A new era for MCL Construction

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MCL Construction has built hundreds of commercial, industrial and residential buildings for others in Hawke’s Bay but for the first time in 72 years, it will commence building its own purpose-built construction facility.

It will also be the first time MCL will move from the site in Kaiapo Road it has occupied since 1949.

MCL Construction managing director John Bower said the company will move its factory and offices  2.5 kilometres south down Maraekakaho Road to a 1 hectare greenfields site near Tumu ITM and the new Irongate industrial zone.

This is another significant milestone for the business, following the introduction of new directors Philip Mitchell, one of the firms project manager/quantity surveyor, and Michael Bush, the financial accountant, in 2017.

“This is a fantastic opportunity for MCL to design and build its own modern construction facility that will include a joinery factory and offices.

“Our current site was once surrounded by orchards but is now very residential and I’m sure many of our neighbours will be happy to see us move on,” says John Bower, managing director at MCL.

MCL will commence construction of the 2,100 m2 joinery factory this month (June) with the 350 m2main office, which will be designed around a central open atrium, starting in November.

John says there’s a strong focus on attracting more females to the business.

Leading the way has been Sarah Mason, who’s been with MCL for 18 years, and for the first time in the company’s history, a female – Denise Otto – has been appointed to lead the joinery division, which offers high-end commercial and residential joinery.

Denise moved with her family from South Africa to New Zealand in early 2019 and she and her husband had previously owned a joinery business. Denise has a diploma in architecture with a specialist interest in joinery design, delivering the complete package with manufacturing and install management.

“It’s great to see the transformation of the business with a greater female presence. Having a joinery manager who’s a woman is really refreshing.”

Another trail-blazing female in the industry is Hastings-born construction project manager Kayla Oughton who has a Bachelor of Building Science with majors in Environmental Science and Project Management.

If MCL’s track record is anything to go by, you can expect Kayla and Denise to be around for many years to come, like John at 30 years, who still pales in tenure  to John Caccioppoli who has been with the company for 60 years, recently retired Mark Adams for 44 years and many other project managers and site managers.

John says MCL is particularly proud of the many tradespeople who have undertaken apprenticeships over the years. Presently there are 4 apprentices at varying stages of their time. We take great pride in having long serving loyal staff who train further into site management.

“There have been hundreds that have completed their time at MCL, many of whom are still with us today. We take great pride in retaining long-serving loyal staff.”

MCL’s presence can be attached to many prominent buildings across Hawke’s Bay including the new Eastern Region Police headquarters, the New Zealand Gold Architecture Award winning Iona College’s Performing Arts Centre and Information Resource Centre, Pak N Save Tamatea, the KiwiBank customer service centre in Hastings and the shared work space Hastings Hive, Business HQ and Club Hastings.

John says the Hawke’s Bay construction scene is riding a wave with projects on stream for at least the next 12-18 months with projects such as The Crossing – a retail hub in Taradale Road and a new building for Ministry of Social Development in Napier and new Petfood Factory in Awatoto.

 

“There’s significant forward work, which is great. There is pressure though around building supplies and labour but we’re well positioned to continue growing.”

MCL employs over 110 staff, from labourers, apprentices and carpenters to site managers and administration staff.

The MCL banner also features MCL Interiors, which specialises in suspended ceilings, office partitions and passive fire.

MCL is proud to be actively involved in the community supporting the likes of the MCL Construction Triple Peaks Challenge, Lowe Corporation Rescue Helicopter, and Havelock North junior rugby.

Visit www.mclbuild.co.nz

The Dark Web – Beware!

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What is the dark web?  The dark web is a part of the internet that is not indexed by search engines and is a hidden collective of internet sites only accessible by a specialised web browser. It is used for keeping internet activity anonymous and private, which can be helpful in both legal and illegal applications. While some use it to evade government censorship, it has also utilised for highly unlawful activity.

On the dark web, hackers can buy stolen user email and software accounts to break into the computers of unsuspecting victims. They can hack bank accounts and get their hands on critical personal information to commit identity fraud.

Chances are you and your organisation have digital information caught on the dark web and is available to cybercriminals. Detail could include login credentials for your email or social media accounts, private financial information like credit card numbers or online banking credentials. Considering the above, developing strategies for protection from potentially crippling breaches is something you need to be proactively thinking about.

Here Are Some Strategies for End-user protection against exploitation by the dark web

Regardless of being a business, parent, or any other user of the web, you’ll want to take precautions to keep your information and private life off the dark web.

Identity theft monitoring 

Dark Web monitoring is critical if you want to keep your private information from being misused. All types of personal data can be distributed online for a profit. Passwords, physical addresses, bank account numbers, and IRD numbers circulate in the dark web all the time. Leaks of personal data can also lead to damage to your reputation via social fraud.

