Leadership & Management Training

3 ways Leadership and Management Training can improve your organisation’s results

There’s an old saying that says “employees don’t leave jobs; they leave poor managers.” Whether you agree with that saying or not, the point is, responsibility to develop leadership talents of all employees is important, but especially crucial for your Middle to Senior Managers Leadership was once defined as ‘the practice of mobilising people to make progress on challenges…” so because change is an ongoing characteristic of any business dynamics, the leadership practice of engaging people to make progress, to grow, and to participate is critical to success. A current Deloitte survey of 7,000 companies revealed 89% of Business Leaders held “strengthening the leadership pipeline” as a pressing issue and following are 3 ways leadership development can improve your organisational success: Talent Development is important and with Managing and Engaging Change, should come first leadershipWhile Leadership and Management Training is increasingly becoming a top priority for many businesses, how quickly an organisation’s employees are willing and ready to embrace change is just as important to achieving better results. Change could imply many things: organisational culture, technological advancement, redefining roles and KPIs to align to customer expectations; innovating new ways to accommodate external factors. Developing and retaining strong leadership talent and Managing Change should go hand-in-hand as they are both critical for the long-term success of an organisation. Effective communication is vital Too many business leaders are heard to say “but I told them what the strategy was, so they should be doing it. What is wrong with them?” Regardless of whether your organisational culture operates an open door policy or a chain of command, effective communication is very vital in helping to foster healthy working relationship between management and their teams. Communication is that one golden thread that ties all the other leadership fundamentals such as accountability, transparency, discipline, strategic alignment, values etc, together. With good communication comes increased productivity and efficiency for your business. Good leaders are essentially good communicators and so don’t blame your people if your message is not being understood and actioned as you want immediately, especially in Australia where employees will nod and say to your face “Yes, I understand and am onto it” just to get you off their back Developing a Leadership Pipeline of your Middle Managers The result of a 2015 CMI survey of 1,456 members highlighted a disturbing disconnect between middle and senior management. Results from the survey also revealed that 85% of managers agreed that bridging the trust gap between middle managers and senior leaders is becoming increasingly important. office heirachyAs organisations now more than ever operate a more flattened system, the role of middle managers becomes more important as they are the ones who communicate and drive your strategy on a day to day basis with the ‘troops’. Middle Managers roles are evolving to include responsibilities in making key decisions that can potentially impact on the organisations success, including ensuring that their organisation’s vision and strategy are carried out. So when you think of the Leadership Capacity in your organisation, how confident are you that you have the strength of leadership required to take you into the future The KONA Group’s customised Leadership and Management Training Programs are totally result focussed and tailored to the unique needs of leaders in your organisation. So contact KONA today on 1300 611 288 or info@kona.com.au to discuss how we can help your organisation grow and increase organisational capability. 

Update 1 Tour de Chance… 12 hours and counting

Hi All, 

Despite having been here a few times before, with less than 12 hours to run to the start of the 2016 Tour de Chance the familiar feelings of excitement and nervousness are no easier to keep in check than the very first Tour.

As you will see from the daily distances below the 1,300 kms cycle route this year is a lot longer than before and a lot hillier, and at 88 kilos I will be having to come up with new tactics to stay with the 70 kilo youngsters in the group!

Yesterday the support vehicles were loaded with bikes and provisions and headed off towards Melbourne early morning. 

They meet up with the riders this afternoon in Melbourne for final preparations and briefings. Then at around 6am Saturday it all begins in earnest!

Cold morning starts, strong winds and a bit of rain the weather forecast is not all that encouraging but there is not much we can do about that other than take some HTFU spray and get started

We will no doubt have a bit of a bitch and moan to each other about the conditions, and then someone will say something like the hardest day in the saddle is easier than the best day for the young people at Fighting Chance … and then we will wake up to ourselves and get started

KONA’s tag line is Hope Is Not a Strategy and it is really encouraging to see that we are just a tick shy of $300,000 raised as of this morning which is fantastic and thank you for all of your support

A few people (having seen recent reports on institutional charitable organisations and the inefficiency of their fundraising models) have asked me how much of their donations will actually make it to supporting the interns at Fighting Chance. 

