Business Plus March 2017 by EMA

ISSUE 145 MARCH 2017

Driverless vehicles in NZ Pioneering the transformation in transport P31

SHARING THE LOVE WITH STAFF

P14

INTEGRATING HEALTH AND SAFETY IN COMPANY STRATEGY P18 HOW THE INTERNET OF THINGS DRIVES THE WORLD

P22, 25

DESERVED RECOGNITION AWAITS: ENTER THE EXPORT AWARDS P29

…AND MUCH MORE!

EMA courses are very professional and well-structured. Jessica Sturgess, Health and Safety Coordinator Stryde Projects

Start 2017 right, book your business training with EMA. Visit ema.co.nz for more information

On the cover: BusinessPlus is published by The Employers and Manufacturers Association (Northern) Inc (EMA) EMA is the major shareholder of national lobby group, BusinessNZ. BusinessPlus will be attached to EMA’s fortnightly email newsletter, e-report, this year.

Some of the team at HMI Technologies set up to develop driverless vehicles, or “mobility as a service”. The first trial starts this month, with the smart shuttle bus pictured. Chief executive Stephen Matthews says pioneering the use of autonomous vehicles is a growth area for the transport solutions company.

Designer: Ripeka Mikaere

Driverless vehicles in NZ Pioneering the transformation in transport P31

SHARING THE LOVE WITH STAFF

Full story page 31 Editor: Mary MacKinven T +64-9-367 0939, M +21 636 089 E mary.mackinven@ema.co.nz

ISSUE 145 MARCH 2017

P14

INTEGRATING HEALTH AND SAFETY IN COMPANY STRATEGY P18 HOW THE INTERNET OF THINGS DRIVES THE WORLD

P22, 25

DESERVED RECOGNITION AWAITS: ENTER THE EXPORT AWARDS P29

…AND MUCH MORE!

Contents

Printer: MHP

Commentary

Distributor: Rocket Mail

EMA’s CEO Kim Campbell on: Electricity - who pays?

Time now to focus on the health in OH&S

Business progress towards a low emissions economy

BusinessNZ CEO Kirk Hope on: Bang for buck

Advertising sales: Colin Gestro, Affinity Ads, M + 27 256 8014 E colin@affinityads.com ISSN No. 1176-4953 EMA Head office – Auckland: 145 Khyber Pass Rd, Grafton, Auckland, NZ Private Bag 92066, Victoria St West, Auckland 1142. P +64 9 367 0900 E ema@ema.co.nz Hamilton: EMA/ExportNZ Waikato 103 Tristram Street, Hamilton. PO Box 490 Waikato Mail Centre, Hamilton 3240. P +64 7 839 2713 Tauranga: ExportNZ Bay of Plenty Smart Business Centre, 65 Chapel Street, Bay Central, Tauranga, 3110. PO Box 13202, Tauranga Central, Tauranga 3141. P +64 7 571 0600 AdviceLine: NZ 0800 300 362 AUS 1800 300 362 E advice@ema.co.nz Phone 8am-8pm weekdays for information about employment and more, plus referrals to EMA Legal lawyers and your local EMA consultant in employment relations and/or occupational health and safety. Visit www.ema.co.nz for owner and staff training programmes, conferences and other events, employer guides and templates, manufacturer services, media statements and submissions, export development and more EMA contacts Chief executive: Kim Campbell Membership manager: Kayne Franich External Relations manager: Val Hayes Advocacy & Industry Relations manager: Mark Champion Learning manager: David Foley Enterprises & Strategy manager: Mauro Barsi Industrial Relations & Safety manager: Paul Jarvie Finance & Technology manager: Paul Yeo Corporate & Building Services manager: Sheree Alcock ExportNZ manager: Catherine Lye

News: Service sector grows, manufacturing dips

Seen @ EMA training and other events in Auckland

Employment Remuneration: Sharing gains further motivates empowered teams

Privacy: Good privacy practices are good business practices

Case law: Stoush over Sunday text message Employment Chat – Q and A: Providing for feeding babies at work, people with disabilities and those who feel forced to resign Health and safety: Core part of company strategy

Learning: Are great salespeople made or born?

Healthy staff good for business too

In Business ICT: How the Internet of Things is transforming business

Marketing: Comparing branding with marketing

Property: Making cities work for business

Innovation: It’s time to make manufacturing sexy Logistics: Globalisation surpassed pre-crisis peak, advanced modestly in 2015

25 26

International Trade Transforming the future of healthcare

El Dorado calling

Time for exporters to share their success stories

Member Profiles HMI Technologies: Pioneering driverless vehicles in NZ

Summer Briefings 2017 schedule – Register now!

+ Inside BusinessPlus is free to EMA members

Training Plus insert detailing March training courses, and more BusinessPlus March 2017

Advocacy helping business succeed As an EMA member you are part of a 4000-plus business collective which employs more than 250,000 staff. This collective voice is extremely powerful. It allows the EMA Advocacy team to exert influence on your behalf and be your voice at the table to deliver a landscape which allows business to be more effective and successful. The team has honed its approach to advocacy and the key issues it will focus on. This ensures the teamâ&#x20AC;&#x2122;s efforts are used to shape the key decisions influencing your business environment. Advocacyâ&#x20AC;&#x2122;s key areas of focus Coping with the challenge of growth and development, in particular how this relates to infrastructure development, transport and the resource management system Addressing skills development, education and training Health and safety and all employment law related matters Export and trade opportunities for growth

CEO Commentary By Kim Campbell

Electricity – who pays? Aotearoa – the land of the long white cloud. While it’s a romantic description it also aptly depicts the infrastructure challenges we face. Our geography, comprised of long, narrow islands sprinkled with mountains, presents many transport and access headaches. So we built transport, electricity and telecommunications infrastructure to overcome our unique geography, and we smoothed the costs across our dispersed population. These realities have driven investment, no more so than in our taxpayerowned monopoly, Transpower, whose important job it is to deliver bulk electricity from wherever it is generated, to distribution hubs throughout the country. Transpower has invested in recent years to get power to where it’s needed, or where the system was weak. Remember the famous D-shackle incident in 2006, when Auckland lost power for several days? Partly as a result, hundreds of millions of dollars were spent on improving reliability and capacity for the upper North Island over the following six years. Up to the present day, we’ve had a very good system for paying for the service Transpower provides. Costs have been shared between consumers, who get electricity sent to their regions, and the big power companies, which have their “goods” delivered to those regional markets. People and businesses have made locational and investment decisions based on the idea that the current pricing formula would be adhered to. That’s all about to change if the Electricity Authority gets its way. They say the system is hopelessly “inefficient”, and the people who benefit from the grid aren’t paying enough.

Many households and businesses in New Zealand (outside of the upper North Island) could also see a small reduction in their bills. Punishment for distance from generators The Authority is proposing a very complex new pricing method that would require Transpower to try and predict the “benefits” of the grid for consumers and power companies, for 30 years into the future. Based on these forecasts, they’ll then have to work out what to start charging people today. And even if their predictions prove to be wrong, the charges won’t change through time. The resulting “fix” will see everyone in the upper North Island start paying more, and some of the big power companies less, to have their power delivered to you. And the Tiwai Point smelter in the South Island will also get a big annual discount, on the basis that they don’t benefit from that upper North Island investment. But it gets worse: instead of just changing how we pay for NEW transmission lines, they’re going to backdate all this to include everything that’s been built since 2004. How does this play out for consumers? The $59 million extra those in the Vector area would pay will hit average residential customers by about $74 extra each year. Small businesses would see their power bills go up $113 each year, other consumers such as schools an additional $1,200 and large electricity users like hospitals up to $17,000 extra every year. There are increases for every consumer in the Counties Power area, and across the whole of Northland too.

Then there’s the impact on your rates, as every Council facility in all these areas (from buildings to pumping stations) also gets charged more. On the other hand, the three big winners - Meridian Energy (which would pocket around $60m a year), Contact Energy ($16m a year) and Pacific Aluminium (over $15m) - will receive most of the money from this re-jigging. Many households and businesses in New Zealand (outside of the upper North Island) could also see a small reduction in their bills. And the result? The estimated net savings from all this disruption, over the very long term, are marginal and may not exceed $10m a year nationally, or may fail to achieve a net positive benefit at all. The Electricity Authority is expected to make a final decision in April – eight years after beginning its deliberations! There is no right of appeal. The current model is well regarded internationally and supported by experts, it works well and should remain. The Government says it can’t intervene, and the Authority says economic harm is not its brief. But someone in authority needs to put an end to this nonsense and demand a moratorium on the process until it’s been clearly determined that an overhaul is even required. Naturally, we have submitted accordingly on behalf of our members.

Kim Campbell is chief executive of the Employers and Manufacturers Association. Email kim.campbell@ema.co.nz BusinessPlus March 2017

Commentary By mark champion

Time now to focus on the health in OH&S About 1500 metres into a hillside on the West Coast of New Zealand, northeast of Greymouth, at 3.44pm on November 19, 2010, a methane explosion followed by a series of other blasts, took the lives of 29 miners.

The Government moved quickly: •

The work of the Department of Labour was transferred to the then-new Ministry of Business, Innovation and Employment (MBIE).

The tragedy has forever changed the lives of the families and communities of those miners, but as a result of those deaths there is now a legacy … the tragedy has also forever changed the landscape of occupational health and safety (OH&S) practice in New Zealand.

•

A dedicated inspectorate for high-hazard industries, mining and petroleum, was quickly established.

In the same month as the deaths of the 29, Prime Minister of the day, John Key, announced the Government would conduct a Royal Commission of Inquiry – a tool rarely used, but generally aimed at delivering fundamental change. The Commission’s final report was released nearly two years after the tragedy, in November 2012. It found the disaster was preventable, and whilst the report could not pinpoint the actual cause of a series of explosions, it slammed the mine’s management for not properly assessing health and safety risks its workforce was facing. And it highlighted the Department of Labour’s parlous record as the former regulators of health and safety in New Zealand. The lawyer representing the dead miners’ families said the tragedy was also a result of the failure in the way the legislation had been applied and a failure of the Department of Labour in its inspectorate role. The report found the mine’s board of directors ignored health and safety risks and should have closed the mine until they were properly managed.

