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2018
REBALANCING
OF THE
CONSTRUCTION
SECTOR.
Contents
KONNECTIONS 2018
The career that
Tony built 4-7
Rebalancing of the
8-13 construction sector
The New Zealand
Customer Experience 14-15
Excellence Report
Fuelling community
16 prosperity
Keeping
Konnected
18-23
Introducing our
24 new leaders
Work hard,
play hard
26-27
2 | KONNECTIONS 2018
Kia ora
Welcome to the latest edition of KONNECTIONS
In this issue of Konnections, we’re turning the spotlight on one of New Ross Buckley
Zealand’s most important industries. The construction sector is consistently Executive Chairman
among the top contributors to GDP; as well as providing the all-important
infrastructure that we need to grow the nation. This sector plays a critical role
in Fuelling New Zealand’s Prosperity – and we’re proud to partner with many of
the key players; in both the private sector and public infrastructure projects.
Godfrey Boyce
Of course, the industry has also faced its fair share of challenges in recent Chief Executive
times. In the article on page 8, Geoff Lewis, head of KPMG’s construction team,
explains the background to the current industry issues, and the road ahead.
Whether it’s mitigating risk, dealing with new contractual models, or fulfilling
health & safety requirements – our people bring a wealth of real-world expertise Aaron Woolsey
to the table. We’re working shoulder to shoulder with our construction clients, Alumni Partner
helping them overcome roadblocks and make the most of new opportunities.
Speaking of which, Auckland alumni Tony Dowse has joined a new construction
company that’s currently building New Zealand’s tallest residential building.
You can read Tony’s story on page 4.
We also follow the career adventures of several other alumni – all with very
different but equally interesting stories. Audit alumni Jessie Watson has been
based in South Sudan and Bangladesh, working with Doctors Without Borders;
while Pete Mora has recently finished a two-year stint working in the Alberta oil
and gas industry.
Finally, in this issue, we highlight some groundbreaking research KPMG
launched earlier this year. This was the culmination of nearly a decade of
research from KPMG Global into customer experience excellence – and we’d
be delighted to share those findings with you and your organisation.
We look forward to connecting with you in person at our upcoming alumni
events in Auckland and Wellington. Until then, we hope you enjoy the read.
Ross Buckley Godfrey Boyce Aaron Woolsey
KONNECTIONS 2018 | 3
The
career
that
Tony
built
Construction is
different every day
.. and at the end of
each project, you've
been a part of a
team that's created Tony Dowse
something tangible. CFO, ICON Co
KPMG ALUMNI TONY DOWSE was recently appointed
CFO for an exciting new name on the local construction Tony Dowse CFO, ICON Co
scene. Australian-based ICON Co has launched a New
Tony has recently been
Zealand arm, and is set to change the Auckland skyline appointed CFO for ICON Co.
with its inaugural project.
Tony has held a variety of
The 57-storey $220m Pacifica apartment building on Accounting and General
Commerce Street, currently being built using innovative Management roles across
technologies, will be one of the country’s tallest buildings a range of industries from
Construction through to Finance
at 178m. Tony tells us about his new role with ICON, and
and Audit Services. Prior to
his career in construction to date. ICON, Tony was the Financial
Controller for Hawkins, which
involved Financial Analysis,
What’s the and respected high-rise commercial
construction chiefs. I’ve worked with
Management Reporting and
background to ICON Dan on and off over the past 14 years;
Operations Management.
at Brookfield Multiplex, and later at
launching here? Hawkins.
Tony’s understanding of both
‘the numbers’ and construction
“ICON is a well-known Australian activity, allows him to plan
“ICON NZ launched in December for and manage the building
operator with offices in Melbourne,
2017, so is still largely in start-up and processes’ impact on the
Sydney and Brisbane. The company
has that new feel...as we establish our financial aspects of a business.
has been going 20 years, and is
policies, procedures and governance
majority-owned by the Tokyo-based
structures in line with New Zealand’s
Kajima Corporation, which has a
regulatory requirements. But at the
148-year pedigree. The consolidated
same time, it’s underpinned by a well- “In building Pacifica, we’re using some
turnover is in excess of A$20 billion.
established Group with a very strong construction technology that’s new to
“ICON’s management saw an balance sheet.” New Zealand – including a truck turn
opportunity to expand across the table, and jump-form technology. The
Tasman. It’s become particularly
timely with the recent departure of
Tell us about The jump-form in particular is attracting a
lot of attention from our competitors
Fletcher Building and Eberts, which Pacifica building. and prospective clients.
left a gap in the local market for a
company of this size and capability. “At 178m, it’s going to be New “As a result, we’re busy with
Zealand’s highest residential tower. negotiations and ECI work on a
“I’ve come on board as the CFO for The gross floor area is 43,768m2… number of other major builds; with
New Zealand; and I have counterparts comprised of 282 apartments, plus a combined build value in excess
in the different Australian regional a 35-room hotel, amenities, retail of $600m. So the future’s looking
offices. Our new operation is led and carparking. Work is already well bright…”
by GM Daniel Ashby, who is one of underway, and it’s due for completion
New Zealand's most experienced in September 2020.