I have explained that the Tour costs are minimal as the riders cover our own expenses, and that all the money donated goes directly to Fighting Chance to be used expressly for the purpose of establishing new centres and changing more lives of young people with disability. 

So please be assured of the direct impact of your contribution and if you are yet to support us here is the link to the donor page.

https://tourdechance2016.raisely.com/glenndobson

As in the past I will provide daily update emails of our progress on the road – I hope that you enjoy the read. I love your feedback and questions, so please don’t hesitate to drop me a note.

Stay well and best regards

Glenn

Glenn@KONA.com.au

Day 1 – Sat 5th Nov- Mornington – Inverloch – 116km

Day 2 – Sun 6th Nov- Inverloch – Sale – 183km

Day 3 – Mon 7th Nov- Sale – Orbost – 177km

Day 4 – Tues 8th Nov- Orbost – Bombala – 162km

Day 5 – Wed 9th Nov- Bombala – Jindabyne – 108km

Day 6 – Thurs 10th Nov- Jindabyne – Queanbeyan – 169km

Day 7 – Fri 11th Nov- Queanbeyan – Braidwood– 74km

Day 8 – Sat 12th Nov- Braidwood – Kiama – 166km

Day 9 – Sun 13th Nov- Kiama – Audley (Sydney) – 99km

https://tourdechance2016.raisely.com/glenndobson

The KONA Group is Australia’s Leading Sales and Sales Management Training and Coaching company and provides customised training programs that include: Sales Strategy, Sales Training & Coaching, Call Centre Training & Coaching, Negotiation Skills Training & Coaching, Motivational Speakers, and more.

So contact KONA today on 1300 611 288 or email: info@kona.com.au to discuss how we can help you to improve your business results.

Cycle For Charity
Interview with Glenn Dobson

What does it really take to cycle 1,300 kms in 9 days for charity?

