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What to Eat and What Knot to Eat

13 Friday Jul 2018

Posted by Burning Manager in Uncategorized

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absenteeism, anti-stress food, Australian Financial Review;, autophagy, brain food, Bupa, Coca Cola Amatil, CTC Cafe, el desko, healthy diet, keto, ketosis, KPMG, NAB, presenteeism, The System Cafe

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We’ve all been there. In fact its de rigueur for the first speaker after lunch at a conference or seminar to make a particularly threadbare comment about the graveyard shift’. The implication is you will all be nodding off after stuffing yourself on the hearty food gulped down during the lunch break. This is generally aided and abetted by those delicious and tempting pastries served at morning tea. The fact of the matter is the speaker is right on the money and sure enough the audience will be dotted with people whose bodies jerk awake as they have caught themselves nodding off. It doesn’t have to be like that though. Imagine then, this phenomenon happening in the workplace every day outside of the conference circuit. Imagine it happening when high risk plant is being used on a site, precision manufacturing, or air traffic control. Imagine trying to learn key life-saving information on a training course.

An interesting article appeared in the Australian Financial Review (AFR) this week on companies (NAB, Bupa and KPMG all got a mention) who are getting rid of sugar rich food in favour of healthy options. A big part of their rationale is productivity and wellness. If you think this is just high paid HR people running out of ideas think again. It has been estimated (AFR) that the cost of absenteeism and presenteeism (at work but not fully on the case) costs the Australian economy $44 billion per annum. Put that into perspective – Queensland spends $17.3 billion on its public healthcare system.

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As many will know CTC has had a focus on worker well-being for some time. We are pretty proud of the initiatives we have introduced:

  • 24/7 gym;
  • Mindfulness training for staff and tenants;
  • Relaxation and sleep centre; and
  • Fitness classes.

In fact we were recognised for our efforts in 2016 winning the State Government’s Best Workplace Wellbeing Award. Our efforts have focused lately in the areas of nutrition and mental health and alertness. As I write this we are holding our very first Keto Klub where we will impart information and provide support to those wishing to explore the benefits of a new approach to diet (as opposed to dieting).

Brain food

There are those who will argue that obesity isn’t a workplace issue, but I’m not sure I can subscribe to that view. With respect to our own position we provide an on-site café and from here we feed our tenant staff, our CTC staff, students, visitors and course participants. We have a captive market on our Precinct. What we serve everyday has an on-going positive, or not so positive impact on people’s lives, depending on menu options we present. Things are getting worse at a population level for Australians.

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The Australian Institute of Health and Welfare who know such things state that one quarter (26% to be exact) of children and adolescents were overweight or obese in 2014-15. Alarm bells not ringing yet? They also estimate that two thirds of adults are overweight or obese costing our economy an estimated $8.6 billion in 2011-12. At the very least this is a health and social policy issue of huge significance so it’s easy to see how this could impact on the business world and why the business world may wish to intervene. Regular readers of my blogs will be familiar with my argument of businesses and corporations acting ‘in loco parentis’, as it were, with respect to what used to be the sole domain of governments.

As it happened we have changed our Café operator recently. While we were sad to see our previous operators depart after a number of years running a successful enterprise, that did provide us with an opportunity to re-think our approach to what we offer. How can we sheet home responsibility to the government to fix the obesity epidemic if we keep providing food that runs counter to a healthy diet?

