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On Terms & Conditions – Watch Out!!

April 9th, 2014

During a discussion with one of our customers yesterday, they broached the subject of the Terms & Conditions one of their suppliers imposed and of which they had not been aware.

The issue arose because they had approached another supplier in the same industry with a view to appointing them.  The potential new supplier advised them that there is a “secret clause” in the agreement between our customer and their current supplier and that no-one knew about it.

We then proceeded to review the Agreement and Terms & Conditions attached to it.  You know the Terms and Conditions that are in miniscule type on the back of the various documents from the suppliers that you generally get?

On review of these we found the following clauses (and I have not detailed the company – yet):

Term – subject to [where the supplier terminates on 30 days notice], the Agreement is for a term from Commencement until Expiry, or, if unspecified [which it always is], for a term of 5 years from execution. [Supplier] will renew the term for a further 60 months on the same conditions (including automatic renewal) (at [supplier's] option), unless by written notice: (i) Customer advises [supplier] not more than 120 days but not less than 60 days before the end of the Term, that it does not intend to renew the Agreement…

Services – During the term, [supplier] will provide Services in accordance with this Agreement…and  Customer agrees to obtain all [services] exclusively from [supplier] except to the extent that a pre existing service agreement is in place. The Customer agrees that on the expiry of the pre existing agreement it will use [supplier] exclusively.

Now, I don’t know about you, but I would have thought that a supply agreement that effectively signs you up to rolling five year engagements with termination only possible in a three month window in a very specified time frame should be discussed with the supplier. In this instance, our customer assures us it wasn’t.

Does this constitute unconscionable conduct? Would an ethical and moral business seek to engage and lock in customers without disclosing this requirement and obligation?

I know our customer is furious. They are going to fight this as they were never made aware of it on commencement and would not have engaged with the supplier on these terms.

My question above however remains: Would an ethical business operate under processes like this?

If you would like to know who the supplier is, send me an email…

On Changing Rules for Not-For-Profits – Doctors Beware!

March 17th, 2014

surgeryThe Federal Government has recently released the final report of the Not-For-Profit (NFP) Working Group relating to the tax concesssions the NFP sector is currently able to access.

It is pretty dry reading and  there is no endorsement by the government of any of the recommendations from the working group.  This then provides little in the way of guidance for us as advisors, however, we need to be aware of the specific recommendations that are in the report as released as they have the potential to change the NFP tax environment markedly.

The major items we see as impacting on the sector include:

  • removal of the Fringe Benefit Tax concessions;
  • removal of uncapped meals and entertainment facility leasing concessions (this will impact public hospitals and medical staff salary packaging);
  • removal of “serial capping” where people may work across a number of concessioned employers (eg: medical staff working at two or more hospitals); and
  • removal of “mutuality principle” where receipts from members (eg: Clubs) are not assessable for income tax purposes.

There are a number of other recommendations in the report, however these appear to be the most impactful and possibly controversial.  For instance, if the serial capping of FBT-concessioned benefits through public hospitals is removed, is this going to make it more “challenging” for hospitals to recruit and retain medical staff or are they going to have to pay more for their services?

As always, it is a matter of “watch this space”.  Where the government goes with these recommendations is anyone’s guess, however, the recommendations as they currently stand are a significant change to the current status quo.medical

On Bringing it all Together

March 5th, 2014

SynergyHow wonderful is it to be able to access the best thinkers in the world and have them contribute to your world?

In recent months, I have been very privileged to read and view some highly intelligent people discuss a wide range of subject matters revolving around leadership and management.

Why did I need to do this?  Because I have a hell of a lot to learn about both of these areas.

So, the journey I have taken has been somewhat long, circuitous and arduous, but I have learned a great deal.

This post could end up being a book on its own and I don’t want to bore you (if anyone is reading this) witless – you’d be far better off going and watching some Greg Kyte videos - he is far smarter and funnier than I will ever be!  Either that or have a read through David Thorne’s work – one of the funniest blokes on the planet.

I will attempt to bring all this reading and viewing down into some useful points that others may gain some value from.  Here goes.

People Need to be Treated as People

Over the journey I have seen many people who make it all about themselves.  They will pick people up and shower them with things, praise and the like until they have what they want and then they will drop them.  Quickly.  When they get treated the same way, they often “ark up” because it is so rude and unfair.  Needless to say, they generally end up alone.

