JUNE BULLETIN

From humble beginnings as a family-run farm to a main supplier of mushrooms nationwide, SA Mushrooms continues to hold high standards as it stands by the “farm to plate” philosophy.

CEO's Report

Welcome to my first report. A special thank you to Geoff for his assistance with the transition this past month. I am exceptionally humbled to lead such a distinguished program – testament not only to the stewardship of the ILF Board and energy of the ILFSN, but the care and skill with which Geoff has nurtured every aspect of the ILF over the past 13 years.

I join at one of the busiest times, with May being a very active month running down to the close of Stage 1 grant applications on the 31^st. A great time to immerse in that process, but no time to waste either, with the next two stages to follow along tight timelines during the coming weeks.

While I already knew quite a few of our Scholars, it’s been great to connect with more of you this past month. For those of you I haven’t met yet, I look forward to doing so in the near future and am always available if you need to reach me (my contact details are at the end of this report). 

I continue to be highly impressed (blown away might be more apt) with the standard of the ILF Scholars Network. This is without doubt Australia’s, if not one of the world’s, foremost group of connected business leaders for which there is no opportunity to pay, or otherwise acquire membership. This has, over time, created an exclusive, closely aligned circle of distinguished individuals who have truly earned the right to win together and to inspire others in a way that no other leadership program can quite match.

New member of the ILF

Welcome to Shaun Westcott (pictured), CEO and President of Mitsubishi Motors Australia, as a member and ambassador of the ILF, who also assumes the role of Chair of the ILF Scholars Network (ILFSN).

Shaun, a 2018 Scholar, studied Leadership for Senior Executives at Harvard Business School and is already making an impactful contribution to the ILFSN, as well as to the state.

As a reminder, for a Scholar to become an ILF member/ambassador, you would have held a position on the ILFSN Committee for at least 12 months, successfully completed the approved program of activities and/or study for which the grant was awarded, and have held the position of Committee Chair, Treasurer, Secretary or Functions Member.

2023 grant applications

A total of 52 completed applications were received by the May 31 deadline. While some will not meet all of the ILF criteria, the standard of applicants has nevertheless been high.

We are pleased to see a number of applications from leaders in companies from emerging growth sectors for SA including defence, space, ag-tech, digital technologies and renewable energy, as well as our traditionally strong areas including food and beverage, manufacturing and tourism.

Several quality applicants have been referred by current ILF Scholars. Some even stating they have such high interest in joining the network, that receiving the grant itself is secondary! This really does reinforce that becoming a Scholar is earned rather than bought – one of the ILF’s most distinctive attributes, setting it well apart from any other leadership or networking program.

Assessments will progress over the coming weeks and we are very confident that a number of very talented candidates will join the ranks in 2023/24.

Richard Barrett
CEO, Industry Leaders Fund
Level 1, 45 Greenhill Road, Wayville SA 5034
M: 0417 283 633
E: richard.barrett@industryleaders.com.au

Scholar in the Spotlight

Nick Femia
CEO, SA Mushrooms
Owner President Management Program
Harvard Business School, 2017

From humble beginnings as a family-run farm to a main supplier of mushrooms nationwide, SA Mushrooms continues to hold high standards as it stands by the “farm to plate” philosophy.

Mushroom masters

The oldest of three children, Nick worked from a young age with his father Sam (pictured middle) in different family-owned businesses before starting SA Mushrooms. Together with younger brother Nat (pictured right), the trio has been running SA Mushrooms for more than 25 years. Being in full control of their supply chain – from producing compost and growing mushrooms to running a wholesale stand at the SA Produce Markets – enables them to distribute Australia-wide.  

Humble beginnings to mushroom empire

Nick’s passion for mushrooms originated in Queensland, where he volunteered on a mushroom farm in 1997. The three-month experience of living in a tiny caravan next to a straw shed on the Sunshine Cost provided invaluable insights into the mushroom industry, ultimately propelling him to set up the business a year later. The family's vision wasn't to become the biggest mushroom grower in Australia, but to do things their way and never compromise quality over volume.

Recent events

Gearing up the Green Economy with Professor Göran Roos

This breakfast event, held at William Buck, illuminated why adapting business models to meet the demands of the Green Economy is now critical.

The new standards being set by the European Union will have to be met by exporters to Europe and in turn to suppliers of inputs to those exporters. According to Professor Roos, your customer may not be in Europe but if they export a portion of the output there they will need to comply, which means you will need to comply. The EU is a first adopter, but others will likely follow.

In this thought-provoking session, we heard why South Australian manufacturers must act now to ensure their businesses comply with changing requirements of national and global supply chains.

Thank you to Professor Roos and the Department for Industry Innovations and Science. And once again, we appreciated the support of William Buck as event sponsors and for providing the great venue.

Applicant Information Evening

The 2023 Applicant Information Evening was held at Lumination on May 2. This was very well attended, with a number of quality applications since coming forward as a result.

We heard from Scholars Michaela Webster, MC (ILF2021), Charlie Sykes (ILF2018), Stephen Moss (ILF2022) and Tom Hastwell (ILF2022), who shared their own course choices and experiences from prior years.