Before selecting a new operator we sat down and worked through an ethos. We sought opinions from our tenants and the main building and construction Union. Guess what? They reported that they we grappling with exactly the same issues of the need for healthy food options for a workforce that traditionally has been eating food of lower nutritional value. Our thoughts can be distilled as:

  • You are what you eat;
  • Providing a range of healthy food that is both nutritious and able to sustain those workers who have manual jobs and who burn off significant kilojoules of energy through manual labour;
  • Recognition of the fact that very few attendees at CTC actually undertake the physical work where they do the high burn of kilojoules. This occurs after they finish their course and leave the Precinct;
  • Students are with us to learn – in many cases to get tickets for high risk work. We want them focused while training not drowsy from stodgy food;
  • Offering healthier options may provide the customer with that ‘light bulb moment’ that may see them want to explore better diet options going forward;
  • Buying local is better from a sustainability point of view and supports local businesses;
  • Reducing food waste is a good thing (Australians waste nearly $10b per year with the average household chucking out 14% of food bought (Huffington Post Oct24 2017);
  • Fresh food is better than frozen;
  • Sugar is the hidden killer so less is more across the food and beverage range; and
  • Fair trade is preferable because we know the provenance. Many attendees on courses belong to companies who have reporting obligations in the very near future under upcoming Modern Slavery legislation currently going through Parliament.

sugar-in-that-drink

I just want to dwell on sugar for a moment. Advocate group That Sugar Movement tested 291 employees recently who had no known health issues and found around half (52%) had blood sugar levels out of range. Clearly added sugar in our food is a major culprit and the area that needs most immediate attention. Even if you think you have pared back by having a healthy meal you may just find yourself trapped by a -on the face of it -healthy drink. Common place in our industry are energy and re-hydration drinks, many of which are loaded with sugar. Even pure fruit juice drinks will be high in sugar. The rule of thumb I use is 4 grams of sugar equals one teaspoon…round it to 5 if your maths is not great! Let’s take Powerade or Gaterade, two popular sports drinks. Both contain 21 grams of sugar in a 375ml (12 ounce bottle) around 5 teaspoons of sugar. That’s probably the value of your hard workout gone before even leaving the gym!

So if you do want to provide food at a function/seminar/conference/training session, or be attentive at a session, what works and what doesn’t?

DO:

  • Have breakfast. Certainly NOT the most important meal of the day but it is if you want to be alert after lunch;
  • Eat smaller quantities;
  • Colourful vegetables;
  • Whole grains;
  • Nuts and legumes;
  • If rice make it brown;
  • Blueberries and walnuts;
  • If providing a sweet option consider sugar-free slices e.g. paleo treats;
  • Lean proteins;
  • Smaller portions; and
  • Water – lots.

DON’T:

  • Turkey;
  • Soy;
  • Eggs;
  • Cheese;
  • Tofu;
  • Fish;
  • White bread;
  • Cherries – yeah go figure!
  • Starchy food;
  • Chips, wedges etc.;
  • White rice;
  • Pasta;
  • Sugar intensive sweets;
  • Too much coffee – might keep you alert at the cost of dehydration; and
  • Big portions.

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 For longer-term alertness in your day job, outside of the conference circuit, there are a number of rules of thumb.

  • Don’t be pressured into having breakfast – being the most important meal of the day is propaganda – indeed intermittent fasting rather than being bad is good for you (seek medical advice first). It’s called autophagy and worth Googling.
  • Don’t eat el desko! You spend enough time there, your meal breaks should be just that; breaks from your immediate work environment. Employers are required by law to provide lunchtime amenity to enable you to escape your particular chicken coop!
  • Lots of water;
  • Moderate coffee intake.;
  • Green or other herbal teas;
  • Oily fish like salmon;
  • Citrus;
  • Eggs;
  • Beans;
  • Avocados;
  • Walnuts;
  • Berries especially blueberries;
  • Leafy greens – perhaps avoid Kale if not organic as this ‘super food’ has an uncanny ability to absorb bad toxins from the environment;
  • Bran cereal;
  • Dark chocolate – really? Yes but has to be real dark i.e. ultra-high cocoa component;
  • (this is my own particular addition to the list) left over food in your fridge at home. Depends of course what it is – a Domino’s pizza from Friday night may not do the trick – but we waste way too much food in Australia (see above).

