MAY BULLETIN

Meet Steve Todd of Kay Brothers Winery, get up to speed on global business news and save the date for our latest events.

CEO's Report

I imagine the series of short weeks has made your April seem more jam-packed than the standard month. This certainly rings true for the ILF. Last month the board met at PMB and toured the plant with ILF members including David Hart and Anthony Kittel. PMB builds batteries for submarines and supply navies around the world. Significant growth has resulted primarily from heavy R&D investment, placing its products among the world’s best. Thanks to Stephen Faulkner for hosting and inspiring us. The agenda for the board meeting was lengthy, with the item of greatest significance being the redefinition of the ILF's purpose and vision. This is necessary to enable the objectives clause of the constitution to be redrafted, as required by the Australian Charities and Not-for-profits Commission. The new versions are:

Purpose

The Industry Leaders Fund (ILF) purpose is to grow the value-adding sector of the South Australian economy by developing the pool of courageous quality management talent at the top CEO and MD level in businesses. This will genuinely expand the state’s economic base by generating employment growth, creating wealth and establishing a strong head office mentality in SA. This is achieved by offering grants to existing and up-and-coming leaders to lift their skills and to accelerate their development through study. The ILF also supports continuous improvement in these leaders by offering ongoing professional development opportunities and training seminars, and encouraging them to share their knowledge, experience and ideas.

Vision

To maximise the economic contribution to SA as outlined in the purpose while prudently managing total cash flows and the investment portfolio to ensure the fund value keeps pace with inflation over the long term, so the fund’s ability to operate in perpetuity is safeguarded.

Meanwhile, Suzi and I have been busy preparing for tonight's (3 May) information night. Thanks to the Scholars who have agreed to share their ILF journey with potential applicants, provide course choice insights and inspire those who are wondering if they should apply.

We now have 19 grant applications, 60% of which are likely competitive. The majority who are not competitive are good leaders but don't work in the ILF's definition of a wealth-creating industry. Applicants need to be working in an industry that will genuinely grow the size of the SA economic pie, and they need to be a CEO/MD or have the aspiration and potential to get there. Hopefully our new purpose and vision statements will help make this clearer.

Suzi also met with Andrew Downs at SAHMRI to finalise arrangements for the culture training event on 16 May. It's all about how to retain, attract and motivate staff in the face of the Great Resign. According to numerous surveys, this is the number one challenge for businesses in Australia right now. 

Out and about

During April I enjoyed:

• the ILF season three mentoring midterm function, which has been summarised in this edition by Paul Moore (ILF2021).
• the Impact Awards as a guest of Seth Thuraisingham (ILF2018) who is a stalwart of the organising committee and through Consilium is a Gold Sponsor. The finalists included Dominant, Damien Rankine (ILF2020), and Seed Terminator, Nicholas Berry (ILF2019), along with several other companies that meet the ILF definition of a value-adding industry. 
• the EY Entrepreneur of the Year Awards where David Fogarty, founder of the Oodie, was the SA finalist. It was the first time I've been to a national function linked by video to interviews in each location.
• an Australian Industry Group cocktail function with guest speaker Penny Wong. Penny gave interesting insights and confirmed my view that she's the ultimate politician.
• a cocktail function with Simon Birmingham as guest speaker. Simon is clearly a statesman and, in my view, a potential Prime Minister.
• an Australia Israel Chamber of Commerce business lunch featuring Julie Bishop. She has not lost any of the drive and panache which drove her success in the political arena. She believes the Ukraine war will go on for many months and we have a real problem in the Solomon Islands.        

Aside from these events, I met with Patrick Power who informed that he has regularly been to Sydney since the border opened and is hearing from many businesses that they are planning to move to Adelaide as doing business and finding employees in Sydney is too hard. He contrasted this with their attitude five years ago when he was quizzed about why he'd want to stay in Adelaide! This says to me that the Great Resign threat is going to increase here, further highlighting the relevance of our culture training day on 16 May.  

