Business Times July 2013 by Keith Platt

business NETWORKING: Frankston | Mornington Peninsula | Dandenong

July 2013 | $4.95 (GST inc.)

THE HEAVY liFTER

CRAIG MEMBREY GOES BEYOND TO SHIFT A LOAD

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ISSUE 36 / JULY 2013

FRANKSTON / MORNINGTON PENINSULA / DANDENONG

TONY MURRELL KEITH PLATT MARG HARRISON DAVID HILET MELANIE LARKE SIMON BROWN Design MARLON PLATT

Publisher / Director Editorial Director Sales Director Managing Director Material production / Prepress

Inside The pros: Tax time look-out for professional services

Departments 18

Appointments: Who’s new where you do business?

News Busy Bites Networking snaps Business Directory

Columns

Email: General: inquiries@businesstimes.net.au Editorial: news@businesstimes.net.au Advertising: sales@businesstimes.net.au Artwork: production@businesstimes.net.au Internet: www.businesstimes.net.au

Networking: Ivan Misner Health: Mike Ellis Markets: Richard Campbell Managing: Hamish Petrie

BusinessTimes is published 11 times a year by BusinessTimes Pty Ltd and printed by Galaxy Print & Design, 76 Reid Parade, Hastings, Victoria 3915. Postal: PO Box 428, Hastings, Victoria 3915 Tel. 03 5979 3927 Fax. 03 5979 7944

Are you in BusinessTimes? For advertising, contact Marg Harrison on 0414 773 153 or marg@businesstimes.net.au Make sure every business knows your business. July 2013

BuSINESS

COMMUNITIES LOSE VOICE AS NEWSPAPERS CLOSE WHILE OTHERS REDUCE CIRCULATION

KING: Frankston

on Peninsula | Morningt

NETWOR

THE Y HEAV liFTER Ey GOES A lOAD cRAIG MEMBR TO SHIfT BEyOND

ER AS NEW ORD FOLD PAPERS SPAWNS PORT TOWN ERS TWO PuBlISH

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cOvER TExT fOR HERE lINE THREE

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COVER: Craig Membrey is passionate about his trucks, his cranes and anything to do with heavy lifting. He has dealt with a personal load by throwing his weight behind beyondblue, the national depression initiative: P12

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DISCLAIMER: Information in BusinessTimes contains general advice only. No article or column has been prepared taking into account any individual reader’s financial situation, investment objectives or particular needs. Readers should personally consult professionals for advice on any matter, including investment, health and the law. While all care is taken, BusinessTimes accepts no responsibility for errors or omissions in the published material. Views expressed are not necessarily those of BusinessTimes Pty Ltd. All content is copyright.

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Caroline Buffinton is the director of design company Aurora Creative (branding, graphic design, print, signage and websites). She says past experience in automotive design provided “tremendous insight” into visual branding. “We will work with companies  of all sizes a business and its people need For all legal services In 10 years I will be ...  planning out their brand spending more time travelling.    and marketing Est. 1954 strategies, Our business planning entails to ensure  that we create ...  setting key objectives and the right design solution goals. Always looking for new forwww.whitecleland.com.au our client.” branding mediums to give our clients the edge.    I dreamed of being ...  Tip for success ...  Surround an Level archaeologist. 3, 454 Nepean Hwy Frankston 9783 2323 yourself with positive people.    My first paid job was ...

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To Ignore campaign “centred on the real . corporate people of business” is supported bycounsel more services than 21,000 small businesses. . business debt recovery In the lead up to the 14 September election VECCI is urging small business . defence & governmen owners and employers to add their own contracting business stories on the campaign’s website toobigtoignore.org.au, and through . employment law Facebook and Twitter. “There are more than two million property law . commercial small businesses in Australia employing seven million Australians, or around 60. franchising per cent of the Australian workforce,” CEO Mark Stone said.“This campaign& bankruptcy . insolvency provides a channel for the collective voice of Australia’s small business entrepreneurs . intellectual property licensin and staff to be heard and respected, & technology transfers and for their needs to be acknowledged and made a priority of the next. federal commercial leasing government. . local government “Small business is mobilising and getting involved in this campaign, telling . offsets their stories and outlining what they& industry plans need.” . probate & administration o deceased estates 2275

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BusinessTimes Frankston / Mornington Peninsula / Dandenong | July 2013

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NEWSMAKERS

Paper cuts make news in south-east munity News (FCN) in June 2006, led to staff cuts and its office being moved from Hastings to Mornington. Fairfax next stopped using the familiar Independent mastheads, deciding instead on revamping the design of its more than 30 community newspapers across Melbourne and publishing them all under the Weekly brand. Continuing losses by mastheads in the south-east led to a sharp decline in revenue that was unable to be fixed by the “reverse” takeover in July 2012 when FCN virtually handed its publications and $35 million to Metro Media Publishing (MMP). MMP’s inner suburban real estatebased publications had caused the biggest losses to the Fairfax papers. The fundamental changes wrought by FCN and its partnership with MMP could not reverse the downward spiral 15 of advertising revenues.

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Starting with the Hastings Independent in 1984, the Independent News Group over 25 years grew to publish weekly community newspapers under five different mastheads in an area stretching from Portsea in the south to Mordialloc in the north and Cranbourne in the east. The quarterly Holiday Magazine catered for the tourism industry in Frankston and on the Mornington Peninsula. Seven years ago Cameron McCullough, then running the Hastings newsagency, photocopied a small Hastings News newsletter. That first edition has become the leading masthead of five newspapers published by the Mornington Peninsula News Group (MPNG). McCullough made a low-key approach to a market dominated by the Independent and the Leader group, owned by Rupert Murdoch’s News Ltd. The Independent’s sale to Fairfax Com-

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By Keith Platt Hastings is seen as a bit of a backwater. Nestled deep within Western Port it is flat, has no sandy beaches and was once designated a centre for heavy industry. Shops lie vacant and unemployment is high. Trumpeted by successive state governments as a deep-water port, Hastings is lucky to see 40 ships a year berth at the docks alongside the Esso and BlueScope plants. Although the present government is spending $110 million on studies of the bay and its development as a major container port, it is unlikely to be on stream for decades.BlueScope has been shedding jobs, leaving Mornington Peninsula Shire as the peninsula’s largest single employer. However disadvantaged it may seem, Hastings has for decades been punching above its weight when it comes to newspaper publishing.

July 2013 | Frankston / Mornington Peninsula / Dandenong BusinessTimes | 5

BUSY BITES

No to more hotel patrons Frankston City Council has unanimously rejected a permit application by The Sands Hotel, Carrum Downs, to increase the maximum number of patrons allowed in the premises at any one time from 590 to 800. Council cited inadequate parking and unreasonable impact of traffic on nearby streets as reasons for its refusal. The increased patronage would cause overspill car parking in residential streets around the hotel, according to councillors. The refusal motion was put by Cr Colin Hamilton and seconded by Cr James Dooley.

