APRIL BULLETIN

Hear from Bowhill Engineering's Jeremy Hawkes, survive the Great Resignation and diarise our upcoming events.

Message from the CEO

It's been a busy few weeks media-wise with the State election and Federal budget, but somewhat quiet on the application front for our 2022 study grants. We now have nine applications, down from 15 at the same time last year, owing to increased demand from 2020 spilling into 2021, and my attention being diverted to strategy, systems overhauls and ILFSN functions. The dip in numbers indicates that it could be a successful year for candidates, provided they meet our strict criteria. ILF standards will not be dropped, however the pressure to raise them might not be as strong this year as it has been in the past or will likely be in the future. If you know a suitable candidate please encourage them to call me on 0457 900 202 to allow me to assess their eligibility and provide advice to maximise their competitiveness. As always, we are particularly searching for female applicants (see separate story).

Out and about

In the past month I attended various functions and events, including:

• the CEO Institute SA Summit which provided highly relevant content delivered by inspirational speakers
• the ILF ESG seminar, sponsored by DMAW Lawyers (read more below)
• an insightful budget breakfast as a guest of Ord Minnett in the spectacular Pacific Cultures Gallery of the SA Museum
• an entertaining and inspirational lunch address by Kris and Mitch Lloyd
• the Veterans' Affairs mentoring program wrap-up function arranged by Christine Molitor (ILF2017) at the National Wine Centre.   

Scholar success

This month's heart-warming Scholar in the Spotlight features Jeremy Hawkes (ILF 2013 and 2014) – a boy from the bush who left school early, only to return to study and reap the rewards.

Diary dates

Don't forget to mark these key dates into your diary, and continue reading this month's bulletin for more details on each event:

• an ILF grant info night on 3 May from 6pm-8pm
• culture training on 16 May from 12.30pm-6.30pm with a focus on managing labour shortages, hosted by Grant Thornton at SAHMRI
• a mergers and acquisitions seminar sponsored and hosted by William Buck on 17 June from 7.15am-9am
• the inaugural ILF Showcase networking night on 28 July from 6pm-8pm at Mitsubishi Motors' new Australian mechanics training facility.

Hot topics

This month two issues in the news caught my eye:

1. The loss of nearly 4000 luxury Volkswagen, Audi, Bentley and Lamborghini cars on a ship that caught fire. The quantity of water required to douse the fire was so great that it made the ship unstable and it sank while under tow to the US. In case you are thinking of putting on your snorkel and flippers to salvage a Lambo, it is under 10,000 feet of water! The real story is the cause of the fire which is understood to have been a lithium battery in an EV. This leads me to question the wisdom of buying an EV right now. If I do, it will certainly not be parked near the house.
2. There are two huge shale gas deposits in Ukraine, the largest in the eastern Mariupol region and the other in the west near L’viv. When developed they could have supplied much of Europe’s needs and threatened the Russian stranglehold over gas supplied to Europe. Maybe this was Putin’s motive to invade? It's certainly a good reason for Europe to support Ukraine resistance.

My more significant readings in March included a selection of articles on attracting, retaining and motivating staff amid The Great Resignation. I've linked these must-read reports in this edition. On a separate topic, one article that caught my eye was about the often-neglected bodily system that, if looked after, will help you live longer and lead better. There are, as always, plenty of newsworthy items in the Scholars in the Media section too.

Beyond business

March in SA is fondly referred to as "Mad March" and my social calendar was no exception! In diary order, here are the highlights:

• On 4 March I was treated by our daughter, Ally, her husband Peter and grandson Noah to a front-row seat at the basketball as an early birthday present. We watched the 36ers go down to the South East Melbourne Phoenix in an exciting game, with the lead changing several times. I found a new favourite player, Phoenix’s 216cm (7 foot 1 inch) tall Zhou, who missed two set shots. His loss scored us all a free cheeseburger, and Noah, a fast-growing 14-year-old, made short work of the lot.
• On 8 March we arrived at Ally’s house in the morning to wish her a happy birthday. She loved the dress Lisa had chosen for her.
• 10 March saw the Press Club’s lunchtime debate between leaders (don’t mention the election) followed by a lovely long afternoon with my lunch club friends in a downstairs location with great wines.
• 11 March, my actual birthday, saw the installation of our new outdoor blinds by Country Blinds. The appearance is excellent and the functionality superb. I can highly recommend the Country Blinds team ably lead by CEO Rhett Payne (ILF2014). David McNeil kindly delivered four trestle tables and 30 chairs ready for my party on the 12th – thank you David!
• 12 March arrived with lots or prep work in the morning and a great celebration with 50 family members and close friends in the afternoon. Thankfully Ally and my granddaughter Jill spent the morning helping to set up. The weather was perfect, the caterer provided brilliant food and the guests made short work of the 6 litre bottle of 2006 Gibson Merlot, thanks to Chad Elson (ILF2021) who introduced me to the product. We also enjoyed a 3 litre bottle of Champagne and made a hefty dent in the cellar! Our son Marcus proposed the toast with a beautiful speech and Jill, aged 11, gave a lovely speech from notes she had written on her phone, followed by a surprise walk down memory lane from an old army buddy. Needless to say, I was grateful to have the long weekend to recover. The below photos were taken by Simon Stanbury.

• 20 March was Lisa’s birthday, which we celebrated on our own due to Covid isolation being enforced on granddaughter Jill and son Michael.
• On 26 March Lisa and I joined Barry Willoughby, an old army mate and his wife Leonie, for lunch at the new Bridgeport Hotel in Murray Bridge. With a well-priced menu in a riverfront location, I'd recommend it if you're in the area. A highlight of the day was hearing about Barry's life experiences, including one occasion where he was held hostage by rioting prisoners with a screwdriver at his throat at Yatala Labour Prison!

As always, I hope you enjoy reading this edition. If you have any feedback, suggestions or story ideas, please get in touch.

Geoff Vogt

Scholar in the Spotlight

Jeremy Hawkes
Managing Director, Bowhill Engineering
Lean Japan Tour, Shinka Management, 2013
Senior Managers Program, Melbourne Business School, 2014

A self-proclaimed "country lad" with a Year 11 certificate, Jeremy Hawkes held little confidence in his academic abilities – or so he thought. With grit and guidance, he secured not one but two ILF grants to study senior business management. As Managing Director of Bowhill Engineering, a second generation family business in the Murraylands, he shares his inspiring leadership story.

"Bowhill staff are driven by a passion best described as together we thrive. We build large and complex structures such as bridges, ferries and mining platforms to high specifications for infrastructure, mining, marine and defence industries. With a team of approximately 50 direct staff, we’re proud of the opportunities we provide for regional careers.

In 2013, the steel fabrication industry was suffering. The statistics were bleak, with 30% of our competition closing its doors on the back of an economic downturn. Even during this challenging period, I was so proud of our leadership team – we dared believe that we could not only survive, but thrive.

But how to do this was the overarching question!

Mark Bell suggested I apply for an ILF study grant. The criteria fit my situation (SA-based leaders passionate to make SA great) but most scholars seemed to have undertaken postgraduate studies, which I felt unqualified and inadequate to participate in. My thinking was that because I was a country lad and “just” a tradesman with a Year 11 certificate, I was somehow inferior to the academics. Thankfully I did not give up and Geoff Vogt, with his support and guidance, was exemplary. With little hope of being chosen, I still went to an info session and put myself forward for a lean tour of Japan with Shinka Management. The process was highly rewarding, and such was the confidence in me from the ILF that I was also successful in securing a grant for an intense management program with the Melbourne Business School in 2014.

My journey from an insecure lad who was “winging it” with no formal management training and no tools in the toolkit (so to speak) has evolved significantly, and Bowhill Engineering has come a long way. The knowledge I've gained from the ILF program has contributed to improvements that have transformed the business to the strong position it holds in our industry, growing from 20-something employees in 2013 to 50-plus today. Many of the major steel bridge girders in Adelaide have been supplied by the Bowhill team over the past seven years. We are qualified to the highest level in Australia which allows us to build critical infrastructure in any state and, particularly, the hard-to-crack East Coast. We've found that by accumulating latest information, we've been able to implement timely improvements incrementally, month-by-month, over decades. I liken it to an onion – layer upon layer, protecting the organisation with systems and procedures. It’s just as the Japanese lean masters suggest – small, seemingly insignificant improvements consistently over time make a profound, long-term performance impact.

