b innovative by Paul Oliver

4 Go faster stripes

17 Thetaâ&#x20AC;&#x2122;s A+ experience

26 From hum-drum to simply humming

28 China Business Leaders Forum

PRODUCTIVITY IS IT AUGUST/ September 2010

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Falcon XR6 Sedan offered on 45 month/55,000km non-maintained operating lease. Falcon XR6 Ute offered on 48 month/60,000km non-maintained operating lease. Business users only. Normal lending criteria apply. On road costs and GST not included in monthly payments. Ranger 4WD XLT Double Cab manual shown, drive away price includes 1,000km road user charges. Offers end June 30th, 2010. Falcon XR6 Ute shown with optional 18â&#x20AC;? alloy wheels.

Drop everything. The Ford field days sale is now on.

Drop everything. Get into your local Ford Dealer to check out the great deals across the most awarded range of vehicles in New Zealand. Be quick, the sale finishes on July 31st 2010. As an Alliance partner of the New Zealand Chambers of Commerce, Ford New Zealand offers exclusive discounts on the retail price of most new Ford vehicles. For more information visit your local Ford Dealership.

ford.co.nz

Drive one today.

CONTENTS

Is published by the Auckland Regional Chamber of Commerce

4 Publisher And Editorial Director

Michael Barnett Editor

Claire Del CREATIVE DIRECTOR/designer

Raymond Yeung Advertising

Sophie Curabet Contributors

10 26

Lynnaire Johnston Clare Coulson Grant Woolliams distribution

Auckland Chamber of Commerce Printing

Oliver Young For Content And Advertising enquiries

p. +64 9 309 6100 e. binnovative@chamber.co.nz

Auckland Chamber of Commerce PO Box 47, Shortland Street, Auckland 1140, New Zealand p. +64 9 309 6100 f. +64 9 309 0081 w. aucklandchamber.co.nz

One copy of b-Innovative is supplied free to each Auckland Regional Chamber of Commerce and Industry member company, with complimentary copies distributed to Chambers in other locations. Additional copies $5.00 + GST. All rights reserved. No part of this publication may be reproduced, stored in any retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or printing without the prior written permission of the publishers. ISSN 1171-7408 Disclaimer the views expressed by contributors are not necessarily the views of the Auckland Regional Chamber of Commerce and Industry. The Auckland Regional Chamber of Commerce and Industry was established in 1856. b-Innovative is the Chamberâ&#x20AC;&#x2122;s quarterly magazine and is direct-mailed and distributed free of charge to more than 12,000 members. The Auckland Chamber is one of the largest business sector organisations in Australasia.

FEATURES

b-Heard

6 10

Productivity 2.0

High value relationships

b-Fit

Rich media tools

REGULARS

Editorial

Economic update

35 Member gallery 36 Member ROI

Go faster stripes

15 Employment

successes

26 Vital Training b-Global

28 China Business

Leaders Forum

b-Connected

22 Upcoming events b-Ahead

37 Business savings

Time for Actions to do the Talking

We have talked for years about lifting productivity at all levels of business. We have talked for years about getting governments to encourage businesses to grow and increase productivity by giving business the tool box they need for getting on with doing what they are good at - business But talking about our business dreams doesn’t cut the mustard any more – it’s what we actually do that counts. Sitting back and talking and waiting for the government to improve its performance is equally counterproductive.

b-Innovative August/September 2010

Time and again I come across examples of businesses not prepared to wait for government who are getting on with lifting their own businesses productivity and getting improved results. While you sit and talk and wait others are getting on with it – and winning. It’s what we do each working day to take another determined step to fulfill our business dream that makes the difference. Even if the action is small it is a step forward. We may need many small steps to build a platform on which to launch a new product or to expand a service. Each of those steps is necessary and better than doing nothing or resting on our oars.

The reality is that if we do put in place an action – big or small – and measure the result and then grow the actions our firms will be the winners. In plain language increasing productivity is nothing more than the result of a business taking steps – small and sometimes big – to lift performance. Take a step – manage, measure and plan the next step… Take that next step, manage/ measure… Increasing productivity reflects your commitment to constantly improve what you do and how you do it – better, faster, step-by-step.

Editorial It’s not about Government any more – it’s about YOU, each and every business lifting our game… Michael Barnett, Auckland Chamber of Commerce

This issue of Innovative has an article from Finance Minister Bill English reinforcing that Government has signaled its support for encouraging every business to set itself on a path to grow – go faster – and sets out some of the tools businesses can take advantage of. But as I say it’s not about the Government. If Kiwi businesses are to successfully compete with those firms and countries we like to compare ourselves with, we need to take ownership for meeting the productivity challenge. We can have the best government policies for increasing productivity, we can have the best tool box for increasing productivity, but if we don’t have the

attitude and commitment to make it happen – it won’t. It is also great that this issue of Innovative features tech firms who can help you meet the productivity challenge. Make use of them! They have a major role to play but their story should be part of a wider story that brings investors, bankers and other businesses and agencies with money to invest in helping businesses – especially small-mediums with innovative ideas – to climb on to the pathway for lifting performance. Also as I say for most small and medium businesses, making progress will often be a series of small carefully managed

and measured affordable steps; of seeking out information and looking at ways to make better use of technology and the skills they already have in their business. Stop talking – do something, and do it now and tomorrow… step-by-step

Michael Barnett CHIEF EXECUTIVE Auckland Chamber of Commerce

August/September 2010 b-Innovative

stripes

Achieving faster economic growth – and particularly improving New Zealand’s productivity record of recent years – is at the heart of the John Key-led Government’s economic programme and is of prime importance to businesses.

Faster growth is the only way we can create the jobs, higher incomes and opportunities for New Zealand families and businesses to get ahead in this country. This Government has aspirations for New Zealand; we’re home to some of the smartest, most innovative people in the world, and we’re also a place where people are not afraid to give it a go. This nation and its inhabitants deserve to get ahead and be rewarded for their hard work. Yet, in the past few decades, we’ve fallen further and further behind the countries we like to compare ourselves with, such as our near neighbour, Australia. Our exports haven’t grown fast enough and we need to attract more companies to stay, invest and create jobs here. Between 1978 and 2009, for example, New Zealand’s economy-wide labour productivity growth averaged 1.3% a year. By comparison, Australia averaged 1.6% annual growth in the same period. What is more, New Zealand’s productivity growth has been from a lower base: by 2009 New Zealand’s

b-Innovative August/September 2010

labour productivity was about 30% below that of Australia. Doing many things well There is no single silver bullet that will turn things around – if there were, it would have been fired off many years ago. Instead, we need to do many things well to increase our economic growth and productivity. That’s why the Government has identified the following six economic policy drivers, which will remain the basis of its economic programme over the next few years: • Multi-billion dollar investment in productive infrastructure such as roads, ultra-fast broadband and electricity transmission. • Removing red tape and improving regulation, such as the Resource Management Act, the Food Act and the Building Act. • Supporting business innovation and trade, including an investment of more than $320 million over four years for research, science and technology provided for in the Budget. • Improving education and lifting skills through initiatives such as National Standards for literacy and numeracy.

• Lifting productivity and improving services in the public sector, recognising that most Government agencies will receive no new money over the next few years. • Strengthening the tax system – including the Budget’s substantial tax package of income tax and company tax cuts, and an increase in GST, to help tilt the economy towards savings, investment and exports, and away from borrowing, consumption and housing speculation. Rather than implement a one-off ‘big bang’ programme of policy changes, the Government is committed to making considered changes, year after year, that will increase New Zealand’s economic performance. The Productivity Commission One of the initiatives designed to lift productivity is a new Productivity Commission, which I announced earlier this year in conjunction with Regulatory Review Minister Rodney Hide. The Commission, which will have a wide-ranging brief and was part of the National-ACT confidence and supply agreement signed after the 2008 election, is modelled closely on the Australian Productivity Commission, which has operated for more than 10 years. The Government

intends to enact legislation setting up the Commission by the end of this year so it can be up and running by April 2011. It will be funded through contributions from reprioritising the existing budgets of 29 Government agencies. Wide-ranging functions The new Productivity Commission will be headed by up to four part-time commissioners and will provide independent advice on ways to improve productivity in areas identified by the Government. Its main functions will include: • Inquiries into productivity-related matters and reports back to ministers. • One-off reviews of existing regulations. • Reviews of the effectiveness of regulatory agencies. • Regulatory impact analysis of a small number of proposed new regulations. • Research into productivity-related issues. • Promoting public understanding of productivity issues.

given our strong commitment to creating a single economic market between the two countries. The independence of the Australian Productivity Commission has ensured that important public policy issues, which effect businesses and citizens alike, have been tackled in a non-political way. Examples of Australian Commission inquiries include energy efficiency and the economic impacts of migration and population growth. The Productivity Commission is one more step in the Government’s ongoing programme to lift New Zealand’s economic performance in both the public and private sectors. Over the next few years, our main challenge is to ensure that faster economic growth and higher productivity are based on private sector investment in exports and sustainable jobs, rather than the unsustainable increases in government spending and borrowing characteristic of the past decade.

