Monthly Archives: September 2023

CBD’s transform as live, work and play districts

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Bricks and mortar retail is no longer the main reason to go into the CBD’s of Hastings, Havelock North and Napier.

The continued growth of online shopping is reshaping our CBD’s to be the heart of our cities as a broader mix of living, working and play areas. Councils and private developers such as Wallace Developments and entrepreneur Michael Whittaker have invested many millions to revitalise our CBD’s in recent years. Hastings District Council has recently completed a 10 year revitalisation plan for the Hastings CBD which culminated in spending $60 million redeveloping the historic Hawke’s Bay Opera House complex – now called Toitoi.

As well as an arts and culture hub it has attracted new hospitality offerings such as Craft & Social, Cellar 495 and Long Island Delicatessen, joining the other more established Fun Buns, the Common Room and Brave. Hastings’ first ever hotel, Quest, has also just opened.

The council has also revamped pocket parks and bought buildings to be replaced by lane ways, improving connectivity between Heretaunga Street and side roads. The investment has in turn attracted new businesses into the city such as Datacom, Fingermark, AskYourTeam, along with luring the region’s economic development support agencies such as Hawke’s Bay Chamber of Commerce and Export HB from Ahuriri, Napier.

The Tribune complex has also become a major feature of the CBD and other buildings that are being redeveloped include the former Breakers restaurant, now called H Central and the Westpac high-rise complex.

Council also went through a resource consent application to covert the old Farmers Transport building in Queen Street into apartments. In June and July there was a flurry of resource consent applications for Havelock North, perhaps to get in before the new development contribution rates come into effect.

A Quest hotel is proposed for Joll Road, a new commercial complex on Havelock Road and stage 3 of the mixed-use retail, hospitality and offices in Joll Road.

 

Colliers Hawke’s Bay Director Danny Blair is the Bay’s leading commercial deal maker, having been involved in many significant sale and lease deals across the region’s CBDs. Danny says Hastings, Havelock North and Napier CBD’s are all close to commercial office capacity and the region is facing a significant shortage of premium office space. He says the renaissance of Hastings has provided renewed confidence thanks to quality developments such as Tribune Development, 101 Queen Street East as well as major investment by council. “Hastings has certainly turned the corner and there’s some great examples of quality development that we can showcase to prospective tenants.

“The biggest issue however is car parking for staff and it makes it significantly harder if you’re pitching to businesses with large workforces.” Napier, which lost some momentum due to a drop in tourists, is now also showing promising signs with Colliers negotiating the Wallace Developments purchase of Dalton House and Vautier House, the largest office setting in the region at 8400m2.

Danny says this project is a game-changer for Napier, invigorating its commercial landscape and adding to the city’s vibrancy. Te Whatu Ora Hawke’s Bay (formerly the Hawke’s Bay District Health Board) will be the anchor tenant, taking up over 2100m2 of office space. “This has created some really strong interest from other prospective tenants and we believe it will be filled quickly. Havelock North continues to transform as a high-end retail, hospitality and professional services precinct and Danny expects some exciting new developments to be announced in the next twelve months. “

Joll Road has changed dramatically already and a Quest Hotel resource consent has been lodged and local developers have also acquired the properties from BNZ to Westpac
on Te Mata Road with an eye for an exciting multi-million dollar complex. As our CBD’s transition and expand the CBD business associations will be looking to ensure their retail and professional service members benefit as well as ensuring visitors get a positive experience.

Hastings Business Association’s acting general manager Emma Sey is excited about the future of her CBD, and although there has been growth in online shopping, nothing can replace the experience of going into retail stores like Thomson Suits and Hutchinsons Furniture. “I have no doubt that online shopping growth will continue to impact CBD’s, retailers in particular, however that doesn’t replace the experience of visiting a store to browse and view items, nor does it replace the strong desire to support local businesses within local communities.

“I still see CBD’s offering more boutique retail options, alongside eateries, services, health & beauty; they will all still have their place in the future,” she says.

 

Napier Business Association general manager Pip Thompson has the same sentiments and a vision for a CBD that is more accessible as well as offering more inner CBD living. Pre COVID19 Napier was the CBD of choice for many locals, especially with a wider mix of national retailers, but with tourism being a major casualty of lockdowns, more building lease signs went up. Unperturbed Pip and Napier City Council are looking at the many positives including the welcomed return of cruise ships and major events.

“We can expect CBD offerings to evolve and adapt to meet the changing needs and preferences of consumers. “For example, keeping our variety relevant, ensuring businesses are well supported so that they stay in the CBD. More indoor/outdoor dining, as well as more experiences and experiential shopping.”

“A CBD that is accessible to everyone, no matter where you live and work and we would love to see more permanent living options such as residential spaces and co-living arrangements, and serviced apartments, allowing people to live and work in close proximity to the CBD.” Pip says.

