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YEARBOOK 2009
RVA Yearbook 2009
Contents
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2
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gymnasium, cinema, indoor heated pool and spa, craft room, Greenwich NSW 2065
woodworking room, putting green, an outdoor chess set and www.waterbrook.com.au
bowling green. A state-of-the art emergency call system is in
all apartments and recreational areas just in case you need it.
Industry
Chairman’s Report
By Simon Owen
I am pleased to present my first report as villages now have their tax exempt the next forty years. But the opportunity
Chairman of your Association. status guaranteed through a specific gets really exciting if we can lift the
This year has been a challenging year clause to be inserted into the Act. The penetration rate of villages in Australia. We
for our industry with the pressures of the change will protect Victorian seniors have a great product to sell and the RVA
global financial crisis. From my discussions from paying thousands of dollars in can be at the forefront in promoting
with over 200 members during the course stamp duty. retirement villages as a great lifestyle
of the year it is evident that there are two The RVA has also been active in key choice with prospective residents,
immediate issues facing the industry— legal cases in Queensland that have the regulators and of course, the broader
access to capital and a slowdown in the potential of negatively impacting future community.
sales cycle. village operations and significantly impact Thank you to each of the RVA’s
Whilst it would appear that sales have returns. Regional Committees for the considerable
improved in the last quarter, it is still The first year of the Queensland RVA time they invest in assisting the association
evident that access to capital is a key office has been a great success, with and without whose support the RVA would
impediment to the growth of our industry. membership growing week by week, a cease to function. They are the finger on
Access to capital is likely to be an enduring stunning inaugural conference (with over the pulse of state and local issues.
problem in 2010 and it is difficult to 110 delegates in attendance) and a number I would like to acknowledge the tireless
foresee any immediate relief in this area. of well attended professional development contribution of Jane Holdsworth, the
Notwithstanding the challenges of the events. former CEO of the RVA who departed in
GFC the RVA has progressed a number of Advocacy continues to be one of the March this year. We welcome our recently
key initiatives and outcomes in 2009 that RVA’s key activities and we continue to appointed CEO, Andrew Giles, who in a
will assist the industry to move forward in a strive to preserve our freedom to operate in short period of time has already made a
sustainable manner. It has been a year of a sustainable and responsible manner. This great contribution to the association.
tremendous challenge and of great is essential for owners, operators and I would like to sincerely thank the
opportunity. developers who are looking to make members of the RVA Board for their
Key achievements for 2008/09 have investment decisions that require long-term diligence, guidance and support. They
included: legislative certainty. work tirelessly for the industry. They offer
• Working with the ATO to achieve fairer During the year the Board reviewed the their time voluntarily for the betterment of
GST treatment on village development Association’s Advocacy and Member the industry and their commitment is to be
and acquisitions and housing Services Priorities for 2008-2009. These commended.
affordability. concentrated on the key member services I would especially like to thank Tom
• Continuing to influence government of advocacy, communication, sustainability Galletta for his outstanding service as
policy through stakeholder facilitation and creating a high-performance immediate past President of the RVA. His
and contribute to the government’s organisation. The RVA is now pursuing support and wise counsel is greatly
ageing initiatives. more than 40 advocacy priorities. appreciated and the legacy he leaves the
• Having ongoing dialogue with the Earlier this year I enjoyed the RVA is truly significant.
NSW government (Office of Fair opportunity to be acting CEO of the RVA Finally, thank you to all our members
Trading) in respect to the review of the for approximately five months. This gave for your contribution to our industry. We
regulations for retirement villages. The me a tremendous first hand view of the are all responsible for ensuring that the
RVA has provided instrumental advice challenges facing the industry, the future is filled with opportunity and
to ensure a fair go for operators and opportunities ahead and innovative sustainable in its growth pattern.
maintain the standard of the industry. practices being adopted across the sector. It I am filled with great optimism about
• A major victory in respect to Stamp also filled me with great confidence about the future of our industry. We owe it to
Duty in Victoria (with proposed our future. ourselves and our community of older
amendments to the Duties Act that As President I have a specific issue Australians to provide great environments
would have negatively impacted which I am keen to focus on during the for people to live in.
retirement villages) that has resulted in course of my role. The retirement industry I look forward to catching up with you
savings of millions of dollars to has a solid future ahead based on the all at the National Conference.
operators and residents. Retirement significant ageing of the population over
4
RVA Yearbook 2009
Industry
Derek McMillan, Wayne Hogan Kevin Ryan Andrew Macintosh Roger Kwok
Deputy Chairman
Stuart Nicolson Dennis Chamberlain Tom Galletta Michael Fallon Angus Kukura
RVA VISION
To be valued and respected nationally by all our
stakeholders for enhancing the viability and
excellence of the Australian retirement village industry.
RVA MISSION
As the peak body, we aim to lead the building and
growth of a sustainable and responsible retirement
village industry that will ensure our member villages
are the preferred lifestyle of older Australians.
5
RVA Yearbook 2009
Industry
CEO’s Report
By Andrew Giles
When we started the 2008/09 financial members in difficult times. closely with the church and charitable
year, who would have thought that our Now is the time to stick together – as sector to ensure that we can expand our
world would be turned upside down? one group with a common goal of a presence and deliver value to this group.
The economy was in full flight, strong and prosperous retirement village
Our Future
unemployment levels at historic lows, industry, creating an industry that
We have developed a Strategic Plan to
property markets bullish and our industry provides the best outcomes for our
guide the organisation in the next three
was thriving. It seemed the boom would communities and for older Australians.
years and to fulfil our commitment to our
never end. One loud voice is better than many
valued members. It will focus on four
September 2008 marked a moment small echoes in the darkness! That is why
key areas:
in history for us all – the global financial being a member of the RVA is more
• Delivering greater value to our
crisis. important than ever before.
members – with a particular focus on
Like all industries worldwide, the It is absolutely critical that for the
increasing the penetration rate of
retirement village industry has faced retirement industry to prosper and to
people over 55 into retirement
many challenges in the past twelve have freedom to operate and push back
villages
months. However, the RVA has sought to on ever increasing consumer advocacy
• Advocacy – leading the industry on
continue its role, in the face of adversity, that there is a well funded and supported
key issues that ensure we have
to lead and support our members. association representing owners,
freedom to operate
Membership continues to increase. operators, developers and managers.
• Accreditation – ensuring that our
The RVA currently has more than 685
Our Industry industry can self regulate in the
members nationally including:
Between 2009 and 2024 the population delivery of quality living for older
• 500 village members
of people over 55 years of age will grow Australians as it has done for decades
• 125 regional associate members
by more than 2.6 million people – more • Market intelligence – providing up to
• 40 national associate members
than twice the rate of the general date cutting edge research and
• 20 industry members
population. Of this, those over 75 years information to our members
We continue to be the only
will grow by nearly 1 million people. Our goal is for it to be an absolute
organisation solely focussed on the
The need for retirement villages is must to be a member of the RVA if you
future growth of retirement villages in
massive. operate in the retirement village industry.
Australia.
In Australia we currently have 1850 Key planned activities for 2009/10
The GFC has brought with it the need
villages with approximately 115,000 include:
to respond, to re-think, to innovate and
dwellings and 160,000 residents. • New professional development
to find solutions to problems we hadn’t
Currently, 5.5% of people over the activities, including more information
seen in decades. Issues like how to
age of 65 live in a retirement village. and training for the industry to
access finance for projects, how to
There is much we can do to positively achieve greater strength
manage tight budgets, how to ensure our
influence this statistic. • New exciting events, including social
industry could freely operate and grow
The top five private operators control networking and professional
without adverse legislation or
greater than 40% of retirement market. development
regulations, how to achieve sales in
These include the likes of Aveo, Lend • Overseas fact finding tours for our
sometimes difficult markets to name a
Lease Primelife, Stockland, Aevum and members to understand best practice
few.
Australian Unity, all of whom are active in retirement villages worldwide
We have survived well so far and are
members of the RVA. • Benchmarking of the industry, to
now strongly positioned to grow again.
In addition, the church and facilitate greater information back to
The RVA (supported by a network of
charitable sector also has around 40% of operators and prospective industry
industry professionals who freely
the market and is currently growing its entrants (salaries, management fees,
dedicate their time at a regional
share through acquisitions and sales rates etc)
committee and national board level), has
expansions. The RVA continues to work
continued to achieve results for our CONTINUED ON PAGE 8
6
Affordable lifestyle in communities that care
UnitingCare Ageing operates more than to other useful services and facilities. As a
seventy independent living villages that enable major provider of community care, UnitingCare
people to maintain independence in stylish Ageing can also offer community services to
self-contained units, while enjoying a great our village residents.
community atmosphere.
As the single largest provider of aged care
Located both in suburban and rural areas, our services and accommodation in New South
independent living villages offer you freedom Wales /ACT we feel very confident we have
from building and garden maintenance, a the right place for you at an affordable price.
sense of security, companionship, and access Come see for yourself...
Industry
CEO’s Report
• A planned national open weekend, • Achieved some major victories in conferences. Our congratulations go
where we will invite every respect to key advocacy priorities (as to all of the regional winners and
Commonwealth, state and local outlined in the Chairman’s report) also the 2008 National Manager of
elected member to visit and tour a • In respect to Government lobbying the Year, Kaye Dix from Parklands
village. We believe this will raise the and representation, the RVA met Village in Western Australia.
profile of villages in government and regularly with the Ministers for
Accreditation
the broader community and have a Ageing, Consumer Affairs and Fair
The RVA continues to deliver a high
flow-on effect in sales through Trading Ministers, department heads
quality accreditation program that
increased media coverage at a and ministerial advisory staff to
ensures best practice industry standards.
national scale. represent the interests of members
This is of significant value not only to
• Increased research on key industry and raise awareness of the industry
residents and potential residents (which
issues including economic benefits, and the market in all states in
can translate into higher sales), but in
drivers of choice for residents, Australia.
ensuring that there is no requirement for
sentiments and feedback from our • Continued to present at many
Government to take an interventionist
160,000 residents currently living in significant summits and conferences,
approach as they have recently done in
villages across Australia. contributed to federal ageing
the health sector.
• Linking in with important issues initiatives, spoke to consumer groups
The RVA is in the process of
facing our community and and made industry representative
establishing even greater value in the
government including affordable submissions.
scheme by seeking third party
living for older Australians and the • Participated in a Federal Government
certification to ensure independence and
key role retirement villages play in Ageing Advisory Committee that
international recognition of our excellent
this area. offers the industry the opportunity to
scheme. In addition, the RVA is pursuing
influence government policy in the
The organisation a quality assurance “heart foundation”
area of seniors housing.
We have strengthened the organisation tick of approval style of accreditation
• Regional offices conducted regular
with some key national appointments that will provide significant market
Managers Forums that offered RVA
and excellent Regional Managers in each benefits to operators.
Regional Managers feedback on the
state. This has translated to great Of note is that the new ARVA
industry and successful networking
achievements this year: handbook, with new standards, will be
opportunities.
• Continued the focus on professional released at the 2009 National
• The RVA national conference
development for operators. This Conference in Sydney.
AdvantAge08 was held in Perth on
included the roll out of a national
11th-14th of November 2008 at Member Communications
professional development series in
Burswood Entertainment Complex The development of the RVA database
respect to economic drivers and legal
and attracted nearly 450 delegates. has made member communications
issues. MacroPlan Australia and
• Regional conferences were held in easier and more frequent. We are
Gadens Lawyers workshops were
NSW/ACT, VIC/TAS, SA/NT, WA and intending for this to be an online
attended by nearly 350 industry
QLD. They provided educational and resource in the next twelve months
participants. We are seeking to
networking opportunities for which will be of great benefit to the
establish a certified manager’s course
members and associate members and organisation and industry.
aimed at enhancing the skill base of
attendances were at record levels. Communications remains a core
managers and assisting in recruiting
The RVA continues to receive great function of the RVA we have sought to
skilled and enthusiastic people into
support from sponsors at all regional provide our members with up to date
the field.
conferences and our sincere thanks information through the website
• Ran several events, industry
go to these valued partners. (fortnightly News Monitor) and regular
breakfasts and lunches that attracted
• The Manager of the Year awards were
hundreds of participants
presented at the various regional CONTINUED ON PAGE 10
8
Modcoms Voice Data Mobility Pty Ltd
Industry
CEO’s Report
updates by the CEO and key staff on look for the ARVA logo and seal, giving I would like to offer my heartfelt
major industry issues. them confidence that a village has met thanks to the staff of the RVA in the
The RVA website has had a the 29 ARVA standards. national and regional offices for their
significant upgrade to add better value enthusiastic, committed and inspired
Media
for members by providing increased efforts throughout 2008/09 – a year that
The RVA has been proactive in
information about RVA activities. This has been tough for all.
generating media stories to promote the
now includes a blog section and 2009/10 is shaping up to be the best
benefits of retirement living and to
dedicated member section (which will yet for both the RVA and the retirement
respond to key issues. Recent media
soon include research and information village industry. I certainly am excited
coverage has included major
only available to our members). about the prospect of assisting our
metropolitan and local newspapers,
valued members to grow their businesses
Member surveys local and regional radio, and industry
and to ensure Australia’s premier growth
Industry feedback is critical to identify newspapers and magazines.
market in property continues to thrive.
issues of concern. The RVA has and will
Acknowledgements
continue to conduct regular surveys with Andrew Giles
Finally I would like to acknowledge and
our industry to assist with the flow of Chief Executive Officer
thank the many people who have
information back to our industry. Key
contributed to the success of the RVA
issues will include sales and marketing,
during 2008/2009.
salaries, management fees and the ability
I am fortunate to have a strong and
to benchmark.
supportive Board. In particular, our
A working group and committee was
Chairman, Simon Owen, who has
established for GST lobby representation
provided outstanding guidance during
to the Australian Tax Office, which is
the year and also acted as CEO for the
now meeting regularly with assistance
organisation for five months during
from our great industry supporters like
2009. Many of the RVA’s recent
KPMG and Blake Dawson.
achievements are a result of Simon’s
During 2008 nearly 1500 residents in
vision and ability to execute successfully.
RVA member villages throughout
I would also to thank all of the
Australia were randomly surveyed as part
members of the national and regional
of the ARVA accreditation process. The
committees who dedicate their time on a
overwhelming majority of residents
voluntary basis to make great strides in
surveyed were very satisfied with all
our industry.
facets of retirement village life, which
The RVA would not exist without our
shows the great performance of our
members, and we sincerely thank you all
accredited villages.
for your ongoing support.
Resident Information Packs Thank you to our valued sponsors
In 2007 the RVA posted out over 4500 who financially supported RVA events
resident packs to seniors interested in the and promotions through the year and
retirement village lifestyle. The packs are also our industry supporters, who have
tailored to each state, including lists of been on hand to provide advice and
RVA members’ villages and consumer guidance on specific industry matters.
information booklets. The packs also Many do this pro bono, which during
contain a Questions & Answers booklet tough financial times cannot be
and information about accreditation. underestimated in respect to the
Prospective residents are encouraged to generosity shown.
10
RVA Yearbook 2009
Industry
Standards Report
The Australian Retirement Village Accreditation (ARVA) should translate to increased ease of interpretation of standards
Scheme has steadily grown in 2008/09, evidenced by the and facilitate higher numbers of applications.
number of applications.
APPLICATION PROCESSING
A total of 69 villages were accredited during the period,
The average time for the accreditation process to occur, that is
which was up 40% on the previous year.
from application to the granting of accreditation, has remained
A 20% increase is planned for 2009/10, meaning close to
at about 6 months throughout the year. With greater planned
90 accreditations achieved.
resourcing we anticipate improving on that in the next year.
This highlights the industry’s strong interest in accreditation
and the importance of a robust self regulation process that COURSES/WORKSHOPS
ensures the quality and standard of our industry. How to Prepare for Accreditation Courses and Surveyor
2009/10 will also see an increased focus on marketing the Workshops have been successfully run back to back in most
benefits of accreditation, which should see significantly higher regions on a six monthly basis.
penetration than achieved previously. Managers about to embark on the accreditation process
have remarked how invaluable the course has been in
Applications vs Accreditations 2008-2009 FY
clarifying the process and dispelling many myths around
80
accreditation, particularly that it is incredibly arduous or
70 complex. Those accredited have commented on how valuable
the process was for improving business and resident outcomes.
Applications/Accreditations
60
Workshops for existing surveyors have proven extremely
50 beneficial in updating and up-skilling surveyors in their role.
August
September
October
November
December
January
February
March
April
May
June
11
RVA Yearbook 2009
Industry
Member Benefits
and Services
Why you should be an Networking Opportunities • Assistance in interpreting new
• Invaluable networking opportunities legislation
RVA member and forums at local, state, and • Responding to government
Membership of the RVA is a must for national levels discussion and issues papers
your business. The RVA is the peak • Linking your village or company with
national body representing and Industry Representation
professional industry service
promoting the retirement village industry • Providing timely information about
suppliers
as a lifestyle choice, providing regulatory and legislative updates
• Regular access to meet with
leadership to the industry since 1989. • Representing the industry on
retirement village owners,
With an underlying strength of over 680 government and community panels
developers, operators, managers and
village and associate members, the RVA and advisory groups
investors
plays a critical role in the ongoing • Facilitating access to government
growth and sustainability of the Industry Advice leaders and officers to ensure
retirement village industry and has • Advice from valuable industry members are represented with a
achieved success in lobbying for specialists on specific issues such as strong industry voice
legislative and policy changes. legal, insurance, economic, finance
Accreditation
The RVA provides a range of and lifestyle matters
• Discounted retirement village
comprehensive member services that • Free initial legal telephone advice
accreditation fees for village
support your business, including regarding workplace services from
members
advocacy, accreditation, research, one of Australia’s top legal firms
• Providing assistance and training on
promotion and communications.
Professional Development how to become accredited, and
• Seminars, workshops and business improvement
As a member, you can conferences including the RVA’s
Corporate Partnership
annual regional and national
maximise the value of conferences
Opportunities
your membership by • Special member rates for the RVA’s
• Providing exclusive benefits for RVA
Corporate Partners who provide
accessing the following national professional development
financial support for advocacy and
benefits: program
research priorities that will benefit
Sponsorship and Advertising the industry
Business Promotion
• Sponsorship and advertising activities
• Listing your village or company on Research
that provide exposure for your
the RVA website • Providing Industry research and
business to targeted audiences,
intelligence
Communication particularly through the Member
• The latest regulatory, legislative, Services Directory. Promotion
industry and business news including • Positively representing and
publications, online newsletters, Members benefit from promoting retirement village living
research, website content and the following RVA through mainstream media
bulletins nationally.
• The RVA Year Book
services:
Powerful Advocacy Contact the RVA today on 1800 240 080
Specialist Insurance
• Representation and lobbying on our to find out more about membership.
• Specialist retirement village
insurance through VillageWISE at members’ behalf to ensure the
competitive rates ongoing growth and viability of the
industry
12
RVA Yearbook 2009
Industry
Advocacy and
Member Services
Our Vision RVA Objectives
To be valued and respected nationally by
1. Advocacy
all of our stakeholders for enhancing the
a. Fairer Taxes and Legislation
viability and excellence of the Australian
• Lobby for fairer GST treatment on village development and acquisition
Retirement Village Industry.