There is an old adage about treating people the way you like to be treated.  It is very simple.  Easy to understand.  When you make this a concentrated effort, you will find good things start to happen and your credibility goes up.

Trust is the guts of it - in yourself, them and lots of others, but I strongly recommend you read “Smart Trust” by Stephen M R Covey – gets the point across very well but you need to trust yourself first.

Make it All About Them

The journey so far has enabled me to see a couple of different styles of leader.  The two styles can be broken down as follows:

  • Those who make themselves feel big by making everyone else feel small; or
  • Those who make themselves feel big by making everyone else feel bigger.

You cannot build people or a family or a business by breaking people down.  It might sound stupid, but you build them by building them.  I have seen a number of people over the past years who focussed so much on their own success that they left everyone else behind.  Needless to say, they generally end up alone.  And bitter.

Be Honest and Open

By taking this approach, you never have to remember lies or mistruths that you may have spoken.  As Ronald Regan said:

“I’m not smart enough to lie”.

It must be remembered that when you are having to have an “unpalatable” discussion, you need to ensure that the discussion is about the issue, not the person.  By trying to minimise the impact of unpleasant matters that do need to be discussed, often times, we will avoid doing this – the outcome from adopting this approach is that the issue ends up becoming even worse.  I can recommend you read the book “Fierce Conversations” by Susan Scott – this will help you get a handle on not only how but why you need to get the openness and honesty thing happening.

If, however, you try and rationalise everything, forget it.  You will generally end up alone.  And bitter and twisted.

Challenge Yourself and Everyone Else

Finding out what actually motivates people and where their strengths lie is a great way of getting people to develop and flourish.  Marcus Buckingham has presented some wonderful videos on Youtube which explain this very well.

When you get the feeling that you are “in the zone”, playing to your strengths and enjoying what you do because it “feels easy”, then you will grow and develop and you’ll share that with the people around you.  But, you have to start with yourself.

Unfortunately, there are people out there who don’t want to challenge themselves first.  By not doing this, they don’t become authentic leaders (or people) because they haven’t been on the trip themselves and therefore cannot give the support and guidance required for others when they try and go on this journey.  They generally find that they don’t have long term work relationships and their social relationships are usually spasmodic/episodic. 

When you adopt this approach, you will generally end up alone.  And bitter and twisted.  And self-obssessed.

Give a Lot Back

The man who will use his skill and constructive imagination to see how much he can give for a dollar, instead of how little he can give for a dollar, is bound to succeed.   Henry Ford

I know there are a lot of people who do not necessarily believe in giving – I’m not referring here to just money.  I am talking about the sharing of knowledge and wisdom.  As my friend Ron Baker says – knoweldge is a non-rival asset – he can share his knowledge with me - I now have it but he still has it – in other words, by sharing, it is expanded.  Giving a lot back needs to be about helping others develop and learn from your and others’ experiences. 

In many professional firms, I see Partners and senior people who are loathe to share their knowledge because they have a fear that the knowledge they share may make them redundant or they “might be found out”. This is also the case in business where the owners and managers of some businesses will be scared of letting go.  By giving back to the people around you, sharing your version of reality and helping them understand new and different points of view, you are helping them develop.  You are giving them the tools that will help them further develop others.  There are a lot of wonderful quotes about education and the legacy it leaves.  By giving back to everyone around you, there is a deep feeling of satisfaction in seeing their confidence, self esteem and competence improve.

Where people are scared to give for fear of, well, I don’t know what, I find it terribly sad.  They will generally end up alone.  And bitter and twisted.

Understand “The Rules”

From my readings and watchings (yes, I know), there is a chord that struck me very clearly from Patrick Lencioni.  He talks about “The 5 Dysfunctions of a Team” and it all starts with trust (Aha! I hear you say).  It develops from there and much of what he has to say supports and is supported by the things I have mentioned above.  I strongly recommend you take 40 minutes of your time and have a look at his lecture at the Royal Albert Hall. 

When you consider the issues he raises about teams and why they don’t work (and, conversely, why they do), it becomes apparent that most of the issues are about having clarity about goals and where you are going, agreeing on what is acceptable behaviour and getting everyone prepared to have “fierce conversations” on the road to getting there.  Couple that with the thinking of Simon Sinek and you get the idea about why working toward something that is worthwhile and “valuable” in the true sense gets things going.