In this week’s interview between KONA Group MD Glenn Dobson and Tour de Chance major sponsor Just Better Care, Glenn shares the excitement and fears of this year’s ride as we learn more about how and why ‘every day’ people push themselves to their limits to help people with severe disabilities, while still balancing a successful business and family. JBC: Why are you cycling 1,300kms from Melbourne to Sydney in November? Are you crazy?! GD: There’s two reasons – the first is to spend a week in the fresh air and challenging myself physically in a multi-day sporting event. Endurance events are something I just love doing – since I reached 40 I’ve run across the Sahara and Australian deserts; completed 23 Ironman triathlons and this is my third Just Better Care Tour de Chance so I just love the challenge. The other side, the other reason is that I have a healthy family – I’ve got two healthy daughters, I’ve got three healthy grandchildren – and I think sometimes we all get caught up in the day to day and we forget how lucky we actually are. So for myself it’s a real chance to give back. I couldn’t do what the carers do at Just Better Care or at Fighting Chance so this is my way of contributing to society. JBC: How are you preparing? GD: My preparation this year has been a lot different to previous years as I haven’t been on the bicycle for 16 months since last years ride from Brisbane! I had to dig my bike out of the garage, dust it off and actually get back on it about 6 weeks ago. Outside of that I’ve really gotten into Crossfit which is about weights, strength, gymnastics, running, rowing, climbing, jumping – the whole shebang. Physically I’m quite healthy but 1,300kms well test me out. Anybody can go out and ride for a day or two but at day 3 it starts to gets hard. When you have to get back up day after day after day your body doesn’t recover quickly enough and you have to really push through the mental and physical barriers. Day 2 we will cycle 183 kms, day 3 is 177 kms, day 4 is 162 kms and so on, so an endurance event like this is 80% mental and 20% physical. Also because it is a charity event it’s not a race – the Tour de Chance will be 18 guys and a lady who will be supporting each other and everybody will help each other to get through the tough days. JBC: What are your expectations? GD: My expectations for myself are to finish the ride and to enjoy it without being too fatigued. However financially it’s to raise desperately needed funds for Fighting Chance. The charity industry is a very competitive industry and if each rider achieves their $15,000 donation target, or more, that makes a very big difference as we will change the lives of over 80 young people with disabilities by opening up 2 more ‘Hubs’. In addition, KONA is Australia’s leading Sales Training and Sales Management Training company so I revel in sales targets and as soon as that $15,000 target went up I had everything working towards it. Our consultants, families and and clients have been making donations and/or selling raffle tickets; we’ve had BBQs and sausage sizzles; run events; taken donations; we’ve used LinkedIn, eDMs, Facebook; had donation buckets in retailers & car boot sales; door knocked most of the businesses in the local suburbs; posted updates on our website at KONA.com.au etc etc. We have had everything going on for a couple of months now as for me we can’t forget that the main goal is to raise funds for these severely disabled young Australians. JBC: What are you looking forward to? GD: I’m really looking forward to the challenge as 1,300 is not an easy distance. I’m looking forward to pushing myself physically, out in all of the weathers that Victoria will throw at us; I’m looking forward to being away from computers and all the’easy’  stuff we go through everyday. JBC: What are you dreading? GD: I’m dreading the hills. When we came down from Brisbane last year there were a few hills but nothing like this year. On day 5 we climb up into Jindabyne, and at 6 feet 1 and 88 kilos I’m not good going uphill. Some of the smaller younger riders can really climb but I fit into the too-old-too-slow basket! JBC: What is your goal? GD: My goal is twofold (outside of the finishing of course) – my first goal is to go over the $15,000 donation target and also to try and help some of the other guys achieve their donations targets. If we can all hit the $15, 000 each that will make a big difference to the lives of so many people. In addition, the final goal is that everyone comes home safe and we all come home with our donation target achieved, individually and as a group. So if you or your organisation would like to donate to this wonderful charity please go to https://tourdechance2016.raisely.com/glenndobson Alternatively contact Glenn directly on 0425 200883 or glenn@kona.com.au to discuss how we can help your organisation. Tour de Tour Chance

Trump vs. Clinton: Lessons for sales people

Cartoonist, Joe Heller brilliantly summed up the two US political candidates in one cartoon. The major difference between Trump and Clinton according to that cartoon is, the former is pessimistic the latter is optimistic. Same issues. Different perspectives. How do you see or explain the world around you? Are you a “glass half- empty” or “glass half – full type of person?” The way you see or explain the world around you is really a matter of perception. Perception is what makes the difference between an optimist and a pessimist. Optimism is an essential ingredient for sales success. If you are a sales person who tends to see the world like Trump in the above cartoon, you may not last very long in the sales business. Imagine a scenario where you’re in a job in which you are able to determine your own remuneration package, plus you get to add value to customers on a daily basis. Your role is to help them know you have the solution to their problems. Sounds like an amazing opportunity, right? Until you pick up the first call and your receiver responds with a mean, resounding ‘No’! Or maybe ‘Not interested, thank you’! Would you pick up the phone and dial the next prospect? Optimism is what keeps you in the game. Benefits of optimism Optimism is the ability to overcome a setback. The result of a study carried out by an American psychologist, Martin Seligman proved optimism breeds success.  Applicants for a top sales role were required to pass an optimism test designed by the psychologist and a sales aptitude test designed by the company. Needless to say applicants who passed both tests went on to outperform those who only passed the aptitude test by 31% in sales. Apart from professional benefits, there are many benefits to being optimistic. Optimism improves your personal relationships, physical health, mental health, tendency to live longer, coping skills during stressful time, and more. Research have shown that positive attitude reduces the effect of a stressful or negative experience. A positive point of view is a significant indicator of resilience People are more likely to respond to a positive person than they would a pessimist. Even the ending to a Hollywood movie can have an impact on the way people would receive it. For example the 2016 romantic movie ‘Me before You’ was badly criticised and heavily protested in US and Australia because of its sad ending. Critics believed it portrayed disabled people as burdensome and having no hope. On the other hand, ‘Life of Pie’ and ‘Silver Linings’ had many positive ratings because the ending showed the major characters: Bradley Cooper (as Patrizio Solitano Jr) and Pi striving to maintain a positive attitude regardless of their circumstances. Anyone can learn to have a positive attitude A positive attitude is a habit anyone can learn. Our mindset is the starting point. You can choose to start your day with a positive outlook. A wise woman Joyce Meyer once said: “A negative mind and a mouth will produce negative moods, attitudes and in all probability, a miserable day. But the positive approach of setting your mind in an uplifting direction, will also have a good effect on you and your entire day.”

