Businesstimes winter 2016

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BUSINESS & NETWORKING: Frankston | Mornington Peninsula | Dandenong

WINTER 2016 | FREE

MUM’S

THE WORD CLAIRE HALLIDAY TALKS ABOUT HER LATEST BESTSELLER

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WHO/WHAT/WHERE

www.businesstimes.net.au

ISSUE 61 / WINTER 2016

FRANKSTON / MORNINGTON PENINSULA / DANDENONG

Publisher / Owner Publisher / Owner Editorial Sales Design Print

GEOFF WOODS ANDY WARRINGTON KEITH PLATT MARG HARRISON FUEL STUDIO QUALITY PRINT

EMAIL: General: inquiries@businesstimes.net.au Editorial: news@businesstimes.net.au Advertising: sales@businesstimes.net.au Artwork: production@businesstimes.net.au BusinessTimes is published 4 times a year by BusinessTimes and printed by Quality Print to Post Design & Artwork by Fuel Studio Postal: 6/22 Carter way Dandenong South Vic 3175 Tel. 03 8782 0250

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.

FEATURES

6

BATTERY POWER: A new way of using lithium batteries to store power for homes and businesses.

18

MOMENTUM THE KEY:

23

UNCERTAIN FUTURE:

COVER: Claire Halliday wanted to find out more about what it means to be a mother and decided to ask people from diverse backgrounds, as well as herself. P.12 Cover photo: Claire Halliday

Momentum is the word of the moment when it comes to outcomes - even politics.

More questions than answers surround the future use of the Port of Hastings.

COLUMNS Health: Mike Ellis Markets: Richard Campbell Networking: Ivan Misner Managing: Hamish Petrie www.facebook.com/BusinessTimesAU

2 | BusinessTimes Frankston / Mornington Peninsula / Dandenong | Winter 2016

18 19 20 22 Check updates online at www.businesstimes.

Mercedes-Benz Vans.

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IN NEW HANDS

New owners and publishers for BusinessTimes.

Quality Print to Post and Fuel Studio have joined forces to re-launch, BusinessTimes, the essential, informative guide for businesses.

Originally meeting at a Thinking Local, networking group - Geoff Woods the owner of Quality Print to Post and Andy Warrington owner of Fuel Studio - saw the potential for collaboration.

Andy Warrington has 30 years experience in graphic design, working with clients on printed and Online marketing material and Woods has an established print and mailing service. Their companies came together to look for an opportunity that would suit both businesses.

That opportunity arose with the BusinessTimes, an established and successful magazine, built on quality, informative articles and advertising opportunities for businesses both large and small.

The magazine needed new owners and this was the perfect business for an experienced print designer and an expert printer.

Quality Print to Post is an established Australian business which has been building a complete print to post service for more than 20 years, working with companies from across the country.

“We have a comprehensive service that saves both time and money because we specialise in covering everything thats needed for a successful mail drop campaign,” managing director Geoff Woods said.

“Our business covers database, design, print to posting - delivered by our walkers or Australia Post - all in one place, all handled with individual care and expertise.”

Quality Print’s one-stop service includes: Quality digital or offset printing, Marketing material including plastic cards, branded paper bags, envelopes we can source whatever you want.

A full range of finishings including inserting, sealing, folding or flow wrap.

All in house using the latest high tech machinery. www. qualityprint.com.au Fuel Studio is a truly unique, creative family business. “We are different; graphic design is our craft, it’s in our blood,” says Andy Warrington.

“Our creative business has been evolving for nearly 30 years, built on a reputation for listening to and understanding what our clients need. Fuel never forgets clients are entrusting their business and brand to us. Our job is to build brands, make them visible, enhance profiles to boost growth - all through the art of great graphic design.” Fuel Studio’s offers a complete and comprehensive design service. Branding, printed design, package design, illustration, website design and build, web-hosting and organic SEO. www.fuelstudio.com.au

Informationa overload distracts leaders A communications expert has warned that bosses are too distracted and failing to fully engage with their staff and putting businesses at risk.

“The amount of information created in the world from the dawn of time to 2003 is created every two days now, taking people’s attention away from those around them and the task at hand,” leadership consultant Mike Irving sys.

“While technology has enabled employers to be switched on day and night it can leave them feeling overwhelmed with an overactive mind.

“This can lead to problems of not really listening when their employees are talking to them or being dismissive and lacking empathy.”

Irving says this attitude leads to loss of employee loyalty and engagement, “which means if staff are asked to put in extra hours to get a job done they’ll be less likely to and they’ll most likely be scouring the positions vacant ads”.

“It is becoming harder for bosses to say thank you, for example, because they’re losing their empathy skills as technology and information distract them.”

Irving has developed an online test - The 4 | BusinessTimes

Reading the Mind in the Eyes test – which can help employers to measure their “empathy abilities”.

The test displays 36 images of eyes from the eyebrow to the bridge of the nose and participants are given multiple options to determine how that person is feeling.

“There are four possible answers for each image, but only one is correct and this test is often a good wake up call for employers,” Irving says.

He sees empathy as being the most important skill that determines a successful leader.

Irving’s four steps to improve empathy: Psychological safety: Create an environment where members of a team feel accepted, their opinion is valued and they won’t be ridiculed for speaking up.

Engage: Give staff your full attention when talking to them. If you find yourself getting distracted by your phone or your own thoughts you’re not truly engaged and present with the person you’re talking to.

Understand: Have an intention to understand what is happening with your staff and how they feel. Support them where and when you can but be

Frankston / Mornington Peninsula / Dandenong | Winter 2016

aware that it’s not your job to solve their problems. Find the balance between being supportive and ensuring they solve problems for you and the business.

Direct communication: Teams in an office who engage face to face rather than send emails when they are sitting opposite each other tend to be more connected.

Face to face communication gets the team using and developing their empathy skills and strengthens the connections that lead to top performance in a team.

“Every leader in business will benefit if they pause and take a good look at themselves to ensure they’re building their four invisible muscles – intention, awareness, interest, and attention,” Irving says.

“These muscles all play a significant role in developing empathy, and empathy plays a big part in improving the collective intelligence of the team.”

Mike Irving runs leadership skills accelerator courses across the country. For more information visit advancedbusinessabilities.com or to do the Reading the Mind in the Eyes Test www.questionwritertracker.com/quiz/61/Z4MK3TKB

BETTER BATTERIES

Harnessing lithium to the sun Two small garage-sized tin sheds in Langwarrin South may hold the key to cutting the cost of domestic power needs while providing a reliable source for off-the-grid sites.

A relatively small bank of lithium batteries developed in the sheds can be used to store enough power from solar panels to run a household for up to three days.

