MGI AUSTRALASIA NEWSLETTER Issue 10, December 2013
A WARM WELCOME TO ANOTHER ISSUE MGI Australasia has been under the international spotlight with the recent hosting of the MGI International AGM. This highly successful event was th held in Sydney on the 16 – 18 of October. I would like to congratulate Matt Moy and the staff of the MGI Sydney on organising the event which attracted 104 delegates and accompanying partners. The event certainly justified the eighteen months of effort that went into staging the event. Feedback from the attendees indicated that the Sydney AGM was one of the best international AGMs ever Melissa Smith, MGI Sydney has provided a first hand update on the AGM happenings and major discussion points in her article The city is Sydney! Not to be outdone by the MGI International AGM, MGI Australasia held its AGM in Melbourne in midJuly. Kevin Roe, MGI North Queensland gives his views on more than just the AGM content in his article entitled An AGM For All Seasons. The last six months has seen the completion of service on the MGI Australasia Executive Committee of two long standing members: Nick Watson, MGI Cairns; and Nick Francis, MGI Auckland. On behalf of MGI Australasia I would like to acknowledge the invaluable work of these two executive members. Both of whom have for many years commuted long distances to attend Committee meetings. Nick Watson provided Secretarial support to the Committee while Nick Francis served not only as a member of the MGI Australasian Executive Committee but also as our area representative on the MGI International Committee. Thank you to you both for your support and input into the development of MGI At the International AGM Grant Field stepped down from a position which he has held for six years as the MGI Australasian International Committee member. Under Grant’s stewardship a number of important changes have occurred in relation to the management and operations of MGI World. I would like to acknowledge Grant’s invaluable contribution in shaping MGI to become the organisation that it is today. His dedication and strategic insight means that Matt Moy who is our new replacement on the Committee has an exemplary model to follow.
A further thank you, this time to Grant, for his outstanding contribution. We have our usual partner profile. In this issue we have featured a relatively new face to MGI – Sam Pigliardo of the Perth firm – Parkinson. We also have an interview with the newly appointed MGI International Chairman, Erik Emilsson from Sweden. Talking about MGI International Chairmen, at the MGI International AGM, Des Caulfield, MGI Adelaide, and the MGI International Chairman from 2003 – 5, was toasted for his 40 year work history in the one firm. This is a remarkable milestone! Maree Caulfield, MGI Adelaide covers the local celebrations in her article Another amazing achievement. The MGI Australian Family and Private Business Survey 2013 was launched in July. MGI South Queensland held a breakfast with AMPLIFi (http://amplifigovernance.com/). Anne Stubbs, MGI South Queensland covers the event in her article, Record turnout for South Queensland Breakfast. We once again were represented at the Family Business Australian (FBA) National Conference held at the end of August in Launceston. Our thanks to Naree Brooks and Gary Douglas, MGI Melbourne and Des Caulfield and Angela Robins, MGI Adelaide for representing MGI at this event. We hope that you enjoy this newsletter and welcome any feedback for articles for the next edition.
Sue Prestney Executive Chairman MGI Australasia 1|Page
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MGI PARTNER PROFILE
What advice would you provide to recent graduates about how to become a partner? Firstly, learn the fundamentals of our profession well and gain some exposure to a variety of tasks. Secondly, get to really understand the clients business and tax affairs. Last but not least, enroll in a psychology course, it will come in handy!! What one person would you like to invite to your place for a meal and why? Diego Maradona. I am sure his life experiences and stories would have me captivated. If you were marooned on a desert island what one piece of music would you like to have with you? you
Sam Pigliardo Director, Parkinson (MGI in Perth)
Help! By the Beatles. s. Why? The T song title says it all.
