Achieve real engagement through real communication

Essential to the toolbox of any effective leader is communication. It’s the key to achieving buy-in, reassuring employees during difficult times and engaging people with your message. Best-selling author and international speaker on business storytelling, Gabrielle Dolan, shares her thoughts on how authentic communication can help you create real engagement.

“I understand.” A short but powerful statement and one that leaders value highly. Steering the ship often entails being the bearer of either complex, confusing or challenging messages – never an easy task.

Today’s constantly shifting business environment doesn’t help either. At any given moment, companies face mergers, acquisitions, restructures or the roll-out of new systems on top of daily emails, phone calls and a bombardment of online information.

It’s no wonder engaging people with your message is an ongoing challenge. Not only do you need to cut through all the distractions but you also need to be clearly understood.

Good thing best-selling author and global thought-leader on authentic leadership, Gabrielle Dolan is here to help with three tips on how leaders can build engagement through real communication.

 

1. Ditch the jargon

According to Dolan real engagement results from using real words.

So why is the pull to use corporate jargon so inescapable? Dolan suspects it is because it’s a popular avoidance technique. “Company executives may refer to job losses as ‘downsizing’ or ‘rightsizing’.

“In December 2018, General Motors took this to a whole new level when they referred to the closure of five plants in the US and Canada — with a loss of up to 14,000 jobs — as being unallocated instead of saying words like ‘sack’, ‘closure’ or’ job losses’,” said Dolan.

Often though, jargon is simply a bad habit. “Many leaders use jargon as the default language, assuming everyone understands what that are saying. However, this is rarely the case.”

Whether you use it intentionally or not, jargon dramatically decreases employee engagement.

 

2. Avoid acronyms

Equally perplexing as jargon are acronyms. Dolan points out that acronyms enjoyed a steady rise in usage during World War II and the cold war between the US and the then Soviet Union. Its purpose: make it harder for the enemy to understand what was being communicated.

“It’s ironic that the business world loves to use a method of communication that was invented to make it harder to understand what was being said!”

Dolan adds, “Like jargon, acronyms can cause disconnection and confusion. In a worst-case scenario, overuse can result in complete misunderstanding of the message because for every acronym there are multiple interpretations.”

Avoid unnecessarily reducing phrases to acronyms where more engagement could result if you used the whole word instead.

 

3. Share stories

Real communication doesn’t just involve avoid bad habits, it also requires cultivating good ones. Dolan believes that sharing personal stories can have an extremely positive impact on engagement. “Research, conducted by the likes of neuroscientists, Paul Zak and Antonia Damasio, indicates that sharing stories not only increases the chances of creating an emotional connection to the message but it also strengthens the listener’s trust in what is being said and the individual saying it.”

In Dolan’s 15 years of teaching leaders the power of storytelling, strongly confirms that research. “Many leaders have testified that sharing a story increased audience understanding and engagement with the message.”

The best strategy in the world is nothing if employees and customers don’t engage with it. And how can employees and customers engage with something that they cannot understand? For those seeking to improve audience engagement – whether that’s with customers or employees – Dolan advises, “Think about how you can be more authentic in your communication to create real engagement.”

 

Gabrielle Dolan works with high-profile leaders, helping them to become better communicators using the art of storytelling. She is also the founder of Jargon Free Fridays. Her latest book Real Communication: How to be you and lead true, is published by Wiley.

How forming the right informal relationships impact a leader’s influence

In literature, film and television the hero might be credited with the victory, but often their decisions are coloured by an influencer in the background. In business, being an influential leader is not confined to those with a seat in the boardroom. Leaders outside senior management are in a prime position to influence change, innovation and decision-making – if they form the right informal relationships.

Within formal, structured hierarchies, each player must know their role and stick to it. Think teams or project groups – sticking to the structure is vital in these scenarios.

However, not all decisions are made within meetings and inside structured groups. Managers can also have their ideas heard and considered by building informal relationships.

Based on a study, casual coalitions may come about through chats at coffee shops, the office hallways or even while exercising together. These informal conversations can then help managers build a friendly relationship with senior leaders and other colleagues. That, in turn, allows managers to – in the best case, inform key decisions and at worst, provide senior leaders with an idea of how the organisation thinks and feels.

