60 5 # 1 E 20 U S G IS RIN P S
BUSINESS & NETWORKING: Frankston | Mornington Peninsula | Dandenong
September 2015 | FREE
leading the way in SALES
ASHLEIGH HOULT DELIVERS HIGH QUALITY LEADS TO HER CLIENTS
COMPLAINTS welcome them, share them, treat them like little nuggets of gold
BIG SPENDERS
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WHEN IT COMES TO THE INTERNET, MEN ARE THE ONES ON A SHOPPING SPREE
who/what/where
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ISSUE 60 / SEPTEMBER 2015
FRANKSTON / MORNINGTON PENINSULA / DANDENONG
TONY MURRELL KEITH PLATT MARG HARRISON DAVID HILET MELANIE LARKE SIMON BROWN Design MARLON PLATT Finance ANITA HILET
Publisher / Director Editorial Director Sales Director Managing Director Material production / Prepress
bUSINeSS
features
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Make sure every business knows your business. For advertising, contact Marg Harrison on 0414 773 153 or marg@businesstimes.net.au 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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ashleigh QualitY hoult deliVe rs high leads to her client s
municipal muscle: Seven councils in Melbourne’s south east have joinerd forces to lobby the state government. AN ETHICAL APPROACH:
Eastern medicine and philosophy merge for a healthy outcome.
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& NetWOrK ING: Franksto n | Morningt on Peninsula
welcome them like them, share little nugge them, treat ts of gold
BIG SPE
NDERS
when it comes to are the ones on the internet, men a shoPP ing sPree
Columns Social Media: Jessica Humphreys Health: Mike Ellis Markets: Richard Campbell Networking: Ivan Misner 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
COVER: Ashleigh Hoult and her team are constantly on the LEADIN ThE wAG phone, not selling, but IN y SALES finding leads. P.12 Cover photo: Keith Platt COMPLAINTS
0 #6 15 E 20 SU G IS IN R SP
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FUTURE TIMES
Economics over physics It’s been a good trip, and everyone involved with the production of BusinessTimes would like to thank all readers for coming along for the ride. We hope you’ve enjoyed it so far, all 60 issues worth. Yes, this edition is our 60th and, like its predecessors, carries news, views and interviews. Over the past five years we’ve had a close look at people in business, from those who’ve just started out to members of family dynasties. There’ve been property people, manufacturers, trainers, innovators, a comic and even a man who sometimes goes around with a snake wrapped around his head. Our columnists have charted the markets, managing and health (from the point of view of a practitioner of Chinese medicine). These forecasters and analysers have provided coffee talk, even food for thought.
But nothing stays the same and this issue will see BusinessTimes take a bow from the world of print. Our online presence remains, but the monthly colour magazine delivered free to your office is no more. The world of business is shrinking and expanding at the same time. The core of this combined expansion-contraction is called the internet. Sit at your computer or walk along the street with a hand-held device and you can access the world. You’ve expanded and shrunk at the same time. But the future of BusinessTimes depends on economics, not physics. In the world of publishing, printing and distributing free magazines such as BusinessTimes reaches a point where decisions have to be made. The physical magazine is expensive to produce and distribute. Costs tumble if sent solely
through the internet. There’s no doubt many readers prefer to read the physical version of BusinessTimes. The mag lies on a table or desk, it’s easy to browse, put down and pick up. But the whole enterprise hinges on revenue, which has just one source: paid advertising. And this is where the dilemma arises, can we expect advertisers to pay more for space to keep up with increasing production costs? If BusinessTimes goes solely online, advertising costs can be reduced, but there’s no physical magazine left lying around in reception areas or corporate board rooms. Will this satisfy advertisers? We don’t know. Whatever the future, BusinessTimes will still have plenty to say and we hope you stay tuned. To receive online bulletins email Margaret Harrison at marg@ businesstimes.net.au or call 0414 773 153. Meanwhile, thanks for joining us on our five-year, 60-edition odyssey. Keith Platt, editorial director
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MUNICIPAL MUSCLE
Seven councils have a plan Unity often means strength, and seven municipalities – including Greater Dandenong, Mornington Peninsula and Frankston – are hoping the same applies to political power. Power enough to first get the attention of the state government and then to get the government heed their call to action. Members of the newly-formed South East Melbourne Group of Councils (SEM) admitED the diversity of their respective municipalites but say they have a common interest in advocating “for the changes required to sustain growth in the future”. Also gathered under the SEM banner are the shires of Bass Coast and Cardinia and the cities of Casey and Kingston. They have a South East Melbourne Regional Plan which “articulates how our seven SEM councils will work together to address and respond to issues impacting
the south east Melbourne region over the next four years and beyond”. Big-ticket items include a call for an “immediate start” on planning for a south-eastern airport and developing the Port of Hastings. This last item is at odds with the state government’s pre-election preference for the state’s second container port to be built in Port Phillip, at “Bay West” north of Geelong. Since then the state has tied a 50-year lease for the Port of Melbourne to a guarantee of no competition. The government has also said Infrastructure Victoria will evaluate the need, and siting, of the state’s next container port while designating Hastings as a “bulk” port (gas, oil, fuels and, possibly, brown coal). The plan also calls for a “regional boating facility” at Frankston, despite failED efforts over the past two decades to build a marina at the foot of Olivers Hill.
The plan being pushed by SEM is aimed at increasing employment and investment in a variety of fields including education and tourism. It wants the NBN to be rolled out as soon as possible along with improvements in public transport and bicycle networks. The plan also goes beyond economics, with recommendations on how to control anti-social behaviour and making housing more affordable . The SEM councils will rotate the chairmanship, with Frankston mayor Cr Sandra Mayer being the inaugural head. She said the seven municipalities will find common ground on which to lobby federal and state governments and the private sector. SEM’s plan “supports a polycentric city approach” and nominates Dandenong, Frankston and Narre Warren-Fountain Gate as “centres for employment” to ease pressure on public transport since “a high proportion of our residents travel long distances to find suitable employment”.
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BUSY BITES
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ACCC WEBSITE TARGETS SCAMS The Australian Competition and Consumer Commission is urging people not to send money or personal details to strangers after $45 million was reported lost to scams already this year and 45,000 complaints made. “Scammers are becoming increasingly sophisticated in their attempts to get your money or personal details, ACCC Acting Chair Delia Rickard said. “Scams succeed because they look like the real thing and catch you off guard when you’re not expecting it.
Copyright made easy Content creators may benefit from a simple method of managing the use of their work worldwide. Australian rights management and collection society the Copyright Agency has partnered with UK outfit The Copyright Hub on its developing global permission technology. Agency chairman Kim Williams has lauded the simplicity of the process. “When a user wants to copy an image or a piece of text, they will be able to simply right-click on it to find out who owns it, whether the owner wants to be paid for its use and if so, how much they want. A simple transaction can follow.” Williams said more countries were expected to follow Australia’s lead, making for a fast and easy process for people who want to do the right thing online. He said creators should receive more payments for high-volume, low-value transactions “Which is good news for the authors, artists and journalists whose incomes have been eroded over the past decade.”
