The Omaio Governance and Leadership Development Program is an intensive 4-month course teaching best practice governance and leadership thinking and teachings delivered by seasoned experts to a growing alumni (around sixty) of exisiting Trustees and emerging Trustees and future leaders. Here are two long term planning case studies on governance and leadership being taught to students.
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Omaio governance and leadership development program
1. Omaio Development Strategy
• Opotiki District Council 10-Year Planning
• Wakatu Incorporation 40-Year Development Story
1
Governance and Leadership
Development Program
3. ROLE OF THIS PACK
To assist ODC to draw insight from the discussions that will inform future
prioritisation and action.
To provide a high level summary of outputs from a facilitator perspective.
To provide a framework within which input materials and meeting records can
be located for ease of future reference.
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4. OUTLINE
1. Introductory material – external stakeholders
2. Opportunity and challenge: Summary insights – Dr Rick Boven
3. Session summaries
a) Economic Overview – John Galbraith – Page 17
b) Aquaculture – Peter Vitasovich – Page 18
c) Kiwifruit – Ian Coventry – Page 19
d) Maori economy – Karamea Insley – Page 20
e) Manuka – Karl Gradon – Page 21
f) Social Development – Barbara MacLennan – Page 22
g) Climate change – Mark Townsend – Page 23
h) Water management – Ari Ericson – Page 24
3
6. OPOTIKI HAS NUMEROUS VALUABLE
OPPORTUNITIES FOR ECONOMIC GROWTH
Aquaculture and mussel processing expansion
Construction of harbour development, processing plant and housing
Expansion of gold kiwifruit production on Maori land
Manuka/honey development in the hinterland
Tourism growth, including adventure tourism and recreational fishing
Income increases for existing residents and the incomes from new residents.
Total GDP increase could be a very large increase on baseline GDP if fully
realised
Scale and complexity of change relative to existing institutional capacity is
extremely high
5
Opportunities
Impacts
7. OPOTIKI ENJOYS AN EMERGING COMMON VISION
AND RANGE OF SUPPORTIVE STAKEHOLDERS
Opotiki’s leaders are close to having a shared understanding of the
opportunities and developments, and
• The potential for a common vision for the district’s future
There is goodwill and common interests and the beginnings of a practical
commitment to work together
Central government appears supportive and is working through options to
provide sufficient funding for the harbour development
The BoP Regional Council is also supportive
6
8. BUT GROWTH POTENTIAL CREATES IMPORTANT
AND UNUSUAL CHALLENGES
The amount of growth potential is large relative to the size of the existing town and
the district population which creates important and relatively unusual challenges:
• Ensuring sufficient supply of skilled and work-ready people
• Ensuring work-readiness of sufficient numbers of existing people
• Ensuring the school and school-to-work transition is operating effectively
• Attracting people to live in the district
Further improvements to local infrastructure and services, notably:
• Housing expansion – likely new subdivision(s), town centre improvements
and expansion/infrastructure for Woodlands
• Commercial land and supportive zoning
• Connectivity infrastructure - bridge, road quality, electricity and
communications resilience
• Services, including medical, freight, storage and courier
Expanding the capabilities and capacities of the District Council in advance of rates
income growth
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9. THE SCALE AND COMPLEXITY OF CHANGE IMPOSES
A “BALANCED GROWTH’ DILEMMA
8
Business
growth
Labour
force
Housing
Consenting/
planning
Council
capacity
Multiple inter-related
growth requirements
A constraint in one
area could lead to
impediment in another
Balanced growth causality (example)
10. OPOTIKI HAS SOME ADDITIONAL OBSTACLES TO
OVERCOME TO ACHIEVE THE VISION
Workforce supply arrangements and accommodation which will meet the
seasonality needs of local businesses
Nearby expansion of economic activity at Kawerau, creating competition for
workforce
Striking the right balance between work-force development efforts that are shared
among the district’s important and collaborating employers versus competing for
workers
A town centre where expected sea level rises will create future costs for protection
Improving the liveability brand of the town and environs to attract and retain
people
• Including by telling a compelling and authentic story about the status, the
potential and the improvements planned
9
11. THIS ADDS UP TO AN UNUSUAL SET OF CIRCUMSTANCES
Growth potential with huge economic and social prizes, with material
funding almost lined up
Supportive iwi (imminent settlement) and Council (rating base
challenges)
Need for large and balanced growth across a wide variety of supporting
dimensions
Common interests, shared aspirations and a strong desire to
collaborate
Calls for a new thinking about the approach to development
10
12. SHS EXPERIENCE OF SIMILAR DEVELOPMENT
CHALLENGES
These challenges arise when there is an economic development horizon, or strategy need, at a city-wide or
national level.
