JUNE BULLETIN

Shane Kelly's approach to sustainability, business briefs & more

CEO's Report

In top news this month, the election is over and in Canberra we have a new government – hopefully they will be business-friendly. At the ILF, we held our annual information night and culture training afternoon in May, both of which generated overwhelmingly positive feedback. A total of  41 grant applications were received by the 31 May deadline. Although numbers are down on last year, the quality of applicants is very high and I expect the selection panel will have a hard task ahead of it.

Bulletin enhancements

As we become increasingly time-poor, we've made the editorial decision to cut back on some of the content in the ILF Bulletin. Rather than summarising upcoming events and must-read articles in my report, you'll find this content later in the bulletin. We've also created a new webpage to feature our Scholar in the Spotlight; now you can read a teaser in the bulletin and visit the website for the full story. If you have other suggestions (content, layout, frequency), please email me as we would be grateful for your feedback.

Out and about

Unfortunately my diary was interrupted by the most severe dose of Flu I've ever experienced. I did manage to attend:

• a breakfast event where Patrick Power enthralled the crowd. One of a series of such events facilitated by the ILF since 2014, the feedback was that Patrick was the best speaker so far. That is high praise indeed, considering the quality of speakers in the past.
• an ESG seminar at KPMG. The lessons were that companies that adopt ESG principles out-perform their competitors, and that younger people prefer to work in an ESG-responsive environment and buy from ESG-friendly suppliers. It was very informative but not as good as our seminar in March!
• the Fast Movers Awards breakfast at the Adelaide Oval as a guest of Emilio De Stefano, who ranked 12 out of 25. Numerous Scholars received awards and mentions (read more below). Grant applicants were well represented in the winners' list and I could not resist the opportunity to place a brochure in the hands of several winners. Thanks Emilio for inviting me and helping to spread the ILF word.
• the Family Business SA Annual Conference as a guest of Family Business Australia. There was a great line up of speakers including Brenton Miels (CEO, Stratco), Ed Peter (Chairman, Duxton), Dale Ryan (Partner, Grant Thornton) and Anthony and Sally Paech (Beerenberg). There was a very strong ILF flavour, with the day opened by FBA SA Regional Director Brett Miller (ILF2019) and sessions facilitated by Penni Donato (ILF2019), Zoe Detmold (ILF2016) and Corinna Wright (ILF2012). The Family Business Excellence Award for Medium Business went to Kelly Engineering (Shane Kelly, ILF2013), featuring in this month's Scholar in the Spotlight.  My top six takeaways were:

1. An external CEO/MD leader is preferred in a family business when it is time to sell or revamp the business.
2. Hotels do well when interest rates rise.
3. Successful business partners should have different and complimentary skills, but they must be culturally-aligned.
4. Choosing a successor in a family business requires significant planning and this should be done well in advance. However, family business owners often put more effort into planning a two-week vacation than into planning the future leadership and ownership of their business.
5. There are many facets to transferring ownership in a family business; missing just one step can be costly. Seeking professional advice is good value for money.    
6. To grow a business you have to give up control incrementally.

I awarded top marks to Brett for a humorous and focused introduction and for his exceptional dress sense, complete with an ILF pin (as shown).

Lastly, Suzi and I headed to the Entertainment Centre to scout out a location for our awards night. The room is great, costs are comparable with the Wine Centre and they offer free onsite parking, so save the date for 26 September!

Beyond business

May has been a health month; here are the (not-so-high) highlights:

• Hit for six by the Flu, I slept 15 hours a night for two weeks, and sometimes needed an afternoon or morning nap as well! Lisa caught the same Flu and lost her voice for two weeks, which played havoc on her WEA Spanish classes.
• Our son Marcus and his family all caught Covid and were laid low for three days. He found it ironic that he had to isolate for seven days while Lisa and I were much sicker but free to go out as we pleased. 
• I received “implant buttons” for two teeth, expertly fitted by Dr Greg Miller (ILF2021) at the new Harley Clinic in North Adelaide. The clinic is in a beautifully-restored mansion and well worth a look. Thanks Greg – it's easy to see why you were voted Adelaide’s best dentist in The Advertiser last year.

