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Management, Innovation, sustainability, leadership, internal communications, research and development, Xero, Rod Drury, EEO Trust, workplace awards, social media, professional development
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9 421902 251030
NOVEMBER 2010 $7.10INCL GST
In this issue: The Director p59 • Professional Development Guide p39
management.co.nz
T O P 2 O O
Deloitte/ManagementMagazine
A Bold Spirit
PAGE 18
IBM’s NZ’s managing director
on what we need to lead the world
Innovation nation
Xero to heroRod Drury –wired to the world p26
Celebrating workplace diversityEEO Trust Awards p30
Old dogs & new tricksAgeism in the boardroom p59
IBM’s Jennifer Moxon.
Change is inevitable. How you respond will be the difference between standing out or disappearing into the background. If you can’t afford to be a spectator now is the time to take the lead and make an impact. Talk to us for some inspiration.
www.deloitte.co.nz
Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee, and its network of member fi rms, each of which is a legally separate and independent entity. Please see www.deloitte.com/nz/about for a detailed description of the legal structure of Deloitte Touche Tohmatsu Limited and its member fi rms.
© 2010 Deloitte. A member of Deloitte Touche Tohmatsu Limited.
T O P 2 O O
Deloitte/ManagementMagazine
A Bold Spirit
MASTER ORSPECTATOR?
WELCOME www.management.co.nz
A MEDIAWEB MAGAZINE
EDITOR Brenda Ward
09-575 8830, [email protected]
CONTRIBUTING EDITOR Reg Birchfi eld
CONTRIBUTORS
Karyn Arkell, Colin James, Mark Brown, Richard
Cathie, Kelvin Hussey, Ruth Le Pla, Iain McCormick,
Judy McGregor, Peter Nielson, Tony Street, Peter Tynan
ADVERTISING MANAGER Clara Iqbal
09-271 3711, 021-930 887,
DESIGNER Rachel Walker
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Vol 57 No 10 • ISSN 1174-5339 (Print), 1179-3910 (Online)
So – did an accident of
geography make Kiwis
inventive, innovative problem-
solvers, able to take a piece of
number eight wire and turn it into a
high-tech electric fence?
Or are we dreamers to think that
we can come up with world-beating
ideas from these remote and sparsely
populated islands at the bottom of the
world? Are we special? Or have we just
been lucky so far?
I like Bob van de Kuilen’s suggestion
in this magazine in June 2008 (“Kiwi
Competitiveness in the Global
Economy”) that Bert Munro might
have had the world’s fastest Indian,
but he certainly didn’t have the world’s
best team preparing him for his speed
record – he failed to get a permit to
race his motorbike on the salt fl ats
and very nearly had to come home
without racing at all.
Perhaps we are a nation of Bert
Munros, appearing without warning
in foreign countries with a great idea,
a bright smile and our famous Kiwi
optimism. She’ll be right. Katherine
Corich, founder of international
consultancy Sysdoc, who appears in
our cover story certainly thinks so. She
told me earlier this year: “It’s not enough
to go in and say we’re new, we’re
innovative, we’re keen, you should love
us, because that doesn’t have context
in the problems of the host nation.”
She says companies need to integrate
within the social context of the country,
fi nd out their issues and prove the new
service or new technology will be of
relevance to them.
IBM New Zealand’s managing
director Jennifer Moxon, who
appears on our cover this month
says: “We will need to address some
systemic issues if we are to maintain
our reputation as an innovator – and
keep enjoying the economic and
social benefits that result.”
We may have the great ideas, but
do we have the drive to achieve
the successes of bigger and more
prosperous nations? And, argues
(asks?) American Roy Stager-Jacques,
do we want the US lifestyle as our
reward for changing our mindset from
being one of the world’s little battlers
to becoming one of ambition, long
hours and exhausting schedules?
Finally, do we have the
infrastructure to achieve at a world-
class level? Do we have the road and
rail links ready to deliver our goods?
Do we arrive overseas prepared and
ready to sell?
If we don’t, our cover story suggests,
we may just be kidding ourselves. It
will take more than a piece of number
eight wire to take on the world.
NOVEMBER 2010 | management.co.nz | 1
Number 8 wired
T O P 2 O O
Deloitte/ManagementMagazine
A Bold Spirit Brenda Ward, editor
contents
Could Kiwis’ have-a-go mindset be
the very thing that holds us back
from being a world-class centre of
innovation and thinking? Ruth Le Pla
analyses why New Zealand is falling
behind in the innovation stakes.
Innovation nation
IBM NZ’s managing director on what we
need to lead the world
18 COVER STORY
THE TOP 200 CAMPAIGN
This year’s Deloitte/
Management Top
200 Companies
campaign,‘Understanding
the New World’, examines
six major contemporary
issues and opportunities
for business. This month,
how New Zealand can be
a world-class centre of
innovation.
Und
erst
andi
ng th
e ne
w w
orld
T O P 2 O O
Deloitte/ManagementMagazine
A Bold Spirit
1 EDITOR’S LETTER
4 INBOX: News and views
10 AS I SEE IT: Kelvin Hussey, CallPlus
11 SUSTAINABILITY: The road to sustainability. Peter Neilson
14 NZIM: Now is the time for leadership. Reg Birchfi eld
55 FOCUS
56 EXECUTIVE DEVELOPMENT
57 EXECS ON THE MOVE
OPINION
12 POLITICS: From the edge of the world. Colin James
13 THOUGHT LEADER: The way we work. Judy McGregor
ADVICE
52 EXEC HEALTH: A look under the hood. Peter Tynan
54 BOOKCASE: The CEO’s Boss: Tough Love in the Boardroom; Preparing for Take-off. Brenda Ward
58 EXEC 10 TIPS: Better internal communications. Karyn Arkell
features
november 2010 • Vol 57 No 10
24 Smart Company: the graSS iS greener
From a complex in palmerston north, Fonterra’s little-known research and development division is creating products that are the envy of the world, says Brenda Ward.
26 FaCe to FaCe: rod drury – Wired to the World
technology innovator. Ceo of Xero. director of nZX. part of the pacific Fibre project. husband and father. NZ Management finds that rod drury does everything ‘automagically’.
30 eeo truSt aWardS: get liFe into Work
Business, staff and families all benefit from workplace diversity initiatives, says eeo trust Ceo philippa reed. Brenda Ward spoke to her about new Zealand’s top workplace performers.
34 eXporting: neW FrontierS in the gulF
new Zealand companies need to look at the united arab emirates as an export destination, say richard Cathie and mark Brown.
36 eXeC driver: leaSe BuSineSS Booming
as trading conditions remain unstable, more companies are turning to car leases – and they’re buying smaller cars.
38 voiCe: perSonal SpaCe invaderS
Social media may start as an in-house social chat room, but it can turn into an amazing corporate tool, says deloitte australia’s louise denver.
39 proFeSSional development: training in the real World
professional development courses are now available in subjects as varied as winning at office politics, how to be an entrepreneur, or overcoming a phobia of public speaking.
pluS: nZ management’S Bi-annual proFeSSional development guide
59 old dogS and neW triCkS
the upsides of ageing – ‘from warrior to wisdom’ – can give older boards distinct advantages, iain mcCormick suggests.
63 CapeX SCrutiny CruCial part oF good governanCe
Systemised capex appraisal is vital to creating shareholder wealth, argues specialist consultant in the field tony Street.
24
26
30
39
4 | management.co.nz | NOVEMBER 2010
M INBOX
New Zealand businesses are struggling to fi nd and nurture
effective future leaders, despite increasingly investing in leadership development, says a new study.
The IBM Working Beyond Borders Study of senior human resources staff also found only one in four New Zealand and Australian executives believed their organisations excelled in leadership development.
And many companies are considering more use of outsourcing, part-timers and even bringing back retired staff to increase staff fl exibility.
The study of 61 countries worldwide, including 31 respondents from New Zealand, concluded that organisations recognise the need for effective future leadership and are working to close the gap.
It found that even during the height of the global recession,
a surprising 45 percent of New Zealand companies surveyed still increased their investment in leadership development. But only a quarter considered their organisations adept at developing future leaders.
New Zealand leader of the study, Ross Pearce, says: “Organisations are struggling to fi nd and nurture effective future leaders in Australia and New Zealand, and this is largely due to the fact that many of our organisations lack the infrastructure, such as common skills taxonomy and workforce analytics, to make fact-based decisions regarding workforce allocation.
“With a lack of insight into what skills and capabilities they have at their disposal, organisations can make poor and often reactionary decisions.”
Where are the leaders?
One of the participants was Wayne Peat, group HR director for Telecom. “Since June 2009, we have invested signifi cantly in leadership development as a critical enabler to
help align our business and people transformation programme.
“We challenged ourselves to fi nd new and dynamic ways to nurture and build effective leaders and are now implementing a robust programme dedicated to ensuring consistent, competency-based leadership for all our people.”
The study revealed that 11 percent of organisations in Australia and New Zealand plan to increase their headcount to drive operational effi ciency. Over the next three years, over half of chief human resources offi cers in Australia and New Zealand plan to increase outsourcing, the use of part-time workers – and some even plan to bring back retired employees to inject greater fl exibility into their workforces.
For the full study report, see www.ibm.com/chrostudy. M
IBM’s Ross Pearce.
New workplace lawsManagers need to be aware of two
changes to employment law that may affect their workplaces.
The Employment Relations (Rest Breaks and Meal Breaks) Amendment Bill relaxes the provisions on rest and meal breaks for employees, while the Employment Relations (Workers’ Secret Ballot for Strikes) Amendment Bill requires unions to hold a secret ballot of their members before taking strike action, says Simpson Grierson’s employment division.
In October last year the Employment Relations (Rest Breaks and Meal Breaks) Amendment Bill was introduced to Parliament.
The Bill proposes signifi cant changes to the existing rest and meal breaks régime, says Simpson Grierson. It removes the legislated minimums for rest and meal breaks and replaces them with a requirement for employers to either provide meal breaks and paid rest breaks, or take compensatory measures.
These changes aim to ease the current requirements on the timing, number and duration of breaks, to make the criteria for a
break more fl exible.Key features of the Bill include:
• Employees are still entitled to rest and meal breaks;• The entitlement can be subject to certain restrictions, but only if the restrictions are reasonable and necessary given the nature of the employee’s work;• There are no default timings for rest and meal breaks – these must be agreed between the employee and employer;• Where there is no agreement, the employer can specify the times and durations of the breaks, but these must be reasonable;• An employer is not required to provide rest and meal breaks where the employer and employee agree that the employee will be provided with compensatory measures (defi ned in the Bill as including measures such as a later start time, earlier fi nish time, or time off in lieu).
The Select Committee has recommended the Bill be passed into law, with the Committee’s main amendments being that the entitlement to rest and meal breaks can be subject to
certain restrictions if they are reasonable and necessary, given the nature of the employee’s work or if they are reasonable and agreed to by the employer and employee; and where compensatory measures are provided instead of rest or meal breaks, they must be “reasonable”. The Bill will now be referred back to the House for its second reading.
The Select Committee also recommended passing the Employment Relations (Workers’ Secret Ballot for Strikes) Amendment Bill, which would require unions to hold a secret ballot before taking strike action. Secret ballots should be a means for individual union members to have their say on whether they want to go ahead with proposed strike action.
The Select Committee has amended the Bill to clarify that the question to be voted on in a secret ballot is whether the members of the union are in favour of the strike; and unions will have an obligation to inform their members of the outcome of the secret ballot as soon as reasonably practicable after the vote has taken place. M
NOVEMBER 2010 | management.co.nz | 5
Manage your TaxiSpend with Innovation
and Technology tel: 09 306 1790email: [email protected]
Douglas Hudson, CEO of Fullers Ferries, Auckland.There are lots of oldies on my list, but some new ones too. I’m actually more likely to listen to music in my car.
1. UB40: Red, Red Wine. This is the fi rst one that comes to mind.
2. Lily Allen: Not Fair. This one really shouldn’t be on the list for a man of my age... (laughs).
3. Dire Straits: Brothers in Arms.
4. Kings of Leon: Use Somebody. That’s off the 2008 Only By the Night album. M
On my iPod
Douglas Hudson.
The economic downturn has created a growing sustainability
divide, separating New Zealand businesses which “get” sustainability from those which see it as “nice to do”, says University of Waikato Management School’s Dr Eva Collins.
The university talked to more than 700 fi rms in the third in a series of surveys, making it one of the fi rst studies in the world to track the impact of recession on sustainability practices with longitudinal data.
The previous surveys, conducted in 2003 and 2006, showed increasing uptake of sustainability practices, but the 2010 survey reveals a general decline, says Collins.
“Firm size was one of the best predictors of uptake of environmental practices,” says Collins. “In a recession, small businesses are hardest hit by the
upfront costs of sustainability practices, and our survey shows they cut back the most.”
However, a small but signifi cant group of fi rms have actually increased their uptake of environmental sustainability practices, such as recycling, reducing energy and water use, and environmental awareness.
“The recession shook out fi rms which had sustainability as an ‘add-on’,” says Collins. “For those fi rms, sustainability wasn’t aligned with their core business, so when things got tough they let it go.” M
Waikato University has run the sustainability survey three times.
Dr Eva Collins.
Green divide
6 | management.co.nz | NOVEMBER 2010
M INBOX
Executive PulseUsing public private partnerships (PPPs) to fund local government infrastructure projects
faster is supported by 58.6% of senior business decision makers.Some 47.8% of the public also support this fi nancing option, the most popular when ranked with council bonds, a
dedicated fuel tax and rate rises.
Which of the following would you support to raise fi nance to bring forward local government infrastructure projects?
The deep end Open door for softwareOpen source software is
now fi rmly embedded in the business world, says Clare Coulson of the New Zealand Open Source Society, and she says results for this year’s awards prove that.
Coulson says the largest number of entries for this year’s NZ Open Source Awards 2010 was in the Open Source Use in Business category, proving the growing popularity of free and open source software among company owners and managers.
Open source software offers the source code (the “blueprints” from which software is made), and the freedom to modify the software if businesses want to. These modified versions can be passed on to others.
“There were some high-calibre entrants,” says Coulson. “One was New Zealand-made SilverStripe, an open source content management system.”
Since open sourcing its code, it has been downloaded more than 325,000 times globally in less than four years.
Its CEO, Brian Colhoun, says: “We believe that having loads of happy customers is better for our business than relying on a restrictive licensing model.”
For more information, see www.nzoss.org.nz M
There’s a worrying lack of urgency in the aftermath of
the Christchurch earthquake that means bureaucracy is slowing down the city’s commercial recovery, warns Chartis Insurance’s new CEO Cris Knell.
Knell says he believes it’s a real concern that urgency levels have dropped so far, so quickly.
“The urgency level is declining, yet we are only 20 percent through the recovery process. A lot of people have been suffering business interruption and cash fl ow is paramount. There’s still a lot of work to do.”
He says with upwards of 64,000
Source: ShapeNZ August 2010 2,480 respondents, 651 business managers, proprietors, self employed and professionals. Maximum margin of error on the national sample +/- 1.6%. www.shapenz.org.nz, www.nzbcsd.org.nz. Shape NZ is operated by the NZ Business Council for Sustainable Development.
ALL NEW ZEALAND BUSINESS DECISION MAKERSPublic Private Partnerships PPPs 47.8% 58.6%
Council issued bonds 34.8% 47.4%
A national motor fuel tax surcharge paid to councils 19.8% 26.8%
Higher rates 4.8% 9.7%
None of these 16.4% 11.4%
Don’t know 17.6% 6.9%
other regions who had had similar disasters: the fi res in Australia, the tsunami in Singapore. A response team was set up by 3pm the day of the quake.”
Out of the experience, he’s learned that communications are key: “We wanted people to hear from their insurers.” And so was getting help arranged: “We had to make sure we had our resources lined up. People were clamouring for a limited number of resources.”
Knell says his next job is strategy for the coming year, both in the commercial and consumer markets where products include accident, health and travel insurance, and extended warranties.
“‘It’s about making sure all our guys work closely with our
customers and that they support a good client
service.” M
Cris Knell.
claims to process, his concern is that traditional approaches are too slow.
His preference is to settle claims quickly and get businesses working again. If losses turn out to be more extensive than fi rst thought, they can be reimbursed later.
It’s been a heck of a start to a new job for Knell, who is fresh from senior manager roles in Europe and Asia, for American International Underwriters and the newly rebranded AIG.
“It’s been interesting...” he laughs. “I guess in any new job you have to face challenges, but I have to say I wasn’t expecting an earthquake!”
Knell says because his company mainly deals with the commercial market and a lot of SMEs, with about 800 clients in the city, his team’s fi rst priority was to get his customers’ businesses operational.
“Our mantra was to get assistance on the ground as soon as possible. We were lucky that we were able to reach out to
NOVEMBER 2010 | management.co.nz | 7
Take a fresh look.
Funding whizz wins awardOvercoming some of
the toughest times for the economy, Sharon McCook was able to build partnerships for the Health Research Council of New Zealand that leveraged $3 for every $1 invested by the organisation.
For her work, the young Aucklander has been recognised as a fi nalist in the New Zealand Institute of Management’s Young Executive of the Year Award and winner for the Northern Region.
The funds helped maintain a national programme that enables a cross-sectoral approach to health and disability research.
McCook studied psychology and worked in the fashion and telecommunications industries before moving to the council, where her role is group manager of research partnerships.
“I oversee the allocation of a budget of approximately $6 million for a number of national and international programmes of health research.
“My role is developing and implementing high-quality research programmes that are participatory, where the individual partners jointly own the strategic direction of the work, set the agenda and encourage cross-sectoral buy-in.”
She oversees around 100 research projects, with more than 35 partner organisations in the public and not-for-profi t sectors.
McCook says her management mantra is: “Never ask someone to do a task that I wouldn’t be prepared to do myself,” and says her role is all about managing risk, communication, fi nance, staff and personal business skills.
Robyn Olds, CEO of the Health Research Council, nominated McCook and says she is outstanding in her ability to cultivate and turn relationships with potential partners into tangible gains for the organisation. M
Sharon McCook’s mantra is: “Never ask someone to do a task that I wouldn’t be prepared to do myself.”
Merry Christmas mix-upThis year, all the Christmas and New Year public holidays fall on weekend days, which
creates extra problems for payroll offi ces across the nation. Jo Smith of the TimeFiler online staff management system says many employers found it hard last year with two of the four holidays falling on a weekend, but this year they have even more hurdles to overcome.
“Public holidays tend to signifi cantly add to the workload in payroll offi ces across the country when calculating employees’ pay,” she says. “There is so much to consider – is today a ‘normal’ day of work for the employee and what is a ‘normal’ day anyway?”
Smith says Section 45 of the Holidays Act 2003 contains explicit instructions on transferring public holidays over the festive period. For normal Monday to Friday workers this won’t pose too much of a problem because the holidays are simply transferred to the following Monday and Tuesday, says Smith, but for employees working variable hours and days, payroll is trickier. One of the potential pitfalls is determining what exactly is a “normal, or working” day for the employee.
Smith says many companies choose this time to swap older payroll systems for electronic timesheets that automatically calculate all the complexities of the Christmas leave entitlements.
She says a Google search on timesheet software will offer hundreds of results for good systems, most of them extremely affordable. Some have been built with New Zealand conditions in mind. But don’t expect to make signifi cant savings by choosing one of these products – unless your organisation’s pay requirements are very basic, she warns.
She recommends using the threat of this Christmas’ payroll chaos as a chance to review your organisation’s HR, payroll and fi nancial systems.
NOVEMBER 2010 | management.co.nz | 9
M INBOX
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SUBSCRIBENOW
A world of winnersJohn Brakenridge, of The New
Zealand Merino Company, was named the outstanding leader at the New Zealand International Business Awards in Auckland on October 13.
The chief executive of The New Zealand Merino Company since it began in 1994, Brakenridge has helped grow new categories for merino wool, developed new high-end markets, and changed the way the wool moves along the value chain.
“Culture is key,” says Brakenridge. “It’s an alignment of people, an alignment of interests, and that brings about certain behaviours that make a difference for everyone collectively.”
Steve Wilson, managing director and majority owner of Christchurch’s Talbot Technologies,
won the Emerging International Business Leader award.
“Making technology work is about believing you can, believing you’re a winner, and it doesn’t matter how many reasons why something won’t work, you’re going to get it to work,” says Wilson.
NZTE chief executive Peter Chrisp said he was impressed with the calibre of businesses that won awards and the way they were making their mark internationally.
Awards judge, ANZ’s Graham Turley, said Brakenridge and Wilson had a genuine passion for New Zealand and wanted to see a strong, healthy economy.
OTHER WINNERS• Judges’ Supreme Award for International Business: Pumpkin Patch.
• Best business operating internationally, under $10m: M-Com. • Best business operating internationally, $10m to $50m: Gallagher Security Management Systems.• Best business operating internationally, over $50m: Pumpkin Patch.• Best use of research and
development in international business: Simcro. • Best commercialisation of IP in international business: Grasslanz Technology. • Best use of design in international business: Pumpkin Patch. • Most innovative approach to international business: GMP Pharmaceuticals. M
John Brakenridge – Outstanding Leader.
10 | management.co.nz | NOVEMBER 2010
M AS I SEE IT
Kelvin Hussey At a time when the tele-communications market in New Zealand is a battleground, Kelvin Hussey, the general manager of CallPlus, talks about his perspective on the business.
CallPlus is a Kiwi-owned tele-
communications provider. What does that
mean for the company?
It’s made up of a bunch of cool people, doing
amazing things with technology to benefi t
New Zealand business. The main focus of our
technology is to make things easy and solve
those tricky little telecommunication problems,
like being gouged by the big fellas.
What are the challenges in the
telecommunications market?
There is only one challenge in the New Zealand
telecommunications market and that’s getting
a fair deal from the dominant players. However
new technologies and advances in access
methods mean it’s now possible to get into the
local loop at a competitive rate. Though often
criticised, the New Zealand Government created
cracks in the dominance (don’t tell them I said so)
and once we get in the front door of a business,
we can now make something special happen.
What are the trends we should be looking
out for on the horizon?
Mobility and cloud-based services. If you can get
within range of a WiFi or a WiMax connection
anywhere in the world, you can work, as it will all
sit in the cloud.
How do you see New Zealand’s identity and
our place in the world?
It took me one holiday here (and a Kiwi wife) to
realise that this is where I want to live, however
sometimes I think we underestimate ourselves.
We are one of the only westernised nations to
have a Free Trade Agreement with China – we
need to think big and act like it! M
NOVEMBER 2010 | management.co.nz | 11
M MANAGING SUSTAINABLY PETER NEILSON
The new Super City gives us a chance to fi x congestion sustainably, says Peter Neilson.
