Be ready to defend your home patch

RESILIENCE: Icehouse Hawke's Bay manager Michaela Vodanovich (right) hosted the Icehouse Roadshow this week, fronted by Icehouse director of strategy and development Lisbeth Jacobs (left). PHOTO/PAUL TAYLOR A59H7890

A Business of International Quality (BIQ) is about defending your home turf as much as it is about growth or exports, says Icehouse director of strategy and development Lisbeth Jacobs.

"When we talk about businesses of international quality we are not talking about businesses that just export," she said.

"Often people hear the word international and think it is not relevant to them.

"We are talking about businesses they can take their goods and services internationally, but we are also talking about businesses that can stand their ground domestically against international competitors, which inevitably will happen."

She said the best example was IKEA in Europe, the global furniture giant.

"They really took the world by storm and luckily for your local furniture stores they have not come to New Zealand.

"I remember when they came to France and Germany and Belgium.

"Overnight 95 per cent of the local furniture stores went under.

"They were not innovating and not ready for the disruption that a business that IKEA brought.

"They had not been listening to their customers and they literally disappeared. It changed the landscape overnight.

"Business of International Quality really means you have the robustness to withstand a competitor that decides to come to New Zealand and attacks your domestic market.

"It is about being really robust in your own space."

Ms Jacobs was in Napier on Thursday for non-profit business growth agent Icehouse's roadshow, promoting the online BIQ barometer.

It was conceived 18 months ago and found several areas of weakness New Zealand processes, such as people processes.

Jane Kennelly of Frog Group - formerly the New Zealand general manager of Lampen - spoke on why people processes were "vital to business performance".

Creating a competitive advantage was about having "the best possible people in your business".

Workforce planning was important for growth so that staff on the ground matched plans for the business.

The cost of the poor hire was high and "emotionally draining".

The BIQ barometer also found the protection of intellectual property to be a common weakness, which patent attorney Sarah Barclay addressed.

She said intellectual property was a tool and should be matched to business strategy.

"About half the people I talk to end up not patenting their product," she said.

Keeping trade secrets instead of patents could be just as effective, as shown by Xero's success.

"Keep your ideas secret and don't sell them until you see a lawyer or a patent attorney."

The next Icehouse roadshow will address governance, another area of weakness according to the barometer.

"I'm not talking about fully fledged boards, I'm talking about getting the right independent advice," Ms Jacobs said.

"It is good to have a new set of eyes that is independent of your banker or lawyer.

"Somebody that preferably has a little bit of experience in that industry. Somebody who can walk that path with you, because it's not always easy."

The cost of the barometer is $249, including GST, and takes about 45 minutes to one hour to complete.