Management November 2011 by mediaweb

The Director p65 • Professional Development Guide p44

management.co.nz

Super sizing Auckland

Super sizing Auckland NZ’s biggest corporate transformation PAGE 24

Green dominance Will Asia save the planet? p38

November 2011

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Changing of the guard IoD’s Ralph Chivers p66

>> FROM STRENGTH TO STRENGTH

Kensington Swan builds on the specialist expertise it provides to clients. We welcome a new Partner to our Auckland Property team, Matthew Ockleston, and new Senior

Associate, Karen Dwyer. Matthew brings considerable experience and expertise in public works and infrastructure to these sectors. Other talent recently recruited from New Zealand and globally are Greg Cain, Employment Partner, Wellington; and Jenni Rutter, Special Counsel, Intellectual Property. In addition Greg Milner-White is now Partner, Environment and Resource Management, where his leading expertise helps clients resolve complex issues in a cost-effective manner. Find out how these top specialists can help you to shape your business future.

Matthew Ockleston | Partner Property

Greg Cain | Partner Employment

Jenni Rutter | Special Counsel , Intellectual Property

AU C K L A N D

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Greg Milner-White | Partner Resource Management

Karen Dwyer | Senior Associate, Property

K E N S I N G TO N S WA N . C OM

Thanks for coming to our place

s the Rugby World Cup campaign draws to a close there’s much reflecting on the good, and not so good outcomes. It gave us an excuse to party and boy could we all do with that. A few years’ recession and the slow and rocky stop/ start climb out of it means for many of us that we are working harder than ever and often for diminished returns. Pike River and Christchurch’s devastation shattered a fragile equilibrium even further. So thanks ABs for giving us the chance to whoop and holler, get carried along on the tide of excitement and anticipation and feel great about being Kiwi. I’m writing this just a few days before the final and assuming, like everyone else, that our boys will win. The French will have to pull something very sneaky out of the hat to upset this team that, despite the plague of injuries, has proved its depth. And thanks RWC for giving us the chance to strut our stuff on the world food and hospitality stage. Hopefully we have now kissed goodbye to the cultural cringe that had us in the past trying to match up to a European ideal of haute cuisine. We have carved out an identity in fashion and film and it’s starting to happen with food. We don’t have to compare our cheese with that we can import, or describe our food and cuisine style as being based on that of other cultures. It’s our food – no apologies; just as it’s our ‘place’. I was perplexed to be told not so long ago by the incoming head of Tourism NZ that ‘New Zealand will never get tourists coming for the food and wine’; but rather they come for the scenery and experiences. That may well be the case initially but recommendations and repeat business

www.management.co.nz a mediaweb magazine publisher Toni Myers CONSULTING EDITOR & WRITER-AT-LARGE Reg Birchfield

will drive visitors here for the food, the wine, the culture. We need to start really valuing that ourselves. Mediaweb has been involved with the Taste New Zealand festival taking place, as I write, at Auckland’s Victoria Park. And what a feast it is. Opening day delivered diabolical weather turning the park into a quagmire and no-one seemed to mind. In fact all the stalls were packed with people sheltering from the rain and ordering dishes while they waited out one of the frequent deluges. We announced our inaugural ‘premier’ Taste of New Zealand Awards or TONZAs, at the festival, recognising establishments that deliver food and experiences that are ‘fine expressions’ of the local product, resources and culture. You can find out more about this initiative to promote and celebrate our regional cuisine at www.tonza.co.nz. This spot will be occupied by the musings of another come next issue. I’m delighted to welcome Ruth Le Pla to the managing editorship of NZ Management magazine. Ruth is reprising the role – having given up the editorship in 2007 to pursue a freelance career which she did very successfully for several years. We’ve enticed her back with some new challenges and I look forward to the thoughtful and intelligent perspective she will bring to the role.

CONTRIBUTORS Alice Andrew, Hayley Barnett, Raelene Castle, Bob Edlin, Laura Fayernan, Roger Garrett, Colin James, Vicki Jayne, Jonty Kelt, Ruth Le Pla, Henry Lynch, Jens Mueller, Ron Scott, Peter Tynan, Mark Wager Advertising Manager Rod Myers 09-372 6444, 027-484 8046 admanager@management.co.nz DESIGNER Jan-Michael David COPY & WEB EDITOR Gill Prentice editor@management.co.nz production MANAGER Fran Marshall franm@mediaweb.co.nz NEW SUBSCRIPTIONS www.management.co.nz/subscribe Subscription enquiries subs@mediaweb.co.nz

Phone 09-529 3000, Fax 09-529 3001 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 © 2011: 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 PMP. 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 09-529 3000, Fax 09-529 3001, 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 58 No 10 • ISSN 1174-5339 (Print), 1179-3910 (Online)

Toni Myers, Publisher November 2011

| management.co.nz | 1

contents 24 Cover Story

Super sizing Auckland NZ’s biggest corporate transformation The size of the task is enormous, the scrutiny intense – so, one year in, how does Auckland Council CEO Doug McKay rate his progress on the biggest corporate transformation in New Zealand’s history? Vicki Jayne asks. Cover Photo: Jeff Brass

1 EDITOR’S LETTER 4

INBOX: New and views

FOCUS: Most Reputable Organisation Awards presentation

10 AS I SEE IT: Raelene Castle 13 MANAGERS ABROAD: Jonty Kelt 14 NZIM: Backing the best Reg Birchfield 62 EXECUTIVE DEVELOPMENT 63 EXECS ON THE MOVE OPINION 16 POLITICS: Serving up big changes in the public sector Colin James 17 ECONOMICS: A peek in The CPI basket Bob Edlin Did you notice the QR code on the left of NZ Management’s cover? A QR code is a smartphone friendly barcode. Download a QR code reader to your phone (QR Droid is a good starting point), so you can scan this code and go instantly to the Top 200 Thinking blog. This blog contains both thought leadership from some of New Zealand’s prominent business people and event updates as we draw closer to the 2011 Deloitte/Management magazine Top 200 Awards. If you are having problems using the QR code, you can access the blog at http://blog.top200thinking.co.nz/.

18 LEADERSHIP: Vote for trust Reg Birchfield 19 MANAGING SUSTAINABLY: Share our vision for the future Alice Andrew, Laura Fayernan 20 THOUGHT LEADER: Collaborate & cooperate to grow Henry Lynch 21 BOOKCASE: The billion-dollar man; Thesis survivor stories

Reg Birchfield, Roger Garrett

ADVICE 60 EXEC HEALTH: A healthy incentive Peter Tynan 64 TOP TIPS: Inspire your team Mark Wager

NOVember 2011 • Vol 58 No 10

features 32

Top 200 Thinking 2011 Harnessing the brainpower of our leaders to activate transformation.

John Key, Prime Minister of New Zealand… The opportunities for our country are endless.

34 Face to Face: David G Thomson – the billion-dollar man

According to American management guru and growth champion David G Thomson, more than any other single factor, sales define growth businesses. America’s growth guru was in Auckland recently and talked with Reg Birchfield.

38 Impact Asia: Green dominance – Asia takes the initiative

Asia is carving out for itself an independent and very pragmatic sphere of influence in international environmental regulation and trade in renewable technologies. What does that mean for New Zealand? By Ruth Le Pla.

Professional Development: It’s all about team work

Hayley Barnett looks at how business and academia can work together more effectively. Both academics and business leaders say maintaining an equal partnership is the key to New Zealand’s longterm success.

PLUS: Bi-annual Professional Development Guide

The Director 66 Changing of the guard: The IoD’s Ralph Chivers

Raising governance standards and the reputation of directors are the key drivers for Ralph Chivers in his new role as CEO of the Institute of Directors.

68 The challenge of choosing the CEO

Choosing a chief executive is a board’s single, most important task. New global leadership competency trends are making the selection of the best person for the job harder for Australasian boards. Reg Birchfield talked to Hay Group’s Signe Spencer and Nicholas Conigrave.

70 The governance myth: Size matters

New Zealand’s SMEs are this country’s greatest potential economic resource, says Jens Mueller. To grow, they need to accept the advice and support of knowledgeable and experienced board members.

72 Governing is not easy

Ron Scott, author of the recently published book, The New Director, explains why it’s not easy being a director. 44

inbox Disappearing act

lobal management consulting firm McKinsey & Company has taken another bite at trying to answer the old problem of what exactly it is that women want. In this case, its researchers have drilled deep into corporate America in an attempt to suss out why many businesses are still not tapping in to the full scope of what women can offer. The report “Unlocking the full potential of women in the US economy” includes what its authors call the “striking discovery” that women who have made the leap from entry-level jobs to middle management and on to senior management are not only increasingly interested in becoming leaders, but also increasingly confident that they can. So where’s the problem? Maybe it’s easier to say what the problem isn’t. According to report authors Joanna Barsh and Lareina Yee, the sticking point isn’t simply a lack of flexible working conditions. Nor is it lack of support for working mothers or women’s desire to opt out. “Most women can’t afford to opt out,” they note. “Instead, entrenched mindsets and behaviours – at companies and among women themselves – are two of the biggest culprits in preventing women from

Women’s interest in being leaders increases as they progress from entry to middle management. Women in entry level positions

Women in middle-management positions

Desire to move to the next level at work, % who agree/strongly agree 79

Interest in executive management roles, % who agree/strongly agree

83 It is important to me to have a leadership role in my organisation I have always aspired to be in top management

Being in top management is worth the cost

32 51 16 31 14 22

Source: Feb 2011 McKinsey survey of 1,000 female and 525 male respondents currently working in large corporations of professional-service firms

advancing,” the report says. “The issue is particularly acute at the transition from middle manager to senior manager, a point when women have proven themselves professionally yet a disproportionate share leave corporate careers. For many, invisible biases become impassable.” Barsh, a director in McKinsey’s New York office, and Yee, a principal in the company’s San Francisco office, surveyed 2500 men and women for their research. They backed this up with reviews of over 100 existing research papers, and interviews with 30 chief diversity officers and experts. Their findings and solutions are likely to strike a strong chord with corporate New Zealand which

has for a long time been tackling similar issues. In the case of corporate America, Barsh and Yee conclude that barriers to advancement include lack of role models, being excluded from informal networks and not having a sponsor in upper management to create opportunities for them. Other McKinsey initiatives have already produced the insight that women often choose to stay in jobs that provide them with a deep sense of meaning professionally. “More than men, women prize the opportunity to put their energies into making a difference and working closely with colleagues,” says McKinsey. “Women don’t want to trade that joy for what they fear will

be energy-draining meetings and corporate politics at the next management echelon.” McKinsey says most companies are already trying to reduce structural problems such as a lack of role models or access to informal networks. Many are also trying to adapt their work practices to meet their employees’ desire for a worklife balance. But Barsh and Yee say the research revealed some more “insidious, difficult-to-address” problems. These include perceptions among senior executives that certain jobs just shouldn’t be available to women. They also include a tendency to reward men for their potential but women only for their performance. “Many women react to these barriers and biases by reducing their corporate ambitions in favour of achieving greater satisfaction across their lives – and companies lose out entirely,” the report says. “If women are to reach their full potential in the economy, companies must do at least as much to address those issues as they are doing to address the ones they can more easily see,” McKinsey says. • For more information: http:// tiny.cc/t3npb M

NZ Management’s most sought-after issue: • Deloitte/Management magazine’s Top 200 companies & awards • Executive Indulgencies – from iPads & iPhones to marque cars, and luxury lodges

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4 | management.co.nz | November 2011

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Finalists announced in NZICA Leadership Awards

ransformational leadership is the common quality displayed by finalists for New Zealand’s top professional accountant title in the 2011 New Zealand Institute of Chartered Accountants Leadership Awards. Independent director Jan Dawson, BNZ finance controller Nikki Fowler, and chancellor of Auckland University Roger France are up for the annual event’s premier award, the Crombie Lockwood Chartered Accountant of the Year recognising those at the pinnacle of the profession. All three truly demonstrate effective leadership that has contributed to the success of their employer, their clients and the accounting profession in general. Jan Dawson, the first woman in Australasia to lead a ‘big four’ firm as CEO and chair of KPMG from 2006-2011, is recognised as an expert in corporate governance, risk management and as an audit partner. Under her visionary leadership, KPMG New Zealand was transformed into a unified, high-capability network which increased its net revenue by 18 percent during her tenure, a period which included two recessions. As an independent director,

Dawson now holds directorships at Air New Zealand, Westpac New Zealand, is deputy chair of Counties Manukau District Health Board and a member of the University of Auckland Council. During her term leading KPMG New Zealand she was a board member of KPMG Asia Pacific region and

Roger France.

KPMG Australia and a councillor of KPMG International. She is currently president of Yachting New Zealand. Roger France, now in his third term as chancellor of Auckland University, has led many organisations through challenging times in changing roles from managing partner, to chief financial officer and as a sought-after board member. As executive director and acting CEO of Air New Zealand in 2001, France took charge

during the challenges following Ansett Australia’s collapse in 2001. As managing partner of Coopers & Lybrand in Auckland for five years, he lifted the firm from ‘post-1987’ demoralisation into a thriving practice. France is a current director of Fisher & Paykel Healthcare Corporation, chairman of

in 2004, Fowler has led the global implementation of SAP, the transition to IFRS and the migration of processes back to New Zealand. This has involved building a completely new – and award-winning – finance control team, while introducing a robust new risk management and reconciliation framework

Jan Dawson.

Nikki Fowler.

Tappenden Holdings, and deputy chair of Air New Zealand. Past positions include chair of Blue Star Holdings Group and Fonterra’s Fair Value Share Review Committee. Nikki Fowler has, in just 15 years, moved from traditional accounting practice to senior financial governance in the banking sector, achieving significant success as a leader and manager committed to excellence. Since becoming financial controller for the BNZ

Manage your Taxi Spend with Innovation and Technology

and embedding a culture of continuous improvement. A significant increase in staff engagement from 55 percent in 2007 to 77 percent in 2011 is evidence of her excellence in leadership – along with the team winning the 2011 Finance Team of the Year Award at the CFO Summit. • The NZICA Leadership Award winners will be announced on 30 December. For finalists in the other four categories visit www.nzica.org.nz. M

tel: 09 306 1790 email: enquiries@taxicharge.co.nz

November 2011

| management.co.nz | 5

inbox Quids in ew research by nef (the new economics foundation) spells out the ‘too-big-to-fail’ subsidy for each of Britain’s so-called big five banks for the first time. Founded in 1986 and operating out of London in the UK, nef describes itself as an “independent think-and-do tank that inspires and demonstrates real economic well-being”. In its report, “Quid Pro Quo”, the foundation says that although the subsidy has fallen from its mid-2009 peak, the big five UK banks still enjoyed a combined subsidy of £46 billion (around NZ$91.48 billion) last year. “Barclays enjoyed an indirect subsidy of £10 billion from the

British public,” it says. “Lloyds, RBS, HSBC and Nationwide also enjoyed subsidies of £15 billion, £13 billion, £7 billion and £1 billion respectively.” The Quid Pro Quo authors point out that the ‘too-big-to-fail’ subsidy for the UK’s largest four banks is 62 percent higher than the equivalent subsidy in Germany, despite the fact that the German economy is significantly larger. “This shows that there is nothing inevitable about the level of subsidy.” The too-big-to-fail subsidy enables banks with government guarantees to access finance at a significantly lower rate than would otherwise be possible. The nef notes

Opportunity for young female leaders

$50,000 annual scholarship set up to foster the next generation of women leaders is calling for applications for its 2012 scholarship. The Yvonne Smith Charitable Trust awards one scholarship annually for a woman embarking on post-graduate studies with preference given to studies in business, political science, economics or law. Divya Dhar, 2011 scholarship winner, has begun a joint Masters in Public Policy and Business Administration at Harvard University. She was the Young New Zealander of the Year in 2010. She has been a doctor at Middlemore Hospital and her goal is to develop and lead publicprivate health partnerships that will impact health outcomes in New Zealand and globally.

Divya Dhar.

The scholarship was set up in 1999 by New Zealander Yvonne Smith. “I admire the way New Zealand women can hold their own with other leaders on the world stage and I want to foster the education of the next generation of women leaders,” she said at time. Applications for the 2012 scholarship close on 15 December 2011. Application forms and regulations can be found at www.fortunemanning.co.nz. M

6 | management.co.nz | November 2011

that proposals on ring-fencing and competition have failed to tackle fundamental structural issues. The nef’s head of banking and finance, Tony Greenham, has described the banks as “still in the casino with our cash and the tables are fixed in their favour”. He says that the quid pro quo for the banks’ unique position, and the unique privileges they enjoy, is fair, strong and effective regulation and a fair financial contribution to the British public. “The longer government dodges reform, the longer the British public and the British economy will continue to pay for the banks’ failure,” says Greenham. “The time for hesitation is over.” M

that no other industry can tap into such a subsidy. The foundation was set up by the leaders of The Other Economic Summit (TOES) which forced issues such as international debt onto the agenda of the G7 and G8 summits. The Quid Pro Quo report forms part of its “Banking for the great transition” campaign. This aims to tackle recession, the urgent shift to a low carbon economy and worsening levels of corrosive social inequality through a “great transition” to a new finance system that is “fit for purpose”. “Such change is necessary, possible and desirable,” the foundation says. The Quid Pro Quo report argues

New mobile phone PA service

ravelling executives who find themselves jet-lagged in an unfamiliar city half way around the globe can now call on the assistance of a PA at the touch of a button. TravelSim, a company which specialises in mobile phone services for international travellers, has launched a PA service accessible around the clock, 365 days a year. It provides travel information and support, business services and medical assistance and emergency services to travellers, as well as live language interpretation services in more than 70 languages. James Currah, New Zealand CEO of TravelSIM, says the new service provides travellers with practical information and assistance, no matter where they are in the world. “The mobile phone PA service can make sure a limo is there to take you from the airport to the hotel, reserve a table at the best

Photo: George Doyle (thinkstockphotos.com)

restaurant in town and book tickets to a show following your meal. Similar services are offered through platinum credit cards, but at a much greater cost,” Currah says. • TravelSIM features, rates and coverage destinations can be viewed at www.travelsim.co.nz M

Let there be light

esearch by the Energy Efficiency and Conservation Agency (EECA) has found that switching to energy efficient lighting is one of the best returns on investment available for businesses looking to reduce their energy use. Office lighting consumes 40 percent of an average building’s energy use, and currently 70 percent of all office lighting is based on old, inefficient technology, says Michael Downie,

general manager Philips Lighting New Zealand and Australia. He says the lighting technology of the future is LED (light emitting diode). Lasting up to 25 times longer and using up to 80 percent less energy than incandescent lighting, LEDs also contain no mercury or lead and emit little heat. “Due to the compelling environmental and financial benefits of LEDs, they are expected to make up at least 50 percent of global lighting by as early as 2015, and 75

New job forecasts unrealistic

early half of business decision makers view government job creation forecasts as unrealistic. Four months after the Government delivered its 2011-2012 Budget, forecasting economic growth at 4% next year and the creation of 170,000 new jobs over the next four years, 47.2% say the forecasts are unrealistic. Among the population as a whole 49.7% think the forecasts unrealistic. The most optimistic decision makers about the forecasts are in the agriculture, forestry and fishing sectors (28.7% say they’re realistic). The least optimistic are in government administration and defence, where only 10.1% say they’re realistic. M

percent by the end of this decade,” says Downie. “Additional energy savings can be made using LED lighting systems that can be set to automatically adjust to the levels of natural light coming into a building.” One of the obstacles for some businesses looking to become more energy efficient may be a perception that it is too hard to change because of the constraints of their existing infrastructure, says Downie. “However some energy saving measures used in Green Star-rated buildings can be incorporated into existing buildings without the headache of a major construction project. Lighting is one of these measures.” Downie also contends that changing a light bulb can do more

than just save businesses money – it can create a totally different working environment and raise employee productivity. A 2006 paper entitled “Healthy, wealthy and wise. A health impact assessment of Future currents: Electricity scenarios for New Zealand 2005–2050” by the Parliamentary Commissioner for the Environment showed that improved lighting design increased worker productivity by up to 23 percent. “New lighting technology can be programmed to simulate natural daylight to stay in tune with people’s natural biorhythms. In a trial run by Philips in a 23-storey office block in the Netherlands where this was done, staff reported feeling more energised and having a greater sense of wellbeing.” M

Eliminate cell phone disruptions!

In its 2011 Budget statement, the Government forecast economic growth at 4% next year and that 170,000 new jobs will be created over the next four years. How realistic do you think these assumptions are? All New Zealand Decision makers A. Very realistic

1.9%

2.8%

B. Realistic

6.1%

19.6%

C. Neutral

23.5%

26.0%

D. Unrealistic

31.3%

31.1%

E. Very unrealistic

18.4%

16.2%

F. I really don’t know

8.8%

4.3%

Source: Horizon Research, September 12-30, 2011. 2,468 respondents including 561 decision makers (business managers, executives, proprietors, self-employed, professionals and senior government officials). Weighted. Margins of error +/- 2% on the national sample, +/-4.1% on the decision maker sub sample. On the web: www.horizonpoll.co.nz

30 Door Cell Phone Cabinet Eliminate call disruptions at meetings, texting, cheating or illegal photography. Metal cabinet securely holds 30 cell phones, iPods, cameras, wallets, keys etc. For office buildings, schools, universities, gymnasiums, swimming pools, hospitals, government departments, military & industrial facilities etc. Locker size 140w x 140h x 135d Cabinet size 750w x 870h x 150d Also available with 5, 10, 15, 20 or 25 doors Standard colour – Sandstone Grey Other colours upon request.

