MARCH BULLETIN

Victoria McClurg stands out from other Barossa winemakers. Instead of producing world-famous wine, she now creates
award-winning cheese.

CEO's Report

Last month the ILF Board worked at finding my replacement while Suzi and I prepared for the implementation of the Zoho CRM system and planned ILF Scholar activities for later in the year. You will see below that the date of the showcase event has now changed to April 5 following a request by the ILFSN Committee and new functions member, Emilio De Stefano (ILF2014). Emilio is working overtime to ensure you'll be thrilled by the event. It's being held at Lumination, with Brightstar Brewery located in the same building and open for those who wish to linger longer. Numbers are strictly limited so please book early to avoid disappointment. It has been a busy time for Scholars as evidenced by increased activity for individual Scholars on the promotions, resignations and new appointments fronts, as well as reports of booming business demand tempered by a lack of suitable staff. If you attended the culture training last May, I hope you have brushed off your notes!

Out and about

• I hosted a breakfast with guest speaker Bronte Eckermann (ILF2019) – the man behind Zings flashing cricket bails and stumps. Bronte tells a fascinating story in a captivating way and I recommend him for any event where you want to inspire and enthral an audience. There were a number of requests for a copy of his top 10 mandatory commercial criteria for success; mandatory because all points must be addressed or the product will likely fail. We've reproduced this list below:

• I attended the first ILFSN Committee meeting for 2023 and the last meeting chaired by David Hart (ILF2014), who was thanked for his sterling efforts and the achievements during his term.
• Emilio De Stefano (ILF2014), Suzi and I attended a showcase planning meeting at Lumination with William Buck. The learning lab where the event will be held has amazing facilities and the onsite café, 35 Stirling, has offered excellent food choices, including some Scholar-produced options.
• I met with Patrick Smith, Executive Director of People and Culture, at the Women’s and Children Hospital. With the hospital creating an executive development program, Patrick confirmed ILF insights have been very useful; a nice endorsement of what we do.    
• Suzi and I attended the Scholars' cyberattack seminar (covered in a separate report). Those who attended went away with a kitbag of practical and easily implementable ideas. A special thanks to Alexie Fey (ILF2020) who coordinated the speakers.
• The ILF Investment Committee and Board met, with the big decision to approve the implementation of the Zoho CRM system.
• I met Nicholas Begakis AO, Chair of Renew Adelaide. He is keen for Scholars with businesses in the start-up or scale-up phase to know that Renew Adelaide can provide rent-free space.
• I attended a "Food Business Model Innovation for the Green Economy" program seminar at Ai Group with Professor Göran Roos. As no ILF Scholars attended, I have since enquired about arranging a repeat, perhaps aimed at a wider range of industries. A key takeaway was that it's likely bunker oil for ships will be replaced by ammonia. Hydrogen takes more storage space than ammonia per unit of energy and ship engines need only minor modification to burn ammonia. Every port in the world already handles ammonia so the infrastructure costs to use hydrogen, by comparison, would be huge.

Beyond business

• Lisa and I scored an invite to the opening of the Main & Cherry cellar door at Chandlers Hill (pictured below). The building is an architectural gem with views to the sea; the Prosecco is superb and from all reports their other wines are equally excellent; and the food is brilliant. They even have a private dining area for functions.

• My brother Mark and his wife Vida stayed a week while they manned their Step Flex orthotic stand at the Caravan and Camping Show. As a long-time customer, I can vouch that their orthotics are excellent and much more affordable than the competition. Mark gave me a pass to the show which gave me a glimpse into what life could be like after the ILF if Lisa, who is not keen, can be convinced!
• We entertained two groups of friends on successive Saturdays, drinking enough wine that the yellow lid bin clinked when emptied into the East Waste recycling truck!
• Lisa and I went to a Greek lunch after the earlier festivities and enjoyed watching others do the Zorba while we put our feet up. 

My life in the Army

In the last bulletin I discussed challenges and rewards of leadership at the Melbourne University Regiment (MUR). During this period there was strong encouragement to do extra courses which lead me to complete promotion subjects for the rank of major. The four-week company commanders course at Singleton was fascinating. It combined a number of TEWTS (tactical exercise without troops) covering different phases of war being advance, assault, defence, and withdrawal. It was during these lessons I realised that the focus of our training was polar opposite to what a lot of non-military people suspect; over 90 per cent of what we were being taught was how to survive and avoid being hurt on the battlefield and less than 10 per cent was about how to hurt the enemy. This was confirmed many years later in a very different way while I was being trained to be a battalion commander, more on this another day. The Singleton course was very practical and l will never forget how they illustrated the cone of fire of a machine gun. Machine guns are the most powerful weapon in a rifle company so siting them is the most important task of a company commander. Machine guns are designed to spread bullets rather than fire all the rounds in one spot, hence the cone shape. After being fired, the rounds slow down and reduce altitude as air friction and gravity take hold. The illustration took place on a long spur line which had a slope that increased progressively and involved timber frames about 5m wide and 5m high, spaced one behind the other about 40m apart. The frames were filled with coloured balloons. When the gun fired the cone shape pattern of the bullets became clear as balloons popped and the way the cone followed the slope of the spur line was obvious. To this day I can look at a piece of ground and identify where I would locate guns if the need arose. This was an illustration of the adage, “a picture tells a thousand words” but also that a picture can create a lasting image.

