From Dr Keith Howson, Former Dean of the Avondale Faculty of Business and IT

Each morning as I make my way from Peacock Lane to the Zapara School of Business I pass by the student parking lot.  Standing cheek by jowl are the latest in vehicular transport, a fully-fledged Hummer, a BMW, a new Lexus and just the other day I watched a student arrive in a Jaguar.

My humble Nissan Versa (S class which stands for "Simple") pales into insignificance next to my student's latest and best.  I wondered how they could afford to drive these.  Well I might concede that it may be Dad's car but still, how are these afforded?

One evening in front of the TV gives an indication.

Most adverts from the motor car industry feature lease deals not outright sales.  So, for a small car like a Fiat500e the upfront payment is about $1000 with a monthly instalment spread over 3 years of $199 (actually it is a bit higher because of tax).  The bigger upmarket cars like a BMW might call for an upfront payment of $2000 or $3000 with monthly instalments of $350. The devil might be in the small print so caveat emptor.

For a foreigner like me getting the vehicle insured presents another whole range of issues.  I might reserve that for another postcard from America.

The following upcoming ABS events featuring special guest presenters are available for any students to attend:

Dr Keith Howson is a former Dean of the Avondale College Faculty of Business, and is currently working at La Sierra University in California. He is an avid reader of the Avondale Business School blogs and Facebook page, and has sent us a snippet of what life is like studying business in the US:

This is now my second term of teaching here at La Sierra University and in this time I have come to see up close and personal the differences in accounting education between Australia and the United States:

• In the teaching of accounting, it is GAAP (Generally Accepted Accounting Principles) which still dominate, rather than IFRS (International Financial Reporting Standards) which are relegated to an Appendix at the end of a textbook. Here at LaSU a special class exists just to study IFRS.
• Another key difference is how a student can take the CPA examination relatively quickly at the end of their university study whereas Australian students take them in sequence as laid out by the professional bodies as a post-graduate qualification.
• Many universities offer special CPA exam preparation classes which students can take while still in university.
• A requirement for our class in Ethics is that students must pass the Californian Licence examination in ethics.

If you would like to see the working conditions Keith has to endure, check out this site, and look for the number one spot.

Thanks Keith for your ongoing interest and support of ABS.

Who is the happiest person you know? According to the latest NAB Wellbeing Index it is retired women who are widowed and living in a South Australian or Northern Territory regional city!

This is from the Q4 2013 NAB Wellbeing Index which surveys the Australian population to gauge their wellbeing, happiness and anxiety.

Why is this information useful? Well it helps to identify who in our communities are vulnerable and what is worrying them. This enables organisations like the Seventh-day Adventist Church to ensure they are responding to the real needs in theircommunities.

Other points of interest from the index include:

• While SA/NT have the highest levels of wellbeing, Tasmania has the lowest;
• Regional cites are where people enjoy the highest levels of wellbeing, followed by rural towns, and lastly capital cities;
• Those earning $100k plus have the highest levels of wellbeing;
• While women have enjoyed the highest levels of wellbeing, the latest survey also shows their anxiety levels are increasing significantly;
• Similarly for retirees, who typically enjoy higher levels of wellbeing, their anxiety levels are also on the rise.

The most important factors on positive wellbeing are personal relationships, our home, and personal safety. Whereas the factors that most detract from wellbeing are financial security and physical health.

Take the time to review this data, read the reports, and then reflect on whether your organisation has a role to fulfil in increasing the wellbeing of Australians.

Reality is far from the perceptions of many when it comes to the governance of NFP Boards, the latest Directors Social Impact Study (DSIS) has found. (Click here to access the full report) The DSIS, the largest study of its kind in Australia, is conducted by Curtain University on behalf of Australian Institute of Company Directors, and has been run for a number of years.

The 2013 DSIS has a number of key findings, four of which are:

1. NFP Directors are skilled, experienced, and improving:

• On average, in 2013, an NFP director spent 20 hours per month on a single NFP directorship, which is the equivalent of two and a half days. In 2012, it was 16 hours per month.
• And all this is while 80% of NFP directors are unpaid for their work. However this too is changing, as it was 89% in 2012. Interestingly for NFP’s with a turnover in excess of $20m, 40% of directors are paid.

2. NFP governance is effective and appropriate:

• There is no evidence to suggest that the governance of NFP’s are inferior to that of For-profit entities, despite what seems to be a perception to the contrary. The study consistently found that directors who sat on boards of both types of entities confirmed that the NFP’s were as well governed as For Profits.
• A significant factor in this would be that 76% of NFP boards had undertaken some form of board professional development in the last 12 months, whether it was an internal evaluation, or external director training.

3. Financial strength and income diversity are top priorities for NFP boards:

• Overwhelming, the focus in 2014 for NFP’s will be to reduce reliance on government funding and diversify their income base. The mood of directors indicates that government funding is considered volatile and should not be relied upon.

 4. Directors are calling on Governments to reduce red tape:

• A very strong message in the DSIS2013 is the call from directors for all forms of government to reduce the administrative burden on NFP’s, including the harmonisation of legislation across jurisdictions.

As you consider your board, and the directors on it, use the DSIS2013 as a benchmark to ask yourself some hard questions:

• Are our directors investing time in the process, or just turning up to ‘have a say’?
• Are we rewarding our directors for their investment of time by providing opportunities for meaningful contributions in significant issues?
• Do we have a plan for intentional and targeted board professional development in the next year?
• What initiatives do we have in place to minimise the risks to our entity if our major income source dried up?
• Can you add your voice to the calls for government to reduce the red tape for NFP’s?, or will we coast on the efforts of others?

And remember, the Avondale Business School can assist your board to become a high performing board – find out how by contacting Warrick Long at the Avondale Business School.

