Retirement Village Association Ltd

YEARBOOK 2009
 WALTON
AGED TO PERFECTION...
MELBOURNE ! SYDNEY ! BRISBANE
w w w. w a l t o n c o n s t r u c t i o n . c o m . a u
At Wa l t o n , w e r e c o g n i s e
the importance of quality
workmanship within Aged Care
services and facilities, and
understand the complexity and
specific needs of our clients
associated in this sector. By
working closely with our clients
from project inception, we are able
to develop comprehensive design
and construction solutions for each
project as well as offer construction
advice and potential cost savings
within the design parameters.
Our team at Walton are also
experienced in the complex
management and logistic issues
associated with projects where
the facility remains operational
during the works. We are
currently working on a number of
aged care and retirement
developments within both the
public and private sectors.
Contractor of First Choice for
Aged Care and Retirement
Projects – Walton Construction.
WALTON
Retirement Village Association Ltd

YEARBOOK 2009
RVA Yearbook 2009

Contents

4 Chairman’s Report 39 RVA Manager of the Year 75 Sanctuary Energy

Award 2009
5 RVA Board Members 78 Going Green

6 CEO’s Report 41 Gareth Norman

80 The inconvenient truth
11 Standards Report 42 Andrea Riviere about change management:
Why it isn’t working and
12 Member Benefits and 44 Peter Snell what to do about it
Services
46 Sue Loeliger 92 Achieving Culture Change
13 Advocacy and Member
Services (and Realising the Benefits)
49 Glenis Trumbich
14 National Committees 95 HVAC
53 NSW/ACT Regional Report
Opportunities for the triple
16 RVA Gold Partners
60 QLD Regional Report bottom line
18 Corporate Partners:
Supporting Research 62 SA/NT Regional Report 98 Retrogreening
A must for stability in the
24 Corporate Partners
67 VIC/TAS Regional Report commercial property sector
37 Village Charter and Code
of Conduct 73 WA Regional Report 101 Talking about Security

Retirement Village Association Ltd
Suite 4/650
Burwood Road
HAWTHORN EAST VIC 3123
Tel: (03) 9804 0466
Fax: (03) 9804 0048
Email: national@rva.com.au
Web: www.retirementvillagesaust.com.au
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2
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RVA Yearbook 2009
Industry
Chairman’s Report
By Simon Owen
I am pleased to present my first report as
Chairman of your Association.
This year has been a challenging year
for our industry with the pressures of the
global financial crisis. From my discussions
with over 200 members during the course
of the year it is evident that there are two
immediate issues facing the industry—
access to capital and a slowdown in the
sales cycle.
Whilst it would appear that sales have
improved in the last quarter, it is still
evident that access to capital is a key
impediment to the growth of our industry.
Access to capital is likely to be an enduring
problem in 2010 and it is difficult to
foresee any immediate relief in this area.
Notwithstanding the challenges of the
GFC the RVA has progressed a number of
key initiatives and outcomes in 2009 that
will assist the industry to move forward in a
sustainable manner. It has been a year of
tremendous challenge and of great
opportunity.
Key achievements for 2008/09 have
included:
• Working with the ATO to achieve fairer
GST treatment on village development
and acquisitions and housing
affordability.
• Continuing to influence government
policy through stakeholder facilitation
and contribute to the government’s
ageing initiatives.
• Having ongoing dialogue with the
NSW government (Office of Fair
Trading) in respect to the review of the
regulations for retirement villages. The
RVA has provided instrumental advice
to ensure a fair go for operators and
maintain the standard of the industry.
• A major victory in respect to Stamp
Duty in Victoria (with proposed
amendments to the Duties Act that
would have negatively impacted
retirement villages) that has resulted in
savings of millions of dollars to
operators and residents. Retirement
4
villages now have their tax exempt
status guaranteed through a specific
clause to be inserted into the Act. The
change will protect Victorian seniors
from paying thousands of dollars in
stamp duty.
The RVA has also been active in key
legal cases in Queensland that have the
potential of negatively impacting future
village operations and significantly impact
returns.
The first year of the Queensland RVA
office has been a great success, with
membership growing week by week, a
stunning inaugural conference (with over
110 delegates in attendance) and a number
of well attended professional development
events.
Advocacy continues to be one of the
RVA’s key activities and we continue to
strive to preserve our freedom to operate in
a sustainable and responsible manner. This
is essential for owners, operators and
developers who are looking to make
investment decisions that require long-term
legislative certainty.
During the year the Board reviewed the
Association’s Advocacy and Member
Services Priorities for 2008-2009. These
concentrated on the key member services
of advocacy, communication, sustainability
and creating a high-performance
organisation. The RVA is now pursuing
more than 40 advocacy priorities.
Earlier this year I enjoyed the
opportunity to be acting CEO of the RVA
for approximately five months. This gave
me a tremendous first hand view of the
challenges facing the industry, the
opportunities ahead and innovative
practices being adopted across the sector. It
also filled me with great confidence about
our future.
As President I have a specific issue
which I am keen to focus on during the
course of my role. The retirement industry
has a solid future ahead based on the
significant ageing of the population over
the next forty years. But the opportunity
gets really exciting if we can lift the
penetration rate of villages in Australia. We
have a great product to sell and the RVA
can be at the forefront in promoting
retirement villages as a great lifestyle
choice with prospective residents,
regulators and of course, the broader
community.
Thank you to each of the RVA’s
Regional Committees for the considerable
time they invest in assisting the association
and without whose support the RVA would
cease to function. They are the finger on
the pulse of state and local issues.
I would like to acknowledge the tireless
contribution of Jane Holdsworth, the
former CEO of the RVA who departed in
March this year. We welcome our recently
appointed CEO, Andrew Giles, who in a
short period of time has already made a
great contribution to the association.
I would like to sincerely thank the
members of the RVA Board for their
diligence, guidance and support. They
work tirelessly for the industry. They offer
their time voluntarily for the betterment of
the industry and their commitment is to be
commended.
I would especially like to thank Tom
Galletta for his outstanding service as
immediate past President of the RVA. His
support and wise counsel is greatly
appreciated and the legacy he leaves the
RVA is truly significant.
Finally, thank you to all our members
for your contribution to our industry. We
are all responsible for ensuring that the
future is filled with opportunity and
sustainable in its growth pattern.
I am filled with great optimism about
the future of our industry. We owe it to
ourselves and our community of older
Australians to provide great environments
for people to live in.
I look forward to catching up with you
all at the National Conference.
RVA Yearbook 2009

Industry

RVA Board Members

Derek McMillan, Wayne Hogan Kevin Ryan Andrew Macintosh Roger Kwok
Deputy Chairman

Stuart Nicolson Dennis Chamberlain Tom Galletta Michael Fallon Angus Kukura

RVA VISION
To be valued and respected nationally by all our
stakeholders for enhancing the viability and
excellence of the Australian retirement village industry.

RVA MISSION
As the peak body, we aim to lead the building and
growth of a sustainable and responsible retirement
village industry that will ensure our member villages
are the preferred lifestyle of older Australians.

5
RVA Yearbook 2009
Industry
CEO’s Report
By Andrew Giles
When we started the 2008/09 financial
year, who would have thought that our
world would be turned upside down?
The economy was in full flight,
unemployment levels at historic lows,
property markets bullish and our industry
was thriving. It seemed the boom would
never end.
September 2008 marked a moment
in history for us all – the global financial
crisis.
Like all industries worldwide, the
retirement village industry has faced
many challenges in the past twelve
months. However, the RVA has sought to
continue its role, in the face of adversity,
to lead and support our members.
Membership continues to increase.
The RVA currently has more than 685
members nationally including:
• 500 village members
• 125 regional associate members
• 40 national associate members
• 20 industry members
We continue to be the only
organisation solely focussed on the
future growth of retirement villages in
Australia.
The GFC has brought with it the need
to respond, to re-think, to innovate and
to find solutions to problems we hadn’t
seen in decades. Issues like how to
access finance for projects, how to
manage tight budgets, how to ensure our
industry could freely operate and grow
without adverse legislation or
regulations, how to achieve sales in
sometimes difficult markets to name a
few.
We have survived well so far and are
now strongly positioned to grow again.
The RVA (supported by a network of
industry professionals who freely
dedicate their time at a regional
committee and national board level), has
continued to achieve results for our
6
members in difficult times.
Now is the time to stick together – as
one group with a common goal of a
strong and prosperous retirement village
industry, creating an industry that
provides the best outcomes for our
communities and for older Australians.
One loud voice is better than many
small echoes in the darkness! That is why
being a member of the RVA is more
important than ever before.
It is absolutely critical that for the
retirement industry to prosper and to
have freedom to operate and push back
on ever increasing consumer advocacy
that there is a well funded and supported
association representing owners,
operators, developers and managers.
Our Industry
Between 2009 and 2024 the population
of people over 55 years of age will grow
by more than 2.6 million people – more
than twice the rate of the general
population. Of this, those over 75 years
will grow by nearly 1 million people.
The need for retirement villages is
massive.
In Australia we currently have 1850
villages with approximately 115,000
dwellings and 160,000 residents.
Currently, 5.5% of people over the
age of 65 live in a retirement village.
There is much we can do to positively
influence this statistic.
The top five private operators control
greater than 40% of retirement market.
These include the likes of Aveo, Lend
Lease Primelife, Stockland, Aevum and
Australian Unity, all of whom are active
members of the RVA.
In addition, the church and
charitable sector also has around 40% of
the market and is currently growing its
share through acquisitions and
expansions. The RVA continues to work
closely with the church and charitable
sector to ensure that we can expand our
presence and deliver value to this group.
Our Future
We have developed a Strategic Plan to
guide the organisation in the next three
years and to fulfil our commitment to our
valued members. It will focus on four
key areas:
• Delivering greater value to our
members – with a particular focus on
increasing the penetration rate of
people over 55 into retirement
villages
• Advocacy – leading the industry on
key issues that ensure we have
freedom to operate
• Accreditation – ensuring that our
industry can self regulate in the
delivery of quality living for older
Australians as it has done for decades
• Market intelligence – providing up to
date cutting edge research and
information to our members
Our goal is for it to be an absolute
must to be a member of the RVA if you
operate in the retirement village industry.
Key planned activities for 2009/10
include:
• New professional development
activities, including more information
and training for the industry to
achieve greater strength
• New exciting events, including social
networking and professional
development
• Overseas fact finding tours for our
members to understand best practice
in retirement villages worldwide
• Benchmarking of the industry, to
facilitate greater information back to
operators and prospective industry
entrants (salaries, management fees,
sales rates etc)
CONTINUED ON PAGE 8
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RVA Yearbook 2009
Industry
CEO’s Report
• A planned national open weekend,
where we will invite every
Commonwealth, state and local
elected member to visit and tour a
village. We believe this will raise the
profile of villages in government and
the broader community and have a
flow-on effect in sales through
increased media coverage at a
national scale.
• Increased research on key industry
issues including economic benefits,
drivers of choice for residents,
sentiments and feedback from our
160,000 residents currently living in
villages across Australia.
• Linking in with important issues
facing our community and
government including affordable
living for older Australians and the
key role retirement villages play in
this area.
The organisation
We have strengthened the organisation
with some key national appointments
and excellent Regional Managers in each
state. This has translated to great
achievements this year:
• Continued the focus on professional
development for operators. This
included the roll out of a national
professional development series in
respect to economic drivers and legal
issues. MacroPlan Australia and
Gadens Lawyers workshops were
attended by nearly 350 industry
participants. We are seeking to
establish a certified manager’s course
aimed at enhancing the skill base of
managers and assisting in recruiting
skilled and enthusiastic people into
the field.
• Ran several events, industry
breakfasts and lunches that attracted
hundreds of participants
8
• Achieved some major victories in
respect to key advocacy priorities (as
outlined in the Chairman’s report)
• In respect to Government lobbying
and representation, the RVA met
regularly with the Ministers for
Ageing, Consumer Affairs and Fair
Trading Ministers, department heads
and ministerial advisory staff to
represent the interests of members
and raise awareness of the industry
and the market in all states in
Australia.
• Continued to present at many
significant summits and conferences,
contributed to federal ageing
initiatives, spoke to consumer groups
and made industry representative
submissions.
• Participated in a Federal Government
Ageing Advisory Committee that
offers the industry the opportunity to
influence government policy in the
area of seniors housing.
• Regional offices conducted regular
Managers Forums that offered RVA
Regional Managers feedback on the
industry and successful networking
opportunities.
• The RVA national conference
AdvantAge08 was held in Perth on
11th-14th of November 2008 at
Burswood Entertainment Complex
and attracted nearly 450 delegates.
• Regional conferences were held in
NSW/ACT, VIC/TAS, SA/NT, WA and
QLD. They provided educational and
networking opportunities for
members and associate members and
attendances were at record levels.
The RVA continues to receive great
support from sponsors at all regional
conferences and our sincere thanks
go to these valued partners.
• The Manager of the Year awards were
presented at the various regional
conferences. Our congratulations go
to all of the regional winners and
also the 2008 National Manager of
the Year, Kaye Dix from Parklands
Village in Western Australia.
Accreditation
The RVA continues to deliver a high
quality accreditation program that
ensures best practice industry standards.
This is of significant value not only to
residents and potential residents (which
can translate into higher sales), but in
ensuring that there is no requirement for
Government to take an interventionist
approach as they have recently done in
the health sector.
The RVA is in the process of
establishing even greater value in the
scheme by seeking third party
certification to ensure independence and
international recognition of our excellent
scheme. In addition, the RVA is pursuing
a quality assurance “heart foundation”
tick of approval style of accreditation
that will provide significant market
benefits to operators.
Of note is that the new ARVA
handbook, with new standards, will be
released at the 2009 National
Conference in Sydney.
Member Communications
The development of the RVA database
has made member communications
easier and more frequent. We are
intending for this to be an online
resource in the next twelve months
which will be of great benefit to the
organisation and industry.
Communications remains a core
function of the RVA we have sought to
provide our members with up to date
information through the website
(fortnightly News Monitor) and regular
CONTINUED ON PAGE 10
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RVA Yearbook 2009
Industry
CEO’s Report
updates by the CEO and key staff on
major industry issues.
The RVA website has had a
significant upgrade to add better value
for members by providing increased
information about RVA activities. This
now includes a blog section and
dedicated member section (which will
soon include research and information
only available to our members).
Member surveys
Industry feedback is critical to identify
issues of concern. The RVA has and will
continue to conduct regular surveys with
our industry to assist with the flow of
information back to our industry. Key
issues will include sales and marketing,
salaries, management fees and the ability
to benchmark.
A working group and committee was
established for GST lobby representation
to the Australian Tax Office, which is
now meeting regularly with assistance
from our great industry supporters like
KPMG and Blake Dawson.
During 2008 nearly 1500 residents in
RVA member villages throughout
Australia were randomly surveyed as part
of the ARVA accreditation process. The
overwhelming majority of residents
surveyed were very satisfied with all
facets of retirement village life, which
shows the great performance of our
accredited villages.
Resident Information Packs
In 2007 the RVA posted out over 4500
resident packs to seniors interested in the
retirement village lifestyle. The packs are
tailored to each state, including lists of
RVA members’ villages and consumer
information booklets. The packs also
contain a Questions & Answers booklet
and information about accreditation.
Prospective residents are encouraged to
10
look for the ARVA logo and seal, giving I would like to offer my heartfelt
them confidence that a village has met thanks to the staff of the RVA in the
the 29 ARVA standards. national and regional offices for their
enthusiastic, committed and inspired
Media
efforts throughout 2008/09 – a year that
The RVA has been proactive in
has been tough for all.
generating media stories to promote the
2009/10 is shaping up to be the best
benefits of retirement living and to
yet for both the RVA and the retirement
respond to key issues. Recent media
village industry. I certainly am excited
coverage has included major
about the prospect of assisting our
metropolitan and local newspapers,
valued members to grow their businesses
local and regional radio, and industry
and to ensure Australia’s premier growth
newspapers and magazines.
market in property continues to thrive.
Acknowledgements
Andrew Giles
Finally I would like to acknowledge and
Chief Executive Officer
thank the many people who have
contributed to the success of the RVA
during 2008/2009.
I am fortunate to have a strong and
supportive Board. In particular, our
Chairman, Simon Owen, who has
provided outstanding guidance during
the year and also acted as CEO for the
organisation for five months during
2009. Many of the RVA’s recent
achievements are a result of Simon’s
vision and ability to execute successfully.
I would also to thank all of the
members of the national and regional
committees who dedicate their time on a
voluntary basis to make great strides in
our industry.
The RVA would not exist without our
members, and we sincerely thank you all
for your ongoing support.
Thank you to our valued sponsors
who financially supported RVA events
and promotions through the year and
also our industry supporters, who have
been on hand to provide advice and
guidance on specific industry matters.
Many do this pro bono, which during
tough financial times cannot be
underestimated in respect to the
generosity shown.
RVA Yearbook 2009

Industry

Standards Report

The Australian Retirement Village Accreditation (ARVA) should translate to increased ease of interpretation of standards
Scheme has steadily grown in 2008/09, evidenced by the and facilitate higher numbers of applications.
number of applications.
APPLICATION PROCESSING
A total of 69 villages were accredited during the period,
The average time for the accreditation process to occur, that is
which was up 40% on the previous year.
from application to the granting of accreditation, has remained
A 20% increase is planned for 2009/10, meaning close to
at about 6 months throughout the year. With greater planned
90 accreditations achieved.
resourcing we anticipate improving on that in the next year.
This highlights the industry’s strong interest in accreditation
and the importance of a robust self regulation process that COURSES/WORKSHOPS
ensures the quality and standard of our industry. How to Prepare for Accreditation Courses and Surveyor
2009/10 will also see an increased focus on marketing the Workshops have been successfully run back to back in most
benefits of accreditation, which should see significantly higher regions on a six monthly basis.
penetration than achieved previously. Managers about to embark on the accreditation process
have remarked how invaluable the course has been in
Applications vs Accreditations 2008-2009 FY
clarifying the process and dispelling many myths around
80
accreditation, particularly that it is incredibly arduous or
70 complex. Those accredited have commented on how valuable
the process was for improving business and resident outcomes.
Applications/Accreditations

60
Workshops for existing surveyors have proven extremely
50 beneficial in updating and up-skilling surveyors in their role.

40 RESIDENT SURVEY RESULTS

Random surveys of residents of villages undergoing
20
accreditation have provided consistent results as in previous
20
years with an impressive 75% rate of return.
Responses were very positive and highlighted residents
10 feeling safe and secure in their villages, being appreciative of
0
staff and proud of the general presentation of villages.
Residents reported more than 90% satisfaction across more
July

August

September

October

November

December

January

February

March

April

May

June

than six service, facility and lifestyle categories. This highlights

the great regard in which accredited villages are held.
2008-2009 FY
The one to five year period remains the predominant time
Target Applications Accreditations
those surveyed had been a resident.
ARVA SCHEME REVIEW
The ARVA Scheme Review has now been completed.
Representatives of the Standards and National Accreditation
Committees have spent many hours rationalising and
eliminating ambiguities identified in the scheme.
The Review is awaiting approval by the RVA Board and it is
anticipated that a new edition of the ARVA Handbook
incorporating the review will be launched at this year’s
National Conference. The main features of the review are that
the number of standards has been reduced from 29 to 27 and
guidelines appearing in the current edition have been
incorporated as criteria or in the text of the standard. This

11
RVA Yearbook 2009
Industry
Member Benefits
and Services
Why you should be an
RVA member
Membership of the RVA is a must for
your business. The RVA is the peak
national body representing and
promoting the retirement village industry
as a lifestyle choice, providing
leadership to the industry since 1989.
With an underlying strength of over 680
village and associate members, the RVA
plays a critical role in the ongoing
growth and sustainability of the
retirement village industry and has
achieved success in lobbying for
legislative and policy changes.
The RVA provides a range of
comprehensive member services that
support your business, including
advocacy, accreditation, research,
promotion and communications.
As a member, you can
maximise the value of
your membership by
accessing the following
benefits:
Business Promotion
• Listing your village or company on
the RVA website
Communication
• The latest regulatory, legislative,
industry and business news including
publications, online newsletters,
research, website content and
bulletins
• The RVA Year Book
Specialist Insurance
• Specialist retirement village
insurance through VillageWISE at
competitive rates
12
Networking Opportunities • Assistance in interpreting new
• Invaluable networking opportunities legislation
and forums at local, state, and • Responding to government
national levels discussion and issues papers
• Linking your village or company with
Industry Representation
professional industry service
• Providing timely information about
suppliers
regulatory and legislative updates
• Regular access to meet with
• Representing the industry on
retirement village owners,
government and community panels
developers, operators, managers and
and advisory groups
investors
• Facilitating access to government
Industry Advice leaders and officers to ensure
• Advice from valuable industry members are represented with a
specialists on specific issues such as strong industry voice
legal, insurance, economic, finance
Accreditation
and lifestyle matters
• Discounted retirement village
• Free initial legal telephone advice
accreditation fees for village
regarding workplace services from
members
one of Australia’s top legal firms
• Providing assistance and training on
Professional Development how to become accredited, and
• Seminars, workshops and business improvement
conferences including the RVA’s
Corporate Partnership
annual regional and national
conferences
Opportunities
• Special member rates for the RVA’s
• Providing exclusive benefits for RVA
Corporate Partners who provide
national professional development
financial support for advocacy and
program
research priorities that will benefit
Sponsorship and Advertising the industry
• Sponsorship and advertising activities
Research
that provide exposure for your
• Providing Industry research and
business to targeted audiences,
intelligence
particularly through the Member
Services Directory. Promotion
• Positively representing and
Members benefit from promoting retirement village living
the following RVA through mainstream media
nationally.
services:
Powerful Advocacy Contact the RVA today on 1800 240 080
• Representation and lobbying on our to find out more about membership.
members’ behalf to ensure the
ongoing growth and viability of the
industry
RVA Yearbook 2009
Industry
Advocacy and
Member Services
Our Vision
To be valued and respected nationally by
all of our stakeholders for enhancing the
viability and excellence of the Australian
Retirement Village Industry.
Our Mission
As the peak body, we aim to lead the
building and growth of a sustainable and
responsible retirement village industry
that will ensure our member villages are
the preferred lifestyle choice of older
Australians.
RVA Objectives
1. Advocacy
a. Fairer Taxes and Legislation
• Lobby for fairer GST treatment on village development and acquisition
• Protect the legal rights and viability of the industry
• Advocate equitable Government taxes and rates for residents and village
operations
b. Senior Housing Affordability
• Encourage more affordable housing for seniors
• Influence Government policy through stakeholder facilitation
• Contribute to Federal ageing initiatives
c. Leading Industry Voice
• Be the primary source of industry intelligence
• Be an authoritative and effective industry member representative
• Initiate and maintain liaison with consumer groups
• Prepare articulate and rational representative submissions on behalf of the
industry
• Co-operate with industry bodies for policy change
2. Sustainable and Responsible Industry
• Provide leadership in promoting the benefits of retirement villages
• Promote industry excellence through accreditation
• Facilitate continuous quality improvement program for professional development
• Encourage excellence in the development of thriving communities that foster
enhanced wellbeing for seniors
• Set the standards of industry governance
3. Build an Environment Conducive to Business Growth and Industry
Viability
• Broaden membership base
• Promote RVA members
• Provide an information source for RVA members
• Support RVA members with professional association services
• Provide regular conferences and networking opportunities
• Obtain ‘potential resident’ referrals
4. High Performance Organisation
• Operate at peak standards of corporate governance
• Set and achieve high-level performance goals
• Resource the skills and capability to achieve set goals
• Recruit and retain professional, skilled and motivated staff
• Ensure the RVA brand is highly recognised and trusted.
13
RVA Yearbook 2009

Industry

National Committees

Government Committee National Office

Advises and consults with all tiers of government on industry- Retirement Village Association
related matters. Suite 4/650 Burwood Road, Hawthorn East VIC 3123
Chair: Derek McMillan Tel: 03 9804 0466
Fax: 03 9804 0048
Planning & Development Committee
Email: bronwyn@rva.com.au
Proactively seeks reforms on specific planning issues and
legislation that encourages the development of retirement NSW/ACT Regional Office
villages. Suite 3/Level 4, 162 Goulburn Street, Surry Hills NSW 2010
Chair: Stuart Nicolson Tel: 02 9261 1777
Fax: 02 9261 5899
Marketing & Communications Committee
Email: mark@rva.com.au
Responsible for ensuring the effective marketing, branding and
communications by the RVA to its members and all industry SA/NT Regional Office
stakeholders. 5/259 Glen Osmond Road, Frewville SA 5063
Chair: Angus Kukura Tel: 08 8338 4500
Fax: 08 8379 8599
Professional Development Committee
Email: sandra@rva.com.au
Develops relevant and dynamic national professional
development programs to enhance the learning and knowledge WA Regional Office
of industry members. Suite 51 Plaistowe Mews, 102 Railway Street, West Perth WA
Chair: Dennis Chamberlain 6005
Tel: 08 9322 9909
Standards Committee
Fax: 08 9322 9077
Ensures the continuous improvement and robustness of the
Email: linda@rva.com.au
ARVA accreditation scheme.
Chair: Andrew Macintosh VIC/TAS Regional Office
Suite 4, 650 Burwood Road, Hawthorn East VIC 3123
National Accreditation Committee (NAC)
Tel: 03 9882 9349
Approves accreditation for villages that have met all the
Fax: 03 9804 0048
standards of the ARVA accreditation scheme.
Email: david@rva.com.au
Chair: Bob Browne
QLD Regional Office
National Conference Committee
PO Box 9130, GCMC, Bundall QLD 9726
Oversees the delivery of the annual RVA national conference.
Tel: 07 5526 0380
Chair: Kevin Ryan
Fax: 07 5526 0304
Audit Committee Email: genell@rva.com.au
Oversees the preparation and completion of the annual audit
and corporate governance of the RVA.
Chair: Michael D Fallon

14
They
understand
my business
{because we understand the realities of the Retirement Village Industry}

At BankWest we understand the issues our clients face in this

ever evolving industry. Which is why we are able to add value to
discussions over and above tailoring your financing solution
With direct access to your own dedicated Retirement lending
specialist who understands and talks the industry language,
we work with you to finance your specific requirements.
To speak with a dedicated Retirement Specialist who really
understands your business, please call;
National Director Nick Carter (02) 8299 8285
NSW Rod Baptist (02) 8299 8385
Vic Shalain Singh (03) 9641 2964
SA Duane Cock (08) 8419 1145
WA Richard Bator (08) 9449 6163
Qld Shari Breen (07) 3004 9470
Qld Robert Franklin (07) 3623 5063

Bank of Western Australia Ltd ABN 22 050 494 454 AFSL 236872
RVA Yearbook 2009

Industry

RVA Gold Partners

The RVA wishes to acknowledge the generous support of its Gold sponsors
throughout the past year.

RVA Silver Partners

16
Retirement is the celebration of a job well done
,IFEåATåANå!EVUMåVILLAGEå
ISåEXACTLYåWHATåRETIREMENTå
LIVINGåSHOULDåBEånåFESTIVEåANDå
FULlåLLINGå!åLIFEåOFåVIGOURåANDå
VARIETYåOFåFRIENDSåANDåFUNå
ANDåOFåBOUNDLESSåRELAXATIONå
ANDåREWARDå
3INCEååWEåHAVEåHELPEDå
THOUSANDSåOFåRESIDENTSå
ENJOYåTHEIRåBESTåYEARSåINåOURå
RETIREMENTåCOMMUNITIES
sååLEVELSåOFåCARE

sååRESIDENTS

sååRETIREMENTåCOMMUNITIES

sååDEDICATEDåSTAFF

såå/VERååYEARSåINDUSTRYå

EXPERIENCE

0HONEååååååWWWAEVUMCOMAU

Knowledge is the path to success.

