What Do I do Now?

On wind down to Christmas. Contract expires on Friday so am facing the New Year with trepidation given the gloomy economic news. Just had call from head hunter for a job I applied for so have interview. What a change.

Have applied for 8 jobs in past 6 weeks. Have had 1 interview, 3 email rejections and 4 no replies. We are talking senior positions here. I never treated applicants to even the most junior positions in any of my employers in this manner. This treatment is entirely from HR & Recruitment agencies. My earlier comments re them have been continually reinforced.

Have just seen the government's redundancy law changes. My permanent job disappeared in redundancy in July this year and my 3 month contract started in October. So, depending on when the starting point is, I may not be able to demonstrate 6 months continual employment. The savings rule me out anyway as I have considerably more than allowed.

Bludging Taxi Drivers

How come the tax drivers expect the government to pay for the equipment that any idiot would regard as the absolute minimum. We don't see the government paying for a steering wheel, so why should they consider loans for cameras or other protection gear? If you are in any business in NZ you are required under H&S legislation to 'take all practicable means' to protect your workers. The government does not provide loans if it costs you money for equipment or safety modifications. What makes taxis special?

Come on John, you are a nominally right-wing, stand on your own feet, no nanny state party. You shouldn't even be considering this.

The Minister and the Private Secretary - Lesson #2

Was consulting to a SOE who were undertaking a massive project that I was managing. We had to get the Minister of SOEs on side and keep him there at all times. One of our opponents was a commercial firm that would lose out heavily if we succeeded.

In to see the Minister, with his private secretary. Minister agrees with our proposal. We walk back to the office, a walk of 10 minutes, and on arriving receive phone call from the private secretary that minister has done a 180 and has changed his mind. Schedule another meeting and return following day. Minister again agrees with us and again we return to office to get same phone call as day before. We make enquiries and find that each time we visited Minister, the private secretary has pre-warned the opponents and books them an appointment straight after ours.

The Minister could not hold an opinion in his own right and reversed his stance so many times in the same manner that we called him the 'Roundabout'. The Minister was only interested in ass covering and never developed a framework against which he could make decisions. A shallow man despite appearances to the contrary. In the end, we had to use some influence to get around him to the Cabinet and plead our case. The Cabinet backed us and away we went.

The private secretary was so busy playing both sides of the street that he never stopped to think what was the best thing for NZ. He only worried about what was best for his minister and himself. Gotta love those public servants

Dealing with Treasury #1

I was trying to change a piece of tax law which I, my very influential employers and even more influential directors thought was unnecessarily driving up financing costs to NZ companies. With my CEO's support and through directors' networks I was put in touch with a very senior Treasury manager who was responsible for tax policy. I also contacted very senior IRD people I knew.

The IRD thought my proposal could work and agreed in principal with the idea, despite it meaning a loss of tax revenue. The Treasury mandarin decided he did not like the idea. The IRD, my directors and CEO and I piled up the evidence and knocked over every objection Mr Treasury mounted. Finally, he stated, "The Minister of Finance is opposed to the idea." Unfortunately for him, we had direct input to the Minister and so we asked the question. The Minister loved the idea and ordered the law to be changed.

The point is that Mr Treasury lied. Had we not had the means to go around him, the idea would never have seen the light of day. It has now been a feature of NZ tax law for many years.

This is unfortunately typical of what I have experienced, the dead hand of the public service.

Never Under-estimate the Stupidity of the NZ Public

Ask most kiwis for their opinion of public servants, either in central or local government, and they will mostly have very negative views of their abilities, activities and remuneration etc. As an ex-Wellingtonian, I have returned to visit family and friends in the past 5 years on many occasions. I have been stunned at the growth in the public service and the new premises they are occupying.