The aim is to develop more candid conversations and open up new lines of communication between key decision-makers and the rest of the business, not creating a channel for lobbying personal interests.

Informal relationships do more than just afford managers the ear of senior leaders. These coalitions can influence other key activities:

 

Informal relationships influence innovation

Research on innovation describes it as a social process since it is not limited to the conjuring up of ideas but also involves acceptance and implementation. This means that the innovator and the individual responsible for delivering it must agree.

Whether the innovative idea is implemented may therefore rely on the strength of the informal relationship of the parties involved. The better each other know and trust each other, the higher the likelihood of a successful outcome.

 

Informal relationships influence change

One of the most difficult situations to manage is change. People are wired to resist it yet it’s a recurring feature in the modern workplace. However, a study found that having a strong informal network can affect successful change management.

It concluded that those with strong informal networks became clear change agents regardless of their position in the organisation. The study also found that people who built their informal networks acted as a bridge between socially disconnected colleagues resulting in improved buy-in when change is rolled out.

Make more time for quick chats and start building healthy casual relationships with your leaders and colleagues. You never know how your influence can impact the rest of the business.

Sources (these articles are available to IML ANZ members via Leadership Direct):

The merits of peer learning for leaders

Leadership is a transformative process – once you’ve become a people manager your thinking around leadership changes. As you progress every day, many factors influence how you learn, and suddenly that is no longer an activity reserved only for the classroom. Not surprisingly, the best way to learn could be through your peers.

 

The way we learn is changing

A recent study reveals that 70% of workers learn from their peers and only 21% rely on what their L&D or HR departments offer as learning options.

Because leaders bring with them a unique set of skills, knowledge and experiences, the advantages of learning from peers are further magnified when applied to this group. According to organisational development expert and facilitator of IML ANZ’s Intentional Leadership Foundations program, Kerry Irwin, sharing these aspects amongst peers enriches the learning experience.

Irwin explains, “The theory and practice delivered in a peer learning program is brought to life by the participants’ past experiences. It embeds the learnings. So whilst the theory may fade in the mind of participants, the examples shared by others in the room means the learnings are brought further to life and they stick.”

 

Diversity of thought is better

Several perspectives are also better than one. Irwin strongly believes that leaders benefit from the wide experience and views brought into the room by a cohort of peers.

“A teacher-led or trainer-led approach limits the participants to only one view. Either that of the trainer or the organisation who designed the program.”

Irwin adds that effective peer learning does not require a trainer or a teacher. “You need a facilitator who understands and encourages the flow of discussion, which brings about fruitful learning,” she said.

 

Not a silver bullet

Of course, peer learning should be just one element of the way leaders learn. Irwin points out that coaching is best conducted one-on-one and when it comes to technical learning, courses that are focused on the individual’s skills gap, and therefore the need, is best.

Adult learning delivery should vary according to the individual’s personal learning preference, and this is a key consideration as to whether peer learning is the right choice. “Some may learn better as an individual, for example online, if group work makes them anxious therefore hurting their learning experience”.

 

Learning from and with like-minded individuals has its merits when contrasted to the typical classroom-based, teacher- or trainer-led approach. Mainly when peer learning is an element of a leadership development program, participants have strong shared motivation: learning to be better leaders. Irwin also states the importance of being open to others’ views and experience. She concludes, “If they approach the session with a curious mindset – even better!”

Why do organisations need learning leaders?

Have you ever noticed that the difference between the words ‘leader’ and ‘learner’ are merely two letters? Perhaps it’s because the best leaders are ones who constantly seek to learn and encourage the same of others. We unpack why the learning leader is the best type in today’s modern business world.

Organisations know that good leaders never stop seeking development. According to IML ANZ’s latest research on employer and graduate expectations around leadership skills development, 72% of employers believe they need leadership skills development in their organisation.

In addition, the 2019 National Salary Survey found that one of the top human capital challenges for organisations is the need to develop effective leaders (44%). Interestingly, survey respondents (52%) also rated this as a crucial value-add to organisations if managed correctly.

