Posts tagged ‘export’


Brexit reminds us that we need to take a lead in making globalization fairer

28.07.2016

Brexit was an interesting campaign to watch, and there’s not too much I can add that hasn’t been stated already. I saw some incredibly fake arguments from Brexit supporters, including one graphic drawing a parallel between the assassinations of Anna Lindh in 2003 and Jo Cox MP, saying how the murder of the former led Sweden to remain in the EU.

   The trouble with the graphic is that the only thing it got right was that two women were killed. Sweden wasn’t having a referendum on whether to leave the EU, it was about whether it should adopt the euro. The closest British parallel would have been when then-PM John Major negotiated the Maastricht opt-out in 1991. It also claimed that the polls were for leaving; notwithstanding that that wasn’t what the Swedes were voting for, the polls for and against adopting the euro were roughly neck in neck, though the wisdom was that the pro-euro camp would win. By the weekend, the result was that Sweden would keep the krona.
   When I argued with some pro-Brexiters about this, they, like most pecksniffians, demanded I check my facts. I didn’t have to: I have a memory that goes back further than one month, and unlike them, I know what went on in their own backyard because, in 2003, I kept my eyes open.
   I should point out that I am not summarizing all Brexiters as dimwitted Britons who wanted Johnny Foreigner to go home. I count among my closest friends someone who voted leave, and for very substantial, well thought-out reasons. He felt that the European Union had become an unwieldy bureaucracy which benefited Britain little, and while I felt the benefits outweighed the detriments, I respect his opinion and his vote. At least it was considered, and at least it wasn’t one that was based on the ramblings and rants of Farage, Johnson, Gove et al.
   Appealing to nationalism, as the likes of Farage did, is a cheap trick in politics: it stirs a wave of nostalgia, and people might love chanting at how great their nation is, but it doesn’t address the core issues that put them into the poo to begin with. Of course the UK has a great deal to be proud of; but like many countries (including ours) the globalist technocratic agenda are what have made things untenable for a growing part of the population. It’s why real wages haven’t risen yet certain corporations profit aplenty; it’s why we work more hours today than we ever did, despite futurists of a generation ago predicting all this leisure time that we would all have thanks to automation.
   But is retreat the right thing to do? The remain camp believes that it wasn’t: to influence Europe you must be in Europe. It wasn’t that long ago that not being in Europe was fatal to British exports—the failure of the British motor industry, for instance, was in part due to its late recognition that the UK needed to be part of the EEC or, at least, produce vehicles there. Globalization’s positives should be the free movement of people and of capital; and economic union to permit that greater freedom seems a sensible thing to pursue, not to run away from. The trick is how to make this work for everyday people, the growing number who are impacted by globalist forces; once there were few, now few escape them. It is, then, the role of government to either protect those who are most vulnerable, to champion (either through private enterprise or on its own accord) real innovation and industry that can create jobs, and to cut through the BS where both public and private enterprise simply reinvent the wheel from time to time, putting lipstick on the bulldog.
   I am ambivalent about it because I’ve seen our own governments, National and Labour, be particularly weak when it comes to dealing with globalization, succumbing to foreign takeovers and allowing the little guy to be run over. The deals haven’t been good for New Zealand in many respects, a small country that believes in its place in the first world but which can be deluded about this very fact. Our economy just isn’t that solid to take it on the chin. Look at our banks, mostly foreign-owned and more unreliable than ever: remember how 40 years ago cheques would take 24 hours to clear? Yet now our computerized systems take three to five working days? Insiders tell me this is the consequence of less reliable Australian systems being foisted upon us; so much so that we have a wire transfer that has been taking weeks, and no one knows where the money has gone. Just how do you misplace tens of thousands of dollars? Why do we assume Australian bankers are smart enough to answer? And those who question such agenda don’t get much truck in a media landscape also dominated by foreigners: I’m looking at one newspaper publishing group at the least. The ways of the big countries are not always the best—yet somehow the powers-that-be in this country have been hoodwinked by this consistently since 1984. I can’t understand it, and my initial reaction when there is such a lack of logic is to follow the money.
   Brexit has made me refine my thinking: I might not like a system where New Zealand’s the little player that doesn’t benefit from a level playing field, but at the same time I believe we need to find ways to influence the globalist game for the better. We love looking at Scandinavian countries because of their comparable size. They may have higher taxes but at the same time they don’t seem to balk at innovation for the greater good; they believe in the freedom of movement of capital and of people, and, despite their general humility, they actually aren’t afraid of creating global companies that take on the rest of the world. Look at Vattenfall or Statoil. We might not like Statoil for what it wants to do to our own environment, but we do have to ask what our equivalent is. We lost our lead in hybrid cars, which we held for most of the 1980s, but it’s an example of what we can do when government and private enterprise cooperate on something that is future-oriented. What’s the next big thing? Is it renewable energy tech that we can export? There are companies here already doing frictionless exports, and more need to be encouraged. Government shouldn’t try to create groups of them or force mergers upon them; that can be left to the market. But there needs to be a vision or a direction that we take to create a new brand for our country where people naturally think: innovation for the greater good = New Zealand. And, maybe, to go with that, a fairer version of globalization can emerge, certainly one that is not coloured by the next quarterly result demanded by Wall Street.
   Yes, there is some national fervour involved here, too, but applied correctly, it won’t be false flag-waving that’s dependent on the past. I’m all for being proud of your country when the victories are real and measurable—like on the sporting field. There it’s real, and it’s often about the next game or the next season: it’s future-oriented, too. With Brexit, I can’t see the vision; and the most visible foreigner among this, the Turkish-American politician, Boris Johnson, hasn’t communicated one that I can discern.
   And maybe this confusion is the opportunity we need for New Zealand.
   After the UK abandoned the Commonwealth markets in favour of one right next door, our country found new export markets, so much so that the UK accounts for 3 per cent today. Even in 1973, when it was 40 per cent, it had been falling consistently for half a decade, if I recall correctly, and the notion that Britain would reach back out toward the Empah for trade is fanciful at best.
   Being someone who has enjoyed looking at world history play out through maps, ever since I discovered a book on the subject as a third former at Rongotai College, it hasn’t escaped my thoughts that this is a further retreat for the UK in terms of its global influence.
   So who’s on the rise? It might be us. The centre of the global economy has been shifting eastward in recent times and we’re well placed to take advantage of it. We’re part of the Anglosphere so we bridge the past, where it was the dominant global culture, with those trading partners who might be on the horizon. But it has to be real. We’re nimble enough, and I can’t see why we’ve been so fascinated with apeing the US and the UK for so long. Once again we need to set our own direction: we have a culture that’s ready for it with a greater sense of identity than we’ve ever had. I just wonder if we have a government, local or national, courageous enough to embark on this.