Scholar Success

This month’s Scholar in the Spotlight features Steve Todd (ILF2012), GM of Kay Brothers Winery and Chairman of the Workers' Educational Association.

Further, we were delighted to hear that 2014 Scholar Dr Sarah Cannard has been named Female Space Leader of the Year at the prestigious Australian Space Awards 2022.  Michael Hickinbotham (ILF 2020) was awarded the Australian housing industry’s highest honour from the Housing Industry Association while REDARC CEO Anthony Kittel (ILF2010) has been inducted into the Australian Automotive Aftermarket Association Hall of Fame.

Diary Dates  

Save the date for these events and scroll down for more details:

• tonight's grant information night – we hope to see you there!
• culture training on 16 May with a focus on managing staff shortages
• a mergers and acquisitions seminar on 17 June
• the inaugural ILF showcase networking night on 28 July at Mitsubishi Motors' new Australian mechanics training facility
• an indemnity and contract risk management seminar in August
• an Ai Group lunch with Professor Göran Roos on 11 May (ILF scholars get discounted tickets!).

Hot topics

There is a lot of publicity about the Great Resign, with the three articles in this edition providing useful background for our upcoming culture training. Another topic worth mentioning is about a new flexible battery that seems to solve all the problems of current battery technologies. Finally, I saw an article which explains the value of governance in beautifully simple language.

Beyond Business

Thankfully, April was a lot quieter than Mad March!

• On 9 April Lisa and I attended a dinner concert, Quintette du Hot Club de Paris, featuring Julian Ferraretto on violin, three guitarists and a big bass playing jazz in the style of Stephane Grapelli and Djazngo Reinhardt. I was asked to be the MC on short notice and studied Pink Panther movies to perfect my French accent! Judging by the mirth in the audience I'm not sure that was a good idea. Accents aside, it was a wonderful night.
• On Good Friday we watched Noah’s basketball team get beaten, despite his best efforts.
• On Easter Sunday we hosted 26 of the Butts clan to a barbeque lunch. When Lisa first arrived in Australia from Peru she was welcomed by Carmel and Brian Butts who treated her like a daughter. Their four children and their husbands/wives came to Adelaide from Albury and various points in Victoria for Easter to barrack for the Crows and particularly for the full back, Jordan Butts, who is a grandson of Carmel and Brian. The barbeque was a huge celebration after Saturday’s win over the Tigers in which the Tigers' full forward only scored two goals, one of which happened while Jordan was off the ground. Interestingly I learned that Jordan is related to the Power’s big Charlie Dixon at what I understood to be great great grandparent level. Our granddaughter Jill managed to take the sort of selfie almost every 11-year-old girl would dream of; side-by-side with a young handsome AFL footballer.
• 19 April marked our 50^th wedding anniversary, which we celebrated with a lovely dinner accompanied by Carmel and Brian Butts who gave Lisa away at our wedding.
• On 24 April we joined our son Marcus and granddaughter Vivienne at the Stanley Bridge Hotel and that was jolly good. For entertainment, someone decided to put on a three-car crash right in front of the hotel! Fortunately, the only injuries were to the panels of all cars involved and to the pride of the driver at the back of the chain. Afterwards we visited Woodside Cheese Wrights. Next door is a gin bar and just past that is Melba's Chocolate Factory which makes for a great family outing. On the same day I met Luna, Noah’s new dog, which as you can see looks ugly, but  has the most beautiful nature. There has been speculation that if she catches fleas her name might change from Luna to Lunatic!

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

Steve Todd
General Manager, Kay Brothers
Company Directors Course
Australian Institute of Company Directors, 2012

On a sweltering day in January 2001, Steve Todd and his family arrived in Adelaide with no job, a temporary house and a new language to learn! Looking back, he said it was the best thing he's ever done. Judging by his success, we can certainly see why. Learn more about Steve's journey from the other side of the globe to managing a family-owned winery in picturesque McLaren Vale.

