Indholdsfortegnelse for May 2019 i NZBusiness+Management

Welcome to our May issue – one that deserves to be branded the ‘diversity issue’ because we really do have a diverse selection of stories for you this month. Standouts include our inspiration piece on Grounded’s Ben Grant and Josh Kempton – who are on a mission to win the war on plastic waste with their home compostable packaging products – and Porana Overlocking’s Tim Lewin, who has built a thriving business despite living with a major disability. For the cover story we examine the remarkable world of Zuru’s Nick Mowbray – whose journey has involved countless twists and turns, highs and lows and a potentially debilitating illness – not-to-mention some rather high-stake lawsuits. It seems that the international toy marketplace is no place for the faint-hearted! If you’ve ever…

Living on the opposite sides of the world hasn’t prevented Amy and Paula Sutton starting up a successful business. The sisters, whom their parents describe as “good little buddies” when growing up, are busy building an online artwork business that features iconic New Zealand images. The twist is that Paula is based in the Waikato town of Te Awamutu and Amy’s living in the United Arab Emirates (UAE), working with the Abu Dhabi Government. Separated by large distances for most of their adult life, AMPA Designs is now bringing the two sisters much closer together. “Amy is much more the free spirit and I’m the more structured one who needs to know where we are going and what we are doing,” explains Paula, “and this is still the case now.…

Let’s start with ‘what is a Featured Snippet?’ Featured Snippets are search results which give answers to people’s questions directly within the Google search results page, without the user having to click through to an actual website. Google decides what will be shown, and extracts that content from a webpage. The featured snippet will include some content, a link back to that page, a page title, and a URL. There are five types of Featured Snippets – as follows: Paragraph Snippets – these make up the majority (about 80 percent) of the snippets that appear in search results. With a paragraph snippet, Google extracts some text from a page in an attempt to answer the searcher’s query: Numbered List Featured Snippet – These results often take the searcher through a…

IF YOU have a successful business of any kind, then looking at the success of homegrown franchises like Columbus Coffee, Green Acres, Harcourts, Paramount and Carpet Court can be inspiring. These brands testify to the success that can be achieved through the franchise model in very different industries. But when you decide to investigate franchising your own business, where do you begin? It’s important, because how you start can make a very big difference to what you eventually achieve. Here’s a summary of three very different approaches to franchising your own business based on three emails I received. These emails pretty much sum up the three most common approaches to franchising your business. APPROACH #1 The first email read as follows: “I am trying to produce a franchise manual. I…

HAVING JUST returned to Europe from New Zealand, leaving on the day of the frightful mass murder at the Christchurch mosque, it is interesting to reflect on New Zealand’s population growth and its impact on the SME community. Perhaps I should start by saying that since 2015 when my wife and I migrated from New Zealand I have been back five times – all bar one trip were for extensive periods. This last visit involved over 4000 kilometres of road travel which covered Auckland, Northland, Central North Island, Wellington and Taranaki. Our journey was, for the most part, outside core school summer holidays, but it was the holiday season. Our first impressions this time (our last visit was May/ June 2018) were first, high prices for everything, and secondly, the…

Spark’s decision earlier this year to pull advertising from YouTube because of inappropriate content targeted at children, is a timely reminder for senior management teams to put in place risk management strategies for just such an eventuality. CEO of search marketing agency, Insight Online, Kim Voon, says in a media release that recent research – the How Brands Annoy Fans study – in the United States, Canada and the UK revealed that half of consumers would abandon brands whose ads appear alongside objectionable content online. In another study, the Reuters Tomorrow’s News 2018 Report based on a survey of 1,587 executives around the world, 75 percent of executives have seen brands advertising alongside objectional or unsavoury stories and videos. Seventy-seven percent agreed that such incidents can damage the brand. “I…

