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EDITOR’S LETTER

New directions

by Brenda Ward

There have been some big changes in business in the past couple of years. Increasingly, we’re finding that what used to work doesn’t necessarily work any longer. Kiwis are hungry for new and exciting paradigms to help us navigate this volatile world we find ourselves in. As New Zealand has been asking itself the hard questions, at NZ Management magazine we’ve been listening. Time and again the same themes have come up as we’ve talked to the people who drive this country, its business, its infrastructure and its people. From all those conversations, we’ve identified some key themes, from banking to brands, that need to be examined in the light of this new world we’re facing. So that’s what we’re planning to do over the next six months in the magazine. Initiating these conversations is the Deloitte/NZ Management magazine Top 200 Companies programme, which is increasingly becoming a symbol of what is great in New Zealand business. As the Top 200 reaches its 21st anniversary, we see it gathering momentum, becoming a think-tank, a catalyst for change and a growing force in the psyche of New Zealand business. We want to see it become a club of likeminded business people, all working together to make this a better place to live and work. At NZ Management we’re planning to take the values of the Top 200 and nurture them within the magazine, exploring the philosophies that shape our new world. Look out for themes on New Zealand as an incubator, on the new face of banking, on fresh technologies, on sustainability, and on the people, the whanau and the interconnected relationships that make this country so special in the world. This month we begin with social media, which comes roaring out of popular culture to become the hottest new communications tool in the box (see feature on p34). As the new editor of NZ Management I’m proud to be leading a magazine that’s already been talking to our most influential figures for 55 years. Now the magazine moves into a new era, remaining a trusted reporter and adviser, but emerging also as an influencer and thought leader, inspiring us to work together for the future of New Zealand. We’d love to hear how you can help us.

www.management.co.nz A MEDIAWEB MAGAZINE EDITOR Brenda Ward 09-575 8830, editor@management.co.nz CONTRIBUTING EDITOR Reg Birchfield regb@mediaweb.co.nz CONTRIBUTORS Grant Amos, Bob Edlin, Martin Freeth, Pauline Herbst, Colin James, Iain McCormick, Peter Neilson, Gordon Shaw, Peter Tynan ADVERTISING MANAGER Clara Iqbal 09-271 3711, 021-930 887, admanager@management.co.nz DESIGNER Rachel Walker 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 09-845 5114, Fax 09-845 5116 enquiries@mediaweb.co.nz www.mediaweb.co.nz PO Box 5544, Wellesley Street, Auckland 1141

Deloitte/ Management Magazine

TOP 2OO A Bold Spirit

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 © 2010: 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 Benefitz. Subscriptions: One-year NZ subscription (11 issues)

$76.45 (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: 09-845 5114, Fax 09-845 5116, enquiries@mediaweb.co.nz www.management.co.nz New Zealand Institute of Management enquiries to: National Office, Box 67, Wellington; Northern, Box 26001, Epsom; Central, Box 11781, Wellington; Southern, Box 13044, Christchurch.

Vol 57 No 5 • ISSN 1174-5339

JUNE 2010 Management www.management.co.nz 3


INSIDE

Deloitte/ Management Magazine

TOP 2OO

JUNE 2010 • Vol 57 No 5

A Bold Spirit

Understanding the new world

34 COVER STORY

Tech Revolution Harnessing the power of social media THE TOP 200 CAMPAIGN

3

EDITOR’S LETTER

To launch this year’s Deloitte/ Management Top 200 Companies campaign,‘Understanding the New World’, this month we start the first of a series of six themes examining major contemporary issues and opportunities for business. This month, technology meets humanity.

7

IN TOUCH: As I See It, Managers Abroad, News & Views, Focus

14

ON THE MOVE

15

EXECUTIVE DEVELOPMENT

30

NZIM: Mediocre managers Reg Birchfield

HARNESSING THE POWER OF SOCIAL MEDIA If your company’s not into social media, the hottest new rocket in business will leave you in its wake. Brenda Ward asks the experts how Facebook, Twitter and YouTube are changing the universe of marketing and communications.

JUST GOOD BUSINESS

16

LEGISLATION: Care as you earn

17

SUSTAINABILITY: Guilt-free paper Peter Neilson

OPINION

20

HEALTHY LIFESTYLES: The cost of getting sick Peter Tynan

22

BOOKCASE Martin Freeth, Sonya Crosby, Brenda Ward

23

LEADERSHIP NZ: Hands up, leaders! Shawna Murray

24

THOUGHT LEADER: Why isn’t education working? Phil O’Reilly

26

POLITICS: What has the Maori party really won? Colin James

28

ECONOMICS: Kicking profits into touch Bob Edlin

ADVICE

63

PERSONAL DEVELOPMENT: Create the change you want Brenda Ward

64

TOP TIPS: Five workplace rules that are made to be bent Megan Alexander


FEATURES 40

FACE TO FACE: MR TOURISM Kevin Bowler, our new head of tourism, already has a vision of how to build this country’s visitor industry – and it’s a digital future he’s foreseeing.

42

34

SMART COMPANY: INSIDE THE BRAIN OF A TECH TRIBE Scott Barlett says Orcon’s ‘circular’ culture of creativity and innovation has got his internet service provider company to number four telco in New Zealand. Brenda Ward finds out how.

44

INTELLECTUAL PROPERTY: LOCKING UP YOUR IDEAS With the rise of the internet, the risk of losing your hot new product to a rival has suddenly become very real. You can’t shut your ideas up with a lock and key, but you can take steps to protect them, says Simon Martin.

47

VERO AWARDS: WHEN DESIGN WORKS Innovative design thinking has won Designworks a major award, plus the buzz about Bizzone expo.

50

EXECUTIVE ESCAPES: GREAT GETAWAYS

42

Get away for your type of holiday – adventure, relaxation or basking in luxury.

48

FOCUS ON MANAGEMENT 55

KEEPING YOUR BUSINESS SAFE FROM INTERNET THREATS

56

10 WAYS TO BECOME A GREEN BELT

57

CENTRAL COURSES

58

MY 100 DAYS IN CHINA

59

WHAT WHERE WHEN

60

MEMBER COMMENT: Mark Woodard 50


intouch HIGH FLYER’S ADVICE Air New Zealand chief executive Rob Fyfe doesn’t use the terms ‘vision’ or ‘mission’. “The guys on the baggage line would not enjoy that”, he told the finalists in 2009’s NZIM/Eagle Technology Young Executive Award. At a luncheon with them at Auckland’s Jervois Steak House, the winner of last year’s Top 200 Executive of the Year award said he has an interactive and verbal management style and he gave the finalists insights into how he leads and how he has approached his job. His first challenge at Air New Zealand was determining the strategic direction of the airline. “We asked what kind of airline do we want to be – do we want global domination? To be regional? Low-cost?” The airline’s only point of difference was knowing New Zealand better than any other airline, he said. “We need to make New Zealand our reason for being.” Fyfe said research showed what visitors to New Zealand took away with them was stories.“They told us about people they met, experiences they had and we started selecting those stories. One chap said, ‘I walked into a pub and met some people who took us pig-hunting.’ Well, it sounded like a scene out of Deliverance, but they said they felt like they knew these people.” He said the company took those stories and turned them into what they called “themes”: the characteristics that people loved about New Zealanders. The themes lie behind every decision the airline makes, from the wine they choose in-flight to marketing, to new seats. It’s all about ensuring that when visitors get on board “our” aircraft, they experience that “New Zealandness”. Fyfe wants visitors to go away with

stories and for staff to be participants in those stories. “We’re a minor airline – 35th or 36th in the world – and there are much bigger players who could do a lot of damage to us. We can’t out-muscle them, so we have to outmanoeuvre them, be faster and more nimble. “Airlines aren’t good at taking risks for obvious reasons. We tend to be very risk-averse but we wanted to be more risk-embracing... Being fast and nimble with a higher appetite for risk – everything we do in the business comes backs to that philosophy.” The four key principles that Air New Zealand operates its business on, says Fyfe, are: 1. Treat everybody like a friend. It’s a simple concept, he says. A staffer saw a passenger on the day’s last flight out of Sydney standing outside Auckland airport and asked why he was still there. “My bags are missing and my car keys are in it,” he told her. The flight attendant invited him to stay in their spare room and said her husband would bring him back in the morning. Says Fyfe: “I’ve told people that story and they’ve said to me, that’s what Kiwis will do. It’s about going above and beyond.” 2. Be yourself. This philosophy is about being authentic and genuine and not delivering platitudes, in contrast to some airlines where every interaction is scripted. On domestic flights, staff are encouraged to learn Maori culture, but it’s not compulsory. “If you feel comfortable, you can do it.” 3. Can do. The attitude is “Make stuff happen.” 4. Pride. Make Kiwis proud to fly with the airline.

“Those four things define what I do, what we do as a company. Be yourself, make yourself approachable and accessible.” He sets the tone by sending an email to all staff every week, something that his predecessor Ralph Norris instigated. “Once my wife Donna had gone on a school camp. In the newsletter, I described my week of looking after my daughter. She convinced me her mother straightened her hair every day with GHDs. It took 45 minutes before work. When she got back, Donna said, no, it was more like once a month! It’s great being prepared to open up and let people see who you are.” His final piece of advice was: “If you act fast, you will make mistakes.” Getting things wrong and making mistakes is a very human thing. Most corporations are so risk-averse, they lose their humanity, he says. “If you look impersonal, critics are more comfortable kicking you around when you make a mistake.” Fyfe says he was on holiday when the volcano ash crisis hit, but the airline’s response was optimal. “That’s the success of a leader – when your principles are so deeply ingrained that [even when] you’re not there it goes like clockwork.” M

JUNE 2010 Management www.management.co.nz 7


OH-OH – OUR SLIP IS SHOWING New Zealand has slipped five places to 20 out of 58 economies measured on the world competitiveness scoreboard, according to the IMD World Competitiveness Yearbook released last month. The slip has worsened the transTasman gap, with Australia improving two places to now rank as the world’s fifth-most-competitive economy. For the first time in decades, the United States of America has been toppled from its usual slot as the world’s most competitive economy. Singapore and Hong Kong are now one and two respectively, according to Professor Stephane Garelli, Director of the IMD’s World Competitiveness Centre. “However, they are so closely ranked that it would be better to define them as the leading trio,” he added. New Zealand’s economic performance, business efficiency and infrastructure performance all slipped slightly, but sufficiently overall to negatively impact the economy’s total performance. Only its government efficiency rating improved – from seventh to fifth place. Too many other countries improved their relative performance and consequently pushed New Zealand down the list. Taiwan’s competitive progress is particularly spectacular. It climbed from a mid-field position of 23rd to eighth. Malaysia moved from 18th to 10th and Israel from 24th to 17th. Singapore and Hong Kong have shown “great resilience” through the financial and economic crisis, says Garelli. “Despite suffering high levels of high volatility in their economic performance, they are now taking full advantage of strong expansion in the surrounding Asian region,” he said. The 2010 World Competitiveness rankings were strongly affected by unusual volatility in economic growth (GDP data), exchange rates (especially the dol-

8 www.management.co.nz Management JUNE 2010

lar versus the Euro), financial assets (the financial crisis), trade and investment flows (because of the recession) and employment, said Garelli. “In a reset mode, world competitiveness is not just about improving performance, but also about damage control. Competitiveness highlights the relative position of nations in the pursuit of prosperity – but in a free-fall environment, the winners may simply be the ones who are the most resilient to downward trends,” he said. The 2010 IMD World Competitiveness Yearbook ranks countries on their ability to create and sustain enterprise competitiveness. The New Zealand data, compiled in partnership with the New Zealand Institute of Management, is disappointing but perhaps not surprising, according to Institute Northern chief executive Kevin Gaunt, the NZIM’s spokesperson on the survey. IMD and NZIM identified five challenges facing New Zealand in 2010. The first – the country’s need to encourage savings, create incentives and boost productivity through taxation reform – might be addressed, at least in part, by this year’s budget, he said after the findings were released. The other four challenges included the need to: • Initiate long-term growth by improving access to capital and world markets. • Begin building a nationwide ultrafast broadband network to underpin growth. • Invest in transport development

programmes to lower costs and remove blockages. • Address education gaps and skills shortages in a limited population environment. IMD this year ranked 58 economies on more than 300 criteria grouped into four: the competitiveness factors of economic performance, government efficiency, business efficiency and infrastructure. New Zealand enhanced its position on government efficiency, from seventh to fifth place. However, it dropped one place on infrastructure (from 21 to 22), dropped from 30th to 31st on economic performance and slipped from 21st to 22nd on business efficiency. “It is bad enough to slip five places in the global ranking,” said Gaunt. “But to widen the gap with Australia by seven settings isn’t doing much to help the Government achieve its stated aim of parity across the Tasman.” “The big issues for us are still our overall mediocre economic performance, our inability to attract investment funds, our corporate tax rates, our unemployment legislation, the brain drain, our shortage of communications technology investment and the high costs of some technology services, such as mobile, which is also an ongoing concern for New Zealand. “Our senior managers still lack the kind of international experience they need to compete globally and we need to export more. As we have also said before, much of the solution to New Zealand’s enhanced global competitiveness rests with positive attitudes toward better and more sustained management education and training, starting at secondary school level and continuing through trade training. And the relationship between enhanced productivity and economic performance is linked directly to greater management capability. We now have the government-sponsored Management Matters research report to verify that,” says Gaunt. M


PHOTO: TVNZ

BEST DRESSED Slim-fitting suits are the new season’s essential for every successful businessman’s wardrobe, says stylist Michiko Hylands. Although men often choose looser suits for comfort, that’s a mistake, says Hylands, who is the senior stylist for Television New Zealand. Loose suits can make you look bigger and slim fits are sharper and very current right now. “It’s really important to keep a very tailored, fitting look for men’s suits,” she says. “Slim-fitting pants are more flattering for a guy.” She says many of the smart suits worn by business and news presenters are tailored for them by Auckland stores Crane Brothers or Working Style. For businesswomen, the message is not to be too revealing, she says. “The key words are sophisticated, neat and polished.” Skirts should be fitted, and not slit too far up the back. But it’s okay to wear a pretty blouse with business-like skirts or pants. Murray Crane of Crane Brothers says Kiwi businessmen are getting the message about tailored suits, especially those who travel abroad. All their suits are altered to fit each customer’s arm length and buttons are sewn on when they are fitted. M

TV presenters Greg Boyed and Renee Wright in appropriate business looks, styled by Michiko Hylands.

FULL METTLE JACKET A Zegna jacket became an argument for sustainability in the hands of Auckland mayor and super city mayoral candidate John Banks at a business leaders’ breakfast hosted by Deloitte. The jacket, made of recycled material, plus a recycled blanket and his 1930s-era Horace Massey house all pointed to the mayor’s passion for reusing materials, he told the group.

Hylands’ weekly fashion blog can be found on www.tvnz.co.nz.

“I am as guilty as any of us of destroying things, but when the Government tells me they could mine conservation areas, I push back.” He answered questions from the group, saying he had done a 12-month listening tour around the region to prepare himself for his bid to lead the Auckland super city. “Now I clearly understand Auckland.” He said his campaign is based on optimism, jobs, prosperity and inclusiveness. M

Manage your Taxi Spend with Innovation and Technology

tel: 09 306 1790 email: enquiries@taxicharge.co.nz

JUNE 2010 Management www.management.co.nz 9


GREAT BOSSES More than three-quarters of employees like the company they work for – and it’s not just pay that makes them satisfied, a new survey of New Zealand finance and accounting companies says. Topping the list of reasons was the availability of training and development opportunities, followed by good pay, then the existence of leaders and mentors at a company. More than half the New Zealand respondents to the Robert Half workplace survey said they were not seeking a new job – the highest level in the Asia Pacific region. Of those, 49 percent said the top reason for not seeking a new job is that their company has been focused on their career development and has looked after them. Megan Alexander of Robert Half said they found that Generation Y was particularly interested in career development. “Salary is important, but the rates you offer don’t have to match the top rate of the market. It’s about managing the expectations of your employees. “Good bosses communicate clearly with their staff what’s expected of them, via key performance indicators or an incentive system, and give their people clear goals to shoot for.” The survey was carried out in February and March this year. M

executivepulse SUPPORT FOR SUPER TAX ON MINING PROFITS An overwhelming majority of senior business decision makers are in favour of a 40% super tax on mining companies’ profits.

52% of business decision makers back the idea of matching Australia’s proposed mining profits super tax, 6% more than New Zealanders as a whole.

Should New Zealand have a 40% super tax on mining company profits in addition to royalties? Senior business decision makers

All Yes

46%

Yes

52%

No

21%

No

27%

Don’t know

33%

Don’t know

21%

Source: ShapeNZ national online survey May 13-14, 2010. Weighted sample of 1256 including 358 business managers, proprietors, self employed and professionals. Maximum margins for error +/- 2.8% and +/- 5.2% respectively. 10 www.management.co.nz Management JUNE 2010

SMELL THE ROSES Maybe having flowers around your workplace seems like an unnecessary expense. Think again. Having flowers in your office can boost your team’s problemsolving skills, ideas generation and creative performance, a 10-month study of flowers and behaviour showed. The study, conducted at Texas A & M University, showed that both men and women working in environments with flowers and plants showed more innovative thinking than those without decorative objects. Men who took part generated 15 percent more ideas when working in an environment with flowers, than men in offices without plants or flowers. And women devised more creative and flexible solutions in workplaces with flowers, the survey found. Giving flowers worked too: participants also said they felt less anxious, depressed and agitated after receiving flowers, and enjoyed life more. M


NO, YOU’RE NOT FIRED! Now anyone can live like a member of the New Zealand television show The Apprentice – without the stress. Heritage Hotels is offering a highflying special ‘Live like an Apprentice’ package, staying in luxury in one of the same penthouse floor director suites where the popular television show played out. Susan Gibson of Heritage Hotels says: “It includes all the essentials for any up-and-coming business mogul.” It includes: • One night in a three-bedroom 23rdfloor suite offering great city views; • Return limousine transfers to the hotel from Auckland airport (or your Auckland home if it’s within a reasonable distance); • Chilled bubbles and canapés on arrival;

There’s no sign of Donald Trump anywhere at the CityLife Apprentice suite.

• A 20-minute helicopter flight for two over Auckland city; • One-hour in-room massage treatments for two; • Luxury hotel bathrobes to keep; • Room service breakfast; • Late check-out the next day. What about all the tension of the TV show? She laughs. “Not included are

the contestants battling it out with you in the race to be the first New Zealand apprentice. And you have the entire 115 square metre suite to yourself.” The special package is $1995 including GST per night and it is subject to availability. • For bookings, call 0800 368 888 or visit www.heritagehotels.co.nz M

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JUNE 2010 Management www.management.co.nz 11


AS I SEE IT

Blair McKolskey is director of Auckland’s Finewood Furniture, manufacturers and exporters of hand-crafted furniture How would you describe the New Zealand identity? We are uniquely innovative, changing and resilient. With repeated top global patent rankings in certain sectors, New Zealand has consistently shown an ability to “punch above our weight” in innovation. What makes us unique is that the innovative results endure despite a lack of big research and development budgets such as those abroad. Like the All Blacks, New Zealand business does not have the big dollars to throw around the global playing field, yet we continue to be world class in innovation. That unique and consistent success can only come from an internal, deeply rooted belief which is enhanced by our trademark determination, the same determination that is characteristic of New Zealand’s rugby heroes. What will be the country’s next major challenge? I believe our next hurdle will be embracing changes to support New Zealand businesses with the right ideas to compete on the world stage. We are coming to realise that the industrialisation of New Zealand and being a production-based economy is unlikely to be a winning strategy. I believe the opportunities are around product and service innovations and the associated higher value-added jobs. We need to adapt our thinking and our way of life to embrace these opportunities. More importantly, we have to enable creative and entrepreneurial souls to bring their ideas to market. What do we need to do to prepare for this? I believe we need to take greater responsibility for our own actions (or inactions), and dramatically reduce paternalistic policies that inhibit strong and effective capital markets which could drive innovation and growth. However it is to be accomplished, New Zealand needs to progressively release free-market choice through a measured process of less-prescriptive and more lighthanded descriptive regulation. The next steps are going to be difficult. Sacrifices will be made, but to build on an earlier analogy, they need to be met with the same resolve you see in the eyes of those who have the privilege of performing the haka before a big game.


managers abroad

OUR MAN AT DELL Prior to joining Dell as vice-president of marketing, Andy Lark was chief marketing officer, LogLogic – a hot Silicon Valley start-up; and head of marketing for Sun Microsystems. As founder of Group Lark, he pioneered many of the first business implementations of social media in the United States. His work with New Zealand companies – including No. 8 Ventures – earned him the inaugural KEA World Class NZ Award. Based in Austin, Texas, he is married with a daughter, Sophia, and son, Zach. When not growing businesses, he blogs prolifically at thedailylark.com. He has no interest in golf.