Bully (not) for you

Most people know that “renovator’s delight” is real estate code for a house ready for the wrecker’s ball. So too with “in need of modernisation” or “character”. Real estate agent speak, much like what has happened to language in general in the wake of the Twitter and texting, constantly evolves. It can’t be easy writing real estate copy or talking up a property to a dozen or so (mostly) tyre-kickers that wander into an “open” house. Notably, Rosebud on the Mornington Peninsula has this year developed a “Paris end”. Properties do a lot of “boasting”: large frontages, views (sea, waterfront, rural and the less specific, scenic). Power lines can be airbrushed out of photos so as not to ruin the sunset. But now “Australia’s largest real estate network” Ray White as advertising its readiness to “dump ‘flowery’ real estate marketing”. The company’s chief of marketing Karen Hall says research shows Australians are “weary of vague, flowery statements”, instead referring “examples of tangible, distinct value”. The direction change comes after an analysis of real estate speak by London’s Daily Telegraph: “Excellent transport links” translates to being

A ‘renovator’s delight’.

close to a motorway and or busy railway line (ditto “conveniently located”). “An ideal purchase as your first three-bedroom home” relates to there being a minuscule third bedroom (“easy to maintain” also means small). “A cosy property in a rural location” is a small house at least 20 minutes’ drive from the nearest shop. “Reduced” means desperate. “Low maintenance rear garden” means it’s covered by concrete. “New price!” – the property was massively overpriced in the first place.

AUSSIES WILL GO FOR QUALITY: SURVEY A survey of more than 1800 Australians shows they prefer superior products or services to cheap prices and promotions. Fiona Adler, founder of business review website WOMO.com.au says small to medium businesses should be “focusing efforts to engage a steady customer base”. Survey participants were asked to prioritise factors that would make them use a business again within three key service categories: personal care (such as hairdressers, beauticians and massage therapists),

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The Group Training Association of Victoria and the Bully Free Australia Foundation are out to protect apprentices and trainees from workplace bullies. Bully Free Australia Foundation believes up to 10 per cent of employees are “impacted” by bullying. The anti-bullying partnership includes training 200 field officers to mentor 8500 apprentices and trainees across the state to “avoid, or at least to cope with, conflict in the workplace”. The Group Training Association of Victoria represents group training organisations that employ over 8500 apprentices and trainees across all industry sectors each year in Victoria.

LANGUAGE EVOLVES AROUND PROPERTY

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food service (cafes, bars and restaurants), and tradespeople. Ms Adler said businesses should avoid wasting resources by listening to their customers more closely. “People now seek a high-quality product or service first, and consider cost a lesser priority. This means businesses should be investing in staff training and using premium materials rather than cheap gimmicks and promotions. “Consumers are also more vocal now than ever before, by telling businesses how they feel online.”

commsec economist predicts stability Commsec chief economist Craig James expects Australia’s economy to be stable over the next year with around three per cent growth. James addressed Monash Business Breakfast on Thursday, 6 June, at Peninsula Golf Club, discussing inflation, employment, home prices, the Aussie dollar and the sharemaket. James predicts that Inflation will be within the band of two to three per cent with unemployment still low at 5 to 5.75 per cent Home prices: growth between 2 to 4 per cent Interest rates: range 2.5 to 3 per cent Aussie Dollar: range US92-104c; US95c in September James said he expects the ASX 200 to be around 5400 points by December. Other points he made about the sharemarket: • Volatility receding • Less bad news • Record US markets • Still producing profits • Returns matter • Cash to equities

Commsec chief economist Graig James.

PRESSURE MOUNTS FOR RECYCLED WATER SALES While the peninsula will not be able to provide enough buyers to appreciably lessen the flow at the Gunnamatta outfall, investment by the state could build infrastructure to take to treated water to “Gippsland, Werribee, the Yarra River or wherever.” Smith blames a lack of vision by marketer South East Water for the amount of Class A water going to waste in the ocean. He says the fresh water is a creating an environmental problem on the doorstep of the Mornington Peninsula National Park, which runs from Finders to Portsea.  “The bull kelp forests continue to be decimated, resident fish probably have two heads and three eyes, and the small shellfish and micro-organisms will continue to mutate and die,” Smith says.

There is five months to go before analog TV signals are switched off in Melbourne. Ten regions across the country have made the switch already, with five regions to go over the next six months, including Melbourne on 10 December. When completed, the switchover means more than 8.7 million households will be watching digital-only free-to-air TV. The federal government estimates 95 per cent of Melbourne viewers have already made the switch and has issued a warning that neither the Household Assistance Scheme or Satellite Subsidy Scheme are being touted by door-to-door salespeople. To find out about the switchover visit www.digitalready.gov. au or call 1800 20 10 13.

Parking blueprint A plan to address the lack of parking in central Frankston will be prepared for councillors’ consideration by May next year. In the meantime plans containing required works and detailed costings and then a draft parking precinct plan are expected in August and February.

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The state government may soon be under pressure to improve infrastructure to increase sales of recycled water from the South Eastern Treatment plant at Bangholme. Clean Ocean Foundation, which led the charge against Melbourne Water discharging partially treated sewerage into the sea near Gunnamatta, has now turned its sights on finding uses for the Class A water now available. The treatment plant started pumping the Class A water into the sea on Christmas Day, 2012, Clean Ocean’s former president Peter Smith says the change was done without fanfare because Melbourne Water was forced to make expensive upgrades. He estimates the water being pumped out, if sold, could raise $247 million a year.

Essential’ break

July 2013 | Frankston / Mornington Peninsula / Dandenong | BusinessTimes | 7

NETWORKING

1. At the BNI Mornington members’ breakfast meeting on Wednesday 29 May are Clare Burns, of Step Up Coaching, Paul Campbell, Connect Building group, and Lisa Bedin, Peninsula Curtains. 2. Wednesday 6 June was the Monash business breakfast at Peninsula Country Club, attended by Graham Lindsay, Lindsay and Associates, Cassandra Brumley, Promotional Product Advertising, and guest speaker Craig James, chief economist Commonwealth Securities. 3. Extreme Networks held an evening for business associates at Port Phillip Estate on Tuesday 28 May. Among those at the night are Nicole Parsons, Nic 4 BAS, Ron Harrison, BusinessTimes, and Carrie Senecko, The Hastings Club. 4. Also at Port Phillip are Action Coach’s Annette and David Guest. 5. Extreme Network’s engineer Simon McMannis and wife, Jo. 6. At a lunch to launch the Frankston Food & Wine Society on Wednesday 29 May at Frankston Park by the bay are Joe Russo, Core Fitness, Narelle Clark, and Bryan Mace, Frankston Football Club. 7. Stewart Webster, Verna and John Grange, Kingston Grange and Bamboo Fibre. 8. Also at the wine and food launch are Arthur and mary Parsons, Visitor Publications.

