LEADER COLUMN AUGUST 2011
This month’s 20-20-Inner-City-Development-Subcommittee meeting did more than just outline the Whangarei District Councils vision for the commercial business district; it also provided an update on a number of key projects that the council intends to undertake to bring their vision to fruition. The community will see some highly visible physical elements that will do much to create a sense of arrival and legibility for visitors and a sense of place for the district’s residents.
One of the most obvious of these which is now close to completion is the new canopy over the Victoria Street Bridge. This will provide an arena for a wide range of activities of varying size and create a key visual element tying the CBD and the Town Basin. Furthermore with this structure being constructed by Fabric Structure Systems it is an opportunity to celebrate the creativity and capability of Whangarei business.
At the same time the conceptual form of the linkage between the Town Basin and Cameron Street Mall is beginning to reach a level of detail that will enable the Council to consult with and receive feedback from the various CBD stakeholders. It appears that James Street is likely to be the main connector between Cameron Street Mall and the Town Basin with this street becoming either a laneway or mall. It is possible that the change could be carried out in stages, starting with a laneway and then progressing to a full extended mall.
The conceptual options currently before the council allow for covered walkways, pedestrian friendly streetscapes and dedicated activity strips aimed at enlivening the edge of existing commercial buildings and encouraging movement on foot through the city. Interestingly the council has a relatively short time frame for these projects with much of the work programmed for completion within three to five years. This would mean that Whangarei’s inner-city would have a dramatically different form, and present a much more attractive environment for retail activity than it currently does.
These projects and overall concept may not be to everyone’s liking but they do provide a sense of certainty and direction. They allow business to invest based on an informed vision as to where the council sees our city in the future. What then remains to complete this vision are possibly the rationalization of council office space and the developing of a stronger focus for performing arts around Forum North
14 September 2011
LEADER COLUMN JULY 2011
The Northland Chamber of Commerce is the Northland regional coordinator for Business Mentors New Zealand (BMNZ). This is an agency funded by patrons from the private sector and New Zealand Trade and Enterprise and it has the capacity to combine the elements mentioned above. For a one-off registration fee of $100, BMNZ provide the service of putting client businesses in touch with mentors. This entitles the client to free mentoring services for a two year period.
Many small businesses do not have the support and resources found within large companies. The mentor scheme allows them to access skills and knowledge that may not otherwise be available to them and in doing so, an opportunity to overcome this disadvantage of scale. The mentor provides support to the business and the focus is on ensuring the business owner undertakes tasks identified as needing to be addressed if the business is to be sustainable or develop.
Although this is just one way the Northland Chamber of Commerce helps our region’s businesses, it is an important one. This is a service that is not just for struggling businesses, but for any business that wants to strengthen its position in the market. Assistance may be to develop a pathway to grow a business, explore export opportunities, or possibly to create a succession plan so a business owner may exit their business in a manner of their choosing.
Northland is blessed with a many very successful and knowledgeable business people who have gained their experience both here and overseas. For many of these people, living in Northland is a conscious choice made at the expense of career and financial opportunities. The challenge is to utilise them and their experience to better equip the next generation of business people.
This is a volunteer service and the amount of time commitment varies based on the individual mentor’s circumstances. However it goes without saying that the more mentors we have the better we can manage and improve the level of service we provide. Mentors have access to a wide range of resources to assist them in mentoring and care is taken to match the client’s needs with the mentor’s skills. We are seeking assistance from these amazingly talented and often underulitised business people in Northland, who can help the Region’s businesses, if you would like to know more about how you can help, please contact the Chamber at info@northchamber.co.nz.
The Northland Chamber of Commerce is the Northland regional coordinator for Business Mentors New Zealand (BMNZ). This is an agency funded by patrons from the private sector and New Zealand Trade and Enterprise and it has the capacity to combine the elements mentioned above. For a one-off registration fee of $100, BMNZ provide the service of putting client businesses in touch with mentors. This entitles the client to free mentoring services for a two year period.
Many small businesses do not have the support and resources found within large companies. The mentor scheme allows them to access skills and knowledge that may not otherwise be available to them and in doing so, an opportunity to overcome this disadvantage of scale. The mentor provides support to the business and the focus is on ensuring the business owner undertakes tasks identified as needing to be addressed if the business is to be sustainable or develop.
Although this is just one way the Northland Chamber of Commerce helps our region’s businesses, it is an important one. This is a service that is not just for struggling businesses, but for any business that wants to strengthen its position in the market. Assistance may be to develop a pathway to grow a business, explore export opportunities, or possibly to create a succession plan so a business owner may exit their business in a manner of their choosing.
Northland is blessed with a many very successful and knowledgeable business people who have gained their experience both here and overseas. For many of these people, living in Northland is a conscious choice made at the expense of career and financial opportunities. The challenge is to utilise them and their experience to better equip the next generation of business people.
This is a volunteer service and the amount of time commitment varies based on the individual mentor’s circumstances. However it goes without saying that the more mentors we have the better we can manage and improve the level of service we provide. Mentors have access to a wide range of resources to assist them in mentoring and care is taken to match the client’s needs with the mentor’s skills. We are seeking assistance from these amazingly talented and often underulitised business people in Northland, who can help the Region’s businesses, if you would like to know more about how you can help, please contact the Chamber at info@northchamber.co.nz.
LEADER COLUMN SEPTEMBER 2011
Following on from last month’s column regarding the recent changes to the Town Basin and the proposed future shape of our Commercial Business District, it might be appropriate to consider how we can benefit from these changes and what is still missing from the mix. There has been talk lately regarding the value of event or destination tourism and the role it can play in stimulating economic growth. Much of what has been done or is planned to be done could potentially act as an attractant for groups wishing to hold events in Northland.
The Council - and others - are working to create a vibrant, walkable inner city with good amenity. This accompanied by our climate, fantastic natural environment and our close proximity to New Zealand’s largest city should make us an attractive destination for event tourism. There are of course a number of key elements that are required before Whangarei is a position to take advantage of this opportunity. Among these are sufficient hotel beds of a sufficient standard, a theatre or auditorium of the required capacity and a hospitality centre capable of catering for 400 plus guests.
Like most things, whether we chose to pursue them or not will ultimately political decisions based on the desires of the community, but overseas cases show that this market can be an economic game changer for many cities and towns. For example with an innovative culture San Diego, through a whole-of-city approach has used event tourism and in particular conventions as a driver to transform and rebuild their inner city. It has allowed them to develop a strong and diverse economy. Even with the scale of their event’s infrastructure they turn way a year’s worth on convention business each year.
As well as the possibility of attendees deciding they may want to do business here and the general economic benefits that such events bring to the District, there is an added advantage for our community. Members of Northland’s communities can have the opportunity to participate in events that they would not otherwise be exposed to or able to attend. This removes another barrier to people choosing to settle here by creating a community that is culturally strong, diverse and innovative. To make this happen will require further investment in infrastructure at a cost to our ratepayers but this cost needs to be weighed against the potential benefit for future generations.
Following on from last month’s column regarding the recent changes to the Town Basin and the proposed future shape of our Commercial Business District, it might be appropriate to consider how we can benefit from these changes and what is still missing from the mix. There has been talk lately regarding the value of event or destination tourism and the role it can play in stimulating economic growth. Much of what has been done or is planned to be done could potentially act as an attractant for groups wishing to hold events in Northland.
The Council - and others - are working to create a vibrant, walkable inner city with good amenity. This accompanied by our climate, fantastic natural environment and our close proximity to New Zealand’s largest city should make us an attractive destination for event tourism. There are of course a number of key elements that are required before Whangarei is a position to take advantage of this opportunity. Among these are sufficient hotel beds of a sufficient standard, a theatre or auditorium of the required capacity and a hospitality centre capable of catering for 400 plus guests.
Like most things, whether we chose to pursue them or not will ultimately political decisions based on the desires of the community, but overseas cases show that this market can be an economic game changer for many cities and towns. For example with an innovative culture San Diego, through a whole-of-city approach has used event tourism and in particular conventions as a driver to transform and rebuild their inner city. It has allowed them to develop a strong and diverse economy. Even with the scale of their event’s infrastructure they turn way a year’s worth on convention business each year.
As well as the possibility of attendees deciding they may want to do business here and the general economic benefits that such events bring to the District, there is an added advantage for our community. Members of Northland’s communities can have the opportunity to participate in events that they would not otherwise be exposed to or able to attend. This removes another barrier to people choosing to settle here by creating a community that is culturally strong, diverse and innovative. To make this happen will require further investment in infrastructure at a cost to our ratepayers but this cost needs to be weighed against the potential benefit for future generations.
ADVOCATE COLUMN 1st WEEK SEPTEMBER 2011
It seems that every day there are results from some new survey or another being released to enlighten us on the state of the economy and New Zealand business. All have their value and the quarterly Chamber of Commerce Business Confidence Survey is an example of a survey that can provide information as to the business owner’s perspective. Recently there have been two other surveys released that offer not only information but also some interpretation which can be used to the benefit of anyone involved in business.
The first of these is the ANZ Privately-Owned Business Barometer which provides an in-depth perspective benchmarked against previous year’s results that enable – among other things - the identification of long-term trends. The full details of this are available on the bank’s website, but in brief this survey found that business owners are both resilient and passionate about the success of their own business. While the majority expects positive growth in the next year, owners are stretched and are finding it harder to balance work and their personal life.
