David Trim: Sound strategies needed now

We cannot afford to slow Napier's economy down, writes David Trim. Photo / Glenn Taylor

One thing I have learnt from my years in business is that uncertainty kills growth and diminishes vision. Major decisions are put on hold, resulting in a loss of momentum, which means profit margins stagnate or decrease.

Napoleon Bonaparte once said "Nothing is more difficult, and therefore more precious, than to be able to decide." In times of uncertainty, some leaders make tough choices with courage and conviction. Others can't cope with uncertainty and remain indecisive, which ultimately gives their rivals the upper hand.

Every sound business person out there would easily recognise this as being a pretty dismal situation for their company to be in. This is exactly the situation Napier Inc finds itself in at present. For example, the uncertainty the amalgamation debate is bringing to our city is like when employees of a business have been told there's a restructure and some positions may not be continuing. There is a feeling of loss, insecurity, stress and worry. Motivation decreases, and self-interest increases.

We cannot afford to slow Napier's economy down. The amalgamation decision is going to stretch out well into 2015. In the meantime, the worst thing our city's businesses can do is sit back, watch and wait. This doesn't mean we make rash decisions. Our decisions still need to be considered and informed. But we don't wait for the final amalgamation decision before we continue charting our course.

Napier's business leaders — from the large companies, to the small business owners — need to use sound strategies to help with their decision making during this time of uncertainty. This will help their businesses chart turbulent waters unharmed. But no decision-making strategy is perfect; all must be used with caution.

For example, business leaders often draw analogies with past experiences when faced with a complex problem. They draw comparisons to similar situations or circumstances from their past or the history of other organisations, and deduce certain lessons from those experiences. Unfortunately, most analogies are imperfect. No two situations are identical. Many decision-makers spot the similarities between situations very quickly, but they often ignore critical differences. Identifying the differences is just as critical.

In times of ambiguity, business leaders may feel it is best to imitate their rivals, rather than going out on a limb with a different strategy. But the essence of a good strategy is to develop a unique system of activities to help an organisation differentiate itself from its competitors. Copying the strategies of rival businesses won't produce a strong and unique strategic position. It takes great courage to stand alone when rivals engage in herd behaviour, but it can pay huge dividends.

We need to ask the question: If Hawkes Bay's councils amalgamated, would Napier's long term vision change? Would the long term visions of our businesses change? Could we expect an increase in productivity and economic growth beyond the immediate time after amalgamation?

Conflict and dissent during decision making can be very productive if managed appropriately. But many debates, like the amalgamation, result in a stalemate between opposing camps. Often, stalemates lead to personal conflict and attacks. This is a dysfunctional form of conflict and makes it difficult to build commitment, and diminishes the likelihood that team members will want to cooperate with one another during implementation of a decision.

I am not convinced that the current amalgamation plan on the table is the best outcome. However, I am convinced that if we can share about 50 services and projects harmoniously, then there must be a way to increase how we work together in more projects. While our identity and cultures are distinct, it isn't all negative. We actually aren't that far apart from each other, in geography or ideology. Many of our shared services are not just functional, they are of award-winning quality. This demonstrates that our two cities have established trust and a long history of being great partners.

Our council is a multi-million dollar business. It simply is not feasible to sit in limbo and hold back our future potential. The discussion has been long and the pros and cons have been thrashed. Amalgamation is not the enemy; it is how we amalgamate that is of more concern.

Napier needs to pick up its momentum, set the multi-million dollar organisation into forward gear, stop being distracted, and get going. It's easier to keep a locomotive moving than it is to begin from a standstill.

Napier is a surviving city. We survived and thrived after the earthquake. I am convinced that we will thrive with or without an amalgamation. However I believe we can achieve so much more with the right amalgamation model. Then if we have a clear vision, measurable action plans and a passion and energy to make things happen, Napier will be in good hands.

David Trim is a board member for Hawke's Bay Chamber of Commerce and a candidate in the Napier City Council by-election.

Business and civic leaders, organisers, experts in their field and interest groups can contribute opinions. Email editor@hbtoday.co.nz.