BusinessPlus March 2017

Other recommendations from the Commission included: •

A new regulatory Crown agency be established with a chief executive and board to reflect that health and safety was a responsibility of employers, workers and government;

•

Establishment of an expert taskforce to create a regulatory framework for underground coal mining;

•

Collaboration between regulators to ensure health and safety was considered before permits were issued;

•

Crown Minerals regime changed to ensure that health and safety became an integral part of permit allocation and monitoring;

•

Statutory responsibility of company directors for health and safety in the workplace to be reviewed to better reflect their governance responsibilities;

•

An urgent review of emergency management in underground coalmines;

•

Requirement that underground coal mines have modern equipment for emergencies.

Fallout extends to all workplaces The next step in the change cycle was the establishment of the Independent Taskforce on Workplace Health and Safety in 2012, tasked with the evaluation of whether the workplace and safety system in New Zealand was fit for purpose, and to recommend practical strategies to reduce the high rate of workplace fatalities and serious injuries by 2020. After 10 months of consultation, analysis and research, the Taskforce delivered its report to the Minister of Labour, Hon Simon Bridges on 30 April 2013. The Taskforce report said there was no single critical factor behind New Zealand’s poor health and safety record. Rather, New Zealand’s workplace health and safety system had a number of significant weaknesses that needed to be addressed if New Zealand was to achieve a major step-change in workplace health and safety performance. In other words the system was broken and workers were dying as a result. A sea change was required, where a climate of collective responsibility needed to be developed between government, employers and workers. The goal was to reduce New Zealand’s workplace injury and death toll by 25 per cent by 2020, with the final vehicle for change being the passage of the Health and Safety at Work Act last year: The Act’s key emphasis? … health and safety is a responsibility for everyone in a workplace. That realignment and shift to collective responsibility now has the critical building blocks in place and it’s time to turn our minds and efforts to health in the workplace – the other component of the health and safety double billing.

Safety addressed, health focus needed The Advocacy team of the EMA, led by Paul Jarvie (who led our responses and contributions on the safety changes), is now turning its attentions to health as the next important driver of prosperity and workforce participation. And there are two big strands of work on the boil. The first is helping employers achieve a healthier workforce. Why? Current research tells us the cost of ill health to the country and to business is 10 times that of the cost of workplace injury and death. Those numbers got our attention too! We have teamed up with the country’s biggest private health care provider and insurer, Southern Cross, to talk to members about the health of their workforce and what measures are needed and are

possible, to create a healthier and more productive workforce. Our members with large work forces will be hearing from us soon on how to be part of a far-reaching survey on workplace wellness. We will be rolling out the results across our membership region through our normal communications channels, but also through road shows around the major centres in our region north of Taupo. The second stream of work is around our ageing workforce. By the year 2068, there will be 400,000 or 29 per cent of workers over the age of 65, compared to just 7 per cent now – four times as many. We are going to have to move quickly to figure out how to keep their skills up-to-speed and how to help keep them healthy enough to work. This makes the discovery of workplace trends, such as those that will be thrown up by the Southern

Cross Wellness Survey, critical to building the big picture of health and wellness in the workplace. In addition, we are working with Southern Cross and players like the Retirement Commission, MBIE, and the Ministry of Social Development to help define how health and the ageing work force can be better understood in order to deliver employers the programmes and solutions they need to meet the challenge. This is important for many reasons, but from an employer’s perspective, critical to being able to fill a huge projected skills shortage. In short, it’s not long before we will begin to rely on our older workers to continue to work productively and we will need them healthy if we are to mitigate this perfect storm on the international horizon.

Mark Champion is EMA’s general manger of advocacy and industrial relations. Email mark.champion@ema.co.nz

Credit skynesher

BusinessPlus March 2017

Commentary By Abbie Reynolds

Under the terms of the Paris Agreement, which came into effect on November 4 last year, New Zealand has committed to cut greenhouse gas emissions to 30 per cent below 2005 levels, by 2030. This brings a new urgency to our efforts. Business will play a leadership role in transitioning New Zealand to a lowemissions economy – with emissions targets now in force globally. Under the terms of the Paris Agreement, which came into effect on November 4 last year, New Zealand has committed to cut greenhouse gas emissions to 30 per cent below 2005 levels, by 2030, and to report on our progress every five years. This brings a new urgency to our efforts. In New Zealand, business engagement is well under way. A survey of BusinessNZ’s Major Companies Group members in 2015 showed that more than 65 per cent of these large firms already had emission reduction targets in place and 61 per cent had introduced initiatives. Since then momentum has increased. Members of the Sustainable Business Council are strengthening their emission reduction activity. They are embedding it in their business operations, and working collectively to find other opportunities. Some SBC members are being bolder, with the likes of The Warehouse setting science-based reduction targets in line with a joint global drive to keep global warming well below 2°C. The Science Based

Business progress towards a low emissions economy Targets initiative is a partnership between the Carbon Disclosure Project (CDP), UN Global Compact, World Resources Institute (WRI) and the World Wildlife Fund (WWF). It provides businesses with the technical resources to set their emissions targets. Another great example is Countdown’s selling New Zealand’s first Fairtrade and climate-neutral coffee. Consumers get to purchase a coffee that is certified to benefit Fairtrade farmers and their communities, as well as providing additional income from the carbon credits gained through the Fairtrade supply chain.

Values on a par with financials Investors are also driving change. The New Zealand Super Fund has committed to reduce its investments in fossil fuels and target clean energy, and the NZX is proposing non-financial reporting guidelines for the first time, putting social and environmental factors alongside financials. Yet, for many Kiwi businesses, starting on the road to reducing carbon emissions can be challenging. So where does a business start the low-carbon journey? The carboNZeroCertTM certification process provides an excellent learning pathway which results in

a certification that can be used as part of your branding. BusinessNZ has recently achieved carboNZero recertification. The carboNZero programme will give you a picture of your carbon emissions and your reduction opportunities. It helps you to: •

understand what you spend, where and with whom across a range of areas;

•

find opportunities to improve, such as increasing recycling, reducing business travel or using a carboNZeroCertTM certified supplier;

•

reduce your carbon footprint and help meet best practice across your operations; and

•

most likely achieve cost savings too.

The fact is that investing in the right emission reduction initiatives is simply good business delivering a return on investment, cutting costs, creating competitive edge and boosting reputation. Ultimately, there are opportunities for every business. Those that proactively change behaviours and take advantage of the low-carbon transition now, will be the ones that secure a sustainable future.

Abbie Reynolds is executive director of the Sustainable Business Council, part of the BusinessNZ family. Visit www.sbc.org.nz 8

BusinessPlus March 2017

Commentary By kirk hope

Bang for buck Being part of a growing economy means more options for New Zealanders. Over the past few years as New Zealand’s GDP has steadily grown, it’s become more possible to pay down debt and invest in things that make a difference for the future. Now at the beginning of a new year, the new government leadership is considering what’s possible in the 2017 Budget. The available surplus, after providing for the Kaikoura earthquake, is not large, less than half a billion dollars, but could still be spent in a way that delivers good benefit.

Critical spends Business would suggest two critical spending items: infrastructure and tax. Already signalled in this year’s Budget (to be announced in May) is $3 billion capital spending for infrastructure. Having modern, safe facilities - roads, bridges, airports, broadband and other communications networks, water storage, utilities, pipelines and so on – is critical for living and doing business well. Recent infrastructure spending has been well placed. Current projects – roads of national significance like the Auckland western ring route, Puhoi to Wellsford road, Waikato expressway, and Tauranga eastern corridor - will soon be making a big difference, linking the main centres of greater Auckland, opening up Northland’s economy, and speeding up travel for Waikato and Bay of Plenty. Investment in urban rail in Auckland and Wellington and national broadband structures is also strategically important.

What would be the best use of $3 billion earmarked for infrastructure this year? A good answer would be more infrastructure to serve the tourism industry, especially if delivered by public-private partnerships. What would be the best use of $3 billion earmarked for infrastructure this year? A good answer would be more infrastructure to serve the tourism industry, especially if delivered by public-private partnerships.

For example, the 10.5 per cent rate for incomes up to $14,000 could instead apply to those up to $20,000.

Tourism is likely to keep on growing and needs more investment, especially in the regions. Roading, carparks, walkways, cycleways, toilets and other tourist facilities could all be developed and extended to better cater to the millions of overseas visitors coming here every year.

The 30 per cent rate for the next band up to $70,000 could apply to those up to $80,000.

As tourism is a key sector for export earnings, investment here will bring future gains.

This sort of adjustment could be afforded within the modest surplus available in this year’s Budget.

A second item worthy of consideration in this year’s Budget would be modernising tax.

While not as stimulatory as a major tax cut, it would still have the effect of increasing real incomes, spending power and business growth.

A surplus of under half a billion dollars is probably not enough to deliver meaningful tax cuts, whether business or personal tax. But it could be used to restructure the system in a way that would effectively leave more money in everyone’s pockets - by adjusting tax brackets and indexing for inflation. There’s a fair amount of agreement that current tax thresholds are set a bit low, for example KPMG has suggested thresholds could be adjusted upwards by about 9 per cent. Fairly moderate changes to the tax brackets could mean a lot to the average person.

The 17.5 per cent rate for the next band of incomes up to $48,000 could instead apply to those up to $64,000.

And the top 33 per cent rate for incomes over $70,000 could instead kick in at $80,000. The business rate would need to be reduced in tandem.

It would also be fairer. New Zealanders are already taxed quite steeply on modest incomes and subject to further tax because of bracket creep through inflation. Finance Minister Steven Joyce has in the past suggested that indexing tax thresholds could be part of a 2017 tax package. It would be good if this year’s spending could include adjustments of this kind. Investing in infrastructure and tax relief would give us good bang for the buck from the budget surplus.