But it’s not all about work. A balanced and sustainable attitude towards family, friends and community, with a view to build loving relationships, is the cornerstone of a good person and leader. I’m in it for the long game – work should (and is) my passion but not at the expense of those dear to me. Thankfully I've had the opportunity to share my life and work journey with my beautiful and brilliant wife Jodie. I am truly blessed."

Rooftop insights on ESG

Amid sweeping city views from the DMAW Lawyers' rooftop, about 35 scholars attended our seminar on Environment, Social Responsibility and Governance (ESG) last month, gaining key insights from three key speakers.

Zoe Detmold, Founder and GM of Cup and Carry and GM, Detmold Ventures, explained the importance of ESG principles to her businesses. According to Zoe, meeting higher standards can be costly and challenging, but the benefits include a competitive advantage, access to a wider range of motivated and talented employees, and a better reputation. Her key lessons are:

• Tell your story well and back it up well with facts.
• Check that raw material is available and at what cost.
• Understand what the market will accept.
• Monitor changing opinions.
• Realise that most customers say they will pay 5% extra for a good environmental outcome, some may agree to a 10% rise but almost no one will pay 20% extra.
• Ensure your staff understand what is being done and why, and equip them with answers they might need in “barbeque” conversations.

Burkhard Seifert, Transformation Entrepreneur, OZ Minerals, related his talk to the OZ Minerals purpose, going beyond what's possible to make lives better. In order to achieve this, Burkhard says OZ Minerals aims to empower staff to challenge current ways to create value for the community, employees, government, shareholders, and suppliers.

The principal tenet is that positive value creates positive outcomes. This meets the G of the ESG acronym. There are two types of innovation; sustaining innovation where things are done more efficiently; and disruptive innovation, where things are done in a new way. Environmentally (the E in ESG), he says OZ Minerals has targets to eliminate carbon emissions and minimise waste and water. It is tackling both types of innovation through its Think & Act Differently Incubator, which applies a unique approach to innovation to attract the best minds from both inside and outside the mining industry and connect dots in new and exciting ways. In developing new approaches, OZ Minerals consults widely with the community to fulfil the S of the acronym.

Nicole Mead, Senior Associate at DMAW Lawyers and niece of Andrea Mead (ILF2014), was the MC and third speaker. Avoiding the usual lawyers' traps of citing legislation and terrifying the audience, she instead shared these tips:

• Rumour: if you go woke (ESG) you will go broke. Fact: properly managed ESG will generate good returns, like any opportunity.
• ESG is the same as Corporate Social Responsibility. ESG gives transparency and accountability to socially responsible activities and initiatives.
• Rumour: ESG is expensive and difficult to implement. Fact: like any business project there are challenges that need to be carefully managed.
• ESG is a good risk management tool but it has its own risks. For example, you need to demonstrate that what you say you are doing you are actually doing. There are court cases (e.g. Santos) right now about this issue.
• There is no legal obligation for ESG. Legislation is the base case, but this might not meet community expectations. It is better to make a start now and get ahead of your competitors.       

Congratulations to our guest speakers for sharing their knowledge and insights, and to Tasha Naige, DMAW Lawyers Principal, for sponsoring this highly successful and informative event. 

Upcoming events

ILF Information Night

The premier event on the ILF calendar for potential applicants, our information night provides the opportunity for prospective candidates to obtain advice from education bodies, scholars and ILF board members on their future course.

As an existing ILF scholar, this is your chance to assist applicants in the often difficult task of choosing their course. It's also one way to give back to the ILF. On the flip side, if it's been some time since you completed your ILF-supported course, our information night is a great opportunity to explore the next instalment of your professional development.