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9. Enjoying the company at the Frankston Wine & Food Society launch on Wednesday 29 May are, from left, Yasu Oyama, Oyama24 restaurant, Mt Eliza, Nicholas Parkinson-Bates, Flinders Hotel, and Peter “Mungo” Jupp, Ancient Destructions. 10. Former Frankston mayor Christine Richards, right, and Alan Wickes, Thinking People, at the wine and food launch. 11. Organisers of the wine and food launch, from left, Rob Thurley, Kevin Johnson and Max Butler. 12. Sundowners Free Networking kicked off on 20 June at Rosebud. Pictured from left are Jacqui Porter, NAB Rosebud manager, Carolyn Mibus, Peninsula Pet Clips, and Elaine Dalziel, of the Tasting Station, Rye. The Tasting Station will host the next evening. Contact Mary Bruce 5986 6787 or Marg Harrison 0414 773 153 or email marybruce@marybruce.com.au 13. Beau and Jessie Rixon at the 15th anniversary celebration of bradyart, a week-long exhibition at Cube 37, Frankston 14. Transfer Pricing Solutions hosted a seminar at Ramada Encore, Dandenong, on 25 June. Transfer Pricing’s director Shannon Smit is pictured with guest speakers Grant Guenther, of M + K Lawyers (left) and Michael Jenkins, Australian Taxation Office’s assistant commissioner for Large and International Business. 15. Quest Frankston on the Bay opened with a cocktail party for business people and tourism operators on Thursday 13 June. Quest staff pictured inside the revamped Peninsula Centre – now Peninsula on the Bay – are, from left, Stafford Dawson, Leanne Outtrim, Prabath Kottegoda, Kate Battle, Chris Bowman and Helen Cook.

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NETWORKING

How behavioural styles affect business In part one of this two-part series (March 2013), I introduced the concept that your behavioral style can directly affect your business. Now, I am going into the four main “styles” so that you can begin to identify which one (or ones; they are fluid) you might be. First, a bit of history… In 1928, psychologist William Moulton Marston wrote about a modern take on behavior profiles. These profiles have undergone many transformations since then, with the most important changes being the tools used to measure people according to Marston’s original model. In Emotions of Normal People Marston exhibited his keen interest in the ways a person’s emotions can affect or be visible in physical symptoms or expressions. He categorised emotional expression into the following types: Dominance (D), Inducement (I), Submission (S) and Compliance (C) After realising how powerful the concept of behavioral styles is to referral marketing, I worked with some business partners to identify and categorise four major behavioral styles that would relate to the DiSC. There are certainly many different ways to “title” these four major styles. A colleague, Dawn Lyons, spearheaded this effort to create titles that would speak to our target audience and have credibility in the business world. In crafting the four different behavioral styles, we strived to: • Inspire positivity • Ensure clarity between the four styles • Make the styles instantly understandable to anyone; and • Create a picture of the person described. • Have the titles be congruent with people’s actions while networking After selecting the titles, our next step was to get validation from an expert. We approached Tony Alessandra, a best-selling author, entrepreneur and motivational speaker in the fields of sales and marketing, who is an expert at developing assessment tools. As soon as we shared the titles we’d been working on with him he said: “They’re perfect! Clear, focused, completely on-track with what you do and simple.” Here are the four main behavioral styles, complete with a short definition and description, and followed by Alessandra’s assessment.

Dr lvan Misner*

Networking specialist

Go-Getter: A hustling, enterprising type of person. The Go-Getter would be the equivalent of the D in DiSC. Go-Getters tend to be very resultsoriented, driven, fast-paced and impatient. They have a “get it done now” attitude. They attend networking events to gain new business and look to meet the most successful people at the event. Alessandra says: Go-Getters believe in expedience and are not afraid to bend the rules. They figure it is easier to beg forgiveness than to ask permission. They are so focused that they can appear aloof. They are so driven that they forget to take the time to smell the roses.” Promoter: An active supporter, someone who urges the adoption of, or attempts to sell or popularise someone or something. The Promoter would be the equivalent of the ‘i’ in DiSC language. Promoters tend to be very positive, friendly and ‘happy go lucky’ type of people. They love to be on the go and are okay with having lots of irons in the fire. They avoid confrontations and seek fun in everything they do. They attend networking events to hang out, meet new people, talk to their friends and make sure they are ‘seen’ at the event. Alessandra says: “[Promoters] would rather ‘schmooze’ with clients over lunch than work on a proposal in the office. They are idea-people and dreamers who excel at getting others excited about their vision. They are risk-takers who are not inclined to do their homework or check out information and base many of their decisions on intuition.” Nurturer: Someone who gives tender care and protection to a person or thing, especially to help it grow or develop. The Nurturer would be the equivalent to the ‘S’ in DiSC language. Nurturers tend to be very patient, kind, caring and helpful people. They are great listeners and tend to enjoy things at a slower pace than the Go-Getters and Promoters. They do not liked to be pushed or rushed into things and appreciate

10 | BusinessTimes Frankston / Mornington Peninsula / Dandenong | July 2013

quality time with people. They attend networking functions to connect with people they already know, meet a few down to earth people and focus on deepening their relationships. Alessandra says, “[Nurturers’] relaxed dispositions make them approachable and warm. They develop strong networks of people who are willing to be mutually supportive and reliable. They are excellent team players. But they are risk-averse and may tolerate an unpleasant environment rather than risk a change.” Examiner: A person who inspects or analyses a person, place or thing in detail, while testing their knowledge or skill by asking questions. The Examiner would be the equivalent of the ‘C’ in the DiSC language. Examiners tend to be very thorough, efficient, task-driven people. They seek information and knowledge and love to check things off their ‘to do’ list. Because Examiners need a lot of information, they tend to make decisions more slowly than the Go-Getters and Promoters. They have a propensity towards perfectionism. Examiners tend to be very good conversationalists as they know a lot about a lot of topics. They attend networking functions only to market their business and, once they achieve their goal for the evening, they usually leave the event as quickly as possible. Alessandra says: “[Examiners] are always in control of their emotions (note the poker-faces of many Jeopardy! contestants) and may become uncomfortable around people who are less self-contained; that is, emotional and bubbly like Promoters. They tend to see the serious, complex side of situations. Their intelligence and natural wit, however, gives them unique, quick and off-the-wall senses of humour.” Once you start to understand these four different behavioral styles, it can actually become easy it can be to identify someone, adapt to their style, help them feel comfortable – and make them feel good at the same time. Dr Ivan Misner is a New York Times bestselling author. He is the founder and chairman of Business Networking International (BNI), the world’s largest business networking organisation. Dr Misner is also senior partner for the Referral Institute, an international referral training company.

