Indholdsfortegnelse for August 2023 i NZBusiness+Management

FROM THE EDITOR There have been watershed moments in the development of tools and technologies down through the ages, and here in 2023 we're witnessing the rapid advance in the latest of these. And it's a game-changer. I am, of course, referring to the arrival of AI or artificial intelligence, that field of computer science which means systems can perform tasks that usually require human intelligence, reasoning or recognition – think chatbots, robotics, software and algorithms. AI is fast invading many areas of our lives. Indeed, you've probably experienced AI in your personal and business life already without really taking much notice. AI technology's biggest claim to fame is being able to process huge amounts of information in order to understand and communicate like a human. Natural language processing is…

The recently launched Brave in Business e-learning series is a I new tool to help small business owner-operators to manage and improve their mental wellbeing. Made in partnership with MBIE, Spark Business Lab and The Institute of Organisational Psychology, the new tool is designed to support small business owner-operators in managing and improving their mental wellbeing. In today's challenging and ever-changing landscape where pandemics, inflation and weather events have disrupted businesses, it is crucial for business owners to prioritise their mental health and well-being. SME owners can watch these videos to get practical advice, learn from experts, and download useful tips and templates they can use every day. To access the tool go to: https://www.business.govt.nz/wellbeingsupport/brave-in-business-e-learning/…

Enterprising Kiwis are being given the opportunity to fast track their ventures from idea through to startup, thanks to an online education initiative backed by Callaghan Innovation and entrepreneur education platform Startup NZ. The initiative invites people with “scalable and high growth” business or social enterprise ideas to apply for scholarships that will see 60 successful applicants receive free admission to the Startup NZ entrepreneurs programme, an online learning hub that introduces new entrepreneurs to the basics of “lean startup” business building methodology. In addition to receiving immediate help navigating the tricky process of turning an idea into a feasible business model, on completing the programme participants will be connected with local startup hubs and accelerator programmes for follow-on assistance and investment if required. Startup NZ programme founder, Richard Liew,…

There are business owners who, no matter the market risks and economic challenges, always manage to punch above their weight; to achieve higher than average revenues and profits. On the other hand, many others just scrape by – essentially treading water. Either way, with everyone working on getting everything together for their end-of-year accounts, a lot of uncertainty remains out there, across the board, believes GoFi8ure's Lisa Martin. Business owners are still recovering from recent events, are definitely nervous about the future, and are not helped by rising interest rates, which impact on mortgages, etc. Will they be able to maintain the same level of turnover, particularly when their own clients are facing the same issues? “There's often a real problem achieving consistency of revenue, and maintaining control over expenses…

AI is revolutionising the HR industry and propelling SMEs into a new era of talent management. That's the view of Employment Hero CEO Ben Thompson. “By automating repetitive, tedious tasks, AI liberates HR professionals from manual processes and administrative burdens, enabling them to focus on strategic initiatives that truly impact employee engagement and make their business a great place to work,” he explains. Through intelligent algorithms, AI can identify patterns and anomalies in huge volumes of data, helping HR teams to identify high-potential candidates at a glance, Ben says. “Traditionally, they would have to sift through piles of resumes to find a great fit. Now, we've created tools that match great candidates with open roles in seconds.” AI also helps optimise workforce planning, and create inclusive workplaces. “The fusion of…

For Cathy Parker, owning a magazine publishing company was never high on the agenda early in her career. When she embarked on the journey with the purchase of NZ Company Vehicle and NZ Windsurfer magazines in 1993 she had zero experience. In fact, despite graduating from Auckland University with an engineering degree, her career background largely consisted of managerial and sales roles across both the alternative fuels and car leasing sectors. Looking to put corporate life behind her, purchasing both magazines seemed the perfect solution, particularly considering that windsurfing was her main hobby. “While I had no experience around publishing, I did possess sales, IT, HR, strategic planning and management skills, as well as a strong knowledge of both product areas — vehicles and windsurfing,” she recalls. Her passion for…