The road to sustainability
Nearly eight out of 10 Aucklanders
are concerned about traffi c
congestion. Now the new Super
City gives us a change to manage it.
Congestion has to be fi xed.
It’s not about rail versus roads, or
cars and trucks versus public transport.
Cars and trucks have already won that
debate hands-down.
The debate should be about how
we use our constrained traffi c corridors
so that people and freight get more
easily to where they have to go. We are
literally running out of roads because of
the way we manage their use.
It is estimated freight volumes will
grow by 70 percent over the next 20 to
30 years, if we continue business as usual.
If we get serious about catching up
with Australia, then we would have to
grow our economy at two percent faster
than Australia each year for 15 years, or
one percent faster for 30 years. The only
way we will grow that fast is if exports
and imports grow even faster.
All the evidence suggests that when
gross domestic product grows, freight
volumes in New Zealand grow even faster.
To make progress in catching
Australia, freight volumes will need to
grow by more than 100 percent over
the next 30 years. Given we are only
planning to hold current congestion
rates, we need a step change.
No city anywhere has been rich
enough to build enough roads to avoid
congestion. So the debate in the new
Super City and elsewhere needs to also
encompass not only maximising the
investment in rail and public transport,
but also our road network.
If we ran hotels like our roads they
would be empty most of the time –
and you wouldn’t be able to get a bed
during the peak holiday season. Hotels
price low, off peak, and high during the
peak. We must also look at charging for
accessing roads at peak times, or at least
for express lanes. This will provide many
with the incentive to move road use to
off -peak periods.
This works in other cities. In Stockholm,
congestion pricing cut peak traffi c
volumes to the CBD by 25 percent.
Coordinated traffi c lights, dedicated
freight, or high-occupancy lanes and
real-time traffi c fl ow management can
make a major diff erence to how we
move people and freight.
A report from the Energy Effi ciency
and Conservation authority found traffi c
light synchronisation region-wide would
be one of the most eff ective congestion
reduction measures. However, it didn’t
happen because it was felt to be
politically impossible to get agreement
across seven local authorities in
Auckland. Now there is just one.
The city also needs to consider door-
to-door mini bus systems which pick
people up from home and take them
to main bus and rail corridors. Mini
buses are then used to complete their
trip. Smart jitney bus systems, as they
are called, can move more people on
congested corridors, and better meet
the mobility needs of people in low-
density cities.
Eff ective local schools, walking school
buses, and staggered starting times for
tertiary institutions could reduce peak
period education-related traffi c.
Better cooperation between all the
current players could see regional hubs
created on the fringe of the cities to
switch some truck movements away
from city streets.
We need a long-term commitment
to a package of policies which will last
beyond the terms of one government
and one council.
A comprehensive sustainable
approach will help tackle congestion –
and deliver the step change needed to
cope with 100 percent freight growth
over the next 30 years. That in turn will
be underpinning not only an economic
improvement, but a better quality
of life. M
Peter Neilson is chief executive of the New
Zealand Business Council for Sustainable
Development. The study on Creating a Sustainable
Super City – How to Accelerate Auckland, is
available at www.nzbcsd.org.nz
12 | management.co.nz | NOVEMBER 2010
M POLITICS COLIN JAMES
New Zealand as a think tank? We’re
4.4 million at the bottom of the
world specialising in exporting
much of our best talent to more interesting
and rewarding places.
We’re inventive. But our inventors mostly
sell out to live the triple-B life plus off shore
comforts. Governments have kept research
funding below the OECD government
average, thinking that they mustn’t pick
winners (except for Sir Peter Jackson), that
the point is early commercial wins, that this
country is too small and that voters want
the money spent on other things.
So we do cows and R&R. The wages
aren’t great, but it’s a great place to bring
up kids (then export them to where the
wages are great).
Apply this thinking to 18th-century
Scotland, backward, poor, small, on the
outer fringe of Europe, dominated by
next-door England – and home to David
Hume, described as “the most important
philosopher ever to write in English”,
and Adam Smith, founder of modern
economics, who between them created a
better version of the Enlightenment than
the populous, continental French.
Try small fi fth-century BC Athens where
Socrates, Plato and Aristotle revolutionised
philosophy and Thucydides wrote the fi rst
serious history.
Now note today’s big global shift: the
transformational combination of digital
technology and globalisation, with
nanotechnology and genetics starting
to open wide new opportunities; the
over-reach and collapse of much of the
rich world’s fi nance sectors; the success
(so far) of Chinese state-led capitalism
and its growing military and political
power; the pressure on water, food, oil and
From the edge of the worldCalling all budding innovators and thinkers... New Zealand needs you now, says Colin James.
mineral resources; the looming end to the
“population bonus” which part-fuelled
the past six decades’ spectacular global
economic growth.
Only with innovative analyses, theories
and policy prescriptions will we make
sense of and manage the resultant, very
diff erent, “new normal”.
There is a nascent library of books and
articles on those points. None yet matches
Smith or Lord Keynes or even Milton
Friedman in economics, or Hume and Karl
Marx in politics, as creators of new thinking
for new times.
Can some 35-year-old do that from this
outermost edge of humanity? We can
invent things. Why not ideas?
In science we have. Two New Zealanders
made arguably the 20th century’s greatest
game-changing leaps: Lord Rutherford,
the atom-splitter, and Maurice Wilkins,
co-discoverer of DNA. But in economics
and politics we have no Hume/Smith
parallels, though we have generated next-
level world-class thinkers, among them
historians John Pocock and James Belich.
New Zealand has nevertheless, in bursts,
invented and applied groundbreaking
policy technologies: state-paid pensions
and workplace conciliation and arbitration
in the 1890s; social security in the 1930s;
infl ation targeting, long-range budgeting
and state sector “managerialism” in the
1980s; and biculturalism in the 1990s.
The challenge is to do that again: to
fi nd “what works” in the “new normal”. It
won’t be 1930s to 70s’ mixed-economy
Keynesianism, reheated as some writers
want, or the 1980s to 90s’ neoliberal/
neoclassical small state or the directionless
1990s to 2000s’ “third way” of lost social
democrats.
The traditional way this country has
generated big policy innovations is to
take ideas from abroad, mix in some local
thinking and fi t it to local conditions.
Conservative National is (for now at
least) unlikely to be inventive enough. The
Greens would say they have been waiting
for us on the far side of the paradigmatic
boundary. Young Labourites are beginning
to see the point and opportunity.
If policy-makers here are to replicate our
past game-changing policy innovations,
they will need help. Where from? No
academics are yet visibly above the safe-
thinking peer-review parapet. Of the few,
very variable, future-thinking “tanks”, the
most pragmatically adventurous so far is
the New Zealand Institute – but it has a
way to go.
So can this country do an 1890s or 1930s
or 1980s or 1990s again? Come back in
2020 for the answer. M
Colin James is New Zealand’s leading political
commentator and NZ Management’s regular
political columnist. [email protected]
Two New Zealanders made arguably the 20th century’s greatest game-changing leaps: Maurice Wilkins, co-discoverer of DNA and Lord Rutherford, the atom-splitter.
NOVEMBER 2010 | management.co.nz | 13
M THOUGHT LEADER
From windswept Bluff to a Far North
battling recession, we turned up as
strangers but were made welcome
in over 300 workplaces in industries as
diverse as mining, IT, through to apple-
picking and sheep-shearing.
Called the National Conversation
about Work, the EEO (Equal Employment
Opportunities) project team from the
Equal Employment Commission asked
people from all walks of life – staff ,
managers, public and private sector
businesses – what they thought would
make a diff erence to the way they earned
their daily bread.
The project began in good economic
times and spanned the months when
New Zealand felt the eff ects of economic
recession and the pain of redundancy.
Why is this the Commission’s business?
Article 23 of the Universal Declaration of
Human Rights spells it out: Everyone has
the right to work, the right to equal pay
for equal work, and the right to a decent
income and working conditions.
What did employers tell us?
Many were anxious about age at both
ends of the spectrum and uncertain how
to respond to the challenges presented
by the young and the old in their
workforce. Some employers admitted
to a strong bias against young people
because of their perceived attitudes to
work and stereotypes about the lack of
a youth work ethic. Some employers
believed they have to make a much
greater investment in younger people to
get them up to speed.
Youth unemployment is generally
The way we workWhat do employers want to change about their workplaces? That’s what hundreds were asked over two years by the Human Rights Commission. Dr Judy McGregor headed the project.
higher during periods of economic
recession, but employers’ attitudes
towards young people were a marked
and worrying feature of the National
Conversation about Work.
Many businesses admitted they had
their head in the sand when it came to
the implications of an aging workforce.
For small business-owners, this was
refl ected in a lack of succession planning.
In factories it showed itself as the failure
to think through innovative practices
around the transition to retirement for
older workers.
Many employers said they needed
to make more of mentoring so those
with experience and skills could help
younger workers come up to speed. For
the workers themselves, the big issues
were about whether or not there were
alternatives to fulltime employment or
retirement as mutually exclusive choices.
Many of the small to medium
businesses in regional economies said
they felt beleaguered by red tape. As
one employer said, “There’s been lots of
change in legislation recently (breast-
feeding, fl exi-working). It’s easier for big
companies to respond to this. They have
the resources, but smaller companies
struggle to understand the legislation.
Government could provide more
accessible information and advice.”
It was no surprise that employers
beset by recession wanted greater
employment fl exibility. The majority
were in favour of the 90-day trial
period and some wanted to be able
to roll over temporary contracts
during the downturn because of the
unpredictability of forward orders.
Many employers were upset at new
immigration criteria involving migrants
who were forced to reapply for residency,
and while businesses could understand
the desirability of “Kiwis fi rst”, they relied
on the skills and availability of migrants
for production.
Both employers and employees
raised a number of management
issues. Universally workers identify
superior management with good
communication, personal knowledge of
employees and high-trust workplaces.
Head offi ce management being
perceived as being remote from
workplace issues was criticised by both
middle management and employees.
There was a prevailing attitude among
many managers, business owners and
human resource specialists that there
was a lack of innovation and forward
thinking around employment issues in
New Zealand.
We were impressed by the way many
workplaces had reconciled employee
desire for diff erent work hours to
accommodate family demands and
employer needs relating to productivity
and customer service. The vast majority
of workplaces we visited were high-
trust, high-engagement workplaces
even when there was job insecurity on
the horizon. Creating a good workplace
does not require rocket science. As one
employer said, “People don’t leave good
jobs, they leave bad managers.” M
Dr Judy McGregor is the Equal Employment
Opportunities Commissioner at the Human Rights
Commission.
Dr Judy McGregor.
14 | management.co.nz | NOVEMBER 2010
NZIM
The critically important role
of organisational reputation
is one of the most profound
fi ndings of September’s Most
Reputable Organisations survey compiled
for NZ Management magazine by global
consultancy Hay Group.
The logic is understandable, given a
world now saturated by cynicism at or-
ganisational and fi nancial misbehaviour,
and self-serving morality. What isn’t quite
so obvious is how to respond to the new
marketplace realities of distrust and its
many manifestations.
Conventional wisdom suggests that
reputation-building fi ts into the long-term
goal of strategic thinking. Reputation
undoubtedly grows the longer an organi-
sation is perceived as “honourable” and
“honest”, but times, priorities, pressures
and opportunities are all changing.
The choice of Air New Zealand as the
nation’s Most Reputable Organisation
shows that obviously committed, focused
and inspired team leadership can rebuild
an organisation’s reputation in a stagger-
ingly short time. Such is the power, ef-
fectiveness and pervasive infl uence of the
media, both traditional and social, when it
comes to communicating evidence of what
the survey’s respondents perceived as the
airline’s most outstanding characteristic:
its “strong and effective leadership”.
It doesn’t take a library of academic
or experiential case studies to prove the
link between effective leadership and
organisational success. But it often takes
some heavy hitting to convince organisa-
tions that fi rst, investment in leadership
development pays dividends and second,
that commitment to the right kind of
leadership is what pays most.
So what should organisations think
about when developing or searching for
a leadership development programme?
Start by considering where the leadership
discussion is currently at. And the leader-
ship gurus James Kouzes and Barry Posner,
authors of the leadership genre classic
The Leadership Challenge, provide a good
starting point.
They have just published a new book,
The Truth about Leadership. Its fi ndings are
based on their 30 years of research and the
more than one million responses they’ve
had to their leadership surveys. They have
uncovered what they call, “10 truths about
leadership” which suggest that, while
context of leadership has changed dramati-
cally, the content hasn’t.
“The fundamental behaviours, ac-
tions, and practices of leaders have
remained essentially the same since
we fi rst began researching and writing
about leadership over three decades
ago,” they conclude. “Much has changed,
but there is a whole lot more that has
stayed the same.” And that is probably
the fundamental truth of leadership
development.
The authors believe that each of their
10 truths have stood the test of time and
“hold true globally and cross-generation-
ally”. Their relevance and application is
developed in the chapters devoted to each
truth. They are:
1ST TRUTH: You make a difference.
Before individuals lead, they must believe
they can have a positive impact on indi-
viduals. “When you believe you can make
a difference, position yourself to hear the
call to lead.”
2ND TRUTH: Credibility is the founda-
tion of leadership. In other words, once
individuals believe in themselves, others
need to believe in them, otherwise they
won’t willingly follow. “You must do what
you say you are going to do. This means
being so clear about your beliefs that you
can live them every day.”
3RD TRUTH: Values drive commitment.
Individuals must know what they believe
in. They can only fully commit to an or-
ganisation or cause when there is a good
fit between their personal values and
organisation’s values. “This is also true for
the people you lead.”
4TH TRUTH: Focusing on the future sets
leaders apart. Leaders must be forward
looking. That is the quality that most
differentiates leaders from individual con-
tributors. They must spend time refl ecting
Now is the time
for leadershipOrganisational leadership and reputation – one plays a critical
role in building the other. Reg Birchfi eld argues the case for effective leadership programmes.
NOVEMBER 2010 | management.co.nz | 15
NATIONAL BOARDPHILLIP MEYER FNZIM (CHAIRMAN) BRIAN SOUTAR AFNZIMGARY STURGESS LIFE FNZIM LLOYD DAVIES FNZIMJOHN SANDFORD FNZIM CHERYL DOIG FNZIMLYNDA CARROLL AFNZIM
OFFICESNATIONAL OFFICEActing CEO PHILLIP MEYER FNZIMBox 67, Wellington 6140Ph 0-4-473 0470, Fax 0-4-473 0479Email national_offi [email protected] website http://www.nzim.co.nz
NORTHERNPresident: JOHN SANDFORD FNZIMCEO: KEVIN GAUNT FNZIM, FAIMBox 6600, Wellesley St, Auckland 1141 Ph 0-9-303 9100, Fax 0-9-303 9109Email [email protected] www.nzimnorthern.co.nz
CENTRALPresident: PHILLIP MEYER FNZIMCEO: KARIN CALLAGHAN FNZIM, FIPAABox 11781, Wellington 6142Ph 0-4-495 8300, Fax 0-4-495 8301Email [email protected] www.nzimcentral.co.nz
SOUTHERNPresident: BRIAN SOUTAR AFNZIMCEO: JOSEPH THOMAS AFNZIMBox 13044, Christchurch 8141Ph 0-3-379 2302, Fax 0-3-366 7069Email [email protected] www.nzimsouthern.co.nz
NZIM FOUNDATIONCHAIRPERSON: DAVID MOLONEY FNZIMSECRETARY: JIM THOMSONPO BOX 67 WELLINGTON, PH 0-4-473 [email protected]
LEADERS BUILDING LEADERSOur aim is to build management capabilitythrough, 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.
on the future. “Big dreams that resonate
with others inspire and energise.”
5TH TRUTH: You can’t do it alone. Lead-
ership is a team sport, and leaders must
engage others in the cause. “You need to
enable others to be even better than they
already are.”
6TH TRUTH: Trust rules. Leaders need
trust to enlist others. “Build mutual trust;
you must trust others too.”
7TH TRUTH: Challenge is the crucible
of greatness. Great achievements don’t
happen when things are kept the same.
Change invariably involves challenge, and
challenge tests leaders.
8TH TRUTH: Either lead by example or
don’t lead at all. Leading means going fi rst.
“That’s what it takes to get others to follow
your lead.”
9TH TRUTH: The best leaders are the best
learners. Learning is the master skill of
leadership. “Leaders are constant improve-
ment fanatics.”
10TH TRUTH: Leadership is an affair of
the heart. Leaders love what they do and
those they lead. “Leaders make others feel
great about themselves and are gracious in
showing appreciation.”
The 10 truths are, the authors believe,
fundamental to successful leadership and
should form the basis of any leadership
development programme. Refl ect on the
leadership of Air New Zealand over the
past couple of years and you’ll see much
of what they suggest in action. Chief
executive Rob Fyfe exemplifi es most of
these truths.
Writing in the Financial Times earlier
this year, columnist Michael Skapinker
suggested that the purpose of business
today is to “win respect”. The relation-
ship between business, all organisations
actually, and society must be re-thought.
“There is a deep unease about the way
companies have been run and the role they
play in communities,” he wrote.
His comment relates to another key
fi nding of NZ Management’s Most Repu-
table survey. Respondents voted strongly
for organisations that they perceived
“contributed to the wider community”.
Think leadership development today, and
organisations must identify and develop
individuals with the vision to understand
the importance of community to organi-
sational reputation and acceptance.
Again, as Skapinker pointed out,
shareholders’ interests are no longer the
only interests boards and management
should consider. And profi ts, while unde-
niably essential, won’t necessarily buy you
love, particularly if they are earned at the
community’s expense. Love, or its more
prosaic equivalent – reputation, will rate
higher in tomorrow’s more community-
linked world.
Enlightened and inspirational leader-
ship is a prerequisite to organisational
success. And that means leadership based
on good and sustainable behaviours. Not,
for example, the kind of leadership that
recently led Hewlett Packard’s directors
to pay their disgraced CEO Mark Hurd
US$28 million in cash and stocks, plus
other benefi ts, to “resign” after violating
their ethical conduct code.
As Kouzes and Posner point out,
leadership is about seeing problems and
accepting personal responsibility for doing
something about it. “It is about holding
yourself accountable for the actions you
take.” That is another consideration for a
relevant leadership programme an organi-
sation can take pride in. M
Reg Birchfi eld is a Life Fellow of NZIM.
Air New Zealand’s Rob Fyfe shows that inspired leadership can rebuild an organisation’s reputation in a staggeringly short time.
UNDERSTANDING THE NEW WORLD
18 | management.co.nz | NOVEMBER 2010
A s a country, we’re failing to
capture our inventive fi zz. In
the past 12 months a slew of
studies has shown we’re fair
to middling in the international rankings
when it comes to innovation.
Yet we continue to dine out on our
number eight wire mentality. We laud
the ‘She’ll be right’ hands-on heroes of
garage-land. In one breath, we celebrate
the good old inventive Kiwi battler. In the
next, we fret over our diminishing role in
an increasingly globalised world.
So how innovative are we really? And
what do we need to do to lift our game
as a nation?
Jennifer Moxon, managing director
of IBM New Zealand, argues that while
New Zealand is a regional force in inno-
vation we could defi nitely do better.
“New Zealand rightly has a reputa-
tion as an innovative nation,” she says.
“Our distance from most of the world’s
major markets has encouraged us to
come up with creative solutions in fi elds
as diverse as agriculture, manufacturing,
education and media production.”
She points out that this year, two
major studies ranked New Zealand
among the world’s 10 most innovative
countries. The Economist Intelligence
Unit rates economies on their ability to
use information and communications
technology (ICT) for economic and so-
cial benefi t. This year’s Digital Economy
Rankings rated New Zealand 10th – up
one spot from last year..
International business school IN-
SEAD’s third Global Innovation Index
rated New Zealand the world’s ninth
most innovative country. This makes us
the third-highest ranked country in the
Asia-Pacifi c region and well ahead of
Australia, which was 18th, says Moxon.
According to INSEAD, New Zealand
excels in investment in education, sci-
entifi c outputs, and its government and
regulatory environment.
Moxon believes that New Zealand-
ers should be justifi ably proud of these
results so far, but there is still room for
improvement.
“In particular, we will need to address
some systemic issues if we are to main-
tain our reputation as an innovator – and
keep enjoying the economic and social
benefi ts that result.”
WHERE DO WE LOSE OUR WAY? Others point to studies which indicate a
disconnect between individual Kiwi in-
novators – our garage heroes of old – and
an ability to turn that genius into viable,
world-class businesses.
Rick Boven, director of The New
Zealand Institute, cites the fi ndings of
his institute’s report ‘Standing on the
Shoulders of Science’. New Zealand
Trade and Enterprise’s chief economist
Gareth Chaplin points to ‘Playing to
Our Strengths: Creating value for Kiwi
fi rms’, an NZTE-commissioned report
by economic researcher Tony Smale.
Both studies, in different ways, show
Kiwi inventiveness stumbles at the point
where it could be commercialised.
“Our research last year suggests we
are second in the world at early-stage
initiation,” says Chaplin. “We have lots
of very bright ideas and very good en-
trepreneurs. But we’re 26th out of 36 in
this study in terms of execution. We’re
fi zzing with good ideas. But we can’t
execute and we really struggle to move
the idea from the lab or the prototype
through to successful scale production
and market. That’s the problem for our
innovation system.”
It seems that the determined ‘do-it-
yourself ’ attitude behind Kiwi innova-
tion is sometimes the very trait that
stymies us economically.
Bob van de Kuilen, principal of Novo
NZ as a world-leading
innovatorCould Kiwis’ No 8 wire mindset be the very thing that is holding
us back from being a world-class centre of innovation and thinking? What does New Zealand need to do to become a global leader in the innovation stakes. Ruth Le Pla sought some answers.
INNOVATION
NOVEMBER 2010 | management.co.nz | 19
We will need to address some systemic issues if we are to maintain
our reputation as an innovator. JENNIFER MOXON
Management Consulting, reckons the
‘language games’ we play in our work-
places give us away. They strike at the
core of who we are as Kiwis and how we
see ourselves. He says it’s “distinctively
New Zealand” to talk in the workplace
about structure and innovation as two
opposing forces.
“There’s a sense that people must
choose between the two: that structure
inhibits innovation.” Adding insult to
injury, he says our number eight wire
mentality makes us look like something
out of an episode of MacGyver.
“What are we saying with this con-
cept? That we don’t have the tools we
should have to do a particular job? That
what we have is less than optimal so we
use something else at hand? It’s saying,
‘I’m not building this to be able to ex-
ecute something particularly effectively
or turn it into a viable proposition. In
New Zealand workforces, planning is
not a strong capability. So we see a lot
of stuff done on the fl y.”