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November 2011

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inbox Parker’s prize

his year’s trying times have unearthed strong talent in the latest Communicator of the Year awards. The College of Fellows of the Public Relations Institute of New Zealand (PRINZ) has named Christchurch Mayor Bob Parker as its top pick for 2011. Mayor Parker was chosen for his handling of communication around the 4 September 2010 earthquake in Christchurch. “At a time when people wanted a communicator and a leader, he stepped up and performed both roles extremely well,” says PRINZ. “Always there, always articulate despite no doubt having his own issues, ongoing aftershocks and lack of sleep, he set an example of being

a great communicator.” Response to the Canterbury earthquakes also drew praise for Roger Sutton, CEO of CERA, who in the aftermath of both Canterbury earthquakes stood out as an outstanding communicator in his role at that time as CEO of Orion New Zealand. “His approach to communicating with the community was open and honest – he was totally believable,” says PRINZ. The Christchurch earthquakes also revealed the quick-fire talent of sign language interpreter Jeremy Borland who became a familiar figure on the nation’s TV screens during the earthquake briefings. PRINZ praised him for carrying out his duties efficiently “and with just the right amount of

8 | management.co.nz | November 2011

2011's PRINZ Communicator of the Year: Bob Parker.

personality coming through to stamp him as a communicator in his own right, without impeding the communication of the people whose words he was signing”. In a similar vein, the Pike River Coalmine disaster evinced the talent of CEO Peter Whittall who very early on stepped up to take

on the mantle of the public face of Pike River. Other nominees included the late Sir Paul Reeves, 15th Governor-General of New Zealand, physicist and New Zealander of the Year 2010 Sir Paul Callaghan, and Zespri CEO Lain Jager. The award recognises people who demonstrate excellent personal communication skills. Nominees are public or private sector leaders who espouse open and honest communications within their organisation. Previous PRINZ Communicator of the Year recipients have included Judge Andrew Becroft, Dr Pita Sharples, Alan Duff, Dame Catherine Tizard, Bruce Slane and the late Sir Peter Blake. M

FOCUS M

2 NZ Management magazine and Hay Group’s Most Reputable Organisation Awards presentation, hosted by Kensington Swan at their premises in Viaduct Harbour, 13 October. 1 Nikki Langford (Kensington Swan), Michael O’Brien (Kensington Swan), John Beaglehole (MAFF), Natalie Verdouw (Auckland Council). 2 George Carter (AMP Capital Investors NZ), Simon Walter (Beca Group), Greg Cain (Kensington Swan).

3 Greg Cain (Kensington Swan), John Beaglehole (MAFF), Allan Boreham (New Zealand Police). 4 Ian MacRae (Hay Group), Reg Birchfield (RJ Media). 5 Geoff Lawrie (Cisco Systems), Clayton Kimpton (Kensington Swan), Shelley Watson (Auckland Council), Blair Grubb (Localist). 6 Toni Myers (Mediaweb), with guest speaker Sam Knowles (Localist). 7 Major Heather Rodwell, divisional commander of the Salvation Army New Zealand, accepts the award for Most Reputable Not For Profit.

8 Vicki Blyth, group communications manager Solid Energy New Zealand, accepts the Most Reputable State Owned Enterprise Award. 9 Allan Boreham, assistant commissioner New Zealand Police, accepts the award for Most Reputable Government Organisation.

10 David Carter, executive director Beca Group, acknowledges Beca's success in being named 2011's Most Reputable Organisation.

November 2011

| management.co.nz | 9

M AS I SEE IT

Raelene Castle Raelene Castle is chief executive of Netball New Zealand. She received an Emerging Leaders Award at this year’s Sir Peter Blake Leadership Awards. How would you describe the New Zealand identity? We’re all about No 8 wire. New Zealanders have a global reputation as a people prepared to roll up their sleeves and work hard, who are really passionate and proud of who we are as a country and what we stand for, and proud of our achievements – in sport, in culture and on the political stage. We’re also renowned for being able to fix anything with a piece of No 8 wire. Metaphorically, I think I use it in my job every day. What will be the country’s next major challenge? Obesity is our next big challenge. The issue is twofold. First, political correctness has meant our kids don’t get out and play rough and tumble like they used to, and they don’t learn that you can only eat whatever you want if you have a healthy lifestyle to back that up. Second is the fact that physical education is not always compulsory in schools today. Kids aren’t growing up in that environment of 20-30 years ago, where we had three or four PE sessions a week. They need to be exposed to a whole range of sports to discover what they like, so they can give it go, and hopefully go on to have a lifelong love affair with that sport. The implications of being overweight and obese are not only on our health, but also on the social and economic welfare of New Zealand. What do we need to do to prepare for this? We need to make sure that PE is compulsory in the school curriculum, with ball or skipping rope in hand. We need to make sure that sport is affordable for our children, so every Kiwi kid can play a team or individual sport and develop a love of outdoor activities, learn team work, problem solving, leadership skills and respect for elders… all the things that go hand-in-hand with playing sport. A love of physical activity will live with you for a lifetime. That’s one of the great things about netball, we strive to make it affordable for kids to play. I believe it’s fundamental for the future of New Zealand. M

10 | management.co.nz | NOVEMBER 2011

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MANAGERS ABROAD M

Making it happen Jonty Kelt, a member of Kea North America, is co-founder and CEO of Group Commerce. What prompted you to seek work out of NZ? I worked for Macquarie Bank in Auckland for a few years after university and it wasn’t a matter of ‘if’ but ‘when’ I would head to the London for a work/ life experience. Why not? I started my first company there (an internet marketing company), then to Shanghai where I helped start another business (sports and entertainment events), then back to London to run part of Doubleclick’s international business before being bought by Google and moving to New York. What is your current role? I am co-founder and CEO of groupcommerce.com, an e-commerce technology platform tailored to the needs of media companies. We help them create new revenue streams and new ways to leverage their content in a digital world. What are its main challenges? Since writing the first product spec on the edge of my kitchen table 18 months ago, my team and I have been ‘making it up as we go’. That’s an exciting process, but the constant uncertainty of ‘how are we going to handle that?’ is a constant challenge. We’re now 100 staff in 11 cities, providing a complex technology and services solution to large and demanding media companies. Other challenges include: • Getting important initial commitments from staff, clients and investors by communicating a vision and value proposition, for something that doesn’t yet exist. It requires clarity of communication and contagious conviction about the market we target, the business model we address it with, and why we’ll be successful. • Constantly swapping mindset from

thinking creatively about how to solve a new problem or create a solution; to thinking logically about how to turn that into a repeatable process which will enable our business to scale. • In a fast-growing market it feels like your competition never sleeps, so neither can you. Engendering a culture that people find fun and fulfilling, while ensuring they maintain intensity and focus is a hard balance to maintain, and is critical to winning. • Also challenging is building a culture based on constant honest communication that ensures people feel comfortable challenging one another, which increases the likelihood that we can move fast and good decisions are made. What are the learnings from all of this? People are very motivated by a clearly communicated vision, supported by logic and facts, in an environment they can openly contribute their ideas to, and which they can see can help impact outcomes. Although as founding CEO you initially have to consider and touch everything, as you build out your management team you can entrust each function so that you’re eventually in a position to actually ‘be CEO’. For me that’s thinking about four questions: Does everybody understand our vision, strategy and what they need to do in pursuit of it? Are we recruiting and retaining the best people? Can I help win/retain/grow the best and biggest customers, and do we have enough cash, and how should we use it? At that point, everything else is someone else’s job and if you find yourself getting dragged into helping do another

person’s job, then you probably don’t have the right person doing it. How do you view New Zealand as a country and economic entity? I love New Zealand, and have deep respect for the qualities of its people: they are naturally capable and have incredible ‘make it happen’ skills and attitude. But in education and society there’s not enough focus on and celebration of the people that create useful things (especially technology). Without those people, there is no economy. And there’s certainly not a growing and globally competitive New Zealand economy. Thinking back on my days at university it seemed that getting a job in the service sector as a banker, accountant or lawyer was all you needed to get set in life. That’s backwards thinking. There needs to be a system and attitude that supports people who create stuff, and a structure that systematically helps get proof of the usefulness of those things in front of investors and into international markets. Then little old New Zealand can extract more than its fair share of global markets and be a dynamic, growing, relevant economy… as well as a great place to live. M

Jonty Kelt is a member of Kea, New Zealand’s global talent community. www.keanewzealand.com

November 2011

| management.co.nz | 13

NZIM

Backing the best The NZIM/Eagle Technology Young Executive of the Year will be named at this month’s Deloitte/Management magazine Top 200 Awards. The award is in its 16th year and Reg Birchfield explains why NZIM believes it is important to New Zealand management and leadership.

here isn’t, as Britain’s Financial Times newspaper recently reminded us, any such thing as a Nobel prize for management. But to be honest, it would be difficult to make a compelling case for adding the science of management to one of the five prizes of physics, chemistry, physiology and medicine, literature and peace specified by Sweden’s Alfred Nobel. An award for economists was established in 1968 by the Swedish Central Bank but, it’s not technically a Nobel prize. Nevertheless, gifted business leaders can make a difference to our world. Apple’s Steve Jobs is an obvious contemporary example. And, as the FT article also pointed out, the management world is fairly indebted to the incisive thoughts of management thinker Peter Drucker. So, without a Nobel to aim for, countries will have to make do with what they have to acknowledge outstanding and enterprising individuals in business. NZIM and NZ Management magazine established the Young Executive of the Year Award to recognise and applaud the accomplishments and potential of the next generation of managers and leaders. And that is important for a number of good reasons. Enterprise needs competent and committed young leaders. The shortage

14 | management.co.nz | November 2011

of management and leadership talent is as acute as the abundance of problems and opportunities awaiting them. The Young Executive of the Year Award was established to “recognise stand-out individuals”, no more than 35 years old. Finalists are identified as those “prepared to go beyond perceived limitations” and to strive for personal and organisational excellence. Over the 15 years of it history, the Award has spotlighted some exceptional individuals. (See panel) The need to encourage, promote and role model young managers and leaders is as obvious as it is necessary. As global consultancy Deloitte pointed out in a study published earlier this year: “Talent shortages are affecting business results today, and shortages are anticipated to intensify as the economy improves.” Talent strategies The pace of globalisation, the aging of the workforce and advances in technology are all key influences on New Zealand’s talent shortages, the Deloitte study found. And these trends “create new economic conditions that call for new talent strategies”. It warned, however, that too many organisations are relying on “old tactics and outdated programmes” to tackle the looming talent shortage dilemma. The Deloitte survey of 360 New Zea-

Roll of Honour: Young Executives of the Year 2000-2010 2010 Claire Szabo, English Language Partners NZ 2009 David Larsen, RayGlass 2008 Jono Brent, Christchurch City Care 2007 Mason Pratt, Provoke Solutions 2006 Brett Gamble, Solid Energy 2005 Grant Watson, McDonald’s Restaurants 2004 Anushiya Ayingaran, Nurse Maude Association 2003 Mike Sang, Airways Corporation 2002 Andrea McLeod, Public Health South 2001 Dr Richard Templer, Industrial Research 2000 Joseph Thomas, Chatham Islands Enterprise Trust

land businesses identified three critical issues. It found that: • Talent problems are real, not an abstract concept of something that may happen in the future. • The shortage of talent will get worse. • Employers must spend more time understanding what their employees really want. While the majority of employers surveyed – 81 percent – said talent shortages were currently impacting their businesses, the problem did not seem to translate into action. “Employers should be doing more

to analyse and predict their future talent needs over the next two to three years, and what they can do to limit shortages and compete in an increasingly tight talent market,” the Deloitte study said. As economic conditions improve, the shortage will worsen and “valuable employees will be enticed away by better opportunities”, more so than in the past couple of years the study warned. And understanding what employees really want should now be an employer priority. Now is the time for organisations to reflect seriously on the “overall people strategies”. Those strategies must be aligned with what employees’ value and with the organisation’s overall business objectives. “Retention and engagement strategies are just as important as recruitment strategies,” the study concluded. On the move The Deloitte survey also found a large number of employees expected to move on from their current employer. That, if nothing else, should be ringing alarm bells. NZIM’s chief executive Kevin Gaunt agrees with the Deloitte findings that too few employers devote sufficient thought to their overall people strategies, a consequence of which is that employees are constantly on the look out for better employers and job opportunities. “And employers who encourage their best people to step up for the Young Executive of the Year Award provide tangible evidence of their support for the individual and recognition of her or his accomplishments. That is no small thing,” says Gaunt. The Deloitte study suggests a level of employer complacency when it comes to predicting future staff turnover levels. Most of those surveyed are unconvinced they will face “significant” voluntary turnover rates. The result surprised the consultancy’s analysts who warned that the “relaxed levels of concern” probably reflected a lack of real understanding of the problem. And nearly one in four of those who indicated “at least some likelihood of departure” held CXO positions. Both Deloitte and NZIM believe today’s new economic and general business

conditions require new talent strategies. The Deloitte research endorses the approach and message NZIM has been giving its members and service-user organisations over the past two or three years that people development is critical to organisational success and future survival. Most impact The Deloitte study identified two people management practices that will have the most impact on the success of businesses over the next two to three years. They are employee/leadership development (cited by 76 percent of respondents) and employee communications. “Given that managers were cited as the types of employees in shortest supply, it is therefore not surprising that their development features so prominently. By developing leadership talent within a company, employers can develop a leadership pipeline and build succession from within,” the study suggested. However, performance management was prioritised by only 32 percent of respondents. This is lower than comparable research from overseas. The finding, when combined with the generally less-thandesirable management performance findings of NZIM’s own Management Capability Index, endorses the belief that New Zealand’s performance management practices lag behind world standards. Larger organisations in the study placed relatively more emphasis on employee/ leadership development and workplace planning, and relatively less emphasis on employee communications. But regardless of size, the study concluded that employers need to give more thought to understanding the focus of their leadership and employee development programmes. The conclusion is one with which Gaunt agrees. “And the Young Executive Award provides us with another opportunity every year to focus on and show New Zealand enterprise just how important our young leaders and the next generation of employees are to New Zealand,” he adds. M Reg Birchfield Life FNZIM is a writer on management and leadership. reg@rjmedia.co.nz

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 Gary Sturgess Life FNZIM (Chairman) Lynda Carroll AFNZIM Dan Coward AFNZIM MOHS BRIAN SOUTAR AFNZIM John Sandford FNZIM Ash Dixon MNZIM Joanne O’Connor MNZIM Mark Woodard AFNZIM NZIM Inc Chairman: Gary Sturgess Life FNZIM Deputy Chair: Lynda Carroll AFNZIM PO Box 67, Wellington 6140 Ph 0-4-473 0470, Fax 0-4-473 0479 Email national_office@nzim.co.nz Website: www.nzim.co.nz 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 Northern Region Regional Director: John Sandford FNZIM Regional Contact: Tait Grindley PO Box 6600, Wellesley St, Auckland 1141 Ph 0-9-303 9100, Fax 0-9-303 9109 Email enquiries@nzimnorthern.co.nz Website www.nzimnorthern.co.nz Central Region Regional Director: Lynda Carroll AFNZIM Regional Contact: Susan Andrews PO Box 11781, Wellington 6142 Ph 0-4-495 8300, Fax 0-4-495 8301 Email enquiries@nzimcentral.co.nz Website www.nzimcentral.co.nz Southern Region Regional Director: Brian Soutar AFNZIM Regional CEO: Joseph Thomas AFNZIM PO Box 13044, Christchurch 8141 Ph 0-3-379 2302, Fax 0-03-357 8003 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

November 2011

| management.co.nz | 15

M politics Colin James

Serving up big changes in the public sector

ublic sector managers can expect faster and more far-reaching change if National gets a second term on November 26. This could be the biggest reshaping since the radical 1980s’ reforms. One big driver is fiscal consolidation which requires the state to occupy a smaller share of the economy. Another is political instinct: three of the governing parties want a smaller state sector anyway. But the public service is large and it votes (especially if made redundant). So when Bill English first pushed for deep change, he was in a cabinet minority. This year his colleagues have been coming onside.

reprioritisation and staff cuts. The prod was an invitation amounting to an instruction to chief executives – and his Treasury – to be imaginative about how to get “more with less”. As in policy, English has told officials to surprise him and shown he means it. He wants a “culture change, not a savings change”. Some chief executives responded early and even enthusiastically. Over time most others have joined. That has helped change ministers’ minds. Early this year a Treasury-serviced “better public services” advisory group of senior chief executives and three private sector experts (who, importantly, know the public sector

The state has to remake itself to serve a different public. His timing might also be propitious. English notes that governments in our sorts of countries, against which we have traditionally benchmarked ourselves, are cutting back to manage debt burdens. And, while the rising Asian states, with which we will increasingly trade and so increasingly compare ourselves, will expand their state services, that is unlikely to be to European (or our) levels. That’s the push. The pull will come from the under-50s and particularly the under-35s, who expect goods and services to be fast, easily accessed, tailored and customised. The state has to remake itself to serve a different public. English’s initial approach was electric prod and stick. The stick was a freeze on baselines, forcing 16 | management.co.nz | NOVember 2011

is different) was set up to inject new ideas. Some close to the group think the result could be as transformative and world-leading as the 1980 reforms. Its brief is framed as clearer priorities (the government doing only what it is best placed to do), high-quality services and reduced waste. One element is “best sourcing” of providers, determined by the government for specialist services (such as prisons) and by consumers for services provided directly to citizens (such as rest homes). That does not come down to price alone. It aims to incentivise performance and innovation with varying methods of “payment”. There is once again a quest to gear services to “outcomes”, not just tick off the “purchase” of “outputs”. Reformers

have found for 20 years that is easier said than done. One idea: develop high-level or big group outputs. That requires changes to contracting, which might be standardised, though tailored where necessary, with standardised auditing to reduce outside providers’ often high compliance costs. They might be opt-in or opt-out, with guidelines as to where they are useful and where not. They could be applied internally within agencies. Another is to bring functions together in inventive ways: some amalgamations but also clustering of agencies or activities rather than physically joining up, with more flexible financial rules allowing collective accountability. This might be paralleled by super-ministers: watch if economic development and primary resources stay with a single minister (David Carter? Steven Joyce?), with science under the wing. Four-year agency budget plans (in place of annual plus projections) kick in next year. And there is a quest for efficiency: digitisation (leading to a more open, engaged public service), shared backoffice services and joint purchasing. Add privatisation of some commercial activities. Stir in Sir Peter Gluckman’s push for more use of scientific evidence in social policy. Add the application of actuarial assessment of future costs of inaction to calculate the return on early investment. And more stringent lawmaking rules. It’s big and ambitious, perhaps National’s biggest second-term project. M Colin James is New Zealand’s leading political commentator and NZ Management ’s regular political columnist. ColinJames@synapsis.co.nz

Bob Edlin economics M

A peek in the CPI basket

conomic and political commentators paid plenty of attention to the credit rating downgrades announced by Fitch and Standard and Poor’s late in September. The implications for interest rates and New Zealand’s ability to borrow were among their obvious concerns and politicians of all stripes argued about who should cop the blame. Prime Minister John Key put his credibility rating to the test, too, with claims about what Standard and Poor’s thought of Labour’s economic policies. Some technical stuff announced by Statistics New Zealand on 10 October – not accorded the same big headlines – has implications for interest rates, also. It concerned the composition of the consumers price index; shifts in the index will tell Reserve Bank governor Alan Bollard every few weeks if he should lift the official cash rate, lower it, or leave it where it is. The announcement – by Statistics NZ prices manager Chris Pike – was that the department had completed a review of the goods and services in the CPI basket. The review also updated the relative importance of the contents of basket. It was scheduled to be implemented when the re-weighted CPI for the September quarter was announced on 25 October. Reviews of the CPI are undertaken every three years to ensure the basket remains relevant and up-to-date and that its contents reflect changes in household spending patterns. The new basket includes tablet computers, external computer hard drives, e-books, and flatbread. Unflued gas heaters, dictionaries and envelopes were discarded. Based on the Household Economic Survey (which covered about 3100 households to collect detailed information on spending habits)

Statistics NZ estimates that $23.55 of every $100 spent by households on goods and services in the CPI basket is spent on housing and household utilities (up from $22.75 in 2008, reflecting increased spending on rent and higher electricity prices) while food accounts for $18.79 (up from $17.83, reflecting a 14 percent rise in food prices over the past three years). Transport’s share eased from $16.18 to $15.12, helped by lower spending on cars.

his or her specific basket of goods and services, and its composition will change for that individual over time. Your personal inflation rate will depend on a slew of factors, such as whether you have children and how much you spend on health and insurance In recognition of this reality, Britain’s Office of National Statistics a few years ago introduced a “calculateyour-own-inflation” tool. It shows that many people’s personal inflation rate

The new CPI basket includes tablet computers, external computer hard drives, e-books, and flatbread. Dr Bollard is charged with using the official cash rate and monetary policy to deal with inflationary pressures. His decisions are intended to keep the general level of CPI inflation within a 1-3 percent target band. But Antony P Mueller, a professor of economics at the graduate business school of the University of Caxias-doSul in Brazil, reckons the monetary policy concept of inflation targeting suffers from a fundamental problem: a valid price index (he insists) does not exist. “There is no such a thing as a representative basket of goods and services,” he claims. The idea of inflation targeting was problematic when it was first applied in the more simple economy of the 1920s; “nowadays it is outright obsolete to establish an index that would be representative of the highly complex and diverse economy as it exists today”. His point is that each person has

– determined by how they spend their money – is higher than the national average. Professor Mueller has gone further, however, to say aggregates and averages such as the gross domestic product, productivity growth, or the many other economic indicators consulted by central bankers, economic forecasters and the financial press hide more than they reveal “and are often utterly misleading for decision-making and economic analysis”. Maybe. Dr Bollard is not likely to abandon them, however, if only because they are the best of a bad kit of tools. What the statisticians have just put into the revised CPI basket, accordingly, will have a raft of economic effects. M Bob Edlin is a leading economic commentator and NZ Management ’s regular economics columnist.

NOVember 2011

| management.co.nz | 17

M Leadership Reg Birchfield

Vote for trust

18 | management.co.nz | November 2011

Photo: thinkstockphotos.com

t’s election month. Politicians beckon. But before spending your precious decision-making time on any individual or ideological consideration, ask yourself one question: who do you trust and why? Trust, you see, is both the most critical and, sadly, most often neglected, component of effective leadership. A trustworthy politician or political party might seem, as it so often is, like an oxymoron, but we are in desperate need of leaders we can trust or who might at least make an honest attempt to honour the spirit of the word. Trust is, as it so often has been, in short global supply. Its scarcity is at the heart of our many worldly woes. Leadership writer Stephen Covey suggested in his book The Speed of Trust that the removal of trust can “destroy the most powerful government, the most successful business, the most thriving economy, the most influential leadership, the greatest friendship, the strongest character, and the deepest love”. Equally, if developed and leveraged, trust can create “unparalleled success and prosperity in every dimension of life”. For hardnosed organisational executives and political pragmatists inclined to dismiss trust as a “soft and elusive” quality that individuals might or might not have, Covey argued that trust is instead a “pragmatic, tangible and actionable asset” that can be created to achieve faster results. We are consistently exposed to the corrosive effects of corporate, political and financial scandals, terrorist threats and acts, office politics and broken relationships, but restoring trust is, said Covey, “vital to our personal and interpersonal well-being; it is the key leadership competency of the new global economy. Nothing is as fast as the speed of trust and, trust is something you can do something about.”

