Tag Archives: business leaders

The Decaying Morality of Big Business in Australia


Once upon a time…yes I am using a fairytale opening, because big business and morals in this country has now become a fairytale concept.

With the Royal Commission into Banks, who would be naive enough to think that all the other big publicly listed businesses actually do the right thing?

Why would they?

Their advertising says that you, the customer, are the most important thing to them when in fact it is hitting targets to gain bonuses. They couldn’t care less how they achieve their bonuses just as long as they receive them.

When was the last time you heard of a major Australian public company contributing to a crowdfunding campaign for someone in desperate need? I cannot remember one.

Small businesses have, however, and enjoy a far better image as a result.

The four major banks should have an ‘Humanitarian Budget’ which is allocated to the worthiest causes as judged by senior, or even middle management (remember them?). They can, and should, by any moral or ethical argument put some of the Billions of dollars in profit they make each year towards dozens, perhaps hundreds, of worthy causes. Their bottom line would barely be affected.

The one stupid, contrary argument (and unfortunately it is law) is that as publicly listed companies they must put shareholders interests first. In other words they must maximise shareholders’ dividend payments.

As mentioned they could easily give away $10M each and split it up into hundreds of worthy causes. However their shareholders would rightly ask “Hey, by law you have to put us first and by giving that money away I got $10 less in dividend income!”

With the law on their side unfortunately it is a circular argument, a Catch 22.

As long as that law remains as it stands, profits will always be put before helping people where public companies are concerned. Perhaps a ‘tweaking’ of the law is required?

Many large private companies (but still too few) are well known for their generosity. I argue it is because they decide what to spend their profits on, not a horde of needy shareholders.

At this stage I must put my own hand up, and reveal that I have owned shares and as a shareholder I lived for those dividends. Yes, I am two faced but at least I admit it and am ready to discuss badly needed change.

The big four banks might point to a number of charitable donations, but they seem to only contribute if they can place a huge logo on it, in order to achieve a return on investment for their marketing dollars. Yes, they call helping people in need “Marketing”.

Westpac used to have a lovely rescue helicopter flying around but only because it was saturated with their logo. Then they did some analysis and ROI (return on investment) calculations and ceased funding this rescue helicopter. Not because they couldn’t afford it, but because they need to put shareholders first followed closely by their bonuses (or is it the other way around?).

Putting bonuses ahead of helping people is disgusting and definitely unAustralian. Which is ironic because had they helped more families they would have received more favourable media coverage and may not be facing a damaging Royal Commission right now. It would definitely would change our perception of them.

But there is one final problem, and this is the biggest and by far the most difficult to understand. Almost everyone hates the big four banks, and will complain about them ad nauseum but they will not close their accounts and take their business elsewhere! The big four easily have 85% of the total market, so there is no incentive on them, at all, to change their ways. In fact it encourages them to behave badly because their customers do not leave them.

So, in the end, it is your own apathy and unwillingness to follow through on your complaints that makes them so comfortable. It also creates the perfect environment for corruption, because they know that no matter what they do their customers, by and large, will stay with them. So up go fees, down goes quality of service and contributing to the community.

Well done Australians, you reep what you sow.

P.S. If you liked this short article please click on the “Follow” button, I would love to have people other than my wife and parents read my rantings!

A certain percentage of young people will always leave South Australia


It stinks, but it’s true.

Steven Marshall campaigned hard on this issue in the recent SA State election (which he won) and I for one am glad that fresh eyes are looking at this problem. However he will never be completely successful.

It remains a fact that 90+ percent of head offices are in either Sydney or Melbourne, and unless we want to double our size (in people, infrastructure etc) we will never attract more than one or two big businesses here, compared to the dozens interstate.

Of course it is worth trying but ANZ, Telstra, Panasonic and the very large organisations will never move here.

I myself spent four years in Sydney because I wanted to see how high I could go, and to enjoy the variety and challenge of working for a major corporation. I ended up as National Product Manager for IT Products for Panasonic Australia, a position I loved and never would have achieved had I remained in SA.

Mind you four years was enough (I spent over three hours a day commuting, thankfully in a company car), and family circumstances necessitated that I return to SA.

I came back to a position as a Corporate Salesperson for Ericsson. This was a big step down from travelling around Australia every few months, demonstrating the latest IT products and teaching distributors and major retail outlets how to sell them. I also gained valuable experience in presenting to the top buyers in Harvey Norman, Myers and so on, negotiating floor space and pricing.

I never would have had that experience here in Adelaide, where the biggest employer is the State Government.

I much prefer working in Adelaide to the traffic, congestion, polluted air and high cost of living in Sydney. However the upsides of working interstate, if you have ambition, far outweigh the negatives.

The attitude interstate is also much closer to the US and Silicon Valley. There, if you have started a business and failed they are actually impressed by your initiative and know that you learned some hard lessons. In Adelaide you are more likely to be shunned.

This attitude within our beautiful State will not change until the current ‘startup generation’ are well into their forties. Unfortunately this is a hard fact that we must face head-on.

So how do we keep young people from leaving SA? By being more forgiving of their mistakes and encouraging them to try again. By recognising that a certain percentage will move interstate no matter what you do, and helping the rest to make the move back ‘home’ an easy one.