The second survey was one that has been undertaken on behalf of NZ CA Limited entitled “Growth Guide the business of growth small medium business 2011” of which local accounting firm Sudburys Limited are a partner. As the title suggests, this survey focuses on the growth ambitions of businesses surveyed, what those owners believe they need to concentrate on to achieve growth, what is likely to inhibit growth and how can they overcome these barriers. It also addresses what the respondents saw as important for them to do and whether in fact they were actually doing those things at present.
Interestingly much of the areas identified by the businesses as necessary for growth, were things over which the owner has control. It entailed gaining a better understanding of their market, their customers and their business. Equally important was seen as the need to have an understanding of where they wanted their business to be in the future. To this end the need to have a business plan was highlighted as critical to growth.
Companies with business plans were shown as significantly more likely to have enjoyed growth than those without. Both these surveys show that the information needs to be interpreted by the owner, tailored to their individual business and managed with the support of professionals such as banks, lawyers or accountants to create a plan that gives the best opportunity for growth.
It seems that every day there are results from some new survey or another being released to enlighten us on the state of the economy and New Zealand business. All have their value and the quarterly Chamber of Commerce Business Confidence Survey is an example of a survey that can provide information as to the business owner’s perspective. Recently there have been two other surveys released that offer not only information but also some interpretation which can be used to the benefit of anyone involved in business.
The first of these is the ANZ Privately-Owned Business Barometer which provides an in-depth perspective benchmarked against previous year’s results that enable – among other things - the identification of long-term trends. The full details of this are available on the bank’s website, but in brief this survey found that business owners are both resilient and passionate about the success of their own business. While the majority expects positive growth in the next year, owners are stretched and are finding it harder to balance work and their personal life.
The second survey was one that has been undertaken on behalf of NZ CA Limited entitled “Growth Guide the business of growth small medium business 2011” of which local accounting firm Sudburys Limited are a partner. As the title suggests, this survey focuses on the growth ambitions of businesses surveyed, what those owners believe they need to concentrate on to achieve growth, what is likely to inhibit growth and how can they overcome these barriers. It also addresses what the respondents saw as important for them to do and whether in fact they were actually doing those things at present.
Interestingly much of the areas identified by the businesses as necessary for growth, were things over which the owner has control. It entailed gaining a better understanding of their market, their customers and their business. Equally important was seen as the need to have an understanding of where they wanted their business to be in the future. To this end the need to have a business plan was highlighted as critical to growth.
Companies with business plans were shown as significantly more likely to have enjoyed growth than those without. Both these surveys show that the information needs to be interpreted by the owner, tailored to their individual business and managed with the support of professionals such as banks, lawyers or accountants to create a plan that gives the best opportunity for growth.
BUSINESS ADVOCATE COLUMN AUGUST 2011
In the coming months if everything goes to plan, Northland through its role with the 2011 Rugby World Cup should have an early start to its summer season with an influx of overseas and domestic tourists ready to sample our products, service and scenery. With this event comes an opportunity to show the rest of the country and the world why we love it here. If we can influence these visitors to sell Northland as a place to live, work or visit when they go home then we will create a real legacy from hosting these teams.
While we have little influence over how many visitors will come to the region, as individuals we have an opportunity to positively impact on their stay. The barriers to this happening are obvious. We are all aware of businesses that offer poor or inconsistent quality of service and how we as the consumer react to them.
This is about the customer’s expectations not ours. The likelihood is that our visitors will have high expectations in relation to product and service and for us to improve our reputation we do not only need to meet these expectations but to exceed them. Part of this may require an understanding of a visitor’s cultural difference. Like all things market knowledge accompanied service or product knowledge will be essential in achieving a positive impression.
We will need to be open and ready for business. This is not going to be the time to practice on the customer. Much of the values around customer service will be driven by the business owner. They will be the ones who make sure they hire friendly staff and train them. This training will include product knowledge and understanding. It will focus on developing confident service staff who recognise the importance of selling to the consumer and creating an ongoing relationship with them.
The other key responsibility of the owner is to construct a business framework that enables the staff to fulfil their potential and do their job without physical and procedural boundaries. This is a specialist area of training and there is value in seeking specialist help to develop the systems to make this possible. Finally the owner is tasked with ensuring all within the business understand his or her vision and what it is that they want the customer to experience. This is the story that the consumer will take away with them and tell their friends.
In the coming months if everything goes to plan, Northland through its role with the 2011 Rugby World Cup should have an early start to its summer season with an influx of overseas and domestic tourists ready to sample our products, service and scenery. With this event comes an opportunity to show the rest of the country and the world why we love it here. If we can influence these visitors to sell Northland as a place to live, work or visit when they go home then we will create a real legacy from hosting these teams.
While we have little influence over how many visitors will come to the region, as individuals we have an opportunity to positively impact on their stay. The barriers to this happening are obvious. We are all aware of businesses that offer poor or inconsistent quality of service and how we as the consumer react to them.
This is about the customer’s expectations not ours. The likelihood is that our visitors will have high expectations in relation to product and service and for us to improve our reputation we do not only need to meet these expectations but to exceed them. Part of this may require an understanding of a visitor’s cultural difference. Like all things market knowledge accompanied service or product knowledge will be essential in achieving a positive impression.
We will need to be open and ready for business. This is not going to be the time to practice on the customer. Much of the values around customer service will be driven by the business owner. They will be the ones who make sure they hire friendly staff and train them. This training will include product knowledge and understanding. It will focus on developing confident service staff who recognise the importance of selling to the consumer and creating an ongoing relationship with them.
The other key responsibility of the owner is to construct a business framework that enables the staff to fulfil their potential and do their job without physical and procedural boundaries. This is a specialist area of training and there is value in seeking specialist help to develop the systems to make this possible. Finally the owner is tasked with ensuring all within the business understand his or her vision and what it is that they want the customer to experience. This is the story that the consumer will take away with them and tell their friends.
ADVOCATE COLUMN 3rd WEEK AUGUST 2011
On average New Zealand youth are more disadvantaged across a number of performance indicators than many other OECD countries and this disadvantage is strongly concentrated in Maori and Pacific Islanders. With 45% on New Zealand’s total unemployed being youth, this has significant impact on our future well-being. While our youth perform (comparatively) well in education, this does not follow through on average after leaving school. The New Zealand Institute has released a discussion document “More ladders, fewer snakes: Two proposals to reduce youth disadvantage”. It makes interesting reading identified that accelerated roll-out of e-learning to low decile schools and improving the school-to-work transition could materially reduce youth unemployment and resulting social issues.
The paper looked at both the advantages of increasing student engagement by rolling out e-learning to low decile schools and at improving the transition from school to work as two forms of intervention that have a positive outcome on reducing this disadvantage. Obviously with the roll out of Ultrafast Broadband and the Rural Broadband Initiative there will be opportunities to improve outcomes through e-learning. There will also be a number of challenges to be met to ensure that we do not create a digital divide across our various communities.
An equally critical point is how we can assist youth in the transition from school to work. Youth often have difficulty in finding their way into permanent. In part this is due to a disconnect between workforce needs and education capacity that can lead to a mismatch between supply and demand. The paper gave an example of a program undertaken by the Otorohanga District which has lead to a zero youth unemployment rate over the last 5 years as a way that this situation can be addressed if the community are willing to commit to making a change.
There are real economic benefits if we get this right. If we achieve the OCED average this could result in annual cash savings greater than annual investment. As well as this there a number of other economic and social benefits to the community and also opportunity to attract further inward investment. Using the Otorohanga case study as an example, businesses relocated there due to the support the program gave to employers and the resource of young trained workers. There is not room to go into this paper in detail due to limited space but the document is available at http://www.nzinstitute.org and certainly worth the time to read.
On average New Zealand youth are more disadvantaged across a number of performance indicators than many other OECD countries and this disadvantage is strongly concentrated in Maori and Pacific Islanders. With 45% on New Zealand’s total unemployed being youth, this has significant impact on our future well-being. While our youth perform (comparatively) well in education, this does not follow through on average after leaving school. The New Zealand Institute has released a discussion document “More ladders, fewer snakes: Two proposals to reduce youth disadvantage”. It makes interesting reading identified that accelerated roll-out of e-learning to low decile schools and improving the school-to-work transition could materially reduce youth unemployment and resulting social issues.
The paper looked at both the advantages of increasing student engagement by rolling out e-learning to low decile schools and at improving the transition from school to work as two forms of intervention that have a positive outcome on reducing this disadvantage. Obviously with the roll out of Ultrafast Broadband and the Rural Broadband Initiative there will be opportunities to improve outcomes through e-learning. There will also be a number of challenges to be met to ensure that we do not create a digital divide across our various communities.
An equally critical point is how we can assist youth in the transition from school to work. Youth often have difficulty in finding their way into permanent. In part this is due to a disconnect between workforce needs and education capacity that can lead to a mismatch between supply and demand. The paper gave an example of a program undertaken by the Otorohanga District which has lead to a zero youth unemployment rate over the last 5 years as a way that this situation can be addressed if the community are willing to commit to making a change.
