SEPTEMBER BULLETIN

Meet SA's manufacturing powerhouse, Anthony Kittel

CEO's Report

August has been a month of variety. Suzi started the month organising photoshoots for our 2023 brochure, which is quite a juggle as she has to coordinate a shoot schedule that follows a logical travel sequence to avoid backtracking while setting times that suit the availability of the new Scholars. Photographer Simon Stanbury and I hit the road testing Suzi’s work and taking pictures of the new Scholars. As always, Suzi did a brilliant job of coordinating the shoots. We got lost once in Mount Barker because Flaxley Rd is in a totally different spot from where I remembered it, but Google Maps saved us.

The new Scholars are an impressive bunch as you will see at the Awards Ceremony on 26 September. Hopefully you have received your invitation and noticed that, for the first time, we have responded to requests over the years for provision to be made for extra guests. This year you are able to purchase tickets at a price which will just cover expected costs. Several people who have seen the invitation say that $95 is very reasonable for a function which provides great networking, good food and quality beverages. We have a great line up of guest speakers including one whose story might surprise you. I was blown away when I heard what she had to say.

For some time the Board has been grappling with rising costs to run the ILF and Scholars Network. All these outgoings need to be met by earnings from a prudently-managed share portfolio; the performance of which has exceeded the index on a cumulative basis since inception. The Board has implemented a business efficiency process which will also help. The proceeds from the recent showcase event are intended to contribute to the costs of Scholars Network functions. One option is to reduce the burden on the ILF of the administrative costs of supporting the Scholars Network, perhaps by introducing a function charge, and this may need to be considered in the future. Another option is to reduce the volume of grants year by year. The preferred option is to improve the inflow of donations to the ILF and the Chairman’s Foundation, a trend which has pleasingly built a strong head of steam over the past 12 months.

Out and about

• I joined a “For Purpose” video conference run over two half days by Ord Minnett. There were several useful tips that I will either apply or recommend to the Board to improve ILF operations. I was surprised to learn that 90% of superannuation saved  during a person’s lifetime is still intact when they die.    
• Along with ILF President, Richard Colebatch, I attended a business breakfast addressed by Andrew Ramsey. It was pleasing to see Jon and Frank Seeley in the audience. The audience was really impressed by Andrew’s willingness to openly share his challenges and methods to overcome them. He was particularly complimentary about the ILF, the Transformative Leadership Program and the benefits of the Scholars Network. Richard and I were impressed by the positive response evident in the body language, engaged questions and the affirmative comments from the audience. It is likely that several of the businesses in the room will speak to Andrew about how his people can help their businesses overcome labour shortages.
• At the end of the month Richard and I found ourselves enjoying another business event, this time as guests of new Business SA CEO Andrew Kay. The topic was real estate markets and the keynote speaker Dan White, Group Managing Director of Ray White Group, in a well-reasoned and researched speech gave us confidence that the SA residential market outlook is at least as strong as any capital city in Australia. I met several Business SA staff and they were very complimentary about the new leadership style; they feel they are valued contributors, that there is a clear direction and less rushing from the latest "urgent thing" before moving onto the next. A big bonus for the ILF was  being introduced to several attendees who would likely make excellent Scholars, if and when they apply.            

Beyond business

After an enforced two month break I started the month donating plasma at the Red Cross Regent Arcade clinic, and a week later discovered I had finally succumbed to COVID. I am experiencing an extreme post-COVID cough that scares people away and again rules out visits to the Blood Bank. It also means there is not a lot to report this month. That may come as a relief to some, as I received feedback that this section of the report is not appreciated by a Scholar, and there may be more. This is second-hand information and no one has said this directly to me. On the contrary, I started writing this section after receiving several requests and multiple Scholars have commented favourably on the content since. I am happy to continue and equally happy to stop if that is a strong preference. To be honest, not doing it would save some work. In the meantime, I hope anyone who is not a fan finds enough other valuable and interesting content to make it worth reading the bulletin.  

As always, I hope you enjoy reading this edition.

Geoff Vogt

Scholar in the Spotlight

Anthony Kittel
Managing Director, REDARC Group
Owner/President Management program, 2010
Harvard Business School (USA)

From a modest upbringing in Port Augusta to the halls of Harvard, Anthony Kittel has forged an illustrious career that has seen him become a beacon of the manufacturing industry in South Australia.