Our speakers are:

• Anne Hinton (ILF2014), professional director and recently retired as MD/CEO at TGR Biosciences
• Andrew Ramsey (ILF2019), CEO of Mobo Group
• Arron Bain (ILF2021), General Manager Rural at Ahrens Group and 2021 Colin J Peters AM Memorial Award Recipient.   

A wide range of educational bodies will be represented, along with ample food and refreshments to ensure you won't go home hungry or thirsty!

Where: ILF, Level 1, 45 Greenhill Road, Wayville
When: 3 May from 6pm to 8pm

Formal invitations to follow.

Culture Training

In an age of skill shortages, this seminar will give you new ideas to retain staff, motivate them and remove obstacles to maximise their contribution to your objectives. Rather than compete in a bidding war for skills, you will be encouraged to think about alternative sources of skilled labour.

The seminar will feature a keynote speech by James Begley, CEO of Pickstar, winner of the Innovator Award at the 2021 MYOB Smart Company Awards. James will explain the business of Pickstar and the challenges it has faced. He will outline how he has set the tone from the top and managed culture to ensure optimal outcomes in a fast-paced environment.

Sponsored by Grant Thornton, with Andrew Downs as MC, the event will feature the following panel discussions:

1. Managing culture in a multi-location business with Adrian Fahey (Sage), Mark Nykiel (Aliaxis Asia Pacific), and Kelly Keates (Zonge Engineering)
2. Managing culture in manufacturing with Chantale Millard (Maggie Beer), David Heaslip (Century Engineering) and Anne Hinton (TGR BioSciences)
3. Managing culture in service industries with Hollie Coleman (Grant Thornton), Michael Peachey (SA Homecare Therapies), and Alexei Fey (Comunet)
4. Differences between bricks-and-mortar and online retail with David Evans (Spendless Shoes), Kirsty Chapman-Smith (Discount Party Supplies), and Kelly Baker-Jamieson (Edible Blooms)
5. Recruiting horizon expansion with Andrew Ramsey (Mobo), Ennio Mercuri (Ennio International), Mike Runge, and Gavin Wanganeen (Murra Partners)
6. Improve morale and productivity with Ben Smit (Teamgage), Shaun Westcott (Mitsubishi Motors) and Katrina Webb OAM (Be Well Co).

Where: SAHMRI, North Terrace, Adelaide
When: 16 May from 12.30pm to 6.30pm

Formal invitations to follow.

M&A Training

M&A is the title given to the art of strategically acquiring or merging with other businesses to aid growth of your business and, if selling, ensure you get maximum value. Whilst the ILF is dedicated to grow employment, wealth and larger head offices in SA, underpinning the German approach of building long-lasting business structures rather than the traditional Australian approach of fast growth and quick sales, we do recognise there are times when selling is the best answer. Although M&A might not seem like a priority, you never know when the opportunity might appear. If you are not ready, you could miss out.  

The speakers at this seminar have significant experience in spotting and executing a good acquisition, deciding when to sell and how to get the best price. Our final speaker will be decided at a later date, but for now you can expect to hear from Amanda Baldwin (ILF2019), Chief Investment Officer, the G’Day Group, and Anthony Stewart, Group CEO at Thomas Foods International (TFI).

G’day Parks has grown rapidly in recent years through strategic acquisition and is now Australia’s leading community of independent caravan and holiday parks. Formerly known as Top Parks, the G’day Parks network has grown to more than 300 parks, making it the largest of its kind in Australia. A major part of its recent growth has been through acquisition, seeing the business diversify from a caravan park and mining accommodation provider into top-ranked resorts in world-class locations, such as Rottnest Island. Control of these acquisitions, originally controlled by CEO Grant Wilckens, was delegated to Amanda several years ago. 

At TFI, Anthony was appointed Group CEO in November 2021 after periods as CFO and Chief Commercial Officer. In previous roles he was responsible for multiple acquisitions and divestments executed by TFI, which has grown from small beginnings to become one of Australia’s largest family-owned food businesses. With teams in Australia, the US, China, Japan and Europe, TFI brands and business partnerships grow, supply, and distribute premium meat and seafood worldwide. Part of the secret behind its success is that they are constantly experimenting and branching out into new markets. Some markets are forged by creating new partnerships, such as its recently announced plant-foods business, but many, such as seafoods, are acquired through acquisition.