There are real economic benefits if we get this right. If we achieve the OCED average this could result in annual cash savings greater than annual investment. As well as this there a number of other economic and social benefits to the community and also opportunity to attract further inward investment. Using the Otorohanga case study as an example, businesses relocated there due to the support the program gave to employers and the resource of young trained workers. There is not room to go into this paper in detail due to limited space but the document is available at http://www.nzinstitute.org and certainly worth the time to read.
ADVOCATE COLUMN 1ST WEEK AUGUST 2011
Recent events in Christchurch and elsewhere around New Zealand and the world have shown the devastating impact that natural or man-made disasters can have on businesses and the economy. Some statistics suggest that 3 out of 5 businesses do not have the resilience to survive a major disruption to their business and many cease operating within 5 years of such an event. Disruption of business will affect your ability to maintain your existing market. There have many examples of this arising in Christchurch where inner city business on recommencing operations found that their old customers had moved onto other suppliers.
Previously, something that many enterprises - small or large – may not have considered is how such an event would directly affect their ability to continue to operate. The scale and context of these unplanned disruptions may vary from something like Northland’s typical weather events to something far more catastrophic but the objective for the business remains the same. How do they keep their business operating?
It is generally accepted that a business should have a Business Continuity Plan (BCP) and the exact nature of such a plan will vary depending on the business to which it is to be applied to. The plan will map out how to continue doing business until the environment in which it is operating recovers from whatever event caused the disruption. These plans are probably a useful document not just for their intended purposes but also for examining how your business operates and what are the key processes, personnel and resources.
When developing such a plan it is important that the business keeps an open mind and considers all possible events and what kind of disruption may come from them. This is not a one size fits all document so must be able to be scaled up or down as required and be flexible enough to adapt to changes in the circumstances and your business. It will give you the opportunity to examine your supply chain and see what relationships you have that are critical to you continuing to operate. It may be appropriate to discuss with those key stakeholders what if any BCPs they have. The unexpected will happen and if your business has planned for this and communicated you plan to your strategic partners then your ability to continue to trade in the future will be enhanced.
Recent events in Christchurch and elsewhere around New Zealand and the world have shown the devastating impact that natural or man-made disasters can have on businesses and the economy. Some statistics suggest that 3 out of 5 businesses do not have the resilience to survive a major disruption to their business and many cease operating within 5 years of such an event. Disruption of business will affect your ability to maintain your existing market. There have many examples of this arising in Christchurch where inner city business on recommencing operations found that their old customers had moved onto other suppliers.
Previously, something that many enterprises - small or large – may not have considered is how such an event would directly affect their ability to continue to operate. The scale and context of these unplanned disruptions may vary from something like Northland’s typical weather events to something far more catastrophic but the objective for the business remains the same. How do they keep their business operating?
It is generally accepted that a business should have a Business Continuity Plan (BCP) and the exact nature of such a plan will vary depending on the business to which it is to be applied to. The plan will map out how to continue doing business until the environment in which it is operating recovers from whatever event caused the disruption. These plans are probably a useful document not just for their intended purposes but also for examining how your business operates and what are the key processes, personnel and resources.
When developing such a plan it is important that the business keeps an open mind and considers all possible events and what kind of disruption may come from them. This is not a one size fits all document so must be able to be scaled up or down as required and be flexible enough to adapt to changes in the circumstances and your business. It will give you the opportunity to examine your supply chain and see what relationships you have that are critical to you continuing to operate. It may be appropriate to discuss with those key stakeholders what if any BCPs they have. The unexpected will happen and if your business has planned for this and communicated you plan to your strategic partners then your ability to continue to trade in the future will be enhanced.
BUSINESS ADVOCATE COLUMN JULY 2011
If we consider innovation and creativity as being of importance to Northland’s future then it is appropriate to consider what elements are required for this to take place. What happens in a business on a day-to-day basis may require different processes from those needed to identify opportunities to be innovative or creative. Often opportunities to gain a competitive advantage coincide with difficult economic times and during these periods there is also a pressure to increase efficiency and reduce risk. So although leadership within business can influence change, the value of outside influences and the opportunities they present should not be overlooked.
Youth and tertiary education providers could be considered as potential outside influences for positive change. Youth because they are inherently more open to new ideas, taking risks and challenging accepted practices. While tertiary education can influence innovation and creativity within the business environment while at the same time applying academic rigor to business practice. More importantly tertiary education providers can act as enabling link between youth and enterprise.
As well as encouraging innovation and creativity, these two elements have another benefit for the communities in which they operate. They can positively influence a city’s reputation and act as an attractant for other innovative and creative people to come to that place. There are many examples both within New Zealand and overseas where tertiary institutes draw young and talented individuals into a district. Just look at Otago and Southland. The ability these institutions also have to prevent the loss of local talent should also not be overlooked.
The costs imposed on families wishing to assist their children gain further education can be prohibitive enough without having to consider additional costs relating to travel and accommodation associated with those young people being located away from home. It also means that those students and their families are spending money in their home communities rather than outside the district.
They create a demand and market for many products and services. In Christchurch several years ago, the relocation of the National Academy of Singing & Dramatic Art was sufficient to reinvigorate a large portion of their Commercial Business District that had been in steady decline. Then when their studies are completed they increase the skill level of the regional workforce and potentially start new businesses. In an ideal world we should be doing all we can to encourage and enable young Northlanders to contribute to the region’s economic growth.
If we consider innovation and creativity as being of importance to Northland’s future then it is appropriate to consider what elements are required for this to take place. What happens in a business on a day-to-day basis may require different processes from those needed to identify opportunities to be innovative or creative. Often opportunities to gain a competitive advantage coincide with difficult economic times and during these periods there is also a pressure to increase efficiency and reduce risk. So although leadership within business can influence change, the value of outside influences and the opportunities they present should not be overlooked.
Youth and tertiary education providers could be considered as potential outside influences for positive change. Youth because they are inherently more open to new ideas, taking risks and challenging accepted practices. While tertiary education can influence innovation and creativity within the business environment while at the same time applying academic rigor to business practice. More importantly tertiary education providers can act as enabling link between youth and enterprise.
As well as encouraging innovation and creativity, these two elements have another benefit for the communities in which they operate. They can positively influence a city’s reputation and act as an attractant for other innovative and creative people to come to that place. There are many examples both within New Zealand and overseas where tertiary institutes draw young and talented individuals into a district. Just look at Otago and Southland. The ability these institutions also have to prevent the loss of local talent should also not be overlooked.
The costs imposed on families wishing to assist their children gain further education can be prohibitive enough without having to consider additional costs relating to travel and accommodation associated with those young people being located away from home. It also means that those students and their families are spending money in their home communities rather than outside the district.
They create a demand and market for many products and services. In Christchurch several years ago, the relocation of the National Academy of Singing & Dramatic Art was sufficient to reinvigorate a large portion of their Commercial Business District that had been in steady decline. Then when their studies are completed they increase the skill level of the regional workforce and potentially start new businesses. In an ideal world we should be doing all we can to encourage and enable young Northlanders to contribute to the region’s economic growth.
ADVOCATE COLUMN 1st WEEK JULY 2011
One thing the Northland Chamber of Commerce has struggled with in recent times – and possibly in the past – is engaging with certain sectors of the business community. I do not think we are unique in our failings and I imagine other organisations also have difficulties connecting with these same sectors of the community. The unfortunate thing is that while there has been much hand-wringing and navel gazing on how Northland can move forward, there seems to be little meaningful progress in including the two groups within the community that will over time make a real difference to growing Northland.
With Northland having the second highest proportion of Māori nationally and the second lowest proportion of people aged 15 to 64 years, clearly two groups critical to our future and to realising Northland’s real potential are Māori and youth. These are the people who will provide tomorrow’s leaders and innovators, yet often they appear to be excluded from the conversations about where we are going and how we are going to get there.
Being on the wrong side of middle-aged and of predominantly European descent I am not qualified to say why there is an unwillingness to engage but I imagine it results from these groups either perceiving we lack relevance to them or that they do not feel sufficiently empowered to engage in the process. Either way the challenge is one that organisations such as ours will need to resolve. If we accept that business and the community are interconnected and that youth and Māori are part of the same community then we need to actively create an environment in which they will want to participate in.
This is not to say that Māori do not already feature strongly in the Region’s economy. They participate and contribute at many levels and through a diverse range of business structures. While economic development at a macro level often needs to be sector focused and relatively generic with one size fitting all, that does not mean that regional characteristics should not be taken into account. At a business development level, Northland needs to develop frameworks that act as enablers for all. Our population is too small to exclude any potential entrepreneurs and innovators. This means that we must work to find ways to be relevant to and to assist those who have potential to grow our economy.
One thing the Northland Chamber of Commerce has struggled with in recent times – and possibly in the past – is engaging with certain sectors of the business community. I do not think we are unique in our failings and I imagine other organisations also have difficulties connecting with these same sectors of the community. The unfortunate thing is that while there has been much hand-wringing and navel gazing on how Northland can move forward, there seems to be little meaningful progress in including the two groups within the community that will over time make a real difference to growing Northland.