Could the new Microsoft Dynamic 365 hold the key to a more dynamic customer insight?

Could the new Microsoft Dynamic 365 hold the key to a more dynamic customer insight? A Harvard Business review once debunked our complete reliance on the traditional customer surveys and research (such as those that help with tracking customer satisfaction and brand image) in helping to keep track of customer insights. The review showed that this technique has a “fundamental flaw”: the reliance on customers’ memories, which quite frankly, deteriorates quickly. For instance, it’s not unusual for a customer to claim they saw a company ad on TV at a time when the company was not advertising. Clearly, time is of essence in capturing true customer insights – which we tend to overlook so very often. The past few years have seen a number of top companies such as Schweppes, InterContinental Hotels, Unilever, HP, including Microsoft using Real-time Experience Tracking (RET) to make informed marketing decisions. So, could the new Microsoft Dynamic 365 hold the key to a more dynamic customer insight? Recently Microsoft announced the unveiling of its Dynamic 365 app for customer insights — the much anticipated product since July this year. It is designed to use intelligent analytics to help you better understand your customers. It breaks down the silos between the traditional CRM and ERP capabilities into one cloud surface and integrates the familiar tools you use everyday such as outlook and excel and other applications that work with sales, customer service, operations, finance, marketing, project service automation, and more. This tool is said to help you turn data (intelligent insights you get from your customers) into action to help you  increase your productivity. Clearly, the Microsoft Dynamic 365(every-day-of-the-year)is a dynamic tool good for helping your company re-imagine business processes. You’ll be able to:
  • Better empower employees
  • Engage your customers
  • Optimise operations
  • Reinvent products and business models
The AppSource contains more than 200 business SaaS apps, add-ins and content packs which you can keep adding as your business grows. Adrian Bridgewater from Forbes called it the ‘one software suite’ because of how it works integrated with other apps. However, Microsoft would have to be really good to stay abreast with its major market competitors Oracle, SAP and RET. If this app delivers everything it promises, then every business that is customer focused should definitely go onboard with it. Popular reviews about the app include: “Microsoft gives Salesforce a shove with the new Dynamics 365 integrated cloud platform” – Ron Miller, TechCrunch ” Microsoft Ups Salesforce, Oracle Rivalry with New Cloud Product” – Dina Bass, Bloomberg “Microsoft’s business apps in the cloud are getting the Satya Nadella treatment” – Alex Konrad, Forbes For first look of the app visit: aka.ms/firstlook

Sales coaching – a win-win for everyone

Managers often ask the question: “what if we invest in [coaching] employees and they leave?” The question to ask is “what if we don’t and they stay?”

The benefits of employee training cannot be over-emphasised.

Because quite frankly, it’s a win-win situation for everyone — company, customers and all.

A well trained employee could potentially mean more revenue for the company. The same ideology applies for sales training.

The 2016 Sales Enablement Practitioner Survey by Highspot demonstrate that ‘sales enablement’ is currently a trending topic for business processes.

An astounding 79% of organisations are engaging in some form of organised sales enablement activities and 64% of those indicated ‘sales training must be improved’.

Mostly, the viewpoint is integrating training into every sales enablement process not just a one-off activity to be carried out once a month or once a quarter.