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Posted in branding, business, China, culture, globalization, marketing, New Zealand, politics, social responsibility, Sweden, UK | No Comments »


It’s taken me a long time to blog about sheep

11.04.2015

Living in New Zealand, of course PETA’s latest graphic (on the right) is going to get a few of us commenting. (The above comparison graphic was found on a US Facebook user’s page.)
   A friend of mine, in the US, rightly questioned whether he could believe New Zealanders on this, because we have an interest in ensuring wool exports continue. PETA, meanwhile, is a non-profit set up for the welfare of animals.
   I’m glad he questions, because without people like him, we would be accepting things told to us via media without analysis. He is right to call me out on this. We should be doing it more often, in a civilized atmosphere.
   Putting aside first-hand eyewitness accounts of sheep-shearing, where are the interests?
   PETA’s interests include its US$51 million revenues (its own figures) and the US$47 million it says it needs to keep itself going each year.
   In comparison, the New Zealand Wool Board, which is part of the state and funded by a levy, lost NZ$270,000 according to its latest annual report, on revenues of NZ$11 million. Annual expenses are NZ$3 million.
   You can take the NZ numbers and shave roughly about a quarter off them to get US dollars.
   For our wool board to do our work and keep our wool industry going, it requires about 5 per cent of what PETA does per annum.
   What interests would be served by our wool industry if sheep were left in the state PETA claims is typical? None. It’s in the industry’s interests to make sure that the coat is shorn carefully so that the sheep can grow a new coat for the next season. The medical bills from having a sheep that badly injured would far outweigh anything a farmer could get from wool.
   Running PETA is an expensive business, even if it is a non-profit, and it relies on these campaigns to get contributions.
   I believe in animal welfare, and in many cases, PETA does a good job of highlighting important issues. We’ve even received a ‘Certificate of Appreciation’ from them for working with them on causes where we see eye to eye.
   But occasionally, you have to take its messaging with a grain of salt, and this appears to be one of those times.