Clearly, organisations will then seek leaders who share their view on the importance of leadership development. For the individual, that starts with their attitude towards the importance of learning.

Another benefit of having a leader who continually seeks to learn is that they will encourage those around them to do the same.

If you’d like to become a learning leader, here are some simple tips:

 

View learning as an unending process

Progress in technology, education and society mean that what we knew a few years ago may already be outdated. The time between when we acquire knowledge and their ‘use-by date’ is shrinking.

Leaders therefore, must look at every opportunity to learn and to update their expertise. When you’re the person in charge of organisational changes, the strategy, business growth and employee engagement, you cannot afford to get left behind.

 

Stop thinking that learning equals courses

As humans, we like to evaluate ourselves based on measurable, tangible and finite outcomes. Part of the appeal of attending a class is that participants normally come away with a piece of paper that tells them they’ve ‘learned’ about a particular topic, skill or capability.

Learning can come from a variety of contexts. Leaders can gain new knowledge from trialling a new process for instance. Shift the focus from the ‘outcome’ to the ‘journey’ and the lessons won’t be confined to just whether the process resulted in a win or loss.

 

Learn from your people

In the relentless cadence of managing and leading the business, it can be easy for leaders to focus only on their individual learnings. However, reflection is an excellent opportunity to demonstrate that you are a learning leader.

Involve your people when reflecting on outcomes, processes and areas of improvement for the team and the business. Each person has a unique way of viewing things and no two people will ever come up with exactly the same idea – no matter how similar they think and behave. By taking in the perspectives of others, you’ll open yourself up to experiences and ideas that would have simply been impossible for you to learn about.

Ten ways to make an impact from the middle

By Lisa Calautti

 

While chief executives and their C-suite colleagues often hit the headlines in the business media, the vast majority of managers do not actually operate at that high-profile level. Most are ‘middle managers’ who sit between senior management and the wider workforce. This silent majority can sometimes struggle to make their voices heard in their organisations, but it’s important for everyone that they find a way.

Sam Bell FIML, IML ANZ’s Corporate Services and Research General Manager, says that influential middle managers are invaluable because they help secure the willing cooperation of staff, assist in garnering support from colleagues and earn a hearing for their views and opinions among bosses and senior leaders. Influential middle managers are often the catalyst for positive change in a business – securing approval for new ideas, proposals, and initiatives.

For those middle managers seeking to develop their influencing skills, Bell shares the following tips:

 

1. BE CLEAR ABOUT YOUR AIMS AND OBJECTIVES

Influencing is about getting a hearing for your own ideas and perspectives, about playing a role in shaping agendas and strategies, promoting change in your organisation and getting approval for new initiatives and projects. You will be unable to achieve this, without a clear understanding of your exact aims and objectives. Keep up to date with the current position of your organisation and the market or sector in which it operates.

 

2. UNDERSTAND ORGANISATIONAL DYNAMICS

Gain an understanding of your organisation’s culture. Remain alert to the unwritten rules of how things are done and be aware of the dynamics of power and authority within your team, your department and the organisation. Ask yourself: Who are the prime movers and shakers? Who has a reputation for being able to get things done?

 

3. UNDERSTAND WHAT MAKES PEOPLE TICK

If you are to influence anyone, whether it is those you manage, colleagues in other departments or senior managers, you need to get to know them and to understand what motivates them and what their personal and professional goals are. Pay attention to body language, tone of voice and facial expressions.

 

4. BUILD RELATIONSHIPS

Network widely across all areas and levels of your organisation, so that people know who you are, what you do and what you stand for. Take an interest in people and invest time and effort in developing relationships.

 

5. FORM ALLIANCES

To develop real influence, you will need to go beyond a loose network of contacts. Build alliances and coalitions of supporters based on common interests and values. Weigh up who is most likely to support you and who will be the most valuable partners.

 

6. PLAN AHEAD

It is vital to be proactive and plan ahead if you are seeking support for a particular course of action. Think carefully about what you want to achieve, whose support you need to gain, when is the best time to introduce your ideas and what is the best way to do it.