Some of the enablement processes listed include: giving sales people easy access to content, taking advantage of new technology, and more.

Effective sales training requires great investment of resources which includes time. Some have suggested training programs of between 6-3 months for maximum result. Others have suggested one hour of one-on-one daily sales training sessions run by a manager or a coach.

There are many cited methods of sales training out there. However, whatever method used should be both efficient and effective and may depend on business structure.

Sales training should be geared towards improving a salespersons self-esteem, goal setting skill, negotiation and objection handling, accounts development, sales management, including qualifying leads, overcoming missed sales goals, and lost opportunities, and more.

Successful sales training is like creating a ripple effect

Sales training, if done right will create a ripple effect on not just your company but on your customers as well.

Sales training equals self-confident sales people

Most sales people have admitted their level of confidence depends on their level of  knowledge about a product. A truly confident sales person is confident in his/herself regardless of the product they are selling.  

It’s been proven several times that a self confident sales person is more likely to thrive regardless of situations. Sales training that is geared towards boosting employee self confidence will equip them to overcome the challenges of closing sales, promoting benefits of a product rather than features, and prospecting and qualifying.

Confidence – An Important Vibe

Confidence is a very important vibe in the sales business as it makes the difference between winning or losing a prospect.

It’s the starting point of being able to connect with people and building trust. And we all know sales trust is significant in sales success.

A survey done on customers revealed that over 90% will only buy from a sales person they trust.

So, you know you have a great product but how do you guide your customers to go from the unknown to the known of making them realise they actually do need your product? Trust is key!

Sales training boosts motivation/enthusiasm

In addition to confidence, sales training also has the capacity to boost motivation/enthusiasm to close more sales. In order to succeed in sales a lot of enthusiasm is required…The more sales closed the more motivated you are to close even more sales. That also means more sales training to sustain that vibe. A wise man, Zig Ziglar once said: ” for every sale you miss because you’re too enthusiastic, you’ll miss a hundred because you’re not enthusiastic enough.” Therefore the importance of motivation/enthusiasm in sales should not be underestimated.

Sales training builds efficiency

You will find your sales team will close sales faster. If it took 5 days to close a sale, sales training gets it down to 2 days. This  means more productivity which means more days to close more sales, and subsequently, more revenue for the company.

Call or email KONA to learn more about our Sales Coaching and Training

The Rob Mockler Story

KONA often gets asked why is our MD Glenn Dobson cycling 1,300 kms from Melbourne to Sydney to raise funds for a severely disabled young Australian that he has only met a handful of times? The answer is that the challenge is absolutely nothing compared to what Rob Mockler and his family face every day Rob’s story started 33 years ago when he was born 10 weeks premature! rob-mockler His problems began immediately after his birth as his lungs actually burst 3 times… The doctors wondered how and why Robert could survive but were soon to realise that his spirit for life had more strength than his body would ever have He clung to life with a passion and survived, even though it would give him a number of major problems long into the future. At 33 he can’t talk, walk, feed or change himself but his Mum Mary and Dad Warren, sister Luisa and brother John-Paul chose to do whatever they could to help Robert along his difficult road. They looked into a range of different programs and over the next few years regularly traveled down and back to Melbourne to have him assessed and introduced to a new program every visit to help his raise his quality of life These stimulation programs started when Robert was less than 12 months old and went on until he started pre and then primary school part-time, his family always managing to balance his schooling, coupled with ongoing treatment including acupuncture, massage and point percussion. Eventually Robert started at a special school at Allambie and completed his schooling there. Unfortunately when puberty started so did his contracture* and serious physical problems which have resulted in him needing around the clock care (* a condition which shortens and hardens the muscles, tendons, or other tissues, which often lead to deformity and rigidity of joints) Later Rob started going to an amazing charity called Fighting Chance who create supported work opportunities for severely disabled young Australians and about four years ago he even started Drama classes and has performed at the Opera House with his theatre company! Robert loves his day work as well as his social activities. He goes out to the football, cricket or to concerts or out for dinner mainly with his friends. Rob is also a Manly supporter, although I think his carers Katrina Rotondo and her brother Andrew at Fighting Chance are slowly converting him to the Dragons… Over the years Robert has developed a happy, social disposition and is keenly interested in everything he gets involved with. He eagerly looks forward to all social activities!!! However just like you and I, he will never lead a life that we take for granted So if you or your company can help us to make a difference to Rob by donating at https://tourdechance2016.raisely.com/glenndobson he will be eternally grateful Alternatively please join us on our 1,300 kms cycle ride in November! Best regards Glenn The KONA Group Because Hope Is Not A Strategy https://tourdechance2016.raisely.com/glenndobson M 0425 200 883 T 1300 611 288 www.KONA.com.au  