Of course sometimes stress makes us less productive, so if you want to eat to combat stress add these to your list:

  • Asparagus;
  • Avocados (again!);
  • Blueberries (again -these babies are amazing!);
  • Cashews;
  • Camomile and green tea;
  • Garlic;
  • Dark chocolate (again!);
  • Oysters (not that practical unless you feel stress coming on in anticipation of how you might pay the bill);
  • Walnuts (again!);
  • Oatmeal; and
  • Oranges

The transition from a poor diet to a healthy one is not one that will occur over night. Drastically removing sugar out of the food chain is a similarly long road to haul, but the UK has already introduced a sugar tax on soft drinks. Alison Watkins, CEO of Coca Cola Amatil, has recently acknowledged (AFR June 7 2018) that this lies ahead for us in Australia too. Change is never easy; there will always be resistance to it because what we know is a great comfort to us. We get used to certain things like our diet and our chips at lunch time for example. It will take a while before our new offerings in our CTC café are fully accepted by all.

Fathers-Child-Custody-Rights-1030x437

We know one thing though and that is we are on the right side of history. Employers and those providing food into workplaces (as opposed to on the street food outlets where ultimately the free markets decides) have a duty of care to employees for their well-being. In fact, it’s a statutory requirement under our Work Health and Safety Act 2011. Everyone wants our workers to return safely to their families or friends each night. We should also want that they return home healthy so they are able to participate as fully as they wish physically, mentally and emotionally. A sound diet plays a key role in enabling this.

I also think, as a society, we want one more thing – that those who are attending courses to learn critical information, knowledge and skills to undertake high risk work activities have been alert all day and haven’t dozed off in that difficult first hour after lunch. Excessive secretion of insulin from starchy, sugar-rich food floods the brain with serotonin and melatonin and we inevitably succumb to that urge to join Noddy and the rest of his friends in la la land. Let’s hope that doesn’t happen to us as they are demonstrating tying that essential safety knot!

Going South with Wes farmers

20 Tuesday Feb 2018

Posted by Burning Manager in Uncategorized

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6 thinkings hats, Andrew Formica, Australian Financial Review;, B&Q, black hat, Bunnings, Bunnings UK, DIY, Edward de Bono, enterprise risk management framework, Fairfax Media, Glass Lewis Policy, governance, governance 101, Governance Australia, Karl Weick, over-boarding, risk appetite, risk tolerance, Wesfarmers

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It’s not like me to do a purely business blog as my regular readers will know. But hey it’s a new year so let’s break with tradition. In a rare moment of foresight in 2016 I spoke to our brokers about our holdings in Wesfarmers (one of Australia’s best performing publicly listed companies) when I heard they were contemplating a foray into the UK DIY market. I don’t profess to be much of an analyst, but having spent literally years of my life in DIY stores in both the UK and Australia I can say I am something of an end-user expert in both markets. On hearing of Wesfarmers ‘ambitious’ plans for Bunnings in the UK I put our brokers on watch. When it was confirmed, a sell order went in.

News recently of the write-down of the UK division of Bunnings (a Wesfarmers subsidiary) finally vindicates my position. I’m ok, but by no means could you call me  a savvy investor, but I spotted the problem when very few others did not. Certainly Fairfax media didn’t (publishers of the Australian Financial Review). I wrote an email to Michael Smith of the AFR on this very topic in January 2016 and got the response back that then CEO Goyder is ‘notoriously conservative  with acquisitions…and I tend to think they have done their homework..’

Turns out they hadn’t. This had me thinking about cricket and our recent Ashes win over the ‘Poms’. At first glance there may be few parallels between cricket and retailing but let me argue the counter-point. In cricket barely any nation wins away from home. Pitches are prepared (doctored – is that too harsh?) for home players who exploit their superior local knowledge. Same is true for retailing. Local retailers know local markets and consumer patterns best. While the drive to do DIY might be a universal one, the patterns of buyer behaviour vary nation by nation. To think you could supplant your Australian based stores ‘lock stock and barrel’ into an already well serviced market thousands of miles away is folly.

