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EOFY Self Audit

With everyone compiling end of financial year to do lists, focusing on what to do between now and the end of June, I wonder how many of us are taking a slightly longer view and thinking about ourselves and where we are at.

I'm not talking about goal setting or measuring how far you may or may not have progressed in tasks you may have set. I'm talking about a 'self audit' - a good hard look at yourself and then an honest appraisal and hopefully some changes to re-align what is important to you.

It's been an interesting few weeks for me, with a close friend having both breasts removed from cancer - a single mum doing it hard with nothing more than a passion to raise her two children and see them succeed and make a good start in life. The a gentle stroll through Karrakatta, where I had an opportunity to visit my partners fathers grave site and place some fresh flowers and say hello.

It kind of puts things into perspective and is a refreshing reminder that there has been a past and no doubt there will be a future a tomorrow, but the most important thing is what you have in this moment right now - the present. If you can stop your mind drifting into the past or future and just be present and look around you.

So my 'self audit' checklist includes, but is not limited to:

Consider going for a check - up with a doctor that specialises in treating wellness - not illness.

Set yourself some goals that are realistic and achievable - but push you. Then share these with people that are important to you.

Analyse a typical week - how do you rate?  What food have you eaten, how is your relationship, work ethic and focus, sex drive - energy levels?

How do you really think you compare against others your age - are you above or below the line?

When was the last time you confronted a fear - or simply broke the routine and did something different?

Okay, so where am I going with this? My thinking is that we are too used to being re-active instead of pro-active, especially with our health. My thinking is that everything we do is centred around our general well being and when you get that into alignment then everything falls into line with it.

Regardless of how old you are, or what shape you are currently in, it is never too late. The biggest challenge we have is our own limitations and self talk that everything will be okay.

So take the first steps now, this is not about the ego its about throwing some cold water on your face and waking up to the fact that you are in control and it all starts with a simple conviction.

[m6treasury]

Simon Sinek presents a simple but powerful model for how leaders inspire action, starting with a golden circle and the question "Why?" His examples include Apple, Martin Luther King, and the Wright brothers -- and as a counterpoint Tivo, which (until a recent court victory that tripled its stock price) appeared to be struggling. TEDTalks is a daily video podcast of the best talks and performances from the TED Conference, where the world's leading thinkers and doers give the talk of their lives in 18 minutes. TED stands for Technology, Entertainment, Design, and TEDTalks cover these topics as well as science, business, development and the arts

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The Reserve Bank

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Don't React, Proact!

It's 11:40am.  A perfect summer's day.   The streets are alive with people.  I'm in a taxi, trying to get through the city Station to catch my train which leaves at noon.  My train leaves in 20 minutes and I'm still not near the station. The possibility that I might miss my train is looking highly likely.  The perfect day vanishes. Oh no, I'm going to miss my train. How do I react?

I cross my fingers and hope I don't miss the train.

I play over in my head of all the repercussions of missing my train.

I sweat and get agitated.

I start giving the cab driver "polite" advice how to drive better.

I beat myself up for leaving my apartment late.

"React" is the strategy and my list of reactions are the tactics – the tangible ways in which I would implement my strategy.  It's too tactical to start looking for alternative options for each reaction. It's too inefficient.    What I need is a completely different strategy.  I need a new guiding principle.  So what's a better strategy than react?

Sitting in the taxi – I make a strategic decision - I am going to proact to the situation.  Now what are my options?  How do I implement? What's my proaction?

I accept that I may very well miss my train.

I consider what my course of action should be – get a new ticket for the next train which will probably get me to my destination, at most, an hour later.

I ignore the factors that contributed to the possibility of my missing the train (traffic, passive cab driver, my leaving late).  They are of no value to my proaction strategy.

I plan who I'd have to call, what plans need to be adjusted if I catch the later train.

My new strategy fully implemented, I notice something profound.  I'm completely relaxed and completely prepared to miss my train.   I sit back and enjoy the rest of my cab ride and the summer day outside.  My attitude also changes – I'm now enjoying the possibility of making my train instead of the fear of missing it. The situation turned from a race into a game.

In business, developing strategies to proact to situations instead of react to them forces us to think ahead.  It changes any situation from a stressful short term race to a strategic long term game.  The stress I had in the cab is no different to the stress of losing a client.  It's no different to missing financial goals or watching a project go awry...or managing cash in a "bad" economy.

When we react, we look to point fingers and assign blame (to others or ourselves) for the existence of the situation. We work to compensate or prevent bad things from happening.

