Business Resource & Lifestyle Magazine - September 2014 - Issue #69

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BUS I N E S S

SYDNEY - ISSUE 69 | SEPTEMBER 2014

M A G A Z I N E

Political Corruption in the Premier State

China-Australia Investment Conference

Page 16

Page 18

S I N C E

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The Challenge and Opportunity of Work Experience Page 22

B E L L A V I S TA B U S I N E S S A L L I A N C E – E X C L U S I V E G R O U P F O R B U S I N E S S O W N E R S Business Resource & Lifestyle | Issue 69 | September 2014

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Business Resource & Lifestyle | Issue 69 | September 2014

Business Resource & Lifestyle | Issue 69 | September 2014

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Editor and Publisher: Dmitry Greku Cover Story: Catherine Cashmore Contributing Writers: Charlie Lynn Angry Anderson Daniel Moisyeyev John Watters Mike Conway Debbie Robertson Art Director: Svetlana Greku Executive Officer: Daniel Moisyeyev Director of Public Relations: Angry Anderson Cover Design and Cover Story Layout Xabier Goñi, XDesigns Printing: Pegasus Print Group Business Resource & Lifestyle Magazine® is published by GWP Media® and GWP Magazines® ABN: 82 096 352 064 www.gwpmagazine.com.au Office Address: Unit 31, 7 Hoyle Avenue, Castle Hill, NSW 2154 International Standard Serial Number ISSN 1837-199X Advertising Enquiries p | 1300 889 132 e | info@gwpmagazine.com.au To Subscribe w | www.gwpmagazine.com.au

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The opinions expressed in this journal do not necessarily reflect and are not to be regarded as the official opinion of the editor, publisher or their agents.

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Business Resource & Lifestyle | Issue 69 | September 2014

CONTENTS

CONTENTS 20 I DEFINE MY DESTINY I work when I work. And with TAFE WSI’s mix+match, I can fit my course around my life. I choose which classes to attend near my house, and do the others online in my own time. My mind, my future.

18 Cover Story

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Capitalism, Democracy and Land

EDUCATE ON YOUR TERMS CHOOSE HOW, WHEN AND WHERE YOU STUDY

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mix + match TAFE

study now pay later

Regulars

Regulars

LEADERSHIP

BUSINESS ADVICE

16 Political Corruption in the

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Premier State

Time Ran Out for the Socialmediapreneur...

Charlie Lynn

Regulars

24 The Class of ’92: Great

Catherine Cashmore

EDITOR’S LETTER

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A New Magazine in the GWP Magazines Family Dmitry Greku

BUSINESS NEWS

14 A Message from the Prime

Minister - Building a Stronger Economy

Tony Abbott

Energy Companies Confirm

Carbon Tax Savings for Customers

The Hon. Greg Hunt MP

Teamwork Applied Mike Conway

Daniel Moisyeyev

SOCIETY & LIFE

32 Wake up! Stand up!

Step up! Speak up!

Angry Anderson

WORKFORCE

20 Practical Learning Keeps the

Fire Burning for Young People

Debbie Robertson

22 The Challenge and

Opportunity of Work Experience

John Watters

Features

18 There is No Reason

You Should Not Be Successful

Interview with Richard Yuan

30 Supporting Local Suppliers

through Bartercard

Business Resource & Lifestyle | Issue 69 | September 2014

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EDITOR’S LETTER

A New Magazine in the GWP Magazines Family Dmitry Greku, M. Sc. - Editor and Publisher - GWP Magazines®

tNEXT Magazine will be launched in September. This joint venture of TAFE WSI and GWP Media was almost two years in the making.

The purpose of tNEXT is to fill the communication void, permitting business people to engage with young professionals, having TAFE connect with their students and imminent school leavers and most importantly, providing a conduit designed to fit young people embarking on a career with the requisite knowledge to make informed choices as to what skills are in demand and where those skills can be obtained and honed.

There are 160,000 students in TAFE WSI alone.

Right now, 300,000 high school students are asking questions about their options for tertiary education and future career paths. They will be in the workforce in three to five years, paying taxes, and over their working lives, running companies and making decisions of great significance to this country. Other than “celebrity lifestyle” magazines, there is nothing of compelling, readable value to keep them informed.

In tNEXT magazine, young future professionals and the people around them will insightfully navigate Sydney’s business and industry world and help them understand and evaluate critical steps they must take to build rewarding careers commensurate with their capacities and interests.

With ten issues a year, the information will keep coming, constantly updating, expanding and stimulating their underlying interest in the working world they are about to enter.

Every issue will include a success story of one of many TAFE graduates. There are to be regular features on research projects being undertaken in and around Western Sydney. Pages will be allocated to ‘Planning to Start a Business’.

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Business Resource & Lifestyle | Issue 69 | September 2014

This feature will be of interest to thousands of young budding entrepreneurs completing their final years of study. TAFE WSI will be providing important information about courses and TAFE’s learning processes.

The magazine is also a wonderful opportunity for ambitious young students to participate in a real commercial project and put their finger on the pulse of local business and industry. tNEXT targets the need to participate in our regional development by focussing on our young adults and their future.

Potential sponsors and advertisers have a great opportunity to partner with tNEXT, helping to provide students with a confident platform from which they can launch themselves into a successful career. This is an exciting pathway providing a credible roadmap of to engage with these important people and excite them about the potential of our region as they plan for their future.

Influencing students’ ideas and their future spending patterns will be an inevitable result of good journalism, modern stimulating design and intelligent advertising. Not only will tNEXT reach the students, but also three thousand TAFE staff, who are vital reagents in their future.

The magazine will be available to 300,000 high school students and their families, regional apprenticeship organisations, seventeen hundred Western Sydney Institute Business Partners and business leaders in the region.

For students who intend to seek employment in their chosen field, there will be articles about opportunities and about students from earlier years who have found career success in Western Sydney and beyond. tNEXT will naturally highlight job offers and advertise positions vacant. It will contain articles and carry advertisements which are of interest to young professionals and to those who have recently upgraded their skills to seek work promotion and higher salaries.

The other great opportunity is for business leaders and Industry managers to reach the next generation of talent that will drive Western Sydney to its destiny for growth and prosperity. tNEXT offers a unique conduit to put ideas for products and services in front of this exciting group of young professionals and entrepreneurs.

And don’t forget about our serious concern on youth unemployment that we spend so much time talking about. Endless business breakfasts, lunches, other events, articles and reports will not do a bit to change the current situation if we sit on our hands. Let’s do something about it!

Please visit www.tnextmagazine.com.au for more information and contact us to be involved and make a difference.

Have a great day. Take care of yourselves and your clients. G

e | editor@gwpmagazine.com.au

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To find out more contact us on 1300 889 132 Business Resource & Lifestyle | Issue 69 | September 2014

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PROUDLY PRESENTED BY

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Business Resource & Lifestyle | Issue 69 | September September2014 2014

AUSTRALIAN AGENDA

By Catherine Cashmore

Public Speaker and Well is a Journalist, Market Analyst, e or hm as C e rin m.au he at C icy. www.catherinecashmore.co r on Housing and Economic Pol known Media Commentato Twitter: @ccashmore_buyer

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rotests that continue to erupt across the country against the Federal budget consist of two sectors.

Those who are disadvantaged through cuts to government expenditure - young people, job seekers, groups on low-incomes, the home-less - against political parties who want to exploit the situation to swing the popular vote in their favour.

It comes at a time when many young Australian’s are growing increasingly disillusioned with what politics, in a neo liberal capitalist culture is able to achieve.

The various groups opposing the current budget may not be aware of the full backdrop that sits behind the issues they dispute.

Separating the politics of envy, from the basic principles of equity is not an easy task, not only in the items we consider ‘wealth,’ but also in judging whether income is a true representation of skill and effort, or granted disproportionately at the expense of others.

Business BusinessResource Resource&&Lifestyle Lifestyle | | Issue Issue69 69 | | September 2014

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PROUDLY PRESENTED BY

Most however recognise a process that favours the rich - one where politicians subject themselves to the interests of lobbyists and promise what they need to gain a seat in power.

