B2B Magazine issue 112 February 2016 by B2B magazine

112 FEBRUARY 2016

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INTRODUCING CANBERRA LEGAL GROUP An exciting change to Canberraâ&#x20AC;&#x2122;s legal landscape (p.16)

INTERVIEW TIPS FOR THE INTERVIEWER Jim Roy, HAYS Regional Director (p.28)

Why is strata a distinct branch of the Australian property sector? Erik Adriaanse, National President SCA, explains (p.10) NEW: REAL ESTATE advice column from Maloney's Property (p.26) 10 things business owners should focus on for the start of 2016 Andrew Sykes, RSM (p.23)

COVER STORY (p.12)

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Empowering you to face the future with confidence. Finance Professional Symposium The RSM Finance Professional Symposium covers a broad range of topics which will help todays finance professional in your day-to-day work as well as developing and getting the most out of your staff. Hotel Realm, Canberra Thursday 10 March 7 Hours CPD For more information, please email canberra@rsm.com.au.

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PUBLISHER'S NOTE

10 YEARS ON … In 2016 we celebrate 10 years of publishing B2B Magazine. We have seen a lot in those 10 years and have many people, and businesses, to thank for their support during that time. First, some observations of changes in the publishing industry. The most obvious from my perspective is the rapid advance of technology both in the way B2B is produced and also in the way it is distributed. Large documents and images are sent and received at a click of a button and collaboration takes place in real time, from different locations, with both, clients and suppliers. Our printers have undergone a revolution in how they do business. Mainly through massive consolidation and also through the introduction of digital printing, availability of paper and expanded services. B2B Magazine is also more widely distributed and read than ever before. Thanks to Australia Post, we go directly to thousands of businesses each month. We go into cafés across the ACT and into Qantas lounges across Australia. But the biggest change has been our online presence. We have a content rich website at www.b2bmagazine.com.au and extensive social media coverage through Facebook, Twitter and LinkedIn. This will be a great year for B2B Magazine. We have many things planned to celebrate our first decade in publication. These include the introduction of a B2B Business Club and a range of products and services that will flow from this and a closer relationship between our print and online presence. This month’s cover story features Power Protect. This is a great business that ensures power quality and reliability to the region and beyond. Jason Marriott, and his team, service and maintain the big diesel generators that sit in basements for the day power cuts out and a backup is needed to kick in … but they do much more than this. A great company doing important work. Tim Benson, Publisher Send all comments to: editorial@b2bmagazine.com.au

Photos by Andrew Sikorski

11 COVER STORY POWER PROTECT: POWER QUALITY AND RELIABILITY

CONTENTS

26 INTELLECTUAL PROPERTY Unfair contract terms: new rights for Small Business by Arete Group

FEATURE 07 Flexible solutions to estate disputes by DDCS Lawyers 08 Throw out your stale Vision, Mission and Values and rediscover ‘the why’ of your business

by HorizoneOne Recruitment 10 Strata is a distinct branch of the Australian property sector by Tim Benson 16 Introducing Canberra Legal Group 18 Stress and resilience – change management in organisations by Dr Robert Holmes, RSM 20 Real estate agents - what is going on? by Sam Joel

COVER STORY 12 Power Protect: Power quality and reliability by Tim Benson ADVICE FROM THE EXPERTS 23 ACCOUNTING 10 things business owners should focus on for the start of 2016 by RSM

23 BOOKKEEPING 2016 – A New Year of Positive Thinking by Tailored Accounts

ISSN 1833-8232 LEGAL NOTICE

28 RECRUITMENT Interview tips for the interviewer: It’s not only the candidate who has to prepare by Hays Recruiting 28 SPORT Is LeBron worth $500 million to Nike? by YABBA.guru 30 STRATA MANAGEMENT Seek advice when investing ‘sinking funds’ by Vantage Strata 30 WEBSITES How to craft your digital strategy? by SYNAPSE Worldwide A2B: ASSOCIATIONS TO BUSINESS 32 CANBERRA BUSINESS CHAMBER ACT budget needs best bang for buck G2B: GOVERNMENT TO BUSINESS 34 CHIEF MINISTER'S MESSAGE Innovation statement to benefit CBR BUSINESS NETWORKING 36 B2B@Smiles Orthodontists Christmas Party 2015

24 BUSINESS LAW Credit risk in focus: the national innovation agenda by Bradley Allen Love Lawyers

37 B2B@Strata Community Australia ACT Christmas party 2015

24 BUSINESS SUSTAINABILITY Behavioural change in the workplace by Actsmart Business recycling. energy. water.

26 REAL ESTATE 11 tips for stress free investing by Maloney's Property

38 B2B@Care International 70 years 38 B2B@CBR Innovation 1st year

25 FAMILY LAW What is spousal maintenance? by DDCS Lawyers

EDITOR / PUBLISHER

PUBLISHED BY

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Tim Benson editorial@b2bmagazine.com.au 0402 900 402 02 6112 8175

Man Bites Dog Public Relations ABN 30 932 483 322 PO Box 4106 Ainslie ACT 2602 b2bmagazine.com.au

B2B Magazine advertising@b2bmagazine.com.au 0402 900 402 02 6112 8175

EDITORIAL ASSISTANT

PHOTOGRAPHY

DESIGN

Termeh Garmestani termeh@b2bmagazine.com.au 02 6112 8176

Andrew Sikorski: Art Atelier art-atelier.com.au

Kasra Yousefi kasra.com.au 02 61128195

Man Bites Dog Public Relations (‘MBD’) owns the copyright in this publication. Except for any fair dealing as permitted by the Copyright Act 1968 (Cwth), no part of this publication may be reproduced without the prior written permission of MBD. MBD has been careful in preparing this publication, however: it is not able to, and does not warrant that the publication is free from errors and omissions; and it is not able to verify, and has not verified the accuracy of the information and opinions contained or expressed in, or which may be conveyed to readers by any advertisement or other publication content. MBD advises that it accepts all contributed material and advertisements contained in this publication in good faith, and relies on various warranties and permissions provided to it by the persons who contribute material and/or place advertisements. Those warranties and permissions include that neither the material and/or advertisements are misleading, deceptive or defamatory, and that their use, adaptation or publication does not infringe the rights of any third party, or any relevant laws. Further, MBD notifies readers that it does not, nor should it be understood to endorse, adopt, approve or otherwise associate MBD with any representations made in contributions and/or advertisements contained in the publication. MBD makes no representation or warranty as to the qualifications of any contributor or advertiser or persons associated with them, and advises readers that they must rely solely on their own enquiries in relation to such qualifications, and be satisfied from those enquiries that persons with whom they deal as a result of reading any material or advertisement have the necessary licences and professional qualifications relating to the goods and services offered. To the maximum extent permitted by law, MBD excludes all liabilities in contract, tort (including negligence) and/or statute for loss, damage, costs and expenses of any kind to any person arising directly or indirectly from any material or advertisement contained in this publication, whether arising from an error, omission, misrepresentation or any other cause.

YOUR LIFE will be YOUR LIFE will be FULL OF CHALLENGES.

FULL OF CHALLENGES.

T H E R E ’ S N O AV O I D I N G I T. T H E R E ’ S N O AV O I D I N G I T.

But for every significant But for every significant P E R S O N A L C H A L L E N G E Y O U FA C E , P E R S O N A L C H A L L E N G E Y O U FA C E ,

navigate navigate T O A C H I E V E

WE CAN HELP YOU WE CAN HELP YOU Y O U R Y O U R

way way

T H R O U G H T H R O U G H

T O

A C H I E V E

AN OUTCOME THAT AN BOUTCOME THAT I S E S T F O R Y O U .

You only live once. You only live once. I S

B E S T

F O R

Y O U .

B U T W I T H T H E H E L P O F A D V I C E from B U T W I T H T H E H E L P O F A D V I C E from

YOUR LAWYERS ,, YOUR LAWYERS O N C E I S E N O U G H . O N C E

I S

E N O U G H .

6212 7600 www.ddcslawyers.com.au Lane, NewActon 6212 7600 Kendall www.ddcslawyers.com.au Kendall Lane, NewActon

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F E AT U R E

Flexible solutions to estate disputes By Phillip Davey

s previously noted in this column, disputes in relation to Wills are on the increase, particularly in cases where the deceased was in a second marriage or a de facto relationship. In such cases, it is not uncommon for a family provision claim to be made, either by the second spouse or by the children of the deceased. In some cases, the nature of the assets or the small size of the estate make it difficult to balance “adequate provision” for the party seeking further provision with the interests of other beneficiaries under the will. By way of example, consider the following scenario: The assets of the deceased comprise a house worth $400,000 and bank accounts worth $100,000; The deceased dies leaving a de facto spouse of 20 years and his two adult children from a prior relationship; The deceased’s last Will leaves the whole estate to his two children and makes no provision for the de facto spouse; The de facto spouse has lived in the house with the deceased for the last 20 years. She has nowhere else to live and no assets of her own to support herself; The de facto spouse has no children of her own; It is likely that the de facto spouse will need to move into a retirement village or residential aged care in the near future.

Societal attitudes generally support the idea that a person owes their spouse a primary moral obligation to make adequate provision for them after their death. In the scenario above, adequate provision has not been made for the de facto spouse and a family provision claim is likely to be made and will be successful. Faced with the scenario above, the Court may consider ordering provision for the de facto spouse from the estate but in such a way that the children are not ultimately deprived of their entire inheritance. Making provision in the estate available to the de facto spouse to meet her immediate needs does not necessarily mean that she should receive an absolute interest in the estate property. In order to meet her needs, and still preserve an inheritance for the children, the Court may consider making a Crisp order. A Crisp Order, named after the decision in Crisp -v- Burns Philp Trustee Company Limited, usually takes the form of an order from the Court that grants the applicant for provision a portable life interest in particular estate assets. Such an order allows the applicant to use the value of specific estate assets to secure appropriate accommodation and to meet ongoing maintenance needs. Using the scenario outlined above, a Crisp order may mean that the de facto spouse is able to stay in the house for as long as she needs and then, if required, use the value in the house to fund an accommodation bond

at a retirement village or aged care facility. Upon the death of the de facto spouse, the estate assets, whether the original house or the accommodation bond, may then be distributed to the children as was the testator’s original wish. The flexibility that Crisp orders offer parties seeking to negotiate or settle disputed wills matters, makes them worth considering, however, there can be traps. It is important that you get the right advice, whether you are seeking to make a claim for provision or whether you are required to defend a claim. DDCS lawyers provide specialist advice in relation to estate disputes and have a specialist team who are able to provide advice and assistance in all aspects of estates disputes. For further information, contact a member of the Estates Team at DDCS on 02 6212 7600.