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

Formal invitations to follow.

Inaugural ILF Showcase Networking Night

Three members of the ILF Scholars Network committee have been working hard to create a new-style event where scholars can network over fine food and wine, ensuring we have maximum energy levels and well-lubricated vocal chords for productive interchanges! It is hoped that over time these events will prove fun, popular and enable funds to be raised to assist in the operating costs of the Scholars Network. At the event you will also be able to see Mitsubishi’s new Australian mechanics training facility, some of their vehicles and potentially their new Australian product development facility.

Tickets are being capped at $25 per person thanks to the generous support of numerous scholar businesses including: Gelista; Mitsubishi Motors Australia; Angove Family Winemakers; Woodside Cheese Wrights; Spring Gully Foods; Moo Premium Foods; Maggie Beer; Edible Blooms; Barossa Valley Cheese Co; Dulwich Bakery; Wirra Wirra Wines; Thomas Foods; SA Mushrooms; Discount Party Supplies; Kay Brothers; Oliver's Taranga Vineyards and Spendless Shoes.

Along with fabulous scholar-donated food and wine, the committee is on the hunt for door prizes and a fundraising raffle. If you can offer innovative crowd-pleasing ideas, food, beverage or door and raffle prizes, please contact Tania Jolley, David Hart or David Evans. Scholars Network committee chairman David Hart will be expanding on the opportunity to support the event in a letter to be sent soon.

Where: Mitsubishi Motors, 1 Sir Richard Williams Ave, Adelaide Airport
When: 28 July from 6pm to 8pm (TBC)

Study at world-leading business schools

With females comprising just 38 per cent of last year's ILF study grants, we are encouraging you to nominate women leaders to apply for our 2022 round. Grants of up to $50,000 are up for grabs, taking scholars to some of the best business schools in the world.

Acclaimed cheesemaker and entrepreneur Kris Lloyd AM (pictured), was awarded an ILF grant in 2014 to study the Company Directors Course at the Australian Institute of Company Directors. She applied the knowledge and skills gained through the course to grow her cheese empire, Woodside Cheese Wrights, in the Adelaide Hills.

Our grants are open to both females and males. Applications close May 31. See the website for eligibility criteria.

Business in Brief

The Great Resignation

Our upcoming culture training day will provide tips on how to recruit, motivate and retain staff – keys to overcoming the "Great Resignation". Featuring in CPA Australia’s In the Black magazine, this article talks about whether the Great Resignation will hit Australia, and some must-read tips to understand staff motivation. Short on time? Read the last page first. 

Read the In the Black article.   

The Great Remorse

According to this Macks Advisory article, one in four staff who resigned in 2021 have come to regret their decision. It contains plenty of practical tips on how to woo the deserters back and retain those you attract so they won’t go back. 

Read the Macks Advisory article.

Tips to retain staff

High team turnover can influence overall staff engagement, morale and productivity. Owing to social contagion, it can even encourage others to quit. In this article, you'll learn six strategies to keep your team motivated when a colleague quits.

Read The Australian article.

Renewable hydrogen costs predicted to plummet by 2030

While renewable hydrogen is hyped-up by experts and investors such as Twiggy Forrest, others say it uses too much electricity and water to make. This BloombergNEF analysis predicts it will be used in steelmaking and chemical plants but will not supplant car batteries. It says Australia is a great place to make hydrogen, yet competition will be stiff.

Read the article.

Incentivising success

This article tells how a fund manager judges if the incentives of a remuneration system are appropriate. If you're considering an incentive-based remuneration system, this is worth a read.

Read the Livewire article.

Live longer, lead stronger

A good leader needs a sharp mind and a healthy body. This article explains how the lymphatic system plays a significant role in everything from disease prevention to improved digestion and energy levels.

Read The Australian article.

Scholars in the Media