Māui Rau

From signal to action

June 2017

kpmg.com/nz 2 • KPMG • MĀUI RAU Mihi

Ko Meretūahiahi, māna te kahu nui o Hine e tākiri, ia pō, ia pō kia tū mai ngā whetū kānapanapa i te rangi e tū iho, kia ngāngā mai ngā whetū i te kanohi ā-tangata i te papa e takoto ake nei.

Tēnei te pō, nau mai te ao.

Tahia te tau, he mate huhua kei te rangi. Ko te whetū o te rangi e ngāngana ana ko koe, e Awa e. Nāu a Māui Rau tuatahi i kaha tautoko, e moe, a, whakamāramatia mai te ara ki mua i te iwi kua waihotia ake ki muri nei. Okioki mai rā koutou.

Nō reira, kumea mai ngā whatu kia piri, kumea mai te hinengaro kia tata kia werohia te pū, te weu, te aka, te tāmore e puta nei te whakaaro kia whakahiko ake i te mahara, tūturu he uri tātau nā Māui-tikitiki, ae, he uri tātau nō Te Kāhui Māui. Tēnei te kupu e rārangi nei hei ngaungau mā te whatumanawa kia eke ki ngā taumata e kīia nei:

‘E kore e ngaro, he kākano i ruia mai i Rangiātea’.

Whākina! Whākina! Whākina!

KPMG • 3 Opening

The rising of Matariki signals fresh beginnings, a time to turn and prepare the soil ahead of planting for next season’s bounty – the eventual harvest to sustain a whānau or hapū through the seasons until the next year.

In times where there was some It’s our leaders and entrepreneurs that consistency in the seasons from year demonstrate what it means to have a to year, planning and responding to the mindset that says we can, we must, natural elements could be done with we will! We need people who can instill reasonable accuracy in pursuit of feeding and foster inner belief in our ability to do the people. The practice of preserving the things we dream of and to iterate kai being an absolute necessity. our way to self-determined success. Not everyone is able to challenge norms But what we have seen in the last or find new and better ways to solve twelve months is that the elements problems and achieve results. Our do not always behave in a predictable tūpuna were forced to do this in order manner, causing upheaval in many to survive, but now we must turn our lives. Furthermore the mindset around heads to a much higher goal – to thrive. ensuring resources are saved so It is clear that conservatism in this day that they can continue to be used in and age is not a quality that will serve perpetuity is being challenged. this end; because for conservatism Nature aside, cyclones of the social, leads to comfort, and comfort leads geo-political, cultural, environmental and to complacency. When we are economic kind are both wreaking havoc complacent, we live in mediocrity and and effecting transformation on society; we become the victims of change the extent to which that is good or rather than the drivers of it. otherwise is a matter of opinion. In order to thrive we need to exercise Such tumultuous times require people our Mana Motuhake and actively who can spot the challenges and navigate our way through the changes. opportunities, who can determine To do that, we need to be prepared to courses of action and have the courage put our heads above the parapet, and to act amid uncertainty and incomplete have the courage and determination to information. Natural leaders do that move forward. while influencing, mobilising the masses, This will mean that our leaders need to instilling confidence and empowering be open to considering matters that they others. Entrepreneurs are leaders in know little about, to acknowledge their their own right, and they inevitably do strengths and weaknesses, and actively the same over time – whether that is to consider how they build complementary influence people to invest, to appeal to teams for success. the masses to use or buy their product or service, or to trust in others to help build a business, the qualities are eerily similar.

4 • KPMG • MĀUI RAU KPMG • 5 CONTENTS

PG 4 Opening

PG 8 Foreword

PG 10 Looking back on Māui Rau 2016 12

PART ONE Leadership 36

PART TWO Entrepreneurship 72

PART THREE The call to action

6 • KPMG • MĀUI RAU PG 24 Counting the real statistics Te Pae Tata

PG 18 PG 28 A values based life Success in succession Kate Cherrington Wakatū Incorporation

PG 34 PG 50 Education for the real world The future of entrepreneurship Te Kāpehu Whetū Young Enterprise Trust

PG 44 A youthful perspective MaiBiz

PG 64 A healthy disregard for the status quo Moko Foundation and iMOKO™

PG 56 PG 68 Finding the big idea Challenging the new frontiers He Tangata Start-up Weekend KorumLegal

KPMG • 7 Foreword

Imagine if our ancestors had accelerated their adoption of the new technologies of the Europeans when they first arrived. It is true that they did so in some areas – with examples of early adoption of trading and shipping practices, and of course the use of weapons used to settle centuries of feuds and spark new conflicts and resentment.

However what if our ancestors saw the Prominent Māori leaders travelled harnessed traditional medicine with arrival of European technology as an to Europe and the United States new technologies that exported health opportunity to innovate. To achieve firstly completely against the flow of travel to the world. improved outcomes for their people, in those days. At a time when people Fast forward 200 years to modern-day and secondly to move them ahead of were leaving the old world in search New Zealand and the question that these new immigrants into a position of new lands and opportunities, needs to be asked is: “Could Māori be of power in the new country that was Māori were travelling to meet with early adopters of advances in technology being formed. Kings, Queens and heads of states that will accelerate outcomes for our so they could learn more about the It is a stretch of the imagination to people and also promote Māori forward societies with advanced technologies suggest this, but if you are in the position as world-class leaders in innovation?” these arriving European settlers of being an innovator you know that the The answer in my opinion is definitely yes. were coming from. dream of creating something new and Māori should plan to lead innovative the pursuit to achieve this over and over Importantly, they were doing this to see action that moves us ahead of the bunch again is all that is needed. how new learnings and early adoption in New Zealand and positions us on the in New Zealand could benefit them. world stage as reliable producers of Imagine if with the arrival of the first That would be very much like modern quality innovative technology services Europeans, Māori examined the new Māori travelling to the west coast of and products. How can Māori society technologies of farming, medicine, the USA to arrange to have meetings become the Israel of the South Pacific? construction, communication, retailing with Satya Nadella, Tim Cook, Elon Israel have moved in the space of being of goods and entertainment, and looked Musk or Travis Kalanick and returning a leading producer of quality innovation to rapidly adopt these technologies to New Zealand to establish the next using digital technologies. They are and even sought to improve on these Silicon Valley. achieving this in spite of the huge turmoil latest models. their region is in. It is well known that Māori were Obviously it needs to be considered early adopters of sea shipping and Last year I was part of the inaugural that this expectation on our ancestors trade, and they posed a threat to the NZTE Māori Technology Trade Mission to respond in such an assertive and new settler traders at the beginning. Te Tira Toi Whakangao (T3W) to the confident way is in the context of them Imagine if this scenario had played USA taking in San Francisco, Chicago struggling with the sudden and harsh out and Māori had become the and New York. On this trip were seven change in the way that their societies strongest traders, developers of Māori-owned technology companies were operating. It is fair to say that it settlements including ownership, across a number of sectors covering would take exceptional ability and effort controlled the processes around new social services, health, septic waste for our ancestors to consider this bold agricultural developments, developed management, entertainment, electric move; however there is evidence of the new forms of communications, and vehicles and business support services. courage to innovate.

8 • KPMG • MĀUI RAU with thosegroups. it enhancedourbusinessinteractions on many occasions;andinmy opinion, form of mihi,waiata, karakiaandhaka mission, we exhibited ourculture inthe tikanga would attest to this. On this trade travelling Māorigroupswhopracticeour our culture intheirown landsandmany Overseas peopleequallylove tosee New Zealand for internationalvisitors. beautiful landscapeasareasontovisit Māori culture isjustbehindseeingour visitor toourshores.Experiencing how that impactsonevery overseas value of ourstrongMāoriculture and For alongtimewe have realisedthe our culture totheworld. and takingnotonlyourproductsbut digital solutionsfor globalproblems; innovators looking tocreateinnovative aspirations for whatispossiblefor Māori New Zealand. Ithasliftedmy gaze and of innovative digitalhealthservicesin we arewanting todointheprovision trip was arevelation for meandwhat response totheabove question.This of working togethertodevelop a both partiestoexplore theopportunities and techstart-upcompaniesallowed groups. This smartgatheringofinvestors representing mainlyiwiinvestment In additiontherewere four individuals

the pursuitofinnovation. tracks andcourageofourtūpuna in with otherMāoritoretracethe in Māui Rau 2017 andworking I amexcited aboutbeingincluded because itishard. to dothisnotbecauseitiseasybut accelerated level ofprosperity. We need that allow ourpeopleaccesstoan new industries, productsandservices Let allofusintheMāorisectorpursue change for ourpeopleisdesperate. technologies arehere,andtheneedfor for change.Well thetimehascome, technology advances, timingandaneed The usualingredientsfor innovation are the direissuesthatourpeopleface. is thatwe hadtoinnovate toaddress to care.The reasonfor ourexistence most importantlyallowing earlieraccess use, smarteratdelivering thecare,and Services thataremoreconvenient to are seekingbetterhealthservices. New Zealand Māoricommunitieswho grown fromthegrassrootsofrural Our business,Navilluso Medical,has

Te Rarawa, Ng New Zealander oftheYear 2014 Medical Limited CEO/Co-founder Navilluso Dr. LanceO'Sullivan ā ti Hau,Ng

ā ti Maru

KPMG

•

9

Image restored by Adam Cuerden Looking back on Māui Rau 2016

Hindsight is a wonderful thing. When we set out to undertake Māui Rau last year, a number of questions constantly ran through our minds: — is this initiative relevant and meaningful? — what will people say and contribute? — is having a kōrero enough, or do we need to have solutions to share? — at the end of the day, will this initiative make a positive impact?

The response to Māui Rau 2016 truly to them that they didn’t already know Your thoughts shared with us: exceeded expectations, but it wasn’t until (income rises with qualifications) and it “ Excellent mahi. Inspiring, strong and the 2017 haerenga that we understood kicked off a great conversation among meaningful, as a young business the true impact. Contributors continued them that maybe qualifications are worth owner Māui Rau has assisted with the to express their appreciation for the staying at school for. direction of my business.” report, but more importantly shared their It is easy to forget that the simplest own Māui Rau stories about how “ You've continued to inspire young information in a visually appealing way they had used the report to provoke people who may never have thought can be really powerful when put in the thinking, inspire change and engage twice about tertiary education.” right form, in front of the right people, with external stakeholders. in the right places. This sense of “ Just got around to reading this! The most powerful impact was potential impact inspires us to continue Wicked, insightful stuff.” discovered a week after the Māui Rau the Māui Rau journey. “ Thanks for creating space to wānanga. report launch, where a kaiako at Te Reflecting on 2016, it was clear that Having the chance to step out of the Kuiti High School printed one of the most of the calls to action needed one day-to-day and listen to like-minded infographics from the report showing of two levers pulled to generate the people – and to see how many are how average income increases with energy and momentum to act. working to get our organisations each qualification level. As she put it up These broadly fell into two kaupapa – better aligned with the needs, hopes on display, a few of the students asked leadership and entrepreneurship. and values of our communities.” what she was up to, so she told them to come and look – it revealed something “ Well about time we all get on the same page, I second that!”

10 • KPMG • MĀUI RAU Leadership Entrepreneurship

Enable Redefine succession success

Leverage Invest in talent prosperity

Build new-world Be tech- education models enabled

Demystify Share the the picture stories

Seek Redefine our inspiration market opportunity

Embrace urban Be populations sustainable

Clarify the Create connected horizon enterprises

KPMG • 11 PART ONE Introduction

Readers felt that their own thinking was reflected and articulated in a tangible form in Māui Rau last year. And so we left the formula relatively unchanged, other than welcoming Kirikaiahi Mahutariki to Team Māui Rau. Kirikaiahi joined ASB as Executive Manager, Māori Financial Solutions.

We had some slight adjustments in great mahi. They are examples that we showing the innovation of Ngāti Kuri, their location for 2017 and were privileged are delighted to showcase so others can preparedness to embrace technology, and to start our journey this year in Otepoti continue to add to their own kete. share the story of their kaitiaki with their and end in Waitangi. We extend our own people while protecting the species. immense gratitude to you all for hosting We pay huge acknowledgements to Lance It is translucent and sets off a beautiful us and sharing kai and kōrero in the spirit and Tracy O’Sullivan, Kate Cherrington, glow... to represent the opportunity of giving and contribution to a greater Ropata Taylor and Wakatū Incorporation, that only requires a shift in mindset to purpose. Lives these days are busy and Erena Mikaere-Most and Te Pae Tata, fully grasp. time is precious, and we acknowledge Raewyn Tipene, Teresa Tepania-Ashton your willingness to stand up and be of MWDI, Ezekiel Raui, Terry Shubkin Thank you to Che Wilson for again heard on the two kaupapa that are the of Young Enterprise Trust, Titus Rahiri penning the mihi for this year’s report, subject of Māui Rau 2017 – leadership of Korum Legal, Sacha McDonald from and particularly conveying our respects and entrepreneurship. Ārewa, and Serena Fiso from Connect to someone who made a huge Global for the great work they do and contribution to Māui Rau in 2016 but is Interestingly, there was a lot less focus their willingness to share stories and sadly no longer with us. We leave you during the kōrero on iwi organisations inspire others. with the words of the late Awanui Black: compared to the previous year. Perhaps that has something to do with the We are extremely grateful to Harry mindset of self-reliance displayed by the Burkardt and Ngāti Kuri for allowing entrepreneurs we talked with. us the privilege of having their kaitiaki, “How can we just stay Māori? the Pupuwhakarongo Taua (the snail Let’s stay Māori and then When we looked at some of the key that listens for war parties) on the cover. do stuff from that base. messages raised last year around There is so much relevance for the courage, confidence and connectedness; Māui Rau kōrero. The Pupuwhakarongo Let’s not try and be anything these have been encapsulated by the Taua (also known as Pupu Harakeke) else; let’s just be Māori.” two focus kaupapa this year. The areas is the protector for Ngāti Kuri, warning of interest therefore warranted deeper them of approaching enemies by attention as we consider how to effect releasing a sound on a frequency So as you read through Māui Rau 2017, uplift of Māori well-being. only heard by the haukainga and let’s keep these words in mind. As we The case studies feature people who are allowing them to take the course of shapeshift to survive and thrive in this simply living their lives and playing their action necessary. We hope this report ever changing world, let’s consider part as we work toward a Māori Utopia, highlights the importance of having our how we do so in a way that keeps our a place where our people are simply well – own frequency to receive signals from uniqueness intact, enables our people as individuals, as whānau, as hapū, as iwi. our operating environments that allow to take flight, and sees the well-being The people we interviewed are leaders, us to respond rapidly in the interests of of our people materialise in the not-too- they are entrepreneurs, they are doing our people. This is a 3D printed version distant future.

12 • KPMG • MĀUI RAU KPMG • 13 As one contributor expressed, there is no single definition of leadership, nor is there a manual for it. They also noted that it is a concept that evolves What is out of a situation: “[Leadership is] undefined, fluid and to a large extent, it's doing whatever is needed at a particular point in time to achieve a particular outcome using whatever tools you might have.” It is this context within whichwe leadership? view leadership in this report.

“I think everyone’s a leader; whether you’re a leader of From the front, from the back, off to the side a whānau, or a leader of or hidden from view... these are all of the whatever; whatever you do, places that leadership takes place. and whatever role you do. I think if everyone knew that they were a leader, Views on what leadership is, and what then they would realise, oh makes a leader, proved to be wide- “It’s recognising the leader in actually, I am [a leader], and ranging as opened conversations. There wasn’t necessarily a common view about everybody, and that it can come my destiny’s in my hands.” leadership as a term, but ultimately there in all sorts of shapes and sizes Roundtable participant was agreement that there is no such and packaging; and everybody thing as a perfect leader. will have a valid contribution to For some, everyone is a leader. For others, it was those people who reach make. And so, their approach out to grow, nurture and empower might be boisterous, loud, others; while some saw the governors charismatic and enigmatic; and of iwi collectives as leaders. This latter topic evoked interesting responses other people will be really staid where clear lines were drawn and and quiet. But if you nurture and statements made that sought to clearly distinguish leaders from those occupying develop that over time, you end positions within iwi governance up with this groundswell, and structures. Many stated iwi governors you end up with this range of were not necessarily leaders. choices, and diversity as well.” While it was not easy to land on a Roundtable participant consensus view among the people we spoke to, there were some common themes as outlined on the following page that emerged about what they look for, or admire about people that they considered leaders. When we reflect on these characteristics, we quickly discover that they are just one layer within an interconnected and complex matrix that creates the fabric of a leader.

14 • KPMG • MĀUI RAU Trust To maintain authenticity and respect

Confidence Integrity To understand the To walk the talk value you create and focus on action and/or contribute to a vision

Demonstrate values and principles

Connection Humility To grow others, To be inclusive, be a follower and quiet, reflective create a following and selfless

Courage To seek out opportunity, tackle risk, embrace change or the unknown and challenge the norm

KPMG • 15 What does effective leadership look like?

Today’s leaders are the immediate beneficiaries of the effective leadership of the 1970s and 1980s. To characterise the leadership of an era that preceded any notion of Māori democracy, we saw individuals who took up causes to fight for rights and the uprising of movements to give momentum to various kaupapa, including land rights and language revitalisation.

As we fast forward, there is a completely Empower others Manage others different landscape requiring a different type of leadership that takes account of today’s complex environment. Our Pioneer Early follower predecessors were fighting to retain our identity and footprint, but now the challenges have extended to those Lead from the front Lead from behind of a social, cultural, environmental and economic nature. These require many different skillsets working in Challenger of status quo Protector of status quo complementary ways to give us the best chance at achieving goals on multiple fronts. It’s difficult to see a Outcome-focused Process-focused world ahead where we will rely on single leaders such as those we have Innovation-orientated Execution-orientated seen in our recent past. The key will be for all leaders to understand their strengths, and those Global focus Local focus of others, as we find our way in these turbulent times. Diversity and balance will also be necessary as different Transparent Protective strengths are brought to the fore at different times for varying purposes. Courageous Conservative The continuums on the right provide some food for thought as we consider where on the different spectrums Create space for others Protect space from others our leaders sit.