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Posted in business, internet, New Zealand, USA | No Comments »


Read the report: Deloitte actually doesn’t blame migrants for increased corruption

26.03.2015

Deloitte has published a report on the increasing corruption in Australia and New Zealand, which Fairfax’s Stuff website reported on today.
   Its opening paragraph: ‘An increase in bribery and corruption tarnishing New Zealand’s ethical image may be due to an influx of migrants from countries where such practices are normal.’
   The problem: I’m struggling to find any such link in Deloitte’s report.
   The article paraphrases Deloitte’s Ian Tuke perhaps to justify that opening paragraph: ‘Tuke said one working theory explaining the rise was the influx of migrants from countries such as China, which are in the red zone on Transparency International’s index of perceived corruption,’ but otherwise, the report makes no such connection.
   The real culprit, based on my own reading of the report, is the lack of knowledge by Australians and New Zealanders over what is acceptable under our laws.
   Yet again I see the Chinese become a far bigger target of blame than the source suggests, when we should be cleaning our own doorstep first.
   The Deloitte report acknowledges that there is indeed a high level of corruption in China, Indonesia, India and other countries, making this a big warning for those of us who choose to extend our businesses there. It’s not migration to New Zealand that’s an issue: it’s our choosing to go into these countries with our own operations.
   It would be foolhardy, however, for an article in the business section to tell Kiwis to stop exporting.
   But equally foolhardy is shifting the blame for a problem that New Zealand really needs to tackle—and which we are more than capable of tackling.
   The fact is: if we Kiwis were so clean, we’d uphold our own standards, regardless of what foreign practices were. Our political leaders also wouldn’t confuse the issue with, say, what happened at Oravida.
   When faced with a choice of paying a kickback or not in the mid-2000s when dealing in eastern Europe, our people chose to stay clean—and we lost a lot of money in the process.
   To me they did the right thing, and I credit less my own intervention and more the culture we had instilled.
   Hong Kong cleaned up its act in the 1970s with the ICAC, and I have said for decades (since the Labour asset sales of the 1980s) that New Zealand would do well in following such an example. Why haven’t we?
   Perhaps if we stopped shifting the blame and followed the recommendations in the Deloitte report, including shifting corporate cultures and instigating more rigorous checks, we can restore our top ranking in those Transparency International reports. But this has to be our choice, not a case where we are blaming migrants, for which there is little support in this very reasonable report.

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Posted in business, China, culture, Hong Kong, India, leadership, media, New Zealand, publishing | No Comments »


Campaign update: videos three to five

22.08.2013

I have been posting these on the videos’ page as they became public, but maybe I should have added them to this blog, too, for those of you following on RSS. The multilingual one seems to have had a lot of hits. They have been directed by Isaac Cleland, with Khadeeja Dean on sound. Lawrance Simpson was DOP on the first one below.


This one was important to me, as I sent in a submission on the local alcohol policy, leaning more in favour of the hospitality industry’s submissions while acknowledging the need to reduce harm.
   Highlights from that submission: ‘The hours feel very limiting as the harm has not come from the opening hours of on-licensed venues, but from pre-loading. Most venues are responsible and safe based on my own custom. A blanket 7 a.m.–­5 a.m. with council officers using their discretion on venues failing to meet the highest standards, then restricting them back to 3 a.m. would be a better approach, while acknowledging the changes at the national level.’
   ‘I remain unsure whether harm will be decreased. I have listened to the police and hospital submissions, and I have great sympathy for them. However, if we know pre-loading and drinking education to be the greatest issues, restricting on-licence hours will not help. If it forces people to drink more at home rather than frequent the city, then that doesn’t actually decrease harm: it makes harm harder to police because it is shifted to the suburbs. It adds to the cost of health services because of travel time and the inability for those harmed to get immediate help.’
   ‘There are some good aspects in its response to the Sale and Supply of Alcohol Act 2012—and it was right for Council to respond. The arguments on density and proximity are a good response to some residents’ concerns.’
   Finally: ‘My belief is that the root cause of a lot of our drinking culture comes from socioeconomic conditions and, especially with the young, a sense of disengagement and a pessimism about their futures. While it is not the purpose of the strategy, it is something that we must address as a city.’


