months to fill a critical and highly specialised engineering role. “A recruiter found the perfect person: I think they were Danish with a Malaysian partner and children. Then the person in the HR section of the company said, incorrectly, they needed to have a work visa before the company could make him an offer. “The discussion went back and forward. In the end it was a stalemate. They lost that person and the job remains open today.” She suggests employers simply write a line in a contract saying, ‘this job offer is subject to you getting the necessary immigration clearance’. “For some employers, that seems to be just too hard.” She’s often told a company doesn’t want to sponsor anyone to come to NZ. “There is no sponsorship involved.” Or


COVER STORY

Targets with teeth Robert Wood.

that the process of recruiting a migrant is too complicated and time consuming. “But, done correctly, the process should be smooth and not take months and months.” Even when in-house HR staff are up to speed with the process of recruiting migrants, Bev Cassidy-McKenzie says organisations need to ensure awareness of the benefits of a diverse workforce permeates beyond an organisation’s HR department. Cassidy-McKenzie is acting GM of the Equal Employment Opportunities (EEO) Trust. She says the EEO, which works across ethnic, age, gender, ability and work-life balance issues, can help people build a business case for greater diversity within their own organisations. It also supplies tailored tools, both local and international research, and runs breakfast seminars and a wide range of other events to help build awareness of equal opportunities within business. “Diversity for us is a big topic and

When the CEO of Australian energy company Santos wanted to hike the number of its female graduate engineers, he insisted on some ‘and/and’ thinking to defuse concerns about quotas. The Adelaide-based company chief told recruiters he wanted 50 percent of incoming graduate engineers to be women (they were normally only around 10 percent of the intake). What’s more, they had to be of the same, or higher, quality than the company’s previous intakes. No compromise allowed. His recruiters not only hit this goal but have maintained the same numbers and standards ever since. How? Santos is one of a number of organisations partnering with Melbourne Business School’s Centre for Ethical Leadership on a three-year gender equality project. Robert Wood, professor of management and the project’s director, says Santos engaged in a spot of what he calls “strategic re-imagination”. In other words, it started thinking differently. Instead of simply shoulder-tapping engineering graduates from the local university, Santos recruiters spread the net more widely, selling the benefits of the Adelaide lifestyle and career opportunities to the brightest female grads from around the country. “Quotas work, in the sense that they increase diversity but they carry so much baggage,” says Wood. “So we would choose an approach that delivers the same benefits but with less pushback. We promote what we call targets with teeth among our partner organisations.”

one that definitely requires buy-in from the top of each organisation,” she says. The EEO also works with the Auckland Chamber of Commerce’s new Kiwis programme helping migrants transition into employment. According to CassidyMcKenzie, when the Chamber recently surveyed over 1000 NZ businesses it found their top three concerns about

migrants were English communication problems, difficulties interacting with customers and settlement issues. Over at the Office of Ethnic Affairs, specialist intercultural advisors such as Berlinda Chin and Craig Nicholson are helping companies square up to the realities of what they call unconscious bias. These are the hidden assumptions that NOVEMBER 2012 management.co.nz | 31


COVER STORY

impact on decision-making and can make or break an individual’s chances of being hired, accepted as a valued team member or promoted. Among other programmes, Chin and Nicholson help organisations peel back their own insights into communication behaviours that may irritate, frustrate or upset someone from another culture in an interview situation. For many job-seekers these can prove to be no-win situations. They may be seen to speak too loudly or too softly, too slowly or too fast. They may ask intrusive questions, not respond or provide minimal answers. Non-verbal cues such as standing too close, not making eye contact, proffering a soft handshake, slouching and leaning, or adopting a stiff upright position can also be misread. All can lead to assumptions about a candidate’s competence: they’re not serious about the job, lack confidence or will be untrustworthy. Julia Stones, the Auckland-based principal at HR consultancy HR2GO, describes herself as a skilled migrant helping other skilled migrants find meaningful employment in NZ. “We need to overcome unconscious bias to create cognitive diversity,” she says. “That is diversity of thinking.” The barrier, she says, is mindset. INSIDE THE BLACK BOX The same mindset may also be at work when it comes to women. After years of concerted effort to encourage, empower and negotiate women into senior business roles, progress appears to have stalled. The lack of forward momentum is apparent to ASB CEO Barbara Chapman. She told NZ Management magazine in an interview earlier this year we need to move on from justifying why women should be in senior roles and take more action. Many people are now pinning hopes of renewed progress on stock exchange regulator NZX. Earlier this year the NZX said it will require publicly listed companies to disclose in their annual reports the gender composition of their board 32 | management.co.nz | NOVEMBER 2012

Gaining social capital Justin Treagus is on a mission to help new Kiwis overcome current hurdles to employment. He’s CEO of OMEGA (Opportunities for Migrant Employment in Greater Auckland), an organisation that helps migrants get a ‘line of sight’ on a job that fully utilises their skills. “The sad reality is that about half of all new migrants to this country end up either unor underemployed,” he says. “These are stats from just before the GFC so they may have got worse.” His group steps in to help migrants overcome what he terms their low social capital. “Often, they don’t know what they don’t know: such as what salary to ask for or interview techniques suitable to the NZ market.” OMEGA has set up a mentoring programme matching migrants with Kiwi professionals. “That in itself,” he says, “helps develop greater empathy for new migrants amongst the mentors and develops cross-cultural understanding.” At last count, OMEGA had matched 878 mentors with migrants from 70 different countries. “The face and shape of talent will change,” asserts Treagus. “Diversity is not a tap that we can suddenly turn on… The best way to do business with China tomorrow is to hire a Chinese person today.” He sees a “wonderful opportunity of multiculturalism” right here on our doorstep. It’s up to us how we unleash that. “The Canadians have estimated – and I see no reason why it should be different here – that the cost of not recognising migrant skills is 2.1 percent of GDP per annum. So if NZ were to tap into the skills of its new migrants it would unleash a further $2.5 billion per year into our economy.” And that, he says, is a “pretty compelling business case”.

and senior management teams. The move takes effect on December 31. Dale Nelson, a consultant with Wellington-based Thought Partners, cites stats showing women currently hold just over nine percent of all positions on NZX 100 boards. They also have just under 33 percent of the seats on Crown company boards and 41.5 percent of NZ state sector board positions. For the past few years Thought Partners, which specialises in strategic planning, change management and leadership training services, has been working on a mentoring project with former EEO Trust CEO Philippa Reid. The Cross-Company Mentoring Programme for women fed into the EEO Trust’s ‘A place at the table’ initiative to increase the number of female directors on NZ boards. It aimed to lever open opportunities through mentoring senior business women. Aspiring women directors were given

direct access to the broad and confidential counsel of experienced board directors and helped to understand the cultural subtext of the boardroom in general, and the role of director in particular. In short, they were given a glimpse inside the black box closed environment of the boardroom. “Getting access to what goes on in the boardroom and what behaviour is expected is extremely difficult,” says Nelson. “The nature of this personal relationship allowed the open discussion and conveyance of messages about how directors think and act, and the appropriateness of certain positions or behaviours.” As a side effect Nelson says she hoped to raise the awareness of the mentor to the nature of the barriers that women face in accessing governance roles. “There is some international evidence that male and female directors think differently about the nature of ‘the problem’,” she says. “Male directors attribute


COVER STORY

Photo: thinkstockphotos.com

Pink or blue? Contrary to what some people may think, opportunities for a woman to develop her career are not linked to the number of training programmes she may attend. Robert Wood, a professor of management at Melbourne Business School’s Centre for Ethical Leadership, says women tend to go on the same number of training programmes as men. To his way of thinking, career progress is really about whether work projects are allocated in a way that is developmental. “In a law firm for example, do the women get what are called the blue files – where they get interesting tasks and meet major clients – or do they get the pink files which are the routine administrative work? Someone’s far less likely to get a promotion if they haven’t worked on enough blue files.”

the gender disparity on boards to ‘the pipeline problem’ (60 percent of male directors), whereas most female directors (70 percent) cite ‘closed, male-oriented networks and lack of access’.” Across the Tasman, at Melbourne Business School, professor Robert Wood has been partnering with industry organisations on a three-year large-scale gender equality project. His report, “Resilience: Women’s fit, functioning and growth at work”, outlines the indicators and predictors of success for women in business.

“The problem is much more complex than just saying we need more women at work,” he says. When it comes to ‘fit’, for example, his research examines whether an organisation provides a setting within which a woman would want to work. Low-level sexist climates, which often allow sexist jokes, are one of the most robust predictors of women’s ability to fit in, function well and grow in their careers, he says. A ‘just joking’ culture can be particularly undermining. “Someone might

jokingly say, ‘get us a cup of tea, love’ and the woman may say, ‘I don’t think that’s appropriate’. The man’s next response is often to say he’s just joking. The double whammy is that not only does he invoke a stereotype threat to her but he then points out she has no sense of humour. And if the rest of the culture supports that it undermines her performance. “One of the big insights to come out of this research project for me personally – having studied management for 19 years – is just how negative that impact is.” Wood’s studies also demonstrate it’s not the absolute number of women in a company that’s important. “It turns out it’s the number of women in a specific area: either in a particular NOVEMBER 2012 management.co.nz | 33


Photo: thinkstockphotos.com

Breaking down the barriers Anita Murdoch, a director of Wellington-based Forté Recruitment, challenges business to take active steps to break down some of the barriers to job entry for new migrants. “Be a bit courageous,” she says. “Give someone an opportunity that you wouldn’t normally give it to. Explore options to engage a migrant when the opportunity presents itself.” She encourages use of telephone screening and comprehension assessments to break down the common misconception that someone with an accent doesn’t have a good understanding of the English language. “And lead by example,” she says. “Many HR and recruitment teams are starting to employ migrants within their own teams and this is encouraging other functional areas to do the same.”

role, a work unit or a team. So there’s a world of difference between being in the vanguard – being the one crusading woman symbolically on a board – versus there being, say, four out of 10. “We don’t know what the tipping point is but there’s clearly some point at which if you have a critical mass of women, or any minority, the culture starts to change. The cost of sexist jokes goes up because it’s not just one person saying they disagree with them: it’s more widely spread. Then there seems to be some cognitive change process.” As a result, Wood says ANZ, one of the research group’s industry partners, is now switching its focus to specific areas. “They’re targeting only places where they can put in three or four women out of 10 to create critical mass and build success stories.” IT’S ALL ABOUT ACCESS Meanwhile, Be. Accessible chief executive Minnie Baragwanath contends that 34 | management.co.nz | NOVEMBER 2012

New Zealand businesses are starting to discover the power of what she calls the “access economy”. Set up just last year under the Be. Institute umbrella – a social enterprise partnership between Auckland Council, AUT and the Auckland District Health Board – Be. Accessible is a nationwide accessibility movement helping join the dots between accessibility, employment and wider economic success. Some 20 percent of New Zealanders are living with a disability. And it’s estimated that around 43 percent of those of working age are either under- or unemployed. Studies put the opportunity cost of this workforce exclusion alone at around $11.7 billion. More to the point, by helping businesses become more accessible to people with disabilities, Baragwanath says her group’s Be. Welcome initiative is “already creating a new customer group and a new way of doing business that is not only benefiting their bottom line but also

generating an entirely new economy”. Be. team coaches can check out and rate the accessibility of organisations, and then help plug them in to “access customers”. These may include older people, people using wheelchairs, parents pushing a stroller, or people with a hearing, vision or mental health impairment. Be. Accessible stats show the potential for growth is huge. In the 65-plus age bracket alone, half of all Kiwis are thought to have a disability of some sort. Fast forward 18 years to 2030 and a quarter of all Kiwis will be part of that age group. Green Party MP Mojo Mathers likes to say she has “700,000 reasons to advocate” for equality. That’s how many New Zealanders live with a hearing impairment. When she first walked into the Beehive to take her seat after last year’s general election she became our country’s first deaf MP and only the fifth deaf MP in the world. Her high-profile role ensures she remains a catalyst for change. Mathers says people with disabilities often raise with her how hard it is to convince employers they can do a job. “The level of employment of disabled people with skills and qualifications is


COVER STORY

about the same as that of able-bodied people who have no skills or qualifications,” she says. “That tells me workplaces may be missing out on getting some of the best people for the job.” Parliament, she points out, is her workplace and her selection raised debate about what inclusion and diversity in the workplace really mean. She uses an electronic notetaking system for debates in Parliament and, for keeping in touch by phone, taps in to the

Minnie Baragwanath.

NZ Relay Service which provides services for people who are deaf, hearing impaired, deaf-blind, or have a speech disability. She champions the message that inclusion benefits everyone: often in unexpected ways. Conducted through the NZ Relay Service, Green Party conference calls have become more smooth and productive, she says, as people have to speak more slowly, not interrupt each other, and get to the point more quickly. And at face-to-face Party meetings, chairs are now arranged in a circle and the lighting has been improved. This makes it easier for

her to lip read. Meetings are more structured. It is, she says, a win-win for everyone. “From an employer’s perspective, the first step is often the hardest. Once you’ve become an inclusive workforce, you wonder what the problem or concern was all about.” Meanwhile, in a packed breakout session at the HRINZ conference, Leeanne Carson-Hughes sums up a discussion on talent management with a piece of advice of her own. She points out that she’s the only “girl” on the senior management team at Christchurch International Airport. “Every now and again there’s a defining moment in your career,” she tells the group. “You’ve got to decide whether to take up the opportunity that’s there,” she says. “So be courageous.” M See also, The Director, page 74, “Championing women on boards”.

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The future Four business leaders talk about their very different strategies to identify and develop talent within their organisations. By Vivienne McLean

Focusing on global mobility

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lobally, AECOM provides professional, technical and management support services to markets ranging from transportation and facilities through to environmental, energy, water and government, and employs some 45,000 people around the world. That global network provides unique opportunities for the staff of AECOM in New Zealand, and managing director Dean Kimpton sees it as one of the key factors driving future talent identification and development. “We have a huge number of opportunities for people to work on short- or longterm assignments anywhere in the world. It’s appealing for a lot of our people and gives us a very good look at how they grow in response to change – different hierarchies and cultures, language, different ways of doing things – and their potential in the business. The global mobility of our people will be increasingly important in the way we identify and develop talent,” he says. Over the past three to four years the company here has put a lot of emphasis on defining what sort of people it needs to lead the business into the future. Kimpton says understanding what those candidates look like – as in who they are – makes a really important difference. “When I’m involved in interviews I always look at their character, whether they will fit the culture and if they have the competencies we need, either demonstrated or potential. Often it’s presumed

36 | management.co.nz | NOVEMBER 2012

Dean Kimpton, MD, AECOM NZ that talent means the leadership component. I work on the assumption that all the talent we’ve got is important, although not all talent is equal.” Kimpton says in recent years the company has put more rigour into assessing performance and potential, including an online system for learning and development, and personal assessment that looks at both how the individual is performing and their potential. The resulting talent index helps inform development decisions and also leads through into the reward and recognition part of the business. “As well as talent identification, there’s also readiness,” he says. “You’re looking to create opportunities for people, but you need to be able to understand when they’re ready to take those on because you don’t want them to crash and burn. How people respond to opportunities or to being thrown in at the deep end is really important in identifying their performance and potential.” AECOM NZ has a strong learning and development programme that allows managers to see where people fit and to identify talent from an internal perspective. “One example is our graduate programme that takes university graduates through a series of skill development programmes. These could include every-thing from our quality systems and how we deliver projects, through to how we manage

risk, and people skills such as interaction with clients and how to build teams. They work together as a group, typically in one to two day sessions over three years. It’s been of huge benefit to the business.” Any employee with three to 10 years’ experience can join AECOM NZ’S HYPE (Helping Young Professionals Excel) group. “These people want to make a difference and we provide them with opportunities to step up and lead,” says Kimpton. “The group organises training and development events, encourages and supports social and professional networking, and assists with the graduate mentoring process. They also assist with or lead different business initiatives. In 2012/13 the HYPE group is responsible for the innovation/ new ways of doing business initiative in the Strategic Plan.” AECOM also puts staff through internally-developed team leadership development programmes, which provide another opportunity to look at leaders’ and developing leaders’ skills and abilities. “There are a lot of tools for identifying talent that help automate the process but I don’t think you can ever fully automate talent identification, recruitment and development. Ultimately what works best is culture. You have to create the right culture of opportunity where you can take risks and do things – that is the best way to develop your talent.”


of talent Identifying leadership success Kate Daly, group GM, HR, Fletcher Building

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ith 20,000 employees and operations spanning 40 different countries, group general manager, HR Kate Daly somewhat wryly describes Fletcher Building’s talent management process as “slightly more complicated” than that of most New Zealand businesses. The past three to four years have seen considerable change in the business and the competitive landscape in all the company’s markets. As a result Fletcher Building is currently redesigning its talent management process, with particular emphasis on executive career planning and development. As a first step the company has identified the key leadership practices it requires, and retained international business psychologists YSC to assess senior managers’ capabilities and competencies against its long-running and extensive international database of successful global leaders. “You can’t do any of this in isolation from the business,” emphasises Daly. “It has to align with the business strategy and with the global market. We’re doing a lot of work on identifying executive competencies and capabilities so we can be more on the front foot with their career development and planning.” Daly says general managers and chief executives have been interviewed, markets examined, and the practices required of its leaders have been identified. “Then we’ve set out the principles from which our talent management

framework will develop: differentiation, sustainability, transparency, accountability and integration. “We’ve assessed all our high potential general managers and chief general manager, chief executive and CEO roles. We want to be very clear in our thinking about what success as a leader looks like within Fletcher Building, by level and type of role across different business units because that forms the basis of how we identify and develop talent. “Strategic initiatives that feed off this will be our succession planning, leadership development and targeted outsourcing... so when we go to recruit [externally] for leaders and managers we know exactly what we’re looking for, because we know exactly what we need for the next 5-10 year journey.” Daly points out that planning a career for someone in their mid-20s involves around 25 years of career management, and an integral part of building a talent pipeline is understanding what experiences someone aspiring to be a chief executive needs to have. “When YSC has finished its assessment of our general managers and CEs we’ll be able to benchmark our internal capability and talent against the [global] market, and identify the gaps where we’ll focus leadership development. “Leaders will have a very tailored individual development plan based on their career aspirations. It won’t just be ‘go off and do this leadership programme’, it’ll be specifically tailored against the

competence and experience we need at CE level assessed against where they are now. The feedback we’ve had is that our leaders want that clarity – what do I need to do, how do I need to develop and what roles do I need to move into to become a successful CE.” Sarah Naude, formerly senior organisational development consultant with Telecom, has come to Fletcher Building to spearhead the redesign of the talent identification and management process. She says over the next two years the simplified, more strategically aligned leadership development framework will permeate Fletcher Building, from emerging frontline leaders, through to regional and general managers. While elements will differ, the objective will be to offer people that show potential early on opportunities for accelerated development and breadth of experience. This will build a very clear picture of the talent pipeline globally, and also the best development roles in FB business units internationally. “One of the challenges we have in New Zealand is that we operate in a global market but a lot of our leaders don’t have a lot of global experience,” says Daly. “The opportunity for us is to make sure we utilise and leverage off our international footprint to develop our leaders. We can pick a high-potential, high-performing frontline manager and say there’s an opportunity for you to go and work in our laminate plant in China or move into the UK.” NOVEMBER 2012 management.co.nz | 37


