Our Top 200 Companies - Page 66
TOP 2OO
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Companies
New leaders for a new world
Mark Waller, Ebos Group
Executive of the Year:
Mark Waller, Ebos Group p36
Company of the Year: Beca Group p39
DECEMBER 2010 $7.10 INCL GST
Understanding the new world... John Key, Alan Bollard, Sir Stephen Tindall, Jeanette Fitzsimons, Rod Drury, Greg Cross p24 + Kevin Roberts p15
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Welcome
Welcome to the new world...
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e’ve reached another year end battling, adapting to, or in some cases riding high on the winds of change in the aftermath of the Global Financial Crisis. Those organisations and individuals that are casualties of the turmoil will question whether there is any silver lining to the GFC cloud. Having completed the lengthy process once again of data-gathering and auditing to produce this year’s Deloitte/Management magazine Top 200 Companies list, and the judging process to determine the award winners, we can state unequivocally that, yes, New Zealand’s best performing companies have created opportunity out of adversity. For the corporate sector the opportunity was not around revenue growth but cost control and efficiencies and building the bottom line. The successful companies have become leaner and smarter as our Top 200 overview for the year (pg 21) and the award winners that follow show. As uncomfortable in this new environment as many of us may be though, we only have to look to Europe to remind ourselves that we don’t have it so bad. And take a look at the musings of some of our thought leaders on page 24; for those still waiting for a return to some kind of ‘normal’ – welcome to the new world where constant change and
Deloitte/ Management Magazine
TOP 2OO A Bold Spirit
accelerated market shifts are the new norm. The organisations that are thriving are those that have embraced the new culture of openness and transparency engendered by this age of instant online communication. There is no better example of this than our company of the year, Beca Group (page 39). It is the first time that a private company has won the title and that was made possible by Beca opening its books for scrutiny by our auditors and judges. And while we are on the subject of auditing I’d like to acknowledge the sterling efforts of our data gathering and proofing team, especially Gill Prentice and Kevin Lawrence and our auditing team partners from Deloitte. Under the watchful eye and direction of Kim Fisher who has been managing this process for several years now, Daniel Karlsson and Maria Vorobieva did a thorough and efficient job of auditing the figures. The ranked list of Top 200 Companies, together with the learned deliberations of our judging panel, produce a set of results with integrity. I am sure you will enjoy reading the background to the success of this year’s Top 200 winners and finalists. Such success is no mean feat in our ‘new world’. My congratulations to all of the top performers. And to our readers and partners, thank you for your support through another challenging year. May you have a pleasant and welcome break over summer and we look forward to working with you in 2011. And don’t forget to visit www.management.co.nz for coverage of the Top 200 Awards event and video interviews.
www.management.co.nz a mediaweb magazine EDITOR Brenda Ward 09-575 8830, editor@management.co.nz contributing EDITOR Reg Birchfield reg@rjmedia.co.nz CONTRIBUTORS John Clarke, Anthony Drake, Murray Jack, Colin James, Ruth Le Pla, Neil Prentice, Janet Ranganathan, Keith Stewart, Peter Tynan Advertising Manager Clara Iqbal 09-271 3711, 021-930 887, admanager@management.co.nz DESIGNERS Cherie Tagaloa, Stephanie Smith, Fran Marshall COPY & WEB EDITOR Gill Prentice production MANAGER Fran Marshall franm@mediaweb.co.nz NEW SUBSCRIPTIONS www.management.co.nz/subscribe Subscription enquiries subs@mediaweb.co.nz publisher Toni Myers
Phone 09-845 5114, Fax 09-845 5116 enquiries@mediaweb.co.nz www.mediaweb.co.nz PO Box 5544, Wellesley Street, Auckland 1141
NZ MANAGEMENT magazine is independently owned by Mediaweb Limited and is published 11 times a year. It is the officially recognised magazine of the New Zealand Institute of Management Incorporated. Editorial material does not necessarily reflect the views of NZIM. Copyright © 2010: Mediaweb Limited. All material appearing in NZ MANAGEMENT is copyright and cannot be reproduced without prior permission of the publisher. Editorial contributions are welcomed. Letters to the editor are also welcomed, but pen names are not acceptable. NZ MANAGEMENT is printed by Benefitz. Subscriptions: One-year NZ subscription (11 issues) $78.15 (GST incl). Overseas (airmail only): Australia $NZ130; rest of the world $NZ250. Enquiries: Mediaweb Limited, PO Box 5544, Wellesley Street, Auckland 1141, New Zealand. Phone: 09-845 5114, Fax 09-845 5116, enquiries@mediaweb.co.nz www.management.co.nz New Zealand Institute of Management enquiries to: National Office, Box 67, Wellington; Northern, Box 26001, Epsom; Central, Box 11781, Wellington; Southern, Box 13044, Christchurch.
Vol 57 No 11 • ISSN 1174-5339 (Print), 1179-3910 (Online)
Toni Myers, publisher DECEMBER 2010
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contents 24 Top 200 Cover Story
Bold conversations
As part of this year’s Deloitte/Management magazine Top 200 campaign 'Understanding the New World’, NZ Management analysed six major contemporary issues and opportunities for business. In this, the final chapter, we ask leading New Zealanders to peek into the country’s future. 31
Against the odds
Top 200 companies rise to new world challenges
New Zealand’s largest companies improved pre-tax profits despite lower revenue in 2010. It was, in the words of the Deloitte/Management magazine Top 200 Awards judges, a year of consolidation. By Neil Prentice and Reg Birchfield.
Executive of the Year 2010: Mark Waller, Ebos Group.
3 PUBLISHER’s Letter 6
InBox: News and views
13 As I See It: Scott Bradley, VoucherMob 15 Managers Abroad: Kevin Roberts 16 NZIM: TetraMap’s mirror image – conflict and diversity. Reg Birchfield
Deloitte/ Management Magazine
TOP 2OO A Bold Spirit
18 Managing Sustainably: Putting a price on eco-systems. Janet Ranganathan 93 Focus 96 Execs On the Move 97 Executive Development Opinion 20 Politics: Enemies of capitalism. Colin James Advice 21 LEGAL: Contracting under the spotlight Anthony Drake 92 Exec Health: Sun smarter. Peter Tynan
DECember 2010 • Vol 57 No 11
top 200 23 Top 200 contents
90
36 Deloitte/Management magazine Executive of the Year. Mark Waller
39 Deloitte/Management magazine Company of the Year. Beca Group
42 NZIM/Eagle Technology Young Executive of the Year. Claire Szabó
47 QBE Insurance Chairperson of the Year. Alison Paterson 49 Kensington Swan Responsible Governance Award. Vodafone New Zealand
54 Marsh Most Improved Performance Award. Restaurant Brands
56 Workbase Best Growth Strategy. Sky Network Television
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60 Designworks Visionary Leader. Douglas Goodfellow 61 Judges 66 Top 200 Companies 80 Top 30 Financial Companies
features 90 Face to face: Paul Brock – The customer’s banker Kiwibank’s new chief executive likes to listen in when customers call his bank. He sees it as part of his job. He talks with Ruth Le Pla about his marketing roots and the bank’s next incarnation as a challenger brand.
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98 recognising excellence – appreciating quality It’s the time of year to think about rewarding staff and planning team building and incentives for 2011. We’ve found great examples of the best in learning/team building experiences, luxury get-away venues, fine-dining and champagne – everything you need to uplift or wind down. 107 NZIM's Focus On Management: Maori managers – will they make any difference?; Regional News; Member Comment – Lynda Carroll. 15
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inbox Mid-levels under fire
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e need to focus more on mid-level leaders, a new study by Development Dimensions International (DDI) has shown. In today’s world, middle managers are more like general managers of the past. They are shock absorbers of pressures exerted from many sources – senior leaders, their peers, their teams. It’s stressful and creates risk of disengagement. However, the DDI meta study of current literature and research has shown that very often mid-level leaders lack the confidence and training needed to execute on the business drivers of their organisations. Research shows that only 27 percent of mid-level leaders rate
Kea comes home
themselves as “very effective”. To drive performance in a changing world, with fewer resources, where we are fighting relevance in changing markets, there’s no margin for error, says Christien Winter, director of Sheffield, DDI’s exclusive licensee in New Zealand. She says today’s mid-level leaders must execute flawlessly, while successfully managing constant change. “Effectively addressing the issues at mid-level is critical to organisational continuity, through the ‘next generation’ of leadership talent,” Winter says. The study shows mid-level leaders are at the mercy of many influences that put them inside a pressure cooker. As key leaders in the drive to execute strategy, they are challenged to make decisions with trade-offs on cost, quality and efficiency, find ways to motivate and retain their teams through hard times, and influence a range of stakeholders to execute strategy – all in an environment of constant change. It’s time the development needs of middle management were assessed and addressed, says Winter. M
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lobal Kiwi network Kea has launched its first branch on domestic soil in Auckland. Around 500 Kea supporters and members gathered to wet the fledgling’s head and listen to addresses from notable Keas. Kea founder Sir Stephen Tindall acknowledged New Zealand success stories but warned that they are not sufficient for future prosperity. He pointed out that we export too much of our talent and our future wellbeing depends on attracting some of that talent back here. To that end he admonished supporters to get behind this Kea initiative which is to help repatriate returning expats and new migrants into Auckland business and its networks. World Class New Zealander Award Winner in 2006, Brent Hansen, former CEO of MTV International, was keynote speaker at the event, describing his experience in music television, beginning with New Zealand’s Radio with Pictures. Kea says it is also looking to establish similar offices in other parts of the country. M
Bikers wise up
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Biking is a great way to get to work.
6 | www.management.co.nz | decEMBER 2010
eca’s Christchurch office is a winner in the health stakes – with an incredible 79 percent of staff signing up to bike to work as part of the New Zealand Transport Agency initiative, the Bike Wise Challenge. The NZTA initiative encourages people to give biking a go and is open to any organisation, with a goal of encouraging as many staff as possible to ride a bike for at least two kilometres, or 10 minutes, during Bike Wise Month. Among the staff at Beca’s Christchurch office were 22 new cyclists. In total they went for 1344 rides during Bike Wise month 2010, covering 21,621 kilometres. Ditching the car and biking to work has been proven to raise productivity, foster better teamwork and also provides the obvious benefits of better health and fitness, less congestion and less pollution. Bike Wise Month is coming up in February and more information on the initiative and the events being held to support it is available at www.bikewise.co.nz. M
Remember to lock those phones!
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nly 18 percent of Kiwis always lock their mobile phones and the rest are risking identity theft, according to new research from Unisys. “Employers need to realise that it isn’t just the user of the phone who is at risk, but also the organisations they work for – especially since many of us use the same device in both our work and personal life,” says Brett Hodgson, managing director of Unisys New Zealand. The results from the latest Unisys Security Index also show that six out of 10 (59 percent) New Zealanders never secure their mobiles, PDAs or smartphones by using, and regularly changing, a password or PIN. The survey also showed only 35 percent
always use hard-to-guess passwords which are changed regularly when using the internet. “By not bothering to lock their mobile devices with a password or PIN, the majority of New Zealanders are leaving themselves unnecessarily vulnerable to cyber crime and identity theft. Consider the information that many of us keep on our mobile phones: phone numbers, addresses, birthdays and even bank account numbers. It’s information which, in the wrong hands, can be used to recreate your identity,” says Hodgson. He warns that many organisations have not yet caught up with the security protection and policies that the latest mobile gadgets require. M
Age challenges
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hanging workforce demographics means many organisations need older workers more than ever, say management lecturer Professor Peter Cappelli and HR expert William Novelli. The pair say older workers transfer knowledge between generations, transmit your company’s values to new hires, make excellent mentors for younger employees, and provide a “just in time” workforce for special projects. Yet more of these workers are reporting to people younger than they are, say the pair. “This presents unfamiliar challenges that if ignored can prevent you from attracting, retaining, and engaging older employees,” the pair say in their new book, Managing the Older Worker. In it Novelli explains how companies and younger managers can maximise the value provided by older workers. The key is recognising that boomers’ needs differ from younger generations and adapting your management practices accordingly. The pair draw on research in management, psychology, and other disciplines as they suggest that managing older workers will enrich your workforce. M
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he head of the international jewellery retailing chain, Michael Hill is a strong supporter of classical music. • Bach Solo Sonatas and Partitas by Monica Huggett This is complex music that has endless interpretations. • Michael Houston performs Beethoven Early Sonatas Pianoforte He is New Zealand’s best-kept secret. • J S Bach Italian Concerto in F – Dubravka Tomsic Playing Pianoforte Pure bliss. • Joseph Lin playing Bach and Eugene Ysaye Lin is the winner of the first Michael Hill International Violin Competition and has just been chosen to be the violinist in the famous Julliard Trio. M
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In today’s business marketplace....
Reputation is everything
New Zealand’s Most Reputable Organisations Workshop 2011 Do you want to know what it takes to be one of New Zealand’s Most Reputable Organisations? Hay Group and NZ Management magazine will be hosting a workshop in Auckland in March 2011, revealing the critical factors needed to build and maintain a strong reputation. Led by Hay Group experts and a panel of CEOs, this workshop will include: • a presentation on the key findings from the 2010 survey; • a keynote panel discussion on building and maintaining organisational reputation; • a practical session addressing the skills and behaviours required for what it takes to be one of New Zealand’s Most Reputable Organisations. Hay Group had a fantastic response to this year’s survey, identifying New Zealand’s Most Reputable Organisations, and will be undertaking this research again in May 2011. If you are a CEO, Board member or Senior Executive responsible for the reputation of your organisation and would like to attend this workshop, please contact Carolyn Dunn on t 0800 429 477 or e haygroup.nz@haygroup.com to register your interest .
Designer Di Curtis created a seal to represent trust, integrity and approval, and she used a fruiting Nikau as a metaphor for fertility – tree of knowledge – New Zealand style.
Acknowledged in 2010 as New Zealand’s Most Reputable Organisations were (from left): NZ Police, Air New Zealand, The Salvation Army and Kiwibank.
Software superstars
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he NZ Open Source Awards 2010 celebrated and rewarded the best and most innovative in New Zealand’s open source software at a gala event on November 9 attended by more than 200 people at the Intercontinental Wellington. The Catalyst Lifetime Achievement in Open Source Award was given to University of Auckland associate professor of statistics Dr Ross Ihaka. Ihaka is one of the originators of the world-renowned ‘R’ programming language and software environment for statistical computing and graphics. The New Zealand Open Source Awards are run by open source IT firm Catalyst IT. Other winners were: • Open Source in Government, IRD’s use of Moodle. • Open Source in Education, Albany Senior High School. • Open Source Use in Business, Ponoko. • Open Source Use in the Arts, Ghosts in the Form of Gifts (Te Papa). • Open Source Project, SilverStripe. • Open Source Advocate, Linux.conf.au organisers Andrew and Suzanne Ruthvern. • Open Source Contributor, Tabitha Roder for One Laptop per Child.
• People’s Choice, Amie McCarron for the Alcoholics Anonymous NZ websites. • The University of Auckland Clinton Bedogni Prize for Open Systems, Rob O’Callahan for his contributions to Mozilla Firefox and open web standards. For further information, see the NZ Open Source Awards website www.nzosa.org.nz. M
Investors not concerned about sustainability
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joint study by global consultancy Accenture and the United Nations confirms that chief executives care about sustainability although their investors do not. The study shows today’s CEOs are more committed than ever to creating a sustainable business, although the motivator is no longer just social responsibility. It’s now equally about achieving high performance measured in terms such as lower costs, stronger customer relationships and increased revenue. Entitled “A new Era of Sustainability”, the study is based on 50 in-depth interviews with company bosses and an online survey of a further 766 CEOs from around the world. Almost without exception, CEOs said they would like
YES!
to do more on sustainability but their investors just didn’t care about it. This, according to US and UK-based Accenture staffers Rob Hayward and Peter Lacy, “shows the nature of the impasse and the disconnect”. CEOS apparently cite a lack of investor interest as a critical barrier to further investment, but few attempt to communicate to shareholders on sustainability as a business issue. Even fewer see investors as an important voice in shaping their activities in this area over the next five years. However, the report suggests we are closer than many think to a “new era of sustainability”, in which environmental, social and corporate governance issues are embedded throughout operations, the supply chain and subsidiaries. M
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inbox Making change easy
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new organisation to help businesses move through change has been set up in Auckland. Changeability is backed by parent company Connect SR, a not-for-profit which has been successfully using an approach originally developed by Boston University and used for many years to help individuals to flourish. The team at Connect saw the enormous potential the application offers to the commercial workplace, and started Changeability to adapt and deliver this unique technology to modern business. All profits from Changeability are given to Connect to provide solutions in the community that are not funded by government bodies. Changeability’s Jeannine Walsh, says: “Executives told us they were looking for a short but effective intervention that would help managers lead change better and create engagement from staff during change. What makes us unique is that we help individuals take an active role in their own change. “By closing the gap between awareness and action,
Changeability supports employees to be more engaged, successful, and satisfied throughout the change process. This in turn helps organisations to maximise productivity, target resources effectively, and minimise disruption caused by the change,” Walsh says. “Changeability provides CEOs, HR managers, and other change leaders with a well developed practice technology.” Walsh says when an organisation wants a change to occur, managers need staff to get on board quickly. They have typically invested considerable time in preparation and planning to chart the way forward. However, before expecting staff to move forward with change, managers need to realise they are one step ahead of the rest of the organisation. Change is not a directive, it is a process; and people move through various stages before they are ready to take action. “When an organisation matches its resources and communication appropriately to its staff’s stage of change, the result is a smoother, more successful change process,” says Walsh. M
Talent mining
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n these tough economic times, many organisations don’t understand the capabilities of the people they have, says Iain Fraser, CEO at Project Plus. Iain Fraser. In general, he says the business world is still ‘jittery’ about investing in new initiatives in programme and project management and admits that in some respects that nervousness is still well founded. “For example with central government projects, the time it takes to approve them typically seems to be longer than in the past. People are more hesitant and take care about making a yes decision. Whereas in the for-profit world once those organisations commit to an initiative, they get right behind it and focus on the delivery time to ensure the benefits flow through sooner and RoI is generated earlier.” He says that this generates more risk and requires additional skills. That said he can see a growing maturity in leaders and managers who are becoming more sensitive to understanding the skills of their workforce and their talent capability via capability assessments. “You have to understand what you’ve got, so you can deploy the staff in the right way,” says Fraser. “You need to make sure a ‘super-duper’ person isn’t working on a job that might as well be sharpening pencils. You need them working on a complex initiative that requires a super-duper person.” Fraser says leaders need to understand the talents of the people they have and target investment in those people, “rather than just throwing 100 people on a training course that doesn’t benefit all 100”. He says that means people will get more effective learning investments and development opportunities. “If you match people to skill set demands and give people greater motivation, they will be willing to stay with your organisation. The key is to keep them longer and make better use of them and at the same time provide greater job satisfaction.” M
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Love to work here
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hen employees love going to work every day, companies find it easy to attract and retain staff, say the organisers of the JRA Best Workplaces Survey 2010. And confectionery giant Mars proves it as this year’s top workplace, returning for its fourth time as a finalist after winning the medium-large category in 2008. This year a car wholesaler, a district council, a stationery business and a hospice were all finalists in the survey, which is New Zealand’s largest annual workplace climate-employee engagement survey. It uses confidential feedback from organisations’ employees to rate their employers. This year 35 finalists from all over the country were contenders for the coveted title of Best Workplace. Almost 31,000 employees from 245 organisations across the country took part in the survey this year, up from last year’s 216. The 2010 finalists came in a range of shapes and sizes from the small team of just 22 employees at Gopher business directory, to the 866-strong team at Warehouse Stationery. Now in its 11th year, the Best Workplaces Survey has become the benchmark for best employer claims. This year’s finalists’ employees responded to 60 questions, grouped into categories such as culture and values, learning and development, reward and recognition, communication and cooperation. JRA managing director John Robertson says it is encouraging to see a large number of organisations still entering the survey, and the high level of staff satisfaction, despite difficult economic
conditions for some. “The JRA Best Workplaces Survey gives employees the chance to have their say, and provides employers with some fantastic feedback on what is working and how happy and satisfied their people are. “Finalists and winners rightly use their result to attract and retain the best staff and improve market perceptions of their organisation,” he says. Mars New Zealand was also winner of the medium-large size category and other winners by size from the 35 finalists were Redvespa Consultants in the small category, The Retail Institute in the small-medium category and Warehouse Stationery in the large category. M
Who’s lying now?
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third of job candidates exaggerate in interviews, 10 percent lie about their past salary, and 17 percent stretch the truth about their experience in interviews. But employers can be equally dishonest about what the job is, says Joe Ungemah, recruitment company SHL’s director of professional services, Australia and New Zealand. They often promise advancements, seniority and an environment that never eventuate. The company followed up people who had been for an interview within the past two years and found widespread misrepresentation on both sides – and figures show it may be on the rise. Additional research by SHL in New Zealand found that seven percent of HR professionals admitted that they themselves exaggerated their own education or skill to get a job. Further investigation showed employers do not always treat candidates with professionalism or reveal all aspects of the opportunity: • 74% of candidates reported negative interview experiences. • 44% were not notified of the hiring outcome. • 27% believed the job fell short of interview promises.
• 44% were asked to do jobs outside of the job description. • 33% experienced a poorer environment than expected. Not only that, but negative interview experiences can lead to resentment and lose companies customers. Previous research by SHL has found that nearly half of candidates have a negative view of the organisation following an unsuccessful application. The top areas where disillusionment occurs for those that are hired (from Talent Drain, 2008) involve lack of promotion opportunities, lack of training and development opportunities, and poor relationships with supervisors or managers. “Research from clinical and organisational psychology emphasises that negative experiences are hard to overcome,” says Ungemah. “In fact, a magic ratio exists that an employee would have to experience five positive interactions to counteract the harm done for every one negative interaction.” He says starting off on the right foot with a new employee is crucial to ensuring a strong psychological contract. “You can establish and maintain trust by having clarity about what will be provided and making the new hire clear about their obligations.” M
decemBER 2010
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AS I SEE IT M
Scott Bradley Scott Bradley is the CEO of the new retail voucher smart-phone venture, VoucherMob, launched last month. You’ve held a number of executive positions within the digital and communications corporate sector and been an entrepreneur too. Which do you prefer? I worked in consultancy roles within global professional services organisations, which was a challenge, but it wasn’t until I co-founded Utilyx, a digital start-up in the UK, that I really found my passion, which is being an entrepreneur. I love being involved in start-ups. Tell me about the launch phase of VoucherMob. There are a million balls in the air – trying to juggle emerging technologies like the iPhone and Android operating systems, marketing a new service using a complex social media strategy, developing a strong consumer brand in a cluttered market, signing up retailers, wooing investors, engaging the media and all while you’re putting in place the foundations of a rapid growth organisation. Luckily I have an incredibly supportive family! What is your biggest challenge? It is liquidity. As with my first start-up, suppliers won’t sign up without customers, customers won’t sign up without enough suppliers. The same challenge exists with VoucherMob – finding the right liquidity equilibrium without overspending and running out of capital before the business is cash-flow positive. Where do you see the future of communications? My first introduction to the internet was 1996 working on the Microsoft account at a large ad agency. I was the only person in the agency to have a dial-up connection to the internet because I worked on Microsoft. I then understood the massive potential of the internet. Mobile smartphone devices are about to change the game again. I think the personal smartphone changes the way consumers will interact with their friends, colleagues, brands and organisations. What does New Zealand need to make it great? Most of the very successful business people in New Zealand today have had extensive international exposure. Living and working in overseas markets allows you to identify opportunities and gives people the skills they need to be a successful entrepreneur – to understand failure is as important as success, realise you need a strong network around you to help you succeed and being a ‘winner’ is okay. New Zealand has some amazingly talented people, but not all of them realise their potential.
DECEMBER 2010
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MANAGERS ABROAD M
World Cup wins? Kevin Roberts, CEO Worldwide of Saatchi & Saatchi, has some suggestions for tackling commercial opportunities thrown up by sporting events such as the Rugby World Cup. superbly. I hope that New Zealand executes what will be the world’s last traditional tour next year superbly. Q: For some countries, might the money be better spent elsewhere? In other words, even if an event can pull a large international audience, might it nevertheless divert too many resources and stir up too much resentment and division at home to be worthwhile? Q: Cities, countries even, are increasingly seeing major sporting events as a way to market themselves as a destination and of reaping some economic benefits. Is this wishful thinking or can the massive cost be justified economically? A: Bringing great sporting events to nations is an emotional short-cut to the heart. When Barcelona and Beijing ran the Olympics, when South Africa ran the Rugby World Cup, these were events that galvanised a nation, that gave hope and belief. Feeling a sense of pride, of belonging, of community is good for you. Q: China got the 2008 Olympic Games right, but India mis-stepped with the 2010 Commonwealth Games. Are these events getting too big for many countries to host? A: India had a tough run. They are under a terrific threat from terrorism. They have Pakistan on the border. They had chutzpah, they had courage in asking, but I think they found they have a long way to go. Ideas are the right of everyone, execution is what makes the difference. China and Sydney executed
A: Not at all. I think the fact that people talk about them shows that it is important. We live in a world of “andand” not “either-or”. It isn’t we either become Mother Teresa and look after the world’s poor one by one, or we run a great sporting event. Life is much more complex than that. Sport is one of the few ways out for all of these people. It is a great equaliser. Q: How do you measure success from a branding or marketing perspective, and is this even done? More than 700 million watched the 2006 Soccer World Cup final in Germany, but did that translate into anything meaningful in marketing terms? A: We are drowning in the statistics. There are great economic justifications for all of these events which may or may not be true because they are based on forecasts and then on rewriting the past. What you do know is that Barcelona was redeveloped as a city because of its Olympics, that Auckland would not have the Viaduct if we hadn’t got the America’s Cup, that South African tourism and economic vitality have increased massively since they were able
to demonstrate that they had security under control. Q: Closer to home, great things have been promised from the Rugby World Cup. What is your feeling about its potential, and have the organisers got it right? A: Martin Snedden and McCully are doing a fantastic job. Most of the calls that have been made have been good for New Zealand, good for rugby. The next World Cups are going to go to gigantic commercial places. This is going to be the last great tour. I’m the chair of USA Rugby. Our guys are going to be living in Taranaki, in New Plymouth and they are excited. They want to see the real New Zealand, real grass-roots rugby. This will be a great opportunity to showcase New Zealand and our people. The real work, frankly, is not in 2011. We will get this right. The real task is how do we take advantage of this from a commercial point of view. How do we invite the movers and shakers to New Zealand and then show them that they should invest in New Zealand, recruit New Zealanders and have joint ventures with our companies. That we have intellectual capital that travels. That is one area I am a little concerned about. I am telling businesses here, don’t peak in October 2011. That is for Graham Henry and the boys. We have got to be peaking in the two years after because that is what will matter to New Zealand, when the World Cup is over. M Kevin Roberts is Honorary Professor of Innovation and Creativity at the Auckland University Business School. With thanks to the University of Auckland Business School Quarterly.
DECEMBER 2010
| management.co.nz | 15
NZIM: conflict management
TetraMap’s mirror image
conflict& diversity Valuing diversity: Jon and Yoshimi Brett.
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ike many of life’s “ah ha” moments, the underpinning of Yoshimi and Jon Brett’s TetraMap behavioural model is rooted in life fundamentals and natural simplicity. It owes something to ancient Chinese philosophy, more to the clarity of the brilliant mind of designer, architect and innovator Buckminster Fuller, and the rest to their personal observation of the behaviours of people employed by the organisations to which they consulted, over 18 years. The Bretts discovered early in their consulting careers that personal conflict was a major contributor to organisational waste and blighted progress. That understanding prompted them to seek an explanation and provide a simple but powerful metaphor to explain why conflict is so pervasive and integral to human nature. If they could explain the nature of behaviour, minds could perhaps be opened to more positive
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The New Zealand Institute of Management is working with Auckland-based behavioural consultancy TetraMap to enhance the effectiveness of NZIM training and development programmes. Reg Birchfield talked to TetraMap founders Yoshimi and Jon Brett about their approach to reducing conflict in organisations. possibilities, they reasoned. The extension of their thinking soon revealed that the critical issue in conflict understanding and resolution, one that challenges not just organisations but whole communities and countries today, is diversity. “When you can open up people’s minds to the value of people’s differences and understand why individuals are different and why those differences annoy them, that conflict invariably disappears,” says Jon Brett. Yoshimi started out using established personality profiling techniques to search for explanations as to why we are like we are. Companies used various psychometric models which attempted to put “people into boxes so they could understand them better”. What Yoshimi wanted, however, was to “make the learning enjoyable, accessible, reasonably priced and applicable across all levels of the organisational hierarchy”. The Bretts understood the value
and importance of diversity, but the word held little organisational pulling power. “It didn’t seem to mean anything. Until one experiences the huge value and benefits that come with diversity, it doesn’t seem to register,” says Jon Brett. “But the phrase ‘reducing conflict’ does register and it is just the reverse. In order to reduce conflict, you have to value diversity.” So their pitch to the market changed. The emphasis swung to explaining the nature of the problem and enlightenment about how to resolve it follows. Out of this rationale, TetraMap was born. So while reducing conflict is TetraMap’s core marketing message, the Bretts’ real focus is “to help people work more inter-dependently, and to accomplish that, organisations must value diversity”. TetraMap is a behavioural model that uses nature as a metaphor, mapping people’s ‘nature’ on a tetrahedron using the
four elements of earth, air, water and fire as personal descriptors. In that respect it is a mind-shifter, replacing the more traditional positive and negative language of, for example, “submissive” or “compliant” personalities. The metaphor is driven out into a wide range of applications from the nature of individual behaviour that offers insights into personal development, communication and relationships, leadership, change and conflict resolution to programmes on the nature of team strategies, planning and sales and service. It is a non-prescriptive model. “We try to provoke creativity,” says Jon Brett. “You don’t get answers. We don’t tell you what the solution is.” TetraMap is, he says, a tool designed to help individuals find solutions in a collaborative, complex and rapidly changing environment. Many behavioural models are based around four central pillars. And the Bretts’ adoption of Buckminster Fuller’s foursided tetrahedron provided the perfect extension of their earth, air, fire and water metaphor. Each element touches the other but there are not opposites in this unique structure which Fuller famously described as “the minimal structural system in the universe”. The structure, according to the Bretts, graphically explains how people are “just different” and don’t necessarily have “strengths and weaknesses”, a descriptor that often drives individuals’ perceptions of themselves and others into contrite or commanding corners. Since publishing their first workbook in 1995, the Bretts have taken their TetraMap learning tool to the world. They have created a global and local network of certified facilitators and licensees. The Bretts and their partners are consulting to some surprising organisations, including the Singapore Armed Forces. And now they are building their working relationship with NZIM. One Master TetraMap Facilitator, Jan Alley, and two Certified Facilitators, Lesley Coleman and Robyn Walshe, are NZIM trainers and facilitating TetraMap learning in their NZIM programmes. Walshe says that
over the past two or so years she has used TetraMap with more than 250 people to gain new insights around engaging with others. “Workshop participants – and coaching clients too – aren’t bogged down in theory,” she says. “It is the most dependable tool in my toolkit.” “We are very picky about who delivers TetraMap,” says Yoshimi Brett. “The most important thing about it is not the simplicity of the model, or that people get it and that they have a good time sharing it with others – it is the whole message about sustainability that sits behind it. By reducing conflict we can create more sustainable organisations.” For quality control reasons, the company’s international growth strategy has been organic rather than formulaic. The Bretts decided against the standard global distributor route. “We needed to find people that were passionate about TetraMap and who understood the importance of the message,” says Yoshimi Brett. “We only have three associate organisations. One each in the UK, Mexico and Germany.” TetraMap does not, however, lend itself to online learning without blending with face-to-face learning. “TetraMap is a learning journey,” she says. “Unless people see it and embrace it, it becomes just another fun workshop. It is about making connections, about having conversations and about sharing stories.” TetraMap, according to the Bretts, forces both user and learner to be creative in seeking holistic solutions. And that, they say, is the difference between their approach and more traditional behavioural learning programmes. TetraMap with NZIM as co-sponsors, will run an international “Making the Connections” conference – which they call a TetraHui – in Auckland in February 2011. The conference will feature high profile international speakers on behavioural change and organisational learning. They are all exponents of the TetraMap model. http://www.tetramap. com/read/tetrahui. M Reg Birchfield is a Life Fellow of NZIM.
LEADERS BUILDING LEADERS Our aim is to build management capability through Research, Learning, and Recognition Our focus is to: • Research leading management trends and practice and promote a constantly developing model of best management capability for New Zealand. • Enable managers and aspiring managers to participate in learning programmes, mentoring, and events that provide the information and experience they need to develop their capability. • To identify leading management role models and provide awards that recognise the career and educational achievements of managers. NATIONAL BOARD Phillip Meyer FNZIM (Chairman) BRIAN SOUTAR AFNZIM Gary Sturgess Life FNZIM Lloyd Davies FNZIM John Sandford FNZIM Cheryl Doig fnzim Lynda Carroll AFNZIM OFFICES National Office Acting ceo phillip meyer fnzim Box 67, Wellington 6140 Ph 0-4-473 0470, Fax 0-4-473 0479 Email national_office@nzim.co.nz National website http://www.nzim.co.nz Northern President: John Sandford FNZIM CEO: KEVIN GAUNT FNZIM, FAIM Box 6600, Wellesley St, Auckland 1141 Ph 0-9-303 9100, Fax 0-9-303 9109 Email kevin_gaunt@nzimnorthern.co.nz Website www.nzimnorthern.co.nz Central President: Phillip Meyer FNZIM CEO: Karin Callaghan FNZIM, FIPAA Box 11781, Wellington 6142 Ph 0-4-495 8300, Fax 0-4-495 8301 Email karin_callaghan@nzimcentral.co.nz Website www.nzimcentral.co.nz Southern President: BRIAN SOUTAR AFNZIM CEO: Joseph Thomas AFNZIM Box 13044, Christchurch 8141 Ph 0-3-379 2302, Fax 0-3-366 7069 Email joseph@nzimsouthern.co.nz Website www.nzimsouthern.co.nz
NZIM Foundation Chairperson: David Moloney FNZIM Secretary: Jim Thomson PO Box 67 Wellington, Ph 0-4-473 0470 national_office@nzim.co.nz
DECEMBER 2010
| management.co.nz | 17
M SUSTAINABilitY
Putting a price on ecosystems Every country in the world should be putting a value on its ecosystems, says the World Bank. Janet Ranganathan answers questions about this new global initiative and how it will affect economic development.
