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BusinessAugust 12, 2019

Ten takeaways from the NBR Rich List for 2019

happy businessman with money in hand  and computer

The NBR’s Rich List is always a big day for New Zealand’s wealthy elite. So who’s on it, who’s up, who’s down, and how did they get there? Here are 10 things we learned.

Technology still isn’t a golden ticket. Among the top 50 entries, there are a grand total of four tech entries. And of those, only Xero founder Rod Drury, and TradeMe founder Sam Morgan, can really make a claim to having real NZ-based success (and in Drury’s case, even that is debatable given Xero’s global footprint) The others on the list are Bulls-born Victoria Ransom, who made it big in the California startup scene, and Paypal founder Peter Thiel, who effectively bought NZ citizenship. There are more tech millionaires further down the list, but perhaps not as many as you might expect.

Property still is the golden ticket. It’s almost redundant to point out at this stage, but owning property (which generally requires wealth to start with) remains the best way to get really really rich, if this list is anything to go by. There are eight people in the top 25 (including the Goodman family, Sir Michael Friedlander and Peter Cooper among others) who made their money this way, including three billionaires, and the industry only gets more prominent as you move down the list.

There is still money to be made in media. They might not have the name recognition of someone like Rupert Murdoch, but Sir Julian and Nick Smith wield a similarly immense power over what people in the lower South Island read. As the latest scions of the family behind Allied Press, they own the only newspaper company in the country which is currently expanding, along with a range of magazines and local Dunedin channel Star TV. And they’ve done it by doing the opposite of what the major media companies have done – the Otago Daily Times hasn’t pivoted to video like NZME, and the company hasn’t slashed back on its regional and small town titles like Stuff. It has simply put journalists on the ground to do local news, and then charged readers for it. Incredible, eh?

Few will have heard of the richest person currently in parliament. The beers at Bellamy’s will be on Rangitikei MP Ian McKelvie tonight. He may be well down National’s list at number 34, but he’s also the only sitting MP on the Rich List this year. Former MPs like Sir John Key and Bob Clarkson (remember the guy who kept talking about his testicles?) also make an appearance.

The ageing population is a growth industry. UK retirement home mogul Cliff Cook’s wealth is up. Radius Care’s managing director Brien Cree’s wealth is up. The retirement facility developing Hurst Family’s wealth has gone up. John Ryder, who founded Ryman Healthcare and now is making big investments in retirement homes – guess which direction his wealth has gone? Yep, that’s right, he’s up too. With a huge cohort of baby boomers providing demand for these services across the Western world, it’s little wonder why.

Sir Bob Jones has finally made it to the magic billion mark. He’s a property tycoon, and perhaps the most high-profile rich dude of the last four decades. But it’s only now that Sir Bob Jones’ wealth has hit a billion dollars. That has grown dramatically alongside the value of commercial property.

Fay and Richwhite are still together. Well, on the Rich List they are at least. By a statistical quirk, David Richwhite and Sir Michael Fay are side by side, at 16th and 17th place respectively. How nice for them.

Apparently, it helps to be white. Seriously, you look through the profile pictures, and it’s almost inescapable. It’s not that the list is exclusively white or anything like that, it’s just that the vast majority of people on it are white. It’s either a complete coincidence, or related to a whole lot of reasons intersecting with class, inheriting family capital and systemic advantages.

Wealthy people are good at hiding how much money they’ve got. Take, for example, the curious case of Steve Owen, who the NBR plucked out as an example of this. He’s an expat living in Britain, he’s not on the rich list, and he might well be a billionaire. But nobody really knew an awful lot about him and his wealth until his ‘globetrotting’ daughter Kimberley became a high profile socialite.

The rich are getting richer. The NBR estimates that only 2% of those on the list from last year have seen their net worth fall. They’ve put that down to a strong sharemarket and “booming” commercial property values. But with the overall tally of money held by these individuals topping $10 billion for the first time, might it just be that wealth begets more wealth?

Keep going!
slack

BusinessAugust 12, 2019

Slack founder’s message to users: Stop using Slack all day

slack

Is Slack really the force for productivity it claims to be, or just another form of social media in disguise? Jihee Junn talks to Slack co-founder and chief technology officer Cal Henderson on the right (and wrong) ways to use his messaging platform. 

Every morning, Cal Henderson spends around 50 minutes walking to work, not because he has to – he’s the co-founder of a $20 billion company, after all –  but because he wants to. It’s good for him, he says: good for his health, good for his brain (he listens to audiobooks at two or three times the speed on his walks), and most of all, good for his productivity. 

“Walking to work, I use that as a real hardline disconnection between when I’m at home in the morning with my kids to when I’m out the door, taking that time to transition over to work,” says Henderson speaking from Slack’s Asia-Pacific headquarters in Australia. “One of the downsides to the ubiquity of the smartphone is it’s very easy to always be [in a space] where you’re working. You never truly disconnect, but I think it’s very healthy to be able to do that, to understand when you’ve stopped working for the day.”

As co-founder and chief technology officer of one of the world’s foremost work productivity tools (Slack currently has over 10 million daily users and more than 85,000 paying customers), Henderson’s own daily schedule embodies the company’s ethos at its best. He works just seven hours a day, spends at least three hours with his family, stays active for at least two hours, and still fits in that all-important eight hours of sleep.