Van de Kuilen has been working
closely with author and organisational
theorist Dr Roy Stager-Jacques to ques-
tion the relationship between our folk
image of ourselves and our place in the
world economy. Most importantly, he
questions whether in today’s commercial
environment a MacGyver- type approach
is a source of competitive advantage or a
ball and chain around our necks.
GOOD MANAGEMENT He says that if we seriously want to
talk about innovation, we need to hon-
estly gauge the quality of New Zealand
management skill. “Our management
skill is not only derived from American
textbooks – which have a totally dif-
ferent context – but also our cultural
heritage: our behavioural DNA. So,
when we talk about hot topics such as
productivity and New Zealand’s lack
of it, we shouldn’t look for an easy
answer such as increasing capital in-
vestment as the silver bullet for fixing
this. Productivity is a behavioural issue
– and management is the art of getting
UNDERSTANDING THE NEW WORLD
20 | management.co.nz | NOVEMBER 2010
things done through other people. It’s
behavioural too.”
What can Kiwi managers do to catch
up on this score? Stager-Jacques reckons
we can’t, “any more than I could catch up
to Sarah Ulmer on a bicycle”. “And do we
want to? Do we want to be as affl uent as
Americans at the expense of working like
Americans? Do we want New Zealand
to become Singapore or Hong Kong? I
don’t think so.
DO WHAT WE DO DO WELL“We need to ask, fi rst, what we as a nation
want and, second, what we as a nation
can do distinctively well. To do this, we
need to stop relying on platitudes like
‘Kiwi ingenuity’ and ‘punching above
our weight’.”
Stager-Jacques lists three things that
would help us more effectively move
into our future. First, he says, we should
realistically assess what we do distinc-
tively well, based on a global standard,
and why, and then throw our weight
behind that. He suggests fashion and
fi lm as examples.
Second, at the management level, we
must recognise that people’s behaviour
is based on feelings, not policies. “The
mantra that Bob takes to his clients –
‘management is behavioural’ – is still
radically new to most businesses here.
As long as our business common sense
dictates that management is based only
on strategy, policy, job descriptions,
tion, employ people for those roles and
have robust governance. These tend to be
the ones that successfully commercialise
their ideas.
“It looks as though the conditions for
successful innovation are about how to
commercialise and how to derive value
in-market from the innovative idea or
product.”
That piece of thinking, he concedes,
tallies with the findings of the New
Zealand Institute’s ‘Standing on the
Shoulders of Science’ report. “This is a
reasonably well-hoed road. We’re getting
good at diagnosing the problem: we’re
less good at doing something about it.”
HOW TO BECOME WORLD-CLASS PERFORMERSFor its part, the New Zealand Institute’s
report came up with fi ve substantial top-
line changes necessary for New Zealand
to achieve world-class performance.
We need to assess market needs earlier;
lift the productivity of our science and
commercialisation institutions; ensure
we have enough talent and expansion
capital available; establish a more sup-
portive culture; and manage the innova-
tion ecosystem as a whole.
To Boven, an integrated approach
is vital. “I think of it like this,” he says.
“You have an invention. Then you have
what I’d describe as commercialisation
or business formation or offer forma-
tion. And then you have a third stage
– if you’re talking about economic suc-
cess – which is internationalisation. In
New Zealand, we are best at invention,
less good at commercialisation or offer
formation, and not doing that well on
internationalisation.
personal development plans and con-
tractual relationships, we are working
with a 19th-century British model of
colonial administration.
“The contemporary model for
achieving high performance is based on
organisations where employees have a
high degree of discretion and the work
is fl uid, diffi cult to plan down to the last
detail and globally competitive.”
Finally, Stager-Jacques suggests we
discover what other countries learnt
from industrialism. This, he says, may
help us compete more effectively.
“I could quite regularly move a local
business forward using principles that
were discovered and applied during the
systematic management movement in
the United States, around 1870-1900.”
Kensington Swan chairman and part-
ner Clayton Kimpton agrees that Kiwis
can be very good at fi nding out what’s
wrong and talking over the problem, but
not seeking out a solution.
“We punch above our weight but the
rest of the world isn’t waiting for us to
turn up. We’ve got to get out there.”
NZTE’s Gareth Chaplin believes
innovation failure centres around an
organisation’s inability to specialise.
“The reasons are around scale, business
capability and, in some respects, business
culture and aspiration.”
Contrary to popular thinking, Chap-
lin says, latest McKinsey research shows
that most innovation is happening in
large mature companies. “We look at
the fancy creative companies, but actu-
ally a very small number of them get
deals away. Most of the innovation is
happening in companies that have the
ability to specialise, have an R&D func-
We punch above our weight but the rest of the world isn't waiting for us to
turn up. We've got to get out there. CLAYTON KIMPTON
INNOVATION
NOVEMBER 2010 | management.co.nz | 21
Join NZ’s corporate leaders at the business event of the year.Reserve your tickets now as demand is high for the limited table numbers at this most prestigious of NZ’s business awards.
‘Understanding the New World’
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Join NZ’s corporate leaders at the business event of the year.Reserve your tickets now as demand is high for the limited table numbers at this most prestigious of NZ’s business awards.
‘Understanding the New World’
The Deloitte/Management magazine Top 200 Companies awards6.30pm, Thursday 2nd DecemberSkyCity Auckland Convention Centre
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– celebrate with us the success of companies thriving in this new world environment.
“The lesson we’ve learnt from ‘Stand-ing on the Shoulders of Science’ is we’re not managing the eco-system as an eco-system. We’re managing the parts, but not the whole.
“The best analogy I can give is of a large industrial plant. We’ve got the various departments working well and the hand-off between the departments working okay but we don’t have anybody looking across the whole plant.”
This lack of an overview, he says, results in bottlenecks or choke points: primarily around human talent and cap-ital for our internationalising firms. For some time now Boven has been calling for the establishment of an Innovation Council with a mandate to look across the entire eco-system, identify choke points and facilitate resource redeploy-ment to get issues remedied.
He also sees the establishment of a Ministry of Science and Innovation as
a step in the right direction. “But in my view it doesn’t go far enough because it doesn’t bind in the universities.” Boven struggles with New Zealand’s lack of focus on producing much-needed talent, suggesting we consider differentiating our universities to en-able some to specialise in international entrepreneurship, for example, while others might home in on operational effectiveness.
And he urges further consideration of the advantages of a cluster strategy that encourages organisations to co-locate for mutual benefit. “New Zealand scores 56th in the world at the moment on clusters. That’s down from 35th place in 2001 – so we’re going backwards relatively.”
Katherine Corich is the New Zea-land-raised founder and director of UK-based knowledge training and information management company
Sysdoc. On the one hand, she main-tains her excitement for the “fantastic”, “innovative”, “entrepreneurial” New Zealand approach to business. On the other, she shares Boven’s understand-ing of a need for a join-the-dots coor-dinated system.
“We do the number eight wire really well, but we need to look at the whole farm a lot more. It’s not just about me fixing a fence on my own because I’m capable or entrepreneurial enough to figure out a way to do it. There’s a bigger picture. How do I look at the whole farm and what’s my five-year plan for it? How do I do rotation plantations, make sure the soil is well looked after, convert my streams to have full riparian rights and move the cattle out?”
To Corich, it’s about how we can adopt more formal processes without losing our entrepreneurial flair. In her view, “she’ll be right” doesn’t cut it.
UNDERSTANDING THE NEW WORLD
22 | management.co.nz | NOVEMBER 2010
IBM’s Jennifer Moxon points out
that when, earlier this year, the Univer-
sity of Auckland and IBM published the
fi rst Innovation Index of New Zealand,
it identifi ed the agriculture, forestry and
fi shing industry as the nation’s leading
innovator.
“This sector, responsible for 54
percent of our total export income,
showed innovation almost double the
national average,” she says. The study
also identifi ed above-average innova-
tion in manufacturing, hospitality and
communications services.
“However, innovation and produc-
tivity, when measured across all sectors
of the New Zealand economy, have pla-
teaued since the early 2000s.” If we want
to understand this apparent contradic-
tion, Moxon says we must look at areas
where New Zealand performs poorly
compared to the rest of the world. These
will be the missing ingredients where we
need to deliver stronger innovation and
sustainable economic growth.
INSEAD’s Global Innovation Index
identifi ed three areas where New Zea-
land lags many countries: technology
infrastructure, general infrastructure
and business innovation. New Zealand
rated 48th in business innovation, for
example, compared with Australia’s
ranking at 22.
Moxon points the fi nger at systemic
issues in transport infrastructure, util-
ity networks and healthcare costs
which, she says, are hampering our
economy.“The answer in all three cases
is to build more intelligence into these
systems so they can turn data into infor-
mation that will lead to greater produc-
tivity. For example, traffi c congestion in
Auckland is estimated to cost $1 billion
every year. Rather than widening roads,
I believe we can use smart technology to
make our existing transport infrastruc-
ture more effi cient.
“A dynamic road toll system in
Stockholm, Sweden, has reduced traf-
fi c by 20 percent, decreased wait time
by 25 percent and cut emissions by
12 percent. Locally, the New Zealand
Transport Agency has implemented
intelligent road signs on the state
highway network, which give travellers
advance warning of road closures, traf-
fi c incidents and bad weather. In addi-
tion, KiwiRail Network is using smart
analytics to improve the maintenance
of its rail infrastructure and increase
the speed, safety and reliability of our
national rail service.
“Our utility networks are also crying
out for a smarter solution. Currently up
to 10 percent of the energy we gener-
ate is wasted, as is nearly 20 percent of
our water.”
Moxon says The Netherlands gov-
ernment is trialling smart electricity
meters which allow householders in
Amsterdam to check their energy us-
age online. It estimates this system will
reduce carbon dioxide emissions by at
least 14 percent. “It’s good to see New
Zealand’s power distribution compa-
nies are also trialling smart meters,”
she says.
Today, 20 percent of total New
Zealand government expenditure goes
towards healthcare, while preventable
‘adverse events’ cost the national health
system almost $600 million every year,
she says. Healthcare costs are growing,
in real terms and as a proportion of
our economy.
She says many governments are
fi nding smarter ways out of this spend-
ing spiral. “In Denmark, patients can go
online to view their medicine profi les,
renew prescriptions, book appoint-
ments and have electronic consultations
with GPs. This system saves the average
Danish doctor 30 hours a week in ad-
ministrative work.”
A year after the New Zealand Insti-
tute released ‘Standing on the Shoulders
of Science’, Boven says choke points to
innovation retain their hold. “We have
a basic technological capability here. We
have a labour cost advantage relative to
the very wealthy countries and we ought
to be able to exploit that to bootstrap
ourselves up.”
To Boven’s mind, we must balance
a sense of urgency with a need for
patience. “We must get into the race
because we don’t want to fall further
behind. But these things take time, so
don’t expect results in two, three or
four years. Think more about fi ve, six
or seven years.”
On a positive note, he now sees
much stronger recognition of how
important innovation is to our future.
It’s firmly on the agenda. It’s being
discussed. He remains optimistic that,
ultimately, New Zealand will rise once
again in the innovation rankings. “The
obstacles are not insurmountable. If we
have the will, we can do it.” M
Ruth Le Pla, a former editor of NZ Management, is a
freelance business journalist. [email protected]
We must get into the race because we don’t want to fall further behind.
RICK BOVEN
American Home Assurance Company (New Zealand Branch), trading in New Zealand as Chartis.
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See ‘Insurance Survey 2010’, Euromoney Magazine June 2010, Volume 41, Number 494.
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SMART COMPANY
24 | management.co.nz | NOVEMBER 2010
Half of what goes on in the
sprawling 10,000 square
metre Fonterra Research
Centre you won’t have heard
about. And some of it you never will.
Secret patents mean Fonterra low-
ers a cone of silence on a whole wing
of its research facilities to prevent
competitors from discovering patents
and launching rival technologies.
That makes Jeremy Hill’s job hard.
The research centre’s chief technology
officer says he’d love to show people
the innovations Fonterra is research-
ing in its sealed laboratory, trialling in
its pilot plant or testing in its sensory
consumer division. But he can’t.
“We have some blockbusters,” is as
much as he can reveal about a good part
of the work they do. But there are some
innovations that have been released and
are public knowledge. In fact, one of
them is so revered it was immortalised
on an NZ Post stamp – spreadable butter,
a breakfast-time hit around the world.
And there are others you might see
in media reports from time to time –
medical advances and new food prod-
ucts – which add up to a major body
of research from a centre that develops
up to 300 prototypes a year.
Fonterra has quietly become a
world leader in dairy research and
development, often working in part-
nership with international joint ven-
tures, like one with Dutch company
FrieslandCampina. This pharmaceu-
tical partnership provides much of
the world’s lactose utilised to produce
excipients used as carriers for the ac-
tive ingredients in medication. In one
example, lactose is being processed
into a dry carrier enabling asthma
medication to be taken further into
the lungs.
These commercial relationships,
The grass is greenerWorld fi rsts in innovation are an everyday event at Fonterra’s
Palmerston North research centre, says Brenda Ward.
Fonterra’s chief technology offi cer Jeremy Hill.
Fonterra’s Graeme Gillies in the rheology department.
AUC KLAN D | WELLI NGTON | ABU DHABI
WHAT’S YOUR
STRATEGY FOR
GROWTH?
With offi ces in Abu Dhabi, Kensington Swan is making connections for Kiwi businesses with products or services to export.
The Middle East presents real opportunities for New Zealand business.
A taste of the futureAmong the Fonterra innovations are:• An award-winning low-salt savoury cheese.• ReCharge, a nutritional ice cream for chemotherapy patients unable to eat a normal diet, produced in a joint venture with the Auckland University Medical School.• A crystal clear high protein sports drink developed out of whey protein.• Whey chips with enhanced protein.• Culinary cream for the food trade, which doesn’t separate as it heats.• A dairy product that could save lives by helping prevent rotovirus-related diarrhoea.• Probiotic yoghurt that alleviates eczema.• Confectionery bars with reduced fat and sugar content that retain taste.• A technology that shortens the time spent to make mozzarella cheese from months to hours. The cheese is used in commercial pizzas by Pizza Hut, Dominoes and Hell Pizza.• Satellite milk concentration plants. Fully automated, they have cut tanker deliveries in some areas by half.
for items as varied as confectionery
and products delivering enhanced
levels of proteins, drag in millions of
export dollars.
There are 350 scientists working on
research at the four hectare site near
Massey University, 100 with PhDs.
Among them are food technologists,
scientists and engineers. “It’s a com-
munity of world-leading scientific
expertise in the commercial area, fo-
cused on creating millions of dollars
worth of value for the New Zealand
economy,” says Hill.
Investment in this centre for inno-
vation is substantial, using machines
you’d recognise more from medicine
than research: x-ray, MRI and micro
CT scan machines, a mass spectrometer
and a spectacular confocal microscope
that can recreate in 3D the molecular
structure of a material.
Applied to dairy advances, these
expensive machines analyse the story
inside milk powders or explain the
effects of different compounds on
calcium in bone marrow.
Fonterra’s expertise, says Hill, lies
in the marrying of the theories devised
in the lab with practical production
done in two pilot plants – one itself the
size of a smallish dairy factory. “This is
what differentiates us,” says Hill. “It’s
not just a lab, we test and produce new
processes. We call it from ‘PowerPoint
to prototype’. We can produce finished
dairy products, and we can then test
the look, the feel and the sensory
characteristics.”
Anne Abraham, head of consumer
and sensory science, employs 60 part-
time permanent staff members whose
sole job is to taste and report on the
qualities of the food products in de-
velopment.
The company is also investing
heavily in people, recruiting leading
scientists from as far away as Zimba-
bwe and Iceland as it gathers expertise
– and running its own year-long mas-
terate in dairy science through Massey
University, a “fast track for talent” that
brings students into the business as
they study. M
Fonterra’s ReCharge ice cream helps chemotherapy patients.
FACE TO FACE
26 | management.co.nz | NOVEMBER 2010
Rod Drury Wired to the world
When you sign up to Xero, the bank’s transactions ‘automagically’ appear,
it’s a bit like a game of Tetris.
Connect with opportunities in the Middle East. Request your copy of ‘Doing Business in the United Arab Emirates’ atwww.kensingtonswan.com
Clayton Kimpton | Chairman
EXPORT TO THE MIDDLE EAST
AUC KLAN D | WELLI NGTON | ABU DHABI
It’s not as hard as you think—we’ve done it ourselves.
Rod Drury has had what he calls
“good pay days”. The day he
and partner Tony Stewart sold
Glazier Systems to Advantage
Group was a good pay day. And the day he
sold AfterMail to Quest was another one.
And the good days keep coming.
Now, as he steers growing interna-
tional accounting software fi rm Xero
into another day of growth, every day is a
good day because he is doing something
he is passionate about. And he’s doing it
from a place he’s passionate about.
Drury is talking to me by Skype from
Partners lounge in South Auckland, sell-
ing his socks off to a group of business
customers. He is a CEO who sells just
as passionately as any one of his sales
consultants across the globe.
After leaping into many new technol-
ogies (sometimes too new) in his previ-
ous lives, his latest secret is an overlooked
gap in the market – hot technology for
small businesses. “In our consumer life,
we’ve got really good technology, but not
in business.”
Drury claims we’re entering the third
generation of small business software.
Technology innovator. CEO of Xero. Director of NZX. On the advisory board for Trade Me and NZ Trade &
Enterprise’s Beachheads Programme. Part of the Pacifi c Fibre project. Husband and father. Is there anything
this man cannot do? Brenda Ward fi nds that Rod Drury does everything ‘automagically’.
his virtual offi ce in the rural hamlet of
Havelock North in Hawke’s Bay, where
he and wife Anna are “absolutely loving”
being in the provinces. When his three
kids come running in, full of chatter,
he has to shut the door. When he’s not
overseas, this home offi ce is where he will
work remotely for most of the week, with
a couple of days in the Wellington head
offi ce and a day a week in Auckland.
He’s the brains behind Xero, but
he also rolls up his sleeves. Earlier the
same week he was at a BNZ Business
The fi rst was DOS computers and Lo-
tus 1-2-3, then in the 1990s Microsoft
Windows. Now we’re in the cloud. “But
none of the really big software provid-
ers do anything for small businesses,”
says Drury.
He quickly realised the big change
was the internet, which fundamentally
alters how you do business. He found
small business owners were happy to pay
a reasonable amount of money to make
their lives easier and now has nearly 100
people working in the business around
FACE TO FACE
28 | management.co.nz | NOVEMBER 2010
the globe and people in more than 50
countries using the software.
Drury is unashamedly proud of Xero.
“We have the best products in the world,
we win global awards, all the big guys
are watching us,” he tells the attendees
at the gathering of South Auckland
businesspeople. “We spoke to a whole
lot of businesses and we found out that
they all did the same sort of thing every
day. What’s the fi rst thing you do in the
morning? Check your bank account,
have a coffee, go online to see who paid
overnight.” People nod.
But people rarely processed the data
then. The horror was the catchup later.
More nods.
“So we thought, why don’t we go and
get the billing data and put it in there
for you? When you sign up to Xero,
the bank’s transactions ‘automagically’
appear, it’s a bit like a game of Tetris,
you go down the decks, you can write
comments, code it, look at matches. The
technology’s getting better and better.”
His sales pitch continues: GST
changes were a doddle for Xero; Xero
talks to your bank and updates your
records every day; Xero can send out
thousands of invoices at once; there’s a
new Xero iPhone app so builders can fol-
low up invoices while they’re on the job;
NZ Post is working on virtual mailboxes
to send out Xero invoices.
His plan is audaciously big. It’s
bigger than Xero. It’s about putting
together all the technology pieces, so
New Zealand could become a whole
business network. Ultimately, you could
be linked to all the other businesses in
New Zealand – or the world. Already
the banks are converts, with BNZ as a
real supporter, allowing Drury to talk to
customers around the country at BNZ
Partners centres.
WORLD LEADERS“We’re leading the world. In New Zea-
land, Xero and the banks were the fi rst
to integrate online banking software
into your accounting software. The NZ
Post guys have just been to Copenhagen
to see what they’re doing there. Our
so we persuaded the partners that we
wanted to do software.”
He and Stewart started software
development company Glazier Systems
in 1995 then sold it to Advantage Group
in 1999. Stewart later bought it back
and continues to operate it as Intergen.
“A lot of other businesses came from that
and I still work with a number of people
from the Glazier days,” says Drury. “We
got to travel through the US and bench-
mark ourselves with all the dot.com play-
ers over there, but we didn’t have capital to
build sales teams and really go for it.”
After the sale of Glazier, Drury co-
founded Context Connect and fi led pat-
ents in the mobile directory space. Context
Connect is still based in Boston, Massachu-
setts, with offi ces in Wellington.
When I go to the US and UK, it doesn’t matter any more where I
come from. It’s about being able to do business from here.
vision is that we don’t type in invoices
any more.”
For all the salesmanship, Drury
categorises himself not as a salesman,
nor a CEO. “I’m a bit of a serial en-
trepreneur. I’ve started a number of
businesses and each one builds more
networks and capital.”
He started out with accounting fi rm
Arthur Young as a fi red-up young IT
consultant. “We thought that software
was really magical.” In 1989 the fi rm
became Ernst & Young, and he and
colleague Tony Stewart developed their
skills in the newly merged organisa-
tion. “That’s where we learnt our craft
through internal entrepreneurship. We
wanted to work with things we enjoyed,
The company has developed a port-
folio of intellectual property throughout
the world focused on private, directory-
based connectivity.
Then in the mid-2000s Drury decided
he wanted to “build a world-class business
in New Zealand” and started AfterMail. It
works alongside Exchange (or any other
email system) and loads all Enterprise
email into a relational database. One of its
benefi ts is providing a Flight Data Recorder
for email, something the Microsoft and
Enron trials had shown was essential.
It had expanded to nine countries
and Drury says he had a choice of seek-
ing venture capital funding or selling the
business. Selling the business was the
right option, he says. “It was nice getting
A BOLD MOVE FOR A LAW FIRM
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To succeed in tomorrow’s global market place, you need to make bold moves today.
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Choose to work with a progressive fi rm with connections to help you grow your business.
a pay day from Quest, and the product
won the Best Exchange Product at Mi-
crosoft TechEd 2006 in Boston.”
After being part of Quest for a
year, Drury went travelling around the
world seeing how professional software
companies operate. “I wanted to start a
public company, building a long-term
sustainable business, to be able to raise
real money to do real things.”