The KONA ‘Hour of Power’ can be a million-dollar injection to your sales budget!

The KONA ‘Hour of Power’ can be a million-dollar injection to your sales budget!

The KONA ‘Hour of Power’ can make a positive impact on your sales team.

Do you have any of the problems below?

  • Are your sales people are not speaking with enough new customers and prospects?
  • Are they reluctant to pick up the telephone to call people they don’t know?
  • Do they struggle to make appointments with senior decision makers?
  • Do they struggle to get past ‘the gatekeeper’?
  • Do you have overstocks that need to be cleared?

At the end of the day the best way to fill your sales funnel is activity, and the right activity at that!  Making calls to potential and existing customers is a great way to do it.  This contact between salespeople and customers is critical to sales success and one of the key reason some sales professionals smash their targets and others don’t know what 100% of target is.

There are a few key points to make a calling session a success:

  1. SUPPORT each other by doing it as a group
  2. MAXIMISE the chances of success by getting the language right
  3. HAVE a conversation between people (emails do not work)
  4. PRACTICE some calls with each other before you make the call (I know the dreaded role play but this is so critical to success!)
  5. SET some targets for the hour of calling. (appointments and orders are a great starting point)

KONA has seen this ‘Hour of Power’ work with some stunning results, one client landed over a $1 000 000 in sales.  This works for both Account Management and Business Development teams and is a skill set we know is critical in Sales People.

Sometimes filling a Sales Funnel is a daunting task and when that funnel is emptier than it should be the excuses start to come out!

  • Things are slow.
  • Our competitor is cheaper
  • There are product problems

At KONA we hear them all and they all relate to ‘Price, Product and Problems’.  These are the best excuses in the world for sales teams to find reasons not to act.

Conducting an ‘Hour of Power’ is a tangible action that forces everyone to act.

If you need help running an “Hour of Power’ give KONA a call on 1300 611 288 or email us at info@KONA.com.au


Are we a knowledge based economy?

What’s down the track for a knowledge based economy? 