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he World Bank has launched a new programme that aims to put a value on a country’s ecosystems in the same way a country measures its national income and product accounts, or GNP and GDP. Janet Ranganathan, an expert at the World Resources Institute (WRI), says countries need to start measuring the value of nature and the benefits and challenges of setting up these so-called national ecosystem service accounts.
What are ecosystem services? Ecosystem services are the benefits that nature provides to people. Food, fresh water, timber and cotton for clothes are some of the most familiar and visible services. But there are other types of unseen services that we often take for granted, for example the ability of forests to sequester carbon and mitigate climate change and the way in which wetlands filter and purify water.
What are national ecosystem service accounts and why are they needed? Conventional measurements of national economic performance, such as Gross Domestic Product and Standard National Accounts, do a poor job of tracking stocks and flows of ecosystems and their services. A country can cut down its forests, drain its wetlands and pollute its water sources and none of this shows up in the national accounting system. There is therefore little incentive for 18 | management.co.nz | DECEMBER 2010
better management of precious natural resources. By giving these assets a value and including them in the national accounts, the hope is that what gets measured will get managed. Current macroeconomic decisions largely fail to account for natural assets, leading to decisions that degrade ecosystems. These new accounts will also raise awareness about the value of a country’s natural assets and increase public support for decisions that are better for people and nature.
What is the connection between ecosystem services and economic development? Economic development and ecosystem services are intertwined. We can’t really deal with one without dealing with the other. Unfortunately, the current mindset of society is to put economic development and nature in separate boxes, overseen by separate government agencies and separate academic disciplines. We think that protecting the environment is an impediment to development. We view it as a cost. Thinking about the environment in terms of ecosystem services can transform that mindset and help us see and value the environment as a series of assets or benefits that development in fact depends upon. By including ecosystems as assets alongside capital, labour and other commonly measured units in national accounts, governments will hopefully spur economic growth while sustaining or even growing natural assets.
What are some of the challenges of creating national ecosystem service accounts? Architects of green accounts must grapple with three measurement challenges: how to define standardised units, how to measure physical quantities and how to assign values. None of these tasks are easy. If the accounts are to be integrated into existing national income accounts, then double counting must be avoided. The chosen measurement units must also be quantifiable at the national level. Finally, the physical measurements must be converted into financial values. The pros and cons of various valuation approaches will need to be carefully weighed to avoid risking the credibility of the entire effort.
Are any countries already doing this? A number of efforts are under way to create national indicators of ecosystem health. The UK is conducting a National Ecosystem Assessment of the country’s natural environment in terms of the benefits it provides to society. The results of this could be integrated into national accounts. Emerging indicators like the Genuine Progress Indicator combine measures of the value of natural, economic and social capital. The European Commission, United Nations and others are exploring ways to define complementary indicators for GDP that address sustainable development. M
company profile
Expert PR the key to outstanding results The number one priority at Wright Communications is to help clients earn and protect enviable reputations. A successful structure of small dedicated client teams has enabled Wright Communications to become a trusted adviser to a wide range of organisations since it began in 2006 – these include some of the country’s largest corporates, successful not-for-profits, and flourishing small businesses. Company founder and managing director Nikki Wright says the firm’s comprehensive range of skills and experience means it is able to offer clients full service public relations advice and implementation. “A total understanding of clients’ needs is the key to the company’s delivery of outstanding public relations results,” she says. In most cases, the first client priority is to increase their profile through premium media exposure in front of their key audience, whether it be in specific newspapers, lifestyle or trade magazines, television, radio, or the new phenomenon of social media.
Enviable media contacts and an ability to think outside the square allow Wright consultants to devise and implement the correct media strategy for crucial opportunities such as major product or corporate reputation announcements, new staff appointments, thought-leader opinion editorials and executive profiles in business media. Wright Communications works with its clients to develop effective public relations strategies for each part of the organisation, which includes
comprehensive analysis of objectives, risks and mitigation, audiences, and step by step implementation to achieve the desired results. “This is coupled with a strategic messaging programme that reflects the long term goals of the organisation and positions a corporate vision and strategy,” says Nikki Wright. Nikki Wright says the firm assists clients facing public inquiries or litigation, corporate restructuring, senior executive appointments and departures and reputation issues. “When an unexpected issue occurs and the media comes calling, we swing into action to help a client manage journalists and get its messages across in a planned and effective way,” she says. From crucial early advice and strategic counsel to urgent media training for spokespeople, the development of key messages and timely media statements, and co-ordinating interviews, Wright Communications has the experience and expertise on hand to deal with any client issues in a professional way to prevent the situation escalating into a full-blown crisis. “It is crucial for PR practitioners to be calm under pressure, and be able to produce accurate work quickly. Our consultants are adept at helping clients deal with issues and protect their brand.” Nikki Wright says it is increasingly important for businesses to demonstrate and report on their corporate responsibility initiatives – Wright Communications’ specialist expertise in CR is in demand. “As conscious consumers assess products like never before, and businesses increasingly examine their suppliers and partners’ corporate responsibility credentials, effective communication becomes a critical factor in business success,” she says. In addition to its annual report-writing
Nikki Wright leads a team of highly skilled PR practitioners from the CBD office in Auckland’s Shortland Street.
“It is crucial for PR practitioners to be calm under pressure, and be able to produce accurate work quickly. Our consultants are adept at helping clients deal with issues and protect their brand.” capability, Wright Communications has years of experience in producing clients’ sustainability reports to global best practice standards, and challenging clients to increase their corporate responsibility. Because sustainability has been a bedrock philosophy since the firm’s inception, clients know Wright Communications walks the walk alongside them. “This is an increasingly important way for organisations to cement their reputation, and it is a vital part of an overall communications strategy,” says Nikki Wright.
Ph: +64 9 366 0040 . Fax: +64 9 366 0041 . www.wrightcommunications.co.nz Ground Floor, General Building, 29-33 Shortland Street . PO Box 90290, Victoria Street West, Auckland 1142
DECEMBER 2010
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M politics Colin james
Enemies of capitalism Rip-offs and amateurism in business damage capitalism just as surely as child-abuse accusations damaged the Catholic Church, says Colin James.
B
eware the enemy within. Business leaders might take a leaf from democrats’ phrasebook: the price of freedom is eternal vigilance. That is because the enemies of democracy and its freedoms are part of the democracy. The same goes for business. Many enemies of capitalism lie within. When capitalism’s leaders don’t expose and denounce those enemies, they risk the freedoms on which capitalism depends. A parallel is the great damage done to the Catholic church, not just by the child-abusing priests but by the bishops and cardinals who covered it up. That the Pope in earlier roles did some covering up will slow the recovery of trust and respect. This obscures the good the church does. As author and “faith adviser” to two United States presidents, Jim Wallis told Radio New Zealand on September 28: “Those of us who are people of faith have to be the first to ... say [religion] has been a force for sectarianism, for patriarchy, for division, for violence, [even though it is] also a force for healing and for good and for justice and for social movement.” As with priests, so with corporations. The activities of some can damage the system. They damage trust. Gary Hamel of London Business School told the BBC in May: “We know from surveys in the United States [that] only 12 percent think executives are very ethical or highly ethical.” Hamel thinks the financial crisis “drove an even bigger wedge between
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individuals and institutions” and caused “a steady erosion of trust”. Who needs socialists and anti-capitalist greens when capitalists do it to themselves? Trust is a critical ingredient of capitalism, according to right-wing political scientist Francis Fukuyama, who devoted a book to the topic in 1995. What happens when trust goes? Hamel: “When you become untethered, society will ultimately put some rules back on you.” And then capitalism works less effectively, for profits, employees and consumers. This is not a matter only of legality. Not many enemies-of-capitalism-within end up in court and many don’t deserve to. But that is not the point. Auckland commercial law professor Susan Watson wrote in September that directors on boards need to apply “care, diligence and skill” and “provide the good sense and leadership that those who repose trust in them justifiably expect”. So it is not just venality that defenders of capitalism need to speak out on (and they fall short even on that). It is also incompetence in its wider sense. Many voters don’t see the difference. Says Hamel: “The big institutions of society less and less represent their interests.” That is why the “difficulty of getting proof” defence for not speaking out, which one business lobby luminary uses, is unconvincing. Morality and ethics aren’t court matters. But the rip-offs and amateurism
in finance companies – and the “investor” group, including an ex-MP, who cynically creamed the South Canterbury Finance taxpayer guarantee – damaged capitalism’s standing, less spectacularly than the bonus-kings in New York and London but, in the local context, just as effectively. Those actions tell small investors and sacked employees that self-regulation doesn’t work. The miscreants do things that are perfectly legal, perfectly in conformity with Adam Smith’s “invisible hand”, but also perfectly inimical to social order and decency. Smith himself bothered about that. As Hamel says: “There is a hole in the soul of business.” The political response, by voters and parties, is to regulate. Labour here has moved some way back towards the more regulated pre-1984 state. But too much, or badly designed, regulation is bad for the small investors and employees. So if leaders of corporations and business lobbies caned those within capitalism who damage trust, they would be acting not only in their self-interest but in capitalism’s and the public’s interest. Perhaps it is time for a “defender of capitalism” category in the Top 200 awards. Business leaders might find voters – and parties – then get in behind. M Colin James is New Zealand’s leading political commentator and NZ Management’s regular political columnist.
anthony drake legal M
Contracting under the spotlight The new “Hobbit” legislation has once again highlighted the uncertainty that exists in determining who is an employee and who is a contractor.
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ith speed reminiscent of Tolkien’s Black Riders, the Government passed legislation to help the film industry keep the production of The Hobbit in New Zealand, but there are wider implications for other businesses, says Anthony Drake, a partner at Kensington Swan. There was an important prequel to the recent events, Drake says, in the first employment case to go to the New Zealand Supreme Court: Bryson v Three Foot Six Ltd [2005] ERNZ 372. Bryson was engaged as a model-maker on the Lord of the Rings trilogy. The contract said he was an independent contractor. When his services were no longer required and Peter Jackson’s company, Three Foot Six Ltd ended his contract, Bryson claimed that he was an employee, and as such, had been unjustifiably dismissed. On appeal to the Supreme Court, Bryson was successful in his claim. The court considered that the company had a high level of control over him (for example, he was required to work set hours), that he was integrated into the business (the company provided the training and tools he required to do his job) and that he was not providing services on his own account, despite being responsible for his own tax affairs. The real nature of the relationship was determined to be one of employer/employee, despite the written contract stating otherwise. Section 6 of the Employment Relations Act 2000 trumped the parties’ agreement. Now that Warner Brothers, through Three Foot Seven, is back in New Zealand and seeking to engage workers for The
Hobbit, it was understandably concerned about this level of uncertainty in its relationships with these workers. It is this grey area the legislation addresses, says Drake. “Its effect is that persons working in the film industry are deemed not to be employees, unless there is a written employment agreement recording the parties’ agreement that the worker is to be an employee. Since 1992, a similar clarity has existed for the real estate industry.” However, the distinction between an independent contractor and an employee is an important one and can only be answered by examining the “real nature of the relationship”, says Drake. An employee is afforded the protections of the Employment Relations Act and related legislation, including minimum standards of employment, the right to bargain collectively, and the ability to bring a personal grievance if dismissed. An independent contractor has no such protections. Disputes are dealt with by the Disputes Tribunal or District Court, and not by the employment institutions. Contracts can be terminated by giving the requisite notice, with no need to justify the termination. In contrast, an employer needs to have substantive grounds for terminating an employee’s employment and follow a fair and proper process. “That is the intent behind section 6 of the Employment Relations Act 2000, and to deny businesses the ability to engage workers as independent contractors and not have the real nature of the relationship questioned,” says Drake. “It stops businesses effectively contracting out of the protec-
tions available under employment laws.” While the film industry has been afforded certainty with regard to workers in its industry, it is a timely reminder for other businesses in managing independent contractors, says Drake. Important factors include: • Having the right written contract in place. While the label ‘contractor’ will not be determinative, a carefully tailored contract can provide evidence of the real nature of the relationship and provide strong disincentives for the worker to subsequently claim that she or he is an employee. • Insisting an independent contractor provide GST invoices. Where possible, enter into the agreement with the worker’s company. • Ensure that your managers understand the distinction between employees and contractors and manage the different relationships appropriately. The NZ Actors and Equity Union and CTV joined forces with the Australianbased Media, Entertainment and Arts Alliance, to target the Hobbit project. The unions’ strategy unfolded like a Shakespearean tragedy, says Drake. “The precept of good theatre is getting the audience to understand and sympathise with the situation. Far from it. There has been a strong public backlash against the union movement over the black-listing of the Hobbit film production in New Zealand. “Plainly the unions’ strategy was the wrong one. This may cause the union movement to rethink its future strategies before embarking on industrial action. M DECEMBER 2010
| management.co.nz | 21
Deloitte/ Management Magazine
TOP 2OO A Bold Spirit
DESPERATELY SEEKING BUFFALO HUNTERS.
While living off low hanging fruit from your own backyard might ensure your temporary survival, there comes a time when the tree will be bare and you’ll start considering the nutritional benefits of bark. New Zealand needs businesses bold enough to pursue bigger game from new and exciting hunting grounds. So, if you’re unsure of which spear to choose or where to hunt, you need to talk to us. www.deloitte.co.nz Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity. Please see www.deloitte.com/nz/about for a detailed description of the legal structure of Deloitte Touche Tohmatsu Limited and its member firms. © 2010 Deloitte. A member of Deloitte Touche Tohmatsu Limited.
Top 200 Awards
2010
Contents 24 Understanding the New World: Bold Conversations 31 Against the odds: Top 200 Companies rise to new world challenges โ ข Around the Top 200 sectors
Executive of the Year Mark Waller.
Young Executive of the Year Claire Szabรณ.
Visionary Leader Douglas Goodfellow.
Chairperson of the Year Alison Paterson.
36 Deloitte/Management magazine Executive of the Year Mark Waller 39 Deloitte/Management magazine Company of the Year Beca Group 42 NZIM/Eagle Technology Young Executive of the Year Claire Szabรณ 47 QBE Insurance Chairperson of the Year Alison Paterson 49 Kensington Swan Responsible Governance Award Vodafone New Zealand
61 Judges 62 Criteria 63 Deloitte Viewpoint 65 A-Z Index
54 Marsh Most Improved Performance Award Restaurant Brands
66 Top 200 Companies 80 Top 30 Financial Companies
56 Workbase Best Growth Strategy Sky Network Television
83 Year-on-Year Comparisons
60 Designworks Visionary Leader Douglas Goodfellow
86 Performance by Sector
84 Analysis 88 Missed, Merged, Miscellaneous
DECEMBER 2010
| management.co.nz | 23
Bold
conversations As part of this year’s Deloitte/Management magazine Top 200 campaign “Understanding the New World’, NZ Management analysed six major contemporary issues and opportunities for business.
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he world will never again be as we knew it before the global financial crisis. We teetered on the edge of a precipice, staring into the chasm of the total failure of the world’s financial systems. Globally we have been forced to mature, and we learned some hard lessons – in banking, in ethics and about greed. It has taught us that even in this country, far from the world’s wealth centres, we must be constantly examining our economy, our ethics, our drive and our innovation to ensure we prosper and that we can compete in this new world. These pages aren’t just about just a group of top-performing companies that are the envy of other businesses – they are also a record of an incredibly smart and powerful group of individuals who hold the future of New Zealand in their hands. As we gather all these people in one room for a night of celebration and networking, we are also acknowledging the forces that help us survive in this new world of business.
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Over our series of six themes, we’ve looked at this new environment and here’s what we found: Leadership: We’ve learned that even though we’re busier than ever, the best bosses are first of all leaders of people, then storytellers, role-models for the behaviour they want to see, transparent, honest and ethical. Banking: We’ve discovered that banking is going back to the people, with a resurgence in neighbourhood banks and an emphasis on building relationships and forming networks. Technology: We’ve learned that all of life is a conversation. If we want to talk to our customers and our contacts, we have to learn new, bold ways of talking through technology, using social media like Facebook, Twitter, blogs and Linked In. Brands: As the consumers of this new world become more sophisticated and cynical, brands need to work harder and in different ways. Our search for New Zealand’s Most Reputable Organisations discovered that ethical behaviour and honesty
Banking
are key attributes to give a brand standing among its peers. The environment: New Zealand has cultivated an image of this country as clean and green, so why are we not at the forefront of the cleantech revolution? Innovation: “We punch above our weight but the rest of the world isn’t waiting for us to turn up. We’ve got to get out there.” - Kensington Swan chairman, Clayton Kimpton. In this, the final chapter in this year’s Top 200 campaign, we asked leading New Zealanders to peek into the country’s future.
Leadership
Rt Hon John Key, Prime Minister
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ne of the best parts of my job as Prime Minister is travelling throughout the country, and meeting all sorts of people doing extraordinary things. They make me optimistic for our country’s future. During last year’s global economic recession, entrepreneurs, businesses, and people in our communities showed excellent leadership. I would like to thank all of you who went the extra mile to help others get through. It proves just what New Zealanders can achieve if we set our minds to it. We are a gritty little country of people who dig deep when the going gets tough and work together. As Prime Minister, I worked hard to lead New Zealand through the recession. New Zealanders needed strong economic leadership, and that is what the National-led Government delivered. Our economy is recovering now, but the need for strong leadership is no less than it was a year ago. That’s why my team is working hard to build on the recovery of the economy. There’s no better time than now to unleash your potential as a leader and an entrepreneur. So I encourage you to get out there, strive for excellence, and find the leader within.
Dr Alan Bollard, Reserve Bank Governor
B
anking in New Zealand has been traditional in focus and this will always be a cornerstone of the New Zealand economy. The Global Financial Crisis (GFC) taught Northern Hemisphere banks lessons about problems with risk, governance and capital quality; it taught us more about the fragility of funding, hence our new liquidity policy. It has worked well having Australian-owned banks through the GFC, but Australian domination does bring its own challenges. Basel III (new rules that require banks to hold top-quality capital totalling seven percent of their risk-bearing assets) still has some way to go to sort out issues, and then we will decide what is relevant for New Zealand. The CUBS (Credit Unions and Building Societies) have come through the crisis in reasonable shape due to conservative lending and loyal customers. But the deposit-taking finance company sector is tiny and a mess, with major reconstruction and a re-building of balance sheets ahead. Some of these companies previously provided high-risk equity-type funding for speculative property development. To meet this need in the future, we are starting to see securitisation and other funding forms. I believe we won’t achieve full economic recovery until the private sector takes over as an engine of growth and we start to see moderate growth in credit. Ultimately the financial system is also a reflection of our national savings and consumption imbalance. More saving could mean less foreign funding, less vulnerability, and higher New Zealand equity.
DECEMBER 2010
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Technology
Brands
Rod Drury, CEO, Xero
Sir Stephen Tindall, The Warehouse founder
I
think New Zealanders are very aware of technology – what’s coming, and what’s new on Google and Facebook makes the papers the same day. But in terms of accessibility, we’re seeing more and more stuff that’s not available to us; for example we missed the Kindle – it just passed us by – and there are a lot of applications we’re seeing now that we just can’t access. iTunes in the Cloud is about to arrive in the US, but we won’t be able to use it here and the new Skype multi-party video conferencing, Skype 5, doesn’t really work in New Zealand. I’m very concerned about this growing digital divide. It’s becoming obvious that the way that we’re doing business isn’t changing to the same extent as companies overseas that are operating in the same business are changing, and it will have an impact. The way to fix this is international broadband. We need to put New Zealanders on the same platform as the US. There are some great things coming in the future: We’re starting to see technological changes that I’m excited about, like the Android information ‘widget’ that will let you see all the bits of information you need in your personal and professional life in one place. What we’ve seeing with Android and Windows 7 is more information-centric than ever before, with a personal information dashboard that has the weather, time, what the latest tweets are, RSS, and even my office CRM. The next big thing will be near field communications which will become a payment system; just touch your phone to an EFTPOS terminal – that’s the next big thing. Changes to the banking system are quite a long way ahead and will improve with high penetration of mobile phones.
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W
hat makes a successful brand in my opinion? A brand is not a brand without a huge amount of behind-thescenes activity. When we started The Warehouse the logo said The Warehouse, Where Everyone Gets a Bargain. This meant nothing until we started delivering on that promise. It takes time to build a successful brand. Securing a good reputation is a lot of hard work. It comes from a good idea transformed into a strategy and a business plan and then excellent execution to ensure you deliver the promise. To me the word “brand” equals reputation. People buy either a product or a service, not a brand. However they do recognise either a good or poor product or service through memory recall by recognising the brand name. We’ve seen how the brand Sanlu was destroyed over night when a number of Chinese babies died and the health of hundreds of thousands was severely jeopardised. As a result the reputation of that company was destroyed along with its brand. To me another interesting brand that comes to mind is McDonald’s. This company has had to struggle over the past decade as a result of its incredible efficiency in producing food at an amazingly low price. In the US this resulted in a whole new way of eating and has been a contributor to their national obesity problem. To recover, McDonald’s has had to put in a massive effort to offer healthy foods as well as its traditional burgers. You have to be aware how reputation equals brand, how it takes a huge effort to develop a trusted brand – and how quickly it can be destroyed.
The Environment
Innovation
Greg Cross Chairman, The Icehouse
Jeanette Fitzsimons, former Leader Green Party
N
ew Zealand has huge natural advantages in its claim to be “100% pure” or clean, green and sustainable. If we build on those advantages we could even make that claim true. It is not true at the moment. Our electricity is already around 70 percent renewable. We have an excellent wind resource, big geothermal potential, an excellent tidal energy resource, the land and expertise to grow wood well, and a moderately good solar input. We haven’t inherited overpopulation or a lot of dirty industry from the past. So it is heart-breaking that our water quality is steadily deteriorating as a result of runoff from intensive land use and overuse of irrigation, and to see large-scale plans for extracting huge quantities of lignite, which would dwarf our other climate changing emissions if it goes ahead. In a world of dangerous climate change and serious resource shortages, the future belongs to countries and industries that can meet the demand of discerning markets for food, beverages and industrial products that respect nature, the people who work for them, and their local communities. Firms are finding that if they cut waste, use energy, materials and water more efficiently, reorganise their transport patterns, replace toxic inputs and involve their workers more they actually improve their bottom line too. New Zealand could be world leaders in sustainability science, as well as in clean technology, whether it is in dairying, tourism, fishing, forestry or manufacturing. We could embrace the clean tech revolution – or carry on down the dirty tech path. It’s our choice.
T
wo key ideas from a couple of well known innovators really resonate with me as I think about innovation in New Zealand. One is from Peter F Drucker: “Entrepreneurs innovate. Innovation is the specific instrument of entrepreneurship. It is the act that endows resources with a new capacity to create wealth.” New Zealanders have always been entrepreneurial but the past 10 years has seen the establishment of a series of entrepreneurial ecosystems and capability building organisations that are clearly demonstrating how smarter, more connected entrepreneurs can make a significant impact on economic growth. Organisations like The Icehouse, which grew out of the University of Auckland’s Business School as a direct result of the Knowledge Wave conference in 2000, are turning clever New Zealand entrepreneurs and their businesses into internationally competitive firms that employ more people, and deliver more export earnings. This is being achieved through a whole raft of programmes, but the one that really stands out for me is the Icehouse Owner Manager Programme targeted at New Zealand’s heartland entrepreneurs. This, more than anything I have ever been involved in, creates more raving fans, changes the growth trajectory of more businesses and lifts the aspirations of more of our entrepreneurs on to the world stage. The other quote comes from Steve Jobs: “Innovation has nothing to do with how many R&D dollars you have. It’s about the people you have, how you’re led, and how much you get it.” This highlights the opportunity for New Zealand and its growing population of internationally capable entrepreneurs. We should be spending way less time worrying about how our R&D dollars are being spent in research institutions and putting more time and effort into making sure that we are building the right connections and support for our entrepreneurs who really get it! . DECEMBER 2010
| management.co.nz | 27
“People start to generate passion about a great piece of design thinking” “When we’re trying to make our mark in the global field, or in the world, you have to have really unique points of difference that have real benefits. If design thinking isn’t a key part of your business, you won’t get there. We want to be a world leader in what we do, and to do that, design thinking has to be central to our business.”
Rick Fala, CEO, Methven
designworks.co.nz/designthinking
Each award we’ve won had over 750,000 winners 2009 Bank Of The Year – New Zealand The Banker Magazine
Best Overall Value Bank (5th Year Running) 2010 Sunday Star-Times CANSTAR Banking Awards
Emerging Large And Corporate Business Award
NZI National Sustainable Business Network (SBN) Awards 2009
New Zealand’s Most Trusted Bank (4th Year Running) Reader’s Digest Most Trusted Brand Awards 2010
Education Award And Commerce Award 2010
Telecommunication Users Association of New Zealand (TUANZ) Innovation Awards
Best New Zealand Internet Banking Site 2009 Global Reviews of Melbourne
Best In Class Banking – Springload – Kiwibank Website Interactive Media Awards (IMA) 2009
Best In Show And Gold Sustained Success 2009
New Zealand Advertising Effectiveness Awards – Agency: Ogilvy
We’re proud of what we’ve done for all of our customers, but we’re not stopping there. We’re going to keep challenging the status quo to make banking better for all Kiwis.
www.kiwibank.co.nz
Kiwibank Limited.
Ogilvy/KB1290/NZM
Against the odds Top 200 Companies rise to new world challenges New Zealand’s largest companies improved pre-tax profits despite lower revenue in 2010. It was, in the words of the Deloitte/Management magazine Top 200 Awards judges, a year of consolidation. By Neil Prentice and Reg Birchfield.
D
espite the chal lenges of a domestic economy struggling to recover, there are signs that the organisational shakeout induced by the global financial crisis has at least some of our largest companies refocusing their strategies to become more innovative and efficient. Revenue performance overall was flat for our top 200 corporates, with total turnover down a tad under two percent this year to $147.5 billion. The top 30 financial institutions fared much worse – with their revenue dropping a shade over 18 percent to $29.4 billion. Profits before tax for the Top 200, however, were up 37 percent, clawing back part of the big hit our largest companies took on their collective bottom lines in 2009 when pre-tax profits plummeted 51 percent. This shows that our biggest enterprises still have a way to go to recover the ground lost after the GFC plunged the world into a recessionary spiral. EBITDA, included in our analysis of company performance for the first time this year, was up 8.1 percent for the year.
The Top 200 companies also contributed more to the government coffers – with tax paid to the consolidated fund up 150 percent from $1.3 billion to $3.28 billion. This meant total after-tax profit was down marginally by 0.6 percent. Tax changes were a significant factor in this and included substantial deferred taxation provisions by companies with balance dates after May 2010, resulting from the Budget’s abolition of building depreciation allowances. The profitability of the Top 30 financial institutions slipped an eye-watering 86.6 percent after tax while tax paid climbed 118 percent – in large measure a reflection of the impost on the major banks of the Inland Revenue Department’s successful court action on their tax practices. The top six banks might own 89 percent of the assets in this sector but generated negative profits, with two of the “big five” suffering substantial losses resulting from provisioning for bad loans. However, the banks results are mainly for the 2009 year. They are only now reporting much improved preliminary 2010 results, past the Top
200 compilation deadline. In general, the companies that performed well in 2010 adopted “classic tough times” management strategies says Neil Paviour-Smith, managing director of Forsyth Barr and one of this year’s Top 200 awards judges. “They focused on costs, introducing efficiencies and addressing balance sheet issues.” The bigger the better Bigger companies have generally weathered the storm better than the small business sector which generates its revenue predominantly from domestic markets such as retail and building. These businesses are often financed off household balance sheets and don’t have the same capital or resources to battle through tough times when cash flow is tight. Evidence of this reality is also reflected in the performance of the larger companies within the top 200. This year the top 50 of our 200 companies generated 70 percent of the revenue and 86 percent of the profits. They also own 67 percent of the assets. Last year they generated the same revenue percent but DECEMBER 2010
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Janine Smith... “Boards have become more involved in the new business environment.”
Roger Kerr... “It’s a great environment to be exporting.”
Neil Paviour-Smith... “The big issue is our flat economic performance.”
32 | management.co.nz | DECEMBER 2010
earned only 66 percent of the profits on 64 percent of the assets. The bottom 150 companies were, therefore, hit more heavily. With some notable exceptions, New Zealand’s largest companies have not carried the high debt levels that were a feature of the late 1980s and early ’90s recession when consequently it took them longer to recover, says Roger Kerr, director of Asia-Pacific Risk Management and another Top 200 judge. “Because most of our big companies weren’t so highly geared this time round, they have been able to make decisions and cut their cloth to the environment more quickly and effectively.” Balance sheet issues and non-performing assets were, by-and-large, addressed in 2009 as investors and financiers put debt levels under the spotlight. Another Top 200 judge Janine Smith, a professional director and principal of governance advisors The Boardroom Practice, thinks companies that were over geared for the new low-risk business and investment environment that emerged following the GFC managed the debt reduction process competently. “Most have worked well with their banks and there hasn’t been the slash and burn approach that we’ve perhaps seen before. Banks recognised that they have to work with their customers and this helped maintain a stable business environment,” says Smith. As Kerr also points out, New Zealand hasn’t experienced the big corporate failures that had a destabilising effect in many other countries. “The obvious exception was the finance companies but that was a fraught business model that would eventually have tipped over regardless of the GFC,” he says. Smith thinks stronger board leadership has also helped pull corporate performance round more quickly. “Boards have become more involved in the new business environment without interfering with management. They are acting more like a resource board and adding value,” she says. There has, in her opinion, also been
more carefully managed and measured cost cutting rather than knee jerk reactions to the difficult economic environment. She believes boards learned something from past mistakes and so companies didn’t lay off skilled labour unless absolutely necessary. Management looked to other solutions such as putting staff on shorter hours or fourday weeks. “There’s been a more collegial approach with workforces prepared to be more flexible,” says Smith. Overall, it was a steadying year for many of our major companies. The aged care and healthcare companies continued to make the most of opportunities presented by our aging populations. Abano Healthcare, Ryman Healthcare and Ebos Group grew strongly and managed their companies so well they were able to turn additional revenue into equally strong profit results. Kerr believes many Top 200 companies exposed to the domestic economy adapted well to market conditions which continued to be challenging. “The retail sector is a good example. Despite a very tough environment where margins were squeezed and retail spending was flat, most of our bigger retailers have done okay.” A new way of exporting It was also a challenging year abroad, with exporters confronted with both price and exchange rate volatility. “But, with agriculture commodity prices at record levels and terms of trade at 30year highs, it’s a great environment to be exporting out of New Zealand,” says Kerr. The country’s largest exporter and most profitable business, dairy giant Fonterra, lifted its revenue a healthy 4.5 percent to pass the $17 billion mark. It also milked the marketplace of an additional $75 million in profits to nudge within $15 million of the $700 million mark. That’s an excellent result, given the state of many of the world economies. A number of our other top 200 companies are also now performing better on the global stage, according to
Paviour-Smith. “There are some good examples of companies that aren’t just trading internationally in a small way. They are generating the bulk of their income offshore and growing strongly in markets that, in some cases, have been under the same sort of economic pressure as New Zealand.” There has also been a noticeable shift in the whole concept of “exporting”. Major commodity exporters such as Fonterra, kiwifruit marketer Zespri and the meat companies will obviously continue to process most of their products in New Zealand, but the model is changing for a growing number of New Zealand companies that are moving to manufacture more offshore. They retain head offices, undertake research, product development, marketing and design in New Zealand but manufacture in countries where they can source the most competitive price to the best quality. Sadly, this is often no longer in New Zealand. A new breed of “intellectual” exporters is also earning valuable foreign exchange by selling their talent and expertise internationally. There are few better examples of this than home grown engineering consultancy Beca. It joined the Top 200 list for the first time this year and went on to win the Deloitte/ Management magazine Company of the Year Award. Beca is a global success story, earning 40 percent of its annual $366 million in consultancy revenue offshore.