In trials already under way they are powering electric fences, golf buggies, caravans, small waste treatment works and now houses. These long lasting batteries can effectively store power from solar panels to be used at night or in cloudy conditions rather than diverting the daytime excess back into the grid.

The makers of the Tardis Battery say the cost of buying this excess back from a power company is inevitably more expensive than the credits received for its supply.

The relatively small cabinets required for the batteries to be fitted for domestic use seem a far cry from the project initially embarked on by its developers: an electric bicycle.

Neighborhood colleagues Andrew Lamb and David Treanor shared rides to work at General Motors in Port Melbourne. The two engineers knew car manufacturing in Australia was all but doomed and came up with the idea for an efficient electric-powered bicycle while talking about “life after GM”.

Lamb shared their ideas with Max Coulthard during a chance meeting a Frankston Chamber of commerce networking night.

Coulthard, a former senior lecturer in business strategy at Monash University, quickly realised that efficient batteries could have many more uses than just for bicycles.

“What’s unique about our batteries is that they’re small on the outside but big on the inside,” he says.

Coulthard, Lamb and Treanor formed MagEfekt in 2012 with the specific aim of “designing, building and manufacturing battery packs to meet specific customer requirements”.

Their long-term goal is to produce energy dense batteries for mobile and

Working on the MagEfekt’s battery, David Treanor and Max Coulthard.

stationary applications and make electric wheel motors using solar car technology.

Lamb had a history of being involved in the technical side of solar powered cars.

Lamb’s involvement with the Aurora Solar Car Team saw him come up with nine “unregistered patents”, according to Coulthard. “He just wanted to give them to the world and helping develop a future automotive industry”.

Coulthard said the partners decided car manufacturing was beyond their means so decided “we’d first take a look at batteries and controllers”.

“We originally thought about a complete automotive system, wheels, batteries, controller and motor,” Treanor says.

But once that idea was shelved, one of the first projects came through speaking with a wheelchair manufacturer in Noble Park about the safest technology for an electric vehicle.

“We came up with an idea that saw us replacing two batteries with one, which meant half the weight and double the capacity. It provided consistent power,” Treanor says.

Wheelchairs driven by MagEfekt’s batteries are undergoing tests and trials.

The partners say their lithium iron phosphate (LiFePO4) battery is “the most energy dense” of its type in the world … as far as we can determine”.

Relatively small cylindrical steel-cased lithium cells form the heart of the battery developed under the Tardis Battery brand.

These small Chinese-manufactured battery cells are linked together within a moulded

6 | BusinessTimes Frankston / Mornington Peninsula / Dandenong | Winter 2016

urethane casing.

They are connected with wiring, eliminating the need for terminals and can operate under extreme conditions (45 degrees to minus 80) and are waterproof.

Coulthard says MagEfekt’s biggest intellectual property is how the small, individual cells are integrated in the urethane casing. “The result is a cool, light, long-lasting and safe to use battery.”

Coupled with solar panels they can operate free of the grid, either at remote locations or in combination with the grid for domestic and industrial purposes.

“Solar systems on houses are virtually donating power to the grid,” Coulthard says.

“It’s a dilemma for people coming off contracts [with power suppliers]. Do they connect to a smart system or go hybrid and retrofit an existing system?”

Treanor says MagEfekt’s system requires no changes to existing solar panel infrastructure: “It’s almost like installing a new appliance.”

He said power could still be sold back into the grid once the batteries are fully charged.

“This battery storage system can be added to houses to provide uninterrupted power and the daily usage can be tracked by computer.”

While the lithium batteries are more than double the cost of conventional lead acid batteries their service life (10-15 years) is much longer and the partners believe the MagEfekt system will pay for itself in about seven years.

Keith Platt www.magefekt.com | Details on page 10

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Winter 2016 | Frankston / Mornington Peninsula / Dandenong | BusinessTimes | 7

BUSY BITES

Advertising pays NewsMediaWorks (formerly The Newspaper Works) has joined Standard Media Index (SMI) to improve commercial transparency for media advertisers and investors.

Chairman Michael Miller said the changes “reasserts the leadership of the news media sector with its breadth of audience and unique, influential content”.

He said the new quarterly News Media Index (NMI) would show all print and digital revenue, as well as whole-of-industry revenue.

In its first release, the index states Australia’s news media sector accounted for $2.4 billion in advertising revenue in 2015.

Miller said said the figures showed “the healthy viability of the news media industry” and that the news media sector “has been significantly undervalued by independent analysts”.

The revenue data is taken from NewsMediaWorks’ foundation members, News Corp Australia, Fairfax Media, West Australian Newspapers and APN News & Media, who represent approximately 90 per cent of the news media sector.

State’s China Strategy The Victorian Chamber of Commerce and Industry has welcomed the release of the state government’s China strategy, Partnerships for Prosperity.

The chamber called for the development of a new international engagement strategy that aligns Victoria’s strengths with opportunities in high growth countries in its 2016-17 state budget submission.

Chamber CEO Mark Stone said the strategy is a good example of how Victoria’s sectoral strengths can be aligned with China’s needs.

“It includes not only targets for trade, investment and jobs growth, but practical steps to establish new engagement platforms, attract new investment and build connections through reciprocal cultural partnerships.

“It is encouraging to see the government supporting businesses to become more internationally competitive and forge new business opportunities in the fast growing Asia region.”

Mr Stone said $66 million in the budget for the Victorian Government Business Office network will help connect businesses with other trading partners in the region as well as in Europe and the US.

NEW CEO FOR SIMOCO

The top 10 companies in the Tech Pioneers 50 list: 1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

Brett McInnes, pictured, has been appointed CEO of radio communications supplier Scoreby-based Simoco Australasia.

McInnes, who has more than 20 years of experience working at CEO and director level, was previously with unified communications distributors Samsung Communications and CommsPlus Distribution.

Based at the company’s Melbourne headquarters, he will oversee the next phase of business growth, management, sales and marketing, as well as national and multinational product management and development.

The appointment follows the recent launch of Simoco Pulse, a new digital mobile radio that enables organisations to manage and control smart grids and networks across large areas.

“It is an exciting time in the radio and telecoms industries and Simoco Group, with its record of delivering innovative communication technology, is ideally placed to capitalise on this in the Australasia region,” McInnes said.

He predicted Simco’s “exciting technology” would see it “continue to be at the forefront of delivering robust and reliable solutions to customers”.

PIONEERS’ LIST Software developer Atlassian has come out on top of a list of 50 of the leading “innovators, disrupters, revolutionaries and game changers” in Australia and New Zealand.

The inaugural Tech Pioneers 50 report was prepared by venture capital firm H2 Ventures, supported by financier and asset manager, Investec Australia.

The report includes companies that are using technology to their best advantage “and driving disruption”.