ANDY LARK VICE-PRESIDENT OF MARKETING, DELL US Could you provide a brief sketch of your current role?

I lead the team that drives marketing of Dell solutions to enterprises in more than 140 countries – and run the world’s largest e-commerce site which makes buying and owning Dell simple for businesses. How does it fit into your career path?

This role combines my background in communications and marketing with driving a business online and a big dose of entrepreneurship – it’s been a natural evolution to this point and a perfect stepping stone to a broader business role. What are the main challenges of your job?

My greatest challenges are that online, marketing, and the industry are all in their greatest period of transformation. Keeping pace with that globally, and particularly the massive opportunity

afforded by emerging economies, is an exciting challenge. What are the three learnings you will take from it?

Everything starts with team – ensuring they can succeed in job number one. BRIC (Brazil, Russia, India, China) can’t be an adjunct to your strategy, they have to be the strategy. Social media changes everything. How do you now view New Zealand as a country and an economic/business environment?

Andy Lark is a member of KEA, New Zealand’s global talent community. www.keanewzealand.com

I see New Zealand as highly entrepreneurial, but slow-paced, when compared to emerging economies. But it’s a great place to do business – very innovative. I like New Zealand’s brilliant emphasis on design. What sort of ongoing contribution/ involvement do you, or would you, like to make to New Zealand’s economic future?

I see myself playing an active role in nurturing – as a coach, investor, and director – a generation of highly successful New Zealand enterprises online. And, being a positive voice for New Zealand on the global stage, building the brand. And, I will continue to ensure the success of Allpress Coffee by drinking lots of it! M

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JUNE 2010 Management www.management.co.nz 13


on the move Gavin Walker

Jonathan Ling

Dave Larsen

GAVIN WALKER, JONATHAN LING

Walker and Ling have been appointed independent non-executive directors of ASB Bank. Walker currently serves on the boards of BT Investment Management and Lion Nathan National Foods and has previously been the chief executive of Bankers Trust Investment Bank in Sydney, and of Bankers Trust New Zealand. Ling has been Fletcher Building’s CEO and managing director since 2006. Current deputy chairman Jim Syme and independent director Rick Boven will both step down from the board this August. GREG PEARSE

In recognition of the size and complexity of its business, South Canterbury Finance has appointed Pearse, a specialist treasury manager, as group treasurer. He will initially be on a fixed term contract for three months. PETER BULL

Formerly New Zealand Trade and Enterprise’s regional director – Americas in Los Angeles, Bull has returned to Wellington as acting group general manager – corporate services. He will be responsible for NZTE’s finance, information technology, property and legal services. JONATHAN HILL

Greenstone Energy, the New Zealandowned company which now owns and operates

Phil Hughes

Justin Mowday

Bryan Thomson

the retail and distribution assets of Shell New Zealand, has appointed Hill as its corporate communications manager. DAVE LARSEN

Acknowledged last year as NZIM/Eagle Technology’s Young Executive of the Year, Larsen has been promoted to general manager of Rayglass Boats. He was previously the company’s sales and marketing manager. GRAEME COLLIER

Guardian Trust has appointed Collier as head of product management and marketing. He will also oversee product management and marketing for the investment products of sister brands within the Suncorp Life NZ group of Tyndall Investment Management NZ and Asteron. PHIL HUGHES

Ryan Recruitment has appointed Hughes as human resources manager. He has held high level leadership and HR management roles in a variety of organisations, including the military. JUSTIN MOWDAY

DDB New Zealand has appointed Mowday as its managing director, a newly created role at the agency. Mowday will be responsible for leading the advertising agency’s business performance and key client relationships.

Amanda Lawson

BRYAN TH THOMSON, JO CLIFFORD

Thompson, who has been Harcourts New Zealand CEO for the past eight years, has been appointed to the new role of head of real estate operations for Harcourts’ Australasian businesses with responsibility for the operation and growth in New Zealand, Australia and Fiji. Clifford, previously general manager of Harcouts NZ, has been promoted to chief operations officer, a new position created in a review following Thomson’s internal promotion. KAREN TAYLOR, JAMES GROVER

Trans-tasman law fi rm Duncan Cotterill has appointed Taylor, a specialist in corporate lending, restructurings and debt capital markets, as an associate in its Christchurch office. Grover joins as an associate in the Nelson office where he will be part of the corporate and property team. CLIFF MCCORD

Specialist injury management company Wellnz has promoted McCord to Wellington manager. He takes over from Sarah Findlay, who will remain as a shareholder. AMANDA LAWSON

Insight Creative has appointed Lawson as account director in the design company’s Auckland office.

Plan, Do, Sustain – The Essence of Change The use of project-based management approaches to advance and succeed in change is seen as vital nowadays. At Project Plus we relate change and project initiatives to the achievement of organisational benefits. Get in touch for more.

www.projectplusgroup.co.nz

14 www.management.co.nz Management JUNE 2010

Jo Clifford


executivedevelopment

23-24 PROJECT MANAGEMENT. Auckland. University of Auckland Short Courses. www.shortcourses.ac.nz

For more detailed etai diary iary listings, istings, visit Management‘s anagement s website we site www.management.co.nz

NZIM courses SEE PAGE 59

www.nzimnorthern.co.nz, www.nzimcentral. co.nz, www.managementsouth.co.nz

June 9 COMMUNICATING WITH A DIGITAL TOOLBOX. Auckland. University of Auckland Short Courses. www.shortcourses.ac.nz 9 GETTING TO GRIPS WITH VIDEO. Auckland. PRINZ. www.prinz.org.nz 9-10 SYSTEMS THINKING. AUCKLAND. University of Auckland Short Courses. www.shortcourses.ac.nz 10-11 ECONOMICS & COST BENEFIT ANALYSIS FOR POLICY MAKERS. Wellington. Conferenz. www.conferenz.co.nz 11 DIGITAL COMMUNICATIONS. Auckland. PRINZ. www.prinz.org.nz 13-18 COMPANY DIRECTORS’ COURSE. Wellington. Institute of Directors. www.iod.org.nz 14-15 FINANCE FOR NON-FINANCIAL MANAGERS. Auckland. University of Auckland Short Courses. www.shortcourses.ac.nz

24 MANAGEMENT COMMUNICATION 3 – DELEGATION. Auckland. University of Auckland Short Courses. www.shortcourses.ac.nz

16 GOVERNANCE ESSENTIALS. Auckland. Institute of Directors. www.iod.org.nz 16 INTERNAL COMMUNICATIONS. Auckland. PRINZ. www.prinz.org.nz

24 EFFECTIVE COMMUNICATIONS FOR PUBLIC PARTICIPATION. Auckland. PRINZ. www.prinz.org.nz

16-17 INFLUENCING & PERSUADING SKILLS. Auckland. University of Auckland Short Courses. www.shortcourses.ac.nz

24-25 LEADING STRATEGICALLY. Auckland. University of Auckland Short Courses. www.shortcourses.ac.nz

16-17 MANAGEMENT FUNDAMENTALS. Auckland. University of Auckland Short Courses. www.shortcourses.ac.nz

28-29 BUSINESS WRITING SKILLS. Auckland. University of Auckland Short Courses. www.shortcourses.ac.nz

16-18 FRANKLINCOVEY: THE 7 HABITS OF HIGHLY EFFECTIVE PEOPLE. Wellington. www.davidforman.co.nz

28-30 FRANKLINCOVEY: LEADERSHIP. Queenstown. David Forman. www.davidforman.co.nz

21-22 MARKETING MANAGEMENT. Auckland. University of Auckland Short Courses. www.shortcourses.ac.nz

28-July 2 PRINCE2 PROJECT MANAGEMENT TRAINING. Wellington. method360. www.method360.com.au

21-22 TIME MANAGEMENT. Auckland. University of Auckland Short Courses. www.shortcourses.ac.nz

30 NOT-FOR-PROFIT GOVERNANCE ESSENTIALS. Nelson. Institute of Directors. www.iod.org.nz

21-22 TAMING THE CHAOS: THE ESSENTIALS OF TIME MANAGEMENT. Auckland. Conferenz. www.conferenz.co.nz

30-July 1 PROCUREMENT MANAGEMENT. Auckland. University of Auckland Short Courses. www.shortcourses.ac.nz

21-23 PRESENTATION SKILLS. Wellington. David Forman. www.davidforman.co.nz

14-15 BUSINESS PROCESS IMPROVEMENT. Auckland. University of Auckland Short Courses. www.shortcourses.ac.nz

22 (start) CERTIFICATE IN PROJECT COORDINATION. Auckland. Project Plus. www.projectplusgroup.com

14-15 STRATEGICALLY INFLUENCING ACROSS YOUR ORGANISATION FOR WOMEN IN BUSINESS. Auckland. Conferenz. www.conferenz.co.nz

22-23 LEADERSHIP BEHAVIOURS THAT MAKE A DIFFERENCE. Auckland. University of Auckland Short Courses. www.shortcourses.ac.nz

15 FRANKLINCOVEY: FOCUS. Wellington. David Forman. www.davidforman.co.nz

23 REPUTATION MANAGEMENT. Auckland. PRINZ. www.prinz.org.nz

CAse study 3

30-July 1 BUSINESS SKILLS FOR NEW MANAGERS. Auckland. University of Auckland Short Courses. www.shortcourses.ac.nz

July 1-2 MULTIPLE PRIORITIES AND TIME MANAGEMENT. Auckland. Conferenz. www.conferenz.co.nz

TAKE CONTROL OF YOUR leadership IN 2010 Learn from REAL leadership experts.

To discover how you can take control of your leadership in 2010 with a Short Course and recieve $300 To view video case studies of off the price, go to: leadership styles to avoid, join our online meeting room. Because it takes www.takecontrol.ac.nz/leadership more than claiming to be the next Napoleon to motivate and inspire.

JUNE 2010 Management www.management.co.nz 15


JUST GOOD BUSINESS CASE STUDY

CARE AS

YOU EARN YOU ALREADY PAY TAX WHILE YOU EARN

So why not donate money to your favourite charity while you earn? New tax changes mean it’s easy for your staff to become payroll givers.

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ew Zealanders are naturally generous people. Each year an estimated 1.2 million of us volunteer our time and together we give more than $1 billion a year to charities. Now it’s even easier for businesses and employees to give, thanks to recent changes to our tax rules. The new legislation has introduced ‘payroll giving’, a concept that means employees can give as they earn and receive an immediate tax credit of a third of each donation. Now the cap on the donations tax benefit has been removed, meaning that individuals can claim tax benefits on donations up to the level of their taxable income and companies can donate up to the level of their net income and still receive a tax benefit.

The Royal New Zealand Foundation for the Blind says it welcomes the launch of payroll giving. Packs are available from www.rnzfb.org.nz.

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The new rules also clarify the tax treatment of reimbursement payments and honoraria to volunteers. Reimbursements are not taxed but honoraria is considered taxable income. International research indicates corporate social responsibility – giving back to the community – is not only the right thing to do, but it is also clever business. Communities include customers and prospective customers as well as employees and prospective employees. Payroll giving was launched in New Zealand in January and is voluntary for both employers and employees. Employees in participating companies simply nominate a charity or organisation to donate to from their pay, as long as it has Inland Revenue-approved status. The employee receives an immediate 33.33 percent tax credit via PAYE. That means if someone gives $15, it effectively only costs them $10, but the charitable organisation receives the full $15. Research in countries with already established schemes shows that payroll giving offers significant benefits to employers including: • Increased employee morale and retention. • An improved social responsibility profile. • Stronger partnerships with the community. In the United States, 35 percent of workers donate through workplace schemes, and social responsibility mechanisms are seen as an active recruitment

tool. Recent research from Washington’s Center for Work-Life Policy showed that high-potential employees are seriously motivated by a desire to give back to the world and increasingly seek out employers that allow them to participate on company time. Australians currently donate around A$20 million annually through workplace giving. The additional benefits of such schemes have become clear during recent disasters, for example, PricewaterhouseCooper staff in Australia raised A$650,000 in 10 days through payroll giving for the Victoria bushfires appeal. The cheapness and efficiency of payroll giving is also seen as an advantage in the light of public concern about the amount charities have to spend to raise money. Charitable organisations internationally report that payroll giving dramatically reduces fundraising and administration costs. Revenue Minister Peter Dunne said New Zealand’s payroll giving scheme was “about social conscience at the levels of both employees and employers. “Kiwis are generous by nature, and Kiwi employers, both in the private and state sectors, now have a way to play their part in supporting their workers’ generosity. “It really is a win-win situation – as other commentators have called it,” he said. For more information on payroll giving and the other giving tax changes, visit www.ird.govt.nz, www.ocvs.govt.nz or www.payrollgivinginfo.org.nz. M


SUSTAINABILITY Y JUST T GOO GOOD G OOD OO D BUSINESS

Do you have an orangutan-killer in the office? by Peter Neilson

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ould you entrust your business’ precious reputation to your printer? What if they’re using paper from suppliers who are destroying native forests, wildlife habitats, killing orangutans and causing thousands of people to suffer? So, right now, can you say exactly what sort of paper you are using? If the use of palm oil can radically and almost overnight upset chocolate-buyers, what happens if your customers find a chink in your supply chain? Thousands of businesses are running this risk daily. For example, do you know where your toilet paper’s coming from? Illegally or unsustainably logged forests offshore, or sustainable plantation forests? Why are some toilet tissues making environmentally friendly claims on their labels – without the evidence legally required to back those up? Do you know where that so-called “safety” glass came from for your home or apartment balcony? Is it really safe? Is the compliance certificate it carries a fake? The Commerce Commission can investigate “green wash” complaints. However we have yet to see many investigations. When will you really care? Before or after the moment the glass shatters and injures or kills? And the major investment you’ve made in building your reputation, brand, staff, building and customer base is shattered with it? Will you care when the market finds out about you – and shifts to a more authentic product? Because extensive research in New Zealand shows a third of the market will move when they find out about you: either to or from you. Most New Zealanders want businesses to do the right thing, by them, their environment and society. More than seven out of 10 want you to strike the right balance

between making returns for shareholders (that’s essential) – and looking after our quality of life. Yet most also cannot name a standout brand which does this. They will most trust their personal experience with a brand, and information they receive about it from the brand (though not through its advertising). So the key challenge – and major benefits – will come to your business when it secures its supply chain, can prove it is doing no harm (and in fact may be doing extra good) – and people find out about it. Two years ago it was impossible for most printers and graphic designers to

It is responsible for more deforestation in Sumatra than any other company. Since its operations began in the 1990s it is estimated to have cleared one million hectares of natural forests in Indonesia’s Riau and Jambi Province. APP has repeatedly failed to apply high conservation values within its logging areas and WWF has ended its yearslong efforts to help the firm. Other companies that have ended their relationships with APP in Indonesia include Woolworths, Fuji Xerox, Corporate Express and Office Depot. Blue Star Group, the major printers, won’t supply anything in New Zealand other than certified stock.

“RESEARCH IN NEW ZEALAND SHOWS A THIRD OF THE MARKET WILL MOVE WHEN THEY FIND OUT ABOUT YOU: EITHER TO OR FROM YOU.” easily research and choose sustainably produced office papers, with authentic certification. The New Zealand Business Council for Sustainable Development commissioned the first “Which Paper?” guide – and mailed it to 4000 printers and graphic designers nationwide. They were extremely grateful. One of the country’s major office paper suppliers reported its sustainable paper inventories rose from 10 percent to 41 percent. Now they’re at more than 70 percent. And Spicers Paper has decided not to buy from Indonesian paper maker APP. According to the World Wide Fund for Nature, APP is one of the world’s largest vertically integrated pulp and paper companies. It operates mills in China as well as Indonesia.

So do you have a native forest-killing, poor quality glass-provider, or green wash toilet paper-labelling supplier threatening your business? It might be time to ask. Before your customers do… Oh, and where did the paper for this article come from? Editor’s Note: NZ Management magazine is printed on Spicers’ 9 Lives paper, made of 55 percent recycled fibre, with an environmental certification of 5, the maximum performance. Plus, for every tonne of paper sold, Spicers Paper donates $20 to WWFNew Zealand projects that help protect our environment. M Peter Neilson is chief executive of the New Zealand Business Council for Sustainable Development. www.nzbcsd.org.nz

JUNE 2010 Management www.management.co.nz 17


focus ROB FYFE LUNCH: The finalists finalists of last year’s NZIM/Eagle Technology Young Executive of the Year got together with 2009 Top 200 Executive of the Year Rob Fyfe for an informal chat over lunch at Jervois Steak House on May 5, hosted by NZ Management magazine. The finalists were Dave Larsen (2009 winner who has just been promoted to general manager of Rayglass), Dan Coward and Tracey Berry. 1 Jervois Steakhouse mains 2 Toni Myers (left) and Rob Fyfe 3 Sponsors and guests 4 From left Karen Torjussen, Tracey Berry, Corallie Eagle 5 From left Rob Fyfe, Dave Larsen, Brenda Ward and Tania Vela 6 Dan Coward (left) and Dave Larsen.

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TOP 200: The 2010 Deloitte/Management magazine Top 200 campaign was launched at Euro, Auckland on May 4. 7 Katherine Percy (left) and Michael Crampin 8 From left Karen Torjussen, Brenda Ward, Jayne Richardson, Cassandra Worrall 9 Toni Myers (left) and Michael Crampin 10 Val Graham, QBE Insurance 11 Speeches at Euro 12 Fabulous Euro finger food.

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VERO AWARDS: The Vero Excellence in Business Support Awards were held at the Auckland Town Hall on May 20. 1 Timua Brennan and the Raukura Maori Group. 2 The setting for the Vero Awards black tie dinner. 3 At NZ Management magazine’s table: Rear, from left, Clara Iqbal, Tania Vela, Brenda Ward and Sonya Crosby, front, Fran Marshall, Robert Johnson, Toni Myers, Megan Barclay. 4 From left, Sir Ron Carter, Lady Beverley Reeves, Sir Paul Reeves. 5 From left, Ian Walker, Robyn Speer and Roger Bell, all of Vero. 6 From left, Hilary and Mark Robotham, and Craig Gregory. 7 From left, Campbell Wright, Andrew Somerville. 8 Co-MC Carol Hirschfeld. 9 George Frazis, Mike Hearn, Sarah Trotman, managing director of award organizer Bizzone. 10 Sarah Trotman, Craig Lamberton, Nigel Varcoe. 11 Michelle Lewis, John Mayson, Steven Caunce. 12 Designworks, Supreme Award winners, with the Prime Minister: Chris Meade, Michael Crampin, Sven Baker group CEO of Designworks, Roger Bell chief executive of Vero, Noel Blackwell, PM John Key, Nicki Chapman and Shayne Priddle.

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JUNE 2010 Management www.management.co.nz 19


HEALTHY WORKSTYLES

The cost of getting sick by Peter Tynan

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or any business, people are your primary asset. Look after your employees and they’ll look after the business. But many managers still don’t realise the true cost of sick days. Here are some alarming facts every manager should know about workplace health: • The cost of illness to New Zealand employers each year is likely to be more than $1500 per employee or more than $2 billion across the whole workforce (TNS Conversa, Nov 2008). • Employers are probably spending the equivalent of about nine percent of their annual pay-bill on absence, say several studies in the United Kingdom. • An average $100 is lost for every employee absent for a day. For the whole New Zealand economy, the savings from workplace health insurance in terms of loss of output avoided are $117 million a year, says the NZ Institute of Economic Research. It sounds like common sense for

every company to invest in a workplace wellness programme, but given the budget cuts many businesses are still facing, it can be tough convincing a financial controller that this is a priority business investment. Senior managers will need to see a strong business case to support a proposed programme, offering the facts and figures they need to make an informed choice on whether a project should go ahead. Every business is unique, but here are some suggestions to help set up a business case.

You need to define the core problem or business challenge and how this problem impacts the business. It might be high levels of sickness absence, low staff morale or high staff turnover. You should include factual evidence beyond your business. Southern Cross’ healthy business website www.healthybusiness.co.nz provides absence and employee turnover calculators as well as a business case tool which will help provide research and facts based on the information and areas you provide. CURRENT SITUATION

THE EXECUTIVE SUMMARY

This is a quick, easily-understood summary of the opportunity. It should include a short description of the proposed health and wellness initiative and a summary of the resources needed to make it happen. You should be clear about how the proposal fits with the company’s key business strategies.