SALES & MARKETING Let's start with a thought experiment. Picture this: I've just handed you $100,000. Not in a suitcase. I just stood in front of you and physically handed you brick after brick of one-hundred-dollar notes, banded together. Cold hard cash. Stop thinking about that luxury trip to the islands; this money has to be used to grow your business. There are a few catches though. Once you run out, it's gone. Forever. No more money. So, every single dollar you spend must achieve a positive and lasting return. You have the full responsibility to choose how you deploy that money before it runs out. First you need to decide on your strategy. What is the specific outcome you want to achieve? • Who do you want your marketing…

There are some great phrases about at the moment that just seem to capture the feel of the times. One that caught our attention this month was “productivity paranoia” which our columnist Cathy Hendry (page 17) says was coined by Microsoft researchers to describe how leaders fear lost productivity from employees not working, when their staff are working from home, even though hours worked, number of meetings and other activity metrics may have increased. Another set of phrases that a few years ago, I would have been hard-pressed to imagine would feature in a business magazine are “biometric surveillance, emotion recognition and predictive policing”. These are just some of the areas the European Parliament would like to ban AI being used for, as we report in our story looking into…

A new report by The New Zealand Initiative documents the grounds for concern about the public sector's performance, calling for those in charge to step up to learn from betterperforming countries. The research note, titled Public Service Bloat – The Evidence, was written by Dr Bryce Wilkinson, Senior Fellow at The New Zealand Initiative. The institute notes that numbers employed have increased 28 percent in the last five years, spending has risen sharply, and the public service looks top heavy in well-paid managers and communications teams. “Yet outcomes are troubling in major government-dominated sectors such as crime-prevention, health, education, housing, and welfare,” it states. “On the evidence cited in the report, Australia outperforms New Zealand on many, but not all measures. And Australia is not a top performer.” It says…

Life expectancy increased from an average of 46 to 73 years between 1950 and 2019 and the United Nations forecasts further increases, estimating that global average life expectancy will reach about 81 years by 2100. Living Longer, Better: Understanding Longevity Literacy, a new World Economic Forum report, in collaboration with Mercer, a business of Marsh McLennan, explores how lengthening lifespans are reshaping how individuals view their working lives and retirement. The report offers recommendations for government and employers to ensure they are adequately supporting people in multiple stages of work and retirement. A statement from the WEF says the report highlights purpose and quality of life in addition to financial health and resilience – themes that are traditionally associated with retirement planning. Haleh Nazeri of the WEF says that when…

column REMUNERATION Three years on from the pandemic and the introduction of widespread remote working, the workforce is still very divided on the costs and benefits. In New Zealand, we are starting to see a shift back towards more in-office days, but is remote working really that bad for productivity? Apparently, it depends on who you ask. Most studies have shown that employees are more productive when offered flexible or hybrid working. In fact, prior to the pandemic, a study that featured in the Quarterly Journal of Economics found a 13 percent increase in performance for a group of call centre employees who were randomly assigned to work from home for nine months. There is also the added benefit of cost savings from not needing to commute into the office every…

column GOVERNANCE AI is definitely in the news, in fact you can hardly open a publication without seeing something about it. Like all new trends you need to be careful as it is highly likely your staff are already using it, even if you don't yet have any policies in place. I was discussing it with my 20-something-year-old daughters at dinner recently and they have both dabbled in it at work. One of their employers has some basic policies in place but the other does not. I have dabbled in it for my business as well. Some of the things you might want to consider at a governance level – or at least to ensure that management have considered are: Privacy issues: The tools such as ChatGPT and Bard require you…

High-profile entrepreneur Edna Swart is looking at significant overseas growth following a deal with Australia's sixth-largest retailer. The deal will see Swart's ed&i body products retail in selected Chemist Warehouse stores throughout New Zealand as well as their e-commerce channels – and is set to provide a platform for trans-Tasman export growth. Swart says her business operates under a social enterprise model, with tens of thousands of dollars being returned to charity annually. She says the company had a 245 percent increase in sales revenue in the last financial year and is targeting over $8 million in sales revenue by 2025. The new deal with Chemist Warehouse is set to provide export access into their Australian stores over the same period. Beauty is such a commoditised space that products need…

