Management August 2010 by mediaweb

NZIM’S FOCUS ON MANAGEMENT P55

In this issue:

PAGE 30

Wanted:

WANTED: GREAT NZ LEADERS

Great NZ leaders Caring CEOs of the future p34 The curse of the overachiever p38 Shipley’s ‘escalator’ for women p43 Tobacco whistle-blower on Kiwi ethics p48

AUGUST 2010

AUGUST 2010 $6.95 INCL GST

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INSIDE

Deloitte/ Management Magazine

TOP 2OO

AUGUST 2010 • Vol 57 No 7

A Bold Spirit

30 COVER STORY

Understanding the new world

Wanted:

Great NZ leaders THE TOP 200 CAMPAIGN

EDITOR’S LETTER

This year’s Deloitte/Management magazine Top 200 Companies campaign, ‘Understanding the New World’, examines six major contemporary issues and opportunities for business. This month, an analysis of leadership issues.

IN TOUCH: News & Views

FOCUS

ON THE MOVE

EXECUTIVE DEVELOPMENT

VOICE: Phone the future, ET

NZIM: Bounce the bonus Reg Birchfield

JUST GOOD BUSINESS

WHAT NZ NEEDS FROM ITS LEADERS

CASE STUDY: The cost of disability Vicki Jayne

New Zealand is rich in potential, says Reg Birchfield. But it does not have the leaders required to realise that potential. He has been talking to top Kiwi leaders about where New Zealand is weak and how we need to grow.

SUSTAINABILITY: Business saving the planet Peter Neilson

OPINION

BOOKCASE Reg Birchfield, Brenda Ward

POLITICS: What style is our leader? Colin James

AS I SEE IT: Luke Dallow

ECONOMICS: It’s a question of management Bob Edlin

ADVICE

HEALTHY LIFESTYLES: Under the knife Peter Tynan

DIRECT MARKETING: New ways to engage Fiona Woolley

TOP TIPS: Ten things to learn about Facebook Linda Coles

FEATURES 34

LEADERSHIP: CARING CEOs OF THE FUTURE The new business world is becoming so fast and so complex, the job description of a leader has had to change. Brenda Ward asked the experts what you need to succeed.

LEADERSHIP: THE CURSE OF THE OVERACHIEVER If you believe too many executives think, “It’s all about me”, you’re right. Research shows that an ethos celebrating individual achievements has been shoving aside other motivations, including empowering people, say Hay Group Boston’s Scott W Spreier, Mary H Fontaine and Ruth L Malloy.

LEADERSHIP: CEOs STRUGGLE TO COPE Many CEOs feel inadequately equipped to deal with the complexities of modern business.

LEADERSHIP: A MAN OF PASSION The young people who will follow our leaders into society give inspirational Kiwi Graeme Dingle confidence in New Zealand’s future. Brenna Cukier, 17, interviewed him.

LEADERSHIP: ESCALATOR WOMEN How can women move to the next level in management? Dame Jenny Shipley tells Brenda Ward about an exciting new initiative from Global Women.

LEADERSHIP: ENERGY TO BURN Young engineer Brett Christie has gathered 3000 young professionals into networking groups around the country – and this overachiever still finds time to be a fitness instructor. Janine Ogier is amazed.

SMART COMPANY: A BIG FISH IN THE POND Daniel Robertson was a university student when he launched an online book retailing company. It’s now turning over $50 million a year, proving that a small Fishpond can swim in a big net, says Brenda Ward.

FACE TO FACE: JEFFREY WIGAND – ‘DON’T CALL ME A WHISTLE-BLOWER’ Just how different is Jeffery Wigand from the character Russell Crowe played in The Insider? Reg Birchfield found that the man who exposed tobacco’s deadly governance practices is even more heroic in real life.

EDUCATION: THE RIGHT SCHOOL Private schools are no longer the sole domain of the wealthy and privileged. Those involved in the industry say they are an important way to exercise choice in education.

NZIM’s FOCUS ON MANAGEMENT Young Executive of the Year – looking for that wow factor; Regional News; Member comment: Phil Ker FNZIM, chief executive, Otago Polytechnic 48

In a perfect world, your business would fund itself. In the meantime, talk to us.

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And we’ve been recognised for our eﬀorts by industry specialists Peter Lee Associates, who awarded us ‘most trusted advisors’. To add your business to that list, speak to one of our relationship managers today.

anz.co.nz ANZ National Bank Limited was Rated No. 1 for ‘Most Trusted Advisors’ in the Peter Lee Associates Large Corporate and Institutional Relationship Banking New Zealand Survey 2010. Conducted from February to March 2010. Copies of any applicable disclosure statements prepared under the Securities Markets Act 1988 in relation to ANZ and any relevant staff, are available on request and free of charge. ANZ National Bank limited. ANZ0301MMA

EDITOR’S LETTER

Wanted: Great leaders Jane McCann of Thought Partners consultants tells me she’s clocked CEOs completing 300 transactions before morning tea each day. We may be answering the emails and going to the meetings, but how are we shaping up as leaders? The statistics tell a worrying story. The first blow was the government-sponsored research Management Matters which told us our managers were consistently underperforming and were merely ‘middling’ (‘Oops – our slip is showing’ – July issue). Then IBM’s latest global CEO study (page 41, this issue) shocked us again. It told us more CEOs in New Zealand and Australia than anywhere else in the world admit they aren’t ready to cope with the complexity of modern business. When associate professor Roy Stager Jacques of Massey University’s management department told me he’s observed that much of Kiwi business culture has not yet realised the importance of the fact that people are not machines, (‘Caring CEOs of the future’, page 34) I thought it was time to re-evaluate leadership and what it means in the modern world. So for the third part of our Top 200 campaign ‘Understanding the New World’, we’ve themed this issue on what it means to be a great leader. It’s become clear that there are some fundamental changes happening in workplaces that require a new kind of leader and a new kind of direction. Words like ‘caring’, ‘transparency’, ‘spirituality’ and ‘authenticity’, which would seldom have been heard in business a decade ago, are common now I found as I researched how leadership is changing. And I discovered a whole new area where CEOs can damage workplace morale and productivity – by overachieving, as Hay Group’s researchers found in ‘The curse of the overachiever’, page 38, reprinted from the Harvard Business Review. If you’re a leader in New Zealand today or if you aspire to be one, there’s lots in this issue to make you stop and think. I hope it helps you consider new ways of leading people into this new and challenging business environment as we prepare to take New Zealand to the next level.

www.management.co.nz A MEDIAWEB MAGAZINE EDITOR Brenda Ward 09-575 8830, editor@management.co.nz CONTRIBUTING EDITOR Reg Birchfield reg@rjmedia.co.nz CONTRIBUTORS Linda Coles, Brenna Cukier, Bob Edlin, Mary Fontaine, Colin James, Vicki Jayne, Ruth Malloy, Peter Neilson, Janine Ogier, Scott Spreier, Peter Tynan, Fiona Woolley ADVERTISING MANAGER Clara Iqbal 09-271 3711, 021-930 887, admanager@management.co.nz DESIGNER Rachel Walker COPY & WEB EDITOR Gill Prentice PRODUCTION MANAGER Fran Marshall franm@mediaweb.co.nz NEW SUBSCRIPTIONS www.management.co.nz/subscribe SUBSCRIPTION ENQUIRIES subs@mediaweb.co.nz

Brenda Ward, editor

Phone 09-845 5114, Fax 09-845 5116 enquiries@mediaweb.co.nz www.mediaweb.co.nz PO Box 5544, Wellesley Street, Auckland 1141

Deloitte/ Management Magazine

TOP 2OO A Bold Spirit

NZ MANAGEMENT magazine is independently owned by Mediaweb Limited and is published 11 times a year. It is the officially recognised magazine of the New Zealand Institute of Management Incorporated. Editorial material does not necessarily reflect the views of NZIM. Copyright © 2010: Mediaweb Limited. All material appearing in NZ MANAGEMENT is copyright and cannot be reproduced without prior permission of the publisher. Editorial contributions are welcomed. Letters to the editor are also welcomed, but pen names are not acceptable. NZ MANAGEMENT is printed by Benefitz. Subscriptions: One-year NZ subscription (11 issues)

$76.45 (GST incl). Overseas (airmail only): Australia $NZ130; rest of the world $NZ250. Enquiries: Mediaweb Limited, PO Box 5544, Wellesley Street, Auckland 1141, New Zealand. Phone: 09-845 5114, Fax 09-845 5116, enquiries@mediaweb.co.nz www.management.co.nz New Zealand Institute of Management enquiries to: National Office, Box 67, Wellington; Northern, Box 26001, Epsom; Central, Box 11781, Wellington; Southern, Box 13044, Christchurch. Vol 57 No 7 • ISSN 1174-5339 (Print), 1179-3910 (Online)

AUGUST 2010 Management www.management.co.nz 5

intouch REPUTATIONS ON THE LINE There will be some surprises when results of a comprehensive study of New Zealand’s most reputable organisations is published in the September issue of NZ Management magazine, says the study coordinator Reg Birchfield. The survey of the organisations that managers and directors perceive as our most reputable was conducted by NZ Management in conjunction with global management consultancy firm Hay Group. Birchfield says the New Zealand findings reveal the name of our single most reputable organisation and

Reg Birchfield... a wealth of material on what makes companies reputable.

the identities of our most reputable companies, state-owned enterprises, government departments and notfor-profit organisations. The five top choices and one winner will be named in each category, with the overall winner of the most reputable organisation drawn from these. Ian MacRae, managing director of Hay Group NZ, says the New Zealand survey has been modelled on the iconic Fortune magazine ‘World’s Most Admired Companies’ survey which Hay Group helps the magazine put together annually in the US. A similar

Ian MacRae... response to New Zealand survey exceeded expectations.

6 www.management.co.nz Management AUGUST 2010

study was conducted in Australia for the first time last year. MacRae says Hay Group has been delighted with the response rate to the New Zealand survey, which has exceeded response rates achieved for this kind of survey elsewhere. “The quality of the responses was also excellent, with 70 percent of respondents classified as chairs, directors, CEOs, general managers, partners or executives. The remaining 30 percent were other managers or organisational leaders. There is no question that the quality of the response makes this a robust piece of research and bodes well for the future of the survey in New Zealand.” Birchfield says the comments of participants also unearthed a wealth of material on why organisations were chosen. “We’d like to thank all those who responded to the survey for the time and effort they put into it. The end result is a very good overview of what makes organisations reputable in the eyes of their peers.” Participants were canvassed on 12 reputational factors. “Strong and effective leadership was something that ranked highly in responses,” says Birchfield. “It is one factor that seems to have a significant impact on leaders’ assessment of other organisations’ reputation.” The findings of the survey along with interviews with category finalists and winners will provide the basis for a comprehensive feature that NZ Management will be running in its September issue as part of a focus on brands. M

CHECK IN AND WIN

Sachie Nomura-Siu.

Sachie’s sushi.

SUSHI BONDING An Auckland woman is offering the hottest new trend in executive teambuilding – Japanese cooking classes. Sachie Nomura-Siu says cooking together is a great way to build team bonding and get to know colleagues or clients better. And you can eat the results. “It’s not intimidating and much more appealing than climbing trees or sitting in a restaurant – and it’s really creative, a great way to give the analytical brain a break.” The Auckland-based Japanese-born chef says there are always lots of laughs

THE BUSY CEO Today’s leaders are having to cope with a phenomenal volume of transactions in comparison to their predecessors. Thought Partners’ Wellingtonbased director Jane McCann says in the 1980s research clocked leaders completing 100 transactions a day – mainly phone calls, letters, faxes, or meetings.

Sachie’s cooking class.

in her classes, as students discover rolling your own sushi in seaweed wrap is not as easy as it looks. For every class at Sachie’s Kitchen, the owners donate a meal to a hungry child through Nourish the Children. By mid-June, they had fed 53 children. M On the web: www.sachieskitchen.com.

“In the 1990s, I clocked leaders doing 200 transactions a day – mainly email. But now, I’ve found the 21st century leader can be doing up to 300 transactions before morning tea time.” McCann has discovered that most CEOs spend 85 percent of their days in formal and informal meetings. So the time that remains is valuable. “Also

Most organisations have a formal review process in place for monitoring staff ’s progress. However, it is important that staff wellbeing is checked more regularly than this, argues Auckland-based business coach Jhanna Culver. She recommends monthly individual ‘check-ins’ of around 15 minutes only. Culver says this enables managers to be consistently in the loop and on the pulse of staff’s performance – their successes, challenges and outlook. “You know exactly what your staff are working on and what they are planning to work on next,” she says. “You have monthly opportunities to know what is challenging, enjoyable, successful, and even their current learning and development needs.” Culver says the rewards of being up-to-date for a manager are being able to act in the moment and nip issues in the bud to prevent any further trouble brewing. It also provides a substantial base for any pending ‘official’ performance review. She says there may be a few employees who feel micro-managed or defensive about the process, but the majority of staff will feel noticed and value the time invested in them. “Accordingly, you’re laying a solid foundation for an increase in productivity and ultimately, if your staff are on track, you’re on top of a significant proportion of your work.” M

you’ve got to make a meeting matter and it’s got to happen with speed.” McCann says communication skills are crucial in a business world run mainly in open-plan offices, where leaders are expected to be more accessible than ever before. M Caring CEOs of the future, page 34

AUGUST 2010 Management www.management.co.nz 7

STARK LEADERSHIP INSIGHTS One of the world’s most comprehensive studies of leadership and leadership development will show whether confidence in our business leaders is continuing to slide. NZ Management magazine has joined forces with global HR consultancy Development Dimensions International (DDI) to present the 2010/2011 DDI Global Leadership Forecast which will have its own New Zealand and Australian section. Christien Winter, director of Sheffield, which is the exclusive licensee for DDI in New Zealand, says the comprehensive survey will point the way to best practice in leadership development and management innovation. It builds on significant trend data and findings from five previous bi-annual DDI Leadership Forecast studies. The 2008/09 survey had more than 14,000 leaders and HR professionals participate across 76 countries and provided some stark and sobering insights on leadership practices and trends, says Winter. “The 2008/09 survey identified a dilemma for leaders the world over. On the one hand, 75 percent said that improving or leveraging talent was their top priority. But on the

other, less than half the leaders in the survey said they were satisfied with development opportunities they were provided with.” A concerning outcome of this lack of quality development programmes is that the crucial transition from one level of leadership to the next is too often a failure, Winter says. DDI’s research shows many people who move into strategic roles aren’t prepared for the changes and demands involved. “As people move into more complex strategic roles, they’re no longer leading teams, they’re leading leaders so this requires a real shift – not only in how they need to think about the organisation and its requirements, but also in how they execute their responsibilities. The competencies for success shift and change. Organisations that enable staff to transition seamlessly spend a lot of time preparing them.” Successive DDI surveys have also shown that confidence in leaders has been steadily declining over the past decade. This is a worrying selfreported trend, suggesting that leaders are not meeting the current and future anticipated needs of their organisations, says Winter. It is of particular concern in New Zealand where lead-

PARTICIPATE NOW The research phase of the DDI Global leadership Forecast is now underway. As the exclusive licensee for DDI in New Zealand, Sheffield and New Zealand research partner, NZ Management magazine, encourage you to participate, and help make an impact on leadership thinking and future development. All levels of managers working in organisations with more 50 employees are invited to participate in the survey. The extensive global report and Australasian regional reports will be available for all New Zealand participants. In addition, participants can receive a customised organisational benchmark report when more than 30 leaders participate from their organisation. This report will provide an overview of how your organisation’s HR and leadership practices stack up against global findings. To participate in the survey visit http://tinyurl.com/238qvby

8 www.management.co.nz Management AUGUST 2010

Christien Winter… the crucial transition from one level of leadership to the next is too often a failure.

ership talent shortages continue to be an issue. “Has the recession finally provided the impetus for organisations to review the effectiveness of their development offerings, and make meaningful change? We hope the answer will be ‘yes’, but we have our doubts,” Winter says. “Organisations continue to demonstrate a reluctance to build a learning culture – despite all the evidence that shows that businesses that endure are those that learn and continuously evolve.” Winter believes that with the economy at a low point, organisations must innovate and reinvent themselves. Understanding the best ways to do this will be a key aspect of the 2010/11 Leadership Forecast. DDI has partnered with US professor Gary Hamel, a specialist in management innovation, to include an innovation section that will explore systems and processes that differentiate traditional from progressive cultures. M See also: What New Zealand needs from its leaders, page 30.

CASH CALLING! For the first time in New Zealand, mobile phone users will be paid for their old and unwanted handsets as part of an innovative phone recycling and recovery scheme. Money4Mobiles.co.nz aims to fully recycle as many mobile phones as possible within New Zealand, and give corporations and individuals the chance to put extra money in their pockets and help the environment too. The phones recycled within New Zealand will be on-sold to emerging and developing nations including India,

Russia, South America and China. “There are around 1.8 million unused mobile phones gathering dust in cupboards and drawers within New Zealand alone,” says Money4Mobiles. co.nz director John Wilson. “Money4Mobiles.co.nz encourages both individuals and businesses to send in their old mobiles for recycling and eventual sale to emerging and developing countries experiencing high demand for mobile phones.” Users will be given a price based on their input. Prices start from $1 for old phones and go up to $512 and payment will be made within five working days.

Old mobile phones that would have been junked can be reused or used for parts.

The company aims to recycle 75 percent of all phones received. M

GREEN DATA A new data colocation facility in Christchurch has reduced business costs with its power-saving cooling technology. Jamie Cairns, a director of The Colocation Company, says the centre’s powersaving cooling technology makes it much more affordable for users to locate servers and ICT equipment on the site. The Christchurch facility uses the ambient air temperature to cool water

Ian Falconer, general manager of The Colocation Company.

in closed-circuit pipes, enabling microclimate control for each of 14 data pods. “This free-cooling enables us to operate more than 80 percent of the time very economically and with greatly reduced energy demand. Clients pay for the electricity to run their gear, but avoid high cooling costs often incurred in older centres,” Cairns says. Even the building is recycled. The former Lane Walker Rudkin clothing factory in Sydenham was turned into a centre for The Colocation Company as part of a multimillion-dollar project by the founders of Snap Internet. Cairns says Snap, the TUANZ 2009 internet service provider of the year, is one of the centre’s first clients, along with local ICT integrator Computer Concepts and other high-profile local hosting and service companies.

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“At $0.61 per kWh consumed, the cost of locating equipment in our facility is simple, transparent, and scales well,” he says. “But this is not just about lowering costs. We’re aiming to create an ICT equivalent of a farmers’ market. Once a company is in the facility, it will be able to subscribe to services offered by providers at the location with very cheap connection costs. These could be internet, security, backup, integration or voice service providers, to name a few.” The Colocation Company’s manager, Ian Falconer, says there is capacity for 224 racks in 14 self-contained pods, each with individual air temperature and humidity controls. “Each pod houses a client’s network, server and storage gear in a totally protected state from below 5kW rack density up to 30kW.” M

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

AUGUST 2010 Management www.management.co.nz 9

executivepulse PROFITS-ONLY APPROACH RUNS DISTANT SECOND Only 17% of senior New Zealand business decision makers favour a profitsonly role for their organisations. Some 75% believe business should generate profits, but balance that with contributing to the broader public good. Generally speaking, which of the following best describes the role that businesses should play in society?

Job ads attracted interest at the expo in Manchester.

BRITS HEAD DOWN UNDER Skilled Brits have been queuing to get into an expo on immigrating to New Zealand. By the time the doors opened at the Opportunities New Zealand Expo in Manchester late last month there was already a long queue, says Kylie Barker, marketing manager of Working In, the company organising the event. Working In was set up in 1998 to help people find out about new opportunities down under and to help overseas Kiwis return home. The expo moved from Manchester to London the following week. Final visitor numbers are yet to be released but on-line ticket pre-sales predicted around 5000 attending. Johannesburg will be the next city to welcome the event, on September 18 and 19. The British events were a tremendous success for New Zealand employers, says Barker. “They attracted highcalibre migrants with the skills that New Zealand needs. “Nearly a third of the

visitors who said they intended to move to New Zealand held a Bachelors degree, and 17 percent held a trades qualification. Additionally, 17 percent of the migrants had a Masters or PhD. “Visitors to the expo were more than just curious about New Zealand, rather they were fully committed to making the move,” says Barker. Two-thirds of visitors said they would move within the next 12 months, and a quarter believed their move would happen within the next one to two years. Working In’s director Hayley Roberts says: “The impact of the recession is still being felt in the UK and our expos show that people are more interested than ever in moving. Skilled migrants consider New Zealand a prime destination, for its lifestyle and opportunities.”