Hon Bill English Finance Minister

It makes good sense for the New Zealand and Australian Commissions to co-operate,

August/September 2010 b-Innovative

Productivity by Lynnaire Johnston

2.0

Once, productivity was about how many widgets came off the production line. Today, productivity is different for every business.

Compare this with our trans-Tasman neighbours, where the increase in disposable income per person is twice ours. If we are to have any hope of catching up, we need to lift our productivity. And smartly.

He suggests reviewing your IT infrastructure and doing whatever it takes to create efficiencies and enhance productivity.

It might mean the speed at which you deal with incoming emails, or how many sales calls you can make in a given time, or how connected you are with your customers.

b-Innovative asked three business leaders for their ideas.

“For example, following our review of the Auckland Chamber of Commerce’s IT infrastructure, we recommended an upgrade to 24/7 IT support, put in place a comprehensive plan to improve overall network performance, implemented a new server environment and applied best practice across the network. We rolled out a comprehensive disaster recovery plan and backup service, and implemented a state of the art, secure content management system. This all resulted in a number of business benefits for the Chamber – including greater stability, reliability and security, but the most significant benefit was increased productivity.”

Change has been so extraordinarily rapid it is difficult for even the tech-savvy to keep up. Remember how letters were replaced by email? That’s been superceded by instant messaging. Remember how meetings took up valuable work time, especially when travel was involved? Now, meetings are held online.

Stability and security key A stable, secure IT infrastructure is a key element in increased business productivity. So says Ian Funnell, General Manager of CodeBlue, a leading provider of sophisticated, proactive monitoring and IT infrastructure services. He suggests that getting your IT in order will result in huge productivity gains.

We do a lot of things differently today, thanks to new technologies like virtualisation, cloud computing, electronic processing and online networking. These techniques will help New Zealand businesses lift their productivity levels because statistics show we lag well behind Australia.

“In our experience, there are three IT foundation stones that help increase business productivity. Most importantly, you need a stable, secure IT infrastructure. You also need to ensure your IT infrastructure is optimised so it works really hard. Thirdly, you can implement tools, systems, programs and applications designed to help optimise productivity.

In fact, we’re worse off now than during the Muldoon years. Then, productivity grew 1.4% each year. It continued to do so intermittently until 2000, but since then it’s been all downhill. The most recent figures (2006-2009) show a slide of -0.3%.

“IT infrastructure stability takes the hassle out of IT. You spend less time and money trying to resolve problems, freeing you up to focus on the things that really matter,” says Ian.

b-Innovative August/September 2010

There’s much else you can do to increase your IT operational efficiency, flexibility, responsiveness and longevity. One of these is IT virtualisation. A virtual environment helps

Feature

The advantages for even small businesses include automated backup and disaster recovery at a much lower cost than internal systems, variability of server capacity and near 100% server availability (if a server goes down, another automatically takes over without the user noticing any change). consolidate resources, and automate resource allocation, application deployment and server management. Ian says: “Today’s virtualisation solutions provide a high level of security and reliability, and make it much easier to provide an environment that is easier to deploy, manage and maintain. You’ll save time, boost productivity and save money over the longer term.” Computer downtime affects productivity. Server overloads can be solved by moving to cloud computing. If you use internet banking or such online accounting systems as Xero, you will be familiar with this. Applications such as accounting software, ERP systems, sales and service systems, CRMs and intranets are all candidates for application servers running in the cloud.

Tools, systems and programs Another area where productivity gains can be made is through the implementation of tools, systems, programs and applications suitable to the type of business you are running. The example with which most of us are familiar is Microsoft. The Windows 7 operating system and Microsoft Office 2010 are full of features and tools to help boost business productivity. In particular, there are features that integrate well with virtual environments and make collaboration much easier – no matter where you are. CodeBlue’s Ian says Office 2010 provides a consistent user experience across a single, practical collaboration platform from which to easily manage content, information and people. Users can view, share and work on documents simultaneously, no matter where they are, across PCs, mobile phones and the web. “The efficiencies of the Windows 7 operating system help boost business productivity and

deliver cost savings in three key ways: less time spent on support calls and resolving incidents; lower platform costs; and lower customer training costs thanks to the increased ease of use.”

Export documentation processing The Auckland Chamber of Commerce is a good example of using technology to improve productivity. It has developed a secure, automated system for processing export documentation – a world first. It processes thousands of documents annually for companies exporting their goods, for which they need proof of origin. In the past, these documents were mailed or couriered to the Chamber, manually processed by staff, and then mailed or couriered back again. Today, these documents can be processed electronically saving both time and money. The Chamber’s International Manager, Cameron Gordon, says the entire process of international transactions has sped up considerably in an industry that now expects fast turn-around times. Electronic processing ensures international shipments do not leave the country without correct documentation. But there are other advantages. “Operating electronically is cleaner and more environmentally friendly, and allows more streamlined record keeping. Plus there is less likelihood of documents going missing when they are emailed back to the exporter directly.”

August/September 2010 b-Innovative

Email replaced by IM Another company at the forefront of productivity gains is Hewlett Packard. A quick discussion with Marketing Manager, South Pacific, Warwick Grey is an eye-opening experience. For instance: are you using instant messaging instead of sending emails or making phone calls? If not, you’re not using technology to its best advantage. If you’re not holding meetings online instead of face-to-face, you’re wasting money on travel and staff time. If you’re not streaming major presentations live via the net and recording them for replay later – again via the web – you’re drastically reducing exposure to your product. And if you’re not monitoring what your customers are saying about you on the internet, you’re out of touch with them. Instant messaging, says Warwick, is an excellent way to save time and money. Office Communicator is the software program for this, with Outlook users easily able to see if the person they need to communicate with is online. If they are, a message can be sent or a phone call made, knowing the person is at their desk. The reduction in 'phone tag' or unanswered international calls is an obvious productivity winner. Businesses, believes Warwick, need to be aware of what’s going on around them, what their customers are saying about them, and what problems they might be having that the company can solve. Conversations have moved online, and companies need to follow in order to make the most of the opportunities this offers, including highly valuable referral marketing. But that, it must be said, is a discussion for another article.

b-Innovative August/September 2010

Nine ways to improve productivity • Eliminate systems downtime – it’s a prolific thief of business productivity and revenue. • Implement a robust and comprehensive disaster recovery plan, and have a good backup plan in place to reduce risk of data loss through theft, fire or natural disaster. • A good anti-virus solution, amongst other measures, will help increase system security. • Upgrade your IT support to provide 24/7 cover. • Use instant messaging for real-time conversations. • Move some of your systems to cloud computing. • Investigate the productivity gains to be made by IT virtualisation. • Overcome the tyranny of distance by holding online meetings. • Reach more customers, more quickly, by streaming presentations live via the web.

Ian Funnell General Manager CODEBLUE

Warwick Grey Marketing Manager South Pacific hewlett packard

Cameron Gordon INTERNATIONAL MANAGER Auckland Chamber of Commerce

well above $8.00/kg. As for volume growth, drought conditions are now easing, though in some cases replaced by heavy rain – not ideal growing conditions for the early part of the season, but the risks have diminished.

The recent tremors in global markets, as a result of Europe’s sovereign debt woes, come at an unfortunate time for New Zealand. All the ducks appear to be in a row for the domestic economy: activity has picked up and is ready to accelerate, with a more balanced mix of growth focused around the goods-producing sectors. But there is a nontrivial risk that the European situation, if mishandled by the authorities, could lead to renewed difficulties in accessing credit – a particular risk for a nation like New Zealand that relies heavily on overseas financing. Europe aside, external conditions continue to work in New Zealand’s favour. Commodity prices have pushed on to new record highs, and export penetration into the fast-growing Asian markets (ex Japan) is steadily increasing. We estimate that export volumes, which saw only a modest turndown as a result of the GFC, increased by nearly 10% in the year to March, and that growth has been broad based. Dairy has been the star performer to date, exemplified by Fonterra’s initial payout forecast for the 2010/11 season of $6.90-7.10/kg of milksolids. This is 50c higher than for the latest season, and even on this initial estimate would be the second highest payout on record, following the $7.90/kg payout in 2008. Fonterra also noted that if world prices and the exchange rate hold around current levels for most of the season – a big if – the final payout could be

Business confidence, one of the most reliable short-term indicators of growth, remains on the up-and-up. Own-activity expectations are at their highest in 11 years, and employment and investment intentions are now at above-average levels. These readings are consistent with quarterly GDP growth accelerating into the range of 1% or more. Indeed, the recovery is now so well established that even the labour market has convincingly turned the corner, with the unemployment rate falling from 7.1% in December 2009 to 6.0% in March 2010. Against this backdrop, on June 10th the RBNZ took the widely anticipated step of beginning to remove some of the substantial monetary policy stimulus currently in place. The Official Cash Rate (OCR) was lifted by 0.25% to 2.75% and in the accompanying statement the RBNZ made it clear that this should be seen as the first step in an extended series of rate hikes. The RBNZ’s projection for 90-day interest rates implied that the cash rate will rise to between 5.5 and 6.0% over the next few years. That’s not quite consistent with a 0.25% lift at every review date for the next couple of years - but it’s not far off.

