Zac: Don, having a decentralized business, whats been your approach to leadership? It has largely grown earnings and revenue since 2008 and tripled its share price between early 2009 and today. Where do we need to be? Braid, who joined Mainfreight through its purchase of Daily Freightways, says the company hasn't let the last few years of economic upheaval dull its ambitions. While the group had deferred capital expenditure during early 2020, it had recommenced land and building projects during the year, with net capex totalling $118.6m, of which land and buildings accounted for $58.9m, plant and equipment $26m, fit out costs of $15.6m and information technology another $18m. His intellect and pragmatic approach is highly regarded at the Board table. [10] In August 2013, Mainfreight and the family of Wim Bosman reached an out of court agreement for compensation to the tune of 8.2 million or $14 million. Don: For us, its not about the short game, its about the long game. Also, such solid returns might lead to shareholders warming to the idea of a bump in pay. Don Braid. I really want to be in front of those customers! The firm has earned a reputation within the market for being slickly-run. Cash flow is essential for any business survival. Some people dont want any more responsibility they find their own ceiling and thats fine. Plested says that within a few months of the firm's acquisition of Daily Freightways, which became Daily Freight under Mainfreight ownership, he came to recognise Braid's strengths. By the way, its not just about us seeing those numbers. Should it change? Zac: Don, what makes you good? He brings strong financial skills and business acumen to the role. As a Government Minister, Richard was responsible for creating SOEs, deregulating telecommunications and broadcasting, reforming ports, airports, railways and aviation. The trick is to decentralize it and to give them control of the profit and loss, allow them to have sufficient KPIs, and measurement systems to monitor those as quickly as possible so that nothing gets out of control. Private parking spaces are also banned at Mainfreight - the group managing director has to find himself a spot in the carpark each morning after he drives through the front gate. Managing director Don Braid said the result was pleasing, particularly in light of supply chain congestion and ongoing lockdown disruptions in most of Mainfreight's markets. On the Money: Tim Boyd he's back; James Lee he's leaving, and more New drugs could end the worlds obesity epidemic, Big plus for NZ schools and govt agencies, Growing wealth through our cities growth, Insurers call on government to seize the day, Smoke, mirrors and delay Nationals three waters policy, Former CentrePort CEO Liz Ward joins KiwiRail board. As weve matured and grown around the rest of network, were now learning things that we can bring back to New Zealand. You can be profitable and not collect the cash and go broke. See guidance for chairs and directors. The NZ team, who had really done a great job through the Kaikoura and Christchurch earthquakes, quickly put together a plan on how to react. Formerly Halford Young, Halford is a private logistics company and freight forwarder with operations and networks in Australia and New Zealand, Japan, Germany, throughout Asia and the United States.[6]. Richard Prebble is by profession a lawyer. Weve needed to adjust, particularly in the international sector, air freight charters rather than just normal air freight our people had never had any experience in chartering a full plane. Group managing director Don Braid said it was a significant result for the Mainfreight family, achieved during a tumultuous time in the worlds history and with success in every one of the five regions the company operated. While many companies have been battening down the hatches this year, Mainfreight has been on the acquisition trail - purchasing a Netherlands-based freight business which operates in Belgium, France, Romania and Poland and Russia. Initially wed take 10% of that profit and share it equally with everybody in the branch but as weve developed and gotten a little more sophisticated, weve applied quality stats to the numbers. When other international airlines are finding their wings clipped, this straight talking, and well regarded leader, has proved his point. 