Hits and misses in books of 2018

Appearing in Australian Spectator, December 2018 (Christmas issue)

 

There is the feeling that after ten years of political failures and assorted cultural nonsense the community is yearning for simpler times with answerable questions. This might explain why a number of books – many of them pretty good – on historical themes
appeared in 2018.
One of the most interesting was Australia’s First Spies by John Fahey (published by Allen & Unwin). He burrowed through the archives to find intriguing tales of agents and Australia's First Spiesoperatives, going back to the Federation era. Fahey takes the view that covert activities demonstrate the real thinking of political leaders, and if that is true then the early leaders of Australia were an independently-minded lot. In fact, the first real intelligence operation was against the British, trying to manipulate them into opposing French expansion in the South Pacific. There was a series of other operations, often run on an informal but nevertheless effective basis, over the next few decades, and all of it makes remarkable reading.
Another book to re-invigorate a near-forgotten chapter of history is Claire Wright’s You Daughters of Freedom: The Australians Who Won the Vote and Inspired the World (Text Publishing). The story is loosely wrapped around a famous banner painted by Dora Meeson Coates, carried in some of the major suffragette marches (it is now on display in Parliament House after being lost for many years). By the time the Parliament voted in 1902 to extend the franchise to women the campaigners had won broad support You Daughters of Freedomfor the idea (especially because the New Zealanders had already done it, and the vote had been given to women in South Australia without the sky falling in). The road was much harder in Britain, where many of the Australian women became involved with the bruising battle. Wright believes that the Australian experience was a crucial element in winning the right to vote in Britain and elsewhere, and it is hard to disagree.
A different take on social history is A Coveted Possession: The Rise and Fall of the Piano in Australia by Michael Atherton (La Trobe University Press). The first piano arrived in 1788 and for a century after that having one in the house indicated class and respectability. Pianos were also the focus of family gatherings and community sing-alongs, providing a sense of social cohesion. The arrival of recorded music saw the beginning of the piano’s decline but Atherton concludes this fascinating book with a look at the new generation of piano-makers, perhaps heralding a renaissance.
A much less happy story is One Last Spin: The Power and Peril of the Pokies by Drew Rooke (Scribe). Rooke traces how we arrived at the point of having nearly 200,000 poker machines in pubs, clubs and casinos, buttressing his research with interviews with opponents, advocates, addicts, manufacturers and politicians. He concludes that, as gambling goes, pokies are a mug’s game, and they are expressly designed to extract money from the people least able to afford it. Scary stuff, but no solution is in sight.
Shadows on the Pitch (Wilkinson Publishing) is a compilation of the columns of cricket journalist Gideon Haigh, who is now attaining the status of national institution. Covering the last season, he looks at the critical games in Australia and overseas, bringing his vast experience and trademark wit to bear, whether he is talking about the play or the Shadows on the Pitchplayers. The nadir of the season was the ball-tampering scandal, and Haigh devotes several columns to analysing it. He concludes that it was due, at least in part, to the win-at-all-costs culture of the Australian team (and the administrators and money-men behind the players) and the intense competition between the different forms of the game. He believes that Australian cricket will recover from the disaster but it will take a while and will require some deep reflection.
The winner of the 2018 Stella Prize was Alexis Wright’s Tracker (Giramondo), about Aboriginal leader, activist and entrepreneur Tracker Tilmouth. Wright collected a huge number of anecdotes and opinions on the man, fitting the oral tradition of indigenous story-telling. Sometimes this works well but in other places in becomes a muddle of conflicting opinions, and one wishes there was an authorial voice to provide clarity. Nevertheless, the no-nonsense views of Tilmouth come through, especially his views on taking personal responsibility and his rejection of the museum mentality. At 640 pages the book is not an easy read but Wright deserves commendation for the bravery of her mosaic approach and her willingness to tackle the story of a complex, controversial individual.
The winner of Australia’s other major literary prize, the Miles Franklin award, was Michelle de Kretser for her novel The Life to Come (Allen & Unwin). It is a complex Life to Comenarrative skipping across a number of locations, held together by wannabe novelist Pippa (her name used to be Narelle but she changed it for marketing reasons). Most of the characters have more pretensions than talents, as well as a pettiness that straddles cultural differences and generations. They see fame as an entitlement, not realising that success requires work. De Kretser walks a fine line between satirising them and indulging them, leavening the intensity of her writing with an undercurrent of humour and, in the end, affection. This reviewer does not always agree with the people who give out awards for writing but here it is deserved.