With Northland having the second highest proportion of Māori nationally and the second lowest proportion of people aged 15 to 64 years, clearly two groups critical to our future and to realising Northland’s real potential are Māori and youth. These are the people who will provide tomorrow’s leaders and innovators, yet often they appear to be excluded from the conversations about where we are going and how we are going to get there.
Being on the wrong side of middle-aged and of predominantly European descent I am not qualified to say why there is an unwillingness to engage but I imagine it results from these groups either perceiving we lack relevance to them or that they do not feel sufficiently empowered to engage in the process. Either way the challenge is one that organisations such as ours will need to resolve. If we accept that business and the community are interconnected and that youth and Māori are part of the same community then we need to actively create an environment in which they will want to participate in.
This is not to say that Māori do not already feature strongly in the Region’s economy. They participate and contribute at many levels and through a diverse range of business structures. While economic development at a macro level often needs to be sector focused and relatively generic with one size fitting all, that does not mean that regional characteristics should not be taken into account. At a business development level, Northland needs to develop frameworks that act as enablers for all. Our population is too small to exclude any potential entrepreneurs and innovators. This means that we must work to find ways to be relevant to and to assist those who have potential to grow our economy.
15 June 2011
ADVOCATE COLUMN 3rd WEEK JUNE 2011
Over the last 18 months or so, the Northland Chamber of Commerce has managed a Department of Labour funded project relating to workplace productivity. The study examined the importance of people and processes in a business’s performance. It involved Venture Group consultant Jill Hartles working with six different farming enterprises in Northland, ranging from a ‘new entrant’ to farming, to a large multi-farm business. Five of the farms, including an organic farm, were dairying enterprises and one was a Maori trust-owned farm.
Jill had one-on-one sessions with the farmers every six weeks helped to demystify things like strategic plans and staff performance reviews and gave the farmers an opportunity to talk about their businesses with someone who was independent. The difference in scale and experience of the various enterprises meant each business was at a different stage in its development. This was not to say that there were not similarities in the lessons they took from the project or from the processes they went through to achieve their outcomes.
While the businesses found it difficult to measure the value of this project in dollar terms, they all experienced an improvement in the day-to-day efficiencies of their farms. To initiate change required committed and innovative leadership from the business owners. They needed to be able to communicate a shared vision with their workforce and to create an environment which encouraged everyone in the workplace to identify opportunities to do things better.
The key lesson was not so much what was learnt but the process that lead to the implementation of the learning. Although all the businesses were willing participants, they also had some reservation in regards to the amount of time they would have to commit to the project. They noted that having an outside consultant driving them in the initial stages was essential to maintaining their motivation to change. They also said that at some stage during the process they all underwent an epiphany where it suddenly became clear what they needed to do and why.
It was not so much a case of delivering knowledge and information to these owners as they were experienced farmers with access to most of the information they needed to instigate change, but rather tailoring a response to their individual business that would lead to that moment where the switch is flicked and the answer is obvious and this is where the outside assistance was of most value.
Over the last 18 months or so, the Northland Chamber of Commerce has managed a Department of Labour funded project relating to workplace productivity. The study examined the importance of people and processes in a business’s performance. It involved Venture Group consultant Jill Hartles working with six different farming enterprises in Northland, ranging from a ‘new entrant’ to farming, to a large multi-farm business. Five of the farms, including an organic farm, were dairying enterprises and one was a Maori trust-owned farm.
Jill had one-on-one sessions with the farmers every six weeks helped to demystify things like strategic plans and staff performance reviews and gave the farmers an opportunity to talk about their businesses with someone who was independent. The difference in scale and experience of the various enterprises meant each business was at a different stage in its development. This was not to say that there were not similarities in the lessons they took from the project or from the processes they went through to achieve their outcomes.
While the businesses found it difficult to measure the value of this project in dollar terms, they all experienced an improvement in the day-to-day efficiencies of their farms. To initiate change required committed and innovative leadership from the business owners. They needed to be able to communicate a shared vision with their workforce and to create an environment which encouraged everyone in the workplace to identify opportunities to do things better.
The key lesson was not so much what was learnt but the process that lead to the implementation of the learning. Although all the businesses were willing participants, they also had some reservation in regards to the amount of time they would have to commit to the project. They noted that having an outside consultant driving them in the initial stages was essential to maintaining their motivation to change. They also said that at some stage during the process they all underwent an epiphany where it suddenly became clear what they needed to do and why.
It was not so much a case of delivering knowledge and information to these owners as they were experienced farmers with access to most of the information they needed to instigate change, but rather tailoring a response to their individual business that would lead to that moment where the switch is flicked and the answer is obvious and this is where the outside assistance was of most value.
14 June 2011
ADVOCATE COLUMN 3rd WEEK MAY 2011
The roll out of ultra-fast broadband (UFB) in Whangarei is now well underway and the Rural Broadband Initiative (RBI) is also not far off being launched. One of the projects that the Northland Chamber of Commerce is involved in is chairing the Regional Digital Leadership Forum. Membership of this group comes from local government, industry representatives, the business sector and community organisations. UFB will provide every business access to reliable and ubiquitous broadband. It is the ability to do what you need to do, where you are, and without having to compromise on quality.
These initiatives will provide a reliable connectivity with sufficient capacity to suit the needs of most people within our community. But all this actually will do is provide the means. To make the case for UFB compelling will require skills and a secure online environment with which to access or create content. If this can be achieved then there will be real benefit for all Northlanders. For a change New Zealand and Northland have a competitive advantage when compared to other parts of the world in that the small scale of the project and the relatively simple nature of the structure will allow for a potentially inclusive and collaborative approach.
Given some of the unique challenges Northland faces that are brought about by the physical geographic nature of the region; health and education are two sectors that will be able to embrace technology to enhance their capability and capacity. Just like business, the question these groups will have to consider is what the outcomes are that this technology can provide and how will this change the way they operate?
Technology will not in itself provide a panacea to the problems facing Northland but it is another opportunity to grow our economy and strengthen the Region’s various isolated communities. Even if the immediate gains are made only in the area of increased capability to deliver education and raise literacy levels, this will have a positive benefit and should be encouraged.
The rewards of UFB connectivity that people have confidence in, is the potential to create businesses capable of providing or using the content and services to grow Northland’s economy. For business this is not just about doing things faster but about providing a platform on which rich content can be developed and used. This will require a mindset shift among many within business to embrace this technology in innovative ways.
The roll out of ultra-fast broadband (UFB) in Whangarei is now well underway and the Rural Broadband Initiative (RBI) is also not far off being launched. One of the projects that the Northland Chamber of Commerce is involved in is chairing the Regional Digital Leadership Forum. Membership of this group comes from local government, industry representatives, the business sector and community organisations. UFB will provide every business access to reliable and ubiquitous broadband. It is the ability to do what you need to do, where you are, and without having to compromise on quality.
These initiatives will provide a reliable connectivity with sufficient capacity to suit the needs of most people within our community. But all this actually will do is provide the means. To make the case for UFB compelling will require skills and a secure online environment with which to access or create content. If this can be achieved then there will be real benefit for all Northlanders. For a change New Zealand and Northland have a competitive advantage when compared to other parts of the world in that the small scale of the project and the relatively simple nature of the structure will allow for a potentially inclusive and collaborative approach.
Given some of the unique challenges Northland faces that are brought about by the physical geographic nature of the region; health and education are two sectors that will be able to embrace technology to enhance their capability and capacity. Just like business, the question these groups will have to consider is what the outcomes are that this technology can provide and how will this change the way they operate?
Technology will not in itself provide a panacea to the problems facing Northland but it is another opportunity to grow our economy and strengthen the Region’s various isolated communities. Even if the immediate gains are made only in the area of increased capability to deliver education and raise literacy levels, this will have a positive benefit and should be encouraged.
The rewards of UFB connectivity that people have confidence in, is the potential to create businesses capable of providing or using the content and services to grow Northland’s economy. For business this is not just about doing things faster but about providing a platform on which rich content can be developed and used. This will require a mindset shift among many within business to embrace this technology in innovative ways.
BUSINESS ADVOCATE COLUMN MAY 2011
No matter the amount of planning, risk-management or sheer hard work, there is always the potential for things to go wrong with a business. It is often due to circumstances over which the individual has no control. This is evident in the number of businesses that cease trading every year. What is also evident is that there are many more who are willing to pursue their dreams of building a business. Obviously it would be great if we could reduce the number of businesses exiting the market each year while at the same time as increasing the number of new start-up businesses as this would result in economic growth.
The focus on reducing this “churn” relies on increasing the capability of these businesses and the productivity that this would result in. Northland businesses are generally small enterprises and while scale can present difficulties, it also allows for more opportunity to be flexible and innovative. With the right support these businesses can become very resilient to external pressures and very good at managing risks. Often though there is no substitute for knowledge gained from experience.
At a recent Northland Chamber of Commerce event we were lucky enough to have Auckland businessman Murray Higgs speak on his experiences in the area of export and manufacturing. With previous experience as trade commissioner to New York and working on the management teams of a number leading New Zealand companies including Fisher and Paykel, he is well-placed to pass on his knowledge and lessons learnt along the way.
There were a number of key messages that could relate to local business and I am sure that all the audience took away different lessons. An overriding message that applies to any business venture was to know your market. No matter how wonderful you think it is, you cannot sell a service or product that the market does not want.
