Examining Kiwibank: beyond the scope of the proposed framework

Based on a review of the data, various themes emerge in support of the proposed framework of strategic entrepreneurship. Further analysis of the data, however, also provides additional insight, by revealing a number of elements associated with Kiwibank, which were identified inductively, rather than addressed within the proposed framework. These elements may be broadly categorised under the headings of strategy, culture, and branding; each of which is considered below.

6.6.1 Strategy

The notion of a very clear strategy within NZ Post is presented in both the Annual Report for 2004, and during discussions with Hogg.

This strong financial performance demonstrates that the strategy we began some years ago is delivering results. That strategy is about growth. We are growing our business by becoming customer driven, reinventing our processes, and creating a high performing culture (Allen, 2004, p. 6).

One of the Post strategies was to leverage the capabilities of the core business (Hogg, 2004).

During the course of the interview however, Hogg also acknowledges that there is at times a mix of strategies both deliberate and emergent (Mintzberg & Waters, 1982). In particular, NZ Post’s international consultancy services, which the company was requested to provide following opportunity identification outside the organisation. “We’ve been exporting our intellectual property and built a business around exporting that property since 1994. And we didn’t actually set up a strategy to do that; it just happened” (Hogg).

Equally significant perhaps, is the notion that while strategic entrepreneurship may be driven by strategy, it may also shape future strategy as organisations learn from experience and success, gain an enhanced understanding of what the organisation’s core capabilities are, and look for

opportunities which allow core capabilities to be applied in different ways, and built upon.

Learning from experience is perhaps a reflection of the organisation’s culture; a topic which is considered in further detail below.

6.6.2 Culture

While the data pertaining to Kiwibank and NZ Post do not directly address the notion of culture, further analysis reveals two particular elements which may be viewed as a reflection of the culture within NZ Post. These elements emerge as central to the organisation: confidence in the organisation’s core capabilities, and a genuine emphasis on people.

a) Confidence

Belief in the organisation’s core capabilities and an inner confidence in the organisation, emerge as a strong theme from the data. When discussing the elements central to achieving success within Kiwibank, Hogg (2004) comments:

I think if you were talking to Chief Executive John Allen, he would say ‘confidence’. You have to have belief, a strong belief that this is doable. We were absolutely bound by the belief and the shared vision that [the project team] could do something really exciting to dent the banking industry, and the banking market, and for New Zealand, and which would enable staff to do something they didn’t have the scope to do in other [banking]

organisations.

Thus, an element of self-assurance is seen as central to the organisation, such that new projects undertaken, and the risks associated with those projects, are perceived as manageable. A firm belief in NZ Post’s core capabilities provides the organisation with the mindset and ability to both identify opportunities, and see those opportunities as viable.

b) People

The strong emphasis and genuine value placed upon people emerges from a range of data, and focuses on two aspects in particular: customers and staff. With respect to customers, NZ Post and Kiwibank project a genuine concern for both existing and potential customers; in the broadest sense, the people of New Zealand. The organisation is increasingly recognised as “the people’s bank” (Vaughan, 2005), and during the course of the interview there is a strong sense of the organisation wanting to offer excellent services and “best value” (NZ Post, 2002) to all New Zealanders.

NZ Post sees its role as connecting all New Zealanders “from Kaitaia to Invercargill” (NZ Post, 2002). Having the resources to do so is a reflection of NZ Post’s extensive infrastructure. Having a genuine concern to do so is a reflection of the organisation’s culture. Reach is something the organisation seems to be proud of, and applying that reach to remote locations, is something NZ Post seems to sincerely care about; the importance of connecting New Zealanders, and offering them the networks to facilitate that connection.

Our customers are at the centre of our plans. We are getting closer to them so that we can gain a better understanding of them. Only then can we truly deliver the products and service experience that they are looking for (Allen, 2004, p. 7).

Hogg also reinforces the importance of customers by inadvertently blurring the distinction between customer relationships and formal partnerships, often referring to customers as partners.