THE RIGHT MEDICINE At pharmaceutical company GlaxoSmithKline in the United Kingdom health enhancement and support initiatives are part of a company-wide personal and team resiliency programme to help employees remain physically energised, mentally focused, emotionally connected and spiritually aligned to their mission. Programmes in individual and team resilience resulted in a 60 percent global reduction in work-related mental ill health and 29 percent reduction in working days lost. Staff surveys revealed an increase in staff satisfaction of 21 percent. Half the employees reported themselves as ‘committed’ or ‘highly committed’ and 75 percent ‘never’ or ‘only occasionally’ considered leaving. These attitudinal changes were accompanied by performance and productivity increases of seven percent to 13 percent. Source: Business in the Community, Wealth from Health, October 2007.

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BACKGROUND

Outline any initiatives that have already been put in place and the results – for example, annual staff influenza vaccinations. Include staff or management feedback to help support your business case. BEST PRACTICE

You should try to include examples of best practice that support your case. There are a growing number of organisations in New Zealand that are investing in comprehensive wellness programmes. Among them are BNZ, Telecom and New Zealand Customs. Visit healthybusiness.co.nz to read more about these initiatives. RECOMMENDATION

Describe the health and wellness initiative you want to put in place, and include comments from people who have the information and skills to strengthen your business case. INVESTMENT AND EXPECTED RETURN

Show how much the health and wellness initiative will cost to put in place and maintain. Using the best practice examples as a guide, you should clearly detail the savings that could be achieved. Consider the financial impacts of


reduced turnover, reduced sickness absence and increased productivity and remember that optimistic or unrealistic budgets and implementation schedules can destroy the credibility of a business case. Some areas you may want to include in your business case: Absence: Include facts about sick days, such as the ones above. What are the financial impacts? Attraction and retention: Ensure your business maximises the value of money spent on recruitment, training, and development by keeping a firm lid on staff turnover, and making your business attractive to the best candidates. • The cost of hiring and training a new employee can vary from 30 percent to 200 percent of annual compensation, says the American Management Association. • The cost of providing a fully subsidised health plan for your company can be as little as one percent of your annual payroll (Source: Southern Cross, for a 41-year-old earning $45,000 on the Wellbeing One plan). • Employee benefits are one of the main reasons why employees stay with an organisation, says the Randstad 2009 Employment Trends Report. • The 2008 Hudson Job Seeker Study into the key motivators of today’s job seeker showed they rate top employers as those who show they care about their people. Culture and productivity: Health and wellness programmes can help you to keep a healthier, more productive, loyal

WHEN QUITTING FEELS GOOD Sarah lived in denial for nine years. A keen runner with an active interest in sports, exercise, and healthy eating, there was just one question that bothered her. If she was only a ‘social’ smoker why couldn’t she give it up? When Sarah’s workplace announced they would be running a subsidised stop-smoking programme, Sarah saw this as her opportunity to seek help to quit and get rid of a habit that was at odds with her otherwise healthy philosophy of life. She joined 12 colleagues in the smoking cessation programme. Going through the programme with people she knew helped create a supportive environment. Now training for the Auckland Harbour Crossing swim, Sarah also has her sights set on competing in triathlons next summer. For Sarah, an employer-subsidised programme not only helped her give up smoking, but opened up a whole lot of new sporting opportunities and challenges.

workforce. There is a measurable link between a person’s health and lifestyle and how productive they are at work. The World Economic Forum estimates the benefits from improving the general wellness of a workforce indicates a likely annual return of three-to-one or more, says the World Economic Forum. Return on investment: A healthy, engaged and productive workforce is critical to maximising business performance and driving sustainable growth. Health and safety activities have direct economic benefits. They help curb absence and enhance productivity and efficiency.

World Economic Forum studies show that companies with the most effective health and productivity programmes experience 11 percent higher revenue per employee and 28 percent higher shareholder returns. Looking at the high cost of poor health to employers and success of health and wellness interventions, the economic case for investing in wellness programmes is a given. It isn’t a case of can you afford to. Can you afford not to? M Peter Tynan is chief executive Health Insurance, Southern Cross Medical Care Society.

The best way to keep staff happy since wages. The activa card is a simple, fun way to attract, retain, and inspire your staff. You set the annual amount, then your staff use their activa card to enhance their health and wellbeing. It’s what you’d call a healthy incentive. To find out more about the benefits of activa for your staff talk to Southern Cross on 0800 323 555 now or visit www.healthybusiness.co.nz. activa is brought to you by Activa Health Limited. The activa Account and related banking services are provided by ASB Bank Limited. Activa Health Limited receives services fees from ASB Bank Limited and Southern Cross Medical Care Society. Neither Activa Health Limited nor the Southern Cross Medical Care Society is a registered bank. A copy of ASB’s disclosure statement is available free of charge at www.asb.co.nz.

JUNE 2010 Management www.management.co.nz 21


OPINION

Bookcase by Martin Freeth, Sonya Crosby & Brenda Ward BIRD ON A WIRE THERESA GATTUNG • RANDOM HOUSE NEW ZEALAND • RRP $39.99

Former Telecom chief executive Theresa Gattung has written a book with the apparent intention of setting the record straight on the Labour government’s 2006 decision to heavily regulate the company. Telecom’s profitability and stock price never recovered. Bird on a Wire reveals the heavy personal toll on Gattung of that decision and its aftermath, and shares at length her current views on life, business and feminism. The ex-CEO wants us to know that whatever has happened to Telecom since 2006, it is not for want of her earlier efforts at addressing political expectations on broadband roll-out in New Zealand and at genuinely engaging with cabinet ministers. On its cover the book promises “the inside story from a straight-talking CEO” but it is also a memoir of Gattung’s life so far, from childhood to her current involvement in the wool industry. Her rise to Telecom CEO aged only 37, and her tenure through tumultuous times till 2007 were, in themselves, significant achievements. Gattung is certainly intelligent, energetic and well-intentioned. On the other hand, Bird on a Wire shows Gattung as a CEO very concerned with – perhaps distracted by – public reputation and media attention (especially if it became negative), and one who believed that the strength of her personality would carry the day in dealings with politicians, colleagues and others – perhaps without acknowledging institutional, historical and all other influences on her many stakeholders. The book prompts us to wonder whether her passion for the job combined with all the pressures faced by 22 www.management.co.nz Management JUNE 2010

any CEO lead Theresa into a confusion of personal and professional identities and cloud her judgement at crucial times? That said, Gattung wants us to know that she has definitely moved on. Her interest these days is in reviving New Zealand’s strong wools industry from a role as chair of Wool Partners International, a marketing joint venture. Her two chapters on the industry’s plight and prospects are the book’s best written. • Martin Freeth, Telecom’s public affairs manager in 2000-2002

the book like a tips and reference-style manual you’d dip into, rather than something you’d read voraciously from cover to cover. However, she has some good ideas to customise the tools to how you want to use them, which should really enable readers to streamline tasks, and maximise efficiency. • Sonya Crosby, general manager of Datamine

HOW TO SELL YOURSELF RAY GROSE • KOGAN PAGE • RRP $21.99

MAKE YOUR DATABASE A GOLDMINE DEBBIE MAYO-SMITH • PENGUIN • RRP $40, E-BOOK $20

I feel as though I learnt some new things about Excel through reading Debbie MayoSmith’s new book – and that was a bit of a surprise. In fact, it seemed a bit weird to be reading through an Excel tutorial rather than a guide on how to make a database work for you, given the name of the book is Make Your Database a Goldmine. Given the title, I wonder if promoting housing your database purely in Excel is the right message? Certainly this option may be fine in some situations and for some companies, but those of us in the business could tell you Excel isn’t the only option, nor is it the best option for everyone. That said, this book could be a good training tool for the uninitiated, especially small business owners who would appreciate the ‘self-help’ style tips. The screen-grabs are a good aid to help readers understand the practicalities. However, I found the read a bit clunky. Mayo-Smith zips around between case studies, then screen-grabs, without much cohesion or flow, so I found it best to treat

Every day in business you have to sell yourself – but we often forget that. In How to Sell Yourself, Ray Grose puts a pretty compelling case for thinking about your image in every interaction with people, every day. Grose says each morning when your staff walk in the door you should consider the impact of your greeting; as you write every email you should think about its tone and hidden messages; and at every office social event you need to remember that your image within the organisation and outside it rests on your discretion, friendliness and presentation. Grose covers much that has been said before – but much of it people in business forget. As we become more our own ‘brands’ as well as representing the brands we work for, there are behaviours that are proven to help us succeed and get promotions or win business and contracts. Why ignore them? • Brenda Ward, editor of NZ Management


LEADERSHIP NZ

Hands up, leaders!

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he Leadership New Zealand leadership development programme challenges leaders of the future by engaging them in conversations they would never otherwise have had, says Kirsty PillayHansen, one of this year’s participants. Leadership NZ is looking for applicants for the 2011 intake into the programme. Each year 30-odd participants from diverse backgrounds are selected to take part in the 10-month programme, aimed at developing people who want to live a life of leadership in their organisations and their community. Pillay-Hansen is sponsored by NZ Management magazine for her part in the programme. She says: “It has taken me out of my comfort zone to meet and hear from inspiring speakers from very different backgrounds to mine. I’ve been challenged to think more broadly and outside my usual world.” Pillay-Hansen says she has learned the value of acting collaboratively, and taking the next step forward. “It brings you together around the table, to work together for better outcomes for all New Zealanders.” She says she’s met an amazing group of people that she looks forward to seeing each month. Megan Barclay, executive director of Leadership New Zealand, says the leadership development programme is a chance for aspiring leaders to take personal leadership learning beyond theory and across sectors. “Leadership New Zealand has brought together hundreds of leaders from across New Zealand’s society to engage in inspired conversation and creative thinking on topical and forward-thinking issues facing our country. “Our alumni are some of New Zealand’s most significant leaders in every walk of life.” To apply, candidates should have leadership capability and potential, ide-

ally have 10 to 15 years experience in their fields of expertise, and have their organisation’s support. They should be prepared to commit to the community through Leadership New Zealand’s SkillsBank Programme and be free to commit to two to three days a month over the 10-month course. Applications close on September 15. For further information, see www.leadershipnz.co.nz. Leadership NZ’s most recent Cafe Series event for alumni and guests was on ‘Communities by Design – The Shape of Our Future’. Speakers discussed the questions ‘What is a community?’, and ‘How can we make communities better?’ at the interactive business event. Speakers included Alison Sykora of the Vodafone Foundation, who spoke on corporate responsibility, and social entrepreneur and Leadership New Zealand alumnus Essendon Tuitupou, who spoke on ‘Communities by design but by choice’. He explained that sacrifice is a choice each of us makes and one sacrifice for him was setting up Temple Ministries to encourage Manukau residents to take up exercise and improve their health. They now have five- and eight-week programmes catering to different levels of fitness and have introduced a leadership programme into the community. Ludo Campbell-Reid, urban design manager at the Auckland City Council, said he believed the authorities must do their part in designing communities, but we are also responsible for our own part in that. Campbell-Reid said he felt that our direction and vision needed to be refocused on people. “We need to remove the fences and claim back our communities.” He would like New Zealand to be seen as world-changing and pointed out that Auckland has the highest car ownership per capita in the world, which is a situa-

Mike Ikilei (left) and Alison Sykora challenged the concept of communities from two different perspectives at a Leadership NZ Cafe Series event.

tion we should be working to correct. Community commentator and Tamaki Transformation Programme board member Mike Ikilei introduced the concept of ‘strength-based thinking’ – building on the hearts of communities through transformational leadership. He says we must think strategically, while remembering grass-root applications. Through his work with the programme, Ikilei says he seeks to bring together all interests to create transformation through participation. Artist John Radford said he was disappointed that we have little appreciation for cultural heritage in New Zealand, noting there was no heritage department planned for the new Auckland Super City and that historic freight sheds would be demolished for temporary structures. The Cafe Series event concluded with a round-table discussion of the evening’s topics. Cafe Series events are held every month. To find out where the next event in your area is held, go to www. leadershipnz.co.nz. M JUNE 2010 Management www.management.co.nz 23


OPINION THOUGHT LEADER

Why isn’t education working? by Phil O’Reilly

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ducation for work – vocational and tertiary education – is vitally important to New Zealand’s economy, but it is less successful than it should be. Despite a huge investment of taxpayer dollars, the outcomes from polytechnics, universities and other tertiary education organisations have been criticised. And a large proportion of New Zealand workers have no qualifications at all. Low completion rates are one problem, with as many as 40 percent of all students in tertiary education failing to finish their course or qualification. Then there is the issue of whether many of those courses and qualifications are even relevant. The issue is raised every time Business NZ surveys its members, with many businesses saying they find it hard to get workers with the right skills. This may seem hard to believe – after all, New Zealand is well provided with universities and polytechnics. There seems to be no reason why any young person couldn’t get the right skills to get a good job. Another problem is low skills. You may also find it hard to believe, but more than one million people already in the New Zealand workforce have what’s called “low functional literacy and numeracy”. That’s a huge number of people without the basic reading, writing and simple arithmetic skills to perform effectively in the workplace. All these have big implications for our ability to achieve a highly productive economy now and in the future. Obviously we have a problem: low skills, not enough skills and not the right skills. What’s going on? First, the low completion rate, where students are not completing the course or qualification they were enrolled in, appears to be at least partly linked to a lack of incentives for quality teaching. Tertiary bodies get funding based on performance for their research function, in the form of the Performance

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Based Research Fund, but there is no equivalent funding incentive for highquality teaching. This might begin to pick up, as the Government has said it plans to introduce some performance-based funding for teaching from 2012. Funding will be linked to measures like successful course completion, qualification completion and progression to further study. After 2012, organisations that are not performing will run the risk of losing funding – this kind of signal is well overdue and is also likely to lead to healthy competition between organisations, which should lift everyone’s game. However it won’t fix the problem of students graduating with the wrong skills – without the skills needed by employers. This could be improved if tertiary organisations were more engaged with

among 20- to 40-year-olds in the New Zealand workforce – 250,000 or more have less than a level-one NCEA-equivalent qualification. These people will be in the workforce for 20 years or more, so we need training for them now to get better skills for the coming years. Some good work is being done with the Workplace Literacy Fund, which subsidises literacy, language and numeracy training, in partnership with a number of major employers such as Spotless and Downer EDI. However, funding for the future of this programme is uncertain. We need more certainty so employers can get involved in raising skill levels in their workplaces. WHAT DO EMPLOYERS WANT?

As well as technical skills specific to the workplace, employers want strong literacy, language and numeracy skills, and skills

“ONE MILLION OR MORE EMPLOYEES WITH LOW FUNCTIONAL SKILLS WILL MAKE IT DIFFICULT FOR NEW ZEALAND TO ACHIEVE HIGH PRODUCTIVITY.” employers, so that information on the skills workers need can be used to design and deliver courses, and if funding was better aligned to skill needs. Some tertiary organisations have good links with business and are offering courses that are relevant to enterprise, but some have some way to go. Business NZ contributes to the course design of a number of tertiary institutions and would be happy to work with more. The problem of low skills needs special attention. One million or more employees with low functional skills will make it difficult for New Zealand to achieve high productivity, a key factor in today’s competitive global economy. More evidence of this problem abounds

connected with problem solving, critical thinking, teamwork and the ability to keep on learning. Getting these skills and raising successful course and qualification rates are not ends in themselves, of course, but they will make New Zealand more competitive in the world and boost its economic development. A skilled workforce is a precondition for productivity, employment and economic growth. Getting this crucial sector right will make a big difference for the wellbeing of us all. M Phil O’Reilly is chief executive of Business NZ, www.businessnz.org.nz


ADVERTORIAL

Workplace literacy training: a ‘no brainer’ Fletcher Construction Company has found that workplace literacy training has had some powerful benefits – some of them unexpected, Graham Darlow says.

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onsider your workforce. Do you have some employees who struggle to read, write, communicate and do maths? Is it having an impact on your financial bottom line? Can you tell? The answers are probably yes, yes and not without taking a deeper look, says Graham Darlow, general manager, engineering, of Fletcher Construction Company. “That is Fletcher’s view. And that’s what business leaders should take from a recent Labour Department report indicating that – like Australia and Canada – 40 per cent of the country’s workforce has poor literacy skills. A staggering 46 per cent has low numeracy skills. “These figures should be of great concern to us all,” says Darlow. “Like many New Zealand companies, Fletcher is primarily a ‘people business’. There are many machines on our construction sites, but it’s people who deliver and really add value to our projects. We’re a 100-year old business focused on achieving sustainable earnings over the long-term – so we have always invested in our people.” Today, he says, the Fletcher Employment Education Fund spends millions each year on career development. But basic workplace literacy training has only recently been seen as integral to the company’s overall approach to education and training.

Says Darlow: “Our attitude changed when we assessed that half our workforce (skilled, semi-skilled and unskilled labour) needed to sharpen their ability to read a tape measure, calculate a concrete pour and so on. In an increasingly competitive industry, they needed to become more effective. Literacy training was thus a no brainer.” Darlow says that initially the company didn’t foresee the flowon benefits that would come with boosting workplace reading, writing and numeracy skills. “We started small – training 30 employees a year – and we’re already noting an impact on our business performance.” Darlow reports Fletcher now has a lower staff turnover and is finding its staff more engaged. “We have a growing pool of potential leaders – young people whose confidence and self-esteem have developed alongside their developing knowledge of the 3Rs. That’s important in the face of a leadership skills shortage.” He says the company also has more staff feeling motivated to develop their careers within Fletcher by completing industry qualifications. “I’ve seen young guys pick up the newspaper for the first time,” he says. “Another got his first-ever certificate. Others are able to stand tall and look their managers in the eye – also a first for many of them. Without knowing the

Graham Darlow

basics, they couldn’t progress. Their lack of education was a barrier.” He says supervisors who were resistant to the training at first, now support it. They’re seeing higher productivity and better quality of work from their teams, all pluses for the business. “In just three years,” he says, “we’ve created a groundswell of belief within Fletcher – to the point that literacy training has become part of our ‘business-as-usual’. “As employers we all need to be part of the solution to the country’s appallingly low rates of literacy and numeracy skills. It certainly helps that the benefits that accrue from workplace training far outweigh the costs. “Sure, there’s not just one way to do it. Sure, it takes time, commitment and money. But really – it’s a ‘no brainer’.”

The New Zealand Centre for Workforce Literacy Development Katherine Percy – Chief Executive phone: 09 361 3800 email: kpercy@workbase.org.nz www.workbase.org.nz

JUNE 2010 Management www.management.co.nz 25


OPINION POLITICS

What has the Maori party really won? by Colin James

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hich major party is harder-nosed on bicultural issues: the supposedly soft-centred left-of-centre Labour party or the supposedly hard-nosed rightof-centre National party? The answer will be obvious from the mere posing of the question. The Maori party hates the Labour party for its foreshore and seabed law. It basks in the National party’s indulgence on whanau ora, the United Nations Declaration of the Rights of Indigenous Peoples, repeal of the foreshore law and, still to come as this was written, a constitutional review. It doesn’t like much of National’s social and economic legislation. It condemns National’s refusal of designated Maori seats on the super-Auckland council. But Tariana Turia and Pita Sharples say gains are gains. And in behind the Maori party, requiring its respect, are the iwi forum leaders, who have a special relationship with John Key that is closer than they had with Helen Clark. But how durable is National’s indulgence? How much is symbolic and how much for real? • Sharples said the sign-up to the indigenous rights declaration was with “no caveats”. But the government’s affirming statement made it subject to the “legal and constitutional frameworks” and Key called it “symbolic and non-binding”, “a small step”. • Key said iwi should not get their hopes too high on the foreshore and if “reasonable agreement” wasn’t reached Labour’s law would stay. Sharples and Turia trumpeted it as a triumph. Maori party luminary Naida Glavish called whanau ora “one of the most significant milestones in the history of Maori since the signing of the Treaty”. Sharples called it “revolutionary” because it’s “based on kaupapa and tikanga”. Key and Bill English insisted it would be

26 www.management.co.nz Management JUNE 2010

available to all families in need, would not be bulk-funded through a separate, unaccountable, Maori agency and funding would be less than originally touted. Sharples said a more courageous government would allow Maori-only access. In each case Key’s version prevails for now. Nevertheless, for the rest of this parliamentary term the Maori party is likely to be content with its gains. In politics symbolic gains can have real value; for Maori even more so. Moreover, there is some cause for contentment. If whanau ora works as intended, it could eventually make a real difference. That it will be developed out of existing Ministry of Social Development community link programmes gives some reason to think it might work if well serviced and monitored. The Government has said it may ne-

moral argument in Treaty and other indigenous rights wrangles. So, however far short of its stated aims Maori party members and supporters might feel the party has fallen, come the next election, there is a basis for sticking with Key for now. But what about National itself? So far there is little angst in the party, in part because of Key’s personal standing and his apparent inroads into the Maori vote by proxy via Sharples’ and Turia’s commitment. Over time, however, older instincts may surface – as they did when National went out of office, even though it had approved Jim Bolger and Sir Douglas Graham doing deals with Ngai Tahu and Tainui. Meantime, Labour is vilified by Maori and the Maori party for having passed the Foreshore and Seabed Act and having refused to sign the indigenous rights declaration.