 

7. HONE YOUR COMMUNICATION SKILLS

Communication skills play a crucial role in influencing. Active listening and questioning skills will help you to read other people and to pick up on subtle verbal and non-verbal cues as to what they really think.

 

8. LEARN TO CONTROL YOUR EMOTIONS

Your enthusiasm and even passion for your ideas can be a powerful force. Influencers need to be assertive – to express their views confidently, to make reasonable requests of others and to set boundaries. On occasion, you will need to stand your ground and rebut criticism. But don’t allow assertiveness to degenerate into aggressive behaviour.

 

9. LEARN FROM YOUR MISTAKES

Don’t become discouraged if your influencing tactics are not always successful. Recognise that you won’t win every battle and resolve to learn from your failures. When things go wrong, try to identify the reasons and consider what you could have done differently and what might work better next time.

 

10. DON’T LOSE YOUR MORAL COMPASS

While being influential does require single-mindedness and a degree of calculation in working towards your goals, it’s important not to lose sight of your personal values. Positive ethical influencers seek to demonstrate the benefits of their ideas, not just for themselves and their position but for their colleagues, the wider organisation and society in general.

ACCELERATE YOUR LEADERSHIP SKILLS

Leading and influencing from the middle of the management hierarchy comes with pressures from above, below and laterally. IML ANZ’s Intentional Leadership Accelerate Program equips managers with the skills required in this crucial leadership position.

The program blends facilitated learning, online study, practical workplace projects, leadership coaching, mentoring and diagnostic reports. See how Accelerate delivers development differently here.

 

The business development journey for B2B leaders

By Adrienne McLean MIML

 

Understanding the business building journey is vital for B2B leaders whether they are the business owner or involved in sales and marketing. The more the whole process is understood, the better it is for everyone involved in helping the business grow.

However, there can be quite a perspective gap between the marketing team and the sales team. Primarily because marketing sees the process in a different way to the sales team. When understanding the business development process and their part to play, the truth is that they are closely dependent on each other. In fact, they are interdependent on each other for making the sale happen.

The three most significant, umbrella parts to understand about the process are:

 

1. Setting the stage

Marketing sets the stage for the business. The truth is that the marketing doesn’t get the clients, it is what happens next that books the business. The marketing defines how to introduce products, creates visibility and awareness of the products and importantly keeps the product front of mind for when prospects are ready to buy.

The role of marketing is to build a strong foundation for the identity of the product, the brand and the connection between the brand and the target market. Clearly detailing the problems that the target market will be facing and then detailing the solutions and the benefits that the product brings.

Marketing is an overriding title to cover:

  1. Lead generation
  2. Setting a fundamental understanding of products and services
  3. How the business builds trust and credibility
  4. How the business stays “front of mind”
  5. Define the channels to distribute messages
  6. Define the strategies to raise awareness of the business

 

2. Building credibility

This is an often-overlooked section when it comes to building the business. Professionals must remember that the right mindset has a major part to play in creating strategy and seeing the bigger picture. How open minded are you to change? How ambitious are you with thinking through bold plans for growth? How confident are you to action those plans? These are leadership and management skills can influence business success.

Because personal selling is about mindset and personal promotion, it can be uncomfortable for some. Service professionals are excellent at selling their product, but when it comes to promoting themselves, it’s another matter.

Skills like presenting, speaking to groups, communicating, speaking to camera and creating video, speaking on radio, creating podcasts, speaking with clients and prospects on the phone – all these have an impact when it comes to connecting and promoting yourself and your brand or organisation.

For leaders, developing these skills in for both themselves and their staff will help the business grow. These skills are learnt skills and building their employee’s confidence in these skills will deliver huge benefits. Developing communication and leadership skills empowers individuals, giving them life skills and building their confidence.

 

3. Closing the sale

Now, this is the stage of the business development process where the sales team takes the prospect from the building of trust and credibility to closing the sale. The marketing team has set the stage then hands over the prospect to the sales team to get the sale over the line.

To do this, the sales team will need to find out:

  • What are the problems they are experiencing?
  • What are their desired outcomes?
  • What products or services can the business offer to help them?

