AN OPEN LETTER TO COMMERCE CHAMBER MEMBERS

Press, Volume XCVIII, Issue 28866, 10 April 1959, Page 13

AN OPEN LETTER TO COMMERCE CHAMBER MEMBERS

This is the first submission to Commerce Chamber members that they advocate that a fullscale. investigation of Commerce Chambers be made. The courtesy of addressing that request to Presidents only, in the past does not appear to have been paid to gentlemen who do not adequately appreciate the great importance of improvements which can be made for N.Z. Commerce Chambers. Persons who are qualified by experience, interest and scholarship to investigate and report can be employed to do that. The total cost even if in itself substantial could still be more or less as petty cash per subscribing member. It could possibly occur that a few members might be prepared to underwrite the total cost. Transitory Presidents and other short-term office holders, therefore, do not have to do more than take the important responsibility of advocating a full-scale investigation with the consequent need for a first draft of an order of reference to be made. Care would have to be exercised in the selection of the person or persons to investigate and report. There are a number of world renowned consultants in relation to organisation and methods to whom preliminary inquiries could be directed. There are a few individuals of whose Commerce Chamber careers New Zealand Commerce Chamber men are aware, to whom preliminary inquiries could be sent.

"MEN OF MANAGEMENT" There are also among New Zealand Commerce Chamber members some “Men of Management” experienced in dealing with men in “the field” and in large-scale enterprise who understand self renewing systems, and how controls can be exercised while resiliency, initiative, and drive can also be in the temper and character of an organisation. There must, of course, be some . risk in any major reorganisation but it is not enough to just observe that fact without taking stock of where we are with what we have got. Having regard to what is essentially Commerce Chamber work, therefore it is submitted that risk of loss from reorganising is so incidental as not to count. By contrast, the certainty of big profit is there to be realised by reorganising in ways which are already well proven by working examples in the United Kingdom, especially London, and in other parts of the world. Look at the New Zealand Commerce Chamber situation after 100 years in relation to Commerce Chamber career men and their training. Look at the New Zealand Commerce Chambers’ revenue, reputation and influence, rate of sequential development, etc. Measure the present structure, etc., in relation to Transitory Presidents, many well informed, some concurrently occupying other honorary appointments, all part-time in addition to their regular occupations. Undue dependence by * New Zealand Commerce Chambers on the Presidential office as that goes round, and as Chambers may go up and down accordingly. Relate the average time of service of all councillors to the working life time of one generation at least. Then contemplate the absence of a system of management which is authoritative, responsible, continuing and held in appropriate ways to what are essentially Commerce Chamber responsibilities. In 1948, New Zealand Commerce Chambers approved in principle of the ManagerialDirectorate system, but the Present system is as exposed to dilution of vision and conscience alike as to what applies between and within some Government Departments. That is because, to many, New Zealand Commerce Chambers service is more important as a stepping stone than are Commerce ChanJbers themselves as such. When therefore New Zealand Commerce Chamber men fall

back on what is called “the 10s 6d or guinea complex” to explain the poor situation of New Zealand Commerce Chambers, after 100 years, they should remind themselves of the token membership of some and of the token subscription of many commercial members.

NEED FOR CRITICAL STUDY In passing I also comment that Commerce Chamber members, and especially members of Council do need to critically study the respective merits of large councils and small councils in terms of Chamber member councillors, i.e., exclusive of councillors who take their seats on recommendation by “outside” bodies. Those large Councils of Chamber members of London and of Canadian and U.S.A. Chambers which the writer studied, result from deliberate planning. That is apart' from the size of cities and the total number of members. Allowing for exceptions such as Hong Kong, the highly successful Chambers called upon over a period of years are organised with what could appear to many New Zealanders as very large Councils and with small directorates. Those large Councils which in number of Councillors could be more than the total membership of some New Zealand Chambers are organised into Committees. These large Councils bring an optimum number of members into active Chamber work and the number of Committees offset the need for particular groups to set themselves up outside the Commerce Chambers. Life membership of Councils is deliberately part of the planning in London for example. The Councils elect directors from Council “Life” and currently elected or drafted members. each for a term with some retiring each year in rotation. Investigation by inquiry at Commerce Chamber offices in Canada, U.S.A., and by additional observation of London and Australian Chambers over a period of years will show that practically all the “hacks” have small Councils and that those which are really successful are organised with very large councils, and work to the directorate-management system. It would be as reasonable to hope to be able to build up New Zealand Commerce Chambers to first-class organisations under the conditions which at present apply as it would be reasonable to try and train a draught-horse to win the Melbourne Cup. The principles as the basis of realistic organising include: (1) Discipline in respect to the duties which Commerce Chambers as such can and should attend to; (2) Managerial efficiency that has to be authoritative, responsible and continuing. (3) Provision for “the discipline of the office” as provided for by directorates which in themselves include an adequate element of continuity.

