Business Connect: Feb–Mar 2009

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Feb/Mar  09 Vol  74 $6.50

President’s Prize winner Kimberley Kampers

What makes a winning business?


DON’T PANIC Attention Business Owners and Managers If the current economic climate is causing you concern and your business is facing challenges that seem out of your control, find out how to defend your business against the ravages of the global financial crisis and avoid a meltdown. Go to www.donotpanic.com.au and see how we can help you not only weather the storm but come out the other end fighting fit.


Business Connect Magazine

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Contents Editor in Chief Ron Krueger Inquiries: (02) 9350 8149 ron.krueger@nswbc.com.au Advertising Inquiries Ron Krueger (02) 9350 8149 Design Tracey Orehov 0416 179 044 Photography Various Printer Agency Graphic World (02) 8825 8900 NSW Business Chamber www.nswbusinesschamber.com.au 140 Arthur Street North Sydney NSW 2060 Locked Bag 938 North Sydney NSW 2059 13 26 96 Member Services: 13 26 96 Fax: (02) 9923 1166 memberservices@nswbc.com.au CEO/MD Kevin MacDonald. Business Connect Magazine published bi-monthly. Subscriptions: $40 per annum (plus gst). Registered by Australia Post publication number: pp255003/03891 ISSN: 1328-259x. The information published in Business Connect Magazine is subject to copyright and may not be reproduced in any form without written permission from NSW Business Chamber. The opinions expressed in Business Connect Magazine do not necessarily represent the opinions of NSW Business Chamber or its staff. The information published in Business Connect Magazine is intended as general information only and should not be relied on in place of specific legal or professional advice. No responsibility or liability is accepted by NSW Business Chamber or its staff for any claim which may arise from any person acting on the information published in Business Connect Magazine.

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Tips

A new era emerges – CEO message The NSW Business Chamber is looking closely at the interests of its members during the economic downturn.

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>  Benchmarking takes financial figures and converts them into ratios, which allows you to compare your results to those of your competitors. >  Organisational psychologist, Tony Vickers questions whether reducing staff is a smart business move during the economic downturn.

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News and views

Letters

If you want your say then here’s your opportunity.

Charting a course through choppy waters – Opinion NSW Business Chamber President, Ian Penfold reviews 2008 while looking ahead at the economic challenges for this year.

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What makes a winning business? – business stories Profiling the NSW Business Chamber 2008 Award winners featuring Kimberley Kampers, Sykes, Tomago Aluminium and Markitforce.

Central Coast members win Australia Day accolades; MP Mike Baird addresses business luncheon; Twenty three year old local fashion designer wins NSW Business Chamber’s 2008 TCF&L Award; and NSW Business Chamber member, The RedBalloon Group wins major Nokia award.

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Ask an Expert

What are the 2009 public holidays for all states and territories throughout Australia and what are an employee’s entitlements to a public holiday dependent upon?

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Products

NSW Women Going Global is giving Australian women a better chance in the exporting world.

Many of theses articles are available online www.nswbusinesschamber.com.au


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What makes a winning business? – CEO message

New era emerges he advent of 2009 sees a new dawn in global politics. To the recently elected President Obama Barack, it is a “new era” in America, – one which, he hopes, will see an audacious change in its direction.

> Kevin MacDonald Managing Director, NSW Business Chamber

His inauguration, last month, comes at time when the world’s number one economy, the United States, is suffering from a deep set recession. Since the first day of taking office, his primary goal is to fix the American economy; his intention is to reinvigorate the economy with a trillion dollar stimulus package. Back at home, the Australian economy is also suffering. Treasurer Wayne Swan is proposing an additional stimulus package to lift the Australian economy out of its quagmire in response to the strains of the global credit crisis, the declining share market, and historic low returns on super funds. We need to see the same from our State Government. It too should be taking steps to stimulate the NSW economy. It shouldn’t, as we saw in the Mini-Budget, be increasing taxes that hit businesses that are already doing it tough. Australian businesses are feeling the brunt of not only an ailing American economy, but a Chinese market which has slowed growth from 13 to 6.8% percent. Unemployment in NSW is well above the national average and this can’t be blamed entirely on the global downturn. The NSW economy is suffering from a decade of neglect and government must act now to fix the structural flaws before it is too late. The NSW economy urgently needs stimulatory measures to kickstart growth and job creation.

The State Government is weak on policy and slow to act on important issues such as infrastructure, skills, and tax. In the meantime, large organisations such as ALCOA, BHP and the major banks are taking drastic steps and slashing their workforce.

He knows the value of creating a workplace environment which is harmonious and productive. He also knows that’s it’s not easy achieving such a culture especially when there are external pressures such as growing imports affecting the business.

At the other end of town, smaller businesses are also reviewing their operating costs and determining how they can best curb their spending.

While he believes that training and education are critical to his business, he also knows the value of his membership to NSW Business Chamber.

And while big businesses have a tendency to be ruthless, smaller businesses often need to be more pragmatic. Their most important business asset is usually their employees.

Some members will be evaluating the value of their memberships and subscriptions. It’s one of the first items in your spending checklist that your accountant will suggest you review.

The skills and labour shortage issue stills hangs in the air. It threatens many business owners, especially those in regional NSW where it’s often difficult finding appropriately skilled workers.

The situation is that everyone is tightening their belts from the large corporate down to the household budget. A volatile market often requires a change in thinking and direction.

Retaining a worker is often more cost efficient than laying off and then recruiting again, but there will be times when business owners have no choice but to dismiss employees.

As our members adapt to the changing business conditions, so is NSW Business Chamber changing as part of its reinvention to better assist the 300,000 employing businesses in NSW in response to their needs.

Thinking back to the winners of last year’s NSW Business Chamber Awards, held under the Big Top at Luna Park on the Sydney Harbour foreshore last November, I again extend my congratulations to the four winners, and in particular Kimberley Kampers which won both the Education and Training category award and the coveted President’s Prize. The company’s Managing Director, Bruce Loxton, is taking the current crisis on the chin entrusting his staff to ‘go the extra distance’ during the crisis.

Our major focus will continue to be on business improvement and business sustainability issues, not just traditional compliance related services. We understand your needs and will represent your interests to Government. The NSW Business Chamber will look after your interests as if they are our own. It’s a new era for NSW Business Chamber and together we can make NSW a better place to do business.


Local knowledge, global expertise. When it comes to opportunities abroad, we have the local knowledge of issues influencing your business as well as the global expertise you need to make the right decisions. In fact, we have dedicated Trade Finance specialists in every state to help deliver innovative and tailored trade solutions. It’s this commitment to the exporting industry that has led us to sponsor the Australian Export Awards for the past 21 years. To see your company go places, contact Commonwealth Bank today. Call 1300 654 112 from 8am to 6pm Email tradefinance@cba.com.au Visit commbank.com.au/trade Commonwealth Bank of Australia ABN 48 123 123 124. CBABM0271_R


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Letters

Letters to the Editor If there’s something weighing heavily on your mind related to business or there’s an issue or a suggestion you wish to make then email your letter to ron.krueger@nswbc.com.au All letters to Business Connect must carry the sender’s day phone number for verification. Letters should be a maximum 200 words. By submitting your letter you agree, that Business Connect may edit it for legal, space or other reasonable reasons and may, after publication in the newspaper, republish it on the Internet or other media.

Dear Editor, I just received the latest copy of Business Connect Magazine and thoroughly enjoyed reading your inspirational cover story on Kylie Kwong! When much of the nation goes on holiday after Christmas, business activity shrinks and many small and mid-size enterprises face a two to three month cash flow drought that can bring the business unstuck. This Christmas is likely to be worse than recent years, because the global financial crisis is squeezing credit and bank overdrafts and trade payments have been slowing. Unless you are an ice cream seller at a beach or a removalist firm, which traditionally have their busiest trading over Christmas and into the new year, you need to start preparing now to cover costs and maintain strong cash flows when business is traditionally quiet. Without adequate planning now, the business may have to deal with serious issues next year, restricting its ability to benefit when trading does start to pick up after the drought. Small businesses should brace themselves for an economic slowdown in the wake of turmoil in international finance markets and a decrease in the value of the Australian dollar.