TALENT MANAGEMENT

Staying flexible Kim Gilkison, director and operations manager, ITL

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shortage of people in the engineering industry, courtesy of worldwide industry retrenchment in the ’90s, means companies such as ITL in Taranaki are often forced to compete globally for talent. All the more reason to attract and nurture local talent where possible, as director and operations manager Kim Gilkison explains. “Because we’re a growing company, we don’t have enough talent internally to meet our needs, so we bring people in from outside the company, the industry and from overseas. We’re developing our younger engineers, bringing people in as university graduates, and we also work with the Western Institute of Technology at Taranaki (WITT), with cadet designers coming through their programme. Ultimately, we would love to get all of our resourcing locally.” ITL employs around 125 staff, including process, mechanical, instrument and electrical, civil and structural 38 | management.co.nz | NOVEMBER 2012

engineers, plus a design office and a project team. “Project work is cyclical, so while we certainly try to ensure we have continuity of work, it’s not always easy because of the workflow,” says Gilkison. “We need to keep a balance between the disciplines, while trying to deal with the peaks and minimise the dips. So within reason we try to have people within the company who are as versatile as possible. They seem to prefer that too, because it gives them variety.” To Gilkison, managing the talent pipeline is akin to working with a living organism. While helpful, processes and structures are not the sole solutions to ensuring supply and demand dovetail effectively. “It’s good to be proactive but this market is quite dynamic. We can project we’ll need a certain number of people but all of a sudden might get a job that requires that number plus 10.” When it comes to employment, Gilkison says ITL tends to focus on the

person rather than the position. “So if you’re working for us you won’t get a hugely detailed job description.” She says ITL tries not to pigeonhole people and there’s a degree of “blurriness” in job descriptions and roles, which she sees as healthy. “We’ll satisfy ourselves that you’ve got the academic requirements and the knowledge, and you don’t necessarily have to have the industry specific skills – if you’ve got the right attitude. Attitude and motivation are really important and also the fit with the team and the way you work.” Gilkison says people with the potential to diversify tend to identify themselves by virtue of their performance. “We’re not particularly hierarchical in our structure. All our directors work within the company and we’re a completely open plan office so there’s no distance between someone coming in to the industry and someone who’s been there a long time. Support and knowledge are easily accessible to everybody. That also tends to mean it’s easy to identify strengths and develop them.” ITL’s annual review process looks at each individual and where they want to be in a few years. People who show ability are placed in roles that extend them further. “If someone applies for a particular role and we find they’re much better suited in another, we’ll find ways to develop that,” says Gilkison. “We have pathways to try to find people’s strengths.” Gilkison cites the example of ITL’s health, safety & environment manager who initially arrived in the company to answer telephones for a week, and was still there after a month or so. “We needed her so she just carried on doing a really good job. Then I discovered she was doing an environmental science degree. So we developed her role into an HSE position, got her involved in the legislative and the work side of it and from one week’s work it’s developed into a career. She’s been with us for five years now, and completed her degree while working fulltime for us.”


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TALENT MANAGEMENT

Building trust through challenge Hugh Morrison, CEO, Arrow International

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utdoor experiences have long been used to build company ésprit de corps but project delivery company Arrow International takes this further than most. The company sees its culture as a defining – and critical – success factor in the business. Underpinning that culture is regular participation in challenging outdoor activities, in which attitude and performance are used to determine people’s fit, and potential for development. “It’s not just a question of creating a nice environment – we do it because culture is critical to us,” says CEO Hugh Morrison. “Our service offering is one where trust, communication and challenge are powerful attributes that clients are seeking from us.” Morrison describes the construction industry as typically quite conflict orientated, with transactions defined by contract. Arrow International is offering a much more upfront, trust-based relationship. “But to sustain that position you must have people with very high personal integrity, and the skills to communicate

40 | management.co.nz | NOVEMBER 2012

that. The culture of the person has to be one that responds to challenges and uncertainty, and takes responsibility rather than pointing fingers. Teamwork is critical.” That sense of trust and teamwork is built and tested in challenges such as white water rafting. “When you’re trying to hold a line, you’re relying on the other person. You’re thinking, how can I get around that obstacle and safeguard other people – it’s all practice for what happens in our jobs,” says Morrison. In terms of talent development, people with a strong culture fit come to management attention first, and are developed faster than the mainstream. Morrison acknowledges the risk in focusing on physical performance as an indicator of cultural fit and potential. “Yes, when you push hard for a certain type of behaviour you can exclude people who may fit on a whole range of other attributes. It’s a tricky balance. For example, as part of our induction process everyone will go away on a camp and there’s always

a physical expression somewhere in that. “Recently we had people jumping off waterfalls. I would say about five percent would come out of something like that saying they didn’t like it. There’d probably be about 20 percent who at the time didn’t like it but afterwards feel absolutely bullet proof and uplifted. “Many of the five percent won’t make the journey, but it’s not so much the outdoors, it’s the full-on nature of our culture and an indication they’re not really fitting. But others, even though they might be a bit unfit and they’ve been pushed outside their limits, have got a bunch of other attributes and may get through. If you’ve never jumped off a waterfall before then the journey is much harder and if you succeed you’re recognised for that.” Morrison cites one cadet who stood out not only for physical strength during a number of outdoor experiences but also for his calmness. “He shot through the cadetship very quickly and would be one of our youngest project managers ever,” says Morrison. “He’s been identified as somebody for the future, so he’s on an accelerated personal development path and we’ll continue to put challenges in front of him that stretch him.” It’s not just for the young. Morrison says there are also plenty of examples of older people who have made a commitment to get fit and whose performance has lifted as a result of seeing themselves and their lives differently. Arrow is about to launch a new talent development programme to pull through people who deserve to move faster. The primary responsibility for people’s development normally rests with their business unit manager. This programme will be run by the CEO and corporate HR. “We will look deep into the business to identify the people who have enormous potential and make sure their personal development programmes are more robust and perhaps get a bit more investment than they might do just within the branch budget,” says Morrison. M Vivienne McLean is a freelance business writer.


HR METRICS

MEASURING UP B

Strategic Pay’s latest HR metrics survey benchmarks everything from recruitment and training, to sick days, absenteeism and staff turnover. Jarrod Moyle unravels some of its findings.

enchmarking HR metrics provides a very real indication of the effectiveness of HR programmes. It also allows HR professionals to communicate with senior management the impact of their activities in real dollar terms. Now, in many organisations, HR professionals have redefined their role to be a true strategic business partner. They see their role as equipping people managers with the skills to take responsibility for recruitment and performance management initiatives while ensuring the organisation has the right people, with the right skills to achieve its strategy. As a result, more is expected of HR managers and CEOs are looking for evidence of the effectiveness of the various initiatives for which HR has overall responsibility. To demonstrate that it’s not just about doing the right thing by employees, HR departments have begun measuring their activities to demonstrate their effectiveness. These measures provide relevant and timely indicators on organisational,

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divisional and human resource activities. Staff turnover rates, absenteeism costs, time to hire, engagement scores, cost to hire, training costs are all examples of common HR metrics. They can all be useful to identify problem areas where additional focus or investment is needed or to provide crucial information to find, develop, retain and reward the right employees. For any organisation, the first step is to determine its current situation, then track improvements in HR metrics from year to year, and finally compare results with other similar organisations. Strategic Pay recently released its 2012 HR Metrics survey to help organisations benchmark their HR activities. The results confirm some of the commonly held beliefs and rules of thumb around people management, and create some interesting points for discussion. Now in its second year, the survey includes data from 112 organisations with breakdowns by revenues, employees and sector. How many HR people should you have

in your organisation? This is a common question, and while the correct answer will depend on a number of factors, the common guide has been one HR person for every 100 employees. Our survey has shown it’s more likely to be one for every 50 employees. The largest and the smallest organisations tend to spend a larger proportion of their total revenue on salaries, and not surprisingly, the private sector spends more on incentives. Interestingly, the not for profit sector proportionally provides the most in benefits with an average of 6.8 percent of total salary costs spent on benefits. When it comes to voluntary turnover, small organisations, in terms of employee numbers, had the lowest turnover, whilst large organisations had the highest. The average voluntary turnover rate for all organisations was 11.4 percent. But whilst turnover is higher, large organisations also had the longest average tenure. This apparent paradox is partly explained by the fact that large organisations had a much higher voluntary turno-


HR METRICS

ver in the first 12 months, indicating that those who leave, are likely to do so sooner in large organisations. Large organisations also take longer to recruit staff, but small organisations spend less on recruitment. Across all organisations the average time to hire was 33 days. Large organisations also tend so spend less on training based both on total employees and on a per employee trained basis. For those who received training, the cost was typically $2000 per employee. There is very little difference in sickness and absenteeism based on organisation size, however, private sector organisations have a slightly lower average number of days lost with a median of four days per year, per employee. Finally we asked participants to provide an indication of their organisation’s recent financial performance and engagement survey scores to examine the

connections between various HR metrics used in this survey and organisation performance. We compared the average score for those that reported engagement scores in the top quarter of their survey against those that reported scoring in the bottom half of their particular survey. Likewise we compared those organisations that reported “outstanding” financial performance against those that reported “poor” or “below target” financial performance. Surprisingly, this analysis has shown very little distinction between the top performing and lowest performing organisations on a number of HR metrics. Highly engaged organisations had longer average tenure, and those which reported outstanding financial performance spent less on recruitment and had a lower cost of absenteeism. For total cost to hire and training cost per employee, there was very little

difference between those with the best and worst financial performance and the highest and lowest engagement scores. When it comes to voluntary turnover, high performing organisations fared slightly better with turnover three percentage points lower. While this might not seem a huge difference, if you are an organisation with 200 employees for example, an additional three percent employee turnover (six people) per year equates to a cost of $24,000 to the organisation based on the average cost to hire of approximately $4000 per role. Add to that the cost of lost productivity while the role is vacant, the cost of training a new individual, the time to become fully effective in the role, and even a small improvement in turnover can result in significant cost savings. M Jarrod Moyle is manager executive reward at strategic remuneration and performance management solutions company Strategic Pay.

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NOVEMBER 2012 management.co.nz | 43


COACHING

Tough Angela Neighbours.

stuff

Transformational thinking can help executives cut through the tyranny of the urgent to focus on what’s truly valuable for both themselves and their organisations. It’s not for the faint-hearted. So how does it work?

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ransformational thinking is gaining traction as a key to unlocking leadership development and improving business performance for beleaguered senior executives faced with mounting pressures on business and personal life. Transformational? It’s been under the radar for about 40 years but now emerging as the critical ingredient to cognitive development. A significant first step is taking quiet time, thinking of different and creative ways to plan for the future and solve issues of the day. Angela Neighbours, a director of executive development and coaching company, ilume International, and master coach of the International Coaching Community (ICC), explains the transformational journey is not just about focusing on business growth. It is also about taking into account the impact of the work environment and social emotional behaviour. “Transforming ourselves is tough stuff.

44 | management.co.nz | NOVEMBER 2012

Leaders need guidance and support to make this inner journey. It can be threatening and naturally resisted,” she says. “Every day we see executives becoming stuck in the tyranny of the urgent which has become a distraction. Emails, phone calls, back-to-back meetings, travel and client interaction can suck up precious time. Instead, executives need clarity, efficiency and an ability to be calm, to be rigorous in decision making. They need to ask what is going to benefit the organisation, their people and themselves.” Neighbours explains: “Many executives know they think well. However, their thinking and problem solving is based on knowledge of what might have been successful in the past. But now in a world of complexity and busyness, time pressure and time paucity bring added stress. “ilume assists with the transformation by benchmarking a person’s position across all three components – cognitive thinking ability, emotional stance and the work environment. This is a research-

based global product that results in a 16page report that is evidence based. This leads the plan for development.” Added to the dilemma of everyday pressures, senior executives are also challenged by succession planning and identifying future leaders of the business. “In a country where we are used to ‘stepping up’, people are asking what we are doing to develop our leaders of the future and how someone can hold themselves accountable for that.” Neighbours says with the increasing complexity of big business, leaders can’t know what is happening day-to-day across the entire organisation. Ninety percent of the success factor of their role is the ability to develop others, hire well and create career pathways for people. “Being clear on where you are going and embedding a culture is the answer. What could almost be described as overcommunication at every part of the journey within an organisation is critical.” Neighbours, her business partner


COACHING

Shifting behaviour At 48, Greg Warren is a “young” transformational thinker. General manager of Orica’s mining chemical systems division, he’s directly responsible for 100 staff and a global, annual revenue of $1 billion. His time with the company spans 24 years. He commutes regularly between Sydney and Melbourne and across the world, much of the time engaging with his core team and others, developing his people and the business. His executive coaching journey started in Wellington when general manager of Dulux NZ in 2005. “I used to lead teams. I expressed my views. I believed and often acted as though I knew all the answers.” With his introduction to executive coaching, Warren realised that for the business to prosper he had to shift his behaviour from one of just giving answers to building better outcomes through deeper thinking of his team. Today, his message is plain and simple: “What I have learnt most of all is not to be constrained by past thinking but to be creative, to explore future orientations.” The journey to transformational thinking enabled Warren to under-

Raechel Ford and world-accredited coaching team, are breaking new ground in spreading the message of transformational thinking to an expanding blue chip client list of global and local companies in New Zealand and Australia. Combining nearly 40 years of corporate and coaching experience, Neighbours, Ford and their team are working with “intuitive” mind and evidence-based developmental coaching which brings out what ilume describes as the “hidden dimensions”. “This embodies the difference between the horizontal and vertical matrix of

stand himself, and his handling of, and impact on, various business situations. He’s learnt to trust his staff and to focus more on the future. For their part, staff have had to understand their sphere of influence and take responsibility for day-to-day business. He recalls, “the management team decided we would not get involved in any day-to-day decision-making for six months and focus entirely on decision-making and strategy beyond the annual financial horizon. “It took a while but the change in the culture was fantastic. The business didn’t fall over. In fact, we unearthed new leaders who embraced their increased responsibilities. A big part of it was providing clarity, trusting my staff and having trust in myself to let go. “Now I request my team to understand that it is okay not to agree with me, and encourage openness. They don’t have to pretend. It’s okay that they have a different way of leading. But I have told them if they don’t feel comfortable with where they’re going, we can work it out together. “Today, executive coaching for me is an ongoing journey of exploration and personal development. It truly has been transformational. Some of the coaching principles I have learnt from ilume I have been able to pass on to my team.”

behaviour and development,” says Neighbours. “Too much time has been spent on horizontal development – our competencies – and very little on vertical development – adult developmental stages. “The methods for horizontal and vertical development are very different. Horizontal development can be transmitted by an expert – a mentor, teacher or professor – while vertical development must be earned for oneself. “Not only do executives need to grow and change, but they must also change within themselves. The shift they are looking for in their organisations begins

with themselves and a fundamental change in their behaviours, minds and hearts. Their consciousness must shift in order for them to be able to see how to act in a way that can address the challenges of the times.” Neighbours describes “self calibration” as the important tool for leadership development. “Working with inner obstacles allows us to inquire deeply into the source of self limitation and unconscious behaviour that does not support what we have chosen. Often we are looking for superficial fixes which will not work for the long term.” M

Looking for a middle/senior leadership learning solution that: • addresses leadership behaviours and technical skills • supports changes to leadership practices • is cost-effective and work-friendly?

Look no further than our 2013 Leadership Development Programme Phone Kyran Newell or Nicky Trainor on 03 943 2373

See us on the web at www.development.org.nz

NOVEMBER 2012 management.co.nz | 45


FACE TO FACE

The

why

of work Business leaders who tap in to employees’ reasons for fronting up to work each morning can unleash deeper levels of engagement and help create more energised workplaces.

W

hen earlier this year Marjolein Lips-Wiersma and Lani Morris published their groundbreaking book The Map of Meaning, they were sharing decades of study and insights into one of management’s most vexing questions. Why do some workplaces hum like beehives while others appear stuffed to the gills with reluctant clock-watchers? Lips-Wiersma is an associate professor at the University of Canterbury’s Department of Management. Morris is an organisational behaviour practitioner and the founding director of the Holistic Development Group. Their research shows people yearn for personal meaning though four key ways. We all want unity with others and an opportunity to provide service to them. We also want to be able to express our full potential and an opportunity to develop our full selves. In The Map of Meaning: A guide to sustaining our humanity at work, LipsWiersma and Morris posit that leaders are

46 | management.co.nz | NOVEMBER 2012

routinely destroying employees’ ability to fulfil themselves in these ways. Many business leaders try to solve the problem of lack of engagement, for example, by setting up yet more systems with which employees must comply. Not surprisingly, many of these culture, vision and engagement management initiatives alienate people even more. Yet leaders who can help create what Lips-Wiersma and Morris call meaningful workplaces are rewarded with greater productivity. Their people are more creative and have a deeper sense of accomplishment. There’s less stress, less absenteeism and more commitment to work. Challenges are faced constructively as people find energising ways of working together on what is important. Marjolein Lips-Wiersma explains. How does meaningful work help business leaders better manage the talent in their workplaces? Meaningful work answers the question of

Marjolein Lips-Wiersma.

why we do something. It addresses the point or purpose of our activities and asks “why is this worthwhile”? When we look for talent, we look for skills. But we also look for a deep engagement as people who have this are more likely to collaborate, innovate, look for multiple solutions to a problem, and seek out the best one rather than the easiest. These are the people who take ownership and are the people you want. Ask current and potential employees not only how but also why they do what they do, and look for that spark, because when people know why they do something, they can answer almost any question around ‘how’. Isn’t meaning a luxury that we can’t afford? This question assumes that we can do away with meaning or take it off the shelf when it benefits the organisation. However, our research shows that people, by their very nature, already know what