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Zac: What are your thoughts on driverless trucks and how they will affect Mainfreight? So you need to make sure youve got succession planning to be able to work on the dream that youre creating. "We need to try and paint the picture around Mainfreight here and what Mainfreight is, that to me is of more interest than whether I like rugby or cricket. Forsyth Barr analyst Rob Mercer said the market had confidence in Mainfreight after it managed to grow revenue and market share and outperform its peers during the global financial crisis. Brent is a senior reporter based in Queenstown. It only represents a small part of our revenue, but . So for the first couple of weeks of lockdown in New Zealand, we were wondering, how deep is this going to go? And I suppose the key thing that we had in our mind was how are we going to run this business to survive and not make anybody redundant. Moreover, Don Braid also holds NZ$171m worth of Mainfreight stock directly under their own name, which reveals to us that they have a significant personal stake in the company. I think its about ready-fire-aim: making sure were steady, allowing decisions to be made, and shaking them up as we get on. In 2006 the New Zealand Mainfreight International and Owens International businesses were also merged to make Mainfreight Owens International Ltd (now Mainfreight International). Though his father was a truck driver, Timaru-born Braid can't recall being influenced by this. Its a huge level of success and theres satisfaction you get from that. Getting decisions made as close to the customer as possible is probably our secret and giving that responsibility to those in the branches. Zac: Can you share more about your profit share? Mainfreight people, he says, don't "live in question marks". Managing director Don Braid said Covid-19 fully tested Mainfreight's resilience, but it also necessitated some fundamental commitments. Those are the real world indicators of whether youve got morale correct or not or whether youve got some issues going on you need to address. "If you allow the recession to roll over the top of you there's a great chance it will.". With Covid, the New Zealand team would meet every day for the first four weeks during lockdown. He believes in fostering an innovative culture in the organisation and encourages top performances from his teams. For us its about pushing the decision-making as close to the customer as possible, getting those people to make decisions rather than pushing them upstairs for someone else to make. The Biosecurity Business Pledge group has launched two new biosecurity guides. Educated at Timaru Boys High School, Braid has been described as possibly the most self-effacing leader of major listed company in New Zealand and is widely regarded as straight-talking and strong leader. Mainfreight is the fourth largest company in NZ, doing over $3 billion in sales and over $300 million in EBITDA, with physical assets of $1.5 billion and debt of less than $200 million. Hamish. Today he chairs a group of telecommunication companies. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Don has over 40 years' experience in the freight industry, including 26 with Mainfreight. What havent we got right? He is an outstandingly consistent and capable chief executive. Who wouldnt want exposure to the retirement sector? Both are real legends and seem to really walk the talk. Chosen from New Zealand's top companies, this year's Deloitte . Some of the leading players in the listed retirement sector have been raising capital. He previously worked for the Otago Daily Times, after a return to business journalism in 2018. Get in touch with us directly. Whilst describing the foundation of Mainfreight in 2000, Plested said to the New Zealand Herald, "We moved all our freight by sea between Auckland, and Christchurch and Dunedin, and we worked weekend shifts to make sure we loaded and unloaded the ship using the whole of the seven days - we found that was faster and more reliable than our big competitors."[4]. [2] In 1979, Bruce Plested partnered with Neil Graham, with Graham based in Christchurch and Plested in Auckland. "We were exposed to Covid-19 quite early in the piece, probably earlier than many others because of our operations in China. I could not get out of the car and go and meet a stranger to ask for the business and now I actually prefer to do that! Don has over 40 years experience in the freight industry, including 26 with Mainfreight. Don from Mainfreight talks to Fisher Funds. Mainfreight will pay a discretionary bonus of $43.9 million, up 61% from last year's bonus of $27.3m, after a record result to March which saw net profit up by $40.1m to $188.1m. That includes a new facility for Owens Transport in Penrose, Auckland and additional land in Nelson, Hastings, Cambridge and Wellington. By becoming a supporter, you'll be helping us expand our independent journalism for the business community. And if you surround yourself with really good people, the stress is actually spread across everybody and you dont wear it all on your own shoulders. [7] This takeover was in response to the purchase of Tranz Rail by Australian transport firm Toll Holdings. See the full transcript below. Mainfreight managing director Don Braid. Their understanding of disciplines and what the expectations are embedded early on so our culture is strong and then you give them responsibility. We applaud that; weve always paid every supplier on the 20th of the month following and we ask the same of our customers. Don: The recruitment of our people sits with the branch managers. Prior to joining Air New Zealand, he held range of senior management positions both within New Zealand and overseas, including roles with the National Australia