10 www.management.co.nz Management AUGUST 2010

On the web: www.expo-newzealand.com

All

Business decision makers

Focus solely on providing the highest possible returns to investors while obeying all laws and regulations

15%

17%

Generate returns to investors but balance with contributions to the broader public good

75%

Other

11%

Source: ShapeNZ nationwide survey June 17-July 7, 2010. 2094 respondents including 520 business decision makers (managers, proprietors, self employed, professionals). Weighted to represent the national population. Maximum margin of error on the national sample +/- 2.2%. Shape NZ is operated by the NZ Business Council for Sustainable Development. On the web: www.shapenz.org.nz and www.nzbcsd.org.nz

focus LEADERSHIP NZ CAFE SERIES: Members and alumni of the Leadership NZ programme met for a Cafe Series event in Auckland on July 14, on the Generation Gap. 1 Vicky Pond Dunlop of Leadership NZ (left) and Sina Moore (MC). 2 Denise Lazelle (left) and Renee Schick. 3 Speaker Simon Telfer of Springboard. 4 Danielle Fuemana (left) and Chelsea Bracefield. 5 Speaker Marie Hull-Brown (left) and Carron Blom of Anguillid.

GLOBAL WOMEN LAUNCH: Dame Jenny Shipley, Mai Chen and MP Patsy Wong launched The Global Women ‘Women in Leadership BreakThrough Leaders Programme’ at a cocktail party in Auckland on June 30 at Minter Ellison Rudd Watts. 6 From left, Jenny Shipley (Global Women), Joanne McCrae (Deloitte) and Leigh Teece (Mt Beautiful Wines). 7 From left, Susan Wood (SWC), Liz Read (Reputation Matters) and Pam Tregonning (South Auckland Health Foundation). 8 Mai Chen (Chen Palmer). 9 From left, Michelle Embling (PricewaterhouseCoopers), Bruce Baillie (PricewaterhouseCoopers) and Wendy Pye (Wendy Pye Publishing). 10 Chris Caldwell (Fonterra), Sally Doherty (Microsoft) and Joanne Fair (Fonterra). 11 Pansy Wong (MP).

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AUGUST 2010 Management www.management.co.nz 11

on the move

Tony van Camp.

Nicola Bilbrough.

MARILYN WRIGHT

Kensington Swan has promoted Wright to senior associate in its corporate and commercial team in Auckland. She advises on all aspects of corporate and commercial law, with an emphasis on mergers, acquisitions and restructures. LISA NEIL

Neil joins Project Plus as a senior consultant. Her experience includes government, telecoms, transport, banking, reLisa Neil. tail and construction from the UK and NZ. Most recently she was senior projects adviser at the Department of Labour. RICHARD KLEINERT

Deloitte has announced the relocation of Kleinert as leader of its New Zealand and AsiaPacific human capital consulting practice teams. Kleinert, who will be based in Auckland, was previously a partner with Deloitte Consulting in the United States, where he held a number of industry and geographic leadership roles. PETER WALES

Wales has joined the executive management team of Canon New Zealand, heading up

Andrew McCormack.

Richard Valintine.

both the finance and credit functions dit control functio in the role of assistant general manager – fi nance. He was most recently commercial manager at SmartPay. TONY VAN CAMP

Bayleys Auckland has appointed van Camp to head a new company sales division which will focus on the sale of medium to large scale businesses. For the past four years he has been a business broker for Auckland company Sales & Acquisition and has been involved in the sale of a wide range of businesses. NICOLA BILBROUGH

The New Zealand Institute of Valuers has appointed its first woman president. Bilbrough brings 25 years’ industry experience to the position. She replaces Blue Hancock of Nelson who has held the position since 2007. As president, Bilbrough also joins the board of the Property Institute of New Zealand. MONTIE BASKETT, JO GIBONEY, LOUISE HOLDEN

Buddle Findlay has announced the appointments of three senior solicitors in its Auckland office. Baskett joins the corporate and commercial team; Giboney the financial services team, and Holden the litigation team.

Andrew Sayers.

ANDREW MCCORMACK

New Zealand HR consultancy Clarian Human Resources has appointed McCormack as business development manager. He brings many years of experience in recruitment and placement to the role, having practised in both the UK and Auckland. RICHARD VALINTINE

In his new Auckland-based role Valintine will have responsibility for the professional development of Harcourts’ auctioneers and for training sales consultants in the auction process. He replaces Phil McGoldrick who is auctioneering for Harcourts in Canterbury. ANDREW SAYERS, DONNA HARKNESS

WHK has made two appointments in its Auckland tax consulting division: Sayers as principal and head of the division, and Harkness as associate principal. JOHN VALENTINE

3D business software company Right Hemisphere has appointed Valentine as vice president of engineering with responsibility to lead the research and development team. He was most recently with RHE & Associates, a software development and integration services company. M

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8-9 HOW TO INTEGRATE INFORMATION SYSTEMS AND BUSINESS STRATEGIES. Auckland. University of Auckland Short Courses. www.shortcourses.ac.nz

25 REDUCING WORKING CAPITAL. Auckland. University of Auckland Short Courses. www.shortcourses.ac.nz

For more detailed diary listings, visit Management‘s website www.management.co.nz

CAse study 1

AUGUST 2010 Management www.management.co.nz 13

ADVERTORIAL

Developing skills for work Any employer can tell you about the competitive advantage of an appropriately skilled and ﬂexible workforce. For many employers, ﬁnding and retaining skilled people is an ongoing issue.

he labour market remains tight and there are skill shortages in a range of industries. The dilemma for many employers is that both their existing and potential employees do not have the literacy, language, numeracy or ICT skills needed to keep up with changing demands. Effective performance today requires a complex mix of literacy and numeracy skills. They are needed for implementing production and job schedules; ensuring health and safety requirements are met; estimating quantity and weight, and measuring accurately; and solving problems and contributing in team meetings. Around 260,000 (12%) of employed New Zealanders have considerable difficulties with workplace documents. Another 610,000 (28%) have problems with complex or unfamiliar information, especially when faced with changing demands. These figures include migrants who may have strong technical skills and qualifications, but who do not have English as a first language. It is hard to have a flexible or innovative workplace and to implement change when your employees’ literacy and communication skills are inadequate. It is understandable that errors and rework will occur when employees are asked to measure to “a two mil tolerance” when you realise they do not know that ‘mil’ refers to millimetre, and have no idea what ‘tolerance’ means. The incomplete forms, when employees are asked to report workplace hazards,

are understandable when you realise that many do not know the meaning of the word ‘hazard’ and find it difficult to write more than a few familiar words. The lack of employees’ contribution to process improvement ideas is understandable when you realise that many do not have the communication skills needed to present their ideas. Katherine Percy, CEO of Workbase, a not-for-profit organisation that specialises in improving workplace literacy, says people underestimate the importance of literacy. “You can’t expect people to be able to understand how to operate new systems or software if they can’t read the technical documentation, if they don’t understand the instructions they are given, or if they can’t make themselves understood with their colleagues. “The skills needed in workplaces are changing, and employees more and more need to be able to learn new skills and adapt to new work environments. Literacy and numeracy are part of the basic tool set all employees need to ensure they can meet their work demands.” Deane Apparel, an Aucklandbased company, provides literacy training for its employees, with funding support from the Tertiary Education Commission’s Workplace Literacy Fund.

Richard Thumath

By up-skilling existing employees, many with English as a second language, the company continues to strengthen and develop its staff, promoting them internally, says Percy. Deane Apparel has reduced recruitment costs, retained and further developed company knowledge and experience, and as a side benefit has seen an increase in employee loyalty. Richard Thumath, former CEO of Deane Apparel, says: “The downside of losing a skilled person is the cost of recruiting and it’s the cost of mistakes new people make as they learn with customers. Those costs just go on and on, much more than people realise. We don’t always get the perfect fit with new staff, so for us it’s better to invest in-house.” Percy says a quote from Alvin Toffler is more relevant than ever: “The illiterate of the 21st century will not be those who cannot read or write, but those who cannot learn, unlearn and relearn.”

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

14 www.management.co.nz Management AUGUST 2010

VOICE

Phone the future, ET The revolutionary new tool in marketing can be held in your hand, say the experts. And you might even make a call from it every now and then. Brenda Ward looks at a smart phone future.

he hottest tool in marketing right now is one you will have in your pocket everywhere you go. And it will offer you a world of information and services you can only dream of right now. Some of the most exciting marketing plans around the world are being based around smart phones, says marketing commentator Michael Carney of Net Marketing. But we have yet to see the real impact of the m-marketing techologies here, he says. “New Zealand has its own challenges,” Carney says. “Our penetration for smart phones is only 20 percent, whereas it’s more like 50 percent in the United States. Right here, right now, it’s not necessarily enough. But it’s a huge growth area and yes, it’s only going to grow.” He predicts that soon all phones will be smart phones with internet capability and GPS, making location-based applications even more exciting. Locally, Subway is about to release a world first for the chain – New Zealand’s first iPhone fast-food ordering application. Direct marketing manager Jo Reynolds explains: “For the first time you can order via an iPhone or iPod Touch – and you can also use a geolocator to tell you where your nearest Subway store is.”

The chain already uses text and internet ordering, which Reynolds says is currently a small but growing part of their business. In the UK, Subway loyalty card holders can also use 2D barcode scanning technology. The application is provided on iPhone, BlackBerry and many other popular handsets. A 2D barcode is embedded within the App and customers scan this at checkout time, to acquire or redeem points. Customers can also see their recent transactions and current points balance. Reynolds says we’re likely to see that here soon too, when the company makes a decision on which scan technology to use. “Subcard customers here are already used to scanning technology,” she says. “We use it for household mailer offers. The iPhone application is the final step.” In the United Kingdom, insurance company Direct Line has a free “On the Road” App for iPhones, which includes a route planner and live traffic updates to help plan journeys around traffic, says Warren Tobin of Altaine. It also features an easy-to-use ‘help

for accidents and claims’ tool, should drivers have an accident. This function enables them to immediately record and store key information, such as the other motorist’s car insurance and vehicle details – including photos of any damage – on their iPhone in a simple step-by-step notebook at the scene of an accident. The details go straight through to the claims team so your claim can be approved quickly. Says Tobin: “The convenience with which customers can request a breakdown service or instantly file a claim – and be guided through the process – compels consumers to engage. These services pull customers towards a brand and engage them with a valuable proposition.” American-born Kevin Ptak of the Auckland Social Media Club says the US is more advanced in smart phone applications; about a year ahead of New Zealand in how mobile savvy their population is, he says. Social media marketing via Twitter, Facebook and Foursquare will build as local smart phone penetration increases, he says. M

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AUGUST 2010 Management www.management.co.nz 15

JUST GOOD BUSINESS CASE STUDY

THE COST OF

DISABILITY She’s intelligent, attractive, a skilled communicator – and she’s visually impaired. Minnie Baragwanath tells Vicki Jayne how her job as a disability adviser has helped people understand the true cost of accessibility.

here are days when Minnie Baragwanath’s usual path to work is beset with difficulties most people would never experience. “Because I live with a disability I see it and get it every single day. I struggle for different reasons to cross roads – if the little audio signal isn’t going, I can just get stuck there on the pavement. It’s cellular. I live and breathe those frustrations…” Born with a rare type of vision impairment that wasn’t formally diagnosed until she was 15, Baragwanath learned early about adapting to a world that kept throwing up new and demanding challenges. It’s what makes her such a passionate advocate for the need to create an environment in which those who experience some sort of an impairment – whether related to mobility, sensory input or intellectual ability – are not excluded from community participation because of it. “People might have an impairment – but it’s the environment that renders them disabled,” says Baragwanath. That’s a message she’s been spreading through a whole plethora of means – whether at local government planning and strategy levels or via conferences, community pressure groups and media – since she was appointed programme adviser, disability, at Auckland City Council Community Services back in 2001. The first person to hold such a role in New Zealand local government, she has had a big hand in helping put disability issues on the map – not just in Auckland but throughout New Zealand. Whether the focus is on planning a major event –

like next year’s World Cup, or daily health and employment issues, the mantra for Baragwanath is 100 percent accessibility. And people are listening. “A lot of it is not about needing to reinvent processes but about getting people to understand why you do certain things and the value of it. Then it’s completely logical. Say a kerb isn’t cut for wheelchair access and because of that, a young person going to a job interview can’t get up it. Well cutting the kerb might cost $200, but the cost to society of that person’s inability to get a job runs into millions. It goes from loss of income and tax revenue to the loss of mental health related to social exclusion. “Then on the flip side, you could look at the potential contribution those people make to society and it’s enormous – this is a highly innovative group of people used to problem solving and thinking creatively on a daily basis. What if we harnessed that and used it as a strength? Imagine what we could do with that.” It’s a sizable pool of talent she’s talking about – 77,000 people in central Auckland and around 250,000 in the wider region have some kind of impairment. More than half of those fall into the mobility category (54 percent), one third in the hearing and 11 percent vision. “We could look at what answers this group might have for our aging population – the demographic time bomb countries like Japan are already dealing with,” says Baragwanath. “Baby boomers are a big demographic and although they’d never call themselves disabled, their abilities do

16 www.management.co.nz Management AUGUST 2010

change with age. I’m really interested in innovative leadership and how that relates to economic development. It’s where I think we can add value as a council – and a lot of that comes from personal experience.” Born with a condition called Stargatz (stargazer), Baragwanath was initially just diagnosed as short-sighted, but her visual impairment was an uncommon juvenile form of macular degeneration that affects the central part of her vision. “Also it deteriorates rapidly during adolescence, so I couldn’t read books or see things on the blackboard and though I’d started off playing sports, I had to stop because the coaches didn’t think I’d be able to manage. I couldn’t even recognise people’s faces. And there was no way I could drive.” With a supportive mother reading and recording her textbooks (“they were peppered with comments like ‘whoops, just spilt the tea’,” laughs Baragwanath), she earned a Bachelor degree in English Literature from Massey and, later, a Bachelor in Communication Studies from AUT. In between she travelled and went into business with what was possibly New Zealand’s first mobile coffee cart. She remembers the despair of walking into her first computer class, turning the machine on and realising she couldn’t see a single thing on the screen. “There was no adaptive software then. Even now I have to buy it separately. The software I use with our standard work computer is nearly $3000. In my first job I had to wait six months before getting approval (and government funding) for soft-

ware I needed to do the job. I was just lucky to have such a supportive employer.” At the time she was a TV researcher/ presenter for the Inside Out disability series. When told about the council job in 2001, Baragwanath had to get her mum to read the job description before successfully applying for what was initially a six-month contract. It proved a turning point. “It wasn’t easy for me to get work and I completely understand the barriers to employment and how they impact on you. So we could be running a whole lot of fabulous community development initiatives but it’s still key that people get work. “The greatest thing that made the biggest difference to my life is having a job because then I can be part of my community. I can go somewhere each day and feel I have a purpose. Once I started earning an income, I could buy my own home. I can afford to buy the computer equipment I need and not wait until the government decides whether I’m worthy of it. We don’t place enough emphasis on that side of the puzzle.” But things are changing. Through her work with the council, Baragwanath has ensured all its various arms – from roading and traffic to library services and the zoo – know what disability means for Aucklanders and for their own work programmes. It was a huge exercise but through relentless communication and relationship building, a whole bunch of protocols, policies and best practice guidelines have now been established. And these are increasingly being taken up by other local and central government bodies. “We did a lot of work around physical auditing because that was very tangible – so that auditing was applied to all our libraries, community facilities, swimming pools, rec centres etc and a programme to implement those recommendations started.” She also made a conscious decision to undertake the post-graduate diploma in Economic Development at AUT two years ago as she saw it as essential to her effectiveness as an advocate for disability. “Most people don’t ever think of dis-

ability through an economic development lens, they apply a charity or medical view which is terribly limiting.” She’s proud that Auckland City is on the front edge of change. “I think we should feel good because we have helped trigger disability programmes all across New Zealand that have drawn inspiration from our programme. “For instance, we’ve developed guidelines for accessible information and communication that will hopefully ensure everything we send out to customers and citizens in the new Auckland Council is accessible.” After completing the Leadership New Zealand (LNZ) one-year programme in 2007, Baragwanath has been working with former LNZ chief executive Lesley Slade, diversity consultant Philip Patson, AUT, IHC and Yes Ability to develop the “Stepping Up” leadership programme based around the LNZ template, but specifically designed for people from the disability community. It will take in its first cohort next year. Also in the offing – a major new economic development programme based around disability issues. “It’s about how accessible business is

good business,” explains Baragwanath. “It’s being led by Auckland City and we’re partnering with Tourism Auckland, Disability Resource Centre and Squiz on working with businesses around accessible tourism. Many people don’t realise that baby boomers, often with higher rates of disability, are our largest and most affluent tourist group – yet we’re not meeting their access needs. “A major aim of the World Cup programme is generating legacies that benefit New Zealand into the future – and we’re helping them deliver that. This is a catalyst for massive social change for the disability community.” It all points to what Minnie believes is a step change in attitudes toward disabled people. “What I see now is that there has been enough initial change to the built environment, to education and to employment that we have more disabled leaders and champions coming through who are articulate, have skills and can open doors for others. I wonder if we haven’t got to a tipping point where the momentum is unstoppable.” M Vicki Jayne is a freelance Auckland journalist.

AUGUST 2010 Management www.management.co.nz 17

JUST GOOD BUSINESS SUSTAINABILITY

Business saving the planet by Peter Neilson

actively buying goods and services for their organisations from suppliers who act sustainably. Only 29 percent say they don’t care who supplies goods and services, provided they are at the best price. Another 44 percent say they practise something in-between these two options. So between 25 and 69 percent of all business people buying in New Zealand will be saying to themselves “The price might be right, but…” They know that the damage to reputation, sales, and ability to attract and keep valuable skilled staff depends on their organisation behaving properly toward the environment and the society they live in. The Global Compact business group says: “It is a decade that CEOs believe could usher in a new era where sustainability issues are fully integrated into all elements of business and market forces are truly aligned with sustainability outcomes. Conversations conducted as part of this landmark study make clear that today’s CEOs are more convinced than ever of the need to embed environmental, social and corporate governance issues within core business... The imperative to act has shifted from a moral to a business case. Furthermore, executives see significant progress in executing their plans to integrate sustainability.” Here are Global Compact’s findings: • 93 percent of CEOs believe that sustainability issues will be critical to the future success of their business. • 72 percent cite “brand, trust or reputation” as one of the top three factors drivFor business, sustainability is about getting a balance ing them to take action on between profit, people and the planet, says Peter Neilson. sustainability issues.

hief executives globally are more convinced than ever of the need to embed environmental, social and corporate governance issues within their core businesses. The imperative to act is moving from a moral to a business case, according to the findings of the largest-ever global survey of CEOs on their sustainable business views and practices. In many ways it mirrors the values of New Zealand business decision-makers. The latest report by Accenture for the UN Global Compact business group should send a chill through the large numbers of New Zealand businesses which think they are behaving sustainably (62 percent) – and the number who actually have a sustainable development strategy (38 percent). The latest nationwide ShapeNZ-Fairfax survey of New Zealand businesses on sustainable practice, finds 75 out of every 100 senior executives and New Zealanders overall believe businesses should make a profit and contribute to the social good. This translates into 25 percent

18 www.management.co.nz Management AUGUST 2010

• 58 percent identify consumers as the most important stakeholder group that will impact the way they manage societal expectations. Employees were second with 45 percent. • 91 percent report that their company will employ new technologies to address sustainability issues over the next five years. • 96 percent believe that sustainability issues should be fully integrated into the strategy and operations of a company. • 49 percent cite complexity of implementation across functions as the most significant barrier to implementing an integrated, company-wide approach to sustainability. Here and abroad the worst recession in 81 years has barely dented support for sustainable practice. In New Zealand, only three percent more businesses are buying on price alone. Globally chief executives see sustainability as one area where doing the right thing is helping reduce costs and lift profits when revenue is hardly moving. Here companies are adding millions to their bottom lines from measuring and managing emissions – which leads them to plans to cut energy, water, travel and other costs. At the same time it cuts waste and emissions and boosts the use of smarter technology. For business, sustainability is about getting a balance between profit, people and the planet. Just know that when you go to do a deal in New Zealand you’ll have to come up with something better than a sharp price with 71 out of every 100 of the people you want to sell to. Buying cheaply without regard for your community or our quality of life will get you expensively offside with 75 out of every 100 New Zealanders. M Peter Neilson is chief executive of the New Zealand Business Council for Sustainable Development. www.nzbcsd.org.nz, www.shapenz.org.nz

Governance as ... ... responsible leadership? The 2010 Kensington Swan Responsible Governance Award for outstanding stakeholder commitment Win this award and become one of New Zealand’s stand-out Top 200 Companies. Investors, employees, customers, suppliers and other stakeholders view responsible governance practices as a measure of organisational integrity. It is an expression of This year’s Kensington Swan Responsible Governance Award, a major category award within the 21st annual Deloitte/Management magazine Top 200 Awards programme, has been revised, enhanced and broadened in scope to reflect the changes that impact on local and global market acceptance and success. Every successful, sustainable, responsible and future-focused enterprise should aspire to win this award. It reflects a company’s genuine understanding of our new world in which responsible, ethical and sustainable governance defines real success. The Kensington Swan Responsible Governance Award questionnaire has been expanded this year. The New Zealand Securities Commission’s Corporate Governance Principles and Guidelines* have been used as a reference, along with advice from leading responsible investment adviser Dr Rodger Spiller and the highly regarded Canberra-based CAER (Corporate Analysis. Enhanced Responsibility), which monitors NZX 50 companies for AMP Capital. The questionnaire now addresses the Commission’s expectations of best practice as a prerequisite to entry. The outcome will build on the 11-year history of this award as a coveted acknowledgement of outstanding commitment to best practice governance that provides stakeholders with a positive indication of organisational integrity. *Principles 1 and 9 respectively state, in part, that “Directors should observe and foster high ethical standards...” and that “The boards should respect the interests of stakeholders...”

a board’s commitment to ethical and outstanding business performance and leadership. And for those enterprises that embrace, articulate and demonstrate responsible governance, it delivers competitive advantage.