Many Australian businesses face PC upgrade in the next 12 months Many Australian Businesses flocked to take advantage of the government’s accelerated depreciation for IT assets to upgrade PCs and laptops ahead of Microsoft’s ending of support for Windows XP on April 8, 2014. However, as many as 30 per cent of PCs in Small Businesses today will need to be replaced before the April deadline. A recent survey of more than 1000 computers by Extreme Networks found the 30 per cent of PCs are running Windows XP, three per cent are running Windows Vista, another three per cent have upgraded to Windows 8. The remaining 64 per cent are running Windows 7. The deadline will mean that Microsoft will no longer release patches for Windows XP, meaning that the Operating System will become increasingly vulnerable to online attacks and cyber threats. Many business have delayed the upgrade to Windows 8, partially because of bad press that Microsoft’s new Operating System has received. And there is often an initial perception that it is harder to use. However, once most users get used to the new interface and work out a couple of quick short cuts, the improvements of Windows 8 over Windows 7 and its earlier release become apparent. Boot up is faster, finding application and documents is a lot faster, integration with the cloud is a lot better and general productivity is better. Many businesses are taking the refresh requirement as an opportunity to experiment with newer technology, such as tablets for mobile workforces and Sold State Drives. The SSD equipped laptops and desktops offer extremely fast performance and almost instant on, with resume times of less than 2 seconds. Leasing costs for new PCs can be as low as $40 a month. This cost can be decreased by the sometimes significant power savings of the new breed of Intel low power consumption CPUs, which often lead to significant monthly cost savings. The survey also showed that many businesses have lagged behind with the upgrade of Server Operating Systems. Disturbingly, 1.5 per cent of all servers in the survey where

still running Server 2000, an Operating System more than 13 years old and notoriously difficult to secure. Another 20.8 per cent where either running Server 2003, SBS 2003 or Server 2003 R2. Server 2003 R2 was released on December 6, 2005, making it a quite dated Operating System to be used. Servers running outdated Operating Systems generally suffered from two main issues. The software is old and harder to maintain with more virus and malware infections and less tools available for proactive management meaning that support costs are generally higher and the hardware is usually out of warranty, meaning that if there is a hardware issue the time to find a replacement part may be more than one week. If you would like a quote on a low monthly leasing agreement to upgrade your Windows XP machines or Servers, or would like to find out how much your PCs are costing to run each month, please call Extreme Networks on 9785 7162.

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feature: HEAVY LIFTER

e h Carrying t weight I f you want to shift something that’s awkward and heavy, Craig Membrey is your man. The bigger the better. If it’s unusual ands needs a lot of care and cosideration, even better. Membrey is a man of heavy haulage. He controls trucks and cranes that can be brought in to tackle just about any heavy lifting challenge. Trains and carriages come off the rails, call Craig. You have a Spitfire that can’t fly but needs to go from one place to another, Membrey will get it there. So, too, with animals: giraffes are a speciality. Membrey presents as a knock about sort of bloke who’s ready to tackle anything in his sphere of operation. He sits in his Dandenong office, a fluoro top, tough work pants and shoes. The desk is dominated by large monitors for cameras constantly scanning inside outside Membrey’s Transport & Crane Hire. The office is equipped with a fridge modelled on a Golden Fleece petrol bowser and head high glass cabinet filled with miniature model trucks (Kenworths) and cranes (Hebherrs). There are also a lot of framed family photos. Talking with Membrey soon uncovers the fact that while his business life revolves around carrying weights for others, there is also a heavy personal load that is never far from his mind. He carries the weight of losing a 17-year-son to suicide. The loss of Rowan in March, 2011, was a life-changing event for Membrey. Now added to his role as managing director of Membrey’s Transport is the title of beyondblue ambassador. His position with beyondblue sees him interacting and speaking about the effects of depression with people well

12 | BusinessTimes Frankston / Mornington Peninsula / Dandenong | July 2013

Craig Membrey is accustomed to carrying and lifting heavy weights for others. Since the suicide of his son, Rowan, he has embarked on a mission warning about the dangers of depression, teaming up with the head of beyondblue Jeff Kennett, right, and trucking magnate Lindsay Fox, above. Membrey’s father Jack started the trucking business in 1962, with Craig coming into the fold in 1989 after “half a dozen or so failed attempts” for father and son to work together. outside the bounds of the heavy lifting and transport industries. “I’d been working here and there for wages and was called to see And then there is “Rowan’s Truck”, a completely reworked what I could with the business after Jack had a stroke,” he said. Kenworth T908 road train prime mover adorned with “Back then we had 10 vehicles - trucks, utes and forklifts – now photographs of the son who stood in front of an oncoming train. we’ve got more than 130. I never dreamed it would get this big. The Kenworth is a star attraction at shows, giving Membrey “We’ve specialised in carrying various loads, from giraffes and the chance to strike up conversation’s about depression, drugs, elephants to spitfires. There’s not much we’ve not had on the back people who lose their way, and beyondblue. of our trucks. Membrey wears his heart on his sleeve and seems to hold little Membrey sees his business as a one-stop shop: “We class back when talking about Rowan and the events (including a ourselves as the most versatile crane hire company in Melbourne.” marriage break up) leading up to his death. He “loves” making public speaking appearances for beyondblue, “We spoke five days before he took his life. He told me he’d “it’s like a medicine to me”. been on ice and his brain was fried out. Membrey says he and Rowan argued over Rowan’s smoking and 14 “He had seen a doctor and been prescribed anti-depressants.” drinking. BY KEITH PLATT

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July 2013 | Frankston / Mornington Peninsula / Dandenong BusinessTimes | 13

feature: THE HEAVY LIFTER

Craig Membrey prides himself on being able to supply the right equipment for the job.

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“I grounded him. He ran away and I saw him nine months later in the morgue. “Unfortunately, he went his own way and got into a lot of strife.” Membrey says he, too, ran away “to sort my head out” the day after Rowan’s funeral at Berwick, which was attended by 2200 mourners. On his return he decided to dedicate the truck to Rowan and use it to publicise the dangers of depression. Once a meeting was arranged, it took little explanation to convince former Victorian premier and head of beyondblue, Jeff Kennett, that Membrey was serious about his mission, “not just another tyre-kicker”. Membrey describes the truck as “my masterpiece, my pride and joy. It’s for the memory of Rowan and a tool to help people out”. Membrey has now been at the company’s helm for 24 years, the past 10 months at the current South Gippsland Highway address. He still loves to drive his trucks and cranes, “my toys”, but is mostly tied to a supervisory role. The company has 50 staff (many “long term”), operates Australia-wide and prides itself on having repeat bookings from clients. “We do all the zoo’s animals. No one else does their animals,” Membrey says. Of all the heavy lifting challenges, it is the zoo jobs that are the most satisfying. “They’re awesome, I took the kids [Leah, 8, and Jack, 5] to see them in the trailers.” His fleet of vehicles, including cranes, includes specialised haulage equipment

“that you can’t buy in one day”. Last November Membrey was able to wprovide equipment to clear the wreckage when a train was derailed after hitting a truck on the Abbotts Rd, Dandenong, rail crossing. “We didn’t have to hire a thing for the job, but it takes time to build a fleet like this. You make a dollar and spend two.” Membrey has strong views on the Australian economy: “I think the country is coming into some pretty hard times.

