KEY POINTS:
Vector chief executive Mark Franklin faced a rocky year. In August the Auckland energy distributor was caught off-guard by a Commerce Commission investigation into its prices, then just before Christmas three of its independent directors walked out in protest against chairman Michael Stiassny's governance of the company.
How
would you describe last year for Vector?
There is no denying that Vector has had a challenging time - as you would expect for a large, complex multi-utility company. So certainly it has not been an indifferent year, but one that has had its highs and lows. I have been very proud of my staff who have remained positive and focused on what we need to achieve as a company.
What was Vector's greatest achievement?
We have worked hard to consolidate our different business streams into a strong structural foundation. This means that we are well positioned to help deliver the additional infrastructure required to support ever-increasing utility services demand.
But I would particularly like to note the developments that have been made within the wholesale gas market with open access being achieved on the Maui pipeline, and our securing of extra gas under the Maui redetermination settlement. And also, perhaps most significantly, the positive progress we have made with the Commerce Commission with their acceptance in principle of our administration settlement.
And greatest disappointment?
I don't really focus too much on disappointments, but rather see difficult circumstances as presenting opportunities to find another way to approach a problem. You can't expect to get through a year without some good and bad times, the challenge is to keep focused on the long-term goal and seek creative and positive solutions.
What will be the major challenges for Vector this year?
There are a number of complex challenges and opportunities ahead of us. In particular there is the changing structure of the energy sector, what we can do to help realise the Government's energy strategy, how we can respond to the uncertainties imposed by climate change, and what we need to do to ensure our technology enables the most effective and efficient use of energy for our customers. I am particularly excited by the opportunities presented by technological convergence, which enables separate technologies to share resources and interact with each other.
What do you expect from the economy this year and how will that affect Vector?
More of the same and we will continue to look for opportunities within that environment.
What was the most interesting business story of 2006?
Qantas - seeing how the company had grown, the private equity buyout was unexpected.
Who was your mentor? What did they teach you?
There have been a number of people in my life that have influenced my direction and focus.
I have had some inspirational managers that have taught me a great deal, and I have had some managers who have taught me what not to do. Very influential for the development of my own management style.
Where are you going for the holidays?
Noosa.
What will you be reading?
I intend to read some biographies that I have missed reading throughout the year.
Business Book I've read over the past year
I tend not to read business books. Right now I am reading Jonestown.