Why did you decide to become an accountant? Initially it was because I had an interest in numbers and accounting. Also, I thought that getting some experience in accounting would be a good platform to build upon regardless of what career path I chose down the track. If you were not an accountant what would have been your next career choice? Why? I did consider being a Physical Education teacher, but I found out how w much they got paid, so I gave that a miss. Languages are something that interests me too, so something to do with languages would have been appealing. What do you like about your role? Why? I enjoy helping clients achieve good outcomes in their businesses, ses, be it helping them grow, add value and improve their businesses, and of course helping them preserve wealth (aka save tax). I enjoy the privilege of being a valued and trusted advisor to my clients and the respect that goes with it. What do you not like about your role? Why? Dealing with people that have unrealistic expectations or ulterior motives from what they say or do. It causes unnecessary angst.
If you were marooned on a desert island what one movie would you like to have with you and why? Shawshank Redemption – it’s an all time favourite of mine. What book are you currently reading? Five Families: The Rise, Decline and Resurgence of America’s Most Powerful Mafia Empires. What is your favourite rite past time outside work? Playing and watching sport is my favourite. favo Catching up with family and friends and travelling are also favourites, rites, but I don’t do enough of them. If you could have any one or any business or person in the world as a client who would it be and why? Roman Abramovich – I’m guessing his diverse business interests would keep me busy, and with his wealth he’d be able to pay my hefty (but justifiable) fees. Do you follow a national sporting code? If so which one and which team? Yes. In the AFL – The “mighty but unlucky” North Melbourne Kangaroos. In the AA League – Perth Glory. 2|Page
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THOUGHTS FROM THE NEW MGI CHAIRMAN Interview with Erik Emilsson, Managing Partner, Revideco, Sweden
to be alone and think now and then. I love what I’m doing. What are three things you should never do in this business? Being too greedy. Not respecting other people (employees and clients). Being dishonest. What have you accomplished that makes you most proud? A company of which employees and clients love to be a part. And that we as a company have learned from our mistakes. On a personal level that I continue to learn new things. And that I have overcome a lot of my fears.
Erik Emilsson Chairman, MGI World
What inspired you to become an accountant? I must say it’s almost accidental. I like businesses, and entrepreneurs, and I wanted to know more abut the financial side of it when I left university. I though I would have a “good school” by working as an accountant/auditor for some years, but it was so fun I decided to become an “accountant-entrepreneur” instead. So I started Revideco AB, after five initial years at PwC. What would you be if you weren't an accountant? An entrepreneur of some kind. Probably IT. Or a doctor. Then probably a psychiatrist or a neurologist. The brain is my favourite subject. I could also be a musician. I still don’t know what I want to be when I grow up... Tell us about Revideco AB and how you made it successful? I started it in 1994, and we have grown slowly since then. Today we have three offices, 10 partners, and employ 42 people. It is all about having the right people onboard, and to give them freedom to develop. I love people, and that is what I think is one of the secrets of Revideco’s success. What does being CEO of Revideco mean? Working half the time with client issues, together with one ore two of our employees. Trying to develop Revideco the other half of the time by talking a lot with the three office managers we have, and I also try
What do you do to relax? I play a number of musical instruments - piano, acoustic or electric guitar and sometimes the drums. I’m taking looooong walks, while talking about life with any of our four kids, or a good friend. Cooking and eating food together, while discussing interesting things. Reading good books, and discussing them with my wife. Being alone with my wife in our cabin in the woods (you need that sometimes with four children living at home...). Sometimes I drink champagne, and when I do I really enjoy that. Tell us a bit about the Scandinavian/Nordic market? The economy? The economy in the Nordic countries is in good health, especially in Sweden and Norway. We haven’t felt a lot from the European crisis, and the companies, our clients, are doing well. We are strong in the IT-sector and environmental solutions. We have a lot of entrepreneurs that come up with a lot of good ideas. The Nordic countries have come far when it comes to restructuring our large industries. And I think we are very good in leading advanced service companies, in a modern way. What would you advise Australian firms with Scandinavian clients? Way of doing business? Cultural nuances?