We’ve seen this most recently with the ICAC investigations. Tens of thousands of dollars pouring into the major party coffers from property developers all claiming to be ‘legitimate’ – yet, as we know, you don’t hand over cash without expecting special favours in return.

It would be nice to think that democracy alone could remedy this, but democracy unless underpinned by good policy, has a fatal flaw - that of short termism.

While we desire a country built on the pillars of community, equity, and economic justice, it’s simply not possible in country that is pinned to the foundation of rising land values, as a necessity to fund retirement and most other lifestyle and business needs.

The social consequence that arises from this costs us millions in welfare payments throughout the year. Yet it is still advertised and promoted as the road to riches, creating a “FIRE” economy (finance, insurance and real estate) - disproportionally inflating land costs without due acknowledgement

of the consequence.

Unfortunately, the web of confusion that surrounds the subject has put capitalist democracy, which has managed to free so many from the dominance of politically oppressive and controlling regimes, under attack.

Yet, capitalism, which in its truest form is simply a free market system of competing goods and services, is not what we have presently.

Today, faulty economic thinking has allowed items that are not made, or earned and by nature cannot

While voters will champion the environmental crisis of climate change and affordable accommodation, they will recoil at the thought of living near a windfarm or high-rise block.

Public housing and commission homes are fine in theory, but not in the local neighbourhood, or indeed, anywhere in view.

We’ll welcome the stranger and rally in defence of the asylum seeker, but only on the condition they don’t take away our jobs or price the locals out of housing. In other words, you can come in, but just don’t join in.

No one cheers at the thought of saddling our younger population with student debt – however, when it comes to the cost of shelter, a different attitude arises. Generation Whine are instead told to shut up and save up.

Sleepers on Sydney’s streets

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AUSTRALIAN AGENDA compete; to be traded and profited from as if they were created capital. This has corrupted what should be a very good and fair system.

It’s important therefore to understand what wealth and capital is exactly.

Wealth is not the paper and numbers in our bank account. Money is simply a measurement of the resources we need, to produce the goods and services we consume (capital) for both business and pleasure.

Try and think of an activity, or item, that does not include land, and you will come up short.

However, the flow of income that comes from owning land over and above the value of building on it, when capitalised into the price, leads to a monopolist culture that feeds speculation, attracting a cabal of banking and finance interests and concentrating the vast proportion of a country’s wealth in the hands of a few, above the very real needs of many.

Rupert Murdoch ironically coined it best when,

possible to maximise their ‘capital gains,’ without acknowledging what is given with one hand, is taken with the other – or more accurately, from another.

This is clearly highlighted in the response to the budget.

Whilst rich land-‘lords’ and mining magnets grow wealthy, collecting their unearned windfall in economic rent – they ironically tell the young tenant saddled with student debt “so you think the world owes you a living?” while government

In simplest terms - a person’s wealth is made through his/her own enterprise; whilst a country’s wealth consists of its land and natural resources.

When we earn money in exchange for our skills and labour it can’t be considered unjust or unfair.

However, when it comes though a government legislated process, of allowing some to profit at the expense of others, by trading items that are not capital or derived from any physical effort, this yields a special kind of unearned income, which in classical economics is termed “rent.”

Rent seeking can take on many forms – such as patents and government licences for example, which cripple competition from smaller industries and produce an unfair advantage.

The ‘Uber’ and ‘Lyft’ revolution is one such example.

It threatens to undermine the cartel of the Taxi industry’s ‘licencing’ monopoly, which gleans an economic rent from purposely-limiting the number granted.

‘Uber’ and ‘Lyft’ offer a cheap and reportedly safe ‘match-making’ alternative for consumers; however their progress has been repeatedly stifled by government intervention, determined to protect a monopoly and a culture of regulation evidently fearing a cut to revenue.

The most damaging of rent seeking behaviour however, and the one that yields the most gains, is trading the economic rent of land.

An increase in the market price of land is an expected result when economies are improving along with capital investment in infrastructure. Therefore, of all rent seeking behaviour, owning a plot of land in path of this progress yields not only the greatest windfall of passive gains, but is also used as a significant source of territorial and political power.

This is not surprising when you consider all the goods we consume come from it. Our oil, natural gas, timber, coal, and water reserves are the product of it.

We travel on it, work on it, party on it, sleep on it, and bury our dead in it.

Wi-fi, airplanes, all forms of technology need it. We evolved from it and progress on it.

in his 1994 John Bonython lecture “HYPERLINK “https://www.cis.org.au/events/event/53/RUPERTMURDOCH---The-Century-of-Networking-/0”The Century of Networking” he said; “Because capitalists are always trying to stab each other in the back, free markets do not lead to monopolies. Monopolies can only exist when governments protect them.”

stretches out its hand to the low waged worker commanding they “pull their weight.”

This is in essence what the Arab Spring was all about.

It is no coincidence that whilst far from a perfect system of equitable land reform, the greatest equaliser in Australia and the one that had the most profound social and economic effect on reducing inequality, was the Mabo Judgement over land rights for the Aboriginal people.

Many mistook it as a grasp for democracy – however it wasn’t. It was a grasp for true capitalism – the freedom to prosper unimpeded by onerous regulation or rent seeking behaviour.

At its essence was a desire for economic justice, equal access to opportunity – matters we look to Government to provide.

Since the author and driving force behind the early settlement of South Australia, Edward Gibbon Wakefield (1796-1862), devised his grand plan of “systematic colonisation” – making land just so ‘sufficiently’ unaffordable as to create a willing workforce of labourers. Economists and politicians have done everything possible to distract public attention from what is nothing more than a modern day game of feudalism.

They do this by allowing people to play a dangerous game of leverage, gambling on land price inflation by borrowing as much debt as

Ken Henry tax review “The current charging arrangements distort investment and production decisions….. they fail to collect a sufficient return for the community because they are unresponsive to changes in profits”

The monopolists in the mining industry stringently and shamefully lobbied against it, as they did most recently with at mention of a resource tax, turning it into a national crisis.

This is essentially why Clive Palmer entered politics.

Each year Ernst HYPERLINK “http://www. minesandmoney.com/london/report-er nstyoung-business-risks-facing-mining-andmetals-2013-2014/”&HYPERLINK “http://www. minesandmoney.com/london/report-er nstyoung-business-risks-facing-mining-andmetals-2013-2014/” Young produce a business report for the mining and metals industry, highlighting the top ten risks that can affect fat cat profits, along with tips on how to avoid them.

Business BusinessResource Resource&&Lifestyle Lifestyle | | Issue Issue69 69 | | September 2014

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PROUDLY PRESENTED BY

Top 10 risks 2013

01 Capital dilemmas - capital

allocationand access (new in 2009) 02 Margin protection and productivity

improvement (was cost inflation) 03 Resource nationalism 04 Social license to operate 05 Skills shortage 06 Price and currency volatility

(new in 2010) 07 Capital project execution

(new in 2011) 08 Sharing the benefits (new in 2012) 09 Infrastructure access 10 Threat of substitutes (new in 2013) Remained in the top 10 over six years

Featured prominently is “Resource nationalism” (sharing the gains) with the comment; “Miners have had to become more politically savvy” “the most successful are building strong relationships with Government” to...”educate on tax reform” It is against this backdrop, that he ‘loveable’ founder of “PUP,” which claims to “Unite All Australian’s” has bought himself a seat in power by promising ‘peace, prosperity and goodwill’ to all men, alongside a raft of economic ‘goodies.’

When Clive comes to town, Christmas does too, “’ower income tax, free education, higher pensions,’ you name it, Clive will promise it.

His policie HYPERLINK “http://palmerunited.com/ national-policy/”s are overwhelming ‘wishy-washy’ with no detailed assessment as to how they’ll

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be funded – but that doesn’t matter. Economic analysis is not the ‘PUP’ agenda.

Instead, it will act in the best interests of its leader ensuring the abolishment of any mining and carbon tax, whilst driving the cost of land higher with incentives for homebuyers.

However, the corruption of politics to favour the vested interests of leaders is nothing new.

It is no coincidence that just about every housing policy designed to increase affordability, results in

quite the reverse.