August/September 2010 b-Innovative

Creating high value relationships for your business

by Clare Coulson

Keeping your networks alive through human interaction and good use of software is a business must for success. New Zealanders are very proud of the two degrees of separation that link us all together. Television campaigns have been based on the concept, a telco has named itself for it, and it keeps us connected when we travel overseas. But even with such a closely linked society, it can still be hard to keep a track of all of our business relationships and ensure that we are getting the best value from them.

Spinning the web Although Kiwis might only need to talk to two people before we find a connection

b-Innovative August/September 2010

Feature in common, it doesn’t mean that business networking comes easily or should be overlooked. Murray Chapman is the Membership Manager at the Auckland Chamber of Commerce and he sees savvy networking as a must for business success. “To me, networking is probably one of the main planks in any business’s marketing programme,” he says. While marketing campaigns have their place, nothing is better than getting face to face with someone to understand their needs and goals. It is also a great way to promote the cross-pollination of ideas amongst your peers. Indeed, networking is such a powerful tool that Murray suggests approximately 70% of those who join the Chamber do so purely

for the networking opportunities. “It is still probably one of the best ways to make business contacts,” says Murray. “You can go along to a networking function and walk away with 30 or 40 business cards.” While not every contact you make will garner new business, if even a small percentage of them do, you will easily recover the cost and time spent at a networking event once a month. Successful networking is a learned skill and the Chamber is happy to facilitate its members. There are courses you can attend on the art of networking, and there are some other simple steps you can take yourself to ensure you get the best out of an event. If you’re not a natural networker, let the event organiser know so that they can introduce you to some appropriate contacts. It can be daunting to walk into a room full of people you don’t know, but no one need be a stranger at a Chamber networking event. Murray, who is a veteran networker himself, says while it might be tempting, don’t write someone off as ‘un-useful’ because they don’t fit your criteria. “If you’re sincere it says a lot about your brand. Remember each person has their own great networks behind them.” explains Murray.

Nurture and grow The real key to successful networking, however, is following up. Like a garden, you can’t just sow the seeds and walk away; your new and older contacts need to be tended to and nurtured before you can reap the rewards. One of the simplest ways of growing these business relationships is to spend half an hour once a month having a coffee. Chapman suggests you broaden the conversation to include topics other than business. This makes the interaction more relaxed and builds a human and personal relationship with your client that is not solely based on business and ‘what’s in it for you’. “Meeting people on neutral ground is so different to sitting in someone’s office across a desk from them, which tends to be somewhat adversarial.” In the same vein, one of the most powerful forms of networking is to help others build their contacts by introducing them to relevant people. While there is no direct benefit to you of doing this, the indirect results of this small act of thoughtfulness will be surprising. “It’s just a matter of having a slightly more lateral view of the networking event rather than just ‘business for me’,” says Murray who explains that people tend to remember such positive things as genuine goodwill.

Business is a contact sport With more than 12,000 members and an ever-evolving network, the Chamber has a vast list of members from around the Auckland region and even throughout New Zealand. To get the best for your members, Murray says you need to constantly keep in contact with them and that’s where a good database comes in handy. A Customer Relationship Management system, or a ‘CRM’ system is even more effective in what it can bring your business. At the most basic level, CRM is a central repository of information, or a ‘central point of truth’ for an organisation’s customer and prospect information. Without such a central repository an organisation’s information can become fragmented, scattered across departments and broken up into spreadsheets, simple databases and paper lists. This is when duplication and inconsistencies occur in the data and it’s hard to get an overview of the organisation and implement appropriate strategies. A CRM system not only lists all of an organisation’s customer information, but it illustrates all of the activity that goes on around that data, managing sales calls and appointments, viewing history, and effectively segmenting the database for marketing, explains Adam Johnson, Account Manager at business application professionals Fusion 5. “The key value proposition of CRM is around increased productivity through time savings,” he says. Staff no longer have to go hunting for the relevant information across departments or rely on their memories, wasting valuable time on non-revenue generating administrative tasks. In addition to time savings, CRM allows for better insight into key business performance measures such as sales activity and managing pipeline. “As the old saying goes ‘if you can’t measure it, you can’t manage it’, so CRM becomes a tool for staff to make better decisions about where to focus their time, and for managers to take more informed action,” Adam explains.

Changing IT for the better Adam describes the business results he expects from implementing a new CRM system, using the example of a manufacturing firm with a sales team of 10. After the first two to three months there should be a boost in sales of 10% and the pipeline should be filling with more opportunities, faster, due to the increased available time the reps have. Using the smart database, the company can

August/September 2010 b-Innovative

Building valued relationships The following are our experts’ top tips on how to make your customers feel valued while getting the best out of the relationship for your business too. • Face to face networking is the best way to garner new business • Try to meet contacts on neutral ground as it helps create a relaxed and friendly atmosphere • Promote 100% adoption of any new system through good training and skills refresher courses • Keep your CRM system or other database ‘alive’ by updating it regularly • If you add new areas to the business re-program your CRM system accordingly so the tool remains useful • Implement robust systems and processes that address the positives and negatives of a business relationship, from informal catch-ups to credit control and debt collection • Ensure you have clear terms of trade to avoid customer confusion and disputes • Pick up the phone to resolve or prevent issues

80/20 Boil it down to its essence and there is a rule for pretty much anything in business. One oft-cited rule of thumb is the Pareto principle, also known as the 80/20 rule – that is 80% of your sales come from 20% of your clients. These clients are your high value relationships so you need to make sure you are in constant face-to-face contact with these key accounts. If you don’t appear to be putting in the effort, it’s much easier for these customers to go elsewhere.

also implement a simple marketing campaign via email, and this will stimulate a number of leads for the reps to follow up on. After six to12 months sales should be up 25% on the same time last year, due to increased rep time to sell, and a greater volume of opportunities coming to fruition. The email marketing campaign should have generated 10 well-qualified leads; three of these are active opportunities, and another was just closed – the value of that deal alone was 25% of the cost of putting in the CRM, and combined with the recent increase in sales, the system has almost paid itself off in the first year. In the future, sales staff will continue to build their momentum through the use of the CRM system. Sales figures will look better than ever and, using the information now at hand about customers and sales activity and performance, the managers will be able to be more strategic in their pursuits and decisions. “These are conservative results,” says Adam. “Typically organisations that implement CRM successfully (to address sales issues) see increased revenues of 40% within the first year.” Murray agrees that a good CRM system is “essential” but warns that, like anything, it is only as good as the information you put in to it. Adam says that however many bells and whistles your new CRM system may have, it’s not a magic bullet: “A quality implementation, user training and business buy-in to the project are key.” Rather than searching for a CRM system, make a list of requirements and objectives for your firm and seek out a knowledgeable local ICT partner to discuss your needs and potential solutions. “A good general rule of thumb is ‘keep it simple’ – make sure any system you select will address the immediate needs you have, but also has the ability to grow with any foreseeable growth,” advises Adam.

A bank or a business Software solutions, such as CRM, are not just about sales and marketing opportunities, they can also be used to keep your business solvent and improve your cash flow. A CRM system will help you sort customers into those with different buying – and paying behaviour. You can then manage each group appropriately to ensure you are better meeting their needs, and yours. Dave Wilson, New Zealand Sales Manager for EC Credit Control, says that often not enough emphasis is put on credit control and debt collection, especially in small to medium businesses. If you want to run a business

b-Innovative August/September 2010

not a bank, he says you need to have robust systems and processes in place to control credit and ensure payments are made on time. To help with credit control, you need to have a document stating your terms of trade. “Often we find that small businesses will copy other people’s terms of trade and they are not appropriate,” says Dave. While there are some standard clauses that are required, each set of terms of trade needs to be tailored to the business and industry. A well written, clearly expressed document will eliminate any reasons for non payment and stipulate the rights of the client and the rights of the customer. Dave suggests you seek out expert advice to help you put together your document. Once you have your terms of trade in place you need to ensure you have the right person chasing up late payments so that you don’t damage the relationship between you and your customer in the long term. “Some companies don’t realise that credit control is a specialised area and that not everyone can do it,” he says, commenting that it's often left to the office junior or receptionist who probably doesn’t have the will, time or means of doing it. A CRM system can help you ensure your team has all the relevant information at their finger tips, and that customers are handled in a way that is more tailored to their history and relationship with your company.

Complete collections You need to put formal processes in place for credit control and then stick to them says Dave. “If you’ve grown from a one-man-band to a six-person business, make sure you’ve got a good admin person in your business that is skilled to do the job.” When you are recruiting, make it clear that credit control is part of the role and look for someone with good interpersonal and negotiation skills who has a lot of tenacity and perseverance and who is prepared to pick up the phone and speak to people. Picking up the phone early on in the piece is very important to Dave, who says people often rely on a lot of paperwork going out, which doesn’t always have the desired effect. “I suggest what should be done is a very thorough and robust collection process of: invoice, statement, reminder letter of non-payment, then a phone call to the customer.” Make sure you put some time frames on when the payments are due and don’t be afraid to hand it on to a third party if they still haven’t paid.

