Businesstimes september 2014 by Keith Platt

business & NETWORKING: Frankston | Mornington Peninsula | Dandenong

September 2014 | FREE

TASTE FOR CHICKEN INGHAMS ups the OUTPUT to MEET OUR growing APPETITE

career plan keep on learning about yourself

winning drop

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first pinot gives handpicked a hand up

who/what/where

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ISSUE 49 / SEPTEMBER 2014

FRANKSTON / MORNINGTON PENINSULA / DANDENONG

TaSTe For n cHicKe

2014 | $4.95

(GST inc.)

COVER: Alan Wilson steered Inghams Enterprises back into business at Somerville after a disastrous fire and is now busy riding Australia’s rising taste for chicken, and Jamie Oliver. PAGE 12 Cover photo: Keith Platt

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

planlf erabout yourSe caonre learning keep g drop winninhandpicked a hand up

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

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Inside Columns Networking: Ivan Misner Social media: Jessica Humphreys Health: Mike Ellis Markets: Richard Campbell Managing: Hamish Petrie

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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

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features TRAVEL TIME: A new hop-on, hop-off bus service aims to stimulate tourism.

Make sure every business knows your business. For advertising, contact Marg Harrison on 0414 773 153 or marg@businesstimes.net.au

HANDPICKED PRIZE:

Gary Baldwin, winemaker for a Sydney-based company, wins gold with his first Mornington Peninsula crop.

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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CHANGING HANDS

UK firm snaps up yoghurt plant “If you run a good business you’re bound to get interest from the bigger guys in your space,” is the straightforward answer from five:am founder David Prior on the reason for the successful sale of his company for $80 million. Named after his routine of getting up at five in the morning to meditate, do yoga or check the surf, Prior says the sale of organic yoghurt maker five:am to British-based PZ Cussons was settled over a four-months period. The “pretty good process” was achieved with the help of the Macquarie Group, which was originally hired to find a suitable partner for five:am’s expansion into Asia. PZ Cussons’ brands in Australia include Morning Fresh, Radiant, Duo, Imperial Leather, Original Source, St Tropez, Sanctuary Spa, Fudge, Fudge Urban and

Mornington Peninsula

David Prior has just sold his five:am organic yoghurt business to Britishbased PZ Cussons for $80 million.

Rafferty’s Garden. Mornington Yoghurt-making equipment was Peninsula installed at the Carrum Downs plant in 2010 and containers of five:am went on Woolworth’s shelves in March 2011. Prior remains at five:am until October the end of a three-month transition - and then assumes the role of a non-executive director. If profit projections are reached in 2015 he stands to receive a further $14m.

In 2013/14 five:am recorded revenue of $35.6 million. In June 2012 Prior told BusinessTimes he decided to make yoghurt after a year in which he did “lots of surfing and yoga”. Previous to that he helped his father Malcolm run and then sell (to Amcor) the Beroda packaging company at Braeside. At the time said it was the thought of tasting the fruitcake and muffins every day that put him off buying a ready made profitable business. Instead of eating fruit dyed with chemical colours and cake made with bleached flour he opted to start his own company. “It was a much bigger risk, but I was following my heart and my head. I didn’t want to produce something that’s Mornington rubbish.” Peninsula

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Leading the vibrant team is well known Peninsula local, Jarrod Carman. Leading the vibrant team is wellinto known local, Jarrod Carman. Our entire team welcomes you to drop 176 Peninsula Main Street to say hello and experience Our entire team welcomes you to drop into 176 Main Street to say hello and experience a fresh new approach to real estate. Caitlin Broomhall

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September 2014 | Frankston / Mornington Peninsula / Dandenong BusinessTimes | 3

profile

n Bizzquiz: house in Mt Martha. “Ten years before I took on the business there had been no less than seven different owners of restaurants there,” he says. “I had a nineyear run.” “Without the input of my wife Sally I would never have survived.” I dreamed of being … able to fly.     My first paid job was ... cleaning ink from mounting blocks at Rolls Printing in Tooyal St, Frankston. Saturday mornings in a little windowless room with buckets full of little metal blocks soaking in methyl ethyl butyl ketone. A company would be jailed for making someone do that these days. I was paid $3 every week; it was about 1970. In 10 years I will be ... 65, hopefully, running a small farm somewhere in central Victoria with my wife, dogs, livestock and a huge vegie garden not too far away from a golf course. Our business planning entails ... guessing how much food to buy and how many staff to have a week ahead, even a couple of days sometimes. In the past, as the business grew, we would plan for more space to

seat more customers. Of course soon after that there would be an economic downturn and we would be twiddling our thumbs when the restaurant was nearly empty. Then things would improve again and the ever-present worry about staffing levels would be apparent. Tip for success ... work hard, be nice and plan well. I am inspired by ... seeing how many restaurants go bust. Sounds cynical, but it makes me worry and when I worry I work harder and try to spend less so that I don’t fall victim. Anyone starting a business ... should have their heads read.     I'll know I'm successful when ... my dream comes true. See the first question.     My mother and father always told me ...  My father told me to work hard and my mother's favourite saying was ‘you can't have fun all the time’. I should have had therapy. No wonder I started my own business. I wish I had … crayfish for dinner tonight.    I wish I had not … hooked that last drive on the 18th at Devilbend; its a killer second shot from there.

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Restaurateur Bernard Ricca calls himself a Pines boy. He attended the first primary school in the then Housing Commission’s Pines Forest Estate at Bernard Ricca Frankston North, Regardz Restaurant “eventually, in Moorooduc grade six I went to St Anne’s Primary, Seaford”. Then came Padua College with the Sisters of Mercy in Mornington, then back to the Pines at Monterey High School then Bendigo University to study science followed by dairy research at the CSIRO, opal mining at Coober Pedy, a battery factory at Sandringham, surfing, studying biology, Frankston Teachers College and finally a uni qualification at age 29. During college he washed dishes in a restaurant. “Oh my god, can you believe all that education and I end up cooking for a living.” Ricca’s first restaurant was the Smoke-

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BusinessTimes Frankston / Mornington Peninsula / Dandenong | September 2014

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TOURIST TRAVEL

Explorer makes inroads for peninsula tourism

tractions in an easily accessible manner”. The research showed that more than 90% of visitors to the peninsula either drove themselves or visited venues within walking distance of public transport. Just 3% come from overseas.

ENERGY FOR BUSINESS. It’s all we do. And that’s good for you.

