Good management in business ‘crucial’

Press, 5 October 1984, Page 2

Good management in business ‘crucial’

Good management in private business has a crucial part to play in modernising the New Zealand economy, according to 'a former National member of Parliament, Mr Derek Quigley. Addressing the Institute of Public Administration in Christchurch yesterday, Mr Quigley said that the private sector had to build on the growing public appreciation of the advantages of a more competitive economy and had to educate the public on the importance of new technology. New Zealand’s present difficulties were in essence the result of political overcommitments, he said. “For decades we have made commitments to full employment, to industrial protection, to welfare, and to other expenditures which our economy is now not capable of meeting,” he said.

“The real problem with the New Zealand economy is ? that it is subject to so many licences, controls, outdated procedures, and vested interests that the implementation of change is invariably opposed by those who enjoy the privilege of that protection.” The fact that the vast number of company head

offices were in Wellington indicated the degree of business dependence on the Government. This, combined with the three-year election cycle, led to a concentration on the short-term and the reluctance of politicians to face up to the adverse political consequences of changes that would have long-term social and economic benefits.

“The risk of this approach is that it will weaken the consensus on the need for continued restraint and to thinking and planning longer-term, which are all necessary ingredients for a successful move towards a more open economy,” said Mr Quigley. Two of the barriers to better economic performance were uninformed public discussion about new technology and a widespread introverted attitude which surfaced in the form of the question, “What is in it for me?”

“If we all spent more of our time thinking about the question, ‘What is in it for the customer?’ or ‘What is in it for New Zealand?’ we would, within a very few years, find we were living in a much more attractive and productive society, and sharing the benefits,” Mr Quigley said.

Technological change would not solve the unemployment problem in the short term, but it was one of the few ways of generating wealth, growth, and jobs. New Zealand’s strength and potential lay in its existing businesses, which were already producing and had an established market. The real challenge was to encourage them to perform better and to adapt to new circumstances when necessary.

“In reality, it is the old, or in some cases the current technology which we have to fear, because unless we replace it with modern techniques many more New Zealanders will be unemployed than is now the case.”

Because improvements would not happen on their own, management had a crucial part to play in modernising the economy. Management, both in the private and public sectors, was probably the most conservative segment of New Zealand society, Mr Quigley said.

Change was possible, if only because - the “old guard” was dying out slowly.