They should be keeping a close watch on cash flow, considering the most appropriate finance options and improving administration processes. The environment will become more challenging, so now is the time to prepare. Greg Charlwood, Chief Executive Bibby Asia Pacific

Dear Editor, Congratulations on the latest edition of Business Connect (December/January 2008) . It’s high time we had such practical tips and advice particularly as business does it tough in the current climate. While it’s hard for many of us, if you think outside the square, you’ll come out of the downturn fitter, stronger .. and more profitable. As you say, it’s a time to review your costs and keep your cash flow moving.

But what we can all do is learn from the experiences of other successful operators to enhance our own connectivity. Once again well done and great photos of the big bash! Bruce Wayne, Blacktown

Dear Editor, What is it with the press? Every time I glance at the major dailies, I’m struck dumb with glaring headings professing doom and gloom. Every time I sit in my ageing car on a congested Sydney road, the radio hacks fill my ear drums with flapdoodle about the turbulent times. When I sit at home after a hard day at the office, with a ‘silver bullet’ in my hand, Alan Kohler disappoints me again by showing me diagrams with arrows that only point downwards.

Kylie Kwong summed it up perfectly –‘It’s all about working with your intuition, your heart and soul’.

I go to work and my cerebellum crazy colleagues fill my head with negative thoughts about the economy.

Most entrepreneurs and business owners understand the fundamentals. They feel the essence of what needs to be done to reinvigorate their businesses in these turbulent times.

My god! It’s only a recession. Bite the bullet, knuckle down, and get on with it as only pioneering Australians know how. I’m sure the migrants who built this country could show us a thing or two! Albert Niedemeyer, Niedemeyer Funerals, Dover Heights


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What makes a winning business? – Opinion

Charting a course The following is an edited version of the address given by NSW Business Chamber’s president, Ian Penfold at the 2008 Annual Awards.

“Last year was a momentous year for businesses across NSW with the Federal Government facing what has emerged as one of the biggest economic challenges in history.

Never has this been so important to our objective – to provide our members with the best possible advice – and opportunities to improve and grow their business.

In the early part of the year we were being warned about the economic storm clouds on the horizon, but little did we know back then just how brutal that storm would be.

Tonight is a night to celebrate the successes of 2008, and pay tribute to the best and brightest entrepreneurs in NSW.

The turmoil of global markets has shown how Australia is not, and cannot expect to be, immune from international events or markets. While the global credit crunch, share market volatility, currency fluctuations and interest rate movements have taken their toll, it has also demonstrated the fundamental resilience of NSW businesses. While some younger entrepreneurs have enjoyed a record period of economic sunshine, many business men and women have lived through much tougher times. They showed their resilience and strength then – and are showing it once again. Our businesses are innovative and willing to adapt and change to stay competitive in these challenging economic times.

As the state’s peak business organization, the NSW Business Chamber is committed to championing the needs of business. This means being at the forefront of thought leadership and best business practice. As our voice and influence in public policy grows so too does the value we provide to our membership and industry.

Strong advocacy gets better outcomes for business Our effectiveness as an influencer of government was no better demonstrated than through the NSW State Government’s decision to cut payroll tax. This decision is indeed a great victory for our organization and while for a moment it appeared these cuts were at risk of being taken away commonsense on the day prevailed.

Payroll tax is a tax on jobs. It gets in the way of employment growth and our competitiveness as a state and businesses across NSW will see a tangible benefit as a result of our strong advocacy on this most critical issue. We are focused on helping business grow whether that is through exploring international opportunities, employing new staff or increasing your networks. We make it our business to support yours. We understand that running a small business is not just another job, it’s a lifestyle. You’ve taken risks, made sacrifices and had the innovation and motivation, to take an idea and turn it into a business. And that’s why we’ve continued to change our business to better support yours. What has NSW Business Chamber achieved for its members? Over the past year… these are just some of our achievements: >> ABLAC our apprenticeship centre serviced over 19,000 businesses across NSW and the ACT – up 18 percent from last year; >> We’ve built on our profile in the public arena and consolidated our position as the voice of business in NSW;


What makes a winning business? – Opinion

>> A record breaking 100 Federal and State MPs took part in our annual Pollies for Small Business event which continues to attract strong support from our chambers of commerce network especially in Regional NSW. >> Our strong advocacy played a key role in the reduction of payroll tax, cuts to Work Cover premiums and preparations for this month’s State Governments mini-Budget; >> Almost 9,000 people took part in NSWBC events ranging from workplace relations, human resources, International trade and business development; >> The NSWBC leads the way on ‘Fixing the Federation’ and lobbying government to reduce red tape; >> More than 35,000 businesses received support from NSWBC; >> The Business Hotline handled over 7,000 emails an increase of 2,000 over last year; >> Attendance at our OH&S public events increased by over 50 percent; >> Australian Business Foundation celebrated its 10th anniversary, 10 years of first-rate thought leadership and innovation;

>> ABLAC successfully placed over 500 people with disabilities into apprenticeships and traineeships;

Chambers and staff who have all contributed to the continuing success of our great organisation.

>> Sydney Chamber of Commerce’s top tier of membership Sydney First has grown to over 30 members;

Adapting quickly to the business environment

>> Our Defence Industry Unit influenced the development of the Federal Government’s defence industry policy;

But the work does not end there. We need to ensure that our organisation continues to adapt to the rapidly changing business environment, to better meet the needs of our members.

>> Illawarra Business Chamber’s Apprenticeship Project has now placed over 350 young people into apprenticeships;

And over the next year we will need to:

>> A new and improved events program so you can expand your networks, gain knowledge and grow your business;

>> Provide strong leadership to inspire public policy debate, and continue to push the reform agenda;

>> Increased benefits such as wider access to the Business Vitality review, an assessment tool and a corporate governance toolkit of information and documents; and

>> Lobby government on issues important to business such as further tax reform, fixing the Pacific Highway, and cutting red tape.

>> Developing the Business Innovation Centre, to better understand the needs of our members through applying strategic insights and research… 2008 has indeed seen significant change.

>> Build on our membership base of 35,000 members and associate members;

My sincere thanks go to the Board, Managing Director and CEO Kevin MacDonald… the State Council, Council committees, taskforces and their chairs, regional presidents, Regional Advisory Councils, local

>> Deliver education campaigns, to prepare the business community for the Federal Government’s carbon emissions trading scheme, deal with the international economic volatility, and the continuing changes to the industrial relations system. >> Further enhance our membership

model to reflect the changing needs of all members; >> Expand our reach and influence through increased collaboration with governments industry groups, interstate and local chambers of commerce; >> Improve our operational performance by applying commercial and financial discipline to ensure our ongoing business sustainability; >> Continue to pursue efficient service models including online delivery; and, >> Enhance our people performance by adopting best practice people engagement strategies. The past year has been a tough time for businesses across New South Wales. While no one should underestimate the challenges we all face, let us remember the strength of will and resilience our businesses possess. It will no doubt be a turbulent ride, however, with the right planning and innovative thinking businesses can chart a course through these choppy waters and emerge reinvigorated, and ready to thrive once again.”

