As I arrive at Trademark Mitre 10, I can see Bob Partridge, and he looks the picture of happiness … but then, why wouldn’t he? After all, it’s the first sunny day in weeks. Or maybe its because he’s come straight from the gym; either way, the greeting is genuine, and it’s infectious. I’m greeted like an old family friend, but I have Bob’s measure and can see his strategy, because he’s just being nice to disarm me. I decide to meet him halfway and up the ante, by congratulating him for being in the best business, “How good is it running a hardware store?” I ask. “Pretty good,” he replies, beaming even more.

A former bank executive, Bob joined the other owners Brian Burgmann and Dennis Shepherd (who had previous hardware experience) to launch the Trademark Mitre 10, originally located at the Shores retail centre in 1989. But in 1996 it was time to move to Barton Crescent, which was a vacant lot at the time. Bob admits that his conservative nature has probably been an asset, but without him saying, I get a sense of customer focus too. From the very early days, Bob, Brian and Dennis mapped out their plans to succeed, and they knew that before too long, serious competition would arrive – and predictably it did, on the old Telstra site.

To their credit, the three owners,had already identified how the business would change and developed two marketing strategies that have proven to be enormously resilient and effective: segmentation and differentiation.

“Firstly, we were determined to build strong relationships with the trade,” says Bob, reminiscing as if it were yesterday, “because they are the bread and butter of the building supplies industry, so we deliberately got to know them.” To this day, much of the operation is designed to meet the needs of builders and tradies who want sharp prices, the latest in new products and quick deliveries. Bob chuckles when he illustrates this with the story of a builder who called to order a truckload of cement: “When would you like that delivered?”asked the rep. “Now,” replied the customer.

The other side of the business is the retail store that you and I visit for paint, hardware, power tools and timber products. Armed with the knowledge that the chain’s arrival was imminent, a point of difference was needed.

No prizes for guessing what Bob and his fellow owners chose: customer service. It’s not hard to notice several staff on the floor helping shoppers as we walk past. An intuitive and astute idea, given that 10 years on, it’s still working. To me, this is a classic case of creating a successful niche due to engaged staff. They who know that customers need hardware and building products, but more importantly, they want attentive and knowledgeable service. Says Bob, “Some of our staff have forgotten more that I know.”

Except for one thing, doesn’t the internet provide all the knowledge that DIY buyers need? Don’t they browse online then go and buy it online from the cheapest store?

“They might do that in fashion, but in hardware customers prefer to look, feel, touch and see before they buy, and that’s where our staff can help them to make the right choice,” responds Bob.

It seems that I’m not the only one who has a head full of questions when buying a shower rose or a tin of varnish, but clearly they are onto this. They are also onto new products and services too and the area that’s taking big leaps forward are power tools, which are becoming lighter thanks to smaller batteries, more powerful and easier to handle. There are also so many of them, it’s quite amazing. I don’t know what they’re for, so why do I want one? (Thanks for showing me now, Bob; Father’s Day has just passed)!

I wonder if some of these changes are designed for women in mind, having noticed some of the ladies’ fine efforts during The Renovators competition recently. Bob agrees that female enthusiasts represent a considerable buyer segment now –substantial enough to run information nights just for ladies.

In retrospect, like most good ideas, these strategies seem logical; yet as we know, creating plans that deliver sustained growth is far from easy. Bob explains that the business benefits from transparency between himself, Brian and Dennis, where each of the owners have their responsibilities, yet consult each other on most decisions. So turning to the future, how does Bob see the building supplies trade and hardware in Port Macquarie in years to come?

“This place will go through the roof,” he indicates.

Although not happy with the slow release of land, there is a note of optimism that the attributes fuelling our growth now are sustainable. As an example, Sovereign Hills is mentioned, and I’m forced to ask what the value equation there is. Like many of us, Bob is not sure. Enough said.

Expect the new Woolworths’ brand Masters to arrive sometime soon, after they get a site. They will have a nice little battle with Bunnings, but this does not seem to worry Bob – which is wise, because he knows he can’t stop them. What Bob, Brian and Dennis will do is continue what Trademark Mitre 10 does best, and that is look after their customers.

You feel this when entering Trademark Mitre 10. It’s much like being greeted as that old family friend.

Tell us, John, how you did you come to live in Port Macquarie?

We came to Port on a holiday after the major hailstorm in Sydney’s eastern suburbs in 2001 and stayed in a guest house where the Observatory Resort currently sits. We had 3 days up here and thought this is where we could spend some of the next chapter of our lives. So, we bought an apartment in Burrawan St in 2002, as a holiday place. Although we were still living in Balmain, soon after this, we found that we were spending so much time here than Sydney, because of our holiday destination.

Were you working at the time?

Yes, I opened an office in the Galleria in William St in addition to our existing office in Rozelle, but realised that sitting in this office was not satisfying. I’m gregarious by nature – I love talking to people, so I should be out and listening to people. Then after 12 months, I thought that I could make more of a contribution on a pro bono basis to the community and closed both offices.

Let’s wind the clock back a few years. What can you tell us about your corporate experience?

I started work at the stock exchange on the floor as an operator, which I loved, in the heady days of the oil and mining boom, mark 1, and I left there to go into the food industry into a family business, where I learned an enormous amount about agriculture and horticulture value adding. We were taken over by Reckitt & Coleman, and soon after I became the Commercial Director (looking after non retail products), involved in many global projects.

How did the Meyers Strategy Group come about?

It began in 1986. We started day one with 3 clients: Goodman Fielder, Cottees Foods, and All States Food Services, who were pioneers in prepared fresh foods for the foodservice market. We worked for State and Federal Governments, providing a range of consulting services, including an international benchmarking study for the Australian wine industry.

Other projects included strategic business studies looking from the consumer back to the farm gate. Again, others included determining market entry strategies into Asia and effective methods to add value to food related businesses.

Then Port Macquarie came along as an opportunity?

That’s right. It was a matter of engaging with opportunities where I could make a pro bono contribution. I met Trevor Sargeant from Council, and he had some quite exciting ideas to do with a food and agriculture program, which led us to the Farmers’ Markets and the forerunner to the Tastings of the Hastings, the Harvest Picnic at Cassegrain.

Tell us about the Farmers’ Markets. Did you anticipate that they would be a tremendous success?

We had confidence that our extensive research would pay off. It was a lot of work by many people. Trevor would be there at 4am in the morning, and I’d be soon after for several years. A breath of fresh air was the tireless work of Sonia Fingleton and her vision and commitment.

What underpins the success?

Understanding the needs of the local produce farmers that they can make money from value adding their food products. Matching them with buyers who have developed a taste for fresh, natural local produce and value added products.

You’ve been on a number of community committees and panels over the years. Tell us about those?

I was fortunate to meet and work with Wayne Richards and then Rob Drew soon after we got here, and I was fortunate to relate to their vision.

I was encouraged to put my hand up to be part of the Economic Development Board, which was both challenging and rewarding. Then I put my tourism hat on for several years. I was involved in setting up what became the major events board, which grew into the Opportunities Board. I also sat on the Airport Committee.

What were some of the successes you had?

We were successful in attracting Virgin Airlines to Port Macquarie and ensuring that the significant contribution from the tourism industry was recognised. We also played a small role in finalising the bid for the Triathlon. I formed some wonderful friendships during those years and without having any conflicts of interests, it was satisfying to participate and make a strategic contribution.

So can you help us define what strategy planning is about and why is it essential in business?

Some strategists when asked that question will quote you Tsun Tzu, The Art of War – especially the concept of loving your enemy and keeping them close. The issues to me are very clear: you really have to know all about your competition and you have to know all about the market place that you want to compete in, as well as your own capabilities and shortfalls. It’s like planning a battle; you need to know which parts you can afford to lose, so that you can win the war.

Then there’s the adage to that “never let your enemy recover so that if they are on the offensive, you can take advantage of this”. All this planning and review has implications for your marketing branding and distribution. So strategy requires effective implementation tactics to ensure you have feedback and data coming back to you all the time, to check that what you’re doing reflects the market situation and your place in it.

If the success of strategy is understanding the market place and its dynamics, why is it that so many smaller businesses fail?

This might be a generalisation, but only a limited number of small and medium businesses can afford research (in time and money).

They need to fully understand key indicators and how to respond. Many intending small start up business people come to us [StartUp, of which John is President] with a range of incredible ideas. Too many want to fire the starting gun without a real understanding of the rules that apply in their intended market.