Providing practical advice to developers, owners
and managers in all aspects of retirement village
development and operations.
Peter Myhill Phoebe Doolette

To discuss how we can assist you, please contact

Peter Myhill or Phoebe Doolette on 08) 8111 4000
LATH5751

pmyhill@oloughlins.com.au or pdoolette@oloughlins.com.au
RVA Yearbook 2009
Industry
Corporate Partners:
Supporting Research
The high cost of securing professional advocacy services and
commissioning top-level research has led to the Retirement
Village Association offering an innovative way to seek financial
support. The RVA’s Corporate Partner program allows the
Association to deliver on its core objectives for 2008-2009 and
beyond. The program to attract Corporate Partners is an
important initiative for the RVA, which has traditionally relied
on the voluntary efforts of hard-working Regional Committees
and the goodwill of associate members to provide technical
advice and guidance in its advocacy and research work.
However, in a dynamic operating environment, advocacy
issues for the industry continue to evolve, and the RVA
understands that it cannot continue to rely on this outstanding
voluntary support. The Corporate Partner program will assist
the RVA to drive its strong advocacy agenda, as well as support
the development of a new research database and Member
Services Directory that helps members better understand trends
in the retirement village industry. Four levels of Corporate
Partnership are available, each with varying levels of
engagement, ranging from exclusive access to RVA advocacy
18
and research information to priority involvement in RVA
professional development activities. Being a Corporate Partner
of the RVA demonstrates a firm commitment to the ongoing
growth of the retirement village industry, and will brand a
business as a champion for industry development.
There are significant tangible benefits too, including
recognition at major national RVA events, acknowledgement in
the RVA Year Book, complimentary tickets to the Business
Excellence Awards in 2009, invitations to exclusive RVA
forums, and other ongoing promotional opportunities.
Corporate partnerships with the RVA are available on 4 levels
as detailed below:
• Platinum (limited to 2 principal partnerships ) – $50,000
• Gold (limited to 5 partners) – $20,000
• Silver (limited to 10 partners) – $10,000
• Bronze (unlimited) – $5,000
Further details about the RVA’s Corporate Partner program are
available on the RVA website – www.rva.com.au
EXPLOR E
TH E FUTU R E
NTU ROUS
D EVE LOPING ADVE
NS
R ETIR E M E NT OPTIO

HERNIMAN+GROUP Services: 5-7 Peel Street Collingwood VIC 3066

Architecture Property Logistics Phone +61 3 9419 7500
Interior Design Business Strategy Email herniman@herniman.com.au
Graphic Design Urban Design Web www.herniman.com.au

Relax.
You’ve earned it!
RVA Yearbook 2009

Industry

Corporate Partners:
Supporting Research
PLATINUM – $50,000
(LIMITED TO TWO PRINCIPAL PARTNERSHIPS)
Speaker opportunities
• One speaker at the RVA National Conference (attended by
over 400 delegates)
• One speaker at each RVA Regional Conference
• One speaker at the Business Excellence Awards
RVA Events
• Complimentary invitation to the CEO Forum
• A tailored RVA event or product launch
• Complimentary invitation to all RVA ‘premium’ events e.g.
networking breakfasts and industry workshops (excluding
conferences and non-applicable events)
• Complimentary invitation to all RVA Regional
Events/Professional Development Forums and smaller scale
events organised in specific regions (excluding conferences
and non-applicable events)
RVA Advertising
• Full page advertising in the Supplier Handbook – the RVA
Associate Members’ Services Directory
• A profile in the Supplier Handbook
• A listing in the Supplier Handbook
• Four times per year – a company overview listing in the
RVA News Monitor (National send out)
• Company overview listing on Regional Industry Newsletter
RVA Yearbook
• Company profile/case study
• Company acknowledgement (Increased content )
National Conference
• Four delegate tickets
• Exhibitor Stand
• Satchel Company Insert
Packages for the RVA website
• Base Listing (Name, Address, Number)
• Logo
• Website Link to your company site
• Listing plus 100 word profile linked to the soft copy of the
supplier handbook
• Case study editorial on the RVA website
• Banner – top or bottom (Time limited banner displayed
quarterly)
• Photo
• Priority Listing
Market intelligence
• Regular updates on research and advocacy issues
GOLD – SPONSOR $20,000
(LIMITED TO 5 SPONSORS)
Speaker opportunities
• One speaker at each RVA Regional Conference
RVA Events
• Complimentary invitation to the CEO Forum
• A tailored RVA event or product launch
• Complimentary invitation to all RVA ‘premium’ events e.g.
networking breakfasts and industry workshops (excluding
conferences and non-applicable events)
• Complimentary invitation to all RVA Regional
Events/Professional Development Forums and smaller scale
events organised in specific regions (excluding conferences
and non-applicable events)
RVA Advertising
• Half page advertising in the Supplier Handbook – the RVA
Associate Members Services Directory
• A profile in the Supplier Handbook
• A listing in the Supplier handbook
• Twice a year – a company overview listing in the RVA
News Monitor (National send out)
• Company overview listing on Regional Industry Newsletter
RVA Yearbook
• Company profile/case study
• Company acknowledgement (Increased content)
National Conference
• Two delegate tickets
• Exhibitor Stand
• Satchel Company Insert
Packages for the RVA website
• Base Listing (Name, Address, Number)
• Logo
• Website Link to your company site
• Listing plus 100 word profile linked to the soft copy of the
supplier handbook
• Case study editorial on the RVA website
• Photo
• Priority Listing
Market intelligence
• Regular updates on research and advocacy issues

20
Elynwood Services Group… A Complete Service Solution
Elynwood Services Group is a family owned, Quality Assured, Australian Business, established
and operating for over 20 years. Elynwood Services Group provides an extensive range of
specialised Catering, Cleaning and Associated Services to Retirement Village and Aged Care
Facilities.
At Elynwood Services we adopt a holistic approach and offer a tailored service that complies
with all client requirements.
Our business ethos has been to strive to achieve outstanding customer satisfaction. A focus
on improving the effectiveness and efficiency of our customer service delivery, is the prime
objective at Elynwood.
• Flexible but highly efficient and cost effective solutions for Catering,
Cleaning and Associated Services
• Convenient “one -stop shop” approach
• Food Safety Programs which are site specific supported by regular internal
and external audits
• Healthy and nutritious eating programs based on energy for life with well balanced menus
• Diverse menu range to cater for various cultures and dietary requirements
• Regular performance monitoring
• Marketing programs to increase awareness and participation
• A sustainable environmental approach
• Quality Assured Company
• Caring and highly trained Site Operators
• Available 7 days per week, 24 hours per day

For an obligation free quotation, please call

Jo Spiteri, Catering and Support Services Director
Tel: (03) 9364 8116 or 0419 189 471
Email: jo@elynwood.com.au
www.elynwood.com.au

Retirement Village Living.

A growing industry.

As baby boomers age and retire, many

opportunities are emerging for innovative
retirement village developments. Maddocks
understands the requirements and challenges
faced by developers in the retirement village
industry.

Our knowledge of the industry and the relevant

legislation enables us to actively assist
our clients in the acquisition, development,
operation and disposal of villages. We advise on
a range of issues including capital repairs and
compliance.

We have been involved in the consolidation

of the industry undertaking due diligence,
acquisitions, finance structuring and tax advice www.maddocks.com.au
on a number of transactions.
Maddocks Angel Place
140 William Street 123 Pitt Street
Melbourne VIC 3000 Sydney NSW 2000
Maddocks. Your lawyers for retirement, Tel 61 3 9288 0555 Tel 61 2 8223 4100
aged care and property development. Fax 61 3 9288 0666 Fax 61 2 9221 0872
RVA Yearbook 2009

Industry

Corporate Partners:
Supporting Research
SILVER – SPONSOR $10,000 BRONZE – SPONSOR $5000
(LIMITED TO 10 SPONSORS) (UNLIMITED)
Speaker opportunities RVA Events
• One speaker at an RVA Regional Conference of your • Complimentary invitation to all RVA ‘premium’ events e.g.
choice networking breakfasts and industry workshops (excluding
conferences and non-applicable events)
RVA Events
• Complimentary invitation to all RVA Regional
• Complimentary invitation to all RVA ‘premium’ events e.g.
Events/Professional Development Forums and smaller scale
networking breakfasts and industry workshops (excluding
events organised in specific regions (excluding conferences
conferences and non-applicable events)
and non-applicable events)
• Complimentary invitation to all RVA Regional
Events/Professional Development Forums and smaller scale RVA Advertising
events organised in specific regions (excluding conferences • A logo/profile in the RVA Associate Members Services
and non-applicable events) Directory
• A Listing in the RVA Associate Members Annual Services
RVA Advertising
Directory
• Quarter page advertising in the Supplier Handbook – The
• Company overview listing on Regional Industry Newsletter
RVA Associate Members Services Directory
• A profile in the Supplier Handbook RVA Yearbook
• A listing in the Supplier Handbook • Company Acknowledgement (Increased content)
• Company overview listing on Regional Industry Newsletter
National Conference
RVA Yearbook • One delegate ticket
• Company acknowledgement (Increased content) • Brochure/Document seat drop
National Conference Packages for the RVA website
• One delegate ticket • Base Listing (Name, Address, Number)
• Brochure/Document seat drop • Logo
• Website Link to your company site
Packages for the RVA website
• Listing plus 50 word profile linked to the soft copy of the
• Base Listing (Name, Address, Number)
RVA Associate Members Services Directory
• Logo
• Photo
• Website Link to your company site
• Listing plus 50 word profile linked to the soft copy of the Market intelligence
supplier handbook • Regular updates on research and advocacy issues
• Case study editorial on the website
• Photo
Market intelligence
• Regular updates on research and advocacy issues

22
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Now more than ever, design excellence is critical to sustaining your industry advantage

Campbell Luscombe Folk Lichtman Architects - both recognised and awarded - are the architects for Australia’s foremost
seniors & aged care facilities, including Waterbrook Yowie Bay, Annesley Bowral, Lifestyle Manor Bondi, Treeview Gardens,
John Paul Village
6\YZPNUPÄJHU[VWLYH[PVUHSRUV^SLKNLJVTTLYJPHSYLZWVUZPIPSP[`HUKKLZPNUZRPSSZJYLH[LÄUHUJPHSS`]PHISLV\[JVTLZ
with successful and thriving senior communities

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RVA Yearbook 2009

Industry

Corporate Partners

CORPORATE Colliers International Minter Ellison

Royal Exchange Lvl 12/225 George Street, Level 3 / 25 National Circuit, FORREST, ACT,
PARTNERS GROSVENOR PLACE, NSW, 2000 2603
Tel: 02 9257 0222 Tel: 02 6225 3211
Blake Dawson
Community Living Technologies Pty Ltd mhm - McLachlan Hodge Mitchell Pty Ltd
Locked Bag No 6 Grosvenor Place, SYDNEY,
PO Box 43, NORTH RYDE, NSW, 1670 121 Greenhill Road, UNLEY, SA, 5061
NSW, 2000
Tel: 02 9087 9562 Tel: 08 8291 0300
Tel: 02 9258 6058
Deacons National Seniors Australia
Jardine Lloyd Thompson Pty Ltd WA
GPO Box 4592, MELBOURNE, VIC, 3001 Level 7/243 Edward Street, BRISBANE, QLD,
Level 6 / 256 St George’s Tce, PERTH, WA,
Tel: 03 8686 6000 4000
6000
Tel: 07 3233 9183
Tel: 08 9426 0434 Deloitte Touche Tohmatsu
PO Box N250 Grosvenor Place, SYDNEY, NetComm Limited
Programmed Property Services
NSW, 1220 Unit 1 2 - 6 Orion Road, LANE COVE, NSW,
PO Box 331, MT WAVERLEY, VIC, 3149
Tel: 02 9322 7697 2066
Tel: 03 9544 5777
Tel: 02 9424 2045
Russell Kennedy Pty Ltd Doctors Safety Line Pty Ltd SA
PO BOX 738, TORRENSVILLE, SA, 5031 Nilsen Networks
PO Box 5146 AA, MELBOURNE, VIC, 3001
Tel: 08 8354 0155 4/ 3 - 5 Gilda Court, MULGRAVE, VIC, 3170
Tel: 03 9609 1555
Tel: 1300 734 766
Sanctuary Energy Ernst & Young Partnership
Level 27 / 8 Exhibition Street, MELBOURNE, PoolWerx
PO Box 3378, TUGGERAH, NSW, 2259 5 Moorak Street, TARINGA, QLD, 4068
VIC, 3000
Tel: 02 4351 5599 Tel: 07 3217 7111
Tel: 03 9288 8000
Thomson Adsett Architects PricewaterhouseCoopers
Forbo
PO Box 3348, SOUTH BRISBANE, QLD, 4104 2 Southbank Boulevard, SOUTHBANK, VIC,
Locked Bag 6886, WETHERILL PARK DC, NSW,
Tel: 07 3840 9999 3006
1851
Tel: 02 9828 0200 Tel: 03 8603 1000
NATIONAL Gadens Riley Shelley Australia Pty Ltd
ASSOCIATES L13 Skygarden Building/77 Castlereagh St, 395 Tooronga Road, HAWTHORN EAST, VIC,
SYDNEY, NSW, 2000 3123
Adelaide Bank Tel: 02 9931 4873 Tel: 03 8823 5055
6th Floor 24 York Street, SYDNEY, NSW, 2000 Savills Australia
ING Real Estate Community Living Fund
Tel: 02 8282 8285 Level 25/140 William Street, MELBOURNE,
Level 11 345 George Street, SYDNEY, NSW,
Allens Arthur Robinson 2000 VIC, 3000
PO Box 7082 Riverside Centre, BRISBANE, Tel: 02 9033 1019 Tel: 03 8686 8080
QLD, 4001 INS LifeGuard Showcase Publications
Tel: 07 3334 3209 P O Box 485, UNANDERRA, NSW, 2526 26 Belmore Street, SURRY HILLS, NSW, 2010
ANZ Banking Group Ltd Tel: 02 4254 6226 Tel: 02 9211 7422
Level 11 20 Martin Place, SYDNEY, NSW, 2000 InterfaceFLOR Sodexo Australia
Tel: 02 9227 1778 101 Chalmers Street, SURRY HILLS, NSW, Unit 1 / 469 Nudgee Road, HENDRA, QLD,
Atkinson Vinden 2010 4011
Level 8/10 Help Street, CHATSWOOD, NSW, Tel: 02 8332 2400 Tel: 07 3307 8000
2067 Knight Frank National Health and Aged Care The Senior
Tel: 02 9411 4466 GPO Box 146, BRISBANE, QLD, 4000 16A Mildon Road, TUGGERAH, NSW, 2259
BankWest Tel: 07 3246 8821 Tel: 02 4351 2366
Level 11 / 45 Clarence Street, SYDNEY, NSW, MacroPlan Australia Pty Ltd Thomson Playford Cutlers
2000 Level 4 / 356 Collins Street, MELBOURNE, VIC, Level 25/264 George Street, SYDNEY, NSW,
Tel: 02 8299 8285 3000 2000
Cavalier Bremworth Carpets Tel: 03 9600 0500 Tel: 02 8248 5800
165-169 Lower Gibbes Street, CHATSWOOD, McInnes Wilson Lawyers VIEO Clipsal Aged Care
NSW, 2067 GPO Box 1089, BRISBANE, QLD, 4000 153 Francis Road, WINGFIELD, SA, 5013
Tel: 02 9932 2600 Tel: 07 3231 0600 Tel: 08 8268 0425

24
 PROUDLY AUSTRALIAN OWNED FOR OVER 25 YEARS

• Nurse Call Systems

• Self-Care Monitoring
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• Out-Of-Bed / Chair Sensors
• Dementia Care
• Staff Duress Systems
• DECT Phone Systems
stems
• Security
From Nursing Homes to Retirement Villages we
have it covered, be it a building or the entire site. • Paging
Nurse Call Systems comply with
wireless

all necessary Aged Care Accreditation Standards. Contact us at:

We have the flexibility to tailor the system to
your changing needs.
info@vitalcare.com.au
Phone: 1300 669 888
•WIRELESS •
THE COST EFFECTIVE SOLUTION
RVA Yearbook 2009

Industry

Corporate Partners

Village Care Pty Ltd David Nelson & Partners JSA - Kennedy Associates Architects
Level 2 / 89 King William Street, ADELAIDE, Baulkham Hills Business Centre, BAULKHAM 51 Nelson Street, ANNANDALE, NSW, 2038
SA, 5000 HILLS, NSW, 2153 Tel: 02 9557 6466
Tel: 08 8212 0166 Tel: 02 9659 9611 Kells The Lawyers
Westpac Bank DEM (Aust) Pty Ltd Level 15 / 9 Castlereagh Street, SYDNEY, NSW,
Level 26 / 275 Kent Street, SYDNEY, NSW, P O Box 5036, WEST CHATSWOOD, NSW, 2000
2000 1515 Tel: 02 4221 9311
Tel: 02 8254 1129 Tel: 02 8966 6155 Masterton Homes Pty Ltd
Donald G Henderson Solicitor Cnr Hume Hwy & Sappho Rd, WARWICK
FARM, NSW, 2170
NSW/ACT REGIONAL PO Box 850, GOSFORD, NSW, 2250
Tel: 02 4324 5688 Tel: 1300 446 637
ASSOCIATES Dorsal Media Meli Studio
40 Heath Street, ALBURY, NSW, 2640 Suite 5b Kirribilli Marina 1 Bradley Avenue,
Amaranth Life Pty Ltd
Tel: 0412 233 742 KIRRIBILLI, NSW, 2061
Level 36 Aurora Place/88 Phillip Street, Tel: 02 8920 3500
SYDNEY, NSW, 2000 Downsizing With Ease
Tel: 02 9252 5595 Unit 3 47 Day Street, NORTH SILVERWATER, Metropolis Group of Companies
NSW, 2128 Suite 203/410 Elizabeth Street, SURRY HILLS,
Anglican Retirement Villages NSW, 2010
Tel: 02 9748 8033
284 Castle Hill Road, CASTLE HILL, NSW, Tel: 02 9212 1201
2154 Edmonds & Associates
Suite 2D 1 Gurrigal Street, MOSMAN, NSW, Paclib Senior Living
Tel: 02 9421 5356
2088 Suite 2 Level 4/65 Epping Road, NORTH RYDE,
Australian Retirement Partners Tel: 02 9960 8244 NSW, 2113
PO Box 315, MILSONS POINT, NSW, 1565 Tel: 02 9889 5777
Tel: 0412 411 325 Emil Ford & Co
580 George St, SYDNEY, NSW, 2000 Peter Dalton Architects Pty Ltd
Australian Unity Retirement Living Services Tel: 02 9267 9800 P O Box 6243, NORTH SYDNEY, NSW, 2060
NSW Tel: 02 9955 8244
Empowered Living Support Services Limited
Level 6/88 Phillip Street, SYDNEY, NSW, 2000 Retirement Headquarters
Po Box 3247, GLENDALE, NSW, 2285
Tel: 02 9256 8715 68 Tulloh Street, WILLOUGHBY, NSW, 2068
Tel: 02 4941 7070
Baldwin Oates and Tidbury Tel: 02 9958 2488
FPA Architects International P/L
P O Box 45, GORDON, NSW, 2072 Silver Spirit Partners
Suite 501 Level 5/225 Clarence Street, SYDNEY,
Tel: 02 9499 2166 Level 29 Chifley Tower 2 Chifley Square,
NSW, 2000
Campbell Luscombe Folk Lichtman Architects Tel: 02 9299 1001 SYDNEY, NSW, 2000
Tel: 02 9238 4204
P/L Fusion Financial Solutions (Syd) Pty Ltd
10 Charles Street, REDFERN, NSW, 2016 Skyline Landscape Services
PO Box 4213 Penrith Plaza, PENRITH, NSW,
Tel: 02 9310 4211 20 Anvil Road, SEVEN HILLS, NSW, 2164
2750 Tel: 02 9674 1400
Cater Care Australia Tel: 02 4722 6971
PO Box 69, PARRAMATTA, NSW, 2124 Smart Caller NSW Pty Ltd
Gilmore Interior Design U3/585 Maitland Rd, MAYFIELD WEST, NSW,
Tel: 02 9635 5188 9 / 37 Nicholson, EAST BALMAIN, NSW, 2041 2304
Catering Industries Pty Ltd Tel: 02 8585 9200 Tel: 02 4949 2222
P O Box 456, CHATSWOOD, NSW, 2057 Graphic by Design St George Bank Ltd
Tel: 02 9411 1144 PO Box 3295, ERINA, NSW, 2250 Locked Bag 1, KOGARAH, NSW, 1485
Catholic Healthcare Limited Tel: 02 4365 6777 Tel: 02 9708 5900
PO Box 858, EPPING, NSW, 1710 Herbert Partners Pty Ltd Stan Manning & Associates
Tel: 02 8876 2100 P O Box 250, TUGGERAH, NSW, 2259 18 Leighanne Crescent, ARUNDEL, QLD, 4214
CB Richard Ellis Tel: 02 4353 5855 Tel: 07 5519 1000
Level 26 / 363 George Street, SYDNEY, NSW, Hunt and Hunt The Frank Whiddon Masonic Homes
2000 GPO BOX 4132, SYDNEY, NSW, 2001 Locked Bag 14, MINTO DC, NSW, 2566
Tel: 02 9333 3383 Tel: 02 9391 3163 Tel: 02 9827 6634
Clayton Utz Jones Lang LaSalle NSW Third - Age Living Investment Managment
Level 8/40 Marcus Clarke Street, CANBERRA, PO Box 2500 Queen Victoria Building, Level 40 Chiffley Tower, 2 Chiffley Square,
ACT, 2600 SYDNEY, NSW, 1230 SYDNEY, NSW, 2000
Tel: 02 6279 4000 Tel: 02 9220 8423 Tel: 02 8005 5785

26
 Meli studio has been invloved in many
award winning developments, Waterbrook
Greenwich is one of our latest projects.
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Design solutions to meet

today’s seniors living needs
ThomsonAdsett understands, as you do, that retirement living developments are a ‘lifestyle’ choice in changing times. We know that lifestyle
retirement is for active people who want to enjoy their independence longer.
With over 30 years working with businesses like yours, we have the knowledge and the experience to provide the right solution for you and
for your clients.

Redmond Park

thomsonadsett.com
architecture | urban design | interiors
1300 304 290
RVA Yearbook 2009

Industry

Corporate Partners

TSA Management Munro Thompson Lawyers Villis Group

L16/207 Kent St, SYDNEY, NSW, 2000 Level 2/77 Mooloolaba Esplanade, 186B Pulteney Street, ADELAIDE, SA, 5000
Tel: 02 9247 7270 MOOLOOLABA, QLD, 4557 Tel: 08 8232 1145
Village Consulting Services Tel: 07 5444 3466 Vital Wireless Pty Ltd
P O Box 21, MOSMAN, NSW, 2088 Paynter Dixon Queensland Pty Ltd PO Box 314, LONSDALE, SA, 5160
Tel: 02 9969 0488 Level 3/299 Coronation Drive, MILTON, QLD, Tel: 08 8382 8866
Vision Lifestyle Projects 4064
Wallmans Lawyers
43 Gladesville Road, HUNTERS HILL, NSW, Tel: 07 3368 5500
GPO Box 1018, ADELAIDE, SA, 5001
2110 Propell National Valuers
Tel: 02 4353 6233 Tel: 08 8235 3000
PO Box 150, PADDINGTON, QLD, 4064
Vital Care Warehouse Matric
Tel: 07 3369 2277
PO Box 1484, LANE COVE, NSW, 1595 27 Gwy Terrace, BALAKLAVA, SA, 5461
Stan Manning & Associates Tel: 08 8862 2078
Tel: 02 9427 2133
18 Leighanne Crescent, ARUNDEL, QLD, 4214
Wise Products Tel: 0412 294 404
20 Dell Road, WEST GOSFORD, NSW, 2250
Westys Precise Pest Management
VIC/TAS REGIONAL
Tel: 02 4323 2233
33 Bershire Place, SPRINGFIELD LAKES, QLD, ASSOCIATES
Zadro Constructions 4300
Suite 4 / 16 Rob Place, VINEYARD, NSW, 2765 Tel: 07 3818 7227 APT (Australian Pacific Touring )
Tel: 02 4574 8000 475 Hampton Street, HAMPTON, VIC, 3188
Tel: 1800 630 339
SA/NT REGIONAL
QLD REGIONAL Baker and McKenzie
ASSOCIATES Level 19 /181 WIlliam Street, MELBOURNE,
ASSOCIATES VIC, 3000
Brand Partners
50 Plus Construction Pty Ltd Tel: 03 9617 4200
253 Flinders Street, ADELAIDE, SA, 5000
PO Box 3544, LOGANHOLME, QLD, 4129 Tel: 08 8232 8100 Blair Architects Pty Ltd
Tel: 07 3801 0100 9 Derby Road, CAULFIELD EAST, VIC, 3145
Earthwise Insulation Pty Ltd
CB Richard Ellis 16 Kincaid Avenue, NORTH PLYMPTON, SA Tel: 03 9569 2651
Level 33, Waterfront Place, 1 Eagle Street, 5037 Brico Living Pty Ltd
BRISBANE, QLD, 4000 Tel: 1300 166 282 101/325 Collins Street, MELBOURNE, VIC,
Tel: 07 3833 9819
Fisher Jeffries 3000
Focus Professional Group GPO Box 544, ADELAIDE, SA, 5001 Tel: 03 9629 9622
Level 5/57 The Esplanade, COTTON TREE,
Tel: 08 8233 0600 Bruce Mactier Building Designers
QLD, 4558
GB Plastics 100c Wyndham Street, SHEPPARTON, VIC,
Tel: 07 5479 2833
PO Box 44, BRIGHTON, SA, 5048 3630
Holman Webb Lawyers Brisbane Tel: 03 5822 1255
Tel: 08 8326 0044
GPO Box 99, BRISBANE, QLD, 4001
Tel: 07 3235 0100 Lynch Meyer Commercial Lawyers Burns Bridge Australia Pty Ltd
GPO Box 467, ADELAIDE, SA, 5001 Level 10/350 Queens Street, MELBOURNE,
Lewiac Pty Ltd
Tel: 08 8223 7600 VIC, 3000
Village Centre/The Sovereign Islands, GOLD
McInerney Barratt Financial Solutions Tel: 03 9691 0011
COAST, QLD, 4216
Tel: 07 5577 3255 134 Rose Terrace, WAYVILLE, SA, 5034 Caretakers Australia
Tel: 08 8272 1888 26 Cambridge Street, COLLINGWOOD, VIC,
LVO Architecture
14/220 Boundary Street, BRISBANE, QLD, O’Loughlins Lawyers 3066
4000 GPO Box 2410, ADELAIDE, SA, 5001 Tel: 03 9419 4399
Tel: 07 3832 2700 Tel: 08 8111 4000 Comms IT
McCullough Robertson Lawyers Optimum Retirement Services Unit 3 / 27 Bond Street, MORDIALLOC, VIC,
Level 11/Central Plaza Two/66 Eagle St, 5/259 Glen Osmond Road, FREWVILLE, SA, 3195
BRISBANE, QLD, 4000 5063 Tel: 03 8586 5333
Tel: 07 3233 8871 Tel: 08 8338 3344 Connect PM
Metropolitan Funerals PKF Accountants SA Level 2, 50 Queen Street, MELBOURNE, VIC,
GPO Box 665, BRISBANE, QLD, 4001 GPO Box 2505, ADELAIDE, SA, 5000 3000
Tel: 07 3013 0000 Tel: 08 7421 1400 Tel: 03 9686 4488

28
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RVA Yearbook 2009

Industry

Corporate Partners

Coomes Consulting Group Spectrum Analysis Australia Pty Ltd GV Lawyers Pty Ltd
2/24 Albert Road, SOUTH MELBOURNE, VIC, 101 Camberwell Road, EAST HAWTHORN, Level 5 / 16 Irwin Street, PERTH, WA, 6000
3205 VIC, 3123 Tel: 08 9325 6188
Tel: 03 9993 7888 Tel: 03 9882 6488 Higgins Coatings Pty Ltd
Erigo M.A.C Urban Maintenance Systems Unit 1 / 35 Guthrie Street, OSBORNE PARK,
PO BOX 2158, HAWTHORN, VIC, 3122 Level 1 /41 Miles Street, MULGRAVE, VIC, WA, 6017
Tel: 03 9818 2899 3170 Tel: 08 9263 1000
Herbert Geer Lawyers Tel: 03 9560 5811 Hotmix
Level 21/385 Bourke Street, MELBOURNE, VIC, Urban Neighbourhoods Box 446, Northbridge,WA. 6865
3000 PO Box 2039 Research Delivery Centre, Tel: 08 9227 5957
Tel: 03 9641 8615 RESEARCH, VIC, 3095 J H Wilberforce
Incolink Tel: 0409 070 997 33 - 43 Clune Street, BAYSWATER, WA, 6053
1 Pelham Street, CARLTON, VIC, 3053 Vicpole Pty Ltd Tel: 08 9340 6222
Tel: 03 9639 3000 31-35 Barry Street, BAYSWATER, VIC, 3153 Mal Atwell Indoor Leisure Group
Lewis Holdway Lawyers Tel: 03 8761 2703 34 Gympie Way, WILLETTON, WA, 6155
PO Box 138 Collins St West, MELBOURNE, Yellowstone Landscaping Tel: 08 9354 9150
VIC, 8007 PO Box 5047, STUDFIELD, VIC, 3152 Mickey Curran Painting Pty Ltd
Tel: 03 9629 9629 Tel: 0411 090 820 Unit 4 / 25 Tulloch Way, CANING VALE, WA,
Logreen 6155
7 Gilbert Road, WEST PRESTON, VIC, 3072
Tel: 1300 361 658
WA REGIONAL Tel: 08 9456 5710

ASSOCIATES Morley Davis Architects Pty Ltd

M3 Property 107 Cambridge Street, WEST LEEDERVILLE,
Level 5/114 William Street, MELBOURNE, VIC, Austronics Cable and Communications Pty WA, 6007
3000 Tel: 08 9388 7777
Ltd
Tel: 03 9605 1000
3aWelwyn Ave, Manning, WA, 6152 Northerly Group
Madgwicks Lawyers Tel: 08 9313 4163 Box 180, Subiaco, WA, 6904
Level 33 140 William Street, MELBOURNE, Tel: 08 9442 3899
Barton Consultancy
VIC, 3000
PO Box Y3584, PERTH, WA, 6832 Oldfield Knott
Tel: 03 9242 4744
Tel: 08 9225 5899 PO Box 849, SUBIACO, WA, 6904
McCabe Architects Tel: 08 9381 6788
Blue Force Pty Ltd
26 Peel Street, COLLINGWOOD, VIC, 3066
Tel: 03 9415 6377 PO Box 1292, OSBORNE PARK, WA, 6916 Pagett & Co
Tel: 08 9427 5555 P0 Box 5750, ALBANY, WA, 6332
Network Energy Services
Tel: 08 9841 4816
PO Box 2296, MOUNT WAVERLEY, VIC, 3149 Broadcast Engineering Services
Tel: 03 9807 5286 17 Millrose Drive, MALAGA, WA, 6090 Perrott Painting
Tel: 08 9243 7000 52 Edward Street, OSBORNE PARK, WA, 6017
Paulding Constructions Pty Ltd
Tel: 08 9444 1200
72-76 Dandenong Rd West, FRANKSTON, VIC, Designinc Perth Pty Ltd
3199 PO Box 8587, PERTH BC, WA, 6849 PKF Chartered Accountants WA
Tel: 03 9770 6666 Tel: 08 9322 3199 PO Box Z5066 St George’s Terrace, PERTH,
Egan National Valuers (WA) WA, 6831
Proactive Complaints Management
22 Hardy Street, SOUTH PERTH, WA, 6151 Tel: 08 9278 2222
9 Merrill Street, MULGRAVE, VIC, 3170
Tel: 0418 313 303 Tel: 08 9474 1299 Seniors Own Real Estate
Emerson Stewart Pty Ltd PO Box 642, BALCATTA, WA, 6914
Retireinvest - Mt Waverley
Old Swan Brewery/110/171 Mounts Bay Road, Tel: 08 9243 1366
Suite 1/427 Blackburn Road, MOUNT
WAVERLEY, VIC, 3149 PERTH, WA, 6000 T & Z Pty Ltd
Tel: 03 9886 1844 Tel: 08 9424 9555 679 Murray Street, WEST PERTH, WA, 6872
RSM Bird Cameron Fisher & Paykel WA Tel: 08 9481 0685
Level 8/525 Collins Street, MELBOURNE, VIC, PO Box 404, BENTLEY, WA, 6102 Village Estates Management
3000 Tel: 08 9356-4500 Suite 8/36 Ord Street, WEST PERTH, WA, 6005
Tel: 03 9286 1800 Grant Thornton Australia Ltd (WA) Tel: 08 9481 3244
Safety Link Level 1 / 10 Kings Park Road, WEST PERTH, Village Support P.I.R.
PO Box 179W, BALLARAT WEST, VIC, 3350 WA, 6005 83 Aitken Drive, WINTHROP, WA, 6150
Tel: 03 5320 5410 Tel: 08 9480 2000 Tel: 08 9310 9102

30
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The Retirement Village Association is the peak village regional and

national body. Associate Membership of the RVA is open to suppliers
who wish to be recognised as providing appropriate services, with RVA
Associate Member logo identification, print directory and web listings,
Associate Member plus exposure to events.