• Protect the legal rights and viability of the industry
• Advocate equitable Government taxes and rates for residents and village
Our Mission operations
As the peak body, we aim to lead the b. Senior Housing Affordability
building and growth of a sustainable and • Encourage more affordable housing for seniors
responsible retirement village industry • Influence Government policy through stakeholder facilitation
that will ensure our member villages are • Contribute to Federal ageing initiatives
the preferred lifestyle choice of older c. Leading Industry Voice
Australians. • Be the primary source of industry intelligence
• Be an authoritative and effective industry member representative
• Initiate and maintain liaison with consumer groups
• Prepare articulate and rational representative submissions on behalf of the
industry
• Co-operate with industry bodies for policy change
13
RVA Yearbook 2009
Industry
National Committees
14
They
understand
my business
{because we understand the realities of the Retirement Village Industry}
Bank of Western Australia Ltd ABN 22 050 494 454 AFSL 236872
RVA Yearbook 2009
Industry
16
Retirement is the celebration of a job well done
,IFEåATåANå!EVUMåVILLAGEå
ISåEXACTLYåWHATåRETIREMENTå
LIVINGåSHOULDåBEånåFESTIVEåANDå
FULlåLLINGå!åLIFEåOFåVIGOURåANDå
VARIETYåOFåFRIENDSåANDåFUNå
ANDåOFåBOUNDLESSåRELAXATIONå
ANDåREWARDå
3INCEååWEåHAVEåHELPEDå
THOUSANDSåOFåRESIDENTSå
ENJOYåTHEIRåBESTåYEARSåINåOURå
RETIREMENTåCOMMUNITIES
sååLEVELSåOFåCARE
sååRESIDENTS
sååRETIREMENTåCOMMUNITIES
sååDEDICATEDåSTAFF
såå/VERååYEARSåINDUSTRYå
EXPERIENCE
0HONEååååååWWWAEVUMCOMAU
pmyhill@oloughlins.com.au or pdoolette@oloughlins.com.au
RVA Yearbook 2009
Industry
Corporate Partners:
Supporting Research
The high cost of securing professional advocacy services and and research information to priority involvement in RVA
commissioning top-level research has led to the Retirement professional development activities. Being a Corporate Partner
Village Association offering an innovative way to seek financial of the RVA demonstrates a firm commitment to the ongoing
support. The RVA’s Corporate Partner program allows the growth of the retirement village industry, and will brand a
Association to deliver on its core objectives for 2008-2009 and business as a champion for industry development.
beyond. The program to attract Corporate Partners is an There are significant tangible benefits too, including
important initiative for the RVA, which has traditionally relied
recognition at major national RVA events, acknowledgement in
on the voluntary efforts of hard-working Regional Committees
the RVA Year Book, complimentary tickets to the Business
and the goodwill of associate members to provide technical
Excellence Awards in 2009, invitations to exclusive RVA
advice and guidance in its advocacy and research work.
However, in a dynamic operating environment, advocacy forums, and other ongoing promotional opportunities.
issues for the industry continue to evolve, and the RVA Corporate partnerships with the RVA are available on 4 levels
understands that it cannot continue to rely on this outstanding as detailed below:
voluntary support. The Corporate Partner program will assist • Platinum (limited to 2 principal partnerships ) – $50,000
the RVA to drive its strong advocacy agenda, as well as support • Gold (limited to 5 partners) – $20,000
the development of a new research database and Member • Silver (limited to 10 partners) – $10,000
Services Directory that helps members better understand trends • Bronze (unlimited) – $5,000
in the retirement village industry. Four levels of Corporate
Partnership are available, each with varying levels of Further details about the RVA’s Corporate Partner program are
engagement, ranging from exclusive access to RVA advocacy available on the RVA website – www.rva.com.au
18
EXPLOR E
TH E FUTU R E
NTU ROUS
D EVE LOPING ADVE
NS
R ETIR E M E NT OPTIO
Relax.
You’ve earned it!
RVA Yearbook 2009
Industry
Corporate Partners:
Supporting Research
PLATINUM – $50,000 GOLD – SPONSOR $20,000
(LIMITED TO TWO PRINCIPAL PARTNERSHIPS) (LIMITED TO 5 SPONSORS)
Speaker opportunities Speaker opportunities
• One speaker at the RVA National Conference (attended by • One speaker at each RVA Regional Conference
over 400 delegates)
RVA Events
• One speaker at each RVA Regional Conference
• Complimentary invitation to the CEO Forum
• One speaker at the Business Excellence Awards
• A tailored RVA event or product launch
RVA Events • Complimentary invitation to all RVA ‘premium’ events e.g.
• Complimentary invitation to the CEO Forum networking breakfasts and industry workshops (excluding
• A tailored RVA event or product launch conferences and non-applicable events)
• Complimentary invitation to all RVA ‘premium’ events e.g. • Complimentary invitation to all RVA Regional
networking breakfasts and industry workshops (excluding Events/Professional Development Forums and smaller scale
conferences and non-applicable events) events organised in specific regions (excluding conferences
• Complimentary invitation to all RVA Regional and non-applicable events)
Events/Professional Development Forums and smaller scale
RVA Advertising
events organised in specific regions (excluding conferences
• Half page advertising in the Supplier Handbook – the RVA
and non-applicable events)
Associate Members Services Directory
RVA Advertising • A profile in the Supplier Handbook
• Full page advertising in the Supplier Handbook – the RVA • A listing in the Supplier handbook
Associate Members’ Services Directory • Twice a year – a company overview listing in the RVA
• A profile in the Supplier Handbook News Monitor (National send out)
• A listing in the Supplier Handbook • Company overview listing on Regional Industry Newsletter
• Four times per year – a company overview listing in the
RVA Yearbook
RVA News Monitor (National send out)
• Company profile/case study
• Company overview listing on Regional Industry Newsletter
• Company acknowledgement (Increased content)
RVA Yearbook
National Conference
• Company profile/case study
• Two delegate tickets
• Company acknowledgement (Increased content )
• Exhibitor Stand
National Conference • Satchel Company Insert
• Four delegate tickets
Packages for the RVA website
• Exhibitor Stand
• Base Listing (Name, Address, Number)
• Satchel Company Insert
• Logo
Packages for the RVA website • Website Link to your company site
• Base Listing (Name, Address, Number) • Listing plus 100 word profile linked to the soft copy of the
• Logo supplier handbook
• Website Link to your company site • Case study editorial on the RVA website
• Listing plus 100 word profile linked to the soft copy of the • Photo
supplier handbook • Priority Listing
• Case study editorial on the RVA website
Market intelligence
• Banner – top or bottom (Time limited banner displayed
• Regular updates on research and advocacy issues
quarterly)
• Photo
• Priority Listing
Market intelligence
• Regular updates on research and advocacy issues
20
Elynwood Services Group… A Complete Service Solution
Elynwood Services Group is a family owned, Quality Assured, Australian Business, established
and operating for over 20 years. Elynwood Services Group provides an extensive range of
specialised Catering, Cleaning and Associated Services to Retirement Village and Aged Care
Facilities.
At Elynwood Services we adopt a holistic approach and offer a tailored service that complies
with all client requirements.
Our business ethos has been to strive to achieve outstanding customer satisfaction. A focus
on improving the effectiveness and efficiency of our customer service delivery, is the prime
objective at Elynwood.
• Flexible but highly efficient and cost effective solutions for Catering,
Cleaning and Associated Services
• Convenient “one -stop shop” approach
• Food Safety Programs which are site specific supported by regular internal
and external audits
• Healthy and nutritious eating programs based on energy for life with well balanced menus
• Diverse menu range to cater for various cultures and dietary requirements
• Regular performance monitoring
• Marketing programs to increase awareness and participation
• A sustainable environmental approach
• Quality Assured Company
• Caring and highly trained Site Operators
• Available 7 days per week, 24 hours per day
A growing industry.
Industry
Corporate Partners:
Supporting Research
SILVER – SPONSOR $10,000 BRONZE – SPONSOR $5000
(LIMITED TO 10 SPONSORS) (UNLIMITED)
Speaker opportunities RVA Events
• One speaker at an RVA Regional Conference of your • Complimentary invitation to all RVA ‘premium’ events e.g.
choice networking breakfasts and industry workshops (excluding
conferences and non-applicable events)
RVA Events
• Complimentary invitation to all RVA Regional
• Complimentary invitation to all RVA ‘premium’ events e.g.
Events/Professional Development Forums and smaller scale
networking breakfasts and industry workshops (excluding
events organised in specific regions (excluding conferences
conferences and non-applicable events)
and non-applicable events)
• Complimentary invitation to all RVA Regional
Events/Professional Development Forums and smaller scale RVA Advertising
events organised in specific regions (excluding conferences • A logo/profile in the RVA Associate Members Services
and non-applicable events) Directory
• A Listing in the RVA Associate Members Annual Services
RVA Advertising
Directory
• Quarter page advertising in the Supplier Handbook – The
• Company overview listing on Regional Industry Newsletter
RVA Associate Members Services Directory
• A profile in the Supplier Handbook RVA Yearbook
• A listing in the Supplier Handbook • Company Acknowledgement (Increased content)
• Company overview listing on Regional Industry Newsletter
National Conference
RVA Yearbook • One delegate ticket
• Company acknowledgement (Increased content) • Brochure/Document seat drop
National Conference Packages for the RVA website
• One delegate ticket • Base Listing (Name, Address, Number)
• Brochure/Document seat drop • Logo
• Website Link to your company site
Packages for the RVA website
• Listing plus 50 word profile linked to the soft copy of the
• Base Listing (Name, Address, Number)
RVA Associate Members Services Directory
• Logo
• Photo
• Website Link to your company site
• Listing plus 50 word profile linked to the soft copy of the Market intelligence
supplier handbook • Regular updates on research and advocacy issues
• Case study editorial on the website
• Photo
Market intelligence
• Regular updates on research and advocacy issues
22
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Our services include:
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village
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t1SPWJEJOHUIFFYQFSUJTFBOEFYQFSJFODFUPOFHPUJBUFBOEQSPKFDUNBOBHFNBKPSDPSQPSBUF Steven Smith
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t&TUBCMJTIJOHEBUBSPPNTPSDBSSZJOHPVUFYUFOTJWFEVFEJMJHFODFPOUIFTBMFPSQVSDIBTFPG 1SPQFSUZ
retirement villages Melbourne
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Level 20 / 385 Bourke Street Level 12 / 77 King Street -FWFM&BHMF4USFFU T (03) 9670 6123
Melbourne VIC 3000 Australia 4ZEOFZ/48"VTUSBMJB Brisbane QLD 4000 Australia www.herbertgeer.com.au
Now more than ever, design excellence is critical to sustaining your industry advantage
Campbell Luscombe Folk Lichtman Architects - both recognised and awarded - are the architects for Australia’s foremost
seniors & aged care facilities, including Waterbrook Yowie Bay, Annesley Bowral, Lifestyle Manor Bondi, Treeview Gardens,
John Paul Village
6\YZPNUPÄJHU[VWLYH[PVUHSRUV^SLKNLJVTTLYJPHSYLZWVUZPIPSP[`HUKKLZPNUZRPSSZJYLH[LÄUHUJPHSS`]PHISLV\[JVTLZ
with successful and thriving senior communities
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RVA Yearbook 2009
Industry
Corporate Partners
24
PROUDLY AUSTRALIAN OWNED FOR OVER 25 YEARS
Industry
Corporate Partners
Village Care Pty Ltd David Nelson & Partners JSA - Kennedy Associates Architects
Level 2 / 89 King William Street, ADELAIDE, Baulkham Hills Business Centre, BAULKHAM 51 Nelson Street, ANNANDALE, NSW, 2038
SA, 5000 HILLS, NSW, 2153 Tel: 02 9557 6466
Tel: 08 8212 0166 Tel: 02 9659 9611 Kells The Lawyers
Westpac Bank DEM (Aust) Pty Ltd Level 15 / 9 Castlereagh Street, SYDNEY, NSW,
Level 26 / 275 Kent Street, SYDNEY, NSW, P O Box 5036, WEST CHATSWOOD, NSW, 2000
2000 1515 Tel: 02 4221 9311
Tel: 02 8254 1129 Tel: 02 8966 6155 Masterton Homes Pty Ltd
Donald G Henderson Solicitor Cnr Hume Hwy & Sappho Rd, WARWICK
FARM, NSW, 2170
NSW/ACT REGIONAL PO Box 850, GOSFORD, NSW, 2250
Tel: 02 4324 5688 Tel: 1300 446 637
ASSOCIATES Dorsal Media Meli Studio
40 Heath Street, ALBURY, NSW, 2640 Suite 5b Kirribilli Marina 1 Bradley Avenue,
Amaranth Life Pty Ltd
Tel: 0412 233 742 KIRRIBILLI, NSW, 2061
Level 36 Aurora Place/88 Phillip Street, Tel: 02 8920 3500
SYDNEY, NSW, 2000 Downsizing With Ease
Tel: 02 9252 5595 Unit 3 47 Day Street, NORTH SILVERWATER, Metropolis Group of Companies
NSW, 2128 Suite 203/410 Elizabeth Street, SURRY HILLS,
Anglican Retirement Villages NSW, 2010
Tel: 02 9748 8033
284 Castle Hill Road, CASTLE HILL, NSW, Tel: 02 9212 1201
2154 Edmonds & Associates
Suite 2D 1 Gurrigal Street, MOSMAN, NSW, Paclib Senior Living
Tel: 02 9421 5356
2088 Suite 2 Level 4/65 Epping Road, NORTH RYDE,
Australian Retirement Partners Tel: 02 9960 8244 NSW, 2113
PO Box 315, MILSONS POINT, NSW, 1565 Tel: 02 9889 5777
Tel: 0412 411 325 Emil Ford & Co
580 George St, SYDNEY, NSW, 2000 Peter Dalton Architects Pty Ltd
Australian Unity Retirement Living Services Tel: 02 9267 9800 P O Box 6243, NORTH SYDNEY, NSW, 2060
NSW Tel: 02 9955 8244
Empowered Living Support Services Limited
Level 6/88 Phillip Street, SYDNEY, NSW, 2000 Retirement Headquarters
Po Box 3247, GLENDALE, NSW, 2285
Tel: 02 9256 8715 68 Tulloh Street, WILLOUGHBY, NSW, 2068
Tel: 02 4941 7070
Baldwin Oates and Tidbury Tel: 02 9958 2488
FPA Architects International P/L
P O Box 45, GORDON, NSW, 2072 Silver Spirit Partners
Suite 501 Level 5/225 Clarence Street, SYDNEY,
Tel: 02 9499 2166 Level 29 Chifley Tower 2 Chifley Square,
NSW, 2000
Campbell Luscombe Folk Lichtman Architects Tel: 02 9299 1001 SYDNEY, NSW, 2000
Tel: 02 9238 4204
P/L Fusion Financial Solutions (Syd) Pty Ltd
10 Charles Street, REDFERN, NSW, 2016 Skyline Landscape Services
PO Box 4213 Penrith Plaza, PENRITH, NSW,
Tel: 02 9310 4211 20 Anvil Road, SEVEN HILLS, NSW, 2164
2750 Tel: 02 9674 1400
Cater Care Australia Tel: 02 4722 6971
PO Box 69, PARRAMATTA, NSW, 2124 Smart Caller NSW Pty Ltd
Gilmore Interior Design U3/585 Maitland Rd, MAYFIELD WEST, NSW,
Tel: 02 9635 5188 9 / 37 Nicholson, EAST BALMAIN, NSW, 2041 2304
Catering Industries Pty Ltd Tel: 02 8585 9200 Tel: 02 4949 2222
P O Box 456, CHATSWOOD, NSW, 2057 Graphic by Design St George Bank Ltd
Tel: 02 9411 1144 PO Box 3295, ERINA, NSW, 2250 Locked Bag 1, KOGARAH, NSW, 1485
Catholic Healthcare Limited Tel: 02 4365 6777 Tel: 02 9708 5900
PO Box 858, EPPING, NSW, 1710 Herbert Partners Pty Ltd Stan Manning & Associates
Tel: 02 8876 2100 P O Box 250, TUGGERAH, NSW, 2259 18 Leighanne Crescent, ARUNDEL, QLD, 4214
CB Richard Ellis Tel: 02 4353 5855 Tel: 07 5519 1000
Level 26 / 363 George Street, SYDNEY, NSW, Hunt and Hunt The Frank Whiddon Masonic Homes
2000 GPO BOX 4132, SYDNEY, NSW, 2001 Locked Bag 14, MINTO DC, NSW, 2566
Tel: 02 9333 3383 Tel: 02 9391 3163 Tel: 02 9827 6634
Clayton Utz Jones Lang LaSalle NSW Third - Age Living Investment Managment
Level 8/40 Marcus Clarke Street, CANBERRA, PO Box 2500 Queen Victoria Building, Level 40 Chiffley Tower, 2 Chiffley Square,
ACT, 2600 SYDNEY, NSW, 1230 SYDNEY, NSW, 2000
Tel: 02 6279 4000 Tel: 02 9220 8423 Tel: 02 8005 5785
26
Meli studio has been invloved in many
award winning developments, Waterbrook
Greenwich is one of our latest projects.
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thomsonadsett.com
architecture | urban design | interiors
1300 304 290
RVA Yearbook 2009
Industry
Corporate Partners
28
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RVA Yearbook 2009
Industry
Corporate Partners
Coomes Consulting Group Spectrum Analysis Australia Pty Ltd GV Lawyers Pty Ltd
2/24 Albert Road, SOUTH MELBOURNE, VIC, 101 Camberwell Road, EAST HAWTHORN, Level 5 / 16 Irwin Street, PERTH, WA, 6000
3205 VIC, 3123 Tel: 08 9325 6188
Tel: 03 9993 7888 Tel: 03 9882 6488 Higgins Coatings Pty Ltd
Erigo M.A.C Urban Maintenance Systems Unit 1 / 35 Guthrie Street, OSBORNE PARK,
PO BOX 2158, HAWTHORN, VIC, 3122 Level 1 /41 Miles Street, MULGRAVE, VIC, WA, 6017
Tel: 03 9818 2899 3170 Tel: 08 9263 1000
Herbert Geer Lawyers Tel: 03 9560 5811 Hotmix
Level 21/385 Bourke Street, MELBOURNE, VIC, Urban Neighbourhoods Box 446, Northbridge,WA. 6865
3000 PO Box 2039 Research Delivery Centre, Tel: 08 9227 5957
Tel: 03 9641 8615 RESEARCH, VIC, 3095 J H Wilberforce
Incolink Tel: 0409 070 997 33 - 43 Clune Street, BAYSWATER, WA, 6053
1 Pelham Street, CARLTON, VIC, 3053 Vicpole Pty Ltd Tel: 08 9340 6222
Tel: 03 9639 3000 31-35 Barry Street, BAYSWATER, VIC, 3153 Mal Atwell Indoor Leisure Group
Lewis Holdway Lawyers Tel: 03 8761 2703 34 Gympie Way, WILLETTON, WA, 6155
PO Box 138 Collins St West, MELBOURNE, Yellowstone Landscaping Tel: 08 9354 9150
VIC, 8007 PO Box 5047, STUDFIELD, VIC, 3152 Mickey Curran Painting Pty Ltd
Tel: 03 9629 9629 Tel: 0411 090 820 Unit 4 / 25 Tulloch Way, CANING VALE, WA,
Logreen 6155
7 Gilbert Road, WEST PRESTON, VIC, 3072
Tel: 1300 361 658
WA REGIONAL Tel: 08 9456 5710
30
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^P[OWYVMLZZPVUHSZ\WWSPLYZ Only RVA Associate Members are listed in the
HUKZLY]PJLWYV]PKLYZ^OV directory. 2,000 copies are printed and mailed.