All potential Top 200 Companies will be invited to complete the Kensington Swan Responsible Governance entry form. To ensure delivery of your entry details or for further information please email Tania Vela at taniav@mediaweb.co.nz. Or, go to www.management.co.nz/top 200 The ﬁnalists and winner will be announced at this year’s 21st Deloitte/Management magazine Top 200 Awards, held in Auckland at SkyCity on Thursday, December 2, 2010. Join us at this year’s event where you will meet those who are already writing the new rules for a new world.

Winners of the former Kensington Swan Ethical Governance Award include: 3M New Zealand, NZ Post, Methanex, Norske Skog Tasman, Mercury Energy, NZ Aluminium Smelters, Honda New Zealand, Snowy Peak. Deloitte/ Management Magazine

TOP 2OO A Bold Spirit

OPINION

Bookcase by Brenda Ward and Reg Birchfield DAMNED IF SHE DOES, DAMNED IF SHE DOESN’T BY LYNN CRONIN AND HOWARD FINE • FOOTPRINT BOOKS • RRP: $42.62 (EXC GST)

Women are still struggling in today’s business world, playing a game with rules that work best for men, argue Lynn Cronin and Howard Fine. The couple, who started out in the same business together only to see Fine’s career grow easily while Cronin’s dragged, wrote this book seeking answers as they watched their children head out to work. Lynn Cronin is now a consultant for Fortune 500 companies, and Fine runs a human resources consultancy. Pay figures that show differences between salaries show only a snapshot in time, they say. In fact, the longer one stays in the workforce, the greater the disparity in pay between men and women. The pair say women are marginalised in team environments. They can’t win. Too easy-going and they are seen as weak; too vocal and they are ‘dominating’. “Most companies are still haunted by cultures in which employees are most comfortable when women are quietly supportive,” say the pair. Women also miss out on mentoring and advocacy opportunities, waiting like the girls at the dance, to be asked, without

the easy chemistry of business relationships between men. The book also covers the paradoxes of women’s commitment to a job while raising a family, how they bond with co-workers and how they find it difficult to challenge the power structure. Despite the issues, the writers are optimistic that all of us want gender parity – we just need to find a solution, the gender-neutral corporate structure of what they call a ‘co-ed’ company. This is a fascinating analysis of the issues that will appeal to both sexes, rather than a guide with all the answers. However, senior managers will find considering the problem is already half of the answer. • Brenda Ward THE WHY OF WORK DAVE URLICH & WENDY URLICH • MCGRAW HILL • RRP $54.99

The world of work has changed, and many of us are still trying to fathom the consequences, up side and down, of that. To cope with and benefit from constant and significant change, it helps to know the why. To keep managers and professionals engaged, we need to know why we are

doing what we do. And as work is the thing we do most during our waking hours, we are better equipped to cope and succeed when we understand the why of it. David Ulrich is one of America’s leading business thinkers, based at the University of Michigan. Wendy Ulrich is a psychologist there. Their book focuses on seven key questions: • What am I known for? – identity. • Where am I going? – purpose and motivation. • Whom do I travel with? – relationships and teamwork. • How do I build a positive work environment? – effective work culture or setting. • What challenges interest me? – personalising and contributing work. • How do I respond to disposability and change? – growth, learning and resilience. • What delights me? – civility and happiness. The Why of Work is well considered, thoughtfully constructed and tackles an interesting and increasingly complex issue – how to keep focused on the meaning and personal value of work beyond the dollars and when all around things seems less than ideal and personal exploitation prevails. • Reg Birchfield

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OPINION POLITICS

What style is our leader? by Colin James

s the world changes, so do politicians’ leadership styles. It’s not business as usual. After every big technology-induced economic boom and crash, things are done differently. After the “great financial crash”, politics, like business, requires a different sort of leader and a different sort of leadership. This is only partly because governments think they need to re-regulate those who caused the crash. It is also only partly because most governments in the rich world have mountains of debt and huge budget deficits to defray. There’s a critical shift to which political leaders will need to respond – the different structure of business driven by digital technology. Rote neoKeynesian or neo-liberal doctrine will miss that point. The digital revolution changed forever the globalisation of finance, production and markets (along with information, people and ideas). This in turn has been helping the tectonic global economic and political rebalancing that goes with Asia’s rise. It will be some time before the global political-economy settles into a relatively predictable new pattern – as, for example, happened for four decades after the second world war, before digital technology started really to change economies and societies. The opportunities in science, new technology and goods and services in the fast-enriching economies come with the complication for us of having to learn how to operate in unfamiliar cultures, notably Chinese and Indian. The true leaders in business here over the next 20 years will be those who can make this transition. The same goes for politics. Helen Clark was Eurocentric. She did the free trade deal with China and recognised Asia’s rising and future im-

portance. But she was more at home in Europe and with Spanish-speaking Latin America. Teaching of Asian and Chinese studies and language languished at the very time when a future-oriented leader would drive an urgent shift of focus in schools and universities. Clark was a “consolidating” prime minister in the three-way classification Victoria University political leadership specialist Jon Johansson uses. She settled the country down after the 1980s-90s’ radical shifts to neo-liberal economics and bicultural social policy. Put another way, she was a transactional manager. John Key, in Johansson’s model, is “preparatory”. He is a tail-ender of the baby-boomer generation of which

morph into that role. He is pragmatic and cautious and closely watches polls (which point backwards). He suits managerial government aimed at maintaining a majority in a society of vote-drifters. If he is preparing us for something different, as distinct from soothing us before a future leader’s ‘something different’, it is not obvious yet. Key has a decentralised style of cabinet management in which good ministers do well and less competent ones muck up. His take on China and the global rebalancing amounts to little more than trade, trade, trade. He is miserly and unadventurous with research funds. He has not pushed officials, researchers, business and policy

“THE TRUE LEADERS IN BUSINESS HERE OVER THE NEXT 20 YEARS WILL BE THOSE WHO CAN LEARN HOW TO OPERATE IN UNFAMILIAR CULTURES, NOTABLY CHINESE AND INDIAN.” Clark was a standard-bearer. That delineates him as a transitional leader from that generation to the generation-Xers coming up. The third Johansson leadership classification is “achievement”. You might also call that transformational. Sir Roger Douglas, with David Lange as his translator and presenter to a public that was alternately mesmerised and stunned, was such a leader. The challenge for the generation-X leaders waiting in the party ranks will be to lead the sort of policy transformation that will fit New Zealand economically, socially and politically into the 2010s-20s digital and geopolitically rebalanced world. Key has shown little sign he can

22 www.management.co.nz Management AUGUST 2010

wonks to see whether “clean-tech” or “green growth” will be big in the postcrash economy and, if so, how New Zealand fits. Instead, his big word is “balance”. That sounds more like consolidating Clark’s consolidation than preparing the next big leap. But, as polls tell him, voters have little appetite for a big leap. Business as usual is much more comfortable, even if it is the last epoch’s “usual” rather than the “usual” to come – as it surely will. M Colin James is New Zealand’s leading political commentator and NZ Management ’s regular political columnist. ColinJames@synapsis.co.nz

AS I SEE IT

Luke Dallow Restaurateur and entrepreneur What is New Zealand’s identity? As a small nation we tend to look out for our own. When we travel, we often treat fellow Kiwis like brothers and sisters – some of us in weak moments have even been known to greet Aussies in similar tones. Our isolation from the rest of the world bonds Kiwis and enhances our patriotism. We’re engrained with a No 8 wire mentality as children and this is what sets us apart from the rest of the world when we are facing daily challenges. I believe New Zealand’s Maori culture and how it is evolving gives us a unique outlook on life and is something we need to embrace more. And it’s not only the Maori culture that stands out here in Godzone. This country embodies so many different nationalities and I think that’s a great thing. It all adds up to a rich and colourful multicultural nation. I’ve travelled a fair bit and every time I come home I am reminded how stunningly beautiful New Zealand is. And for our size we seem to produce more than our fair share of high-achievers – be it in sport, fashion, business, hospitality and many other areas. Although we aim for the sky, I reckon we’re pretty gracious when we reach it – and when we don’t. What will be our next major challenge? As a country, we need to work on helping people in the lower socio-economic groups. There is a growing gap between these groups and middle-income New Zealand. Poverty is a vicious cycle and as a nation we need to support the less fortunate. But we won’t do it by offering them hand-outs. We have to grow the pie so each person’s share is bigger – there’s no point in carving up bigger slices for selected groups by taking share off others. Another challenge is the great Kiwi brain-drain. We’re an exceptional country of not only educated people, but also skilled, very hardworking and talented staff. We need to get the world coming to New Zealand, rather than New Zealand going to the world. And that’s why I am a big supporter of immigration. We’re the same size as the UK with around one fifteenth of the population. We are sought out as an immigrant nation and we can take advantage of that, encouraging others to join us in our growth. What do we need to do to prepare ourselves for that? We need to grow our pie so that everyone’s share of the country’s wealth grows. We also need to help out those struggling with poverty by providing mentors and inspirational Kiwis prepared to help others. The ever-present tall poppy syndrome needs to be washed out. Although that phrase has now become clichéd, it does exist. We need to applaud successful Kiwis, especially those who overcome obstacles to achieve. Rather than criticising their work we should be celebrating their accomplishments. Because New Zealand is both small and comprises many successful people, petty jealousies can be hugely counter-productive. Rather than congratulate, it’s easier to knock achievers. We need to look beyond the present and realise there is a bigger picture. We shouldn’t look too much into our neighbours’ problems and be quick to judge someone if they’ve made a mistake.

Luke Dallow is a hospitality veteran and the owner of Auckland’s Sale St bar & Dallow’s restaurant, Chapel Bar & Bistro as well as the recently launched Radio Ponsonby.

OPINION ECONOMICS

It’s a question of management by Bob Edlin

inance Minister Bill English obviously enjoys answering patsy Parliamentary questions that have been crafted to allow him to claim or infer that his economic management is greatly superior to that of his Labour predecessor. An example: an innocent-sounding question from MP Amy Adams about challenges in the economy to creating permanent and sustainable jobs. English replied saying there was little point in having the job creation that occurred under the previous government, “based as it was on a temporary property boom, or a back-room bureaucracy that the economy does not need and cannot afford. That gave many New Zealanders false hopes, which have been dashed. That is why we are working on creating betterquality jobs in an economy focused on saving and exporting.” But another recent question inadvertently drew attention to the benefits flowing from a good policy initiative by the Clark government, the negotiation of the freetrade agreement with China. National MP Colin King wanted to know what reports Agriculture Minister David Carter had recently received on the state of New Zealand’s primary sector. He was told the Ministry of Agriculture and Forestry had just launched its annual flagship publication, Situation and Outlook for New Zealand Agriculture and Forestry. This “shows that our primary producers are at the forefront of New Zealand’s export-led recovery and, despite a number of chal-

lenges, can look forward to a mainly positive outlook over the next five years”. So what were the key findings of the report and what significant trends did it pick for the sector in coming years? Carter replied that it identified a robust economic outlook for our primary sector “on the back of an increasingly strong demand from developing economies, most notably China”. Agricultural and forestry export earnings from China rose from $1.47 billion to $2.19 billion in the year to December 31, 2010 (up 49 percent), with whole milk powder increasing from $250 million to $610 million. Forestry export earnings increased from $529 million to $864 million (up 63 percent). China didn’t show up among New Zealand’s top 10 export markets two decades ago. It now sits in the number two position. On his recent visit there, Prime Minister John Key said he wanted to double the two-way trade between the two countries to $20 billion within five years. But his figures ($4 billion export revenue and $6 billion import payments in the year to 31 May) are for merchandise goods trade only. New Zealand has a growing trade in services with China which has even more growth potential, as Wellington Employers’ Chamber of Commerce spokesman Charles Finney pointed out. Finney reckons Key has understated what is achievable, especially when services sector exports are included, and he

26 www.management.co.nz Management AUGUST 2010

noted that doubling the trade amounted to less than 15 percent growth per annum, which is much less than New Zealand’s annual growth in exports to China since the Free Trade Agreement was signed. It is not much more than the levels of annual economic growth China has been experiencing in recent years. Let’s not forget, then, that in May 2003, when the Clark government was being criticised for its handling of diplomatic relations with the United States, Trade Minister Jim Sutton was sanguine. He was focused first on the Doha round of World Trade Organisation negotiations to liberalise global trade, and then on a free-trade agreement with the US. But he said: “To me, there’s no trade and economic relationship more important for New Zealand for the 21st century than our trade and economic relationship with China.” It’s worth wondering what would have happened to our economy without China’s trade during the recession. Total merchandise exports fell 7.5 percent in the year to May 31. Receipts increased in just one of our six markets – China (up 23.8 percent). China was willing to negotiate a free trade partnership on terms generally acceptable to people in this country. The United States – so far – is not. This makes it hard to disagree with Sutton’s judgement. M Bob Edlin is a leading economic commentator and NZ Management’s regular economics columnist.

COMPANY PROFILE

THE BUSINESS BEHIND CORPORATE TRAVEL

QUEST Serviced Apartments New Zealand and Fiji has made the business of travel a highly successful venture with a property portfolio worth over $250 million, and turnover in excess of $35 million per annum. The largest serviced apartment network across the region represents 27 properties stretching from Invercargill to Suva, and is poised for further expansion with 4 more planned over the next 2 years. Launched in 1998, following the success of the model in Australia, Quest has grown at a steady rate of 2-3 new properties per year. Each property is based on 40-50 apartment complexes, mixed with studio, one and two bedroom apartments. Well located in business hubs, each property is closely aligned to location features including conference venues, restaurants and bars. All Quest properties are Qualmark rated 4 or 4.5 star standard and the majority of the network has also achieved

Bronze Enviro status for their commitment to sustainability. Quest guests are both short and long stay business travellers; they are professionals whose working lives involve regular travel or relocation. Then on weekends and holidays, Quest often welcomes the very same business travellers back as leisure guests. Guest feedback highlights a number of reasons for choosing Quest; at the top of the list are value for money rates and the conveniences that come with a fully self contained apartment (7 day per week reception, daily room cleaning, laundry/valet, internet access, breakfast packs, pre-arrival pantry shopping service and restaurant charge back). With the independence of the Quest experience, guests can avoid high costs often associated with food, beverage and laundering when staying at a hotel. For corporates, Quest offers the convenience and assurance of a fixed rate option. As CEO Stephen Mansfield explains;

“For all our corporate clients and especially SMEs, the assurance of a fixed rate is one less business variable to manage, we understand the value of that, we’re business people ourselves. Some of our guests have expressed frustration with the hotel sector, where a room worth $100.00 today can be sold at $200.00 tomorrow. At Quest we focus on delivering certainty to the corporate traveller - certainty of product standard, room availability, price, service and location.” Recently Quest joined the New Zealand Institute of Management (NZIM) and the Project Managers Institute of New Zealand (PMINZ) as the exclusive accommodation provider. Fellow members who book direct will enjoy a standard rate of $115.00 plus GST, available at Quest properties throughout New Zealand and Suva. This rate represents the maximum they will pay, and if the member books direct via the Quest website they will also be able to enjoy any special rate of the day that happens to be lower.

Quest Serviced Apartments Tel: +64 9 366 9680 . Fax: +64 9 366 9681 . Web: www.questapartments.co.nz

AUGUST 2010 Management www.management.co.nz 27

NZIM ENGAGING MANAGEMENT

Bounce the bonus RICHER REWARDS EXIST Forget motivation. Focus on engagement. That’s the New Zealand Institute of Management’s advice to employers stretched to find the bonuses and cash rewards conventional wisdom says keep good people on the payroll. Reg Birchfield reports.

he marketplace is tight. And in tough chance to more effectively reward talented economic times, employee morale employees by emphasising non-financial and money supply take a pounding. In motivators rather than bonuses”. times like this, something more than The survey found that world wide, financial bribery is needed to keep or- companies are cutting back their finanganisations performing. cial-incentive programmes but, that Experience and research both advo- few of them have used other ways of cate thinking outside the square. Keeping inspiring talent. “We think they should,” the most talented people in an enterprise says the consultancy. “Numerous studfocused and positive isn’t just about ies have concluded that for people with money. “Bonuses are over-rated,” says satisfactory salaries, some non-financial Robyn Walshe, an NZIM Northern board motivators are more effective than extra member and principal of Davidson Kemp cash in building long-term employee enConsultancy. gagement in most sectors, job functions She concedes, however, that they have and business contexts.” been the “currency of apThe survey specifically preciation” for some time identified three non-cash and are still used as a mark motivators as “no less or of value. “But they let us even more effective” than down when funds are short the three highest rating and there is less in the pool financial incentives – cash to share around.” bonuses, increased base Kevin Gaunt, NZIM pay, and stock or stock Northern chief executive, options. The three nonbelieves that focusing on financial motivators they money as a motivator is found effective were: “part of the old style man• Praise from immediate Robyn Walshe. agement world”. For his managers. money, the key issue in today’s world is • Leadership attention (such as one-on“engaging” people. “Motivating is what one conversations). someone tries to do to someone else. • A chance to lead projects or task Engaging is what a person does them- forces. selves,” he says. As Walshe points out, research has Some recent research by global man- “been telling us for decades” that financial agement consultancy McKinsey & Com- rewards are limited in their value to mopany endorses the NZIM directors’ tivate. “But,” she adds, “one of the things collective thinking. It suggests that the we did learn over the past year or so is “economic slump offers business leaders a that remuneration packages loaded with 28 www.management.co.nz Management AUGUST 2010

bonuses encourage behaviours that may not be good for business – or ethics. “Customers and shareholders have watched in horror as executives with key roles during periods of significant stuffups are still paid sizeable bonuses. Consequently, trust is undermined, reputation is lost, and brand and share values fall. “The bonus is perhaps becoming another four letter word – never mind that it contains five letters – and may yet become the currency of shame,” she offers. Gaunt’s emphasis on engagement rather than motivation, is also based on research. The first level of engagement involves asking: • Am I earning enough money to make me turn up for work? • Do I have the tools necessary to do my work? • Do I know what is expected of me? “At this level,” says Gaunt, “the individual is willing to engage. At the second level a person wants to know whether what they do is worthwhile and appreciated. If they find themselves thinking: ‘why on earth do I bother?’ then they are not being recognised and their engagement falls off. “At the third level, people ask themselves two further questions: am I aligned with where this organisation is going? And: do I like working with these people? If the answer to both questions is yes, then the individual will commit further and become increasingly engaged,” says Gaunt. “The fourth level of engagement is

about the individual looking for growth and opportunity in the organisation. At this stage they are highly engaged but, if they can’t move forward, their engagement will reduce.” So why haven’t more organisations made more use of cost-effective nonfinancial motivators at a time when cash is harder to find? The McKinsey survey suggests that many executives hesitate to challenge the traditional management wisdom that money is what really counts. “While executives themselves may be equally influenced by other things, they still think in Kevin terms of the size of the Gaunt. compensation,” was one reason provided by a respondent to the researchers. Another, and more probably the real reason for sticking with bonuses, is that non-financial ways of motivating people “require more time and commitment from senior managers” – read leadership laziness. One HR director McKinsey interviewed talked about senior executives’ tendency to “hide” in their offices – reflecting uncertainty about the current situation and outlook. “This lack of interaction between managers and their people creates a highly damaging void that saps employee engagement,” the survey said. Walshe also adds: “It’s interesting that we’re still focused on bonuses when the messages have been telling us there’s so much more [available to keep individuals motivated and engaged]. “We still use misleading language,” she says. “We talk about motivating others. Some say you can’t motivate anyone. You can help create an environment where it’s easier for individuals to be successful or you can reward them in ways that encourage the behaviours an organisation is after. But real motivation is always something that an individual drives from within.” This, effectively, is Gaunt’s point

about emphasising engagement. Walshe does, however, think some companies are, either voluntarily or because economic circumstances are encouraging them, “tuning in to the power that comes with giving people opportunities to grow and develop” and not just be richer. One of her clients recently won a sales person of the year award which wasn’t “simply a stack of money”. It was training. “Once we would have said that a top-performing employee didn’t need training and that their performance was evidence they had already arrived,” says Walshe. “But the opportunity to grow, develop and expand their talent and career was considered a fabulous prize. That company has changed its currency of appreciation.” A key attribute identified in the Ministry of Economic Development’s recently released ‘Management Matters’ report is management’s role is to build people capability. It is a point with which Gaunt agrees. “Building capability makes organisations more attractive to prospective employees and helps retain the talent already in the organisation. But, I still think too many managers are focused on the operational side of their organisation and not sufficiently on the human resource side.” The McKinsey study suggests that with profitability returning to the marketplace, there are signs of bonuses making a comeback. “While such rewards have an important role to play, business leaders would do well to consider the lessons of the crisis and think broadly about the best ways to engage and inspire people,” they suggest. “A talent strategy that emphasises the frequent use of the right non-financial motivators would benefit most companies in bleak times and fair. By acting now, they could exit the downturn stronger than they entered it.” M