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Phillip Davey is a partner of the firm. 18 Kendall Lane, New Acton, Canberra phone (02) 6212 7600 mail@ddcslawyers.com.au www.ddcslawyers.com.au

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Throw out your stale Vision, Mission and Values and rediscover ‘the why’ of your business By Simon Cox

n organisation’s Vision, Mission or Values have traditionally been a fairly static statement of intent sitting in a business plan or on a website page barely seeing the light of day. It is supposed to represent the central value of an organisations existence, but the words and intent often appears so generic or bland that the meaning and impact is lost on the average punter. Sometimes they are written as more of a marketing exercise to depict how an organisation wants to appear to external parties without taking into consideration how it impacts their people. The key to a successful and positive culture in the modern workplace is ensuring your people identify and believe in your “cause”. They need to be able to embrace your organisational strategy and find a real sense of purpose in their work. Engaging your people in the ‘why’ of your business is more crucial now than ever. If you underestimate the importance of ensuring your team is on the same page as your organisational values, you will probably find your workplace culture will go the way of the dinosaurs. Having recently completed a full revamp of HorizonOne’s ‘central tenets’ to reinvigorate the ‘why’ of our 8 year old business, we came across some really interesting things worth sharing: Your vision, mission and core values needs to feel ALIVE It is simple, if your team is not engaged with the why of your organisation they are probably only partially engaged in their role at best. We discovered early on in this process of reinvigoration that not one HorizonOne team member, myself included, could list more than 50% of our slightly clumsy, generic sounding core values. Less than ideal… • They must be memorable. They need to make an impact on the reader. If they are going to compete with the countless

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amount of information competing for space in your teams brain, they also need to be represented simply, succinctly and supported with an image that clearly reinforces the meaning. • The words need to make the reader ‘feel something’. They need to free of Corporate babble and buzzword bingoisms. • They need to be a living, breathing part of your organisational culture, revisited and updated regularly. Before we started the exercise, we did a lot of research and found there is no better example out there than recently floated Australian company Atlassian. Simple, relatable concepts that clearly state the founding values their business lives by. This is not a top down business decision – have your team help define who you are and where you are going! When we decided to reawaken our core tenets, we understood the key to success would be relatability and team engagement. So we didn’t mess around. We organised a whole of team facilitated day and in preparation did a lot of research to help develop the material necessary to form the nuts and bolts of who we are. We engaged a gun leadership facilitation expert Siebert Neethling who has helped organisations large and small delivering similar programs across the globe. It was a long exhausting day however with Seibert’s guidance and expertise as well as determination to nail it from our team, we have been incredibly happy with the end result. (to be published on our new website – coming soon!) Don’t stop at putting it on your wall…. After our new office refit in February our core values will be visible every single day. But that’s not enough. We will continue to highlight the importance of incorporating

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“If you underestimate the importance of ensuring your team is on the same page as your organisational values, you will probably find your workplace culture will go the way of the dinosaurs.” our Vision and Values into our day to day work. They will become instrumental for our internal recruitment process for new team members. It can be quite revealing to ask someone which value they identify the most with and why. It is a great way to discover what they are passionate about. We will be incorporating out values into performance reviews, internal awards program and including them regularly into internal training. Most of all we want our team to really believe in what our values mean and to talk about them – a lot! Does your team understand the ‘why’ of your organisation?

Sourcing talent is a science, not a sales game

Please contact Simon Cox, Principal Consultant / Director at HorizonOne Recruitment on 02 6108 4878 or simon@horizonone.com.au Level 1, 27 Torrens Street, Braddon www.horizonone.com.au

YOUR LIFE will be YOUR LIFE will be FULL OF CHALLENGES.

FULL OF CHALLENGES.

T H E R E ’ S N O AV O I D I N G I T. T H E R E ’ S N O AV O I D I N G I T.

But for every significant But for every significant P E R S O N A L C H A L L E N G E Y O U FA C E , P E R S O N A L C H A L L E N G E Y O U FA C E ,

navigate navigate T O A C H I E V E

WE CAN HELP YOU WE CAN HELP YOU Y O U R Y O U R

way way

T H R O U G H T H R O U G H

T O

A C H I E V E

AN OUTCOME THAT AN BOUTCOME THAT I S E S T F O R Y O U .

You only live once. You only live once. I S

B E S T

F O R

Y O U .

B U T W I T H T H E H E L P O F A D V I C E from B U T W I T H T H E H E L P O F A D V I C E from

YOUR LAWYERS , YOUR LAWYERS , O N C E I S E N O U G H . O N C E

I S

E N O U G H .

6212 7600 www.ddcslawyers.com.au Lane, NewActon 6212 7600 Kendall www.ddcslawyers.com.au Kendall B2B M AGA Z I N E.CO M . AU B 2 B I S S ULane, E 112 NewActon 9

F E AT U R E

Photo Kasra Yousefi

Strata is a distinct branch of the Australian property sector By Tim Benson

his is the clear message from the National President of Strata Community Australia, Erik Adriaanse (FCPA) (FPS). “The Australian strata sector is a separate branch of the property industry and shouldn’t be confused with the broader real estate and property sectors,” Erik stated. This statement is borne out with the rapid growth of Strata Community (SCA) Australia. SCA currently has more than 3300 members who oversee, or manage, properties worth around $1.2 trillion. It is also estimated that SCA members manage more than 1.5 million title lots throughout Australia. More than 26 per cent of all Australian dwellings are covered by strata or community title. So what is strata title? Strata title is an Australian innovation in property law that has been copied around the globe. Strata title allows individual 10

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ownership of part of a property (called a lot, and generally an apartment or townhouse), combined with shared ownership in the

“SCA currently has more than 3300 members who oversee, or manage, properties worth around $1.2 trillion. ” remainder (called ‘Common Property’ e.g. foyers, driveways, gardens) through a legal entity called the owners corporation — or body corporate, strata company or community association, depending on where you live and the type of scheme. “SCA was established four years ago to unify and strengthen the strata sector,” Erik said. In 2012 a company was incorporated with a view of becoming the governing body of the strata sector, overseeing state based

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chapters. Erik says this transformation will be completed in 2016. Erik was a founding SCA member, as well as ACT delegate from 2012, and was elected National President in 2014. “Our goal at SCA has been to unify the strata sector by linking property owners and managers with the suppliers of goods and services,” Erik explained. “I’m delighted to report that SCA is now a highly professional body that represents the broader strata sector.” SCA’s biggest achievements have been to achieve superior professional standards and education for the strata sector. “Thanks to SCA, our members now have government endorsed training through CPSIC,” Erik said. SCA has also been designing a Certificate III, Certificate IV and Diploma courses specifically for the strata industry, which will be significantly different from real estate courses.

F E AT U R E

One of the key tools to achieving these priorities is the implementation the following levels of SCA accreditation: LEVEL 1 – Accredited Strata Community Manager (ASCM)

Erik Adriaanse (FCPA) (FPS) National President and Director Strata Community Australia Limited

“There is a paradigm shift in Australia about how, and where, people live. There is a growing acceptance that you might not have a big backyard, a clothes line and a pergola.” “In the strata sector, we found the real estate courses focused too much on the property industry, in other words, buying, selling and rental. We now have two courses specifically for the strata industry,” Erik said proudly. “Now that we have a high standard of education and training, SCA members are well equipped to look after the strata sector.” The strata sector is certainly growing in Australia. There are more than 2.6 million strata lots across Australia equating to over 26 per cent of the population living in a strata dwelling. According to SCA, this figure will rise to 50 percent by 2030, bringing the total strata asset pool to more than $2 trillion.This is an important sector for Australia. “The strata sector is significant to the Australian economy through the enormous construction program associated with strata buildings and the ongoing goods and services that are required ” Erik outlined. According to Erik, SCA has set the following industry priorities: • • • • •

Enhance branding; Improve advocacy; Create new careers; Knowledge sharing; and Maintaining the standards of the profession.

• Minimum of two years’ SCA membership and adherence to the SCA Code of Conduct plus Completion of Cert. III in Strata Community Management or approved equivalent • Minimum of 24 CPD points acquired through attendance at ongoing professional development events in the preceding two years (minimum of 12 points per annum). LEVEL 2 – Certified Strata Community Manager (CSCM) • Minimum two years membership and adherence to the SCA Code of Conduct plus Completion of Cert IV in Strata Community Management or approved equivalent. • Minimum of 24 CPD points acquired through attendance at ongoing professional development events in the preceding 2 years (minimum of 12 points per annum). LEVEL 3 – Practicing Strata Community Manager (PSCM) • Minimum five years membership plus completion of Diploma in Strata Community Management and 24 CPD points through ongoing professional development over two years. LEVEL 4 Fellow Strata Community Manager (FSCM) • Existing Practising Strata Community Manager(PSCM) plus • Minimum of 15 years membership plus extensive record of service to the industry. “In the ACT, if you ensure that your strata manager is a member of SCA, then you can be assured that they also have the appropriate knowledge and accreditation,” Erik said. Erik says that SCA has also introduced an A100 ‘Introduction to Strata’ course from the USA (adopted for Australia). “This means that there is now a pathway for people who want to make a career in the strata industry,” Erik outlined. So why are Australians choosing a strata lifestyle? “The main reason of course is that, for many people, it is a more affordable way to get into the housing market,” Erik explained. He went on to say that strata title was also attractive for older people who want to

downsize or simplify their lives. “There is a paradigm shift in Australia about how, and where, people live. There is a growing acceptance that you might not have a big backyard, a clothes line and a pergola.” But back to Strata Community Australia. SCA is now the largest national representative organisation for the multi

“Our goal at SCA has been to unify the strata sector by linking property owners and managers with the suppliers of goods and services” billion dollar strata and community title sector in Australia. • As the peak body for the strata sector SCA provides: • thought leadership to the strata sector; • Ongoing professional education; • Government advocacy; • An enforced processional code of conduct for its members; and • Assistance with corporate governance issues. Erik says that SCA has a major role to play in the property, tourism and accommodation sectors. The Future of Strata Community Australia? SCA has achieved a lot in the last four years, but it is not resting on its laurels, with a strategic plan to grow membership and deliver more services to members. “We will be growing our Australian membership and setting up chapters in Singapore, and New Zealand in the near future,” Erik outlined. If you are associated with strata title as an owner, supplier or manager, then Strata Community Australia is for you.

Strata Community Australia Limited P +61 2 6209 1504 M+61 418 641 988 www.stratacommunity.org.au

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COVER STORY

If you have a building with a back-up diesel generator, it’s critical that this power source kicks-in when there’s an emergency. Your business must continue to operate without delay. Local company Power Protect, is helping businesses, and large organisations, to do just that.

ut Power Protect do far more than this. They supply and maintain the complete range of backup power products, including generators, Automatic Transfer Switches and Uninterrupted Power Supplies. Along with their backup power products they also supply and maintain Lightning Protection Systems, Harmonic

Filters, and Power Factor Correction. Together, these products ensure the electricity supply to a site is clean and reliable. Managing director of Power Protect, Jason Marriott, says we are in the business

UNINTERRUPTED POWER SUPPLIES (UPS) Providing power for just a few seconds, out to an hour or more, Uninterrupted Power Supplies range from the small ‘battery backup’ units, many are familiar with, to behemoths capable of supplying over one thousand amps to keep data centres operational while their generators start and come online. Many businesses install a UPS thinking it’s a ‘fit-and-forget’ item, only to have them fail when most needed. Others replace them every three years to prevent issues. “The truth is, a well maintained UPS can be expected to give 15 years or more service, but the key is to keep them ‘well maintained’,” Jason said. With Power Protect’s maintenance program, the majority 12

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of equipment is inspected quarterly, with a major shutdown performed once per year. Several components have a limited life of between 4-8 years so their performance is constantly checked and replaced when necessary. “What is the point in having an uninterrupted power supply, if your power gets interrupted due to faulty components.” Another factor to consider is the efficiency of the units. With recent advances in UPS technology, modern units are far more efficient than their equivalents of 10 years ago. A big jump in efficiency can mean a large saving in power bills, which means a new UPS could pay for itself in a relatively short period.