Although the speaker had been involved in a range of sectors and roles during his business life (which is not yet over) other constants he identified were quality of product or service and the importance of strong relationships with others in the market that you are operating in. This is about learning from experience to make your business stronger. Equally the result of continuing to reinforce failure should not come as a surprise. It all sounds so simple. Which it is if the business learns from its mistakes, modifies its behaviour and responds to the market in which it operates.
No matter the amount of planning, risk-management or sheer hard work, there is always the potential for things to go wrong with a business. It is often due to circumstances over which the individual has no control. This is evident in the number of businesses that cease trading every year. What is also evident is that there are many more who are willing to pursue their dreams of building a business. Obviously it would be great if we could reduce the number of businesses exiting the market each year while at the same time as increasing the number of new start-up businesses as this would result in economic growth.
The focus on reducing this “churn” relies on increasing the capability of these businesses and the productivity that this would result in. Northland businesses are generally small enterprises and while scale can present difficulties, it also allows for more opportunity to be flexible and innovative. With the right support these businesses can become very resilient to external pressures and very good at managing risks. Often though there is no substitute for knowledge gained from experience.
At a recent Northland Chamber of Commerce event we were lucky enough to have Auckland businessman Murray Higgs speak on his experiences in the area of export and manufacturing. With previous experience as trade commissioner to New York and working on the management teams of a number leading New Zealand companies including Fisher and Paykel, he is well-placed to pass on his knowledge and lessons learnt along the way.
There were a number of key messages that could relate to local business and I am sure that all the audience took away different lessons. An overriding message that applies to any business venture was to know your market. No matter how wonderful you think it is, you cannot sell a service or product that the market does not want.
Although the speaker had been involved in a range of sectors and roles during his business life (which is not yet over) other constants he identified were quality of product or service and the importance of strong relationships with others in the market that you are operating in. This is about learning from experience to make your business stronger. Equally the result of continuing to reinforce failure should not come as a surprise. It all sounds so simple. Which it is if the business learns from its mistakes, modifies its behaviour and responds to the market in which it operates.
ADVOCATE COLUMN 1st WEEK JUNE 2011
A recent news item on TV3’s The Nation (8th May) highlighted a number of Northland’s shortcomings particularly in the areas of economic and social performance. They identified a several factors contributing to this including, a low percentage of the working aged population engaged in paid employment, lack of productivity, political complacency and low literacy rates. There is also a high reliance on primary production, the low waged economy of the tourism sector and a very low rating base.
This news is not surprising and cannot be laid solely and the feet of the global financial crisis as the many of these factors have existed for a number of years. Northland’s relative economic performance has long been below other similar sized regions. With a GDP that is half of Taranaki and about a quarter of Australia the challenge of initiating change is immense and if the contributing factors are varied, then there is unlikely to be any single solution to the problem.
TV3 should not be criticised for highlighting these issues as the conversation needs to be had and solutions need to be found. Having said this other than some valid comments made by Far North Mayor Wayne Brown and Tai Tokerau MP Hone Harawira very little was offered within the programme to suggest our regional leaders had a clear vision of how we are to initiate the change required but that may have been part of the programmes agenda.
Considering our population base, Northland is well represented (in numbers at least) at central government. Five members of parliament are domiciled here either as list or electorate MPs. What remains to be seen from these leaders is clarity of vision on what action is required to remedy our situation at a regional level. With limited funding available for infrastructure investment throughout the country, we need of representatives at national level to speak with a single voice to ensure we have what we need to develop our economy and raise the standard of living for all Northlanders.
Infrastructure investment in itself will not provide the answers. Change will rely on a multi-disciplinary approach with all stakeholders taking some responsibility of the situation and reacting accordingly. A large part in the change relies on changing in individual mindsets while another part is equipping our youth so they can fulfil their potential. However what is needed above all else is strong leadership from those who represent us at all levels of government.
A recent news item on TV3’s The Nation (8th May) highlighted a number of Northland’s shortcomings particularly in the areas of economic and social performance. They identified a several factors contributing to this including, a low percentage of the working aged population engaged in paid employment, lack of productivity, political complacency and low literacy rates. There is also a high reliance on primary production, the low waged economy of the tourism sector and a very low rating base.
This news is not surprising and cannot be laid solely and the feet of the global financial crisis as the many of these factors have existed for a number of years. Northland’s relative economic performance has long been below other similar sized regions. With a GDP that is half of Taranaki and about a quarter of Australia the challenge of initiating change is immense and if the contributing factors are varied, then there is unlikely to be any single solution to the problem.
TV3 should not be criticised for highlighting these issues as the conversation needs to be had and solutions need to be found. Having said this other than some valid comments made by Far North Mayor Wayne Brown and Tai Tokerau MP Hone Harawira very little was offered within the programme to suggest our regional leaders had a clear vision of how we are to initiate the change required but that may have been part of the programmes agenda.
Considering our population base, Northland is well represented (in numbers at least) at central government. Five members of parliament are domiciled here either as list or electorate MPs. What remains to be seen from these leaders is clarity of vision on what action is required to remedy our situation at a regional level. With limited funding available for infrastructure investment throughout the country, we need of representatives at national level to speak with a single voice to ensure we have what we need to develop our economy and raise the standard of living for all Northlanders.
Infrastructure investment in itself will not provide the answers. Change will rely on a multi-disciplinary approach with all stakeholders taking some responsibility of the situation and reacting accordingly. A large part in the change relies on changing in individual mindsets while another part is equipping our youth so they can fulfil their potential. However what is needed above all else is strong leadership from those who represent us at all levels of government.
LEADER COLUMN MAY 2011
Last year’s Westpac Northland Business Excellence Awards provided a great opportunity for Northland businesses to celebrate what they achieved to date and to plan where they want to be in the future. They are also an important business development tool. This year in recognition of the business development component of the Awards, all entrants will be eligible and encouraged to participate in a training needs assessment undertaken by Northland Business Grow Team. Following this assessment an action plan will be prepared for that business and in some cases the individual businesses may be able eligible for funding to assist in developing their business capability.
The 2011 Westpac Northland Business Excellence Awards are now open for entrants and details of categories and timings can be viewed by visiting www.northchamber.co.nz and clicking on the Award’s link. Because we recognise the time involved in preparing for the Awards, this year we are extending the time businesses have to complete their entries. The Northland Chamber of Commerce urges all businesses within the region to seriously consider entering and we are willing to do all they can to assist businesses in the process.
Once again we will be running a series of workshops to assist potential entrants understand the evaluation process and what is required from them when completing their entry form. Following these workshops, the Chamber will also be in a position to provide additional tutoring to entrants if required. All entrants receive feedback from the judging panel focused on identifying areas of their business that may benefit from being revisited and improved.
The entrants will, be evaluated using a modified Baldrige criteria based closely on a standard developed by the New Zealand Business Excellence Foundation will be used. This system allows for the equitable comparison of businesses of unlike scale and nature based on measurable qualities. The judging process this year will be very similar to last year’s and it combines a desk-top business study followed up by on-site judging from the Westpac Northland Business Excellence Awards judging panel.
While every business person will ultimately judge the success of their own business on its bottom-line, past entrants have consistently commented that, the entry process provides real value to systematically examine their businesses and identify opportunities to improve what they do. By way of encouragement to enter the Awards this year, all category winners will receive a $6,500 media package to help them promote their businesses.
Last year’s Westpac Northland Business Excellence Awards provided a great opportunity for Northland businesses to celebrate what they achieved to date and to plan where they want to be in the future. They are also an important business development tool. This year in recognition of the business development component of the Awards, all entrants will be eligible and encouraged to participate in a training needs assessment undertaken by Northland Business Grow Team. Following this assessment an action plan will be prepared for that business and in some cases the individual businesses may be able eligible for funding to assist in developing their business capability.
The 2011 Westpac Northland Business Excellence Awards are now open for entrants and details of categories and timings can be viewed by visiting www.northchamber.co.nz and clicking on the Award’s link. Because we recognise the time involved in preparing for the Awards, this year we are extending the time businesses have to complete their entries. The Northland Chamber of Commerce urges all businesses within the region to seriously consider entering and we are willing to do all they can to assist businesses in the process.
Once again we will be running a series of workshops to assist potential entrants understand the evaluation process and what is required from them when completing their entry form. Following these workshops, the Chamber will also be in a position to provide additional tutoring to entrants if required. All entrants receive feedback from the judging panel focused on identifying areas of their business that may benefit from being revisited and improved.
The entrants will, be evaluated using a modified Baldrige criteria based closely on a standard developed by the New Zealand Business Excellence Foundation will be used. This system allows for the equitable comparison of businesses of unlike scale and nature based on measurable qualities. The judging process this year will be very similar to last year’s and it combines a desk-top business study followed up by on-site judging from the Westpac Northland Business Excellence Awards judging panel.
While every business person will ultimately judge the success of their own business on its bottom-line, past entrants have consistently commented that, the entry process provides real value to systematically examine their businesses and identify opportunities to improve what they do. By way of encouragement to enter the Awards this year, all category winners will receive a $6,500 media package to help them promote their businesses.
