A Sad Day - An Era That Changed Australia Concludes

It seems a little silly to be sad about the “passing” of an aircraft.

Today marks the final flight by a Qantas branded Boeing 747 aircraft.

For my generation, the Boeing 747 changed our lives. It’s capacity, operating efficiency and reliability reduced the cost of international air travel. Europe was 24 hours away and with a commitment to saving, affordable. Likewise, the United States.

For those just 10 years older, travel to Europe was most likely a sea journey of some weeks duration. Air travel being far too expensive.

Consider this, Qantas took delivery of its first Boeing 747 in 1971. Just 10 years prior, the Australian cricket team travelled to Britain by sea.

The world was changing and now we could more reasonably observe the change and participate in it too. The 747 literally helped educate, expand our imaginations and remove our sense of isolation. It literally changed Australian society.

My first flight on a 747 was from Melbourne to Christchurch in 1978. Back then, it would more likely have been referred to as a “Jumbo Jet”.

I was with a tour group of student teachers from Burwood Teachers College in Melbourne’s East earning my seat by way of my soon to be qualified then girlfriend.  

I have very fond memories of a wonderful 2 weeks touring the North and South Islands, wonderful sights and experiences and a little party time as well.

I have less wonderful memories of an evening in Christchurch immediately followed by a commitment to never drink Bundaberg Rum again. 42 years later, this commitment has never been further away from being broken.

I enjoyed further 747 travel experiences in the 4 decades that followed. Perhaps my most spectacular experience was the night approach too and landing at Hong Kong's Kai Tuk International Airport.

 

 

However 747 experiences were becoming rare as increasingly, it was a Boeing Aircraft with a different “7” prefix or a rival manufacturer with an “A” in its name that was taking me places.

My final 747 flight was Brisbane to New York via Las Angeles (and return) in 2015 where the prime objective was to run the New York City Marathon.

These New York and return flights were my first by 747 in perhaps 8 years. It might have been sheer coincidence that they were also the smoothest, most comfortable long-haul economy flights I can remember. I have never slept longer or more soundly in flight.

 

Such was the ease of these flight, I vowed I would return to America and New York in particular before the 747 was retired. Unfortunately, a certain virus has hasten the end of the Qantas 747 some 4 years before originally planned.

Today’s last flight left Sydney airport, circled Sydney looking one last time at the Harbour and its bridge, and at an opera house that was not completed when the first 747 touched down in Sydney.

I am not suggesting I shed a tear at the end of the Qantas 747 era, rather a nod of respect skywards.

To the Jumbo Jet, the Boeing 747, thank you for bringing the world closer and for helping make Australian Society more travelled and diverse. May this last aircraft rest in peace in the Mojave Desert, California having served us proudly.

"They who know the cost of everything, know the value of nothing”. - Talking QInvest 3rd and Final

QInvest was destined to end the day integration with QSuper was decided. Looking at it now, it was the inevitable outcome.

Culturally, operationally and philosophically, they are polar opposites.

Consider this:

QSuper is a successful, well operated Superannuation fund. Its ongoing success depends upon reliably managing high volume processes and delivering consistent standardised solutions.

QInvest was a successful, well operated Personal Financial Planning Practice. It’s ongoing success depended on reliably consulting with people face to face, getting to know and understand them and being trusted with their more confidential and personal information to then produce a unique, tailored financial plan.

The things that make QSuper great don’t apply, or largely do not apply to QInvest. Equally, the reverse applies.

Let’s look quickly at some specifics:

QSuper has a large IT division keeping about 1000 staff operational. Most of these 1000 deal directly or indirectly with the day to day transactions of more than 500000 members. Geographically, there are only 3 locations.

The necessary structure of an IT division required to look after a large number of people and members is quite different to the more tailored needs of Professional Financial Planning.

As hard as QSuper IT tried and as committed as they were, QInvest would surely have absorbed time and expense that far exceeded it overall impact on the QSuper Group. They also had to consider 9 separate geographical locations.

Human Resources and associated policy was another challenge.

The skill sets and personality needs that make for excellent QInvest recruits are quite different to those required for QSuper. Several unfortunate appointments resulted.

QInvest was much smaller and before integration had it’s own HR area. Understandably, this was able to be far more nimble and responsive than the much larger QSuper HR. This is not a criticism, but an understandable reality based on size.

I recall a mind numbing conversation with a Senior QSuper HR Leader. QInvest and QSuper had quite different maternity leave policies with one being clearly more beneficial than the other.

Many months in to integration, QInvest had been absorbed in to a more cumbersome and less flexible remuneration and reward process however addressing maternity leave was progressing at a snail pace or (I suspect) not at all.