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What makes a winning business? – a business story

Going the extra distance by Ron Krueger

As a major manufacturer and employer in the Northern Rivers region, Bruce Loxton, Managing Director of Kimberley Kampers, knows how critical education and training is to the success of his business. And while some business owners are cutting back on training in these tough times, Bruce remains steadfast. “It’s during times like these that employers need to get their employees to go the extra distance, to produce a better quality product and increased productivity.” Education and training, he believes, is the key. Since Bruce took over the off road camper and caravan business

in 2003 (the business began in 1996), he has, with the assistance of his management team, devised a process to manage and measure performance based on a rigorous and structured training program. Eighty percent of the 70 employees are involved in certificate level initiatives including Recreational Vehicle Manufacturing and Competitive Manufacturing. These initiatives are organised in collaboration with the Northern Institute of TAFE and Group Trainers MEGT. Both young and mature individuals can apply for apprenticeships. “We offer mature (prior work experience) apprenticeships to employees who have worked with us and regret not taking an apprenticeship

earlier in their career.” One employee is studying for a Bachelor of Business at the Southern Cross University. The company is also a “Safety Net” partner in the NSW State Govt VOC initiative at Ballina High School. Education and training programs, the adoption of Lean Manufacturing techniques, standardised work practices, check lists for assembly roles, the practice of multi-skilling and rotating trained people into different roles, and consistency between all teams on the operating line, have all contributed to creating a culture which encourages employees to go that extra distance – and to be recognised as a “Kimberley Hero”.


What makes a winning business? – a business story

Kimberley Kampers is a major manufacturer and employer in the Northern Rivers. The company won both the Education & Training Award as well as the coveted President’s Prize as the most outstanding business. Eighty percent of the company’s employees are involved in training and education.

Training is a business tool The investment in staff as a fundamental business tool is coping with the company’s sustained growth and paying dividends. “We have achieved greater than a 20 percent compounded growth rate over five years with new and innovative products,” Bruce says. “While these new products have delivered high growth, one of the greatest costs with new products is loss of productivity with design improvements and warranty costs.” Total payroll costs have reduced over the past two years to 21.16 percent. Meanwhile, the company’s value add has increased to 3.12 over the same period. The company measures productivity in two ways: 1 Payroll as a percent of revenue (fundamental output over input) and

2 Gross Marin plus payroll costs over payroll costs i.e. measures value added by employees. “If both measures are improvements then we have a true productivity improvement,” Bruce says. Improvements in productivity are achieved through the development of a business model and new designs released each year. Innovation and design (including design in the cluster supply chain) are key goals. According to Bruce, implementing these designs quickly and cost efficiently is critical to sustaining the manufacturing business and competing against Asian imports. “Although it takes a great effort to invest in this new release at first, it gets easier once you have the experience.” The model is also transferable to nearly all other manufacturers in any industry where design is important.

Bruce Loxton (right) receiving the Education & Training Award from sponsor Australian Business Lawyers’ John Stanton.

Closely screen employees The company’s biggest hurdle is sourcing potential employees who have satisfactory skills. Before a candidate is selected they must pass a preliminary screen. Successful candidates are then screened at the end of the day, week and month. Thereafter, they can commit to a specific training program. “We employ a greater percentage of younger people who have limited skills. We employ both men and women and our policy is that our employee profile should mirror the availability of people in the community.” While the company has a good retention of long term employees, the same cannot be said for its short term workers where there is a high turnover of individuals with less than three months’ tenure. The lure, says Bruce, are the attractive pays across the border in the mining and construction industries.

What did the judges say? “Ballina-based Kimberley Kampers manufactures off-road campers and caravans. The company has a comprehensive and integrated training system embedded in their corporate culture which rewarded them with the Excellence in Training & Education Award and the stand out choice for the President’s Prize. Employees are provided with incentives to excel in the workplace which has led to significant improvements in productivity. Eighty percent of the workforce are currently undertaking training programs which shows, that even with the tough times, the company is committed to its people and culture.”

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What makes a winning business? – a business story

Jon Collins receiving the Excellence in Export Award from Austrade sponsor Munish Sharma

Sykes, winner of the Excellence in Exporting Award, is one of the largest auto prime pump manufacturers for the mining and construction industries in the world. They design and manufacturer their range of pumps in Newcastle. Established in 1967, the company employs 98 people and last year had a turnover of $37 million. In the past two years the company has doubled its exports.

Syked up! by Ron Krueger

As an indication of how in touch Sykes is with its export market, two out of five managers are located overseas and the company’s Board regularly travel to export countries to support and assist staff. The company continues to expand with employees operating in Hong Kong, China, the United Kingdom, USA, Africa, Thailand, Indonesia, India, and New Zealand. Furthermore, it is expanding its manufacturing capabilities by a staggering 35 percent which will create an additional 15 percent employment in the region. This is one company that has defied all odds and proved that Australian manufacturing is alive and well – at least in Cardiff. It is achieving its export success through: >> Competitive pricing by conducting market research to identify opportunities including ceiling and floor price options to determine how the high quality Sykes product range can compete.

>> Partnering with reliable and reputable distributors who have high financial integrity, established contacts and high quality products themselves. >> Offering innovative, feature packed products that other competitors are unable to offer including fuel efficiency, high shaft stiffness ratios, custom-built specifications and low cost of ownership. >> Providing a Sykes sales rep on site for dedicated support providing local product expertise for both the distributor and end user. >> Focus on reduced cost of ownership –including strategies to sustain and expand exports “You can only continue to expand your exporting if you remain competitively priced,” said Sykes CEO Jon Collins. “We invest time and resources in ensuring our procurement of parts is globally competitive while maintaining our high level of quality.”


What makes a winning business? – a business story

To allow for Australia’s remoteness to many markets, the company arranges financing for off shore stock holdings to increase both timeliness and efficiency. They also arrange sales and technical visits to ensure a high level of product support and expertise.

Marketing and branding awareness Marketing is integral to any company’s success. Company sales are expected to increase by 20 percent in 2009 as they develop specific market export strategies to reach out to China, Hong Kong, the United Kingdom, Thailand, South Africa and the United Arab Emirates. They are highly visible through their involvement in overseas exhibitions and trade fairs. Their website offers both organisational and regional content that shows customers the who, what, where, when and why of Sykes in a navigable and informative way. Apart from the regularly updated website, they further build their relationships with customers with email newsletters and a quarterly publication entitled SykedUp.

They are conscious that branding, particularly overseas, is important hence the attendance at trade fairs, the implementation of site service contracts, the installation and commission of equipment, and the technical training of staff in operation and maintenance. There’s also a philanthropic side to Sykes as the company invests in these local communities through various charities and sponsorships.

Partnerships ensure growth Over half of the company’s revenue is export related some of which is reinvested in plant and equipment. As a result it has doubled its number of staff and sustained a high level of staff retention. “Our partnership with the Export Finance Insurance Corporation (EFIC) gives us the opportunity to expand our financing arrangements to continue export growth,” said Jon. “The company is also ISO 9001 certified which means that our export customers can be confident in that all products undergo rigorous review and testing.” A management review conducted last year is streamlining their reporting system to create clear lines of communications with their new markets.

“The future of Sykes Group looks promising and with our high quality and innovative product range, along with enthusiastic and skilled staff, we believe we have a great chance for success!”

How does Sykes compete? >> Company Reputation and Brand – in business for over 40 years, the company has formed a sturdy and positive reputation for its products. >> Research and Development ensures that the R&D team delivers products at the cutting edge and customized solutions to meet customers’ specific needs. >> Product Range is market leading as our durable and long-lasting pumps can be used on a variety of unforgiving applications and often in harsh conditions. Such high quality products often exceed customer expectations. For example, the Olympic Pump ensures less fuel to perform. >> ISO 9001 certification guarantees that the company’s quality assurance and management systems are of the highest level ensuring that its reputation both locally and globally.