“When I ran my own business in the past,” he says, “I never believed in paperwork. If someone hadn’t paid, I’d give them a week or so then get on the phone as a courtesy call.” This call doesn’t need to be adversarial, but just a check-in to find out if they are having problems with making the payments or if they are disputing the invoice. If you prefer to use a paper-based system, that’s fine, but make sure you follow up on what you say you will do. “People say they’ve got a great system but if they don’t actually use it: what’s the point of having it?” asks Dave. There are a number of automated software processes that can attach to accounting packages and Dave says the biggest help is a diary system that reminds you when to chase up non-payment. Most of these software systems can be run in line with your

existing accounting systems, but if you don’t want to spend too much money on a credit control system, then your existing calendaring program will work just fine. If you feel that you haven’t got the skills to run credit control and debt collection in-house, then don’t be afraid to outsource, he concludes.

Man and machine Networking is only the beginning of a relationship. Once you have made first contact you need to continue to nurture that relationship throughout its peaks and troughs, from informal catch-ups for coffee to calling in the professionals for debt collection. To get the most value out of your customer relationships good planning systems and processes are needed. IT systems can help with this, but don’t lose the human

touch. With only two degrees of separation it is easy to make business connections in New Zealand but it is equally important to maintain them.

Adam Johnson

Dave Wilson

Murray Chapman

Account Manager Fusion 5

New Zealand Sales Manager EC Credit Control

Membership Manager Auckland Chamber of Commerce

Kookyaboutdesign,manufacturingqualityandservice byGrantWoolliams

’Made in China’ are the ubiquitous words on most clothing labels, and the majority of the other consumer durables we buy. So, do you have to be kooky to make clothing in New Zealand and sell it through your own retail outlets? Apparently it helps. The MYOB Awesome Service Awards became interested in Kooky New Zealand Designer Fashion when one of its Whangarei staff was nominated for, and subsequently won, an award for inspirational customer service. MYOB Awesome Service Award nominations go through a due diligence process and where a nominee is an employee we take an interest in the company that employs them. The reason for this is simple: the delivery of inspirational customer service by staff isn’t accidental. It typically flows from the signals (and training) they get from management. But Kooky sales assistant Lorraine Young’s award win also highlighted the fact that she works for an unusual business in this day and age. Kooky is 100% New Zealand owned, designs all its clothing, manufactures its entire special occasions range in New Zealand and sells it through its own stores (of which there are 15 around the country employing 42 people). Kooky has a factory and head office employing a further 19 full-time staff in Wanganui. We asked joint owner, and Kooky’s head designer, Suzanne Lee Sowry, about the pros and cons of manufacturing clothing in New Zealand versus China? “We manufacture our entire special occasion range in New Zealand and have our casual and corporate ranges manufactured in China using our own designs. “The advantage of manufacturing in New Zealand includes the design team

b-Innovative August/September April/May 2010 2010

being able to oversee the entire production everyday. The design team is able to tweak and perfect each process with ease. The garments made in China require their specifications to be 100% accurate which involves a lot more work for the designers.

make a sale through clever marketing and selling but that will be the only item you sell to that customer once they realise it is not up to scratch.”

What are your plans for Kooky over the next few years?

“The pros also include the fact that some of the Kooky machinists based in Wanganui have been with Kooky for up to 20 years. These women, therefore, know our standards and techniques exceptionally well and are able to train new staff with ease.

“We are opening a wholesale division to service both New Zealand and Australia, and plans are also in place to open our own stores in Australia.”

“Another big pro with having our own New Zealand-based factory is that we can do a quick turn around of a particular style if the market demands it. If we relied only on offshore manufacturing the lead time is much longer. Obviously by the time goods arrive the demand might no longer exist, and the opportunity is lost. This often happens so it provides Kooky with a huge advantage.

“We have very strong policies on how we like our customers to be treated.

“The cons (of New Zealand-based manufacturing) include the higher costs, especially wages.”

How difficult is it to operate a chain like this incompetitionwithmultinationalcompanies? “It can be difficult in terms of price, but so long as we maintain superior design and quality, and educate our customers to these attributes, then they accept a slightly higher price. “Kooky’s advantage against multinational companies is that we know our New Zealand market intimately and we can easily and quickly judge the demands of the customers and meet their needs, as opposed to accepting more generic designs that multinationals are forced to produce for cross-market appeal.

Whatarethemostimportantlessonsyouhave learntthroughowningandmanagingKooky? “You must have a superior product. No amount of marketing or customer service can make up for an inferior product. You may

How do you instill a strong customer service ethic among your staff?

“Our Area Managers undergo ongoing training which they pass on to Store Managers and staff alike. “Quite simply, good service sells. The easiest way to meet key performance indicators is for all staff to have exemplary service standards set for them, and we rigidly enforce these standards.“

Anycommentsyouwouldliketomakeabout the MYOB Awesome Service Awards? “It’s a wonderful award for someone passionate about what they do to receive. It’s one thing to get pats on the back from your boss. But when you genuinely love and strive to enhance your customers’ lives with great service and product, it’s a wonderful feeling to get direct feedback and thanks from them.” * Grant Woolliams assists in running the MYOB Awesome Service Awards which reward individuals for providing great customer/client service. To reward someone who has given you inspirational customer service go to www.awesomeservice.co.nz

No recruitment costs for a quality shortlist of candidates...

Call us now on 0800 18 23 23

We will link you with our wide range of talented candidates: • Full, contract and part-time staff • High calibre entry to professional level • AVAILABLE NOW Save time and money, call 0800 18 23 23 for more information or visit the b-Fit section of www.aucklandchamber.co.nz to preview candidates' profiles.

Skilled & qualified people seeking: • Employment • Work experience • project work Available now - new candidates joining us weekly The Chamber has a carefully selected group of job seekers qualified in engineering, technical, accounting and finance, sales and marketing, IT and professional administration fields. They are also available to work for your company for up to eight weeks with no obligation and no cost, on a work experience or project basis.

This is a FREE RECRUITMENT SERVICE We also have administrative and support staff available. Call 0800 18 23 23 for more information today

Candidate profiles are updated weekly in the b-Fit section of www.aucklandchamber.co.nz.

b-Innovative August/September 2010

These are just some of our candidates. For a full list of candidates currently available please go to the b-Fit section of our website, www.aucklandchamber.co.nz.

Dao Seeking: Accountant/Assistant Accountant/Accounts Administration • New Zealand and overseas accounting experience in manufacturing and service organisations. • Broad knowledge of financial systems and how businesses operate. • Comprehensive experience in accounting systems: account receivable and payable, banking reconciliation, daily accounts maintenance, payroll and financial reports. • Enjoys being part of a team as well as taking individual responsibility. • Responsive to deadlines and works well under pressure. • Continually seeking to improve work practices and procedures for more efficiency. Computer skills: MS Word, Excel, PowerPoint, Access; MYOB, Dreamweaver and Flash. Languages: Good English, fluent Mandarin, some Cantonese. Qualifications: Bachelor of Management Studies (Accounting), University of Waikato; Accounting Diploma, China.

Archer Seeking: Programmer/Software Engineer Software Developer/Web Developer • New Zealand and overseas experience in software programming and web development. • Broad knowledge in computer software, hardware and networking. • Skilled in Software Development Life Cycle (SDLC) and Object Oriented Programming (OOP). • Enjoys being part of a team, sharing knowledge and expertise. • Particular interest in developing skills in .NET or Java/J2EE. • Organised, confident and resourceful with meticulous attention to detail. • Able to work under pressure to meet deadlines. Computer skills: Windows, WinCE, Basic in Linux, Basic in Mac, Microsoft Office Word, Excel Power Point, C/C++, Visual Studio C++, QT C++, Java, C#, PHP, MySQL, SQLite, HTML, CSS, JavaScript, Photoshop, XML, XSLT, Ruby + Watir, SVN repository, Jira. Languages: Fluent English, Tagalog and Cebuano. Qualifications: Bachelor of Science (Computer Engineering), Philippines.

Alice Seeking: Accountant/Assistant Accountant/ Accounts Administration • New Zealand and overseas experience in manufacturing and service organisations. • Broad knowledge of accounting and financial systems and how businesses operate. • Practical accounts administration experience including analysis and report preparation, account maintenance, invoice preparation, bill payments, payroll processing, cash handling and bank reconciliation. • Accurate data entry with good attention to detail. • Responsive to deadlines and works well under pressure. • A cheerful and friendly great team member. • Willing, helpful and keen to learn. Computer skills: MS Word, Excel, PowerPoint, Access, Outlook Express, Publisher: Photoshop, Auto CAD, MYOB. Languages: Good English, fluent Mandarin, some Cantonese. Qualifications: Bachelor of Business Studies (Accountancy), Massey University; NZQA Certificate in Computing Level 3; Certificate of Computer Information Systems Management, China.