In discussing the concerns around this, I was treated to a long rant about the difficulty involved in deciding what to do with maternity leave. This rant included citing as an example the problem presented by staff fresh fruit deliveries. QInvest had fresh fruit delivered monthly whereas QSuper received a delivery 4 weekly. (or it might have been the other way around)

The fact that these 2 issues were considered comparable staggered me and that each was equally difficult to resolve was disheartening.

Eventually, and after much damage to morale and the creation of further suspicion and dilution of trust, the maternity leave question was resolved to the benefit of all. I have no idea and like most, did not care what the resolution was to the fresh fruit dilemma.

I also believed HR lack of understanding and lack of appreciation for QInvest differences were reflected in several senior staff appointments.

In my opinion, the first unfortunate appointment was the Chief Manager in 2012.

Sure, he came credentialed and was experienced, enthusiastic, well travelled and determined. His bank background meant the focus would be on cost rather than value.

There is a wise saying:

“They who know the cost of everything, know the value of nothing”.

He set about fulfilling his mantra of delivering more with less. He preached lowering the “cost to serve” while never seeking to understand just what service was valued.

The second unfortunate appointment (in my opinion) was Head of Advice in 2017. I will refrain from sharing my opinion and the opinion of others concerning this appointment. Except to say it was a surprise to see what values seemed to be important to QSuper.     

I think I am correct in saying he departed after about 12 months. I suspect by then QSuper was losing its appetite to seek a sustainable operating model for QInvest.

There are other factors as well.

Horizon was a large project aimed at stripping cost. Many talented committed people worked incredibly hard to deliver an outcome within a time frame they said was half what was needed.

Errors were made in the costings of a key service and base figures were overestimated.

Significantly, 6 months after the start of implementation, the majority of recommendations were discontinued, re-designed or significantly diluted.

I am in no doubt at all that QSuper had totally honourable and long term intentions for QInvest. Equally, I do not believe the differences between what is a successful superannuation fund and a successful Personal Financial Advice business were ever understood, by either QSuper and QInvest.

With each successful conclusion of a piece of the integration puzzle, the end of QInvest drew closer and inevitable.

I praised the professional staff at QInvest in part one and will conclude by doing so again.

The ability of the Financial Advice, Para Planning and Client Support Teams to put aside their own concerns and pressures and to continue providing a professional, quality reliable service to clients has been exceptional.

The commitment to clients has been unparalleled and like so many things, it is perhaps only now as the days tick away to the end of QInvest, will the absence of a Personal Financial Advice service be truly and fully appreciated.

Finally, to all my former colleagues at QInvest, thank you for having me as part of your world for 7 years. It will always be a period of time I am proud of.

 
I consider you granted me a great privilege having me along for the ride.

Talking QInvest Part 2 - Integration

This part two of a 3 part series “talking QInvest”. If you haven’t read part one, here is the link

In Part two, I want to look at some of the events that perhaps led to the decisions taken.

Looking back, the script for QInvest withdrawing Personal Financial Advice services commenced being written in November 2012.

In the 3 years prior to November 2012, several key changes took place. They included:

1.    Taking difficult decisions during the GFC including some redundancies

2.    Implementing a full comprehensive service and a fee component for Personal Financial Advice

3.    Introducing a service whereby a client could contract for a fee, an ongoing Financial Advice relationship with an Adviser

4.    Established a permanent presence outside of Brisbane

5.    Having been jointly owned by QIC and QSuper, sole ownership was assumed by QSuper

6.    Functions such as Finance/Accounting, Human Resources, Property Management, Education and Marketing, Legal and later IT were taken over by QSuper

The QInvest I joined was a nimble organisation capable of having an idea, developing it, making a decision and either executing or dismissing the idea and moving on.

Just short of 50% of QSuper Members, and by definition QInvests client base, lived in regional areas. At the end of 2010, QInvest had one full time Adviser and one permanent office in Townsville and she was the only Adviser north of Chermside in Brisbane. There was an office and Adviser at Robina on the Gold Coast and another in Toowoomba operating out of a room adjacent to the food hall at Toowoomba Town Centre. Cairns, Mackay and Rockhampton were serviced on an adhoc, fly in fly out basis.

18 months later, we had offices established in Cairns (2 Advisers), Townsville (2 then 3), Rockhampton (2 then 3), Sunshine Coast (2 then 3) and Toowoomba (2 then 3).

Almost from day one, demand for personal advice in these newly expanded regions exceeded capacity and it was common (and embarrassing) for clients to have to wait 4 months or more for an appointment.

The establishment of this Regional presence was an example of QInvest’s ability to make quick and important decisions and then execute the decision.