 

Only when the sales team can respond positively to these questions do they stand a chance of getting the prospect sold. This will require regular communication to ascertain whether your organisation can provide the suitable solution.
In the B2B business world, the sales team coordinate with marketing who hold a list of prospects in the pipeline. By presenting a credible persona and connecting with the prospects, the sales team could get the sale across the line.

Ideally, for the business development system to work, the marketing and sales teams are integrated working together to build the business. For B2B business leaders, building the connections with the marketing and sales teams is ideal for a coordinated approach with the vision focused on growing the business.

Adrienne McLean MIML is the founder and principal marketing and speaking coach for The Speaker’s Practice – which runs workshops, coaching and events that help professionals to improve their marketing and communications.

IML ANZ Members in Sydney are invited to join Adrienne at the Professional Services Marketing Conference on August 17th, 2019. This information conference takes delegates on the business development journey starting with marketing and digital marketing, going through to sales topics with mindset topics covered throughout the day. IML ANZ Members who book by July 17th enjoy a 15% discount when they use the code IMLEB. To book or find out more, visit www.professional-services-marketing-conference.com.

Champions of Change

By Anthony O’Brien

Our leadership community is privileged to have two leaders who exemplify excellence and integrity and who encourage the highest ethical standards: noted humanitarian Professor Shirley Randell AO FIML and Dr Donna Odegaard AM, CEO of Aboriginal Broadcasting Australia. They share some inspiring leadership insights with Leadership Matters.

Dr Donna Odegaard AMTHEIR LONG ROADS TO LEADERSHIP

A long-time public servant including stints in the Department of the Prime Minister and the Public Service Commission, Randell was one of Australia’s 100 Inaugural Women of Influence in 2012. She is also a big supporter of International Women’s Day, which is fast approaching on 8 March. Prior to her public service, Randell taught Aboriginal children in remote schools in Western Australia before moving to Papua New Guinea to lecture at teachers’ colleges operated by the Uniting Church.

After her first retirement, Randell owned and operated consultancy businesses in Sydney, Rwanda, and Vanuatu. She also worked in a consulting role in Bangladesh in 2004–5 and 2014–15.

Darwin-based Odegaard is the founder and CEO of Darwin-based Aboriginal Broadcasting Australia, which is seeking to establish free-to-air television operations in every capital city. Currently, her unique television licences are regulated to broadcast nationally. As a result, the busy Odegaard is collecting frequent flyer miles taking her vision for her businesses to boardrooms across Australia.

It’s an impressive result for Odegaard who started her business career selling handmade clothes to support her family. She is recognised as one of Darwin’s most respected businesswomen and has strong views on what it takes to be a leader and manager today. Odegaard also has robust opinions about how business leadership has changed for women since the 1970s. She explains, “I’ve seen some massive changes in the past 30 years for women leaders, especially Indigenous women. We were breaking some ground in the 1970s but mostly in the areas of activism, politics, education and the arts.

“Today, young women are trailblazing in areas such as business, economics or they are entrepreneurial and are looking at global markets.”

Professor Shirley Randell AOWOMEN HAVE COME A LONG WAY

There were very few women in leadership roles when Randell joined the Commonwealth workforce in the mid-1960s. “I’m pleased to see that we now have many more women leaders,” says Randell who cites former Victorian Premier Joan Kirner and philosopher Jean Blackburn as inspirational female leaders.

“There’s more individual support for women today from other women, and we have more men who are fighting for women’s rights. In regard to whether we are better off, of course, we are.”

However, there is no reason for complacency, counselled Randell, “because, in reality, for example, we’re still a tiny percentage of engineers, surgeons, and parliamentarians in the Liberal/National party coalition.”

Odegaard, who earned her PhD from NSW’s University of Newcastle, agrees and even as recently as the early 2000s discovered there were still gender roadblocks for female entrepreneurs. “I very carefully ventured into the media and had a lot of pushback from males in the industry. But I just kept quietly chipping away to try and get more of a voice not just for women but for Indigenous people.”

Randell warns that when female leaders earn some successes, there can be a backlash. “When countries, for example, are taken over by fundamentalism, which we are now seeing, women’s rights are one of the first things to go.”