76 Reid Parade (PO Box 428) Hastings VIC 3915

A Voice For Business Call Marg Harrison, 0414 773 153 or email marg@businesstimes.net.au

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business to business 14 | BusinessTimes Frankston / Mornington Peninsula / Dandenong | July 2013

P 03 5979 3927 F 03 5979 7944

Everything is falling into place. I think we’re in recession, but it won’t be announced until after the next [federal] government is elected.” Each week saw reports of companies retrenching staff while big government contracts – like the Wonthaggi desalination plant which provided him with work for two and a half years – were non existent. Membrey says Australians have been “living above our means and being spoiled” for the past decade. “Everyone has been too greedy. “But the balloon’s bust, accept it, that’s life.” Much of his company’s success is due to being versatile and buying the right equipment. He bought his first crane fours years after taking over from his father. “Maybe I should have rented one for the weekend and got it out of my system. “But I had a passion to get into cranes, I’d always wanted to be a crane driver.” A couple of years ago his fleet grew when he indulged “another silly passion” by starting a VIP limousine service. His personal vehicle is a 2008 Harley Davison F150 Ford ute. “I just like my toys, to be honest,” Membrey says, before coming back to a message for parents: “If you’re separated you must make the time if your kids are in trouble. You’ve got to help one an other out. “We’re all human, but we think we’re bullet proof.” sula Peninw.com.au o ington Morn.mybusinessn w ww 17 e Info@businesstimes.net.au 527 1 1300 www.businesstimes.net.au

e agazin ent m . excell y business r e h n and for m ew client t io n is e r r m se Ha an ppy Marg adverti we signed am very ha t un an e used I d “I hav s Times to r dvertisemen rtisement. ult achieve es in res dve st a a r e le fi e ic th r Busin h th d u e r ing o ed an reat v t. aid fo Follow ore than p g has provid proved a g South Eas ’s m as e ar h h n r M t ic I u h e . o w ic es lb e serv in Me ss Tim with th the Busine ess owners h in g s u u thro ch b to rea which ou Marg.” y nash Thank oach g) Mo rketin Executive C a M ( n ; la p il M a eG Wayn Business & r Maste

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Papers fold

MMP’s Knox Weekly, Monash Weekly, Cranbourne Weekly, Casey Weekly, Berwick-Pakenham Weekly, Maroondah Weekly, Peninsula Weekly and Frankston Weekly. It is rumoured the Journal has limited time to be economically viable. McCullough’s MPNG publishes Frankston Times, Mornington News, Western Port News, Southern Peninsula News and Chelsea-Mordialloc News. Publications run by the Fairfax organisation (including its flagship metropolitan daily The Age) and MMP seem destined to be produced – although not written – in India or New Zealand.

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5 The end to all but one of the eight Weekly brand newspapers in Melbourne’s south-east came last month, with MMP abandoning the market to arch rival Leader, Pakenham-based Star Newes Group and McCullough’s MPNG. Leader has ceased publishing its Hastings edition and runs its Frankston and peninsula editions from Cheltenham, leaving MPNG as the only remaining peninsula-based newspaper group. MMP’s boss, former Age journalist Antony Catalano, has admitted the company was losing millions of dollars to Leader publications. In an email to staff, particularly in the south-east, which has he accused News Ltd of undermining the made it impossible to compete fairly … company’s publications with payments to it is ironic that a media organisation’s real estate agents. kickback program is the cause of media “Our ability to gain new real estate jobs being lost.” advertising clients has been undermined  The Dandenong Journal is the sole by the millions of dollars News Limited   survivor of the cull that accounted for is paying to agents across Melbourne and

*Keith Platt worked for the Independent News Group and was regional editor on the Mornington Peninsula after Fairfax bought the group. He now works for the Mornington Peninsula News Group. BusinessTimes’ publisher Tony Murrell was a director and editor-in-chief of the Independent News. Group.

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Successful business professionals are using BNI to gain   Word of Mouth Referrals as a cost effective marketing  strategy. Why not pay a group a visit?   Locations Include: Berwick, Carrum Downs, Cranbourne,  Dandenong, Frankston, Hallam, Mordialloc, Mornington   (2 groups), Mt.Eliza & Pakenham.



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 For details see our website or call 9782 0555

BRACE

   

SkillsPlus



rtne across Victoria Working inopa m re locations



g in in a r T & n io t a Educ rship to offer more services in

iding • Advice on prov • Traineeships

the national depression initiative

www.beyondblue.org.au

ing • Certified Train in ed Courses deliver e • the Workplac

in RSA, • Short CoursesHandling od Fo d, Ai First ly in & Working Safe • ion ct tru ns Co

SkillsPlus is excited to announce its partnership with BRACE Education and Training. BRACE has an extensive history of providing high quality training support to businesses across Victoria’s Western regions and is now combining with SkillsPlus to collectively offer a broader range of services to more businesses across the state. For more information on how SkillsPlus and BRACE Education & Training can help your business, please call us on 03 9784 0400 or visit our website at www.skillsplus.com.au

July 2013 | Frankston / Mornington Peninsula / Dandenong BusinessTimes | 15

We’re on our way ...