We were self contained with our own Human Resources, IT, Strategy, Property, Legal, Education and Marketing areas and had control of our actions and outcomes. We were all responsible and accountable for what we did, no excuses.

This independence was changing. Now fully owned by QSuper, it was understandable and logical that services be rolled in to existing and larger areas of QSuper. QInvest HR dissolved in to QSuper as did Finance, IT and everything else. What was left was the Personal Advice operation, Advisers, Para Planners and support professionals.

QInvest became another department of QSuper, another cost centre and challenged to operate in a world that required a far more bureaucratic approach.

More so the differences in the two entities and the very different worlds and markets each participated in was never really appreciated or understood. QSuper was by far the larger more significant business and QInvest now under it’s wing and reliant on it for all services,

QInvest was a very small piece of the QSuper puzzle.

It became evident that QSuper was focused more on the cost of QInvest and not the return or value. To be clear, there is a sound argument that the focus was correct.

QSuper had an experienced HR department, however there was little understanding of the different skills and requirements needed for Financial Planning.

QSuper had a dedicated group of IT people, however they struggled to understand, or even remember that about half our services were delivered outside of Brisbane CBD.

QInvest also needed it’s own highly tailored software platform. This was difficult for QSuper to understand or accept and absorbed an inordinate amount of time and effort for even the most simple change.

Perhaps the biggest difference was QSuper people including Executive Leaders, never really understood the value of Personal Financial Advice for a Member. I am not being critical when I suggest all but 2 executive and senior leaders could concisely articulate to a member in easy to understand language, the benefits of engaging in the Personal Financial Planning relationship with an Adviser.

In my opinion, the single biggest loss was that of the dedicated QInvest seminar and marketing team.

The seminar team comprised all former Financial Advisers. They understood the process of Personal Financial Advice and could articulate the value of the service. More importantly, their absolute belief was evident in the passion with which they spoke and presented to groups of members.

When this team dissolved in to the QSuper education team, QInvest and by definition Personal Financial Advice became another box to be ticked as one part of a full QSuper centric seminar agenda.

It was always unacceptable and often embarrassing that wait times for an appointment with an Adviser was at least 4 months and often over 6 months in every office in the QInvest network. However, it was no coincidence that in the space of 18 months and the absorption of the QInvest team in to QSuper, this demand disappeared and Advisers regularly had spare capacity to meet with clients.

Concurrent with this was the folding of the QInvest call centre in to the broader QSuper phone contact team. Again, the clear and concise understanding QInvest staff had of Personal Financial Advice became another script to use when part of the QSuper group.

I want to be clear about something.

I am in no way being critical of the QSuper Education and Seminar team or the QSuper contact centre teams or Leaders. All were dedicated and committed. Being asked to address and explain a service in Financial planning that is totally different to a superannuation fund, and have this service just one of many topics was a big ask and inevitably, the message would be diluted and distilled.

Consider this example.

A business producing and retailing a range of computer keyboards each tailored to the user’s individual hand size, finger length, typing ability and key stroke strength is highly successful because of the expertise and passion of the people. A one on one meeting is held with each client to determine what is required, the unique keyboard is designed, produced and delivered. At regular intervals, the client meets again with the business to confirm the design still meets their needs and any changes deemed necessary are executed. For example, arthritis in one hand may require larger touch keys. Supporting the service is a team of staff you understand the service and its vale. 

Now, consider what would happen if that business was taken over by JB HIFI. I’ will leave that with you.

In Part 3 I will delve in to a significant personnel appointments, the world that was HORIZON and draw some conclusions.  

I need to talk about QInvest - Part One

QInvest is the Financial Planning entity owned by QSuper, one of Australia’s largest superannuation funds, QSuper.

QInvest provides personal financial advice to members of QSuper.

I worked for QInvest for nearly 7 years from October 2010. It was a most rewarding period of my career and bluntly, the ideals by which QInvest executed its responsibilities makes finding another employer with similar commitment difficult.

QInvest financial advice recommendations were based on each individual clients personal goals and objectives and evidence was collected, expected and retained supporting the exploration of such goals.

First and foremost, a strategy was devised, discussed, explained and agreed followed by the selection of products needed to execute the strategy.

There was no financial incentive whatsoever to select one product over another. There was no incentive to complicate a strategy. The size of funds being advised was not relevant to any individual or collective performance assessment. The number of clients helped was a key performance indicator together with the quality of the advice provided. More was not better; better was more.

I always considered there to be a purity about the way QInvest or we executed the craft. This feeling of ourity was reinforced when following the hearings and subsequent recommendations of The Royal Commission into Misconduct in the Banking, Superannuation and Financial Services I

On Thursday 2 July it was announced that QInvest would soon cease to provide comprehensive personal financial advice. My understanding is this is not a Covid-19 or pandemic driven decision.

