eKourier July 2014

Kennards Kourier

July 2014

Constructive Culture Remains at the of KSS

T he results are in for our 2014 (OCI) Organisation Cultural Inventory Survey, and I’m pleased to announce the results have revealed an overall positive change. The Circumplex shows an increase in Blue Constructive Behaviours and a decrease in the Red Aggres- sive and Green Passive Defensive Behaviours. Kennards has been measuring culture using the OCI Circumplex for 16 years and the results over many years have been very positive; this creates a challenge for the business to continu- ally improve on the results each year. It’s very exciting to see such a positive change in this year’s results, indicating that changes and initiatives introduced over the last 12 to 18 months have had a positive impact on the business. Out of the 12 Behavioural Styles on the Circumplex our two strongest styles are represented with the greatest extension in colour being; Humanistic Encouraging (Blue) with the greatest extension in colour representing our primary style at KSS. This is where Team Members are expected to be supportive, construc- tive and open to changing their minds in their dealings with each other. This in turn encourages active involvement from members who feel satisfied and engaged with the overall outcomes for the business and each other. Achievement (Blue) is our Secondary Style characterises an organisation that does things well and values members who set and accomplish their own goals. Members of these organisations set challenging but realistic goals, develop

Kennards Self Storage 2014 Circumplex

plans to reach these goals and pursue them with enthusiasm. Our Primary and Secondary Styles are highly influential in building a high performing sustainable business where Team Members feel valued and empowered to go about their day with purpose.

the OCI survey has also revealed opportu- nities for us to explore and develop further so that we may continue to improve and be a better company. Look out for our full summary in the coming weeks.

Darren Marshall General Manager

In addition to the overall positive result,

1

Kennards Kourier July 2014

WHO’S WHO

Team Member Profiles

In this issue Constructive Culture...

1

Cindy Flitter Assistant Manager - Panorama

Team Member Profiles

2

10 Questions with...

3

Career background: Finance Clerk at John Martins, Brick Layer/Manager for 15 years and Maggie Beer as a Warehouser Marital status: Separated Any children? Jesse - Apprentice Baker at Bakers Delight and Chelsea - Year 11 at School Hobbies/interests: Spending time with my family and friends, fishing camping and reading

Understanding DISC

4/5

A Night to Celebrate Achievements

6

The Benefits of Insurance

7

Customer Feedback

7

Kia ora New Zealand

8

Our Values, do we know them?

9

It’s all in the Offering

9

Big Data/ Which Data?

10

No Margin for Error

10/11

Do you play any sport or have any special talents? Not really, all round person. I like Football, Basketball and Tennis. Favourite Book: All books by Radclyiff Favourite movie: I have a wide variety Favourite restaurant/food: Seafood, but no real favourite restaurant Where did you grow up? Kersbrook, Adelaide Hills. It was excellent, the best place to bring up children. Very open, farm and horses. Any pets? No Favourite holiday destinations: Yorke Peninsula, Port Vincent

Libertarian Legacy Honoured...

12

Customer Feedback

12

Outgrown Your Home 13 Wine Storage Specialist Training 14 Training in Abundance 15 Spotlight on Hornsby 16 Mittagong to Enjoy a Summer Opening 17 Lou’s Place - Rebuilding Lives 18 Nevs Notes 19 Kennards Community 20 Next issue Deadline: September 15th, 2014 Please send contributions to the editor Editor: Sharon Dux Email: sharon@kss.com.au Distribution: October 17th, 2014 Upcoming events 2/8 - KSS Achievement Dinner 11/8 - Royal QLD Show - Browns Plains, PH Hours 11/8 - Royal QLD Show - North Lakes, PH Hours 13/8 - Royal QLD Show, Brisbane Centres only (excludes Browns Plains), PH Hours 29/8 - Gold Coast Show Day - Burleigh Junction, PH Hours 3-4/9 - Skillbuilder (SA)

Ashley Naidu Assistant Manager - Artarmon

Career background: Previously employeed as a full time Sales and Marketing Coordinator. Currently studying a Master of Law Degree (Intellectual Property) via UTS, Sydney Hobbies/interests: Mixing music, Travelling, Gaming Do you play any sport or have any special talents? Boxing Favourite Book: The Tipping Point by Malcolm Gladwell Favourite movie: Pulp Fiction Favourite restaurant/ food: Relish, Shell Harbour Where did you grow up? Sydney, busy but beautiful! Any pets? None yet but would like a Bearded Dragon

8-12/9 - Skillbuilder (NSW) 15-19/9 - Skillbuilder (NSW) 23-24/9 - Skillbuilder (VIC) 28/9 - Daylight Savings (NZ) 29/9 - 3/10 - Skillbuilder (QLD)

Favourite holiday destinations: Netherlands - good music, food and culture.

5/10 - Daylight Savings (NSW, VIC, ACT, SA) 6/10 - Labour Day (NSW, QLD, ACT, SA) PH Hours

Kennards Kourier July 2014

2

WHO’S WHO

10 Questions... With Sathish Gopinath - Financial Controller

when you first moved to Australia?