When Covid's lockdowns gripped the nation in early 2020, as was the case for most businesses the outlook became suddenly very uncertain for Tim and Mia Tracey. Pickle & Pie, their Wellingtonbased NYC-deli style business with its unique Rueben-style sandwiches, meat pies and delicious pickles, had become a firm favourite with Wellingtonians since opening its doors in 2018. During lockdown chef Tim found himself at home making bread from scratch, perfecting his Carraway-seed rye loaf in preparation for producing their own bread once the lockdown ended. They were unpredictable times for New Zealand's business owners, but Tim and Mia had no thoughts of slowing down or reining things in. “Lockdown was a struggle for us, as it was for the entire hospitality industry,” recalls Mia. “We gave our team some…

LEAD STORY Artificial Intelligence is like electricity. Just as electricity transformed every major industry a century ago, A! is now poised to do the same. So says Andrew Ng, founder of Google Brain and former VP of Baidu. It's hard not to agree with Ng's statement. The evidence is mounting Artificial intelligence is indeed a game-changer. It's shaping up to be one of the most significant technological developments of the 21st century. Many experts would agree too, and countless experts have had their say about Al's ongoing potential. And when you consider all the publicity that Al has been receiving in recent months, most noticeably around the capabilities of generative Al’ such as ChatGPT, then it's hard to argue against it. With everything else that's going on in our world,…

EMPLOYMENT MATTERS Those who work in the employment law space are realising the extent to which psychological complexities contribute to, or are connected to, many employment problems such as undesirable behaviour or conduct in the workplace, poor performance or disengagement. The two are, many times, inextricably linked. Causation, attribution of fault, and then negative outcomes (such as loss of a job) are often the focus of employment issues from a legal perspective. Yet the real underlying reason why someone has transgressed is often left untouched, and therefore likely to happen again. Employers must follow an investigation before they can decide if someone is at fault and before disciplinary action is taken. This makes sense because employers should avoid jumping to conclusions. However, at times the standard and complexity of these…

THE OPTIMISER Everything is going to change. Whilst we have been using AI within advertising platforms for many years, the launch of Chat GPT in November 2022 and the subsequent tsunami of new AI businesses since has launched this technology into the mainstream. As a marketing agency owner, it is business critical for both us and our clients to ensure we utilise the technology in a safe, effective, and secure manner. To this end, my company identified the world's leading expert in AI and marketing and engaged her to help us transition effectively. In May 2023, Google announced the beta launch of its new AI Search Generative Experience (SGE), available to US users who sign up for beta testing via a waitlist on Google's Search Labs. Despite not being based…

B Lab AANZ is the regional non-profit organisation (within the global B Lab network) that oversees B Corp Certification – a globally recognised standard and movement of business as a force for good, made up of almost 7,000 businesses globally. Within this network, 100+ Aotearoa New Zealand businesses are Certified B Corporations, including significant brands such as Kiwibank, Kathmandu, ecostore and Sharesies. To find B Corps and view their B Impact Assessment score and profile, see www.bcorporation.net/en-us/find-a-b-corp To become a Certified B Corporation, businesses must meet an 80-point minimum (out of approximately 200) in the B Impact Assessment, a holistic assessment of the business's impacts across five key areas: governance, workers, community, environment, and customers. Additionally, the company must embed purpose and stakeholder governance within its foundational documents or company…