I have long held the belief that any organisation is entitled to change direction, re-structure or cease all or parts of its operations. I have accepted that changes result in different “people needs” and some may leave, be surplus to requirements or re-deployed. Change is necessary.

Notwithstanding, it is difficult to believe QInvest Clients, QSuper members or the financial service sector is better for not having an organisation such as QInvest provide the comprehensive services it has since 1974.

QInvest has a right to feel great pride for what has been achieved over 26 years and more so, for the way business has been conducted. I am personally proud to be a QInvest alumni.

QInvest implemented an Advice model and fee structure that allowed proper financial advice to be provided to clients that needed it but for whom many other providers would not be interested in delivering.

A 35 year old school teaching couple about to have their second child is an example I often used to outline the unique offering of QInvest. Typically, this couple would have low disposable income, low investable assets and usually quite high debt by way of their principal place of residence.

They would also benefit greatly from financial advice covering some or all of risk insurance, education saving, debt management, estate planning and cash flow planning. The QInvest model allowed such advice to be provided when many, maybe most alternative financial planning models would not be able to provide a service for more than perhaps risk insurance.

In addition, I was always proud that the part time cleaner at the rural primary school would receive exactly the same service, attention to detail and professional thought and scrutiny of quality as would a Departmental Director, Police Commissioner or Minister of the Crown.

I have worked for several banks, funds and institutions. I know of many more. All claim to have their customer, client or member as their sole and primary priority. From my observation and experience, only QInvest (and QSuper) state such a mantra then assertively prosecute it – from the bottom up, and back down again.

Most of all I am proud to have been associated with many wonderful QInvest people.

I have spoken to several QInvest Financial Advisers and one Para Planners who were present for the announcement on Thursday 2 June. All were disappointed and all were accepting if also frustrated.

Advisers in particular were concerned for the very many clients they worked with year in year out, particularly those they had helped through the loss of parents, partners and in some cases children.

They were concerned for the ongoing diverse financial needs for clients who were disabled or simply very naive financially. They were concerned for clients who they had worked with to bring them back from the brink of bankruptcy to again moving forward in their financial life having ceased systemic credit card mis-use and gambling habits. Would these people continue to prosper?

There is a difference between a member of QSuper and a client of QInvest. A large difference of incalculable value.

QInvest people, know them as people. They know their faults, hopes and dreams. They know their fears concerns and weaknesses. They know their health challenges.

I will always remember observing an Advice meeting where the client had untreatable terminal lung cancer and a time frame of 3 to 6 months at best. The comfort and understanding they expressed to the QInvest Financial Adviser following a very challenging meeting was as moving as it was sad. They not only knew their family would be taken care of financially, they understood how and trusted the ongoing assistance their partner would receive from that QInvest Adviser after they past away.

This is not an isolated situation. On many occasions QInvest Advisers attended meetings with clients and their families at home and in hospital knowing there were weeks, sometimes less to go.

Other Financial Advisers do similar but it was the culture of QInvest people to do this. QInvest Advisers on the whole accepted this was their duty and privilege to help. There was no tangible incentive to do so.

And then the impact on clients became just a little more personal for me.

Not long after the news of QInvest’s withdrawal from Comprehensive Advice services became public knowledge, my messenger on Facebook pinged.

The sender was someone I first met when we were both 14 years of age. It is many years, decades even since we have had any meaningful contact.. She told me she is a QInvest client and asked if I knew (name of Adviser). I did not know she was a client of QInvest or of said Adviser until she told me via messenger.

She had retired quite recently having done so after working towards that goal with the help of said Adviser. I was asked if she would still be able to see the Adviser revealing a review meeting had recently been arranged. Not wanting to say anything that could be misleading and given I no longer work at QInvest I suggested she call or e-mail and mention if comfortable she had spoken to me.

She called several times only to have the phone go to message bank and emailed. Distressed she came back to me and not making any promises, I offered to help.

I messaged the Adviser, explained what had happened, the distress of the client while acknowledging comforting her may not be their first priority right now.

Shortly after, the Adviser called her.

A measure of the QInvest culture and a measure of a culture that I am not sure QSuper as its owner understands is for all said Advisers concern for their own families well being and their own career, they promptly called the client and prioritised addressing their needs and fears.

It is not surprising that an Adviser would be professional and make contact. Equally, it would not be surprising if they had left the call for a day or until after the weekend. But no, they called within an hour of hearing of her distress and concern.

To be continued

Part two will be out on Thursday 16 July 2020