Havelock North Business Association lead Emma McRobbie says the village CBD experience is ever-evolving and sees an opportunity to enhance further using technology and encouraging innovation. “The significance of the physical CBD remains, offering unique experiences and fostering a sense of community. “By integrating technology, encouraging innovation, and adapting to changing consumer preferences, there is an opportunity to create CBD’s that becomes an immersive hub of activity thus drawing people in.

“Exploring concepts such as more permanent living arrangements, community spaces, and engaging events can help ensure that the CBD remains a vibrant and essential part of people’s lives,” Emma says. All three associations are funded by a targeted rate or levy which is administered by councils. Napier also receives some top up funding while Havelock and Hastings pitch for funding support for promotions and events. They also advocate for their members on issues such as parking and streetscape enhancements.

For Pip, the area that needs most of an overhaul is Ocean Boulevard Mall, which she says is completely vacant and is a high value, high traffic area that negatively impacts on vibrancy in the CBD. Emma in Havelock would like to see a major overhaul of the central public toilets and CBD rubbish bins.

“Ensuring clean and accessible public facilities is crucial to providing a positive experience for both residents and visitors. By investing in the improvement and modernisation of these amenities, we can enhance the overall appeal and functionality of our CBD, creating a welcoming and convenient environment for all.

In Hastings, Emma Sey would like to see landlords enhance their historical buildings in the western blocks of Heretaunga Street, while also saying it’s time for a focus on Stortford Lodge – an area that sits outside of the associations mandate.

“The west-end of Heretaunga Street has some beautiful historical buildings that do need landlord attention which would benefit the entire CBD and the landlords themselves as work put it would give them a broader range of tenant options. While outside of our associations zone, Stortford Lodge coming into the main CBD is an area that requires some attention and beautification.

As the region recovers from Cyclone Gabrielle and an expected tightening of discretionary spending the associations are looking to roll out promotional campaigns to keep foot traffic and consumer spending up. Hastings will continue to roll out its ‘Discover Hastings’ campaign to encourage both locals and visitors into the CBD.

“We’ll also be working closely with partners to help promote the many key events on offer over the next few months including the ongoing Hastings 150th celebrations, Blossom Festival, HB Arts Festival and more.”

Napier has already held a successful campaign to get more people into the CBD following the cyclone as well as a series of events such as themed business breakfasts and street food events. “We launched ‘We Are Open’, which was designed to promote our city’s recovery post-Cyclone Gabrielle using our membership and the community.”

Havelock North has also finished a ‘support local’ campaign and will launch a hospitality promotion to showcase the diverse culinary experiences available.

“Looking ahead, we intend to launch a domestic tourism campaign, inviting visitors to explore and enjoy our vibrant CBD.

“Lastly, as the year draws to a close, we plan to implement a ‘Gift Local’ promotion that will encourage residents to support local businesses during the holiday season. As CBD’s are more activated both during the day and evening, it is hoped that some of the safety issues are overcome, something all three CBD advocates hope for.

Other challenges they face include high cost of living impacting consumer spend, seven-day staffing and streetscape maintenance.

“As Havelock North continues to grow, the need for more car parking spaces becomes increasingly apparent. Addressing these infrastructure concerns is crucial to enhance the overall accessibility and functionality of the CBD, providing a more pleasant experience for residents and visitors alike.”

Our CBD’s are in good heart, with strong commercial tenants as well as retail and hospitality offerings.

Ownership move strengthens IT support across the Bay – Securecom Business Profile

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Running a business in the ‘now’ with an eye on predicting the future has led to Hawke’s Bay IT firm Prophecy Networks being acquired by leading national and fast growing IT firm Securecom.

Rachael Price is passionate about Hawke’s Bay and has been involved with Prophecy Networks since 2011 leading the Napier-based team and twelve years on, Rachael and the Prophecy team could see that it was time for investment and an injection of energy to set the company up for continued growth.

In short, it was a prophecy, to see that their existing client base as well as new clients would like to receive the highest level of service and expertise in an ever increasing cloud centric world. Securecom is a New Zealand managed and owned Managed Security Services Provider (MSSP) providing end-to-end IT services to New Zealand businesses across all industry sectors.

Rachael and the Hawke’s Bay team along with Securecom management in Auckland are in agreement that although there’s been a change in ownership and increase in the breadth of services offered, the Napier based office will remain under local management with Hawke’s Bay clients being supported onsite by local support engineers.

Rachael says Securecom’s suite of services is primarily aimed at the mid-market of around 150-500 staff, but has the ability to scale up with its its largest customer of 1800 staff and down to meet the needs of small owner operators.

“We take a fresh approach to delivering mission critical IT Support Services, improving business outcomes for our customers by partnering with them to lower their IT total cost of ownership (TCO), reduce their cyber security riskand improve the technology experience for their people and stakeholders.”

“We are careful in adding new customers and our focus is on quality and doing what we say we will do and living our values every day,” she says.

Securecom has operated in New Zealand for over 20 years; launched its first cloud service in 2003 and today manages mission critical IT infrastructure of over 250 New Zealand based clients.