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As an RVA Associate >LI
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will be listed in the RVA The RVA has joined THE
Services Directory at no SOURCE Village & Care Directory,
charge. and [OLZV\YJL[VKH`JVTH\
website with an extended offer.
From just $400 you can June -\SS^LIWHNL^P[OSPURZ
Heinrich
also promote your business The Quiet
Achiever
(30,000 visits per month)
to all 1,850 villages across LEGAL - DIGITAL TV - MARKETING - PEOPLE - DIRECTORY (thesourcetoday.com.au)
Australia with a logo listing (X\HSP[`THNHaPULKPYLJ[VY`!
in our Services Directory. village & care sectors
Your business will be 4HPSLK[V_[PTLZH`LHY
identified by your region 19,500 circulation
of operation and your Logo Listing + 50 words ......... $572
Quarter Page ...........................$2,200
;HRLHK]HU[HNLVMV\YNYLH[[^VMVYVULVMMLY0M`V\[HRLWHY[PU[OPZ`LHY»Z
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9=(>LI
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P: 1300 731 716 Full web listing with links (4,500 visits per month)
W: www.blueforce.com.au
A4 print directory mailed to 1,850 villages
Emergency Call Services
Blue Force specialises in the design,
build and ongoing servicing of emer- )HZL3PZ[PUN ...............................................................................................................................$Free
gency call and electronic security services
for the aged care and retirement villages Logo Listing + 50 words .......................................................................................... $400 inc gst
sectors. Our in-house ASIAL accredited Quarter Page ............................................................................................................... $550 inc gst
monitoring and support centre is one of
Australia’s largest and delivers specialist
assisted care, independent living, high THE SOURCE
care and dementia coverage.
Full web listing with links (30,000 visits per month)
A4 annual print directory mailed to 3,500 village &
Logo Listing care decision makers x 3 times a year - Logo Listing......................................$572 inc gst
Actual Size Quarter Page ............................................................................................................ $2,200 inc gst
Mercy Place – Colac Mercy Place Rice Village Mercy Place Apartments – Parkville
83-99 Queen Street 2-26 Marshalltown Road 50-62 Cade Way
COLAC VIC 3250 MARSHALL VIC 3216 PARKVILLE VIC 3052
Mercy Health, building on the foundation and values of the Sisters of Mercy offer Retirement Living opportunities across
3 Victorian Sites; bringing to life a vibrant village feel offering a sense of safety, security and lifestyle. Our villages are
co-located with residential aged care facilities aiming to offer residents the concept of a continuing care community.
Mercy Place – Parkville is a new architecturally designed village offering a range of accommodation options and services in a
community setting, including:
• Mercy Place Apartments, spacious, high quality, 1, 2 and 3 bedroom retirement apartments
• A community hub including activity spaces, café, retail shops and allied health services
For further information contact:
Ms Helen Hunter - Retirement Living Housing Manager – Mercy Health
50-62 Cade Way, PARKVILLE VIC 3052
Tel: 03 9261 2008 Fax: 03 5241 9007 Email: hhunter@mercy.com.au Web: www.mercy health.com.au
RVA National Website - Members Web Packge
2009/2010
www.rva.com.au
Promote your product or service to retirement village operators
and residents through:
Take advantage of our members only special rate web package with
the additional benefits of profiling and listing in the RVA supplier
handbook to be distributed to over 2000 industry representatives.
WEB STATISTICS
To take advantage of one of these excellent value for money packages, please contact your RVA
Regional Manager or complete the request form below and return with your membership
application.
PAYMENT
Card No: ……….. ………….. ………… ………….. Expiry ………………. Security No: …. …. ….
Name on Card:………………………………………………………………………..…………………………….
Company:…………………………………………………………………………………………………………...
Address 1……………………………………………………………………………………………………………
Industry
37
RVA Manager of
the Year Award
2009
RVA Yearbook 2009
People
N
ow in its sixth year, the RVA Manager every year and this year the RVA received 13
of the Year Award (MOTY) has attracted more applications than in 2008. The increase in
a record number of applications since interest is attributed to the work carried out by
the award was first established in 2004. RVA regional managers promoting the awards
Sponsored by Programmed Property Services, and the incentives offered by sponsors.
the award recognises outstanding village The awards have always been a great way to
managers who have been nominated by their recognise the good work carried out by village
residents, staff or owner operator. managers, but there were also some great prizes
RVA CEO Andrew Giles said the on offer this year.
competition for the Manager of the Year Award Regional winners receive some strong
was very strong and making a decision was promotions for their village and the national
difficult for judges across Australia. winner receives a fantastic gold class trip on
“In each state judging came down to the The Ghan railway between Darwin and
wire and I think that has a lot to do with what Adelaide.
40
RVA Yearbook 2009
People
Gareth Norman
Salford Living
The Grange Retirement Estate, Salford Retirement Estate & Unity Retirement Village
How did you become involved in the What do you find most rewarding about the
retirement village industry? job?
Prior to emigrating with my family in 2005, I There is not one thing that is more rewarding
could see that retirement villages were a major than the next or the last, but to see the residents
growth industry. I understood the dynamics of satisfied is reward in itself.
the ageing population and I thought I knew
Have the industry and your job changed over
what the aged population would want and
the years? If so how?
would expect during their retirement years and
I can’t say that I’ve been in the industry long
when I saw an opening, I jumped at the chance
enough to make a substantive comment on
to join the industry.
industry changes, but what I can comment on is
In what ways do you help build the community our village/s have changed, our residents have
at your village/s? changed and our own expectations have
My three villages are all different, even though changed… all for the better.
two of them are located within the same
What do you find most exciting about the
suburb. To build a community in the village/s it
industry?
was imperative that we understood our own
No two days are the same. As the manager, you
residents, their likes and dislikes. During our
are everything to everyone; you wear a
getting to know you sessions, it was evident that
multitude of hats and sometimes all at the same
a strong community already existed. Our team’s
time; you’re an accountant, architect, engineer,
drive and enthusiasm has resulted in bringing
nurse, mentor and counsellor just to name a
our community even closer.
few. This all adds to the excitement of the job.
What have you learned from the residents at
your village?
Every day you learn something new and one
thing is for sure, our residents are happy to
teach you!
41
RVA Yearbook 2009
People
Andrea Riviere
BLUE HILLS AND DURHAM GREEN VILLAGE
How did you become involved in the Have the industry and your job changed over
retirement village industry? the years? If so how?
I was working in the building industry and The management style of retirement villages has
offered assistance to my neighbour Maurice changed. We now work much closer with
Tulich to have his first villa ready for residents.
occupation. Successful managers include their residents
It was a great opportunity to work in the in the process.
building of the village and also to forge Apart from the residents committee, there
relationships with our new residents. are now finance committees, social
Village maintenance is a lot easier when committees, bar committees, house committees
you have actually worked on the construction and sales support.
and know a house from the inside out! Resident care is coming to the fore in
retirement villages with some operators offering
In what ways do you help build the community
not only independent living, but community
at your village/s?
aged care packages and co-located residential
Blue Hills Village is unique in its strong sense of
aged care.
community among our residents. From the
beginning, I have had the opportunity to What do you find most exciting about the
participate in all facets of village life from social industry?
activities, teaching art and craft, bus trips, The evolution of resident care options in
resident birthdays and celebrations. We have retirement villages.
been in it together. There has never been a The current RVA Accreditation scheme has
‘them’ and ‘us’ attitude. raised the bar and improved the reputation of
Our families have interacted with the retirement villages. This, along with the
residents and their families throughout the initiative to work more closely with the RVRA
years. (Retirement Villages Resident Association) and
I have followed Maurice’s vision where an increased transparency by management is
retirement village management is based on seeing a move away from the ‘crooked
family values and upholding this has built a operator’ attitude and improved relations in
‘community’ not just a place to live. villages.
The new building designs of retirement
What have you learned from the residents at
village residences and village community
your village?
facilities.
Life is short, live every day to the fullest!
Any other points you’d like to make?
What do you find most rewarding about the
We found the accreditation process extremely
job?
beneficial and would encourage retirement
Knowing that I can make a difference to
village operators and managers to move toward
someone’s life.
accreditation under the RVA scheme.
It is amazing to see new residents move in
It is a great way of showing your residents
with nerves and trepidation, then within a
and prospective residents that you are meeting
month they are excited about the social
high standards in the operation of your village.
activities, swept up in the fun, being included
in our community and wishing they had made
the move years ago.
42
Bectonn creates and manages grea
great
at places to live. For three dedecades
ecades we have been desig
designing,
ning,
buildin
ng and managing places that
building thaat feel like home the moment
momeent you walk in the door.
doorr.
Throughout
Througghout Australia, Becton hass created places where the stunning design, architecture
architectu ure
and cra
craftsmanship
aftsmanship are only a small
smaall part of the total offer.
offerr. Places soft
Pllaces that hum with the soft
buzz off people enjoying the good life. Places where they cann enjoy an over 55’s55’s lifestyl
le,
lifestyle,
enricheed by the companionship of
enriched o like minded people. Places
Placees where people are free to
exploree new interests and adventures
adventtures if and how they chose.
chosee.
Classic Re
Residences,
sidences, Brighton VIC t 03
3 9599 2300
Classic Resid
Residences
dences Brighton has a strong sesense
nse of community and fun with lifestyle,
freedom andd flexibility afforded by a strong sense of security
security.. Classic Reside
Residences
ences
hhas
as sserviced
erviced apartments
apartments starting
starting ffrom
rom aapprox
pprox $235,000 aand
$235,000 nd iindependent
ndependent aapartments
partments
m $320,000.
starting from
Menzies, Malvern
M VIC t 03 9500 9297
929
97
Menzies is aan exclusive residential development
developm ment for those seeking independ
independence,
dence,
security andd a truly luxurious lifestyle. Every
Everything
ything has been thoughtfully de
designed
signed
with spacious,
i us, creative
ith spaciou ti areas for
f a refined
fi d lelevel
levell off living.
li i Menzies i l d lluxury
M i includes uxury
5 star accommmodations and facilities.
accommodations
Waverley
Waverley Country Club,
Club, Rowville VIC
C t 03 9755 8542
As soon as yyou drive through the gates you experience a thoughtfully plann
planned
ned
retirement eenvironment designed for peoplee who want to live active and fu ull lives.
full
Resident’ss enjoy
Resident’ enjoy the security of a gated com
community
mmunity and a commitment to sservice the
whole time they live here. 2 and 3 bedroom m Villas start from approx $365,0
000.
$365,000.
Dee Why Gardens,
G Dee Why NSW t 11800
800 1155
55 1171
71
Imagine a pplace
Imagine lace of
of iinviting
nviting bbeauty,
eauty, w where
here luscious
luscious green
green llawns,
awns, fl flowering
owering ggardens
ardens
t t l ttrees surroundd you. A place
andd stately l whe where
here the
th living
li i isi always
l easy,, whe
easy where
here home
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The Woniora,
Wonioora, Wahroonga
Wahroonga NSW t 002
2 9489 4924
Apartments for distinguished retirement living.
living. Stylish design and beautiful surroundings
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know arouund the clock. Starting from appox
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Breezes Mackay
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marina.
apartments starting from approx $235,000 and villas starting from approx $345,000.
Woodstock
Woodstocck West,
West, Bunbury WA
WA t 08 9791
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www.becton.com.au
www.becto
on.com.au
RVA Yearbook 2009
People
Peter Snell
AVEO LINDSAY GARDENS
How did you become involved in the and each individual has their own life budgeting programs giving us access to
retirement village industry? story to tell, which in itself is interesting. highly professional presentations. The
I was a paramedic for 17 years with the It is refreshing to see new residents workload and demands on the manager
Queensland Ambulance Service (QAS) excited when entering a new phase in have increased substantially due to the
and it was during my time as a working their life and to join into the activities at growth and changes within the industry.
member of the management team I the village. I have observed that many
What do you find most exciting about
became exposed to retirement villages have new, fresh and varied ideas which
the industry?
and the independent living lifestyles. The bring the resident community together
The media reminds us that we have an
aged care industry was entering a new and others work tirelessly in the support
aging population and it is gratifying to be
era and I was keen to become involved and care they render to their newly
part of this thriving industry. I can see an
and be an integral member of the formed friendships. My residents have
era of great opportunity for residents and
management team within the village taught me the finer points of positive
management in the independent living
lifestyle. negotiation and problem solving and I
lifestyle in retirement villages. The
must say constructive outcomes are very
In what ways do you help build the resident community is excellent for
rewarding.
community at your village? seniors to embrace as it offers friendship
I thrive on challenges and I strive to What do you find most rewarding about and support while still living and
endorse a strong, positive leadership the job? retaining full independence. The market
team. I promote high work ethics and I came from a highly professional competition makes the industry exciting
work diligently to ensure resident needs working environment where career and challenging with the standards in
are met and services provided to the development was encouraged and service delivery and saleable products
residents are approved and managed by keeping currency in training programs currently at an all time high.
appropriate qualified agencies. With vital. It was on this basis when I became
open communication and availability manager of my village that I sourced
being a critical foundation to the funding to gain suitable training
building of a happy and secure living endorsed by the government to
environment for residents, I aim to adequately train and accredit my staff.
support my residents and their family This training not only was good
members positively. As a village manager grounding for my staff but gave my
it is a privilege to promote, protect and residents confidence in knowing my
preserve the independent living lifestyle team are all qualified and trained in the
for residents at my village and I am services provided. It has been rewarding
honoured to have in some way to me as manager to know that my
contributed to their quality of life and meticulousness has ensured all staff
care whilst residing in the village members at the village are accredited
environment. and fully trained.
What have you learnt from the residents Have the industry and the job changed
at your village? over the years and if so, how?
Residents have taught me open- Since I became a village manager, I have
mindedness and I am proud to welcome witnessed first hand the rampant growth
new residents to the village lifestyle, and and advancement with this industry.
for many it is the first time they have Competition of the saleable product has
lived outside their family home. I have grown considerably along with many
learnt that approach is a major player in changes to government legislation, local
the settling of a resident’s new life. policies and procedures. Technology and
Residents have a wealth of knowledge programs available have enhanced
44
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A detailed understanding of the industry and the regulatory framework within which
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RVA Yearbook 2009
People
Sue Loeliger
CLASSIC RESIDENCES BRIGHTON, WAVERLEY COUNTRY CLUB AND
PREVIOUSLY MENZIES MALVERN*
How did you become involved in the have learnt how to pick up lost stitches in my
retirement village industry? knitting and how to (try to) keep my lawn bowl
I had always lived with three generations in our from straying into the next lane.
home. First, with my grandmother living with
What do you find most rewarding about the
my mum and dad, brother and I, and later in
job?
our own home with my sons having my
There is not a day when you go to work when
husband’s mother living with us. Applying for a
you can be sure of what it is you will be doing.
position with a new evolving retirement village
Work is never boring. One day you may be
felt just right. Having a bit of a technical bent I
down on your knees in a communications
studied computer science but loved being with
cabinet trying to work out why at 4.55pm on a
the older generation and working with Becton
Friday night the residents’ internet is not
to open its first village was the perfect
working and on another day you can be sharing
combination of new technologies and older
in a great grandchild’s birthday party. Another
people.
day you will be working on the business plan
In what ways do you help build the community for the next year and the next arranging a bus
at your village/s? trip to a winery in the Yarra valley. Where else
As I have been at the villages since their can you get such diversity?
conception I have had the opportunity to spend
Have the industry and your job changed over
the time to find out the needs and desires of the
the years? If so how?
residents who were moving in. As the villages
In line with the economy I feel that I need to
increased in size, introducing activities and
strive harder than ever to ensure that every cent
functions that suited the type of resident who
we spend on behalf of the residents and of the
moved in ensured that the residents were
owner company are spent wisely. You must
comfortable in mixing with the community.
research every option when making budget
Making yourself available to everyone is the
decisions while ensuring that quality is not
best way to ensure that you understand the
compromised. Residents who are moving into
mood of the village and work towards building
our villages are looking for greater value for
the style of community they desire.
money in their every day lives and I feel that
What have you learned from the residents at this has made the job more challenging than
your village? ever.
Over the years I have learnt so much about I feel very lucky to work in a position where
village life. From little things about the way a I can enjoy the company of so many wonderful
unit should be built – lower peep holes in people, both residents and staff, and hopefully
doors, higher toilet seats, no steps at front contribute to making their lives in our villages a
doors, kitchen shelves that you can get to with fulfilling place to work and live.
reaching up too high or bending too low – to
*Sue won Manager of the Year Award when she
the optimal temperature of the swimming pool
was the village manager at Waverley Country
so that muscles relax and allow a newly
Club.
replaced hip to be exercised. I have learnt
about the importance of community spirit as
you grow older and face the challenges of an
ageing body or mind. I have learnt a lot about
the lives that have been different to my own
and in some cases harder and more challenging
and in others more adventurous and exciting. I
46
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People
Glenis Trumbich
MARGARET HUBERY VILLAGE AND THOMAS PERROTT VILLAGE WA
How did you become involved in the for outings and entertainment. SCC have something that we all need. I hope that I
retirement village industry? initiated an Inter-Site Ladies or Mens Day am able to return some of that to them.
My involvement in the retirement village where our villages can be the host for a
Have the industry and your job changed
industry was quite accidental. I had left my days socialising – these days are proving to
over the years? If so how?
previous employment as a flight attendant be very popular and the host village gets to
I feel that the industry has changed
with Ansett WA to have my second child show off their village and facilities. We
tremendously since my job commenced.
and when she was old enough to start have groups of ladies who provide hand-
Back ten years ago there were only
kindergarten I wished to take the made knitted blankets for the St Vincent de
minimal guidelines and support services.
opportunity to return to the workforce on a Paul organisation to help the needy and
These days thanks largely to organisations
part time basis. My mother referred me to monies raised from their Ladies Day also
such as the RVA there is ongoing education
Southern Cross Care (SCC) where she was goes to charity. I encourage them to
and support. Life is much more fast-paced.
employed at one of their low care facilities, participate in events provided by Joseph
Residents are looking for information and
Joseph Cooke Hostel. I went for an Cooke House and have interaction
support. We are able to provide in-home
interview and took up a position as a carer between village residents and hostel
care and community support, which are all
on a part time basis. This grew to where I residents. All these things go towards a
invaluable tools. Accreditation has been a
was offered an administrative position and happy village environment where residents
wonderful innovation over recent years
eventually to what was a ‘newly created’ have the opportunity to contribute and
and I am very proud of the fact that as an
position as co-ordinator for Thomas Perrott participate in various aspects of village life.
industry we have taken onboard these
Village.