New research based on interviews with 45 top CEOs across the New Zealand business spectrum is described by its author as the collective wisdom of CEOs about the reality of managing at the top in today’s environment. The study, undertaken by Dr Ann Hutchison, senior lecturer at the University of Auckland, and remuneration and performance specialist, Strategic Pay, is still being finalised by Hutchison but what is becoming clear from the interviews conducted with CEOs “is that what CEOs want to be happening is not quite where they are at,” says Hutchison. CEOs want their top team to be a fully integrated unit, that works as one cohesive team and often what they have got is a lot of silos, where people fall into a financial, HR, sales or marketing…

In New Zealand, we have a long list of skill shortages that need to be filled. We need more engineers, accountants, IT professionals, scientists, teachers, lecturers, nurses and doctors. We also need bakers, carpenters, bricklayers, electricians and mechanics. As Immigration NZ says, “some skills are in chronically short supply.” When I read the skill shortage lists, what immediately springs to mind is the number of resettled Kiwis who arrived in New Zealand at the end of their refugee journey. Despite arriving in New Zealand without material resources, they bring a wealth of skills, expertise and qualifications from their home countries which match many of these skill shortage areas. Approximately 30 percent of former refugees arrive in New Zealand with professional qualifications, and many go on to obtain degree and post-graduate…

RECENTLY, as I waited for the phone to ring for a pre-arranged call, I found myself skimming the weekly update email to staff, checking numbers on a budget and answering a couple of staff queries while prepping for a post-work meeting, all the time feeling quietly thankful several other meetings had been cancelled from my diary that day. It’s a very normal part of today’s work environment to be cycling through multiple tasks and thought streams in quick succession. Often this rush can feel invigorating but sometimes it’s just plain overwhelming and stressful. While we might think all this juggling is helping us manage multiple, conflicting demands, the micro-seconds as we switch tasks, recalibrating priorities and changing focus, has been said to amount to a 10-point drop in our IQ.…

CREATING A MARKET WITHIN A MARKET IT’S ONE THING TO CREATE A NEW SERVICE OR PRODUCT, AND ANOTHER TO CREATE A MARKET FOR WHAT YOU’RE OFFERING. WELCOME TO CHRIS BUHMANN’S ENTREPRENEURIAL JOURNEY. INAUGURAL FAMILY BUSINESS CONFERENCE ANNOUNCED FAMILY BUSINESS CENTRAL IS TO HOST THE FIRST CONFERENCE FOCUSED ON THE UNIQUE NEEDS AND CHALLENGES OF FAMILY OWNED BUSINESSES AND FARMS IN NEW ZEALAND. THE FUTURE OF WORK IS ABOUT RELATIONSHIPS, NOT TECHNOLOGY AS TECHNOLOGY BECOMES MORE UBIQUITOUS A SHIFT IN VALUES IS OCCURRING, WITH MANY OF US INCREASINGLY PRIORITISING ANOTHER FORM OF CONNECTEDNESS – HUMAN RELATIONSHIPS.…

It doesn’t matter what sector your business operates in, Ben and Josh say it’s crucial to reduce and manage your carbon footprint. They use a framework from the Ellen Macarthur Foundation as a guideline: 1. Re-use model applied where relevant; reducing need/ reliance on single-use plastics. 2. All packaging 100 percent reusable, recyclable, or compostable. 3. All packaging re-used, recycled or composted, in practice. 4. Businesses have a responsibility to contribute towards end-of-life objectives. 5. The use of plastic is decoupled from the consumption of finite resources. 6. All packaging free of hazardous chemicals. For more go to: https://www.ellenmacarthurfoundation.org/…

SO YOU’VE GOT a good share of your market. Your business is ticking along nicely, revenue is increasing, and profit is too. You’re feeling pretty great about your success so far. Then along comes an overseas competitor, with big buying power, a hefty marketing budget, and a desire to take as big a market share as possible. Suddenly, you’re up against someone who is able to significantly undercut you on price – and is doing so right from the beginning. What do you do? At this point many businesses begin to panic – they start to lower their prices, trying to play the same game as their new competitor. They find ways to cut costs in order to enable these lower prices, whether that’s by cutting staff benefits (or staff…