LEADER COLUMN JUNE 2011
Having had the opportunity to attend the Northland Chamber of Commerce’s recent Business After 5 event where the Whangarei District Council provided an opportunity for local business to view the model of the proposed Hundertwasser Museum that is currently the subject of consultation, I was surprised by the high level of support from attendee’s for this project. My surprise comes from the fact that in general most Council projects seem to be met with resistance or indifference.
The museum is being promoted as part of a suite of projects that the Council see as reinvigorating the Town Basin and the Commercial Business District. Much of the work is already in the pipeline and is contracted to local businesses. As well as reinvigorating the inner city, it will provide a much needed boost for Whangarei’s construction industry. This is not the only sector that could benefit from these initiatives as there will be many opportunities for the creative, tourism and retail sectors, either from direct involvement or through spillover.
These various projects combine to provide one other major opportunity. That is the chance for Whangarei to positively enhance its reputation to the rest of New Zealand and to overseas visitors. Recent negative bad press has been justified as the economic and social statistics cannot and should not be ignored. However there are many reasons why many of us love to live here and by providing attractants that encourage visitors to come and spend time in Whangarei will give those people time to discover many of the unique and positive things our communities have to offer.
This is not to say that all will benefit. Many retailers in the CBD have had a difficult time over the last 2 years with a low demand from consumers and not a lot of support from other key inner city stakeholders. Logic would suggest that initially this work will concentrate consumer activity in close proximity to the planned projects. However with at least the proposed Hundertwasser and the Hihiaua Cultural Centre projects having the capability to act as major attractants for visitors, there is the potential for an increased demand for all business.
As always creating attractants and improving our physical environment will not by themselves be enough to change our reputation. If we fail to deliver a consistently high quality of service or product the nothing will change.
Having had the opportunity to attend the Northland Chamber of Commerce’s recent Business After 5 event where the Whangarei District Council provided an opportunity for local business to view the model of the proposed Hundertwasser Museum that is currently the subject of consultation, I was surprised by the high level of support from attendee’s for this project. My surprise comes from the fact that in general most Council projects seem to be met with resistance or indifference.
The museum is being promoted as part of a suite of projects that the Council see as reinvigorating the Town Basin and the Commercial Business District. Much of the work is already in the pipeline and is contracted to local businesses. As well as reinvigorating the inner city, it will provide a much needed boost for Whangarei’s construction industry. This is not the only sector that could benefit from these initiatives as there will be many opportunities for the creative, tourism and retail sectors, either from direct involvement or through spillover.
These various projects combine to provide one other major opportunity. That is the chance for Whangarei to positively enhance its reputation to the rest of New Zealand and to overseas visitors. Recent negative bad press has been justified as the economic and social statistics cannot and should not be ignored. However there are many reasons why many of us love to live here and by providing attractants that encourage visitors to come and spend time in Whangarei will give those people time to discover many of the unique and positive things our communities have to offer.
This is not to say that all will benefit. Many retailers in the CBD have had a difficult time over the last 2 years with a low demand from consumers and not a lot of support from other key inner city stakeholders. Logic would suggest that initially this work will concentrate consumer activity in close proximity to the planned projects. However with at least the proposed Hundertwasser and the Hihiaua Cultural Centre projects having the capability to act as major attractants for visitors, there is the potential for an increased demand for all business.
As always creating attractants and improving our physical environment will not by themselves be enough to change our reputation. If we fail to deliver a consistently high quality of service or product the nothing will change.
16 March 2011
ADVOCATE COLUMN 3rd WEEK MARCH 2011
The recently released “Local Government Options for Northland” report prepared by Sir Peter Trapski and Dr Don Brash makes interesting reading and offers something for everyone. It supports the Whangarei District Council in undertaking the study saying that it has been a timely exercise and one that will well place Northland for any future reviews around local government reform.
The authors both suggested that change at sometime in the future was probably both inevitable and necessary. This was hardly surprising given that the status quo has been in place for some 20 years and as with all forms of government, change over time is to be expected. They differed in their opinion as to what was the optimum form that such change should take and on a matter of process Dr Brash noted that it was very likely the authors of the McKinley Douglas report were encouraged to modify the recommendation made in their draft report that a single unitary authority was the most appropriate form to be adopted
It was also interesting to note Dr Brash’s comments in regards to the role that the former Rodney District may play in any future reform of Northland’s local government and the potential of not one or two but three unitary authorities. It was also noted that the empowerment of Northland’s many communities and the stewardship of the Kaipara Harbour would also require a great deal of work to resolve.
Both authors noted there was very little desire or interest from the wider community to change the status quo. This was in part expressed by Sir Peter in saying that local government should have regard to the views of submitters and “must try other measures before giving further consideration to restructuring”. These other measures generally related to collaboration and co-operation.
There is an obligation on all local authorities to collaborate and co-operate however Sir Peter stated “sadly we saw little evidence of that”. There has been a positive shift in the willingness of Northland’s councils to collaborate in recent times but there is still range of options of shared costs that could be explored. Comments were made by the authors of the need to distinguish between cost to individuals and cost to council. I would suggest that all Northlanders should read this report and then examine the respective council’s behaviour over the coming year and see what changes this report brings about in regards to them adopting “other measures”.
The recently released “Local Government Options for Northland” report prepared by Sir Peter Trapski and Dr Don Brash makes interesting reading and offers something for everyone. It supports the Whangarei District Council in undertaking the study saying that it has been a timely exercise and one that will well place Northland for any future reviews around local government reform.
The authors both suggested that change at sometime in the future was probably both inevitable and necessary. This was hardly surprising given that the status quo has been in place for some 20 years and as with all forms of government, change over time is to be expected. They differed in their opinion as to what was the optimum form that such change should take and on a matter of process Dr Brash noted that it was very likely the authors of the McKinley Douglas report were encouraged to modify the recommendation made in their draft report that a single unitary authority was the most appropriate form to be adopted
It was also interesting to note Dr Brash’s comments in regards to the role that the former Rodney District may play in any future reform of Northland’s local government and the potential of not one or two but three unitary authorities. It was also noted that the empowerment of Northland’s many communities and the stewardship of the Kaipara Harbour would also require a great deal of work to resolve.
Both authors noted there was very little desire or interest from the wider community to change the status quo. This was in part expressed by Sir Peter in saying that local government should have regard to the views of submitters and “must try other measures before giving further consideration to restructuring”. These other measures generally related to collaboration and co-operation.
There is an obligation on all local authorities to collaborate and co-operate however Sir Peter stated “sadly we saw little evidence of that”. There has been a positive shift in the willingness of Northland’s councils to collaborate in recent times but there is still range of options of shared costs that could be explored. Comments were made by the authors of the need to distinguish between cost to individuals and cost to council. I would suggest that all Northlanders should read this report and then examine the respective council’s behaviour over the coming year and see what changes this report brings about in regards to them adopting “other measures”.
15 March 2011
LEADER COLUMN MARCH 2011
How to create economic growth is not a new question. Since at least the late 1980’s (and probably at lot earlier), government, economists and the wider business community have given a great deal of time and energy examining ways to achieve growth. During this period, on average it would be hard to argue that any single policy has resulted in a quantum change in our economic performance.
At a regional level this is certainly the case. It is difficult to see the establishment of a high number of companies with large turnovers developing here in the near future. Without such companies many believe that it would be difficult to develop a vibrant regional economy. Yet without a vibrant regional economy Northland’s relative regional performance measured against various socio-economic indicators will continue to be poor.
Much of what has been done in the past has not resulted in significant growth. The reality is that for Northland’s performance to improve, it will require growth in an order that is more than just incremental. We need to look at those things that we have control of changing and implementing. One such thing is improving our business environment at a regional level in a manner that will encourage and empower Northlanders to achieve their economic potential.
What sort of change is going to drive people to start up and grow businesses in Northland? It is often said that many business people are risk takers, particularly those who we consider to be innovators or entrepreneurs. In truth we are probably assigning a label to this group unfairly. They often have a passion for, and knowledge of the product or service they wish to make or manufacture, that when accompanied by some rigorous analysis can mitigate much of the risk that many observers would perceive is involved in that venture.
We as a community should be ensuring that we create an environment that offers support to such people at all levels from the time they start up until the time they decide to pass their business on to others and take on new challenges. I would suggest that everyone in our region examine this year’s council annual plans and ask if these plans will create such an environment and then make submissions to their respective councils accordingly. These people can generate new wealth if we all do what is within our spheres of influence to remove unnecessary barriers or to provide more certainty around outcomes.
How to create economic growth is not a new question. Since at least the late 1980’s (and probably at lot earlier), government, economists and the wider business community have given a great deal of time and energy examining ways to achieve growth. During this period, on average it would be hard to argue that any single policy has resulted in a quantum change in our economic performance.
At a regional level this is certainly the case. It is difficult to see the establishment of a high number of companies with large turnovers developing here in the near future. Without such companies many believe that it would be difficult to develop a vibrant regional economy. Yet without a vibrant regional economy Northland’s relative regional performance measured against various socio-economic indicators will continue to be poor.
Much of what has been done in the past has not resulted in significant growth. The reality is that for Northland’s performance to improve, it will require growth in an order that is more than just incremental. We need to look at those things that we have control of changing and implementing. One such thing is improving our business environment at a regional level in a manner that will encourage and empower Northlanders to achieve their economic potential.