8 | BusinessTimes Frankston / Mornington Peninsula / Dandenong | Winter 2016

Atlassian (NSW) Xero (New Zealand) Envato (Vic) Campaign Monitor (NSW) Canva (NSW) OFX (NSW) Freelancer (NSW) Vend (New Zealand) Invoice2go (NSW) Wise Tech Global (NSW)

H2 Ventures partner Ben Heap said companies on this list are at the “leading edge of the ideas boom and the drivers of the economy of the future”.

Selection criteria for the list included capital raised, rate of capital raising, geographic and sector diversity, consumer and marketplace traction and the X-factor: degree of product, service and business model innovation.

The full report can be found at www.techpioneers.com.au

Low-cost destination Bangkok is being hailed as the best city for Australians to visit on a $5000 budget.

With short term getaways increasing 4.6 per cent in the past 12 months, RateCity.com.au set out to find the cheapest of the 11 most popular destinations.

Research by the financial comparison website showed a couple flying from Sydney to the Thai capital could stay 15 nights calculated on an average four star accommodation price and $100 spending money a day with flights included.

Bali came second with a couple being able to stay for 14 nights for under $5000. Delhi and Singapore were third and fourth with 13 nights and 11 nights respectively.

London and New York were in the bottom three destinations with $5000 buying a couple only five nights in both cities.

Cancun was the least affordable, with $5000 buying four nights in the Chinese resort town.

“The most important factors in booking a cost effective holiday are planning well in advance and avoiding peak seasons when flights and accommodation can become very costly,” RateCity.com.au money editor Sally Tindall said.

Organising travel money before leaving Australia could save ATM withdrawals (up to $5) and up to three per cent in currency conversion fees.

“Last year Aussies paid an estimated $535 million in currency conversion fees overseas.

To avoid adding to this figure always travel with an appropriate credit, debit or travel money card that is designed for overseas use.”

Tradies make it rich After yelling at the sky and banging your head against the wall when confronted by a broken water pipe, or worse, there’s not much else to do than holler for a plumber.

This cul de sac of DIY is reflected in the latest tradie rich list, which sees plumbers in top place, $87.67 an hour in Western Australia and a bargain in fourth place at $77.03 an hour in Victoria.

ServiceSeeking.com.au’s tradie rich list compiles the average hourly rates from 52,000 quotes for different trades and services around Australia.

In 2016, the entry mark onto the top 10 tradie rich list was $68.58 an hour, down 7.6% year on year.

Even the WA plumbers on nearly $90 an our have tumbled 9.5% since last year.

Across all industries, the average tradesmen earns $60.88 an hour, up 0.3% on last year.

“Set up your business in an area where there is lots of construction and you’ll obviously drive up your earnings,” ServiceSeeking’s CEO Jeremy Levitt said.

Tradies’ hourly Tradies hourly rate

rates

WA

Plumbers

$87.67

WA

Electricians $87.33

NSW Builders

$77.8

NSW Plumbers

$77.42

Vic

Plumbers

$77.03

Qld

Electricians $75.23

WA

Builders

Qld

Landscapers $70.57

Vic

Electricans

$68.68

Qld

14 Plumbers

$68.58

$71.52

Workers’ free time HR and recruitment firm Randstad says its “employer branding research, shows up to $71.2 billion worth of unpaid hours are being worked

by Australian full-time employees each year.

Research results released in May also found: • Full time employees work an average 42.25 hours a week – 4.25 more hours than the contracted 38-hour work week.

• Part time workers work on average 25 hours a week, one hour above the average contract.

• A third (34%) of Australian workers intending to change employers, cite work-life balance issues as a factor in their decision.

• Almost two thirds (62%) cite good work life balance as the top reason to stay with their employer.

“On the surface, employers may see the additional hours staff are putting into their job as a positive indicator they are engaged and invested in producing the best work possible.

But the reality is, the benefit of any increased output comes at the expense of workers’ personal time,” Frank Ribuot, Randstad CEO Australia and New Zealand said.

Employers in Australia score strongly for factors like financial health, strong management and good training programs – however businesses still have a way to go when it comes to good work-life balance, which came in at ninth place.

Ranking universities Australia has come fourth in a list of nations “providing best environment for university success”. Higher education analysts QS Quacquarelli Symonds placed The United States first, followed by the United Kingdon, and Germany before Australia.

Following Australia were Canada, France, Netherlands, China, South Korea and japan.

The only Latin American nation in the top 20 was Argentina, which came 18th. The best performing African nation was South Africa (30th).

Factors used to rank higher education systems were performance; access; the global performance of a nation’s top institution; and the quality of a country’s economic environment for its higher education institutions.

Australia’s strongest performance was its access indicator, which was second worldwide with a score of 98.6. Its economic performance (seventh worldwide) is its weakest.

Cost of a bad hire Recruitment specialist Robert Half Asia Pacific says 65% of Australian HR managers have hired a new employee who failed to meet expectations while 55% of them cite lost productivity as the greatest impact of a bad hire.

Robert Half says 10% of employee turnover is the result of poor hiring decisions.

Robert Half’s senior managing director David Jones says every hire “should demonstrate measurable results towards the company’s development and strategic goals”.

“In today’s market, businesses are time-poor and the stakes for skilled talent are high, especially when hiring the wrong talent can cost a business time, money, and damage its corporate brand,” Jones said.

“The earlier the wrong candidate is identified, the more likely appropriate measures can be taken. The idea of letting an employee go is usually the first reaction, but it should actually be considered as the last option in order to keep the costs and losses already incurred as low as possible.

“Offering additional support, spending more time on the onboarding process or assigning a new or different role are more viable options that should be considered first.”

Other effects of hiring the wrong person included reducing staff morale as well as “significant financial costs”, including salary, training and finding a replacement.

A Robert Half checklist to help companies avoid bad hiring decision warns against using standardised job descriptions; thinking the internet has all the answers; offering too low a salary; and failing to differentiate between “must-have and nice-tohave candidate attributes”.

Pitching for pay Business coach Terri Billington says workers who want a pay rise need to be proactive and make a pitch that convinces their boss it’s a no brainer.

“A pay pitch is a three-month plan the employee comes up with stating how much money they want to earn and detailing how they will increase their worth to the company in that time frame,” Billington says. “The biggest mistake staff make is asking their bosses for more money, but not spelling out how much they want, why they deserve it or when they want it.”

She says the desire for a pay increase is too often “driven by colleagues receiving one or simply friends earning more money than them despite being in a different career”.

Winter 2016 | Frankston / Mornington Peninsula / Dandenong BusinessTimes | 9

COUNCIL RATES

Cutting council cloth to fit rate capping Greater Dandenong Council has warned that it will have a revenue shortfall of $16.28 million over the next five years because of the state government’s 2.5% cap on rate increases.