Antimalware and antivirus protections 

These are equally crucial to prevent malicious actors from exploiting you. The dark web is filled with information theft from malware-infected users. Attackers can use tools like keyloggers to gather your data, and they can infiltrate your system on any part of the web. Computer security programs like ID Agent and Webroot are comprehensive and cover identity monitoring, antimalware and antivirus defences.

Change your passwords and follow some basic rules

Enforce a schedule in your organisation that ensures staff change their passwords for critical business applications and encourage them not to use their work email address for personal applications, like Facebook and Instagram. You can even schedule and set automatic reminders that let team members know it’s time to change their password. Encourage your team to take on these strategies with their personal email and financial accounts as well.

Review your cybersecurity regularly

With new cyber threats appearing constantly, committing to a regular cybersecurity assessments and check-ups are common sense. Even when you think all your IT policies and procedures are secure, cybercriminals are trying to develop workarounds to exploit you, steal your data, and sell it on the dark web.

Work with an IT provider who understands cybersecurity and the associated risk landscape and schedules regular cybersecurity assessments. Indicate that you are keen to identify any potential weak spots that could result in sensitive organisational data ending up on the dark web.

Keep your team in the loop 

While you and the other users might not be cybersecurity experts, everyone has an important role to play in minimising your risk.

Explain dark web cybersecurity threats clearly and consistently to your team. Let them know that they must be vigilant. When you include your team in your cybersecurity effort, you not only stress how important it is, you also empower them to play an active role in a well-rounded cybersecurity strategy.

Beware of unfamiliar links and downloads

Also, be sure to tell your team that they should keep an eye out for any email communications or pop-ups that seem suspicious. Even legitimate-looking emails from everyday service providers like your bank, utilities or Microsoft asking for details or asking you to validate information should be treated suspiciously. Cybercriminals are constantly looking for ways to trick users into handing over information that can then be sold on the dark web.

Encourage users to watch out for email phishing or ransomware scams. Tell them to be wary before clicking on any unfamiliar link. Above all, encourage an open-door policy where team members feel comfortable approaching you about anything that seems suspicious. Remind them that if they doubt that a link or email is legitimate, they should always report it to management or your IT provider.

Return of the Brains trust

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If there is a silver lining when talking about the global COVID-19 pandemic, it has to be the return to our shores of thousands of highly skilled Kiwis.

For years, New Zealand has been a casualty of what has been termed ‘brain drain’, as highly qualified New Zealanders left in search of opportunities aboard.

Recent figures show that over 50,000 expats have already returned home, with predictions that as many as 500,000 are likely to make their way over the next few years.

What will returning Kiwis encounter on their return to the homeland?

One of the first issues of reverse migration, is likely to be a period in managed isolation and quarantine facilities and the associated cost. Legislation has been passed to enable the Government to recover some of the costs of managed isolation and quarantine facilities for those returning to New Zealand. The COVID-19 Public Health Response and Amendment Bill provides a legal framework to allow the Government to set payment terms, exempt groups of people and waive charges in cases of financial hardship. New Zealand citizens, permanent residents and temporary entry class visa holders are all sharing the costs in varying degrees.

When returning Kiwis finally find freedom on the other side of MIQ, what will the landscape look like?

This population of people are bringing with them advanced skills and networks obtained through their international experiences and New Zealand needs to ensure that these benefits and experiences are shared and captured to enhance the local economy.

While some will have the flexibility to work remotely for international employers, many will be seeking work within the domestic job market. They will benefit from the recently signalled employment law changes which aim to improve employees’ entitlements, increase the minimum wage and sick leave entitlements.

While a considerable number may settle in Auckland, the provinces will benefit too. The purpose of a recent survey carried out by Kiwi Expat Association (KEA) was to better understand offshore Kiwis and their intentions, such as their timeframes to return home, skills, industry experience and wealth, as well as their needs upon return.

The survey indicated that while 32% of returnees intend to reside in Auckland, the remainder are looking to return to the regions, with 22% leaning towards somewhere they may not have lived before.

The big question – what does this mean for our housing market, which is already under the spotlight given recent changes to the Residential Tenancies Act, increasing housing prices and new tax rules in the past year?

While there is continued pressure on the housing market, the effect of the legislative changes announced in March 2021 by the Labour Government are likely to flow through. These changes are intended to make the property market fairer for first home buyers and to take out some of the ‘heat’ from the market. The changes include an extension of the Bright Line Test which sees tax paid on any capital gains made if an investment property is sold within a set period. The extension of the bright-line test from five to ten years will effectively see a longer lock-in period for property investors and is intended to slow down property sales.

