Without a doubt, one of the hardest parts of managing people, particularly during performance conversations, is dealing with defensiveness.

However, if you are skilled enough to identify defensiveness and handle it effectively, before it sets in and takes over, your discussions can be focused on: the future, on solutions and next steps, as opposed to being stuck in protectiveness, the past, and who’s to blame.

Understanding the mechanics of the mind, and how the brain works, is critical to learning how to manage yourself and develop new behaviours for dealing with defensiveness.

So let’s have a look at some of the signs of defensive behaviour:

1. Rationalising

AKA: explaining yourself & making excuses.

With this pattern, you might find yourself saying "yes, BUT..." an awful lot.

So someone might make a comment, and you say "yes, BUT!" and you will explain why you have to do things the way you do or explain why the other person is wrong. You feel that you have to justify your behaviour and act as though their questions or comments are attacks on you.

Someone might say to you; "I’m really disappointed that you can’t come to the lunch." When rationalising, you would end up getting upset with them and explaining the numerous reasons why you can’t go to the lunch rather than just acknowledging that this person might just miss you.

2. Blaming

With blaming, you shift the focus from yourself by making the other person (or people) the reason for your behaviour or the way you feel.

For example, if you didn’t get to work on time it’s because someone didn’t wake you up or you just missed the bus because the insensitive bus driver didn’t stop when he saw you.

It is always someone else’s fault with this pattern.

3. Attack and Counter Attack

You might complain about a problem you’re having, and when the other person gives you some insight into the role you play in the problem, you attack or judge them.

You say; "huh?"

You feel indignant, you feel wounded or misunderstood by the suggestion that you might play a role in your own problems.

You might accuse them of being mean and insensitive, or you counter attack by drawing their attention to something that they’re struggling with and how ineffective they have been!

4. The Need to be Right

… or the need to make others wrong.

Characterised by a tendency to see why things won’t work or point out flaws. This can take a few different forms.

It can be an oppositional style which is characterised by stubbornness, sarcasm, cynicism.

You know the one, “…as if that’ll work!”

It can be a controlling, authoritarian style where things can only be done one way.

It can be a competitive style which is what we call a win-lose mindset where you need to beat the other person; you always need to be one-up on them.

Know Yourself & Neutralise Defensiveness

You will never handle defensiveness in others well if you can’t handle your own defensiveness. Self-awareness must always come first.

When you find you are displaying defensive signs, start by asking yourself, “What am I feeling?” and then labelling the feeling. If you cannot do this immediately, you might need to notice what behaviour you are displaying or contemplating.

For example, are you shutting down emotionally or are you winding-up emotionally? It’s important to notice and label this feeling because this will help quiet down the amygdala (the emotional brain).

The next thing to do is tune-in to your body, your physiology.

Notice what’s happening in your body.

Is your breathing shallow? Is your heart pounding? Are your muscles tense? Because the first sign of defensiveness might be an emotion, or it might be a bodily sensation, it might be like a jolt of energy where you feel the protectiveness kick in.

Self-awareness is our foundation strategy in the Great Managers Academy. This skill will strengthen you professionally, personally and put you in the top tier of leadership.

Click here to find out more about the Great Managers Academy and how you and your Managers can neutralise defensiveness in your workplace.

Marketingheads Kaye McIntyre and John Wakeling are very proud to be the winners of the Excellence in Marketing award for 2017.

The Excellence in Marketing award recognises businesses that utilise a variety of marketing tools and techniques to effectively promote their business whilst engaging the end user.

John Wakeling said: “We are very proud to be in the winner’s circle. Virtually all our growth originates from referrals and repeat business. We are honoured to be part of a professional network that values excellence in an ethical framework where our goal is to achieve exceptional results for our clients.”

Marketingheads were also a finalist in the Excellence in Small Business category and received a highly commended award at the Gala event. This award recognises a company that has attained significant growth and is able to demonstrate the specific strategies and processes implemented to achieve sustainable growth.

The Premier of NSW the Hon Gladys Berejiklian MP provided an insightful overview of Western Sydney as a key economic hub and gave her vision for its development in the future. Clearly Parramatta and Western Sydney are the place to be for businesses with a mindset to grow and prosper.