PITCHER PARTNERS EXPAND Accounts and advisors Pitcher Partners will open a new office in Dandenong South, servicing the major growth region south east of Melbourne. With firms already located in Sydney, Brisbane, Perth and Adelaide, this is the first time Pitcher Partners has opened a greenfield office. Managing partner John Brazzale said he was excited tol be anchor tenant in the Pellicano-built office complex, the M1 Business Park in Dandenong South. “This state-of-the-art office will offer the highest level of services, facilities and technologies and provide greater convenience and accessibility for clients in the south east.” “Melbourne’s south east region is home to Australia’s largest and most dynamic manufacturing hub. It is diverse and widespread and hosts world-class tourist destinations, major retail, commerce and educational centres and has rich agricultural land and a burgeoning residential sector. This decision makes good strategic business sense for Pitcher Partners. “We see opportunities for growth of the firm and our clients within this major region given its large and growing population of 1.4 million people. Dandenong is set to become the thriving capital and multicultural heart, so an office in the region is an ideal location”, said Brazzale. “All levels of government have recognised the importance of the region, investing heavily in key projects that better support it such as Revitalising Dandenong and road and rail infrastructure projects including Peninsula Link and the $100 million upgrade of the Frankston rail line. “The announcement this week of the Victorian state government’s commitment of $110m to the Port of Hastings will drive even more activity. “We are committed to being part of the future here and are already actively involved in a number of local business and community initiatives. “We are part of business networking groups such as SEMMA, SEMIP and SEBN and will continue to invest our time, energy and resources in forging strong relationships with key business, political and community leaders and influencers in the region.” The new office will initially accommodate 35 staff and an events facility for up to 100 guests. Pitcher Partners is a full service accounting, audit and advisory firm and all services will be provided out of the new office. “Dandenong is known as the city of opportunity, and that is exactly what we hope these offices will bring to the entire South East region, our staff and our clients,” Mr Brazzale said.

to help you achieve your business goals.

Some of our experts Professional solutions for the South East

Pitcher Partners, a leading Melbourne accounting, audit and advisory firm, has been helping businesses like yours for more than 20 years. And soon, we will be opening an office in the South East Region to provide practical business advice and professional solutions in a location that’s convenient to you. For more information contact David Knowles or Vicki Macdermid on

FOCUS ON TRANSFER PRICING

(03) 8610 5000

Level 1, 80 Monash Drive, Dandenong South Vic 3175

Independent Member of Baker Tilly International

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www.pitcher.com.au/southeast

Transfer Pricing Solutions attracted more than 50 general managers and finance directors to Dandenong’s Ramada Encore on 25 June for an information session on the practical ramifications of new transfer pricing legislation. Grunt Guenther, of M+K lawyers, and Michael Jenkins, the assistant commissioner of large business and international at the Australian Taxation Office (ATO) provided insights and views on the new legislation. (See Networking P.9) The new legislation is likely to be in force from 1 July 2013.

16 | BusinessTimes Frankston / Mornington Peninsula / Dandenong | July 2013

PROFESSIONAL SERVICES

• Proactively assessing the company’s transfer pricing risk • Completing the International Dealings Schedule accurately • Including transfer pricing documentation as part of the company’s compliance process • Following up on implementation of transfer pricing policies and documentation Shannon Smit, director of Transfer Pricing Solutions www.transferpricingsolutions.com. au 03 5911 7001 find TFS on linked in and facebook.

Super Tax Exemption Clarified The government has made law changes to provide tax certainty for superannuation trustees and deceased estates in situations where a person has died while in receipt of a superannuation pension. Investment earnings derived by complying superannuation funds from assets supporting current pensions are generally exempt from tax. However, a draft tax ruling issued by the ATO

in 2011 caused some uncertainty over the eligibility of this tax exemption in situations following the death of a member to whom a pension was being paid. In response to the uncertainty, the government announced that it would amend the law to allow the tax exemption to continue following the death of the pension recipient until the deceased member’s benefits have been paid out of the fund (subject to the benefits being paid as soon as practicable). This is yet another reminder that superannuation, including self-managed super funds, is a complex continually changing subject area. Trustees and fund members need to remain vigilant and well informed. By Allan Williams, B.Com CPA MBA Dip FS, Managing Director of Flinders Partners Group, an accounting firm based in Frankston that has been servicing the Mornington Peninsula and South East Suburbs for more than 30 years.

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Shannon Smit, director of Transfer Pricing Solutions, said one of the main implications of the new legislation was its emphasis on documentation. Under the new rules, although not mandatory, taxpayers are strongly advised to prepare contemporaneous transfer pricing documentation by the time they file their income tax returns. The proposed legislation also includes new requirements for the documentation, including specific reference on how it is applied and emphasis on comparability factors. As a result, transfer pricing documentation prepared centrally overseas (parent company documentation) or documentation prepared in previous years may not be enough if it doesn’t meet the new requirements (for example, lacking analysis of arm’s length conditions and OECD comparability factors) especially if it doesn’t address in detail the transfer pricing position of the subsidiaries. Smit said companies with international related party dealings that wanted to minimise exposure to ATO action, should:

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July 2013 | Frankston / Mornington Peninsula / Dandenong BusinessTimes | 17

HEALTH

Be happy, but not too happy Every year the conference Happiness & Its Causes – held in Melbourne just recently – gets good press when some visiting experts say some nicely thought-out things about the happy state and how to grok it. You have to love the word grok, by the way. I do, because it sounds like what it means – to fully comprehend – and so many things in this world are in need of grokking. Such as, for example, Chinese medicine! I admit, however, that I have not yet been brave or silly enough to drop it into general conversation at the footy club.) Anyhow, are you happy? Hard question, eh! Most people in my experience answer that with “usually, or “it depends”, or “um … yeah”. And to be frank, I reckon any one of those is a good answer. We are not meant to be happy all the time. Content, yes. But deliriously euphoric? No way. In fact, it is downright unhealthy to be in a state of constant joy. Chinese medicine says that too much “joy” scatters your energy and injures your heart and mind. The ancient theorists of Chinese medicine were right about most everything, so are bound to be right about this too. What they meant was that a constant state of pleasure – euphoria – whether achieved naturally or chemically eventually weakens the heart and damages the mind, which is to say that it makes you more prone to both heart disease and to mental illness. While joy is certainly a pleasurable emotion, too much of it is just as bad for you

Michael Ellis*

Chinese Herbalist

We are not meant to be happy all the time. Content, yes. But deliriously euphoric? No way. In fact, it is downright unhealthy to be in a state of constant joy. as an excess of any emotion. When the communist government of China opened its borders in the late 1970s, one of the things that drew people in the West, particularly Americans, to Eastern medicine was its understanding of the way the emotions affected health. Chinese medicine describes how the “seven emotions” – traditionally given as being joy, fear, worry, anger, grief, shock and sadness – if overly emphasised eventually impact on the physical body and generate disease. It says that diseases fall into one of only two categories – those caused by external factors like viral pathogens or traumatic injury, and those caused by internal disharmony due to the seven emotions. This is a big statement when you think about it: all internally generated disease is caused by the emotions. At the same time, we understand that all

