Management, Australian Style

A new study of Australian managers finds our executives are wimps; although no-one has told those at the sinking helm of NewTel.

Ducking For Cover

Is there a distinctive Australian management style? According to uncomfortable new research, it's about avoiding conflict, passing the buck and covering the posterior. The study by the Australian and New Zealand branches of global organisational development specialists Human Synergistics International asked managers to describe themselves in questionnaires. It found that the most frequent style was "avoidance". This was defined as "reducing threat, fear of failure and a tendency to deny responsibility for one's own behaviour". The second highest was "conventional": seeking security, sticking to rules and conformity. And when the researchers then asked 166,410 people, all chosen by the managers, to rank the subjects of the study, they saw the managers as being even bigger wimps than the managers thought themselves. (Source: The Age)

Watchdog Fears Becoming a Lapdog

The ACCC could turn from consumer watchdog to corporate lap-dog if a panel were set up to monitor its progress, one of its commissioners has warned. Ross Jones says the Australian Competition and Consumer Commission risked having its independence undermined if there were an inspector-general and its public-process method of selecting its five independent commissioners was the best way to guarantee its impartiality. He says the Trade Practices Act makes it clear that decisions are based on a majority vote of the commissioners and this means decisions reflect the collective views of the individuals involved. (Source: AAP)

New Tel Funds Debt Buyout

Serious allegations have been raised that embattled telco New Tel is using shareholders' funds to help prop up a deal by Broadband & Wireless to buy out New Tel creditors. Perth-based New Tel and high-living chief executive Peter Malone are desperately fighting off the appointment of administrators. The emergence of BWL as a middleman in a transaction to pay off New Tel debts has prompted more questions than answers in the telecommunications industry - given that serious doubts have arisen about BWL's access to funding. The Australian is reporting that New Tel transferred more than $1 million to interests associated with BWL last month. BWL has denied the transaction took place. (Source: The Australian)

Sydney Gas Grills Deloitte Chief

Meanwhile, Domenic Martino, the high-profile chief executive of accounting giant Deloitte embroiled in controversy over the collapse of telco company New Tel, has been forced to defend criticism from shareholders in another company over big pay hikes for directors. Martino is the chairman of the Sydney Gas Company, a junior gas explorer, and came under fire at the company's annual meeting from shareholders concerned about the level of fees flowing to directors in a year when the company raised $7 million from investors. He also attempted to defuse shareholder anger over directors' consultancy contracts. Sydney Gas paid out more than $1.4 million last financial year to related parties of the directors, up from about $565,000 the year before. (Source: TheAustralian)

Aussies Worst Bank-Haters

Australians are the worst bank-bashers he has ever come across, ANZ Banking Group Ltd boss John McFarlane says. Mr McFarlane has told ABC radio Australia's geographical isolation had helped build a culture of bank-bashing, but the banks had to take some of the blame. He admitted banks had to start putting something back into the community, not just making withdrawals. But he said bush communities in particular were very sensitive to bank cost-cutting, and closing a couple of country branches might save $1 million a year but wipe $500 million off the bank's market price. (Source: NineMSN)

Shark Leaves Austal Red

Golfer Greg Norman has driven Austal into the rough, with the Perth boat builder revealing a major cost blowout on Norman's yacht, Aussie Rules. Austal said the blowout would push it into the red in the first half and the full-year 2002-03 profit would be substantially lower than expectations. Investors wiped more than 21 per cent off the stock to an intraday low of 83c. It closed 22c lower at 84c in heavy trade. Austal was not expecting to make a profit on the golfer's 69 metre aluminium-hulled yacht, reportedly worth $70 million, but the magnitude of the undisclosed loss surprised some analysts. (Source: SMH)

AMP Admits Depth Of UK Despair

AMP is likely to lose up to $1 billion in calendar 2002 after slashing another 2000 jobs and taking a $320 million restructuring hit on its troubled UK businesses. Chief executive Andrew Mohl this week came clean on the dire state of the British operations, which he has rapidly shrunk since his October appointment. The latest instalment of his sweeping business reform terminated the 700-strong door-to-door sales force employed by AMP's Pearl pension business in the UK, along with 300 household advisers and about 750 support staff. Another 150 jobs will go through restructuring and 100 will be cut from the Henderson Global Investors funds management arm.(Source: The Age)

South Africa Tells Miners Change Will Be Gradual

South Africa's deputy minister for minerals and energy, Susan Shabangu, has told a private briefing of Australian mining executives that a black empowerment proposal for the nation's mining industry would not damage their economic and financial interests. She says South Africa "stood willing to co-operate with all foreign companies", and the Government was eager to foster a confident and stable mining sector. The global mining industry was traumatised this year when it was reported that the South African Government was considering a proposal that would give black investors control of all new mines within a decade. The plan could have a big impact on Australian companies operating in South Africa such as mineral sands operators Ticor, BHP Billiton and a string of junior explorers. (Source: SMH)