Another change was the removal of interest rate deductibility from investor housing. Proposed to begin in October this year, deductibility on mortgage interest will be reduced by 25% increments for existing property investments and will be fully phased out by April 2025. This policy will generate a significant amount of additional tax to be paid by property investors and will weigh on cashflows and potentially impact decision making.

While the true effect of these recent changes to is yet to be seen, returning Kiwis can be sure that the Government is focused on improving the supply of housing to the market. This is also the intention with the recent review of the Resource Management Act.

While it may not be a smooth home coming for all, many Kiwis will simply be grateful to return to a country which has been largely unaffected by a global pandemic. And for us who are already here, we should see the influx of those returning home as an opportunity for growth and connection.

AUTHOR: Christine Symes is a director at Bramwell Bate and provides advice on a range of matters including property, company and commercial, trusts and estates, and Wills and Power of Attorneys.

christine@bramwellbate.co.nz

Conroy’s keeps moving forward

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Family-owned business Conroy Removals celebrate 50 years in 2022 and despite one of the most challenging times in their history, dealing with both the COVID pandemic and a flood wreaking havoc at their Onekawa, Napier base, the father and daughter-run operation has emerged stronger than ever. Just prior to COVID, general manager Fiona Conroy followed in her father David’s footsteps, joining The Icehouse business owner’s Programme at the Hawke’s Bay Business Hub.

Growing up, there was a hard and fast rule for Fiona Conroy – no joining the business until she had been out in the world to decide if it was a path she was really interested in.

Ever since she can remember, Fiona has been immersed in the family business. “That was just life, there was always the trucks and holiday work in the office.” After a “much-loved” OE and finishing a Bachelor of Business Studies, an opportunity came up to join the Wellington branch. “I thought I’ll give it 12 months and see how it goes” plus having finished uni’ studies meant there was a back-up plan “just in case things didn’t work out”.

Fiona eventually took the Conroy’s sales rep’ position in 2003 covering the Wellington, Manawatu and Wairarapa regions. Now back in Hawke’s Bay, Fiona is Conroy’s GM, based in the original Lipton Place Onekawa offices, juggling three children and being a director of local business, Pacific Powder Coating run by husband Joe Koenigsberger.

Off the back of the property market, this year’s growth at Conroys has been significant.

“There is a big push for house moves out of the cities. The continual lockdown for Aucklanders meant if they have the opportunity to leave, then it into the regions.

“The trucks are definitely seeing a north to south flow. We thought our international part of the business would tank post-Covid but Kiwis are coming back from all over the world.. “In August last year the inquiry for the sales team from Aussie spiked and it really hit us in December. Then we saw a plateau because people couldn’t get a booking in a quarantine hotel but now, with the bubble, we are seeing another lift of Trans-Tasman traffic. But the international shipping is a real headache. We have a contract as a moving group for preferred rates and space and it’s still a real struggle to to get any space at all.“

The commercial side of the business was also busy with people buying new furniture and doing home renovations.

Looking back on the lockdown Fiona admits initially it felt like a panic. “Getting everybody home, we had a full diary – there was massive pressure. Only some small elements of the business were considered essential and effectively 70% of our work stopped at Level 4.”

“Dad and I came into the office and sat at opposite ends of the boardroom and just worked through how we were going to make it work.”

Fiona had joined the Icehouse in early 2020 to develop her management and leadership skills.

“I had enrolled in the Owner Operator Programme but suddenly when Covid hit, I felt overwhelmed with the unknown ahead and thought, what am I doing starting now but actually in hindsight the timing was ideal. We have been foot down ever since and that’s where I have appreciated being in the Icehouse. I have been able to step out of the office for a few hours or Zoom with the other owners in the programme while also having the one on one coaching with Michaela Vodanovich. The coaching time has been totally invaluable to pause and reflect. Michaela is so experienced and has been direct and straight up. You tend to lose focus when you are really busy and the strategic plan gets lost, so now I have been able to work on the plan during coaching sessions instead of trying to do it in the weekend. Being able to do the Programme in Hawke’s Bay has also been a godsend.”

And then there was the November flood to deal with – repairs are on-going.

“It’s a disruption and a whole layer of something we didn’t need to deal with. Our main challenge this year is keeping up with demand for moving services and recruiting staff. The driver shortage nationwide is huge and we need to focus on enticing people into the transport industry and learning our trade – not easy when there are so many jobs opportunities available. We are hoping the government will ease border restrictions in the months ahead – we need people which is a challenge we share with many Hawke’s Bay businesses.”

Focus on team culture gives business duo the edge

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When Erin Maloney was six months pregnant, husband Jared announced he was leaving his job in the meat industry and launching a start-up. Catalyst Fuel Refunds was born soon after, as was son Jack.