On the road to recovery I managed to do a few things, namely:

• I attended a Governance Institute breakfast to plan the next Public Sector Governance Forum. I've been assisting the Adelaide event for more than two decades and it has always attracted the highest attendees in the nation while other states dwindled. As a result there is only one national event each year and it is run from Adelaide, with attendance online and in-person.  
• I received an Australia Day award presented at Edinburgh Air Force Base by the Assistant Commander Joint Capabilities Group. The awards recognise exceptional performance in special projects or core duties. In my case the award recognised my work with the Australian Defence Force Joint Military Police Unit. The certificate, with its informed and thoughtful words, was a wonderful surprise but the feeling when the medal was presented was overwhelming.

• I enjoyed lunch with friends at Stella restaurant at Henley Square on a very wet Friday. We talked mostly rubbish, spent some time catching up on family news and managed to fit in some footy talk. One of the friends bought a quarter of a bottle of 1939 Para Liqueur and it was delicious.
• Lisa and I went to dinner with another couple at our good friends' newly-renovated house on a cold Saturday night. Thanks to our brilliant hosts Grant and Emily Martinella, we enjoyed a wonderful evening filled with great food, excellent wine and fabulous music.
• Our son-in-law, Peter, turned 40 during the month and celebrated on the Gold Coast with our daughter Allison, Jill and Noah.  
• We took Noah and Jill to the netball grand final at a packed Entertainment Centre. The Thunderbirds played well and led for most of the game but the Melbourne Vixens were awarded too many frees in the dying minutes and ran out victors. It was my first time at a top-level netball final and with all that speed, action and excitement I recommend you add it to your bucket list.

As always, I hope you enjoy reading this edition.

Geoff Vogt

Scholar in the Spotlight

Shane Kelly
Managing Director, Kelly Engineering Australia
Global CEO Program
IESE Business School, 2013

Sustainability is at the heart of Kelly Engineering’s purpose. It began as an enterprise to help keep the family farm economically sustainable. Continue reading to learn more about Shane Kelly's approach to sustainability.

What started with legumes

"The first products we made were attachments to efficiently harvest legumes, which were planted in rotation to help make cropping farms sustainable. Subsequent products such as the prickle chain harrows and our own disc chain harrows were born to sequester carbon, not that anyone called it that at the time. Soil organic carbon and the biome it supports can be considered the living, breathing tissue that turns mineral clay and sand into soil. In its absence the soils hold little water, release few nutrients and sustain little production. Our farm, like most farms in northern SA, was contending with ancient and fragile soils, which had been hugely degraded by a century of heavy grazing and traditional tillage. Like all farmers, we were aiming to increase soil carbon, moving the needle toward healthier soils and more sustainable farming.

The Kelly Disc Chain was designed to help farmers return crop stubble to the soil. It has always been possible to return organic matter to the soil, but never convenient. Industrial cropping practices thrive on efficiency and prior to the last decade, keeping stubble in the paddocks disrupted the efficiency of cropping machinery and systems. Modern machinery and practices now embrace returning the crop stubble to the soil. It is fabulous that the practices of the fringe dwellers (or perhaps the bleeding edge) have become mainstream. This does raise a question for our company: what role does the Kelly Disc chain play now that everyone has at their disposal the means to manage their residue and to preserve their soil carbon?"

Upcoming events

Mergers and acquisitions seminar

The speakers at this month's mergers and acquisitions seminar (M&A) have significant experience spotting and executing a good acquisition, deciding when to sell and how to get the best price. Our speakers are:

• Samantha Nicholls, Director Corporate Advisory, William Buck
• Amanda Baldwin (ILF2019), Chief Investment Officer, G’Day Group
• Anthony Stewart, Group CEO, Thomas Foods International (TFI).