FACE TO FACE

BEING

es

SELF

OTHERS

REALITY is meaningful and adHow do we connect just their discretionary personal meaning effort accordingly. to organisational Developing Unity with the inner self others The human need vision? for meaning is inWe always start with escapable. When inviting people to Inspiration people stand in a write their own verplace of meaning sion of the map. So, Expressing Service to full potential others they reclaim their for unity, for examstrength and become ple, one person may of se nc a lf a t responsible. speak about “being with nd circums After the Christchmy mates”, another about urch earthquake, we saw that “high quality connections”, anDOING people naturally sought (comm) other about “supporting each other”. unity and found ways to serve. We saw Organisations often end up using workmen as well as artists rejoicing in words that are too abstract or too corpoexpressing their full potential in fixing, rate to mean anything to anyone. When removing and beautifying things and people have the map they can see what that people’s inner selves were developed they share with others (unity makes work as they behaved decently and responsibly. meaningful) and what personally comThis is not a luxury, it is the very fabric of mits them to this meaning (working with human organising. their mates). This creates individual and collective responsibility for creating and You talk about meaning in a very maintaining meaningful work. concrete way, so you are not talking about “the meaning of life”? You write that leaders routinely Of course we are. Victor Frankl, a psychia- destroy meaningful work. How? trist and concentration camp survivor, Leaders do not get out of bed in the found that people function much bet- morning to destroy meaning, but it does ter when they have an answer to, “what indeed happen too often. Meaning can be makes my life worth living?” When we ask destroyed unintentionally. people what makes their work worthwhile Leaders too often try to go it alone. You we find the same dimensions of meaning may think – or have learned in leadership always emerge regardless of worldview or training – that you should provide meanoccupation. ing. Meaning requires and encourages participation. Ask people at the coalface what If we know what is meaningful, is meaningful to them; don’t tell them. why do we need a map? Leaders ask too often how they can People often talk about meaning but in a move people. They may use a variety of, negative way: “I don’t see the point of this often disconnected, techniques, such as meeting, paperwork, this course.” As a re- various forms of engagement, culture or sult they withhold their effort or ideas or leadership training to answer that quesfind ways to distract themselves at work. tion. A more useful question might be The map makes meaning visible. “what obstacles can I remove so people When it is made visible, it becomes le- move naturally?” gitimate to ask “why are we doing this?” The next layer of managers often Does it create more unity, more service, translates leadership objectives into more more opportunities to use our talents, measures, more bureaucracy and more less conflict between our personal and meetings. Be clear that these need to be organisational inner selves? This way it kept to a minimum at all times because can be taken into account in decision they take people away from the core tasks making and we can create more of it and which give meaning to their work. stop destroying it. Leaders too often assume that they are

clear on why change needs to take place. Yet change initiatives are often started and abandoned in quick succession. This leaves employees with the feeling that nothing really matters. If you do not have an answer to the question of “what is the point of this?” or cannot communicate that answer clearly, ask yourself if the change is really necessary. Leaders too often create a context in which inspiration and reality are separated. This way, ideas can be off the planet and when reality intrudes it becomes negativity. It’s important to work skilfully with both as they address both the human need for hope and the human need to be real and not pretend. What practical steps can business leaders take? It is precisely because meaning is often unintentionally destroyed that it needs to be kept visible. Start by simply putting a poster of the map of meaning in your office and check your decisions against it. Does decision X create or destroy your employees’ ability to experience service, unity, and the development of inner self and full potential? Does it allow for times to be and reflect, and time to get things done? Does it enable people to look after their own needs while they help others? Does it address both the human need for hope and the need to stay real and grounded? You can ask yourself and your employees how some standard organisational practices such as performance reviews can become more meaningful by evaluating them through the map. You can use it as a guide to have a meaningful conversation with your teenage kids or you can do a bottom up vision and values exercise using the map. The map is used in diverse areas such as policy, curriculum, and board and leadership development and has proven to be a very useful tool for those who want to go deeper without getting lost. Meaningfulness speaks to the depth of being human and it is here that we find constructive contribution, active participation, integration and responsibility. M NOVEMBER 2012 management.co.nz | 47


GUIDE EMPLOYERS AND MANUFACTURERS ASSOCIATION (NORTHERN)

NOV 2012

PROFESSIONAL DEVELOPMENT

EDUCATION & PROFESSIONAL DEVELOPMENT PROGRAMMES

0-7-839 2710, lotta.bryant@ema.co.nz • Lucila Marquisio (Portfolio Manager), Customer Service, 09 367 0961, lucila.marquisio@ema.co.nz

COURSES National Certificate in Business (First Line Management) Level 3

At EMA Learning we strive to help you and your people succeed and believe that our relationships are built on experience, excellence and innovation. We take pride in working closely with our community and we continue to invest in interactive programmes that bring new skills and opportunities. EMA Learning offers courses of excellent quality in a wide range of topics covering Management, HR, Health and Safety, National Certificates, Personal Development and Leadership. Our trainers are all highly knowledgeable in their fields of expertise and are skilled in presenting the course information. For those with unique requirements, we are able to deliver Tailored Training at your premises, with guaranteed relevance and reward – a programme is written specifically for your business needs and situation, and delivered at your place of business. With over 10,000 attendees on our courses, conference, events, e-learning and tailored training, we are New Zealand’s business trainer of choice. Train with us today, use what you learn tomorrow and see your business grow. Private Bag 92066, Victoria Street West, Auckland 1142 159 Khyber Pass Road, Grafton, Auckland 1023 Other campus address: Hamilton (new site opening soon, see our website for details) Email: learn@ema.co.nz, Website: www.ema.co.nz Ph: 0800-800 362

KEY PERSONNEL • Deborah Law-Carruthers (Portfolio Manager), Management, Business Productivity, Legislation, HR 0-9-367 0947, deborah.lawcarruthers@ema.co.nz • Kevin Chambers (Portfolio Manager), Tertiary 0-9-367 0958, kevin.chambers@ema.co.nz • Craig Garner (Portfolio Manager), Health and Safety, Employment Law, 0-9-367 0907, craig.garner@ema.co.nz • Lotta Bryant (Portfolio Manager), Export, 48 | management.co.nz | NOVEMBER 2012

SUITABLE FOR: Supervisors, Team Leaders, Managers, HR Staff. COST: Member: $2500+gst, Non-Member 3000+gst NZQA REGISTERED: Yes DURATION/ENROLMENT: Taught over 4 blocks of 2-day workshops over 4 months. AVAILABLE: Dates for 2013 are available in Auckland SPACES AVAILABLE: Maximum 18 per class – we can add another class if numbers dictate. KEY TUTORS: An EMA learning tutor. FORMAT: On-site at EMA. We have excellent classroom facilities and the cost includes morning tea, lunch and afternoon tea. DESCRIPTION: Improve your one-on-one communication skills to become a stronger leader and help unite employees.

National Certificate in Business (First Line Management) Level 4 SUITABLE FOR: Supervisors, Team Leaders, Managers, HR Staff. COST: Member: $2500+gst, Non-Member $3000+gst NZQA REGISTERED: Yes DURATION/ENROLMENT: Taught over 4 blocks of 2-day workshops over 4 months. AVAILABLE: Dates for 2013 are available in Auckland SPACES AVAILABLE: Maximum 18 per class – we can add another class if numbers dictate. KEY TUTORS: An EMA learning tutor. FORMAT: On-site at EMA. We have excellent classroom facilities and the cost includes morning tea, lunch and afternoon tea. DESCRIPTION: From writing a mission statement to measuring staff performance – learn the key principles behind building a successful organisation.

Building a Better Team – Identifying Your Personal Strengths SUITABLE FOR: Supervisors, Team Leaders, Managers and HR Staff.

COST: Member: $500 +gst | Non-Member $850 +gst NZQA REGISTERED: Yes DURATION/ENROLMENT: 1-day course running 9.00am – 4.00pm AVAILABLE: Dates for 2013 are available in Auckland SPACES AVAILABLE: Maximum 12 per class – we can add another class if numbers dictate. KEY TUTORS/FACULTY: An EMA Learning Tutor FORMAT: On-site at EMA. We have excellent classroom facilities and the cost includes morning tea, lunch and afternoon tea. DESCRIPTION: Learn to use the Strength Deployment Inventory (SDI) to increase your personal strengths, reduce team conflict and improve workplace communication and moral.

Coaching, Mentoring and Delegation SUITABLE FOR: Team Leaders, Managers and Business Owners. COST: Member $850 +gst | Non-Member $1,600 +gst NZQA REGISTERED: Yes DURATION/ENROLMENT: 2-day course running 9.00am – 4.00pm each day AVAILABLE: Dates for 2013 are available in Auckland SPACES AVAILABLE: Maximum 12 per class – we can add another class if numbers dictate. KEY TUTORS/FACULTY: Ralph Stock FORMAT: On-site at EMA. We have excellent classroom facilities and the cost includes morning tea, lunch and afternoon tea. DESCRIPTION: Learn effective coaching, mentoring and delegation skills to improve workplace motivation.

Health and Safety for Managers and Supervisors SUITABLE FOR: Supervisors, Team Leaders, Managers and Business Owners COST: Member: $500 +gst | Non-Member $850 +gst NZQA REGISTERED: Yes DURATION/ENROLMENT: 1-day course running 9.00am – 4.00pm AVAILABLE: Dates for 2013 are available in Auckland, Hamilton, Rotorua and Tauranga SPACES AVAILABLE: Maximum 12 per class – we can add another class if numbers dictate. KEY TUTORS/FACULTY: An EMA Learning Tutor FORMAT: On-site at EMA. We have excellent classroom facilities and the cost includes morning


IBANZ COLLEGE

Lean Thinking – Continually Improving Your Business SUITABLE FOR: Anyone who wants to learn the tools and techniques for ‘lean thinking’ COST: Member: $500+gst, Non-Member $850+gst NZQA REGISTERED: Yes DURATION/ENROLMENT: 1-day course running 9.00am – 4.00pm AVAILABLE: Dates for 2013 are available in Auckland SPACES AVAILABLE: Maximum 18 per class – we can add another class if numbers dictate. KEY TUTORS: Clinton Yeats FORMAT: On-site at EMA. We have excellent classroom facilities and the cost includes morning tea, lunch and afternoon tea. DESCRIPTION: Gain the ability to ‘think lean’ by minimising the time wasted on non-value adding activities and learning how to map the business process.

Managing Difficult and Disruptive People SUITABLE FOR: Team Leaders, Managers and Business Owners COST: Member: $500 +gst | Non-Member $850 +gst NZQA REGISTERED: Yes DURATION/ENROLMENT: 1-day course running 9.00am – 4.00pm AVAILABLE: Dates for 2013 are available in Auckland and Hamilton SPACES AVAILABLE: Maximum 12 per class – we can add another class if numbers dictate. KEY TUTORS/FACULTY: Geoff Wake FORMAT: On-site at EMA. We have excellent classroom facilities and the cost includes morning tea, lunch and afternoon tea. DESCRIPTION: Learn how you can appropriately manage difficult and destructive people in the workplace without losing your cool.

Writing and Maintaining an Active Business Plan SUITABLE FOR: Team Leaders, Managers, Business Owners COST: Member:$800 +gst | Non-Member $1,600 +gst NZQA REGISTERED: Yes DURATION/ENROLMENT: 2-day course running 9.00am – 4.00pm each day AVAILABLE: Dates for 2013 are available in Auckland SPACES AVAILABLE: Maximum 12 per class – we can add another class if numbers dictate. KEY TUTORS/FACULTY: Ralph Stock FORMAT: On-site at EMA. We have excellent classroom facilities and the cost includes morning tea, lunch and afternoon tea. DESCRIPTION: Gain the skills required to produce a comprehensive business plan that accurately communicates the business model, structure and goals.

IBANZ College is dedicated to your success as a professional within a competitive and dynamic business world. Our role is to address the professional development needs of individuals, teams and organisations by offering high quality NZQA accredited e-learning programmes, short courses and workshops. Our courses and expert trainers are second to none and our objective is to ensure you and your business succeeds in today’s complex and ever-changing financial market. PO Box 7053, Auckland 1141 Level 5, 280 Queen Street, Auckland 1010 Ph: 09 306 1732, Fax: 09 307 0960 Email: training@ibanz.co.nz Website: www.ibanzcollege.ac.nz

KEY PERSONNEL

• Gene Bekker (Principal), gene@ibanz.co.nz • June Bai (Academic Co-ordinator), june@ibanz.co.nz • Caroline Aurora (Student Liaison), caroline@ibanz.co.nz

COURSES National Certificate in Financial Services (Level 5) SUITABLE FOR: Supervisors, managers and financial advisers. COST: $3,735 + GST DURATION/ENROLMENT: Ongoing enrolments, maximum 24 months FORMAT: Blended learning (online learning, webinars and workshops) DESCRIPTION: This is the minimum standard of competency required to become a licensed financial adviser (AFA). To gain this qualification candidates must demonstrate competence in both generic and professional skills, which are covered by compulsory and elective unit standards. The compulsory skills and knowledge include principles of professional practice in a financial services organisation.

National Certificate in Financial Services (Level 4) SUITABLE FOR: Team leader, office manager and general advisers or customer services representatives in the financial services sector. COST: $3,300 + GST DURATION/ENROLMENT: Ongoing enrolments, maximum 24 months FORMAT: Blended learning (online learning, webinars and workshops) DESCRIPTION: To gain this qualification, candidates must demonstrate competence in both generic and professional skills which are covered by compulsory and elective standards.  

Short Courses SUITABLE FOR: All levels of leaders and managers COST: $300 to $600 DURATION/ENROLMENT: Ongoing enrolments, maximum 6 months per short course FORMAT: Online learning DESCRIPTION: There are many skills required to be an effective manager: you must understand finance, be able to manage people and, at times, bring others together to work on projects. Undertaking a short course is a time-effective way to refresh your skills or learn new ones. The suite of non-accredited short courses in Business and Leadership focuses specifically on the management skills required to run a productive and competitive business; has an emphasis on the practical application of theory and can be a valuable learning opportunity. COURSES INCLUDE: BusinessLeadership – LMG1; HR for the Non HR Manager – LMG2; Managing Budgets and Money – LMG3; Intermediate Project Management – PRM2; Advanced Project Management – PRM3.

Workshops SUITABLE FOR: Busy executives and managers. COST: $260-$480 DURATION: 3-5 hours depending on course COURSE DESCRIPTION: All workshops are run nationally throughout the year. Courses include: Developing A Million Dollar Attitude; Developing a Winning Personal Brand; Time and Energy Management; Conflict Management; The World of Corporate Information Protection Risks Problem Solving and Critical Thinking; Women in Leadership; Negotiation and Dispute Resolution. Visit www.ibanzcollege.ac.nz seminars page for more information.

ILUME INTERNATIONAL LIMITED

A New Zealand company with offices in Auckland, Wellington, Christchurch and Sydney, committed to evidence-based executive coaching programmes for large global corporate organisations. ilume has built on a solid base of experience with its team of executive coaches that provide real-world business experience and successful executive coaching outcomes. Our company provides Executive Coaching, Team Development and Coach Training. PO Box 106709, Auckland City 1143 Level 6, Rabobank Tower, 2 Commerce Street, Auckland CBD Ph: +64 9 377 3262, Email: info@ilume.co.nz Website: www.ilume.co.nz

KEY PERSONNEL

• Angela Neighbours (Director) +64 21 543 221, angela@ilume.co.nz • Raechel Ford (Director) +64 21 448 329, raechel@ilume.co.nz NOVEMBER 2012

| management.co.nz | 49

PROFESSIONAL DEVELOPMENT GUIDE

tea, lunch and afternoon tea. DESCRIPTION: Ensure your organisation meets its legal obligations surrounding workplace Health and Safety and supports the well-being of your employees.


Continued from page 49

PROGRAMMES ICC Coach Training Programme SUITABLE FOR: Chief Executives, Managers, HR Practitioners, Leaders of Business, Uncertified Coaches COST: $8495 + GST QUALIFICATION: International Coach ACCREDITATION: International Coaching Community (ICC), European Qualifications Authority (EQA) DURATION/ENROLMENT: 10 Full days as 4 modules across 4 months SPACES AVAILABLE: 12-16 per programme KEY TUTORS: Angela Neighbours and Raechel Ford FORMAT: On-site at ilume, experiential DESCRIPTION: A 10 day rigorous programme with the goal of participants becoming fully accomplished and globally certified as a foundation level coach. For the executive, a programme that leads to a measurably more effective leadership style.

Tailored Executive Coaching Programmes SUITABLE FOR: Chief Executives, Senior Managers, Managers, Business Owners COST: Price dependent on programme KEY TUTORS/FACULTY: The ilume Executive Coaching Team based in Auckland, Wellington, Christchurch, Sydney FORMAT: Face to face DESCRIPTION: One-on-one coaching programmes that take development beyond the traditional measures of skills and competencies to unlocking true potential through vertical (cognitive and social/ emotional) development.

INSTITUTE FOR STRATEGIC LEADERSHIP

SPACES AVAILABLE: 20 per programme KEY TUTORS: Director, Programme Manager, executive coaches and lifestyle coaches FORMAT: On-campus, experiential DESCRIPTION: The 7-day intensive residential programme blends team-based learning with focused, one-on-one executive coaching. As a result you’re able to hone your own innate leadership abilities and potentially deliver a vastly more effective style of leadership.

Leadership Programme for Team Leaders SUITABLE FOR: Level 3 & 4 high potential executives COST: $9,900 +GST (plus meals & accommodation package) DURATION/ENROLMENT: 6-day residential programme at Nugget Point, Queenstown SPACES AVAILABLE: 20 per programme KEY TUTORS: Director, Programme Manager and executive coaches FORMAT: On-campus, experiential DESCRIPTION: This 6-day intensive residential programme invites you to reflect on your current leadership style and learn how to reflect on your strategic leadership capabilities for more senior roles.

BA General Management Programme

M

SUITABLE FOR: Directors, CEOs and General Managers DURATION/ENROLMENT: 3 modules of 5 days over 3 months SPACES AVAILABLE: 15 per programme KEY TUTORS: Director, Programme Manager and subject specialists FORMAT: Auckland CBD, residential, experiential DESCRIPTION: Module 1: Strategy & Change, Module 2: Accounting & Finance, Module 3: Marketing & People. Rigorous & intensive.

INSTITUTE OF DIRECTORS IN NEW ZEALAND (INC) The Institute for Strategic Leadership specialises in developing strategic leaders at the director, chief executive and general manager levels. It also supports these executives develop their high potential middle managers (level 3). Level 27, PWC Tower, 188 Quay Street PO Box 105 538, Auckland 1143 Ph: +64 9 366 1560 Fax: +64 9 336 1474 Email: info@leadership.ac.nz Website: www.leadership.ac.nz

KEY PERSONNEL

• Geoff Lorigan (Director) +64 21 337 643, g.lorigan@leadership.ac.nz • Lindsay Somerville (Programme Manager) +64 21 848 159, l.somerville@leadership.ac.nz

COURSES Strategic Leadership Programme SUITABLE FOR: Directors, Chief Executives and General Managers COST: $16,900 +GST (plus meals & accommodation package) DURATION/ENROLMENT: 7-day residential programme at Millbrook, Queenstown 50 | management.co.nz | NOVEMBER 2012

COURSES Governance Essentials SUITABLE FOR: Senior managers, aspiring and new directors COST: $795-$960 DURATION/ENROLMENT: 1-day course 26 Feb, 19 Mar, 17 Apr, 14 May, 28 May, 18 June, 25 June SPACES AVAILABLE: 20 per course DESCRIPTION: Designed as a practical introduction to governance, IoD’s Governance Essentials gives participants an understanding of the role and fundamental responsibilities of the board and individual directors.

Finance Essentials SUITABLE FOR: Senior managers, aspiring and new directors COST: $795-$960 DURATION/ENROLMENT: 1-day course 27 Feb, 28 Feb, 21 Mar, 18 Apr, 1 May, 16 May, 20 June SPACES AVAILABLE: 20 per course DESCRIPTION: Every director at the board table must be financially proficient and both read and understand an organisation’s financial statements. Finance Essentials examines the director’s role in relation to financial reporting, demystifies financial terminology and enables you to understand financial reporting and analysis.

Strategy Essentials SUITABLE FOR: Senior managers, aspiring and new directors COST: $795-$960 DURATION/ENROLMENT: 1-day course 27 Feb, 13 Mar, 20 Mar, 15 May, 19 June SPACES AVAILABLE: 20 per course DESCRIPTION: A board of directors takes a longterm view of the business, considers where the business is going and how it’s going to get there. Strategy Essentials will help participants understand the fundamentals of strategy development and how they can add value as they participate in the strategy development process.