E: [email protected]

P: 02 4980 2168

Raising funds is at the core of survival for most Not-For-Profit (NFP) entities, and keeping pace with the latest fundraising techniques, methods, attitudes and data can exhaust NFP leaders. If only we could automate the process so that it doesn’t absorb every waking moment of our lives.

Well, the latest trend in fundraising does just that. ‘Crowdfunding’ (or ‘Crowdsourcing’ in some forums). are web platforms that provide a vehicle for people and organisations to raise funds for all manner of commercial and social ventures. Part of the premise is drawing small amounts of funds from large numbers of people via the web. Crowdfunding has already proven successful and now the NFP community is leveraging the technology as well.

The latest site into the arena is Chuffed, (www.chuffed.org ) an Australian entity launched in March of 2013 to assist the NFP community in raising much-needed funds. The blurb on the chuffed web site says:

‘Chuffed is Australia’s first non-profit crowdfunding service dedicated to not-for-profit and social enterprise projects. Its mission is to connect generous Australians with awesome social organisations via compelling, engaging online fundraising campaigns. It is proudly supported by its Founding Partner, the Telstra Foundation.’

The process is very simple - .you create a free account with Chuffed, follow the prompts to create your campaign, submit it in draft form to Chuffed for some free advice on how to maximise your campaign, and then publish on the net and wait for the donations to role in.

Chuffed (or indeed Crowdfunding as a concept) may not be suitable for every NFP in every situation, but it is certainly one more tool available to assist in the critical matter of fundraising, and may be worth taking a look at.

Want to find out how the Avondale Business School can help your organisation?, simply contact Warrick Long at the Avondale Business School.

E: [email protected]

P: 02 4980 2168

As a pause occurs in the media frenzy surrounding enquiries into the activities of the Essendon Football Club (EFC), we have an opportunity to reflect on what lessons can be learned.

By way of refresher, during 2013 the medical practices of the EFC were investigated in light of allegations some were not in the spirit of the game (amongst other things). Penalties were imposed, including the EFC not being permitted to play in the 2013 finals series of the AFL, and the coach being suspended for 12 months.

The EFC commissioned an internal review into the governance practices of the club led, led by Dr Ziggy Switkowski, who reported his findings on 6^th May 2013. The full report of Dr Switkowski can be found here:

http://www.essendonfc.com.au/news/2013-05-06/dr-ziggy-switskowski-report

It is in these findings that we glean some valuable lessons for all organisations:

• It is the CEO who is ultimately accountable for the happenings of the organisation. All aspects of the organisation must ultimately work through the CEO.(Recommendation 5)
• Whenever an organisation engages in change management, it is even more important to ensure accountabilities, reporting lines, communications channels etc. are clear and functional at all times. (Recommendation 7)
• Boards must especially ensure any bad news affecting the organisation. Is reaching them quickly. As the report says “Boards should be asking [management] the question ‘what’s keeping you up at night?’ and follow up and monitor action on concerns.” (Recommendation 8)

The report contains a number of other relevant and timely lessons from the report for the EFC board, leaders, and management, many of which are just as valuable for other organisations to consider in light of their own context.

I you would like more information as to how the Avondale Business School can help your organisation review its governance and leadership, simply contact Warrick Long at the Avondale Business School.

E: [email protected]

P: 02 4980 2168

A recent article in Human Capital Online features the results of a survey about leaders in Australia and New Zealand. See the full article here: http://www.hcamag.com/hr-news/australian-leaders-fearful-and-disconnected-181327.aspx 

The article cites the Leadership Pulse Survey by the Forum Corporation and the following startling facts:

• 78% of leaders said they often or always acknowledge their own mistakes;
• However, only 18.6% of employees said their leaders acknowledge their mistakes!

There are a number of other very interesting (and at times troubling) revelations in the survey about the disconnect between what leaders say they do, and what their emplyess know they do. The article highlights the issue of trust as being the core of this.

Trust is essential in the employee/leader relationship, and even more so in the Christian leadership context.

A challenge for Christian leaders today is to ensure we may have said about us that we "...shephereded them according to the integrity of our heart, and guided them by the skillfulness of our hands" Pslams 78:72

The Avondale Business School can help you and your team develop leadership skills – find out how by contacting Warrick Long at the Avondale Business School.

E: [email protected]

P: 02 4980 2168

Amy Sonter, graduating in 2013 with both Bachelor of Business and Bachelor of Arts degrees, earned the coveted Signs Publishing Graduate Exhibition Excellence Award 2013 for her range of greeting cards, stationery and paper.

Not just an accomplished graphic artist, Amy is also putting her business degree to good use and is in the process of setting up her own graphic design business, Rasberry Avenue, to design, produce and distribute her work for clients.

Congratulations Amy on your achievements and award. The Avondale Business School wishes you every success, and is very proud of you.

The latest NAB Charitable Giving Index has been released giving a picture of charitable giving in Australia.

The full report can be found here:

http://business.nab.com.au/nab-charitable-giving-index-indepth-report-august-2013-4984/

Interesting points include:

• A general upturn in Charitable giving across Australia;
• The average level of annual donations is around $312 per donor;
• Not surprisingly, older donors are the most generous both in dollar terms and as a percentage of income.

So what are the implications for Charities and groups like the Seventh-day Adventist Church in Australia? 

• Is giving to your entity growing at similar rates? Better? Worse?  - Why?
• What areas of giving are most attractive to each respective age group of your members?
• Are you communicating to your donors in ways they relate to and can easily see what happens to their contributions?

As you consider this report in relation to your entity, remember that the Avondale Business School can help you achieve the next level of success.

For assistance or additional information contact Warrick Long at the Avondale Business School.

E: [email protected]

P: 02 4980 2168