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What did the judges say? “Sykes derives its competitive advantage through its innovative products, commitment to quality and dedication to customer service. The company uses a number of marketing techniques to grow its customer base, with an emphasis on choosing the right people overseas (representatives and distributors) and giving back to the communities in which they work. Through its product innovation, it has, despite the high dollar, achieved excellent export growth while continuing to manufacture in Australia. It recognises that exporting is its future and commitment to developing international markets. It is achieving this by continually reinvesting in plant, equipment and people to build capacity.”


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What makes a winning business? – a business story

Tomago Aluminium’s Scott Orpin receiving the Excellence in OH&S Award from the CEO of WorkCover NSW Mr Jon Blackwell.

Proactive  safety by Ron Krueger

Newcastle-based Tomago Aluminium, winner of the Excellence in Occupational Health & Safety Award, employs approximately 1200 employees and has an annual production of 525,000 tonnes of metal. The company is one of the largest aluminium smelters in Australasia.

Tomago Aluminium’s commitment and dedication to safety management has delivered the company almost four million hours lost time injury free, a swag of safety awards, and recognition as a benchmark to the rest of the industry.

The company is vigilant and aware of the continuing need to change those behaviours that create risks and hazards and/or compel individuals to become complacent.

“As a result, we have reduced our workers’ compensation premiums to an all time low,” said Safety Leader, Operations & Maintenance, Lawrence Williams.

In addressing this Tomago Aluminium has implemented a systematic Health and Safety Management System (EHS) to deliver a step change improvement as well as sustain and improve health and safety performance. It is achieving this by:

“Much more than this though,” said Lawrence, “we have seen a genuine change in the understanding and commitment of all employees and contractors on our site when it comes to the value of safety and how seriously we address this issue.

Determined and disciplined

>> fostering and developing an EHS Leadership in Action Roadmap that applies systems tools and line management

leadership accountability; generates employee engagement in workplace safety to reduce the number and severity of workplace injuries and illness. The Roadmap focuses on: the Conduct of Hazard Control Checks; Rituals and Coaching; Observation and intervention on major risks; and Communication. >> conducting regular safety walks across the site by supervisors and managers to talk to employees and gather information that can be analysed to identify and improve safety processes in relation to risks and hazards. >> implementing drug and alcohol testing as the first part of its Fitness for Work Program – to


What makes a winning business? – a business story

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What did the judges say? address workplace safety issues such as fatigue management and health and well-being. Updates are provided through safety meetings, internal written communication and employee communication sessions. >> using continuous improvement tools including the implementation of five safety kaizens such as hazardous energy control, contractor management, pedestrian and mobile equipment, hand and finger injuries and working at heights. >> conducting internal safety system and compliance audits (including third party audits) to determine conformance to the Tomago OHS Management System, to verify if the system is implemented, well maintained and effective and to identify areas for improvement. >> establishing a five year EHS plan to identify key actions with realistic and achievable targets and objectives, using a 5-year moving window approach. At completion of one year another is added. The new plan introduces leading performance indicators to give safety a higher profile status in the company

>> ensuring that annual OH&S objectives and action plans are set at the plant level and cascade through to individual business unit levels. These objectives are endorsed by senior management, reviewed quarterly, and communicated to staff directly as well as on the intranet. “The company has a structured management review process that commits senior management to review the OH&S Management System, assess its effectiveness, suitability and adequacy,” Lawrence said. “The EHS Steering Committee consisting of senior management representatives provides a corporate platform for EHS decision-making, planning and strategy.”

What else do we do? >> Daily use of a robust and effective risk analysis grid to evaluate the level of risks involved in any kind of situation. >> ‘’Silver Ingot Awards’ – an improved performance based recognition program, featuring monthly business unit awards recognising exceptional performance by employees.

>> commitment to improve plant, machinery and equipment by hazard elimination through design and engineering modification. >> Mobile Equipment and Pedestrian Separation Program >> Major review of Lockout and Isolation Management to eliminate significant hazards related to Hazardous Energy Control. >> Development of a “Front Line Leadership Club” meeting (with all “line” leaders) bringing people’s ideas and experience together to drive safety improvement through the line organisation. >> Implementation of safety audits and hazard specific protocols to measure the degree of compliance and focus corrective actions on specific safety hazards. >> Communication tools developed to support improved safety culture with more emphasis on positive results and leading by example. >> Improved ability to analyse and present information related to Safety, Health and Hygiene monitoring.

“Tomago demonstrates the importance of significant investment in Occupational Health & Safety. The company has had its fair share of safety issues in the past. It’s proactive implementation of innovative and effective OH&S strategies and systems combined with its determination to improve in the OH&S area has been evidenced in their strong performance in recent years.”


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What makes a winning business? – a business story

Western Sydney business, Markitforce, winner of the Excellence in Business Innovation Award, provides 3rd Party Logistics services to companies looking to outsource their warehousing & fulfilment requirements. The business operates in five states throughout Australia and in Auckland and offers a unique e-logistics platform to its growing number of clients from multi nationals to start up and growing on-line businesses.

by Ron Krueger

Rawson Graphics sponsor Lachlan Finch presenting the Excellence in Business Innovation award to Markitforce’s Alan Higgins.

Leading    the pack The logistics industry has moved quickly beyond providing basic warehousing and transport services over the past decade. Markitforce, armed with fresh ideas and a clever approach, partnered with a local Australian software company, Advanta Software, to develop a unique e-logistics platform. Advanta’s ATLAS software suite is the result of many years of customer and market-driven development rather than of a breakthrough idea, said Markitforce’s Alan Higgins. “Most leading business solutions that stand the test of time are developed and refined over a period of time and with some guidance from customers with vision and patience.” The partnership provides an end-

to-end service to corporate and government clients to improve their campaign executions. Clients include Lion-Nathan, Sony, Unilever, Kellogg, Colgate and Subaru: and a wide range of SME’s looking for an effective outsourcing solution.

to cope with seasonal peaks and troughs in their business. Ultimately we want to offer our SME clients with an “e-logistics operation in a box” inclusive of a fully functional web shop that we can rebrand and modify to suit their business.”

“We realised the importance of teaming up with a local technology partner which had both the will and the capacity to improve product in collaboration with a customer leading the pack in his market,” said Alan.

Apart from order processing and fulfilment, the company plays an active role in campaign execution, working directly with the clients’ campaign teams, advertising partners, website designers and retailers participating in complex distribution requirements.

“We work very closely with our clients and in effect become their logistics department allowing them to concentrate on their marketing and sales campaigns without the distractions or limitations of the intricate logistics required to support them. Clients no longer have to worry about issues such as fixed overheads, warehouse capacity, and the labour resources required

“We needed to provide our clients with valuable market insights of demand and penetration in specific areas. We also needed a seamless, easy-to-use on-line ordering, stock control and catalogue system, where users can view products, place orders or track orders with real-time accuracy.”


What makes a winning business? – a business story

Clear vision and market position What differentiates Markitforce in this crowded market is its clearly defined vision and market position. “We understood the role advanced technology could play in making e-logistics work, both in terms of operational flexibility and in offering clients more sophisticated services. “These days, innovation is rarely the result of a single inventor coming up with a breakthrough in his laboratory.” Innovation, Alan believes, is achievable with leaders from diverse backgrounds bringing their unique expertise and experience to the table. “There is a difference between collaboration agreements that temporarily boost the stock market value of larger companies, and the gritty long-term collaboration that results in genuine innovation and improved services to business.” Alan’s view is that Markitforce and Advanta have set a clear example to other Australian companies. “Their success is due to a tight focus on a single market, a long-term commitment to serving that market, working

closely with leaders in their fields and maintaining the agility to respond to rapid changes and new opportunities.” As a result the company has recently expanded its operations into New Zealand and is looking forward to other opportunities in Asia and India.