Kirk Hope is chief executive BusinessNZ. www.businessnz.org.nz BusinessPlus March 2017

news Commentary

New business boost to service sector

New Zealand’s services sector experienced ongoing expansion during January to start 2017 on a very positive note, according to the latest monthly BNZBusinessNZ Performance of Services Index (PSI). The PSI for January was 59.5, which was 1.0 point up from December, and the highest value since September 2015. A PSI reading

above 50 indicates that the service sector is generally expanding; below 50 that it is declining. BusinessNZ chief executive Kirk Hope said that increased activity in the services sector was across the board. He says, “While [the sub index] activity/sales (at 60.8) remained above the 60-point mark, new

business/orders reached its highest level since January 2014, which should flow through to overall activity over the coming months”. BNZ Senior Economist Doug Steel says, “The PSI strengthened a bit further in January, which was no mean feat given it was already at very perky levels and continues the acceleration of late last year”.

Holiday mode for manufacturing Activity in New Zealand’s manufacturing sector saw January experience a dip in expansion, according to the latest monthly BNZ-BusinessNZ Performance of Manufacturing Index (PMI). The seasonally adjusted PMI for January was 51.6, with a PMI reading above 50 indicating that manufacturing is generally expanding; below 50 that it is declining. This score was 2.6 points

BusinessPlus March 2017

lower than December, and the lowest level of expansion since January 2015 However, the sector has remained in expansion in almost all months since October 2012. BusinessNZ’s executive director for manufacturing Catherine Beard said that while the decrease in expansion for the first month of 2017 was not ideal, it was clear from survey

respondents’ comments that a number of factors played a part. “Those who outlined negative comments noted the Christmas/ holiday break playing a sizeable role in reduced activity, as did weather conditions. On the flip side, those who outlined positive comments often did not note anything specific, but more business as usual.

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Heading: Seen @ EMA training and other events in Auckland

Phil Field [ARYZTA New Zealand] and Jamie Vujcich [Levitation Technologies]

Glen Procter [TPT Forests] and Jessica Lowson [Fisher & Paykel Appliances]

Dragisa Cosovic [Fletcher Construction] and Deryn McGregor [New Zealand Window Shades]

Michael Wynne [McConnell Dowell Constructors], Janine Cooper [Janine Cooper] and Lee Carr [Graeme Dingle Foundation]

Vili Pepa [Upright Access Systems] and Georanna Villarreal [Pipeline and Civil]

Sekona Tongia and Steven Vihi [Upright Access Systems]

Aaron Gillanders [NZ Bus] and Anthony Wildish [Amourguard]

Andy Evans [trainer Metanoia Safety] and Veronica McDonald [Sandford]

Occupational Health and Safety Certificate trainees, including Andrew Lees of Sealink (right), devise a timeline of developments in worker safety law.

Jean Leitch [Canadian Pacific Construction] and Mark Revell [EY] A timeline of developments in worker safety law, under construction 12

BusinessPlus March 2017

EMPLOYMENT By David Shannon

Sharing gains further motivates empowered teams Among the many approaches to reinforcing and rewarding team behaviour, gain sharing can be one of the most effective. Gain sharing is a pay system which: •

Shares the gains of productivity improvements with the employees who made them;

•

Relies directly on significant employee participation to maintain a strong link between team performance and reward;

•

Rarely operates as a stand-alone system, as it is highly dependent upon an organisation culture oriented toward teamwork, employee involvement and participative management.

But, however brilliant it can be, gain sharing is not necessarily appropriate or even possible in all situations. Successful gain sharing plans depend on the source of the pot of gold, and true team effort from “gain” to “share.”

Gain sharing vs profit sharing Gain sharing and profit sharing plans are often confused. Both are ways of dividing up (or sharing) extra funds among participating employees. The fundamental difference is the source of the “pot of gold” to share. In a profit sharing plan, participating employees work harder to raise total sales. If they increase those sales, they have added “profit” to share. In a gain sharing plan, participating employees work harder to cut the total costs of the company. If they cut those costs, they have those savings or ‘gains’ to share between management and employees. While the gain could technically be called profit, the term “gain” is used to distinguish the source of this money

on the expenditure side of the books from budgeted profit, which is found on the income side of the books. Deciding whether a profit sharing or gain sharing plan is more likely to succeed depends mainly on the potential for increasing profits vs the potential for cutting expenses. If the business is in a sector with increasing demand and opportunity for sales, ie, is in a “growth industry,” then profit sharing among staff may be the way to go. Examples include the IT industry, professional services and mail order sales. On the other hand, if the focus of the business is on retaining market share, it is unlikely there will be opportunity for increasing profit enough to share, such as in traditional big box stores, freezing works and supermarkets. Further, where the overwhelming share of costs is in personnel (salaries), such “gains” will be difficult to find. A third approach offers the opportunity to implement both profit sharing and gain sharing plans at the same time. If the business is such that a significant portion of the value added by the company is in processes where employees can change the ways things are done or materials are used, then gains may be made that lead to cost savings and the added funds will become available. This typically relates to manufacturing and processing industries of all kinds through their controlling wastage, and other productivity measures. In summary:

the employees’ ability to save costs through working smarter and harder.

Team role Gain sharing plans cannot simply be imposed on workers from above. They can only work effectively through the active support and participation of the team of workers who can make the changes that produce the gains. For this reason, gain sharing plans are usually managed by a committee of factory floor workers which: •

Considers suggestions for costs savings and recommends them to management;

•

Reviews the roles and performances of individual members of the team and makes decisions on the allocation of the funds gained among the team;

•

Works directly with management in monitoring the overall gains made and managing the funds made available for distribution to the team.

In this way, gain sharing is a true team effort from “gain” to “share.” Gain sharing plans can form the core of a strategy for companies where the objectives are: •

To improve productivity;

•

As well as to effect a change toward an open, involved management style that empowers employees and teams.

Teams thus empowered can be highly motivated.

The key element in profit sharing is the employees’ ability to increase profits through selling smarter and harder. The key element in gains haring is

David Shannon is EMA’s remuneration consultant. Email advice@ema.co.nz BusinessPlus March 2017

EMPLOYMENT

Get it wrong, and you cannot only run into compliance problems with the Privacy Commissioner, but also negative public relations and business interruption.

Good privacy practices are good business practices Protestors occupied the Auckland head office of recruitment firm Manpower late last year, accusing the company of asking job applicants for details such as religious and political views, and sexual preferences. Manpower’s experience shows how important privacy can be. Get it right, and you improve your brand as an employer and as a business. Get it wrong, and you cannot only run into compliance problems with the Privacy Commissioner, but also negative public relations and business interruption from experiences like Manpower’s. The following cases illustrate a few different aspects of privacy that employers should keep an eye on, to ensure they follow best privacy practice. You can find more details about these cases by searching for their reference numbers on privacy. org.nz

Hiring new employees A few years ago, a woman complained to our office after applying for a job at a retail business and being asked to consent to a credit check. She viewed this as a breach of her privacy, and we agreed. While it can be appropriate to look at a potential employee’s credit report, you need to have a clear purpose to do so, eg, the position represented significant financial risk to the organisation. We were not convinced that working in a retail shop met this threshold. (Reference: 222306)

Recording staff Another tricky issue in employment is recording your staff’s calls and conversations. One recent case made its way to the Human Rights Review Tribunal that reviews Privacy Act cases. 14

BusinessPlus March 2017

In this case, when a doctor took a job at a general practice her employers explained that staff phone calls would be recorded. Not long after, her employment was terminated when the recordings showed that she was spending her time at the GP’s office working for a dial-a-doctor service. She made a privacy complaint, but the Tribunal determined that her privacy had not been breached because her employers had told her that calls would be recorded, and they had a fair reason for recording them. There are some situations where employers don’t have to tell employees they are being recorded. For example, a few years ago we investigated a case where a caregiver’s colleague covertly recorded him speaking to his elderly patients in an abusive manner. The colleague then shared that recording with his employers, who used it as evidence to give the caregiver a formal warning. We found that they had not breached his privacy, because if they had told him they were recording him, they would not have been able to capture him doing what they suspected him doing. Under the Privacy Act, you can collect information (such as through a recording) without telling someone, if telling them would get in the way of the reason you are collecting the information in the first place. Of course, you also have to be fair and reasonable about what you collect and what you do with the information. (Reference 101213)

Access to information The Privacy Act gives people the right to see information that agencies such as employers hold about them. From an employment point of view, this often becomes relevant in disputes – as we saw in the case last year of a man who worked for TD Drilling. His employment came to an end under less-than-ideal circumstances, and he made a complaint to the Employment Relations Authority. As part of that complaint, he needed a significant amount of information that the drilling company held about him, such as the results of drug tests. The drilling company did not provide him with this information. When he complained to our office, the company first told investigators the information did not exist, and then that it had been lost, before eventually providing the information. This took many months, as the company did not respond to most of our communication with it. We found that the company had breached its former employee’s privacy by not providing him with the relevant information, and we also took the step of publicly naming the company. Holding information about people gives a certain amount of power over them, so it is important that companies are forthcoming with that information when asked for it. (Search for TD Drilling) To find answers to all kinds of privacy questions, try the tool AskUs on www.privacy.org.nz/ask

EMPLOYMENT By Matt Dearing

Stoush over Sunday text message A recent Employment Relations Authority determination serves as a reminder that employees claiming constructive dismissal have a high threshold to reach to be successful. The case revolves around Mr Bosman who was employed as a business development manager for Total Access and based at its site in Penrose, Auckland. On October 19, 2015, Mr Bosman said he had been working in his backyard with his wife when he received a text message from the company’s general manager Nick Kraan. The message contained just a photo of a work site with a company name on it. Mr Bosman took this to mean that Kraan wanted him to contact the company for potential work, and replied: “Don’t send me that on the weekends please Nick. Monday Mornings are good for this.” Mr Kraan was taken aback by this response and replied: “I’ll send it to Steve instead. Sharing a possible lead.” Mr Bosman replied: “Yes but weekend is personal time you could have shared that lead on Monday. Don’t be petty, of course I’ll follow the lead. I’m going to enjoy my day with my wife and dog and if you want to catch up tomorrow, then I’ll make that my concern tomorrow.” Mr Kraan responded that there was no need for him to reply that day, adding, “Txting has a park and save benefit. Think Attitude!!!”