Further probing during the discussion of an arrangement initially referred to as a partnership, reveals the legal relationship is actually a customer one. “Actually they’re customers. They’re customers with their [own] customers, so we’re the middle man. Philosophically, they’re partners”

(Hogg). This perception is indicative of the very strong customer focus, and responsibility NZ Post assumes, to ensure it provides successful customer focused solutions which allow customers to achieve success in their own businesses (NZ Post, 2004).

With respect to staff, appreciation of and concern for people within the organisation also emerges as central to the organisation’s culture.

The rapid growth of Kiwibank has at times been challenging for our frontline staff. I acknowledge their dedication and that of the Kiwibank team, and their contribution. No organisation comes close to matching our human presence in the communities we serve.

We are a people business. We value people and we aspire to make Post a great place to work. This is both a philosophy and a commercial choice. Our successful future depends on taking our people with us as we grow (Allen, 2004, p. 7).

This is further evidenced through staff satisfaction survey results exceeding target (50 per cent of staff rating satisfaction as “great” or “very great”), the introduction of a formal process for staff discussions on the challenges and opportunities NZ Post faces, and where the organisation is heading. “This process has demonstrated the tremendous spirit of Post people characterised by good ideas and great enthusiasm” (Allen, 2004, p. 9).

It is during discussions with Hogg (2004), however, that the importance of staff in a variety of contexts becomes a recurring theme. With respect to opportunity identification, Hogg notes such opportunities existed at both an organisational and individual level, and shows a genuine

enthusiasm for the opportunity offered to experienced bankers in the market to build a new bank.

She refers very bluntly to the growth strategy as necessary not only to maintain the organisation’s profitability, but also to “keep our people employed”. And during the course of the initial interview, various stories unfold regarding the development of specific employees.

We have a lot of people who have worked in the core processing business, who have at some stage turned into international consultants. One example is a woman from Christchurch in the business mail centre, who is also very good at the methods we have for protecting our revenue; a whole set of procedures. We got a contract to run the Trinidad and Tobago postal services, and one of their issues was that they were losing far too much money because their revenue protection activities weren’t good enough. So who should we send to Trinidad and Tobago? Let’s send Michelle, because she knows all about it. Well to hear her talk about it brings tears to my eyes. In their first five days of being there she had [identified] many process improvements which would save them approximately $9 million. And so imagine how she felt. And they just thought she was absolutely wonderful. It was a wonderful confidence boost. She didn’t realise that what she does every day was sellable. We’ve had a lot of lovely stories about people going over, being part of a team, and making huge strides in their confidence (Hogg).

Hence a focus on people both external and internal is an important element of the culture within NZ Post.

6.6.3 Branding

One final theme which emerges from the data is the profile and branding of NZ Post. While Hogg (2004) notes that NZ Post has established itself as a New Zealand institution, a New Zealand icon, she also comments briefly on the use of other brand names as a deliberate strategy within the group. Kiwibank has of course, adopted its own brand, and will continue to do so. Transcend (formerly New Zealand Post International Limited) has been used as the brand which provides international consultancy services since 2000. “We have a belief that how you structure and govern the company is important” (Hogg). Hence, although Hogg notes the importance of

“promoting [NZ Post’s] name on the international stage” in the context of the global postal industry; the organisation also sees the benefit of establishing separate brands for variations or applications of its core capabilities in other contexts (e.g. consulting).

A summary of the later findings with respect to Kiwibank and NZ Post in general, is detailed in the table below. Specifically, Table 6.2 provides a summary of additional themes emerging from the case, which are beyond the scope of the proposed framework. Such themes may offer further

insight into strategic entrepreneurship as general construct, or more specifically into strategic entrepreneurship in a government context.

Table 6.2 Additional elements relevant to strategic entrepreneurship in the context of Kiwibank

Additional elements relevant to SE Identification of element within Kiwibank

Strategy • both deliberate and emergent

• contributes to the success of Kiwibank and is influenced by it

Culture

• confidence

• people

• pride in its image as a NZ icon, and genuine concern to serve & connect New Zealanders

• confidence in the organisation’s core capabilities

• strong focus on people including staff, customers, and the people of New Zealand

Branding • benefit identified in establishing separate brands for different applications of NZ Post’s core capabilities (e.g. consulting)