Governance Development Programme

The Institute of Directors delivers best practice learning which can help good directors become even better, no matter what stage of their career. Our Director Development programme is designed to meet the needs of today’s directors in today’s environments, to maximise the opportunity to interact with peers while learning from presenters who are top in their field. PO Box 25253, Wellington 6146 Tower Building, 50 Customhouse Quay, Wellington Ph: 0-4-499 0076 Email: mail@iod.org.nz, Website: www.iod.org.nz

KEY PERSONNEL

• Linda Cohen (Director Development Manager), directordevelopment@iod.org.nz • Jodi Percy (Director Development Advisor – Northern), jodi.percy@iod.org.nz • Andrea Broad (Director Development Advisor – Southern), andrea.broad@iod.org.nz

SUITABLE FOR: Senior managers, aspiring and new directors COST: $2300-$2740 DURATION/ENROLMENT: Ten two-hour sessions. Timings vary depending on location. Held in Hamilton, Tauranga, Wellington, Nelson, Christchurch and Dunedin. SPACES AVAILABLE: 20 per course DESCRIPTION: Delivered over ten interactive sessions, this course gives participants all the technical content of Governance Essentials, while providing an ideal opportunity to build relationships and benefit from ongoing interchange through case studies and exercises.

Company Directors’ Course SUITABLE FOR: Senior executives and directors of all levels who wish to advance their competency in the governance environment. COST: $6690-$7995 DURATION/ENROLMENT: 24 Feb-1 Mar, 3-8 Mar, 17-22 Mar, 7-12 Apr, 5-10 May, 26-31 May, 9-14 June, 23-28 June


LEADERSHIP NEW ZEALAND TRUST

Leadership New Zealand develops high quality leadership throughout New Zealand by connecting the many sectors of our diverse society with quality conversation, challenging learning, and real action. We provide a unique and unparalleled leadership development experience by harnessing diverse perspectives and conversation to develop better leaders who engage effectively with salient issues in our society today and into the future. PO Box 5061, Wellesley St, Auckland 1141 Ground floor, Princes Court, 2 Princes St, Auckland Ph: 0-9-309 3749 Email: info@leadershipnz.co.nz Website: www.leadershipnz.co.nz

KEY PERSONNEL • Sina Wendt-Moore (CEO), 021 666 595, ceo@leadershipnz.co.nz • Jo Brosnahan (Chair), 021 576 595, jo.brosnahan@gmail.com

Leadership Programme SUITABLE FOR: Senior leaders across all sectors of New Zealand society COST: $14,000 + GST DURATION/ENROLMENT: 9-month programme with ongoing involvement in community leadership. AVAILABLE: Part time PREREQUISITES: Holding a senior position of leadership in your organisation or community SPACES AVAILABLE: 35 FORMAT: A full year programme involving 9 monthly sessions across a range of locations in New Zealand. DESCRIPTION: Each session involves presentations from and discussions with prominent leaders and guest speakers, debates, and full day seminars. The diversity of participants, speakers, topics and locations give a variety of perspective that creates challenge, real learning and transformation above and beyond standard leadership development.

MANUKAU INSTITUTE OF TECHNOLOGY FACULTY OF BUSINESS

The Faculty of Business has a comprehensive portfolio of study options relating to management and business education with an applied focus and commitment to industry engagement. Postgraduate courses relating to executive education are offered in collaboration with Southern Cross University (Australia) via supported distance learning mode of delivery. Private Bag 94006, Manukau 2241 North Campus, Otara Road, Manukau, Auckland

Freephone: 0800 MBA DBA (622 322) Fax: 0-9-968 7783, Email: mbadba@manukau.ac.nz Website: www.manukau.ac.nz/postgraduate

KEY PERSONNEL

• Dr Christopher Theunissen (Associate Dean Postgraduate) christopher.theunissen@manukau.ac.nz • Mrs Elly Forsyth (Programme Coordinator) mbadba@manukau.ac.nz

COURSES SOUTHERN CROSS UNIVERSITY (SCU) PROGRAMMES Master of Business Administration (MBA) SUITABLE FOR: Middle to senior managers QUALIFICATION: Southern Cross University MBA COST: $2100 per unit (2012) including GST. 12 units (schedule, fees and number of units subject to change in 2013) DURATION: Two to four years. Start in January, May or September AVAILABLE: Part-time, supported distance learning PREREQUISITES: Degree or equivalent and relevant professional experience SPACES AVAILABLE: Unlimited KEY TUTORS: Dr Christopher Theunissen, Associate Dean Postgraduate, plus SCU approved Faculty staff FORMAT: Distance learning with supported workshops and tele-tutorials DESCRIPTION: This programme enables students to develop and enhance their individual management skills and critical thinking abilities with a focus on the application of knowledge in business. It is particularly relevant for those individuals who have an existing leadership role within an organisation or for those aspiring to such a role.

Master of Human Resources and Organisational Development (MHROD) SUITABLE FOR: Middle to senior managers COST: $2100 per unit (2012) including GST. 12 units (schedule, fees and number of units subject to change in 2013)

ELEVATE YOUR CAREER WITH A MASSEY MBA CONTACT US TODAY TO MAKE THE BREAKTHROUGH 0800 505 825 | MBA@MASSEY.AC.NZ | MBABREAKTHROUGH.AC.NZ

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SPACES AVAILABLE: 25 per course DESCRIPTION: For anyone serious about their career as a director, IoD’s Company Directors’ Course is essential. This week-long residential course provides a comprehensive understanding of what it takes to be a competent director. It provides excellent networking opportunities and ample occasion for participation, discussion and debate.


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DURATION: Two to four years. Start in January, May or September AVAILABLE: Part-time, supported distance learning PREREQUISITES: Degree or equivalent and relevant professional experience SPACES AVAILABLE: Unlimited KEY TUTORS: Dr Christopher Theunissen, Associate Dean Postgraduate, plus SCU approved Faculty staff FORMAT: Distance learning with supported workshops and tele-tutorials DESCRIPTION: The Master of Human Resources and Organisational Development offers a thorough grounding in the areas of human resources management and development with an emphasis on strategies in organisational development and business leadership.

Master of Professional Accounting (MPA) SUITABLE FOR: Middle to senior managers COST: $2100 per unit (2012) including GST. 16 units (fees and schedule of units subject to change in 2013). DURATION: Two to four years. Start in January, May or September AVAILABLE: Part-time, supported distance learning PREREQUISITES: Degree or equivalent and relevant professional experience SPACES AVAILABLE: Unlimited KEY TUTORS: Dr Christopher Theunissen, Associate Dean Postgraduate, plus SCU approved Faculty staff FORMAT: Distance learning with supported workshops and tele-tutorials DESCRIPTION: The Master of Professional Accounting (MPA) programme is designed for non-accounting business professionals looking for a career change and planning to move into the fields of accounting, taxation, economics, law and management.

Doctor of Business Administration (DBA) SUITABLE FOR: Senior executives COST: $2150 per unit (2012) including GST. Up to 24 units (with potential consideration of advanced standing for some coursework units) DURATION: 6 years maximum part-time. AVAILABLE: No applications are being accepted at this time. Please contact us for further information. PREREQUISITES: MBA or a Masters Degree level research or coursework qualification acceptable to Southern Cross University; AND have appropriate executive managerial experience in the public or private sector SPACES AVAILABLE: Limited KEY TUTORS: Dr Christopher Theunissen, Associate Dean Postgraduate, plus SCU approved Faculty staff FORMAT: Distance learning with supported workshops for initial research units. The DBA thesis consists of an approved programme of supervised research. DESCRIPTION: This professional Doctorate programme offers senior executives doctoral level study opportunities relating to business. It develops high-level research abilities and competencies in key areas of management as well as allowing for the communication of associated research results to peer groups and society as a whole.

MASSEY UNIVERSITY COLLEGE OF BUSINESS

Massey University’s College of Business offers a range of qualifications from undergraduate to executive education at its campuses in Albany, Palmerston North and Wellington as well as via distance. The College holds international accreditation from AACSB, putting it among the top five per cent of business schools globally. Private bag 102904, North Shore, Auckland, 0745 Massey University Albany (East Precinct) Albany Expressway SH17 Email: contact@massey.ac.nz Telephone: 0800 MASSEY (627 793) Websites: massey.ac.nz, mbabreakthrough.ac.nz, engine.ac.nz

KEY PERSONNEL

• Professor Ted Zorn (College of Business Pro ViceChancellor and Dean)

PROGRAMMES Executive MBA SUITABLE FOR: Ambitious, tertiary-experienced, midcareer managers in full-time employment. Typically aged between 28 and 55. COST: $35,000 plus $10,000 for domestic & international travel NZQA REGISTERED: Yes OTHER ACCREDITATION: AACSB and Association of MBAs (AMBA). DURATION: 25 months ENROLMENT: Open now, programme starts 15th February 2013 AVAILABLE: Part time (weekends) PREREQUISITES: A bachelor’s degree with good grades and at least five years’ work experience with two to three years’ management experience. Limited places for those without degrees who have relevant experience. SPACES AVAILABLE: 30 in Auckland, 20 in Palmerston North, 20 in Wellington and 20 in Christchurch KEY TUTORS/FACULTY: College of Business FORMAT: Classroom, consultancy, international business trip DESCRIPTION: New Zealand’s longest-running MBA course with small classes taught in four centres allowing students to network and learn across cohorts. Flexible teaching schedule with emphasis on personal and leadership development and practical application of theory.

Master of Management (MMgt) SUITABLE FOR: Business or non-business graduates COST: Contact us for fee information. NZQA REGISTERED: Yes OTHER ACCREDITATION: AACSB accredited DURATION/ENROLMENT: Two years of full-time study or equivalent by part-time study. One year of full-

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time study or equivalent for students entering after PGDipBusAdmin or equivalent. PREREQUISITES: Candidates for the MMgt will normally have successfully completed an appropriate bachelor’s degree with an acceptable grade point average. Students entering the one-year programme will have completed an endorsed Postgraduate Diploma in Business and Administration or an approved commerce postgraduate diploma or bachelor, honours or master degree. 
 KEY TUTORS/FACULTY: College of Business FORMAT: On campus and by distance. DESCRIPTION: Many non-business graduates who want a higher degree in business enrol in the twoyear Master of Management (MMgt). It can be taken as a one-year programme after the Postgraduate Diploma in Business and Administration. 



Master of Professional Accountancy and Finance (MPAF) SUITABLE FOR: Graduates of any discipline who are seeking careers in the accountancy/finance professions or who want to up-skill. COST: Contact us for fee information. NZQA REGISTERED: CUAP approved OTHER ACCREDITATION: New Zealand Institute of Chartered Accountants (NZICA) (College is AACSB accredited) DURATION/ENROLMENT: Two years full-time. PREREQUISITES: Bachelor’s degree in any discipline. KEY TUTORS/FACULTY: College of Business FORMAT: On Wellington campus or by distance DESCRIPTION: Massey is highly-rated in the QS world university rankings for accountancy and finance programmes. The MPAF is designed for professionals with the skills for leadership in this sector and graduates looking for a career change.

Seven Steps to Effective Governance – For Busy People! SUITABLE FOR: Anyone with a limited knowledge about the role/activities of governance. COST: $345 incl. GST QUALIFICATION: Certificate of Participation DURATION/ENROLMENT: 2–3 hours; Enrolment through PaCE website, www.pace.ac.nz AVAILABLE: Part-time (essentially a half-day time commitment) SPACES AVAILABLE: 15 KEY TUTORS/FACULTY: Dr David Tweed (Massey Uni), Bev Edlin, Nick Dangerfield (Boardroom 360) FORMAT: 2 hour presentation, with opportunity for networking, questions and discussion. On and off campus, including the provinces/regions. DESCRIPTION: Anyone needing an introduction/ overview to the key aspects of effective governance practice, processes and behaviours. 2 hour (plus free bonus option of 1 hr practical – applying the seven steps).

Master of Management (Banking and Finance) SUITABLE FOR: Graduates interested in leading roles within the banking and finance industry. COST: Contact us for fee information. NZQA REGISTERED: Subject to CUAP approval OTHER ACCREDITATION: College of Business is AACSB accredited DURATION/ENROLMENT: Two-year full time study, or


NEW ZEALAND INSTITUTE OF MANAGEMENT INC INSPIRING MANAGERS

PO Box 67, Wellington 6140 Level 9, Lumley House, 3-11 Hunter Street, Wellington Freephone: 0800-373 700 Phone: 0-4-495 8300, Fax: 0-4-495 8301 • Kevin Gaunt (CEO NZIM Inc) kevin.gaunt@nzim.co.nz

AUCKLAND OFFICE PO Box 6600, Wellesley Street, Auckland 1141 DLA Phillips Fox Tower Level 4, 209 Queen Street, Auckland 1010 Freephone: 0800-800 694 Ph: 0-9-303 9100, Fax: 0-9-303 9109 Email: enquiries@nzimnorthern.co.nz • Tait Grindley, tait.grindley@nzim.co.nz

WELLINGTON OFFICE

PO Box 11781, Manners Street, Wellington 6142 Level 7, Lumley House, 3-11 Hunter Street, Wellington Freephone: 0800-373 700 Ph: 0-4-495 8300, Fax: 0-4-495 8301 Email: enquiries@nzimcentral.co.nz • Shaun Sheldrake shaun.sheldrake@nzim.co.nz

SOUTHERN REGION

PO Box 13044, Armagh, Christchurch 8141 Unit 4, 303 Blenheim Road, Christchurch Ph: 0-3-379 2302, Fax: 0-3-357 8033 Email: admin@nzimsouthern.co.nz • Joseph Thomas, joseph@nzimsouthern.co.nz

SNAPSHOT OF COURSES NZIM Diploma in Front Line Management SUITABLE FOR: Co-ordinators, team leaders, supervisors. AVAILABLE: Full-time, part-time. All NZIM regions. SPACES AVAILABLE: 16 FORMAT: Workshops and post workshop assessment. DESCRIPTION: This Diploma is designed to enhance your overall business and management acumen and ability. NZIM Dip.FLM – Superior business results.

NZIM Diploma in Project Management

WHAT SETS NZIM APART? NZIM is a registered Private Training Establishment and a not-for-profit organisation with a proud history dating back to 1946. • Facilitated by experienced practitioners • “Learning by doing” is the philosophy • Workshop participant numbers are restricted to ensure individual learning • An interactive environment where participant input is encouraged and welcomed • Up-to-date workshop content and comprehensive workbooks and reference manuals provided • Qualifications registered on the NZ Qualifications Framework • Work with ITOs to gain funding.

PHILOSOPHY NZIM training and development programmes are at the forefront of management development today, developing the leaders and managers of tomorrow. NZIM can offer learning opportunities to people wanting to acquire new skills and knowledge in a world with no guaranteed career paths and emphasis on self-development and selfdirection. NZIM studies overseas trends, monitors research and keeps a watchful eye on business development and techniques in order to offer a range of diverse programmes and services.

SUITABLE FOR: Individuals who are involved in project management and want a qualification. DURATION: 9 days over 9 months. AVAILABLE: Full-time, part-time. SPACES AVAILABLE: 16 FORMAT: Workshops and post workshop assessments. DESCRIPTION: NZIM Diploma in Project Management (Level 5) will provide you with the skills and applied knowledge for effective management of projects in a wide range of contexts.

Advanced Management Programme SUITABLE FOR: Those in senior leadership or management or aspiring to move into senior positions. DURATION: Two x 2 week segments commencing 19 June 2011 AVAILABLE: Full-time SPACES AVAILABLE: 25 FORMAT: Seminar style in hotel setting. DESCRIPTION: AMP takes a holistic view of leadership offering an invaluable opportunity to spend time with an international faculty exploring individual and organisational excellence.

NZIM Diploma in Management Advanced (Level 6) SUITABLE FOR: Managers preparing for senior roles. DURATION: 12 months AVAILABLE: Part-time, Independent study PREREQUISITES: More than five years management experience.

WANT TO ENHANCE YOUR MANAGEMENT CAREER? STUDY AT NEW ZEALAND’S LEADING BUSINESS SCHOOL Waikato Management School’s Corporate & Executive Education is taking programme enrolments now. The Waikato MBA emphasises inspirational leadership, value creation, sustainability and international connectedness. It is a practical and relevant programme that can bring life changing value to you and your organisation. Starts April 2013. The Postgraduate Diploma in Management Studies develops management skills, covers functional business areas, and applies learning to existing workplace situations. Starts February 2013. We are about you. Your life. Your career. Your organisation. There’s no stopping you E kore e taea te aukati i a koe

Corporate & Executive Education. Scholarships available. Phone 0800 800 891, email execed@waikato.ac.nz or visit www.execed.ac.nz

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up to five years part-time. AVAILABLE: Full-time/Part-time. Banking distance & Finance in block mode PREREQUISITES: Good grades in bachelor’s degree. KEY TUTORS/FACULTY: School of Economics and Finance, College of Business FORMAT: Finance papers at Albany and Manawatu campuses or by block mode at Wellington campus. Banking papers internally at Albany campus or by distance learning DESCRIPTION: Stand out from the crowd in this dynamic sector with a Master of Management (Banking and Finance) to be offered in 2013, subject to CUAP approval.


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SPACES AVAILABLE: 16 FORMAT: Workshops and post workshop assessment DESCRIPTION: The NZIM Diploma in Management Advanced programme is an innovative, comprehensive programme designed to extend and develop the potential of key managers and leaders within an organisation.

KEY PERSONNEL

NZIM PUBLIC PROGRAMMES AND CUSTOMISED TRAINING & CONSULTANCY

Leadership Development Programme

NZIM offers over 1000 workshops nationally and has over 60 years of experience in building management capability in New Zealand. NZIM regional training centres cover the whole country and offer training programmes to cater for the broad spectrum of managers – from Directors and CEOs to team leaders and frontline managers. Programmes range from half-day seminars to one-month residential. These include NZQA approved qualifications from level 4 to level 6 including courses such as the Diploma in Health and Safety Management (Level 6), NZIM Diploma in Management Advanced (Level 6) and National Certificate (Level 4). NZIM also offers 1, 2, or 3-day programmes covering a wide range of requirements including executive development, operational management, sales and marketing, financial fundamentals and a wide range of essential business skills. NZIM develops customised learning solutions which support organisational development and change. We partner with some of New Zealand’s leading organisations, to deliver high quality learning programmes, designed to meet specific organisational needs; these range from 2-hour learning sessions to half-day seminars to year-long qualifications. All these courses and other relevant information can be found on our website www.nzim.co.nz

ORGANISATION DEVELOPMENT INSTITUTE

The Organisation Development Institute aims to build capable organisations through growing the capability of their people, by designing and delivering research-informed learning solutions for tertiary educated managers and professionals. The Institute offers scheduled short courses, a Leadership Development Programme, and custom programmes that are based on adult teaching and learning best practices, and designed and delivered by subject experts who are professional educators. PO Box 20395, Bishopdale, Christchurch 8453 Unit 3a, 41 Sir William Pickering Drive Burnside, Christchurch Ph: 0-3-943 2373, Email: info@development.org.nz Website: www.development.org.nz

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• Kyran Newell (Director) 021 688 966, kyran.newell@development.org.nz • Nicky Trainor (Director) 021 133 1201, nicky.trainor@development.org.nz

PROJECT PLUS LTD

PROGRAMMES SUITABLE FOR: Middle and senior corporate leaders, and SME owners, directors and managers. COST: $13,850 DURATION/ENROLMENT: 15 workshop days spaced over 5 months, with workplace coaching to support application of new leadership behaviours at work. SPACES AVAILABLE: Up to 12 per occurrence; currently scheduled for Christchurch June-December 2013. KEY TUTORS/FACULTY: A portfolio of 10 subjectexpert professional educators and coaches. FORMAT: Diagnostics, experiential workshops, individual workplace activity supported by application tools and individual coaching. DESCRIPTION: The Leadership Development Programme aims to provide information, tools, practice and application of Strategic and Tactical level leadership behaviours from our Leadership Competencies Framework. The workshops traverse relationship and task behaviours in vision, strategy, change, communication, collaboration, creativity and innovation, teamwork, and personal strength and resilience. A key element of the programme is individual coaching to enact new leadership practices at work.