Kennards is one of the very few businesses that I have been a part of where a lot of what the business stands for; its values, culture, beliefs etc. are in perfect sync with mine. I feel very proud and privileged to be part of a very ethical business. Tell us about your recent role change within Accounts? I am thoroughly excited. From being responsible for the Financial Reporting of one(investment) portfolio with in the Kennards business, to playing a larger role in the overall Financial Reporting of the Self Storage portfolio. This has given me the opportunity to interact and work ‘with’ the wider business. In a dynamic business like ours, there is always the need to constantly review processes and systems to keep pace with the growth. I would like to think that it is more than a number crunching role that facilitates improving efficiency and performance rather than just measuring performance. As part of my new role within Finance, the focus is to deliver significant efficien- cies resulting in benefits across the Finance Team as well as consistent and better quality information to the wider business. On a macro level, I am passionate about working with the business to explore improvement and growth opportunities. The starting point for me is merchan- dise. There is a lot of untapped potential and it has the propensity to become a business in itself. I think this has been slightly neglected in the past. I am delighted to be a part of what we are doing in this area, enjoy the interac- tion with the Team Members and I am learning a lot. The job has just begun, a long way to go. I must say that this opportunity has helped me to ‘open up’ a lot in a short period of time, surprising myself (and others) at times. What is your main focus at the moment?

I was living outside of India (in Russia and UAE) for over five years before moving to Australia. Completely contrasting and unique social, political, climatic and professional environments to what we have here. Australia was ‘different’ and the change was refreshing. I Had to start life with a clean slate, it has been quite a challenge. I am here with my wife and five year old son. My parents are in India, both of them now retired. I have one younger sister who lives with her family in Canada. What hobbies or interests do you have? I was a voracious reader, not anymore, though I still enjoy reading varied topics. Enjoy playing and watching cricket and tennis. Played for my college cricket team before demanding academics took over. Love spending time with my family and playing with my son. I meditate and enjoy a nice quiet walk with my family. You have attended a number of training courses and team building exercises within KSS, have you found them beneficial and in what ways? My first PEP in Nov 2007 was life changing in a lot of ways, followed by LSI 2 in 2008 and 2010 that facilitated in incorporating feedback from fellow Team Members. I have learnt a lot about myself and continue to do so. For an introvert like me, the opportunity to open up and let go of emotions and make the most of it has been rewarding. I have not been part of any organisation that cares about professional and personal development as much as Kennards. Can you sum up Kennards in one word? Kennards truly lives up to what it stands for – FREEDOM. It makes a lot of differ- ence when people accept and respect you for what you are. Tell us about your family?

How long have you lived in Australia and what bought you here? I have been in Australia for 12 years now. Got my MBA admission in the U.S. but things didn’t go to plan. Then decided to apply for permanent residence in Australia and continue higher studies and the rest is history. This is home now. When did you first start with KSS and what were you doing? I started with KSS in July 2007 as a Financial Accountant for the KVSI Portfolio – the Joint Venture between Kennards and Valad Property Group for the Millers Acquisition. It was a ‘business within a business’ (back then). The structure was constantly changing with Kennards deciding to buy out Valad in June 2008 and investment increasing from 50% to 75% and to 100% by June 2010. With this came the additional statutory accounting and reporting requirements. The complexity of the structure and ownership was something that presented enormous challenges and opportunities for me to learn. The journey was very exciting (lonely at times), however I thoroughly enjoyed every bit of it. How do you find KSS compared to other places you have worked?

What changes did you experience

3

Kennards Kourier July 2014

FEATURES

Understanding DISC

observable — it’s on the outside for all to see, whereas personality is not. DISC is not a measure of who we are, but simply how we tend to act and communicate, which we can adjust at any given moment to suit the situation. A lack of understanding of ourselves and others can lead to real problems such as tension, disappointment, hurt feelings and most commonly, poor communication. You may have experi- enced how hard it is to deal with a problem, when you don’t know what is going on inside the mind of the other person. Understanding DISC and the human behaviour model, will help you to understand how people behave and how they are motivated. It will teach Different is not bad, it’s just different!

you how to create healthy relationships, reduce conflict and relate to others in ways that are more effective. Since our communication style affects every interaction we have with others, DISC becomes an extremely useful tool, both in the workplace and at home with family and friends. DISC does not determine right or wrong behaviours, it reveals how individuals behave when confronted with conflict, how they prefer to show their emotions, react to change or how they accommo- date other people or situations. “If I understand you, and you understand me, doesn’t it make sense that we work more effectively together?” – Dr Robert Rohm This four part series will focus on each of the “behaviour styles”, from a practical view point. We begin with the “D” behaviour style.

W hile it is common to think that DISC is a person- ality test, it is in fact a behavioural assessment. DISC explores four traits within our personality. Personality is much, much more than our behaviour and includes things like our values, passions, beliefs, sense of humour, character, ethics and emotional intelligence. Behaviour is

Con’t page 5...