What sort of change is going to drive people to start up and grow businesses in Northland? It is often said that many business people are risk takers, particularly those who we consider to be innovators or entrepreneurs. In truth we are probably assigning a label to this group unfairly. They often have a passion for, and knowledge of the product or service they wish to make or manufacture, that when accompanied by some rigorous analysis can mitigate much of the risk that many observers would perceive is involved in that venture.
We as a community should be ensuring that we create an environment that offers support to such people at all levels from the time they start up until the time they decide to pass their business on to others and take on new challenges. I would suggest that everyone in our region examine this year’s council annual plans and ask if these plans will create such an environment and then make submissions to their respective councils accordingly. These people can generate new wealth if we all do what is within our spheres of influence to remove unnecessary barriers or to provide more certainty around outcomes.
03 March 2011
ADVOCATE COLUMN 1st WEEK MARCH 2011
When the performance of our regional economy is discussed, generally the importance of increasing Northland’s productivity is highlighted. Productivity is often measured in terms of gross domestic product per capita or income per capita. Looking at New Zealand’s economic and business profiles indicates what a challenge this presents. New Zealand’s low productivity is further reflected in the fact that an overwhelming majority (97 percent) of businesses is small to medium sized enterprises yet they account for only about 40% of our economic output.
In part this has to do with the nature of these businesses, which by necessity are forced to focus on the day-to-day running of their operations and often with very limited resources. These conditions result in business decisions being reactive rather than strategic. Yet while there are issues relating to increased productivity that can be resolved by way of improved training and experience over time, another factor critical to increased productivity and sustainability is governance.
Although some New Zealand businesses have good governance models, most do not. This is hardly surprising since a large percentage of them are small scale of family businesses. When family businesses do succeed, it is often due to an in-depth knowledge of the sector in which they operate and a long-term view.
It is when developing a long-term view that good governance is critical, it provides a framework for shared objectives, planning for growth and most importantly developing a succession pathway for future generations or other stakeholders. Lack of good governance is reflected in the fact that only a very small percentage of family businesses pass to a fourth generation.
In simple terms it is about deciding where the business owner wants to be in the future and implementing a series of actions that will enable this to occur. In doing so the business owner is forced to identify what opportunities they can take advantage of and what factors need to be mitigated or remedied to ensure their long-term goals can be achieved.
Governance through diverse and capable board members is not the exclusive domain of large business. All business can benefit from it and all business should examine developing governance models appropriate to the scale of their enterprises and aspirations. Through their networks business groups such as the Northland Chamber of Commerce provide the opportunity for small businesses to access a capable and diverse range people who can assist in these roles.
When the performance of our regional economy is discussed, generally the importance of increasing Northland’s productivity is highlighted. Productivity is often measured in terms of gross domestic product per capita or income per capita. Looking at New Zealand’s economic and business profiles indicates what a challenge this presents. New Zealand’s low productivity is further reflected in the fact that an overwhelming majority (97 percent) of businesses is small to medium sized enterprises yet they account for only about 40% of our economic output.
In part this has to do with the nature of these businesses, which by necessity are forced to focus on the day-to-day running of their operations and often with very limited resources. These conditions result in business decisions being reactive rather than strategic. Yet while there are issues relating to increased productivity that can be resolved by way of improved training and experience over time, another factor critical to increased productivity and sustainability is governance.
Although some New Zealand businesses have good governance models, most do not. This is hardly surprising since a large percentage of them are small scale of family businesses. When family businesses do succeed, it is often due to an in-depth knowledge of the sector in which they operate and a long-term view.
It is when developing a long-term view that good governance is critical, it provides a framework for shared objectives, planning for growth and most importantly developing a succession pathway for future generations or other stakeholders. Lack of good governance is reflected in the fact that only a very small percentage of family businesses pass to a fourth generation.
In simple terms it is about deciding where the business owner wants to be in the future and implementing a series of actions that will enable this to occur. In doing so the business owner is forced to identify what opportunities they can take advantage of and what factors need to be mitigated or remedied to ensure their long-term goals can be achieved.
Governance through diverse and capable board members is not the exclusive domain of large business. All business can benefit from it and all business should examine developing governance models appropriate to the scale of their enterprises and aspirations. Through their networks business groups such as the Northland Chamber of Commerce provide the opportunity for small businesses to access a capable and diverse range people who can assist in these roles.
16 February 2011
BUSINESS ADVOCATE ARTICLE JANUARY 2011
The start of the new year may well herald in the first tangible signs of change in Northland’s economic environment. Treasury is predicting growth in excess of three per cent, together with higher wages and a reduction unemployment numbers. This is not to say that many businesses are still experiencing difficult times but this news is accompanied by anecdotal evidence that things are finally beginning to improve.
This differs from last year where many businesses felt there was little correlation between what they were hearing from economic analysts in regards to positive growth and what they were seeing in their own operations. This lack of correlation was reflected in the low level of confidence shown in the Chamber of Commerce 2010 last quarterly Business Confidence Survey
As well as a slow return to positive growth there is also the Rugby World Cup which presents an opportunity for Northland businesses to market Northland to the world market as a place to visit, live or do business with. NZ 2011 Business Club has been created by the government to assist those businesses that do not have the resources to leverage business during this event. Local and overseas business-people can join the Club for no cost and then have the opportunity to be put in touch with each other at events showcasing local business.
However while the Rugby World Cup presents an opportunity for Northland business in the short-term, the region needs to look carefully as to what our long-term economic future is. If recent times have taught us anything it is the need to develop a robust and diverse regional economy based on well governed, sustainable businesses. This will require us to examine our existing economic profile and to identify those sectors that present opportunity for real growth.
One such area is manufacturing which is already a significant contributor to the regional GDP. More importantly in Whangarei almost 300 of these businesses have either the Regional or District Council as their landlords. If the councils believe that being landlords of large parcels of non-strategic (whatever this means) land is part of their core business then this provides these councils an opportunity to assist, or at the very least no hinder the development of those businesses.
Encouraging inward investment and new business to Northland is an admirable aspiration but ensuring existing enterprises have an environment in which they can prosper and grow our regional economy is equally important.
The start of the new year may well herald in the first tangible signs of change in Northland’s economic environment. Treasury is predicting growth in excess of three per cent, together with higher wages and a reduction unemployment numbers. This is not to say that many businesses are still experiencing difficult times but this news is accompanied by anecdotal evidence that things are finally beginning to improve.
This differs from last year where many businesses felt there was little correlation between what they were hearing from economic analysts in regards to positive growth and what they were seeing in their own operations. This lack of correlation was reflected in the low level of confidence shown in the Chamber of Commerce 2010 last quarterly Business Confidence Survey
As well as a slow return to positive growth there is also the Rugby World Cup which presents an opportunity for Northland businesses to market Northland to the world market as a place to visit, live or do business with. NZ 2011 Business Club has been created by the government to assist those businesses that do not have the resources to leverage business during this event. Local and overseas business-people can join the Club for no cost and then have the opportunity to be put in touch with each other at events showcasing local business.
However while the Rugby World Cup presents an opportunity for Northland business in the short-term, the region needs to look carefully as to what our long-term economic future is. If recent times have taught us anything it is the need to develop a robust and diverse regional economy based on well governed, sustainable businesses. This will require us to examine our existing economic profile and to identify those sectors that present opportunity for real growth.
One such area is manufacturing which is already a significant contributor to the regional GDP. More importantly in Whangarei almost 300 of these businesses have either the Regional or District Council as their landlords. If the councils believe that being landlords of large parcels of non-strategic (whatever this means) land is part of their core business then this provides these councils an opportunity to assist, or at the very least no hinder the development of those businesses.
Encouraging inward investment and new business to Northland is an admirable aspiration but ensuring existing enterprises have an environment in which they can prosper and grow our regional economy is equally important.
ADVOCATE COLUMN 3rd WEEK FEBRUARY 2011
Having someone to listen to you, occasionally challenge the way you do things and offer guidance based on their own experience can give a business owner the confidence that they are doing things the right way or at the very least are not missing out on potential opportunities to develop. Business Mentors New Zealand ( www.businessmentors.org.nz ) provides a mentoring service to businesses that have been operating for at least six months and is the owner’s main source of income. A registration fee of $100 + GST applies, which entitles you to use the mentoring service for two years. This is the only cost to you.
When a business is struggling they need all the help they can get. Using a mentor allows an independent perspective that may not be apparent to the owner. Many people do not engage a mentor until they notice things starting to go wrong with their business. There is merit in getting a mentor or outside assistance before you think you need it. Early involvement helps avoid pitfalls and gives the business the best chance of succeeding from the start.
Whangarei is blessed with a wide range of skilled and experienced accountants, lawyers, bankers and other business consultants that can offer assistance to businesses owners. Government departments also are a valuable resource for a struggling enterprise and the support they can provide should not be overlooked. The Northland Chamber of Commerce assists businesses in a number ways including on occasions using its network of members to help operators who may not meet the registration criteria of Business Mentors New Zealand.