Looking ahead Given prevailing local and global economic conditions, the performance of New Zealand’s Top 200 companies might be considered as good as could be expected. But that is not good enough to propel the country with great enough confidence into the brave new world of business we find ourselves in. A lot more innovation, leadership and global strategy will be required to deliver anything like the results the current National Government is seeking. New Zealand’s economic growth is still lagging forecasts. True, commodity prices are strong. But we need more companies like Beca to provide greater stability and diversity – more new world enterprises. Going forward, the challenge for our biggest enterprises will be to launch from their more stable platforms, grow revenue and position themselves with the right strategies and resources to take advantage of new global opportunities, particularly in Asia and around the Pacific which are home to the world’s strongest performing economies. “You cut costs in a tough environment,” says Kerr. “That has been done effectively by many of our larger companies. But they can only do that once. The next step is to grow the top line. The economic environment is looking reasonably positive for the next couple of years, maybe more so in the export sector where prices are up and less so in the domestic environment which is
constrained by deleveraging. But the domestic economy will eventually come right.” Paviour-Smith thinks the global challenges lie more with the high levels of debt in the government and household sectors. The corporate sector is, by comparison, relatively under geared. “The big issue for New Zealand is our flat economic performance compared with the growth that Australia and other neighbouring Asia Pacific countries are generating. We must do better internationally. It is, however, encouraging that there is a higher degree of confidence about expanding globally and succeeding. There are signs of a maturity in the big business sector that has been missing in the past,” he says. All three Top 200 judges, but particularly Kerr, were positive about next year. “Every time export prices go up, and that is happening right now, GDP growth follows and we do well. Many of our top 200 companies have done the hard work over the past two years. They are well positioned now to optimise the opportunities that are definitely out there,” says Kerr. Our major enterprises have therefore seemingly come through the first round of the new post-GFC business environment with a tick for effort. However, the real test as to whether we can change and grow is still to come. While this year’s top 200 results throw up some encouraging signs, they need to be more than just straws in the wind. M
Keep ahead of the times… NZ Management readers can now also receive weekly updates tess on te on the he latest la est in i management news, thinking, trends and practices through Ex Update, EExecutive xecutive ecut ve Up U Update d te, a da weekly e-newsletter sent to your In Box every Friday. If you’re not receiving Executive Update and would like to join oin iitss growing oi growi g database of thought leaders email db@executiveupdate.co.nz. .nnzz. For advertising enquiries or more information contact Clara IIqbal b l aatt admanager@executiveupdate.co.nz or phone (09) 271 3711 orr 021 21 99300 887. 887
DECEMBER 2010
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Around the Top 200 sectors T
here was a wide variation in performance from the business sectors covered by our Top 200 list again this year but, generally there were few signs of increased optimism until well into the year. Cash flow remained tight through 2010, with domestic consumers reluctant to take their hands out of their pockets. Among industries that experienced some lift in 2010 were the dairying, forestry, energy, food and packaging. Agriculture Primary production, the biggest sector of our economy and in our Top 200, was substantially helped by international commodity prices which, while still volatile, were at or close to record levels for much of the year. The dairy industry, well led by Fonterra, had a very strong year and most of the big New Zealand subsidiaries of multinational forestry companies recovered from their losses of the previous year. Our top five businesses in this sector boosted revenue by $1 billion while profitability almost trebled. While global prices for sheep, beef and wool also reached historically high levels, farmers in these sectors are still struggling to achieve acceptable returns. Agricultural servicing is a competitive market and it did not get any easier in 2010. Automotive The automotive repair business was reportedly the worst it has ever been
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through much of 2010. Car sales, however, were reasonable ahead of the GST increase, although many second hand car sale operators fell out of the nest. New cars, particularly the more expensive lines, continued to sell though not at the old levels. Revenue in the top five companies in this sector fell $150 million but profitability improved slightly. Communications and media It was a hell of a year in the comms industry, with revenue from the 13 companies in this sector slipping over half a billion dollars while profits dived from $700 million last year to a cumulative loss of $166 million in 2010. Only Telecom, Vodafone and Sky Network TV reported profits, and only Sky recorded an increase. Telecommunications continues to be a challenging, competitive business with the only certainty being constantly changing technology. Print-based media suffered, in some cases seriously, while the printing industry felt the pain of the transition to online communication. Advertising bookings were down across all media until television ad sales started to lift as the year progressed. Classified advertising continued its electronic migration. Energy Our energy sector, encompassing oil, gas, electricity, water and mineral companies, turned in a much improved profit performance. While sales from its collective 21 companies were down by over $3
billion to $23.3 billion, tax paid profits jumped from just under $1 billion to $1.6 billion. New Zealand subsidiaries of the multinational petroleum behemoths have always featured highly in the Top 200 list in terms of turnover. And for this year’s list, while their revenue was down, they turned in much improved profit performances at their December 09 balance dates. Shell NZ led the way, turning a small loss the previous year into a $331 million profit, although that included a $175 million gain from selling out of Fulton Hogan. It was an up and down year for our electricity suppliers, with some like Meridian showing big profit increases while others had their bottom lines severely pinched. processed FOOD / Beverages The wine industry’s hangover really came on in 2010. The wine glut savaged prices, profits and land values. However, others in the food industry continued to benefit from consumers’ basic need to be fed and watered. Food manufacturing, however, came under pressure from record high commodity prices, particularly for sugar. Across all 25 companies in this sector, revenue was up $400 million while profitability increased by $80 million. Manufacturing Despite a challenging exchange rate regime, the manufacturing sector started something of a bounce back in 2010. Exports to Australia had climbed 20
The primary production sector had a strong year, led by the dairy industry.
percent on last year by September, helped by an Aussie dollar that has strengthened – in contrast to the currencies of many of our other major trading partners. Sales of specialist industrial electronics were strong and hi tech manufacturing generally returned to better times. Overall, manufacturing is still some way from healthier levels of two years ago and continues to lose ground in more traditional industries to cheaper labour markets in other parts of the world. While profits for our top five manufacturing companies edged up, revenue and profit performance from the total sector continued to decline.
Retail and Wholesale The FMCG market started to pick up a little in 2010 but generally retailing was tough in an economy and domestic market that was going nowhere, very slowly. Some major retail clothing, sporting goods and homeware chains improved their efficiency through cost cutting and enhanced management but margins were slim, revenue static or down and profit improvements hard to come by. While profits for some of our larger retailers increased, these were the exception and overall profits for the 32 companies in this sector halved, down almost $200 million. M
CELEBRATING SUCCESS IN THE 2010 TOP 200 BUSINESS AWARDS
A leAding investor in And operAtor of heAlthcAre And medicAl services businesses in new ZeAlAnd, AustrAliA And AsiA D E N TA L | A U D I O LO G Y | R A D I O LO G Y | O R T H OT I C S | B R A I N I N J U R Y R E H A B I L I TAT I O N | PAT H O LO G Y
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Deloitte/Management magazine Executive of the Year
Mark Waller New-world leader
W
hile Mark Waller, the Deloitte/ Management magazine Executive of the Year, has been around a long time he is very much the face of the future of New Zealand business. As managing director of Ebos Group, he heads one of a growing number of “smart” companies which have developed a highly successful business model in New Zealand and then expanded internationally. Like Beca, the Deloitte/ Management magazine Company of the Year, Ebos’ success has been based, not on what it produces, but on the exceptional services it provides to customers. Waller is no flash in the pan. Like our other two Executive of the Year finalists, he has a long association with the company he leads, having been its chief executive for the past 23 years. Over time, he has steadily built Ebos Group into a billion-dollar success story and a medical market leader. Under Waller’s leadership, Ebos has consistently turned in outstanding performances while growing to become a truly Australasian enterprise, the Top 200 judges said. “His understanding of organisational culture and how to successfully integrate new acquisitions into the group is exceptional,” they said. Under Waller’s stewardship, Ebos Group has become the major supplier in New Zealand of medical consumable products and pharmaceuticals to the total health industry, including public hospitals, GPs, aged care centres, and retail pharmacies. Having established a
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strong position in New Zealand, Ebos is now endeavouring to emulate that success in the Australia market. Waller, who follows last year’s winner Rob Fyfe as the Deloitte/Management magazine Executive of the Year, says Ebos recognised back in the early 1990s that it couldn’t be a “product-centric” company. Instead it focused on bridging a gap in the health market between what patients require through the various stages of their lives and how health providers deliver what is needed at the right time to service their customers. Embracing new technology has been an important part of that and Ebos has become one of this country’s largest ecommerce trading organisations, with every pharmacy and hospitals able to order online. “We’re quite unique in having a multitude of channels to market, where we have the flexibility to shift,” says Waller. “So if the Government decided, for example, to have more aged care in homes, we have the capability to actually deliver more of that, right now.” Waller says Ebos has also recognised that what is successful today is unlikely to be so in five years’ time. “Life is moving so quickly in so many areas today, you probably only get a two or three-year time frame before the game moves on and you have to do things differently. Every five years or so we reinvent the organisation and reshape it. I think every organisation in a dynamic field – and healthcare certainly is – has to do that.” For Waller, who is a Fellow of the
New Zealand Institute of Management, success is about building and creating things through people. “I’m a believer that regardless of the circumstances, whether there be a recession or a boom, it makes absolutely no difference to the management style you need to adopt. I have a management style that I call ‘voluntary co-operation’ – if I can’t convince somebody to follow and contribute, then I’ve failed as a leader. “I’ll go out of my way to explain to people why we want to do something, and if they disagree with some of those things, then I will explain why we think we need to do them. It’s not about forcing anybody to do anything; your staff have to believe
in what you want to do,” says Waller. “If you get that right, people come along on the journey; they feed off each other, and you create a positive snowball.” Waller says his background has made him more flexible as a person and as a leader. “All of us when we are kids are programmed a certain way, and I was lucky to have grown up as an expatriate in a colonial society in Fiji. I mixed with a lot of different cultures, went to foreign
schools, and I saw that there is not one way of doing things. It made me very adaptable.” Waller regards adaptability as an essential component to success in today’s fast moving new world of business. “Business is not prescriptive, it’s a live thing. We can over plan. You’ve got to be able to feel and sense and react quickly to things. That’s more important than the mission statements.” M
Judges’ Comments: Winner
Mark Waller
Finalist
Alan Clarke
CEO and Managing Director, Ebos Group
Managing Director, Abano Healthcare Group
Mark Waller is, said the judges, the person most responsible for the sustained and outstanding growth and profit performance of Ebos Group. He has been at the helm of the company since 1987. In that time he has developed and implemented a successful growth strategy – based primarily on strategic and synergistic business acquisitions. Just how adept he is at the integration process is borne out by the results achieved under his leadership. Ebos is now New Zealand’s leading medical consumables enterprise, and is also operating successfully in a highly competitive Australasian marketplace. He is a hands-on CEO who has guided the company through a critical period in its growth and development. His leadership has been outstanding, the judges said.
Alan Clarke has implemented the Abano Healthcare Group’s winning development strategy that last year resulted in his company winning the Deloitte/ Management magazine Top 200 Company of the year Award. There is probably no more tangible testament to his success as a managing director. Clarke is, said the judges, a courageous MD who knows when to buy and when to divest assets for the good of the Group as a whole. He has been critical to the building of a business that became New Zealand’s largest private specialist medical and healthcare organisation. He has guided Abano through a period of dramatic growth without missing a performance beat for his shareholders. He has successfully delivered the business to a point where it looks set to begin a new phase of development – still under his leadership.
Finalist
John Fellet Chief Executive, Sky TV John Fellet is a highly effective, single minded and focused chief executive who fights to keep a low profile in the high profile media world. He is simply and steadfastly dedicated to delivering outstanding results for Sky Network TV. Originally the company’s chief operating officer, Fellet was appointed CEO in 2001. Since then he has systematically built a brilliantly successful enterprise. Fellet’s leadership skills are reflected in the company’s employee-focused culture. He consistently acknowledges that the personal performance of his employees accounts for more than 50 percent of his company’s success. He is, said the judges, an open, honest and understated individual who prides himself on his company’s strong team spirit that allows him to set high standards and have individuals work to achieve them. DECEMBER 2010
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Deloitte/ Management Magazine
TOP 2OO A Bold Spirit
LEADER OR FOLLOWER? Waiting to see what the future holds is no longer an option. Great leadership is being redefined by those with a strong vision who are not afraid to move mountains and take risks to make things happen. If you don’t want to be second-best, now is the time to take the lead. Talk to us for a head start. www.deloitte.co.nz
Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity. Please see www.deloitte.com/nz/about for a detailed description of the legal structure of Deloitte Touche Tohmatsu Limited and its member firms. Š 2010 Deloitte. A member of Deloitte Touche Tohmatsu Limited.
Deloitte/Management magazine Company of the Year
Beca Group
G
iven this year’s Top 200 Awards “new world” theme, there could hardly be a more fitting Company of the Year winner than our own, home grown engineering consultancy global success story, Beca Group. As the award judges said: “Beca is a model of what it takes to be successful in the new world order of enterprise.” More importantly, Beca represents the new generation of intellectual and personal competency export that New Zealand needs to address the nation’s over reliance on commodities-based income. This $366 million enterprise generates 40 percent of its revenue offshore. As a private company, Beca has not previously submitted its financials for inclusion in the Deloitte/Management magazine Top 200 list. It enters this year at number 94. In the five years 2006 to 2010, Beca grew its annual revenue from $180 million to $366 million and doubled its after tax profit to $33 million. It has reported record profits seven years in a row, despite a back drop of global economic
uncertainty, particularly since 2007. Beca is one of New Zealand’s most impressive commercial success stories. Not just because of the deliberate, strategic and professional way in which it has built the enterprise over almost 100 years, but also because of its consistent commitment to best practice management, customer service, people recruitment and sustainable leadership. As the Group’s former chairman, now Sir Ron Carter used to say: “Win the work, do the work well, get paid for it, and do it with the best possible people.” In the past year the company has focused on what its first ever externally recruited group chief executive, Keith Reynolds, calls “mainstreaming its business model” by formulating its vision and values, mission statement, strategic framework and balanced scorecard reporting. Beca may have been historically successful but, according to Reynolds, it is now preparing to be even more effective at serving its clients, providing more opportunities for its people, setting a
stronger growth course, delivering high performance and becoming a “truly great international business”. With more than 2500 employees operating in nine countries, Beca is the largest employee-owned engineering and related consultancy services group in New Zealand. It works in four key markets: industrial, infrastructure, buildings and the public sector – delivering engineering services, planning, architecture, project and cost management, applied technologies and valuation services. Headquartered in Auckland, it operates from three “hubs” – Australia, New Zealand and Asia. Beca has been raising its profile, both locally and globally. Earlier this year it was recognised in NZ Management ’s first ever Most Reputable Organisations survey of business leaders as New Zealand’s fourth most reputable business organisation. In the past five years it has been involved with more than 60 “award winning landmark projects around the world”. The company is also a model employer. One third, more than 900, of its employees own shares in the consultancy. Its employee shareholding structure is considered an important business “differentiator”. In his shareholders’ report this year, executive chairman Richard Aitken said that “sharing the rewards with employee shareholders has been one of the main drivers of the extraordinary success of the Beca business, both in New Zealand and internationally”. How long this structure can be maintained given the pressures of the new world marketplace is difficult to predict. But in the company’s 2010 Annual Review, Aitken also said: “Many of our global competitors, DECEMBER 2010
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which also operate in our New Zealand, Australian and Asian markets, are active in the merger and acquisition area. Competition is global and relentless whichever country we are in, however, we are fortunate to have the comfort of previous success to help drive the new initiatives Beca is pursuing today.” Give the new world of knowledge and technology-driven enterprise, Beca
is better placed than many New Zealand companies to sustain its undoubtedly successful and award-winning formula. It is, as the Top 200 judges also said, “an outstanding example of the kind of enterprise that New Zealand needs to deliver the (country’s economic) future”. For that reason, too, they chose Beca as the Deloitte/Management magazine Top 200 Company of the Year. M
Judges’ Comments: Winner
Finalist
Beca is simply a world leader. Its reputation as an outstanding engineering consultancy is reflected both in the scope and scale of the global contracts it wins and in the industry awards and personal accolades bestowed on the company and its people. The company is, said the judges, an outstanding example of the kind of enterprise that New Zealand needs to deliver the future. It is an exporter of intellect and professional competency rather than commodities. It earns around 40 percent of its total annual revenue offshore. To be named the Deloitte/ Management magazine Top 200 Company of the Year on debut is an outstanding achievement. But, said the judges, Beca is not an overnight success story. Its roots go back almost 100 years. Now, it operates from 20 offices in nine countries. It is the outcome of visionary leadership and years of dedication to world best practice. It has been deliberately, strategically and professionally constructed. It is a model of what it takes to be successful in the new world order of enterprise.
Ebos Group’s rise up the Deloitte/ Management magazine Top 200 list has been stellar. It ranked 100th just three years ago. Now it is 25th. Its growth strategy holds important lessons for New Zealand. Frankly, said the judges, we need more companies to grow like this. But more important than the growth, is the way in which it has been managed and led. The company has made excellent decisions and acquisitions and now has them working for the enterprise as a whole. Ebos is now one of the leading independent (nonmultinational) healthcare supplies companies in Australasia. It is looking to the world for growth, and that too sets it apart. It turned in another great result this year with a profit boost of 18 percent on just a two percent revenue increase. Ebos may be 80 something years old but it looks to be just hitting its straps. It was a finalist in this category last year and that too speaks volumes about its performance.
Beca Group
40 | management.co.nz | DECEMBER 2010
Ebos Group
Finalist
Ryman Healthcare Group Ryman is one of New Zealand’s healthiest companies. Its performance in 2010 was once against exceptional. Given the company’s year-on-year performance, Ryman cannot be denied its place as a finalist in the Deloitte/ Management magazine Company of the Year category, said the judges. The company’s strong earnings growth is based on providing firstclass retirement accommodation and healthcare services for the New Zealand’s aging population. Ryman consistently delivers for its residents and for its shareholders. The company has grown consistently and responsibly with its market opportunity. And it has continued to provide a high-quality product despite working through recent tougher times in the property market. Ryman is a New Zealand success story with a solid growth profile and excellent management and governance. The combination ensures delivery on the company’s potential. Another great year and company performance.
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Glazebrook New Zealand is a proud to sponsor the Deloitte/Management Magazine Top 200 Awards.
NZIM/Eagle Technology Young Executive of the Year
Claire Szabó A change leader
R
estructuring an organisation is one of the hardest tasks a chief executive can face – yet Claire Szabó has done it twice, putting her organisation in great shape over a tough period in the business landscape. “I have restructured twice since starting as CEO in June 2006, as strategic plans have taken us in a new direction,” says Szabó, who heads English Language Partners and is this year’s NZIM Central Region winner and winner of the NZIM/ Eagle Technology Young Executive of the Year. English Language Partners (formerly ESOL Home Tutors) offers migrants and refugees a range of English-language programmes delivered by a combination of qualified professionals and trained volunteers. “Our clients are all people with amazing stories who have been through amazing things to get here,” Szabó says. Staff management and leadership has been made easy by working with an excellent team of highly committed, diverse and skilled people, she says. “Being appointed chief executive at 27, I got lots of support from the fantastic staff in my team.” Szabó says she inherited an organisation that was dissatisfied with its salary system. Funds dispersed by the national office for organising and delivering services were seen as inequitable and out of step with the market. “Working with senior managers, I implemented a programme of change on salary funding for members. This involved
42 | management.co.nz | DECEMBER 2010
participatory processes to prioritise a range of possible changes, external sizing of 200 roles, analysing roles to create categories, sourcing of market data, significant fundraising, and a two-stage process to move salary funding to benchmarked bands over a six-month period. Hard on the heels of that restructuring and a name change to better reflect the organisation’s role, Szabó went into a year of strategic reviewing and planning, resulting in 39 recommendations. Working with a senior staff member, she drafted a strategic framework encompassing a vision for the community, a vision for the organisation in three to five years, four result areas and 13 specific goals. To gear up for the new strategic direction, she restructured the national office, appointed a deputy CEO from within the staff and hired someone to a new role as client relationships developer. So which project is Szabó most proud of? “In 2008, I had the chance to negotiate a new $1.12 million annual fund with the Tertiary Education Commission. This purchased a programme for 690 people needing small group or one-to-one language support and was rolled out across
all 23 locations. Seventy teaching staff were trained to deliver the specialised tuition.” Szabó says the job was made tougher by a very short timeframe, which created some stress. “But the tensions were worked through admirably by staff.” This year, the second year of its delivery, it funded 127 new tutoring positions, reaching several thousand clients a year.” External relations have been a major focus, say Szabó, who was a founding member of three alliances over the past three years – Adult and Community Education
Strategic Alliance, Literacy Alliance and the Settlement Non-Government Organisations Networking Group, which she chairs. She has also created a new partnership with the Open Polytechnic of New Zealand to deliver a foundation skills programme, and with the Rural Education Activity Programmes Aotearoa NZ (REAPANZ) to deliver language training to learners in rural locations. Formerly an English language instructor to adults at Berlitz language services, moving to become a project developer for Berlitz International and the EU, and then a consultant, Szabó says when she saw the calibre of her fellow finalists, she felt honoured.
Charles Berridge, National Board chair of English Language Partners New Zealand, says the award is very much deserved: “Claire is seen in the organisation as a strong, clear communicator with knowledge and passion. Her commentary is sought by other organisations, both within and beyond the sector.” Claire Szabó loves her job, but knows part of her role is to equip the organisation for the future. “If I were to leave tomorrow,
Judges’ Comments: Winner
Claire Szabó Chief Executive, English Language Partners Claire Szabó, 32, is an outstanding young leader who will grow in influence, the judges said in announcing her as the Young Executive of the Year 2010. The award recognises leaders, innovators, team builders and high achievers aged 35 and under who make a positive impact on the growth, productivity and morale of their organisation. Claire is energetic and confident. She is also a strategic and visionary thinker who makes the most of her forward thinking capabilities, the judges noted. She is a dynamic leader who has very professionally led her organisation through a period of significant change. She engages her team and others in her change processes and has created collaborative solutions across the sector.
I feel confident that the association would have a very strong management team and national office, a clear strategic direction focused on partnership with migrants and refugees, and a set of compelling plans and ideas on to build capability and performance for the future.” M
Finalist
Finalist
Sharon McCook Group Manager, Health Research Council Sharon McCook oversees the allocation of a budget of approximately $6 million for national and international health research projects. She is holistic, innovative and strategic, the judges noted, and has demonstrated an outstanding ability to establish and maintain relationships in her role as group manager of research partnerships and to use these to create collaborative solutions. She is a good listener with a sense of balance and a pragmatic approach. Most of all, she has an ability to deliver, which has resulted in high-level outcomes from the 100-plus research projects she overviews. The judges can see her as a future leader in the health sector.
Brendon McWilliam Operations Manager, Christchurch Engine Centre Brendon McWilliam, 33, is an impressive young executive who has developed from a technical background as an aircraft engineer to quickly become a key executive in his organisation. Under his guidance, the Christchurch Engine Centre’s V2500 jet engine product line at Christchurch Airport has now positioned itself as the world’s number-one ranked overhaul facility, with 95 percent of its work coming from offshore. He has a good business sense and a broad range of skills, the judges remarked. Most particularly, he empathises with his people, with around 200 employees of 20 different nationalities working under his direction. He is enthusiastic and passionate about what he does, is self aware and is valued by his organisation. He will be another leader in his field said the judges.
DECEMBER 2010
| management.co.nz | 43
Congratulations to our 16th NZIM/Eagle Technology
Young Executive of the Year
2010
Claire Szabó
Chief Executive, English Language Partners NZ Claire Szabó, Chief Executive English Language Partners NZ, was honoured alongside New Zealand’s leading business individuals and organisations at the Deloitte/ Management magazine Top 200 Awards in Auckland on December 2 2010. Management developement compliments of NZIM. Travel prize to London compliments of Singapore Airlines.
www.nzim.co.nz • www.eagle.co.nz • www.management.co.nz/top200
IN ASSOCIATION WITH: PRINCIPAL SPONSORS:
“In
rebranding her organisation, Claire successfully achieved a unanimous vote of support from all its members.�
Congratulations Claire Szabo CEO, English Language Partners New Zeland
2010 NZIM/Eagle Technology Young Executive of the Year
aditude 11239
We are proud to invest in the leaders of tomorrow with our ongoing support of the NZIM/Eagle Technology Young Executive of the Year Awards. After all, they are the future of New Zealand business.
QBE Chairperson of the Year
Alison Paterson B
eing the first woman to receive QBE’s 2010 Chairperson of Year award is another first in a long and impressive list of accomplishments for Alison Paterson. She won this Top 200 award for her many years of outstanding leadership of a wide range of New Zealand private and public sector enterprises and organisations. And the judges specifically acknowledged her inspired leadership of Abano Healthcare in recent years. Other current chair roles include Farm IQ, a primary growth partnership; the University of Auckland’s National Centre for Growth and Development; New Zealand’s (medical) Best Practice Advocacy Centre and Stevenson Agriculture. She has, in the past, chaired Waitemata Health and Landcorp. She was the first woman to become a New Zealand public company director and has sat on the boards of some
of the country’s most august organisations, including 15 years on the Reserve Bank board. She was made a Companion of the New Zealand Order of Merit in this year’s honours list in recognition of her service to business.
The award judges this year’s acknowledged Paterson’s undoubted professional skills and inspired leadership capabilities. But they also commented on her personal humility and humanity, a trait also noted by Alan Clarke, managing director, Abano Healthcare. “She treats all with the same level of respect and always takes time to say hello to support staff, listen attentively and be genuinely engaged in conversations with them,” says Clarke. “She operates her boards by consensus and encourages everyone to speak freely, challenge ideas and explore options. However, she is clear on the fine line between management responsibility and governance and once a direction is chosen she will defend that decision to the hilt with a will of steel… and in a game of blink, she wins!” M
Judges’ Comments: Alison Paterson As the past and present chair of a number of New Zealand’s largest private and public sector enterprises, Alison Paterson is acknowledged by her peers as an outstanding leader. She is dedicated to best practice governance, forging partnerships with chief executives and other board members to ensure enterprises she leads perform to the highest governance standards. She is prepared to make tough decisions and big calls when it is in the interests of the organisation and its stakeholders to do so. She is, said the judges, an outstanding chairperson and inspirational team leader.
Sir John Anderson Because of his exceptional leadership skills, Sir John has effectively become the nation’s organisational “Mr Fix It”. And fix it, he invariably does. It is doubtful whether any other chair has been handed so many difficult and diverse governance leadership roles – from television, to health, the meat industry, banking and, of course, sporting organisations. Little wonder he is so highly regarded by his peers as an effective chair. Sir John is, said the judges, an outstanding chairman and industry leader.
Finalist
Finalist
Winner
Sir Henry van der Heyden Sir Henry van der Heyden has again proved that he deserves to be recognised as one of New Zealand’s most effective and successful chairs. His leadership of Fonterra’s renewed capital restructuring in 2010 was impressive, said the judges. He led from the front to complete a complex and controversial exercise. His chairmanship of New Zealand’s largest dairy industry cooperative is delivering a robust and increasingly successful global enterprise. DECEMBER 2010
| management.co.nz | 47
>> IN RECOGNITION OF EXCELLENCE
The Top 200 Awards recognise excellence in New Zealand business. We congratulate those whose commitment and hard work have raised them to the top in their respective fields. At Kensington Swan we too celebrate excellence and are proud of the achievements of our people who are recognised leaders in their specialty area of the law.
Daniel Hughes | IFLR1000 Restructuring and insolvency
David Ireland | IFLR1000 Banking and project finance
AU C K L A N D
John Meads | Legal500 Real Estate and construction
W E L L I N G TO N
Sheana Wheeldon | Legal500 Intellectual property
Gerald Fitzgerald | IFLR1000 Banking and project finance
ABU DHAB I
K E N S I N G TO N S WA N . C OM
David Lewis | IFLR1000 M&A
Kensington Swan Responsible Governance Award
Vodafone New Zealand
Stakeholder commitment
V
odafone’s commitment to responsible and ethical governance is entrenched. The company’s founding ethical principles are enshrined within its written Business Principles which, in turn, reside within the Vodafone Code of Conduct. The code explains how all employees should apply the principles in practice. Elements of stakeholder governance were integrated into Vodafone’s corporate responsibility management process some years ago. The Vodafone New Zealand management board – consisting of directors and other senior executives – operates an approved stakeholder engagement plan. Individual executives each have stakeholders assigned to them to manage high-level relationships. Every month the management board reviews stakeholder engagement activity. Twice a year the company’s group executive committee is formally updated on corporate responsibility activities and the group board gets an annual update. The stakeholder project that took the eye of this year’s Kensington Swan Responsible Governance Award judges was the kind of activity that this structure and approach is designed to capture and act on. Vodafone’s corporate responsibility strategy includes setting stakeholder targets agreed through stakeholder engagement forums. The issue of mobiles and road safety was identified as a priority by these forums.
The forums included representatives from enforcement agencies such as the police, motorist groups and youth driving educators. Vodafone agreed a stakeholder target to implement a responsible marketing initiative to raise awareness of the dangers of using mobile phones while driving. The stakeholders, however, pushed the company to take a more aggressive stance and to revisit its position on outlawing the use of handheld mobiles when driving. Vodafone described its position at the time as “neutral”. It publicly acknowledged the use of mobiles while driving was a significant distraction and hazard on the road and advised customers against it. Its position on a ban was simply to not oppose it. A decision to support a law change would mean advocating a change which limited the revenue-generating usage of Vodafone’s services. It was a call which required commitment from “top level”. In March 2008 the company strengthened its position and opted to call for a ban. The call got widespread coverage and Telecom supported the move. In June, the government announced its intention to investigate a ban and Vodafone contributed to the submission process. In the run-up to the enactment of the law, Vodafone contacted stakeholders to discuss education on the new regulations and to communicate a coordinated message. Its objective for involvement was,
says the company, to help its customers understand the new law and to educate them on safe driving practices. The company also wanted customers to recognise that mental distraction, rather than physical manipulation of a phone, was the major hazard when making a call. Awareness of this issue is still high. Vodafone recognises that behaviour change is difficult to achieve so the education process is ongoing. “Performance measurement of the project’s ultimate aim to improve road safety is difficult and it will take years to get significant statistical evidence of success,” said the company in its award submission. “However, internally we measure the success of the project through an increased public awareness of the safety issues and through our demonstration of leadership and responsiveness to our external stakeholders.” From the award judges’ perspective this is an excellent example of responsible governance in action. M DECEMBER 2010
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RESPONSIBLE GOVERNANCE AWARD Judges’ Comments: Winner
Finalist
Stakeholder commitment
Enhancing stakeholder education
Vodafone New Zealand Vodafone has consistently illustrated and articulated its deep-seated acceptance and understanding of the principles of responsible governance. The company has been a finalist in the Top 200’s ethical and responsible governance award category for the past three years. It is this year’s winner both for it comprehensive and long-term commitment to responsible governance and, in particular, for actions in the past year that the award judges said “clearly reflect outstanding stakeholder commitment”. When its stakeholder engagement forums identified the use of mobiles and road safety concerns as a priority, the company responded by moving to take a proactive stance and changed its position from “not opposing” law changes to “advocating a change”. The company’s actions demonstrated best practice responsible governance. Its actions: • Were a Vodafone initiative in response to a stakeholder need. • Promoted accountability and reporting against stakeholder targets. • Involved working collaboratively across sectors to achieve a positive outcome. • Prompted an ethical decision to lobby for a change with negative commercial implications. The company had, said the judges, shown regard for the Securities Commission Corporate Governance Principle 9 which calls for consideration and respect for stakeholders’ interests and for reports on how those interests are respected. Vodafone accepted that if it was to be consistent with its principles it needed to take a hard line on the use of mobiles in cars. It was, the judges said, “a responsible leadership position” to take. 50 | management.co.nz | DECEMBER 2010
ANZ Banking Group ANZ New Zealand is a first-time finalist in the Kensington Swan Responsible Governance Award. Internationally, however, its parent company has for four years in a row been assessed as the world’s leading bank on the Dow Jones Sustainability Index (DJSI). The DJSI’s corporate responsibility assessment ranks performance and business practices including corporate governance, risk management, customer relations, brand management, human resources, corporate community investment, climate change mitigation and environmental performance. In the past year, ANZ New Zealand has focused strongly on customer relations, helping communities grow, strengthening corporate governance and creating a risk aware culture. The judges were particularly impressed by the bank’s partnership with Runanga o Ngai Tahu, the governing body of Ngai Tahu Whanau, to undertake what is one of the world’s first indigenous people’s financial knowledge surveys. The bank began working with Ngai Tahu in a pilot project to tailor and adapt its Money Minded financial education programme to reflect iwi culture and experiences. The long-term aim is to offer the programme to all iwi in New Zealand. The bank’s education programme is designed to better the financial position of Maori which will, in turn, have significant flow-on impacts by addressing negative social wellbeing indicators. The survey is an important part in the process of improving people’s ability to make informed decisions about how they manage their money and plan for the future.
Finalist
New Zealand Aluminium Smelters Sustainable stakeholder management New Zealand Aluminium Smelters, (RTA Pacific), is undoubtedly one of New Zealand’s most responsibly governed enterprises. It has been a finalist in the Top 200 Kensington Swan ethical governance category five times and won the award three times. Its commitment to responsible and ethical governance is unequivocal. Its nomination as a finalist this year is in large measure based on the success and sustained management of a key stakeholder relationship it has established with the Department of Conservation (DOC). Twenty years ago the company, formerly Comalco and Rio Tinto Aluminium, became a major sponsor of “Kakapo Recovery” in partnership with DOC and the Forest and Bird Society. The programme is designed to prevent the extinction of New Zealand’s critically endangered native bird, the kakapo. The partners work together to increase awareness of the programme and to improve the future for kakapo through their commitment and contributions of support, operations and funding. The company’s total commitment so far exceeds $3.75 million. NZAS’ ongoing commitment to the original Kakapo Recovery project has vastly extended the programme and now effectively incorporates the company’s people, business systems and corporate approach to stakeholder management and sustainability.
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Most Improved Performance Award 2.0 Marsh is proud to be the sponsor of the Most Improved Performance Award at the Deloitte / Management Magazine Top 200. As the world’s leading insurance broker and risk advisor, we recognise the importance of being the highest performing organisation within your field. We therefore acknowledge those who are striving to become New Zealand’s top organisations. Congratulations to the winner, we salute your achievements. Call 0800 627 744 or email info.marshnz@marsh.com or visit www.marsh.co.nz for a comprehensive overview of our credentials.
Marsh Most Improved Performance Award
Restaurant Brands I
n tougher times, it seems we turn to fast food outlets for sustenance. The recession, admittedly along with some other more constructive strategies and actions, proved something of a god send for Restaurant Brands. To be fair, in naming Restaurant Brands the recipient of the Top 200 Marsh Most Improved Performance Award for 2010, the judges pointed out that two or three years of product innovation, brand repositioning and infrastructural costcutting were the key ingredients in the company’s recipe for success. The strategic plays and economic conditions combo proved a winner. Profit after tax climbed 137 percent on a very modest three percent lift in revenues. The profitability increase was driven mainly by KFC’s enhanced performance. This was a result of the chain’s brand transformation involving
Judges’ Comments: Winner
Restaurant Brands Group Product innovation, brand repositioning, infrastructural cost-cutting and a recessionary marketplace that favours the sale of fast foods contributed to a very strong performance by Restaurant Brands in 2010. The company has been transforming its fast food chains for the past three years and worked itself into an ideal position to capitalise on the economic downturn. The Group is now earning payback on its repositioning investment and product innovation strategies.
54 | management.co.nz | DECEMBER 2010
new products and store refurbishments which grew both sales and margins. The brand also cut its operational costs and benefited from volume growth, despite substantial increases in chicken prices and labour costs. The Pizza Hut business continued to be challenging but with leveraging through sales growth, closing unprofitable stores and improved cost and management controls, it contributed to the group’s performance. However, Starbucks served up a flat and very trim helping. The group’s chief executive, Russell Creedy, said recently that it would, “be quite interested in selling [Starbucks] as a going concern and reinvesting that back into KFC”. This year’s improved performance is, said the judges, payback for the considerable effort the company has made to smarten its marketing act, to refurbish its outlets, to cut
operational costs and increase efficiencies and to gain market share. The company has demonstrated its resilience in difficult economic times and the directors expect another strong profit performance in the current year. After tax profit for the first half of the current year is up an impressive 50.3 percent on the prior year, with all three brands contributing to this. M
Finalist
Finalist
Briscoe Group slashed the sale prices of its retail offerings and its operating costs in 2010. It also undertook some long overdue internal restructuring and organisational changes. The result was an impressive 80 percent improvement in its bottom line profit. Despite the realities of a competitive and challenging retail marketplace, Briscoe made the most of things by promoting its strong brands, sharpening prices and improving its corporate structure. The group also enhanced its performance by changing its employee and management remuneration philosophy to a store profit centre structure. Investment in new technology has also enhanced the ability to control inventories and refine product ranges. A great result in a tough marketplace.