Judging Miromoda for the fourth (I believe) time, this time at Pipitea Marae. It must have been the first time the te Reo portion of my address was longer than the English. I need to disclose that I am not fluent but I try to make a decent stab at it at every opportunity, for the obvious reason that it is the native language of this country.


Another beautifully shot and edited video from Isaac, this one has proved a bit of a hit on Facebook and has almost had as many views as my début 2013 campaign video that was released in April. I decided not to do Swedish—I can speak a little—and Taishanese, since they might be a bit too niche. The idea: if we need someone to push Wellington globally to help our businesses grow—and we accept that the innovative, high-tech and creative ones do—then doesn’t it make sense to not only elect someone with first-hand experience of those sectors, but can open doors readily, too, especially as the global economy shifts east?

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Posted in business, China, culture, internet, leadership, marketing, New Zealand, politics, technology, Wellington | 1 Comment »


Cities are, or at least should be, driving globalization

06.06.2013

My friend and colleague William Shepherd directed me to a piece at Quartz by Michele Acuto and Parag Khanna, on how cities are driving globalization more than nations—a theme I touched upon on this blog in March 2010. As he said, I had called it three years ago, though admittedly Acuto and Khanna have fleshed things out far better.
   It’s not just the fact that cities elicit less pluralistic feelings among the populationWellingtonians felt pretty strongly when PM John Key made his comment that our city was ‘dying’—but there are practical reasons for cities to lead the way.
   First, we can’t afford to wait for central government to take the lead on a lot of policies. When it comes to economic development, cities should be able to mobilize a lot more quickly. The idea is that cities are leaner, flatter and more responsive to change. The reality is that some are mired in bureaucracy, and if voters agree that that has to change, then I would love to see that reflected in this year’s local body elections. Based on what I’ve seen, you won’t find the agent for change within politics, however—they have had more than enough opportunity to voice this very view. This has to come from outside politics, from people who understand what cities are truly capable of, especially when they engage and realize their potential.
   Acuto and Khanna cite several examples where cities have had to go above and beyond what their national governments have provided, in the areas of security, climate change and academia. Even stock exchanges are merging between cities:

Stock exchange mergers testify to this changing geography of influence: the popularized link between New York and Frankfurt via the 2011 talks on the NYSE Euronext and Deutsche Boerse merger only hinted at a wider trend that, in the past two years alone, has seen negotiations between London’s and Toronto’s stock exchanges, and similar discussions between Sydney and Singapore, Chicago and Sao Paulo, Dubai and Mumbai or the Shenzhen–Hong Kong–Shanghai triangle, all of which indicate how global finance networks are being redrawn through emerging global cities.