Mentors may have many different reasons for giving up their time to assist struggling businesses. Apart from a desire to help Northland’s economic development it provides the opportunity for people who may are no longer be active in the business community to stay in contact with an environment that has been a large part of their life. Although all find the experience rewarding, the Northland Chamber of Commerce is always in search of new mentors to reduce the burden on these volunteers to assist new clients.
Growing Northland business is as much about ensuring existing businesses succeed and flourish as it is about encouraging inward investment and new business. The trickle-down effects from a business failing, impact on the entire community. Equally all Northlanders benefit from the presence of robust and sustainable local companies consistently providing quality service and products.
Having someone to listen to you, occasionally challenge the way you do things and offer guidance based on their own experience can give a business owner the confidence that they are doing things the right way or at the very least are not missing out on potential opportunities to develop. Business Mentors New Zealand ( www.businessmentors.org.nz ) provides a mentoring service to businesses that have been operating for at least six months and is the owner’s main source of income. A registration fee of $100 + GST applies, which entitles you to use the mentoring service for two years. This is the only cost to you.
When a business is struggling they need all the help they can get. Using a mentor allows an independent perspective that may not be apparent to the owner. Many people do not engage a mentor until they notice things starting to go wrong with their business. There is merit in getting a mentor or outside assistance before you think you need it. Early involvement helps avoid pitfalls and gives the business the best chance of succeeding from the start.
Whangarei is blessed with a wide range of skilled and experienced accountants, lawyers, bankers and other business consultants that can offer assistance to businesses owners. Government departments also are a valuable resource for a struggling enterprise and the support they can provide should not be overlooked. The Northland Chamber of Commerce assists businesses in a number ways including on occasions using its network of members to help operators who may not meet the registration criteria of Business Mentors New Zealand.
Mentors may have many different reasons for giving up their time to assist struggling businesses. Apart from a desire to help Northland’s economic development it provides the opportunity for people who may are no longer be active in the business community to stay in contact with an environment that has been a large part of their life. Although all find the experience rewarding, the Northland Chamber of Commerce is always in search of new mentors to reduce the burden on these volunteers to assist new clients.
Growing Northland business is as much about ensuring existing businesses succeed and flourish as it is about encouraging inward investment and new business. The trickle-down effects from a business failing, impact on the entire community. Equally all Northlanders benefit from the presence of robust and sustainable local companies consistently providing quality service and products.
LEADER COLUMN FEBRUARY 2011
Who would want to be a local body politician? Having a relatively high level of debt and needing to make some significant investment in infrastructure has created classic economic dilemma. There will only ever be a limit number of sources of income for a council and not all of these will be popular with all sectors of the community.
Obviously increased rates will always result in robust debate over the equity or otherwise of the existing rating system and to the Whangarei District Council’s credit they have recognised the need to re-examine current policy used to determine rates. Increasing the base from which rates are collected is another option and any initiative to grow the number of ratepayers has benefit. However r is currently little or no desire among developers to create new subdivisions particularly in light of policy regarding developer contributions (which are another revenue source).
Borrowing to invest in trans-generational infrastructure has its place if existing debt levels are sustainable. This still requires the capacity at some stage to generate sufficient income to repay the debt. If not this is just a further burden to be met by future generations due to the past and present generation’s lack of financial prudence.
Another option is selling existing non-essential assets (say land) and use funds from those sales to reinvest in essential assets (such as infrastructure). This is a valid approach but difficulty arises where the assets sold are also a source of income (leasehold land). In these instances there may be a desire to compensate for this loss of income by demanding a high premium.
This premium when attached to land sales is problematic. In a free market there will always be someone who may have their reasons to pay above market price. However given that recent economic difficulties arose out of global businesses having debt in excess of the value of the assets they were secured against, what banker, accountant or financial adviser would counsel their client to become encumbered with such debt? I am sure there is an argument regarding appreciation of property over time but this is more about property speculation than business development.
None of these courses of action may be particularly palatable, but this is a conversation that all ratepayers need to participate in and one that will require a high level of understanding if our counsels are to come to a satisfactory solution to the allocation of these scarce resources.
Who would want to be a local body politician? Having a relatively high level of debt and needing to make some significant investment in infrastructure has created classic economic dilemma. There will only ever be a limit number of sources of income for a council and not all of these will be popular with all sectors of the community.
Obviously increased rates will always result in robust debate over the equity or otherwise of the existing rating system and to the Whangarei District Council’s credit they have recognised the need to re-examine current policy used to determine rates. Increasing the base from which rates are collected is another option and any initiative to grow the number of ratepayers has benefit. However r is currently little or no desire among developers to create new subdivisions particularly in light of policy regarding developer contributions (which are another revenue source).
Borrowing to invest in trans-generational infrastructure has its place if existing debt levels are sustainable. This still requires the capacity at some stage to generate sufficient income to repay the debt. If not this is just a further burden to be met by future generations due to the past and present generation’s lack of financial prudence.
Another option is selling existing non-essential assets (say land) and use funds from those sales to reinvest in essential assets (such as infrastructure). This is a valid approach but difficulty arises where the assets sold are also a source of income (leasehold land). In these instances there may be a desire to compensate for this loss of income by demanding a high premium.
This premium when attached to land sales is problematic. In a free market there will always be someone who may have their reasons to pay above market price. However given that recent economic difficulties arose out of global businesses having debt in excess of the value of the assets they were secured against, what banker, accountant or financial adviser would counsel their client to become encumbered with such debt? I am sure there is an argument regarding appreciation of property over time but this is more about property speculation than business development.
None of these courses of action may be particularly palatable, but this is a conversation that all ratepayers need to participate in and one that will require a high level of understanding if our counsels are to come to a satisfactory solution to the allocation of these scarce resources.
02 February 2011
ADVOCATE COLUMN 1st WEEK FEBRUARY 2011
Northland’s 2010 Economic Profile (Infometrics Limited) makes interesting reading. Not for our poor economic performance when compared to other regions, but rather for the potential this report identifies. Surprisingly (to me) the largest contributor to regional GDP was not the agriculture, fishing and forestry sector as many would predict but rather the manufacturing sector which accounts for 16% of our GDP.
At a more detailed level it showed that tourism still makes a significant contribution (6%) to our GDP. The tourism sector generated $196 million in economic output in Northland in 2010. Over the last decade tourism in Northland has grown at just over 2% pa which is in line with the national average.
There was a decline in the overall number of business units but there is still growth (albeit slight) on average over the last decade. The number of business units is a key indicator of the preparedness of entrepreneurs to take risk and start new business. Any real change in our comparative performance against other regions will require a major shift in our business environment to stimulate entrepreneurial activity.
Primary industry is interesting because this is one area where Northland performs significantly above the national average. Accompanying this is the fact that Northland went against the national trend and grew value adding to primary production by 16.5%. This result along with the role manufacturing plays in our regional economy reinforces the need to concentrate on developing the potential of these sectors to stimulate our economy.
By themselves the sectors discussed above may lack the growth capacity to alone to significantly lift Northland’s economic performance. We need to find ways to grow export values and volumes in new areas such as IT, clean technology and energy or high-value food products.
As far as continuing to measure our success or otherwise by comparison with other regions, the Northland Chamber of Commerce thinks it may be worth considering having some absolute targets or a range of sustainable economic, social and environmental goals that when achieved the consequences would enable our economy to grow and the living standards for all of us to be improved.
Northland needs goals that all of us can relate to and become motivated and passionate to achieve. While there is both merit and room for aspiration, the goals we choose for Northland need to be realistic and achievable by a larger tier of business across a wider front.
Northland’s 2010 Economic Profile (Infometrics Limited) makes interesting reading. Not for our poor economic performance when compared to other regions, but rather for the potential this report identifies. Surprisingly (to me) the largest contributor to regional GDP was not the agriculture, fishing and forestry sector as many would predict but rather the manufacturing sector which accounts for 16% of our GDP.
At a more detailed level it showed that tourism still makes a significant contribution (6%) to our GDP. The tourism sector generated $196 million in economic output in Northland in 2010. Over the last decade tourism in Northland has grown at just over 2% pa which is in line with the national average.
There was a decline in the overall number of business units but there is still growth (albeit slight) on average over the last decade. The number of business units is a key indicator of the preparedness of entrepreneurs to take risk and start new business. Any real change in our comparative performance against other regions will require a major shift in our business environment to stimulate entrepreneurial activity.
Primary industry is interesting because this is one area where Northland performs significantly above the national average. Accompanying this is the fact that Northland went against the national trend and grew value adding to primary production by 16.5%. This result along with the role manufacturing plays in our regional economy reinforces the need to concentrate on developing the potential of these sectors to stimulate our economy.
By themselves the sectors discussed above may lack the growth capacity to alone to significantly lift Northland’s economic performance. We need to find ways to grow export values and volumes in new areas such as IT, clean technology and energy or high-value food products.
As far as continuing to measure our success or otherwise by comparison with other regions, the Northland Chamber of Commerce thinks it may be worth considering having some absolute targets or a range of sustainable economic, social and environmental goals that when achieved the consequences would enable our economy to grow and the living standards for all of us to be improved.
Northland needs goals that all of us can relate to and become motivated and passionate to achieve. While there is both merit and room for aspiration, the goals we choose for Northland need to be realistic and achievable by a larger tier of business across a wider front.
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