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Welcome to the Kleinhardt Bulletin
Welcome to the second edition of the Kleinhardt Bulletin.
My thanks to all those who contacted us in regards to Issue One of the Kleinhardt Bulletin. Despite a technical glitch or two we had an overwhelmingly positive response from all, and we thank you for your support. We at Kleinhardt are finding that in the present tough trading environment, we are being increasingly called upon to draw on the foundation skills that led to the formation of the firm in 1993.
These were derived from the firm's strong financial and business diagnostic skills. They encompass financial modeling, an ability to determine the true trading position of an enterprise and analytical thinking matched with business skills to address weaknesses and improve performance. The overall economic climate is obviously having a local impact that is not necessarily disastrous, but is requiring a sharpening up of business management. Contact us today if you think your business or organisation could benefit from a little sharpening up! This is to the very core of what we do. Cam. |
News: Bill Calderwood Links Up With Kleinhardt. We are pleased to announce that Bill Calderwood's company "The Ayre Group" has become the latest affiliate of Kleinhardt, and will cooperate on a series of consultancy ventures. A renowned tourism professional in Asia Pacific, Bill has had a vast range of experience over 30 years. His extensive links to the region included appointments as, the recent interim CEO at Advance Cairns, the regions peak economic development body; the Managing Director of the Asian branch of Skyrail, and the CEO of Tourism Tropical North Queensland (TTNQ).
Bill also served as Deputy Managing Director of the Australian Tourist Commission, responsible for all international operations, and was involved in developing global branding and Olympics strategies. He headed up the Asia Pacific operations for major holiday companies as well as being head of Traveland, one of the largest travel organizations in Australia. Bill has also served on a variety of Asia Pacific tourism industry advisory boards including PATA, QTIC, and ITOA, as well as being involved in Australian state and federal reviews. This new agreement between Kleinhardt and The Ayre Group will serve to strengthen Kleinhardts position as the leading business and tourism consultancy in TNQ, and be a platform for expansion throughout the Asia Pacific region. |
How Come Nobody Noticed? By Cam CharltonDirector Businesses don't usually simply collapse overnight. A good business collapse takes time. That being so, the question has to be asked, how come nobody noticed that things were going off the rails, and how come nobody did anything to fix the problems before it was too late? Surely the role of good management is to be part of the solution rather than part of the problem? Perhaps the answer is as simple as the managers just didn't spot the signs and remained ignorant of what was truly happening. It is a truism that business demise is caused by management inadequacy. Whether we own or run a business; whether we are looking at investment or purchase; whether we are looking at employment or considering extending credit terms; there are many circumstances where being alert to some of the early warning signs of a business collapsing could be very useful.
Some of the more common warning signs of a failing business are: 1. Failure to articulate strategy: if the bosses can't make it clear, how can anyone understand how to implement it? 2. Loss of key customers. You know how hard it is to win and maintain key customers - losing one is a serious mistake. 3. Increasing tension with key stakeholders: whether it is credibility with the press, disenchantment with the unions, or disaffected staff, external mismanagement of key stakeholders is only the tip of the iceberg. 4. Failure to meet deadlines: if the company is not hitting external deadlines can you imagine what is happening internally? 5. Inability to prioritise: if the business can't choose the right priorities the wrong ones soon creep in. 6. Director and or senior manager churn, particularly within the CEO and CFO functions. Do they know something others don't? 7. Incomparable comparatives: if businesses cannot explain the numbers to the outside world how do you think they can explain the critical internal ones? 8. Continual explanations that a bad situation is "just another one-off" are excuses for poor planning and execution. 9. Excessive growth will invariably lead to difficulties as the weakest links can't go as fast as the strongest ones. 10. Superficial forecasting: this often covers up management failure and uncertainty. 11. Regular policy changes are a clear indicator of uncertainty and this breeds failure. 12. Downgrades can be the final sign that a business is in distress. Spotting one of these external warning signs in your own business could be an unlucky one-off: but a combination of any three or more is almost a guarantee of impending doom. All businesses operate in an environment that is dynamic; good business management needs to be constantly vigilant and equally dynamic in anticipating and responding to changes. There is an old saying that "the definition of insanity is continuing to do things exactly the same way and expecting the results to be different". Spot the signs and move to fix them. |
Featured Book Summary: The Carrot Principle How the Best Managers Use Recognition to Engage Their People, Retain Talent, and Accelerate Performance By Adrian Gostick and Chester Elton; Free Press, 2007
The Carrot Principle unveils the groundbreaking results of one of the most in-depth management studies ever undertaken. This study, involving 200,000 people over a ten-year monitoring period, shows that the central characteristic of the most successful managers is that they provide their employees with frequent and effective recognition.