Another course involved four weeks at Richmond Airforce base learning how to load aircraft. To fly efficiently and sometimes to fly at all, the load in a plane needs to be balanced from front to back and if the wings are below the fuselage, side to side balance is essential. That's why most military transport planes have wings above the fuselage. Dangerous cargo was a lengthy topic and how to secure loads with different straps and chains had to be understood. We had to plan loads including a Land Rover, a bulldozer, a field gun, jerry cans (full and empty) and boxes of cargo. At intervals the teaching staff would choose a student’s load plan at random and advise that the next day we would be loading a plane according to that plan and flying with it. We were given just enough time that afternoon to check the calculations of the plan. You can imagine how much higher the motivation was to ensure we got the plan correct when our lives in flight the next day depended on it. Luckily my plans passed the test when selected. 

National Mutual allowed an extra two weeks a year to attend army camps but all these courses plus regular MUR camps were chewing up eight weeks of leave a year so there was not much time for holidays with Lisa and our three children. In March 1980 the MUR commanding officer told me that it was my job to attend and take charge of the training camp that May. Lisa quite rightly told me that I had done enough army in the last year. The family had to have a fair share of my time and I had a choice between the camp or my family. When the commanding officer said that if I did not attend the camp I would not have a career in the army, I resigned and went on the inactive reserve. Rejoining some years later will be the subject of the next instalment.

Geoff Vogt

Scholar in the Spotlight

Victoria McClurg 
Founder and Director, Barossa Valley Cheese Company
Executive Program for Growing Companies
Stanford Graduate School of Business (USA), 2016

The Barossa Valley is synonymous with world-famous wine, and winemakers. But what sets Victoria McClurg apart is that she no longer makes wine; she makes cheese. Her artisan produce has won numerous accolades across Australia, including the Australian Grand Dairy Awards and the South Australian Tourism Awards.

Wine to cheese
After completing a winemaking degree at the University of Adelaide, I worked vintages in Sonoma and Bordeaux. It was in France that the idea of cheesemaking took hold and on returning to Australia, I followed my dream. When the opportunity presented itself to make authentic produce in a premium wine region, I wholeheartedly immersed myself in the world of cheese. Accordingly, the cheese I make isn't just any cheese: these are rare, authentically traditional varieties. They are handmade with a winemaker’s sensibilities and artisan skills in the picturesque town of Angaston using local milk from cows and goats. I am passionate about keeping cultures alive, not only the cultures in cheese, but the diversity of cultures across the community. I strongly believe the plethora of business big and small, and all individuals, create the unique tapestry of the Barossa.

Cyberattack recap

Written by Andrew Ramsey (ILF2019)

With much media attention surrounding recent cyber security events affecting  major organisations across Australia, it wasn’t surprising to see a strong attendance of ILF Scholars to this highly topical event. The business environment is constantly changing and the world of cyber security is yet another example of where leaders today are in a race to stay ahead of the risks which may arise, should the appropriate security measures not be in place. A special thanks to Alexei Fey (ILF2020), CEO of Comunet, for coordinating the event and the panel of speakers, which included:

• Paul Dugan, Principal, DMAW Lawyers
• Neil Slipper, Head of Cyber Security, Comunet
• Briston Talbot, Director, DuncanPowell DEM
• Simon Landrigan, Senior Adviser, Insurance Advisernet

Alexei assured us in his opening remarks that the session was not designed to scare those attending. Yet when listening to the facts and information shared by each of the presenters, one could only be alarmed by the growing risk and likelihood of a cyberattack. When it comes to the issue, we were advised: "it is not a case of if your business will be affected by a cyberattack, but when". It appears Benjamin Franklin's quote, "if you fail to plan, you are planning to fail”, is as relevant today as it was when the quote was first made. In today’s business environment, it is more than appropriate to remind leaders of the risks and responsibilities which exist from cyberattack.