• The challenge is usually material, the solution is not in the hands of businesses or governments alone
and a collaborative planning effort is required
• Examples include national economic strategies for Ireland, Israel, Australia and Sweden, and city
strategies for Toronto and Auckland
• What is unique here, in our experience, is the absolute small scale of the Opotiki District relative to
size of the growth and infrastructure challenge.
The solution we suggest is a collaborative planning and development approach that reaches beyond the
mandate and resources of ODC:
• A “guiding coalition” of senior stakeholders to support an integrated transformation programme
• Within that a partnership with central government for infrastructure and social development
• Closer cooperation with regional council, and ongoing cooperation with Toi EDA (reflecting “the
opportunities are in the East; the resources are in the West”)
• Building substance on a strong and well governed relationship with iwi (principally but not
exclusively Whakatohea) as implementing partners on key social programmes.
With further development of a promotion strategy for Opotiki to help attract and retain skilled people (noting
housing and education needs)
11
14. AGENDA: THE RUN SHEET FOR THE AFTERNOON
Time Name Role Content
1.00 John Forbes Mayor, Opotiki
District
Welcome, introduction and Harbour Update
1.20 Rick and David Stakeholder Strategies Overview of the process and outcomes
1.30 John Galbraith Economic
Development
Aquaculture, kiwifruit, packing, manuka
2.00 Group discussion and
feedback
You do the work Divide into four groups ( Aquaculture/ Peter
Vitasovich; Manuka/ Karl Gradon;
Hort/Maori land/Chris Insley; Kiwifruit
packing/ Ian Coventry)
3.00 Barbara MacLennan
(Abby Tozer to assist)
Social issues and
opportunities
Mark Townsend
Ari Ericson
Infrastructure /
Waters
3.30 Group discussion and
feedback
More work for you Divide into two groups for each workstream
(Barbara, TBC, Mark, Ari)
3.45 Refreshments Beer O’clock You know what to do…
4.30 Rick and David Stakeholder Strategies Summary and next steps
4.45 John Forbes Mayor Wrap and thanks
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15. GOAL: IDENTIFYING WHAT IS BIG, UGLY AND NOT
SORTED YET?
What does everything that is happening mean for us?
What are our opportunities? (hint: this is a once in a lifetime breakthrough)
What needs to be put in place locally to take advantage of these?
• Of these things, what have we got, in train, and not got yet?
• Of the gaps, what should be our top priorities
What does this mean for Council actions?
14
16. METHOD: PERSUING A LOGICAL CASCADE FROM
OPPORTUNITIES TO CONSTRAINTS TO ACTION
Opport-
unities
• Examples: Aquaculture, Kiwifruit,
Omaio, Manuka
Obstacles
overcome
• Harbour infrastructure design, potential Crown
funding, labour supply, water planning
Remaining
issues
• Skills and training, housing, helping
families
Strategy to
resolve?
• Training courses, ,
community housing?
