Tuesday, October 5, 2010

On Jandals & Entrepreneurs

Yesterday October 4th saw the anniversary of Morris Yock’s trade marking of the jandal. The story of how Auckland businessman and his son Anthony began manufacturing the jandal in their garage in Te Papapa in 1957 is an interesting read and you can get in a nutshell on http://www.nzhistory.net.nz/timeline/4/10

I thought it interesting the Microsoft Outlook dictionary doesn’t know about jandals.

The day before, I had a leisurely Sunday morning breakfast with a dear and long time friend. We were at Shed 16, just off the motorway on Jesmond Road, Drury, south of Auckland. I must digress momentarily to tell you that unlike many places, their coffee was deliciously hot.

The rendezvous was also an opportunity to meet her new friend, a most interesting entrepreneur who is producing a portable building which folds up into a container for transport, then just unfolds again when located. We had seen these at the Mystery Creek Field Days and at a Homes Show in Auckland. http://www.habode.com/overview.html

Rod and I talked about getting great ideas off the ground. My interest of course is in building business cultures which encourage creativity and innovation. Rod’s perspective was of someone who actually does it!

In the back of my mind as we talked was a recent NZ Herald article, “New Zealand economy gets a C, must try harder.” [30 Sept 2010 / B4] The article by Owen Hembry noted, “The country is not a star performer and was often behind the average when compared with a peer group of OECD countries.” In fact, we were graded ‘D’ on Innovations and business sophistication, 20th of 31 peer countries. Really, that’s a terrible rating isn’t it?

New Zealand has an Economic Growth Agenda which encompasses six main policy drivers, one of which is supposed to be support for science, innovation and trade. You can read more about that on www.med.govt.nz

Why isn’t it working?

The discussion with Rod reminded me of the story I had heard before, especially when I chaired our local Economic Development Agency. There just isn’t the investment money around to get the new ideas off the ground. We know where that money went of course, into highly speculative and badly run finance companies all in the hope of ‘too good to be true’ returns. And now there is even less money available to invest in our economic development as the Government bales out the failures – all good capital straight down the long, dark and unproductive drain hole.

As Rod and others like him have said, nobody really wants to know you, and the Ministry of Economic Development is no exception, until you have an obvious success on your hands, and then the few investors around want your soul as part of the deal.

In my view, that’s hardly a culture which encourages creativity, innovation, or economic development.

Tuesday, September 21, 2010

Where the bloody hell are Ya?

Adelaide mate!
Adelaide has a population of 1.2 million and despite its size feels like a rural city. It felt like being at home in Franklin, but on a larger scale. We didn’t get a feel of lots of people even at ‘peak time’. We have been visiting primarily to attend the Royal Agricultural & Horticultural Society of South Australia’s State Show. (http://en.wikipedia.org/wiki/Royal_Adelaide_Show)

Adelaide has been developed from scratch to the carefully conceived plan of Col. Light. The city is inland with the centre planned on a mile square grid with parklands surrounding. The city then stretches out from the corners of that grid.

The first settlers came from what was the then Prussia where many were escaping persecution, especially Lutherans.

Arriving on Sunday 5th we needed to change quickly to attend the Inter State Presidents luncheon. Our room was not ready however staff of the BreakFree on Hindley (
www.breakfree.com.au) without hesitation upgraded us to an apartment with their compliments and made sure a taxi was waiting to get us to the Show Grounds.

The President, Charlie Downer formally welcomed us at lunch. We sat with Geoff and Fay Phillips (Geoff is on the Board of the Royal Melbourne Show); Mike and Jenny Parry and Walter Duncan (an Adelaide director). Mike Parry is a photographer and had been involved with the Launceston Show, one of the oldest A & P Shows in Australia. Apparently their show has the largest poultry section of all the shows with 800 – 1,000 birds. His forefathers were amongst the early settlers of Melbourne.

After lunch we headed off to the ram auction. There has been some conversation in our various farming newspapers about Australian farmers getting a better price for their lamb than their counter parts in New Zealand. The fact that our sheep and beef industry can’t collaborate to get their act together may be a factor...but I digress.

The sheep pavilion was vast. Border Leicester rams were being auctioned. An August 1st drop ram, 126.5kgs, by a champion ram sold for $3,000. It is obvious to an observer of the hundreds of sheep they were generally bigger, stronger, and better covered.