The good progress of the Australian novel is matched by the quality of the short stories being produced, judging from the pieces in Best Summer Stories (Black Inc), edited by the authoritative Aviva Tuffield. They span the spectrum from the disturbing to the laugh-out-loud, from the personal to the painful. Of particular note is Elizabeth Tan’s Shirt Dresses That Look a Little Too Much Like Shirts, a droll examination of life in the modern corporate office. Marlee Jane Ward’s The Walking Thing is haunting but the darkness is held at bay by the vigour of the young narrator. In One Hundred and Fifty Seconds, Katy Warner shows how Best Summer Storiesmuch can be crammed into the short-story space. Corrango, by Jennifer Mills, stays with the reader precisely because so little is explained.
In politics, the past year has been one in which no-one seemed to really know what they were doing. Laura Tingle, in her Quarterly Essay Follow the Leader: Democracy and the Rise of the Strongman (Black Inc), tries to make sense of events in Australia and the wider world. But La Tingle sometimes seems confused about what she wants, on the one hand calling for strong leaders who will stride forward to unify their polity and at other times applauding leaders who seek to build a broad consensus before moving on anything controversial. The mention of  Donald Trump makes her splutter, presumably because he refuses to fit any traditional paradigm of leadership (and could not care less). Equally, there is something hypocritical about a senior Press Gallery journalist complaining that there is too much focus on the leader. Pot, meet kettle.
The increasing strangeness of politics in underlined by Derryn Hinch’s memoir, Hinch vs Canberra: Behind the Human Headline (Melbourne University Press). He is not the oddest person to win a spot on the red benches due to the peculiarities of the electoral system but he is probably in the top ten. His personal trajectory has been wild: he ran Hinch vs Canberracompletely out of money at one point, has struggled with booze, and was jailed for contempt after naming accused paedophiles. His war on paedophiles is a constant theme running through his career although on other subjects he is all over the place. But he works hard to understand the issues and he takes the responsibility of the job seriously. So the taxpayer is probably getting their money’s worth, which is more than can be said for many other senators. Hinch pens interesting portraits of those he has encountered although his nasty streak occasionally grates. His disdain for Pauline Hanson is exceeded only by his dislike for Gillian Triggs, with whom he traded barbs in committee hearings.
Triggs undoubtedly has similar feelings for Hinch, as well as many other people. Her own book, Speaking Up (Melbourne University Press), has a rather haughty tone, as she recounts her early years and her time as head of the Human Rights Commission. She thinks of herself as the defender of Australia’s marginalised people but it is not clear that she has ever met any of them. She seems mystified that anyone would question her authority, an opinion that extends to parliamentary committees. One might expect that her life would make for interesting reading but in fact the book is strangely dour. Triggs is not one for self-reflection or even acknowledging that people on the other side might have legitimate views and grievances. She has no doubts, no questions, only the certainty of her own righteousness. There is a sense of living in a bubble of people who are, well, very much like her: Guardian-world. The only interesting thing about Triggs, as a person, is that she once hoped to be a ballet dancer. Go figure.
If Triggs’ book is somewhat plodding Kevin Donnelly’s How Political Correctness is Destroying Australia: Enemies Within and Without (Wilkinson Publishing) suffers from hyper-activity. He is well-known as a newspaper columnist, and many of the short pieces in this book would be more at home in that format. His anger and conviction over the rise of the cultural Left, with its broad streak of authoritarianism and its facetious Untitled-2arrogance, cannot be doubted, but often Donnelly’s temper is greater than his temperance. He raises many important points, especially about the influence of the Left in the education system, only to bury them as he jumps into another attack. What was needed here was a strong editorial hand to keep him focused. This is not a bad book but a cooler head would have made it a much better one.
As always, competition for this reviewer’s not-so-coveted prize, the Trees Are Dying For This award for the most unnecessary book of the year, was strong. A contender for the TADFT was Clive Hamilton’s Silent Invasion: China’s Influence in Australia (Hardie Grant), an exercise in paranoid quasi-nationalism. Hamilton’s thesis is that the clever manipulators in Beijing are slowly taking over Australian politics, media and education institutions, perhaps as a prelude to a claim that the Australian continent actually belongs to China. Presumably, Hamilton is meaning to scare us but it all comes across as rather silly.
Good effort, but the TADFT has to go to The Knowledge Solution: What’s Wrong and How to Fix It (Melbourne University Press). True, there is an interesting introductory essay by Michelle Grattan on the impact of social media and the 24/7 news cycle on politics. But the rest of the book is taken up by re-hashes of old MUP books, many of the pieces reiterating how wonderful the Hawke-Keating era was. Really? For $30? To whoever at MUP came up with this idea, a cheap TADFT certificate awaits your collection. And if this reviewer gave a prize for the year’s most misleading title, you would have won that too.

