Indholdsfortegnelse for December 2017 i NZBusiness+Management

As we’re about to ‘close shop’ on 2017 and welcome in a whole new trading year, it’s only natural that we take stock of our lives and businesses and consider the challenges that lie ahead. And let’s be brutally honest here – the future for the citizens, and business owners, of planet Earth has never looked more daunting. I don’t need to remind you of what the challenges and risks are – increasing terrorism, climate change and the natural disasters it brings, an unpredictable US president vs the DPRK, the war against pollution, the fight against prejudice, inequality, poverty – it seems that we are battling on every front. Businesses also have major issues to deal with. I’m not referring to the inevitable changes that will come with the new…

We are living in the cyberage and the use of information technology presents some real security challenges for businesses today. Yet still, 88 percent of Kiwi business owners are unaware they can insure their business against cyber attacks. This is putting their livelihoods and business reputation at risk. Cyber crime is increasing and will continue to do so as hackers make use of the weaknesses and loop holes in operating systems and organisations to destroy or steal data and other important information. Ransomware – malicious software designed to block access to your computer system until a ransom is paid – is the fastest growing cyber threat of all, targeting users – from small businesses through to corporates. Attackers are demanding more and more from their victims with the average ransom…

MYRIAM JENNI BELIEVES the Sharing Economy has a deep economical and social impact. The All Space directors are passionate about the shift it creates from ownership to access. “Co-sharing leads to a more sustainable way of resource usage,” she says. “The sharing economy offers huge opportunities for reinvention and innovation in traditional industries. It opens up a new level of creativity. “For us, the Sharing Economy Association is an opportunity to join forces to create a supportive network, influence traditional industries, promote the collaborative economy to the public and make a difference. “We’d like to share our story, both highs and lows – inspire and be inspired by others.” Elena says it’s a misconception that the Sharing Economy mostly targets young tech savvy people. “Interestingly the 40 to 60 demographic…

“The key is getting members to accept that they must put in the time and effort in order to make the network work for them...” When Bartercard New Zealand set up operations on November 1st, 1992 – a year after the concept was founded in Australia – there was no Internet, no Sky Tower, mobile phones were as big (and heavy) as a brick, and MMP had yet to arrive. On November 3rd, 2017, Bartercard New Zealand’s 110 staff, across 13 offices, enjoyed a celebratory lunch to toast the company’s achievements over the 25 years. Some of the remarkable stories of customers who’ve grown their business using the country’s first ‘digital currency’ (aka trade dollars) network were included in the day’s celebrations. Bartercard New Zealand CEO John Scott, who has…

“I would caution you against rushing into diversification. Think about your existing customers first and whether you can get more of those or somehow serve them better.” WHEN TIMES ARE tough, it’s common for diversification to come to the top of a business’s strategic agenda as a way to mitigate risk and spread revenue. It commonly brings with it a hope for new sales. However, it also can bring a very real challenge if not considered properly, and that is the cannibalisation of your current market and a potential breakdown of your marketing channels. Let’s consider the two most popular diversification scenarios – product diversification (taking a new offering to your existing customers or target market) and market diversification (developing and launching a new product or service that enables you…

DIANA JONES has been an executive coach to leaders for 30 years and her new book Leadership Material: How personal experience shapes executive presence is billed as a must-read for any leader who understands that it is the personal relationships and interactions they promote and support which are their most powerful organisational tools. The book’s blurb says most leaders take great care to separate their personal qualities from their professional identity but Jones argues this is unwise. She says the soft side of leadership – empathy, compassion and authentic communication – is derived from personal experience and are both powerful and essential to inspiring others and achieving results. The book provides case studies, example and practice sessions from Jones’ work with current and aspiring leaders. To go into the draw…

THE GAP BETWEEN CEO compensation and worker income is widening, according to University of Otago research. University of Otago Business School accountancy and finance researcher Dr Helen Roberts’ longitudinal study shows New Zealand CEO compensation is increasing in real terms - almost five times faster than worker income in New Zealand. A media release says that in real terms, mean total CEO compensation is up 114 percent in 17 years, while mean real worker income is up 26 percent, confirming there is a widening gap between the CEO’s income and that of their workers. CEO’s are now paid 30 to 50 times more than the average wage; the average New Zealand salary is $60,000. The annual median waged income now is $44,886, compared to $29,897 in 1997 (from the 2013…