Confucius: “Without trust, we cannot stand.”

What is trust? Former General Electric chief executive Jack Welsh suggested: “You know it when you feel it.” Fair enough, but that probably works best in close encounter evaluations. Mostly trust means confidence. The opposite – distrust – is suspicion. We are confident about the integrity and abilities of those we trust, and suspicious of the same qualities and attributes of those we don’t. Unfortunately, Victoria University’s recent research into the attitudes of 6000 Kiwis on a raft of social issues showed that almost 70 percent of us distrust politicians. On the other hand, we don’t, at least not yet, suffer the political extremism of countries like the United States, where building trust or finding trustworthy individuals is currently complex in the extreme. And that’s important because building trust, an art we seldom work at and pay little mind to unless things go wrong, is globally and locally important. Trust is the cement needed to construct an answer to what Albert Einstein once called the “most important question” human beings can ask themselves: “Is the world a friendly or unfriendly place? The answer to that question determines whether they live their life building bridges or building walls,” he said. We need bridge builders. Political and organisational leaders should focus on building trust. Granted it takes time and can be undone in a

moment. Our short-term approach to all things political doesn’t help. But building a reservoir of trust is critical to effectively tackling and solving the complex matrix of economic and social problems confronting New Zealand. And because time is of the essence, the case for trust is even more compelling. Look at the lesson of the US. The “great American dream” has become the world’s worst nightmare. Its leaders find it increasingly difficult to build trust, because they have acted, and continue to act, in untrustworthy ways. With all that creative and innovative potential, the smartest nation on earth now looks to be the silliest. Its political leadership is deadlocked, its commercial and financial leadership reviled and it cannot employ or properly care for its people. “In God we trust” seems hardly adequate. There are many reasons for individuals to be distrustful of their leaders. But there is also evidence to show that trust can be built and re-built. Corporate leaders have shown the way many times. Think, for example, of the job Air New Zealand’s leaders have done since the airline jettisoned Brierley Investments. Or consider what happened in Northern Ireland once a degree of trust took shoot. Having persuaded individuals to trust them, leaders must then take the next most critical step and not abuse the gift. That can be the trickiest trick. Endorsement is not a licence. Finally, from a Financial Times editorial of some years ago: “Executives tempted to take shortcuts should remember the dictum of Confucius that good government needs weapons, food and trust. If the ruler cannot hold all three, he should give up weapons first and food next. Trust should be guarded to the end, because without trust, we cannot stand.” M Reg Birchfield is NZ Management ’s consulting editor and writer-at large. reg@rjmedia.co.nz

Alice Andrew i Laura Fayernan MANAGING SUSTAINABLY M

Share our vision for the future

Photo: thinkstockphotos.com

t’s great to be part of something. It’s even better to be involved with a group of likeminded people discussing the state of the world in 40 years’ time, looking at how we as individuals can make a difference, and developing a plan for practical action. The Vision 2050 future leaders’ project has provided the platform to do just that. As two of the 30 future leaders sharing the same vision of a sustainable future for our country and its diverse nation of people, what does this really mean to us? It’s about collaboration, shared values and a desire to succeed in achieving this common vision. What started as a mind-boggling, frustrating and at times, depressing conversation with a bunch of strangers, about what 2050 could look like for an isolated island at the bottom of the southern hemisphere... has culminated in a collective direction for a bright and prosperous future from 30 individuals passionate about the future of New Zealand and the significant opportunity presented to us as a whole. After research, workshops and homework (!) an enormous amount of trust has been built amongst the team, allowing for excitement and creativity to bubble amongst our peers. Learning of our country’s innovative and entrepreneurial nature, we’ve tapped into how New Zealand can realise, grasp hold of, and maximise this opportunity. We’ve (collectively) developed 12 pathways for New Zealand over the next 40 years, identifying risks, business opportunities and providing measures of success. All pathways, from cultural diversity to waste, end with a ‘positive imagination’ and in our view, a positive opportunity. Important aspects of our economy, unique to New Zealand (such as tourism) have been included after informed consideration, providing

a point of difference to the World Council’s vision, and ensuring we retain and embrace New Zealand’s inherent personality, strengths and values. These pathways, in mural format, will be the basis of a series of tools that the future leaders will develop for not only the business audience but to engage students, communities, politicians, and anyone who wants New Zealand to be a great place in 2050! With a desire for robust and relevant information, we’ve identified the need for useable tools to deliver practical action. Action is a priority for us – we’re a business minded and commercially savvy young team that isn’t content to provide ideas and positive imaginations to plan for the future that gets put on the shelf. We’re determined to get it out there, and from talking to tweeting we’re quite prepared to do it ourselves. There is much work to be done. We are always asking “what’s next?” (just ask our project manager). And what’s next is that we’re working

towards publishing the results of our findings in December. So how does this resonate with business? We’ve all heard the need for a paradigm shift for several years now and we think that shift is happening. Some of us will probably even say we’ve felt it! Business as usual cannot continue and it’s up to everyone to be part of it, from the products you buy in the supermarket, to the contracts you sign at work, conscious decisions are happening every day. The future is bright but the time is now. If you aren’t presented with the strong leadership you desire, be the inspiration for others. Our peers have inspired us. Enjoy the journey, but make it worthwhile. M Alice Andrew is a director of Andrew Stewart and Laura Fayernan is a sustainability adviser at Auckland Tourism, Events and Economic Development. Both are future leaders in the Vision 2050 programme.

November 2011

| management.co.nz | 19

M thought leader

Collaborate & cooperate to grow

xplaining what a cooperative is has become second nature to me during the past 12 months. Surprisingly, it seems many New Zealanders, particularly in the business world, have an antiquated view of just what these enterprises are. A simple definition is ‘an organisation owned by, and democratically operated for, the benefit of those using its services’. The earliest cooperatives appeared in Europe during the Industrial Revolution to protect the interests of less powerful members of society – workers, consumers, farmers and producers. And whilst these simple cooperatives are still growing in their thousands in the developing world, in more sophisticated economies like ours, cooperatives have evolved to encompass financial entities like credit unions and building societies, as well as purchasing and shared services cooperatives. This collaboration allows independent business owners to collectively enhance their purchasing power, lower costs and improve competitiveness. Historically, businesses have focused on finding a competitive edge by developing the latest product or service enhancement. But, technology now allows us to transfer information around the globe at light speed, meaning your time as market leader is often much shorter. So, the competitive edge may just have to be gained through other means. It sounds an oxymoron to say that collaboration can enhance your competitiveness, but I really believe it’s time that SMEs, in particular, collaborated more to grow their business on a greater scale. The proliferation of SMEs in New Zealand is the perfect breeding ground for collaborative arrangements, and it doesn’t necessarily require a radical transformation of your business model to officially form a cooperative. Cooperative arrangements can be informal or formal. On an informal level,

20 | management.co.nz | November 2011

Henry Lynch... “A cooperative arrangement should be the driving philosophy behind all good business.”

mutually beneficial collaborations really can work. It could be as simple as combining to achieve greater purchasing power, sharing resources like HR and training or market intelligence. By adopting a cooperative mentality, smaller businesses can drive their cost base down, become more cost effective and, as a result, grow their business. To thrive, we still need to be competitive and there’s obviously a fine line between cooperation and competition, but I think we can be competitive in a way that ensures we also benefit from collaboration. After all, a cooperative arrangement works on the fundamental basis of creating a winwin solution for everyone involved, which should be the driving philosophy behind all good business, especially those that are customer focused. More formal arrangements, such as trade associations, can provide a significant collaborative advantage to many industry groups. The New Zealand Association of Credit Unions (NZACU), for example, was established 50 years ago and serves our 21 member credit unions throughout New Zealand with worldwide links. Individually, credit unions operate as small to medium size businesses in their local communities, each with their own identity. Yet, collectively, under the NZACU

umbrella, they enjoy the synergies and scale that come from being part of a large member-owned cooperative. This approach has resulted in credit unions ranking amongst the country’s largest financial service providers (by financial transactions), with one of the largest ATM networks in New Zealand, outside the major banks. For us, the cooperative model really does work – each credit union remains independent, but at the same time, is able to reap the benefits of a larger business entity. Worldwide, cooperatives provide more than 100 million jobs. Here in New Zealand, together with mutuals, cooperatives are responsible for an estimated15 percent of our total GDP, meaning they play a significant role in our economy. The United Nations has designated 2012 as ‘International Year of Cooperatives’, recognising the economic and social contributions made by cooperatives in New Zealand and globally. The GFC and continuing economic uncertainty has reminded us all that there can be a price to pay for the unending quest for profits over customer and market wellbeing. True cooperatives are based on the values of self-help, self-responsibility, democracy and equity. In the tradition of their founders, cooperative members believe in the ethical values of honesty, openness and social responsibility. I’d challenge anyone to argue against basing a business model on such a fair and positive philosophy. I believe that understanding the worldwide impact of cooperatives and their context in our modern world is now more important than ever, as we recognise as a nation we are all going to have to work together for a better future – and a cooperative economy. M Henry Lynch is chief executive of the New Zealand Association of Credit Unions (NZACU). For further information on cooperatives see http://nz.coop/ or http://www.nzacu.org.nz/

BOOKCASE M

BLUEPRINT TO A BILLION: 7 Essentials to Achieve Exponential Growth By David G Thomson • Wiley • RRP $46.99

How to get New Zealand companies to grow is an age-old conundrum for our politicians and economic advisors. Our business leaders are equally baffled by how to achieve it, with just one or two notable exceptions – Fonterra being one of them. David G Thomson, author of the bestseller Blueprint for a Billion, visited New Zealand recently and thinks he knows how business leaders might up their success rate. “By reading my latest book,” he told this reviewer. So I have. There are, according to his latest book, seven essential super-growth drivers. And they will become increasingly important, not just to enterprises of the future, but to nations in general. Thomson findings are based on his study of what he calls recessionproof businesses – like Apple, Microsoft,

THESIS SURVIVOR STORIES: Practical advice on getting through your PhD or Masters thesis By Marilyn Waring and Kate Kearins • AUT Media • RRP $39.99

If you have ever dreamed of “going back and doing a doctorate” this just may be the book for you. The authors – possibly better described as collators – have put together the personal experiences of 20 successful thesis writers in 21 (one writer gets two bites of the cherry) very readable and entertaining summaries of their individual trials, tribulations and ultimate triumphs.

Google and a number of other obvious and not-soobvious US companies. In addition to spelling out what he thinks companies need to do to grow dramatically, he argues that governments should create the environment in which growth businesses thrive. Too often they waste time, effort, intellect and other exhausting but ultimately pointless activities, with small businesses and starting up numerous enterprise incubators. The book is an actionable blueprint for companies focused on growth, but also a suggestion that government change their enterprise boosting policies and priorities. Economic turbulence creates change. Exceptional companies, according to Thomson, profit from varied economic conditions. Now is the time, therefore, to separate the growers from the grafters and for growth focused organisations to differentiate themselves from their competitors. The book is 200 pages short. It

includes an explanation of what defines and underpins growth, what the author’s seven essentials for high growth are, where they come from and how to action and implement them. Finally, Thomson identifies his three essential leadership pillars which are about being purpose driven, enterprising and service focused. The core of Thomson’s argument for growth is that only super growthfocused companies can deliver significant national economic advantage. He defines growth as having simple, fundamental and essential characteristics: achieving compounding customer demand as measured by revenue growth. This approach allows companies to grow revenue every year which is the “number one objective” of all for-profit management teams and the one most difficult to achieve. The book is easy to read and for many, will be worth the effort. – Reg Birchfield

The personal flavour makes the book an easy read and very much more than a mere style guide to thesis writing, although the authors do include a structured advice summary as a postscript. Some of the advice given seems to be rather self-evident for our nation’s academic elite – eg, eating healthily and exercising – but possibly this is necessary advice. The authors should know – they are both university professors. They could also be expected to be familiar with academic bureaucracy and it is somewhat surprising that dealing with this bureaucracy is a recurrent theme in many of the contributions.

Prudently, the names of the “offenders” are not included. Former politician George Gair flies the flag for the (very) senior student, but the gender balance of the contributors is definitely female oriented with most of the research being in the social sciences. It would have been interesting to have included more contributions from other disciplines such as medicine. Do these candidates have the same issues? In summary, the book will necessarily appeal to only a narrow readership but it would be surprising if an aspiring thesis writer did not benefit from the collective advice within. – Roger Garrett November 2011

| management.co.nz | 21

Cover story COVER STORY

Super sizing Auckland

NZ’s biggest corporate transformation

The size of the task is enormous, the scrutiny intense – so, one year in, how does Auckland Council CEO Doug McKay rate his progress on the biggest corporate transformation in New Zealand’s history? Vicki Jayne asks. 24 | management.co.nz | November 2011

McCully galloping in on his Central Government charger to apparently rescue RWC fortunes from the inadequacies of Auckland’s administration – does Doug McKay regret his decision to be the new Super City’s first CEO? “No, not at all. It’s been tough as you can imagine. Any change on this scale would be – it is the largest corporate

organisational transformation in New Zealand’s history.” There is no business equivalent – though one commentator suggested the task would be as complex as trying to merge Fonterra with Telecom. For sheer size, it’s daunting: 10,500 people (at the start), eight organisations, no less than 3500 different IT systems, 4000 parks, 72 locations, $30 November 2011

Photo: Jeff Brass

t was never going to be an easy ask. Create a streamlined super city out of eight reluctant fiefdoms, give it vision and direction, ensure operational stability, save money while you’re at it – and don’t forget this RWC thing which just happens to fall in the middle of the process… Important to get that bit right. So one year in – and with Murray

| management.co.nz | 25

Cover story

billion plus on the balance sheet… Then there are the tasks that had to be accomplished in a tenure less than two years long. McKay ticks them off. Moving to a single rating system based on a common valuation; establishing a new democratic structure; setting up seven new companies – six of which could earn a place in New Zealand’s top 30 in terms of size; putting in place 50+ directors, seven new chairs, seven chief executives. “Plus we’ve had to maintain relatively seamless delivery of Council services and functions, deliver the first annual plan with combined budget and rate decisions; deliver the Auckland Plan, our 30-year strategy document; and now we’re in the process of delivering our 10-year financial plan. And on top of that we’ve had a whole lot of operational stuff to do…” The statistical enormity of it all rolls easily off McKay’s tongue. This is a man who evidently relishes a challenge. It is, he owns, central to his management style. 26 | management.co.nz | November 2011

“I do have a huge capacity for work. I’ve always been very fit and energised by exciting new challenges – things we don’t know the answers to. That’s what gets me out of bed in the morning and excited about coming to work. “I try to imbue a sense of energy, optimism and confidence in the organisation through my example and think people are responding to that.” It’s not a job he had envisaged doing. His background is in business including senior executive roles with Lion Nathan, Carter Holt Harvey and Goodman Fielder, a five-year stint heading Sealord and two at the helm of Independent Liquor. He was working in private equity when approached about his current role and took it on not only because he saw it as “a great privilege” but also he felt he had the requisite skills. “A background of running large organisations with a focus on change and helping business through very challenging situations was appropriate for this job. So

I did feel I had the experience and skills to do it.” Moving from private to public sector work was less of a leap than people might think, he says. “Business has a lot of stakeholders to deal with as well and a lot of politics. It comes in a slightly different package but many of the principles are the same. Also I’m not here to become an expert at Local Government politics – I’m here to do a very specific job and I’m here because of what I can bring to that task so I’m very focused on that.” A first priority was to attract a top executive team. One of the benefits of a large organisation is that it is of more interest career wise to top performers and that’s paid off in the quality of his senior executives, says McKay. Once he’s got the team he wants, his style is to let them run. “I’m not very hands on. I put a lot of faith and trust in my team. And we’ve got a

Auckland Council CEO Doug Mckay.

good mix here – from Local Government, Central Government and from private enterprise. The calibre of people we’ve been able to bring in is a big part of the reason why we’ve enjoyed the progress we have so far.” Organisational culture has also been a priority with research commissioned early on to establish which values staff felt best represented the new organisation. These were identified as: pride, accountability, respect, service, teamwork and innovation. “The catchphrase is a ‘can-do’ rather than a ‘can’t do’ culture,” says McKay. “The process we went through was about building on the things they really valued in past cultures but also bringing in some of the attributes of high performance cultures I was aware of through business experience. We ended up with a very well-defined set of values to which we aspire and that is something we will start to focus on more deliberately from 2012 on.” The time required to bed in organi-

sational change is something McKay has talked over with people like Fonterra’s former head Andrew Ferrier and he is understandably wary that community expectations not be set too high. “There’s a huge sense of opportunity and that’s appropriate. But in the short term it is so important not to get ahead of yourself and lose control of the organisation. All this changing and merging has to be carefully managed because if one thing goes horribly wrong then it can flow through to all the rest of the services that Council offers.” He says one of the job’s major challenges has been maintaining operational stability through all the changes. “We were never going to have credibility talking about the future unless we could deliver the present. So ensuring basic services and functions were maintained was our number one goal in the first period – and generally we have achieved that. I know we are not falling behind legacy council

measures – and in many cases we are starting to exceed what they were doing in terms of performance.” Being able to identify best practice from the eight legacy councils and rolling that out across the whole organisation has contributed to improved performance, says McKay. He can also notch up a win on the saving money front – knocking $81 million off costs and consequently delivering a rate increase that at 3.9 percent came in well under the expected legacy council rate rise of 9.3 percent. The savings, he says, come from a head count 2000 lower, reduced procurement costs due to greater purchasing clout, “significant” efficiency and productivity savings, and better prioritised and scheduled capex projects. McKay rates his second biggest challenge as delivering the new democratic structure. “We’re talking 170 politicians – Parliament has only 122 – and 21 Local Boards, November 2011

| management.co.nz | 27

Photos: Jan-Michael David

Cover story

the Mayor with his own budget and resources. This is all new and figuring out who does what in the new system, where the boundaries for decision making are, where budgets will lie – all that is a very complex task that we are still working on and will be for some years yet.” Delivering the new planning regime is another biggie – and it’s happening at pace. The draft Auckland Plan – a 30-year strategic document to “make Auckland the world’s most liveable city by 2040” – was released in September with submissions closing late October. Alongside this 500-page tome were the Draft Economic Development Strategy, Draft Waterfront Plan and Draft City Centre Masterplan. If that’s not enough to get collective planning heads spinning, then there’s the “Unitary Plan” which will replace all existing district and regional plans providing the structural bones for implementing the City’s strategic vision. 28 | management.co.nz | November 2011

There’s little doubt that the council’s already shrunken human resources are being stretched to their limits to get this work done on time and within budget. Whether the outcomes will withstand legal scrutiny is open to question – whether the timeframe is even realistic is another. The financial and unitary plans do have to be consistent with and support the over-arching strategic vision contained in the Auckland Plan – but take years to evolve through actual use, practice and testing in the Courts, says McKay. “However, we do have a clear idea of what we would like to achieve as a council in the unitary plan and that is less rule based, less prescriptive, more principlebased with more opportunity for dialogue and negotiation. We can get to a level of unitary plan completion by June 30 but then you do need time for these things to evolve through practice.” As to the overall timeframe, McKay is upbeat.

“It’s all gone well. I don’t think you can do change like this slowly. I think the pressure of an aggressive timetable is actually a plus in change management. Otherwise it gives the organisation too long to second-think things and worry. You just need to move on, get the next box ticked and keep going. You do sort things out on the run.” The Rugby World Cup – and the chaos of opening night when larger than expected crowds dramatically exposed holes in Auckland’s infrastructure – perhaps offers some examples. The decision to open up extra space to accommodate NRL Warriors’ supporters – quickly made during the RWC review session on the Sunday after they qualified proves size is no impediment to speed, notes McKay. “This new council is not a big cumbersome bureaucracy that some might like to assume given its size and scale. We’re starting to see how this thing might really work well.”

As to whether Auckland “dropped the ball” on its preparation – McKay believes the sheer numbers would have put any planning scenario under serious pressure and highlight the need for the sort of massive infrastructure investment outlined in the Auckland Plan. A one-way station like Britomart just doesn’t meet big city transport needs. “You are always going to get learnings about how to do things better with something of this scale. We want to be a major events city so we have to get really good about running them – so what we’ve learned will be implemented in terms of future events and will make us stronger going forward.” The wider council had a hand in 76 major projects related to the RWC and most of the feedback has been positive, adds McKay. “The reality is that this would have been an enormous undertaking in normal circumstances, let alone when going through the change and

transformation that we are in Auckland.” And, if you put aside “a few high profile grandstanding events”, he says with a slight smile, the working relationship with Central Government at both ministerial and official levels has been “nothing but positive since we started”. He’s equally sanguine about his relationship with Mayor Len Brown. The two leaders may not have chosen each other but McKay is clear he believes that Len Brown is just the right person for the job. “I think he is doing an incredible job. I have never seen someone with so much energy, enthusiasm and passion for Auckland. It just oozes from every pore.” While Brown’s legacy will be judged by the people of Auckland, McKay’s role, its brief tenure determined by the legislation under which the Super City was established, is not so prey to public sentiment. Change managers often move on before the chaos they leave can catch up

with them. So what would McKay like his own legacy to be? “Well, not that. There too many checks and balances for me to be able to do silly things and make short-term decisions at the expense of long-term outcomes. And I just don’t work like that. I’m going to live the rest of my days in this city and I want it to be a huge success. So leaving behind a mess is not on the agenda. “What I hope will be my legacy is a very smooth and effective transition so the next phase is set up to really capitalise on what this transformation is all about – which is primarily around better decision making and better engagement with the local community. “I think we are establishing the infrastructure and capability and systems to really make that eminently possible.” M Vicki Jayne, a former editor of NZ Management, is a freelance business journalist. vjayne@xtra.co.nz

November 2011

| management.co.nz | 29

TOP 200 THINKING

JOHN KEY

PRIME MINISTER OF NEW ZEALAND

AS PRIME MINISTER I’VE HAD THE PRIVILEGE of visiting many businesses throughout New Zealand. I’ve chatted to business leaders about the issues they’re facing, the progress they’re making, and the opportunities that lie ahead. I’m constantly impressed by the talent on display. Everywhere I go I meet outstanding entrepreneurs, learn about world-class products and services, and see great examples of business leadership. NEW ZEALAND’S FUTURE SUCCESS ultimately relies on the success of these businesses up and down the country. They are creating the jobs, incomes, and return on investment that drives our economy and makes New Zealand such a great place to live. THE GOVERNMENT ALSO HAS AN IMPORTANT ROLE TO PLAY. It’s the Government’s job to have a plan to navigate through the challenging global economic situation and create the right conditions for businesses to operate. We need to make sure New Zealand remains an attractive place to live, work, and raise a family. THAT’S EXACTLY WHAT THIS GOVERNMENT HAS BEEN DOING. I’m proud to lead a Government that is doing the right thing by New Zealanders. We have a plan to build the foundations for a stronger economy, and we’ve been implementing that plan since we came into office. IN THESE TIMES OF GLOBAL UNCERTAINTY, New Zealand is relatively well placed compared to many other developed economies. WE ARE NOT IMMUNE FROM A SLOWDOWN IN GROWTH in the United States and Europe. But we’re well positioned to benefit from our strong links to Asia, which is continuing to experience faster growth than the rest of the world. THIS POSITIVE OUTLOOK IS UNDERPINNED BY STRONG COMMODITY PRICES, strong links with our largest trading partner Australia, increased rates of savings, and stimulus provided by rebuilding after the Canterbury earthquakes and our earlier stimulus package.