Securecom shareholder and board chair Chris New says the joining of two well-established IT businesses is a win-win and injects additional investment, expertise and broader and robust IT provision into Hawke’ Bay. “We are rapt to have a strong presence in the Bay. It’s great that we can buy Prophecy, which has a strong presence and existing relationships and build on that with our capability and capacity.

“We love the Bay, it’s a great place to visit and enjoy and we have more reason’s to be actively involved in the community,” Chris says.

Chris adds that local clients can have confidence that they will get an enhanced customer experience.

“We are particularly proud that our client satisfaction ratings are consistently in the high 90% range. Ultimately, our values are reflected through 3 key stakeholders business is based on three key focus areas – our customers, our people, and our partners.”

“We firmly believe that we will not delight our customers unless we have highly motivated, well-trained people.” Local business development lead Clinton Scott says there’s wide ranging benefits for existing and new clients locally in Hawke’s Bay as well Securecom’s broader customer base around the country.

These range from an expanded product and service portfolio to enhanced expertise as well as investment in staff, research and development, greater market presence and the ability to expand beyond Auckland and Hawke’s Bay to other parts of New Zealand.

“We are also excited about the collective appetite to innovate through more collaboration between the teams in Auckland and Hawke’s Bay which will lead to the development of new opportunities to deliver better outcomes for our customers.

Rachael adds that the tight labour market has been a major issue in recruitment and retention of talent in the Napier office but staff in both offices can now see greater career pathways. “We have staff in Hawke’s Bay that will be very keen to experience working in Auckland while we also expect that some of our Auckland colleagues might find the Hawke’s Bay lifestyle attractive too and look to escape the hustle and bustle of the big city.”

The net result for our customers is access to wider pool of technical experts, focused on delivering very high levels of service. All existing Prophecy staff have been retained and since the acquisition we have employed four new people.

Rachael says the ever-evolving IT sector continues to move at pace. In recent years there’s been the introduction of cloud computing to enable businesses to store, access and process data ‘in the cloud’. Artificial Intelligence (AI) and Machine Learning (ML) are revolutionising various industries, from personalized marketing to healthcare diagnostics and autonomous vehicles and these technologies are becoming more accessible and are driving innovation across sectors. 5G networks provide faster and more reliable connectivity, enabling new applications and use cases like augmented reality, virtual reality, and Internet of Things at a larger scale.

Cybersecurity has become a major threat to all businesses and securing networks and data from cyber threats has become a basic business imperative.

The adoption of hybrid working has created a whole new set of technology challenges as staff now expect to work from anywhere and companies need to find a way to embrace this is a secure way. “With the IT industry being ever-changing, and new developments occurring within the industry on a daily basis, it is crucial for companies to stay updated with the latest news and innovations in the IT space to stay ahead of emerging trends and opportunities.”

In line with our commitment to building meaningful connections, we will continue to host regular networking opportunities throughout the region. These gatherings offer an avenue to share knowledge, stay informed about industry trends, and collaboratively generate better outcomes for businesses. “For our loyal clients they will get the same level of local service but with a wider range of products, services and expertise while we are looking forward to welcoming new clients from throughout the Bay.”

Prophecy is a great company with a great local reputation and I’m very excited about being part of the Securecom family.

www.securecom.co.nz

Slow progress in securing tenants for regional food hub

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Aerial view of Foodeast-haumako A multi-million government and council funded food hub could be without tenants when it is set to open in March 2024. The project has been marred with delays, a redesign to fit a revised budget as well as delays in the appointment of additional board members and a chief executive.

In July, the board of Foodeast-haumako promoted a walk about of the region’s home of food and beverage innovation to drum up support, along with the introduction of a potential but not yet committed tenant, Skybright. Foodeast-haumako chair Craig Foss, appointed by the Hawke’s Bay Regional Council’s investment arm HBRIC, has dismissed any concerns in lack of signed up tenants, saying the board is working with companies which have expressed interest directly.

“There are seven companies with which the board is in discussions with, all at various stages of consideration. He added that no other companies are able to be named at this stage and as
of the beginning of August, no tenancy prospectus had been sent out nor any available information on tenancy rates.

He hoped that an interim CE would be in place to manage this important stage of securing tenants and seeing the completion of construction, set to end in November. A commercial agency may be required depending on how current discussions turn out, he says. Of great concern would be that HBRIC has an expectation of a 6% annual return on its investment and with a warehouse and some meeting rooms, there must be some uncertainty from investors. Potential tenant Skybright is an innovative health food company, that creates fermentation-derived novel protein products.

Skybright owner Steve Boggs is excited about the opportunities of establishing a presence at the food hub.

“We consider that foodeast-haumako offers an enhanced fit-for-purpose facility where we can develop and test our products for the local and international markets. We are very keen to see it reach its potential.”

Craig says “it was fantastic to have Skybright present to our shareholders, funders and others working alongside us.