The Knowledge Solution

 

 

 

 

 

 

 

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Changing your mind (the right way)

Appearing in In The Black magazine, December 2018

 

Detonate: Why – And How – Corporations Must Blow Up Best Practices (And Bring a Beginner’s Mind) to Survive
By Jeff Tuff and Steven Goldbach
Wiley, $42, 224 pages,

DetonateTuff and Goldbach, senior figures in Deloitte Consulting, have seen many established companies flounder when trying to deal with change, and they have reached the conclusion that ‘best practices’ are part of the problem more than part of the solution. In an earlier era, the idea of doing what had succeeded before made sense but in a time of constant disruption it is the path to failure. Even more, they say, the relatively slow speed of marketplace change allowed wasteful habits to continue without consequence. No longer.
There is an intuitive logic to this, but the issue with this analysis is what comes after the demolition of the old way of doing things. This is where the real value of the book lies, as Tuff and Goldbach set out a road-map for a new method of operations. In particular, managers have to look less at organisational charts and more at psychology, both of employees and of customers. Equally, they must develop a “beginner’s mind” which is open to radical ideas and concepts, and be willing to experiment.
Tuff and Goldbach write with contagious enthusiasm, and offer good case studies and examples. Interesting stuff, presented in an interesting way.

 

Managing Up: How to Move Up, Win at Work, And Succeed with Any Type of Boss
By Mary Abbajay
Wiley, $40, 224 pages

In a society obsessed by leadership Abbajay takes the view that the ability to effectively follow is an under-rated skill. Moreover, she says in this short but pithy book, it is a skill that can and should be learned. The point of Managing Up is not about manipulating your boss – although Abbajay provides an interesting analysis of the different types of bosses – but about building collaborative relationships. Working with a boss is a partnership, albeit an unequal one, and a little empathy and understanding can go a long way.Managing Up.docx
Abbajay provides a series of lessons on how to communicate with a boss, and how to adapt to their style. These skills will be valuable when you move into a position of leadership yourself, she says, so put effort into developing them.
She acknowledges that some bosses will try to take credit for the work of their reports but in most cases the leading people in the organisation will know who is really responsible. Abbajay offers plenty of stories to illustrate her points and there are useful checklists and summaries in the book as well. In the end, it is about taking control of your workplace life – a lesson that is well worth learning.