Agile and flexible Clients can rebrand and customise the service for their own customers. For example, they can request a colour product catalogue, complete with images, that is automatically emailed to the recipient. Markitforce can even produce client branded tax invoices and delivery advices on behalf of its clients which can be emailed to their customers at the time of despatch alerting them that an order has been shipped. Unlike printed catalogues, the online version is always up-todate and can be customized for relevant product groups only. Such, and other innovations that have resulted from its collaboration with Advanta, have allowed Markitforce to offer logistics support for sophisticated client campaigns.

17

What did the judges say? The success of Lion-Nathan’s XXXX GOLD Beach Cricket promotion demonstrates how an effective partnership of agile supply chain logistics and flexible, scalable IT platform can deliver the most complex and ambitious marketing campaigns. According to Alan, the logistics behind the event was extremely demanding due to the momentum generated by Lion-Nathan’s multimedia marketing campaign. “The order rate for merchandise, which had to be personalised and assembled prior to shipment by Markitforce, rose rapidly during November and reached a sharp peak before Christmas.” Rapid response and operational flexibility were key factors in Lion-Nathan’s decision to engage Markitforce. “In fact, Lion-Nathan is on record stating that Markitforce was the only company they could find to effectively execute the XXXX GOLD Beach Cricket promotion which involved the personalising and fulfilment of some 65,000 consumer claims.”

“A logistics company, Markitforce’s innovation lies in its business capabilities and its imagination to meet its customers’ needs. It achieves this through a combination of years of market and customer– driven development, local partnering with an advanced technology company (Advanta Software) and exceptional customer relationship management skills. They are a great example of innovation in modern knowledge-based services economies, where innovation is in transforming business capabilities and customer service and not in the invention of a high tech new generation product, as it was in the industrial age. Innovation is transformation, not technology.”


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22

What makes a winning business? – Tips

Lead your business        out of danger Clearly, tougher economic times are bearing down on Australian businesses. Organisational psychologist Tony Vickers examines whether retrenching employees is best for a business. Historically, a popular solution to surviving down turn has been to ‘downsize’ – the practice of retrenching employees. We have seen this occur in the retail, finance and mining sectors. Business owners need to ask: is this best for their business? There is evidence to show that ongoing businesses that shed staff fare worse than those which do not. The reason is due not only to the direct financial costs of downsizing, but to the damage staff cuts have on workforce productivity and business reputation – damage which is often underestimated. Work is clearly a very important part of a person’s life. There is considerable trauma associated with losing your job, often lowering confidence and self-esteem, sometimes leading to depression, and sometimes to suicide. The costs to families and community are obvious. What is less obvious is the effect this has on the morale of those who do not lose their job.

Survivor Syndrome – who’s next? The toll on survivors is so horrendous it now has its own clinical nomenclature – Survivor Syndrome with symptoms including increased fear, reduced trust, increased stress, lower commitment, increased absenteeism and turnover, decreased loyalty, reduced expectations regarding future prospects, and lower morale. These symptoms can shatter the ‘spirit’ of a workforce and affect its productivity – exactly the opposite of what is needed by business to ride through tougher times. Today, two fundamental structural changes have occurred in Australia that business leaders should be aware of before deciding to reduce staff. 1 The first is that Australia’s natural demographic trend is causing a labour supply gap. Staff shortages are increasing, with some employers launching special efforts to attract more

candidates such as building a reputation as an “employer of choice”. Staff cuts erode employer reputation marking it harder to attract and retain labour. 2 The second relates to the momentous shift in Australian Industry to a servicesdominated labour market. Beware. High productivity in service jobs relies on employee “willingness” to do more than just the basics. Service workers choose how hard they work, with some research showing employees can operate at 30 percent of effort without getting fired. Commitment is what motivates extra effort. The Corporate Leadership Council notes that moving employees from ‘strong non-commitment’ to ‘strong commitment’ can result in a 57 percent increase in effort. Staff cuts erode employee willingness, commitment and effort, which wreaks instant damage to business productivity.


What makes a winning business? – Tips

Is your employee your most valuable asset?

Staff cuts will not fix faulty strategy

Why are some of today’s executives adopting an archaic strategy in light of this evidence?

The first line of attack when facing a down turn is to stimulate growth, to inspire new business generating ideas to emerge. This requires leadership with vision and a new positive growth vision for the business.

Clues were apparent a decade ago when the Australian Government’s Karpin inquiry found that Australia was at risk of economic decline because of inept business, especially management and leadership. Is it a case that too little has changed since 1995? The response of leaders to the current business down turn perhaps reveals their leadership competence. Do business owners view staff as a cost to be unremorsefully cut when times get bit tough? Or do they genuinely view employees as their “most valuable asset”? There are positive strategies business leaders can take to recession-proof their business. However, it takes positive leadership, courage and a different attitude towards employees.

>> Engage with your employees like you’ve never done before. Seek their ideas on how to grow the business and how to implement that vision. Get them positively focused on creating a new future. Create an environment in which their creativity can flourish. >> Review your management practices: Research shows that introducing high performance management practices will deliver substantial productivity benefits – in the order of 40 percent improvement.

>> Seed positive employee attitudes such as optimism, confidence, happiness, and hope, which are known to grow high performance levels. The leadership attitude needed here is very different. It’s positive, it’s inspiring, it’s encouraging. Encourage high performance, rather than whip poor performance.

Think carefully before choosing to cut staff The impacts are often devastating to individuals, and do not provide the commercial benefits expected. There are positive alternatives. To recession proof your business, you need to win the hearts and minds of your “most valuable asset”. The reward is that you can create sustainable, even transformational, improvements that will recession proof your business. Now is the time to lead your business out of danger.

23

When overseeing 5,000 retrenchments in the 1990’s, Tony observed a doubleedge sword: not only were individuals and family’s lives wrecked; businesses that retrenched didn’t achieve their desired financial outcomes as a result of these actions. He supports his views with some well backed empirical research. He states that lower expense ratios, higher profits, increased return-oninvestment, boosted share prices, and lower overheads did not materialise. In some cases, he found that business costs increased. One particular study of over 1,000 businesses that downsized during the 1990s found more than half did not cut expenses, two-thirds – increased profit, and more than three-quarters – increased productivity.


24

What makes a winning business? – Tips

Benchmarking *

your business *This is an excerpt from ‘Bright Ideas for Small Businesses – how to get your Cash Flowing efficiently’ by NSW Business senior business writer, Charisse Gray.

Benchmarking takes financial figures and converts them into ratios, which allows you to compare your results to those of your competitors. These figures are usually expressed as a percentage of sales or profits, before abnormal items are taken into account. A detailed benchmarking analysis can provide you with financial details and ratios that can relate to administration, physical office or warehouse space and costs, staffing, your products and services through to how much of the budget is spent on advertising and marketing.

What is the difference between gross profit and margin? Margin is measured as ratio, profit as a dollar amount. In both cases, they measure the difference between cost of materials and

revenue. Gross margin/profit do not consider the cost of doing business (i.e. payroll, taxes, etc). In retail, margin represents the mark up from wholesale.

turning over a lot of money — but, in fact, running at a loss. This is where a simple calculation, the break-even point, is used to find where profit really starts.

What is the difference between mark up and margin?

What is break-even analysis?

Mark up is the difference between the cost of goods and what you are asking to sell the goods for. Margin is the difference between the cost of goods and what you actually sell it for.

What is the break-even point? The break-even point is where profit starts. Every business needs to know how many sales have to be made before all the expenses are covered and actual profit begins. Your business could be

To find the break-even point a calculation called the breakeven analysis is used. This is just an estimate, because in reality calculating an exact breakeven point is complicated.

How to calculate the break-even point To do the calculation, we’ll use three figures from an average month’s sales, extracted from the twelve-month statements of profit and loss, and cash flow. The following table defines the terms using a coffee shop as an example.

Table 1: Three figures used to calculate the break-even, with examples from a coffee shop. Description of terms used to calculate break-even

Example: coffee shop

Average total revenue per unit: This is the price you charge the customer for each sale (or hour of service for a service provider) before you deduct any of your costs to produce it.

