eKourier Oct 2017

Kennards Kourier

October 2017

Challenges Confront The Self Storage Disrupters

Murarrie, QLD

As published in Self Storage Insider and Mini-Storage Messenger.

T here has been some noise recently in Australia about self storage industry disruption from peer-to-peer storage providers. Unsurprisingly, this noise often corresponds with capital raising efforts and web site launches. Consequently, I am frequently being asked for a view about the impact and risk to the industry. I appreciate that by diminishing the impact, I may appear as the arrogant ignorant incumbent. Some may even see Kennards as the likely Kodak of the self storage sector. None the less, here I go. Recently one Australian self storage disrupter start-up, Spacer, has stated an ambition of growth to achieve 8-10% market share of the markets it operates in. It has also raised capital and successfully acquired a US peer known as Roost. Spacer were not the first, joining a list of peer-to-peer storage disrupters who attempt to match people with some spare room with people who need more room. In principle, the idea seems sound and should get some traction. What is old, is new again... The idea of people renting out their spare space to others is not new. It has happened

informally for decades. Word of mouth often enabled people to share their space with others that needed it. In the past (well before the internet), The Trading Post (for those too young to know “The Trading Post” was a weekly newspaper publication that listed stuff for sale, wanted and for rent. It had literally everything you could imagine, even “Jousting Sticks!” It was available at every newsagent) had a section of “Garages to Rent/Wanted.” Moving forward, now in the digital era platforms like GumTree have an abundance of garages, sheds and storage spaces listed. This proves there is a market for peer-to-peer storage. What these new peer-to-peer platforms are attempting to do is enhance the consumer experience with a slick tech solution. A quick Google search and investigation revealed the following P2P self storage disrupters have emerged (or not) around the world: • Storage-share.co.uk (UK and Netherlands) • Spacer (Australia and now USA via acquisition of Roost) • Roost (USA) (recently acquired by Spacer) • Spaceout.com.au (Australia) (web site looks dated and dormant) • Spacelli (USA and Aus) (Web site states

their activities have paused after launch 1, web site says they are coming back. Wait for launch 2) • Spacefinity USA (Appears it failed to launch) • Storemates UK • Storenextdoor UK (P2P/Aggregator) • Stashbee UK • Yeswestock UK • Sharemystorage.com UK How big is the market anyway? While the latest disrupter aspires for 8-10% market share we should understand the size of the markets. Courtesy of Urbis Australia, they advise the following estimates of market supply: Sydney 74,557 spaces Melbourne 69,098 spaces Brisbane 38,909 spaces 182,558 spaces From this, we can easily estimate the targeted share of spaces. Growing to 18,000 spaces across these markets is a formidable objective. All sizzle and no sausage? I assume the sponsors of these disrupters believe that an easy-to-use Cont’ Page 2

1 Kennards Kourier October 2017

FEATURES

WHO’S WHO

10 Questions... With Mark Mallinson - Mittagong Centre Manager

Challenges Confront The Self Storage Disrupters con’t...

In this issue Challenges Confront Self Storage Disrupters 1/2 10 Questions with... 3 Team Member Profiles 4 In the Beginning... 5 Customer Feedback 5 Uncork Success/ Murarrie Huddle 6 What Drives Engagement 7 80% Blue, Momentum 2016 Strategy 8 From Avoidance To Self-Actualisation 9 Customer Feedback 9 The Great Achievers 1011/12/13 Let’s Hit The Refresh Button 14 Customer Feedback 14 Listen To The Growth Opportunities 15 Construction Pipeline 16 Spotlight On... 17 Wine Training 18 Google Reviews 19 Nev’s Notes 19 Kennards Community 20

platform will expand the market and also entice existing people to migrate from their current renting platforms. New ideas certainly get attention, and if they can successfully raise money this does pique media interest. Elegant lookingApps and slick web sites add some excitement, even perhaps a look of credibility for a new concept. Everyone loves tech and it is enticing to believe a fortune can be unlocked (sorry, bad pun) with the right solution and idea. Interrogating the corporate backgrounds in some of the web sites, the sponsors and founders of the disruptors often make claims about ‘revolutionising self storage’; becoming the ‘airbnb of self storage’ or have lofty ambitions of market share expectations. Curiously, I couldn’t find a single founder who actually came from the self storage sector. Maybe that doesn’t matter, but it does make one wonder if they genuinely appreciate the drivers, behaviours and preferences of self storage consumers and the market? Challenges and Obstacles... I have a number of observations of the challenges and obstacles the P2P storage operators need to overcome to go from all sizzle to some sausage. -> Security and Privacy - storage customer put great value in the privacy and security of their goods. If they use someone’s garage or shed, how much comfort can they have the owner won’t rifle through their gear or leave the room exposed to security breach? A common self storage buy-line is ‘you lock it, you keep the key’ which impresses the complete privacy and certainty enjoyed by self storage customers. Potentially the storer may have access to the house if it’s a spare room could be a security issue. -> Access, Convenience - having free unrestricted access is very important to storers. This poses 2 challenges, one from each side of the transaction. Firstly, the storer may feel uncomfortable coming to someone’s home garage or shed regularly, in the evenings and on weekends to go through their stuff. The established self storage operators invest heavily in making access flexible, easy and convenient. Secondly, the owner of the space may wish to protect their own privacy and restrict access to certain times. -> Tenure of Storage - Storage customers are understandably uncertain about the length of time they will store. In addition,