There are a number of people in the world who have only one vision – to make as much money as possible.  They are not inspiring anyone apart from their bank manager (and barely even them).  “Obsession with possession” will generally cause those who aren’t prepared to share, develop and support those around them to lose sight of what is really important.  Their families, friends and work colleagues are merely cogs in a wheel rolling toward a destination that has no intrinsic value.  They will generally end up alone.  And bitter.

People are Irrational

In recent years, the field of behavioural economics has developed and, I must admit to being a bit of a convert to the thinking that is bound up around this school of thought.

We generally believe that people are rational sensible and (effectively) predictable.  Nothing could be further from the truth.  I recommend that you have a watch of Dan Ariely discuss this as it will challenge the way you approach your interactions with people.  Couple this with the presentation by Dan Pink and you will start to see that people want to have interactions that actually “mean” something.

Where folk look at people as cogs in a wheel and use their personal focus on money to believe they can get the best out of people through money alone, they will generally find that those who work FOR them will not give the v0luntary effort that they could.   In effect, if you treat people purely as commodities to be exploited, they will repay you with that level of engagement.  When people such as this are more driven by what they can get from people rather than what they can give, they forget about what it is that the people they are using really want and desire.  As a consequence, they will generally end up alone.

In Conclusion

It is all about people.  Working WITH them, focussing on developing their strengths and having clarity about why you are all doing what you are doing will help them be more engaged and more effective.  You will enjoy the journey more and they will be more than happy to come along with you on that journey.

A lot of people out there have a fear of adopting this approach due to a lack of self esteem or trust in themselves. 

I feel sorry for them as they will never know the true satisfaction that comes from seeing the crew they work with become much better in every sense of the word.

On New Credit Laws

February 27th, 2014

Credit trapAre you in the habit of paying your bills a bit late?

You know – the power bill, gas bill, phone bill etc?  Those bills that rack up during the month and you sit down one night to clear them all up in one go?

Under new credit laws which start to apply in Australia from 1 April 2014, there is a new regime for credit providers to report your credit history.  In effect, the changes will result in your payment history being reported – not just your non-payment history.

Up until now, credit reporting was only done where you were over 60 days late in paying a bill.  With the new changes, you will be “reported” if you’re one day late.

Not much of an issue you ask?  Well, consider this – all the financial institutions will now have access to your full payment history.  They have made noises about the late payment of bills not being a large influence on their credit assessment processes, but they have indicated that they will take this into consideration when looking at any credit applications.

Even if you have a perfect history of paying all your loans and credit cards on time, have never had a default notice issued to you and have generally run a clean financial life, the fact that you regularly pay your phone bill late can have an impact on the financial institutions’ view as to your credit worthiness.  The reporting will also be done when you are in dispute with (say) your telephone company – you’re late and they don’t care about the reason for you being late (even if it is not your fault).

It will come as no surprise that the legislation was largely driven by the banks and financial institutions.  They will be able to use the information obtained to offer a more detailed “risk rating” on everyone and this will in turn mean changes to the margins they charge on loans.  End result?  More revenue for them.  At a time when we need to get our economy going and encourage spending, this type of legislation will end up having the reverse effect.  Talk about the law of unintended consequences!

So, when you get your bills from now on, make sure you pay them on the due date – even if you are in dispute.  If you don’t you might just have a nasty shock coming next time you apply for credit!

Image credit: The Australian

Your Communication Sucks

January 14th, 2014


So how does your communication style work?  I thought mine was pretty good (as we all do) until I was fortunate enough to read “Fierce Conversations” by Susan Scott.  The book was loaned to me by Russ Wylie and I owe him a debt of gratitude for sharing it.  I have realised that my communication style basically sucks.  But, I am doing something about it and using the examples in the Scott’s book as the basis for being more conscious in the way I get my message across.

There are two absolute gems of advice that I took from the book and I want to share them with you as, I believe, the more we are aware of these things, the more effective we will be in our family, our work, our friendships and life in general.

Use “and” instead of “but”

You know the discussion – “Jake, you’ve done a really good job on that, but I’d like you to…”.  This immediately tells Jake he hasn’t done a good job at all.  It gets him defensive and serves to build him up only to knock him down.  Not really clever.