WHILE WE FACE THE SAME CHALLENGES AS OTHER TRADING NATIONS, our biggest constraint is organising our economy effectively to meet increasing demand for our food products from middle-class Asian consumers. THAT’S WHY NEW ZEALAND IS FOCUSED ON IMPLEMENTING A PLAN that involves policies to increase productivity. For example, this Government has cut personal and business taxes at a time when many countries are increasing taxes. We’ve overhauled regulation to reduce costs to businesses and consumers. We’ve spent billions improving infrastructure like our road, rail and broadband networks – all of which support our export sector. ANOTHER POSITIVE FACTOR IS OUR SOUND BANKING AND FINANCIAL SECTOR and the sound position of our government finances. We’ve set a path back to surplus in three years and our government debt is forecast to peak below 30 percent of GDP. Since the end of the recession in 2009, our economy has grown steadily and unemployment has started coming down from a peak of about seven percent. SO, RELATIVE TO MANY OTHER COUNTRIES, NEW ZEALAND REMAINS WELL PLACED. But we’re taking nothing for granted and we’re continuing to work hard on our plan to reduce debt and increase productivity in our economy. THE ACTION THIS GOVERNMENT HAS TAKEN to get the country back into surplus as fast as possible – and to build the foundations for future growth – is not only the right course of action. It’s the only sensible course of action available to us. I’M CONFIDENT IN THIS GOVERNMENT’S ABILITY TO NAVIGATE through the choices ahead with the best interests of New Zealanders in mind. And I’m confident in the ability of our business community to help us build a brighter future for New Zealanders. Together we have a chance to build a platform for future growth. If we get this right, the opportunities for our country are endless.

Face to face

David G Thomson

The billion-dollar man Some business truths are immutable. One such truth, according to American management guru and growth champion David G Thomson, is that sales, more than any other single factor, define growth businesses. And growth businesses are good for us. America’s growth guru was in Auckland recently and talked with Reg Birchfield.

t may be stating the obvious, but companies need to be reminded that customers determine a company’s success. “It’s simple really,” says Thomson. “Companies must grow their sales and revenue to be a growth company.” Thomson didn’t originally think this personal discovery was a “big” insight. But after travelling the world for the past six years and presenting his thoughts on what underpins growth to 25,000 listeners, he’s now considered a global expert on how businesses grow. And he thinks the world’s successful growth companies – like Apple, Microsoft, Starbucks and the like – are “defined first and foremost by sales”. Super sales of Thomson’s 2006 book, Blueprint to a billion: Seven essentials to achieve exponential growth,

34 | management.co.nz | November 2011

undoubtedly defined the growth of his reputational success. He followed it up last year with another good seller, Mastering the 7 essentials of high growth companies. The former McKinsey & Company consultant is now the founder and chairman of The Blueprint Growth Institute, a specialised management-consulting firm focused on helping companies develop business growth strategies. He was in New Zealand to speak at an internal staff conference for boutique telco and media business Kordia. Managers, says Thomson, invariably understand his sales and growth message. Boards often don’t, mainly because they are stacked with the wrong mix of “essential experts”. Boards should, he says, include customers and key alliance partners.

Growth’s important Why is exponential growth important? It’s all about what Thomson calls “the law of disproportionate impact”. Only four percent, or 387, of the 11,000 plus companies that have gone public since 1980 reached $1 billion in revenue. Those star, or what Thomson calls blueprint businesses, account for 63 percent of the employment and two thirds of the market value and 72 percent of the taxes paid of all those new public companies. “That’s why we must improve our hit rate and get more companies into up there,” he adds. “Growth companies are great places to work and invest in. They also have a disproportionate positive impact on government tax revenue. For economies to grow, countries need more growth companies. And investors need growth

David G Thomson... “Seven essentials are both common and critical to successful growth companies.”

companies to provide long-term superior returns to fund their retirement.” The world, according to Thomson, is awash with entrepreneurs and small businesses. By extrapolation, government business promotion policies and schemes are misdirected. “Americans believe that small businesses create the most jobs. But one $1 billion business is equal to 1000 small businesses when it comes to creating jobs,” he says. New Zealand should, therefore, be considering how to turn many of its small companies into one or two more billion-dollar businesses. “My thesis is simple. The world is saturated with entrepreneurs and incubators. Incubators don’t solve employment problems and won’t help the world economy. What makes a difference to communities and economics is finding ways to grow business revenues.”

In Thomson’s opinion, development programmes should be directed toward enhancing business success rates, rather than setting up more incubators. The odds of turning a $1-billion idea into a $1-billion revenue business are, he said, “worse than the chances of hitting a holein-one in a round of golf”. Beating the odds In America the odds of getting an idea funded are 50:1 and about 20:1 to get a funded business to go public. It is another 20:1 in odds to turn a public company into a $1-billion enterprise. Thomson has no ideas what the odds are for private and family companies, but chances are the statistics are similar or worse. According to Thomson, countries and companies he talks to are rethinking their business development

strategies. Effective leaders view their economies and their businesses as systems. “Systems thinkers look ahead,” says Thomson. “Governments need strategic imperatives that fire on every cylinder. Too often they think about one thing only. In the US it’s about tax cuts or infrastructure spending. They need to think about opening markets.” Thomson believes health services, energy, minerals, cloud computing, social media and mobile device convergence offer the best opportunities on which to build growth companies. Agribusiness looks good for New Zealand – witness Fonterra. Five mega trends will, he says, dominate growth economies. They are: • Materials – mining products but also in future, water; November 2011 | management.co.nz | 35

Face to face

• Energy – oil and gas exploration and clean energy; • Technology and communication convergence – cloud computing and mobile products; • Food staples – the need for which will not disappear; • Retailing – concepts and models of which are rapidly changing. Thomson’s research uncovered the seven essentials he believes are both common and critical to successful growth companies. And the extent to which businesses adopt some or all of these essentials defines the growth rates they achieve. “A car engine provides a good analogy,” he said. “To make an engine run smoothly and with maximum power, a spark is required in every cylinder.”

“growth” companies Thomson studied, but the CEO-founder didn’t do it all. “The founders needed to transition to the inside-outside leadership pair to execute all seven essentials simultaneously. Before Microsoft’s Bill Gates/Steve Ballmer duo of the 1990s, the company reached an inflection point in 1983,” he told The New York Times in 2006. “It outgrew its small-time style faster than Gates could handle it. Gates tried to take charge of five product lines, but he couldn’t pay enough attention to customers’ needs.” Companies don’t, however, fail because one factor is missing. “Cars can run on five rather than six cylinders,” he said. “But when three or four cylinders don’t fire, the car stalls.” Poor governance can have a profound effect but it is, he

To fix the economy, governments must lift the success rate of growth businesses. His seven essentials include creating and sustaining a breakthrough value proposition; exploiting high-growth market segments; securing marquee customers early to fuel exponential revenue growth; building alliances with larger companies to help break into new markets; mastering the exponential returns equation (fast and sustained revenue growth, and high return on invested capital); building what he calls an “inside-outside” management team and including customers, partners and a growth-focused chief executive on the board. The first three of these essentials are core. No business will grow without them. His inside-outside approach to leadership is, however, also critical. “One [leader] needs to focus on operations and innovations while the other faces outside, focusing on customers, alliances and the community,” says Thomson. “The principle of inside-outside leadership should be applied throughout the organisation.” Founders played a critical role in the 36 | management.co.nz | November 2011

said, usually just symptomatic of failed investor policies, failed leadership or a company without a good value proposition such that no one of any value wants to join the board. Board failure The most common problem with governance is, in his opinion, board failure to recognise the strategic imperatives of what is required to grow a business. “Growing companies fire on all cylinders. But is takes a systems approach to accomplish that. Boards fail when they don’t take a systems approach and neglect some aspects of an exponential growth pattern. Talking about linear, erratic or low growth means they aren’t thinking of the seven essentials in the same way.” Thinking in terms of $1 billion might, Thomson concedes, take some mind expanding for New Zealand companies. But, he says, if a company can grow at 30 percent and reach $50 million in revenue it should be able to get to a billion in 10

years. The rate slows as companies reach “escape velocity” but there is, he says, no reason why New Zealand businesses growing at this rate can’t aspire to become billion-dollar companies given the global market and the products and services we have to offer. Once companies reach escape velocity by firing on all seven essentials, “self correction” kicks in. And that’s about acting quickly to set things right when they start going wrong. “That’s when good governance comes in to play,” he adds. “Boards should have the wisdom to know what decisions must be made.” Growth, in Thomson’s lexicon, is not a dirty word. “Growth is defined by our experiences. When politicians and economists, for example, think about growth they think gross domestic product (GDP). In turn they think pollution, consuming resources, and government debt.” Growth should be redefined, he says. Growth companies, with strong and rapid revenue flows, don’t have long-term debt. Apple for instance, has no debt. “My research showed that 52 percent of America’s revenue growth companies had no long-term debt. Cutting the interest rate means nothing to these businesses. They grow independently of the financial market. “Growth companies don’t waste resources because they have efficient supply chains,” he adds. “And these companies change our lives for the good every day. That’s why governments need to focus on helping the four percent of blueprint companies rather than the plethora of small to medium business that will never grow. The ripple effect of a change like that would be enormous in terms of products, jobs and financial efficiency. “To fix the economy, governments must lift the success rate of growth businesses. They must find and support those with the greatest potential, and take the insights they provide and apply them across the board, rather than opt for the lowest common denominator. It is a different problem-solving approach. Revenue growth is about sales, and sales drives employment.” M

Paul Buetow | Infrastructure

David Shillson | Commercial

Grant Hewison | Local Government

Matthew Ockleston Property

Greg Milner-White Resource Management

Working in this complex and highly political sector takes expert knowledge. Local Government is a big player in the New Zealand market, spending around $6.7 billion each year. Working with local government can be very rewarding but it takes skilled navigation to avoid the pitfalls. Kensington Swan acts for many local authorities in New Zealand, and also advise major corporates with large projects underway for councils. If you are looking to do business in this sector, take expert advice from lawyers who understand the political and commercial complexities of working with councils.

AU C K L A N D

W E L L I N G TO N

ABU DHAB I

K E N S I N G TO N S WA N . C OM

Impact asia

Green dominance Will Asia save the planet? Asia is carving out for itself an independent and very pragmatic sphere of influence in international environmental regulation and trade in renewable technologies. What does that mean for New Zealand? By Ruth Le Pla.

hen the Rena container ship foundered off the Bay of Plenty coast last month one of my colleagues told me he felt violated as a New Zealander. The globs of oil washing up on Motiti Island, Papamoa and Mt Maunganui beaches struck raw nerves of concern for our fragile environment. They also tapped into a groundswell of angst about the validity of New Zealand’s clean green claims. Such concerns have been bubbling away for some time now.

38 | management.co.nz | November 2011

Two years ago when NZTE published its ‘clean economy vision for NZ in 2025’, it noted that our pre-established ‘pure’ reputation rapidly needed authenticating to avoid reputation risk. Just seven weeks before the Rena hit Astrolabe Reef, and a 12-hour plane flight from New Zealand’s shores, delegates from round the world had gathered in Seoul to examine the emergence of an independent and very pragmatic Asian sphere of influence in international environmental regulation and trade in renewable technologies.

The Harvard Project on Asian and International Relations (HPAIR) in the Republic of Korea posited that Asia is carving out for itself a leadership role in such matters. Yet while west and east may increasingly share a common lexicon of concern for the environment, many people suggest the underlying drivers are very different. Here’s a small, but telling, example. When NZTE did a study of Tesco’s buying decisions on its home turf in Europe, sustainable practices ranked way high. NZTE GM strategy Grant

Photo: New Zealand Defence Force Photo: Maritime New Zealand

Photo: Maritime New Zealand

Oil washes up on the Tauranga shoreline.

McPherson says in that part of the world, green demands translate into basic business-as-usual prerequisites. Not so in Tesco China where the same survey showed sustainability as a mere blip on the chart. McPherson suggests that in Europe consumers demand smarter green practices while in Asia, by and large, it’s the governments that are driving the push for a cleaner environment. Here in New Zealand, a group of independent business leaders has become so concerned about our country’s future role in a more green-

conscious world that in July this year they launched the Pure Advantage campaign. They aim to address what they see as the growing gap between our nation’s clean green marketing and what they call its “very different reality”. Pure Advantage campaign manager Duncan Stewart says environmental debate in Asia is not framed by global warming and climate change. “It’s driven by the need to reduce pollution and environmental degradation, as both are significant drags on GDP growth,” he says. “Equally as

important for many, it’s driven by the desire for energy security.” For some time, many Asian governments have pursued the line that they’ll lift their economies first before sorting out their environmental problems. Now in many parts of Asia this approach is morphing into policies that clearly harness environmental improvement to simultaneous economic growth. At a recent Asia-Europe Meeting (ASEM) in Hanoi, Vietnam, senior Asian and European officials, drawn from ASEM’s 46 member countries, the European Commission and the ASEAN November 2011 | management.co.nz | 39

Photos: Ruth Le Pla

Impact asia

Secretariat, met to work out ways to shift from a ‘grow first, clean up later’ approach toward a greener development path. Over in Korea, Han Seung-soo, chair of the international Global Green Growth Institute, has described “green growth” as a new revolutionary development paradigm that sustains economic growth while at the same time ensuring climatic and environmental sustainability. In his foreword to the book Green Growth in Motion: Sharing Korea’s experience, he says green growth “focuses 40 | management.co.nz | November 2011

on addressing the root causes of these challenges while ensuring the creation of the necessary channels for resource distribution and access to basic commodities for the impoverished. “Under this new paradigm, new ideas, transformational innovations and state-of-the art technology will become the major drivers of growth.” Grant Frear, consulting partner and head of innovation at Deloitte NZ, identifies three converging trends that are helping drive governments to rethink their policies. First, he says, the growing role and

importance of social media globally (think Arab Spring and the Occupy Wall Street movement) make the old “do it dirty, get rich quick and clean up later” increasingly difficult. Social media equates to greater transparency. Second, there’s simply a greater awareness of green issues. Finally, we’ve reached some tipping points in science that are opening up new possibilities. The merging of green technologies and IT, for example, has led to the ability to create smart cities, smart grids, smart meters and smart appliances. Connected devices and

connected information allow us to monitor use of power, for example, and rethink how we use resources. A short walk from the New Zealand Embassy in Seoul, Young Soogil points out of his office window to the presidential ‘Blue House’ in the distance. As chairman of the Presidential Committee on Green Growth he reports direct to Korea’s President Lee Myungbak on the country’s national agenda to promote low-carbon green growth. Young jokes that his office is close enough for his boss to see if he’s working or not.

The Republic of Korea is seen by many as a prime exemplar of a country whose government is determined to get to grips with green growth. All of which adds a certain irony to claims by sources back in New Zealand that Korea’s overtures to Kiwis to form a ‘dream team’ combo have largely fallen on deaf ears. These people say we’ve allowed to slip through our fingers a dream opportunity to link our innovative thinking and national green brand with Korea’s formidable industrial capacity, access to capital and market research capabilities. Just round the corner from Young

Soogil’s office, families with young children traipse through the Experience Green Growth Hall. Hydrogen fuel-cell cars, a model of the Jeju city smart grid, and a polar bear on a bicycle sheet home the government’s key message that green growth will eco-ise their homes, offices, transport and cities. The green growth policy that Young Soogil is bedding down is Korea’s national strategy to become the world’s seventh ranking green power by 2020 and its fifth by 2050. No-one’s pretending there’s anything but a long way to go. Korea has November 2011 | management.co.nz | 41

Impact asia

been ranked as the ninth largest emitter of greenhouse gases in the world and first among OECD member nations for its rate of emissions. Still, says Young, investment in green, high-efficiency technologies is booming. Total investment in renewables and new energy innovation – such as fuel cells and smart grids – has increased by 75 percent annually over the past three years. “The number of businesses focusing on those areas had doubled in the same period,” he says. “Employment in those sectors has more than quadrupled. And total domestic sales and exports in those areas have increased by six or seven times.”

nuclear slowdown since Japan’s Fukushima disaster in March this year, both India and China continue to boost their nuclear power capacity. The International Atomic Energy Agency (IAEA) says both countries expect to have 60,000 megawatts of capacity apiece by 2030 out of a predicted total world capacity of between 501 and 746 gigawatts. A recent article in the China Economic Review notes India, China, Japan, the Republic of Korea and Pakistan still remain strongly invested in nuclear expansion. “India has planned 17 new reactors and proposed a total of nearly 40, while China is constructing 28 reactors and finalising plans for an additional 12.”

Perhaps one day, pragmatism and idealism may merge. The solar cells market provides a good example of the wider Asian region’s growing sphere of influence in clean energy. In the past decade, China has shot from a standing start to now producing nearly half of total global supply. Such stats prompt suggestions that China’s “green” leadership position may currently rest more on its ability to manufacture solutions to environmental concerns rather than on any inclination to rally and lead debate on environmental issues. Perhaps one day, pragmatism and idealism may merge. Young Soogil cites one prominent market observer who wrote that sooner or later China will be ahead of the US in terms of contributing to global climate change negotiations. “Why would China do that? Because China believes it’s in its own interest to do so,” he says. For further evidence of Asian pragmatism, look no further than nuclear energy. In sharp contrast to the world 42 | management.co.nz | November 2011

Korea may be accelerating its industrialisation of clean and renewable energy but it’s still talking small percentages. Two years ago, renewable energy supply use lingered at just 2.7 percent of totals. The green growth plan aims to lift this to 3.78 percent by 2013 and reckons it should hit 6.08 percent by 2020. Young Soogil says Korea will meet its economic targets by relying on nuclear power which now accounts for about one third of the country’s power generation and which will rise to account for around 60 percent of it by 2030. “We don’t have any other viable option,” he says. So how effectively is New Zealand taking up green growth opportunities in Asia and what role can we realistically expect to play in the market? Back in New Zealand our own Green Growth Advisory Board published its discussion paper on green growth issues earlier this year. Its three core areas of interest were how to bet-

ter leverage our “clean, green” brand, how to use technology and innovation to promote greener growth, and how to help SMEs transition to a lower-carbon economy. NZTE is working with a raft of clean technology companies including Flotech, Lanzatech, FloDry, CPG Waste Solutions and DieselGas, which are already active in Asia. Plenty more are at an earlier market entry stage. Pure Advantage’s Duncan Stewart says there is significant opportunity for New Zealand across the wider Asia region. He highlights opportunities for the delivery of efficient agricultural methods, sustainable forestry and water usage. “An estimated 50 percent of all the water used for agriculture in China never makes it onto the crops it was intended for,” he says. Then there’s clean food production, smart energy meters and geothermal technology. “The list,” he says, “is much broader than just clean technology.” Still, Pure Advantage frets that there is not enough coordinated thinking and planning in New Zealand around what those opportunities are, and how New Zealand is best placed to take advantage of them. “Pure Advantage believes there is the need for a New Zealand-wide strategy to focus all constituents on what the game-changing opportunities are for our country,” he says. “This of course requires the buyin, support and coordination of many stakeholders including corporates, iwi, local government, political parties and, most importantly, the people of New Zealand. “And it will all need to be supplemented by regulatory and fiscal policy changes designed to encourage and focus on green growth.” M Ruth Le Pla travelled to the Republic of Korea and attended the Harvard Project on Asian and International Relations with the help of an Asia New Zealand Foundation Media Advisory Grant.

Supporting the leaders of tomorrow NZIM Eagle Technology Young Executive of the Year

Finalists

2011

NORTHERN_left Hamish McBeath General Manager Pacific Coilcoaters - Subsidiary of Fletcher Building SOUTHERN_right Matthew Carter General Manager Otago Polytechnic - HR & Student Services

Auckland: 09 639 0600 Wellington: 04 802 1400 www.eagle.co.nz

November 2011

Professional Development

Guide Education & Professional Development programmes 44 | management.co.nz | November 2011

It’s all about

team work Hayley Barnett looks at how business and academia can work together more effectively. Both academics and business leaders say maintaining an equal partnership is the key to New Zealand’s long-term success.

uilding a strong relationship between business and academia isn’t an easy task, with both academics and business leaders saying they need to find better ways of bridging the gap. The need for post-graduate business courses to stay up-to-date and relevant with real world requirements is a constant challenge, but academics say it swings both ways. They believe businesses need to focus on applying research-based information to their practices if we are to see any real progress. University of Auckland business school professor Brad Jackson, who is the Fletcher Building Education Trust Chair in Leadership, says the two can learn from each other, but business leaders need to recognise that universities play a vital role in everyday business. “The business people I’ve interacted with have this image of what a university is about and are sometimes reluctant to engage with us because they assume it is irrelevant, that it’s detached and archaic. What I always try to say is give us a chance. At least

give us an audience, and tell us what your issues are.” Jackson says a key factor in bridging the gap is developing a stronger dialogue which needs to happen on a regular basis. “It should be a cyclical process,” says Jackson. “It’s not a question of us coming down from the mountain with our research and saying this is the way you should do it – you’d get laughed out of town. What we can bring to the table is that we are plugged into a whole range of discussions about business issues around the world that managers might not be as privy to. We have a sense of the issues that are emerging and possible solutions and we can relate that to the New Zealand context.” He says the majority of business leaders who meet and share their knowledge with students often walk away feeling like they’ve learned something themselves. “It’s not necessarily about giving us money, it’s about time,” he says. “Students are their future employees. We look for a dialogue where we can talk about issues that we’re facing and

Canterbury University’s Peter Cammock.