Bank, Bank of New Zealand, Telecom NZ and ITV Group in the UK. I think the only measure of whether weve got the culture right will be seen in the numbers and in the customer service. Rising inflation and labour shortages have added to the Covid-19 melting pot, crippling global supply chains and trade growth. Since the acquisition of the Wim Bosman Group the eurozone has spiralled to the brink of economic disaster, but 52-year-old Braid says doing business on the debt-ravaged continent is nothing other than an "exciting" prospect. [4] This operation was expanded with depots in Melbourne and Brisbane. In 2008, the United States locations were re-branded as Mainfreight USA. Our subscriptions start at $24 / month for individuals. Zac: As the leader of Mainfreight, what do you personally focus on to get the team going in the right direction? Zac: Can you share what some of the great ideas youve actually brought from overseas have been? They have over 8500 staff in 280+ locations across 28 countries, so it was pretty cool (and humbling) for us to be able to chat to Don with some of our Business Changing clients recently. We dont call them staff for us, they are our people or our team. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance. "It's just a little rule that we've had because if they [analysts] keep calling us a trucking company they clearly haven't done their research.". Don Braid Your email address will not be published. Early in the piece at Mainfreight, leaders are given responsibility, so the ability to take responsibility and to make decisions is pretty important. Part of our recruitment process is to get them to go through the system and learn the business from the floor up: you start by pushing a broom or running documents to Customs. Aside from travel (usually), customers, and communicating with those in other countries I spend my time in front of our people and our leadership team, no matter where they are located. Your email address will not be published. I just have a belief and determination that weve got a pretty good business here. His company has been a shining example of success amid tough global economic conditions. [3] [4] When the company was founded it entered a highly regulated transport market. He is highly respected and success-driven executive who has made Kiwibank fly when many thought it would struggle to get off the ground. In that respect, NZ was the worst effected with weekly revenues during April 2020 down by about 40% on average levels. Its even more exciting doing that in offshore markets with a really big customer where youre actually sitting in front of them and we know we will turn our industry upside down by winning quite large business off the incumbents. In November 2014, Mainfreight acquired a regional air and sea freight company located in Dunedin. Save my name, email, and website in this browser for the next time I comment. We have been monitoring government updates regarding COVID-19 and are keeping up to date with Ministry of Health guidance with regard to events and public gatherings. Mainfreight was founded on 6 March 1978 by Bruce Plested who started the company with just $7,200 and a 1969 Bedford truck. He has led the company in strengthening its global logistics business and ensuring an increased diversification of revenue streams across many countries, trade lanes and activities provides natural protection for earnings. Weekly operational reports are posted on the wall of the company cafeteria in Otahuhu, where all team members, including Braid, eat at a single, long table. Our thoughts are with our members and their organisations impacted by Cyclone Gabrielle. Out of that, I think weve got the culture really starting to develop. In April 2007, Mainfreight announced its intentions to sell its Pan Orient Project Logistics business and its 75% interest in Lep Australia and New Zealand to global logistics company Agility Group for A$83 million. As a Kiwi living in England and studying management currently, I have really enjoyed reading this interview. "There's no bureaucracy or hierarchy or superiority in the business. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Youve got to think about that as small groups of people looking after our customers and each group is important in their own right and theyll have their own little traits. Zac: Whats a bit of business advice you can share? The price of the rights fell as low as 7.5 cents on the last day of trading. +64 27 403 0148+64 9 905 4804Jill.Steffert@iod.org.nz, The Auckland Branch acknowledges the generous support of. And if you dont make a profit, theres no bonus that year. What more could I be doing in the business to actually grow my revenues in these difficult times? COVID-19 has had a significant impact on freight and supply chains worldwide. He attributed the. Wishing you the best in England and when you return to NZ. He likes to surround himself with clever, energetic people who are equally as dedicated as him to meeting and exceeding the needs of Mainfreights customers. Zac: Lets talk more about