 
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^P[OWYVMLZZPVUHSZ\WWSPLYZ Only RVA Associate Members are listed in the
HUKZLY]PJLWYV]PKLYZ^OV directory. 2,000 copies are printed and mailed.
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As an RVA Associate >LI
Member your business
will be listed in the RVA The RVA has joined THE
Services Directory at no SOURCE Village & Care Directory,
charge. and [OLZV\YJL[VKH`JVTH\
website with an extended offer.
From just $400 you can June -\SS^LIWHNL^P[OSPURZ
Heinrich
also promote your business The Quiet
Achiever
(30,000 visits per month)
to all 1,850 villages across LEGAL - DIGITAL TV - MARKETING - PEOPLE - DIRECTORY (thesourcetoday.com.au)
Australia with a logo listing (X\HSP[`THNHaPULKPYLJ[VY`!
in our Services Directory. village & care sectors
Your business will be 4HPSLK[V_[PTLZH`LHY
identified by your region 19,500 circulation
of operation and your Logo Listing + 50 words ......... $572
Quarter Page ...........................$2,200

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LKP[PVU`V\^PSSH\[VTH[PJHSS`YLJLP]L[OLZHTLSPZ[PUNPUMYLLVMJOHYNL

CALL SUPPORT SYSTEMS - NATIONAL

)\PSK`V\YI\ZPULZZ^P[O[OL9=(
9LNPVUHS(ZZVJPH[L4LTILYZOPW..................................................................$990p.a. inc gst
5H[PVUHS(ZZVJPH[L4LTILYZOPW.............................................................. $2,970p.a. inc gst

9=(>LI 7YPU[+PYLJ[VY`
P: 1300 731 716 Full web listing with links (4,500 visits per month)
W: www.blueforce.com.au
A4 print directory mailed to 1,850 villages
Emergency Call Services
Blue Force specialises in the design,
build and ongoing servicing of emer- )HZL3PZ[PUN ...............................................................................................................................$Free
gency call and electronic security services
for the aged care and retirement villages Logo Listing + 50 words .......................................................................................... $400 inc gst
sectors. Our in-house ASIAL accredited Quarter Page ............................................................................................................... $550 inc gst
monitoring and support centre is one of
Australia’s largest and delivers specialist
assisted care, independent living, high THE SOURCE
care and dementia coverage.
Full web listing with links (30,000 visits per month)
A4 annual print directory mailed to 3,500 village &
Logo Listing care decision makers x 3 times a year - Logo Listing......................................$572 inc gst
Actual Size Quarter Page ............................................................................................................ $2,200 inc gst
 Mercy Place – Colac Mercy Place Rice Village Mercy Place Apartments – Parkville
83-99 Queen Street 2-26 Marshalltown Road 50-62 Cade Way
COLAC VIC 3250 MARSHALL VIC 3216 PARKVILLE VIC 3052
Mercy Health, building on the foundation and values of the Sisters of Mercy offer Retirement Living opportunities across
3 Victorian Sites; bringing to life a vibrant village feel offering a sense of safety, security and lifestyle. Our villages are
co-located with residential aged care facilities aiming to offer residents the concept of a continuing care community.
Mercy Place – Parkville is a new architecturally designed village offering a range of accommodation options and services in a
community setting, including:
• Mercy Place Apartments, spacious, high quality, 1, 2 and 3 bedroom retirement apartments
• A community hub including activity spaces, café, retail shops and allied health services
For further information contact:
Ms Helen Hunter - Retirement Living Housing Manager – Mercy Health
50-62 Cade Way, PARKVILLE VIC 3052
Tel: 03 9261 2008 Fax: 03 5241 9007 Email: hhunter@mercy.com.au Web: www.mercy health.com.au
RVA National Website - Members Web Packge
2009/2010
www.rva.com.au
Promote your product or service to retirement village operators
and residents through:

x Australia's number one retirement village web site

x The only national organisation solely focused on supporting

and promoting its members and retirement living

x A site that provides advice and assistance, products and

services to retirement villages and retirement village
residents

Take advantage of our members only special rate web package with
the additional benefits of profiling and listing in the RVA supplier
handbook to be distributed to over 2000 industry representatives.

WEB STATISTICS

In just three months,

over 1.5 million hits
over 26,500 unique
visits

A listing on the Retirement Village

Association Website will raise your company
profile within the industry.
 Retirement Living Solutions
With over 40 years experience in the Retirement
Living and Aged Care Industry Stan Manning &
Associates is available to provide you with
Consultancy Services.
Your specialists in relief management

and accreditation. Our Services Include:

• Site Assessment and Master Planning
• Feasibility and Market Studies
Village Management Policy Manual • DA Documentation including Support Services
Statements and Compatibility Criteria Reports
Village Support has developed exclusively a Village • Specialist planning input
Management start up Policy Manual consistent with the • Market Surveys, Community Aged Care Needs
Australian Retirement Village Accreditation Scheme and Research, Focus Groups
State Legislation. • Retirement Village Act Compliance including
Includes: Disclosure and Residency Documentation
x Village Management Policy Manual; • Operational/Management Advice, Organisational,
Management and Operational Reviews
x HR forms and documents;
• Marketing Strategies
x Selection of Operational Policies and Procedures;
• Aged and Community Care Place Applications,
x Registers and Resident Request Forms; including Extra Service and Approved Provider Status
x Half day training session and customisation of • Innovative Care Models: Flexi-Care, Supported Living
documents (valued $500);
x One year free maintenance and support for Manual Ph: 0412 294 404
stan@smassociates.info
(valued $800);
x All for $4,950 (ex GST).
Stan Manning
Contact Village Support to arrange an inspection of this & ASSOCIATES
essential Village Management tool, visit Specialist Retirement Living and Aged Care Consultants

www.villagesupport.com.au for more info. www.smassociates.info

Free: Base listing on the RVA Website : (name, address, telephone number)
Free: Listing in the RVA Associate Members’ Services Directory: (name, the nature of the
business, telephone number)

ASSOCIATE MEMBERS PROMOTIONAL PACK : $550 inclusive of GST

Your company logo included with your listing on the RVA website
A listing on the RVA website in one region of your choice
A link to your website and if you don’t have a website we can create a web page for you that is
hosted on the RVA site
A welcome and introduction to your company on the RVA News Monitor
Quarter page listing, a logo / photo and 80 words in the ‘The RVA Associate Members’ –
Services Directory

NATIONAL ASSOCIATE MEMBERS SPECIAL PROMOTIONAL PACK : $880

inclusive of GST
Your company logo included with your listing on the RVA website
A listing on the RVA website for all regions (5)
A link to your website from all regions
A welcome and introduction to your company on the RVA News Monitor
A case study/ editorial on the RVA website
A profile of a company founder, director, or employee
Quarter page listing, a logo / photo and 80 words in the ‘The RVA Associate Members’ –
Services Directory

To take advantage of one of these excellent value for money packages, please contact your RVA
Regional Manager or complete the request form below and return with your membership
application.

In addition to my membership application I wish to purchase a promotional pack.

Associate Members Promotional Pack at $550

Region (Please circle) SA/NT VIC/TAS NSW/ACT QLD WA

National Associate Members Promotional Pack at $880

PAYMENT

Cheque (Payable to the Retirement Village Association Ltd.)

Credit Card (Please provide details below) Visa Mastercard Bankcard

Card No: ……….. ………….. ………… ………….. Expiry ………………. Security No: …. …. ….

Name on Card:………………………………………………………………………..…………………………….

Signature: …………………………………………………………. TOTAL AMOUNT :……………………..

Please invoice to: Contact Name:……………………………………………………………………………….

Company:…………………………………………………………………………………………………………...

Address 1……………………………………………………………………………………………………………

Suburb………………………………………………………..Post Code: ……………………………………….

RVA Yearbook 2009
Industry
Village Charter and
Code of Conduct
Village Charter
As members of the Retirement Village Association Ltd, the
management of this retirement village has pledged to:
• Recognise and uphold the dignity of each resident.
• Respect the individuality, privacy, and beliefs of each and
every resident.
• Always act in a manner which recognises the rights of
residents.
• Provide the same level of care and consideration for each
and every resident without discrimination.
• Provide honest and detailed answers to questions, when
requested by a resident, concerning the welfare and quality
of life of that resident.
• Be mindful of the welfare and wellbeing of residents in all
matters concerning the administration of the village.
• Uphold the spirit and detail of retirement village legislation
and codes.
• Take all reasonable measures to achieve Accreditation and
on being achieved, to comply with the Accreditation
Standards and criteria published by the Association.
• Respect and comply with the Retirement Village
Association Ltd Member Code of Conduct.
Members’ Code Of Conduct
As a member of The Retirement Village Association Ltd, I
should:
• Conduct my business in accordance with the laws and
regulations of the State in which I operate.
• Compete fairly in the markets in which I operate.
• Work safely and apply industry best practice to the health,
safety and wellbeing of employees, residents, suppliers and
communities.
• Aim to bring long-term benefits to the industry, rather than
short-term advantage for individuals.
• Cooperate with the RVA to achieve its corporate goals.
• Show respect for the diverse range of people and cultures
with whom I work and for their human rights.
• Not be involved in corrupt practices, bribery,
discrimination or similar improper behaviour.
• Act ethically and with integrity, decency and respect for the
community and the environment.
37
RVA Manager of
the Year Award

2009
RVA Yearbook 2009

People

N
ow in its sixth year, the RVA Manager
of the Year Award (MOTY) has attracted
a record number of applications since
the award was first established in 2004.
Sponsored by Programmed Property Services,
the award recognises outstanding village
managers who have been nominated by their
residents, staff or owner operator.
RVA CEO Andrew Giles said the
competition for the Manager of the Year Award
was very strong and making a decision was
difficult for judges across Australia.
“In each state judging came down to the
wire and I think that has a lot to do with what
every year and this year the RVA received 13
more applications than in 2008. The increase in
interest is attributed to the work carried out by
RVA regional managers promoting the awards
and the incentives offered by sponsors.
The awards have always been a great way to
recognise the good work carried out by village
managers, but there were also some great prizes
on offer this year.
Regional winners receive some strong
promotions for their village and the national
winner receives a fantastic gold class trip on
The Ghan railway between Darwin and
Adelaide.

Manager Of The Year Award

everyone who enters this industry notices
immediately – the passion and enthusiasm that
the vast majority of village managers have for
their jobs, “ Mr Giles said.
Key evaluation criteria include leadership
style, continuous improvement initiatives, staff
development, resident satisfaction and village
innovation.
Interest in the MOTY is getting stronger
Candidates for the Manager of the Year
Award are nominated by village residents,
village operators and colleagues.
Once a manager is nominated they are
required to submit an application to be in the
running for an award. The RVA 2009 Manager
of the Year Award’s major sponsor is
Programmed Property Services and the media
sponsor is the Australian Senior.

RVA Manager Of The Year Award Winners

• Gareth Norman of Grange Retirement Estate, Salford Retirement Estate and Unity
Retirement Village is the Regional Winner for South Australia/Northern Territory (Salford
Living)
• Andrea Riviere of Blue Hills Village and Durham Green is the Regional Winner for
NSW/ACT (Tulich Family Communities)
• Peter Snell of AVEO Lindsay Gardens is the Regional Winner for Queensland (AVEO)
• Sue Loeliger of Waverley Country Club is the Regional Winner for VIC/TAS (Becton)
• Glenis Trumbich, Thomas Perrott Village and Margaret Hubery Village (Southern Cross
Care)

40
RVA Yearbook 2009

People

Gareth Norman 
Salford Living
The Grange Retirement Estate, Salford Retirement Estate & Unity Retirement Village

How did you become involved in the What do you find most rewarding about the
retirement village industry? job?
Prior to emigrating with my family in 2005, I There is not one thing that is more rewarding
could see that retirement villages were a major than the next or the last, but to see the residents
growth industry. I understood the dynamics of satisfied is reward in itself.
the ageing population and I thought I knew
Have the industry and your job changed over
what the aged population would want and
the years? If so how?
would expect during their retirement years and
I can’t say that I’ve been in the industry long
when I saw an opening, I jumped at the chance
enough to make a substantive comment on
to join the industry.
industry changes, but what I can comment on is
In what ways do you help build the community our village/s have changed, our residents have
at your village/s? changed and our own expectations have
My three villages are all different, even though changed… all for the better.
two of them are located within the same
What do you find most exciting about the
suburb. To build a community in the village/s it
industry?
was imperative that we understood our own
No two days are the same. As the manager, you
residents, their likes and dislikes. During our
are everything to everyone; you wear a
getting to know you sessions, it was evident that
multitude of hats and sometimes all at the same
a strong community already existed. Our team’s
time; you’re an accountant, architect, engineer,
drive and enthusiasm has resulted in bringing
nurse, mentor and counsellor just to name a
our community even closer.
few. This all adds to the excitement of the job. 
What have you learned from the residents at
your village?
Every day you learn something new and one
thing is for sure, our residents are happy to
teach you!

41
RVA Yearbook 2009
People
Andrea Riviere
BLUE HILLS AND DURHAM GREEN VILLAGE
How did you become involved in the
retirement village industry?
I was working in the building industry and
offered assistance to my neighbour Maurice
Tulich to have his first villa ready for
occupation.
It was a great opportunity to work in the
building of the village and also to forge
relationships with our new residents.
Village maintenance is a lot easier when
you have actually worked on the construction
and know a house from the inside out!
In what ways do you help build the community
at your village/s?
Blue Hills Village is unique in its strong sense of
community among our residents. From the
beginning, I have had the opportunity to
participate in all facets of village life from social
activities, teaching art and craft, bus trips,
resident birthdays and celebrations. We have
been in it together. There has never been a
‘them’ and ‘us’ attitude.
Our families have interacted with the
residents and their families throughout the
years.
I have followed Maurice’s vision where
retirement village management is based on
family values and upholding this has built a
‘community’ not just a place to live.
What have you learned from the residents at
your village?
Life is short, live every day to the fullest!
What do you find most rewarding about the
job?
Knowing that I can make a difference to
someone’s life.
It is amazing to see new residents move in
with nerves and trepidation, then within a
month they are excited about the social
activities, swept up in the fun, being included
in our community and wishing they had made
the move years ago.
42
Have the industry and your job changed over
the years? If so how?
The management style of retirement villages has
changed. We now work much closer with
residents.
Successful managers include their residents
in the process.
Apart from the residents committee, there
are now finance committees, social
committees, bar committees, house committees
and sales support.
Resident care is coming to the fore in
retirement villages with some operators offering
not only independent living, but community
aged care packages and co-located residential
aged care.
What do you find most exciting about the
industry?
The evolution of resident care options in
retirement villages.
The current RVA Accreditation scheme has
raised the bar and improved the reputation of
retirement villages. This, along with the
initiative to work more closely with the RVRA
(Retirement Villages Resident Association) and
an increased transparency by management is
seeing a move away from the ‘crooked
operator’ attitude and improved relations in
villages.
The new building designs of retirement
village residences and village community
facilities.
Any other points you’d like to make?
We found the accreditation process extremely
beneficial and would encourage retirement
village operators and managers to move toward
accreditation under the RVA scheme.
It is a great way of showing your residents
and prospective residents that you are meeting
high standards in the operation of your village.
 Bectonn creates and manages grea
great
at places to live. For three dedecades
ecades we have been desig
designing,
ning,
buildin
ng and managing places that
building thaat feel like home the moment
momeent you walk in the door.
doorr.
Throughout
Througghout Australia, Becton hass created places where the stunning design, architecture
architectu ure
and cra
craftsmanship
aftsmanship are only a small
smaall part of the total offer.
offerr. Places soft
Pllaces that hum with the soft
buzz off people enjoying the good life. Places where they cann enjoy an over 55’s55’s lifestyl
le,
lifestyle,
enricheed by the companionship of
enriched o like minded people. Places
Placees where people are free to
exploree new interests and adventures
adventtures if and how they chose.
chosee.

Classic Re
Residences,
sidences, Brighton VIC t 03
3 9599 2300
Classic Resid
Residences
dences Brighton has a strong sesense
nse of community and fun with lifestyle,
freedom andd flexibility afforded by a strong sense of security
security.. Classic Reside
Residences
ences
hhas
as sserviced
erviced apartments
apartments starting
starting ffrom
rom aapprox
pprox $235,000 aand
$235,000 nd iindependent
ndependent aapartments
partments
m $320,000.
starting from
Menzies, Malvern
M VIC t 03 9500 9297
929
97
Menzies is aan exclusive residential development
developm ment for those seeking independ
independence,
dence,
security andd a truly luxurious lifestyle. Every
Everything
ything has been thoughtfully de
designed
signed
with spacious,
i us, creative
ith spaciou ti areas for
f a refined
fi d lelevel
levell off living.
li i Menzies i l d lluxury
M i includes uxury
5 star accommmodations and facilities.
accommodations
Waverley
Waverley Country Club,
Club, Rowville VIC
C t 03 9755 8542
As soon as yyou drive through the gates you experience a thoughtfully plann
planned
ned
retirement eenvironment designed for peoplee who want to live active and fu ull lives.
full
Resident’ss enjoy
Resident’ enjoy the security of a gated com
community
mmunity and a commitment to sservice the
whole time they live here. 2 and 3 bedroom m Villas start from approx $365,0
000.
$365,000.
Dee Why Gardens,
G Dee Why NSW t 11800
800 1155
55 1171
71
Imagine a pplace
Imagine lace of
of iinviting
nviting bbeauty,
eauty, w where
here luscious
luscious green
green llawns,
awns, fl flowering
owering ggardens
ardens
t t l ttrees surroundd you. A place
andd stately l whe where
here the
th living
li i isi always
l easy,, whe
easy where
here home
h
rreally
eally iiss yyour
our hhaven
aven and
and hhelp
elp iiss rright
ight tthere
here w
when
hen yyou
ou nneed
eed iit.
t. SServiced
erviced aapartments
partments
start from $ $170,000
$170,000 and independent apart apartments
tments from $37
$370,000.
0,000.
The Woniora,
Wonioora, Wahroonga
Wahroonga NSW t 002
2 9489 4924
Apartments for distinguished retirement living.
living. Stylish design and beautiful surroundings
s
make The W Woniora community.
oniora a unique retirement com mmunity. Choose from two, threee and four
bedroom apartments
apartments all with contemporary design features. Enjoy the first class
c facilities
or relax knowing
wing that staff are on hand around
know arouund the clock. Starting from appox
appoox $745,000.
Breezes Mackay
M QLD t 007
7 4968 0222
02222
Breezes Mackay
B Mac
M ckay
k offers
ff resort-style
l living
li i amidst
ammidst
id the
h welcoming
l i setting
i off beautiful
be
beautiful
if l North
N h
Queensland.. Breezes Mackay is convenient to t stunning beaches, the magical
magical Whitsundays,
tropical rain
nforests and a world class marina
rainforests a. Breezes Mackay has 2 and 3 bbedroom
marina.
apartments starting from approx $235,000 and villas starting from approx $345,000.
Woodstock
Woodstocck West,
West, Bunbury WA
WA t 08 9791
9791 66199
199
Woodstock W
Woodstock West
est in Bunbury is located in a superb location across from thee Bunbury
Forum Shopping
Shopping Centre and close to public transport,
t town and beaches. The The community
centre is thee hub of the village life and cont
contains
tains a range of facilities for res
residences
idences to
enjoy
y. Bunbu
enjoy. ury offers 2 and 3 bedroom villa
Bunbury as, with 2 bedrooms from $330,0
villas, 000.
$330,000.

*Price correct att September 2008

www.becton.com.au
www.becto
on.com.au
RVA Yearbook 2009
People
Peter Snell
AVEO LINDSAY GARDENS
How did you become involved in the
retirement village industry?
I was a paramedic for 17 years with the
Queensland Ambulance Service (QAS)
and it was during my time as a working
member of the management team I
became exposed to retirement villages
and the independent living lifestyles. The
aged care industry was entering a new
era and I was keen to become involved
and be an integral member of the
management team within the village
lifestyle.
In what ways do you help build the
community at your village?
I thrive on challenges and I strive to
endorse a strong, positive leadership
team. I promote high work ethics and
work diligently to ensure resident needs
are met and services provided to the
residents are approved and managed by
appropriate qualified agencies. With
open communication and availability
being a critical foundation to the
building of a happy and secure living
environment for residents, I aim to
support my residents and their family
members positively. As a village manager
it is a privilege to promote, protect and
preserve the independent living lifestyle
for residents at my village and I am
honoured to have in some way
contributed to their quality of life and
care whilst residing in the village
environment.
What have you learnt from the residents
at your village?
Residents have taught me open-
mindedness and I am proud to welcome
new residents to the village lifestyle, and
for many it is the first time they have
lived outside their family home. I have
learnt that approach is a major player in
the settling of a resident’s new life.
Residents have a wealth of knowledge
44
and each individual has their own life budgeting programs giving us access to
story to tell, which in itself is interesting. highly professional presentations. The
It is refreshing to see new residents workload and demands on the manager
excited when entering a new phase in have increased substantially due to the
their life and to join into the activities at growth and changes within the industry.
the village. I have observed that many
What do you find most exciting about
have new, fresh and varied ideas which
the industry?
bring the resident community together
The media reminds us that we have an
and others work tirelessly in the support
aging population and it is gratifying to be
and care they render to their newly
part of this thriving industry. I can see an
formed friendships. My residents have
era of great opportunity for residents and
taught me the finer points of positive
management in the independent living
negotiation and problem solving and I
lifestyle in retirement villages. The
must say constructive outcomes are very
resident community is excellent for
rewarding.
seniors to embrace as it offers friendship
What do you find most rewarding about and support while still living and
the job? retaining full independence. The market
I came from a highly professional competition makes the industry exciting
working environment where career and challenging with the standards in
development was encouraged and service delivery and saleable products
keeping currency in training programs currently at an all time high.
vital. It was on this basis when I became
manager of my village that I sourced
funding to gain suitable training
endorsed by the government to
adequately train and accredit my staff.
This training not only was good
grounding for my staff but gave my
residents confidence in knowing my
team are all qualified and trained in the
services provided. It has been rewarding
to me as manager to know that my
meticulousness has ensured all staff
members at the village are accredited
and fully trained.
Have the industry and the job changed
over the years and if so, how?
Since I became a village manager, I have
witnessed first hand the rampant growth
and advancement with this industry.
Competition of the saleable product has
grown considerably along with many
changes to government legislation, local
policies and procedures. Technology and
programs available have enhanced
RetirementVillage
AgedCare
LendingSpecialists
and

Bendigo and Adelaide Bank’s Retirement Village and Aged Care Unit is a major lender
to the Retirement Village and Aged Care industry and has a strong commitment to
funding the industry over the long term. Our people are dedicated to funding this
sector, representing it as their core focus, specialisation and passion.

A detailed understanding of the industry and the regulatory framework within which
it operates means we can talk the industry language and appreciate the processes
that come with being an operator. This assists in overcoming the barriers that may be
experienced with other financiers.

Bendigo and Adelaide Bank provides finance for start-up developments, as well as
established facilities. And we strive to add value in all our dealings with clients based
on our extensive experience in the Retirement Village and Aged Care industry.

Are you wondering how we developed our specialisation? Paul Sullivan

QLD/NSW/ACT
We have been active participants in this sector since 1985. The bank, through
Phone 02 8282 8285
a previous subsidiary Co-operative Retirement Services (CRS), was a pioneering
Mobile 0408 859 800
operator in the retirement village industry.
Email psullivan@adelaidebank.com.au
At its peak, the bank as an operator owned 14 and operated 45 retirement
villages throughout Australia. Through another subsidiary, Co-operative Retirement Robert Herbert
Services of America (CRSA), the bank was one of the largest retirement community VIC/TAS
Phone 03 5485 6612
consultants in the USA.
Mobile 0427 562 031
The bank, through its subsidiary CRS, assisted in the development of retirement Email robert.herbert@bendigobank.com.au
village legislation in both South Australia and Queensland, contributed to South
Australia’s 10 year plan for the elderly, participated in consultations with the Peter Maddigan
Commonwealth Government on industry taxation issues, and sponsored the Council WA
on the Ageing. Phone 08 8300 6306
Mobile 0488 176 379
Whilst no longer an operator, the bank maintains a substantial lending business Email pmaddigan@adelaidebank.com.au
to the Retirement Village and Aged Care sectors on the basis of its extensive
industry involvement and knowledge. We also retain membership of key industry Graham Hackett
representative bodies. SA/NT
Phone 08 8300 6048
Listed right are the specialist Managers in your state. Their support staff are also Mobile 0438 800 858
dedicated to this unit for your assistance. Email ghackett@adelaidebank.com.au

Bendigo and Adelaide Bank Limited, The Bendigo Centre, Bendigo, VIC 3550.
ABN 11 068 049 178. AFSL 237879. (S24642) (07/09)
RVA Yearbook 2009

People

Sue Loeliger
CLASSIC RESIDENCES BRIGHTON, WAVERLEY COUNTRY CLUB AND
PREVIOUSLY MENZIES MALVERN*

How did you become involved in the have learnt how to pick up lost stitches in my
retirement village industry? knitting and how to (try to) keep my lawn bowl
I had always lived with three generations in our from straying into the next lane.
home. First, with my grandmother living with
What do you find most rewarding about the
my mum and dad, brother and I, and later in
job?
our own home with my sons having my
There is not a day when you go to work when
husband’s mother living with us. Applying for a
you can be sure of what it is you will be doing.
position with a new evolving retirement village
Work is never boring. One day you may be
felt just right. Having a bit of a technical bent I
down on your knees in a communications
studied computer science but loved being with
cabinet trying to work out why at 4.55pm on a
the older generation and working with Becton
Friday night the residents’ internet is not
to open its first village was the perfect
working and on another day you can be sharing
combination of new technologies and older
in a great grandchild’s birthday party. Another
people.
day you will be working on the business plan
In what ways do you help build the community for the next year and the next arranging a bus
at your village/s? trip to a winery in the Yarra valley. Where else
As I have been at the villages since their can you get such diversity?
conception I have had the opportunity to spend
Have the industry and your job changed over
the time to find out the needs and desires of the
the years? If so how?
residents who were moving in. As the villages
In line with the economy I feel that I need to
increased in size, introducing activities and
strive harder than ever to ensure that every cent
functions that suited the type of resident who
we spend on behalf of the residents and of the
moved in ensured that the residents were
owner company are spent wisely. You must
comfortable in mixing with the community.
research every option when making budget
Making yourself available to everyone is the
decisions while ensuring that quality is not
best way to ensure that you understand the
compromised. Residents who are moving into
mood of the village and work towards building
our villages are looking for greater value for
the style of community they desire.
money in their every day lives and I feel that
What have you learned from the residents at this has made the job more challenging than
your village? ever.
Over the years I have learnt so much about I feel very lucky to work in a position where
village life. From little things about the way a I can enjoy the company of so many wonderful
unit should be built – lower peep holes in people, both residents and staff, and hopefully
doors, higher toilet seats, no steps at front contribute to making their lives in our villages a
doors, kitchen shelves that you can get to with fulfilling place to work and live.
reaching up too high or bending too low – to
*Sue won Manager of the Year Award when she
the optimal temperature of the swimming pool
was the village manager at Waverley Country
so that muscles relax and allow a newly
Club.
replaced hip to be exercised. I have learnt
about the importance of community spirit as
you grow older and face the challenges of an
ageing body or mind. I have learnt a lot about
the lives that have been different to my own
and in some cases harder and more challenging
and in others more adventurous and exciting. I

46
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RVA Yearbook 2009
People
Glenis Trumbich
MARGARET HUBERY VILLAGE AND THOMAS PERROTT VILLAGE WA
How did you become involved in the
retirement village industry?
My involvement in the retirement village
industry was quite accidental. I had left my
previous employment as a flight attendant
with Ansett WA to have my second child
and when she was old enough to start
kindergarten I wished to take the
opportunity to return to the workforce on a
part time basis. My mother referred me to
Southern Cross Care (SCC) where she was
employed at one of their low care facilities,
Joseph Cooke Hostel. I went for an
interview and took up a position as a carer
on a part time basis. This grew to where I
was offered an administrative position and
eventually to what was a ‘newly created’
position as co-ordinator for Thomas Perrott
Village.
I feel that one of the most important
aspects of my work is to work towards
enhancing the community spirit of the
village and I am confident that this is a
happy community environment. I work
towards helping to achieve this through
constant and open communication with all
residents and working as closely as
possible with the residents’ committee with
whom I have a great rapport. I organise
monthly talks for residents with guest
speakers on a variety of topics which I
endeavour to make interesting, informative,
educational and fun. We always join
together for morning tea at these events
which I provide and in which I participate.
I provide a monthly newsletter in which
residents can have input with items of
interest to themselves and others and it has
a ‘for sale’ or ‘giveaway’ section where
they can sell or give away goods. There are
groups for exercises to music and evening
bingo which are fun. Southern Cross Care
has provided a Nintendo Wii which has
been a great source of entertainment and
learning. I encourage bus outings and
constantly supply the committee with ideas
for outings and entertainment. SCC have
initiated an Inter-Site Ladies or Mens Day
where our villages can be the host for a
days socialising – these days are proving to
be very popular and the host village gets to
show off their village and facilities. We
have groups of ladies who provide hand-
made knitted blankets for the St Vincent de
Paul organisation to help the needy and
monies raised from their Ladies Day also
goes to charity. I encourage them to
participate in events provided by Joseph
Cooke House and have interaction
between village residents and hostel
residents. All these things go towards a
happy village environment where residents
have the opportunity to contribute and
participate in various aspects of village life.
What have you learned from the residents
at your village?
The residents have taught me that
retirement is an exciting time, not a step
towards the end of life but a new adventure
into a different part of life’s journey, that I
can look forward with great anticipation to
the time when I too can retire. They have
also shown me that there are many
avenues of support in the community
where we can all do our bit on a voluntary
basis to help someone else.
What do you find most rewarding about
the job?
The people are the most rewarding aspect
of my job. I do also have great satisfaction
from the property side of things, in
organising building and renovation works
etc, but definitely it is the people who keep
me working. I have recently experienced
the sad loss of my father and have been
warmed and comforted by the love and
support of my residents. They have become
part of my extended family over the past
ten years and are a huge part of my life.
They constantly express genuine concern
and interest in me as a person and this is
something that we all need. I hope that I
am able to return some of that to them.
Have the industry and your job changed
over the years? If so how?
I feel that the industry has changed
tremendously since my job commenced.
Back ten years ago there were only
minimal guidelines and support services.
These days thanks largely to organisations
such as the RVA there is ongoing education
and support. Life is much more fast-paced.
Residents are looking for information and
support. We are able to provide in-home
care and community support, which are all
invaluable tools. Accreditation has been a
wonderful innovation over recent years
and I am very proud of the fact that as an
industry we have taken onboard these
regulations and guidelines on a voluntary
basis.
I think this is an exciting industry to be
involved in. The area of retirement and
aged care is a fast growing area. Services
are ever expanding and demand and
expectation have changed tremendously
over the years. I feel that the industry now
presents itself as a life choice. The public
now embrace retirement and ageing in a
much more positive light than ever before
and I expect that this will continue.
What do you find most exciting about the
industry?
I feel privileged to be associated with this
industry and in particular the MOTY
awards. Since receiving my award I have
been surprised at the feeling of credibility
that it has given me. It has made me feel
even more valued as a worker within my
own organisation and within the industry
generally. I would be happy to encourage
anyone within the retirement village
manager group to go forward and allow
them to be nominated for this award. It has
been most rewarding and enjoyable.
49
Accessing
your super.