How about taking it from the approach – “Jake, you’ve done a really good job on that, and I’d like you to…”.  Message is still the same, however the delivery is such that the message is far more positive, collabroative and supportive.

Over the past few weeks, I have been training myself to adopt this new style of communication and it is working.  As Shakespeare said in one of his plays “but me no buts” – it is a lesson that is worth learning!

What is your Wake?

The other really powerful message I took from Scott’s book is about the impact your conversations have after they have finished.  Scott uses the analogy of a boat crossing a still lake – the boat passes, but the wake from its passing hangs around for quite some time and can cover a lot of the lake surface – well after the boat has disappeared.

When you approach your conversations thinking about the residual effect it will have on the person you are communicating with, your approach and, I have found, language, changes.  You’re more cognisant of the framing and impact of your communication and the end result is that you’re more effective.

As you will apppreciate, the issues around communication are very important and unless you;re communicating effectively, it will be very difficult for people to work/live/grow with you.

As Susan Scott says at the start of her book (and I am paraphrasing here) – the responsibility for getting the message across rests with the person delivering the message – not the person receiving it.

How do you rate?

On True Effectiveness in Culture Development

November 27th, 2013


You may recall my recent post on the outcomes from a recent Stages of Growth Xray we were privileged to work through with one of our customers.

I have just come from a meeting with the owner of the business and the feedback he provided is exceptional!

He and a number of his crew were having a “Growth Circle” meeting in a tea-room they share with another business and the Manager of that business was sitting at the other end of the room.  She overheard the coversation and was absolutely fascinated by the depth, passion and enthusiasm with which all present were discussing the way forward on the particular initiative they were working on.

As a consequence, she asked our customer ”how do you do that” with regard to getting the team so aligned, open, frank and honest in their discussions with him as the owner?  She couldn’t get over the fact that they all seemed to be treating the business as their own.

This is the truly remarkable thing that flows from the Stages of Growth process – the alignment, enthusiasm and engagement of everyone in the business reaches heights that most business owners don’t believe is possible.  Mind you, this was already a very good business – it’s just taken massive steps to be exceptional.

We love discussing how we work with customers to deliver the massive opportunities that exist for businesses who are looking to make a tangible and sustained difference to their business – it truly is transformational.

If you don’t believe me, I can put you in touch with some very happy and satisfied business owners who can tell you the story from their perspective.

On Candy Crush and Team Management

November 18th, 2013

Candy Crush


So, with my daughter having loaded Candy Crush onto my iPad, I thought I would have a shot at it as lots of people inform me over Facebook as to the levels they have achieved on this app.

As I slowly progressed through the levels, it dawned on me that, to actually get good at this game, you need to have your candy things working together to give you more power.  This (for the uninitiated) invovles moving them and developing strategies to enable them to be grouped which then allows them to possess more power.

The truly amazing thing then happens when you group “consolidated” pieces together.  They feed off and appear to multiply each other’s power to create very significant results.

To my mind, the playing of this silly, mind-numbing, game resembles some aspects of team management – it’s getting them close enough together to then enable that group to create power and then bringing them together with another powerful group.  In effect – together they achieve far more than they can as individuals.

When you look at your people, do you adopt the Candy Crush management style?  Do you focus on gathering them together and then aligning the groups?  The power that is created in a small application on an iPad can teach us a lot about the power that can be unleashed when we use the same strategies with our team.

Based on Candy Crush School of Management Theory, what level are you on in your business?

On 2014

November 14th, 2013

Ok, I know it’s only November, but I have been starting to reflect on the year that is nearly done and the year coming up.

 2013 has been an “interesting” year on a range of fronts for our business and also for me personally.  I have learned an incredible amount and our business has seen the benefits of some really solid planning and focus which is starting to deliver the results we are wanting.

 In the past 11 months, I have learned a hell of a lot about loyalty, honesty, integrity and working in good faith.  Unfortunately, a number of these lessons have been painful, personally hurtful and singularly unpleasant – but it’s what you learn from these experiences that will help you define more clearly what you really value and why you do what you do.

 The best bit though has been the development of our crew in the office – the way they have taken on new challenges and stepped up across a range of areas has been inspirational.  The spirit and ethos they bring to each other and their customers is absolutely inspiring and I feel a deep sense of pride in each of them for the way they are flourishing.

 But, what does this mean for next year?

 It’s a very good question and I have been pondering this in some detail for some time now. 