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of ‘power quality and reliability’. “At Power Protect we look at the system as a whole as each component in an emergency power system has an effect on the others and everything has to work together,” Jason said. Jason says the biggest challenge is convincing some customers of the need to conduct proper tests. “Canberra’s power is quite reliable compared to other areas of Australia, which gives people a false sense of security. “Some systems aren’t tested because of fear of failure. But that’s exactly why we test. If systems fail during testing, we can fix the problem before any power outage.” But we are getting a bit ahead of ourselves … how did Jason get to where he is today, owning and running one of Canberra’s most successful power protection businesses, with nine staff, including six service technicians. Jason is a qualified electrician and started his apprenticeship in a coal-fired power station in Queensland. He then went on to work for a city council maintaining traffic lights, sewerage treatment plants, and commercial office buildings. After three years in the trade Jason took on the role of Queensland and Northern

COVER STORY POWER FACTOR CORRECTION (PFC)

Territory Service Manager for an equipment manufacturer, running a team of 14 technicians and 30 subcontractors. Jason faced a tough task managing much older staff who had also applied for his position. “Managing a service business isn’t about being the oldest person there, its about communication, managing expectations, and making sure the business is doing the right things by its customers.” After starting a family, Jason relocated to Canberra and took a field service position with a local branch of a multinational UPS manufacturer. Twelve months later, in 2009, Jason started Power Protect with the goal of providing both excellent technical support and customer service. Power Protect’s first office was just nine square metres at the Canberra Technology Park in the old Watson High School. “As the business grew we moved into a 120m2 office in Fyshwick, and then three years ago we moved into our current site at 43 Whyalla St, Fyshwick, with over 400 m2 – which is bursting at the seams.” In February 2015 Power Protect’s biggest client renewed their maintenance contract, and extended it to cover their generators

Explaining what Power Factor is and how it is corrected isn’t easy, but what is easy is understanding that it saves you money. Once you start spending over about $3,000 per month on electricity, it’s important to have a good power factor because the supply authority will charge you more if your power factor is bad. Having a PFC unit not operating correctly on a large site could cost a business thousands of dollars per month. “We’d find that around half of the PFC units installed aren’t configured correctly. There are systems that have been doing nothing for 10 plus years and no-one had ever noticed until we tested the units,” Jason outlined. According to Jason, while PFC units can bring about substantial savings they are also one of the leading causes of commercial switchboard fires. “Most building owners understand the value of conducting regular thermographic scans, but if the thermographer doesn’t understand how the equipment operates then all you get is a snapshot in time that may not identify a fault.” An annual maintenance program, delivered by Power Protect, tests the functionality and performance of the PFC unit to ensure its operating safely and effectively. “If not set up properly Power Factor Correction may not save the customer money and could reduce returns on their investment. “If you are a building owner or facility manager then we would be interested in speaking with you about testing these PFC units,” Jason offered.

and switchboards. At the same time, Power Protect won another large contract with a federal government agency maintaining its UPS and generators. So what sets Power Protect apart from their competition? “Basically we put our customers first, and we’re thorough. Plus, our warehouse is full of spare parts and loan equipment, enabling us to get clients back up and running as quickly as possible,” Jason outlined, “Our contracted

COVER STORY customers receive 24-hour phone or on-site support, and most have a guaranteed twohour on-site response time, with an average response of 35 minutes.” Power Protect’s pro-active maintenance systems have led to very few breakdowns on equipment under maintenance contract. “In this industry, you can’t wait until something fails and then replace it, a failure exposes the client to substantial risk.” Jason explained that one customer didn’t take their advice to replace recommended components because the ATO depreciation guide said they should last another five years. Three months later the site experienced an embarrassing failure. The safety of Jason’s team is paramount. “The safety and well-being of our technicians is very important to us so we’ve invested heavily in a range of powered trolleys and lifting platforms that allow us to complete installations without the physical stress usually involved in transporting heavy items.” Jason says that the need to offer a reliable service drives a need for appropriate equipment. “We were paying a lot in transport charges to move equipment to and from sites. One night we couldn’t get a hold of a truck when we needed it so decided to take control of transport ourselves,” Jason explained. Jason showed me the Power Protect truck and explained how it had been set up specifically for the work they do. The truck is fitted with a two tonne tailgate and thick steel floor to deal with heavy battery pallets. The exhaust was also modified to make the truck as low as possible to meet dock clearances. “Now we can get equipment where we need to 24/7 without relying on third parties,” Jason said. Amongst the equipment and spare parts in the warehouse Power Protect carry a large stock of batteries. Jason explained that battery faults are the most common issue they see with UPS equipment, and having at least one battery in every size means they can carry out an urgent replacement straight away. “You have to have the right battery in stock. Most companies would need to order them in from Sydney, which usually means having to wait 24 hours. This means increased risk in a business,” Jason stated.

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GENERATORS Diesel generators are key to providing long-term power in the event of a mains outage. Where a UPS system typically supports equipment for minutes, generators are there to support a site for hours or days. But with any asset comes the need for maintenance and generators are no exception. A proper program of maintenance and testing will ensure standby generators are ready to perform when needed. Jason is a strong advocate of what he calls ‘full-functional-testing’ “We’ve come across a lot of sites that will start the generator weekly or monthly, but run the set with no load. It isn’t an effective test, and long term it affects engine performance. “As well as being able to start, we need to test that the transfer switch connects the generator to the building load. Once operational we monitor the generator to see that it can cool itself effectively and supplies

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a stable voltage and frequency to the site.” Jason says that the automatic transfer switch (ATS) can be responsible for as many generator problems as the generator itself, but many customers don’t give the ATS the attention it needs. Power Protect’s generatorservice-plans are customised to each site’s requirements and include maintenance of associated fans, fuel systems, control system, transfer switches and load banks. “With our expertise in transfer switches and thermography, we ensure that your complete system is maintained to minimise the risk of unplanned outages. “If your generator doesn’t start, you’ll want someone there as soon as possible. That’s why its best to engage a local company with several technicians. Sites that contract Power Protect for routine maintenance have access to 24/7 support with a guaranteed 2-hour on-site response time,” Jason explained.

COVER STORY THERMOGRAPHY & SWITCHBOARD MAINTENANCE

What does the future hold for Power Protect? With six service technicians, including a diesel mechanic, Jason is expanding the diesel generator side of his business. “We are looking to add maintenance contracts and customers to our current clients in the following sectors: commercial buildings, government departments, health care facilities, data centres, prisons, emergency services, aged care facilities, hotels, supermarkets, shopping centres and ACT Government,” Jason outlined. Power Protect is based in Canberra but also provides service from Bathurst to Bega and Sydney to Leeton. “I would like to thank my staff and clients for getting Power Protect to where we are today. I can see a period of strong growth over the next five years, as we’re looking to expand into Sydney and Melbourne,” Jason reflected. Jason hopes that local facilities managers, who contract Sydney based companies to do their testing, may switch to a local company that can respond quickly (Power Protect guarantee to respond within two hours) that is available 24 hours a day with the capacity to provide service, and supply spare parts, quickly and efficiently.

Whether it is to meet insurance requirements, or ensuring that poor connections are identified before they result in a fault, facility managers and building owners understand the need for regular thermal camera inspection of electrical switchboards. When compared to the costs of a switchboard fire, thermal imaging is a low cost and effective method of protecting these assets. There is a great deal of science in how to capture and interpret thermal images. Therefore, a working knowledge of the equipment being inspected is very important. Power Protect technicians receive training from the University of Melbourne in thermography and are independently certified by the Australian Institute of Nondestructive Testing. “Our in-depth knowledge of power distribution systems has allowed us to locate faults that others have missed. Our electrical qualifications allow us to repair any faults identified during an inspection,” Jason stated. In addition to thermal imaging, Power Protect can also check the performance of large circuit breakers by using an injection tester. “We check that trip units are functioning to specification, lubricate the moving parts, and inspect the contact faces for wear. “The benefits of having circuit breakers serviced are increased reliability and peace of mind,” Jason explained.

“The cost, embarrassment and lost productivity caused through a power outage due to unreliable equipment – is a risk not worth taking,” Jason concluded.

1300 877 626 service@powerprotect.com.au www.powerprotect.com.au 43 Whyalla St, Fyshwick ACT 2609

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INTRODUCING CANBERRA LEGAL GROUP Photos by Trevor Connell

January 2016 brings an exciting change to Canberra’s legal landscape with the launch of Canberra Legal Group.

anberra Legal Group is a fresh new chapter in a story that began in 1997 with the establishment by John Nicholl of Nicholl & Co, with just one lawyer and two staff. Now one of Canberra’s leading firms, with 14 high-calibre and determined lawyers, Nicholl & Co celebrates its growth and success with a new brand, a new look, and sharp new premises. Canberra Legal Group (CLG) is a full service legal firm, dedicated to achieving the best possible outcome for its clients with impressive and cost-effective results. Remaining paramount as always are the needs of its clients who are central to CLG’s philosophy of Understanding, Empowerment and Results. Heading CLG’s team of experienced and capable practitioners are its Managing Director, John Nicholl, and its Executive Directors, Ian Marjason, Theresa Dowling, and Jon May. 16

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Understanding That is, understanding clients’ needs, expectations, and what is most important to them in the resolution of their matter. Empowerment For CLG, empowerment means using their knowledge and expertise to equip clients with the strength and the right tools to take necessary action. Results CLG’s ultimate goal is to secure great-value results and positive outcomes that allow their clients to achieve their goals.

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John Nicholl has a strong sense of justice and a family background in the law. John’s grandfather and father were lawyers. John’s father was also a magistrate, and co-founded the Bar Association in Canberra. “I switched from accounting to law early in my career because I believed I would enjoy the challenge and could add value to Canberra’s legal landscape,” John explained. John practices mainly in the areas of commercial litigation, medical negligence, family law and estate disputes. “We are building a team of like-minded individuals, with a great culture, but still ensuring there is room to invent your own role and run with opportunities when they arise.” “Our five-year plan was to establish Canberra Legal Group and populate it with high quality practitioners and deliver cost effective results to our clients,” John explained. “It seems we’ve achieved that goal within 6 months.”

“Canberra Legal Group (CLG) is a full service legal ﬁrm, dedicated to achieving the best possible outcome for its clients with impressive and cost-effective results. ” John Nicholl

Together with the CLG team, John, Ian, Theresa and Jon state that their expansion and growth has given them the momentum and energy to drive into 2016. “Canberra Legal Group can tackle almost anything the legal landscape can throw at us,” John stated. Canberra Legal Group invites you to get in touch or check out their new website at www.canberralegalgroup.com.au.