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What troubles me as an investor is that this now pretty apparent folly went unnoticed or unchecked,  begging  the question about what layers of defense were breached permitting this foolhardy decision to slip through the the keeper as it were! Firstly the proposal must have gone to the Wesfarmers Board. How on earth the proposal could have been given the green light by this august body of men and women with decades of experience in the business world between them is beyond me, and I suspect millions of Australian superannuation holders who each have a stake in Wesfarmers performing well. Wesfarmers has a Board of nine and by no means could you call this lot ‘knuckle heads’ despite making a ‘knuckle head’ decision that wiped squillions ( well in excess of $1bn) off the value of the business. I can only speak for my company but that would have me at home on seek.com.

Every Board of repute, and certainly my little old Board, has an enterprise risk management framework which is a risk blueprint for how the unhappy bedfellows of opportunity, safety and  compliance can get along. Nestled in this lengthy tome will be a couple of key nuggets – risk appetite and risk tolerance. By all accounts these were not considered at Wesfarmers and it alarms me as to why not. It would appear that this fundamental tenet of governance (governance 101), whereby the Board has a pre-determined risk appetite and this informs decision making, was absent. To have entered the UK DIY market against the strength of B&Q in a country in the northern hemisphere known around the world as a nation of shopkeepers beggars belief. To get that through surely their risk appetite was set at ‘we’ll give anything a crack’.

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There are a couple of possible reasons why the Directors (representing us as shareholders no less) were asleep at the wheel. The first place to look is neuroscience. Aside from ‘group think’ which most people are familiar with, there are a number of other strategic decision making traps that I would assume the Directors are cognisant of and  have strategies to ensure don’t arise. If optimism bias arose how was this checked? Did the Directors all wear the de Bono black hat on the UK Bunnings expansion idea? If so they can’t have worn them for long.  Did they snap shut the window of realism too soon because each Director thought that the others must know better if they were all speaking for the motion – a  phenomenon known as pluralistic ignorance. This is social psychology 101 which was exactly where I learnt it. Was there, what Karl Weick of the University of Michigan calls, consensual neglect? Or diffusion of responsibility perhaps? These are smart people. There are at least 16 Bachelor and Masters degrees in the mix according to their profiles (with the exception of Tony Howarth  AO who doesn’t include his qualifications). Come to mention it there are three Directors with Australia Awards (two AOs and an AM).  So I think I would be doing a disservice to them even suggesting that they don’t know this neuroscience and psychology stuff.

workload

There must be another reason. That took me to the Wesfarmers website and the Directors’ own profiles and I think I might just know how this so called ‘debacle’ (AFR 9 Feb) came about. A quick glance there will show that this is a very busy group of individuals. In fact their corporate governance must occupy much of their working lives and beyond. A rather startling fact for me was that between them they share 45 Directorships, or roles I would equate with being a Director and 11 Chair roles. Take out one performer who seems to have a light, but you might consider appropriate workload, and the average Board/advisory involvement rounds to 7 each! The US Glass Lewis Policy has a limit of 5. Rules of thumb around this in Australia seem hard to find but I recall Governance Australia saying once that three was a maximum figure and only two if you had a Chair’s role. Well under the Wesfarmers average.

I would have thought the cognitive capacity to consider and properly evaluate complex proposals brought to the Board table is diminished by the complexity and involvement in other governance activities. Putting the obvious question of potential conflicts of interest aside, it is hard to understand how the right amount of fresh thinking time can be devoted to complex, time consuming tasks that can impact the lives of everyday Australians when pulled in so many different directions at once. By the way there is a legal duty under the Corporations Act 2011 to certain obligations and fiduciary duties apply.

If Wesfarmers is to get this right and get their ‘swagger back’ (a la Andrew Formica) a good place to start might be delayering the amount of distraction that the Directors, whom we entrust as Shareholders to do what’s right by the Company, have in their governance portfolios. Let’s be honest we all want Wesfarmers heading north not south. Oops that’s what got them in trouble to begin with!