16 • KPMG • MĀUI RAU Hetet/Te Kanawa Collection

Reflecting on our leadership evolution, The leadership space will continue to we can see deliberate traces of foresight “It’s not about being tagged as evolve from generation to generation, where we have not just replaced but we must continue to inspire, mould leadership roles that already exist, a leader; it’s just about your and support the right mindset and but we have developed people who influence, and your ability to development of our future leaders so as can fulfil new leadership roles created to unlock their leadership potential. for a future time and place. Hence influence others; the ability to Our first case study of Kate Cherrington the emergence of technical leaders create opportunity for others.” is an example of someone living and within the fields of education, health, Roundtable participant breathing their leadership style every law and commerce. day, and how it has become a norm This leadership evolution is also seen within and among her networks and with the widespread conversation To coin a phrase, spiritual intelligence relationship circles. globally regarding the desire for leaders (SQ) – or more commonly known to to have high intellectual intelligence (IQ), us as wairuatanga – is becoming more emotional intelligence (EQ), and now evident amongst many leadership cultural intelligence (CQ). This represents circles. SQ can provide a means for deep “When I talk to managers a balance of technical skill, soft or people reflection, deep connection, rejuvenation, I get the feeling that they skill, and cultural or contextual skill. From creativity, confidence and courage, a Māori world view, we would suggest direction, guidance and purpose. The are important. When I talk cultural intelligence (CQ) is not only about practice of meditation globally has to leaders I get the feeling the awareness of and connection to your grown exponentially as one example of that I am important.” culture in a mental or physical sense, but how others embed wairuatanga in their also within a spiritual sense – ko te taha daily practices. As Māori, we value our Roundtable participant tinana, ko te taha hinengaro, ko te taha spiritual side and acknowledge the role wairua – the body, mind and soul. it plays in our lives.

KPMG • 17 Kate Cherrington A values based life

CASE STUDY

Nearly 20 years ago, of Māori Opportunity (AMO), which Another of Sir Mason’s goals, to see is part of a global indigenous leaders Māori act as global citizens, saw Kate Kate Cherrington had an network. These days, Kate works for and Bentham found the AMO network epiphany when listening to the Centre for Social Impact, sits on the back in 2003. It’s an inspirational story Waikato Conservation Board and the that began when they befriended Sir Mason Durie outline his Council for NorthTec, is a trustee for her LaDonna Harris at a conference. A goals for Māori education. marae Miria in Waiomio, and is involved Comanche woman who married a State with numerous other initiatives across Senator, LaDonna became politically His words have shaped Aotearoa and overseas. influential and founded Americans for Indian Opportunity (AIO) in 1970. her style of leadership It’s a hugely varied mix – and Kate ever since – and on one prefers it that way. She is drawn to “To me, LaDonna is an expression of memorable occasion, serve different causes that resonate at what it means to be values-based in your different stages of her life. leadership,” says Kate. possibly saved her life. “I never for one minute believe that any After LaDonna visited Aotearoa in one movement or organisation I attach 2002, Kate, Bentham, their respected As Kate recalls, she was at a conference myself to is going to be the single friends and kaumatua from Rangimārie in 2001 when Sir Mason delivered his answer to all the issues we face in the Māori Culture group launched the sister life-changing message. world. Different realities require different organisation AMO, and so New Zealand “They were three simple goals that solutions. I like to bounce in and out… became the first country to join the beautifully captured how I want to live and lead or contribute to organisations international ambassador programme. my life…what I aspire to for myself, my that I believe are contributing to the “We became family…literally, because family and my community.” greater good.” we’ve had several marriages and children The first goal was to have a strong sense After 20 years in the education space, between AIO and AMO ambassadors!” of identity as Māori, and to live that for instance, Kate recently felt compelled Although AMO ended in its formal authentically. When working in her many to “understand our connection back capacity in 2009, the relationships and varied roles, it’s something Kate has to whenua.” It was working at a food endure to this day. fully embraced. bank in Hamilton that provided a critical turning point. “We held an AMO reunion a few “I might be sitting in a council meeting years ago... and saw so many of our one day, and digging drains somewhere “The focus was all on making people ambassadors had become chairs or the next. But wherever I am in the world, budget on their benefit – instead of CEOs of their tribes. And they still draw and whatever I’m doing, I’m a Ngāti Hine helping them figure out how they can on each other from across the country woman 24/7. That never changes.” feed their families. That flicked a switch or across the world. Organisations can in me. Serving with Te Waka Kai Ora come and go, they are just bricks and Along with her husband Bentham, under the leadership of Percy Tipene mortar…but it’s those deep, enduring Kate helped the founders to build Te has been a privilege, and helping to relationships that we never let go of.” Wānanga o Aotearoa over a period of co-construct the amazing Kai Oranga 20 years. They were also instrumental programme with Te Whare Wānanga o in founding the group, Advancement Awanuiārangi, a joy.”

18 • KPMG • MĀUI RAU ON THE NEED FOR WISDOM ON BEING GUIDED BY YOUR IN THE WORLD: VALUES: “They were three

Kate believes values-based leadership Kate’s deeply-held leadership can provide a counterpoint to values are constantly guiding simple goals some of the reactive and volatile her on, ‘what to do, where to go, behaviour we’re currently seeing and how to behave.’ around the world. that beautifully

Once, when travelling in Bolivia during a “There’s a lot of noise in the world right project for AIO and AMO, Bentham, Kate captured how now. It’s become deafening, and where and the ambassadors were caught up in is the wisdom in it? What we need is a tense confrontation with community less reaction, more reflection, and more leaders that was based on a lost-in- I want to live purposeful expressions of leadership. translation moment. “My hope is that in 20 years’ time, our “We looked up and we were surrounded children will be expressing themselves in by militia. We knew, in that moment, my life.” that kind of way. And that we’ll see our that our leadership was being tested. communities having slowed down a little, “We asked to be given a moment to pray, and taking time to build their values.” and then we just sang our intent for Kate Cherrington When asked to define values-based peace and unity in our own language… Educator, company director, leadership, Kate says it is, “self- and suddenly that changed everything. leadership advocate leadership, or leadership of others, They understood us. We were able to Ngāti Hine, Ngāti Wai, Ngāi Pākeha that’s driven by the values of your express ourselves through our culture community and your own self-beliefs.” and our values.” Similarly, the world would benefit from What came out of a moment of fear and embracing tikanga-based models of misunderstanding transformed into a decision-making. community exchange of mutual respect, celebration and solidarity between cultures. “Making a decision based on a vote of 52% over 48% has never been a Māori Kate says that the same type of judgement way of thinking,” says Kate. can be used in any situation – or when dealing with any person or group. “We’ve lost the ability to make our decisions by consensus, because we’ve “I’ve been confronted with obvious been impacted by these other models racism, and all sorts of difficult situations, for 200 years. But we’re at a space now and I just continue to carry myself. It’s where we can say, actually our way works. about knowing who you are; and letting And not just for Māori; it works for all.” your values frame up your response.”

KPMG • 19 Māori leaders and global awareness

The global state of play is having an increasing impact on our lives in Aotearoa. Effective leaders understand how this is playing out, and the forces that bring us opportunity and cause us to confront challenges. Historically, there has been a stronger focus on the small micro, local issues that rightfully have prominence in respective communities. Now, it’s important to find DEMOGRAPHICS URBANISATION ways to continually feed in the macro, The world's population is expected Almost two-thirds of the world’s national and international information for grow to 8 billion by 2030. In developed population will reside in cities by consideration in decision-making. countries, people are having fewer 20301. Similarly 68% of Māori live in Included in the forces referred to above children and living longer. those regions with the highest urban are megatrends – significant long-term populations: Auckland, Waikato, Bay of social, economic, political, environmental Here in Aotearoa, the population is Plenty, Wellington, Canterbury and Otago. or technological changes that affect expected to reach 5 million by mid communities, societies, governments 2020s with the Māori expected to How do we take account of the and economies permanently. While make up approximately 16% at that well-being of our urban tribal there are many voices shining a light on time. However, we will be joined by populations? Should we be thinking different megatrends, there is a core the Asian population who are also about urban service centres? group of five megatrends that appear to expected to make up a similar How are we considering our tribal have widespread prominence. Some of proportion of the population. members living in the urban areas these may be more familiar to us than and overseas when we develop our While growth in the Asian population others – demographics, urbanisation, plans? How can we access tribal will be driven by migration, the younger globalisation, accelerated innovation talent that live in urban areas? Māori population and higher fertility rates and technology and environmental will contribute to the increase. impacts. An understanding of these megatrends will help our leaders better What opportunities will the ageing prepare for the future. In doing so, it population present for us to consider? may be timely to ask these questions How do our boards represent the of yourself and of your leaders. demographics of our iwi membership? What companies in our investment How are iwi organisations segmenting portfolios are taking advantage of these their populations to target initiatives? megatrends? How does our distribution Do budget allocations reflect policy reflect where the opportunities lie the demographic make-up? for our whānau?

1. European Union Institute for Security Studies. 2011. 20 • KPMG • MĀUI RAU “Citizens in an Interconnected and Polycentric World”). As part of developing a contextual view, today’s leaders now have to have a much stronger level of global awareness than at any other time in our history. In traditional Māori society, the tūtei was responsible for manning the lookout and scanning the horizon for any threats or challenges to the pā. Even though times have changed and the setting is different, the nature of the role seems more critical than ever.

GLOBALISATION ACCELERATED INNOVATION ENVIRONMENTAL & TECHNOLOGY IMPACTS Globalisation is shifting the economic power closer to Aotearoa, with the Advances in technology are changing Growth in the global population is placing rise of the economies of both China the landscape and bring opportunities pressure on the world’s natural resources and India. Yet, beyond Māori export to those prepared to leverage it. It also with demand for water, food and energy business, the focus of our collective brings threats to businesses who fail to increasing. We are also experiencing decision-makers is on local adapt and therefore to the jobs those climate change resulting in unpredictable communities and regions. businesses provide. Leading Māori weather patterns and rising sea levels. enterprises have identified this, and are Māori activities and relationships How might we use this shift to our taking advantage of this shift, but there include food production from farms and advantage? What are we doing to is still some way to go to extend this relationships with energy companies. grow global citizens? How might to the masses. Māori have always been staunch advocates globalisation impact us? What for the protection of water in their role as relationships are we building in What strategies do we have in kaitiaki. Whānau living around the coast markets where there is strong place to embrace innovation and are likely to be adversely affected by sea economic and population growth? technology? How are we using level changes and the need to relocate. technology to better engage with our customers and/or our tribal members? How might our own practices and What opportunities does the rise of relationships need to change in technology bring for our whānau, response, so we ensure we meet our hapū and iwi? How will advances in obligations as kaitiaki? What is the science and technology affect our net effect of our positive and negative Māori primary sector interests? impact on the environment? How Which industries that employ our could transport and climate change people are under threat of massive affect demand for our products from job losses? the land and sea? How might we influence the design of products, packaging and processes to have a positive environmental impact? How might Māori show leadership at the intersection of economy and environment?

KPMG • 21 Styles Leadership Adaptive A practical leadership framework that helps individuals and organisations adapt and thrive in challenging environments.

Representative Elected or appointed to positions to styles and represent a particular group of people. E.g. iwi or hapū leaders representing iwi or hapū members, or marae. With the advent of legal structures to govern, decisions are generally made by committee, where each person at contexts the board table has a vote. Values-based Individuals who chose to lead based on their own personal values and beliefs. They base their decisions on their values. Values-based leaders within organisations also connect the values of the organisation to their own and those In opening the leadership kōrero, we expressed of other individuals involved in order to get things done. that leadership can be evident anywhere and everywhere. the stories shared by our Distributed contributors demonstrated that reality, as we This is an informal style of leadership where leadership tasks are distributed have a complex environment with a vast matrix among others, with everyone working of leadership spaces and styles adopted over towards the same goal. The focus is to nurture what happens naturally (for time. The particular leadership spaces and styles example, on a marae). that were shared during our kōrero included: Collaborative Organisations (or iwi/hapū/marae), through their leaders working together for mutually beneficial goals.

Kaumafia A group of kaumātua taking a purposeful approach to selecting the next tier of leaders and making a way for them to come through into those positions accordingly. This recognises that new leadership challenges require a different set of leadership capabilities and experiences to overcome them. A more planned and designed approach to make room for this diversity will help the challenges to be overcome, and avoid being a drag on our development. We must continue to adapt and make room for diversity so that we don't act as leadership blockers.

22 • KPMG • MĀUI RAU Contexts

Consultative Authoritarian Whānau Invisible and Informal In traditional Māori society, a chief of the When asked what leaders they looked We know that leadership can occur in marae or a chief of a hapū wasn’t the up to and took inspiration from as a child, the background, indirectly and quietly; person who told everyone what almost all contributors named a whānau yet have a significant influence and to do; they were the person who took member first; whether it was a parent, impact on others and/or outcomes. the collective ideas and helped steer a nanny, a koro or another whanaunga. This was illustrated by the example them in a positive direction. In essence First impressions on a child in their of the Wahine Toa series created they ultimately facilitated a decision formative years seem to have lingered by Nancy Gilbert, wife of the former from the collective through a form through to adulthood. The values those U.S Ambassador. Most of the wahine of consultative leadership which was whānau lived instilled a high level of trust featured in that series were, ’quiet, followed by hapū members. in them, and these whānau members not known, and relatively faceless,’ seem to be the yardstick by which recognising that leadership can leadership was measured. occur without the formality of titles and positions. “Leaders identify those that Political make it happen, they’re not Another Roundtable contributor noted On the whole, iwi organisations are that: “the label of ‘leadership’ throws the ones that have to make driving towards a positive vision for people. It’s about how you influence that happen.” their respective tribal members. and create opportunities for others. Through the Treaty Settlement process, Roundtable participant Your sphere of influence might be another form of leader has arisen. two people, or 500 or more.” This is This leader sought to understand the effectively leadership by practice rather Crown processes and legislation, could than position. access the tribal history, and utilise that Our aspiration must be to build a knowledge to negotiate a settlement Marae diverse and deep bench of leaders as with Crown officials; while also every situation or context will inform navigating the politics of Te Ao Māori and On the marae everyone has a particular and determine what type of leadership New Zealand society as a whole. function, and you lead in your function, is required. Therefore as we grapple whether that be the kaikaranga, the Our post-settlement governance with the requirements of leadership for kaikōrero, or the kitchen boss. The structures look like Western structures, a modern community, our next case marae model was held up as a and many non-Māori assume that if you study Te Pae Tata (on the following successful application of collaborative have a particular title then you are a page), provides a wonderful example leadership where functions and roles leader, or you have a mandate similar to of individual, team and community are clear and everyone does their job comparable roles in western structures. leadership in action today. working together to achieve an overall This isn’t necessarily true. Contributors goal of ensuring that tikanga is observed talked about the danger of assuming and respected, and ultimately that title equals leadership, as there is a manuhiri are well looked after through plethora of leaders who lead in practice manaaki. This model of leadership has but without the title. worked effectively for centuries. To this day, certain whānau are still the lead for particular roles on the marae as it has been in their whānau for generations.

“Informal leadership is incredibly important, as there are more leaders who aren’t the ones out the front. The challenge with that is it’s not visible.” Roundtable participant

Tarnix Security – Ele Kelly (left), Tupaea Rolleston (middle), Nikau Nagels (right)

KPMG • 23 Counting the real statistics

CASE STUDY

If you’re serious about “That’s when we realised that if Information Act requests across various we’re going to make meaningful Ministerial portfolios. effecting change in your change, we first need to understand Armed with this all-important data, the our reality better.” community, the Ruapehu RWT plan was drawn up. It includes 23 Whānau Transformation And so they embarked on a targeted solutions to improve outcomes comprehensive research project, across five key areas – employment, (RWT) project offers two led by then-Pou Ārahi Che Wilson. health, housing, education and social key learnings. Firstly, Kirikowhai Mikaere, a former senior needs. Government statistician turned self- Although it’s still early in the journey, the it’s important to engage employed data adviser, was engaged results are speaking for themselves. to lead the research. your whole community – They opened the doors on Te Pae Tata, a both Māori and non-Māori. This involved a deep-dive into the brand new community-based technology Secondly, you need to unveil statistics for the Ruapehu rohe (which hub in Ohakune, in June 2016. includes the Raetihi, Ohākune, and “Te Pae Tata is a place-based education the real statistics and the Waiōuru communities). It was important centre…and that’s a concept that to gather specific data on those stories behind them. governments have been thinking about communities, says Erena, because and writing strategies on for the past 20 national statistics were simply too broad. The idea for the RWT plan was first years,” says Erena. “If we were to work off national statistics, planted back in 2011, when Ngāti Rangi “We’re a real example of actually doing it. we wouldn’t be having the impact we’re Trust held a rangatakapu hui to discuss Despite having no money, and not having having now, because we’d be looking at their post-settlement aspirations. “In settled yet…we’re just doing it, because the wrong things.” doing that, they prepared some surface- we know we need to.” level statistics for the region – and what The project used both quantitative As well as being widely used by the they found was a pretty stark reality,” and qualitative research. The statistical community, the hub hosted a Silicon explains RWT project manager, Erena findings were presented to the Maunga conference for Māori digital Mikaere-Most. Community Reference Group, who entrepreneurs prior to it’s official opening then provided the human stories “The median income for Māori was in May last year. And in another huge behind the hard facts. around $18,000 a year…our people were milestone, they have won a Ministry in survival mode.” “While we needed to understand of Education contract to help build a the black-and-white facts, we also national digital technology curriculum Erena says while there was plenty needed to hear the stories around from 2018 onwards. of kōrero at the hui that focused them…the kōrero from people on outcomes – launching a tourism “After three years, we should be making actually living that reality.” business here, and another business enough income to sustain our activities, over there – the underlying question of Also, to gain insight into the investment and then some. Those profits will be ‘how are we actually going to get there?’ Government was already making in the reinvested back into creating more remained unanswered. region, the researchers made 19 Official opportunities for our people.”