 

Chasing Digital: A Playbook for the New Economy
By Anthony Stevens and Louis Strauss
Wiley, $33, 204 pages

For many corporations the prospect of digitisation is daunting. It need not be, say Stevens and Strauss, consultants in this field; in fact, it can open a whole new range of possibilities. In Chasing Digital they provide a five-step plan for the transition, and they Chasing Digitalavoid techno-babble in favour of a real-world perspective.
They realise that most companies, even as they make the transition, still need to turn a daily profit, so they recommend a two-track approach of using technology to improve operations in the legacy company (“Engine A”) while creating a digital version (“Engine B”). Eventually, many functions of Engine A can be folded into Engine B but there needs to a clear understanding of the value chain. Getting the software right is critical, and Stevens and Strauss emphasise that having a platform appropriate to customer demand is more important than bells and whistles. Investing in external advice can help, even as the Engine B team is being built. They recommend having a Digital Director to supervise the transition, with part of their job being to explain the process to the board. Digitisation requires a new mindset as much as new tech – not easy, but necessary in the long run.

 

How To Speak Human
By Dougal Jackson and Jen Jackson
Wiley, $30, 192 pages, ISBN 9780730359548

The Jacksons are founders of Jaxzyn, which they describe as an “employment experience” company. This fits with the chatty, conversational style of this book, although the authors clearly have a deep belief in the importance of positive communication in a busy, noisy world. Whether you are marketing a product or marketing yourself there is useful advice here, especially in the sections on building a narrative, using curiosity and surprise, and matching images to words.
They have a special interest in transforming complexity into clarity by finding the issues of most interest to the audience and using an appropriate level of language. But they emphasise that communicating simplicity requires a thorough understanding of the source material. They also explain the importance of choosing words carefully, favouring the active and the concrete over fuzzy abstractions and time-worn clichés. The key to good communication is personal engagement, not showing how many big words or Latin phrases you know.
One of the most significant sections of the book is the concluding chapter, where the Jacksons examine common excuses for not communicating clearly. They dispel reasons such as legal compliance, cost and technical complication. The risks associated with poor communication, they say, are even greater.

How To Speak Human

 

 

 

Talking with TED, finding purpose, doing analytics, and 25 mins

Appearing in In The Black magazine, November 2018 

 

TED Talks: The official TED guide to public speaking

By Chris Anderson

Headline, $25, 224 pages, ISBN 9781472228055

TED Talks 9781472228055Large parts of the Internet seem to have descended into meaningless chatter but the TED Talks site stand out as a beacon of clarity and relevance. Anderson, the curator of the site, is adamant about the importance of clear communication, and in this book (recently re-released) he provides advice on everything from organising content to setting up a lectern.

TED Talks are given on a wide range of topics but the underlying lesson is the same regardless of subject: know what your point is and how to get to it. There is no single method for a good presentation but Anderson explores five tools in detail: connection, narration, explanation, persuasion and revelation. Showing a little vulnerability, and even some humour, can help. The book has an important section on how to explain complex issues, something particularly relevant to finance professionals. The key is to build on the audience’s existing knowledge, bringing in new concepts in an ordered way.

Anderson does not much like visual aids but he nevertheless offers some useful tips. He underlines the importance of preparation and rehearsal, and has solid advice on managing nerves. Public speaking is a skill which can be learned, and this book is a very good place to start.

 

The 25 Minute Meeting

By Donna McGeorge

Wiley, $25, 208 pages, ISBN 9780730359234

McGeorge, a corporate trainer and facilitator, believes that bad meetings are the bane of business life, and when you see her calculations of the cost of lost time it is hard to disagree. Most meetings take about an hour but usually there is only 25 minutes of effective work. So, she says, limit the meeting to this time. It’s obvious, once someone has suggested it.The 25 Minute Meeting

McGeorge argues that the first step is to determine whether the meeting is even necessary (she believes that two-thirds of meetings are not). In many cases the wrong people are there, or there are too many participants (McGeorge suggests a limit of five). To make a meeting effective the purpose must be clear, the agenda provided in plenty of time, and discussion must be relevant. And everyone should leave their phones on their desk.