Several leading education institutions were on hand to help potential applicants understand key aspects of their intended course content and what will best fit both their leadership careers and support their businesses.

Thanks to:

• University of Adelaide, Business School MBA – Gary Bowman and Jasmina Mujkic
• University of Adelaide, PACE – Sally Jones and Grega Vrettis
• University of South Australia, Business School / ACBG – Leanne Steele and Richard Littleton
• Australian Institute of Company Directors – Ian Liddell
• Melbourne Business School – Tim Steers and Stephen Smith
• Said Business School, University of Oxford – Mark O’Brien
• Shinka Management – Paul Smith and Ben Sparrow
• Australian Owner Manager – Rob Douglas
• XEd Space- Rick Leahy
• IESE – unmanned display.

And a special thank you to Lumination for hosting this great event.

Upcoming events

Business Value Maximisation 

One of the key measures of success in any business is growth in its value; this growth is rarely in a straight line. At our Business Value Maximisation half-day training on 16 June you'll hear from business leaders who've overcome fluctuating fortunes and met the challenges that were thrown at them in the process of building great businesses.

Our facilitator is Chantale Millard (ILF2017), who was appointed CEO of Longtable Group at a time when the share price had fallen from $1.65 to about 15c in two years. She stabilised the group, oversaw its name change to Maggie Beer Holdings, built an online presence and overcame all the challenges that Covid threw at the business, propelling performance to support a share price of over 60c by February 2022.

The keynote speech will be delivered by Jim Whalley, Deputy Chair and joint Founder of Nova Systems and former Chief Entrepreneur in SA. Jim became CEO of Nova in March 2000 and the business has grown from two people in Adelaide to an international operation with more than 850 employees.   

Following the keynote speech, the six panels listed below will shed light on different aspects of wealth creation:

1.  Build a growth-oriented leadership team
2.  Build the market
3. Understanding what you have and its value
4. What can go wrong?  
5. Board-advisory vs full – does a board add value?
6. Case study – Kelly Tillage.

The speakers are too numerous to list in full but include Andrew Downs (ILF2013), Alf Ianiello (ILF2011), Claude Cicchiello (ILF2014), Shane Kelly (ILF2013), Calvin Stead (ILF2018), Alexei Fey (ILF2020), Michaela Webster (ILF2021), Penni Donato (ILF2019) and Theo Kristoris (ILF2021).

There are many aspects to being successful in business and this training session will see top-performing Scholars and business leaders outline their experience in many of the dimensions of industrial-scale growth. There will also be networking opportunities at lunch, afternoon tea and post-event drinks. The event is free of charge thanks to sponsor Grant Thornton. 

When: Friday 16 June, 12.30pm-6.30pm
Where: Grant Thornton, Level 3, 170 Frome Street, Adelaide

Save the Dates*

• 18 August: How businesses succeed in difficult, uncertain times
• 25 September, 5.30pm to 8.30pm: ILF Awards Ceremony
• 23 October: Investing in uncertain times
• 20 November, 5.30pm: Mentoring launch
• 11 December, 6pm to 8pm: ILFSN Christmas party

*All dates listed above are to be confirmed.

Business in Brief

SA to open German trade office

South Australia will open a trade office in Germany, establishing a permanent presence in the largest economy in Europe. The office will be established in Frankfurt, making SA the fourth state with a presence in Germany, joining NSW, Victoria and Queensland. Germany is South Australia’s eight largest trading partner, with two-way trade worth $622m. There are currently 67 German companies with a physical presence in South Australia – only the US and UK have more. Importantly, Germany is facing an energy crisis arising from Russia’s invasion of Ukraine and is aggressively pursuing the development of green hydrogen energy as an alternative energy source. Germany is the biggest player in Europe when it comes to green hydrogen, with strong potential for investment related to SA's Hydrogen Jobs Plan. The office will join other SA trade offices in the UK, US, China, India, Japan, South Korea, Singapore, Malaysia and the UAE.

Read the Department for Trade and Investment article. 

Cyber insurance: an unviable product?

Cyber insurance seems to be getting cheaper after a 100% spike a year ago, while conditions on claiming become more difficult. Businesses with a turnover of less than $100m should now have multi-factor remote logins, and might have to expect no cover if they are attacked by a “state sponsored criminal”. The problem is there is no clear definition of “state sponsored criminal”.

Read the Tech Monitor article.

Safeguarding your data in the AI age

Generative AI systems such as ChatGPT have the potential to change the way business is conducted, offering exceptional opportunities to innovate and optimise operations. But without proper oversight, employees might inadvertently provide sensitive data and IP to generative AI algorithms that could lead to data breaches, unauthorised access and misuse of proprietary information. This I by IMD article explains why businesses must immediately establish policies governing the use of generative AI systems, including guidelines on the types of data that can be shared.

Read the I by IMD article.

Bankruptcy threat for US banks

A US Federal Reserve report indicates more than 720 banks in America are under threat of bankruptcy. According to the report, 31 of these banks have negative tangible equity levels, which means they're not able to borrow new money from Federal Home Loan Banks and may lose the ability to sell loans to Government Sponsored Enterprises.

Read the Modern Diplomacy article.

Scholars in the Media