Then you ask kiwis about privatising SOEs such as Solid Energy, the electricity industry, ACC, TVNZ etc and all hell breaks lose. No, can't have that. Who do they think runs and actually controls those government-owned enterprises - yes, those reviled public servants. You might find business people running SOEs but they report to lickspittles in CCMAU in the MED and to ministers and to Treasury.

Decisions are made to cover ministers' asses not to take the action that will provide the best outcome for the SOE or the public of New Zealand. I think I might blog some more on some of my experiences in this field.

Labour Shit on a New Government Again

Is this deja vu or what? I remember well the pile of shit Labour left the incoming National government in 1999 with the BNZ. Here we go again, ACC seriously under funded by $6 billion, Housing Corp maintenance $2 billion and various rorts with funding for previous electoral promises. Cullen's reputation as a fiscal manager is quickly unravelling as the new Government get their hands on the books. Makes you wonder how the Treasury and public servants could keep quiet but of course we know why. The evil bastards crucified public servants for any political advantage or to transfer the blame so whistle blowers knew it would be open season on them.

Where to Invest?

Isn't the financial news gloomy? I look after the family investments for my aged mother and am faced with plunging interest rates for her fixed rate investments while there is nothing I can safely invest in for some growth. I'm personally in the same position also. It looks like cash is king and that I should cash up everything. Shame is that if I could afford to put some dosh away for some years, there are probably some very good bargains to be had on the stock exchange that will do very nicely once things turn. As my contract is about to finish, I cannot tie up cash as I suspect jobs and new contracts are going to be hard to find next year. The other problem is that the financial markets may not turn soon enough for me (and certainly not for mum). This could be a long wait.

What is Wrong with Our Navy Procurement?

We have this continuing procurement debacle with the NZ Navy which doesn't look like it could buy a dinghy without screwing up.

We have had the debacle of the Charles Chuckum, then Te Mana, which had to have a turbine replaced within a year or so of delivery, then the Canterbury which needs $20M in modifications and now there are all these other boats, undelivered, sent back, BUT LARGELY PAID FOR ALREADY. While I love putting the boot into the previous government, I wonder if there is something rotten in the Navy itself.

There should be a royal bum-kicking going on at the top and then at the procurement level. Many years ago, my father working for the State Services Commission, undertook time and motion and systems studies of the naval stores at Devonport. It seems to me that something similar is needed now and urgently. Perhaps there might be some work for me there in the New Year?

You Lie!

As someone in their 50's I have been made redundant and had one company collapse under me. I laugh myself silly when reading articles in the papers about how companies want 'mature' workers for all their perceived experience, stability and work ethic. To quote Gordon Ramsay, "Well f.... me."

I wish I had kept count of the rejections I've had from applying for advertised jobs. I think I may be up for inclusion in the Guinness Book of World Records. That of course assumes the recruitment companies are polite enough to even respond.

I wonder at the stupidity of recruitment agencies. If an agency places me then I use them for any roles I need to fill. Treat me like shit and I will never use you in my lifetime. Problem is that most companies seem to be the same. I think it is their commission structure which focuses them on putting bums on seats rather than building long term relationships. It is like the problem with US companies and quarterly reporting to the stock exchanges - it forces focus on the short term.

The recruitment companies all talk about building relationships. As a CFO I was constantly pestered by recruiters I had used and by new ones trying to break in. The only followup I've come across as a candidate is from Robert Walters. When I am down and concerned where my next pay cheque is coming from, that followup call from them is a great lift. Guess who will get my business when I get a permanent position. Even good friends and acquaintances in the recruitment game don't keep in touch. I'm starting to take it personally.

Silver Spoons

Have just finished the book Battle of the Titans, [Bruce Wallace, Penguin Books 2001] which describes the rise and fall of Fletcher Challenge. The book blames Hugh Fletcher for the breakup of the business empire, stating his focus on growth rather than on operational efficiency lead to disaster. The last paragraph states-

This was an organisation that just made more mistakes than it could afford.
In the real world of commerce it was punished accordingly.