18 | BusinessTimes Frankston / Mornington Peninsula / Dandenong | July 2013

the emotions are natural and normal and necessary to a full, rounded, appreciative life. It is healthy to experience all these emotions at different times because they are our evolved responses to the circumstances of birth and death and everything in between. However, we should possess them for an appropriate time. Emotions become pathological if they possess us. In other words, we should not become “stuck” in any one emotional state, as that will begin to produce illness. In general terms, a constant state of fear weakens the kidney system, unresolved anger damages the liver, becoming stuck in one’s grief depletes the lungs, and worry knots up the digestion. And too much joy weakens the heart and mind. The thing is, here in the West, we’re stuck on needing to be happy all the time, fixed on the pursuit of pleasure and satisfaction. In fact a good explanation for the depression epidemic in Western society is an overemphasis on happiness, and the thinking that there is something wrong – that you need treatment of some form – if you’re not getting about in a state of blissed out nirvana. Paradoxically, maybe we’re not suffering enough! (I hereby absolve any St Kilda supporters from this discussion.) While the conference was on in Melbourne, a fine article on this subject – “Are we caught in a happy trap?” – led The Sunday Age (you can still Google it). It suggested that wanting happiness for our children, and therefore protecting them from the struggles of life, actually backfires in the long run. We want to shield our children from life’s harsh realities, but in doing so we run the risk that they are so protected and mollycoddled that they know only happiness. In indulging them we produce adults who are not rounded individuals, who lack empathy and resilience, who do not cope well with the slings and arrows that inevitably come their way once out of our protective orbit, but who are emotionally immature, hedonistic, dissatisfied and depressed. What a typical human paradox it is that showering a child with “happiness” does not produce a happy adult, and that the relentless pursuit of it as an adult is equally hazardous to one’s health. * Michael Ellis is a registered Chinese herbalist in Mt Eliza. More articles at www.mtelizaherbal. com.

MARKETS

The $A and recession Here’s a thought experiment: what would happen if our Reserve Bank followed the US formula and cut rates to near zero and started buying bonds, preference shares and anything that vaguely resembled a fixed interest security? Would interest rates fall? Would our economy fire up, creating jobs that allow young people to buy houses? The answer is immediately clear. What may work in the US may for a dozen reasons fail here. The Reserve Bank has been very cautious about slashing rates for fear of a slump in the $A which would sharply raise the cost of imports. There would also be outrage from many quarters. Retail executives would bellow, retirees would bemoan the cost of overseas’ trips and the price of IT goods, most clothing, much food and luxury cars would jump. But the flip side is that our big export items like in-bound tourism, education, mining and agriculture would lift or even boom. Tax receipts would improve. Certainly the value of rural properties would rebound and the $50 billion of non-performing cattle property loans would not be an issue. Ford might change its mind about closing Geelong and Holden might do a U-turn and even lift wages to secure top staff for exports of people movers designed specifically for the Middle-East. Longer term thinking might even prevail: CSIRO’s expertise in aluminiumscandium alloys might lead to new national industry. The world has a need for light and strong aircraft and vehicle bodies. Needless to say our Reserve Bank will not take any such bold steps. Unlike the US Reserve Bank it still has a belief in the capacity of markets and entrepreneurs to adjust. It is also caught in a myth of our own making.

Richard Campbell* Stock Analyst

Our unemployment rate is just 5.6 per cent even though it is a constructed figure which counts one day’s work a week as employment. Our future as an exporter to China is secure even though its new Politburo is trying to reduce its massive over-capacity across dozens of exports industries without scarifying too many jobs. China is also distant and obscure. It was not widely noticed in mid June that the new administration suddenly applied the brakes. The Shanghai inter-bank rate rose to 7 per cent in what appears to be the first step towards a sweeping credit restructure later this year. With loans now at 220 per cent of GDP the warning from the rating agency Fitch that China’s credit system is “unprecedented in modern history” and “out of control”. A blow out from $9 trillion to $23 trillion in five years will be noted by the Reserve, but as China’s “shadow banks” carry the bulk of the bad debt there will be no alarm. China has large reserves and it would be poor form to dispute the claim of the big banks that their bad debts under 1 per cent even though logically they must be much higher as these banks funded not only lent to struggling state corporations but to many dubious “lending agencies”. Their losses are not clear but Fitch and others believe they will range up to 20 per cent of all lending – perhaps more. Anything above 4-5 per cent

means wipe-out. The causes vary from plain miscalculation, belief that off-shore demand was far larger than it is, uneconomic job creation projects and everywhere small and large-scale fraud. Of course markets will act on their own information. The great US experiment in money creation may prove to be a stunning success. If so the US$ will rise further and depress ours. An $A at 70c would be very welcome for the traded sector of our economy. Exports of goods, minerals and food would surge. Master companies like Cochlear and CSL with large off-shore revenues will flourish. They will be far preferable to banks reliant on income squeezed householders whose costs would rise. Gold stocks would recover. Quality small caps with export paths would leap. The alternative is also possible. The US debt of $16.738 trillion (not counting unfunded liabilities) may loom large if an economic take-off isn’t firmly established. Worries may creep in as the Fed slows its massive asset purchasing program and if money circulation remains weak. Ten and 20year rates could rise and the US dollar retreat especially if China and others sell US bonds to recapitalise their banks. Our dollar would rise and our tax receipts fall. And so investors need to remain alert, sceptical and a little bit afraid. Better to be cautious than accept the blandishments of bank CEOs who, as home lenders, insurers, FX dealers, fund managers and financial planners, do not want to worry their many and diverse customers about things like recessions. * Richard Campbell is Executive Director of Peninsula Capital Management, Tel. 9642 0545. rcampbell@peninsulacapitalmanagement.com.au

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online campaigning

More mobility in advertising

Users of Google Adwords will have to upgrade as the search engine giant rolls out its new enhanced campaigns strategy, according to Tony Sambell, of Spicy Web Design. Sambell, a Google AdWords certified partner, says that enhanced campaigns is a first step to help businesses more simply and smartly manage advertising and marketing in a burgeoning multi-device world. Google says it is responding to the growing number of people constantly connected and moving from one device to another to communicate, shop and stay entertained. It says a survey of multidevice consumers found that 90 per cent move sequentially between several screens to accomplish a task. “There’s also a proliferation of new devices — PCs, laptops, tablets, smartphones, hybrid devices, mini-tablets, televisions, and more,” says Google. “And there are many more digital screens and devices to come, with the lines between them continuing to blur. For example, as devices converge, consumer behaviors on tablets and desktops are becoming very similar.” Google is saying that this creates opportunities for businesses, but can also make marketing more complex and time-consuming as people seek different services from the same company at different times of the day. However, its says that with enhanced campaigns, businesses can easily manage separate campaigns, reports and ad extensions in one place. The Google spiel is that enhanced campaigns help businesses reach people with the right ads, based on their context like location, time of day and device type, across all devices without having to set up and manage several separate campaigns. Tony Sambell says that while enhanced campaigns bring many new benefits, if Adwords users don’t upgrade properly, they could be showing ads to the wrong devices. “Your ads could stop showing all together, you could end up paying more per click and you could be missing out on great new advertising features,” says Sambell. “Enhanced campaigns let customers access your website on any device they search from – mobile, tablet or desktop – all in a single campaign.