24 • KPMG • MĀUI RAU ON ENGAGING THE ENTIRE ON CREATING A TRUE COMMUNITY: COMMUNITY SPACE: “We needed to

One of the key factors in RWT’s The purpose-built Te Pae Tata success is the way Ngāti Rangi building is located away from involve the whole inspired the whole community to the central hub of Ohakune – and share in their vision. there’s good reason for that. community…

“Being a group of small towns, in a small Explains Erena: “People did ask us, why area, we realised early on that we needed don’t you build it downtown? But if we’d Māori, non-Māori, to look wider than just ourselves,” says done that, our people might think it was Erena. “We needed to involve the whole a business for the tourists and skiers. It community…Māori, non-Māori, everybody.” was really important to have a sense of everybody.” whānau, and make it a place for us, first When they called the very first and foremost.” Community Reference Group meeting, says Erena, “people didn’t really know And the strategy has paid off – with what they were walking into.” What whānau of all ages coming and going to Erena Mikaere-Most first got everybody into the room was use the space. Project Manager, Ruapehu Whānau the widely-held respect for iwi leader, Transformation Plan “We have some of the rangatahi coming Te Pae Tata Che Wilson. But what happened next up here to study after school. We ran a was a revelation. Ngāti Whakaue and Tūhourangi course for our kaumātua learning how “Each person got up and talked about to do techy stuff. Most of them wanted their relationship with our mountain, to learn how to set up their smartphone, Koro Ruapehu, and how long they’d been or how to check Facebook for photos of in the area, and what they did.” moko that live overseas. Now they come back in for whatever they need.” And when the vision for the transformation plan was outlined – Te Pae Tata also houses a recruitment everyone instantly knew they’d found agency that was developed through RWT, a shared purpose. where clients use the technology to become work-ready. “They all realised what it would mean for this place that they love. And that’s the “It’s getting busier all the time – and it beauty of it. We’ve got many different will be really humming when we develop people, with different skills, contributing our co-working space for entrepreneurs to a shared purpose. They all want their and digital businesses,” says Erena. families to be happy and thriving, for “Hopefully we’ll also have some rangatahi the economy to be booming, and the running their own companies. We might environment to stay healthy. They all want, need another building by then…” at a basic human level, the same thing.”

KPMG • 25 How do we grow leadership capability?

We ultimately determine the success of the future generation by what we do today – and how we identify, nurture and groom them for tomorrow. A quote from a 4th-century Chinese leader shared by one of our contributors is worthy of reflection: “The things of the past give us strong tradition but they might not be enough to prepare us for the future.”

Enabling inter-generational leadership So how do we make this happen? must happen by design through Below are a few ideas: both formal and organic means. Our —— One contributor remembered a contributors shared several overarching time where his uncles said, “get ideas, thoughts and experiences on how up boy, you can get up, because we should grow leadership capability; we want to correct you, we want enabling us to reflect our past but to be alive and see how you preparing us for the future. whaikōrero” as a means to awhi and teach his generation. Adopt a bespoke approach —— Another contributor shared the power Empowering talent does not happen of a leader who had the foresight overnight and it will take time. Therefore to see an opportunity; who had the we need to plan and tailor what we do to willingness to open the door and let Our contributors believe that these reflect the stages of a person’s journey them try something new that hadn’t safe spaces are only created where and the situation or environment. Our been done before. “He said, ‘you can like-minded people from both the older contributors believe that leadership do it’ to our young people. It was and younger generation come together development should start young, and an opportunity for them to practice to resolve any barriers that we develop any pathway (by formal design or being kaikōrero on the pae without for ourselves. natural occurrence) will require multiple the intricacies of dealing with those touchpoints to allow a person to build really tapu times like tangihanga; the Have the courage and confidence to self-identity, confidence and skill. times where you have to actually act and let go really concentrate on the tikanga that Create safe spaces to learn and you’re following.” Similar to the sentiments shared with explore us last year, it is believed that until —— Another example was, “purposely we can get succession right – up, Essential to any development journey is running paepae wānanga regularly. down and sideways – collaborate and the ability to have safe spaces to learn They’re teaching all the younger share knowledge, share resources, and explore. One contributor observed ones who want to know it and come and share expertise; we are failing the that safety in your own environment through; and so that’s how they’re next generation. should be a given. doing their succession.”

26 • KPMG • MĀUI RAU So it's a young person choosing the older person.” In this particular case the older person’s brief was to mentor their younger self: “You know now what you wished you’d known then and that’s the mentoring that you’re going to be doing.” There are many instances of our tamariki mokopuna being raised by their nannies and koroua – a contributor noted that the writing of the early settlers were always referring to the freedom and involvement of children. “They’re an interesting bunch these Māori, they have their children right in their meetings.” Rangatahi exposed and involved in decision-making!!! A sponsor within an organisation, network, iwi, hapū or whānau is another powerful enabler. “It's having someone One contributor believed that: “we’ve that sit. They don’t get paid; they sit already in that leadership space dynamic actually got a generation above us that is and observe and they see good and bad enough to awhi that person through. struggling; speaking as someone who’s governance practice, but they see it. And then make sure that the person trying to come through at the moment, They’re moulded and shaped. That used that’s receiving the awhi doesn’t get lost I can tell you now any idea or new idea to be the way things happened on the in it all and continues that succession that’s put on the table – is quite quickly pae. You bring in the younger ones to sit and continues that momentum.” shut down. They’re shut down when we in the second or third row and observe talk about iwi organisations; they’re shut and listen.” down because of personalities; they’re Identify and embrace natural talent Another contributor shared an shut down because of some historical “I shoulder tapped him because I saw experience and idea of: “the boys can matter that happened in the past. And potential in him and I thought that if we just be on the pae and just watch their while that stuff is all important as far placed him in there it would develop dad or watch their mum do a karanga; as consideration goes, it's blocking that potential.” When you see talent, stand up and be a part of the waiata in progress and advancement. It's one of what would you do? Another contributor a safe environment.” the most frustrating things that we deal suggested that, “even if they naturally with at the moment.” have those talents they still need to Utilise mentors, coaches and be groomed in some sort of way so One way to foster intergenerational sponsors that they can utilise those talents to collaboration is through understanding the full potential.” generational strengths. This was There was a belief that these leaders summed up in a kōrero about the two need to be interested in the other We support this suggestion and would different styles of leadership: “You’ve person's development, as well as add that one of the most impactful got the ones that set you up and prepare challenging, supporting or encouraging actions someone could do for another is you, and then you’ve got the ones them. One contributor described the to provide an opportunity to grow. who take it the next step further. The natural selection process involved in difference between the base set, being choosing a mentor: “(a) do you like the How we grow leadership capability the ones who in this context take control other person; and (b) is there a genuine will be different for each person, each of land or build that asset base; and the interest in me as an individual, that’s organisation and each community. We next ones are those who learn how to both ways; not just a mentor giving to agree with the suggestion from one capitalise on that asset base. We need the mentee and the mentee sucking it of our contributors that, “I would really encourage us to focus on, celebrate and to allow leadership through to initiate all up, but actually I might learn be open to stuff we don’t know.” those new ideas.” something from this other person and I can actually integrate that into And to quote Winston Churchill: Sit, watch, listen and learn my work and into my life.” “Success is stumbling from failure to failure with no loss of enthusiasm.” We Many examples were shared with us Another novel idea shared – and will not know if something is going to about the impact of being around leaders described by the contributor as one of work until we give it a go, learn, adapt and how through observational learning, the best mentoring programmes they and try again. inspiration can occur. One contributor had been involved with – was a type of noted that: “There’s one group that I reverse mentoring. “All of the new grads One organisation taking a deliberate know has a very clear succession plan come in and they have a big networking approach to developing their future for their governance board and they event and at the end of the day the leadership is Wakatū Incorporation, the bring in a certain number of candidates grads select who they want as a mentor. subject of the following case study.

KPMG • 27 Success in succession

CASE STUDY

For many organisations, Rōpata, who first joined the Nelson- “We need them to fully understand the based organisation in 2003, has seen legacy of Wakatū. This means staying succession planning can a significant change in Wakatū’s on a marae, and talking to our elders; be a somewhat fuzzy ownership demographics. so that when they join the commercial reality of the business, they have the “When I first started to coming along to concept. Not so for Wakatū right context and clarity.” shareholder meetings, the vast majority Incorporation. When it in the room were retired people and Wakatū has recently launched an comes to engaging their elders. But if you come to our meetings Associate Management programme, today, well over a third of the people are which is run along similar lines but future generations of under 30. And I think that’s testament to applies to management roles. Wakatū’s talent, the organisation the effectiveness of these programmes.” performance-based scholarship programme, which has been running brings a laser-like focus Similarly, it’s showing up across Wakatū’s since 2000, is also tightly aligned to the most senior appointments in recent years. to both its objectives future needs of the business. “Both the CEO of the Incorporation and the execution. “Our scholarship programme is and the CEO of our food and beverage about growing talent for the future business have come through our Rōpata Taylor, as Wakatū’s GM of of the organisation, rather than programmes; as have three of the People & Culture, heads the succession simply distributing a benefit or a seven current directors on the Board. So programmes. He says these are help towards fees.” managed in the same way as Wakatū that’s another test…when you go out to runs its commercial businesses – with a market, and find the people who have And once the relationship has begun, well-considered strategy and a great deal the best skills are actually those who adds Rōpata, “engagement is a critical of planning. have come through the process.” success factor for us.” “We’re very tactical and strategic about The purpose of Wakatū’s Associate Participants get involved in a range of it. We don’t hope for something to Directorship Scheme, which was first activities – including site visits, retreats, happen; hope is not a strategy. All our launched in 2003, is to grow the pipeline workshops, and social events – as well succession programmes are tailored of governance talent. They identify as networking with key Wakatū staff and to pre-determined outcomes we want a pool of successful professionals, Board members. Again, there is a strong to achieve.” aged between 30-45, and match them sense of purpose behind this. gainst the specific talent that the business “These aren’t just gatherings where we There are four main platforms for will require in the next 2-3 years. It’s bring a bunch of people together. They Wakatū’s succession strategy – a a two-year programme – they sit on a are bespoke engagements, with a well- scholarship programme, associate subsidiary board before being elevated to considered strategy behind every activity. directorship scheme, youth wānanga, the main board – as well as completing an and ahi kaa wānanga. Overlaying all this independent project that utilises their skills. “When it comes to succession planning, is a successful alumni programme which design is everything. Decide where But before they get into the boardroom, currently has more than 400 members. you want to land, and work back from says Rōpata, there is something they that point.” must do first.

28 • KPMG • MĀUI RAU ON THE IMPORTANCE OF ON MEASURING THE IMPACT: EMOTIONAL CONNECTION: “When it comes Unlike most corporates, the impact Good succession planning is of Wakatū’s succession programme not just about strategy. It’s is far from a simple tick-the-boxes to succession also about capturing hearts and exercise. For one thing, they need minds, and developing a deep to look 500 years into the future. emotional connection. planning, design

“Most organisations develop metrics According to Rōpata Taylor, kaitiakitanga around things like engagement levels is everything.” and a sense of ‘reciprocity’ lie at and communication and participant the heart of all Wakatū’s succession satisfaction – and we definitely utilise programmes. those,” explains Rōpata. Rōpata Taylor “But they are obviously very short-term “Yes, these opportunities allow people General Manager: People & Culture, to benefit personally and enhance their measures; and with the nature of our Wakatū Incorporation careers. But it’s much more meaningful organisation, we need look at things in Ngāti Rārua, Te Ātiawa, Ngāti Tama, than that. It also allows them to connect a far wider context. We have a five-year, Ngāti Koata to who they are as people…to contribute 15-year, 25-year and a 500-year plan.” to things that were started before they In fact, Wakatū is currently in were born, and build a legacy that will the process of agreeing on its last beyond their lifetime. And that’s intergenerational outcomes. really powerful.” “Other organisations might call It also starts at a young age. Wakatū’s it a balanced scorecard, but we youth programmes, aimed at ages 10 to don’t use that term. These are the 18, provide guidance on traditional values, intergenerational outcomes that all our language and culture; as well as helping business units are contributing towards rangatahi navigate career choices. over time. It gives us clarity on all of the Ultimately, says Rōpata, no-one can – or work that we’re doing, and why.” should – be bonded to their organisation. “You can’t force people to do things… then they’d just resentfully come on board. You need to inspire them, so it’s something they aspire to do, and they won’t be satisfied until they’re here.”

KPMG • 29 New age leadership

To be disruptors and leaders of change, we must be prepared to continually adapt into the potential unknown. We know that what may have served us well in the past will not be enough to enable us to reach our future aspirations. We have to take all tools available to us that are appropriate for the context we are in. It doesn’t matter if it’s a taiaha or a smartphone – if it’s useful for current times and can help in our pursuit of well-being and advancement, we must put it in our leadership toolkit.

These sentiments require us to reassess mana and diplomacy of tribal leaders, some of our status quo, in particular: together with the commercial nous required to be successful in business. Expectations of leadership This works both ways to lay a heavy In today’s society we have created burden upon those already in leadership these super leaders – a super Māui or a positions, and against those who super Moana, where expectations are want to contribute in some way but often far too high to attain, or they have feel they can’t because they either do been attained at the expense of the not live in their rohe or do not have leader or their whānau. Their health and Te Reo and tikanga. wellbeing suffer. When responsibility We don’t want to find ourselves in the is not sufficiently shared, it results in a position of losing leaders unnecessarily few individuals carrying the weight of as a result of this. Therefore we need the iwi or organisation, even if they don’t to take a holistic view to ensure our officially ‘work’ for the iwi. leaders are fully supported – across their There is an expectation (whether from physical health, wairua, mental health our people or self-imposed) that one has and whānau – while they are leading. to be active on the marae – whether it’s The responsibility of leadership is not in the kitchen (arā ko te teatoweltanga something that an individual can carry tērā!), kaikaranga, or on the paepae or on their own. Our leaders need support taumata. There is also an expectation around them, whether from whānau, that you should be immersed in tikanga colleagues, friends and others. and Te Reo Rangatira, while having the

Precious Clark, Te Kaa

30 • KPMG • MĀUI RAU Tall Poppy Syndrome broke traditions and went against the want people to be the same, rather than tide. Waiata, mōteatea and haka were excel, to the point that, while it would Kāore te kūmara e kōrero ana mo tōna composed about them. Our people not normally be spoken out aloud, people ake reka. wanted them and their feats to be would rather you fail than succeed, The kūmara does not brag about its remembered and honoured. because if you succeeded and they had not, that would reflect badly on them. own sweetness. One contributor agrees with this line This whakatauki has been interpreted of thinking and spoke of a tūpuna in Another contributor put it this way: “You in a number of ways over the years; Te Arawa: “We have tūpuna such as need to kill the tall poppy. Address it. You primarily that a person should not talk Te Koata of Tapuika from whom can enable them all, but if they don’t have about themselves, or celebrate their Te Heuheu requested a war party. the mindset, they won’t do it. You need a successes, as it’s perceived to be Te Koata’s response was Ahakoa teitei media campaign on killing the tall poppy, boastful. There is a negativity associated te maunga, ka piki. Ahakoa te nunui o te make it cool to win. Change the thinking, with talking about yourself or celebrating ngaru, ka pakaru e te ihu o te waka. therefore change the outcomes.” While your successes in life. Te Koata in essence was declaring his this contributor was talking in the context ability to conquer and be victorious in of entrepreneurship and enterprise, In that context, there is an expectation battle against the odds. That does not this is equally applicable to leadership. that our Māori leaders need to be equate with ‘humility and meekness’ .” New Zealand has an issue with tall ‘humble’ and ‘meek’. However when poppies and that is exacerbated within While many people state that they want we delve into our history for examples Māori society. In order to address that, we their leaders to be humble, we suggest of leadership we see rangatira who need to cultivate an aspiration to win, and that, what they really mean is they want challenged the status quo. They stood celebrate those who succeed. We need a leader who will be accepting of all up for something, which in turn meant to start sharing our stories of success and people. Tall Poppy Syndrome is alive and that they stood out. They weren’t the encourage others to do it too. ‘humble and meek’ leaders that today’s well in New Zealand society as a whole. society seem to be looking for. They The expectation from society is that we

KPMG • 31 Leadership for a modern age

We know that Māui possessed the ability to transform in order to thrive under a range of conditions and contexts while always holding on to his core values. Reflecting on the collective thoughts from the Roundtable discussions, we suggest the following faces of Māui would reflect and enable our immediate and medium-term journey moving forward.

We believe that we must aspire to cases, challenge our existing models achieve Maui Rau as a collective - and to grow and nurture potential along reflect the many faces of Maui across with the appointment, selection and our various leadership contexts. acknowledgement processes. The importance of diversity - in Our next case study Te Kāpehu Whetū experience, skills, knowledge and is an example of successful adaption thought - is globally recognised as a which ensured survival, the instilling driver of increased performance and of leadership values by design, and improved outcomes. This will require us the creation of a movement, now to be more inclusive, open and in some 20 years old.

32 • KPMG • MĀUI RAU Māui Tutu Māui Ako Curious in nature, The learner, committed with the skills to to lifelong development, explore, build, test, grounded with a specialist redesign, iterate. skillset but continually Likes to challenge exploring new knowledge and understand why. Māui Hono and information in the Māui Tiaki endeavour of excellence. The super connector, The guide, mentor and with the ability to coach, with the ability to navigate, link, influence, observe, teach, facilitate support and maintain trust and provide opportunities and confidence among many. for others to come through, within groups and one to one over a long period of time, potentially a lifetime.