KONNECTIONS 2018 | 5
What do you enjoy In previous roles, “My next role was Financial Controller
with Hawkins Group. The first 3.5
about working in you’ve also years, when it was a family-owned
business, was a combination of
construction? been involved in management accounting and
“I like the variety and constant some other large commercial management. As part of
an equity-raising, the business was
change. It has some unique
challenges throughout the process…
developments. Tell sold to Downer in March 2017, and
whether that’s in design, in-ground, us about some of this brought about big changes to my
role. I’ve been very impressed with
or even the weather. Construction is
different every day…and at the end
those. what Downer brought to the business
of each project, you’ve been part since assuming the reins. Their
“I was Regional Financial Controller governance around tender review
of a team that’s created something for Brookfield Multiplex for eight
tangible. You also get to work with processes, along with their detailed
years. Some of their larger projects – analysis of project performance
some very talented and highly- the likes of Metropolis Apartments,
qualified individuals, who have the and cash management, is what’s
Sylvia Park Retail Precinct or the needed to combat the issues that
smarts to build some pretty complex Sentinel Apartments in Takapuna -
structures.” have plagued the industry over recent
were effectively businesses in their years.”
own right, with their own teams of
professionals. Working with these
teams was always fulfilling, especially
What’s your view
when the final product is something on the current state
to be proud of.
of the industry?
“The industry is extremely stressed,
given the sustained historical highs
in volume; coupled with the major
changes in contract forms and risk
transfer, which the industry has been
slow to adapt to. There’s a definite
imbalance in the industry – where
the expectations of developers are
unrealistic, and often at the expense
of construction companies, who
take on massive commercial risk for
inadequate returns.
“To avoid the pitfalls of the past,
I think there needs to be more
collaboration between all interested
parties; with a focus on balanced
procurement processes and project
outcomes. Rather than award work
on lowest price, developers need to
weigh up the other attributes of the
main contractor, then negotiate price
on an open-book fixed-margin basis.
“Like all construction companies, “Opening up international supply
Multiplex also had its fair share of chains – as well as keeping
weathertight disasters. So making consultants and advisors more
sure you have sufficient reserves to accountable for their decisions –
meet the cost of repairs – and getting would be other useful steps.”
the auditors to accept the provisioning
– was always a challenge. Fortunately,
KPMG were the auditors and they
fully understood the need.
6 | KONNECTIONS 2018
There needs to be
more collaboration
between all interested
parties; coupled with
major changes in
contract forms and
risk transfer.
You first joined How did KPMG What’s the best
KPMG in mid-1988 set you up for piece of career
– not long after the your later career in advice you’ve ever
1987 sharemarket construction? received?
crash. What were “I never aspired to a long-term career “I’ve heard and received plenty
those days like? in CA, but KPMG was the ideal
environment to evaluate the type of
of different advice over the years.
But a couple of my favourites are:
“At that time, the New Zealand industry and future role I wanted. ‘Focus on your strengths, and build a
business psyche was transitioning team around you that complements
“Being with the firm gave me your shortcomings”. And one
from the pre-crash mentality.
invaluable exposure to different that’s probably very relevant to the
Overnight there were a lot of people
industries, systems, time construction industry… ‘No-one ever
hurting…businesses were demanding
management, work ethic and lost money making a profit’.
more of their professional advisors,
professionalism – and the all-
and this placed extra pressure on
important business network.
audit teams.
“The partners were great people…
“We put in some long hours, but the
Chris Joyce, Keith Rushbrook,
partners and senior managers also
Joanna Perry, Russell Florence, Collin
stepped up to absorb the pressures.
Reid and Jan Dawson; to name just a
So it was a real team effort, and
few. They were all highly-respected,
that created a pretty special working
and made KPMG a desirable place
environment. They also thanked us by
to work. It’s somewhere I can proudly
putting on regular social functions…
put on my CV.”
every Friday night was a time to
unwind.”
KONNECTIONS 2018 | 7
REBALANCING OF
THE CONSTRUCTION
SECTOR DIGGING INTO NEW ZEALAND’S
CONSTRUCTION INDUSTRY
Our construction
industry has never
been busier ... but that
success has brought its
own set of problems
8 | KONNECTIONS 2018
For the layperson, the current
state of our construction
industry appears to be
something of a contradiction.
On the one hand, we’re seeing
hi-vis jackets on every corner,
and more cranes on our
horizons than ever before.
At the same time, we read
headlines of stalled projects,
major contract losses, and
company collapses.
So what’s going on?
We talk to KPMG Director
Geoff Lewis.
What’s the state increased in complexity, size and
scale – particularly in commercial
Geoff Lewis of our industry – is construction.
Director and Head of
Construction, KPMG NZ it boom times, or “Secondly, the contracting model has
Geoff leads KPMG’s
bust? also been evolving. There’s been a
move away from build-only projects
Construction Sector. Geoff’s “There’s the paradox…because it’s (where the design and construction
experience includes leading actually a bit of both. Our construction is done separately), towards the
industry has never been busier – with design-and-construct model (where
independent major project
building activity hitting record levels in there’s a single point of responsibility
reviews and assurance, for delivering the entire project). At
the past three years. But that success
financial audit, project due has brought its own set of problems, the same time, there are significant
diligence, and industry which we’ll explain next. So the amendments to the standard form
consultation and advice. irony is we often see more failures (NZ3910) contract conditions.