The business captured a niche market, with staff and customer numbers growing fast. Being new to business ownership, Jared looked around for options to develop his management skills.

He joined The Icehouse Owner Operator Programme and eight years later, the Catalyst team is still heavily involved with The Icehouse, alongside the couple’s second start-up business Tiny Nation, commercial property interests and a separate entity offering shared services across all businesses.

Anyone operating off-road petrol machinery should know about the opportunities to recoup excise tax for their vehicles. The offering applies mainly to farming and forestry businesses but anyone fitting the criteria can apply. Catalyst makes it a simple process with their bespoke software that integrates with fuel companies and NZTA.

When the business was first born, there were no other agents in the industry with their own software helping business owners to claim refunds so, not surprisingly, Catalyst took off. Jared joined The Icehouse with a view to developing his leadership skills to support him in creating the best team culture as staff numbers grew.

“For me it was about building my skills in finance and administrative processes but also I was managing a wide range of people. We were focused on building the team to get them through the growing pains of being a start-up and we have learnt a lot. Back then, we were working off the smell of an oily rag and we had some challenges but now, we have grown an amazing team.”

Erin was able to join the one-on-one coaching sessions as part of The Icehouse programme. She was fully involved in the strategic development of the business and her focus was always on the people.

“We were starting a family at the same time and so were increasingly aware of the pressure of juggling the work/life balance. It’s been really important for us to look at how to engage people – still with the high levels of accountability – but also inspire them to want to be here and do the mahi as well as having the time they need to spend with their families.”

In 2019 the couple decided to implement a four-day working week for the team. Staff work four days to be gifted the fifth. Jared adds that while the results are great, it’s more rewarding to hear about the extra things people can do for their families on that day off, “like grandparents taking their grandchildren to swimming lessons”.

“We’ve seen a 10 percent improvement in productivity in 20 percent less hours, and an 81 percent reduction in absenteeism, but for us it’s more about the recognition that everyone has a life outside of work.”

General manager Donna Braddock says the four-day working week has seen loyalty to the business grow significantly. “It takes time to recruit and develop a new team member – we want them to stay.”

Donna has also had a dose of The Icehouse, enrolling in the Effective Leadership Programme post Covid-19 lockdown. In the last year Erin has been able to switch her time focus to her new start-up childcare business, Tiny Nation.

“It’s been pretty seamless and from a set-up point of view, having the systems and processes embedded with Catalyst over the years gave me the launchpad for Tiny Nation. While we needed specific early childhood education skills, a lot of the general business functions we already had in-house and were able to share.

“We have team members in Catalyst who have been with us since near the start and they are looking for the next opportunity, so diversifying our business platforms provides points of interest for them that allow us to retain and grow our people across the board.

From my point of view, Tiny Nation wouldn’t have been able to scale nationally as quickly as we have without the shared services resource.”

Erin says having the access to shared resources that a start-up wouldn’t normally be able to afford has planted the seed as to how the shared services entity could help other small start-up businesses.

“That’s a major strength of the whole organisation in that we are always asking, how can we do things better? It’s about working smarter, not harder.”

The road to success for QRS starts with being community focussed – Nigel Pollock

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Nigel Pollock, Quality Roading and Services (QRS) chief executive puts the Wairoa based roading firm’s business award win down to maintaining a balance between economic support for council (which owns QRS) and its social responsibility to the people of Wairoa. QRS won the Hawke’s Bay Chamber of Commerce 2020 Pan Pac Supreme Business Awards at the end of 2020, with Nigel celebrating the win with most of the 87 strong team and a very proud mayor in Craig Little. The Profit interviewed Nigel on what the win means for the business and Wairoa district and what’s next for the business.

Briefly describe what QRS does? Tell me a bit about the businesses – what’s the mix of council and commercial type of business it does?Is all the work based in and around Wairoa or further afield?

Quality Roading and Services is 100 percent owned by Wairoa District Council. We’re known as a council-controlled trading organisation or a CCTO. We have our own board of directors with reporting responsibilities to Wairoa District Council councillors and have been trading for 26 years. Our speciality is civil construction and roading infrastructure. About a third of our work is for Wairoa District Council. Just under two-thirds of our work is for the Government and a small amount of work is in the private sector. We offer a full range of civil engineering skills, experience and equipment. We work mainly in and around Wairoa, which has a geographical footprint covering a third of Hawkes Bay! But we’ve also worked as far south as Bayview, north to Matawai, and west towards Taupo.

QRS was a finalist in 2019 and then took out the top prize in 2020 – it’s obvious the business was performing well – what (if anything did you do differently) to take out the awards?