In Scandinavia you will normally meet business people that are easy to talk to, that go directly to the target of the meeting (no small talk…), that are very solution oriented but prepared to make compromises. 3|Page BUSINESS GROWTH ADVISORS
Normally you will see very few hierarchic organizations, so you can sometimes hear a Manager say that “he or she has to talk to the people at the office before taking a decision”. You can also meet Executive Directors and Managers that take days off to spend with their children, or even want to stay at home with them for six months or so, when they are small. Since the Scandinavians are very equal, this goes for both women and men, and that is especially true with the highly educated. Most women work, by the way, so the children are normally at daycare from 1.5-2 years of age. Where do you hope to see MGI in 10 years? I would like MGI to be an organization with close relationships between the members, and a lot of business exchange going on between everyone. More good, international members, of course, but we will never be the biggest organization. We shall compete with knowing each other well, and being prepared to walk an extra mile for a fellow member. We are entrepreneurs, and we understand entrepreneurs - that is what makes us different from the big ones. I also want to say that I think that MGI have taken a lot of important steps towards these goals during the recent years, and I’m proud, but not content, of what we have achieved so far. As an accounting entrepreneur what advice do you have for accountants starting out in the profession? Don’t be afraid to hire people. I know a lot of accounting entrepreneurs that tend to work too many hours and when they, at last, hire people, they don’t have the time to teach them in a good way. At Revideco we have a lot of people that have started with us directly from university, and they have been very well trained. And they have stayed with us, since we see them, respect them and listen to them.
Editor’s Note You may be interested in listening to Erik talk about being an MGI member http://www.mgiworld.com/about/our-difference
AN AGM FOR ALL SEASONS Written by Kevin Roe, MGI North Queensland Holding our MGI AGM in July in Melbourne, surely not!. As an ex Melbournian it was with more than a little trepidation that I left Cairns where the temperature was 27 degrees and headed down South where I was shocked to arrive to mild Melbourne weather. This was followed the very next day by the warmest July day on record. Could I have made a mistake leaving this cosmopolitan city all those years ago because of its very ordinary weather? This decision was emphatically validated on the Saturday after the AGM when we emerged from the hotel to a balmy 2 degrees which then rocketed to a maximum of 6 degrees. Needless to say we left in haste the next day. Anyway back to our AGM which was held in the salubrious confines of the Langham Hotel from the th 17 – 19 July. My conference kicked off with the Tax Committee meeting chaired by our fearless leader Brad Reid, MGI Melbourne, who drove the meeting at a very brisk pace while remaining entirely focused on the issues at hand. Due to this focused leadership we were able to fully cover our agenda and close the meeting in time for a quick refreshment before dinner. The Wednesday night dinner was held at the G, after a visit to the National Sports Museum where the super fit athletes amongst us - like Lloyd Everett, Marg Everett’s husband, MGI North Queensland and I - were able show our sporting prowess at some of the interactive displays. I am pleased to advise that I have recovered from the hammy injury incurred trying to kick goals from the forward pocket at the footy (AFL) interactive display. The museum was a real treat for the sports nuts amongst us but I did detect a little lack of enthusiasm from some visitors, mainly of the female persuasion. Fortunately my lovely wife did not arrive until the Friday so I was able to behave like a five-year old at the interactive displays. Walking around an empty MCG was a bizarre experience for those of us who have only ever been there with 50,000 or 60,000 of our closest friends. Dinner overlooking the hallowed turf was enjoyed by all.
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The difficulty of the Huntingdale course became apparent as some of our golfers had so many shots that they were late for our dinner departure to the Port Melbourne Yacht Club.
David Thomas, Think Global facilitating the AGM session on Getting ready for the Asian century
After dinner I wandered off to bed as befits my advanced years but I did hear reports the next day that some of our members mounted an expedition to the Crown Casino at which there was witnessed some unexpected entertainment other than the roulette and blackjack tables. The AGM proper got underway on Thursday morning to the dulcet tones of Joff MacLeod’s, MGI Melbourne, opening address. The AGM continued throughout the day covering topics related to doing business in the Asian region. Dinner on Thursday was a very cultural affair at the National Gallery of Victoria which included a private viewing of the Winter Masterpieces: Monet’s Garden. After the National Sports Museum the night before, I was literally in culture shock but it was the floating plates exhibition that finished me off. Once again a great night was had by all and I believe most elected to go back to the hotel. No reports of further misbehaviour were received. The AGM wound up on Friday with Grant Field, MGI South Queensland and Sue Prestney, MGI Melbourne providing the MGI international and national updates. These reports were followed by a workshop entitled Working Together where the delegates spent time undertaking a SWOT of MGI and discussing what the priorities are for MGI in the next years. The afternoon’s activities consisted of eating and drinking on the Colonial Tramcar Restaurant and of some very ordinary golf at the testing Huntingdale Golf Club.