Kennards Kourier July 2014

4

FEATURES

D Behavioural Style “You say your workmate is pushy, rude and totally unreasonable? Well, that’s because of his High D…. Right” There is no doubt that High D’s can sometimes rub certain people the wrong way since they have a tendency to be outspoken, candid and won’t shrink from confrontation. So the statement we so often hear is “Is their high D the reason the person is rude and abrupt?” And the answer is no, absolutely not. “ Understanding DISC and the human behaviour model, will help you to understand how people behave and how they are motivated. ”

If someone is thought to be “rude or abrupt”, it often has to do with their level of emotional intelligence or underlying core motivators. There is a fine line between being assertive (a common hallmark of the D Style) and being rude (a common hallmark of low EQ). Emotional intelligence determines whether you experience the D style as a quick cuddle, or as a tactless sledgehammer. What are the general character- istics of the D Style? The D Behavioural Style tends to be direct and decisive. They would prefer to lead than follow and tend towards leadership and management positions. They tend to have high self-confidence, are risk takers and problem solvers, which enables others to look to them for decisions and direction.

in one direction. They place great value on time frames and seeing results. The D may challenge the status quo and think in a very innovative way. What motivates the D Style? The D is highly motivated by new challenges, setting and achieving goals and seeing tangible results. They appreciate receiving verbal recognition from others as well as rewards. They enjoy power and authority to take risks and make decisions. Freedom from routine and mundane tasks is important. What should one remember to do when working with D Style? When working with a D, be direct, to the point and brief. Focus on tangible points and talk about “what” instead of “how”. Make suggestions for how to achieve the goal instead of talking about why it won’t work. Try to think like a D, be confident and focus on problem solving. The Bright Side of the Dominant style On the positive side, highly Dominant individuals are independently-minded, motivated to succeed and generally very effective at getting the job done. D’s have the ability to see the big-picture. They have a strong action-bias, which makes them well-suited to lead in a crisis. They make great leaders… People with a D style are their most content and productive when given a leader- ship role, which makes sense consid- ering their major strengths are making quick decisions, delegating tasks, creating action plans and seeing the big picture. They are tough-minded, driven, demanding and not afraid of confronta- tion. Best of all, Executives and Managers with a type D personality are unflinching in the face of conflict and are not afraid of dealing with difficult issues head-on.

What does the D Style contribute to a team?

They think about big picture goals and tangible results. They are bottom-line organisers that can lead an entire group People you may know that are a Dominant (D) Behavioural Style

Jerry Seinfeld

George W Bush

Tiger Woods

Lynda Walsh Operations Manager (NSW)

Darren Marshall

Hillary Clinton

Robert De Niro

5 Kennards Kourier July 2014

FEATURES

A Night to Celebrate Achievements

stories and ideas and experiences over a beer or two. Not only is it a great social night but I enjoy watching my Teammates being rewarded and receiving recognition for their high achievements over the past 12 months. I feel it serves to motivate us all to strive/aim and achieve. It’s a buzz watching as each award is being announced. Personally I look forward to catching up with the many trainees that I have had the pleasure of launching their careers from my HUB. I have been following their progress with keen interest and its personally rewarding to see how they have grown in this time. The night goes so quickly. As I keenly scan the room to see if I have missed anyone. Oh well there’s always next year.” “At my very first Achievement Dinner I was both nervous and excited at the same time. I had heard so much about what the night was going to be like. I had only been with the company a short while and had only met a handful of Team Members. Once there I felt like I was at a family gathering. Everyone was so friendly, welcoming and accommodating. The night was great, seeing and being able to celebrate my Team Members achievements was fantastic. As the years went by the nerves went also. As the company has grown there have also been a number of new Team Members to meet and it’s been great to be able to put faces to the names. The enjoyment of the night is all about getting together with everyone to celebrate the achievements and milestones of the centres and individuals. The night is always a success. It is always well organised, enjoyable and has everyone in the company talking for weeks after. Thank you to everyone who makes the night a success.” Mike Howard

W ith our 2014 Annual Achievement Dinner just around the corner, we look forward to celebrating the great work the Kennards Team have accomplished over the last year. Its also a time for the Team to come together and have some fun, relax and catch up with other Teammates. Some of our longer standing Team Members that have attended a number of Achievement Dinners have looked back on past years and have shared their thoughts below: “Bundanoon, many, many years ago. I went to my first Awards Night which was combined with a Training Conference we had last century. The room was long and narrow with a single long table and we all fitted down both sides. Yes we were one big family from NSW and QLD There were 15 centres as well as those from THQ; Georgie, Anne, HK and Sam. I knew all bar two and they happened to sit next to me. That was the great thing about the night, meeting with and

enjoying new and old friends.

It was a good night, no, a great night which I’ll always remember.