Our balance between economic support for our owner, Wairoa District Council, and our social responsibilities to the people of Wairoa was, I believe, is the reason we won the Supreme Award. Last year’s award entry process forced us to look at how we navigated 2020 which was a tough year for everyone. Here at QRS a lot of the groundwork had already been done in 2019. We’d invested in diversity, growth, customer service, staff, and greater strategic thinking. We had a strong balance sheet and so were able to rise to the challenges of the difficult year. Our pre-tax profit was 27 percent higher than targeted by securing more work than predicted. Revenue was $10 million more than targeted. Our operating profit before tax and shareholder distribution to Council was $800,685. Our agreed shareholder distribution to Council was $250,000. The numbers reflect QRS’s larger, more complex and challenging contracts.

You passionately spoke out about the people of the organisation in your acceptance speech – how much of a difference does it make having a team that acts as ONE with each feeling that they are making a strong contribution to the firm’s success?

It’s all there in our overarching vision: a strong and successful company, growing the Wairoa community. Ehara taku toa i te toa takitahi, engari he toa takitini which translated means: my strength is not mine alone, it is the strength of many. We’re a family, many staff are actually family with mothers working alongside sons, brothers working alongside uncles. It makes us strong. And I don’t think any of us will forget that night. It was a fantastic feeling to be there along with QRS staff when the company’s name was announced as winner. It was a privilege to see firsthand how proud they all are of the company they work for. QRS whānau are true ambassadors for our district.

QRS is one of the largest employers in Wairoa, this a responsibility that weighs heavily – or more something that the firm wears with pride?

It’s an absolute privilege and we wear it with pride! We’re the second largest employer in Wairoa after AFFCO. Due to our location and the district’s demographic attracting and retaining potential employees can be seen as a challenge. But here at QRS our objective has always been to be an employer of choice for operational and highly skilled staff whether they be locally sourced, from New Zealand, or another country. We promote the work as a career while championing Wairoa’s lifestyle. It’s a privilege to be able to employ locals and see them thrive and flourish. We invested $7 million in salaries and wages last year. What are the future growth plans for QRS? We are invested in a new operations hub. The 750 square metre hub will provide space for an additional 30 staff, central meeting and briefing rooms, human resource and finance workspaces. It will be a modern fit-for-purpose building at our Kaimoana Rd depot and will help unleash our business efficiency and potential. We’re very grateful to have received support from the Provincial Growth fund to make it a reality. It’s another leap forward in the QRS journey where we invest in our most important asset, our people. They’re what sustains our ongoing growth.

As an employer – and a local business (not a large national just servicing the area) does this change your approach to how you do a job, how you get involved in the community and how you employ and upskill locals?

We operate in a remote rugged area often needing urgent, large-scale emergency slip responses. We’re the only company that can respond quickly and with the right kind of machinery and expertise from the Wairoa side. While Napier contractors work northwards, we’ll work southwards. It’s the same between Waiora and Gisborne. That emergency response capability means we’re resourced for large maintenance projects around Hawke’s Bay. With regard to employment, many tenders are now heavily weighted on how much staff training and development is associated with the work rather than on price. Contractors like QRS must show how new and existing staff, particularly Māori, will receive training and qualifications during the project. Eighty percent of QRS staff identify as Māori and last year QRS increased its training budget from $200,000 a year to $450,000 a year. This year we have a record 22 staff in apprenticeships.

As for community support, we believe a thriving community can exist only with the support of all who live and work in it. We love giving back to the community that supports our company and its staff. In recent times we’ve donated money and services to sports teams, science and technology education and events, the Wairoa A and P Show, and the Hawke’s Bay Rescue Helicopter Trust.

As the leader of QRS – what’s the most enjoyable part of your job?

The people. The people around me who have shared values and are prepared to make a difference. Understanding what your purpose is and making sure that it is bigger than oneself is important to me. I get to work with people I respect.  I get to work with people I like.  I also love working with our shareholder and owner Wairoa District Council. Without their support, energy and expertise, this ‘journey’ would not have happened.

How do you give back to a team that has done so well?

I can’t emphasise enough how important recognition is, recognition for a job well done, and in front of your peers, that’s something that can never be taken away. It was an incredible night for the staff that came to the award ceremony. The next week we brought the whole team together for a shared big breakfast. The Mayor came and we were able to share the success face-to-face with everyone and pay our respects to every staff member. We did an exercise that morning asking everyone to write on a piece of paper how they were feeling. Some staff wrote lengthy sentences about their pride, joy and delight. Others scrawled things like “Too Much! and “Kia Kaha!” To me that says we are heading in the right direction.