With a strong commercial focus, Samantha provides specialist sales and merger, and complex transactional advice, to SA businesses. Samantha will discuss what to look for, how to navigate and simplify the process, and what drives the value proposition for buyers and sellers. Amanda will tell how G’day Parks has grown to become Australia’s leading community of independent caravan and holiday parks through strategic acquisition. Anthony will share the secret behind the success of TFI, Australia’s largest family-owned grower, supplier and distributor of premium meat and seafood worldwide. 

Where: William Buck, Level 6, 211 Victoria Square, Adelaide
When: 17 June from 7.15am to 9am

Inaugural showcase networking night

Enjoy a night of networking over fine food and wine while learning more about the diverse Scholar companies within our network. You'll walk away with new connections, a better understanding of who we can support, and the chance to win some amazing door prizes. You'll also be able to view Mitsubishi’s new Australian mechanics training and product development facility, and their cars.

So far we've been donated fantastic door prizes and there will be take-home tasters of iconic SA brands thanks to the generous support of our Scholars. This support ranges from food and wine served on the night, to winery visits, tours and curated tastings, teeth whitening, fast laps at The Bend, a Windows tablet, a metal detector, vouchers for products and services, and cash donations. Numerous Scholars have also offered to help set up/pack down. 

Contact Tania Jolley, David Hart or David Evans if you'd like to contribute.

Where: Mitsubishi Motors, 1 Sir Richard Williams Ave, Adelaide Airport
When: 28 July from 6pm to 8pm
Cost: $25 per person

Mind the Gap: Managing contract risks

We all sign contracts, but do we really know what they mean? How do you know if your insurance covers all the risks adopted in the contract you sign? When the other side of a deal (you really need) will not agree to requirements your lawyer says are non-negotiable, what do you do? If you do insure, how confident are you that the policy will respond if things go pear-shaped?

This breakfast seminar, sponsored by Cowell Clark and Insurance Advisernet, will answer these questions and more. Our speakers include:

• Jamie Watts, Director at commercial law firm Cowell Clarke. Jamie specialises in building and construction, advising private and government clients on drafting and negotiating complex contracts. His expertise has been recognised in the Best Lawyers Australia guide since 2017 for construction/infrastructure and litigation law. He is also ranked by peers in the 2022 SA Doyle's Guide as a leading lawyer in construction and infrastructure litigation.
• Simon Landrigan, Senior Adviser, Insurance Advisernet. Simon's insurance career spans more than 25 years, with experience at international insurance brokerages and a specialist medical indemnity insurer. He has worked most of his career from Adelaide with a three-year period in Perth managing the financial lines division of an international broker. Simon specialises in insurance products such as professional indemnity, medical indemnity, directors’ and officers’, management liability, construction and cyber.
• Emilio De Stefano (ILF2014), Director and Principal, De Stefano and Co. Emilio has more than a decade of experience across sectors including defence, oil and gas, water and infrastructure. Having practiced in organisations ranging from start-ups to large, multinational corporates, in both technical and executive leadership roles, Emilio has an innate knowledge and understanding of people, culture, leadership, business and what it takes to succeed. With a Master of Engineering, he has undertaken the SA Defence Industry Leadership Program and an executive program with the prestigious Stanford Graduate School of Business.

More about our sponsors:

• Founded in 1996, Insurance Advisernet is one of the largest and most respected general insurance businesses in Australia and New Zealand with an ever-growing network of more than 220 authorised insurance advice practices. Insurance Advisernet is also part of the ASX-listed AUB Group, with more than 450,000 clients and $3 billion in gross written premiums. This brings buying power for clients, spanning every major insurer in Australasia as well as access to major overseas insurers including Lloyd’s of London.
• Cowell Clarke was founded more than 30 years ago with the goal of disrupting the standard reactive offerings from commercial law firms by providing outstanding personal service with a proactive, global perspective. The firm's point of difference is to proactively find ways to help clients capture opportunities and manage risk.

Where: Cowell Clarke, Level 9, 63 Pirie Street, Adelaide
When: 24 August from 7.15am to 9am

Invitations will be sent soon.

