Thinking big works well for trucking business - Polson Higgs

Issue 12008Thinking big works well for trucking businessTransporting logs for Canterbury'slargest forest owners while seeing the familybusiness double in size overnight has meanta demanding start to 2008 for SML GeneralManager, Chris Murphy and his father,Director Steve Murphy.After being successful securing a threeyearcontract to despatch and distributelogs for Rayonier, SML purchased McCarthy& Wilshier Transport Ltd, whose workforcemoved from its Rangiora site to SML's baseat Kaiapoi. The business now has 49 staff,who help to manage the 40 truck fleet. HRissues, such as reviewing individualemployment contracts for all staff, havebeen among the challenges with combiningtwo cultures.To ensure the transition went ahead assmoothly as possible, Chris and Steve, whoset up SML 25 years ago, have drawn onthe expertise of Polson Higgs."This has been a significant growth periodfor our company and Phillip Roth (PolsonHiggs Partner) has been very involved inhelping us with the strategic planning aswell as guiding us through the process andensuring we are continuing to operate awell-oiled machine," Chris says.Phillip, who has become a director ofSML, has also ensured that the Murphyshave a viable succession plan in place toensure that there is continuity, and tomaintain confidence among staff andcustomers. As well, Polson Higgs regularlyreviews the business's financial statements.Chris joined the business 17 years ago,after completing an apprenticeship inbuilding and then having run his ownbuilding company. He began at the bottomof the ladder at SML, as a self-loading truckdriver and then moving towards despatchmanager before taking on his current roleas General Manager/Director.His background has prepared him wellfor the demands of an industry that hedescribes as "selfish" for those with families."Our drivers start work at 4am and oftendon't get home till 6pm and they arewhacked by then. Many are getting uparound 2.30am. But we can guarantee thatthey won't be away overnight or have towork weekends."While carting logs for Rayonier and P FOlsen, another major arm of the businessChris Murphy, SML General Manager.is the bulk woodchip division for NZPP. SMLalso works alongside other log transportoperators around the South Island so theirterritory extends from Richmond to Dunedin.The huge mileage means the truck fleetrequires regular maintenance and SMLoperates a busy workshop on site. Trucksare serviced every 5000km to ensure theycan clock the required 120,000km onaverage each year.Chris says the forestry industry inCanterbury is operating at its peak nowand will gradually decline in some areasover the next few years - however, he isconfident that his business will not sufferthe same fate.Top Institute role for Graham CrombiePolson Higgs Partner and ChiefExecutive Graham Crombie hasbeen appointed as President of theNew Zealand Institute of CharteredAccountants.Graham, who joined PolsonHiggs 25 years ago, worked inPolson Higgs predecessor firms'Auckland and Melbourne officesbefore he returned to live inDunedin, where he was born andeducated.He relishes the variety of hispresent role and says working withpositive people and empoweringthem is important. "Surroundyourself with really good people;keep your ego as small as you can,and you don't need to be in controlof everything," he says.He also enjoys governanceroles - he is Chairman of the boardsof Otago Polytechnic and SouthLink Health, a not-for-profitindependent health practitionerassociation.Graham believes it is importantto strike a balance betweenworking hard and living life to thefull. To this end, he has embarkedon several fitness-related activitiesincluding: riding his mountain bikein the Taupo Challenge (160km),which he has completed threetimes, and the Dunstan CycleChallenge (100km). He has alsokayaked in Antarctica andmastered a jetski.A talented musician, he wasonce a bass player in both the StKilda Brass Band and the NationalYouth Brass Band. Much of hisleisure time is spent with his wifeJanet and sons David and Michael.During his presidency Grahamplans to visit the Institute'sbranches to help them celebratethe Institute's centenary year. Evenwith this busy schedule, Grahamwill continue to work with clients,partners and staff of the firm.1

Business moves into top gearWhen motorcycle enthusiast Wayne Pocklington bought into a Dunedin businesslast July it appealed as both an opportunity and a challenge.However, the task that awaited Wayne and his business partner at Honda Otagowas more formidable than either man expected and they soon sought assistancefrom Polson Higgs to "sort out all the problems the business had so that it could besteered in the right direction".The business systems have undergone a major overhaul during a challenging ninemonths for the dealership, which holds the franchises for both Honda and Triumph,selling both new and used bikes and accessories as well as operating a workshop.Polson Higgs Partner Michael Turner and accounting software specialist DonnaCameron have worked extremely hard to understand the business and the informationbeing produced. Donna's computer expertise was used to determine what changeswere needed to try and work with current systems to gain material that was accurate.Michael initially looked at what the vendors had represented to the new ownersas regards the business, and prepared accounts to try and reconcile two sets offigures and identify any discrepancies. He then worked closely with Wayne to ensuresystems were put in place that give an exact gauge of activity and profitability,including two-monthly sets of accounts."We are now in a position where we believe information is reliable. Systems are inplace that are being appropriately managed and the business is trending in the rightdirection," Michael said.Wayne said that "the rev-up" delivered to the business has resulted in severalimprovements and it has "turned a corner."Wayne believes Polson Higgs has played a large role in addressing the issuesfacing the business. "It's essential to use a company that you have faith in becausethis was a business needing more than band aids. It couldn't have been repairedwithout a high level of expertise."Now that the initial purchase, systems and computer software issues have beenaddressed the business will be able to focus on some of the opportunities whichexist. As Wayne explains: "We're lucky because we service a strong farming baseand we also sell and service a lot of road and moto-cross bikes. Most other bikeshops around New Zealand do one or the other."Such is their commitment to the farming sector that a specialist service vehicleregularly travels Otago's rural roads, to fix the four-wheelers that are popular on farms.Wayne believes that an owner never stops trying to improve a business, and byworking in tandem with Polson Higgs, he can make Honda Otago even better.GoodinductionprogrammevitalThe common cry from employerstoday is that finding good staff is difficult.Therefore, it would make sense thatwhen new employees are signed upthat their first impression when joiningthe organisation is a positive,memorable experience that sets thescene for a long, productive workingrelationship.So what should employers includein a good induction programme?It needs to be well planned andexecuted. Decide what information isimportant for the employee to receiveon the first day. A formal programmewith dates and times for meetings andinformation sessions is helpful.A friendly welcoming letter beforethe employee starts outlining what timeto arrive, where to park, who to ask forand what the employee can expect onthe first day helps set the scene forworking at the organisation.A good impression is made whenthe workspace is set up with computer,email and telephone all operational,and current staff aware of the newarrival.Meetings should be spaced over aperiod of time to give the employee timeto digest the information that they willbe receiving from a variety of sources.Other elements of the inductionprogramme should include:• Discussion of the firm’s vision andvalues.• A full health and safety briefing.• An outline of initial training and theguidance the employee can expectin the first six months.• Setting of initial performance goals.• Explanation of and access to the firm’spolicies and procedures.• Information on all employeeentitlements.• Meeting the manager and the “buddy”or “go to” person.• A tour and site map to help prevent“lost” moments.Remember that induction is aprocess, not an event. It takes time foremployees to integrate into their newworking environment. A good inductionprocess will ensure new employeesadapt quickly to the organisation, feelthey belong and that they have becomeproductive contributors.3