Many, many Awards Nights later (yes I’ve been to them all) I still look forward to going. I’ve formed an acquaintance with lots of people and try as much as possible on the night to meet as many new Kennards people as I can. There isn’t one long table now but lots and lots of tables and dozens, no its seems like hundreds of Kennards people from 84 centres Australasia wide. And not just four people from THQ, but dozens now including HK and Sam. Thanks to all concerned over the years for making the night always so enjoyable.” “I look forward to the Achievement Dinner as our night of nights approaches in August. I have only missed one Awards Night in the last 17 years. It’s turned into quite a crowd now. It’s a great night to catch up in person with my friends from other centres both here, interstate and overseas. Swap Phil Howe

Maria Katselas

Kennards Kourier July 2014

6

FEATURES

The Benefits of Insurance

Customer Feedback

“Thank you for the service I’ve received from Kennards in Palmerston North over the last five or so years. From the time I started at Kennards in 2010 (from memory), Sue Solly was very accommo- dating during that very difficult time in my life. I’ve since changed job and have moved from Massey to Victoria Univer- sity in Wellington. I also understand that Sue has moved to the Kennards store in Wellington. I’ve yet to catch up with her but hope to some day. Although I’ve found a storage unit closer to my flat in Tawa, I know there is a Kennards in Porirua, which isn’t far. Thank you again.” “Recently I signed up with Kennards Self Storage, I was overwhelmed by the customer service that I received. From the initial visit seeing the storage units to the sign up in the following days, which I managed to be late for. The staff at the centre were professional and polite, special mention to Amelia, who stayed back late to help me sort out the contract well past her knock off time. I felt that Amelia went beyond what her work should have been to look after me. I would definitely recommend Kennards Self Storage in the future. Keep up the good work!” “Steve/Ben thanks so much for your terrific customer service. Money went back to my account so soon. One good thing about the move was having confidence my belongings were in a good place. Cheers.” expectations. Really helpful and friendly, and really good policy as well with what you don’t use, you get your money back. Keep the awesome work going guys.” “This is the 3rd or 4th time I’ve used your storage facility and each time the service has been exemplary, hence the reason I keep going back and recommend your establishment whenever I get the opportunity.” “I used the Blaxland Rd centre at Campbelltown recently and the customer service was beyond

A recent fire in April caused by arson at a Wellington storage facility again highlights the benefits of Insurance with storage customers. While fires are uncommon, they are a realistic risk to our business and while we can have all the best fire preventative systems in place, an incident like this arson attack could happen at any centre any time if someone is determined. The learning from this incident is to ensure good communication and education at the initial time of storing on the features and benefits of insurance. This can avoid the mass misunder- standing and complaints that arose as the media covered stories of people losing their valuables being left with nothing. When a new customer signs up, often Insurance cover is not emphasised enough and objections are not tackled. If insurance cover is not taken, then the customer will miss the benefits of coverage for fire, lightening, explosion, earthquake, storm and water damage/ leakage as well as malicious damage and theft through forced entry. Of course when one of these unfortunate events occurs, it focuses the mind immediately but by then it is too late. So as you read this, take the opportunity to think, do you really know the features and benefits of our insurance cover – K Doc 10587 covers this. With this knowledge comes the confidence.

I have asked a number of sites who achieve 40%+ new customer insurance take up, why are you so successful? A common answer was, when they come to check the Storage Agreement and sign off, they get to the Insurance section and just ask – “What value would you like to insure your contents for?” If needed educate them first then deal with objections. Knowledge of what is covered breeds confidence in approaching Insurance Cover. The coverage protects both the customer and the company from events out of our control. This is also a timely reminder to ensure that if a customer does not wish to take advantage of insurance to ensure you get there signature in the decline section of the Agreement. This is gold class protection in the unfortunate event that something happens like this fire, as many people conveniently think we will cover them. The signature in the decline sections confirms we have performed our duty of care to ensure the customer is educated and informed. In this recent fire, the storage operator did not do this and most of their customer complaints are the customer thinking

the storage operators building insurance would cover them.

We are currently trialling our new insurance coverage and rates, it will be exciting to see how this goes. Andrew Kirkham NZ Operations Manager

7 Kennards Kourier July 2014

FEATURES Kia Ora New Zealand I recently had the opportunity to travel to New Zealand and visit our centres and also see a few of our competitors’ centres. It’s great for me to see our centres as it highlights the activities behind the numbers we see in Finance. Below is a summary of the trip and some of my key learnings. From Palmerston North we headed to Napier, another 2 hour drive. Napier is a coastal resort town which was very scenic and touristy. Napier has Onekawa and Hastings within 20 minutes drive so a good base to see these 3 centres. Napier also delivered a meal which I always see as one of New Zealands finest – lamb shanks!

Darren Marshall and I flew into Wellington on Sunday. Monday

Next morning we collected Andrew at the Airport and he joined the trip once again. Then it was on to Hastings where Alan showed us around. The centre was larger than expected and was in excellent condition. Hastings has the highest UV rating in the world, according to Alan, this explained the faded sign. We then met Jayne at Napier who showed us around the centre and also explained the key issues, follow ups etc. Jayne is relatively new as a Manager and her enthusiasm and energy was great to see. We also met Joshua who manages Onekawa for half of the day and the balance is managed remotely from Napier. What surprised me with Onekawa was despite its low visibility, it still attracts customers. This is a clear indication that our web presence and customer follow up is crucial. The ‘Three Musketeers’ then headed off to Lake Tapou which is half way across the island. We arrived as night was setting in. The area is very touristy with hotels, bars and cafes. That night we shared all our learnings over the last few days and re-assessed our challenges ahead. The next morning we headed off early and passed Rotorua and saw a few of the beautiful bubbling springs. We then arrived in Tauranga where Duncan and Bev were waiting to welcome us and show us around their spotless centre. The centre is doing very well and has hit 78% occupancy.