In his executive summary to the 2016/17 CEO John Bennie says the rate capping will have a detrimental effect on council’s future ability to provide community services and facilities, leaving the current level of operational services vulnerable to change.

“The challenge will require council to fundamentally review the sustainability of its operations as the outcomes will have implications in future years,” Mr Bennie states.

To overcome the predicted $16.28m shortfall council will need to either reduce net operational costs (“which will have service implications”) or by cutting finance

for capital projects.

Based on its draft budget council will raise just under $108m in rates in the coming year, a rise of 2.5%, or less than half the rise outlined in its long term financial strategy.

Mr Bennie said the strategy’s anticipated 5.5% increase in rate revenue “was split on the basis that approximately 4.50 per cent was required to fund the ongoing increases in council operational costs (year on year) with the balance being directed to an increased ability to fund capital expenditure”.

To achieve its curtailed aims, council wants to increase its general rate by 2.1%, its commercial rate by 2.4%, industrial 2.5% and vacant residential land by 26% and reduce the farm rate by 14.1%.

The budget also proposes a $15 increase

names badges | labels | plaques | awards

10 | BusinessTimes Frankston / Mornington Peninsula / Dandenong | Winter 2016

in the annual waste charge and spend $348,000 on a 12-month trial of a dumped rubbish hot spot collection program, rural roadside surveillance cameras and two household (hard waste) drop-off collection days.

Mr Bennie says $3m has already been saved through “budget reductions, combined with healthy supplementary rate growth”.

Mr Bennie said it was coincidental that the rate capping came in a property revaluation year, which saw residential properties on average increasing by 10.2% and vacant residential increasing by 16.5%.

“It is important for residents to understand that these two matters are quite independent of each other and that rate capping is applied to the average municipal rates and not to each individual property”.

MARKETING MINDS

Location, location, location If your business is like most, it will have a finite geographic target area from where the majority of you business is done. I know, we all like to think that the world is available to us, so why limit your vision to one location. Working on your website’s content to target a few local areas can give you the SEO edge over the competition and push you up that golden Google ladder.

Location 1: A good place to start is in your own backyard, so make sure that your business is on Google maps. Firstly you will need to have a Google account, so once you set one up, go into your account and spend some time filling out the online form. It’s very important to use the kind of keywords that prospective leads would use to find your business and services on a Google search and remember to think like a customer when deciding on keywords.

This SEO tip works very well because in a local search (i.e. Web Design Boronia) Google uses it’s map feature to list all the local services in that area. This can lift you above all the competition without spending one single adword dollar.

You should also ask happy customers to leave feedback on the review page. This will push your listing higher within the location listings.

Location 2: Geotags. This has been around for a few years now and the return results are positive. It seems to work in the same way as Google maps, by giving search engines your global position. You should get better organic rankings for localised search requests. The theory being that a search for ‘web design’ by someone located in Boronia, will show the same kind of results as ‘web design boronia’.

Location 3: Putting a location within a webpage heading is an easy, yet very effective way to tell Google and potential customers that the information on a page is relevant to their local search. As an example: if I want to sell more ‘Widgets‘ to customers in ‘Mornington‘ then you would firstly add content to the page that refers to Widgets in Mornington and then name the page something like ‘Widgets for all your widget needs in Mornington’.

Now when someone in Mornington searches for local widget or Widgets Mornington, your page before your competitors ‘Widgets in Victoria’ page.

Google is like a monster oil tanker that takes a very long time to change direction, so don’t expect instant results. You should take a snapshot of where you are on Google today. Test and measure times can be as long as six weeks to take effect.

Andy Warrington

Web Design & Marketing Andy runs Fuel Studio, a creative print, web design & marketing business. fuelstudio.com.au Send questions to andy@fuelstudio.com.au

ATO website win If you incur expenses creating or maintaining a website for your business, you may be able to claim the costs as a deduction. If you’re a small business with an aggregated turnover of less than $2 million, you can choose to use the simplified depreciation rules. If you do this and your cost is: • less than the instant asset write-off threshold – you can claim a deduction for the full amount in the income year you incur the expense • equal to or more than the instant asset write-off threshold – you allocate the cost to a general small business pool.

You cannot use the simplified depreciation rules if you’ve chosen to allocate expenditure on your software to a software development pool. If the simplified depreciation rules do not apply, website costs have an effective life of five years if you incur them on or after 1 July 2015.

In this case, if your expense is: • for in-house software – use the prime cost method to deduct the cost each year • included in a software development pool – deduct the different proportions of the expense each year.

Ongoing running and maintenance costs You can also claim an outright deduction for some ongoing expenses associated with running and maintaining your website in the income year the expense is incurred.

Some examples include domain name registration fees and server hosting costs.

Sourced from the ATO website 03/05/2016 www.ato.gov.au | Quick Link: mope.in/ATO

Winter 2016 | Frankston / Mornington Peninsula / Dandenong BusinessTimes | 11

COVER STORY: CLAIRE HALLIDAY

Mum’s the word for this bestseller

By Keith Platt

On the face of it’s a no-brainer: write about something that everyone has in common and it’ll be a best seller. But when it comes to the real thing, writing about our mothers is not so straightforward.

Author Claire Halliday was casting around for ideas as a follow-up to her previous three non-fiction books when she thought about major influences on our lives.

Mothers.

“For everyone, that critical relationship – whether it is positive and loving, or scarred with bitterness – leaves a huge impression,” Halliday has written.

She also wonders about the effect she has on her own children.

“Do we as mothers do things properly? What is the impact of a mother’s role on defining the child, shaping the person?”

Her publisher thought it a good idea and so Halliday set about choosing and approaching people with diverse backgrounds and professions who, in the main, already had a public profile.

Of course she too would write about her upbringing and the

person she believed responsible for the type of person she had turned out to be.

Now mother of four, Halliday was adopted out as a baby and was only able to meet her birth mother after some digging. As it turned out, that woman still not want Halliday as part of her life, the complete opposite to the “mother” Halliday grew up with.

Halliday’s autobiographical chapter in the book covers her two mothers and two fathers, who are now both deceased.

Her biological father was pleased to eventually meet her and his daughter has since become close friends with Halliday. “He welcomed me and really wanted to know me and felt guilty by my being adopted out. Halliday said her biological father was in love with her mother and would have married “but she was 19 and didn’t want a husband and to be tied down”.

“As a mother I’ve always wondered if I’ve been doing things properly; it’s an important role,” Halliday tells BusinessTimes.

The search for her own biological mother was made because she’s always been interested in “nurture versus nature” and

12 | BusinessTimes| Frankston / Mornington Peninsula / Dandenong | Winter 2016

whether she had things in common with her birth mother.