Much of the book is for meeting organisers but the lessons are for all participants. McGeorge believes that the chairperson must be firm in keeping things on track; this will be welcomed by everyone. And everyone should leave knowing what they have to do next. The book sets all this out with admirable clarity and systematic organisation – a model, in fact, for an effective and enjoyable meeting.

 

The Purpose Effect

By Dan Pontefract

Elevate Publishing, 288 pages, ISBN 9781773270562 (hard copy); ISBN 9781773270579 (e-book)

Pontefract’s previous book, Flat Army, was about developing collaborative mechanisms within organisations as an alternative to hierarchies and silos. In The Purpose Effect he takes this theme further, looking for ways to build personal satisfaction. He starts from the premise that a company should act in a socially responsible way, and that its values need to be understood by employees. In fact, much of the book is directed at employees, although the latter chapters are designed for corporate and team leaders.

The Purpose EffectHe asks employees to examine the relationship between their individual purpose, the purpose of the organisation, and their role within it. Do you really aspire to the position of the boss, or is it merely what you have been told you should do? If you get there, what will you do to improve the organisation and society? Is there another direction that might be more satisfying? Difficult questions, but necessary.

Pontefract provides several case studies, with his examination of Deloitte being the most interesting. It created “a culture of purpose” by seeking to instil confidence and responsibility in employees. Such programs can lift productivity but the real goal, says Pontefract, is not to improve the bottom line but to make the world a better place.

 

Analytics and Big Data for Accountants

By Jim Lindell

Wiley, 226 pages, ISBN 9781119512332 (hard copy); ISBN 9781119512363 (e-book)

This book is meant to accompany a course given by the author, a format which offers a step-by-step guide starting with basic concepts. There are chapters explaining the definition, background and development of Big Data, and an interesting section on recent and emerging trends. The real value of the book, however, lies in the chapters dealing with various analytical tools and how they can be applied, and the discussion on which tool best fits a given purpose. The section on using analytics with strategy and planning is also highly relevant.

Lindell incorporates a range of exercises and knowledge tests, using examples that grow increasingly complex. Even though he is writing about the American business environment the lessons are generally applicable, and the chapter ‘Big Data in the Accounting Department’ is especially instructive. This underlines an important advantage of this book: a reader can begin at a place which fits their own level of existing knowledge. A section that should be read by everyone, however, is the chapter dealing with privacy, which includes examples of major ethical lapses.

This is a useful book for anyone who needs to know what Big Data is and how it can be used – which means, really, everyone.
Analytics and Big Data for Accountants

 

How data analytics is transforming audit

Appearing on In The Black Digital site, 7 November 2018 – https://www.intheblack.com/articles/2018/11/07/data-analytics-transforming-audit

 

Data analytics is allowing auditors to check much larger amounts of information and focus on areas of risk.

 

The auditor of the future will use data analytics to check data of much larger sets of information from a wide variety of agencies, according to Ben Jiang, director – data analytics in the Victorian Auditor-General’s Office (VAGO).

“It once would have been impossible to analyse all of the transactions of a large agency,” Jiang told CPA Congress in October 2018.

“The traditional approach of sampling was necessary in its time but now the volume of transactions is so high that analytics technology has to be the way to go.”

A major advantage of analytics is that the contributing agencies can provide data in almost any format. Clients lodge their data, usually monthly, through a secure portal.

Algorithms for data analysis

Jiang’s team has written a series of algorithms to transform the material into a common format for analysis, as well as run checks for completeness. The aim of the algorithms is to streamline processes that were formerly done manually.

Image result for auditingThe result is a dashboard of aggregated, summarised data relating to each contributing agency. This allows auditors to easily access information and drill down as they need to. The common format allows for easier extraction of data, and also the checking of anomalies and outliers. The analytics program can create “red flags” to draw a matter to an auditor’s attention.

In the VAGO, the system is still in its development phase. The dashboard system will be used in conjunction with traditional auditing methods for a complete audit cycle. The two methods will then be compared and assessed, and any problems with the analytics methods will be identified and addressed.