“The presentation by Steve gave our partners a snapshot of the huge difference this facility will make to primary industry in our region.”

The vision of the facility is one of innovation – providing the food and beverage industry with connections that will assist businesses to develop new products and enhance existing ideas, to take them to national and international markets.

Foodeast-haumako is forecast to add $100 million to the region’s GDP over 15 years and 500 new full-time jobs. Investment in the project is in excess of $18m with HBRIC putting up $4 million for a 67% stake holding with Hastings District Council and Progressive Meats having a 16% share each.

The project was supported by a $12 million grant from the Ministry of Business, Innovation and Employment, which will underpin most of the construction costs.

The foodhub project was initiated by Hastings District Council in 2018 with the ambition to develop new products and sustainable ways to meet the food needs for future generations.

Celebrate your people and team successes

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Let’s Celebrate! In the face of inflationary pressures, interest rate rises, cyclones and uncertainty, it is challenging to rise out of the mire and celebrate the good in our organisations and people. Too often it’s the loudest voice, the trickiest staff member or the latest crisis that takes all our time, attention, and energy.

If morale ever really needed a boost, it is now! It is therefore timely to reflect on how we celebrate the wins and the good performance in our organisations. Unfortunately, it seems a natural and accepted Kiwi trait to not sing praises. We are stingy or subtle with our “thank-yous” and praise and are risking becoming a “thankless” work culture.

A recent HR Trends 2023 survey suggests that more than a quarter of employees believe that they aren’t rewarded or recognised for good work. This statistic is surprising in the tight talent market where finding skilled people is such a challenge. Employers should be pulling out all stops to keep team members motivated and engaged.

Moreover, in a world where New Zealand now sits at the bottom of the OECD in terms of productivity, keeping high-performing teams and employees motivated and recognised needs to become a priority.

Why Celebrate?

According to Gallup, both meaningful public and private recognition are bigger motivational perks than being given a promotion, bonus or raise.

Evidence also suggests that employees feel encouraged to do better work if they receive personal recognition and people who feel recognised are more than twice as likely to innovate and bring forward ideas. It also has a strong correlation with retention. There is also now strong scientific evidence behind the benefits of giving gratitude – it increases happiness, reduces depression, increases resilience and it has proven health benefits such as lower blood pressure and better sleep. Gratitude rewires our brains and it kickstarts the production of dopamine and serotonin, our feel-good hormones – effectively it’s an antidepressant.

So let’s Celebrate… Great leaders take the time to notice and reward great work, but we need to celebrate more than just a job well done or a project completed. Celebrate what you value – look to a situation well handled, organisational values demonstrated, a significant first, courageousness demonstrated, truly exceptional work, consistently good work done, when someone made a difference to someone else, or even a major mistake or failure where it revealed a key learning (see TedTalk The unexpected benefit of Celebrating Failure).

How to Celebrate…

 

 

 

 

 

 

 

 

Say “thank you”! It’s free and it feels great for all concerned.

✓ Start meetings with a quick acknowledgment of wins or achievements.

✓ Build a feedback culture. Don’t wait for an annual review – have regular one-on-ones with team members. The same equation for negative feedback works well for positive feedback and makes it more meaningful (see the accompanying diagram for more detail).

✓ Create platforms for crowd-sourced feedback and celebration. A shared platform allows leaders to hear great stories they may not know about.

✓ Invest in development – it acknowledges a person’s value and is a key retention strategy. Your high performers should have a tailored development plan that is revisited regularly and includes a range of development initiatives from mentoring, coaching, shadowing and secondments through to more traditional training programmes.

✓ Encourage the innovation and input of high performers
by increasing responsibility and autonomy as a means of investing in development.

✓ Have some fun. Our staff spin a wheel to win prizes after various achievements. This can include serious and fun prizes.

✓ Take a break – celebrate during the workday with short breaks as a team – summer ice-creams in our office are a big hit.

✓ Use social media to share success stories.

✓ Move after-work events into the workday. There is a major shift in workplace culture where employees no longer want to use their after-hours time for workplace events as it impedes on time with family, friends or recharging. Use lunch breaks or finish work slightly early for a celebratory social occasion.

✓ Lastly, if it’s all about the bottom line in your organisation, then now is the time to put bonus structures or profit share schemes in place.

All of this points to being more considered in your approach. Its more than just having a programme, but sometimes having one in place will mean you are active and conscious about your initiatives. A final word to the wise – don’t overdo it. Good recognition should be natural and authentic.

For assistance with human resources initiatives including teams, leadership, investigations or facilitated meetings, please contact hr-consulting-hawkesbay@bakertillysr.nz

Workplace suicide prevention programme delivers to over 2500 workers

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The region’s Workplace suicide prevention programme Mates4Life has had an epic two years since it was launched in October 2021. Mates4Life programme coordinator Bronnie Coory says although the programme has gone from strength to strength delivering to over 45 local businesses and 2500 employees, it has highlighted the need and desire for more training in our community when it comes to suicide prevention and awareness.