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Ian Marjason and his team of handpicked practitioners are a recent and welcome addition to the CLG team. Ian Marjason has practiced law in the Canberra and Queanbeyan region since 1988 and brings a wealth of expertise to CLG’s dynamic line-up. His diverse practice areas include personal injury and family law. Ian became an accredited specialist in advocacy in 1997. He is also an accredited mediator and registered migration agent. He became a public notary in 1997. Ian also had an extensive career in local government having spent 25 years as a councillor and 7 years as Mayor of both Yarrowlumla and Palerang Shires. He was awarded the Local Government Medal for outstanding service to local government by the Governor of NSW in 2007.

Theresa Dowling commenced her legal career nearly ten years ago with CLG’s predecessor and has been an integral part of the CLG team ever since. Theresa has a dynamic and diverse practice portfolio and her strengths lie in litigation and dispute resolution, and estate planning. As a litigator, Theresa is particularly interested in estate litigation such as testator’s family maintenance or family provision claims, capacity cases, and elder abuse. Theresa’s goal in acting in these matters is timely and cost effective resolution. She applies the same principles to her commercial, building, and other civil disputes and has a strong record in assisting disputing parties to find early resolution by way of mediation or alternative dispute resolution. As an estate planner, Theresa provides, a “cradle-to-grave” all-services legal facility that ensures every contingency is planned for, from a watertight Will and Enduring Power to delivering a seamless and stress-free estate administration.

Jon May began his career at a multinational law firm, representing injured workers in the Australia Capital Territory. Jon has vast experience in all areas of personal injury law including workers compensation, public liability, and medical negligence claims. Jon built his career at this practice on the back of hard work and determination, always with the objective of securing the very best outcome he could for injured workers. Jon later made the decision to shift his focus into other areas of litigation. That decision saw Jon develop a formidable litigation practice, successfully representing clients in legal disputes concerning employment law, building disputes, professional negligence, defamation, personal injury litigation and medical negligence matters. Jon is a people person, and he understands the law can be a maze to his clients. He strives to make sure that his clients not only have the best legal representation, but that they understand the process also.

Contact details: p: 02 6230 1699 f: 02 6230 1899 e: mail@canberralegal.com.au Level 3, 1 Farrell Place, Canberra City ACT 2601

From left: Adam Vilaca, Jon May, Ian Marjason, Theresa Dowling, Kellin Kristofferson, John Nicholl, Perpetua Kish B2B M AGA Z I N E.CO M . AU

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Stress and resilience – change management in organisations By Dr Robert Holmes

he summer silly season in Australia has just passed, with Christmas and the New Year being celebrated under our blazing sun. How do you usually experience this time of the year? Some people find it relaxing and wonderful, whilst others have the most stressful time of their lives. These are very different reactions to the same season. Change, whilst normal,

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brings stress. Think of the way a deciduous forest goes through four seasons, losing leaves in autumn and coming back in the spring stronger than ever. Stress can be positive or negative. It can help us grow or cause us to become fatigued and eventually stop like some of those trees. In much the same way, we have a very natural, in-built ability to find resilience toward stress and to bounce back. So, what is stress exactly? Well, it’s a state of physical, mental and emotional strain resulting from changing, demanding or adverse circumstances. Regardless of whether it is good or bad stress… and no matter what the stimulus or perceived threat is… stress always causes the same cascade of reactions in us. Those reactions affect our ability to respond under threat. The stress response As soon as a threat is perceived, and before you have determined whether action is needed, the cascade is kicked off. Sadly for us humans the first port of call is to downregulate our rational brain. Yes, we become a bit stupid. Concurrently, our emotional brain (the amygdala) is upregulated. Now we’re emotional and stupid. Then our heart starts to race as the nervous system (the sympathetic response of our Autonomic Nervous System) kicks in. Airways open, blood runs back to central organs, anti-inflammatory chemicals are released and our immune response is suppressed (which isn’t great news if this goes on for a while). Red blood cell levels increase (ready for impact injury). Now imagine you’re at work… most of this is hardly called for. Maybe the boss raised her voice, or a car backed; maybe a workmate used a trigger word from our childhood… but it’s not time for blunt trauma right? The next thing that happens is that our memory system

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“Almost nobody pays attention to organisational ecology, but it’s a key element in staff health.” switches from narrative (story) to emotional encoding. We grab fragments, isolated images that will haunt us on the way home, as we can’t stop stewing on the meeting and thinking (long after we need it) of the very thing we should have said. We are more vigilant, more impulsive (might say something we regret later on) and our fear response is dampened (we’re likely to pick a fight). Only now does our “limbic system” chose whether we should freeze, flee or fight. If there was no real threat, then you don’t have to run, hide or hit. You have to calm down. The chemicals take about nine minutes to wind-back and your feelings return to normal. This is, in short, what resilience is: the capacity to undo (or cope with) stress. Not everyone unwinds quickly, and some don’t unwind at all. Stress and resilience researcher Hans Selye observed, “Resilience to the stress response can only last so long before fatigue and then exhaustion sets in.” The US Navy have a traffic light system to identify the different levels of stress. A quick ability to recover would be “code green”. If you go on reacting to the stressor, being worried, irritable or angry then you’d be “code yellow” and told to talk to a friend

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or co-worker. If your threat response is persistent with distress, fatigue and grief then you’re “code orange” and off to see an allied health professional (coach, counsellor, chaplain). If the impact of stress keeps getting worse, then a little better, then worse still (days of cycling), then the Navy send you “code red” to a medical professional. This is a simple and useful way to think about resilience and recovery. What about organisations? What happens to our resilience when a big event happens, like 9-11 that affects us all? Research from Curtain University by Petra Skeffington indicates that 72% of the population will resist and recover (“code yellow” or “code green”), 18% will have various response curves but basically respond and recover in time (“code orange”) and about 10% will be traumatised (“code red”). Of course the event, population, exposure time and many other things change these percentages. However research shows that the vast majority of people are resilient. It’s great to know about the stress response for ourselves, and for a population in crisis, but what happens when we look at stress across a whole organisation and especially if there is no big event? Organisational change, like moving the office across town or across the country, can be very stressful. Little things like parking and crowded canteens can chip away at people. Organisational growth, merged departments, new managers or longer hours all create background stress. Almost nobody pays attention to organisational ecology, but it’s a key element in staff health. Let’s go back to the individual staff member for a minute. Consider that the individual change curve sits over the top of the organisation change. That person gets attracted, gets recruited (and inducted), then retained. They get promoted or overlooked, receives pay rises (or not), goes part time, does overtime, their best friend leaves and eventually so do they. Most People & Culture Departments I have worked with are not thinking in terms of managing the stress response curve of these changes, especially over time. What’s the cost? What’s the risk? Stress in organisations is costing us dearly. Some of it we can measure, some of it we can’t. These include: presenteeism, absenteeism, reduced productivity, breaches of security, reduced quality of outputs, increased psychological injury and insurance or WorkCover claims to name a few. That’s a lot of potential cost for not managing stress. As we become more aware of this

“The way we perceive stress changes our response.” issue, organisations should begin to put risk mitigation strategies in place. These might include: • Awareness campaigns - traffic lights like the Navy do. • Policy and procedure - clarify people’s responsibilities. • HR planning – orientation is a good start, then planning for change. • Mental health and well-being programs. • Relationship health - communications, conflict management etc. • Team building - this is the most important of all. What’s the opportunity? What can we do to make the most of this opportunity? Resilience programs are the flavour of the month right now, and even the military are spending millions on programs like Battle Mind. Firstly, it would be a good idea to define what you mean by resilience. Petra Skeffington’s 2015 literature review found that there was no single, agreed upon definition of resilience yet (I’ve given you two already myself). Secondly, define the outcomes of your resilience program in a measurable and clear way. Although this sounds simple, there will be individuals, companies, HR professionals and psychologists all gunning for different things. Thirdly, because managing stress and building resilience is in its infancy, disregard anyone offering you an off-the-shelf solution! Under the heading of “building awareness” about stress there are two really interesting studies. The first was of a perception experiment done in Florida ten years ago where they ran one group (of several hundred) rollercoaster-fearing people against another similar sized group who loved rollercoasters. They were medically checked before, straight after and three weeks after a day of riding coasters. The ‘haters’ experienced fear and anxiety, increased blood serum levels of cortisol, norepinephrine and adrenaline (all stress-related) and sickness went up 30%. The ‘lovers’ experienced peace and joy, increased blood serum levels of cytokines, interleukins and interferons and

their wellness increased. This is all based on the perception of their task. If you think that’s a bit unbelievable, the University of Wisconsin-Madison surveyed 29,000 people in 1998 about whether they had low, moderate or high levels of stress and whether they perceived stress to be good for them or bad. In 2006, the University researchers looked up the actuarial tables to find out who died. Those who were very stressed and believed stress was bad for them had a 43% increased risk of premature mortality. Those who were very stressed and believed stress was good for them reduced their risk of premature mortality by 4%! The way we perceive stress changes our response. Look for Kelly McGonigal who ran that study, and her new book on the subject. Stress – the emotional, physical and mental strain put on us by change, demand or adversity – is a very natural occurrence. It can be perceived by us as a good thing, or bad. This creates either eustress (beneficial stress) and health or distress and sickness. A person’s capacity to recover from stress and get back to normal is a measure of resilience. It is important for organisations to scope their own ecology, the way they are changing, growing and affecting their employees. The vast majority will be strong and resilient, even in response to catastrophic events, but some will take time to recover and others will fatigue and collapse. Maybe as a first step take the US Navy traffic light system and find your own way to implement it. Robert is a Manager at RSM in their Consulting division, working in the People & Change space. Please feel free to contact Robert on 02 6217 0300 or Robert.holmes@rsm.com.au should you wish to discuss anything raised in this article. rsm.com.au For more information on: Petra Skeffington: go to www.researchgate.net and search for “Evidence based and theory driven resilience,” conference notes 2015. Kelly McGonigal: go to https://www.ted.com/talks/kelly_mcgonigal_ how_to_make_stress_your_friend

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Real estate agents - what is going on? The story of a broken relationship with a bright future, an industry on the brink of technological revolution, the detrimental nature of competition, and change... By Sam Joel

The hitchhiker’s guide to the galaxy

hen we think of real estate agents, we think about some smug overpaid guy in a suit, probably responsible for the horror stories of days gone by when he wasn’t to busy stealing Christmas presents from the local orphanage, or maybe you think of a clean cut model standing at the front door of a shiny new home, big white Colgatesponsored smile stretching from ear to ear, ready & willing to sell you a new life. Either way, it doesn’t actually matter what you think of anymore, unless you are thinking about the future - more specifically the future of property commerce. How will the real estate industry look in 10 years time? In the 1960’s, 70’s, and 80’s Australian manufacturing started to move offshore, a staple food of the Australian economy’s diet for generations, was no longer being sold at the local IGA. Then in 1984, Australia’s finance industry underwent aggressive de-regulation, as newly elected Treasurer & future Prime Minister of Australia Paul Keating issued 40 new foreign exchange licenses and a further 16 new foreign banking licenses. Australian business owners had little choice but to adapt, the Australian economy was born again. Out of the Fordism, into the Fire - Its warm embrace beckoned us closer. But change is winter, and in the words of Jon Snow - “Winter is coming” (RIP). For a lot of us, surviving the winter is not going to be easy. It’s going to push us to an absolute limit, challenging us to re-think the status quo as we step into the unknown, on the outskirts of our comfort zone. It’s quite an exciting feeling though isn’t it, the pursuit of an unknown. I imagine it’s how Captain James Cook felt in the 18th century as he