Earlier this year, the CEO and owner of Lonsdale-based advanced manufacturer REDARC Group was inducted into the Australian Automotive Aftermarket Association Hall of Fame for his outstanding contributions to the industry. It’s one of many accolades he has received over the years, including being the inaugural recipient of the ILF’s Colin J Peters AM Memorial Award in 2020.

Despite a long list of honours that include serving as National Vice President and Director of the Australian Industry Group, Chair of Flinders University’s College of Science and Engineering Industry Advisory Board and a member of the Adelaide University Business School Industry Advisory Board, he said winning the ILF award was one of the “proudest moments” of his career. “Mr Peters was a doyen of manufacturing in South Australia and a key instigator of the ILF. I am delighted through my business, REDARC, to be able to contribute to the economic development and job creation in SA and follow in his footsteps,” he said at the time. Anthony was the first-ever ILF Scholar, receiving his grant in 2010 to study the Owner/President Management program at Harvard Business School, which he completed in 2013. That same year, he went on to serve as Chair of the ILF Scholars Committee until 2015.

With a degree in mechanical engineering and an MBA, Anthony was awarded an honorary doctorate – the highest honour conferred by a university – from Flinders University in 2018 for his focus on transformative workplace culture and new product development, as well and his investment in future business leaders through mentorship, professional development and career guidance. He is a Director of privately-owned technology businesses Coogee Metals Ltd, Asension and Silentium Defence. He is also an Advisory Board Member of Space Machines Company and past Chair of the SA Training and Skills Commission. He is a Chartered Professional Engineer, a Fellow of the Institution of Engineers Australia, and a Fellow of the Australian Institute of Company Directors.

Mind the Gap recap

Written by Geoff Vogt

A warm welcome supported by a warming breakfast greeted the 30 Scholars who joined us at Cowell Clarke on a cold August morning for what on paper might have seemed like a boring topic. Yet the Mind the Gap seminar on 24 August was anything but boring! Emilio De Stefano (ILF 2014), Director and Principal at De Stefano and Co, opened proceedings and introduced Cowell Clarke Director, Jamie Watts (pictured below left), who kicked off the seminar with a video of a construction site where a crane started to collapse, crashing into another and another like a very expensive set of skittles. If any minds in the room were not focused before, they were now. Jamie explained the practical implications of the difference between common law obligations and the provisions of a contract, and they are profound. Jamie outlined that insurance policies will normally only cover common law risks. He suggested ways that liability can be broadened and narrowed with examples through contract wording. He explained how people can become unknowingly trapped because they agreed to do a particular job without realising they had committed to a contract that added extra responsibility.

Simon Landrigan (pictured below right), Senior Adviser, Insurance Advisernet, continued describing how normal insurance policies operate on a claims-made basis. This means that if an issue arises from work done today, the policy that responds will be the policy in force when the event is first notified. In other words, it could be five years after the job was completed. There is a risk that insurers will reduce cover or raise prices in the meantime. Simon made it clear that the so called “all risks” policy can provide limited cover; another reason to be wary when taking out insurance.

Emilio summarised by saying that, in his view, it is important to involve your lawyer and insurance broker early, and that big dividends accrue from building a long-term relationship with both parties so they can understand your business and anticipate your requirements. Following the discussion, Scholars ensured the Q&A session was animated and informative. Jamie and Simon told me they were impressed by the active engagement of everyone in the room.  

I received two pieces of feedback after the event; one Scholar said it was the best seminar ever, and another said it was close to the best! High praise indeed. The following day, David Hart sent an email saying he was putting the lessons to immediate use. Thanks to our event sponsors, Cowell Clarke and Insurance Advisernet, for supporting such a brilliant event.   

Upcoming events

Lessons from the edge

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

• Dr Jana Matthews, ANZ Chair in Business Growth and Director at the Australian Centre for Business Growth, 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: This Thursday, 8 September *IN TWO DAYS* from 7am to 9am
Cost: FREE and exclusively for ILF Scholars
RSVP: Respond to the invitation sent by Suzi or email Suzi ASAP

ILF Annual Awards Ceremony

The annual awards ceremony is the biggest event on the ILF calendar and this year it marks its lucky 13th. The selection committee believes the 2022 Scholars set a record high in the standard required to qualify. The competition was so fierce there is little doubt that several applicants who were unable to be funded this year would have been offered a grant in prior years.