She says the team has grown reflect the demand to ensure the message is being delivered to businesses across Te Matau-a-Māui. “In the wake of Cyclone Gabrielle, we wanted to do more to say thank you and show support to those that had been affected or were involved in the clean-up, whilst also checking in on their mental wellbeing – so ‘Kai & Kōrero was born’.”

With the help of sponsors NZ Red Cross, Beard Brothers, HB Foundation, Evergreen Foundation, Tumu Group, MPI and the Napier Taupō Music Festival; Mates4Life has been able to load up its BBQ trailer and head into those workplaces. “With full bellies, we remind everyone to check in on themselves, their mates, and to reflect on the positives seen out and about in the community. Mates4Life offers a 4-stage programme that is free to all local businesses.

The first is the Safety Aider training. Bronnie says the Safety Aiders gain valuable skills around effective communication to enable them to help someone who may be in distress, keep them safe and get the right supports around them. Recently Mates4Life welcomed Hawke’s Bay Toyota including its branches in Taupo, Rotorua and Eastland Toyota into the fold.

Bronnie says once a workplace has its Safety Aiders trained, a one-hour Awareness Talk for all staff is held to give a high-level overview of what signs to look out for and what to do if someone is not coping and maybe having suicidal thoughts. Following on from the Awareness Talk is the Connector training.

This is aimed at workplaces that have multiple sites eg, orchards. The Connector comes away with the knowledge and skills to keep someone safe until a Safety Aider or other support arrives. Recently Pan Pac Forest Products, who have been a big supporter of the Mates4Life programme, have had their Connectors complete the workshop. The last is Grower training, aimed at HR / Management and Directors, and this is all about how to support someone returning to work after being affected by suicide, such as an attempt or having been grieved by suicide.

Mates4Life run refresher courses with the above training to make sure everyone stays up to date. Being the first workplace to enlist Mates4Life, Tumu Timbers have just completed their refresher. “Our goal is to keep on top of the training, and providing ongoing support and refresher courses as new staff arrive and others move on.

“The skills learnt from the Safety Aider workshop have had an incredible impact on some companies already – with staff members from Napier Port noting that their ability to be more empathetic with staff and contractors has greatly improved their work environment.”

In early July Mates4Life hosted its inaugural Safety Aider Forum at the Toi Toi Arts & Events Centre in Hastings. Bronnie says this was where Mates4Life got to showcase our existing community who had taken the time to train with us, to enable them to network amongst themselves, gain some extra tools and generally just show our thanks for their mahi out and about in Te Matau-a-Māui. The event was a fabulous success, with over 60 trained Safety Aiders taking time out of their busy schedules to come and join us. Inspirational speaker Korrin Barrett talked about resilience and determination when faced with adversity, and Andrew McGarrol from Nautical Counselling spoke about what a counsellor is and what to expect from a counselling session. The event was MCed by local legend and Hastings Ambassador Henare O’Keefe.

A guest panel followed – where the audience got to ask their burning questions from Kerry Gilbert, Suicide Prevention Coordinator at Te Whatu Ora; Caroline Wilson, CEO of A-OK NZ
(Mates4Life Programme Provider). Shane Heaton from our Community Partner Isaac’s Plumbing, Pumping & Electrical; Andrew McGarrol and our own Tyson Ataera, Mates4Life Kaiwhakahaere/Lead Facilitator. All up, none of the above could have been achieved without the ongoing support of our community funders. The latest to come on board is the team at Isaac’s.

We are eternally grateful for how much support they have shown us by fully integrating our programme into their workplace as well as becoming a sponsor. Mates4Life is a not-for-profit, and to continue our mahi creating a life-saving community here in Hawke’s Bay we need your support.

To find out more, visit mates4life.org.nz to become a sponsor, donate or to have us come and train your workplace.

Considering buying a business?

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While there is a constant stream of businesses coming up for sale, the tricky bit is knowing how to assess the best business opportunity. As long as you ask the right questions, it should be fairly straightforward. Here’s the good news. I’ve compiled some of those ‘right’ questions for you. Before making a final decision I encourage you to seek professional advice and carry out due diligence.

Customers
What are the demand drivers within the existing markets the business sells into or services? Is it discretionary spending or essential products or services? If discretionary – does their target market have discretionary funds to invest? Also what are the market trends?

Customer Risk
How is the business spread across its clients? Generally the wider the spread the lower the customer risk.

Service Business
Service businesses will have fewer issues in respect of supply chain considerations, but their use of staff and contractors will be critical components to review. Product Business
Is there diversity of product supply available? If not, is there sufficient “buffer stock” to see the business through difficult times? Who are the competitors and what are their strengths and weaknesses?

Competitors
Any likely change or addition to the competitive environment – either by other providers of a similar product/service or a new generation product/service that could upstage demand for the target business outputs?

Staff
Review the historical acquisition and retention of staff – is there longevity or quick turnover? What is the essential culture of the organisation? Will your management style suit that culture? Is there a critical staff member that simply has to be retained?