LEADERS BUILDING LEADERS Our aim is to build management capability through, Research, Learning, and Recognition Our focus is to: • Research leading management trends and practice and promote a constantly developing model of best management capability for New Zealand. • Enable managers and aspiring managers to participate in learning programmes, mentoring, and events that provide the information and experience they need to develop their capability. • To identify leading management role models and provide awards that recognise the career and educational achievements of managers. NATIONAL BOARD PHILLIP MEYER FNZIM (CHAIRMAN) GARY STURGESS Life FNZIM JOHN SANDFORD FNZIM LYNDA CARROLL AFNZIM

BRIAN SOUTAR AFNZIM LLOYD DAVIES FNZIM CHERYL DOIG FNZIM

OFFICES NATIONAL OFFICE Acting CEO PHILLIP MEYER FNZIM Box 67, Wellington 6140 Ph 0-4-473 0470, Fax 0-4-473 0479 Email national_office@nzim.co.nz National website http://www.nzim.co.nz NORTHERN President: JOHN SANDFORD FNZIM CEO: KEVIN GAUNT FNZIM, FAIM Box 6600, Wellesley St, Auckland 1141 Ph 0-9-303 9100, Fax 0-9-303 9109 Email kevin_gaunt@nzimnorthern.co.nz Website www.nzimnorthern.co.nz CENTRAL President: PHILLIP MEYER FNZIM CEO: KARIN CALLAGHAN FNZIM, FIPAA Box 11781, Wellington 6142 Ph 0-4-495 8300, Fax 0-4-495 8301 Email karin_callaghan@nzimcentral.co.nz Website www.nzimcentral.co.nz SOUTHERN President: BRIAN SOUTAR AFNZIM Acting CEO: TOM McBREARTY AFNZIM Box 13044, Christchurch 8141 Ph 0-3-379 2302, Fax 0-3-366 7069 Email tom@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

UNDERSTANDING THE NEW WORLD

WANTED:

Great NZ leaders

ew Zealand’s leaders must start asking the right questions and articulating a vision of the nation’s future, Fletcher Building’s chief executive Jonathan Ling says. Ling, the second Australian in succession to run the country’s second largest enterprise, thinks our business and political leaders should ask themselves why Australia’s economy and standard of living is about 30 percent ahead of New Zealand’s. He says, until New Zealand gets its economy in shape “it can’t seriously consider doing the things it would like to do”. He draws parallels between the need for the nation to think and act much as he does in driving Fletcher Building. “I am not a politician and I don’t know how to run a country,” he says. “But if I applied my business theories, I would advocate getting the right people in place, agreeing what to do and then creating the culture and support mechanism to make sure it happens. No one seems to have a go at that sort of process.” The differences between New Zealand and Australia are, says Ling, partly cultural. He found the cultural differences he faced moving to New Zealand greater than those he encountered when he moved from Australia to Malaysia. The Australian psyche is, he believes, firmly rooted in its sports-dominated winning culture and, consequently they will do whatever it takes to win.“Even bowl underarm, if necessary,” he smiles. Doing whatever it takes to win is, says Ling, part of their cultural DNA. New Zealand, on the other hand, is defined by its relationship culture, which is probably in turn linked to the nation’s smallness. Our need to get along with each other has steered people away from “making enemies” of those they might rub up against in business in the future. He thinks one of the unintended consequences of the Kiwi relationship culture is that emotive, rather than factual responses, govern thinking. “Facts govern things in a winning culture,” he says. In Ling’s experience, this difference

accounts for the struggle New Zealand communities have with the “fact-based conversations” the country needs to have to get the outcomes it needs. “There is no right or wrong about a winning versus a relationship-based culture,” says Ling.“But you can see why some of the behaviours in the two countries are quite different.” As Ling’s observations show, New Zealand, like most of the world, faces difficult and defining economic, social, environmental, organisational, structural and political decisions. Having the potential to survive and succeed will depend on the abilities of leaders at all levels to make complex and globally contextual decisions. As a Leading the Future report from the Swiss-based IMD management school has recently pointed out: “Leadership is in demand. The complex challenges that face teams, organisations and societies are demanding new ways of thinking about and shaping the future.” Recent reports, some global and one the government-funded London School of Economics and McKinsey consultancy study of our manufacturing industry, Management Matters, suggest New Zealand has serious management and leadership competency problems. MANAGING OUR RESOURCE POTENTIAL

From a resource perspective, New Zealand is, according to most business leaders, sitting in something of a box seat. Solid Energy’s chief executive Don Elder, for example, thinks that when it comes to counting measurable and marketable resources, New Zealand is the “luckiest country in the world”. On a per capita basis, we are richer in desirable and essential resources than any other country, he adds. “But here’s the barrier,” he cautions. “We continually have the wrong discussions in New Zealand on almost every issue of major national importance. No sooner is an idea advanced for discussion, than one group or another hijacks the issue and redefines it in a grossly, oversimplistic way.” In Elder’s opinion, the right question

“IF I APPLIED MY BUSINESS THEORIES, I WOULD ADVOCATE GETTING THE RIGHT PEOPLE IN PLACE.” – Jonathan Ling, Fletcher Building

is invariably not “should or shouldn’t we?”, but rather “what is the objective; what are the options; what are the criteria for ranking options; what are the real (not reactionary) consequences and risks? And what conditions could make for better outcomes against objectives and allow a better overall result for New Zealand?” A simplistic yes or no approach to issues effectively avoids any meaningful discussion of nationally important issues and threatens to keep New Zealand mired in a “can’t do” rather than a “can do” mindset he says. Implied in what he says is a belief that New Zealand leaders, commercial and political, seem unable or unwilling to grapple with the resource development opportunities available. New Zealand can, says Elder, achieve a huge and permanent economic change by acting boldly on what he calls substantial “made in New Zealand, made for New Zealand once-only opportunities – unique in our history. And they are simply the result of our natural strategic strengths and competitive advantages.”

AUGUST 2010 Management www.management.co.nz 31

COVER STORY

Don Elder... “We continually have the wrong discussions in New Zealand.”

Helen Robinson... “We are reluctant to commercialise our great ideas and we are still far too risk averse.”

Sir Ron Carter... “We lack confidence in our ability to realise just what our potential is.”

Sir Stephen Tindall... “We have as many good leaders as any other country.”

John Allen... “Our leadership style includes egalitarianism, fair play and a strong sense of humility.”

The initiatives won’t, however, happen on their own. The government and private sector must, says Elder, get on and make both the decisions and investments needed to deliver the promise and the future economy. “Almost all the things the world will need more of but will be increasingly short of, we have in abundance,” he says. “Good agricultural land, fresh water, a year-round growing climate, primary resources and energy.” The issue for him is leadership and management of the national discussion that needs to take place for New Zealand to realise its economic potential. Fonterra CEO Andrew Ferrier agrees with Elder’s assessment of New Zealand’s abundant and strategically desirable resources. But he is equally quick to identify the missing ingredients – leadership and, what he calls commercial acumen. When it came to recruiting Fonterra’s senior executive ranks he was, he concedes, forced to fill them with more non-New Zealanders than he would have liked. “Our criteria required that we employ the best possible people we could get.” They were not, unfortunately, home grown. “At the top end of world-class executive talent, we still have a way to go,” says Ferrier. He would like to think companies like Fonterra, with the funds and scale to spend on executive development, can help raise the general level of leadership competency in New Zealand. But right now, the shortage of globally equipped and experienced leaders is an issue. This reality surfaces every year in the IMD’s International Competitiveness Survey where New Zealand ranks among the lowest in management competency. The Management Matters survey confirms that New Zealand companies are weak on both strategy and management. STRONGER GOVERNANCE REQUIRED

Jon Mayson... “We need to fan a burning desire to do better.”

New Zealand’s generally poor-performing boards are legend. Directors are seriously risk-averse, draw their numbers from a small and much-too closely connected governance gene pool, are disinclined to embrace innovation and, say their critics,

focus on process and compliance rather than strategy, global opportunities and leadership. They are also reluctant to invite independents onto their boards. Poor governance delivered the global financial crisis, and more. Governance as a leadership function desperately has to change, not just here but globally. Jon Mayson, former Ports of Tauranga CEO and now chairman of New Zealand Trade and Enterprise, would probably agree. In an interview with me for Leadership New Zealand’s Leaders magazine last year he said that he was “not convinced that New Zealand’s collective leadership is sufficiently aware of, or committed to solving the quite serious problems facing the country in the next 10 to 15 years”. New Zealand leaders did not, he said, want to take the tough decisions that would make a “quantum” difference to the nation’s economic performance. “We need a paradigm shift in attitude and to embrace a more bipartisan approach to leadership in this country.” Mayson believes in the need for a serious leadership debate to make things happen. “We do have some great leaders who are capable of leading the discussion,” he says. “We have incredible people, such as those in KEA [the diaspora of successful Kiwis operating offshore] who are willing to give of their time and experience for the benefit of New Zealand.” In his call for decisive leaders, however, Mayson wants them to adhere to the leadership values he considers important – integrity, honesty, innovation and self-belief. He is not convinced New Zealanders are strong on self-belief, a trait he attributes to our national psyche. “We need to fan a burning desire to do better.” Helen Robinson, global managing director of environmental markets for Markit Group, has that burning desire to see New Zealand become a world leader in carbon and environmental commodity trading. But she is also concerned by our tendency to procrastinate when it comes to making big decisions. “We are reluctant to commercialise our great ideas. And we are still far too risk averse,” she says.

New Zealand is sitting on a green, presumably more valuable than gold, opportunity to “capitalise on and leverage its international reputation as environmentally and sustainably conscious and free from corruption. But we just navel gaze too much,” she says with an edge of agitation and exasperation in her voice. In her opinion New Zealand could, if its politicians were driven a little more by intellect than dogma, build a vibrant and financially sustainable economy based on clean technologies and environmental enterprise. Robinson’s credentials for making such a comment are impeccable. She is, since she took the NZX established carbon registry TZI to the world, an acknowledged global expert on environmental commodity markets. Like Mayson, Robinson stresses the importance of values. Leaders need to be focused, savvy and professional but, she says, they also have to “have heart”. WE NEED TALL POPPIES

Both Mayson’s and Robinson’s reservations about the leadership resilience of the Kiwi character are, to some extent, shared by Ferrier. He thinks our leaders, individual and organisational, are often compromised by the Kiwi “tall poppy syndrome” which he finds unattractive. New Zealanders are, this native Canadian thinks, inclined to “cut down large institutions simply because they are large”. “There seems to be something in the culture which somehow equates big with bad. Yet we need to create some large institutions to really be competitive in today’s world,” he adds. “We should celebrate, not castigate, our successes.” Warehouse founder and philanthropist Sir Stephen Tindall is, despite a number of well-articulated reservations, ever the optimist about New Zealand. He’s dedicated to searching for “better solutions” to the nation’s economic problems. One of those solutions might be longer terms in power for political parties. A change from three to five years for governments would, he thinks, go a long way to solving the country’s policy-making and implementation dilemma.

He doesn’t, however, think we suffer from a paucity of leaders. “We have as many good leaders as any other country,” he says. “We could always do better and that’s why I see developing more leaders as important. I do what I can to encourage young people to take up the leadership cudgels.” Sir Stephen ranks the parlous state of world economies as the most critical problem facing today’s political, commercial and social leaders. A shortage of leadership morality and financial acumen is, he concedes a global issue, but New Zealand has to get its own house in order to survive and prove that things can be done differently. New Zealand’s smallness is, he says, also advantageous. “It does not require a huge amount of effort to move the needle into a more positive position. If, for example, we could grow our exports by say 20 percent overnight, we would probably be cash-flow positive. Ten Fisher & Paykel Healthcares or the equivalent of a Nokia in New Zealand would make an enormous difference to our economy,” he adds. His other cause for optimism comes from an observation that New Zealand’s “self-satisfied” commercial attitudes are changing. “I am optimistic that we are now in a pioneering stage when it comes to developing new technologies,” he says. “There is a plethora of new technology companies coming through.” Sir Ron Carter, the man who successfully led the growth of the New Zealand arm of the global engineering consultancy Beca, thinks that while New Zealanders often “punch above their weight”, as a nation we do not achieve as much as we could. “We lack confidence in our ability to realise just what our potential is,” he says. Sir Ron is also committed to championing the case for better leadership. His interest in leading was stimulated by his involvement in a study into identifying reasons why some scientific companies successfully export their science while others were commercially unsuccessful. The quality of the organisation’s leadership was the defining factor, he says. “In every case, those successful

“AT THE TOP END OF WORLDCLASS EXECUTIVE TALENT, WE STILL HAVE A WAY TO GO.” – Andrew Ferrier

leaders were backed up by a team who had been inspired and they accomplished great things.” Former New Zealand Post CEO and now chief executive and secretary of Foreign Affairs and Trade John Allen believes there are identifiable traits which exemplify the successful New Zealand leader which might be relevant to the new world order. “Our leadership style is influenced by our national psyche,” he told me some months back when I was writing a story for the Sir Peter Blake Trust magazine. “It includes a sense of egalitarianism, of fair play and a strong sense of humility. It is part of our DNA and it is reflected in how we lead.” He believes our geographic smallness and isolation, dependence on a need to look outward and create successful partnerships in order to trade with the world has helped shape who and what we are and how we do things. But whatever it is that defines a successful New Zealand leader, Allen is in no doubt that effective leadership is precisely what this country needs right now. M

AUGUST 2010 Management www.management.co.nz 33

LEADERSHIP

Caring CEOs of

THE FUTURE The new business world is becoming so fast and complex, the job description of a leader has had to change. Brenda Ward asked the experts what you need to succeed.

Martyn Newman.

omorrow’s leaders will schedule daily meditation sessions, ask only ‘powerful’ questions, tell lots of stories, and make decisions in split seconds. They won’t be rock star leaders, like Richard Branson, because we’ve fallen out of love with the charismatic leader. Instead say hello to a manager who is reflective, ethical, transparent, authentic and a trusted adviser to his team. Martyn Newman, an Australian business consultant and author of the international bestseller, Emotional Capitalists – The New Leaders, says two things have precipitated the dramatic changes we’re seeing in the skills senior leaders need. First, during the global financial crisis, managers fell back into conservative ways of behaving and the safe patterns that they knew, Newman says. But that’s bad for business and bad for teams, he says. Secondly, a new generation with new values is hitting the workforce, and they don’t respect leaders who are domineering and aren’t necessarily swayed by charisma, says Newman. “They haven’t known the hardship of the previous generation. Rather than saving for a rainy day, they are looking for experiences and different levels of satisfaction. “They are likely to take a gap year, whether the job remains open for them or not. Not for them, the certainties of nine to five. With greater flexibility and uncertainty in the job market, people leave a job more often than they used to

34 www.management.co.nz Management AUGUST 2010

and they want to get a set of skills that will help them in different roles.” They’re also looking for a new kind of boss to role model, someone who is ethical and transparent in all their dealings. That means it’s time to rethink leadership skills for a new world, says Newman. HR consultant Jane McCann, director and chair of Wellington-based Thought Partners agrees. She shadows many leaders in organisations around New Zealand and has observed that the CEOs best equipped for the new world of business and most respected by their teams have different qualities to the bosses of the past. “The qualities that people are looking for now are authenticity and someone they can trust. They have a great admiration for leaders with these attributes.” BEING BRAVER

Newman says a focus on funding cuts has taken leaders away from their primary role: to lead. “Developing a cartel of high-performing leaders is the way to create efficiencies, rather than making funding cuts. Efficiencies come when you give people the confidence to dance in business,” he says. Instead of playing it safe, managers should be braver, says Newman. “Take risks. Do it with a fundamental confidence in people, then act as a resource for your people.” He says by its nature, management is “about control”. “It’s very difficult for managers to give up that control. However, they have

to see their role less about control and more about fostering people’s talent and being a resource – saying, ‘This is the vision, how can you contribute? You go off and try that and I’ll be there as a trusted adviser’.” Great leaders inspire vision and confidence, he says, and he suggests that managers look back to the most influential managers in their own lives for inspiration. “Fundamentally, leadership is about a relationship. The people who’ve had an effect on your life are probably not the most intelligent or the most gifted, but they had a relationship with you; they had a set of values that rang true and resonated. They modelled a way to be a human being, so you said: ‘That’s like me, and I want to be more like you’.” Some managers are mired in old styles of management that do them no good in today’s business world, says Newman. “Everything we thought we knew about how we motivate people down through human history, we were dead wrong about,” he says. “We used to think it was about ‘sticks’ or ‘carrots’. ‘Sticks’ were holding people up to public ridicule. The business community looked at this model and emulated it for a while. We were driving performance through fear.” Then, for a while, a business model of ‘carrots’ became popular. “Enlightened leaders said if we pay people obscene amounts of money, they will perform. But then we discovered that there is a certain threshold beyond which money will not make a difference.” Today business psychologists realise that leaders who tap into people’s aspirations are the most successful, says Newman, and 40 percent of New Zealanders identify that skill as the single most important quality leaders can have. Newman says there are three ap-

proaches to leading successfully. “You need to recognise how to tap into people’s aspirations and create compelling visions, helping team members to realise their dreams. You need to understand the need to belong, and how relationships pull teams together to create remarkable things. Finally, you need to tap into emotions and move beyond financial aspects to the emotional assets.”

Jane McCann.

STORYTELLING

Storytelling is a big part of the new leadership style, says Newman. He says stories you have to tell your staff are: where they’re going; where ‘we’ are going – the organisational story; and your own personal story. Sharing your own story is one aspect some leaders find hard to accept, because in management theory it used to be frowned upon to share socially with staff. Not any more, says Newman. “Leaders who remain remote shortchange organisations – it’s the personal story that brings to life what the organisation is. The skill of self-

about stress resilience. It can be a big issue if you come from a testy meeting and you have to suddenly change your state from agitated to calm.” McCann says as a leader’s job becomes more complex, leaders are being expected to get different outcomes than in the past. “It’s not about the detail, it’s about the outcome we are going for – a

“MANAGERS NEED TO UNDERSTAND THE NEED TO BELONG AND HOW RELATIONSHIPS PULL TEAMS TOGETHER TO CREATE REMARKABLE THINGS.” disclosure gives people access to an aspect of your life. Leadership is about character, competence, a track record, then connection, an emotional connection: does this person meet me as a human being?” McCann says one trend she is seeing is a big increase in soul and spirituality in business. “Many people now in our leadership programmes would do a short meditation course. We teach people

good organisational outcome, a good corporate outcome, an outcome that’s good for unions, plus good societal outcomes.” Take Cadbury, she says, where a brand was damaged by an ethical controversy over palm oil. “It only takes one or two examples to affect your image.” McCann says two of the companies she works with have trialled bringing their team members into high-level

AUGUST 2010 Management www.management.co.nz 35

LEADERSHIP

discussions. “They sit around the table on the understanding that they can’t disclose what’s said around the table.” When leaders can discuss high-level, large-scale changes with frontline staff there, this is building trust and transparency. “With the speed of social media networking these little examples of trust get magnified – but so does one little example of distrust.” Both Newman and McCann talk about mirror neurons in the brain that fire automatically when you see a behaviour, making you want to copy it, much as a baby will poke its tongue out at you when it sees you do it. “Mirror neurons are the single greatest drivers of behaviour,” says Newman. “They reflect what you see.” Says McCann: “Mirror neurons mean that people want to role model the leadership at the top. People don’t want rock star leaders who won’t walk

the talk. They want ethical, authentic, reflective leaders, a leader they can look to as a role model.” She says leaders need to rethink the language they use. When they talk to staff, they shouldn’t say: “How are you?” They should say things like: “Tell me about what’s important about your work.” She calls these “powerful questions”, which result in better exchanges, which make people feel comfortable talking about their work. IT’S ALL ABOUT PEOPLE

Dr Roy Stager Jacques, an American who is currently associate professor at Massey University’s Department of Management, says he’s observed that Kiwi business culture has not yet real-

MOST-WANTED CEOS WHAT SKILLS ARE COMPANIES ASKING RECRUITERS FOR IN TODAY’S SENIOR MANAGERS? Primarily they are seeking leadership, says Stephen Leavy, a principal of Hobson Leavy Executive Search. “Often with New Zealand management there is a focus on thinking small; almost a fear to take bold decisions in case they do not work out. “What we are finding from clients is that they are seeking executives who are not afraid to make bold decisions based on a careful calculation of risk and opportunity. They also seek leaders who can think laterally; who do not just run with the herd, but have out-ofleftfield ideas.” One of the key leadership skills required is flexibility, says Leavy. “We really do live in an ever-changing world and the pace of change is accelerating. The best CEOs anticipate every possible development and have contingency plans in place for those. They also react rapidly as events shift around them.” Confidence is also a required attribute for executives seeking to climb the career ladder, he says. “Our observation over the years is that candidates who cannot sell themselves well simply do not get out of the starting block.” Leavy says one aspect that has perhaps changed over the past 10 to 20 years is that staying in a role for a long period of time is not necessarily viewed as a positive any more. “Applicants seem to be more successful if they have shown an ability to work across a variety of industries and been successful in a number of different companies.”