Panellists for the Getting ready for the Asian century session (left–right): Alice Wong, Bank of Melbourne, Peter Evans, Mawson Global, and Charlotta Oberg, Prisma Cross Consultants
It was at this stage that the Melbourne weather reminded us of where we were - with umbrellas being required for the dash to the bus from the hotel. I am sure the large deck overlooking the Port Melbourne Bay would have been a great place for pre dinner drinks on one of the three or four days of Melbourne summer but in July drowning was the more likely outcome. We were entertained with live music, great company and some extraordinarily bad dance moves (no names but you know who you are). On return to the hotel a group invaded the bar where we sat until we were tossed out. I have noted over the last couple of AGMs that our behaviour as a group has matured and that very late nights at places like the Ironbar at Port Douglas and I recall a similar night at the Stamford in Glenelg have declined. I think this type of behaviour is certainly a move in the wrong direction and that we should adopt “the growing old disgracefully” motto when we visit Perth next year. Some of our members, myself included may have to do a little training in order to keep up and more importantly look good at breakfast following these nightly outings. We all look forward to Perth next year and thanks to MGI Melbourne for a truly spectacular AGM.
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Editor’s Note For those of you wondering about Kevin’s “floating plates” reference have a look at the following http://www.ngv.vic.gov.au/whatson/exhibitions/exhibitions/celeste-boursier boursier-mougenotclinamen THE CITY IS SYDNEY! Written by Melissa Smith, MGI Sydney MGI Sydney recently had the privilege of hosting the annual International AGM for MGI. We welcomed over 70 delegates from over 26 countries “Down Under”. Informative and engaging daily sessions as well as impressive evening events and tours were planned that reflected the true nature of our stunning Australian City, and they did not disappoint. disappoint
Joel Barolsky of Barolsky Advisors presented for the remainder of the day, providing his insights on building trusted client relationships. He H gave us the seven keys to becoming a “rain maker” and some valuable strategic goals for our firms. The evening dinner and entertainment was at the infamous Ivy with an authentic Australian barbeque (we threw a shrimp on the barbie!) and cocktails. We were re lucky enough to have a private contemporary performance from Australia’s leading Aboriginal dance troupe Descendance featuring dancing and traditional didgeridoo playing. It was great to see our international guests up on stage pretending to be Emus and attempting to play the didgeridoo (which proved to be harder than it looks).
The Westin Hotel was the venue for the AGM due to its perfect proximity to the CBD, shopping precincts, major landmarks, art galleries and restaurants. The AGM opened on Wednesday night with a cocktail party at O Bar and Dining. Up 47 floors with panoramic views of the Sydney skyline,, it was the perfect venue for our overseas guests to see Sydney’s highlights as the sun set. The Opera House and Harbour Bridge could not be missed as the bar revolved. It was a time for fellow MGI members to get reacquainted ed before the commencement of the official proceedings.
(left–right): Sam Pigliardo,, David Fong, Parkinson, and Robert Lanzilli, MGI Adelaide
MGI CEO, Clive Bennett kicked off the first formal session with the launch of the debate on the network question. Clive also presented recent marketing actions and policy, including a taste of the new website upgrade.
(left–right): Shelley Keery, y, MGI Auckland and Maree Caulfield, MGI Adelaide
Friday morning we were on the edge of our seats for Jonathan Pain’s session on world economic trends, tre the importance of Asia and what it means for MGI. Jonathan took us on a journey around the world looking at developing economic trends, which provided everyone with a reality check. Next we had Lucio Dana who presented to us on Family Business and provided ovided insight into the results of The he MGI Australian Family and Private Business S Survey 2013. We then welcomed to MGI, Hanmi Accounting Corporation Korea and Parkinson (MGI in Perth) with presentations from David Fong of Perth and Young Ham of Korea.