Does this suggest they are time poor as well as cash poor?

Absolutely.

So how does a brand new business find out about their markets?

Bureau of Statistics and generally available public domain data and material is usually too old. This requires an innovative approach to research to find out about your potential competitors or existing players and find out from them what you can. Using your nous to get that information might make the difference between 6 and 12 months, or being in business forever.

But it doesn’t stop there, does it?

Not at all, because consumers, markets and competitors change all the time, so we need to continuously monitor, change and improve.

Let’s change tack a little. What can this area do to put its hand up and gain early access to the NBN to accelerate our business opportunities?

Funny you should ask this, because you might remember the Administrator, Garry Payne, only 3 months ago publicly supported my request for a serious study into a virtual centre for excellence to drive innovation, conduct research and give our businesses the opportunity to embrace innovation.

This is a dream of mine, because we have so many opportunities, such as one for intensive horticulture, and we’re only a few hours away from significant Sydney and Brisbane markets.

Where is Council up to with this?

It’s right on top of their agenda, and we’re involved in submitting for funding to support the centre for excellence, as we speak.

I notice you have been drafted onto a new panel. What is this all about?

The Administrator, Garry Payne, kindly asked 6 businesspersons to join him to look at Port Macquarie on a regional basis and identify areas of opportunity, be it new industries, upgrading or integrating the airport, as well as a range of issues under the heading of economic development. The charter has been agreed, and we’re about to commence our work. But one thing I like is that we’re not about reports or minutes; we’re about making things happen and influencing decision makers.                                 > You seem optimistic about the fortunes of Port Macquarie. What underpins this?

I never cease to be amazed about the Port people whom I meet who have a smile on their face, who are confident and who have that ‘can do’ approach.

It’s delightful and stimulating to be around them. If I can do anything to enhance their work, then that’s a good legacy to leave behind.

What’s your motivation for helping others?

My motivation comes from a 36 year association with Rotary in that I believe that if I can help others in business then we’ll both be better off.

Where does John Meyers get time to relax?

We walk every morning and never stop learning. We try to travel as much as possible, and we are off again several times in 2011. My wife Clare has been involved with the last state election campaign for nearly 7 months. It’s time to smell more roses.

Thank you John, for spending time with us.

My favourites, though, are always about corporate types and what they’re doing. The rise and decline of some of our most high profile business leaders, from John Spalvins to Alan Bond, John Elliott, Chris Skase and of course, Packer, has been intriguing, perplexing and occasionally amusing. Many of the failures have been gazumped by their own shortcomings or economic forces, but I can’t recall a time like the present where the threats to large sectors of our economy have been so obvious, potentially dreadful and yet self imposed.

There are two topics that will adversely impact us if they come to fruition, and the first of which I’ll discuss here.

Until a few weeks ago, I was vaguely aware of the RSL and Ex Services and Sporting clubs complaining about proposed changes about to be imposed by the Feds. Not being a club regular, you might say that I was out of the loop, so I didn’t pay much attention; after all, there are always interest groups grinding an axe.

Since I’m not a fan of the incumbent federal administration, I was reluctant to ask for their side of the story, so I thought that we should an expert’s perspective. Prepared to see what all the fuss is about and for a persuasive argument, I went to see CEO of Port City Bowling Club, Larry Collins.

With 10,000 members, 55 staff and turnover of around $8 million, Port City is a strong force within our business community. Yet the member profile is much wider than the cliché of a 60 year old in front of a pokie. I asked Larry for a profile of his customers and he responds by saying, “Yes … the demographic is over 40, but they might be diners, bingo players, punters on a Saturday afternoon, Keno players, tennis players or bowlers, friends sharing a meal, business types attending a function and those who come in to try their luck on a gaming machine.”

Last year Port City donated about $175,000 to community groups sporting clubs and local not-for-profit organisations: “A bit down on the previous year,” says Larry in a reflective manner. Revenues from gaming were about $5.8 million, which is 72% of total revenue, so the club is quite reliant on gaming revenue.  Last year Port City paid $1.7m in taxes, $1.1m in gaming machine levies and $1.2 million in GST.

Of the management challenges, Port City has some very attractive expansion plans on the drawing board that will benefit our members and the wider community. “We have the finances under control, but what we can’t control is the future,” says Larry. “Because of the impact of the proposed Mandatory Pre-Commitment (MPC) scheme,  my Board has put our expansion on hold.”

Is this another post election surprise like the dreaded carbon tax? It seems so. In return for the votes of Senators Wilkie and Xenophon, the feds have pledged their agreement to implement the proposed new MPC, requiring all gaming machine players to formally register and declare a gambling limit before receiving a smart card. Much of the implementation detail is missing; however, the logic seems that to ‘fix’ the problem of out of control gaming machine players, it seems a one size fits all approach is planned.

The clubs know that problem gamblers exist, just as there are problem punters, drinkers, shoppers, drivers, footy followers, credit card holders and public servants. We all know that in every possible group or segment of the adult population, a very small proportion will exhibit unfortunate behaviour. Anthropologists study this, but can’t define why 98% remain on the straight and narrow while roughly 2% have an addiction problem.

The Clubs’ argument is that MPC fails to address the issue, because the forced scheme as it stands will apply to 100% of gaming players, including those who like to have a little enjoyment from time to time without a skerrick of evidence of addiction. There is some logic to this, I must admit.

Why would you create a system to target gaming players who fund community clubs, yet at the same time ignore out of control racing punters or those stay at home introverted types maxing out the credit card with on-line gambling? Obviously Senator Wilkie does not understand the club industry, but you wouldn’t expect him to – after all, he’s from Tasmania.

Larry uses the example of a casual gaming machine player who’ll say that his limit is $5,000. But who’s to know if this level is affordable or not? The limit is unrestricted and may be set well above their own reasonable threshold. Is this an effective remedy? It doesn’t appear so.

But the biggest casualty will be the $20 player representing the largest customer segment. Typically, they set themselves a budget – yet research indicates that they will stop playing, baulked by the MPC paperwork. It’s the scenario of reduced visits that will impact gaming revenue so dramatically, some estimate by as much as 40%, according to modelling by Clubs NSW. This is where it gets spooky.

Even if the reduction is 30% or 25% from the soft trading conditions we’re experiencing now, what will the multiplier effect be upon staff rosters, produce and cleaning suppliers, local media and all other suppliers facing corresponding reductions? I indicated the possibility of serious job losses, but Larry believes its worse. His calculations are that Port City and every other club in regional NSW will close down. So much for the expansion plans.

Another issue not discussed with Larry but nonetheless relevant is where will the hundreds of millions of required funding for the MPC smart card infrastructure come from? “Oh,” says Senator Wilkie, “industry will pay for that.”

Your humble writer normally avoids political discussions but the line must be drawn on this subject, because it seems to have been designed to appease the media rather than to genuinely assist those who deserve help: the addicts of which Panthers boss, Russell Cooper, says there are 190 in Port Macquarie.

Looking around the venues, I tried to find a typical low income punter who looks like he might blow $500 every week on the pokies. I looked around at 10 in the morning, mid afternoon and in the evening, but what did I find? Appearances can be deceptive, but the most common profile of a player was a man in mid 60s with ¼ cup of $1 coins and credit of $18 on the screen. Myth or fact, there are a few unfortunates and there always will be, but these are outnumbered with a vast army of casuals I suspect hoping to win enough to buy the wife dinner. If the research is right and they stop having a flutter, who will the losers be?

The surf clubs are worried, so too are the hockey clubs, netball, league, tennis, riding, senior citizens and Rotary, because as volunteer organisations, they are grateful for the funds received in the past..

But there is hope. Hope that Oakeshott and Windsor will reflect on the significant role that Clubs play, realise the folly of the changes and allow these community based organisations to get on with their work.

Thanks Larry, for your time.

Perhaps this is the key to their success. Read on as we talk to Mid North Coast Franchisee, Marilyn Brien about how progressive organisations are enjoying sustainable growth through their most valuable asset: their staff.

Hi Marilyn. What does your company Leadership Management Australia (LMA) do?

We work with organisations to increase their bottom line by developing the leadership, performance, and productivity of their key people. Through our unique development processes, we guarantee our clients: measurable results, identifiable return on investment, permanent behavioural change and consistent professional delivery nationally. We are a Registered Training Organisation (RTO).

What are the biggest benefits that businesses find?