those weekly P&Ls. Between 1994 and 1997 Mainfreight started acquiring former competitors, such as, Daily Freightways and Chem Couriers in 1994, a 75% shareholding in Lep New Zealand in 1996, and Combined Haulage and Senco Haulage in 1997. They know that now and can alter those decisions as they head into the week in front of them. Zac: Im keen to understand what do you think are common reasons why many businesses fail to reach their maximum potential? I learned that early in the piece and I think its stood me in good stead. "Don gave this glowing account of [Daily Freightways] and I kept looking at him and thinking 'what a lot of bullshit'," Plested says. The opportunities offshore and the populations that exist in some of those other countries are large; you only have to get something half right in some of those countries and youre growing a big business compared to what you have here in New Zealand. Chief executive, Kiwibank So I think cashflow is king and Id be focused on that. So weve got eight and a half thousand people and 282 locations. Im not sure well see driverless trucks in NZ for some time to come. His visits to our local and overseas operations guide our teams to be sales-focused and always aiming for operational excellence. The reality is, this leadership team in New Zealand has been through the earthquakes and the GFC and now the pandemic. DCB had a staff base of five employees on the date of acquisition, however, staff was expected to rise to seven employees. And in applying that New Zealand blueprint to all regions, we knew we were pretty much in control. I give them the ability and the responsibility to deliver, and I give them great support and lots of guidance. Our data indicates that Mainfreight Limited has a market capitalization of NZ$6.0b, and total annual CEO compensation was reported as NZ$3.0m for the year to March 2020. For me its being in the business, with people and in particular with customers. If our team on the dock is seeing poor decision-making thats eroding profitability, they will suffer because they share that profit so there comes internal pressure just as much from them as there is from us, looking at how the business is progressing. Don Braid, Group Managing Director of Mainfreight Limited, was educated at Timaru Boys High School and has over 43 years experience in freight forwarding and logistics both NewZealand and internationally. JUDGES COMMENTS Early on, New Zealand had great lessons to take to the rest of our network. It has been listed on the New Zealand Exchange since 1996. He knows where the company is going and, more importantly, how it will get there. As we noted earlier, Mainfreight pays its CEO in line with similar-sized companies belonging to the same industry. Although the pay is close to the industry median, overall performance is excellent, so we don't think the CEO is paid too generously. "You can imagine what they need to eat, drink and use," says Braid in the boardroom of Mainfreight's building in Otahuhu. Target has offices in 35 cities throughout the United States and an international network of agents in over 70 countries.[15]. Business in the Americas also saw an improved performance, with a 29.7% increase in profit to US$25.93m, with Mainfreight's air and ocean division benefiting from resurgent demand from customers and market share gains in the US. More importantly, the people in those branches know what they did last week, and which were the right decisions or the wrong decisions. Hi Tanya. How do you maintain a positive culture and a time of crisis? Is our service or a product still current? Mainfreight is a truly brilliant organization who sees all staff and their Franchises businesses as friends not employees. So Don, my first question is whats been your main focus the past two months during Covid times and leading Mainfreight and global business? But, he said, the groups response at the outset of the pandemic had been unequivocal. So all the bureaucracy that goes on is increasing the amount of time that well see some of those things arrive. That's just a smallish increase of 6.9% on last year. I think weve done 17 to date since Covid and weve got another six or eight for the next two weeks just for New Zealand and theyve adapted. "He's sporting and tough and makes decisions quite fast," Plested says. What do those customers look for from us? Braid consistently delivers for shareholders and stakeholders alike. Don: Sometimes I think people dont recognise or believe or have enough passion in what theyve developed. Privacy policy Photo / Supplied . It doesnt matter what the worlds thrown at them, theyve shown they are capable of dealing with it. BusinessDesk has a paywall for most of its content. Other finalists were: Briscoe Group managing director Rod Duke, NZX chief executive Mark Weldon, ex-Fonterra chief executive Andrew Ferrier, Xero founder Rod Drury, LanzaTech chief executive Jennifer Holmgren, Ngai Tahu Holdings Corp chief executive Greg Campbell, TZ1 founding chief executive and former Microsoft New Zealand chief executive Helen