Mr Kraan then scheduled a catch-up between the two men for Monday morning.

Fraught meeting The events of that meeting were disputed between the parties, however, Mr Bosman told the Authority that Mr Kraan was aggressive and told him his attitude “sucked” and said he would be “micro-managed”. Mr Bosman claimed that Mr Kraan swore at him and stated “you’re finished”, and that the meeting was becoming too heated so he decided to leave, when Mr Kraan assaulted him by shoving him in the back. During the Authority’s investigation meeting, Mr Kraan agreed that he had told Mr Bosman his attitude “sucked” and that he’d said “you’re finished”. However, Mr Kraan said he did this in the context of believing Mr Bosman had finished expressing his views, not that he was terminating Mr Bosman’s employment. He also claimed Mr Bosman swore at him as well. Mr Kraan said he did not assault Mr Bosman, but had placed a hand on his shoulder to get his attention to come back into his office. Mr Kraan said it was at this point that Mr Bosman started shouting and accusing him of assault. After the meeting, Ms Bosman resigned, claiming he could no longer stay in a work environment causing stress and unhappiness in his life. Prior to handing in his resignation letter, he “reset” his work phone

to remove personal data, however, the reset had the effect of deleting everything from the phone. He also copied work emails to a USB drive prior to resigning, as he believed they demonstrated unfair treatment towards him to. Mr Bosman then raised a personal grievance claiming constructive dismissal, ie, that he was forced to resign due to his employer’s behaviour.

Acid test: risk of resignation The Authority Member summarised the necessary test for a constructive dismissal, saying: “In summary, the inquiry into an allegation of constructive dismissal comes down to: Has there been a breach of duty on the part of the employer which has caused the resignation, and if so, was the breach sufficiently serious so as to make it reasonably foreseeable by the employer that the employee would be unable to continue working in the situation - that is, would there be a substantial risk of resignation?” The Authority Member did not agree with Mr Bosman’s claim of assault and failed to see how the events amounted to a constructive dismissal. The Authority accepted Total Access’ submission that the Monday morning incident was a one-off. It also noted there was evidence that Mr Bosman and Mr Kraan had previously had a positive working relationship and there was no evidence the employer was following a course of action designed to force Mr Bosman to resign. Continued on pg30

Matt Dearing is a senior solicitor at EMA Legal and a member of the Auckland District Law Society’s Employment Law Committee. Email matt.dearing@ema.co.nz BusinessPlus March 2017

EMPLOYMENT

Providing for feeding babies at work, people with disabilities and those who feel forced to resign Q. I have a woman wanting to breastfeed after she returns from parental leave but we have no space to do that. How do I respond? I don’t mind at all. – Sonny Dear Sonny Updated law regarding breastfeeding in the workplace took effect from 1 April 2009. This says an employee who is breastfeeding or expressing breast milk is entitled to request appropriate facilities and breaks in the workplace. Employers are required to ensure that, so far as is reasonable and practicable in the circumstances, appropriate facilities are provided in the workplace for an employee who is breastfeeding and/or who wishes to breastfeed in the workplace. You might want to consider providing a room or space that can be private, is of adequate size, contains a comfortable chair, a table, and, if possible, a fridge for storing expressed breast milk. The

BEST E H T EST YOU WE T R O F ...

“An “appropriate” break is likely to be long enough for the employee to breastfeed or to express milk” employee should also have access to a basin and running water if these (and the fridge) are not available in the space or room provided, however, what is reasonable in the circumstances will depend on the employer’s operational environment and resources. Under the current law, the requirement is for “appropriate” facilities to be provided. Employers may wish to check the Code of Employment Practice on Infant Feeding for suggestions as to facilities available to employees. Visit www.dol.govt.nz/er/ holidaysandleave/parentalleave/ infantfeeding/cep-infant-feeding.pdf There is no definition of “appropriate”

breaks in the legislation, however, the Code of Employment Practice on Infant Feeding indicates that this will differ for each employee due to the nature of breastfeeding, the needs and age of an infant, whether the employee is solely expressing milk and not breastfeeding the baby at work, and the operational environment the employee works in. An appropriate break is likely to be long enough for the employee to breastfeed or to express milk. The breaks are unpaid and in addition to rest and meal breaks (unless the employee and employer agree otherwise). If employers don’t do this, the Employment Relations Authority could make them comply or give them a penalty. A group of employers could consider getting together to provide a shared facility if there are lots of workplaces close together, for example, in a shared office building or a shopping mall.

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BusinessPlus March 2017

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EMPLOYMENT

...you cannot use a physical disability, impairment or illness as a reason to refuse someone a job…

a job, especially if their disability does not relate to their ability to do their role. Q. How can I prove I haven’t constructively dismissed someone? – Grant Dear Grant

Q. How safe is it to employ someone with a disability under the new health and safety law? - Ryan Dear Ryan WorkSafe NZ and health and safety legislation do not include anything specific about disabilities or medical conditions. The Health and Safety at Work Act requires all businesses, so far as is reasonably practicable, to ensure the health and safety of its workers and anyone else whose health and safety may be affected by work done for the business. A business should carry out an assessment to understand the risks and then take appropriate actions to manage those risks. However, what is more important to consider and note is that disability is also one of the unlawful grounds of discrimination under the Human Rights Act. Therefore you cannot use a physical disability, impairment or illness as a reason to refuse someone

If you have followed a thorough process before dismissing the employee and the dismissal was procedurally and substantially fair, you should be fine. A constructive dismissal usually requires an employee to feel that they have been forced to resign because they were given a choice between resigning or being terminated, or that the course of conduct by the employer coerced the employee to resign or there was a breach of duty by the employer which caused the employee to resign. Should a constructive dismissal claim reach the Employment Relations Authority or the Employment Court they would consider whether the conduct or breach was serious enough for the employee to not be prepared to work under those conditions, which would cause a resignation. It’s always best to discuss the finer points of your case with an EMA employment relations consultant or lawyer before making any comments

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or taking other action. Be sure of the ground you stand on. If you have in fact forced someone to resign, there is mediation and there are remedies available to minimise the fallout for all parties. Plus, bone up on employment law (come to an EMA course!) so it doesn’t happen again. By the EMA communications team in consultation with EMA Advice, and loosely based on real calls to EMA’s AdviceLine. All names are fictional. The information in this article is a guide only and not to be used as business advice without further consultation. EMA members can start with our free AdviceLine team at phone 09-367 0909 or 0800 300 362 (within New Zealand), and 1800 300 362 (from Australia), 8am8pm weekdays NZ time; or email advice@ema.co.nz You can also find information at www.ema.co.nz such as the A-Z of Employing – a manager’s guide on more than 100 specific employment topics, or the detailed Employer Guides on 12 popular topics.

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employment By Paul Jarvie

Health and safety as part of core company strategy Back in 1890 the New Zealand “Sweating Commission” investigated complaints of long work hours for poor pay in unsanitary workplaces. This led to labour investigations and the enforcement of reasonable working conditions. Over the years, a more organised and systematic approach to managing and growing businesses led to laws prescribing health and safety duties for employers/businesses and employees/workers. Now it is commonplace for businesses to articulate company goals/visions and mission statements, but what is still often missing is a strategic plan for occupational health and safety (OH&S). OH&S is seldom part of the overall company strategic plan or even a standalone plan that is aspirational and covers at least five years. Under the OH&S umbrella we often see annual business plans or yearly activities to be completed under a type of “key performance indices” (KPI) system. We also see targets set, such as for lessening lost time injuries (LTIs), carrying out inductions and training and audits. These are operational activities and somewhat reactive. They could be driven by an administrator rather than a highly trained OH&S professional. If the company wishes to be OH&Scompliant yet has high business aspirational goals and visions that would seem to be a mismatch. How can being legally compliant (which is the minimum required) be viewed as high level aspirational or leading behaviour?

Sometimes OH&S professionals find it difficult to articulate their roles in terms of the corporate vision or goals. They often revert to the reactive “see it, fix it” role, or manage the injury data because that’s all the business asked for, to confirm compliance.

Raising OH&S to strategic plan level But if OH&S was accepted as a core business function, it would be part of the company vision/goals or mission statements. Sadly this is not often the case. OH&S is delegated to an administrative, reactive, fix-it role and is perceived as an overhead rather than a core business role to assist the business meet its targets and goals. Businesses can easily describe a maintenance role and a human resource role in terms of company vision and goals, but often find it very difficult or strained to articulate the OH&S role. Despite the common mantra that “staff are our most important asset”, too often there is minimal compliance for OH&S interventions. We often hear about various departments within a business planning changes, upgrades, expansions or refits, without any focus on OH&S. That only gets included after an accident event. The OH&S function is for the prevention of work-related ill health and injury. At a second level depending on the company’s social conscience and vision and goals, this can and should roll into considerations out-of-work health and safety: keeping staff healthy and fit away from work will assist them to attend work in a willing, fit and able state.

If OH&S was viewed and practiced as a core business function it would become core to the company strategic plan, vision and goals. It would be viewed and practiced as a means to the corporate end and not as an overhead. The new Health and Safety at Work Act 2015 does emphasise this point of view, by requiring company directors to undertake due diligence on OH&S compliance. The intention is to put OH&S on the board table as a core business function, and as a regular topic of discussion at a high level. In the past, the OH&S professional often reported to HR who then reported to the CEO who then reported to the board. This line was open to spin and ended up with the board only getting good news.

Changing nature of work Making OH&S a strategic and core business function will help businesses to handle the many issues facing work in the future, such as an ageing work force, automation, flexible working hours and the requirements of the Millennials workforce. An emerging consideration is safety through design. This has as its basic premise that most safety risks can be designed out or at least mitigated to an acceptable level. The role of the OH&S professional in this space is vital, yet we often hear that their involvement is to sign off a structure or event after it’s been designed, constructed, tested and commissioned. For example, noise at work has traditionally been measured and staff given audiograms and hearing protection.