Business for him has to be enjoyable
and challenging and he says he saw Xero
as “a whole lot of chess pieces”. “It was
a really cool challenge. While it was a
whole lot of fun, it was scary too – people
can see the numbers. But we have the
money to execute strategy.”
Drury sees himself as a part of an
interconnected group of entrepreneurs,
all bringing different experiences to New
Zealand business. “I was on the board of
TradeMe. That deal experience we got
selling AfterMail helped, and TradeMe
sold quickly [to Fairfax] and we got a clean
deal. A lot of us know each other and some
of the TradeMe people moved with me to
Xero and Pacifi c Fibre. That’s led to David
Kirk investing in Xero and he’s on the
board. We grow strong business relation-
ships, and keep building the network.”
BRIDGING THE DIGITAL DIVIDE Working together, New Zealanders have
the skills to create global businesses, says
Drury.
“When I go to the US and UK, it
doesn’t matter any more where I come
from. It’s about being able to do business
from here. We have Xero customers in
50 countries, and we’ve evolved from
an export-focused business to being a
global business.”
But a truly global business needs
world-class communications and that’s
where the Pacifi c Fibre project to link
Australasia to the US started. “There’s
a growing digital divide between New
Zealand and the rest of the world, but
we can close that gap,” he says. “Ultra-fast
broadband drives a lot of outcomes for
education, for attracting businesses here,
video conferencing around the world. It’s
the most fundamental thing that we can
do to help this country.
“We knew that the Government wasn’t
going to do it. We used our New Zealand-
ness, the capital that we needed to fund
it to a certain point, and got really great
people involved like Sir Stephen Tindall,
Sam Morgan and the others. We’re going
to pull it off and it feels really good.”
Drury says large projects are often
easier than small ones, and Pacifi c Fibre
has been simpler to put together than
Xero. “We have the resources and energy
to fi x it, so that’s what we’re doing. It’s
just good business; we’re helping out so
many businesses.”
Whether it’s helping New Zealand
business as a whole or making “the hor-
rible accounting jobs easier for people”,
projects like these make Drury feel good.
“Pacifi c Fibre is a great business – that’s
what turns me on; it’s not about money,
it’s about doing things you really enjoy,
connecting New Zealand to the rest of the
world and making us more nimble.”
So where to now for Drury, a mem-
ber of New Zealand Hi-Tech Hall of
Fame, who’s been the Hi-Tech Entre-
preneur of the Year twice and winner of
the Kea World Class New Zealander for
ICT award in 2008? “I’m really enjoying
Xero and we’re only just at the end of
the beginning really. We’ve got a best-
in-class product and the next phase is
moving the goalposts. My goal is to get
a billion-dollar company out of New
Zealand. I’m hoping this is my last role.
“A lot of businesses have started up
on the back of Xero, software companies,
special applications – that’s a healthy and
positive thing to see people make money
out of our product. Now we’re starting
to get viral, we’re seen as being best in
class. I want to prove that we can build
globally signifi cant companies in New
Zealand using our brains.” M
EEO TRUST AWARDS
30 | management.co.nz | NOVEMBER 2010
The winning workplaces The winners and highly commended from EEO Trust Work & Life Awards 2010 were:
Work & Life/Diversity Initiative Award and Supreme Award Winner: The Warehouse.
Highly Commended: Chapman Tripp.
Workplace Work & Life Award Winner: ANZ New Zealand.
Highly Commended: Microsoft New Zealand.
Skills Highway Award Winner: Liddell Contracting.
Highly Commended: Canterbury Spinners, Millennium Hotels and Resorts, New Zealand Army.
Tomorrow’s Workforce Award Winner: OMEGA.
Walk the Talk Award Winner: Henare Clarke, Downer New Zealand.
There was no winner in the Workplace Diversity section.
Staff engagement translates into
overall business performance,
and this is proven by the suc-
cess stories of winners from this
year’s EEO Trust Work & Life Awards,
says CEO Philippa Reed.
She says the awards are not just a
feel-good celebration, but show that
workplace initiatives do add to the bot-
tom line of an organisation.
“As part of the review process, we
consider both quantitative and qualita-
tive criteria, and as judges we see com-
mercial data companies would not pub-
lish,” Reed said on the eve of the trust’s
annual Work & Life Awards dinner at the
Auckland Museum on October 28. That
data proves a strong link between en-
gagement, a positive workplace culture
and commercial success, she says.
“The winner, The Warehouse distri-
bution division, is an example of how a
business has to be judged not just on its
entry, but on the sense of engagement
of people across different parts of the
organisation,” says Reed. “This was really
exemplifi ed there.”
The Warehouse won the Supreme
Award for its fathering initiative, which
became a booklet available in stores for
Father’s Day (see box, right).
“When I went there, they were wel-
coming, friendly, and people were able to
engage around complex personal family
issues. The entry was well documented
and the evidence they gave, plus a sense
of how it works, walking around, showed
it has helped lift the performance of that
business.”
EEO diversity practices include hir-
ing based on merit, fairness at work,
fl exible working options and promotion
based on talent. They relate to all aspects
of employment including recruitment,
pay and other rewards, career develop-
ment and work conditions.
Since the EEO Trust was formed in
1992, there have been colossal changes
in the way our working lives mesh with
the rest of our lives, says Reed.
“Our role isn’t just about raising
awareness of our incredibly diverse
workforce, but all the challenges of work-
ing in that workforce – where there are
more women working, the challenges
of older and younger people, ethnic
diversity and more immigrants in our
workforce.
“We are still meeting challenges and
adapting. There has been a very 20th
century approach to working and living,
and organisations are still being forced
to adapt and change to the challenges
that are going on. That’s what the awards
are about.”
She says the awards have been
through different phases, starting out
as the “Work and Family Awards”.
“They have evolved as we’ve moved
away from that emphasis, to looking at
Get life into workBusiness, staff and families all benefi t from workplace diversity initiatives, says EEO Trust CEO Philippa Reed.
Brenda Ward spoke to her about New Zealand’s top workplace performers.
NOVEMBER 2010 | management.co.nz | 31
As a result of on-site parenting workshops held during work time, team members at The Warehouse distribution centres are now better parents and better connected with each other in an initiative that won the company the Supreme Award at the EEO Trust Work & Life Awards 2010.
When it was looking for common elements amongst its diverse workforce, The Warehouse noted that one thing most men share is the experience of being a father.
Building on a strong family culture in its distribution centres, the company offered pilot parenting workshops developed by the Min-istry of Social Development parenting project, SKIP (Strategies for Kids, Information for Parents) to male team members at its South Auckland distribution centre in 2008.
Eighty men attended the hour-long workshops during working time. They included fathers, grandfathers, uncles, intending fathers and men who wanted to share their experience of being a son.
SKIP provided practical parenting knowledge and skills based on non-physical discipline. The SKIP messages focus on what children need to be happy, such as love and warmth, limits and boundaries, and talking and listening.
To take the initiative a step further, a booklet, DIY Father – take time to be a dad, was published, featuring photos of some of the men and their children, as well as their comments about what it’s like to be a fa-ther. For example, one man said, “I promised myself I’d do it differently when I had kids, not miss out like my dad did with me.”
DIY Father was given away at The Warehouse stores on Father’s Day in 2008 and used at follow-up parenting sessions in the distri-bution centres in 2009. These sessions were so well received, that it prompted the female team members to ask for similar workshops.
More than 60 women attended the workshops last June and a similar booklet called Love being a Mum, it’s worth every moment! was published and distributed throughout The Warehouse stores on Mother’s Day.
HR manager Kirsty Wooding says the distribution centres, which employ 270 people at four locations around the country, already had high team member retention and productivity, but wanted to build on the manager/team member relationships to grow a stronger sense of community.
“We have a predominantly European management team leading a diverse, multicultural, predominantly Maori and Pacifi c workforce,” she says. “There was poor understanding of each other; we needed to know what made each other tick, understand where we came from and how to further support and grow our people and our operation.”
Bringing team members and managers together to share their experiences of parenting was a critical element of the workshops.
Dads do it betterParenting workshops have encouraged The Warehouse workers to become better dads.
As one participant writes, “It’s nice to know that I can speak to my supervisor about my daughter… we’re all experiencing the same things.”
Wooding says the workshops were also a way to show team members that they were valued, by providing parenting tools and information at a time and place that suited them.
EEO Trust Work & Life Awards judge Chris Meade was particularly impressed that the workshops were offered during working hours. Another judge, Dave Belesky, said The Warehouse project showed innovative thinking that took account of the whole person. “Team members have a family life outside work and that impacts on who they are when they come to work.”
As well as supporting local families and communities, the distri-bution centres experienced substantial business benefi ts from the parenting project. Overall, engagement scores went from 77.5 in 2008 to 88.9 in 2010 for the South Auckland distribution centre, a much bigger increase than across the wider organisation. Productiv-ity also improved and absenteeism has decreased by almost two days per full-time equivalent staff member since 2008.
But this is only part of the story. “By trying something different, we’ve seen attitude changes to parenting amongst managers and team members alike,” says Wooding. “Typically we’ve supported the community with fundraising activities, but working with SKIP was a way to focus on our own community.”
One mother said, “Sharing thoughts really helped, how to be patient, looking after them and how to resolve issues... It’s like one big family here.” A father said, “I learned that if you want to keep your kids safe, make friends with them, talk to them.”
The Warehouse plans to extend the workshops to other team members at other distribution centres and its Store Support Offi ce, and is working with SKIP to produce a toolkit for other employers.
“We’ll share what we’ve learnt: where to start, how to get buy-in, and what the long-term bottom-line returns are,” says Wooding.
The Warehouse’s initiative for dads won the distribution division the Supreme Award at the EEO Trust Work & Life Awards.
SUPREME WINNER
EEO TRUST AWARDS
32 | management.co.nz | NOVEMBER 2010
“I don’t think the fi nancial situation
has affected the number of entries, which
were slightly down on the previous year
– but last year was a record year. The
feedback we had from some companies
was more that people didn’t have the
time and resources to prepare the entry
that they wanted to.”
The Christchurch earthquake also
affected some South Island entries in the
late stages of the process.
But entering the awards alone can
be a positive experience for workplace
culture, says Reed.
“Every organisation that enters says
that it makes them aware of what good
initiatives they do have. Entrants report
a morale boost and say it puts the focus
on the very concrete business benefi ts
and people benefi ts of the initiatives.
It’s about taking stock, taking time to
refl ect.”
There were 44 entries for this year’s
awards, with the largest category being
the Skills Highway Award, for workplace
literacy and numeracy programmes. It is
sponsored by the Department of Labour,
which has run workshops on how to
enter – and that showed, says Reed.
Judging is complicated by award-
winners not being announced until the
awards dinner. “There is a challenge in
doing the preparation, interviewing,
seeking photographs and doing back-
ground material without letting on, but
it adds to the excitement on the night.”
Very often it’s not about the values
statements that you see on the wall of a
business, says Reed. “It’s about how it’s
exemplifi ed in people’s behaviour. You
can watch the interaction between staff,
between managers and staff, and how a
CEO engages with people and that is a
much better measure of the success of
the initiative.”
Joining Reed on the judging panel
this year were Paul Hellyer of IBM, David
Stewart of the EEO Trust Board and Te
Hopai Trust, Chris Mead of Downer
(last year’s Skills Highway Award win-
ner), Alison Quesnel of Blackmores and
David Belesky of the Ministry of Social
Development. M
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Systems engineer Kyle Pontifex is a striking example of how a fl exible working approach allows staff to progress both a sporting and a business career.
Pontifex is goalkeeper for the Black Sticks New Zealand hockey team and thanks to his employer’s approach to fl exibility, the double Olympian has been able to juggle his work and his sporting career.
Pontifex’s example helped ANZ win the Workplace Work & Life Award by aiming to change people’s thinking about fl exibility at all levels of the business.
Under the bank’s My Flexibility policy, launched in mid-2008, Pontifex has made use of options such as fl exible working locations and fl exible start and fi nish times so he can fi t in practices, and special leave, including 12 months of leave without pay while he played professionally in Europe.
“It’s really important to me to continue my career progression while competing at an international level,” says Pontifex. “When I retire from international hockey, rather than starting with no work experience, I’ll be well-placed to continue my professional development.”
The bank’s My Flexibility policy applies to ANZ New Zealand’s 9000 employees “irrespective of how long they’ve worked for us and not just those with caring responsibilities”, says HR consultant Anna McCready.
Esther Consedine, organisational development consultant, ANZ New Zealand, says: “We worked hard to highlight that fl exibility was about the results for employees and not about people being at their desk at certain hours.”
Parental leave return rates have increased and now 83 percent of employees who return from parental leave stay for more than 12 months, well above the bank’s target of 50 percent. Sick leave, absenteeism and turnover have all decreased and the average length of staff service is now eight years.
Judge Paul Hellyer says: “It’s not just for staff in positions where it’s relatively easy to offer; the business tries to make it work for everyone.”
ANZ a real sportANZ’s fl exible working arrangements helped Black Sticks’ Kyle Pontifex reach his goals.
Kyle Pontifex’s goals cover both hockey and his career.
how organisations are adapting to meet
the new challenges of managing their
businesses in a very diffi cult time. It’s
about meeting the needs of their work-
forces, both fi nancial and social, with a
crossover into family needs.”
As society changes, we need different
patterns and different ways of accom-
modating our lives at work and our lives
outside work, she says.
The trust believes an inclusive and
tolerant workplace motivates employees
to perform to the best of their ability,
promoting understanding between
people to create a stronger and more
focused team.
It aims to help people balance their
lives outside work with their responsi-
bilities at work so they can be focused
and creative. The awards celebrate or-
ganisations that embody these traits.
Reed says the trust wondered wheth-
er the global fi nancial meltdown that
hit businesses last year would affect the
number and quality of entries, but that
worry was unfounded.
WORKPLACE WORK & LIFE AWARD
PHO
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NOVEMBER 2010 | management.co.nz | 33
Tomorrow’s workforce will be determined by what we do today, says Justin Treagus. He’s the CEO of OMEGA (Opportunities for Migrant Employment in Greater Auckland), whose mentoring programme is channelling skilled migrant talent into New Zealand companies.
Chances for new Kiwis Mentoring partnerships between Kiwi professionals and new migrants benefi t both sides – and NZ Inc.
The programme links recently arrived skilled migrants who are underemployed or jobless and professionals with similar skills and industry knowledge.
The idea is that mentors provide one-on-one support, advice and local knowledge to build migrants’ New Zealand job-search capabil-ity and confi dence. The payback for the mentors is the chance to extend their leadership and coaching skills.
Although the New Zealand skills shortage is well documented, far too many migrants are struggling to get over the hurdle of lack of lo-cal experience. As document controller and former mentee Jonathan ‘Woody’ Ramirez puts it, “Getting a visa in the Philippines is not landing a job in New Zealand.”
As Treagus points out, nearly half of all skilled migrants to New Zealand are inactive, unemployed or in jobs for which they are overqualifi ed – and that’s a lot of people given that 37 percent of Auckland residents are immigrants.
“It also accounts for the foreign lawyers and engineers cleaning and driving taxis, and amounts to an incredible waste of talent,” he says. OMEGA, based on a Canadian model, takes applications from internationally trained, professional immigrants who wish to work in non-regulated sectors. They undergo a thorough screening and interview process.
Microsoft is known to most of us, but its 150-strong New Zealand company aims to maintain a “local employee experience”, says HR director Sally Doherty.
“It could be so easy to rest on the coattails of your parent company and hope that the corporate culture lands in your respective country,” she says. But Microsoft New Zealand (MSNZ) has invested time, energy and thought leadership into creating a local culture that will attract and retain the best employees. The approach has resulted in the company being Highly Commended in the Workplace Work & Life section of the EEO Trust Work & Life Awards 2010.
A large part of Microsoft’s Kiwi culture is a fl exible working policy for those who wish to work part-time, fl exible hours or job-share. “Employees are given the fl exibility to work from home and can take time out during the day to go to the gym, watch their child play or simply leave at 3pm to pick their children up from school,” says Doherty.
“Some employees choose to come in later in the morning, some leave work earlier and others choose to work from home. Flexible working is
Microsoft as a Kiwi companyGlobal software company Microsoft’s local subsidiary ensures that its culture refl ects Kiwi workplace values.
not just for parents, and the options are endless.”
Aucklander Kimarie Ramdhari, a licensing specialist, is one of those on the global Microsoft Academy for College Hires development programme. She is enjoying seminars to foster collaboration, workshops on business practice, career coaching and the like.
“I’ve honed my soft skills but most importantly, I’ve learned how to manage my time and prioritise responsibilities.”
Thanks to the supportive culture, staff turnover at Microsoft is low; the majority of people who leave transfer to overseas roles.
EEO Trust Work & Life Awards judge Philippa Reed says that on her visit to Microsoft, employees from throughout the organisation gave examples on how fl exibility makes their lives easier. “Microsoft obviously has access to technology that enables fl exibility but its workplace culture and attitude actually support and promote fl exibility.”
To capitalise on his 16 years in IT in the Philippines, Ben Lim, right, was matched with mentor Scott Lord of Zintel Communications in Auckland.
Kimarie Ramdhari, a licensing specialist, is on the global Microsoft Academy for College Hires development programme.
WORKPLACE WORK & LIFE AWARD – HIGHLY COMMENDED
TOMORROW’S WORKFORCE AWARD
34 | management.co.nz | NOVEMBER 2010
EXPORTING
New frontiers in
the GulfNew Zealand companies need to look at the
United Arab Emirates as an export destination, say Richard Cathie and Mark Brown.
For those who have not visited
the country, the United Arab
Emirates (UAE) is likely to be
an unknown quantity – similar
to an Arabian epic novel of noble men
in fl owing robes, picturesque desert and
perhaps the odd camel.
For those who have cursory knowl-
edge of the UAE, its signifi cant oil and gas
reserves and Dubai’s recent debt troubles
may be the fi rst matters that come to
mind. Whatever camp they fall in, New
Zealand businesses looking for new
markets may not get too excited about
either the grand fi ction or the narrow
view of the UAE.
But New Zealand business should get
excited. The UAE is a country on a massive
development path that has every intention
of becoming an economy of importance.
With the recent announcement by
the Minister of Foreign Affairs, Murray
McCully, that New Zealand is to open
an embassy in the United Arab Emir-
ates it would appear the New Zealand
Government agrees. The announcement
follows the trade delegation to the UAE
in April this year, one of the largest trade
missions ever sent from New Zealand to
any country.
Trade statistics certainly support the
case for the new embassy. According to
Statistics NZ’s “Global New Zealand – In-
ternational Trade, Investment, and Travel
Profi le”, exports of goods to the UAE in-
creased 140 percent between 2005 and
2009 and the UAE went from our 29th to
21st largest export market. Indeed, of the
top 21 countries that New Zealand exports
to, as at 31 December 2009, the UAE, Hong
Kong and Taiwan were the only countries
that do not have representation at an em-
bassy or, for Commonwealth countries,
high commission level.
So where do the export opportunities
lie? The answer to that question is, in short,
‘it depends’.
The UAE is a federation of seven
Emirates governed by its 1971 Constitu-
tion. The Constitution divides power
between the Federal and Emirate govern-
ments leaving each Emirate wide scope
to operate its economy. Consequently,
the economic focus of each Emirate is
different. A comparison of Abu Dhabi
and Dubai, the two largest economies,
provides an illustration.
Abu Dhabi has outlined its economic
blueprint in a policy document – Abu
Dhabi Economic Vision 2030 (imagine
starting with a blank piece of paper and
then detailing the creation of an economy
from the beginning with suffi cient budget
to fulfi l every ambition).
One focus of future economic growth
is on promoting industries that have
high barriers to entry. With 90 percent
of the UAE’s oil and gas wealth it can
afford to invest where most other coun-
tries cannot. For example, it is investing
US$10 billion in creating an aerospace
manufacturing facility and US$3.4 bil-
lion in establishing a global high-tech
semi-conductor business.
Abu Dhabi is also spending more than
$500 billion on construction projects –
building everything from a railway system,
roads, and power plants to commercial and
residential dwellings.
In comparison, Dubai has focused on
tourism, fi nance and logistics, its unoffi cial
goal to become both the Hong Kong and
Singapore of the Middle East/North Africa
region. Dubai’s success with tourism is
the biggest advertisement for the UAE’s
economic growth – many will know of
or have fl own with Emirates Airlines, the
Dubai-owned carrier, sponsor of a myriad
of sports teams and one of the few airlines
to have generated a signifi cant profi t dur-
ing the global downturn.
Dubai also owns the third largest ports
terminal operator (DP World) and its
NOVEMBER 2010 | management.co.nz | 35
airport is now the fourth busiest interna-
tional airport in the world with plans to
increase capacity to 160 million passengers
over the next growth period. Contrast this
to Heathrow, the current busiest with 66
million passengers in 2009. This growth
has occurred from a practically nil base
since the early 1980s. While Dubai’s much
publicised debt concerns are a matter of
worldwide record, internally it is viewed
as a speed bump (albeit a signifi cant one)
on the path of economic growth.
These descriptions of the two largest
Emirates illustrate the size of opportunity
in the UAE. Yes, the numbers are very large,
but New Zealand exporters are used to ex-
porting to large and complex markets, for
example, the US or more recently China.
The entire country is capacity building at a
micro and macro level – so if your business
has goods or services that can contribute
then it should fi nd a market here.
To date, New Zealand’s exports to
the UAE have been from our traditional
strengths where comparative advantage
lies. Primary products constituted 84 per-
cent of the exports in 2009. Milk powder
exports, comprising almost 50 percent,
increased 115 percent between 2008 and
2009 alone. With continuing UAE eco-
nomic growth and good management by
the existing exporters further increases will
no doubt continue.
However, Kensington Swan, which has
been operating in the region for the past six
years and opened its Abu Dhabi offi ce in
January this year, sees niche opportunities
on a regular basis. For example:
• Water conservation is a crucial issue as
fresh water reserves are being depleted,
problems of overuse occur and the
country needs to rely on desalination
and recycling.
• Farming is promoted by the govern-
ment but occurs in a desert environment.
Accordingly, it requires expertise to assist
with the promotion of farming in a more
sustainable way.
• The Federal government has introduced
new energy-effi ciency standards which
will require a substantial upgrade to air-
conditioning systems.
• New Zealand wine is greatly under-
represented in the hotels, which are per-
mitted to sell alcohol in all of the Emirates
except Sharjah.
Thus far, the export of New Zealand
education services to the Gulf market has
been a big success story.
To add some trans-Tasman rivalry
into the mix – the Australians are here
(they opened their embassy in Abu Dhabi
10 years ago), and in force. There are a
number of Australian organisations and
exports that are highly visible – from the
writers’ casual observations. Australian
beef is cheaper and more visible than New
Zealand beef in supermarkets. Combine
this with plenty of expats working in infl u-
ential positions in government SOEs, Aus-
tralians have become highly regarded.