The main benefits are improvement in leadership, productivity and communication, certainly in understanding the value of staff in recognising that they are your greatest asset, and that’s what we are about: creating exceptional results through people.

Tell us about what sort of benchmarking you do?

One component of our unique development process is that we create a ‘communication triangle’ to support each participant, comprising the LMA facilitator, an LMA coach and a manager or mentor from their organisation. At the first session, the person comes with their mentor and identifies key goals for themselves and how these goals will be measured.

For example, it might be where they are now, where they want to go and (most importantly) what actions do they apply to result in change. Therefore our program, which could be a 10-week or 12-month process, is very individualised.

So your clients need to think deep and hard about what they want to achieve?

That’s right. The first session is a 4-hour workshop to help clients think about the changes they want to make and why the changes are meaningful. For example, a supervisor may currently be holding two-hour staff meetings without goals or outcomes, so imagine if there are ten employees with a charge out rate of $50 per hour? Meeting time could be reduced by introducing an agenda, set time frames and action plans. So when you talk about return on investment, you can see how measureable outcomes can help measure improvements in productivity and performance.

At the beginning of our programs, there are ‘management tools’ that may identify communication gaps between the employee (participant) and their manager. The program encourages this communication gap to be filled, with a positive outcome for both parties.

But wouldn’t this be sorted out when a boss and employee have a performance review at the start of the year?

But not all organisations do that.

Is this the largest difference between small and large organisations – do the latter have more formalised practices?

Not necessarily. There are small organisations that do it very well and larger organisations where these things get lost in the system. We love to work with the owner of the organisation, because in identifying their areas of growth and development, they start to see the immediate and long term benefits of permanent behavioural change that we deliver through our learning process.

Is assessing the skills of the business owner part of what you do?

One of the earliest things we do is to understand the challenges, people goals e.g. improved communications or accountability. Having identified these, we ask who are the key people who will help you achieve these goals, and what are the areas of growth and development for them? For example, if Bill never get his reports in on time and he’s always running late, what does he need to do differently? And ask this of the business owner too.

This sounds like what you do might be similar to what a human resources department in a large company might do?

That’s right, and once the areas of individual development have been identified for key people, we need to ask what are the benefits for them as individuals? It might be less stress, greater satisfaction, or a better work life balance.

Similarly, the result of all of this might be that the boss can start to relax a little. I had a client who loved golf. He was able to find ½ a day per week to play golf through improved time management, as well as achieve a great networking opportunity for his business.

What types of companies do you work with?

Well, any size. For example, we have a national contract with Boral and also work with small companies with just a few employees. The size of the organisation is not important, because we work with individuals and it is their growth and development that is important to us.

On the Mid North Coast I work with medium to large organisations, e.g. local government, accountants, builders, plumbers, blue collar and white collar firms.

Many would argue that the only way to motivate employees is to pay them more. What would you say to that?

That’s an interesting question, because this trend has changed. The data from our most recent Leadership Employment and Direction (L.E.A.D.) Survey reveals that “Reasonable salary/pay” is the number one “most positive influence on performance in the workplace” (up from no. 4 in 2005).

What follows that?

The next four in order are job security (came up the scale after the GFC), interesting and challenging work, being entrusted with responsibility / independence and number 5 flexible work arrangement / hours / family / friendly.

What is the value to a boss of understanding these key motivators?

The value is that it gives the boss the opportunity to understand the possible outcomes of change. A wise person once said to me that “People do not care how much you know until they know how much you care”. Some bosses are resistant to change and do not explore the opportunity that change may bring. I am not talking about change for change sake; I am talking about change that is measurable and brings a positive outcome for all concerned.

Many years ago we gained a large local client because they were tired of sending employees off to training courses and not really knowing what the outcome was. There was no feedback, no visible change in behaviour or attitude in the workplace. This is the exciting part; with our programs there will be permanent behavioural and attitude change. We constantly challenge our participants: “How will you measure that?”

Thank you Marilyn. It has been fascinating talking to you about how you work with your clients to improve productivity and performance.

I have been into the Southern Cross Media offices before, and this time the same impression I formed earlier is repeated. It seems busy or lively with a certain kind of vibe that’s both distinctively bouncy and bubbly. I remind myself that this is how a media office should be, so I should not be surprised.

But what’s noteworthy is the continual traffic around the reception area, as if there’s an expectation that a delicious morning tea will arrive at any moment. Sadly, I don’t get to find out, as this month’s guest arrives and we relocate to Mike’s office.

As the GM, Mike now looks after the local operations of Southern Cross Media, better known as 2MC / STAR FM and the suite of Ten television channels. But life wasn’t always this diverse, as a school leaver was to discover when starting his copywriting cadetship with 2AY Albury in the mid ‘80s.

“I wanted a career as an announcer and when I saw how much fun they had, I thought, ‘yes this is for me!’,” says Mike, remembering his first job producing commercials. Soon after, the Max Rowley Media Academy in Sydney beckoned, which was funded with an array of part-time jobs, including a stint spruiking the floor at DJs Parramatta. We all had one of these jobs as young adults, didn’t we?

Luckily, an opportunity opened up at 2DAY FM as an office boy, production assistant, but Doug Mulray was safe for the moment, as an offer arrived for a fill in announcer from a small family owned regional station with a call sign of 2MC. With a firm intention to give the job 12 – 18 months before returning to Sydney, the attraction for Port Macquarie was irresistible, and 20 years later that return move has been removed from the agenda.

The journey has been eventful, filled with challenges and excitement, including the launch of ROX FM, acquisition by DMG, rebranding to STAR FM, acquisition by Southern Cross Media and most recently, amalgamation with regional television broadcaster SC Ten. Now with a staff 20, there are three areas to manage, namely talent (being the on air presenters e.g. Strawny et al), admin and the sales executives.

After 25 years, the enthusiasm within Mike is both obvious and infectious. This derives from the ability of radio and television to inform, entertain and impact on lives of many; the ongoing coverage of the floods was a great example.

“We are fortunate that there is a huge level of expectation and trust, and our listeners and viewers certainly let us know if they’re not happy,” says Mike with a sober face.

But there is another dimension to the business that Mike enjoys, which is the relationships with advertising clients. I was expecting a bad news story here, given the alleged softness of the advertising demand, but, “No,” says Mike, “the market is neither good nor bad; it’s what you make of the opportunities that count.”

During our discussion, we compare the commercial broadcast offering 20 years ago,  being 2 AM radio stations and 2 television choices, to the current menu of six FM brands and eleven television brands. What else can we conclude, that we’re spoiled for choice?

But it’s more than that, because at least with radio, the early days were characterised with 100% local content attempting to cover all demographics, yet now 2MC and STAR FM have distinct target audiences, creating demand for both local and the top ranking syndicated programming. Chasing these audiences is competition from commercial and ABC radio brands.

As we know, television is in the midst of transformation, as the new digital channels are starting to line themselves up with specific audiences. The Southern Cross stable launched its youth brand 11 recently, and if you have teenagers at home, you’ll know all about it (if you don’t, please call me and you can borrow mine for a few weeks). The sporting enthusiasts are looked after on channel One.

It’s here that Mike provides a nice insight: radio listeners tend to be more station loyal, yet television viewers tend to be less station loyal but more program loyal. Therefore, we tune into our chosen shows, giving less consideration for the station they’re appearing on. SC Ten’s hit series Masterchef would be a good example of this, where thousands tune in just to watch that, although the OZ TAM audience figures point out that the 7PM Project appearing immediately before Masterchef is growing strongly.

Stepping back to analyse regional media, you can’t help but be impressed with the choice now offered, but we’ve only just started on the digital media journey. There are two immediate things to look out for. I suspect that if Foxtel buy Austar, there will be a push for greater household penetration, encouraged by lower subscriptions. Expect the percentage of homes with pay TV to double to 30% if the monthly price gets down to $50 per month. The other development will be television streaming through the internet, where you can update your Facebook page on your television and flick back to the Masterchef elimination instantly.

All this kind of talk is a little challenging for us radio and marketing types, so we decide to leave the conversation there, as it’s time for a coffee. Now, has that morning tea  arrived?

Thanks Mike, for being on the air with us today.

How did you get into gadgets and technology?

Originally, I was a science and maths teacher – and just loved it. After a while, I began teaching teachers about camcorders  while applying for a grant for a new science curriculum; so even back in the eighties I was quite good at explaining how simple gadgets worked. I followed this path for a while, then spent some time in retail helping Norman Ross about the time that VCRs were launched.