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THE MGI AUSTRALIAN ALIAN FAMILY AND PRIVATE BUSINESS SURVEY 2013 th
Late June saw the launch of the 8 MGI Australian Family and Private Business Survey. Over the past ten years MGI has supported the research undertaken by the Royal Melbourne Institute of Technology University. As one of the longest running survey studies of its type in Australia as well as a in the world the survey forms an important promotional opportunity for MGI. Lucio Dana presenting his findings
Day two wrapped up with the new MGI international committee being introduced, which we are proud to say that our Matthew Moy is to be the representative for MGI Australasia.
(left–right): Brian Wheeler and Matt Moy, MGI Sydney and Grant Field, MGI South Queensland
Closing night was held at the Museum of Contemporary Art Harbourside. The formal event celebrated the conclusion of the AGM and guests again enjoyed the views of Sydney Harbour, the Opera House and Harbour bour Bridge. A highlight of the evening included various performances from pianopiano vocal entertainer Scot Finnie and the Flair Bartenders heated up the party with a flaming cocktail show and delicious cocktails. It was truly a great event which I am sure manyy took away fond memories. The AGM represented a great opportunity to network with MGI members from around the world and strengthen relationships for future business opportunities. The next International AGM will be held in Chicago.
The launch not only involved media activity but members of the MGI Australasia Executive Committee also met with State and Federal government key stakeholders to brief them on o the main findings of the survey. These presentations were well received and have provided an opportunity for MGI to strengthen existing government relations. If you would like to read the results of the survey go to www.mgiaust-survey.com survey.com or for the link to the AppStore for the iPad app or to the download centre for the flip book MGI GOES SOUTH FOR FAMILY BUSINESS Written by Naree Brooks, MGI Melbourne Des Caulfield and Angela Robins, MGI Adelaide along with Gary Douglas,, MGI Melbourne and I, represented MGI at the recent Family Business Australia National Conference held in Hobart at the end of August. Despite the chilly weather around 400 family business owner delegates and their families from around Australia ustralia gathered at the Hotel Grand Chancellor for three days of networking and education on issues impacting family business owners. 7|Page
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MGI was an “Advisor Sponsor” for the third year in succession. This meant that there was an MGI booth to promote MGI solutions for family businesses along with sponsorship of David Smorgan’s, from the well known Melbourne based Smorgan family, key note address at the conference. Entitled Family business – a model for the future David gave an interesting address about the end of the Smorgan family dynasty in the early 1990s and the difficulties that the family encountered in breaking up their family business companies. He extensively quoted from MGI’s recent survey in his address and encouraged family owners to take action in addressing the interactions of between family members and the business to preserve the family business longevity.
RECORD TURNOUT FOR SOUTH QUEENSLAND BREAKFAST Written by Anne Stubbs, MGI South Queensland To ensure maximum exposure for the launch of The MGI Australian Family and Private Business Survey 2013, the team in South Queensland teamed up with AMPLIFi Governance to host a breakfast event in th Brisbane on 25 July. The event was a resounding success with around 100 guests joining us bright and early to hear the results of the survey and join the discussion on the key themes. On a glorious sunny Spring morning, (justifying our status as the Sunshine State!) guests enjoyed breakfast with stunning views of the Brisbane River at MODA Events at Portside, Hamilton. Having assembled a great panel of speakers who all had direct experience of many of the issues highlighted in the survey, Grant Field presented the survey results and hosted the panel discussion. The panel included Susanne Bransgrove, Group MD of AMPLIFi Governance and Nick Bloor who is State Chairman of the FBA as well as CEO of his own company, Technigro. Karen Simpson from print and graphics group, Tennyson along with Bruce White, General Manager of White Industries completed the line-up.