   In my discussions with MBIE, the New Zealand Government has been aware of this trend, but other than the discussions about regional reform, very little of it has surfaced in Wellington. Yet the government has a focus on Auckland, and Christchurch will be state of the art once its rebuilding is completed. We have a perfect opportunity to use our inherent agility, if only we had our eyes on the prize, and moved forward rather than played politics, stuck with “think local, act local” thinking.
   Secondly, cities should find the task of marketing themselves less confusing. A nation-branding exercise, for example, hits a snag early on. When I quizzed Wally Olins about this many years ago, he identified a very obvious problem: which government department pays for it? Is this the province of tourism, internal affairs, foreign affairs, trade, or something else? A city should be able to establish sufficient channels of communications between its organizations and trust in one—in Wellington’s case, tourism—to handle it. If these channels are broken, again, it’s going to take some new blood and real change to fix them and inspire a spirit of cooperation. There’s a pressing enough need to do so, with a vision that can be readily shared. We need to think differently in the 2010s.
   Thirdly, cities can foster offshore relationships more effectively. New Zealand, as a country, has not done as well as it should in promoting itself in various Asian cities, for instance. In one major city, I have had feedback that New Zealand stands out for the wrong reasons, in not having its chief diplomat join other countries in celebrating a particular national holiday. We seem to be on auto-pilot, not being as active as we should. Yet, as Acuto and Khanna point out, almost all global economic activity is being driven by 400 cities. Wellington, especially, should be able to take the initiative and head to the world’s major cities, promoting ourselves and ensuring that the innovators and enterprises here can hook up with others. We can establish trade and cultural links more quickly if we go to the source. Many cities and provinces even have their own economic offices, so they expect such approaches: they want to work at the city level.
   And if we head offshore to promote our own, then we should expect that foreign direct investment can flow more effectively inward, too, having established that relationship.
   This all makes sense if you consider how democratization has changed the world we live in. On so many things already, we cut out the middle man: in printing, we no longer need to go to typesetters or plate-makers; online publishing has meant our words can go to the public on blogs; social media have allowed us greater access to companies and politicians. Air travel is more affordable than it was 30 years ago. Cities have the resources to engage with citizens and learn about their needs. Offshore relationships can be maintained between trips using Skype and other digital resources. The nation-state will remain relevant for some time, but cities can deliver more relevant, more specialized and more customized programmes in a more timely fashion. Now, do we have the courage to declare that we no longer want “politics as usual” this year?

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Posted in branding, business, culture, globalization, internet, leadership, marketing, New Zealand, politics, technology, Wellington | 1 Comment »


Getting ready for global

27.05.2013

I’ve known of this for some time through Medinge: the globalizing of The New York Times. This has meant the retirement of The International Herald–Tribune name, one which brand experts are divided on.
   On the one hand, the NYT doesn’t have it wrong. There are global newspaper brands already, namely those that have taken the opportunity of the internet, viewing it was a chance to build their goodwill, rather than as a threat. The Guardian comes to mind, and even the Daily Mail has become a well known international news source. The snobs must hate it. It’s obviously worked out that The New York Times‘ brand is stronger than The International Herald–Tribune’s, and in this globalized era, it wants to push only one.
   Others, meanwhile, seem to have regressed. The Times’s momentum has been lost, thanks to its paywall experiment, at the precise time others went on a growth spurt. The Daily Telegraph, which for the 1990s and a part of the 2000s was the source for online news, has fallen behind other dailies.
   What this century has shown us is the realization of global businesses, regardless of how large or small you are. If you don’t capitalize on things at an international level, you risk becoming an also-ran. Everything you do potentially reaches the whole planet, so why not build on that as part of your strategy at the very beginning?
   I may be affected by talks with my father at a young age about how foreign exchange worked, and my godfather first introduced me to the currency conversion tables in the newspaper each day when he wondered about my converting prices of cars from Motor into what they could cost in New Zealand. I must have been around seven at the time. From there, you get the inevitable idea that exports are good, just as valuable as selling to a loyal domestic market.
   As of today, as the image above shows, The New York Times is advertising its global edition to New Zealanders. That’s a Kiwi-targeted ad in the pic above from one of our advertising providers on Lucire. Yes, it is selling its tablet and smartphone access—and why not? Again, it makes perfect sense to capitalize on the available technology.
   The numbers say that portable devices outnumber traditional desktop ones. My feeling that things will converge even further, and later this decade, the æsthetic will be such that you won’t be able to tell the difference between the app and a traditional print publication in terms of the look.
   If older businesses hadn’t begun down this route earlier, then it will take a massive corporate cultural change to make it happen. Newer ones may well be at an advantage. The message remains clear: if you don’t treat all people, regardless of nationality, as someone connected to you, then you’re missing out.