IRD LYB EAR CIALS SPE
“Scams target people of all backgrounds, ages and income levels across Australia. There’s no one group of people who are more likely to become a victim of a scam and all of us may be vulnerable to a scam at some time.” “Our Scamwatch website (launched in July) has all the latest news and tips to help identify and avoid scams. By following the advice on this site, you can help to protect yourself against scammers,” Rickard said. “For the first time, the ACCC has published data on common scams that are causing the most harm in Australia, which will be updated every month on Scamwatch.”
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How to avoid being scammed 1. Be alert to the fact that scams exist. When dealing with uninvited contacts from people or businesses, whether it’s over the phone, by mail, email, in person or on a social networking site, always consider the possibility that the approach may be a scam. Remember, if it looks too good to be true, it probably is. 2. Know whom you’re dealing with. If you’ve only ever met someone online or are unsure of the legitimacy of a business, take some time to do a bit more research. Do a Google image search on photos or search the internet for others who may have had dealings with them. 3. Do not open suspicious texts, pop-up windows or emails. Delete them: If unsure, verify the identity of the contact through an independent source such as a phone book or online search. Don’t use the contact details provided in the message sent to you. 4. Keep your personal details secure. Put a lock on your mailbox and shred your bills and other important documents before throwing them out. Keep your passwords and pin numbers in a safe place. Be careful about how much personal information you share on social media sites. Scammers can use your information and pictures to create a fake identity or to target you with a scam. 5. Keep your mobile devices and computers secure. Always use password protection, don’t share access with others (including remotely), update security software and back up content. Protect your WiFi network with a password and avoid using public computers or WiFi hotspots to access online banking or provide personal information. 6. Choose your passwords carefully. Choose passwords that would be difficult for others to guess and update them regularly. A strong password should include a mix of upper and lower case letters, numbers and symbols. Don’t
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use the same password for every account/profile, and don’t share your passwords with anyone. 7. Beware of any requests for your details or money. Never send money or give credit card details, online account details or copies of personal documents to anyone you don’t know or trust. Don’t agree to transfer money or goods for someone else: money laundering is a criminal offence. Be careful when shopping online. Beware of offers that seem too good to be true, and always use an online shopping service that you know and trust. Key features of the new Scamwatch site: • The ACCC provides information on scams and collects and publishes data on these scam types. • Report a scam: If you think you’ve been scammed or know someone who has, report it to the ACCC using our report a scam page. • Get help: If you’ve been scammed, there are steps you can take straight away to reduce the damage and prevent further loss. Find out what you can do to protect yourself, your business or your loved ones.
far removed from everyday business activity,” Huxley said. “But when you consider reduced productivity, recruiting and retraining new employees, loss of intellectual property, investigations, legal costs, fines, medical costs, increased insurance premiums … it’s easy to see how this is a multibillion dollar issue.” For business, My Work Fair offers real-time, constructive interaction between HR departments, employers and staff. It allows instant, expert assessments on activity, with cost-effective and time saving tools to document legally sound reports across multiple cases. My Work Fair was created by international pilot Margo Atkinson who almost walked away from her dream job as an air crash investigator because of persistent bullying by her manager. Fortunately, she did not become another statistic – one in five Australians decide to quit and walk away because it seems like the best solution. In Atkinson’s case, her resignation was rejected, an investigation launched and her manager ultimately fired.
online help against bullying
survey shows rising confidence
A report in 2013 found that nearly 7% of Australian workers experienced bullying in the previous six months. The cost to the economy of nearly 800,000 workers affected by bullying was estimated at $6 billion. Now there is Australian designed software to help employees and businesses nip workplace bullying in the bud Former Wallaby now workplace health advocate Julian Huxley is part of My Work Fair, the new online platform to foster fair and productive workplaces. “The psychological and health hazards of workplace bullying can seem intangible and
Australian firms reported strong gains in business conditions and rising confidence in June, encouraging talk about a turning point for the resource-rich economy and damping expectations of further interest rate cuts. Business conditions rose to their highest level since last October in defiance of plunging Chinese share prices and uncertainty over Greece’s future in the eurozone, the National Australia Bank said in its monthly survey of firms. The NAB’s business conditions index rose five points to show a net balance of +11. Business confidence rose two points to +10, the strongest reading since September 2013. Trading conditions jumped 8 points to +20.
Digital savvy lacking Australian boards whose members are not digital savvy will struggle to effectively advise management teams facing the challenges of today’s economy. This is the finding of Grant Thornton’s latest report, Corporate governance: the tone from the top. Ensuring that the skills of board members are aligned with the company strategy is integral to future growth, said Andrew Archer, national audit leader of Grant Thornton Australia, an assurance, tax and advisory firm He said the research raises a significant concern about the lack of technology experience among boards today. “A lack of digital savvy in the boardroom is a glaring hole. Digital has disrupted markets and the way we do business but it hasn’t yet changed the composition of boards. “Conducting periodic assessments of board skills and the criteria used for selecting new board members should form part of board effectiveness reviews to ensure boards are poised to tackle the business issues of today and tomorrow. “Further to this, having robust strategic goals in place provides a framework against which companies can assess whether their short term operational plans meet longer term objectives. “The research reveals 94% of businesses operate under a planning cycle of three years or less. Most board members believe this is an appropriate planning horizon, though some stated that they would like to see CEO compensation linked to longer-term performance to avoid operational decisions being driven solely by quarterly reporting. “A good governance culture is critical to a company’s longevity,” Archer said.
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September 2015 | Frankston / Mornington Peninsula / Dandenong | BusinessTimes | 7
NETWORKING gallery
1. Frankston Wine and Food Society held its winter lunch at Taggarts, Frankston International, prepared by head chef Anthony McHale who is in his eighth year at the restaurant. The guest winemaker was Toby Porter, of d’Arenberg, McLaren Vale. From left are Evelyn Hackl with Nicole and Simon Stanton. 2. Ken and Ailene Young with Eric Campbell. 3. Victoria Jeffries, Bruce McClintock and Kirsten Brorsen.
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4. Blue Illusion Mornington held a fashion parade on 6 August as a fundraiser for World Vision. Pictured are Blue Illusion’s store manager Susan Warren and salesperson Andrea Rowlands. 5. Mornington Chamber of Commerce held its networking night at Mornington Golf Club on Tuesday 4 August where the guest speaker was Bruce Billson, Dunkley MHR and Minister for Small Business. Pictured from left are Kim Rowe, chamber marketing manager, Fran Hutcheson, marketing manager of Mornington Central, and chamber vice president Judy Edwards, 6. Peter and Terrie Abildgaard, of Frame Up, Mornington. 7. David and Mary Wade, long time owners of Mornington Drycleaners. 8. Peninsula Business Network held a breakfast at the Mornington Club where Australian of the year Rosie Batty was guest speaker. Pictured from left are Donna Day and Paul Roberts, of Mornington Legal, and Jacqueline Conquest, of Walls Bridges Lawyers, also of Mornington.