What have you learned from the residents regulations and guidelines on a voluntary
I feel that one of the most important
at your village? basis.
aspects of my work is to work towards
The residents have taught me that I think this is an exciting industry to be
enhancing the community spirit of the
retirement is an exciting time, not a step involved in. The area of retirement and
village and I am confident that this is a
towards the end of life but a new adventure aged care is a fast growing area. Services
happy community environment. I work
into a different part of life’s journey, that I are ever expanding and demand and
towards helping to achieve this through
can look forward with great anticipation to expectation have changed tremendously
constant and open communication with all
the time when I too can retire. They have over the years. I feel that the industry now
residents and working as closely as
also shown me that there are many presents itself as a life choice. The public
possible with the residents’ committee with
avenues of support in the community now embrace retirement and ageing in a
whom I have a great rapport. I organise
where we can all do our bit on a voluntary much more positive light than ever before
monthly talks for residents with guest
basis to help someone else. and I expect that this will continue.
speakers on a variety of topics which I
endeavour to make interesting, informative, What do you find most rewarding about What do you find most exciting about the
educational and fun. We always join the job? industry?
together for morning tea at these events The people are the most rewarding aspect I feel privileged to be associated with this
which I provide and in which I participate. of my job. I do also have great satisfaction industry and in particular the MOTY
I provide a monthly newsletter in which from the property side of things, in awards. Since receiving my award I have
residents can have input with items of organising building and renovation works been surprised at the feeling of credibility
interest to themselves and others and it has etc, but definitely it is the people who keep that it has given me. It has made me feel
a ‘for sale’ or ‘giveaway’ section where me working. I have recently experienced even more valued as a worker within my
they can sell or give away goods. There are the sad loss of my father and have been own organisation and within the industry
groups for exercises to music and evening warmed and comforted by the love and generally. I would be happy to encourage
bingo which are fun. Southern Cross Care support of my residents. They have become anyone within the retirement village
has provided a Nintendo Wii which has part of my extended family over the past manager group to go forward and allow
been a great source of entertainment and ten years and are a huge part of my life. them to be nominated for this award. It has
learning. I encourage bus outings and They constantly express genuine concern been most rewarding and enjoyable.
constantly supply the committee with ideas and interest in me as a person and this is
49
Accessing
your super.
You can withdraw all or part of your superannuation once you You don’t have to cash out your super. Instead, you can convert it
have reached your preservation age* (55 - 60 years depending on when to an account-based pension (otherwise known as an allocated pension),
you were born) and have permanently retired. However, it is not which can be very tax effective. Performance returns are tax free, and you
compulsory to withdraw your super when you retire, and if you are pay no tax on any income or withdrawals once you reach age 60**.
under 60 it may be beneficial to leave it where it is. This is because Account-based pensions are also very tax effective for people aged 55
benefits paid from super, either lump sums or pensions, are tax-free and under 60, as they will qualify for a 15% tax rebate on any pension
once you reach 60 years of age**. income received (conditions apply for those under age 55)**.
If you make a withdrawal prior to age 60, you may have to pay Sam Wall, Executive Manager,
16.5% tax on some of it. However, you are allowed a tax-free threshold Technical Services, Colonial First State
Important information: *Different retirement conditions apply from age 60. **Does not apply to untaxed super schemes such as public sector super schemes. This information is
general information and advice only, current as at 26 June 2009. It does not take into account any person’s individual objectives, financial situation or needs. Colonial First State
Investments Limited ABN 98 002 348 352 AFSL 232468 is the issuer of superannuation and investment products. Product Disclosure Statements (PDS) for these products are available
from Colonial First State. Investors should consider whether the information provided is appropriate for them and the relevant PDS and consider talking to a financial adviser before
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Meet with
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Age matters.
Commercial. Legal. Political. Regulatory.
Aged care and retirement village matters.
The response to Australia’s ageing Gadens Lawyers can assist you with understanding and participating in this dialogue.
population is not merely a property We have developed a highly experienced aged care and retirement village team who
play to entice the sophisticated baby deal with the everyday issues that those in the aged care and retirement village sector
boomer generation to a new abode. need to consider.
Fundamentally, it is a dialogue between
governments and providers on how to We have established strong contacts in this sector, having advised some of the pioneers
deal with one of the great demographic LQERWKWKHQRWIRUSUR¿WDQGSULYDWHVHFWRU2SHUDWRUVDQGSURYLGHUVLQWKHQXUVLQJKRPH
shifts in human history. and retirement village industries recognise members of our aged care and retirement
village group as experts. We work closely with major industry associations to provide
ongoing advice and education to add to this continuing discussion.
People
New legislation in NSW and the ACT, record numbers for the Urban Development Institute of Australia and will work
sponsorship and delegates at the Regional Conference along with them over the upcoming year to establish a cooperative
with the loss of a true gentleman and pioneer of the retirement and coordinated approach between the UDIA NSW Seniors
village industry in Tony Baldwin headlined a year which saw Living Committee and the RVA Planning and Development
professionalism grow in the RVA as it consolidated its position Committee. We will do this through collaboration on
as the peak industry body. submissions and advocacy pertaining to the regulative and
New events such as the MacroPlan/Gadens seminar, CBRE legislative framework affecting seniors living and retirement
Breakfast, National Board Cocktail Party and Blake Dawson village development in NSW and on other matters as they arise
Industry Luncheon showcased a new look and new standard that encourage development in seniors living and retirement
events program from the RVA. villages.
The last 12 months have seen consolidation and growth in Through the negotiations of the Retirement Villages
NSW and the ACT with the RVA strengthening its position as Amendment Act Bill we have been able to commence and
the peak industry body for retirement villages. We were able to develop a relationship with the NSW Residents Association
demonstrate to government the need for a viable retirement which continues to strengthen with every meeting. The strength
village industry in NSW which helped achieve significant of this relationship I am sure is set to be tested in the upcoming
amendments to the Retirement Villages Amendment Act Bill. weeks and months as we push forward with negotiations in
We have forged strong alliances with organisations such as relation to the Regulations accompanying the Act.
53
RVA Yearbook 2009
People
Membership and Accreditation Accreditation numbers have also increased in the last 12
Our Membership at 30 June stood at 126 Village Members, 45 months with the continuation of half day seminars to inform
Regional Associates and 7 Industry Members. The next 12 operators how to prepare for accreditation. 31 villages became
months will see a significant push into the Not-for-Profit sector accredited in 2008/09 which increases the total number of
as we aim to have in excess of 150 village members in the accredited villages in the region to 59. We now have 47% of
region. member villages in NSW/ACT accredited. This course will
With the launch of the Industry Supplier Directory we are continue next year in order for villages to take advantage of
set to see an increase in Associate Membership which will in this extremely beneficial marketing and management tool and
turn lower the burden and reliance on Village Membership. keep a high level of service and credibility throughout the
Associate members (eg architects, lawyers, builders, industry.
electricians, painters etc) will be featured in this directory
Conferences/Seminars/Managers Meetings
which will also be a great ready reference for member villages
Crowne Plaza Hunter Valley was descended upon for a second
and an added benefit for Associate Members.
year running for this year’s Bank West NSW/ACT Regional
54
RVA Yearbook 2009
People
Conference. A welcome cocktail party on the Thursday evening Macquarie, Central Coast, Sydney, Berry, Canberra and Wagga
gave everybody an opportunity to unwind and catch up in a Wagga, with over 90 different managers attending throughout
relaxed atmosphere. the year. This will extend in the next 12 months out to Tweed
The Conference kicked off on Friday with the largest Heads and Albury as we establish cross border meetings with
number of delegates ever in attendance for a NSW/ACT Victoria and Queensland to help build the network of
Regional Conference. Over 140 people were brought up to managers in those regions. We thank Programmed Property
date with the GFC and its impact on the industry, effective Services for their continued support and sponsorship in making
management practices, how to work together with residents, these events free for managers.
key sales and marketing tips and how to effectively deal with The Managers Meetings have been a great way to stay up to
the media. The day was brought to a close with a rollercoaster date with relevant topics and a tremendous opportunity for
ride of emotion as John Anderson, the founder of Contiki managers to network. A huge thank you goes to all member
Holidays talked about turning passion into business. participants and Associate Members who contribute to the
The Professional Development Program has seen our meetings. Special mention must go to Arthur Koumoukelis and
Managers Forums go across NSW and ACT including Port his team from Gadens and Guy Vinden and his staff from
55
Seniors Housing Management, Marketing and Valuation
People
57
Your Care | Our Passion
People
Our relationship with the Department of Planning has best of luck to all of this year’s nominees and look forward to
strengthened following Sam Haddad’s speech at the State receiving even more nominations in 2010.
Conference. We will be working together with the Department
NSW Regional Committee
of Planning in relation to items including Section 94
Our thanks go to all members on the committee for the time
Contributions, Affordable Housing in Vertical Villages and
and effort that they contribute to the RVA. Their input on top of
Leasehold Titles in villages.
their own busy lives in the industry is very much appreciated
We will also be working with the Government to ensure
and a fundamental reason why the RVA continues to grow,
that Retirement Villages can be an integral part of meeting the
develop and strengthen.
accommodation and social needs of our ageing population.
NSW/ACT has faced many challenges over the past 12
The Retirement Villages Act was passed on 4 December
months and with the assistance of the committee, the RVA in
2008. The amendments reflected a lot of hard work achieved
NSW/ACT has strengthened its position as the peak industry
by the RVA in ensuring a viable industry in NSW. The RVA has
body for retirement villages.
been promoting and will continue to promote a viable industry
Our NSW/ACT Regional Manager, Mark Eagleston, is
throughout the negotiation process of the Regulations when
greatly appreciated by all members and is to be complimented
they are released.*
for his diligence and effort in lifting the profile of the RVA
Manager of the Year throughout NSW and the ACT. Mark’s ability to regularly liaise
Every year the decision of the judging panel to determine the with government stands the region in good stead for the future.
NSW/ACT Manager of the Year gets harder and harder, and this We thank Mark and his assistant Alison Parry for their
year was no exception. continued hard work throughout the year.
Andrea Riviere from Blue Hills Village and Durham Green The NSW/ACT Regional Committee along with Mark and
Village was the 2009 NSW/ACT Tony Baldwin Manager of the Alison wish you all a Merry Christmas and a safe and
Year. Andrea is responsible for the management of two of the prosperous 2010.
Tullich Family Communities villages and after 10 years in the
industry is an extremely worthy recipient of the award. Kevin Ryan
Congratulations to Andrea and all of this year’s nominees. A Chairman, NSW/ACT Regional Committee
record 19 applications were received in 2009 showing the
strength of RVA managers. *At the time of writing the NSW Regulations were yet to be
We wish Andrea the best of luck in the National Award and released.
59
RVA Yearbook 2009
People
Resident Referrals
The QLD office has received a steady flow of phone calls and
requests for information on listings of retirement villages in
QLD. Approximately 350 packs have been sent to prospective
residents looking at a range of different Retirement Village
options in QLD. These packs consist of QLD Village Member
lists including relevant contact details as well as a booklet
entitled ‘Your Questions Answered’ on everything you need to
know about investing in a Retirement Village.
This area of our business provides the retiree market with a
service on any questions they may have where appropriate and
2008/2009 has been a year of growth and establishing a provides leads to our members of potential new residents.
presence in the QLD Region with August 2008 seeing the RVA QLD has also established a good working relationship
establishment of the QLD office in Brisbane. with the Residents Association in QLD – ‘ARQRV’. Through
In March 2009 our new QLD Regional Manager Genell establishing this relationship RVA has included representatives
Kokokiris joined the RVA to lead the QLD Region. Genell’s of the Residents Association in our Regional conference. The
background has been predominantly in commercial business RVA also assists in other ways to support the work they do on
with 11 years at IBM in Solution Sales, Marketing behalf of all QLD residents.
Communications and Operations. We also have been actively involved with community
Following in this report is an outline of the achievements groups like the Probus Group as a guest speaker at their
and successes the RVA QLD office has had in the last financial meetings.
year.
Government Relationships
Membership The RVA QLD committee has built good relationships with key
RVA QLD membership has been strong in its first year since the government players. This includes the following:
introduction of the new RVA QLD office. The table below gives • Office of Fair Trading
you a view of the growth over the last year. Overall the RVA • The Minister for Fair Trading, The Hon. Peter Lawlor, MP
has had a healthy increase in membership of 12%. • Deputy Brisbane City Council Mayor – Cr. Graham Quirk
Membership as at Membership as at We have also been actively involved, having a representative
Member category Increase %
30 June 2008 30 June 2009 on the Brisbane City Council’s Taskforce into Retirement and
Village 1 46 +97% Aged Care.
Associate 0 11 +100%
Professional Development Activities
Industry 0 1 +100% In 2009 we rolled out a series of successful professional
TOTAL 1 58 +98% development forums which has provided valuable information
and a great vehicle for QLD members and non members to
Village Accreditation network across a range of issues surrounding the industry.
Accreditation in QLD for villages has previously been done These are as follows:
60
RVA Yearbook 2009
People
• December 2008 – Members Christmas Party, sponsored by This sales seminar was an interactive and intensive sales
KPMG class over two days with a total of 12 delegates.
• 11 March 2009 – National MacroPlan Forum, Retirement
The Future
Villages…The New Investment Frontier. This was RVA
RVA QLD has established itself as a strong body in the
QLD’s first forum and attracted 55 delegates with 60%
Retirement market in the past 6 months.
being non-members.
We believe the QLD region has enormous potential to
• 30 July 2009 – RVA QLD Inaugural Regional Conference.
become the retirement destination of Australia and look
This was QLD’s first Regional Conference which was a
forward to working on behalf of its members to be the
great success and in many ways put the RVA QLD office on
collective voice and leading body for the Retirement Village
the map as the leading voice in Retirement in the QLD
industry.
market. We had 115 delegates with 13 sponsors. The
I would also like to take this opportunity to thank the QLD
program was a very full day of a range of speakers with the
Regional Committee for their time and support in the last 12
theme of the conference being, Retirement Villages in the
months. The QLD Committee members are as follows:
2009 Economy – Crisis or Opportunity? The conference
• Andrew Macintosh, Aveo
also incorporated the Manager of the Year Award with the
• Javan Hollister, Keperra Sanctuary
2009 QLD Winner being – Peter Snell of Aveo, Lindsay
• Russ Dunstan, Living Choice Kawana Island
Gardens.
• Marco De Pasquale, Oak Tree Projects
• 8 September 2009 – RVA Networking Breakfast proudly
• Michael Winter, Allora Gardens
sponsored by CB Richard Ellis. Capitalising on a rebound in
• Justin Harrison, Villages at Yeronga
the retirement market. This event was a breakfast seminar
• Kaye Smyth, Live Life Villages
with an interactive panel sponsored by CB Richard Ellis
• Robin Lyons, Minter Ellison
with discussions around options and property opportunities
• David Netherton, Minter Ellison
in the Retirement Market, followed by banking and
In addition I would also like to give my sincere thanks on
development perspectives. We had 65 delegates attend this
behalf of the RVA QLD team to RVA’s National Partners for all
seminar.
their support and I look forward to continuing our working
• 10-11 September 2009 – Bloomers Sales Training – ‘Selling
relationship.
Retirement Living’. The RVA QLD office began the National
sales training program delivered by Bloomers which is a Michael Fallon
retirement living sales course directed at village sales staff. Chairman, RVA QLD Committee
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You are invited to visit our website, to contact us for further information or to call in and see this amazing concept of
retirement for yourself.
• www.grandepacific.com.au • info@grandepacific.com.au • Free call: 1800 450 433 • Tel: 5591 2111 • Fax: 5591 2199 •
70 Marine Parade, Southport, Gold Coast QLD 4215
61
RVA Yearbook 2009
People
Regional Office SA/NT blend will take us into the future. Let’s make sure we are at the
In the past 12 months we have seen the strong commitment of forefront moving forward.
our Regional Committee Members and we thank them for their The stronger our numbers, the louder our voices, the more
continuing involvement and support of the industry. we will be heard!
The Committee meets on a monthly basis with members
Membership
participating in various national portfolios which identify, plan
The provision of increased benefits and services has added
and aid the progress of strategies devised within the RVA
value to RVA Membership and with that focus we have been
growth and development focus, both on a regional and
rewarded with a steady increase in our members.
national level.
We will continue to grow and develop the services
We believe the presence of a full-time person as state
provided by the RVA and there are exciting developments in
manager has provided a definite benefit to our Members as
the pipeline, some are already underway and some will roll out
well as allowing the RVA to develop stronger and highly
in the near future.
professional Development and Training sessions. Sandra Carle
Now is the time to become a member of your peak industry
has done a sterling job in her first year in this role, and we look
body!
forward to an enhanced member services relationship in the
coming year. It’s pleasing to record that we have also achieved Professional Development, Presentations & Regional
our aim of providing a broader representation, support and Conference
information base to our existing members. October ’08 – ‘Are You Fire Safe?’ & ‘Risk Management/Cover
The SA/NT region welcomes and encourages involvement Limitations’ were the session topics presented by the
of its valued members with their committee and attendance at Community Education section of South Australian Metropolitan
members meetings to ensure that their voices are contributing Fire Service and JLT-VillageWISE. This PD Forum was held at
to developing strategies and encouraging growth and Kalyra Heights Village and we thank them for their hospitality.
development in our industry. February ‘09 – ‘The Art of Selling Retirement Living’, an
We are a young and vibrant industry and we need to meld introductory presentation by Bloomers to their sales
the knowledge and expertise of our ‘legends’ with the programme was held for industry colleagues. Attendees, 35 in
innovative and lateral thinking of our newer members. This all, came from 19 organisations to learn more about this
62
RVA Yearbook 2009
People
integral subject during this economic period. for our members and industry colleagues. In addition, they
April ‘09 – ‘Maximising Sales Interest through Financial provide a great platform for the sharing of ideas and
Strategies’ presented by McInerney Barratt Financial Solutions. knowledge and we will develop them further in conjunction
This topic provided insights on the effect of moving into a with the national Professional Development calendar.
retirement village and the impact of Centrelink / DVA asset and Members having Expos or Open Days are encouraged to
income assessment, investing excess monies and what is the consider inviting our Regional Manager along to their event.
most financially efficient upfront payment to make for now and We will welcome the opportunity to provide service and value
in the future. An opportunity for our members to learn more whenever and wherever we can.
about the financial implications for potential residents and to
SA/NT Manager of the Year
reinforce the benefits of gaining financial advice on the ‘best
Chris Quinn of Programmed Property Services, the Award
stage of their lives’.