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Posted in branding, business, culture, globalization, internet, marketing, media, publishing, technology, USA | No Comments »


In Wellington, the players need to change

23.05.2013

The below was written on April 22, 2013, in response to an article in The Dominion Post. It was offered to the newspaper as an op–ed, then to The Wellingtonian, but it was eventually declined.

The Dominion Post’s headline on April 22 confirmed what many of us knew after numerous friends and colleagues left Wellington over the last several years.
   Our population growth is below the national average, as are our employment and economic growth. In fact, the regional Wellington economy is stagnant.
   In 2010, I stated that we needed to look at our creative sector, and encourage creative clusters, to get Wellington’s economy back on track. Even then it was evident that the early 2010s were not going to get off to a healthy start. If we were to get central government’s support for any projects—even the Mayor’s light-rail programme—then surely the wisest thing would be to increase the industry in our city first?
   The free wifi I campaigned on was never meant to be seen in isolation. It was a signal to international businesses in that sector that Wellington was open to investment and collaboration. That inward investment and sharing of knowledge could, in turn, help local firms expand and export.
   We had reached the limits of our natural resources, so we needed to start using intellectual property, and increase R&D in our city. While ICT is healthy in Wellington, the priority must be to identify companies, in this and other high-value sectors, that can become nationally or internationally competitive with the right nudge. We should not be, as the late Sir Paul Callaghan stated in a 2011 address, locked into a single sector—and that was what the clusters were all about.
   With my 2013 candidacy, not much has changed about these ideas. The real difference is that they have become far more pressing.
   The next mayor needs to work with one’s counterparts in the region and agree on identifying, using rigorous criteria, which are our next champions. Which firms, for instance, are those that are sitting on $1 million revenues today that can be at $10 million shortly, if they were given the right exposure, contacts or opportunities?
   And since nationally, high-tech exports are growing at 11 per cent per annum, according to the World Bank, it’s not a bad sector to start with. It just shouldn’t be the only one.
   Wellington businesses are not asking for hand-outs, but the right connections. These firms also need to be encouraged to look beyond just being content with a small patch, when Wellington business-people often hold great ideals and more socially responsible ways of doing things. These can, in fact, inform the way business is conducted in other cities, and contribute to how New Zealand is marketed and seen abroad.
   I do not advocate a policy of “growth for growth’s sake”. But I do argue that the innovative way successful Wellington businesses have approached their sectors can take a larger share of the global pie.
   In my case, it’s putting 26 years’ experience on the line, the majority of that in exporting frictionless products and services.
   We can opt for politics as usual, or identify and nurture the right players in our business sector.
   When it comes to business, it must be international in scope, inspiring politicians at the national level about what Wellington is made of.
   We can consider electing people who have spent time bridging cultures and creating those international links, which we need right now if two other cities are getting the government’s focus. Wellington’s businesses have gone under the radar for too long, and they need an ally who can balance their needs while ensuring citizens’ rights are protected.
   I see our city having spent too much time breaking its own rules, and being forced to answer through formal proceedings brought by Waterfront Watch and other groups.
   The system and its rules are healthy, but the players need to change, and a cultural change, internally and externally, is needed for Wellington in its local body elections.

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When it comes to convention centres, it pays to think ahead

13.05.2013

The New Zealand International Convention Centre has been announced in Auckland. In 2010, my campaign team proposed a convention centre for Miramar Wharf, which would include a technology complex, in a format that could have been licensed to other countries, earning royalties for the Wellington business that came up with the idea. The location was to address concerns from the hospitality sector about taking business away from the centre city, and the proximity to the airport could have helped some of our visitors. (This is a matter of record and was briefly covered by The Dominion Post.)
   I felt that the project fitted in with our city’s image. I was drawn to the idea of royalty incomes for a New Zealand business, which would have showed that Kiwi ingenuity and intellectual property could be exported in a frictionless fashion. There was also a concern that we could not attract international conventions here, even in the late 2000s, and this complex could have solved it. I had been to enough conventions and conferences overseas to have seen first-hand the sort of numbers involved—and how we needed something ourselves. It was to preempt similar moves by other cities, long before the Sky City deal was announced.
   I know there are issues with this—including whether residents would want a complex there, and there would be a great need to consult with the public first. Nonetheless, it was worth raising it, and I’m grateful that it received a tiny bit of coverage, so you know I’m not engaging in revisionism today.
   With hindsight, it would have respected the memorandum issued by WCC in the 1990s that a casino was not desirable for our city. I note that at the mayoral debate for the hospitality sector in 2010, opinions on a casino were divided roughly 50–50.
   The Dominion Post is covering this topic today, and it highlights to me that this city has been caught on the back foot again.
   Wellington still strikes me as a more desirable location, with Auckland and Queenstown, for instance, a stone’s throw via an air link. It’s the same with our airport. We have an opportunity to put ourselves on the map in the next few years, while Christchurch is still rebuilding, because they will come to threaten Wellington’s position as an innovative hub within the next decade. More importantly, we need to be positioning ourselves to a global audience, something that 20th-century political thinking still prevents us from doing.