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9. BusinessTimes sales director Marg Harrison and Brian Bijdeveldt, of Proper Koach, at Frankston Business Network’s regular meeting Wednesday 19 August at AMF Bowling Frankston. 10. Tori Carson and Karen Random of South East Water. 11. Taso Tounis, of Budget One, and Ray Strongman, Excelbiz Group, at the network’s AMF event.
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12. On Thursday 20 August Frankston Business Network and businesses presented goods, services and money to charities and not-for-profit organisations. A trivia night in July raised $6000. Chamber president Peter Patterson is with Michael Drew, of Le Mans Go Karts, one of the donors. 13. Representatives of businesses which donated towards the various organisations came from PARC, White Cleland, Lisa’s Lacies, Frankston International, Gateway Worship and Performing Arts Centre, Frankston Arts Centre, Core 24, Signature Shoes, Julie Hyne Stylist, Anthony Thomas Menswear, Allison Besanko, Perco Cleaning & Restoration, City of Frankston Bowling Club, Spanish Bar, Quest Frankston on the Bay, Profishional, The Grout Doktor, First Choice Accounting, Stop N Go Brake & Service Centre, The Good Guys Frankston, Bel Sorriso, Orna Silas Chocolates, Hoyts Cinema Frankston, Le Mans Go Karts, Baden Powell Cellars, Drummond Golf, Two Bays Office Products and Karin Hann.
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14. Represenatives of the 12 not-forprofits which each received $500 from the trivia night: The Pyjama Foundation, Headspace Frankston, Peninsula Hospice, MiLife Victoria, City Life, Leukemia Foundation, Dress for Success Mornington Peninsula, Commuinity Support Frankston, SASI, Brotherhood of St Laurence and Wallara.
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INTERNET SALES & GST
Men are the big spenders on internet
year. The report found men are more likely to purchase electronic equipment (39% versus 21%), videos, DVDs or games (28% versus 21%) and computer hardware (23% versus 11%).
Women were more likely to purchase cosmetics (21% versus 6%), groceries (22% versus 13%), books (46% versus 32%) and clothing, accessories or shoes (54% versus 47%).
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Men are spending more than twice as much as women online, preferring to buy electronics and video games. Women, on the other hand, prefer purchasing cosmetics, groceries and books, according to the 2015 Sensis e-Business Report. Men spent $6500 online – 2.7 times more than women who spent $2400 on average last year. Sensis commercial director, Rob Tolliday said: “You might not expect to see men spending more than women online, but when you look at what they are purchasing it starts to makes sense. Twice as many men as women purchased computer hardware last year for example.” The survey, measuring online experiences of 1000 Australian small and medium businesses (SMBs) and 800 Australian consumers, found 61% of males and 62% of females made online purchases, with the average Australian spending $4400 for the
GST theshold costly to run While lowering the GST-free threshold for goods purchased from overseas is a good policy worth pursuing, the complexities of actually making it happen are starting to sink in. Alex Malley, chief executive of CPA Australia, said Australia’s $1000 threshold was out of step with much lower thresholds in other countries and put Australian retailers “at a significant competitive disadvantage with obvious consequences for Australian jobs”. “The problem holding us back from lowering, or even removing the threshold, is the massive administrative costs it would create,” Malley said “We shouldn’t disregard the work of the Productivity Commission that found in 2011 that removing the threshold would generate revenue of around $600 million at a cost of well over $2 billion.” Malley said that even assuming Australia
could get large retailers such as Amazon to apply the GST to Australian purchases, there remained many small online retailers around the world that would have to be dealt with. “So, while you may be able to address the global elephants like Amazon, the risk is that we get overtaken by the millions of mice following along.” Another option for dealing with the administrative costs was to apply a new processing levy to cover those costs, which would enable the government to collect the additional GST revenue. “But with a very strong anti-red tape agenda, it’s hard to see the government going ahead with a new processing tax,” he said. “It’s great that the premiers, chief ministers and the Prime Minister through COAG are getting behind this move but as always, the devil is in the detail and the process demands ongoing attention.”
Minister’s advice to online shoppers There has been a timely reminder to avoid the pitfalls of online shopping after a spike in the number of complaints to the Victoria’s consumer watchdog. Minister for Consumer Affairs Jane Garrett said more than 7433 complaints have been reported over the past year, compared to 5943 in 2013-14. The number one complaint was buying clothing, shoes and goods that never arrived (1382), followed by buying goods with major defects or failures such as fakes (989). Disputes over refund or return rights (680) ranked third, followed by changeof-mind purchases (387), and goods with minor defects (379). Consumer Affairs Victoria said the complaints were related to clothing and footwear (563), airline services (362), holiday accommodation (321), hair and beauty (273) and mobile phone handsets and accessories (235). Minister Garrett warned that as more people moved online to do their shopping, they needed to take some simple precautions to protect themselves such as doing research and using secure websites and payment methods.
REWARDS FOR FELXIBILITY
More than a third of Australian employers believe that offering flexible work arrangements is the best way stop staff looking for jobs elsewhere. Research by “workplace relations specialists” Employsure shows worklife balance overshadows pay rises and training when it comes to job satisfaction. “Our research clearly shows that staff often need to organise working hours around family commitments and they appreciate the opportunity to do so,” Employsure managing director Edward Mallett said. The findings came from a survey of 461 SMEs and follow statistics from consultancy firm Accenture, showing one in five employed Australians are looking for a new role at any given time. Mallett warned that rejecting requests for special arrangements could land employers in hot water. “Permanent employees are entitled to apply for flexible working arrangements if they have been with the company for 12 months and are the parent or primary carer for school-aged or younger children; are a carer; have a disability; are 55 or older; are experiencing family or domestic violence or they provide care or support to someone in their household or immediate family who are victims of family or domestic violence.” Mallett said such requests “can only be denied if there are reasonable business grounds to support this decision”.
LOST WEEKENDS
“Always buy from retailers you know and trust, do your homework and make sure you pay using a secure payment method such as PayPal,” she said Under the Australian Consumer Law (ACL), buyers have the right to a refund, exchange or repair, if the product is faulty, doesn’t match its product description or never arrives. However when buying from overseas, it is very difficult for people to enforce their rights under Australian Consumer Law. For a better understanding of the law, download the app, MyShopRights, or go to http://www.consumer.vic.gov.au/shopping/ online-shopping
Full time small business owners on average work seven hours overtime a week, a MYOB survey of 1000 SME owners has found. The results show 59% of SMEs work more than 35 hours a week, almost a quarter work over 45 hours and 3% work more than 65 hours. Despite the reality, 39% of business owners placed flexibility as their long term goal, and maintaining a balanced lifestyle was far more attractive than the financial benefits of operating a business. “What’s interesting is that although so many SMEs start their business as a lifestyle choice prioritising flexibility, they are so overworked with running their business, they end up working almost six days per week, giving them no flexibility at all,” MYOB general manager SME Solutions James Scollay said. Most struggled with administrative duties.