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20 | BusinessTimes Frankston / Mornington Peninsula / Dandenong | July 2013

“They give you the ability to show more appropriate ads to your customers depending on time, location and/or device. “Enhanced campaigns also give you better tracking opportunities.” While all Adwords campaigns will be automatically upgraded to enhanced campaigns starting 22 July, if a phone number appears in an advertisement text, the ad will become disapproved and stop showing, says Sambell “Enhanced campaigns bring many new great features to give you a simple and strong advertising campaign, but the automatic upgrade can cause issues so make sure your campaigns are upgraded correctly.” Call Spicy Web Design for help on the enhanced campaign roll-out.

AVOIDING BAD DEBTS

• Be specific about the amount of money that will be due after the goods/services have been supplied. • Get the consumer to confirm in writing that they agree with the terms of the contract (again even if only by way of email that is better than nothing). • Keep a hard copy of all communication between you and the consumer in case you need to produce it later in evidence. While phone conversations between you and the consumer will be admissible in evidence, your case will be so much stronger if you have something in writing to back you up. Don’t forget you can also choose to mediate your dispute to reach an outcome, which may be more beneficial than dealing with the dispute in an adversarial manner. *Tanya Thistleton is employed at White Cleland and practises mainly in Family Law. She is the author of Just and Equitable, a novel about lust love and family law, as well as having written widely on the subject of family law both in Australia and overseas.

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Running a small business is not easy, having to chase bad debtors makes it even harder. No doubt those running a small business

can identify with the following scenario: Ed runs an advertising agency and sells some advertising to Bill. Bill approves the advertising and signs off on the proof. The price has been discussed over the phone and since Bill has advertised with Ed before nothing else is signed. The deal is done over the phone. After the first ad appears, Bill refuses to pay his invoice claiming the amount is wrong. And this is where the dispute starts. Neither party has much in writing to confirm their position, and if the dispute was heard by a court or tribunal, the matter would have to be decided on each party’s version. A final decision would be made based on whose version is the more likely. While you can never avoid disputes such as the one Ed and Bill have, you can try and minimise them by implementing the following steps (and of course strengthen your position if a dispute has to be determined by an independent third party): • Make sure you put the agreement in writing (even if it is simply in the body of an email).

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July 2013 | Frankston / Mornington Peninsula / Dandenong BusinessTimes | 21

MANAGING

Recruiting for performance Time comes in every small business when it is necessary to hire a new person to help to sustain or grow your business. This situation may be caused by a variety of factors, like one of your current team leaving for a better opportunity, a retirement or just the need for new capacity. It really doesn’t matter what drives the need, but it does matter how you manage the process of recruitment, as it will define your long-term business performance. Most of the recruitment hard work needs to be done before you actually start looking for people by developing a comprehensive concept of both the specific position and the ideal person. One of the first considerations is to decide if you want someone who can just implement your current strategies and processes or someone who can be a positive agent of change. The first option is relatively simple, as you know your current processes and people and you can look for these characteristics in your new person. The change agent option is more challenging and harder to define, as your current people may be so invested in your current processes that they are resistant to change. The change agent specification may require more experience and more people skills to be able to implement successful improvements. It is valuable also to analyse the current specific skills and contributions of your existing team so that you can identify gaps or weaknesses that a new team member can bring to the team. To prepare this inventory and to assist in the assessment of candidates, there are five main assessment areas to be examined. The first two relate to the hard skills for your business processes – the specific technical skills that have been developed through formal training, and the level of experience in application of these skills. For example, you may have a majority of longer serving people who may not be up to date with the latest technologies and hence your skill gap would be in relevant new and emerging technologies. In this case, a recent graduate who has the knowledge of these emerging technologies could fill your skill gap. In examining your experience gaps, it may be beneficial to think outside the box and identify another business that might have relevant parallel business processes, where you could short-

Hamish Petrie*

Business Consultant

Before you start your external recruitment process, you should check to see if there are internal candidates who could benefit from or grow into the identified role with the result that you hire a more junior person to replace them. circuit your learning by hiring someone from this business. The next two assessment areas cover the soft skills – the basic personality of the person and their attitude to learning. The basic personality attributes are usually well developed by the teenage years and they are generally accepted as including openness, conscientiousness, extraversion, agreeableness and neuroticism. Understanding a little of each of these characteristics can help to understand how a person will behave in your business. You can start to understand these aspects by asking candidates to describe how they think they would react in a specific scenario typical within your business. A person’s attitude to learning will be a large factor in shaping how they will grow and develop within your business, so it is important to assess this characteristic fully. Some people are hesitant to step outside their comfort zone and take on risks, whereas others may love the adrenaline rush of high-risk situations. Again, these attitudes can be assessed through asking for the person’s expected response in specific business scenarios. If you are recruiting for a long-term team member, then his or her attitude to learning is very important, as you want to hire someone who will grow with your business. The final area of assessment focuses on results. At the end of day, everyone is assessed on their contribution to the businesses results. With more junior positions, this is often difficult to assess, but with more senior positions, it is critical to be able to determine the specific contribution that a candidate has made to a substantial

22 | BusinessTimes Frankston / Mornington Peninsula / Dandenong | July 2013

business result. From this analysis, you can develop a specification of the personal characteristics that you believe represent an ideal candidate. You can also develop a series of specific questions that will allow you to develop insights and comparisons of your candidates. Before you start your external recruitment process, you should check to see if there are internal candidates who could benefit from or grow into the identified role with the result that you hire a more junior person to replace them. When you have developed your short list of candidates, it is valuable to resist the natural temptation to focus on the hard skills needed for this specific job by focusing on their respective soft skills. This is particularly important if you are looking for a change agent candidate, whom you expect will be able to engage your current team to try new ways of running your business. In making your final choice, it is important to identify the risk aspects of your selection. This will assist you to identify what specific type of support they will need during their initial assignment in your business. You and the successful candidate can then develop a plan for their entry, and specific time checkpoints that will help to ensure their early success. Overall, recruiting is a very important process as it can enhance your current team’s capability and results, so careful thought and planning of the whole process will be well rewarded. Action Planning Questions: • Have you considered hiring in a “change agent” to help stimulate improvements in your business processes? • Have you developed a skill inventory of your existing team and identified gaps to be filled by a new hire? • Have you considered internal candidates even if this means a restructure of existing jobs? • Do you focus more on soft skills during interviews through targeted questions? • Have you developed an entry strategy for new people to support their weaknesses? *Hamish Petrie had a 37-year corporate career including 25 with Alcoa Inc. His latest position was VP People and Communications for the Global Alcoa Corporation based in New York. He can be contacted at hamish@nitroworld.net or on 0404345103. © Hamish Petrie 2012

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