When something goes badly awry within a company, it tends to be someone in the senior executive team who falls on his or her sword. Globally there are likely to be hundreds of examples of executives who have, rightly or wrongly, taken the blame for a failure within a business or business unit. So perhaps senior executives need to be thinking not ‘what if’ something goes wrong, but ‘when’ might something go wrong and be prepared for the worst-case scenario. Author, director and former senior executive Bob Weir is in the throes of writing a book about company failure and has extensively investigated what happened at Solid Energy, South Canterbury Finance and Pumpkin Patch as well as up to 1,000 small companies. His investigations led him to look at the…

THE NUMBER OF people who work remotely has been rising steadily, about four percent in the last four years, according to an American survey. There is increasing pressure on companies to provide this option to employees, even for as little as a day or two per week. More businesses in some industries have begun allowing people to work remotely, particularly within transportation, IT, design, entertainment and media, according to a Gallup survey earlier this year. Remote workers enjoy the benefits of not having to deal with traffic, co-workers, or the boss in immediate proximity. The latter is what concerns most stakeholders: without direct supervision, can an employee be trusted to do their job? Other concerns include managing off-location employees, data security, and a lack of communication and cohesion with the…

OVER THE PAST few months I’ve been exploring simplification and minimalism and applying a number of associated techniques to my life. Right now my wife and I are in the middle of a minimalist challenge (www.theminimalists.com/game/) which will result in both of us removing 450 unnecessary/unwanted items from our home (clothes; electronics; old tools, etc. etc.) by the end of the month. One of the immediate benefits I’ve noticed since I started is a feeling of ‘space’ and lightness that comes from knowing you are removing things from your life that aren’t really adding any real value and are taking up valuable physical and mental space. Having seen the benefits coming through in my personal life, I was prompted to think about what the parallel would be in the leadership…

THIS MONTH: RETHINKING CREATIVE PARTNERSHIPS TO BUILD BRANDS DEAN PROUDFOOT, DAVE WAY AND PHILL SMALL ANSWER SOME PRESSING QUESTIONS AROUND WHY THE RIGHT CREATIVE BUSINESS PARTNERSHIP COULD BE YOUR BRAND’S TICKET TO SUCCESS. WHAT BUYERS SHOULD LOOK FOR IN A BUSINESS BUYER BEWARE. IT’S A PHRASE THAT BUYERS OF ESTABLISHED BUSINESSES SHOULD BE PARTICULARLY CONSCIOUS OF. CRAIG HUDSON EXPLAINS THE PLUSES AND THE PITFALLS. TIME MANAGEMENT PRACTICES TO GROW YOUR BUSINESS “HOW CAN I MANAGE MY TIME BETTER?” IS A QUESTION THAT CROPS UP WITH ALARMING REGULARITY. LUCKILY THERE ARE STEPS ENTREPRENEURS CAN TAKE TO PREVENT A PRODUCTIVITY GAP FROM OPENING.…

ENTERING VARIOUS BUSINESS AWARDS allows Mike, Helen and their team to step back and look at the business in an objective way. “We’re learning how to celebrate the milestones and wins but we still get so caught up in working harder and doing better,” explains Helen. “So being forced to consider what it is we have achieved for an award entry is a really positive process for us. “As well as being a great process to go through, it’s an excellent opportunity to give our team the feedback and recognition they deserve for the energy and commitment they pour into our business. “We want them to feel like they’re a part of something that matters and that we wouldn’t be here without them. “The David Awards are about small businesses…

TALKING RECENTLY WITH an accountant friend, we got on to the topic of managing payroll. I asked him if it’s really as complicated as it seems. “Oh yes,” he laughed hollowly. “We have about 40 people in our practice, and the wife of one of our directors was working for us in a specialist area. After she had been with us for quite some time, it was discovered that her holiday pay entitlement had been calculated all wrong.” If a sizeable firm of chartered accountants can screw up, you can see why small business owners often struggle. Payroll is a hot topic in franchising at the moment following two investigations by the Labour Inspectorate of the MBIE. In the first, companies which operated 17 Caltex franchises around Auckland were found…