This can be witnessed in any country that allows the economic rent of land to capitalise into the price, thereby becoming a tradable asset to gamble on.

All tax incentives such as negative gearing for example, simply inflate costs rather than reduce them.

Zoning policies create false scarcity by protecting affluent neighbourhoods from ‘over development’, restricting the use of fringe land

AUSTRALIAN AGENDA

with urban boundaries and onerous regulation, and advantaging existing owners by pushing up the price of marginal land – which buttresses the price of all land.

The eHYPERLINK “http://www.neweconomics. org/blog/entry/working-paper-is-inequalitye x a c e r b a t i n g - o u r- h o u s i n g - c r i s i s ” v i d e n c e sHYPERLINK “http://www.neweconomics.org/blog/ entry/working-paper-is-inequality-exacerbatingour-housing-crisis” howHYPERLINK “http://www. neweconomics.org/blog/entry/working-paper-isinequality-exacerbating-our-housing-crisis”s, the richer vendors become, the more energetic they are to restrict development near their own land holdings – unless it acts to inflate values.

Many Melbournian’s will be familiar with the historical figure of Thomas Bent for example, who became the 22nd premier of Victoria.

His corrupt dealings are well documented, not least, using his political clout to extend the railway line from Caulfield to Cheltenham, thus enormously increasing the value of his own property developments, which just so happened to fall alongside the proposed route.

A more recent example is being alleged in New Zealand.

The country is undergoing a crisis of housing affordability and has been termed the world’s ‘most over priced.’

Policy makers are tying themselves in economic knots to uncover solutions, with the central bank employing strict lending regulations to prevent exuberant speculation, while ‘up-zoning’ to increase supply is underway.

However, these ‘up zonings’ miss Auckland mayor Len Brown’s spacious lifestyle block, which conveniently falls outside the Metropolitan Urban Limit (MUL).

which outline housing affordability problems, yet fail to identify the root cause and therefore effective solutions.

Economist Michael Hudson points out in USA studies, how the magnitude of land-price gains are brushed under the carpet to hide the massive unearned profits reaped by those who hoard it.

The same phenomenon is happening in Australia, not only with the ‘soft closure’ of the Australian Valuation Office and ‘rubbing out’ of First Home Buyer statistics from the RBA chart pack, but through budgetary cuts to ABS funding, which threaten to end the official “House Price Index” (considered the most reliable market indicator) in favour of private unaudited data providers, whose transparency and reliability are consistently questioned.

Mayor Len Brown who has recently purchased an American V8, whilst sporting the public face of being very ‘pro public transport,’ has uncharacteristically ‘infuriated’ his council’s transport leader, by rallying in defence of significant road projects which are reputed to have a beneficial and value enhancing effect on his own estate.

When you appreciate how lucrative rent-seeking is to those in power, it is very easy to see how democracy fails us – working tirelessly to silence voices by politically reinforcing faulty economic theories, while strenuously working against efforts to liberalise them. G

There are numerous academic studies world wide,

@ccashmore_buyer.

Business BusinessResource Resource&&Lifestyle Lifestyle | | Issue Issue69 69 | | September 2014

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BUSINESS NEWS

A Message from the Prime Minister - Building a Stronger Economy Tony Abbott, Prime Minister of Australia

Every day the Government is working to build a stronger economy so that we can help Australia’s families and small businesses.

We will cut company tax – making it easier for many small businesses and our record $50 billion infrastructure programme is underway.

This programme means that major works are happening in our cities and regional areas.

A stronger economy means more investment, more exports and more jobs. Everyone benefits.

And because jobs depend on major investments, we’re clearing the backlog of environmental approvals – with approvals already provided for $800 billion in new projects since the election.

Now, with the return of Parliament on Tuesday, the Government is continuing to put in place the policies that are part of our Economic Action Strategy.

These policies are already making it easier for businesses to compete and to employ more people.

In the last week of Parliament, we scrapped the carbon tax – and the benefits are already filtering through, we’re working with the Senate to scrap the mining tax – a tax that’s raised little yet costs much.

The Government is also opening the door to more trade and more jobs – with free trade agreements with partners like Japan and Korea – and we are working on an agreement with our largest trading partner of all, China.

We are continuing to repair the Budget – because I don’t want to see our children saddled with a debt that robs them of their futures.

invest in our future and to get spending under control.

Australia has now had 23 years of economic growth – it is a remarkable achievement that owes so much to the economically responsible decisions of the Hawke and Howard governments.

This Government is continuing that tradition of supporting sensible and reforming policies so that we can build a stronger and more prosperous economy for the benefit of every Australian. G Source: Licensed from the Commonwealth of Australia under a Creative Commons Attribution 3.0 Australia Licence. Commonwealth of Australia, A Message from the Prime Minister - Building a Stronger Economy <http://www.pm.gov.au/ media/2014-08-24/message-prime-ministerbuilding-stronger-economy> viewed 24 August 2014.

We owe it to them – to live within our means; to

Energy Companies Confirm Carbon Tax Savings for Customers The Hon. Greg Hunt MP, Minister for the Environment

The Federal Government welcomes the announcements by Australia’s major energy suppliers that consumers will receive reductions in their energy bills, as a result of the axing of the carbon tax.

These announcements follow AGL’s confirmation on Wednesday that their customers will also reap the benefits as a result of the carbon tax repeal.

In their Removal Substantiation Statement, Origin has confirmed that customers across Australia will benefit from the repeal of the carbon tax.

These savings will be backdated to 1 July 2014.

Customers in the ACT can expect to save up to 11.5% on their electricity bills, whilst customers in New South Wales and Queensland will save up to 8%.

It is a requirement for all energy companies to detail to their customers the savings which will flow through from the scrapping of the carbon tax. The Australian Competition and Consumer Commission are monitoring the companies to ensure those savings are delivered.

Business customers in Victoria can expect to see a saving of up to 18% on their electricity bills in 201415, with savings of up to 15% in all other states.

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Energy Australia has also confirmed that customers will save up to 8.9% on their electricity bills. This equates to an average saving of $132-$189 for Australian households in 2014-15.

Business Resource & Lifestyle | Issue 69 | September 2014

The savings which are being detailed to customers demonstrate the financial and economic cost of the carbon tax.

In its two year lifespan, the carbon tax cost the Australian economy $15.4 billion and was a direct hit on over 75,000 businesses. Yet for all of this financial pain, domestic emissions were projected to rise through to 2020.

There is a better way to reach our five per cent emissions reduction target by 2020.

The Government’s Emissions Reduction Fund will provide incentives across the Australian economy to lower emissions through new technologies and smarter practices, without hitting the hip-pocket of Australian households.. G Source:<http://www.environment.gov.au/ minister/hunt/2014/mr20140822.html?utm_ source=mins&utm_medium=rss&utm_ campaign=feed> viewed 22 August 2014

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LEADERSHIP

Political Corruption in the Premier State The Hon. Charlie Lynn - Member of the Legislative Council

Trust in our political institutions has been shattered by the raft of Independent Commission Against Corruption (ICAC) investigations over the past year. At the time of writing pundits have no idea where it will all end or what other political scalps it will claim. Suffice to say that it will take years, maybe decades, for the profession of politics to re-establish the trust they once had.

While ICAC should be congratulated for laying bare the ugly underbelly permeating politics in NSW today their efforts will be fruitless if they don’t drill down to the causes that created the environment for these historic show trials.

Former Prime Minister Julia Gillard was implicated in an illegal union slush fund during her career as a lawyer with Slater and Gordon.

Some find it interesting that she never stood aside whilst the allegations were investigated to protect the integrity of the highest political office in the country.

At the same time we witnessed the political philanderings of former Federal MP, Craig Thompson who alleged that somebody stole his mobile phone and wallet, used them to visit brothels then somehow drove back to the Central Coast and put them back in his pocket!

Rather than ask Thompson to stand aside from the Parliament to protect the integrity of the institution Julia Gillard and the Labor Party did everything in their power to delay his day of reckoning – which coincided with the date of the election that brought their seedy reign to an end.