You can accomplish this by having a small department that keeps in contact with these talented and adventurous young people, encouraging them to explore outside SA (they will anyway) and yet also ehticing them to return by offering a more welcoming attitude. This same small department could assist them in their transition back to SA, without them having to go backwards in their careers, by facilitating them to find a relevant position here that is of sufficient interest to them.

This small (keep it simple and focused!) government department could help them find interesting roles by assisting local businesses here to create them. This can be achieved by finding the already successful small businesses in SA (of which there are many) and assisting them, without mountains of red tape, to grow.

Up until now most of the emphasis has been on opening startup hubs and announcing unrealistic figures on how many jobs they will create. Yes we need to foster our local startup community but it needs to be coordinated and supported properly. This would involve assisting them by providing long term mentoring, cheap access to accountants, lawyers and investors to steer them in the right direction. Also vital is utilising the founders of already successful startups in SA, by encouraging them to introduce local business people to respected contacts they never would have met otherwise.

All this needs to be done in conjunction with identifying small businesses that could easily become large businesses with the right backing and support.

Such a coordinated effort would make it more attractive for our young people to stay here, and for those that leave it would encourage the talented ones to return. That involves keeping track of them and using a CRM (customer relationship management) system within government, to keep in touch and to entice them back.

This means it would be essential for this arm of government to be run like a business.

I, for one, have hope.

Who needs politicians??


People keep leaving Adelaide for better jobs in other States.

It’s been this way for decades yet no politician has taken it seriously. It’s all up to us to do it ourselves, and to volunteer to help people who need it.

The government does nothing but produce reports and spend our money like they’d won the lottery.

Without the people nothing would get done, and without the politicians MORE would get done!

A benevolent dictatorship looks better every day… 😁

Two Thirds of University Students Fail to Graduate


So two thirds of university students fail to graduate…when will they learn that they need to provide far more than text books and large lecture theatres?

A huge shake-up is needed in this sector for it to still be relevant in the years and decades to come. Teaching techniques have to change drastically – having young post grads being tutors because they are PhD students is rediculous, as is expecting people to sit through lectures over an hour long.

Come on guys, time for some disruption!

$Billion Bank Profits yet they sack workers!


So NAB announce a full year $5.3bn profit and at the same time the sacking of 6,000 staff.

Absolutely disgusting! With the $5.3b profit they should be hiring people to take care of the community, not firing 6,000 and potentially destroying 6,000 lives!

I know legally they have to put shareholders first, but surely the time has come for social responsibility to outweigh and extra couple of cents dividend per share! Oh, and I am sure executive bonuses will go up as people are shown the door carrying their careers in cardboard boxes.

We desperately need a change in corporate focus!

Constantly Working Long Hours? Maybe You’re The Problem.


I’ve always thought that if you’re constantly having to work long hours (the exception being if it’s your business, then it’s your choice and sometimes a necessity) then you are not efficient and don’t use your time as productively as possible.

In the past I’ve heard many people spend an hour a day, or more, complaining that they don’t have enough time to do their job!

A person working long hours more often than not demonstrates a lack of ability or of support, both are toxic in any organisation.

Go home, spend time with family or on yourself, because you’ll never be paid for those extra hours and your boss won’t appreciate it, she/he will just get used to it and soon expect it as your normal day.

Do yourself a favour and GO HOME!

Why is Common Sense so Uncommon?


Committees, Studies, Senate Reports and PhD’s all have one thing in common…90 percent of them are completely irrelevant and produce nothing we did not already know.
Politicians and business ‘leaders’ speak in clichés, and when a real answer is demanded escape to ‘as I understand it’ or defer the question entirely to ‘after a Committee has reported on the issue’.
One of the reasons Common Sense is so Uncommon is the need to appease every minor voice, dissenting or otherwise. Unless of course it is the vast majority of PhD’s whose sole purpose are to meet quotas and lift University rankings.
Everyone knows Nokia failed because they stopped watching the mobile phone market (now the smartphone market, but they missed the name change) and yet their top executives believe they did nothing wrong, and cry themselves into stupidity at press conferences.
Everyone knows that government departments, on the whole, are top heavy and waste millions of dollars on salaries not required to meet their core functions. Arrium knew it needed to significantly upgrade its equipment years ago but did nothing. Holden knew people were buying smaller fuel efficient cars yet did not build one (until it was too late).
Yes, stupidity is a factor, yet those pesky minority folks (which include, in addition to car manufacturer executives, the senior people who presided over Polaroid, BP safety, multiple -speed limits in Adelaide city streets and the Frome Street super-hyper bike-way built for an Airbus) who sternly and stubbornly believe they are right and have the right to be heard.
Unfortunately they are heard way too often and, also way too often, are completely wrong.
Please, I understand the need for diversity of views and am the first to listen and consider seriously all new ideas, but the squeaky wheel now receives a million barrels of oil instead of just the needed drop.
The excess energy spent on debating, studying, researching and reporting on aspects of our lives that can be solved by the time-old equation of Common Sense is worth more than our total GDP, yet we spend it willingly in the name of ‘consultation’.
Consultation be damned, give me common sense any day.