Māui Hiranga Māui Ao The achiever, with the The global warrior, ambition to be the best and connected with our global to pioneer the advancement brothers and sisters, globally of their field, they will set aware, an advocate and at the new status quo for the forefront of sustainable the future way of doing, Māui Ora indigenous development. and create culturally sustainable enterprises. Who keeps in mind the well-being of their people (iwi/hapū members, employees, clients) and leads by example through looking after their own well-being and that of their whānau (taha tinana, taha hinengaro, taha wairua)

Drawings by Mitchell Hughes

KPMG • 33 Education for the real world

CASE STUDY

Back in 1997, when a The Trust now operates a string of early by the need to survive and think outside childhood centres in Auckland and the box.” group of Ngāpuhi working Northland; as well as two kura catering The Trust’s other big turning point, in for primary, middle and secondary school. mothers couldn’t find day- 2009, arose out of a different need. care for their tamariki, they Today, around 550 whānau are involved Raewyn attended a hui to discuss Māori decided to set up their with a Trust centre or school; and student under-achievement in Northland; Raewyn says that level of buy-in is a big where ASB Bank was pledging a pool own centre. Twenty years part of their success. of funds, and invited people to submit strategies on turning things around. on, that one centre has “A cornerstone of our kura is that we grown into a full-spectrum are Ngāpuhi…these are our children, “They probably expected us to do we’re all related – so on a very personal something in early childhood…but I’d education movement – level we’re committed to seeing them read a Ministry report highlighting the which includes one of do well.” terrible NCEA stats on our Māori boys. None of us had any background in Throughout its 20-year history, the Trust New Zealand’s flagship secondary teaching – but we pitched the has faced two critical turning points. charter schools, and the idea of the leadership academy, and it Raewyn recalls that back in 2008, the just grew from there.” extraordinary Leadership initial Centre had been running for Academy. seven years and its small team of five – Since its launch in 2009, the Leadership including volunteers – were struggling. Academy of A Company (see story on the right) has grown from strength to Raewyn Tipene, chair of He Puna “I was working in Wellington and had strength. This success led to the Trust Marama Trust, still recalls that to come back in weekends to work at opening one of the country’s first charter gathering of four friends ‘over a the centre. My partner and I would be schools – Te Kura Hourua O Whangarei cuppa and a muffin.’ there literally cleaning out the sandpit… Terenga Paraoa – a Māori boys' it was unsustainable. So I went to our “There were a lot of us coming home secondary school in Whangarei. having completed degrees or worked little team and said, how about we hand overseas…and we found things were this over to an organisation with a bigger Those boys are now achieving above- pretty tough here in Whangarei. We infrastructure that can look after you average in NCEA results; and there are were sitting in my office one day, guys better. And they all said no – they thousands more about to follow in their moaning there was no-one to look after wanted the Trust to keep going.” footsteps through Te Kāpehu Whetū. our babies while we worked full-time. “So we crunched the numbers, and “We now have this pipeline of education So when we set up that first centre; it decided that if we were going to survive, right from early childhood, through was really about making the education we’d have to have more centres. We to secondary; where our kids can landscape better for our own kids.” now have five centres in Auckland and experience both full immersion and Today, Raewyn’s children are all grown Northland, with a sixth on the way. bilingual teaching. Our strapline is, up – and so now is the education So although it became a successful “Tū ki te Marae…Tū ki te Ao”…and our movement they helped to spawn. business model…it was originally driven kids really personify that.”

34 • KPMG • MĀUI RAU ON YOUNG MEN BECOMING ON NURTURING LEADERS: ENTREPRENEURSHIP: “Our strapline is

They could have called it the The Trust’s educational Leadership Academy of Ngāpuhi, philosophy is all about turning ‘Tū ki te Marae… or the Leadership Academy of Te Tai learning into an engaging process Tokerau. But in deciding on a name, with real-world applications. says Raewyn Tipene, they were Tū ki te Ao.’ And looking for ‘something bigger.’ For instance, they were building a café at the school – and have tasked the Year 13 our kids really And they found the perfect legacy in the business students with designing it. courageous men from A Company of “That’s an example of how we can make the 28th Māori Battalion. “Every Māori education a real, living process,” says personify that.” family in Northland has a connection to a Raewyn. father or grandfather or grand-uncle who “That’s far more valuable than just reading was in the Battalion. We made it about Raewyn Tipene these boys looking up to these men about it in a textbook.” Chair of He Puna Marama Trust/ and emulating some of the qualities and Rangatahi Inc is the entrepreneurial Te Kāpehu Whetū values they had. It grew a life of its own programme run through the Ngāpuhi and we had families lining up to accept partnership school, Te Kura Hourua O their sons in the academy.” Whangarei Terenga Paraoa. Again, it The boys don’t become leaders overnight, provides practical support – providing says Raewyn. It’s a process that takes networking, advice and back-office years of what they call ‘the daily grind’ support – so rangatahi can focus on their of instilling military-based self-discipline breakthrough business idea. and values. “After they’ve been with The programme is currently supporting us 4-5 years, they just espouse those three former students, in their early 20s, leadership qualities…and their families who are launching a start-up. Called can see it in them too.” Native B&B, it’s a global portal linking up And although all the original soldiers travellers with indigenous communities have now gone, their presence is very throughout the world. much alive. “We’ve always said the 28th “Our young people have got all the verve, have their hand on the Academy. Things ideas and the passion,” says Raewyn. beyond our influence are constantly “Our job is to provide the processes and happening, and difficulties disappear… the networks to help them along.” we know it’s the men reaching through and helping us along. We often say, ‘the men are here’.”

KPMG • 35 PART TWO Leadership by entrepreneurship

Kia Māori Kia Mātau Kia Tu Rangatira ai!

The articulation of these pou of Te Kura We acknowledge that charter schools into their own hands, understand their Hourua o Whangarei Terenga Paraoa/Te remain a topic of debate. Regardless, strengths and weaknesses, understand Kāpehu Whetū speak to the aspiration this is a story of leadership that is their environment, pull a team together for the young people of this kura. There prepared to try different approaches and then back themselves. They use is emphasis on students leaving the in pursuit of a brighter future for their Māori superpower of instinct and kura with a strong sense of identity and our tamariki. relationship building. high capability within Te Ao Māori; while None of it is easy; it requires hard work also having the skills and knowledge The Future and sacrifice, and it is not for everyone. to suceed in a globalised world, along But the impact that entrepreneurs with the character and mindset to apply That future for Māori needs to include can have for their whānau and their themselves. The kura has developed a stronger emphasis on entrepreneurial communities goes well beyond simply an environment that is fostering a thinking and developing a mindset of being known as successful business competent, capable, confident, inquiring self-reliant whānau. Our entrepreneurs people. They employ members of their and innovative next generation. Whether are the ones who break free from the communities and their families, they conscious or not, they are developing shackles of convention and display a grow and develop people, they inspire the traits of entrepreneurs and are an willingness to explore, to hunt, to hustle, others and they paint a real picture of example for many to look to as we to be self-determining and responsible what is possible with focus, dedication consider how to develop the pods of for their own success or failure. and hard work. They do so without the prosperity throughout the motu. This is layers of bureaucracy that all too often an example of leadership, challenging a They do not wait for the next pay day, stop us in our tracks. norm to set up a charter school at a time the next government funding drop or the when there was an outcry against them. dividend round. They take their destiny

36 • KPMG • MĀUI RAU Analysis of this simple quote suggests that there is a close fit between this definition of entrepreneurship and Māori.

a creative pursuit with the flexibility to adopt different approaches and the ability to explore, techniques for a test, learn by doing and given context experiment again

“Entrepreneurship is the art of finding profitable solutions to problems.” Brian Tracy

financially sustainable a chance to bring for all of our history, Māori have learnings from history consistently overcome some and different perspectives extremely tough problems to bear in the pursuit of finding ways that work

KPMG • 37 Inspiring Growth Entrepreneurs come in all shapes and With over 70% of Māori assets sitting As Māori are in the strongest forms, from varied backgrounds and in private hands outside of the collective economic position since pre-Treaty from all corners of the motu. They often entities, there is significant potential if times, now is the moment to delve have fantastic stories of their journey we are able to close the gap in business into the entrepreneurship kaupapa to date and are great at getting back up participation rates between Māori and and consider its place for Māori more times than they get struck down. Asian and NZ European populations. within both the collective and They are resilient, they persist, and they whānau contexts. don’t take no for an answer. Instead they find a way over, around or under – rules are simply guidelines! Māori participation in small They provide a glimpse of a future where business is significantly lower whānau are employing and inspiring than that for New Zealand. Self Employed their own and others across a range of industries and geographies. We look to Employers a time where there are very low levels of dependence on the government, when our involvement in small business mirrors that for the country, and where Percentage of Self Employed and Employers by Population Group the number of Māori small businesses employing more than 20 people grows. 14% Eventually, our entrepreneurs become a reference point for that young boy 12% or girl considering their own future. Entrepreneurs leave lasting legacies and instill pride in their communities. They are recognised once they’ve 10% made it, but often struggle for support along the way and have to rely on their own inner fire and close supporters to 8% keep them going. We need to change this story if we are to grow Maori entrepreneurial success. 6% For some, 'profit' is a word that doesn't sit well. Yet from our perspective, profit is an essential means to a greater end – 4% and is fundamental to organisational sustainability. Without profits, there cannot be any reinvestment and 2% further job creation and in fact, the organisation will simply not survive. At its simplest, it’s the fuel that keeps the engine running. 0% NZ European Asian Māori

38 • KPMG • MĀUI RAU Māori Workforce Projections – 2015-2033 Potential If we were able to increase the percentage of Māori who are 500,000 employers or self employed, there could be significant uplift 400,000 in both numbers of jobs created and the revenue associated with this growth. 300,000

200,000 Employed

Self Employed 100,000 Employers

0 2015 2018 2021 2024 2027 2030 2033

Revenue by Māori Enterprise – 2015-2033 Potential $bn 40

30

20 Small-Medium Enterprise

Micro Enterprise 10 Self Employed

Iwi Enterprise 0 2015 2018 2021 2024 2027 2030 2033

KPMG • 39 Why Enterprise? Stating Expectations Entrepreneurship Culture Successful enterprises create jobs for Decisions made in the 1980s saw the The long-term outcomes of proactively employees, reward owners for their wave of Māori lawyers come through building a culture of entrepreneurship risk and contribute to society through in the 1990s to help with the Treaty of are that we will develop the collective taxes. As small businesses become Waitangi claims process. Soon after the mind sets necessary for our people to medium sized businesses, they invest in accounting graduates followed with plans turn their talents and experiences into expansion including further job creation. for them focusing on managing tribal real opportunity, and move many from With many Māori collective entities assets that were to be received over the dependence thinking to a mode of having aspirations for higher rates of next 20 years. These were the direct self-reliant whānau and interdependent employment, there are multiple ways of result of forward planning. If we want to networks. This is no easy feat and one achieving this. Most of the approaches see a culture of entrepreneurship that is that requires intergenerational patience. we have seen to date focus on pervasive, it’s time to set and state the Yet the benefits of such investment identifying opportunities for job seekers, expectation of what’s important for the (in time and resource) to effect this rather than on developing systems next generation. shift in self-belief and achievement to grow the number of Māori job and will be extremely rewarding for those opportunity creators. Imagine the impact individuals, their whānau and society of our predictions noted on the previous as a whole. page for whānau. “Culturally, if you compare us to say the Americans where If more whānau determining their Every society needs both workers and own destiny is a positive thing, job creators to function effectively, but they would expect their best then developing systems to foster our ability to effect improvements in and brightest people to be in entrepreneurial thinking among whānau household incomes will be driven by the business for themselves. They’re must be a priority. There are already extent to which businesses are highly pockets of this within our communities productive, profitable and successful. encouraged to be great business where we see examples of successful An eye on growing the collective people; not to become doctors entrepreneurs who didn’t fit the ambition, attitude and capability to standard channels in life such as school participate in high-value industries and lawyers and accountants, and university. Their success compels is a must if we are to effect the which is what we tend to do.” us to explore how they did it and transformation we seek at a household Roundtable participant showcase their success, especially to level, particularly those affected by those of our people who may have had today’s poverty and inequality. similar backgrounds. There is a wero or challenge in this quote which asks us to explore how “The real solution to the problem we develop a culture of entrepreneurship, “In my experience, poor people of poverty consists in finding of problem solving, of pursuit rather are the world’s greatest than defence? how to increase the employment entrepreneurs. Every day, they and earning power of the poor.” must innovate in order to survive. Henry Hazlitt They remain poor because they do not have the opportunities to turn their creativity into sustainable income.” Muhammad Yunus

40 • KPMG • MĀUI RAU Below are some examples of Māori-owned businesses, who are showing the way for many others.

Top: Teneya Ngata Photography Middle: Haka Boy Films Bottom: Papa's Kombucha Top: 4MD Solutions Top: Kōtihi Reo Consultants Middle: Tarnix Security Middle: Body by Paris Bottom: Te Pae Tata – Ruapehu Bottom: Te Kaa Community Hub

KPMG • 41 Have more control over your destiny Being able to call the shots and make the decisions that ultimately determine the success or failure of your business. Why Also being able to dial up or dial back your effort as you see fit.

Have more control over your time and workspaces Entrepreneurs have the ability to adjust enterprise? their schedules to spend more time with family or other hobbies. Some have more control over when and where they work.

Ability to turn your passion and beliefs into a business and earn a living doing what you love These entrepreneurs go out on their own Every entrepreneur we talked to had a different story to pursue something they passionately about their motivations in starting their business. believe in. Some knew from very early on that they wanted While money was important, the stronger motivator was the ability to to work for themselves, while others experienced do what they loved while earning a living: the loss of employment forcing a change. There a win-win situation. were also many references to pursuing business There is no age barrier ideas while working for someone else (side hustles) Unlike standard employment, there is no before deciding to take the entrepreneurial leap. age barrier to becoming an entrepreneur. One contributor started a business while at high school, while others started later in life.

Satisfaction of being a business Being in business takes courage, To achieve their vision belief, resilience and a healthy dose owner and serve as a role model Those who have a very clear idea of of persistence. It isn’t for the As an entrepreneur, people will look up the impact they wish to make on the faint-hearted. When we posed the to you. You have the ability to be a role world see business as the way they can question, “why go into business” model for family and friends, and your achieve that, through both commercial we had wide ranging responses and success can be a source of motivation and social enterprise. overall these were positive. Yet some and inspiration. reflected on their experience and shared they may have made different To build an intergenerational legacy Creating a successful brand to the point where it leaves a personal legacy choices if they knew at the start of their Some wanted to show their whānau business journey what they know now. also serves as motivation for many that there is more to life than simply entrepreneurs. Dealing with business partners and having and keeping a job. They wanted staff posed some of the toughest their businesses to be real life learning Opportunity to give back challenges in business. for their tamariki and mokopuna and to create a new norm and expectation. Owning a business provides the Despite the hard work, risk and They wanted to show what is possible opportunity to support local charities challenges that come with being in when you apply yourself. and not-for-profit organisations, local business, there are many different schools and your community. motivations behind why people took Didn’t know anything else the plunge, persevered, and remain in business. We share some of the For those who had grown up in whānau main reasons here. business, it was the only way they knew and all they had expected.

42 • KPMG • MĀUI RAU Why enterprise for iwi collectives?

As well as the potential rewards for small businesses, there are also benefits for Māori collectives serious about economic well-being for their whānau.

Develop New Tribal Norms Te Oranga o te Whānau Improved Access to Industry Information By making it acceptable to talk about Whānau can work together and use business, finance and money within their collective resources astutely to Information and insights can be the homes of whānau members, achieve their goals faster, and provide shared between the iwi entity and over time attitudes toward financial the iwi with a growing body of insight the iwi member businesses, in order matters will shift. There will be a and information about how to grow to improve awareness of the trends growing curiosity and interest in strong whānau businesses. affecting businesses. exploring business as an option. Mana Motuhake Job Creation Grow Tribal Business Literacy Whānau develop a sense of self-reliance More jobs are likely to be created Improved business literacy among and freedom of choice, and understand through the network of iwi member whānau will lead to an increase in that they are in control of their own businesses than those that the pool of available people to help destiny. They gain a deep understanding would be directly created in the with managing and governing tribal of how their own actions will determine iwi entities themselves. entities. It will also bring a stronger lens their success. on accountability as confidence and Reduce Risk understanding in financial matters grows. Improved Access to Opportunities The iwi can enable and facilitate Inclusive The iwi can become a super connector opportunities for iwi members to for its tribal enterprise community and develop their business skills and Entrepreneurship is an option that is build deeper networks into the industries experience over time, without not dependent on how well an individual and businesses of iwi members. This necessarily being a direct investor has done in the formal education system. provides iwi with more insight across a in the businesses. There are many stories of people broader range of industries and potential who didn’t fit the standard systems access to further opportunities for its of education and employment, yet people. At a tribal level, the iwi will One organisation focused on growing have gone on to achieve outstanding be more informed and better able to Māori financial and business literacy is feats in business. advocate for whānau business issues Māori Womens Development Inc, the with the government. focus of our next case study.

