Dynamic Business: Pandemic era lessons from the Big Apple

Tim McCready. Photo / Supplied

Taking part in Air New Zealand’s business delegation to New York on the new direct Auckland-New York City flight was a great opportunity to catch up on the United States economic environment, trading conditions, geopolitics and trends. As someone who hadn’t crossed the New Zealand border since 2020 (but pre-pandemic was a frequent long-haul traveller), it was also a chance to get a taste of travel in the Covid era.

More than 20 of NZ’s most influential business leaders joined the delegation, including the heads of Mercury Energy, NZ Beef & Lamb, Sanford, The Warehouse Group, SkyCity, Infratil, Spark, Beca, Ngāi Tahu and the University of Auckland. Between the CEOs and directors on board NZ2, Air New Zealand was responsible for carrying a sizeable fraction of New Zealand’s Top 200 businesses.

These delegations are often predicated around government-to-government relations such as bilateral and multilateral meetings, or free trade agreements, but this trip was different.

Despite including Deputy PM and Finance Minister Grant Robertson and National deputy leader and finance spokeswoman Nicola Willis as part of the delegation, one of the distinct things about the trip was that it wasn’t politically focused.

Air New Zealand chair Dame Therese Walsh described the visit as a chance to not only showcase the airline’s new flagship route but to “get back to doing what Air NZ used to do — be an important part of NZ Inc thinking and New Zealand’s economic development”.

Air NZ CEO Greg Foran’s status in the US was evident (he was previously CEO and president of retail giant Walmart US). He used his cachet to pull in high-profile speakers including Indra Nooyi — the former chair and CEO of PepsiCo and often touted as one of the world’s most influential women.

Though meetings were held under the Chatham House Rule, some of the lessons that stood out from three days on the ground in the Big Apple include:

From NZ to NY the challenges remain the same

The mood in many meetings was sombre, as the US grapples with many of the same economic headwinds as NZ. A looming recession, geopolitical tensions, constrained supply chains, a shortage of talent, burgeoning inflation and interest rate rises are creating uncertainty.

While Covid restrictions have all but gone in New York, the pandemic has left a permanent mark on the city. Companies in the US have embraced hybrid working which is considered “here to stay” as employees demand the flexibility that comes with it.

Covid testing sites are still scattered about, and despite no requirement for face masks, their use seemed far more common than in Auckland on public transport and in public spaces.

ESG under strain - but ignore it at your peril

The acronym ESG — which takes into account a business’ efforts on environmental factors, social issues and corporate governance — has risen to prominence over the past few years. But recently it has become politicised in parts of the US. Its association with liberalism has seen a backlash among some Republican officials who have described ESG policies as “woke”.

Acronym politics aside, there was a lot of talk in New York that US investors, customers and employees are continuing to focus on whether businesses are authentic about their purpose and leadership, and whether they are doing what they say they are doing when it comes to society and the environment.

This is more important than ever as Gen Z (those born between the late 1990s and early 2010s) become more prominent in the workforce. Many are choosing not to engage with businesses or even apply for jobs with employers that have a perceived negative impact on the environment, or an organisation that lacks diversity. If a business can explain why its activities are important not just for commercial differentiation but also for the planet and society, it will be a valuable competitive differentiator.

No time for short poppies

Kirsten and Craig Nevill-Manning, former Facebook and Google executives who are among our most successful offshore New Zealanders, hosted a reception for the delegation at their spectacular multi-level Brooklyn apartment complete with a stainless-steel slide to traverse the floors.

There, a panel of New York-based Kiwis spoke about the many New Zealand businesses that are doing great things in the US — but stressed that we continue to be too demure for an American audience. To get cut through in a crowded market that moves quickly, businesses must be prepared to share their unique points of difference and accomplishments as loudly as their competitors do.

The ex-pat community in New York is small but tight-knit. Those that we met on the ground are keen to welcome more to the city and pass on their deep experience and advice to others so that New Zealand businesses can hit Manhattan running and make their mark on the city that never sleeps.

Good news for tourism and business

Despite being closed to visitors for two years, New Zealand continues to have a lot of friends offshore. Everyone who spoke to the delegation had fond things to say about our country and those who have not yet been innately like us and have the desire to visit — even if they couldn’t pinpoint exactly why.

There was an expectation from business delegates and those we spoke to that the direct flight between Auckland and New York will have a role in shaping how NZ’s economy and future opportunities evolve.

One US-based investor likened New York to a “multiverse” since there is so much going on in such a diverse city. He said the need to transit when travelling from the east coast of the US to New Zealand previously put a lot of people off coming to Aotearoa, and the air link will now “connect Middle-earth with the multiverse”, bringing immense opportunity along with greater capital, entrepreneurship, and talent.

• Tim McCready was a guest of Air New Zealand on the direct flight to New York.