Custom Programmes SUITABLE FOR: Leaders, managers and professionals seeking research-informed content and best practice tools for application at work, in the domains of leadership behaviours and task management skills. COST: By quotation. DURATION/ENROLMENT: As required by client SPACES AVAILABLE: Up to 20 per occurrence KEY TUTORS: A portfolio of 35 subject-expert professional educators. FORMAT: Experiential workshops, supported by preworkshop and post-workshop learning elements, coaching, workplace projects and assessment, all as required by the client. DESCRIPTION: Multi-workshop, multi-presenter leadership development programmes at operational, tactical and/or strategic leader levels that address client organisation competencies frameworks or the Institute’s Leadership Competencies Framework; customised workshops leveraged off our extensive short courses content and supported by other learning and application elements including individual coaching; design and delivery of new content to client specifications.

For over 21 years Project Plus has maintained a passionate focus on our clients’ strategic success. Our training & certification options encompass all aspects of modern, global standard based portfolio, programme and project management. Our range and diversity of learning options is one of the largest in the world and is delivered globally. We continue to develop our product range to meet market needs. Our facilitators are highly experienced business leaders, seasoned practitioners as well as adult training faciltators and thus provide learning and education that betters global smart practice. PO Box 10515, Wellington 6143 L5, 44 Victoria Street, Wellington 6035 Ph: 0-4-495 9100, Fax: 0-4-495 9109 Email: training@projectplusgroup.co.nz Website: www.projectplusgroup.co.nz

KEY PERSONNEL

• Abby Leota (Training & Certification Manager), 021 271 5716, abby.leota@projectplusgroup.co.nz • Iain Fraser (Group Managing Director), 021 479 301, iain.fraser@projectplusgroup.com

CERTIFICATION Rating: ISO 9001:2008 since 1997 Certification agency: BVQI • NZQA Registered as a Private Training Establishment (PTE). • Registered Education Provider (global status) with the Project Management Institute (PMI®). • Accredited Training Organisation by APMG Group • Preferred Supplier to many organisations in NZ and UK • Large range of formal certifications including our successful NZQA based Certificate Series. • All workshops and certification programmes can be run in-house and be customised to meet your organisational needs. • Public Training Schedule available at www.projectplusgroup.co.nz

COURSES Executive Skills Programme SUITABLE FOR: Level 1-3 leaders DURATION/ENROLMENT: Refer to website PREREQUISITES: Interest in improving the execution of strategy and the governance of new initiatives and in management of change. DESCRIPTION: Designed for busy executives and senior leaders that require oversight on portfolio and/or programme management. Choose from 4 distinct workshops that are business-based and designed to allow for optimal learning.


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Specialist Skills Programme

COURSES

SUITABLE FOR: Level 2-4 leaders/managers DURATION/ENROLMENT: Refer to website PREREQUISITES: An understanding of benefits that a project-based approach provides to the achievement of strategic objectives. FORMAT: All classroom and facilitated dialogue. DESCRIPTION: This programme provides a wide range of options that allows for advanced knowledge and skills to be gained. Allows individuals to increase their contribution to their organisation through increased benefit.

Postgraduate Diploma in Business Enterprise

Core Skills Programme SUITABLE FOR: Level 4-5 leaders/managers DURATION/ENROLMENT: Refer to website PREREQUISITES: An understanding of modern project management and how it contributes towards modern business plan execution. FORMAT: All classroom and facilitated dialogue. DESCRIPTION: This programme provides a selection of options that allow participants to acquire core skills in modern project management. Perfect for those in an early career development stage and that recognise the need for skills development. Allows individuals to enhance their contribution to their team and organisation.

Global Credentials SUITABLE FOR: Level 2-4 leaders/managers PREREQUISITES: Some prerequisites are required depending on credential option being pursued. FORMAT: Mostly classroom and facilitated dialogue. Some online learning available also. DESCRIPTION: These options represent the world’s leading project-based credentials and cover global standards, methodologies and pragmatic application that provides an unsurpassed choice. Only our very best facilitators are used to make sure that a successful attainment of your chosen credential is achieved.

SOUTHERN INSTITUTE OF TECHNOLOGY

SUITABLE FOR: Undergraduates looking to start or develop a business in their related field of study. COST: $1787 PREREQUISITES: Applicants will have: Graduated with degree or honours degree in any discipline from NZ tertiary institute accredited to offer qualifications at this level or overseas equivalent. SPACES AVAILABLE: Limited places – call now! KEY TUTORS: Fiona Forrest, programme manager. FORMAT: On-campus is classroom; distance is mixed mode delivery. DESCRIPTION: This programme is designed to meet the needs of graduates who wish to start their own business as well as those who want to learn about entrepreneurship, innovation and business enterprise management in an existing business.

Bachelor in Commerce SUITABLE FOR: Students wishing to enter into accountancy, marketing or management roles. COST: $1680 DURATION/ENROLMENT: Three years full time or longer part time PREREQUISITES: A minimum of 42 credits at NCEA Level 3 or higher over 3 subjects on the NZQA approved subject list. SPACES AVAILABLE: Limited places – call now! KEY TUTOR: Paul Marambos FORMAT: On-Campus classrooms and applied learning practical projects. DESCRIPTION: SIT’s new Bachelor of Commerce offers majors in Accounting, Management or Marketing. SIT has received strong support from local accounting firms and the local branch of NZICA in obtaining accreditation for the new degree.

STEEL INSTITUTE OF PERFORMANCE

KEY PERSONNEL

• Craig Steel (Principal and Head Performance Specialist) + 64 27 242 5840, c.steel@steel-ip.com • Jo Dickson (General Manager) + 64 275 425 354, j.dickson@steel-ip.com

COURSES Strategic Performance Template™ (SPT) SUITABLE FOR: Executive Leadership Teams and National Management Teams. COST: $8,500 + GST (for an in-house leadership team of up to 12 participants) DURATION: 2-day Strategic Planning workshop that can be completed either in-house or at SIP. DESCRIPTION: The SPT is a unique strategic planning process designed to help organisations identify and articulate their strategic aspirations and operational objectives to their workforce to ensure all staff are engaged with the strategic vision. The advantage the SPT has over other strategic planning tools is that it acts as a performance management and development framework thereby negating the need for companies to manage multiple performance improvement processes.

Executive Performance™ (EP) SUITABLE FOR: Executive Leaders and/or Senior Leadership Teams. COST: $22,500 + GST (for an in-house leadership team of up to 12 participants) $5,500 + GST (for a ‘One-on-one’ programme with Craig Steel at SIP) DURATION: 9-week programme consisting of one full day’s strategic preparation followed by one 90 minute ‘team’ session per week for eight consecutive weeks. EP and its 3-day compact equivalent EP cp ($18,500 + GST) can be completed either in-house or at SIP. DESCRIPTION: EP is our flagship performance improvement programme for Executive Leadership Teams. EP is designed to equip executives with the tools to not only excel as the senior leaders of an organisation, but to facilitate a step-change in the performance capability of their workforce using the unique technology we developed for professional coaches.

Leadership Performance™ (LP)

SIT is a tertiary institution with campuses in Invercargill, Queenstown, Christchurch and Gore, as well as a distance learning faculty ‘SIT2LRN’. We have a 40-year proud history of education and training across a wide range of subjects and a variety of levels including postgraduate study. Our Zero Fees Scheme means we pay your tuition fees, all you are charged for are direct material costs for your course. Many SIT graduates are able to start their careers debt-free! PO Box 90114, Invercargill, 9840 133 Tay Street, Invercargill Freephone: 0800 4 0 3337, Fax: 03 214 4977 Email: info@sit.ac.nz, Website: www.sit.ac.nz

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The Steel Institute of Performance (SIP) are New Zealand’s foremost performance experts. We specialise in helping managers engineer a step-change in the performance capability of themselves and their workforce using the unique technology we developed for professional coaches. SIP offers both in-house and group enrolment programmes to help Level 1, 2 and 3 managers excel. SIP’s clients include multinational corporations, government agencies and privately owned companies. The one common factor our clients share is their commitment to build genuine world-class people leaders. Level 2, 139 Carlton Gore Road, Newmarket PO Box 9471, Newmarket, Auckland, 1149 Ph +64 9 522 9409, Email: info@steel-ip.com Website: www.steel-ip.com

SUITABLE FOR: 2nd and 3rd tier Managers and/or Management Teams. COST: $18,500 + GST (for an in-house Management Team of up to 12 participants) DURATION: 8-week programme consisting of one 90 minute ‘team’ session per week for eight consecutive weeks. LP and its 2-day compact equivalent LP cp ($16,500 + GST) can be completed either in-house or at SIP. DESCRIPTION: LP is our premier performance improvement programme for 2nd and 3rd tier managers. LP and LP cp are designed to equip managers with the tools to step up to the next level of performance in order to improve the performance capability of their workforce. LP and LP cp can be completed in-house by a management team or they can be completed by individual managers via our scheduled group enrolment programmes held twice yearly at SIP ($2,500 + GST per person). Please refer to our website for further details.


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Sales Manager™ (SM) SUITABLE FOR: National and/or Regional Sales Managers. COST: $18,500 + GST (for an in-house team of up to 12 participants) DURATION: 8-week programme consisting of one 90 minute ‘team’ session per week for eight consecutive weeks. SM and its 2-day compact equivalent SM cp ($16,500 + GST) can be completed either in-house or at SIP. DESCRIPTION: SM is our premier performance improvement programme for Sales Managers. SM and SM cp are designed to equip sales managers with the tools to improve their and their team’s performance using the unique technology we developed for professional coaches. SM and SM cp can be completed in-house by sales managers (or a sales team) or they can be completed by individual sales managers via our scheduled group enrolment programmes held twice yearly at SIP ($2,500 + GST per person). Please refer to our website for further details.

Principal Responsibilities of Leadership™ (PRL) SUITABLE FOR: Level 1, 2 & 3 Managers. COST: $12,500 + GST (for an in-house team of up to 12 participants) DURATION: 4-month leadership programme consisting of one half day workshop per month for four consecutive months. The PRL can be completed either in-house or at SIP. DESCRIPTION: PRL is a unique leadership framework designed to equip experienced managers with the tools to optimise the performance and productivity of their workforce by helping them improve staff engagement and alignment, improve performance standards, increase the performance capability of their workforce and build a true high performance culture and attitude to business.

THE UNIVERSITY OF AUCKLAND THE GRADUATE SCHOOL OF MANAGEMENT

From a two-day short course to a two-year Executive MBA, the Graduate School of Management at The University of Auckland Business School offers a portfolio of programmes to lift your management capability as an individual, in teams and across organisations. Our MBA graduates tell us that our internationally recognised MBA programme “challenged their thinking”; helped them “make positive, meaningful and sustainable contributions” to their businesses and “build a trusted professional network”. 58 | management.co.nz | NOVEMBER 2012

Private Bag 92019 12 Grafton Road, Auckland Freephone 0800 227 337 Email: mba@auckland.ac.nz Website: www.gsm.auckland.ac.nz

KEY PERSONNEL • Peter Withers (Director of Academic Programmes), The Graduate School of Management, mba@auckland.ac.nz • Donovan Breunig (Programme Manager), The Graduate School of Management

COURSES

general management skills and modern business practice. Graduates are recognised for their broad knowledge and versatility by employers in both the public and private sectors, in New Zealand and overseas. Options within this programme are Business Administration and (subject to numbers) Maori Development and Health Management.

THE UNIVERSITY OF AUCKLAND EXECUTIVE EDUCATION

The Master of Business Administration (MBA) – Executive MBA Pathway SUITABLE FOR: Senior level executives with an average of 15 years’ work experience NZQA REGISTERED: Yes OTHER ACCREDITATION: AMBA, EQUIS and AACSB DURATION/ENROLMENT: Two year part-time in block courses fortnightly on Fridays and Saturdays. PREREQUISITES: A strong first degree or a professional qualification, plus several years’ fulltime management experience. Applicants will be personally interviewed FORMAT: All on campus at Grafton Road DESCRIPTION: The emphasis is on the enhancement of thinking and high value decision making. The Executive MBA Pathway attracts senior influencers and decision-makers from throughout New Zealand. It is an intense and demanding learning environment, focusing on peer dialogue and interaction facilitated by practitioner teachers with extensive academic backgrounds and business experience.

The Master of Business Administration (MBA) – Auckland MBA Pathway SUITABLE FOR: Middle to senior management with at least three years management experience. NZQA REGISTERED: Yes OTHER ACCREDITATION: AMBA, EQUIS and AACSB DURATION/ENROLMENT: One year part-time after successful completion of the Postgraduate Diploma in Business in Administration. PREREQUISITES: Includes Postgraduate Diploma in Business in Administration and interview with selection panel. FORMAT: All on campus at Grafton Road. DESCRIPTION: The Auckland MBA Pathway offers an intense, challenging experience for individuals seeking to move into the top levels of general management. It is designed to integrate knowledge of the functional areas of business into the overall management process and to further develop decision-making and leadership skills into a range of management contexts.

Postgraduate Diploma in Business (PGDipBus) SUITABLE FOR: Those in or aspiring to senior management positions or self-employment. NZQA REGISTERED: Yes DURATION/ENROLMENT: Two years part-time FORMAT: All on campus at Grafton Road DESCRIPTION: The Postgraduate Diploma in Business is specifically designed as a gateway to the Auckland MBA Pathway. It provides a solid grounding in

We take pride in being a trusted adviser and partner to many organisations as they invest in their people and build for the future. A key focus for us is maximising your “return on learning” and the value you gain from investing your time and money to take part in our programmes. Within The University of Auckland Business School, Executive Education has been operating since 1996. Over the past 16 years the team has worked with over 45,000 executives from public and private sector clients to help them improve their managerial and leadership performance and their overall competitiveness. Our Executive Education portfolio comprises open enrolment Short Courses, In-house Short Courses and Customised Programmes. We encourage you to contact us about your learning journey. The University of Auckland Business School Executive Education Private Bag 92019, Auckland 1142 Freephone: 0800-800 875 Email: exec@auckland.ac.nz Website: www.exec.auckland.ac.nz

KEY PERSONNEL • Ivan Moss (Director of Executive Education), i.moss@auckland.ac.nz • Darren Levy (Director of Short Courses), dl.levy@auckland.ac.nz • Dean Withers (Course Advisor), d.withers@auckland.ac.nz • Lisa Hosker (Course Advisor) l.hosker@auckland.ac.nz

COURSES Project Management COST: $1895 + GST DURATION/ENROLMENT: 2 days PRESENTER: Rob Verkerk On campus or in-house

Negotiation Skills COST: $1995 + GST DURATION/ENROLMENT: 2 days PRESENTER: Doug Robertson On campus or in-house


Presentation Skills

COST: $1995 + GST DURATION/ENROLMENT: 2 days PRESENTER: Nick Read On campus or in-house

COST: $2295 + GST DURATION/ENROLMENT: 2 days PRESENTER: Roseann Gedye On campus or in-house

Marketing Management COST: $1995 + GST DURATION/ENROLMENT: 2 days KEY TUTORS: Steve Bridges On campus or in-house

+64 (3) 364 2987 ext 3622, paul.ballantine@canterbury.ac.nz

PROGRAMMES Master of Business Administration

UNIVERSITY OF CANTERBURY SCHOOL OF BUSINESS AND ECONOMICS

Influencing and Persuading Skills COST: $2095 + GST DURATION/ENROLMENT: 2 days PRESENTER: Roseann Gedye On campus or in-house

Strategic Planning COST: $1995 + GST DURATION/ENROLMENT: 2 days KEY TUTORS: Brian Travers On campus or in-house

Motivation and Leadership COST: $1995 + GST DURATION/ENROLMENT: 2 days PRESENTER: Dr Lester Levy On campus or in-house

Business Skills for New Managers COST: $1995 + GST DURATION/ENROLMENT: 2 days PRESENTER: Doug Robertson On campus or in-house

Finance for Non-Financial Managers COST: $1995 + GST DURATION/ENROLMENT: 2 days KEY TUTORS: Susan Hansen On campus or in-house

Mental Toughness COST: $1995 + GST DURATION/ENROLMENT: 2 days PRESENTER: Jamie Ford On campus or in-house

The University of Canterbury is ranked within the top 3% of universities in the world. The School of Business and Economics is ranked in the world top 100 for Accounting and Finance, and top 200 for Economics and Econometrics. In 2006, the School celebrated the centenary of NZ’s oldest Bachelor of Commerce degree and 2014 will mark the 30th anniversary of our internationally accredited MBA programme. UC is committed to offering you the opportunity to gain an internationally recognised qualification with courses underpinned by leading-edge research in a vibrant learning environment. Private Bag 4800, Christchurch 8140 Ilam Road, Christchurch Ph: +64 3 364 2316, 0800 VARSITY (827 748) Email: enquiry@mang.canterbury.ac.nz Website: www.mba.canterbury.ac.nz

KEY PERSONNEL • Sonia Mazey (Pro-Vice-Chancellor), School of Business and Economics, +64 3 364 3067, sonia.mazey@canterbury.ac.nz • Tony Mortensen (MBA Director), School of Business and Economics, +64 3 364 3712, tony.mortensen@canterbury.ac.nz • Paul Ballantine (Head of Department, Management), School of Business and Economics,

SUITABLE FOR: Experienced professionals looking to develop their general management skills and to build a foundation for a lifetime of leadership. COST: New Zealand citizens and permanent residents $31,820. International candidates $48,800. ACCREDITATION: Association of MBAs (AMBA) DURATION: 15 months full-time; 2.5 to 5 years part-time PREREQUISITES: Minimum of 5 years relevant work experience and an undergraduate degree. International applicants need to provide IELTS/TOEFL and GMAT scores. SPACES AVAILABLE: 35 KEY TUTORS/FACULTY: Tony Mortensen – MBA Director FORMAT: On campus (Christchurch) DESCRIPTION: UC’s internationally accredited, world-class MBA programme places emphasis on the development of responsible leadership founded on sound business acumen, a strategic perspective and innovation. The programme supports individuals who want to make the transition into significant and contributing leadership roles. APPLICATIONS CLOSE: 10 December 2012

Graduate Diploma in Business Administration SUITABLE FOR: Technical and professional people looking to develop their leadership and management abilities. The GradDipBA is particularly suitable for those who do not have an undergraduate degree as it provides a pathway to the UC MBA programme. COST: New Zealand citizens and permanent residents $15,912. International candidates $24,386. DURATION/ENROLMENT: 8 months full-time; 20 months to 4 years part-time PREREQUISITES: Minimum of five years relevant work experience and an undergraduate degree (those without an undergraduate degree may be considered in consultation with the MBA Director). International applicants need to provide IELTS/TOEFL and GMAT scores. SPACES AVAILABLE: 35 KEY TUTORS: Tony Mortensen – MBA Director FORMAT: On campus (Christchurch)

INVEST IN YOUR FUTURE wITh a pOSTgRadUaTE bUSINESS dEgREE Supported distance learning allows you to find the optimal work-life-study balance. • Master of Business Administration (mba) • Master of Human Resources and Organisational Development (mhrod) • Master of Professional Accounting (mpa)

Southern Cross University CRICOS Provider: NSW 01241G, WA 02621K, QLD 03135E

2150

Contact us today for more information: 0800 MBA DBA www.manukau.ac.nz/postgraduate • mbadba@manukau.ac.nz

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Managing People


Continued from page 59

DESCRIPTION: The GradDipBA is designed to enable busy professionals to continue their learning and development while remaining in full-time employment.