Paul Jarvie is EMA’s manager of employment relations and safety. Email paul.jarvie@ema.co.nz 18

BusinessPlus March 2017

Continued on pg30

employment By julie kidman

Are great salespeople made or born? Will training a salesperson help them hit their numbers? Are great salespeople made or born? Multiple variables influence the outcome of a sales interaction, including factors outside the salesperson’s control, such as the economic climate and the state of the customer’s business. Another variable is the complexity of many sales interactions, specifically in the business-to-business arena where there may be multiple decisionmakers, shifting criteria, or the clients’ requirement for a significant change to their existing business. Add to those variables the challenge of interpersonal effectiveness, and it’s a miracle that any salespeople are successful. But many are, and success leaves footprints: behavioural models and habits we can emulate, document and teach.

What matters for sales success Our team’s collective experience leads us to conclude three key factors define great salespeople:

desire, discipline and expertise, as described in more detail below.

· Success factor: Desire Generally the person who wants to win the most, does. However, as a motivation for sales success, desire is driven by a complexity of factors. For some salespeople a reward trip to Fiji will work; for others it is the “gong” or large commission cheque. Top performers are also intrinsically motivated; they need to feel they are contributing to something, making a difference, learning something new, being challenged and have some autonomy about how they operate. When salespeople turn up on your doorstep fully fired up and hungry for success, look after them, understand what feeds their desire and nurture it. Others may need coaching, support around goal-setting and frameworks for planning and prioritisation.

· Success factor: Discipline As our sporting heroes illustrate, success is also a matter of discipline. It’s easy to drop the ball in sales, such as forget to call back, not follow-up, to slow down on prospecting when

times are good or to keep chasing “dead ducks”. Disciplined salespeople keep excellent records, qualify opportunities, prioritise activities, set objectives, allocate the right amount of effort to achieve results, and monitor results. Some people instinctively know what to focus on. Most will benefit from understanding their sales process, creating a documented plan that includes specific, measurable, time-bound objectives, and utilises a framework for determining probable outcomes and qualifying opportunities, and a methodology to objectively select and implement activities.

· Success factor: Expertise Salespeople are no longer required to be a talking brochure; we have the internet for that. Instead, they need expertise: an understanding of how they can help the customer’s business, knowledge of the customer’s business and of their customer’s customers. In addition they need to understand the market, competitors, trends, political/economic/social factors, and they need to be able to interpret this information into meaningful insights to guide and influence customers, to co-create mutually beneficial outcomes. Continued on pg30

Julie Kidman is an EMA Tailored Solutions salesperson and sales trainer. She facilitates the Ultimate Sales Professional programme that provides tailored sales training. Email Julie.kidman@ema.co.nz

BusinessPlus March 2017

Keep your nger on the pulse Your people are one of your biggest assets. To make sure your business is performing at its best you need to get their pay and benefits ‘just right’. That’s where we can help. Using our market intelligence you can keep your finger on the pulse of market trends and act with confidence. The National Employers Wage and Salary Survey covers 216 positions. Our comprehensive reports include splits by industry, location and revenue bands: Salary reports: Reflect Salary ranges by position, location, revenue bandings and industry. Beneets and Conditions reports: Position specific analysis of benefits and conditions. You’ll find sample reports as well as a full list of positions and descriptions on our website.

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employment By val hayes

Healthy staff good for business too It seems obvious, but if your workforce is healthy this pays dividend for employers too. On a macro level, the direct costs of absence alone amounted to $1.45 billion across the New Zealand economy in 2014. The median cost for each absent employee in 2014 was $616, which was down from $837 in 2012. Non-work related illness and injury was by far the most widespread driver of employee absence, followed closely by taking sick leave to care for a family member or dependent. As per our column on page 6, we know the cost of ill health is 10 times greater than the cost of workplace related injuries or death. While everyone does have times of ill health in their lives, are there underlying causes or issues which can be mitigated? If employees are healthy and more productive, this is not only better for them as individuals but it has a significant impact for their employers and for the wider economy in general. Which is why weâ&#x20AC;&#x2122;re working with Southern Cross Health Society and BusinessNZ in the third nationwide Wellness in the Workplace Survey â&#x20AC;&#x201C; to be undertaken later this month. The key aim of the survey is to have a comprehensive look at the connections between absenteeism, sickness, costs and related workplace issues and practices.

Proactivity could improve From this survey we are able to look at trends (as this is the third comprehensive survey of this nature) and also analyse the results to provide guidance, recommendations and direction to employers and government on how to enhance our wellbeing overall. For example, in the previous survey around 35 per cent of staff continued to turn up for work even though they were ill. A more up-front policy, along with better workload management, would be helpful to mitigate this problem. The 2015 survey also highlighted that reduction of harmful levels of stress involves a combination of factors that employers needed to consider. First off the block was an emphasis on managing workloads, as this would help to mitigate issues around working long hours and the pressure to meet work targets. Larger businesses tended to be good at identifying and putting processes in place to deal with anxiety or stress. However, there seems to be a disconnect when it comes to turning that information into something workable for staff. While 70 per cent of New Zealand enterprises would occasionally take a formal approach to collecting non-work related information on staff, most were not overly proactive in terms of how to best use this

information. This is a relatively simple and straightforward way enterprises can identify initial steps to assisting their employees. Most enterprises take a familyfriendly approach to their workplaces, with larger businesses offering policies around location and fluidity of hours worked. For smaller businesses there were a couple of initiatives they could undertake to improve general staff wellbeing. These included the provision of flu vaccinations and offering flexible hours or working from home as part of a familyfriendly approach for employees who wanted to adopt this option. The previous survey also highlighted that 80 per cent of businesses did not have policies or arrangements in place for an ageing workforce. This has now become a separate piece of work for the EMA, led by Paul Jarvie, employment relations and safety manager. The 2017 Wellness in the Workplace Survey will be out in market later this month and we will be engaging our members with larger employee bases to provide input into this. Naturally, we will look to share these results later in the year, along with analysis around how employers can make best use of the survey findings from a practical day-to-day level, through to how this may shape our future advocacy and policy work with government.

Val Hayes is EMAâ&#x20AC;&#x2122;s external communications manager. Email val.hayes@ema.co.nz BusinessPlus March 2017

in business By david spratt

How the Internet of Things is transforming business Part 1 of four articles on how kiwi companies use the Internet of Things to be more efficient, cut wastage and to compete locally and globally. While getting sun burnt and considering the threat of global warming to my kids and their kids, I decided that, to save the planet, I could start by measuring the energy consumption of every electrical device in the world. This would help people understand how to use these devices more efficiently, to use less energy and then “Voila, world saved!” The only problem is, how the heck do I talk to every electrical device in the world? More importantly – how do I get them to talk back to me? Welcome to the emerging world of the Internet of Things.

What the heck is the Internet of Things? What might come to mind is the image of an over-hyped American guru telling us our new fridges will know whether we are about to run out of milk and place an order for delivery that day. Now, to be honest, I don’t want Countdown to know that every week I drink four dozen beers and kill my inner sadness with endless king size bars of dairy milk chocolate. So why am I trying to explain and justify something that sounds a little bit too much like big brother is watching? Because it matters. Because the Internet of Things is about how our businesses can sustainably compete in the future. To start at the beginning, the basic building block of the Internet of Things is the unique address that the

To start at the beginning, the basic building block of the Internet of Things is the unique address that the internet uses to connect devices and allow them to speak to each other. internet uses to connect devices and allow them to speak to each other. That address looks a bit like this: 000.000.000.001. Until recently, the number of possible addresses using this approach was around 4.3 billion. That’s plenty of addresses, you might say. Not quite. There are now more than 2.1bn smart phones in the world, and an additional 2bn PCs. That’s a total of 4.5bn devices, each with a unique internet address. Add every website to that list and the reality is we ran out of addresses years ago. (Tech geeks – yes I know it’s not that simple, but no one else actually cares.) So, the geniuses in internet land came up with a new addressing scheme called IP V6 (Internet Protocol Version 6). This provided for enough internet addresses to uniquely identify every molecule on the surface of the earth and for five similar sized planets. Using nontechnical terminology, we now have a “shed load of addresses” and won’t run out for another million years or so.

Meaning for business How will unlimited internet addresses help a business compete? Let’s take an example from our daily lives: geolocation. A certain group probably still owns an AA road map. For others, it’s hard

to imagine stopping at the side of the road to check that you are on the right track, yelling at your partner because he/she said “turn that way” and you said “which way?” and then it was too late and you missed the turnoff. Travellers got lost, deliveries were late, shipping deadlines were missed and business lost, all because we couldn’t find our way from A to B efficiently. Now we simply say, “OK Google, give me directions to home” and a soothing voice accompanies you all the way, never getting angry, and even able to connect to your home phone to tell the family exactly what time you will arrive. Not only that, this information could be, and is, made available to thousands of others. How do you think Google maps knows there is a traffic jam 5km down the road? You are already a part of the Internet of Things, only now the virtually infinite numbers of addresses means that geolocation is a drop in the ocean in terms of possibilities for efficiency and competitive advantage. Imagine that this same ability to communicate could be applied to things you make, things you ship, things you maintain and things you use, to deliver the products and services you rely on. The way you do business today could end up a bit like that dog-eared AA map, a relic of a bygone era.

David Spratt is a director of Total Utilities Management Group. Email your ideas or opinions to david@tumg.co.nz 22

BusinessPlus March 2017

in business By rosina webb

Comparing branding with marketing When you mention the word brand, many people automatically think “logo” – the unique design, or symbol that pictorially identifies your product or service. Over time your imagery and name become much more than just a logo. They become a brand - the aggregate of everything a company stands for. Your brand includes the company’s personality, its drivers, its “special-ness”, values and culture. A brand is the promise that a company will deliver, or which is experienced by its customer. It’s what your customer automatically thinks of when they hear or see your brand name. A brand is valuable and here’s why: •

It creates value for you and your customers – for businesses it is the security of future earnings; for customers it is the promise and delivery of an experience or product.