Lessons from the edge

Presented by the (AUCBG) exclusively for ILF Scholars, this breakfast seminar features real-life stories from CEOs that provide rare insights into keeping a company healthy and growing. They describe their mistakes in business and the lessons they learnt. Each CEO has completed one of the Centre’s programs and are ILF Scholars. They include:

• Dr Jana Matthews, ANZ Chair in Business Growth and Director at AUCBG, part of UniSA Business
• Kelly Keates, Managing Director, Zonge
• Matthew Stead, Chair, Resonate and CEO, Ping Services
• Calvin Stead, CEO, Kelly Engineering
• Wayne Duffy, Business Proprietor, Dulwich Bakery

Where: Australian Centre for Business Growth, Level 1, Yungondi Building, UniSA City West Campus, 70 North Tce, Adelaide
When: 8 September from 7am to 9am
Cost: FREE and exclusively for ILF Scholars

Invitations will be sent soon.

Connect with your local exporting community and cultivate valuable relationships with your peers, trade experts, services providers and other businesses at this free event. The event, hosted by the SA Export Fundamentals Program Alumni group, will enable you to:

• hear from your peers and experts who have wealth of knowledge waiting to be tapped into by new and emerging exporters
• learn how to use digital platforms and re-energise your marketing efforts to grow your export and cross-border trade 
• gain insights into opportunities in new and emerging markets 
• find out about government support for your export growth.

The Export Fundamentals Program is a State Government initiative developed by the Department for Trade and Investment to help SA businesses get started or expand their existing exports to reach new customers and markets. 

This invitation was provided by Ai Group and ILF Scholars are welcome to attend, however places are strictly limited so register early on the link below to secure your spot.

Where: Hilton Adelaide, 233 Victoria Square, Adelaide
When: 22 June from 7.45am to 10am

Shout out to SA's fast movers

Congratulations to Scholars Nicholas Berry (2019) from Seed Terminator, Emilio De Stefano (2014) from De Stefano & Co and Kirsty Chapman-Smith (2021) from Discount Party Supplies, whose businesses have joined an elite list of SA’s top 25 fastest-growing enterprises.

Announced at an Adelaide Oval function in May, BDO’s Fast Movers SA program recognises the fastest growing, most innovative SMEs in SA, determined by average percentage growth in revenue across the past three financial years.

A special mention was made to Seed Terminator and Discount Party Supplies as the only two businesses cementing a place in the top 25 for three years. Seed Terminator also took out an Excellence in Business award.

Well done Scholars – we are excited to watch you grow and we are proud to be part of your success!

Culture training summary

Written by Geoff Vogt

Approximately 75 Scholars gathered in the auditorium of the SAHMRI building to share ideas and learn how to solve the labour shortage as part of our culture training afternoon on 16 May. The event opened with a brilliant address by James Begley, CEO and joint founder of Pickstar. Pickstar was established in 2016 and has opened offices in New York and London from its base in Adelaide. It is a talent booking website that has built relationships with the likes of English Premier League clubs, AFL, Cricket Australia and the NFL. They have signed up over 2,000 stars and have over 5,000 customers. James related the success of Pickstar to his partnership with Freemantle Dockers star Matthew Pavlich, who has great contacts and an eye for detail. These talents compliment James' big-picture approach perfectly. He related his management style and motivation to lessons learned from great AFL coaches such as Neil Craig, and other life lessons.   