Peter Sun. University of Waikato’s Peter Sun.

November 2011

| management.co.nz | 45

Auckland University’s Brad Jackson.

that can come an understanding that is beneficial for both worlds.” Leadership New Zealand deputy chair Tony Nowell’s clustering theory suggests that if New Zealand universities and businesses learn to collaborate, then we can develop our scale to take on large global markets more effectively. “Clustering or collaboration is not starting from an ‘I must do’ situation, it starts from an ‘I wonder if we could do’ type situation. If we’re all small and we collaborate then at least we

It should be a cyclical process. It’s not a question of us coming down from the mountain with our research and saying this is the way you should do it – you’d get laughed out of town. – Brad Jackson, University of Auckland also talk about the world they’re in and what we can do to help and assist. But also we’re there to challenge as well. We’re the critics of society so I think it’s important to be able to say look, what you’re doing could be done better and vice versa – they need to tell us that too. It does need to be seen as an equal partnership.” Canterbury University MBA director Peter Cammock agrees, saying more businesses need to involve themselves with education providers. “It’s about col laborat ion a nd bringing together the inspiration of cutting-edge research with the pragmatism of real world management,” says Cammock. “That means greater dialogue between people who teach in universities and practising managers. A lot of that can happen in a classroom setting where business people come into a classroom and the academic is able to offer good research-based material and then the business leaders can bring their experience into it. Out of 46 | management.co.nz | November 2011

can be medium-sized together – it’s an issue of scale.” But he says there’s one major roadblock standing in our way. “We live in a culture of individualists, whereas in places like the UK where the concept is being applied successf u l ly, people a re used to working together in more collective structures. That raises the question – is there specific education in management development that is required about how to work in clusters and how to collaborate better?” University of Waikato Business School associate dean Peter Sun says we need to look overseas if we are to learn anything, but the struggle seems to be ingrained. “In New Zealand the problem is historical,” says Sun. “Companies have never had that level of engagement with universities and therefore this perception has emerged that universities are archaic and the only way we can break it is to bring in some sort of engagement. They need

to trust that they do have things to offer each other. “In the US and Europe, companies engage with the industry. They engage in research and academics have the opportunity to immerse themselves in the business world. You don’t find that level of engagement here and that is why it is difficult for us to find these types of academics who have real world experience in business.” Aside from an attitude adjustment, Sun says we need to start producing a new calibre of academic who is trained to engage with business. “You need what we call ‘pracademics’ – practical academics – who can ta ke research and what they teach, then go into an organisation and apply it while finding out the dynamics of the organisation and contextualise that in their teaching. That calibre of academic is really what is necessary to bridge the gap.” Sun says another effective way of engagement is through the MBA programmes where many academics get consulting work in an organisation. Just this year, the University of Waikato introduced its new Maori MBA programme which has been named one of four finalists in the inaugural MBA Innovation Award offered by the London-based Association of MBAs (AMBA). The first MBA of its kind in the world, the Maori MBA programme is contex tua lised for indigenous businesses. Sun says the programme is based around engagement with Maori business leaders. “We invite Maori leaders into the programme who work in a certain subject matter and they engage with the lecturers. There are also case studies relevant to Maori business so the subjects that are taught are based on those studies.” The winner of the MBA Innovation Award will be announced on October 19. M Hayley Barnett is Mediaweb’s writer at large.

Bright*Star Training Bright*Star is New Zealand’s largest and most respected training brand and training provider. We have been providing training and events for New Zealand’s corporate and public sector for almost 30 years. Our goal is to provide your staff with high level, skill based training to help NZ organisations develop world class performance and best practice methodologies in business. For a full list of training courses on offer please visit www.brightstar.co.nz PO Box 31 506, Auckland 51 Apollo Drive, North Harbour, Auckland Email: register@brightstar.co.nz Website: www.brightstar.co.nz Ph: 09 912 3616 Fax: 09 912 3610

KEY PERSONNEL • Steve Scott (Owner/Managing Director), steve@brightstar.co.nz • Michael Earley (Business Manager – Training), 09-912 3610, 027 448 2780, mike@brightstar.co.nz • Mia Hall (Product Manager – Training), mia@brightstar.co.nz

AMENITIES All training courses are offered in CBD locations, close to main transport hubs and accommodation facilities. Our courses are also available for in house training for larger groups.

COURSES Masterclass for EAs, PAs & Office Managers Suitable for: Executive Assistants, Personal Assistants, Secretarial Staff, Administrators and Office Managers Cost: $1895 Early bird, $2095 Full + GST Duration: 2 day short course 20-21 March, 2012, Auckland | 28-29 February, 2012, Wellington Spaces Available: Up to 25 per course Key Tutor: Natalie Baker Format: Interactive mix of tutorials and case studies Description: This Masterclass will assist you in identifying methods to build your skills and improve your overall performance in the workplace. You will discover effective communication techniques to handle challenging situations as well as identify and select the appropriate management styles that work for you. At the end of the seminar you will leave with a personal action plan for your continued development and success as a professional administrator.

Dealing with Difficult & Different Personalities Suitable for: Any staff who have to deal with difficult people Cost: $1895 Early bird, $2095 Full + GST Duration: 2 day short course 16-17 February, 2012, Auckland

22-23 March, 2012, Wellington Spaces Available: Up to 25 per course Key Tutor: Keith McGregor Format: Interactive mix of tutorials and case studies Description: Dealing with Difficult People and Different Personalities has specifically been designed to assist senior and middle level managers to develop insights into and practical strategies for dealing with those difficult, negative, troublesome and hard to please people. Gain the skills and confidence to positively coach your employees and turn around people with negative and destructive behaviours, attitudes and performance, so that you are in control.

Format: Interactive mix of tutorials and case studies Description: Contract Law for Non Lawyers is an intensely practical guide through the essentials of contract law, exploring such details as when a contract will be required, when you have a contract (and don’t necessarily know it), what types of contract exist and the effect of statutes on your contractual arrangements. Contract Law for Non Lawyers also scrutinises what happens when things go wrong, including how you can get out of a contract, options for assessing damages and remedies for breach and looking at the contractual implications of working in an e-commerce environment.

Finance for the Non Financial Manager

People Management for Technical Professionals

Suitable For: Any non financial staff looking to increase their financial skills and knowledge Cost: $1895 Early bird, $2095 Full + GST Duration: 2 day short course 16-17 November, Auckland 23-24 November, Wellington 27-28 February, 2012, Auckland 12-13 March, 2012, Wellington 13-14 June, 2012, Auckland 21-22 June, 2012, Wellington Spaces Available: Up to 25 per course Key Tutor: Susan Hansen Format: Interactive mix of tutorials and case studies Description: Finance for the Non Financial Manager is an in-depth and practical two-day course that demystifies financial concepts and provides tools for enhancing your effectiveness as a manager who is not left out of the game where financial data and interpretation is concerned. The course covers fundamental issues within the accounting process in straightforward terms and explores the driving factors behind financial information in a way that will help you use your figures more profitably in the workplace.

Suitable For: Technical professionals, scientists, accountants etc who are moving into management roles Cost: $1895 Early bird, $2095 Full + GST Duration: 2 Day Short Course 29-30 November, Auckland 6-7 December, Wellington 12-13 April, 2012, Auckland 26-27 April, 2012, Wellington Spaces Available: Up to 25 per course Key Tutor: Keith McGregor Format: Interactive mix of tutorials and case studies Description: Starting with an exploration of the basic principles of effective management, this highly practical and interactive programme will show technical individuals how to be better managers. Your course trainer will examine the issues that technical people typically encounter when they assume managerial or supervisory roles. Using real life examples and exercises, you will learn how to motivate your staff/team to peak performance through the use of improved communications, positive feedback and motivation techniques. You will also learn how to hire the right people and how to manage difficult people and conflict for positive outcomes.

Project Management Essentials Suitable For: Any staff who are working in project management related roles, especially in a MS project environment Cost: $1895 Early bird, $2095 Full + GST Duration: 2 day short course 1-2 November, Auckland | 29-30 November, Wellington Spaces Available: Up to 25 per course Key Tutor: Rod Gill Format: Interactive mix of tutorials and case studies Description: Including latest international trends and best practices in project management and for using MS Project. This seminar has been designed to provide participants with an intensive two-day introduction to project management tools, techniques and methodologies. You will be taken through a project life cycle from project initiation to the close-out stage, with practical exercises reinforcing learning throughout.

Contract Law for Non Lawyers Suitable For: Non lawyers looking to increase their knowledge of contract law in New Zealand Cost: $1895 Early bird, $2095 Full + GST Duration: 2 day short course 2-3 November, Auckland | 9-10 November, Wellington 20-21 March, 2012, Auckland | 14-15 March, 2012, Wellington Spaces Available: Up to 25 per course Key Tutor: Terry Reid

Institute of Directors in New Zealand (Inc) The Institute of Directors delivers best practice learning which can help good directors become even better, no matter what stage of their career. Our Director Development programme is designed to meet the needs of today’s directors in today’s environments, to maximise the opportunity to interact with peers while learning from presenters who are top in their field. PO Box 25253, Wellington 6146 Tower Building, 50 Customhouse Quay, Wellington Email: mail@iod.org.nz Website: www.iod.org.nz Ph: 04 499 0076

KEY PERSONNEL • Linda Cohen (Director Development Manager), directordevelopment@iod.org.nz

November 2011

| management.co.nz | 47

• Jodi Percy (Director Development Advisor – Northern), jodi.percy@iod.org.nz • Andrea Broad (Director Development Advisor – Southern), andrea.broad@iod.org.nz

AMENITIES All courses are held in central locations close to public transport and accommodation. Tailored training is available to organisations wanting to focus on specific requirements.

COURSES Governance Essentials Suitable for: Senior managers, aspiring and new directors Cost: $785-$940 Duration / Enrolment: 1-day course 14 Feb, 27 Mar, 18 Apr, 1 May Spaces available: 20 per course Description: Designed as a practical introduction to governance, IoD’s Governance Essentials gives participants an understanding of the role and fundamental responsibilities of the board and individual directors.

Finance Essentials Suitable for: Senior managers, aspiring and new directors Cost: $785-940 Duration / Enrolment: 1-day course 8 Feb, 7 Mar, 17 Apr, 15 May Spaces available: 20 per course Description: Every director at the board table must be financially proficient and both read and understand an organisation’s financial statements. Finance Essentials examines the director’s role in relation to financial reporting, demystifies financial terminology and enables you to understand financial reporting and analysis.

Strategy Essentials Suitable for: Senior managers, aspiring and new directors Cost: $785-$940 Duration / Enrolment: 1-day course 9 Feb, 8 Mar, 16 May Spaces available: 20 per course Description: A board of directors takes a long-term view of the business, considers where the business is going and how it’s going to get there. Strategy Essentials will help participants understand the fundamentals of strategy development and how they can add value as they participate in the strategy development process.

Governance Development Programme Suitable for: Senior managers, aspiring and new directors Cost: $2300-$2740 Duration / Enrolment: Ten two-hour sessions. Timings vary depending on location Description: Delivered over ten interactive sessions, this course gives participants all the technical content of Governance Essentials, while providing an ideal opportunity to build relationships and benefit from ongoing interchange through case studies and exercises.

48 | management.co.nz | November 2011

Company Directors’ Course Suitable for: Senior executives and directors of all levels who wish to advance their competency in the governance environment. Cost: $6560-$7875 Duration / Enrolment: 5-day, 6 night – residential course 12-17 Feb, 11-16 Mar, 25-30 Mar, 6-11 May, 20-25 May Spaces available: 25 per course Description: For anyone serious about their career as a director, IoD’s Company Directors’ Course is essential. This week-long residential course provides a comprehensive understanding of what it takes to be a competent director. It provides excellent networking opportunities and ample occasion for participation, discussion and debate.

SPACES AVAILABLE: 25 per programme KEY TUTORS / FACULTY: Director, programme manager and executive coaches FORMAT: On-campus, experiential DESCRIPTION: This 6-day intensive residential programme invites you to reflect on your current leadership style and learn how to reflect on your strategic leadership capabilities for more senior roles.

BA General Management Programme

SUITABLE FOR: Directors, CEOs and General Managers DURATION/ENROLMENT: 3 modules of 5 days over 3 months SPACES AVAILABLE: 15 per programme KEY TUTORS/FACULTY: Director, Programme Manager and subject specialists FORMAT: Auckland CBD, residential, experiential DESCRIPTION: Module 1: Strategy & Change, Module 2: Accounting & Finance, Module 3: Marketing & People. Rigorous & intensive.

Institute For Strategic Leadership The Institute for Strategic Leadership specialises in developing strategic leaders at the director, chief executive and general manager levels. It also supports these executives develop their high potential middle managers (level 3). Level 27, PWC Tower, 188 Quay Street PO Box 105 538, Auckland 1143 Ph: +64 9 366 1560 Fax: +64 9 336 1474 Email: enquiries@leadership.ac.nz Website: www.leadership.ac.nz

KEY PERSONNEL • Geoff Lorigan (Director) +64 21 337 643, g.lorigan@leadership.ac.nz • Lindsay Somerville (Programme Manager) +64 21 848 159, l.somerville@leadership.ac.nz

COURSES Strategic Leadership Programme Suitable For: Directors, chief executives and general managers Cost: NZ$15,900 +GST (plus food & accommodation package) DURATION / ENROLMENT: 7-day residential programme at Millbrook, Queenstown SPACES AVAILABLE: 25 per programme KEY TUTORS / FACULTY: Director, programme manager, executive coaches and lifestyle coaches FORMAT: On-campus, experiential DESCRIPTION:The 7-day intensive residential programme blends team-based learning with focused, one-on-one executive coaching. As a result you’re able to hone your own innate leadership abilities and potentially deliver a vastly more effective style of leadership.

Leadership Programme for High Potentials SUITABLE FOR: Level 3 & 4 high potential executives COST: NZ$8,900 +GST (plus food & accommodation package) DURATION / ENROLMENT: 6-day residential programme at Nugget Point, Queenstown

MANUKAU INSTITUTE OF TECHNOLOGY Faculty of Business The Faculty, consisting of Accounting, Business Administration, Communications, Computing and Information Technology, Management, and Marketing, provides a comprehensive approach to management education from diploma to doctorate. The Faculty is proud to offer courses in collaboration with Southern Cross University (Australia). We have a strong focus on applied vocational business education and maintain strong links with industry. Private Bag 94006, Manukau 2241 North Campus, Otara Road, Manukau Freephone: 0800-MBA DBA (622 322) Fax: 09 968 7783

KEY PERSONNEL • Dr Wayne Dreyer (Associate Dean, Post Graduate), mbadba@manukau.ac.nz, www.manukau.ac.nz/mba

AMENITIES Modern specialised facilities. Free parking.

COURSES Southern Cross University (SCU) Programmes Southern Cross University Doctor of Business Administration (DBA) Suitable For: Senior executives. Qualification: Southern Cross University DBA. Cost: $2151 per unit (2011) including GST. Up to 24 units.

Duration: 6 years maximum part-time. Start in January, May or September. Available: Part-time, supported distance learning. Prerequisites: MBA or a Masters Degree level research or coursework qualification acceptable to Southern Cross University; AND have appropriate executive managerial experience in the public or private sector. Spaces Available: Limited to a maximum of 15 per year. Key tutors / Faculty: Dr Wayne Dreyer, Associate Dean, Post Graduate plus SCU approved Faculty staff. Format: Distance learning with supported workshops for initial research units. The DBA Thesis consists of an approved programme of supervised research. Description: This programme offers senior executives doctoral study opportunities in business. It fosters abilities and competencies in the processes of research in key areas of management and communicating the research results to peer groups and society.

position you to take advantage of the growth and opportunities in Australasia and internationally.

Master of Business Administration (MBA)

Massey offers high-quality and industry relevant study for anyone needing to upgrade their qualifications. Options include Graduate Diplomas, Bachelors, Postgraduate Diplomas, Masters and Doctoral degrees including the Massey MBA. Massey is New Zealand’s specialist and most experienced provider of university level distance education; unparalleled in on and off campus choice. Study options have been developed with busy professionals in mind.

Suitable For: Middle to senior managers. Qualification: Southern Cross University MBA. Cost: $2100 per unit (2011) including GST. 12 units. Duration: Two to four years. Start in January, May or September. Available: Part-time, supported distance learning. Prerequisites: Degree or equivalent, or relevant professional experience. Spaces Available: Unlimited. Key tutors / Faculty: Dr Wayne Dreyer, Associate Dean, Post Graduate plus SCU approved faculty staff. Format: Distance learning with supported workshops and tele-tutorials. Description: This programme enables students to build individual management skills with a focus on the application of knowledge in business for their own personal and professional development.

Other SCU Programmes The following degrees each consist of 12 units costing $2100 per unit including GST, except the MPA where fewer units may apply depending on prior qualifications.

Master of Human Resources and Organisational Development (MHROD) The Master of Human Resources and Organisational Development offers a thorough grounding in the areas of human resources management and development with an emphasis on strategies in organisational development and business leadership.

Master of International Business (MIB) The Master of International Business provides specialist postgraduate studies in the field of international business management and will enable you to meet the challenges of management in today’s rapidly changing global context.

Master of Professional Accounting (MPA) The Master of Professional Accounting programme is designed for non-accounting business professionals looking for a career change and planning to move into the fields of accounting, taxation, economics, law and management.

Postgraduate Diploma in Business and Administration (with endorsement)

Massey University

• ALBANY CAMPUS: Albany Expressway, Albany, Auckland • MANAWATU CAMPUS: State Highway 57, Palmerston North • WELLINGTON CAMPUS: Wallace Street, Mt Cook, Wellington Ph: 0800 MASSEY (0800-627 739) Email: studybiz@massey.ac.nz Website: www.massey.ac.nz

Suitable for: Graduates in business or other disciplines wanting to enhance their existing business knowledge or develop skills in these areas. Qualification: Postgraduate Diploma NZQA registered: Yes Other accreditation: AACSB Duration / Enrolment: 1 year full-time, 2-4 years part-time. Available: Full-time, Part-time, Distance. Prerequisites: Undergraduate degree and postgraduate admission. Format: On and off campus options. Description: Non-business graduates can enhance their first degree by adding a postgraduate qualification. The flexibility of Massey distance allows students to balance study with full-time employment.

KEY PERSONNEL • Professor Emeritus Barrie Macdonald (Acting Pro Vice- Chancellor, College of Business) B.K.Macdonald@massey.ac.nz • Dr Andrew Barney (MBA Director) A.R.Barney@massey.ac.nz

CERTIFICATION Certification agency: AACSB International, Association of MBAs (AMBA).

AMENITIES Proximity to public transport: Good Population of nearest main centre: Auckland 1.4 million, Palmerston North 80,000, Wellington 350,000 Accommodation: Available on-site and locally. Other amenities available: Depending on campus – recreation centre, parking, child care, banking, bookshop, food outlets, library, students clubs, computer labs.

Master of International Sport Management (MISM)

COURSES

The Master of International Sport Management will enhance your employability and earning potential whether you are currently working in the sport business industry or wishing to enter the profession. Sport business is a growth industry full of opportunities. This course will

Suitable for: Executive and managers/owners (corporate, public sector, SME, not-for-profit). Qualification: MBA Cost: $35,000 plus national and international travel NZQA registered: Yes Other accreditations: AACSB, AMBA

50 | management.co.nz | November 2011

Available: Part time Prerequisites: Preferably 7-8 years in employment with 2-3 years in a management role and with a tertiary qualification; preference for degree holders; CV and interview required. Spaces available: 70 for start in March 2012 Format: Combination of on and off campus. Description: Students are enrolled in national cohorts with regional study streams available in multiple New Zealand locations. Structured tuition takes place every three to six weekends over two years. The programme objective is to create senior generalist leaders.

Executive MBA

New Zealand Institute of Management Inc Leaders Building Leaders PO Box 67, Wellington 6140 Level 9, Lumley House, 3-11 Hunter Street, Wellington Phone: 0-4-473 0470, Fax: 0-4-473 0479 Email: national_office@nzim.co.nz Website: www.nzim.co.nz • Kevin Gaunt FNZIM (CEO NZIM Inc.)

NORTHERN PO Box 6600, Wellesley Street, Auckland 1141 DLA Phillips Fox Tower Level 4, 209 Queen Street, Auckland 1010 Freephone: 0800-800 694 Ph: 09 303 9100 Fax: 09 303 9109 Email: enquiries@nzimnorthern.co.nz Website: www.nzimnorthern.co.nz • Tait Grindley, Tait_Grindley@nzimnorthern.co.nz

Central PO Box 11781, Manners Street, Wellington 6142 Level 7, Lumley House, 3-11 Hunter Street, Wellington

Since 1972, Massey University has produced more MBA graduates than any other university in New Zealand. “I went from being a pilot and just managing myself to managing over 50 staff dealing across multiple sectors. My MBA provided a strong grounding in business and the ability to see how all the pieces of the “work place puzzle” all ﬁt together – it was essential for the strategic decision making required in today’s business world. I couldn’t speak more highly of the Massey programme and I would recommend it to anyone.”