morning we headed out with the NZ Operations Manager Andrew Kirkham, which should have been simple, but things are never that simple when Andrew is driving. We did do a lovely scenic trip on Motorways all around Wellington while trying to see our centre from the Motorway. Finally we got it right and drove past our magnifi- cent orange centre all freshly painted. One can see it from miles away! The Wellington centre is a large centre with significant opportunities as well as space for additional storage. Sue and Larry showed us around the centre. We have significantly changed the mix of units and brought on the Wine Storage. I was amazed at how much work there is to convert a purchased centre, especially one with the complexities and size of the Wellington centre. On Tuesday morning we headed to Wanganui, about a 3 hour drive. Karina showed us around. The centre was in excellent condition and very clean. Being a small town, activity is lower and one needs to monitor prices closely and be aware of what competi- tors are doing. Dynamic pricing needs to be continuously actioned. around. Hayley was enthusiastic and energetic which is great to see, with pages of customer follow ups to be actioned. Once again, a very clean and well organised centre. We spent some time going through merchandise and merchandise margins. From there it was back to Palmerston North where Hayley showed us

Hamilton and visited a few competitors along the way.

Three long days of driving and covering over 1,000km saw us reach Auckland in the early evening. Darren and I were saddened to hear that Andrew did not want to enjoy our wonderful company and have another dinner with us! On Friday we first headed to Mt Eden where we were shown around by Shane and Craig. Mt Eden is a well organised and busy centre which has shown excellent growth. Good to see the basement where we are planning to convert parking into storage. newest recruit Steffi. The centre has hit 80% and continues to grow well. With both Auckland centres doing well this drives the profitability for the entire NZ Operation. However, it was clearly evident that what happens in the big city does not always reflect what is happening in Regional Areas. I thoroughly enjoyed my visit to NZ and was very impressed with the ownership Centre Managers and Teams showed. I was also impressed with the cleanliness of the centres. Well done Team NZ and thanks for your wonderful hospitality. Anthony Rous Chief Financial Officer Then onto Three Kings where we met Leon and Bev (NZ TSM) who were training our

We then headed up to Auckland via

Kennards Kourier July 2014

8

FEATURES

Our Values, do we know them?

Quality, consistency and commit- ment gets rewarded by longevity from our customers. In 2009 National Accounts had 14 customers, 12 of those customers are still waiving the Kennards flag today. With end of Financial Year upon us it’s review time and the last 12 months have been an exciting ride. Again this year I am pleased to announce we have ended the year with an exciting 21% growth for the programme. Continuing to build on the roots of our long standing customers we crossed the line with 13,600 rented square meters. This year PMP joined Kennards closing their Warehouses and moving into 22 units across NSW. We watched Silcar open new space around Australia and our friends at Club Assist became our second largest customer. We welcomed Aspen, Techtronics, PMP, Zoetis, The Heat Group and Pernod Ricard making new relationships and strengthening existing ones. Feedback from our customers has been exceptional. We kept our finger on the pulse when customers’ needs started to change, asking for feedback and keeping an open mind. Through our exceptional service offer we were able to accommodate the diverse needs of our customers. When they needed to down size we were there. It’s how we handle these types of situations that give us credibility in our offer. Some of our goals for the next 12 months include the development of a new Master Agreement which will see the individual Agreements phased out along with a simpli- fied discount structure that will create better transparency for our Customers and Teams. Fiona Harding Business Development Manager It’s all in the Offering

164 Respondents indicated to a great extent (89%), 19 Respondents indicated to a moderate extent (10%), 2 Respondents indicated to a slight extent (1%). Question 2 Does the Organisation live the values? 137 Respondent indicated to a great extent (74%), 30 Respondents indicated to a moderate extent (16%), 18 Respondents indicated to a slight extent (10%). Although we have nothing yet to compare the results to, they were very encouraging. Living the values is always going to be our challenge and we will remain committed to fostering strong values in KSS. “ Values are vital in guiding how we behave day-to-day in our business. ” This result gives us a starting point from which to benchmark ourselves and challenge ourselves to improve and grow. Living and breathing our values has a positive impact on our work environment and has a flow-on effect to our customers. Living our values will increase work satisfac- tion and enjoyment, which in turn will enhance the customer‘s experience. Our Freedom Values were born out of Momentun12 along with our Four Pillared strategy. Our Champions responsible for implementing each strategy will cover the progress in future additions of the Kourier.

B ack in 2012 we established our FREEDOM values. Values are vital in guiding how we behave day-to-day in our business. The right values importantly provide a competi- tive advantage over our competitors. An opportunity presented itself to measure how successful we have been in spreading “FREEDOM” throughout KSS. So for the first time this year two supple- mentary questions were added to the OCI Cultural Survey to address this area.

The questions were asked to:

(1) Understand the level of awareness and knowledge of our values amongst Team Members and;

(2) Understand how well we were living these values.

The results are as follows:

Question 1 Do you know and understand the values of the Organisation?

Darren Marshall General Manager

9 Kennards Kourier July 2014

FEATURES

Big Data/Which Data?