KPMG • 43 A youthful perspective

CASE STUDY

They’re inquisitive, Today the MaiBiz programme is delivered The ethos of all MaiBiz programmes to around 1,500 students (in at least 20 is to encourage young people to innovative and bold – three schools) each year. It is targeted towards embrace their innovative, creative and key attributes needed to low-decile schools or those with a high experimental side. It’s the exact opposite population of Māori students. of the theoretical book-learning of become an entrepreneur. traditional business studies. “We don’t necessarily expect them to set That’s why Teresa Tepania- up a business immediately after leaving Says Teresa: “By the time you get to Ashton is passionate about school,” says Teresa. tertiary level, you’re being forced to learn someone else’s perspective on business; “But if they do have an idea in the future, ensuring young Māori get a as opposed to finding your own footing. MaiBiz has taught them how to write taste for business early. I’m a believer in the power of creativity… a business plan, and given them a having an open wānanga where it’s all good practical understanding of what’s Teresa is the CEO of Māori Women’s about talking, sharing and exploring.” required to run a business. We’re future- Development Inc (MWDI), which has prospecting our youth, and helping them Another attribute that suits young Māori sponsored the MaiBiz youth business become business-savvy, so that avenue to a life in enterprise, believes Teresa, programme since 2007. She explains the is always open to them.” is their natural whānau whānui approach original driver: to learning. Although MaiBiz is primarily aimed “Our trustees saw a gap in the market at Year 12 students, there is the “It’s an innate part of being Māori – back then, particularly around business ability to transition the programme to and collectivism is integral to being education for our youth. We’re all about all age groups. successful in business. No great supporting wāhine Māori and their enterprise was ever created by an whānau in business…and we absolutely And for graduates of MaiBiz who show individual working alone.” saw value in starting them earlier. The a real appetite for business, another younger you get them inspired about level of challenge is provided by the business, the more appetite they’ll have.” week-long accelerator programme, Te Wero Pakihi. They work with a corporate In fact, Teresa is a firm believer that organisation – the most recent one was you’re never too young to start a The Coffee Club – to fulfil a business business. brief provided. “Any idea is a good idea, as long as you “The Coffee Club set a challenge have a market. When they’re young, around brand awareness, where our our kids don’t see any barriers – and so kids had to conduct research within they’ll just keep going and exploring, if a key demographic and report back. they’re allowed to. We call them our The feedback was that our kids were Māui tiki-tiki…he was the intuitive one, pretty much spot-on in terms of their the trickster, and challenger.” recommendations; they were as credible and professional as anyone.”

44 • KPMG • MĀUI RAU ON THE TIME-BANKING OF ENTREPRENEURSHIP THROUGH TALENT: THE GENERATIONS: “The younger

What if there was a way to match Teresa first discovered the joys of up rangatahi with experienced entrepreneurship as a young girl. you get them mentors in industry – and it didn’t In 2016, she was recognised with cost anyone a cent? Teresa Tepania- a Queen’s Honour for services to Ashton has thought of a solution. Māori and business. inspired about

MWDI already runs the Hine Timebank – Growing up, Teresa learned that business, the which facilitates the trade of skills, business ownership was something to knowledge and time with no money aspire to. Her Dad worked three jobs in changing hands. Members earn order to fulfil his goal of starting his own more appetite ‘timebank credits’ by providing services tree-doctoring business, which quickly to others, and can then spend their became a family affair. credits to get help with their own needs. “My brothers got involved in the more they’ll have.” Teresa can see how a similar concept manual side, and I helped my mum with could work for youth. Rangatahi working the paperwork. I was given a type-writer on a business idea could swap their when I was about 11…I loved speaking time with experienced mentors who can with clients, taking orders, and being Teresa Tepania-Ashton (MNZM) provide guidance and advice. able to have that interaction with people CEO, Māori Women’s Development Inc; at a young age. and sponsor of MaiBiz “We’d just need to bring a number of Ngāpuhi, Ngāti Kahu ki Whaingaroa, businesses together, who were willing “The business was part of our daily Te Rarawa, Ngāti Kuri, Te Aupouri to ‘give-a-little’ of their time, and form discussion; it was something we talked a network that we could make available about around the table. I’d seen my Dad to youth. The young people could credit fulfil his own dream, which showed me their time back to the organisation with that anything is possible.” All Teresa’s projects suited to their capabilities – siblings later went into business such as research, or digital marketing.” themselves in some capacity. Similarly, her daughter launched her own part- Importantly, it should be the kind of time business at the age of 19. And it mentoring that encourages a free-flow of looks like her 4-year-old grandson could ideas and exploration. have what it takes to continue the family “It’s more about empowering the legacy into another generation. “His students to bring their solutions to the big word at the moment is ‘why’,” says table…instead of having adults telling Teresa. “And I tell my daughter and son- them ‘this is how it has to be’.” in-law to really encourage that…because that’s his natural inquisitiveness shining through. That’s where it all starts.”

KPMG • 45 Growing our enterprise footprint

We had some very stimulating and exciting kōrero around how to grow the Māori enterprise footprint.

The key themes that emerged were Scheme (see page 50). This programme to plug into the full range of training but around educating, engaging and involves real life experience using real we found there was a low level of uptake connecting entrepreneurs. Consistent money, requiring real decisions and by Māori for two reasons: feedback from contributors was that a risk management conducted over the 1) low level of awareness of what is one-size-fits-all approach was unlikely school year. available; and to succeed, and many of the support Startup Weekends and other condensed systems available were too rigid in 2) cultural competence and capability business competitions such as that run terms of access and delivery models. of some providers resulting in poor by Ārewa (see case study on page 56) customer experience by Māori provide a place to take your ideas, test businesses. Early Exposure and Education them out through market validation and is Key potentially start generating revenue We believe that consideration As mentioned in last year's report, over the weekend if the concepts test should be given to some integration becoming more fluent in the language viable. These are all low-risk, immersive mechanisms that help build the of business and exposing our tamariki experiences that play a huge role in confidence of Māori to engage in and rangatahi to this at an early age developing a taste for entrepreneurship existing programmes and initiatives. is crucial to developing a pipeline of early on. Furthermore, for those collectives budding entrepreneurs. But knowledge focused on enabling economic growth on its own isn’t enough, and practical Build Capability for their people beyond the iwi experience will help embed the learning. organisational structures, developing Contributors mentioned the need to do For primary schools there are online close working relationships with more in developing business literacy, programmes such as KidsCoin and business education and development given this is a key skill that keeps people Banqer. Organisations such as MWDI organisations (such as Young in business and underpins any growth and the Young Enterprise Trust also Enterprise Trust, MWDI, accelerators, aspirations. The problem to solve for facilitate programmes for schools incubators and regional economic Māori in this area is the access to, rather through programmes such MaiBiz and development agencies) will keep them than the availability of business capability Te Wero Pākihi (see case study on connected with what is going on. training. There are plenty of opportunities page 44) and the Young Enterprise

46 • KPMG • MĀUI RAU Address the Isolation through The younger generation of entrepreneurs Embracing the open-source peer-to-peer Connectedness we spoke to were more inclined to concept by both businesses and those catch up as a group in informal settings organisations who hold their contact A common theme was that many of rather than be part of a formal network. information is something to consider on the business owners we talked to felt In other areas we saw grassroots a region-by-region basis. a sense of loneliness. They weren’t movements where cities, regions and comfortable talking with the people who communities are building ‘ecosystems’ Organic Approaches they worked with (their employees), of entrepreneurial innovation to their whānau and even, at times, their generate new businesses and jobs The most successful networks were business partners about some of the within different areas of Aotearoa. where the entrepreneurial environment issues they were encountering. They had a more organic and dynamic quality, often felt relief when they found other Open-source the Database rather than having a planned linear business owners experiencing similar progression adhering to a set formula. issues and on occasions were able to Many expressed interest in an open- As in the context of entrepreneurship, work through things together within a source database of Māori businesses diversity is crucial: in backgrounds, safe and trusted environment. in their towns, cities and regions heritage, perspective, skills and to facilitate direct contact between experiences. It is the mixing of these Māori business networks are great business owners. There are many attributes in unexpected ways that examples of how these businesses databases that contain information that makes these ecosystems more dynamic. find each other. However, they often would help this purpose. However most Furthermore, rather than meeting for rely on the energy of individuals rather are centralised with various government meetings sake, people were forming than systematic approaches to sustain and non-government organisations, teams to work on specific projects them. Where we saw sustainability of some of which are unable (or unwilling together and then disbanding once the these networks in action was where in some cases) to share information, projects were concluded. This meant the network extended beyond Māori citing privacy considerations. that there were opportunities to learn businesses, and included entities such as from and support each other without the tertiary institutions with the resources, need to formally convene networks. funding and operational capacity to administer the network and run events.

KPMG • 47 Locate the Mentors and higher value opportunities, and we Ultimately, they need time, resource, will only get those if our businesses are knowledge and support; and they often Contributors were also unanimous serving markets of a size that faciliate don’t have them all at the same time or about the positive impact of mentors business growth. in the right quantities. If we are to grow for their businesses, but mentioned our footprint, it follows that we need to how difficult it is to find good mentors, have access to all of these along with especially Māori ones. Those mentors Think Market First then Business Model the mindset to push on through the who had “been there and done that” inevitable tough times. A finely-tuned offered great advice and guidance based Many entrepreneurs go into business sense of intuition would be helpful too. on actual experiences (successes and with a product/service-first mentality failures included) providing value from a and follow a push rather than a pull There are many parts to a functioning practical standpoint. Mentors acted as a strategy. They develop products or enterprise ecosystem as outlined on sounding board and offered a different services because they believe that the the next page. While we don’t have a and fresh perspective, which was highly market will want what they have to say over government policy and the appreciated by the business owners. offer, without having first understood regulatory framework and infrastructure, these are reasonably enabling in Mentors facilitated introductions into the market opportunity before them and the demand. Unfortunately this lack of Aotearoa but could be tweaked to be their own networks and opened doors to more effective for Māori. Our focus potential business partners, customers planning is one of the reasons that small businesses fail. should turn to some of the other parts and decision-makers, something very of the system, starting with culture. difficult to do without mentors. They Spending time, effort and energy were also called on to help directly understanding the market and drivers The following case study outlines one or through referrals with some of of customer behaviour and how your opportunity for Māori to engage and the common issues encountered by business offering fits in the landscape connect with an organisation that is businesses, such as employment issues. will be time well-spent. The challenge doing its part to grow the culture of then is to find a business model that entrepreneurship in Aotearoa, and at A key role for the mentors was to help the same time achieving outstanding mentees develop their confidence and will meet the needs of your market in a profitable way. results for Māori participants. It’s a deal with doubts that were getting in the great reminder that we don’t have to way of their progress. Summary do everything ourselves and there are systems outside of our own where Grow the Ambition and Attitude At the heart of it, entrepreneurs are tamariki are achieving excellent results. On the global stage, Aotearoa is a simply problem solvers who are able to very small market. If we are to truly answer yes to four questions: fulfil our potential, we will need many 1) Desirable – Do enough people more Māori entrepreneurs with growth identify they have a problem to ambitions. It’s fair to say we spoke with warrant them looking for a solution a lot of lifestyle business owners who they are willing to pay for? were content and happy with where they are at, and understandably wish 2) Feasible – Do I have a solution and to remain there. However we also does it actually work? spoke with some who definitely have 3) Viable – Can I deliver my solution their eyes on the international scene profitably? as their marketplace. 4) Believable – Do I believe in myself The reason this is important is because and my team to make this work? we need increased employment levels

48 • KPMG • MĀUI RAU Adapted from the Entrepreneurial Ecosystem Mazzarol 2014

Government Māori Collective Policy Entities

Regulatory Funding Framework & & Finance Infrastructure

Human, Capital Entrepreneurial Culture & Workforce Ecosystem

Education Local & Global Markets & Training

Mentors, Universities Advisors as Catalysts & Support Systems

KPMG • 49 The future of entrepreneurship

CASE STUDY

Ezekiel (Zeek) Raui looks “What I discovered was that business to make improvements within business is about helping improve any given and non-business settings. It trains back at his old school, situation through products and services, rangatahi Māori to be critical thinkers.” for people and for communities.” That’s Taipa Bay Area School with “One thing YES does so well, and the what got Zeek excited about and reason I believe in them is that they pride and gratitude in his involved in two businesses. The first help transition ideas from your head, get running events for a local charity, and the heart. Pride in knowing them out on paper and then turn them second developing a peer-to-peer toolkit into something.” YES teaches action that he has helped changed for mental health. and what it looks like through strategy, the norm for the teina Zeek didn’t set out to do ’social marketing, production and finance from following in his footsteps, enterprise,’ but admits that he can’t do a 101 level. “They give us the tools to do and gratitude for a teacher anything without thinking about how his something about any idea that pops into product or service has a positive impact our head, whether that’s in business or who paved the way for his on the community in one way or another. beyond.” He is also clear that sustainability and entry into whole new area. “In our community, this interest in consistency in business is absolutely business is like a new found rongoa important. We must look after ourselves Zeek’s social studies teacher knew little among the rangatahi. This kaupapa has if we are to look after anyone else. about business, but saw her students pretty much blown up with our peers, Where people don’t do this, their fire had some incredible ideas and felt there our teina and those who followed us gets extinguished a little early or they had to be a way to bring them to life. through kura. They saw how much we run out of puff without considering their She reached out to the Young Enterprise got out of it, how much we learnt and personal needs and health. Scheme (YES) to connect the students our ability to give back after creating to the world of business – a completely “Operating sustainably and consistently a sustainable business or concept foreign concept given that the students is definitely the difference between a for ourselves.” didn’t grow up in homes where business business that does good and one that Zeek is a role model for those in his was openly and regularly discussed. does great. It’s important as Māori in community and following in the business that we understand that we “I thought business was all about making footsteps of his own role models and need to keep refilling the cup – or at money and doing everything in your mentors – all people of purpose, using least keep it half full!” power to get where you want to go, business as a vehicle to drive better sometimes at the expense of others, “The YES programme really taught me outcomes for their communities. and it seemed at odds with the things how not only a business operates but In 2016, a total of 520 Māori students that are important to me. It wasn’t really how to be a critical thinker. It gives completed the Lion Foundation Young something I had thought about because insight into how business works and Enterprise Scheme – which saw them of that.” But fortunately Zeek was able to therefore where the opportunities to hatch a business idea, set up a company, broaden his view of business following change things lie. We were taught and write a business plan. The numbers his YES experience as one of the younger both process and structure. I’m now are expected to be even higher this year. participants in the programme. able to use what I learned to find ways

50 • KPMG • MĀUI RAU ON KEEPING IT REAL: ON STARTING THEM YOUNG: “Everybody Terry Shubkin is the CEO of Young Most people have heard of the Enterprise Trust. Her title translates Young Enterprise Scheme – it’s the as ‘Chief Excitement Officer’, and it’s high-profile programme that gets needs to be easy to see why she loves her job. media attention – but fewer realise Each year, the Trust helps thousands that the Trust caters to all kids, of New Zealand kids – including from primary-age upwards. exposed to many rangatahi – to unleash their creative talents in business through progammes like the Young In fact more than 100,000 New Zealand entrepreneurial Enterprise Scheme (YES). pupils are gaining business and financial skills annually via their full suite of programmes, games and curriculum- thinking.” “I think what makes YES so successful is based teaching resources. (See Resources that it’s authentic and it’s real,” says Terry. under youngenterprise.org.nz). “It’s not just learning from a textbook; it’s At primary-school level, the children also Terry Shubkin learning by doing. And it appeals to a get to run a simplified business – owning CEO, Young Enterprise Trust whole spectrum of young people – from companies, building products and taking the really academic kids, to those who them to market. have the more practical smarts.” “We use the analogy that when you’re The not-for-profit has now been running five, you believe anything’s possible,” for an incredible 33 years; and counts says Terry. among its alumni the likes of Xero founder Rod Drury, broadcaster Mike “There was a study done years ago, McRoberts, and Ezekiel Raui (left). which showed that 33% of five-year- olds possess the traits and attributes The ability to connect students with to be entrepreneurial. But by the time real-world businesspeople, says Terry, is they leave high school, it’s down to another ingredient in the programme’s something like 3%.” secret sauce. There are currently around 1,700 businesspeople who volunteer And although the education in some capacity – and the Trust would system hasn’t always recognised dearly love to boost the number of Māori entrepreneurship as a valuable area mentors on board. of learning, that is certainly changing. Every day, in classrooms across “To attract even more young Māori into New Zealand, there are clusters of our programmes, it’s important we have young entrepreneurs excitedly bringing role models they can look to and say, their business ideas to life. yep, I can be you.”

KPMG • 51 Accelerating the pace

When we talk about accelerating the pace, we The journey of an entrepreneur have to be clear about Commercialising a great idea takes the what it is exactly that we entrepreneur on a unique path are trying to accelerate.

Key characteristics The image to the right outlines the DRIVE AND PASSION journey of an entrepreneur, one that requires a healthy dose of determination, —— Innate drive to find out resilience and commitment. The pace of that journey is up to the individual or —— Innate drive to influence whānau and not something that can be the world quickly accelerated from the outside. —— Transformers For Māori, our main job accelerating the pace has to be getting our people to the start line of this journey. Identifying, SETTIN fostering and nurturing our young people G UP will be critical. We need to do all we can to encourage the drive and passion at an early enough point in life and directing them into environments where their strengths can come to the fore. It’s up to us to have direct input into the creation of spaces for this to happen on a daily basis. If they end up in environments where N O they conform and care too much about I S what others think, we may lose our S natural entrepreneurs from the system A P before they even start. Others will D N have enough motivation, drive and A E confidence to discern helpful advice R I V from pure opinion. D The Young Enterprise Scheme mentioned in the previous case study is one such organisation helping to inspire young people to discover their potential in business and life.