“It was not a happy ending,” Halliday says. “We met once and she made it clear she didn’t want the connection. It was heartbreaking at the time.

“She’s married and had three other daughters since and never told them about me. It was a family secret, tucked away” Halliday found the meeting confronting and weird. She faced a stranger. “I had to come to terms with the fact that I looked like her but hope that I’m not like her. She is a hard woman who has taken a hard line on things. I hope I’m kinder and nicer than what I perceive her to be.”

But writing a book for a publisher (“deadlines are a great incentive”) is, however cathartic, a business decision.

Halliday had a subject that was common, if not near and dear, to everyone.

And making a list of publicly recognisable names for Things My Mother Taught Me wasn’t too hard, although contacting them and fitting a lengthy interview into their busy schedules took some arranging.

“I wanted people with a profile who the public might want to know more about. I got a good mix.

“They’re really complex stories and some of them had challenging, dysfunctional childhoods but, in all of them, mothers were defining their relationships.”

Halliday’s approach to work involved the interview (“the key to it all was to hold their trust and get something new”), transcribing tapes and then writing.

Once completed, she offered to show her words to each of her subjects “to check facts. After all, they were sharing their stories and doing me a favour. I wanted them to be comfortable with what they were saying about their mothers.

“There were very few changes and just minor edits. Comedian Greg Fleet (who has written his own memoir, These Things Happen) was very happy not to have a look – he had so much trust in me and I found that fantastic.”

Another chapter deals with the sacrifices made by a mother of seven brothers in rural China during the years of Chairman Mao. Li Cunxin was the child she sent away in the hope he would achieve a better life. Halliday says that sacrifice made by Li’s mother to send him to the Beijing Dance Academy set her son on a road to fame and Australia (he is currently artistic director of the Queensland ballet company). Her wish that he would be

successful was fulfilled and Halliday says he was eventually able to house his siblings but, sadly, had to edit his story just before printing to make all references to his mother in the past tense as she had died before publication.

Also among the 19 willing to share their stories about relationships with their mothers are Naomi Simson, Geraldine Cox, Benjamin Law, Shaynna Blaze, Tiriel Mora, Tracy Bartram, Miguel Maestre, Adriano Zumbo, Fiona Patten, Graeme Simsion, Paul Vasileff (Paolo Sebastian), Napoleon Perdis, Lynn Gilmartin, Jaqueline Pascarl, Kathy Lette, Robin Bowles and Lawrence Mooney.

Halliday says no two accounts are the same and the only common denominator she can find among the many stories about mothers is that children feel most secure and happy “when mums are loved by their dads – honoured and loved”.

Once written and printed, the next phase of the exercise saw Halliday propelled into the limelight as part of a marketing plan.

Publishing just one month out from Mother’s Day ensured Things My Mother Taught Me would be promoted by bookshops as a worthy present and also give the media something to feature as a lead-in to that day.

Subsequent radio, television and press interviews, book launches and personal appearances with Halliday all combined to lift the book’s profile, and sales.

“I enjoy the marketing side of things. We’ve had the best results this time … everybody has a mum.”

And her next book? Fathers of course, scheduled to be out just before Father’s Day next year.

“I just signed a contract for Things My Father Taught Me,” Halliday says.

Having had two fathers she has plenty of material with which to begin a chapter, even before compiling a list of interview subjects.

There is a Claire Halliday website through which the book can be bought ($29.95 printed edition and $9.99 e-book). www.clairehalliday.com.au

Winter 2016 | Frankston / Mornington Peninsula / Dandenong BusinessTimes | 13

TECHNOLOGY

Technological threat to ‘human touch’ Human resources and recruitment company, Randstad says its Workmonitor research shows a decline in face-to-face interaction in the workplace.

Although 88% of Australian workers say face-to-face meetings are the best way to interact, almost two thirds blame technology for making this harder to achieve.

This is a figure much higher than the global average of 46% and 57% in New Zealand. The Randstad research shows 65% of Australian workers feel society is becoming less compassionate due to the growing use of technology.

While the impacts of technology – positive and negative - vary across roles, sectors and regions Randstad’s findings reveal a key area of change feared is communication and, more specifically, the manner in which they interact with colleagues, clients and customers.

“Technology is undoubtedly having an increasing impact on the way we live, work and play. In the workplace, it forces us to ask the question each day of how, where and when to connect with people,” Randstad CEO Australia and New Zealand Frank Ribuot said.

“It would be more time efficient to conference call a client than travel to their office for a face-to-face meeting. And perhaps it’s quicker to email a colleague than stop by their desk for a conversation.

But are these interactions as effective as they could be? Would a more meaningful connection and better rapport be established in person?”

Ribuot said a “pleasant working atmosphere” was the second most important factor for people when choosing to work for an employer in 2016.

He said it was important for leaders to ensure digitisation “doesn’t lead to the

14 | BusinessTimes Frankston / Mornington Peninsula / Dandenong | Winter 2016

death of the human touch in Australian offices”.

“Explaining the motivation for adoption of a new piece of technology and providing upfront training so that staff can make the most of the opportunity, needs to become a priority. Even if your company has adopted software specifically related to communication, such as Skype for Business, it’s vital that company policies still promote regular face-to-face interaction with colleagues and customers.

“It is a matter of finding the right balance between ‘tech’ and ‘touch’ in the workplace. Adopt technologies which will allow the business to become more efficient, deliver a better product or service faster or with a lower return on investment. My advice would be not to let those technologies come at the expense of real life, in person, face-to-face interactions.”

Winter 2016 | Frankston / Mornington Peninsula / Dandenong BusinessTimes | 15

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CONTRIBUTIONS

Advantages of a serviced office Deciding to start or grow a business can be a daunting prospect for entrepreneurs.

There are big and often difficult decisions that need to be made, but choosing the right office for your business doesn’t need to be one of them.

A serviced office is the perfect solution for your start up or small business. It can provide your company with a flexible, low cost and most importantly, a stress free opportunity to set up your office without having to worry about long term commitments or the many overheads that come with more traditional commercial office space.

Signing up with the right serviced office provider for your business also gives you peace of mind that you have the ongoing support you need to turn your business into a success.

The benefits of a serviced office include: Ease of getting started Unlike traditional commercial space, most serviced offices are set up and ready to go. With many costly items such as furniture, rent, electricity and cleaning combined into one monthly bill, most serviced office providers allow you to move in and plug in on the same day. All serviced office providers will also be able to offer IT and telco solutions as well as other business support services, meaning you don’t have to spend time trying to find your own.

Flexible terms Serviced offices allow you the flexibility to sign up for short term periods and many also offer the opportunity to upgrade as your business expands. Which means that as your staffing requirements grow, so too can your office without any extra charges incurred.