Buy New Zealand Made has acquired cutting edge trademark detection tool Logo Hunter, ensuring the authenticity of New Zealand-made products is protected. Logo Hunter is an AI platform designed by Wellington-based Arcanum to detect and monitor trademark infringements and unauthorised usage of logos. Buy NZ Made executive director Dane Ambler says the integration of Logo Hunter into Buy NZ Made's existing brand protection system will enhance the business's ability to safeguard the integrity of the iconic Kiwi logo. “Logo Hunter has proven to be a reliable tool for identifying trademark violations swiftly and accurately, giving a detailed report of how brands are being used. “The acquisition of Logo Hunter aligns seamlessly with Buy NZ Made's mission of championing and preserving the reputation of New Zealand-made products. “By utilising this powerful…

Businesses that have deprioritised climate action due to economic concerns, are missing the win-win, according to business leaders already on their journey. New research from EECA, the agency backing Gen Less, has revealed three key things standing between businesses and climate action. The latest insights from EECA's Business Monitor has identified that even businesses who want to take climate actions can feel stuck. From the research the biggest barriers perceived are: cost, finding it too hard to start, and an overall lack of knowledge. “Businesses are understandably distracted by economic concerns and other competing pressures right now. But our research shows that they are falling out of step with how Kiwis are feeling,” says EECA's GM of Marketing and Communications, Jo Bye. Only 55 percent of business leaders reported seeing…

Most entrepreneurs begin a business without much thought as to how they will end the business, says Kobi Simmat, author of How to Build a Business Others Want to Buy. “They also tend to build a business around their technical skill hairdressers open hair salons, chefs open restaurants. The trouble is, these technicians get so involved in ‘doing the work’ that they don't stop to think about what they really want from the business, or what they want the business to do for them.” Start with the end in mind and act as if you're going to sell the business from the minute you begin it, he suggests. “If you do, you'll end up with a much more valuable asset in half the time.” Simmat says that when he started…

When looking at the potential for AI to improve life for Kiwi businesses, Quanton's Garry Green says the first big benefit is how it supercharges customer experiences by sifting through, and analysing, huge volumes of data. “Today's customer is looking for improved response times and the utmost personalisation,” he explains. “AI enables SMBs to move quickly and better tailor their products, services and marketing strategies.” Consider how your business makes decisions and forecasts too – is it just a gut feel? Are you going through customer experience trends? “AI enables you to, in real-time, predict demand and make data-driven decisions to be able to better manage staff, inventory and logistics, and improve delivery times,” says Garry. AI is linked to process optimisation and is there to support humans, he adds.…

Think of your mindset as an inbuilt factory setting, explains Jo Shortland. But unlike factory settings, our mindset is forever within our control to change. Based in Raglan, Jo is a certified neuroleadership coach who specialises in strengthening mindsets in order to help New Zealand's sports professionals, business leaders and coaches perform better and succeed through change. In short, Jo knows how to make mindset changes “really stick”. “People all have fixed or growth mindsets,” she explains, “and generally a blend of both. “Fixed can be simply a case of not liking change or having an attitude of ‘you can't teach this old dog new tricks’.” ‘This meeting is always like this’ or ‘they'll never change’ are examples of a fixed mindset, she continues, whereas a growth mindset is basically…

EXPORT In this case, the journey to establishing a successful six-figure business on Amazon.com began by abandoning an outdated ‘set and forget’ approach. The initial strategy involved a two-year-old Amazon Marketplace store that had been outsourced to a third-party based in New Zealand. Despite generating poor sales revenue, the store garnered favourable reviews, ratings, and displayed a strong brand image, including control over the crucial ‘buy box'. Notably, Shopify data indicated that the US ranked as the third most significant traffic source for our brand's direct-to-consumer website, trailing behind New Zealand and Australia, even without advertising on prominent platforms like Google or Facebook in the US. Thus, it was time to liberate ourselves from limitations, roll up our sleeves, and actively engage with the enthusiastic American consumers. BUILDING A NEW…

CUSTOMER EXPERIENCE There's always a lot to do when you're running a business, especially during tougher economic times when you may be dealing with staff shortages, stretched resources, or a decrease in customers. That's why our clients often ask us how they can ensure a great customer experience even in challenging situations. In our experience, the trick is to keep it simple. COMMUNICATION IS KEY When you're short-staffed, underresourced, or facing other issues, it can be challenging to maintain the level of service you desire. However, effective communication with your customers can go a long way in avoiding problems. Imagine you have a dentist's appointment. You've had to leave work early to get there, but when you arrive, you end up waiting 45 minutes because they're running late. You could…