Such is the opportunity, we would
expect more New Zealand organisations
to consider the UAE as an export destina-
tion. Indeed the opening of our embassy
in Abu Dhabi may be a precursor to more
New Zealand fi rms looking to do good
business in the region.
Of course, there are particular issues
a business must face before entering
the UAE market and without thorough
market research there can be challenges.
Understanding the challenges is vital for
New Zealand fi rms hoping for economic
success in the UAE and broader Middle
East region. For those New Zealand busi-
nesses seeking adventure it’s never too early
to start writing the fi rst chapter in their
Arabian novel. M
Richard Cathie is a senior consultant and Mark Brown
is an associate based in Kensington Swan’s Abu Dhabi
branch. www.kensingtonswan.ae
The city centre of Abu Dhabi is a busy commercial hub. The UAE is a country on a massive development path that has every intention of becoming an economy of importance.
EXECUTIVE DRIVER
Of all the vehicles purchased
by New Zealand companies,
around 40 percent are leased,
but those involved in the in-
dustry are expecting business to boom
as companies place more emphasis on
effective use of capital.
In the US, more than 70 percent of
business vehicles are leased, says Mitchel
Booth, general manager for New Zealand
of GE Capital’s fl eet and equipment fi -
nance wing, so he believes there’s room
to grow.
“Capital is precious, so businesses
are looking for fl eet effi ciencies, in an
attempt to drive down costs and focus
on life-cycle management.”
Since the worst of the recession, the
car industry has experienced a notice-
able upswing, with Land Transport New
Zealand fi gures showing new car regis-
trations in the year to August 2010 up
13.8 percent on the same period in 2009.
While still behind new car registrations
for 2007 and 2008, this shows a positive
movement over last year.
Booth says since economic condi-
tions have tightened, there has been a
signifi cant upturn in leasing activity as
businesses gained more confi dence.
“However we believe
there may still be compa-
nies suffering from
the recent economic conditions, espe-
cially in light of the continuing issues
in Europe.
“Throughout the recent economic
downturn, many companies were more
interested in having the fl exibility of ex-
tending terms on their leases and reduc-
ing rentals than going to market. However
2010 has seen a shift in this stance with
Custom Fleet participating in a number
of new tender opportunities.”
He says the benefi ts of leasing over
buying include that there is no capital
outlay, just a monthly lease rate at a fi xed
rate that’s easy to budget for, no owner-
ship risks, one monthly tax invoice for
all vehicle-related costs, and often tax-
deductible payments.
One side effect of the falling fortunes
of many movers and shakers has been an
increase in smart European cars ending
up at auctions for a fraction of their
usual cost.
At a recent Turners prestige car auc-
tion, the list read like the ‘who’s who’ of
luxury motoring, says Graham Roberts
of Turners.
While company owners may be tight-
ening their belts and divesting them-
selves of high-value vehicles, in the fl eet
market there is also a continuing trend
toward smaller vehicles, says Booth.
“This started when fuel prices in-
creased and the urgency grew for busi-
nesses to become more sustainable,
though this was placed on hold at the
onset of the global fi nancial crisis in
favour of reducing costs.
“While there is a strong shift away
from large cars to medium and small,
new engine technologies and pricing
mean that the Commodore and Falcon
still have a place in the New Zealand
fl eet,” says Booth.
Whilst Toyota Corolla still holds the
top spot, closely followed by the Mazda
3, he says the company has noticed an
increased interest in the Suzuki Swift in
the small car space.
While the Government continues to
deliberate on its strategy, the industry is
not currently seeing a huge resurgence
in the ‘green’ theme, he says.
“Should legislation be introduced
to require offsetting for emissions, we
believe this interest will again increase.”
And the CEOs favourite car? “Eu-
ropean models are definitely in this
group, along with the higher-spec SUV
models.” M
Lease business boomingAs trading conditions remain unstable, more companies are
turning to car leases – and they’re buying smaller cars.
Mitchel Booth.
The Suzuki Swift.
36 | management.co.nz | NOVEMBER 2010
With more than 3,000 vehicles, the New Zealand Police has one of the largest fl eets in the country.
So when the management of this substantial fl eet was put out to tender, Custom Fleet was able to
successfully demonstrate outstanding fl eet management capabilities. As a result, Custom Fleet will
now be providing New Zealand Police with total fl eet management services until 2017.
As Stan Pope, National Manager for Procurement at New Zealand Police explains, “We’ve found that
Custom Fleet has been able to simplify the process, save us money and reduce our risk. They are able
to do this while also managing the more than 60 contractual supplier relationships that exist to provide
our nationwide service agent network.”
In New Zealand, we manage the fl eets of nearly 3,000 businesses, including more than 40 of the top
100 companies*. As part of GE Capital, we are one of the world’s leading fi nancial services and fl eet
management companies.
If you’re looking for a company with the experience and expertise to develop an integrated fl eet
management service, call Custom Fleet on 0800 4 LEASING (0800 453 274) or visit customfl eet.co.nz
* Top 100 companies sourced from Kompass Business Directory at 21 September 2010.
How Custom Fleet caught
the New Zealand Police.
BCG2 GEC0009/Police
GEC0001 CF Police Management.indd 1 11/10/10 5:08:38 PM
38 | management.co.nz | NOVEMBER 2010
VOICE / SOCIAL MEDIA
Social media isn’t necessarily about
going to a particular place. It’s
more about coming together, says
Louise Denver, the director of
corporate affairs and communications for
Deloitte Australia.
Denver is a social media expert who
will be in Auckland to speak at Social Me-
dia Junction, a conference in Auckland on
November 16 and 17.
She says networking through emails,
blogs, wikis, web, video and photo sites is
about connecting in a “new, more equal
and progressive way”.
“To be ‘best able to connect’ means to
move away from a destination mindset and
toward a distribution mindset, to be where
people are and to participate in a way that
speaks to them directly.”
To do that, says Denver, it means being
in people’s personal environments – Face-
book, MySpace, Linkedin, or Twitter.
Deloitte Australia embraced social
media in a number of innovative ways,
says Denver.
Towards the end of 2008, the fi rm’s
innovation team discovered Yammer.com.
“We signed on to what has since become
the best in-house sandpit available to
shape, value and develop a way of being
relevant to the fi rm as a whole.”
Like many ‘new ideas’, social media
had its own tipping point, says Denver.
It occurred in Deloitte Australia when
the Deloitte Digital CEO Peter Williams
put out a voicemail for staff to sign up to
Yammer and come up with videos and
tag lines for a new advertising campaign,
known within Deloitte Australia as the
Green Dot campaign.
Williams, says Denver, is a maverick
accountant with a presentation style akin
to Gordon Ramsey, and is consistently
voted one of the most inspiring partners
in the fi rm.
“Pete’s voicemail and the subsequent
input from the CEO and the chief market-
ing offi cer triggered more than a thousand
new members of Deloitte Australia to join
Yammer, form 38 groups and create 1184
original concepts, including videos.”
Yammer is now the firm’s micro-
blogging tool of choice and is used for
knowledge sharing.
“It fi rst started as a bit of an in-house
social chat room,” says Denver. “But it
wasn’t long before the imperatives of doing
business seeped into the conversation and
the teams started to pose questions and
solve problems. It has proved to be a great
way to seek input, test ideas and gather
feedback quickly.”
Yammer quickly gained momentum
and today more than 60 percent of Deloitte
Australia’s 5000 staff have signed up.
She accepts not every corporate will
embrace the technology immediately. “It is
a challenge for a corporate to get comfort-
able with the potential anarchy of social
media. To be able to balance permission to
speak out and reach out to each other and
to clients in a rich online channel, with all
the associated risks, isn’t easy.”
To control how the technology is used,
Deloitte Australia defaulted to one of its
seven key values, ‘empower and trust’,
says Denver.
“The counsel given to employees is
to understand the difference between the
personal and the professional, to be open,
honest and respectful, and as professionals,
to be responsible for both their own, and
the company’s, reputation.” M
• www.socialmediajunction.co.nz
Personal space invadersSocial media may start as an in-house social chat room, but it can turn into an amazing corporate tool, says Louise Denver.
Brenda Ward talked to the corporate networking expert.
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What employees sayA Deloitte Touche LLP survey in the US last year showed that:• 74 percent of surveyed employees say it’s easy to damage a company’s reputation on social media.• However, only 22 percent of companies surveyed have formal social media policies.• 61 percent of employees said that, even if their employers were monitoring their social networking sites, they wouldn’t change what they were doing online.• 49 percent said a company policy wouldn’t change how they behave online.
Louise Denver.
Professional development courses are now available in
subjects as varied as winning at offi ce politics, how to be an
entrepreneur, or overcoming a phobia of public speaking.
Brenda Ward reports.
Working in the real world
If you can learn about being a
manager, why shouldn’t you also
learn about being a fantastic public
speaker – or how to manipulate
the media. These are just a few of the
courses available around the country.
When asked to describe offi ce
politics, most people come up with
a long list of negatives, says Louisa
Walker, who teaches a two-day course
in offi ce politics at The Centre for
Continuing Education at The University
of Auckland.
“There are power plays, gossip,
competition, backstabbing, hidden
agendas, and outright sabotage,” she says.
Seeking power has become
considered ‘shady’ and intrinsically
immoral.
“But it is possible to harness power in
the service of higher goals,” says Walker.
“It is an important responsibility to
learn to gain and use personal political
NOVEMBER 2010 | management.co.nz | 39
NOVEMBER 2010
GUIDEPROFESSIONAL DEVELOPMENT
E D U C AT I O N & P R O F E S S I O N A L D E V E LO P M E N T P R O G R A M M E S
power as a means to positive and
principled ends.”
She says in any organisation, offi ce
politics really refers to the informal ways
that things get done and her course
teaches business people how to work
within that structure.
For more information about Walker’s
course, contact Anne Cave on 09 373 7599
ext 89541 or email [email protected].
THE NEW ZEALAND educational
system is ill-suited to producing
the entrepreneurs the country so
desperately needs, according to
business development adviser and
author, Daniel Batten.
Batten, who runs a seminar series
for business start-ups, says: “Most SME
business people I come across do not
suff er from a lack of information, but
lack of application, and they still try to
solve their business’ most challenging
problems by getting more information.
“Yet maybe they should trust
that they already have a wealth of
knowledge that they just don’t use, and
look instead to what they can apply,
that they currently don’t?’
His seminars focus on topics such as
entrepreneurial infl uence and aim to
explain the communication mistakes that
entrepreneurs make that slow down their
business results. For upcoming seminars
see www.beyondtheceiling.com.
WHAT’S YOUR REACTION when
a journalist calls? Do you immediately
experience shallow breathing, does your
adrenaline start pumping and do you
imagine yourself like a possum in the
headlights when put under the media
spotlight? Or do you calmly run through
your check-list on how you need to
prepare for an interview and what you
want to say? Suzanne McNamara of
Convergence Communications runs
the University of Auckland Business
School’s short course on media training
and says many people fear the media,
whether it’s being misquoted or they
are just nervous at the thought of being
recorded on camera. “The good news
is there are media training courses
with a range of techniques designed
specifi cally to help you gain the
confi dence you need to represent you
and your company well.”
To fi nd out more visit www.conv.
co.nz, or contact Convergence
Communications on 09 638 8331.
MANY PEOPLE SUFFER from CDD,
‘confi dence defi cit disorder’, or from
glossophobia (a fear of public speaking),
says Sally Mabelle, president of the
National Speakers Association of New
Zealand. But it can be cured.
Mabelle, who teaches short courses
at the Centre for Continuing Education
at The University of Auckland, says there
are two basic emotions that keep us
from being confi dent and connected.
“The fi rst is shame. Were you ever told
you weren’t good enough, you shouldn’t
be a ‘tall poppy’ or a ‘skite’, or a ‘show-
off ’? We learned to pull our head in and
to not risk looking the fool.
“The other is arrogance. Did you
ever feel that you were just a little bit
better than other people, a bit less than
everyone or a bit more than everyone
else? Ideally we want to be right in the
middle.”
There are some very basic things
people can do to counteract the fears
and Mabelle runs through them in her
courses. For more information, call Anne
Cave on 373 7599 ext 89541.
NO MATTER WHO you are, you will
almost certainly need to deliver a speech
at some time in your life. Good speeches
are all about knowing how to connect
strongly with your audience, says Diana
Burns of Write.
“It’s after lunch on Friday – you’ve been
given the speaker’s death spot. How on
earth are you going to engage people
who seem to be sleepy, restless, or already
thinking of their fl ight home at 4pm?”
It’s natural to be nervous about making
a speech, says Burns, but learning some
key skills in speech writing and delivery will
help the nerves to disappear.
“You certainly won’t connect with
your audience by inundating them
with dense facts and fi gures. Yet that’s
precisely what many speakers do.
“The people listening to you need a
reason to listen to you. What’s in it for
them? What benefi t will they receive
from giving you their attention?”
Diana Burns is delivering a workshop
on speechwriting at The Centre for
Continuing Education at the University
of Auckland on November 19. For more
information call Anne Cave on 09 373 7599
ext 89541 or email [email protected]..
40 | management.co.nz | NOVEMBER 2010
It’s natural to be nervous about public speaking, says Write's Diana Burns.
NOVEMBER 2010 | management.co.nz | 41
CONFERENZ / BRIGHT*STAR
CONFERENCES & TRAINING
Conferenz and Bright*Star are NZ’s largest and most respected conference and training company brands. We have been providing conferences and training for NZ’s corporates and public sector for almost 30 years.
Owned by Steve Scott, Conferenz and Bright*Star are proudly NZ-owned and operated. We are also proud to play a signifi cant part in the NZ community through our charitable, environmental and sustainable initiatives.
Our goal is to provide your staff with high level, skill based training to help NZ organisations develop world class performance and best practice methodologies in business.
For a full list of training available please visit: www.conferenz.co.nz/training
PO Box 31 506, Auckland51 Apollo Drive, North Harbour, AucklandEmail: [email protected] Website: www.conferenz.co.nz Ph: 09 912 3616, Fax: 09 912 3617
KEY PERSONNEL• Steve Scott (Owner/Managing Director),
[email protected] • Michael Earley (Business Manager – Training),
027 448 2780, [email protected]• Mia Yee (Training Manager), [email protected]
AMENITIESAll training courses are offered in CBD locations, close to main transport hubs and accommodation facilities. Our courses are also available for in house training, on site for larger groups.
COURSESFinance for Non Financial Managers / Managing the Numbers: Financial Skills for Non Financial Managers SUITABLE FOR: All managers with limited fi nancial experience wanting to upskill. COST: $1795-$2095 + GST DURATION: 2-day short course: 10-11 November, Auckland; 15-16 November, Wellington; 28 February-1 March, Auckland; 22-23 March, Wellington; 28-29 June, Auckland; 23-24 June, WellingtonSPACES AVAILABLE: 25 maxKEY TUTORS: Susan Hansen, Kevin LeeFORMAT: Interactive mix of tutorial and case studiesDESCRIPTION: Finance for the Non Financial Manager is an in-depth and practical two-day course that demystifi es fi nancial concepts and provides tools for enhancing your effectiveness as a manager who is not left out of the game where fi nancial data and interpretation is concerned. The course covers fundamental issues within the accounting process in straightforward terms and explores the driving factors behind fi nancial information in a way that will help you use your fi gures more profi tably in the workplace.
Project Management EssentialsSUITABLE FOR: If you are involved in any kind of project, then this course is for you. If you operate in a project based industry, are a Project Manager, Team Leader, Marketing Manager, Technical Manager, Member of a Project Offi ce or want to become a Project Manager, this is a must-attend.COST: $1795-$2095 + GSTDURATION: 2-day short course1-2 November, Wellington; 1-2 June, Auckland; 28-29 June, WellingtonSPACES AVAILABLE: 25 max. KEY TUTOR: Rod Gill FORMAT: The emphasis is on a practical, easy-to-follow process rather than a rigorous theoretical approach. This intensive two-day training programme will combine tutorial sessions with practical examples and course workbooks will be detailed so that participants can duplicate what is demonstrated at the seminar, back at their workplace.DESCRIPTION: Including latest international trends and best practices in project management and for using MS Project.
This seminar has been designed to provide participants with an intensive two-day introduction to project management tools, techniques and methodologies. You will be taken through a project life cycle from project initiation to the close-out stage, with practical exercises reinforcing learning throughout.
Visit our Training Calendar to see our full range www.conferenz.co.nz
SAVE $300
SAVE $300Register and pay for any
February and March
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off the full price
With 150 executive training courses on offer, we have training to suit all professional development requirements
Management_Magazine.indd 1 4/10/10 3:23:55 PM
Continued on page 42
42 | management.co.nz | NOVEMBER 2010
Continued on page 44
Management Skills for New ManagersSUITABLE FOR: All new managers, or managers wanting to improve their management skills. COST: $1795-$2095 + GSTDURATION: 2-day short course7-8 March, Auckland; 21-22 March, WellingtonKEY TUTOR: Elaine McMeeking DESCRIPTION: Management Skills for New Managers offers immediately applicable, practical training on the crucial areas of people, project and time management. It aims to give new team leaders, supervisors and line managers the skills they need to improve their management styles. The course’s emphasis is on building high achieving teams, dealing with an increased workload and developing the assertiveness and confi dence necessary to be a competent business manager.
Clear Business WritingSUITABLE FOR: Anyone wishing to improve their business writing skills. COST: $1195-$1295DURATION: 1-day short course23 February, Auckland; 2 March, Auckland SPACES AVAILABLE: Up to 25KEY TUTOR: Coleen TroloveFORMAT: Mix of classroom, practical and case study exercises.DESCRIPTION: Clear Business Writing is a practical course aimed at helping you sharpen and tighten up your writing skills, ensuring every sentence in your business documents meet the requirements of your target audience in minimal time.
Contract Law For Non LawyersSUITABLE FOR: Anyone looking to gain an understanding of contract law.COST: $1795-$2095 DURATION: 2-day short courseSPACES AVAILABLE: Up to 25KEY TUTOR: Terry Reid (Australia) DESCRIPTION: Contract Law for Non Lawyers is an intensely practical guide through the essentials of contract law, exploring such details as when a contract will be required, when you have a contract (and don’t necessarily know it), what types of contracts exist and the effect of statutes on your contractual arrangements. It provides tips for understanding contractual material and looks at the traps and pitfalls of contracting and contract drafting.
Developing Assertiveness & Self Confi dence at WorkSUITABLE FOR: This training course has been designed for all those who want to raise their personal profi le, improve their assertiveness skills and increase self-confi dence at work.COST: $1795-$2095DURATION: 2-day short course10-11 March, Auckland23-24 February, WellingtonKEY TUTOR: Keith McGregorFORMAT: This intensive two-day training programme will combine tutorial sessions with
practical exercises and personality case studies throughout, allowing participants to gain fi rst-hand experience of assertiveness skills and techniques for increased confi dence. DESCRIPTION: Achieving successful working relationships with colleagues is not always easy. Many people fall into the trap of aggressive behaviour that results in antagonism. Others play a passive role and do not contribute with the confi dence that is needed to refl ect their talents. However, there is a balance where you can attain the best from colleagues, earn their respect and create a more constructive working atmosphere. By taking this middle-ground you can learn to be more assertive and project a confi dent, positive self-image.
INSTITUTE FOR STRATEGIC LEADERSHIP
The Institute for Strategic Leadership specializes in developing strategic leaders at the director, chief executive and general manager levels. It also supports these executives develop their high potential middle managers (levels 3 & 4).
PO Box 10553827th Floor, 188 Quay StreetAuckland Central 1010Ph: +64 9 366 1560, Fax: +64 9 336 1474Email: [email protected]: www.leadership.ac.nz
KEY PERSONNEL• Geoff Lorigan (Director), +64 21 337 643,
[email protected]• Lindsay Somerville (Programme Coordinator),
+64 21 848 159, [email protected]
AMENITIESPopulation of nearest main centre: 1.2 millionOther amenities available: Our programmes are residential; the Strategic Leadership Programme is held at Millbrook Resort in Queenstown and the Leadership Programme for High Potentials is held at Peppers Resort in Clearwater, Christchurch.
COURSESStrategic Leadership ProgrammeSUITABLE FOR: Directors, chief executives and general managers.COST: $15,900 + GSTDURATION / ENROLMENT: 6-day residential programmeSPACES AVAILABLE: 25 per programmeKEY TUTORS / FACULTY: Director, programme coordinator, executive coaches, and lifestyle coaches.FORMAT: On-campus, ExperientialDESCRIPTION: The 6-day intensive residential programme blends team-based learning with focused, one-on-one executive coaching. As a result, you’re able to hone your own innate
leadership abilities and potentially deliver a vastly more effective style of leadership.
Leadership Programme for High PotentialsSUITABLE FOR: Level 3 & 4 high potential executives.COST: $8900 + GST DURATION / ENROLMENT: 5-day residential programmeSPACES AVAILABLE: 25 per programmeKEY TUTORS / FACULTY: Director, programme coordinators and executive coaches.FORMAT: On-campus, ExperientialDESCRIPTION: This 5-day intensive residential programme invites you to refl ect on your current leadership style and learn how to develop your strategic leadership capabilities for more senior roles.
MASSEY UNIVERSITYMassey offers high-quality and industry-relevant study for anyone needing to upgrade their qualifi cations. Options include Graduate Diplomas, Bachelors, Post-graduate Diplomas, Masters and Doctoral degrees including the Massey MBA. Massey is New Zealand’s specialist and most experienced provider of university-level distance education; unparalleled in on and off-campus choice. Study options have been developed with busy professionals in mind.
• ALBANY CAMPUS: Albany Expressway, Albany, Auckland
• MANAWATU CAMPUS: State Highway 57, Palmerston North
• WELLINGTON CAMPUS: Wallace Street, Mt Cook, Wellington
Ph: 0800 MASSEY (0800-627 739)Email: [email protected]: www.massey.ac.nz
KEY PERSONNEL• Professor Lawrence Rose (Pro Vice-Chancellor,
College of Business) [email protected]
CERTIFICATIONCertifi cation agency: AACSB International, Association of MBAs (AMBA).
AMENITIESProximity to public transport: GoodPopulation of nearest main centre: Auckland 1.4 million, Palmerston North 80,000, Wellington 350,000Accommodation: Available on-site and locally. Other amenities available: Depending on campus – recreation centre, parking, child care, banking, bookshop, food outlets, library, students clubs, computer labs.