After that, I got into publishing magazines, which was not a good move, and about ten years ago David Koch called me and said, “Hey, we need someone on our show to explain new gadgets. We’ll call you the ‘gadget guy’, but wear something distinctive!” Hence the bright shirts!

I have this theory that there is a technology submarine trapping those over 50, while the younger ones sail away thriving and embracing tech changes …

I think you are right; the growth has been amazing, but Gen X and Y will have their work cut out for them, because the changes will only become more pronounced.

Would you agree that Gen X & Y have grown up with computers, but us poor Baby Boomers were born into a world of slide rulers and have had to somehow wade through the exponential growth?

If you look at the dominant technology in the Baby Boomer generation, it was television, which was iterative; whereas, for Gen X & Y, the dominant technology is computers, which are interactive. The internet is seen as a place you can go to like an enabler, where they choose between entertainment, work, social networking. Now over 80% don’t read newspapers, because they get the information from their computer or phone.

What is the implication for senior business owners / managers then, who want to keep working?

Australians are among the quickest adopters of innovation in the world and always have been, and as the internet will play an increasing role in business, so mature workers will need to keep an open mindset.

For example, the way regional businesses are using data on soil moisture or prices for the latest information is impressive. Secondly, mature age business people will need to improve their internet presence to maintain competitiveness.

You hear stories of workers and business people not being able to switch off, because they’re addicted to their smart phones and emails. Is it just a matter of personal discipline that we have trained bosses and clients to expect instant responses? 

The key thing is mobility. Work used to stay at work, but not anymore; we can choose to take it home with us. However, the progressive companies are introducing values that say when you come to work on Monday morning, I want you to be fresh after a break, instead of rundown.

How will the 2030 office function?

Better than it does now!

Are you a PC guy, Apple guy or too diplomatic to comment?

Good question, but I use both, because they both have a role. It’s the same with phones; I have the chance to review them all, find out their good points and their weaknesses.

Your favourite gadget at the moment?

Some of the new Android phones that are coming onto the market have amazing ways to make our lives easier – especially with the pay phone technology that lets you use your credit card via a phone interface. Shopping will never be easier!

There is a conspiracy theory that among consumers that electronics (including computer equipment and peripherals) is produced by the same factory. Is this true?

No, it’s not true. Well … mostly not true! The facts are that 95% of consumer electronics are produced by a handful of huge factories in China and Korea, because most of the parts are standard equipment.

Take televisions, for example. The frame, the circuitry and the switches are standard items, but the remaining 5% is where the Intellectual Property kicks in. Each gadget generally has something unique about it that gives it some unique features e.g. not many know that some of the better known brands have a black box protecting the unique technology. If the box is tampered with, it self destructs!

What’s the best way to learn about the suitability of new equipment for business, so that we’re not confused and disappointed when we buy it?

It’s natural that we’re cautious about buying new things, for fear of disappointment, but you can learn anything from the web – given a little time. Lately, there’s this term around called ‘the cloud’, which means many businesses are outsourcing their hardware and software needs to experts. When you want something, you just get online and download it.

Now in your business is there a need for you to store great amounts of data, when another company can do it for you, eliminating the need for you to invest in storage? Also, why would you buy softwar,e when you can rent it for a small cost?

I have two questions about the NBN. Firstly, is $43B too much?

That’s a political question I’m not going to answer, but let me respond by asking you this: did they do a cost benefit analysis when they built the Harbour Bridge? No, because it was needed, and only the government could build it. Same with the NBN. The benefits might be hard for some to see now, but after it’s completed, it will be hailed as a great investment.

Secondly, the take up rates for the premium packages in Tasmania are reported at just 3% of homes.

Even if that figure is right, don’t worry about that. Smaller towns are unlikely to be early adopters, because they may not have the need for as much content as internet users in regional towns and cities.

For those who did not attend your Chamber of Commerce presentation, what are the top 3 emerging trends that will drive medium and small size business in the future?

The usage of tablets will skyrocket, driven by their use as a presentation, entertainment, computing or portable device. There will be a bewildering array of applications for consumers to use that will open up advertising and promotional opportunities. Secondly, as I mentioned before, cloud computing, where we’ll use virtual storage and programs.

The final and most significant trend is that businesses are starting to take the internet seriously, as they realise that customers won’t necessarily walk in the door of a retail premises until they have compared products, service, pricing and range on line. The implication for many retailers is that when a shopper arrives you can assume they have done their research and they’re ready to buy.

Thank you Peter.

Why is economics interesting, and why is it important?

An understanding of economic forces will help astute business people be aware of the forces that may have an effect on their businesses. There are many aspects of this, and let me give you 3 examples. Number one is from a money making perspective. It’s good to know where the economy is heading and what types of industries are likely do well in the future.

Secondly, most firms will have some exposure to interest rates. So, if their customers have money in fixed term interest rates, then that could be attractive, but if you have large borrowings – it’s not so good. The third thing is the exchange rate, which has huge implications for firms either selling or buying internationally. For example, if you’re an exporter, you’d like a lower exchange rate, whereas importers like our current situation.

What does your job entail?

My job is really twofold. I have a desk in the NAB’s main (foreign exchange) dealing room in George St. I’m involved in interpreting economic events and trying to forecast the direction of the economy and what that means for the outlook for interest rates and exchange rates.

So that’s our key focus; trying to understand how the markets interact with the economy and help the dealers to understand what’s going on, so they can make money from trading in foreign exchange and securities.

When we think of deals AND markets, we normally think of equity or share markets, but this is different.

Exactly. But far more money is transacted around the world in interest rate markets and foreign exchange markets, and it’s these that the Australian banks operate in, whereas equities is much smaller.

What’s the other part of your job?

Apart from advising the dealers, I’m really a specialised sales person advising clients on the results of our analysis.

So who are we talking about?

I talk to people right across the entire spectrum. It might be traders from JP Morgan, who have hedge fund clients in America, large Australian companies, who have exposure to international markets like BHP. Do they want to be paid in US dollars, or what is the best currency for them to be paid in?

There are also property trusts and in the regions there are many manufacturers, property developers, local funds managers – even local builders or importers of building products, who might need some advice on whether they should fix their loans, for example.

This is fascinating. How’d you get into this?

I did a commerce degree with an economics major at Newcastle Uni and remember surfing around these parts as a young man. I had a cadetship with the Australian Bureau of Statistics in Canberra, and I stayed there for 15 years working on policy for a range of different departments and had some interesting jobs. One of these was working in the Prime Minister’s department for Bob Hawke, which was exciting. Eventually, I decided to head back to Sydney, and I got an offer to set up an economics department in a small bank. Then in 2001, I joined NAB.

Have you been working in the same area?

No. I was working in our corporate and institutional area, providing analysis to our very large customers in corporate lending. Then this job came up in the NAB trading room.

Now that was great news; I always found markets very interesting, because it’s where all of the views in the world come together and the issues get sorted out one way or another.

Is that what Gordon Gecko was talking about when he said ‘money talks’?

Maybe, but that might put too much emphasis on the word money. Let me give you an example with the oil price at the moment, which has elevated from $70 or $80 a barrel to $100 a barrel before the crisis in Asia erupted. That’s the world saying that there is risk to the oil supply.

So when we talk about these prices, we’re talking about futures prices, so the market has built in a margin of risk. My job is to work out what the market is telling us about the thinking behind things; is it temporary or long term?

It seems that every week this year there have been issues that have impacted the markets, with the Queensland floods, Egypt, the Japanese disaster and now Libya.

Does it come back to a confidence thing?

Sometimes it can be, but with the oil example, it’s more to do with a collective perception about supply and demand. The yen is fascinating too, because normally after a disaster, the currency drops, because people think they’ll be producing less … but just now, the yen went up.

Why did that happen?

Japan is a net saver, and they lend money to the world. Now, people thought they have to sell their investments to pay for their reconstruction, and to do that they’ll need yen. Now, many markets sold assets for yen, which increased demand, and its value went up – which is not really what they wanted.

In your analysis of markets, it’s not like the rules of play are known and predictable.

Absolutely. We are surprised all the time and we keep learning. However, the basic tools of economics provide a good way of understanding what’s happening. For example, supply and demand, the impact of changing interest rates, fiscal policy … these sorts of things have a real impact. It always surprises me how often some commentators get it wrong and predict that it won’t work.

Can we talk about the so called 2 speed economy? We understand the concept, but I think we struggle with how the economic benefits fall through to regional Australia?