Priorities
and
capacity
• Work on
in LTP
15
18. THERE IS EXTRAORDINARY BREADTH AND SCALE
IN THE LOCAL ECONOMIC OPPORTUNITY
The harbour proposal could see 4 sea farms run over 12,500 ha and creating over 1000
jobs and generating $250m pa
Kiwifruit generates $322m EBIT from $600m revenue, and Zespri is planning to release
up 3000 ha of gold kiwifruit licences, nearly doubling production
• 3500 ha arable area currently in Maori land
Dairy generates $37m revenue and $5m EBIT in the Opotiki region
• A further 2500 ha of arable area is in Maori land
Kawerau is also implementing a rapid development plan that will increase labour
demand in the Eastern Bay, including:
• Poutama Trust dairy factory opening late 2020
• Penglin particle board plant
• New container terminal
17
Source: John Galbraith, workshop participants; more detail contained in presentation slides
19. AQUACULTURE INDUSTRY NEEDS SIX CONDITIONS TO BE
MET TO MAKE OPOTIKI AQUACULTURE SUSTAINABLE
Aquaculture development should be seen as an end to end value chain
• Involving farming, processing, transport and marketing
Six key conditions must be met to enable the aquaculture proposition:
1. Finance and the support of shareholders
2. Trained labour force: on water, processing, marketing, 1000+ FTEs
3. Shared resources (both within and between industries) to lower costs:
• IT and communications
• Skills and training, quality control
• Transport and logistics
4. Land/industrial park as part of Harbour development
5. Housing for expanding labour force
6. Image/social amenity of Opotiki
Harbour project dealt with in detail separately but noting that user charges to be agreed
Potential tourism (e.g. recreational fishing) spinoffs
18
Source: Peter Vitasovich, workshop participants
20. KIWIFRUIT IS SET FOR RAPID LOCAL EXPANSION WITH
MAJOR CAPEX, LABOUR AND INFRASTRUCTURE NEEDS
Zespri is soon to release 3500 additional ha of growing area, which over time will almost double
the current size of the gold kiwifruit harvest
Around $2 billion of capex will be required to fully develop the permitted area
• It is unclear whether this capital requirement will compete with/crowd out other capital
demands in the Bay (hopefully unlikely)
• Further intensification implies higher concentration of risk (PSA)
Massive seasonal labour force, including accommodation and pastoral requirements; and the
Opotiki community has a brand and social facilities deficit to overcome
• Drug-free workforce
• Housing, education
Scale of kiwifruit expansion will put additional pressure on Eastern Bay’s infrastructure
• 1300 trucks, 5000 driver movements), one bridge out
• Electricity, one line out
• Broadband for real time data connectivity
• Resilience is a concern
19
Source; Ian Coventry, kiwifruit working group, workshop participants
21. THERE IS CONSIDERABLE OPPORTUNITY AND
CHALLENGE IN MAORI LAND GOVERNANCE
The vast majority of developable land is Maori owned, requiring a different business model
reflecting the need to identify and manage collective owners. The potential scale is very large
• “5000 ha, $400m EBIT pa, $2bn revenue, 10,000 jobs” (Insley)
• Growth rate of Maori economy: CAGR = 15-20%
Access to Maori land and collective decision with dispersed, sometimes unknown rights
holders. The legislative framework is under review
• Local landowners want to retain the Office of the Maori Trustee
• Te Ture Whenua Act review - Minister Mahuta invited to visit Omaio
Social issues are multiple and complex:
• Whanau support, training, scaling up, climate change response
• Bottom up and top down solutions: iwi by iwi, hapu by hapu, whanau by whanau
There are multiple, well-enabled iwi involved (Whakatohea, Omaio)
• Is there a commonly understood action plan to move these issues forward?
Shared management and services may assist development: OSH, training, data, governance
20
Source: Karamea Insley, workshop participants, Maori Economy working group.
22. THE MANUKA INDUSTRY IS ALREADY A MAJOR
EMPLOYER AND POISED FOR FURTHER GROWTH
Current scale is already substantial
• Grown to 170 staff, $100m pa revenue in 3 years
• Exporting to Asia, Middle East and US
Deep partnerships with iwi allow effective operation on Maori owned land
Further expansion facilitated by improved public infrastructure (roads, UFB)
Skills training (often from work-readiness level) is a fundamental requirement
More workforce planning across the various growth sectors is required
• Social enablers like housing and quality education are increasingly seen as key
success factors for industry
21
Source: Karl Gradon, manuka working group, workshop participants
23. WORKFORCE CHALLENGES AND ASPIRATIONS
REFLECT A WIDE RANGE OF NEEDS
Workforce Challenges
Local understanding of opportunity
Aspiration/willingness
Literacy/numeracy
Housing
Drugs and alcohol
Driver licensing
Disjointed policy and systems
Confidence and freedom to learn by doing
Workforce Aspiration
Work security
A living wage (note rising minimum)
Being valued – opportunity to learn
and contribute
Good workplace culture incl. OSH
Families and whanau valued (incl.