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sailed his fleet of English colonialists across the ravenous waters of the Pacific Ocean into the presumed safety of Botany Bay, rolling thunder overhead, signaling his imminent arrival to the indigenous population. Now remember friends - Water may be scarce in the barren plains of uncertainty. But never fear! Survival is a natural human instinct. Nature is on our side. I think we are going to get through this – so long as we don’t rely on nature to do everything for us. A cruel & unpredictable mistress, she’ll just as easily hang us out to dry. Yes, if we are to survive the 21st century, it will be as dependent upon our ability to adapt to change - as it will be our ability to see change coming. …But how do we know what to look for, you say? The hitchhiker’s guide to the galaxy: 1. It’s the age of information & technology right now. You’re in it. 2. The Internet of things is here, a product of our collective - intergenerational knowledge and not one to be underestimated, smarter than any one individual living amongst us. 3. Robotics, AI, and Automation are coming soon to an industry near you. Will you be professionally relevant? Or even necessary? In 10 years 1 in 3 Australians may have their jobs replaced by R2D2. Now’s the time to buy shares in seek, or a light saber. 4. Offshore services - same quality, faster turnaround, cheaper prices - the definition of a perfect competitor. So in a free market economy, I have no choice but to bid you farewell and safe travels Australian services (smash sham-pag-nay bottle on hull of ship). 5. Bring a relevant skill, a new resume and a warm Chinese farmed Australian wool

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jumper for when the fire goes out... because baby it’s cold out. 10,000 hours I’ve spent most of life around the real estate industry. My dad is a real estate agent, and my mum is a property manager. Together they own and run their own boutique real estate agency in Canberra, Australia. My dad started working in the real estate industry when I was 14 years old, I’d just started at Telopea Park High School, a few km’s walk from his new offices in Manuka. I remember walking there after school to get money for McDonald’s. I didn’t really care about real estate. I was going to be a sports star so it meant nothing to me at the time. I’m 25 now, so fortunately or unfortunately for me, depending on how you look at it, I spent the next 11 years of my life hearing about the trials and tribulations of the Canberra real estate industry. In that time, I also endured a handful of brief stints working for some of Sydney’s most infamously competitive eastern suburbs real estate agencies. That’s 4015 days for those playing at home. Isn’t there a philosophy of life along the lines of, ‘if you do anything for 10,000 hours you won’t completely suck at it’? I guess we all end up doing unexpected things in life though, don’t we? The unpredictable nature of things is part of the fun. Mr. Morgan In 2015, 600 members of the Australian public were asked to share their opinions on 30 different Australian professions during the annual Roy Morgan Image of Professions survey. Interview candidates were asked; As I say different occupations, could you please say from what you know or have heard which rating best describes how you yourself would rate or score people in various occupations for honesty and ethical standards (Very high, High, Average, Low, Very low) The results were overwhelming, with real estate agents finishing in 28th position out of 30. Now you might get the impression from these results that the Australian public does not believe real estate agents are ethical or trustworthy, but you would be completely… right? (Which is interesting when you consider we willingly place the most valuable financial assets of our lives in the hands of these apparently untrustworthy, morally barren individuals) Is it possible 2015 was just a bad year for real estate agents? Maybe they were having an off game? I decided to

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“...If we are to survive the 21st century, it will be as dependent upon our ability to adapt to change - as it will be our ability to see change coming. “ give my friend Gary Morgan a call (current chairman of Roy Morgan research and son of founder Roy Morgan) to ask him why real estate agents had placed so low this year. Gary informed me that these results are not exactly unfamiliar territory for real estate agents, who, since the surveys inception in 1987 had consistently placed in the bottom 4 places. (I guess the 2015 off game theory’s out). That’s 28 years in a row! That’s the bloody relegation zone! They should have been kicked out of the Australian economy by now surely?! In Gary’s opinion, this year’s results (and apparently the last 27 years results) are the product of a murky operational past that real estate agents are yet to escape from. So it’s kind of like when I was a kid and I used to chase my cat around the house. It’s 2015 now and I don’t chase the cat around the house anymore, but the cat still runs away. Lesson? Cats don’t forget. Apparently, neither does the Australian public when it comes to their relationship with Australian real estate agents. After speaking with Gary Morgan, I decided it was time to dive head first into the Australian real estate industry’s murky past - to see if there was any hope for this broken relationship, or if it was time to call in the lawyers and start splitting up the assets. I can now confidently confirm that there definitely maybe is. Hope.

bodies, the registered training organisations and teachers, the software company owners and developers, the magazine editors and fellow journalists, an Australian university professor, the trainers and coaches, and of course, members of the Australian public who had recently sold, purchased, or leased property. On the day of my first interview, I was excited, nervous, focused, and caffeinated. I was ready. At the time I was quite sure real estate agent were guilty of all crimes ever. ‘Clap ‘em in irons ‘n send ‘em to the brig’ I thought. Unfortunately though (mostly for my ego) it didn’t take long for my findings to render my naïve (borderline ignorant) opinions utterly redundant, and absolutely useless. By interview number 10 I was completely disillusioned, and more than a little bit disorientated. Where was I? How had I got here? How long had I been here? I suddenly found myself burdened with the weight of an unbiased opinion, a position that comes with a great deal more responsibility than I originally started with, or ever really wanted. I had set off with a 100 rounds of ammunition looking for blood, and so far, I hadn’t taken a single shot, returning with only a handful of berries and news of a distant land full of strange animals and land for farming. I had lost my will to fight, or at least, I had redefined my enemy. By interview 25, I was a changed man. I had performed a perfect 180-degree reversal on my original opinion.

Even the judge from Russia had appeared to enjoy it. I’d jumped ship. Prosecution to Defence. Deep inside the abyss, I had found something. It began to emerge - slow, silent and deadly. My eyes strained to see in the darkness, when it hit me, exploding out of the darkness like a layer cake of interconnected problems resembling a bowl of spaghetti thrown against a wall at high velocity. Spaghetti was everywhere. As I wiped the onion and tomato from my eyes, it became painfully obvious what was happening. The Australian public was blaming real estate agents for everything wrong with the real estate industry, including problems outside of their control! Real estate agents were the scapegoat, not the culprit. How could I have been so blind! You can’t exactly blame one individual strand of spaghetti for the whole damn mess now can you?! But who had thrown the plate… (To be continued)

Sam Joel Real estate industry blogger 2point6percent.tumblr.com

The interview I spent the next 12 months (approximately May 1st 2014 through to May 1st 2015) conducting my own informal brand of journalistic investigation into the Australian publics less than ideal relationship with ‘hewho-shall-not-be-named’ (real estate agents). My brand of investigation was established on strong foundations of caffeine, no journalistic experience, and too much spare time. Getting the interviews wasn’t hard, people were more than happy to speak with me. I interviewed everyone from active professional real estate agents, to retired real estate agents of days gone by. Then there were the finance agency owners and brokers, the government agencies &

“Maybe we can try some new ideas this year? anyone?” B2B M AGA Z I N E.CO M . AU

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ADVICE

ACCOUNTING

10 things business owners should focus on for the start of 2016

BOOKKEEPING

2016 – A New Year of Positive Thinking

BUSINESS LAW

Credit risk in focus: the national innovation agenda

by Andrew Sykes, RSM

By Harry Hoang, Tailored Accounts

by Mark Love, Bradley Allen Love Lawyers

BUSINESS SUSTAINABILITY 24

Behavioural change in the workplace

FAMILY LAW

What is spousal maintenance?

By Jenny Dibley, Actsmart business recycling. energy. water

by Chloe Curran, Dobinson Davey Clifford Simpson Lawyers

INTELLECTUAL PROPERTY 26

Unfair contract terms: new rights for Small Business

REAL ESTATE

11 tips for stress free investing

RECRUITMENT

Interview tips for the interviewer: It’s not only the candidate who has to prepare

SPORT

Is LeBron worth $500 million to Nike?

STRATA MANAGEMENT

Seek advice when investing ‘sinking funds’

WEBSITES

How to craft your digital strategy?

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by Shaun Creighton, Arete Group

by Peter Maloney, Maloney's Property

by Jim Roy, Hays Recruitment Experts Worldwide

by Paul Smith, YABBA.guru

by Chris Miller, Vantage Strata

by Sam Gupta, Synapse Worldwide

ACCOUNTING by Andrew Sykes

10 things business owners should focus on for the start of 2016 RSM Australia has identified a number of key areas that SMEs should focus on in 2016: 1. Future trends - new and emerging technology helps smaller businesses streamline processes and transform sales processes from passive to proactive. SME owners who research the solutions available and choose the right one for their business needs will be ahead of the curve. Social and mobile technologies as well as cloud and big data are key areas for investment. Additionally, some technologies that were previously only available to large enterprises are now becoming more cost-effective, making them attractive to SMEs. These include cloudbased applications such as enterprise resource planning (ERP), customer relationship management (CRM), and even business intelligence tools. Such tools can rapidly improve operational decisions, making businesses more successful. 2. Plan - Complete a business plan. RSM Australia’s 2015 thinkBIG survey revealed that 64 per cent of businesses surveyed in 2014 believed their businesses would grow in the next 12 months. The 2015 survey revealed that only 49 per cent of businesses actually achieved revenue growth. The important differentiator between companies that grew and those that didn’t was whether or not they completed a business plan. Of those companies that completed a business plan, 56 per cent achieved growth compared with 36 per cent of those that did not complete a business plan. In an uncertain economic climate, smaller businesses are often the ones to suffer first. Those that have a strong, well-considered business plan in place will find themselves more able to weather the storm. 3. Product and Services - Review and tailor your offering to appeal to changing market demands and needs. What’s working – keep doing that, what’s not working – stop doing that and what new products and services could you offer? 4. Pricing structures - ensure competitiveness and profitability. Put formal procedures in place to monitor and proactively respond to competitor pricing changes. 5. Stock levels - make sure you can satisfy customer demand for profitable product and service lines, and identify slow-moving stock that can be liquidated quickly to generate cash. 6. Sales, marketing and promotion - are you optimised to achieve the best results. Ensure all staff are aware of the targets for each week and be proactive in addressing shortfalls. 7. Staff - review staffing plans and confirm acceptance of the rosters by all staff. For non-retail businesses, annual leave plans need to be balanced and finalised as early as possible to ensure the business continues to operate effectively. 8. Protect yourself - review fraud and theft protection systems and ensure all staff are reminded of their responsibility to be vigilant as customer traffic increases and the pressures of Christmas expectations can motivate increased customer and staff theft. 9. Debtors - actively chase all overdue accounts. 10. Financial products –overdrafts, premium funding, lease facilities and cash flow funding products can all be excellent tools to help match a business’s cash supply with planned outlays.

For further information, please contact Andrew Sykes, Director at RSM, on andrew.sykes@rsm.com.au or 02 6217 0300.