Our shop sells coffee at 3.00 each

Average per unit cost: what it costs to make each unit (a unit can also be an hour of service) once the business is set up and ready to produce and sell it. The per unit cost includes the materials and direct labour costs. The cost doesn’t consider complicating factors such as savings made from buying materials in bulk.

The cost of materials and basic labour for each coffee is $2.00 each.

An average month’s fixed running costs: the costs for an average month for lighting, insurance, wages, office stationery, rent, interest payments. These are basic running costs you have to pay in an average month to be able to start producing and selling the very first item of anything.

We spend $5,000 a month to run a shop and lease the equipment.

The formula is: break-even point (number of units to sell) =

Example using the figures from the coffee shop: $5,000 average month’s fixed running costs $3 average revenue per unit $2 average per unit cost B/E = $5000 $3 - $2

Average month’s fixed costs (Unit selling price – cost to produce)

= $5000 $1 = 5000 units


What makes a winning business? – Tips

25

Factors that affect cash flow Stock control

Finance

Management

Planning

INCORRECT STOCK Have you got the right products?

CASH LEVELS Do you have enough finance/cash?

PAYMENTS Are you being paid the correct amount?

FORECASTING Have you correctly forecast for seasonal or financial changes?

STOCK LEVELS Do you review your stock levels and stock turnover?

DEBT CONTROL Do you have a plan and systems for debt control?

TAX PAYMENTS Do manage your tax payments?

PRODUCT/SERVICE REVIEW Do you frequently review your products/service to ensure good turnover with maximum return?

WAREHOUSING Are you paying for storage space that is not needed?

CREDIT CONTROL Are you paying fines or penalties for late payments?

SYSTEMS Do you have an adequate accounting system?

DEVELOPMENT Do you investigate developing better systems or products?

DELIVERY Do you review the method and cost of the delivery of your product/service?

LIABILITIES How can you limit your exposure to your liabilities?

REVIEWING How often do you review your cash flow?

MARKETING What return on investment do you get with your marketing?

Risk Management – Litigation – IP

BUDGETING How often do you review your budgets?

SHRINKAGE How much are you losing through shrinkage?

Employers – Retention – Wages cycles – Correct Awards – Deductions – Statutory Remittances

BUSINESS PLAN When was the last time you read or updated your business plan?


26

News and views

Central Coast   businesses shine A well known local and international photographer, a Central Coast construction company, and a major annual event were the worthy recipients of Australia Day Awards last month. Gosford City resident and NSW Business Chamber member Ken Duncan received the city’s highest civic award, the Gosford City’s Citizen of the Year. He was also a recipient of an OAM in the Queen’s Honours List.

1

Ken’s award was about celebrating the contributions he has given to his art and the local community. He effectively put the Central Coast artistically on the map in 1993 when he published From Forest to Sea, a collection of images exclusively shot on the Central Coast.

2

3 1 2009 Gosford City Citizen of the Year – Ken Duncan, with wife Pam and daughter Jessica 2 Winner of the Community Event category – The Brisbane Water Oyster Festival, represented by Sue Fowler 3 Winner of the Business category – Sharpe Bros [Michael and Richard Sharpe]

His newly opened gallery at Erina Heights has also become a major tourist icon for the Central Coast, attracting visitors from all corners of the globe to the region, helping to stimulate the local economy and create jobs. Ken ensures that he gives back to the community in many ways with his diligent work with up and coming photographers to his support of Indigenous Australians and children who are disadvantaged. He is also an ongoing supporter of World Vision with profits from the sales of his Giant Panographs donated to World Vision, generating awareness for Indigenous Help Projects. In the business arena, NSW Business Chamber member, the Sharpe Bros (who featured as a business profile in the February/ March 2008 edition of Business

Connect magazine) were awarded for their involvement with local community charities and chambers of commerce across the Central Coast as well as their use of environmentally beneficial technologies which has lead to the employment of local people. The Brisbane Water Oyster Festival, a member of the Peninsular Chamber of Commerce (an affiliate of NSW Business Chamber) received the Community Event award. In its ninth year of operation the festival attracts thousands of families, businesses and local charities with its organisation of the Oyster Queen entries and coordination of the fundraising and the Oyster Ball. The event not only raises funds for the Cancer Council, it also injects money into the local community. NSW Business Chamber’s, regional manager for the Central Coast, Mary Doherty said the awards were a celebration of the achievements of local residents, business owners and organisations. “Given the tough times many people are experiencing it’s great to see individuals and groups knuckle down and getting on with sustaining their business growth, and generating incomes, wealth and more importantly jobs. “Many of these business owners are also giving back into the community. “The Central Coast is a beacon to other regions within NSW and I congratulate all the nominees and winners in this year’s Australia Day awards.”


News and views

Kevin Macdonald (Managing Director, NSW Business Chamber), John Pearson (Regional Manager, Western Sydney), Adrienne Pearson (Ronald MacDonald House) and Ian Penfold (President, NSW Business Chamber).

David Breen (ING Direct) and Craig Carlyon (HR Triple S)

Matthew Tyrell (ANZ) and Michael Bucknell (ADZE)

Mike Baird    visits    Chamber

Peter Read (Read Consulting), Julie Farquhar (President, Sydney South), and David Yeates (Regional Manager, Sydney North and South)

David Cleary (ANZ), Maris Derums (Sydney South councillor), and David Malloch (Malloch Pty Ltd)

In December 2008, NSW Business Chamber hosted the ANZ sponsored ‘Mike Baird Lunch’ with money raised donated to Ronald MacDonald House. The local Liberal member for Manly, Mike Baird, talked to the business audience about the impacts of the mini budget while gently sledging the Labor party, something Mr Baird said he was more comfortable doing on the cricket field as opposed to the politicians’ bear pit. Mr Baird stressed that in these volatile times having a vision and a benchmark were important traits for any business wanting to ride the choppy economic waters. He left the audience with five goals that the Liberal party in NSW are hoping to achieve come election time in 2011: 1 NSW to lead the country on sustainable economic growth 2 NSW to become Australia’s 21st century state that looks globally 3 NSW to become Australia’s first place to do business 4 NSW to become the state of opportunity based on an injection of funds into well needed infrastructure 5 That cabinet ministers conduct independent costings and are accountable for all projects. “We need to make NSW the envy not only of Australia, but the Asia Pacific,” he said.

Ian Penfold, Mike Baird, and Garry Pearce (President, Sydney North)

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28

News and views

Judging panel Phil Butt, Julie Farquhar, and Brad Awerbuch presenting the prizes to Charlotte Hicks (winner), and runner up Philippa Waters.

Dreams to reality Twenty three year old local fashion designer Charlotte Hicks was awarded the NSW Business Chamber’s 2008 Textile, Clothing, Footwear and Leather Industry Award. The Award is sponsored by NSW’s leading business organisation, NSW Business Chamber in conjunction with the Facility of Design, Architecture and Building from the University of Technology, Sydney (UTS). The Award is open to final year students completing their Degree in Textiles, Fashion and Design who undertake the business planning course. In a very tight fought competition, Charlotte won the Award with her innovative business plan for her fashion label, “Char Hicks”. “It was a very tough decision to choose a winner from what was a very talented group of designers who entered this year’s competition,” said Phil Butt, managing director of Sandler Shoes and member of the judging panel. “Every year the judging panel is confronted with the difficult

challenge of selecting one winner but Charlotte’s fantastic presentation and fashion designs stood out from the competition. “It is wonderful that this industry continues to attract some very talented young professionals with entrepreneurial skills and ability to develop fashion design businesses.” Charlotte received a $10,000 prize make up of cash and inkind support from NSW Business Chamber, including advice on how to establish and run a successful business and export market development assistance on how to get their fashion labels into overseas stores. Runner-up, Philippa Waters received a prize of $1000 cash contributed from the three judges, Phil Butt, Julie Farquhar and Brad Awerbuch and a membership of the NSW Business Chamber. “I am very excited and privileged to win this Award,” said Charlotte. “Being able to get this support from NSW Business Chamber and industry experts in the early days of creating a business is

“ Being able to get this support from NSW Business Chamber and industry experts in the early days of creating a business is a tremendous opportunity.” – Charlotte Hicks a tremendous opportunity.” “I have always loved fashion and clothing since I was young. This Award will allow me to turn my dream of having my own label into a reality.” NSW Business Chamber is one of the largest NSW representative bodies of businesses in the Textile, Clothing and Footwear and Leather (TCF&L) industry.