Where to now for regional economic development

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Economic Development in Hawke’s Bay is set for a big shake-up. However, Minister for Regional Development and local MP Hon. Stuart Nash is urging the region’s councils to have a new delivery model for economic development up and running faster than the proposed timeline of 12–18 months. He is also telling the councils they’ll need to contribute more money for it to be effective.

In February, all five councils across the region – Hawke’s Bay Regional Council, Napier City Council, Wairoa District Council, Hastings District Council and Central Hawke’s Bay District Council – agreed to complete a review by Giblin Group, at a cost of $40,000, which will further develop the preferred option of a Council Controlled Organisation (CCO). The proposed shake up and likely move to a CCO has brought to an end to Business Hawke’s Bay (BHB), an independent business-led economic delivery agency (EDA) but funded by councils. Following the decision by council’s to complete the review, BHB chair Stuart McLauchlan made the tough call to bring the organisation to an end after 11 years.

“The board has wrestled with this decision, as BHB has made a genuine and significant contribution to Hawke’s Bay over the past decade, delivering much needed services to the region’s business community and the wider economic development eco-system. “We are disappointed that we won’t be playing a part in the future economic development of our region and we’re sorry for the impact this decision will have on our people, who have given their all, and put up with considerable uncertainty for a long time.”

He says the board will now work collaboratively with Councils to try and preserve as much value and IP from BHB’s activities as possible; including its people and securing the future of the two Business Hubs, as well as BHB programmes serving start-ups, the food and fibre and hi-tech sectors, along with regional talent attraction and retention.  The date of the wind up will be determined as part of the transition arrangements to be negotiated with the Councils. BHB, which has also operated the shared Business Hub in Ahuriri since 2015, has received a total of $320,000 a year from the councils – just 3 percent of a total $10 million investment by councils. Hawke’s Bay Tourism receives 15.7 percent of the total funding.

The review recommended the disestablishment of BHB and the establishment of a CCO instead. The report also stated at least a further $1.6 million in funding was needed for it to be effective. It also recommended that the Business Hubs in Ahuriri and Hastings continue to be funded. Councils will now independently receive the final report before deciding how they will each participate and contribute to the delivery of economic development.

However, it’s likely that Hastings and Napier will be asked to stump up the most cash, with Wairoa and Central Hawke’s Bay ratepayers already expecting a significant rate increase.

In an exclusive interview with The Profit, Stuart Nash, who also holds the portfolios for small business and tourism, has put the acid on councils to have a new organisation structure, including the appointment of a new chief executive, within six months.

“Twelve to eighteen months is far too long. I can’t see why a new chief executive can’t be recruited within three months and a new organisational structure up and running within six. What this would require, of course, is for the councils to quickly agree on a new way forward and divert some of their current local economic development budget into a region-wide organisation.

“This is certainly what I would like to see as Minister. The region runs the risk of missing out (again) if we don’t have a highly functional EDA operating for 12 to 18 months.”   Stuart also believes the council’s current approach of operating their own economic development resources isn’t helpful and that a better coordinated approach is the best way forward.

“My understanding is that there is around four to five million dollars spent directly across the region by the various councils on economic development.

“As Minister of Regional Economic Development, I would like to see a more coordinated approach taken by councils across our region to economic development. So, it’s not so much a matter of money, but rather a strategic agreement – and then operational implementation – on the way forward that is of highest importance.   “The fact that around five million dollars is spent by the various councils on their own economic development strategies, and yet there is no regional EDA, is incredibly frustrating and counterproductive to regional economic growth.

“Let’s face it, if one of the Bay’s towns and/or cities does well, the whole region benefits.” Stuart also hopes that the councils consider the inclusion of the strongly performing entity Hawke’s Bay Tourism as part of the new economic development model. “Hawke’s Bay Tourism does a fantastic job and really stepped-up post-Covid to maximise the region’s tourism potential.   “There are around 15 EDA that also have the regional tourism organisation (RTO) incorporated within their operational structure.

“As minister for both Tourism and Economic Development, I have asked my officials to provide me with an analysis on the most optimal structure given the ability to compare the different models across the country.

“I am certainly not against the concept; in fact, I may well recommend this structure to the councils going forward.”

Stuart adds that Hawke’s Bay Tourism also has a high level of transparency and accountability back to the Hawke’s Bay Regional Council, whereas none of the councils have representation on the board of BHB and yet BHB demanded ratepayer money for operational funding.   “With regards to BHB, there was perhaps a disconnect between private sector and public sector understanding of the important role of key stakeholder accountability.”

Meanwhile, as this council consultation works its way through political decision-making and community consultation, Business Hawke’s Bay is likely to cease operating – either prior to or after the current funding ends in June – as well as leave much in limbo. Something that Minister Nash will keep a very close watch on.