ICAC then emerged to expose the greatest level of corruption in NSW since the notorious Rum Corp ran the colony. The allegations against former Ministers Eddie Obeid, Ian McDonald, Tony Kelly and Joe Tripodi were simply jawdropping.

It seemed that Labor would remain in the political wilderness for decades until they purged the crooks, spivs and thugs from their ranks.

Revelations in the current Royal Commission into Union Governance and Corruption indicate they have a massive task ahead of them.

The ICAC focus then shifted to Australian Water

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Holdings, a company initially linked to the disgraced Obeid family. The spivs running this company realised that NSW Labor’s use-by date was fast approaching so they began to look for new best friends in the Liberal Party.

Liberals were shocked when one of their brightest and most respected stars, Senator Arthur Sinodinos, was implicated. Whilst he still remains in the Senate it is doubtful he will ever recover from his association with the corporate spivs linked to the Obeids.

While nothing can excuse attempts by elected representatives to circumvent the law the revelations have exposed an interesting difference in moral standards between the two major parties. Labor has a ‘Party first – public second’ approach. They will never admit guilt, never apologise and will tough out whatever political scandal they face. On the other hand the Liberals have a low tolerance for political malfeasance and demand that Members accused of wrongdoing stand aside until investigations are complete.

If the political class are dinkum in cleaning up corruption they need to ban developers, real estate agents and conveyancing lawyers from the planning approval process.

Next to fall was Premier Barry O’Farrell for his memory lapse in not declaring a $3000 bottle of Grange courtesy of the same spivs who sullied the political reputation of Senator Sinodinos.

ICAC’s attention then turned to the operation of a political slush fund on the Central Coast. This fund, named EightByFive, was allegedly used to launder donations from developers who were declared to be illegal political donors.

Jaws dropped again as ICAC claimed the political scalps of two Liberal Ministers and another four MPs. At the time of writing nobody knows where the investigation is going, when it will end and who else will be implicated. All we do know is that it is a sorry time for politics in NSW. It is now clear that politically motivated laws banning a targeted category of business from making donations in a democratic society are unjust and will inevitably lead to attempts to circumvent them. Under the current system it is legal for a developer to donate to a Federal Member but illegal for them to donate to a State Member. It is legal for Trade Unions to make political donations but illegal for developers to do so.

Such laws breach the principle of common sense and increase the level of public cynicism about the political process.

The root causes of the EightByFive slush fund and the havoc has caused are yet to be examined.

There are two avenues worthy of further research.

The first relates to Local Government. If the political class are dinkum in cleaning up corruption they need to ban developers, real estate agents and conveyancing lawyers from the planning approval process.

The second relates to the motivation behind the establishment of a political slush fund on the Central Coast. All the Members it supported were conservatives. This meant they would be starved of election funding support by the hard left faction that controls the Liberal State Executive in NSW. Liberal insiders are aware of the links some executive members have to political lobbyists and shady developers in local government. Their exposure would be another interesting chapter in the most corrupt phase of politics in NSW since the days of the Rum Corps. G

For more topics and to contact Charlie Lynn, please visit www.charlielynn.com.au/blog.

Business Resource & Lifestyle | Issue 69 | September 2014

17

FEATURE

There is No Reason You Should Not Be Successful Richard Yuan is the CEO of ABC World Pty Ltd, Chairman of ABC Business Club, Chairman of Angel Australia China Investment Fund Q. Why have you decided to connect Chinese and Australian businesses?

A. Australian and Chinese markets supplement each other. Australia has high standards and China has the market volume to benefit from these standards. Short geographical distance and time advantages work well for fruitful cooperation.

When a work day in Sydney comes to an end, there are still two more working hours in China which is beneficial for workaholics. Thirdly, Australia is rich in mining, agriculture and food resources and China has a large market. This gives a lot of advantages to engage with China.

Furthermore, a food security issue in China also encourages Australia to export its products.

Australian financial system is quite advanced as well. It allows benefiting from exporting Australian know-how to the Chinese market, which has a great demand. And finally, Australian government has created an investor friendly environment.

Q. Which industries are the most attractive for Chinese investors?

A. The most profitable industries in which investors seek opportunities are mining, agriculture, property, education and tourism.

Chinese aggressively invest into real estate development. It is closely linked with current Australian immigration law. Agriculture sector is highly attractive because Australia has high food quality standards recognized throughout the whole world. Hence, a company can compete not just with developing countries but also with developed western markets. Tourism is also a big opportunity that still does not have much competition.

Q. What is your favourite case of cooperation between China and Australia?

A. The best one is always the next one! However, if we talk about past, one of the biggest projects was a recent $1 billion dollar investment into the Klumper twin-towers development at the Entrance in Central Coast. This investment was done by one of the ABC Business Club members, which is the part of an ABC World company.

Currently ABC World plans to invest in a new El Lago hotel in The Entrance in Central Coast. It will be a huge project of cooperation between two countries. This hotel may have gaming facilities and convention centres. The site for this project

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Business Resource & Lifestyle | Issue 69 | September 2014

Richard Yuan, ABC World Pty Ltd and Anastasiia Zakharenkova, SY Marketing Pty Ltd

is approximately 30,000 m3 and it is purely waterfront. It is believed that the hotel might become the major state infrastructure building.

Q. Do you think the trend of the increasing investments to Australia will continue during the next five years?

A. I definitely believe so. The trend is going to grow very fast. The political reforms and anticorruption campaign in China encourage people to invest abroad. Moreover, immigration law in NSW gives the possibility to get the permanent residency in four years with $5 million dollar investment.

Additionally, investors need to buy a property which drives construction and development industries. Hence, jobs will be created and the economy of Australia will grow. One more advantage for Australia is that USA and Canada have fulfilled their immigration quotas too fast and currently the immigration to these countries is restricted. That means that in 3-5 months more opportunities are coming and Australia is ready to meet them.

Q. Which challenges have you faced during your life on the way to success?

A. I came to Australia in 1996 by an exchange program to get a postgraduate degree in the University of Canberra. When I finished my studies I understood that there was not a job for me and I started to write for local newspapers and magazines for about $30-50/page. Then I was lucky to come to Sydney on my way back to China. My uncleâ&#x20AC;&#x2122;s friend convinced me to stay in Sydney for half a year to see the real Australia. That time I was sure that I will go to China soon. However, in 2 months, I was invited to give a free presentation during the professional seminar about the interpretation in China. After the presentation I was offered a position in a

TV shopping network for $83/hour. It was great luck for me! I worked there 1.5 years and saved some money. Then in 1999 I faced problems with applying for the permanent residency and I had to prepare all documents by myself. After that I decided to start up immigration agency with $20,000 savings and it was the wisest decision in my life.

Q. Which advice can you give to people who come to Australia to start up their own business?

A. First of all, try to survive starting with something small. It is important to adapt according to the conditions. Do what you need to do to survive and be independent. After you survived, do something interesting what you like and rely only on yourself. Believe that there is no reason you should not be successful. G If you seek for funding and would like to know more about Chinese investments, please contact ABC World to arrange a consultation.

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SY Marketing: Suite 13, Level 32 - 1 Market Street - Sydney. Phone number 02 92758857 www.sy-marketing.com.au - info@symarketing.com.au Business Resource & Lifestyle | Issue 69 | September 2014

19

WORKFORCE

Practical Learning Keeps the Fire Burning for Young People Debbie Robertson - TVET/SBAT Institute Consultant, TAFE NSW – Western Sydney Institute (WSI)

“When will I ever need to know this?” is a question that many a high school maths teacher has been asked by baffled senior students.

It is common for high school students to crave practical skills and knowledge which they feel will relate to their post-school career choices and it is also common for some students to become frustrated when much of their schooling does not fit into their understanding of what they will need to know when they have heard their last school bell.

With a higher proportion of young people now staying on at high school until the age of 17, high schools need to be able to cater for their students who crave learning beyond the classroom. One of the ways that schools can do this is through vocational education programs such as TAFEdelivered Vocational Education and Training (TVET) which gives students an opportunity to gain hands-on skills in a work area which interests them.

By completing TVET courses, students get a head-start into a career and also gain workplace experience which enhances their employment opportunities. TVET courses are nationally recognised TAFE NSW qualifications which articulate into further TAFE or University qualifications, in some cases counting as academic credit.