Becky Cooper and Bridgette Currer, have been very successful in establishing their own fashion label and business, bec & bridge, which can now be purchased in major retail stores such as David Jones. 2006 winner, Donna Sgro has just broken into the extremely difficult and competitive Japanese market by winning the SHINMAI Creator’s Project.

“We established this Award to help students understand what is required to run a successful start-up business and give them the encouragement to develop skills in order to run their own business,” said Mr Butt said.

NSW Business Chamber members in the TCF&L industry are also acting as mentors and guest lecturers for students in their final year. It is vitally important in a time of skills shortage that students gain education and training in all areas of business.

Charlotte follows in the footsteps of previous winners who have gone on to achieve great success in the fashion industry.

Charlotte’s designs were shown to industry leaders and fashion buyers during UTS’ Annual Fashion Show in December 2008.

2003 winners of the TCF&L Award,


News and views

wins major

Chamber member

innovation award

NSW Business Chamber member, The RedBalloon Group won the Nokia award for innovation for GoDo.com.au. CEO Naomi Simson said the technology platform provides thousands of activity suppliers with the opportunity to publish their availability in real time. Naomi Simson, national winner of the Nokia Business Innovation Award

In December last year, 34 elite business women competed for national acclaim at the National Telstra Business Womens Awards in Melbourne. The awards acknowledge women in five categories: The Business Owner, Private and Corporate Sector, Community and Government, Innovation and Young Business Women category. This year 4000 women from across Australia entered into The Telstra Business Womens Awards.

“GoDo does for activities what Wotif did for hotel rooms: instant global visibility via 80 or more tourism distribution partners such as Virgin Blue, Webjet and Lonely Planet,” she said. Since 1995 these prestigious awards have acknowledged the contribution of Australian women to the business community. The awards reinforce that women are also capable of making a difference to the economy and leaders can make this happen. Naomi said: “We all need role models. We need leaders who are positive and disciplined. We need people who see possibility and work really, really hard to get things done. Out of this current tough time new great stories will be created.”

Naomi and her team have made a difference to businesses throughout Australia and New Zealand. In 2001 she established her first online venture, RedBalloon which delivered 300 experience gifts. In 2008 she delivered 175,0000 gifts. The company has provided more than 1400 corporations such as Qantas, PricewaterhouseCoopers, Westpac, Network Ten and BankWest with ways to reward, recognise and motivate their employees through their offering of 2000 experiences from sword fighting lessons, husky dog sledding, helicopter flights to cooking classes. In 2004 Naomi and her team established Godo.com.au which has taken more than 900 Australian and New Zealand SME’s to marketplace that would otherwise have little or no Internet presence.

29


30

Ask an Expert

Public

holidays 2009

Ask an Expert welcomes questions relating to marketing, exporting, employment law, workplace relations (awards, leave provisions, and superannuation), workers’ compensation, the skills shortage, and occupational health and safety. Please send your question to ron. krueger@nswbc.com.au.

What are the public holidays for all states and territories throughout Australia and what are an employee’s entitlements to a public holiday dependent upon? These days may be subject to change by proclamation or gazettal by the relevant state or territory government. An employee’s entitlement to a public holiday is dependent on a number of different factors. The Anzac Day public holiday (25 April) may be subject to change because this year it falls on a Saturday although, traditionally, most governments

have not normally proclaimed another day (say the following Monday) in this circumstance. Conversely, Boxing Day this year falls on Saturday, 26 December, however, the following Monday (28 December) is expected to be proclaimed by each state and territory government either in lieu or in addition to the Saturday.

Public holidays Set-out below is the list of anticipated public holidays expected to be proclaimed by the relevant state or territory government for the whole of that

state and territory for 2009. (It is common for local or regional public holidays to also be proclaimed by the relevant state or territory government or by the applicable industrial instrument. Reference should be made to the relevant state or territory government website to determine the date of observance of a local or regional public holiday. The relevant state or territory government website which provides updated information on the relevant state/territorywide public holidays and regional holidays has been included.)


Ask an Expert

National holidays New Year’s Day — Thursday, 1 January Australia Day — Monday, 26 January Good Friday — Friday, 10 April Easter Saturday (except WA & Tas) — Saturday, 11 April Easter Monday — Monday, 13 April Anzac Day (except ACT) — Saturday, 25 April

Source of entitlement to a public holiday The following sources should be taken into account by an employer when determining an employee’s entitlement to a public holiday within a state, territory or locality: >> WorkChoices specifies the following days as a public holidays when the holiday falls on a day on which the employee has ‘guaranteed hours’ of work: 1 January (New Year’s Day); 26 January (Australia Day); Good Friday; Easter Monday: 25 April (Anzac Day); 25 December (Christmas Day); 26 December (Boxing Day) and any other day declared as a holiday for the state or territory, or a region of a state or territory (except a day declared as a holiday in substitution for a named day or a union picnic day). >> a day prescribed by the applicable industrial instrument providing an additional holiday or holidays, eg an additional award holiday. >> the proclamation or gazettal of a holiday by the relevant state or territory government. >> a day prescribed by the relevant state or territory public holiday statute — a state or territory law relating to the observance of public holidays is not excluded by the Workplace Relations Act. >> the public holiday falls on a day the employee would normally have worked, or the applicable industrial instrument provides payment for a holiday that

falls on a shift worker’s nonrostered day or a day worker’s rostered day off (RDO). >> a casual employee is entitled to payment for a public holiday prescribed by the Workplace Relations Act where the casual employee’s ‘guaranteed hours’ fall on the holiday.

Local public holidays Employers often enquire regarding an employee’s entitlement to a public holiday that is only observed in a specified region or locality. Section 611(b) of the Workplace Relations Act refers to ‘any other day declared as by or under a law of a State or Territory to be observed generally within the State or Territory, or a region of a State or Territory, as a public holiday …’ This means that any day proclaimed or gazetted by a state or territory government for a specified region or locality is a public holiday for the purposes of the public holiday entitlement under the Workplace Relations Act. Most states and territories have public holiday laws that provide for the observance of regional or local public holidays, particularly in areas outside the major metropolitan cities. Reference should also be made to the relevant industrial instrument to determine an employee’s entitlement to any additional penalty payments for work performed on a ‘regional or local’ public holiday. The relevant state or territory government website should contain details of the local or regional public holidays observed in that jurisdiction. Source: WorkplaceInfo 2009.