flexibility to meet whanau needs)
Regular hours where possible
A future in the Eastern Bay
22
Source: B MacLennan, Toi EDA, workshop discussion; more detail contained in presentation slides
Multiple organisations, iwi groups and community groups seek to be part of the solution
24. INFRASTRUCTURE AND CLIMATE CHANGE REQUIRE
LONG TERM PLANNING AND INVESTMENT
Climate change requires planning for a 1+m sea level rise, 2.5 degrees warmer
and 10% + higher rain intensity within the next 100 years
This has significant impacts
• Harbour project engineering and cost
• Flood protection and river works
• Storm-water management
• Wastewater treatment
• Resilience of roads, electricity, broadband links
Town planning – will some areas be unliveable?
• A tipping point exists beyond which stop banks cannot be increased
• “resilient development in problem areas, “vulnerable” development in
safe areas
• Provision for ponding areas
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Sources: Mark Townsend, EBOP, Ari Ericson, ODC, more detail in presentation slides
25. SOCIAL AND INFRASTRUCTURE WORKSHOPS
STRESSED COMMUNITY CO-DEVELOPMENT
Key issues raised by workshop participants
• Whanau engagement
• Local Mana Whenua
• Need for an emotional value proposition to harness local commitment
• Jobs need to be decent and fair
• Tertiary providers need to step up and deliver in the E Bay
• Pastoral care remains essential
Implications going forward
• Opotiki cannot achieve economic potential without social development
• It needs a unified vision
• Shared social and economic service hubs would be helpful
• Rangatahi need exposure and education about the opportunities
24
Workshop participants: social development workshops
35. • Established in 1986
• Apples, pears, kiwifruit and hops
• Farming over 200 ha (1200 ha
available), $10m+ revenue
• Employ in excess of 140 people to
cover our orchard, packhouse and
coolstore operations
• Investment with ENZA in Envy apples
• Objective is to double current
production and establish substantial
third party supply
• Involved in berry research group
• Co-op state of the art processing
Kono Horticulture
Governance and Leadership Development Program (Omaio) December 2017
36. • Began investments in 1998
• Employ 230+ people
• $45m+ revenue with a target of
$60m by 2017
• Strategy is to grow and diversify
(waterspace, quota ownership
and processing)
• Value and volume strategy (live
lobster and oysters – mussels and
other seafoods)
• Strong R & D focus (oysters
aquaculture), undaria, sea
cucumbers, bioactives.
Kono Seafood
Governance and Leadership Development Program (Omaio) December 2017
37. • Began in 1998 with Tohu Wines
• 3 vineyards and a winery
• 3 brands – Tohu, Aronui and Kono
• 25 people, NZ sales team
• Growth objective to 240k cases by
2017
• Export 20 plus countries, $25m+
revenue
• Further expansion into new
products planned – craft beer?
• Gold Medals – Tohu 2014 – 15 best
year, launched cider 2015
Kono Beverages
Governance and Leadership Development Program (Omaio) December 2017
38. Beverages family
Tutū Cider is the newest addition to the
beverage family, joining Tohu, Aronui &
Kono wines. It’s the sprightlier younger
sibling of the whānau.
The name Tutū is a Māori colloquial term
for being cheeky and mischievous, as
often a younger sibling is.
Governance and Leadership Development Program (Omaio) December 2017
39. TASTE THE DIFFERENCE
NOSE
Fresh ocean and seaweed
aroma
BODY
Vibrant hints of brine, while
creamy & sweet
FINISH
Long sweet cucumber finish with
a mild metallic flavour on the lips
TEXTURE
Firm, but uniquely creamy and
decadent, almost velvety
Governance and Leadership Development Program (Omaio) December 2017
42. Our Future
• Investing in people, skills, creativity;
• Focus of high value add, margins;
• Access to and use of data
• Co-operation, collaboration, scale-ability;
• Invest together.
• Understanding a sustainable future! Science,
technology, business tools, IP;
• Owning PVR’s, brands, connected to consumers;
Governance and Leadership Development Program (Omaio) December 2017