Andrew Ridling, MBA (distinction) FLIGHT TRAINING MANAGER, AIR NEW ZEALAND

For more information call 0800 MASSEY or visit www.massey.ac.nz

Creating Leaders, Transforming Business. Forever discovering

Freephone: 0800-373 700 Ph: 0-4-495 8300 Fax: 0-4-495 8301 Email: enquiries@nzimcentral.co.nz Website: www.nzimcentral.co.nz • Susan Andrews MNZIM susan_andrews@nzimcentral.co.nz

Description: NZIM Diploma in Project Management (Level 5) will provide you with the skills and applied knowledge for effective management of projects in a wide range of contexts.

Southern

Suitable for: Those in senior leadership or management or aspiring to move into senior positions. Available: Full-time Spaces available: 25 Key tutors: World class international faculty. Format: Seminar style in hotel setting. Description: AMP takes a holistic view of leadership offering an invaluable opportunity to spend time with an international faculty exploring individual and organisational excellence.

PO Box 13044, Armagh, Christchurch 8141 Unit 4, 303 Blenheim Rd, Christchurch Ph: 03 379 2302 Fax: 03 357 8005 Email: info@nzimsouthern.co.nz Website: www.managementsouth.co.nz • Joseph Thomas (CEO Southern), joseph@nzimsouthern.co.nz

What sets NZIM apart? NZIM is a registered Private Training Establishment and a not-for-profit organisation with a proud history dating back to 1946. • Facilitated by experienced practitioners • “Learning by doing” is the philosophy • Workshop participant numbers are restricted to ensure individual learning • An interactive environment where participant input is encouraged and welcomed • Up-to-date workshop content and comprehensive workbooks and reference manuals provided • Qualifications registered on the framework • Work with ITOs to gain funding.

Philosophy NZIM training and development programmes are at the forefront of management development today, developing the leaders and managers of tomorrow. NZIM can offer learning opportunities to people wanting to acquire new skills and knowledge in a world with no guaranteed career paths and emphasis on selfdevelopment and selfdirection. NZIM studies overseas trends, monitors research and keeps a watchful eye on business development and techniques in order to offer a range of diverse programmes and services.

SNAPSHOT OF COURSES NZIM Diploma in Front Line Management Suitable for: Co-ordinators, team leaders, supervisors. Available: Full-time, part-time. All NZIM regions. Spaces available: 16 Key tutors: Richard Miller, Jim Young, Tony Brindle, Barbara Morris Format: Workshops and post workshop assessment. Description: This Diploma is designed to enhance your overall business and management acumen and ability. NZIM Dip.FLM – Superior business results.

NZIM Diploma in Project Management Suitable for: Individuals who are involved in project management and want a qualification. Duration: 8 days over 9 months. Available: Full-time, part-time. Spaces available: 16 Key tutors: Jim Young, Steve Bridges Format: Workshops and post workshop assessments.

52 | management.co.nz | November 2011

Advanced Management Programme

NZIM Diploma in Management Advanced (Level 6) Suitable for: Managers preparing for senior roles. Duration: 12 months Available: Part-time, Independent study Prerequisites: More than five years management experience. Spaces available: 16 Key tutors: Willem Knibbeler, Richard Millar Format: Workshops and post workshop assessment Description: The NZIM Diploma in Management Advanced programme is an innovative, comprehensive programme designed to extend and develop the potential of key managers and leaders within an organisation.

NZIM Public Programmes and Customised Training & Consultancy NZIM offers over 1000 workshops nationally and has over 50 years of experience in building management capability in New Zealand. NZIM regional training centres in Northern, Central and Southern offer training programmes to cater for the broad spectrum of managers – from Directors and CEOs to team leaders and frontline managers. Programmes range from half-day seminars to onemonth residential. These include NZQA approved qualifications from level 4 to level 6 including courses such as the Diploma in Health and Safety Management (Level 6), NZIM Managerial Excellence (Level 6) and National Certificate (Level 4). NZIM also offers 1, 2, or 3-day programmes covering a wide range of requirements including executive development, operational management, sales and marketing, financial fundamentals and a wide range of essential business skills. NZIM develops customised learning solutions which support organisational development and change. We partner with some of New Zealand’s leading organisations, to deliver high quality learning programmes, designed to meet specific organisational needs; these range from 2-hour learning sessions to half-day seminars to year long qualifications. All these courses and other relevant information can be found on our website www.nzim.co.nz

ORGANISATION DEVELOPMENT INSTITUTE The Organisation Development Institute aims to build capable organisations through growing the capability of their people, by designing and delivering researchinformed learning solutions for tertiary educated managers and professionals. The Institute offers scheduled short courses and custom programmes that are based on adult teaching and learning best practices, supported by leading-edge learning technologies, and designed and delivered by subject experts who are professional educators. PO Box 20395, Bishopdale, Christchurch 8453 Unit 3a, 41 Sir William Pickering Drive Burnside, Christchurch Ph: 03 943 2373 Fax: 03 943 2375 Email: info@development.org.nz Website: www.development.org.nz

KEY PERSONNEL • Kyran Newell (Director), 021 688 966, kyran.newell@development.org.nz • Nicky Trainor (Director), 021 133 1201, nicky.trainor@development.org.nz

PROGRAMMES Short Courses SUITABLE FOR : Managers and professionals seeking research-informed content and best practice tools for application at work, in the domains of leadership behaviours and task management skills. COST: $607.50 to $2250 DURATION / ENROLMENT: 1-3 day workshops SPACES AVAILABLE: Up to 20 per occurrence KEY TUTORS/FACULTY: A portfolio of 25 subject expert professional educators. FORMAT: Experiential workshops DESCRIPTION: Workshops in Self-Awareness for Leadership, Team Leadership, Interpersonal Communication, Negotiation, Personal Resilience, Coaching, Recruitment and Selection, Written and Oral Presentation, Accounting, Marketing, Strategic Management, Risk Management, Project Management, Contract Management, Maintenance Management, Construction Contracts Management, and others.

Custom Programmes SUITABLE FOR : Managers and professionals seeking research-informed content and best practice tools for application at work, in the domains of leadership behaviours and task management skills. COST: By quotation. DURATION / ENROLMENT: As required by client SPACES AVAILABLE: Up to 20 per occurrence KEY TUTORS / FACULTY: A portfolio of 25 subject expert professional educators. FORMAT: Experiential workshops, supported by preworkshop and post-workshop learning elements,

coaching, workplace projects and assessment, all as required by the client. DESCRIPTION: Multi-workshop, multipresenter leadership development programmes at operational, tactical and/or strategic leader levels that address client organisation competencies frameworks or the Institute’s Leadership Competencies Framework; customised workshops leveraged off our short courses content and supported by other learning elements; design and delivery of new content to client specifications.

leaders, seasoned practitioners as well as adult training facilitators and thus provide learning and education that betters global smart practice. PO Box 10515, Wellington 6143 L5, 44 Victoria Street, Wellington 6035 Ph: 04 495 9100, Fax: 04 495 9109 Email: training@projectplusgroup.co.nz Website: www.projectplusgroup.co.nz

KEY PERSONNEL • Karen Clarke (GM, NZ Operations), 021 790 790, karen.clarke@projectplusgroup.co.nz • Abby Leota (Training & Certification Manager), 021 271 5716, abby.leota@projectplusgroup.co.nz • Iain Fraser (Group Managing Director), 021 479 301, iain.fraser@projectplusgroup.com

PROJECT PLUS LTD For over 20 years Project Plus has maintained a passionate focus on our clients’ strategic success. Our training & certification options encompass all aspects of modern, global standard based portfolio, programme and project management. Our range and diversity of learning options is one of the largest in the world and continues to be delivered globally. We continue to develop our product range to meet market needs. Our facilitators are highly experienced business

CERTIFICATION Rating: ISO 9001 Certification agency: BVQI

AMENITIES Proximity to public transport: Good Accommodation: Available locally • NZQA Registered as a Private Training Establishment (PTE). • Registered Education Provider (global status) with the Project Management Institute (PMI®).

• Preferred Supplier to many organisations in NZ and UK. • Accredited PRINCE2 Provider by APMG International. • Public Training Schedule available at www.projectplusgroup.com. • Range of global and formal certification programmes also conducted including our successful NZQA based Certificate Series. • All workshops, study programmes and certification can be run in-house and be customised to meet your organisational needs.

COURSES Executive Skills Programme Suitable For: Level 1-3 leaders Duration / Enrolment: Refer to website NZQA registered Prerequisites: Interest in governance of project-based initiatives and in management of change. Format: Facilitated dialogue in classroom setting. Some online elements. Description: Designed for busy executives and senior leaders who require oversight on portfolio and/or programme management or who provide governance across portfolio and programmes. Choose from 4 distinct workshops that are business-based and designed to allow for optimal learning.

OVER 150 TRAINING COURSES ON OFFER

View our online training calendar for our full range of courses

• HR • LEGAL • POLICY • PROCUREMENT • PROJECT MANAGEMENT • FINANCE & ACCOUNTING • PERSONAL DEVELOPMENT

www.brightstar.co.nz November 2011

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Specialist Skills Programme

KEY PERSONNEL

Suitable For: Level 2-4 leaders Duration / Enrolment: Refer to website NZQA registered Prerequisites: An understanding of benefits that a project-based approach provides to the achievement of strategic objectives. Format: All classroom and facilitated dialogue. Description: This programme provides a wide range of options that allows for advanced knowledge and skills to be gained. Allows individuals to inhance their contribution to their organisation through increased business benefits. Refer to our Core Skills Programme for team member options also.

• Peter Withers (Director of Academic Programmes) • Alison Craig (Programme Manager) • Donovan Breunig (Programme Manager)

Global Credentials Suitable For: Level 2-4 leaders/managers NZQA registered Prerequisites: Some prerequisites are required depending on credential option being pursued. Format: Mostly classroom and facilitated dialogue. Some online learning available also. Description: These options represent the world’s leading project-based credentials and cover global standards, methodologies and pragmatic application that provides an unsurpassed choice. Only our very best facilitators are used to make sure that a successful attainment of your chosen credential is achieved.

AMENITIES Proximity to public transport: Good Population of nearest main centre: 1.4 million (Auckland)

PROGRAMMES

The Master of Business Administration (MBA) Pathway 1 Suitable for: Senior level executives with an average of 15 years’ work experience. Qualification: MBA Degree Other Accreditations: AMBA, EQUIS and AACSB DURATION / ENROLMENT: Two years part-time in block courses fortnightly on Fridays and Saturdays. Prerequisites: A strong first degree or a professional qualification, plus several years’ full-time management experience. Applicants will be personally interviewed. Format: All on campus at Grafton Road. Description: The emphasis is on the enhancement of thinking and high value decision making. The MBA (Pathway 1) attracts senior influencers and decisionmakers from throughout New Zealand. It is an intense and demanding learning environment, focusing on peer dialogue and interaction facilitated by practitioner teachers with extensive academic backgrounds and business experience.

The Master of Business Administration (MBA) Pathway 2

THE UNIVERSITY OF AUCKLAND The Graduate School of Enterprise At The Graduate School of Enterprise at The University of Auckland Business School we believe strongly that executive business education involves both professional and personal development. Engagement in our graduate programmes provides an extraordinary learning opportunity for every individual as a decision maker and leader. All our graduate programmes are designed to develop people for emerging decision-making roles whether they are self-employed, building a new business, managing in a small to medium-sized enterprise, employed in a large corporate, employed in not-for-profit agencies or in the public sector. Our programmes begin by ensuring that you capture the fundamental disciplines of business study; you then build on these disciplines so you can think at advanced levels; and then apply such advanced thinking to decision making in complex real-world situations. You are exposed to learning in the company of other accomplished business and professional people, a peer network that demands high performance and which will benefit you throughout your career. Private Bag 92019, Auckland 12 Grafton Road, Auckland Freephone: 0800-227 337, Fax: 09-373 7063 Email: gse@auckland.ac.nz www.gse.auckland.ac.nz, www.mba.auckland.ac.nz 54 | management.co.nz | November 2011

SUITABLE FOR: Those in senior management positions. QUALIFICATION: MBA degree OTHER ACCREDITATIONS: Association of MBAs, EQUIS and AACSB DURATION / ENROLMENT: One year part-time after successful completion of the Postgraduate Diploma in Business in Administration. AVAILABLE: Part-time PREREQUISITES: Includes Postgraduate Diplomain Business in Administration and interview with selection panel. FORMAT: All on-campus at Grafton Road. DESCRIPTION: The MBA (Pathway 2) offers an intense, challenging experience for individuals seeking to move into the top levels of general management. It is designed to integrate knowledge of the functional areas of business into the overall management process and to further develop decision-making and leadership skills in to a range of management contexts.

Master of Management (MMgt) SUITABLE FOR: Those in, or aspiring to, senior line management positions. QUALIFICATION: Master of Management Degree DURATION / ENROLMENT: 2 years part-time AVAILABLE: Part-time PREREQUISITES: Postgraduate Diploma in Business or equivalent qualification. FORMAT: All on-campus at Grafton Road. DESCRIPTION: The Master of Management is a challenging advanced degree that requires students to integrate research and evidence based management practice. The degree is at the forefront of business education and

reflects current international trends toward best practice based on empirical evidence.

Postgraduate Diploma in Business (PGDipBus) SUITABLE FOR: Those in, or aspiring to senior management positions or self employment. QUALIFICATION: Postgraduate Diploma in Business DURATION / ENROLMENT: 2 years part-time AVAILABLE: Part-time FORMAT: Campus at Grafton Road. DESCRIPTION: The Postgraduate Diploma in Business is specifically designed as a gateway to the MBA (Pathway 2) and Master of Management programmes. It provides a solid grounding in general management skills and modern business practice. Graduates are recognised for their broad knowledge and versatility by employers in both the public and private sectors, in New Zealand and overseas. Options within this programme are Business Administration, Health Management and (subject to numbers) Maori Development.

The University of Auckland Business School Short Courses The University of Auckland Business School offers nearly 200 2-day practical business and management Short Courses each year as part of its commitment to “lifting the competency of the nation”. These Short Courses provide business and professional people from all walks of life opportunities to up-skill and re-skill. With over 40,000 people having attended a Short Course since 1996, they are well proven. Short Courses also deliver an ever-growing number of Inhouse courses and Customised Programmes which are delivered specifically for an organisation, when they want and where they want, with the option to have the courses tailored specifically for that organisation. Please note that pricing indicated is at 2011 rates. For more information and to book your place now, please contact our course advisors. The University of Auckland Business School Short Courses Private Bag 92019, Auckland 1142 Freephone: 0800-800 875, Email: shortcourses@auckland.ac.nz Website: www.shortcourses.ac.nz

KEY PERSONNEL • Darren Levy (Director), dl.levy@auckland.ac.nz • Lisa Hosker (Course Advisor) l.hosker@auckland.ac.nz • Emma Sullivan (Operations Co-ordinator) e.sullivan@auckland.ac.nz

To Darren Levy Director of Executive Development The University of Auckland Business School each We have seen a real shift in the way our managers and staf f interact with you for other since working with The University of Auckland Business School. Thank and tailoring a leadership programme that inspired thinking so that new insights nd values.

skills were gained that are closely aligned with our business strategies a

a programme The presenters were able to quickly understand our business and create who took part that was based on the real life experiences of course participants. Those have now created really enjoyed the lively debates and interactions during class time and ongoing Peer Groups to keep the learning alive. Thank you Darren, you and your team have really motivated and engaged

Michelle McBride Head of People & Development Southern Cross Health Society

Make a REAL difference to your organisation Short Courses available for individuals, teams and organisations

0800 800 875 www.shortcourses.ac.nz

our people.

AMENITIES

Mental Toughness

Proximity to public transport: Good Accommodation: Available locally and at a reduced rate for attendees

COST: $1995 + GST Duration / Enrolment: 2 days Presenter: Jamie Ford On campus or in-house

COURSES Project Management

Presentation Skills

COST: $1895 + GST Duration / Enrolment: 2 days Presenter: Rob Verkerk On campus or in-house

COST: $1995 + GST Duration / Enrolment: 2 days Presenter: Roseann Gedye On campus or in-house

Negotiation Skills

COST: $1895 + GST Duration / Enrolment: 2 days Presenter: Nick Read On campus or in-house

Marketing Management COST: $1995 + GST Duration / Enrolment: 2 days KEY TUTORS: Steve Bridges On campus or in-house

Influencing and Persuading Skills COST: $1895 + GST Duration / Enrolment: 2 days Presenter: Roseann Gedye On campus or in-house

Strategic Planning COST: $1895 + GST Duration / Enrolment: 2 days Presenter: Bryan Travers On campus or in-house

THE UNIVERSITY OF AUCKLAND THE CENTRE FOR CONTINUING EDUCATION Our focus is on high-impact yet affordable courses for entry level to mid level managers and administrators. We understand the modern workplace and the need for skill-based learning opportunities that are relevant and easily applied when the participant returns to their place of work. We choose our facilitators because of their experience in adult learning and their practical experience in the workplace. All our courses can be tailored to suit your needs and delivered in-house. Over a year the Centre delivers approximately 400 short non-credit courses, seminars, workshops and conferences to over 10,000 individuals each year. We have won international awards for our course development and have access to the latest research in adult learning to design and deliver customised training programmes. We look forward to talking to you and assisting you with your staff learning and development. Private Bag 92019, Auckland Level 6, 1 – 11 Short Street, Auckland CBD www.cce.auckland.ac.nz/pdcourses

Motivation and Leadership

Key Personnel

COST: $1895 + GST Duration / Enrolment: 2 days Presenter: Dr Lester Levy On campus or in-house

• Professor Susan Geertshuis (Director) • Anne Cave (Programme Manager), 09 923 9541, a.cave@auckand.ac.nz

Business Skills for New Managers

Proximity to public transport: Excellent Accommodation: Available locally

COST: $1995 + GST Duration / Enrolment: 2 days Presenter: Doug Robertson On campus or in-house

Amenities

Courses coming up in November Better Writing for Business

Finance for Non-Financial Managers COST: $1995 + GST Duration / Enrolment: 2 days Presenter: Susan Hansen On campus or in-house

56 | management.co.nz | November 2011

Effective Meeting Management Suitable for: Anyone who wants to take part in effective meetings, whether as chair, secretary or participant. Cost: $590 + GST Duration: One day Next course: 16 November Spaces Available: 20 Key Tutors: Robyn Bennett Format: Classroom

Getting Started with Sustainability

COST: $1995 + GST Duration / Enrolment: 2 days Presenter: Doug Robertson On campus or in-house

Managing People

Key Tutors: Anita Jenkins Format: Classroom

Suitable for: Anyone who would like to learn about current trends in business writing and to increase theirknowledge of the characteristics that make up business writing genres. Cost: $1056 + GST Next course: 9 and 16 November Duration: Two days Spaces Available: 20

Suitable for: Anyone interested in how sustainable business practices can achieve innovative change and provide the opportunity for increased profitability. It is suitable for people running a department, or a business, or anyone wanting to understand how a business becomes sustainable. Cost: $590 + GST Duration: One day Next course: 11 November Spaces Available: 20 Key Tutors: Bridget Marsh Format: Classroom

Building an Effective PA/Manager Relationship Suitable for: PAs and Managers wanting to make the best use of this team of two. Cost: $590 + GST (covers PAs and Manager) Duration: Half day Next course: 11 November Spaces Available: 20 Key Tutors: Robyn Bennett Format: Classroom

Project Management Essentials Suitable for: Anyone who is currently running or involved in the management of projects of any size, and who wants to learn fundamental project management skills. Cost: $1056 + GST Duration: Two days Next course: 1 and 2 December Spaces Available: 20

Other courses available in 2012 • Creating High Performance People and Teams • Leading and Implementing Change in the Workplace • Introduction to Managing the Performance of Staff • Effective Business Communication • Effective Intercultural Communication at Work • Engaging your Stakeholders • Essential Management Skills • Finance Essentials for Managers • The Professional Receptionist

Phone: +64 3 364 2316 Email: bsec@canterbury.ac.nz Website: www.bsec.canterbury.ac.nz

KEY PERSONNEL

university of canterbury College of Business and Economics The University of Canterbury is ranked within the top 2% of universities in the world. The College of Business and Economics is ranked in the world top 100 for Accounting, Economics and Finance. In 2006, the College of Business and Economics celebrated the centenary of NZ’s oldest Bachelor of Commerce degree and 2009 marked the 25th anniversary of UC’s internationally accredited MBA programme. UC is committed to offering you the opportunity to gain an internationally recognised qualification with courses underpinned by leading-edge research in a vibrant learning environment. College of Business and Economics, Private Bag 4800, Christchurch 8140 Law Building, Level 4, University of Canterbury, Ilam, Christchurch

• Professor Adrian Sawyer (Acting Pro-Vice-Chancellor and Dean of Commerce, College of Business and Economics), +64 3 364 3113, adrian.sawyer@canterbury.ac.nz • Dr Peter Cammock (Management Development Programmes Director, College of Business and Economics), +64 3 364 2657, peter.cammock@canterbury.ac.nz

SPACES AVAILABLE: 35 KEY TUTORS / FACULTY: Dr Peter Cammock, Management Development Programmes Director FORMAT: On-campus (Christchurch) DESCRIPTION: UC’s internationally accredited, worldclass MBA programme places emphasis on the development of responsible leadership founded on sound business acumen, a strategic perspective and innovation. The programme supports individuals who want to make the transition into significant and contributing leadership roles. APPLICATIONS CLOSE: 25 November 2011

Graduate Diploma in Business Administration (GradDipBA)

PROGRAMMES University of Canterbury MBA SUITABLE FOR: Experienced professionals looking to develop their general management skills and to build a foundation for a lifetime of leadership. COST: New Zealand citizens and permanent residents: $31,260*. International students: NZ$47,580*. (*2012 fees, GST inclusive) QUALIFICATION: MBA ACCREDITATION: Association of MBAs (AMBA) Duration: 15 months full-time, 21⁄2 to 5 years part-time PREREQUISITES: Minimum of 5 years relevant work experience, undergraduate degree. International applicants need to provide IELTS/ TOEFL and GMAT scores.