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Posted in branding, business, leadership, marketing, media, New Zealand, politics, technology, Wellington | 2 Comments »


Small is beautiful, whether it’s a company or a country

07.04.2012

My friend Summer Rayne Oakes at Source4Style put me on to an article in The Guardian by Ilaria Pasquinelli, on how small firms drive innovation. If the fashion industry is to survive, she says, it must team up with the small players where innovation takes place, thanks to the visionaries who drive those firms.
   She’s right, of course:

The small scale allows companies to be flexible, this is crucial in order to adapt to very diverse market conditions and economic turbulence.
   In addition, small companies have no other option than to take risk in order to leave their mark, notably if they are start-ups. Small companies habitually lack financial resources though, and it is precisely here where larger organisations can decide to take on a calculated risk and allocate some of their funds, in order to outsource processes, products or development.

   Therefore, it’s important not just to foster the growth of small creative businesses, but entire networks where they can come into contact with the larger ones. And the successful cities of the 21st century are those that can do that through clusters, clever place branding, and a real understanding of what it takes to compete at a global level.
   We’re still largely hampered by politicians who cannot see past their own national boundaries or, at best, look at competing solely with a neighbouring nation, when that has not been the reality for at least 20 years.
   There are exceptions where companies themselves have done the environmental scanning and found organizations to collaborate with—such as the ones Ilaria mentions in her article. But there’s no practical reason other than a lack of vision that they are the exception rather than the rule.
   She gives three examples: Tesco collaborated with upcycle fashion brand, From Somewhere, to use textile waste, which has seen three collections produced; Levi’s is refitting vintage 501s with Reformation, so customers know their old jeans aren’t going to a landfill; and Worn Again, partnering with Virgin, Royal Mail and Eurostar, is making bags out of the likes of postal workers’ decommissioned storm jackets.
   The innovations, of course, need not be in fashion or even sustainability. Look back through the last generation of innovations and many have come from smaller companies that needed the right leg up. Google, too, was started in someone’s home.
   I’ve been pushing the “think global” aspect of my own businesses, as well as encouraging others, for a lot of the 25 years Jack Yan & Associates has existed. It’s why most of our ventures have looked outside our own borders for sales. When we went on to bulletin boards for the first time at the turn of the 1990s, it was like a godsend for a kid who marvelled at the telex machine at my Dad’s work. It’s second-nature for anyone my age and younger to see this planet as one that exists independently of national borders, whether for trade or for personal friendships.
   As this generation makes its mark, I am getting more excited—though I remain cautious of institutions that keep our thinking so locally focused because that is simply what the establishment is used to. Yet it’s having the courage to take the leap forward that will make this country great: small nations, like small companies, should be, and can be, hotbeds of innovation.
   Create those clusters, and create some wonderful champions—and the sort of independent thinking Kiwis are known for can go far beyond our borders.