MEN’S VIEWS ARE CHANGING TOO

With a working résumé stretching over 60 years, Randell says she took her first significant leadership role in 1984 when she was appointed Director of Programs ACT Schools Authority in Canberra. She then honed her management skills when she was named CEO of the Council of Adult Education, in Melbourne from 1991–94. In this challenging role, Randell was responsible for 1,000 teachers and 50,000 students. When she first retired in 1996, she was CEO of the City of Whitehorse, the second-largest city in Victoria.

Men’s view of leadership had to change too over the past 30–40 years to help open doors for female leaders, opines Randell. “Quotas for women in leadership roles are important. Men had to change as well, and we’ve had these champions for change in Australia who are doing tremendous work in supporting women such as Qantas CEO Alan Joyce. Things are changing to help us achieve gender parity.”

Having more women on public and private sector boards is a must to promote gender diversity, argues Randell. “On those boards and in those executive suites where men are welcoming women, the fact that women are there is a considerable incentive to other people. However, in my opinion, quotas need to be there to achieve balanced leadership across the boards.

“We haven’t yet done this with business, but Elizabeth Proust who has just retired as Chair of the Australian Institute of Company Directors has been talking publicly about the importance of targets if we want to change the position of women on business boards.”

Randell recognises the success of diversity targets in the European Union and the United Kingdom to illustrate the effectiveness of getting more women and minorities onto boards. “We need to do the same in Australia. However, for this to be effectual, you need men welcoming women.”

ADVICE FOR YOUNG LEADERS

Randell advises young leaders to pursue the routine actions involved in climbing the leadership ladder such as:

  • Working hard
  • Completing academic qualifications
  • Getting published
  • Attending conferences

She adds, “When you make mistakes you don’t stop.

“I’m a great believer that in every setback there’s an opportunity. That’s happened to me. I’ve had disappointments in my career, but there’s always a silver lining. In every loss, there’s always an opportunity.”

Odegaard advises aspiring women leaders to harness the power of social media. “Through social media women can connect to other support groups, and to networks such as IML ANZ.

“Those of us who were doing business in the 1970s, 1980s and 1990s were doing it basically on the smell of an oily rag. We were doing it out of our homes, we were poor, but we had a lot of creativity, but back then we didn’t connect as a community of women because we just didn’t do that. You couldn’t even think about doing things like that.”

The roles of women in business are changing, continues Odegaard, who is confident the younger brigade “are strong, confident and are sort of quietly changing things”. The television executive is fond of asking young aspiring female leaders, “What do you want to do?”

“If they have dreams and aspirations, I advise young leaders to stick close to good people and networks such as IML ANZ.

“The Institute can also provide valuable mentoring services, and certainly good advice and experience. Get as much out of it as you possibly can.”

Resilient Porters seizes its opportunity

By Lachlan Colquhoun

 

If only he could know it, Charles Porter would be delighted that a sixth generation of his family is now working in the hardware stores which bear his name in Mackay.

Porter’s business was born of necessity and then opportunity. He arrived in the North Queensland town in the early 1880s to build a hotel and found there were virtually no building products available.

So he transported what he needed from Europe, Brisbane and Sydney by boat, and once the hotel was built he stayed behind and founded the Porter’s hardware supply business.

135 years later, Porters Hardware and Building Supplies is a fixture in Mackay but despite its longevity and strong local roots, it hasn’t always been easy for the business to thrive.

 

A BOOMING SECTOR

In fact, as Managing Director Gavan Porter (Senior) Corporate member of IML ANZ puts it, the business is only now coming out of a “perfect storm” of a volatile boom and bust cycle which severely tested its resilience.

“We’ve been through two World Wars, the Great Depression and credit squeezes, but the past four years we had a big contraction with the resource sector downturn. It was brutal,” says Gavan (Senior).

“Most of the contractions have historically been 12 to 18 months. This one went on for four years.”

However, back in the early 2000s Mackay was growing rapidly as a service centre for the resources industry. Multinational companies set up business in the city for the first time and the population increased sharply.