 

All Blacks help kickstart new local business

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A small Hawke’s Bay business has been able to use some heavy weights influencers to help launch their business. Sensory Haven 4 Kids sells quality, affordable products that can provide comfort and security for both children and adults who are challenged by Sensory Processing Disorders, Anxiety, Fetal alcohol disorder, Attention Deficit Disorder (ADD), Dementia and Autism.

Business owners Lynair Bergman and Angela Howlett launched the business in February 2020 and became one of 100 businesses across New Zealand that got to use the marketing grunt of the All Blacks and ASB Bank to launch their products.

“We created the business because we have always had a passion for working with and supporting children and adults with sensory differences.

The products that were available on the market were hugely expensive which made them unreachable for many of the families we worked with. This was the driving factor to starting the business.”

Although some may think the timing of a launching a business wasn’t ideal, just business prior to a six week lockdown, thanks to ASB’s Borrow the All Blacks campaign, the idea of getting one of the world’s most recognisable brands, the All Blacks, helping out, is something that is usually well out of reach for small businesses.

“When the All Blacks competition came along  we were looking for ways to promote our business and thought what better way to promote ourselves than to have NZ’s sporting stars showcase what we have to offer.  “COVID lockdown allowed us the time to stop and think about our passion and what we wanted to do. We knew there was a need for reasonably priced products to support children and adults with sensory processing differences.

“We researched and sourced online quality affordable products and for the items we couldn’t access we found people within the community that helped us to have these products made locally. “Having the All Blacks involved was hugely exciting  and a real privilege to have them showcasing some of our products. It means further exposure for us and will draw attention to what our business has to offer.   The business is now kicking goals and they’re confident that they’ve got a product range that’s making a positive difference.

We know that our products will make a real difference in people’s lives as already we have had some fabulous reviews, and the positive changes they have made. “We would like to thank you ASB and the All Blacks very much for the opportunity. ASB reviewed nearly 2000 entries to select the 100 small to medium Kiwi businesses that will get a share of the bank’s New Zealand Rugby sponsorship through the ASB Borrow the All Blacks campaign. The bank’s executive general manager of Business Banking, Tim Deane, says the campaign was an innovative way the bank can lend a hand beyond the financial. “Borrow the All Blacks is our way of lending more than just money to hardworking SMEs who are the very backbone of New Zealand’s economy.

 

The business pivot

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While “Pandemic” was voted as the 2020 Word of the Year, you probably haven’t heard the word ‘Pivot’ used with quite so much frequency as you did last year. We’ve all heard amazing stories of companies that have taken up opportunities to shift their focus by changing their product offering, their target consumers, their delivery method, or the way they do business.

What is a business pivot?

In business, your pivot point is your vision, your mission statement, and your values. This is your strong foundation, what makes you and your business unique and something you do not want to change. If the core of your business does change, then you are not pivoting, you are jumping—which might be appropriate, but it is not pivoting. A change in strategy is your business pivot move. This is where you can make your changes and either move to survive or move to thrive and seize an opportunity to achieve your company’s vision. So, when you are taking some time to strategise for 2021, or before you rush headfirst into “business as usual” (whatever that is these days?), you could dust off that business plan, remind yourself of your purpose, and then start asking some questions.

Do I have to do it?

A strategic pivot can be used to create a shift in your business. From a defensive position – where the game has changed, you have to pivot in order to survive and we saw this commonly during and immediately following the 2020 Alert Level 4 lockdown. From an offensive position – the pivot helps you seize an opportunity to grow your business and this is what happened more regularly during the tail end of 2020 and we expect to see more of during 2021. Both shifts require you to pause, take stock, and assess your next move so that you can move forward deliberately and with purpose. Regardless of your circumstance, it is important that we take the time to acknowledge our regions resilience in the face of the unknown, commend our business owners for being dynamic in their operating structures and most importantly, take these hard learnt elements through with us into 2021. Should your business pivot in 2021?

The game has changed

Economic growth in New Zealand slowed to 1.8% over the March 2020 year, following revised 3.1% pa growth in 2019.

This March 2020 year captures only the very early stages of the Covid-19 pandemic. In this time, China was in lockdown, the New Zealand border was closed, and our trade activity suffered from global reactions to the pandemic. There is no denying that the game has changed massively for many businesses. For some, this happened instantly, especially for those in hospitality, tourism, and retail. However, for some, the changes are taking time to flow through. Post lockdown and operating under Alert Level 3, businesses had to quickly review the way that they conducted business and traded with their customers. Initially, reports suggested that 79% of workers in Hastings and 73% of those based in Napier would be able to operate under Level 3 restrictions. These figures are largely assumptive, in that those who would be largely affected by trading restrictions had already reviewed their modes of operation and changed and/or pivoted to meet strict Health & Safety guidelines in order to resume trading. Many businesses had projects lined up for the full 2020 year and they’ve successfully been able to catch up on lost time and work continuously.  What happens, however, now that work is finished? Is the work still coming through in the same way as previously?  Are your supplies still as readily available as they were in the past? Have you got employees that are working from home now? What change is your business facing?