WSI has more than 50 TVET programs on offer for 2015 which not only count toward the HSC but also provide work experience and a practical outlet to students, helping them to maintain their motivation throughout their senior school years.

Many courses also count towards an ATAR. Through their TVET studies, young people can pursue interests in a whole range of areas linked to employment such as design, animal studies, beauty and children’s services. The NSW Board of Studies has also developed courses specifically for school students in industry areas such as automotive, business services, construction, electrotechnology, entertainment, financial services, hospitality, health services including nursing and aged care, information and digital technology, metal and engineering, primary industries including horticulture and agriculture,

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retail services, tourism, travel and events. These courses include some work placement which allows students to practice the skills they have learned and to make more informed decisions about whether their studies are leading them towards a career they would like to pursue.

The government is taking measures to address these shortages through the way it has remodelled its vocational education and training subsidisation. Exposing young people to careers through programs such as TVET is also a valuable way of encouraging enrolments in these

By completing TVET courses, students get a head-start into a career and also gain workplace experience which enhances their employment opportunities. TVET courses are nationally recognised TAFE NSW qualifications which articulate into further TAFE or University qualifications, in some cases counting as academic credit.

In the course of my work I have the privilege of working with a number of schools. I have seen TVET students who have excelled in their ATAR and gained skills which they have taken with them into university. I have also seen students who were unmotivated at school and at risk of disengaging from education become motivated and placed on the path to successful employment. All of these students have benefitted from the different learning environment, additional support and individual goal-setting which TVET facilitators provide.

skill shortage areas, as are the School-based Apprenticeships and Traineeships for which WSI also provides training. G

A full list of the TVET courses being offered by WSI in 2015 is available on the WSI website (wsi. tafensw.edu.au/tvet).

To apply, students should talk to their school advisor and obtain their parents’ or guardians’ permission. Applications are now open for 2015 and TVET classes commence in February 2015.

TVET programs are one of the most important tools for developing and skilling young people in school. Program goals include strengthening student leadership and the use of labour market information to drive career guidance and careerfocused activities. This is done through industry partnerships, work-based learning and job placement in key industries.

Recently we were involved in two local career exploration expos which gave young people an opportunity to experience some of the skills which are associated with different careers. Thousands of school students were involved in these expos and it was heartening to see the enthusiasm of students as they had what for some was their first encounter with these vocations. Many of these are skill shortage areas, that is, vocations where employers are struggling to find skilled workers to fill their demand.

TAFE NSW - Western Sydney Institute (WSI) p | 02 9208 9575 e | Deborah.M.Robertson@tafensw.edu.au w | wsi.tafensw.edu.au

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mix + match TAFE Business Resource & Lifestyle | Issue 69 | September 2014

21

WORKFORCE

The Challenge and Opportunity of Work Experience John Watters, Executive Officer – AusSIP

Recently I was preparing for a presentation and decided that I would include a Year 10 school photo of myself from the Year Book. Whilst flicking through the pages and reliving old memories, I started to reflect on some of the experiences pertinent to the presentation, namely work experience.

I completed work experience in 1992 at a primary school and a legal firm. Although I was sixteen and obviously knew everything about everything, both placements had significant impacts on me. During my experience at a primary school, I realised that children come with multiple and complicated issues and teaching cannot be done in isolation to these. Additionally, young children need more than lessons merely about reading and writing; they need to learn how to tie shoe laces, how to wear their clothes and appropriate behavior. After spending a week with young children, I could safely tick that option off my possible career pathways.

My second week was spent in a medium sized law firm in the city. Whilst the solicitors and paralegals did try to facilitate some learning, it was evident even to me that I was an inconvenience, as I was given menial tasks to complete and sent to the court houses to observe legal proceedings. Whilst I can appreciate that they tried and perhaps they were not au fait with a young person, the experience was uninspiring and off putting.

I still remember sitting in Hyde Park after taking a short detour from the Downing Centre and contemplating my future. The challenge for me, was that it was the last two weeks of the school year. My subjects had been chosen, it was too late to change schools and I wouldn’t have the chance to debrief my experiences with a career advisor for at least eight weeks.

This experience is not unique or confined to educational experiences of last century. Too frequently Year 10 students choose subjects based upon very little knowledge about career trajectories.

Furthermore, I argue that clearly observable high school career decisions are made in Year 8 when students are choosing subjects for Year 9. These subject choices strongly correlate to senior high school and often future career pathways. If you want to see the general outline of the 18 year old, find them when they’re 14.

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Work experience is an opportunity to inform and shape the career making decision of young people.

The true value does not simply lie in filling up some weeks at the end of the school year. Like any rich experience, much of the learning is often done afterwards, recalling and recounting stories. Have you ever noticed yourself relating travel experiences months and years afterwards, often with a different perspective?

best done by an external, cross-sectoral and independent group of people that can increase economies of scale and scope.

Youth unemployment figures are now tracking along dangerous European lines. The problem is not coming; it’s here. Trying to put the genie back into the bottle after it has been released is more expensive, time consuming and more

In the new landscape that has been created by Federal politicians, there is somewhat a disconnect between school students and the work force.

Work experience lays the foundation for increased employability and enhances resilience. In the past five years youth unemployment figures have sky rocketed in both pure numbers and duration of unemployment. The usual response by government bodies has revolved around finding some experience to keep them occupied and hopefully through osmosis some benefit will arise. Whilst this approach does have some merits, it is too ad hoc and almost punitive in nature. More importantly, the lead time is far too long.

In the new landscape that has been created by Federal politicians, there is somewhat a disconnect between school students and the work force.

Essentially, students are the responsibility of the state and once a student turns 18 and can’t transition into the workforce, they become a federal challenge under ‘work for the dole schemes,’ etc.

I am not arguing the merits of the new scheme nor am I supporting a welfare dependency mentality; far from it! Instead, I am lamenting about the lost opportunity we have whilst young people are students. Schools are one of the best places to prepare young people for the world of work due to existing education structures and the simple fact that we generally know where they are. Once students leave school, the longitudinal tracking is woeful at very best.

Against this backdrop, schools cannot do it all.

Schools are best at identifying troubled youths and following up with career advice. They are not best suited to work with industries at large or at identifying employment trends. This is always

challenging. Trying to rectify a problem that is most likely compounded and now more entrenched, particularly after the structures of school have been long forgotten should not be the answer. G

AusSIP working in Alliance with BREED and Penrith SIP can assist in finding opportunities for businesses to positively engage with young people and help build a more productive workforce.

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1300 889 132 Business Resource & Lifestyle | Issue 69 | September 2014

23

LEADERSHIP

The Class of ’92: Great Teamwork Applied

by Mike Conway, CEO & Founder of XVenture Organisations worldwide spend considerable time, energy and resources trying to find an answer to the question: what makes a great team? Imagine if we could get a really clear handle on this. Imagine the impact on results and outcomes. This article considers two significant and very different pieces of work that may help answer some of those questions.

The first is a movie from the UK and the second, a scientific study from the USA.

Photographer: John Peters, Collection: Manchester United, Getty Images

The Class of ‘92

One of my favourite films of the year is a documentary titled “The Class of ’92.” (fulwell 73 Productions 2013) “The Class of ‘92” shares a rare insight into six players of the Manchester United team (Butt, Beckham, Giggs, G Neville, P Neville, Scholes) who broke all the record books in the World game. A game that has in recent weeks brought together people from across the globe, and divided many too, with the focus being the World Cup in Brazil. (I disclose that I grew up not too far from Old Trafford and have been a Manchester United supporter all my life!)

My interest in Benjamin and Gabe Turner’s documentary “The Class of 92” is not just due to my sense of connection with the story of six young footballers which Sir Alex Ferguson and Eric Harrison, the head of youth coaching, had masterly brought together. My interest and curiosity has also to do with the lessons we can take from the movie, on how to foster and build a great team culture. Having now watched the movie many times, all my analysis confirms there are many. The documentary is a rich lesson for any organisation attempting to foster great teamwork.