Plant and Equipment
Understand the condition and market value of the business assets. What are the forecasted repair and maintenance expenses? What level of capital expenditure will be required to upgrade assets? Consult an accountant regarding depreciation considerations.

Stock
Check margin against stock turn – generally these figures have an inverse relationship i.e. high margins – low stock turn. Is there old or slow moving stock that should not be valued? Who has responsibility to move old or obsolete stock – vendor or buyer?

Systems & Intellectual Property
Is there measurable business goodwill as opposed to personal goodwill attached to the outgoing owner? Are there operating manuals? How long can the business operate without the owner?

Gross Margins
Can the business adjust pricing to reflect increasing wages and/or operating expenses? If importing, can product pricing be increased to offset increased freight costs and/or a declining exchange rate?

Cashflow
‘CIMITYM’ – Cash is more important than your mother. Is the business cashflow positive from day one or is there a need for significant working capital? This all impacts on the total cost of ownership.

Business Value
Does the business earnings multiple fairly reflect both historical and potential future trading? Does it take into account working capital, capital expenditure or cashflow requirements? What have businesses in the sector sold for recently?

Regulatory Environment
Are the rules about to change? Will the business be impacted by changes to local or central Government policies or budget changes to that sector? Will the regulatory costs soon increase (or decrease)?

Which personal investment strategy is right for you?

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For anyone with an eye on the NASDAQ and S&P500 markets, you might have noticed big global tech names like Apple, Amazon and Google are all up 40-50% year to date. But most notably, the chip maker Nvidia is up more than 150% year to date, all heavily weighing on the overall market direction. Hindsight makes things crystal clear when we see who the winners and losers are after watching companies go boom or bust in unstable markets.

But without a crystal ball to make future investment decisions with, how you choose to participate should ultimately come down to your personal investment goals and tolerance to risk. There are two key investment strategies that both have their advantages and disadvantages, and their effectiveness may vary based on market conditions.

So, which one might be right for you? Active Investment strategy Active investing involves handpicking securities to try to generate superior returns or outperform a benchmark index. It relies on the belief that skilled investors or managers can generate superior returns by closely monitoring market trends and analysing financial data to identify undervalued assets.

Active Investment strategy

The appeal of active investing is the potential for higher returns (for example, if you bought Nvidia shares on the 1st of January 2023). Skilled active managers may outperform market averages, generating alpha returns (returns greater than the index). Active investing also offers the opportunity for personalised decision-making, as investors have direct control over their portfolio compositions. This flexibility allows for tactical adjustments in response to changing market conditions.

What to keep in mind Consistently outperforming the market is difficult as it requires accurate timing, stock selection skills and the costs associated with providing these. Passive Investment strategy Passive investing aims to mirror the performance of a specific index by holding all or a representative sample of securities within that index, mainly through ETFs (Exchange-Traded Funds). In this approach, passive investors benefit from broad market exposure and reduced stock-specific risk by holding a diversified portfolio.

The appeal
The appeal of a passive investment strategy is in its simplicity, reduced management cost and certainty to achieve a market return.

What to keep in mind

Passive investing is a long-term strategy, requiring investors to ride through the market lows and highs, continuing to remain focussed on the long term goal.

What else should you consider?

Understanding fees and the difference between each strategy is very important for investors as it can impact long-run performance. Being overly active could eat into returns due to transaction costs, and so too can high active management fees (performance fees especially). Conversely, being subject to above-market passive management fees can impede the ability to mimic the targeted market index return.

A common approach in portfolio construction is to incorporate both active and passive strategies. Utilising an asset allocation framework, investors can include active or passive strategies to target the best result within each asset class. For example, using a stock selection method for NZ equity exposures, where the market is smaller so investors can be selective with what to own and what not to own. Whereas for global equity exposures, investors could use passive ETFs to diversify across markets to gain greater depth of exposures. Ultimately, a consideration before chasing outperformance using either an active or passive strategy is to ensure a robust investment plan is in place that reflects investment objectives and risk tolerance. Having structure around when or what to add/reduce or buy/sell can turn out to be far more important to meeting investment goals than being 1-2% above or below the market.

Andrew Atkinson is a Wealth Management Adviser at Jarden’s Hawke’s Bay office where he provides strategic investment advice and portfolio management to individuals, family trusts and charitable trusts. Get in touch if you would like to know more:
www.jarden.co.nz or +64 6 877 9074

The information and commentary in this article are provided for general information purposes only.  It reflects views and research available at the time of publication, using external sources, systems and other data and information we believe to be accurate, complete and reliable at the time of preparation. We make no representation or warranty as to the accuracy, correctness and completeness of that information, and will not be liable or responsible for any error or omission. It is not to be relied upon as
a basis for making any investment decision. Please seek specific investment advice before making any investment decision or taking any action. Jarden Securities Limited is an NZX Firm. A financial advice provider disclosure statement is available free of charge at https://www.jarden.co.nz/our-services/wealth-management/financial

ROCKING AWARDS: MARKETING TEAM AND CAMPAIGN OF THE YEAR

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It’s been a year of strong success amid enormous challenges for the team at innovative snack sized apple company, Rockit Global Limited, which has taken out the Marketing Team of the Year at the TVNZ NZ Marketing Awards, and the Marketing Campaign of the Year Award at the Asia Fruit Awards in Hong Kong.