Conferenz / Bright*Star continued from page 41
Forever discoveringFFoorreevveerr ddddddddddddiiiiiiiiisssscccccoooooovvvvvvveeeeeeeeeeeerrrrrriiiiiiiiiiiiinnnnngggg
BU
FFA
LO/M
U19
63
Since 1972, Massey University has produced more MBA Graduates than any other University in New Zealand. “The Massey MBA impacted my advancement in the banking and finance industry enormously as the roles were not available to non-graduates. Outside my working life I think the diverse range of people and personalities I met helped me develop better interpersonal skills. I recommend the Massey University MBA course to anyone wanting to maximise their opportunities in life.”
Brent Knight, MBA (distinction)
MANAGING DIRECTOR/CEO, TOYOTA FINANCE NZ LTD
For more information call 0800 MASSEY or visit www.massey.ac.nz
Creating Leaders,
Transforming Business.
44 | management.co.nz | NOVEMBER 2010
Massey University continued from page 42
COURSESExecutive MBASUITABLE FOR: Executive and managers/owners (corporate, public sector, SME, not-for-profi t).QUALIFICATION: MBA COST: $32,000 plus national and international travelNZQA REGISTERED: Yes OTHER ACCREDITATIONS: AACSB, AMBAAVAILABLE: Part timePREREQUISITES: Preferably 7-8 years in employment with 2-3 years in a management role and with a tertiary qualifi cation; preference for degree holders; CV and interview required.SPACES AVAILABLE: 70 for start in March 2011FORMAT: Combination of on and off campus.DESCRIPTION: Students are enrolled in national cohorts with regional study streams available in multiple New Zealand locations. Structured tuition takes place every three to six weekends and in block mode over two years. The programme objective is to create senior generalist leaders.
Graduate Diploma in Business Studies (with endorsement)SUITABLE FOR: Business managers who either need a formal qualifi cation to enhance their career prospects, or those who simply recognise the importance of extending their knowledge of these essential business disciplines. QUALIFICATION: Graduate DiplomaNZQA REGISTERED: Yes. DURATION / ENROLMENT: 1 year full-time, 2-4 years part-time.AVAILABLE: Full-time, Part-time, Distance.PREREQUISITES: Programme entry requirements apply.FORMAT: On and off campus options.DESCRIPTION: This Diploma offers a concentration of endorsement papers similar to that obtained by students who graduate with a Bachelor of Business Studies with a major. Ideal for students with several years of experience in business but no formal qualifi cations.
Postgraduate Diploma in Business and Administration (with endorsement)SUITABLE FOR: Graduates in business or other disciplines wanting to enhance their existing business knowledge or develop skills in these areas.QUALIFICATION: Postgraduate DiplomaNZQA REGISTERED: Yes OTHER ACCREDITATION: AACSBDURATION / ENROLMENT: 1 year full-time, 2-4 years part-time.AVAILABLE: Full-time, Part-time, Distance.PREREQUISITES: Undergraduate degree and postgraduate admission.FORMAT: On and off campus options.DESCRIPTION: Non-business graduates can enhance their fi rst degree by adding a postgraduate qualifi cation. The fl exibility of Massey extramural (distance) allows students to balance study with full-time employment.
New Zealand Institute of Management Inc
LEADERS BUILDING LEADERS
NATIONAL OFFICEPO Box 67, Wellington 6140Level 9, Lumley House, 3-11 Hunter Street, WellingtonPhone: 0-4-473 0470, Fax: 0-4-473 0479Email: national_offi [email protected]: www.nzim.co.nz• Victoria Purdie, [email protected]
NORTHERNPO Box 6600, Wellesley Street, Auckland 1141DLA Phillips Fox TowerLevel 4, 209 Queen Street, Auckland 1010Freephone: 0800-800 694Ph: 0-9-303 9100Fax: 0-9-303 9109Email: [email protected]: www.nzimnorthern.co.nz• Kevin Gaunt FNZIM (CEO Northern)• Tania Bailey, [email protected]• Tait Grindley, [email protected]
CENTRALPO Box 11781, Manners Street, Wellington 6142Level 7, Lumley House, 3-11 Hunter Street, WellingtonFreephone: 0800-373 700Ph: 0-4-495 8300Fax: 0-4-495 8301Email: [email protected]: www.nzimcentral.co.nz• Karin Callaghan FNZIM FIPAA (CEO Central)• Susan Andrews MNZIM
[email protected]• Nick Patterson
[email protected]• Antony Zogg, antony_zogg@ nzimcentral.co.nz
SOUTHERNPO Box 13044, Armagh, Christchurch 8141307 Madras Street, ChristchurchPh: 03 379 2302Fax: 03 366 7069Email: [email protected]: www.managementsouth.co.nz• Joseph Thomas (CEO Southern)
[email protected]• Keith Walker
[email protected]• Lee Hughes
SNAPSHOT OF COURSESNZIM Diploma in Front Line ManagementSUITABLE FOR: Co-ordinators, team leaders, supervisors.COST: NZIM members and corporate members $6500 +gst; Non members $7500 +gstAVAILABLE: Full-time, part-time. All NZIM regions.SPACES AVAILABLE: 16KEY TUTORS: Richard Miller, Jim Young, Tony Brindle, Barbara MorrisFORMAT: Workshops and post workshop assessment.DESCRIPTION: This Diploma is designed to enhance your overall business and management acumen and ability. NZIM Dip.FLM – Superior business results.
NZIM Diploma in Project ManagementSUITABLE FOR: Individuals who are involved in project management and want a qualifi cation.COST: NZIM members and corporate members $7000 +gst; Non members $8000 +gstDURATION: 8 days over 9 months.AVAILABLE: Full-time, part-time. SPACES AVAILABLE: 16KEY TUTORS: Jim Young, Steve Bridges FORMAT: Workshops and post workshop assessments.DESCRIPTION: NZIM Diploma in Project Management (Level 5) will provide you with the skills and applied knowledge for effective management of projects in a wide range of contexts.
Advanced Management ProgrammeSUITABLE FOR: Those in senior leadership or management or aspiring to move into senior positions.COST: $19,995 +gst DURATION: Two x 2 week segments commencing 19 June 2011AVAILABLE: Full-time SPACES AVAILABLE: 25KEY TUTORS: World class international faculty.FORMAT: Seminar style in hotel setting.DESCRIPTION: AMP takes a holistic view of leadership offering an invaluable opportunity to spend time with an international faculty exploring individual and organisational excellence.
NZIM Diploma in Management Advanced (Level 6) SUITABLE FOR: Managers preparing for senior roles.COST: NZIM members and corporate members $9500 +gst; Non members $10,500 +gstDURATION: 12 monthsAVAILABLE: Part-time, Independent studyPREREQUISITES: More than fi ve years management experience.SPACES AVAILABLE: 16KEY TUTORS: Willem Knibbeler, Richard MillarFORMAT: Workshops and post workshop assessmentDESCRIPTION: The NZIM Diploma in Management Advanced programme is an innovative, comprehensive programme designed to extend and
NOVEMBER 2010 | management.co.nz | 45
develop the potential of key managers and leaders within an organisation.
NZIM PUBLIC PROGRAMMES AND CUSTOMISED TRAINING & CONSULTANCY NZIM offers over 1000 workshops nationally and has over 50 years of experience in building management capability in New Zealand. NZIM regional training centres in Northern, Central and Southern offer training programmes to cater for the broad spectrum of managers – from Directors and CEOs to team leaders and frontline managers. Programmes range from half-day seminars to one-month residential. These include NZQA approved qualifications from level 4 to level 6 including courses such as the Diploma in Health and Safety Management (Level 6), NZIM Managerial Excellence (Level 6) and National Certificate (Level 4). NZIM also offers 1, 2, or 3-day programmes covering a wide range of requirements including executive development, operational management, sales and marketing, financial fundamentals and a wide range of essential business skills.
NZIM develops customised learning solutions which support organisational development and change. We partner with some of New Zealand’s leading organisations, to deliver high quality learning programmes, designed to meet specific organisational needs; these range from 2-hour learning sessions to half-day seminars to year-long qualifications.
WHAT SETS NZIM APART?NZIM is a registered Private Training Establishment and a not-for-profi t organisation with a proud history dating back to 1946. • Facilitated by experienced practitioners • “Learning by doing” is the philosophy • Workshop participant numbers are restricted to
ensure individual learning • An interactive environment where participant
input is encouraged and welcomed • Up-to-date workshop content and
comprehensive workbooks and reference manuals provided
• Qualifi cations registered on the framework• Work with ITOs to gain funding.
PHILOSOPHYNZIM training and development programmes are at the forefront of management development today, developing the leaders and managers of tomorrow. NZIM can offer learning opportunities to people wanting to acquire new skills and knowledge in a world with no guaranteed career paths and emphasis on self-development and self-direction. NZIM studies overseas trends, monitors research and keeps a watchful eye on business development and techniques in order to offer a range of diverse programmes and services.
All these courses and other relevant information can be found on our website www.nzim.co.nz
OPEN POLYTECHNIC As New Zealand’s specialist provider of open and distance learning, we offer fl exible study options for nationally and internationally recognised certifi cates, diplomas and degrees. Fit study around your life and open a world of possibilities.
Private Bag 31914, Lower Hutt 50403 Cleary Street, Lower Hutt 5011, WellingtonPh: 0508 650 200Email: [email protected]
AMENITIESOpen Polytechnic services, including the Library, Online Campus and Student Support, are available online to all Open Polytechnic students in New Zealand and worldwide.
COURSESBachelor of BusinessQUALIFICATION: BBusNZQA REGISTERED: Yes DESCRIPTION: With a Bachelor in Business from Open Polytechnic you can major in Management, Human Resources, Information Services and Technology and Accounting.
P R O F E S S I O N A L
CONTACT US NOW to discuss our Compass course,
an 8 day course to further develop the foundation
skills required for success in the workplace. This is
especially designed for 20-30 year old employees:
How to work effectively with others
to get the best result
Develop the quality and confidence
of your decision making
Find new and innovative ways to
deliver results in your role
Take ownership of your role.
0800 OUTWARD (688 927) email us [email protected]
www.outwardbound.co.nz/professional
WHAT THEY DIDN’T TEACH YOU AT WORK
Continued on page 46
46 | management.co.nz | NOVEMBER 2010
New Zealand Diploma in BusinessQUALIFICATION: NZDipBusNZQA REGISTERED: Yes DESCRIPTION: The New Zealand Diploma in Business is a nationally recognised, broadly based business qualifi cation which will qualify you for entry into a wide range of business careers.
Graduate Diploma in Strategic ManagementNZQA REGISTERED: Yes DESCRIPTION: The Graduate Diploma in Strategic Management is designed for people wanting to improve their skills, knowledge and attitudes to develop their ability to think and manage strategically.
Graduate Diploma in Human Resource ManagementNZQA REGISTERED: Yes DESCRIPTION: The Graduate Diploma in HR Management is designed for people wanting to focus on the human resource area specifi cally in order to be able to participate effectively in an HR function within an organisation.
OUTWARD BOUND TRUST OF NEW ZEALAND
PO Box 35274, Panama Street, WellingtonPhone: 0800-688 927, Fax: 0-4-472 8059Email: [email protected]: www.outwardbound.co.nz/professional
KEY PERSONNEL• Shane Wratt (Account Manager),
[email protected]• Trevor Tayor (CEO),
COURSESNavigator LeadershipSUITABLE FOR: Emerging and existing leaders, managers and infl uencers.COST: $3,556 +GSTDURATION / ENROLMENT: 8 daysSPACES AVAILABLE: 14 per programmeFORMAT: 30% classroom; 70% experientialDESCRIPTION: Building leadership skills in individuals so they can make a difference in their organisation. Focus on managing self, managing relationships and influencing others. Integrates 360 workplace feedback and expert facilitation.
Compass (NEW)SUITABLE FOR: 20-30 year old employees (eg graduates, apprentices, and others this age). COST: $2,226 +GSTDURATION / ENROLMENT: 8 daysSPACES AVAILABLE: 14 per programmeFORMAT: 30% classroom; 70% experientialDESCRIPTION: Finally, an eight day course for your 20-30 year old employees. This new course focuses on developing teamwork skills and confi dence in the workplace. Decision making, initiative, responsibility and communication are key themes for this popular new course.
Team Building and Custom Design SUITABLE FOR: Organisations, teams & work groups.COST: From $260 - $460 /person/dayDURATION: 1- 21 daysDESCRIPTION: We deliver many custom design courses for businesses throughout New Zealand. We are particularly good at delivering for teams of group managers who represent various business units or regions. Idyllic setting (Marlborough Sounds), talented facilitators, amazing experiences and lasting outcomes. Date options are often limited so early contact with us is recommended.
Discovery Personal DevelopmentSUITABLE FOR: 27+ year-old employees COST: $1,930 +GSTDURATION / ENROLMENT: 8 daysSPACES AVAILABLE: 14 per programmeFORMAT: 100% experiential
PROJECT PLUS LTDPO Box 10515L5, 44 Victoria Street, Wellington 6035Ph: 04 495 9100, Fax: 04 495 9109Email: [email protected]: www.projectplusgroup.co.nz
KEY PERSONNEL:• Iain Fraser (Group Managing Director),
021 479 301, [email protected]• Karen Clarke (GM, NZ Operations),
021 790 790, [email protected]
• Anita L’Estrange (Training Coordinator), 027 255 0706, [email protected]
CERTIFICATIONRating: ISO 9001Certifi cation agency: BVQI
• NZQA Registered as a Private Training Establishment (PTE).
• Registered Education Provider (global status) with the Project Management Institute (PMI®).
• Preferred Supplier to many organisations in NZ and UK.
• Public Training Schedule available at www.projectplusgroup.co.nz.
• Range of formal project management certifi cation programmes also conducted including our successful NZQA based Certifi cate Series.
• All workshops and study programmes can be run in-house and be customised to meet your organisational needs.
For close on 20 years Project Plus has maintained a passionate focus on our clients’ strategic success. Our training & certification workshops encompass all aspects of project-based management through portfolios, programmes and projects. Our range and diversity of learning options is one of the largest in the world and is delivered globally. We continue to develop our product range to meet market needs. Our facilitators are highly experienced business leaders, seasoned practitioners as well as adult training facilitators and thus provide learning and education that betters global smart practice.
COURSESExecutive Skills ProgrammeSUITABLE FOR: Level 1-3 leadersDURATION/ENROLMENT: Refer to websitePREREQUISITES: Interest in governance of project-based initiatives and in management of change.FORMAT: Facilitated dialogue in classroom setting. Some online elements.DESCRIPTION: Designed for busy executives and senior leaders who require oversight on portfolio and/or programme management. Choose from 4 distinct workshops that are business-based and designed to allow for optimal learning.
Specialist Skills ProgrammeSUITABLE FOR: Level 2-4 leadersDURATION/ENROLMENT: Refer to websitePREREQUISITES: An understanding of benefi ts that a project-based approach provides to the achievement of strategic objectives.FORMAT: All classroom and facilitated dialogue.DESCRIPTION: The learningproducts within this programme provide a wide range of options that allows for advanced knowledge and skills to be gained. Allows individuals to increase their contribution to their organisation through increased benefi t.
Continued on page 48
Outward Bound continued from page 45
Join our online meeting room at: www.takecontrol.ac.nz
48 | management.co.nz | NOVEMBER 2010
GRADUATE SCHOOL OF ENTERPRISE
At The Graduate School of Enterprise at The University of Auckland Business School we believe strongly that executive business education involves both profes-sional and personal development. Engagement in our graduate programmes provides an extraordinary learning opportunity for every individual as a decision maker and leader.
All our graduate programmes are designed to develop people for emerging decision-making roles whether they are self-employed, building a new busi-ness, managing in a small to medium-sized enterprise, employed in a large corporate, employed in not-for-profi t agencies or in the public sector.
Our programmes begin by ensuring that you capture the fundamental disciplines of business study; you then build on these disciplines so you can think at advanced levels; and then apply such advanced thinking to decision making in complex real-world situations. You are exposed to learning in the company of other accomplished business and professional people, a peer network that demands high performance and which will benefit you throughout your career.
Private Bag 92019, Auckland12 Grafton Road, AucklandFreephone: 0800-227 337, Fax: 09-373 7063Email: [email protected]: www.gse.auckland.ac.nzwww.mba.auckland.ac.nz
KEY PERSONNEL• Peter Withers (Director of Academic
Programmes)• Donovan Breunig (Programme Manager)• Alison Craig (Programme Manager)
AMENITIESProximity to public transport: GoodPopulation of nearest main centre: 1.4 million (Auckland)
COURSESThe Auckland MBA™SUITABLE FOR: Those in executive management positions.QUALIFICATION: MBAOTHER ACCREDITATIONS: Association of MBAs, EQUIS and AACSBDURATION / ENROLMENT: One year part-time after successful completion of the Postgraduate diploma or equivalent qualifi cation.AVAILABLE: Part-timePREREQUISITES: Includes Postgraduate Diploma in Business in Administration or equivalent qualifi cation and interview with selection panel.FORMAT: All on-campus at Grafton Road.DESCRIPTION: The Auckland MBA offers an intense, challenging experience for individuals
seeking to move into the top levels of general management. It is designed to integrate knowledge of the functional areas of business into the overall management process and to further develop decision-making and leadership skills into a range of management contexts.
The New Zealand Executive MBA™SUITABLE FOR: Senior level executives with an average of 15 years’ work experience. QUALIFICATION: MBAOTHER ACCREDITATIONS: AMBA, EQUIS and AACSBDURATION / ENROLMENT: Two years part-time in block courses fortnightly on Fridays and Saturdays.PREREQUISITES: A strong fi rst degree or a PG Diploma in Business, plus several years’ full-time management experience. Applicants will be personally interviewed.FORMAT: All on campus at Grafton Road. DESCRIPTION: The emphasis is on the enhancement of thinking and high value decision making. The NZ Executive MBA attracts senior infl uencers and decision-makers from throughout New Zealand. It is an intense and demanding learning environment, focusing on peer dialogue and interaction facilitated by practitioner teachers with extensive academic backgrounds and business experience.
Master of ManagementSUITABLE FOR: Those in, or aspiring to, senior line management positions.QUALIFICATION: MMgtDURATION / ENROLMENT: 2 years part-timeAVAILABLE: Part-timePREREQUISITES: Postgraduate Diploma in Business or equivalent qualifi cation.FORMAT: All on-campus at Grafton Road.DESCRIPTION: The Master of Management is a challenging advanced degree that requires students to integrate research and evidence based management practice. The degree is at the forefront of business education and refl ects current international trends toward best practice based on empirical evidence.
Postgraduate Diploma in BusinessSUITABLE FOR: Those in, or aspiring to senior management positions or self employment.QUALIFICATION: Postgraduate Diploma in BusinessDURATION / ENROLMENT: 2 years part-timeAVAILABLE: Part-timeFORMAT: Campus at Grafton Road.DESCRIPTION: The Postgraduate Diploma in Business is specifi cally designed as a gateway to the Auckland MBA™and Master of Management programmes. It provides a solid grounding in general management skills and modern business practice. Graduates are recognised for their broad knowledge and versatility by employers in both the public and private sectors, in New Zealand and overseas. Options within this programme are Business Administration and (subject to numbers) Maori Development, Human Resource Management, and Health Management.
THE UNIVERSITY OF AUCKLAND BUSINESS
SCHOOLSHORT COURSES
The University of Auckland Business School offers nearly 300 2-day practical business and management Short Courses each year in four locations throughout New Zea-land, as part of its commitment to “lifting the competency of the nation”. These Short Courses provide business and professional people from all walks of life opportunities to up-skill and re-skill. With over 40,000 people having attended a Short Course since 1996, they are well proven. Short Courses also deliver an ever-growing number of In-house courses and Customised Programmes which are delivered specifi cally for an organisation, when they want and where they want, with the option to have the courses tailored specifi cally for that organisation. The University of Auckland Business SchoolShort CoursesPrivate Bag 92019, Auckland 1142Freephone: 0800-800 875, Fax: 0-9-308 2369Email: [email protected]: www.shortcourses.ac.nz
KEY PERSONNEL• Darren Levy (Director), [email protected]• Lisa Hosker (Course Advisor)
[email protected]• Emma Sullivan (Operations Co-ordinator)
AMENITIESProximity to public transport: GoodAccommodation: Available locally and at a reduced rate for attendees
COURSESProject ManagementCOST: $1895 + GSTDURATION / ENROLMENT: 2 daysPRESENTER: Rob VerkerkOn campus or in-house
Negotiation SkillsCOST: $1995 + GSTDURATION / ENROLMENT: 2 daysPRESENTER: Doug RobertsonOn campus or in-house
Managing PeopleCOST: $1895 + GSTDURATION / ENROLMENT: 2 daysPRESENTER: Nick ReadOn campus or in-house
NOVEMBER 2010 | management.co.nz | 49
Marketing ManagementCOST: $1995 + GSTDURATION / ENROLMENT: 2 daysKEY TUTORS: Steve BridgesOn campus or in-house
Infl uencing and Persuading SkillsCOST: $1895 + GSTDURATION / ENROLMENT: 2 daysPRESENTER: Roseann GedyeOn campus or in-house
Strategic PlanningCOST: $1895 + GSTDURATION / ENROLMENT: 2 daysPRESENTER: Bryan TraversOn campus or in-house
Motivation and LeadershipCOST: $1895 + GSTDURATION / ENROLMENT: 2 daysPRESENTER: Dr Lester LevyOn campus or in-house
Business skills for New ManagersCOST: $1995 + GSTDURATION / ENROLMENT: 2 daysPRESENTER: Doug RobertsonOn campus or in-house
Finance for Non-Financial ManagersCOST: $1995 + GSTDURATION / ENROLMENT: 2 daysPRESENTER: Susan HansenOn campus or in-house
Mental ToughnessCOST: $1995 + GSTDURATION / ENROLMENT: 2 daysPRESENTER: Jamie FordOn campus or in-house
Presentation SkillsCOST: $1995 + GSTDURATION / ENROLMENT: 2 daysPRESENTER: Roseann GedyeOn campus or in-house
THE UNIVERSITY OF WAIKATO
CENTRE FOR CORPORATE & EXECUTIVE EDUCATION
Private Bag 3105, HamiltonPhone: 0-7-838 4198 Freephone: 0800-800 891Fax: 0-7-838 4675Email: [email protected]: www.execed.ac.nz
KEY PERSONNEL• Dr Peter Sun (Associate Dean Enterprise)• Meshweyla MacDonald
(Associate Director Operations)• Andrew Buchanan-Smart
(Business Relations Manager)
CERTIFICATION• AMBA (International MBA accreditation, UK
based)• EQUIS (International business school
accreditation, based in Europe)• AACSB (International business school
accreditation, based in North America)• ISO 9001• The Waikato Management School is Triple Crown
accredited
COURSESMaster of Business Administration (MBA)SUITABLE FOR: Experienced middle managers, business owners, or functional and technical specialists looking to increase their general, strategic and leadership understanding of business. QUALIFICATION: Master of Business AdministrationDURATION: 2 years part-timeDESCRIPTION: The programme is designed to develop you as a value-based leader, and to show how you can increase your sphere of Infl uence. It is also designed to provide participants with a broad base of current practice and applied research. It is taught by leading academics and industry professionals from NZ’s No. 1 Business School (2007 PBRF Rankings). It prepares participants for real-world senior management and leadership positions in national and international organisations. The MBA includes an international study tour in Part II of the programme.