The agricultural economy is based around grain, cereal and citrus growing. 40% of Australia’s apples are grown in the state. Residential growth has expanded the city at the expense of a market gardening, primarily potatoes.

A GrayLine Tour (
http://www.grayline.com.au/about-us.aspx) took us to the Barossa Valley for a day. Our driver/guide had deep family roots in the Valley which made for an informative insight into the area.

George Angus brought the first 28 families in the ship the Prince George in 1839. He owned 28,000 arces and sold the first families their holdings. Because they had no money he let them take their holding to start their new life and pay him off over time. He had faith they would do that and of course his faith proved to be well founded. These families worked hard creating the wine industry the valley is known for today.

Today there are around 500 families growing grapes and around 72 cellar doors. The nature of the industry here has changed as corporates have taken over larger operations and focused on massive production. That production and their marketing machines have certainly done a great deal to develop Australian wine throughout the world.

Research shows that most wine purchased through retail outlets is usually consumed within 48 hours. The traditional grape growing and wine production methods have changed to sustain this new production. For example traditional grape growing was not irrigated. At Langmeil, the site of one of the early 8 family villages, they still make wine from 167 year old vines which are not and have never been irrigated. They also make their wine by hand. Their 2008 vintage of the 1843 Freedom Shiraz from those grapes, shouts a quality difference from the quaffable massed produced wines.(
www.langmeilwinery.com.au)

Wolf Blass is a name many in NZ will know. He has just turned 73. He began making wine in his own right back in the early 70’s with a borrowed $2,000. (
http://www.newworld.co.nz/inspire-me/wine-sublime/moment-wolf-blass) Recently he sold his business for hundreds of millions of dollars. His personal philosophy for wine making is that, ‘last year’s vintage doesn’t count no matter how good it was. Each new vintage has to be approached afresh and in its own right.’

This worthwhile lesson in life was repeated in research on funds management referenced in the business section of the NZ Herald this morning. In an article headed, “Last year’s winner has already bolted”, Christopher Worthington notes, “...there is no persistence in a fund’s ability to outperform their peers...the top performing funds managers from last year are no more likely to have good performance this year than a manager selected at random.”
http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=10674929

In my view, all those who invested chasing the promise of inflated returns might have been better off having a glass of wine in the Barossa with Wolf Blass.

Tuesday, August 31, 2010

On Property Managers

In my current role the Admin Manager, who is responsible for dealing with the property manager, reports to me.We have been having some issues with the building and the lack of action by the Property Manager which prompted the following story from a long time collegue. Here is his story about a Property Manager.

As I waded through the Ganges delta this morning to the lift still smelling of the decomposed remains of rats in the bottom of the lift shaft, I was reminded of a lesson I learned about property managers a few years ago.

A few years ago when I was younger I was a manager at X hospital and because my wife was pregnant at the time I was assigned managerial responsibility for the Maternity service, a fair call I thought as in the judgement of our leader of the time I was more expert in such matters than Geoff.


The first issue I was confronted with was the extreme temperatures suffered during summer by birthing mothers due to the lack of air conditioning in the maternity hospital. We summoned the property manager, who will be known as 'A' and I will reserve any comments as to his IQ. 'A' immediately entered what I came to discover was property manager mode. He first offered the opinion that the temperature wasn’t that high compared to the outside temperature of 25c and that it didn’t seem to him to be that hot (though one could observe a trickle of sweat down the side of his face). After some pressure from myself, the chief midwife ('J') and the CMFIC ('M'), 'A' agreed to do something. OK we said, how long? "a week", and we left with a sense of partial victory.

After two weeks of no response and heading towards February, we confronted 'A' who entered property manager phase two, “oh, yes, sorry, I haven’t had a chance, I have been busy, give me another week”. On this occasion we set a binding time and he returned in a week to enter phase three, obfuscation (a word Geoff cannot pronounce so I love using it). “Yes, I have had a look, it will be very complicated and very expensive and we don’t have any money”. We further prevailed upon him, but discovered a brick wall.