Here are some key takeaways I observed:   

• Culture trumps knowledge when recruiting.
• David Heaslip uses a chart with 60 culture words and asks applicants to circle four which they believe are most important.
• David Evans likened recruitment to faith, hope and charity. At the interview you have faith that you will choose the best candidate, during probation you hope the candidate will be a success, and it is charity if you keep them on when you know they are not suitable.
• People living with disabilities can add value in the right position. Risks can be reduced by recruiting through an agency or outsourcing work to a facility which employs people with disabilities. Such a move adds to the ESG credentials of your business. If you are interested, contact Mobo Group CEO Andrew Ramsey (ILF2019) on 0427 516 267. 
• There are four million older Australians seeking full or part time work. They are highly reliable, and their skills can fill gaps that are not filled by other means. They can be great teachers and mentors for younger employees, thereby increasing workplace productivity. Many will seek flexibility for reduced hours or occasional lengthy holiday breaks, but these can be managed. Mike Rungie has provided more detail in this attachment. 
• There are simple steps to increase the mental wellbeing of staff and improve productivity. Mitsubishi Motors Australia commissioned SAHMRI affiliate Be Well Co to provide a program which, from all reports, has been highly successful. Statistics on the outcomes will be available soon.
• Jane Gregg, Senior Manager, Audit and Assurance at Grant Thornton, closed the event with a short summary of the day, including six words she felt were key to a leadership style that would create a successful culture: Caring; Authentic; Collaborative; Honest; Trust; and Flexible. I must agree these words summarised the lessons of the day perfectly, so congratulations Jane.    

My thanks go to Adrian Fahey (Sage), Mark Nykiel (Aliaxis Asia Pacific), Kelly Keates (Zonge Engineering), Chantale Millard (Maggie Beer), David Heaslip (Century Engineering), Anne Hinton (TGR BioSciences), Hollie Coleman (Grant Thornton), Michael Peachey (SA Homecare Therapies), Alexei Fey (Comunet), David Evans (Spendless Shoes), Kirsty Chapman-Smith (Discount Party Supplies), Kelly Baker-Jamieson (Edible Blooms), Olivia Sorre (Mobo), James Mercuri (Ennio International), Mike Rungie, Gavin Wanganeen (Murra Partners), Ben Smit (Teamgage), Shaun Westcott (Mitsubishi Motors Australia), Monique Newberry (Be Well Co) and Katrina Webb OAM (Be Well Co). The quality of the presentations from all speakers and the relevant succinct material they contained was testament to the time and effort they put into their presentations. Special thanks go to Andrew Downs, whose work as facilitator was evident from beginning to the end. With one keynote speaker and six panels to coordinate, his time and effort contacting and coordinating all 13 speakers paid dividends as the content flowed logically and seamlessly. Each speaker had a different focus to ensure there was something for everyone. 

Finally, the day was made possible by generous sponsorship support provided by Grant Thornton, supplemented by access to the magnificent venue offered for free by SAHMRI. Thank you Iain Kemp, Office Chair for Grant Thornton, and Dave Simms, Head of Fundraising and Marketing at SAHMRI.  

If any Scholars wish to support SAHMRI, they have an event on 23 July.

ILF info night summary

Written by Anne Hinton in the third person

It was great to see a turnout of 62 emerging leaders and potential applicants at the 2022 ILF information evening on 3 May.  In addition to the wealth of information provided, those who attended were able to hear from two past scholars  with inspiring messages.

MC Anne Hinton, recently retired MD/CEO of TGR Biosciences, welcomed everyone and provided a summary of her experience with the ILF and the benefits TGR and she personally gained from the Harvard Strategic Negotiation Course. The benefits were most apparent when she was negotiating transactions with big pharma companies on her own or sometimes with a lawyer against teams of up to 10 or more people on the other side. It also allowed her to convince the European owners of the business to maintain the Australian operation when at the beginning of the Pandemic it was at risk of being shut down. In fact, the owners were so impressed by TGR’s performance they transferred business from other parts of the world to Adelaide.  

With the scene set, Anne introduced Andrew Ramsey, CEO of Mobo Group. Andrew spoke about the benefits he gained from the Transformative Leadership Program run in collaboration by the University of Adelaide and the University of Austin Texas. Having expanded on the application process, Andrew then spoke with great passion of the benefits to himself, his employees, his customers and his family from completion of the course and of particular insights he gained. He spoke honestly of the challenges for his business which, whilst undergoing reconstruction due to merger activity and NDIS changes, was hit by the Covid pandemic. His passion for lifelong learning combined with his championing of the ILF and the Scholars Network set a positive tone for the rest of the night.