“SOME OFFICIALS THINK HE HAS CONTRACTED A DOSE OF WHAT WINSTON PETERS USED TO CALL ‘SICKLY WHITE LIBERALISM’.” gotiate directly on foreshore and seabed claims. Michael Cullen negotiated a sweet deal with Ngati Porou (better than court action would have delivered if Cullen had not legislated and, Ngati Porou says, probably better than National’s initial preferred line). Finlayson has been generous in his approach on other Treaty claims to the point where some officials think he has contracted a dose of what Winston Peters used to call ‘sickly white liberalism’. And courts and politicians tend over time to give rising credence to international agreements, however ‘aspirational’ and without force they might be initially. Expect the declaration to be used as a

Labour took a hard-nosed and almost certainly correct view that National’s hard politics – claiming that foreshore claims, if uncurbed, would stop barbecuing on the beach – would lose Labour the 2005 election. And it took a hard-nosed – and correct – view that, without a caveat that would hollow out the signing of the declaration (as National has in effect done), a sign-up would widen land-rights claims beyond the Treaty criteria. Sometimes roles in politics reverse. For a time. M Colin James is New Zealand’s leading political commentator and NZ Management’s regular political columnist. ColinJames@synapsis.co.nz


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OPINION ECONOMICS

Kicking profits into touch by Bob Edlin

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he World Cup was still more than a year away in early May, when news media reported that accommodation providers in Auckland were ramping prices several hundred percent above usual rates and adding long minimum-stay provisions. Property owners were asking for several thousand dollars a week to rent out their homes to rugby fans. One Mt Eden bed and breakfast establishment asked $1600 a night. But Bruce Robertson, from the Hospitality Association of New Zealand, told TVNZ’s Breakfast programme several major factors would make $1600 a night in fact a valid amount to charge. One was the close proximity to “one of the top four major world events”. Another was that the B&B rate in question was the price for “a package”. The rates being quoted for accommodation weren’t necessarily the rates that providers would get, of course. If prices were too steep, visitors wouldn’t pay and providers would be left with empty rooms. “We will see the market sort itself out in terms of rates,” Robertson said. Rugby World Cup chief executive Martin Snedden similarly said organisers were confident the free market would result in anyone overcharging having to reduce prices or be left with empty beds. Rugby World Cup Minister Murray McCully nevertheless wrote to the Hotel Association, asking it to persuade its members not to risk damaging New Zealand’s tourism reputation by over-charging for accommodation during the tournament. This would be an exceptional time for the country, we would have a large number of visitors here,“and so while there is a chance to charge a premium, we need to balance that against the reputation for being a welcoming destination and a good place for tourists to come”, McCully wrote. He said it was unacceptable for anyone to “rort” the system and some providers needed to understand the difference 28 www.management.co.nz Management JUNE 2010

between charging a premium and doing something that is “extortionate and harmful to New Zealand’s reputation from a tourism point of view”. Accommodation providers are breaking no laws by raising their rates, however, as long as there is no price-fixing and rates are advertised before purchase. In some parts of the United States during civil emergencies, profiteering can become “price-gouging”, which is a felony. Economists disagree (as they do on many matters) on the wisdom of making it illegal. A pipe-break left dozens of Greater Boston towns without clean drinking water during a recent weekend and consumers were rushing in thousands to buy bottled water. Before long there were an-

tage of consumers, in the sense that they should always charge “whatever the market will bear”. The circumstances should not matter. He suggested that the last time Governor Patrick sold one of his own homes, shares of stock, boats or paintings, he tried to fetch the highest price possible (“whatever the market would bear”), not a penny less. He would do his very best as a seller in every transaction to “take advantage of” the buyer. Earthquakes, hurricanes, floods or massive price breaks didn’t change the fundamental laws of physics, gravity or aerodynamics. Nor did they change the basic laws of supply and demand, Perry contended. If sellers of bottled water in Boston were guilty of illegal price-gouging

“SELLERS ALWAYS TRY TO TAKE ADVANTAGE OF CONSUMERS, IN THE SENSE THAT THEY SHOULD ALWAYS CHARGE ‘WHATEVER THE MARKET WILL BEAR’.” ecdotal reports of price-gouging of storebought water. Inspectors were dispatched, “spot-checks” were conducted, legal action was threatened against offenders who were caught, and Governor Deval Patrick warned: “There is never an excuse for taking advantage of consumers, especially not during times like this.” “It never fails,” columnist Jacob Jacoby huffed. “No sooner does some calamity trigger an urgent need for basic resources than self-righteous voices are raised to denounce the amazingly efficient system that stimulates suppliers to speed those resources to the people who need them. That system is the free market’s price mechanism – the fluctuation of prices because of changes in supply and demand.” Professor Mark J Perry pitched in to agree that sellers always try to take advan-

for selling water at higher market prices after a massive pipe-break, then sellers of all products at all times were guilty of price gouging. That’s because sellers always charged whatever the market will bear. Only in the world of politics, Perry argued, did “anointed elected officials” think they should be the price-deciders who determined whether sellers were gouging their customers. In the real world of the marketplace, the impersonal forces of supply and demand decided prices, “and we’re all much better off with those market-determined prices than with the artificial prices determined by politicians and bureaucrats”. M Bob Edlin is a leading economic commentator and NZ Management’s regular economics columnist.


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NZIM MANAGEMENT SURVEY

Many managers

‘MEDIOCRE’ SURVEY SLIP Management matters. No use arguing the point any longer. But, a just released government-sponsored research report suggests that where effective management matters most, New Zealand managers must lift their game. Reg Birchfield reports.

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or a nation that prides itself on the natural friendliness and personal empathy of its population, it is always something of a jolt to find that, when it comes to people management, we don’t do it very well. Now another rigorously-researched report confirms the fact. The Ministry of Economic Development, in conjunction with The Treasury, Department of Labour and New Zealand Trade and Enterprise, commissioned the University of Technology Sydney (UTS), using study methodology developed by the London School of Economics and global consultancy McKinsey & Co, to review Kiwi manufacturing firms’ management practices. The object of the exercise was to identify key management performance drivers and interpret the relationship between management capability and enterprise performance. The study benchmarks New Zealand management with a range of countries, including the United States, United Kingdom, Canada, Australia, Japan and emerging economies like China and India – 17 countries in all. The findings, according to the Dean of the UTS Faculty of Business professor Roy Green, suggest that while some New Zealand firms are as good as any in the world, there is a “substantial tail of firms that are mediocre”, especially in their approach to people management. And this, he adds, is a key differentiating factor between New Zealand and better-performing, more in30 www.management.co.nz Management JUNE 2010

novative countries. The finding, however, echoes “similar recent findings for Australian manufacturers”. The report is timely, says New Zealand Institute of Management Northern chief executive Kevin Gaunt, and should prove an important touchstone in the development of New Zealand managers. “It identifies that people management is a critical part of the manager’s toolbox and that it is an area where there is a gap in New Zealand management competency,” he adds. New Zealand’s low per capita income

Zealand has weathered the world economic downturn relatively well through an effective stimulus package. But Green warns that the Management Matters study suggests Kiwi manufacturing firms need to improve their management performance to build longer-term competitive advantage. And, according to Green, it reveals that some management practices represent opportunities for improvement for manufacturing firms. “The study shows that a cost-effective way of improving

“PEOPLE MANAGEMENT IS A CRITICAL PART OF THE MANAGER’S TOOLBOX.” compared with other developed countries is both an economic and political challenge. The finding suggests a link between management quality – scored across 18 dimensions of people, performance and operations – and enterprise productivity. New Zealand has, since the end of the 1990s, slipped from 10th to 29th place in the World Economic Forum’s Global Competitive Index (see page eight for the latest rankings) with the 2009 OECD Economic Survey of New Zealand making the point that “boosting [New Zealand’s] productivity growth is crucial for closing the substantial income gap with other OECD countries”. The general consensus is that New

productivity performance by New Zealand manufacturers is to promote a transformation in the calibre of the management and leadership of its organisations. This is the key to a more innovative, dynamic and sustainable economy,” he says. The Institute of Management agrees. “In addition to our learning and performance recognition roles, we encourage research,” says Gaunt. “We look at important global trends in management and at what is actually happening in New Zealand. We analyse and interpret this information and have built a management competency model for local managers to help them build their capabilities. This study will contribute to that work.” The study is also important, says


Gaunt, because organisational success “now depends on attracting and retaining high-quality people, engaging them in the business, and enabling them to be innovative and creative”. “This needs appropriate leadership and management and the Management Matters report suggests New Zealand managers currently do not attach a high priority to this essential management trend,” says Gaunt. “We recognised this a few years ago and have now re-aligned many of our learning programmes to encourage a stronger focus on developing this management capability. ” The ministry initiated the study because it is concerned that, while New Zealand is at the forefront of OECD nations in adopting policies that seem to lead to high per-capita income, the country still ranks nearer the bottom end of the OECD’s productivity league. This paradox, coupled with a lack of research quantifying and analysing New Zealand’s management quality and performance to identify where action might be taken to boost productivity growth rates, was enough to pull other key government departments into sponsoring the research. The study assessed 152 medium and large Kiwi manufacturing firms in 2009. Medium firms are defined as employing 100 to 5000 employees, although in parts of the study the sample is broadened to include firms with 50 to 5000 employees. “The general message that effective management practices improves organisational productivity is still important,” according to the ministry. “Improving management practices has benefits for all businesses.” The study found that, by global standards, New Zealand’s management practices are “average to middling”. On an overall management score by country we ranked 10th out of the 17 countries that have so far taken part in this research. The US tops the chart and China sits at the bottom. Australia is sixth. Of the three areas of management practice measured – operations,

performance, people – people management is our weakest link. Significant findings include: • The nature and characteristics of people management, including collaborative workplace relations and an open organisational culture, are determined more by the firms than the structure of the [New Zealand] labour market. • Management performance is enhanced by high levels of education and skills among both managers and non-managers. • Management autonomy leads to superior management performance. • Balancing organisational structure (hierarchy) and managerial autonomy is critical. • Firm size helps determine management performance; larger New Zealand firms significantly outperform smaller ones. • Ownership is a factor. Multi-national corporations adopt and spread better management practices than domestic firms. • New Zealand’s publicly listed companies exhibit better management performance than other types of companies including privately-owned firms, family-owned firms and co-operatives. • Family-run firms tend to under-perform others in their management practices. • New Zealand managers tend to overrate their firms’ management practices. • New Zealand manufacturers should pay attention to both advanced and emerging economies. People management deficiencies aside, the study effectively answers the question frequently raised by government departments like the Treasury, which has traditionally pooh-poohed any significantly measurable link between enhanced economic performance and money spent on developing capable managers. The quality of management really matters for organisational performance when you consider that: If a business managed to increase its management capability from the lower to the upper quartile, the impact would be equivalent to increasing its workforce by 41 percent or its investment in capital by 75 percent. Surely that’s an investment worth making. M

LEADERS BUILDING LEADERS Our aim is to build management capability through, Research, Learning, and Recognition 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. NATIONAL BOARD PHILLIP MEYER FNZIM (CHAIRMAN) GARY STURGESS Life FNZIM JOHN SANDFORD FNZIM LYNDA CARROLL AFNZIM

BRIAN SOUTAR AFNZIM LLOYD DAVIES FNZIM CHERYL DOIG FNZIM

OFFICES NATIONAL OFFICE ACTING CEO PHILLIP MEYER FNZIM Box 67, Wellington 6140 Ph 0-4-473 0470, Fax 0-4-473 0479 Email national_office@nzim.co.nz National website http://www.nzim.co.nz NORTHERN President: JOHN SANDFORD FNZIM CEO: KEVIN GAUNT FNZIM, FAIM Box 6600, Wellesley St, Auckland 1141 Ph 0-9-303 9100, Fax 0-9-303 9109 Email kevin_gaunt@nzimnorthern.co.nz Website www.nzimnorthern.co.nz CENTRAL President: PHILLIP MEYER FNZIM CEO: KARIN CALLAGHAN FNZIM, FIPAA Box 11781, Wellington 6142 Ph 0-4-495 8300, Fax 0-4-495 8301 Email karin_callaghan@nzimcentral.co.nz Website www.nzimcentral.co.nz SOUTHERN President: BRIAN SOUTAR AFNZIM Acting CEO: TOM McBREARTY AFNZIM Box 13044, Christchurch 8141 Ph 0-3-379 2302, Fax 0-3-366 7069 Email tom@nzimsouthern.co.nz Website www.nzimsouthern.co.nz

NZIM FOUNDATION Chairperson: DAVID MOLONEY FNZIM Secretary: JIM THOMSON PO Box 67 Wellington, Ph 0-4-473 0470 national_office@nzim.co.nz

31


UNDERSTAN TA


HARNESSING THE POWER OF

SOCIAL

MEDIA If your company’s not into social media, the hottest new rocket in business will leave you in its wake. Brenda Ward asks the experts how Facebook, Twitter and YouTube are changing the universe of marketing and communications.

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here have been 153 million blogs published since 2002. Did you write any? Tourism New Zealand has in excess of 100,000 fans on Facebook. How many do you have? There were an estimated seven million messages flying on Twitter last year. How many did you read? Maybe your company has a website, or you’re keeping up with friends on Facebook, or you’re updating your Linked In profile... but if you’re in business today, that’s just not enough, say the experts. You need to be thinking about social media on a much bigger scale. They say businesses need to see social media as a communications and marketing tool, not just as a pastime or a way of keeping in touch with friends. When conversations are online, that’s where you need to be talking too. But, they warn, there are risks with dipping your feet into the new media

LAUNCHING THE TOP 200 CAMPAIGN To launch this year’s Deloitte/Management Top 200 Companies campaign, ‘Understanding the New World’, this is the first of a series of six themes examining major contemporary issues and opportunities for business. This month, technology meets humanity in our social media story. Look out for themes from banking to branding in coming months. Deloitte’s CEO Murray Jack says he’s delighted to be supporting the Top 200 on its 21st anniversary and new initiatives are needed in tough times. “As with all times of economic hardship, the lessons and the people who have learned them will long be remembered as each twist and turn in our journey to economic recovery leaves its mark on those who choose to contribute to our country’s future. “I am confident, however, that the resilience we as New Zealanders have in abundance, coupled with a desire to continually improve our standard of living and our place on the world stage, will deliver the success we all aspire to. Perhaps 21 years is a coming of age for New Zealand business?” Michael Crampin, creative director of branding agency and Top 200 partner Designworks, says he sees the Top 200 as a series of “bold conversations” with business. “The campaign is about understanding the new world through the lens of New Zealand. We can offer a fresh perspective. “We’ve always been known for our human, environmental and entrepreneurial spirit. In this country we have a refreshing way of doing things, and in a small community like ours we have the ability to dream and deliver. With this way of thinking we can be world leaders.”

JUNE 2010 Management www.management.co.nz 35


UNDERSTANDING THE NEW WORLD

“IF THE GOD OF MARKETING AND COMMUNICATIONS SAID ‘I CAN GIVE YOU A TOOL’, THIS WOULD BE IT.” – Tony Gardner, Saatchi & Saatchi

pool – managers need to accept that Twitter, Facebook and blogs demand levels of honesty never before seen in business communications, some of it intensely intrusive. But more on that later. HOW WE RATE

In the United States, a study by global PR company Burson-Marsteller found that 79 percent of the largest 100 companies in the Fortune Global 500 index are using social media tools. But New Zealand is still about a year behind the United States in adopting social media in business, says American-born Auckland Social Media Club member Kevin Ptak. Social Media Club is a ‘global network of local groups of people interested in social media and the changes it is having on the way we

interact and do business’. He says the US is already moving on rapidly to the next step: using smart-phone technologies to connect to social media. A Nielsen survey of 166 marketing professionals run by the Communications Agencies Association of New Zealand (CAANZ) showed most of those surveyed believed in the benefits of social media, for its ability to communicate directly with consumers, to deliver knowledge about what customers want and for increased brand engagement. However, the survey showed 48 of the 166 were not on social media websites. Of those who were, the most popular was networking site Facebook (72), followed by online video site YouTube (52) with 50 on messaging site Twitter. There were 44 using professional network Linked In. And more than a third of those surveyed said nobody was in charge of social media in their companies. Many companies that said they used social media had one lone staffer in charge. One of the growing number of social

media evangelists, CAANZ social media committee chairman Tony Gardner, says social media should be part of every company’s marketing and communications strategy. “The number-one influence in the world for people making decisions is word of mouth. Social media is just a magnified word of mouth. You have to accept that conversation has been happening for ever and social media is just a revving up of it.” Gardner, GM of Digital at Saatchi & Saatchi, sees Twitter, for example, as a huge step forward in immediacy and engagement. It’s a great method of

“DO YOU WANT TO PUT A WALL BETWEEN YOUR COMPANY AND A MAJOR AREA WHERE YOUR CUSTOMERS ARE PLAYING? NO. THAT’S THE START POINT.” – Nicholas O’Flaherty, Auckland Social Media Club

36 www.management.co.nz Management JUNE 2010


“IF YOU DO THE JOB CORRECTLY – ADDING VALUE, EDUCATING, HAVING A HUMAN VOICE, NOT BEING ALL ‘ME, ME, ME’ – YOU BUILD UP A LARGE NUMBER OF FANS, FOLLOWERS, FRIENDS AND CONNECTIONS.” – Debbie Mayo-Smith

listening to your customers, he says. “If the God of marketing and communications said ‘I can give you a tool’, this would be it.” According to Gardner, not only can it tell you what your customers are saying about you, you can ask groups of customers what they want directly, which is much cheaper than running focus groups – and it’s instant. Motivational speaker Debbie MayoSmith sees social media as the new databases of the next decade. “If you do the job correctly – adding value, educating, having a human voice, not being all ‘me, me, me’ – you build up a large number of fans, followers, friends and connections. These are simply different names for your modern database.” IF YOUR COMPANY IS DOING IT, DO YOU NEED TO BE TOO?

