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BLAINE CALLARD MANAGING DIRECTOR HARVEY NORMAN EUROPE d.o.o bcallard@harveynorman.si

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. . BLAINE CALLARD MANAGING DIRECTOR HARVEY NORMAN EUROPE d.o.o bcallard@harveynorman.si. HARVEY NORMAN.

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BLAINE CALLARD MANAGING DIRECTOR HARVEY NORMAN EUROPE d.o.o bcallard@harveynorman.si

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  1. 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.

  2. BLAINE CALLARD MANAGING DIRECTOR HARVEY NORMAN EUROPE d.o.o bcallard@harveynorman.si

  3. 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

  4. OUR BRANDS Joyce Mayne

  5. HARVEY NORMAN SLOVENIA • LJUBLJANA RETAIL SQM 9214 EMPLOYEES 104 • KOPER RETAIL SQM 5100 EMPLOYEES 55 • GROUP TOTAL RETAIL SQM14314 EMPLOYEES 159 PLUS PLANS FOR 3 NEW STORES 2009

  6. OUR BUSINESS MIX ... Electrical Electrical Furniture Computers Bedding

  7. 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

  8. 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

  9. BUSINESS CANCER Unmotivated Unappreciated Unempowered Uninformed Fear everywhere Weak leadership Coming to work with their brains turned OFF

  10. 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

  11. INNOVATION IS THE KEY • Drucker (1964)– principle of abandonment • Innovation is not... • It’s about PEOPLE • Are your people innovating • Customer Innovation • Product Innovation • Process innovation • Strategic Innovation CORRECT ENVIRONMENT + CORRECT PEOPLE

  12. THE INNOVATION DEPARTMENT? • “INNOVATION IS FOR THE R&D DEPARTMENT” THIS IS AN INCORRECT AND DANGEROUS ASSUMPTION • INNOVATION DOESN’T 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

  13. 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?

  14. PEOPLE ARE PEOPLE IDEA ONE • “Isn’t 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

  15. BREAK LARGER BUSINESS INTO SMALLER PIECES IDEA TWO • Smaller teams can help • Independent manager of each team = THE LEADER • Teamsmust be empowered • People feel safer in small teams • Intimacy with boss for idea sharing • Run like a small business • Eg. Skunkworks (Lockheed Martin)

  16. SHARE THE REWARDS IDEA THREE • Alignment of goals – company and staff • Share the profit • Not just money – recognition and respect • Grow the pie, don’t fight over the slices • People will take ownership... • Reward ideas not just profit

  17. 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”

  18. 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

  19. 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)

  20. THE VALUE OF EXCELLENCE IDEA SEVEN • Measure performance • Celebrate success • Constant Improvement • Talk about the competition – create the TRIBE • People seek Spectacular Success

  21. CULTURE 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)

  22. GET THE RIGHT PEOPLE IDEA NINE Many traditional companies PUSH OUT UNUSUAL PEOPLE

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

  24. 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

  25. 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

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

  27. THANKYOU

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