Ishtiaq Seeking: Laboratory Technician/Geological Testing/Materials Engineer • New Zealand and overseas experience in laboratory and field testing for major infrastructure projects. • Knowledge of local and international standards for testing construction materials. • Confident communicating at technical and non technical levels. • Enjoys training and developing others by sharing skills and expertise. • Awareness and understanding to project deadlines. • Organised and meticulous approach to documentation. • Accredited IANZ signatory in Soil, Aggregates and Asphalt. Computer skills: MS-Word, Excel, Internet; In-house Systems: LIMS, SAMTRAC. Languages: Good English, fluent Urdu and Punjabi. Qualifications: Master of Science (Geology), Bachelor of Science with Honours (Geology), Pakistan.

Theta’s

experience

When Christine Nesbit, Office Manger at IT consultancy Theta Systems, needed a new receptionist and admin systems person, she turned to the Chamber’s Recruitment Solutions for the second time. She had previously found a new receptionist through the Chamber’s Migrant Kiwis programme, which she heard about in our newsletter and radio advertising. She was so pleased with the service, which has resulted in the chosen candidate being promoted twice internally to reach the post of consultant, that she didn’t hesitate to contact the Chamber again. This time, she chose Amy from the Return 2 Work programme, which helps skilled and motivated people re-enter the workplace in business support roles. Christine describes Amy as efficient, competent, proactive, friendly and helpful. She has fitted into the company really well, has a skill level that is better than expected and has a great attitude. “We just did her three month appraisal and we are both very happy,” she said.

Thanks to Amy’s proactive and friendly manner, Theta has already expanded her role to include a wider variety of admin tasks, such as accounts payable and collections tasks. “Because she comes across as being competent and willing, people are actually saying ‘that’s something that Amy can take over’,” explains Christine. “The Chamber made it so easy for me to successfully recruit for this role. I didn’t need to advertise and sift through hundreds of CVs and have countless conversations and interviews. Instead I reviewed three CVs sent to me by the Chamber, interviewed two of the applicants and hired Amy. How easy is that?” It has been such a success that Christine has since passed on the details of the recruitment solutions services to two other businesses. For Amy’s part, she has thanked the Chamber for the very helpful information she received on the Return 2 Work programme’s course. ”I feel good to know I have the Auckland Chamber of Commerce supporting me on my way back to employment.”

August/September 2010 b-Innovative

Are you seeking skilled staff? Tap into local talent or we'll help you go global. Register now www.newkiwis.co.nz • New Kiwis is a free web based recruitment service. • Search for skilled people from our database of job seekers. • Advertise a vacancy.

Please call us on 0800 18 23 23 or email us at newkiwis@chamber.co.nz. Partnership project with:

Cadets maximise their potential

A new group of talented cadets has just graduated from the CadetMax programme and is now equipped with the skills and enthusiasm needed to enter the workforce.

half year Food and Beverage apprenticeship with the financial support of CadetMax. She was a finalist in Food and Beverage apprenticeship of the year 2010.

CadetMax links employers to young talent and helps cadets lay the foundation for great careers through an intensive workreadiness programme.

“CadetMax has given me so much support, not only with my studies but everything. I have gained the confidence I previously lacked and a fantastic job in an industry I am passionate about.”

Toni Thompson, an 18 year-old graduate of the programme, found a career in an industry she loves through CadetMax and is enjoying contributing to the success of an iconic New Zealand business. “I heard about CadetMax on the radio and signed up,” says Toni. “After an intensive two-week course we went on a site visit to CityLife Hotel. As soon as I walked through the doors I knew I wanted to work there. I told the CadetMax team, they organised a week-long work experience placement and by the end of that week CityLife had offered me a job.” After just three months on the job, CityLife entered Toni into the Culinary Fair Food and Beverage competition where she won a silver medal. “I felt a bit out of my depth, but I believe it’s all about having the right attitude and that’s why I think I managed to do well with very little training.” Toni has now been at CityLife for over a year . Toni has translated her can-do mantra into her studies; she is undergoing a two-and-a-

Toni wishes to develop her career further in hospitality and aspires to one day own a restaurant or bar. “I know I have a great career ahead of me. Everyone has said it for a long time and now I finally believe it.” Funded by the Ministry of Social Development and delivered by the Auckland Chamber of Commerce, the CadetMax programme is free for the cadets and the employers.

“Cadets all over Auckland are now climbing the career ladder in their respective industries. I would urge any business needing some extra help to let us know. We’ll send you a suitable cadet for a week of work experience to try out the industry. Becoming involved with CadetMax is a great way to support your local community and nurture talent within your organisation,” Leah adds. For more information about CadetMax and becoming a CadetMax employer, please call 0800 709 907 or visit www.aucklandchamber.co.nz.

Leah Gates PROJECT MANAGER Auckland Chamber of Commerce

Leah Gates, Manager of the CadetMax programme says: “We are delighted that Toni has found her passion and is making a positive contribution to one of the leading organisations in the hotel industry. Many cadets don’t get the start in life they deserve, but Toni is living proof that with a positive attitude, some determination and bit of support you can start a great career even when times are tough.

August/September 2010 b-Innovative

UPCOMING Training and EVENTS

AUG 2010

Vital Training Course:

Creative Entrepreneurs with Murray Tom

Vital Training Course:

Negotiation Skills To Improve Your Bottom Line

Marketing For Results

Microsoft Excel II

Managing Debt Out Of Your Business

Vital Training Course:

Taiwan Business Leaders Forum

Vital Training Course:

Strategic Business Planning

Do More Through Better Time Managament

Managing People To Give Their Best

Vital Training Course:

RWC Seminar

Vital Training Course:

Professional Sales Skills

Microsoft Word

Create Your High Performing Team

Vital Training Course:

Microsoft Outlook

Do More Through Better Delegation

Changing Tables South

Vital Training Course:

Microsoft PowerPoint

Energise Your Sales People

Microsoft Excel II

OCT 2010

Vital Training Course:

RWC Seminar

Vital Training Course:

27 Vital Training Course:

Cornerstone: Networking For Success

Microsoft Excel III

Negotiation Skills To Improve Your Bottom Line

Vital Training Course:

Professional Sales Skills

Managing Conflict For Peak Performance

Marketing For Results

Accounting For Non-accountants

b-Innovative August/September 2010

Vital Training Course:

World-class Customer Service

Professional Writing Skills For Business

Vital Training Course:

Business Club North Shore

Vital Training Course:

GST Update

Professional Writing Skills For Business

Professional Telephone Skills

Vital Training Course:

Professional Sales Skills

Networking For More Business

Professional Reception Skills

Changing Tables Central

SEPT 2010

Vital Training Course:

Successfully Managing Tough Customers

Microsoft Excel I

The Great Chamber Debate

ba5 with Allen Calendars

Vital Training Course:

Accounting For Non-accountants

Microsoft Transition to Windows 2007/2010

Vital Training Course:

Managing People To Give Their Best

Negotiation Skills To Improve Your Bottom Line

World-class Customer Service

Professional Sales Skills

Managing Conflict For Peak Performance

Microsoft Word

Presenting With Persuasion

Vital Training Course:

Managing Debt Out Of Your Business

Microsoft Excel III

REGISTRATION INFORMATION For more information about any of the events profiled, please contact our Events Team on 09 309 6100 or for registrations email events@chamber.co.nz.

August/September 2010 b-Innovative

BUSINESS CLUB NORTH

Shore and certain success Thursday 12th August

Climb aboard for the Chamber’s next complimentary Business Club event on Auckland’s North Shore and take time to grow your business through the Chamber business network. You'll have the opportunity to lift the visibility of your brand and make valuable connections with other members of the Auckland business community in a comfortable and friendly atmosphere. It is free to attend and you can promote your products or services at a Table-Top Expo for just $150.00 + GST. Renowned Westpac Economist, Dominick Stephens, will share his thoughts on plain economic sailing and the business opportunities in the year ahead. As one of New Zealand’s foremost financial commentators he will be able to advise you on how to make your business a success. Building your network, giving your brand visibility and cementing client relationships sometimes means doing something extra and attending Business Club will ensure you enjoy an event which never fails to deliver.

Creative Entrepreneurs

Going for a song Wednesday 4th August

Imagine having your product named as Oprah’s ’Favourite Thing’ while simultaneously achieving the success you’ve always dreamed about. Hear how the right mix of creativity and business sense has enabled Murray Thom to do just this. From the humblest beginnings, Murray Thom was Managing Director of CBS Records New Zealand by the age of 23. Join other business people for a relaxed and informative evening at the Chamber’s Creative Entrepreneurs event. You’ll hear about the challenges Murray has faced and how he has overcome them with such flair. Don’t miss this chance to build your connections and knowledge while socialising over fine wine and canapés at an event designed especially for innovative, enthusiastic, creative entrepreneurs! Proudly sponsored by Villa Maria Estate and brought to you in association with Idealog. Date Wednesday 4th August

Proudly sponsored by Westpac.