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A farewell to Sir Paul Callaghan, and the next step for our innovators

24.03.2012

When I attended Sir Paul Callaghan’s talk at the Wellington Town Hall last September, I felt vindicated. Here was a man who was much better qualified than me to talk about economic development, effectively endorsing the policies I ran on in 2010. But not being political, he was a great deal more persuasive. Since then, I’ve noticed more New Zealanders become convinced by Sir Paul’s passion—and wake us up to the potential that we have in this nation.
   This great communicator, this wonderful patriot, this sharpest of minds, passed away today after a battle with colon cancer.
   I wrote on Facebook when I heard the news that the best thing we can do to honour Sir Paul was to carry on his legacy, and to carry out the dream he had for making New Zealand a better, more innovative nation.
   Sir Paul wasn’t afraid of tall poppies. He knew Kiwis punched above their weight, and wanted to see more of that happen.
   All those tributes today saying his passing is a great loss to the nation are so very accurate—and I hope we’ll continue to see his dream realized.

Sir Paul Callaghan had a vision, but at the more micro level, it’s important to get a grasp on what the market will bear. There is a fine line, of course, between testing a market and relying too much on a rear-view mirror, and Jenny Douché’s new book, Fool Proof, addresses that, with case studies featuring some very successful New Zealand businesses, including No. 8 Ventures, Phil & Ted’s, Cultureflow and Xero. She stresses dialogue and engagement as useful tools in market validation, and she’s so passionate about the importance of her work that she’s donated copies to 200 organizations, including business incubators, economic development agencies, business schools and chambers of commerce nationally. Find out more at foolproofbook.com.

A Reuter story today talks about Sweden’s growing inequality in the last 15 years—something I’ve certainly noticed first-hand in the eight-year period between 2002 and 2010.
   We often aspire to be like Sweden, but much of that aspiration was based on a nation image of equality and social stability. Certainly since the mid-2000s, that hasn’t been true, as Sweden embarked on reforms that we had done in the 1980s, with selling state assets and cutting taxes.
   Inequality, according to the think-tank quoted in the article, has risen at a rate four times greater than that of the US.
   The other sobering statistic that came out earlier this year was that Sweden has the worst-performing economy in Scandinavia.
   None of this is particularly aspirational any more, and perhaps it brings me back to the opening of this blog entry: Sir Paul Callaghan.
   Given that we had the 1980s’ economic reforms, but we have scarcely seen the level playing-field promised us by the Labour government of that era, our best hope is to innovate in order to create high-value jobs. On that Sir Paul and I were in accord. Let’s play in those niches and beat the establishment with smart, clever New Zealand-owned businesses—and steadily achieve that that level playing field that we’re meant to have.
   It’s about cities creating environments that foster innovation and understand the climate needed for it to grow, which includes formally recognizing clusters, identifying and funding them, and having mechanisms that can ensure ideas don’t get lost beyond a mere discussion stage—including incubator and educational programmes. The best ideas need to be grown and taken to a global level.
   Ah, I hear, many of these agencies already exist—and that’s great. Now for the next step.
   It’s also about cities not letting politics get in their way and understanding that the growth of a region is healthy—which means cooperation between civic leaders and an ability to move rapidly, seizing innovation opportunities. It means a reduction in bureaucracy and the realization that much of the technology exists so that time spent on admin can be kept to a minimum (and plenty of case studies exist in states more advanced than us). Right-brained people thrive when they create, not when they are filling in forms. The streamlining of the Igovt websites by the New Zealand Government is move in the right direction.
   We know what has to be done—especially given how far down we are based on the following graph from the New Zealand Institute:

   As the Institute points out, many of the right moves are being made, and have been made, at the national level. But it is also aware that an internationalization strategy is part of the mix—the very sort of policy I have lived by in my own businesses. And this begs the question of why there have not been policies that help those who desire to go global and commercialize their ideas at a greater level. That’s the one area where we need to champion those Kiwis who have made it—Massey’s Hall of Fame dinners over the last two years celebrate such New Zealanders in a small way—and to let those who are at school now know that, when they get into the workforce, that it’s OK to think globally.
   If we’re wondering where the gap is, especially in a nation of very clever thinkers, it’s right there: we need to create a means for the best to go global, and make use of our million-strong diaspora, in very high positions, that Sir Paul pointed out in his address. Engagement with those who have made it, and having internationalization experts in our agencies who can call on their own entrepreneurial experiences, would be a perfect start.

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