Probably yes, according to Forrester Research, an independent technology and market research company that provides advice to global leaders in business. CEO George Colony told the website www.Mashable.com: “You have new employees entering companies. They’re the Facebook generation. They’re saying, ‘Okay, I’m not joining this company until I see the CEO’s social profile…’ To have a limited social profile, although it’s not

logged into every week, lends legitimacy to that CEO.” However, CEOs don’t need to be ‘social heavy’, says Colony. “I’m proposing there would be something called ‘social lite’, which says that the CEO can be social, but in a different way, which is much less high-profile.” He suggests six to eight posts a year on their blog, and between 12 and 24 short statements a year – one or two tweets a month. Surprisingly 99 of the CAANZ survey companies said they did not have a blog – something Nicholas O’Flaherty of the Auckland Social Media Club thinks is short-sighted. He believes blogs were initially taken up widely, but have fallen out of favour and many languish, not regularly updated. But he thinks they are still extremely valuable as a brand exercise and he often uses them in his work with businesses for his public relations company Bullet PR. Social media is a no-brainer, he says. “You’re in a competitive space. Customers are looking online to make purchasing decisions. Are your competitors there? Yes. Do you want to put a wall between your company and a major area where your customers are playing? No. That’s the start point.” Marc Krisjanous, director of Wellington-based email service provider

Mobilize Mail, aims to take down that wall, without companies having to put in the effort. Social media marketing is not effective alone, he says. He believes email marketing is much more effective than social media marketing, and estimates a 40 percent conversion rate for leads, versus 16 percent for Facebook and 0.1 percent for Twitter. After a year researching social media and finding companies were spending too much time on too few leads, the company set up CampaignHub, a division that offers social media solutions software to automatically generate a presence on Facebook and Twitter, and to filter traffic for likely prospects. They then use email marketing to approach the leads. He says: “If 1000 people join your network, you’ll get 100 prospects, and out of that 100, JUNE 2010 Management www.management.co.nz 37


UNDERSTANDING THE NEW WORLD

you’ll get 30 golden prospects who will spend money with you.” EARLY ADOPTERS

Some Kiwi companies are doing social media extraordinarily well, in fact, ahead of the pack globally. Deloitte’s New Zealand People and Performance Team won a SOCRA international social recruiting award for using Facebook and Twitter to create a following of over 1200 people for its graduate recruitment programme. The team used blogs, videos, online discussions and a world first in recruitment: live and interactive video forums. O’Flaherty and Gardner both cite rapidly growing telco Orcon, where call centre and sales staff have Facebook and Twitter pages open alongside email on their screens while they work. They offer advice and solutions in whichever medium their customer prefers, CEO Scott Bartlett says. And Air New Zealand’s controversial Grabaseat ‘cougar’ campaign illustrates how effective viral YouTube campaigns

can be. Although it was pulled after some complaints (and some compliments), CEO Rob Fyfe says he sees it as a success. “It was controversial, but it increased our profile offshore; it got a couple of million hits on YouTube. But we pulled it and I said, ‘We’re sorry if it offended you.’” He’s since used a video message to the NZ Listener, www.dearlistener.co.nz, to similar effect. Fyfe says this “human-ness” is one of the traits Air New Zealand prides itself on and adds that 30 percent of feedback he gets comes via Facebook. “A number are staff and customers, but I have photos of my family on Facebook. I don’t isolate work and social life.” Like Fyfe, to get the best out of social media, experts agree you need to scatter personal information, hobbies and business facts into the mix. It can be at this point that some managers get cold feet. But, says Tony Gardner, companies have to get more human, and involved with stakeholders. “That is what the customer wants.” As people are increasingly trusting the advice of strangers (such as on www. tripadvisor.com and www.foursquare. com) before they trust the media or company messages, communications have to change. Says Gardner: “Social media will change advertising. If the advertising message is different to the reality, I’ll know about it pretty quickly. Social media etiquette requires honesty

and transparency. Take Dell – it was in deep trouble, so it created the Ideas Storm [a website forum for feedback].” Dell listened to the feedback, used some of the ideas – and it worked. In the rush to get social-savvy, social media education is becoming mainstream. Professor Andrew Stephen, of the marketing department of Insead University – a multi-campus international graduate business school and research institution – trialled an MBA advertising and social media strategy elective in Singapore and is now teaching the course in Paris three times a year. “Social media is the ‘Wild West’ of advertising and marketing communications channels,” he says in the notes that go with the course. It is a fast-growing, ever-evolving, innovative and entrepreneurial space that, despite its increasing ubiquity, is not well understood from a strategic marketing perspective.” So if you’re not involved, you risk being left behind. Where does this leave the portion of the population with very low and poor (prose) literacy skills, which is 13 percent and 27 percent respectively of New Zealand adults? Katherine Percy of Workbase, New Zealand’s leading organisation tackling literacy and numeracy issues in the workplace, says: “While many people with poor literacy use Facebook and write short texts on topics that are familiar and interesting to them, social marketing with

“IT WAS CONTROVERSIAL, BUT IT INCREASED OUR PROFILE OFFSHORE; IT GOT A COUPLE OF MILLION HITS ON YOUTUBE.” – Rob Fyfye

38 www.management.co.nz Management JUNE 2010


a commercial purpose may not be accessible to them. Will we see a wider ‘digital divide’, between those who can afford computers and broadband at home and those who can’t?” she wonders. THE DOUBTERS

Then there are those who fear that the disciples of social media seduced by all the euphoria of brave new technologies will be making a mistake by rejecting tried and tested forms of marketing. Chris Marriott, vice-president and global managing director of Acxiom Digital, asks: “When boardrooms are buzzing with the need to set social media policy, roll out mobile marketing programmes or explore the capabilities of the newly implemented digital platform, do we forget to keep marketing relevant and appropriate in our enthusiasm to ride that shiny new train? “If you are plunging head first into Facebook and Twitter to keep up with your key competition, I would advise you to rethink. Rather than questioning what percentage of your budget you should allocate to social media spend, ask if social media is best for your business.” Marriott suggests successful multichannel marketing requires multichannel management. “Traditional marketing channels will not necessarily be less effective simply because something new has come along. As has always been the case, any new methods should be carefully considered and introduced in conjunction with your current marketing efforts.” And will we go into social media overload, as we do with emails? Debbie Mayo-Smith says: “Yes, yes, yes. Even though I have only 620 fans on

HOW TO GET STARTED? NZ MANAGEMENT ASKED THE PROFESSIONALS HOW A MANAGER COULD SET UP AND USE SOCIAL MEDIA IN A BUSINESS. HERE’S OUR FIVE-STEP GUIDE: 1. Go to Twitter, Facebook and Linked In and set up profiles for yourself. Explore, search for famous people, communicators you admire and experts in your field. Become a friend or follow a few people to see how it works. There are millions of words – your challenge will be finding information you like, trust and understand. Try following editor ‘Brendaward’ to see how to use Twitter, look at ‘thedailylark.com’ for excellent blogs (Kiwi Andy Lark of Dell – see Lark also in Managers Abroad p13 of this issue), search Facebook for the awardwinning ‘Your Future at Deloitte’ site. 2. Find a few people who use social media prolifically to have a conversation with. If you can’t find staff, any ad agency will have someone who understands social media. Have a coffee and a talk about it. 3. Get a group together as a working party. Start in a small way, with just one person (and a backup) updating the sites. You’ll find customers will get familiar with one personality and get to know their ‘voice’. 4. Decide who in your organisation should be in charge of and involved in social media. The IT department will have the know-how, but those in customer management and call centres will find it most useful. Social media is a great place for customers to say, “I don’t understand how to make this work,” says Saatchi’s Tony Gardner. Reputation management is another area where your public relations teams should get involved. 5. Invest. Where a role updating blogs is simply added into a person’s role without any remuneration, it’s unlikely to be successful, the experts say. Everyone’s busy and blogs and tweets are unlikely to be updated often enough. Think about employing a social media marketer to take charge for campaigns across Facebook, Twitter, and YouTube. If you’re looking for ideas, again ad agencies are good at thinking up ways of using sites for engagement.

my Facebook business page and 597 followers on Twitter, you can blink and 300 tweets will pass by; the same for status updates. The problem – just like email – is filtering out what is relevant and what isn’t.” So, when social media is right for your business, how do you get started? Read our five-step guide and just launch it. Gardner says managers shouldn’t worry about the number of hits their blogs or Facebook pages receive. “That’s irrelevant at the start. Just ask one of

the early adopters in your company to help and get it set up as soon as you can,” he advises. He sums it up: “I think between 2009 and 2011, the understanding we have of social media is going to change. It’s going to move into the middle of a marketing and communications mix. It’s not the be-all and end-all, and you’ll definitely be using other key channels (advertising, communications and experiential) for social engagement, but you’ve got to be there.” M JUNE 2010 Management www.management.co.nz 39


PHOTO BY JAN MICHAEL DAVID

FACE TO FACE

Kevin Bowler

Mr Tourism

CEO Kevin Bowler plans to take Tourism NZ into the digital age.

Kevin Bowler, our new head of tourism, already has a vision of how to build this country’s visitor industry – and it’s a digital future he’s foreseeing. by Brenda Ward

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ouldn’t your business love 100,000 fans on Facebook? You might only dream of that, but Kevin Bowler walked into Tourism New Zealand on his first day to find that his new business already had this massive fan base. “And we’d like to see that grow,” he laughs. However, with roles in Telecom, Unilever and NZ Dairy Foods, Air New Zealand and Cadbury behind him, Bowler is taking his new job very seriously. “Tourism earns nearly $10 billion in foreign exchange, making it a very important part of our economic growth story,” he says. So in his first few weeks, he set about creating a three-year marketing plan, with the emphasis on a much greater use of digital media. “It provides the ability to target prospective visitors much more ac40 www.management.co.nz Management JUNE 2010

curately. For countries like New Zealand, the internet is a real benefit both through search behaviour and use of social media. “Digital marketing helps show prospective visitors what a holiday here is all about and helps people facilitate a trip to New Zealand.” People who visit New Zealand go away with a strong appreciation of what they’ve seen, which probably accounts for the fans we’ve accumulated on Facebook, he says. User reviews have become the most influential information source on the net. “People trust strangers. The whole world is upside-down; first they trust strangers, then journalists, then businesses.” A web strategy is most effective for younger people, but Bowler says it’s amazing how much travel research is done

online by all sorts of people. “It’s not about selling tickets, it’s about helping people to move to the imagination phase. People say, ‘I’ve heard of New Zealand’ and it’s favourable information, but they’re not sure what it’s like. This is the dreaming, inspiring phase; then it’s about helping in the planning stage.” Bowler’s big goal is to grow the value of international visitors on three counts: • The number of people who arrive. • The length of the stay. • The average expenditure per day. “It’s not complicated; it’s very straightforward.” But how does he make that happen? As well as the digital strand, he says Tourism NZ is also actively working in partnership with business enterprises, such as Air NZ, Singapore Airlines, Qantas


and airports, as well as other government agencies such as RTOs (Regional Tourism Organisations).“By partnering with commercial enterprises we can attract private investment to make the Government’s investment go further so we get a better return on that investment.” Tourism NZ predominantly looks at leisure travel, with some interest in business and visiting friends and relations, but the main target is holiday travellers. Of course, the Rugby World Cup is this year’s focus. “There will be big tourism and long-term economic benefits beyond just tourism. There will be 85,000 extra visitors coming here for the event. We are hoping for a festival, party atmosphere.” The key immediate challenge Bowler sees will be accommodation for the Rugby World Cup, but challenges are also coming out of the global slowdown and the stuttering recovery. “We are emerging [out of recession] but we’re uncertain of the speed of the recovery. As stimulus packages get removed, will there be a slowdown? In the markets we’re targeting, we expect steady improvements, but that may not happen.” The effect of the global recession continues to be felt by the New Zealand tourism industry and while visitor numbers improved in the year to March 2010, their total spending declined by 2.2 percent. Travellers generally tightened their belts and at the same time unfavourable exchange rates made New Zealand a more expensive place to visit. The tourism industry has been working hard to counter these influences by stimulating demand through sharpening prices, but the performance of the industry this year will depend on global economic performance and recovery of our key markets. Bowler is keen to see the strengthening of air routes by way of capacity.“It has been shown that where you have high levels of capacity, you see demand created. There has been massive growth in Europe with low-cost fares, but it is a bigger market. If you provide volume and offer sharp prices, you get people to travel when otherwise they would not have.” He sees protecting and building air connections as a priority,

because “long and skinny” routes like those servicing this country are vulnerable. The environment continues to be a key selling point for the brand and the 100% Pure marketing campaign is continuing to work for us. “Visitors rate us highly, but they are conscious of the carbon footprint. It will have a far more significant impact on travel decisions for Europeans. “Environmental concerns will affect us and we haven’t got the answers around that yet,” he admits. There have been ups and downs among our international markets. The only markets to grow have been Australia and Germany. Japan has been heavily hit by recession and the H1N1 virus, which will mean a slow recovery. Bowler’s focus is on value. It’s not about getting one million more low-spending travellers, but promoting in markets with the greatest growth-value potential and the greatest medium-term upside. The big three Tourism NZ is targeting are the US, China and Germany. • United States: “The US has great visitor outcomes – they spend and stay. With Air New Zealand, we will target the West Coast. We think we can grow that market by a significant amount with a range of activity – TV, airfares, promotions, the cruise sector.” • Asia: “We can’t underestimate the power and growth of the Chinese. They didn’t have a recession. It’s the second largest economy in the world. There’s a rising upper-middle-class maturity in international travel that we can’t afford to ignore.” • Germany, also Austria, Switzerland and Eastern Europe, which rank highly for length of stay and expenditure: “We are confident that Germany is the strongest European economy, and it will recover at a better rate than other European markets. What they look for and what we offer are tightly aligned.” Bowler says Australia will remain our most important market. Spending by tourists from that country was up by 9.4% to $1.8 billion in the March 2010 year and was responsible for cushioning a decline in overall spending as the reces-

TRAVELLER STAGES 1. 2. 3. 4. 5. 6. 7.

Being aware of New Zealand. Dreaming. Planning. Deciding to buy. Beginning the trip. Euphoria. Review/recommend and revisit.

sion bit into long-haul travelling. The UK is likely to still be number two, but economic conditions there don’t suggest a great recovery from reduced spending from that market last year. New Zealand is a niche destination, which is a great place to for us to be internationally, says Bowler. For youth globally, we are a great adventure destination, he says. Tourism NZ is using a “going all the way” growth strategy in Australia to encourage travellers to that country to move on to New Zealand rather than returning home. We’re also fostering other special interest groups: the cruise market, luxury, cycling, golf or fishing holidays, food and wine. We’re very competitive in the honeymoon market too. We have a “fabulous” luxury market, says Bowler but regional food and wine efforts are still in their infancy. “Australians do it so well. That’s the level to aim at. There are opportunities to help Australians see that there’s a lot more to New Zealand than just Queenstown and Rotorua.” New Zealanders themselves are great advocates for their country and contribute much to the “experience” that visitors enjoy here, says Bowler. “The fundamental thing is, we have a great property and the people who live here love it. Most of us live here because we want to – we have options, we could live somewhere else. “In how many countries does the prime minister offer to be Minister of Tourism and agree to go on Letterman and talk about New Zealand?” But it’s not just John Key who’s passionate about tourism in New Zealand. Bowler grins. “I do think this is the best job in the world.” M JUNE 2010 Management www.management.co.nz 41


smartcompany Inside the brain of

A TECH TRIBE CULTURE CLUB Scott Bartlett says Orcon’s “circular” culture of creativity and innovation has got his internet service provider company to number four telco in New Zealand. Brenda Ward finds out how.

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alking out of the lift at Orcon, you suddenly enter the human brain – winding white spongy tunnels. I’m heading to meet CEO Scott Bartlett, a man who’s so obsessed with the brain and what it can do that Orcon’s workspaces are reached by giant inflatable corridors that replicate our complex neural pathways. How can you not think creatively when you walk to your desk every morning through a pathway that gets your synapses firing? “You might have guessed that we do things a little differently,” says Bartlett as he settles in a lounge chair in his airy Northcote office. The offices reflect the culture. “Our culture puts value in lateral thinking and intellectual capability. We thought,

‘wouldn’t it be great to walk around inside the human brain?’” Orcon is New Zealand’s fourth largest telco, after Telecom, Vodafone and TelstraClear, although Bartlett concedes there’s quite a gap between them and the big three. Still, not too shabby for a company that started out of Seeby Woodhouse’s bedroom 12 years ago and was sold three and a half years ago for $24 million. That’s when Bartlett was given the top job, and he fully expects to lead the company to the $100 million revenue mark next year. “We’ve really just been the ‘contender’ brand, but the brand that can seriously challenge the leaders. We’ve been bringing really good internet to Kiwis and that way we’ve been able to

Scott Bartlett sees himself as the chief with the Indians in a circle around him – a tribal structure.

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carve out a name for the brand.” There are two reasons this contender’s punched above its weight, says Bartlett: really outstanding service (“because telcos generally suck at that!”) and providing competition to the big guys. Orcon has an alternative way of doing things. “Doing things differently is essential for survival. You have to do something that will make people sit up and take notice.” For Orcon that’s been with products, approach and marketing – oh and the “Orcon tribe”. “If everyone walked out today I wouldn’t have a business. You have to get the tribe working as a team,” he says. A tribe – that’s how everyone at Orcon sees themselves. Bartlett is the chief in the middle and everyone else is the tribe gathered around the camp fire in a circle, rather than the traditional office pyramid culture. There’s still a pyramid, says Bartlett, but it’s at the centre of the camp fire. “This creates a sense of equality that removes fear,” he says. “You can’t have an effective culture if it’s governed by fear. And no fear means people are happy to talk about their ideas. After all, I don’t know all the answers – no one does – but there are 250 people sharing ideas.” But, as Bartlett points out, Telecom has 7000 people – in fact by his calculations, more general managers than Orcon has staff. “So we asked, ‘how do we create depth?’ We have a tribe mentality. We are smaller, but we can do things better and smarter. We can’t outspend them, we can’t outshout them,


we can’t out-technology them for long. What’s left? We can out-think them and we can out-manoeuvre them. If we have a happy and successful tribe that is motivated, it will just happen.” He calls the process ‘culturing’ which, yes, has become a verb. Bartlett says the company has been averaging 55 percent growth per annum – it slipped to 47 percent last year during the recession, still an impressive performance in a business environment in which many companies were going backwards. “If we see just two to three percent growth per month, we’re not very happy, we need to see more.” International termination services have become a huge part of the company’s financial growth, but even locally Orcon’s growing like a weed – a quick glance into the sales pools shows calls coming in at a rate of 400 new customers a day, everyone from ‘heartland’ Fonterra farmers to ‘stylish singles’ and ‘family units’, all categories that get their own targeted products and marketing. Just 30, Bartlett says he’s pretty much only ever run companies in his working life. Fresh from university, he thought the internet might be big some day so he got a job working for a little hosting company of five guys, sold it to Quik Internet, then on-sold that to iiNet in Australia. From there, at 26, he was hired to run Orcon when Seeby Woodhouse went into semi-retirement at 30. “I sold the business for him to Kordia, who were silly enough to rehire me as chief, a job I’ve done for three and a half years.” Not so silly. “I hope I’m learning all the time. The chief part of my job is to do a lot of listening. If I stop doing that, I get out of touch. CEOs get bad at that.” Plus, he says one of his tribe will remind him if he slips; part of the joy of a climate where fear isn’t allowed to flourish. “I’m not finished my mission here. Our single organising idea is ‘think ultimate’. I don’t want to be the best telco – that’s a low bar. I want fans, not customers, until I build a fan club. The end of my journey is when I have fans. Then I’ll take my skills to my next challenge.”

Scott Bartlett feels his job at Orcon won’t be done until he has ‘fans’.

In the meantime, what about mobile? Yes, confirms Bartlett, you will see Orcon in the mobile space – and this year. Why this year and not before? “If you can’t do anything special and different, you will get anaemic margins. It’s difficult to innovate when you’re putting lipstick on the dog. But we’ve found some really good lipstick. It’s not about doing metoo’s. The mobile space is exciting.” Finally, I get to walk around the rest of Orcon, through the brainwaves that keep the business dynamic and focused. I find one floor branded with two of the firm’s values, Trusted and Premium, a little more conventional. But the floor

Optimistic and Alternative is heralded by a velvet love seat and purple walls. I wonder if Bartlett’s home is similarly radical. Not so. He and partner Adrian have just bought a home in an up-and-coming Auckland suburb and their first job is to lose the orange feature walls. “I believe you’ve got to have a sense of accomplishment in your work life and feel you’re included in a positive culture. Plus, you’re got to be enthralled and happy in your personal life.” So, will he too retire at 30? “No! As of this month I have an enormous mortgage.” M JUNE 2010 Management www.management.co.nz 43


INTELLECTUAL PROPERTY

LOCKING UP

ideas online With the rise of the internet, the risk of losing your hot new product to a rival has suddenly become very real. You can’t shut your ideas up with a lock and key, but you can take steps to protect them, says Simon Martin.

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he internet is a fantastic business tool. Particularly in countries such as New Zealand, which are geographically isolated and have a small population, the internet presents an opportunity to reach a whole new world of potential markets. Even for very niche products, a widened market of all internet users offers the potential to support a business that would not otherwise be viable within New Zealand. Although the benefits to business are numerous and far-reaching, the flip side is that the same technology presents some real risks and challenges that cannot be ignored. These include: • The ease of copying. • The perfection of the copy. • The ease of distributing the copies. • Difficulty in locating copies.

Simon Martin: The internet is rife with risks for those with bankable ideas.