Our stand at the FBA Conference
We certainly had plenty of items to encourage delegates to our stand – the yo yos which proved such a hit last year and the opportunity to participate in a family business survey about their government concerns. Unfortunately due to the location of the exhibitor stands in relation to the rest of the conference facilities none of the exhibitors were visited by as many delegates as they would have liked. While this was somewhat disappointing, we did get the opportunity to meet some family business owners at our booth and at the various networking functions. All of this assisted in getting MGI’s profile out as a lead advisor in the family business area.
The association with AMPLIFi came about as a result of Grant’s membership of this Group and the relevance of the survey results with the services that they provide. AMPLIFi help family and private businesses establish a board of directors with an emphasis on appointing a suitably qualified independent director to the board. Given that one of the key themes of this survey is the low adoption of good governance practices by family businesses, we felt the opportunity for a joint venture with AMPLIFi was too good an opportunity to pass up. In addition, members of the Queensland Government’s Small Business Department were also in attendance to hear first-hand the challenges currently being faced by many local businesses. We enjoyed an incredibly interactive session with lots of input both from the panel of experts and the audience members. As well as discussing the challenges highlighted in the survey, there were also lots of inspiring stories of how businesses had overcome these issues. 8|Page
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The feedback was universally positive with a number of audience members spontaneously thanking MGI for conducting the survey and delivering an event that gave businesses a ‘voice’ to discuss the issues i that so many could relate to. A number of attendees commented that we had ‘nailed it’ in terms of our understanding of the challenges that family and private businesses face.
Richard to converse with the client's Managing Director and Financial Controller. ontroller. As a result of Richard's work, positive feedback was received and additional work secured. Richard is a valued member within his team and we wish him success with completing his CA studies and career at MGI Melbourne.
As well as the immediate benefit of the positive exposure for the survey and nd MGI, the event also led to a number of new leads with several requests for a free consultation at the event as well as a boost to our marketing database. We generated around 60 new contacts from our association with AMPLIFi as well our promotion of the event on LinkedIn and Eventbrite.
ANOTHER AMAZING MILESTONE Written by Maree Caulfield, MGI Adelaide 2013 marked a centenary of celebrations at MGI Adelaide, with both Steve Bray and Peter Whitehead celebrating 30 years’ service to the firm and Des Caulfield achieving 40 years!! RIGHT STUFF WINNER Written en by Brad Savage, MGI Melbourne Richard Batchelor from the Melbourne office is the latest recipient of the “MGI Right Stuff”. Richard commenced with MGI Melbourne in February 2012 2 and is currently undertaking his CA studies and works predominately within the business services division of the firm. Richard was nominated for the “Right Stuff” as he performed at a level beyond what is expected of someone with his level of experience on a recent assignment. Richard undertook a corporate advisory assignment with one of the principals,, Joff Macleod which entailed the creation of a complex financial model for a new client. The assignment required
In July the Directors of the firm joined Steve and Peter for celebratory dinner, ner, recognising their contribution to the firm over the past 30 years. Noting that 40 years of service at one firm is something that few people will achieve in their lifetime, a special event was held to acknowledge Des’ contribution and service over this thi period. The firm hosted a dinner in the iconic Chloe’s Restaurant and MGI Adelaide directors’ and managers were joined by Des’ family and the firm’s founding partner Alan Killmier and his wife. Both Rob Lanzilli, the current Managing Director, and Alan Killmier, spoke during the evening about Des’ contributions to both MGI Adelaide and to the national and international network of MGI.
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AND CONGRATULATIONS ON ICAA/CPA/NZICA ICAA/CPA MEMBERSHIP MGI Sydney
Lisa Bovill
MGI Auckland Sarah O’Connell (left–right): Robert Lanzilli, Des Caulfield and Alan Killmier
WELCOME TO MGI.....
Editor’s Note If you would like to provide any feedback or ideas for further articles, please contact Christine Greiser: (03) 9521 3000 or christine.greiser@mgimelb.com.au
MGI Adelaide
Debra Venus Michael Haaren
MGI Melbourne
Amina Ali
Parkinson (MGI in Perth)
Olivia Peters Jake Coburn Nathan Caccano
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