Kick off your festive celebrations with Parkroyal Parramatta's range of Pre-Christmas Dining Packages at TABLE 30.

For only $59 per person, enjoy a pre-Christmas lunch or dinner which includes unlimited soft drink.

Table 30's succulent Premium Seafood Buffet is only $69 per person and is available every Saturday night from 6.00pm to 9.30pm. 

Click here for further information or to book. 

Making sense of the pace of change

If you feel like things are changing at an increasingly rapid pace, you’re not alone. We are well into the ‘fourth industrial revolution’, where transformation is happening 10 times faster than the first.1

Fintech, the internet of things, machine learning – terms like these are the currency of this new digital economy. This article makes sense of the jargon, and looks at what they really mean for your business, your clients and the way your industry will operate in the future.

The rise and rise of – techs

From lawtech and insurtech to proptech, digital disrupters are leveraging new technology to create entirely new service models for both consumers and businesses.

“All of these techs are potentially new competitors in your market. And they have more muscle than you might think.”

Innes Kirkwood, Macquarie Business Banking’s National Head of Residential and Commercial Real Estate, describes ‘proptech’ as “technological innovation specifically designed to improve processes and remove friction in the real estate sector,”

“Most proptech innovations start with the client experience, and focus on improving one (or all) of the ‘three Ts’ – trust, transparency and time,” he explains. “In every area of real estate there are manual, inefficient processes and a lack of transparency. They can also reduce costs, enabling highly competitive pricing.”

Investment in these tech platforms has increased exponentially. Four years ago there was around $US221million invested into property technology – now proptech is attracting over $2.6 billion in capital.2 That’s a 1,200% increase – in just four years.

One example is Rentberry, which removes friction in the letting process. “This could disintermediate the property manager for that part of the process,” comments Kirkwood. Another is Macquarie’s new DEFT Auction Pay, which finally removes the need to pay a home deposit by cheque on auction day.

Click here to read the full article.

Macquarie has been providing Business Banking solutions for over 30 years and provides SME clients with tools and strategies to grow and develop their business. You can get regular updates by subscribing to the monthly newsletter, Strictly Business by visiting macquarie.com.au/businessbanking. If you would like to find out more about how Macquarie can support you to take your business further, call Sam McCarthy at our Parramatta office on 0417 518 724 and be connected with one of our banking specialists.

This information has been prepared by Macquarie Bank Limited ABN 46 008 583 542 AFSL and Australian Credit Licence 237502 (“Macquarie”) for general information purposes only. This information does not constitute advice. Opinions expressed are subject to change without notice. No member of Macquarie accepts any liability whatsoever for any direct, indirect, consequential or other loss arising from any use of this information.

1 The four global forces breaking all the trends. McKinsey, April 2015

2 Real estate technology – Threat or opportunity? KPMG, May 2017

Campbelltown’s skyline is set to be transformed with work now in progress on the $16 million expansion of Rydges Campbelltown.

The exciting new look for the four-and-a-half star hotel will include an upgraded terrace area, an extra 38 rooms, stylish refurbishments to its existing 116 rooms, as well as brand new event space for corporate and social occasions.

For the business traveller, managers, and local companies, new and bigger conference facilities will accommodate 200 attendees.

Hotel general manager Brett Barlow said it will also prove a boon for weddings.

“This expansion will provide Campbelltown with a brand new contemporary ceremony, reception and conference venue,” he said.

“The wedding sector is a market that we haven’t promoted heavily to date, but you can be assured it will be THE place to celebrate your special Day, and even a weekend!”

“On-site ceremonies, reception space to spread out, and accommodation to cater for travelling loved ones – the ideal one-stop location to tie the knot!”

The new accommodation tower has been designed by Scott Carver Architects, who were also the designers of Aquafit Leisure Centre, The Cube Entertainment Centre and the renovated Campbelltown Catholic Club – which are all located within the one destination precinct in the Campbelltown CBD.

Campbelltown City Council General Manager, Lindy Deitz, has described the expansion as a wonderful success story for Campbelltown.

“Rydges Campbelltown is an asset not only to Campbelltown, but to the entire south west Sydney region.