Understanding Google Analytics for the KSS Team has been no different. There are insights and reports available to baffle even the most devoted “numbers man”. Too much data, too many reports often leaves us lost not understanding the insights, or worse, ending up with a “To Do” list so long you’ll never get it done. So which data tells us most about what is going on? In the case of Web it’s actually quite simple: • Higher rankings • More impressions (visible listings) • More clicks • More sales (Online Quotes and Reservations) Any improvements to the website or our marketing campaign are aimed at building these results. It’s these items we’ve been tracking and measuring and we now have a one page report that shows us exactly that. Darryl Hodgson NSW Operations Manager

vast amount of energy was invested in teaching students how to gather data and stay out of the dark. In less constructive work environ- ments those that had the data believed it gave them power. In those days there was no such thing as too much data and information overload was hard to come by. Thankfully those days are gone. A short time later the world changed and these days, in the information age we’re more

I n the previous edition the analogy between merchandise and cash and what this means to our business was briefly discussed, as was the distinction between Inventory Controls and Inventory Management. In this edition, the focus is on Inventory Controls. Inventory Control is managing the inventory that is already in our centre. This involves: • Knowing what products are “out there” and how much you have of each item. • Knowing exactly where each piece of each product is located in your centre. • Ensuring that all inventory remains in saleable or usable condition. • Storing products to minimise the cost of filling customer orders. Why is inventory control the starting point? A funny thing happened to me at the end of the 80’s and it wasn’t just the end of the mullet! Studying business at that time, the goal in decision making was always to gather information, the right information to be able to make an informed decision. A

often in an ocean of data! If we don’t have it at hand; some statistic or trend will only be a Google search away. More recently those in the industry have been talking about “Big Data” and the plethora of insights available for businesses like us.

No Margin For Error... (Part 2)

When we stock an item we are making a commitment—a commitment that the product will be available in reasonable quantities for immediate sale or delivery to customers. Unless we know exactly what inventory is in our centre and that it’s in usable condition, it is difficult to accurately determine when to reorder. Efficient stock control allows us to have the right amount of stock in the right place at the right time. It ensures that capital is not tied up unnecessarily and protects the business if problems arise with the supply chain. Some of the salient features of an effective inventory control system are: 1. Documentation and accounting controls relating to receipting (receiving) stock and pre and post sales activities. There are many administrative tasks associated with stock control. Typical paperwork to be processed includes Delivery Notes and Invoices for incoming goods, Purchase Orders, Receipts and Credit Notes, Merchandise Transfer Documentation and Sales Invoices.

In our business, the main sources of stock receipts are:

1. Amcor (based on orders placed)

2. From another centre as ‘Stock Transfers’ 3. Buy back and or returns from customers (Credit Note)

Goods receipt can be planned (1 & 2 above) or unplanned (3). Best Practice requires all of these to be treated alike. Compare the physical stock received to the quantity in the document (supplier Delivery Note or Stock Transfer Note) or raise a Credit Note for the quantity returned. This is the most critical step that determines the outcome of the inventory controls as a ‘whole’. The centre Team needs to ensure that there is no discrepancy, damaged goods etc. at each stage. It is also important to acknowledge receipt by signing the documents, highlighting variances (if any) and retaining a file copy. This document becomes the basis for accounting purposes.

Con’t page 11...

10

Kennards Kourier July 2014

FEATURES

item in stock. Counts are commonly employed with all types of inventory and the objective of the inventory count is to ensure that all inventory records are accurate. Should the physical count and the records not agree, the differences need to be examined and variances reconciled in accordance with company best practice. I will discuss this topic in more detail in the next edition. • Balance the stock as to value, size and price line in proportion to demand or sales trends. • Plan the winners as well as move slow sellers. • Secure the best rate of stock turnover for each item. • Maintain a business reputation for always having new, fresh merchandise in desired mixes. Let us now examine why we need to count our inventory and some key decisions to make before conducting a stock count. To conclude, Inventory control helps: • Reduce expenses and markdowns.

sales on a regular basis over time that eventually results in profitability. The stock turnover rate is the rate at which the average inventory is replaced or turned over, throughout a standard operating period, typically one year.

The next step is ‘receipting’/entering inventory in Storman with quantities consistent with the document. A similar streamlined documentation and accounting of sales, display stock, customer give-aways, theft etc. is equally important.

“ Unless we know exactly what inventory is in our centre and that it’s in usable condition, it is difficult to accurately determine when to reorder . ”

2. Stock review is a process for frequent review of damaged/obsolete stock (can be in the context of demand) and is necessary as items sitting on the shelf that are obsolete are simply dead capital. Keeping inventory up to date and devoid of obsolete merchandise is another critical aspect of good inventory control. 3. Stock turnover is really the way businesses make money. It is not just the profit per unit of sale that makes money for the business, but

Deciding how much stock to keep and the stock turnover depends on a lot of factors and can vary from centre to centre like location, demographics, customer base etc. and to a certain degree, the type of stock involved. 4. Physical Inventory counts it is an understatement to say that the efficiency and effectiveness of any inventory control system hinges on a systematic and independent physical stock take system. An inventory count is a process that involves a physical count of each

To be continued….