36 www.management.co.nz Management AUGUST 2010

ised the importance of recognising people are not machines. “It is a formalised culture in which attention is given to strategy, plans and procedures. It is as though managers only need to understand what they want to do, not the how. While attention to people is undervalued in the United States, the notion that management is about influencing people has been important for about 100 years.” He says since the first decades of the 20th century, and their assembly line environments, managers have known that employees who did their best, as opposed to those who did what they had to, made a significant difference to business success and profitability. “Yet, every day I encounter an experience that shows a complete lack of awareness of this fact.” The manager of the future is going to have to recognise that people are guided by feelings most of the time, is going to have to see business as a network of relationships and is going to have to manage using a language in which words like trust, commitment, respect and caring are central, says Stager Jacques. Ultimately, says Newman, you want people who wouldn’t work anywhere else, because they want to work for you. “The new skills managers need in business are to be nimble, responsive and adaptable. Managers most likely to succeed are those who have earned the trust of people who work across the business.” M Martyn Newman’s book Emotional Capitalists – The New Leaders is published by John Wiley. RRP: $47.99. Jane McCann is speaking at the HRINZ conference in Wellington on September 2.

{

An army of a thousand is easy to find, but, ah, how difficult to find a general Chinese Proverb

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

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LEADERSHIP

The curse of the

overachiever If you believe too many executives think, “It’s all about me”, you’re right. Research shows that an ethos celebrating individual achievements has been shoving aside other motivations, including empowering people, say Hay Group Boston’s Scott W Spreier, Mary H Fontaine and Ruth L Malloy.

Scott W Spreier.

he desire to achiev achieve is a major source of strength in business, both for individual managers and for the teams they led. It generates passion and energy, which fuel growth and help companies sustain performance over the long term. And the achievement drive is on the rise. We’ve spent 35 years assessing executive motivation, and we’ve seen a steady increase during the past decade in the number of managers for whom achievement is the primary motive. Businesses have benefited from this trend: Productivity has risen, and innovation, as measured by the number

Mary H Fontaine.

of patents issued per year, has soared. In the short term, through sheer drive and determination, overachieving leaders may be very successful, but there’s a dark side to the achievement motive. By relentless focusing on tasks and goals – revenues or sales targets, say – an executive can, over time, damage performance. Overachievers tend to command and coerce, rather than coach and collaborate, thus stifling subordinates. They take frequent short-cuts and forget to communicate crucial information, and they may be oblivious of the concerns of others. Their teams’ performance begins

38 www.management.co.nz Management AUGUST 2010

Ruth L Malloy.

to suffer and they risk missing the very goals that initially triggered the achievement-oriented behaviour. Too intense a focus on achievement can demolish trust and undermine morale, measurably reducing workplace productivity and eroding confidence in management, both inside and outside the corporation. While profits and innovation have risen during the past decade, public trust in business has slid. In our executive coaching practice, we’ve seen very talented leaders crash and burn as they put ever more pressure on their employees and themselves to produce.

At the extreme are leaders like Enron’s Jeffrey Skilling, a classic overachiever by most accounts, driven by results regardless of how they were achieved. He pitted manager against manager and once even praised an executive who went behind his back to create a service he had forbidden her to develop. For every Skilling, there are dozens of overachieving managers who don’t make headlines, but do cause significant harm. On the surface, controlling achievement overdrive sounds like Management 101: Be less coercive and more

“SOME HIGH ACHIEVERS ‘ARE SO FIXATED ON FINDING A SHORTCUT TO THE GOAL’, HE NOTED, ‘THAT THEY MAY NOT BE TOO PARTICULAR ABOUT THE MEANS THEY USE TO REACH IT’.” collaborative. Influence rather than direct. Focus more on people and less on numbers and results. Easy to say, difficult to master. Experienced, successful executives who should know better fall into overachievement mode again and again. THE DRIVE TO ACHIEVE

The drive to achieve is tough to resist. Most people in Western cultures are taught from early childhood to value achievement. For some people, the drive seems innate: They don’t just know achievement is important, they feel it. Accomplishment is a natural

high for them. David McClelland, the late Harvard psychologist, identified achievement – meeting or exceeding a standard of excellence or improving personal performance – as one of three internal drivers that explain how we behave (‘affiliation’, or relationships, and ‘power’ are the other two). He initially believed that of the three, achievement was the most critical to organisational success. But McClelland also recognised the downside of achievement: the tendencies to cheat and cut corners and to leave people out of the loop. Some high achievers “are so fixated on finding a shortcut to the goal”, he noted, “that they may not be too particular about the means they use to reach it”. In later work he argued that the most effective leaders were primarily motivated by socialised power: they channelled their efforts into helping others become successful. We continued McClelland’s work with assessments of managers’ motives. Beginning in the mid-1990s, achievement scores began rising dramatically, while the power drive declined and the affiliation stayed more or less steady. We can’t say exactly what triggered the increase, but we believe it was driven by the organisational, market and economic forces that were in play. Recession and downsizing brought an increased emphasis on short-term performance and growth. Again, both goals were a perfect fit for the high achievers, who revel in the need for personal heroics and the challenge of an ever-rising performance bar. Whatever the cause, the rise in scores coincided with increases in several of McClelland’s other indicators of high achievement – in particular, economic growth, innovation, cheating, and cutting corners. Organisational performance and innovation improved. But there was also a lapse in business ethics and, as a result, more high-profile scandals and reduced public trust in big corporations.

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LEADERSHIP

THE SIX STYLES OF LEADERSHIP

Despite the advantages of an achievement mentality, executives who are overly motivated to achieve can weaken a company’s or group’s working climate and, in turn, its ability to perform well. That’s because a leader’s motives affect the way he or she leads. In our research over the years we’ve identified six styles of leadership that managers and executives use to motivate, reward, direct and develop others. They are directive (strong, sometimes coercive), visionary, affiliative, participative, pacesetting (personal heroics) and coaching. There is no one best style of leadership. Each has its strengths and its limits. The most effective leaders are adept at all six leadership styles and use each when appropriate. Typically, however, a manager defaults to the styles he or she is most comfortable using, a preference that reflects the person’s dominant motive combined with the level of pressure in the workplace. People motivated mainly by achievement tend to favour pacesetting in low-pressure situations but to become directive when the pressure is on. It’s not surprising that such pacesetting and coercion have been shown to suppress work-climate attributes that contribute to high performance, including flexibility, responsibility, team commitment and the extent to which feedback and reward are linked to performance. People high in socialised power, by contrast, naturally gravitate to coaching in low-pressure situations and become visionary under pressure. RECOGNISING YOUR MOTIVES

The good news about achievers is that when given a goal, they pull out all the stops to reach it – even if their goal is to manage their achievement drive. For an overachiever seeking to broaden his or her range, the first step is to become aware how motives influence leadership style. Often it takes a nudge from someone to get the transformation moving.

If you are seeking to assess yourself as a manager, you can get a good sense of which drive is dominant in you simply by examining the activities you like and why. People with high achievement drives tend to like challenging projects that allow them to accomplish something new. They also like to outperform people who represent a high standard of excellence. Achievers’ communications tend to be brief and to the point. Those high in affirmation are energised by personal relationships, are driven by status and image. Those driven by socialised power enjoy making a positive impact and get satisfaction from helping people feel stronger and more capable. MANAGING YOUR MOTIVES

Even trickier and more important than recognising an overactive drive to achieve is to figure out how to channel

at-all-costs mentality. Most organisations are less calculating; they simply select and promote high achievers for their obvious assets, let nature take its course, and then look the other way as long as the numbers are good. But companies can redirect their focus and still achieve good numbers. In the early 1990s when CEO Lou Gerstner set out to regain IBM’s market dominance by transforming the company into a flatter, matrix-driven organisation, he sought managers who would orchestrate and enable, rather than command and control. He knew IBM needed to move away from its culture of personal heroics and individual achievement and begin valuing socialised power and managers who pay attention to the greater needs of the company. We assessed the motives and leadership styles of 2000 IBM managers including the top 300 leaders. Two years ago when we returned to assist IBM in recalibrating the competency model,

“THE GOOD NEWS ABOUT ACHIEVERS IS THAT WHEN GIVEN A GOAL, THEY PULL OUT ALL THE STOPS TO REACH IT – EVEN IF THEIR GOAL IS TO MANAGE THEIR ACHIEVEMENT DRIVE.” that drive into new behaviours and continually practise them until they become almost second nature. Another trick is to look to other areas of your life to satisfy your achievement drive. One executive, recognising that his need to succeed was getting in the way of his effectiveness, refocused his drive on building violins at home on his weekends. Another turned to restoring antique sports cars. While behaviour is the responsibility of the individual, organisations play a role, if sometime unintentionally, in influencing executives’ actions. Some companies unabashedly create cultures that foster and reward the achievement-

40 www.management.co.nz Management AUGUST 2010

we found a very different leadership culture. Gone was the combative, turfprotecting, isolationist attitude. In its place was an emerging culture of collaboration and team leadership. Of course a high achievement drive is still a source of strength. But companies must learn when to rein it in. M

CEOs struggle to cope Many CEOs feel inadequately equipped to deal with the complexities of modern business.

usiness is getting just too complex and ingly more closely linked with developing challenging: you might have thought and global markets, as well as the impact it but now you know you’re not alone. of regulation and technology on organisaLess than half of CEOs worldwide tions. “This is creating a world of complexbelieve their enterprises are adequately ity for organisations and presents both prepared to handle a highly volatile, in- significant challenges and opportunities.” creasingly complex business environment, Tony Carter, managing director of according to a major new survey. Foodstuffs Auckland, who participated But the figure is even worse among in the study, says there is no doubt that New Zealand and Australian CEOs. business has become more complex over The IBM 2010 Global CEO Study the past few years which has dramatically uncovers for the first time starkly di- increased the challenges that CEOs face. vergent concerns and priorities among Based on face-to-face interviews Australia and New Zealand compared conducted by IBM business consultants, to CEOs in Asia, Europe the 2010 IBM CEO Study or North America. reveals that globally CEOs An astounding number believe that navigating an of Australasian CEOs told increasing complex world the study they feel illwill require creativity, equipped to cope with which emerged as the top this drastically different leadership competency. world. Eighty-four percent However New Zealand of the Australian and New and Australian CEOs difZealand CEOs interviewed fer and place integrity Ross Pearce compiled the New Zealand CEO data. said they expect the level of before creativity as the key complexity to grow signifileadership competency, cantly over the next five years, but only 39 which comes as no surprise to Carter. “In percent believe they know how to deal with my experience values are the glue that hold it successfully. organisations together and acting with This is the first time such clear regional integrity is one of the key attributes of a variations have appeared in this biennial good leader.” survey of private and public sector leaders, The survey shows 53 percent of Australsays local leader of the study, Ross Pearce, asian CEOs use iterative strategic planning organisation and people practice leader of processes as distinct from formal annual IBM New Zealand. This year, IBM surveyed strategy reviews, and only 25 percent favour more than 1500 CEOs from 60 countries, quick decisions – compared with a global including 22 from New Zealand. average of 33 percent. Australasian leaders The ‘complexity gap’, brought by the are also willing to embrace new manageexplosion of data and volatility of global ment and communication techniques. economies, poses more serious challenges Australasian CEOs are especially dethan any other factor measured in the termined to put customers – or citizens, eight years IBM has been conducting this in the case of public sector leaders – front research, says Pearce, and is larger here than and centre. “Getting connected” to better in any other part of the world. understand, predict and give customers He believes it demonstrates how our what they really want is the top priority economy and society is becoming increas- for 91 percent. M

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LEADERSHIP – THE FUTURE

A man of

PASSION Graeme Dingle.

The young people who will be our leaders of tomorrow give inspirational Kiwi Graeme Dingle confidence in New Zealand’s future. Brenna Cukier, 17, interviewed him.

n a world where blockbuster films predict doom for society, one man stands by his optimistic outlook for the future. Graeme Dingle, founder of the Sir Edmund Hilary Outdoor Pursuits Centre and the Foundation for Youth Development (FYD), says New Zealand can be assured that the young people of today will step up to successfully replace our current leaders. “I think we’ve got a lot of talented leadership in this country, we might even have too much talent,” he says, as he takes a sip of coffee. Two small dogs prance around his ankles as we sit at a small white table in a humble room. “I think if we can, as a country, ever pool all the talent we’ve got together, we’ll be a real force to be reckoned with. But we tend to have this small island isolation mentality. So if we can get

past that, I’m very optimistic about New Zealand’s leadership.” After returning from the first traverse of the Southern Alps at the age of 26, Dingle turned his attention to providing New Zealand youth with skills to achieve their aspirations. His inspiration to set up what was essentially a new industry came from his mountaineering companion. “She said to me: ‘Graeme, life is a cup to be filled, not a measure to be drained’. I looked at her and thought: ‘What the hell does that mean?’,” he laughs. Dingle soon discovered he could fill his cup by helping the community in a way no one had before, and thus he founded what is now the Outdoor Pursuits Centre. “That was kind of the beginning of the leadership stuff for me. I guess I had the beginnings of

Graeme Dingle’s programmes develop children’s confidence and leadership skills.

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some leadership qualities; I led people up mountains, but in the big picture I wasn’t much of a leader at all. But now I was in a situation where I had to lead properly.” Eventually, Dingle and his wife Joanne Wilkinson set up the Foundation for Youth Development, providing continued support for aspiring young Kiwis. They offer programmes to all school-age New Zealand children, which help to promote the importance of values, aspirations, and self-esteem. In answer to the age-old question about whether leaders are born or created Dingle responds: “Leaders develop. Clearly the big test is how much you can inspire someone to do something extraordinary or even just ordinary.” Dingle fondly recalls a young female teacher who told him he had the potential to become a great artist. He also had a former boss who would constantly give him physical challenges to test his strength. “But I think the first really important kind of mentor for me, though he wouldn’t have called himself that, was Ed Hillary.” Dingle’s favourite quote, is: “We need to think laterally and act in a very focused way,” and he believes these are critical skills everyone must learn in order to achieve in leadership as well as any other aspect of life. As he heads off to pack for an expedition to Peru the next day, it’s clear that although Dingle’s coffee has very much been drained, his cup is still in the process of being filled. M

Escalator

WOMEN How can women move to the next level in management? Dame Jenny Shipley tells Brenda Ward about an exciting new initiative.

ame Jenny Shipley is smiling. She has just launched something she feels passionate about, that will help companies, help women and help New Zealand. Shipley was one of the women who helped break down the gender barriers of politics, as New Zealand’s first woman prime minister from 1997 to 1999. But as the surge of women leaders has slowed, her ambitions are for the next generation of female leaders. As chair of its advisory committee, she has just launched the Global Women Breakthrough Programme, an escalator course to speed up women leaders’ maturity in business. The reasons for it were obvious, she says. “It became very clear that there were two groups – a group of women who were about to break through and also a group of companies wanting to bring women through so their companies were more able to deal with a diverse range of issues in their boardrooms and senior executive teams.” Shipley says research around the world shows if you have a wide range of skills and experience in management, a company will perform better. Global Women determined New Zealand did not have a highly focused leadership programme for women in senior leadership and decided to launch a 12month course of coaching, workshops and intensive mentoring that would be available at reasonable cost. “It’s an escalator for women who are self-identified, or it may be that compa-

A LD BOOVE M RA FO W LA M FIR

Dame Jenny Shipley says Global Women is committed to the next generation of women leaders.

nies will wish to invest in their women and put them through a learning experience for a 12-month period.” The programme’s strength is the willingness of high-level Kiwi women abroad to mentor those with potential, but little experience. The ‘old boys’ network’ is a reality in the senior New Zealand business environment, says Shipley. “Many women tend not to have had the chance to make these connections. Accelerating the maturing of experienced people should make these women irresistible candidates for management; it will make them extremely attractive contenders.” She says among the mentors available through the programme are women succeeding globally at the top level of their game. “There are great role models who will share strategies and share experience.” The programme will be limited to just 20 graduates in any 12 months. “We are committed to investing in a generation of women leaders who can help drive growth.” M

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LEADERSHIP

Energy to burn Young engineer Brett Christie has gathered 3000 young professionals into networking groups around the country – and this overachiever still finds time to be a fitness instructor. Janine Ogier is amazed.

His life is all about meeting people and the classes he leads are just one of his many networking forums. By far his most impressive feat is launching the Young Professionals, a Canterbury-based concept that has now grown to include nine groups and 3000 young business people round the country. He typifies Gen-Y and his zeal is infectious, if a little daunting. PHOTO: SIMON BAKER

rett Christie’s enthusiasm for life is contagious. He’s just pushed 50 gym members to their physical limits through a full-on cardio workout. He’s grinning and the participants are obviously happily exhausted. As he winds down after the session as a group fitness instructor at Les Mills Christchurch, Christie admits to having a hectic professional and social calendar.

Brett Christie wanted to break the ‘What school did you go to?’ psyche of Christchurch’s business networks.

44 www.management.co.nz Management AUGUST 2010

His gym career came about after being left for dust on a mountain bike trip with his brother and father. Christie wanted to get fitter – he became, in his own words, “a fitness freak”. He made so much noise and had so much energy in the group fitness classes he attended, he was asked to be an instructor. Christie can talk. And talk some more. He’s such a natural communicator, and he is so genuine, his energy and noise are smoothly converted into motivational and inspirational messages. It’s a surprise to find out that his profession is structural engineering, and he’s the first to say he is not a typical engineer. It is no shock to hear that his employer, engineering consultancy Beca, utilises his communications skills by having him speak to graduates and potential employees at University of Canterbury functions. Christie worked as a structural draughtsman after high school then left Palmerston North for Christchurch to attend the University of Canterbury’s School of Engineering. Like most students, he joined a society, Ensoc, to make friends in a new place. The camaraderie of those student days left an impression. Twenty-eight-year-old Christie is now president of Canterbury Young Professionals (CYP), which for the last three years has brought together young Christchurch people for social and business networking. He says there was an obvious gap in the professional socialising market for younger people who understood the importance of networking, but were at a loss as to where to start. “I wanted to break down the silos of

PHOTO: SIMON BAKER

industry for young professionals,” Christie says. Rather than having accountants meeting with accountants, and lawyers networking with other lawyers in industry groups, the group’s founders wanted to set up meetings for all professions. But the reality of networking in Christchurch is that it was all about ‘what school did you go to’, which can isolate newcomers and locals alike. The group’s founders, some from out of town like Christie and others from the ‘right’ schools in Christchurch, wanted to eliminate this barrier and create opportunities for young professionals from all walks of life to meet on equal terms. It’s been a Gen-Y style revolution. “Life is all about who you know. We are giving people access so they can get to know more people,” Christie says. “You can’t attract business or get further in your career if you don’t associate with people who can give you business.” The Canterbury group’s growth has been through word of mouth, email and social media, given the demographics of the members. Sponsorship means the not-for-profit organisation can heavily subsidise its social occasions and provide high-calibre business training at a low cost. Members tend to be under 30 and in the first five years of their careers and they don’t necessarily have a tertiary qualification. It is a fairly even split between men and women, says Christie. Christie was instrumental in the group’s emergence in Christchurch networking circles and cemented the relations with sponsors and the New Zealand Institute of Management. In 2008, NZIM Southern approached the group to participate in its management training programme. NZIM Southern acting chief executive Tom McBrearty says it is a win-win relationship. Young professionals have the chance to be mentored by NZIM members who are in the positions of responsibility they aspire to, while the more experienced business people have the chance to understand what is driving Gen Y. The word-of-mouth marketing for

Brett Christie is as excited about running a cardio class as he is running a group for young professionals.

the Canterbury group has also triggered interest from other centres. The young professionals society concept has now spread to Dunedin, Wellington, Auckland, Nelson, Queenstown, the Bay of Plenty, Taranaki, and Hawkes Bay. A national umbrella organisation is planned, the New Zealand Young Professionals. Says Christie: “I find energy from the things in my life that make me happy.