He has a passion for happening in the upside than in the
“You’ve probably also heard of PPPs,
working with his clients downside."
which stands for Public Private
to build a strong and Partnerships. These have become
stable construction sector, What’s changed; the favoured procurement model for
which delivers high quality how did we get to some of the Government’s roading
and social infrastructure projects.
sustainable buildings and
infrastructure over the
this point? Private financiers put up funding, but
distribute design and construction risk
long term. “There have been a number of to contractors.
factors at play. Firstly, the types of
projects we’re undertaking have
KONNECTIONS 2018 | 9
“New Zealand has adopted these a significant impact on time and cost
new types of contractual models… once the project is underway.
which have been commonplace in
countries such as the UK, Canada and “In this scenario, it’s usually the lead
Australia for some time. And that has contractor that’s been the one stuck It's a work in
in the middle. They’ve taken a lot of
fundamentally changed the allocation
of risk between the different parties in risk from the project owner, but then progress... at
the supply chain.” they’re not able to transfer or spread
that risk to their sub-contractors,
the end of the
So, who’s taking on who don’t necessarily understand day, everybody in
a bigger share of
the risk they’ve taken on, or have the
financial capability to meet a claim if
the supply chain
the risk?
something goes wrong.” wants the same
What other factors thing.
“There are essentially three parties
to a major construction project – the
project owner, the lead contractor, and
are impacting
the sub-contractors. Allocation of risk project costs?
depends on the type of contract and
nature of the conditions. “Again, there are multi-faceted
reasons. But in a nutshell, the boom
“Under the old build-only model, in both residential and commercial
where the design was still the construction has put a lot of pressure
responsibility of the project owner, on resources and skills in New
the contractor could recover cost Zealand, particularly in Auckland,
variations in response to the changes which has led to significant price
in design. But with the design-and- escalation. So we’re seeing the twin
construct model, there’s often a effects of increased demand and
fixed-price competitive tender on a lack of supply causing significant
design that’s not complete. And if you inflationary pressure. The level of
haven’t priced appropriately for the price increases has caught a lot of
uncertainties in design, that can have people by surprise.
10 | KONNECTIONS 2018“In between bidding for the job and design mitigates the risk of substantial “But we’re currently seeing a
starting the build, the contractor might variations. While this may take more groundswell of industry leadership
face worsening shortages in labour time at the front end of a project, it challenging contractors to take
and resources, as well as rising cost often saves time at the end.” responsibility for understanding
of materials. This drives up their cost- risk, pricing it appropriately,
to-build, and squeezes their margins
to breaking point.
What’s the key and implementing good project
management practices.
to solving this
“The availability and lack of skilled “For example, the Registered Master
resources can also impact on problem? Builders Association has just released
construction timeframes, which from guidelines to assist contractors to
“If you had to sum it up, it’s about
a cost perspective, can increase understand contractual terms and
getting transparency around risk…so
project overheads and result in conditions when bidding.
that risks can be appropriately priced
contract penalties for late delivery.”
and managed for all parties. “At the end of the day, everybody
What does this “For contractors, it’s critical that
in the supply chain wants the
same thing. They want to create
appropriate due diligence is
mean for the completed in the bid phase of a
infrastructure, buildings and housing
that are of the highest quality, for
building itself? project; particularly around project
the price, and that will sustain their
scope, contract and construction risk,
purpose for as long as possible. But
“Project owners may favour the stage of design, and the impact of this
they need to be aligned in achieving
design-and-construct model because on pricing.
this outcome.”
it gives them more certainty over cost
and time, and they can redistribute “Appropriate risk management
the risk to the contractor. But it can practices – including legal review, risk How does KPMG
allocation matrix, risk frameworks and
also have a negative impact when
things go wrong. risk registers – are also useful tools." help clients address
these issues?
“If the project runs over time, it could
impact commercial returns. Or if a
Are things “There are important areas to focus
contractor's margins are squeezed too improving? on for a successful construction
tightly, that could potentially have an project that is delivered on and in
“It’s a work in progress. The
impact on the quality of the build. budget, including business case
receiverships and large contract
development, procurement and
“Other project owners prefer losses we’ve recently seen have
tendering, project management, risk
to manage design themselves. certainly highlighted some of the
management, programme, health and
Contracting on substantially-complete issues the industry faces.
safety, and quality.
KONNECTIONS 2018 | 11“When working with construction build residential housing companies,
clients, KPMG takes a multidisciplinary to large contractors, sub-contractors,
approach to assist our clients manage property developers, and public
these areas. We have a dedicated infrastructure clients.
The market Infrastructure and Construction team
that pulls in expertise from across “Our team gets to work on some
will need to the firm – whether it’s in financial and
commercial analysis procurement
really interesting projects. In a recent
client example, we provided an
rebalance advice, project risk management
or assurance, project controls,
independent assessment of forecast
margin across a number of their
in response technology, or health and safety. major building projects. We deployed
a mix of QS, project management,
to recent “We also collaborate with our
construction counterparts across
engineering and finance expertise –
along with some analytic technology
events. KPMG’s global network to deliver the
right expertise, and work closely with
– to provide insight into cost,
construction programme and risk.
KPMG Australia.”
“We’ve advised on all of New
What kind of Zealand’s PPP projects, both
Government departments and
projects does bidders. Most recently, we advised a
private sector party on their proposal
KPMG get involved to renew a local authority’s waste
with? water treatment plant, including
obtaining offers of financing from
“The projects are specific to our private financiers.”
clients’ needs. We work with
businesses and organisations across
the sector, from successful group-
12 | KONNECTIONS 2018Another trend is the move towards
sustainability of building materials
and construction methods… building
companies and project owners will
need to meet those expectations
“Another trend is the move towards “We’re slightly different to the
sustainability of building materials other markets; in that we have
and construction methods. This is fewer large contractors with the
being driven by consumers, investors, financial capability to take on the big
public bodies and Government; who projects, and a highly fragmented
increasingly want to know that their subcontractor market. So the
building projects are environmentally contracting model will need to evolve
and socially responsible. So building to meet the New Zealand market
companies and project owners will requirements, and this will be a space
need to meet those expectations. to watch.