Meridian Energy switched on a high voltage performance in 2010. Its after tax profit climbed 106 percent to $184 million. Revenue climbed eight percent to $2.06 billion. Higher than average rainfalls over the past couple of years delivered ideal energy generation opportunities and the company made the most of its good fortune. It implemented sound organisational changes that resulted from a comprehensive “fit-for-purpose” operational review. It also recharged its commercial focus through a new performance management framework, more disciplined capital allocation and better and more integrated decision making across its retail and wholesale businesses.
Briscoe Group
Meridian Energy
Healthy people healthy business
Workbase Best Growth Strategy
Sky Network Television S
ky Network Television has been one of the star performers in the New Zealand business scene over the past two decades although, ironically for a media organisation, it has mostly shunned the spotlight. Its success has been based around a well managed and thought out growth strategy. It has consistently grown its subscriber base through innovation, by responding to customer demands and delivering, to a very high standard, the sort of television content that Kiwis most enjoy – led by lots of sport. As a result, nearly 50 percent of New Zealand households are now Sky subscribers, a phenomenal achievement given it started from scratch in 1990 in a market dominated by freeto-air, state-owned television. Sky’s growth strategy for 2009/2010
Judges’ Comments: Winner
Sky Network TV Sky is still tuned into growth. It remains that way by staying ahead of the curve, according to the judges. Its strategy is to keep delivering its customers higher value products, to be an innovative marketer and to deliver great service. It also focuses on building a dedicated team of employees. People development strategies account for a major percentage of the company’s consistently high performance, according to its CEO John Fellet . An outstandingly well managed company, Sky has been a Top 200 awards finalist in the past. It deserved to win this category in 2010, the judges said. 56 | management.co.nz | DECEMBER 2010
was very much more of the same but enabled it to turn in another aboveaverage performance in an environment where discretionary spending was under continuing pressure. Subscriber numbers grew by 23,495 to 802,397. There is no doubt MySky, the company’s most revolutionary product innovation yet, has been a box office smash, enabling customers to make the most of precious leisure time. In the year to June 2010, 85,984 Sky subscribers moved to MySky HDi, helped by some aggressive marketing. The addictive MySky has also helped reduce churn, with a lower customer turnover rate than for standard digital, and contributed significantly to Sky’s 6.8 percent revenue increase to $742 million. Net profit’s 16.9 percent hike to $103 million mainly reflected the increase in Finalist
Ryman Healthcare A strong, consistent and well articulated business strategy keeps Ryman focused on much needed accommodation and healthcare services for New Zealand’s steadily aging population. The company grew both its revenue and its profitability by around 18 percent in 2010. Ryman has, said the judges, executed its growth strategy very well in 2010 and continued to deliver attractive returns to its shareholders. The company’s astute use of capital also showed a management and governance team that understands the importance of business fundamentals and the need to be disciplined about sticking to them.
revenue as well as an $8.4 million reduction in finance expenses. In financial circles, Sky’s debt and currency management strategies are highly regarded. And a strong focus on people management and development has been another important factor in Sky’s strong performance. M Finalist
Zespri Group Zespri’s growth strategy is based on sophisticated global marketing and constant product innovation. This is delivering increased sales and new markets. Its marketing approach also ensures that its fruit commands premium prices despite strong competition. Revenue increased five percent and profit eight percent over the past year in a challenging international business environment. While not big numbers, they showed that Zespri’s global strategy is working despite flat economies in many of its markets. New varieties, such as the gold kiwifruit, have been globally successful and are building new sales opportunities and lifting returns to growers.
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“I think what design allows you to do is to push the boundaries” “Design thinking allows you to look at things from a different perspective. So in terms of creating a new wave, design played a critical part and adds real advantage.”
Brian Blake, Managing Director, DB Breweries
designworks.co.nz/designthinking
Designworks Visionary Leader
Douglas Goodfellow A world view
T
he 2010 Desig nworks Top 200 Visionary Leader, William Douglas Goodfellow OBE, has followed in his father’s footsteps as one of New Zealand’s truly visionary businessmen and generous benefactors. His father, the late Sir William Goodfellow, was the visionary who effectively kick-started the New Zealand dairy industry and launched its co-operative model. Douglas then led the expansion of his family’s business into exporting of almost every kind – from fish to meat, live breeding stock to fruit and vegetables, while simultaneously building the Goodfellow’s Amalgamated Dairies enterprise. Douglas Goodfellow is, however, more than a visionary and motivated businessman committed to expanding New Zealand’s exports. He is a philanthropist, particularly committed to supporting education and medical science research and aged care programmes in New Zealand. He has unstintingly supported Auckland’s St Kentigern College, the Presbyterian school his father helped establish in 1951. Now 93, he remained on the school’s trust board until 2000. In 1978, to mark the 50th anniversary of Amalgamated Dairies and in memory of his father, Douglas funded the Goodfellow unit in the School of Population Health at Auckland University. He also established a postgraduate chair in general practice at Auckland Medical School.
60 | management.co.nz | DECEMBER 2010
He was Chair of the Auckland Medical Research Foundation for many years and has been a generous benefactor to this and, along with the whole Goodfellow family, the St Andrew’s Village retirement complex. Douglas Goodfellow’s Presbyterian work ethic is evident in everything he tackles and his approach to life. He is a self-confessed workaholic who prefers to labour into the night on the projects with which he becomes involved. “It all comes from the basis of his Presbyterian faith which is about hard work, study and giving back to society,” says his son Bruce who is chairman of The St Kentigern Trust Board. Douglas Goodfellow and his wife Judith prefer to keep low personal profiles. Douglas shuns publicity of almost any kind and is reluctant to accept accolades for either his commercial success or his many charitable contributions to the community. But, said the Top 200 judges, Douglas Goodfellow has made a significant contribution to New Zealand in many different ways. He built a successful family business and always thought outside the square. He was and still is committed to New Zealand, to the need to export our products to the world and to promote education and medical care. He has always taken a global view of New Zealand’s needs. He is a worthy Top 200 Awards Designworks Visionary Leader. M
Judges top 200 judges Roger J Kerr is a director and shareholder in Asia-Pacific Risk Management, an advisory firm specialising in interest rates, debt, foreign exchange and corporate treasury management, and ETOS, a company which manages outsourced treasury services. With 29 years’ investment banking and financial markets experience, he is an advisory board member of the New Zealand Government Debt Management Office, board member of the National Provident Fund, chairman of Trust Investments Management and of PIE Funds Management, a director of Select Access New Zealand and a trustee of Auckland City Mission Foundation. Neil Paviour-Smith has over 20 years experience in various roles in domestic equity markets. He is managing director of NZX firm Forsyth Barr having previously been research director, and following portfolio management and research roles with Westpac Investment Management and National Mutual Funds Management. He is a director of New Zealand Exchange (NZX) and a director of the New Zealand Institute of Chartered Accountants (NZICA). He is a Fellow of the Institute of Finance Professionals NZ Inc (INFINZ) and formerly chairman of the NZ Society of Investment Analysts 1999-2001. He is a member of the NZX, the Institute of Directors, the Institute of Chartered Secretaries NZ and the CFA Institute. He was an inaugural recipient of a Sir Peter Blake Trust Emerging Leader Award in 2005. Janine Smith is a principal of The Boardroom Practice and a professional company director in both the public and private sector. She is currently chair of AsureQuality, chair of McLarens Young NZ, deputy chair of Kordia Group, and a director of The Warehouse Group and New Zealand Steel and Tube. She previously held executive director positions in Arnott’s New Zealand and Telecom Directories. Smith specialises in boardroom practice, strategic planning, organisational development and organisational change issues for boards and management. She is an alumna of London Business School and the University of Auckland.
RESPONSIBLE GOVERNANCE AWARD JUDGES Doug Matheson MNZM has over 20 years’ experience in a wide range of governance positions in New Zealand and overseas. He is a member of the NZIM Foundation Executive and a member of the Massey University Graduate School of Business Advisory Board. He is a Fellow of the Institute of Directors and Life Fellow of NZIM. Rodger Spiller has extensive experience and a doctorate in responsible investment and business. He heads Money Matters and is a wealth management adviser. Spiller also presents keynotes and training on leadership and increasing ROI from training. He is a director of the Responsible Investment Association Australasia and Oxfam (NZ). Duncan Paterson is CEO and founder of CAER – Corporate Analysis. Enhanced Responsibility, the not-for-profit ESG research organisation based in Canberra, Australia. He has worked extensively in the field of responsible investment, both in Australia and in the UK with EIRIS – Experts in Responsible Investment Solutions. Paterson is also president of the Responsible Investment Association Australasia (RIAA), a director of the Hong Kong-based Association for Sustainable and Responsible Investment in Asia (ASrIA), and a member of FINSIA’s Managed Funds & Super Advisory Group.
YOUNG EXECUTIVE OF THE YEAR AWARD JUDGES Reg Birchfield is a business journalist and publisher. As a founding director of Fourth Estate Holdings in 1971, he was editor and publisher of National Business Review, The NZ Business Who’s Who, Capital Letter and other publications. He established Profile Publishing, publisher of NZ Management and other magazines, in 1984. He is now a director of RJMedia and a Life Fellow of the New Zealand Institute of Management. Jo Brosnahan is the founding chair of Leadership New Zealand and the chair of Landcare Research. She was formerly CEO of the Auckland Regional Council for eight years. She is a director with a focus upon strategy and thought leadership and a passion for developing the next generation of New Zealand leaders. Dave Larsen was acknowledged last year as NZIM/Eagle Technology’s Young Executive of the Year. At that time he was Rayglass Boats’ sales and marketing manager. He has since been promoted to general manager of the company. Helen Robinson is managing director Markit Group responsible for its global environmental markets business. Robinson has led numerous businesses, including her own software company, and was previously CEO of Microsoft New Zealand. She was founding chief executive of TZ1 Registry, which was acquired by Markit Group in 2009. A theme of Robinson’s career has been a strong passion and drive to deliver value to stakeholders through technology and innovation. She currently serves on several boards including NIWA and the Business Excellence Foundation.
Judges who had a personal interest in any of the companies they were assessing, declared a conflict of interest and did not vote with respect to those companies. DECEMBER 2010
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Criteria
N
Z Management magazine’s listing of New Zealand’s largest organisations includes New Zealand subsidiaries and local branches of overseas companies, producer boards, cooperatives, local authority trading enterprises and state-owned enterprises that operate as limited liability companies. To be included in the Top 200, organisations must operate for a commercially determined profit and be liable for tax on earnings. Companies fully owned by another New Zealand company are excluded. All figures are the latest available, verified and audited. • Revenue: as disclosed in the entity’s financial statements. Includes sales (excluding gross commission sales), rent, dividends, gains on disposal of assets and interest received. • Profit After Tax: includes equity accounted profit including profit attributable to non controllable (minority) interests. • EBITDA: Earnings before interest tax depreciation and amortisation and impairments of property plant or equipment or intangible assets. • EBIT: Earnings Before Interest and Tax, includes unusual income and expense items. Not shown for the financial institutions. • Return On Revenue: calculated by profit before interest and tax divided by revenue. Where no profit figures are shown, this calculation is not applicable as indicated by N/A. • Total Assets: as disclosed in the entity’s financial statements. Includes current and non-current assets, investments, tangible and intangible assets, deferred tax assets and goodwill. • Total Equity: as disclosed in the entity’s financial statements including non controlling (minority) interests. For New
62 | management.co.nz | DECEMBER 2010
Zealand branches of overseas companies, the amount shown as owing to head office is taken as deemed equity. • Return on Total Equity/Total Assets: calculated by profit after-tax divided by average total equity/total assets over the past two years. Where an entity is in its first year of operation the current year total equity/total assets figure has been used as an approximate. • Proprietorship Ratio: Total Equity (see above) divided by average total assets over the past two years expressed as a percentage. • Total Employees: New Zealand staff who work more than 30 hours a week. Includes staff of wholly owned subsidiaries. General • Companies that have operated less than six months are not included in this listing. • Majority shareholdings greater than 50 percent by other New Zealand entities are indicated in brackets. A key to these abbreviations follows the listing. • A * indicates companies that are more than 50 percent overseas-controlled. • Not disclosed (N/D) is used where figures were not disclosed by the company or disclosed but not able to be verified. • An (-) indicates the company was not ranked last year. Financial institutions Includes banks, finance companies, insurance companies (life/ fire and general/superannuation) and investment companies. These organisations are ranked on total assets and appear separately. The financial institution results are based on the entity’s legal set of accounts and not those accounts which include funds under administration (ie, accounts
which include assets that are not legally owned by that institution, but administered by it). • Revenue: as disclosed in the entity’s financial statements. • Profit After Tax: is shown for information purposes only and no ranking is given. • Total Equity: as disclosed in the entity’s financial statements including non controlling (minority) interests. For New Zealand branches of overseas companies, the amount shown as owing to head office is taken as deemed equity. • Pre-tax Return on Revenue: calculated by profit before tax (and after interest) divided by revenue. Where no profit figures are shown, this calculation is not applicable as indicated by N/A. • Proprietorship Ratio: Total Equity (see above) divided by average total assets over the past two years expressed as a percentage. M
Taxation changes The Government announced in the Budget in May 2010 a change in corporate tax rate from 30c to 28c from the 2012 tax year. In addition, tax depreciation on buildings was disallowed from the 2012 income year. These changes have resulted in a one-off impact on the tax expense due to a recalculation of deferred tax by companies in their annual financial statements for the year ended on or after 31 May 2010. A number of companies in the 2010 tables have amended their deferred tax figures and further adjustments by companies with an earlier balance date than May 2010 are expected in the 2011 figures.
Murray Jack: CEO Deloitte
A Great Time to Invest O
ver the past year since the last Deloitte/Management magazine Top 200 Awards we have experienced only a very modest recovery from the “Great Recession”. At the end of 2009 we were looking ahead to 2010 with optimism but as the year wore on consumer confidence did not rebound and business confidence fell once more. Even now, 18 months into the recovery, consumer spending remains subdued and business investment anaemic. The rebalancing in the household sector from spending, and often borrowing to fund it, to cutting expenditure and paying off debt has been more rapid than many expected. Although painful in the short term, this will prove more positive in the long run. For business the past year has continued to see a focus on cost control, cash management and balance sheet strengthening. It has been a continuation of “back to basics”. Those businesses that reacted quickly to trim capacity have seen profitability recover even as demand has remained subdued. Those that did not react quickly are either now doing so or are prepared to suffer lower returns until their markets recover. I think they may have a long wait. In large part these reactions reflect the new world that business will face in the aftermath of the global financial crisis and the great recession. What does this new world look like? I think in the immediate term it will see consumers continuing to repair their balance sheets,
just as most businesses have done. As this takes longer for households, growth in consumer demand will not rebound quickly. This will keep economic growth low, despite efforts of governments to stimulate it. There will be increased regulation, especially in the financial sector, and this will undoubtedly have unintended consequences which may also delay recovery. But there are significant opportunities in the new world for business. These lie primarily in the rising economic power of Asia, and to a lesser extent South America and parts of Eastern Europe. The growth trajectory will not always be even but the continued rise of emerging markets is inexorable. For anyone who has visited Shanghai the vibrancy, confidence and sheer determination to succeed is palpable. New Zealand has real advantages as this new world unfolds. Our agricultural commodities are now strengths as demand for protein in Asia grows with increased wealth. Our relative closeness to Asia does not disadvantage our education and tourism industries. We have a vibrant and growing technology sector with an increasing reputation for innovation. And perhaps most significantly of all, we are closely tied to Australia which is now well integrated into Asia’s supply chain. So how are we doing in taking advantage of the opportunities presented by the new economic order that is emerging? The rebalancing of our economy towards the export sector is underway. The growth in trade with China has accelerated significantly following the
free trade agreement – over 35 percent in the past year alone. New Zealand businesses are making material investments in China, as are Chinese businesses in New Zealand. China is now New Zealand’s second largest export market and Fonterra’s largest customer. But to be successful will require a step up in the level of business investment; in research and development, distribution channels, facilities, marketing and talent. Business balance sheets are in good shape. I think it’s time to take some risks to exploit the opportunities emerging from the new world that is taking shape. Government efforts to help are having mixed success. There is good investment in much-needed infrastructure, particularly roads, rail and electricity transmission. The jury is still out on the broadband initiative. But the effort to open up mining has so far failed and progress on reducing the size of government slow. The hard choices foreshadowed in the 2025 Task Force Report have yet to be made. I congratulate all the finalists in the 21st Deloitte/Management magazine Top 200 Awards, and of course the winners. Reading through the list of New Zealand’s Top 200 companies, you should all be proud of your success and the contribution you are making to wealth creation in New Zealand. Our businesses are strong and performing well, and the stable of globally competitive enterprises continues to grow. We have faced unprecedented uncertainty, and now we face unprecedented opportunity. Right now is a great time to invest. M DECEMBER 2010
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Thank You... To all our 2010 finalists and winners who have shown us their vision... Deloitte and NZ Management magazine would also like to extend their gratitude to all the sponsors and supporters of this year’s event. We look forward to seeing you all again in 2011!
2010 winners Deloitte/Management magazine Executive of the Year
QBE Insurance Chairperson of the Year
Marsh Most Improved Performance
Mark Waller, Ebos Group
Alison Paterson
Restaurant Brands
Deloitte/Management magazine Company of the Year
Kensington Swan Responsible Governance
NZIM/Eagle Technology Young Executive of the Year
Beca Group
Vodafone New Zealand
Claire Szabó
Designworks Visionary Leader
Workbase Best Growth Strategy
Douglas Goodfellow
Sky Network Television
Top 200 A-Z Listing Abano Healthcare Group....................................... 125 ABB Grain (NZ)..................................................... 113 ABB...................................................................... 146 AFFCO Holdings...................................................... 33 AgResearch........................................................... 184 Air New Zealand....................................................... 5 Airways Corporation of New Zealand..................... 197 Alcatel-Lucent New Zealand.................................. 102 Alesco New Zealand and Subsidiaries.................... 180 Alliance Group........................................................ 23 Allied Foods (NZ)................................................... 119 Amcor Packaging (New Zealand)............................. 93 AMP NZ Office Trust.............................................. 199 ANZCO Foods......................................................... 28 Aperio Group (New Zealand)................................. 198 Apple Sales New Zealand...................................... 157 Ashburton Trading Society..................................... 163 Auckland International Airport................................. 96 Avon Pacific Holdings............................................ 162 Ballance Agri-Nutrients............................................ 49 Beca Group............................................................. 94 Bidvest New Zealand............................................... 71 Blue Star Group...................................................... 58 BP New Zealand Holdings......................................... 8 Bridgestone New Zealand...................................... 143 Briscoe Group......................................................... 81 British American Tobacco Holdings (NZ)................. 111 Bunnings................................................................ 62 Bupa Healthcare New Zealand............................... 174 CablePrice (NZ)..................................................... 196 Cadbury................................................................ 122 Cavalier Corporation............................................. 141 CDC Pharmaceuticals............................................ 171 Cerebos Gregg’s.................................................... 178 Chevron New Zealand............................................. 13 Christchurch City Holdings....................................... 55 Coca-Cola Amatil (NZ)............................................. 68 Coles Group New Zealand Holdings....................... 149 Combined Rural Traders Society............................... 42 Contact Energy........................................................ 11 Datacom Group....................................................... 51 DB Breweries.......................................................... 79 Delegat’s Group.................................................... 142 DFS New Zealand.................................................. 173 DGL Investments..................................................... 38 DHL Holdings (New Zealand)................................. 169 Downer EDI Engineering Group............................. 108 DSE (NZ)................................................................. 97 Dunedin City Holdings........................................... 134 Ebos Group............................................................. 25 Exego (NZ) Holdings.............................................. 158 ExxonMobil New Zealand Holdings.......................... 18 Fairfax New Zealand Holdings................................. 54 Farmlands Trading Society........................................ 59 Fernhoff................................................................ 118 Fisher & Paykel Appliances Holdings........................ 31 Fisher & Paykel Healthcare Corporation.................... 65 Flavoured Beverages Group Holdings....................... 80 Fletcher Building....................................................... 2 Fonterra Co-operative Group..................................... 1 Foodstuffs (Auckland)................................................ 6 Foodstuffs (Wellington) Co-operative....................... 10 Foodstuffs South Island............................................. 9 Ford Motor Company of New Zealand................... 106 Freightways........................................................... 104 Frucor Beverages..................................................... 87 Fuji Xerox New Zealand......................................... 164
Fulton Hogan.......................................................... 12 GE Crane NZ........................................................... 60 General Cable Holdings NZ.................................... 136 Genesis Power........................................................ 17 Geon Group Holdings............................................ 103 GlaxoSmithKline NZ.............................................. 195 Goodman Fielder New Zealand................................ 29 H J Heinz Company (New Zealand).......................... 43 Hallenstein Glasson Holdings................................. 148 Harvey Norman Stores (NZ)..................................... 41 Hellaby Holdings..................................................... 73 Hewlett-Packard New Zealand................................. 63 Holden New Zealand............................................. 114 Honda New Zealand.............................................. 193 Housing New Zealand............................................. 35 IBM New Zealand................................................... 90 Imperial Tobacco New Zealand.............................. 120 Infratil..................................................................... 16 Ingram Micro New Zealand Holdings....................... 57 ITW New Zealand.................................................. 194 JB Hi-Fi NZ............................................................ 190 Juken New Zealand............................................... 137 Kathmandu Holdings............................................. 130 Kiwi Income Property Trust..................................... 161 Kordia Group........................................................ 127 Kura........................................................................ 53 Landcorp Farming................................................. 170 Linde Holdings New Zealand................................. 139 Lion Nathan Wines and Spirits New Zealand.......... 159 Livestock Improvement Corporation....................... 200 Mainfreight............................................................. 32 Market Gardeners................................................. 109 MARS New Zealand.............................................. 166 Mazda Motors of New Zealand.............................. 152 McDonald’s Restaurants (New Zealand)................. 167 Mediaworks NZ..................................................... 117 Mercedes-Benz New Zealand................................ 181 Meridian Energy...................................................... 15 Methanex New Zealand.......................................... 70 Michael Hill International........................................ 76 Mighty River Power................................................. 22 Millstream Equities................................................ 100 Mitre 10 New Zealand............................................ 61 Nestle New Zealand................................................ 77 New Zealand Breweries........................................... 83 New Zealand Investment Holdings......................... 175 New Zealand Post................................................... 26 New Zealand Railways Corporation......................... 34 New Zealand Sugar Company................................ 133 New Zealand Wool Services International............... 189 Newmont Waihi Gold............................................ 154 Nissan New Zealand............................................. 176 Nobilo Holdings.................................................... 140 Noel Leeming Holdings............................................ 67 Norske Skog Tasman................................................ 72 Northpower.......................................................... 150 Nuplex Industries.................................................... 24 NZ Poultry Enterprises............................................. 84 NZ Snack Food Holdings........................................ 124 NZPM Group......................................................... 135 Oceana Gold Holdings (New Zealand)...................... 86 OfficeMax Holdings................................................. 85 Open Country Dairy............................................... 123 Opus International (NZ)........................................... 92 Oregon Group......................................................... 69 Orica Investments (NZ)............................................ 64 Pacific Brands Holdings (NZ).................................. 185