It’s too simplistic to call it a 2 speed economy. We call it a multi speed economy. Our NAB business survey covers indicators of future output in 5 major industry groups. Firstly, mining has dropped off because of the Queensland floods, but that will come back strongly. Then finance, property and business services are strong, because deals are being done and companies are investing in the future. Personal and recreational services includes education, tourism, health. This area is doing well, and so is manufacturing. The area that’s suffering is retail.

What’s your take on this?

Retail is soft and has been for a few months. We think it has to do with the household saving ratio, which is a measure of what households are not spending. Now we haven’t seen it this high since the ‘80s. We think many families got a big fright during the GFC and they realised their debt is too high, so they think it’s time to pay off their credit cards and mortgages, so they have less money to spend. The other thing is that house prices are now flat or falling, which creates a more cautious atmosphere.

Why has demand for residential property levelled off, is it just interest rates?

Yes, I think it’s that, but also households don’t want to accumulate more debt. Don’t forget, with all this bad news, that sits in people’s minds. Housing is also very unaffordable in Australia, because we haven’t kept up the supply.

We’ve heard stories about the relative high value of residential properties. What is the NAB position on a possible correction here?

We think it’s very unlikely, because the underlying strong population growth should continue driving demand and on supply side with the high Council charges, developers are finding their margins are squeezed, and they are better off with their money in term deposits – so they are not building as much. There is a structural issue here that won’t go away in the short term, and the RBA will keep the lid on house prices, with more interest rate increases during the year.

Is it true that banks are being conservative in their business lending at the moment?

I don’t think so. During the GFC, we met our budgets and we are open for business. But I know that credit growth is slow in Australia, so there might be less business chasing money. The area where finance is tight is in property development, which is mostly funded from overseas.

What about a career in economics for any Year 11 or 12 students?

My advice is to do an economics degree and get a job with any of the government departments, because they will give you fantastic training that’s about the best in the world.

Thanks Rob, for visiting the Port Macquarie economy.

If you’re over 40, you’ll remember 1991 when interest rates hit 18%, causing property prices to slump and along with it retail spending. So what’s different about the present situation, and what are the implications for retailers?

Who better to reflect on these questions than a stalwart of the grocery industry, nearly a decade of these as the CEO of Woolworths: Roger Corbet AO. Roger retired a few years ago, but now enjoys several high profile directorships – including Fairfax and the Reserve Bank of Australia. Therefore, he is well qualified to comment on retail issues. I caught up with Roger at a Marketing Institute function recently, where he was speaking on the future of retail.

Economists have been waxing lyrical about the so called consumer spending strike lately, so I couldn’t wait to hear a retailer’s perspective, as I imagined it would be like a dreary farmer who’s never happy – bleating about how unfair the world is. Then he drives off in his new Mercedes.

The perfect storm responsible for consumers zipping up their wallets and purses is due to several factors. In the last 12 months, wages have increased by 3% to 4%; however, household costs have increased more, thanks to higher interest rates and water and electricity and food prices having effectively reduced our disposable income. Then add the bad news surrounding the carbon tax and flat or slightly declining property prices, and you have a well documented record low consumer confidence – and it’s here that Roger makes a good point.

“The Australian shopper has a fragile yet well developed sense of knowing when there is a good time to spend and when not to. As a retailer I hate elections, because they stop spending then, as it seems that right now they have shifted into conservative mode.”

Clearly the most high profile threat is the internet, and Rob acknowledges that online retailing is taking away sales in some areas, but overall “the sooner retailers wake up to the internet, the better. It’s not a fad that will disappear soon. It’s here to stay, and it will change ways we buy goods and services more than we can ever imagine – but there is no denying it,” he says with blunt accuracy. But he quickly adds, “Retailers can and should use it to their advantage, to reinforce their brand message, reach new customers, provide extra services and even reduce their purchasing costs.”

In the emotion of the moment, some retailers claim that the ‘net is taking all the sales, but this can’t be taken seriously. Respected business analyist BIS Shrapnel estimates that online sales account for between 4 – 6% of the entire sector, and Corbett agrees that retail bricks and mortar will be around for a long time, because as consumers we like to see, feel, touch and evaluate merchandise before we buy it. Retail these days is actually a form of recreation; who of us hasn’t indulged in an afternoon of shopping with a coffee break in the middle? Can the internet replace the experience of shopping?

While this is true, but having selected an item, what’s to stop us searching the net for the best price and buying it there? Not much, except in cases where some after sales service is needed; now, doesn’t this apply to many products? Again, common sense argues that smart retailers should have the sales skills to close the deal while the customer is in the store.

Aside from the internet and economic factors, Rob believes that the biggest challenges retailers face are of their own making. When you look around at retailers, so many of them are running their stores the same way they did 15 or 20 years ago. When there is no service or experience, it’s little wonder they have to compete on price. But price is the worst thing you want to rely on, because the big guys can always buy cheaper than you.

After reflecting on retail history, it’s clear that no competitive threat is insurmountable, and the implication is that retailers need to differentiate their brands. Rob agrees and adds that it’s the only way for smaller retailers to survive, with the implication that the difference must be demonstrable or obvious. If the difference is too subtle, then it will be overlooked. An example Roger loves to give was Big W in the mid ‘80s, that had not made a profit in 25 years and had been languishing well behind KMart and Target. One of the key issues identified was that the Big W brand did not stand for anything. A solution was found in the idea of ‘Big brands at low prices’. But still, the idea did not gain traction until after extensive negotiations resulted in Revlon setting up cosmetic counters in all Big W stores, which gave the brand positioning promise and put the chain on the road to growth.

A more recent example is the change by NAB realising that consumers lumped all the banks together in a group. Desperate to differentiate their brand, NAB launched an advertising campaign where they ‘broke up’ with the other 3 banks. The response to this has been encouraging in gaining market share.

The classic case study that any business person would love to have on their resume must be Woolworths, which in the late ‘80s was a distant second to Coles and not much ahead of Franklins. The turnaround came about largely because of two main strategies.

Firstly, management knew they had to control costs of the system, by finding supply chain savings, reduced property costs, better supplier negotiations – and that’s where they started. Within 2 years a competitive cost base was achieved, and Woolworths was ready for the second strategy: a compelling new brand positioning.

I can’t comment on Woolworths’ efforts to reduce their operating costs, but every marketer applauds ‘The Fresh Food People’ brand positioning launched by Leo Burnett in 1992 as setting the benchmark. It ticks all the boxes, being clear, simple and meeting an obvious need. But to Roger and the team, the new slogan was more than advertising; it meant a change in the Woolworths value system.

“We were blasting our Fresh Food message out everywhere, but we still had a hell of a job to teach our staff how to deliver the promise in purchasing and in the produce section of the stores, because it would take only one rotten peach and we would have broken our promise,” says Roger, concluding that the task of changing the staff culture took much more effort than they originally planned.

It’s always easy to look back on success stories but turning to the future, what will next year bring? Roger’s response is quite simple: “There are two drivers in the economy: one is consumer demand to purchase goods and services; and for businesses to make investment decisions. The government’s stimulus packages have created demand in both areas, but they are now running out. And if they’re not replaced with demand from both areas, then the economy might remain quiet.”

You’ve just been appointed CE Mid North Coast Local Health Network. What were you doing in previous lives?

My two most recent roles were at the North Coast Area Health Service, where I was Executive Director Corporate Services (finance, IT, purchasing, capital works, payroll) and more recently ED Clinical Operations, which means that I’ve been overseeing the management of hospitals and Health Services from Laurieton to Tweed Heads.

You know your way around a hospital?

Yes, I do. But I’m actually looking forward to learning more about the areas I don’t fully understand, because health is such a complex area, that we never stop learning. We are very fortunate to have so many people who have trained very hard to be clinicians, nurses, in allied health or the many other areas providing or supporting health.

Our industry is changing all the time; the diagnostics and technology are changing. The environment here is changing so much that we need to take appropriate opportunities as they arise.

Our workforce is also changing. As we learn more through the various clinical colleges and accreditation bodies, research, our clinical pathways, the services we provide to our patients are also changing, and with investment in technology, it’s likely that change is occurring more rapidly than in other industries. It’s great to be part of this.

What do you see as the most challenging issues in the next 12 – 18 months?

The most immediate challenge that as a new entity, the Local Health Network, we need to get established and start operating as a fully functioning independent organisation. Now that we are a separate entity from the North Coast Area Health Service, we will be working out how to best to deliver local services within our footprint.