“Technology adoption by the sector is “The escalation pressures are
slow, but there are some significant expected to continue in the short-
opportunities. For instance, KPMG term; and the impact of risk
Global’s Construction Survey notes rebalancing is unknown, but could
that data and analytics will be used in push up prices further. Forecasts
future to improve transparency, and indicate that we’ll see continued cost
What are some make better use of the vast data sets pressures for another 12 months or
associated with major construction so, with things starting to ease by late
future trends in projects.” 2020. Building consents in Auckland
construction to are rising, and Kiwibuild projects
watch for? What’s the short- will get underway, continuing to put
pressure in the housing sector.
term outlook for the
“There’s a growing trend towards ”On the infrastructure side, there
pre-fabrication – it’s been mostly in local industry? are a number of major projects in
the residential sector, but it’s also the pipeline, including the light rail
“The construction industry is one
emerging in commercial projects. In project in Auckland. It’s possible
of the biggest employers and
India and China, multi-storey buildings that large-scale projects like this will
contributors to GDP; so its stability
are being erected in a short space of attract offshore firms with specialist
and profitability is vitally important to
time. expertise and strong balance sheets
the New Zealand economy.
into the New Zealand market. How
“Pre-fabrication can provide more
“In a nutshell, the market will need they engage and partner with local
certainty around cost, as the design
to rebalance in response to recent firms on these projects will be
is substantially complete before the
events. As we’ve mentioned, important.
construction starts and processes
procurement methods and allocation
are standardised in a controlled “We’re also seeing central
of risk are immediate key issues
environment. Government and local authorities look
for the industry and government.
at new and innovative ways to fund
“Locally, the Government has asked Industry bodies are now challenging
and finance our infrastructure. Many
for expressions of interest in off-site themselves to improve risk
of our local authorities are constrained
construction to achieve its Kiwibuild management, and the Government is
in their ability to borrow, which has led
program; while a local New Zealand reviewing its procurement practices.
them to explore alternative ways to
company is investing in panelization
fund these projects.”
for its residential developments.
KONNECTIONS 2018 | 13The New Zealand Customer
Experience Excellence Report
This year, our Customer Experience team launched the
inaugural KPMG New Zealand Customer Experience
Excellence Report, revealing what New Zealand
consumers value most from their favourite brands.
This New Zealand-focused report The report gives a unique view into
comes off the back of the Global how Kiwi consumers view a number
KPMG Customer Experience of iconic New Zealand brands,
Excellence report, based on a the economic impact of customer
survey of almost 55,000 consumers experience (the 2018 research shows
across 14 markets, to identify which that EBITDA growth of the top 50
brands consumers ranked highest global customer experience leaders
for customer experience excellence. is 202% greater than the bottom
2,504 Kiwi consumers evaluated 124 50, at an aggregated level) and key
New Zealand brands, allowing us insights into our unique New Zealand
to identify the top ten New Zealand consumer environment and what
brands and the actions they’re taking organisations are doing to become
to deliver exceptional customer more customer-centric.
experiences.
The top three leaders of customer
experience for New Zealand,
Farmlands Co-operative Society,
Air New Zealand and Kiwibank,
excelled at consistently providing
personalised experiences that make
it easy for consumers to connect and
interact with them. We found this
success started with a fundamental
understanding of their consumers
and a strong belief in the identity
and purpose of each organisation’s
mission.
14 | KONNECTIONS 2018These Six Pillars are the DNA of every
outstanding customer experience and
lay the foundation for consumers to
The Six Pillars of Customer identify the leaders in each country.
“The pillars allow a psychological
Experience Excellence understanding to be paired with the
economic values that give us far
Brands were ranked across the KPMG more insight than legacy customer
‘Six Pillars of Customer Experience Excellence’; experience indicators such as NPS
(Net promoter score)” says Simon
Hunter, KPMG Partner.
Personalisation Excelling at
Using individualised
attention to drive
customer
emotional connection. experience
KPMG’s dedicated customer
experience team can help with a
number of critical customer issues,
ranging from customer strategy
Integrity to profitability and experience
Being trustworthy and excellence. Get in touch today to
engendering trust. further discuss the report and the
services we can offer. For further
information please contact:
Simon Hunter
Expectations Partner, Advisory
T: +6493675811
Managing, meeting and
E: simonhunter@kpmg.co.nz
exceeding customer
expectations.
Baxter McConnell
Senior Manager, Performance
T: +6493675873
Resolution E: bmcconnell@kpmg.co.nz
Turning a poor
experience
into a great one.
Time and Effort
Minimising customer
effort and creating
frictionless processes.
Empathy
Achieving an understanding
of the customer’s circumstances
to drive deep rapport.
KONNECTIONS 2018 | 15Fuelling community prosperity
The Big Hoot
This year, KPMG was a proud sponsor
of the Haier Big Hoot, raising funds
for the Child Cancer Foundation. The
event saw 47 owl sculptures designed
by renowned artists, and 60 ‘owlets’
designed by school children (including
one by our partner school, Edmund
Hillary School), form a community trail
across Auckland.
At the conclusion of the trail, the large
owls were auctioned off, raising an
impressive total of $383,000 for the
Child Cancer Foundation. With winning Helping out at
bids ranging from $3,750 to $17,000,
the KPMG owl sculpture, Full Moon Hamilton Zoo
Ruru, was sold under the hammer for
The KPMG Hamilton Enterprise team used
$7,250. KPMG also donated a further
their volunteer day this year to assist at
$3,000 directly to the Child Cancer
Hamilton Zoo, with one volunteer reflecting
Foundation thanks for the generosity
“it made me realise how enormous a
of our people and their communities.
task the Zoo Keepers face each and every
day and that we can help out and make a
difference!”