Master of Business and Management (MBM)SUITABLE FOR: Students with an undergraduate degree in any discipline. The 12-month fast track
programme requires a minimum of three years work experience. The 15-month programme is designed for those without any work experience. Please contact 0800 800 891 for more details on entry criteria. QUALIFICATION: Master of Business and Management DURATION: 12 months or 15 months (both full-time)DESCRIPTION: The programme provides a training in management that will complement your undergraduate degree and provide you with the core skills and knowledge required for a wide range of management and leadership roles in a modern economy. Signifi cant emphasis will be placed on refl ective learning, creative problem-solving and leadership placed in an international context.
Postgraduate Diploma in Management Studies SUITABLE FOR: Business owners, middle managers or technical specialists looking to improve their understanding of the functional areas of business.QUALIFICATION: Postgraduate DiplomaDURATION: Part-time over 1-2 years offered in Hamilton and Tauranga. Schedule depends on location. DESCRIPTION: The programme provides participants with a broad range of management skills and competencies. It is taught using an integrated approach with strong theoretical and practical components. Graduates of the programme are well equipped to improve performance in middle management roles through the use of strategic and value creation skills acquired in the programme.
Customised Corporate ProgrammesSUITABLE FOR: Managers and executives in medium to large organisations.QUALIFICATION: Can be designed with Postgraduate Certifi cate or Diploma options.FORMAT: Combination of workshops, action learning, work-based projects, simulations & assessment.DESCRIPTION: The new “L3” leadership programme has the capability to meet an organisation’s expectations in developing Tomorrow’s Leaders. It is about ‘Leading Self and Others’ where legitimacy to lead is conferred to those leaders who lead by value. It is about ‘Leading Ambidextrously’ which focuses on the rate and complexity of change and what new avenues have to be explored and what existing processes and practices have to be exploited, where ‘Leading Strategically’ requires leaders to set the right strategic directions and to provide clarity where there is complexity. Finally an ‘Action Research Project’ which focuses on “defi ning organisational issues” and gives an ROI to the organisation. We partner with medium to large organisations to create tailored modules, intensive programmes or ongoing executive development initiatives. Our customised programmes ensure a balance between the development needs of the individuals involved while delivering value to
Continued on page 50
50 | management.co.nz | NOVEMBER 2010
the organisation. These programmes have been tried, tested and proven by some of New Zealand’s largest
organisations. Contact us to discuss your needs.
Postgraduate Certifi cate in Business Research
SUITABLE FOR: MBA or Masters graduates who
wish to undertake advanced business research or
proceed to doctoral study.
QUALIFICATION: Postgraduate Certifi cate
DURATION: 10-12 months part-time
FORMAT: Combination of on-campus delivery and
online support.
DESCRIPTION: A comprehensive programme that
explores quantitative and qualitative research
methodologies and provides an excellent
understanding of the principles and techniques
associated with advanced business research.
UNIVERSITY OF CANTERBURY
COLLEGE OF BUSINESS AND ECONOMICS
The University of Canterbury is ranked within the top 200 universities in the world. In 2006, the College of Business and Economics celebrated the centenary of NZ’s oldest Bachelor of Commerce degree and 2009 marked the 25th anniversary of UC’s internationally ac-credited MBA programme. UC is committed to offering you the opportunity to gain an internationally recognised qualifi cation with courses underpinned by leading-edge research in a vibrant learning environment.
College of Business and Economics, Private Bag 4800, Christchurch 8140Commerce Building, Corner of Arts and Forestry Roads, University of Canterbury, Ilam, ChristchurchPhone: +64 3 364 2316, Fax: +64 3 364 2745Email: [email protected] Website: www.bsec.canterbury.ac.nz
KEY PERSONNEL• Professor Nigel Healey
(Pro-Vice-Chancellor and Dean of Commerce,), +64 3 364 3113, [email protected]
• Dr Peter Cammock (MBA Director), +64 3 364 2657, [email protected]
• Associate Professor David Fortin (MBM Director) +64 3 364 2987 ext 7026, [email protected]
PROGRAMMESUniversity of Canterbury MBASUITABLE FOR: Experienced professionals looking to develop their general management skills and to build a foundation for a lifetime of leadership.COST (*2011 fees, subject to change in 2012, GST inclusive): New Zealand citizens and permanent residents: NZ$30,000*. International candidates: NZ$45,340*. Does not include the application fee (NZ$60) or acceptance fee (NZ$600).QUALIFICATION: MBAACCREDITATION: Association of MBAs (AMBA)Duration: 15 months full-time, 21⁄2 to 5 years part-timePREREQUISITES: Minimum of 5 years relevant work experience, undergraduate degree. International applicants need to provide IELTS/TOEFL and GMAT scores.SPACES AVAILABLE: 35KEY TUTORS / FACULTY: Dr Peter Cammock, MBA DirectorFORMAT: On-campus (Christchurch)DESCRIPTION: UC’s internationally accredited, world-class MBA programme places emphasis on the development of responsible leadership founded on sound business acumen, a strategic perspective and innovation. The programme supports individuals who want to make the transition into signifi cant and contributing leadership roles.APPLICATIONS CLOSE: 26 November 2010
Master of Business Management (MBM)SUITABLE FOR: Graduates from non-commerce disciplines looking to learn how to effectively apply their existing knowledge within a business or management context.COST (*2011 fees, subject to change in 2012, GST inclusive): New Zealand citizens and permanent residents: NZ$7,210 per year*. International students: NZ$19,095 per year*. Does not include the application fee (NZ$60) or acceptance fee (NZ$250).QUALIFICATION: MBMNZVCC CUAP REGISTERED: YesDURATION: 2 years full-time, up to 5 years part-timePREREQUISITES: An undergraduate degree with at least a B grade average in 300 level courses. International applicants need to provide IELTS/TOEFL scores.SPACES AVAILABLE: 45Key tutors / faculty: Associate Professor David Fortin, MBM DirectorFORMAT: On-campus (Christchurch)DESCRIPTION: UC’s MBM programme provides management knowledge that will complement your existing undergraduate degree in Science, Engineering, Arts, Education or Law. You will explore contemporary issues relevant to industry professionals and it is the ideal stepping-stone for those looking to transition into, and advance within, the global business environment.APPLICATIONS CLOSE: 13 December 2010
Graduate Diploma in Business Administration (GradDipBA)SUITABLE FOR: Technical and professional people looking to develop their leadership and management abilities. The GradDipBA is particularly suitable for those who do not have an undergraduate degree as it provides a pathway to the UC MBA programme.COST: (*2011 fees, subject to change in 2012, GST inclusive): New Zealand citizens and permanent residents: NZ$15,000*. International students: NZ$22,670*.Does not include the application fee (NZ$60) or acceptance fee (NZ$600).QUALIFICATION: GradDipBANZQA REGISTERED: YesDURATION: 8 months full-time, 20 months to 4 years part-timePREREQUISITES: Minimum of 5 years relevant work experience, undergraduate degree (those without an undergraduate degree may be considered in consultation with the MBA Director). International applicants need to provide IELTS/TOEFL and GMAT scores.SPACES AVAILABLE: 35KEY TUTORS / FACULTY: Dr Peter Cammock, MBA DirectorFORMAT: On-campus (Christchurch)DESCRIPTION: The GradDipBA is designed to enable busy professionals to continue their learning and development while remaining in full-time employment.APPLICATIONS CLOSE: 26 November 2010
VICTORIA UNIVERSITY OF WELLINGTON
Victoria University provides high quality learning ex-periences from university preparation courses through to post experience study and ongoing professional development for people in business.
We are located in the central business district of Wellington, literally across the road from Parliament and adjacent to the major business and public sector organisations of Wellington and the city’s shopping and entertainment precincts.
PO Box 600, WellingtonCampus 1: Kelburn Parade, Kelburn, WellingtonCampus 2: Rutherford House, 23 Lambton Quay, Thorndon, WellingtonPhone: 0800 VICTORIA (0800 842 867) option 2Fax: 0-4-463 5193Email: [email protected]: www.victoria.ac.nz
KEY PERSONNEL• Jeff Ashford (Manager, Professional and
Executive Development), [email protected]• Linda Walker (Senior Administrator, Post
Experience Programmes), [email protected]
The University of Waikato continued from page 49
Continued on page 52
Are leaders defined by hierarchy? Is leadership about power or is it about influence? Leaders of tomorrow will influence through values rather than hierarchy. We offer you an opportunity to develop as a value laden leader, and an opportunity for personal growth and enrichment.
Why settle for ordinary? Why not transform your future with a University of Waikato MBA? Programme commences April 2011.
For more information phone 0800 800 891, email [email protected] or visit execed.ac.nz
Is the big chair yournumber one focus?
KTD1756H/10/10
“I really appreciated the lecturers’ strong emphasis on
practical experience, and I found I was applying my learning
in my work environment pretty much all the way through.
From an employer’s perspective I was providing a return on
investment from day one.”
Miles McConwayGroup Manager, Environment BOP
52 | management.co.nz | NOVEMBER 2010
COURSESProfessional and Executive Short CoursesSUITABLE FOR: Courses are targeted at different levels from senior leaders to those aspiring to improve their work skills. COST: Varied DURATION: Most are one or two-day programmes. SPACES AVAILABLE: Short course programmes are usually for groups of 15-20. KEY FACULTY: Professional and executive short courses are offered by a wide range of faculties from across the university. FORMAT: Day workshops, interactive learning and onsite coaching. DESCRIPTION: A wide range of practical and relevant professional development short courses are offered by the Professional and Executive Development team at Victoria University. Topics include management and leadership; public policy; people and performance; finance; project management; workplace communication; marketing; the role of the Treaty of Waitangi and Maori culture in business and more.
Certifi cate in Management StudiesSUITABLE FOR: Those currently employed in an administrative or managerial role who wish to maximise their all-round managerial skills and/or accelerate career progress.QUALIFICATION: CertMSNZQA REGISTERED: YesDURATION/ENROLMENT: A comprehensive 9 month, two trimester programme.AVAILABLE: Part-timePREREQUISITES: At least three years appropriate practical experience in a managerial or administrative role, and satisfy the programme director that you have the necessary ability and commitment to successfully complete the programme.FORMAT: Lectures are held in the evening, to make it easy to integrate study with full-time employment.DESCRIPTION: The course combines theoretical perspective with practical applications. The
course work focuses on group exercises and project teamwork. This provides a supportive and collegial atmosphere which enables you to tap into the collective knowledge of other participants who come from a wide range of backgrounds.
Postgraduate Diploma in Business Administration
Postgraduate Diploma in Human Resource Management
Postgraduate Diploma in MarketingSUITABLE FOR: Those currently employed in a managerial or senior administrative role who wish to maximise their all-round managerial skills and/or accelerate career progress.QUALIFICATIONS: PGDipBA, PGDip HRM, PGDipMktDURATION/ENROLMENT: A comprehensive 18 month, four trimester programme. PREREQUISITES: Qualified for admission to a degree or award of a postgraduate diploma from a New Zealand university, or produced evidence of extensive practical, professional or scholarly experience of an appropriate kind, or completed the requirements for the Certificate in Management Studies with an average of B or better across all four courses, and satisfy the programme director that you have the necessary ability and commitment to successfully complete the programme. Candidates who have met the requirements for the Certificate in Management Studies will gain credit for the equivalent courses in the Postgraduate Diploma.FORMAT: Lectures are held in the evening, to make it easy to integrate study with full-time employment. The programmes feature a variety of interactive learning activities, including group discussions, workshops, seminars and project teamwork.DESCRIPTION: The course combines conceptual thinking with practice maintaining a strong practical focus, so you’ll be able to put everything that you learn to good use in the ‘real’ business world.
Master of Business AdministrationSUITABLE FOR: The MBA at Victoria is a
prestigious stamp of success and a fitting challenge for those planning on going to the top in management. QUALIFICATION: MBA NZQA REGISTERED: Yes ACCREDITATION: AMBA DURATION/ENROLMENT: 16 months full-time or up to 32 months part-time. PREREQUISITES: Undergraduate degree and or demonstrated managerial experience and impressive work history, subject to interview with director together with admissions test, and English language requirements for international students. FORMAT: Lectures are held in the evenings and are supported with a commitment to class discussion and debate. All courses involve 24 hours teaching contact time. Learning interaction includes working after class in study groups and completing applied projects and assignments based on real business organisations. Students are also required to attend six days of professional development from a selection of weekend workshop topics including: executive presentation skills, cross-cultural management, leadership, academic skills, career management and job search skills, stress management skills, and coaching skills. These workshops are designed to develop lifelong career skills and enhance career opportunities upon completion of your study. DESCRIPTION: The Victoria MBA meets the needs of both public sector and private sector managers, producing graduates with conceptual depth and the ability to integrate theory and practice over a wide range of managerial situations.
For professional and executive short courses, see our website for a full listing of courses. www.victoria.ac.nz/profdev
Professional and Executive Development programmes can be customised to meet your organisation’s specifi c needs and objectives. Meet with our programme advisors to develop a customised programme to suit your organisation’s development needs. Email [email protected] or ph 0-4-463 6556.
For Certifi cates, Diplomas and the Master of Business Administration, see our website for a full listing of courses. www.victoria.ac.nz/mba
Email [email protected] or ph 0-4-463 5367.
Victoria University Of Wellington continued from page 50
Keep ahead of the times… NZ Management readers can now also receive weekly updates on the latest in management thinking, trends and practices within New Zealand and globally through Executive Update, a weekly e-newsletter sent to your In Box every Friday.
If you’re not receiving Executive Update and would like to join its growing database of thought leaders email [email protected]. For advertising enquiries or more information contact Clara Iqbal at [email protected] or phone (09) 271 3711 or 021 930 887.
tttes on the latest int ieslahens oteaaland and globally lbld lybaglodandlououur In Box every Friday.y. daFrryevoxBIu
oooin its growing gwiros gioi..nzzn .. zzzzIqbal attl abI or 021 930 887.7880921r
EXEC HEALTH
NOVEMBER 2010 | management.co.nz | 53
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.
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.
There’s no doubt that putting
our health under the micro-
scope can be uncomfortable.
However, there’s plenty of
evidence that momentary discomfort
can prevent ongoing health problems,
hospitalisation or even save your life.
Many of us associate going for a
medical check up with being ill. But for
some life-threatening illnesses, physical
symptoms may only appear at a very
advanced stage. In fact, what many
people don’t realise is that in a third of
cardiovascular disease cases, the first
symptom is death.
That’s why taking time out for a
thorough heath check, assessment or
‘warrant of fi tness’ might be the best de-
cision you ever made. A comprehensive
health assessment will not only check for
lumps, bumps and anything ‘out of the
ordinary’, but will also include a discus-
sion of the lifestyle factors that may pose
a risk to your future good health.
There are enormous benefi ts from
switching our focus from treatment
to early intervention and preventative
measures.
A 2006 study found that 31 percent
of admissions to Christchurch Hospi-
tal in 2003 were potentially avoidable.
Examples included lung disease, cervi-
cal and breast cancer, cardiovascular
diseases, early detection and excision
of melanomas, and effective glycaemic
control in people with diabetes.
However, there are instances when
serious illness, such as cancer, can strike
even those with the healthiest of life-
styles. For many cancers, early detection
dramatically improves survival rates.
For women under 50, regular screening
reduces the chance of developing breast
cancer by around 20 percent. Between
ages 50-65, this rises to 30 percent.
Bowel cancer is New Zealand’s
second biggest cause of cancer-related
death – in part because it is most often
not detected until an advanced stage.
Yet if discovered early, the survival rate
is around 80 percent.
We spend a good portion of our wak-
ing hours in the workplace, so it makes
sense that lifestyle changes in this envi-
ronment can have a signifi cant impact
on our health. What’s more, research
has shown that healthier employees are
more engaged in their work, have fewer
absentee days and are more productive.
But where do you start? Options for
health and wellness initiatives are many
and varied – from something as simple as
a weekly yoga class to more comprehen-
sive long-term programmes. However,
more than ever, employers need to see a
clear return on investment – not simply
in monetary terms, but in the time and
goodwill invested by staff.
That’s why one of the best places to
kick off is by offering a health check.
The baseline data gathered from the
fi rst health check will enable employees
to monitor progress towards their own
health goals. Over time, employers can
track this data against measurements
such as staff engagement surveys, pro-
ductivity levels or absentee days to
monitor whether the investment in a
healthier workforce is also providing a
healthy return for the business. M
Peter Tynan is chief executive of Southern Cross
Health Society.
A look under the hood‘Prevention is better than cure’ is one of the oldest, yet most
important, sayings in the health book, says Peter Tynan.
54 | management.co.nz | NOVEMBER 2010
M BOOKCASE
The right CEO for the jobTHE CEO’S BOSS: Tough Love in the BoardroomBy William M Klepper • Columbia Business School
Publishing • RRP: $54.95
The dynamic between company
directors and the CEO is a crucial
part of an organisation’s success,
as they share responsibility
for driving it to success and
profi tability (or failure and
legal action). But, sometimes,
dysfunctional relationships between the
two are due to factors that could have
been quickly controlled and corrected, says
executive educator William M Klepper.
One question that can be asked after
the high-profi le failure of Lehman Brothers
during the global fi nancial crisis is: where
was the board? In the wake of this travesty,
where a board let its CEO linger on too
long in power when all the signs were red
fl ags, Klepper analyses the functions of
boards – and when they should step in.
He spends some time on what he calls
the ‘social contract’ that exists between the
two, off ering examples of successful credos
that result in transparent and productive
partnerships. Then comes the fun.
Tough love, says Klepper, is a board’s
job. You need to match the needs of the
company with the right leadership, and if
there isn’t a match, the board needs to step
in – and fast.
Behavioural styles are the key to knowing
if the CEO has the right skills to manage
this business at this time, he says. He argues
that companies progress in stages and the
driving and entrepreneurial
styles of leadership that
work for a start-up may
not be the right skills as a
company moves through
an S-curve to a ‘rising
success’ stage, to a growing
(middle) stage, then on to
peak success.
He uses case studies
many will have heard of to
illustrate the pitfalls of board complacency.
At Coke, Doug Ivester was seen as a natural
successor to Roberto Goizueta, as his No
2, but no one realised their skills were
complementary and they needed each
other. The board was shocked to fi nd
Ivester wasn’t a clone for his boss’ skills and
had never been groomed for the job. He
had to go.
At JetBlue, brilliant young founder
David Neeleman rocketed his new airline
into the US aviation stratosphere, but he
realised his skills weren’t right to take the
company to the next stage of growth
and when the board confronted him
about it, they jointly agreed he would be
replaced as CEO.
Matching the organisation’s needs with
the skills of the CEO is the key to successful
board/CEO relationships, says Klepper.
He off ers many useful insights in this
brutally honest look at how boards should
function. – Brenda Ward
PREPARING FOR TAKE-OFFBy Bruce Russell • Wired Internet Group • Free on
request
Either this is
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ploy or it’s the
best free book
I’ve ever read.
Starting a
car is as easy
as turning the
key and hearing the motor start. Using a
website should be the same, argues ‘user
experience’ consultant Bruce Russell.
This guide to getting a return on your
online investment is a smart little hardcover
book that explains so many things you
wondered about.
Like: Why should your IT department set
up your website? “Managing information
online is not actually about computers, it’s
about communicating clearly, purposefully
and eff ectively.”
Like: Why maintain two diff erent sets of
business information – one for customers
and one for staff (your intranet)?
Like: Why is TradeMe so easy to use
and other websites so hard? It’s because
TradeMe has an unbeatable user
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If you’re about to set up or relaunch a
website, this is a book you need to read.
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FEBRUARY 2011SPECIALFEATURES
NOVEMBER 2010 | management.co.nz | 55
M FOCUS
The Agri-Women’s Development Trust’s Escalator programme was launched at Parliament on September 16: 1 From left, Agri-Women’s Development Trust members Sue Yerex, Mavis Mullins (Patron), Lindy Nelson (Chair) and Jane White with Agriculture Minister Hon David Carter.
The Independent Schools of New Zealand Excellence in Teaching Awards were held in Queenstown late August: 2 Award-winner Catherine Syms (left) of Diocesan School for Girls, Auckland, with Julie Carter of Distinction. 3 Award-winner Dr Jan Giff ney of St Cuthbert’s College, Auckland, with Janet Morgans-Lea of Spacifi c Yearbooks. 4 Award-winner Jill Pears of Selwyn House School, Christchurch, with Simon Higgins of Cambridge International Examinations.
The fi rst New Zealand Business Break-fast was held at the ArtHouse Gallery in Christchurch on September 13: 5 (Clockwise from left) Suzanne Baker (Even-tionz), Thomas Rummel (Emirates), Trish Scott (Confab Conference and Event Consultants), Suzanne Carson (Wedding Professionals and Conference and Event Professionals), Amanda Hall (Business Events Australia), Susan Lilly and Maria Gumina (Qantas), Liz Maxwell (ESP Ventures). 6 (From left) Amanda Hall (Business Events Australia), Liz Maxwell (ESP Ventures), Thomas Rummel (Emirates).
The EEO Trust ‘s Women on Boards
Getting Ahead seminar was held at the
Hyatt Regency Hotel in Auckland,
on September 24: 7 Anouska Longford (Eastern Quay) and Tofa Suafole Gush (CYFS).8 Fiona Shand (Shand & Associates), Janine Smith (The Boardroom Practice) and Giselle McLachlan (Clear Counsel) 9 Pam Elgar (Nexus), Tonia Cawood (Tonia Cawood& Associates) and Robyn Scott-Vincent (Attitude Pictures). 10 MP Pansy Wong and Hilary Sumpter (YWCA). 11 Robyn Galloway (Innovative Travel Company), Fiona Shand Shand & Associates), Denise Aldous (Women on Boards).