September 2015 | Frankston / Mornington Peninsula / Dandenong BusinessTimes | 11
cover story: ashleigh hoult
Ashleigh Hoult, the driving force behin d lead-generating company PromoDonna. 12 | BusinessTimes| Frankston / Mornington Peninsula / Dandenong | September 2015
leading the way
to sales
Ashleigh Hoult describes her job as operating an introduction agency. She brings “high quality sales leads” to a company’s front door. what happens then is up to the two parties involved: they either do business or decide they aren’t suited and walk away. WORDS AND PICTURES: KEITH PLATT
was a time of study but also a year she often fondly refers back to: being on the student leadership council, delegating and running meetings. She attributes much of her early interest in psychology to her father’s love of motivational, business-oriented people – “he has bookshelves full of their work”. “I’m really intrigued by what makes ‘people tick,” she says. Hoult seems to always have had a part-time job and, while studying for her Bachelor of Commerce (majoring in public relations) at Monash University’s, Berwick campus, learnt the ins and outs of retailing at Peninsula Surf. Work experience in PR came at Frankston Hospital under the former communications manager John Jukes. “He was a grammar Nazi for me,” Hoult says. “I loved the people side of PR.” So, armed with her work experiences and knowledge of PR, sales and marketing, Hoult was ready to hit the phones “and I quickly got a few clients”. At the same time, Hoult decided to keep up her studies in psychology, particularly with neurolinguistic programming (NLP), a practice she now “transfers” to her PromoDonna “team”. NLP creators Richard Bandler and John Grinder claim it can be used to “model” skills of exceptional people, which can then be learned by others. Hoult now specialises in finding sales leads for companies in the IT, HR, branding and design industries. “The B2B space is our area and we specialise in service-based industries … we’re not churn and burn telemarketing.” 14
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Hoult runs the PromoDonna, a sales team that promises “effective cold calling” and arranges meetings between suppliers and potential buyers. The PromoDonna differs from telemarketing in that its salespeople occupy “the high end of that space”, delivering “complex B2B messages where a traditional unprofessional, telemarketing approach just won’t work”. Hoult is in the business of delivering sales leads. She designed PromoDonna to fill a gap she spotted in the market place. “Most business owners are good [salespeople] when they’re face to face, but before this happens they have to make contact with potential buyers,” Hoult says. “We don’t sell products, we sell appointments.” After gaining her PR qualifications Hoult, on the recommendation of a friend, found her way to a corporate sales firm “where the boss said ‘you need to generate leads’. I asked ‘how do I do that’ and she pointed at the phone”. “I was very much thrown in the deep end.” After working with a Mornington Peninsula-based management company “that, with almost divine timing went under, I decided it’s now or never”. Like many small business owners Hoult started from a small base. Based, as she puts it, in her bedroom, she started to make calls. “I had nothing behind me, so I had to make it work.” Her drive and enthusiasm garnered a few clients in a relatively short time and within one year she had enough customers to start hiring her own staff. In retrospect, there’s no mystery to her making such a decision. The “Frankston born and bred” Hoult was school captain at Frankston High the year she graduated. It
September 2015 | Frankston / Mornington Peninsula / Dandenong BusinessTimes | 13
cover story: ashleigh hoult
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Hoult is a “big networker” (and a regular speaker for affiliates of the Women’s Network of Australia) and says that while many clients come through word of mouth, the main way of generating business for PromoDonna is through making cold calls – “using our own skill set”. The second biggest client intake comes from Hoult networking while word of mouth ranks a close third. Once hired, Hoult researches a client’s product and target markets before her team hits the phones, “becoming an extension of their sales team”. “We have a different skill set [to a firm’s salespeople] and we sell them, not their products. We sell appointments.” The PromoDonna consists of Hoult and six callers (“we never work from a script”) operating from an office in South Melbourne. The move to be closer to the geographic centre of her business catchment area followed a short stint working from home (where Hoult soon realised she needed an office environment) and a rented office in Frankston. The incoming jobs soon made it necessary to be closer to Melbourne. While happy with having half dozen people in her team (five women and one man), Hoult says she would like to expand “but not into a massive call centre. I think the sweet spot would be having maybe 20 callers.” Although often a cause for jokes among friends, Hoult reveals she sees having a “phone voice” as another weapon in her armoury of persuasion. “It’s not a coincidence,” she says of sounding different “live” and on the phone. “You need to have an authoritative phone voice. I modelled myself on news reporters. They’re a great role model in that they can switch into a character and will always bring something authentic to the conversation. “Remember, you only get three to five seconds to capture someone’s interest. “So, we make it about the prospect, what’s in it for them, how I can help the person I’m talking to.” At the same time, Hoult says, there’s a need to build a rapport and “be very strategic and control the situation”. Adopting or adapting to the ways of broadcast news reporters comes easily to Hoult who has played small parts in several TV shows, including City Homicide and
Ashleigh Hoult: “If you’re talking the most, you’re losing.
Neighbours. She knew there would be no return appearance in one of the shows when the script called for her to be a corpse in the opening scene. It got a bit better from there on as she came to life for a series of flashbacks. But of course the end of that episode was also the end for her character. Hoult says PromoDonna will “develop a set of tactics to engage the decision makers” her clients want to meet. She says her acting skills have provided her with “unyielding confidence and flair” for presentations. Her acting career started with amateur theatre, which, by her late teens, led to television. Although she still retains an agent, Hoult says “sales presenting is where I find my stage”. The “challenge of turning a ‘no’ into a ‘yes’ – the human psychology of it all – had me really grow to love it”. “Business owners are great at pitching what they do if they’re in a face-to-face selling environment, but it’s leads they need to generate and this is what they shy away from,” Hoult says. So often she hears that people do not like
14 | BusinessTimes Frankston / Mornington Peninsula / Dandenong | September 2015
selling or being a salesperson “but I believe everyone sells – if you’re a business owner you have to sell, it’s part of your role”. “We’re the first half of the process, finding their ideal client. We sell our clients, not their product. “At the end of the day we want them, our clients, to become the expert, not us.” Hoult says the “biggest competition” to PromoDonna is “where a company thinks it can outsource to telemarketers or an overseas call centre – I tell them to go for it”. Her team is also busy “making call after call, but we don’t have a script or sound robotic”. “We’re a cold calling, lead generation firm. The only deals clinched over the phone are the creation of professional connections. “I love doing the grunt work that everyone else wants to avoid … that’s the gap I saw in the marketplace.” Hoult’s has a tip for anyone working the phones: “If you’re talking the most, you’re losing”.