Disappointingly, our second speaker Aaron Bains from the Ahrens Group, couldn’t attend. Anne read the speech he provided, and his story and his experiences touched many in the room who were keen to meet him. A 2021 scholar, Aaron is also the second recipient of the Colin J Peters AM Memorial Award.  He is not only General Manager of Rural Services for Ahrens Group but also Head Trainer for Aaron Bain Racing. He has shown his entrepreneurial leanings by being a key organiser of the Gawler Carnival of Cups. First held in 2021, the carnival brings together all of the Gawler racing clubs as a celebration of the community. It’s these achievements, not just at work but within the community, that are so impressive, especially at the age of 29. As a 2021 scholar, Aaron hasn’t yet been on his course, the Advanced Management Program at the University of Melbourne. His speech focused on highlighting the depth of thought he had given to his career progression and pathway to the future. This analysis then led him to be able to identify the course  he felt would provide the personal development he sought.

As has been the practice pre-Covid, applicants were then able to talk to representatives from a number of institutions. In addition, a number of overseas business schools provided substantial course information and the contact details of a Scholar who had attended their institution. The evening ran late as both past Scholars and institutions were in great demand. The interests and motivations of new applicants was very impressive.

Anne reported that those she spoke to found the evening both informative and enjoyable. Thanks go to the board and past Scholars who attended and provided their insights. Although Suzi could not be there, her fantastic organising skills left little for us to do on the night, so thank you Suzi.

Finally, Anne congratulated Geoff, saying “I’m not sure how you do it but once again you have found some impressive candidates”.

A note from Geoff: Anne deserves congratulations and sincere thanks for an excellent performance as MC and for doubling up as our reporter for the night!

Business in Brief

Just for laughs – or is it?

This article, published in CPA Australia’s In the Black magazine, says humour is one of the most underappreciated assets in the workplace; a teachable skill that can alleviate stress, strengthen bonds and boost culture. The article cites research that shows leaders with a good sense of humour are 27 per cent more motivating, while customers are willing to pay up to 20 per cent more when a salesperson ends their pitch on a funny note.

Read the In the Black article.

Elon Musk's SpaceX plans to settle Mars before the century is out

Do you want a new lifestyle? How about more excitement in your life? Perhaps a move to Mars?! Well the good news is Elon Musk is planning to have people living there as early as 2029. This lengthy but thought-provoking article from Interesting Engineering magazine explains how SpaceX and Musk are working to make this a genuine possibility.

Read the article.

House prices to control rates hike

Wondering how high interest rates will climb? This article from Livewire suggest that a 200 basis point increase in interest rates from current levels would lower real housing prices by approximately 15 per cent over two years, relative to the baseline model projection in the absence of an interest rate shock.

Read the Livewire article.

New opportunities from energy cost challenges

Soaring oil and gas prices are a major challenge for businesses but the energy crisis is also creating new economic opportunities, particularly for green energy start-ups and larger companies. That's the word from I by IMD. Interestingly, the article suggests that one way to slash emissions and operating costs is to reduce office space in response to the rise of hybrid working, giving companies more flexibility over their energy consumption costs.

Read the I by IMD article.

How to become – or support – a corporate nomad

This article from Harvard Business Review talks about the growing phenomenon of nomadic workers, and how you as employees and employers can support this objective. It describes corporate nomads as "individuals who, while maintaining full-time employment with their organisations, participate part-time in geographically dispersed initiatives and projects within their employer’s global network". This will become increasingly important amid The Great Resign.

Read the Harvard Business Review article.

Words of wisdom from one of the world's most popular AGMs

The Berkshire Hathaway AGM has a cult following due to the long-term strong investment performance of the company, led by Warren Buffett (91) and Charlie Munger (98). This blog post from FinSec Partners summarises some of the more memorable comments from the two leaders. Interestingly, they recently announced major share purchases after sitting on the sidelines.

Read the blog.

Scholars in the Media