The solution was seen as being “a flexible and convenient shuttle bus service, linking the major attractions in a fun and engaging way for visitors”. The Peninsula Explorer’s circuit route is based on successful services running in several Australian cities and regions. Passengers on the Peninsula Explorers double-decker 80-seat open top buses will hear an on-board commentary as they travel between attractions. Starting in October, the first “phase” of the service will run in the southern peninsula, with hourly stops including Peninsula Hot Springs, Point Nepean National Park, Eagle Ridge Golf Course, Boneo Maze and Cups Estate winery. If successful, the service will be extended to include Arthur’s Seat and Red Hill. Projections show the Peninsula Explorer carrying 62,000 passengers in its first year, including peninsula residents and 17

s s

A new hop-on hop-off bus service starts on the Mornington Peninsula next month. The Peninsula Explorer is run by a consortium of private businesses including Peninsula Hot Springs, the Driver Group (Grayline coaches), Searoad Ferries, Bunyip Tours, City Sightseeing, Portsea Hotel and PricewaterhouseCoopers. General manager Paul Sandells is a former director of Werribee Park and general manager of Visitor Experiences at Healesville Sanctuary. Planning for the bus service started with a feasibility study in 2008 followed by “extensive dialogue” with Mornington Peninsula Tourism and “key tourism operators” in the region. The strengths of the peninsula tourism – “quality and diversity of its visitor attractions” – were judged to be suffering from a “lack of a reliable and convenient transport system that connects these at-

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BUSY BITES

Guaranteed supply Gas and chemical supplier BOC has secured supplies of the refrigerant ethylene for the next decade with an agreement with Qenos. BOC last month announced a 10-year ethylene sourcing agreement with Qenos, Australia’s sole manufacturer and supplier of polyethylene and polymers. Under the agreement BOC will receive up to 1800 tonnes of ethylene a year, with first delivery expected in the third quarter of 2015. The agreement includes terms for the installation of an ethylene tanker filling bay at Qenos’ Altona site and infrastructure at BOC’s Greens, Rd, Dandenong plant. BOC will use the ethylene to service the LNG export industry. This announcement follows BOC’s 2010 $65 million upgrade of its Dandenong air separation unit and LNG facilities.

Phone betting

The Fair Work Ombudsman expanded the range of internet resources for employers, employees and higher education institutions to promote a clear understanding in the community about what constitutes legitimate unpaid arrangements and vocational arrangements under the Fair Work Act. Materials include new ‘fact sheets’, covering: Unpaid internships and work experience that should constitute mainly observation, rather than productive work, not run for a long period of time, not be work that a normal employee would perform, not require the person to come to work or perform productive activities and mostly benefit the person, not the business/organisation. Unpaid trials, that are only appropriate when they involve demonstrating a skill directly relevant to the job, are only as long as necessary to demonstrate the job skill –dependent upon the type of work and could range from an hour to a shift – and there is direct supervision for the whole trial. Vocational (student) placements are lawfully unpaid if there is a genuine placement, a requirement as part of an education or training course, no entitlement to pay for the student work and approval for the placement from the education provider. Industry specific information for print and broadcast media, legal and marketing, the hair and beauty sector and cafes, restaurants and accommodation. The new resources are available at www.fairwork.gov.au/unpaidwork

INSOLVENCY ACTIVITY FAlLS The Australian Financial Security Authority (AFSA) released regional personal insolvency statistics for the June quarter 2014. Nationally, the number of debtors entering

a personal insolvency fell 10.1% in the June quarter compared to the March quarter. The main contributors to this fall were New South Wales and Victoria: Greater Melbourne fell 12.4% and falls were recorded in 27 regions in the Melbourne area. The main contributor to the fall was Casey. Debtors in the remainder of Victoria fell 15.6%, with falls recorded in 15 regions. The number of Australian debtors entering into a business related personal insolvency fell 18.1% in the June quarter compared to the March quarter.

FLEXIBILITY GIVES COMPETITIVE EDGE Global workplace provider Regus says 92% of Australian respondents to its latest survey believe large businesses that utilise flexible work options have a competitive advantage over rivals. Regus canvassed the opinions of more than 19,000 business owners globally and found the top capabilities big companies can learn from small businesses included: • The ability to make decisions quickly (58%) • The ability to react faster to market changes (37%) • The ability to have a better understanding of their customer base (33%) Regus Australia and New Zealand CEO Paul Migliorini said: “Big businesses employing flexible work options are discovering they can react more effectively and efficiently to the changing markets. “Small to medium sized businesses have driven this result, which is invaluable for organisations operating on an international level.” More than nine out of 10 respondents reported that flexible working leads to better morale in the workplace (92%) as well as an improved work-life balance (93%). “The research also showed that it is not only staff morale that benefits from flexible working but the bottom line does too – with cost savings and improved productivity highlighted as rewards,” Mr Migliorini said.

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SAVING TAX PAPERWORK Xero reports that small businesses using its software have submitted more than 140,000 new tax file number declarations to the Australian Taxation Office in the past 12 months. Submitting the declarations electronically has saved an estimated $100,000 in postage costs and more in time costs. Ensuring payroll compliance with the ATO is critical to avoid fines, audits, penalties, and to meet legislative requirements. This has traditionally been a manual process that involves posting paper forms, downloading files, and even sending CDs. Xero has a built-in Payroll feature doing all the hard yakka. Xero Payroll automatically handles superannuation increases (from 9.25 to 9.5 per cent) and new taxes.

KATE WINS YOUNG BUILDER AWARD A 29-year-old Seaford woman has been named the first ever female Young Builder of the Year (Commercial) at the Master Builders Excellence in Construction Awards. Kate, who is Kane Constructions contracts manager, received the honour for her ‘reliable and positive attitude’ and experience on projects ranging

in scale from $1 million to $75 million. She has worked with Kane Constructions since November 2006. “[Kate] takes the lead in procurement, administration procedures and cost management systems [and] quickly develops strong relationships with her clients, consultant team and subcontractors,” her CV states. Master Builders CEO Radley de Silva said that Kate epitomises the future of the Victorian commercial construction industry. “Kate meets the challenge of working in a maledominated environment with aplomb and has the right attitude and skills to take her far in this industry,” Mr de Silva said. “This is a well deserved win by Kate who is an asset not only to Kane Constructions but to the construction industry as a whole.”

rpp celebrates 5oth business show

Jacki Mitchell, RPP FM host of award winning radio program Taking Care of Business (TCOB) celebrated her 50th show with regular guests who shared their top five tips in their area of expertise. TCOB focuses on communication and imparting knowledge and airs live 11-12pm Fridays on 98.7FM. Pictured from left are Richard Goldsmith of CarrollGoldsmith Lawyers, Marg Harrison, BusinessTimes sales director, Jarrod Carman, principal of Eview Mornington Peninsula, John Ross, of Ethos Financial Advisory, TCOB host Jacki Mitchell, and John Young , Young Digital Group owner. Photo: Rab Siddhi

Business party line A new political party is being formed to represent small business. John Codrington, founding national president of Small Business Party of Australia, announced his intention to register the party with the Australian Electoral Commission during question time at the opening address of the 12th National Small Business Summit in Melbourne. “We want to advocate for the needs and issues of small business and will enter the political system to have our voice heard.”