Postgraduate Certificate in Strategic Leadership SUITABLE FOR: Experienced managers who are keen to develop their leadership capability and future career prospects. Postgraduate Certificate in Strategic Leadership courses can be credited to both the Graduate Diploma in Business Administration and the UC MBA programme. COST: New Zealand citizens and permanent residents $7,836. DURATION/ENROLMENT: 6 modules (taught on a Friday and Saturday) over 2 years AVAILABLE: Part time PREREQUISITES: Minimum of 5 years relevant work experience, undergraduate degree (those without an undergraduate degree may be considered in consultation with the MBA Director). International applicants need to provide IELTS/TOEFL and GMAT scores. SPACES AVAILABLE: 30 per module KEY TUTORS: MBA Staff FORMAT: On campus (Christchurch) DESCRIPTION: The Postgraduate Certificate in Strategic Leadership meets the demands of business professionals by providing leadership and strategy courses in a modular format. The six modules include: Leading Others, Leading Ourselves, Leading Change, Managing People and Performance, Leading Sustainable Enterprises, and Business Strategy and Innovation. Each module provides practical evidencebased tools and utilises frameworks that are focused on building capability in managerial leadership and strategy. APPLICATIONS CLOSE: A month before module start date.

Graduate Diploma in Management Suitable for: Candidates from non-commerce backgrounds who wish to make their eventual career in Management; OR students without the necessary background for a BCom(Hons) or an MCom in Management who wish to be fully equipped to continue to these degrees; OR candidates from management or commerce backgrounds who graduated some time ago and who are now seeking to update their knowledge and skills. COST: To work out your fees, go to www.canterbury. ac.nz/enrol/costs.shtml. Fees are listed for each individual course so you can add up the fees for each course you intend to enrol in. NZQA REGISTERED: Yes DURATION: One year full time with a maximum 4 years part-time. PREREQUISITES: 1. Candidates must have achieved a B+ average or better in the final majoring year of their undergraduate degree. 2. They shall have either qualified for a degree in a New Zealand University; or been admitted ad eundem statum as the holder of such a degree, and been approved as a candidate for the Diploma by the Academic Board. 3. Overseas applicants must make a formal application to the Registrar at the University of Canterbury for ad eundem statum admission to the University. 60 | management.co.nz | NOVEMBER 2012

4. All applicants are required to have a high level of proficiency in spoken and written English. International applicants will need to complete an IELTS or TOEFL test. The following minimum scores are required but higher scores are recommended: • An IELTS score of 6.5-7.0 (with no section lower than 6) OR • A TOEFL score of 600 or above and a TWE score of 5-6 (paper based) OR 250 with not less than 5.0 for the essay and no section score less than 23 (computer based). SPACES AVAILABLE: Unlimited KEY TUTORS: Department of Management Staff FORMAT: On campus (Christchurch) and online DESCRIPTION: The Graduate Diploma in Management provides advanced undergraduate management training for graduates from a range of backgrounds. Students will gain an understanding of the concepts, tools, frameworks and language of management. The Diploma serves as an entry point into the UC Honours and Masters programmes in Management (if entry criteria is met). APPLICATIONS CLOSE: Can apply anytime for a Semester One or Two start.

THE UNIVERSITY OF OTAGO’S BUSINESS SCHOOL

close in January), Queenstown - July intake (applications close in June). PREREQUISITES: Undergraduate degree or relevant work experience/qualifications. SPACES AVAILABLE: 35 KEY PERSONNEL: Damian O’Neill (Programme Director), damian.oneill@otago.ac.nz FORMAT: The programme consists of seven modules. Each module consists of an intensive three-day block course with additional projectbased assignments. The programme concludes with a five-month practical project based on the student’s or local entrepreneur’s new venture.

THE UNIVERSITY OF WAIKATO CENTRE FOR CORPORATE & EXECUTIVE EDUCATION

Private Bag 3105, Hamilton Ph: 07 838 4198 or Freephone: 0800 800 891 Fax: 07 838 4675, Email: execed@waikato.ac.nz Website: www.execed.ac.nz

KEY PERSONNEL

The University of Otago’s Business School offers a range of courses and qualifications from undergraduate level right through to executive education. The School is EQUIS and AACSB accredited which ensures qualifications are of an international standard and globally portable. Otago Business School, University of Otago PO Box 56, Dunedin 9054 60 Clyde Street, Dunedin 9016 Phone: 0-3-479 8149 Email: business@otago.ac.nz Website: www.otago.ac.nz/business Facebook: www.facebook.com/otago.b.school

KEY PERSONNEL • Professor George Benwell (Dean, School of Business), dean@business.otago.ac.nz • Mark Wilesmith (Academic Manager, School of Business), mark.wilesmith@otago.ac.nz

MASTER OF ENTREPRENEURSHIP www.otago.ac.nz/entrepreneurship SUITABLE FOR: Recent graduates and professionals who aspire to become entrepreneurs. QUALIFICATION: MEntr DURATION: 15 months – seven three day block courses run over 12 months, and a 20 week business project. LOCATION: Dunedin - February intake (applications

• Dr Peter Sun (Associate Dean Enterprise) • Meshweyla Macdonald (Associate Director Operations) • Andrew Buchanan-Smart (Director, Corporate and External Relations)

CERTIFICATION • AMBA (International MBA accreditation, UK based) • EQUIS (International business school accreditation, based in Europe) • AACSB (International business school accreditation, based in North America) • The Waikato Management School is Triple Crown accredited • ISO 9001

COURSES Master of Business Administration (MBA) SUITABLE FOR: Experienced managers, business owners, or functional and technical specialists looking to increase their general, strategic and leadership understanding of business. DURATION: 2 years part-time DESCRIPTION: The programme focuses on leadership, value creation, sustainability, global experience, expert learning, collaborative partnerships, and communication. It is also designed to provide participants with a broad base of current practice and applied research. It is taught by leading academics and industry professionals from NZ’s leading Business School. The Waikato MBA prepares you for real-world senior management and leadership positions in national and international organisations. The programme includes an International Study Tour in Part Two of the programme.


professionals the skills to take on leadership roles in commerce, the public sector and society. It enhances lateral thinking, expands critical thinking skills, and develops conceptual capabilities and communication style.

VICTORIA BUSINESS SCHOOL

SUITABLE FOR: Students with an undergraduate degree in any discipline. The 12 month fast track programme requires a minimum of three years work experience. The 15 month programme is designed for those without any work experience. Please contact 0800 800 891 for more details on entry criteria. DURATION: 12 months or 15 months (both full-time) DESCRIPTION: The programme provides training in management that will complement your undergraduate degree and provide you with the core skills and knowledge required for a wide range of management and leadership roles in a modern economy. Significant emphasis will be placed on reflective learning, creative problem solving and leadership placed in an international context.

Victoria Executive Development Short Courses SUITABLE FOR: Business and Public Sector professionals COST: $500 to $800/day DURATION/ENROLMENT: 1 day to 1 week (courses run throughout the year) PREREQUISITES: Various SPACES AVAILABLE: 16 participants/ course KEY TUTORS: Victoria Business School academic staff, business leaders and visiting experts. FORMAT: On campus, interactive workshop style. DESCRIPTION: Victoria’s Executive Development short courses give professionals an opportunity to learn from the best without enrolling in a university qualification. Courses cover: Management, Leadership Development, Managing Yourself, Business Improvement and Project Management, Communication & Engagement, Finance, Accounting and Economics.

Victoria University’s Business School offers a world-class MBA Programme and short Executive Development programmes designed for business professionals. They will transform your thinking, change the way you make decisions and develop your leadership skills – taking your career in business to the next level. The MBA and short courses are taught at our Pipitea campus, a stone’s throw from Parliament and Wellington CBD. Our location gives you unlimited access to the latest business research and thinking.

Postgraduate Diploma in Management Studies SUITABLE FOR: Business owners, middle managers or technical specialists looking to improve their understanding of the functional areas of business. DURATION: Part-time over 1-2 years offered in Hamilton and Tauranga. Schedule depends on location. DESCRIPTION: The programme develops management skills, covers functional business areas, and applies learning to existing workplace situations. Graduates of the programme are well equipped to improve performance in middle management roles through the use of strategic and value creation skills acquired in the programme.

PO Box 600, Wellington Level 2, Rutherford House, 23 Lambton Quay, Wellington Other Campus address: Kelburn Parade, Kelburn Ph: 0-4-463 6556, Fax: 0-4-463 6550 profdev@vuw.ac.nz, www.victoria.ac.nz/profdev

KEY PERSONNEL • Tania McGowan (Senior Advisor), Professional and Executive Development, 0-4-463 6561, tania.mcgowan@vuw.ac.nz • Natalie Stevens (MBA Director), Victoria Business School, natalie.stevens@vuw.ac.nz

Customised Corporate Programmes SUITABLE FOR: Managers and Executives in medium to large organisations. QUALIFICATION: Can be designed with Postgraduate Certificate or Diploma options. FORMAT: Combination of workshops, action learning, work-based projects, simulations & assessment. DESCRIPTION: This three dimensional leadership programme is designed with the growth of your organisation in mind. It provides a holistic approach to leadership complemented by practical skills and application. This programme will: • challenge you and your team to explore personal boundaries, focusing on value creation, sense of community while discovering individual leadership styles; • put leadership into context with the rapidly changing business environment and challenge leaders to be bold while balancing risk with resilience, and • focus on your ability to lead within your team, to create a culture of collaborative learning and enable you to identify the undiscovered competitive advantage that your organisation inherently possesses. Please contact us to discuss your needs.

ISO CERTIFICATION: In progress

COURSES Victoria Masters in Business Administration (MBA) SUITABLE FOR: Business Professionals COST: Price on enquiry NZQA REGISTERED: Yes OTHER ACCREDITATION: Association of MBAs (AMBA); EQUIS; AACSB DURATION/ENROLMENT: 32 months part time or 18 months full time (starts Feb/Mar) PREREQUISITES: Personal commitment, business work experience, strong written and oral communication skills and academic competence. SPACES AVAILABLE: Variable KEY TUTORS: Victoria Business School academic staff, business leaders and visiting experts. FORMAT: On campus DESCRIPTION: The Victoria MBA gives business

Looking for fresh leadership learning solutions? Try us for developing leadership behaviours and task management skills for your organisation leaders, managers, team leaders and technical specialists. Short Courses | Custom Workshops and Programmes | Leadership Development Programme Phone Kyran Newell or Nicky Trainor on 03 943 2373

See us on the web at www.development.org.nz

NOVEMBER 2012

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PROFESSIONAL DEVELOPMENT GUIDE

Master of Business and Management (MBM)


ENTERPRISE SUCCESS

Tour of duty? NZ’s tourism sector is at the crossroads. A number of initiatives are set to galvanise action. Nick Grant outlines the options.

Stories of NZ enterprise success

N

ew Zealand’s tourism sector is traditionally touted as an important part of the economy with exciting growth potential. Yet for several years it’s been mired in a malaise that earlier this year prompted some stern words from departing Air New Zealand chief executive Rob Fyfe. In July the high-flying CEO told a parliamentary select committee that NZ Inc needs to urgently review its approach to tourism. Air NZ chairman John Palmer added that he didn’t think progress in tourism has been anywhere near what it needs to be. There are a number of indicators that all is not well. The depredations of the global financial crisis have seen the decline of visitors from some of our traditional tourist source countries. The decrease in arrivals from the UK has been particularly precipitous.

62 | management.co.nz | NOVEMBER 2012

This is the final article in a major eight-part NZ Management series: Stories of NZ enterprise success. Senior business journalists Nick Grant and Vicki Jayne have been drawing on insights from the Deloitte/Management magazine Top 200 Awards and associated lists of the country’s leading companies to conduct a sector-by-sector review of the underlying drivers of success in key parts of New Zealand’s economy. Search www.management.co.nz/archives for the full series of articles.

Tourism New Zealand head Kevin Bowler says if we take our current rolling full year, which includes the Rugby World Cup, we’re only just above 200,000 UK tourists. “Three to four years ago we were up around 250,000. So that’s a very significant reduction in numbers and, with the European economies as they are, we’re anticipating further reductions.” To be fair, overall international visitor numbers had grown in 2010 and 2011. But that was in large part thanks to an uptick in tourists from economies such as China and Australia that have only just begun to be adversely affected by the GFC. A 2.1 percent upswing in total tourist

expenditure in the year ended March 2011 was the second-lowest increase in more than a decade, largely due to the ascendant Kiwi currency. “In the past three years we’ve got a 20-30 percent appreciation against some of our main markets, particularly the US dollar, the euro and the UK pound,” says Bowler, “which is making prices within NZ much more expensive. The analysis we’ve done on that indicates that during the past three years visitors have actually been spending more in their own currency, but it’s still resulting in fewer NZ dollars.” Looming threats to our share of the international visitor market include


ENTERPRISE SUCCESS

while certainly not in crisis – has exuded the sense of a sector spinning its wheels in a rut.

Photo: Fraser Clements

COMETH THE HOUR: COMETH THE MAN? When Martin Snedden was appointed CEO of the Tourism Industry Association (TIA) in June, he was hailed as a canny choice to lead the Association. TIA’s 1500-plus members collectively account for approximately 80-85 percent of the revenue generated by NZ tourism operators. Fresh from presiding over Rugby World Cup Tournament 2011 – widely seen as a national triumph both on and off the field – he has a high profile, is well regarded and, one suspects, has political capital to burn. Like any shrewd newly appointed CEO entering a volatile environment, Snedden’s taken the opportunity to do a lot of empathetic listening and nodding over the past few months. “It’s a honeymoon period, no doubt, and I’ve been using that to try and ignite

Nebulous numbers increased competition in our traditional markets from short-haul European destinations. Meanwhile, other countries, including the US and Korea, are simplifying their visa requirements to attract more visitors from China, which is currently one of our few growing markets. There’s also the issue of air connectivity. “NZ isn’t served by a large number of airlines, and if the airlines aren’t making money, they aren’t going to be investing in additional capacity,” says Bowler. These airlines are striving to maintain supply just below demand to improve yields, he notes, “which makes it really hard to grow your inbound market”. Add several recent headline-grabbing, tourism-related accidents stoking sector fears New Zealand will be seen as some kind of picturesque deathtrap, and it’s small wonder the NZ tourism industry –

Tourism is “a nebulous industry”, according to Westpac chief economist Dominick Stephens, because “it’s not quite clear what does and doesn’t constitute tourism. There’s no ‘tourism industry’ in the system of national accounts – it’s retail, it’s cultural services…” That said, as measured by Statistics New Zealand, the sector is second only to the dairy industry in terms of foreign exchange earnings. It represents a significant slice of our gross domestic product. In the year ended March 2011, the sector’s $9.7 billion from international tourist expenditure made up 16.8 percent of the country’s export income. It generated a direct contribution of $6.9 billion, or 3.8 percent. On top of that, the indirect value added of industries supporting tourism generated an additional $8.8 billion to tourism. During that period the tourism industry directly employed 91,900 full-time equivalents (FTEs), or 4.8 percent of total employment in New Zealand. If the 87,900 FTEs considered to be indirectly supported by the sector are added to the tally, tourism underpins 9.3 percent of NZ’s total workforce. Although the foreign exchange earnings from the international visitor market tend to dominate discussions about the sector, the domestic tourism market actually makes more money. In the year ended March 2011, for example, it turned over earnings worth $13.2 billion. Tourism Industry Association (TIA) head Martin Snedden says it’s crucial we don’t lose sight of that. “There’s a strong industry consensus that this part of tourism has got to be a strong focus going forward,” he says. “It’s our bread and butter. Many of the operators are only in existence to service international visitors because they earn most of their revenue from domestic visitors.” There’s also wide agreement the industry needs access to “more reliable, accurate and accessible market intelligence”, says Snedden, “because decision-making by operators should be driven by hard facts, not just by instinct”.