You can withdraw all or part of your superannuation once you You don’t have to cash out your super. Instead, you can convert it

have reached your preservation age* (55 - 60 years depending on when to an account-based pension (otherwise known as an allocated pension),

you were born) and have permanently retired. However, it is not which can be very tax effective. Performance returns are tax free, and you

compulsory to withdraw your super when you retire, and if you are pay no tax on any income or withdrawals once you reach age 60**.

under 60 it may be beneficial to leave it where it is. This is because Account-based pensions are also very tax effective for people aged 55

benefits paid from super, either lump sums or pensions, are tax-free and under 60, as they will qualify for a 15% tax rebate on any pension

once you reach 60 years of age**. income received (conditions apply for those under age 55)**.

If you make a withdrawal prior to age 60, you may have to pay Sam Wall, Executive Manager,
16.5% tax on some of it. However, you are allowed a tax-free threshold Technical Services, Colonial First State

of $150,000 (2009 - 10 year)**, and some of your super may be tax-free

(for example after-tax contributions you have made). Your financial

planner will help you work out the figures.

Important information: *Different retirement conditions apply from age 60. **Does not apply to untaxed super schemes such as public sector super schemes. This information is
general information and advice only, current as at 26 June 2009. It does not take into account any person’s individual objectives, financial situation or needs. Colonial First State
Investments Limited ABN 98 002 348 352 AFSL 232468 is the issuer of superannuation and investment products. Product Disclosure Statements (PDS) for these products are available
from Colonial First State. Investors should consider whether the information provided is appropriate for them and the relevant PDS and consider talking to a financial adviser before
making an investment decision. CBACM1122_LHS
Meet with
a financial
planner.
No interpreter
necessary.
We clear the path to retirement by putting it in terms you can understand.
Your local Commonwealth Financial Planner can help you determine
your goals for retirement and work with you to develop a strategy
to help you get there.

Call 1800 007 929 between 8:30am and 5:00pm AEST or

visit commbank.com.au/retirement and book
your appointment today.

Important information: Commonwealth Financial Planners are representatives of Commonwealth Financial Planning Limited.
ABN 65 003 900 169 AFSL 231139, a wholly owned but non-guaranteed subsidiary of Commonwealth Bank of Australia
ABN 48 123 123 124. CBACM1122_RHS
 Age matters.
Commercial. Legal. Political. Regulatory.
Aged care and retirement village matters.

The response to Australia’s ageing
population is not merely a property
play to entice the sophisticated baby
boomer generation to a new abode.
Fundamentally, it is a dialogue between
governments and providers on how to
deal with one of the great demographic
shifts in human history.
Gadens Lawyers can assist you with understanding and participating in this dialogue.
We have developed a highly experienced aged care and retirement village team who
deal with the everyday issues that those in the aged care and retirement village sector
need to consider.
We have established strong contacts in this sector, having advised some of the pioneers
LQERWKWKHQRWIRUSUR¿WDQGSULYDWHVHFWRU2SHUDWRUVDQGSURYLGHUVLQWKHQXUVLQJKRPH
and retirement village industries recognise members of our aged care and retirement
village group as experts. We work closely with major industry associations to provide
ongoing advice and education to add to this continuing discussion.

Contact Arthur Koumoukelis, Partner

E akoumoukelis@nsw.gadens.com.au
T‡gadens.com.au
RVA Yearbook 2009
People
NSW/ACT Regional Report
New legislation in NSW and the ACT, record numbers for
sponsorship and delegates at the Regional Conference along
with the loss of a true gentleman and pioneer of the retirement
village industry in Tony Baldwin headlined a year which saw
professionalism grow in the RVA as it consolidated its position
as the peak industry body.
New events such as the MacroPlan/Gadens seminar, CBRE
Breakfast, National Board Cocktail Party and Blake Dawson
Industry Luncheon showcased a new look and new standard
events program from the RVA.
The last 12 months have seen consolidation and growth in
NSW and the ACT with the RVA strengthening its position as
the peak industry body for retirement villages. We were able to
demonstrate to government the need for a viable retirement
village industry in NSW which helped achieve significant
amendments to the Retirement Villages Amendment Act Bill.
We have forged strong alliances with organisations such as
the Urban Development Institute of Australia and will work
with them over the upcoming year to establish a cooperative
and coordinated approach between the UDIA NSW Seniors
Living Committee and the RVA Planning and Development
Committee. We will do this through collaboration on
submissions and advocacy pertaining to the regulative and
legislative framework affecting seniors living and retirement
village development in NSW and on other matters as they arise
that encourage development in seniors living and retirement
villages.
Through the negotiations of the Retirement Villages
Amendment Act Bill we have been able to commence and
develop a relationship with the NSW Residents Association
which continues to strengthen with every meeting. The strength
of this relationship I am sure is set to be tested in the upcoming
weeks and months as we push forward with negotiations in
relation to the Regulations accompanying the Act.
53
RVA Yearbook 2009

People

NSW/ACT Regional Report

Membership and Accreditation
Our Membership at 30 June stood at 126 Village Members, 45
Regional Associates and 7 Industry Members. The next 12
months will see a significant push into the Not-for-Profit sector
as we aim to have in excess of 150 village members in the
region.
With the launch of the Industry Supplier Directory we are
set to see an increase in Associate Membership which will in
turn lower the burden and reliance on Village Membership.
Associate members (eg architects, lawyers, builders,
electricians, painters etc) will be featured in this directory
which will also be a great ready reference for member villages
and an added benefit for Associate Members.
Accreditation numbers have also increased in the last 12
months with the continuation of half day seminars to inform
operators how to prepare for accreditation. 31 villages became
accredited in 2008/09 which increases the total number of
accredited villages in the region to 59. We now have 47% of
member villages in NSW/ACT accredited. This course will
continue next year in order for villages to take advantage of
this extremely beneficial marketing and management tool and
keep a high level of service and credibility throughout the
industry.
Conferences/Seminars/Managers Meetings
Crowne Plaza Hunter Valley was descended upon for a second
year running for this year’s Bank West NSW/ACT Regional

You’ll love Blue Hills Village.

You’ll love our community even more.

The residents love living in Blue Hills, a contemporary lifestyle village

for the over 55s. Yet, it’s the friendly atmosphere, the continuum of
care and the sense of community that makes living here enjoyable.
Blue Hills Village 25-27 Tulich Avenue Prestons 2170
Call (02) 8784 2400 www.bluehillsvillage.com.au A Tulich Family Communities Project

54
RVA Yearbook 2009

People

NSW/ACT Regional Report

Conference. A welcome cocktail party on the Thursday evening
gave everybody an opportunity to unwind and catch up in a
relaxed atmosphere.
The Conference kicked off on Friday with the largest
number of delegates ever in attendance for a NSW/ACT
Regional Conference. Over 140 people were brought up to
date with the GFC and its impact on the industry, effective
management practices, how to work together with residents,
key sales and marketing tips and how to effectively deal with
the media. The day was brought to a close with a rollercoaster
ride of emotion as John Anderson, the founder of Contiki
Holidays talked about turning passion into business.
The Professional Development Program has seen our
Managers Forums go across NSW and ACT including Port
Macquarie, Central Coast, Sydney, Berry, Canberra and Wagga
Wagga, with over 90 different managers attending throughout
the year. This will extend in the next 12 months out to Tweed
Heads and Albury as we establish cross border meetings with
Victoria and Queensland to help build the network of
managers in those regions. We thank Programmed Property
Services for their continued support and sponsorship in making
these events free for managers.
The Managers Meetings have been a great way to stay up to
date with relevant topics and a tremendous opportunity for
managers to network. A huge thank you goes to all member
participants and Associate Members who contribute to the
meetings. Special mention must go to Arthur Koumoukelis and
his team from Gadens and Guy Vinden and his staff from

Durham Green Village. A community

that really cares about people.

Durham Green is a retirement community where the friendly atmosphere ensures

our residents feel safe and secure. We offer both independent living and a continuum
of care with our Extra Services Aged Care Facility, The Manor at Durham Green.
Durham Green Village 153 Menangle Road Menangle NSW 2568
Freecall 1800 469 838 www.durhamgreen.com.au
A Tulich Family Communities Project

55
Seniors Housing Management, Marketing and Valuation

Over 40 years experience in the industry. Operator of 2 villages comprising

288 self care units and serviced apartments. Qualifications and experience in
strata management; valuation and marketing of villages, village sites and
retirement units; consultants to the industry providing staff selection,
procedural development, documentation and feasibility analysis.
Members of Retirement Villages Association, Australian Property Institute,
Real Estate Institute of NSW and Australian Society of Certified Practicing
Accountants.
Consultancy services from an experienced team offering timely service at a
reasonable cost.

Edmonds & Associates

Suite 2D, 1 Gurrigal Street, Mosman NSW 2088
Tel (02) 9960 8244 - Fax (02) 9960 8255 - Mobile 0418 251 836
Email: philip@edmonds-associates.com.au Web: www.edmonds-associates.com.au
RVA Yearbook 2009

People

NSW/ACT Regional Report

Atkinson Vinden who continue to

provide speakers, advice and
assistance for our Managers
Meetings and industry events free
of charge. With the support of
members like these it greatly
assists the benefits and services
the RVA is able to provide.
Our New Investment Frontier
forums held in conjunction with
MacroPlan Australia and Gadens
saw almost 100 people gather in
Sydney for a forum that provided
invaluable insight into the
industry’s vital role in providing
senior housing, the economic
benefits, social impacts, optimum
locations, market trends, current
and future pricing, expected
growth and investment
opportunities.
Further to this we were able
to team up with CBRE to deliver a
breakfast seminar that provided real solutions and up to date brought up to date with all issues affecting the industry.
advice on buying and selling villages, maximising valuations, A regular newsletter for the NSW/ACT Region has allowed
obtaining finance and improving project economics. This event for regular information to be distributed to members with
was sold out. stories that are NSW/ACT specific. These newsletters have
In conjunction with Blake Dawson and Deloitte a round provided valuable information to members and will continue
table industry lunch was put together to give insight and to give members up to date information on issues affecting the
discussion on issues facing mid-sized operators. This innovative industry.
new format, which contained team leaders at each table, Legislation and Government Relations
enabled the thoughts of all participants to be aired when the
In the ACT there has been a proposal put forward to review the
room discussed the topics together.
current legislation. Over the upcoming year we will assist the
All seminars and conferences would not be possible
ACT Government in its review of the Retirement Villages
without the support of all of our sponsors. We thank all the
Industry Code of Practice (1999) with the view to enacting a
sponsors who have contributed over the past year and look
Retirement Villages Act that will strengthen operations in the
forward to working with all of our existing sponsors and new
ACT and give greater power to operators under legislation and
sponsors in the upcoming year. In times of financial
thereby support positive ageing.
uncertainty NSW/ACT was able to attain an extremely high
In NSW we will be increasing our relationship with
level of sponsorship from a broad range of occupations which
government.
is a great reflection on the state of the industry in NSW/ACT at
We will hold a Village Open Day where elected local, state
the moment and what the industry means to our valued
and federal members are invited to member villages to meet
associate member sponsors.
operators and residents. This will provide an excellent
Communications opportunity to explain the benefits of retirement villages and
Our communication has increased with members now being showcase how important villages are to communities.

57
 Your Care | Our Passion

Baptist Community Services (BCS)

BCS has 11 retirement villages spread across NSW and the
ACT, all with their own unique features, yet all marked by our
commitment to providing residents with a friendly, caring, safe
and secure environment in which to enjoy their retirement years.
Sydney Blue Mountains Canberra Central Coast Griffith Goulburn
Call us now to speak with one of our friendly staff 1300 ASK BCS (1300 275 227)
www.bcs.org.au Baptist Community Services - NSW & ACT

Zadro Constructions has a specialised Aged Care and

Retirement Living Division with experience in Aged Care
Facilities, Independent Living Units, Community Centres,
including Refurbishment and Maintenance. Since 2005 we
have constructed and delivered over 700 Nursing Home
Beds and completed 27 Retirement Village projects since
2002. Zadro Constructions has been in the building
construction industry for more than 48, we have completed
in excess of 170 retirement and specialised aged care
projects. Zadro is one of the largest providers of Retirement
Atkinson Vinden have been in practice in Chatswood for Living and Specialised Aged Care facilities in NSW.
over 30 years and are one of NSW leading law firms in
providing expert advice in the health and aged care area.
They practice extensively in the areas of retirement
villages and nursing homes. Atkinson Vinden’s
specialist team of solicitors and conveyancers have a
wealth of experience, knowledge and skill in these areas
including:
• Implementation and continuing compliance with the
Retirement Villages Act and Regulations.
• Establishment of Retirement Villages including all
aspects of documentation such as Disclosure
Statements, Services Agreements, Condition Reports,
Leases, Strata Title conditions and finance
documents.
• Regulatory advice.
• Employment law and OH & S advice.
• Due diligence for the acquisition of a Village or Aged
Care Facility.
• Documentation for Nursing Homes, Hostel Care and
Respite Accommodation.
• Appeals to the Land & Environment Court of NSW.
Guy Vinden, Senior Partner of Atkinson Vinden heads a
team of expert professionals and would be happy to hear
from you in relation to any health industry issue you
may have. Please contact him on (02) 9411 4466 or email
gvinden@atkinvin.com.au with your next enquiry. Tel (02) 4577 3200
enquiries@zadro.com.au
RVA Yearbook 2009

People

NSW/ACT Regional Report

Our relationship with the Department of Planning has
strengthened following Sam Haddad’s speech at the State
Conference. We will be working together with the Department
of Planning in relation to items including Section 94
Contributions, Affordable Housing in Vertical Villages and
Leasehold Titles in villages.
We will also be working with the Government to ensure
that Retirement Villages can be an integral part of meeting the
accommodation and social needs of our ageing population.
The Retirement Villages Act was passed on 4 December
2008. The amendments reflected a lot of hard work achieved
by the RVA in ensuring a viable industry in NSW. The RVA has
been promoting and will continue to promote a viable industry
throughout the negotiation process of the Regulations when
they are released.*
Manager of the Year
Every year the decision of the judging panel to determine the
NSW/ACT Manager of the Year gets harder and harder, and this
year was no exception.
Andrea Riviere from Blue Hills Village and Durham Green
Village was the 2009 NSW/ACT Tony Baldwin Manager of the
Year. Andrea is responsible for the management of two of the
Tullich Family Communities villages and after 10 years in the
industry is an extremely worthy recipient of the award.
Congratulations to Andrea and all of this year’s nominees. A
record 19 applications were received in 2009 showing the
strength of RVA managers.
We wish Andrea the best of luck in the National Award and
best of luck to all of this year’s nominees and look forward to
receiving even more nominations in 2010.
NSW Regional Committee
Our thanks go to all members on the committee for the time
and effort that they contribute to the RVA. Their input on top of
their own busy lives in the industry is very much appreciated
and a fundamental reason why the RVA continues to grow,
develop and strengthen.
NSW/ACT has faced many challenges over the past 12
months and with the assistance of the committee, the RVA in
NSW/ACT has strengthened its position as the peak industry
body for retirement villages.
Our NSW/ACT Regional Manager, Mark Eagleston, is
greatly appreciated by all members and is to be complimented
for his diligence and effort in lifting the profile of the RVA
throughout NSW and the ACT. Mark’s ability to regularly liaise
with government stands the region in good stead for the future.
We thank Mark and his assistant Alison Parry for their
continued hard work throughout the year.
The NSW/ACT Regional Committee along with Mark and
Alison wish you all a Merry Christmas and a safe and
prosperous 2010.
Kevin Ryan
Chairman, NSW/ACT Regional Committee
*At the time of writing the NSW Regulations were yet to be
released.

We have over 40 years expertise in providing insurance

protection to the Retirement Village & Aged Care Industry.
We are proud of the reputation we have established with
many of our clients in this sector.
OUR UNIQUE SERVICES INCLUDE…
• General Insurance • Workers Compensation
• Life & Superannuation • Financial Planning
FOR FURTHER INFORMATION AND ENQUIRIES CONTACT:
John Saunders Tel: (02) 9587 3500 Email: johns@wsib.com.au
Web: www.warrensaunders.com.au

59
RVA Yearbook 2009

People

QLD Regional Report

through another body. However, since the inception of the

QLD RVA office this process is now being handled for RVA
members by the QLD office as part of the RVA’s National
Accreditation Scheme. In the last financial year two villages
were accredited in QLD from a total of 16 accredited villages.
This also represents 34.5% of QLD (RVA) villages being
accredited, demonstrating the retirement industry’s
commitment to accreditation and self regulation.

Resident Referrals
The QLD office has received a steady flow of phone calls and
requests for information on listings of retirement villages in
QLD. Approximately 350 packs have been sent to prospective
residents looking at a range of different Retirement Village
options in QLD. These packs consist of QLD Village Member
lists including relevant contact details as well as a booklet
entitled ‘Your Questions Answered’ on everything you need to
know about investing in a Retirement Village.
This area of our business provides the retiree market with a
service on any questions they may have where appropriate and
2008/2009 has been a year of growth and establishing a provides leads to our members of potential new residents.
presence in the QLD Region with August 2008 seeing the RVA QLD has also established a good working relationship
establishment of the QLD office in Brisbane. with the Residents Association in QLD – ‘ARQRV’. Through
In March 2009 our new QLD Regional Manager Genell establishing this relationship RVA has included representatives
Kokokiris joined the RVA to lead the QLD Region. Genell’s of the Residents Association in our Regional conference. The
background has been predominantly in commercial business RVA also assists in other ways to support the work they do on
with 11 years at IBM in Solution Sales, Marketing behalf of all QLD residents.
Communications and Operations. We also have been actively involved with community
Following in this report is an outline of the achievements groups like the Probus Group as a guest speaker at their
and successes the RVA QLD office has had in the last financial meetings.
year.
Government Relationships
Membership The RVA QLD committee has built good relationships with key
RVA QLD membership has been strong in its first year since the government players. This includes the following:
introduction of the new RVA QLD office. The table below gives • Office of Fair Trading
you a view of the growth over the last year. Overall the RVA • The Minister for Fair Trading, The Hon. Peter Lawlor, MP
has had a healthy increase in membership of 12%. • Deputy Brisbane City Council Mayor – Cr. Graham Quirk
Membership as at Membership as at We have also been actively involved, having a representative
Member category Increase %
30 June 2008   30 June 2009 on the Brisbane City Council’s Taskforce into Retirement and
Village 1 46 +97% Aged Care.
Associate 0 11 +100%
Professional Development Activities
Industry 0 1 +100% In 2009 we rolled out a series of successful professional
TOTAL 1 58 +98% development forums which has provided valuable information
and a great vehicle for QLD members and non members to
Village Accreditation network across a range of issues surrounding the industry.
Accreditation in QLD for villages has previously been done These are as follows:

60
RVA Yearbook 2009

People

QLD Regional Report

• December 2008 – Members Christmas Party, sponsored by This sales seminar was an interactive and intensive sales
KPMG class over two days with a total of 12 delegates.
• 11 March 2009 – National MacroPlan Forum, Retirement
The Future
Villages…The New Investment Frontier. This was RVA
RVA QLD has established itself as a strong body in the
QLD’s first forum and attracted 55 delegates with 60%
Retirement market in the past 6 months.
being non-members.
We believe the QLD region has enormous potential to
• 30 July 2009 – RVA QLD Inaugural Regional Conference.
become the retirement destination of Australia and look
This was QLD’s first Regional Conference which was a
forward to working on behalf of its members to be the
great success and in many ways put the RVA QLD office on
collective voice and leading body for the Retirement Village
the map as the leading voice in Retirement in the QLD
industry.
market. We had 115 delegates with 13 sponsors. The
I would also like to take this opportunity to thank the QLD
program was a very full day of a range of speakers with the
Regional Committee for their time and support in the last 12
theme of the conference being, Retirement Villages in the
months. The QLD Committee members are as follows:
2009 Economy – Crisis or Opportunity? The conference
• Andrew Macintosh, Aveo
also incorporated the Manager of the Year Award with the
• Javan Hollister, Keperra Sanctuary
2009 QLD Winner being – Peter Snell of Aveo, Lindsay
• Russ Dunstan, Living Choice Kawana Island
Gardens.
• Marco De Pasquale, Oak Tree Projects
• 8 September 2009 – RVA Networking Breakfast proudly
• Michael Winter, Allora Gardens
sponsored by CB Richard Ellis. Capitalising on a rebound in
• Justin Harrison, Villages at Yeronga
the retirement market. This event was a breakfast seminar
• Kaye Smyth, Live Life Villages
with an interactive panel sponsored by CB Richard Ellis
• Robin Lyons, Minter Ellison
with discussions around options and property opportunities
• David Netherton, Minter Ellison
in the Retirement Market, followed by banking and
In addition I would also like to give my sincere thanks on
development perspectives. We had 65 delegates attend this
behalf of the RVA QLD team to RVA’s National Partners for all
seminar.
their support and I look forward to continuing our working
• 10-11 September 2009 – Bloomers Sales Training – ‘Selling
relationship.
Retirement Living’. The RVA QLD office began the National
sales training program delivered by Bloomers which is a Michael Fallon
retirement living sales course directed at village sales staff. Chairman, RVA QLD Committee

Grande Pacific Retirement Resort, the first high rise retirement resort in Australia, is a five-star facility where all your
needs are met, we proudly provide a standard of retirement that stands alone in style, elegance, service and lifestyle.
Grande Pacific believes the focus of retirement is lifestyle and with the magnificent views of the parklands, the
Broadwater and the Pacific Ocean we meet our mission ‘A Lifestyle of Excellence’ with ease.
You are invited to visit our website, to contact us for further information or to call in and see this amazing concept of
retirement for yourself.
• www.grandepacific.com.au • info@grandepacific.com.au • Free call: 1800 450 433 • Tel: 5591 2111 • Fax: 5591 2199 •
70 Marine Parade, Southport, Gold Coast QLD 4215

61
RVA Yearbook 2009
People
SA/NT Regional Report
Regional Office SA/NT
In the past 12 months we have seen the strong commitment of
our Regional Committee Members and we thank them for their
continuing involvement and support of the industry.
The Committee meets on a monthly basis with members
participating in various national portfolios which identify, plan
and aid the progress of strategies devised within the RVA
growth and development focus, both on a regional and
national level.
We believe the presence of a full-time person as state
manager has provided a definite benefit to our Members as
well as allowing the RVA to develop stronger and highly
professional Development and Training sessions. Sandra Carle
has done a sterling job in her first year in this role, and we look
forward to an enhanced member services relationship in the
coming year. It’s pleasing to record that we have also achieved
our aim of providing a broader representation, support and
information base to our existing members.
The SA/NT region welcomes and encourages involvement
of its valued members with their committee and attendance at
members meetings to ensure that their voices are contributing
to developing strategies and encouraging growth and
development in our industry.
We are a young and vibrant industry and we need to meld
the knowledge and expertise of our ‘legends’ with the
innovative and lateral thinking of our newer members. This
62
blend will take us into the future. Let’s make sure we are at the
forefront moving forward.
The stronger our numbers, the louder our voices, the more
we will be heard!
Membership
The provision of increased benefits and services has added
value to RVA Membership and with that focus we have been
rewarded with a steady increase in our members.
We will continue to grow and develop the services
provided by the RVA and there are exciting developments in
the pipeline, some are already underway and some will roll out
in the near future.
Now is the time to become a member of your peak industry
body!
Professional Development, Presentations & Regional
Conference
October ’08 – ‘Are You Fire Safe?’ & ‘Risk Management/Cover
Limitations’ were the session topics presented by the
Community Education section of South Australian Metropolitan
Fire Service and JLT-VillageWISE. This PD Forum was held at
Kalyra Heights Village and we thank them for their hospitality.
February ‘09 – ‘The Art of Selling Retirement Living’, an
introductory presentation by Bloomers to their sales
programme was held for industry colleagues. Attendees, 35 in
all, came from 19 organisations to learn more about this
RVA Yearbook 2009

People

SA/NT Regional Report

integral subject during this economic period. for our members and industry colleagues. In addition, they
April ‘09 – ‘Maximising Sales Interest through Financial provide a great platform for the sharing of ideas and
Strategies’ presented by McInerney Barratt Financial Solutions. knowledge and we will develop them further in conjunction
This topic provided insights on the effect of moving into a with the national Professional Development calendar.
retirement village and the impact of Centrelink / DVA asset and Members having Expos or Open Days are encouraged to
income assessment, investing excess monies and what is the consider inviting our Regional Manager along to their event.
most financially efficient upfront payment to make for now and We will welcome the opportunity to provide service and value
in the future. An opportunity for our members to learn more whenever and wherever we can.
about the financial implications for potential residents and to
SA/NT Manager of the Year
reinforce the benefits of gaining financial advice on the ‘best
Chris Quinn of Programmed Property Services, the Award
stage of their lives’.
Sponsors, presented the winner of the SA/NT Manager of the
July ’09 – ‘Myth Busting the Act’ plus ‘Our Sales
Year (MOTY) Award, Gareth Norman of Salford Living, with his
Responsibilities’ & ‘The DMF and how do we sell it’. These
trophy at the Awards Presentation Night held on 30th July
interactive sessions were presented by Jodie Prosser of
2009. We congratulate him on his success. As usual, it was a
Optimum Retirement Services and Julia Sweeney of Fisher
challenging task for the judging panel as all participants are
Jeffries with practical activity and discussion topics that
broadened all attendees’ knowledge. This session was very well
received with our largest contingent of attendees both
members and non-members. A real example of “value-
addedness” for our industry.
The Retirement Villages Mini Expo 2009 was held on
Tuesday 12th May and attended by 140 potential residents
spread over 2 sessions. Organised by the Seniors Information
Service the RVA was asked to be involved to speak on the
value and benefits of retirement living. The Expo was a
successful event for all concerned and we thank SIS for the
opportunity to be involved. Discussion on the next Expo has
commenced.
The 8th Annual RVA & ACS SA/NT Conference held in May
focused on ‘Sustainability and Viability in Retirement Living’
was very successful with 102 delegates in attendance. The
Keynote Speaker was John Brodie – Founder and Principal of
VIM Sustainability who presented on the built environment’s
impact of climate change and on future costs of electricity and
the factors contributing to this increase. The panel discussions
generated more ideas on how practical implementation can
occur in the reduction of our carbon footprint. One of our RVA
‘legends’, Jim Hazel, was a facilitator and we thank him for his
participation on the day and all other speakers and presenters
who contributed to a very successful conference.
Planning is underway for next year’s event on May 21st
2010. ‘Managing Today from Tomorrow’ is the programme title
for our 9th joint conference.
Professional Development & Training Seminars continue to
be a high priority of the RVA and we endeavour to provide
subjects and topics that will educate and broaden knowledge