THE MAINSTREAM MEDIA (MSM) may still be hung up on the ‘loss’ incurred by the party getting the most votes in the general election, but New Zealand, like an increasing number of countries, has a ‘grown-up’ electoral system and recognises that a majority of voters expressed a desire for change. Furthermore, some in the MSM seem to have taken leave of their senses, forgetting that New Zealand almost never has four-term parliaments and in a few cases forgetting ‘economics 101’. I was particularly diverted by a commentator’s volubility on the damage that might be done by increasing the minimum wage. Clearly, he is unaware that when low-waged people have discretionary income they will spend it – increasing demand and stimulating the wider economy. As this is not a political publication…

MORE THAN HALF of New Zealand employers value the experience of their workers over the age of 55, according to new research. The latest New Zealand Diversity Survey found that 61 percent of organisations are perceived to value the most senior members of their staff and a third offer flexible or reduced hours and the opportunity for their aging workers to be a mentor. The survey is conducted twice a year by Diversity Works New Zealand and chief executive Bev Cassidy-Mackenzie says it’s also encouraging to see that the number of organisations with no specific strategy for engaging with aging workers had dropped from more than 70 percent a year ago to just 32 percent last month. “Government figures predict that by 2020, a quarter of the New Zealand workforce…

Komal Mistry, the general manager at Fonterra Ventures, has been awarded the 2017 Young Executive of the Year Award, sponsored by the Institute of Management New Zealand (IMNZ) and Eagle Technology. The other finalists were Ed Hyde, CEO at Spark Ventures and Sasha Lockley, head of operations, Avanti Finance. The award is part of the Deloitte Top 200 Awards and the Young Executive of the Year Award was judged by Mark Allan, the CEO at Eagle Technology; Liam Dann, the New Zealand Herald’s business editor at large; Steven Naude, the CEO at IMNZ and ASB Bank’s James Bergin who was the Young Executive winner in 2016. Steven Naude commented that Komal Mistry, who is a qualified lawyer and an accountant, combines great intellect with energy and determination. “She has taken…

A FEW YEARS back I worked with a delightful client whose family would tease her about looking like “Angela Merkel”. Every day she would wear a brightly coloured jacket over a simple outfit of black pants and a black top. It was certainly easy, but although I’ve previously mentioned uniforms in this column, if you work in an environment where you don’t need to wear one it is a bit sad to repeatedly wear the same look. I often work with clients who are a bit ‘stuck’ in the way they dress, choosing the same styles day after day with perhaps the only change being the colour – and occasionally not even that. Interestingly, in many cases these people are totally unaware of their sartorial duplication. The challenge is that…

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Business founders bring their whole self to their businesses, which is what makes those businesses unique. But the consequence for founders is that the business often takes a toll on their personal lives, their relationships and their own well-being. Many things weigh heavily on founders. The long hours required, especially at the beginning, and the uncertainty of business when times get tough. The relentlessness that often comes when the buck stops with you and perhaps, most importantly, the knowledge that other peoples’ livelihoods are dependent on you. This is why we believe in first working with founders as people, and then working with them on their business to make sure the business serves their needs, rather than them ending up potentially enslaved to their business. We established TBC to enable…

IT’S THAT TIME again. Consumers are waking up from their ten-month hibernation and brushing the dust off their wallets, ready to spend it all in a few manic weeks. Time to hire extra staff, open the store up late and embrace the madness that is Christmas – a make or break time for retailers. WHAT’S THE BIG DEAL? For those of you who are already feeling a bit overwhelmed by the Christmas rush, here’s a quick refresher on why it’s so important. For most businesses, between a quarter and a third of annual revenue is earned in the six weeks leading up to December. Consumers are busy and stressed – they crave convenience and simplicity and will be ruthless in their expectations, given the heightened competition. You’ll likely be bringing…

Firstly, I do enjoy reading the various articles, updates and views expressed in Management so please keep up the great work. I liked that the role of company directors was covered in the last edition and agree that there are many paths towards becoming an effective director and understanding appropriate governance. I was reminded about the importance diversity of views and director positions recently when interviewing Kirsten Patterson, CE at the Institute of Directors, when she emphasised the benefits of having a gender diverse board. ( https://www.freshfm.net/ Programmes/Programme-Details.aspx?PID=22f0d085-f37d-4ef 3-a88f-9cb29d9a6cf7 ). So it was a surprise and somewhat disappointing that the only two directors (Mark Cross and Jonathon Mason) profiled in this article were males of somewhat similar backgrounds. In fact, Mark points out that…