Time 5.30pm - 7.00pm

Date Thursday 12th August

Venue Orams Marine Boat Park (Auckland), 142 Beaumont Street, Westhaven

Time 4.30pm - 7.00pm Venue Ballroom, The Spencer on Byron Hotel, North Shore City, Auckland Tickets Complimentary (registration is essential) Table-Tops Members $150.00 + GST This cost includes the table, 1.8metre x .6 metre, a table cloth and power at the site.

b-Innovative August/September 2010

Tickets Members $37.00 + GST Non-members $47.00 + GST

Social media is the future of business

THE GREAT CHAMBER DEBATE Tuesday 7th September

At last, the social media question and its place in your business will be settled once and for all! Join us for a fun and informative evening of lively debate where friends, followers and critics of the social media craze can explain the measure to which it can meet commercial objectives. If you’d like to know more about social media, or if you can share some important considerations, make sure you register early. You’ll enjoy fine wine and finger food, not to mention scintillating conversation! Proudly sponsored by Vodafone. Date: Tuesday 7th September Time: 5.30pm - 7.00pm Venue: Ellerslie Events Centre, Ellerslie Racecourse, Auckland Tickets: Complimentary (registration is essential)

TAIWAN BUSINESS LEADERS FORUM

Round table Thursday 19th August

Are you looking to grow your business through international trade, and would like to know where the best opportunities lie? In the first quarter of 2010 Taiwan’s imports increased 71%. As a result, Taiwan is an option that all New Zealand exporters should be considering as an export market for fuelling growth. Join the Taiwan Business Leaders Forum for a seminar by two of our brightest stars in the Taiwanese market. Stephen Lyttelton, Chief Executive of New Image Group, will talk about how his company, in six short years, has firmly established itself in the Taiwan market and the key lessons the company has learned along the way. In addition, you will hear from Matt Ford, Regional Sales Representative – Asia/Pacific for Dominion Salt. Recently returned from Taiwan himself, Matt will tell you about Dominion Salt’s business with Taiwan and share some tips for doing business in and with this sector of the Asian market. You will also have the chance to get answers to any questions you have during a panel discussion including our presenters and John Bedkober, International Market Manager, North Asia, NZTE, and Eugene Chen, TECO.

Seminar

Intentional victories seminar Wednesday 15th September

Learn the secrets to a life of ’intentional victories‘ with Dr. Jeff Spencer, the man behind more than 40 World, Olympic, Tour de France, and National champions.

Is your business prepared to handle the rise in GST? The Chamber, in association with Ernst & Young, is pleased to present a practical and informative seminar which will help you make sure you can manage the change successfully.

Described as ‘part doctor, part guru, part medicine man’ by Armstrong, Dr Spencer is responsible for instilling the mental and physical readiness to win in some of the world’s most successful individuals, teams and organisations – from elite athletes to ultra-successful business people and even a rock band legend.

• How you will label goods to cope with sales after the rate change

In his presentation he will share the strategies he uses with his top clients to get them to the top of their game, whatever and wherever that may be.

• How pre and post-GST returns work

Don’t miss this chance to hear from the ‘champion behind the champions’ and learn how you can start building a life of intentional victories. Register for this essential seminar now and put yourself on life’s podium.

• Whether you will be able to pass on the GST increase to customers

• What accounting systems changes are needed and whether you will need to have both the new and old rate in your system • How to cope with having to use a GST ratio of 3/23 • Whether customers should pay early • The impact on long-term contracts, automatic payments, and credit limits • How to budget for the cash-flow impact

• What special rules will there be for those on a payments basis The rise in GST could be one of the most important issues your business faces this year so make sure you have the information you need to manage it effectively – please register early as places are limited. Date: Tuesday 17th August Time: 9.00am - 11.30am

(registration starts at 8.45am)

Venue: Rendezvous 2, Rendezvous Hotel, Cnr Vincent Street and Mayoral Drive, Auckland Tickets: $45.00 + GST

Date Wednesday 15th September

Time 9.00am - 10.30am

Venue Wintergarden Room, Northern Club, 19 Princes Street, Auckland City

Dress Formal business attire (tie and jacket)

Tuesday 17th August

Jo Doolan, Tax Partner with Ernst & Young, and Andrea Catte, Senior Manager with Ernst & Young, will provide essential guidance on what you can do to be ready for the rise. You'll have an opportunity to get answers to any specific queries you may have and you will also gain solutions for concerns such as:

Time 9.00am - 10.30am

Venue Wintergarden Room, Northern Club, 19 Princes Street, Auckland City

Managing GST changes in your business

This is a rare opportunity to hear Dr. Spencer, or ‘Dr Magic’ as Lance Armstrong and his teammates called him, at the Auckland Chamber of Commerce’s Intentional Victories Seminar.

Date Thursday 19th August

(registration starts at 8.45am)

seminar

Dress Formal business attire (tie and jacket) Tickets $35.00 + GST

Tickets $37.00 + GST

August/September 2010 b-Innovative

RUGBY WORLD CUP 2011 AUCKLAND SPEAKER SERIES

Investment ready Ensure your business is investment ready when the world arrives in 2011. At this highly informative seminar you will hear first hand about how one business has already tapped into the potential of international connections. You will also be provided with an understanding of what planning is underway to attract investment to the region and of the various networking events that are being arranged to help business like yours engage with an international field. Information seminars Investment Ready

Date Tuesday 31st August Time 3.00pm - 5.00pm Venue Decima Glenn Room, The University of Auckland Business School, Room 310, Level 3, Owen G Glenn Building, 12 Grafton Road, Auckland Tickets Members $37.00 + GST, Non-members $47.00 + GST

Changing Tables

Promote your business personally Looking for a fun, effective way to meet new customers, contacts and suppliers? This event has been designed to provide you with the opportunity to promote your business in a relaxed and interactive environment. The Changing Tables format enables you to connect with at least 15 other business people over breakfast, with everyone given two minutes to pitch their products or services to the others seated at their table, in each of the three rounds. Places are strictly limited so book now for the chance to: • Source new customers and suppliers, and gather advice and support • Grow your network of business contacts & share ideas and experiences A light buffet breakfast will be provided.

ba5 events are the perfect opportunity to network, socialise, share experiences and make valuable business connections in a relaxed environment.

You’ll learn how to: • Build networks confidently • Understand the different networking styles • Indentify your own personal networking style • Create your own networking checklist • Use ten key networking strategies

Time 7.00am - 9.00am

(registration starts at 8.45am)

Tickets Members $20.00 + GST (limited to one person per company)

In August, Allen Calendars will present on growing your business by targeting your marketing to help acquire new customers, retain your present customers and even win back past customers with proven examples from their Pictorial Calendars and Business Promotional Products divisions. Date Wednesday 22nd September Time 5.30pm - 7.00pm Venue 4 Carr Road, Mt Roskill

Proudly sponsored by Westpac.

Time 9.00am - 12.00pm

Complimentary networking Wednesday 22nd September

Networking is one of the most powerful and cost effective ways to gain new clients and market your business. This fun cornerstone course will help you to enjoy approaching new people and boost your ability to network.

Date Friday 27th August

Time 3.00pm - 5.00pm

Tickets Members $37.00 + GST, Non-members $47.00 + GST

Tuesday 28th September

Networking for success

Date Tuesday 28th September

Date Thursday 30th September

Venue Decima Glenn Room, The University of Auckland Business School, Room 310, Level 3, Owen G Glenn Building, 12 Grafton Road, Auckland

Ba5

Changing Tables Central

Venue Robert Laidlaw, Room 2, Heritage Hotel, Hobson Street, Auckland

Customer Experience

Vital training CORNERSTONE SEMINAR

(next door to Bunnings hardware store)

Tickets Complimentary (registration is essential)

Venue Rendezvous Ballroom, Rendezvous Hotel, Cnr Vincent Street and Mayoral Drive, Auckland Tickets Complimentary, Non-members $250.00 + GST (registration is essential)

Changing Tables South

Date Thursday 16th September Time 7.00am - 9.00am Venue The Conference Centre, Central Room, 585 Great South Road, Penrose

Rebecca Seymour-East EVENTS MANAGER Auckland Chamber of Commerce

Tickets Members $20.00 + GST (limited to one person per company)

REGISTRATION INFORMATION For more information about any of the events profiled, please contact our Events Team on 09 309 6100 or for registrations email events@chamber.co.nz.

b-Innovative August/September 2010

Cash when you need it most “If only our customers had paid we would be able to pay our bills”. How often do we hear that? In the peaks and flows of the business cycle one factor remains critical to the ongoing health of the business – cash flow! It’s often described as the ‘oxygen of business’; without it the business can die. Ensuring a business has the working capital to manage it’s cash flow needs is a critical management responsibility. In many cases the bank can assist with a business overdraft to cover the cash deficiencies. However what happens if the bank is unable to help? A simple solution is an invoice discounting option of the type provided by The Interface Financial Group. The process is simple. Interface will advance the business cash generated from invoices issued to customers that are not yet due for payment. It will actually purchase enough of those invoices as are necessary to cover the cash deficit of the business. This will allow the business to make its important creditor payments on time – key suppliers, payroll, the IRD and the like. How it works. The chart outlines the process.