63
RVA Yearbook 2009
People
SA/NT Regional Report
worthy winners in their own right and nomination is
acknowledgement of the esteem in which they are held by
their residents and management alike.
Also present was Ray Wood of The Senior, the Media
Sponsor for the MOTY Award.
We thank our sponsors for their ongoing support of the
Manager of the Year Awards and encourage you to consider
nominating your village managers in next year’s event.
Industry Relationships and Annual Sponsorships
The SA/NT office is proud of its relationships with the following
bodies and we continue to liaise together to ensure effective
and mutually beneficial outcomes.
• South Australian Retirement Village Residents Association
(SARVRA)
• Seniors Information Service (SIS)
• Council on the Ageing (COTA)
• Office for The Ageing (OFTA)
• Retirement Village Advisory Committee (RVAC)
• Aged and Community Services SA/NT (ACS)
SARVRA President, Joan Stone, has demonstrated
leadership and professionalism in this role and brought a
further dimension to the table with a resident view. Joan is also
a long-standing member of the National Accreditation
Committee, and the RVA thanks her for her ongoing
commitment to the Australian Retirement Village Accreditation
Scheme (ARVA).
64
The RVA increased its commitment and sponsorship of the
Seniors Information Service in the 2009/10 financial year,
specifically in the new format SIS Retirement Housing
Directory. A valuable partnership for all Members and potential
residents in retirement living.
The RVA maintains its involvement in COTA’s Every
Generation Festival and supports the recognition of the senior
population.
Our working relationships with OFTA, RVAC & ACS are of
communication, education, respect and mutual support.
We continually assess and develop our relationships and
annually review our sponsorships. We also look for other
opportunities where there may be partnerships that are
mutually beneficial.
Professional Advice and Assistance
On behalf of the SA/NT RVA office we acknowledge and
sincerely thank our sponsors, partners and members for their
support and participation, professional advice and assistance
during the year. We look forward to continuing this year’s
success into the future.
Dennis Chamberlain
Chairperson, SA/NT Regional Committee 2009
New
developments
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Whether dealing with new entrants

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Property Team’s strengths lie in its:
• Industry experience and
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• Proven track record with industry
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Avoid sudden twists, • Size, which allows for timely

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get the right business tailor our products and services to
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In addition to our specialist aged

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Brisbane Margaux Beauchamp
care activities, we provide a broad
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Perth Chris Nicoloff
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Phone 1300 753 222 20 Queen Street
Melbourne Victoria 3000
T: (03) 9629 9629
F: (03) 9629 9630
E: office@lewisholdway.com.au
W: www.lewisholdway.com.au
61 APARTMENTS
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RVA Yearbook 2009

People

VIC/TAS Regional Report

2008/09 has been a year of strong growth for the Victoria and Victoria/Tasmania Manager of the Year
Tasmania region. The year’s results are even more impressive The RVA is committed to the continuous performance
considering the impact of the Global Financial Crisis and improvement, training and development of village managers—
provide a strong foundation for the region to continue to grow the custodians of the critical interface between our business
into the future. and our customers.
The RVA responds to many enquiries from RVA members The Village Manager of the Year (MOTY) Award recognises
and the general public on a whole range of issues. This report high achieving managers who exemplify the increasing
highlights just some of the many achievements through the standards of our industry operations. MOTY is a highly coveted
year. award and very competitive. The winner of the Victoria
Over six hundred information packs were sent to Tasmania Manager of the year for 2008 was Penny Lloyd of The
prospective residents during the year. The packs include ‘Your Village Williamstown. Congratulations Penny!
Questions Answered’ and accreditation information, a
Consumer Affairs Victoria booklet and letter from the Regional
Membership
Manager. RVA Membership has seen strong growth across all categories
The purpose of these packs is to: in the region, which is a positive indicator of the value that the
1. provide relevant information to assist consumers to RVA contributes to industry stakeholders.
understand the benefits of Retirement Village living Member Membership Membership
Change %
category 30 June 2008 30 June 2009
2. give prospects confidence that they are dealing with a
Village 133 145 12 +8%
professional and credible industry
3. promote the industry’s commitment to operational Associate 25 32 7 +21%

excellence through the accreditation program Industry 4 7 3 +42%

4. provide contact details of member villages to facilitate their TOTAL 162 184 22 +12%
further enquiries
5. provide links to relevant government and non-government Village Accreditation
organisations In the 2008/09 financial year there were 21 villages newly

67
 Pianos and Pianola’s direct
from the importer

109 York Street South Melbourne 3205

Tel: 1800 282978 or (03) 9690 3444
www.pianotime.com.au E info@pianotime.com.au

RETIREMENT VILLAGE
DESIGNERS

Based in Shepparton Victoria

Specializing in Villages in country

Victoria & N.S.W

Design & Project

Administration available

Over 20 years experience

in the industry

100c WYNDHAM STREET, SHEPPARTON, VICTORIA 3630

PH (03) 5822 1255 FAX (03) 5831 2153 www.brucemactier.com.au
RVA Yearbook 2009

People

VIC/TAS Regional Report

accredited in VIC/TAS resulting in a

total of 62 accredited villages in the
region. This represents a 30%
increase in accreditation on 2007/08
financial year.
This also represents 43.5% of
VIC/TAS member villages now being
accredited, demonstrating the
retirement industry’s commitment to
accreditation and self regulation.

Legislation and Regulation

Stamp duty – impose duty on
Victorian leases
The RVA became aware of a new Bill
being introduced into the Victorian
Parliament on the 4th December
2008 to amend the Duties Act 2000.
The Bill was designed to close
certain loopholes pertaining to long term leases at the “top end members but especially for Victorian seniors.
of town”.
Amendments to the Retirement Villages Act – CPI cap for
Although the Bill was not created with the intention of
adjusting the amount of the annual maintenance charge paid
changing retirement village stamp duty on loan/leases, the
by Retirement Village residents
results would have been significant increases in stamp duty
The RVA presented a submission to Consumer Affairs Victoria
payable by the residents of Retirement Village units.
(CAV) in June 2008 regarding a review of the regulations
The RVA, in consultation with Russell Kennedy Solicitors,
supporting the Retirement Villages Act.
made urgent contact with the offices of the Treasurer, Minister
The RVA was included in the consultation process and was
for Finance and Consumer Affairs Victoria that resulted in a
invited with other stakeholders by Consumer Affairs to make
detailed submission representing the industry’s concerns.
comment on the Regulatory Impact Statement (RIS) in January
Continued meeting and lobbying occurred requesting that
2009.
retirement villages be exempt from the provisions within the
The RVA has been continually working with CAV over the
Bill.
year and has provided further detailed information to assist
On 19 February 2009, the Brumby Government made the
CAV’s external Consultant.  The Regulatory Impact Statement
decision that long term leases that applied to retirement
(RIS) was released by CAV 24 December 2008.
villages did not represent the type of transaction that should be
Consumer Affairs have now released the final form of the
caught as part of the leasing provisions of the Act amendment
New Regulations, and although they did not adopt all of the
and a media statement to this effect was released.
amendments requested by the RVA, the process of engaging
The Retirement villages will now have their tax exempt
with Consumer Affairs on this project has continued to
status guaranteed through a specific clause to be inserted into
strengthen our lines of communication and our working
the Act. The change will protect Victorian seniors from paying
relationship.
thousands of dollars in stamp duty.
The legislation, if it had not been amended, would have Town planning
severely limited choices for older Victorians seeking the A working party was developed in 2008/09 to open dialogue
security and support of Retirement Village accommodation. and lobby planners in both state and local government in
The RVA worked tirelessly to achieve this result and it has been Victoria. The aim of the working group will be to adequately
a great reward for these efforts, not only for the RVA and its plan for Victoria’s ageing population, ensuring appropriate and

69
RVA Yearbook 2009
People
VIC/TAS Regional Report
well located sites are made available for Retirement Village
living.
Municipal Rates on Retirement Village Units
The RVA is advocating on the legislative issues for the
reduction on Council rates payable by residents in retirement
villages.
The RVA holds the view that units within a Retirement
Village should be charged less than single block properties
because of the range of infrastructure and health type
community services that are not drawn upon as with single
block properties.
In addition, rates have been increasing at a greater rate than
that of the aged pension which means that the maximum
pensioner concession (currently capped at $168) is far below
the 50% rebate which was the original intention of the
concession.
The RVA created a working party in 2008/2009 that has
been working solidly over the year to compile all relevant
information on the issue and will soon have a draft issues
paper completed that will be presented to the Victoria and
Tasmania Regional Committee.
The Working Party has also met with CAV and the Minister
for Consumer Affairs (the Hon Tony Robinson) on this
important issue.
The RVA is also working on issues such as local councils
being stripped of their valuation duties and the state
government taking over land valuations. This change is likely to
have significant ramifications to retirement villages and how
units are valued.
The RVA has also worked closely with villages that are
lobbying their local councils to ensure a collective voice is
heard. This, in conjunction with the draft issues paper, will lead
into the development of a clear strategic direction for local
government rates that will benefit both village operators and
village residents while being acceptable to state and local
government.
Workcover
The RVA have prepared a discussion paper on worksafe injury
insurance classification and premiums as there is not a
dedicated category for Retirement Village Managers for the
purpose of determining work cover premiums. The RVA will
lobby the Victorian WorkCover Authority for a review.
Industry Promotion
To support members, the RVA continues to promote Retirement
70
Village living in specialist publications in Victoria and
Tasmania such as the Retirement Living Magazine, with over
15,000 print copies distributed across Australia and The Senior
Newspaper with 95,878 copies (CAB audited figure)
distributed to over 2000 outlets in Victoria.
Melbourne Retirement & Lifestyle Expo
The 5th Melbourne Retirement & Lifestyle Expo was held at
Caulfield Racecourse in September 2008. The RVA’s stand was
supported by 4 sponsors and brochures were distributed to
promote members to over 15,000 potential residents.
Retirement Village Open Day
The RVA also promoted Retirement Village Open Day at
Melbourne Retirement & Lifestyle Expo by distributing a
brochure listing participating villages to over 15,000 potential
residents.
The public had the opportunity to visit and find out more
about Retirement Village living when over 70 retirement
villages opened their doors for a weekend in October 2008
over Seniors Week.
A half page advertisement, listing all villages, with a
photograph and an editorial was published in The Senior.
Liaison with other organisations
The RVA engages with, and supports, related industry
associations and continues to encourage dialogue to ensure
effective and mutually beneficial outcomes. The organisations
include:
• Residents of Retirement Villages of Victoria
• Council on the Ageing
• Consumer Affairs Victoria
• Aged & Community Care Victoria
• Housing for the Aged Action Group Inc.
Professional Development – Forums and Seminars
A successful range of forums and information seminars were
held during the year and provided invaluable information to
village managers and staff, as follows:
• Essential service preventative maintenance and evacuation
procedures in Retirement Villages, presented by Trevor Cass
and Leigh Fraser both of Riley Shelley and Cheryl Hambly
of NBRC respectively September 2008
• Complaints Management, presented by Steve Aivaliotis, in
December 2008
Other seminars included:
• How to prepare for accreditation courses
• How to manage effective workplace relationships
RVA Yearbook 2009

People

VIC/TAS Regional Report

• How safe is your workplace Professional advice and assistance

• Insurance for retirement villages The RVA acknowledges and thanks the many sponsors,
• Retirement Villages – The New Investment Frontier partners, volunteers and contributors to the continuing growth
• Continuous Improvement in Retirement Villages and success of the industry.
In particular, the RVA thanks Herbert Geer, Russell Kennedy
Annual Regional Conference
and VillageWISE for their continued advice and assistance
The Annual Regional Conference was held 31 July 2008 at the
during the year.
Hemisphere Conference Centre and the theme was ‘Leading
the Way’. The program offered a strong line up of speakers Stuart Nicolson
being experts in their field providing invaluable information on Chairman, VIC/TAS Regional Committee
duty of care responsibilities, legislative requirements,
workplace safety, employment and discrimination issues and David Bruce
complaints management. VIC/TAS Regional Manager

Madgwicks has an excellent reputation for assisting clients

in the acquisition, sale, development and management of
retirement villages and aged care facilities.

Madgwicks can offer legal advice to RVA members in areas

including:

` Negotiating and drafting contracts for sale and purchase

of retirement village and aged care facilities, due
diligence, management services agreements, leases,
To obtain further information and advice please contact: construction agreements, profit share agreements,
marketing agreements, novation deeds, option
Accredited Property Law Specialist
agreements and resident agreements;
Lorna Gelbert
Partner ` Retirement village and aged care legislation;

T: +61 3 9242 4763 ` Structuring for joint ventures and syndications;

E: lorna.gelbert@madgwicks.com.au
` Complex stamp duty, GST and other property tax
matters; and
Madgwicks
Level 33, 140 William Street, MELBOURNE ` General property work including subdivisions, easements,
planning and environment issues;
www.madgwicks.com.au

71
 Innovation in Retirement Living

Arcadia Group designs and builds luxury retirement communities. Modelled on their award-winning
Arcadia Waters resort-styled community in Perth, the group is currently building two new resort
communities in Geraldton and Port Denison in Western Australia and is involved in other major
residential retirement developments in Malaysia.

For further information on Arcadia Group, contact their head office in Perth on (08) 9218 8388 or visit
their website at www.arcadiawaters.com.au.

Perth Geraldton Port Denison Malaysia


 





 



 

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RVA Yearbook 2009

People

WA Regional Report

Legislative review and education were the focus for the WA

RVA Region during 2009.

GOVERNANCE
Review of the Retirement Villages Act in WA
In a major undertaking, the members of regional committee
responded to a paper released by the Department of Consumer
and Employment Protection (DOCEP) containing the findings
of a comprehensive review of the Retirement Villages Act in
WA. The paper was released following numerous public WA have also commenced. Topics covered in Forums and
forums which were all attended by volunteers of the regional Workshops throughout the year have included Transition into
RVA. Our response numbered some 80 pages. DOCEP have Formal Care, 1st 24 hours - WA Coroner’s Office and Dealing
now issued a Draft Report of recommendations (82 in total) with Challenging People. Thanks to Ali White for her work
and the regional committee are in the final stages of submitting chairing this very important portfolio.
our response. I would like to thank the committee – in COMMUNICATIONS & MEMBERS RELATIONS
particular Everard Yeo, Stephen Kenney and Adrian Pagett for
their ongoing dedication in this important and technically Best of the West
precise undertaking. One of our region’s major communications initiatives will take
place at the end of October when a 24 page stitched and
PROFESSIONAL DEVELOPMENT AND trimmed full colour magazine will be inserted into the West
REGIONAL CONFERENCE Australian paper and delivered to some 600,000 readers
(301,000 over the age of 50). Designed as a reference guide to
Education – AIM Diploma
the market, the magazine will provide information about the
As part of our continuous improvement policy the regional
role of the RVA, its member villages as well as ageing and
RVA partnered with the Australian Institute of Management in
industry trends and will have a particular focus on the
WA to develop and deliver a Diploma in Business (Village
association’s accreditation scheme. We will provide
Management) course which commenced in January of 2007.
professional editorial style copy ensuring longevity. This lift-out
Graduation took place in December 2008 and feedback from
provides an outstanding opportunity for RVA Members,
Village Managers attending was very positive. The regional
accredited members and associate members to reach their
Professional Development subcommittee chaired by Alison
target market. I am pleased that the minimum revenue required
Rogers is currently reviewing the course and will be submitting
to produce this magazine has been comfortably surpassed and
any improvements or recommendations required for regional
offer thanks to members for their confidence in supporting this
committees’ consideration prior to launching the next course.
important undertaking and in particular my fellow colleagues
WA RVA Conference Phil Simich and Linda Smith for their professional assistance.
Some 120 delegates attended a very informative regional
West Australian Retirement Pages
conference early August at the beautiful Vines Resort in the
Our key industry partnership with the West Australian
Swan Valley. More than 100 delegates attended the Grand Ball
continues and we thank them for providing the RVA with space
that evening and I am pleased to report the overwhelming
inside their Retirement Living lift-out to promote members and
majority of feedback simply praised the event organisers for
services. This is a wonderful vehicle for promoting the brand of
running a wonderful event. Thanks must go to Roger Kwok and
the RVA and moreover village members who are able to submit
Linda Smith for their efforts which were ably supported by staff
copy for inclusion. Committee will be reviewing page content
and volunteers.
with a view of ensuring it remains contemporary and useful to
Managers’ Networking Forums all readers.
Managers’ Networking Forums continue to be well attended in Newsletter – The Regional Manager has commenced a
Perth. Networking Forums in Mandurah and Regional areas in weekly newsletter to all members informing them of all topical

73
RVA Yearbook 2009

People

WA Regional Report

matters and upcoming events. Given the support for our
monthly forums it does appear this initiative is welcomed by
our members and complements the newsletters we receive
from national.
Face to face meetings – Our regional manager Linda Smith
has implemented a pro-active meeting schedule between herself
and members, associate members and potential members to
discuss initiatives and services that may be of benefit.
RVA Christmas Function – The annual RVA Christmas
Cocktail functions are well supported and provide an
important opportunity for members to network with other
members including committee.
STANDARDS & ACCREDITATION
Two Accreditation Surveyors Courses were conducted during
May and October 2009 which were well attended by
interested parties wishing to become involved with the
Accreditation Scheme albeit from ‘the other side of the fence’.
How to prepare for accreditation courses were also
conducted in May and October 2009. The importance of these
courses is demonstrated by the fact the Associations Standards
Manager, Gary Metcalf, now runs these with excellent
feedback received.
Accreditation
14 villages were awarded with their Accreditation Certificates
during the financial year ending June 30 2009. Currently, just
over 34% of member villages in this state are Accredited.
Accreditation Workshops
I would like to acknowledge the work performed by committee
member Noreen Byrne who heads up our Standards
subcommittee. Noreen runs workshops throughout the year to
provide practical assistance to those seeking accreditation for
the first time or even members renewing their accreditation.
Noreen also assists the Association on the national Standards
committee and is an integral reason why the Accreditation
Scheme is so robust and well regarded.
Membership
The WA region welcomed two new villages and five new
sssociate members during the past five months and we look
forward to the business development initiatives introduced by
our CEO Andrew Giles delivering an ever wider stream of new
applicants in the coming years.
WA RVA Staff
Our Regional Manager Linda Smith has completed five months
of service at time of writing and is actively promoting the
services and benefits of membership to industry. Assisting
Linda is Michaela Purwien who assists in the office on a
Monday and Thursday and has become a popular member of
the team.
Regional Committee – The Regional Committee undertakes
significant voluntary work on behalf of all members and I
thank them for the professional way in which they conduct not
only themselves but the manner in which they represent the
Association.
Angus Kukura
WA Regional Chairperson

NEED HELP AT YOUR VILLAGE?

Gerald Major Property Group is ready to assist you with every aspect of village management.

VILLAGE ESTATES MANAGEMENT MAJOR VALUATIONS GEN PLUS REAL ESTATE

• Retirement Village Management • Valuation and Consultancy • Sales and Consultancy

Call Gerald or Jen today on 08 9481 3244

www.gmpropertygroup.com.au Members: RVA, REIWA, API, AIUS

74
RVA Yearbook 2009

Performance

Sanctuary Energy

ENERGY RETAILER WITH

A GREEN FOCUS
Sanctuary Energy is an Energy
Retailer, and is the result of
property developers who were
searching for a better deal from
the Government Owned
Retailers. Sanctuary Energy is
currently operating in New
South Wales, Queensland, the
Australian Capital Territory and
South Australia.
Our Vision
Understanding that climate
change is something that we are
all responsible for, and we must
contribute to the solution.
Our retail focus is currently
on residential property
developments and commercial
premises that are themselves a
community – these include
retirement villages and
shopping centres. By taking
advantage of generous
government renewable
incentives such as the Solar
Bonus Schemes, participants in
their community can effectively
go green for no extra cost than Our Products and Offers
what they are paying now, and in most cases it will actually be In order to provide the resident’s energy from green sources,
at a discounted cost. we install solar cells which will provide up to 1.5KW of energy
Our History from the sun.
To date Sanctuary Energy has been able to offer great discounts The solar cells are installed at no cost to the resident or to
and a variety of energy saving initiatives which benefit the retirement village.
everybody. In addition, Sanctuary Energy is an Our current offering, known as the Community Climate
environmentally conscious company with a great focus on our Change plan, is offered to all states and includes the following:
carbon footprint, and those of our customers. Through our 1. 10% discount off your current state regulated tariff.
strategic alliances with companies who are forward thinking 2. Renewable energy at no extra cost.
and technologically savvy, we in turn are able to pass the 3. 50% share of the revenue derived from the Solar Bonus
benefit of our research and industry expertise to our clients. Scheme.
Sanctuary Energy and our joint venture partner DCM What does this mean in dollars and cents to the resident who
Sanctuary are currently in the process of installing in excess of is a conservative consumer?
9,000 solar panels. A conservative resident typically only uses at most 4,000 kWh

75
RVA Yearbook 2009

Performance

Sanctuary Energy

of electricity every year, i.e. approximately 1,000 kWh every 0.9000

quarter. 0.8000
0.9000 0.7000
0.8000 0.6000
0.7000 0.5000
0.6000 0.4000
0.5000 0.3000
0.4000 0.2000
0.3000 0.1000
12:00:00AM

2:00:00AM

4:00:00AM

6:00:00AM

8:00:00AM

10:00:00AM

12:00:00PM

2:00:00PM

4:00:00PM

6:00:00PM

8:00:00PM

10:00:00PM
0.2000

0.1000
12:00:00AM

2:00:00AM

4:00:00AM

6:00:00AM

8:00:00AM

10:00:00AM

12:00:00PM

2:00:00PM

4:00:00PM

6:00:00PM

8:00:00PM

10:00:00PM

Consumption (kW per half hour)

Generation (kW per half hour)
Figure 2: 1.5kW Solar Generation Profile compared to a residents Consumption
Consumption (kW per half hour) Profile who uses 8,000 kWh of electricity per year.
Generation (kW per half hour)
Figure 1: 1.5kW Solar Generation Profile compared to a residents Consumption
Customer Perspective using 8,000 kWh
Profile who uses 4,000 kWh of electricity per year.
Summary of Results No Solar Panel With a Solar Panel
Customer Results
Customer Perspective using 4,000 kWh Electricity 1 $1,426.32 $1,426.32

No Solar Panel With a Solar Panel Daily Service Charge2 $168.63 $168.63
Summary of Results
Electricity1 $713.16 $713.16 Sub Total $1,594.95 $1,594.95

Daily Service Charge2 $168.63 $168.63 Discount 5%/10% 3 -$79.95 -$159.50

Sub Total $881.79 $881.79 Feed In Tariff (50/50)4 – $137.55

Discount 5%/10%3 -$44.09 -$88.18 Total Electricity Bill $,297.91 $375.88

Solar Bonus Scheme (50/50)4 – -$417.74

Total Electricity Bill
Notes
1. The cost of electricity has been calculated using Energy Australia regulated
retail rates. Refer:
http://energy.com.au/energy/ea.nsf/Content/NSW+TOU+Res+Rates
2. The daily service charge is the fee currently charged to every resident in NSW
for billing and metering, this is a government regulated fee, to avoid confusion
the 10% discount does not apply to this fee.
3. Majority of electricity retailers provide some form of discount for being a
customer, this is in most cases 5%. The Sanctuary Energy climate change plan
discount is 10%.
4. Sanctuary Energy shares the 60c per kilowatt hour (kWh) paid for surplus
electricity sold back to the electricity grid with the resident equally.
Refer: http://www.dwe.nsw.gov.au/energy/sustain_renew_fit.shtml
What does this mean in dollars and cents to the resident who
is a heavy consumer?
A heavy consumer typically only uses at most 8,000 kWh of
electricity every year, i.e. approximately 2,000 kWh every
quarter.
Notes
$837.70 $375.88 1. The cost of electricity has been calculated using Energy Australia regulated
retail rates.
Refer: http://energy.com.au/energy/ea.nsf/Content/NSW+TOU+Res+Rates
2. The daily service charge is the fee currently charged to every resident in NSW
for billing and metering, this is a government regulated fee, to avoid confusion
the 10% discount does not apply to this fee.
3. Majority of electricity retailers provide some form of discount for being a
customer, this is in most cases 5%. The Sanctuary Energy climate change plan
discount is 10%.
4. Sanctuary Energy shares the 60c per kilowatt hour (kWh) paid for surplus
electricity sold back to the electricity grid with the resident equally.
Refer: http://www.dwe.nsw.gov.au/energy/sustain_renew_fit.shtml
OTHER GREEN INITIATIVES
Sanctuary Energy would also like to tell you about some of our
other initiatives that further enhance our green credentials.
These include free solar hot water and our large scale
initiatives that we are leading in your community.
Free Solar Hot Water
Sanctuary Energy, as part of their commitment to climate
change, are offering eligible residents in New South Wales a
free solar hot water system so that residents can still obtain

76
RVA Yearbook 2009

Performance

Sanctuary Energy

huge benefits from installing solar at zero cost.
Sanctuary Energy are to provide a free spilt level solar hot
water system to the eligible retirement village residents.
The terms and conditions would simply include:
1. The solar hot-water system must be replacing an existing
electric hot water system;
2. Sanctuary Energy would install a split level solar hot water
system;
3. The Federal and State Government would pay $2,400 to
the customer;
4. The $2,400 is paid from the resident to Sanctuary Energy;
and the customer would save approximately $300 per year
on energy costs.
in the same way a coal steam turbine plant works. The result is
potentially hundreds of megawatts of clean power for a much
lower cost per unit of energy.
THE IMPACT OF THE EMISSIONS TRADING
SCHEME (ETS) ON EVERYONE
The Carbon Pollution Reduction Scheme introduced by the Rudd
Government will set an overall environmental cap on pollution
by issuing a set number of permits, and allow entities to trade
those permits, hence putting a price on carbon. This price that is
placed on carbon will be passed on to the end consumer which
will effectively increase the cost of electricity for those who have
taken no measures to reduce their carbon emissions.