Empty spaces Greater Dandenong Council will decide in October on the future use of vacant buildings at 39 Clow St, Dandenong, and the former library in Stuart St. Both are vacant following opening of the new Civic Centre in Lonsdale St. Public comment is being sought, although council’s preferred option is for the Clow St offices to have a mix of commercial leasing and council offices and that the former library be demolished, with the space used for parking and an outdoor eating area associated with the market. Council will start a master plan in early 2015 for the market site, the Clow St offices, library site and land bounded by King, Clow and Stuart streets and Sleeth Av.

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Other key advantages to flexible working include: • Improved worker health (88%) • Increased productivity (81%) • It is increasingly demanded by prospective employees (72%) • Cheaper than fixed office working (64%) • Boost in innovation (61%) Mr Migliorini said that Regus hubs around the globe gave big businesses the advantage of flexible working – from virtual offices to video conferencing and business lounges, which in turn, delivered increased connectivity.

September 2014 | Frankston / Mornington Peninsula / Dandenong | BusinessTimes | 7

NETWORKING gallery

1. Frankston Wine and Food Society held its Winter lunch on 6 August at Taggertâ&#x20AC;&#x2122;s Restaurant, Frankston International. Special guest was Ross Brown, executive director of Brown Brothers Winery. Everyone enjoyed the wonderful food by Anthony McHale head chef at the International and specially selected Brown Brothers wines. From left

Ross Brown, CEO of Brown Brothers, with Rob Thurley and Kevin Johnson at the latest Frankston Wine and Food Society luncheon. 2. Peter and Sandra Darbyshire at the Frankston International lunch. 3. Guest speaker Ross Brown with bon vivant Max Butler at the Frankston Wine and Food Society. 4. Sam Hanna (left), Ros Walsh and Peter Jupp. 5. Dandenong Business Network held its monthly meeting at Keysborough Golf Club on 13 August. Mark Paturzo, of Mortgage Choice Carnegie, with Darius Mikolajewski, of Best Web Design Melbourne. 6. City of Greater Dandenong hosted the Dandenong Chamber of Commerce networking night at the their new offices on 14 August. Nick Ritchie, of Quest Dandenong, with Dandenong Mayor Jim Memeti and Lionel Applebloom, of C & J Legal. 7. Helen and Julie Stephens, of Link Employment and Training with Trish Keilty, of Avocare. 8. Hakan Vatandas, of Shisham Products, with Jackson Malley, of Aussie Berwick, and Simon Lynch, director of UBS Wealth Management.

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9. Paul Broom, of LMA, with Gerard Kennedy M + K Lawyers with John Bennie, CEO of City of Greater Dandenong. 10. Michael Stapleton, of Pro Veritate, with David Wilson, of DWA Toorak.

11. Peninsula Business Network held its August breakfast at Barmah Park on 19 August. Real estate agent Honor Baxter, John of Boyz for Breakie, Mornington, and Adele Dames, of Blue Ribbon Business Solutions. 12. Jason Glanz, of Devilbend Golf Club, with Jodi Clarke, of The Hypnotherapy Clinic. 13. Stephen Groundwell, of Ethertech Coputer Services and Joe Coppola, of Care Care Peninsula.

14. Mornington Peninsula Tourism held a seminar at Brooklands Mornington on 22 August. Pictured are Alva Heming, executive officer of MPT with guest speaker Despina Karatzias, who advised on how to overcome the 10 top marketing mistakes. 15. More than 50 people were at NABâ&#x20AC;&#x2122;s self-managed super funds seminar at Mornington Racing Club on 21 August, including Pat Healy, of East West Homes, and Melissa Cannon, of NAB. 16. Mornington Chamber of Commerce held a breakfast at Mornington Racing Club on 26 August, among those there are Nerida Cowling, Charlyne Manshanden, of Iconic Hospitality, and Larisa Ryan, Fernwood Fitness, and Brodie Crowther, High View Accounting. email marg@businesstimes.net.au if you have something to share.

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Ideas

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Taking Care of BUSINESS Friday 11am to 12 noon 98.7 fm with Jacki Mitchell |

Expert Opinions

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September 2014 | Frankston / Mornington Peninsula / Dandenong BusinessTimes | 9

NETWORKING

Who’s in your room? What if you lived your entire life in one room? Whoever you want to interact with in life – is in that room. You can continually change your room to include any and all the new possibilities that you might like to have in your life. However, there is one unique feature to this room that will never change – it has only one door. It is a one-way door with a sign that says; “enter-only.” There is no exit. Whoever is in your room, stays in your room forever. Whoever comes into your room and whatever they bring with them, cannot leave – ever. If this were true, would you be more selective about the people that you let into your room? When I’ve asked people this question, I have always received a resounding “Yes, I would be a lot more selective.” So, what kind of room have you created? If you live a life with drama all around you, then what people did you let into your

Dr lvan Misner*

Networking specialist

life that created that drama? If your life is full of chaos, who was it that brought that chaos into the room? Are there harsh, angry, or toxic people in your room? If so, who allowed them in? Does your life feel frenetic and complex? Could it be that you let too many people (especially the wrong ones) into your room? Right about now, most people to whom I’ve introduced this concept are having an “OMG moment.” I can actually see the wheels turning by their expressions as they think about the type of room they live in. One woman I spoke to said: “my life is like the waiting room of an ER, I keep letting in one wreck after another.”

Stop for a moment and think, “who’s in your room?” Take a quick inventory. Ask yourself how you might have lived your life differently had you known that anybody you let into your room might actually be there forever. Then think about how, going forward, you are going to determine which people to let into your room and the ones you’ll keep in the foyer. The people in your room profoundly affect the view you have of yourself and your life. At this point, it doesn’t actually matter how any of the people in your room got there, what came in with them, or whether you can get them out. You may have invited them in or they may have pushed their way in. They may be in your room because they are family or because you think you need them. If they are in your room, one way or another, their presence greatly impacts the quality of your life – for better or for worse. Going forward you can become vigilant and attentive to who’s knocking on your door. You can learn to manage who and what has already gained entry. You can set

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10 | BusinessTimes Frankston / Mornington Peninsula / Dandenong | September 2014

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about this concept before letting them close to me?” This concept fits perfectly with building a powerful personal network. The people we bring in close to us should be people we want to work with. They should be people who share our values and our passions. Understanding this simple concept can help us choose between a person who we think has a skill set we need vs a value set we wish to emulate. We design the room with the people we live in. We can do that consciously or we can do that by happenchance. The choice is ours. “Who’s in your room?” Knowing this concept now – what would you do different in the future? I’d love to hear your thoughts. *Dr Ivan Misner is a New York Times bestselling author. He is founder and chairman of Business Networking International (BNI), the world’s largest networking organisation. Dr Misner is also senior partner for the Referral Institute, an international referral training company. Email: misner@BNI.com

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BUSINESS FUNDING, SUPPORT A Frankston workshop this month will offer businesses advice about the availability of funding and support services The workshop at Frankston Arts Centre opens at midday on Monday, 8 September Included will be an interactive workshop to help identify regional priorities to support business growth; presentations from the Department of Industry about available funding and support; and an update from a representative from NBNCo. Called New Opportunities for Business Growth, the workshop is being hosted by South East Melbourne Councils’ chair Cr Paul Peulich. Featured will be an address from Small Business Minister and Dunkley MHR Bruce Billson. Learn and share ideas about how your businesses can re-focus and innovate and help plan for our region’s future by addressing key challenges and opportunities.