BOOKKEEPING By Harry Hoang

2016 – A New Year of Positive Thinking 2015 is coming to an end, and truth to be told, I couldn’t be more excited about the New Year. In 2015, there were significant improvements in the cloud accounting industry. Xero has doubled its number of customers in Australia, Intuit (famous for its QuickBooks software) Australia moved into a swanky new space in Sydney CBD, and here in Tailored Accounts, we experienced the fastest growth for our cloud accounting products (Xero and Intuit QuickBooks Online) and their add-on services. The future of business is in the cloud. Cloud accounting has proven to be cheaper, simpler, more insightful, and The cloud revolution more productive. The cloud revolution has also changed the roles of bookkeepers and has also changed the accountants—no longer are they merely crunching numbers at work, they are now roles of bookkeepers making important decisions that influence the and accountants—no businesses they are working in. Ever since we adopted cloud accounting longer are they merely softwares in Tailored Accounts, we have been assisting our clients to save millions of dollars crunching numbers at by implementing cloud accounting technology into their financial management systems. work, they are now Ours clients can now focus on running their making important businesses rather than spend time to sort out unnecessary paperwork such as BAS lodgement decisions that influence when due dates approach. Clients who outsource their finance or accounting services the businesses they are to us also have access to a pool of talented working in. accountants in our office. I am proud to say that Tailored Accounts is fast becoming the accounting department of Canberra. I am particularly looking forward to 2016 as I believe it’s time for Tailored Accounts to take off given the strong foundations we have built over the years. From a cash flow perspective, many of our clients are predicting a strong cash position for 2016, and they hope to take their business to the next level. Here at Tailored Accounts, we are extremely proud to be part of our clients’ successful journeys. The cash flow forecasting we have produced is constantly improving and is tailored to fit each of our clients in different industries. If you feel confident about 2016 as we do, contact us to explore ways in which we can support and contribute to your business success. On behalf of my team of dedicated accountants in Tailored Accounts, I wish you all a Merry Christmas and Happy New Year!

Harry Hoang is Tailored Accounts Executive Director M3 Building, Level 1, Suite 127, 24 Lonsdale Street, Braddon ACT 2612 Australia T: 02 6169 5196 | M: 0434 196 607 E: info@tailoredaccounts.com.au | www.tailoredaccounts.com.au

BUSINESS SUSTAINABILITY

BUSINESS LAW by Mark Love

Credit risk in focus: the national innovation agenda The statutory regime that governs the realm of corporate insolvency and personal bankruptcy has long been a point of contention between the business community and regulators, a balancing act that each side felt too often erred in favour of the other. The recently published recommended changes to Insolvency Laws, introduced as part of the Commonwealth’s National Innovation & Science Agenda, foreshadow a ‘cultural shift’ in this regard, but gave scant detail as to what the Government is actually proposing to do.¹ At this stage, all we know is that it wants to strike “a better balance between encouraging entrepreneurship and protecting creditors by: • Reducing the current default bankruptcy period from three years to one year; • Introducing a ‘safe harbour’ for directors from personal liability for insolvent trading if they appoint a restructuring adviser to develop a turnaround plan for the company; • Making ‘ipso facto’ clauses [allowing contract termination for insolvency] unenforceable if a company is undertaking a restructure.” ² A proposal paper will be released in the first half of 2016 with legislation to follow by mid-2017; and so we are, for the present, left to anticipate what will be offered. Whether or not the changes are retrospective, it will be the existing contractual arrangements and structures that you have in place when these laws come into effect which will determine the degree to which you, as a creditor, are affected and to what extent you “lose” as a consequence of any “loosening” of the rules. The core answers to mitigating potential loss when dealing with persons or corporations facing insolvency remain unchanged: 1. Know who you are trading with; 2. Make sure any credit terms are tight, tidy and capable of enforcement; 3. Take security - hold guarantees, charges and make sure those interests are registered; and 4. Keep your debtor balances within a manageable range – overextending credit increases your problem and postpones theirs. The unforeseen losses suffered by traders whose clients fail to pay a debt have a flow on effect and, as the economy tightens, the effect becomes more so. Pre-empting risk is what good “innovators” do, and steps should be taken to protect your valuable cash flow. It is encouraging that the Government might introduce changes that allow corporate restructures before that step into the great unknown of “Administration” or “Liquidation”, but for most of us, we need to remain vigilant in reducing the risk we might otherwise unwittingly assume through our associates’ risk taking behaviours. If you want more information about debtor management, visit our website for our free e-book at www.bradleyallenlove.com.au. 1 http://www.innovation.gov.au/page/agenda (released 8 December 2015). 2 http://www.innovation.gov.au/page/insolvency-laws-reform.

Mark Love, Legal Director, Business Law 9th Floor, Canberra House, 40 Marcus Clarke Street, Canberra ACT 2601 E: mark.love@bradleyallenlove.com.au T: 02 6274 0810 | www.bradleyallenlove.com.au

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By Jenny Dibley

Behavioural change in the workplace Finding it hard to implement environmentally sustainable practices into your workplace? You’re not alone. One of the most challenging barriers to creating a more environmentally sustainable workplace is getting staff to change their behaviour. Changing behaviour requires critical reflection of current behaviours. A quick audit, for example of how staff dispose of waste generated in the office will identify current behaviours. Once identified, encourage staff to analyse their own behaviour, thoughts and feelings about waste disposal and think about other staff behaviours in relation to their own. As a group encourage staff to discuss their behaviours. Understanding the current practices of staff is a good basis to start planning. Research in social psychology shows that behavioural change is most effective when it involves direct contact with people. People are more likely to respond to direct appeals from others than to information-intensive campaigns. (Fostering Sustainable Behaviour, Doug McKenzie –Mohr, New Society Publishers, Canada). Before taking steps to change the behaviour of staff, it is important to conduct an audit of the current waste system to determine the amount of waste going to landfill, number of bins or hoppers and how often they are collected and the costs. This will provide baseline data against which to monitor progress. Try these steps to change the behaviour of your staff: • Select a behaviour to be promoted (e.g. recycling) • Identify barriers associated with the selected behaviour – these may be specific to the individual, such as a lack of knowledge regarding how to carry out an activity, or structures within the workplace that need to be changed in order for the behaviour to become more convenient (e.g. installing bins, establishing waste stations, signage etc.) • Identify benefits associated with the selected behaviour (e.g. reduced costs, minimising environmental impact) • Design a strategy to address these barriers and benefits, (e.g. gain a commitment from an individual to try a new activity or provide incentives to motivate people) • Trial the strategies with a section of your staff • Evaluate and modify strategies if required, and • Implement the strategies more broadly across the workplace. Undertake a second audit of the waste system to determine if disposal costs have declined, recycling increased and less waste is going to landfill. Compare findings with the first audit. Positive improvements indicate that staff have changed their behaviour. Acknowledge and celebrate this achievement. Actsmart provides assistance to ACT businesses to implement environmentally sustainable practices into the workplace. For information on programs and resources available for your business, visit the Actsmart sustainability hub actsmart.act.gov.au, find us on Facebook at Actsmart – Canberra or follow us on Twitter@SustainableCBR.

For more information or to book an Actsmart officer contact Actsmart on Phone: 13 22 81 or Email: actsmart@act.gov.au www.actsmart.act.gov.au Level 2 North, Dame Pattie Menzies House, 16 Challis Street Dickson ACT 2602

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P EA R

FAMILY LAW

TR EE

What is spousal maintenance? In certain circumstances, a person may be liable to provide ongoing financial support to their former spouse or de-facto partner following separation. This is called ‘spousal maintenance’. How is Spousal Maintenance determined? The Court looks at two main factors when determining an application for spousal maintenance, including: 1. Does the Applicant have a need for financial support? In other words, are they unable to adequately meet their own reasonable needs? 2. Does the Respondent have the capacity to pay? In other words, can they afford to provide for the other party having regard to their own Spousal maintenance is not financial commitments? In determining a person’s need for designed to keep a person financial support, the Court will look at a number of factors, including the in the lifestyle they were person’s age, health, earning capacity, whether they have the care of children, accustomed to during the and their financial resources. A person may be unable to support themselves relationship, but rather to cover because they have primary care of a person’s reasonable day to young children, or because they are unable to gain full-time employment day living expenses. for example. Spousal maintenance is not designed to keep a person in the lifestyle they were accustomed to during the relationship, but rather to cover a person’s reasonable day to day living expenses. How long is spousal maintenance payable? Spousal maintenance may be payable for a specified period, so as to allow a person time to complete a course to enable them to re-enter the workforce, or until children reach school age for example. In other circumstances, it may be payable indefinitely, until subsequently varied by a Court Order. Depending on each party’s particular circumstances, spousal maintenance can either be paid in the form of regular payments, such as weekly or monthly, or it can be calculated as a lump sum payment. In other cases, it may be in the form of a transfer of property. In order to obtain spousal maintenance, it must either be by agreement between spouses/de-facto couples, or by a Court Order (which involves making an application to the Court). Is there a time limit for applying? Yes, if you were married it is within 12 months from the date of your divorce becoming final, and if you were in a de-facto relationship it is within 2 years from the date of your separation. If you do not apply within the time limit, you will need to seek leave of the Court to file out of time. If you think you may be entitled to spousal maintenance, or that you may be liable for paying spousal maintenance, you should seek legal advice from a family lawyer as soon as possible. If you would like to make an appointment with a member of our team, please contact us on 6212 7600. Chloe Curran is a Lawyer of the firm 18 Kendall Lane, New Acton Canberra City ACT 2601 T: (02) 6212 7600 E: mail@ddcslawyers.com.au www.ddcslawyers.com.au

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by Chloe Curran att Farrah, Simon Rees and Ant Moore, three mates from the University of Canberra, dream to make the best Marlborough New Zealand wines for the Canberra market has been achieved. With legendary winemaker Ant Moore at the helm, his unconventional winemaking techniques have brought out unique characters of the fruit and terroir, on 100 acres in Marlborough, to make Pear Tree crafted wines.

If you are in a liquor outlet looking for a great Marlborough wine, try a Pear Tree and help support local wine business Rogue Wines.

From the plains of Marlborough to your next special event. Contact: 0403 317 692 matt@roguewines.com.au www.roguewines.com.au

INTELLECTUAL PROPERTY by Shaun Creighton

Unfair contract terms: new rights for Small Business

For further information or if we can assist, visit our website at www.aretegroup.com.au or email Shaun.Creighton@aretegroup.com.au for an obligation free assessment of your legal issues.