The TVNZ NZ Marketing Awards celebrate the collective excellence in strategic and creative thinking that goes into award-winning marketing. They recognise exceptional marketing and marketing professionals that shape successful businesses across all aspects of the discipline.

At a ceremony held at Spark Arena on Wednesday, Rockit’s Global Marketing Team accepted the Team of the Year award, for its incredible collaboration across the entire business to drive Rockit results and growth in a challenging year, amid strong competition from New Zealand’s top marketing teams.

Rockit General Manager Global Marketing, Julian Smith, says the team were nominated by the business for its strong response to Cyclone Gabrielle which brought unforeseen challenges amid what was set to be Rockit’s strongest season yet.

“It’s been a challenging year for our teams, growers and the business with Cyclone Gabrielle wiping out 30% of our crop. It was incredible that everyone was accounted for across the business and the team really rallied, finding a way to put more product into market and remodelling the global business marketing model with all stakeholders to put the company in a position to meet its KPI’s.

“Led by the marketing team, Ready. Set. Rockit. became a call to arms to drive out culture across the business, while also localising in key markets to engage consumers and create value added marketing. We couldn’t be prouder to accept this award which is a credit to the entire Rockit supply chain – from our growers, to our orchard, packhouse, office and global teams – in a tough year,“ says Julian.

Rockit was also awarded the AsiaFruit Marketing Campaign of the Year Award for its innovative efforts in China, through its collaboration with world-leading entertainment franchise, Pokémon, in an extensive 12-week omnichannel campaign to celebrate China Children’s Day on 1 June.

The premier annual awards celebrate excellence and recognise outstanding achievement across Asia’s fresh produce business.

Leading Pokémon character Pikachu featured prominently across Rockit’s channels in China, including digital and social activity, in-store activations, events, packaging, and promotional materials.

“We are incredibly proud to have won the Asia Fruit Award for Marketing Campaign of the Year for our consumer-led, omnichannel campaign through our collaboration with Pokémon,” adds Julian. “Pokémon stands out as one of the world’s leading branded properties, enabling us to connect with millions of new consumers who are looking for innovative brands that are fun, engaging and highly collectable for all ages.

“This recognition is another significant milestone towards our goal of becoming the world’s most loved apple brand, and we’re excited to be encouraging millions more consumers to try something new, do something different and Ready. Set. Rockit!”

The value of history

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When Damon told me that this issue of The Profit was going to feature 150 years of Hastings City and look at some of our longest established business, I thought it appropriate to dig into the Harvey family history, as there has been a long association with the Harvey family providing real estate and property valuation services since they stepped off
the boat in the 1870’s.

In fact, the Harvey family, who originally came from Cornwall were involved in property there too. You could say property is in our DNA. It all started when Elizabeth and Thomas Harvey sailed from Cornwall on the SS Helen Denny from the UK to arrive in Port Ahuriri, Napier on 22 October 1874.

Thomas’s three children, William, and his half siblings Elizabeth and John also made the journey. The two half brothers, William who is my great great grandfather and John Thomas originally bought a horse and coach business from the Crowther family.

However, in 1918 they established their own business known as Harvey Fulton and Hill, Public Accountants and Land Agents. This business originally covered Napier but later expanded to cover Hastings as well. My great great grandfather also a staunch supporter of the preservation of scenic spots in the province, and resolutely fought (though unsuccessfully), for the preservation of Balls Clearing, a bush in the Puketitiri district, and the area known as the Turangakumu Bush on the Napier-Taupo Road.

He was also a strong advocate for the East Coast Railway, and at the same time he was partly instrumental in the determined efforts made to have the Lake Waikaremoana Hydro Electric Power scheme developed. He was a member of the provincial committee that laid the foundation for the establishment of the Hawke’s Bay (HB) Electric Power Board. William, and his wife went on to have four children, of which the two boys, William Thomas (Bill) and Norman also went into the family business of Harvey Fulton and Hill continuing William’s legacy who died in 1945.

From 1932 Bill managed the Hastings office and became the General Manager of Harvey Fulton & Hill in 1965 when he bought his brother Norman out. Norman continued to run a real estate business in Napier until the early seventies, and then he moved to Auckland. So, the now Hastings based business of Harvey Fulton & Hill progressed.

My grandfather Bill Harvey was also a Registered Valuer. Interestingly, back in those days he was registered under the Valuers Act of 1948 when became a registered valuer for good behaviour and ability, no exams required – bit different to the current state of play! Bill was also the Hastings City Valuer and was very involved in the acquisition for the Council (Hastings City Council) of most of the land at Flaxmere.