The New Science of Great Teams

An article published in the previous year also provides some significant insights and lessons on what makes a great team. “The new science of great teams” written by Alex “Sandy” Pentland was published in the Harvard Business Review in April 2012. (Harvard Business Review Harvard Business School Publishing Corporation April 2012) Pentland who heads a research team at the Human Dynamic’s Laboratory at Massachusetts’s Institute of Technology attempted to analyse the

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science of great teams. After reviewing 2500 individuals, he suggested that the mystery of the “chemistry of high performing groups has been lifted….”, “…the key to high performance lay not in the content of a team’s discussions but in the manner in which it is communicating.” (A Pentland, HBR, 10 Must Reads on Teams. 2013) In other words, it’s not what we communicate, it’s how we communicate.

In my work as a coach and in my clinical practice this resonates considerably. We know and understand that clear communication can exist without uttering so much as a sound! Non-verbal communication provides as much as 90 per cent of what we communicate to each other: our body language, the shrug of a shoulder, the movement of our eyes, the change in colour of our face in response to a situation. It’s all communication.

I regularly tell people in my clinical work and in my work with teams, that just because someone doesn’t say very much, they’re still communicating! Paul Scholes, one of the “Class of ‘92”, is a prime example. Known as a “quiet lad”, he communicates in many more ways than what he says. What comes out in “The Class of ’92” is his wicked dry and often quiet humour.

Tone, timbre and speed in the delivery of a message can be the difference between calm and anxiety states. Manchester United became known as a team who won many “big” games in the dying minutes. The 1999 European Champions League Final is a prime example. Despite the pressure of the situation and time running out, the team remained calm and focussed throughout.

This resulted in a seemingly impossible win against Bayern Munich in the last 60 seconds of the match. At the most recent XVenture Challenge the winning team’s captain was asked what was the reason for their success. His answer: calm under pressure.

What Makes a Team Click?

Despite coming from different places and different backgrounds, “..We all sort of clicked.” (Ryan Giggs). Whilst we often can’t put our finger on what makes great teams click, there is typically unique buzz between team members. There are several moments in The Class of 92 where this clearly emerges. The “class” meets in a restaurant in Manchester and the love and care for each other is infectious. No great scriptwriter could manufacture the magnetic connection the six clearly have.

What is obvious about the team is the shared sense of fun. In a previous article I made the point that teams that have fun do seem to work better together (Mike Conway, XVenture finds the secret of what makes a great team, June 2014).

Gary Neville, Phil Neville, Ryan Giggs, Paul Scholes, Nicky Butt and David Beckham share their own thoughts and insights into the strength of the team and their teammates. Despite each of them achieving what all of us in every day life would consider “star and celebrity status”, they are so clearly proud and connected with each other. Often humble about their own contribution, skills and talents, they push their other teammates forward as critical to the team’s success.

LEADERSHIP Pentland identifies three key elements of communication that are critical to a team “clicking” : energy, engagement and exploration.

“How team members contribute to a team as a whole”; “how team members communicate with each other”; “how teams communicate with one another.” (Pentland: pg 26-29) When a team makes necessary adjustments to their communication to try and achieve their team ideal, their performance improves dramatically. (Pentland: pg 16). Using special badges worn by team members that collect electronic data, (sociometrics) on aspects including gestures, interruptions, tone of voice, balance of listening and talking. Together this provides a pattern of communication within the team.

Here are some of the key findings of the study.

Team members: • Talk and listen in roughly equal measure and contribution short and sweet.

• Face one another, and their conversations and gestures are energetic.

• Connect directly with one another – not just with the team leader.

• Take part in side conversations within the teams.

• Periodically break, explore outside the team, and bring information back.

“With remarkable consistency…..the most important predictor of a team’s success was its communication patterns….the researchers could fortell which teams would outperform simply by looking at the data on their communication. “(Pentland page 16). In other words, it is more significant to establish successful communication patterns and shape a team to apply these rather than just a focus on the quality and talent of individual skills.

Many will say that this is obvious and already well known. However, the extra layer of knowledge that Pentland and team have identified includes empirical evidence that: • 35% variation of team performance relates to face-to-face exchange; • a balance of 50:50 talking and listening improves the performance; • side discussions actually do help rather than improve team performance; • social time can lead to 50% of positive change in communication patterns.

As important as anything emerges a clearer picture on what makes a great team player. These “charismatic connectors” give equal time to all, connect team mates with team mates, engaged with listening as well as talking. Not always extroverts but happy to meet people. The more of these people in a team, the more success

Observations from The Class of ’92

Throughout “The Class of ’92”, most of these elements emerge explicitly and all implicitly. The “lads” know each other so well and know how each other communicates, and communicates

together both on and off the pitch.

“Six young lads enjoying life,” all with obvious skill, talent and a love and passion for the game of football. All from working class backgrounds where hard work and a dedication and commitment to a cause is important too.

Throughout the documentary, there are many examples of each of them working at their craft.

Be it Paul Scholes practicing 60 yard passes, or David Beckham setting up tyres for targets to “Bend it like Beckham.” Eric Harrison makes reference to Gary Neville not necessarily being the most talented footballer, and Gary Neville admits this too. However, his dedication, hard work and drive made him into a footballer of international quality. Success doesn’t come just from luck and great communication. It is necessary to have a certain level of skill too.

The Importance of Establishing Ground Rules

The Manchester United culture and philosophies like many other football clubs, are rich and unique. As well as being extraordinary coaches, Alex Ferguson and youth coach Eric Harrison act as the messengers and the custodians of this rich history, ensuring these were clearly understood by each of the Class. “You were massively aware of what you were representing: the history.” (Gary Neville) Sir Alex and Eric nurtured a group of young people who were all very different. From our own work we often observe the mistake team leaders make in choosing people just like themselves rather than finding unique people who can be bonded together with a common purpose, philosophy and communication processes. The documentary draws out the unique personality of the Class, but also demonstrates how each embraces the individualities of the others. Sadly, this isn’t something that always happens in teams.

In “The Class of 92”, there is a wonderful blend that integrates the uniqueness of each. The six are clearly close, having many significant shared experiences, both on and off the field over many years. Each individual character is important, yet not as important as the team.

“There was not one piece of jealousy between any of us. We all had each others’ back,” (David Beckham).“I was loving it.”(David Beckham).

“Just playing a game of football with my mates.”

(Paul Scholes).

In 2013, Sir Alex Ferguson released his autobiography. The book provides a unique insight on what in his view makes a great team.

He places value on those who aren’t scared or frightened when faced with a big task. A level of self-confidence is therefore essential. The “Class” understood and were committed to the Club and what it represented. They were committed to the team principles, and committed and loyal to each other. They were “inseparable” and “carried the spirit of Manchester United inside them.” (Alex Ferguson, My Autobiography. Pg 340 Hodder & Stoughton. 2013)

Observations on the 2014 World Champions – Germany

In the aftermath of the World Cup, Michael Calvin wrote a wonderful article in the Independent on Sunday reflecting on the success of the German National side that has now been crowned World Champions of football. He draws a parallel between the All Blacks team who won the Rugby World Cup in 2011 and the German team who have just won the World Cup in Brazil. “Each espouses a collective mentality which diminishes the distractions of individual brilliance. The team is the star; the system is sacrosanct. They allow others to be diverted by mawkish sentimentality, excessive emotion or an inappropriate sense of entitlement.” (Michael Calvin, The Independent, Sunday 13 July 2014, pg 23). He confirms like those at MIT, at Manchester United and those that have ever been a part of a special team – character as well as talent with low ego delivers a much more effective result. This is where “mutual trust and respect evolves naturally,” (Michael Calvin, pg 23). Phil Neville reflects on the team culture driven by Sir Alex and Eric Harrison that a team who works hard with dedication will always overcome a skilful team but lazy team. This was a fundamental part of their being.

Conclusions

The lessons from both “The Class of 92” and Pentland’s article may appear in the first instance obvious. So obvious, that for many teams, the principles are still the exception not the rule!

Reviewing “The Class of ’92” as a case study on teamwork, provides a rich resource of learning.

Pentland and his team’s work on teams is significant too.