photo-3 OPINION: Not only is its confrontational industrial relations environment seen as a major constraint on innovation, but government statistics show that its investment in R&D lags a long way behind most other industries. The most recent Australian Bureau of Statistics data on business expenditure on R&D (BERD) shows that of the total $18,849 million invested in R&D across all Australian industries, manufacturing remained the largest contributor at $4,844 million (26 per cent). That outpaced professional, scientific and technical services ($3,753 million, or 20 per cent), financial and insurance services ($3,093 million, or 16 per cent) and mining ($2,830 million, or 15 per cent). Together, these four industries account for 77 per cent of total BERD, while construction contributed $864,103 (4.5 per cent). While the above data looks depressing, it masks the reality of how much innovation really happens in the construction sector. In contrast to the pre-planned, laboratory-based and scientific R&D that typifies others sectors such as manufacturing, innovation in construction normally happens at the ‘coal-face’ in response to day-to-day problems. This means it is largely ‘hidden’ from formal government R&D statistics. However, given that we are inexorably moving toward a knowledge-based future where intellectual property and new ideas will mean the difference between staying ahead of increasing competition or lagging behind, there are also strong arguments that the construction sector should be investing more in formal R&D. So it is worth knowing something about what R&D involves and the many commercial benefits it could bring, if designed and managed effectively. In simple terms, R&D is a knowledge creating process underpinned by rigorous scientific investigation which leads to the commercial development of new services and/or products. R&D can be applied or pure, the form being a response to market developments and having a practical application. Pure R&D is more conceptual and exploratory with the aim of adding to our knowledge base without any specific application. In contrast to applied R&D which has traditionally been the focus of the construction industry, pure R&D has traditionally been the responsibility of government. Government support for pure R&D has always been considered crucial because research shows that most private construction companies, if left to their own devices, would under-invest in this area. With only a few exceptions, the vast majority of construction companies see pure R&D as too risky and time-consuming and are not prepared to tolerate the long-term risks in capturing its benefits. However, as demonstrated by the world’s most innovative companies, when R&D is targeted and managed effectively, it can bring significant commercial benefits. Take for example, British Petroleum’s (BP’s) highly successful and innovative Venture Research Unit which developed and managed one of the world’s most successful corporate R&D programs. BP’s Venture Research Unit was deliberately located outside any of BP’s existing business units to enable it to generate ‘new breakthrough ideas that would lead to new industries and markets for BP.’ Working under the management of BP’s Venture Research Advisory Council and in close collaboration with the world’s leading universities, BP’s innovation strategy involved signing up the world’s most gifted pioneering researchers whose interests were aligned with the business. Rather than following the traditional approaches to R&D which typically involves commissioning pre-determined business-led projects, BP provided these top researchers with the resources to pursue their own ideas and to launch radical challenges to existing ideas outside any external business influences and constraints. This process not only preserved the ideology of independent, unbiased research, but was designed to promote uninhibited thinking. BP chose its team of researchers on the basis of whether their research would radically change thinking about something that was very important to society and to BP’s business. Once accepted into the Venture Research Unit’s team, BP’s goal was to help these leading researchers bring this about. There was an exceptional lightness of touch in managing this research. The only requirement imposed on the academic team was that they were to keep BP regularly informed of what they were doing so that BP could be the first to translate these ideas into marketable products and services to for their customers. Researchers were not concerned directly with the commercialization process. This was entirely BP’s responsibility and once a researcher received BP’s money, they were free to use it in any way they liked. BP did not dictate projects, fields of study, problems or timescales and eventually the unit’s funding was expanded to a consortium of business partners with complementary interests in BP’s demand and supply chain such as ICI, Sony and DuPont. The beauty of BP’s collaborative approach was that it avoided the classic problem of selecting research proposals and constraining the freedom of researchers to follow their passions and strengths. By supporting individual leading researchers and their research aspirations rather than specific research projects, BP was able to pursue a liberal approach which drew knowledge from a range of disciplines and business partners. Furthermore, by hand-choosing their research partners and by minimizing the normal time, resource and bureaucratic constraints associated with scientific research, BP not only reduced the barriers to innovation but they also reduced risk since the researchers they supported were almost certain to succeed. The key question and risk then became how to convert that research into ideas for BP’s benefit. The research that was implemented proved to be extremely successful and their return-on-investment more than covered the relatively small investment in the overall initiative. While there are too few examples like the above in the construction sector, there