It continues to get visibility, most recently due to the media announcements of Peter Thiel’s contribution to the creation of a $40 million New Zealand-based venture capital fund; a kick start for NZ tech companies that is hoped will contribute to improving the country’s economic performance.

The rhetoric (positive) from Gov’t / politicians continues, with the need for NZ to build a “smart” economy to provide employment and opportunity for our kids.

If we look at global trends, we can say that the digital revolution is fast tracking innovation, significantly increasing productivity and irreversibly changing employment and the economy.

The predicted growth curves that will be driven through the delivery of disruptive technologies, should mean that the tech industry will become one of the key sectors in driving wealth for New Zealand

We are however repeatedly seeing NZ companies being sold off shore. Many Kiwi technology companies, with really clever and innovative offerings, make it through the start-up phase but fall short of successfully delivering a significant return on investment; often a result of the founders running out of energy, capital and in many cases capability.

Most business theory recognises that as an organisation grows, different styles of leadership are required to move it to the next stage. The same is true in respect of investment. Start-up and early stage investors differ in their risk appetite and timeframes, to later stage investors. We are recognising a trend that has investor preference moving toward more established entities, with a track record of revenue and earnings growth. For those early stage investors that invested two to three years ago, their current preference seems to be for follow on capital in companies that they already have an interest in. It follows that the level of capital previously available for start-up businesses may well be migrating towards less risky investment profiles.

The technology industry also has an innate need to move fast (I am not sure how many times we hear of the “small window of opportunity”) yet many of NZ’s most successful technology companies have been building their success over decades not months. There are always going to be the companies that exploit the opportunities of technology change as we are now seeing with social media, but this should not necessarily drive the investment decision making criteria for the industry.

As the premier specialist high-tech growth advisors in New Zealand, Howard & Company has been trying to determine how we better contribute to delivering on NZ Inc. All of our colleagues in the industry share the same desire to see Kiwi tech companies succeed, and this enthusiasm is backed up with the likes of Thiel who sees that New Zealand could be an incubator for leading technology…

As a group, however, we are failing at joining the dots. It is our view that all need to be involved and take responsibility for their part – despite New Zealander ‘s track record of being poor collaborators! Investment alone will not grow NZ’s tech industry.

Howard & Company’s focus going forward is to collaborate with our industry peers wherever possible and continue to provide capability, courage and capital – with a view of building significant global technology companies domiciled here in New Zealand. The tech industry is primed for significant growth in the coming years, and we are passionate about the role Kiwi companies can play in this growth.

For more on the current NZ investment environment, join us for Howard & Company’s Breakfast Talk on 4 May 2012.

click here for details: http://www.howardandcompany.co.nz/breakfast-talk-2/

Ant Howard, Howard & Company.

The Lights in the Tunnel

Automation, Accelerating Technology and the Economy of the Future

click here to read -The Lights in the Tunnel

In our engagements with companies we often see that the challenge in preparing for accelerated growth is a lack of understanding in the current capability of the organisation, and an objective view of the business’ strengths and weaknesses.

The BAT is a tool for leadership teams to understand and objectively quantify the current status and capability of their organisation, and to assess its potential for growth. The tool assesses performance in:

• Strategy & vision
• Go to market
• Sustainability & scale
• Competitive advantage
• Customer engagement
• People & leadership
• Financial performance

The BAT is designed to gather quantifiable and relevant information from multiple perpectives, both inside and around the business, providing a 360 degree view of performace. It indentifies how a business is currently positioned, its capabilities and any aspects of the business that need further attention. The BAT gives a holistic view of a business and a framework from which to initiate discussion, debate and strategy planning. It then provides an ongoing framework for the prioritisation measurements of progress.

If you would like to complete our Business Assessment Tool free trial for your organisation please contact hannah@howardandcompany.co.nz

Its aim is to put New Zealand companies on a path of sustained international growth by developing and enhancing the ambition, mindset and capability of New Zealand’s foremost business leaders and senior executives.

The programme is delivered via a strong partnership that has been formed by four organisations whom are all focused on the growth of our business leaders and New Zealand:

• The University of Auckland Business School
• New Zealand Trade & Enterprise
• The ICEHOUSE
• The internationally acclaimed Thunderbird School of Global Management (ranked #1 for global business schools by the Wall Street Journal)

Howard & Company was asked by the programme partnership to assist in the overall go to market plan and execution; identifying and recruiting senior executives from New Zealand’s leading exporter organisations to join the programme.

With a successful outcome delivered, the programme commenced on August 24, 2011 and has a high calibre of attendee, which will build a strong peer group through the programme and a forum to discuss global business challenges at an executive level through the ongoing alumni.

For further information on the programme visit www.globalexecutive.co.nz or email alex@howardandcompany.co.nz