Pact Group (NZ).................................................... 121 Pan Pac Forest Products......................................... 126 Panasonic New Zealand........................................ 144 Paperlinx (NZ)....................................................... 186 Pepsico New Zealand Holdings.............................. 191 PGG Wrightson....................................................... 30 PMP (NZ).............................................................. 115 Port of Tauranga.................................................... 182 Ports of Auckland.................................................. 160 Powerco.................................................................. 99 Pumpkin Patch........................................................ 89 Radius Health Group............................................. 183 Rakon................................................................... 192 Ravensdown Fertiliser Co-operative......................... 40 Renaissance Corporation....................................... 156 Restaurant Brands NZ............................................ 105 Retirement Care (NZ)............................................ 147 RTA Pacific (NZ)....................................................... 36 Ryman Healthcare................................................. 172 Sanford................................................................... 75 SCA Hygiene Holding............................................ 112 Scales Corporation................................................ 145 Sealed Air (New Zealand)...................................... 153 Shell New Zealand Holding Company........................ 7 Siemens (NZ)........................................................... 74 Silver Fern Farms..................................................... 14 Sime Darby Motor Group......................................... 82 Skellerup Holdings................................................. 168 Sky Network Television............................................ 45 SKYCITY Entertainment Group................................. 39 Smiths City Group................................................. 138 Solid Energy NZ....................................................... 50 Sony New Zealand................................................ 188 Spotless Services (NZ).............................................. 95 Steel & Tube Holdings.............................................. 91 Tasman Steel Holdings............................................. 37 Telecom Corporation of New Zealand........................ 3 Television New Zealand........................................... 98 Telstra New Zealand Holdings.................................. 48 The Colonial Motor Company.................................. 78 The New Zealand Refining Company..................... 128 The Tatua Co-operative Dairy Company.................. 151 The Warehouse Group............................................. 19 Toll Group (NZ)..................................................... 101 Tourism Holdings.................................................. 165 Toyota New Zealand............................................... 47 Transfield Services (New Zealand)............................ 52 Transpacific Industries Group Finance (NZ)............. 107 Transpower New Zealand........................................ 46 TrustPower.............................................................. 44 Turners & Growers................................................... 56 Unilever New Zealand........................................... 116 Unison Networks................................................... 187 Vector..................................................................... 27 Vitaco Health Group.............................................. 179 Vodafone New Zealand........................................... 20 Wahn Investments................................................. 177 Watercare Services................................................ 155 Wesfarmers Industrial and Safety Holdings NZ....... 131 Westland Co-operative Dairy Company.................... 88 Weyville Holdings.................................................. 129 WGL Retail Holdings............................................. 132 Wilson & Horton..................................................... 66 Woolworths New Zealand Group............................... 4 YPG Holdings........................................................ 110 ZESPRI Group.......................................................... 21
DECEMBER 2010
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Rank
Previous Year
New Zealand Companies
1
1
2
2
3
3
4
5
5
4
6
8
7
6
8
7
9
11
10
12
11
13
12
17
13
9
14
14
15
16
16
18
17
15
18
10
19
19
20
20
21
23
22
22
23
26
24
21
25
25
26
28
27
30
28
33
29
32
30
27
Revenue ($000s)
Company Name (Head Office) Fonterra Co-operative Group Auckland Fletcher Building Auckland Telecom Corporation of New Zealand Wellington Woolworths New Zealand Group1 Auckland Air New Zealand (75% NZG) Auckland
% Change
Profit After Tax ($000s)
Rank
% Change
EBITDA ($000s)
Co-op
17,080,000
4.5
685,000
1
12.3
1,583,000
NZSX*
6,853,000
-4.0
282,000
4
842.1
716,000
NZSX*
5,297,000
-6.9
382,000
2
-4.5
1,785,000
*
5,015,933
1.0
-53,374
192
-186.3
283,042
NZSX
4,100,000
-19.2
82,000
19
290.5
491,000
Foodstuffs (Auckland) Auckland Shell New Zealand Holding Company2 Wellington BP New Zealand Holdings Wellington Foodstuffs South Island Christchurch Foodstuffs (Wellington) Co-operative Lower Hutt
Co-op
3,523,129
5.4
11,487
93
257.9
48,599
*
2,993,378
-19.6
331,632
3
5,101.2
382,395
*
2,933,328
-20.0
79,546
20
36.6
186,155
Co-op
2,354,216
4.0
12,100
90
1,124.7
25,379
Co-op
2,330,498
4.4
-6,804
170
24.9
7,305
Contact Energy Wellington Fulton Hogan Christchurch Chevron New Zealand Auckland Silver Fern Farms Dunedin Meridian Energy (50% MF, 50% MSOE) Wellington
NZSX*
2,172,949
-2.5
154,668
8
33.8
430,270
-
2,164,064
15.9
79,535
21
-21.3
134,118
*
2,113,297
-17.8
46,745
37
177.4
94,745
Co-op
2,064,176
3.0
43,597
39
16.0
101,181
SOE
2,063,910
8.5
184,049
7
106.2
570,418
Infratil Wellington Genesis Power (50% MF, 50% MSOE) Auckland ExxonMobil New Zealand Holdings Auckland The Warehouse Group Auckland Vodafone New Zealand Auckland
NZSX
1,970,800
11.6
95,000
16
174.0
428,000
SOE
1,897,583
-3.3
69,314
27
151.1
266,666
*
1,835,992
-24.7
7,046
108
105.5
63,152
NZSX
1,684,109
-2.8
60,540
32
-21.4
166,075
*
1,607,900
-0.5
121,600
10
-31.6
542,000
ZESPRI Group Mt Maunganui Mighty River Power (50% MF, 50% MSOE) Auckland Alliance Group Invercargill Nuplex Industries Auckland Ebos Group Christchurch
Co-op
1,550,934
5.1
25,890
54
8.2
45,651
SOE
1,511,514
2.2
84,614
18
-47.0
322,749
-
1,501,476
16.9
19,008
73
-43.2
56,489
NZSX
1,466,016
-2.4
66,982
30
251.2
138,011
NZSX
1,373,367
2.1
23,437
61
18.8
45,744
SOE
1,252,838
-1.6
1,279
135
-98.2
140,718
NZSX
1,194,896
-14.9
199,118
5
-47.5
580,429
*
1,192,618
6.2
7,301
107
-53.3
30,801
NZSX*
1,173,993
-0.8
-6,152
167
95.7
141,610
NZSX
1,171,806
-10.9
23,304
62
135.1
73,184
New Zealand Post (50% MF, 50% MSOE) Lower Hutt Vector Auckland ANZCO Foods Christchurch Goodman Fielder New Zealand Auckland PGG Wrightson Christchurch
A = annualised figures. * = more than 50% overseas controlled. NZSX = New Zealand Stock Exchange. Footnotes page 78. 66 | management.co.nz | DECEMBER 2010
EBIT ($000s)
% Return on Revenue
Total Assets ($000s)
1,099,000
6.4
14,169,000
2
0.4
4.8
5,667,000
3
13.1
40.07
15,800
07/10
510,000
7.4
5,714,000
7
-1.6
4.9
3,023,000
5
9.4
52.49
17,000
06/10
753,000
14.2
6,865,000
6
1.5
5.6
2,545,000
8
15.3
37.34
N/D
06/10
116,812
2.3
3,678,533
13
-0.7
-1.4
1,368,387
18
-4.0
37.07
N/D
06/09
194,000
4.7
4,597,000
11
-8.9
1.7
1,566,000
13
5.2
32.48
10,499
06/10
48,599
1.4
1,468,911
35
-1.8
0.8
633,910
31
1.8
42.77
1,000
02/10
361,617
12.1
953,588
48
-20.2
30.9
680,111
28
45.0
63.30
N/D
12/09
153,738
5.2
1,271,808
41
8.0
6.5
257,831
72
38.0
21.05
1,740
12/09
25,379
1.1
752,958
54
0.2
1.6
203,190
83
6.3
27.01
1,300
02/10
7,305
0.3
764,389
53
9.1
-0.9
148,960
104
-4.5
20.34
1,504
03/10
268,367
12.4
5,147,763
9
2.4
3.0
2,776,778
6
5.7
54.59
1,050
06/10
134,118
6.2
1,550,112
31
17.1
5.5
389,670
52
13.8
27.11
5,101
06/10
72,074
3.4
854,464
51
-27.8
4.6
407,270
49
11.5
39.97
130
12/09
71,335
3.5
603,197
69
-9.8
6.9
242,116
75
19.6
38.07
7,000
08/09
364,052
17.6
8,715,599
5
21.4
2.3
5,070,684
4
3.9
63.81
804
06/10
273,500
13.9
4,508,400
12
-4.2
2.1
1,731,300
12
5.6
37.57
3,000
03/10
154,900
8.2
2,532,324
16
-2.1
2.7
1,445,565
16
4.9
56.49
961
06/10
48,048
2.6
782,246
52
6.7
0.9
264,598
70
2.6
34.93
N/D
12/09
125,138
7.4
675,032
63
4.0
9.1
303,246
62
19.4
45.80
8,000
08/10
280,300
17.4
1,772,300
26
9.8
7.2
365,300
55
37.1
21.57
1,400
03/10
42,095
2.7
370,626
93
10.1
7.3
77,920
136
34.1
22.03
162
03/10
175,747
11.6
4,894,900
10
11.6
1.8
2,688,970
7
3.2
57.93
840
06/10
35,567
2.4
517,624
77
5.1
3.8
360,920
56
5.4
71.45
5,500
09/09
107,817
7.4
1,004,294
44
-4.1
6.5
523,330
35
12.8
51.03
240
06/10
41,552
3.0
518,343
76
3.7
4.6
182,790
89
13.6
35.91
110
06/10
54,313
4.3
13,075,472
4
15.7
0.0
832,530
24
0.2
6.83
N/D
06/10
419,974
35.1
5,550,905
8
0.2
3.6
2,084,208
9
9.6
37.59
N/D
06/10
21,223
1.8
491,475
79
11.3
1.6
249,096
73
3.1
53.39
2,800
09/09
117,186
10.0
1,578,761
30
-2.4
-0.4
228,555
80
-2.7
14.30
N/D
06/09
66,805
5.7
1,526,882
32
-1.1
1.5
635,470
30
4.5
41.38
2,500
06/10
Rank
% Change
% Return on Assets
% Return Total Equity on Total Proprietorship Approx Balance ($000s) Rank Equity Ratio (%) Employees Date
DECEMBER 2010
| management.co.nz | 67
Rank
Previous Year
New Zealand Companies
31
24
32
29
33
34
34
(-)
35
37
36
31
37
39
38
46
39
40
40
38
41
43
42
42
43
47
44
44
45
49
46
48
47
45
48
(-)
49
41
50
36
51
54
52
60
53
61
54
50
55
56
56
57
57
96
58
58
59
66
60
52
Revenue ($000s)
% Change
Profit After Tax ($000s)
Rank
NZSX
1,164,063
-15.1
-83,328
194
12.5
47,746
NZSX
1,132,720
-10.5
36,365
43
2.5
73,545
NZSX
1,107,489
-1.2
25,365
56
-57.9
44,808
SOE
1,106,543
N/A
194,497
6
N/A
514,815
Govt
988,000
3.8
-675,000
200
-2,209.4
397,000
*
919,576
-20.5
-14,199
180
-151.7
-7,833
*
905,678
-2.2
112,672
12
-20.4
185,665
*
851,519
15.0
67,708
29
23.6
123,681
NZSX
849,534
-0.5
101,868
15
-11.8
309,432
Co-op
835,952
-12.0
196
144
-98.7
42,587
*
802,925
1.8
25,037
57
-19.1
39,005
Soc
801,851
-0.1
1,177
136
-42.2
5,682
*
782,958
9.4
53,794
36
27.1
109,625
NZSX
759,672
-3.4
119,413
11
13.6
285,699
*
742,276
6.8
103,021
14
16.9
287,808
SOE
734,418
5.0
64,985
31
-30.1
355,322
*
726,863
-6.4
4,543
122
63.1
17,200
*
716,471
2.4
-52,139
191
6.0
175,803
Co-op
694,210
-18.5
5,542
117
270.9
53,158
SOE
693,941
-29.7
67,837
28
-38.8
162,789
*
667,273
9.6
30,246
49
13.8
60,809
*
625,485
9.4
12,341
88
9.1
39,676
-
605,552
6.7
22,752
64
-6.1
49,246
*
598,563
-11.6
-69,407
193
-200.7
186,150
-
595,454
0.1
54,990
34
-30.0
220,589
NZSX*
592,277
1.5
9,529
96
-32.6
37,952
*
586,039
N/A
4,187
126
N/A
20,575
-
571,335
-1.3
-2,656
157
-104.9
41,139
Soc
565,088
5.9
213
143
158.7
2,208
*
555,221
-14.7
-4,948
162
-194.5
18,679
Company Name (Head Office) Fisher & Paykel Appliances Holdings Auckland Mainfreight Auckland AFFCO Holdings (50% MF, 50% MSOE) Hamilton New Zealand Railways Corporation3 Wellington Housing New Zealand (100% NZG)4 Wellington RTA Pacific (NZ) Wellington Tasman Steel Holdings Auckland DGL Investments Auckland SKYCITY Entertainment Group Auckland Ravensdown Fertiliser Co-operative Christchurch Harvey Norman Stores (NZ) Auckland Combined Rural Traders Society Dunedin H J Heinz Company (New Zealand) Auckland TrustPower Tauranga Sky Network Television Auckland Transpower New Zealand (50% MF, 50% MSOE) Wellington Toyota New Zealand Palmerston North Telstra New Zealand Holdings Auckland Ballance Agri-Nutrients5 Tauranga Solid Energy NZ (50% MF,50% MSOE) Christchurch Datacom Group Wellington Transfield Services (New Zealand) Auckland Kura (50% TWU) Nelson Fairfax New Zealand Holdings Wellington Christchurch City Holdings (100% CCC) Christchurch Turners & Growers Auckland Ingram Micro New Zealand Holdings6 Auckland Blue Star Group7 Auckland Farmlands Trading Society Hastings GE Crane NZ Christchurch
A = annualised figures. * = more than 50% overseas controlled. NZSX = New Zealand Stock Exchange. Footnotes page 78. 68 | management.co.nz | DECEMBER 2010
% Change
EBITDA ($000s)
EBIT ($000s)
% Return on Revenue
Total Assets ($000s)
-74,875
-6.4
57,244
% Return Total Equity on Total Proprietorship Approx Balance ($000s) Rank Equity Ratio (%) Employees Date
Rank
% Change
% Return on Assets
1,652,199
28
-17.2
-4.6
601,152
32
-14.3
32.95
3,300
03/10
5.1
565,377
72
3.2
6.5
297,443
65
12.5
53.44
1,600
03/10
30,504
2.8
434,576
84
-0.9
5.8
340,948
58
7.7
78.09
3,500
09/09
233,811
21.1
13,248,827
3
-0.6
1.5
12,419,432
1
1.6
93.44
4,000
06/10
217,000
22.0
15,443,000
1
3.6
-4.4
11,528,000
2
-5.8
75.96
1,118
06/10
-8,143
-0.9
389,248
90
-49.0
-2.5
140,172
108
-4.6
24.34
800
12/09
149,442
16.5
2,317,890
19
6.2
5.0
2,043,849
10
5.8
90.83
N/D
06/09
95,888
11.3
616,171
66
-1.3
10.9
386,326
53
17.6
62.28
N/D
06/09
241,925
28.5
1,636,240
29
-12.6
5.8
759,517
26
13.6
43.29
4,500
06/10
25,275
3.0
691,197
62
-10.0
0.0
326,869
59
0.1
44.80
600
05/10
39,005
4.9
274,601
113
4.0
9.3
152,915
101
17.8
56.77
1,684
06/09
1,974
0.2
153,490
157
11.5
0.8
45,822
157
2.7
31.48
447
03/10
86,691
11.1
666,811
64
6.1
8.3
430,723
46
13.4
66.49
N/D
04/10
224,564
29.6
2,558,797
15
1.3
4.7
1,437,146
17
8.3
56.51
450
03/10
175,302
23.6
1,909,161
24
1.9
5.4
1,250,947
20
8.4
66.15
1,000
06/10
185,734
25.3
3,565,497
14
16.3
2.0
1,454,981
14
4.6
43.88
680
06/10
12,513
1.7
252,818
120
3.9
1.8
61,216
144
7.5
24.67
209
03/10
24,891
3.5
1,703,599
27
-0.1
-3.1
368,221
54
-13.2
21.61
1,400
06/09
27,224
3.9
459,234
83
-17.9
1.1
299,889
64
1.9
58.90
625
05/10
116,232
16.7
1,000,193
45
26.3
7.6
443,394
45
15.5
49.49
1,223
06/10
44,639
6.7
279,257
111
18.1
11.7
123,231
112
26.6
47.79
3,383
03/10
19,559
3.1
361,823
94
0.7
3.4
174,745
93
7.3
48.45
3,000
06/09
39,069
6.5
735,756
55
11.4
3.3
465,510
40
5.0
66.69
N/D
06/09
93,116
15.6
2,203,606
22
-0.5
-3.1
479,658
39
-13.5
21.71
2,400
06/09
144,664
24.3
2,286,120
20
3.4
2.4
1,366,536
19
4.0
60.78
4
06/10
20,002
3.4
425,357
85
2.0
2.3
293,948
66
3.3
69.78
N/D
12/09
15,630
2.7
209,157
131
N/A
2.0
6,058
193
107.0
N/A
310
12/09
18,922
3.3
419,608
87
12.7
-0.7
110,958
116
-2.4
28.03
700
06/10
2,208
0.4
110,806
178
11.6
0.2
41,451
165
0.5
39.47
358
06/10
8,950
1.6
332,079
97
-14.3
-1.4
56,755
148
-7.0
15.77
900
06/09
DECEMBER 2010
| management.co.nz | 69
Rank
Previous Year
New Zealand Companies
61
64
62
72
63
53
64
63
65
69
66
55
67
62
68
68
69
(-)
70
51
71
91
72
97
73
73
74
178
75
74
76
82
77
80
78
70
79
81
80
(-)
81
88
82
59
83
87
84
65
85
86
86
101
87
(-)
88
(-)
89
78
90
83
Revenue ($000s)
Company Name (Head Office) Mitre 10 New Zealand Auckland Bunnings Auckland Hewlett-Packard New Zealand8 Auckland Orica Investments (NZ) Lower Hutt Fisher & Paykel Healthcare Corporation Auckland
% Change
Profit After Tax ($000s)
Rank
% Change
EBITDA ($000s)
-
548,954
3.4
709
140
131.8
6,163
*
541,524
9.2
-2,377
153
-281.5
29,919
*
539,320
-12.0
-8,857
174
-132.3
-7,885
*
527,673
-1.8
72,461
25
-21.0
105,133
NZSX
508,248
3.8
71,631
26
15.1
130,709
Wilson & Horton Auckland Noel Leeming Holdings Auckland Coca-Cola Amatil (NZ) Auckland Oregon Group9 Auckland Methanex New Zealand Auckland
*
503,318
-16.9
-3,270
158
-233.3
84,240
*
499,610
-7.0
-4,414
161
-168.9
10,224
*
496,428
0.8
57,333
33
15.1
119,134
*
490,473
23.4
79,469
22
402.1
104,113
*
488,983
-26.0
-28,951
187
-63.5
-5,788
Bidvest New Zealand Auckland Norske Skog Tasman Kawerau Hellaby Holdings Auckland Siemens (NZ) Auckland Sanford Auckland
*
477,005
10.3
8,330
101
-27.4
27,444
*
476,957
37.1
105,699
13
250.4
212,607
NZSX
459,474
-4.5
10,301
95
1,357.0
29,311
*
454,498
178.6
8,250
102
69.3
18,549
NZSX
449,688
-5.9
39,139
40
-26.7
76,668
NZSX*
444,886
7.7
26,509
52
-60.3
46,721
*
437,728
4.7
34,578
45
8.7
57,848
NZSX
434,395
-10.9
-1,372
149
-129.7
13,467
*
434,094
3.7
12,595
86
-56.8
37,318
*
423,596
-1.1
-43,989
190
-30.0
54,610
NZSX
417,994
7.1
21,026
66
80.7
41,602
*
413,571
-27.9
-22,335
184
-40.3
-3,821
*
406,116
3.4
44,774
38
4.2
84,588
-
405,902
-13.1
22,609
65
76.8
74,706
*
403,118
2.6
20,430
67
3,784.0
40,357
NZSX*
393,295
25.3
126,766
9
1,248.6
301,132
*
389,489
-15.2
35,764
44
-75.4
63,166
Co-op
384,832
-16.5
-19,651
183
-872.8
-4,956
NZSX
382,198
-10.9
25,502
55
195.4
51,719
*
380,953
-6.1
20,152
68
41.2
43,908
Michael Hill International Wellington Nestle New Zealand Auckland The Colonial Motor Company Wellington DB Breweries Auckland Flavoured Beverages Group Holdings Auckland Briscoe Group10 Auckland Sime Darby Motor Group Auckland New Zealand Breweries Auckland NZ Poultry Enterprises11 Auckland OfficeMax Holdings Auckland Oceana Gold Holdings (New Zealand) Dunedin Frucor Beverages Auckland Westland Co-operative Dairy Company12 Hokitika Pumpkin Patch Auckland IBM New Zealand Lower Hutt
A = annualised figures. * = more than 50% overseas controlled. NZSX = New Zealand Stock Exchange. Footnotes page 78. 70 | management.co.nz | DECEMBER 2010
EBIT ($000s)
% Return on Revenue
Total Assets ($000s)
Rank
% Change
% Return on Assets
% Return Total Equity on Total Proprietorship Approx Balance ($000s) Rank Equity Ratio (%) Employees Date
6,163
1.1
155,582
155
6.9
0.5
45,306
160
2.5
30.09
132
06/10
20,904
3.9
415,884
88
16.1
-0.6
38,526
169
-6.0
9.95
1,938
06/10
-9,020
-1.7
299,769
107
7.5
-3.1
56,045
149
-14.6
19.37
N/D
10/09
99,170
18.8
1,025,694
43
2.0
7.1
940,366
22
7.8
92.58
N/D
09/09
113,259
22.3
475,059
81
14.8
16.1
293,164
67
28.8
65.97
2,340
03/10
33,644
6.7
1,375,961
36
14.9
-0.3
459,312
42
-0.7
35.69
N/D
12/09
3,124
0.6
209,376
130
-5.5
-2.0
23,517
182
-17.2
10.91
1,360
03/09
97,766
19.7
699,107
61
3.2
8.3
355,506
57
17.6
51.64
975
12/09
93,378
19.0
726,350
57
-1.2
10.9
414,492
48
21.2
56.72
579
06/10
-28,242
-5.8
346,055
95
-13.1
-7.8
94,277
125
-18.9
25.33
130
12/09
22,297
4.7
131,732
163
12.4
6.7
64,418
141
13.8
51.75
917
06/10
139,694
29.3
712,695
60
8.6
15.4
280,068
69
46.5
40.92
N/D
12/09
21,944
4.8
229,278
124
-7.2
4.3
100,099
122
11.2
42.02
2,282
06/10
12,246
2.7
100,445
181
11.5
8.7
44,053
163
16.8
46.24
227
09/09
62,440
13.9
720,889
59
8.5
5.7
548,521
33
7.3
79.19
N/D
09/09
36,475
8.2
258,843
117
5.3
10.5
159,923
98
17.3
63.38
N/D
06/10
50,204
11.5
126,632
167
-12.2
25.5
13,459
186
295.3
9.94
N/D
12/09
10,039
2.3
206,872
134
-6.1
-0.6
117,340
113
-1.1
54.93
762
06/10
19,544
4.5
301,449
106
-3.9
4.1
196,410
86
6.4
63.88
430
09/09
43,615
10.3
1,322,913
38
-2.7
-3.3
501,423
36
-8.6
37.39
N/D
09/09
31,310
7.5
173,707
145
-2.0
12.0
127,621
110
16.9
72.74
1,500
01/10
-8,076
-2.0
239,994
121
-5.1
-9.1
-38,110
198
N/A
-15.47
760
06/09
62,817
15.5
957,834
46
33.5
5.3
496,636
37
9.1
59.28
850
09/09
60,645
14.9
648,631
65
-0.6
3.5
230,504
79
10.2
35.44
N/D
04/10
34,055
8.4
273,045
114
8.1
7.8
178,112
92
12.2
67.77
1,120
12/09
185,941
47.3
507,025
78
-4.7
24.4
143,101
107
184.8
27.55
495
12/09
54,739
14.1
564,934
73
176.1
9.3
462,457
41
12.2
120.20
501
12/09
-24,380
-6.3
283,602
109
-13.0
-6.4
171,540
95
-11.2
56.26
345
07/09
40,309
10.5
178,589
143
-5.1
13.9
80,867
134
30.1
44.10
950
07/10
33,112
8.7
237,256
123
-39.6
6.4
102,257
120
21.9
32.47
800
12/09
DECEMBER 2010
| management.co.nz | 71
Rank
Previous Year
New Zealand Companies
91
71
92
92
93
75
94
(-)
95
94
96
93
97
(-)
98
89
99
(-)
100
95
101
35
102
76
103
90
104
98
105
103
106
77
107
100
108
135
109
105
110
(-)
111
99
112
110
113
(-)
114
79
115
106
116
117
117
108
118
104
119
128
120
120
Revenue ($000s)
Company Name (Head Office) Steel & Tube Holdings Lower Hutt Opus International (NZ)13 Wellington Amcor Packaging (New Zealand) Auckland Beca Group Auckland Spotless Services (NZ) Auckland
% Change
Profit After Tax ($000s)
Rank
% Change
EBITDA ($000s)
NZSX*
380,736
-21.6
5,714
116
-78.1
22,637
NZSX*
371,819
-1.3
18,613
75
25.7
34,059
*
369,065
-16.1
-7,435
171
-118.6
39,752
-
366,452
8.9
33,170
47
7.4
56,583
*
366,035
-0.2
5,386
119
7.9
28,745
NZSX
364,003
-1.4
29,694
51
-28.8
285,878
*
362,085
6.2
13,906
81
-34.0
25,926
SOE
359,438
-7.2
-26,026
185
-1,338.2
237,508
-
357,551
-8.6
19,785
69
144.3
171,066
-
352,716
-3.3
-1,969
151
93.6
81,081
*
341,475
-68.9
-36,135
188
-112.2
5,501
*
336,991
-23.0
12,063
91
-60.4
19,235
*
335,007
-12.7
-182,852
198
-418.7
-13,439
NZSX
328,755
-3.3
23,164
63
-33.0
64,142
NZSX
318,533
2.8
19,536
72
136.7
42,733
*
314,167
-27.4
5,475
118
-21.6
8526
NZSX*
308,349
-2.6
14,393
80
-76.7
107,414
NZSX*
305,088
39.1
7,909
105
367.2
24,129
Co-op
305,078
2.3
4,237
123
-41.4
15,271
*
304,108
-3.6
-338,325
199
-452.9
1,057
British American Tobacco Holdings (NZ) Auckland SCA Hygiene Holding Auckland ABB Grain (NZ)16 Auckland Holden New Zealand Auckland PMP (NZ) Auckland
*
297,009
-6.2
54,231
35
-49.2
154,651
*
293,143
5.4
-16,022
182
40.7
19,344
*
292,504
11.3
-2,580
156
-142.1
2,731
*
283,426
-32.4
684
141
-79.7
2,45
*
277,756
-6.7
-5,413
164
-218.4
15,232
Unilever New Zealand Auckland Mediaworks NZ17 Auckland Fernhoff Christchurch Allied Foods (NZ) Auckland Imperial Tobacco New Zealand Lower Hutt
*
272,183
5.2
4,904
120
-64.0
10,075
-
267,975
-6.9
-91,420
195
-274.3
51,600
*
266,661
-14.1
6,488
112
-32.0
55,535
*
266,613
11.7
13,221
83
51.6
25,894
*
266,437
7.8
12,548
87
15.9
21,990
Auckland International Airport Auckland DSE (NZ)14 Auckland Television New Zealand (50% MF, 50% MSOE) Auckland Powerco New Plymouth Millstream Equities (69% MFL) Auckland Toll Group (NZ) Auckland Alcatel-Lucent New Zealand Wellington Geon Group Holdings Auckland Freightways Auckland Restaurant Brands NZ Auckland Ford Motor Company of New Zealand Auckland Transpacific Industries Group Finance (NZ) Auckland Downer EDI Engineering Group Hamilton Market Gardeners Christchurch YPG Holdings15 Auckland
A = annualised figures. * = more than 50% overseas controlled. NZSX = New Zealand Stock Exchange. Footnotes page 78. 72 | management.co.nz | DECEMBER 2010
EBIT ($000s)
% Return on Revenue
Total Assets ($000s)
Rank
% Change
% Return on Assets
% Return Total Equity on Total Proprietorship Approx Balance ($000s) Rank Equity Ratio (%) Employees Date
16,151
4.2
218,159
128
-7.2
2.5
145,549
106
3.9
64.22
711
06/10
27,851
7.5
213,325
129
0.2
8.7
57,939
146
35.2
27.19
2,291
12/09
27,259
7.4
525,214
75
-42.4
-1.0
300,135
63
-2.4
41.77
860
06/09
48,319
13.2
167,059
149
22.9
21.9
95,566
124
40.5
63.08
1,587
03/10
14,222
3.9
159,717
152
-8.8
3.2
42,860
164
13.1
25.61
N/D
06/09
230,142
63.2
2,262,058
21
-26.8
1.1
1,913,634
11
1.6
71.53
290
06/10
21,158
5.8
92,637
184
-3.3
14.8
57,350
147
27.6
60.88
N/D
06/09
-13,561
-3.8
258,689
118
-15.0
-9.2
157,055
100
-15.2
55.78
N/D
06/09
98,269
27.5
1,874,806
25
2.0
1.1
494,738
38
4.6
26.65
247
06/10
60,183
17.1
1,474,176
34
1.5
-0.1
453,840
44
-0.4
31.01
N/D
06/09
1,136
0.3
1,094,027
42
-38.7
-2.5
725,425
27
-4.9
50.38
N/D
06/09
17,389
5.2
196,522
138
-19.6
5.5
55,856
150
20.9
25.33
N/D
12/09
-149,465
-44.6
327,559
100
-33.9
-44.4
-101,806
200
N/A
-24.73
400
06/09
54,281
16.5
382,508
91
-2.9
6.0
157,926
99
15.2
40.69
1,750
06/10
29,240
9.2
102,970
180
1.9
19.2
48,670
155
45.6
47.71
4,260
02/10
8,024
2.6
126,777
166
-34.4
3.4
66,178
140
6.8
41.35
70
12/09
81,707
26.5
1,288,082
40
-6.9
1.1
393,922
51
3.6
29.49
1,800
06/09
19,316
6.3
106,768
179
-7.6
7.1
33,880
172
26.4
30.48
60
06/09
12,112
4.0
186,578
141
10.0
2.4
72,033
138
6.1
40.45
360
06/10
-216,467
-71.2
2,520,393
17
-6.2
-13.0
232,314
77
-89.0
8.92
615
06/09
152,535
51.4
405,362
89
20.4
14.6
84,748
131
45.7
22.84
125
12/09
-8,006
-2.7
329,805
98
-5.2
-4.7
81,070
132
-28.6
23.92
590
12/09
1,791
0.6
204,759
135
59.3
-1.5
7,493
190
-29.4
4.50
N/D
09/09
2,294
0.8
120,930
172
-7.2
0.5
44,110
162
1.6
35.11
35
12/09
3,779
1.4
139,936
161
0.3
-3.9
-4,606
195
-1046.0
-3.30
N/D
06/09
6,313
2.3
99,270
182
1.8
5.0
40,110
166
11.3
40.77
N/D
12/09
-91,227
-34.0
467,792
82
-21.7
-17.2
312,788
60
-25.4
58.72
N/D
08/09
28,873
10.8
0
200
-100.0
2.6
26,262
178
23.1
10.73
500
12/09
18,564
7.0
127,261
165
-11.9
9.7
93,008
126
12.7
68.44
1,000
08/09
18,715
7.0
68,575
189
4.0
18.7
38,634
168
37.9
57.45
N/D
09/09
DECEMBER 2010
| management.co.nz | 73
Rank
Previous Year
New Zealand Companies
121
112
122
107
123
(-)
124
124
125
158
126
109
127
127
128
84
129
122
130
153
131
118
132
134
133
148
134
138
135
123
136
115
137
132
138
129
139
116
140
151
141
119
142
130
143
137
144
141
145
157
146
152
147
(-)
148
149
149
140
150
154
Revenue ($000s)
Company Name (Head Office) Pact Group (NZ) Dunedin Cadbury Auckland Open Country Dairy18 Waharoa NZ Snack Food Holdings Auckland Abano Healthcare Group Auckland Pan Pac Forest Products Napier Kordia Group (50% MF, 50% MSOE) Auckland The New Zealand Refining Company Whangarei Weyville Holdings Timaru Kathmandu Holdings19 Christchurch Wesfarmers Industrial and Safety Holdings NZ Auckland WGL Retail Holdings20 Auckland New Zealand Sugar Company Auckland Dunedin City Holdings (100% DCC) Dunedin NZPM Group Palmerston North General Cable Holdings NZ Christchurch Juken New Zealand Auckland Smiths City Group Christchurch Linde Holdings New Zealand21 Auckland Nobilo Holdings Kumeu Cavalier Corporation Auckland Delegat’s Group Auckland Bridgestone New Zealand Auckland Panasonic New Zealand Auckland Scales Corporation Christchurch ABB Auckland Retirement Care (NZ) Auckland Hallenstein Glasson Holdings Auckland Coles Group New Zealand Holdings22 Auckland Northpower (100% NEPT) Whangarei
% Change
Rank
% Change
EBITDA ($000s)
*
265,905
-1.2
23,860
59
-7.4
62,172
*
263,078
-10.6
8,003
103
-54.8
13,267
-
A 260,048
N/A
4,200
125
N/A
19,344
*
259,494
6.4
13,119
84
352.2
59,116
NZSX
257,307
37.0
78,948
23
579.8
96,803
*
254,801
-9.5
19,588
70
690.2
40,253
SOE
254,067
6.0
-1,127
148
-234.5
41,266
NZSX
250,716
-37.1
23,622
60
-81.1
106,619
*
250,279
1.8
377
142
150.8
11,369
*
248,089
14.7
9,387
97
-37.0
35,611
*
247,035
-2.7
5,746
115
-16.1
13,540
*
246,934
6.8
2,040
132
-69.4
15,373
*
241,192
18.8
15,700
79
-2.7
28,152
-
233,664
8.7
18,110
76
108.1
81,726
Co-op
231,701
-5.6
-2,487
155
16.1
8,649
*
228,597
-12.1
-15,560
181
15.7
-5,964
*
228,017
1.4
86,689
17
152.5
146,481
NZSX
226,208
-5.4
1,644
133
61.8
11,484
*
226,039
-0.7
24,446
58
12.8
53,573
*
224,359
15.0
12,893
85
212.9
51,649
NZSX
223,061
-10.4
11,369
94
-23.6
29,993
NZSX
222,304
-3.1
-6,719
168
-121.8
29,788
*
220,766
0.5
-39,142
189
-450.5
-49,284
*
215,438
2.4
1,424
134
5,376.9
2,581
-
211,126
13.1
13,622
82
79.8
35,359
*
209,607
7.9
6,770
109
-22.9
14,660
*
209,331
68.0
-169,924
197
-2,762.6
27,048
NZSX
208,267
4.5
19,581
71
52.9
35,155
*
206,508
-9.0
1,065
137
-90.2
3,501
-
206,375
8.3
3,939
128
-51.9
25,823
A = annualised figures. * = more than 50% overseas controlled. NZSX = New Zealand Stock Exchange. Footnotes page 78. 74 | management.co.nz | DECEMBER 2010
Profit After Tax ($000s)
EBIT ($000s)
% Return on Revenue
Total Assets ($000s)
Rank
% Change
% Return on Assets
% Return Total Equity on Total Proprietorship Approx Balance ($000s) Rank Equity Ratio (%) Employees Date
42,348
15.9
310,116
103
0.3
7.7
106,621
118
23.4
34.43
260
06/10
11,704
4.4
218,687
127
-45.3
2.6
163,000
96
4.0
52.70
780
12/09
12,318
4.7
321,429
101
N/A
1.5
199,345
85
2.5
N/A
N/D
07/09
46,217
17.8
584,618
71
-0.3
2.2
223,762
81
6.1
38.21
N/D
12/09
85,999
33.4
161,906
150
-29.7
40.2
113,390
114
89.8
57.80
N/D
05/10
26,539
10.4
424,138
86
2.8
4.7
309,630
61
6.7
73.99
326
03/10
7,900
3.1
278,323
112
5.8
-0.4
96,996
123
-1.1
35.84
806
06/09
39,584
15.8
948,461
49
0.7
2.5
540,510
34
4.2
57.20
N/D
12/09
3,558
1.4
208,982
132
-1.4
0.2
128,638
109
0.3
61.11
540
06/09
29,638
11.9
319,414
102
-8.6
2.8
239,127
76
5.0
71.51
N/D
07/10
11,771
4.8
116,006
175
-0.8
4.9
50,542
153
12.1
43.40
700
06/09
12,546
5.1
201,147
136
7.4
1.1
26,168
179
8.0
13.47
N/D
08/09
23,507
9.7
125,353
168
10.0
13.1
89,525
129
19.0
74.83
N/D
03/10
63,154
27.0
889,710
50
18.1
2.2
152,238
103
11.9
18.53
1
06/10
2,101
0.9
112,576
177
-2.1
-2.2
29,225
176
-8.1
25.68
554
03/10
-14,911
-6.5
158,202
154
-9.5
-9.3
74,706
137
-18.3
44.87
467
12/09
132,391
58.1
592,720
70
-11.8
13.7
213,684
82
62.2
33.78
825
03/10
8,848
3.9
174,481
144
-2.8
0.9
45,700
158
3.6
25.82
700
04/10
40,522
17.9
603,370
68
-8.9
3.9
425,394
47
5.5
67.23
N/D
12/09
40,014
17.8
535,986
74
-1.6
2.4
263,604
71
5.8
48.78
N/D
02/10
24,412
10.9
191,024
140
-2.8
5.9
91,451
127
12.7
47.20
950
06/10
8,530
3.8
340,509
96
-6.7
-1.9
152,394
102
-4.2
43.19
N/D
06/10
-51,598
-23.4
154,784
156
-10.5
-23.9
71,352
139
-43.0
43.54
560
12/09
2,199
1.0
52,768
194
10.2
2.8
23,048
183
6.8
45.79
113
03/10
27,195
12.9
302,885
105
15.4
4.8
112,960
115
14.2
39.97
15
06/09
10,517
5.0
124,602
169
1.1
5.5
47,911
156
13.8
38.66
N/D
12/09
-106,058
-50.7
726,163
58
-10.8
-22.1
-93,825
199
N/A
-12.18
N/D
05/09
29,232
14.0
83,641
187
6.8
24.2
62,064
143
33.1
76.66
1,100
08/10
838
0.4
270,915
115
-14.3
0.4
243,961
74
0.4
83.11
900
06/09
11,060
5.4
372,811
92
2.8
1.1
231,365
78
1.7
62.91
840
03/10
DECEMBER 2010
| management.co.nz | 75
Rank
Previous Year
New Zealand Companies
151
(-)
152
(-)
153
144
154
155
155
160
156
156
157
(-)
158
(-)
159
169
160
170
161
162
162
136
163
146
164
143
165
165
166
(-)
167
168
168
159
169
(-)
170
166
171
161
172
189
173
175
174
171
175
139
176
172
177
121
178
186
179
177
180
193
Revenue ($000s)
Company Name (Head Office)
% Change
Profit After Tax ($000s)
Rank
% Change
EBITDA ($000s)
The Tatua Co-operative Dairy Company23 Morrinsville Mazda Motors of New Zealand Auckland Sealed Air (New Zealand) Auckland Newmont Waihi Gold Waihi Watercare Services Auckland
Co-op
204,742
21.7
37
145
-99.0
8,062
*
202,948
2.4
3,524
129
1,368.3
6,054
*
202,205
-0.4
16,861
77
186.0
29,177
*
201,903
6.1
30,879
48
-1.1
91,274
-
200,033
8.2
-27,709
186
-167.4
84,437
Renaissance Corporation Auckland Apple Sales New Zealand Auckland Exego (NZ) Holdings Auckland Lion Nathan Wines and Spirits New Zealand Auckland Ports of Auckland (100% ARH) Auckland
NZSX
196,901
3.6
-2,208
152
-313.3
733
*
195,655
113.9
4,168
127
37.0
5,363
*
193,672
-3.7
-5,430
165
-462.1
7,169
*
193,119
14.0
6,265
113
26.8
16,781
CCO
189,432
12.7
37,192
42
588.1
95,434
Kiwi Income Property Trust Auckland Avon Pacific Holdings Auckland Ashburton Trading Society24 Ashburton Fuji Xerox New Zealand Auckland Tourism Holdings Auckland
NZSX
188,579
2.6
-12,433
178
92.6
49,231
*
187,702
-14.0
16,296
78
482.2
31,215
Soc
A 186,109
-7.5
-359
146
-140.5
1,325
*
185,464
-9.3
-6,766
169
-138.7
7,268
NZSX
183,682
3.8
4,613
121
60.6
49,461
*
183,397
-0.1
7,934
104
-14.4
16,476
*
183,126
7.9
34,050
46
34.2
60,770
NZSX
181,806
-2.5
11,958
92
30.3
27,549
*
178,061
-10.9
7,783
106
-5.5
19,593
SOE
176,400
-5.0
-5,841
166
-156.5
16,349
Co-op
176,238
-4.3
719
139
52.7
1,569
NZSX
176,024
17.6
78,417
24
18.7
93,773
*
175,291
5.9
12,134
89
554.1
20,483
*
173,859
2.7
26,034
53
122.4
33,546
*
172,494
-19.0
6,562
110
-38.9
21,094
*
171,531
3.4
5,894
114
-24.9
7,417
*
171,517
-30.0
-1,597
150
-113.0
3,841
*
169,597
12.5
9,252
98
-5.2
16,932
*
168,500
2.9
-12,835
179
-66.4
8,633
*
164,503
17.5
29,987
50
159.9
48,486
MARS New Zealand Auckland McDonald’s Restaurants (New Zealand) Auckland Skellerup Holdings Auckland DHL Holdings (New Zealand) Auckland Landcorp Farming (50% MF, 50% MSOE) Wellington CDC Pharmaceuticals Christchurch Ryman Healthcare Christchurch DFS New Zealand Auckland Bupa Healthcare New Zealand Auckland New Zealand Investment Holdings25 Auckland Nissan New Zealand Auckland Wahn Investments Auckland Cerebos Gregg’s Auckland Vitaco Health Group Auckland Alesco New Zealand and Subsidiaries Wellington
A = annualised figures. * = more than 50% overseas controlled. NZSX = New Zealand Stock Exchange. Footnotes page 78. 76 | management.co.nz | DECEMBER 2010
EBIT ($000s)
% Return on Revenue
Total Assets ($000s)
Rank
% Change
% Return on Assets
% Return Total Equity on Total Proprietorship Approx Balance ($000s) Rank Equity Ratio (%) Employees Date
2,622
1.3
129,409
164
1.4
0.0
44,655
161
0.1
34.75
196
07/09
5,731
2.8
65,035
191
-16.4
4.9
39,957
167
8.1
55.97
25
03/10
24,555
12.1
237,919
122
-7.1
6.8
199,951
84
8.8
80.96
N/D
12/09
49,834
24.7
280,229
110
18.8
12.0
182,071
91
18.5
70.55
N/D
12/09
15,115
7.6
2,470,790
18
-1.3
-1.1
1,452,613
15
-1.9
58.41
420
06/10
-2,290
-1.2
43,676
197
-9.1
-4.8
12,932
187
-15.7
28.19
400
12/09
5,363
2.7
89,643
185
50.1
5.6
7,405
191
78.3
9.92
N/D
09/09
4,279
2.2
173,491
146
-0.3
-3.1
27,675
177
-17.3
15.93
760
06/09
15,183
7.9
200,533
137
49.8
3.7
55,067
151
12.1
32.93
850
09/09
69,895
36.9
732,284
56
-5.3
4.9
396,750
50
10.1
52.70
539
06/10
49,231
26.1
1,984,822
23
3.6
-0.6
908,572
23
-1.4
46.58
N/D
03/10
25,466
13.6
122,513
171
-23.4
11.5
80,898
133
22.4
57.27
N/D
06/09
668
0.4
25,131
199
-14.5
-1.3
9,815
189
-3.6
36.00
50
06/10
722
0.4
118,019
174
7.5
-5.9
10,931
188
-47.3
9.60
580
03/10
10,848
5.9
268,126
116
-4.7
1.7
182,215
90
2.5
66.34
540
06/10
12,713
6.9
62,206
193
12.6
13.5
34,047
171
26.4
57.97
180
12/09
49,600
27.1
289,582
108
18.0
12.7
145,886
105
26.5
54.53
9,300
12/09
20,643
11.4
172,778
147
-3.0
6.8
100,890
121
13.9
57.51
670
06/10
14,863
8.3
159,630
153
-5.2
4.7
58,408
145
12.6
35.61
N/D
12/09
3,792
2.1
1,521,949
33
-8.8
-0.4
1,237,171
21
-0.4
77.55
600
06/10
1,408
0.8
36,856
198
9.8
2.0
7,083
192
10.5
20.11
75
03/10
87,368
49.6
1,329,360
37
13.3
6.3
456,554
43
18.1
36.48
2,100
03/10
17,410
9.9
50,369
195
30.9
27.3
-5,171
196
N/A
-11.64
N/D
12/09
25,497
14.7
490,341
80
2.6
5.4
124,806
111
35.3
25.78
2,168
12/09
14,540
8.4
161,821
151
-12.6
3.8
22,830
184
26.3
13.16
180
12/09
6,623
3.9
146,637
158
10.0
4.2
108,836
117
5.6
77.76
30
03/10
-582
-0.3
131,864
162
-13.9
-1.1
80,104
135
-2.0
56.20
3
12/09
11,657
6.9
115,542
176
5.1
8.2
89,527
128
10.8
79.41
350
09/09
2,028
1.2
207,468
133
-1.0
-6.2
62,447
142
-20.2
29.95
N/D
03/10
32,584
19.8
141,558
160
1.9
21.4
50,194
154
85.2
35.80
N/D
05/09
DECEMBER 2010
| management.co.nz | 77
Rank
Previous Year
New Zealand Companies
181
181
182
184
183
182
184
183
185
150
186
167
187
227
188
125
189
164
190
(-)
191
(-)
192
185
193
126
194
174
195
180
196
142
197
192
198
198
199
(-)
200
173
Company Name (Head Office) Mercedes-Benz New Zealand Auckland Port of Tauranga Tauranga Radius Health Group Auckland AgResearch (50% MF, 50% MCRI) Hamilton Pacific Brands Holdings (NZ) Auckland
% Change
Profit After Tax ($000s)
Rank
% Change
EBITDA ($000s)
*
162,849
2.8
4,233
124
-14.0
17,538
NZSX
160,730
3.9
38,016
41
-15.9
93,632
-
157,997
-3.1
-2,457
154
41.2
7,909
CRI
156,712
0.5
-8,592
172
-1,039.5
16,531
NZSX*
156,152
-20.5
-8,826
173
-147.1
2,669
Paperlinx (NZ) Auckland Unison Networks Hastings Sony New Zealand Auckland New Zealand Wool Services International Christchurch JB Hi-Fi NZ Auckland
*
156,038
-9.9
2,380
130
4.0
8,053
-
155,264
44.9
18,860
74
31.5
59,206
*
152,618
-37.1
-10,204
176
-245.1
-7,836
-
150,757
-16.2
-4,380
160
-283.3
5,341
*
150,657
37.7
-3,564
159
32.3
-2,063
Pepsico New Zealand Holdings Auckland Rakon Auckland Honda New Zealand Auckland ITW New Zealand Auckland GlaxoSmithKline NZ Auckland
*
149,970
2.6
-10,893
177
-10.8
9,559
NZSX
149,916
4.8
-5,361
163
-220.0
4,886
*
149,741
-37.8
2,242
131
440.2
25,785
*
148,183
-10.5
8,896
99
-51.8
18,700
*
147,902
-6.6
6,515
111
-26.9
9,681
*
145,438
-30.2
989
138
-45.5
3,306
SOE
145,356
3.6
-940
147
-120.8
22,295
*
140,587
6.8
-9,081
175
-340.8
6,111
-
138,842
3.8
-152,118
196
21.1
-27,935
Co-op
137,542
-17.1
8,349
100
-66.2
26,343
CablePrice (NZ) Lower Hutt Airways Corporation of New Zealand (50% MF, 50% MSOE) Wellington Aperio Group (New Zealand) Auckland AMP NZ Office Trust Wellington Livestock Improvement Corporation Hamilton
Top 200 FOOTNOTES 1 2 3 4 5 6
Revenue ($000s)
Woolworths New Zealand Group (4) PY figures are expressed over 53 weeks. These have not been extrapolated. Shell New Zealand Holding Company (7) Post balance date name change to Greenstone Energy Holdings Limited (6 April 2010). New Zealand Railways Corporation (34) First year of operation. PY figures N/A. Trading as KiwiRail. Housing New Zealand (35) Taxation includes a deferred tax adjustment of $800m arising from the 2010 budget changes. Ballance Agri-Nutrients (49) Post balance date amalgamation with Summit- Quinphos (NZ). Ingram Micro New Zealand Holdings (57) Following a business acquisition comparative figures felt to be misleading and are not shown.