Queen’s Birthday (except WA) — Monday, 8 June Christmas Day — Friday, 25 December Boxing Day (except NSW) — Monday, 28 December New South Wales

Western Australia

Labour Day — Monday, 5 October

Labour Day — Monday, 2 March

Boxing Day — Saturday, 26 December (possible additional holiday Monday, 28 December — to be advised)

Anzac Day (in addition to Saturday, 25 April) — Monday, 27 April

(refer to: www.industrialrelations. nsw.gov.au/holidays)

Queen’s Birthday — Monday, 28 September

Victoria

Boxing Day — Saturday, 26 December

Labour Day — Monday, 9 March Melbourne Cup Day (now statewide unless otherwise determined by a non-metro council) — Tuesday, 3 November Boxing Day (in addition to following Monday) — Saturday, 26 December (refer to www.business.vic. gov.au/BUSVIC/STANDARD) Queensland Labour Day — Monday, 4 May Royal Queensland Show (Brisbane area only) — Wednesday, 12 August

Foundation Day — Monday, 1 June

(refer to: www.docep.wa.gov. au/LabourRelations) Tasmania Eight Hours Day — Monday, 9 March Easter Tuesday — Tuesday, 14 April (refer to: www.wst.tas. gov.au/employment_info/ public_holidays/areas) Northern Territory May Day — Monday, 4 May Picnic Day — Monday, 3 August

(refer to: www.wageline.qld.gov. au/holidayslist/index.html)

(refer to: www.ocpe.nt.gov. au/legislation/holidays)

South Australia

Australian Capital Territory

Adelaide Cup Day — Monday, 9 March

Canberra Day — Monday, 9 March

Labour Day — Monday, 5 October

Labour Day — Monday, 5 October

Proclamation Day — Monday, 28 December

Family and Community Day — Tuesday, 3 November

(refer to: www.safework.sa.gov.au)

(refer to: www.det.act.gov.au)

Anzac Day — Monday, 27 April

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32

What makes a winning business? – Products

Program recognises

women in trade

NSW Women Going Global is giving Australian women a better chance in the exporting world

Bemoaning the fact that women in export were not being recognised and were under-represented in exporting, lead to the design of a unique program by two women with a wealth of experience and knowledge in the exporting arena. Julie Scott , executive director of the NSW Department of State and Regional Development’s (DSRD) Small Business and Development Division, and Christine GibbsStewart, general manager of Australian Business International Trade Services (ABITS) locked heads together after a 2007 delegation to the United Arab Emirates to create NSW Women Going Global – a program designed (and sponsored by CMC Markets Asia Pacific) to teach women how to strengthen their skills, opportunities and contacts overseas. “We needed a program that would resonate with women, that was different and that

was aimed squarely at women, and women only,” said Julie. Not that they intended to ostracise men: “one of our objectives was not to exclude the blokes,” Julie says emphatically. “In fact, since Chris and I developed the idea for a women’s mission we’ve garnered support from males in what is traditionally a male dominated industry.” While they both wanted to get the “equity balance” right, their main objective is to give women a better chance in the exporting world. “There’s a distinct lack of women at exporting events, industryrelated functions and awards ceremonies,” said Chris. “We also knew that there were many female exporters who were not being recognised for their contribution and achievement. They were also not taking on senior positions in companies that exported.”

Compared to other Australian States and Territories, the situation for female exporters in NSW, according to Julie, is going “backwards.” “ABS figures show that 12 percent of exporters in NSW are females. Almost one third of ABIT’s exporters comprise women. The downside is that recent statistics show that women in CEO positions and senior roles in NSW are declining.” Not to be dissuaded, the ‘exporting duo’ has a primary goal – to increase export sales for Australian businesses. With this in mind, they painstakingly planned and structured the first, of what is hoped will be an annual event for women who are intending to, or are currently exporting. The inaugural visit to Malaysia by 12 women representing 10 companies was a well deserved success.


What makes a winning business? – Products

What do you get? Before you commit build a relationship For Leigh Bryant a well seasoned exporter and business owner of 25 year old, Newcastle-based freight forwarding company, Scorpion Freight Pty Ltd, the mission to Malaysia was a valuable, and different experience. Her business takes her to some of the major ports in Asia. She’s also battled at a board room level with many men so the thought of participating in a ‘women only’ mission was met with anticipation and intrigue. “What distinguished this trip from other events,” Julie said, “was that I felt refreshed and invigorated.” Tongue in cheek, she says: “it may have had something to do with the lack of testosterone in the room.“ Leigh came to Malaysia armed with a contract and in search of a local agent to assist her growing cargo business in Kuala Lumpur. To her surprise she found the right person and, with a modification to the terms and agreement, walked a way with a signed contract for a sole agent. “It was critical for me to find an agent who had the strength of character and calibre to control the business on this end,” she said. Leigh, a regular visitor to Malaysia, sensed a greater willingness by the Malay women to communicate more openly to pursue business interests on this particular visit. “The Malay women I spoke to seemed unshackled and willing to embrace each and every business opportunity. Many of these individuals commanded senior roles in politics, government and business. “Of course, there was the usual manoeuvring and manipulating which you would expect at any of these events, however, the openness in communication

suggested they were keen to build relationships as opposed to the cut and thrust of closing a deal then and there.” Aside from the relaxed networking Leigh was impressed with the organisers’ detailed planning and execution. “It was an extraordinary experience and by far the best trade mission I’ve ever attended. “It also reinforced that if you really want to secure an export market you need to attend organised events. I would never have met all these individuals or indeed leveraged off their contacts, if I had decided to go it alone.”

Listening and learning from experienced exporters At the other end of the exporting experience spectrum is Samantha Davies, financial controller for Muru Mittigar, a not for profit organisation which provides employment and training opportunities for Aboriginal families in Western Sydney. It was Samantha’s first trade mission and an ideal opportunity to listen and learn from the experts. “I met some outstanding business women and gained a wealth of experience,” she said. “My personal development on the trip was magnanimous. The mentoring I received from Chris, Julie and Leigh was both faultless and fruitful. Other delegates also stepped up to mentor each other. Like Leigh, Samantha was impressed with the organisers’ attention to detail. “At the end of each day we had a debriefing session which allowed me to brainstorm my thoughts and ideas, talk about my own business issues, and network with like-minded people. We even got to relax and venture out into Kuala Lumpur and Penang for sightseeing and shopping.”

For Samantha it was an opportunity to show the Malays the uniqueness of Australian culture. She demonstrated a number of Aboriginal artefacts. She also established numerous contacts and since her return to Australia has been busy contacting prospective clients. She’s keen to also participate in future trade delegations. The trip to Malaysia, however, “will be a hard act to follow!”

Work, life and acting globally Getting the right mix of individuals and industry representation was the challenge. Having a small group presented unique opportunities for participants to share their own business experiences as well as mentor each other. Being part of an all female group also added a new and invigorating dimension. “DSRD operates 14 trade missions each year and often women feel excluded from many of these missions,” said Julie. Many of these women have both family and business commitments said Chris. “Juggling work and family life often constrains any notions of travelling overseas to pursue exports.” Before participants travelled they attended a series of workshops to sharpen their skills, to improve their understanding of that country’s culture, politics, social mores and ways of conducting business. They also addressed the important issue of work-life balance. “Having a peer group to support and encourage your efforts is extremely important, and that is what this program is all about,” said Chris. Another key feature of the program is on-line networking.

> Entry to all NSW Women Going Global workshops and events > Access to international trade experts > Exclusive entry to women networking groups focused on global growth > Online forums with other women exporters (including Facebook discussion forum) > Training and skills development > Mentoring and advice from those who have been there and done it > Regular news and information feeds for growth in international markets

For example, participants can have open discussions on a dedicated Facebook site. “It’s enabling them to become more online savvy,” said Chris. “They can access the network anytime, anywhere, and tap into valuable contacts and information. “They can also use the online tool to enhance customer service and open up new markets.” In the future Julie and Chris hope to have NSW Women Going Global as an annual event. They also want to extend their reach out into regional NSW with the establishment of a regional exporters’ forum. “The feed back to our inaugural mission has been positive. The workshops have revealed that women would like to participate in forums and that e-learning is a suitable platform to share information, advice and contacts,” said Julie. “We’ve also established that we need to focus on financial markets and services for exporting opportunities.” They are currently planning another mission for October 2009 aimed at the Asian market. For more information on the program click onto www.australianbusiness.com.au/wgg.

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