•

It is a business asset, and like all assets it needs investment for the future.

•

The more convincing and credible your brand, the faster people will trust your business; and the more attractive you will be to employees, customers and investors.

It is important you understand your brand. A simple brand test can help you get your head around what your customers may think of your brand. The test could include an evaluation of the following: 1. 3 things that are unique about the way you do things compared to your competition;

A simple brand test can help you get your head around what your customers may think of your brand.

2. 3 values that are most important to your company; 3. 3 things your team would say they loved about your business; 3 things clients would say they loved about your business; 4. 3 things you hate about your industry that you promise your business will never do; 5. 3 qualities that best describe the personality of your business.

Strategy and tactics It can be confusing, but branding differs from marketing. Branding is strategic. Marketing is tactical. Ideally they should both come into play with any effective marketing efforts.

Branding is the essential truth of a product or service. It doesn’t push. It suggests, “This is who I am and why I exist. If you like me, buy me. If you really like me, recommend me.” Marketing, on the other hand, is a pushing mechanism that says, “Buy our product because it’s best” or “Buy our product because it will fill your need or because it’s a cool product to own.” Marketing aims to encourage people to purchase your product or service. Branding will determine whether or not they become repeat customers or advocates to others of that brand. In short, marketing encourages buyers. Branding encourages their loyalty.

Rosina Webb is founder and managing director of Energise and Associates. Visit www.energise.net.nz BusinessPlus March 2017

IN BUSINESS By MATT PATERSON

Making cities work for business Commercial property of all types and sizes is the infrastructure of business – for retail, industrial, manufacturing, warehousing, and office. But commercial property only gets built when business succeeds. For business to succeed and developers to make properties available for business, all parties need cities that grow economically and in population. Cities that attract talent. Cities that are easy to get around. Cities that are liveable. Fundamental to this is understanding that cities exist because of people, and people want to live, work, and play in great buildings. Without people, buildings are redundant. As American economist and writer Ed Glaeser says, “cities are the engines for innovation”, and we firmly believe through innovation the New Zealand property industry can deliver quality commercial, industrial and residential buildings that reflect the growing demand and changing demographic patterns of our cities. Key to this is ensuring our urban planning and resource management systems are more effective, efficient, and less bureaucratic, to encourage innovative, responsive property development.

Complexity and constant tinkering A major constraint to development currently is the Resource Management Act (RMA). After its 22 amendments, we are far from convinced that any further tweaking of the Act will ever make it fit for purpose. One of the reasons amending the RMA has not worked is local governments’ complex decision-making processes, some of which are: •

how councils make decisions around environment protection and accommodating growth;

This directly impacts business. If people cannot afford to live in Auckland, or even get to work, they will find jobs elsewhere. Without workers, business cannot continue to grow and thrive. •

how councils raise and spend rates;

•

how effective their vision for the future of their city is; and

•

how well neighbouring councils work together.

The ways in which national infrastructure decisions are made and funded, matter as well. The current proposed amendments to the Local Government Act are also relevant. To overcome this complexity and constant tinkering, Property Council, EMA, Infrastructure New Zealand and the Environmental Defence Society are pooling our advocacy resources and expertise to start a nationwide conversation with other interest groups and Government, about how we can change the whole system to make it work better. Achieving this step-change will be a long-term project, but it is a critical investment in our future. For Auckland, this change is crucial. The negative impacts of poor urban planning and a resource management system that doesn’t facilitate development have resulted in a significant housing crisis. Auckland simply does not have enough houses to house the current population, or keep up with future growth.

Business impacts There are significant pressures on the availability of commercial land, too. The city’s transport infrastructure is woefully clogged, and there has not been sufficient investment by Auckland Council and central Government to ensure Auckland can cope.

This directly impacts business. If people cannot afford to live in Auckland, or even get to work, they will find jobs elsewhere. Without workers, business cannot continue to grow and thrive. For those reasons, the Auckland Unitary Plan has been instrumental in providing the platform for Auckland to stead step firmly on the path to economic and social prosperity. Auckland must have greater urban density and a variety of housing, and enough of it, that better reflects the specific needs and aspirations of Aucklanders. The Auckland Transport Alignment Project is another step forward, but there is more work to be done especially in regards to bedding down key infrastructure projects. Achieving better cities is not all about the macro picture. Individual buildings matter too. While not directly affecting northern New Zealand, the Hurunui/Kaikoura earthquakes exposed some flaws in how buildings have been designed and built. The earthquakes also highlighted that the current approach to upgrading and improving New Zealand’s existing building stock is clunky, disjointed and inefficient. Advocacy is constantly needed at both technical building code level and strategic level with central Government about how buildings can be improved. Our developers are building future “homes” for your businesses. We all have a joint interest in our cities being successful.

Matt Paterson is Property Council New Zealand’s Government Relations Director based in Wellington. Visit www.propertynz.co.nz 24

BusinessPlus March 2017

IN BUSINESS By Nathan stantaill

I came away knowing that this Internet of Things can put “sexy” back into the manufacturing industry.

It’s time to make manufacturing sexy Manufacturing has an image problem. The world is changing. A digital revolution has already taken place, technologies are shifting and businesses are innovating - not just to win, but to stay relevant. The New Zealand manufacturing landscape has changed, even in the past 20 years since I studied manufacturing at university. Back then, New Zealand made appliances and cars. We now find ourselves better at short run manufacturing and better poised to meet “niche” customer need. This makes us reactive, able to customise at a fair cost with good quality. But is it attractive manufacturing? I’ve just come back from the Consumer Electronics Show (CES) in Las Vegas, where the best, brightest and most innovative consumer technologies are showcased. An example is Amazon Alexa, which has teamed up with Intel to deliver a true voice-activated smart home. I came away knowing that this Internet of Things (IoT) can put “sexy” back into the manufacturing industry. Young adults (Millennials) are flocking to digital careers but are yet to fully appreciate its convergence into manufacturing, or “the industrial Internet of things”. A software developer for a gaming, music or camera-developing company (all

of which thrive in New Zealand) has a lot more appeal than a traditional PLC or CNC programmer in a factory. Creating smart consumer-based products or making a factory IoTconnected is incredibly simple now. Even if you don’t write code you can borrow code from GitHub and other sites by simply Googling it. At this point it doesn’t really matter, as you are simply prototyping to test, validate and “fail fast” should that be the outcome. The real work begins post-validation in ensuring your architecture is sound, intellectual property is considered and that dreaded word “security” is taken care of in the cyber world. Investments can then be made with greater confidence.

Digital manufacturing – Industry 4.0 Collaborative Robotics are opening up a new world of possibility for advanced manufacturing. These humanoid style robotics are inherently safe, so don’t need to be locked in a cage, and are trained by moving their arms and end effectors (hands), as opposed to programming them. Callaghan Innovation has two such robots available for New Zealand businesses to trial, including Baxter. Additive manufacturing is particularly

Nathan Stantiall tests the DAQRI augmentedreality helmet at the Consumer Electronics Show (CES) in Las Vegas in January

fast moving and well represented in New Zealand. Manufacturers have great metal printing capability and can now make low-run injection mould tooling from polymer plastic. CES featured a 3D printer that can print circuit boards: the Dragonfly 2020 is a dual material printer of both a polymer and silver to lay down up to 20 layers of tracks, making it possible to build and test your electronics gizmo over a weekend. The DAQRI smart helmet (pictured) allows factory workers to get detailed assembly instructions through their glasses while their eyes stay on the task at hand. The next generation of job seekers are yet to fully appreciate the potential of a job in the tech-savvy world of Manufacturing 4.0, or Industry 4.0 - the German term for the Industrial Internet of Things, and is a key strategy pillar for many multinational manufacturers. This is where the IoT will take hold in their factories and I believe is the digital convergence that is bringing sexy back into manufacturing.

Nathan Stantiall is a Business Innovation Adviser at Callaghan Innovation. Visit www.callaghaninnovation.govt.nz BusinessPlus March 2017

Globalisation surpassed pre-crisis peak, advanced modestly in 2015 The world was about 8 per cent more connected in 2015 than in 2005 and continues to be so, according to the 2016 DHL Global Connectedness Index. Global connectedness is measured by cross-border flows of trade, capital, information and people. Connectedness surpassed its 2007 pre-crisis peak during 2014. The “information” pillar of connectedness – measured by international internet traffic, telephone call minutes and trade in printed publications – showed the strongest growth over the reporting period (2013-2015). The gains in capital and people flows have been more modest. But in contrast, the proportion of goods traded across borders began to decline in 2012 and this trend accelerated in 2015.

Country by country Overall, New Zealand ranked 29th out of 140 countries in 2015 on the Index, up two places from

2013. Interestingly, New Zealand was noted as being among the countries with the most balanced connectedness between the inward and outward directions, alongside Luxembourg, Botswana, South Africa and Canada. The Netherlands retained its top rank as the world’s most connected country and Europe is once again the world’s most connected region. All but two of the 10 most globalised countries are located in Europe, with Singapore and the United Arab Emirates as the standouts. North America is the second most globally connected region and leads on the capital and information pillars, with the US as the most connected country in the Americas. Overall the US is ranked 27th in the Index. North America had the largest gain in overall global connectedness during the past two years, followed by South and Central America and the Caribbean.

Countries in South and Central Asia and Sub-Saharan Africa suffered a drop in their average levels of global connectedness. The Index ranks countries on their depth (intensity of international flows) and breadth (geographical distribution of flows), which combine for an overall connectedness score between 0 and 100.