Hugh Fletcher of course wrecked the conglomerate that had been started by his grandfather. He was the classic silver spooner, born to wealth, given the best education money could buy, groomed for the top job at FCL and given the helm at an early age. Having said that, he did seem to have the intellectual grunt as well, having won a Harkness Scholarship and doing post-grad at Stanford where he was second in his class. But his name meant he survived longer with appalling results than any other CEO would have. Look at David Kirk at Fairfax (another FCL old boy); he got dumped after about 6 months of adverse share prices.

I was reminded of the old saying, the first generation accumulates, the second consolidates and the third dissipates. Boy, did Hughie follow that old saw. And now he is Vice Chancellor of Auckland University?

Anyway, reminded me of the 3 US car companies. Born with metaphorical silver spoons. They invented the production systems, operate in their home market, biggest and richest market in the world, distribution networks into every corner, chauvinistic customers and still they got beaten by asians having to transport cars in from overseas. Why would you back these 'hughies' and bail them out?

The Old Dog Still Knows a Few Tricks

In my 50's and contracting into the finance department of a very large IT company as my employer fell over this year. Was concerned that my IT skills might be a bit ancient compared with the kiddies I am working with (average age early 30's and lots of high powered finance degrees). Have spent 2 months teaching them how to use Excel to its fullest, have taken over their presentations as I am years ahead in Powerpoint but most astonishingly, to keep costs down, none of them have MS Access on their PCs. Many of the tasks they need to do for monthly and ad hoc reports would be a doddle using Access to sort and manipulate the data but none of them know how to use it, nor are they allowed to use it. Amazing. And as for MS Word, they are capable of no more than basic letters and reports. Me, on the other hand, I have had years of practice and have often had to teach my PAs how to use Word to do things like mail merge and such like. As for MS Project, again they are expected to develop and monitor projects but do not have this programme on their PCs.

I am feeling rather smug that the self-taught 'oldie' is more than able to hold his own. Am also surprised that all the useful software is not made available to the finance people when I expected an IT company to be gung-ho on all things IT.

Short Term Memories

One of the features of the current financial crisis, and everyone before that I have seen, is that the latest whizz kids will have been in school when the last one happened. Talk to the banks and investment/merchant banks and private equity boys and you'll note that none of them remember the lessons of 1987 because none of them were working then. Anyone who might remember has long since been made redundant or made to take early retirement in our mad dash to worship youth.

One close friend who worked in banking was told by his manager in the mid 90's that he intended to get everyone over 40 out of his division. My friend was 42 at the time so put his head down and said nothing. He survived but his boss has long gone!

The next big surge in will come in about 20 years time as the current management teams are replaced by the kiddies at school. Hope I can survive financially that long so I can take advantage of the inevitable bull market and am still smart enough to see the warning signs before the inevitable crash occurs.

Here We Go Again!

I remember when the 1987 crash hit. I was working for a Wellington-based finance company/merchant bank. We pestered our credit department head for years about letting us do property deals but he would wag his ancient, grey head and tell us "More fortunes have been lost in property lending than any other game in town." He was ex-BNZ and at 60-ish had seen it all. Shame the BNZ had forgotten all he had tried to teach them. We survived because we had very little exposure to property lending - thanks to him.

Shame I didn't remember his advice in time as I worked in the property field again (this time in development) right up until the company went into liquidation in July this year. Regardless of the quality of our developments, the finance companies all went tits up from about August 2007 and lending similarly dried up. No money to finish despite pre-sales; no credit from anyone. What a mess us and the finance boys have got ourselves into again.

The writing was on the wall years ago. In 1994 I was told by a business acquaintance who headed one of the big investment houses in Asia that he was getting out because he didn't understand the derivatives they were all busy selling and no one anywhere had a good idea of the overall liability position of the finance sector anymore. He warned it would all turn to mush one day.

Shit, I'm really smart with hindsight. Wish I had remembered these warnings earlier.