Where it all began

"My career background was as an engineer/production manager in the food industry. Shortly after arriving in Adelaide, I started working at Balfours, the wholesale bakery at the time based in the city. Through circumstance I was soon asked to look after the large project of moving the bakery from the city to a new location in Dudley Park, all the while managing a multidisciplinary team and without production loss – exciting and educational times! From there I got my first general manager role running a small egg company. We had grand plans for expansion, all backed by investors and banks, but then the GFC hit and the world fell away. That was the first time I had to make people redundant, and the first time I was made redundant, as we put Plan B into action and sold the business. Fortunately for me a good friend recognised something in me and recommended me for a role as general manager of Scan Conversion Services. The IT business had two aspects; scanning invoices including data capture; and developing the software systems to process and handle those scanned invoices."

My initiation to the ILF

"The MD and I both knew we needed to restructure the business to facilitate a later sale of the scanning operations, but we had little experience in how to go about it. By chance, the MD had read an article about the ILF at the same time I was exploring professional development opportunities. Long story short, I was lucky enough to study the Company Directors Course run by the Australian Institute of Company Directors (AICD) with ILF backing in late 2012. The benefits were immediate as we implemented the learnings about corporate strategy and risk management reporting. The goal was to consolidate the scanning business rather than volume growth, which would come from the software side of operations. After two years, that part of the business was ready to sell and I was again made redundant! Given I knew this was about to happen, my next venture was already awaiting."

Introducing Kay Brothers

"Kay Brothers is the oldest family-owned McLaren Vale winery that remains under founding family ownership. Founded in 1891, the business has been through many trials including two pandemics, a couple of world wars and all the normal issues that agriculture throws at a business! My role, as the first non-family member to run the organisation, was to bring a more corporate outlook to its operations. We embarked on a full board structure (thanks to the AICD course!); a comprehensive long-term strategy; a modernised customer offering at the cellar door; and improved winery operations. As someone who didn’t have any winery experience, the recognition of transferable skills again came to the fore. Kay Brothers is a very different business in look and feel to what it was eight years ago. There are exciting times ahead as we continue to adapt, as we have done for over 130 years, to changing markets."

Endless benefits

"I've been exposed to a wide business network full of smart SA business leaders, both through the ILF Scholars Network and membership of the AICD. This has been a great source of information, good counsel and enjoyment over the past decade and, particularly over the last two years, has been a massive help in my business and personal life. I've also been able to apply the knowledge from the course in my other roles as Chairman of the Workers' Education Association and as member-director on the board of the McLaren Vale Grape Wine and Tourism Association."

Take-home messages

1. Skills are more transferable than you realise; give new things a go.
2. Confidence in your abilities is vital.
3. Networks are vital – especially in Adelaide – build them.
4. Friendships come from shared experiences; be open.
5. Always look for personal development opportunities.

From Space to the Hall of Fame and housing's highest honour

The accolades just keep coming for ILF Scholars, with Dr Sarah Cannard (ILF2014) being named Female Space Leader of the Year, Michael Hickinbotham (ILF2020) winning the housing industry's highest award, and Anthony Kittel (ILF2010) being inducted into the Australian Automotive Aftermarket Association Hall of Fame.

Dr Cannard (pictured), Nova Systems Senior Engineer and Project Manager, received the title at the prestigious Australian Space Awards 2022, where Colonel Pamela Melroy, Deputy Director of NASA, described her as having “unlimited potential as a leader and truly deserving of this recognition”. Dr Cannard has been central in establishing the Australian Remote Operations for Space and Earth, which is now a leading organisation promoting and growing space capabilities in Australia. With ILF backing, she studied an accelerated development course for managers at Melbourne Business School.

Meanwhile, Michael Hickinbotham, Managing Director of the Hickinbotham Group, received the Housing Industry Association’s (HIA) 2022 Sir Phillip Lynch Award of Excellence last month. Michael will soon commence his Owner President Manager Program at Harvard. We can’t wait to see how much he learns and grows from the experience. 