 We all know that the current economic environment isn’t great – especially for those in retail.  However, we have seen a couple of retailers with whom we work closely absolutely blossom in the past year.  Sales up, margins up and satisfaction way up.  This comes from focussing on what they need to be focussing on and implementing the changes that are demanded by their businesses.  We have proven yet again that a wonderful business is based, first and foremost on engaged and enthusiastic staff – all the businesses that are doing really well have a deep commitment to the development and inclusion of their people in their business.  This communication of the “why” is essential to enable the team to understand that the role they play is vital to the success of the business.

 The communication aspect of business is possibly the biggest area where we see huge opportunities for our customers (existing and new) in the coming year.  We have now developed a range of tools that we use to enable the communication strategies within a business to be addressed and significantly improved.  The Stages of Growth (Growth Curve Xray) and Trimetrix tools are absolutely wonderful and provide the platform for the “elephants in the room” to be put on the table in front of everyone and cut to bits.  Removing these “hidden agents” from a business creates a level of honesty, openness and engagement for everyone involved.  We are privileged to be part of this journey that the teams make as they suddenly realise that their assumptions about things might be somewhat misplaced!

 We have seen over the journey that people in businesses have their own perspective on things and, unless they are dealt with, these differences in perspective can actually poison and business and sabotage even the best efforts to improve things.  The best way to do this is to create the forum and use the tools to bring it all out and address it.  We had a wonderful result recently with one of our customer’s staff where two long-serving team members were basically having a passive-aggressive “war” with each other.  Using the Trimetrix tool as the basis for addressing the issue, we have delivered a change to team members involved such that the “war is now over” and they are working together in a far more harmonious and effective way.  This is transformational work and very satisfying.

 So, on to 2014.  The message will be one focussed around improving communication in businesses.  The process is challenging, rewarding and satisfying.  It creates a spirit within the business that enables people to flourish and develop which translates to better customer engagement and therefore better results.

 Results are just that – they come from focussed effort.  Where the effort is made in the right areas, the results will follow.  We’ve seen it happen so often and helped customers navigate this path so many times we know it works. 

 Communication.  That’s 2014.

On Wonderful Feedback

October 28th, 2013

Following from my recent post regarding the Growth Curve we recently did for one of our customers, we received one of the best bits of feedback from the owner of the business late last week:

“The value it’s already delivered has far exceeded the cost”.

Got to love that.  Especially given they have only been running with the initiatives we identified through the process for just on one week!

If you would like to find out more about how a Growth Curve Xray can significantly transform your business, please contact us.

On Passion in Business

October 23rd, 2013

Passion.  It means a hell of a lot in life. It also means a hell of a lot in business. 

The people who have passion are generally more focussed and supportive of the people in their business and the people for whom they provide services are (again, generally) far happier as they get a more satisfying experience.

Last week, we did a Growth Curve X-ray for one of our customers.  As part of this process, we work with them to highlight their ‘why’. We first ask the team members what they believe the why of the business is.  We then ask the owner(s).

I was absolutely amazed when we asked the owner of this business about their “why”.  It all started off really well, then, as they continued, you could see them becoming more emotional.  As the words started to flow, our customer actually broke down as he detailed the real reason they were in the profession they were in and the decision they made to buy the business they owned.  It was really powerful stuff – so powerful that most of his team also started to get emotional and some started to cry with him.

From that moment on, I knew that we had created a fully engaged organisation.  There is now a commonality of purpose, but, deeper than that, an understanding about why they do what they do and the impact it has on the community in which they are operating.

It’s probably no surprise that this business is so far outside the benchmarks in its industry for performance, results and the other “important” metrics it is not funny.  It is probably also no surprise that also has an incredibly loyal team and exceptionally loyal customers.

But (and here’s the really good bit), when I spoke with the owner last Friday after they had completed the Growth Curve X-ray, he told me how the spirit and the buy-in from his crew had increased incredibly over the Growth Curve process – there was an improved mindset and they were starting to use a new language in the business – a language that they all understood and that “meant” something to all of them.  He said there had already been some small but highly significant changes in the business that were indicators of renewed energy, enthusiasm and engagement.

That’s when I got a bit emotional.  My passion is helping people be the best they can be and working with them to assist them all work better together.  I love it when it all comes together!

It does mean a hell of a lot this passion thing.  In business but especially in life.