Example of Solar Panels fitted to residential premises. Large Scale Solar Technology

Large Scale Initiatives

OUR MESSAGE
Many of the sustainable and renewable initiatives we provide
On a whole, we deliver significant energy savings and the offer
are very visible to you as they are changes to your dwelling or
of renewable energy to residents of retirement villages across
immediately surrounding environment. What you may not
Australia. We are also pleased to say that the message
know is that we are extremely active in changing the way in
Sanctuary Energy is delivering: “that we can work together, and
which we rely on high carbon emitting forms of power
at the same time be environmentally conscious,” is catching
generation and transmission.
on.
While solar technology installed on your roof contributes to
We look forward to working together with our clients to
reducing our reliance on transmission infrastructure and fossil
provide a renewable source of electricity and great discounts
based fuels, it is costly to implement in large scale and is not
long into the future.
efficient when compared to other forms of renewable
generation. Large Scale Solar Thermal technology allows us to
concentrate the power of the sun by many multiples. This
energy can be used to heat water and other chemicals to
produce steam to drive large and more efficient turbines; much

77
RVA Yearbook 2009
Performance
Going Green
Scott Lambert, Holding Redlich Lawyers, suggests some key points to
consider before embarking on a green rating project.
Launched in 2003 by the Green Building Council of Australia,
the Green Star program is a voluntary environmental rating
system for buildings in Australia. The program has produced a
suite of tools for various types of buildings, including
commercial offices.
The tools rate a building in relation to its management, the
health and wellbeing of its occupants, accessibility to public
transport, water use, energy consumption, the embodied
energy of its materials, land use and pollution.
In April/May 2008 edition, Stephanie White, Master
Builders Workplace Health & Safety/Environment Advisor,
reported that under the Green Star rating system projects are
evaluated against eight environmental categories, with the
78
addition of innovation. Within each category, points are
awarded for initiatives that demonstrate that a project has met
the overall objectives of Green Star and the specific criteria of
the relevant rating tool credits. Points are then weighted and an
overall score is calculated, determining the project’s Green Star
rating.
Partner of Holding Redlich Lawyers, Scott Lambert has 20
years experience in the construction and development industry
and is the only law firm partner in Queensland who is an
accredited Green Star professional.
Scott has put together a suggested checklist of some key
issues to think about before embarking on a green rating
project.
RVA Yearbook 2009
Performance
Going Green
CHECKLIST TO ACHIEVE YOUR STARS
The concept of ‘going green’ is often a lot easier than a green
reality. When setting out to achieve a Green Star or NABERS
rating for a building, you need to carefully think through the
type of green rating to be obtained, what roles each party is to
play and what are the consequences if the rating is not
obtained.
Here is a suggested checklist of some key issues to consider
when becoming involved in a green rating project.
Project registration
• Who is to register the project?
• Has a certification agreement (Green Star) or commitment
to agreement (NABERS) been entered into?
• Are the obligations under the certification agreement or
commitment agreement understood?
• What trade mark rules apply (if any)? [This is important for
marketing the project.]
Rating and rating tools
• What type of rating is to be obtained? For Green Star – is
the rating for design or as built? For NABERS – is it a whole
building, base building or tenancy rating?
• What version of the rating tool applies? This may depend
on when the certification agreement or commitment
agreement was entered.
• If the building is owned or leased by a government entity,
have any applicable government minimum green
requirements been considered?
Project cost issues
• Has the extra cost of an ESD consultant been factored into
the price?
• Have ongoing green meetings, data and document
collection and submissions been adequately allowed for?
• Who is preparing the simulation model?
Contractual documentation
• Has the green rating been adequately defined?
• Who is to control the accreditation/certification process?
• Who is to retain the relevant green consultant with the
appropriate experience?
• Does the contract provide specific design criteria that
cannot be altered by the parties?
• Do the subcontracts and consultancy agreements
back-to-back the obligations in the contract?
• For a NABERS Energy Rating, how is the ongoing
You need to carefully think
about the type of green rating
to be obtained, what roles
each party is to play and
what are the consequences if
the rating is not obtained.
monitoring and data collection process to be managed?
This monitoring period may extend to a significant time
after PC.
• How is the tenant’s fit out and use to be managed to avoid
any adverse impact on the ability to achieve the
appropriate NABERS Energy Rating? Is there a tenant’s fit
out guide specifying ‘green design criteria’?
• Does the agreement for lease and lease documents impose
green obligation on the landlord and tenant? If so, do these
obligations back-to-back the obligations in the contract?
• Is additional security required to be held until the rating is
secured?
• At what point in time do the parties agree that their
obligations cease? What events trigger that cessation? What
are the remedies available if the rating is not obtained?
Assessment and certification
• Who is compiling the rating documentation and filing with
the appropriate body and at what price?
• What is the position if the assessment is unsuccessful? Can
you re-apply?
• Have timing issues been considered? (Green Star as built
design can be achieved before PC, Green Star as built can
be achieved soon after PC, but NABERS require data over
12 months when the building is continuously 75%
occupied)
Do not let the building you are working on stand as a
testament to your failure – consider the key issues and
understand the risks so that your building will reach the stars
you are striving for!
For more information about the Green Star program, call the
Master Builders Health, Safety and Environment team on (07)
3225 6404 or visit the Green Building Council of Australia
website at www.gbca.org.au.
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Performance
The inconvenient truth about
change management:
Why it isn’t working and what to
do about it
By Scott Keller and Carolyn Aiken*
Conventional change management approaches have done little
to change the fact that most change programs fail. The odds can
be greatly improved by a number of counter-intuitive insights
that take into account the irrational but predictable nature of
how employees interpret their environment and choose to act.
In 1995, John Kotter published what many consider to be
the seminal work in the field of change management, Leading
Change: Why Transformation Efforts Fail. Kotter’s “call to
action” cites research that suggests only 30 percent of change
programs are successful.1 His work then goes on to answer the
question posed in its title and to prescribe what it takes to
improve this success rate.
Kotter is perhaps the most famous purveyor of change
management wisdom, but in fact he is one of many who have a
point of view regarding how managers and companies can best
manage change. In the last two decades, literally thousands of
books and journal articles have been published on the topic.
Today, there are more than 1,800 books available on
Amazon.com under the category of “Organisational Change.”2
The field has developed to the extent that courses dedicated
specifically to managing change are now part of the curriculum
in many major MBA programs.3
With so much research done and information available on
managing change, it stands to reason that change programs
today should be more successful than those of more than a
decade ago, right?
The facts suggest otherwise. McKinsey & Company recently
surveyed 1,546 business executives from around the world,
asking them if they consider their change programs
“completely/mostly” successful: only 30 percent agreed.4
Further investigation into a number of similar studies over
the last 10 years reveals remarkably similar results.5 The field of
change management, it would seem, hasn’t really changed a
thing.
This failure to live up to its promise is why many senior
executives today recoil at the mere mention of the words
‘change management’.
80
Memories come flooding back of significant time and effort
invested in “the soft stuff” that, in the end, yielded little tangible
value.
The focus of McKinsey’s applied research over the last four
years has been to understand why change management efforts
consistently fail to have the desired impact and, most
importantly, what to do about it. At this point in our research
we don’t claim to have all the answers.
We have, however, developed and tested a set of
perspectives in real-life application that senior managers have
found genuinely insightful and that have consistently delivered
business results far beyond expectations.
SUCCESSFUL CHANGE REQUIRES
UNCOMMON SENSE
Digging deeper into why change programs fail reveals that the
vast majority stumble on precisely the thing they are trying to
transform: employee attitudes and management behavior
(versus other possible sources such inadequate budget, poorly
deployed resources and poor change architecture).6
Literally thousands of prescriptions are put forward in
various change management publications regarding how to
influence employee attitudes and management behavior.
However, the vast majority of the thinking is remarkably similar.
Colin Price and Emily Lawson provided a holistic perspective in
their 2003 article, The Psychology of Change Management, that
suggests that four basic conditions have to be met before
employees will change their behaviour:7
A. A compelling story: They must see the point of the change
and agree with it, at least enough to give it a try
B. Role modelling: They must also see colleagues they admire
modelling the desired behaviour
C. Reinforcement systems: Surrounding structures, systems,
processes and incentives must be in tune with the new
behaviour
D. The skills required for change: They need to have the skills
to do what is required of them.
RVA Yearbook 2009
Performance
The inconvenient truth about change management:
Why it isn’t working and what to do about it
This prescription is well grounded in the field of psychology
and is entirely rational. Putting all four of these conditions in
place as a part of a dynamic process greatly improves the
chances of bringing about lasting changes in the mindsets and
behaviors of people in an organisation – and thus achieves
sustained improvements in business performance.
One of the merits of the approach above is its intuitive
appeal, so much so that many managers feel that, once
revealed, it is simply good common sense. And this, we
believe, is precisely where things fall apart. The prescription is
right, but rational managers who attempt to put the four
conditions in place by applying their “common sense” intuition
typically misdirect time and energy, create messages that miss
the mark, and experience frustrating unintended consequences
from their efforts to influence change.
Why? In implementing the prescription, they disregard a
scientific truth of human nature: people are irrational in many
predictable ways. The scientific study of human irrationality has
shown that many of our instincts related to understanding and
influencing our own and others’ motivations push us towards
failure instead of success. We systematically fall victim to
subconscious thought processes that significantly influence our
behavior, even though our rational minds tell us they shouldn’t.
How many of us drive around looking for a close parking place
to “save time” for longer than it would have taken to walk from
the available parking spaces? How about falling into the trap of
spending $3,000 to upgrade to leather seats when we buy a
new $25,000 car, but finding it difficult to spend the same
amount on a new leather sofa (even though we know we will
spend more time on the sofa than in the car)? Are you willing to
take a pencil home from work for your children to use, but are
not willing to raid the company’s petty cash box for the money
to buy a pencil for the same purpose? These examples point to
how all of us are susceptible to irrationality when it comes to
decision making. 8
In the same way that the field of economics has been
transformed by an improved understanding of how uniquely
human social, cognitive and emotional biases lead to seemingly
irrational decisions,9 so too the practice of change management
is in need of a transformation through an improved
understanding of the irrational (often unconscious) way in
which humans interpret their environment and choose to act.
In what follows we will describe a number of counter-
intuitive insights regarding human irrationality and implications
for putting the four conditions for behavior change into place.
We will also offer practical – if inconvenient – advice (as it calls
for investing time and effort in areas that your rational mind will
tell you shouldn’t matter as much as they do) on how to
improve the odds of leading successful change. We illustrate
these approaches through concrete examples of how various
companies have, either by conscious awareness, intuition, or
simple luck, leveraged predictable employee irrationality to
great effect in making change happen.
Dealing with the human side of change is not easy. As
Nobel Laureate Murray Gell-Mann once said, “Think how hard
physics would be if particles could think.” All told, we don’t
expect our advice to make your life as a change leader any
easier. We are convinced, however, it will have more impact.
A. THE INCONVENIENT TRUTH ABOUT CREATING A
COMPELLING STORY
Change management thinking extols the virtues of creating a
compelling change story, communicating it to employees and
following it up with ongoing communications and involvement.
This prescription makes sense, but in practice three
inconvenient truths often get in the way of this approach
achieving the desired impact.
Inconvenient Truth #1: What motivates you doesn’t motivate
(most of) your employees.
We see two types of change stories consistently told in
organisations. The first is the “good to great” story along the
lines of “Our historical advantage has been eroded by intense
competition and changing customer needs; if we change, we
can regain our leadership position once again, becoming the
undisputed industry leader for the foreseeable future and
leaving the competition in the dust.” The second is the
turnaround story along the lines of, “We’re performing below
industry standard and must change dramatically to survive;
incremental change is not sufficient – investors will not
continue to put money into an underperforming company. We
are capable of far more based on our assets, market position,
size, skills and loyal staff. We can become a top quartile
performer in our industry by exploiting our current assets and
earning the right to grow.”
These stories both seem rational, yet they too often fail to
have the impact that change leaders desire. Research by a
number of leading thinkers in the social sciences, such as
Danah Zohar, Chris Cowen, Don Beck and Richard Barrett, has
shown that stories of this nature will create significant energy
for change in only about 20 percent of your workforce.10 Why?
The stories above all center on the company – beating the
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Performance

The inconvenient truth about change management:

Why it isn’t working and what to do about it

competition, industry leadership, share price targets, etc. – month, and the program went on to achieve 10 percent
when in fact research shows that there are at least four other efficiency improvements in the first year—a run rate far above
sources of meaning and motivation that can be tapped into to initial expectations.
create energy for change. These include impact on society (e.g.,
Inconvenient Truth #2: You’re better off letting them write
making a better society, building the community, stewarding
their own story
resources), impact on the customer (e.g., making it easier,
Well-intentioned leaders invest significant time in
superior service, better quality product), impact on the working
communicating their change story. Roadshows, town halls,
team (e.g., sense of belonging, caring environment, working
magazines, screen-savers and websites are but a few of the
together efficiently and effectively), and impact on “me”
many approaches typically used to tell the story. Certainly the
personally (my development, paycheque/bonus, empowerment
story (told in five ways!) needs to get out there, but the
to act).
inconvenient truth is that much of the energy invested in
The inconvenient truth about this research is that in surveys
communicating it would be better spent listening, not telling.
of hundreds of thousands of employees to discover which of
In a famous experiment, researchers ran a lottery with a
these five (society, customer, company/shareholder, working
twist. Half the participants were randomly assigned a lottery
team, “me” personally) sources of meaning most motivates
ticket. The remaining half were given a blank piece of paper
them, the result is a consistently even 20 percent split across all
and a pen and asked to write down any number they would
dimensions. Regardless of level (senior management to the
like as their lottery number. Just before drawing the winning
frontline), industry (healthcare to manufacturing), or geography
number, the researchers offered to buy back the tickets from
(developed or developing economies), the results do not
their holders. The question researchers wanted to answer is,
significantly differ.
“How much more do you have to pay someone who ‘wrote
This finding has profound implications for leaders. What the
their own number’ versus someone who was handed a number
leader cares about (and typically bases at least 80 percent of his
randomly?” The rational answer would be that there is no
or her message to others on) does not tap into roughly 80
difference (given a lottery is pure chance and therefore every
percent of the workforce’s primary motivators for putting extra
ticket number, chosen or assigned, should have the same
energy into the change program.
value). A more savvy answer would be that you would have to
Those people leading change should be able to tell “five
pay less (given the possibility of duplicate numbers in the
stories at once” and in doing so unleash tremendous amounts
population who write their own number). The real answer? No
of organisational energy that would otherwise remain latent in
matter what geography or demographic the experiment has
the organisation.
taken place in, researchers have always found that they have to
By way of practical example, consider a cost-reduction
pay at least five times more to those who wrote their own
program at a large US financial services company. The program
number.11
was embarked on with a rational change story that “ticked all
This result reveals an inconvenient truth about human
the boxes” of conventional change management wisdom. Three
nature: When we choose for ourselves, we are far more
months into the program, management was frustrated with the
committed to the outcome (almost by a factor of five to one).
employee resistance inhibiting impact. The team worked
Conventional approaches to change management
together to re-cast the “story” around the cost program to
underestimate this impact.
include an element related to society (to deliver “affordable
The rational thinker sees it as a waste of time to let others
housing”: we must be most affordable in our services),
self-discover what he or she already knows—why not just tell
customers (increased simplicity, flexibility, fewer errors, more
them and be done with it? Unfortunately this approach steals
competitive prices), the company (expenses are growing faster
from others the energy needed to drive change that comes
than revenues, which is not sustainable), working teams (less
through a sense of ownership of “the answer”. Consider another
duplication, more delegation, increased accountability, faster
practical example in Barclays’ Personal Financial Services CEO,
pace), and individuals (bigger, more attractive jobs created: a
David Roberts, who employed a fairly literal interpretation of
great opportunity to “make your own” institution).
the above finding. He wrote his change story in full prose, in a
This relatively simple shift in approach lifted employee
way that he found meaningful. He then shared it with his team,
motivation measures from 35.4 percent to 57.1 percent in a

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The inconvenient truth about change management:

Why it isn’t working and what to do about it

getting feedback on what resonated and what needed further continuous improvement);
clarification. 3. when did you last get coaching from your boss?
He then asked each of his team members to “write their (emphasising the importance of people development); and
own lottery ticket”: what was the change story for them, in their 4. who is the enemy? (emphasising the importance of “One
business, that supports the bigger PFS-wide change story? His Emerson”/ no silos, i.e., he wanted to emphasise the “right”
team members wrote their change story, again in full prose, and answer was the competition and not some other
shared it with their teams. Their teams gave feedback and then department!).
wrote their own story for their area/department, and so the On a final note, many executives are surprised not only by
process continued all the way to the frontline. It took twice as the ownership and drive for implementation that comes from
long as the traditional roadshow approach, but for a five-times high involvement approaches, but also by the improved quality
return on commitment to the program, it was the right of the answers that emerge. As one CEO told us, “I was
investment to make.12 surprised how people stepped up during the direction-setting
Sam Palmisano, current CEO of IBM, in spearheading a process – I was worried about everything getting ‘dumbed
change effort to move IBM towards a values-based management down,’ but in the end we got a better answer because of the
system, enabled thousands of employees to “write their own broad involvement.”
lottery ticket” regarding IBM’s values.
Inconvenient Truth #3: It takes both “+” and “–” to create real
During a three-day, online discussion forum (dubbed
energy
ValuesJam), over 50,000 employees were empowered literally
In 210 B.C., a Chinese commander named Xiang Yu led his
to rewrite IBM’s century-old values.13
troops across the Yangtze River to attack the army of the Qin
Other applications need not be so literal. At a global
(Ch’in) dynasty. Camped for the night on the banks of the river,
consumer goods company the CEO brought together his top
his troops awakened to find their ships on fire.
300 for three two-day “real work” sessions over three months
They rushed to the boats ready to take on their attackers,
where they created the story together. Again, this invested
only to find that it was Xiang Yu himself who had set their ships
significant time, but having the top 300 five-times committed to
ablaze. Not only that, but he had also ordered all the cooking
the way forward was considered well worth the investment. At
pots crushed. Xiang Yu’s logic was that without the pots and the
BP, to develop a comprehensive training program for frontline
ships, they had no other choice but to fight their way to victory
leaders, a decision was made to involve every key constituency
or die trying. In doing so he created tremendous focus in his
in the design of the program, giving them a sense of “writing
troops, who battled ferociously against the enemy and won
their own lottery ticket.” It took a year and a half to complete
nine consecutive battles, obliterating the mainforce units of the
the design using this model, but was well worth it. Now in
Qin dynasty.
implementation, the program is the highest rated of its kind in
The above story is perhaps the ultimate example of creating
BP. It involves more than 250 active senior managers from
a “burning platform” to motivate action – a message that says
across the businesses willingly teaching the course, and, most
“We’ve got a problem, we have to change!” This model is often
importantly, has resulted in managers who have been through
referred to as a deficit-based approach to change. It identifies
the training program being consistently ranked higher in
the problem (what is the need?), analyses causes (what is wrong
performance than those who haven’t, both by their bosses and
here?) and possible solutions (how can we fix it?), and then
by the employees who report to them.14
plans and takes actions (problem solved!). Advocates of this
At a minimum, we advocate that leaders leverage the
approach point out that its linear logic and approach to
“lottery ticket” insight by augmenting their telling of the story
dissecting things to understand them is at the heart of all the
with asking about the story. Consider David Farr, CEO of
scientific progress made by Western civilisation.
Emerson Electric, who is noted for asking four questions related
They also cite examples like that of Xiang Yu, where it has a
to his company’s story of virtually everyone he encounters in
profound effect. Given the case for the deficit-based approach,
the organisation:
it has become the model predominantly taught in business
1. how do you make a difference? (testing for alignment on the
schools and is presumably the default change model in most
company’s direction);
organisations. At success rates of 30%, however, the vast
2. what improvement idea are you working on? (emphasising

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Performance
The inconvenient truth about change management:
Why it isn’t working and what to do about it
majority of change leaders are not enjoying the same success as
Xiang Yu did.
Why is this?
Research has shown that a relentless focus on “what’s
wrong” is not sustainable, invokes blame and creates fatigue
and resistance, doing little to engage people’s passion and
experience, and highlight their success. This has led to the rise
of what many refer to as the constructionist-based approach to
change. In this approach the change process is based on
discovery (discovering the best of what is), dreaming (imagining
what might be), designing (talking about what should be) and
destiny (creating what will be).15
Consider a study done at the University of Wisconsin where
two bowling teams were recorded on video over a number of
games. Each team received a video to study. One team’s video
showed only those occasions when it made mistakes. The
other’s showed only those occasions when it performed well.
The team that studied its successes improved its score twice as
much as the other team. The conclusion is that choosing the
positive as the focus of inquiry and storytelling is the best
answer for creating change.16 Whereas the deficit-based change
approach is well suited for technical systems, research into the
constructionist-based approach shows that in human systems a
focus on “what’s right” can achieve improved results.
So should enlightened change leaders shift their focus
exclusively to capturing opportunities and building on strengths
instead of identifying and solving problems? We think not.
Humans are more risk averse when choosing among
options framed as “gains” than when they choose among those
framed as “losses.”
For example, what would you do if given the choice
between a sure gain of $100 and a 50 percent chance of
gaining $200? Social science experiments show that most
individuals are risk averse and take the gain. What would you
do if given the choice between a sure loss of $100 or a 50
percent chance of losing $200? If you are like most individuals,
you are risk seeking in this case and choose a 50 percent
chance of losing $200.17
A single-minded focus on “what’s possible,” with its bias
towards more conservative choices, flies in the face of
achieving radical change. The reason for this is that, as humans,
we inherently dislike losses more than we like gains.18
The inconvenient truth is that both the deficit based and
constructionist approaches to change have their merits and
limitations. It is clear that a single-minded focus on today’s
problems creates more fatigue and resistance than envisioning a
84
positive future. But it is also clear that when it comes to
behavioural change some anxiety is good, and that an over-
emphasis on the positive can lead to watered-down aspirations
and impact.
We believe the field of change management has drawn an
artificial divide between deficit-based and constructionist-based
approaches. The best answer is an “and” answer. While it is
impossible to prescribe generally how the divide should be split
between positive and negative messages, as this will be specific
to the context of any given change program, we strongly advise
managers not to “swing the pendulum” too far in one direction
or another. Consider Jack Welch at GE, who took questions of
“what’s wrong here?” (poor performing businesses, impending
bankruptcy, silo-driven behaviours, bureaucracy, etc.) head on,
as well as “imagining what might be” (number one or two in
every business, a “boundaryless” culture of quality, openness,
accountability, etc.).
Revisiting the University of Wisconsin bowling team
experiment mentioned above, we suspect that a team that
studied its successes and mistakes would outperform teams that
studied only either/or.
B. THE INCONVENIENT TRUTH ABOUT ROLE
MODELLING
Conventional change management suggests leaders should take
actions that role model the desired change and mobilise a
group of influence leaders to drive change deep into the
organisation.
Unfortunately, this prescription rarely delivers the desired
impact because it neglects two more inconvenient truths about
change management.
Inconvenient Truth #4: Your leaders believe they already “are
the change”
Most senior executives understand and generally buy into
Ghandi’s famous aphorism, “Be the change you want to see in
the world.”
They, often prompted by HR professionals or consultants,
commit themselves to “being the change” by personally role
modelling the desired behaviours. And then, in practice,
nothing significant changes.
The reason for this is that most executives don’t see
themselves as “part of the problem,” and therefore deep down
do not believe that it is they who need to change, even though
in principle they agree that leaders must role model the desired
changes. Take for example a team that reports that, as a group
RVA Yearbook 2009
Performance
The inconvenient truth about change management:
Why it isn’t working and what to do about it
and as an organisation, they are low in trust, not customer-
focused and bureaucratic. How many executives when asked
privately will say “no” to the questions, “Do you consider
yourself to be trustworthy?” and “Are you customer focused?”
and “yes” to the question “Are you a bureaucrat?” Of course,
none. The fact is that most well-intentioned and hard-working
people believe they are doing the right thing, or they wouldn’t
be doing it. However, most people also have an unwarranted
optimism in relation to their own behavior. Consider that 94
percent of men rank themselves in the top half of male athletic
ability. Of course this is irrational, as mathematically exactly 50
percent of males are in the top half of male athletic ability.
This isn’t only true for males and athletics – far more than
50 percent of people rank themselves in the top half of driving
ability, although it is a statistical impossibility. When couples
are asked to estimate their contribution to household work, the
combined total routinely exceeds 100 percent.
In many behavior-related areas, human beings consistently
think they are better than they are – a phenomenon referred to
in psychology as a “self-serving bias.”19 Whereas conventional
change management approaches surmise that top team role
modelling is a matter of will (“wanting to change”) or skill
(“knowing how to change”), the inconvenient truth is that the
real bottleneck to role modelling is knowing “what” to change
at a personal level.
Typically, insight into “what” to change can be created by
concrete 360-degree feedback techniques, either via surveys,
conversations or both. This 360-degree feedback should not be
against generic HR leadership competency models, but instead
against the specific behaviors related to the desired changes
that will drive business performance. This style of feedback can
be augmented by fact gathering such as third party observation
of senior executives going about their day-to-day work (e.g.,
“You say you are not bureaucratic, but every meeting you are in
creates three additional meetings and no decisions are made”)
and calendar analyses (e.g., “You say you are customer focused
but have spent 5 percent of your time reviewing customer-
related data and no time meeting with customers or
customer-facing employees”).
Consider Amgen CEO Kevin Sharer’s approach of asking
each of his top 75, “What should I do differently?” and sharing
his development needs and commitment publicly with them.20
Consider the top team of a national insurance company who
routinely employed what they called the “circle of fire” during
their change program: Every participant receives feedback live
in the room, directly from their colleagues on “What makes you
great?” in relation to “being the change” and “What makes you
small?” Consider the leadership coalition (top 25) of a multi-
regional bank who, after each major event in their change
program, conducted a short, targeted 360-degree feedback
survey regarding how well their behaviours role modelled the
desired behaviours during the event, ensuring that feedback
was timely, relevant and practical.
While seemingly inconvenient, these types of techniques
help break through the “self-serving bias” that inhibits well-
meaning leaders from making a profound difference through
their actions to the ultimate impact of the change program.
Note that some readers may be thinking, “But surely there
are a few people who are fully role modelling the desired
behaviours – what does this mean for them?” If the purpose of
senior executive role modelling is to exhibit the behaviours
required that ensure the success and sustainability of the
change program (e.g., collaboration, agility in decision making,
empowerment), then the answer is “keep up the good work!” If
the answer, however, is expanded to include role modelling the
process of personal behavioural change itself, there is more to
do. Recall that Gandhi also said famously, “For things to
change, first I must change.”
We often cite Tiger Woods’ reaction to his astonishing, 18-
below-par victory in the Masters tournament in 1997: he chose
to rebuild his swing. As he practiced many of its 270 elements,
he endured a period of awkward performance. The press
deemed him a one-Masters wonder. Four years later, he won
the world’s four major golf tournaments in one year, an
unprecedented accomplishment. At one point, Woods’ lead
over the second-ranked player was larger than the gap between
No. 2 and No. 100.21 The lesson is clear: continued success
requires critical self-examination and growth. Few senior
executives would suggest they are less in need of personal
learning than Tiger Woods.
Inconvenient Truth #5: Influence leaders aren’t that influential
Almost all change management literature places importance on
mobilising a set of “influence leaders” to help drive the change.
Typically guidance is given to find and mobilise those in the
organisation who either by role or personality (or both) have
disproportionate influence over how others think and behave.
We believe this is sound and timeless advice – indeed having a
cadre of well-regarded people proactively role modelling and
communicating the change program is a “no regrets” move.
However, since Malcom Gladwell popularised his “law of the
few” in his best-selling book, The Tipping Point, we have
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The inconvenient truth about change management:
Why it isn’t working and what to do about it
observed that the role of influence leaders has moved from
being perceived as a helpful element of a broader set of
interventions to a panacea for making change happen (likely an
unintended consequence of Gladwell’s work which itself was
directed towards marketers versus change leaders). Gladwell’s
“law of the few” suggests that rare, highly connected people
shape the world. He defined three types of influence leaders
that are among this select group: Mavens – discerning
individuals who accumulate knowledge and share advice;
Connectors – those who know lots of people; and Salespeople –
those who have the natural ability to influence and persuade
others.
Gladwell famously illustrates his point with the example of
Hush Puppies. The footwear brand was dying by late 1994 –
until a few New York hipsters began wearing their shoes. Other
fashionistas followed suit, whereupon the cool kids copied
them, the less-cool kids copied them, and so on, until voilà!
Within two years, sales of Hush Puppies had exploded by 5,000
percent, without a penny spent on advertising.22 Compelling
stories such as this have been interpreted by many change
leaders as evidence that the lion’s share of their role should
focus on getting the influence leader equation right and – voilà!
– all else will follow.
Duncan Watts, a network-theory scientist working for
Yahoo!, has conducted a number of experiments that help
explain why “influence leaders” are not the panacea the above
example implies. In the context of the Hush Puppies story, he
essentially posed the more expansive question, “Given East
Village hipsters were wearing lots of cool things in the fall of
1994, why did only Hush Puppies take off? Why didn’t their
other clothing choices reach a tipping point too?” His research
shows that influence leaders are no more likely to start a social
“contagion” than the rank and file. He concludes that success
depends less on how persuasive the “early adopter” is, and
more on how receptive the “society” is to the idea. To start a
social epidemic is less a matter of finding the mavens,
connectors, and salespeople to do the infecting and more a
matter of developing the “virus” that society is a fertile
spreading ground for.
Watts suggests a better metaphor than a virus – a forest
fire – for the way social influence really works. There are
thousands of forest fires a year, but only a few become roaring
monsters. Why?
Because in those rare situations the landscape is ripe: sparse
rain, dry woods, badly equipped fire departments. In these
situations, no one will go around talking about the exceptional
86
properties of the random smoker who unwittingly tossed a
smoldering cigarette butt into a patch of parched grass in the
middle of a forest during a drought.23
The inconvenient truth is that it is not enough to invest in a
few rather than in many as a way of catalysing desired changes,
no matter how appealing the idea is. We warn against
overestimating the impact a group of influence leaders can have
and, in turn, overinvesting in them in a world of scarce resource
(time, money, people). We advocate that change leader
attention should be balanced across all four conditions for
change – a compelling story, role modelling, reinforcement
systems, and the skills required for change – to ensure they are
reinforcing in ways that maximise the probability of the change
“spark” taking off like wildfire across the organisation.
C. THE INCONVENIENT TRUTH ABOUT
REINFORCING MECHANISMS
Conventional change management emphasises the importance
of reinforcing and embedding desired changes in structures,
processes, systems, target setting and incentives. If you want
collaboration, create cross-functional teams. If you want
customer focus, make sure your systems give you a full picture
of the customer relationship.
If you want just about any behavior, make people’s
paycheque dependent on it, and so the logic goes. Again, these
are all perfectly rational until confronted with two inconvenient
truths.
Inconvenient Truth #6: Money is the most expensive way to
motivate people
Upton Sinclair once wrote, “It is difficult to get a man to
understand something if his salary depends upon him not
understanding it.”24 If a change program’s objectives are not
linked somehow to employee compensation, this sends a strong
message that the change program is not a priority, and
motivation for change is adversely affected. The flip-side,
however, is not true.
When change program objectives are linked to
compensation, motivation for change is rarely meaningfully
enhanced. The reason for this is as practical as it is
psychological in nature. Consider the change manager who is
working to link the change program with compensation.
He or she is faced with existing executives’ annual
compensation plan that is typically comprised of three
elements: a portion dependent on how the corporation does
(typically an earnings or return on capital number for the whole
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The inconvenient truth about change management:
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company), a portion dependent on how the leader’s specific
business or function does, and a portion dependent on
individual goals, often related to operations or people.
The rational change manager dutifully builds change-
program impact into earnings forecasts and business
unit/functional financial operating plans. Come review time,
however, he/she realises that with the myriad of controllable
and uncontrollable variables that influence the financial
outcomes, the link to specific change program implementation
becomes weak at best.
Operational (non-financial) impact from change program
implementation creates a stronger link to outcomes and
individual efforts. Unfortunately, however, the weighting of
non-financial outcomes from the change program in the context
of the vast array of other metrics also “linked” to rewards (e.g.,
compliance, safety, social responsibility, diversity, talent
development, leadership competencies) renders any link to
compensation hardly relevant.
The reality is that in the vast majority of companies it is
exceedingly difficult to meaningfully link a change program to
individual compensation. So why not just change the
compensation approach? This is of course an option, but easier
said than done and certainly not without risk and potential
unintended consequences when considering that change must
happen in real time—the organisation must continue to carry
out its day-to-day tasks and functions while at the same time
fundamentally rethinking them. The good news is that there are
easier, relatively inexpensive ways to use incentives to motivate
employees for change.
In one study, researchers gave people a tiny gift and
measured the increase in satisfaction with their lives.
Specifically half of a group of people who used a photocopier
found a dime in the coin return. How much did the gift
increase their satisfaction with their lives? When asked about
how satisfied they were with their lives, those with the dime
were 6.5 on a 7 scale whereas those without were only 5.6.25
Why such a lift in satisfaction for such little reward? For human
beings it holds that satisfaction equals perception minus
expectation (an equation often accompanied by the
commentary, “reality has nothing to do with it”). The beauty of
this equation for change managers is that small, unexpected
rewards can have disproportionate effects on employees’
“satisfaction” with a change program.
Gordon M. Bethune, while turning around Continental
Airlines, sent an unexpected $65 check to every employee
when Continental made it to the top 5 for on-time airlines. John
McFarlane of ANZ Bank sent a bottle of champagne to every
employee for Christmas with a card thanking them for their
work on the company’s “Perform, Grow and Breakout” change
program. The CEO of a large multi-regional bank sent out
personal thank-you notes to all employees working directly on
the company’s change program to mark its first-year
anniversary. Most change managers would refer to these as
merely token gestures and argue that their impact is limited and
short-lived.
Employees on the receiving end beg to differ. Recipients of
these “dime in the photocopier” equivalents consistently report
back that the rewards have a disproportionately positive impact
on change motivation that lasts for months, if not years.
The reason these small, unexpected rewards have such
impact is because employees perceive them as a “social
exchange” with the company versus a “market exchange.” To
understand the difference, consider the following: Assume you
are at your mother-in-law’s house for Thanksgiving dinner. She
has spent weeks planning the meal and all day cooking. After
the meal you thank her and ask her how much you should pay
for the experience. What would her reaction be? Most people
report that their mother-in-law would be horrified and the
relationship damaged as a result.
Why? The offer of money takes the interaction from a social
norm, built around a reciprocal, long-term relationship, to a
market norm that is more transactional and shallow. Back to
your mother-in-law, would she have accepted a nice bottle of
wine for the table as a gift from you?
Likely yes, as small, unexpected gifts indicate that social
norms are at play.26 Consider the study of a daycare centre
where a $3 fine was imposed for parents picking up their
children late. When the fine went into place, incidents of late
pickups went through the roof. Why? Before the fine was
imposed, the daycare staff and the parents had a social
contract – for the parents, feeling guilty about being late
compelled them to be more prompt in picking up their kids.
Once the fine was imposed, the daycare centre had
inadvertently replaced social norms with market norms. Free
from feelings of guilt, parents frequently chose to be late and
pay the fee (certainly not what the centre had intended!).27
When it comes to change, social norms are not only
cheaper than market norms, but often more effective as well. By
way of example, consider the AARP (American Association of
Retired Persons) which asked some lawyers if they would offer
less expensive services to needy retirees, at something like $30
an hour. The lawyers said no. Then the program manager from
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The inconvenient truth about change management:
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AARP had the idea to ask the lawyers if they would offer free
services for needy retirees.
Overwhelmingly, the lawyers said yes. When compensation
was mentioned the lawyers applied market norms and found
the offer lacking. When no compensation was mentioned they
used social norms and were willing to volunteer their time.28
Inconvenient Truth #7: A fair process is as important as a fair
outcome
Consider a bank which, as part of a major change program,
diagnosed that its pricing did not appropriately reflect the credit
risk that the institution was taking on. New risk-adjusted rate of
return (or RAROC-based) models were created, and the
resulting new pricing schedules delivered to the frontline. At the
same time, sales incentives were adjusted to reward customer
profitability versus volume. The result? Customer attrition (not
only of the unprofitable ones) and price over-rides went through
the roof and, ultimately, significant value was destroyed by the
effort. The rational change manager scratches his or her head in
confusion wondering, “What went wrong?”
“Ultimatum games” offer a compelling example of the
inconvenient truth at play here. Give a stranger $10. Tell them
they must split the money with another stranger however they
wish. If the person accepts the offer, the money is split. If they
reject the offer, no one gets any money. Studies show that if the
offer is a $7.50/$2.50 split, more than 95 percent will reject it,
preferring to go home with nothing than to see someone
“unfairly” receive three times as much as they do.29 You may be
thinking to yourself that with a total pie of $10 to share,
unequal allocations are rejected only because the absolute
amount of the offer is low.
Seemingly irrationally, however, the “ultimatum game”
findings are the same even when the absolute amount of the
offer is equivalent to two weeks of wages.30 The inconvenient
truth is that employees will go against their own self-interest
(read: incentives) if the situation violates other notions they
have about the way the world should work, in particular, in
relation to fairness and justice. In the case of the banking price-
rise example described above, whether right or wrong, the
frontline view of the pricing and incentive changes was that
they were unfair to the customer, a symbol of increasingly
greedy executives losing sight of customer service. Even though
it meant they were less likely to achieve their individual sales
goals, a significant number of bankers vocally bad-mouthed the
bank’s policies to customers, putting themselves on the
customer’s side, rather than the bank’s.
88
Where possible, price over-rides were then used to show
good faith to customers and inflict retribution on the “greedy”
executives.
In making any changes to company structures, processes,
systems and incentives, change managers should pay an
unreasonable amount of attention to employees’ sense of the
fairness of the change process as well as the outcome.
Particular care should be taken where changes effect how
employees interact with one another (headcount reductions,
changes to processes such as talent management, annual
planning, etc.) and with customers (sales stimulation programs,
call centre re-designs, pricing, etc.). Ironically, in the pricing
example described above, the outcome is inherently fair
(customers are asked to pay commensurate to the risk the bank
is taking on), and therefore the downward spiral described
could have been avoided (and has been by other banks
adopting RAROC-based pricing) by carefully tending to
employees’ perceptions of fairness in the communications and
training surrounding the changes.
D. THE INCONVENIENT TRUTH ABOUT CAPABILITY
BUILDING
Conventional change management emphasises the importance
of building the skills and talent needed for the desired change
to be successful and sustainable. Though hard to argue with, in
practice there are two more inconvenient truths that demand
attention if one is to successfully build the needed capabilities.
Inconvenient Truth #8: Employees are what they think
Many managers believe in their heart of hearts that the “soft
stuff” – employees’ thoughts, feelings and beliefs – has no place
in workplace dialogue. “All that matters is that they behave in
the ways I need them to; it doesn’t matter why,” they will say.
While rational – behaviours drive performance after all – this
view misses the point that it is employees’ thoughts, feelings
and beliefs that drive their behaviours. Ignoring the underlying
mindsets of employees during change is to address symptoms
rather than root causes.
Consider an analogy from operations management. When a
motor burns out on a machine on the shop floor it is replaced,
right? Effective managers will only replace the engine once the
root causes are known: “Why did the motor burn out?” Because
it overheated. “Why did it overheat?” Because it was
insufficiently ventilated. “Why was it insufficiently ventilated?”
Because the machine is too close to the wall. The operator then
moves the machine away from the wall and replaces the motor.
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The inconvenient truth about change management:
Why it isn’t working and what to do about it
Not doing so would mean the fix would be short-lived (the new
motor would have quickly burned out too, due to the lack of
ventilation). A far better solution is achieved by addressing the
root cause.
Let’s see how this applies to change management. Consider
a bank that through a benchmarking exercise found that its
sales per banker were lagging the competition. “Why are sales
per banker lower?” the rational manager asks. Analysis shows
bankers are not spending enough time with customers. “Why
aren’t they spending more time with customers?” Because a
significant amount of their time is spent completing paperwork.
With this diagnosis the bank set about reengineering the loan-
origination process to minimise paperwork and maximise
customer-facing time. Not only that, bankers are provided with
new sales scripts and easier-to-use tools so that they’ll know
what to do with the extra time in front of the customer. Training
on the new processes and tools is administered and, voilà,
problem solved. Except for the fact that six months later, the
levels of improvement are far lower than envisioned.
What went wrong? A further investigation into “why”, with
an eye to the bankers’ mindsets, provides a much fuller view of
the root causes: Is there anything about how they think and
feel, or what they believe about themselves and their jobs, that
explains why they wouldn’t be spending more time with
customers? Faced with a stalled improvement program, the
bank in question proceeded down this line of inquiry.
They quickly found that most of the bankers in question
simply found customer interactions uncomfortable and
therefore actually preferred paperwork to interacting with
people (and, in turn, created reasons not to spend time with
customers). This was driven by a combination of introvert
personalities, poor interpersonal skills and a feeling of
inferiority when dealing with customers who by and large have
more money and education than they do. Furthermore,
supervisors (who had mostly been recruited from the banker
ranks) were also insecure with their selling and interpersonal
skills, and therefore placed more emphasis on managing paper-
based activity, further exacerbating the problem. Finally, most
bankers loathed to think of themselves as “sales people” – a
notion they perceived as better suited to employees on used-car
lots than in bank branches. Efforts to create “more sales time”
flew directly in the face of their vocational identity.
Armed with these root-cause insights, the bank’s change
program was enhanced to directly address the mindset
challenges as well as the process and tool barriers. Training for
bankers and supervisors was expanded to include elements
related to personality types, emotional intelligence and
vocational identity (recasting “sales” as the more noble pursuit
of “helping customers discover and fulfill their unarticulated
needs”). This enhancement not only put the program back on
track within six months, but also ultimately delivered
sustainable sales lifts in excess of original targets.
Those skeptical of the importance of mindsets are
encouraged to consider the Roger Bannister story. Until 1954,
the four-minute mile was considered to be beyond human
achievement. Medical journals of the day went so far as to
declare it an impossible “behaviour.” In May of that year,
however, Roger Bannister broke this barrier, running the mile in
3 minutes, 59.4 seconds. What is perhaps more amazing is that
two months later it was broken again, by Australian John Landy.
And within three years, 16 other runners had also broken
this record. What happened? A sudden spurt in human
evolution? Genetic engineering of a new super race of runners?
Of course not. It was the same human equipment, but with a
different mindset – one that said “this can be done.”
Bannister emphasises in his memoirs that he spent as much
time conditioning his mind as he did conditioning his body. He
wrote, “the mental approach is all important … energy can be
harnessed by the correct attitude of mind.”31
While perhaps inconvenient, when it comes to building
capabilities required for change, we believe a balance should
be struck between building technical skills and shifting
underlying mindsets (to enable the technical skills to be used to
their fullest).
Inconvenient Truth #9: Good intentions aren’t enough
It is well documented that after three months adults retain only
10 percent of what they have heard in lecture-based training
sessions (e.g., presentations, videos, demonstrations,
discussions). When they learn by doing (e.g., role plays,
simulations, case studies), 65 percent of the learning is retained.
And when they practice what they have learnt in the workplace
for a number of weeks, almost all of the learning can be
expected to be retained.32 Accordingly, effective skillbuilding
programs are replete with interactive simulations and role plays
to ensure time spent in the training room is most effective.
Further, commitments are made by participants regarding what
they will “practice” back in the workplace (“My Monday
morning takeaway is …”) to embed the learnings. This is all
well and good, except that come Monday morning, very few
keep their commitments.
Consider a social science experiment at a Princeton
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The inconvenient truth about change management:

Why it isn’t working and what to do about it

theological seminary. Students were asked a series of questions
about their personality and level of religious commitment and
then sent across campus. Along the way, they met a person
slumped over coughing and groaning and asking for medical
assistance. Did self-proclaimed nice people help more?
Absolutely not. Neither did religious commitment correlate to
who provided help. The only predictor of the seminarians’
behavior was that half were made to think they were late for an
appointment across campus, while the others believed they had
plenty of time. Sixty-three percent with spare time helped, as
opposed to just 10 percent of those in a hurry. When short of
time, even those with “religion as a quest” did not stop to
help.33
Given this aspect of human nature, it is unreasonable to
expect that most employees will genuinely practice new skills
and behaviors back in the workplace if nothing formal has been
done to lower the barriers to doing so. The time and energy
required to do something additional, or even to do something
in a new way, simply don’t exist in busy executives’ day-to-day
schedules.
Ironically, this is particularly the case in the days following
training programs, when most managers are playing catch-up
from their time away. This failure to formalise and create the
space for practice back in the workplace dooms most training
programs to deliver returns that are at best 65 percent of their
potential.
We advocate a number of enhancements to traditional
training approaches to “hardwire” day-to-day practice into
capability-building processes. First, training should not be a
one-off event.
Instead, a “field and forum” approach should be taken, in
which classroom training is spread over a series of learning
forums, and fieldwork is assigned in between. Second, we
suggest creating fieldwork assignments that link directly to the
day jobs of participants, requiring them to put into practice new
mindsets and skills in ways that are “hardwired” into the things
for which they are accountable. These assignments should have
quantifiable, outcome-based measures that indicate levels of
competence gained, and certification that recognises and
rewards the skills attained.
Consider one company’s approach to building lean
manufacturing capabilities. The first forum offered a core of
basic skills and mindsets in performance improvement.
Fieldwork then followed, involving cost, quality and service
improvement targets over a three-month period.
Anyone delivering on these targets was awarded a green-
belt certification in lean. The next forum provided much deeper
technical system design skills and project and team leadership
training.
The fieldwork that followed involved participants
redesigning entire areas of the plant floor and overseeing a
portfolio of specific improvement teams – all aspects of which
had quantitative targets (both in terms of financial results, and
people and project leadership in 360-degree evaluations).
Anyone achieving their fieldwork targets then became a black
belt in lean. The final forum built more advanced skills in
shaping plant-wide improvement programs in the context of
pressing strategic issues, applying improvement concepts to
more complex operations, and coaching and mentoring others.
Fieldwork again put these lessons into practice with quantitative
improvement goals attached, resulting in a set of “master black
belts” emerging from the program.
SHOW ME THE MONEY!
So far, we have tested the incremental impact of applying these
inconvenient truths in practice above and beyond more
conventional approaches to influencing behavior in three
longitudinal studies. Each study has employed control versus
experimental group methodologies (comparing impact with like
customer and employee demographics, ensuring minimal
distortions of trial over a one-year test period). In each of these
cases, the results have been profound.
In retail banking, for example, applying conventional
change management approaches in a salesforce stimulation
program achieved an 8 percent lift in profit per business banker
and 7 percent per retail banker. While respectable, this was
below management aspirations of achieving a 10 percent lift in
both areas. Where inconvenient truths were acted on beyond
conventional change management approaches, however, the
program achieved a 19 percent lift in profit per business banker
and 12 percent per retail banker, far exceeding management’s
expectations.34
In the call centres of a large telecommunications company,
the results of a customer churn reduction program applying
conventional change management approaches resulted in 35
percent churn reduction, falling short of management’s
aspiration of a 50 percent reduction. Acting on the
inconvenient truths, however, delivered 65 percent churn
reduction to the delight of management, employees and
customers.
An insurance back office which had implemented lean
operations improvements found that performance six months

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after the “step change” was stagnant, not fulfilling the
continuous improvement expectations of the program.
Revamping the program to leverage inconvenient truths, the
company has now posted more than two years of 5 percent
improvement (above and beyond the step change) in cost,
quality and service, exceeding the 3 percent continuous
improvement target built into the budget.
As mentioned above, we acknowledge that our research
into the impact of applying approaches based on the
inconvenient truths about change management is still in its
relatively early days by virtue of the fact that sustainable impact
can only be measured over a number of years. The longitudinal
examples mentioned above, however, give us confidence and
motivation to broadly share the thinking above.
***
David Whyte once wrote, “Work, paradoxically, does not
ask enough of us, yet exhausts the narrow part of us we bring to
the door.”35 Our research and experience has led us to believe
that the impact of conventional change management thinking is
held back by exactly this paradox. More activity is undertaken,
less energy is tapped into, and ultimately change impact is
disappointing.
By acting on the inconvenient truths discussed above,
Whyte’s paradox is at least in part resolved by tapping into
motivations that are uniquely human. In doing so, tremendous
individual and organisational energy for change is unleashed.
End Notes
1. Kotter, John, “Leading Change: Why Transformation Efforts Fail”, Harvard Business Review, March–April 1995, p 1.
2. For a list of about 100 highly recommended books on change management see Nickols, Fred, 2006.
http://www.managementlogs.com/2006/04/change-management-books.html. As of March 7, 2008, Amazon had
1,861 books listed under the official category “organizational change” and 8,604 books under the category of
“change.”
3. Examples include Harvard: “Managing Change”, Michigan: “Navigating Change”, MIT: “Planning and Managing
and Change”, Duke: “Human Assets and Organizational Change”, Columbia: “Organizational Change”, IMD
(Switzerland): “Managing Change”, London Business School (U.K.): “Managing Change”, INSEAD (France/Singapore):
“Leadership & Change”, ESADE I (France): “Change Management”, Queens University (Canada): “Strategy
Implementation & Change Management.”
4. Isern, Joseph and Pung, Caroline, “Organizing for successful change management: A McKinsey global survey”, The
McKinsey Quarterly, June 2006.
5. In 2002, D. Miller reported that 70 percent of change programs fail in “Successful change leaders: what makes
them? What do they do that is different?”, Journal of Change Management, 2(4), pp 359–68. In 2005, M. Higgs and
D. Rowland reported that, “Only one in four or five change programs actually succeed” in “All Changes Great and
Small: Exploring Approaches to Change and its Leadership”, Journal of Change Management, 5(2), pp 121–51.
6. Composite data from a number of sources that indicate that the reason change programs fail is due to employee
resistance or management behavior come from the following sources: ed. Michael Beer and Nitin Nohria, Breaking
the Code of Change, Harvard Business School Press, 2000; Cameron, Kim S. and Quinn, Robert E., Diagnosing and
Changing Organizational Culture: Based on the Competing Values Framework, Addison-Wesley, 1999; Caldwell,
Bruce , “Missteps, Miscues: Business Re-engineering Failures Have Cost Corporations Billions, and Spending Is Still
on the Rise,” Information Week, June 20, 1994; “State of Re-engineering Report (North America and Europe),” CSC
Index, 1994; Goss, Tracy, Tanner Pascale, Richard and Athos, Anthony G., “The Reinvention Roller Coaster: Risking
the Present for a Powerful Future,” Harvard Business Review, 71, 1998; John P. Kotter and James L. Heskett, Corporate
Culture and Performance, Free Press, 1992.
7. Price, Colin and Lawson, Emily, “The Psychology of Change Management,” The McKinsey Quarterly, 2003,
Number 2, Special Edition: Organization.
8. The leather seats and red pencil examples have been borrowed Ariely, Dan, Predictable Irrationality: The Hidden
Forces that Shape Our Decisions, Harper Collins, 2008, p. 20 and p. 218.
9. Behavioral economics and behavioral finance are closely related fields which apply scientific research on human
and social cognitive and emotional biases to better understand economic decisions and how they affect market
prices, returns and the allocation of resources. Daniel Kahneman with Amos Tversky and others, established a
cognitive basis for common human errors using heuristics and biases (Kahneman & Tversky, 1973, Kahneman, Slovic
& Tversky, 1982), and developed Prospect theory (Kahneman & Tversky, 1979). He was awarded the 2002 the Nobel
Prize in Economics for his work in Prospect theory as a psychologically realistic alternative to expected utility theory.
10. See Zohar, Danah, Rewiring the Corporate Brain: Using the New Science to Rethink How We Structure and Lead
Organizations, Berrett-Koehler, 1997; Barret, Richard, Liberating the Corporate Soul: Building a Visionary
Organization, Elsevier, 1998; and Beck, Don and Cowan, Christopher, Spiral Dynamics: Mastering Values,
Leadership, and Change, Blackwell Business, 1996.
11. Lottery tickets study as described in, Langer, Ellen J., “Chapter 16: The Illusion of Control” in Daniel Kahneman,
Paul Slovic and Amos Tversky, eds., Judgment under Uncertainty: Heuristics and Biases, Cambridge University Press,
1982.
12. See Barclays’ Personal Financial Services CEO David Roberts, “Easy to Do Business With: The Way Ahead for
PFS,” April 2002, London, England: Barclays, Reg. # 1026167.
13. Hemp, Paul; Palmisano, Samuel J. and Stewart, Thomas A., “Leading Change When Business Is Good: The HBR
Interview – Samuel J. Palmisano,” Harvard Business Review, December 2004.
14. Priestland, Andreas and Hanig, Robert, “Development of First-Level Leaders,” Harvard Business Review, June
2005.
15. This juxtaposition of the deficit-based and constructionist-based approaches to change is taken directly from
Bernard J. Mohr and Jane Magruder Watkins, The Essentials of Appreciative Inquiry, Pegasus, 2002.
16. University of Wisconsin research as cited in Bernard J. Mohr and Jane Magruder Watkins, The Essentials of
Appreciative Inquiry, Pegasus, 2002.
17. Risk-taking research cited in Terry Burnham and Jay Phelan, Mean Genes, Perseus, 2000.
18. For further evidence that humans are ‘irrational’ loss avoiders, see Kahneman, D. and A. Tversky, “Choices,
Values, and Frames,” American Psychologist 39, no. 4 (1984): 341-50.
19. Stock Investment,” Quarterly Journal of Economics, 2001. Ross, M. and F. Sicoly, “Egocentric Biases and
Availability and Attribution,” Journal of Personality and Social Psychology 37 (1979): pp 322-336. Svenson, O., “Are
We All Less Risky and More Skillful Than Our Fellow Drivers?” Acta Psychologica 47 (1981): pp 143-148.
20. McKinsey & Company Organization Practice, Building Exceptional Leadership Strength, 2005.
21. Note that in an interview with Time magazine published August 14, 2000, looking back on his decision, he told
writer Dan Goodgame: “I know I wasn’t in the greatest position with my swing at the [1997] Masters. But my timing
was great, so I got away with it. And I made almost every putt. You can have a wonderful week like that even when
your swing isn’t sound. But can you still contend in tournaments with that swing when your timing isn’t as good? Will
it hold up over a long period of time? The answer to those questions, with the swing I had, was ‘no’. And I wanted to
change that.” Rankings reported by Harig, B., “Wood ‘Uncomfortable’ with his Game,” ESPN.com, April 26, 2004.
22. Gladwell, Malcolm, The Tipping Point: How Little Things Can Make a Big Difference, Little Brown, 2000.
23. Thompson, Clive, “Is the Tipping Point Toast?” Fast Company, February 2008.
24. Sinclair recalled this statement from his 1934 California gubernatorial campaign speeches in his memoir, I,
Candidate for Governor, and How I Got Licked, Farrar & Rinehart, 1935, p 109.
25. The dime in the photocopier study, Schwarz, Norbert, Stimmung als Information : Untersuchungen zum Einfluss
von Stimmungen auf die Bewertung des eigenen Lebens, Springer, 1987, pp 12–13.
26. The ‘mother-in-law’ example has been borrowed Ariely, Dan, Predictable Irrationality: The Hidden Forces that
Shape Our Decisions, Harper Collins, 2008, p. 72.
27. Dubner, Stephen J., Levitt, Steven D., Freakonomics: A Rogue Economist Explores the Hidden Side of Everything,
Doubleday, 2005, p. 19.
28. Ariely, Dan, Predictably Irrational: The Hidden Forces that Shape Our Decisions, Harper Collins, 2008: p. 71.
29. The seminal ultimatum game study is by Guth Werner, Rolf Schmittberger and Bernd Schwarze, “An Experimental
Analysis of Ultimatum Bargaining,” Journal of Economic Behavior and Organization, December 1982, 3(4), pp 367–
88. Note that new ultimatum game research in the field of neuroeconomics shows us exactly what part of the brain
operates the bilateral anterior insula (not part of the prefrontal cortex) in rejecting small offers (As reported by Sanfey,
A.G., K.K. Rilling, et al., “The Neural Bais of Economic Decision-Making in the Ultimatum Game,” Science 300
(2003): pp 1755-1758.
30. Cameron, Lisa, “Raising the stakes in the ultimatum game: experimental evidence from Indonesia,” Economic
Inquiry 1999,
37(1), pp 47–59; This assumption was also tested t by having U.S. participants play the game for $100. They found no
difference between play for $100 and play for $10 as reported in Hoffman, E., K. McCabe, et al., “On Expectations
and the Monetary Stakes in Ultimatum Games,” International Journal of Game Theory 25 (1996): pp 289-301
31. Bannister, Roger, The Four-Minute Mile, Guildford: The Lyons Press, 1981, p 210.
32. IBM research; Whitmore, “Coaching for Performance.”
33. Darley, J. M. and Batson, C.D., “From Jerusalem to Jericho: A study of situational and dispositional variables in
helping behavior,” Journal of Personality and Social Psychology, 1973, 27(1), pp 100–108.
34. Experimental and control group clusters of bank branches were chosen that matched each other and the
organizational average on the following dimensions: Performance: NPBT (growth and average over longest coherent
period available), economics of customers, average income per customer, industry composition in business banks
(split between service and manufacturing industry), and characteristics of centers; Staff: performance rating, tenure
(+2.5 years min.); and Size: footings per banker. During the study we ensured no distortions of trial occurred in terms
of change of management, restructuring of operations, test of other initiatives in an incomplete subset of trial
participants. Performance was compared over 1 year between three groups: 1) No intervention, 2) Salesforce
effectiveness improvement program with “rational” change management interventions, 3) Salesforce effectiveness
improvement program with “rational” change management interventions. This approach is illustrative of all
longitudinal studies mentioned.
35. Whyte, David, The Heart Aroused: Poetry and the Preservation of the Soul in Corporate America, Doubleday
Currency, 1996, pp. 22
Scott Keller (scott_keller@mckinsey.com) is a Partner in
McKinsey & Company’s Chicago Office. He leads McKinsey’s
Organizational Behavior Practice in the Americas and has
deep experience in counselling senior executives on
organization performance and change effectiveness.
Also from McKinsey & Company is Carolyn Aiken
(carolyn_aiken@ mckinsey.com), is an Associate Principal in
McKinsey’s Organization Practice based in the Toronto Office
who has pioneered innovative approaches to CEO, top-team
and organization-wide change effectiveness.
91
RVA Yearbook 2009
Performance
Achieving Culture Change
(and Realising the Benefits)
Jennie Sheppard evaluates the recent focus on organisational culture and
whether it marks a fundamental difference.
Organisational Culture
• Current fad?
• Flavour of the month?
• Or meaningful driver of performance?
We’ve had:
• TQM (aka Total Quality Management)
• Learning Organisations
• MBO (aka Management by Objectives)
• Self-Empowered Teams
• Matrix Management
• BPR (aka Business Process Re-engineering) and more.
The past 10 years have been the era of “triple bottom-line”
and organisational culture.
• What is Organisational Culture?
• Can you really change the culture of your organisation?
• Will it make any difference anyway?
It’s just not working
You developed your organisation’s Vision. It’s catchy, and you
spent lots of time and money in “cascading that vision”
throughout your organisation to ensure everyone knows what it
is and understands what it means.
You compiled a set of Organisational Values – developed
through a heap of workshops where everyone “signed on” to
them. These Values, after extensive wordsmithing, are even
framed and hung on the walls in your workplaces, used as
screen-savers and every staff member has a coffee mug with
the values inscribed on them.
You even restructured the organisation to ensure the
structure is aligned with your organisation’s vision and
direction.
Then you waited … and waited … and waited … all to no
avail – things are pretty much the same as last year. What went
wrong?
The Power of Culture
You missed the power of the culture – the way we do things
around here – the all-powerful norms that drive the way people
in your organisation work and how they interact with each
other and your customers/clients.
Most of the time, people are not consciously aware of these
norms and whether or not they are helping or hindering their
performance.
Ask any group of long-serving staff what the norms are in
92
their organisation and they will stare at you blankly. In their
heads they will be thinking, “What on earth are you talking
about? We don’t have ‘norms’; we just go about doing our
work the way we need to. How else could we possibly do
things?”
Then ask staff who have been in your organisation less than
6 months and they will quickly list off a host of norms they
have observed – some positive, some funny and some
downright scary!
These norms, the reasons for which are usually long
forgotten, create the culture of your organisation.
Changing the Culture
So, how do we change the culture? How do we change these
norms that have developed over a long time and have a history
and life of their own?
1. Know How You Are
Firstly, you need to know how you are and what sort of culture
you’re dealing with:
• Understand what your culture is and how it impacts
performance – make the implicit and unconscious norms
explicit and conscious.
• Use a rigorous measure to create a baseline from which to
determine any changes.
• Build a shared understanding of what you are dealing with.
2. Agree How You Want To Be
• Build a shared view of the organisational culture you NEED
in order to maximise performance.
• Identify the gaps between where our culture is now and
where it would be if we were operating in accordance with
your values.
• Identify and agree the consequences of these gaps and the
benefits of closing them.
3. Build a Case for Change and Engage Everyone in the
Process of Change
It is naive to want to change the culture “just because it’s a
good thing to do”. If you want to achieve culture change it
needs to be because it will help your organisation to realise its
potential and everyone to live the Values.
In order to create a desire for change, people need to
believe that they will be better off after the change than they
are now and the effort in making the change is worth it.
RVA Yearbook 2009

Performance

Achieving Culture Change

(and Realising the Benefits)
Therefore, it is important for staff to understand the current It is naive to want to change
culture and the implications for their performance and
commitment. They also need to understand how they help the culture “just because it’s a
create the culture, how they can help change it and how the good thing to do”. If you
leaders of the organisation will support them to do this.
Culture change occurs when every single one of us does
want to achieve culture
what we can to achieve that change – from the way we change it needs to be because
organise our work to the systems we use to recognise and
it will help your organisation
reward performance. The little things each one of us does,
create big changes at the organisational level. to realise its potential and
4. There is No Substitute for Leadership everyone to live the Values.
Leaders are the single biggest influencers of the culture –
people look to their leaders to identify what it takes to be
successful in the organisation – they set the implicit to people. How do you know what that is? Ask them – that’s
expectations that become the norms. why Step 2 is so important.
For an organisation to successfully change its culture, By starting somewhere, anywhere, you will:
leaders need to be prepared to lead by example and open • Lead by example
themselves up to advice, feedback, development and being • Signal a change
challenged. The most common cause of failure in culture • Make a difference
change is the absence of leadership consistent with the • Build the desire and confidence in your people to do the
change. next thing
Ask yourself: 6. The Role of Values
• How does what I am doing fit with the culture we are Values are aspirational and we all agree with them – what
trying to build rather than the culture we have today? matter are behaviours – what you do and the way you do it
• How do I know this? every single day. Changing the culture is about living the
• What will I do to improve? values, even when the going is tough.
• How will I measure that improvement?
• What help do I need? 7. Sustaining the Effort
• Look at how you spend your time … what messages does it Change takes time and effort and it’s easy to become
send? disheartened. It is essential that you take time to measure and
• When under pressure, what costs do you cut first? What review progress. Both hard and soft measures are critical to
messages does that send? deriving the benefits of the change.
External support is critical here and can take the form of Celebrate your achievements – these serve as incentives for
Coaching, Leadership Development as well as frank and future effort.
fearless, expert advice. 8. Re-Diagnose
5. Keep it Simple Achieving culture change is one thing, sustaining that change
Achieving culture change is not rocket science; it’s about is a never-ending task. High performing cultures require
knowledge, persistence and keeping things simple. ongoing maintenance and finetuning. It is essential to re-
In any culture change journey the hardest part is getting measure your culture every couple of years, re-engage staff in
started. “We have the data, we know what it means and we the process and fine-tune your actions accordingly.
know we need to change but where do we start?” The Key Ingredients
So many organisations try to change everything at once or • Organisational culture is a means to delivering your
over analyse in an attempt to find the perfect place to start. organisation’s strategy and values – it is NOT a feel-good
The “perfect” place to start is anywhere – focus on tool
something you can do quickly that will make a real difference

93
RVA Yearbook 2009

Performance

Achieving Culture Change

(and Realising the Benefits)
• Rigorously measure and diagnose your culture • Remember it’s a long-term journey, so pace yourself
• Analyse and close the gaps between the culture you have • Change is hard work so make it enjoyable.
and the culture you believe you need
• Engage everyone in the benefits of change – WIIFM (what’s Jennie Sheppard is a Director of The Performance Architects
in it for me) principle who specialise in cultural change, leadership development and
• Engage everyone in the process of change (remember – the executive coaching. She can be contacted via email
organisation is made up of individuals – we create the jennie@performancearchitects.com.au or on (03) 9895 9611.
culture and we can change the culture)
• Keep it simple – make it easy to change
• Get outside help – not to do it for you, but to provide
advice and support as well as help you stay on track –
otherwise you will be subsumed by the current culture
• Track your progress and celebrate your achievements
• Learn from your successes and failures

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RVA Yearbook 2009

Performance

HVAC: Opportunities for the

triple bottom line
Residential and commercial buildings are responsible for 23 per cent of
Australia’s greenhouse gas emissions.