Globalisation uncertain The chief executive of Deutsche Post DHL Group, Frank Appel, says, “Globalisation has served as the world’s engine of progress over the past half century. “The Index documents that globalisation has finally recovered from the financial crisis, but faces an uncertain future. It is imperative that policymakers and business leaders support an environment in which globalisation can continue to flourish and improve the lives of citizens around the world.” And emerging economies still lagged behind on global connectedness. The research leader, Pankaj Ghemawat, says, “Advanced economies are about four times as deeply integrated into international capital flows, five times as much on people flows, and nine times with respect to information flows.” The 2016 Index also documents a rising proportion of internet traffic crossing national borders, even as international trade and information flows lag their potential. Deutsche Post DHL Group’s CEO Post – eCommerce – Parcel, Jürgen Gerdes, says, “This underscores the tremendous headroom available for international e-commerce to boost business activity and expand the options available to consumers around the world.” The report and supplemental background information can be downloaded at www.dhl.com/GCI

BusinessPlus March 2017

international trade By catherine beard

Transforming the future of healthcare One of New Zealand’s first tech exporters, now with operations all around the world, Orion Health is set to change the way healthcare is delivered, both in New Zealand and globally. Chief executive and founder of Orion Health, Ian McCrae, explains how the company’s ground-breaking technology will support the practice of “precision medicine”. This is the new revolution in healthcare that will personalise healthcare and use comprehensive information about individual patients to enable the best possible care. He says, “Just like Facebook has transformed social interaction, and the Internet has transformed banking over the past decade, the same thing is going to happen with healthcare over the next decade. And the major driver is data. We’re gathering a lot more data than we’ve ever had before. “What this means is that in 10 years’ time, a visit to your GP is going to be fundamentally different.” Doctors will have access to a lot more information, eg, genetic information that predicts a patient’s propensity for certain conditions and what drugs are likely to work. They will also have information on other aspects, such as your microbiome – that is, the bugs in your body. Understanding more about an individual’s microbiome can help doctors to more effectively treat debilitating diseases such as diabetes, Crohn’s and Parkinson’s diseases. The wealth of health information that Orion Health’s technology captures, analyses, and delivers back to clinicians in real-time will enable doctors to deliver insightful, precise healthcare, customised to

What this means is that in 10 years’ time, a visit to your GP is going to be fundamentally different. each individual patient – precision medicine.

Machine learning “The patient’s electronic health record is fast becoming the most powerful tool in the medical toolkit. All the information will be stored in the cloud. It will have to be, because the size of the electronic file containing your complete patient record is estimated to be as much as six terabytes. That’s a quarter of the whole of Wikipedia!” So how will a doctor process all this new information in the short time in which they see their patient? “The truth is, they can’t. It will require high-powered computing, using insights from machine learning – a type of artificial intelligence that enables computers to find hidden insights without being programmed. Algorithms will scan vast data sets and identify recommended treatment plans tailored to individuals.” Whereas a statistical model is likely to have an inherent logic that can be understood by most people, the rules created by machine learning are often beyond human comprehension because our brains are incapable of digesting and analysing enormous data sets.

NZ’s leadership position Two factors are required for the successful application of machine

learning in healthcare: intelligent algorithms and rich data sets. Ian says, “The really exciting thing is that New Zealand is at the forefront of this change in using machine learning and big data. “We have very good computerised medical records. They have been automated for almost two decades. We also have a wealth of machine learning experience in New Zealand universities. New Zealand also has a sensible, well-organised health system with District Health Boards (DHBs) that are receptive to innovation. “So with the Precision Driven Health Project that’s recently been kicked off, we’re combining expertise from Auckland and Waikato universities with Orion Health’s international commercial experience, and engaging with New Zealand’s DHBs to make discoveries, and deliver some major breakthroughs – some world firsts. “We expect that over the next five to seven years, this will provide better healthcare, and give better insights to the physician and to the patients themselves. We want to get patients involved in their own healthcare. “What we’re talking about here is a fundamental change in healthcare. Just as antibiotics, hygiene and vaccinations have changed healthcare historically, data driven health is going to have a similar impact in the future. “Health is going to become a data science. At Orion Health we hold the medical records of 110 million patients worldwide, and with our technology and experience, we can enable New Zealand to lead this healthcare transformation.”

By Catherine Beard, ExportNZ executive director. Email cbeard@businessnz.org.nz BusinessPlus March 2017

international trade By thomas manning

El Dorado calling Sagely the New Zealand Government has been working for the past two decades to increase trade with Latin America, the wisdom of which the advent of Trumpism makes prescient. Arriviste United States President Donald Trump’s incorrigible nationalism and xenophobia are morphing into trade protection and anti-immigrant policies, which will undermine a wide range of multilateral free trade frameworks in favour of bilateral agreements. As the US lowers its portcullis, New Zealand’s free trade agreements (FTAs) with China and several other Asian nations will stand New Zealand in good stead but there’s real danger in having all one’s trade eggs in one made-in-China basket. Over-dependence on one market cost New Zealand dearly when the UK joined the European Economic Community in 1973 and it is again at risk of similar recessionary outcomes, as Trump’s policies have the potential to severely disrupt the Chinese economy which is New Zealand’s biggest export market. Sagely the New Zealand Government has been working for the past two decades to increase trade with Latin America, the wisdom of which the advent of Trumpism makes prescient. New Zealand exporters can capitalise on the legwork done in the Latin America in recent years by former prime ministers Helen Clark and John Key and numerous ministers, who’ve succeeded in positioning New Zealand in the region’s consciousness as a font of high-quality, eco-friendly goods, cutting-edge technology and world-ranking education services.

In addition to New Zealand’s existing FTA with Chile, others are in the works with Mercosur, Mexico and Colombia and no doubt the mandarins at the Ministry of Foreign Affairs and Trade and New Zealand Trade and Enterprise are beating a path to Peru and Brazil, as bilateral trade becomes, at least for the time being, the only game in town. Getting boots on the ground is always problematic in any new export market and no more so than in Latin America, where commerce is driven by unique imperatives. A common mistake New Zealand exporters make is to think of Latin America as a homogeneous region, when each of its 33 countries has differences and challenges which must be taken into consideration. Logistics and sales strategies that are effective in one country can prove to be wholly ineffective in another if exporters do not have a comprehensive cultural understanding of each country.

Getting to know you There are few places in the world where personal relationships are more integral to commercial success than in Latin America, as business people invariably want to get to know potential partners, customers and clients personally before they will consider doing business with them. Accepting social invitations, meeting your contact’s friends and

family and sharing both business and personal experiences to build trust is time-consuming but it is an investment that pays handsome long-term dividends. Latin American business classes are very cosmopolitan with a lot of international experience, but they’re still ultra-sensitive to inferences of superiority New Zealand will necessarily work in Colombia, for example. And equally it’s arrogant to insist on doing things the “New Zealand Way” anywhere in the region. Latin Americans abhor giving offence, which leads to the conundrum that a “yes” answer, especially in Brazil, can also mean “no”, as they don’t wish to offend. Reading between the lines is a skill that must be developed quickly, as more often than not the “yes” which means “no” can still lead to a “yes” which really does mean “yes” once the speaker knows you better, and this is why patience is a virtue in Latin American business and why it takes around 30 per cent longer to conclude than in the West. Although business in Latin America is primarily concerned with relationships rather than rules it is necessary to understand local legal requirements and to accurately document all agreements and contracts. Working with reputable lawyers is indispensable. Continued on pg30

Thomas Manning is governing director of Manning Group Ltd and Transpacific Business Tours, and publisher of the Transpacific Business Digest. Visit www.manninggrouplimited.com 28

BusinessPlus March 2017

international trade

Time for exporters to share their success stories With exporting a hot topic, it’s time for those in the sector to share their success stories with the rest of New Zealand. Entries are now open to the annual Air New Zealand Cargo ExportNZ Awards 2017 – Auckland and Waikato, and judges are wanting to hear how exporters have triumphed over adversity to build a successful business. New Zealand is a trading nation and our exporters are vital to New Zealand’s economy, which has come under the spotlight with recent global events that indicate a move to more protectionist policies, says Catherine Lye, regional manager of ExportNZ Auckland, Waikato and Bay of Plenty. “Which is why these awards are crucial, as we need to recognise the role of exporters in our country, celebrate their stories and journey so far, and learn how they’ve overcome highs and lows to succeed in the world of exporting. “The very nature of exporting means these operators often have a more significant presence offshore, than onshore, and the awards are an excellent way we can share their success stories, along with the challenges they need to overcome.” For the year ended June 2016 exports of goods and services accounted for 28 per cent (NZ$70.9 billion) of New Zealand’s GDP. The goal is to build this to 40 per cent by 2025. ExportNZ Auckland has been running the awards since 2009, as part of its mission to champion the value of exporting for New Zealand and New Zealanders.

ExportNZ Auckland and Waikato are divisions of the Employers and Manufacturers Association. The 2017 awards will be presented at a black-tie gala dinner on Thursday, June 29 at Sky City Convention Centre in Auckland. Entries for the awards close on March 17. You can find the entry form at www.exportexcelerator. co.nz where you can also read about entering, and about past awards programmes.

Air New Zealand Cargo ExportNZ Awards 2017 award categories: 1. Westpac Exporter of the Year (export revenue over $25million) 2. Ports of Auckland Exporter of the Year (export revenue $10m - $25m) 3. BDO Exporter of the Year (export revenue $5m $10m) 4. DHL Exporter of the Year (export revenue $1m - $5m) 5. Endace Services Exporter of the Year (export revenue $1m - $10m) 6. Baldwins Intellectual Property Best Use of Commercialisation for Export 7. Supreme Winner (selected from the winners of award categories 2-5) 8. Fairfax Media Exporters Champion (for exemplary services to export)

MP Steven Joyce (l) and Air New Zealand Cargo’s Blair Goudie (r) presenting the Supreme Award 2016 to Dean Bell of Waikato Milking Systems.