The second part is to work with our newly appointed Governing Council, who are a well balanced and enthusiastic group of locals from around here. We’ll need to work out our strategic priorities, governance structure, capital priorities for the Mid North Coast and how they wish to operate.

Our third priority will be to get the Local Health Network ready for the changes in funding and quality standards that will come over the next two years to meet the National Health Reform program. The National Health framework has some new approaches to funding based on a case mix formula, where like hospitals will receive a set price for how much they treat their patients – called the efficient price.

So hospitals have to get ready for the efficient price and be prepared to operate within that price. It’s important to know that this won’t affect the smaller hospitals like Macksville, Bellingen or Wauchope.

The objective is that we need to be accountable and efficient for our resources. The other part to this is that there will be a new National Performance and Quality Framework providing Local Health Networks, Australia-wide, targets to achieve aimed at providing consistent standards.

We already measure efficiency and quality, but it will be interesting to see the National Standards – and I’ll be accountable to my Governing Council to achieve these, although we have already started.

Apart from efficiency, how will the quality of patient care be maintained?

I think it is important that both efficiency and patient care are taken into consideration, and in the last five years we have greatly enhanced our collection of information, which has improved our understanding of a vast array of quality measures.

We have continually developed new systems, which allows us to assess the quality of patient care being provided, and we use this to learn more about our services. Under the National Health Reforms, it is expected these will continue to improve.

If the trend continues a high proportion will be seniors who’ll require medical services,  how do you go about planning for that?

One area of priority will be the management of patients who present to our Health Services suffering from a range of illnesses; for example, a patient may present to an Emergency Department requiring attention for one condition, but they may also suffer from other pre-existing conditions, which makes their care more complex.

This trend is more evident in patients over the age of 65, which is the one age group from    2006 – 16 is expected to grow by about 42% across the Mid North Coast.

The other challenge is the area of diagnostics, where we need to make better use of technologies as they develop in areas like radiology, pathology and radiotherapy.

On the Mid North Coast, we are fortunate in having two very good major referral hospitals in Coffs Harbour and Port Macquarie.

Over the last 5 to 10 years, they have been extensively developed. This includes increased levels of surgery, radiation therapy, cardiac catheter services (at Coffs), an expanded range of Mental Health services, and the list goes on. Another challenge will be to see how they can evolve as more dynamic and sophisticated regional centres.

How will you improve the delivery of health services?

Part of my role will be to continue to listen to clinicians, staff and key local stakeholders and determine how we want to keep advancing services within our budget. Through our Clinical Services Planning, we hope to articulate the needs of our growing population, and I’ve commenced working with our Community Participation Unit to ensure this Plan’s content is broadly canvassed throughout the LHN and community.

It sounds like the Local Health Network will self manage its priorities?

We determine our strategic direction in accordance with the clinical needs of our local communities, in conjunction with NSW Health.

The other area that will be exciting is teaching and research. Our two major hospitals have great medical training schools. It’s early days for both, and I see these as being helpful to promote our area to doctors who may want to come back and work here – but not just the major cities, but hopefully the smaller towns too. Plus, we need to look at how we can expand our training into Allied Health and build on the Nursing training that’s already happening here. I don’t think anyone can underestimate the value that local training can bring to our communities. We have a great range of clinicians who are very keen to assist with training, which is great.

What can the community expect in the delivery of health services going forward?

One of the main reasons for the Local Health Network change was to bring about greater involvement with the community and health related stakeholders. In other words, asking the local experts how we can do things better; for example, sharing information.

Other areas which are anticipated should improve include quality and clinical service delivery, especially surgery and emergency department waiting times.

It is also anticipated that there will be improved integration of community health services with the establishment of Medicare Locals.

I am really keen for our LHN to work together to be one of the better performing Local Health Networks, not just in NSW, but Australia and be a learning organisation.

With this full agenda, Stewart will you have time to continue your community involvement?

I’m sure I’ll be busy with a much heavier commitment to the LHN; but equally, since I’ve been on the Mid North Coast, I’ve been actively involved in a range of sporting and other community activities. I think it’s important to continue with these linkages in the future.

Thank you Stewart.

One morning not so long ago I was surprised to look up from my desk and see the Worldwide President of Kraft Foods introducing himself which was strange because everyone knew who he was. He said that he had stopped by to have a chat because our cheese business was hurting. He looked at me and I replied “that’s true, milk costs are up 20% and selling prices and volume are down 10%”.  The President replied “tough situation, what are you doing about it”? For which I reiterated our game plan, hoping to draw some praise. “Yes, heard all that before, but you haven’t mentioned innovation yet”? This was true. He made me realise that we were so focussed defending our position that we’d overlooked the opportunities to change the rules of the game. As Peter Drucker aptly said “you can’t move forward by looking in the rear view mirror”. From that day on, one of the attributes I looked for in marketers is their willingness to assess the opportunities for growth, understand the risks and boldly step forward for which innovation is often the key.

You might say that innovation belongs firmly with the larger companies who can afford to take risks. But isn’t refusing to change the biggest risk of all?

In this context, McDonald’s is a brand I’ve admired since I won a World Series Cricket poster in 1979 by fronting up to the counter and blurting out “Toallbeefpattiesspecialsaucelettucecheesepicklesonionsonasesameseedbun”. Soon after I cracked a beaut job on the Maccas account at their ad agency and simply loved every day at work for the next 5 years. Not sure how or why, but I admit that I was hooked on the infectious enthusiasm, the cleverness, the vibe and the culture of my client, some things can’t be easily explained.

Now just a few years later, (cough) I was curious to find out what’s it’s like today and it was with great anticipation that I met with our local licensee Jacqui Jones and husband Brett. At the Settlement City store waiting for a brief moment before Jacqui and Brett arrive, I’m struck by the vastness of offerings that includes, chicken, burgers, wraps, sundaes, shakes, fries, I Spy game, coffee and that’s without McCafe. Whatever happened to Ray Krok’s original menu of burgers, shakes and fries? It dawned on me that this is a really complex business and I made a mental note to add a few extra questions to my list.

Jacqui is a Maccas careerist, joining the ranks fresh from school and within a year or two knew that she wanted to progress to management. Ambition is a wonderful attribute but clearly in Jacqui’s case it’s matched with talent as training and hard work began to pay off. By the early 90’s  promotions to came frequently, notably as Store Manager and then Supervisor of 4 stores paving the way for Jacqui’s appointment as Licensee of the Dalby store in western Queensland in 2000. Brett’s background is similar progressing through the crew and management ranks assisted with just a little ketchup in his veins too. In 2008, the opportunity arose to relocate here to become multi-store owners and their feet have not touched the ground since.

As successful managers the progression to become a franchisee is logical but what was the attraction for Jacqui?

Several areas come to the fore lead by opportunity to have a meaningful say in every aspect of the business from recruiting and training, operational management, marketing and menu development.

In retail the delivery of the brand promise is often the most critical element of the marketing mix and a function of the attitude and competence of staff. Council have recognised this with their innovative Care program but even the big guys can get it wrong sometimes. For example we know that Bunnings have the widest product range yet this strength is undermined by poor service. At Maccas the delivery of the brand experience (quality, service, cleanliness and value) also lies in the hands of management and frontline crew. Perhaps  this is why at every Jacqui stresses the fundamental importance in training, development and coaching of the 250 crew, 50 baristas and 35 management. As a registered training organisation, nationally accredited training includes traineeships through to Advanced Diplomas increasingly delivered online.

Reward systems are in place to incentivise management to grow into better decision makers and I’m impressed that 3 managers have just returned from a conference in Singapore where their achievements were recognised. Rarely to we find business owners travelling overseas for conferences, let alone their management.

Clearly the emphasis on training and development is a two way street, providing licensees with a more productive workforce while at the same time giving employees growth opportunities. But what evidence is there that it works? 

Jacqui indicates that McDonald’s Australia  has high staff retention rates where 80% of store management have come through the ranks including CEO, Catriona Noble. I’m sure that there are many business owners that would love to have that type of succession planning in place.

Consider that by investing in their staff at a local level, McDonald’s have a sound basis for innovation because the fundamentals are there. An ever changing menu, new store locations and decore (Settlement City is about to be given a complete makeover) ensure that the customer experiences move with the times. Credit to Maccas for that.