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better guidelines that determine who you let inside as well as how to manage the current occupancy and what they brought with them. You might not be able to permanently eject people or things that are already in your room but you can definitely – permanently – change how those people and things occupy your space. The quality of your life is a direct reflection of who is in your room. How you manage who you let into your room, your life, or your network is very important. How do you go about choosing who you let in? The answer is a “metaphorical” doorman or a conscious awareness of your values and passions. Do you know what they are? If not, you need to spend time thinking about the values you hold dear and the kind of people you want to be around. Nobody gets in who doesn’t meet your personal values. Ask yourself; “are there people close to me that don’t live my values now? Would I have let them in if I had thought

September 2014 | Frankston / Mornington Peninsula / Dandenong BusinessTimes | 11

cover story: ALAN WILSON, INGHAMS ENTERPRISES

A growing taste for AUSTRALIA’S TASTE FOR CHICKEN APPEARS BOUNDLESS. IN 50 YEARS THE AVERAGE ANNUAL CONSUMPTION OF CHICKEN MEAT PER PERSON HAS LEAPT FROM 4.9 KILOGRAMS TO 45.5 KILOGRAMS KEITH PLATT TALKS TO INGHAMS ENTERPRISES’ SOMERVILLE PLANT BOSS ALAN WILSON AND FINDS THAT OUR APPETITE FOR CHICKEN IS STILL INCREASING ABOUT FOUR PER CENT A YEAR. That’s a lot of chicken, about 600 million birds. Serving suggestions and ways of cooking chicken meat also has no bounds, with new ways being introduced all the time, often on celebrity chef and reality cooking shows. Facts about chickens and the $350 million “contribution” to the local economy flowing from the “largest private employer on the Mornington Peninsula” come easily to Alan Wilson. Inghams factory in Grant Rd, Somerville, “processes” 500,000 chickens a week; 25 million a year. The factory has risen to new production heights from a disastrous fire. And, like the fabled phoenix, has been renewed since being turned to ashes on 11 January, 2010. Inghams spent $120 million rebuilding the plant which was up and running again by the following November. Inghams, which dates back to 1918 when Walter Ingham bought six hens, was run from the 1950s by sons Jack and Bob until bought by TPG for $870 million in June 2013. The investment group established a property trust and sold off the land and buildings, primarily to super funds. The business – 8000 employees in Australia and New Zealand - operates under the Ingham name, with plants being rented back and operated by the parent company. “They got about half a billion back to reinvest and expand. There will be more sheds as we recognise areas suitable for chicken farms, such as the La Trobe Valley – degraded land is useful to us,” Wilson says. The Ingham brothers became Australia’s largest and most successful racehorse owners with the bloodstock business being sold in 2008 to Darley, owned by the ruler of Dubai, Sheikh Mohammed bin Rashid Al Maktoum. An engineer and MBA, Wilson initially worked for Inghams as a contractor, becoming a company employee in 1995.

The faces and gestures of comedian activist Rod Quantock. PHOTOS: KEITH PLATT

Inghams Enterprises’ Somerville plant bass Alan Wilson at his stand-up desk. Abo

Before moving to Mornington to take over managing the Somerville processing works he oversaw the building of sheds, hatcheries and processing plants as well as stud farms for racehorses in the Hunter Valley (Woodlands Stud) and the Crown Lodge stables at Sydney’s Warwick Farm racecourse and Carbine Lodge at Flemington, Melbourne. A former soccer player, Wilson rides a bike, tries to walk 12 kilometres a day, plays golf and sees a personal trainer at least twice a week to retain flexibility. Having grown up near the Barossa Valley, the peninsula suits his lifestyle. “I like cheese and wine.”

12 | BusinessTimes| Frankston / Mornington Peninsula / Dandenong | September 2014

or chicken

. Above right: The rebuilt Somerville factory; and chickens on the processing line. Photos: Keith Platt.

The Somerville plant has room to expand, but the number of growers is being limited by the NIMBY (not in my backyard) effect, with urban planning rules virtually ruling out any more on the peninsula.

s s

It is hard to avoid statistics in the hour spent with Wilson. As with most production lines Inghams is all about inputs and outputs, but there is something about the sheer volumes involved that makes numbers so prominent. These same volumes stir emotions and Wilson says the company sometimes receives â&#x20AC;&#x153;hate mailâ&#x20AC;? containing accusations of animal cruelty. A vertically integrated company, Inghams has about 600 employees at Somerville (about 300 of them were there before the fire) but through its growersâ&#x20AC;&#x2122; contract system is financially backing 14 many more families on the peninsula and beyond, most

September 2014 | Frankston / Mornington Peninsula / Dandenong BusinessTimes | 13

cover story: ALAN WILSON, INGHAMS ENTERPRISES

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Growing taste for chicken notably lately on the former swamplands surrounding Koo Wee Rupp. Land on the peninsula is becoming more expensive and planning controls mean that chicken farms, or sheds, must be isolated from housing areas. Wilson says contractors grow Inghamsupplied day-old chicks in sheds on their own land. “We supply chickens, feed and veterinary support,” he says. “There are six hatchings a year, with grown chickens being collected every 50 days.” This can vary, with “1.3 kilogram dressed” chickens destined for fast food outlet KFC being grown in 35 days. Chickens are grown to two target sizes – 1.3kg and 2.4kg (Woolworths) – and grow about 100 grams a day. They provide a good return on input in that chickens put on about half the weight of feed they receive. “Two kilos of food equals one kilo of a live chicken, which is three quarters of a kilo of edible chicken,” Wilson says. Even though it is dealing with a live product, the chicken industry has evolved so that these inputs and outputs can be finely measured and costed. New genetic stock is brought from Europe every six months to Inghams eight grandparent breeder farms where the ratio is one rooster to 10 hens. Eggs are collected daily and sent to hatcheries at Mornington and Pakenham. The scientists aim to increase egg production and growth of breast meat by 3% a year. The breast of a “modern” chicken is 25% of its weight. It was once 10% of the birds’ average weight. Hatched after three weeks, 30,000 or more chicks are then delivered to each farm. Wilson says the $150,000 a year minimum paid to 45 contract farmers includes wages, power and water. “Commercially, they make good money.” Twenty-three of the peninsula’s chicken farms supplying Ingham are classed as free range.