"MAGIC OF ESTABLISHMENT" Some Chamber stalwarts adopt the attitude that “after all, New Zealand Commerce Chambers work very well,” but the truth is that they continue to occupy a position on the “magic of establishment.” For example, merchant, manufacturing or transport businesses can often keep going after the loss of managers and for some time under office men. Neither buildings nor Commerce Chambers collapse at once after they become defective or even unfit for their original purpose. But the position which New Zealand Commerce Chambers occupy is one of the key positions of responsibility as a check and balance and aid for good government. Some day Presidents may arise whose personal position allows them to use their influence with sufficient determination for the present organisation such as it is to be thoroughly overhauled and very substantially improved.

Prior to 1948, two (or three) attempts were made by New Zealand Commerce Chambers, Employers’ Associations, Manufacturers’ Federation, and, if I remember correctly, Farmers’ Federation, and one or two others also took part or exercised watching briefs to create an organisation to make common cause on the side of Free and Responsible Enterprise. One of those attempts got to the drafting of a Constitution. No need to go into reasons why that idea would not or could not work but the efforts did emphasise the practicability of Commerce Chambers building up their organisation, nationally and locally, i.e., in quality and size to attract a very big and influential membership and the support by affiliation of the other bodies.

PAST APPROVAL The New Zealand Commerce Chambers did, however, at a conference held in Dunedin in 1948 approve in principle of proposals which stemmed from that conception and included: (1) A common organised effort to help improve the strength of all Chambers. That was related to ManagerialDirectorate system for Commerce Chamber control. (2) The idea of New Zealand Commerce Chambers sponsoring “a New Zealand “Economic Institute.” That was set out in some deta' 1 on advice obtained before 1948 from Professor Belshaw. (3) A proposal that New Zealand Commerce Chambers prepare to house themselves in a “worthy headquarters.” That was also advocated by Mr McPhail as a delegate from Wanganui Chamber at a Palmerston North conference. If any reader says on reading that list of proposals that they are too many as one does for a national conference, then they should remember: (a) That such proposals in kind and number would not be an impracticable proposition to authoritative and continuing management, which would have to plan its work in relation to efficient use of time. < (b) That a fatal -weakness in New Zealand Commerce Chamber structure results from the absence of authoritative and continuing managers. (c) That irrespective of how valuable proposals can be, that because of the existing organisational weaknesses, very many, if not nearly all of them result in repetitions of characteristic Commerce Chamber shadow sparring. “This is the era of the Faceless Man,” according to a reported statement by Dr. Arthur Schlesinger, History Professor of Harvard. The Professor was talking about what he called “the crisis of identity” and the absence of pungent personalities who express a point of view which unmistakably declares how they identify themselves. New Zealand Commerce Chambers tend far too much to act like individuals who overdo circumspection as t they treat good relations alike to stock in trade so that if occasion arises they may be in a favourable position to negotiate with the devil. What does Commerce Chamber vigilance mean if Commerce Chambers as such fail to damn a wrong which should be damned and do that in the open to declare themselves for their friends and purge themselves of their enemies. There “are tides in the affairs of” institutions and if they are properly organised to the selfchecking. self-renewing managerial directorate system (that is the way to raise the status of Presidents) they can produce wise and dynamic management equipped to take every “tide at its flood.” (signed) S. W. PETERSON. I Copies of this letter will be gladly | sent to members on request. —P.B.A.