At this stage we decided a tactical retreat was appropriate and I consulted my colleagues 'J' and 'M' who disclosed a gem of information – “he does this every year”. He stalls us, first he will offer to investigate, then he will forget, then it’s too expensive and complex and next he will say that we have to prove our case by measuring the temperature for a month, then we have an argument about what is the right temperature for birthing and finally winter comes and we lose our sense of energy”. What a gem of information and to some extent similar to what we are facing with our equivalent of 'A' and the Ganges Delta.

Armed with this information we reengaged and sure enough the next phase emerged, "you will have to prove your case". We immediately pulled out last year’s results and after he protested that it was a particularly hot summer last year, we confronted him with our knowledge of his pattern of procrastination. It was not necessary for me to play bad cop as our chief midwife and our CMFIC had imposing personalities and their usual hearts of gold had turned to granite.


We offered the opportunity for a discussion with the CEO where we would discuss the several years he had delayed any action on the very high temperatures in the maternity hospital through his delaying strategies and sure enough he changed his mind and after a few days came up with a creative solution that saw air conditioning installed as part of a revamp of the maternity hospital that was opened by Joan Bolger (a productive mother herself) a few months later.

Perhaps the moral of this story is that you need to get the 'A' for our building, pin him to the ground and place a stiletto heal on his throat and he might perform. We must also never forget that there is a problem, when winter comes or when it stops raining, because that is what property managers live for, problems going away without them having to lift a finger or part with a single dollar.

Wednesday, August 18, 2010

The Curse of Multiple Breed Societies

The following is a letter I wrote to the Horse & Pony magazine in NZ . It is published as their letter of the month in the September issue. It was written in support of Kevin Cholmondeley-Smith’s Show Scene column, ‘Too Many Cooks’ in the July issue of H&P.
Apart from a strong interest in horses, I work in organisation development, that is, working to help organisations become high performers and become great places to work where staff are highly engaged in the purpose of the business. ‘Engaged’ in this sense is a positive involvement as opposed to selfish, negative and divisive behaviour.

In any organisation the aim is for everyone to believe in the common purpose and to commit to collectively achieving that purpose. The employment selection process, if conducted properly, ensures that only such people make it through. The combined energy of this collective is the driving force behind organisational success.

The selection process for membership of an organisation such as a breed society is not so robust. The usual requirement for membership is either to have one of the breed or have an interest. There is no selection process to determine the true motivation or psychometric profile of the individual, as we do in business.

Breed societies are very important, especially where they are supporting breeders of purebred animals and maintain a true stud book, in which, as Kevin noted, “…we can track full pedigrees and verify parentage.”

Of course the development of registers for cross breeds probably causes the blood of purists to run cold, but I understand the interest as many cross breed to develop ‘types’ such as the NZ Sport Horse.

To a certain extent I have been an observer of both the emergence and proliferation of societies. I have been directly associated with one over a considerable period of time which works well with everyone sharing the common purpose, and I am a Life Member of that organisation. The same cannot be said for the other two. One has, after some considerable effort and a threat from the European parent body, come together in an uneasy truce. The other is embroiled in petty and personal bickering.

Both the latter organisations have consumed considerable non productive energy. Much of the division and proliferation is driven by personalities and the fervent desire of some to exert their dominance over others, no matter what the cost, for purely selfish personal reasons – often disguised as some righteous greater purpose. Much of the behaviour is emotional claptrap and shouldn’t be tolerated.

I do wonder at peoples readiness to fan or contribute to disunity, then offer the disunity as a reason why they won’t sit on committees or otherwise involve themselves productively in the common cause. And I agree with Kevin’s proposition that; “…this proliferation of registers weakens the industry.” It does nothing to support either the Pure Breeds or the New Zealand breed.

Kevin’s proposition that we, ‘tighten things up’, should be universally supported by the equestrian community. His view that, “…our shows would suddenly have greater relevance and leave classes with more meaning…” makes sense. I for one am happy to engage in discussion with positive people to look to a more rational approach for the breed organisation environment to “…breed produce and offer New Zealand winners on every level for the many disciplines we aspire to.”

Those who can’t engage positively need not apply.