are exceptions to this rule. For example, Arup is renowned for investing significantly in both pure and applied research with a longer-term view. Arup is reported to invest approximately three per cent of its annual turnover in R&D and has a clear road map for its R&D which extends over 20 years into the future based on key drivers of change in key business areas. Arup also integrates research-based KPIs into performance reviews for staff who are required to publish and collaborate with universities in creating new knowledge for the benefit of the business and society at large. Arup’s research program is driven by both ‘pull’ from its business leaders and ‘push’ from universities and research network partners. Research is seen as vital for its strategic business planning to ensure that it is equipped for future trends and that it can capitalize on new opportunities to improve its business and enter new markets. As in BP’s case, Arup’s research team’s work involves forging and maintaining links with the best quality universities, researchers and research establishments, no matter where they are. Arup also works closely with government research funding and advisory bodies around the world to lobby for certain priority areas of funding and to leverage its own resources. Arup has arguably generated more knowledge than any other firm in the construction industry and has benefited enormously as a result. Indeed, many of Arup’s most successful business units have arisen out of its willingness to allow its staff members to pursue their own passions and interests within the work environment. Importantly, while this strategy has inevitably involved some risk and failure, it has also enabled Arup to build a global reputation for innovation, attract the world’s brightest and most engaged staff and to be first mover in a number of new markets and reap the significant benefits associated with this. While contracting is not generally synonymous with R&D, Laing O’Rourke also has a strong commitment to R&D through the formation and continued success of its Engineering Excellence Group (EnExG). It is not only Laing O’Rourke’s spending commitment to innovation and R&D (1.9 per cent of revenue) that led to it being recognized as one of the top 10 most innovative Australian organizations in 2014 and 2015. Rather, it is how these funds are utilized through the EnExG, and other activities of the wider organization, that makes Laing O’Rourke’s approach to innovation distinctly successful in an industry that often promotes similarity. The EnExG is a highly cross-disciplinary team that has offices in both the United Kingdom and Australia. Now five years old, it employs a broad mixture of intellects and experiences from both within and outside of the traditional construction industry, with the aim of providing the perspectives and insights that can only be gained at the overlapping boundaries of the traditional disciplines of knowledge. By providing the environment for challenging and disruptive ideas to take seed and grow, the EnExG aims to drive fundamental change in the practices and culture of the broader construction industry. This means much of the work of the EnExG is not solving problems through innovation, but rather providing fundamentally new methods and modes of thinking and working. The EnExG has pioneered the development and implementation of disruptive technologies such as 3D printing, augmented reality and biometric measurements, among many others, for use by the Laing O’Rourke workforce and clients. Along with this foundational development the EnExG acts as a cultivation space for promising and innovative commercial ventures. One of these, SunShift™, has been awarded several highly competitive government grants and been the subject of much media attention for its potential to reshape the economics of renewable power generation. While not every consultancy or construction company has the resources to invest in the types of highly structured and formalized R&D programs described above, it is worth remembering that all construction firms, large and small, exist in an increasingly globalised and knowledge-based economy where there is an ever greater reliance on our intellectual and creative capabilities than on our physical inputs or natural resources. We need to work smarter not just harder and without new ideas the Australian construction industry and the jobs that it provides will wither away in the face on growing and smart international competition. Thanks to Dr Rowan Braham of Laing O’Rourke’s Engineering Excellence Group for providing information relating to its activities.  Martin Loosemore is a Professor of construction management at UNSW. This opinion piece was first published on Sourceable.

6 Things Aussie Traders Will Be Talking About Today.

US non-farm payrolls Friday were weaker than expected at 156,000 and the unemployment rate rose to 5.0%. But an increase in August payrolls offsetting September’s miss means that the odds of a Fed hike in December actually crept a little higher. That put a little downward pressure on stocks in the US. But after a strong week of gains, the US dollar and 10-year bond rates dipped a tiny bit into the holiday weekend. Australian stocks are tentatively pointing to a positive open with the December SPI 200 futures closing up 8 points on Saturday morning. But the rally in the Aussie and Kiwi dollars, along with the push higher in USDJPY, suggest that perhaps expectations of a Clinton victory in today’s debate could see a risk-on tone in Asia today which could help stocks. Gold climbed off the mat Friday after trading down to $1241 an ounce, the pound settled after its collapse in Asia, and oil drifted. Here’s the scoreboard (7.50am):
  • Dow: 18240 -28 (-0.15%)
  • S&P 500: 2153 -7 (-0.33%)
  • SPI 200 Futures (December): 5,458 +8 (+0.1%)
  • AUDUSD: 0.7603 +0.0018 (+0.23%)

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https://www.businessinsider.com.au/6-things-australian-traders-will-be-talking-about-this-morning-v5-2016-10