The Somerville plant has room to expand, but the number of growers is being limited by the NIMBY (not in my backyard) effect, with urban planning rules virtually ruling out any more on the peninsula. Wilson says new chicken farms should be running about 300,000 birds and need to be on about 60 hectares of land, “even though only about five hectares are needed for the sheds”. “But of course they can run other agricultural pursuits on the land. Most prefer cows because they don’t have crossover diseases.” Migratory birds attracted to the internationally recognised and protected wetlands at Western Port are a potential problem for the peninsula’s chicken farmers. “It’s intensive farming and disease spreads quickly,” Wilson says. Sentinel chickens – pathogenically clean – are kept with breeding flocks and regularly tested for any infections. If diseases are found it can lead to culling of entire flocks of the captive birds. Most of Inghams output is destined for Australian markets because of “relatively high production costs”, although it will be again providing “chicken paws” to the Asian market by Christmas. The latest “value-enhanced product” being produced at Somerville is a marinated chicken pack designed for

14 | BusinessTimes Frankston / Mornington Peninsula / Dandenong | September 2014

Woolworths by celebrity British chef Jamie Oliver. “It was released two months ago and is going very well, it’s exceeded all expectations,” Wilson says. He says the Somerville plant has UNESCO “recognition for water stewardship” through its efforts to protect the catchment (which eventually flows into Western Port) and its recycling polices: 70 per cent of water is recycled and 30 per cent going to the South-East Water sewerage plant in Craigie Rd, Mt Martha. He says Inghams is “by far” the largest single provider to that plant. The company is one year into a five-year plan with South-East Water and has the ability to store up to three days of discharge on-site at Somerville “but that hasn’t happened yet”. The same goes for his efforts to cut waste going to landfill. Twenty tonnes being taken to the tip each week might sound like a lot, but seems insignificant when compared to the 1000 tonnes of chicken meat produced in the same time. Inghams spent $100,000 investigating building an on-site cogeneration power plant using methane from waste, but found that it could produce just 5% of required power at a cost of $2 million. “Power is just too cheap,” Wilson says. “I’d still like to get that 20 tonne down to nothing.”

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September | Frankston / Mornington Peninsula / Dandenong BusinessTimes | 15 Accounting team members - Jason Beare, Dereen2014 Wallace, Amy Bignell and Irena Lioudvigova.

Three tips to show your business’s personality People rarely want to engage with a Jessica Humphreys* business or a brand via social media. Social media consultant They want to engage and connect with people behind the business. Social media is the perfect platform for you to create a personality and share your business identity. People buy from businesses they trust and people trust the people and businesses they know, so give your followers a chance to get to know you. Here are three quick steps you can use to build your business personality: 1. Behind the scenes: Often we want to showcase the fun aspects of our companies. Event posts are great, but allow your audience a backstage pass by sharing pre-event photos and stories. Not only will your audience feel like they have an insight into ‘behind the scenes,’ but they will also learn more about the processes and effort behind your work. 2. Showcase your people: Share photos, stories and snippets of yourself and your staff. Allow people to get to know the people within your business. Share their interesting hobbies and what unique qualities they bring to the workplace. 3. Inject a little humour: While you may want to project a corporate image, social media is a place where you can have a little fun. Share a joke or a funny story once in awhile and ask people to share their own funny experiences.

Jesicca’s company Social Concepts is offering BusinessTimes readers the opportunity to have a 90-minute social media consult for only $160 until September 30. To redeem just email Jessica@ socialconceptsconsulting.com or phone 0407082 493. *Jessica Humphreys operates Social Concepts, a social media consulting business. Send questions to Jessica@socialconceptsconsulting.com

TEN ways to cut electricity costs Small businesses can avoid being shocked by high power bills, according to ERM Business Energy sales manager Peter Bennett. “While prices may continue to climb, what many small businesses don’t know is that it’s relatively easy to see a reduction in their bill simply by reducing consumption,” he said. “Small businesses are charged based on the amount of electricity they use, so implementing simple strategies to reduce consumption can result in savings of as much as 10 to 20% on electricity bills.” Mr Bennett said a typical ERM small business customer spends less than $30,000 a year on electricity. He said customers can track their own usage and monitor their consumption savings through load profile charts that are always available through an online customer portal.

PHONE (03) 9781 6800 I EMAIL info@bnrpartners.com.au Level 1, 327-333 Police Road, Mulgrave Vic 3170

Are you getting what you need from your accountant? Want timely and proactive advice? We hear you! We have teams specialised in Franchise, Business Advisory and Estates & Trusts that will give you the help that you need, now. Our extensive industry networks ensure that all your business needs will be met promptly. Call us for an obligation free meeting today. Ph: 9781 6800 Ian Raspin, Director of BNR Partners’ dedicated Estates and Trusts division and brings over 20 years of public practice experience to the firm. Ian’s career began in business advisory services and now focuses on the specialized area of Trusts and Deceased Estates. This division works with both Trustee Companies and Legal Practices across Australia.

16 | BusinessTimes Frankston / Mornington Peninsula / Dandenong | September 2014

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Jason Bertalli, Director of BNR Partners and leads the firms’ Business Service and Franchise divisions. Having over 15 years experience as Business Advisor, Jason and his experienced team work closely with businesses across Victoria bringing practical solutions and an easily understood approach to enhance the development and growth of his clients’ businesses.

CONTRIBUTOrs

Mr Bennett’s top tips to save on electricity bills: 1. Turn computer monitors off every night - monitors use more power than the computer itself. 2. Regularly service air-conditioning and heating equipment. 3. Keep the air-conditioning set at 18 degrees in winter and 25 in summer. 4. Install a time clock on air-conditioning and heating so it turns on and off automatically. 5. Make sure the staffroom fridge is not over full and is cleared at least once a fortnight. 6. Use available natural light instead of artificial light where possible. 7. Install motion sensors for lighting in unoccupied areas like the toilets, copy room and storerooms. 8. Check your electricity bill. In some geographic areas, peak, off peak and shoulder rates will be shown and it may be possible to shift some energy usage from peak times to cheaper off peak times. 9. Monitor usage patterns to see how much electricity is used after closing time to provide a baseline to measure improvements. 10. Buy energy efficient products, even though they may be expensive they will last beyond their payback period. For more information call ERM Business Energy on 134 ERM (134 376) or visit ermbusinessenergy.com.au

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Some of our experts Professional solutions for the South East

chisholm offers courses online

explorer makes tourism inroads s s

their visiting friends and relatives; visitors to the peninsula 5 from the Melbourne metropolitan area; interstate and international visitors to Melbourne; and groups from schools and community service clubs. Tourism packages will link tourism “experiences”, and may be for a single day visit using the 24-hour Peninsula Explorer ticket or using a discounted three-day ticket. The multiple day ticket may be packaged with the ferry, two nights accommodation, a dolphin swim, riding horses at Gunnamatta, sampling wines at the Cups Estate and bathing at Peninsula Hot Springs. Discounted 10-ticket passes and annual passes will also be available. Grayline and Bunyip Tours will provide daily transfers from the Melbourne CBD to the Peninsula Explorer. Charles Davidson of Peninsula Hot Springs flagged the start of the Peninsula Explorer in the December 2013/14 edition of BusinessTimes (“A life in hot water can be a good thing”). He said he first floated the idea in 2007 thinking its not-for-profit base would be a “no brainer” to attract support from Mornington Peninsula Shire. Now, seven years later, the $300,000 buses are about to hit the road with commercial backing.