Last but not least, REDARC CEO and Manging Director Anthony Kittel has been inducted into the Australian Automotive Aftermarket Association Hall of Fame. Anthony was one of the first two ILF Scholars in 2010 and completed the Harvard Owner President Manager Program. He was the inaugural recipient of the ILF’s most prestigious award, the Colin J Peters AM Memorial Award, in 2020.

Get in quick! Grant applications close this month

Just a few weeks remain to get your applications in – or to encourage your peers to apply – for our 2022 study grants. With funds of up to $50,000 available to successful candidates, you or someone you do business with could study at some of the best business schools in the world.

As mentioned previously, scholars will also stand a chance to win the inaugural Seeley International Imagineering Award, which will be awarded for the first time to the scholar with the most innovative engineering approach to manufacturing business. It joins the David B McNeil Award for the scholar attending the University of Adelaide’s Transformative Leadership Program who shows the most potential to contribute to employment and wealth generation in SA, and the Colin J Peters Memorial Award for the most outstanding scholar.

This year, easing Covid restrictions will allow international travel for up to 60 scholars who have delayed their study since 2019 to such institutions as Harvard Business School, INSEAD Singapore, Oxford’s Said Business School, Stanford Graduate School of Business and MIT.

Applications close May 31. See the website for eligibility criteria.

Upcoming events

Tonight's the night! Gain study advice at our info night

Are you attending tonight's information night? It's a great way for prospective candidates to gain advice from education bodies, Scholars and ILF board members on their future course. As an existing Scholar, you might also find another course to study in the next chapter of your success story. Ample food and drinks will be served so you won't go home hungry or thirsty!

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. 

Where: ILF, Level 1, 45 Greenhill Road, Wayville
When: 3 May from 6pm to 8pm (please email Suzi to RSVP)

Business lunch with Professor Göran Roos

Want an up-to-date view on the effects of the Russia sanctions regime, the Ukraine war, China's lockdowns and ongoing COVID ramifications? Ai Group SA is hosting a lunch with Professor Göran Roos, who will explore these issues as well as global shifts, world supply chains and what you should do to respond. Nick Champion will also attend, providing a great opportunity to meet the new Minister for Investment and Trade.

Where: Balcony Room, Hilton Adelaide, 233 Victoria Square, Adelaide
When: 11 May from 12.15pm to 2pm (session starts 12.30pm)
Cost: $99 (plus GST) for Ai Group members and ILF Scholars; $149 (plus GST) for non-members. Tables of 10: $900 (plus GST) for Ai Group members and ILF Scholars; $1400 (plus GST) for non-members.

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 potential. This is likely to become a serious issue for us as more businesses move from Sydney because they can’t access staff. Our guest speaker, James Begley, CEO of Pickstar (winner of the Innovator Award at the 2021 MYOB Smart Company Awards), will explain the challenges his business has faced. He will outline how he set the tone from the top and managed culture for 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 Alexei Fey (Comunet), Hollie Coleman (Grant Thornton), and Michael Peachey (SA Homecare Therapies)
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).

Check your spam folder if you have not received your invitation; there are still some vacancies so get in quick.

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

Mergers and acquisitions seminar

The speakers at next 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 at 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

Formal invitations to follow.

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. 

Scholar businesses who have donated so far include: Gelista; Mitsubishi Motors; 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; Gibson Wines; Casarosa Almonds; Robern Menz; OTR; Allin Towbars; Cup and Carry (Detmold); Brayfield Park; North Adelaide Dental Care; and Spendless Shoes.

If your business isn't mentioned it may be that we're still catching up. The full list will be included with your invitation. Please 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

Mentors and mentees 

Written by Paul Moore (ILF2021)

More than 20 Scholars gathered at Deloitte to hear from a panel of current mentors and mentees as part of the April mid-term session of the ILFSN Mentoring Program. In a night focused on learning and growth, Deloitte partner John Rawson kicked off with a discussion about Deloitte’s turbo-charged graduate intake program and the importance of mentoring at Deloitte, before handing over to MC Christine Molitor (ILF2017). Scholars were then treated to valuable insights and practical tips from the expert panel of mentors and mentees alike.