GUEST COLUMN I've come to understand that marketing success boils down to a simple equation: Story+relationship+opportunity = profile Your story matters because it helps people understand why you do what you do. Your story matters because if people buy into your ‘why’ it's the basis of their loyalty to you and your products or services. Do you know what your story is? Do you know how to build a compelling story that people will remember and repeat to others? Your story isn't a list of the things you do or the features of your products or services. It's about the benefits others receive from what you do. It's about the compelling reason behind your business – the one that gets you out of bed in the morning and keeps you…

2023: The Perfect Storm? is subtitled 23 Habits your Board Should Change in the Era of Polycrisis. Polycrisis refers to the rolling maul of global emergencies amid persistent geopolitical and economic instability, and the white paper is designed to help boards plan for and grapple effectively with volatility of all kinds. It observes there are commonalities in bad or unproductive habits among boards, and New Zealand governance follows similar patterns to boards in overseas markets. The common themes which have emerged globally include: • Failing to develop or adhere to a coherent strategy. • Trying to declare ‘crisis over’ too early. • Acting without sober preparation and planning. • Letting ego into the boardroom. • Favouring short-term results over long-term objectives. A statement from the authors says that business and…

A new World Economic Forum report released in late June highlights the transformative potential of artificial intelligence in healthcare and the importance of public-private collaboration in driving its global adoption. A statement from the forum says Scaling Smart Solutions with AI in Health: Unlocking Impact on HighPotential Use Cases – developed in collaboration with global management consulting and technology firm ZS – “aims to spur public-private collaboration to accelerate the responsible application of AI in healthcare”. “In response to the systemic challenges that are straining health systems worldwide, the report proposes a global taxonomy for healthcare AI uses and shows how global healthcare systems could unlock the full potential of these new technologies to transform patient care, reduce costs and enable people to live healthier, longer lives.” Shyam Bishen, Head…

column PRIVACY Privacy breaches are bad news but they're also a chance to learn from and prevent further breaches. There are four steps every manager should know to reduce the harm to their business. The first step is Contain. You need to find out what's happened and take steps to stop the breach from getting worse. Regardless of the size of the breach, time is crucial. Your duty is to do what you can, to safeguard what private information you hold. This will help protect your customers, your staff, and your reputation. In some cases, you will need to consider legal action to protect information that has been breached. A good example of this was the injunction issued by the High Court to stop people sharing the data that was stolen…

column LEADERSHIP THINKING One by one the reasons for using the language of economic recession are disappearing, some gradually, others much more rapidly. Debates about whether or not we are heading towards, or in, a recession seem increasingly irrelevant. This is not written from any particular political perspective. It's simply a summary of some of our current key economic indicators. Both interest rates and their impact on inflation seem to have peaked and may be showing early signs of returning to pre-Covid levels. Supply chain constraints are easing in critical areas like construction, albeit directly linked to softening demand. Perhaps most encouragingly, the labour market appears to be easing from shortfall, largely due to soaring net migration numbers in recent times. The numbers of new migrants coming to Aotearoa New Zealand…

column MANAGING FOR A BETTER WORLD It's hard to admit but we all know the feeling: work and the workplace can sometimes seem a bit blah. Shorter, colder, rainier winter days don't help. Experts have a few useful things to say about what managers might seek to do to understand and help beat the mid-year malaise. Be curious. It's worth trying to establish who's feeling what and why – starting with yourself. Particularly in times of economic constraint, there may be very good reasons for managers to feel they have less autonomy and control, less potential to innovate and invest in new ideas and, as a result, fewer willing-to-engage colleagues. Workplace lassitude may also be driven by too much going on at home or in the wider family, or by friends…