Robinson, Farmers/Whitcoulls owners David and Anne Norman and Ryman Healthcare chief executive Simon Challies. Offices are outlawed, even for Braid, whose desk is situated in the corner of a large, open-plan room occupied by the company's national team. Other Current Directorships: Information and Communication Services Limited (Chairman), Seronic (NZ) Limited, and his family companies. "He never talks about himself and always talks about long-term goals," Hunt says. | Theres a video of it happening and what was really exciting was once the clock came off the wall, you could hear the laughter and the clapping and the voices of approval from those who were watching. Brent had an extensive career in corporate communications and strategic consulting, including for a range of public listed companies. Those people become good leaders early in the piece they might be only leading a couple of people by the time they make branch manager status but they understand the roles of leadership within Mainfreight. For further information, please contact Don Braid, Group Managing Director, telephone +64 9 259 5503, +64 274 961 637 or email don@mainfreight.com. And thats why we travel a lot when you visit, you can smell the morale in an instant. He has led the company in strengthening its global logistics business and ensuring an increased diversification of revenue streams across many countries, trade lanes and activities provides I might get a little bit wound up about stuff, a bit passionate about things, but I think you cant get so involved that you think about nothing else. Chief executive, Mainfreight Its great fun. Previously, Don was a Political Columnist at Calgary Herald. Media enquiries Don: I think empathy is really important. In May 2011, Mainfreight established a CaroTrans branch in Santiago, Chile. If were going to build facilities for our people, we build very good facilities to be around for a long time. Mainfreight was founded on 6 March 1978 by Bruce Plested who started the company with just $ 7,200 and a 1969 Bedford truck. The long-term effects must be carefully studied. Rob Fyfe Check out our latest analysis for Mainfreight. Grant Samuel & Associates Ltd. Kate brings to the Board her broad financial and analytical experience acquired in a range of industries, both in New Zealand and overseas. That's ambitious, even . Two other directors joined KiwiRail's board earlier this year, Rob Jager and Ed Sims. Mainfreight is the fourth largest company in NZ, doing over $3 billion in sales and over $300 million in EBITDA, with physical assets of $1.5 billion and debt of less than $200 million. [17], "Shareholding Information - Mainfreight Limited", "Mainfreight co-founder Neil Graham dies", "Road transport regulation a controversial measure to protect railways", "Mainfreight announces agreement to acquire Halford International", "Mainfreight breaks into Europe with $227m acquisition", "Mainfreight sues for $18m after shock client loss", "Mainfreight gets $14m payout - drops Euro claim", "The Wim Bosman Group becomes Mainfreight", "Mainfreight sells Pan Orient Project Logistics and its 75% shareholding in LEP (New Zealand and Australia) for over A$83 million", "Mainfreight Limited (Mainfreight) completes sale of Pan Orient Project Logistics", "Target Logistics, Inc. Agrees to be Acquired by Mainfreight Limited", https://en.wikipedia.org/w/index.php?title=Mainfreight&oldid=1136159997, Daily Freight (NZ), Carotrans (Worldwide), Owens (AU/NZ), ChemCouriers (AU/NZ) Mainfreight Europe (EU), This page was last edited on 29 January 2023, at 01:07. Mainfreight Limited is a New Zealand logistics and transport company headquartered in Auckland. In addition, we use tracking cookies, which can collect information about you and follow your internet activity within our website, and possibly outside our website as well. How are we changing the business accordingly? It is our strong belief that the momentum we have will continue, and will develop at a faster pace than we have experienced in the past, thanks to our people, our network and our culture. By using this website you consent to the use of cookies in accordance with our privacy policy. Weve made this article available for free. Id also be really focused on being in touch with customers. Of course, you might find a fantastic investment by looking at a different set of stocks. He has an enviable track record of integrity and professionalism and wide ranging business experience. Well known for his mental and physical toughness, Braid is often seen working out at The Atrium Club in downtown Auckland, which offers real world fitness for men. His sartorial style was also recognised in 2006 when he was judged the national winner of the NBR Working Style Best Dressed Businessman Awards. Braid has earned a reputation within the market as a straight talker and one of the most effective NZX-50 bosses. CEO compensation can have a massive impact on performance, but it's just one element. Well in Europe they had these time clocks. How do you measure this? Watson said she did not believe bonuses were a way.