From the time the invoice is issued Interface can be funding it in cash within a couple of days. The cost is from 4% of the value of the invoice. This can represent very good value to have the cash up to 45 days earlier than would otherwise be the case. There are absolutely no other costs involved. Further, this arrangement can be used at the discretion of the business – it’s a ‘use it when you need it’ arrangement. No minimums, no term contracts, no fuss!

So what type of companies fit? • Start-up businesses with little financial track record • Under-capitalised companies • Rapid growth businesses with demand for their product/services exceeding the ability of their bank being able to fund this level of growth • Businesses experiencing continued slow payments from their customers Interface – the background story The Interface Financial Group commenced business in Canada 34 years ago. Today it is represented in the USA, UK, Australia, Singapore and New Zealand. The New Zealand business commenced in 2004. Since then it has grown significantly and today has 12 offices in main centres around New Zealand. The local offices give a special edge. “We can understand the local market and react quickly by being close to our customers,” explains Chris Reid the director of Interface. “Further we back our commitment personally – our local managers own their business.” “We are a specialist organisation providing cash flow solutions to small business through invoice discounting. This is our core business. It keeps us focused and able to give prompt and specialist assistance to small business throughout New Zealand.” For more information about our services call us on 0800 438 434 or visit www.interfacefinancial.co.nz.

Chris Reid Director THE INTERFACE FINANICAL GROUP

Case Study Roading Contractor – a growth story This small company faced the prospect of huge growth upon receiving a contract from a government agency to undertake numerous road repair works throughout the lower North Island. This required significant additional materials and labour costs which had to be paid before the income began to flow. Interface acted quickly to purchase the invoices generated and advance the much-needed cash to meet the labour and material expenses on time. “We were so excited about the new business opportunity that we didn’t stop to consider the cash position,” explains the company director. “Fortunately Interface was there to assist – we simply would not have got by without their help.” Case Study Information Technology Education – a turn-around story This Wellington business was contracted to assist schools in the East Coast of the North Island to improve their ability to provide IT facilities and courses for their pupils. While payments for this work were always virtually guaranteed, the process for reviewing work done and actual payment was very time consuming. This caused the business to miss creditor payments and suffer the associated stress that followed. Their bank referred them to Interface for assistance. A solution was put in place to fund some of the invoices as soon as they were issued. This evened out the cash flow and kept the key creditors paid. “Interface came along just at the right time. The cost initially seemed quite high, but it was well compensated from the reduced stress and the time saved in dealing with disgruntled suppliers,” explains the company owner.

August/September 2010 b-Innovative

training

Wintertime can leave us feeling grey and flat which can quickly have a negative impact on business productivity, but by taking the right steps, this can instead be a time to refocus, reprioritise, and give yourself and your staff a morale boost. Training is a powerful way to improve the productivity, retention, and loyalty of your team. This great news has been recently confirmed in a study through Victoria University, which also found that staff at every level will become more productive and loyal to their company if their manager invests in their improvement. Even basic numeracy and literacy training had an impact by lifting staff’s self esteem. Workplaces that help their employees to fulfill their potential (and not just the tasks defined by their jobs) will be more successful. IT is at the forefront of productivity improvements, but people often list it as a chief frustration because they don’t understand how to get the most of the systems that are in place. Even more often, the potential benefits aren’t achieved because people simply ‘don’t know what they don’t know’ – especially with programmes they use every day. Training in software skills is incredibly rewarding, both for the individual and business operations. If you are putting a new IT project in place, get users involved early with development and training; if they are excited about it and can see how it will help them, you will get a maximum return on

b-Innovative August/September 2010

From hum-drum to simply humming investment through more productive people and a healthy bottom line. But make sure you hold regular training updates when changes are made, or frustration will set in again. Professional development is often a long way down the list of priorities for businesses, but it is critical to bolstering staff morale and productivity. Productivity gains are best achieved when each person is supported in working more effectively towards your businesses vision. Here are a few ideas for a more industrious team: 1. Brushing up on core business and IT skills will leave you and your staff feeling more positive and in the right frame of mind to achieve your business goals. Areas where the biggest gains can be made include finance, customer care, communication, organisation, negotiation, delegation, time management and leadership. 2. Up skill your IT. There are often tools that lie dormant in your business, which could prove a great asset if only you knew about them. For example, did you know that you can boost your business’s brand by mastering Microsoft Word? Or that you can create videos for online marketing with the Microsoft Office Suite you already own? 3. Remember that multi-tasking is a myth – studies have proved that you are less productive if you are constantly

interrupted. Try to set aside some time to yourself to get desk-based tasks done. And if you can’t get everything done yourself, learn to delegate effectively. 4. Consider the hidden skills of your staff. Perhaps you have a website whizz sitting under your nose in accounts. Use your staff’s skills to their maximum: you will gain more from them and they will feel their extra abilities are recognised and appreciated, leading to enhanced productivity. 5. Don’t forget that good health plays a key role in keeping you and your staff happy and at the top of your game. Try to get out of the office for some fresh air and a change of scene at least once a day. If you are having trouble sleeping due to work stress, take time at the end of each day to plan for the next and learn to accept that you won’t always get everything done each week. If you are stuck in a winter rut, the Chamber’s Vital Training has a broad range of training programmes for all skill levels that will help you to get your staff’s core business and IT skills on track and set your business up to blossom next spring. To find out more about all the workshops on offer, please visit the b-Fit section of www.aucklandchamber.co.nz, call us on 09 309 6100 or email training@chamber.co.nz.

CREATE YOUR HIGH PERFORMING TEAM This half day workshop will provide you with methods and strategies to create your own high-performing team build group synergy and develop a shared direction towards a common goal. Some of the things you will learn are: • Leadership-directed versus self-directed teams • When is a team not a team? • Key elements that make a team successful and result orientated • Understanding the power of teamwork and the success it brings • Team dynamics • How to improve communication and team focus • How to pick and develop the best in your business Date: Monday 30th August Time: 9.00am - 1.30pm (one half-day) Training Fee: Members $160.00 + GST, Non-members $240.00 + GST DO MORE THROUGH BETTER TIME MANAGEMENT Time Management is a critical component of your business toolkit. Used effectively, time management is about setting boundaries, knowing where you are going and what you need to achieve.

TRANSITION TO MICROSOFT OFFICE 2007/2010 If your organisation is moving up to Office 2007 or Office 2010 there are huge productivity gains to be made – if you know how. Make sure you can hit the ground running with your new software and avoid wasting costly time working it all out for yourself. Date: Thursday 23rd September Time: 9.00am - 12.30pm (one half-day) Training Fee: Members $160.00 + GST, Non-members $240.00 + GST MICROSOFT WORD Use Microsoft Word to save lots of time, dramatically improve the way you communicate with your customers and even to strengthen your brand. Join us on this course and learn how to create a mail merge, create envelopes and labels, turn off the auto-format function, track changes within your documents, manipulate graphics, create tables from Excel and much, much more. Date: Wednesday 13th October Time: 9.00am - 1.30pm (one half-day) Training Fee: Members $160.00 + GST, Non-members $240.00 + GST

Gain tools to manage everyday time pressures and strategies ensuring your important tasks are more easily achieved. This course will help you to master time to get more done! Dates: Friday 20th August Time: 9.00am - 1.30pm (one half-day) Training Fee: Members $160.00 + GST, Non-members $240.00 + GST

August/September 2010 b-Innovative

China Business Leaders Forum By Cameron Gordon

b-Innovative August/September 2010

The Auckland Chamber of Commerce is helping Kiwis capitilise on trading with New Zealand's second largest trading market. Statistics released at the end of May show that exports to China rose from 3.08 billion to 3.9 billion in the year to April 2010. This is a 27.8% increase from the previous year’s figures. During the same time total imports from China fell 9.3% from 6.6 billion to 6.03 billion. China has been experiencing unprecedented economic growth in the last five years and this, in tandem with the growing number of Kiwis capitilising on the New Zealand-China FTA, is responsible for the upward trend in New Zealand export figures. But what about the falling import figures? Taking advantage of China’s increasingly high-quality, large-scale manufacturing base can be a good strategic move for New Zealand businesses looking to stay competitive in their market. Are there opportunities out there that are going unnoticed or is it that companies see China as simply too difficult a nut to crack? “For New Zealand businesses, China represents both an opportunity and a challenge. To maximise on the opportunities and overcome the challenges is a matter of understanding your options and choosing the right model for your businesses,” says

Auckland Chamber CEO Michael Barnett. “Doing business with China is not as difficult as it can sometimes seem from a distance. There are people and organisations out there ready to help you.” Getting the right advice from industry leaders and talking to other China traders will go a long way towards helping you get the most out of your business with China. Knowing who can offer you the right level of support for your business can be tough. For this reason, the Auckland Chamber of Commerce has launched the China Business Leaders Forum. The China Business Leaders Forum provides China traders with a platform to forge new connections with emerging and established China traders. Members are encouraged to use the Forum as a way of accessing advice and support not only from the Chamber, but also from fellow members. Joining the Forum comes at no cost.

