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Out of adversity comes opportunity

March 31st 2011 02:09
Cyclone Yasi
Cyclone Yasi

Graeme Newton is a busy man.

He heads the Queensland Reconstruction Authority, the body in charge of getting the Australian state back on its feet after twin muggings by nature earlier this year - widespread flooding in January was followed two weeks later by Cyclone Yasi, a storm so big we may never see another like it.


Graeme Newton and his team are in charge of cleaning up. The bill is expected to be about A$5.8 billion.

So he had plenty of other things to worry about recently when he was asked to take a phone call from the World Bank, a body involved in the permanent disaster area of global poverty.

"Could we," the World Bank asked Graeme Newton, "send a few people to watch what you're doing?"

"Why?" Newton replied, or words to that effect.

"Because," said the World Bank, "we think that what you are doing is cutting edge."

The World Bank may not have used the term "cutting-edge", but media reports today do use the term to describe how the World Bank saw the way Newton and Queensland were going about reconstruction.

Out of adversity comes opportunity. The observers are on their way and, hopefully, the World Bank will learn something which will be of use in its future roles in disaster management.

When it comes to disasters, every little bit helps.



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Risk and reward

October 28th 2010 10:44
Dr Greg Chapman, director of Empower Business Solutions and writer of The Australian Small Business Blog, makes a telling business point with an anecdote about his university years.

The story concerns his three lecturers during one year of his MBA course. Two of the lecturers worked full-time for the university while one lectured part-time and ran a property development business as well.

Each year the MBA course participants took part in a business game where they were placed in teams and acted as company directors, competing with the other teams.

Each year the three lecturers would have a dry run of the game beforehand, competing against each other. And every year the part-time lecturer won.

So one year the two full-timers decided to conspire, connive and collude to break the humiliating dominance of their colleague. They lost anyway.

The difference in their strategies, and the lesson of the story, is that the part-time lecturer was prepared to take risks, backing his knowledge, instinct and confidence.

The same knowledge and instinct was used to cut losses and exit quickly when a venture or strategy did not work as planned, as will inevitably happen.

But when it does work, says Dr Chapman in his business blog, the rewards can be considerable, and will always beat a conservative, no-risk approach.

Greg Chapman's small business blog can be found here.


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