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• Difficulty in enforcing your rights in relation to the copies. • Inadvertent leaking of ideas and information. COPYING

In the past, copying technology resulted in a less-than-perfect reproduction (whether it was photocopying, copying pictures or videos, or copying a sound recording). But technology has advanced to such an extent that not only is it easier to create copies, but the quality of the copies has reached perfection, making it extremely difficult to discern the original from the copy. The internet has also offered an incredibly easy tool to distribute these copies anywhere in the world. The original owner has rights to stop this copying – and rights in relation to the copies that are made – but exercising these rights is not that easy. First the owner has to be aware that the copying has occurred (which is not as easy as it sounds). Then they have to locate the person who has carried out the copying – again not an easy task. And finally they have to get a court to enforce their rights in the country where the copier and the copies are – not a cheap or quick process. At the core of the law is the ability to sue and enforce your rights. However you have to consider the risks of this. Different markets have different rules (sometimes large, sometimes quite subtle) applying to intellectual property and how it is protected. On a global scale, it could prove very

expensive for a New Zealand company to sue in another territory. You have to consider whether you can afford to pursue a case – and actually, if you have the time and energy to do it. Unlike physical or tangible assets like a car or a house, the owner can’t lock up a creation or idea, or build a fence around it. But, assuming that the owner wants to limit access to the creation, they can do the virtual equivalent of locking it up. Such protection is effectively limiting someone else’s access to the creation. For example, if you’re selling works over the internet, the owner could: • Ensure that anything of value is not able to be accessed unless the owner knows or can find the person that is downloading or accessing it. An example would be to show low-resolution or watermarked copies of the photo that you are selling, but have high-resolution versions available only on being paid and with enough information to locate the purchaser. You could keep a record of the purchasers of the photo, so that if there are improper copies released you have a short-list of those who might have created them. • Or you could use technology within the work so that it is of no use unless you get another key part not available over the internet, so that you can get payment, know the identity of the person and nullify the value of the copy. For example, you could ensure that any samples of the software you are selling are able to be accessed on a ‘try before


you buy’ basis and are of limited use with limited functionality. You could embed in the software product technology that requires a valid software key issued on an individual basis, so that the key for one version cannot be used in another. But if you’re planning to restrict access, you need to do a cost-risk analysis. Limiting access, having a two-step sale process or identity checks may scare away customers. Ask yourself; do the costs of protecting the work outweigh the benefits of preventing unauthorised copying or your ability to enforce your rights? Even in deciding who accesses it, there are decisions to be made. The owner needs to think about what degree of verification is appropriate. Will you accept hotmail addresses? Will you require physical addresses, telephone numbers, credit card details? Will you actually check that the numbers are correct? Verification could be costly, but could be worthwhile in the long run. Obviously, with a work where you expect to only sell a few, with high margins, you may tend more towards greater protection. However, for works that have a mass-market appeal with low margins, it may not be worth the cost of verification, the costs of a two-step sale process and the likely lost sales from these. Having one or two copies without payment is perhaps a risk the owner would assume on the basis that it’s not worth pursuing the party or incurring costs for a small retail value. Of course, in addition to locking up the work, the owner can make sure buyers want to purchase from them because of added value (actual or perceived). This might come in the form of increased levels of support, reputation or branding associated with market leadership quality. You only have to think about any famous brand to see how perception can make the difference in a purchaser’s selection. For example, there are any number of colas on the market, but people regularly buy Coke and Pepsi. Why? Taste preference? Possibly – but have they tried the other colas? Brand loyalty can make a huge

You can’t lock up ideas on the net like you can your home or car.

difference. So does the image of serving up a Coke or Pepsi versus Simon’s Cola. LEAKS

The internet also means information can easily be inadvertently leaked and the value of an idea can be lost if it is leaked. The ease and speed of information sharing by email means people don’t stop to think about the information they’re sending. When you hand over physical copies of plans you may pause and wonder if it is a good idea, but attaching a copy is so simple that the same thought process doesn’t always happen. The problem has only got worse with the rise of social media and networking technology. As a result, it is important for employers, particularly those in the creative industries, to ensure that staff who might have access to information are educated about the risk. Employers should consider developing guidelines on what can and cannot be done using technology and what access staff get to social media websites. If an employee might post information in the wrong place, the guidelines should be included as part of their employment contract. This will hopefully flag the issue as an important one in the minds of employees and will also give the employer a basis for legal action if the rules are breached. Any company that regularly engages contractors, either individuals or companies, should also

consider including similar terms in any contractor’s agreements. The employer also needs to consider whether they exclude access to Facebook or other social networking sites from within the work environment. Remember, the internet has enhanced opportunities for creating viable, profitable businesses – but it also comes with additional risks. Internet material is intangible and there are challenges to stopping it being distributed, copied or leaked. An owner has rights, but it may be difficult to enforce these rights if you can’t find the infringer, if it’s too expensive to pursue the infringer, or if it’s difficult because of jurisdiction issues. Basically, the owners of commerciallysensitive material should take practical steps to lock up their works in the same way that they would lock up their factory, their car, or their home. They need to consider what level of access they will permit to their idea or work, what level of identification or verification they will have, and what type of person they will allow to have access. They will also need to consider what access they will allow their employees and contractors to have to the internet to avoid the idea being inadvertently leaked. M Simon Martin is a partner in Auckland law firm Hudson Gavin Martin, which specialises in intellectual property and technology law.

JUNE 2010 Management www.management.co.nz 45


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AWARDS

Brand NEWS SMART THINKING

Innovative design thinking has won Designworks a major award.

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he winner of the supreme award at this year’s Vero Excellence in Business Support Awards, brand design agency Designworks, is also responsible for the look and feel of the Deloitte/Management magazine Top 200 campaign (see page 32). “Michael Crampin and the creative team at Designworks have succeeded in creating an exciting concept for the awards to mark their 21st year,” says Brenda Ward, editor of NZ Management. Designworks won Vero the award for design thinking that’s had a transformational effect on the business performance of its clients, says Sarah Trotman, managing director of Bizzone, which has run the award for six years, for excellence in services to SMEs. Other 2010 award winners were Kerridge and Partners, Telecommunications Dispute Resolution, UniServices, Rotorua Chamber of Commerce, EECA, Life Care Consultants and Enable Networks. Business commentator Rod Oram took out the BDO Individual award. Prime Minister John Key congratulated the winners at a gala dinner at the Auckland Town Hall, joining more than 500 business leaders. The awards are supported by foundation sponsor Vero, BDO and NZ Management magazine. Previous supreme award winners include MYOB and The National Bank. “The bar is set high,” says Mike Watson, CEO of the New Zealand Business Excellence Foundation, which evaluates the awards.“The winners are the organisations that are able to demonstrate sustained re-

Designworks group CEO Sven Baker (front) with Bizzone managing director Sarah Trotman and Ian Walker, Vero’s marketing and communications manager.

sults over time. Excellent business support assists New Zealand businesses to build capability and capacity.” As well as being the Vero Supreme Award winner, Designworks also won the BDO Business $5 to $10 million Turnover Award, beating off finalists Video Pro and Digital Island. Designworks Group CEO Sven Baker said: “We are fundamentally change agents who deal directly at board and CEO level to understand business imperatives, and then work with clients to identify a market space that they can credibly own, and then how they can gear their business around that space to deliver upon their promise. We are able to do this through a rigorous process which combines leading design thinking with top creative. Put simply – ‘informed intuition’.” Ultimately, he says, the company provides clients with clarity as to how they can compete. This has resulted in several of its clients growing through the recession, with some exploring new market opportunities, and one whose business

model has been completely flipped on its head with great success. Designworks likes to take a ‘background adviser’ role, working with clients to resolve business issues, to create a new direction and then an implementation plan, often also engaging the services of partner agencies. The winners were: Vero Supreme Award, Designworks; BDO Business Less Than $5 million Turnover Award One on One, Kerridge and Partners; BDO Business Less than $5m Turnover Award One to Many, Telecommunication Dispute Resolution; BDO Business $5 to $10m Turnover Award, Designworks; BDO Large Business Award, UniServices; BDO Not for Profit Award, Rotorua Chamber of Commerce; BDO Government Award, EECA (the Energy Efficiency and Conservation Authority); BDO Education Provider Award, Life Care Consultants; BDO Regional North Island Award, Rotorua Chamber of Commerce; BDO Regional South Island Award, Enable Networks; BDO Individual Award, Rod Oram. M JUNE 2010 Management www.management.co.nz 47


EVENTS

The buzz about

Bizzone B

izzone 2010, a three-day business expo featuring leading international business brands through to local service providers, is rolling out over the next three months. Events planned for Auckland, Wellington and Christchurch are expected to attract more than 13,000 people. The expo offers business owners the chance to check out the latest business products and services, and gives them a chance to network with thousands of other business owners. Seminars will show attendees how to improve productivity, increase profitability and learn how to better manage their businesses. The expo is needed more than ever in the current climate, believes Sarah Trotman, managing director of Bizzone. She believes good managers who have clearly identified the direction of their businesses, the areas that need working on, and are getting the support to make these changes

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will come through the recession strongly. “Business needs to remain vigilant on key areas, like cash-flow, productivity, business culture, and innovation,” she says. “Business owners are continuing to work 25 percent harder just to stay in the same place, but it is the business support organisations such as the professional services, the economic development agencies, the government departments and business mentors that will offer them the help they need as they move towards their longerterm goals. Overconfidence and a belief that things will get better quickly is naïve and dangerous.” The Auckland event runs at the ASB Showgrounds, Greenlane, from June 2-4. Wellington’s will run from July 21-23 at the ASB Showgrounds and Christchurch’s event is scheduled for August 11-13 at the TSB Arena. The expo features exhibitors, free seminars on all three days, a forum called The Pitch for Rugby World Cup business

opportunities, and Unlimited Business Mentoring free to attendees. A new feature this year is the Stuff-Up Room, dedicated to prominent business owners talking about the lessons learned from the mistakes they have made and the resulting positive results on their businesses. The Money Zone has a financial focus and The Sustainability Zone offers advice on green goods and services. Independent exit data taken by TouchPoll revealed that at previous expos, 97 percent of attendees rated their visit as satisfactory, good or excellent. More than half had done business with exhibitors at the expo and 61 percent planned to do business with exhibitors in the future. Trotman urged business owners to seek out the support they needed, not to wear the struggles of the business on their own and be open to new ideas, products or services that would help support green shoots in their businesses. M


SINGAPORE AIRLINES BUSINESS CLASS Experience the epitome of business class travel. Complemented by the award-winning KrisWorld inflight entertainment system and the inflight service even other airlines talk about, it’s more than just business as usual. singaporeair.com ;OL MLH[\YLK WYVK\J[ PZ H]HPSHISL VU :PUNHWVYL (PYSPULZ» ( HUK )VLPUN ,9 ,_WLYPLUJL P[ VUIVHYK ÅPNO[Z :8:8 IL[^LLU (\JRSHUK HUK :PUNHWVYL HUK VU ZLSLJ[LK ZLY]PJLZ MYVT :PUNHWVYL [V )HYJLSVUH )LPQPUN +LSOP -YHURM\Y[ /VUN 2VUN /V\Z[VU 3VUKVU 4LSIV\YUL 4PSHU 4VZJV^ 4\TIHP 7HYPZ :HU -YHUJPZJV :LV\S :`KUL` ;VR`V HUK A\YPJO


EXECUTIVE TRAVEL

The hill villages of the Cinque Terre.

Great getaways GLOBAL

By Anne Van Dyke and Brenda Ward ADVENTURE Trekking with elephants

Combine the fantasy of a campsite in an African national park with a Thai tropical forest environment at Thailand’s first luxury tented jungle camp. The 25 luxurious tents are tailor-made and set in the largest area of rainforest in Southern Thailand. Each tent features twin beds, fan, kettle and bathroom with toilet and hot shower. This is your chance to get close to some of the most extraordinary animals on earth, with elephant treks, trips to explore Cheow Larn Lake, jungle hikes, mangrove forest exploration and canoe safaris.

New York, the city that never sleeps.

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Package cost: From $1199 per person twin share. Excludes airfares. UNWIND New York city discovery

Eat and shop your way around the Big Apple, for an exciting metropolis experience in neighbourhoods that are always reinventing themselves. Shop in one of the world’s great fashion capitals, picking up special pieces from Macy’s, Saks or Bloomingdale’s. Put aside a day just to window shop on Fifth Avenue, or hit the boutiques of Soho or the newly fashionable Nolita (North of Little Italy). Then at night enjoy Cuban cuisine with live

salsa music in Harlem or take a cab to quaint Soho for Italian. New York is a city that never sleeps, so great food is on offer round the clock. Take a picnic to beautiful Central Park with traditional corn beef on rye sandwiches ‘to go’ from one of the famous New York delis. Stay anywhere from budget backpackers to luxury hotels. LUXURY Chianti and culture

Italy becomes a place of friends and laughter when you travel in an intimate group of like-minded travellers on an 18-day grand tour of the country’s greatest sights. Local guides offer an insider’s view and overnight stays are mostly in appealing family-run boutique hotels. From an alfresco lunch at a family home, to Nana showing how she makes her pasta, this tour makes Italy memorable. The trip includes the Cinque Terre hill villages, the Amalfi Coast, Leonardo da Vinci’s “Last Supper”, and Pompeii. Tour package: $11,390 per person, twin share, through the Anne Van Dyke Travel Club. Excludes airfares.


Outback air safari.

Unwinding at Gwinganna.

UNWIND Escape the burnout

LUXURY Bali Hai

On a private aircraft, link the best of the Red Centre, Top End and Kimberley into one journey of a lifetime. Guides include indigenous custodians, rock-art experts, cattle station owners and locals along the way. The air tour brings to life the features that make Australia such a special place. The itinerary takes you from Melbourne and Coober Pedy via Alice Springs and Darwin, to a lavish and remote bush camp at Faraway Bay. The trip includes a cruise along the Kimberley coastline and Uluru (Ayers Rock). Tour package: From $18,010 per person, twin share, single supplement $1292, through the Anne Van Dyke Travel Club.

At Gwinganna you’re hosted in luxury villas in the hills inland from Surfers Paradise, Queensland, for a break that’s all about recharging the batteries and living a healthy lifestyle. Take a bush walk in the morning, learn to relax and breathe properly with Qi Gong, and experience world-class spa treatments and massages, with delicious hotel-style organic food at every mealtime. Everyone from Nicole Kidman to AFL bosses have found themselves basking in of peace and serenity at Gwinganna. A five-night Optimum Wellbeing package in a deluxe double room is $2875 per person, excluding airfares and connections, www.gwinganna.com.au.

Explore the hidden secrets of Vanuatu by the water. The Secrets of Bali Hai is a sixday luxury cruise inviting you to explore Vanuatu on board a small ship. Expert guides escort guests deep into the interior to uncover the region’s wildlife and stunning scenery. Take specialised expeditions like trekking, kayaking and village tours ... or just relax with a good book from the library on a steamer chair. Island Escape Cruises are all-inclusive: luxury boutique accommodation, chef-prepared meals, shore excursions and guides. Expedition Cabin: $2995 per person triple share, excludes airfares. Bridge Deck Cabin: $4475 per person twin share, excludes airfares.

PACIFIC

ADVENTURE Kimberley flyaway

Escape to luxury this winter for 15% less New Zealand has lots of special places to visit, from mountains and country retreats, to vibrant cities and idyllic vineyards. And this wonderful diversity is best experienced from the luxurious comfort of a Heritage or CityLife Hotel, especially with the guaranteed 15% discount off our Best Available Rates online. Just enter MGMT15 as a promotional code at our website to grab your discount!

www.heritagehotels.co.nz

*Valid weekends and school holidays until 30 September 2010, subject to availability. Discount is off Best Available Rates bookings made through Heritage Hotels website only.

NORTHLAND • AUCKLAND • ROTORUA • WELLINGTON • NELSON • HANMER SPRINGS • CHRISTCHURCH • QUEENSTOWN P29/16462

JUNE 2010 Management www.management.co.nz 51


Romance at Mollies.

church airport, the Heritage Hanmer Springs attracts tourists to relax and unwind at the modernised, awardwinning, Hanmer Springs Thermal Pools and Spa. Enjoy sumptuous dinners matched with fine local wines prepared by executive chef Richard Crawford, formerly of Antoine’s in Auckland. Springs Soak packages include a night’s stay and breakfast, plus two Hanmer Springs Thermal Pool Passes included for $215 per couple. Or for a family break, book a private three-bedroom villa with breakfast and Hanmer Springs Thermal Pools passes for a family of four included for $360 a night, www.heritagehotels.co.nz. LUXURY Something to sing about

NEW ZEALAND

Hanmer Springs in winter.

The Otago Rail Trail.

ADVENTURE Cycle the gold trail

Take in New Zealand’s gold-mining history and get fit at the same time by cycling the Otago Rail Trail, an adventure through 150km of some of New Zealand’s most memorable scenery. The trail thrusts deep into the heart of Central Otago, taking you from Clyde to Middlemarch, near Mosgiel, over the disused tracks of the old Otago rail link, through tunnels and past welcoming southern towns where you’ll find more than 100 country hotels, lodges, self-contained units, B&Bs, motels and

52 www.management.co.nz Management JUNE 2010

campgrounds. The trail is easy cycling for most ages. Allow four days for a leisurely cycle or a week to walk it. The trail is free, but there are organised tours with bikes and accommodation provided. Luxury Trail Tours (www.luxuryrailtrailtours.co.nz) can do corporate groups for $600 a person and can offer a luxury culinary variation for $3286 per person, or Off the Rails’ (www.offtherails.co.nz) four-day tours are $1250 per adult. UNWIND Soak in the springs

Amid the colonnades, Moorish arches and the bell tower of the grand Heritage Hanmer, you could imagine yourself at one of the great European hotels. Its distinctive Spanish mission architecture of the 1930s creates a sense of history and opulence. For more than a century guests have journeyed to the alpine village of Hanmer Springs to ‘take the waters’. Just 90 minutes drive from Christ-

If you love opera, good food and classy interiors, Mollies five star luxury hotel offers all three. The restored villa and its attached suites and spa overlook the stunning Auckland city harbour and offer 13 spacious luxury suites. Each is very individual with its own balcony and unique interior design, with classic furniture, statement beds – and some even have their own grand pianos. Mollies is perfect for romantic vacations, weekend getaways, indulgent honeymoons and corporate functions and meetings. The intimate courtyard gardens, terrace bar and restaurant provide a range of options for inner-city entertaining and relaxing. If you’re lucky, you’ll catch live opera over pre-dinner drinks. Packages include an Opulence package including Champagne, five-course degustation dinner and luxury accommodation for $1350 plus GST a night in a premier suite (maximum four nights), www.mollies.co.nz. M Except where specified, more information from www.annevandyke.com.


NEW ZEALAND’S

MOST REPUTABLE ORGANISATIONS STUDY NZ Management magazine and global consultancy Hay Group are conducting the first nationwide study of organisational reputation in New Zealand. NZ Management magazine and Hay Group would like to thank opinion leaders and senior executives from all around New Zealand for their help on the first Most Reputable Organisations study. Key business leaders received a questionnaire to fill in, nominating the organisations they feel are New Zealand’s most reputable. The results of the study will be compiled by Hay Group’s research team and analysed by our business experts. The winners will be published in NZ Management’s September issue. Hay Group has a long and highly respected history of collecting diagnostic information for business and related market surveys. It conducts Fortune magazine’s annual survey of the World’s Most Admired Companies. Hay Group is the world’s No 1 provider of leadership development programmes and offers research and education services to management. NZ Management is New Zealand’s oldest and most reputable business magazine and has, since 1954, been the officially recognised magazine of the New Zealand Institute of Management Inc.


COMPANY PROFILE

PEOPLE, PASSION & PROJECTS

– the Right Combination for the New Economy ESTABLISHED IN 1991, Project Plus is now a well recognised and successful NZ based professional services company. The company provides a full range of project-based management services based around strategic and business consultancy, training & certification, resource provisioning and the supply of programme/project management software and other products. Physical offices are located in Wellington and London supported by a network of associates covering North America and South East Asia. While the majority of work is in NZ, Project Plus has recently delivered services in Australia, Germany, Malaysia, Philippines, Singapore, Thailand, United Arab Emirates, USA as well as the UK. Project Plus advocates project management as a core competency of any organisation. These skills can easily be transferred to improve ‘business as usual’ performance hence the term ‘project-based management’ to describe the impact of project management on operational management as well as on programmes and projects that lead towards the achievement of strategic goals and objectives. Some of the Project Plus resources are considered global thought-leaders by their peers in the profession. Project Plus consultants, resources and trainers are highly qualified, and maintain up to date knowledge of the leading edge in project, programme and portfolio management techniques and current global best practice. They also have breadth and depth of skills and experience so they are able to share current real-world experience. This combination of knowledge and experience is a point of difference from many other professional service providers. Project Plus’ core business, for almost 20

years, is the provision of strategic consulting services, resource provisioning, training & certification and support products. Their stated values and passion for ‘making a difference’ through project-based management approaches mean that they are easy to do business with and care about the results they achieve. With a very broad client base they tend to focus the consultancy and resource provisioning services on the telecommunications, infrastructure, defence, transport, government (central & local) and the energy and power sectors. Training and certification is offered publicly and in-house across all sectors. Project Plus is recognised internationally for the quality of its project-based management solutions. The company has extremely strong credentials. They are proud of their ISO 9001 certification; a Registered Education Provider status with the global Project Management Institute; a Private Training Establishment registration with the

NZ Qualifications Authority and have an Approved Provider status to the UK Ministry of Defence and NZ Defence Force. Project Plus has positioned itself well to capitalise on opportunities arising from the economic recovery. While its business solutions meet identified international and national standards they work with their clients to ensure that services delivered meet specific outcomes and individual’s needs. According to Group Managing Director Iain Fraser, ‘More and more organisational leaders are turning to advanced approaches on project-based management to better achieve their organisational goals, objectives and plans. This is due to the increasing complexity of initiatives, the need for change, as well as increased pressure on budgets and timelines. Our business models and our people combine to offer a highly desirable and effective set of professional services that allow those organisations achieve better results for less risk.’