Pitcher Partners, a leading Melbourne accounting, audit and advisory firm, has been helping businesses like yours for more than 20 years. And now, we have 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

(03) 8610 5000

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Chisholm began offering online courses from 1 August. Students will be able to access nationally accredited courses across Australia, with support available seven days a week. Staff will be accessible to online students studying certificates, diplomas and graduate certificates. Enrolments will be accepted year-round, with graduates earning a recognised Chisholm qualification. Courses on offer include business, community services, building and construction, and workplace safety with more courses to be considered. Students can enrol now for classes beginning 6 October, 2014. For details or to enrol visit www.chisholmonline.edu.au

September 2014 | Frankston / Mornington Peninsula / Dandenong BusinessTimes | 17

health

All you need to know about ice and its applications So I was down a remote end of the beach the other weekend when a friend had a nasty mishap in the gnarly shore break and managed to seriously damage a knee. Turns out the injury included some heavy-duty ligament and cartilage tears. It was a long hobble back to civilisation and the daunting chain of casualty department, GP, physiotherapist and, eventually, surgeon. There’s not a whole lot a herbalist can offer in such circumstances. Sometimes you really need Western medicine, its technology and its skill with a scalpel and stitches. I was able to help on one point though: to counsel against the standard advice known to everyone from first-aiders to health professionals the world over as RICE (rest, ice, compression, elevation) – particularly the ice bit. Why? As I’ve written before, icing an injury is likely to make it worse, to compromise healing and prolong the recovery – and potentially even to create a residual problem. There is barely a skerrick of evidence for icing injuries. The practice relies on nevertested assumptions. And anyway, it defies common sense. The first tenet of any health profession no matter what modality is: first, do no harm. Unless your priority is to reduce pain – the only demonstrated benefit of icing (albeit a short-term one) – the idea that you should reduce swelling or inflammation around an injury is just bunkum. It’s bulldust. When my daughter was studying physiotherapy a few years back, she challenged a lecturer giving the RICE protocols for the science on icing. She was referred to the “27 references” listed on the lecture notes. That night she went through them one by one – and found plenty that referred to the effect on pain, but not one study that demonstrated a healing benefit. And yet, unbelievably icing remains standard practice in professional sports medicine. Watch an AFL game for a few minutes and you’re bound to see a sidelined player

Michael Ellis*

Chinese Herbalist

with a bag of ice strapped to his strained muscle or corkie. What for? Visit the changerooms afterwards and players are enduring the torture of “ice baths”. What the hell for? Maybe icing after injury is to limit bleeding into the surrounding tissue that might cause a problem in itself. There must be sound evidence for this, right? Well actually no, not that I can find (and I’ve been on the lookout for a long time). Looks more like icing temporarily increases the bleeding. Fortunately, an increasing number of health professionals are wising up to this, as a number of meta-studies (that is, analyses of multiple trials) increasingly find the assumptions underlying the application of ice to be false. This from Nick DiNubile, editor in chief of The Physician and Sports Medicine Journal: “Seriously, do you honestly believe

18 | BusinessTimes Frankston / Mornington Peninsula / Dandenong | September 2014

that your body’s natural inflammatory response is a mistake?” How could it be? Swelling, pain and inflammation are integral aspects of our body’s inbuilt, evolution-tested, healthy self-repair mechanism. The instant we hurt ourselves the mechanism clicks in, flooding the injured area with blood and fluid to generate extra warmth and provide the nutrients necessary to accelerate tissue repair. The pain signals tells our brain to minimise movement to prevent further injury while the swelling helps both to achieve this and to accelerate the repair job. Why would we want to put a freeze on that process? (Most people do not ice thoroughly enough to reduce inflammation anyway. The body’s immediate response to messages from the nervous system that an area is cold is to send more resources there – to try to heat it up. So the initial response to ice is an increase in inflammation. If you ice for long enough – at least 20 minutes – there will indeed be a temporary reduction, but as soon as circulation is restored – bang! – the body resumes its job of tissue repair.) After reviewing the available science in the USA, a National Athletics Trainers Association study concluded that ice was ineffective at speeding up the healing process for sprained ankles. “The inflammation process assists in healing. We don’t want to interrupt that,” said the lead author. It also found that compression had no impact on recovery. The study concluded that (after the acute period) exercise helped to re-establish blood flow and flexibility to the injured ankle, both of which were proven to speed up recovery (Journal of Athletic Training 2013). So icing damaged tissue does not prevent inflammation it merely delays it (and a damn good thing too – if it prevented it, the tissue would never heal.) It does not reduce swelling; but increases it. And it doesn’t help healing, but prolongs it. Unless in dire need of pain relief, why on earth would you do it? My friend’s had some surgery and she’s on the road to recovery – using plenty of heat therapy and movement. *Michael Ellis is a registered Chinese herbalist in Mt Eliza. Visit www.mtelizaherbal.com

MARKETS

Big questions hovering Looking back some years from now an investor could say that by August 2014, much of the healing from the 2008 crash had occurred. The US markets repeatedly hit new highs, the top 30 US corporations held cash of nearly $2 trillion and the broader S&P 200 was hovering at record levels buoyed by the FOMC’s ultra accommodation of zero interest rates extending out to some indefinite future. In Australia the results season was notable for moderate sales increases, but swelling or record profits. CBA powered on as bad debt fell and costs were removed. The two resource gargantuans enjoyed an Indian summer as rising iron ore volumes and drastic cost cutting swelled their coffers. Iron ore prices hovered just above the $100 a ton level, but the high grade Pilbara ore remained in demand as the Chinese steel industry favoured it over low grade domestic. CSL as usual proved solid, guided to a 15% profit for 2015 and stepped up its huge buy-back program. It could see no better investment in the world than itself. David Thodey’s steady hand at Telstra showed. A “last century” copper wire concern lifted dividend, reduced debt and had loads of cash for a buy-back. This century survivors of the internet bubble were upbeat. REA Group had seen off most of its opposition and posted a crushing 36% lift in net profit. After a sell-off it recovered quickly to trade at a heady 41 times earnings. Seek’s result was similar, up 27%, with the same half-hearted sell-off. Expansion plans look very do-able as the job and course search site spreads even to Bengladesh. Dominoes also made full use of the net and reported a strong lift as its Japanese outlets proved that others like

