Annual Report 2008 -2009

www.ideasshop.co.nz
Contents

From the Ideas Shop Board 2

Financial Performance 3

People Performance 4

Natural Capital 5

1
From the Ideas Shop Board
The past year can be characterised as one of enormous change in the
business environment in which we work.
In the midst of the unprecedented pace of events, Ideas Shop has
continued to build on the successes of previous years and, we are proud
to say, we remain true to the fundamentals of our vision - “Getting our
clients messages heard and understood”.
“Making the difference” is reflected in the way we treat each other, our
work environment, and our commitment to our clients and the wider
community.
There is a wonderful sense of achievement in having developed a
business model that proves it’s good business to have a practical
commitment to environmental and social sustainability.
Achievements
During the past year Ideas Shop has grown in scale and scope. This
has been achieved despite testing economic conditions that have seen
other communications agencies downsize.
In September 2008, Graeme Nahkies of Boardworks International was
appointed independent chair and a formal governance structure put in
place.
Our successes have included:
+ Client base has continued to expand in both size and diversity;
+ Achieved 29% growth in revenue over the past year;
+ No reduction in activity despite economic downturn;
+ Strong focus on our culture and people, with the result that we
have maintained very low staff turnover – well under the industry
average;
+ Exporting our services to Australia;
+ Finalist in the 2008 Central Regional Sustainability Awards for
Small Business, Emerging category;
+ Finalist in the 2009 International Association of Business
Communicators Gold Quill Global Awards.
Our clients, staff and wider community are what continue to make Ideas
Shop an exciting proposition to be part of.
For the 2009/10 year, the Ideas Shop Board is looking to build on
the gains of the past six years. We have been able to grow revenues
despite the testing economic times and are confident we will be well
placed to use our growing reputation to achieve further growth as
Australasia comes out of the current downturn. We will ensure that
the company continues to be seen as an employer of choice within the
communications sector. And, as we grow, we will remain committed to 2
providing innovative, best-practice solutions to clients of all sizes in the
public, private and not-for-profit sectors.
Graeme Nahkies
(Independent Chair)
Anna Kominik
(Director)
Dan Ormond
(Director)
Mark Russell
(Director)
Financial Performance

The company achieved 29% revenue growth in the 2008/09 financial

year. Expenses grew in proportion to revenue largely due to a
significant investment in senior staff.

Despite the combined effects of the global economic slowdown and

change of government there has been no decline in revenue.

Net profit grew 33% before tax compared with the previous year,
which is an excellent result given the trading conditions.

Significant investment in upgrading IT systems was made with a

new server installed and the majority of laptops replaced to improve
reliability and productivity within the business.

The Board has focused on improving the accuracy of monthly 3

reporting, the establishment of a significant trading reserve and the
management of creditors.
People Performance
The Ideas Shop Team will always be our strength.
During the past year, the organisation has grown from seven to 10
permanent staff, with the addition of a fulltime Office Manager and
two Senior Consultants. Turnover has been maintained at 10% - well
under the industry average.
The company continues its commitment to meeting the diverse needs
of our staff. That ethos has been maintained and built on during the
past year, despite the tougher economic times.
Most of our staff work either flexi hours, part time or remotely because
they study, care for their families, are pursuing their passions or have
a commitment to getting healthy.
Every staff member gets their birthday as a paid day off and we
operate an ‘eight hours a day is OK’ policy for everyone.
Growing our people underpins our performance management and
professional development programmes.
Each staff member has a performance plan, and has at least one
discussion every three months about their work and life goals. These
are incorporated into the business planning process.
There are also fortnightly coaching sessions, and each staff member
has their own professional development budget for professional
training and up-skilling.
Staff are also encouraged to realise their potential and seek
opportunities to profile themselves and their expertise.
In the 2008/09 year, Ideas Shop introduced a Leadership Programme 4
and career path for those with longer-term aspirations in the
company.
Natural Capital
The Ideas Shop strategic plan is founded on our commitment to making
a tangible difference to our environment and our communities. Our
business targets are underpinned by the proportion of pro bono
work that we do, while our day-to-day operations are determined by
our desire to reduce our environmental footprint.
Our commitment to making a difference is focused on the following
groups and entities that have a vested interest in the outcomes of
our business practices:
Our Clients
+ Adding value to our relationships and delivering innovative and
high quality work that makes a difference.
+ Providing a comprehensive break-down of all components of
their account including hours, activities etc.
+ Providing opportunities for clients to ‘hear, understand and
act’ in a manner that is more sustainable, either through
introducing them to issues/causes that Ideas Shop is involved
with or through networking opportunities.
+ Undertaking research to increase our understanding of the
issues facing our clients and the wider business community to
improve the services we offer.
+ Being advocates for ethical professional standards (through
board involvement of the membership of International
Association of Business Communicators).
Client Successes
A measure of the results we help to deliver for our clients is the longevity
of our relationships. Often we are brought on for a specific fixed-term
project that then develops into a much longer term partnership.
Highlights during the past 12 months include:
+ Growing the Ideas Shop employee communications/
organisational communications practice to a point where it is a
recognised leader in change communication, and monitoring and
measuring
+ Being commissioned to undertake substantial internal/ employee
communications surveys in five public and private sector
organisations
+ Successfully providing change communications support for some 5
of New Zealand’s most complicated HR projects, including an
offshoring project, and organisational reviews and restructurings
+ Positioning a multinational accounting firm as a regular tax
advisor for TV3
+ International launch of New Zealand developed software product
in Las Vegas
+ Unprecedented levels of media coverage for a range of high
profile industry awards
+ Winning Ideas Shop’s first large export contract providing
support for a multinational financial institution on a global
launch
Recognised Leaders in our Field
Our reputation is based not only on the successes we achieve for our
clients but also on our research and peer recognition of our work.
Highlights included:
+ Publishing a discussion document on internal communications in
New Zealand, based on the results of an Ideas Shop-led survey
of internal communicators nationwide
+ Finalist in the International Association of Business
Communicators Gold Quill Awards for communications
campaign for the Child Poverty Action Group. The Gold Quills
are an international competition attracting entries from around
the globe each year
The Environment
+ A low carbon footprint – we are committed to reducing
our carbon footprint and are working towards CarboNZero
certification.
+ Recycling – as much as possible we recycle paper and other
waste. We have our own composting system and have reduced
out waste by 50%
+ Using public transport – we use buses instead of taxis wherever
possible. None of the team has paid car parks, which encourages
the use of public transport to and
from work.
The Community
+ Pro-bono projects – including Child Poverty Action Group, See
Here, Philanthropy NZ, Leave No Trace NZ and Presbyterian
Support New Zealand.
+ Donating to charities – we have a budget to donate to charities
including food banks and children’s needs.
+ Seeking opportunities for business and the community sector to
work together and engage e.g. forums, joint projects.
Our ongoing commitment to social sustainability included:
+ Co-hosting a Social Sustainability event with the Wellington
Regional Chamber of Commerce, with Stephen Tindall – brought
together business, community and government.
+ Sponsoring Philanthropy New Zealand’s biannual conference. 6
• Board level participation in the establishment of Leave No Trace
New Zealand, an international minimal impact environmental
education movement.
+ Continuing our work in the corporate social responsibility area.
+ Providing pro-bono and reduced rate support to more than
50 community and voluntary sector organisations around the
country throughout the year.