L-R: Cal Henderson (CTO), Allen Shim (CFO), and Stewart Butterfield (CEO) outside New York Stock Exchange as Slack launches its public offering (Photo: Supplied)

But as most of us know, ‘productivity’ is easier said than done. We make plans but struggle to stick to them, we go to bed early but still stay up late, and we try hard to concentrate but get distracted by our phones, constantly pinging with cries for attention – from Facebook, Twitter, Instagram, Gmail, and yes, Slack too. 

Slack was designed to make workplace collaboration easier and more transparent, particularly through ‘channels’ for discussions on different subjects. But increasingly, there’s been a backlash – a Slacklash, if you will – at the very thing that was supposed to help us work better. Slack describes itself as the place “where work happens”, but in recent years it’s been described in less flattering terms: “disorganised”, “addictive”, a “non-stop chatroom”, and even “the ultimate productivity killer”. After all, many users are said to be sending hundreds, even thousands, of messages per day over Slack, and not all of them necessarily work-related. Often these discussions descend into idle chatter over the most mundane things on the internet and on life: what’s Twitter angry about now? Is so-and-so TV show any good? Who wants to get lunch? Do you think the moon landing was real? And so forth.

My colleagues and I know this descent into conversational chaos all too well: The Spinoff is a massive user of Slack, so much so that we’ve effectively been ‘banned’ from engaging in non-work related chatter every weekday from 10 to 4. If that sounds draconian, trust me, it’s not. When the words ‘several people are typing’ emerge below the text field while you talk about cheese at two in the afternoon, you know there’s a problem. 

Slack on desktop (Photo: Supplied)

“I think it comes down to the fact that Slack is a new kind of communication in the workplace,” Henderson says when questioned on the app’s sometimes disruptive presence. “Whenever there’s been a technological change in terms of how people communicate, it takes some time to understand how organisations can use it best. The same definitely happened with email 30 or 40 years ago when it was replacing the internal memo and it was causing terrible communication problems inside organisations. People thought ‘I have to read all these emails!’ and it took some time before people realised how best to use it.”

Compared to email (which it isn’t out to replace), Slack is a far more informal, accessible and frictionless mode of communication, reflective of a younger, more fast-paced workforce with “different expectations around how they identify with their work,” Henderson notes. “They want to feel closer to their company and co-workers… and understand how the work that they’re doing impacts their [community].”

These forces combined means that for many employees, this type of workplace communication serves as its own form of social media, replicating characteristics we regularly see on platforms like Facebook, Twitter and Instagram: the anxiety users feel when they don’t reply to messages straight away, the dopamine hit users get when their post receives a rapturous response, and the constant need to stay up to date on everything in real-time. 

Slack offices in San Francisco (Photo: Supplied)

Henderson, however, says there are clear distinctions between Slack and traditional social media platforms, because while the latter benefits from frequent usage, that doesn’t necessarily apply to the former.

“We don’t think that people spending more time on Slack is necessarily better,” he says. “If you’re using Slack successfully you’re using it every day, but we don’t expect you to be using it every moment of every day.

“[Our success doesn’t depend on] making sure you’re on Slack all the time. We’re not trying to drive more messages being sent or more time being spent looking at Slack. The primary stats that we look at is daily active users… If you spend all of your time reading and writing messages on Slack, then it would be hard to get your job done.”

Henderson points to the many features Slack has implemented over the years in an effort to be less distracting to its users, such as Starred channels (“being able to prioritise the information I need to consume is really important”) and Do Not Disturb mode (“nothing past 6pm is an ‘emergency’. If it’s a real emergency then they can call me”). Even emoji reactions were designed to cut down on low-value messages (‘yep’, ‘nope’, ‘thank you’) which help to declutter unnecessary noise in channels. 

“We try and add features so you control expectations around communications. Unlike email where the most I’ll get is an auto-response, and that happens after I communicate with you, on Slack we try to set an expectation up front of how likely you are to respond. It’s that useful social signalling of ‘sure send me a message but don’t expect me to reply’.”

mood

With that said, humans are unequivocally social creatures and with Slack, we start to prioritise social interactions with our co-workers over professional ones. While that’s not Slack’s intent, that’s its reality. We’re suckers for positive affirmation from our peers and frankly, we’ll get it wherever we can. Ultimately, we’re the problem, but it doesn’t help that platforms like Slack are now facilitating behaviour once reserved for socials settings in the one place that’s long been off-limits: the office. Is that a good thing? It depends on who you ask. 

Henderson, of course, takes a more positive view. He points out that good company culture is highly important to today’s emerging workforce, one that prioritises an emotional connection with their careers far more than previous generations.

“Play isn’t totally antithetical to work, you don’t have to be serious all the time and those little moments of joy are actually really important,” he says. “[It’s important to note that] not all interaction with co-workers is a distraction… We definitely want to be careful about demonising communication between teams as a waste of time because it’s often at the core of what makes a team successful – their ability to be able to work together as a group.”

It’s a tightrope to walk between distraction and disruption, one which most of us still grapple with today. With that said, we better get used to it – and fast. There’s no turning back from this highly collaborative, highly digitised mode of workplace communication as more people work remotely and in more ‘knowledge-based’ roles. According to one study, the “team collaborative applications” market is predicted to grow nearly 70% in the next three years, and according to Henderson, the move to channel-based communication tools is inevitable. 

“Hopefully that [tool] will be Slack. But whether it’s Slack or another tool that’s successful, I think channels and the benefits of communicating in that way are going to be inevitable. That kind of shift in how people communicate will take time to understand and [take time to figure out] how it’s going to fit into any given organisation.“