“A big thank you to the KPMG team that
came out and made a big difference here at
the Zoo,” said a representative from the Zoo.
“We really appreciated all the work that you
were able to achieve… it would be great to
have your team out here again in the future.”
Volunteers ‘boost’
Stephen Parkinson from True Colours accepting the donation – pictured
literacy in Ashburton
with KPMG Partner Lauder Erasmus and ANZ Relationship Manager James Boost is a literacy programme established
Hancox.
after two benefactors left money to the
Advance Ashburton Foundation for child
literacy. It currently involves 41 tutors (6 of
Techweek gives back whom are from the KPMG Ashburton office),
and 145 children. Each child is partnered
This year, KPMG presented around the country for up with a reading partner, because they
Techweek’18 – New Zealand’s largest tech event. At our have been identified by their school as
Techie Brekkie in Hamilton, an event co-hosted with ANZ, someone who needs a learning boost. “We
we took the opportunity to donate all proceeds from the all leave each session with a great deal of
event to True Colours, a cause close to the hearts of one of pride to see the children making such great
our ANZ colleagues, True Colours is a Waikato based charity- improvements in their reading, writing, and
supporting children with serious illnesses and their families. confidence,” says one KPMG volunteer.
16 | KONNECTIONS 2018KPMG is proud to be
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KONNECTIONS 2018 | 17KEEPING KONNECTED
Auditors without borders
Jessie Watson’s South Sudan experience
Back in early 2017, a typical For six months in 2017, Jessie took “The hospital treated kids with
workday for Jessie Watson leave from KPMG in Auckland to everything from severe acute
work as the Finance and HR Manager malnutrition, measles and malaria,
was spent in a sweltering for the MSF project in Wau, a city in to gastro and respiratory infections;
office – nursing an ice pack northwestern South Sudan. It’s where while the outreach team provided
to combat the 40 degree 30,000 local people lived in makeshift support for patients who would
heat – with the occasional shelters of bamboo and plastic in a otherwise be unable to cross the
smattering of not-so- crowded camp around the UN base, military checkpoints into town to
distant gunfire in the seeking safety from heavy fighting in access medical care.”
the area.
background. As project admin for the MSF
Jessie explains: “The internally- team, Jessie was responsible for
It was literally a world displaced persons’ camp was super- implementing supply and purchase
away from KPMG congested, and living conditions were controls, reviewing monthly project
Auckland’s comfortable sub-optimal to say the least, but the costs against budget to ensure
harbourside offices; Wau residents were so fearful of the transparent and traceable expenditure,
but the alumni Audit violence that they’d rather stay there and day-to-day accounting duties such
than return to their homes.” as payroll and month-end reporting.
Assistant Manager has
special memories of her Medecins Sans Frontieres (MSF) set Upon arriving at her new workplace,
time in South Sudan with up a 20-bed paediatric hospital in one of the first tasks was the safe
Medecins Sans Frontieres the camp, and also ran an outreach hand-over; which quickly highlighted
programme supporting four rural some of the challenges that lay ahead.
(Doctors Without Borders).
health centres in opposition-held
territory. “It was 35 degrees and I got locked
in the safe room – which was a
Jessie with admin assistants Shahid and Razi overlooking the A mother sits with her child, who is recovering from burn injuries at MSF's
Kutapalong Rohingya refugee “megacamp”, in Bangladesh. medical facility in Kutupalong, Bangladesh. Photo credit: Dalila Mahdawi/MSF
18 | KONNECTIONS 2018defunct bathroom littered with rat Although the international MSF team “There was a huge logistics team
droppings – where I had to count the lived in a relatively safe environment, which built a 50-bed paediatric
money, literally dripping sweat over there were still regular reminders of hospital and three health centres in
the cash...!” how volatile life was for the South six weeks. Each health centre saw
Sudanese staff. around 120 patients per day, while the
Hyperinflation is a major problem
hospital was dealing with a diphtheria
in the country, and the banks often “It was a bit unnerving when you
outbreak as well as supporting a
run out of currency; which made the heard gunfire the first few nights,
vaccination campaign. We also had
cash management part of the job and one morning I woke up to the
a water and sanitation team drilling
particularly difficult. sound of mortar rounds. However
boreholes and setting up a water
the national staff were incredibly
“Sometimes there’d be money in distribution system to ensure a
committed to their work, and even
your account, but the bank physically sustainable clean water supply. Our
went out to the hospital for their shifts
didn’t have the liquidity, so I always national staff team grew from 18 to
when the town was on military lock-
made sure to ring the bank manager over 300 in three months, so it was
down.”
a couple of days before we needed all go!”
the cash. When I went to withdraw On a number of occasions, Jessie
Currently, Jessie is living in London,
money, I’d get taken into a vault crossed the checkpoints out to the
working as a treasury analyst for
where I’d be dwarfed by the stacks of opposition-held areas where the
Omnicom.
South Sudanese Pounds.” outreach programmes were run.