The first wave of clients involves 35 agencies across the range of government entities, which includes departments, universities, councils and others. Second and third waves are planned, with improvements to the system being made as more experience is gained.

Auditors’ focus on risk

“The aim is to free auditors from mechanical tasks so they can concentrate on what they really need – and want – to do, which is auditing,” Jiang says.

“They can focus in on areas of risk that the analytics have flagged, such as classes of transactions. Ultimately, it will allow for better performance benchmarking and resource use as well as auditing oversight.”

To get the most from the analytics system and the dashboards, additional staff training will be needed. While auditors are generally very pleased with the prospect of not having to perform routine data collection, processing and checking, the new system requires some new skills and a different mindset.

Data analytics requires a large amount of computer processing power, so this led to a rethinking of the IT system at VAGO. Safeguards also had to be built into the IT changes to ensure data security.

Jiang notes that the software packages used to design and operate the new system are Microsoft SQL Server, Qlik Sense and Python.

“We are aware that we are writing the rulebook rather than working through an existing one,” he says.

“Especially in relation to performance auditing, I think we are just scratching the surface. And we take the view that analytics is meant to supplement and improve auditing. Analytics is the first post of auditing, and then human experience, insight and judgement take over.”

 

Looking for shoes and finding a new direction

Appearing in the UpStart section of September issue of In The Black magazine

 

Children’s book a whole new challenge

 

Going from a senior role in corporate risk management to writing a children’s book has been a huge but very satisfying transition, says Naomi Vowels, an Australian CPA who has re-located to Singapore. The company established by Naomi and her sister Frances, Red Shoe Stories, is set for success, with an innovative approach and a lot of energy.

The company’s debut book is called Where Are My Shoes?, aimed at the 0-6 age group. It is about a favourite pair of shoes that have gone missing; the main character recalls what they did that day to try and remember where they left them. A key part of the book is that it can be customised so that it features the child, including their name and with suitable illustrations. It also allows for the choice of an ‘adventure buddy’, and even gives the child the chance to choose the shoes they wear in the story.

Naomi Vowels“Frances’ two children were the inspiration for the book,” said Naomi. “They love hearing stories about themselves and their possessions. Frances had her third child in April – just ten days after the birth of my first son.”

Naomi decided to make the change from the corporate sector to small business owner and author when she and her husband relocated to Singapore from Geneva in early 2017. She had held a number of private sector roles, and worked in the Australian diplomatic service, but her most recent position had been as Vice President at Lombard Odier, a private bank, working in strategy and risk.

“Frances and I enjoyed our former careers but they were never really our passion,” she says. “We always knew there was something more ‘us’ that we could be doing. It just took us a bit of time and courage to get there. We set up our business in Singapore because it is easy to register a business there, there is support given to start-up ventures by the government and the private sector, and our key suppliers are based there.

“My former colleagues were extremely supportive of my decision. In fact, many of them expressed some jealousy that I was taking the opportunity to step out of the corporate world and pursue something I feel passionate about.”

Support and advice

Naomi believes that the expertise she gained as a CPA has been invaluable – not only the technical skills but also the peers who provided support and advice.

The next step is to get the book into the marketplace. The sisters launched a Kickstarter campaign to help fund the website, which is the means for customers to buy the book.

“The campaign was financially successful but we also saw it as a way to connect with potential customers all over the world,” says Naomi. “On the website, customers are able to personalise their stories and see a flip-book preview of their book. We also plan to exhibit at several book fairs in Asia, Australia and Europe, and we will continue to build our audience on social media.”Shoes book #1

Naomi and Frances have also partnered with the charity Room to Read, which promotes childhood literacy and girls’ education. One book is donated to the program for every book sold.

“We plan to make the book available in languages other than English, and we have started writing our next book,” Naomi says. “We will continue writing books for as long as they are enjoyed by children and parents. It has been hard work but I don’t think I have ever been more satisfied or happy than I am right now, writing and running our business.”