Since becoming a fitness freak, I have been able to achieve more because I have more energy. “The skills that I am attaining from the group and Les Mills have also redirected where I want to be at Beca. I have discovered that I have a real passion for business management, leadership, marketing and business development,” Christie says. M

AUGUST 2010 Management www.management.co.nz 45

smartcompany A BIG

Fish IN THE Pond Daniel Robertson was a university student when he launched an online book retailing company. It’s now turning over $50 million a year, proving that a small Fishpond can swim in a big net, says Brenda Ward. Ward

here’s a sign on the door that says ‘Aquarium’. Behind this cryptic label is a room where Fishpond staff can play. There’s a pool table, casual chairs and polaroids of team members stuck inside a wall-sized Fishpond smiling fish logo. But Daniel Robertson doesn’t need to come here to play. Every day for him is play, and every year he’s playing in a different place.“This is our fourth building in six years,” he admits, a little shame-faced. “The problem is, the company keeps getting bigger and outgrowing its premises, and that means another move. It’s getting expensive.” Surely getting bigger is not a problem. Robertson grins, looking, at 29, more than ever like one of the junior staff, in his illfitting Fishpond uniform shirt and pants. “We started without stock, just ordering from suppliers, but keeping stock of the most popular items allows us to fulfil orders faster.” Speed is the name of the game, when your major advantage over your international competitors is next-day delivery. “At Amazon they can’t physically get something to you next day, so that’s good for us.” That explains the rows of bookshelves

in the company’s huge warehouse near Auckland airport. Here are the popular titles that can be grabbed and shipped immediately round the country. The number of staff has grown enormously since the days when Robertson’s first staff member was a school student who did accounts and data entry in his living room. For a time, he also recruited staff through WINZ subsidies for the unemployed. There are now 75 people working for Fishpond, many of them remotely from home. Some of the development team are based offshore and IT support is on shifts around the clock. The business has become so big, it has to be a 24-hour operation waiting to pounce on all the customer mouse clicks at all hours of the day and night. Robertson and his team must be doing something right. The company is doubling in size every year. But he’s a humble kind of chief executive, who freely admits he fell into business with no experience. “I was at university studying electrical engineering and after three and a half years I decided that it wasn’t for me. I made the decision to start a business.

46 www.management.co.nz Management AUGUST 2010

“I thought retail would be easy – just buy something someone else has produced, add a bit of a mark-up and sell it on again. And I decided on online retailing because I saw that overseas customers had a lot more choice in online stores and the quality of those stores was a lot better than we had in New Zealand. I saw there was a gap in the market.” He believes online retailing will become an increasingly important part of the retail landscape, with its obvious advantages. “You’re not constrained by space and you have an infinite shelf that conventional retailers would give their eye-teeth for. You can be more efficient because you don’t have to fill shelves and you can pass those savings on to the customer.” Getting started was as simple as installing a free open-source website package he found on the internet. Robertson added products to it one by one. His marketing tool was Google Ad Words, with ads positioned so that customers searching Google for keywords would find themselves side-tracked by Fishpond ads for books on that topic. “When there were four of us working out of a bedroom it got pretty squashed, so

we moved out to Wiri. Then each day, each week, each month, we just got a little bigger. Each year we’ve doubled in sales so six to seven years on, it becomes a reasonably big number, but we’re still small compared to most retailers.” Small? Despite his modesty, an inventory of 3.2 million titles has catapulted Fishpond to New Zealand’s largest online retailer, a fact that’s proudly sign-written on the company’s warehouse. Some of that size is due to second-hand sales. “With our system you just search for the title and, say, the condition of the book and the price and you’re in,” boasts Robertson. But books are just the start. The plan was always to start small and build a base to grow from, he says. Already Robertson has added toys and electronic goods categories. Does that mean another move to an even larger warehouse? Maybe, maybe not.“The perfect base model is to source as much as you can on demand, or just in time.”

In recent years, Robertson has employed two managers to help him in areas where he has no formal expertise. “This is my first real job and I didn’t do any business or management degree. It’s only been in the last two and a half years that we’ve

“I THOUGHT RETAIL WOULD BE EASY – JUST BUY SOMETHING SOMEONE ELSE HAS PRODUCED, ADD A BIT OF A MARK-UP AND SELL IT ON AGAIN.” been able to afford to hire managers.” He also has some high-powered help to grow the business. An investor came on board last year, private equity company Direct Capital. Rowan Simpson, the third partner in TradeMe with Sam and Gareth Morgan, is on the advisory board. Early on Maurice Brigham of PC Direct, then Exonet and

INDUSTRIAL

LAND THAT’S MADE TO FIT

Sealegs, was involved and he’s now a director. “Being very inexperienced myself, it’s good to surround myself with people who’ve done it before.” So, does he plan to retire a millionaire at 30? He could spend more time with his

wife Yvette, who used to work for Fishpond in the early days, and his daughters, aged 3, and 7 months. “No,” he laughs. “I have the workaholic gene, so I’ll keep on growing, employing more people, getting more skills. There’s quite a few years of growth in it still. I’m having fun, so while I’m having fun, I’ll keep going,” he quips as he heads back to play some more. M

Izone, Canterbury’s Southern Business Hub, can fashion industrial land to suit your plans. First we analyse how your current operations measure up, then tailor design/build solutions with the option to lease back. The right land, in the right place, at the right price. Izone offers individually crafted industrial land packages that are made to ﬁt.

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SDC205

AUGUST 2010 Management www.management.co.nz 47

FACE TO FACE

Jeffrey Wigand: ‘Don’t call me a whistle-blower’ Just how different is Jeffery Wigand from the character Russell Crowe played in The Insider? Reg Birchfield found that the man who exposed tobacco’s deadly governance practices is even more heroic in real life.

effery Wigand looked tired. He had just a handful of hours left before he could sink into the seat of the aircraft that would deliver the native-born New Yorker home to Mt Pleasant, Michigan, where he now lives. He had completed an exhausting week of lectures, parliamentary select committee hearings, media interviews and into-the-night conversations on the evils of the global tobacco industry and its products. Parliament’s Maori Affairs Select Committee inquiry into the tobacco industry and the consequences of its use on Maori had invited Dr Wigand as an internationally recognised scientific expert on tobacco use. Anti-smoking lobby ASH (Action on Smoking and Health) sponsored his trip.

The softly spoken Wigand is also the world’s loudest corporate whistle-blower, a term he would prefer was struck from the organisational lexicon. “I use the term ‘person of conscience’,” he says. “Whistleblower has pejorative connotations, such as tattle-tale, rat or snitch. These don’t take into consideration the hierarchy of values when they see harm or wrong being committed. He thinks whistle-blowing, or taking a moral stance on immoral commercial actions, should be encouraged rather than ridiculed. “Persons of conscience are very important,” he says, because they save lives and expose corporate fraud, frequently at their own expense and exposure to personal harm. Wigand was, between 1988 and

Russell Crowe (right) played Wigand in the movie The Insider.

48 www.management.co.nz Management AUGUST 2010

1993, vice-president for research and development at Brown and Williamson, a Louisville, Kentucky-based subsidiary of the giant British and American Tobacco company (BAT). But he turned his back on the company and his generous salary and instead exposed the tobacco industry’s fraudulent health claims of safe smoking. His whistle-blowing experiences and sometimes life-threatening consequences were immortalised by actor Russell Crowe in the movie The Insider. Wigand joined Brown and Williamson to head what he believed was genuine scientific-based research to make a safer cigarette. It was, he says reflectively, “the worst career decision I ever made”. For the world at large it was more a fortunate blunder. He created, and continues to work for, a greater global understanding of what he effectively calls the tobacco industry’s treachery. Immoral leadership and corporate governance is, as also witnessed now in the investment banking and finance industries, at the heart of the tobacco industry’s deception story. What Wigand found were tobacco industry directors and senior executives “engaged deliberately and consciously in deceiving, obfuscating and generating scientific controversy about a product they knew, when used, killed not only the user but also the innocent bystander”. “They did that for one reason, and one reason only,” he adds. “For money. For profit. Tobacco is a very profitable product. It has for decades, if not

centuries, generated enormous wealth for [the owners of] the tobacco companies.” “That wealth is used to hire lawyers, public relations firms, ad agencies, marketing companies, behavioural psychologists and people willing to take money to do the work of the tobacco industry to continue the deception.” A recent United States court decision, in a finding for the US Department of Justice, called tobacco companies “racketeers” for their behaviour over the past 50 years. “That’s the same moniker you would put on a gangster of an organised crime entity,” says Wigand. Wigand is now, among many other things, a lecturer on ethical governance. And while he concedes the tobacco industry story is perhaps the world’s worst example of “shameful” governance, there are, he says, “many examples of the lack of moral and ethical fibre at the governance and leadership level of organisations – from the clergy to Enron”. Corruption at the top is, he thinks, a habit that was explained by the philosopher Aristotle. “It is about getting early rewards and learning the habits of getting materialistic gains quickly by cutting corners, rather than by doing things for moralistic reasons. “The tobacco companies are probably the most egregious in their behaviour. They have cost individuals and governments billions of dollars. Its death toll exceeds that of all those killed in the combined major wars. They [tobacco companies] are in the forefront when it comes to a lack of moral leadership in their corporate structure and governance.” Wigand says cigarette company directors, senior managers and contractors, such as their lawyers and marketers, work together on a systematic conspiracy to deceive all stakeholders other than shareholders and themselves. “I attended a meeting of all the heads of research of BAT in which the minutes enunciated clearly the understanding that nicotine was addictive, tar was the product’s baggage, and to move forward, the company would have to change the design of the

Jeffery Wigand seems too softly spoken to be the world’s loudest whistle-blower.

product to get, what I thought I was hired for, a safer product.” That 12-and-a-half page set of minutes caused director and senior management outrage and, according to Wigand, was subsequently sanitised. “We had created a document which might have to be produced in any subsequent litigation [against the company]. It showed very clearly that BAT had two sets of standards – one for what could be known internally and another for material which they were prepared to use externally and even under oath. This was all known at board level,” he adds. “An attorney who was not even present at the meeting was ordered to sanitise the minutes so that they became vanilla and could not be traced back to the original document. That episode reached the highest levels of the board of BAT Industries,

including the UK chairman of the day, Sir Patrick Sheehy.” BAT’s solicitor general was subsequently dispatched to New York where Brown and Williamson’s scientists and senior management were told that any time they had a meeting, wrote a report or decided to do or file something, a lawyer would be involved. All documents, they were told, would be sighted by a lawyer who would edit, vet or send them back beyond any level where (legal) discovery could kick in. “This might seem extreme but it is not unusual,” says Wigand. “The company talked about cigarettes and marketing strategies that would ‘hook ‘em young, hook ‘em for life’. Their general counsel in the 1950s and ’60s talked about the company being in the covert pharmaceutical business.

AUGUST 2010 Management www.management.co.nz 49

FACE TO FACE

“They talked about nicotine being our product and tar our negative baggage. This is a long history of a continued propagation of misinformation, deliberately protecting the interests of the company by keeping the truth from the public.” There is, according to Wigand, a slowly gathering international acceptance that incompetent commercial governance is at the heart of many of the world’s environmental, social and political problems and that action must be taken to shake up the governance model. The problem the world has with the tobacco industry, where it is obvious there is no reason other than money to be associated with such a harmful enterprise, is that it has been legal to manufacture and sell for a long time. Graeme Amey, general manager for BAT New Zealand, told the Maori Affairs Select Committee that: “Tobacco is a legal product for adults over 18 years,” and that his company “operates within the legal framework as set by the New Zealand government.” In other words, if it’s legal to

THE TYLENOL CRISIS In October 1982, some capsules of Tylenol, a leading US painkiller, were injected with cyanide and replaced on outlet shelves for sale. Seven people in Chicago died after taking extra-strength Tylenol capsules. The tampering occurred once the product reached the shelves. They were removed from the shelves, infected with cyanide and returned to the shelves. The company immediately recalled the product America-wide – all 31 million bottles. It cost Johnson & Johnson around US$100 million. Although the company knew it was not responsible for the product-tampering, its board immediately assumed responsibility. In February 1986, when a woman was reported dead from cyanide poisoning in Tylenol capsules, the company permanently removed all Tylenol capsules from the market.

sell tobacco and make money from doing so, why worry about the science, or even the company’s now available internal findings that confirm nicotine is an addictive substance and smoking kills – about 5000 New Zealanders every year. The Select Committee is looking for evidence to support its case for a smokefree New Zealand by 2020. According to Wigand, most governments feel that overnight prohibition is impractical. “The practical approach, therefore, is to de-normalise and de-socialise smoking, because the industry’s leaders and their boards of directors in particular, show no interest in putting any moral consideration ahead of personal monetary ones. “The industry has absolutely no capacity for self-governance and selfregulation,” says Wigand. “If you don’t believe me, take the story of the fire-safe cigarette which tobacco company Philip Morris developed in 1986.” The fire-safe cigarette, according to Wigand, who read the company’s own scientific report, “was no more toxicologically burdensome, it looked and tasted just like their regular Marlboro brand cigarette and it was no more expensive to produce. The only difference was, if you did not puff on it, it self-extinguished and therefore was not an ignition source for starting a fire. “What did they do with it? They immediately rushed it out and offered it to the market because they knew it was morally the right thing to do,” he offers. Yeah right. “They put it on the shelf and waited for someone to legislate it. Meantime they nicknamed it Hamlet – to burn or not to burn.” Wigand’s point is that corporate morality is too often directly and exclusively linked to organisational profitability and personal financial gain. The tobacco industry is simply an extreme example of that relationship. So are most boards of directors, particularly of large enterprises, tarred with a similar brush? “I never saw it at [consumer products company] Johnson & Johnson or at [pharmaceutical company] Pfizer where I was a corporate officer,” says Wigand. “In

50 www.management.co.nz Management AUGUST 2010

my experience, the people around those board tables had the interests and credo of their companies at heart.” The problem, he thinks, lies less with the governance model and more with what he calls the “culture of the new generation” of corporate leaders, both directors and senior management. “They look for immediate and excessive rewards,” he says pointing to Wall Street’s egregious and unethical practices. “Their activities are in large measure responsible for the world’s current economic problems. “We have seen so many examples of poor corporate governance over the past two or so decades. It is a leadership issue. The tone and culture of an organisation comes from the top. If the leaders of an organisation do not have good moral fibre and don’t believe in the ‘categorical imperative’ of an obligation to behave morally in enterprise, rather than simply maximise profit, we will get more corrupt enterprises.” Are boards populated by people with the skills to deliver both effective and responsible governance? In the tobacco industry, Wigand thinks not. “Directors should be independent, not collective, thinkers who are less influenced by money, and more concerned with having a stake in the real interests of the enterprise. “Johnson & Johnson live and work their corporate credo. Customers first, product quality next. I worked for them through the Tylenol issue [see panel]. Their chief executive immediately pulled every bottle of Tylenol off the market when the poisoning scandal broke. It cost the company billions of dollars.” Wigand believes that organisations must learn to accommodate whistle-blowers – persons of conscience. “Responsible governance encourages openness,” he says. “Corporate leadership should encourage employees to come forward with issues so that they can be resolved internally rather than by going external. “Unfortunately, the corporate world has yet to accept or embrace this act,” he says.“It is, however, slowly addressing [the need for] more ethical and moral conduct.” M

You don’t get to be the leading educational insurance broker without examining all the risks. Dealing with the ever-present, ever-evolving risks facing today’s independent schools, takes extraordinary commitment and an intimate knowledge of their unique needs. As preferred partner to a signiﬁcant number of New Zealand’s independent schools, Marsh offers a level of risk analysis and protection simply unmatched in the industry. We’re immensely proud of the strength of the relationships we have built with our education sector clients, most notably the ISNZ members, as well as numerous state and tertiary educational organisations. If you’d like to learn what we can offer your school, call Kerry Gosper or Graeme Dando on 0800 627 744 for a no obligation risk analysis. And discover for yourself why Marsh is New Zealand’s leading education insurance specialist. And the world’s leading insurance broker and risk advisor.

Call 0800 627 744 or email info.marshnz@marsh.com Or visit www.marsh.co.nz for a comprehensive overview of our credentials.

EDUCATION

THE

right

✓

SCHOOL

Those involved in the private school sector say they are an important way to exercise choice in education.

rivate schools are no longer the sole domain of the wealthy and privileged. “Most people who choose to send their children to independent schools are ordinary people who have a huge desire to give their children a good start in life,” says Deborah James, executive director of Independent Schools of New Zealand. “The one commonality of private school parents is their commitment to the education of their children at the school of their choice.” She says many parents make huge sacrifices to exercise that choice and, increasingly, grandparents and extended family are contributing to the costs. Some choose a school for religious affiliation, others for the academic standing, the curriculum choices or extra-curricular options. Increasingly the qualifications framework offered by the school is a factor. All parents want to see their children in a school that best meets their

individual learning needs, James says. “Choosing the right school for your child is one of the most important decisions you will make on their behalf. New Zealand boasts a strong and robust education system, but in reality not every school suits every child and not every child suits every school.” Independent Schools of New Zealand represents 43 independent or private schools in New Zealand. Member schools educate 80 percent of the students in the private schools sector. Choice in education is imperative if we are to maximise the learning potential of every child, James believes. “The private schools sector best suits children who do not fit the one-size-fits-all state system. Take away the private schools sector and you strip parents of their right to choose the school that best meets the needs of their children.” Peter Crompton, principal of Ficino School, says when choosing a private school, parents are often wanting

Deborah James.

smaller class sizes where the teacher has a more detailed understanding of each student’s needs. “They are also often looking for more breadth in the curriculum, where the whole child is being educated not only their academic needs, but also in musical, dramatic and sporting prowess, which are key areas of a child’s development.” James says independent schools have more ability to innovate and cater for diversity than those limited by the state’s guidelines. “Examples include the use of

5,000 students. 10 schools. 3 countries.

One Goal.

To identify, understand and promote each individual student’s abilities. The ACG Group is proud to be entrusted with the education of 5,000 students, helping them become the best they can be. Many of today’s students will join the international leaders in ﬁelds as diverse as they are. Engineers and environmentalists; politicians and playwrights; artists and architects. There are no limits to young people with the right preparation for lifelong success. By bringing out the best of our students today, we help build a better world for tomorrow. ACG Parnell College | ACG Senior College | ACG Strathallan | ACG Sunderland | ACG New Zealand International College | ACG Norton College ACG English School | ACG International School Vietnam | The Australian International School Saigon | ACG International School Jakarta

52 www.management.co.nz Management AUGUST 2010

Scholarship That Unlocks Your Child’s Leadership Potential Ficino Primary and Intermediate School is offering four students the opportunity to unlock their true leadership potential, in a positive and aspirational environment. Up to four scholarships covering 50% of tuition fees and full uniform costs will be offered to students currently in year 6, to attend Ficino School for years 7 and 8, in 2011 and 2012. Principal Peter Crompton is looking for children who can demonstrate strong academic performance and talent in a sporting or cultural area.

“We’re keen to talk to students who can show citizenship, community spirit and leadership ability, qualities that are highly valued at Ficino School. It is also important that the student and their family have an empathy with the school’s special character,” says Mr Crompton. Located in Mt Eden, Ficino School offers a supportive and loving family environment. The school has a roll of 122 pupils from new entrants to year 8. The scholarship is a unique opportunity for children who demonstrate an enthusiasm for learning and self-development. “With our small class sizes, around 15 students in years 7 and 8, Ficino provides a unique values-centered, academically oriented education. Our senior students are given numerous leadership opportunities across a broad curriculum. They receive specialist subject teaching in both maths and science, giving them a head start for their secondary school education,” says Mr Crompton.

Ficino School welcomes enquiries and would be happy to arrange a personal tour of their facilities. Please phone 09 623 3385 or visit our website www.ﬁcino.school. nz for more information or to request a scholarship information pack. Applications for a 2011 scholarship to Ficino School close on 15 September, 2010.

Education that nurtures your child’s unique potential. Fundamental to the Ficino education is the commitment to exploring and revealing the storehouse of unique possibilities, the gifts for life already present within every child. The foundation for learning is a comprehensive academic, cultural and spiritual education. Core subjects like Mathematics, English and Science complemented by the likes of Drama, Art, Literature and Philosophy ensure that the children receive a variety from the very best that is available. For the comprehensive, formative education of the young mind, body and spirit, contact Ficino Primary and Intermediate School School today.