The philosophy of MSF is to be Reflecting on her time with MSF, she
The other part of Jessie’s job was
neutral and impartial in the aim of encourages other alumni to offer their
recruitment and HR manager for the
administering humanitarian assistance skills to the organisation. In addition
80 or so local staff. This role often
to populations in need; regardless of to medical personnel, MSF needs
brought her face-to-face with the
race, religion or political affiliation. project administrators, finance co-
emotional realities of living in a war
ordinators and logistics experts to run
zone.
their different programmes around the
“For example, it was part of my job to world.
have ‘disciplinary meetings’ with any IT WAS A BIT UNNERVING “The finance work itself is fairly
staff member who didn’t turn up for
WHEN YOU HEARD GUNFIRE straightforward, you don’t necessarily
their shift. But often you’d learn the
THE FIRST FEW NIGHTS, AND need to be a CA to do it, but it’s more
reason was because their brother had
about managing people and problem-
been shot, or their house had been ONE MORNING I WOKE UP
solving. You also need to be pretty
looted. They told me this very matter- TO THE SOUND OF MORTAR tolerant…you’re with people 24/7, and
of-factly. Almost every week someone
ROUNDS. you don’t have a lot of alone time.”
would request compassionate leave
due to a family member being killed. Her advice for anyone considering a
I found that pretty hard.” similar adventure is to manage their
own expectations going into it.
During her time in Africa, Jessie also
found time to “trudge up Kili” (aka “You definitely need patience, and to
Mount Kilimanjaro) with her mother, adjust your expectations around what
who travelled from New Zealand to is achievable – whether that’s due to
meet her in Tanzania. resource constraints, or the pace at
which other people work. I found that
“We made it to the top for the token quite a contrast coming from KPMG,
summit photo before our guides where everybody is super switched-
half-carried, half-dragged us down the on and things happen really fast.
scree slope. It took us seven hours
up from base camp and three hours “I think this experience gave me a
down, and I’ve never been more better level of resilience, and sense
stoked to see a tent in my life...” of perspective. In terms of accepting
that you can’t always do everything
After South Sudan, she returned to perfectly, but you can still make a
KPMG for the busy audit season, difference.”
before embarking on another three
month mission with the MSF To find out more about
Emergency Cell. They opened a
working with MSF, visit:
project in Bangladesh in response to
the Rohingya refugee crisis, which www.msf.org.nz/join-our-
saw over 700,000 Rohingya flee from team/
the Myanmar military across the
Jessie with Marcello, logistician supervisor, and
border into Southern Bangladesh.
Kuol, a driver in Wau, South Sudan.
KONNECTIONS 2018 | 19KEEPING KONNECTED
The French connection
Dan Shelley & Audrey Landry
ON OUR FIRST DATE, AFTER
HE’D WALKED ME HOME,
DAN’S CAR BROKE DOWN
IN THE KPMG CARPARK. ON
OUR SECOND DATE, WE
WENT TO THE CINEMA AND
HIS HOUSE GOT ROBBED.
SO I’M LUCKY THAT HE
DECIDED TO PERSEVERE
WITH THE RELATIONSHIP...!
Dan and Audrey on their wedding day, at Chateau Frontenac in Quebec City.
Two years ago, Dan Shelley Dan was originally from the UK, and “I loved my time in New Zealand, and
had one stressful day at Audrey from Canada, when they met always say I had the best portfolio of
in 2014 as part of the Auckland Audit clients ever. The variety was great –
the office. He was about team. I worked with several vineyards, and
to undergo an important Les Mills, and I’m still in touch with
job interview at KPMG in A keen rugby supporter, Dan had some of the people over there.”
Montreal – as well as ask come to New Zealand to follow
the English side in the 2011 Rugby Similarly, Dan remembers working
his prospective father-in-
World Cup. on a diverse portfolio, including some
law for permission to marry of New Zealand’s largest companies
his daughter – all in a “I stayed for three weeks and had with global interests.
foreign language he’d only a fantastic time. While I was there
I met up with a KPMG partner and “We had teams all over the world
just learned.
senior manager for lunch – and six we’d coordinate with, and some
Fortunately, he got both months later I was on a plane back to interesting accounting issues we
New Zealand. That was for a two-year were working through. I also had
the job, and the girl. Dan
contract that turned into four and half the chance to work on some listed
and Audrey Landry, who years.” clients for the first time, and getting
first met on secondment to work closely with the Board and
at KPMG Auckland in 2014, Originally from Quebec, Audrey management of these entities was an
started as a grad with KPMG
are now married and living invaluable learning experience.”
Montreal in 2010. Keen on the
in Montreal. They recently outdoors, she figured New Zealand
welcomed their first baby, would be an ideal secondment
William, who they are destination.
raising to be bilingual.
20 | KONNECTIONS 2018Just
Their secondment was also Then in June this year, Dan and
remembered, of course, as the time Audrey welcomed their baby son
when their romance began. However William; and Audrey is now on
as Audrey recalls, things didn’t go maternity leave.
Married
particularly smoothly at the start.
“I’m still getting used to not
“On our first date, after he’d walked working!” she says.
me home, Dan’s car broke down in
“But we’re really lucky in that William
the KPMG carpark. On our second
is already sleeping 7-8 hours a night,
date, we went to the cinema and his
so we can play all day and he keeps
house got robbed. So I’m lucky that
me entertained.”
he decided to persevere with the
relationship...!” French is the official majority language
in Quebec, but many people also
In 2016, Dan took time off work from
speak English; and the couple have a
KPMG Auckland to complete an
plan to ensure William will be fluent
intensive French language course at a
in both.
university in Quebec. His father-in-law
was driving him to the job interview at “We’ve agreed that Audrey will
KPMG, which was the opportunity for always speak to him in French, and I’ll
“the talk”. always speak to him in English; and
that’s how we’ll do it as he grows up.