NOVEMBER 2012 management.co.nz | 63


ENTERPRISE SUCCESS

the underlying cause of which is the new structure of the global economy. Instead, he suggests the prospects for our tourism The tourism industry is “caught within the net” of a tax system that’s structurally set up to exports could be improved by such poliencourage land-intensive forms of production at the expense of other forms of exporting, cies as pursuing more open skies agreeargues Westpac chief economist Dominick Stephens. ments to increase airline capacity. “Because we don’t have a capital gains tax and we do have full deductibility of interest costs, He points to an Australian tourist investment that involves land – such as farming or residential property – basically contributes boom in Queenstown in recent years as less to schools and hospitals than other forms of investment and exporting, an example of the fruits of which then have to carry a much heavier tax burden. They also find it a bit more such government negotiadifficult to obtain finance in the first place, because the banks like to secure tions – and tax reform (see finance against land holdings. box story “Taxing issue”). “So tourism operators face a tax system that’s really stacked against them, Other opportunities a structural headwind that blows contrary to NZ’s desire to diversify its exports discussed at the summit orientation.” included how the wider NZ tourism industry can something that might help,” he says. “It’s pick why and place blame. connect better with the been a pretty tough time in the tourism Almost all the energy was Dominick Stephens. growing cruise industry industry – as well as a lot of other indus- directed at what things (which brought 174,000 tries, obviously. In such circumstances it’s we can do to generate an improvement.” visitors to NZ last year), the need to spenot unusual for people to sort of freeze One of these is what Snedden calls an cifically cater to the forecast increase in and not quite be able to get into, firstly, a urgent requirement for the commercial outbound traffic from Asia over the next state of acceptance and, secondly, a state operators who are the industry’s engine decade, and the way in which, as Bowler of starting to actively sort out what some “to develop a lot more collective self- puts it, “the growing babyboomer market of the solutions might be.” confidence and self-esteem” and ensure is very orientated towards the sorts of Snedden admits he used the change in they’ve got a place at the policymaking experiences NZ can deliver”. leadership to generate a change in mind- table. set. “That’s no criticism of anything that’s “Central and local government are CREATING MOMENTUM gone before me but the reality is it’s always vital partners of tourism,” Snedden is at Tourism Holdings (THL) CEO Grant an opportunity when a new guy comes in pains to point out. “Any stance I’m tak- Webster heartily agrees the NZ tourism to provide leadership.” ing is not looking to undermine that. It’s sector needs to keep its eye on the horizon. Snedden characterises his relative lack about strengthening the outcomes that But he sounds a note of caution about the of knowledge about tourism when com- the support we’re getting from those dangers of entirely shifting focus from ing into the job as both an advantage and agencies actually produces for the invest- traditional – albeit declining – markets disadvantage. It’s required him to hit the ment they make.” to emerging ones. road to gain an on-the-ground appreThat said, “as an absolute start point, “When you’re talking about growth ciation of various tourism operations, the private sector industry has to stand markets versus traditional ones, the iswhere they fit in the sector and what their up, claim ownership of its territory and sue is visitor numbers versus value to issues are. display a togetherness that significantly the economy,” he says. “And the total “It’s also given me licence to ask some improves its chances of success”. Part of value from traditional markets still well pretty simple questions,” he says. It’s also that includes “taking ownership of our exceeds what’s being gained out of the provided operators with the chance to story” (see box story “Whose story is it Asian markets.” offload old and recurring grievances on anyway?”) He cites as an example, the fact that him. Westpac chief economist Dominick on a per-visitor basis Germany is NZ’s This three-month fact-finding phase Stephens spoke at the summit, where he strongest market. German tourists are was capped off with a one-day TIA noted “passion and enthusiasm to drive our longest stayers and highest spenders. Summit in early October. With a theme things differently. The world is changing “And it’s a long way off China in of ‘Think Different’, the event served as and I detect within tourism a willingness particular reaching anywhere near those both an industry barometer and rev-up. to confront those changes.” kinds of value targets,” he says. “So there���s To Snedden’s mind, the conference has One of Stephens’ main messages to a volume and value equation that needs cemented in place a high level of accept- attendees was that there’s little to be to be played in tourism.” ance of the fact that times are tough. “But gained from the Government intervenTHL is firmly positioned in the value there isn’t an obsession with trying to un- ing to devalue the historically high Kiwi, segment of the market. Listed on the NZ

Taxing issue

64 | management.co.nz | NOVEMBER 2012


ENTERPRISE SUCCESS

Whose story is it anyway? Martin Snedden, CEO of the Tourism Industry Association (TIA), is a firm believer that people in the wider tourism industry need to work together on forming the big picture story of what tourism, or the visitor economy, is about. “There isn’t a galvanising story at the moment. There are fragments of it – and to some extent the 100% Pure brand is part of that – but there isn’t a cohesive story industry members can instantly tell you that clearly motivates them and is something that would also inspire visitors. “Facilitating that is something TIA is going to take leaderMartin Snedden. ship of over the next few months.” Whether Snedden will achieve the advent of an industry-owned tourism story that’s “evidencebased and people can buy into” remains an open question. There’s little evidence of government interest in allowing the private sector to call the shots in this area. In October it was announced an Australian design agency had been appointed to develop “the New Zealand story”, which will be used to promote the country internationally to boost exports. “It’s not about replacing Tourism New Zealand’s 100% Pure branding,” said Trade Minister Tim Groser when the initiative was first revealed in August. He insists that campaign “has been a remarkable success and will continue to be at the heart of our international tourism brand”. Meanwhile, “the latest iteration of the 100% Pure campaign, while not a Hobbit ad per se”, says Tourism NZ head Kevin Bowler, “does tilt its hat towards Middle-earth and recognises the importance of the connection between the films and NZ”. There’s some skepticism about how effective this will be. David Beatson – a former senior executive at both the New Zealand Tourism Board and Air New Zealand – points out a 2004 report into the impact of the original Lord Of The Rings trilogy found just one percent of tourists cited the films as the main reason for their visit. Together, they represented a mere 0.5 percent lift in revenue.

stock exchange and the largest provider of holiday vehicles for rent and sale both here and in Australia, the company’s been a reliable annual inclusion in the Deloitte/ Management magazine Top 200 for over a decade. It has hit one or two potholes in recent years, however. In the past few years the company has been experiencing the same visitor arrival-related problems as the rest of the sector, which Webster advocates combating with the retail approach he learnt during his earlier career in the FMCG sector. “We’ve got to keep costs low and find other ways to reduce costs so we can compete on price internationally,” he says.

“And we have to aggressively promote NZ from a sales perspective.” Four years ago, though, THL’s most pressing issues were internal, operational ones. A perusal of Deloitte/Management magazine Top 200 figures provides indicators of how this impacted on THL’s balance sheet – wildly fluctuating after-tax profit and a four-year slog to top 2007’s turnover of $194 million. Now, though, the company’s recently released, upbeat annual report supports Webster’s assertion that “THL’s creating really strong momentum”. Turnover, for example, is its highest yet, at $209 million. He credits two things for helping the

company: the adoption of a design philosophy that sits at the heart of THL; and a systematic improvement of its decisionmaking processes. Of the former, Webster points to the importance of joining NZTE’s Better by Design programme a couple of years ago. “It’s helped us gain an understanding of how to create new products for customers and to think about our business from a very different, customer-centric perspective,” he says. Webster says one of his biggest fears is that “NZ risks losing its presence in some of our core markets, because once you lose it, you have to spend a lot more money to get it back over time. We have to work collectively as an industry to continue to drive that presence.” That desire chimes with Snedden’s. But is concerted collective industry action a realistic prospect, given Kevin Bowler’s observation that “even calling the tourism sector an industry is quite a stretch – it’s really an organic collection of businesses striving to succeed in their own area of interest”. “I would hope so,” says Webster, “and to be perfectly honest, I’d back Martin Snedden to make it happen. Why? Because he’s got a brand, he’s got an intelligence and openness, while also being absolutely prepared to put himself out there and make suggestions and really guide and direct. I fully support him in that, because the greater good has to start to play a part.” M Nick Grant is a freelance journalist. nof.grant@gmail.com

NOVEMBER 2012 management.co.nz | 65


M

EXECUTIVE HEALTH

PETER TYNAN

How to bounce back

A

Enhancing wellbeing • Eat real food – meat, fish, poultry, eggs, vegetables, healthy fats, nuts & seeds, fruits. • Forget fake foods – foods high in refined grains, added sugars and fats. • Indulge sensibly – a glass of wine, a piece of dark chocolate, a small wedge of cheese. • Get outside in a place you find relaxing. • Embrace the sun – wisely without burning. • Play and have fun with friends or family. Random, spontaneous games add fun and laughter to your life and your fitness.

pressures of the economic downturn. People are being asked to do more with less, or there may be the uncertainty of restructuring or financial difficulties on the home front. Equally, the customers your people are working with may be that much more stressed. Resilient employees are better equipped to deal with these situations – they are able to ‘keep calm and carry on’, keeping productivity and team morale high. But for the businesses we work with, it’s not just about the bottom line. They genuinely care about, and want to help, their staff. In September, the overwhelming response to a resilience workshop Southern Cross Health Society organised in Christchurch reinforced just how important ongoing workplace support for wellbeing is. More than 400 people turned out to a free three-hour workshop for the city’s employees. Over 18 months had passed

since the devastating February 2011 quake, yet the appetite for information and ideas on how to manage stress and keep well was as strong as ever. The workshop covered building emotional resilience, better sleep and physical wellbeing, and was run by Christchurch workplace wellness provider Synergy Health. Brad Norris of Synergy Health says a major source of stress – and challenge to resilience – can come about when our personal values are not aligned with our work, activities or situation. An event such as the earthquake, and the resulting life changes, has created tensions in this regard for some. Says Norris, “That’s why it’s really important to continually ensure the way we live, and what we do each day, matches what’s truly important to us.” M Peter Tynan is chief executive of Southern Cross Health Society.

Healthy staff means higher productivity Covering staff with Southern Cross health insurance means less sick days, quicker return to work1 and it’s an attractive incentive for retaining and recruiting employees. It all adds up to a more

productive and profitable business. Your profits, not ours. Because we’re not for profit, we’re for you. To find out more, call Southern Cross Health Society on 0800 323 555 or visit our website healthybusiness.co.nz

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Healthy people healthy business Southern Cross Medical Care Society, Level 1, Ernst & Young Building, 2 Takutai Square, Auckland 1010

66 | management.co.nz | NOVEMBER 2012

Photo: thinkstockphotos.com

lifetime of good health means looking after our mental as well as physical wellbeing. Maintaining good emotional health is vital. We need to continually make sure our resilience is shored up for times when it will be tested. And what we need to bounce back effectively is likely to alter over time. Like exercise, we can work on this every day – even if it is just a small amount. Resiliency refers to an individual’s capacity to adapt to adversity or change. Resilient people are characterised by flexibility and a sense of perspective. They can bounce back from disappointment, difficulties and changing circumstances. They accept these as a natural part of life and are able to move through and onwards. The benefits of emotional resiliency are becoming increasingly appreciated by New Zealand employers. Over the past couple of years, resiliency training has become the workshop most requested through Southern Cross Health Society’s corporate wellness programme. Resiliency training acknowledges that the lives and strengths of individuals will vary hugely. Rather than address certain situations, resiliency training works by giving people the tools, information and ideas to use when faced with challenges – focusing on things such as nutrition, exercise and sleep. The heightened popularity of these courses is in large part due to the extra


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EXECS ON THE MOVE

New Zealand Trade and Enterprise (NZTE) has made five appointments to its international team: Clayton Kimpton (pictured), a senior commercial advisor, is the new regional director for India, Middle East and Africa. He will join NZTE in January 2013 from commercial law firm Kensington Swan where he is chief executive partner. Currently regional director for North East Asia, Shaun Conroy will start his new role as regional director for East Asia in January. Reflecting the growing importance of Indonesia, Tim Anderson has been appointed to the new role of trade commissioner and joins NZTE this month from Wellington commercial law firm Gibson Sheat. Ryan Freer has been appointed as the new trade commissioner for South Korea, and Peta Conn has been appointed as trade commissioner/consul general in New York.

The New Zealand Rugby Union (NZRU) has appointed Jannine Mountford as its chief financial officer, a role created to replace that of general manager corporate services, which was vacated when Kirsten Patterson moved to the NZ Institute of Chartered Accountants. Mountford, currently commercial manager of Fletcher Building Roof Tile Group, will take up her new position in late January.

Chris Doak (pictured), chief executive at Hamilton Airport for the past seven years, has announced that he will leave the company in January 2013. No new CEO will be appointed following his departure, rather two current senior managers will take on additional responsibilities. Chief financial officer George Clark has been appointed to the newly created role of general manager commercial, and operations manager Simon Hollinger has been appointed to the new role of general manager operations.

After nine years at the helm of Waikato Innovation Park, Derek Fairweather (left) is leaving to head up Dairy SolutioNZ, formerly a wholly-owned subsidiary of the agri-focused technology park. Now a stand-alone entity, Dairy SolutioNZ was Fairweather’s idea. It aims to take the world’s best farming technologies and practices, many from New Zealand, to global regions experiencing food crises. Stuart Gordon has been appointed to

Heritage Hotel Management has welcomed a former employee back appointing Vicki Bretherton as general manager of Heritage Hanmer Springs. She replaces Tony Howlett who has been appointed general manager – sales and marketing for Heritage Hotel Management based in the Auckland corporate office. Bretherton has spent the past seven years as regional manager for the Air New Zealand South Island Koru Lounges.

the role of interim Waikato Innovation Park CEO. He has worked for Dairy SolutioNZ for the past four years as global development director and is a former CEO of Livestock Improvement Corporation. The University of Otago has appointed two new professors of management whose research and teaching has a strong international focus. André Everett was previously an associate professor of International Management in Otago Business School’s Department of Management, while Elizabeth Rose, who will take up her position in February, is currently a professor of International Business at Finland’s Aalto University School of Business. In his new role as sales director at emergency assistance company First Assistance, Craig Ross will focus on driving business growth and customer retention. He will also head new business products and assist with the international client growth side of the business. In his previous role, he was commercial director at LeasePlan. Professional fleet risk management company SurePlan New Zealand has appointed Craig Thrussell as business development manager. In the newly created role, Thrussell will be responsible for leading sales and marketing activity for the organisation, specifically focused on direct non-brand related engagement at the HR and CEO level.

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November

23 Effective Audit Committees. Christchurch. Institute of Directors. iod.org.nz

8-9 Chairing the Board. Auckland. Institute of Directors. iod.org.nz

15-16 Storytelling for Leaders: The Power of Story. Auckland. University of Auckland Executive Education. exec.auckland.ac.nz

8-9 Marketing Fundamentals. Wellington. University of Auckland Executive Education. exec.auckland.ac.nz

15-16 The Art of Deliberate Success. Auckland. University of Auckland Executive Education. exec.auckland.ac.nz

9 Governance Essentials. Auckland. Institute of Directors. iod.org.nz

16 Not-For-Profit Governance Essentials. Hamilton. Institute of Directors. iod.org.nz

12 Networked Leadership: Collaborating for Success. Christchurch. Organisation Development Institute. development.org.nz

19-20 The Leadership Challenge. Auckland. University of Auckland Executive Education. exec.auckland.ac.nz

12-13 Effective Performance Conversations. Auckland. University of Auckland Executive Education. exec.auckland.ac.nz

19-20 Change Management. Auckland. University of Auckland Executive Education. exec.auckland.ac.nz

12-13 Complete Presentation Skills. Wellington. Effective Speaking. effectivespeaking.co.nz

27-28 Practical Leadership Skills 2: Leading a Team Successfully. Christchurch. Organisation Development Institute. development.org.nz

19-20 Effective Communication Skills. Auckland. University of Auckland Executive Education. exec.auckland.ac.nz

27/11-2 /12 Company Director’s Course. Auckland. Institute of Directors. iod.org.nz

13 Understanding Project Management. Project Plus. projectplusgroup.co.nz

19-23 PRINCE2 Foundation & Practitioner. Project Plus. projectplusgroup.co.nz

14 Essential Business Writing Skills. Christchurch. Organisation Development Institute. development.org.nz 14 Database Intelligence. Auckland. University of Auckland Executive Education. exec.auckland.ac.nz 14-15 Management for Experienced Managers. Auckland. University of Auckland Executive Education. exec.auckland.ac.nz 14-15 Business Modelling. Auckland. University of Auckland Executive Education. exec.auckland.ac.nz 15 Bullying in the Workplace. Auckland. Minerva Learning. minervalearning.co.nz 15 Managing Multiple Priorities. Project Plus. projectplusgroup.co.nz 15-16 Strategic Management. Christchurch. Organisation Development Institute. development.org.nz

70 | management.co.nz | NOVEMBER 2012

20 Contract Management. Christchurch. Organisation Development Institute. development.org.nz 21-22 Marketing Management. Auckland. University of Auckland Executive Education. exec.auckland.ac.nz

24 Not-For-Profit Governance Essentials. Christchurch. Institute of Directors. iod.org.nz 26-27 Motivation and Leadership. Auckland. University of Auckland Executive Education. exec.auckland.ac.nz 26-27 Complete Presentation Skills. Auckland. Effective Speaking. effectivespeaking.co.nz

28-29 Business Skills for New Managers. Auckland. University of Auckland Executive Education. exec.auckland.ac.nz 29 Project Coordination Skills. Project Plus. projectplusgroup.co.nz 29-30 Appreciative Inquiry for Change Leaders. Christchurch. Organisation Development Institute. development.org.nz

December

21-22 Stakeholder Management. Auckland. University of Auckland Executive Education. exec.auckland.ac.nz

3 Social Media 101. Auckland. University of Auckland Executive Education. exec.auckland.ac.nz

21-23 Interpersonal Skills For Leaders: Building Productive Work Relationships. Christchurch. Organisation Development Institute. development.org.nz

3-4 Influencing and Persuading Skills. Auckland. University of Auckland Executive Education. exec.auckland.ac.nz

22-23 PMP (Project Management Professional) Study Group Programme. Project Plus. projectplusgroup.co.nz 22-23 CAPM Study Group Programme. Auckland. Project Plus. projectplusgroup.co.nz

5-6 Mental Toughness. Auckland. University of Auckland Executive Education. exec.auckland.ac.nz 6 Project Management Advanced. Christchurch. Organisation Development Institute. development.org.nz


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TOP TIPS

PAUL ROBINSON

How to retain talent in uncertain times Assess

Review

In uncertain economic times, communicating your company’s current strategic position is paramount in reassuring employees and aiding retention. Focus on open and continuous communication throughout the organisation. Align your objectives with those of your workforce. And ensure your employees feel valued for their hard work in achieving these goals. Include factors such as your short- and long-term business goals; plans for expansion or diversification; the wider market in which you operate; and the diversity and quality of your workforce.

Remember to consider the broader political, social and technological environments within which your organisation may need to succeed, and gain a fundamental understanding of the current economic environment, both local and international. Planning for your company’s future workforce five or 10 years from now will help ensure you meet the ever-changing needs of your customers and employees. It’s all about adopting an ‘outside-in’ perspective to successfully plan for the future.

Consider

Integrating talent management into your core strategic and workforce planning processes will help attract, retain and engage staff in a time where your employees may be uncertain about their job security and progression. Create individual career paths to allow your workforce to grow and increase engagement. Increase on-the-job training and development opportunities so employees are continuously learning thereby creating a culture of excellence. Focus more on coaching and mentoring relationships as this is what many people are looking for today to build their knowledge, skills and capability more effectively.

Integrate

Gain indepth understanding and evaluate what your business stands for. Ensure you successfully communicate this message to your employees, potential employees and the market. This will give them an insight into your company’s core attributes and strengths, and will help prevent talent shifting to a competitor. Randstad research has shown the top factors for a successful employer brand, from an employee’s perspective, include: knowing their job is secure; that they’re working for a stable, financially healthy organisation; and the culture and working atmosphere is positive, supportive and enjoyable.

Paul Robinson.

Offer More than ever, employers need to recognise the importance of adopting flexible work practices, as it’s a major factor in successfully retaining talent in the workplace today and in the future. Randstad’s recent research shows that of the employees who don’t currently have remote work options available to them, 68 percent say the idea is appealing or very appealing. The future workforce will be a blended environment of permanent, virtual and transient teams of people, all using technology to communicate and work remotely. This can bring substantial costsavings. To enable productivity and business success, focus on developing a culture of trust and accountability as employees enjoy more remote work options. M Paul Robinson is the director (NZ) of specialist recruitment & HR services company Randstad.

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NOVEMBER 2012

Vol 10 No 5

76 Doug Matheson on executive directors 78 The future of boards 80 What I hate about boards

Lesley Whyte Championing Women on Boards p74

EDITOR: Reg Birchfield reg@rjmedia.co.nz

PRODUCTION MANAGER: Fran Marshall franm@mediaweb.co.nz

CONTRIBUTORS: Doug Matheson, Iain McCormick

PRINTING & PREPRESS: PMP Print

Copyright @ 2012: Mediaweb Limited. All material appearing in The Director is copyright and cannot be reproduced without prior permission of the publisher. Editorial contributions are welcomed. Letters to the editor are also welcomed, but pen names are not acceptable.