PO Box 10-515, Wellington, New Zealand. T: +64 4 495 9100 F: +64 4 495 9109 services@projectplusgroup.com • www.projectplusgroup.com

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JUNE 2010 VOL 05 NUMBER 03

ISSN 1177-5815

ON MANAGEMENT

N NEW ZEALAND IINSTITUTE OF MANAGEMENT M IIN ACTION

KEEPING YOUR BUSINESS SAFE

FROM INTERNET THREATS T

he internet is such a vital component of the way we do business today that keeping your IT systems secure is just as important as locking the doors at night. Even if you don’t understand the technology, as a manager or business owner you need to be aware of what is – and isn’t – happening to the systems that manage your business and simply acknowledging you aren’t IT savvy is often the most sensible place to start. However, while technology obviously plays an important role, good management is vital when it comes to the human factor. The weakest link in any security system is generally the end user, but conversely, a security-conscious workforce provides an extra level of defence, particularly with regard to social networking and the possible security holes this opens. When social networking websites such as Facebook and MySpace first emerged, some businesses viewed them as a distraction from work and banned them. However, social networking has now evolved into a

medium for mass communication and many companies view websites such as Twitter as a valuable marketing channel. Given these new legitimate business uses, a policy banning social networking sites seems counterproductive. However for security reasons, companies still need to monitor how employees interact with them. A recent study found that six out of seven companies don’t have a formal policy on how social networks should be used within their businesses. “The fact that these sites are so user friendly is what makes them dangerous,” says AVG (AU/NZ) marketing manager Lloyd Borrett. “You don’t mind your friends knowing where you live, or when your birthday is, or what your mother’s maiden name is, but if someone hacks into that friend’s account, then they find out that information too. “The temptation is to lock down everything, but where there’s a will there’s a way, and tech-savvy users will look for ways around your roadblocks. Consider a consultative

DEVELOPING A POLICY When considering issues of internet security people are the key areas of vulnerability. Mike Tarjomi of CodeBlue suggests these commonsense strategies: Have a clearly defined computer use and access policy (including social networking) which is sighted, signed and understood by every member of staff – from the CEO and managers through to all part-time or casual staff (whether they currently have computer access or not). The policy should define what is regarded by the employer as acceptable usage and access and what is not – also the penalties for those caught breaching the policy. Get input from management, staff, HR and legal. Talk to employees and explain why a policy is needed – get their buy in as it will be in their interests too. Everyone needs to understand that internet access from work is a privilege and is at the employer’s discretion. Always explain the business reasons for particular policies – for example, it is not a reflection on the present staff but it could be needed in the future, or the high cost of bandwidth, lost productivity, lost time, etc. To ensure everyone understands the policy and its implications in the workplace, it should be written in everyday English, not legalese. It should also be available in other languages if necessary, and available to employees at all times in either physical (paper) or electronic form. Once the policy is written down and agreed to by all employees, then the technological aspects can be implemented by your IT provider eg, use of a firewall to block sites. And finally, if you are not IT-savvy acknowledge this and get advice from an IT security professional.

approach to social networking, with the appropriate safeguards in place, so you can manage the threat rather than drive it underground.” He says that, in addition to developing high-level policies for the use of social networks, there are simple guidelines managers can provide to minimise the risks. Something as simple as creating separate passwords for each site, that are different from log-ins for company systems, can be effective. If you want to keep yourself safe on these sites then you should use a unique user ID and password for each one, or at least a unique password, says Borrett. It also pays to be cautious about who staff interact with and what applications they install. “Your mother advised you to never talk to strangers. The same goes for social networking sites. If you don’t know who they are, don’t talk to them.” For the cyber criminal gaining access to a computer can be as simple as fooling someone into revealing a password. This tactic of exploiting the human aspect of computer use – “social engineering” in the jargon – is extremely pervasive and frequently effective. One of the most popular techniques is phishing, where computer users receive emails purporting to be from banks or other trusted entities where valuable information is protected by passwords. Recipients are encouraged to respond to the mail by clicking a seemingly-legitimate link and entering their login credentials. In a recent AVG survey about social networking habits over half the users questioned had received phishing emails. In addition: • 21% accept contact from members they don’t recognise • 52% let friends access social networks on their machine • 64% click on links offered by community members • 26% share files within social networks • 20% have experienced identity theft

• 47% have been victims of malware infections. Tactics include simply phoning a random extension and tricking whoever answers into revealing their network password by asking seemingly-innocuous questions. An attacker might not be able to gather enough information from one source, but then contacts another person within the same organisation and uses the information from the first to appear credible. The best strategy is to instil in staff, particularly new employees, that handing over any information to someone whose motives are suspect or unknown is not a good idea. There are other obvious do’s and don’ts. Going a year without rolling out security patches and other updates, for example, means your IT systems are a ticking time bomb, and a disturbing number of computers are vulnerable to threats that were patched years ago because software isn’t kept up to date. Make sure you set the highest level of security on laptops employees take home or on the road, to keep their protection solid when they are using home, WiFi or other non-secure internet connections. Aside from email and web access, criminals can gain access to mobile devices via wireless networking technology. Ensure employees know to switch off Bluetooth when it is not needed, to avoid unauthorised access. Today’s smartphones are, to all intents and purposes, miniature laptops. While the phones themselves are rarely hit by viruses or worms (yet), they can help to spread malware when connected to a network and text messages have been used to direct unsuspecting users to infected websites. Employees should not download games or other unnecessary applications onto business-owned phones, just as they should not download such applications onto their work computer. With acknowledgements to AVG (AU/NZ)


Ten reasons to become

A Green Belt NZIM NORTHERN IS ONLINE! I

n a new initiative for 2010 NZIM Northern has been creating a ‘fresh new look’ for the Institute by developing our online web presence through projects including various online and social media platforms. Conscious of the growing trend for effective social media in business, NZIM Northern has responded by launching custom built profiles on global sites such as Twitter and LinkedIn. Through LinkedIn in particular, NZIM has seen the ‘NZIM Northern Networking Group’ grow to almost 200 members in the past six months, with new requests to join every week. These sites are monitored daily and have information posted in real-time regarding upcoming networking events, NZIM Northern public programmes and various topic discussions that allow members to connect and network with each other while posting their own comments and sharing their professional experiences with group members. LinkedIn is a dedicated business networking site that attracts people from all industry sectors across New Zealand and internationally. It is therefore important for NZIM to be part of this community. NZIM Northern also has an active Twitter account that is building in ‘followers’, so search for us online and stay tuned for regular updates and thought-provoking industry quotes. Further extending the NZIM online brand presence, NZIM Northern has recently launched its brand new website. The new site has incorporated the information of the previous site but now offers a cleaner, crisper look that makes for easy navigation and search options. The site has been upgraded to include the new NZIM Learning Community which offers links to such tools as Moodle; the NZIM online course management system and a range of NZIM online assessment tools. Please go to www.nzimnorthern.co.nz to view the new website and find us on LinkedIn and Twitter.

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s a vital part of Lean Six Sigma, continuous improvement is delivered by ‘belts’, who can be full time Black Belts, part time Green Belts or team member Yellow Belts. NZIM Northern is now signing up candidates to become Green Belt trained and certified (nine days in total) following our successful one day Yellow Belt courses where over 50 candidates were certified. Here are some of the reasons why becoming a Green Belt makes sense: 1. Companies are seeking to use Green Belts qualified in Lean Six Sigma to solve problems. 2. Candidates will become process improvement practitioners in eliminating waste and improving flow (lean tools) and reducing defects and process variation (six sigma tools). 3. A Green Belt qualification is internationally recognised. 4. Green Belts can develop from ‘change agents’ to continuous improvement leaders. 5. It’s a pathway course to becoming a Black Belt. 6. The process uses a proven intuitive structure and roadmap called Define, Measure, Analyse, Improve and Control (DMAIC) which belts find logical to follow. 7. Green Belts will see things differently and learn new tools including being able to evaluate customer requirements, sources of variation, root cause and how to sustain project benefits. 8. Learning how to facilitate acceptance of change will become a new life skill. 9. Green Belts will understand how to accelerate

projects and increase team engagement. 10. The training course is fun and interactive with lots of simulation and case studies. Chris Reed is an experienced Master Black Belt and will be delivering the Green Belt course for NZIM having trained over 40 Black Belts and 140 Green Belts. Chris says the Lean Six Sigma Green Belt course is the most modern toolkit you can acquire to resolve problems and streamline your operations in both the service and manufacturing sectors.

Looking for formal recognition and qualification? Contact NZIM Northern

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re you looking for a qualification? Have the experience but no formal recognition? NZIM has developed a suite of programmes and qualifications that provide practical management and leadership skills, alongside theory, to give a solid grounding in the practice of management. With qualifications ranging from Level 3 to Level 6, incorporating National Certificates to Advanced Diplomas, NZIM is sure to have what you are after. These programmes and qualifications are work based and designed for people working in full time roles who are looking for qualifications and accreditation. NZIM Northern ensures that all its qualifications are

accredited and approved by NZQA (with some qualifications pending). For the aspiring new team leader or manager, NZIM Northern has many qualifications to choose from. Spanning from the National Certificate in Business (Level 3), through to the National Certificate in Adult Education and Training (Level 4), these mid-range programmes are for participants wanting to ease their way back into the classroom and into their studies. For the manager wanting more of a challenge, there is the NZIM Diploma in Management Advanced (Level 6). This programme provides an entry-point into advanced qualifications for

middle or senior managers wishing to provide conceptual rigour for their experiences, but not wanting the commitment of full time study or night and weekend classes. Upcoming qualifications in June and July are: the National Certificate in Project Management, Level 4 (June start), the National Certificate in Adult Education & Training, Level 4 (July start), and the NZIM Diploma in Competitive Manufacturing, Level 5 (July start). For more information, please visit our website, www.nzimnorthern.co.nz, or alternatively contact NZIM Northern on 0800 800 694 to speak with one of our Learning and Development Consultants.


COMING UP: DATES FOR YOUR DIARY Wednesday 30 June NZIM/Eagle Technology 2010 Young Executive of the Year breakfast. Tuesday 13 July Lou Gardiner, chief executive of Crime Stoppers, will speak to members at an evening event. Thursday 12 August NZIM Young Professional Network evening event with guest speaker Moana Mackey, Labour Party MP.

Thursday 26 August Jasbindar Singh will present a coaching workshop titled Get your Groove Back. Wednesday 22 September Mark Weldon, chief executive of NZX, will speak to members at an evening event. To register for any of these events please visit www.nzimcentral.co.nz or contact Susan Mckibbin susan_mckibbin@ nzimcentral.co.nz, phone 04 495 8296

Central Courses DIPLOMA OF PROJECT MANAGEMENT WITH DR JIM YOUNG The need for a professional approach to managing projects is a reality, where more and more people in the workplace are responsible for a larger number of projects than ever before, with less time at their disposal. Organisations are, more than ever, relying on project managers who deliver strategic results. On successful completion of the programme, you will be awarded the NZIM Diploma in Project Management (DipPM), which provides formal recognition of your competency. Participants are required to attend eight days and satisfactorily complete four assessments. Dates: Course commences Sept 13 Cost: Members: $7000 + gst Non members: $8000 + gst Jim Young FNZIM is a Project Management Professional who holds a doctoral degree in Business Administration. Jim presents the following NZIM programmes: • Project Management, and Diploma in Project Management • PMP Exam Preparation • Contract and Procurement Management • Risk Management THINK ON YOUR FEET® WITH JIM CENTER Effective verbal communication is a skill that requires a professional approach. To communicate your ideas clearly and concisely you need to be well prepared with a well-structured communiqué. Think on Your Feet introduces the highly successful “capsules of persuasion” concept, 10 plans to structure your ideas and the ability to communicate with clarity, brevity and impact. Think on Your Feet is targeted at middle to senior managers and executives, team leaders and customer-focussed teams. It is targeted at

those who need to be clear, convincing and memorable when speaking to others. It helps improve the communication quality in both impromptu discussion and in formal, prepared communication. Think on Your Feet also assists those who deal with difficult questions or are put on the spot. This programme is for anyone who wants to convince and persuade others and who wants to be seen and acknowledged as a leader. Dates: September 8-9 Cost: Members $1600 + gst Non members: $2000 + gst For more information visit www.nzimcentral.co.nz or phone 0800 373 700 Jim Center has a long and successful background in sales and marketing in the business-to-business marketplace and has latterly been an advisor to many leading corporations on the implementation of world-class bestJim Center practice techniques and processes in customer relationship management. Jim works as an independent consultant in how to implement an intimacy strategy where a company bases its value proposition to its clients on business value rather than on the intrinsic value of its products and services. Jim has been a guest lecturer at the Business School of Auckland University, including running a post-graduate paper on his specialty subject. He represents Think On Your Feet® in the New Zealand marketplace. Think On Your Feet® is a communication skills workshop aimed at improving not just presentations but discussion skills. (www.thinkonyourfeet.com)

2010 The NZIM Business Challenge is a business simulation where teams or individuals from around New Zealand compete in running a fictitious company. This annual competition is now open for registrations. In 2009 over 110 teams from all industry sectors around the country competed in the weekly competition for the $25,000 prize pool. DATES Early-bird Registrations Close: 25th June 2010 Registration Close-off: 23rd July 2010 Competition Begins: 12th August 2010

NZIM and WRCC Women’s Breakfast Series

Get your teams together now and battle it out against some of New Zealand’s best business minds to be the “NZIM Business Challenge Champions”.

For further information or to register call the Business Challenge administrator on 0800 249 242 or visit www.businesschallenge.co.nz

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he Women’s Breakfast Series has been instrumental in showcasing the excellence of women in business. Wellington Zoo chief executive Karen Fifield says she was very honoured to be invited to speak. “I appreciated the opportunity to speak to a wide range of NZIM and Wellington Regional Chamber of Commerce members about how not-for-profit organisations need to operate using business principles and business thinking. “At Wellington Zoo we operate as a cause-related business with the same hard decisions to be made that face all businesses. However we also have a lot of fun in our work at the ‘best little zoo in the world’! “We value our NZIM corporate membership as it provides the networks with the business community that are important to us.”


NZIM SOUTHERN FEATURE EVENT

Positive Start to the Year – Making up for lost time

I

t is heartening to see a very positive start to 2010. Customised/in-company training forward booking contracts are the best in our history with 60% of our budget already achieved. Our flagship, four-week Advanced Management Programme has also attracted 66% more candidates than 2009. It appears that a number of businesses are back on track up-skilling their valued and talented personnel once more. It’s far too early to estimate how the year will finally pan out, but long may these trends continue! Keith Walker, Business Development Manager The photograph above shows Alex Sutherland from Lines of Sight, Wellington and two course participants from Land Information New Zealand in one of NZIM Southern’s well appointed meeting rooms. All rooms have wireless internet, electronic whiteboards, and all the expected educational aids, with state-of-the-art video-conferencing capabilities. We also attract short and long-term room hires for major local member companies. Photographer: Anne Mayhew

Buller Business Forum 2010

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ZIM Southern’s CEO Tom McBrearty and Peter Townsend from the Canterbury Employers’ Chamber of Commerce were guest speakers at the recent Buller Business Forum at the Solid Energy Centre in Westport. The audience, from a diverse range of business, hospitality and service organisations, heard Tom and Peter address issues facing business in New Zealand, with a focus on the West Coast. Also on the West Coast, Tom was guest speaker at a business presentation in Greymouth L to R: organised by Peter Townsend, Development Gary Murphy West Coast where he announced the establishment of a Business Excellence Award. This will be supported by Development West Coast and other sponsors yet to be announced. The aim is to nurture business leadership excellence on the Coast. Tom said having had the privilege of meeting, listening to and visiting some of the businesses around the West Coast it is great to be able to acknowledge the pride, skills and the ability of business people in the region by launching the Award.

MY 1000 DAYS IN CHINA Comments from the Inside by Ian Mc Innes 29 July 2010, 12-2pm Hotel Grand Chancellor, Christchurch

I

an is a new NZIM Southern Fellow, and has spent three years in China as managing director of Climate Solutions for AES Corporation (www. aes.com). Ian will be back in Christchurch late July to visit his family and has agreed to address our members and guests. This will be an exceptional opportunity to hear from his experience ‘on the ground’ in China. To give you an idea of Ian’s executive level in Beijing, he was selected to attend the Great Hall of the People in Beijing last November and to sign a JV on a project as part of the US-China Energy Cooperation agreement and meet the Vice Premier of China Li Keqiang, and Science and Technology Minister Wan Gang. Also present were US Secretary of Energy Steven Chu and US Secretary of Commerce Gary Locke – all part of the President Obama China roadshow. Ian has been working with AES since late 2007 initially as a subject matter specialist, then being appointed as managing director in January 2008. He is a New Zealander, who for 15 years worked in the NZ energy industry (gas and electricity) both as a director (Waipa and Cambridge Electricity) and as a general manager at Southpower and then Orion in Christchurch

from 1993 to 2003. From 2003 to late 2007 he was executive general manager – global operations for Energy Developments. With AES in China his team’s focus has been on developing ventilation air methane (VAM) destruction projects at underground coal mines, while assisting with the development of hydro and wind generation projects. He is chairman of the AES working group undertaking research on carbon capture technology options for the 130 power stations AES operates globally and serves on the AES China Advisory board. He is a Fellow of the NZ Institute of Management and a Member of the NZ Institute of Directors in New Zealand. Ian lives with his wife Judy in Beijing and has two daughters working in London and two sons working in New Zealand. COSTS (inc GST): Luncheon – NZIM Members $65 per person or $480 table of 8; Non-Members and eMembers $85 pp or $640 table of 8. ‘Life in China’ Forum – NZIM Members $65; Non-Members and eMembers $85. Contact/To Register: info@nzimsouthern.co.nz 03 379 2302 or visit www.nzimsouthern.co.nz and click on events.

Ian signing the joint venture (left) and with his wife Judy in Beijing.


NORTHERN All courses shown are in Auckland. For more information phone 0800 800 694 or visit www.nzimnorthern.co.nz

9-10 Sales Management 11 Understanding a Profit & Loss 14-16 Team Leader 2 – Building Effective Teams Effective Business Writing Think On Your Feet Managerial Excellence in Engineering and Construction

JULY

Strategic Thinking Tools Problem Solving & Decision Making Four Quadrant Leadership Effective Use of Time Report Writing Essential Sales Fundamentals Diploma in Health & Safety Team Leader 3 – Operational Management

23 Lean 6 Sigma – Yellow Belt 26-27 Dealing with Difficult Behaviours 26-30 Leadership Development Programme

AUG

4-6 5-6 12-13 16-18 17-18 19-20 19-20 19-20 24-25

1-2 Diploma in Project Management – 1-2 Assertiveness Skills 2 Managing Your Time (previously Effective Use of Time)

5-6 NZIM Cert in Management – Module 5, Intro to Marketing

7-8 Diploma in Frontline Management – Module 1

Strategic Management

28-30 Project Management 1-2 5-6 7-9 12 13-14 15-16 18-31 20-22

JULY

Module 4

JUNE

14 17-18 22-23 24-30

24-25 Operational Management 28-29 Coaching & Mentoring 28-30 Accounting for Non Accountants

Team Leader 1 – Essential Skills Develop Influencing & Motivation Skills Project Risk Management Advanced Four Quadrant Leadership Operational Management Leading Your Organisational Culture Key Account Management Facilitation Skills

7-9 Project Management 8 Creating Emotional Engagement with Customers & Employees

12-13 Optimistic and Resilient Leadership 13-14 Presentation Skills 13-15 Diploma in Project Management – Module 3

14 Facilitation Skills 19-20 Interpersonal Communication Skills 19-21 Team Leader Skills/Essential Skills (National Certificate in Business) 21-22 Introduction to Management 22&30 Speed & Power Reading (2 half days) 26-30 Leadership Development Programme

AUG

2-3 3-6 4 4-5 5-6

Report Writing Train the Trainer Mentoring Skills Leading Virtual teams (2) Diploma in Frontline Management – Module 3 6 Introduction to Management 9 Effective Business Writing 9-10 Budgeting for Non-financial Managers

9-10 NZIM Cert in Management – Module 6, Workplace Communication

Interpersonal Communication Skills

CENTRAL

11 Stress Management 11 Understanding a Profit & Loss Account

All courses shown are in Wellington unless otherwise indicated. For more information phone 0800 373 700 or visit www.nzimcentral.co.nz

12-13 (3) Diploma in Frontline Management – Module 2

SOUTHERN

JUNE

14 Memory and Mind Mapping 14-15 Understanding Public Sector Finance 14-16 Team Leader Skills – Building Effective

Teams 15 Customer Service in the Public Sector 17-18 Performance Management 22-23 Contract and Procurement Management

For more information phone 03 379 2302 (Christchurch & Queenstown), 03 477 9277 (Dunedin) or 03 218 7451 (Invercargill) or visit www.managementsouth.co.nz or.