Richard Campbell* Stock Analyst

bizarre pizza toppings, too. At a more mundane level many of the property trusts and management vehicles which had been unravelled over 2008-11 had refurbished their balance sheets with profits lifting in a band of 8-10% and in some cases more. QBE disappointed yet again, but at least bit the bullet and said it would spin out its mortgage insurance business while other titans of a previous era like Pacific Brands, Boral and CSR struggled on attempting to adapt to a more complex world where bricks and tiles are either used less or cost more to make. Pacific Brands struggled on, a shadow of a past glory. The suppliers to the mining boom – engineers, builders and contact miners – were working in a lower gear but in some cases seeing light. McMahon with its battered history reported a profit. The weaker dollar of the post-boom period gave the smaller exporters a fillip. Wesfarmers rolled in a 20% lift in earnings but smaller retailers inhabited a different economic neighbourhood, not shabby, more depressed genteel. Australian wages were moribund and while the well-to-do were

about to receive improved dividends from the banks and BHP, the economic landscape was akin to the US where the interest rate dial was still set to emergency levels and the glistening corporate precinct was awash with cash. Could it get it any better? For the big brands and the new capital-light businesses this all a breeze. Sales edged up, but for others the answer depended partly on two big “off-stage” questions. The first was when the Federal Reserve would “lift from zero”. Never in history had a monetary experiment been conducted on such scale with such apparent success, but with such uncertain consequences. The second was what would happen in China? According to S&P its corporate debt had surged 60% over 2010-14 to US$14.2 trillion. This was $1.1 trillion more than all US corporate debt. Since nearly half of China’s 80 or so steel companies (90% public owned) were losing money in the first half of 2014, it was a fair to ask whether we were missing something. Why were China’s property prices falling? Was it true that over 20% of China’s housing is empty? At BHP – which surely had some insight into the workings of its major customer – there was no panic but it used this moment to divest its weaker assets. UK investors seemed to see the issue and sold. Here investors seemed unconcerned. Overall the results season was strong and management looked classy. Portfolios were plump again and yet off-stage there were large questions hovering. It took months before we knew the answers. * Richard Campbell is Executive Director of Peninsula Capital Management, Tel. 9642 0545. rcampbell@peninsulacapitalmanagement.com.au

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September 2014| Frankston / Mornington Peninsula / Dandenong BusinessTimes | 19

medal winning wine

Handpicked for a trophy

Gary Baldwin’s win with his first Mornington Peninsula vintage should not have been a surprise considering his experience and ability.

While this year’s crop yielded nowhere near the quantity of last year, Baldwin says the quality of the wine will not suffer. The prize-winning 2013 pinot was made under Baldwin’s supervision at Montalto Vineyard’s winery in Tubbarubba Rd, Merricks. Today some new vats stand empty in Capella’s winery at Bittern because of a shortage of fruit. Other winemakers also suffered lower yields and Handpicked has had trouble buying surplus stock. Baldwin says 2014 has been a “terrible year for yield, everyone is whingeing”, with crops down by about 60 per cent. Anyone going past the 16 hectares of vineyard on Frankston-Flinders Rd would not guess that the winery – vineyards and palatial house surrounding an ornamental lake (complete with island) – is actually part of a much larger enterprise. The Capella vineyard, through Handpicked, is owned by DMG Fine Wines, which also sources grapes and makes wines

20 | BusinessTimes Frankston / Mornington Peninsula / Dandenong |September 2014

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Winemaker Gary Baldwin won a trophy and a gold medal for the first vintage he produced at Handpicked Wines’ Capella Vineyard at Bittern. The grapes used for the 2013 pinot noir were already on the vine when Baldwin’s employer took possession of the vineyard in January of that year, although they were not picked until they had ripened following some judicious thinning out. Of course it was not luck that saw Baldwin make such an initial big splash among the locals at this year’s International Cool Climate Wine Show at Red Hill, picking up the trophy and gold medal for the Best Mornington Peninsula Red His reputation as a maker of fine wines is the result of decades in the job, so the win would be no surprise to industry insiders. He has been a consulting winemaker to many of Australia’s leading small medium sized wineries from 1988 until last year when he joined Handpicked.

in renowned wine regions in Italy, France, Spain, Chile and New Zealand. Overall, Baldwin estimates DMG processes “several thousand” tonnes of grapes a year, with its own vineyards in Victoria and the Barossa Valley contributing less than 300 tonnes. (Bittern, 30-40; Barossa, 30; and Yarra Valley, 200). However DMG – a family-owned company run by William Dong with headquarters in Sydney – calls Australia home when it comes to its main source of grapes for its super premium wines: the Mornington Peninsula, Yarra Valley, the Barossa, Margaret River, Clare Valley and Tasmania. Baldwin says Handpicked is only associated with recognised “great regions” because it is “not here to sell a new story”. He sees the peninsula vineyard – the latest company acquisition – as “the cream of the crop”, but doubts that consumption of its wines will be widely spread: “Not everyone is spending $50 for a pinot every night.” Especially not in China, the company’s biggest market. Although Baldwin was able to produce a first-up award-winning wine from the fruit at Capella, finding the vineyard itself was not so straightforward. Dong had expressed an interest in branching out onto the peninsula and set Baldwin the task of finding a suitable property. A short list of four vineyards had been compiled for inspection when Baldwin’s wife, Judy, found Capella on the internet, but listed only as a residential property. “William [Dong] wanted a place that looked good so we took a Sunday drive down here, peered over the wall and said ‘wow’,” Baldwin says. The house fitted the bill as “a special place” for Dong, his family and friends to stay, while the already mature vines were carrying a satisfying amount of pinot and chardonnay grapes. The property’s former owners had built a winery but sold their grapes to a winemaker rather than produce their own wine. Under Baldwin’s direction another three hectares of vines are about to be added to Capella, seen as DMG’s flagship vineyard. Its 33ha Yarra Valley is the largest vineyard, followed by the one at Bittern and then 18ha in the Barossa. While Capella has a large winery there are no plans for a cellar door. “It’s not even on the horizon,” Baldwin says. “But I would 23 never say never.”

women get together

Jo Schutt says one importanr lesson she has learnt “the hard way” about setting up a website: hire a professional. That was a few years ago and Schutt now runs Bloom Networking, which holds regular meetings at Mornington where women can get advice and share business experiences. Now in their fourth year, the meetings have proved so popular that Schutt is about to launch monthly network meetings at Frankston, Hastings and Rosebud, complete with a babysitter. Bloom isn’t industry exclusive and has an educational component with workshops and guest speakers. About 30 people attend each meeting and inquiries from women throughout the peninsula and Frankston have convinced Schutt that it is time to branch out. A trained naturopath, Schutt is also the

power behind the annual Peninsula Health and Wellbeing Expo, being held for the fourth time at Mornington Racecourse on Sunday, 26 October. About 30 per cent of the women involved with Bloom Networking run home-based businesses and about 80 per cent of members have been there since the beginning. While group members are all women, guest speakers often include men, such as On the Button life coach Ben Carvosso and marketing expert Allan Dibb. Bloom has a website and is on Facebook. “We also have Facebook-only members and members can ask questions and get answers between meetings,” Schutt says. Members include copywriters, authors, web developers, trades, cafe proprietors, retailers and a cleaning business. “I love the diversity,” Schutt says.