“Campbelltown is transforming into a destination where people choose to visit for a number of reasons, including business, sport and recreation. The latest expansion of the hotel will place Campbelltown in a position to continue to cater for this increased visitation.”

Rydges Campbelltown, which includes also OTIS Grill Bar with its own micro-brewery, has thrived since it opened in 2007. The hotel expansion and refurbishment is expected to be complete by July 2018.

For more information on Campbelltown City’s business success stories, visit www.investcampbelltown.com.au

The City of Parramatta Council's Night Time Economy Discussion Paper is now on exhibition.

This document proposes ideas to develop the City’s future Night Time Economy Strategy – a framework that will further encourage the City at night as a vibrant, diverse and welcoming space. The discussion begins in areas that have an existing night time economy, where there is potential for sustainable growth: Parramatta CBD, Harris Park and Epping.

The paper is structured around seven key themes, being:

• Safe and vibrant centres;
  
• A competitive economy;
  
• Live music and recreation;
  
• Creative spaces;
  
• Celebrating our diversity – welcoming everyone;
  
• Events and activations; and
  
• Easy to get to - easy to get home.
  

The key themes have been developed through a number of engagement and consultation activities including surveys, focus groups and interviews, undertaken with residents, visitors, business owners and key stakeholders, hearing what these groups consider most important to them in terms of a desirable night life. The Discussion Paper brings together what Council have heard so far and consolidates this for further discussion.

Council invite you to comment on the questions and ideas outlined in this discussion paper. Your input will help Council develop a night time economy Strategy for the City of Parramatta LGA.

Have Your Say

The Night Time Economy Discussion Paper and supporting information will be on public exhibition from Monday 21 August to Friday 22 September 2017 and can be viewed in the following ways:

- On Council’s On Exhibition Page on their website

- Visit City of Parramatta Council Administration Building:

Ground Floor, 126 Church Street, Parramatta: Monday – Friday 8.30am to 4.30pm

- Visit Parramatta Central Library:

1-3 Fitzwilliam Street, Parramatta: Monday – Friday 9.30am to 8pm; Saturday 9.30am to 4pm; Sunday 2.00pm to 5.00pm

All submissions received will be considered before it is endorsed by Council. Any submission received may be made publicly available and may include the name(s), address, signature and contact details provided. Please ensure to note in your submission if you wish for your details to not be made public.

All submissions are to be received by 4:30pm Friday 22 September 2017.

Submissions can be sent to:

Night Time Economy Discussion Paper

City of Parramatta Council

PO Box 32

Parramatta NSW 2150

Council will also accept e-mailed submissions sent to economicdevelopment@cityofparramatta.nsw.gov.au and faxed submissions to: (02) 9806 5913.

For further information, please contact:

Harumi Arrascue

Project Officer – Economic Development

P: 9806 5818

Western Sydney’s latest major infrastructure project is one step closer with the Parramatta Light Rail Stage 1 Environmental Impact Statement now on exhibition so the community can have its say. Parramatta Light Rail Stage 1 will connect Westmead to Carlingford via Parramatta CBD and Camellia over a 12 kilometre route.

Transport for NSW has prepared an Environmental Impact Statement (EIS) for the Parramatta Light Rail Stage 1 project to address design options and the associated potential environment and social impacts arising during construction and operation of the proposed project. EIS for Parramatta Light Rail Stage 1 will be exhibited by the Department of Planning and Environment from August 23, 2017 to October 23, 2017. Parramatta Light Rail must undergo environmental impact assessment under the Environmental Planning and Assessment Act 1979 (EP&A Act). Approval from the NSW Minister for Planning is required following public exhibition before Transport for NSW can proceed with construction of the project.

The full Environmental Impact Statement and its accompanying documents may be viewed on the Department of Planning and Environment’s website (www.majorprojects.planning.nsw.gov.au) where you can also find out how to make a submission on the Parramatta Light Rail proposal. Submissions must be received by 5.30pm on 23 October 2017.

You can also view project documents at www.parramattalightrail.nsw.gov.au. During the public exhibition period, Transport for NSW will be holding community information sessions where members of the project team will be available to answer your queries. Information about these sessions is available on the Parramatta Light Rail website or by clicking here.