Saturday, August 14, 2010

Enzo Ferrari

The 14th of August is the date Enzo Ferrari died in 1988. His life makes an interesting story which I have read a couple of times courtesy of the Primary Health management team of the Canterbury Area Health Board. I had facilitated a strategic planning workshop over a couple of days at the Hamner Springs Hospital. Hardly celubrious but practical. As a thank you they gave me some book vouchers which I used to buy the Broch Yates book, 'Enzo Ferrari: The Man, the Cars, the Races, the Machine'. The team signed the book with some appreciative inscriptions - that was 1991.

Enzo fascinated me, I wondered how I would have managed working with such a man. It seems he had more of an affinity with the mechanics than with the drivers and had a fetish for cleanliness. He would be in the workshops every evening at 5pm, 'like clockwork'. Every tool had to be clean and in place before the staff could go home.

In the earlier days the Ferrari road cars were little more than detuned race machines. Apparently they were pretty awful to drive unless on open roads and at full throttle. They boiled over in city driving. There is a lovely story of how an american who was selling the cars in California went to Modena to complain that these status cars could not be driven in Los Angeles traffic without over-heating. Ferrari was shocked and summoned one of their latest cars and took the american for a drive through the narrow and winding streets. Ferrari kept an eye on the temperature gauge. As it started to climb, Ferrari would stop and point out some famous landmark or stop by a cafe.

The late '50s saw the introduction of the new formula two cars referred to as a rear engine (in reality more mid-engine). Although new drivers such as Bruce McLaren adopted the radical new engines and started to dominate, Enzo Ferrari remained distainful, summarily dismissing them as 'oxen pulling the cart'.

Ferrari himself was a workaholic, with no time taken off for weekends and holidays, and there was extreme pressure on his senior staffers to be the same.

In the early 60's Ferrari was negotiating to sell to Ford. After discussions over time the deal was to be finalised between Ferrari and Donald Frey. Ferrari opened by asking Frey, "if I wish to enter cars at Indianapolis and you do not wish me to enter cars at Indianapolis, do we go or do we not go?" Apparently Frey responded without hesitation, "You do not go." Ferrari stood up and said, "It was nice to know you." And that was the end of the negotiation.

Tuesday, August 10, 2010

Do Gadgets save work or make work?

Many today complain that they are so busy – they have to work long hours. Yet they are seemingly anxious to ensure that they are continuously and urgently in contact or available to all of those who might contribute to the intrusive demand on their time. 

Technology and our desire to have gadgets belies the fact that we are not happy working so hard and so long. And the research shows that New Zealanders work some of the longest hours in the world. There is something of snobbery. Witness what happens when you go to a meeting and someone produces the latest gadget, especially if it is not yet generally available. Everyone will zero in and the ‘thing’ will demand the attention of all, pushing all other thought and purpose into a back corner. My blackberry and Tablet laptop are great tools. I find them so helpful in my life, making it easier for me to maintain my varied work and community interests. I think the difference is between being controlled by, or being in control of them. 

These things work for me on my terms. Whilst some might think it eccentric, I put about quite openly, that I do my email on Wednesday and answer the phone on Thursday. Those who know me will chant that mantra at those who foolishly talk about emailing me or phoning me on some other day. There are many who are slaves and they can’t all be emergency on call doctors or special forces anti terrorist police. They are leaving home to go out and the phone rings so they rush back inside to answer the phone. 

With the assistance of messaging and answer phones we can leave the electronic interference to a time that suits. It is highly entertaining to watch people lunge desperately about their person, amongst their clothes and in their bags for their mobile phone which has just buzzed. They mount this spastic search in such a way as to convince you they are about to receive a history making call or say, “Yes Prime Minister, I shall rush to the ramparts and defend the city until the army arrives!” Instead we hear, “Hi, yeah I'm good...what say you just send me an email with the details and I'll get back?”

Wednesday, August 4, 2010

NZ Managers average to middling

In June of this year the results were published of a research project for the Ministry of Economic Development, where management practices in New Zealand manufacturing firms were benchmarked against the best. These results prompted an article in the Listener July 3-9 2010. Page 54 The Works “Our slack Bosses".
[http://www.med.govt.nz/templates/MultipageDocumentTOC____43278.aspx]

The findings suggest that while some of New Zealand’s business are as good as any in the world, there is a substantial tail of firms that are mediocre, especially in their approach to people management. The report notes, “This is a key differentiating factor between New Zealand and better performing, more innovative countries…”.