Sponsors, presented the winner of the SA/NT Manager of the
July ’09 – ‘Myth Busting the Act’ plus ‘Our Sales
Year (MOTY) Award, Gareth Norman of Salford Living, with his
Responsibilities’ & ‘The DMF and how do we sell it’. These
trophy at the Awards Presentation Night held on 30th July
interactive sessions were presented by Jodie Prosser of
2009. We congratulate him on his success. As usual, it was a
Optimum Retirement Services and Julia Sweeney of Fisher
challenging task for the judging panel as all participants are
Jeffries with practical activity and discussion topics that
broadened all attendees’ knowledge. This session was very well
received with our largest contingent of attendees both
members and non-members. A real example of “value-
addedness” for our industry.
The Retirement Villages Mini Expo 2009 was held on
Tuesday 12th May and attended by 140 potential residents
spread over 2 sessions. Organised by the Seniors Information
Service the RVA was asked to be involved to speak on the
value and benefits of retirement living. The Expo was a
successful event for all concerned and we thank SIS for the
opportunity to be involved. Discussion on the next Expo has
commenced.
The 8th Annual RVA & ACS SA/NT Conference held in May
focused on ‘Sustainability and Viability in Retirement Living’
was very successful with 102 delegates in attendance. The
Keynote Speaker was John Brodie – Founder and Principal of
VIM Sustainability who presented on the built environment’s
impact of climate change and on future costs of electricity and
the factors contributing to this increase. The panel discussions
generated more ideas on how practical implementation can
occur in the reduction of our carbon footprint. One of our RVA
‘legends’, Jim Hazel, was a facilitator and we thank him for his
participation on the day and all other speakers and presenters
who contributed to a very successful conference.
Planning is underway for next year’s event on May 21st
2010. ‘Managing Today from Tomorrow’ is the programme title
for our 9th joint conference.
Professional Development & Training Seminars continue to
be a high priority of the RVA and we endeavour to provide
subjects and topics that will educate and broaden knowledge
63
RVA Yearbook 2009
People
worthy winners in their own right and nomination is The RVA increased its commitment and sponsorship of the
acknowledgement of the esteem in which they are held by Seniors Information Service in the 2009/10 financial year,
their residents and management alike. specifically in the new format SIS Retirement Housing
Also present was Ray Wood of The Senior, the Media Directory. A valuable partnership for all Members and potential
Sponsor for the MOTY Award. residents in retirement living.
We thank our sponsors for their ongoing support of the The RVA maintains its involvement in COTA’s Every
Manager of the Year Awards and encourage you to consider Generation Festival and supports the recognition of the senior
nominating your village managers in next year’s event. population.
Our working relationships with OFTA, RVAC & ACS are of
Industry Relationships and Annual Sponsorships
communication, education, respect and mutual support.
The SA/NT office is proud of its relationships with the following
We continually assess and develop our relationships and
bodies and we continue to liaise together to ensure effective
annually review our sponsorships. We also look for other
and mutually beneficial outcomes.
opportunities where there may be partnerships that are
• South Australian Retirement Village Residents Association
mutually beneficial.
(SARVRA)
• Seniors Information Service (SIS) Professional Advice and Assistance
• Council on the Ageing (COTA) On behalf of the SA/NT RVA office we acknowledge and
• Office for The Ageing (OFTA) sincerely thank our sponsors, partners and members for their
• Retirement Village Advisory Committee (RVAC) support and participation, professional advice and assistance
• Aged and Community Services SA/NT (ACS) during the year. We look forward to continuing this year’s
SARVRA President, Joan Stone, has demonstrated success into the future.
leadership and professionalism in this role and brought a
further dimension to the table with a resident view. Joan is also Dennis Chamberlain
a long-standing member of the National Accreditation Chairperson, SA/NT Regional Committee 2009
Committee, and the RVA thanks her for her ongoing
commitment to the Australian Retirement Village Accreditation
Scheme (ARVA).
64
New
developments
in retirement Lewis Holdway Lawyers are an
established firm of commercial
People
2008/09 has been a year of strong growth for the Victoria and Victoria/Tasmania Manager of the Year
Tasmania region. The year’s results are even more impressive The RVA is committed to the continuous performance
considering the impact of the Global Financial Crisis and improvement, training and development of village managers—
provide a strong foundation for the region to continue to grow the custodians of the critical interface between our business
into the future. and our customers.
The RVA responds to many enquiries from RVA members The Village Manager of the Year (MOTY) Award recognises
and the general public on a whole range of issues. This report high achieving managers who exemplify the increasing
highlights just some of the many achievements through the standards of our industry operations. MOTY is a highly coveted
year. award and very competitive. The winner of the Victoria
Over six hundred information packs were sent to Tasmania Manager of the year for 2008 was Penny Lloyd of The
prospective residents during the year. The packs include ‘Your Village Williamstown. Congratulations Penny!
Questions Answered’ and accreditation information, a
Consumer Affairs Victoria booklet and letter from the Regional
Membership
Manager. RVA Membership has seen strong growth across all categories
The purpose of these packs is to: in the region, which is a positive indicator of the value that the
1. provide relevant information to assist consumers to RVA contributes to industry stakeholders.
understand the benefits of Retirement Village living Member Membership Membership
Change %
category 30 June 2008 30 June 2009
2. give prospects confidence that they are dealing with a
Village 133 145 12 +8%
professional and credible industry
3. promote the industry’s commitment to operational Associate 25 32 7 +21%
67
Pianos and Pianola’s direct
from the importer
RETIREMENT VILLAGE
DESIGNERS
People
69
RVA Yearbook 2009
People
well located sites are made available for Retirement Village Village living in specialist publications in Victoria and
living. Tasmania such as the Retirement Living Magazine, with over
15,000 print copies distributed across Australia and The Senior
Municipal Rates on Retirement Village Units
Newspaper with 95,878 copies (CAB audited figure)
The RVA is advocating on the legislative issues for the
distributed to over 2000 outlets in Victoria.
reduction on Council rates payable by residents in retirement
villages. Melbourne Retirement & Lifestyle Expo
The RVA holds the view that units within a Retirement The 5th Melbourne Retirement & Lifestyle Expo was held at
Village should be charged less than single block properties Caulfield Racecourse in September 2008. The RVA’s stand was
because of the range of infrastructure and health type supported by 4 sponsors and brochures were distributed to
community services that are not drawn upon as with single promote members to over 15,000 potential residents.
block properties.
Retirement Village Open Day
In addition, rates have been increasing at a greater rate than
The RVA also promoted Retirement Village Open Day at
that of the aged pension which means that the maximum
Melbourne Retirement & Lifestyle Expo by distributing a
pensioner concession (currently capped at $168) is far below
brochure listing participating villages to over 15,000 potential
the 50% rebate which was the original intention of the
residents.
concession.
The public had the opportunity to visit and find out more
The RVA created a working party in 2008/2009 that has
about Retirement Village living when over 70 retirement
been working solidly over the year to compile all relevant
villages opened their doors for a weekend in October 2008
information on the issue and will soon have a draft issues
over Seniors Week.
paper completed that will be presented to the Victoria and
A half page advertisement, listing all villages, with a
Tasmania Regional Committee.
photograph and an editorial was published in The Senior.
The Working Party has also met with CAV and the Minister
for Consumer Affairs (the Hon Tony Robinson) on this Liaison with other organisations
important issue. The RVA engages with, and supports, related industry
The RVA is also working on issues such as local councils associations and continues to encourage dialogue to ensure
being stripped of their valuation duties and the state effective and mutually beneficial outcomes. The organisations
government taking over land valuations. This change is likely to include:
have significant ramifications to retirement villages and how • Residents of Retirement Villages of Victoria
units are valued. • Council on the Ageing
The RVA has also worked closely with villages that are • Consumer Affairs Victoria
lobbying their local councils to ensure a collective voice is • Aged & Community Care Victoria
heard. This, in conjunction with the draft issues paper, will lead • Housing for the Aged Action Group Inc.
into the development of a clear strategic direction for local
Professional Development – Forums and Seminars
government rates that will benefit both village operators and
A successful range of forums and information seminars were
village residents while being acceptable to state and local
held during the year and provided invaluable information to
government.
village managers and staff, as follows:
Workcover • Essential service preventative maintenance and evacuation
The RVA have prepared a discussion paper on worksafe injury procedures in Retirement Villages, presented by Trevor Cass
insurance classification and premiums as there is not a and Leigh Fraser both of Riley Shelley and Cheryl Hambly
dedicated category for Retirement Village Managers for the of NBRC respectively September 2008
purpose of determining work cover premiums. The RVA will • Complaints Management, presented by Steve Aivaliotis, in
lobby the Victorian WorkCover Authority for a review. December 2008
Other seminars included:
Industry Promotion • How to prepare for accreditation courses
To support members, the RVA continues to promote Retirement
• How to manage effective workplace relationships
70
RVA Yearbook 2009
People
71
Innovation in Retirement Living
Arcadia Group designs and builds luxury retirement communities. Modelled on their award-winning
Arcadia Waters resort-styled community in Perth, the group is currently building two new resort
communities in Geraldton and Port Denison in Western Australia and is involved in other major
residential retirement developments in Malaysia.
For further information on Arcadia Group, contact their head office in Perth on (08) 9218 8388 or visit
their website at www.arcadiawaters.com.au.
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RVA Yearbook 2009
People
WA Regional Report
GOVERNANCE
Review of the Retirement Villages Act in WA
In a major undertaking, the members of regional committee
responded to a paper released by the Department of Consumer
and Employment Protection (DOCEP) containing the findings
of a comprehensive review of the Retirement Villages Act in
WA. The paper was released following numerous public WA have also commenced. Topics covered in Forums and
forums which were all attended by volunteers of the regional Workshops throughout the year have included Transition into
RVA. Our response numbered some 80 pages. DOCEP have Formal Care, 1st 24 hours - WA Coroner’s Office and Dealing
now issued a Draft Report of recommendations (82 in total) with Challenging People. Thanks to Ali White for her work
and the regional committee are in the final stages of submitting chairing this very important portfolio.
our response. I would like to thank the committee – in COMMUNICATIONS & MEMBERS RELATIONS
particular Everard Yeo, Stephen Kenney and Adrian Pagett for
their ongoing dedication in this important and technically Best of the West
precise undertaking. One of our region’s major communications initiatives will take
place at the end of October when a 24 page stitched and
PROFESSIONAL DEVELOPMENT AND trimmed full colour magazine will be inserted into the West
REGIONAL CONFERENCE Australian paper and delivered to some 600,000 readers
(301,000 over the age of 50). Designed as a reference guide to
Education – AIM Diploma
the market, the magazine will provide information about the
As part of our continuous improvement policy the regional
role of the RVA, its member villages as well as ageing and
RVA partnered with the Australian Institute of Management in
industry trends and will have a particular focus on the
WA to develop and deliver a Diploma in Business (Village
association’s accreditation scheme. We will provide
Management) course which commenced in January of 2007.
professional editorial style copy ensuring longevity. This lift-out
Graduation took place in December 2008 and feedback from
provides an outstanding opportunity for RVA Members,
Village Managers attending was very positive. The regional
accredited members and associate members to reach their
Professional Development subcommittee chaired by Alison
target market. I am pleased that the minimum revenue required
Rogers is currently reviewing the course and will be submitting
to produce this magazine has been comfortably surpassed and
any improvements or recommendations required for regional
offer thanks to members for their confidence in supporting this
committees’ consideration prior to launching the next course.
important undertaking and in particular my fellow colleagues
WA RVA Conference Phil Simich and Linda Smith for their professional assistance.
Some 120 delegates attended a very informative regional
West Australian Retirement Pages
conference early August at the beautiful Vines Resort in the
Our key industry partnership with the West Australian
Swan Valley. More than 100 delegates attended the Grand Ball
continues and we thank them for providing the RVA with space
that evening and I am pleased to report the overwhelming
inside their Retirement Living lift-out to promote members and
majority of feedback simply praised the event organisers for
services. This is a wonderful vehicle for promoting the brand of
running a wonderful event. Thanks must go to Roger Kwok and
the RVA and moreover village members who are able to submit
Linda Smith for their efforts which were ably supported by staff
copy for inclusion. Committee will be reviewing page content
and volunteers.
with a view of ensuring it remains contemporary and useful to
Managers’ Networking Forums all readers.
Managers’ Networking Forums continue to be well attended in Newsletter – The Regional Manager has commenced a
Perth. Networking Forums in Mandurah and Regional areas in weekly newsletter to all members informing them of all topical
73
RVA Yearbook 2009
People
WA Regional Report
matters and upcoming events. Given the support for our member Noreen Byrne who heads up our Standards
monthly forums it does appear this initiative is welcomed by subcommittee. Noreen runs workshops throughout the year to
our members and complements the newsletters we receive provide practical assistance to those seeking accreditation for
from national. the first time or even members renewing their accreditation.
Face to face meetings – Our regional manager Linda Smith Noreen also assists the Association on the national Standards
has implemented a pro-active meeting schedule between herself committee and is an integral reason why the Accreditation
and members, associate members and potential members to Scheme is so robust and well regarded.
discuss initiatives and services that may be of benefit.
Membership
RVA Christmas Function – The annual RVA Christmas
The WA region welcomed two new villages and five new
Cocktail functions are well supported and provide an
sssociate members during the past five months and we look
important opportunity for members to network with other
forward to the business development initiatives introduced by
members including committee.
our CEO Andrew Giles delivering an ever wider stream of new
STANDARDS & ACCREDITATION applicants in the coming years.
Two Accreditation Surveyors Courses were conducted during
WA RVA Staff
May and October 2009 which were well attended by
Our Regional Manager Linda Smith has completed five months
interested parties wishing to become involved with the
of service at time of writing and is actively promoting the
Accreditation Scheme albeit from ‘the other side of the fence’.
services and benefits of membership to industry. Assisting
How to prepare for accreditation courses were also
Linda is Michaela Purwien who assists in the office on a
conducted in May and October 2009. The importance of these
Monday and Thursday and has become a popular member of
courses is demonstrated by the fact the Associations Standards
the team.
Manager, Gary Metcalf, now runs these with excellent
Regional Committee – The Regional Committee undertakes
feedback received.
significant voluntary work on behalf of all members and I
Accreditation thank them for the professional way in which they conduct not
14 villages were awarded with their Accreditation Certificates only themselves but the manner in which they represent the
during the financial year ending June 30 2009. Currently, just Association.
over 34% of member villages in this state are Accredited.
Angus Kukura
Accreditation Workshops WA Regional Chairperson
I would like to acknowledge the work performed by committee
74
RVA Yearbook 2009
Performance
Sanctuary Energy
75
RVA Yearbook 2009
Performance
Sanctuary Energy
quarter. 0.8000
0.9000 0.7000
0.8000 0.6000
0.7000 0.5000
0.6000 0.4000
0.5000 0.3000
0.4000 0.2000
0.3000 0.1000
12:00:00AM
2:00:00AM
4:00:00AM
6:00:00AM
8:00:00AM
10:00:00AM
12:00:00PM
2:00:00PM
4:00:00PM
6:00:00PM
8:00:00PM
10:00:00PM
0.2000
0.1000
12:00:00AM
2:00:00AM
4:00:00AM
6:00:00AM
8:00:00AM
10:00:00AM
12:00:00PM
2:00:00PM
4:00:00PM
6:00:00PM
8:00:00PM
10:00:00PM
No Solar Panel With a Solar Panel Daily Service Charge2 $168.63 $168.63
Summary of Results
Electricity1 $713.16 $713.16 Sub Total $1,594.95 $1,594.95
76
RVA Yearbook 2009
Performance
Sanctuary Energy
huge benefits from installing solar at zero cost. in the same way a coal steam turbine plant works. The result is
Sanctuary Energy are to provide a free spilt level solar hot potentially hundreds of megawatts of clean power for a much
water system to the eligible retirement village residents. lower cost per unit of energy.
The terms and conditions would simply include:
1. The solar hot-water system must be replacing an existing
THE IMPACT OF THE EMISSIONS TRADING
electric hot water system; SCHEME (ETS) ON EVERYONE
2. Sanctuary Energy would install a split level solar hot water The Carbon Pollution Reduction Scheme introduced by the Rudd
system; Government will set an overall environmental cap on pollution
3. The Federal and State Government would pay $2,400 to by issuing a set number of permits, and allow entities to trade
the customer; those permits, hence putting a price on carbon. This price that is
4. The $2,400 is paid from the resident to Sanctuary Energy; placed on carbon will be passed on to the end consumer which
and the customer would save approximately $300 per year will effectively increase the cost of electricity for those who have
on energy costs. taken no measures to reduce their carbon emissions.
Example of Solar Panels fitted to residential premises. Large Scale Solar Technology
77
RVA Yearbook 2009
Performance
Going Green
Scott Lambert, Holding Redlich Lawyers, suggests some key points to
consider before embarking on a green rating project.
Launched in 2003 by the Green Building Council of Australia, addition of innovation. Within each category, points are
the Green Star program is a voluntary environmental rating awarded for initiatives that demonstrate that a project has met
system for buildings in Australia. The program has produced a the overall objectives of Green Star and the specific criteria of
suite of tools for various types of buildings, including the relevant rating tool credits. Points are then weighted and an
commercial offices. overall score is calculated, determining the project’s Green Star
The tools rate a building in relation to its management, the rating.
health and wellbeing of its occupants, accessibility to public Partner of Holding Redlich Lawyers, Scott Lambert has 20
transport, water use, energy consumption, the embodied years experience in the construction and development industry
energy of its materials, land use and pollution. and is the only law firm partner in Queensland who is an
In April/May 2008 edition, Stephanie White, Master accredited Green Star professional.
Builders Workplace Health & Safety/Environment Advisor, Scott has put together a suggested checklist of some key
reported that under the Green Star rating system projects are issues to think about before embarking on a green rating
evaluated against eight environmental categories, with the project.
78
RVA Yearbook 2009
Performance
Going Green
79
RVA Yearbook 2009
Performance
Conventional change management approaches have done little Memories come flooding back of significant time and effort
to change the fact that most change programs fail. The odds can invested in “the soft stuff” that, in the end, yielded little tangible
be greatly improved by a number of counter-intuitive insights value.
that take into account the irrational but predictable nature of The focus of McKinsey’s applied research over the last four
how employees interpret their environment and choose to act. years has been to understand why change management efforts
In 1995, John Kotter published what many consider to be consistently fail to have the desired impact and, most
the seminal work in the field of change management, Leading importantly, what to do about it. At this point in our research
Change: Why Transformation Efforts Fail. Kotter’s “call to we don’t claim to have all the answers.
action” cites research that suggests only 30 percent of change We have, however, developed and tested a set of
programs are successful.1 His work then goes on to answer the perspectives in real-life application that senior managers have
question posed in its title and to prescribe what it takes to found genuinely insightful and that have consistently delivered
improve this success rate. business results far beyond expectations.