52 • KPMG • MĀUI RAU New horizons EXPLORING OTHER OPPORTUNITIES —— Mentoring, public speaking, consultancy —— Giving back —— Re-inventing self

Business stage 2 GROWING —— Surrounding yourself with good people S —— Looking to advisors and N O mentors Z I —— Learning not just R O management but leadership H

—— Trying new paths, but LETTING W GO E defining core competencies N

Business stage 3 LETTING GO SETTI G —— Empowering the NG N UP I management team to W O make decisions R G —— Space to focus on new challenges —— Industry leadership and inspiring others —— Succession planning – Business stage 1 ensuring the business SETTING UP can be maintained without you —— Turning ideas into action —— Learning curve – failing, and getting up again —— Realising limits to abilities, hiring others —— Enthusing others – staff, customers, funders

KPMG • 53 The long game

We believe anything is possible. We see opportunity when others see impossibility. We take risks. We’re focused. We hustle. We know that nothing is unrealistic. We feel overwhelming love. We embrace our childlike wonder and curiosity. We take flying leaps into the unknown. We contribute to something bigger than ourselves. We create. We learn. We grow. We do. We believe it’s never too late to start living a dream. Anon (adapted)

One contributor noted that This is a long game, given that our entrepreneurship, by its very definition mindset consists of attitudes and beliefs, is, individualistic. This need not be the accumulated over time, that largely case as Māori define what it is for them reflect the experiences we have had and their contexts. We have adapted the and the environments we spend most quote above (from “I” to “we”) to reflect time in. We therefore need to focus its application beyond an individual to on changing the surroundings and the whānau united in purpose. Embracing discussions that occur. the sentiments reflected in the quote Those organisations charged with the would help to grow the knowledge, long term well-being of their people may confidence, resilience and perseverance consider some ways they could support required to take the plunge. tribal entrepreneurship ecosystems.

54 • KPMG • MĀUI RAU Actively facilitate entry for Influence curriculum within primary and secondary school the region to include financial Subsidise teacher training business teams to participate literacy among primary and in business literacy. in regional and national secondary schools. business competitions.

Convene forums to help Find business owners Consider leveraging the entrepreneurs to test and who are open to mentoring balance sheet for those validate markets, ideas and and/or employing rangatahi businesses that have strong business models, and to interested in running their investment cases. develop investment cases. own businesses.

Actively participate in the Support tribal business regional business support Encourage attendance at wānanga to grow ecosystem as a partner other business and self- confidence in the to drive Māori economic improvement events. language of business. outcomes regionally.

The suggested initiatives above aim to important to remember the value and shine a light for others to follow, identify points where iwi organisations of ongoing, frequent and continual they kick off a new norm. They have in particular can enable, connect and focus on developing the mindset for different expectations for the next facilitate opportunity for their people; entrepreneurship, particularly for generation who will naturally pursue by utilising partners and without the those who don’t have a whānau higher education. They are part of responsibility for actual delivery. We history of business. an exponential growth of Māori have seen a significant increase in the talent. We seek a similar effect for The journey of growing an entrepreneurial number of Māori-focused business entrepreneurship. population will reflect our journey to training related events such as educate our people over the last three A Māori business doing their part workshop training, pitching events decades. As the first member of a with others to help grow Māori and startup weekends. These whānau graduates from university, entrepreneurship is Ārewa, which is will all have a positive impact on they make the impossible, possible the subject of our next case study. exposing participants to the concepts for their whānau. They cut a path of business. However, it’s also

KPMG • 55 Finding the big idea

CASE STUDY

When budding it specifically for Māori entrepreneurs. to set up a website that would match The resulting event, says Sacha, was older people in each region with similar entrepreneurs tell Sacha a successful “melding of the standard interests, and potentially sell tickets to MacDonald about their Start-Up format, but for a Māori audience events. Applying a commercial lens, the and in a whānau setting.” programme helped her identify another idea, there are two key business angle. “There are some things you can’t change questions she will always about the format; for instance, you “Imagine the valuable data you’d collect ask next. What is the can only have one minute to pitch your from doing that,” notes Sacha. “If you business idea. But we switched it up and could commercialise that information problem you’re trying to brought in a few things that are uniquely some way, that’s how you’d fund your solve? And how can that us, and infused whanaungatanga in social enterprise.” everything we did. We wanted to make be commercialised into a Sacha says Start-Up thinking can also be sure that everyone felt safe and that they used in non-commercial contexts as a viable business? weren’t being put in a box.” powerful platform to frame up problems Held in April 2016, the inaugural and scope out solutions. As organiser of the first Google Start- He Tangata weekend attracted 55 Up Weekend for Māori entrepreneurs, “We can apply the same thinking to any participants. The key aim of the Sacha says that pressure-cooker social or cultural problem…maybe you’re weekend, says Sacha, is to explore how environment allows aspiring business an iwi wanting to re-engage with your a spark of an idea will translate into a owners to test their ideas. members, or you want to find more commercially-viable product or service. people to speak on the paepae. “Within a weekend you learn a lot about For example, one of the participants solving a problem, and whether you “You can problem-solve any of those was a fluent Te Reo speaker who was actually have a product. Finding your things using the same tools we use in frustrated at the mispronunciation of MVP [minimal viable product] is great the business context. It’s amazing what Māori words. Over the weekend, an for anyone who intends to launch a happens when you get a whole bunch of idea was hatched to develop an app business – because you could spend people in the room and get them talking. that could be used by visitors to national thousands of dollars and unlimited time There’s that magic moment when parks. By providing audio on local place- getting to something that, ultimately, something just sparks.” names, stories, whakapapa, and flora won’t take off. You can’t start a business and fauna; visitors would be educated if there’s actually no problem to solve.” in correct pronunciation as they walked Sacha is a Nelson-based business owner around the park. who also runs programmes to support Increasingly, says Sacha, business Māori in launching their own business. ideas are about responding to social Last year, her business approached or community need. Another He Start-Up Weekend New Zealand and Tangata participant was worried that her asked to use their platform – but adapt grandmother was lonely. Her idea was

56 • KPMG • MĀUI RAU WHERE TO FROM HERE: ON THE IMPORTANCE OF BEING RESILIENT: “You can’t start Once the excitement of the Start-Up weekend is over, how do you keep Resilience is one of the key traits the momentum going? needed as a business owner - and a business if Sacha MacDonald had it instilled in her at a young age. Sacha says it’s vital to provide that “next there’s actually learning step they need to take…to actually get their business off the ground “It was part of my upbringing. My father and start operating.” was a survivalist, and he taught us kids no problem how to be resilient. He’d take us into the One initiative that aims to support that bush, give us a single match, and tell us is the Co-Starters programme, which is if we didn’t light a fire we wouldn’t be jointly branded by Ārewa (one of Sacha’s to solve.” eating that night.” businesses) and Innovate Nelson. This nine-week programme is run after-hours, Being willing to work hard is another so participants can continue in their day important trait. It’s seen Sacha grow her Sacha MacDonald jobs while working on their business operation from being a one-man band, to Business owner and contributor/architect idea. Sacha also facilitates the Start-Up running a stable of four businesses and of He Tangata Start-up Weekend School, a monthly Sunday workshop employing a team of 12 people working Ngāpuhi, Ngāruahine aimed at fledgling business owners. across New Zealand. As for future plans, Sacha is hoping Sacha launched her first business while to develop a “co-working space for balancing full-time work with a young Māori who are starting out in their family. She says launching a business entrepreneurial journey.” This hub would requires knowledge, time and money – provide everything a new business but in the real world, those three things needs under one roof; including are not always available at the same time. outsourced admin, HR, business and “I got my first business off the ground legal advice. with no money, but it took time. I’d be “I think it’s very powerful to have that Mum during the day and work while the physical space…and provide a platform kids were sleeping at night. If anyone where entrepreneurial people can feed asked me how I did it, I’d answer, well ideas off each other.” there’s 24 hours in a day. It doesn’t finish at 5pm. Sometimes you just have to do those long hauls to get through.” To this day, that hard work continues to pay off as Sacha has recently been recognised as one of New Zealand’s Entrepreneurial Winning Women™ for 2017.

KPMG • 57 Regional business support system

Tertiary/Research and Government and Development Institutions Industry Networks NZ Wide thland uckland A & Nor o on at aik Hamilt & W al th Is. Centr Nor th Is. on & er Nor ellingt w W Lo ch/ istchur Chr Other South Is.

Source: 2016 TIN100 Report

58 • KPMG • MĀUI RAU The graphic below is a helpful reference for iwi considering what the enterprise ecosystems look like in their respective regions and nationwide. Some of these will also have Māori-focused programmes and initiatives.

As mentioned earlier, there is much activity of third parties in working with Māori. Again, underway to help grow the Aotearoa enterprise this is already happening in some places but ecosystem. There is an opportunity to work a systematic change is required to accelerate with various parties within the ecosystem to the participation of Māori-owned businesses increase Māori participation within the system, in high-value industries. This requires a and also increase the cultural competence partnership approach by many parties.

NZ Angel and Seed Investors/ Collaborative Spaces, Tech Venture Capital Transfer Offices and Incubators

KPMG • 59 Opportunity from change

Our future will depend on our ability to think entrepreneurially, and embrace change with this same mindset.

The above statement resonated strongly with those present at one of the Roundtables, as it speaks to the qualities that Aware of help entrepreneurs navigate Lifelong student their operating Nimble, flexible their way through an ever- and always learning environment and and able to pivot changing world. They bring to and improving self the trends that bear a particular outlook on life that fuels their motivation to affect them keep going. This approach is characterised by the following:

Persevere Strong Creative to find Courageous to and find ways communicators alternative solutions carve a new path to overcome obstacles

Decisive and Curious about Focused and say prepared to Resilient and use people in order to “no” more than make decisions failure to learn identify needs they say “yes” with imperfect information

60 • KPMG • MĀUI RAU Successful entrepreneurs look to find The biggest barrier for almost half of It is entrepreneurial thinking that is the opportunity in change. For many of these, according to the ANZ Privately difference between these companies our people who have been adversely Owned Business Barometer 2015, is and those that don’t quite make it, affected by change, it may be difficult the difficulty in finding a successor, and seeing the possible versus the to see how it can be something positive further complicated by over-reliance impossible. that we can benefit from. This has on the owner's expertise. There will These companies took an average of occurred because our people have been therefore be a pipeline of acquisition 2.5 years to get to a $1 billion valuation, dependent on others to derive incomes opportunities; and now is a good time highlighting the global potential of in industries affected by movements in to grow an understanding of the due the marketplace. They were the workers diligence process. technology for our entrepreneurs. on the frontline that suffered massive This reflects the sheer potential of the multi-facted technology industry, which job losses in the freezing works and Urbanisation railways in the 1980s. They weren’t the will play a significant part in helping business owners who could see the With the significant population drift to address some of the largest global signs coming and had opportunity to to metropolitan cities across the challenges. world, entrepreneurs can now target insulate themselves from the full impact. The earlier case study about Te Pae Tata single cities or regions. This allows highlights how one community has This type of change is upon us again, businesses to focus their operations recognised the value of technology and it is the decisions we make today and distribution (although increasing to the future of their community. that will determine if we thrive by taking concentration risk) while having access A widespread uptake throughout the advantage, or if we experience a repeat to a market size that makes growth a Māori landscape to seriously advance of the 1980s situation. There have more realistic proposition. never been as many entrepreneurial the collective technology development capability of our people would help us opportunities available as there are Accelerated Innovation & Technology now. It’s really a case of how we grow to capitalise on these changes. The our awareness of these and position The world is in the grip of unprecedented Māori technology pioneers are leading ourselves to grow our ability to change which is redefining entire the way in this field – and it’s time to capitalise on those opportunities. industries, and creating new ones grow the movement as if our future from scratch, due to ground-breaking depends on it. Some of the megatrends mentioned on advances in artificial intelligence, We are heavily involved in the primary page 20 will help us identify changes robotics, the Internet of Things, industries, and there is considerable that present future opportunities. self-driving vehicles, 3D-printing, potential within the technology nanotechnology, biotechnology, revolution (as there is for all industries). Demographics blockchain (including cryptocurrencies) Therefore, can we expand our focus and quantum computing. Within Aotearoa, there are a large to include the various technology number of businesses started by the Technology has helped small businesses industries? If that is something we are ‘baby boomer’ generation that are take on larger businesses and win. willing to commit to, we must navigate expected to change ownership in the The graphic below sets out the time our way to occupy the right spaces on next 5 years as the owners retire. from founding to a $1 billion valuation. the network and across the value-chain.

Start-ups ranked by number of years from founding to $1 billion valuation

Slack 1.25 Groupon 1.46 Akamai Technologies 1.58 Xiaomi Technologies 1. 71 Calient Technologies 2.02 Yello Mobile 2.28 Twitter 2.32 Hangzhao Kuaidi Technology 2.43 Pinterest 2.46 Webvan Group 2.56 Instacart 2.58 Lazada 2.75 Tinder 2.83 Zynga 2.88 Square 2.93 Better Place 3.07 WeWork 3.09 Snapchat 3.09 Uber 3.11 Horton Works 3.23 Source: Loïc Le Meur

KPMG • 61 Technology

One of the key benefits of online technologies is the ability to communicate and engage with large audiences; using the power of the viral effect along with sophisticated algorithms to extend reach into untapped markets.

Most of us are familiar with the various The real opportunity is for small Māori But while international reach for social media channels used to engage businesses to invest (either individually marketing purposes is something and communicate with indivdiuals; or collectively) in understanding the that will undoubtedtly help Māori as well as the many e-commerce mechanics and application of social entrepreneurs, technologies extend channels that enable us to shop and commerce in helping them match well beyond the ability to promote transact online. their product/service to markets. products and services to the world. For those who are regionally based, ‘Social commerce’ operates at the Technology is also integral to the this is an opportunity to use the power intersection of social media and design of many products and services of technology to grow local economies, e-commerce, where social media is used as traditional methods of delivering particularly where there are no large to assist with the buying or selling of products and services to market are industrial employers. This makes goods and services. For entrepreneurs in being disrupted. In fact, the 2016 access to broadband critical, and New Zealand, the ability to reach a global Global CEO Outlook Study by KPMG worthy of strong advocacy where it audience for marketing purposes has international noted that one of the top is not available. never been greater. three priorities of CEOs over the next three years is implementing disruptive technologies (with 77% concerned about whether their organisation is keeping up with new technologies). If a large proportion of international CEOs are planning to implement disruptive technologies, it is important that we understand what these are and how we plan to implement them into our businesses and organisations. Two people bringing disruption to the delivery of health services are Dr Social Lance and Tracy O’Sullivan with their commerce revolutionary app, iMoko, the subject E-commerce Social media of our next case study.

62 • KPMG • MĀUI RAU KPMG • 63 A healthy disregard for the status quo

CASE STUDY

Earlier this year, Dr Lance weeks ago I had these hakihaki on my “Cleary, the current model is pakaru. And legs. I went to see Whaea Lisa and she they were saying: we can’t just tinker O’Sullivan had a chance used the iMoko iPad, and I got better’.” with change here – we need something encounter with three radically re-designed. We’re not going to Reflecting on it later, Lance realised accept what we’ve been force-fed in the young Māori boys in his three significant things. past. We’re going to reset the menu.” Kaitaia community. And “Firstly, they didn’t know who I was…and What’s most exciting, say the that brief conversation that’s awesome, because we want our O’Sullivans, is that iMOKO™ has been health workforce to have a light touch. designed from the ground up to be on the side of the road We shouldn’t have our fingerprints fit-for-purpose for Māori. Instead of the beautifully illustrated over everything. I just happened to Māori programme being the ‘after- be the doctor that had approved their thought’ from the mainstream solution, just how the iMOKO™ prescription remotely, from wherever I it’s the other way around. “What programme is delivering was in the world at the time. we’re developing in iMOKO also has huge implications for the mainstream “Secondly, this child saw Whaea Lisa as transformational change. population. But it’s absolutely our his healthcare provider, not Dr Lance. communities that are the reason for She’s a Mum in the community who’s Developed by the dynamic husband-and- embarking on this. We know this will teaching them reading recovery one wife team, Lance and Tracy O’Sullivan, work for Māori, and for indigenous minute, then helping them get better the iMOKO™ is a digital platform that communities…and hey look, it’s a bonus next. So we’re empowering a layperson empowers Māori communities to if it works for everyone else. We’ll just and member of their whānau to become manage their own health outcomes. reinvest that into more disruptive and The centrepiece is the iMOKO™ app, more central to that community than the innovative approaches for Māori.” which allows doctors to prescribe doctor is. remotely for common children’s health Not that being at the frontier of “And thirdly, those boys saw an iPad problems. There’s also a free app, disruptive technology is an easy as a portal to healthcare…not just designed for parents, which lets them road. Even with a concept as brilliant something to play games and videos on. access their child’s diagnostic and as iMOKO™, Lance and Tracy have Imagine in 10 years’ time - we’ll have prescribing information. encountered plenty of nay-sayers along this health-literate generation of the way. One year after its launch, the roadside young Māori who’ve grown up anecdote perfectly illustrates why the knowing they can access health “Disruption threatens incumbent programme is succeeding. Lance was services via an app or device.” providers, because you’re seeking to out driving the iMoko car, when “three change what’s made them comfortable. Innovative thinking is nothing new to Māori boys with big cheeky grins” Disruptive leadership is about going Lance and Tracy. After 15 years working approached him. around them, going over them, or going in mainstream medicine, their idea through them. Being brave and being “They didn’t recognise me, but they for iMOKO™ grew out of a flaxroots creative are inherently Māori traits. asked if I was with the iMoko team. initiative that came from the community. Disruption is a form of protest for us. It’s Curious, I asked them what they knew “Our people were in the frontline seeing just that instead of waving flags and about it. One of the boys says: ‘three this desperate unmet need,” says Lance. banners…we’re waving APIs and Cloud.”