Like the vast majority of people, I was profoundly affected by the terrorist acts in Christchurch on March 15. Now, a month on, I want to explore a few things I think we can learn about leadership from Prime Minister Jacinda Ardern’s very first responses to those events. My hope, also, is to prompt further reflection on what leadership role we can each play in our own sphere of influences, better to help ensure our future is one free from such hateful acts and beliefs. It’s hardly an exaggeration to say these events constitute a crisis for New Zealand, both in terms of the government response and, more enduringly, the values and beliefs that underpin our society. It is in times of crisis – especially crises that carry with them…

The new breed of leader in terms of style is less about command and control and more about equality, mutual collaboration and vulnerability. There were a lot of comments in the interviews with CEOs around, “I don’t know everything,” “I don’t manage them,” “I am empowering them.” The study also points to: • No more silos. • Constantly evolving teams. • Regular restructures. • Command and control gone. • Less appreciation for technical expertise. • Vulnerability. • Empowerment. CEOs and/or chairs were interviewed from the private sector (12 companies); the public sector (13) and 20 not-for-profit organisations.…

NZ’S GRITTY BUSINESS BRAVERY AWARDS RETURN THE DAVID AWARDS are back in business – returning in 2019 to once again recognise the unsung heroes of New Zealand’s home-based and small businesses. After many years under the excellent stewardship of Bizbuzz.co.nz’s Heather Douglas, the popular 100 percent online-driven awards took a break last year, but are now back accepting entries (from May 1st through to mid-August). There are new sponsors, including Richard Conway’s PureSEO – supreme winner of the 2013 David Awards. He’s thrilled to be part of the team behind this year’s awards and one of the sponsors putting up great new prizes. The David Awards are all about celebrating those business owners whose sheer grit, courage and ingenuity place them firmly at the forefront of entrepreneurship in this country.…

Customers of Porana Carpet Overlocking on Auckland’s North Shore are in for a treat in May. It is New Zealand Sign Language Week early in the month and Porana Overlocking’s owner manager, Tim Lewin, plans to offer his customers free lessons in sign language when they visit his business. Tim and his wife Sam, a co-owner in the business, are both profoundly deaf and that brings with it a set of challenges different to what most business owners have to address. And the couple are not alone. The National Foundation for the Deaf website says that 880,000-plus New Zealanders live with a hearing loss and that 300,000-plus New Zealanders aged between 20 and 64 have a hearing loss. Tim and Sam bought the eight-year-old business in November 2017 from family…

As the recent AI-DAY Conference in Auckland emphasised, artificial intelligence (AI) is already playing a vital role within the business community in terms of boosting business efficiency and productivity. However, unless you attended the two-day event you may still be somewhat in the dark about what the technology can deliver; there is still confusion and misinformation out there. One thing is for certain – the technology is advancing rapidly. The question is: how long can you delay your business getting on board? As Ben Reid, executive director of New Zealand’s AI Forum, an organisation that brings together the AI community, points out: to understand how the technology will impact on us all “you’ve got to separate the science from the science-fiction”. First you must understand exactly what AI is and…

1. Be strategic about choosing which markets you go into. Then persevere and work hard. 2. Once in, keep your long-term goal in mind, but take small steps towards it and learn as you go. Constantly adjust your market strategy. 3. Long-term, it’s key to ensure you have a clear channel strategy, and therefore get your pricing strategy right from the start. 4. Choose fewer markets and do them better – for example, that could mean being in multiple channels in each market. Go deeper rather than wider.…