Dramatically greater business results were obtained when managers offered constructive praise and meaningful rewards in ways that motivated employees to excel. Why You Need This Book In this book, authors Gostick and Elton show how the power of purpose-based recognition produces astonishing increases in operating results, however those are measured. Recognition in this sense, however, is recognition done right combined with four other core traits of effective leadership. Further, they show how great managers lead with carrots incentives and not sticks, and in doing so achieve higher productivity, engagement, retention and customer satisfaction. The Accelerator: How the Best Managers Deliver Extraordinary Results A missing ingredient In business, there are leaders who are visionaries those who see the untapped potential of their workforces and believe that it's possible to reach higher. They have been trying for years to experiment with their leadership style, have consulted mentors, read business books, and attended seminars, but have always fallen just short of getting their employees to reach their maximum potential. What they need is an accelerator the so-called missing ingredient that will bridge the gap between where their teams are now and where they can be. And in the workplace, there is no accelerator with more impact than purpose-based recognition. This, then, is the Carrot Principle the use of purpose-based recognition to spur company success. READ MORE |
Thinking of Buying a Business? Buying a business is a serious matter. It will certainly entail a financial investment as well as exposing you to some potentially serious risks. It will also entail a significant investment of your time. Sensible then to spend some time doing the homework and checking whether it is in fact all that it seems. Here are some useful pointers. The buying decision To determine if you should be purchasing a particular business you should be considering two key elements. Is the business worth the asking price and does the business have long term viability now, and if you were to take it over? It is recommended that you seek assistance from professionals such as accountants and solicitors to help you make the purchase decision. Is the Business Worth the Asking Price? Your success in buying an established business will depend on how wisely you choose and appraise each potential venture. By considering the following items, your accountant and business adviser can help you evaluate the potential of the business: · Profit and Loss from past 3-5 years · Balance Sheet from past 3-5 years · Tax returns from past 3-5 years · Analysis of sales by product line or service type (monthly for 1-2 years) · Stock on Hand · Asset Register listing all plant and equipment included in the sale · List of Debtors (Receivables) and Creditors (Payables) · Key personnel
Checklist for Long Term Business Viability There are many considerations to ensure you obtain value for money and that the previous business owners have given a true picture of the business potential. If you get positive answers to the following questions you may wish to proceed with the purchase and more detailed planning for the business. READ MORE |
My View: Experts in Tropical Expertise By Graham Poon Senior Consultant
 It's become plainly obvious that we need to diversify the Cairns economy. No I don't think we need oversize factories belching black smoke or to start digging for riches under Sheridan Street. Let's market our brainpower! I've always been impressed by how innovative and smart Australians can be. We are a country of relatively small population and without the mega-dollars of countries like the US. With limited resources, we have always needed to think better and come up with our own cost-effective and innovative solutions. I've had the absolute pleasure of working on a project funded through local member Desley Boyle's department, DTRDI, to seek business opportunities for businesses and organisations that have specialised knowledge in the environment field deriving from their work in typical conditions found in the North Queensland region. For quite a while, this has been called "Tropical Expertise." (What else??) It's been amazing to work with so much capability that in some cases is recognised internationally as leading edge, world-class knowledge. And this capability is sitting right in the middle of our region! We need to engage internationally and promote the export of our Tropical Expertise.
Most people are probably not aware that there are players in our community who are already supplying their advice overseas in tropical forestry management, water treatment, warm water marine management, tropical health, and community engagement amongst others. This can be expanded to include tourism, tropical building services, agriculture and so the list goes on and on. North Queensland is one of the few developed areas economically in the tropical Asia-Pacific region. We have that special knowledge that arises from the fact that we live and work in a tropical environment and understand what is needed by our close-by international neighbours. We understand the challenges of heat, humidity, distance, adverse weather and the need for innovation. From experience, this "Tropical Expertise" is a capability sought by many countries. It's a highly exportable commodity.
I've had many years assisting Australians export their services overseas and was delighted to do so. And in the current climate, it's a good story to say this is an export that is non-polluting, is high quality, well-priced, promotes our region and helps international engagement with our neighbours. Of course, this helps to expand our commercial base. Much of the Tropical expertise story is the "clean, green and helping the world" message. This branding may also be helpful to our core industry: tourism.
We should go for it! |
| Middle East Markets: Qatar About 45 minutes flight to the west of Dubai, the independent state of Qatar is quietly getting on with an ambitious development program. The name "Qatar" may ring a bell if you are a Moto GP/Casey Stoner fan, saw the Socceroos play Qatar in qualifying for the next World Cup, or watched events from the most recent Asian Games, held in the Qatar's capital (Doha) in late 2006.
Like most Gulf Arab countries, Qatar's economy is heavily energy based. The difference is that, in addition to oil, Qatar has huge gas reserves that some estimates suggest are sufficient to last for 300 years. Snapshot:
- Qatar is about the same size as the Australian Capital Territory
- Its population at the 2004 census was approx 800,000 - believed to be well over 1.0 million now
- Around three quarters of the population are expatriates.
- The majority of Qataris are under the age of 25
- Qatar's GDP for calendar 2007 was US$77 billion.
- Qatar has one of the highest GDP per capita figures in the world
- Construction and finance are two of the largest non-energy sectors in the economy
- In 2007 the number of Australians resident in Qatar was guesstimated at around 2000.
- There is an active Australia-New Zealand business group in Qatar (ANZBIQ)
- A wide range of products and services is in demand. For instance, at present there is substantial demand for proven construction technologies, techniques and products that make construction more efficient.
Kleinhardt's Michael Otago lived and worked in Qatar for 3 years until late 2007. He is well placed to make a realistic assessment of the potential in the Qatar market for your products and services, and to help you make contact with the right people to access the market. Contact Michael on (07) 3221 1661 or
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for further information. |
We hope you have enjoyed our second edition of the Kleinhardt Bulletin and we look foward to touching base with you again same time next month. All the best. Cheers Cam PS. If you would like to you can unsubscribe from future newsleters you can do so by clicking the SafeUnsubscribe link below. |
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| Quote of the day... "Persistent people begin their success where others end in failure."
Edward Eggleston |
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