Comments from Supreme Winner 2016 - Waikato Milking Systems Entering the 2016 ExportNZ Awards was, according to Waikato Milking Systems’ chief executive Dean Bell, an opportunity for reflection on what had been achieved during the company’s 49-year history. He says it was one of the most valuable team-building exercises the company had been through, generating palpable team pride and energy. “Our focus has always been on innovating, designing and manufacturing milking systems and technologies which revolutionise dairy farming, and we hadn’t formally paused to reflect and compare our achievements with other leading New Zealand businesses. “Entering the Awards was a valuable exercise because it required us to step back and evaluate what unique features enabled the growth we have achieved in our short history. And that came down to a team of exceptional people who continually challenge the status quo and who deliver worldbreaking innovations which change and improve the life of dairy farmers around the world. “The benefits of entering the Awards were therefore twofold: recognition of what the company had achieved; but, moreover, an opportunity for staff to pause and reflect on the part they played in that success,” says Dean. BusinessPlus March 2017

Continued from pg15

Stoush over Sunday text message Further, the directors of the company had asked Mr Bosman to reconsider his resignation after a cooling down period. The Authority said Mr Kraan did not have the authority to “send away”, that is, dismiss, Mr Bosman. Therefore, the words “you’re finished” did not amount to dismissal. Also, by abruptly resigning, Mr Bosman did not give his employer an opportunity to investigate the issues of the Monday morning meeting. In conclusion the Authority found: “Ultimately, Mr Bosman resigned from Total Access of his own free will. He may have done so in difficult or heightened circumstances - and prematurely, that is, in the absence of an investigation into the events of 19 October 2015 - but the consequences of that decision are for him to bear.” The latest EMA statistics on personal grievances show that constructive dismissal is the hardest type of grievance for an employee to win, and as this case demonstrates, a high threshold needs to be passed before such a finding will be made. Matt Dearing is a senior solicitor at EMA Legal and a member of the Auckland District Law Society’s Employment Law Committee. Email matt.dearing@ema.co.nz Continued from pg18

Health and safety as part of core company strategy Under a strategic plan this could not continue. What would be in place would be a “hearing conservation” 30

BusinessPlus March 2017

programme that would identify the noise sources and then over time implement noise reduction measures. This would require high level board involvement for capital expenses, engineering, procurement, etc. It would sit inside the company’s vision and goals to be a world leader, putting safety first and genuinely treating staff as the most important asset. Until safety and health are part of the strategic direction and values of a company, they will remain as overheads and compliancebased. Paul Jarvie is EMA’s manager of employment relations and safety. Email paul.jarvie@ema.co.nz

Facilitate salesperson capability-development through targeted training and providing tools, templates and processes. This, when supported by proactive, engaged coaching and nurturing your salespeople’s desire, can create great salespeople who will deliver exceptional results. Julie Kidman is an EMA Tailored Solutions salesperson and sales trainer. She facilitates the Ultimate Sales Professional programme that provides tailored sales training. Email Julie.kidman@ema.co.nz

Continued from pg28 Continued from pg19

Are great salespeople made or born? Customers are more likely to do business with a salesperson who they perceive as competent and adding value to their organisation. Salespeople need to know how to develop their expertise, where to get information, how to process data and how to use it effectively. They also need to understand the importance of, and invest in, continuous professional development. Born or made? So, back to the original question: are great salespeople born or made? The answer is: both. Hire for attitude and exceptional interpersonal skills.

El Dorado calling Another common mistake New Zealand exporters make is to presume their business contacts speak English, when only a small percentage of Latin Americans can. Learning Spanish (or Portuguese for Brazil) greatly enhances business prospects by serving as a token of respect for local culture, and goes over a treat, promoting deeper understanding of the importance of proposals and agreements and enabling better exposition of products and service to clients. Sir Walter Raleigh and the Spanish conquistadors never found the fabled riches of “El Dorado”, a city reputably built with gold, no doubt because they ruthlessly supplanted local cultures with their own. But 500 years on, Latin America’s 600-plus million, upwardly-mobile consumers will willingly show the way to El Dorado if New Zealand exporters respect the region’s cultures and business customs. Thomas Manning is governing director of Manning Group Ltd and Transpacific Business Tours, and publisher of the Transpacific Business Digest. Visit www. manninggrouplimited.com

Stephen Matthews HMI Technologies launches New Zealand’s first autonomous vehicle.

Pioneering driverless vehicles in NZ Trialling New Zealand’s first driverless vehicle is the start of a new phase of growth for HMI Technologies in Auckland, says chief executive Stephen Matthews.

The company launched its imported autonomous vehicle (AV), a smart shuttle bus, with partner Christchurch International Airport, in January. This month the two-year trial begins off-road in and around the airport. Testing will show what the vehicle can and can’t do in various situations, such as different weather conditions, and eventually with people on board. The trial will see the AV travel from A to B on a pre-programmed, dedicated route. The smart shuttle ranks at level 4 out of 5 on the autonomy scale. Level five is fully autonomous for public roads and many car manufacturers have designs for this level. Not that any country has approved and regulated the use of AVs yet. Level 4 is autonomous but for dedicated routes.

Smart shuttle specs • • • • • • •

Seats 10 and carries 15 people Low to the ground for easy boarding Fully electric, very quiet 4-wheel steering enabling tight turns Smooth ride, safe to stand in Usual speeds of 20-22kph although capable of 50kph The Navya vehicle was imported from France

Eventually the smart shuttle bus could be driven in a platoon of shuttles electronically linked together. The platoon could travel a certain distance then individual shuttles drive off in different but pre-programmed routes, depending on demand. This concept is called “first and last mile” transport that would link people to other transport hubs. The potential is for smartphones to talk to the smart shuttle that will allow passengers to arrive at their preferred destination. In addition to airport use, an AV could transport people around event sites, campuses, ferry-to-bus stop or trainto-car park or shopping precincts. Other partners in the $1.5 milliona-year trial are Christchurch City Council, the Ministry of Transport, the New Zealand Transport Agency and the University of Canterbury.

Stephen says more partners are welcome, and HMI would like to hear from other companies who might wish to collaborate on this adventure into the world of “mobility as a service”. Commissioning the vehicle was a big effort, requiring GPS coordinates to be developed and batteries and other systems to be commissioned. All this had to be crammed into two weeks for the launch by the Minister of Transport and Mayor of Christchurch. HMI Technologies started out in 2002 as an electronics innovation company, with a focus on intelligent transport systems (ITS) – of which half the output is exported. A world leading team of 10 conduct research

and development and the remaining 90 staff produce and manage a range of products and services such as electronic signs for motorways, school signs and Bluetooth tracking in traffic management. A subsidiary company AraFlow provides analysis of traffic data for simulation and forecasting that is aggregated from the sensors around our city routes. Stephen says the company’s success in pioneering AVs in New Zealand and Australia is based on innovation design, high quality, affordability and great service. “HMI is at the forefront of the transport revolution.”

Horse to car to AV The trial AV is designed to stay on course and avoid pedestrians and other hazards. It can sense movement using Lidar technology – and has picked up the movement of grass in a breeze. It appears that HMI’s AV can arrive at its destination within 20mm of the target – more accurate than a human could, says Stephen. However, the trial will validate all risks and challenges. “But the partners in this project are all very interested in consumer choice and removing congestion, improving public safety and environmental outcomes.” And watch out, because this integrated mobile experience will be available at a rapid and transformational rate – at least as disruptive a transport solution as the Model T Ford replacing the horse and cart around 1900, says Stephen. “People won’t own cars in the future.” BusinessPlus March 2017

FREE for all EMA members | To register call AdviceLine on 0800 300 362 or email advice@ema.co.nz Visit www.ema.co.nz

Summer Member Briefings Schedule 2017 Waikato / BOP Day/Date

Time

Venue

Weds. 1 March

9.30am -11.00am

Holiday Inn, 10 Tryon Street, Whakarewarewa, ROTORUA

Weds. 1 March

2.00pm - 3.30pm

Central Kids Kindergartens, 6 Glenshea Street, PUTARURU

Thurs. 2 March

9.30am - 11.00am

Claudelands Conference Centre, Corner Brooklyn Road & Heaphy Terrace, HAMILTON

Day/Date

Time

Venue

Fri. 3 March

9.30am - 11.00am

Quality Hotel Lincoln Green, 159 Lincoln Rd, HENDERSON

Mon. 6 March

9.30am - 11.00am

Butterfly Creek, Tom Pearce Drive, MANGERE

Mon. 6 March

3.00pm - 4.30pm

Waipuna Conference Centre, 58 Waipuna Road, MT WELLINGTON

Tues. 7 March

9.30am - 11.00am

QBE Stadium, Stadium Drive, ALBANY

Tues. 7 March

3.00pm - 4.30pm

Bruce Mason Centre, 1 The Promenade, TAKAPUNA

Weds. 8 March

9.30am - 11.00am

Rainbows End Conference Centre, Clist Crescent, MANUKAU

Weds. 8 March

3.00pm - 4.30pm

Ellerslie Event Centre, Ellerslie Racecourse, 80 Ascot Avenue, REMUERA

Thurs. 9 March

9.30am - 11.00am

Counties Inn, 17 Paerata Road, PUKEKOHE

Thurs. 9 March

2.30pm - 4.00pm

Bruce Pulman Park, Teamsports Centre, Walters Road, PAPAKURA

Fri. 10 March

7.30am - 9.00am

EMA, Room C, 145 Khyber Pass Road, GRAFTON

Fri. 10 March

2.30pm - 4.00pm

EMA, Room C, 145 Khyber Pass Road, GRAFTON

Mon. 13 March

9.30am - 11.00am

Titirangi Golf Club, Links Road, NEW LYNN

Tues. 14 March

2:00pm - 3:00pm

Webinar: www.ema.webex.com

Day/Date

Time

Venue

Thurs. 16 March

9.30am - 11.00am

Woodlands Conference Centre, 126 Kerikeri Road, KERIKERI

Thurs. 16 March

1:30pm - 3:00pm

Distinction Whangarei, 9 Riverside Drive, WHANGAREI

Day/Date

Time

Venue

Fri. 17 March

9.30am - 11.00am

Aotea Centre, Lower NZI Room, Level 3, Mayoral Drive, AUCKLAND

Auckland

Northland

Auckland