THE SECRET to success for any business is its people. Hiring the right people from the start requires careful planning, research, patience, and understanding exactly what you are needing from your role. We all intend to make great recruitment decisions that put the right pegs into the right holes. It makes good business sense to do so, as the cost in recruitment and training a new team member is significant. However, sometimes we get it wrong and overlook something in the process, or perhaps hire someone who has substantially oversold their abilities. The success of your people is so critical that it’s important to make relatively swift decisions if you have made a mistake around recruitment. This is where trial periods can be of real benefit to a business, but…

IN THE NEXT look at our “8 levers of sales growth” series we tackle the decision between winning more valuable clients (lever 2) or winning a higher volume of clients (lever 3). If your business is in the fortunate position of being well established and in demand, you might want to consider pulling lever 2, which will ultimately make your business more profitable for less effort. Think about your most valuable client currently; the one who utilises most of your services, spends well and is relatively low maintenance. It makes sense that if you want to grow your business (and your profit!) you’d focus on winning more clients like this one. Simple, right? But, how do you actually do that in practice? 1. Map out the elements your best clients…

Some 600 people turned out for the Institute of Directors (IoD) annual leadership conference in Auckland in early April and a range of local and international speakers meant the conference provided some great learning opportunities for existing and aspiring directors. The first day saw The Rt Hon Sir John Key discuss his journey to become an independent director and journalist John Pomfret offer insights into China and US trade relations and the implications for the rest of the world. The day also included a stimulating panel discussion on export and trade with great insights on Brexit from the British High Commissioner Laura Clarke and guidance on where New Zealand is at, and heading to, in terms of trade agreements from Vangelis Vitalis the Deputy Secretary Trade and Economic at MFAT.…

Richard Threlfall, the global head of infrastructure at KPMG, had one very strong message while in New Zealand for the Institute of Directors’ Conference in April. That message is that the world is having an infrastructure revolution driven by the sheer amount of infrastructure the world’s growing population and the emerging middle classes in the Asian and African regions need, want and deserve. It is exciting, he says, because it is infrastructure that will help lift the world’s poorest out of poverty. And with more than 25 years’ experience in infrastructure policy, governance, strategy and financing, advising both public and private sector clients in the United Kingdom and overseas, Threlfall should know what he is talking about. On his whirlwind trip to New Zealand he told Management that [mind boggling…

I’VE RECENTLY been asked to work with a business owner in a creative field. He’s young, successful and driven and he’s been steadily growing his business over a number of years. More recently he has moved away from smaller clients to work with some of New Zealand’s biggest and he’s feeling both conflicted and challenged in his work wardrobe. Previously, he’s been comfortable in a fashionable, but very youthful, aesthetic of bleached-out, drop-crotch jeans, tee shirts and trainers but he has wondered if, because he was now meeting some of his new clients in a corporate setting, was this the right thing to do? His dilemma (and the reason he reached out to me for help) is that although clients know he is a creative and it is his own…

A GOOD definition of virtue signalling is from the Urban Dictionary: “To take a conspicuous, but essentially useless action, ostensibly to support a good cause but actually to show off how much more moral you are than everybody else.” CSR (Corporate Social Responsibility) is a large and growing part of corporates thinking. It often is also referred to as a social licence to operate. A definition from the Financial Times is that CSR is: “A movement aimed at encouraging companies to be more aware of the impact of their business on the rest of society, including their own stakeholders and the environment.” CSR can cover a range of issues including sustainability, diversity and inclusion, human rights, employment conditions including health and safety and many more. Organisations need to approach CSR…

It is always fascinating to talk to individuals whose work and background means they really do see the big global picture and have a very clear-eyed view of where the world is heading, in their particular sphere of influence at least. So it was illuminating to talk to global infrastructure expert, Richard Threlfall, from the United Kingdom who was in New Zealand on a fleeting visit to speak at the Institute of Directors' conference. He says that the infrastructure sector is going through something of a revolution and global population growth, and needs, mean that in the next six years infrastructure spend is going to grow by between US$6 trillion and US$9 trillion, with a good portion of it in our part of the world. I’m guessing we won’t be…