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“Before starting Bloom I had been to other networking groups but found it difficult for me and my business to fit in. So I made Bloom family and mum oriented. “It can be very intimidating to go into a room full of strangers, so I made Bloom warm and welcoming. Bloom people make newcomers feel good, but it’s also a source for clients and referrals, that’s a big part. “Quite a few members do testimonials for each other.” Schutt plans to have three levels of membership, each one named after a flower. Level three, the top, is called Lily, and will offer members “mastermind” sessions (maximum six people), business “invasions”, three-hourly monthly meeting focussed on each member’s business. “I’ve been trialing this method, doing it myself and it’s amazing to join in as opposed to facilitating,” Schutt says. The second level, Daisy, equates to the existing benefits of being a member of Bloom: monthly meetings, Facebook and website listings. Level one, Jasmine, is for women who want to be involved but cannot always attend meetings. Schutt says she chose Bloom as a business name because it represents “something that grows”. We brainstormed that for about three months,” she adds with a laugh. And the DIY website experience that taught Schutt a lesson?: “The site got hacked with messages being left in Arabic – something to do with the host and lack of security. Apparently you can be blackmailed to get them [the hackers] to leave you along. That was enough for me, I let go of the site.” A handy hint for the unwary and all part of the Bloom experience available at www. bloomnetworking.com.au

0408 598 767 tony@tpgd.com.au www.tpgd.com.au

September 2014 | Frankston / Mornington Peninsula / Dandenong BusinessTimes | 21

MANAGING

Can you plan your career Career planning discussions start during high school years as young people struggle with the question about what they want to do with their lives. This is an impossible struggle as no one can conceive how seemingly minor events will change their lives. When I first started shift work as a metallurgist in a small tin mine on the west coast of Tasmania, I could never have conceived that 32 years and 20 jobs later, I would be sitting in a corner office on Park Av in Manhattan as vice president of the world’s largest metals company. Life is full of twists and turns and chaos, so how can you prepare yourself to manage your career? Today, there are some generally accepted models for career planning that can be very helpful in starting the thinking process about your career. Generally, these models have four steps that include knowing yourself and your life priorities, exploring alternatives, deciding on a direction and then acting to implement this plan. The very first step in determining your life priorities is the most important, and it can be the most difficult. Aside from thinking about your personal values and strengths, it really forces you to think about what sort of job design and people interactions suit you the most. While working at MIT’s Sloan School of Management in the 1970s, Professor Edgar Schein developed the concept of career anchors, where the anchors represented an amalgam of personal values, talents, and preferences. These anchors shape the decisions that you will make about what is most important to you, in both your career and life. This model has evolved now to define nine career anchor themes including technical or general management competence, autonomy, security, creativity and lifestyle. When I reflect on my career, I lacked the specific technical competence for any of my last 14 jobs so it is very obvious that my career anchors were creativity and general management competence. Luckily, my family supported me with the frequent relocations necessary to take on each new career opportunity. The key outcomes of analysing your own career

Hamish Petrie*

Business Consultant

anchor is that you are most likely to be happy and satisfied when you can work in a job which is aligned with your personal anchor. If you are on the flip side of this process, where you are making decisions about candidates for a job, then it is well worth exploring each candidate’s career anchors. Technical competence is very important in some jobs, like brain surgery, but for many jobs it is not the most important factor, so taking a risk with a candidate can be very rewarding. Luckily, I had many bosses who were prepared to take a risk with me although I lacked specific knowledge about their job.

experience would suggest that this is too long. Too many things can change your situation in even two years that a three-year plan seems more appropriate in our rapidly changing world. In making this sort of plan, most people identify that they want to do their boss’s job, as they know that they can do it better than the current boss. While this may be true, it can be restrictive as people can lock onto this and lock off on other possibilities. This “lock on: lock off” thinking can prevent a person from thinking about lateral jobs that may ultimately prepare them for bigger future jobs. I always suggest that a medium term career plan should exclude their immediate boss’s role, as this stimulates broader thinking. Getting some breadth of experience during the first half of your career is always wise and it doesn’t matter in the long term if a particular job is not your ideal one at the time, as long as you keep learning about yourself. Companies and jobs are always evolving and changing so it is important to learn how to adapt to change and to help drive change in a positive direction for you and your company.

Getting some breadth of experience during the first half of your career is always wise and it doesn’t matter in the long term if a particular job is not your ideal one at the time, as long as you keep learning about yourself. Time is a critical factor in any career planning process. Most futurists agree that a large proportion of jobs even 10 years out have not been invented yet. To try to conceive the sort of job that you might in the latter half of a 30 plus year career is impossible. Your personal situation and your career anchor will usually change often through your career. For example, major life changes can greatly alter your priorities. Some consultants recommend breaking your career into five year terms, however, my

22 | BusinessTimes Frankston / Mornington Peninsula / Dandenong | September 2014

There is an old adage that “tomorrow’s power comes to those that solve today’s problems”. Demonstrating that you can creatively solve problems and stimulate others to help can be a great adjunct to your career. The bottom line is that it is impossible to develop a realistic long-term career plan. You can develop a short to medium plan and this can be very helpful as long as your include all of the opportunities for broadening your experience. When considering how to develop your career,

*Hamish Petrie had a 37-year corporate career including 25 with Alcoa. 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 2014

businesstimes

HANDPICKED FOR A TROPHY 20 “I supervise all the company’s winemaking,” Gary Baldwin, right, says. “Including the 88 – lucky numbers in China – the entry level wine which retails for $10 to $12. It’s sold a little in Australia but mainly in China.” Baldwin’s work involves marketing trips to China where his products are sold in about a dozen cities. The most recent trip saw him attending seven dinners in seven nights. “I’ve been to China about 20 times since 1991,” he says. “I suppose I should learn to speak Chinese.” An indication of DMG’s marketing base is shown by it having five sales people in Australia and 30 in China. Baldwin is director and principal of the industry-leading Wine Network Consulting, which had been operating for 25 years when wine writer Jeremy Oliver introduced him to Dong. Oliver’s book Enjoy wine with Jeremy was published in Mandarin in 2008, making him the first western wine commentator to publish a book about

s s

it is much more important to focus on the company rather than the job. If you can join a company that is right for you, then they will help you grow, become active in a dialogue about your future and help you be happy and rewarded in whatever job comes along. Action Planning Questions: 1. Have you investigated your own career anchor or taken one of the self-assessment tests available on the internet? 2. Have you developed a three-year plan, excluding your current boss’s job? 3. When considering candidates for a job, do you give try to identify their career anchors to determine the best long term fit to your needs? 4. When considering a job, do you focus much more on the company rather than the specific job?

wine for a Chinese audience. Baldwin says overseas sales of Australian wines are being hit hard by the dollar’s high exchange rate: “If it was 80 cents things would be a helluva lot better. Europe and the Unites States are paying a premium for our wines. “While Australia has led the way in good, solid winemaking, the Chileans can land a case here for $24. We can’t compete. “We know what sells in China – shiraz and cabernet sauvignon – and that tends to follow the Western world, in my view. But merlot [sales and popularity] will improve. Watch out in the next five years.”

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September 2014 | Frankston / Mornington Peninsula / Dandenong BusinessTimes | 23

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