SUITABLE FOR: Technical and professional people looking to develop their leadership and management abilities.The GradDipBA is particularly suitable for those who do not have an undergraduate degree as it provides a pathway to the UC MBA programme. COST: New Zealand citizens and permanent residents: NZ$15,960*. International students: NZ$24,120*. (*2012 fees, GST inclusive) QUALIFICATION: GradDipBA NZQA REGISTERED: Yes DURATION: 8 months full-time, 20 months to 4 years part-time PREREQUISITES: Minimum of 5 years relevant work experience, undergraduate degree (those without an

DO YOU WANT TO STUDY AT NEW ZEALAND’S LEADING BUSINESS SCHOOL? The Waikato Management School, Internationally Triple Crown accredited (AASCB International, EQUIS and AMBA), is where applied industry meets technology. The Waikato MBA focuses on leadership, value creation, sustainability, global experience, expert learning, collaborative partnerships, and communication. This is an international qualiﬁcation and starts April 2012. We are about you. Your life. Your career. Your organisation.

There’s no stopping you E kore e taea te aukati i a koe

Corporate & Executive Education. For more information phone 0800 800 891, email execed@waikato.ac.nz or visit www.execed.ac.nz

November 2011

| management.co.nz | 57

undergraduate degree may be considered in consultation with the Management Development Programmes Director). International applicants need to provide IELTS/ TOEFL and GMAT scores. SPACES AVAILABLE: 35 KEY TUTORS / FACULTY: Dr Peter Cammock, Management Development Programmes Director FORMAT: On-campus (Christchurch) DESCRIPTION: The GradDipBA is designed to enable busy professionals to continue their learning and development while remaining in full-time employment. APPLICATIONS CLOSE: 25 November 2011

Postgraduate Certificate in Strategic Leadership (PGCertStratLdrship) SUITABLE FOR: Experienced managers who are keen to develop their leadership capability and future career prospects. Postgraduate Certificate in Strategic Leadership courses can be credited to both the Graduate Diploma in Business Administration and the UC MBA programme. COST: New Zealand citizens and permanent residents: NZ$1,275 per module*. International students: NZ$1,955 per module*. (*2012 fees, GST inclusive) QUALIFICATION: PGCertStratLdrship NZQA REGISTERED: Yes DURATION: 6 modules (taught on a Friday and Saturday) over 2 years, anytime start. PREREQUISITES: Minimum of 5 years relevant work experience, undergraduate degree (those without an undergraduate degree may be considered in consultation with the Management Development Programmes Director). International applicants need to provide IELTS/ TOEFL and GMAT scores. SPACES AVAILABLE: 20 per module KEY TUTORS / FACULTY: Dr Peter Cammock, Management Development Programmes Director FORMAT: On-campus (Christchurch) DESCRIPTION: The Postgraduate Certificate in Strategic Leadership meets the demands of business professionals by providing leadership and strategy courses in a condensed modular format. The six modules include, Foundations of Responsible Leadership, Managerial Skills and Organisational Behaviour, Leading Change, Managing People and Performance, Leading Sustainable Enterprises, and Business Strategy and Innovation. Each module provides practical evidence-based tools and utilises frameworks that are focused on building capability in managerial leadership and strategy. APPLICATIONS CLOSE: A month before module start date.

University of Otago The University of Otago’s School of Business offers a range of courses and qualifications from undergraduate level right through to executive education. The School is EQUIS and AACSB accredited which ensures qualifications are of an international standard and globally portable. School of Business, University of Otago PO Box 56, Dunedin 9054 60 Clyde Street, Dunedin 9016 Phone: 03 479 8149 Email: business@otago.ac.nz Website: www.otago.ac.nz/business

Key Personnel • Professor George Benwell (Dean, School of Business), dean@business.otago.ac.nz • Mark Wilesmith (Academic Manager, School of Business), mark.wilesmith@otago.ac.nz

Postgraduate Courses Master of Entrepreneurship SUITABLE FOR: Recent graduates and professionals who aspire to become entrepreneurs. QUALIFICATION: MEntr DURATION: 15 months – seven three day block courses run over 12 months, and a 20 week business project. LOCATION: Dunedin – February intake (applications close in January), Queenstown – July intake (applications close in June). PREREQUISITES: Undergraduate degree or relevant work experience/qualifications. SPACES AVAILABLE: 35 KEY PERSONNEL: Ruth Matika, ruth.matika@ otago.ac.nz FORMAT: The programme consists of seven modules. Each module consists of an intensive three-day block course with additional projectbased assignments. The programme concludes with a five-month practical project based on the student’s or local entrepreneur’s new venture.

Master of Commerce/Master of Business/ Master of Tourism SUITABLE FOR: Those seeking to develop thorough business research skills. QUALIFICATION: MCom, MBus, MTour DURATION: MCom (Thesis only: minimum 12 months full-time), MBus (Up to 18 months fulltime), MTour (12 months) AVAILABLE: Full-time, Part-time PREREQUISITES: MCom (BCom(Hons), PGDipCom or equivalent). MBus (Undergraduate degree

58 | management.co.nz | November 2011

in relevant field). MTour (Undergraduate degree in relevant field). SPACES AVAILABLE: Open offer of place subject to satisfactory grades. FORMAT: MCom (On-campus self-directed, supervised research). MBus (On-campus course + individual project). MTour (On-campus course + independent research). DESCRIPTION: The MCom is a research degree which develops research skills, an in-depth knowledge of a chosen area of business and provides the basis of an academic career. The MBus is a professionally orientated specialist degree designed to develop applied research skills, enhance knowledge and provide a basis for career progression.The MTour is an interdisciplinary programme that examines the phenomena of tourism, leisure, sport, recreation, events, and hospitality from social, commercial, and environmental perspectives.

The Otago MBA SUITABLE FOR: Experienced managers, professionals and administrators seeking a broad foundation across all aspects of the external business environment, as well as development in the functional areas of management and strategy. QUALIFICATION: MBA (full-time or part-time) DURATION: The MBA is full-time over 16 months with April intake (Applications close 1 December for domestic students and 31 October for international students). Parttime students can complete the MBA over a period of up to five years. PREREQUISITES: Undergraduate degree, minimum three years’ relevant work experience, balanced GMAT of 550+, leadership skills. FORMAT: On-campus (Dunedin) KEY PERSONNEL: Ian Lafferty (Director, Executive Programmes), ian.lafferty@otago.ac.nz DESCRIPTION: A high quality academically rigorous programme with a strong focus on managerial relevance, practical application and personal development.

Executive Education Open Courses www.otagoshortcourses.co.nz SUITABLE FOR: Middle to senior managers with developed functional and industry skills who wish to enhance their managerial skill base. QUALIFICATION: Can lead towards Postgraduate Certificate in Executive Management (PGCertEM),or Postgraduate Diploma in Executive Management (PGDipEM). DURATION: Series of five-day courses covering various managerial and organisational topics or tailored to an individual organisation’s requirements. AVAILABLE: On-campus or onsite (customised courses for organisations). SPACES AVAILABLE: Participants to each course are limited to ensure an interactive learning environment. KEY PERSONNEL: Megan Crawford (Manager), megan.crawford@otago.ac.nz FORMAT: Executive Education open courses are designed to give you maximum return for your time and money. Unlike other courses which provide a completely prescribed set of topics for study, the Executive Education course options allow individuals to select areas for their own personal development – all of which can be studied independently and can lead towards either the PGCertEM or PGDipEM.

programme includes an International Study Tour in Part Two of the programme.

• put leadership into context with the rapidly changing business environment and challenge leaders to be bold while balancing risk with resilience, and • focus on your ability to lead within your team, to create a culture of collaborative learning and enable you to identify the undiscovered competitive advantage that your organisation inherently possesses. Please contact us to discuss your needs.

Master of Business and Management (MBM) SUITABLE FOR: Students with an undergraduate degree in any discipline. The 12 month fast track programme requires a minimum of three years work experience. The 15 month programme is designed for those without any work experience. Please contact 0800 800 891 for more details on entry criteria. QUALIFICATION: Master of Business and Management DURATION: 12 months or 15 months (both full-time) DESCRIPTION: The programme provides training in management that will complement your undergraduate degree and provide you with the core skills and knowledge required for a wide range of management and leadership roles in a modern economy. Significant emphasis will be placed on reflective learning, creative problem solving and leadership placed in an international context.

The University of Waikato Centre for Corporate & Executive Education Private Bag 3105, Hamilton Ph: 07 838 4198 or Freephone: 0800 800 891 Fax: 07 838 4675 Email: execed@waikato.ac.nz Website: www.execed.ac.nz

KEY PERSONNEL • Dr Peter Sun (Associate Dean Enterprise) • Meshweyla Macdonald (Associate Director Operations) • Andrew Buchanan-Smart (Director, Corporate and External Relations)

Postgraduate Diploma in Management Studies SUITABLE FOR: Business owners, middle managers or technical specialists looking to improve their understanding of the functional areas of business. QUALIFICATION: Postgraduate Diploma DURATION: Part-time over 1-2 years offered in Hamilton and Tauranga. Schedule depends on location. DESCRIPTION: The programme develops management skills, covers functional business areas, and applies learning to existing workplace situations. Graduates of the programme are well equipped to improve performance in middle management roles through the use of strategic and value creation skills acquired in the programme.

CERTIFICATION • AMBA (International MBA accreditation, UK based) • EQUIS (International business school accreditation, based in Europe) • AACSB (International business school accreditation, based in North America) • The Waikato Management School is Triple Crown accredited • ISO 9001

COURSES Master of Business Administration (MBA)

Customised Corporate Programmes

SUITABLE FOR: Experienced managers, business owners, or functional and technical specialists looking to increase their general, strategic and leadership understanding of business. QUALIFICATION: Master of Business Administration DURATION: 2 years part-time DESCRIPTION: The programme focuses on leadership, value creation, sustainability, global experience, expert learning, collaborative partnerships, and communication. It is also designed to provide participants with a broad base of current practice and applied research. It is taught by leading academics and industry professionals from NZ’s leading Business School. The Waikato MBA prepares you for real-world senior management and leadership positions in national and international organisations. The

SUITABLE FOR: Managers and Executives in medium to large organisations. QUALIFICATION: Can be designed with Postgraduate Certificate or Diploma options. FORMAT: Combination of workshops, action learning, work-based projects, simulations & assessment. DESCRIPTION: This three dimensional leadership programme is designed with the growth of your organisation in mind. It provides a holistic approach to leadership complemented by practical skills and application. This programme will: • challenge you and your team to explore personal boundaries, focusing on value creation, sense of community while discovering individual leadership styles;

Looking for fresh leadership learning solutions? Try us for developing leadership behaviours and task management skills for your organisation leaders, managers, team leaders and technical specialists. Short Courses | Custom Workshops and Programmes | Leadership Development Programme Phone Kyran Newell or Nicky Trainor on 03 943 2373

See us on the web at www.development.org.nz

November 2011

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M Executive health Peter Tynan

A healthy incentive

he ongoing effects of the global economic downturn might mean people aren’t leaving their posts at the moment – but it doesn’t mean they don’t want to. A survey of 7100 New Zealanders and Australians, carried out by Insync Surveys and Red Balloon in July and August, revealed the startling statistic that 45 percent of those surveyed were planning to look for another job within the year. While this might be a bit of wishful thinking for many, it points to worrying levels of job dissatisfaction. The downturn may have caused some complacency amongst employers when it comes to retention. But even economic woes won’t stop your best and brightest looking at new opportunities, or being shoulder tapped. Skilled vacancies are also on the rise. The Department of Labour’s Jobs Online report in August showed that the number of skilled job vacancies advertised online had increased by 21.3 percent over the last year. Recruiting and retaining highperforming employees (and avoiding the high costs of employee churn) requires understanding a person’s key motivators, and then tailoring a package to suit. Increasingly, people are looking for employers who will help them achieve a good work-life balance – stated as the number-one reason for staying with an employer by respondents in the Insync/ Red Balloon survey. In the US, some employers are getting very creative in

helping their teams achieve this modernday holy grail, with benefits including in-house beauty salons, on-site car repairs and even pet-sitting. An important factor in that balance is the maintenance of good health. A 2010 survey of nearly 5000 Kiwi employees by Kelly Services found that employerprovided healthcare benefits were deemed either ‘very important’ or ‘important’ to 85 percent of workers. According to Julie Cressey of Madison Recruitment, the type of benefit sought is generally dependent on life stage. Says Cressey: “More mature candidates or those looking for more senior roles place a much higher importance on a health [insurance] benefit, whereas others are attracted to gym or sports club memberships. Those in the earlier stages of their careers are generally not overly concerned about needing surgery, but at the same time they understand the value of health and wellbeing and work-life balance.” Perhaps reflective of the influence work has in our lives, 80 percent of the Kelly survey respondents believed their employer should take some responsibility for their health and wellbeing. The desire for health-related benefits and greater involvement is very good news for employers. Why? Aside from enhancing loyalty and morale, benefits that help to improve employee health can provide extra return on investment through their documented ability to reduce the high

costs of sick leave and presenteeism (when an employee is at work, but due to illness, not fully productive). Whether it’s a weekly fruit delivery or a comprehensive package, health benefits demonstrate a workplace culture that values the all-important ‘balancing’ aspects of life. And for many people, you can’t put a price on that. M Peter Tynan is chief executive of Southern Cross Health Society.

Taking care of business Ravensdown, New Zealand’s largest fertiliser supplier, provides employees with a rather unique benefit – an annual allocation of free fertiliser. This is just one part of a comprehensive employee benefits package that includes a clothing allowance, discounted computer software and mobile phone services, and fully subsidised health insurance. Tracey Paterson, general manager of human resources at Ravensdown, says while health insurance is regarded as a ‘nice to have’ by candidates, it has much more power as a retention tool. “Our people are used to being looked after. For full-time employees, [health] cover extends to partners and children – that’s a benefit you don’t give up lightly,” Paterson says.

Healthy staff means higher productivity Covering staff with Southern Cross health insurance means less sick days, quicker return to work1 and it’s an attractive incentive for retaining and recruiting employees. It all adds up to a more

productive and profitable business. Your profits, not ours. Because we’re not for profit, we’re for you. To find out more, call Southern Cross Health Society on 0800 323 555 or visit our website healthybusiness.co.nz

1. TNS research 2004.

Healthy people healthy business Southern Cross Medical Care Society, Level 1, Ernst & Young Building, 2 Takutai Square, Auckland 1010

60 | management.co.nz | NOvemBER 2011

WORD COUNT: Approx 490 words + short heading + pic/s AD SIZE: 185w xadvertorial 20dmm

workbase heading

Have you got a literacy, numeracy or communication problem in your workplace?

BodNiamet, sustinci el dolum veliquat. Lut iriusto et, conse con erciduis ad exeraessim euiscip ismodoloreet iure dolupta tummolesto conulputat ipisl do conulla ndreet, quis dit pratue euisci eugue feuisi tatum velestinit nonulput loborer ipis do dolore eugait el inis atum exercipsum illandignibh ese dolor suscipis augiat dolorem aut utpat nis augait iusci blandip ex esto odolore velit nummod dui tem dipit Ibh enis nullam, conum praessit, vulputat, commod eros ad iriurem accummy nummy modip essectet adigna facillan eugait nullametue consed min henim dolorpe raessi. Ulluptat. Wisl in henismo loreet quip eliquat, conum er senisis duis Dear Mark Undertaking the knowledge capture lamet ent wis dolorem enis augiam, sit, ese eu faciduisi blaoreros nos nonsecteprocess Dear Workbase • Eenis nullam, conum iriurem provides many benefits. 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Im do commodolobor autat, sim quat numsan utat augue mincin et nos num systems and processes. el digna feugiam dunt lute Equis ad dunt am diatum volum Once venisthis doleniat am nis alit nulla amet, si quis nim quip is done, Workbase interviews Thomas, core eugiamGlynis dolesenit, quam dolenissi. zzrilis am, sent ullum quipit alisis en-key tie eum nim ipsusciniam quipit vulput personnel to collect the information Workbase Consultant Bore doloborem dolorper irilla cordre vullam il ing exerosto dignim ilitmaking praessit, voloborerit, suscil irillaorem sure that there are relevant peri ureril in ulput lum quat endiam, praesseniam, velesenisim volore magnaworkplace velisl ut in er si blandre tate veliquat If you would like to examples for each piece of volor accum velisl ullum vulla facil ulla conse magnim in esto conulla augueinformation. niscilis nim vullum quatincipsum know more about Workbase then documents velieraestrud estrud dit nulla eniam erit, quatin hendrerit ad tet lutandqui blamet, se faciduntalongside adignim in volor facip eu facihow Workbase can maps the information feum vercinc illandiat alit, consectem ullum zzrilisim nis nulland reriuscinciexisting se corperit lam dionse veliquate verosto help with knowledge records such as company venim nisimGlynis nit landion tinisl dignim ipismodignit praesendrepolicies dolent faccum nummodo capture, contact on: ummolent utat. andlaprocedures, including loreet doAgnagthomas@workbase.org.nz feugait exer il ex ex enim zzriusto Email: operating er iliquis nos eros dolobor sum irillaorestandard lore feuis autetprocedures. wis nim eaThis feugiamet, od dion iliquis nostrud tatie dunt Phone: (09)henit 361 3800 identifies contradictions or sustie min ullam quismol oboreet ullametum.process conse dignimany iliquam, volorper veriure ting et dolortin henit alis Mobile: (021) 430ex994 Um del dolor il et aliquate mod eumgaps. enisisi tatem vel ulputpatie euisi enisi

Ask Workbase – New Zealand’s leading literacy, numeracy and communication specialists

The New Zealand Centre for Workforce Literacy Development Katherine Percy – Chief Executive phone: 09 361 3800 email: kpercy@workbase.org.nz www.workbase.org.nz

2 www.management.co.nz Management april 2010

November 2011

| management.co.nz | 61

M Executive development Sponsored by The University of Auckland Business School Short Courses www.shortcourses.ac.nz 0800 800 875

November

9-11 Team Leader – Building Effective Teams. NZIM Northern. www.nzimnorthern.co.nz

16 Finance Essentials. Wellington. Institute of Directors. www.iod.org.nz

10 Annual Organisational Development (OD) Forum. Wellington. www.thoughtpartners.co.nz/ odforum

16-17 LEAN Thinking. Auckland. University of Auckland Short Courses. www.shortcourses.ac.nz

10 Training Needs Analysis (NCAET Paper). NZIM Central. www.nzimcentral.co.nz

16-18 Introduction to Management. NZIM Northern. www.nzimnorthern.co.nz

7-9 Project Management. NZIM Central. www.nzimcentral.co.nz

10 How to Handle Difficult Customers. Invercargill. NZIM Southern. www.nzimsouthern.co.nz

7-9 Team Leader – The Essential Skills. Christchurch. NZIM Southern. www.nzimsouthern.co.nz

10-11 Prince 2 Practitioner. Wellington. Project Plus Ltd. www.projectplusgroup.co.nz

23-24 Recruitment and Induction. Auckland. University of Auckland Short Courses. www.shortcourses.ac.nz

8-9 Chairing the Board. Auckland. Institute of Directors. www.iod.org.nz

10-11 Advanced Business Writing. Bright*Star Conferences & Training. www.brightstar.co.nz

9 Project Planning and Control. Wellington. Project Plus Ltd. www.projectplusgroup.co.nz

10-11 Certificate in Project Coordination. Wellington. Project Plus Ltd. www.projectplusgroup.co.nz

9 Governance Essentials. Auckland. Institute of Directors. www.iod.org.nz

11 YouTube – Communicating with Impact. Auckland. University of Auckland Short Courses. www.shortcourses.ac.nz

7-8 Systems Thinking. Auckland. University of Auckland Short Courses. www.shortcourses.ac.nz 7-8 Business Case Development. Auckland. University of Auckland Short Courses. www.shortcourses.ac.nz 7-9 Prince2 Foundation.Wellington. Project Plus Ltd. www.projectplusgroup.co.nz

9-10 How to Manage + Lead Successfully. Queenstown. NZIM Southern. www.nzimsouthern.co.nz 9-10 Business Forecasting & Budgeting. Auckland. University of Auckland Short Courses. www.shortcourses.ac.nz 9-10 Achieving Success: The Art of Deliberate Success. Auckland. University of Auckland Short Courses. www.shortcourses.ac.nz

14 Ensure Team Effectiveness (DFM Modular). NZIM Central. www.nzimcentral.co.nz

23-24 Effective Performance Conversations. Auckland. University of Auckland Short Courses. www.shortcourses.ac.nz 27-Dec 2 Company Directors’ Course. Auckland. Institute of Directors. www.iod.org.nz 28-29 Governance. Auckland. University of Auckland Short Courses. www.shortcourses.ac.nz 28-29 Motivation and Leadership. Auckland. University of Auckland Short Courses. www.shortcourses.ac.nz

15 Advanced Leadership: The People Factor - Building Productive Work Relationships. Christchurch. Organisation Development Institute. www.development.org.nz

28-30 10th Annual ScienceBased Incubators Conference. Auckland. The TechnoPolicy Network. www.technopolicy.net/sbi/

15-16 People Skills for Prince2. NZIM Central. www.nzimcentral.co.nz

For more detailed diary listings, visit www. management.co.nz

To Darren Levy, The University of Auckland Business School Thank you for tailoring a leadership programme for our organisation. New insights were gained that are closely aligned with our business strategies and values. Your team have motivated and engaged our people. Michelle McBride, Southern Cross Health Society

Make a REAL difference to your organisation 0800 800 875 | www.shortcourses.ac.nz

62 | management.co.nz | NOVember 2011

execs on the move M

Rob Zubielevitch, Richard de Lautour

Kim Campbell

The Employers and Manufacturers Association’s newly appointed chief executive Kim Campbell has been involved with the EMA throughout his career in manufacturing and exporting businesses in New Zealand, Australia and the Philippines. He has worked for Hong Kong based Zuellig Group for the past 13 years and recently returned from the Philippines where he was executive chairman of Pharma Industries Incorporated, a pharmaceuticals manufacturing group employing over 1700 staff. Campbell has previously served as a director of EMA, as president of the Export Institute (now Export New Zealand) and as a councillor of Business New Zealand. Despite the difficulties facing the manufacturing sector today, such as a strong New Zealand dollar and depressed consumer confidence levels, Campbell says he is optimistic about its future. “Our vision [at the EMA] is to provide leadership so New Zealand is prosperous and our members are prosperous.”

The Financial Services Federation, the industry body for the non-bank finance sector, has appointed Rob Zubielevitch (top), director, sales and business development for GE Capital, as its chair. He replaces Girol Karacaoglum chief executive of PSIS. Richard de Lautour, chief executive, Instant Finance, has been appointed deputy chair.