So far our discussion has focussed on what happens inside the store but if it’s not supported with customer focus the wheels can come off, though I suspect with either Jacqui or Brett this would be a rare event. I was interested to know what feedback and monitoring systems exist, especially on product quality and service.

Clearly food is a high involvement category and I suspect hard to get right all the time. While Jacqui and Brett reinforce standards, they are assisted regularly by McDonalds Consultants. I was impressed to learn that customer surveys are used to measure Quality service and Cleanliness perceptions with the results fed back to management and crew.

Content with the ability to satisfy customers, the store is primed for marketing (note the priority here) which is a shared function between head office (advertising) and Brett who runs the local store marketing. Maccas weren’t the first to recognise that multiple audiences can be successfully targeted but they are perhaps the leading exponent. Local store marketing remains a high priority and around  Port Macquarie you don’t have to look too hard to see our hockey, nippers, league and little aths teams have been assisted with community funding that is underpinned by an ongoing  commitment to give back.

I would argue that here you have a business that will enjoy strong growth because the critical elements are beautifully designed and calibrated to perform. While Jacqui and Brett participate in head office functions such as branding, logistics, new products and store imagery, their success reflects dedication to leading and inspiring their team. Throughout our discussion and reflection its clear to me that the value system of relentless learning and improvement that I discovered in the eighties remains as strong as ever. It’s effective, invigorating and will serve the brand well for the next 40 years.

Thanks Jacqui and Brett for your time.

What do you do at Port Macquarie-Hastings Council?

I’m employed by Council to do all that I can to present a strong business case to the Federal Government and to entice universities to make a bid for infrastructure, so that we have a wider range of university courses in the region.

Why does Council believe that this is a worthwhile venture?

Increasing the number of university courses locally is very important. This region needs a labour force that can meet the professional skill shortages that currently exist. Increasing the number of bachelor qualified residents will not only improve our labour force, it will increase the potential of households to earn greater levels of income, it will increase the intellectual and human capital in the region, it will increase the likelihood of businesses to grow and will achieve many economic and social outcomes. This has been proven many times over.

Talking about qualifications, what are yours, and what was involved?

It’s a PhD in Strategic Management. To do this I had to firstly present a proposal to the University Research Committee to demonstrate that I had a set of researchable questions and that these would provide new knowledge in strategic management. This was the first main hurdle and once this was achieved, the second task was to collect data, analyse the data and write a thesis reporting the results of the research.

You have just made it sound very easy. How did you go about identifying and isolating your specific topic?

No, it wasn’t as simple as it sounds. However, I believe you can only take something like this on if you’re researching something that you have an immense interest in. I was interested in strategic planning and managerial actions. This topic was chosen purely as a result of my interest.

What were the prerequisites?

To enrol in a PhD, you need to have a Masters degree in research or an Honours degree in research, which I completed in 2003.

You clearly had an interest in business planning and outcomes too, so what came first?

It was probably a combination of both. Having spent time in the automotive industry as well as the vocational and higher education sectors before I joined Council, I was intrigued by watching managers writing strategic plans and then grappling to write annual reports summarising their actions. The value of planning has been widely questioned in some of the great books on the topic, such as Henry Mintzberg’s The Rise and Fall of Strategic Planning, so I was looking for the connection between planning and actions.

What was the topic of your thesis?

I analysed the relationship between what managers do and what they plan to do. I had to develop a diagnostic tool that uncovered new information by asking questions that had not been asked before.

How widely did you plan to cover these topics in your PhD?

Because the PhD is so exhaustive and you can’t leave any stone unturned, I had to make a decision whether to concentrate on one industry sector or to concentrate on a range of industries, but make sure that the content was narrow and deep. It was the second option that I chose. I collected data from every industry sector in organisations all over Australia ranging in size from 5 employees to 20,000 employees.

Now this is getting interesting. What did you find, and what did the study bring to the table?

I began by asking managers: “What were the significant actions that occurred in your organisations in the last 12 months?” which is the reverse of the normal routine of: “What did you plan for and what did you actually do”? I found that many actions that had a positive impact on performance were either not planned or were very different from what was planned.

Very clever. Why did you approach it like this?

Purely because everyone has a mindset of reporting against the plan, and I wanted to get away from that and the best way to assess the relationship was to ask what they did first. I found that over 30% of these major actions were unplanned.

So how can an organisation take planning seriously? And to what extent can you plan to be flexible? How can you plan for events that you can’t anticipate?

Exactly, how can you plan for events you can’t predict? Should organisations leave space then?

That’s precisely what I’m saying – don’t overdue your plans, don’t overcook it. Organisations more than ever need to build in the ability to adapt and change where necessary.

What else did you find?

I found that the top performing organisations were those with good planning systems but were flexible enough to change when needed. (These tended to be larger organisations, which was surprising).

Organisations that had specific strategic plans with little or no flexibility did not perform as well. The poorest performers were those with no plans at all; they were purely reactive and tended to be smaller companies. Therefore, I’m not saying throw out the plan – rather, ensure your planning makes accommodations for change.

Does this support the raison d’être of strategic planning?

Yes and no. It supports the need for good planning, but it’s important that the plans have adequate scope for opportunities to be seized. Planning needs to be iterative; it’s an ongoing process, and they need to be designed so that they can be changed accordingly.

What would you say to businesses around here about the value of strategic planning?

With so many small businesses in this region, my message is don’t neglect the value of planning. Although small business owners wear many hats, they need to take time out to work on their plans to understand changes in their own environment and to work out how they should react. Owners and managers tend to work on what’s urgent, rather than what is important, and planning is one of the most important activities they can do.

It’s been a 7-year journey for you. How did you do it? 

It took me 7 years because I worked full-time the whole way through. I wrote my thesis (90,000 words) on week nights and Saturdays. I am very fortunate to have an incredibly supportive wife and kids, otherwise I couldn’t have done the 15 – 20 hours of study each week. I also had a fascination for the topic, so that certainly made it easier.

Thanks Wayne, for sharing your insights with us.

Myth # 1: Mass media and mass marketing belong to the past. Rapp said, “They are not dead, they are just graduating to the web. One-to-one-to-everyone.” Myth # 2: The Consumer is now king and queen. Rapp noted that while the consumer is more empowered these days, it is not all sunshine and rainbows for them. “The average consumer has a hard time. They are still taking a beating.” Myth # 3: There is no such thing as a free lunch. Google and Apple prove this theory wrong. In providing free products, they build a loyal consumer base. There is “lots more than a free lunch,” Rapp said. Myth # 4: Multi channel interactive marketing is the future of marketing. Stan sees iDirect (a merging of digital technology and direct marketing practices) playing out this role. Myth # 5: Seeing is believing. The mysterious Myth # 6 evolved around the 80 / 20 notion: that marketers must concentrate on their loyal 20%, and leave the other 80% to their rogue consumer wanderings. Rapp noted that this myth is entirely outmoded, as it is now affordable and much more possible to chase the 80% thanks to social media. “We don’t know how the new technology will play out, but it will change everything,” he said.

Contrary to popular belief, Council’s Urban Growth Management Strategy makes compelling reading, especially when it comes to where our future population will live. Apart from Area 14 (Rainbow Beach), and Innes Peninsula (Innes Lake, Brierley Hill, Oxley Park etc.) our town will continue to exceed the state growth. Within the LGA, Council predicts that Port Macquarie will continue to account for 70% of new dwellings, requiring 451 new lots per year. In the last 3 years, new dwelling approvals have averaged just 290 lots per year. So are there good times ahead for the building industry?

The answer to that rests largely with Council’s willingness to assist developers who want to meet the demand.

The development industry has a scathing view of Council’s Planning department, so let’s hope that a dose of business acumen arrives, and quickly.

Not doing so well, though, are our friends in retail, judging by the easy parking in town these days. According to a former Macquarie Bank executive, Bill Moss, things are grim and about to get worse. Bill said that the aftermath of the GFC and changing buying channels will hit retail profits for a decade. The population is ageing, the internet is stealing retail sales and much retail property is still overvalued.

The ABS stats support this figure, with retail sales increasing just 0.7% for the year recently ended, reflecting ongoing discounting.

I have enjoyed reading in the press about Coles’ success in teaming up with Masterchef, because it demonstrates the value of product placement in programming. According to industry sources, Coles saw sales of products featured on the show grow by an average of 13%, not to mention the increased perception that Coles is a fast food destination.

Product placement can be achieved at a local level too; think about locally produced editorial, and there is your opportunity. I don’t think you need deep pockets, just some imagination.