HAS JUST GOT RIDING FOR A CAUSE Keen cyclists Mike McKenzie and his mate Stan Proctor are cycling 3750 kilometres from Melbourne to Darwin to raise awareness and money for the 6.1 million Australians with arthritis and other muscle, bone and joint conditions. The money from the month-long Make a Move Ride will to Arthritis and Osteoporosis Victoria. McKenzie started planning the ride after doctors found his sone Brad, 29, had an inflammatory form of arthritis called ankylosing spondylitis (AS). Three months later Mike discovered he too had AS and the added guilt of knowing he was responsible for passing it on to his son. McKenzie and proctor’s wives Julie and Jane are also going along for the ride. The intrepid riders are hoping businesses will help out and have arranged a $2000 promotional package for the business that raises the most money. The “package” consists of a half page advertisements in Arthritis Victoria’s Update magazine (14,000 readers –$918.50); enewsletter (7500 subscribers – $231); website ($880); and posts on Twitter and Facebook. Details: www.makeamoveride.org.au
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GAMBLING LOSSES RISE Losses to electronic gambling machines within the City of Greater Dandenong rose by $7 million in the past year. The Victorian Commission for Gambling and Liquor Regulation (VCGLR) reports that losses to pokies in Greater Dandenong went from $110 million a year, to $117 million in 2014/15 – or $320,000 A day. These losses equal $998 for every adult in the city, the highest rate of gambling losses in Victoria. Since the introduction of pokies in Victoria in 1993, total losses to pokies in Greater Dandenong have reached $2.7 billion – the equivalent of $42,000 a household. The latest figures have alarmed Greater Dandenong mayor Sean O’Reilly who says gambling losses tend to inflict the greatest damage upon the least affluent communities. Confidential advice and support for people affected by gambling problems is available from Gambler’s Help on 1800 858 858.
76 Reid Pde (PO Box 428) Hastings VIC 3915 P. (03) 5979 7744 F. 03 5979 7944 E. artroom@galaxyprint.com.au
September 2015 | Frankston / Mornington Peninsula / Dandenong BusinessTimes | 15
contributions
DIVERSITY IN THE WORKPLACE *Rhiannon Pilton Never before have business owners faced such rapid workplace changes. They face generational changes, cultural evolution, emerging markets and rapid advances in technology. The diversity and complexity of corporate and industrial systems are breaking down the old barriers of recruiting and developing and retaining talent. However, new barriers will emerge and employers will need to be proactive in the way they hire and hold on to their best people. Differences and diversity will be seen as assets rather than liabilities. Managing diversity starts with accepting that modern workforces comprise a diverse population of people, including gender, age, background, race, disability and work style. Diversity can be broken down further into two categories – visible diversity traits and invisible diversity traits. Visible
traits, as the term suggests, are apparent – like race, gender, physical abilities, age and body type. Invisible diversity traits include sexual orientation, religion, socio-economic status, education, and parental status, among other things. While closely related, inclusion is a separate concept from diversity. Inclusion means a work environment in which all individuals are respected and treated fairly. It is about having equal access to opportunities and resources where everybody can contribute to the company’s success. Employers have a legal responsibility to take “reasonable steps” to prevent harassment and discrimination occurring in the workplace. They might be held “vicariously liable” for the actions of their partners, colleagues, employees, agents or contract workers. Also, employers must ensure that people who make a complaint, or are involved in a complaint, are not victimised or treated less favourably as
a result. For employers to avoid liability for workplace harassment, discrimination or other unlawful behaviour, they need to be able to demonstrate they took “all reasonable steps”. The ASX Corporate Governance Council has introduced a requirement for Australian listed companies to adopt and disclose a diversity policy and measurable objectives relating to gender or explain why they have not done so. Diversity and inclusion will continue to dominate the discussion in boardrooms and HR divisions as the makeup of the workforces continue to change. Businesses to maintain talent continuity and broaden their appeal in various market segments, they must develop a clearer understanding of diversity and inclusion and how those concepts fit together. The benefits of building a workforce of diverse people who are empowered to positively contribute to your success is priceless. To test the strength of your diversity
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and inclusion efforts, talk to experts. PWR Consulting Group uses an employee engagement survey to help employers understand how their employees feel about diversity and inclusion. Rhiannon Pilton is Director of PWR Consulting Group, advising on recruitment, business solutions and human resources, 0402 807 144, www.pwrconsultinggroup.com.au
social storytelling Jessica Humphreys* Social media consultant
Stories make brands interesting. People often don’t want to engage with a business on social media, they want to engage with the people within the business. Storytelling offers you the opportunity to humanise your brand. What stories should you tell? Business owner’s story Also known as the Entrepreneur story, it allows you to come out from behind the shadows. What kind of things should you include? • Share a little bit of insight into your personal life. Give people the chance to develop a personal connection with you • How did you start your business? • What inspired you? • What have been some of your biggest achievements along the way? • Where do you see the future of your business heading? This kind of story can make you seem approachable, it can create a new point of interest and gives people a chance to get to know you and what makes you tick. Staff story Often organisations have a goldmine of potential staff stories at their disposal. What kind of things should you include? • An insight into who they are as a person. • What is the focus of the story? • What do they as an employee bring to your organisation? This kind of story again allows your audience to build a relationship and feel a connection to your staff members. More than that, it often means your employees feel like they are being recognised. Product story Got an amazing new product you want to share? Rather than trying to sell, sell, sell make it into a story.