1 2 3
4
6
8
10 11
9
7
5
56 | management.co.nz | NOVEMBER 2010
M EXECUTIVE DEVELOPMENT
Sponsored by The University of Auckland Business School Short Courses www.shortcourses.ac.nz 0800 800 875
S H O R TC O U R S E Ss m a r t e r f a s t e r
CAse study 1
November7-12 COMPANY DIRECTORS’ COURSE.
Auckland. Institute of Directors.
www.iod.org.nz
8-9 MANAGING MULTIPLE PROJECTS.
Auckland. Conferenz.
www.conferenz.co.nz
8-9 PROBEM SOLVING AND
DECISION MAKING. NZIM Central.
www.nzimcentral.co.nz
8-9 BUSINESS CASE DEVELOPMENT.
Auckland. University of Auckland Short
Courses. www.shortcourses.ac.nz
8-9 PROJECT MANAGEMENT. Auckland.
University of Auckland Short Courses.
www.shortcourses.ac.nz
8-10 NEGOTIATION. Auckland. David
Forman. www.davidforman.co.nz
9 NOT-FOR-PROFIT GOVERNANCE
ESSENTIALS. Hamilton. Institute of
Directors. www.iod.org.nz
9 PROJECT PLANNING AND CONTROL.
Wellington. Project Plus.
www.projectplusgroup.com
9-10 PRACTICAL PEOPLE SKILLS.
Christchurch. NZIM Southern.
www.nzimsouthern.co.nz
10-11 SYSTEMS THINKING. Auckland.
University of Auckland Short Courses.
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10-11 UNDERSTANDING
ACCOUNTING. Auckland.
University of Auckland Short Courses.
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15-16 FINANCIAL MODELLING.
Auckland. Conferenz. www.conferenz.co.nz
15-16 MANAGING PEOPLE. Auckland.
University of Auckland Short Courses.
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15-16 LEAN THINKING. Auckland.
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15-16 BUSINESS MODELLING.
Auckland. University of Auckland Short
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16 GOVERNANCE ESSENTIALS.
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17 FINANCE ESSENTIALS. Wellington.
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18-19 DUE DILIGENCE. Auckland.
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NOVEMBER 2010 | management.co.nz | 57
MEXECS ON THE MOVE
Martin Smith, Sharon Grant, Evan MaysonGHD, a global
engineering,
architectural and
environmental
consulting company,
has appointed Smith,
previously general
manager of infrastructure at Manukau
Water, as business group manager for
Central-Southern NZ.
Grant joins GHD as
people manager; her
previous role was
manager – culture,
engagement and
diversity at the Bank of
New Zealand. And Mayson, who joined
GHD four years ago, is now business
group manager for Northern.
Justin BoyesHRV has appointed
Boyes to the newly
c r e a t e d p o s i t i o n of
general manager of
marketing. He has over
15 years’ experience in all
areas of marketing and promotions.
Quentin ChristieScientific software company
Biomatters has appointed Christie
as general manager. He brings over
15 years of senior management
experience in a range of international
ICT businesses, including Davanti
Consulting (a division of Gen-i),
Telecom, Telstra and Zeacom.
Paul BoshoffBoshoff joins HP New Zealand’s Personal
Systems Group (PSG) from HP’s South
African offi ce. Appointed as country
general manager, he replaces Brent
Kendrick who has transferred to HP
Singapore.
Pete BoyleIntellectual property law fi rm A J
Park has appointed Boyle as its chief
executive. A chartered accountant,
he has worked extensively as a
management consultant, was a
partner in the corporate fi nance and
management solutions team at Deloitte,
formed Acuity Partners and was most
recently group manager business
development of NZ Defence Force-
Defence Shared Services.
Andrew DonaldsonSmartpay has appointed
Donaldson as chief
fi nancial offi cer. Most
recently managing
director of Brightstar
New Zealand, his past
experience also includes
four years with Telecom New Zealand
and extensive experience in senior
management and fi nance roles in the UK
as well as New Zealand.
Albert Naffah Most recently MasterCard’s vice
president of strategy, business
development and corporate aff airs,
Naff ah has been promoted to country
manager New Zealand with overall
responsibility for corporate positioning.
of Travel Group, Market Gardeners,
Godfrey Hirst NZ, Skope Industries
and Scenic Hotels.
Bruce IrvineNew Zealand’s new ‘heartland bank’
has appointed Irvine as chairman of
the board of directors.
Building Society Holdings (BSHL)
is the new entity which will be the
listed holding company of the group
formed by merging Pyne Gould
Corporation (PGC), MARAC, CBS
Canterbury (CBS) and Southern Cross
Building Society (SCBS) into a new
New Zealand bank.
Irvine is chairman of PGC and its
subsidiaries, including MARAC and
Perpetual Trust. He is also a director
of listed companies Rakon and
PGG Wrightson, and a number of
private companies including House
Plan, Do, Sustain – The Essence of ChangeThe use of project-based management approaches to advance and
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www.projectplusgroup.co.nz
58 | management.co.nz | NOVEMBER 2010
M EXEC 10 TIPS
Better internal communicationsInternal communications is the lynchpin of your business’ employee engagement strategy, says Karyn Arkell, general manager of Acumen Republic.
It’s often diffi cult to measure the
impact internal communications has
on business performance. In tough
times this activity is often fi rst to go. As
the recovery gains momentum and job
opportunities return, retaining staff will
fast become a priority again, so it’s vital
that your internal communications gets
back on track. Here are some tips to
consider:
1Lead from the topEff ective communications need
senior managers’ commitment and
endorsement. A ‘vision statement’ is great
in theory, but behaviour is what counts.
Managers must behave consistently with
the ethos they promote.
2Remain transparent and genuine
Employees can typically sense when
changes are afoot. Keeping bad news to
yourself can lead to rampant speculation,
rumours and lost productivity. Be upfront
and warn employees of changes such as
layoff s, so they can prepare emotionally
and fi nancially.
3Know your audienceEqual opportunity regulations
should always be followed, but
you should anticipate the diff erent
needs and expectations of individual
employees before you communicate
with them. Consider who they are, the
level of information they have about
the subject and the context in which
they’ll be receiving the information – a
marketing manager may want diff erent
information from a diff erent channel
than a factory worker.
4Integrate internal and external comms
There must be a fi t between what you
are telling your staff and what you are
telling your customers, shareholders and
the public. Staff feel valued if they know
important company news fi rst – don’t
make them read about it in the local paper.
5Get staff feedbackSurveying staff and adding their
ideas into your programme is an eff ective
way to improve workplace culture. Staff
have a diff erent perspective to you and
they often know where the system
needs improving. Address any big issues
or problems upfront and don’t take
responses at face value – read between
the lines. Share the results with the team
to see if they think it has hit the nail on
the head.
6 Form a staff panelStaff panels that meet regularly
generate better ideas on improving
culture and communications than
one-off surveys. The panel should be
made up of a representative pool of staff
who agree to be surveyed occasionally,
complete questionnaires and attend
focus groups. This is cost-eff ective and
shows a long-term commitment to staff .
7Encourage freedom of speech
If you have an intranet or an internal
company blog, think of it as the
competition to the newspapers, blogs and
broadcast outlets that cover your company.
Employees should be encouraged to
constructively criticise via these mediums
without career consequences.
8Encourage use of new media
Facebook, Twitter or YouTube can open
the lines of communication between
employees and employers and create
a strong sense of community in a
workplace. Instead of blocking Facebook,
set up pages and groups to inspire
and engage your employees. This will
position you as a cutting-edge, caring
and fair enterprise.
9 Don’t ignore the grapevine
The water-cooler is a critical source of
employee reaction and emotion, so
if rumours start to circulate, listen to
them. Provide managers with Q&As for
important internal communications
announcements that they can use in
both informal conversations and team
meetings.
10 Remain consistentAvoid following fashion
and tinkering. If you try to improve
communications and then fail because
your messages are inconsistent or ‘token
eff orts’, your workplace will remain
unsettled. M
Karyn Arkell is general manager of Acumen Republic.
Karyn Arkell.
NOVEMBER 2010VOL 8 NO 5
The upsides of ageing – ‘from warrior to
wisdom’ – can give older boards distinct
advantages, Iain McCormick suggests.
Old dogs and new tricks
60 | THE DIRECTOR | NOVEMBER 2010
THE DIRECTOR
The average age of today’s US cor-porate director at a large company is about 60, according to research from executive compensation
fi rm Pearl Meyer & Partners and the Na-tional Association of Corporate Directors (NACD).
And 62 percent of non-profi t sector directors are 50 or more years of age, ac-cording to the Governance Index published by the information service BoardSource. A 2007 Korn/Ferry Board Study of 8000 directors in Asia Pacifi c, Europe and North America found that the average mandatory retirement age was 69 in Europe, while in North America the average mandated retirement was at age 72. So are the board-rooms of the world fi lled with directors who are past it, over the hill and well beyond their use-by dates?
It is well known that ageing causes de-terioration in a number of brain functions, particularly memory. There are many fac-tors that cause ageing brains to experience changes in their ability to retain and retrieve information. First the hippocampus is very vulnerable to age-related deterioration. It is a part of the limbic system in the brain that plays a range of important roles in long-term memory, so that can affect how well you retain information.
There is a loss of neurons with age, which can affect the activity of brain chemicals called neurotransmitters and their receptors. An older person often experiences decreased blood fl ow to the brain, which means less effi cient brain activity compared to that of a younger person. These changes can cause problems with brain functions.
The older person might have trouble remembering details of a show or movie they saw recently or directions to a new shop or restaurant. It might take them longer to recall names, faces, and locations, even if you’ve seen them before. They might get fl ustered if they have to pay attention to more than one thing at a time. Not only does memory deteriorate, but surely so do energy, enthusiasm and motivation?
These views refl ect a powerful myth that ageing is a process of steady and inevitable de-terioration and decline. Gene Cohen, director of the Center on Ageing, Health and Humani-
ties at George Washington University in his book The Mature Mind: The Positive Power of the Aging Brain suggests otherwise.
There are many older people who show poor cognitive ability, but Cohen suggests that is primarily due to diseases such as dementia, while the other major contributing factors are lack of mental and physical fi tness.
Drawing on a wide range of research into human ageing, Cohen suggests that as the healthy and fi t human brain ages, it goes through a series of developmental stages that bring highly valuable perspectives and insights to bear on issues. He suggests that there are four phases in ‘old age’:• Re-evaluation: This can take place any time between the mid-30s to the mid-60s,
where there is a realisation of mortality and reconsideration of life decisions. In the governance context, this phase often enables directors to think more about legacy issues, carefully managing balance sheet risk and taking a long-term perspective on growth and profi t. • Liberation: This stage often takes place between the mid-50s and the mid-70s, where the question is ‘If not now, when?’ as people experiment with new ways. Directors who have reached this phase are often more willing to forego ego issues and take smart risks to help develop new innovative products or services.• Summing up: This takes place from the late 60s through the 80s, where people seek to share, give something back and complete un-
NOVEMBER 2010 | THE DIRECTOR | 61
fi nished business. In this phase, directors can often thoughtfully focus on philanthropy and the setting up of foundations or other ways to encourage human and social development. • Encore: From the late 70s onwards, major life themes are re-stated and re-affi rmed. This last phase tends to have less relevance in the governance context.
Cohen suggests that there are a range of reasons why the older person can function very well. He fi nds that older brains can produce new brain cells to compensate for the death of some cells. The brain can also draw on underused areas, so compensating for the effects of ageing. Cohen suggests that the brain’s information processing centre achieves its greatest density and reach be-tween the ages of 60 and 80 years.
Here in New Zealand, we have clear local evidence of what Cohen is saying. There are a wide range of older New Zealand directors close to or in their 70s who have shown a remarkable ability to deal with highly complex and diffi cult issues.
These include:• Jim Bolger, who is still a very active chair of Kiwibank and has currently been grap-pling with issues such as capital raising for the bank.• Dame Margaret Bazley, chairperson of the NZ Fire Service Commission, registrar of the Pecuniary Interests of Members of Parlia-ment, a member of the Waitangi Tribunal, chair of the Fundamental Review of the Legal Aid System and recently appointed to chair of the commissioners who are to oversee Environment Canterbury and fi x the region’s signifi cant water issues.• Sir Tipene O’Regan, an eminent kauma-tua, academic and business leader, the fi rst assistant vice-chancellor (Maori) at the University of Canterbury.
Older directors often have different and interesting perspectives. This is so for John Groom, the 63-year-old deputy chairman of the not-for-profi t anti-violence NGO Man Alive. He uses the phrase “from warrior to wisdom” to describe the types of changes he has seen in directors he has known and worked with over the past decade.
Older directors are able to show ‘elder-ship’ – the wisdom that comes with age. Groom believes that they are better able to understand and constructively manage their negative emotions and more likely to emphasise the positive than their younger counterparts.
He feels older directors are better able to synthesise disparate or opposing views or sources and information and make construc-tive sense of them. These directors are more able to see the forest for the trees, to pull back from an idea or situation and see it in a broader context.
What can the ageing director do to keep up with the play? Cohen identifi es fi ve ac-tivities to sustain power, clarity and subtlety of mind, all of which are directly relevant to the ageing director.• Exercise mentally Many people see physical exercise as important, but exercis-ing mental abilities is just as important. With regular mental challenges such as dealing with complex governance issues, the individual is likely to remain alert and an effective problem solver.• Exercise physically This helps to main-tain bone density, muscle tone and weight and it also improves cardiovascular fi tness and brain functioning.• Take up challenging leisure activities Learning to play a musical instrument or painting can greatly improve mental function-ing. The 2009 international documentary I
Remember Better When I Paint is a fi lm about the positive impact of art and other creative therapies in people with Alzheimer’s disease. The fi lm shows the way creativity helps indi-viduals sidestep some of the affected areas of the brain caused by dementia disorders such as Alzheimer’s and how they can strengthen their imaginations through therapeutic art. An interesting YouTube video is available if you search on I Remember Better When I Paint.• Achieve mastery Cohen suggests that research on ageing has uncovered a key variable in mental health that he has called a “sense of control”. He indicates that from middle age onward, people who have a sense of control or mastery stay healthier than those who don’t. It appears that mastery can not only improve the mental state but also strengthen the immune system too.• Establish strong social networks Cohen claims that many studies have linked active social networking and connection to better mental and physical health and lower death rates. Older socially connected individuals en-joy signifi cantly lower blood pressure, which in turn reduces the risk of stroke and its resulting brain damage. They also have low stress levels, including less anxiety and depression.
So there’s no cause for concern if your board comprises mainly superannuitants. Older board members often have superior abilities to deal with complex interconnected issues.
As we grow older our brains mature and so do our knowledge, our emotions and our expressive abilities. Directors who look after themselves physically, emotionally and men-tally can make a very valuable contribution well into their 60s and 70s.
Iain McCormick PhD heads DirectorEvaluation.com –
www.directorevaluation.com.
Contact Carrie Hobson or Stephen LeavyAuckland OfficeT +64 (9) 379 2224 PO Box 362, Auckland 1140
Level 3, Shortland Chambers, 70 Shortland Street, Auckland 1140
Wellington OfficeT +64 (4) 460 5244
Level 16, Vodafone on the Quay, 157 Lambton Quay, Wellingtonwww.hobsonleavy.com
NOVEMBER 2010 | THE DIRECTOR | 63
It should have been a winner. Instead a company’s $69-million investment in new manufacturing facilities missed the target by a country mile. The targeted Net
Present Value was to have been $20 million. In the event with all the costs in, the NPV was just $500,000.
It’s just one of many unreported New Zealand horror stories that paint the perils of failing to do robust value analysis of capital expenditure (capex) proposals and business acquisitions. Simple accounting mistakes led to the downfall. Capital outlays were not ac-counted for in the correct period and interest costs during construction were overlooked. The company also ignored the cost of future “must do” upgrades.
Sadly, such oversights are common among New Zealand corporates. Management and fi nancial offi cers widely fail to objectively assess the real long-term costs of capital expenditure. So today, more than ever, directors must ask the hard questions management often does not ask itself.
Frankly, profi t and loss measures such as NOPAT, EBIT and EBITDA are not enough. They cannot track the true costs of capital expenditure because they ignore the cost of shareholders’ equity. Today, many companies are 20 to 40 percent geared and capex is often funded from retained earnings. And here’s the rub. Management typically assesses capex on a “business case” basis, using accounting
measures that show a lift to the bottom line. However, by failing to fully account for the cost of using shareholder funds, it risks destroying them in the process.
The lesson should have been learned back in 2000 when the ANZ Bank last put companies’ ERC (Economic Return on Capital) and EVA (Economic Value Added) under the microscope. Then Stock Exchange chairman Eion Edgar voiced concern that New Zealand’s 500 biggest companies had destroyed $6.5 billion in shareholder value in 1998 alone. A third had not even covered their cost of capital.
In 2002, in his book Corporate Govern-ance and Wealth Creation in NZ, ANZ head of regional investment banking Joseph Healy observed that CEO compensation and incen-tives are seldom aligned to the creation of EVA for shareholders. Fixing the problem was (and is) a top priority, he said, “because performance measures are encouraging executives to build bigger businesses – even if it means destroying shareholder wealth”. Clearly this is a funda-mental board responsibility.
Healy pinpointed poorly specified or non-existent return on capital objectives and failure to ensure capital was placed where it could produce the required returns. He also identifi ed an unwelcome dominance of ‘compliance based’ accounting and legal control over the rigorous economic thinking, risk taking and entrepreneurial fl air needed for business innovation.
In August 2002 NZ Management magazine highlighted the issue in a feature entitled How EVA exposes non-performers – Top executives destroy corporate wealth.
Many board members do not see their role
as challenging the value of capital investment
proposals. Yet systemised capex appraisal is
vital to creating shareholder wealth, argues
specialist consultant in the fi eld Tony Street.
Capex scrutiny crucial part of good governance
EFFECT OF STRATEGIC CAPEX REALLOCATION OF $2M/ANNUM ON EBIT AND NOPAT
EFFECT OF STRATEGIC CAPEX REALLOCATION OF $2M/ANNUM ON EBIT AND NOPAT
64 | THE DIRECTOR | NOVEMBER 2010
Detailing results surveyed by inter-national management consultants Stern Stewart, the article said that “when it comes to creating wealth for the companies that employ them, our top managers are not top performers”.
Martin Concannon, Stern Stewart’s then managing director Australasia, was quoted as saying, “the trouble is that while capital man-agement has become more popular in recent years, many businesses still treat shareholder funds as if they are free”. In the same article Kerry McDonald, Comalco’s CEO at the time, charged that “what’s lacking is effective management infrastructures – a lack of com-mitment to developing the tools, practices and processes that let good managers and leaders achieve the best results”.
Internationally, there is very clear evi-dence that good corporate governance achieves a triple win: it attracts capital; it increases the share price and it can reduce the cost of capital. It is a powerful risk manage-ment safeguard for shareholders. For example, a study by McKinsey & Co surveyed 200 insti-tutional investors. A stunning 75 percent said that good governance practices (commitment to shareholder value, majority of independent directors and transparent reporting) were at least as important as fi nancial performance when evaluating investments. It also found that institutional investors are willing to pay a premium for good governance – as much as 20 percent.
Having helped many New Zealand corpo-rates over the years, I have identifi ed a huge gulf between management and accountants in taking responsibility for implementing best practice systems to ensure an overall return from capex programmes. When preparing capex proposals, the need to evaluate alter-natives, test assumptions, fully assess risks
and carefully analyse true value often falls through a crack in the fl oor. Management also generally lacks motivation to put in place objective priority setting systems. With many prospective “must do” capital jobs to prioritise, they should have objective systems to ensure that ‘needs’ are met before ‘wants’. It’s a pity they don’t because shareholders and lenders would expect that systems – of world-class calibre – are used to allocate their scarce capex resources.
Amazingly, although capital investment is a make-or-break decision, management rarely rates it important enough to warrant software to systemise the appraisal process and thus guard against bad investment. The common approach instead is to plump for false economy by knocking together in-house spreadsheets – a
far cry from providing a robust capex infrastruc-ture. Normally built ‘on the fl y’, they are prone to errors – as occurred in the example at the start of the article.
The whole point of evaluating capital expenditure investment is to create sustainable shareholder wealth. Directors have a fi duciary responsibility, as agents for shareholders, to monitor management’s performance. Should deviations occur, the board is responsible for taking corrective action. Poor or even aver-age performance warrants confrontation. So at board level, social niceties must not take priority over the need for constructive debate and decision making.
A key function of the board is to provide
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the link between the providers of capital (shareholders) and the company offi cers who use that capital to create value (management). Shareholders invest their fi nancial resources to gain a return commensurate with the risks that they are taking. So directors must bear in mind that their primary objective is long-term prosperity of the company.
Shareholder value focused companies ac-cept the need to outperform the competition through a vibrant and sustainable competitive advantage. This needs to be combined with an innovation-based culture which anticipates market changes and rapidly exploits new opportunities. Innovation ensures enduring growth in shareholder value and therefore fi rst-rate strategic thinking is crucial. So board members must realise that strategy and share-
holder value is intrinsically linked.As an example, the graph on page 63 dem-
onstrates a spectacular compounding fi nancial impact where a company gains 20 percent better value from its $10 million per annum capital spend. It then uses the expenditure avoided to re-invest in ‘business case’ capex with three-year payback periods. By year eight, EBIT increases by almost $5.2 million per annum. This is an example of good growth through capex that magnifies shareholder wealth creation.
Tony Street is a director of Capex Systems (CSL) – a capital
planning consultancy and software development company.
(www.capex.co)
The need to evaluate alternatives, test assumptions, fully assess risks and carefully analyse true
value often falls through a crack in the fl oor.‘‘‘‘
The EEO Trust Work & Life Awards celebrate employers who lead the way in making the most of our increasingly diverse workforce. Their businesses are growing because their
employees are too. They look after the people they employ and create engaging environments where everyone thrives. On the 28th of October, the EEO Trust announced the winners.
SKILLS HIGHWAY AWARDWINNER
Liddell ContractingHIGHLY COMMENDED
Canterbury Spinners, Millennium Hotels
and Resorts, New Zealand Army
WORK & LIFE/DIVERSITY INITIATIVE AWARD
WINNER
The WarehouseHIGHLY COMMENDED
Chapman Tripp
WORKPLACE WORK & LIFE AWARD
WINNER
ANZ New ZealandHIGHLY COMMENDED
Microsoft New Zealand
WALK THE TALK AWARDWINNER
Henare Clarke of Downer New Zealand
TOMORROW’S WORKFORCE AWARD
WINNER
OMEGA
SUPREME AWARDWINNER
The Warehouse
Read their stories to find out how they are building flexible,
productive workplaces. www.eeotrust.org.nz