64 • KPMG • MĀUI RAU ON GLOBALLY-CONNECTED ON BEING NEW ZEALAND’S RANGATAHI: BUSIEST COUPLE: “Disruption is a

The MOKO Foundation is a Lance and Tracy balance three charity started by the O’Sullivans huge roles – each of which is a life’s form of protest to create opportunity for mission on its own. They’re raising rangatahi in Northland. Part of a family of seven children, running its mission is to bring about a a high-profile business, and doing for us. It’s just mindshift…from rurally-isolated community work through the Moko to globally-connected. Foundation. So what’s the secret to their enduring partnership? that instead of

“We’re really instilling this sense in our rangatahi in the North that geographical Lance uses waiora as a metaphor for waving flags isolation is no longer a barrier,” says Lance. their relationship, with two rivers flowing into balance. “It’s about supporting them with IT and exponential technologies and innovative “We complement each other. I’m pretty and banners… thinking; so they believe they’re just as high-intensity, while Tracy’s rangimarie capable of creating the next Uber or Air approach brings that calming and BnB as anyone living in any other part of sensible side. If I’m about to make a we’re waving the world.” really heated decision, for instance, she’ll encourage me to process it and give it As Tracy explains, the Foundation also more thought.” provides rangatahi with a range of APIs and Cloud.” life-changing opportunities in the global Away from work, Tracy says the couple leadership space. They have visited the are conscious about dialling it down to likes of Silicon Valley, Alaska, New York, enjoy family time. San Francisco and Washington. “Lance spends a lot of time away, so Lance and Tracy O’Sullivan In 2015, the Foundation sent five when we’re together, I memory-bank Founders of the Moko Foundation, and the young people to attend the Tribal Youth him. Whether we’re playing with the iMOKO™ programme Gathering in Washington. It was hosted boys, or we’re at the beach, or just Te Rarawa, Ngāti Hau, Ngāti Maru (Lance); by the White House and Michelle having a cup of tea…I’ll say to him, we Te Arawa (Tracy) Obama was a keynote speaker. have to remember this moment.” “We told them, you’re going to represent Māori on an international stage…go up there and leave a mark. And they absolutely did. We later got feedback from the Obama administration staff describing how inspirational they were.”

KPMG • 65 Technology and jobs

The technologies referred to have changed the way society interacts, socially and commercially, and we have only just begun to understand its full potential. They can help solve some of our most pressing problems, but also divide societies into those who embrace change and those who do not. Our response to and interest in understanding this area will either threaten our relevance, or position us well to take advantage.

One of the most critical impacts of these business. But exclusively looking there future technologies will be the impact on may mean that other opportunities Employment. The 2016 Future of Jobs could be missed in areas where jobs Report by the World Economic Forum are predicted to be lost. Of particular outlines where jobs are expected to be relevance to our next case study is the created and lost out to 2020. 109,000 jobs in the legal profession expected to disappear by 2020. Titus Overall there will be more jobs lost than Rahiri has used his awareness of the created, but those created will be higher changes to his profession, and turned paid jobs. At first read, most would look the above trend into an opportunity for to the areas of job creation as areas of his business, KorumLegal. possible opportunity to start or grow a

66 • KPMG • MĀUI RAU Net employment outlook by job family, 2015-2020 Employees (thousands, all focus countries)

Office and Business and −4,759 Administrative +492 Financial Operations

Manufacturing and Management −1,609 Production +416

Construction and Computer and −497 Extraction +405 Mathematical

Arts, Design, Architecture and Entertainment, Sports −151 +339 Engineering and Media

−109 Legal +303 Sales and Related

Installation and Education and Training −40 Maintenance +66

KPMG • 67 Challenging the new frontiers

CASE STUDY

Corporate lawyer Titus A few years later, Titus had moved from Titus, “it gives them the flexibility to still Expedia to work for a global fintech work in the law, but on different terms.” Rahiri was working for a start-up company. With US$200m in Globally, the United Kingdom is the investment and a valuation of $2.7 billion, fintech unicorn company country that’s leading the charge in it was a “classic start-up company with a valuation of $2.7 with all the surface grandeur, but no NewLaw. They passed legislation in billion. He used that delivery or execution underneath.” That 2008 that allowed non-lawyers to provide legal services, thereby opening up the experience as a lesson company went into administration, and eventually collapsed in March 2016. market for liberalisation. The US and on what not to do when Noting the lessons learned on how not Australia are also growing rapidly in this space. Titus says those three countries it came to launching his to run a start-up, Titus launched his own business shortly after. are driving global change in the multi- own innovative start-up billion-dollar legal services industry – Headquartered in Hong Kong, while New Zealand is noticeably “lagging business, KorumLegal. KorumLegal provides legal solutions behind the rest of the world.” under a lean law model. Their global After starting his career in New Zealand, client base ranges from start-ups and “The market in New Zealand still seems Titus was soon lured offshore to take SMEs, to multinationals, financial to be quite protectionist. We’ve actually up senior legal roles with multinationals. institutions and law firms. One of their looked to set up in New Zealand, but When the GFC started to bite, he was current assignments, for instance, is a until the market there grows sufficiently, senior counsel for Expedia’s European digital transformation project for a major we are focusing on other Asia Pacific business – at a time when the squeeze Hong Kong bank. countries for now. But we are continuing was on companies to reduce their legal our conversations with general counsel budgets. “As a team, we were seeking “The NewLaw model is about providing at several large organisations in innovation and increased value from our legal services in a way that’s more New Zealand…it’s those people who will legal spend,” recalls Titus. “Despite that, accessible, flexible, and affordable for slowly drive change.” law firms didn’t seem to be adjusting clients. We can provide legal services at how and what they delivered.” up to 60% of the cost of a traditional law Another big focus for KorumLegal firm, without compromising on quality.” is staying abreast of emerging In 2011, Titus started an Executive MBA, technologies, many of which will and completed a final business project KorumLegal differs from the traditional radically change the delivery of legal looking at innovation in legal services law firm in several ways. It is a services. and the emerging NewLaw model. consultancy, rather than a traditional law “Based on my experience as a buyer of firm partnership model, thus avoiding “Whether it’s the blockchain, smart legal services, I was already thinking, the big-firm overheads. It embraces the contracts, AI or robotics…technology ‘there must be a better way of doing this’. latest technology, in order to provide is going to have a huge impact on the Then through my research, interviews nimble and agile service to clients work that lawyers do. If you’re not and the gathering of data…I had the anywhere in the world. And for those adapting to that, you’re going to face beginnings of a business model.” working in the KorumLegal team, says a Kodak moment.”

68 • KPMG • MĀUI RAU ON THE IMPORTANCE OF ON THINKING GLOBALLY: EXECUTION: “If you’re not Titus Rahiri has some advice for Titus recalls sitting on the marae young Māori law graduates – as a young boy, listening to the embrace and understand adapting, you’re kōrero of his elders, and wondering technology, gain experience ‘why is it taking them so long to overseas, and harness those skills make a decision?’ to help grow the Māori economy. going to face a

Looking back 30-odd years later, he can “There are already many good Kodak moment.” see traits of his childhood self in the way Māori lawyers in the ecosystem in he approaches business now. New Zealand. A significant number of them are involved with Treaty settlement “I grew up on the marae, I speak Te Reo, work, which is really important…but I Titus Rahiri I understand tikanga. Collaboration and also think it’s an exciting time for the Founder/owner of KorumLegal sharing of ideas is one of our values at Māori Economy in developing business Ngāti Ranginui, Ngāti Pāoa KorumLegal…but I still want to shorten and entrepreneurship.” those long meetings! I think consultation is good, but it needs to lead to action Titus believes the smart money for and execution.” asset-rich iwi organisations includes investment in the global technology He learned this from his former boss at industries. Having worked alongside Expedia, Dara Khosrowshahi, an Iranian giant players such as Google and immigrant who became the company’s Facebook in the US – and Alibaba, CEO at 35. Tencent and Baidu in China – he says the “His mantra came down to two things: “sheer scale and customer base of these execution is key; and it has to be organisations is mind-boggling.” execution based on data.” “If there’s $42b circulating in the Māori The other thing Māori entrepreneurs economy, some of that should be need to embrace, says Titus, is a allocated to growing the technology willingness to risk failure. capability. Because that’s where the future is going to be…in data analytics, “There is huge benefit in failing-fast, AI, robotics and the like. I would urge learning from that, and trying again. It’s iwi to start nurturing young talent via all part of the challenger mentality.” incubator programmes, as well as attracting global talent in that space.”

KPMG • 69 Connecting collectives and enterprise

Is there an intersection?

In attempting to find the intersection Non-Māori View Finding the Crossover between Māori collective organisations and Māori individual or whānau business, In contrast, some contributors alluded The question has to be: how do we find we posed the question, “how can iwi to a popular non-Māori view that the the crossover between the leadership and hapū organisations enable and rise in economic power of our Māori of our collective organisations charged facilitate entrepreneurship among the collectives has had an impact on Māori with improving economic wellbeing, iwi membership?” Those who ran their in business. Some non-Māori assumed and entrepreneurship which is largely own businesses were taken aback, as that if you are a Māori business looking an individual or whānau undertaking? they had not even thought about the for support or funding in some areas of The economic development approach by possibility. Others felt that while there the country, then you should simply look Māori collectives has largely been based were already initiatives underway, it to the local iwi collectives. They believe on a centralised model where the assets was being done in an adhoc way. This that this is true even if you happen sit centrally and a portion of the revenue is not a bad thing as it demonstrates to live in an area that you don't stream is used to fund the non-economic consciousness around the value of whakapapa to. We found this ironic collective priorities. given that the Economic Development entrepreneurship within the collective At the other end of the spectrum would Agencies exist for all businesses. landscape. be a situation where direct investment of capital into businesses of iwi members could occur. At this stage of maturity, that could present a series of financial and operating risks to the iwi entity.

70 • KPMG • MĀUI RAU We believe the crossover is where collective Models and People Summary entities help business owners by: A change of this nature will require The challenge in heading to this space —— leveraging internal commercial different business and operating will be to work through the attitudes, expertise models; and potential changes in the views and perspectives around the mix of governance, management and relationship of Māori and economic —— partnering to build business owner operational capability from the many concepts. Enterprise is something knowledge, capability and experience delivery models we currently see. that was a significant part of our pre- —— developing procurement policies It will also require strong links Treaty history as growers, international and relationships that support iwi between whānau, businesses, traders and bankers; so commerce entrepreneurship. collectives and the wider business and capitalism are not new to Māori. support ecosystem; along with the Yet conversations around business and Courage technology and people capability finance can be much more sensitive, with that can leverage networks for value. many seeking to divorce any reference It will therefore take a courageous and This is a complex undertaking but is to finance from any Māori concepts. It committed leadership to consider the necessary in encouraging a self-reliance is time to bring balanced perspectives place of an alternative model in the mix. mindset and growing the volume through to the conversation as we attempt to One that seeks to enable and facilitate the pipeline of positive reference points. resource our aspirations in a sustainable entrepreneurship on a distributed and manner and at a whānau level. decentralised basis, while continuing with the current approach. Yet it is a model where Tino Rangatiratanga and Mana Motuhake of whānau and hapū has more chance of being realised than under a solely centralised and bureaucratic model.

KPMG • 71 PART THREE

We invite you to join a group committed to taking these ideas through to The call action as part of a collective effort to keep raising the bar of our businesses and organisations to action for our people.

The well-being of our Māori people: that our well-being. And it will take the right There are eight calls to action, but the is the end game, as we set up a great leadership to re-channel our energy major play is in capability-building. future for our generations to come. from fighting for rights to the pursuit of This is about giving people experience Māori, being successful as Māori, with freedom, the freedom to be successful in the right form and context, and all of our tikanga, values and ways of as Māori. That success will be how we being alongside them as mentors. It doing life. Māui Rau 2017 is a deep dive define it for ourselves. means seconding people into and out in to two key aspects that will help us of roles and constantly moving around In shifting our fight to this new frontier, navigate our journey to that destination – the system helps to grow different we need to be deliberate and purposeful leadership and entrepreneurship. capabilities. This capability-building can about how we chart our course forward. be applied to leadership, enterprise, We come from a legacy of fighters, Māui Rau 2017 has produced specific technology or some other area warriors, and protectors. When Pākeha calls to action in the realms of leadership altogether. The value is in growing the first arrived on our shores they brought and entrepreneurship which we suggest networks, experience and skills. with them their values, perspectives and is the starting place to focus our energy ways of doing things. It clashed with and resources. Drawing on the strength our way of life, and our tūpuna found and feats of those before us, we can themselves fighting for their lands and exercise our Mana Motuhake and Tino Anything that gives you an uplift ultimately their way of life. Since that Rangatiratanga as we carve a new path in capability is worthy of pursuit. time we have had leaders rise up to fight towards our future. for our rights, our lands and resources, The title and lyrics of composer and now recognition of Te Tiriti o Waitangi, Te Reo Justice Joseph Williams, as recorded by me Ōna Tikanga, and we are grateful his band Aotearoa, succinctly sum it up for the things we have today. Because in this way: of their stand we have Te Reo Māori recognised as an official language in Maranga, maranga, maranga ake ai! … legislation, we have a place to be heard in respect of Treaty breaches, we have Tu ake, tu ake, maranga ake ai! Kōhanga Reo, Kura Kaupapa Māori, Whawhai kia whawhai kia maranga ake ai! Wharekura, Whare Wānanga, all thanks to those who stood up to fight the injustices. Maranga, maranga, maranga ake ai! The fight continues today, but we have another platform upon which to advance the well-being of our people – being one of business and enterprise. This is not to replace the current fight against injustices, rather it is another platform we can leverage as we work towards

72 • KPMG • MĀUI RAU ACTION 1 ACTION 2 Lead with Proactively purpose design We have a proud history of servant succession leaders who, through their collective actions over generations, have continued to build the momentum in raising the In this rapidly changing world, we will health and well-being of our people need many more leaders to cover a and environment. As Western models broader range of kaupapa. It’s time for of leadership are tested in today’s current leaders to enable and support climate, the value of our leadership more of the next generation to build their DNA becomes clear. It’s one that is own leadership capability. They need fit for the future and cannot be easily to be nurtured, fostered and supported replicated. Our natural sense of purpose, with extended opportunities for their the connection to place, our emphasis own growth to occur. Find a mentor, or on strong relationships and talent for a mentee, and walk the road together. humour all characterise something that Take an opportunity for yourself as a is both valued internationally and difficult leader but remember to also pass an to copy. opportunity on. Today’s leaders stand on the shoulders Let’s design deliberate pathways so of those who have gone before and can they have every opportunity to grow use this legacy to propel us forward to as cohorts of well-networked cultural even greater things. ambassadors with extraordinary capability who are well networked. Our leadership today is doing a fantastic Continue to press on with building the job of sharing the stories of success to future leaders' network that facilitates inspire new action at a national level. The connection and collaboration (fuelling next challenge is to expand the circle organic growth and deliberate proactive so that this inspiration can flow through action) through all levels of society. local and regional communities. Invest in rangatahi at an early age and Share stories that highlight the value capture the hearts, minds and souls of associated with the distinctive value of these young people so they will give Māori leadership to remind and inspire good service in time. the next generation. Create safe spaces for them to serve, practice and contribute. Take note of the leading organisations and establish ‘leader apprenticeships.’

KPMG • 73 ACTION 3 ACTION 4 ACTION 5 Think globally Assess your Celebrate, to serve locally leadership communicate, To best serve our people at home, we team must understand what is going on share globally and the forces that are likely to impact on us. Set aside regular time at Take the test as a governance group Our businesses have an advantage and board and leadership meetings to explore or leadership team on page 16 and can accelerate faster in international the impacts of identified megatrends and consider where you sit as individuals markets because they start from a the associated threats and opportunities and as a group. We need to regularly story-based platform. for our people. Ensure that strategy, self-assess our contributions as practice and culture reflects the individuals to governance groups and We need to bring forth the whakatauki organisational agility that is required. leadership teams to ensure we have the that speak about excellence and right balance of perspectives contributing achievement. It is possible to be While we do that, let's keep in mind to stronger decision-making. humble yet determined. Be constructive our place in the world and the mindset rather than critical in your advice, and we need to take advantage of global This exercise will reveal some insights support people to take the step into opportunities, using our own uniqueness into how our operating models may the unknown if they have done their as the tool of enablement. This is not need to adjust in order to access homework. Sharing both successes about replicating what is happening capability as and when needed for and failures and the resulting learnings globally but about understanding the a particular purpose(s). are invaluable to those who have the true value of our own approach in an fortune of learning from your experience. international marketplace. This is necessary so that we play our part to contribute to the leadership legacy; You have the power to empower others We need bold renewal in all forms of and therefore we will need leaders by your words, by your deeds, by your organisation and the ability to continually committed to a path of lifelong learning. experiences – use them to inspire. review and improve them for a dynamic Part of this will be collectively sharing in environment. Invest time and resource into researching and developing what good the stories, the attributes, and the values Establish collective forums for action practice for operating models looks for Māori-owned businesses to adopt and to identify and test the organisational like, in a climate where fit-for-purpose embed. Once embedded into the fabric models that balance execution through capability is in short supply. of the businesses, these can be used to current operations with the innovation support the push into the international and change needed for the future. markets. Celebrate, communicate and share the successes and failures, and kill the tall poppy syndrome.