What to include. • Don’t simply describe the features. Tell people what they can do with the product and how it will benefit them • Make an emotional connection. • Share testimonials. Think about a specific problem that your product can help your audience address and build your story around that. Make it emotional. Customer story Often customers have amazing stories to share, and usually they are more than willing to. What it should include. • Identify something with a point of difference. It may be you have a customer who has been loyal to you for 30 years, or someone who has found your product or business has helped their everyday life, it may be an entire family that always goes to your restaurant for their special occasions – so to them your venue is associated with many memories. Ask them if they will share those memories These stories go beyond the business and towards building community. *Jessica Humphreys operates Social Concepts, a social media consulting business. Questions to Jessica@socialconceptsconsulting.com
conference and awards for women in business
Mornington Peninsula’s inaugural full day conference and cocktail event for women in business will be held in November. Hosted by Soar Collective, SoarCon will showcase seven inspiring female speakers from Melbourne and Interstate. The event, which includes five awards for women in business, is an interactive experience where attendees will be encouraged to apply their ideas and learnings. “‘The day Soar Collective was born I had an immediate vision of tens of thousands of women on the MCG listening to incredible female entrepreneurs, being inspired and empowered,” says founder Jess Jones. “I knew straight away that this was
something I had to do and I’m thrilled to be bringing SoarCon to the Mornington Peninsula.” “There are hundreds of incredible women in business in our region and no large scale events to help them grow and prosper. While there are plenty of business conferences, workshops and networking events on offer in the city, regional businesswomen don’t always have the flexibility or the luxury to attend them.” SoarSon speakers will include Tina Tower, founder of Begin Bright and Telstra Young Business Women of the Year 2014; Robelen Bajar, founder and publisher of women.com.au; Julia Bickerstaff, founder of The Business Bakery; Elle Roberts, creativity coach and business mentor and founder of The Artful Business Conference; Caroline Leslie, author, entrepreneur and founder of Home Made Green Cleaning; Chantelle Baxter, CEO and co-founder of One Girl; and Katherine Sampson founder of Healthy Habits and Hello Sam. More than just a conference, the Soar Awards cocktail event will follow, giving businesswomen within the local government areas of Frankston, Mornington Peninsula, Kingston and Casey the chance to be recognised for all of their hard work. There are five awards – Business Owner (product based); Business Owner (service based); Professional - employed by a business or a company; Community – volunteers or employed by a not-for-profit; Soar Collective Woman of the Year. “The Soar Awards aims to give local women the recognition they deserve,” Jones said. “We’ve read some wonderful stories by locals who have nominated women they know doing an awesome job, providing a great service or product or offering excellent customer service consistently. “It’s wonderful to see such support and appreciation from customers, co-workers or friends. I think the judges have a great challenge ahead of them.” Nominations for the awards are already open and close 30 September. Both SoarCon and the Soar Awards are expected to sell out. Book online at www.soarcollective.com For details contact: Jessica Humphreys – Social Concepts Director, 0407 082 493. Jessica@ socialconceptsconsulting.com
September 2015 | Frankston / Mornington Peninsula / Dandenong BusinessTimes | 17
health
Seeking our own path... along the Daoist way When I was studying Chinese medicine I was fortunate to encounter an experienced practitioner who not only had a thriving practice but the patience to share his insights with students who, while thirsty for information, were raised with Western minds and could therefore be slow on the uptake. Chinese medicine is tied up with the philosophy of Daoism, which is not religious in that it does not countenance supernatural forces, but takes its cues entirely from the observation of nature. It does, however, grapple with questions about how one should live, what constitutes a healthy, fulfilling life, and what undermines that goal. Unlike Western medicine, the worldview out of which Chinese medicine evolved has a lot to offer on this topic. Students came in and out of this practitioner’s orbit, some not appreciating the clarity of his thinking or grasping his I’lllead-you-so-far-but-you’ll-have-to-worksome-stuff-out-for-yourself approach, while others hung around to become disciples of his clinical methodology. Always, though, he remained on guard against the perception that he could be held up as some sort of guru — no matter if some students might have been inclined to bestow such status. He distanced himself instantly from the merest hint of guru worship. He found the concept distasteful; said it attracted needy followers for all the wrong reasons, and would be detrimental to student and teacher. It could only end badly. On this he took a strictly Daoist line, which is to say that no single person (and certainly no text) holds the answers to life’s “spiritual” questions—not because these things are beyond reach, but because they defy instruction. The famous 6th Century BC Daoist text, the Dao De Jing, is the second most translated book in existence (after the you-know-what), and it begins with the most famously enigmatic, cryptic and frustrating line in literature: “The Dao that can be spoken is not the eternal Dao.” In other words, if you can explain the Dao (life, the universe and everything) with words, that’s not it … but here’s a book
Michael Ellis*
Chinese Herbalist
(The) Daoist line is to say that no single person (and certainly no text) holds the answers to life’s “spiritual” questions — not because these things are beyond reach, but because they defy instruction. about it. So if someone’s telling you they have the answers, they don’t. And if you want it served up in a neat package, don’t bother inquiring within — perhaps try the religion down the road. Then follows a guide, in suitably elliptical language, as to how to gain an understanding of the Dao essentially by experiencing it — living life — and grasping it for yourself. Kind of a “create your own religion”. Although I had no involvement with it, I always thought the now discredited Mt Eliza Ashram was a good place. Like gurus of all persuasions its swami attracted many followers, people searching for something or retreating from something and eager for the sort of enlightenment this form of Hindi philosophy advertised. Not a cult, I assured some cynical friends. Like other such groups, the ashram offered a way for people to connect, both socially and — via the swami’s mystical influence — to various spiritual dimensions. (A Daoist might think that to envisage “spirituality” as something to be pursued or appreciated separate from one’s day-to-day life, via weekend rituals or chanting mantras in foreign languages, is to
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make a fundamental error.) So over 20-odd years the Mt Eliza swami gained a national profile as Swami Shankarananda, the down-to-earth guru of Kashmir Shaivism talking meditation, self-inquiry and being “happy for no good reason,” the title of one of his half dozen books. Turns out the guru had good reason to be happy — until this year that is, when the scale of his admitted sexual impropriety became public and brought his edifice crashing down, leaving a lot of disillusioned ashramites in its wake (to put it mildly). Another day, another guru revealed as mere ordinary human being — and seemingly with more “issues” himself than those people he was purporting to help. I know the odd long-time follower who says that the swami’s message still resonates; they liked what he said and benefited from his meditation courses (and besides, who wants to contemplate that they may have invested so much of themselves in an elaborate charade?) I don’t know the details, and I’m not one to think in black and white terms anyhow, but it’s hard not to be cynical about what took place. The still under-appreciated role of community organisations, from football clubs to churches, is to encourage people’s sense of connectedness as a counter to the increasing isolation and ultimate loneliness of modern life (don’t start me on how politics exacerbates this, either). Indeed, adequate “connection” is the crucial quality missing from most of our lives. Its absence leads to addictive behavior of all kinds. Deep down, it’s what we crave. It’s why a place like the ashram thrives as it did. (And why people feel the guru’s “over” connection was a serious betrayal.) As a society, we are crying out for more shared experience, for a greater sense of community, for more connection. We don’t need gurus, but we do need each other. •The American author Johann Hari has been in Australia recently arguing that a lack of connection is the true cause of drug addiction—actually of all forms of addiction. It’s worth seeking out his compelling Huffington Post article online: “The likely cause of addiction has been discovered, and it is not what you think”. *Michael Ellis is a registered Chinese herbalist in Mt Eliza. Visit www.mtelizaherbal.com
MARKETS