Consequently, the Hastings City Council developed parts of Flaxmere to the extent of what we know today. My grandfather managed the business right up until his untimely death from cancer in 1971 and then my father, William Jens (Jim) took over the business. Under Jim’s tenure Harvey Fulton & Hill merged with Barry Long Real Estate, and for the first time since its inception Harvey Fulton & Hill had a name change becoming Harvey Fulton & Long being a Real Estate Agents, Valuers and Auctioneers, with the firm’s auction rooms situated in Russell Street in a location that we held from 1932 until the property was sold to become part the Bay Plaza development.

Dad, Jim Harvey was involved in Real Estate and Valuation and was President of the HB Real Estate Institute, Chair of HB branch of the Valuers’ Institute as well as receiving the Government appointment to become a member of the HB Land Valuation Tribunal, a position he held for about twenty-eight years. In 1997 the two branches of the family met up again when Harvey Fulton and Long became part of the Harvey’s Real Estate Group, which was founded by Norman’s son Ross Harvey, continuing the tradition providing both real estate and valuation services. However, in 2006 I bought back the valuation division within the HB franchise and set up Williams’ Harvey as an independent valuation practice. My career has been property focused but diverse giving me broad knowledge of the property industry in New Zealand (NZ).

Starting as a Property Manager at NZ Rail in 1990 I was promoted to be one of their youngest Area Managers until embarking on my OE in 1994. On returning I joined the family business selling residential/commercial real estate. After completing my valuation registration in 2001 I then became the General Manager for Harvey’s Real Estate, Hawke’s Bay and managed four business branches with over 50 staff through setting up Williams’ Harvey Registered Valuers.

In honour of my forebearers, who have all named their first-born sons William (known to their peers by their second name) and since William Harvey founded the first business four Williams’ have been valuing property or selling property in the region since 1918, hence the company’s current name Williams’ Harvey.

I am proud of the team, the business and the fact that I am the fourth generation Harvey involved in a business that started over 100 years ago.

Artificial Intelligence – user beware Privacy and security are crucial

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Artificial Intelligence (AI) has emerged as one of the most transformative and revolutionary technologies in recent history. From its humble beginnings to its widespread applications today, AI has garnered significant attention for its potential benefits as well as the inherent threats it poses.

Discussions and experiments in technology date back to 1946, when Alan Turing initiated the study of computer-based intelligence, and the term Artificial intelligence was coined as an academic discipline in 1956 by John McCarthy. Since then, AI has been central in many Sci-Fi TV shows and movies, but its potentially disruptive nature emerged with movies such as the 1984 War Games starring Matthew Broderick, 2004’s I Robot classic with Will Smith, and 2008’s Eagle Eye with Shia LaBeouf where it took on a threatening nature to human existence.

With the emergence of technologies like Alexa, Sari, ChatGPT, and other AI advancements, it is undeniable that science fiction has become a tangible reality. The impact of these
AI technologies has been profoundly beneficial across various sectors.

AI has increased efficiency and productivity in business, improved decision-making and problem-solving, making significant breakthroughs in healthcare and medical research, and automation and robotics. Despite its numerous advantages, AI also brings forth certain concerns that need to be addressed. Many are concerned that job displacements stand as a significant worry as automation and AI technologies potentially replace certain roles traditionally performed by humans. Focusing on reskilling and upskilling the workforce is crucial to adapt to the changing employment landscape.

Another major concern is the breach of personal data. As AI systems rely on vast amounts of data for training and operation, the privacy and security of this information become crucial.

For example, it isn’t common knowledge that ChatGPT knowingly records everything typed into it, and there is no clear warning that it is doing so.

This caused OpenAI to introduce in early April this year a “privacy feature”. This shift allows users to disable sharing their chat history in their user settings, but there isn’t a clear banner or other warning to point out this option (https://openai. com/blog/new-ways-to-manage-your-data-in-chatgpt). Safeguarding personal data from unauthorized access and misuse should be a top priority, ensuring that stringent measures and regulations are in place to protect individuals’ privacy. The history of AI is a testament to human ingenuity and our relentless pursuit of creating machines that can emulate intelligent behaviour. AI has the potential to revolutionise numerous industries, drive innovation, and improve our lives in countless ways.

However, it is essential to approach AI with caution, addressing the challenges it presents, such as job displacement, ethical concerns, privacy, and the potential risks of autonomous weapons. By navigating these challenges thoughtfully, we can harness the immense power of AI while ensuring its responsible and beneficial integration into society.

Tom is the owner of Govern Cybersecurity. He has over 18 years in the cybersecurity and IT industry at management level, and for the past 6 years has been a lecturer in cybersecurity at the Eastern Institute of Technology. He has earned certifications in ISO 27001 Lead Auditing, Lead Implementation, SOC2, and Ethical Hacking. These certifications are considered the international gold standard for business security.