 

Red Shoe Stories Website: redshoestories.com

Social media: @redshoestories

 

The US$, fixing teams, and new leaders

Appearing in In The Black magazine, September 2018

 

The Almighty Dollar

By Dharshini David

Simon & Schuster, $33, 256 pages, ISBN 9781783963768

Almighty DollarDespite the best efforts of bitcoin, the euro, and the renmimbi, the US dollar remains the key global currency. It is recognisable around the world, is convertible nearly anywhere, and in times of crisis becomes the flight option of choice. How, says economist David, did this happen, and what is the effect on the world economy? In The Almighty Dollar she explores the phenomenon of what, in economic parlance, is called the “circular flow of income”, following a (hypothetical) dollar spent in a Walmart in Texas as it travels to a Chinese manufacturer, then to Africa, and then on to a German pension fund. After a series of other spending/investment stops it finally ends up back in the hands of the Texan consumer.

This is a contrived device, yes, but it helps to explains the processes involved. And also the scale of the flow of cash: US$1.2 trillion of banknotes are currently in circulation, with half the dollars actually outside the US. David might have spent more time in explaining why other currencies have not supplanted the greenback as the global role of the US has relatively declined but the story she tells is a fascinating one, a good balance of insight and narrative.

 

Fix Your Team

By Rose Bryant-Smith and Grevis Beard

Wiley, $28, 296 pages, ISBN 9780730354499

A good team is a productive mix of complementary skills; a bad team is a world of hurt for everyone involved. Bryant-Smith and Beard, consultants in solving workplace conflicts, believe that many team leaders fail to realise that their job is not about technical expertise but people management. The authors’ aim is to explain the most common problems and to offer practical, targeted answers to each one.Fix Your Team

Some of the issues, such as a lack of certainty in goals and confusion in lines of responsibility, are structural and can be addressed by clear communication from the leader. Others, such as unproductive meetings, need organised training. The hardest problems are clashes between people, and they can range from bullying to manipulation. Counselling can assist but sometimes intervention from specialists is needed. Joint exercises can do much to bind a team together as well as reveal the hidden abilities of members. A weekend retreat, with upskilling, can improve the engagement of employees who are only going through the motions. Most of all, the team leader must be able to develop emotional intelligence and empathy, even if it requires additional training. It is not easy, say Bryant-Smith and Beard, but it is necessary.

 

 

Leadership Transitions

By Richard Elsner and Bridget Farrands

Kogan Page, $58, 208 pages, ISBN 9780749466923

There is no shortage of books on leadership but researchers Elsner and Farrands argue that most leaders, when they take up a new position, find a vast gap between the theory and the practice. Success is more likely if the transition is approached as a learning process, especially when coming to terms with the “undiscussables” of a new organisation and its culture. They specifically argue against the idea of a new leader making immediate and radical changes. It is more likely to give an impression of insecurity than strength.

Leadership TransitionsThey see effective transitions as composed of three phases. Arrival is the time of encountering unexpected barriers, complications and unknowns. The core task in this phase is to meet and know the organisation. In the Survival phase, the new leader communicates their core values, and then, guided by those values, develops a mandate to lead. The third phase is Thriving. Here, leaders use their experience to decide the priorities and how to move forward.

Along the way, Elsner and Farrands examine the eight critical “tensions” new leaders will encounter and how a balance might be achieved. A leadership transition is always going to be difficult but this book provides sound, well-presented advice.

 

Contemporary Environmental Accounting

By Stefan Schaltegger and Roger Burritt

Routledge, $48, 462 pages, ISBN 9781351282505

This is a re-release of a seminal 2000 publication and it remains a solid guide on integrating traditional accounting with environmental issues. The book is designed as a textbook but would be equally valuable to working accountants and business leaders. The authors, both academics who specialise in this area, explain how traditional practices and new methods differ, and offer practical examples of how the principles are applied in Europe, North America and Australia. A particularly useful section deals with life-cycle assessment, probably the most common model in use in environmental information management. There is also discussion of issues such as accounting for environmentally induced financial impacts and the kind of environmental management that is compatible with increases in shareholder value, and suggestions on ways to assess and report external environmental events.