A guide to China and us Someone asked to illustrate the pros and cons of our current economic settings could begin by contrasting two very different companies: Arrium and Select Harvests. Arrium, formerly One Steel, a BHP spin-off, makes and distributes steel and mines iron ore. Select Harvests grows almonds. Arrium is down 92% since September last year; Select Harvests is up 75%. Arrium wrote off $1.9 billion last month; Select lifted earnings 120% a share. Wide as these extremes are they may increase. Arrium’s iron ore competitors are increasing supply as prices fall and believe that China’s steel demand will rise. In fact, as this column has pointed out for 18 months, it will fall. In contrast, Select’s few competitors are struggling to maintain production. Its trees are maturing as drought afflicting its main competitor - Californian growers - extends for a fourth year. Even when the drought finally breaks Californian growers will be on the back foot as they survived by depleting water aquifers that will take centuries to recharge. Now this critical resource is largely gone. Select is even benefitting from the pain of companies like Arrium. The more they export iron ore at give away prices, the more the $A drops shielding Select from imports and adding margin to exports priced in US dollars. China’s changing economic policy will favour Select and penalise Arrium as it reduces reliance on heavy industry and promotes
Richard Campbell* Stock Analyst
Just as China has relied too long on its heavy industry and investment policies, Australia has relied too much on China, an economy with contracting exports, rapidly rising debt and over-capacity in 20 or more industries. services and consumption. As this side of China’s economy grows, it will be easier for households to buy a wider variety of healthy food. There are more contrasts to add, but the point is clear: these two companies - one in difficulties; the other in rude financial health illustrate the crossroads we are at. Just as China has relied too long on its heavy industry and investment policies, Australia has relied too much on China, an economy with contracting exports, rapidly rising debt and over-capacity in 20 or more industries. Twenty or more small Australian iron ore exporters have either collapsed or are
unravelling as the iron ore price follows the steel price down. Resource economists ignored the warnings that China’s over-capacity in steel was every bit as bloated as in 20 other industries. Independent researchers pointed out that China had over-built offices, apartments and much infrastructure and so, inevitably, steel demand would fall. Other researchers pointed out how much this over capacity has raised debt. The critical question is whether this cross over can be done before China’s debt becomes self-consuming. The waste from misdirected spending is now so great that China is spending 28% of its GDP on servicing an ever increase debt., which now stands at $29 trillion or four times the level of 2007. Arrium and Select are of course mere specks on this immense canvas. But they do form useful data points allowing a crude form of investment triangulation which may help to see through to the fundamentals. We need to understand the realities of China’s degraded rivers and soils, the scale of its pollution and limits of Beijing’s power to effect quick change. In other words, to avoid more investment disasters like Arrium we need less wishful thinking and more long term corporate planning. This is not to suggest that Arrium will never rise from the ashes or that Select Harvest’s profits will never turn down, but is simply to say that the two demonstrate how dangerous it is to not research markets at depth. * Richard Campbell is Executive Director of Peninsula Capital Management, Tel. 0415687431. rcampbell@peninsulacapital.com.au
n Bizzquiz
RHIANNON PILTON Director PWR Consulting Group
Rhiannon Pilton spent years in the corporate world, “investing” her knowledge and passion “for all things HR”. As a person committed to continued professional development and market trends, she started PWR Consulting Group “with the sole vision of assisting companies that don’t have access to a human resources department and the many hats it wears”. “With a great team and a steady footprint in the SME space, I am fortunate to love every minute of the work that I do and the privilege of the clients of whom I get to interact with everyday,” Pilton says.
I dreamed of being … a lawyer. My first paid job was … through high school as a underwater ceramic technician - washing dishes at a restaurant. In10 years I will be … still the same age. Our business planning entails … old fashioned brainstorming style. Tip for success … Do what it is you love. I am inspired by … those closest to me. Anyone starting a business should … build the right foundations first. I’ll know I’m successful when … you have made your mark on the world. My mother and father always told me … I could and would be whatever I put my mind to. I wish I had … more coffee. I wish I had not … had so much coffee.
September 2015| Frankston / Mornington Peninsula / Dandenong BusinessTimes | 19
networking
‘Success is about the uncommon application of common knowledge’
The ‘common’ secret to success Over my career, I have observed people with different personalities, backgrounds, and behavioral styles achieve success in life. Many times I wondered if there was a reoccurring theme running through their success stories that would clearly illustrate what creates success. When I was interviewing average business owners and entrepreneurs for my book, Masters of Success, I asked thousands of them what they felt the “secret” to success was. They generally told me things like: vision, goals, passion, persistence, and systems. I then asked many highly successful people who had obtained great wealth or personal success in business, sports, or science. They generally told me that success involved things like: vision, goals, passion, persistence, and systems. Sound familiar? This made me very curious. So much so that while I was teaching at a state university in the Los Angeles area, I asked hundreds of college students what they thought was the secret to success. These were all undergraduate students in business with little or no real world business experience. What I found amazing was that they also said success
Dr lvan Misner*
Networking specialist
involved things like: vision, goals, passion, persistence, and systems. Everyone I interviewed or wrote about regarding the secret to success – from Buzz Aldrin to Erin Brockovich, from average businesspeople to undergraduate college students – gave me virtually the same answer. So if we all know what it takes to be successful, why is it that we aren’t all as successful as we’d like to be? I have found that many people are looking for some mysterious and everelusive secret to success beyond what they already sense to be important. The truth is, there is no great mystery. In fact, very often “success is simply the uncommon application of common knowledge”. When you hear successful people talk about the secret of their success, have
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you noticed that you rarely hear any real secret? What you do hear about is their unwavering adherence to some system or approach they believed in and followed with intensity and determination — an uncommon focus on something that less successful people simply take for granted or pay lip service to. Successful people focus on the goal and work through or around everything else. In sports, this is called “keeping your eye on the ball”. They do this with a passion and a vision – and they do it with persistence. Even when the ideas are simple and easy to understand, they often don’t get implemented, because people think there must be something more. After I presented a keynote speech in Sweden a while back, a woman in the audience came up to me and said, “Everything you said makes so much sense. Much of it was about things that I’ve heard were important to do, but I never did them because they seemed too simple. I thought there had to be more to it than that, that the road to success was much more complicated and daunting. So I wasted valuable time looking for some secret.” Then she said, “I don’t understand why people often find it easy to make things so difficult. Myself included.” Success comes to those who have not only a passion and a vision, but who also have persistence and a commitment to perform the fundamentals over and over, continuing to work and learn until they can perform these fundamentals flawlessly. In the end, success is not about being different or having secret knowledge. In the end, everybody knows what the goal is and how to achieve it. This is common knowledge, and it’s been around for a long, long time. Success is about knowing these things and having the will to go after them without giving up, making excuses, or getting sidetracked. Success is about the uncommon application of common knowledge. *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
up in the cloud
Latin Americans look for more ‘cloud’ Latin Americans strongly agree that access to cloud storage is essential. However, Australians, Germans and Canadians are not convinced Internationally, nearly a third of all surveyed strongly agreed that cloud storage was essential to them, with agreement peaking in Mexico, Brazil, Turkey, China and Russia. GfK asked internet users in 22 countries about how strongly they agreed or disagreed with the statement: “it is essential for me to access or store my photos, documents, music, and other content in ‘the cloud’” (‘The cloud’ is defined as “a secure internet location that you can access from any location or device”). Looking at individual countries, Mexico was the clear ‘cloud leader’, with almost half (49%) of its online population giving top-two agreement that the cloud was essential for them. Following were Brazil (44%) and Turkey (43%).