Let us look at some comments and what they mean in the context of Inventory Controls

Sathish Gopinath Financial Controller

11 Kennards Kourier July 2014

FEATURES

Libertarian Legacy Honoured with Lifetime Achievement Award

Customer Feedback “Very good, I first spoke to Belinda at Campbelltown to enquire about a storage unit which we needed while in the process of selling our home. Belinda was really helpful and very pleasant to speak to. A few days later I went over to have a look at the size of the unit and met Belinda face to face. She was very nice to both my husband and myself and has given us several ideas to help make the most out of our storage space. Each time we have spoken with Belinda she has always been very friendly and I thank her for her help.” the Manager of the storage facility in Preston, VIC. At the moment I am in between houses and moving out was a stressful experience. It was great to see somebody so friendly and helpful as Sandra! It was actually because of her that I have decided to rent the space in the facility for longer than previously anticipated. She is very professional but simultaneously very friendly. She is a great asset to Kennards and I congratu- late you on having her in the company.” “Clean, conveniently located space at Flemington. Easily accessed 24 hours. Staff were friendly and helpful. Availa- bility of trolleys was great. The clean, fresh and free tea and coffee facilities and the chocolate vending machine were a life saver. All together, made “going to storage” a very pleasant experience.” “Everything was great! Storing with Kennards was fantastic, staff were always helpful and friendly and the Wollongong storage facility was always clean and easy to access. I Would recommend Kennards to anyone who needs storage. Special mention to Matthew, he is a great person to deal with, always happy to assist and a lovely young man.” “Clean, tidy centre at Rydalmere. My father has had no problems with using his storage space and has commended the crew on excellent customer service. At a stressful time in his life Kennards have made this part a breeze!” “With this letter I would like to comple- ment one of your staff members Sandra,

Sam Kennard accepting his Father’s Lifetime Achievement Award at the ALS Friedman Conference

O n Saturday May 3rd, Neville Kennard was posthumously awarded the Lifetime Achievement Award from the Australian Libertarian Society. It was another reminder for me about how deep and wide his pro-freedom roots and activities spread. The Award again remembers long held and unwavering commitment to personal freedom and to resist the states relent- less incursion into people’s lives. On accepting the Award, I reminded the audience of his instrumental role in the formation of The Workers Party in January, 1975.

In 1976 he discovered the early initiative of Greg Lindsay establishing a think-tank later to become known as The Centre for Independent Studies (CIS). Nev provided the first significant third- party donation that enabled Greg Lindsay to properly set the CIS up. In addition, he served as the CIS inaugural Chairman for the first eight years. The Kennards Family is thankful to the Australian Libertarian Society for remembering Nev’s legacy for freedom. Sam Kennard Managing Director

12

Kennards Kourier July 2014

FEATURES

Outgrown Your Home? 10 metre banner goes up on KSS

Waterloos north facing side wall, with the help

of a couple of Abseilers and APMS Services.

Last in the suite for Blaine and Amber “Lets Travel to Machu Pichu”, Blaine and Amber go on holiday! This is our 13th and final banner in

our Episodes of The young and The Cluttered, for now.....

13 Kennards Kourier July 2014

TRAINING

2014 Wine Storage Specialist Training Programme

W e are embarking on an enhanced and more intimate relationship with our current and future wine storage customers. We believe training our Teams to be "Wine Storage Specialists" is an important element of this process! With 16 locations our wine storage niche represents a potential annual income of $2.9 million. The two day session began with a full day wine appreciation course with The Wine Society and concluded with a day in the THQ Training Room focusing on the wine industry, sales, features and benefits, competitor intelligence, cellar management and much more. We want our Teams to shine above our competition, by being well-versed in wine cellaring, motivated to develop their wine knowledge further and a desire to grow their wine storage occupancy. Their knowledge on wine and wine cellaring is a crucial component of our customers experience.

“Having completed the Wine Training course, I was able to rapidly increase my knowledge about wine. It allowed me to understand the different varieties of wine, ideal temperatures for storing, importance of follow up and set me up for sales success. Wine Training has allowed me to improve every customers experience and interaction. I’ve also developed avenues to achieve positive growth in my wine cellar.” “This Training is definitely helping with our sales here at Thebarton with an increase of approximately eight units. The first day was a definite eye opener into how we can converse with customers and the second day sealed our sales techniques to offer the best solution to all of our wine customer’s needs. Thanks for the opportunity, I definitely see this as a great training tool for all centres moving forward. Eric Conliffe - Artarmon, Pacific Hwy

“This topic of Educating Wine Lovers is so true. Appreciating the many different characteristics and complexities of wine I never knew before. Loving the learning.”

Steve Jansen - Chatswood

Lynda Walsh Wine Cellaring Business Development Manager

Adam McCoy - Thebarton

14

Kennards Kourier July 2014

TRAINING

Training in Abundance!