“Audrey’s Dad doesn’t speak much
We haven’t decided yet if he’ll go to a
English, so I was pretty much using
French or English daycare or school,
the French I’d learned in the past
or a bilingual one, but there are lots of
five weeks, and trying to explain
options.”
the reasons I wanted to marry his
daughter. Then I went straight into my The other member of the family is
interview at KPMG Montreal…which Allie, the couple’s adopted rescue cat
was in French as well. So it was quite from New Zealand. During her time
a stressful day..!” in New Zealand, Audrey volunteered
at the Mangere SPCA every other
Dan went on to plan a romantic
weekend.
getaway for the marriage proposal,
which took place while glamping on “We flew Allie back to Canada with
a remote West Coast beach south us and she’s loving it here.”
of Auckland. The couple returned
The other link to New Zealand is the
to KPMG Montreal in August 2016,
game that brought Dan over to New
where they were both promoted to
Zealand all those years ago.
Senior Managers last September.
“We still get up at 4am to watch the
They also got married last year, in
All Blacks – wearing our shirts – and
Audrey’s home town of Quebec
we haven’t missed any big games
City, at the very romantic Chateau
since we got back. We even went to
Frontenac, which is one of the most
see them live in Chicago when they
photographed places in Canada.
were there. I guess we’ll need to get
some All Blacks gear for William…” Kylie Whitworth and Mark Blyth,
KPMG NZ Corporate Finance alumni,
were married in February this year.
The couple tied the knot at Rippon
Winery in Wanaka, Central Otago,
and even managed a bit of snow.
They currently live in New York City.
Their baby William, born June 2018. Allie, the "ex-pat cat" from New Zealand.
KONNECTIONS 2018 | 21KEEPING KONNECTED
The good oil
Pete Mora’s
Canadian
experience
The Mora family on the Icefields Parkway, the spectacular mountain road running between Banff and Jasper National Parks.
Fluctuating oil prices, Back in 2015, Senior Audit Manager The company was proposing to build
billion-dollar project Pete and his wife Kate decided it was the Northern Gateway Pipelines,
time to “have a bit of an adventure” a $7.9b twin pipeline project from
budgets, fire-ravaged oil while their children were still young. Alberta to the coast of British
wells, and social unrest in Columbia that would export oil to
developing nations. These “We didn’t want too much of a culture Asia.
were just some of the BAU shock, but we thought Calgary would
offer something different, given that it “They’d already invested a billion
events facing auditor Peter
has a pretty real winter!” dollars getting the project to that
Mora during his recent stage; and while I was there, the
secondment to KPMG The opportunity to work in a global Trudeau Government officially
Calgary. hub for the oil and gas industry was announced it was rejecting the
another big drawcard – and it certainly project. As you can imagine, that
As Pete and his family lived up to expectations. Shortly after was not a very happy afternoon at
prepare to return home arriving, Pete was seconded for six the office.”
weeks to Enbridge, a $70 billion-
to KPMG Wellington,
value company which operates the Another much smaller but interesting
he reflects on a busy world’s longest crude oil and liquids client is Canadian-based Wilton
two years working on a transportation system. Resources, which features two former
multinational oil and gas presidents of OPEC on its advisory
“I was tasked with running their
portfolio. board. Formed before the 2014 oil
impairment testing programme for price crash, the company has been
the year-end audit. Enbridge is about trying to arrange an oil development
ten times the size of New Zealand’s and production-sharing agreement in
largest listed company; so from day Africa or the Middle East.
one, it was fairly eye-opening from a
scale perspective.” “They don’t make money, but they’re
able to raise capital based purely on
the reputation of their management,
which is something I hadn’t seen
before.”
22 | KONNECTIONS 2018Corbin, the young ice-hockey fan. A weekend bike ride around South Calgary.
In the course of client work, Pete saw “During this secondment, I’ve barrel of oil. So in a lot of ways, it’s
plenty of activity that’s par for the encountered a number of things been a correction. But it’s still pretty
course in this high-stakes industry. you wouldn’t even consider might tough, even for the good operators.”
He cites the example of one of his happen…and often involving very
The past two years has also created
clients, a Canadian-based producer substantial amounts of money.”
some special family memories.
that operates a number of offshore
assets. Pete’s time in Calgary also coincided
“We’ve seen and done some
with some tough economic times for
incredible things. We experienced
“When I came on the file, they owned the region, as a result of slumping oil
our first White Christmas; and on
assets in Tunisia but they had to close prices. Although Alberta is starting to
Christmas Day, we had about eight
down operations because of social climb out of its two-year recession,
deer turn up our back yard…which
unrest in the region. As auditors, we the effects are still obvious.
was pretty cool. We’ve also spent a
spend a lot of time asking how much
lot of time exploring British Columbia;
these assets are worth…but no-one
it’s an easy day-trip up to Banff and
can reliably say when or if they’ll be
Lake Louise.”
able to produce.
DURING THIS SECONDMENT,
Pete and Kate’s youngest son, Corbin,
“On another of their projects, in I’VE ENCOUNTERED A has even become obsessed with
Romania, one of their wells caught NUMBER OF THINGS YOU Canada’s national sport.
on fire. They had to fly in a crew from
WOULDN’T EVEN CONSIDER
Canada, who fought the fire for 10 “He’s only 2½ and the ice-hockey
days. Eventually they had to abandon MIGHT HAPPEN…AND season has been over for six
the well.” OFTEN INVOLVING VERY months…so we don’t really know
SUBSTANTIAL AMOUNTS OF how it’s happened!”
In other examples, there was the
$3.5m client payment to a Tunisian MONEY. The local temperatures have also
operation that “required us to do a lot offered plenty of variety.
of work to ensure it was not a breach
“We’ve experienced everything from
of the Corruption of Foreign Public “Out of my window at work I look a low of minus 37, to a high of 37.