Kotter is perhaps the most famous purveyor of change
SUCCESSFUL CHANGE REQUIRES
management wisdom, but in fact he is one of many who have a
point of view regarding how managers and companies can best
UNCOMMON SENSE
manage change. In the last two decades, literally thousands of Digging deeper into why change programs fail reveals that the
books and journal articles have been published on the topic. vast majority stumble on precisely the thing they are trying to
Today, there are more than 1,800 books available on transform: employee attitudes and management behavior
Amazon.com under the category of “Organisational Change.”2 (versus other possible sources such inadequate budget, poorly
The field has developed to the extent that courses dedicated deployed resources and poor change architecture).6
specifically to managing change are now part of the curriculum Literally thousands of prescriptions are put forward in
in many major MBA programs.3 various change management publications regarding how to
With so much research done and information available on influence employee attitudes and management behavior.
managing change, it stands to reason that change programs However, the vast majority of the thinking is remarkably similar.
today should be more successful than those of more than a Colin Price and Emily Lawson provided a holistic perspective in
decade ago, right? their 2003 article, The Psychology of Change Management, that
The facts suggest otherwise. McKinsey & Company recently suggests that four basic conditions have to be met before
surveyed 1,546 business executives from around the world, employees will change their behaviour:7
asking them if they consider their change programs A. A compelling story: They must see the point of the change
“completely/mostly” successful: only 30 percent agreed.4 and agree with it, at least enough to give it a try
Further investigation into a number of similar studies over B. Role modelling: They must also see colleagues they admire
the last 10 years reveals remarkably similar results.5 The field of modelling the desired behaviour
change management, it would seem, hasn’t really changed a C. Reinforcement systems: Surrounding structures, systems,
thing. processes and incentives must be in tune with the new
This failure to live up to its promise is why many senior behaviour
executives today recoil at the mere mention of the words D. The skills required for change: They need to have the skills
‘change management’. to do what is required of them.
80
RVA Yearbook 2009
Performance
This prescription is well grounded in the field of psychology for investing time and effort in areas that your rational mind will
and is entirely rational. Putting all four of these conditions in tell you shouldn’t matter as much as they do) on how to
place as a part of a dynamic process greatly improves the improve the odds of leading successful change. We illustrate
chances of bringing about lasting changes in the mindsets and these approaches through concrete examples of how various
behaviors of people in an organisation – and thus achieves companies have, either by conscious awareness, intuition, or
sustained improvements in business performance. simple luck, leveraged predictable employee irrationality to
One of the merits of the approach above is its intuitive great effect in making change happen.
appeal, so much so that many managers feel that, once Dealing with the human side of change is not easy. As
revealed, it is simply good common sense. And this, we Nobel Laureate Murray Gell-Mann once said, “Think how hard
believe, is precisely where things fall apart. The prescription is physics would be if particles could think.” All told, we don’t
right, but rational managers who attempt to put the four expect our advice to make your life as a change leader any
conditions in place by applying their “common sense” intuition easier. We are convinced, however, it will have more impact.
typically misdirect time and energy, create messages that miss
A. THE INCONVENIENT TRUTH ABOUT CREATING A
the mark, and experience frustrating unintended consequences
from their efforts to influence change.
COMPELLING STORY
Why? In implementing the prescription, they disregard a Change management thinking extols the virtues of creating a
scientific truth of human nature: people are irrational in many compelling change story, communicating it to employees and
predictable ways. The scientific study of human irrationality has following it up with ongoing communications and involvement.
shown that many of our instincts related to understanding and This prescription makes sense, but in practice three
influencing our own and others’ motivations push us towards inconvenient truths often get in the way of this approach
failure instead of success. We systematically fall victim to achieving the desired impact.
subconscious thought processes that significantly influence our Inconvenient Truth #1: What motivates you doesn’t motivate
behavior, even though our rational minds tell us they shouldn’t. (most of) your employees.
How many of us drive around looking for a close parking place We see two types of change stories consistently told in
to “save time” for longer than it would have taken to walk from organisations. The first is the “good to great” story along the
the available parking spaces? How about falling into the trap of lines of “Our historical advantage has been eroded by intense
spending $3,000 to upgrade to leather seats when we buy a competition and changing customer needs; if we change, we
new $25,000 car, but finding it difficult to spend the same can regain our leadership position once again, becoming the
amount on a new leather sofa (even though we know we will undisputed industry leader for the foreseeable future and
spend more time on the sofa than in the car)? Are you willing to leaving the competition in the dust.” The second is the
take a pencil home from work for your children to use, but are turnaround story along the lines of, “We’re performing below
not willing to raid the company’s petty cash box for the money industry standard and must change dramatically to survive;
to buy a pencil for the same purpose? These examples point to incremental change is not sufficient – investors will not
how all of us are susceptible to irrationality when it comes to continue to put money into an underperforming company. We
decision making. 8 are capable of far more based on our assets, market position,
In the same way that the field of economics has been size, skills and loyal staff. We can become a top quartile
transformed by an improved understanding of how uniquely performer in our industry by exploiting our current assets and
human social, cognitive and emotional biases lead to seemingly earning the right to grow.”
irrational decisions,9 so too the practice of change management These stories both seem rational, yet they too often fail to
is in need of a transformation through an improved have the impact that change leaders desire. Research by a
understanding of the irrational (often unconscious) way in number of leading thinkers in the social sciences, such as
which humans interpret their environment and choose to act. Danah Zohar, Chris Cowen, Don Beck and Richard Barrett, has
In what follows we will describe a number of counter- shown that stories of this nature will create significant energy
intuitive insights regarding human irrationality and implications for change in only about 20 percent of your workforce.10 Why?
for putting the four conditions for behavior change into place. The stories above all center on the company – beating the
We will also offer practical – if inconvenient – advice (as it calls
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competition, industry leadership, share price targets, etc. – month, and the program went on to achieve 10 percent
when in fact research shows that there are at least four other efficiency improvements in the first year—a run rate far above
sources of meaning and motivation that can be tapped into to initial expectations.
create energy for change. These include impact on society (e.g.,
Inconvenient Truth #2: You’re better off letting them write
making a better society, building the community, stewarding
their own story
resources), impact on the customer (e.g., making it easier,
Well-intentioned leaders invest significant time in
superior service, better quality product), impact on the working
communicating their change story. Roadshows, town halls,
team (e.g., sense of belonging, caring environment, working
magazines, screen-savers and websites are but a few of the
together efficiently and effectively), and impact on “me”
many approaches typically used to tell the story. Certainly the
personally (my development, paycheque/bonus, empowerment
story (told in five ways!) needs to get out there, but the
to act).
inconvenient truth is that much of the energy invested in
The inconvenient truth about this research is that in surveys
communicating it would be better spent listening, not telling.
of hundreds of thousands of employees to discover which of
In a famous experiment, researchers ran a lottery with a
these five (society, customer, company/shareholder, working
twist. Half the participants were randomly assigned a lottery
team, “me” personally) sources of meaning most motivates
ticket. The remaining half were given a blank piece of paper
them, the result is a consistently even 20 percent split across all
and a pen and asked to write down any number they would
dimensions. Regardless of level (senior management to the
like as their lottery number. Just before drawing the winning
frontline), industry (healthcare to manufacturing), or geography
number, the researchers offered to buy back the tickets from
(developed or developing economies), the results do not
their holders. The question researchers wanted to answer is,
significantly differ.
“How much more do you have to pay someone who ‘wrote
This finding has profound implications for leaders. What the
their own number’ versus someone who was handed a number
leader cares about (and typically bases at least 80 percent of his
randomly?” The rational answer would be that there is no
or her message to others on) does not tap into roughly 80
difference (given a lottery is pure chance and therefore every
percent of the workforce’s primary motivators for putting extra
ticket number, chosen or assigned, should have the same
energy into the change program.
value). A more savvy answer would be that you would have to
Those people leading change should be able to tell “five
pay less (given the possibility of duplicate numbers in the
stories at once” and in doing so unleash tremendous amounts
population who write their own number). The real answer? No
of organisational energy that would otherwise remain latent in
matter what geography or demographic the experiment has
the organisation.
taken place in, researchers have always found that they have to
By way of practical example, consider a cost-reduction
pay at least five times more to those who wrote their own
program at a large US financial services company. The program
number.11
was embarked on with a rational change story that “ticked all
This result reveals an inconvenient truth about human
the boxes” of conventional change management wisdom. Three
nature: When we choose for ourselves, we are far more
months into the program, management was frustrated with the
committed to the outcome (almost by a factor of five to one).
employee resistance inhibiting impact. The team worked
Conventional approaches to change management
together to re-cast the “story” around the cost program to
underestimate this impact.
include an element related to society (to deliver “affordable
The rational thinker sees it as a waste of time to let others
housing”: we must be most affordable in our services),
self-discover what he or she already knows—why not just tell
customers (increased simplicity, flexibility, fewer errors, more
them and be done with it? Unfortunately this approach steals
competitive prices), the company (expenses are growing faster
from others the energy needed to drive change that comes
than revenues, which is not sustainable), working teams (less
through a sense of ownership of “the answer”. Consider another
duplication, more delegation, increased accountability, faster
practical example in Barclays’ Personal Financial Services CEO,
pace), and individuals (bigger, more attractive jobs created: a
David Roberts, who employed a fairly literal interpretation of
great opportunity to “make your own” institution).
the above finding. He wrote his change story in full prose, in a
This relatively simple shift in approach lifted employee
way that he found meaningful. He then shared it with his team,
motivation measures from 35.4 percent to 57.1 percent in a
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Performance
getting feedback on what resonated and what needed further continuous improvement);
clarification. 3. when did you last get coaching from your boss?
He then asked each of his team members to “write their (emphasising the importance of people development); and
own lottery ticket”: what was the change story for them, in their 4. who is the enemy? (emphasising the importance of “One
business, that supports the bigger PFS-wide change story? His Emerson”/ no silos, i.e., he wanted to emphasise the “right”
team members wrote their change story, again in full prose, and answer was the competition and not some other
shared it with their teams. Their teams gave feedback and then department!).
wrote their own story for their area/department, and so the On a final note, many executives are surprised not only by
process continued all the way to the frontline. It took twice as the ownership and drive for implementation that comes from
long as the traditional roadshow approach, but for a five-times high involvement approaches, but also by the improved quality
return on commitment to the program, it was the right of the answers that emerge. As one CEO told us, “I was
investment to make.12 surprised how people stepped up during the direction-setting
Sam Palmisano, current CEO of IBM, in spearheading a process – I was worried about everything getting ‘dumbed
change effort to move IBM towards a values-based management down,’ but in the end we got a better answer because of the
system, enabled thousands of employees to “write their own broad involvement.”
lottery ticket” regarding IBM’s values.
Inconvenient Truth #3: It takes both “+” and “–” to create real
During a three-day, online discussion forum (dubbed
energy
ValuesJam), over 50,000 employees were empowered literally
In 210 B.C., a Chinese commander named Xiang Yu led his
to rewrite IBM’s century-old values.13
troops across the Yangtze River to attack the army of the Qin
Other applications need not be so literal. At a global
(Ch’in) dynasty. Camped for the night on the banks of the river,
consumer goods company the CEO brought together his top
his troops awakened to find their ships on fire.
300 for three two-day “real work” sessions over three months
They rushed to the boats ready to take on their attackers,
where they created the story together. Again, this invested
only to find that it was Xiang Yu himself who had set their ships
significant time, but having the top 300 five-times committed to
ablaze. Not only that, but he had also ordered all the cooking
the way forward was considered well worth the investment. At
pots crushed. Xiang Yu’s logic was that without the pots and the
BP, to develop a comprehensive training program for frontline
ships, they had no other choice but to fight their way to victory
leaders, a decision was made to involve every key constituency
or die trying. In doing so he created tremendous focus in his
in the design of the program, giving them a sense of “writing
troops, who battled ferociously against the enemy and won
their own lottery ticket.” It took a year and a half to complete
nine consecutive battles, obliterating the mainforce units of the
the design using this model, but was well worth it. Now in
Qin dynasty.
implementation, the program is the highest rated of its kind in
The above story is perhaps the ultimate example of creating
BP. It involves more than 250 active senior managers from
a “burning platform” to motivate action – a message that says
across the businesses willingly teaching the course, and, most
“We’ve got a problem, we have to change!” This model is often
importantly, has resulted in managers who have been through
referred to as a deficit-based approach to change. It identifies
the training program being consistently ranked higher in
the problem (what is the need?), analyses causes (what is wrong
performance than those who haven’t, both by their bosses and
here?) and possible solutions (how can we fix it?), and then
by the employees who report to them.14
plans and takes actions (problem solved!). Advocates of this
At a minimum, we advocate that leaders leverage the
approach point out that its linear logic and approach to
“lottery ticket” insight by augmenting their telling of the story
dissecting things to understand them is at the heart of all the
with asking about the story. Consider David Farr, CEO of
scientific progress made by Western civilisation.
Emerson Electric, who is noted for asking four questions related
They also cite examples like that of Xiang Yu, where it has a
to his company’s story of virtually everyone he encounters in
profound effect. Given the case for the deficit-based approach,
the organisation:
it has become the model predominantly taught in business
1. how do you make a difference? (testing for alignment on the
schools and is presumably the default change model in most
company’s direction);
organisations. At success rates of 30%, however, the vast
2. what improvement idea are you working on? (emphasising
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majority of change leaders are not enjoying the same success as positive future. But it is also clear that when it comes to
Xiang Yu did. behavioural change some anxiety is good, and that an over-
Why is this? emphasis on the positive can lead to watered-down aspirations
Research has shown that a relentless focus on “what’s and impact.
wrong” is not sustainable, invokes blame and creates fatigue We believe the field of change management has drawn an
and resistance, doing little to engage people’s passion and artificial divide between deficit-based and constructionist-based
experience, and highlight their success. This has led to the rise approaches. The best answer is an “and” answer. While it is
of what many refer to as the constructionist-based approach to impossible to prescribe generally how the divide should be split
change. In this approach the change process is based on between positive and negative messages, as this will be specific
discovery (discovering the best of what is), dreaming (imagining to the context of any given change program, we strongly advise
what might be), designing (talking about what should be) and managers not to “swing the pendulum” too far in one direction
destiny (creating what will be).15 or another. Consider Jack Welch at GE, who took questions of
Consider a study done at the University of Wisconsin where “what’s wrong here?” (poor performing businesses, impending
two bowling teams were recorded on video over a number of bankruptcy, silo-driven behaviours, bureaucracy, etc.) head on,
games. Each team received a video to study. One team’s video as well as “imagining what might be” (number one or two in
showed only those occasions when it made mistakes. The every business, a “boundaryless” culture of quality, openness,
other’s showed only those occasions when it performed well. accountability, etc.).
The team that studied its successes improved its score twice as Revisiting the University of Wisconsin bowling team
much as the other team. The conclusion is that choosing the experiment mentioned above, we suspect that a team that
positive as the focus of inquiry and storytelling is the best studied its successes and mistakes would outperform teams that
answer for creating change.16 Whereas the deficit-based change studied only either/or.
approach is well suited for technical systems, research into the
B. THE INCONVENIENT TRUTH ABOUT ROLE
constructionist-based approach shows that in human systems a
focus on “what’s right” can achieve improved results.
MODELLING
So should enlightened change leaders shift their focus Conventional change management suggests leaders should take
exclusively to capturing opportunities and building on strengths actions that role model the desired change and mobilise a
instead of identifying and solving problems? We think not. group of influence leaders to drive change deep into the
Humans are more risk averse when choosing among organisation.
options framed as “gains” than when they choose among those Unfortunately, this prescription rarely delivers the desired
framed as “losses.” impact because it neglects two more inconvenient truths about
For example, what would you do if given the choice change management.
between a sure gain of $100 and a 50 percent chance of Inconvenient Truth #4: Your leaders believe they already “are
gaining $200? Social science experiments show that most the change”
individuals are risk averse and take the gain. What would you Most senior executives understand and generally buy into
do if given the choice between a sure loss of $100 or a 50 Ghandi’s famous aphorism, “Be the change you want to see in
percent chance of losing $200? If you are like most individuals, the world.”
you are risk seeking in this case and choose a 50 percent They, often prompted by HR professionals or consultants,
chance of losing $200.17 commit themselves to “being the change” by personally role
A single-minded focus on “what’s possible,” with its bias modelling the desired behaviours. And then, in practice,
towards more conservative choices, flies in the face of nothing significant changes.
achieving radical change. The reason for this is that, as humans, The reason for this is that most executives don’t see
we inherently dislike losses more than we like gains.18 themselves as “part of the problem,” and therefore deep down
The inconvenient truth is that both the deficit based and do not believe that it is they who need to change, even though
constructionist approaches to change have their merits and in principle they agree that leaders must role model the desired
limitations. It is clear that a single-minded focus on today’s changes. Take for example a team that reports that, as a group
problems creates more fatigue and resistance than envisioning a
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and as an organisation, they are low in trust, not customer- great?” in relation to “being the change” and “What makes you
focused and bureaucratic. How many executives when asked small?” Consider the leadership coalition (top 25) of a multi-
privately will say “no” to the questions, “Do you consider regional bank who, after each major event in their change
yourself to be trustworthy?” and “Are you customer focused?” program, conducted a short, targeted 360-degree feedback
and “yes” to the question “Are you a bureaucrat?” Of course, survey regarding how well their behaviours role modelled the
none. The fact is that most well-intentioned and hard-working desired behaviours during the event, ensuring that feedback
people believe they are doing the right thing, or they wouldn’t was timely, relevant and practical.
be doing it. However, most people also have an unwarranted While seemingly inconvenient, these types of techniques
optimism in relation to their own behavior. Consider that 94 help break through the “self-serving bias” that inhibits well-
percent of men rank themselves in the top half of male athletic meaning leaders from making a profound difference through
ability. Of course this is irrational, as mathematically exactly 50 their actions to the ultimate impact of the change program.
percent of males are in the top half of male athletic ability. Note that some readers may be thinking, “But surely there
This isn’t only true for males and athletics – far more than are a few people who are fully role modelling the desired
50 percent of people rank themselves in the top half of driving behaviours – what does this mean for them?” If the purpose of
ability, although it is a statistical impossibility. When couples senior executive role modelling is to exhibit the behaviours
are asked to estimate their contribution to household work, the required that ensure the success and sustainability of the
combined total routinely exceeds 100 percent. change program (e.g., collaboration, agility in decision making,
In many behavior-related areas, human beings consistently empowerment), then the answer is “keep up the good work!” If
think they are better than they are – a phenomenon referred to the answer, however, is expanded to include role modelling the
in psychology as a “self-serving bias.”19 Whereas conventional process of personal behavioural change itself, there is more to
change management approaches surmise that top team role do. Recall that Gandhi also said famously, “For things to
modelling is a matter of will (“wanting to change”) or skill change, first I must change.”