First impressions count A serviced office will also give your business the opportunity to cost effectively present a professional and reputable image to your clients. With a reception team to meet and greet your clients and provide professional phone answering, secretarial services and boardrooms for hire, you are able to impress clients while also saving on staff and equipment overheads.

Work/life balance Juggling work and personal life can often be a hard task but choosing a serviced office with the right support and also in the right location can make this much easier. A serviced office close to home removes the lengthy commuting delays, freeing up time to create a stronger work/life balance and giving you more opportunity to focus on yourself and your family. Dedicated on-site serviced office staff are also there to help you run your business when you’re out of the office, to ensure no business opportunities are missed and you can focus on what’s in front of you instead of worrying about work you’re missing.

Networking opportunities One of the greatest benefits that will come from being in a serviced office will be the business relationships you form with those in the offices around you.

With many other small and like minded businesses in such close proximity you will have the ability to network with other companies and the opportunity to collaborate and bounce ideas off each other.

Myf Plunkett, business manager for Asian Pacific serviced offices at Peninsula on the Bay, Frankston

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Bedding in at Carrum Downs Salta Properties has agreed to a 10-year lease with bedding company Tempur Australia, for a new centre in Colemans Rd, Carrum Downs.

“Tempur was attracted to the site as it offered main road exposure with significant signage opportunities to Eastlink,” Nichols Crowder leasing agent Michael Crowder crowder said. “The site provides room for further expansion and it is sprinklered throughout.”

The property includes a 4650 square metre building and hardstand areas is expected to be the new Australian head office for the global bedding manufacturer whose brands include Sealy, Optimum and Stearns & Foster.

Crowder says the industrial precinct at Carrum Downs continues to expand as it benefits from its location near major road links, including the Eastlink toll road and Peninsula Link.

Michael Crowder Director, Nichols Crowder Property Solutions, 1 Colemans Rd Carrum Downs, call 9775 1535.

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Call Marg on 0414 773 153. Email marg@businesstimes.net.au Winter 2016 | Frankston / Mornington Peninsula / Dandenong BusinessTimes | 17

HEALTH

Momentum leads the way This already interminable federal election campaign has had an air of inevitability about it, don’t you think? I don’t mean the way the cliched scare campaigns that once spooked us on immigration, industrial relations or the economy are routinely trotted out. I mean how despite his personal popularity Malcolm Turnbull’s star has been inexorably sinking while charisma challenged Labor leader Bill Shorten’s is somehow rising.

What’s going on?

The trend as I write this (early May) is such that barring some self-inflicted catastrophe – or maybe the outbreak of war – the Labor Party will win the July poll. And why? Because of momentum.

Now I’m no political expert and normally don’t stray far from health topics, unless it’s football or surfing, but right now I get the feeling we’re in for another change of government.

The campaign so far has been marked by skirmishes on negative gearing, asylum seekers and climate change. It’s as though it’s been in the grips of the same negative momentum that brought down Julia Gillard less than three years ago, and John Howard before that.

Recently I met a former Labor staffer who described the frustration of being caught up in the fog of negativity surrounding Gillard throughout the 2013 campaign.

“It was so frustrating,” he recalled. “No matter what we tried we just knew we were goners. You still throw everything at it, but it didn’t matter what we did, or whether Tony Abbott had tripped up, the electorate was just set on getting rid of Julia. We just couldn’t break his momentum.”

One could argue, in fact, that Abbott’s ultimate downfall was his failure to recognise this himself. There was absolutely no need to over-promise on the economy as he did. He was not punished at the ballot box for his “no cuts, no extra taxes, no deficit” declaration – his momentum took care of that – but once the political mood changed, as it inevitably does, he was quickly hoist on that petard.

Another example of positive momentum in politics is Donald Trump. He could say just about anything now and it would not matter; he had the Republican nomination nailed a long way out.

Michael Ellis*

Chinese Herbalist

Here, every poll since Christmas has been worse for Prime Minister Turnbull and better for Labor. The momentum of this contest is set.

Momentum is the driving force behind every competitive pursuit – not only politics but sport and business too. It may sound like just a fancy way of describing who’s winning and losing, but it goes to the psychology of competitive behaviour.

In a contest, momentum is not a quality that both sides have in store that can be produced at will, like skill, fitness, courage or willpower. No, the momentum belongs to the contest. It’s more like a tide that flows one way or the other. Everyone involved with the contest, from participants to impartial observers, can sense it and is influenced by it.

It has two poles: positive and negative.

The more one team is experiencing positive momentum (the “run-on” in football parlance), the further into negative momentum their opponents will be.

It is actually a perfect example of the yin-yang principle – and this is my one tenuous link to Chinese medicine in this entire article – which symbolises the universal reality that seeming opposites are actually two faces of the one thing – like day and night – that both poles contain the seed of the other, and upon reaching their peak begin to transform back into the other.

That’s how it is with momentum.

Scientific research shows that sportsmen enjoying positive momentum feel energised, and full of belief in themselves as scoring seems suddenly effortless and they bask in the joy of impending success.

Their opponents, meanwhile, are suffering

18 | BusinessTimes Frankston / Mornington Peninsula / Dandenong | Winter 2016

the direct opposite; in their desperation to avoid defeat they make skill errors, team cohesion falls apart as individuals resort to increasingly unlikely plays, and once victory becomes remote they are drained of belief and physically spent.

In business, a friend runs a publishing company that produces adult colouring books (it’s a thing, in case you hadn’t noticed). The business is going gangbusters.

“Momentum is massive in business,” he says. “We’re riding our momentum at the moment. It’s amazing how it works – sales are going great, the staff are happy, deals fall into place, the market embraces you – all those things suddenly seem to click.

You’ve got to make the most of it though, because in a competitive market we know it won’t last forever.”

Last year chairman Leigh Clifford attributed Qantas’s turnaround in profitability not to clever maneuvering on fuel prices but to “positive momentum” at the airline. (It’s a desirable quality in an airplane too, just quietly.)

Football commentators are calling the momentum. Everyone’s talking about it – players, coaches, media. As Geelong coach Chris Scott put it recently, “Momentum is very real.”

Two years ago the Cats champ Jimmy Bartel told Inside Football magazine that the key to maintaining a run-on was to focus on your skills – to stay error free, because one sloppy kick, a careless missed shot, or slipped tackle could trigger a change in the momentum.

This is where Bill Shorten has been for the past month: maintaining skills and discipline, while not overplaying his hand, allowing the tide of momentum to do its work.