Cameron Gordon INTERNATIONAL MANAGER Auckland Chamber of Commerce

The China Business Leaders Forum assists and supports emerging and established China traders by: • Advising China traders on key elements of doing business with China. • Providing China traders with key contacts in China through long-established relationships, including the equivalent of local Chambers of Commerce in China. • Providing China traders with potential Chinese distributors/suppliers/customers through the use of high-quality international trade directories. • Providing opportunities for China traders to network and learn about the China market at regular informative events, workshops and forums. • Providing China traders with expertise and guidance on taking maximum advantage of the New Zealand - China FTA, including may tariff advantages, 48-hour clearance of goods through China customs and access to dispute resolution mechanisms. The Auckland Chamber of Commerce is an authorised body for the certification of China FTA Certificates of Origin. • Communicating China trader concerns to appropriate New Zealand Government Departments. • Providing opportunities for China traders to meet with industry specific incoming Chinese trade delegations. • Providing information about trade enquiries received from China to China traders.

August/September 2010 b-Innovative

Rich media tools can really ‘bring home the business bacon’ when it comes to productive customer engagement as Paul Brislen, Vodafone’s Head of Company Communications proves. He is a brilliant story-teller. Still, when he explains how bacon, Twitter and the brand equity of a major telco are all related, it is unexpected. Paul tells how, while in the midst of a social media training session someone posted a question on Twitter for him: “What’s Vodafone’s view on bacon?” The answer is revealing in more ways than one. Barely batting an eye, Paul responded with: “We like it. We’d rather have happy bacon.” In just a few moments, something valuable has been achieved. As Vodafone’s resident ‘tweeter’, Paul managed to reaffirm his company’s branding as ‘smart casual and a little bit quirky’, engage a customer in a positive interaction and demonstrate that the corporate façade really does have a human side.

How can this be measured? The point is proved in the customer's reply: “And that’s why I stay with Vodafone, because I know that I can ask you stupid questions and you’ll give me an answer!” This type of customer relationship and brand resonance is at the heart of what brand strategists try to achieve, and now new media tools like Twitter are making it easier. Twitter, Facebook and other social media platforms can be used to provide customer support, market new products and engage customers in meaningful (and sometimes less meaningful) conversation. Paul explains this sort of interaction “goes beyond a buyerseller relationship and becomes something that benefits both of you hopefully”. You can even use the ‘Twitter stream’ (the micro-messages sent by people you are ‘following’) as a listening device to gauge public opinion on your company and your competitors and even to troubleshoot problems before they become a major issue.

And all because people are having an online conversation. Paul warns, however, that this sort of interactive media approach has to be balanced and sincere. “If you just do marketing, as a lot of companies do, nobody listens to you,” he says. “Conversation is a key component because that’s the bit where you move from just being a corporate channel (and you’re still a faceless enterprise to many) to the realm of conversation, and you break down those barriers and become a person to them. That’s invaluable.” Twitter has become an asset in client facing communications. It’s a new way of collaborating with your customers in a realtime situation which can be very productive. Indeed the whole reason for ‘social’ media is the theory that two heads are better than one. When we share information we can be more productive and more innovative. Kris Boyd, SMB Market Manager, Small and Medium Business, at Cisco is of such an

Rich media tools a business treasure chest

b-Innovative August/September 2010

by Clare Coulson

Feature opinion. While rich media, and particularly collaboration, has been around since smoke signals, the ICT age has completely changed how we collaborate – “it has allowed us to store the information, access it and manipulate it”, he says. “Collaboration is fundamentally about people being more interactive in the way they communicate and share and work; by doing that more effectively they can leverage the resources of a much larger capability. IT is an enabler in this interaction and it supplies the tools and the mediums for people to be able to do this more effectively,” says Kris. Collaboration can reduce costs and increase customer satisfaction, in essence increasing productivity and competitive advantage. This is a compelling proposition for any business person and Kris says he is witnessing a shift towards collaboration in the workplace. “I see a lot more organisations

implementing the various components of unified communications,” he says. Rather than just putting in a replacement telephony system, decision makers are actually looking for a solution that ties the telephone system into their enterprise solutions, their enterprise data and their network and that will also provide the tools to allow them to connect better with other parties. Tools like 'presence' and instant messaging are now becoming quite popular. Unified communications (UC or unified comms) is a suite of software applications that provides collaboration and communication tools. It can be a lot of different things to different people, but phone or web conferencing and ‘presence’ (where you can see who is available to be contacted and by which means) are some of the most popular

Video is bringing back the richness of our communications. Kris Boyd,Cisco.

tools within those suites. Web-based voice or video conferencing is another collaboration tool that is becoming very popular – it’s extremely easy to access online and you can also share slides, working documents and record your conversation and accompanying presentation for playback later. And finally, social networking is becoming an increasingly popular way for customers and businesses to have a two-way discussion, as illustrated above. If you are a small or medium business interested in implementing a collaboration solution as part of your ICT upgrade, Kris suggests that you first think about your underlying ICT strategy, rather than focusing on the solution to one problem. Once you have done that, try out web-based conferencing and unified communications, specifically the presence, messaging and mobility components. The final element of a collaboration strategy in your workplace, is to address the increased amount of video that is being run over your office networks for business as well as pleasure.

“There is a fundamental shift in people starting to move towards a video- based work style,” says Kris. This is a reaction to the reduced ‘richness’ in our communication styles. Most recently we have moved from the informal letter-style of emails to text messages or instant messaging and as a result have lost much of the ‘texture’ of our communication. Pre-telephone era only 7% of meaning was conveyed through words; these days we have become reliant upon shortened communications that have been abbreviated to use up the least number of characters possible. “Video is bringing back the richness of our communications,” explains Kris. Using video in the workplace might sound like an expensive option but, in fact, communication via video can not only save money in travel, but also increases productivity (through online document collaboration) and can be managed more and more easily with content management systems (CMS) which are now low cost or free. Indeed, Cisco itself saved US$1 billion

in travel costs worldwide in six to eight months by using its telepresence and video conferencing solutions in-house! The Chamber is taking advantage of the ease and effectiveness of video with addon components being launched to enhance training programmes. Senior Trainer for the Chamber's Vital Training division, Graham Caine explains: “There’s a lot of different styles of learning, and in order for training to have a great impact, we need to engage as many of them as possible.” Broadly speaking there are three styles of learning: kinetic or experiential (people who use their hands), aural (absorbing information through listening) and visual. With this in mind, the Chamber has already evolved its training programmes to use musical, multimedia and visual stimuli, as well as more traditional teaching techniques, which creates a collaborative and interactive learning environment. “With experiential learning you absorb information better and therefore you can apply it better in the future,” he says.

As a follow on from these multi-dimensional training courses, the Training Department has now developed video follow-ups for a number of its training programmes. Online participants can access these video followups via a hyperlink in an email sent out a week after the course. Previously the carefully tailored action plans that student and trainer complied before leaving the course were solely paper-based. Now the two- to four-minute video clips will help to remind students of the commitments they made during the course and refer them back to their manuals, which hold a wealth of information. This fosters a more active engagement with the training material once they leave. “By using this approach we can encourage people to absorb the material that much better when they are back in their office,” says Graham, who hopes that the addition of online videos will help ensure the new skills people develop on the courses become new habits. While few training institutions are doing something on the same scale yet, Graham says the difference in results will be enhance by the Chamber’s small class size. “When we do something like this it has a greater impact because you are going to be doing this video feedback and video-logs with the person you did the course with. This is different from a large-style lecture where you don’t have that engagement with the person directly, so when you hear their words again it doesn’t have the same impact.” As with Twitter and other social media tools, collaborative tools such as this have a greater impact if there is a personal relationship between the participants. In this case the student has already had a direct personal relationship with the trainer featured in the

video, so they are more likely to absorb the information when it is given in the same words and the same voice, enhancing motor neuron memory. “Personally I believe that while there is a move to things like (semi-interactive) webinars and to short downloads of knowledge, the problem is we lose the human touch,” says Graham. And the opportunities of rich media are all about engaging and connecting people with others, rather than engendering a passive one-way dialogue. Rich media tools, be they email, phone or video conferencing, or social networking, must be applied in the correct way to be successful. When done right, technology is a great enabler. In the future, you can expect even more from your mobile network with the launch of the 4G or Long Term Evolution (LTE) mobile phone network. With download speeds ten times faster than the upgraded 3G networks, workers will be able to go truly mobile. To return to Paul from Vodafone, he says he sees many business people who now conduct entire tracts of their business on smartphones, not even waiting to return to their laptops. With the new speeds coming in the 4G network we will be able to enjoy some “astonishingly rich apps” he says. Whether your customers want to talk about bacon or business, rich media tools will make you more productive, enhance your customer relationships and transform your brand’s public perception. So, what do you think about bacon now?

Paul Brislen

Kris Boyd

Graham Caine

Head of Company Communications Vodafone

SMB Market Manager SMALL AND MEDIUM BUSINESS Cisco

VITAL TRAINING AUCKLAND CHAMBER OF COMMERCE

August/September 2010 b-Innovative

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