In our work at XVenture we continue to observe those teams performing more effectively have these similar communication patterns. They have a defined way of communicating, like being with each other, have a shared sense of purpose, embrace each others’ differences, are confident and decisive in taking risks together and have a lot of fun. Our recent article on the “Good Institute” team who so decisively won the XVenture Challenge of February 2014 confirms that you don’t have to be a Manchester United to apply such principles. (Mike Conway, XVenture finds the secret of what makes a great team, June 2014) G Acknowledgements: With thanks to Harvard Business Review Publications and to David Soutar and the team at fulwell 73 productions. Thank you also to Getty Images.

“The Class of ‘92” is available on iTunes and Amazon. On DVD in Australia via SBS and Universal Pictures in the UK. Feel free to make contact with the author to discuss this article: mike@xventure.com.au (C) Copyright 2014 Michael Conway. All rights reserved.

Business Resource & Lifestyle | Issue 69 | September 2014

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Business Resource & Lifestyle | Issue 69 | September 2014

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Business Resource & Lifestyle | Issue 69 | September 2014

27

BUSINESS ADVICE

Time Ran Out for the Socialmediapreneur...

Daniel Moisyeyev, B. IT

There is no such word as socialmediapreneur. It’s just some words I’ve joined up to describe an entrepreneur with a focus on social media. After all, there is already an intrapreneur, ideapreneur, mumpreneur and many more preneurs that have recently been invented to describe all kinds of people in all kinds of unique situations. Please stop this madness.

The “Social Media Marketing” Obcession If your email Inbox doesn’t automatically delete messages that are over a year old, you can do an interesting experiment. Open up and check your emails that date 2011-2012, and if you’re like me, and receive a lot of newsletters and offers from people that you cross paths with you will observe an interesting phenomenon.

There will be emails accumulated on a daily basis touting the virtues of social media and the newly developed solution targeted to businesses called social media marketing. There will be countless podcasts (have you ever listened to a podcast?), webinars (have you ever watched to a webinar?), traditional seminars, package deals and business propositions with a focus on marketing your business to a massive, now accessible audience in the digital world.

If you look back just a few years back you can find a lot of services on offer that are no longer around today. For example, paying a professional to establish a Facebook page or a Twitter account for your company. The idea of paying somebody for a task like this now seems laughable.

This insanity took place after generations other than the widely known “Generation Y” discovered the existance of the social media world and went on to transform a fly into an elephant. The end result is that most people today cringe when the terms “social media marketing” or “social media expert” are mentioned.

The Hype Cycle I would like to point out the diagram that is included in this article. This diagram shows what is known as the “Hype Cycle” and is used to describe human behaviour that occurs when a new “next best

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thing” is released into the market. The Hype Cycle is particularly effective at describing new concepts that are adapted online - these services tend to have low barrier of entry and as a result, the cycle can be condensed into as little as a year from start to finish with some particular cases (e.g. short-lived QR Codes).

Let’s ride the cycle from start to finish.

Once the “next best thing” is released into the marketplace, events start taking place in a predictable order.

1.

The concept is considered as cutting-edge.

2. Some early adopters of the new concept become suppliers and are able to utilise the concept to their advantage - for example, by charging a premium for a service. Customers are willing to pay for the new technology as they consider that it will give them a competitive edge. These early adopters tend to be the real professionals that understand the true nature of the concept - thus they know they have a limited time before the market will become saturated.

3. The new concept becomes widely known and used. Hype starts to build up around the technology and it is touted as the ultimate solution.

4.

The market starts to become saturated. With new concepts that have a low barrier of entry to suppliers (e.g. the Social Media Marketing), amateurs and scam artists quickly join the frenzy in an attempt to make a quick buck.

5.

The concept has now been tried by a large number of customers and found that it does not deliver the results (i.e. Return on Investment) that were promised. The pool of potential clientele starts to shrink.

6.

The next consequence is that the pool of suppliers shrinks as they are forced out of business and their services are no longer needed.

7.

An equilibrium is eventually found and the new concept remains in the market on sound fundamentals – growth is now dictated by true market demand.

This phenomenon isn’t limited to the dawn of social media. It applied to Web Design, Search Engine Optimisation (SEO) services, Blogging, Mobile Apps, QR Codes and Cryptocurrencies (the last one hasn’t yet been done in Australia, but any

day now and we will see experts running around, screaming about the virtues of Bitcoins) in exactly the same manner.

... Where is “Social Media Marketing” today in terms of real business?

I think it’s time to make the call that the hype that surrounded social media is over and we can now pick through the rubble and make our own conclusions.

The typical social media network company page (e.g. a Facebook page) has found a niche in customer service applications for larger companies.

Devout customers and loyalists do subscribe to these profiles and follow updates; it’s a cost effective way to keep your customers updated with new developments provided that the follower base is large. These pages are also notorious for transforming into complaint boards overnight look into some car manufacturer pages to see this problem. Bad publicity will rear its ugly head on these company pages and deleting comments without addressing them will only make matters worse.

Larger companies can only make their social media pages worthwhile due to the sheer quantity of followers. This isn’t the case for smaller companies, where your followers may be your friends or just a couple of customers. The situation here is quite grim - new followers, leads and customers will not spawn from your social media efforts alone. It’s a Catch 22.

Twitter became a great tool for politicians and celebrities to broadcast immediate news and developments to their followers. That’s about it.

LinkedIn can be used for keeping your resume fresh and doubles as a large business forum.

Unfortunately, personal contact is a little tricky and approaching new potentials is difficult - it’s hard to your connections into clients.

YouTube found its application as a free video hosting service. To get a decent outcome from marketing through YouTube alone, a video would need to have the ability to go viral or have interesting, educational and informative content.

Is there anything else? Yes, there are other less common social media platforms that you may not even know about. There is Google+, Pinterest, Tumblr, Myspace, flickr...

BUSINESS ADVICE

The harsh reality is that social media marketing has never been effective for attraction of new business.

With the exception of well planned and executed viral marketing campaigns, there is no effective way to broadcast your message to a wider audience.

This simply isn’t possible as implementation of this functionality will immediately remove all incentive to use a social media network in the first place.

Some platforms have managed to sneak in few paid advertisements into account newsfeeds - this is a very annoying practice and does not bode well with users. Advertising and social media networks simply do not mix.

Remember, the real world scenario is drastically different from the hype and mega promises. It was always the case and will never change in the future.

G

If you are interested in professional Web Design and Development Services, please do not hestiate to get in touch with GWP Media. We offer solutions that range from small company websites to complex projects that include custom shopping carts, live bank transaction systems and Paypal integration.

GWP Media p | 1300 889 132 e | daniel@gwpmagazine.com.au w | www.gwpmedia.com.au

“The Hype Cycle is a branded graphical tool developed and used by IT research and advisory firm Gartner for representing the maturity, adoption and social application of specific technologies.” - Wikipedia

Business Resource & Lifestyle | Issue 69 | September 2014

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FEATURE

Supporting Local Suppliers through Bartercard

French-born chef Manu Fillaudeau, and his Perth born wife Jasmin, started their restaurant, Fillaudeau’s, situated in a rustic wine estate fringing Perth, in 2012. Serving up a selection of French provincial cuisine, Fillaudeau’s has won five awards in just two short years since opening its doors to food-loving locals and a devoted base of interstate and international customers.

Manu, started Fillaudeau’s with the help of Bartercard and has since continued to use the currency-alternative to leverage his buying power and supplement and expand his business in a number of ways.

Filaudeau’s’ focus is on sustainability and locally sourced produce, folding into an ingrained philosophy of mouth-watering cuisine using the freshest ingredients. However food is not the only locally sourced ingredient at Fillaudeau’s – through the use of Bartercard, Manu supports local industry in a number of ways while conserving his cash flow.

Q. Why did you join Bartercard?

We joined Bartercard before opening Fillaudeau’s to assist with the start-up of our business. We fully utilised the interest-free line of credit offered to members. In exchange for buying on barter, we provide our restaurant service back to members in the network.