7 8 9 10 11 12
Blue Star Group (58) Previously reported as Blue Star Print Group. Hewlett-Packard New Zealand (63) Post balance date amalgamation with EDS (NZ) Ltd and EDS Defence Services Ltd. EDS (NZ) Ltd was previously a Top200 company. Oregon Group (69) Gained control of Ernslaw One 5 Feb 2010. PY comparatives amended to include Ernslaw One. Briscoe Group (81) Current year figures are for 53 weeks. These have not been extrapolated. NZ Poultry Enterprises (84) PY figures adjusted post-balance date to accommodate changes relating to purchase of NZ Poultry Finance Ltd. Westland Co-operative Dairy Company (88) PY figures annualised from 14 months trading. Name change from Westland Milk Products.
A = annualised figures. * = more than 50% overseas controlled. NZSX = New Zealand Stock Exchange. 78 | management.co.nz | DECEMBER 2010
13 14 15 16 17 18
Opus International (NZ) (92) Previously reported as Opus International Consultants Limited. DSE (NZ) (97) PY figures 53 weeks. These have not been extrapolated. YPG Holdings (110) Trading as Yellow. ABB Grain (NZ) (110) Post balance date amalgamation with NRM Feeds, New Zealand Grain and Seed and PCL Feeds to become Viterra (NZ) Limited. Mediaworks NZ (117) No financial statements available for ultimate parent, GR Media Capital. Open Country Dairy (123) Figures annualised from 14 months. Change in company structure therefore PY comparatives not shown.
EBIT ($000s)
% Return on Revenue
Total Assets ($000s)
Rank
% Change
% Return on Assets
% Return Total Equity on Total Proprietorship Approx Balance ($000s) Rank Equity Ratio (%) Employees Date
16,958
10.4
328,951
99
115.8
1.8
29,311
175
15.6
12.18
90
12/09
77,049
47.9
956,273
47
5.0
4.1
668,468
29
5.8
71.61
155
06/10
1,856
1.2
94,821
183
-2.9
-2.6
24,817
181
-9.5
25.79
N/D
03/09
2,806
1.8
257,844
119
0.7
-3.3
186,529
88
-4.5
72.58
823
06/10
-8,153
-5.2
122,939
170
-15.4
-6.6
104,077
119
-8.0
77.59
N/D
06/09
7,565
4.8
65,953
190
-23.6
3.1
4,330
194
42.2
5.69
103
06/09
39,341
25.3
603,754
67
3.4
3.2
285,168
68
6.8
48.02
N/D
03/10
-8,682
-5.7
44,750
196
-44.2
-16.3
19,247
185
-41.9
30.82
100
03/10
-1,536
-1.0
87,275
186
-30.6
-4.1
30,355
173
-13.4
28.50
75
06/09
-3,778
-2.5
68,609
188
11.4
-5.5
51,065
152
-10.9
78.45
N/D
06/09
2,269
1.5
309,282
104
-0.9
-3.5
24,995
180
-40.8
8.05
N/D
12/09
-3,537
-2.4
225,582
125
15.9
-2.6
192,944
87
-3.2
91.82
N/D
03/10
9,276
6.2
195,723
139
-13.0
1.1
85,933
130
2.6
40.86
287
03/10
16,204
10.9
171,922
148
13.7
5.5
35,362
170
29.2
21.89
40
11/09
9,673
6.5
182,282
142
0.3
3.6
162,330
97
4.1
89.20
N/D
12/09
2,362
1.6
62,513
192
-36.2
1.2
29,381
174
3.4
36.60
300
03/10
8,073
5.6
143,161
159
2.5
-0.7
45,588
159
-1.9
32.24
750
06/10
-849
-0.6
119,249
173
16.5
-8.2
-10,973
197
N/A
-9.90
90
06/09
-28,519
-20.5
1,299,328
39
-7.7
-11.2
767,051
25
-17.4
56.66
N/D
06/10
15,390
11.2
223,663
126
0.1
3.7
173,727
94
4.7
77.69
560
05/10
19 20 21 22 23 24 25
Kathmandu Holdings (130) Previously reported Milford Group Holdings. WGL Retail Holdings (132) Previously reported Whitcoulls Holdings Limited. Amalgamated with Whitcoulls Limited & WGL Retail Holdings Limited on 20/01/09. Linde Holdings New Zealand (139) PY comparatives annualised. Coles Group New Zealand Holdings (149) PY figures annualised from 11 months. The Tatua Co-operative Dairy Company (151) PY figures annualised from 14 months. Ashburton Trading Society (163) Figures annualised from 15 months. New Zealand Investment Holdings (175) Trading as Marley NZ .
Financials
Abbreviations
1 2 3 4 5 6
ARH Auckland Regional Holdings, CCC Christchurch City Council, DCC Dunedin City Council, HBPCT Hawkes Bay Power Consumer Trust, MFL Millstream Finance Limited, MCRI Minister of Crown Research Institutes, MF Minister of Finance, MSOE Minister for State Owned Enterprise, NEPT Northland Electric Power Trust, NZG New Zealand Government, SC Southbury Corporation, TSBCT TSB Community Trust, TWU Te Waka Unua
National Australia Bank group (3) Trading as Bank of New Zealand. South Canterbury Finance (12) In receivership from 31/08/2010. AXA Asia Pacific Holdings (13) Branch of National Mutual Life Association of Australasia. The Bank Of Tokyo-Mitsubishi (17) NZ branch of an overseas company. AMI Members Trust (22) Previously reported as AMI Insurance. Fisher & Paykel Finance (26) A wholly-owned subsidiary of Fisher & Paykel Appliance Holdings, a top 200 company.
Companies with a revenue greater than $75 million are eligible to participate in this survey if audited statutory accounts are available for verification and they meet the ‘Criteria’ outlined on page 61. If you feel your company should have been included in the ‘Top 200’, please phone 0-9-845 5114. All care has been taken to ensure accuracy. The publisher accepts no responsibility for errors and omissions.
DECEMBER 2010
| management.co.nz | 79
Rank
Previous Year
Financial Institutions
1
1
2
2
3
4
4
3
5
5
6
7
7
6
8
10
9
9
10
8
11
11
12
14
13
13
14
(-)
15
(-)
16
15
17
(-)
18
16
19
17
20
(-)
21
(-)
22
(-)
23
(-)
24
18
25
20
26
(-)
27
(-)
28
23
29
22
30
19
Total Assets ($000s)
% Change
% Return on Assets
Revenue ($000s)
NZSX*
117,891,000
-4.1
0.2
8,008,000
1
-27.1
NZSX*
73,444,000
3.6
-0.7
5,232,000
2
-13.0
*
69,666,000
7.9
-0.2
4,471,000
3
-23.9
*
63,557,000
-2.6
0.4
4,368,000
4
-17.4
SOE
12,238,375
18.0
0.4
731,938
6
-8.8
*
6,936,096
15.3
0.1
486,803
8
-2.0
*
4,770,370
-22.9
0.9
305,178
15
-42.5
-
4,405,082
15.0
1.2
277,693
16
-7.4
*
3,500,645
-8.6
0.6
123,393
23
-56.2
*
3,099,000
-22.0
2.4
343,000
13
-34.3
Soc
2,627,905
3.4
0.6
191,849
19
-23.3
-
2,354,890
16.0
-2.3
305,678
14
7.3
*
1,971,000
-8.2
2.6
380,000
10
77.6
*
1,930,154
-1.1
-1.2
1,241,008
5
1.2
*
1,761,563
-17.6
1.5
343,555
12
-20.3
NZSX
1,596,460
5.1
3.2
555,690
7
11.0
*
1,572,808
38.2
0.8
46,762
27
-33.0
NZSX
1,561,287
6.4
1.5
209,532
18
-0.2
Co-op
1,395,542
5.2
1.0
129,464
22
-9.7
*
1,144,388
-8.1
2.0
245,333
17
17.8
*
1,017,912
2.7
1.2
150,335
21
2.6
-
542,653
11.4
6.0
354,800
11
9.8
Soc
540,845
-1.6
0.4
32,768
28
-37.8
-
536,368
-14.0
1.5
93,420
24
-5.1
-
529,391
7.3
3.3
169,540
20
43.4
-
438,618
7.2
2.2
86,632
25
0.2
*
431,695
1.1
1.7
26,674
30
-13.2
*
425,115
3.2
3.4
381,455
9
0.2
Soc
402,996
-2.2
-1.2
27,694
29
-28.3
-
394,293
-22.7
2.7
82,178
26
-8.7
Company Name (Head Office) ANZ National Bank Wellington Westpac New Zealand Auckland National Australia Bank Group1 Auckland ASB Bank Auckland Kiwibank (50% MF, 50% MSOE) Lower Hutt Rabobank New Zealand Lower Hutt The Hongkong & Shanghai Banking Corporation Auckland TSB Bank (100% TSBCT) New Plymouth Citibank NA New Zealand Auckland Deutsche Bank AG New Zealand Auckland Southland Building Society Invercargill South Canterbury Finance (80% SC)2 Timaru AXA Asia Pacific Holdings3 Wellington IAG (NZ) Holdings Auckland GE Finance and Insurance Auckland Tower Auckland The Bank of Tokyo-Mitsubishi4 Auckland Pyne Gould Corporation Christchurch PSIS Wellington Custom Fleet NZ Auckland Toyota Finance New Zealand Auckland AMI Members Trust5 Christchurch Canterbury Building Society Christchurch Motor Trade Finances Dunedin Fidelity Life Assurance Company Auckland Fisher & Paykel Finance6 Auckland Kookmin Bank Auckland Branch Auckland Lumley General Insurance (NZ) Auckland Southern Cross Building Society Auckland Medical Assurance Society NZ Wellington
A = annualised figures. * = more than 50% overseas controlled. NZSX = New Zealand Stock Exchange. Footnotes page 78. 80 | management.co.nz | DECEMBER 2010
% Rank Change
% Change
% Pre-Tax Return on Revenue
Total Equity ($000s)
Rank
298,000
-74.4
9.6
10,088,000
1
3.0
-494,000
-172.4
11.3
3,905,000
2
-115,000
-116.2
12.9
2,517,000
236,000
-44.5
14.7
45,848
-27.9
8,495
Profit After Tax ($000s)
% Return on Total Equity
Proprietorship Ratio (%)
Approx Employees
Balance Date
8.38
9,000
09/09
-12.3
5.41
5,578
08/09
4
-4.3
3.75
4,920
09/09
3,548,000
3
7.0
5.51
N/D
06/10
8.8
588,763
5
9.7
5.21
N/D
06/10
-70.3
2.6
266,456
11
3.2
4.11
N/D
12/09
50,731
27.5
23.8
26,681
28
214.1
0.49
240
12/09
51,178
19.3
26.8
331,125
9
16.1
8.04
266
03/10
21,271
-41.6
24.6
130,276
17
17.8
3.55
N/D
12/09
84,000
44.8
34.1
202,000
14
43.8
5.71
N/D
12/09
15,037
24.7
10.7
177,664
16
9.0
6.87
224
03/10
-49,569
-181.6
-20.8
225,922
13
-21.1
10.31
90
06/09
53,000
-52.3
21.1
260,000
12
14.4
12.62
321
12/09
-22,617
26.7
-2.8
192,334
15
-11.1
9.91
N/D
06/09
28,555
118.8
11.7
327,895
10
9.1
16.82
N/D
12/09
50,085
23.8
10.9
404,448
7
14.3
25.96
N/D
09/09
10,992
78.4
30.2
10,897
29
116.0
0.80
N/D
03/10
22,006
140.5
13.2
466,621
6
6.8
30.81
300
06/10
13,120
66.3
12.8
116,872
19
11.9
8.59
293
03/10
23,929
228.5
15.5
44,851
27
72.8
3.75
N/D
12/09
11,669
38.0
11.1
129,786
18
9.4
12.92
222
03/10
31,048
68.1
13.9
363,953
8
8.9
70.68
765
06/10
1,910
154.9
3.7
51,552
25
3.8
9.45
57
03/10
8,764
135.8
13.2
63,473
24
15.5
10.94
52
09/09
16,916
63.4
11.9
112,661
20
16.1
22.03
150
06/10
9,420
70.6
15.6
82,017
23
14.3
19.35
236
03/10
7,277
58.9
39.8
8,431
30
104.2
1.96
N/D
12/09
14,401
36.3
5.2
96,328
22
15.7
23.02
N/D
06/10
-4,702
46.2
-18.7
47,606
26
-9.4
11.68
N/D
06/10
12,056
468.2
18.0
111,996
21
11.4
24.77
161
03/10
DECEMBER 2010
| management.co.nz | 81
COMPANY PROFILE
WHEN THINGS ARE ON SHAKY GROUND MARSH IS THERE A lesson in the importance of business continuity and risk management. WHEN THE CANTERBURY EARTHQUAKE HIT, MARSH was very quick to react and implement its business continuity plan. As soon as we were notified of the earthquake our plan kicked into gear. Key staff were immediately called and within a couple of hours, the Marsh Business Continuity Planning (BCP) team had met and put plans in action. This included ensuring that all staff were accounted for, assessing what help was needed and putting processes in place so that our clients were assisted rapidly and efficiently. For example, as our Christchurch office had sustained damage and would be un-operable for the short-term, we quickly diverted phone lines and brought in staff on the weekend to answer calls from our Wellington office. Most importantly, we moved swiftly to communicate with staff, providing regular updates each day, and offering counselling. Firstly, it was important for staff to know that their colleagues were okay. Those in client facing roles needed to be clear about how client enquiries were going to be handled and the processes in place to manage insurance claims. We immediately put information on our website to advise clients on how they could make a claim and a supporting advertisement was placed in the Christchurch Press. The ability to restore operations as quickly as possible after a disaster can make the difference between business survival and failure. When you are on shaky ground you need a risk advisor that practises what it preaches and that’s where you can always rely on Marsh.
0800 627 744 . info.marshnz@marsh.com . www.marsh.co.nz
82 | management.co.nz | DECEMBER 2010
Year-on-Year Comparisons These tables compare the results of this year’s top 200 companies, Top 30 financial organisations, and the combined Top 230 results, with the performance of those same companies in their previous reporting year.
These tables compare the results of the companies which make up this year’s Top 200, Top 30 financial organisations, and the combined Top 230 results, with the companies in last year’s lists.
Top 200 Companies
Top 200 Companies
2010 $000s Revenue
2009 $000s % Change
2010 $000s
147,547,198
150,463,075
-1.9
Revenue
Profit After Tax
3,955,446
3,979,544
-0.6
Tax Paid
3,280,836
1,312,705
EBITDA
19,464,966
Assets Equity
147,547,198
151,819,285
-2.8
Profit After Tax
3,955,446
4,512,453
-12.3
149.9
Tax Paid
3,280,836
1,430,461
129.4
18,011,115
8.1
EBITDA
19,464,966
N/A
N/A
210,684,499
209,310,085
0.7
Assets
210,684,499
193,242,911
9.0
101,218,718
98,556,072
2.7
Equity
101,218,718
85,857,908
17.9
Top 30 Finance Companies
Top 30 Finance Companies
2010 $000s
2009 $000s % Change
29,401,372
35,996,613
-18.3
Revenue
439,820
3,276,449
-86.6
Profit After Tax
Tax Paid
2,858,503
1,310,581
118.1
EBITDA
19,897,255
27,948,118
-28.8
Assets
382,683,451
380,619,693
Equity
24,898,608
24,113,911
Revenue Profit After Tax
2010 $000s
2009 $000s % Change
29,401,372
36,822,942
-20.2
439,820
3,302,731
-86.7
Tax Paid
2,858,503
1,313,680
117.6
EBITDA
19,897,255
N/A
N/A
0.5
Assets
382,683,451
382,476,325
0.1
3.3
Equity
24,898,608
24,911,684
-0.1
Top 230 Companies 2010 $000s Revenue
2009 $000s % Change
Top 230 Companies 2009 $000s % Change
176,948,570
186,459,688
-5.1
Profit After Tax
4,395,266
7,255,993
-39.4
Tax Paid
6,139,339
2,623,286
EBITDA
39,362,221
Assets Equity
2010 $000s Revenue
2009 $000s % Change
176,948,570
188,642,227
-6.2
Profit After Tax
4,395,266
7,815,184
-43.8
134.0
Tax Paid
6,139,339
2,744,141
123.7
45,959,233
-14.4
EBITDA
39,362,221
N/A
N/A
593,367,950
589,929,778
0.6
Assets
593,367,950
575,719,236
3.1
126,117,326
122,669,983
2.8
Equity
126,117,326
110,769,592
13.9
DECEMBER 2010
| management.co.nz | 83
Analysis Most Improved Revenue Top 200 Rank 74
Most Improved Profits % Change
Top 200 Rank
Siemens (NZ)
178.6
157
Apple Sales New Zealand
113.9
7
147
Retirement Care (NZ)
68.0
85
187
Unison Networks
44.9
152
108
Downer EDI Engineering Group
39.1
190
JB Hi-Fi NZ
37.7
Norske Skog Tasman
37.1
Abano Healthcare Group
37.0
86
Oceana Gold Holdings (New Zealand)
25.3
69
72 125
144
% Change
Panasonic New Zealand
5376.9
Shell New Zealand Holding Company
5101.2
OfficeMax Holdings
3784.0
Mazda Motors of New Zealand
1368.3
73
Hellaby Holdings
1357.0
86
Oceana Gold Holdings (New Zealand)
1248.6
9
Foodstuffs South Island
1124.7
2
Fletcher Building
842.1
126
Pan Pac Forest Products
690.2
Oregon Group
23.4
160
Ports of Auckland
588.1
151
The Tatua Co-operative Dairy Company
21.7
125
Abano Healthcare Group
579.8
133
New Zealand Sugar Company
18.8
173
DFS New Zealand
554.1
172
Ryman Healthcare
17.6
162
Avon Pacific Holdings
482.2
180
Alesco New Zealand and Subsidiaries
17.5
f 30
Medical Assurance Society NZ
468.2
23
Alliance Group
16.9
193
Honda New Zealand
440.2
12
Fulton Hogan
15.9
69
Oregon Group
402.1
38
DGL Investments
15.0
108
Downer EDI Engineering Group
367.2
140
Nobilo Holdings
15.0
124
NZ Snack Food Holdings
352.2
130
Kathmandu Holdings
14.7
5
Air New Zealand
290.5
159
Lion Nathan Wines and Spirits New Zealand
14.0
49
Ballance Agri-Nutrients
270.9
Biggest Profit Makers Top 200 Rank
Biggest Loss Makers Profit $000s
Top 200 Rank
Loss $000s
1
Fonterra Co-operative Group
685,000
35
Housing New Zealand
-675,000
3
Telecom Corporation of New Zealand
382,000
f 2
Westpac New Zealand
-494,000
7
Shell New Zealand Holding Company
331,632
110
YPG Holdings
-338,325
ANZ National Bank
298,000
103
Geon Group Holdings
-182,852
Fletcher Building
282,000
147
Retirement Care (NZ)
-169,924
f 4
ASB Bank
236,000
199
AMP NZ Office Trust
-152,118
27
Vector
199,118
f 3
National Australia Bank Group
-115,000
34
New Zealand Railways Corporation
194,497
117
Mediaworks NZ
-91,420
15
Meridian Energy
184,049
31
Fisher & Paykel Appliances Holdings
-83,328
11
Contact Energy
154,668
54
Fairfax New Zealand Holdings
-69,407
86
Oceana Gold Holdings (New Zealand)
126,766
4
Woolworths New Zealand Group
-53,374
20
Vodafone New Zealand
121,600
48
Telstra New Zealand Holdings
-52,139
44
TrustPower
119,413
f 12
South Canterbury Finance
-49,569
37
Tasman Steel Holdings
112,672
80
Flavoured Beverages Group Holdings
-43,989
72
Norske Skog Tasman
105,699
143
Bridgestone New Zealand
-39,142
45
Sky Network Television
103,021
101
Toll Group (NZ)
-36,135
39
SKYCITY Entertainment Group
101,868
70
Methanex New Zealand
-28,951
16
Watercare Services
-27,709
Television New Zealand
-26,026
IAG (NZ) Holdings
-22,617
f 1 2
Infratil
95,000
155
137
Juken New Zealand
86,689
98
22
Mighty River Power
84,614
f 14
F = Financial organisations ranked by total assets. Page 80. 84 | management.co.nz | DECEMBER 2010
Top Returns on Total Equity Top 200 Rank
Top Returns on Total Assets % Return on Equity
Top 200 Rank
77
Nestle New Zealand
295.3
f 7
The Hongkong & Shanghai Banking Corporation
214.1
7
86
Oceana Gold Holdings (New Zealand)
184.8
173
The Bank of Tokyo-Mitsubishi
116.0
f 17 57
125
% Return on Assets
Abano Healthcare Group
40.2
Shell New Zealand Holding Company
30.9
DFS New Zealand
27.3
77
Nestle New Zealand
25.5
Oceana Gold Holdings (New Zealand)
24.4
Hallenstein Glasson Holdings
24.2
Ingram Micro New Zealand Holdings
107.0
86
f 27
Kookmin Bank Auckland Branch
104.2
148
125
Abano Healthcare Group
89.8
94
Beca Group
21.9
180
Alesco New Zealand and Subsidiaries
85.2
180
Alesco New Zealand and Subsidiaries
21.4
157
Apple Sales New Zealand
78.3
105
Restaurant Brands NZ
19.2
f 20
Custom Fleet NZ
72.8
120
Imperial Tobacco New Zealand
18.7
137
Juken New Zealand
62.2
65
Fisher & Paykel Healthcare Corporation
16.1
72
Norske Skog Tasman
46.5
72
Norske Skog Tasman
15.4
111
British American Tobacco Holdings (NZ)
45.7
97
DSE (NZ)
14.8
105
Restaurant Brands NZ
45.6
111
British American Tobacco Holdings (NZ)
14.6
Shell New Zealand Holding Company
45.0
89
Pumpkin Patch
13.9
f 10
7
Deutsche Bank AG New Zealand
43.8
137
Juken New Zealand
13.7
186
Paperlinx (NZ)
42.2
166
MARS New Zealand
13.5
Beca Group
40.5
133
New Zealand Sugar Company
13.1
BP New Zealand Holdings
38.0
167
McDonald’s Restaurants (New Zealand)
12.7
Imperial Tobacco New Zealand
37.9
81
Briscoe Group
12.0
94 8 120
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DECEMBER 2010
| management.co.nz | 85
Performance by Sector Automotive
CommunicationS | Media Profit $000s
Top 200 Profit Rank
Top 200 Revenue Rank
Nissan New Zealand
5,894
114
176
Telecom Corporation of New Zealand
382,000
2
3
Ford Motor Company of New Zealand
5,475
118
106
Vodafone New Zealand
121,600
10
20
Sky Network Television
103,021
14
45
Toyota New Zealand
4,543
122
47
Mercedes-Benz New Zealand
4,233
124
181
Mazda Motors of New Zealand
3,524
129
152
Honda New Zealand
2,242
131
193
CablePrice (NZ)
989
138
196
Holden New Zealand
684
141
114
Banking | FinancE Top 30 Top 30 Profit Asset Profit $000s Rank Rank
Profit $000s
Top 200 Top 200 Profit Revenue Rank Rank
Community SERVICES Profit $000s
Top 200 Profit Rank
Top 200 Revenue Rank
Abano Healthcare Group
78,948
23
125
Ryman Healthcare
78,417
24
172
Bupa Healthcare New Zealand
26,034
53
174
Ebos Group
23,437
61
25
Transpacific Ind. Group Finance (NZ)
14,393
80
107
Profit $000s
Top 200 Profit Rank
Top 200 Revenue Rank
ANZ National Bank
298,000
1
1
ASB Bank
236,000
2
4
Deutsche Bank AG New Zealand
84,000
3
10
TSB Bank
51,178
5
8
The Hongkong & Shanghai Banking Corp
50,731
6
7
Christchurch City Holdings
54,990
34
55
Kiwibank
45,848
8
5
Alesco New Zealand and Subsidiaries
29,987
50
180
GE Finance and Insurance
28,555
10
15
PGG Wrightson
23,304
62
30
Custom Fleet NZ
23,929
11
20
Dunedin City Holdings
18,110
76
134
Pyne Gould Corporation
22,006
12
18
Hellaby Holdings
10,301
95
73
Citibank NA New Zealand
21,271
13
9
Southland Building Society
15,037
15
11
PSIS
13,120
17
19
Toyota Finance New Zealand
11,669
19
21
Profit $000s
Top 200 Profit Rank
Top 200 Revenue Rank
The Bank of Tokyo-Mitsubishi
10,992
20
17
Coca-Cola Amatil (NZ)
57,333
33
68
H J Heinz Company (New Zealand)
53,794
36
43
New Zealand Breweries
44,774
38
83
Frucor Beverages
35,764
44
87
Nestle New Zealand
34,578
45
77
Chemical | Pharmaceuticals
Orica Investments (NZ) GlaxoSmithKline NZ CDC Pharmaceuticals
Diversified CorporateS
Food (PROCESSED) | BeverageS
Profit $000s
Top 200 Profit Rank
Top 200 Revenue Rank
72,461
25
64
McDonald’s Restaurants (New Zealand)
34,050
46
167
6,515
111
195
NZ Poultry Enterprises
22,609
65
84
719
139
171
Restaurant Brands NZ
19,536
72
105
New Zealand Sugar Company
15,700
79
133
Allied Foods (NZ)
13,221
83
119
NZ Snack Food Holdings
13,119
84
124
Nobilo Holdings
12,893
85
140
DB Breweries
Construction | INFRASTRUCTURE Profit $000s
Top 200 Profit Rank
Top 200 Revenue Rank
282,000
4
2
12,595
86
79
Fulton Hogan
79,535
21
12
Cerebos Gregg’s
9,252
98
178
DGL Investments
67,708
29
38
Cadbury
8,003
103
122
Beca Group
33,170
94
47
MARS New Zealand
7,934
104
166
Opus International (NZ)
18,613
92
75
Transfield Services (New Zealand)
12,341
88
52
ANZCO Foods Lion Nathan Wines and Spirits NZ
7,301 6,265
107 113
28 159
Fletcher Building
86 | management.co.nz | DECEMBER 2010
Companies listed under the various industry sectors are ranked on their profit after tax, except for insurance which is ranked on revenue. Ranking in the Top 200 or Top 30 is also provided.
Primary ProducTION
Insurance Revenue $000s
Top 30 Revenue Rank
Top 30 Asset Rank
Profit $000s
Top 200 Profit Rank
Top 200 Revenue Rank
1,241,008
5
14
Fonterra Co-operative Group
685,000
1
1
Tower
555,690
7
16
Norske Skog Tasman
105,699
13
72
Lumley General Insurance (NZ)
381,455
9
28
Juken New Zealand
86,689
17
137
AXA Asia Pacific Holdings
380,000
10
13
Oregon Group
79,469
22
69
AMI Members Trust
354,800
11
22
Silver Fern Farms
43,597
39
14
Fidelity Life Assurance Company
169,540
20
25
Sanford
39,139
40
75
ZESPRI Group
25,890
54
21
AFFCO Holdings
25,365
56
33
Kura
22,752
64
53
Pan Pac Forest Products
19,588
70
126
51
Alliance Group
19,008
73
23
Scales Corporation
13,622
82
145
Profit $000s
Top 200 Profit Rank
Top 200 Revenue Rank
The Warehouse Group
60,540
32
19
British American Tobacco Holdings (NZ)
54,231
35
111
Michael Hill International
26,509
52
76
Pumpkin Patch
25,502
55
89
Harvey Norman Stores (NZ)
25,037
57
41
Briscoe Group
21,026
66
81
OfficeMax Holdings
20,430
67
85
Hallenstein Glasson Holdings
19,581
71
148
DSE (NZ)
13,906
81
97
Imperial Tobacco New Zealand
12,548
87
120
DFS New Zealand
12,134
89
173
Foodstuffs South Island
12,100
90
9
Foodstuffs (Auckland)
11,487
93
6
Turners & Growers
9,529
96
56
Kathmandu Holdings
9,387
97
130
Bidvest New Zealand
8,330
101
71
Profit $000s
Top 200 Profit Rank
Top 200 Revenue Rank
IAG (NZ) Holdings
IT | Computer Hardware Profit $000s Datacom Group
30,246
Top 200 Profit Rank
Top 200 Revenue Rank
49
IBM New Zealand
20,152
68
90
Alcatel-Lucent New Zealand
12,063
91
102
Ingram Micro New Zealand Holdings
4,187
126
57
Apple Sales New Zealand
4,168
127
157
Manufacturing Profit $000s
Top 200 Profit Rank
Top 200 Revenue Rank
112,672
12
37
Fisher & Paykel Healthcare Corporation
71,631
26
65
Nuplex Industries
66,982
30
24
Pact Group (NZ)
23,860
59
121
Sealed Air (New Zealand)
16,861
77
153
Avon Pacific Holdings
16,296
78
162
Skellerup Holdings
11,958
92
168
Cavalier Corporation
11,369
94
141
Tasman Steel Holdings
Oil | Gas | Mineral | Electricity | WATER
Retail | Wholesale
Profit $000s
Top 200 Profit Rank
Top 200 Revenue Rank
Shell New Zealand Holding Company
331,632
3
7
Vector
199,118
5
27
Meridian Energy
184,049
7
15
Contact Energy
154,668
8
11
Oceana Gold Holdings (New Zealand)
126,766
9
86
New Zealand Railways Corporation
194,497
6
34
TrustPower
119,413
11
44
Air New Zealand
82,000
19
5
Mighty River Power
84,614
18
22
Port of Tauranga
38,016
41
182
BP New Zealand Holdings
79,546
20
8
Ports of Auckland
37,192
42
160
36,365
43
32
TransportATION
Genesis Power
69,314
27
17
Mainfreight
Solid Energy NZ
67,837
28
50
Auckland International Airport
29,694
51
96
Transpower New Zealand
64,985
31
46
Freightways
23,164
63
104
DECEMBER 2010
| management.co.nz | 87
Missing, Merged, Miscellaneous Just Missed The Top 200 List Rank Previous This Year Year Company 201 (-) Pfizer New Zealand
Revenue % Profit After ($000s) Change Tax ($000s) 137,307 7.2 7,952
% Rank Change 112 -23.5
AsureQuality
136,747
202
(-)
-1.4
4,886
136
203
200
Compass Group New Zealand
204
191
Armourguard Security
134,858
2.4
4,764
134,177
-7.5
-123
205
(-)
206
(-)
Goodman Property Trust
132,900
2.2
Johnson & Johnson (New Zealand)
131,358
7.2
207
187
Schneider Electric (NZ)
130,520
-13.2
208
194
Methven
129,842
209
188
New Zealand Radio Network
128,478
210
(-)
Dow AgroSciences (NZ)
127,968
3.4
EBIT % Return Balance ($000s) on Revenue Date 9,527 6.9 11/09
11.5
7,731
6.1
09/09
138
-18.0
7,118
5.3
09/09
180
-111.0
-235
4.6
09/09
-7,000
210
90.6
12,500
24.4
03/10
8,813
106
68.3
13,133
10.0
12/09
5,152
134
-44.3
6,636
5.4
12/09
-5.5
7,820
117
-22.2
11,027
9.2
03/10
-14.6
10,228
99
-20.7
11,037
9.2
12/09
5,674
130
-59.8
8,208
6.5
12/09
Just Missed The Financial Institutions List Rank Previous This Year Year Finance Company 31 24 QBE Insurance (Int’l) NZ Branch
Revenue % Profit After % % Return Balance ($000s) Change Tax ($000s) Change EBIT ($000s) on Revenue Date 384,390 3.9 18,477 48.5 25,813 13.1 12/09
32
21
SG Portfolio Management Group
376,802
-16.9
2,982
-76.2
4,765
27.3
12/09
33
(-)
Mercedes-Benz Financial Services NZ
338,788
-4.6
3,849
135.0
3,766
53.2
12/09
34
25
Orix New Zealand
317,451
-3.7
8,634
140.6
13,321
25.3
03/10
35
(-)
NZF Group
296,613
1.8
-4,561
-33.6
-3,539
47.0
03/10
WhatEver Happened To‌ Company Aquiline Holdings
Prev Year Rank 197 In receivership from 10/08/10.