(“knowing how to change”), the inconvenient truth is that the We often cite Tiger Woods’ reaction to his astonishing, 18-
real bottleneck to role modelling is knowing “what” to change below-par victory in the Masters tournament in 1997: he chose
at a personal level. to rebuild his swing. As he practiced many of its 270 elements,
Typically, insight into “what” to change can be created by he endured a period of awkward performance. The press
concrete 360-degree feedback techniques, either via surveys, deemed him a one-Masters wonder. Four years later, he won
conversations or both. This 360-degree feedback should not be the world’s four major golf tournaments in one year, an
against generic HR leadership competency models, but instead unprecedented accomplishment. At one point, Woods’ lead
against the specific behaviors related to the desired changes over the second-ranked player was larger than the gap between
that will drive business performance. This style of feedback can No. 2 and No. 100.21 The lesson is clear: continued success
be augmented by fact gathering such as third party observation requires critical self-examination and growth. Few senior
of senior executives going about their day-to-day work (e.g., executives would suggest they are less in need of personal
“You say you are not bureaucratic, but every meeting you are in learning than Tiger Woods.
creates three additional meetings and no decisions are made”)
Inconvenient Truth #5: Influence leaders aren’t that influential
and calendar analyses (e.g., “You say you are customer focused
Almost all change management literature places importance on
but have spent 5 percent of your time reviewing customer-
mobilising a set of “influence leaders” to help drive the change.
related data and no time meeting with customers or
Typically guidance is given to find and mobilise those in the
customer-facing employees”).
organisation who either by role or personality (or both) have
Consider Amgen CEO Kevin Sharer’s approach of asking
disproportionate influence over how others think and behave.
each of his top 75, “What should I do differently?” and sharing
We believe this is sound and timeless advice – indeed having a
his development needs and commitment publicly with them.20
cadre of well-regarded people proactively role modelling and
Consider the top team of a national insurance company who
communicating the change program is a “no regrets” move.
routinely employed what they called the “circle of fire” during
However, since Malcom Gladwell popularised his “law of the
their change program: Every participant receives feedback live
few” in his best-selling book, The Tipping Point, we have
in the room, directly from their colleagues on “What makes you
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observed that the role of influence leaders has moved from properties of the random smoker who unwittingly tossed a
being perceived as a helpful element of a broader set of smoldering cigarette butt into a patch of parched grass in the
interventions to a panacea for making change happen (likely an middle of a forest during a drought.23
unintended consequence of Gladwell’s work which itself was The inconvenient truth is that it is not enough to invest in a
directed towards marketers versus change leaders). Gladwell’s few rather than in many as a way of catalysing desired changes,
“law of the few” suggests that rare, highly connected people no matter how appealing the idea is. We warn against
shape the world. He defined three types of influence leaders overestimating the impact a group of influence leaders can have
that are among this select group: Mavens – discerning and, in turn, overinvesting in them in a world of scarce resource
individuals who accumulate knowledge and share advice; (time, money, people). We advocate that change leader
Connectors – those who know lots of people; and Salespeople – attention should be balanced across all four conditions for
those who have the natural ability to influence and persuade change – a compelling story, role modelling, reinforcement
others. systems, and the skills required for change – to ensure they are
Gladwell famously illustrates his point with the example of reinforcing in ways that maximise the probability of the change
Hush Puppies. The footwear brand was dying by late 1994 – “spark” taking off like wildfire across the organisation.
until a few New York hipsters began wearing their shoes. Other
C. THE INCONVENIENT TRUTH ABOUT
fashionistas followed suit, whereupon the cool kids copied
them, the less-cool kids copied them, and so on, until voilà!
REINFORCING MECHANISMS
Within two years, sales of Hush Puppies had exploded by 5,000 Conventional change management emphasises the importance
percent, without a penny spent on advertising.22 Compelling of reinforcing and embedding desired changes in structures,
stories such as this have been interpreted by many change processes, systems, target setting and incentives. If you want
leaders as evidence that the lion’s share of their role should collaboration, create cross-functional teams. If you want
focus on getting the influence leader equation right and – voilà! customer focus, make sure your systems give you a full picture
– all else will follow. of the customer relationship.
Duncan Watts, a network-theory scientist working for If you want just about any behavior, make people’s
Yahoo!, has conducted a number of experiments that help paycheque dependent on it, and so the logic goes. Again, these
explain why “influence leaders” are not the panacea the above are all perfectly rational until confronted with two inconvenient
example implies. In the context of the Hush Puppies story, he truths.
essentially posed the more expansive question, “Given East Inconvenient Truth #6: Money is the most expensive way to
Village hipsters were wearing lots of cool things in the fall of motivate people
1994, why did only Hush Puppies take off? Why didn’t their Upton Sinclair once wrote, “It is difficult to get a man to
other clothing choices reach a tipping point too?” His research understand something if his salary depends upon him not
shows that influence leaders are no more likely to start a social understanding it.”24 If a change program’s objectives are not
“contagion” than the rank and file. He concludes that success linked somehow to employee compensation, this sends a strong
depends less on how persuasive the “early adopter” is, and message that the change program is not a priority, and
more on how receptive the “society” is to the idea. To start a motivation for change is adversely affected. The flip-side,
social epidemic is less a matter of finding the mavens, however, is not true.
connectors, and salespeople to do the infecting and more a When change program objectives are linked to
matter of developing the “virus” that society is a fertile compensation, motivation for change is rarely meaningfully
spreading ground for. enhanced. The reason for this is as practical as it is
Watts suggests a better metaphor than a virus – a forest psychological in nature. Consider the change manager who is
fire – for the way social influence really works. There are working to link the change program with compensation.
thousands of forest fires a year, but only a few become roaring He or she is faced with existing executives’ annual
monsters. Why? compensation plan that is typically comprised of three
Because in those rare situations the landscape is ripe: sparse elements: a portion dependent on how the corporation does
rain, dry woods, badly equipped fire departments. In these (typically an earnings or return on capital number for the whole
situations, no one will go around talking about the exceptional
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company), a portion dependent on how the leader’s specific McFarlane of ANZ Bank sent a bottle of champagne to every
business or function does, and a portion dependent on employee for Christmas with a card thanking them for their
individual goals, often related to operations or people. work on the company’s “Perform, Grow and Breakout” change
The rational change manager dutifully builds change- program. The CEO of a large multi-regional bank sent out
program impact into earnings forecasts and business personal thank-you notes to all employees working directly on
unit/functional financial operating plans. Come review time, the company’s change program to mark its first-year
however, he/she realises that with the myriad of controllable anniversary. Most change managers would refer to these as
and uncontrollable variables that influence the financial merely token gestures and argue that their impact is limited and
outcomes, the link to specific change program implementation short-lived.
becomes weak at best. Employees on the receiving end beg to differ. Recipients of
Operational (non-financial) impact from change program these “dime in the photocopier” equivalents consistently report
implementation creates a stronger link to outcomes and back that the rewards have a disproportionately positive impact
individual efforts. Unfortunately, however, the weighting of on change motivation that lasts for months, if not years.
non-financial outcomes from the change program in the context The reason these small, unexpected rewards have such
of the vast array of other metrics also “linked” to rewards (e.g., impact is because employees perceive them as a “social
compliance, safety, social responsibility, diversity, talent exchange” with the company versus a “market exchange.” To
development, leadership competencies) renders any link to understand the difference, consider the following: Assume you
compensation hardly relevant. are at your mother-in-law’s house for Thanksgiving dinner. She
The reality is that in the vast majority of companies it is has spent weeks planning the meal and all day cooking. After
exceedingly difficult to meaningfully link a change program to the meal you thank her and ask her how much you should pay
individual compensation. So why not just change the for the experience. What would her reaction be? Most people
compensation approach? This is of course an option, but easier report that their mother-in-law would be horrified and the
said than done and certainly not without risk and potential relationship damaged as a result.
unintended consequences when considering that change must Why? The offer of money takes the interaction from a social
happen in real time—the organisation must continue to carry norm, built around a reciprocal, long-term relationship, to a
out its day-to-day tasks and functions while at the same time market norm that is more transactional and shallow. Back to
fundamentally rethinking them. The good news is that there are your mother-in-law, would she have accepted a nice bottle of
easier, relatively inexpensive ways to use incentives to motivate wine for the table as a gift from you?
employees for change. Likely yes, as small, unexpected gifts indicate that social
In one study, researchers gave people a tiny gift and norms are at play.26 Consider the study of a daycare centre
measured the increase in satisfaction with their lives. where a $3 fine was imposed for parents picking up their
Specifically half of a group of people who used a photocopier children late. When the fine went into place, incidents of late
found a dime in the coin return. How much did the gift pickups went through the roof. Why? Before the fine was
increase their satisfaction with their lives? When asked about imposed, the daycare staff and the parents had a social
how satisfied they were with their lives, those with the dime contract – for the parents, feeling guilty about being late
were 6.5 on a 7 scale whereas those without were only 5.6.25 compelled them to be more prompt in picking up their kids.
Why such a lift in satisfaction for such little reward? For human Once the fine was imposed, the daycare centre had
beings it holds that satisfaction equals perception minus inadvertently replaced social norms with market norms. Free
expectation (an equation often accompanied by the from feelings of guilt, parents frequently chose to be late and
commentary, “reality has nothing to do with it”). The beauty of pay the fee (certainly not what the centre had intended!).27
this equation for change managers is that small, unexpected When it comes to change, social norms are not only
rewards can have disproportionate effects on employees’ cheaper than market norms, but often more effective as well. By
“satisfaction” with a change program. way of example, consider the AARP (American Association of
Gordon M. Bethune, while turning around Continental Retired Persons) which asked some lawyers if they would offer
Airlines, sent an unexpected $65 check to every employee less expensive services to needy retirees, at something like $30
when Continental made it to the top 5 for on-time airlines. John an hour. The lawyers said no. Then the program manager from
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AARP had the idea to ask the lawyers if they would offer free Where possible, price over-rides were then used to show
services for needy retirees. good faith to customers and inflict retribution on the “greedy”
Overwhelmingly, the lawyers said yes. When compensation executives.
was mentioned the lawyers applied market norms and found In making any changes to company structures, processes,
the offer lacking. When no compensation was mentioned they systems and incentives, change managers should pay an
used social norms and were willing to volunteer their time.28 unreasonable amount of attention to employees’ sense of the
fairness of the change process as well as the outcome.
Inconvenient Truth #7: A fair process is as important as a fair
Particular care should be taken where changes effect how
outcome
employees interact with one another (headcount reductions,
Consider a bank which, as part of a major change program,
changes to processes such as talent management, annual
diagnosed that its pricing did not appropriately reflect the credit
planning, etc.) and with customers (sales stimulation programs,
risk that the institution was taking on. New risk-adjusted rate of
call centre re-designs, pricing, etc.). Ironically, in the pricing
return (or RAROC-based) models were created, and the
example described above, the outcome is inherently fair
resulting new pricing schedules delivered to the frontline. At the
(customers are asked to pay commensurate to the risk the bank
same time, sales incentives were adjusted to reward customer
is taking on), and therefore the downward spiral described
profitability versus volume. The result? Customer attrition (not
could have been avoided (and has been by other banks
only of the unprofitable ones) and price over-rides went through
adopting RAROC-based pricing) by carefully tending to
the roof and, ultimately, significant value was destroyed by the
employees’ perceptions of fairness in the communications and
effort. The rational change manager scratches his or her head in
training surrounding the changes.
confusion wondering, “What went wrong?”
“Ultimatum games” offer a compelling example of the D. THE INCONVENIENT TRUTH ABOUT CAPABILITY
inconvenient truth at play here. Give a stranger $10. Tell them BUILDING
they must split the money with another stranger however they Conventional change management emphasises the importance
wish. If the person accepts the offer, the money is split. If they of building the skills and talent needed for the desired change
reject the offer, no one gets any money. Studies show that if the to be successful and sustainable. Though hard to argue with, in
offer is a $7.50/$2.50 split, more than 95 percent will reject it, practice there are two more inconvenient truths that demand
preferring to go home with nothing than to see someone attention if one is to successfully build the needed capabilities.
“unfairly” receive three times as much as they do.29 You may be
thinking to yourself that with a total pie of $10 to share, Inconvenient Truth #8: Employees are what they think
unequal allocations are rejected only because the absolute Many managers believe in their heart of hearts that the “soft
amount of the offer is low. stuff” – employees’ thoughts, feelings and beliefs – has no place
Seemingly irrationally, however, the “ultimatum game” in workplace dialogue. “All that matters is that they behave in
findings are the same even when the absolute amount of the the ways I need them to; it doesn’t matter why,” they will say.
offer is equivalent to two weeks of wages.30 The inconvenient While rational – behaviours drive performance after all – this
truth is that employees will go against their own self-interest view misses the point that it is employees’ thoughts, feelings
(read: incentives) if the situation violates other notions they and beliefs that drive their behaviours. Ignoring the underlying
have about the way the world should work, in particular, in mindsets of employees during change is to address symptoms
relation to fairness and justice. In the case of the banking price- rather than root causes.
rise example described above, whether right or wrong, the Consider an analogy from operations management. When a
frontline view of the pricing and incentive changes was that motor burns out on a machine on the shop floor it is replaced,
they were unfair to the customer, a symbol of increasingly right? Effective managers will only replace the engine once the
greedy executives losing sight of customer service. Even though root causes are known: “Why did the motor burn out?” Because
it meant they were less likely to achieve their individual sales it overheated. “Why did it overheat?” Because it was
goals, a significant number of bankers vocally bad-mouthed the insufficiently ventilated. “Why was it insufficiently ventilated?”
bank’s policies to customers, putting themselves on the Because the machine is too close to the wall. The operator then
customer’s side, rather than the bank’s. moves the machine away from the wall and replaces the motor.
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Not doing so would mean the fix would be short-lived (the new related to personality types, emotional intelligence and
motor would have quickly burned out too, due to the lack of vocational identity (recasting “sales” as the more noble pursuit
ventilation). A far better solution is achieved by addressing the of “helping customers discover and fulfill their unarticulated
root cause. needs”). This enhancement not only put the program back on
Let’s see how this applies to change management. Consider track within six months, but also ultimately delivered
a bank that through a benchmarking exercise found that its sustainable sales lifts in excess of original targets.
sales per banker were lagging the competition. “Why are sales Those skeptical of the importance of mindsets are
per banker lower?” the rational manager asks. Analysis shows encouraged to consider the Roger Bannister story. Until 1954,
bankers are not spending enough time with customers. “Why the four-minute mile was considered to be beyond human
aren’t they spending more time with customers?” Because a achievement. Medical journals of the day went so far as to
significant amount of their time is spent completing paperwork. declare it an impossible “behaviour.” In May of that year,
With this diagnosis the bank set about reengineering the loan- however, Roger Bannister broke this barrier, running the mile in
origination process to minimise paperwork and maximise 3 minutes, 59.4 seconds. What is perhaps more amazing is that
customer-facing time. Not only that, bankers are provided with two months later it was broken again, by Australian John Landy.
new sales scripts and easier-to-use tools so that they’ll know And within three years, 16 other runners had also broken
what to do with the extra time in front of the customer. Training this record. What happened? A sudden spurt in human
on the new processes and tools is administered and, voilà, evolution? Genetic engineering of a new super race of runners?
problem solved. Except for the fact that six months later, the Of course not. It was the same human equipment, but with a
levels of improvement are far lower than envisioned. different mindset – one that said “this can be done.”
What went wrong? A further investigation into “why”, with Bannister emphasises in his memoirs that he spent as much
an eye to the bankers’ mindsets, provides a much fuller view of time conditioning his mind as he did conditioning his body. He
the root causes: Is there anything about how they think and wrote, “the mental approach is all important … energy can be
feel, or what they believe about themselves and their jobs, that harnessed by the correct attitude of mind.”31
explains why they wouldn’t be spending more time with While perhaps inconvenient, when it comes to building
customers? Faced with a stalled improvement program, the capabilities required for change, we believe a balance should
bank in question proceeded down this line of inquiry. be struck between building technical skills and shifting
They quickly found that most of the bankers in question underlying mindsets (to enable the technical skills to be used to
simply found customer interactions uncomfortable and their fullest).
therefore actually preferred paperwork to interacting with
Inconvenient Truth #9: Good intentions aren’t enough
people (and, in turn, created reasons not to spend time with
It is well documented that after three months adults retain only
customers). This was driven by a combination of introvert
10 percent of what they have heard in lecture-based training
personalities, poor interpersonal skills and a feeling of
sessions (e.g., presentations, videos, demonstrations,
inferiority when dealing with customers who by and large have
discussions). When they learn by doing (e.g., role plays,
more money and education than they do. Furthermore,
simulations, case studies), 65 percent of the learning is retained.
supervisors (who had mostly been recruited from the banker
And when they practice what they have learnt in the workplace
ranks) were also insecure with their selling and interpersonal
for a number of weeks, almost all of the learning can be
skills, and therefore placed more emphasis on managing paper-
expected to be retained.32 Accordingly, effective skillbuilding
based activity, further exacerbating the problem. Finally, most
programs are replete with interactive simulations and role plays
bankers loathed to think of themselves as “sales people” – a
to ensure time spent in the training room is most effective.
notion they perceived as better suited to employees on used-car
Further, commitments are made by participants regarding what
lots than in bank branches. Efforts to create “more sales time”
they will “practice” back in the workplace (“My Monday
flew directly in the face of their vocational identity.
morning takeaway is …”) to embed the learnings. This is all
Armed with these root-cause insights, the bank’s change
well and good, except that come Monday morning, very few
program was enhanced to directly address the mindset
keep their commitments.
challenges as well as the process and tool barriers. Training for
Consider a social science experiment at a Princeton
bankers and supervisors was expanded to include elements
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theological seminary. Students were asked a series of questions belt certification in lean. The next forum provided much deeper
about their personality and level of religious commitment and technical system design skills and project and team leadership
then sent across campus. Along the way, they met a person training.
slumped over coughing and groaning and asking for medical The fieldwork that followed involved participants
assistance. Did self-proclaimed nice people help more? redesigning entire areas of the plant floor and overseeing a
Absolutely not. Neither did religious commitment correlate to portfolio of specific improvement teams – all aspects of which
who provided help. The only predictor of the seminarians’ had quantitative targets (both in terms of financial results, and
behavior was that half were made to think they were late for an people and project leadership in 360-degree evaluations).
appointment across campus, while the others believed they had Anyone achieving their fieldwork targets then became a black
plenty of time. Sixty-three percent with spare time helped, as belt in lean. The final forum built more advanced skills in
opposed to just 10 percent of those in a hurry. When short of shaping plant-wide improvement programs in the context of
time, even those with “religion as a quest” did not stop to pressing strategic issues, applying improvement concepts to
help.33 more complex operations, and coaching and mentoring others.
Given this aspect of human nature, it is unreasonable to Fieldwork again put these lessons into practice with quantitative
expect that most employees will genuinely practice new skills improvement goals attached, resulting in a set of “master black
and behaviors back in the workplace if nothing formal has been belts” emerging from the program.
done to lower the barriers to doing so. The time and energy
SHOW ME THE MONEY!
required to do something additional, or even to do something
So far, we have tested the incremental impact of applying these
in a new way, simply don’t exist in busy executives’ day-to-day
inconvenient truths in practice above and beyond more
schedules.
conventional approaches to influencing behavior in three
Ironically, this is particularly the case in the days following
longitudinal studies. Each study has employed control versus
training programs, when most managers are playing catch-up
experimental group methodologies (comparing impact with like
from their time away. This failure to formalise and create the
customer and employee demographics, ensuring minimal
space for practice back in the workplace dooms most training
distortions of trial over a one-year test period). In each of these
programs to deliver returns that are at best 65 percent of their
cases, the results have been profound.
potential.