Martin Fairweather

Auckland Tourism, Events and Economic Development (ATEED), established by the Auckland Council to improve New Zealand’s economic prosperity by helping lead the successful transformation of Auckland’s economy, has appointed Martin Fairweather as general manager planning and performance. He was previously group strategy executive at NZ Post.

Graeme Switzer

National and trans-Tasman law firm Duncan Cotterill has appointed Graeme Switzer as a partner, based in its Auckland office. Previously with Bell Gully, Switzer specialises in mergers and acquisitions, company restructurings, securities

offerings and general corporate and commercial law.

Tom Hooper

The Canterbury Development Corporation has appointed Tom Hooper as its new CEO. He replaces Bill Luff who is now leading various major projects at Solid Energy. Hooper’s top priority will be to complete the reworking of Christchurch Economic Development Strategy post the quakes.

Vaughan Schwass, Andrew Young

Les Mills International has announced two key staff changes. Vaughan Schwass (top), marketing director for the past six years, has accepted the newly created role of CEO of Les Mills Enterprises. Andrew Young, who joined the company in May as marketing manager, replaces Schwass as marketing director. Prior to joining Les Mills, Young was CEO of the Starship Foundation.

Roger Beaumont

ASB has appointed Roger Beaumont to the bank’s executive leadership team as executive general manager, marketing & online. In this newly created role he will have responsibility for the bank’s brand and marketing, PR and external relations and internet banking teams. Prior to joining ASB, Beaumont held senior leadership roles at MediaWorks.

PMO across the Enterprise? At Project Plus we have years of experience in designing and implementing PMO’s for all needs. From enterprise models to support functions, we can rapidly design and deploy a solution for your specific needs. Get in touch to learn more.

www.projectplusgroup.co.nz November 2011

| management.co.nz | 63

M TOP tips

Inspire your team

e all aspire to be great leaders. When we look at leaders, we admire one quality. That quality is the ability to inspire people. How do they do this? Is it a skill that can be learned, or is it just natural charisma? The good news is that the ability to inspire people is the same as any other aspect of leadership, a skill that can be learned. Here are some top tips that will help you develop this rare and invaluable skill.

When an inspiring leader is described, you always hear the same word and that word is “passionate “. If you care about something, and I mean really care, don’t be afraid to be passionate about it. Share it; scream it from the rooftops if you have to. Even if people don’t initially share that same passion, eventually they will.

Be honest about your weaknesses

If you have been a manager for a significant amount of time, you may have forgotten this key fact, so you may want to sit down while you read this. Your team knows you are not perfect. Every member of the team has areas they need to develop and you are no different. Share those challenges with your team. They won’t be viewed as weaknesses and to be honest, they will, more than likely already know.

Care about people

Deep down at some level we all want to feel valued. We want to believe that there is some greater reason for our existence. While as a leader, you can never fill the need that should be filled by healthy personal relationships, remember to ask your staff about their weekend, how they are feeling, share

64 | management.co.nz | November 2011

Photo: thinkstockphotos.com

Be passionate

a joke or two. It’s the small things that count. Show that you value them not only as an employee but as a person.

Share the vision

We all live in our own world, each with its own set of priorities but all sharing one consistent theme. We are each the main character in our individual story. We are the focus of our own world within a bigger world. When sharing your vision make people understand what role they play and stress just how important that role is. They need to embrace your world as if it’s their own.

Become a storyteller

There has never been a person that has been inspired by a graph – well not a sane person anyway. Share your journey and the journeys of people who have been on a similar path that you are now expecting your team to take. Make the journey real to people, make them realise that the emotions they feel have been felt by others including yourself, but like those people before them, they will find that this journey is the right one.

Go beyond what is expected

In order to expect your team to do things which will amaze and impress you, first of all you have to do the same for them. Find out what is the most they expect of you as a leader and then use that as your starting point. Exceed what is expected of you and your team will do the same in return.

Be responsible but not accountable for everything

You are the boss and the buck stops with you. Make sure that your team knows their roles and what they are accountable for but make sure everyone is aware that the only person responsible for any failure is yourself. Remember the words of Winston Churchill “Responsibility is the price of greatness”. In the end its greatness that inspires people. M Mark Wager is a leadership coach with Elite LD. mark@eliteld.co.nz.

Vol 9 No 2

November 2011

Changing of the guard IoDâ&#x20AC;&#x2122;s Ralph Chivers p66 The challenge of

Choosing the CEO p68

The governance myth Size matters p70

Changing of the guard at IoD

Ralph Chivers Ralph Chivers – Career to date Much of Chivers’ career has been in the telecommunications sector, most recently as Telecom’s Christchurch Earthquake Recovery programme director. He was ultra-fast broadband (UFB) programme manager during Telecom’s negotiations over the $1.35 billion UFB project. Prior to that, he was involved in setting up Crown Fibre Holdings for the Ministry of Economic Development and was the inaugural CEO of the Telecommunications Carriers’ Forum (TCF). Chivers is a member of both the IoD and the Australian Institute of Company Directors (AICD) and has held a number of governance roles in community and voluntary organisations. He holds a Bachelor of Engineering and a Master of Public Policy.

66 |

THE DIRECTOR | November 2011

Raising governance standards and the reputation of directors are the key drivers for Ralph Chivers in his new role as CEO of the Institute of Directors.

“Overall, we want to raise the standard of governance in New Zealand. That means improving standards across the board, in the NZX top 100, NFPs and SMEs. We see a strong need to professionalise so that ‘professional director’ means something more than just than just a label people can give themselves. “And we need to improve the reputation of the director profession which has taken a substantial hit due to finance company collapses and prosecutions.” Chivers acknowledges that these are challenging times for directors. “The GFC

and finance company failures have placed a focus on roles of directors and there are greater calls for a holding to account. Directors are being reminded that the standard of care is very high and there are serious consequences for failing duties.” And they are likely to become more serious, he says. The Financial Markets Conduct Bill proposes increased civil and criminal penalties for persons (directors included) who breach their duties. “While the news appears negative, senior directors say that we are simply being reminded of what the standard has al-

ways been – that when you are custodians of other people’s money a high standard of care is required. Overall it’s a salutary reminder that being a director is an active role not a passive one, and that the level of skill and knowledge required is high.” So how can boards meet the required standard? A robust director recruitment policy is a good foundation, says Chivers, as is commitment to professional training by directors at all stages of their career. He also believes that there should be a mechanism in place to regularly review board effectiveness. “It would be a rare organisation that didn’t have regular appraisals of its key contributors,” says Chivers. Chivers thinks there is a growing recognition among SMEs that formal governance is vital at a certain stage of their growth. This could be an advisory board or a full board. “Certainly, when they are looking for serious money from banks or the market, the funders will look hard at the standard of governance and often require structures to be put in place before money is forthcoming. For a company that is looking to sell or list, a good quality board is essential. I still think there is a need to raise awareness within the SME community of how good governance can help them grow, and to provide them with the appropriate toolkits.” He says that the not-for-profit sector has much to gain from improving its standard of governance. “Frequently, this sector is managed and governed by enthusiastic volunteers who have a passion for what they are doing, but perhaps have less knowledge of governance. Good governance does require some structure and discipline, but the results are worth it.” Asked if there is a New Zealand governance perspective or cultural influences on governance practice here, Chivers responded: “There is a strong alignment in what is considered good governance practice between Australia and New Zealand, which differs significantly from the US and Asia. It’s unclear or maybe too soon to tell whether there is a distinctly Kiwi flavour of governance.

“There is certainly a uniquely New Zealand element to iwi governance. Good governance is ultimately a framework for making good decisions, and there is inevitably a cultural element to that. Interestingly, two of the most commercially successful iwi, Tainui and Ngai Tahu, have implemented structures for the management of their assets that would be considered good practice in any large corporation – and they are clearly benefiting from this.” Chivers says the IoD sees a need for a stronger competency validation framework building on the existing accreditation regime, widening and deepening the range of professional development available, and ensuring that there are effective toolkits to meet the needs of SMEs and NFPs. He says historically directors have not had a strong voice. “When it comes to the Financial Markets Conduct Bill, which will have a material impact on the role of directors, it’s important that directors are held to account but without impinging on normal business risk-taking. Issues around insurance and director remuneration are part of that balancing exercise.” Improving diversity around the board table is another key focus for Chivers: diversity of thinking, approaches, perspectives, life experiences, and skills. “Research is clear that diversity improves quality of decision making and financial performance. “As part of that mix we are keen to see an improvement in the number of women serving on NZX top 100 boards – that’s the rationale behind the launching of the Mentoring for Diversity programme. We strongly believe there are capable women ready and able to serve on these boards. It’s not about making up numbers – no one wants that. Women want to be there on merit, and boards want skilled people to diversify thinking and improve decisions.” The IoD’s new CEO says that ultimately, there is no substitute for dedicated directors, with high professional and ethical standards, who have a passion for the business and are relentlessly focused on performance.

The Institute of Directors (IoD) promotes best practice in corporate governance, represents directors’ interests and encourages their professional development through education and training. It is a membership organisation of over 5500 individuals drawn from the spectrum of New Zealand business, from the public and private sectors. Services include: • BetterBoards – an online board appraisal tool to help evaluate and develop boards, chairmen, directors and chief executives • governance advice and review • DirectorSearch – an impartial and professional director recruitment service, balancing skills and competencies of potential candidates with those of existing board members • not-for-profit director vacancies – cost effective access for not-forprofit and charitable organizations to advertise board vacancies to members • director remuneration advice • annual director remuneration survey. Only members can register on the board appointments database and be identified to organisations as candidates. Director Development: Courses to suit all levels of governance experience, from entry level (Governance Essentials) to training senior directors looking to take on the chair’s role. Courses cover everything from strategy and leadership to assessing and managing risk. • For more information: www.iod.org.nz or ph: 04 499 0076

November 2011 | THE DIRECTOR |

The challenge of

Choosing the CEO

Choosing a chief executive is a board’s single, most important task. The choice can make or break the enterprise. And new global leadership competency trends are making the selection of the best person for the job harder for Australasian boards. Reg Birchfield talked to Signe Spencer, a senior principal at Hay Group’s McClelland Centre for Research and Innovation, and Nicholas Conigrave, associate director of Hay Group Pacific about some of their recent research findings.

oards and chief executives need to be more flexible, adaptable and to be constantly thinking and re-thinking their strategies if they want to succeed in today’s increasingly complex global marketplace. That means boards should put more effort into understanding the new leadership competencies required of effective chief executives. They should know where their organisation is

68 |

THE DIRECTOR | November 2011

headed and how they plan to get there before they recruit a new CEO. “Boards should understand their strategy, where they are taking the enterprise, where they want to be, what their challenges are and what competencies they are looking for in a CEO before they hire him or her,” says United States-based Spencer. “They should map and match the individuals’ particular characteristics against what the organisation needs.”

Some boards know what they are doing. Many, however, are “all over the map”, according to Spencer. It is not uncommon for Australasian boards to think their directors are strategically aligned, according to Sydney-based Conigrave. “But when asked to articulate what they mean by strategic intent, there is significant divergence in comprehension. Board thinking converges when there is good dialogue, but

they don’t have a common understanding as often as they think.” Companies are now dealing with greater organisational and market complexity. Boards, therefore, need to adopt more multi-faceted strategies to meet increasingly diverse stakeholder and performance demands. A return to shareholders, for example, is increasingly just one of many factors directors and CEOs must deliver on. “Shareholder return is a price for entry, not a ticket to success,” says Conigrave. “Organisations are simultaneously pushing for strong business performances and social responsibility and community-based obligations and outcomes,” adds Spencer. “The trick now is to learn how to integrate these different considerations and to lead with a purpose without annoying shareholders.” Spencer has been researching the leadership qualities that boards should consider when they go to the market for a new CEO. She has, for example, co-authored a major Hay Group study on what western enterprise can learn from India’s CEOs. The study showed that outstanding Indian CEOs have a powerful set of specific competencies. The strengths lie in their socially responsible business acumen, team leadership, “inner strength” and ability to manage a complex web of external stakeholders. Spencer thinks western leaders need to look more carefully at what trends are emerging, particularly in Asia. “CEOs and senior executives must be more collaborative and less authoritative,” she says. “They must listen to, and take on board other view points. They must also be able to handle the diversity of stakeholder interests, make connections and understand the entire range of the organisational value chain. It is more about breadth of perspective than depth of

knowledge, though CEOs still need to know something well to get there.” Spencer thinks the competencies boards should be looking for in CEOs are entirely compatible with women. But she concedes there are men who are very strong on these competencies just as there are women who are not. There are few signs yet, however, that these new competencies are driving boards to appoint more women to CEO or senior management positions. “I think they are too new to have had much impact yet,” she said. “We only started seeing this change and trend in 2004. In terms of the life of business, that is nothing.” The global talent shortage, however, means boards can’t any longer afford to ignore half the world’s working population, says Spencer. “Boards need to understand the new competencies and skills required to successfully lead businesses in tomorrow’s world and, that includes gender and other diversities.” The problem with many boards, according to both Conigrave and Spencer, is that they generally don’t know what they don’t know. And because the composition of most boards in Australasia is predominantly male, white and over 50 it is, says Conigrave, “pretty difficult for them to see success in any other guise than their own image”. Boards increasingly need their preconceptions about what constitutes success challenged to keep pace with future governance demands. The emerging new leadership competencies identified particularly in India are, says Conigrave, a reflection of the global power base shift from western economies to Asia. “If we don’t build leaders and organisations to compete in markets that reflect this new world order, we will have major economic problems. If our boards and senior executives

Signe Spencer: “CEOs and senior executives must be more collaborative and less authoritative.”

Andrew Conigrave: “Shareholder return is a price for entry, not a ticket to success.”

don’t have these competencies they won’t get it and know how to deal with these countries. “Too many Australian and New Zealand companies tank when they try to do business in countries like India because they have not made the effort to understand and adapt to the differences. Australasian boards need to understand the relevance of the competency shifts our research is throwing up,” he adds.

Contact Carrie Hobson or Stephen Leavy Auckland Office T +64 (9) 379 2224 PO Box 362, Auckland 1140 Level 3, Shortland Chambers, 70 Shortland Street, Auckland 1140

Wellington Office

www.hobsonleavy.com Hobson Leavy MGT0910.indd 1

T +64 (4) 460 5244 Level 16, Vodafone on the Quay, 157 Lambton Quay, Wellington

17/8/10 10:21:09 AM

November 2011 | THE DIRECTOR |

The Governance Myth: Size matters New Zealand’s SMEs are this country’s greatest potential economic resource, says Jens Mueller. To grow, they need to accept the advice and support of knowledgeable and experienced board members.

hink for a moment of the friends you know who run a business – possibly a quite successful and expanding one. Then reflect on the look they give you when the word ‘governance’ comes up in conversation. “Governance,” they say, “is for big business – I’m not running Telecom. It’s expensive, disruptive and unnecessary for smaller entities.” The thought processes are etched all over their faces. Leading large and small business is, I think, a little like flying a plane. A 340 Airbus flies itself, almost. As a former pilot colleague and friend who captains one of these monsters on the Hong Kong to Auckland run admits – “it’s not much fun – just boring accounting work. The plane knows best how to fly itself.” For the hobby pilot of a Cessna, it’s a different matter altogether. Flying at 10,000 rather than 35,000 feet, in bad weather and in an aged aircraft, requires very different skills and mindsets. Like today’s monster aircraft, our largest organisations are equipped with a formidable set of resources and management skills. When they require a reality check, there are board directors, advisors, or dozens of bright senior management staff, who smell smoke before the fire takes hold. In most cases, they act to avert disaster. For the business with four to 10 employees it’s harder. Everyone works hard every day. By the end of it, most bosses want to kick back, spend time with their family reflecting,

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if at all, that a busy day means something has been accomplished. Nothing, unfortunately, could be further from the truth. The thousands of small to medium size businesses (SMEs) that could but don’t grow from $1.5 million to $50 million, are this country’s greatest potential economic resource. And all most of them would need to grow is a proper long-range plan and the support of knowledgeable and experienced board members or advisory board members. I accept that in an owner-operated business

it is hard to step back and look at its performance through the independent eyes of an outsider. Instead, these leaders excuse their own errors, explain their mistakes and go happily to sleep knowing they are good people and trusting that tomorrow will be a better day. The approach is not good enough. Owners and employers owe all employees, even those in the smallest firms on the highest mountains, the opportunity to grow and learn. They also owe themselves and their (family) shareholders the chance to sell the business at a good capital gain

“don’t need an outsider to teach them to suck eggs” to feeling good about having a range of “knowledgeable people around who constantly help shape my thinking”? Resistance to change is more often than not rooted in myth. Myths about governance run particularly deep. Here are three of them.

Jens Mueller.

in the future. And they owe the community the vibrancy of a thriving business that teaches, consumes, networks and demonstrates community pride through success. It is not really acceptable to simply circle the wagons around an internal resource. Isolationist strategies in the swirling world of power and knowledge reduce the firm’s ability to learn, chart a course beyond the obvious and create greater than average value. But how to cross the Rubicon? What might help SME leaders to move from believing they

1. Governance is expensive It’s not. What can be expensive is not having the best advice. Everyone knows someone with superior and particular skills and who are not family or close friends. Generally they are happy and honoured to be asked to become members of an advisory board and chat every two to three months about the direction of the business. Money is seldom the issue. Being invited to join an advisory board is an honorific. It looks good on the CV and builds their skills too. 2. Outsiders take too long to learn the business Of course – but they aren’t there to run it. They don’t need to know the details of your operation. They are there to ask questions and prompt new and innovative responses. They are there to help steer, not row the boat. Senior managers develop skills that are transferable. It’s about being interested and understanding the principles of running a good business. It’s also about sharing valuable experiences.

3. The board might take over Unlikely. Shareholders own the business and control the board. Directors serve on the shareholders’ invitation. Their presence is earned not gifted. But spirited debate draws out the best contributions from around the table. When the smoke clears, there is more often than not a unanimous decision to move forward. Good people do not wake up every morning and think: “Whose life can I make miserable today?” They want to make a genuine contribution and feel appreciated for their input. Leaders who think they don’t need anyone from the outside to banter with, exchange ideas with or debate challenges, are telling both themselves and their stakeholders that they alone are the brightest individual in the universe. Maybe they are – but the odds are against it. There are many capable people around willing to contribute for the sake of engaging. They are less concerned about creating personal financial windfalls. How hard is it really to harness this power and open the corporate door a crack and let advice and commentary enter so that planning and forward motion accelerate? Professor Jens Mueller is a governance expert at Waikato Management School. He sits on the boards of several multinational firms and works with many New Zealand businesses to develop sustainable governance strategies. M@usainfo.net www.muellerjens.com

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NOVEMBER 2011 | THE DIRECTOR |

Governing is not easy It is, to paraphrase Kermit the frog, not easy being a director. Ron Scott, author of the recently published book, The New Director, explains why.

irectors fees increased by 4.9 percent in the past 12 months according to a recent survey by Strategic Pay. The main reason is that directors face risks. The Companies Act 1993 sets out the responsibilities of a company director. Whether one is a director of a one man band or of the largest listed company in New Zealand, the legal responsibilities are the same. Every director must ensure that he or she complies with the Companies Act, the Tax Administration Act, the Income Tax Act, the Goods and Services Tax Act, the Financial Reporting Act, the Resources Management Act, the Health and Safety in Employment Act and the Commerce Act. Many don’t of course. Running corporate governance programmes is, in part, what I do. In my experience it is a rare day when everyone in the room is aware that they need to know the location of their share register or that they need to have the minutes of all board meetings for the last seven years handy. The maximum fine for not knowing these things is $10,000. Few directors of smaller entities sign a certificate every time they pay themselves certifying that the company will still be solvent after the payment. That attracts a $5000 fine. Most of the time these things don’t matter – so long as things are going well no one asks questions. But times are now tough and enterprises fall over. Liquidators then look for a return to the shareholders and creditors and recently redundant employees may want to “get their own back”. Customers, on the other hand, would

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prefer not to pay their bills. Suddenly you need to know that you and the other directors have done the job and lived by the rules. You must rely on your fellow directors. Are they to be trusted to hang together like the Feltex Five or, will the team break up as in the Five Star Group? In that case two of the four directors pleaded guilty to offences and have been sentenced to imprisonment. The others are trying to prove innocence through the courts. It is little wonder that people talk about the Old Boys Network. Is there one? Of course! You need to trust the person sitting next to you. Decisions made around the board room table are joint decisions. Even if you are outvoted by your fellow directors you are jointly responsible. If you don’t trust them to make good decisions then you are at risk of serious nervous health issues. You need to know that if a decision turns to custard the board will stand together and take the heat. You need to know that one of your board members won’t suddenly pretend that they knew all along that something was wrong and blame everyone else. So who do you trust? Someone you have known for a long time. Someone you would expect to have the same commitment to your values. Someone you knew at school or someone you have worked with on other boards. It is a brave person who takes the risks of corporate governance with a stranger. Diversity is all very well but, what if the individual is so different that we can’t trust them? How do we know that they have similar values?

If you are trying to start a career as a professional director you must demonstrate that you are trustworthy. You need to demonstrate that you understand the risks to which you and your fellow directors are being exposed. You need to demonstrate that you will add value around the board room table, not only through the skills you have but also because you have great networks and view things differently (and positively) and are trustworthy. You must prove that you will keep confidences and not tell everyone of your boardroom discussions. How do you prove these things? By being active. Get to know potential personal advocates on a board. Read the trade journals so that you recognise and can talk the industry jargon. Turn up to functions where people who know people hang out. Tell people you are interested in being a director and which industries interest you. My book explains more of the strategies and success secrets to starting a successful career as a professional director. You need to know what you are doing to be inside the network of those asked to join a board. One day a group of directors will be discussing who to appoint to replace a retiring director. The conversation will cover many questions: We need someone we can trust. Someone we know. Someone who has our values. Someone we can talk to. Someone who speaks their mind but doesn’t tell all and sundry about closed door conversations. Your name will pop up because you have demonstrated all these attributes. And someone will say: That person understands that it is not easy being a director. Ron Scott is managing director of consulting company Stellaris. www.stellaris.co.nz

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