BBI Networks NZ EDS (New Zealand)
114 85
Last Recorded Revenue ($000s) 132,575
Last Balance Date 06/08
Changed name to Prime Infrastructure Networks (NZ) and sold Powerco (99).
268,806
06/09
Amalgamated with EDS Defence Services and Hewlett-Packard New Zealand. No financial statements for FY09 were available.
396,687
12/08
Ernslaw One
102 Now a subsidiary of Oregon Group (69).
311,651
06/09
Metro Water
179 Ceased operations as from 1/11/10.
158,498
06/09
Onesource Holdings NZ
131
226,729
06/08
Redeal Limited
113 No updated financial statements available.
270,890
12/08
Richina Land (NZ)
111 No updated financial statements available.
277,321
12/08
South Pacific Tyres
147
200,691
12/08
Suncorp Group Holdings (NZ)
F 12 No updated financial statements available.
(Assets) 2,224,564
06/09
494,000
06/09
Tenon
88 | management.co.nz | DECEMBER 2010
Changed name to Copier Holdings NZ post balance date. No updated financial statements available.
Amalgamated, now Goodyear & Dunlop Tyres (NZ). No financial statements available.
67 Changed presentation currency to US dollars.
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Paul Brock
The customer’s banker Kiwibank’s new chief executive likes to listen in when customers call his bank. He sees it as part of his job. He talks with Ruth Le Pla about his marketing roots and the bank’s next incarnation as a challenger brand.
F
or someone with a background in marketing, Paul Brock has shifted very quietly into the chief executive’s chair at Kiwibank. Maybe he’s just too busy to make a big fuss about it. After all, he’s got some 700,000 customers and 1000 staff to care for. Brock’s new role is a natural progression for someone who, together with the bank’s first ever chief executive Sam Knowles, helped draw up the original blueprint for the bank over a decade ago. Brock took over from Knowles in September this year. In doing so, he headed off a deluge of local and international candidates for the job and consolidated his climb through the bank’s ranks via a series of key positions including general manager marketing and, most recently, general manager savings and transactions. He has been championing a listening line of business right from the get-go. “People don’t get up in the morning and say, ‘I really want to do my banking today’,” he reasons. “It’s not something they spend a lot of time thinking about. So banks have to think about customers first and then think about how we can make banking far more straightforward for them.”
90 | management.co.nz | DECEMBER 2010
He cites as an example, Kiwibank’s new Notice Saver account which acts as though a savings account has mated with a term deposit facility giving customers better returns than their usual savings account without penalising them for accessing their dollars. Launched at the end of October this year, Notice Saver is being marketed as a New Zealand first. Brock says it smacks of changes to come under his leadership as he ramps up the bank to a new growth level. He won’t be drawn on the specifics at this point. But he does suggest there are plenty of opportunities for building on the bank’s work in the personal banking space and spreading out further into the small business banking market. For Brock, direction stems from identifying and untangling customer frustrations. “We don’t do things just because we think they’re a good idea. We do them because we’re trying to make things better for customers and we listen to what people have told us about what’s frustrating them with their banking.” His customer-driven approach means he still sometimes listens in on Kiwibank’s phones so he can get to grips with issues from a customer’s point of view. He believes the essence of a good chief executive
is someone who is prepared to listen and that one of the most important aspects of leadership is to create the right environment for success. “In many cases that’s about having a clear vision of what you’re trying to achieve and, ultimately, it comes down to understanding people and being prepared to work with them.” Brock first segued into the banking sector as a 20-something year old, unleashed from Massey University with a business degree heavily weighted towards marketing. “My grandfather had cut an ad out of the paper and said to me, ‘you should really go and do this’.” It was Trust Bank, looking for someone to help with its central region marketing. Even back then, Brock saw himself as someone who liked to challenge the status quo and sniff out fresh opportunities. He says it was “an interesting dimension” to enter an industry that worked along what were very well-trammelled lines. “I wanted to find new ways of doing things that would ultimately be better for customers and therefore drive growth for the bank,” he says. “That was my starting point, my entry, into banking.” Years later, his itch to challenge remains as strong as ever. When Kiwibank fired off a brief announcement about his
appointment as chief executive earlier this year, Brock’s few comments centred around his excitement at the prospect of helping Kiwibank continue to be a challenger brand. Eight years since its inception, Kiwibank is no longer a new player on the New Zealand banking block but Brock sees plenty of room for it to play a role as a more mature brand challenger. This often involves reinvention, he says, and looking again at markets through a new lens. “An example of that is where customers are actively using the internet now. So we’ve had to find ways to reinvent the bank’s offering in the virtual space. It’s just a different flavour but you can’t afford to be stagnant. You’ve got to make sure you’ve got that lens on your business and on your customers, and you must realise the lens is constantly changing and developing. “As we look forward I think about how I would simplify the things that we need to do. More importantly, how would I encourage my leaders to get out there and continue to make a difference?” To Brock’s mind, leaders permeate Kiwibank: they’re from every rung of the organisation right up to members of his executive leadership team. “I want to see the people who have perhaps started in the contact centres becoming leaders in other parts of the business,” he says. “I want to encourage the next wave of leaders to stand up for what they believe in.” He sees leadership as a melting pot of learnings from all aspects of life. He draws, for example, on his insights as a father to four boys aged from 5 to 11, and their experiences learning and growing together. “One of the amazing learnings from being a father is that everyone has different drivers, motivations and skills. So I have this other set of experiences around how to help another group of people try to achieve different things. “Part of being a listener and having a different perspective on the world is about being a sponge and learning to grow from the environment around
you. That’s not always from your work environment. People are 360 degrees an individual. You only see a proportion of that at work. The rest is occurring in their private and social lives and, in many cases, these are the experiences that create great leaders.” Kiwibank continues to maintain its positioning as a bank with ‘Kiwi values at heart’. Its website still carries the story of how it ‘keeps Kiwi money where it belongs – right here, in New Zealand’. Given the Australian ownership of most of its competitors, it’s easy to read such lines as anti-Australian. In recent times, some commentators have suggested that Kiwibank would be best not to push the anti-Aussie sentiment too far in its marketing. The global financial crisis has shown Aussie banks have been good for banking – and by
I want to encourage the next wave of leaders to stand up for what they believe in. extension, business – in New Zealand. So where does Brock draw the line between promoting his bank as ‘Kiwi’ without being anti-Australian? “I don’t think it’s about being anti-Australian,” he says. “We have a large number of large banks in this market that have perhaps done things that haven’t always benefited customers.” So it’s more of a pro-customer yardstick than an anti-Australian one? “If people are happy with their bank that’s fine but we’re saying there’s a better way. Our idea is of challenging the status quo and how it does things. The fact is that much, or pretty much all, of the status quo is owned by offshore banks: that just happens to be a coincidence. “Our main premise is: are those banks standing by New Zealand during a global financial crisis? That’s the question New Zealand asks itself in the form of small businesses, savers and borrowers. Those
are the questions that, ultimately, banks should be judged on. Do they stand by their customers or not?” Sam Knowles, says Brock, achieved a lot in a short space of time. “He came here with a very diverse banking knowledge and his legacy is probably that we have many of the prerequisites for us becoming a full service bank.” For his part, Brock says that when he eventually leaves he’d like his legacy to be positive answers to two big questions. “Have I made a difference to banking for New Zealanders? And have my staff developed and grown and been able to be the best they could be in the environment in which we operate? “Those are the two main things I’d hope to have achieved in my tenure here.” M Ruth Le Pla, a former editor of NZ Management, is a freelance business journalist. ruth.lepla@xtra.co.nz
DECEMBER 2010
| management.co.nz | 91
exec health
Sun
K
smarter
New research suggests a little bit of UV is good for us – but it’s no cause to be sloppy in our approach to the sun, says Peter Tynan.
iwis are extremely proud of the way we punch above our weight on the world stage. But when it comes to skin cancer, our world-leading position is cause for concern, not celebration. As a country, our incidence of melanoma – the deadliest form of skin cancer – is around four times higher than Canada, the US and the UK. In New Zealand, new skin cancers total around 67,000 each year, compared to a total of 16,000 for all other forms of cancers. In fact, if you’re a New Zealander there’s a one in 17 chance you’ll develop a melanoma in your lifetime, while research suggests two-thirds of us will develop a non-melanoma skin cancer. But New Zealand’s high incidence of skin cancer isn’t wholly down to a sun-seeking attitude. According to the National Institute of Water & Atmospheric Research (NIWA), differences in ozone and pollution levels, and sun-earth separation mean the peak ultraviolet (UV) intensity in New Zealand during summer is approximately 40 percent higher than corresponding latitudes in the Northern Hemisphere. But while skin cancer is by far the most common cancer affecting New Zealanders, it is also one of the most preventable. Over 90 percent of skin cancers are
due to excess radiation exposure. However, a steady stream of recent media articles has raised the question of whether our strong ‘sun smart’ message means some New Zealanders are now not receiving enough sunlight to synthesise the vitamin D in our skin. A 2005 University of Otago study of nearly 3000 New Zealanders found that 48 percent had insufficient levels of vitamin D for optimal health. Vitamin D is needed for the healthy development of bones, muscles and teeth and may also offer some protective effects against osteoporosis, multiple sclerosis, Type 1 diabetes and certain types of cancer, such as colon cancer. In general, those with dark skin require a greater amount of sunlight for its production than those with fair skin. The conundrum is that the optimal levels of UV for the synthesis of vitamin D are also those that cause sunburn – three or higher on the UV index (the UV index is an international measure of UV intensity that ranges from one to 11+). So how do we marry our need for vitamin D with the need to be sun smart? As with much health advice, it comes down to a matter of balance and individual need. Research by NIWA scientist Richard McKenzie suggests that, for those with
fair skins, as little as five minutes in sunlight might be needed for the synthesis of vitamin D. During summer, his research suggests the sun should be avoided between 11am and 4pm, with any exposure to sunlight taken outside these hours when the UV index is between one and three. The Cancer Society says a balance between adequate vitamin D levels and increased risk of skin cancer is needed, and that “sensible sun protection is unlikely to put people at risk of vitamin D deficiency”. Between September and April, it says most people should be able to achieve adequate vitamin D levels through usual UV exposure outside peak times, and recommends those at higher risk of vitamin D deficiency, such as the elderly, housebound or people with dark skins, talk to their doctor about their individual vitamin D requirements. The Cancer Society’s message on sun exposure remains as strong as ever – anyone who is exposed to UV light is at risk of skin cancer. The society recommends that sun protection is used between the months of September to April, or when the UV index is at three or higher. M Peter Tynan is chief executive of Southern Cross Health Society.
The best way to keep staff happy since wages. The activa card is a simple, fun way to attract, retain, and inspire your staff. You set the annual amount, then your staff use their activa card to enhance their health and wellbeing. It’s what you’d call a healthy incentive. To find out more about the benefits of activa for your staff talk to Southern Cross on 0800 323 555 now or visit www.healthybusiness.co.nz. activa is brought to you by Activa Health Limited. The activa Account and related banking services are provided by ASB Bank Limited. Activa Health Limited receives services fees from ASB Bank Limited and Southern Cross Medical Care Society. Neither Activa Health Limited nor the Southern Cross Medical Care Society is a registered bank. A copy of ASB’s disclosure statement is available free of charge at www.asb.co.nz.
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Kea Auckland launch: Kea Auckland’s launch party at Shed 5, Wellesley St, November 11. The launch of Kea Auckland attracted a capacity crowd of 500 at Shed 5 on Wellesley St. Developer of the Rhubarb Lane project on the venue site, Doug Rikard-Bell, played host in his premises. Guests had the opportunity to look through the display suite showing the multiple use buildings that are to be developed in the area that is now called Victoria Quarter. 1 David Slack, Kea Auckland launch MC, interviews guest speaker Brent Hansen, former CEO of MTV Europe. 2 Doug Rikard-Bell, developer, Rhubarb Lane. 3 Guests enjoying the hospitality in Shed 5. 4 Harvindar Singh (The Curve Enterprises). 5 David MacGregor, creative director, Brand World. 6 KEA chairman Sir Stephen Tindall. 7 Toni Myers (Mediaweb) and Sarah Trotman (Bizzone). 8 Sue Sinclair, World Class New Zealand Network Manager, Kea New Zealand. EEO Trust Work & Life Awards 2010: 9 EEO Trust’s Philippa Reed and Michael Barnett, CEO of Auckland Regional Chamber of Commerce. 10 Ellie Hayward (Millennium Hotels and Resorts), Anne Marinelli-Poole (CountiesManukau MDHB) and Tina Rose (Manukau Institute of Technology). 11 Shayne Mathieson (Top Drawer Consultants), Bill Tiffin and wife Alison Quesnel (Blackmores), and Anna McNaughton (Mental Health Foundation). 12 Betiina Urbanski (OMEGA), Mary Dawson (Auckland Regional Migrant Centre), Justin Treagus (OMEGA) and wife Celeste Treagus.
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M BOOKCASE
Leading TaxiCharge for Millennials billing benefits: The Truth about Leadership
By James M. Kouzes & Barry Z. Posner Publisher: Jossey Bass • $24.95
Partner taxi companies nationwide Online account management Customised reporting
www.taxicharge.co.nz Telephone: 09 306 1790 email: enquiries@taxicharge.co.nz
94 | management.co.nz | DECEMBER 2010
The context of leadership changes; the content hardly changes at all. James Kouzes and Barry Posner have been interviewing leaders around the world for 30-something years. The result of their endeavours is a database of a million responses, from which they have drawn this conclusion. According to these gurus of the leadership process, fundamental behaviours, actions and practices have remained essentially the same since they first began researching and writing about leadership. The world, on the other hand, is a very different place in so many different ways. They set out to write a new book for “emerging leaders in the Millennial generation”. Millennials are an influential group on the cusp of replacing baby boomers. What they found, however, was that this group wanted to know what every other generation wanted to know. So, age makes no difference when it comes to explaining why leaders are, or are not, effective. Leaders can generate positive work attitudes, be they generation Xers, boomers, traditionalists or millennials. “Good leadership is good leadership regardless of age”. The Truth about Leadership is a collection of fundamental principles that inform and support leadership practices. Its value does not lie in anything particularly new, but rather that what they have articulated are essential leadership “truths”, a word for something that doesn’t change much over time. The lessons they uncovered were, they claim, “true 30 years ago, are true today, and we believe will be true 30 years from now”. The authors explore 10 fundamental truths. They are leadership realities to help managers think, decide and act more effectively. At just short of 200 pages, this is a compact, insightful summary that is accessible, sensible and reassuring. It is a book that either emerging or seasoned leaders can read and real benefits from. It is also relevant to those coaching and mentoring. – Reg Birchfield
company profile
Making a real clean deal Wellington region builds on local synergies to create new clean technology centre A new Clean Technology Centre at Otaki is part of a concerted Wellington regional push to help innovative people turn good ideas into a market reality. The CleanTech Centre in Otaki’s Miro Street stems from a number of coincidences and synergies. Kapiti Coast District Council (which Otaki falls within) has a history of encouraging conservation, biodiversity, sustainability and community involvement in environmental issues. The principals behind new company SpectioNZ were keen to test their concepts of generating electricity and biochar from human waste, and were looking to base themselves in the area because of the support and innovative approach of Kapiti Coast District Council. Separately, Grow Wellington, the regional economic development agency, had been in discussions about the establishment of Centres of Excellence where world-class institutions, companies and people working in specialised areas could come together and build on their combined talents. Four potential areas were identified: screen and digital technologies; sustainable and renewable energy; biotechnology and life sciences; and natural hazard preparedness. In November 2009 Kapiti council staff began discussions with Grow Wellington to facilitate the location of the CleanTech Centre on the Kapiti Coast under the Centre of Excellence for Sustainable Energy. Otaki quickly became the natural location as it showed strong interest in the opportunities that such a development might bring. The town has a goal of becoming a net supplier of energy to the national grid, with households and businesses ready to be used to pilot new technologies. Coupled with this came direct support from leading property developer Stuart Pritchard. “Clearly there has been a happy coming
At the official opening of the CleanTech Centre at Otaki: From left to right: Otaki MP and Minister of Internal Affairs Nathan Guy; SpectioNZ Chief Executive Mike Henare; Kapiti Mayor Jenny Rowan; Research, Science and Technology Minister Dr Wayne Mapp; Grow Wellington Chief Executive Nigel Kirkpatrick; and business leader Sir Stephen Tindall.
together of minds with the result that we now have a purpose built business park at Otaki,” says Kapiti Mayor Jenny Rowan. “The park is equal distance from a number of learning institutions and CRIs which will allow complementary research and science activity.” These same institutions and CRIs are being encouraged to take up residence in the centre. High levels of innovation and collaboration are expected in this environment with real opportunities to commercialise research and good ideas. Companies or individuals who want to take their innovative ideas through to market realities in the area of sustainable and renewable energy, but need support and development to commercialise, will need to apply to Creative HQ, the action arm of Grow Wellington. “The entry bar has been deliberately set high to ensure we are dealing with innovations that stand a good chance of flying on the open market, while adding real value to our community, our region and in turn, New
Zealand. We are looking specifically in the clean tech area,’ says Mayor Rowan. Kapiti Council itself is offering support. It has established three new innovation funds in the areas of water, waste and energy. The waste fund is split into two with some money set aside for new technologies and processes, and the other for businesses using proven existing technologies and processes. Otaki community has got firmly behind the clean technology park. The community has set a vision for the Riverbank Road Industrial Area (where the park is situated) to become a clean technology business park. This, with the goal of going ‘off-grid’, provides the community context for a new approach to business development. Research, Science and Technology Minister Wayne Mapp officially opened the centre last month. Kapiti Mayor Jenny Rowan, Wellington Mayor Celia Wade-Brown and business leaders Sir Stephen Tindall and Ray Avery were among those present.
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M Execs on the move
Hill moves to consulting firm Currently CEO of the Commerce Commission, Nick Hill is joining Martin Jenkins, a consulting firm which works on organisational performance, public policy and economic analysis, and evaluation and research. Hill took over as the first CEO of the Commerce Commission in June 2008, and was previously chief executive at Sport and Recreation New Zealand (SPARC). He leaves the commission after developing and implementing a programme of change to the organisation. Hill will join in February as a director based in the firm’s new Auckland office. Martin Jenkins director Doug Martin said Hill, who has a double
Brent Alderton
The Commerce Commission has announced the appointment of Alderton as its new CEO from 1 January 2011. He replaces Nicholas Hill who is leaving the Commission at the end of this year. Currently the Commission’s general manager, regulation, Alderton joined the Commission in early 2009. Prior to that, he was commercial manager for New Zealand Oil and Gas.
Max Pedersen
The Plumbers, Gasfitters and Drainlayers Board (PGDB) has appointed Pedersen as its next chief executive. He was previously the chief executive of Upper Hutt City Council, a role he held for the 17 years.
officer at the Hawke’s Bay District Health Board (HBDHB) for the past three years, Jacobson has also been IT service manager with Air New Zealand and held other commercial management roles.
Kirk Senior Cinema management software company Vista Entertainment Solutions has appointed Kirk Senior, former CEO of Village Cinemas, to its board of directors as executive chairman. degree in politics and law, brought a wide-ranging skill set to the firm. “Nick will help us to further strengthen our offerings in both the public and private sectors. He’s incredibly well networked and has very strong strategic leadership skills.”
Helen O’Sullivan
Real Estate Institute of NZ (REINZ) has a new chief executive. O’Sullivan, operations manager at Crocker’s Property Group for the past three years, replaces interim CEO Wendy Alexander who returns to her role as CEO of Barfoot & Thompson.
Jo-Ann Jacobson
Gen-i , a division of Telecom New Zealand, has appointed Jacobson to the newly established role of health business development manager. Chief information
Sargon Elias
Velocity Trade has appointed Elias as general manager for its new New Zealand operations. Formerly general manager of CMC Markets, Elias’ new role will focus on Velocity Trade’s expansion into the Asia Pacific region.
Simon Bennett, Stewart Robertson
The Madison Group has announced two new appointments: Bennett, who was most recently consulting at Fletchers, joins as commercial director and Robertson, previously with Tradeforce and Kelly Services, has been appointed divisional manager of Force Labour Solutions.
Frank Spencer Following the merger and the launch of the HBS Bank brand, Spencer, the managing director of Crighton Stone and former chairman of Hastings Building Society, has been officially appointed to the board of SBS Bank.
More Projects, Greater Complexity, Bigger Budgets, Higher Risk? We specialise in portfolio, programme and project management across most sectors. Get in touch to discuss your business critical initiatives and how we can guide them towards success.
www.projectplusgroup.co.nz 96 | management.co.nz | DECEMBER 2010
executive development M Sponsored by The University of Auckland Business School Short Courses www.shortcourses.ac.nz 0800 800 875
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13-18 Company Directors’ Course. Wellington. Institute of Directors. www.iod.org.nz
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DECEMBER 2010
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ecognising excellence
NZ management promotional feature
It’s the time of year to think about rewarding staff and planning team building and incentives for 2011. We’ve found great examples of the best in learning/team building experiences, luxury get-away venues, fine-dining and champagne – everything you need to uplift or wind down. BMW experience
An entertaining day behind the wheel of an award-winning BMW will improve a driver’s skills, build confidence, and offers the opportunity to strengthen relationships through a shared experience participants will never forget. BMW believes when it comes to driver training standards, there is no room for compromise, certainly not when it comes to your own skills and safety. BMW Driver Training covers everything from the essential driving skills to advanced competency levels – whether it’s avoiding an obstacle on a wet road, gaining valuable off-road experience away from the highway, or perfecting the 98 | management.co.nz | DECEMBER 2010
ideal line on a racing circuit. After each training session, every driver will have the vehicle – and themselves – under better control than ever before. BMW Driver Training’s group experiences are ideal for groups or individuals who want to give a unique gift or experience for their clients, employees, or loved ones. BMW Driver Training can also accommodate corporate and incentive groups for dedicated events. The programme can be used as an employee appreciation or customer relationship-
building experience. The cost for either the Level I or Level II course is $600 plus gst. This includes a buffet luncheon and morning and afternoon refreshments. The group session for up to 20 people is based on an Advanced I Driver Training course and costs $12,000 plus gst a day. Gift vouchers are available for all courses. To book call 0508 BMW DRIVE (0508 269 374) or email drivertraining@bmw.co.nz. • See page 99 for your chance to win a driver training course.
Appreciating quality
Win
a full-day driving course You could win a day honing your driving skills at a BMW Driver Training Course worth $600 plus GST. Just go to www.management.co.nz before January 1, 2011. Winners will be advised by email.
Movie magic The easy-to-use Flip Video™ shoot and share pocket video cameras make movie-making simple. Just plug them directly into your computer to download the footage and save your summer memories. Now Cisco has announced an all-new range of the cameras just in time for summer. The new UltraHD and MinoHD video cameras feature the signature Flip simplicity and are now equipped with integrated image stabilisation and a higher frame rate that make videos look even better. The pre-loaded FlipShare software now also features direct uploading to Twitter, Facebook and YouTube. FlipShare allows users to take digital still images from video and comes with a Magic Movie button, helping consumers to make fun movies of multiple video clips.
“Flip Video has been making it easy for New Zealand consumers to shoot and share video for a year now, and the new models mean even higher quality HD video is now available,� said Todd Lynton, managing director of Cisco Consumer Products ANZ. “Kiwis love being able to share their videos quickly and easily, and with Christmas and summer on the way it’s a perfect time to extend our range.�
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DECEMBER 2010
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Recognising excellence
Fantail Lodge Country Estate A balance of facilities, service, and fine cuisine - a winning formula Fantail Lodge near Katikati in the Bay of Plenty, one of the country’s finest and dedicated boutique lodges, has been re-inventing itself. While many industry players find the current market challenging, Fantail Lodge is positioning itself for the next decade, significantly increasing capacity and upgrading existing premises. It now has more than 30 luxury rooms. Fantail’s founders Harrie and Barbara Geraerts have created a delightful and sustainable environment over the past 20 years. Although the ‘party style’ conference may be a thing of the past with more emphasis on focused working and performance, businesses often have a real desire to escape to the countryside. A business group may occupy the lodge exclusively with everything tailored to its needs and excellent service and facilities exceeding the market’s expectations for ‘big city’ capabilities. The Garden Villas offer space and comfort with a state-of-the-art fibre optic network, fast broadband internet, voice and data carrying capacity, Freeview and Sky TV. This newly installed system allows corporate guests to communicate in real time with overseas offices
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and to download large amounts of data/video during any meeting session. One of the key advantages at Fantail, and increasingly important for businesses and governmental organisations with sensitive data, is that the communications system is guaranteed secure. Fantail Lodge has for two decades been renowned for a well balanced blend of superb facilities, excellent service, and fine cuisine. This alone is a great achievement; but to accomplish growth and expansion in these straitened economic times is no less than remarkable. To host a business meeting or conference at Fantail Lodge Country Estate promises exactly that: something truly remarkable. For more information, contact: Harrie Geraerts at Fantail Lodge Country Estate phone: (07) 549 1581 or 0800 conference email: info@fantaillodge.co.nz web: www.fantaillodge.co.nz
Appreciating quality
Euro... is a statement, a very fine statement An expression of excellence on Auckland’s waterfront, by John Clarke. The city’s real essence is its harbour; its real front entrance the downtown wharf area. It’s just a pity it’s been such a mess for so long. But the refurbished Euro symbolises what can be done and what should be done with this city’s magnificent front door. The reinvented version is still recognisably Euro but it has swallowed up its sister Nourish establishments, the Green Room and Pasha. The enhanced Euro is larger; it is smarter with more choice, more accessible and it is everything we Aucklanders were hoping for. The Nourish Group has now provided the city’s waterfront with what it has always deserved; an establishment of which Aucklanders can at least be vicariously proud. There is a stunning new private dining room, an open chef’s table/bar where one can be cooked for exclusively but not feel excluded. The service area/bar runs almost the whole length of the place and leads directly out onto the full length wharf alfresco area. And, as always, with the passionate chefpatron Simon Gault’s total dedication to quality, there is no compromise. The restaurant has in full view a meat drying/aging room providing all with proof – appreciated or not – of the high quality products Gault prepares for diners, and the respect he has for those products.
The character is Kiwi but the service world class; the balance has always been about right. The food is excellent as one would expect and the range more extensive than before. With the extended premises the whole wining and dining experience has more variety. One wonders why in the past certain journals have refused to give this establishment the recognition it deserves. Perhaps they’ve confused a refusal to compromise on quality and a commitment to excellence with arrogance. But Euro has none of the sneering superiority of some world-famous establishments elsewhere; it has always been convivial and refreshing. The revamp makes this restaurant the newest and best expression of Auckland hospitality. No pale cringe-inducing copy of some indefinable Mediterranean caférestaurant this; Euro is definably Auckland and proud of it. In the new Euro, Gault and his compatriots have managed to identify and portray – in the finest hospitality sense – the essence of Auckland; a long time coming, but here it is. Shed 22 Princes Wharf, Auckland, New Zealand Phone: +64 9 309 9866 www.eurobar.co.nz
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Recognising excellence
Champagne Taittinger By Keith Stewart. O ne of the fundamental themes of the romance that is champagne is that the region and its wines are so deeply ingrained in French culture that it’s impossible for modern people to imagine France without champagne, or champagne without France.
Champagne is the most industrial of all the world’s fine wines, made in large quantities and blended to a standard of consistent reliability using the most precise processes. Since its early days at the beginning of the 19th century it was the focus of considerable technological activity in refining processes of viticulture, crushing, winemaking and clarification that for the most part have become part of the tradition that is now known as the methode champenoise.
La Marquetterie.
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Modern champagne is an extension of that method, utilising new technologies and refinement of both its sense of style and the nature of its market. Taittinger was at the forefront of this extension, indeed it could be argued that Taittinger initiated the wine style that the world now recognises as champagne. Not just the processes by which champagne is made, but the style of the wine and the way it is marketed. Pierre-Charles Taittinger probably had the vision of what he wanted champagne to be, especially Champagne Taittinger, when, at the end of the first World War, he bought Côte des Blancs vineyards as the basis for his blend. He recognised the cultural imperative that champagne’s history represented in its largest market, France, and then he set about delivering
Appreciating quality
– a recipe for prestige performance a style of wine that was not the full flavoured, sweetened champagnes of history that were almost purely drinks of celebration. Instead he looked for a drier, more sophisticated style that would sit comfortably throughout the great daily French occasion, the midday meal. In doing this Taittinger seconded the nose and considerable taste skills of the great Fernand Point, whose restaurant, La Pyramid, was considered the greatest in France. Point was not only the inspiration for the post-war generation of culinary artistry that acclaimed France as the world’s home of haute cuisine, he understood the essential contribution made by finesse. Together he and Claude Taittinger, Pierre-Charles’ second son, evolved the style that is now considered the Taittinger standard; a refined,
elegant wine that has excellent mousse texture (see box), deep, fine flavour that is persistent and a dry, lingering finish. In effect, the ultimate all-round table wine for fine dining. Taittinger also revised the way they marketed champagne, with the same sort of revolutionary zeal that fired Madame Clicquot to send her salesmen off to Imperial Russia 150 years earlier during a trade blockade. Taittinger looked to the more sophisticated modern practice of marketing, rather than the old-fashioned word-of-mouth approach that was the accepted Champagne way. For the first time in the region’s history this meant placing full page, colour advertisements in leading magazines. The art of media brand building had arrived in Reims. The developments proved highly successful and Taittinger was soon established as one of the leading maisons of Champagne, with an international market. The wine also laid the foundations for Taittinger to become one of the world’s great luxury companies, owning a string of spectacular hotel properties, the Hermes luxury goods company and other prestige brands. The luxury goods empire has since become the property of an American investment company, but under Pierre-Emmanuel Taittinger, Claude’s son, the family has remained in control of the champagne house they built, continuing the tradition of elegance and depth, and continuing to innovate. This includes the
From left, Clémence , Vitalie, Pi and Clovis erre-Emm Taittinger anuel .
development of a Grand Cru wine from selected grand cru vineyards, and the remarkable Folies de la Marquetterie, a wine against all accepted Champenoise practice – it is a single vineyard wine, unblended, non-industrial, and a remarkable insight into what inspired Pierre-Charles Taittinger to create his own champagne. M • An exclusive tasting of the Champagne Taittinger range appears on the following page. • For the remarkable history of House Taittinger and an interview with Clovis Taittinger, fourth generation champagne producer, visit www.management.co.nz.
Making wine taste rich Champagne is full of bubbles, that much is obvious. But what purpose do the bubbles serve? The short answer is that they give champagne its rich texture, its taste of luxury. The mousse as the Champenoise call it, is only a successful component in the wine when it delivers a creamy texture, and essential richness that is much more than a simple fizz. Feeling the mousse is a critical function of all, professional champagne tasters, and a particular pleasure for champagne fans.
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Recognising excellence
Taittinger: The Tasting
Keith Stewart tasted the entire range of Champagne Taittinger currently available in New Zealand, and filed these comments:
Taittinger Brut
Taittinger MillesimĂŠ 2004 Brut
Fresh, fine, deeply flavoured wine with a delightfully light creaminess and persistently elegant air.
Taittinger Prestige RosĂŠ
Big and heroic, almost unrecognisable as Taittinger, which can be the case with vintage wines that reflect the character of a single year. All power until the finish when it leaves a sense of detail and subtlety in its wake.
Pretty looking wine with a creamy rich texture and very fragrant manner. Dry and flavoursome, with a tough edge to its graceful demeanour.
Taittinger Folies De La Marquetterie Brut
Taittinger Prelude Grands Crus Energetic feel to the mousse, coming after a fine, fragrant nose that delivers a swathe of pastry and fruit flavours tinged with minerals. Supple and subtle to the very end. A class act indeed.
Aaaah. High toned, fragrant, very elegant wine with a genuine bouquet of complex aromas. Almost fragile in its filigree of flavour, but with real depth holding it all together. Has great harmony and poise as well as an abiding richness that seems golden.
Taittinger Comtes De Champagne RosĂŠ 2004 Smells like cherry blossom and fresh pastry, this brilliantly detailed wine is no blushing virgin, rather it is a perfectly manicured beauty well aware of the world. When it is another 20 years older it is sure to be a revelation.