Business owners and managers are constantly looking at the most effective ways to remunerate their employees. There is a long list of alternatives, ranging from cash to equity (and lots in-between).

Below is a list of the key considerations when designing and implementing an arrangement that will attract, reward and retain key employees and non-employees, such as contractors, consultants and directors.

Tax will often be a key driver in structuring incentive arrangements, but other legal and commercial considerations will also come into play.

The comments below are general, and many will require some planning to navigate the interaction between tax, company law and the commercial drivers for the arrangement. You should consult your legal adviser on these matters.

1. Equity or cash?

Cash is a simple way of rewarding employees, but it isn’t particularly tax effective; nor does it specifically assist in retaining key employees once the cash is paid. Equity can be more tax effective than salary, provide greater financial upside, but it does require a consideration of a broader range of issues than cash.

2. The problem with cash incentives

Whether by way of salary or bonus, cash is taxed on receipt at an employee’s marginal tax rate, so your employees may lose half of what they’ve earned to tax. But there’s no doubt, cash is a simple strategy that can be made subject to the meeting of KPIs and company law compliance obligations are typically not a factor that needs to be considered.

3. Not quite equity? Shadow (or phantom) equity

Shadow equity is a means of paying an employee a cash incentive calculated as if the employee owned equity in the company. While these arrangements offer the benefit of greater upside in reward – as equity will often increase in value over time – the tax outcome for employees is no different than being paid cash. However, unlike cash, the company will need to consider whether company law imposes obligations that require disclosure documents to be prepared and impose licensing requirements.

4. Equity

Be it in the form of shares or options, equity is usually structured to give a tax deferral benefit under the ‘Employee Share Scheme’ (ESS) tax rules. Tax is deferred until the employee can realise the benefit in the equity (‘deferred tax time’), such as when options are exercised or shares are no longer subject to forfeiture. The trade¬off is that the employee pays tax at their marginal rate on the value of the equity at the deferred tax time.

5. Don’t forget there may be tax to pay on sale

Employees who receive equity will usually be subject to a tax event when they sell their shares (or options), even after paying tax at the deferred tax time. The gain on sale will typically be taxed as a capital gain, so the 50% CGT discount may be available.

6. Start-up tax concessions

The ESS tax rules have recently changed to make equity far more tax effective for employees of ‘start-up’ companies. Employees are only subject to tax on the sale of their equity (not on vesting or exercise) and any gain is only subject to CGT. However, there are strict rules that define which companies qualify as a ‘start-up’, some of which require a consideration of the start-up’s investor base and other entities in its corporate group.

7. The non-tax legal considerations

The company needs to consider whether the issue of equity (or even shadow equity) triggers company law requirements to prepare some form of disclosure document or if the company needs to be licensed for AFSL purposes. An exemption from these requirements will often apply in the case of an employee share scheme, but the exemptions only apply if specific conditions can be met.

8. Company tax deduction

The employer may be able to obtain a tax deduction for the full value of the equity that is provided to its employees. The deduction requires some planning and typically requires a trust to be established to manage the equity plan. This can add to the complexity of the incentive arrangements in terms of additional documents (or more detail in the standard incentive documents) and potentially more compliance obligations. Remuneration arrangements can also have other tax risks for the employer, such as payroll tax and fringe benefits tax that need to be considered.

9. Employee benefit trusts

These types of arrangements are increasingly common and are often used when the ESS rules cannot apply or when a business owner doesn’t want to offer equity in the company to its employees but wants them to share in the increase in company value. These arrangements can often be more complex than the ‘usual’ form of ESS arrangements. They have also come under the close scrutiny of the ATO and must be carefully planned and implemented to avoid adverse tax outcomes.

10. Drafting the incentive arrangement - don’t forget employee leaver arrangements

A well-drafted plan should set out the terms of the incentive arrangement and deal with future events as completely as possible so everyone knows where they stand, say if the company is listed in the future. In particular, the incentive documents need to set out what happens if an employee leaves. Many owners of private companies don’t want ex-employees to hold equity, so the incentive documents need to address how equity is handed back. Different tax outcomes can arise for the employee depending on how the equity is returned and some are more tax effective than others.