It created a building boom that was good news for the Porter business, where trade comprises 80% of turnover, including the company’s manufacturing divisions, which fabricate aluminium and glass products as well as roof trusses and wall frames.

The boom in Mackay also attracted the attention of bigger national hardware players. Woolworths’ failed Masters chain opened up a store, and market leader Bunnings added a second Mackay store in response.

Porters were also not the only independent operator. They had for decades been in competition with another Mackay family, the Woodmans, who had allied themselves with the Mitre 10 buying and marketing group and had a strong retail and trade presence.

“We went from one ‘big box’ store operated by Bunnings to three in total including Masters, and Woodmans had the advantage of being part of Mitre 10 with their resources,” says Gavan Porter (Junior) CMgr AFIML, who is the company’s CFO.

“There might have been room for everyone during this extraordinary growth period, but then the downturn hit.”

 

SURVIVING THE DOWNTURN

As the economy ground to a halt, the mines made employment cuts and 9,000 jobs were lost across the resources sector supply chain.

With people now leaving Mackay to find work elsewhere, new home building approvals slumped by 90%.

“This was all very new to us, because Mackay had always been a steady growth sugar and coal town,” says Gavan (Senior).

“But after all that growth, the market collapsed, and Mackay collapsed with it. It went off a cliff.”

For the first time, Porters was forced to downsize and initiate staff redundancies; a difficult process for a company where the family ethos often extended to employees.

Out of the downturn, however, an opportunity presented itself.

 

ENDING THE FAMILY FEUD

“With our external advisors we created a strategic plan in 2015 and one of the parts of that was the option of regional consolidation,” says Gavan (Junior).

“In the downturn it was clear that there were too many players in the market and the only way to survive was consolidation.”

A conversation was “struck up” with the Woodman family about a “way forward” for both family businesses, and an amicable deal was made for the Woodmans to exit the hardware supply market in Mackay and sell their retail stores to the Porters.

“It was great for two such staunch independent competitors, who had been competing in the same market against each other for decades, to come to an agreement,” says Gavan (Senior).

“It was clear that the market was very tough and there had to be an exit of one of us and they agreed to exit.”

The deal worked for both companies, and families.

The Woodmans kept other manufacturing businesses in Mackay such as aluminium and glass fabrication, roofing, and roof truss and wall frame manufacturing, where they still compete with the Porters.

That deal gave the Porters a network of stores that spanned not only Mackay and its surrounds but also extended to the Whitsunday region.

The acquisition gave Porters more stores and removed a longstanding competitor, but also introduced them to a new, and powerful, partner in the Mitre 10 group. A new licensing agreement was reached, and the company now trades as Porter’s Mitre 10.

“Mitre 10 was also a good move for us,” says Gavan (Senior). “They are a strong buying group and we needed to buy better to compete against bigger players.”

 

STRIKING UP A GOOD PARTNERSHIP

Just as timing played a role in the severity of the downturn, so it worked in the Porter’s favour in terms of Mitre 10’s own competitive position.

With the demise of Masters, Woolworths also put its wholesale hardware distribution business up for sale, and it was purchased by Mitre 10.

The move transformed the national market and made Mitre 10 Australia’s second biggest player in the hardware sector next to Bunnings.

Such was the timing that Porters went from being an independent player in an overcrowded market to being a strong second placed rival to Bunnings, with the advantage of being able to leverage Mitre 10’s brand name, buying power and marketing.

“They are the strongest partner you can have if you are an independent owner,” says Gavan (Senior). “We have always been strong in trade, but Mitre 10 is a powerhouse brand which has helped us continue to reach a retail target audience.

“And going forward we are able to use some of their benchmarking capabilities to understand where we are compared with our peers, and we’ve already been out to have a look at some of the bigger stores in the group, and this is something they encourage.”

Eight months after the deal, the acquisition is still being bedded down just as the market conditions are showing signs of improvement.

To prepare for the expansion, the Porters created an implementation plan across eight different areas of the business, from facilities management to IT and HR. Focus groups of employees, the number of which has increased by 25% to 250 across the group, were held to review and reset the firm’s culture.

