Two Brisbane entrepreneurs prove there are avenues for maintaining and improving profitability.
Thinking outside the box and capitalising on innovative ideas was the take-home message at this morning’s Q400 breakfast at Brisbane Technology Park.
Centor Architectural CEO Nigel Spork and Poolwerx founder John O’Brien revealed the secrets of their success, by outlining varying approaches.
Founded in 1951 by German-born engineer, Frank Spork, Centor Architectural’s mission was to produce the finest sliding door track available.
The successful business has now expanded into North America and Europe, and picked up numerous awards along the way, including the Telstra Queensland Business of the Year and AMP Innovation award in 2008.
However, third-generation owner Spork says it was not always smooth sailing.
In the 1970s and 1980s the company experienced a major strategic shift in the door industry, from wood to aluminium.
This set-back was a blessing in disguise, as it prompted Spork to look for other opportunities and capitalise on contemporary marketing.
Spork shares three models which he says are innovative ways to tackle product and workplace issues.
The first model illustrates the product life-cycle, something which Spork says must be acknowledged when pitching new ideas:
- Development
- Introduction
- Growth
- Maturity
- Decline.
Developing products to suit the marketplace as trends phase in and out is essential to keeping on top of the game, according to Spork.
“The approach we have taken is launching new products,” he says.
For Centor, this entailed a transition from screens to folding doors, DB locks to steel tracking and so on.
As interest in an old product dies out, Spork says you must add something which resonates with existing products.
The second model advocated by Spork is the “difficult people” table.
Within this model, employers can weigh up each employees function and fitness, and decide where attitude or performance can be improved.
A star employee is able to do their job well (function) and rate optimal listening skills and contribution (fit).
If a worker rates poorly in either area, their position must be re-assessed to ensure cohesion and success within the workplace.
While measurement is beneficial, Spork goes beyond an employee rating system by presenting a third model relating to difficult decisions.
“There are two types of difficult decisions,” Spork says.
“One is those that are difficult to make, and the other is those difficult to execute.”
Whichever one a business owner is procrastinating on, they must choose a decision and get on with business, Spork says.
However, he says the value in strategic planning is not in the planning, but in getting workers to complete day-to-day jobs.
To ensure the accomplishment of set goals, Spork recommends a “five-goal” system.
“The trick is to get five goals for the company into five goals for the individual,” he says.
By settling on “agreed outcomes” for every manager and worker across his stores, Spork guarantees the completion of everyday tasks.
The cascade effect of tying-up seemingly insignificant tasks on a daily-basis result in achieving corporate goals set by Spork.
Considering the track record of Centor, it is evident that Spork’s attitude and innovative direction has driven the company’s success.
Poolwerx founder and CEO John O’Brien offers a different, yet equally successful, business direction.
Brisbane-based Poolwerx has capitalised on franchising a once “unsophisticated” swimming pool and spa after-market.
Growing to 300 mobile franchises and retail stores across Australia and New Zealand, Poolwerx has capitalised on innovation by capturing a niche market.
Despite a global financial crisis, O’Brien says the current environment provides further opportunities for the business.
“It is our moment in the sun to grab market share from our competitors,” O’Brien says.
This is because most of Poolwerx’s innovation is being done in relation to business advantage.
O’Brien offers three tips as the baseline for success, which are modelled on the ‘Hedgehog Theory’ from Jim Collin’s Book, Good to Great.
Firstly, budding business owners should ask themselves, what am I deeply passionate about?
For Poolwerx, O’Brien says the answer is successful franchises.
The pool cleaning branch of Poolwerx originated 15 years ago, before developing into a fleet of mobile technicians and retail hubs.
From an innovation point of view, Poolwerx has certainly expanded from its original concept.
It has recently launched its fourth generation of franchising, which consists of a warehouse storage facility that allows satellite stores in higher-volume areas.
In addition, Poolwerx has paved the way for more consumer-friendly products.
“A lot of our innovation is in response to the government raising the bar on health and safety regulations,” O’Brien says.
Poolwerx has addressed issues such as handling by implementing the warehouse system.
It is also developing relationships with major banks, to allow cash-flow lending to new mobile franchise owners.
Secondly, O’Brien says business owners should determine what drives the company’s economic engine.
In the case of Poolwerx, O’Brien says his responsibility is to find every point of profit.
“We realised the commercial market was not being properly looked after,” he says.
Such a revelation resulted in the servicing of fountains and pools for hospitals, aged care facilities, resorts, defence and government.
Poolwerx has also become a registered training organisation, offers professional indemnity insurance and is building alliances with organisations such as Royal Lifesaving.
Finally, discovering what you can be “the best in the world at” is the closing tip from the water-care magnate.
O’Brien says becoming a leader in poolside service was his original game-plan.
On his journey to market leader, O’Brien has implemented innovation in many areas of his business to ensure distinction from competitors.
“We are the only company in Australia with e-commerce,” he says.
Poolwerx is also the first to solve government policy issues and channel most of its marketing through a website rather than television.
Overall, it is evident that both Poolwerx and Centor are making the most of the downturn by turning negatives into positives, and using innovation to stay ahead of the market.
This morning’s breakfast bolstered other business-minded entrepreneurs to look at their own options, and determine how innovation can drive activity.
“During the GFC there are many more opportunities for businesses to zig while the others are zagging,” O’Brien concluded.
The next Q400 event will be held on August 7.
To view photos of today’s event, click here.