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Peter Maloney

11 tips for stress free investing

Small Businesses will soon have the right to request removal of unfair terms within new standard form contracts (from 12 November 2016). This will provide small business with protections afforded to consumers in the Australian Consumer Laws adopted in 2010 (the ACL). New Amendments The new amendments to the ACL provide a clear path to having unfair terms in eligible contracts removed. By piggybacking on the consumer rights, protections against unfair contract terms is will become available for Small Business. Examples of potentially unfair contract terms include: a. one-sided avoidance or limitation of the performance of the contract; or b. permitting termination, variation, renewal or refusal to renew, or otherwise limiting the rights of one party, but not the other. Application of laws The amendments relate to two business related laws, the Australian Securities Investment Commission Act 2001 (ASIC Act) for financial services, and the ACL portions of the Competition and Consumer Act 2010 (the CCA) for the supply of goods and services. Changes to the ASIC Act apply only to standard form contracts for financial products or financial services. Changes to the ACL (within the CCA) apply to standard form contracts for the supply of goods or services. Requests for the removal of unfair terms under the ASIC Act or the ALC may be brought by either a Small Business which is party to the contract, or the relevant regulatory body (ACCC/ASIC). Businesses which include clauses that may be considered ‘unfair’ in their standard form contracts offered to Small Businesses have until 12 November 2016 to amend those clauses for new contracts. The protections do not apply retrospectively, however where a contract is renewed or the potentially unfair term is varied after that laws come into effect, the protections would apply. The protections are aimed to apply where, at the time of entering into the contract, at least one party falls within the definition of a Small Business being where that party employees fewer than 20 persons, and either: a. the upfront price under the contract does not exceed $100,000; or b. the contract has a duration of more than 12 months and the upfront price is under $250,000. How can we help? ARETE Group’s commercial practice has extensive experience in drafting and negotiating goods and services agreements. Our contract drafting and negotiation services allow clients to understand what terms in current or proposed standard form contracts may be deemed an unfair contract term (and to make amendments accordingly). With a view towards the November 2016 compliance date, we recommend relevant standard form contracts be reviewed for compliance as soon as possible. If we can assist in reviewing / drafting your contracts to ensure compliance with the unfair contract term laws, or if we can assist in negotiating contract provisions, call us on 02 6162 1639, visit us at www.aretegroup.com.au , or email our Director, Shaun Creighton, at Shaun.Creighton@aretegroup.com.au

REAL ESTATE

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Looking to invest in Canberra? Like all astute investors you know the next important step is choosing the right agent. Here are my 11 tips for a stress free property investment. 1. Have 2 months mortgage payments in an offset account, just in case there is an unexpected expense; e.g. a tenant is a couple of days late in the rent or if the property becomes vacant. It’s good to have a buffer. 2. Have a professional quantity surveyor do your depreciation schedule to ensure that you are maximising your legitimate tax deductions on your property investment. Make sure it is working for you. 3. Have landlords insurance which covers owner’s contents which are not covered by building insurance, such as carpets and window furnishings. It also covers loss of rent, malicious and accidental damage by tenants, plus public liability. Policies vary but are generally between $300 to $500 a year which is good value and great peace of mind. 4. PI Loans I think interest only loans leave your exposed should the market stagnate or go backwards always look at 25 year principal and interest investment loans. 5. Choose the Right Property Manager Deciding which property manager looks after your property is as important as choosing the right property. Saving a few dollars a week by picking a cheap agent is often a very bad decision. Always ask 3 for proposals and ask for referees. 6. Proactive Maintenance Staying on top of maintenance pays big dividends, it enhances your capital value, the property attracts better quality tenants maximises the rent. 7. Approve Maintenance Straight Away There is nothing to be gained by delaying property maintenance once it’s been identified 8. Don’t Have A Relationship With Your Tenant Stay away from the property and don’t get involved with the tenant. Your property manager is paid to be the shock absorber. Tenants will always try it on if they know the owner. 9. Unless the vacancy rate is less than 2% set your rent at 95% of the market rent, this measure alone reduces vacancy, gives you a wider range of tenants to choose from and they are more inclined to stay. 10. Don’t Rent to Family and Friends Owning an investment property is a business decision. Renting to family and friends often results in heart ache for the property investor. Believe me we know from experience. 11. Buy Another Investment Property Once the equity has built up look at buying your next investment property. For further information regarding residential property management in the ACT contact Peter Maloney on 6232 0100 or petermaloney@maloneys.com.au

Contact Maloney’s on 6232 0100 maloneys@maloneys.com.au www.maloneys.com.au

SE ASON 2016 Chief Conductor and Artistic Director Nicholas Milton celebrating his tenth year with the CSO. The ActewAGL Llewellyn Series exemplifies the breadth of human emotion and experience, while the Saturday Series features diverse programs with popular appeal.

ACTEWAGL LLEWELLYN SERIES

11 & 12 May

6 & 7 April

NIGEL WESTLAKE: Cudmirrah Fanfare SCHUBERT: Symphony No. 7 in B minor—Unfinished BEETHOVEN: Symphony No. 9 in D minor

/01 MOZART Benjamin Northey Conductor Virginia Taylor Flute

MOZART: Symphony No. 31 in D major—Paris JONATHAN DOVE: The Magic Flute Dances—Concerto for Flute and Orchestra NIGEL WESTLAKE: Out of the Blue TCHAIKOVSKY: Suite No. 4 in G major—Mozartiana

/04 TCHAIKOVSKY

Stephen Mould Conductor Soloists from Opera Australia

Nicholas Milton Conductor

17 & 18 August

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Nicholas Milton Conductor Artistic patronage ActewAGL

Indira Koch Violin Wolfgang Emanuel Schmidt Cello WEBER Der Freischütz—Overture BRAHMS Double Concerto for Violin and Cello in A minor DVOŘÁK Symphony No. 7 in D minor

cso.org.au

2 & 3 November

/02 BEETHOVEN

CSO Direct (ticketing) 6262 6772

Artistic patronage ActewAGL

Kristian Chong Piano

NIGEL WESTLAKE Shimmering Blue RACHMANINOV Rhapsody on a Theme of Paganini TCHAIKOVSKY Symphony No. 4 in F minor

SATURDAY SERIES Saturday 20 February

/01 SHELL PROM PICNIC CONCERT

Saturday 2 July

/02 ICON WATER OPERA GALA In collaboration with Opera Australia 7.30pm, Llewellyn Hall, ANU Stanley Dodds Conductor Soloists from Opera Australia Saturday 8 October

/03 CANBERRA WEEKLY MATINEE MAGIC BEATLES IN SYMPHONY Saturday 8 October 2.00pm, Llewellyn Hall, ANU Guy Noble Conductor

With support from the Embassy of the Kingdom of the Netherlands 5.00pm, Grounds of Government House. Gates open at 3.45pm Marc Taddei Conductor Alan Vivian Clarinet

/canberrasymphonyorchestra

@cbr_symphony

SPORT

RECRUITMENT

by Paul Smith

by Jim Roy

Interview tips for the interviewer: It’s not only the candidate who has to prepare It’s the start of a New Year, and the time when employers often think about the skills they need to add to their team for the year ahead. If you are thinking of recruiting, remember it’s just as important for you to brush up on your interview skills as it is for the jobseekers who will apply to your role. After all, good interview technique is not just the candidate’s responsibility. Managers also need to develop their skills in order to conduct an interview fairly, thoroughly, consistently and competently so that they make a sound decision. It’s also worth considering that ineptly handled interviews send a damaging message about what it’s like to work at your organisation, but a competent and objective recruitment process can be so powerful that even unsuccessful candidates recommend the Put your candidate at organisation to others. ease, break down any Here’s our advice on how to upskill your interview technique: barriers and make sure • Make it human: Avoid scripts, which are likely to make for a stilted and unnatural you engage in active interview and don’t allow you to explore listening in order to areas of real interest. A list of guiding questions is important, but it should be used help them put their to steer you through the interview rather than as a cumbersome, form-filling exercise. best foot forward. • Prepare: Think about the competencies most relevant to the role and the questions that will be most valuable to ask so that you can benchmark candidates against one another. • Build rapport: Put your candidate at ease, break down any barriers and make sure you engage in active listening in order to help them put their best foot forward. Ask a few gentle introductory questions to get the candidate warmed up, and give them enough time to answer each one • Look beyond technical skills: Understand your organisation’s unique values, culture and the type of person who will be aligned to them. Devise questions to determine a candidate’s cultural fit. If you get this wrong, your new hire could have a detrimental impact on internal culture and team morale. • Meet legal requirements: Know what you can and can’t ask in an interview. Seek out the advice of a professional if you need to in order to adhere to legal requirements. Do not open yourself up to accusations of discrimination. • Enjoy it: This process gives you an insight into someone else’s world and the opportunity to make a positive difference to their life. This issue is explored further in the latest Hays Journal, available at www.hays-journal.com.

Is LeBron worth $500 million to Nike? In December 2015, star NBA basketball player LeBron James signed a rumoured $500 million lifetime deal with Nike, the world’s largest sneaker seller. Paying half a billion dollars to a person in the home stretch of his career for endorsement of your products seems crazy, right? Well no, actually. While time will tell, it is almost certainly a good deal for Nike. Here is why. 1. Nike, is a big, successful company. Its basic marketing premise is to pay a large group of high performing athletes around the globe to support its brands. Such sportsmen and women include Michael Jordan, Tiger Woods, Rory McIlroy, Roger Federer, Maria Sharapova, Christiano Ronaldo amongst others. It spends $1 in every $10 dollars of revenue marketing itself, or around $3 billion per year. It is a proven successful model. 2. LeBron James is a superstar in one of the most popular sports in the world’s largest economy evidenced by having 48 million followers on Twitter and Facebook. 3. As a teenager coming straight out of high school James signed his first deal with Nike for $90 million over seven years. So Nike has a track record with James and has been able to track awareness, social media gains and other metrics from his original contract. 4. The sales figures for the James’ signature shoes have been estimated by SportScanInfo at $340 million in the recent retail fiscal year. This amount appears to be twice as much as the next highest - the Kevin Durant shoe. 5. James also has his own line of apparel pushing estimated revenue for Nike on James’ other products well over $200 million. 6. James provides a ‘halo effect’ with the Nike brand, helping drive sales of other Nike gear. 7. Nike’s total annual revenue (over $30 billion) has tripled since James signed on in 2003 and the stock price is up more than 1,000%. 8. Nike is the dominant player in basketball shoes with over 90% of the $4 billion market. This dominance has been linked to the Michael Jordan Brand, “Air Jordan” proving sales success can continue long after retirement of the player (Jordan has been retired for 12 years). 9. Nike and James are facing a new challenger in basketball in Under Armour. That rival company has emerged strongly through signing an endorsement with NBA Most Valuable Player Stephen Curry in 2013. Under Armour have also signed sporting celebrities such as Jordan Spieth, Tom Brady and many others using the Nike model to try to beat Nike at its own game. Under Armour has grown strongly since adopting this approach. OK, have you changed your mind about the worth of the $500 million endorsement? Regardless, the Nike/James example clearly shows how valuable sport sponsorship can be. Note: All figures are in United States dollars.

Jim Roy, Regional Director 5th Floor, 54 Marcus Clarke Street, Canberra T 02 6112 7663 | F 02 6257 6377 E canberra@hays.com.au

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For more information, contact Paul Smith, Secretary and Chief Financial Officer of Yabba.Guru on 0401 400 779 or go to www.yabba.guru

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STRATA MANAGEMENT By Chris Miller

Seek advice when investing ‘sinking funds’

For further information, please contact Chris Miller, General Manager M 0400 376 208 F 02 6239 5711 The Griffin, Corner Giles & Jardine Streets, Kingston PO Box 5044, Kingston ACT 2604.

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by Sam Gupta

How to craft your digital strategy?

