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.

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.
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.
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.
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.
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.