Late internet adopter markets, which tend to be more mobile-oriented, having leap-frogged PCs, have more people who say cloud storage is essential. The other end of the scale was dominated by Germany, where half (50%) of the online population strongly disagreed that the cloud was essential. They were followed by Canada (39%) and Australia (37%). “It is mainly countries that adopted the internet early on that do not see cloud storage as essential,” said Arno Hummerston, global director of digital market intelligence at GfK. “Late internet adopter markets, which tend to be more mobile-oriented, having leap-frogged PCs, have more people who say cloud storage is essential. The implication is that those who started off on PCs or laptops - which have large internal storage - now have a significant mental adjustment to make to accept cloud storage. But those who have mostly only ever used mobile devices find cloud storage normal,” Hummerston said He added that with a significant
percentage of everyday people saying the cloud was essential to them, there was clear market potential for technology companies offering services that enhanced the cloud experience. “The obvious example is increased security or customisable services, such as digital photograph albums which can easily be shared with other people.” “The growing attraction of the cloud is not so much about storage – a decent external hard drive delivers that – but about convenience: being able to access files from any device or location, without having to carry around an external hard drive or USB stick. It also eliminates the risk of
breaking or losing your storage device and all the items it contains. In particular, the cloud offers a simple way to secure the photos and videos taken with smartphones when their internal storage capacity becomes full or the device is not accessible – with the bonus that you can then access your images from any of your devices. “Bearing these usage reasons in mind will help businesses tailor their offers to resonate with the growing ‘cloud market’,” Hummerston said The survey showed that the group most dependent on the cloud was 30-39 year olds. They are followed closely by those aged 20-29.
September 2015 | Frankston / Mornington Peninsula / Dandenong BusinessTimes | 21
MANAGEMENT
Who loves customer complaints? Most business leaders work hard to build relationships with customers and the Holy Grail is generally accepted as customers having strong emotional connections with your business. Think of Harley Davidson whose customers tattoo the company logo on their bodies. But what happens when these emotional connections turn negative and lead to complaints? Every business will have occasions when it fails to meet an individual customer’s expectations and this will usually produce an emotional response. The very worst emotional response is one where the customer gets upset and just walks away, probably permanently. In these cases, they become lost customers who have not given you an opportunity to remedy whatever their problem was. It can get even worse when they tell their family and friends about their bad experience, as this can convince other current or potential customers to stay away from your business. Some disappointed customers are prepared to take some action to help you to remedy their problem and these are the ones that should be cherished and encouraged. The critical test is how your team handles every customer with a complaint. The first step is to recognise that, by definition, customers who have a complaint will be upset and will be carrying some emotional baggage. Whoever is in your front line to interact with the customer needs to understand that these customers will be emotional and therefore, they will need sensitive and professional handling. In my experience, too many people handling complaints are defensive too quickly before they fully understand the full details of the complaint. This tends to belittle the complaint and can add to the emotional tension. It is greatly preferable to train your people to listen and ask questions in a professional manner so that they can develop a clear picture of both the complaint and what the customer believes needs to be done to remedy it. This helps to reduce the emotion in the discussion and can help to identify the facts, the real problem and hopefully, a mutually positive solution. Complaints should be treated like gold nuggets. They are precious and valuable to your business and the customer who is
Hamish Petrie*
Business consultant
willing to give up some of their time to give you this gift must be treated with respect and understanding. One critical aspect of complaints is they must be recorded and shared around your organisation so that the maximum value can be extracted from each and every complaint. Don’t consider asking the customer to write out their complaint, as this will only add to their emotional state. Your front line people should be prepared to demonstrate the importance of the complaint by showing the customer that they are recording the details for follow up and correction of the problem. If you have a larger organisation, then the data from complaints can be a very valuable source of knowledge that can help you to understand your rate of improvement. When your front line people receive a complaint, they need to recognise that it is important to fix the problem as quickly as possible. They should to be empowered to replace defective products, give vouchers to replace bad service and generally take actions to ensure that the customer leaves your premises feeling that they have gained something from the interaction. It is important to prepare your front line people to reward customers who give you the gift of a complaint so that their initial negative emotions can be turned into positive feelings about the handling of their complaint. Once a complaint has been heard and recorded, the follow up becomes really critical. Resolution needs to be fast even if there are significant internal issues that need to be addressed, particularly when the issue may actually relate to another party, like one of your suppliers. In these cases, it is important to resist the temptation to just refer the problem to your supplier and hope that they will handle it correctly. Your people need to take on the role as advocates for your customer and undertake to
22 | BusinessTimes Frankston / Mornington Peninsula / Dandenong | September 2015
address the problem with the supplier. With today’s communication technology, every complaint should capture a mobile phone number so that a call can be made to close the loop with the customer and thank them for taking the time to make the complaint. Ideally, someone senior in your business should make this call, such as the owner, a senior executive or a manager. The more senior the caller, the more positive will be the reaction from the customer as they will feel that their time and effort to make the complaint has been worth while. Complaints are based on unfulfilled expectations and sometimes the problem is that the customer’s expectation was unreasonable. It may also be that the customer just does not understand how to use your product correctly. Overall, it is important that your front line people take the time to clearly explain the nature of your product or service without being defensive. Even when the customer is wrong, it is important that they leave with something positive from the interaction. Overall, complaints are gifts given by customers who want to use your products and services. Ideally, your people will be trained and capable of turning an initially difficult issue into a win-win outcome where the complainant will become positively connected to your business as a long-term customer. Everyone should love customer complaints. Action planning questions: 1. Have you trained your front line people who handle complaints so that they use optimum processes and behaviours with upset customers? 2. Do you have a system to record, remedy and analyse customer complaints? 3. Do your senior people make personal phone calls to close the loop back to the originator of each complaint? 4. Are your front line people trained not to pass the buck but accept responsibility to have the customer leave happily?
*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 2015
MIXED REACTION TO WAGE RISE Australian small and medium businesses had mixed feelings about the national minimum wage increase, according the first instalment of MYOB’s monthly SME Snapshot survey. The survey includes more than 500 of MYOB’s 1.2 million customers and covers issues relating to business conditions It revealed that 34% fully supported the 2.5% increase to minimum wages that came into effect from 1 July. However, the hospitality and retail sectors were the most reticent, with 54% saying the hike would have a negative impact on their businesses.
“This shows that some SMEs have taken the increase in wages in their stride, which points to a certain level of confidence,” says MYOB CEO Tim Reed. “However, some are feeling the pinch. The hospitality and retail sectors are struggling with the change, and the nature of these businesses means they’re most likely to be hit by the multiplier effect on penalty rates, which makes the increase something of a double whammy,” The feedback on minimum wages was timely, coinciding with release of the Productivity Commission report. The report details a wide range of proposed changes to workplace relations laws, including changes to employment
standards and allowing employees to swap public holidays for other days with their employers. The Federal Government also will see whether a 20- day annual leave period could be extended or negotiated with employees to replace certain wage increases. “The Productivity Commission’s new proposal to introduce more flexible arrangements for retail and hospitality couldn’t have come at a better time,” Reed said. “It’s really about repairing weaknesses in the system rather than replacing longstanding protections for employees. “We’d like to see all participants enter into a mature discussion around this idea.”
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