Key takeaways from the session:

• Cyberattacks are on the rise, with most events going unreported.
• More than half of small businesses close after a cyberattack.
• Recent attacks on major organisations were not sophisticated.
• Cyber insurance is the last resort; it's better to build sound security.
• Take time to understand cyber insurance cover for better protection.
• Backups must be regularly reviewed and stored in multiple locations.
• Data and information security management processes must be sound covering collection, retention, protection and destruction.
• Have a well understood Data Breach Response Plan and ensure responsibilities are known.
• Demand more of IT service providers with regard to their cyber security credentials and capability.
• Planning cyber protection is not just about IT, it requires policies, practices and processes to be developed and in place.
• Train and remind staff of the risks and responsibilities; they're generally responsible for more cyber breaches than system weaknesses.
• Plan for a cyber event and practice your response.
• Cyber risk management expectations may be assumed so you must have evidence of systems, processes and training.
• In the event of an incident, immediately inform your insurer (ensure insurance claim management is within Australia).
• Insider threat management processes should be in place from the start of employment and maintained throughout employment career.
• Hacking is not as sophisticated as people perceive, hence the need to implement systems which mitigate the risks.
• It's comforting to know there is a one-stop-shop in the Cyber Alliance Group made up of Comunet, DMAW and Duncan Powell.

The shared experience of the speaker panel provided an outstanding overview of how challenging the cyber landscape is for businesses of any size, and at the same time armed us with information and knowledge to help plan improvements to the cyber security posture of our organisations. Once again, a special thanks to Alexei, the speakers and their respective organisations for not just sharing their experiences but for catering and sponsoring the event.

Upcoming Events

Scholars Network Food and Wine Showcase

Back by popular demand, this annual event is a great opportunity for ILF Scholars to showcase their fabulous fare while mingling with fellow Scholars. Expect to 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 prizes.

When:  Wednesday, 5 April, 6pm-8pm
Where: Lumination, 37 Stirling Street, Thebarton
Sponsor: William Buck

Tickets are selling fast, email Suzi if you haven't received your invitation.

ILF Info Night

Our annual information night provides the opportunity for prospective candidates to seek 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. Formal invitations will be sent soon; for now please diarise the date.

When: Tuesday, 2 May, 6pm-8pm
Where: Lumination, 37 Stirling Street, Thebarton

Save the Dates*

• 16 June: Business Value Maximisation – Half day training
• 18 August: How businesses succeed in difficult, uncertain times
• 25 September, 5.30pm to 8.30pm: ILF Grant 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

Sending Teslas to salvage

Deciding whether you can afford a Tesla? Based on this Reuter's article, it pays to consider the insurance costs. CEO Elon Musk says Tesla is making design and software changes to lower repair costs and insurance premiums, yet many low-mileage Tesla Model Ys that have been in crashes are still being sent to salvage auctions as insurance carriers deem them too expensive to repair.

Read the Reuter's article.

Respect@Work: The new act and next steps for workplaces

The new Respect@Work laws place a greater onus on leaders to promote a culture of anti-bullying and harassment. The legislation, which comes into effect later this year, pins responsibility on senior leaders and board members to adopt a zero-tolerance policy towards bullying, harassment and discrimination. In this article, Executive Director of Women on Boards Claire Braund shares her key lessons and tips to help boards meet the new obligations.

Read the Governance Institute of Australia article.

Global kidnapping on the rise

Global reinsurance broker Gallagher Re offers a timely warning for those doing business overseas on the risks of kidnapping. Referencing a report by security consultants Control Risks, the article says the average global ransom demand increased 43% from $259,913 in 2019 to $368,901 in 2021. Most at-risk are expats and regular visitors, with current hotspots including:

• Central & South America, Caribbean: Mexico, Honduras, Venezuela, Haiti, Colombia
• Africa: Libya, Niger, Nigeria, Mali, Burkino Faso, Sudan, South Sudan, DRC, Somalia, Egypt, South Africa, Mozambique, CAR, Côte d’Ivoire, Cameroon
• Middle East: Yemen, Syria, Iraq
• Central & South Asia: India, Pakistan, Afghanistan, Philippines.

Read the Gallagher Re article.

Enter the next-gen robot

Automation advances empowered by artificial intelligence, coupled with an endless labour shortage, provide opportunities for more mobile, purpose-built robots in manufacturing and logistics, according to Electronics Industry Development Adelaide (EIDA). The article from EIDA's March newsletter says these next-gen robots will be able to operate free of cages and interact with humans and other robots.

Read the EIDA article.

Best time of day to exercise

We all know a healthy body promotes a healthy mind and allows us to operate at peak capacity, but recent Skidmore College research published in the journal Frontiers in Physiology reveals the ideal time of day to exercise based on your gender and goals. The study suggests that for men, evening exercise lowers blood pressure and the risk of heart disease while for women, exercising in the morning reduces belly fat and blood pressure.

Read the Scimex article.

Scholars in the Media