Let’s get in the ‘zone’

By Christopher J Tipler

The summer holidays give us the pleasure of watching elite sports men and women in cricket and in tennis. We marvel at their ability to perform seemingly impossible feats (how could Michael Clarke for hours, with apparent ease, dispatch rocks being hurled at him at more than 140km per hour!). We speak of such people being ‘in the zone’, by which we mean an alignment of body and mind that produces an easy, graceful power. Mastery in any field, of course, does not come cheaply; the ‘zone’ is a state that normally reflects years of determined practice.

In our business lives, we occasionally witness masterful individuals but we cannot rely on them for consistent success. For this, we need our group – our company, our division, our team – to be masterful. So we ask, ‘how is it possible for our group to demonstrate consistent mastery? What would we call this, what would it look like, how would we do it? Human Resource experts would argue that leadership and culture is the key. They name the wrong gods. Strategy is the key. Read full article

Myer and David Jones

Dinosaurs or dynamos?
By Christopher J Tipler

There is a remarkable air of unreality currently surrounding Myer and David Jones. Both businesses are underperforming. Both blame weak retail trading conditions but insist their business models and strategies for the future are sound.  The share market is very sceptical. Both stocks are trading at, or close to, a five-year low with dividend yields of 11%. Some retail insiders see little future for department stores; to them, both companies are dinosaurs. The share analysts are divided in their views – some have Myer as a ‘hold’, and some as a ‘buy’. Some see David Jones as a ‘hold’ or ‘buy’, others as a ‘sell’. So much for the experts.  

So, how do we make sense of these two iconic retailers, both of which are well over 100 years old? Are they dinosaurs, or potential dynamos? Read full article

Stress-testing our big banks

Are they invincible or vulnerable?
By Christopher J Tipler

Over the last thirty years, the big four Australian banks have dominated the business scene. Highly visible because of their branch networks, and consistently profitable, they have also been viewed as an essential component of any blue chip investment portfolio. Today they represent around 20% of the value of the Australian equities market so they are almost a required holding for institutional investors.

Yet, we now hold bank shares somewhat nervously. The conditions that have underpinned bank performance – economic growth and the steady appreciation in asset values (particularly house prices) - have given way to deep-seated pessimism. Now we look more carefully at the composition of bank assets, and at their borrowings, and we question whether they are blue-chip investments after all. Read full article

A Christmas reflection

By Christopher J Tipler

Christmas is almost upon us again. In the frantic rush to clear the decks for a holiday, buy the presents and arrange the family lunch, we have little time to think about the meaning of the celebration for us personally, let alone for our organisation. Something to do with a guy from Nazareth. Yet, if we are willing to pause for a few moments, and reflect, there are some powerful messages that can help us to be better managers.

I was raised an Anglican, although I have not been a churchgoer for many years. I have, however, followed an interest in all the religious and spiritual traditions and I have developed an enormous respect for the teachings of Jesus of Nazareth. He said many profound and helpful things but the one that stands out for me is his constant reference to the power of fear and the need, not only to be aware of it, but to actively counter it. ‘Do not be afraid’ was a perennial theme of his teaching. Jesus understood how corrosive and enervating fear could be, for individuals but also for groups.

As a management advisor I have worked with scores of businesses over many years. I have sat through countless meetings, had discussions with hundreds of executives and directors, and facilitated meetings with thousands of staff. After a while, you become pretty good at sensing the forces that are at work. In my experience, no force in business is as powerful or as pervasive as fear. Read full article