Taittinger Comtes De Champagne Blanc Des Blancs 1999 The wine looks like a star burst with its flickering shimmer of bubbles. Smells as beautiful as it tastes, a fragrant dazzling experience of elegant winemaking art. Layers and layers of flavour, and in spite of the blanc des blancs tag this is no minor key charmer but a full throated aria – all passion and rich wonder. M
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104 | management.co.nz | DECEMBER 2010
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Appreciating quality
New Zealand’s bottle-fermented sparklers
S
parkling wine has been high on the agenda of New Zealand wine-making from the time Spanish immigrant Joseph Solé arrived from Taragona late in the 19th century with the intention of making top class bubbles. Only two vintages were made, and we know nothing of that wine. In the 1950s Mission Estate made a bottle fermented sparkling wine they called Fontanella, from traditional Champagne grape varieties such as pinot meunier and pinot noir. Again that effort never transformed into a serious sparkling wine industry. But then in the early 1980s in Marlborough the efforts of Champagne-born Daniel le Brun inspired an entire premium quality sparkling wine sector. And today, throughout the world, those who know fine wine see New Zealand as being the biggest challenge to Champagne’s dominance of the international bubbly market.
THE WINES The following selection is chosen by the tasting team from Mediaweb’s grill magazine as an expression of the best of the best in bottle-fermented sparkling wines.
Quartz Reef Methode Traditionnelle NV Source: Bendigo, Central Otago Varieties: pinot noir; chardonnay Fine nose has fresh yeast and a hint of citrus/mineral austerity. Palate texture is immediately impressive, silky rich, with fine fruit/yeast flavour and a long, stylish palate. Absolutely stunning. Winemaker Rudi Bauer notes: focused, fresh and crisp with a beautiful balance and length. Colour: Pale yellow. Bouquet: Royal gala apple with a hint of lime, brioche. Palate: Flirtatious, moreish, enhanced by an invigorating cool, creamy acidity.
No 1 Family Estate No 1 Rosé 2008 Source: Marlborough Varieties: pinot noir Winemaker Daniel Le Brun notes: this exceptional rose is made from 100% Pinot Noir. Delicate salmon-pink with a mass of tiny bubbles, the wine offers a seamless balance of subtle cherry and almond hints combined with a dry acidity. Dry, yet fresh and elegant, this wine leaves a lasting impression of opulence and splendour.
No 1 Family Estate Virginie Cuvée 2006 Methode Traditionelle Brut Source: Marlborough Varieties: pinot noir; chardonnay Winemaker Daniel Le Brun notes: very pale gold with delicate rose petal bubbles. A tightly focussed bouquet; sweet scents of vanilla cream, white flower, nougat and fragrant lemon blossom. The Virginie 2006 delivers further delights on the palate with hints of hazelnut meringue and bright citrus. The rich full palate is made deceptively delicate by a dense satin like mousse. Intriguing and fulfilling, the very pure line and cleansing acidity promises even more for anyone patient enough to wait. M
www.harboursiderestaurant.co.nz 1st Floor The Ferry Building
99 Quay Street Auckland
Phone 09 307 0556
G R E AT S E A F O O D D I N I N G O N T H E B E S T D E C K I N TO W N !
DECEMBER 2010
| management.co.nz | 105
company profile
Displays made easy Companies make a big investment in display equipment for shows and exhibitions, but going it alone can leave displays vulnerable to damage and loss, in storage, set-up, packdown, freighting or cleaning. Now Exhibit Group has found a solution to take all the worry out of display gear storage and set-up for corporates and organisations, with its one-stop, exhibition and event, Display Management Service (DMS). The group’s DMS unit prevents the kinds of disasters that confronted one Exhibit client recently. Says owner Craig Joynt: “We are currently presenting to a client that has lost or had damaged $100,000 worth of display gear in two years – that’s the cost to them in not having a DMS service.” How does it work? DMS allows centralised storage of even large companies’ display equipment. Part of the service is online cataloguing of equipment and managing the storage and handling. This service is customised to suit the client’s needs and requirements. Online ordering and reporting makes it easy for the client, says Joynt. “We have a dedicated DMS team who will do what it takes to get the job done. Our aim is for a zero percent in-the-field failure rate.” Why is it easier? Equipment is maintained to a high standard, repairs are made, hardware is covered by warranty and recommendations can be made on replacing any damaged graphics. There are also reports available on equipment movement and frequency of use. What are the ongoing benefits of DMS? Joynt says clients find the ease of using the service means they can exhibit more frequently, because all the hassle is taken out of the mechanics of the process. “One of our clients went from 35 events in a year to 115,
Exhibit Group helped Hewlett Packard with this major show set-up.
using the same display gear. We are making them money by putting their brand/message in front of more people more often, and they’re finding the benefit far outweighs the cost.” Why is it so popular? Says Joynt: “This service is unique, as it is almost impossible to replicate – and it works for our clients because we are experts in display equipment and our equipment is the absolute best available.” Where to in the future for DMS? The company has just invested in a new warehouse to house display equipment for the growing number of clients and in March is rolling out a new enhanced software package to give clients even more ease of use and reporting. Is it sustainable and green? There is a pivotal approach by Exhibit Group to adhere to the “three Rs” in sustainable practice: • Reducing waste – by providing quality, long lasting, reusable products that will significantly reduce waste. Many products are smaller in
For more information, go to exhibit.co.nz or phone 0800 EXHIBIT.
106 | management.co.nz | DECEMBER 2010
framework composition and made from high quality recyclable materials, not plastic. • Reusing products – by ensuring that the display products are maintained, and can be reused time and time again. • Recycling – by choosing responsible supply partners who use recyclable packaging and product materials. Says Joynt: “As part of Exhibit Group’s wider commitment to R&D, we investigate any new green initiatives that emerge in our industry and wherever appropriate, promote these to our clients. In an effort to offset Exhibit Group’s own carbon footprint we have invested in over 15,000 maturing pine trees within New Zealand.” Why should companies trust Exhibit Group to look after their exhibition needs? “Exhibit Group is into its 29th year in business,” says Joynt. “I have owned it for 15 years. We don’t usually shout about what we do. Our motto is, ‘We say what we do and we do what we say.’ The people in the organisation are, as usual, the key. They are dedicated to quality and service.”
DECEMBER 2010 Vol 05 Number 06
ISSN 1177-5815
on management
New Zealand Institute of Management IN ACTION
Maori managers – will they make any difference? T
he Maori economy is gathering momentum, not only across the primary sector but in service sectors such as media, education and health. As a result, Maori professionals who may have once studied law to help address historic injustices are increasingly choosing business management as a career option. “Management is a holistic discipline, which is attractive to a growing number of emergent leaders in Maori networks who now view management as a career pathway, a life choice,” says Bill Karaitiana, NZIM Southern board member. “While business principles remain the same, for a Maori leader/manager it’s not only about EBIT... the ‘bigger question’ is, will it make any difference for shareholders and/or whänau? Will it change anything in regard to social or economic wellbeing, for this generation and those to come? “Tradition is a point of difference in today’s global context. It is all about the creation of new value chains based on traditional products which are transforming business relationships and performance in a global setting.” However, Maori need to become more connected with customers, better integrated along the value chain and much more demanding about raising performance levels, he stresses. Looking to enhance organisational performance, increasing numbers of Maori businesses and organisations are turning to NZIM programmes. With almost 37,000 students Te Wananga O Aotearoa (TWOA) is one of New Zealand’s largest tertiary providers, offering programmes ranging from leadership and business, to sports, environmental management, teaching and forestry. NZIM provides leadership courses for TWOA staff, and Te Wanaga’s Koro Turia says the relationship works well. “It has been a strategic move, in that we want to provide leaders from within the organisation. We identified various courses that best represent where the organisation is going, and managers discuss these as options when they and staff members identify directions for professional development during annual performance reviews. We felt, because of the relationship built from initial meetings two years ago plus feedback from managers who have been on public NZIM
programmes, that NZIM was able to offer a lot more than just competencies. NZIM was also willing to customise courses to suit our organisation’s needs so that’s been a bonus in terms of setting directions and incorporating our culture into the programmes.” At the Waitemata District Health Board (WDHB), and other DHBs, Ministry of Health CTA Hauora Maori Scholarships are playing a vital role in raising the level of qualification of Maori managers, improving health services and how people relate to patients and clients. WDHB’s Michele Cavanagh says the qualification sought must be on the NZQA framework between Levels 3 and 7, with most of this year’s 50 applicants opting for management courses. The WDHB already had a relationship with NZIM, and has not sought any particular customisation to reflect organisational needs or Maori values. Maori values may well end up enriching management courses even so, given the contribution of participants such as Tanekaha Rosieur. Tanekaha (Nga Puhi, Ngati Whatua) is pou whakahaere (Maori Health Service manager) of Mo Wai Te Ora, the Maori Health Team, at the WDHB, with three decades of experience in Maori health. He received a CTA Hauora Maori Scholarship and graduated this year with the Diploma in Front Line Management. “I found that although the course has been developed for particular needs around front line management, I was interested in it more from a Maori perspective. I speak Maori fluently, and I see these things as like looking through a pair of sunglasses on a beautiful day – if you take them off and look at the same world through paua shell eyes you’ll see things that you don’t see in a Western world view. So I tended to question, and talk about values. I’d say, this is how I see it, you may not agree but I’d like you to consider what I’m talking about because some time in your future you may well draw on these thinkings to help you. “I consciously brought that to the NZIM to try and add value to the whole experience. Working with others and with tutors that were very open to other experiences made it rather a unique experience. The tutors were wonderful – they brought their own perspectives and knowledge but when I spoke to different issues from a Maori perspective, they were all most supportive. I’d like
to think the experience was a very positive one for everyone.” Tanekaha believes the Maori world view can be applied in the business world. “It’s really important that the NZIM thinks about adding an indigenous strand to the whole learning Bill Karaitiana experience. It would enrich the NZIM’s world view, because there’s a tendency to concentrate on a skill base or learning and there’s a humanistic element being left out.” Korio Turia says at the top end of training many Maori managers are immersed in their language, with an expectation that whatever training they receive incorporates the language, culture and Maori values. “From next year our courses will be at that senior management level and up. It’s important not to lose the essence of the actual training, but it’s also about how you communicate when you’re facilitating – is it engaging people, and does that mean getting them to have some input as to how they want that training to go?” Bill Karaitiana sees opportunities for NZIM centred upon Maori business needs. “NZIM must be relevant to add value to these new value chains and to the competencies of emergent Maori business leaders, taking into account the purely commercial aspects as well as traditional, fiduciary and intergenerational aspects. NZIM is well placed to deal with some of the crucial issues of moving start-ups from incubator to fully fledged businesses. The effect of globalisation and how it affects businesses is also crucial. Delivery of such courses would most likely be executed in partnership with clients due to the collaborative nature of operating in the ‘Maori space’. “Maori leadership is multidimensional. We must weave the cloak together to ensure that the correct decisions are made at the right time. Overall as leaders we must lift our game – but at the same time we need to ensure that undue influences do not distort traditional values, because they are our competitive edge.” Focus on Management
Asian Association of
Management Organisations K
Participants on the September Tetramap certificate course.
Tetramap – the Nature of Behaviour W
ith many behavioural tools out there, it is hard to determine which would be the most help to you and your team. Tetramap is a learning tool that is increasing in popularity among the NZIM faculty as its value is evident in training and learning development. Its application to a wide range of situations, including workplace issues, increases its relevance to all organisations and teams. Tetramap incorporates nature’s elements of Earth, Air, Fire and Water as a metaphor for people’s behaviours and attributes. With Earth, users tend to be confident and have goals, control and achievement high on their list of values. Air tends to be orderly and focussed, finding logical solutions and trying to make sense of situations. Users that are Water are caring and loyal, have great patience, and promote harmony. Fire, as the element suggests, are passionate about exploring possibilities and look to encourage others towards bright futures. Because of its ease of content delivery, facilitators using Tetramap find that there is more time for quality learning and in-depth discussions. As most people are looking for a return on investment, Tetramap’s appeal lies in its ability to apply learning straight away. With a better understanding of why you are the way you are, you are in a better position to manage, lead, communicate, deal with conflict and build meaningful relationships. Easy application and taking only minutes to apply, learning to understand your own behaviour and that of others is a powerful tool. NZIM Northern has successfully implemented Tetramap across a range of both public and in-house programmes with positive results. For more information and testimonies please visit the official Tetramap website www.tetramap.com, or contact the NZIM Northern L&D team (0800 800 694) on how your organisation could work with this truly universal application. Focus on Management
evin Gaunt, NZIM Northern Region chief executive, is our representative on the Asian Association of Management Organisations (AAMO) Council. In September he attended the AAMO Council meeting and triennial conference in Hong Kong. As well as New Zealand, 12 countries attended the Council meeting – Australia, Hong Kong, India, Japan, Macau, Malaysia, Mongolia, Nepal, Pakistan, Singapore and Sri Lanka. (Other member countries Cambodia, Mauritius, Philippines, Qatar, South Korea and Taiwan did not attend.) Each country gave an update on what was happening in their region and three main points stood out from the presentations: 1. Research – most of these associations are looking to strengthen their reason for being and are focusing on research as a way of increasing the value of the information they have. This is similar to NZIM’s rationale for including research in its strategic plan. 2. Links to universities – the leading management organisations appear to have developed partnering relationships with universities and are offering top end management development programmes 3. Conferences – a number of member organisations run annual management conferences that have the effect of renewing their organisations and attracting new members. However, these also require
for your
diary Catering to project
N
significant resource and expertise. There is a growing interest within the AAMO membership in the NZIM Management Capability Index. India and Malaysia have both just completed their surveys. Singapore and Mauritius are implementing it, and Australia has asked for information and is considering running it too. Kevin also attended the AAMO triennial conference, which had the theme “Winning in a Changing World – Innovation in Management”. A key theme arising from the conference presentations was that the management paradigm is changing. The reason for this is that Y Generation managers are becoming prevalent and this is leading to a radical shift in what the leaders of organisations are interested in. For years the catch cry has been competition and growth, but the Y Generation is more interested in sustainability – that is, the creation and development of organisations that are able to stay in business for some time and contribute positively to both their workforce and environment. The comment was made many times that most current management organisations and training establishments are focused on the traditional model of management and are failing to recognise and react to the change quickly enough. This is perhaps why some of the leading management organisations are now focusing more strongly on research to identify the changing trends.
22-23 February 2011 TetraHui International “Making the Connections” – Auckland This conference will feature high profile international speakers on behavioural change and organisational learning. They are all exponents of the TetraMap model. For more information visit http://www.tetramap.com/read/tetrahui
managers’ needs
ZIM Northern is proud to announce our partnership with CC Learning to provide the PRINCE2® Foundation with Practitioner programme. Already covering the Project Management Body of Knowledge®, NZIM Northern is now equipped to meet all of a project manager’s needs to further his or her career and fill in any gaps they may have. Whether you are a new project manager, an old hand, or looking to gain a practitioner qualification, this programme is for you. PRINCE2 (Projects IN Controlled Environments) is the standard project management method that is widely used by the UK government. It is also increasingly recognised and utilised by the private sector, both in the UK and internationally. PRINCE was originally established in 1989 and has since evolved, with the latest revision PRINCE2 in 1996. With a long history of good practice,
PRINCE2 has become an internationally accepted standard for project management. Adopting PRINCE2 has the added benefit of this continuity of development through past users as well as providing both flexibility and a customised approach to cater for a wide range of projects. The PRINCE2 method provides a structured approach to project management, by managing projects within a clearly defined framework. It is an easy method to follow that specifies inputs and outputs for each process, thereby providing better control over resources and helping to manage project risk more effectively, leading to fewer mistakes and most positively, saving time and money. For more information on the PRINCE2® Foundation with Practitioner programme, please contact the NZIM Northern L & D team on 0800 800 694, or visit www.nzimnorthern.co.nz.
Presentation of AFNZIM certificate to Peter Bell “Despite the 5am start on the morning of 23 September, it was a privilege and a pleasure to attend the NZIM breakfast meeting in Wellington to support Peter Bell when he was awarded his AFNZIM,” says MASH Trust CEO Carol Searle. Peter is the human resources manager for MASH Trust, which is a non-government organisation providing services for people in the lower North Island with psychiatric, intellectual or physical disability or illness. It employs over 380 staff. “As a CEO it is often difficult to find learning and development opportunities for senior managers in an environment that will stretch them professionally but also provide an avenue for peer support and mentoring. Having Peter
Upcoming
courses for your
diary
Carol Searle, CEO MASH Trust, Peter Bell, HR manager, MASH Trust, Phillip Meyer, president/ chairman NZIM, Karin Callaghan, CEO NZIM Central.
receive the AFNZIM gave MASH an opportunity to acknowledge a senior team member as well as raise the profile of our organisation,” she said.
Leadership (Dip in Mgt Advanced) Objectives: • To develop contemporary strategic thinking and the tools for crafting exceptional business performance through strategic leadership application. • To enable participants to orchestrate ambitious, creative organisational and personal goals that deliver superior performance.
Participants will benefit if they: • wish to influence or motivate their manager, or their colleagues, or need to persuade external contacts such as customers or providers • are responsible for team achievement and need to motivate team members to high standards of productivity and effectiveness • need to persuade others in formal or informal sales and negotiation situations • wish to enhance their personal effectiveness during meetings and other decision-making processes. Dates: Cost: Non-members: Facilitator:
Dates: Cost: Non-members: Facilitator:
March 22 & 23 Members $1100.00 + GST $1450.00 + GST Willem Knibbeler
Willem Knibbeler
W
This intensive two-day programme is for middle or senior executives from diverse functional backgrounds, experiences, and levels of responsibility, from the private or public sector irrespective of size. This includes (but is not limited to) human resource development, marketing, finance, operations, IT, and strategic planning executives. On successful completion of this programme, it is expected you will have the tools to be able to: • Instil an obsession and enthusiasm for change • Accelerate creation and flow of ideas into strategic innovation that creates new business value • Frontier knowledge and best practices in high performance strategic leadership • Drive market growth, orchestrate winning performance, build sustainable value, by linking changes in business strategy to your people capabilities • Leverage information, IT, people and practices to enable better decision-making and innovate in products and services • Exploit what other companies do not know or are not motivated to apply • Develop a well-defined project plan focused on dramatic improvement or transformational change • Use your personal assessment and gap analysis that provides the foundation for taking you to your next level of strategic leadership development and turning inspiration into winning performance.
Developing, Influencing and Motivation Skills This programme will help you to become a skilled persuader in a multitude of settings ranging from being effective in sales and negotiations, to being influential in meetings, presentations and face-to face communication. A highly interactive and practical programme, there is a strong emphasis on individual, paired and group experiential exercises and discussions. Many opportunities are given to test and practise newly acquired skills in a variety of realistic business settings. Proven Accelerated Learning methods and audio-visual feedback are used to anchor new skills and enable participants to apply them immediately.
Introducing
December 13 & 14 Members $1400.00 + GST $1600.00 + GST Willem Knibbeler
illem Knibbeler is Willem Knibbeler an internationally respected organisational development facilitator, with special expertise in emotional intelligence (EQ) and leadership development. Trained in Europe as a change facilitator, Willem has had senior change management experience, initially in Holland and since 1981 in New Zealand. In 1990 Willem established his own practice as a consultant in leadership development, conflict resolution and mediation. He is a senior facilitator for the New Zealand Institute of Management and has consulted to a variety of private sector organisations including Fairfax, Telecom, Fonterra and Mobil Oil. He has also consulted to a variety of public sector organisations including the Departments of Internal Affairs, Corrections, Justice, Inland Revenue, FRST and Agriculture & Forestry. Willem also consults to Parliamentary and Ministerial Services. Willem holds Masters Degrees in Business Administration (MBA), in International Relations (MIR) and in Management (MMgt). He is currently completing work towards a doctoral degree in emotional intelligence and he is accredited in the use of the BarOn EQiTM psychometric measure of emotional intelligence. He is a frequent guest speaker at conferences and seminars.
NZIM/WECC
Women in Business W
omen in Business Breakfast Series NZIM Central in association with the Wellington Employers Chamber of Commerce, held a breakfast meeting on 23 September with guest speaker Melissa Moon. Melissa, twice World Mountain Running champion and this year the first woman up the 86 flights of the Empire State Building, is shown here with Phillip Meyer and Karin Callaghan.
Focus on Management
Excellence in Management 2010 The Advanced Management Programme – a
“must do” N
ZIM Southern’s flagship course, the Advanced Management Programme (AMP), has been benefiting organisations in New Zealand for more than three decades, and continues to produce top results, year after year. It’s a “must do” for managers serious about achieving excellence in their management and leadership functions. New Zealand companies often send senior managers offshore for this level of training but NZIM Southern offers a viable alternative, by bringing an international faculty to New Zealand once a year to provide similar outcomes. AMP is excellent for those aspiring to move into senior management, but also provides an opportunity for senior executives to recharge their batteries and further develop their leadership skills. Designed to drive corporate performance by creating indispensable leaders, the course transforms the way executives think, manage and solve problems. It delivers the confidence and self belief people need to inspire and lead others. An intensive four week programme run in two two-week segments, AMP is highly practical and delivers a return on investment that starts the moment graduates re-enter their work environment. In a tough and uncertain environment, leadership is more important than ever in giving your company a competitive edge. Organisational restructuring and career advancement place managers in more demanding roles, requiring skills beyond their areas of disciplinary training or expertise. Rodney Green, CEO of Ravensdown Fertiliser Co-Op Ltd, says: “Ravensdown utilises AMP as an essential component of our training programme for all senior staff who have significant numbers of people working for them. The faculty of the Advanced Management Programme provide a world-class skills development programme.” We welcome enquiries for this unique programme, commencing 14 June 2011. For a brochure, CD ROM and further information or to register a candidate, contact Keith Walker, business development manager, NZIM Southern, 03 374 8524, keith@nzimsouthern.co.nz.
Focus on Management
Excellence in Management “I recently attended NZIM’s Excellence in Management seven-day programme. We learned, experienced, and grew in our leadership roles as we participated in the programme that consisted of, among many other topics, organisational alignment, finance, change management, marketing, and continuous improvement. We also experienced particular growth in personal development, completing MBTI personality profiling, LPI, leadership profiling, and Career Anchors. Attending the programme was a fantastic way to solidify all of the leadership and management experience of the overall group. I totally recommend the programme. Please feel free to contact me for further information.”
Gail Foster-Bohm, NZIM Southern consultant, 03 374 8527, gail@nzimsouthern.co.nz.
ESCO – a personal journey When you invest time and dollars in a training course you obviously want to be sure you or your staff will benefit. However, the ESCO experience is not easy to communicate, and as a result has acquired something of a mystique. NZIM Southern consultant Harry Fox attended the 145th staging of ESCO and unravelled “the secret”. “One thing participants seemed to share was that, really, we had no idea what we were getting into. Do graduates of ESCO have some sort of collective agreement that they don’t talk about what ESCO really involves? “Now, as an ESCO graduate myself, I have some sympathy for their dilemma. How does one describe an experience that, by its nature, is truly personal and potentially life-changing? Each one of us brings to ESCO our own unique experiences, attitudes and expectations and leaves with a changed perspective, understanding or discovery about ourselves and our future. That’s the dilemma, because prospective participants think they know what they are getting into and why it will be
An amazing tale of
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ZIM Southern recently delivered the 145th staging of its long-standing and very popular programme ESCO – the Discovery. Starting life in 1966, it is remarkable this seven-day residential course continues to ‘hit the mark’ in terms of the impact it makes on the development of those who attend, now totalling over 3500. As “the ultimate interactive leadership challenge”, ESCO caters for people in all management roles. It is a programme of self-discovery designed to enhance an individual’s effectiveness as a leader, mentor and innovator in the workplace.
useful. How do you prepare someone for this experience? “This course really delivers in terms of developing a person’s understanding of their strengths and weaknesses as a leader and manager but equally it provides the confidence to grow in these roles.” If you are considering ESCO for one or more of your staff, you are welcome to contact Harry Fox, 03 374 8526, harry@nzimsouthern.co.nz
longevity The longevity and effectiveness of the course, which is regularly updated to keep it in tune with modern business practices, can be attributed to the passion and commitment of the dedicated and in many cases longserving faculty to whom we are hugely grateful. In 2003 ESCO was introduced into Fiji where it has also now established itself as the ‘must do’ programme for aspiring and current managers. The first ESCO staging for 2011 is planned for 9-16 July. For a no-obligation brochure contact Keith Walker, 03 374 8524 or email keith@nzimsouthern.co.nz.
NORTHERN
All courses shown are in Auckland. For more information phone 0800 800 694 or visit www.nzimnorthern.co.nz
6-7 Interpersonal Communication Skills
7-9 Team Leader 3 – Operational Management
8-10 Project Management
2 4-1 APR Train the Trainer 28-30 Leadership, Motivation & Team 28-30 Professional Administrator Skills 30-31 Budgeting for Non Financial Managers
31-1 APR Corporate Story Telling
15 Effective Use of Time
JAN 2011
18-19 Leadership 19-20 Effective Recruitment
23-24 Performance Management
Building
DEC
23-24 Think On Your Feet
25 Speed & Power Reading
25-27 Team Leader 1 – Essential Skills
26 Effective Business Writing
27 Effective Use of Time
FEB
1-2 Developing a High Performance Team
2-3 Assertiveness Skills
3-4 Workplace Assessment
7-8 Developing Influencing & Motivation Skills
All courses shown are in Wellington unless otherwise indicated. For more information phone 0800 373 700 or visit www.nzimcentral.co.nz
13-14 Leadership (Dip in Management Advanced)
15-16 Confident Communicator
Jan
25 Introduction to Management
17&28 Speed and Power Reading
17 Report Writing
9-10 Report Writing
18 Emotional Intelligence
9-11 Team Leader 2 – Building Effective
21 Manage Personal Work Profiles
17 Effective Use of Time
17 Effective Business Writing
21-22 Interpersonal Communication Skills 23-24 Dealing with Difficult Behaviours 23-24 Coaching and Mentoring
MAR
3-4 Presentation Skills
3-4 Negotiation Skills
3-4 Introduction to Supply Chain Management
9 Active Listening and Questioning
and Interviews
21-23 Project Management
13-14 Basic Training Skills
FEB
15-16 Accounting for Non Accountants – Stage 1
22 Managing Your Time
25 Effective Business Writing
25 Effective Recruitment and Selection
14-16 Team Leader – The Essential Skills
15-16 Practical Project Management, Invercargill
FEB
9 How to Manage Drug & Alcohol Risks in the Workplace (NEW), Invercargill
16-17 How to Manage & Lead Successfully, Invercargill
25 Emotional Intelligence (NEW), Invercargill
28-2 Four Quadrant Leadership, Dunedin
MAR 1 Memory and Mind Mapping
1&24 Introduction to Management 7&8 Managing Small Projects (NZIM Cert in Management)
17 Effective Use of Time
MAR
24&25 Building a Business Case
9 Negotiating Performance Goals 10 Coaching Conversations
Otago/southland DEC
FEB
7-9 Introduction to Management
16-18 Accounting for Non-Accountants
7 Doing Recruitment Well – Advertising
7-9 Project Management
15-16 Human Resource Management
10 Emotional Intelligence
Christchurch DEC
DEC
For more information phone 03 379 2302 (Christchurch & Queenstown), 03 477 9277 (Dunedin) or 03 218 7451 (Invercargill) or visit www.managementsouth.co.nz or.
Techniques to Improve Communication
CENTRAL
Teams
SOUTHern
8 Developing an Internal Mentoring
MAR
7-8 Presentation Skills, Dunedin
15 Managing the Performance of Your
16 Effective Business Writing, Invercargill
17 People & Communication Skills,
18 Dealing with Different People, Dunedin
Staff, Invercargill
Programme (NEW)
Invercargill
11 Facilitate and Capitalise on
8-9 Conflict Management
15 Peer to Peer Mentoring Skills
9-11 Team Leader 3 – Operational
21 Effective Use of Time, Invercargill
16 Managing Your Time
23 How to Manage Drug & Alcohol Risks
17 Constructive Feedback Techniques
21 Train the Trainer
21 Manage Operational Plan
7 Conducting Effective Meetings
Management
10-11 Essential Sales Fundamentals
14 Effective Use of Time
14 Effective Business Writing
15-16 Operational Management
17 Stress Management Strategies
17 Implementing Effective Performance Reviews
Change and Innovation
(NEW)
22&23 Developing Influencing and Motivation Skills
-
25 Resilience in the Workplace (NEW)
21-22 Practical Management Skill
28-30 Project Management
23 Memory & Mind Mapping
31 People Skills for Prince2
& Handling Conflict, Invercargill
in the Workplace (NEW), Dunedin
23-24 Accounting for Non Accountants 1, Invercargill
25 Basic Budgeting, Invercargill
28 The Art of Minute Taking, Dunedin
29 Professional Reception Skills, Dunedin
29-30 Human Resource Management (NEW), Invercargill
30 Essential Skills for the Administrator, Dunedin Focus on Management
LEADERS BUILDING LEADERS Our aim is to build management capability through Research, Learning, and Recognition. Our focus is to: • Research leading management trends and practice and promote a constantly developing model of best management capability for New Zealand. • Enable managers and aspiring managers to participate in learning programmes, mentoring, and events that provide the information and experience they need to develop their capability. • Identify leading management role models and provide awards that recognise the career and educational achievements of managers. NATIONAL BOARD Phillip Meyer FNZIM (Chairman) Brian Soutar AFNZIM Lloyd Davies FNZIM Cheryl Doig fnzim John Sandford FNZIM Gary Sturgess Life FNZIM Lynda Carroll AFNZIM OFFICES National Office Acting CEO Phillip Meyer PO Box 67, Wellington 6140 Ph 0-4-473 0470, Fax 0-4-473 0479 Email national_office@nzim.co.nz National website www.nzim.co.nz Northern President John Sandford FNZIM CEO Kevin Gaunt FNZIM, FAIM PO Box 6600, Wellesley St, Auckland 1141 Ph 0-9-303 9100, Fax 0-9-303 9109 Email kevin_gaunt@nzimnorthern.co.nz Website www.nzimnorthern.co.nz Central President Phillip Meyer FNZIM CEO Karin Callaghan FNZIM FIPAA PO Box 11781, Wellington 6142 Ph 0-4-495 8300, Fax 0-4-495 8301 Email karin_callaghan@nzimcentral.co.nz Website www.nzimcentral.co.nz Southern President Brian Soutar AFNZIM CEO Joseph Thomas AFNZIM PO Box 13044, Christchurch 8141 Ph 0-3-379 2302, Fax 0-3-366 7069 Email joseph@nzimsouthern.co.nz Website www.nzimsouthern.co.nz
Member Comment:
Lynda Carroll AFNZIM Lynda is deputy chair of NZIM Central’s Board of Directors, as well as a member of the national NZIM Board. Her interest in people and performance was triggered while working through the challenges of the early state sector reforms in the Education Department. In 1997, after working for international consultancy DDI for some years, she started her own company Carroll Consulting, specialising in strategy, people and performance.
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eople talk about how you need to have the skills but you also need to be in the right place at the right time. I moved into HR at the time of the State Sector Act in 1988, and the whole of the public sector was looking at life in a completely different way. Then in 1989 the Department of Education was restructured and I was on the establishment committees for the Ministry of Education and the Education Review Office, which was again a fabulous chance to learn. I applied for and was appointed to the role of Corporate Services Manager with the Early Childhood Development Unit in 1989. It was basically a greenfields start up, so what an opportunity! You do look at things quite differently when you go through something like that. One of the key things I believe is that your people really are your fundamental, most valuable resource, whether you’re in private business, in a not-for-profit, or in the state sector. You can duplicate financial and IT systems and processes, and products and services to some degree, but you can’t duplicate your people. If you don’t harness their passion, their energy, their goodwill and their discretionary effort, and utilise them very clearly for the good of the business, then you’re probably never going to be as successful as you could be. One of the key challenges organisations face today is recruiting key talent and then retaining and developing that talent in a manner aligned with business strategy. We hear a lot today about the importance of talent management and identifying our high potentials, and many organisations put a lot of energy and resources into this often small group of people, viewing them as their future leaders. This is, in itself, all well and good, but it is often a small pool and there are a whole lot of other middle managers who may stagnate and feel disengaged because they’re not one of the favoured few. We can’t forget these people as it is these roles that enable our organisations to deliver on our business strategy now. If you look at the state of our organisations and our economy, we’re putting more and more responsibility on people in middle management roles, but we’re not providing them with the skill development and resources they need to be successful, let alone the
recognition. We’re asking an awful lot of these people and we need to be very clear as to how we’re supporting them to meet these challenges, because without our middle managers we’re not going to achieve the operational results we’re searching for. Middle managers are right at the core of business and we’re asking them to be very nimble in terms of being able to lead change and translate strategy into execution, deal with the leadership issues, as well as keep the shareholders happy. So how can we ensure that these people sitting there in the middle are the ones who can actually get it done? How do we make sure that we recruit the right people in the first place, who not only have the skill and experience but also have that motivational fit and the right value set to do the job? How do we recruit so we have people who are going to be successful and have we given sufficient thought to how best to support them and provide them with an environment where they can do their best work in a way that is sustainable in the longer term? NZIM offers a holistic approach to professional development that is very relevant to middle managers. I joined NZIM in the late 1980s when I was a new manager in the state sector because I wanted to learn, and to have a forum to talk about issues I was facing. Later, as a consultant it was a good networking opportunity, and now as a board member it’s an opportunity to give something back. I’ve just been made deputy chair so that’s exciting for me. NZIM’s usefulness for me has changed over the years to provide me with something different and relevant to the various roles I have had. So whether people are members from a corporate perspective or on an individual basis, NZIM provides value in a variety of ways from development and networking opportunities through to interesting up-to-date research on the latest management trends. NZIM prefers to view itself as an organisation that provides an opportunity for people to come together and share their knowledge and ideas, rather than positioning itself as the fountain of all knowledge. This is quite a critical thing... there’s a lot of research and information available out there and the Institute wants its members to have access to that wealth of information in an easy, targeted manner. While NZIM is an established, national organisation with the full range of professional development services it is continually adapting to meet the needs of a new generation who are working and managing in changing environment. As a board member I view this process of change and reinvention as critical to NZIM maintaining its relevance to members and to the sustainability of the organisation.
Management Study Scholarships to Australia
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ext year’s NZIM Foundation Scholarships will comprise a seven-day study tour to Sydney, 5-11 June 2011, and include return air travel, six nights accommodation, registration at the AHRI National Convention & Exposition, and board room briefings with iconic New Zealand business leaders in Sydney. This experience will not only benefit the individual scholarship winners but also enhance their value to their organisations – don’t forget to register for this fantastic opportunity in the New Year at www.nzim.co.nz.
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