Officials Act”. In another case, Pete directly across to one of Canada’s At the moment, we’ve got the wild
and his team became immersed in tallest buildings…and more than fires happening…we can taste and
the intricacies of the Albanian legal half of the building is unoccupied. smell the smoke.”
system, and worked with their KPMG Some landlords are allowing tenants
counterparts in that country. to occupy space with no base rent Pete has just returned to KPMG
charges, just to keep the building Wellington, bringing with him many
“The Albanian Government had ticking over. valuable connections among the
frozen our client’s bank accounts. The world’s biggest oil and gas clients.
same client has more than $80m of “The downturn has turned
disputed tax balances that have been everybody’s attention to doing things “It’s definitely something for the CV…
paid to the Albanian Government. better. When oil prices were really to be able to say I’ve done oil and gas
good, it was all about finding the next in Alberta.”
KONNECTIONS 2018 | 23Introducing our
We understand that business is more
than just transactions – it’s about people
and the strength of relationships.
new leaders
Whatever your size, wherever you’re
based, we’re passionate about fuelling
the prosperity of New Zealand.
Partners
Steve Hastings Jesse Phillips Laura Youdan Nick McKay Sonia Isaac Tony Evans
Lighthouse Deal Advisory Audit Deal Advisory Audit IT Advisory
Auckland Wellington Auckland Auckland Wellington Wellington
Directors
Adrian Hardy Ann Au Chantelle Howard-Willis Daniel Webber Dylan Shell
Tax Audit Enterprise Enterprise Enterprise
Wellington Auckland Hamilton Timaru Hamilton
Jane Fletcher Jo Liaw Hickey Leon Bowker Liz Keene Michelle Wicks
Enterprise Deal Advisory Deal Advisory Deal Advisory Enterprise
Wellington Auckland Auckland Auckland Wellington
Associate
Directors
Natalie Berkett Nick Moss Sven Pannell Gareth Jolliffe
Tax Audit Enterprise Performance
Tauranga Auckland Wellington Wellington
24 | KONNECTIONS 2018Lighthouse
We help businesses prosper We can work with you to
by bringing a collaborative transform your business
approach to key business and build client-led solutions
issues, and finding strategic by combining data-driven
solutions based on our technologies and capabilities
capability in data, analytics and with KPMG’s integrated global
technology. network and expertise.
To find out more, contact
Steve Hastings Partner, KPMG Lighthouse
T: +64 936 75827 E: stephenhastings@kpmg.co.nz
Our Christchurch
team have moved
KPMG Christchurch offices are now at
The Terrace, Level 5, 79 Cashel Street,
Christchurch
KONNECTIONS 2018 | 25Work hard, play hard
Our people out and about in
businesses, the community,
and social events.
The Auckland Risk Team volunteers
on Motutapu Island.
Julia Jones takes two students to
the NZX as part of AUT’s Shadow a
Leader programme, Auckland.
Volunteering at
Auckland Zoo.
Taita College mentoring programme,
Wellington.
Hosting Pt England
School at KPMG,
Auckland.
Donating a worm farm
to Ronald McDonald
House, Christchurch. Jesse Phillips attends trip to the US
as part of the 6th Annual Infrastructure
NZ Delegation.
26 | KONNECTIONS 2018Hosting Techie Brekkie as part of Trevor Knyvett presents at a Millennium Our Wellington office makes reusable
Techweek ’18, Hamilton. Farming workshop, Levin. beeswax food wraps.
Ian Proudfoot presents the 2018
Agribusiness Agenda at Fieldays,
Our graduates enjoy Grad Camp 2018 at Te Aroha Marae.
Hamilton
Our graduates volunteer at Tikipunga
Edmund Hillary School Book Drive, delivering over 400 donated books, Auckland.
High School.
The Big Hoot owl trail fun run, Auckland.
KONNECTIONS 2018 | 27Wellington
Alumni Event 2018
When: 1 November, from 5 PM
Where: KPMG, 10 Customhouse Quay, Wellington
Auckland
Alumni Event 2018
When: 14 November, from 5:30 PM
Where: KPMG, 18 Viaduct Harbour Avenue, Auckland
28 | KONNECTIONS 2018Contacts
Auckland Wellington Ashburton
KPMG Centre KPMG KPMG
18 Viaduct Harbour Avenue 10 Customhouse Quay 255 Havelock Street
PO Box 1584 PO Box 996 PO Box 564
Auckland 1140 Wellington 6140 Ashburton 7740
T: +64 09 367 5800 T: +64 04 816 4500 T: +64 03 307 6355
F: +64 09 367 5875 F: +64 04 816 4600 F: +64 03 307 6358
Hamilton Christchurch Timaru
KPMG Centre KPMG KPMG
426 Victoria Street Level 5 14 The Terrace
PO Box 929 79 Cashel Street PO Box 526
Hamilton 3240 PO Box 1739 Timaru 7910
T: +64 07 858 6500 Christchurch 8140 T: +64 03 686 9061
T: +64 03 363 5600 F: +64 03 686 9062
Tauranga F: +64 03 363 5629
KPMG, Level 2
247 Cameron Road
PO Box 110
Tauranga 3140
T: +64 07 578 5179
F: +64 07 578 2555
kpmg.com/nz
Visit: KPMG to stay connected
© 2018 KPMG, a New Zealand partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative
(“KPMG International”), a Swiss entity. All rights reserved.
The KPMG name and logo are registered trademarks or trademarks of KPMG International Cooperative (“KPMG International”). 02641
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