74 • KPMG • MĀUI RAU ACTION 6 ACTION 7 ACTION 8 Develop Plug into existing Grow collective financial and enterprise participation business ecosystems in technology capability There is a full range of services across the Technology will be all-pervasive, and spectrum aimed at growing enterprise require a new level of literacy for both in Aotearoa. These include financial users and creators. The industry will Whānau can realise mana motuhake and business capability programmes, provide many opportunities to participate when they have choice in life. workshops, training, incubators, in a global economy from rural and Historically, we have had a focus on accelerators, business competitions and regional bases. Therefore, it is important education as the pathway to this choice. many more interventions. Rather than that strategies for the well-being of our It’s now time for enterprise to take its reinvent the wheel for Māori, consider people take account of their ability to place beside education, but there is a what integration mechanisms are needed participate in the new world. Many jobs long game to be played here. to grow Māori participation and outcomes will disappear. However new ones will from those programmes. be created, most of which will require Establish or connect to education literacy in technology. programs in every school to increase If the objective is to increase the rate of the financial and business capability new business establishment and growth, Partner with organisations that grow of our tamariki and rangatahi. many hands are needed for the Māori technology capability to position our enterprise ecosystem. Māori collective people for a prosperous future. Partner with organisations to bring businesses and organisations of scale this to our people. Embed it in the can play a very important role. programmes aimed at delivering well-being to our people. Within this group are collective experiences, networks, mentors and potential customers. If these organisations understand that they are part of the process of incubating and accelerating our SMEs, we can combine our collective power with entrepreneurial energy to achieve the lift we seek. Leverage this to grow the network and the health of the Māori economic ecosystem. Connect with the existing ecosystems to develop the system to support whānau enterprise growth.

KPMG • 75 Leveraging tools for success

Māui Rau is about encouraging action, bringing to life our dreams. This action does not need to be done alone; we are here to inform, support and contribute to the journey ahead. While ASB and KPMG have a range of services, we have chosen to share those that have direct relevance to the report content.

We observe organisations and Foresight and Innovation Strategy, Organisation Design businesses grappling with many of and Change the matters raised by our participants. Maintaining relevance today is more Unpacking the actual issues and dealing challenging than ever. New challenges Many organisations are now reviewing with the root cause rather than the require fresh thinking focused on the extent to which they are achieving symptom is a very useful exercise for the emergent future. It’s imperative intended outcomes. Changes in decision-makers as they aim to make that organisations create a culture strategic direction and priorities or operational improvements and consider of innovation, capitalising on the identified problems drive the need to strategic moves. The leaders within thinking and insights of employees and critically review strategy or alignment these businesses and organisations stakeholders. In our view, ideation is of organisations to strategy. This may often find that simply having a sounding more than a simple idea, it’s the tacit require changes to business and/or board to bounce the issues off or an knowledge in the minds of our people. operating models. At KPMG, we work independent facilitator to guide a group Capturing this knowledge is key to with organisations and businesses to is a highly valuable. This is something establishing an open, transparent and help them reposition and refocus to that KPMG is here to help with. collaborative organisation. Only by better direct resources, and align the engaging in future-focused thinking can people, technology and processes leaders ensure they can take advantage needed to achieve desired outcomes. of emerging opportunities and avoid being surprised by underlying trends, We help to ensure strategy and uncertainties and disruptors. organisational design is fit-for-purpose. Any adjustments to current practices are backed by a solid case for change, while ensuring the human aspect of any change is well-managed.

76 • KPMG • MĀUI RAU Cognitive Technology Nurturing Enterprise – Small Enterprise DNA Business Accounting As Māori organisations strive to As businesses become medium or strengthen engagement with their As regional Māori enterprise ecosystems large entities with ambitions to grow, membership and improve internal grow, it will be important to have the new challenges and problems will be efficiencies, cognitive technology will right supports in place to guide business encountered. We understand these play an increasing role. This will help owners through their growth journey. problems and are committed to organisations to do more from current helping businesses overcome these resource without the need to employ Starting a business can be unknown to fulfil their potential. additional people. territory for a new business owner, and turning your entrepreneurial ideas Our Enterprise DNA programme is Many organisations are looking to into business reality is much easier based on eight identified traits that high enhance the productivity of their with great support. Our KPMG performing businesses share. Over the organisations by freeing employees Enterprise division is dedicated to course of the programme we’ll work from routine administrative tasks and working with SME-sized businesses, with you to help build and embed these applying their skills and experience to to establish the right structures and traits into your business and enable a other tasks such as engaging with users. systems for success. lift in performance. The account from This is possible through the power of one of our Enterprise DNA clients on the cognitive technology and automation. following page outlines the impact of the It is predicted to become mainstream in programme on the way they now view 2-5 years and is already being embraced and conduct their whānau business. by forward-thinking organisations, both large and small. KPMG works with organisations to help them understand the application of cognitive technology.

KPMG • 77 The next level

There are countless examples of young talented Māori being steered off course by the most influential people in their lives – their teachers and whānau. At one point Serena Fiso (Nga Rāuru, Ngāti Ruanui, Ngāti Tuwharetoa) was told: “What’s the point of staying at school, you won’t get school C, you’ll be lucky to get a job as a cleaner at Griffins.” Fortunately for a young Serena, about to leave school in her fifth form year, these messages only fuelled her determination to prove them all wrong.

78 • KPMG • MĀUI RAU Inspiring future generations After a successful sales career, Serena “As a whānau business, we were nervous and her husband Siuai, started Connect about others knowing too much about Global, an award-winning outsource our business but the programme helped contact centre business, operating in us to see that the benefit of external Porirua, Ruatoria and Waverley. Their accountability heavily outweighs our decision to leave the security of their fears around having an advisory board. careers and start a business came from “We are more courageous and prepared a desire to show their children a different to actually do things we had been path to their own. Serena wanted her thinking about as we now have better children to do better than they had systems, processes and accountabilities and to create an environment where in place but ultimately we have grown as entrepreneurial thinking was the norm people and are now prepared for much for her children, and the generations more. to come. And that thinking is filtering through, something Serena is very proud “We know what we need to do, where of as she talks about her children and we need to focus and the disciplines we their own business careers. need to embed. Siuai and Serena had always told their “Although participating in the programme children to keep raising the bar, as has shaken me and made me feel what’s best today is not necessarily uncomfortable, it has given me more the best tomorrow. They encouraged confidence for a clearer picture and them to never be comfortable as growth pathway to the destination – it’s clearer always comes from discomfort. and it’s bigger. Our ambition has grown as a result of the programme as we Ironically, despite their advice to their realise just what is possible and the size children, they had found themselves of the opportunity.” in a comfortable position, after many business ups and downs. They were When prompted Serena says “our winning awards, the media attention greatest achievement is seeing that the was growing and yet they realised they next generation have a different picture were still operating as a small business forward, not just our family, not our kids and hadn’t grown in their thinking - but also the families that work for us.” complacency had crept in. Reflecting on why they weren’t further ahead, they enrolled in KPMG’s Enterprise DNA programme. “We liked the idea of understanding what top performing businesses do and what we needed to do and who we needed to become to get to the next level. The assessment process was really enlightening and this helped us to focus on the right areas. “We were missing out on opportunities because we were head down running the business and spending too much time on day-to-day operations and not enough time promoting and bringing in new business. The programme helped us to focus a lot more on getting in front of our target market and understanding our clients more deeply. We were forced to understand our roles and get out of the places we shouldn’t be in – we had to put ourselves in a different place rather than every place.”

KPMG • 79 Māori Financial Solutions, ASB

Māori Financial Solutions Anthony Ririnui (Ngāi te Rangi, Hononga – Building a group of trusted Ngāti Ranginui) is the head of our team, advisors around client needs and (MFS) is a team within and our Executive Managers are Zane circumstances. the Specialist Industries George (Ngāpuhi, Ngāti Wai, Te Arawa), and Kirikaiahi Mahutariki (Te Arawa, MFS has a great network of specialists division of ASB Bank. Mataatua, Tongareva (Kuki Airani), across the bank, and we bring in specific ASB’s commitment to Tahiti). Our MFS team work with other experts to work with us in delivering the business units across the bank in order best business solutions. Māori business as a to provide the best business solutions specific team was formally for our clients. Arahina – Working with clients to acquire and grow assets for future established in 2010 with generations. How can we help? the approach being to build Growing the asset base and associated long-term partnerships Pakaritanga – Supporting Māori wealth income derived is a key strategic objective of many of our clients and creation and investment aspirations. with iwi, hapū and Māori we work closely to create tailored organisations. We partner We work with iwi and Māori solutions. A particular example in the organisations to provide tailored Treaty settlement sector is assisting with our clients to develop financial solutions in order to meet post-settlement governance entities in business solutions that their strategic objectives. acquiring deferred settlement properties make a difference for this or right of first refusal properties. generation and those to come, both within Aotearoa and globally.

We are passionate about accelerating Further information on what our team do can be found online at: Māori success and we enjoy https://www.asb.co.nz/commercial-corporate-banking/maori-business-te-reo.html contributing to that through our knowledge, skills and experience. Nā tō https://www.asb.co.nz/commercial-corporate-banking/maori-business.html rourou, nā taku rourou, ka ora ai te iwi.

80 • KPMG • MĀUI RAU Organisational values Adding value is consistent with our organisational values which reflect how we work together to better serve our clients. Living and breathing them every day is integral to achieving our vision.

MANAAKITANGA AWHERO NGĀKAU TAPATAHI KOHARATIA Whakamiha me te tautoko Okea ururoatia Mahia te mahi tika Pūngao me te matangareka

CARING AMBITION INTEGRITY PASSION Respect and support Striving for the best Doing the right thing Energy and enthusiasm

Puāwai – Finding high value, sustainable Industry specific knowledge Strategic partnerships business opportunities for Māori. We have either within our team or In addition to providing funding We can connect iwi and Māori access to experts in specific industries, solutions to assist in business growth Organisations with commercial including the primary sector and and development, we also bring our investment opportunities that meet their agribusiness, seafood, technology and existing strategic relationships to the strategic objectives through strategic innovation, business ventures, Treaty table. We connect our clients to our input and idea generation. By way of settlement assets and entities, global corporate partners (such as Kea, the example we have provided revolving markets and exports. Examples include: Institute of Directors, Dairy Women’s credit facilities to asset holding entities Network, Xero, Co.OfWomen, Food —— Providing debt financing secured allowing them to execute quickly on and Grocery Council, Figure.NZ, and against fishing quota; commercial investment opportunities. Ranqx) in order to add value to their —— Funding against Māori Freehold Land overall business growth. Protecting business and assets to assist Māori Land Trusts to raise capital and increase productivity on We can help clients to protect their their farms; and business against damage, liability and disruption or the financial consequences —— Providing fully unsecured financing of a key person in the business to pre-settlement iwi Groups in becoming unable to work. We can also order to fund their Treaty negotiation provide tailored insurance packages for processes so they can concentrate individuals, family and staff. on obtaining the best settlements for their iwi members.

KPMG • 81 ABOUT THE AUTHORS

Riria Te Kirikaiahi Jamie Kanawa Mahutariki Rihia

Kirikaiahi Mahutariki is an Executive Jamie Rihia has worked for a number Joe Manager in the Māori Financial Solutions of large organisations within the team at ASB Bank. She has a legal professional services, banking and and professional services background finance industries. The common Hanita having advised various global and multi- thread in these multiple places is national organisations across a range of his involvement working with Māori industries, SMEs, and high net-worth organisations and businesses to bring individuals. For just over 12 years she the best people, thinking, solutions and Joe Hanita and Riria Te Kanawa are worked closely with various iwi and hapū networks those organisations could offer both Sector Drivers for Māori in the groups, and Māori businesses across to support Māori success. Performance Consulting team at KPMG. the motu on a range of commercial, They sum up their day-to-day role as structuring, Māori land and Treaty of empowering leaders, practitioners and Waitangi matters. Her overall drive decision-makers with the knowledge, is to contribute to the development ideas, tools and insights to design, of Māori to be prosperous and develop, deploy and assess their successful, as Māori. She is currently organisations and businesses; so to doing that through her role at ASB by do more for the collective benefit of supporting and enabling Māori business Māoridom. Joe and Riria also see their development and growth at all levels and role as bringing the best talent within across all sectors. In addition to her Te KPMG to the table and to translate Arawa and Mataatua heritage, Kirikaiahi’s and contextualise their services to Tongareva (Cook Islands Māori) and align with the Māori paradigm. Tahitian affiliations provide her with extra “We want all our Māori organisations momentum to drive indigenous business to be high performing, leaders within success. “Māori have a vital contribution their respective sectors and industries, to make in this world, and our success while intimately knowing they are will breed success across Aotearoa directly impacting the daily well-being and wherever we chose to walk in of their people.” this ever-changing globe. Ko te pae tawhiti, whāia kia tata; ko te pae tata, whakamaua ki tīna!”

82 • KPMG • MĀUI RAU We would like to acknowledge the contribution of our industry leaders in preparing this report. Our team and commitment to growing Māori business capability

Naomi Aporo Erena Most Trevor Newland Matt Mudford Aroha Armstrong Takurua Mutu Industry Leader – Māori Te Rarawa, Missy Armstrong Stephanie O'Sullivan Hamilton Ngā Puhi Awhina August Deidre Otene E: [email protected] E: [email protected] Carol Berghan Ashley Patea Moera Brown Julian Phillips Simon Hunter Jessica Wood-Waikari Timoti Brown Teaho Pihama Advisory Ngāti Porou Karen Burnett Cortnie Pineaha Auckland E: [email protected] Andrea Carboni Lester Pohatu E: [email protected] Anna Carr Mere Pohatu Precious Clark Keria Ponga Vanessa Clark Waikatana Popata Matt Prichard Chris Carrington Jason Clarke Pita Pou Audit Whakatōhea, Miriama Cribb Willow-Jean Prime Auckland Tainui Season-Mary Downs Robyn Rauna E: [email protected] E: [email protected] Karlos Drinkwater Kiriwaitangi Rei Kemp Dryden Mark Revington Cowan Pettigrew Arama Wakefield Nicole Dryden John Rigby Ngāti Porou Te Ati Haunui-a-Paparangi, Ngāi Tahu James Edwards Sonia Rimene E: [email protected] Nga Rauru-ki-tahi, Te Iwi Morehu Craig Ellison Anthony Ririnui E: [email protected] Rhys Faleafa Mita Ririnui Janet Falwasser Keefe Robinson Ashleigh Leggett Bonnie Cookson Figure.NZ Tupaea Rolleston Te Aitanga ā Mahaki, Te Arawa, Serena Fiso Annie Rolls Rongowhakata Ngāti Kahungunu ki te Wairoa Siuai Fiso Dan Rolls E: [email protected] E: [email protected] Mere George Jo-vanna Ropiha Lillian Grace Winton Ropiha Pauline Gray Kristin Ross Brylee Haapu Tamati Brooks Chelsea Grootveld Diane Ruwhiu Ngāti Kahungunu Te Āti Haunui-a-Pāpārangi, Uira Hall Lily Stender E: [email protected] Ngāti Rangi Glenn Hawkins Miriana Stephens E: [email protected] Madison Henry Tracey Stoneham Ruth Heta Sean Stratton Jasmine Hudson Josh Lodge Kim Hill Katie Tamanui-Thomas Whakatōhea Ngāi Tahu, Robett Hollis Rachel Taulelei E: [email protected] Ngāti Koata Tracey Hook Warwick Tauwhare- E: [email protected] Kiri Howell George Sharleen Howison Ropata Taylor Grant Huwyler Dan Te Kanawa Teri Kopa Danielle Wilson David Johnston Renee Thomas Raukawa ki Wharepuhunga, Ngāti Porou, Kerensa Johnston Maungarongo Tito Ngāti Hine Te Aitanga ā Mahaki E: [email protected] E: [email protected] Hera Kahpai Glenn Tootill Ty Kahu Marae Tukere Jaydene Kana Nadine Tunley Makarini Andrews Hana Siilata Sampson Karst Te Hau Tutua Waikato Tainui Ngāti Raukawa ki te Tonga, Te Mauri Kingi Frans van Boekhut E: [email protected] Tuhourangi Te Kani Kingi Wayne Vargis E: [email protected] Christina Leef Taylor Waenga Te Marino Lenihan Ashley (Hine) Waitai-Dye Tracey Stoneham Travis Manuirirangi Eru Lyndon Warren Walker Ngāti Maru, Ngāti Ruanui, Sacha MacDonald Len Walker Te Rarawa Ngāti Tuwharetoa Tipa Mahuta Paranihia Walker E: [email protected] E: [email protected] Mona-Pauline Mangakahia Puna Wano-Bryant Martin Mariasouce Alayna Watene Rangitane Marsden Paul White Jesse Hamlin Emma McGregor Henare Mason Naomi Whitewood Ngāti Porou, Ngāi Tahu Hori Mataki Ray Wihapi Ngāti Kahungunu E: [email protected] Poaniora Matatahi Warren Williams E: [email protected] Edda McCabe Tamati-James Wilson Lloyd McGinty Damyian Windelborn- Shanae Faletutulu Connor Chalmers Sacha McMeeking Rawiri Muaupoko, Ngāti Pu Raina Meha Francene Wineti Ngai te Ao E: [email protected] Jymal Morgan Tia Winikerei E: [email protected] Ana Morrison Talesha Wood

KPMG • 83 84 • KPMG • MĀUI RAU Māui Rau is a story of pride and purpose that we are proud to share.

We are the leap-frog generation – we are moving from settlement to something vibrant and exciting – from Kea to Kārearea.

KPMG • 85 Trevor Newland Kirikaiahi Mahutariki Industry Leader – Māori Executive Manager Partner – Audit Māori Financial Solutions Hamilton Auckland T: +64 7 858 6560 T: +64 9 337 4548 E: [email protected] E: [email protected]

Simon Hunter Anthony Ririnui Partner for Prosperity Head of Māori Financial Solutions Performance Consulting Tauranga Auckland T: +64 7 838 5897 T: +64 9 367 5811 E: [email protected] E: [email protected] Zane George Riria Te Kanawa Executive Manager Sector Driver – Māori Māori Financial Solutions Performance Consulting Tauranga Wellington T: +64 3 539 1633 T: +64 4 816 4730 E: [email protected] E: [email protected] asb.co.nz Joe Hanita Sector Driver – Māori Performance Consulting Auckland T: +64 9 363 3565 E: [email protected] kpmg.com/nz

© 2017 KPMG, a New Zealand partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. 01891