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Business Resource & Lifestyle | Issue 69 | September 2014

Q. Where does the passion for sustainability and locally sourced produce come from?

My wife and I both grew up in regional areas where food was sourced from the land rather than the supermarket, so it was important for both of us to support local industry. 60% of our ingredients are sourced within 8 kilometres of the restaurant including seafood, meat, free-range poultry, eggs, fruit and vegetables from local markets in Perth. Supporting our local farmers and growers means there is more quality and variety in our produce which is important as our kitchen relies on many flavours. As a member of Bartercard we have also supported many local suppliers through spending in our business to build Fillaudeau’s up and keep it going.

Q. What do you spend your Bartercard trade dollars on?

Prior to opening the restaurant we used Bartercard to purchase all the essentials; from tables, chairs, curtains and furniture for the front of the restaurant to ovens, fridges, kitchen equipment, our point of sale, computers, printers and ink. Today we use it to cover the cost of fridge technicians, plumbing, pest control and a number of other expenses all without using cash – which lets us keep more money in our pockets to spend where we want.

Q. What percentage of your business is in Bartercard?

Overall Bartercard makes up around 10% of our

business today but it was getting started where it really helped.

Q. How has Bartercard helped your business?

Using Bartercard to source all of our business expenses means we keep money in the bank each time we trade. The extra business created through Bartercard converts to bookings in the cash market through word of mouth.

From a networking perspective being in Bartercard is also useful because it lets me speak to members in the network who I can potentially trade with to grow my business further. It has helped me build contacts in advertising, media and many other industries that are useful in so many ways.

At the end of the day it lets me share my passion with more people. G

Bartercard Australia p | 1300 BARTER (1300 227 837) e | info@au.bartercard.com w | www.bartercard.com.au

Feeling your business can grow but don’t know how?

Bartercard will: • bring you new customers • improve your cash flow • help move stock or fill seats • fill downtime • improve your market share • increase your networks

Bartercard has been helping Australian businesses for over 22 years. With 55,000 cardholders Australia wide, it’s a great way to build value in your business.

1300 BARTER bartercard.com.au Business Resource & Lifestyle | Issue 69 | September 2014

31

SOCIETY & LIFE

Wake up! Stand up!

Step up! Speak up!

Angry Anderson, AM

What does it mean to be Australian?

Brings to mind the great wisdom that it is better to die on your feet than live on your knees.

Being Australian used to mean just that and all that comes with it...why am I saying used to? It still does! It still means that! We just lost sight of it for a while. We took our eyes of the ball and were distracted but now it’s time to focus back on the game. Time to get our priorities back in order. Time to take back control of our own destiny, our own lives and our own country.

Recent events, both here and overseas, have shown us that our kindness has been mistaken for weakness, that in pursuit of a ‘fair go’ for all, we have let our internal enemy assume that we no longer have the will, the resolve or the heart to defend ourselves and all that we hold dear.

Recent events, both here and overseas have shown us that, sadly, being born here does not automatically mean that you are Australian, does not mean you are an Aussie, because being Australian is not just a matter of being born here.

Where you were born means you are a citizen of that country but sadly these days it does not mean, as it used to, that you are a true native of the country. Once it would have meant that you loved that country, that you were loyal to that country, that you would uphold the laws of that country and that you would defend, even unto death if necessary.

Once it would have meant that you would not only learn the language of that country but that

32

Business Resource & Lifestyle | Issue 69 | September 2014

There can never be two ‘nations’ living in the same country. We are one country under one flag, one people united by all that is good and right. you would make every effort to learn and honour the ways of that country, but not any longer.

Witness the slaying, in Britain, of a British soldier at the hands of British born Islamic extremists. It is only a matter of time before that kind of atrocity happens here in our beloved Australia. What we will we do then?

I have just returned from remembering those men and women who fought in the Vietnam campaign.

I was reminded, once again, of the sacrifice some Australians have made in defence of right over wrong, of good over evil, of just over unjust.

These were men and women willing to go to a foreign country because of the belief that there is no finer calling than that found in defending the rights of all people to live in freedom because that is what they believed they were doing. They believed right or wrong, that they were defending the rights for people to live in peace in their own country, free from oppression, free to go about their daily lives without the fear of being persecuted in any way for believing in their God or practising their way of life.

These same survivors of that conflict and the many younger members of that same revered fraternity, the veterans, are people who went away to defend rights and liberties. These brothers and sisters, young and not so young

were unanimous in their feelings about what has happened to our country, our Australia. “What the hell is going on?” “Where are all the Aussies?” ”We shouldn’t be putting up with this shit”. ”Is there anyone in government who will stand up for Aussies any more?”.

Well hopefully, finally there is!

Just as John Howard before him, when he sent Aussies into Timor, it just may be that our current Prime Minister is ready and able to step up to the mark, to speak up loud and clear on behalf of all Australians not just those of the politically correct Left.

It just may be that Tony Abbott, not our most popular Prime Minister, historically speaking, is the man for the job. He is the man for the moment, the man to put his life, his political life that is, on the line for his country. After all isn’t he the same Tony that has put his life on the line time and time again before, in his role as surf lifesaver and volunteer fire fighter?

Recent international events have seen him stand up, step up and speak up on behalf of Australia and Australians when it may have proved unpopular for some to do so but then again showing ‘ticker’ is not always about doing what is popular but doing what is right.

SOCIETY & LIFE

Tony Abbott has at least shown us that he has ‘ticker’ when it counts. When someone must be first to stand up and be counted, knowing that to be first means, that for some time at least, standing alone.

Well I too want to stand up and be counted.

I too want to step up to the mark.

I too want to speak out on behalf of Australia and all Australians, even those on the left that got us into this mess in the first place.

Yes! You heard me right! Those lefty apologists that say most Aussies are cultural buffoons, well they say we have no real culture at all and the one that many of us acknowledge as Aussie they refer to as ‘red neck’, ‘bogan’ ‘racist’ or any number of other derogatory names.

their children educated to become whatever this country can offer them, where their women are as equal as their men in opportunity, where they can, should they want to, adopt western ways, where their voice can be listened to and their opinions considered, where they can come and go in the spirit of freedom, where they can be free.

same country. We are one country under one flag, one people united by all that is good and right.

The Islamic extremists have no place in our Australia.

The Islamic extremists should not be tolerated in Australia.

The Islamic extremists must find no sanctuary in Australia.

The Islamic extremists must find no comfort in Australia.

The Islamic extremists should be hunted and hounded out of Australia.

The Islamic extremists and all that aid and abet them should find no mercy or sympathy in Australia.

Angry Anderson AM is available for the following public speaking.

There is an element that lives here in our country who openly plots our destruction, the destruction of our way of life, of we as a people and all that we hold dear and up until now we have misguidedly tolerated them because we were told that it was the right thing to do. Well, I never believed it then and I don’t believe it now and what’s more I never will.

Always your friend, Angry.

G

Subjects covered: • personal life journey experience, overcoming obstacles along the way like his battle with alcohol and drugs, humorous anecdotal stories about his life on the international stage with his band the legendary Rose Tattoo; • inspirational messages on his ability to deal with surviving all his tribulations; • stories about his involvement in Television which introduced him to his dedication to helping others in need; • his commitment to Men’s Health; • his life long battle with depression and his dedication as ambassador, to spreading awareness regarding Prostate Cancer.

I went along with it for the sake of all those decent hard-working people of the Islamic faith that wanted to do the right thing, because in keeping with all that is Aussie, they deserve a ‘fair go’.

They came here or were born here and want to become part of something greater. They believe in working to build something better. A home where they can quietly go about practising their religion, where they can raise their children, have

Go and find comfort with your God.

w | www.angryanderson.com Any person that cannot swear unconditional loyalty to Australia should never be allowed to hold political office of any kind.

There can never be two ‘nations’ living in the

Business Resource & Lifestyle | Issue 69 | September 2014

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CLASSIFIEDS AUTOMOTIVE Lander Toyota

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Business Resource & Lifestyle | Issue 69 | September 2014

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Business Resource & Lifestyle | Issue 69 | September 2014

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LAND A BETTER DEAL AT LANDER TOYOTA The Lander Toyota better buying experience starts from the moment you enter our stunning new showroom. Our professional consultants will discuss your needs and present all the options available to you from the exceptional Toyota range.

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