Phone (09) 623 3385 27 Esplanade Rd, Mt Eden, Auckland www.ﬁcino.school.nz SCHOOL TOURS

Friday 6 August Friday 10 September

EDUCATION

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54 www.management.co.nz Management AUGUST 2010

digital technologies in teaching and learning, richer and more extensive co-curricular offerings and increased options for senior school qualifications.â&#x20AC;? Crompton says in another example, Ficino School teaches Sanskrit, which gives the children an excellent foundation for clear enunciation and grammar. James argues that the Government has an opportunity to improve the overall performance of school education and reduce its own expenditure on school education by raising the subsidy rate to private schools above its present level. â&#x20AC;&#x153;An increased subsidy rate would make independent schools more affordable for more parents and the subsequent growth of the private schools sector would free up valuable resources for the state schools sector. The presence of a private schools sector in this country already provides a net fiscal benefit to the state of well over $150 million per annum.â&#x20AC;? James believes New Zealand should aspire to a system of education that is open to all. â&#x20AC;&#x153;All parents â&#x20AC;&#x201C; regardless of financial means â&#x20AC;&#x201C; should have the ability to choose where to send their children to school. That is social justice at its simplest.â&#x20AC;? M

WHAT TO LOOK FOR Clarence van der Wel, deputy chief executive of Academic Colleges Group. suggests parents should consider the ffollowing factors when looking for a private school: 1. Does it have high academic standards? Parents should check out the schoolâ&#x20AC;&#x2122;s academic record and make sure it delivers on what it promises. 2. Is it the right fit for the child? Look closely at the schoolâ&#x20AC;&#x2122;s ethos and overall educational philosophy. 3. Will students have extra tutoring support? The ACG schools provide each student with a personal tutor who is a member of the teaching staff and is in regular communication with the home. 4. Is there a range of sporting and cultural activities outside the classroom? Extra-curricular activities develop the interests and skills of students and broaden their range of experiences. 5. What is the schoolâ&#x20AC;&#x2122;s position on standards of behaviour? Each school should have a code of conduct under which it operates with clear expectations for students aimed at ensuring that all students are able to learn without hindrance or distraction. 6. Which qualifications? The University of Cambridge International Examinations (CIE) are offered by a number of private schools either as the only qualification or in tandem with NCEA. Other private schools offer NCEA alone or in combination with the International Baccalaureate (IB). Both IB and CIE are considered international qualifications.

AUGUST 2010 VOL 05 NUMBER 04

ISSN 1177-5815

ON MANAGEMENT

N NEW ZEALAND IINSTITUTE OF MANAGEMENT M IIN ACTION

YOUNG EXECUTIVE

OF THE YEAR I

t’s that time of year again, when the country’s best young executives have stepped up to be measured against their peers, and the regional judges have announced who will go on to contest the national NZIM/ Eagle Technology Young Executive of the Year Award final in December. Picking a single winner from each regional shortlist of high calibre entrants is challenge enough for judges, but the diversity of roles and organisations, backgrounds and levels of experience the entrants bring to the competition always adds to the complexity of the task. However, all three judging panels agree that this year’s regional winners were stand out choices, compared to past years where very little separated winners and runners up. “It’s a very fine line because they are all on the short list for a very good reason,” says Northern head judge Kevin Gaunt. “What counts is whether the person is managing, not whether they can run a specific type of organisation. As judges we really enjoy it and get a lot out of it – it reinvigorates us and we get a huge insight into what makes somebody successful as a current modern manager... In fact it changes us too, simply by going through the interviews!” Kevin says Northern candidates made the shortlist because they demonstrated the classic qualities that modern managers need. “They had very good knowledge of their companies or organisations. All of them had a good understanding of management practice and leadership, either through experience or qualifications, or both. They all had a good understanding of people

management and the issues around being able to communicate a vision and get people engaged. They were all strategic in their thinking and able to bring their strategies to a practical level, and they were all self-aware, which is a key management or leadership attribute.” “And it’s not only about the technical skill set, the formal education in management or their experience,” says Central head judge Kate Calvert. “It’s also about who they are as a person and what they’ve learned along the way. It’s good to hear someone admit they’ve messed up somewhere, because failures you can learn from. That’s what management is all about – you’re not always successful, you don’t always make the right decisions. So we don’t look for a text book answer, we really want to know what they think and who that person is that we’re talking to, and we don’t have an expectation that they’ve done everything perfectly.” What comes through clearly is the value all the candidates get out of the entry process, with signs many organisations are using the Award as an opportunity to acknowledge potential and develop their staff. “It’s a hugely positive exercise,” says Southern head judge Gordon Richards. “It provides a chance for the candidate to do a stock take of their own aspirations, their goals and their careers, and we regularly get feedback saying how interesting the exercise has been, how they had to stop and think about what they’re doing. Often you only do that if you’re between jobs. Generally there’s a fair amount of dialogue with the person that nominated them, about what they’ve

CONGRATULATIONS! The three regional winners of the NZIM/Eagle Technology Young Executive of the Year Award are: NORTHERN: Sharon McCook, Health Research Council CENTRAL: Claire Szabo, English Language Partners NZ SOUTHERN: Brendon McWilliam, Christchurch Engine Centre

From left to right: John Chang (NZIM Southern Board member), Southern Young Executive of the Year Brendon McWilliam, and Gary Langford (CEO, Eagle Technology).

Central Young Executive of the Year Clair Szabo (3rd from right), with Karin Callaghan, CEO NZIM Central, Central finalists Katrina Leather, Phil Jones and Stephen Porteners, and Phillip Meyer, chair of NZIM Central.

achieved and where they’re going and I think that’s quite an important point in this exercise. The candidates have had a few years in the real world and they’re deciding where they want to head next. The fact that someone has gone to the trouble to nominate them is really positive and certainly helps them cement ties within their organisation. “They can’t all be winners and some just need another year or so to ﬂesh out their experience. Over the years we have tended to suggest to people who we see have immense potential that they re-apply in one or two years. Dan Coward was one of those and our winner this year was another. You can’t make promises but sometimes you see people who are heading up the path but they’re just not quite there. I would love to see a few more young folk apply for this... it’s a very good career move in terms of taking stock at a critical time in your career.” “I like to think that they’re all winners at some level,” says Eagle Technology marketing communications manager Sarah

MacDonald. “Although there can only be one overall winner, we see the regional awards as every bit as important and the candidates Sharon McCook. are always outstanding. It’s wonderful to see them so enthusiastic and loving what they do, but it stands out too that the winners of these awards are always so well supported by their organisations... that always comes across.” Eagle Technology is now in its sixth year of sponsoring the Young Executive of the Year Awards and has committed to next year’s event as well. “We don’t take our sponsorships lightly. NZIM has really taken us on board as partners, they’re fantastic... I work closely with the regional people and they’re always so welcoming. We’re also delighted with the way Mediaweb has approached the awards.”

The New Generation

OF MEETINGS Corporate Storytelling with Wade Jackson

hose in a leadership role walk a tightrope, balancing their time between inspiring their team, getting buy-in for ideas, implementing strategy, managing tasks, building relationships, coaching others and a whole Wade Jackson myriad of other demands. If you focus your attention solely on one area for too long, you’ll soon find yourself falling off the wire. The one element that all these demands have in common is communication. In business, being an effective communicator isn’t a ‘nice-to-have’ – it’s a ‘must-have’! Master the art of storytelling and you will become a more effective communicator and enjoy success in meeting these work demands. Being a more effective communicator means you and those around you will become more productive and achieve results. People who achieve results never want. You will have more control of your destiny and in a time where rapid, constant change is the norm, that control equals a beautiful peace of mind. Stories are like oxygen – they are all around us and provide us with a life-force every moment of our lives, yet we rarely notice them or pay them much attention. Take them away and we die. We need stories, not just our own but others too. It is through the telling and sharing of stories that we make connections, which helps us to understand who we are and to make sense of the world around us. “‘Thou shalt not’ might reach the head, but it takes ‘Once upon a time’ to reach the heart,” says Philip Pullman. There are many benefits and applications of using ‘storytelling’ as a tool, but the underpinning idea is that stories connect. They connect people to people, and people to ideas. There are many different types of people and types of relationships, just as there are many different types of ideas. Storytelling connects us all. Here are eight key areas where storytelling can greatly benefit leaders. • Aligning purpose. • Setting a vision. • Building a culture. • Implementing strategy. • Inspiring and influencing. • Creating and maintaining relationships. • Sharing knowledge to coach and upskill. • Simplifying communication. If you would like to learn more about this programme and how to become a Master Storyteller, NZIM Northern has an intake scheduled for October 4-5. Contact NZIM Northern today to secure your booking on 0800 800 694, or visit www.nzimnorthern.co.nz.

“M

eetings, bloody meetings.” It’s a sentiment shared by many in today’s business world, when finding enough time in the day for meetings sandwiched in between increasing workloads and demanding schedules is a challenge in itself. Yet sometimes it hardly feels worth the effort, when members of the meeting are otherwise occupied, thinking of other matters, or plain not interested. While an agenda helps order the meeting somewhat, there’s still the chance that the main objectives won’t be covered. It was with these issues in mind that NZIM Northern Learning and Development manager Suzanna Rangi-Hohepa put together “The New Generation of Meetings”. Inspired by the four buttons making up the gaming keypad on a Playstation controller, meetings are scheduled under four headings: Square Meetings, Roundtable Meetings, Triangle Meetings, and Four Corners Meetings. Under these headings specific topics and objectives are discussed, ensuring that time is well spent with desired outcomes reached. SQUARE meetings are ’results and process’ oriented and are scheduled weekly. Therefore, these meetings are strictly for reviewing sales figures, results (both past and present), and processes. Other topics may come up and are noted to be discussed during the appropriate meeting. Key elements for square meetings are that they are always structured and outcome based, and should be set at the same time on a weekly basis. ROUNDTABLE meetings are around being creative, innovative, having new ideas, and anything within the business based on the future. As a result, new marketing or promotion ideas are usually discussed, as well as ways to increase business and help your organisation stand out from the rest. These meetings are scheduled fortnightly with key elements being: it has to

be fun, not all ideas are discussed, follow-up on implementation is critical and is based on outcomes. TRIANGLE meetings are more around product training, coaching and sharing – more or less learning sessions. These are scheduled as and when needed, however, it is good practice to hold one, once or twice a month, to be certain your team is up to date with best practices. FOUR CORNERS meetings are planned monthly and are themed for each quarter. Based on the four points of a compass, outcomes are based on: • N Now: what can we implement straight after this meeting? • E Ensure: what will we ensure we will do? • S Sales Focus: how will we increase sales? • W What, Who, When: action plan moving forward. Ideally a different chairperson should head each meeting and be changed quarterly. The chairperson has full responsibility for each meeting – and creative licence. The NZIM Northern team implemented this meeting structure in March and since then has experienced an increase in outcomes achieved, ideas generated and discussed, and seen a more effective meeting structure overall. To hear just how much this has had an impact, contact the Learning and Development Team today on 0800 800 694.

NZIM Diploma in Management (Advanced) – Level 6

n today’s fast-paced business world, you will find many people who have worked their way up from the frontlines of business, and have found themselves in a management role. While many no doubt have a wealth of experience and knowledge, many are still lacking any formal recognition or qualifications. With the ever increasing level of leadership and technical expertise needed to successfully manage business units or organisations, leaders and managers need to be adept at finding business solutions. Not only that, they need to be creative and innovative in their approach, as well as meeting time and budget constraints, all while influencing others within and outside their organisation. More often than not, there are gaps that need to be filled on an operational and strategic level. While experience may help somewhat, many aren’t properly prepared to take on these responsibilities. This is where NZIM Northern can help. The NZIM Diploma in Management (Advanced) – Level 6, an NZQA-approved qualification, is for managers who have been in their role

for more than five years and are looking for a formal management qualification. They could be managers who are looking to prepare themselves better for senior positions, or middle managers who need to fill gaps in their knowledge that their experience can’t bridge. This programme provides an entry point into advanced qualifications for middle or senior managers wishing to provide conceptual rigour for their experiences, without the commitment of full-time study or night and weekend classes. To optimise the learning experience, the Diploma is spread over nine months, with face-to-face modules approximately every four to six weeks. Participants are required to complete assessments for each module, a major project and final project report, along with a learning journal and formal presentation at the end. The next intake for the NZIM Diploma in Management (Advanced) is scheduled to start on August 10. To secure your booking or talk to a consultant, call the NZIM Northern Learning & Development team today on 0800 800 694, or visit www.nzimnorthern.co.nz.

Central Courses CHANGE MANAGEMENT How do you know what is best practice? Do you know what type of change will be required in your organisation and how you need to manage it? These are the key questions you need to ask before the process begins. The challenge today when contemplating change is to minimise the risks when you start the planning and implementation of change. Understanding Change Management requires many disciplines – good communication strategies, negotiation, consultation to name a few. The ability to diagnose and examine the need for strategic change and then manage the process in the interests of all the stakeholders is crucial. How to identify the best processes that will bring your people with you on the journey through a successful change process and understand the natural resistance of some staff can be effectively handled with the right tools. Completing this programme with NZIM will give you the tools to understand the process of change and how to manage your journey. Date: October 26-27 Cost – Members: $1400 Non-members: $1600 PROCUREMENT MANAGEMENT Effective management of contractors and consultants is a practical reality for managers. Understanding how to assess, select, manage and monitor outside knowledge and skills is fundamental. The aim of this programme is to provide you with the skills and techniques to effectively manage contractors and consultants in the public and/or private sector. This programme is speciﬁcally designed for managers of contractors and/or consultants. It is also designed for people involved in the management of contract milestones. This two-day programme offers a highly stimulating learning experience based on small group exercises to emphasise the skills required at each stage of the contract management process. Date: November 17-18 Cost – Members: $1100 Non-members: $1450

NZIM/WRCC Women’s Breakfast Series

Richard Millar.

INTRODUCING RICHARD MILLAR Richard Millar facilitates both the Change Management and the Procurement Management programmes. An experienced trainer and consultant whose areas of expertise include leadership development, frontline management development, team development, executive and personal development coaching, strategic/ business planning and accounting for nonaccountants, Richard has worked in a wide variety of organisations, small and large, in New Zealand, Australia and Papua New Guinea. His depth of business knowledge and skills in sales, marketing, finance and general management, coupled with a very practical approach to training and facilitation has provided excellent value to a large number of organisations. Richard’s background includes chief executive officer of Cogent Communications in New Zealand where he was responsible for restructuring the company, transforming it into a profitable high growth telecommunications business. He was previously vice president, Asia Pacific, for Motorola Cellular, based in Singapore in 1995-97, after having been managing director of Motorola New Zealand. He has also held a number of other senior management positions including general manager of Epson New Zealand and area financial officer, South Pacific, for Wang Labs Inc, based in Australia.

COMING UP:

DATES FOR YOUR DIARY Wednesday 25 Cullen Law Series - lunchtime seminar. Presented by Charles McGuiness, senior solicitor with Cullen. Topic is Conﬁdential Information, Restraints of Trade and Employee Obligations. Tuesday 7 September NZIM/WRCC Women’s Breakfast Series. Wednesday 6 October Cullen Law Series – lunchtime seminars. Presented by Charles McGuiness, senior solicitor with Cullen. For more information or to register for any of these events please visit www.nzimcentral.co.nz or contact Susan Mckibbin susan_mckibbin@nzimcentral.co.nz, or phone 04 495 8296

NZIM Central CEO Karin Callaghan and Claire Szabo.

[l to r]: Hilary Beaton, CEO of Downstage Theatre, Karin Callaghan, CEO NZIM Central and Helen Moody chair of Downstage Theatre.

he third in the women’s breakfast series was hosted by NZIM with guest speaker Hilary Beaton, CEO of Downstage Theatre. NZIM also took the opportunity to present Claire Szabo, CEO of English Language Partners New Zealand with her new AFNZIM certificate. Claire says her decision to apply for professional advancement with NZIM was a great opportunity to reflect back over her past decade of work and test her management skills on a broader stage. “Having my portfolio blind reviewed by a panel sharpened my focus to the task! The successful result – Associate Fellow status – was most encouraging. Being a frequenter of the breakfast series meetings, a real bonus was having the framed certificate presented there and receiving the support of colleagues and friends. I would recommend both professional advancement and the breakfast series events to any manager looking for collegial support and inspiration.” For more information on professional advancement with NZIM please contact Susan Mckibbin susan_mckibbin@nzimcentral.co.nz, or phone 04 495 8296.

WOMEN IN LEADERSHIP

KNOWLEDGE CAFE Strategic Development programme

he ﬁve-day residential Strategic Development Programme helps organisations develop future senior managers by placing them in a practical learning situation that builds the skills and techniques needed for effective performance at the highest levels of strategic management. Programme content and style is designed for senior managers responsible for the strategic leadership of the company, for managers who contribute to the strategic planning and development process and managers who want to compare their position and thinking with others in similar positions. The course is made up of four programmes covering strategic, marketing and ﬁnancial management, and strategic leadership. The programme is integrated with a Strategic Planning case study that requires syndicates to develop a series of long-range plans. Daily tactical decisions are made and these plans and decisions will be analysed to produce operating results taking account of suppliers, competitors and market forces. The next course starts 6 September – for more information phone 03 379 2302, visit www.nzimsouthern.co.nz or email info@nzimsouthern.co.nz.

YOUNG EXECUTIVE OF THE YEAR – Southern Final

he NZIM Southern final for the 2010 Young Executive of the Year Award was held at the Russley Golf Club in Christchurch on Wednesday 30 June. Although there were only three finalists this year, the standard was as high as ever providing the judges a very difficult task to find just one winner. Last year’s winner Dan Coward, who was present at the function to hand over his title, won the award on his second attempt and that scenario repeated itself this year when Brendon McWilliam from the Christchurch Engine Centre became the worthy winner after first entering the competition in 2009. This certainly proves the old adage “if at first you don’t succeed, try, try again”. The NZIM Southern team congratulates Brendon and wishes him every success in taking out the national title at the Deloitte/ Management magazine Top 200 Awards in Auckland in December.

L TO R: Brendon McWilliam (Christchurch Engine Centre), Nalini Meyer (Harmans Lawyers) and Brett Christie (Beca Ltd).

eature speaker at last month’s Women in Leadership Knowledge Café function was Erica Crawford, managing principal at Tentpole Holdings. She started her career as a young scientist in cardiac medicine in her native South Africa, but it was her self-taught skills as an exporter and marketer that saw her rise to business prominence in New Zealand. Erica co-founded Kim Crawford Wines in 1996. In a unique deal, the brand and IP was sold after some seven years. Erica remained in the business until April 2009, when she retired from Constellation Wines as vice president, global sales and marketing. She is a member of the NZTE Beachheads Advisory Board and an advisor to the ASA Liquor Promotions Control Board. She is on the judging panel of the Ernst & Young Entrepreneur of the Year Awards and a member of the Investment Committee of the University of Auckland Business School Entrepreneurs Challenge. Erica is President of the Canada NZ Business Association

Erica Crawford.

and a founding member of Global Women. The next Women in Leadership Knowledge Café will be held on 17 August from 5.15pm to 7.00pm. For more information or to book phone 03 379 2302, visit www.nzimsouthern.co.nz or email: info@nzimsouthern.co.nz.

COMING EVENTS Tuesday 17 August 5.15pm to 7.00pm Women in Leadership Knowledge Café function at The George Hotel. Members $30 incl GST; non-Members and e-Members $35 incl GST. Thursday 16 September 7.30am to 10.00am NZIM EIANZ Breakfast Forum at The Canterbury Club. Guest speakers are Kerry Grifﬁths from URS Corp and Roger Sutton from Orion Networks. Tuesday 21 September 5.15pm to 7.00pm Women in Leadership Knowledge Café function at The George Hotel. Members $30 incl GST; non-Members and e-Members $35 incl GST. Friday 5 November NZIM 25th Annual Charity Golf Tournament at the Russley Golf Club To book for any of these events or ﬁnd out more phone 03 379 2302, visit www.nzimsouthern.co.nz or email: info@nzimsouthern.co.nz.

JOINT SUSTAINABILITY BREAKFAST FORUM 16 September

ZIM Southern and the Environment Institute of Australia and New Zealand are teaming up to present a Breakfast Forum on 16 September at the Canterbury Club in Christchurch. The key speakers will be Kerry Griffiths and Roger Sutton. Chairman of the function is Tom Burkitt, the New Zealand chapter president and VP EIANZ. Kerry Griffiths is a principal sustainability consultant at URS New Zealand. She has 14 years’ practical experience in the field of sustainability integration, more recently with a focus on state highway and infrastructure projects. She has also led several sustainability and greenhouse gas inventory projects with NZTA from a strategic/policy perspective. Kerry has been involved with Kerry Griffiths. NGTR, NGA Newmarket, the

Waterview Connection and Transmission Gully projects, with a particular focus on the implementation of sustainability concepts within state highway project design and construction. Roger Sutton has been chief executive officer of Roger Sutton. Orion New Zealand Limited for six years, and is chairman of EECA (the Energy Efficiency & Conservation Authority). Through his role with EECA he aims to help bring energy efficiency to every New Zealander. He has previously been a director of Energy Developments Limited, an ASX-listed renewable energy developer; a director of Energetics, Australia’s largest specialist energy efficiency consultancy; and a trustee of Community Energy Action, a Christchurch-based trust that supports energyefficiency initiatives for low income households.