In fact, the United Nations Environment Programme estimates

that the worldwide built environment’s lifespan contribution to
global CO2 emissions is 40 per cent. This makes it the largest
single contributor and places it at the front line of the battle
against global warming.
While there is considerable evidence that buildings are a
major part of the problems our planet is facing, they can
equally be a large part of the solution.
The Intergovernmental Panel on Climate Change has found
that 30 per cent of the greenhouse gas emissions projected to
arise from buildings by 2030 can be avoided by investing in
energy efficient buildings. What’s more, this saving can be
achieved at a net economic benefit.
Heating, ventilation and air conditioning (HVAC) systems
are a large contributor to energy loads in buildings, and
building projects based on nine categories, which look at
comprise a large part of building operating costs. With that in
issues such as energy and water efficiency, indoor environment
mind, improved energy efficiency in this area can deliver
quality and resource conservation.
significant financial advantages at the same time as the
Green Star environmental rating tools support the property
environmental benefits.
and construction industry in reducing the environmental
According to the Green Building Council of Australia’s
impact of buildings, improving occupant health and
(GBCA’s) Green Star Executive Director, Robin Mellon,
productivity and achieving real cost savings, while showcasing
improved energy performance in buildings reduces operation
innovation in sustainable building practices.
costs, decreases levels of pollution during the production and
While traditionally most of the focus on HVAC has been on
consumption of energy, and can enhance occupant health and
minimising its energy consumption, there are additional
comfort.
aspects that are considered within Green Star. The amount of
“In fact, with the increasing cost of energy, even efficiency
fresh air delivered into a space, the mix and circulation of the
measures requiring a significant capital investment can have a
air, and the capacity of the building to deliver the air effectively
rapid payback period,” Robin says. “First and foremost, systems
can all have an impact on the wellbeing of occupants, and so
and technology are not the answer alone, but coupled with
are considered within Green Star.
good passive design solutions – orientation, shading and
The design and construction of an HVAC system is also
materials choices for example – technology can have a massive
considered within a number of Green Star tools. In Green Star
impact on a building’s efficiency.”
– Healthcare v1, for instance, access to the ducting for
Holistic consideration of a building’s energy load is
maintenance purposes is assessed, as is the construction of the
essential to integrating energy efficiency into building
system. In Green Star – Office Interiors v1.1, projects are
operations, Robin says. “It’s important to consider HVAC
required to clean the existing ductwork prior to use in order to
equipment and operation procedures along with other building
reduce the amount of mould in the system itself. All Green Star
features. For example, reducing energy needs through
rating tools are available to download from the GBCA’s
improved window glazing, insulation, and use of other passive
website, for free, at www.gbca.org.au.
or active features can enable mechanical HVAC systems to be
All Green Star rating tools measure the proportionally large
downsized. In essence, the better the building façade, the less
environmental impact of a refrigerant’s ozone depletion
energy required inside.”
potential (ODP) and global warming potential (GWP) – as a
The GBCA operates the Green Star environmental rating
typical refrigerant molecule can contribute 1,000 times more
system for buildings, which evaluates the green attributes of

95
RVA Yearbook 2009
Performance
HVAC: Opportunities for the
triple bottom line
to global warming than a molecule of carbon dioxide, for
example. Furthermore, the water use of an HVAC system is
considered, if the system uses a cooling tower, as well as the
risks that such systems pose with regards to Legionella.
“The Green Star environmental rating system can be used
as a tool to conduct an assessment of your building’s current
features, help you set goals for sustainability achievement, and
deliver equipment and operation improvements using a whole
building approach,” Robin says.
Energy efficiency can be a challenge in many commercial
building spaces – none more so than retail centres. “The size
and scale of shopping centres can make them difficult to
condition – with the need to provide fresh air, natural light and
temperature control to large spaces often requiring a
combination of solutions,” Robin Mellon says.
Despite the challenges, energy efficient HVAC systems
helped Mirvac achieve a 6 Star Green Star rating – Shopping
Centre (PILOT) for the Orion Springfield Town Centre.
Orion Springfield is considered a pioneer of world’s best
practice in environmental design for a retail centre, with its
Green Star rating representing world leadership. The project
was the first in Australia to achieve a 6 Star Green Star rating
for a retail centre.
Orion Springfield’s total site area is 40 hectares, with Stage
1 of the development of approximately 35,000m2 featuring two
shopping malls set around a pedestrian-friendly main street,
which leads to a town square. Just like a traditional town
centre, Orion is a place to do business, meet friends, enjoy a
96
meal or do some shopping.
According to Adrian Michaels, Mirvac Asset Management’s
Sustainability Manager, Orion Springfield was designed to use
approximately half the energy of a similar-sized shopping
centre, stores around 2,500 kilolitres of rainwater per annum
via 780,000 litre rainwater tanks, and has minimised or
eliminated volatile organic compounds in all paints, adhesives
and floor coverings.
Condensate recovery from air handlers provides 1,950
kilolitres of water for reuse each year with cooling tower
blowdown water recovery providing an additional 10,000
kilolitres of water. All landscape watering, bin wash downs,
toilet and urinal flushing, as well as cooling tower make-up
and water feature top-ups are supplied from 100 per cent
recycled water.
“Orion Springfield is the first Australian project to
incorporate variable air volume air handling systems in all its
retail tenancies,” Adrian explains. “Orion’s energy use in the
air conditioning of tenancies will save 67 per cent of the
energy from the reduced fan usage and 33 per cent from
reduced cooling requirements.”
The standard shopping centre tenancy air conditioning
design features fixed air volume systems. These systems use
dampers to create air balance in the ductwork and balance
cooling loads. The use of dampers leads to increasing static
pressure in the air conditioning ducts and back-pressure on the
air handler supply fans.
“Most regular shopping centres in Australia do not provide
RVA Yearbook 2009

Performance

any air to the tenancies – they simply supply either cool water, time
or electricity, for tenants to install their own systems. This
traditional approach is quite energy inefficient, so Orion’s
solution is a great step forward,” Robin says.
The shopping centre’s common areas feature mixed mode
air conditioning in both the north and south malls.
“Depending upon the outside conditions, the air conditioning
will operate on one of the three modes. The building
management system provides the necessary decision-making
to automatically select the appropriate means of maintaining
space conditions in the malls,” Adrian explains, adding that
the malls are broken into four areas, with each of the four
areas being independently controlled.
In ‘Natural Ventilation’ mode the mall air conditioning is
completely shut down and ventilation is provided purely
through natural convection. When air conditioning is required
and ambient conditions are suitable, the air handling units are
capable of operating in 100 per cent fresh air mode to achieve
comfort levels. When outside air conditions are not favourable delivering your
and mechanical cooling is required, the use of carbon dioxide project
monitoring allows the reduction of outside air intake to successfully is
minimal levels to minimise energy use under these conditions. our business
Extensive use of natural ventilation ensures both large
reductions in energy use and improved indoor air quality.
The Orion Springfield Town Centre features a chilled water cost
system, comprising two high efficiency chillers piped in series.
The system operates at a high delta-T of 15 degrees entering
and 5 degrees leaving temperature. The higher delta-T system
reduces the required chilled water volume proportionally, in
turn reducing the pumping power required to deliver that
chilled water to the air handling system. The advanced design
of the chilled water system reduces the chilled water pumping
energy and cooling tower fan energy by over 60 per cent quality
compared to standard designs.
The result is not just an estimated 300 tonne reduction in
greenhouse gas emissions compared to similar sized normally concept
conditioned centres, but also a 62 per cent reduction in to
potable water consumption compared to business as usual completion
design.
The GBCA’s Robin Mellon says that Orion Springfield is a
clear example of how HVAC approaches can improve the
performance of high-performing buildings.
“Sustainable green buildings are today’s smart investment.
By carefully analysing, planning and executing your HVAC
upgrades, you can deliver big benefits to the environment —
and your bottom line,” Robin concludes.

97
RVA Yearbook 2009

Performance

Retrogreening – a must for

stability in the commercial
property sector
Simon Morgan, FMA Australia’s Policy Advisor, explains why.
It is no secret that the
economic events of the past
year have had a debilitating
impact on most sectors in
the Australian economy. The
commercial property sector
has suffered and will
continue to feel the effects
for some time to come.
That said, every problem
is an opportunity in disguise.
With the Construction
Forecasting Council (CRC)
anticipating a sharp decline
in construction of new
commercial premises over
the next two years, the
current climate is the best
opportunity that enterprising
property owners and
managers are likely to get to
position existing buildings to
compete with new ones.
Tenants have come to
expect a lot from building
performance – and just
because construction activity Protecting Jobs & Protecting the Environment
has diminished is no reason to believe that tenant’s In an atmosphere where rising unemployment is of major
expectations will do likewise. When buoyant market concern, a concerted effort directed towards the sustainability
conditions return, as they surely will, those managing existing of existing building stock holds the key to providing
buildings will need to compete in performance stakes with employment opportunities in a sector that is otherwise set to
new constructions built to five and six star specifications. struggle for the next few years.
The environmental case for retrofitting or retrogreening With economic issues now firmly at the centre of the wider
existing commercial office stock is strong. However, in the policy debate, it will be important for advocates to stress the
current economic climate, there has been some concern that employment-side benefits of a large-scale national
property owners and managers would revert to “safe” options commitment to retrogreening of existing commercial office
and that caution in the economic sphere would naturally buildings going forward.
extend to design. Estimates vary, but a recent report undertaken by Davis
Fortunately, what is increasingly clear to many in the Langdon suggests that a large-scale national programme of
industry is that the economic imperatives for undertaking retrogreening could create over 10,000 direct job opportunities
retrofitting work are just as compelling as the environmental in the construction sector each year, with almost 27,000
ones.

98
RVA Yearbook 2009
Performance
Retrogreening – a must for stability
in the commercial property sector
opportunities being generated per annum across the broader
economy.
Over a ten year period, this would produce employment
for around 270,000 people across the broader economy. In an
economic environment where new employment opportunities
are difficult to secure, these are numbers not to be ignored.
Environmental Benefits
As well as the economic benefits that would stem from a
comprehensive national approach to retrogreening existing
building stock, the strength of the environmental case is
overwhelming. A clear pathway for achieving better outcomes
from the built environment was set out in The Second Plank
report produced by the Australian Sustainable Built
Environment Council (ASBEC) in September 2008.
The Second Plank report outlined in some detail the
additional carbon abatement opportunities that are available
by unlocking the potential of Australia’s existing buildings.
While the Carbon Pollution Reduction Scheme (CPRS) will go
some of the way to reducing emissions if and when it is
enacted, the policy can be made much stronger through the
adoption of complementary measures that further encourage
abatement activity.
In the numerous submissions FMA Australia has made to
Government over the past year regarding climate policy
matters, we have repeatedly emphasised the importance of
unlocking the abatement potential of existing buildings.
The Second Plank found that the CPRS alone, even
operating at peak efficiency, will produce total annual
abatement of around 8 Mt (mega tonnes) of greenhouse gases.
This is a long way short of the total abatement potential of
the built environment, which The Second Plank report
estimated to be 60 Mt per annum – much of which could be
delivered through the introduction of more effective energy
management practices and equipment upgrades.
There is plenty of work being done in the background –
witness the recent announcement of the National Strategy on
Energy Efficiency. Developed through the Council of Australian
Governments (COAG), the strategy sets out a pathway for
substantially improving minimum standards for energy
efficiency and improving regulatory processes so that barriers
to the introduction of new energy-saving technologies are
removed.
However, the time has come to move beyond discussion
about what should be done and start to take practical action
that will deliver concrete outcomes. Governments – state and
federal – have a leading role to play in this space and decisive
action will be enthusiastically supported by industry.
US Icons Going Green
In the United States, two major projects are significantly raising
the benefits and profile of retrogreening. One project is
underway and the other is due to commence shortly. The
iconic nature of the buildings at the centre of both projects has
generated mainstream media interest and will help ensure that
the practice of retrogreening isn’t something just for “industry
insiders”, but is a process with which the wider community is
increasingly familiar and comfortable.
In New York City, Manhattan’s most famous skyscraper, the
Empire State Building, is currently undergoing a $500 million
upgrade. The whole project is due for completion in 2013,
with building systems work due to be finished by late 2010,
and represents a comprehensive approach that incorporates
improvements to the building’s existing windows, better
insulation, significant lighting upgrades to tenanted areas and
an overhaul of HVAC systems.
When completed, the building’s performance will be
carefully monitored and managed through a web-based power
usage systems that will allow tenants to view their power usage
and make appropriate adjustments.
More recently, a similarly ambitious undertaking was
announced in Chicago for the tallest office building in the
United States. The 1970s era building has been the subject of
some fiery local debate in Chicago recently, with the change of
its official name from Sears Tower (retail giant Sears haven’t
occupied space in the building since 1992) to Willis Tower
(after the British insurance broker became a new tenant and
secured naming rights).
Despite the angst of some Chicago residents about the
name change, the building’s owners have been more focussed
on the building’s environmental impact, pushing ahead with a
five-year, $350 million plan to overhaul the facility’s energy
efficiency strategy and cut base building electricity
consumption by 80%.
The Australian Experience
While there have certainly been some innovative retrofitting
projects undertaken in Australia, including works undertaken
on heritage buildings, we are yet to see an ‘iconic’ Australian
equivalent of an Empire State Building or Sears Tower project.
This is partly because Australia’s iconic buildings tend to be
public facilities (e.g. Sydney Opera House), rather than
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Performance

Retrogreening – a must for stability

in the commercial property sector
commercial office buildings. Of course our two tallest energy efficiency measures.
structures, Q1 on the Gold Coast and Eureka Tower in While some steps have been taken at the state level in
Melbourne, are both residential buildings and, having both relation to energy certificates, the market would be far better
been completed within the last four years, are too new to be served by a comprehensive national approach. Given that the
viable candidates for retrofitting works. Commonwealth
Nonetheless, there is an opportunity for Australia’s major will soon be
cities to shine in another sense. True, most of our office legislating for
buildings lack the iconic façade of an Empire State Building, mandatory
but that shouldn’t prevent our buildings having iconic disclosure of
performance levels. commercial
The clearest signal our leaders could send to the office building
commercial sector that they are serious about promoting energy
energy efficiency is to get our existing buildings to perform efficiency, it
more effectively. Doing so will take more than the introduction makes sense to
of emissions trading – it requires Government to think more align the
broadly and attack the problem of carbon emissions from introduction of
many fronts. such a scheme
with the
Providing Additional Incentives
commencement
Undertaking a retrofit of an existing commercial building is a
of the
costly exercise. To date, building owners have been reluctant to
mandatory
pursue this course because there is often a long period
disclosure
between capital outlay for building improvements and a
regime.
positive financial return on that investment.
Likewise,
The Second Plank identified three additional opportunities
there has been
for the Federal Government to encourage green retrofit works,
some direct
each of which are supported by FMA Australia. Briefly, these
funding support
are:
for green retrofits through the Commonwealth’s Green Building
a. A national white certificate scheme – A system of tradable
Fund and in some state jurisdictions through building tune-up
permits which commodifies energy savings. A certificate is
grants.
issued in exchange for verified improvements in energy
However, it is the introduction of some form of accelerated
efficiency – and certificates can then be sold on the open
green depreciation that remains the ultimate key to unlocking
market.
the abatement potential of the built environment in Australia.
b. Accelerated green depreciation – This would provide an
No one is denying that it would be costly to Government in
incentive for commercial building owners to invest in
the short-run, but at a time when there is an urgent need to
improving environmental performance, by allowing for the
support job creation in the construction sector and
deferment of tax payments in exchange for improving the
simultaneously reduce carbon emissions, it is an option that
energy efficiency of their building. In effect it allows
should be pursued.
investors to shorten the payback period on environmental
Over the past year, the Federal Government has indicated
improvements made to a building.
that it is willing to spend up now to protect jobs in the retail
c. Government funding support for building retrofit – It can
and manufacturing sectors. The commercial property sector
take several decades for the investment outlay on a green
must not be overlooked.
retrofit to be recovered, which often makes building owners
In the long run, failure to take action will prove far more
reluctant to invest in the process. Provision of some
costly – to employment, to our economy and to our
financial assistance for green retrofits would provide
environment.
building owners with an additional incentive to invest in

100
RVA Yearbook 2009
Performance
Talking about Security
Just when you thought all had been said, done and written about security and
the technology available to deliver it, a “new” solution is developed that
redefines the industry.
What is Biometrics?
Biometrics is the measurement of the unique physiological or
behavioural characteristics of the human body, such as the
finger print or iris pattern. Most often, biometrics is used to
identify an individual in situations requiring high levels of
accuracy or in scenarios allowing human interaction with
computers.
The different varieties of biometrics are:
Voice Authentication: This biometric can be used to verify
the identity of a person to allow an individual to interact with
secure services over the telephone (or other voice
communications device) such as secure call centres and
telephone banking or secure voice mail.
Finger Scanning: This technique can be used to identify an
individual from the print on the pad of their finger (or a
combination of their fingers). It is most often used to restrict
physical or virtual access.
Palm Scanning: This technique takes certain measurements
from the palm print of the individual. It generally requires the
participant to claim an identity against which the palm print
can be identified. This biometric is very popular for time and
attendance machines.
Iris/Retina Recognition: This biometric measures the
unique pattern of a person’s iris or retina by an electronic scan.
It is extremely accurate and is generally used to restrict
physical access.
Signature Verification: Various electronic measurements
are taken from the person writing their signature to produce an
accurate assessment of their identity.
Face Recognition: This biometric takes various
measurements of the human face as captured on video to
compare them with an existing template of faces and make a
match. This form of biometric is growing in popularity in
airports.
Other forms of biometrics yet to make a substantial impact
in the commercial arena include those used to measure body
odour, typing characteristics, ear shape and gait.
While some of these biometric systems are extremely
accurate, for a sizable number of corporations, the equipment
and IT investment involved can be prohibitive, and the means
of securing the information needed to verify one’s identity can
be quite difficult to collect in certain circumstances such as
high traffic – high volume situations like airport security.
The circumstances and need for the security information
has to be weighed against the ease of use and accuracy of
information required to arrive at a solution or technology
suited for the purpose.
What is Voice Authentication?
Voice authentication is a biometric technology that uses the
unique acoustic characteristics of a person’s voice to confirm
that “they are who they say there are” – literally.
Each person’s voice is unique. This is caused by a
combination of the way a person has learnt to speak and the
anatomical characteristics of their vocal tract. Together these
aspects contribute to create each individual’s unique voice
quality. Voice authentication systems use this factor to provide
an effective and convenient process for confirming identity.
Voice authentication is a two stage process. The first stage,
called enrolment, involves processing a sample of a person’s
101
RVA Yearbook 2009

Performance

Talking about Security

voice to extract and encode their unique voice characteristics.

The second stage, authentication, involves sampling the
speaker’s voice, processing as in the enrolment phase and
comparing the voice characteristics against those in the
enrolled sample. The user can then obtain a measure as to how
closely the speaker’s voice compares to the voice of the
enrolled sample.
Scientific evaluations undertaken for the University of
Canberra have demonstrated that voice authentication systems
are more accurate than finger, face and palm biometric systems
and offer similar levels of performance as iris recognition.
Typically, set up correctly, solutions exhibit less than 0.1%
false accept rate (that is, impostors being able to break into a
system) even if the impostor has the correct password
information.
Contrast this with a conventional password system. Given
that an impostor has the correct password then the impostor
has a 100% chance of breaking into the system. With voice
authentication, even if the impostor has the correct information
the chance of the impostor successfully breaking in is reduced
to 0.1%, that is 1 in 1000, with some voice authentication
systems offering even higher levels of security.
Voice authentication not only offers significant security
benefits but also offers significant convenience and cost
benefits to users. Because voice authentication is based on a
voice biometric, highly secure solutions can be developed to
offer higher level of security that do not involve users having to
remember complex PINs and passwords. In fact systems can be
developed that simply use the way you say your account,
credit card or telephone number to confirm that you are the
legitimate speaker.
This is not only more secure – but from the user’s
Combating Identity Fraud with Voice Biometrics
perspective far more convenient. Furthermore, for businesses, Voice authentication is one biometric with the potential for
resetting forgotten or stolen PINs and passwords is not only widespread use, particularly in call centres and online services.
extremely expensive, it is extremely problematic from a Voice authentication authenticates a person’s identity from
security standpoint. Voice authentication solves both these their unique vocal characteristics. In a nutshell, a person
problems. records a spoken password (such as their name or some other
Multi-factor voice authentication is rapidly emerging as the easily remembered information). This is analysed to extract
high-value high-security technology to protect mission critical their unique voice characteristics, which are then compiled
applications and services. into a “voiceprint”, a matrix of parameters that encodes not
Dr Clive Summerfield is CEO of Auraya and consulting firm only the password but the way the person says that password.
3SH, and has been a driving force in the adoption of speech This is stored in a database for future authentication of the
recognition and voice authentication since the 1980’s. same speaker.
Following is Dr Clive Summerfield’s White During a transaction, to confirm an identity the person
simply says the password information originally spoken during
Paper on Voice Authentication: registration. The corresponding “voiceprint” is extracted from

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RVA Yearbook 2009

Performance

Talking about Security

the database and the characteristics of each are compared. If Recent advances in voice authentication have addressed all
they match, identity is confirmed and the transaction can of these questions.
proceed. As voice authentication relies on “voiceprint” Studies by the National Centre for Biometric Studies at the
information (and not a particular password or phrase), an University of Canberra confirm research by the UK
imposter attempting to gain access to an account may say the Communications Electronic Security Group (the Information
correct password, but will be rejected as he or she will have Security division of the British Government Communications
the wrong voice quality. Headquarters) demonstrating that voice authentication
outperforms current fingerprint, hand print and face
Voice Authentication - Ubiquitous and Secure
recognition products. Tests by Edinburgh University’s Centre of
A key benefit of voice authentication is that it works over the
Communications Interface Research, also covered in the
telephone - the world’s most ubiquitous communications
University of Canberra study, showed voice authentication to
device found in almost every household and business
be 99.9% accurate, which is 1000 times better security than
worldwide. In other words, the infrastructure for the
PINs and passwords alone. The effectiveness of voice
widespread rollout of biometric voice authentication is already
authentication is further reinforced in the University of
in place, as one’s identity can be authenticated from anywhere
Canberra study for government call centre applications and
in the world simply by dialling a telephone number.
There is no need to invest in special sensors or scanners,
nor is there any need to invest in special authentication
software or data communications technology. More
importantly customers do not have to learn to operate new
equipment or systems. They simply use the telephone.
These factors all add up to an authentication solution that is
more cost effective, easier and quicker to implement, easier to
manage and faster to deploy than other security options. Voice
authentication also offers enhanced security. As the technology
is accessed by telephone, the authentication server can be
centrally located in highly secure facilities with no connection
to unsecured desktops, laptops and networks.
Hence, there is no opportunity for “hackers” to break into
the system, providing an extremely secure implementation for
identity management and authentication systems. When voice
authentication is deployed in mass market applications,
passwords and PINs become unnecessary, and call centre
agent intervention becomes obsolete. Removing call centre
agents from the identity verification process has the advantage
of closing off another avenue for identity theft to occur. An
additional benefit of this biometric deployment is that
automating a core call centre function for voice authentication Specialists in Aged Care
reduces call centre operation costs.
and Retirement Villages
FAQs on Voice Authentication
In the past, there have been numerous questions regarding the
performance of voice authentication:
• What happens if I have a cold?
• Can mimics break into my account?
• What happens if somebody records my voice? For enquiries free phone 1800 136 040
www.victoriacarpets.com.au
• Can my password be decoded from the voiceprint?

103
RVA Yearbook 2009

Performance

Talking about Security

online and automated services. In this study, the

robustness of voice authentication was also studied
to ensure secure operation for every day
deployments such as mobile telephones and in high
noise conditions.
Extensive testing has also shown that mimics are
unable to fool the technology even when they know
the passwords and PINs. The technology can also be
configured to remain relatively insensitive to colds
and flu. Unless highly sophisticated equipment is
used, recordings also cannot fool the system.
To further strengthen security, however, voice
authentication systems are usually set up to ask
questions in a random sequence, thus making each
session different from the last – preventing a
recording of previous sessions from being used to
“hack” the current session.
(In fact, speaker verification is now at the point
where it is being deployed in highly secure
government services and there are at least three
vendors certifying their technology for defence and
national security applications.)
Securing the Call Centre
The Australian Government’s Office of Strategic
Crime Assessment has stated that “critical to the
functioning of the economy is the requirement that
stronger systems of proof of identity are developed”.
By applying voice authentication to front-end
call centres and online services, there is no need for
call centre agents to see or hear clients’ personal About the Author
information, PINs or passwords. Likewise, there is no need for Dr Clive Summerfield is CEO of Auraya and consulting firm
callers to disclose such information to call centre agents. 3SH. Clive has been driving the adoption of speech recognition
Callers simply authenticate their identity using their voice, and and voice authentication since the 1980s, with a key focus on
once authenticated, can be passed on to the agent massively scalable carrier-grade projects.
anonymously. As such, the call centre agent can be certain that In 1990 Clive founded Syrinx Speech Systems where he
the caller is who they say they are but need not know any implemented AT&T’s USA based Customer Care application as
personal or security information about the caller. This is well as applications for Commonwealth Bank’s Australian
particularly beneficial for organisations using off-shore call Stock trading system. He introduced voice biometrics to
centres as it prevent agents in those off-shore facilities stealing Australian government agencies such as Parliament House and
callers’ personal identity information. has designed and calibrated voice authentication solutions for
Voice as a biometric identifier offers convenience and cost Centrelink, Vanguard (a major US financial services firm) and
effectiveness in preventing security problems discussed above. the National Australia Bank.
By protecting personal information using voice authentication,
the “weak link” in identity-related fraud in online and call Please visit www.auraya.net and www.3sh.net for more
centre services can be effectively addressed. information.
(adapted from material by Dr Clive Summerfield).

104
Australia’s peak national representative
body for the facility management industry
Established in 1989 and now with some 2000 members, the
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