When it comes to money, I rely heavily on the advice of my accountants and financial advisers, even though I consider myself better than average in my understanding of money, finance and investment. I am, however, smart enough to acknowledge this is a complex environment, and hubris is not my ally when it comes to making sound decisions for my financial future. There is an obvious corollary applicable to Strata Management. Many owners and Executive Committees expect their strata manager should be a jack-of-all-trades. And to be fair, this is generally a reasonable expectation. A strata manager should have a competent grasp of many fields, including accounting and finance. The issue arises when this expectation extends to requesting advice and strategy Better performing on matters that are best left in the hands of experts. This applies across the investment result in better board, however one area in particular that I don’t think gets much attention is returns, which can be offset the way in which Owners Corporations invest their money. against future levies or Legislation was passed a number of simply added to the pool for years ago in the ACT requiring that an Owners Corporation plans for the future future improvements. It is by way of a 10 year ‘sinking fund plan’ and contribute accordingly. When you important to get it right. consider buildings with lifts, external painted facades, mechanical plant and other expensive infrastructure, the funding requirement can be very large. The result can be hundreds of thousands of dollars and, in some cases, millions of dollars of surplus funds sitting in an account waiting to be spent at a future point. Often this money is held in a simple cash management account attracting very low interest. As strata managers, we are often the custodians of these funds. It is not uncommon for an EC to look to us to ensure that their money is working on their behalf, and although the more experienced managers will have some knowledge, they will rarely be the best source of advice when it comes to ensuring that your money is performing. Better performing investments result in better returns, which can be offset against future levies or simply added to the pool for future improvements. It is important to get it right. Whenever I am asked the question ‘what should we do to make the most of our sinking fund?’, my answer is invariably to seek out people who are smarter on the subject than I am. This seems like an obvious solution, however all too often Committees forget that the role of a strata manager is to organise and coordinate rather than to be the oracle of all knowledge on matters that will be faced by them.

WEBSITES

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I hope you had a lovely Christmas and New Year break. New year brings new excitement, new dreams and renewed vision. Digital Strategy can be a primary vehicle to achieve your business vision. Many set goals every year, success however comes to those who act. This article can help you model your digital strategy this year. Step 1: To build a solid strategy, an absolute clarity of goals is essential. The goals need to be SMART i.e. Specific, Measurable, Achievable, Realistic and Time-bound goals. Secondly, you need to allocate resources for your goals. For example; who will be responsible for what, the budget, timeallocations etc. Thirdly, what worked for others may not work for you. Have some past data, old experiences, reference points or benchmarks ready so that you can use them to choose the right strategy for your business. Start by writing down your goals for each area of your business. Step 2: Now, work out the different ways you can use to reach these goals. If increasing sales is one of your goals, you can do it either by increasing new sales or by increasing average order amount (upsell) or by increasing frequency of purchase. If you choose to increase the new sales, you will need more leads. Lead generation can be done via paid search engine advertising or search engine optimisation (SEO) or social media engagement. What is the most efficient channel for you? You don’t have to choose one verses the other. You can use a combination of them to help you achieve your goals on time on budget. Step 3: Start to put together a set of strategies for each goal. For example, a strategy for lead generation will be different to a strategy for customer engagement. Choose the target segment, the relevant platforms (Facebook, Google etc) and the targeting techniques. Tie everything back to your measurable goals. Step 4: Do the analysis based on the past experiences and benchmarks to choose or prioritise your strategies. Sometimes, you may want to put a Plan A & Plan B type scenario. Know the difference between a strategy and a tactic. Tactics are used for short term goals that are generally small and independent. Strategy is a holistic, long-term and sustainable approach. A combination of the two can be used to create your overall digital strategy. Step 5: Make a decision and commit to the chosen strategies for your goals. You don’t have to be right all the time. You can review your plan every quarter to make sure your resources are used efficiently. Define KPI’s (Key Performance Indicators) to track the performance of each strategy. Don’t try to use ‘set and forget’ type strategy. Crafting a digital strategy may sound like a lot of work, but you can keep it simple. Start with one goal and go from there. You will be surprised how easily it unfolds itself once you start working on it. Let me know if I can be of any help. I wish you a very successful and rewarding year ahead.

Sam Gupta is the managing director of Synapse Worldwide. Sam would love to hear your thoughts on this advice column. Tel: 1300 785 230 Email: admin@synapseworldwide.com Web: www.synapseworldwide.com.

2016 VINNIES CEO SlEEpOut REgIStRatIONS NOw OpEN thuRSday 23 JuNE Join over 100 industry and business leaders. REfRESh yOuR pERSpECtIVE IN 2016.

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A S S O C I AT I O N S T O B U S I N E S S

ACT budget needs best bang for buck ROBYN HENDRY

CEO CANBERRA BUSINESS CHAMBER

he ACT has weathered a number of challenging years with a slowing of the global economy combined with a substantial contraction in the employment and spending of the Australian Public Service. A deficit of over $400 million is forecast for the ACT Budget in 2015-16. The strength of the ACT’s business sector has played a key role in protecting the economy during these difficult times. In fact, indicators are increasingly positive for the ACT economy. The October 2015 CommSec State of the States report, found the ACT now has the fastest annual economic growth rate in the nation, up by 4.0 per cent on a year ago. This growth is helping businesses feel positive about the future. The latest Sensis Business Index shows confidence among small and medium businesses (SMEs) in the ACT is currently the highest in the nation. In light of all these factors, Canberra Business Chamber has called on the ACT Government in its 2016-17 Budget submission to continue to take a relatively conservative approach to spending, but focus funding on targeted programs which will support business expansion. The Canberra Business Chamber is recommending a series of measures that require modest, and in many cases nonrecurrent, funding, but which we believe can generate a significant return on investment. Business Trade Liaison Officer As the seat of Australia’s Parliament, Canberra is a natural base for organisations, agencies and individuals who value regular contact with the Federal Government. The ACT is home to nearly 80 embassies and high commissions representing the needs of their own nations and seeking to strengthen ties with Australia. These embassies present a relatively untapped potential to engage with current 32

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“Business Chamber has called on the ACT Government in its 2016-17 Budget submission to continue to take a relatively conservative approach to spending, but focus funding on targeted programs which will support business expansion.” and prospective export markets on behalf of ACT businesses. Canberra Business Chamber is proposing the 2016-17 ACT Budget provide funding for employment of a Business Trade Liaison Officer. The Business Trade Liaison Officer would strategically work with embassy staff responsible for trade to understand these markets in order to gather and share intelligence with ACT business. This resource will take the ACT engagement with embassies and high commissions from a transactional approach to a more systemic approach, which will have positive benefits for all ACT businesses – current and future – who are exporting expertise and products to international markets. Internship coordinator One of the ACT strongest sectors is its education industry. Our world-class tertiary and technical education providers not only attract students from interstate and overseas, but help prepare our future workforce. Canberra Business Chamber believes it is essential to integrate ACT employers, both private and public, into the growth strategy of our education and training industry. It is recommending a dedicated resource be funded to develop and maintain a comprehensive relationship between the labour market and education and training institutions. The Internship Coordinator will help ensure education and training and work experience support the future needs of the ACT labour market and students. By identifying and matching education and training opportunities with work placements and internships, this initiative will help students get work ready, provide employers with experienced staff and reduce the risk of future skills shortages.

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It will be the role of the Internship Coordinator to motivate and support employers to provide workplace experience to ensure there are enough placements to support growing student numbers. Increasing the number of students who undertake internships and work placements in the ACT and ensuring this is a mutually enjoyable and beneficial experience is also expected to increase the number of people who stay and work in the region after they graduate. To see the full Canberra Business Chamber 2016-17 ACT Budget Submission, visit www.canberrabusiness.com.

Back to Business with Ian Harper, Partner Deloitte Access Economics and author of ‘Building the Lucky Country’ Thursday 11 February 2016 Hyatt Hotel, Canberra 4.00pm – 5.00p followed by cocktails in the courtyard Details www.canberrabusiness.com Contact the Canberra Business Chamber Team: Phone: 02 6247 4199 Email: info@canberrabusiness.com Web: www.canberrabusiness.com

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CHIEF MINISTER’S MESSAGE

ANDREW BARR

CHIEF MINISTER TREASURER MINISTER FOR URBAN RENEWAL MINISTER FOR TOURISM AND EVENTS

Photo: Tim Benson

Innovation statement to benefit CBR

he Federal Government’s innovation agenda announced by the Prime Minister and Minister Pyne is a significant policy shift that will certainly have some benefits for Canberra. At the very least, the agenda rights many of the wrongs inflicted by the Abbott-led government that put thousands of Canberra jobs at risk over the last few years. Canberra is fast becoming the knowledge capital of Australia. We have a vibrant tertiary education sector, with one in every nine Canberrans either working or studying in one of the many institutions based in the ACT. Every year, thousands of the brightest minds from Australia and around the world come to our city - officially one of the world’s top 20 student cities - to learn from the very best lecturers and researchers that work in Canberra. We foster a culture of collaboration and innovation that continues to harness emerging talent and new start ups. In the ACT, we have recognised that innovation is critical to economic growth and development. That is why accelerating innovation has been at the heart of our business development strategies for several years now. Canberra has an active and successful entrepreneurial community which is going from strength to strength. Only months ago the Office of the Chief Economist of Australia reported that “on a population adjusted basis the ACT is the highest performing of all Australia’s States and Territories on both innovation and entrepreneurship”. We are ideally placed to reap the benefits of the initiatives in the Innovation Statement. We have already established the 34

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CBR Innovation Network (CBRIN) and the programs announced in the statement will give us an opportunity to grow the network. The high performing Griffin Accelerator Program and the newly establish Kiln Incubator – both run out of CBRIN - will be able to directly benefit for funding streams to support advisors and mentors. We have a community of private sector investors in start ups who will now be encouraged to do more with their capital in the ACT and also attract new investors. Canberra is home to big government data, so the reforms around procurement and data access have the potential for major impact in our government-to-business economy. We are also pleased to see the additional funding provided to CSIRO and the way that it will be applied, in particular the investment fund. The CSIRO is a major employer in the ACT, and this decision provides some certainty to many Canberra families who were worried about job losses at the organisation following cuts from Liberals’ 2013-14 Budget. There is now $1.5 billion for the National Collaborative Research and Infrastructure Scheme (NCRIS) and that is particularly important for Canberra’s science research community. The establishment of a Cyber Security Industry Growth Centre is great news and that will greatly add to the work my Government is doing to establish a pathway for the development of this important sector in Canberra. The ACT Government recently announced the outcomes of the first round of funding under the CBR Innovation Development Fund – a $1m fund supported numerous projects increasing collaboration and innovation in the

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Canberra is fast becoming the knowledge capital of Australia. We have a vibrant tertiary education sector, with one in every nine Canberrans either working or studying in one of the many institutions based in the ACT. Territory. Both the ANU and the University of Canberra were successful in gaining funding for projects run at the Universities, and I was glad to see other local companies gain support through the program. While the federal government’s plan for innovation is a step in the right direction, there is certainly more work to do in this area. This announcement fails to make up for the $3 billion cut from innovation, science and research initiatives since the 2013 election. I also hear from many Canberra residents who are frustrated by the ‘digital divide’ that is developing in our suburbs with the delayed rollout of high speed broadband. Nonetheless our city has a head start when it comes to taking advantage of the Commonwealth’s plans.

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B2B @ SMILES ORTHODONTISTS CHRISTMAS PARTY 2015 ROYAL CANBERRA GOLF CLUB

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