A MEDIAWEB PUBLICATION

BUSINESS DEVELOPMENT MANAGER: Rod Myers, 09 372 6444, 027 484 8046 bdm@management.co.nz ADVERTISING MANAGER: Trish Day, 027 561 6556 trishd@mediaweb.co.nz DESIGNER: Jennifer Adams

Phone 09 529 3000 Fax 09 529 3001 enquiries@mediaweb.co.nz www.mediaweb.co.nz PO Box 5544, Wellesley Street, Auckland 1141

The Director is published bimonthly in NZ Management magazine and distributed to selected directors and leaders. Articles are archived on NZ Management’s website www.management.co.nz/archives. The Director is written for readers who need to know about governance in action.


COVERSTORY

Lesley Championing Women Whyte on Boards W

hy set up Women on Boards? I was doing an MBA through Massey University. I wanted to become a director and was elected to Massey University Council. This kick-started my governance career. My corporate services background in risk management and management committee membership of the NZ Society of Risk Management turned out to be valuable boardroom tools.

Equally, there was no one to tell them that being on a board indeed wasn’t for them. No organisation really provided training or networking tailored to women. Training tended to be offered during the week, lasted a full day and was expensive. Networking events were over breakfast, which is usually the busiest time of the day for a family. So, we launched the concept in November 2011 and gave ourselves 12 months to test the market.

How did you get started? WOBNZ was co-founded by Dr Rosanne Hawarden, who is a director of Computer Support Enzed, and me. We wanted to provide “tools and empowerment” to women to help them achieve their governance goals through education – formal or informal. I became CEO and Rosanne took over as chair. It was my job to set up the organisation, develop funding and partnership programmes and talk to potential supporters. Our founding rationale was based on the fact that no one organisation existed to assist women to get into governance. Women interested in governance had nowhere to go to find out what they needed to do to achieve their goal.

What did you want to accomplish? We set out to promote the idea of having more women in both senior executive and governance roles. We also wanted to create affordable training programmes for women offered at times that wouldn’t dramatically impact on their work or study. We wanted a national organisation that had affordable membership fees making it accessible to all women and free networking events that were held at times which suited those who studied or juggled work and home commitments. And finally, we wanted it to become a “one-stop-shop” for women to talk about their governance career goals and what they needed to do in order to achieve these goals.

74 |

THE DIRECTOR | NOVEMBER 2012

We also wanted to encourage existing women directors who wanted to take on additional governance roles to be part of the organisation and become aspirational role models. And we wanted men to participate in our organisation through membership and partnerships. Are you succeeding? We have achieved what we set out to accomplish in the first 12 months. WOBNZ is now an incorporated society and established as an advocacy group. It uses research to support its promotion of increased representation of women on boards; to identify the benefits boards gain from the diversity and better gender balance. We have recently established a partnership with research company Colmar Brunton through its CEO Jacqueline Ireland. We focus on bringing through the next generation of board-ready women by developing their existing leadership skills. We use social media forums as our communication pipeline. Traditional letter correspondence is not part of our communication regime. Women network differently from men. Many of our members balance working full time with running or managing the house


New Zealand’s first Women on Board’s Gender Diversity Summit, held in Auckland this month, effectively also marked the end of the first year’s reign of the pressure group’s co-founder and chief executive Lesley Whyte. She talked to Reg Birchfield about WOBNZ, why she felt compelled to establish it and where it goes from here.

and family. Our branch networking events are at times which better fit with their diaries. Why set up the Gender Diversity Summit? The event is designed to bring business women together, particularly future directors and the C-suite set. We want them to have a say in what gender diversity leadership looks like. The summit, which will happen every year, is an important opportunity for women business leaders, present and future, to identify what is needed for women to be treated as boardroom equals. We have come some way recently, but the diversity tsunami that is happening overseas is leaving New Zealand behind. It was good to hear investment managers at a recent risk management conference suggesting they will not invest in companies that don’t have diversity policies. Has the experience of setting up WOBNZ changed your thinking on the need for more women on boards? Yes, in one area. There are groups of wellestablished directors out there promoting gender diversification at board level. They are talking about what the future looks like, establishing mentoring and programmes.

But the women invited to attend their programmes appear to be women who have already achieved boardroom status. Our members are telling us they haven’t been part of any consultation on what the future looks like. It may be that what they want and what is being promoted is the same, but they want their say in an open forum. We think the Gender Diversity Summit will provide some answers and we’ll use the outcomes to supplement our strategy. That’s why we called it a “summit”, rather than simply Gender Diversity Week. What are the greatest stumbling blocks to future progress – and what has emerged as the most promising tangible change indicators? New Zealand needs to both focus on change and on delivering that change sustainably to remain globally competitive. We pushed strongly to have the NZX implement its proposed rule change on greater female board representation on listed companies. We are now working with industries to see how we can assist with championing change in those industries. What is governance missing out on as a consequence of its resistance to change? Research shows that gender diversity at the

board level improves board functioning and decision making. It also encourages independent thinking that serves as a check on management prerogatives. We are missing out not only on gender diverse but also age diverse boards. Gender diversity is not a ‘now’ issue. Drawing from the existing small pool of women and stretching them across more boards to create greater diversity now doesn’t really address the future. We realise change won’t happen overnight, but we need to start with the future to effect greater change through our universities and secondary schools. This is why WOBNZ is launching a 2013 scholarship programme (www.wob.org.nz). We need more organisations to walk the talk with us by becoming partners in this programme. We need more partners to assist with funding and to become part of the development to create a pipeline of women ready and prepared to sit on more boards in future. Where to now for Lesley Whyte? I’d like to be a champion of change. WOBNZ is up and running and will be around for a long time to come. I’d like another directorship of course. Governance is my career now. NOVEMBER 2012 | THE DIRECTOR | 75


Photo: thinkstockphotos.com

No executive directors!

By Doug Matheson

76 |

THE DIRECTOR | NOVEMBER 2012

on the same side. Executive directors reduce transparency and accountability when what shareholders want, and need, is effective leadership and monitoring of management performance. Monitoring t he chief executive’s performance is downplayed when he or she becomes a board member. Boards with executive members don’t scrutinise

‘‘

board are not performing as they should. When the chief executive is also the chairperson, the executive directors have a subordinate management relationship that inevitably has a strong influence on their independence and effectiveness as directors. Good practice governance must be independent of management to ‘get the

‘‘

T

he reputation of directors, boards and their governance performance has taken a beating in the eyes of shareholders, investors, media, regulatory agencies and the public at large. Yes – the environment is tough, volatile and challenging. But many companies have survived, just, when they should have done better. It is a key governance responsibility to anticipate poor performance and ensure strategies are in place and carried out by high performing managers. And on that point, the important question of the effectiveness of executive directors has been raised with respect to the performance of a number of boards. Boards must be independent and hold management accountable. Directors must be able to address poor management performance or non-performance, effectively and promptly. And boards with executive directors do not oversee or scrutinise management to the extent independent boards do. Management dominated boards inevitably increase risk. The entire culture and effectiveness of a board’s management oversight is watered down when executives are also directors. The culture becomes more collegiate. The judge and judged are

Directors must always be in a position to ask management the hard questions.

management to the extent independent boards do. Executive directors commonly support the chief executive and inhibit open debate in front of independent directors. Managers who report to the chief executive have an understandably strong alignment to their CEO – as they should. It is therefore difficult, if not impossible, for them to function independently as directors, monitoring and reviewing the performance of their leader, or of themselves as managers. The board’s examination of management performance is seriously compromised. It is particularly difficult when the chief executive or other senior executives on a

best from management’. To ensure robust oversight, performance scrutiny and good decision-making boards need to be totally independent, entirely objective and removed from the ‘hype’ of what’s going on inside the organisation. Directors must be able to raise concerns spontaneously and discuss them openly, frankly and constructively. They must also be able to review individual shortcomings in the context of the company’s performance, and decide on a course of action there and then. Executive directors make this impossible. To have to ask a fellow director or chair-


ONBOARD

person or chief executive to leave the meeting during an important discussion creates divisiveness, confuses and weakens the discussion. Any decisions are not truly board decisions. Only healthy and robust contention between board and chief executive can ensure optimum management performance, ensure accountabilities are exercised on behalf of the shareholders, and also ensure that fiduciary and other legal obligations are met. Directors must always be in a position to ask management the hard questions. Chief executives, or other managers for that matter, don’t need to be directors to provide management perspectives on matters taken to a board. Indeed, it is their job to do so. Keeping the independent directors informed is a management responsibility, not a governance function. Boards need formal, robust, verifiable and auditable information. However, while managers should not be directors, they must be members of the governance team. Problems also arise when executive directors resign from or are terminated from their management positions. The individual is often able to remain an independent director until voted off or dismissed by shareholders or decides to resign. This is clearly problematic and not good practice governance. Getting on the board shouldn’t be seen as a promotional step for managers. Governance is a different role requiring different competencies, backgrounds, perspectives, personal attributes, and independence. And chief executives or other senior managers shouldn’t be made directors when they retire. Managers can’t be considered independent until some considerable time has passed. A directorship for an immediate past CEO makes life difficult, if not impossible, for the new chief executive. It might seem to provide some continuity, but it compromises change and new thinking. Chief executives need every opportunity to provide new leadership unfettered by the past. When a strong-minded former CEO sits at the board table looking over the successor’s shoulder, it can only complicate an already tough job. Invariably, the new CEO is second guessed or undermined. If new CEOs want to tap their predecessor’s wisdom, they are only a phone call or private meeting away. And executives don’t necessarily make good directors. Boards don’t need management expertise – they don’t manage. Director selection based on sound board composition and competencies inevitably delivers better boards. Separation of responsibilities and accountabilities at the top of the organisation is essential. It ensures a balance of authority and prevents unfettered decision-making powers ending up with an individual. Chief executives should not be chairs. There is an inherent conflict of interest when the two positions are combined. An independent chairperson and board are fundamental to ensuring chief executive accountability. Combining the roles creates an unacceptable concentration of authority and lack of accountability. The board needs an effective chairperson and the company needs an effective CEO. Doug Matheson is a professional director and the author of The Complete Guide to Good Governance in Organisations and Companies and Great Governance: how the best boards work. Email dougmath@xtra.co.nz

Lion’s outgoing CEO Rob Murray will join the Lion board from April 2013 as a non-executive director. Murray originally joined the former Lion Nathan board in 2002 as a non-executive director, before being appointed Lion Nathan CEO in October 2004 and Lion CEO upon the company’s formation in October 2009. Stuart Irvine succeeds Murray as CEO from 3 January 2013. Gavin Walker, who currently chairs ASB Bank, has been appointed chairman of the Guardians of New Zealand Superannuation, the crown entity which manages the New Zealand Superannuation Fund. He succeeds David May, who has chaired the Guardians since inception in 2002. Walker also chairs Sovereign Insurance, CommSec, the Kirin International Advisory Board and the Ultra-Fast Broadband Steering Committee. Former AMP Capital managing director, and current Guardians board member Catherine Savage has been appointed deputy chairman. Fonterra’s chairman elect John Wilson has announced that Sir Henry van der Heyden (pictured) will stay on the board as a farmer-elected director for the first part of next year after he stands down as chairman in December. Ralph Waters will also extend his tenure, as appointed director, for up to six months beyond the 2012 annual meeting in December. Together they will provide valuable guidance as the cooperative moves ahead on the implementation of its Trading Among Farmers (TAF) share trading scheme, Wilson is reported as saying. Fonterra has also appointed three independent directors to its Shareholders’ Fund Board which will direct the TAF programme. The chair is John Shewan (pictured), former PriceWaterhouseCoopers chair and currently adjunct Professor of Accounting at Victoria University in Wellington. The other two are Pip Dunphy, an experienced financial markets specialist, and Kim Ellis, the former CEO of Waste Management. They will be joined on the fund management board by Fonterra directors Sir Ralph Norris and Jim van der Poel. Keith Goodall and Grant Stapleton have been appointed to the board of Mexicali Fresh, a family owned New Zealand restaurant group. Ihug co-founder Tim Wood has recently invested in the business. Mighty River Power has announced the resignation of independent director Parekawhia McLean from its board. Chief executive of Waikato-Tainui Te Kauhanganui Incorporated, McLean said she believes her resignation is in the best interests of both Mighty River Power and Waikato-Tainui. NOVEMBER 2012 | THE DIRECTOR | 77


BOARDBOOKS

Boards in future? Reviewed by Reg Birchfield

T

hink dispassionately for a moment about global trends. Finance market mayhem, cyber crime, grand scale corporate corruption, organisational complexity, environmental apocalypse and terrorism to order are individually and collectively testing the robustness and relevance of corporate institutions. So it is with boards. Are they still relevant? Do they work? Do they, indeed, have a future? Harvard Business School professor Jay Lorsch, an academic the book’s dust jacket calls an “authority” on corporate boards, has gathered the thoughts of a clutch of top-level governance thinkers and practitioners, interviewed 45 directors of some of the world’s largest enterprises and edited their conclusions to create his latest book, The Future of Boards – meeting the governance challenges of the twenty-first century. Boards, he and his contributors concede, haven’t made a good fist of guiding business, particularly but not exclusively, banks and financial institutions, recently. Consequently, capitalism is at a “crucial juncture in the evolution of business and the economy”. Lorsch, who back in 2004 co-authored Back to the Drawing Board – designing corporate boards for a complex world, doesn’t think much progress has been made in rethinking boards and how they operate. Part of the problem is, he suggests, that there’s too much emphasis on financial and legal matters and not enough time given to understanding the human dynamic of governance. Boards are obviously bound by legal and regulatory requirements and deeply involved in financial and strategic choice. But at their most basic level they are groups of experienced part-timers from different careers who “come together to govern a company”, he offers. “Getting such groups to function as an effective governing body is, if nothing else,

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a challenge in establishing and sustaining effective human relationships, not only among board members, but also between the board and its top management, especially its CEO,” writes Lorsch. The book’s contributors explore how boards should function to govern effectively in future. Some focus on what boards should do while others target the leadership issue. Collectively, they think the relationship among directors and how they engage with each other and their senior executives is the “defining factor” in boardroom success. This is hardly revolutionary thinking. That leading academics like Lorsch should be suggesting that the human element of governance is the key to the future says something about what is causing the breakdowns in organisational performance. The contributing authors are mostly from Harvard Business School. A professor of business administration, another of management practice, an adjunct professor who is a former chairman, president and CEO of Merck & Co, a professor of leadership development, one of human relations, the chair of accountancy at the University of Southern California, the vice chairman of global consultancy Marsh & McLennan and a professor of organisational behaviour. Given the reservoir of intellectual horsepower, it’s surprising how few new ideas or evolutionary insights they generate. Instead, they tackle topics like strategies to govern effectively, managing CEO succession, the pay problem and need for a new, actually anything but, paradigm for executive compensation, recognising negative boardroom dynamics, the argument for a separate chair which is more an American issue than it is here, and the argument for a “lead director” – another counter to the combined chairman and CEO role that is still pervasive in the US and, one could

argue, the real reason US governance is shot through with problems. Lorsch and his other contributors are “concerned with what lies ahead for boards”, like the continuing efforts by some institutional investors to “assert themselves and gain power”. Proposals from these shareholders may lead to new legislation or regulations around the way in which boards function, making boardroom life more complicated. Future problems, therefore, will rest in the “ability of boards to navigate any such changes”. What an extraordinary conclusion for so many smart people to come to. Of more concern, they say, is the “growing complexity” of the companies that boards oversee. Globalisation, not any of the issues thrown up in the first paragraph of this review, is the big problem. Rapid changes in technology and growth in the size of companies means companies will become more complex. So, they ask, how can directors who are faced with time constraints and a lack of “deep knowledge” of their companies grapple with even greater problems in the future? That of course is the nub of the matter. And despite the author’s introductory promise that the chapters following would “provide ideas for how boards can best deal with such challenges”, I didn’t see anything of the sort. Perhaps, dear reader, you will.


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What

I hate about boards

By Iain McCormick

I hate boards that won’t make clear, decisive decisions. You know the sort. The board that has a robust debate about an issue and edges closer to a decision. The, just when the consensus is crystallising someone says; ‘I know this is a slight tangent but … ‘. The comment breaks the consensus-building process and the board heads off in a different direction. Unless the chair is astute the emerging consensus disappears and another hour of board time evaporates with nothing to show. Directors must understand the volatility of decision making to be decisive. I hate boards that don’t support their CEOs. Jack Welsh reportedly said boards should ask just two questions: Do we have confidence in the CEO? And, where is the succession plan? If boards do not have confidence in the CEO they should fire him or her and appoint another. If they do have confidence they should show it. Many CEOs, particularly from not-for-profit organisations, suffer unsupportive and ineffective boards. Boards can’t lead effectively without supporting the CEO. This doesn’t mean being uncritical or unchallenging – that is vital. It means clearly and assertively recognising good ideas, good work and good progress. I hate boards that add cost rather than value. It happens when one or two directors, often ineffective ones, delight in asking for extra data, analysis and documentation, disguising their inability to take considered risks

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or make wise decisions. These directors create hundreds of hours of extra work to no purpose. I hate boards that can’t see beyond the CEO’s good news. CEOs want to make the best of situations and present positive pictures to the board – their job often depends on it. Boards must distinguish between CEO-dependent and independent information. Astute directors understand executive ‘spin’ and how to gather independent information. It comes from discussions with senior staff, staff opinion surveys, attending customer, joint-venture partner and supplier meetings where they can talk directly to stakeholders. Board members should read widely, search the internet and generally do their homework. Gathering independent information has nothing to do with distrusting the CEO. It helps supplement and constructively challenge the CEO-dependent information. I hate boards that think there is a positive relationship between the quality of decisions and the time spent discussing them. Often there is an inverse relationship. Endless hours of circular debate deaden the spirit of enterprise. I hate board meetings where inflated egos pollute the atmosphere. These directors invariably talk loudly, frequently and are intent on telling their colleagues how competent, capable or funny they are. I hate vigorous agreement. When directors reach agreement after a robust debate they, for some unknown reason, find it essential to restate their views. The discussion is invariably irrelevant and time wasting. I hate directors who turn up without having read their board papers. It results in lengthy discussions that turn into clarification sessions. If the board papers are too long, too

Photo: thinkstockphotos.com

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eing a director must be the most exciting thing you can do with your clothes on! You get to examine the entrails of some fascinating organisations, watch the tectonic economic forces push and pull results, work with some very exciting and dynamic people and get paid for doing it. But despite the excitement, there are a few things I hate about boards.

boring or in some way confusing, directors should feed this back to the CEO. Many boards go through cycles, asking for more detail, then abbreviated reports and back to detailed papers again. This frustrates CEOs. They see it as indecisiveness. Get the amount of detail right and be consistent. I hate boards that aren’t clearly directed. A key role of the board is to set the company direction. Boards of large organisations may just challenge and approve company direction but, the important point is that direction is established. There is no substitute for one or two-day off-site facilitated meetings to help directors understand the challenges and, after robust debate, decide on a clear direction. I thoroughly enjoy being a director. The process is exciting, dynamic and intellectually stimulating. Occasionally, I hope, I add some value! But too often, boards aren’t sufficiently open to critical self-reflection, honest feedback and review. Boards become stagnant and lack self criticism which keeps boards grounded. Things can, so easily, be so different. Dr Iain McCormick PhD is a governance coach who heads the Executive Coaching Centre and DirectorEvaluation.com


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NZ Management November 2012