The result has been the definition of five key criteria which will be ingredients of the culture moving forward: focusing on performance delivery, being driven by customer outcomes, valuing relationships, keeping everyone safe, and having fun at work. “We’ve got a way to go but we believe we are on the right track,” says Gavan (Senior).

“We’ve broadened our base, increased our trade and retail presence, and expanded our geographic footprint.

“As the economy improves we believe this will give us a solid platform.”

 

BUSINESS WITH A FAMILY FLAVOUR

The resilience of the Porter’s business, says Gavan Porter (Senior), has come from the company’s financial and management discipline which has helped it adapt to change.

A key to this has been to adopt many public company structures and processes into the way things are done, including the longstanding addition of independent directors onto the company board.

“It was my father who initiated this when he was running the company,” says Gavan (Senior).

“He understood that it had to be about the business, and not the family, and for that we needed that outside and independent perspective.”

Gavan (Senior) has been a member of the Australian Institute of Company Directors for many years, and many AICD practices are implemented at board level to create a structure and a discipline.

The company has a relationship with a firm of advisors, with extensive experience in larger family businesses, who played a significant role in creating the strategic plan which identified the consolidation opportunity and led to the Woodman’s acquisition.

“We have all the structures of a listed public company, but with a family flavour,” says Gavan (Senior).

The Porters joined the Institute of Managers and Leaders Australia and New Zealand in 1956, as they sought to keep up with changes and trends to incorporate into their business.

Gavan (Junior) has been on the local IML ANZ committee for the past five years and has pursued a qualification as a Chartered Manager. “Leadership and management is very important to me, and we have such a large staff now that I find it invaluable to share current ideas and thinking,” he says.

Kicking Goals On and Off the Field

By Lisa Calautti

 

Sport, community and professional life have always been intrinsically linked for Canberra-based Dixon Advisory associate director Genevieve Bond AFIML.

As the youngest of five children who all loved sport, some of Bond’s earliest memories were watching her siblings from the sidelines, inspiring her to have a go at most sports from a young age. As a teen she played touch footy at state level and as the famous adage goes – the rest is history. “I have just never stopped playing,” she says. “There is something about sport, it’s more than just the physical workout. It’s an opportunity to de-stress and provides a strong sense of community.”

Sport has played a significant role in Bond’s life, personally and professionally. “Most of my closest friends are those who I have met through sport, I even met my husband on the touch football field,” she says.

Professionally, experiences in sport have taught her several important life lessons – many of which have translated to the workplace. “Every person on the field has an important role to play,” she concludes. “And this absolutely relates to business, when everyone works together to achieve something, there’s a shared sense of knowing that your contribution matters.”

As if the demands of touch footy weren’t enough, Bond started playing Women’s AFL as part of Canberra club team, the Belconnen Magpies. For a long time, Bond balanced her career and love for sport; progressing professionally, playing in representative teams across both sports; and still managing to find time to volunteer across both codes. “It’s important to give back, it ensures longevity for these local clubs – who can then have a positive impact on the lives of others,” she says. Now a mum of three children, Bond has scaled back her sporting commitments, but continues to play social touch footy weekly.

It was Bond’s AFL connections that led her to becoming a member of the GIANT Hearts Canberra, a women’s business coterie linked to the GWS Giants. “It’s a group of senior women in business affiliated with the sport, and it allows us to share our love for the game and benefit from each other’s support and networks. It has formed the loveliest little community bringing women together from all disciplines; from public through to private,” Bond says.

The camaraderie between the women has been rewarding on both a personal and a professional level, helping Bond develop as a person and as a leader in her career.

“I think for me my sporting connections and experiences have been incredibly valuable from a professional perspective. I’m a strong believer that you as an individual are responsible for your development, so it’s important to do things in your own time that help you improve professionally and personally. That’s what I have always done through sport, through memberships such as IML ANZ and now through the GIANT Hearts.”

Genevieve will be speaking on the impact of financial wellness on individuals in the workplace. IML ANZ Members enjoy free entry to this event to be held in Canberra on Tuesday, 14th May. Book now to attend a Focusing on Financial Wellness session in Canberra, Sydney or Adelaide.