CENTRAL

SOUTHERN

All courses shown are in Auckland. For more information phone 0800 800 694 or visit www.nzimnorthern.co.nz

All courses shown are in Wellington unless otherwise indicated. For more information phone 0800 373 700 or visit www.nzimcentral.co.nz

For more information phone 03 379 2302 (Christchurch & Queenstown), 03 477 9277 (Dunedin) or 03 218 7451 (Invercargill) or visit www.managementsouth.co.nz.

AUG

NORTHERN

4-6 Team Leader – Essential Skills 5 Effective Business Writing 5-6 Developing Inﬂuencing & Motivation

10 11 12-13 16-18 17-18 19-20 19-20 19-20 24-25 30-31

Skills Managerial Excellence MEX Communications Project Risk Management Introduction to Management Operational Management Leading Your Organisational Culture Key Account Management Facilitation Skills Interpersonal Communication Skills Building a Business Case

SEPT

1-3 Team Leader – Building Effective

2 6-8 7-8 9 9-10 10 14-15 14-15 15-17 16 16-17 16-17 20 22 22-23 23-24 24 27-29 28-29 30-1

Teams Emotional Intelligence CEO Development Programme MEX Applied & Project Management Writing an Effective Business Plan Leadership Basic Budgeting Business Process Management Human Resource Management PMP Preparation Implementing Effective Performance Reviews Effective Recruitment Needs Analysis & Programme Design Effective Use of Time Diploma in Project Management (starts) Performance Management Interpersonal Communication Skills Microsoft Projects Project Management Conﬂict Management Developing a High Performance Team

OCT

2-9 Management Development

4-5 5-6 5-7 7-8 7-8 8 11 11-13 11-13 12 12-13 13 13-15 14-15 14-15 18 18

Programme Corporate Story Telling Strategic Management Team Leader – Essential Skills Assertiveness Skills Women in Management Lean 6 Sigma – Yellow Belt Speed & Power Reading Professional Administrator Skills Accounting for Non-Accountants MEX Communications Coaching and Mentoring Stress Management Strategies Four Quadrant Leadership Report Writing Workplace Assessment Effective Use of Time Diploma in Frontline Management (starts)

3-6 Train the Trainer 9 Effective Business Writing 17-18 Developing, Inﬂuencing & Motivational Skills

17-18 Developing Flexible Leadership inc DiSc

18 Emotional Intelligence 19-20 Conﬂict Management 23-24 Strategic Thinking Tools

SEPT

1 Process Mapping & Continuous Improvement

1-2 6-8 8-9 8-9 13 13-14

Dealing with Difﬁcult Behaviours

15-16 15-17 22-24 27-28 27-29

Conﬁdent Communicator

Accounting for Non-Accountants Think On Your Feet Managing Your Time Effective Recruitment & Selection Dip Mgt Advanced – Human Resource Management Professional Administrator Skills Project Management Introduction to Management Team Leader Skills/Operational Leadership (National Certiﬁcate in Business)

OCT

1 Implementing Effective Performance Reviews

1 4-5 6-7 7-8 7-8 11 11-12 11-13 13-15

Neurolinguistic Programming

18 19-20 26-27 28-29

Memory & Mind Mapping

Building a Business Case Negotiation Skills Coaching & Mentoring Skills Diploma in Frontline Management

CHRISTCHURCH AUG 2-3 4-5 4-6 6-9 9-11 11-13 12 16-17 17-19

SEPT 3 6-8 6-10 10 14-15

Effective Business Writing ABCs of Win-Win Relationships Strategic Development Programme Effective Use of Time Accounting for Non Accountants – Stage 1 15-17 Introduction to Management 20-22 Team Leader – Building Effective Teams 27-29 Team Leader – The Essential Skills

OCT

9-16 ESCO – The Discovery

OTAGO/SOUTHLAND AUG

4-6 Four Quadrant Leadership, Invercargill

9-10 Presentation Skills, Invercargill 11 Effective Business Writing, Queenstown

16-17 Practical Project Management, Dunedin

19-20 Practical Project Management,

Introduction to Management Leading Your Organisational Culture Diploma in Project Management Leadership, Motivation & Team Building

Invercargill

23 Speed Reading, Invercargill 24-26 Team Leader – Leading the Work Group, Invercargill

25 Effective Use of Time, Dunedin 26-27 Coaching for Performance Excellence, Dunedin

Diploma in Frontline Management Change Management Diploma in Management Advanced

Coaching for Performance Excellence Practical People Skills Four Quadrant Leadership Stage 2 Developing Effective Teams Four Quadrant Leadership Team Leader – The Essential Skills Introduction to Leadership – NEW Negotiation Skills Team Leader – Leading the Work Group

SEPT

6 People & Communication Skills, Invercargill

7 Dealing with Different People & Handling Conﬂict, Invercargill

8 Managing the Performance of your Staff, Invercargill – NEW

14 The Art of Minute Taking, Invercargill 15 Essential Skills for the Administrator, Invercargill – NEW

16 Conducting Effective Meetings, Invercargill – NEW

20 Effective Business Writing, Dunedin 20-21 Think on Your Feet, Invercargill

OCT

6 Governance in Practice, Invercargill 7-8 Negotiation Skills, Dunedin 11 Governance in Practice, Dunedin

LEADERS BUILDING LEADERS Our aim is to build management capability through, Research, Learning, and Recognition. OUR FOCUS IS TO: • Research leading management trends and practice and promote a constantly developing model of best management capability for New Zealand. • Enable managers and aspiring managers to participate in learning programmes, mentoring, and events that provide the information and experience they need to develop their capability. • Identify leading management role models and provide awards that recognise the career and educational achievements of managers. NATIONAL BOARD Phillip Meyer FNZIM (Chairman) Brian Soutar AFNZIM Lloyd Davies FNZIM Cheryl Doig FNZIM John Sandford FNZIM Gary Sturgess Life FNZIM Lynda Carroll AFNZIM OFFICES National Office Acting CEO Phillip Meyer PO Box 67, Wellington 6140 Ph 0-4-473 0470, Fax 0-4-473 0479 Email national_office@nzim.co.nz National website www.nzim.co.nz Northern President John Sandford FNZIM CEO Kevin Gaunt FNZIM, FAIM PO Box 6600, Wellesley St, Auckland 1141 Ph 0-9-303 9100, Fax 0-9-303 9109 Email kevin_gaunt@nzimnorthern.co.nz Website www.nzimnorthern.co.nz Central President Phillip Meyer FNZIM CEO Karin Callaghan FNZIM FIPAA PO Box 11781, Wellington 6142 Ph 0-4-495 8300, Fax 0-4-495 8301 Email karin_callaghan@nzimcentral.co.nz Website www.nzimcentral.co.nz Southern President Brian Soutar AFNZIM Acting CEO Tom McBrearty AFNZIM PO Box 13044, Christchurch 8141 Ph 0-3-379 2302, Fax 0-3-366 7069 Email tom@nzimsouthern.co.nz Website www.nzimsouthern.co.nz

MEM BER CO M M EN T:

If you can measure it YOU CAN MEND IT PHIL KER, FNZIM CHIEF EXECUTIVE, OTAGO POLYTECHNIC

ix years ago, when Phil Ker became the chief executive of Otago Polytechnic, he set in place an annual work environment survey. Five surveys later, he modestly acknowledges that the results are nothing short of amazing. “We have focused our energy on improvement in the areas that showed up as needing attention. Everything has been tracking upward each year, so now we have only a couple of areas that are rated below our target.” With a career spanning roles as teacher of accounting and economics, union leader, and as corporate services director of Auckland University of Technology, Phil knew that ‘management metrics’ would help the management team and staff to focus on the areas that needed improvement. The survey is designed to align with John Robertson’s ‘Best places to work’ awards. It uses the Likert Scale – a series of statements about which the respondent rates their level of agreement. Everyone in the organisation answers 80 questions around all dimensions of work life. Topics include personal wellbeing; issues around the values, skills, resources and expectations of each person’s job; workloads; culture; decisionmaking processes and conﬁdence in leadership. Each year, managers and staff have worked in a disciplined way to deal with the issues that rated lower than desirable. For example, the organisation’s decision-making processes gained

only a 57% rating ﬁve years ago. The ratings for this item are now tracking at 80%. This is due to a focus on building management and leadership capability and through a disciplined approach to communication and relationship development. Phil says he has long held the view that not anyone can manage, but that management is a profession that entails a set of attributes that can be learned and should be mastered. “Our whole Otago Polytechnic culture is built around capability,” he says. “Success is not about knowing ‘stuff’, but about being able to perform. You have to know ‘stuff’, but you have to have the right attitudes and the soft skills like relationship building, teamwork, ability to work with

Phil Ker.

diversity, and communication. Our robust self-review process is building a culture where we each take responsibility for knowing if we are doing a good job, and understanding what we are doing well and not well. When we know how we measure up, we can mend and develop our behaviours and processes.”

DIRECT MARKETING

New ways to engage Those who love direct marketing do so because it’s targeted, measurable and personal. As technology advances, there are more opportunities than ever before for Kiwi businesses to indulge in their love of DM, says Fiona Woolley of NZ Post.

here are many aspects that make up a good direct marketing campaign, starting with great planning, and using data and analytics to ensure you’re reaching the right people with the right message. You need attention-grabbing creative, because direct marketing is the only medium that lets you get to all senses and fully interact with your audience. And, more than ever, you have to consider a multi-channel environment – addressed mail, email, mobile, web, and the potential of digital technologies such as quick response (QR) and augmented reality (AR). CREATIVE TRENDS

DATA AND INSIGHTS

Data and insights are less sexy but it’s one of the big trends we’ve been noticing – the care, attention and amount of effort that organisations are putting into their data and analytics. It’s fabulous to see this positioned high on direct marketers’ agendas because it’s extremely customer-focused, ensuring you’re communicating with the right customers via the right channels with the right messages, and it’s also an efficient use of marketing budget. New Zealand Post has been getting so many inquiries for in-depth analytics to provide what the industry calls “rich customer insights”, that it’s developed an entire new data segmentation model, Genius™, to meet demand.

There are some great things happening in both the online and offline worlds of direct marketing. Today’s print production capabilities MEASURING are pretty spectacular and free the way Measuring has always been an imporfor imaginations to run wild. Add a lit- tant part of DM and we’re noticing a tle fun to things with interactivity in the trend here to more robust monitorform of specially coated messages that ing, measurement and analysis of require body heat or the application of results often being incorporated into liquid to reveal messages. Quick response planning for additional DM. It’s now and augmented reality technologies also being treated more as a long-term open up a world of possibility and I think communication plan rather than a series of one-off, unrelated we’ll see more of these campaigns. capabilities incorporated into direct marketing in the MULTI-CHANNEL near future. For example, Addressed direct mail is the US Postal Service uses a traditional and still exaugmented reality to help tremely effective way to customers find the rightreach customers, however sized packaging for the DM specialists are finditems they want to send by ing innovative ways to inviting them to use a webtake direct mail in new cam to experience a virtual Fiona Woolley. directions, particularly box simulator.

A quick response mail campaign.

integrating with the digital world. In New Zealand, we’re seeing the direct and digital environments coming together in various ways. We’ll be seeing more direct marketing campaigns including print integrated with other mediums such as outdoor advertising, that will direct customers to visit personalised URLs to receive targeted information, meant specifically for them. Yes, it’s an overused word but it really is about ‘integration’. SUSTAINABILITY

With environmental friendliness high on many of our personal and work agendas, DM-ers are definitely thinking about their responsibilities in sustainability. For direct mail in particular, there has been an increase in the use of sustainable materials (paper and inks) and biodegradable material. A great example was a biodegradable pen which the customer used to sign a form and could then plant in soil and watch it grow into a plant. M Fiona Woolley is manager – market engagement for New Zealand Post Targeted Communications.

AUGUST 2010 Management www.management.co.nz 61

HEALTHY LIFESTYLES

Under the knife A stitch in time saves lives. It’s a fact of business that staff are going to have to undergo surgery. What does that mean for your workplace?

ast year, hundreds of thousands of New Zealanders underwent surgery. Was one of your employees or colleagues among them? If not, then statistically there’s every possibility that this year may be the one. Increasingly, surgery is becoming a fact of life in New Zealand. Elective, or non-urgent surgery in particular, has seen a significant rise over the past two years. Last year, 134,763 patients received elective surgery in the public system – up 12,000 on the previous year. New Zealanders’ use of the private health sector for their surgical needs is also on the up. The New Zealand Private Surgical Hospitals Association reports that its members provided procedures for approximately 164,000 patients last year. And the country’s largest insurer Southern Cross has seen significant increases in demand for some of the most common surgical procedures. For example, in the period to December 2009 there was an incredible 78 percent increase in the number of members claiming for shoulder surgery and a 19 percent increase for knee surgery. A contributing factor to the increase in elective surgery is our ageing population, a factor which is also having a major impact on the make-up of New Zealand’s workforce. Latest figures from Statistics New Zealand show that half the labour force will be older than 42 years in 2011 – up from 36 years in 1991. The proportion of the workforce aged 65 and over is expected to peak at 23 percent in 2028, up from 12 percent in 2006. Inevitably as the workforce ages, attitudes are changing. People want to keep healthy, active and productive well beyond the traditional retirement age – and so they should.

Advances in medical procedures are also increasing surgical interventions. Procedures such as keyhole and laser surgery are less invasive, enabling shorter hospital stays and faster recovery times. So what does this all add up to for the workplace? Quite simply, surgery is a topic likely to become a “when” rather than a “what if” in your office. Depending on the seriousness of the procedure, this means employers and managers will need to think about planning for an employee’s absence and how to manage their return to work. Elective surgery is now a misnomer – many of these surgeries are vital to the long-term health or quality of life of the patient. This is where private health insur-

ments can all be scheduled to minimise disruption and downtime at work and in life. So what can you as a manager do to limit the impact of surgery on the workplace? As with every aspect of good business practice, clear communication and planning is key. BEFORE THE SURGERY

Before the staff member goes in for surgery, find out: • The employee’s expected absence from work. • What their expected recovery time is and whether they will be limited in any respect upon their return. Be aware there is

“EMPLOYERS AND MANAGERS WILL NEED TO THINK ABOUT PLANNING FOR AN EMPLOYEE’S ABSENCE AND HOW TO MANAGE THEIR RETURN TO WORK. ance can be a major benefit to employees. Many employers already recognise this and subsidise health insurance for their employees – this is the case with several hundred thousand policy holders in New Zealand. Lengthy and uncertain waits for surgery can impact on an employee’s health, well-being and productivity in the workplace. Often it is not even the employee that is going under the knife – there is likely to be a detrimental effect on an employee if their partner or child is awaiting surgery too. Private health insurance allows a patient to gain rapid access to the services they need. Specialist visits, the actual surgery itself and follow-up appoint-

62 www.management.co.nz Management AUGUST 2010

no set standard – recovery times for more complex surgery especially can vary widely according to the procedure, severity of the condition, health/age of the patient and whether any complications arise. • Be mindful of privacy – The employee has a right to privacy around their health issues and may not wish to share certain information. Your questions should be related to the employee’s duties and leave requirements. AFTER THE SURGERY

• When the operation is over, keep informed on how the employee is progressing. • Part-time work, flexible hours or

A factor in the increase in elective surgery is the ageing working population.

changes in duties may be required during the employee’s recovery. • Some surgeons may supply a letter to the employer outlining expected recovery and duties the employee can do. KEEPING PRODUCTIVITY HIGH

An area that many in the health industry have been focused on for some time now is trying to get an exemption from

Fringe Benefit Tax for employers who subsidise their employees’ health insurance premiums. There is currently an anomaly in that there is no FBT on accident insurance (ACC) but it is applied to health insurance. Providing an exemption from FBT to health insurance premiums would deliver some welcome relief for those employers who invest in health

insurance subsidies for their staff. It is believed the Government would also see strong payback through increased uptake in the private sector freeing up space in the public system. Some lowcost health and wellness programmes are already exempt from FBT. M Peter Tynan is chief executive Health Insurance, Southern Cross Medical Care Society.

The best way to keep staff happy since wages. The activa card is a simple, fun way to attract, retain, and inspire your staff. You set the annual amount, then your staff use their activa card to enhance their health and wellbeing. It’s what you’d call a healthy incentive. To ﬁnd out more about the beneﬁts of activa for your staff talk to Southern Cross on 0800 323 555 now or visit www.healthybusiness.co.nz. activa is brought to you by Activa Health Limited. The activa Account and related banking services are provided by ASB Bank Limited. Activa Health Limited receives services fees from ASB Bank Limited and Southern Cross Medical Care Society. Neither Activa Health Limited nor the Southern Cross Medical Care Society is a registered bank. A copy of ASB’s disclosure statement is available free of charge at www.asb.co.nz.

AUGUST 2010 Management www.management.co.nz 63

ADVICE TEN TOP TIPS

Ten things to learn about Facebook by Linda Coles

ace it, Facebook is a strategy you shouldn’t ignore. Facebook is now the number-one website in the US, even ranking above Google, with around 500 million active users using the site each month, and around half those users visiting daily. The average user has around 130 friends, and spends around 40 minutes on the site when they visit, which not only is a huge amount of time, but other websites don’t come close to that. That means that Facebook is fast becoming the numberone choice for a lot of people to stay in touch with friends, and also to surf for information within their community. You can’t afford not to be using it.

THE NUMBERS In New Zealand there are about 1.7 million active users around the country, which given the size of the country, is almost half of the nation, and even when you take the younger generation out (13 to 17 years age group) that still leaves around 1.5 million active users.

KEEP YOUR PRIVACY SETTINGS OPEN Facebook works by you simply sharing information with your friends, and depending on how you have set your privacy settings up, your friends’ friends can also see certain information. For instance, if I click the “Like” button on a particular business page, say Urban Gourmet, a note will be posted on my personal profile wall that I “like” that page. That is visible to all my friends who visit my personal profile and they too can click through to that business page and “Like” it. This is one of the reasons why Facebook likes you to keep your privacy settings open, to keep things as easy as possible to filter through to others and really take advantage of the viral nature of the site.

IT IS VITAL TO HAVE A BUSINESS PAGE Here are three good reasons why you should consider a business Facebook page: It’s free. It’s interactive. It’s a growing community.

DECIDE YOUR APPROACH There won’t be many industries that wouldn’t be able to make use of a Facebook page, and so for most businesses, it is a case of deciding on the reason to do it, and supplying information to satisfy that need. If you are a corporate catering and event planning company, the reason to do it is brand exposure, to gain customer feedback and engagement, and to share culinary information. More “Likes” equals more exposure.

BEWARE OF NOT UPDATING Beware of simply starting a business page and leaving it without regular, informative and relevant content, because that simply screams of sloppiness and could be damaging to your brand, a bit like dirty windows and litter around your front entrance.

64 www.management.co.nz Management AUGUST 2010

USE IMAGES To get your page looking good in the early days create an image for your wall page rather than just adding your logo. It is a good idea to include in that image a picture of the person who will be administering the page – as this gives the visitor an idea of who it is they are talking to, your logo, and how the visitor can contact you easily.

USE THE NOTES TAB Copy some relevant information from your website into the Notes tab. This acts almost as a blog post and will filter through to your main wall page whenever you add something in. There is plenty of space for larger articles, but you will need to double-check the formatting to make sure it looks nice. You can even add photos to the page.

VIDEO BRINGS IT TO LIFE Add any good video clips you may have of your company’s products or service as these are easily uploaded and stay on your video page. Alternatively, you can link directly to the video on YouTube if it is a long one.

THE ‘LIKE’ FACTOR Get the office team and close friends to “Like” your page quickly, as you want to get to 25 fans as soon as possible. When you hit 25, go to www.facebook.com/username and claim your unique page name or URL. Choose wisely, as this can’t be changed, so watch out for spelling mistakes. This unique page name or URL allows you to have an easy-to-remember and shorter page URL than before so the format will be www.facebook.com/yourcompany. USE THE LINKS Link your page to Twitter if you have a Twitter account, so that whenever you post something on Facebook, it updates your Twitter account, simultaneously eliminating one job and spreading a consistent message. M Linda Coles of Blue Banana is a speaker and trainer on building and maintaining relationships online.

WHICH ARE NEW ZEALAND’S

MOST REPUTABLE ORGANISATIONS? NZ Management magazine’s September issue will reveal some surprising answers. This groundbreaking research has been conducted by NZ Management in conjunction with leading global management consultancy Hay Group – which helps Fortune magazine compile the iconic Fortune World’s Most Admired Companies list. The New Zealand ﬁndings reveal the name of our single most reputable organisation and the identities of our Most Reputable Companies, State Owned Enterprises, Government Departments and Not For Proﬁt organisations – as judged by the leaders of other organisations. Subscribe to NZ Management magazine before 31 August and you will get the September issue as a bonus, along with a year’s subscription to NZ Management starting in October at the special price of $57.34. This is a total saving of over $26 or 30% – and it also beats the GST price rise!

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