W hat a busy few months Team Members across Australia and New Zealand where we took the opportunity to discuss enquiry follow up online from customers, the introduction of Online Mystery Shopping and the changes to the Mystery Shopper Incentive. It was also great timing to look at the Management Development and Action Plan process (MDAP) to give all Team Members a clear understanding, enabling them to complete the process comfortably. The most popular session was “The Business of Merchandise”. A bonus for the Sydney sessions was the attend- ance of Sathish to explain the finance perspective. We wound up the Skillbuilder sessions looking at Average Rent Increases and giving all Team Members a clear understanding of the formula and the factors that effect it. I also had the pleasure of conducting Effective Centre Management Skills Training with the Victorian and New Zealand Team Members. Thanks to Azam, Eli and Trudy from Vic, Owen from S.A. and Hayley and Jayne from NZ. Their commitment to the sessions made my job easy. 12 Team Members attended NET Training at THQ and another three had NET Training in Brisbane with Wayne McLaren and David Bauze offering great support at our Chermside Centre. The run continued with our first NET Training conducted in New Zealand at Onekawa, an Effective Centre Manage- ment Skills session conducted in Sydney and another NET Training session in both Sydney and Melbourne. Being part of the Kennards Team provides me with such a privilege to be able to engage all Team Members at some time in their careers. Their develop- ment could not be achieved without the support of all Kennards Team Members. Bill McClean Training and Development Manager we have had in training, Firstly we have delivered Skillbuider Sessions to our

NET Training - Back row L to R: Daniella Hopkins (TSM S.A.), Brianna Burns (TSM NSW), Colin Haden (Fyshwick), Animisha Sanmala (Homebush), Ray Adams (Miranda), Robert Heffernan (Wetherill Park), Terry Curtis (TSM Newcastle), Front row L to R: Evan Thomas (Frenchs Forest), Stella Romeo (Camperdown), Rebeka Theodis (Caringbah), Cindy Flitter (Panorama).

QLD NET Training - L to R: Katrina (Kat) Weston (North Lakes), Tilley Leach (Chermside), Chris Rose (Milton).

NET Training – L to R: Ray Adams (Miranda), Brianna Burns (TSM NSW), Evan Thomas (Frenchs Forest).

15 Kennards Kourier July 2014

Property Spotlight On Hornsby

T he Kennards Hornsby centre was previously a furniture business called Keith Lord. Located on the corner of Pacific Highway and Pretoria Avenue, directly opposite Barker College. We are within walking distance to Hornsby Railway Station and Westfield and two minutes from the M1 motorway. We are in the Lower North Shore of Sydney which is situated 26km from the Sydney CBD. The property was developed into storage in 1995. The centre has one building which consists of two floors including driveway, ground floor and upper level units; a total of 523 units. All our units are individually alarmed with 24 hour access. An office upgrade was completed just before Christmas 2013 which is much more user friendly and allows us to display all our merchandise and still have room to swing a cat! We offer our customers a superior product, by way of more value for money and quality service. Superior product knowledge with the backing of a trusted

name, puts us ahead of the competition.

quality service. Although the cheaper rates are attractive, superior product, Brand and knowledge can overcome this current challenge. The Team at Hornsby comprise of Steve Dillon who has been Centre Manager for seven months and with KSS for six years, and Scott Degenhardt who has been the Assistant Manager for nine months and with KSS for six years.

About 20% of our customers are businesses in the local area ranging from Golf apparel suppliers, National Account Customers, small electronic gear, air-con suppliers and timber floor specialists. Hornsby has experienced a slow quarter, although merchandise sales have been solid. Our current occupancy is 81.1 % with a current yield of 41.62.

Team Hornsby

The biggest challenge we face at present is the opening of a new compet- itor in Hornsby, which is offering units signifi- cantly cheaper than us. The biggest weapon we have to combat this is our superior product knowledge and

16 Kennards Kourier July 2014

PROPERTY

Mittagong to Enjoy a Summer Opening

Mittagong - Christmas opening CIC Builders won the tender to build Stage 1. Site clearing is underway and we expect to be open before Christmas 2014. Warrawong - Stage 1 out to Tender DA is finally approved after some last minute intervention from Council’s Engineer. Stage 1 is now out to tender and we will hopefully have the new centre operating by April 2015. Mt Eden - Ready to start basement fit out Kiwimark has won the tender to complete the fit out of the basement, after some work with the Fire Engineer we are ready to start work onsite. Pymble - Construction underway After three months of hard work the building is completely stripped back to its bare concrete. Total Construction have won the construction tender and we are looking at a November 2014 opening. Maroochydore and Kunda Park - Expansion ideas We have started on our concept designs for expanding both these properties. They will require Council approval and hopefully we can start construction before the year is out. Yeerongpilly - On track for August completion Work is progressing at a great rate with ground floor slab complete, main steel structure complete and roof

approximately 75% complete. Completion is on track for a late August handover. Macquarie Park - THQ fit out underway The self-storage is now open for business. The fit out for THQ is underway and together with the landscaping we are

looking to move in during August. Wellington - Branding complete

The external branding makeover is now complete and initial reconfiguring of some units is complete. With the balance of the rear building we need to add some structural bracing to comply with the earthquake code, then we can start looking

at fitting out the balance of the property. Prospect - New expansion project soon

We are putting the finishing touches on the unit layout and will look at starting a new expansion project in the coming months. Fyshwick - Concept designs underway With the recent purchase of the neighbouring property we have commenced concept designs to join the two properties. For regular updates please follow me on Yammer and Twitter. Michael Macheledt Development & Construction Manager

17 Kennards Kourier July 2014