On the street I meet 3 bricklayers

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On the street I meet 3 bricklayers I ask them
what are you doing? The first says I am laying
bricks. The second says I am building a wall. The
third says I am building a cathedral.
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BLAINE CALLARD MANAGING DIRECTOR HARVEY NORMAN
EUROPE d.o.o bcallard_at_harveynorman.si
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HARVEY NORMAN

• QUICK INTRODUCTION
• Founded 1972
• Market Capitalization of over 2.1 Billion EURO
• 300 Harvey Norman stores worldwide
• Turnover 3,25 billion EURO
• Number one retailer of furniture, electrical, and
  computer equipment in Australia and New Zealand.
• Property portfolio valued at over 940 Million
  Euro

GERRY HARVEY
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OUR BRANDS
Joyce Mayne
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• HARVEY NORMAN SLOVENIA
• LJUBLJANA
• RETAIL SQM 9214
• EMPLOYEES 104
• KOPER
• RETAIL SQM 5100
• EMPLOYEES 55
• GROUP TOTAL
• RETAIL SQM 14314
• EMPLOYEES 159
• PLUS PLANS FOR 3 NEW STORES 2009

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(No Transcript)
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OUR BUSINESS MIX ...
Electrical
Electrical
Furniture
Computers
Bedding
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GERRY HARVEY
CULTURE OF THE FOUNDER
CULTURE OF THE COMPANY

• Self-made millionaire
• Successful promoter
• Risk Taker
• Strong Interpersonal skills
• Unusual business style
• Open and accessible
• Business Genius problem solver

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WHO AM I ?

• Born in Australia 1972
• 14 Years with Harvey Norman
• Degree in Law and Arts (Psych)
• Marketing and problem solving are my areas of
  experience
• Helped with many broken businesses
• I am a plain talker no pie charts no research
  papers no theories - just brain food

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BUSINESS CANCER

• Unmotivated
• Unappreciated
• Unempowered
• Uninformed
• Fear everywhere
• Weak leadership
• Coming to work with their brains turned OFF

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BUSINESS IS CHANGING

• Markets are becoming ultra competitive
• Global competition shrinking margins
• Competitors are not sleeping
• Instant information age
• Shorter life cycles
• Less customer loyalty
• Bureaucracy is growing
• Shareholders demand growth

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INNOVATION IS THE KEY

• Drucker (1964) principle of abandonment
• Innovation is not...
• Its about PEOPLE
• Are your people innovating
• Customer Innovation
• Product Innovation
• Process innovation
• Strategic Innovation

CORRECT ENVIRONMENT CORRECT PEOPLE
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THE INNOVATION DEPARTMENT?

• INNOVATION IS FOR THE RD DEPARTMENT THIS IS AN
  INCORRECT AND DANGEROUS ASSUMPTION
• INNOVATION DOESNT NEED COMPLEX PROCEDURES OR
  EXPENSIVE CONSULTANTS?
• CAN YOU STRUCTURE INNOVATION?
• IT IS A CREATIVE ORGANIC PROCESS
• WHAT WOULD YOU HEAR IN YOUR COMPANY IF YOU PUT A
  MICROPHONE IN YOUR CAFE? MANY SOLUTIONS TO
  COMPANY PROBLEMS.
• EVERYONE IN A COMPANY CAN INNOVATE
• All you need is the correct soil, and innovation
  will grow

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IN YOUR COMPANY...A QUICK AUDIT...

• are many people unhappy at work?
• is management open to new, unusual, or crazy
  ideas?
• do top managers spend most of their time at their
  desk?
• can any employee speak to the boss?
• what happens to people who try something and
  fail?
• can people make decisions without permission?
• do most employees know your profit or sales
  results for the last 12 months?
• do people work only for money?

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PEOPLE ARE PEOPLE
IDEA ONE

• Isnt most work boring?
• Most people want to succeed and do well to be
  valued
• People are not machines
• People need PRAISE and RESPECT
• Ideas take time
• People want to be in winning teams
• People need leadership
• People give 100 when they want to

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BREAK LARGER BUSINESS INTO SMALLER PIECES
IDEA TWO

• Smaller teams can help
• Independent manager of each team THE LEADER
• Teams must be empowered
• People feel safer in small teams
• Intimacy with boss for idea sharing
• Run like a small business
• Eg. Skunkworks (Lockheed Martin)

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SHARE THE REWARDS
IDEA THREE

• Alignment of goals company and staff
• Share the profit
• Not just money recognition and respect
• Grow the pie, dont fight over the slices
• People will take ownership...
• Reward ideas not just profit

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RISK TOLERATING CULTURE GET A SECOND CHANCE...
IDEA FOUR

• Why do people who have the answers stay quiet?
• Remove the fear starts at the top
• Core to the culture
• Tolerate risk NOT incompetence
• People learn from mistakes
• Basic safety nets encourage INNOVATION
• Better to seek forgiveness than ask permission
• Rules can be guidelines

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ORGANIC NOT MECHANIZED
IDEA FIVE

• Does your company have too many procedure
  manuals?
• Central control, authority, defined tasks all
  create rigid and uncreative environments
• People assume things in writing are fact -
  dangerous
• Procedures stifle innovation they control
  freedom time
• Organic companies can adapt
• Share best practice ... Quickly
• Make sure you have FUN in your workplace

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TRANSPARENCY OF INFORMATION
IDEA SIX

• People must be INFORMED
• Trusted staff feel valued
• Micro Innovation at every level
• Information teaches
• Information allows self measurement
• Information helps CHANGE ACCEPTANCE
• Commercial awareness BIG PICTURE (Like the
  Bricklayer story)

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THE VALUE OF EXCELLENCE
IDEA SEVEN

• Measure performance
• Celebrate success
• Constant Improvement
• Talk about the competition create the TRIBE
• People seek Spectacular Success

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PROTECT THE CULTURE
IDEA EIGHT

• The most important job of TOP MANAGEMENT
• Culture is the key
• Talk about the values
• Open door management listening (HN)
• Promote from within
• Hierarchy or Status not so important
• F.I.G.O. (Fit In or Get Out)

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GET THE RIGHT PEOPLE
IDEA NINE

• Many traditional companies
• PUSH OUT
• UNUSUAL PEOPLE

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CHARACTERISTICS OF INNOVATORS?
RISK TAKERS
HIGH LEVEL SELF CONFIDENCE
VERY PRIVATE
WORK BETTER ALONE
STRONG COMMUNICATORS
PROBLEM SOLVERS
COMPETITIVE
CHALLENGED BY FAILURE
WANT SPECTACULAR SUCCESS
EASILY BORED
DRIVEN BY IDEAS
LIKE TO BE THE BOSS
AMBITIOUS
VERSATILE
CAN MULTI-TASK
NEED INFORMATION
TAKE OWNERSHIP
RULE BREAKERS
STRANGE
DIFFICULT TO WORK WITH
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GET THE RIGHT PEOPLE
IDEA NINE

• Tolerate variety
• Hire people who have travelled
• Positive people
• Playful people mental flexibility
• Background not experience
• Education is not everything

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SUMMARY OF IDEAS

• TREAT PEOPLE LIKE PEOPLE
• BREAK BUSINESS INTO SMALLER PIECES
• SHARE THE REWARDS
• TOLERATE RISK
• LESS PROCEDURE MANUALS
• TRANSPARENCY OF INFORMATION
• VALUE EXCELLENCE
• PROTECT THE CULTURE
• GET THE RIGHT PEOPLE

SOIL FOR INNOVATION
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The world is changing very fast. Big will not
beat small anymore. It will be the fast beating
the slow.Rupert Murdoch
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THANKYOU