As I’ve said before, the television sales guys are a cut above the other advertising reps (with the exclusion of Port News’ Cathy Walsh), so it’s sad to see SCTen stalwart Steve Creigh hang up the boots. No doubt he’ll be kicking lots of goals at his new gig for Prime in Tamworth. Thanks for the impeccable service over the years, Steve.

One of my favourite media personalities these days is Top Gear presenter Jeremy Clarkson, for his uncanny ability to add new meaning to the humble insult.

I think even he would be happy with this one, “No hopers in the business community serve an important function. They make the rest of us look really proficient, and for this we should be grateful”.

Our 2 contenders will be saying, “As a brand, here’s what I stand for”. But being politicians, they will never master brevity, so let me have a go. The incumbent has a reputation as a nice guy, but the perception is that with no new hospital funding, results have been patchy.
Alternatively few voters know David Gillespie, but he has the advantage of a huge audience yearning for the good old days of conservative representation. David’s problem,however, is the Nationals brand: it’s as trendy as Reebok or Reschs, appealing to no one under 50. Put him in a Liberal’s jersey and he’d romp it in; but this is not to be – at least for this election.

As business owners and managers, we have the opportunity to asses both candidates on their business policies. My analysis of their sites puts Oakeshott ahead with his call for a major rethink on industrial relations. Rob cites two examples where the current system needs to be changed – firstly to do with simplifying the award process, giving the recent three-hour minimum award for school-age children as a prime example. “This needs to change back to two hours and was a wrong ruling from Fair Work Australia, and it will only be changed via legislation,” Rob’s site says.

Secondly, there are on-going concerns in the restaurant and hospitality sector which are a continuing problem for seasonal tourism communities such as the Mid-North Coast.

“There are aspects of the new award that may just lead to more restaurants closing on public holidays in quieter periods due to the new public holiday loadings required, when the main use by the general community of a restaurant and café is on these same public holidays,” the site says.

An analysis of www.davidgillespie.com.au however, reveals little business policy detail. But there are still 4 weeks before the election, so further detail may be provided.

On this basis, you could be tempted to favour Oakeshott; however, if business experience counts (and it must), let’s not forget that Gillespie established and ran a medical consulting practice for 10 years. Consider also the opportunity that David could have as a member of government to influence policy and funding, and David Gillespie comes out the best choice for business. However, after a late start, it’s to be seen if he can overcome the handicap of the Nationals’ brand image on August 21.

Free-to-air television’s share of total viewing has hit a four-year high this winter, while pay TV has suffered its worst June share since 2007, monthly ratings analysis shows.

The success of the new free-to-air digital multi-channels and blockbuster must-see programming has contributed to growth for free-to-air television so far this year.

Meanwhile, pay TV’s share has decreased as free-to-air continues to draw viewers to its primary and multi-channel offerings. Analysis of OzTAM ratings figures for the 2010 year-to-date reveals strong and steady growth for free-to-air television, which hit its best share figures in four years with a massive 76.9 per cent of all-day television viewing (6am to midnight) and an 83.6 per cent share of prime-time viewing (6pm to midnight) in June.

Meanwhile, pay TV continues a negative growth trend, beginning the year with a 25.1 per cent share of all-day viewing in January 2010 and sliding to its lowest June share in four years, at 20.7 per cent.

Clearly, some of the Co-op business units are facing the clear and present danger of unprecedented competition, requiring a revision to the strategic plan to protect jobs. In the context of consolidating retail competition, is there a role for a member based organisation and strong dairy brand?

I think so, but the time to act is now. Secondly, we must engage with our members and the wider community by improving communication. Thirdly, I will call for an immediate independent audit to establish the true financial position before moving forward.

Most boards benefit from an infusion of new talent every year or so, but the current board remains largely unchanged, seemingly insulated from nor accountable to the members they were elected to serve.

If you are a Hastings Co-Op member wanting a more vibrant future, vote for Mark Livermore and myself. I am happy to take on board your thoughts: paul@adamsmktg.com.au

One of the business highlights of Sept for me was to spend a little time with John McGrath, who has selected the bros Bates to run our newest RE agency. I asked John for his views on Port Macquarie property, to which he replied, “When you look at the location, services and lifestyle, values will only go up, because property here is undervalued.” John also gave his guests an insight into his incredible growth when he said that RE is not about property or sales; it’s really about people and their motivations to sell or buy.

Congratulations to the winners of the business awards, especially the families and connections of businesses who voted. When it comes to accolades, it’s the customers who are best placed to determine winners, and here’s hoping next year will see the awards return as more than a popularity quest.

We’re buying a new car at the moment, which has brought home a few truths about advertising. For the first time in a few years I picked up the car section of the Sydney Morning Herald, which used to be the weight of 4 bricks … but not any more. Where have all the ads gone? The internet.

As we know, the feds have ignited the insulation industry with some massive subsidies, but now it looks like Harvey Norman has joined the queue, led by former Business Chamber boss Geoff Woodham. Speaking of HN, why it is so quiet in the electrical section? Is it that Jacob Levido has left for his European holiday or the departure of Glen Towle, now scribing for The Port Macquarie News?

Many businesses are horrified about the increase in electricity bills now that the invoices are coming through. The good news is that you can shop around, but in reality, don’t expect to retire on the savings. The facts are that Country Energy was successful in persuading the pricing authority to allow the big fee increases on the regulated tariff (i.e. the poles and wires distribution charges). If you move to another retailer such as Energy Australia you’ll save a bit on the retail proportion, but the remaining 95% will reflect the increased or ‘new’ prices as CE call them. Ultimately there is not much you can do about it except rejoice in the fact that there is 400 extra staff here than when NorthPower were around. The big question is, are you getting your share of their business?

Here’s an insight into the power of branding. At the McGrath soiree, I asked a business associate why he attended … after all, he did not seem particularly interested in property. Was it to get some tips about the markets? He replied that if the function was simply another new national franchise, he wouldn’t have bothered. But he was intrigued about the brand and wondered why it had grown.

The mobile phone seems to have a self proclaimed sense of urgency, allowing a caller to jump the queue whenever they choose. This sits at odds with me, because I regard my phone as a tool for me to speak to others when I want, not the reverse. Call it a form of narcissist time management, but it allows me generally get the things done in the order I want rather than have my days dictated to me by others.

Email was a time waster too, but not any longer, now I have turned off the chimes and those neat little screen alerts. Try turning these alerts off, and I guarantee within two months your computer productivity will improve by a marked degree, or I’m a monkey’s uncle.

Vicki Byram (Port Central) left abruptly early in the month, something to do with staff reductions. What’s happening to shopping centre wars? Being surpassed by club wars, that’s what. My money is on Port City Bowling Club now that astute Jordan Humphries has arrived from the Macquarie Hotel Group.

He’s had more jobs than hot dinners, so where is David Miedling off to now that he’s left the local Bank of Queensland, who are searching for a new franchisee.

Thanks to the kind supporters who voted for Adams Marketing in the Business Awards. After some thought I chose not to accept the nominations, as I’d rather spend the time working on our clients’ projects. Looking through the finalists, I note that many, if not most, have been there the last few years.

They have been awfully quiet at Sovereign Hills lately, so what’s going on? There is a new rumour every week, most of them unrepeatable here, yet after all the hoopla and hubris since 2006, the present silence is most out of character. The website is a treasure trove of clever images, inventive statements (my favourite is the self reference: “fully connected, knowledge-based ‘Fibre Town’”), and out of date milestones such as the display village, ‘due for commencement in the first half of 2009’. You never know … some of these might actually come to fruition one day. We called for an update, but at the time of going to press Robert Yendell had not returned our call.

Better get used to it; a 20 metre pylon sign, bearing those Golden Arches on Ocean Drive, is not far away. C’mon, get real … an arterial road without a fast food joint was never a long term proposition, but are you ready for the next Ocean Drive shock? How soon before a score of billboards appear? Inside 3 years, is the latest.

Brett Gilbert is back in business operating Gilberts Law from 66 Lord St. Now before you cynically say, “Not another lawyer”, think carefully about the value the profession adds … but don’t take too long, Christmas is not far away.

Did you hear about the lawyer fuming with impatience because the golf group ahead of him were ponderously slow?

After complaining to the club captain, he learns that the slow group are in fact blind. Unappeased, the lawyer tells the official, “That’s great they can play, but since time is money, why don’t you get them to play at night?”