Mark Nykiel, (ILF2016), CEO Asia Pacific for Aliaxis, talked about how important it is for mentors to go on the journey with the mentee to understand their goals. Mark’s mentee Ellen Wundersitz (ILF2021), Founder and MD for Spacecraft Joinery, shared how Mark supplies practical support through sample templates and tips that support her profitability improvement goals.

Andrew Downs (ILF2013), Founder and Executive Director of SAGE Group, discussed the concept of coaching versus mentoring, and shared the personal value of reverse mentoring. Eric Ryswyk (ILF2021), Chief Strategic Officer of Codium, revealed how valuable it has been for him to have Andrew share his wealth of experience, and mistakes.

Anne Hinton (ILF2014), former MD/CEO of TGR Biosciences, talked about how important it is for the mentor to be a councillor and support the mentee in finding their feet in a new role. Dr Tamara Leclercq (ILF2021), Senior Project Officer for Adelaide Biomed City, who unfortunately couldn’t attend the event, pre-shared how valuable it was for her to have Anne’s support in considering what she wanted from her role in a holistic manner.

The key messages were:

• mentees wouldn’t have sought a mentor without the ILF matching them 
• for mentoring success, it’s crucial to set aside the time to meet
• mentoring is not just for practical operational support; it also considers the mentees personal aims and goals
• the mentor stands to learn just as much as the mentee.

Thanks to Christine Molitor for her excellent facilitation and to John Rawson and Deloitte for assisting the ILF to establish the program and host the event. 

ESG advice from DMAW Lawyers

DMAW Lawyers has created a flyer and short video for those who missed our Environment, Social Responsibility and Governance (ESG) seminar.

The firm has also offered to provide a complementary presentation to the board/leadership team of Scholar-affiliated businesses on the topic of ESG – what it is, why it's important, and how the legal landscape is evolving to better incorporate ESG principles in business. The presentation also details the growing legal requirements of ESG and outlines various non-legal incentives, including increased profit and improved social licence to operate.

If you're interested in a presentation, contact DMAW Lawyers senior associate Nicole Mead on 8210 2270 or nmead@dmawlawyers.com.au

Business in Brief

The Great Resignation: why your staff are moving on

This Harvard Business Review article, distributed by The Australian, explains the five main factors leading to voluntary resignation: retirement; relocation; reconsideration; reshuffling; and reluctance. Understand these driving forces to combat a mass exit from your business. 

Read the article.

SMART work: how to beat the Great Resignation

This article from The Australian describes a model developed by Curtin University Professor Sharon Parker called SMART Work Design. In the acronym, S stands for stimulating; M is for mastery; A is for agency (autonomy); R is for relational; and T is for tolerable demands. According to the article, if you get all five elements working together, you're much more likely to have happy, mentally healthy and productive workers. 

Read The Australian article.

Save staff with learning investment

Training that tunes-in with employee needs and values reduces their desire to resign, according to this article published in I by IMD. The article states that employees need to be involved in choosing the training, and it may be more effective if it's not solely related to productivity. Moreover, the training should be offered in-house and not externalised.

Read the article.

Paper-thin, biodegradable battery 

This Silicon Republic article details how scientists in Singapore have developed a super-thin, wafer style flexible battery that is non-toxic and breaks down in just one month. The researchers at Nanyang Technological University hope the new battery could provide a sustainable form of power for flexible and wearable electronic systems.

Read the article.   

Exposing corporate governance myths

Governance is often deemed too hard, too complicated, counter-productive and a waste of time. This short read by the Governance Institute of Australia gives three tips to meet the basic principles of corporate governance: act honestly; act with reasonable skills and care; and don't make a secret profit or take confidential information. It also explains why corporate governance is important for all organisations, from micro businesses to bigger companies.

Read the article.

Scholars in the Media