For further information please contact:

Anthony Bradica

Partner

Hall & Wilcox

Phone: +61 3 9603 3523

Email: anthony.bradica@hallandwilcox.com.au

Energy costs are a major concern for business with Australians paying amongst the highest electricity prices in the world. Market uncertainty and rising prices are an obvious problem for companies but a new Australian CleanTech company SolarCloud is about to change all that.

SolarCloud helps individuals and businesses save money on energy. It provides all the benefits of solar power without the usual expensive cost and hassle.

Residential and small business customers can invest in solar power without touching their roof. In fact, you don’t even need a roof at all! Making it suitable for everyone including renters and simply investors.

Commercial customers can potentially become SolarCloud hosts and access all of the benefits of solar without the usual upfront capitol or ongoing costs.

SolarCloud offers a range of energy efficiency services to help businesses achieve optimum energy savings in addition to solar. It helps businesses to reduce the power they consume and the price they pay for it.

Businesses underestimate potential savings achievable through solar energy, LEDs, voltage optimisation, power factor correction, better brokering.

Every company is different but SolarCloud can usually expect to find significant savings. The best approach to the overall energy savings is to address all of potential energy reduction opportunities first then install solar to power what’s still needed.

Book your free Energy Usage Assessment to see how and where your business can save money. Email John Kennedy john@solarcloud.com.au or call him 0434 007 008 www.solarcloud.com.au

Angela Haynes has recently joined as a Director in KPMG’s growing Restructuring Services (RS) team and is based at Parramatta to expand these services into Greater Western Sydney.

Angela has practiced in restructuring and turnaround for the past 11 years. This is the first time KPMG have had a dedicated RS-GWS practice and from feedback, the market is very welcoming of Angela and this local KPMG capability.

Restructuring Services are no longer ‘undertakers’ or ‘bad guys’ as once known. KPMG’s RS team has a skill skills that enable much earlier intervention, when symptoms of distress arise, before it is terminal. Examples may include:

- creditor & bank pressure;

- failure to thrive;

- running out of cash;

- declining profitability;

- covenant breaches; and

- a need for turnaround.

For performing companies not in distress, KPMG has a Rapid Diagnostic service that can identify opportunities for savings, cash release and optimisation of financial and operational performance through the 9 levers of value.

For critical and urgent circumstances, or where creditors are commencing legal action, KPMG are very experienced in understanding and diagnosing quickly. Options are greater if a company acts early. If Voluntary Administration or Liquidation is required, KPMG are well regarded, sensitive and responsible. Confidentiality for sensitive matters is paramount.

At times a Board or Management may sense an underlying problem but cannot put their finger on it. Other times, issues are clear as day. This is when specialist advice comes into its own.

About Angela

Angela grew up and schooled in Greater Western Sydney undertaking a B Com(Accounting) at WSU. She then gained her Chartered Accountant qualification and has over 25 years commercial & financial business experience. Angela looks beyond the obvious and delivers practical strategies for responding to change, performance and cash flow challenges with options designed to restore and improve value.

She is experienced in both restructuring and turnaround and providing deal services across the business lifecycle:

• working with companies through expansion, contraction or distress to maximize value & outcomes;
• providing early intervention & performance improvement to stabilize or return to growth;
• solvency reviews, strategic advice, external administrations, solvent and insolvent liquidations and stakeholder representation;
• interim management including CFO and CEO;
• advising & assisting transactions and post deal integration following mergers or acquisitions;
• project managing deals including due diligence, sale agreements, completions, and 100 days plans.
• enhancing provision of smooth functioning, properly managed finance and operating environments.

Angela’s industry experience spans manufacturing, financial services, NFP, transport, bloodstock, wine, timber, education, aged care, religious organizations, horticulture, utilities and hospitality.

She is completing a Graduate Diploma in Corporate Governance & Risk Management. Is presently on the Board of Athletics NSW and formerly on the NSW Veterinary Practitioners Board. She has also community positions with Woodstock Runners, Bankstown Council and the UWS Student Association.

Angela will travel and is very happy to chat through options and ideas and can be contacted any time on 02 8841 2150 or 0419 444 010. Her email is ahaynes1@kpmg.com.au.