Good relationships drive growth

By Mark Story

The years that Port of Tauranga boss Jon Mayson spent in the Merchant Navy from the age of 16 taught him how not to manage a business.

Hierarchical structures, he learned, don't get the best out of people, nor do they make for the best operating systems.

When he stepped in as CEO of the listed company in January 1997, the port was in reasonable shape. But when it came to relationships with customers, he says, the company was a basket-case.

Mayson's first mission was unwinding the port's reputation for high-handed pomposity. Having worked at the port in a variety of roles since coming ashore in 1972 - among them as a tugmaster, a harbour pilot and in operations - Mayson knew instinctively the company needed rebuilding from the ground up. This meant developing strategic relationships and nurturing a culture of shared responsibility.

"The key to our success is how we've built relationships with staff, unions, service providers and the broader community," says the 58-year-old father of three.

Underscoring his management philosophy was the ambition to make Tauranga New Zealand's preferred cargo gateway. But that does not mean being the biggest port.

To Mayson, what really matters is being number one in the eyes of shareholders and customers, and learning from mistakes.

He regards restoring relationships as one of the biggest hurdles that has been overcome.

"Over time, we've turned the negative attitude on the waterfront into one of joint responsibility. The 34 days the port was closed in 1989 were painted by some as the day watersiders lost power. But they forget that reforms only came about because everyone agreed to change."

Mayson has reduced Tauranga's reliance on the bulk shipment of logs. In the 1996/97 year log shipments accounted for 40 per cent of business; last year they comprised 29 per cent, against a backdrop of five consecutive years of record port traffic.

While seeing the port's net after-tax profit double since 1997 - in the year to last June it made $25.9 million, and the company's share price has outperformed the NZSE40 Index every year - Mayson says he has delivered on promises.

Those include making Tauranga the country's largest export port - it handles 33 per cent of national exports by value - and becoming number two in containers; making inroads into Auckland through Metroport; acquiring road transport company Owens Services, which handles forest products in 10 ports; and developing relationships with other ports.

What experiences have fashioned Mayson's management thinking? The self-discipline and survival skills acquired during life at sea have been invaluable.

Equally motivating, he says, was the bloody-mindedness inherited from his Christian pacifist parents. In keeping with their convictions, they banned him from doing compulsory cadet training at school, earning ostracism from classmates.

What this cultivated in Mayson was a self-belief and an appetite for defending a viewpoint, no matter how unpopular. This helped to stretch the self-confessed timid boy from Oamaru.

In an effort to rely less on sea-based skills, Mayson completed a New Zealand Institute of Management diploma in management in 1989 and a master of business administration in international management from the Asia Pacific International University two years later.

But despite refocusing on things management, he is not cast in traditional corporate mould. A change-agent by nature, Mayson is an ardent advocate of consensus decision-making.

He is also passionate about listening to staff before delegating responsibility - in return for accountability.

As a byproduct of the increasing use of containers, innovation and contracting out, staff numbers at the port are fewer than in pre-reform days.

There has been no industrial action since the dark days of 1989, and staff turnover is less that 1 per cent annually.

So how is Mayson keeping them? Between 10 and 20 per cent of staff pay is at-risk. When the company does well, staff are issued with bonus shares.

He likes to think of the port as an extended family where members participate in on-going reform and are rewarded accordingly.

"This business should be an enjoyable experience where people have fun, help each other, share common vision and values."

As an employer, he gets the most pleasure from watching staff grow.

"I'm inspired by people who strive for excellence and those who challenge conventional practises," he says. "The biggest thrill for me was being able to shoulder-tap people I'd worked with ... and invite them to join my senior management team."

After a lifetime in and around ports, who are among Mayson's fondest mentors?

In hindsight, he sees the port's recent acquisition of Owen Services from the late Sir Robert Owen as an interesting corollary to a precious friendship. A younger Mayson sat with Sir Robert on the harbour board in the early 1970s.

In fact, it was Sir Robert was gave the younger man his first job after Mayson ashore in 1972.

"Those days sparring with Sir Robert were a turning point," says Mayson. "His convictions showed me that I could achieve anything that I passionately believed in.

"I've never failed to achieve what I set out to achieve. The best reminder of what else we can achieve is what we've managed so far.

"If each of us could recognise the potential we have as individuals, we could make an amazing difference."

Mayson has no plans to step down, nor does he subscribe to the view that companies must constantly change the top dog.

He is convinced there is untapped opportunity for ports to work together without affecting one another's profits. That said, he hints with a wry smile that Port of Gisborne could be Tauranga's next opportunity.

* Email Vicki Jayne