 

The Tesla: A Feat of Daredevil Do

15 Tuesday Dec 2015

Posted by Burning Manager in Uncategorized

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Australian Financial Review;, Daredevil, Eldon Musk, Environment, IP, Jeremy Clarkson, Jessica Jones, Master of None, Millenials, Model X, Netflix;, Prius, Tesla, Wilson Fisk, YouTube

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I sat down to watch TV last night with my soon to be 19 year old son. The communication gap between baby boomer and millennial can sometimes be a wide one. To be honest there is very little in the way of taste in television we share in common. Invariably when I stumble across a series that we might both agree on he has watched it. Netflix has helped and he is able to steer me towards some shows of merit e.g. Marvel’s Jessica Jones or the comedy  Master of None. Too late sadly to watch together.

Last night was different though. We didn’t watch Netflix, we didn’t watch Foxtel and we didn’t watch terrestrial television. Instead we watched a thirty minute YouTube Clip together that we beamed via his MacBook onto our projector screen. In doing so we found a nexus between our love for technology and concern for the environment. Now a half hour YouTube about the environment doesn’t sound like a stimulating night’s viewing especially one might suspect for a 19 year old. Add to this the fact that it  was a product launch!

But it was riveting. It was Eldon Musk’s (of Tesla fame) launch of the new Model X transportation disruptor.  Far from a polished performer Musk takes you through the innovations that make the Tesla Model X such an inspiring design achievement. It challenges and often turns on its head the traditional approach to motor vehicles. No longer is the electric car the domain of the quirky and the environmental front-runners ( a la the Prius). Rather here is a vehicle that even Jeremy Clarkson may now want in his garage.

I was drawn to Musk in a piece I read in the Australian Financial Review about Tesla giving away their IP for their technology. Tesla spokeswoman Alexis Georgeson said recently.

“We released the Tesla Model S in June of 2012 and expected other manufacturers to create cars with similar performance and range, but nothing comparable came along,”

By releasing the patents, she said, Tesla hoped to spur consumer acceptance and even create a network of supporting businesses, like car charging stations and mechanics. Of course growing the pie, which IP sharing is likely to do, is good for Tesla. As Wilson Fisk says on Daredevil – currently playing on Netflix – we all rise with the tide. Regardless of some of the by-product benefits, the environment will end up thanking Musk and his associates. Finally our love affair with gas guzzling cars might be at an end. Car envy now is starting to focus on the unthinkable – a vehicle powered by a battery and not the internal combustion engine. Think about it…tomorrow’s young people tinkering about on cars may well be chemists rather than mechanics. Whatever happens, the future is looking a lot brighter than when the Prius was the only viable alternative.

It was a half hour of viewing to be savoured. Communicating meaningfully  across the generations is never easy. Finding common ground is one good way to start and maintain that engagement. I await Musk’s further Tesla product launchs for more than the obvious reasons.

War – What Is It Good For?

17 Tuesday Nov 2015

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AFR;, Art of War;, Australian Financial Review;, Beirut attack;, Deepak Chopra;, Edwin Starr;, Financial Times;, Lucy Kellaway, Motown;, Narcos;, Netflix;, Paris attack;, Paris killings;, Sun Tzu;, the Seven Spiritual Laws of Success;, war for talent;, war metaphor;, Whitfield and Strong;

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In 1970 Edwin Starr recorded a song written by Norman Whitfield and Barrett Strong that was produced on the Motown label. It was a protest song written about the Vietnam War and was a huge hit worldwide. Despite being released 45 years ago, when it is played it still seems to resonate, partly I guess because war is something that persists and its value is still questionable. In recent weeks we have seen the outrage that terror brings from the Beirut attacks, the downing of the Russian airliner in the Sinai, to the Paris killings. A not surprising response to that has been the declaration of War against the perpetrators. Whether this is necessarily a bad thing is much more in the realms of a military strategist (which I’m not) to determine.