His opponents have been in the opposite place, their skills frayed and teamwork unravelling (think Sophie Mirabella, Abbott and the right wing), increasingly strident and desperate in their efforts to stay in the game. Their biggest challenge will be to maintain cohesion and discipline in the face of continuing negative momentum. It’s got all the ingredients of another electoral train wreck. We’ll see if I’m right, but I reckon the force is against them. *Michael Ellis is a registered Chinese herbalist in Mt Eliza. Visit www.mtelizaherbal.com

MARKETS

Investing in chilly waters Contrary to myth frogs do jump out of hot water before being boiled alive, but the evidence is less clear when the temperature falls. With investors it’s much the same: often they’re reluctant sellers in booms and even more so in queer market’s like today’s when prices are warm to hot, but background economies are cooling and held aloft by artificial means.

This world of zero rates and ever more stimulus is not how it’s supposed to be.

At the beginning of the decade expectations of growth in China and India were high. We were often told “three hundred million Chinese were moving to the cities”; “the Indian middle class would soon be in hundreds of millions”. This demand would drive the global economy forward at 3-4% a year. The US and Europe would recover, spurred by low rates and abundant liquidity. Japan, in a 20-year chill, would break out of its funk as rates went below zero.

Six years later China’s imports and exports are falling and its debt is rising rapidly. A period of corporate defaults has begun. China’s banks – part commercial, part party policy directed – are now lending so their clients can pay interest.

Bank bad debt may be as high as 20%.

As the “world’s factory” slows, the world slows too.

To reverse this chill the central banks have pressed down hard on rates to the point that now a third of all government securities globally trade below zero yield.

About $6 trillion in bonds – held by banks, endowment funds, insurers and retirees now costs 0.1-2%. Our own interest rates are still positive, but some are suggesting that our rates will sink to zero.

Richard Campbell* Stock Analyst

CEOs are not being adventurous and the banks which dominate the ASX are lowering expectations as lending rules tighten, margins are squeezed and funding costs rise.

In theory ultra low rates should be a blowtorch for growth. Who would not borrow if money cost almost nothing? It turns out that it’s not that simple. Global corporations have borrowed, but mostly not for expansion and new jobs. They reason that if economic growth is weak their investment risk rises. In a period of weak demand mistakes will be more glaring so best to cut staff and other operating costs, investment in robots, IT costs and off-shoring and stick with what they know. This is why US corporate is the highest in 12 years at $29 trillion almost twice US GDP. It is similar here. CEOs are not being adventurous and the banks which dominate the ASX are lowering expectations as lending rules tighten, margins are squeezed and funding costs rise. In the half year result ANZ cut both the interim dividend and the future payout ratio. Bad debt may be low now but, as the weak sectors of the economy contract, non-performing loans among the $1.1 trillion in housing debt will inevitably grow.

Whether the housing bubble subsides gently or sharply, the growth of mortgage lending of recent years will slow.

Does this mean investors should sell the banks as their profitability gradually deflates? Yes and no. Cheap money means cash is abundant. Opportunists can borrow very cheaply so where there are pockets of specific growth small fortunes have been made. For example, the “China stocks” Blackmores and Bellamys were six and 10-fold gainers. Likewise, lithium stocks are lifting on the belief that the lithium battery market will soar. Graphite is similar. But caution is required. China can turn off the tap quickly while lithium and graphite supply could quickly turn to glut.

A more calibrated approach is possible.

Although it is highly likely that bank dividends will decline and bank share prices slowly deflate, the choice may not be either/or. Small investments in true growth companies may compensate.

This is not for everyone as it requires study and application, but the GFC has thrown up another anomaly: a brace of new technology companies which have survived lean years.

Eden Energy with its revolutionary cement was 1.8 cents in August last year. It is now up 14 fold. The rate of growth will slow, but as it moves to first US commercialisation then global sales a further 10 fold gain is likely. Even that may be conservative. Cement essentially has not changed for 150 years. Now it has.

There are perhaps a dozen others is this category where R&D dates back 10-25 years and where the invention and effort have crossed the threshold from pilot plant or prototype to first contracts and potential for deep and sustained growth.

Obviously care is required. Claims can be overblown; enthusiasm and belief can be misplaced, but not always. Sometimes the world turns; sometimes a new gear is engaged. The world is changing a lot faster than many realise. A simple formula may help: first ask is this a real business, not just a hope of one and, second, invest small amounts cautiously as if they are big enough to hurt.

* Richard Campbell is Executive Director of Peninsula Capital Management, Tel. 0415687431. rcampbell@peninsulacapital.com.au

Winter 2016| Frankston / Mornington Peninsula / Dandenong BusinessTimes | 19

NETWORKING

Networkers have style Have you ever walked into a room full of people and thought, “How do I get business from this group?”. I am sure you have. As entrepreneurs we walk into rooms full of people all the time and we recognise these as ideal opportunities for generating business.

If you don’t know how to effectively gain referrals in these situations, the opportunity is lost. When you attend networking functions you are potentially walking into a room full of business. However, networking is more about “farming than it is about hunting”. This means you get to know the people that you want to build a professional relationship with.

With that in mind, how can you identify and react appropriately to the behavioural styles of others and have your behavioural style attract them to you rather than turn them off?

Here are the four main behavioural styles, complete with a short definition and description, followed by a short assessment of that networking style. As you get to know your networking partners better, you’ll be in a better position to understand how to work with them effectively.

Go-getter: A hustling, enterprising type of person.

Go-getters tend to be results-oriented, driven, fast-paced and impatient. They have a get it done now attitude. They attend networking events to gain new business and look to meet the most successful people at the event.

Go-getters believe in expedience and are not afraid to bend the rules. They figure it is easier to beg forgiveness than to ask permission. They are so focused that they can appear aloof. They are so driven that

Dr lvan Misner*

Networking specialist

they forget to take the time to smell the roses.

Promoter: An active supporter, someone who urges the adoption of, or attempts to sell or popularise someone or something.

Promoters tend to be very positive, friendly and happy go lucky type of people. They love to be on the go and are okay with having lots of irons in the fire.

They avoid confrontations and seek fun in everything they do. They attend networking events to hang out, meet new people, talk to their friends and make sure they are seen at the event.

Promoters would rather schmooze with clients over lunch than work on a proposal in the office. They are idea-people and dreamers who excel at getting others excited about their vision. They are risktakers who are not inclined to do their homework or check out information and base many of their decisions on intuition.

Nurturer: Someone who gives tender care and protection to a person or thing, especially to help it grow or develop.

Nurturers tend to be very patient, kind, caring and helpful people. They are great listeners and tend to enjoy things at a slower pace than the go-getters and pro-

20 | BusinessTimes Frankston / Mornington Peninsula / Dandenong |Winter 2016

moters. They do not like being pushed or rushed into things and appreciate quality time with people. They attend networking functions to connect with people they already know, meet a few down to earth people and focus on deepening their relationships.