Some of this material is daunting in its technical nature but Schaltegger and Burritt manage to keep it accessible for non-specialists. Each chapter concludes with a set of questions for review, which would be good for students. The section dealing with environmental management accounting gives an excellent overview of that field, and the book includes a helpful compendium of terms which allows for easy look-up of needed definitions.Contemporary Environmental Accounting

The sweet spot in the coffee business

 

Appearing on In The Black Digital site, September 2018, url https://www.intheblack.com/articles/2018/09/07/coffee-club-data-sweet-spot

 

The Coffee Club is using data analytics to understand customers better and stay ahead in Australia’s highly competitive café sector. Here’s how your business can use data to arrive at new solutions.

Behind a simple cup of café coffee lies a highly competitive industry, with a fickle customer base and complex marketing issues. In such an environment, the effective collection and analysis of data has become essential, as the franchise chain The Coffee Club has learned.

“In 2011-2013, The Coffee Club was riding a wave where the café industry was exploding,” says Jimmy Wu, analytics manager at The Coffee Club.

Jimmy Wu of Coffee Club“However, this growth hid a lot of problems. Data strategy at The Coffee Club was vague and ad hoc in nature, and many executives and internal stakeholders relied on summarised reports.”

The measurements were purely financial and not customer-focused.

“In 2014 there was a marked increase in competition from other chains and from independent cafés,” recalls Wu.

This put The Coffee Club brand at the crossroads between its heritage and the premium, value and convenience players in the market.

Using multiple data sources

Wu has introduced a comprehensive data analytics strategy aimed at building a complete picture of existing customers and profiling new ones. Point-of-sale data was collected on the time of day of purchases, the day of the week, other items purchased in the same transaction, and traffic count versus average spend.

Wu notes that the primary transaction data was already available, but it had not been used in the right way.

Unstructured data such as customer feedback, perceptions and behavioural patterns was also incorporated. Another data source was 150,000 active VIP customers, which provided data on their buying patterns through repeat visits.

There was also cross-referencing with other datasets. It was found, for example, that a drizzle of rain on Saturdays would increase traffic in stores, but heavy rain on Sundays would deter customers from shopping centre sites.

Comprehensive profiles on each store were developed, combined with Australian Bureau of Statistics and GIS (geospatial) data, to model the best sites for possible new stores and examine growth options within the franchise chain.

Using data to arrive at new solutions

“We are always on the lookout for better data analytics solutions as this space changes rapidly,” Wu says.

“I am a big fan of Tableau Software because it allows users to discover structured data quickly. There are also other packages that we use for different purposes, such as Power BI, SPSS, Qlik, R, and Python.

“The challenge that most organisations using advanced analytics techniques face is that you reach a point where your traditional data warehouse will not accommodate the sheer size and calculation power needed. To address this, we are moving into cloud infrastructure. This will allow us to not only take advantage of addressing our current 5Vs – volume, velocity, variety, veracity, value – but also explore innovative areas such as machine learning capabilities, and data lake [data repository] and discovery sandpit areas.”

Data-related possibilities for the future include facial recognition technologies and having AI robots answering reservation phone calls, or even having a personalised digital menu based on customer preferences with product recommendation systems built in. Another idea is to leverage AI to enable store-level operational improvements.

“In this business, understanding your customers is crucial,” says Wu. “And it’s an ongoing journey. The moment you think you’re successful is the moment where your competitors start to outperform you.”
coffee

Takeaway coffee

  • Use data to profile existing and potential customers
  • Look to see what information is already held but not used
  • Cross-reference with other datasets
  • Stay abreast of new analysis tools
  • Ensure warehouse capacity