The research findings also suggest, “that there is a link between quality of management – scored across 18 dimensions of people, performance and operations – and enterprise productivity.”

It seems New Zealand managers are ‘average to middling’.

I guess we shouldn’t be surprised. We have fallen steadily in terms of productivity. Or should we look at this way. Just as the numbers of management schools, management and leadership programmes, MBA’s and the like have exploded over the last few decades; New Zealand’s productivity has plummeted.

There is no shortage of research in many countries showing the positive relationship between management and productivity. The research identified key drivers of management practices in New Zealand such as; The nature and characteristics of people management, including collaborative workplace relations and an open organisational culture, are primarily determined by firms themselves rather than by the structure of the labour market. Another finding, reported that NZ managers tend to over rate their firms management performance.

The international study found increased labour market flexibility correlated with a superior people management score in a number of countries. However the New Zealand findings did not support that. Although NZ has developed a fairly flexible labour market, we do not score well in people management practices.

So let’s just recap. New Zealand’s productivity continues to fall. Further, we have known for some time that there is a direct link between the quality of management and productivity. This new research indicates that our management (in manufacturing anyway) isn’t particularly good. And their response to improving productivity? To recommend to the government employees should work a nine day fortnight and, to pass legislation requiring any employee who is away sick for a day to produce a medical certificate – like that’s going to make a difference. Maybe the employees were off because they were sick of management. Go figure!

Wednesday, July 28, 2010

The current hysteria about employment Trial Periods is a crock!

We have always had the right to use a trial period in employment. My first Personnel Management role in the 1980’s was in the apparel industry, in a factory in Porirua just north of Wellington in New Zealand.

Staff operated machines and were paid a piece rate, i.e. they got a set rate per garment produced on spec. The staff pool was largely unskilled and it was hard to know if an unskilled person was able to do the job, let alone sustain the production rate and meet the quality standard consistently. The arrival of more sophisticated machinery also had to be considered.

Because of the new machinery we were meeting with the Union anyway to discuss the new production expectations and related piece rates so we also talked about how we might ensure successful staffing appointments.

We agreed that with the support of training, an experienced Buddy and regular feedback, a trainee operator should be at the standard production target rate within two weeks, then maintain that for the third week.

If after week two the trainee hadn’t reached target, their employment ended. If they did achieve target but were unable to maintain for the third week, their employment ended.

The system worked extremely well. Even trainees who didn’t make it through often commented how pleased they were to have the chance. It also worked the other way for prospective employees who had never worked in a factory before. They got the chance to experience the work and environment knowing they too could decide not to carry on. So much better for their dignity.

I can recount various examples of how these types of systems worked, with rational, agreed and fair processes. So why the big fuss when this is not new?

Well the so called new advantage in employment is being touted to mask the true intent – the removal of employment human rights. Decisions to determine whether or not the trial period was fairly run or whether or not the trainee would have a job cannot be challenged. So the employer gets to be Judge, Jury and Executioner. I asked someone who was vigorously advocating this right, “If the Police suddenly rushed in now and accused you of a crime, arrested you and carried you off, would you expect the right to challenge their claim?”

Their answer was of course, “YES!” Go figure.

Monday, July 26, 2010

Urging domestic growth but buying overseas

I don’t understand. In a time when we are doing everything we should to encourage & develop our industries, we are awarding major contracts to overseas business.

On the one hand we continue to raise standards of living in New Zealand through wages, holidays, significant occupational safety requirements and an array of other benefits which employers pay. Well actually the consumer pays!

Yet on the other hand, we or certainly the Government places significant orders with suppliers in places like China. Employee welfare is not exactly high on the priority list of Chinese employers – if at all. Neither is safety for employees or consumers for that matter.
New Zealand manufacturers therefore are way behind in the opportunity to price competitively, despite their best efforts.

So here we are with a Government borrowing millions of dollars every week to buy stuff from China and similar manufacturing environments. By ignoring our own industry we are jeopardising their ability to keep operating in New Zealand, or at all.

Of course when this productive sector closes down, the ranks of the unemployed swell and all of the attendant social impacts inevitably increase. The Government then borrows even more money to pay for the enlarging non-productive sector.
How does that work toward an economic recovery? Go figure.