In retail banking, for example, applying conventional
We advocate a number of enhancements to traditional
change management approaches in a salesforce stimulation
training approaches to “hardwire” day-to-day practice into
program achieved an 8 percent lift in profit per business banker
capability-building processes. First, training should not be a
and 7 percent per retail banker. While respectable, this was
one-off event.
below management aspirations of achieving a 10 percent lift in
Instead, a “field and forum” approach should be taken, in
both areas. Where inconvenient truths were acted on beyond
which classroom training is spread over a series of learning
conventional change management approaches, however, the
forums, and fieldwork is assigned in between. Second, we
program achieved a 19 percent lift in profit per business banker
suggest creating fieldwork assignments that link directly to the
and 12 percent per retail banker, far exceeding management’s
day jobs of participants, requiring them to put into practice new
expectations.34
mindsets and skills in ways that are “hardwired” into the things
In the call centres of a large telecommunications company,
for which they are accountable. These assignments should have
the results of a customer churn reduction program applying
quantifiable, outcome-based measures that indicate levels of
conventional change management approaches resulted in 35
competence gained, and certification that recognises and
percent churn reduction, falling short of management’s
rewards the skills attained.
aspiration of a 50 percent reduction. Acting on the
Consider one company’s approach to building lean
inconvenient truths, however, delivered 65 percent churn
manufacturing capabilities. The first forum offered a core of
reduction to the delight of management, employees and
basic skills and mindsets in performance improvement.
customers.
Fieldwork then followed, involving cost, quality and service
An insurance back office which had implemented lean
improvement targets over a three-month period.
operations improvements found that performance six months
Anyone delivering on these targets was awarded a green-
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after the “step change” was stagnant, not fulfilling the Organizations, Berrett-Koehler, 1997; Barret, Richard, Liberating the Corporate Soul: Building a Visionary
Organization, Elsevier, 1998; and Beck, Don and Cowan, Christopher, Spiral Dynamics: Mastering Values,
continuous improvement expectations of the program. Leadership, and Change, Blackwell Business, 1996.
11. Lottery tickets study as described in, Langer, Ellen J., “Chapter 16: The Illusion of Control” in Daniel Kahneman,
Revamping the program to leverage inconvenient truths, the Paul Slovic and Amos Tversky, eds., Judgment under Uncertainty: Heuristics and Biases, Cambridge University Press,
1982.
company has now posted more than two years of 5 percent 12. See Barclays’ Personal Financial Services CEO David Roberts, “Easy to Do Business With: The Way Ahead for
PFS,” April 2002, London, England: Barclays, Reg. # 1026167.
improvement (above and beyond the step change) in cost, 13. Hemp, Paul; Palmisano, Samuel J. and Stewart, Thomas A., “Leading Change When Business Is Good: The HBR
Interview – Samuel J. Palmisano,” Harvard Business Review, December 2004.
quality and service, exceeding the 3 percent continuous 14. Priestland, Andreas and Hanig, Robert, “Development of First-Level Leaders,” Harvard Business Review, June
2005.
improvement target built into the budget. 15. This juxtaposition of the deficit-based and constructionist-based approaches to change is taken directly from
Bernard J. Mohr and Jane Magruder Watkins, The Essentials of Appreciative Inquiry, Pegasus, 2002.
As mentioned above, we acknowledge that our research 16. University of Wisconsin research as cited in Bernard J. Mohr and Jane Magruder Watkins, The Essentials of
Appreciative Inquiry, Pegasus, 2002.
into the impact of applying approaches based on the 17. Risk-taking research cited in Terry Burnham and Jay Phelan, Mean Genes, Perseus, 2000.
18. For further evidence that humans are ‘irrational’ loss avoiders, see Kahneman, D. and A. Tversky, “Choices,
inconvenient truths about change management is still in its Values, and Frames,” American Psychologist 39, no. 4 (1984): 341-50.
19. Stock Investment,” Quarterly Journal of Economics, 2001. Ross, M. and F. Sicoly, “Egocentric Biases and
relatively early days by virtue of the fact that sustainable impact Availability and Attribution,” Journal of Personality and Social Psychology 37 (1979): pp 322-336. Svenson, O., “Are
We All Less Risky and More Skillful Than Our Fellow Drivers?” Acta Psychologica 47 (1981): pp 143-148.
can only be measured over a number of years. The longitudinal 20. McKinsey & Company Organization Practice, Building Exceptional Leadership Strength, 2005.
21. Note that in an interview with Time magazine published August 14, 2000, looking back on his decision, he told
examples mentioned above, however, give us confidence and writer Dan Goodgame: “I know I wasn’t in the greatest position with my swing at the [1997] Masters. But my timing
was great, so I got away with it. And I made almost every putt. You can have a wonderful week like that even when
motivation to broadly share the thinking above. your swing isn’t sound. But can you still contend in tournaments with that swing when your timing isn’t as good? Will
it hold up over a long period of time? The answer to those questions, with the swing I had, was ‘no’. And I wanted to
*** change that.” Rankings reported by Harig, B., “Wood ‘Uncomfortable’ with his Game,” ESPN.com, April 26, 2004.
22. Gladwell, Malcolm, The Tipping Point: How Little Things Can Make a Big Difference, Little Brown, 2000.
David Whyte once wrote, “Work, paradoxically, does not 23. Thompson, Clive, “Is the Tipping Point Toast?” Fast Company, February 2008.
24. Sinclair recalled this statement from his 1934 California gubernatorial campaign speeches in his memoir, I,
ask enough of us, yet exhausts the narrow part of us we bring to Candidate for Governor, and How I Got Licked, Farrar & Rinehart, 1935, p 109.
25. The dime in the photocopier study, Schwarz, Norbert, Stimmung als Information : Untersuchungen zum Einfluss
the door.”35 Our research and experience has led us to believe von Stimmungen auf die Bewertung des eigenen Lebens, Springer, 1987, pp 12–13.
26. The ‘mother-in-law’ example has been borrowed Ariely, Dan, Predictable Irrationality: The Hidden Forces that
that the impact of conventional change management thinking is Shape Our Decisions, Harper Collins, 2008, p. 72.
27. Dubner, Stephen J., Levitt, Steven D., Freakonomics: A Rogue Economist Explores the Hidden Side of Everything,
held back by exactly this paradox. More activity is undertaken, Doubleday, 2005, p. 19.
28. Ariely, Dan, Predictably Irrational: The Hidden Forces that Shape Our Decisions, Harper Collins, 2008: p. 71.
less energy is tapped into, and ultimately change impact is 29. The seminal ultimatum game study is by Guth Werner, Rolf Schmittberger and Bernd Schwarze, “An Experimental
Analysis of Ultimatum Bargaining,” Journal of Economic Behavior and Organization, December 1982, 3(4), pp 367–
disappointing. 88. Note that new ultimatum game research in the field of neuroeconomics shows us exactly what part of the brain
operates the bilateral anterior insula (not part of the prefrontal cortex) in rejecting small offers (As reported by Sanfey,
By acting on the inconvenient truths discussed above, A.G., K.K. Rilling, et al., “The Neural Bais of Economic Decision-Making in the Ultimatum Game,” Science 300
(2003): pp 1755-1758.
Whyte’s paradox is at least in part resolved by tapping into 30. Cameron, Lisa, “Raising the stakes in the ultimatum game: experimental evidence from Indonesia,” Economic
Inquiry 1999,
motivations that are uniquely human. In doing so, tremendous 37(1), pp 47–59; This assumption was also tested t by having U.S. participants play the game for $100. They found no
difference between play for $100 and play for $10 as reported in Hoffman, E., K. McCabe, et al., “On Expectations
individual and organisational energy for change is unleashed. and the Monetary Stakes in Ultimatum Games,” International Journal of Game Theory 25 (1996): pp 289-301
31. Bannister, Roger, The Four-Minute Mile, Guildford: The Lyons Press, 1981, p 210.
32. IBM research; Whitmore, “Coaching for Performance.”
End Notes 33. Darley, J. M. and Batson, C.D., “From Jerusalem to Jericho: A study of situational and dispositional variables in
helping behavior,” Journal of Personality and Social Psychology, 1973, 27(1), pp 100–108.
1. Kotter, John, “Leading Change: Why Transformation Efforts Fail”, Harvard Business Review, March–April 1995, p 1. 34. Experimental and control group clusters of bank branches were chosen that matched each other and the
2. For a list of about 100 highly recommended books on change management see Nickols, Fred, 2006. organizational average on the following dimensions: Performance: NPBT (growth and average over longest coherent
http://www.managementlogs.com/2006/04/change-management-books.html. As of March 7, 2008, Amazon had period available), economics of customers, average income per customer, industry composition in business banks
1,861 books listed under the official category “organizational change” and 8,604 books under the category of (split between service and manufacturing industry), and characteristics of centers; Staff: performance rating, tenure
“change.” (+2.5 years min.); and Size: footings per banker. During the study we ensured no distortions of trial occurred in terms
3. Examples include Harvard: “Managing Change”, Michigan: “Navigating Change”, MIT: “Planning and Managing of change of management, restructuring of operations, test of other initiatives in an incomplete subset of trial
and Change”, Duke: “Human Assets and Organizational Change”, Columbia: “Organizational Change”, IMD participants. Performance was compared over 1 year between three groups: 1) No intervention, 2) Salesforce
(Switzerland): “Managing Change”, London Business School (U.K.): “Managing Change”, INSEAD (France/Singapore): effectiveness improvement program with “rational” change management interventions, 3) Salesforce effectiveness
“Leadership & Change”, ESADE I (France): “Change Management”, Queens University (Canada): “Strategy improvement program with “rational” change management interventions. This approach is illustrative of all
Implementation & Change Management.” longitudinal studies mentioned.
4. Isern, Joseph and Pung, Caroline, “Organizing for successful change management: A McKinsey global survey”, The 35. Whyte, David, The Heart Aroused: Poetry and the Preservation of the Soul in Corporate America, Doubleday
McKinsey Quarterly, June 2006. Currency, 1996, pp. 22
5. In 2002, D. Miller reported that 70 percent of change programs fail in “Successful change leaders: what makes
them? What do they do that is different?”, Journal of Change Management, 2(4), pp 359–68. In 2005, M. Higgs and
D. Rowland reported that, “Only one in four or five change programs actually succeed” in “All Changes Great and
Small: Exploring Approaches to Change and its Leadership”, Journal of Change Management, 5(2), pp 121–51. Scott Keller (scott_keller@mckinsey.com) is a Partner in
6. Composite data from a number of sources that indicate that the reason change programs fail is due to employee
resistance or management behavior come from the following sources: ed. Michael Beer and Nitin Nohria, Breaking McKinsey & Company’s Chicago Office. He leads McKinsey’s
the Code of Change, Harvard Business School Press, 2000; Cameron, Kim S. and Quinn, Robert E., Diagnosing and
Changing Organizational Culture: Based on the Competing Values Framework, Addison-Wesley, 1999; Caldwell, Organizational Behavior Practice in the Americas and has
Bruce , “Missteps, Miscues: Business Re-engineering Failures Have Cost Corporations Billions, and Spending Is Still
on the Rise,” Information Week, June 20, 1994; “State of Re-engineering Report (North America and Europe),” CSC deep experience in counselling senior executives on
Index, 1994; Goss, Tracy, Tanner Pascale, Richard and Athos, Anthony G., “The Reinvention Roller Coaster: Risking
the Present for a Powerful Future,” Harvard Business Review, 71, 1998; John P. Kotter and James L. Heskett, Corporate organization performance and change effectiveness.
Culture and Performance, Free Press, 1992.
7. Price, Colin and Lawson, Emily, “The Psychology of Change Management,” The McKinsey Quarterly, 2003,
Number 2, Special Edition: Organization.
8. The leather seats and red pencil examples have been borrowed Ariely, Dan, Predictable Irrationality: The Hidden
Also from McKinsey & Company is Carolyn Aiken
Forces that Shape Our Decisions, Harper Collins, 2008, p. 20 and p. 218.
9. Behavioral economics and behavioral finance are closely related fields which apply scientific research on human
(carolyn_aiken@ mckinsey.com), is an Associate Principal in
and social cognitive and emotional biases to better understand economic decisions and how they affect market
prices, returns and the allocation of resources. Daniel Kahneman with Amos Tversky and others, established a
McKinsey’s Organization Practice based in the Toronto Office
cognitive basis for common human errors using heuristics and biases (Kahneman & Tversky, 1973, Kahneman, Slovic
& Tversky, 1982), and developed Prospect theory (Kahneman & Tversky, 1979). He was awarded the 2002 the Nobel
who has pioneered innovative approaches to CEO, top-team
Prize in Economics for his work in Prospect theory as a psychologically realistic alternative to expected utility theory.
10. See Zohar, Danah, Rewiring the Corporate Brain: Using the New Science to Rethink How We Structure and Lead
and organization-wide change effectiveness.
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The Power of Culture 3. Build a Case for Change and Engage Everyone in the
You missed the power of the culture – the way we do things Process of Change
around here – the all-powerful norms that drive the way people It is naive to want to change the culture “just because it’s a
in your organisation work and how they interact with each good thing to do”. If you want to achieve culture change it
other and your customers/clients. needs to be because it will help your organisation to realise its
Most of the time, people are not consciously aware of these potential and everyone to live the Values.
norms and whether or not they are helping or hindering their In order to create a desire for change, people need to
performance. believe that they will be better off after the change than they
Ask any group of long-serving staff what the norms are in are now and the effort in making the change is worth it.
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For mor
F moree infor
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order or to meet with your
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ocal Territory Manager,
Managerr, contact us on:
P 1300 788 855 F 1300 788 811
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temperature control to large spaces often requiring a and water feature top-ups are supplied from 100 per cent
combination of solutions,” Robin Mellon says. recycled water.
Despite the challenges, energy efficient HVAC systems “Orion Springfield is the first Australian project to
helped Mirvac achieve a 6 Star Green Star rating – Shopping incorporate variable air volume air handling systems in all its
Centre (PILOT) for the Orion Springfield Town Centre. retail tenancies,” Adrian explains. “Orion’s energy use in the
Orion Springfield is considered a pioneer of world’s best air conditioning of tenancies will save 67 per cent of the
practice in environmental design for a retail centre, with its energy from the reduced fan usage and 33 per cent from
Green Star rating representing world leadership. The project reduced cooling requirements.”
was the first in Australia to achieve a 6 Star Green Star rating The standard shopping centre tenancy air conditioning
for a retail centre. design features fixed air volume systems. These systems use
Orion Springfield’s total site area is 40 hectares, with Stage dampers to create air balance in the ductwork and balance
1 of the development of approximately 35,000m2 featuring two cooling loads. The use of dampers leads to increasing static
shopping malls set around a pedestrian-friendly main street, pressure in the air conditioning ducts and back-pressure on the
which leads to a town square. Just like a traditional town air handler supply fans.
centre, Orion is a place to do business, meet friends, enjoy a “Most regular shopping centres in Australia do not provide
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any air to the tenancies – they simply supply either cool water, time
or electricity, for tenants to install their own systems. This
traditional approach is quite energy inefficient, so Orion’s
solution is a great step forward,” Robin says.
The shopping centre’s common areas feature mixed mode
air conditioning in both the north and south malls.
“Depending upon the outside conditions, the air conditioning
will operate on one of the three modes. The building
management system provides the necessary decision-making
to automatically select the appropriate means of maintaining
space conditions in the malls,” Adrian explains, adding that
the malls are broken into four areas, with each of the four
areas being independently controlled.
In ‘Natural Ventilation’ mode the mall air conditioning is
completely shut down and ventilation is provided purely
through natural convection. When air conditioning is required
and ambient conditions are suitable, the air handling units are
capable of operating in 100 per cent fresh air mode to achieve
comfort levels. When outside air conditions are not favourable delivering your
and mechanical cooling is required, the use of carbon dioxide project
monitoring allows the reduction of outside air intake to successfully is
minimal levels to minimise energy use under these conditions. our business
Extensive use of natural ventilation ensures both large
reductions in energy use and improved indoor air quality.
The Orion Springfield Town Centre features a chilled water cost
system, comprising two high efficiency chillers piped in series.
The system operates at a high delta-T of 15 degrees entering
and 5 degrees leaving temperature. The higher delta-T system
reduces the required chilled water volume proportionally, in
turn reducing the pumping power required to deliver that
chilled water to the air handling system. The advanced design
of the chilled water system reduces the chilled water pumping
energy and cooling tower fan energy by over 60 per cent quality
compared to standard designs.
The result is not just an estimated 300 tonne reduction in
greenhouse gas emissions compared to similar sized normally concept
conditioned centres, but also a 62 per cent reduction in to
potable water consumption compared to business as usual completion
design.
The GBCA’s Robin Mellon says that Orion Springfield is a
clear example of how HVAC approaches can improve the
performance of high-performing buildings.
“Sustainable green buildings are today’s smart investment.
By carefully analysing, planning and executing your HVAC
upgrades, you can deliver big benefits to the environment —
and your bottom line,” Robin concludes.
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the database and the characteristics of each are compared. If Recent advances in voice authentication have addressed all
they match, identity is confirmed and the transaction can of these questions.
proceed. As voice authentication relies on “voiceprint” Studies by the National Centre for Biometric Studies at the
information (and not a particular password or phrase), an University of Canberra confirm research by the UK
imposter attempting to gain access to an account may say the Communications Electronic Security Group (the Information
correct password, but will be rejected as he or she will have Security division of the British Government Communications
the wrong voice quality. Headquarters) demonstrating that voice authentication
outperforms current fingerprint, hand print and face
Voice Authentication - Ubiquitous and Secure
recognition products. Tests by Edinburgh University’s Centre of
A key benefit of voice authentication is that it works over the
Communications Interface Research, also covered in the
telephone - the world’s most ubiquitous communications
University of Canberra study, showed voice authentication to
device found in almost every household and business
be 99.9% accurate, which is 1000 times better security than
worldwide. In other words, the infrastructure for the
PINs and passwords alone. The effectiveness of voice
widespread rollout of biometric voice authentication is already
authentication is further reinforced in the University of
in place, as one’s identity can be authenticated from anywhere
Canberra study for government call centre applications and
in the world simply by dialling a telephone number.
There is no need to invest in special sensors or scanners,
nor is there any need to invest in special authentication
software or data communications technology. More
importantly customers do not have to learn to operate new
equipment or systems. They simply use the telephone.
These factors all add up to an authentication solution that is
more cost effective, easier and quicker to implement, easier to
manage and faster to deploy than other security options. Voice
authentication also offers enhanced security. As the technology
is accessed by telephone, the authentication server can be
centrally located in highly secure facilities with no connection
to unsecured desktops, laptops and networks.
Hence, there is no opportunity for “hackers” to break into
the system, providing an extremely secure implementation for
identity management and authentication systems. When voice
authentication is deployed in mass market applications,
passwords and PINs become unnecessary, and call centre
agent intervention becomes obsolete. Removing call centre
agents from the identity verification process has the advantage
of closing off another avenue for identity theft to occur. An
additional benefit of this biometric deployment is that
automating a core call centre function for voice authentication Specialists in Aged Care
reduces call centre operation costs.
and Retirement Villages
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