What barriers are in your path, that are making you reassess your business operations?

There is opportunity

When looking for opportunity, it is important that you take a 360 degree view of what prospects you might have in order to reach your goal. Think of the companies that swiftly mobilised to manufacture masks or offer online delivery of their services— we saw a surge in the use of digital platforms which opened businesses up to new products, customers, and delivery methods. Operating a savvy online store or having a glossy e-commerce presence was no longer the territory of the big retail chains. Dynamic client communication and digital advertising strategies moved from the ‘maybe one day list’ to top of the priority list, in the hope of capturing a slice of the digital market which exploded almost overnight. It’s all about being open to opportunities – and taking the necessary time to look for and clearly identify them when they come along. You can ask yourself questions like: What solutions can you offer?  What unfulfilled needs can you meet? How else could you deliver your service? Who else could use your products or service? What assets have you got that could be repurposed? Who could you connect or collaborate with?  It is assessing how the environment has changed and what opportunities have arisen as a result. Can you take advantage of any of these opportunities?

3 ways business intelligence can accelerate your business

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Business intelligence (BI) and the ability to draw higher-level understandings from your data is fundamental for any organisation striving to be agile, future-proofed and ready for tomorrow.

Business intelligence, or BI, is how organisations collect, organise and contextualise data, often using BI reporting tools to provide data-driven insights at a glance and in easy to understand formats. BI refers to a wide range of data-related activities, including data mining, reporting, and querying. All organisations should seriously consider a Business Intelligence initiative to assist in a better understanding of business performance. Financial analysis and forecasts are still an essential part of business planning, but now only provide part of the picture. As companies expand and evolve, data can become more challenging to manage consistently. As a result, businesses regularly face obstacles that prevent them from performing a comprehensive analysis of their data to drive informed business decisions. Fortunately, there are new and powerful business tools doing away with these issues. There are plenty of business intelligence software and services available to help organisations gather and organise data more effectively, improve information access across their business, and successfully support more accurate, reliable results.

1. Simple and accessible insights

You don’t have to be a software engineer to start using BI for data analysis or understand how it presents information. BI applications make reading and submitting visual reports as straightforward or as detailed as you want it. The tools for building dashboards is usually drag-and-drop, so you can organise data with a few clicks and customise how it is presented. Beginners and experts can use BI tools to quickly explain increases or decreases in data charts by a simple click on an analyse button. The results are displayed in a window with simplified visualisation and an insightful description outlining what factors may have impacted your data. A great example is where data is gathered from machinery operating within a factory. The data can be integrated with a BI tool to identify trends of machinery performance over time.
A human operator can observe this to determine whether the production cycle is slowing; if so, they could work further to identify which machine requires service, dispatching a technician to perform maintenance before the problem results in downtime and a loss of productivity. Some BI tools can identify the underperforming machinery’s specific part, such as by determining that the motor is overheating.

2. Collate data from separate systems into one dashboard

BI tools can be used by anyone in your organisation and can be customised to their role and requirements. The tools can quickly create simplified visualisations of your most business-critical data that anyone can read and understand at a glance.
Why is any of this useful? A unified dashboard can act as a quick reference for any employee needing to access relevant data in a hurry, such as in a meeting. It also makes sharing insights easier if you collaborate remotely.

3. Using BI to identify past results, current performance, and for future predictions

Data modelling has made it possible to forecast trends and predict future outcomes relatively accurately with modern-day software. BI tools can provide great predictive analytics and forecasting features to explore reliable future results for your business. Using the analytics and forecasting tools in BI applications, you can run and compare different ‘What If’ scenarios on your information such as financial forecasts or industry-specific growth markets by adding a forecast to your chart without needing a data analyst’s services. BI Tools use built-in predictive forecasting models to automatically detect seasonality, next reporting period (week, month, year) and provide forecasting results. These models learn from historical data using statistical algorithms (often of the data mining or machine learning kind) to derive probable results and project them in an easy to understand graphical visualisation.

Conclusion:

Business intelligence is becoming an essential part of today’s business. When combined with business analytics, BI offers an ability to differentiate past from present, while predicting the future and responding accordingly. Businesses that implement BI into their operations will likely enhance their competitive edge and bottom line. They can stay across trends and key results optimising their processes based on data-driven insights and making future decisions based on more accurate predictions of what the future might hold.