A NEW GUIDANCE paper has been released to help directors better understand and meet their obligations when it comes to financial reporting. The paper, called Directors Responsibilities for Financial Reporting: What You Need to Know, is designed to help directors avoid the pitfalls of financial reporting. The work is a joint publication between Chartered Accountants Australia and New Zealand (CA ANZ) and ACCA (the Association of Chartered Certified Accountants). Liz Stamford, CA ANZ’s general manager, policy, said it was an important tool for directors working across the Asia-Pacific and Europe. “Directors have a number of requirements. First and foremost, they have a duty of care and must give clear information about financial statements to investors and others,” Stamford said in a media release. “This paper is an easy to follow…

ARCHITECT ANDREW PATTERSON has been awarded the New Zealand Institute of Architects 2017 Gold Medal – the highest individual honour an architect can receive in New Zealand. Patterson is the youngest recipient to ever receive this award, given in recognition for the outstanding and continued contribution he has made to the built environment across New Zealand. His work includes the Len Lye Centre that has transformed New Plymouth; the Geyser building that was New Zealand’s first sustainable 6-star green building; the Michael Hill Golf Clubhouse and the AJ Hackett Visitor Centre which are both places that wrap the visitor in a unique kiwi experience. A media statement from Patterson Associates says that Patterson’s work clearly demonstrates his philosophy that our built environment needs to match the beauty of our natural…

ADDRESSING THE GENDER pay gap and inequity generally takes courage according to Simpson Grierson's HR director Jo Copeland, who was awarded a Gold Award at the YWCA Equal Pay Awards, along with Lion NZ. “It is time for us all to ask what the gap is in our organisations, speak up, ask your executive team what they are prepared to do to fix it and take action,” she says in a media release. She says the firm takes pride in the fact it has had a zero percent gender pay gap for the last three years, thanks to the partnership, driven by chair Kevin Jaffe. “It is totally unacceptable in 2017 for there to still be a pay gap in New Zealand. "While it is great that the pay gap…

“Creativity isn’t solely for artistic pursuits, it’s for everyone. Today’s world calls for creative leaders. Being creative stimulates lateral thinking and drives innovation. I like to think of it as helping build the imagination economy. ” Recently I had the pleasure of catching up with Denise Moller, our guest author and IMNZ Alumni. Denise talks about her experience of coming back to work after having a baby and has some valuable tips and insights for both employers and new working mums. It got me thinking about what makes mums great leaders, and what I aspire to instill in my kids to make them good humans. I’m not suggesting for one minute dads don’t make great leaders too. They do. I am reflecting on my role as a mother, and my…

IT'S HARD TO believe that 2017 is almost over. The year seems to have flown by and before we know it we'll be turning over the calendars to 2018, setting a new range of personal and professional goals for the months ahead. Of course, the new year is always rife with new trends and influences. Here are two of the top issues that might affect trends in the employment and remuneration sector. THE IMPACT OF THE NEW GOVERNMENT With Winston Peters deciding to put Jacinda Ardern into power, there could be a number of effects on the employment and remuneration sector. While the coalition is still in its infancy, certain polices have business leaders ready to respond. The major pressure point is around increasing the minimum wage, with Labour lifting…

WITH NEW PRIME MINISTER Jacinda Ardern having promised relentless positivity while on the campaign trail, and former Prime Minister Bill English proposing to be a positive force while in Opposition, one could be excused for thinking positivity is something new and exciting. And that positivity works to strike a chord with followers, and to attract votes. What happened to negativity, criticism and cynicism? Can leaders and managers afford to be negative, hypercritical and cynical anymore? What about when the situations at hand can be perceived to be not so positive? Is it all about ‘put on your positivity pants and get on with it’? Negativity, I learned about pretty early in my career. Try being tired and grumpy teaching a class of thirty 12-year-old girls. You’ll get grumpy back times…

As someone who works from home, and has done so for many years, I relish the freedom that it gives me to organise my day and my work around my life and my other responsibilities (thank you Cathy, our publisher). Personally, I believe that working at home makes for a very productive day. For a start there is no time-consuming commute; there are no distractions and you can just get on and do the job, knowing if you need help or advice colleagues are a mere email or phone call away. I often wonder why more organisations aren’t more open to this type of flexibility. In our hyper-connected world I would think that almost anyone working in an office could work from home, at least part of the time, and…