Nurturers’ relaxed dispositions make them approachable and warm. They develop strong networks of people who are willing to be mutually supportive and reliable. They are excellent team players.

But they are risk-averse and may tolerate an unpleasant environment rather than risk a change.

Examiner: A person who inspects or analyses a person, place or thing in detail, while testing their knowledge or skill by asking questions.

Examiners tend to be very thorough, efficient, task-driven people. They seek information and knowledge and love to check things off their to do list. Because examiners need a lot of information, they tend to make decisions more slowly than the go-getters and promoters. They have a propensity towards perfectionism.

Examiners tend to be very good conversationalists as they know a lot about a lot of topics. They attend networking functions only to market their business and, once they achieve their goal for the evening, they usually leave the event as quickly as possible.

Examiners are always in control of their emotions (note the poker-faces of many Jeopardy! contestants) and may become uncomfortable around people who are less self-contained, such as being emotional and bubbly like promoters. They tend to see the serious, complex side of situations. Their intelligence and natural wit, however, gives them unique, quick and off-the-wall senses of humor.

Once you start to understand these four different behavioural styles, it can actually become easy to identify someone, adapt to their style, help them feel comfortable – and make them feel good at the same time. Understanding this as a starting point will allow you to begin to develop a stronger working relationship with potential networking partners. *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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MANAGEMENT

Managing succession Leaders come and leaders go, often with monotonous regularity, particularly in public companies and political organisations. In the public business world, the average tenure for a CEO is less than six years and in the political world, its much shorter as we all know. What can we learn from recent public upheavals than can be applied to our businesses?

The first lesson is that changing the leader is never easy and never without high emotions, because winners and losers are created.

The best succession processes can be designed to ensure that there are only winners. One of the best examples of this was when General Electric was looking for a replacement for Jack Welsh way back in 2000. GE has always been unusual with CEO succession and has only had nine CEOs in nearly 140 years.

The company seeks long-term leaders who can stand the test of time with key stakeholders. GE selected its three top candidates and publically announced they were being assessed to select Welsh’s successor. By the time GE made its decision to select the youngest candidate, Geoff Immelt, other companies had decided that the candidates that missed out were both great leaders that could be successful outside GE. Within days of GE’s announcement, the two unsuccessful candidates had been offered and accepted CEO roles with other major firms. While GE lost two high potential leaders, in real terms, there were no losers. Despite this great example, few boards of directors have learnt how to manage leadership succession well.

Major Australian companies struggle to find great leaders whether they select with leaders internally or externally.

For example, Telstra, BHP, Rio Tinto, Qantas and Woolworths have all had leaders who have left behind challenging legacies based on poor strategies, difficult financials and tough cultures. These examples provide many lessons, both positive and negative, that can be applied to increase the potential for long term success of new leaders and to reduce the downside risk of failure.

A key starting point is to understand exactly the process and accountability for selecting the new leader. It may be the owner or owner’s representative,

Hamish Petrie*

Business consultant

the board or an election by peers, as in the political context. The main thing is that the process is absolutely clear and transparent so that there are no surprises in the decision making process.

Many organisations struggle to make this a public process but it is clear that by making it transparent both internally and externally, the natural competition for the top job can be managed better.

Internally, your people will want to understand who is running for the top job and how they can help the decision makers understand their view of each candidate. Externally, shareholders, customers, suppliers and other stakeholders will want to sample the behaviour of each candidate and contribute to their assessments.

As the decision timeline approaches, the decision makers need to be listening to the feedback from all stakeholders so that they can be confident of an all-round assessment of current performance and the future potential performance in the new leadership role.

Managing the losers from a succession decision is often the true test of the organisation. There are many ways that negativity can flow from the losers if not managed optimally.

Sometimes, the GE solution is the best, where they move out of the business and accept a top position in another organisation.

Careful forethought by decision makers can result in special retention arrangements for all candidates during the evaluation period together with the removal of financial barriers that could make it harder for the losers to leave the organisation.

If the losers choose to stay in the business, careful attention needs to be

22 | BusinessTimes Frankston / Mornington Peninsula / Dandenong | Winter 2016

paid to their role and conditions so that they can be a positive force for the new leader even though they may be disappointed at missing the top job.

The scenario of the losers remaining in the business but making a negative contribution to the success of the new leader is one of the most challenging for everyone concerned. We have all witnessed this in the political context in the past few years and it is clear that this can have a destructive impact on an organisation when it is not managed well.

The diversity agenda has increased the complexity of succession planning for senior roles as it has often forced decision makers to include at least one candidate with a diverse background.

Diverse candidates are often higher risk as they are being accelerated through their development to try to achieve a better overall diversity outcome. Overall, these support systems should be available to all candidates even though they are most critical to diverse candidates.

Succession management is difficult to do, as it requires real forethought and planning by decision makers over a number of years. Too many companies look for external candidates to fill top positions, but this is usually a sign that they have failed over several years to find, select and develop high potential candidates.

A new top leader’s first job on day one should be to start the process to find their successor.

Action planning questions: • Does you business have clear account abilities to manage the succession process for senior roles?

• Does your business have a transparent succession process to evaluate candidates for your top position?

• Do you support all candidates so that the losers can also win?

• Do you provide support systems for your diverse candidates during evaluation processes?

*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

Port plans ‘decades away’ ANY prospect of a container port being developed at Hastings is likely to be decades away.

Mornington MP David Morris said this follows revelations that the state government has not asked Infrastructure Victoria to investigate the best site for Victoria’s next major port.

Soon after its election in November 2014 the incoming Labor government announced Infrastructure Victoria would assess site for the next port, including one at Bay West, north of Geelong in Port Phillip.

The government withdrew funding for the Port of Hastings Development Authority, causing the loss of many jobs and an end of studies necessary for a future port at Hastings. Mr Morris said the cuts “effectively gutted the authority”.

He said Ports Minister Luke Donellan had told the Public Accounts and Estimates Committee in May last year that the government would “seek independent advice from Infrastructure Victoria about Bay West as an alternative site to Hastings for Victoria’s second container port”.

“Twelve months on and Infrastructure

Victoria has spilt the beans that it has not looked at options for Hastings, Bay West, or indeed any other major project in the state,” Mr Morris said. “Donellan told the same hearing that ‘I would also like to see them [Port of Hastings] look at chasing down business in the energy sector, because the Latrobe Valley has enormous brown coal deposits…’

Not referring development of a container port to Infrastructure Victoria “means that not only might the development of a container port[at Hastings] be delayed for decades, there is a real risk that the port will be relegated to bulk status, reduced to handling the sort of cargo not acceptable to other ports”.

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When it comes to Industrial Real Estate, we’ll do the heavy lifting.