When we proact, we accept the situation as fact and start looking for solutions or alternatives.  We work to make good things happen.

I'm using the verb "to proact" on a regular basis now, especially at work and in a strategic context.  No matter the situation, I want proaction to be the primary strategy.  The impact is profound.  It's forward focused.  It's optimistic. It's productive and it encourages people to come together.

As for my train?  I made it.  I didn't have to implement my proact strategy.  And I didn't run on to the train and feel relieved, I walked on to the train felt like I won something.  This is the impact of proaction.

Imagine if we all went to work and treated it like a long term game and not a short term race.  Chess instead of a mad dash sprint.  Easily done if we just proact to everything that happens.

[m6treasury]

ASIC Seeks Basel 111 Term Deposit Fix

THE long reach of the looming Basel III bank capitalisation rules has got down into Australian term deposits, with ASIC looking for ways around an inconsistency with the Corporations Act.

Basel III, taking effect in 2013 and aimed at strengthening the liquidity of the battered global banking sector, mandates a minimum 31 days' notice before term deposits can be redeemed, since one Basel III test is that banks should survive a 30-day crisis.

Terms deposits in Australia that are easily "breakable" are regulated less than others and classified as Basic Deposit Products, not requiring product disclosure statements and other consumer protections as required by the Corporations Act.

  On the other side, "breakable" deposits will count less highly for bank liquidity levels under Basel III than "unbreakable" deposits, so the Australian Securities & Investments Commission is looking for a way to allow more deposits to be "unbreakable" while still qualifying as BDPs.

  ASIC, which has consumer protection oversight, is the third regulator in Australia involved in Basel III, behind the Reserve Bank and the Australian Prudential Regulation Authority. The latter's chairman, John Laker, will issue a discussion paper on Basel III before Christmas, which he recently stated would make no concessions to the current weakness of global banking markets.

  ASIC yesterday issued a consultation paper suggesting forms of relief from the Corporations Act that may be made available to banks planning to accept those "unbreakable" deposits, mostly relating to the amount of information that depositors are given before they hand their money over. If enough information is given to depositors making it clear their money would be locked up for a fixed period, then the banks would not be forced to issue PDSs and adhere to higher staff trading standards as the act requires.

  One expert indicated that with the right settings there could be advantages for banks and depositors, in which banks might offer higher rates to depositors prepared to accept "'unbreakable" deposit conditions, since their deposits could count towards the banks' capital adequacy.

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RBA Policy Decision

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The Giving Mindset

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Decoupling Rates RBA

There have been significant changes over the last couple of months, resulting in Australia's major banks decoupling their interest rate decisions from that of the RBA.

ANZ started this movement when Mike Smith declared he would make his decisons on the second Friday and not pending the outcome of each RBA meeting.

As retail banks are highly political and very sensitive to client sentiment, this move signals a new determination amongst the banks to reflect interest rates charged on loans against their real cost of funding.

Certainly an environment where banks have to slow or reduce their lending is not one that would be productive for the Australian economy - with significant impact on productivity, employment and innovation. So what has this got to do with deposits?

Organisations need to consider applying strategies themselves against the future cost of their own lending needs and to use their deposit base with banks to secure access to credit when and if they need it.

By using your deposit base as the formation of new relationships can position an organisation and allow both parties to engage and form a base before any future transactions.

Don't be surprised how advantageous things become when you see the benefits of building multiple relationships off the strength of your deposit base.

More food for thought!

[m6treasury]

Pose a Challenge, Not the Solution

Sound familiar? When defence procures something, they will often put out a statement that articulates an issue and wait for the market to respond with solutions, no matter what form they take.  Instead of a "new marketing campaign" they may ask for various parties to suggest "the best way to communicate with new recruits."  Instead of a photocopier, they may ask for "the best information sharing solution given X conditions."  Of course price, quality and service are all factors, but so is the nature of the solution. When it comes to financial services, particularly in dealing with banks - perhaps we should be adopting a similiar approach. We are often confronted with product and pricing when dealing with banks when in actual fact the strength often lies in their talent and innovation - you just have to know how to find it.

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Australian Banks Receive Boost from S&P

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Two Out of Three Ain't Bad

When you go to school you're told you can have good grades, a good social life or sleep – pick two.  Business is no different.  Almost everything we buy can be boiled down to quality, speed or price – pick two. A Rolls Royce, for example, is made from the finest materials and costs a lot of money.  But they take a long time to make.  A Toyota Camry, in contrast, is fast and cheap and though the quality is good, it's not the best.