Rather I want to talk about the over-use of the word ‘war’. When you over-use a word it takes the sting out of it. For example the ‘F’ bomb is now so frequently peppered into modern parlance that it’s shock value has diluted. We have the war on terror, the war on drugs, war on crime, war on cancer, the war on want, the war on poverty and the war for talent to name but a few. I suspect that the use of ‘war’ as a metaphor is deployed for a number of reasons:

  1. It suggests we’re really serious about things now. After all no-one goes to war lightly;
  2. It suggests a real sense of campaign and co-ordinated planning. No-one can win a war unless all military resources are effectively deployed;
  3. It also suggests casualties. In order to prevail, sacrifices will need to be made but the greater good is more important;
  4. It suggests an enemy with less moral authority than us (although they are saying the exact same thing on the other side).

So, straight away, the word ‘war’ starts to seem inadequate at best or inappropriate at worst in most situations. Take drugs for example. I’ve been watching the excellent Netflix series Narcos  and it is clear that the whole drug trade is a complex web of competing or coinciding interests and not as straight-forward as say fighting the Hun. Outside of the horror of a conventional battle between two nations (the true definition of war) everything gets a lot more fuzzy. The war on cancer is surely an oxymoron. To kill is the mechanism by which wars are won. The war on cancer is presumably to save lives. Same applies to want or poverty…indeed quite a lot of the want is a by-product of the various wars being raged from time to time be it in Africa or in the Middle-east at present.

The greatest ‘distortion’ of the word ‘war’ has to be the much used term now for getting and retaining your valuable staff. As if the words ‘attracting and retaining our valuable staff members’ is not emphatic enough, the phrase ‘the war for talent’ is being used in its place. It’s faddy, it’s inaccurate and it’s just plain wrong. As Lucy Kellaway in her recent column in the FT and AFR pointed out – where is the enemy? When I went to business school it was very trendy (and may still be) to quote Sun Tzu (The Art of War) as a short-cut solution to managerial problems. To confront and solve your managerial challenges armed with a copy of said tome is not that helpful. Let me quote.

‘The best leadership destroys the enemy’s plan.’  Not sure Harvard Business Review would concur and they bang on about leadership a lot.

‘Next best is to destroy their alliances.’ Once again not so sure. Maybe better to look at being smarter, leaner and more responsive.

‘After that comes the destruction of his army in the field.’ Hmmmmm.

‘Worst of all is to attack fortified cities.’ I’m with you there big fellah!

On first read that sounds like military strategy and not of great help to a manager, say, grappling with the reputational damage of a failed tailings dam in Brazil (a la BHP Billiton and Vale). It’s time we put the war books and war references down and looked to other avenues, softer ones perhaps, that  might speak to how we can get really good people to join us and then stay with us – once known euphemistically as the loyalty effect.

Of course being the ‘naysayer’ and the ‘anti-guy’ can always be seen as easy. My critics might pose a tougher question and demand that I come up with some suggestions of my own. So here goes. Let me play devil’s advocate and address some ‘War for Talent’ issues.

from The Art of War: ‘Train the people (talent). Discipline them (the talent). They (the talent) will submit.’ …awkward!

from The Seven Spiritual Laws of Success (Deepak Chopra):  ‘And when we realise that our true Self is one of pure potentiality, we align with the power that manifests everything in the universe.’

To offer the potential to truly grow and truly create has to be much more alluring than some borrowed and distorted tactics translated across from the theatres of war. Recent events have taught me one thing. We need to be kinder, gentler and more forgiving to ourselves, our  team members and our community because there is enough of the other stuff happening out there to go around without adding to the mix. Let’s end poverty and want, let’s cure cancer, let’s solve the drug scourge and let’s all get talented individuals to join our teams because we will support them, nourish them and sometimes even let them go to grow. The last thing anyone in their right mind would want to do is place them anywhere near a ‘war zone’ in whatever shape or form.

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