The wines on offer are being provided by wineries associated with new Scholars. They are high quality and are likely to extend your tasting range in a pleasant way. Coopers beer and soft drinks will be served if wine is not your thing. As always, the ILF likes to innovate in a measured way and this year for the first time you can invite guests by purchasing extra tickets at $95 each, which will just cover expected costs. Considering the function offers a premium combination of networking and food and drinks, the price compares very favourably with similar functions which charge double and more. We could offer extra free invitations, but if 50 per cent of Scholars only invited one guest the cost to the ILF would be $10,000 which is a medium size grant, and as explained above we have not been able to accommodate some very worthy candidates this year already. 

In addition to the two perpetual awards made last year, there are two new awards to be made this year; the Seeley International Imagineering Award which has already been announced, and an exciting new award sponsored by a fast-growing ILF Scholar company that will remain under wraps until it is announced on the night. Also under wraps is an innovative masterclass for new Scholars. If the feedback is as positive as expected, it is possible the provider will make a similar offer to current Scholars.  

The ceremony is at the Entertainment Centre for the first time in over a decade. Last time the awards were presented there by Sir Eric Neal, his chair slipped off the stage, smashing the back of his head into a plate glass window! Fortunately he is made of tough stuff and survived. Is fate being tempted as the awards ceremony returns to the Entertainment Centre for its 13th birthday?   

If you are interested in being among the first to know who has won the four awards, experiencing the launch of the new sponsorship and award, tasting elegant wines from both well-known and younger wineries and, of course, welcoming sensational new Scholars to the network, then RSVP immediately.   

If you have any questions call Geoff (0457 900 202) or Suzi (0407 189 116).  

Where: Adelaide Entertainment Centre, 98 Port Rd, Hindmarsh
When: 26 September from 5.30pm to 8.30pm
Cost: Free for Scholars and ILF invited guests; $95 per person for other guests

Formal invitations have been sent via Greenvelope. Please RSVP as soon as possible.

Save the Date: ILF Mentoring Program 

The closing function for the ILF Mentoring Program Season 3 will be held at Deloitte on 17 October from 5.30pm to 7.30pm. This does not mean the mentoring relationships cease. Christine Molitor has developed a new concept which simply signals that the formal part of the program is over.

Please save the date if you are a participant; invitations will be sent soon.

Business in Brief

Cyber guidance from Lloyd's

According to this Cybersecurity Dive article, rising ransomware attacks and higher payout demands are battering the insurance industry, leaving organisations exposed and vulnerable. The article cites July data from S&P Global Ratings that shows a 232% increase in ransomware claims from 2019 to 2021 and a 54% rate of non-payment for ransomware claims during the first quarter of 2022, up from 15% at the same time in 2019. It describes moves by Lloyd's of London to limit their exposure by excluding claims related to attacks by state-based actors.

Read the Cybersecurity Dive article. Image credit: Matt Cardy via Getty Images

Time to engage with quantum

The emergence of quantum computing has the potential to revolutionise business – and it could arrive sooner than many leaders expect. This short article from I by IMD explains the factors that chief technology officers and executives need to consider as they develop their quantum business plans.

Read the I by IMD article.

Dumb and dumber

If we did so badly in sports we would be mortified, says AMGC quoting a Harvard ranking of the Australian economy. The AFR concludes Australia is rich, dumb and getting dumber! A quick read from the Australian Manufacturing magazine summaries the situation.

Read the Australian Manufacturing article.

Taiwan invasion ‘highly unlikely’

This article from Sompo International details analysis from intelligence firm Dragonfly that suggests there is an “unlikely” 25 per cent chance that China instigates a full blockade of Taiwan, with a 45 per cent likelihood that relations between China, Taiwan and the US return to pre-crisis levels.

Read the Sompo International article.

The deal on DAOs

Ever heard of a Decentralised Autonomous Organisation (DAO)? According to this In the Black article, DAOs are generally blockchain-based community organisations where members purchase tokens that carry voting rights. Click the link below for insights into this new era of corporate governance.

Read the In the Black article.

Scholars in the Media