CHRISTCHURCH JUNE

16 Effective Delegation NEW 21-23 Team Leader – The Essential Skills

21-23 Four Quadrant Leadership with Wilf Jarvis

24-25 Four Quadrant Leadership Trust 27 Advanced Management Programme (starts)

28-29 Negotiation Skills

JULY

1 5-7 5-6 7 10-17 12-14 14-16 16

19 19-21 20-21 26-28

AUG

2-3 4-5 4-6 9-11

Professional Business Ethics NEW Team Leader – Building Effective Teams Strategic Planning Effective Use of Time ESCO – The Discovery ABCs of Win-Win Relationships Team Leader – The Essential Skills Project Management for Administrators NEW Project Management Diploma (starts) Introduction to Management Accounting for Non Accountants – Stage I Management in Practice

Coaching for Performance Excellence Practical People Skills Four Quadrant Leadership Stage 2 Four Quadrant Leadership

QUEENSTOWN JULY

23 Drug and Alcohol Testing NEW

AUG

11 Effective Business Writing

DUNEDIN JUNE

22-23 Accounting for Non Accountants – Stage 1

JULY

2 Audit Training 19 Project Management for Administrators

20 The Art of Minute Taking

INVERCARGILL JUNE

14-15 Accounting for Non Accountants –

16 17-18 21 28-30

Stage 1 Basic Budgeting NEW Negotiation Skills Effective Use of Time Introduction to Management

JULY

1 Audit Training 22 Drug and Alcohol Testing NEW

AUG

4-6 Four Quadrant Leadership 9-10 Presentation Skills

NZIM DIPLOMA IN HEALTH AND SAFETY MANAGEMENT NZQA Approved Level 6 Diploma Qualification (Dip HSM)

Auckland 18th July – 31st July (Residential Component) Developed in New Zealand , based on” global” health and safety and “quality” management practices. The programme includes what business needs to do, to manage Health and Safety and then provides the “how to do it” process for participants to use on the job. We are the only diploma programme in New Zealand that has a “Graduate Skills Test”. Contact Victoria Purdie for more information and testimonial contacts at victoria_purdie@nzim.co.nz or Phone 473 0470


LEADERS BUILDING LEADERS Our aim is to build management capability through, Research, Learning, and Recognition. 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. • Identify leading management role models and provide awards that recognise the career and educational achievements of managers. NATIONAL BOARD Phillip Meyer FNZIM (Chairman) Brian Soutar AFNZIM Lloyd Davies FNZIM Cheryl Doig FNZIM John Sandford FNZIM Gary Sturgess Life FNZIM Lynda Carroll AFNZIM OFFICES National Office Acting CEO Phillip Meyer PO Box 67, Wellington 6140 Ph 0-4-473 0470, Fax 0-4-473 0479 Email national_office@nzim.co nz National website www.nzim.co.nz Northern President John Sandford FNZIM CEO Kevin Gaunt FNZIM, FAIM PO Box 6600, Wellesley St, Auckland 1141 Ph 0-9-303 9100, Fax 0-9-303 9109 Email kevin_gaunt@nzimnorthern.co.nz Website www.nzimnorthern.co.nz Central President Phillip Meyer FNZIM CEO Karin Callaghan FNZIM FIPAA PO Box 11781, Wellington 6142 Ph 0-4-495 8300, Fax 0-4-495 8301 Email karin_callaghan@nzimcentral.co.nz Website www.nzimcentral.co.nz Southern President Brian Soutar AFNZIM Acting CEO Tom McBrearty AFNZIM PO Box 13044, Christchurch 8141 Ph 0-3-379 2302, Fax 0-3-366 7069 Email tom@nzimsouthern.co.nz Website www.nzimsouthern.co.nz

MEM BER CO M M EN T:

Mark Woodard Born and raised in America, NZIM Associate Fellow and Central board member Mark Woodard immigrated to New Zealand five years ago from California. With MBA majors in finance and health care management, early experience on Wall Street developed his technical expertise in using financial tools to accomplish strategic goals, but it was his formative experiences as an advanced paramedic that shaped his interest and expertise in health care. As a three-time health services chief executive and change manager for public, private and start-up organisations, Mark has developed a track record of specialising in problems others would see as belonging in the ‘too hard’ basket. His first role in New Zealand was as chief executive for Presbyterian Support Central, followed by a fixed term as group manager, National Ambulance Sector Office, a joint role reporting to the executive team of both the ACC and the Ministry of Health. His current role sees Mark developing long term “models of care” for the New Zealand’s aged residential care sector. As project manager he is ultimately responsible to all 21 district health boards (DHBs) and 700+ aged residential care providers. “The aim is to review the sector, including the cost to provide service and supply and demand considerations, knowing there are a lot of elderly coming down the track... what are the alternate methods we might use to provide service to meet those demands, and the workforce considerations. This is the first time in recent memory there has been a joint effort by the Crown and providers to tackle this list of issues. “All the projects I’ve been involved in in New Zealand have been quite involved and complex and share the characteristic of very complex constituency relationships and issues that have been around for some time that haven’t really been dealt to. All through these projects we’re making progress on putting the past in its proper place and moving forward, with constituents thinking in a different way about how we might do things. “My learning on Wall Street was that it was as much about negotiation as the substance of the deal – finding the middle

ground that makes sense. Almost always in my experience this is not about finding halfway in between but finding the third way. That’s why having a grounding in the substance of the negotiation is important, but so is understanding the parties’ interests that can take you to that third solution which is better for everyone.” Mark says resourcefulness is a “remarkable strength” of Kiwi managers. “The No. 8 wire is not only a part of our collective history and self-perception but it is actually about the way we go about solving problems. When Kiwi managers access that No. 8 wire mentality when dealing with difficult interpersonal issues, they can resolve some very difficult things. That, together with the community that exists within New Zealand means that there is a small number of people that need to be convinced that the new creative solution is right on – quite substantial change can happen very quickly here. That’s a huge strategic advantage for New Zealand business. “The easiest, although not necessarily best solution to any problem is to say if we had more money we could solve this problem. But if you don’t have more money, and this is the environment we’re in at the moment, then we have to look at how we accomplish our goals within the existing budget constraint or the existing available resource, and that opens up the opportunity to be creative. Before any cost cutting begins, you have to ask the question ‘to what end?’ That is the most powerful strategic question in business, and the answer is how we best support the people who use our service, which is the best way to provide for long-term viability. If you can answer the question ‘to what end?’ with subtlety, nuance and intelligence, the answer is often not just a simple slash and burn.” Mark’s involvement with NZIM was not only born of recognition that he needed to establish local networks quickly, it has also been a manifestation of his commitment to his adopted country. “The first, most important decision that someone who moves here from overseas has to make is, am I a tourist or a

citizen? I decided very early on that I was committed to being here, that was one reason why I got NZ citizenship at the first opportunity. This commitment is not just saying in my heart this is what I want to do, what I want to be; it’s about taking action that reflects a commitment to local community, and NZIM is part of that, absolutely. “Also, one of the main issues for immigrants is how to break in and establish credibility, and the Institute is one very good way of doing just that. No-one really knows or cares about my academic background or what I’ve done in the US, but the fact that I’m an Associate Fellow of NZIM has local recognition value – street cred, if you like. Plus there are so many good things in the community that one can do – I’m thrilled when I get the opportunity to do something that lines up with my passion. That’s every person’s challenge and when we find a way that lines up our interests, our passions and our skills then we’re really set up for doing extraordinary things. “This is one of the advantages of NZIM that I’ve come to enjoy – that it provides a tool for people who wish to try and work on their skill base to help them line up with what they would like to do and position themselves more effectively. American business culture has a strong emphasis on graduate education that’s nowhere near as prevalent here and I have lots of admiration for folks who at night and off their own bat are progressing their own education. For example, the Diplomas in Front Line Management and in Project Management are extraordinary programmes, and people are making huge commitments – I think that’s extraordinary, really worthy of acknowledgement and celebration.”


EXEC TECH

THE

mobile

OFFICE

Pauline Herbst reviews notebooks and smartphones that make international business on the go just that bit easier.

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espite the easy accessibility of virtual conference calls, flying long haul is still a reality and keeping up with daily emails and other business on the run is vital. A lightweight, robust notebook with a long battery life is essential for travellers, and a user-friendly smartphone comes into its own. To really test how they’d cope, these products were put through the customs wringer, flying to two destinations in the US, as well as a few South Island jaunts. FLYING HIGH

NZ Management got its hands on Sony’s VPCZ116GGB from the Vaio Z series just as it was launched at the company’s Carnival road show earlier this year. Selling at $3399, it’s billed as “the choice of uncompromising executives” and certainly would look good in any boardroom. Like most of Sony’s products, it is sleek and shiny, with a kick; it’s made of milled

Vaio’s sleek and shiny Z

aluminium plate and hybrid carbon. At 13.1 inches and weighing 1.4kg, the Z series is small enough to be quite portable while flying without making you feel like you’re tapping out the equivalent of the Oxford Dictionary on a postage stamp. Unlike earlier manifestations of the ‘chiclet keyboard’, the Sony version is comfortable to use and easy to type on, with a generous margin between keys. It also lights up blue in the dark, which is useful for planes. This feature obviously uses more power, but even doing this the battery lasted for around five hours. The ambient light sensor also controls the LCD display, although as the battery wanes you feel you need to keep upping the brightness incrementally. This is due to the intelligent auto setting, which selects a speed or stamina mode, depending on how you’re using the notebook. An Intel Core i5-540M 2.53 GHz

processor (with Turbo Boost up to 3.06 GHz) makes for a speedier experience and more efficient multitasking environment – the VPCZ116GGB had no problem handling several programmes simultaneously: Word, Chrome, Photoshop, Messenger Live, Outlook and Skype. Sony’s displays have always been bright and clear and that is certainly the case with the Z series’ full HD screen. The increased workspace, coupled with the Windows 7 operating system means you can easily view several documents simultaneously. Multimedia capability has also been one of Sony’s signature features (perhaps a nod to the Walkman) and embedded noise cancellation technology through supplied headphones and a one-push Media Gallery activation button continues this trend. Comms are made easy with an integrated webcam and Bluetooth. You can also get the slightly more expensive VPCZ117GGX, which is faster and even more efficient with multitasking thanks to its Intel Core i7 processor. SPECS • Intel Core i5-540M Processor 2.53 GHz with Turbo Boost up to 3.06 GHz • SSD in RAID 0: 128 GB (64 GB x 2, Serial ATA) • NVIDIA GeForce GT 330M GPU for smoothly rendered video and graphics • Automatically controls Gfx mode: Dynamic Hybrid Graphics System • 13.1” wide (WXGA++: 1600 x 900); VAIO Display Premium, LED backlight. JUNE 2010 Management www.management.co.nz 61


The entry level Toshiba T110D

FUNCTIONAL AND FRIENDLY

When travelling, high-spec equipment like the Z series can be useful but sometimes you just want a $999, functional entry-level system. Like the Toshiba T110D. Part of the company’s new Satellite series, this 11.6-inch notebook looks the part with a gloss black finish with grey diamond detailing to give it a quasi hounds-tooth effect. Toshiba calls it ‘twister black’. A tapered chassis looks odd at first glance, but is a feature designed to make it easier to carry. It is light at 1.76kg, yet feels quite solid, both important considerations when travelling. Battery life is good, clocking in at up to five hours, not enough for an entire flight but it certainly will get you most of the way there. Power plans include balanced and eco, with the eco mode obviously reducing screen brightness to conserve power. Management used between 10 and 13W according to its meter. This is a bit of a catch-22 on flights, as you’ll want the eco mode for longer battery life, but a brighter screen for the low ambient light on board. For a notebook coming in at the under $1000 mark (just) its 2GB of memory performs well enough to run most applications you’ll need smoothly; a web browser, Word (or OpenOffice), Skype and email. Memory can be upgraded to 8GB if required. An integrated webcam allows you to keep in touch with family and the occasional face-to-face with the office. The only things you’ll lack are an optical disc drive and HD screen although with three USB ports, an HDMI, VGA port and SD card slot it can be argued you don’t need these. 62 www.management.co.nz Management JUNE 2010

The standard definition 1366 x 768 widescreen is bright and clear. SPECS • AMD Athlon Neo MV-40 processor (1.6GHz, HyperTransport3: up to 1.6 (GT/sec), 512kb L2 Cache) • ATI Radeon HD 3200 (256MB 895MB dynamically allocated shared graphics memory) to handle graphics • 3D hard drive shock sensor • Kensington cable lock slot for optional theft protection devices NOKIA E72

The T110D is portable, but for travelling light nothing beats a 128g smartphone. The Nokia E72 has been around for a while but still ticks the main boxes; messaging, application and media support. It also looks good with a matt black finish with silver and white accents. Sometimes accessing your SIM card in a smartphone is a more technical exercise than using the phone itself, but the E72’s silver etched back panel levers off quickly and gives some traction on smooth surfaces. According to Nokia research “49 percent of respondents prioritise their partners’ [emails] ahead of their bosses”. Due to the E72’s preloaded Nokia Messaging, email set-up is easy, even for the most reticent, and once your email accounts have been set up, just as easy to navigate. You can also set up instant messaging on your home screen to access your Windows Live Messenger, Yahoo or Ovi Chat accounts. A high-speed USB port (neatly covered) and five-megapixel camera are improvements on its predecessor, with the latter capturing both images and video in VGA quality. In addition to the camera on the back of the phone, a VGA front camera is useful for video calling.

Keeping in touch with the office is imperative when travelling on business and the E72 facilitates this further with a built-in mobile VPN to access intranets conveniently and one-touch modem access. Quickoffice 5.3 provides support for Office 2007 so that you can read documents and presentations if pressed. This is usually a challenging exercise on small mobile screens. Nokia makes it a little easier with a “font magnifier” setting. Extras include a GPS with compass and Ovi Maps. SPECS • 250MB internal memory • HSDPA up to 10.2Mbits • HSUPA up to 2Mbits • WLAN (IEEE 802.11b/g) • EGPRS multislot class 32 class A • A2DP stereo audio enhanced data rates (EDR) • HW accelerated data encryption and remote lock and data wipe. M

The Nokia E72 smart phone


PERSONAL DEVELOPMENT

Create the CHANGE you want Focusing on the problem can keep you trapped in the same behaviour patterns, says change specialist Jhanna Culver. To change, you need to change your focus… and act.

I

f you want to make changes in your business or in your personal life, you have to think about the change you want in the future, rather than the problem at hand (the past), says Jhanna Culver. “Neurologically, what you give your attention to, grows. So what your brain focuses on is exactly what will preoccupy your mind. Our default is generally to return to our familiar, deepened pathways. Anything new won’t last long unless you make that your focus.” Culver’s convinced that looking to the past is unnecessary for otherwise healthy adults to move forward – and it can be destructive. “If you want to make change, you need to focus on the present and the future. Work out where you want to go and where you are now.” She says meaningful change comes

from within. “I am not the expert in anyone’s life. You have to come up with what works for you. The potential to reach your goals is greater when it comes from you. You have to have the buy-in.” In her early work as a social worker, Culver says she found that change was always under threat with at-risk adults, but that it was easier when they were engaged. That works for managers and staff too. She says that although managers are seen as the expert within a department or team, the theory can still be directly applied to their staff. Get your staff’s buy-in and allow them to identify what they need or want to change. The potential for them to achieve significantly increases. “In general, the key is to know where you want to go and to be very specific. Change must be measurable: how will you

EXPERT PROFILE: JHANNA CULVER, newheadspace Jhanna Culver is a change specialist with a diverse background in management, movement therapy, psychology, and social work. She says her goal is to help clients make positive and sustainable changes both in their business and personal lives. Born in Russia, Culver emigrated to Australia at the age of five and grew up in Sydney before spending 15 years studying and working around the world, in the US, the UK, Israel and Bali. Now she runs her coaching business in Aucklland. Her experience as a social worker helped her understand that change for dysfunctional clients needed to be different to that for otherwise healthy adults. She realised that exploring the past does not necessarily bring sustainable, measurable or tangible change. In her last role as manager of a state-of-the-art aged care residential facility, she moved into leadership training and decided to make coaching her career. “I was coming from a therapeutic background and what appealed to me with coaching was that it was pragmatic and realistic. Both the client and I could see immediate, tangible and sustainable results. This continues to excite me every day.” Her business, newheadspace, contracts to businesses and works with individuals on improving patterns of thought and helping effect change. www.newheadspace.com

know when you are there? And achievement breeds achievement.” Culver says the coaching she does is based on the latest neuroscience research and aimed at improving people’s thinking. Although the change created is significant, it can be broken into easy steps to take you where you want to be. 1. Know what you want and be as clear as possible. It may be a new area – or rediscovering a success you experienced in the past. 2. Define what it is you want. What is ‘a balanced life’ for you? What does a ‘successful business’ entail? 3. Get a buddy or support person. Use someone you know believes in you, someone with whom you can share your challenges and successes openly. Set up a contract with that person identifying what it is you want from them. Be very clear with the contract. It’s easy to set a vague goal, but much harder to achieve it. “If your goal is vague, there’s less chance of you reaching your goal – so, the more specific your goal, the greater the chance of achieving it.” 4. Commit to two or three actions with your buddy a week. Set a timeline and be specific: “I want this achieved within three weeks. Every week, I will do a, b and c.” 5. Act. The key is to be in action and to keep moving forward, even when your old patterns of behaviour come up against you. 6. Make it fun. Look for the joy in working towards achieving your goal or change. This supports your motivation and keeps things light. 7. Reward yourself. You need to have reward in mind when you begin. If you are getting fit, plan to reward yourself after each walk with a coffee. If you are setting up a new business initiative, take a holiday when you reach your goal. M JUNE 2010 Management www.management.co.nz 63


ADVICE TOP TIPS

Five workplace rules that are made to be bent by Megan Alexander

T

here are pieces of workplace advice – be on time to work and avoid gossiping about your boss or colleagues, for example – that are never contested. Other rules, however, are more flexible. In fact, you may even benefit from breaking, or at least bending, them. In my business I’ve found these rules are up for question.

1

THE MORE HOURS YOU PUT IN, THE FURTHER YOU’LL GO It seems logical that if you spend more time working, you’ll enjoy greater career success. But this isn’t always the case. Logging more time doesn’t necessarily mean you’re more productive. In fact, spending an excessive amount of time in the office could signal you’re not working efficiently. Are your long hours the result of poor organisation or focusing on low-priority tasks? Also making a habit of extra hours heightens the chance of burnout, leading to stress, low morale and even health problems. If you’re feeling overwhelmed, speak to your boss about delegating some of your duties.

2

TAKE ON NEW ASSIGNMENTS WHENEVER YOU CAN Volunteering for additional projects is a great way of building new skills. But biting off more than you can chew can lead to burnout. In addition, volunteering for projects that you are unable or unqualified to handle could set you back. In short, never over promise and under deliver.

3

WHEN YOU’RE OFFERED A PROMOTION, TAKE IT During your annual performance review, your boss tells you she or he’d like to promote you. Although a more impressive title and better pay sound appealing, first consider the ramifications of moving

up the ranks. Do the responsibilities interest you? If you assume a management-level role, for example, you may not be able to do as much of the hands-on work you enjoy. Also consider your work/life balance. If the new position requires longer hours or frequent travel, are you willing to adjust your personal life and family?

4

FOCUS ON IMPRESSING THOSE ABOVE YOU Your manager undoubtedly has the greatest impact on your career success. But don’t underestimate how important your relationships with peers can be. When faced with a tight deadline on an important project, help from a colleague could mean the difference between successfully completing the work or not. And the personal assistant in another department could grant you access to a high-level manager when you most need it. So foster relationships at all levels of the organisation.

5

DON’T BE THE OFFICE CHATTERBOX You certainly don’t want a reputation as the office gossip, but spending a little time each day connecting with colleagues on a personal level is often beneficial. Still, if your little chats are interfering with your productivity or interrupting those around you, cut back on them.

6

DON’T BE THE LIFE AND SOUL OF THE PARTY. You don’t want to disgrace yourself or have your staff lose respect for you, but there are benefits from enjoying a social environment as well as a working relationship with your staff. It helps them to understand you as a person, rather than having your relationship very employment-focused. M Megan Alexander is general manager of specialised staffing services company Robert Half New Zealand.

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Manukau On The Move Phone 09 274 6904 www.manukauleisure.co.nz

64 www.management.co.nz Management JUNE 2010


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and when it does you want QBE on your side Imagine: torrential rain leading to landslides. People losing their homes. They’ll look to find someone to blame and to pay. What follows will change the financial landscape for a number of businesses. The legal onslaught will engulf not only the builders and sub-contractors who have worked on the properties, but also the developers, engineers, surveyors, architects, and local authorities – in fact anyone who had provided professional advice or services. Would your business survive the risks of the real disaster – its after effects? QBE has more than 200 different liability and property insurance policies working to help protect New Zealand businesses. So when it hits the fan, you want QBE on your side. Talk to your insurance broker today about QBE Insurance. www.qbe.co.nz

QBE-019 MGMT Rapport Ls


Management June 2010