almost without fail they store for longer than they intend. Unlike short term rentals like car parking and AirBnB, storage is a long term commitment. In my business, the median length of stay is 36 months. The storers often move away too. This presents another two reciprocal challenges. Firstly, for the storer, they will want certainty. Certainty that the vendor won’t sell; have their lease terminated; move house or just be asked to leave at any time. Secondly, for the vendor - what if they want to move home and they have a storer using their garage? What if they simply don’t like it and want their garage back? They will be burdened with the additional complication of getting the storer to vacate. This is often not very easy. -> Scale and Network - There is an obvious circular challenge for the self storage P2P aspirants. They need scale (a lot of rooms available) and a diverse footprint to make their platform meaningful, useful and most importantly, viable. If they manage to attract potential storers on to their platform, and they repeatedly fail to have a space available to satisfy the query the user experience will be poor. They won’t come back. My instincts are that they will enjoy their best enquiry levels where space is already at a premium, and as such they will probably struggle to get the scale in listings. In my business, there are many high demand markets where I would like to build more spaces, but can’t. Similarly, I doubt they will be able to source space to match the users in the high demand areas. There simply isn’t that much spare space in the inner urban densely populated areas. The low barriers to entry for competing platforms to emerge could potentially also dilute their ability to get scale. Obviously without scale, the model won’t be viable long term. The 10-15% service fee will feel slim as they attempt fund operating expenses and product development, in particular battling for real estate on Google - which is akin to an arms race. In closing, scratching below the surface of concept and veneer there are real challenges with regard to consumer preferences and vendor obstacles. How the P2P storage providers overcome these will determine their future. I don’t see it as being very easy; as such it is reasonable not to harbour great concern about their impact on the self storage sector.

Neil (Right) with his son Dylan, ready to cruise the South Pacific

Next issue Deadline: December 1st, 2017 Editor: Sharon Dux Email: sharon@kss.com.au Distribution: January 12th, 2018

How many years have you been with KSS? You left us and then came back! I have been with Kennards for 11 years all up. I left for about three years only to return for the better. What centres have you worked at during your time with Kennards? I worked at Campbelltown1 for eight years as Centre Manager. When I came back to KSS I started back again at Campbelltown1 as Assistant Manager for nine months before taking on the challenge as Centre Manager of the new Mittagong centre at the time. When did you first become a Centre Manager? I first became Centre Manager in the January of 2004. What would you say is the best thing about working at Kennards Self Storage? People and Interaction with customers. There have been many interesting characters throughout the years with stories to tell. Also working with many great co workers. What have been the challenges along the way for you?

term goal to be heavily involved with the success of the company till retirement when ever that may be. Goals outside of the business is to be able to travel to as many different countries as possible. Would love to go back to Singapore to see the changes since I was last there in 1972. Unusual storer or things stored over your many years with KSS? The most interesting storer was at Mittagong. I have watched this storer in his spare time restore an old Boomerang War Plane. He has a couple to do, one of which was his grandfathers plane that he flew. The plane was one of the first off the ground to take on the enemy when Darwin was bombed. He also held the speed record in America for a single prop engine. The plane he used he is reshaping and has built a whole new engine which he believes will beat the current world record. He is planning to break the record and fly from Australia to America. This is all happening in one of our Enterprise Spaces!

Though it has been great working with different co workers, it has also been a challenge, as everyone has a different personality and a way of doing things. So the challenge has been to find the balance of harmony in getting things done, which may not always have been my way! Tell us about your role coming up at the new Warrawong centre? I will be Centre Manager at Warrawong, starting a couple of weeks before opening to set up. There is the numbering of all the units and setting up the office and merchandise displays. Also the marketing of the centre to get the message out there to ‘ Store with People who Care’ . What do you do in your spare time? Time seems to fly by when I have some. But when I can I like to garden, go walking along the beach. My wife and I also dine out and enjoy spending time with friends. What short and long term goals do you have for yourself inside and outside of the business? My short term goal within the business is to make Warrawong a success. Long

Upcoming events 20/10 - Hawkes Bay Anniversary Day (Napier/ Onekawa /Hastings Closed) (NZ) 23/10 - Labour Day - Mt Eden, Three Kings, Wellington P.H. Hours, All other NZ Centres Closed (NZ) 7/11 - Melbourne Cup (VIC) - PH Hours 16/11 - VIC Christmas Party 17/11 - S.A. Christmas Party 20/24/11 - NZ Christmas Parties 23/11 - Sunshine Coast (QLD) Christmas Party 24/11 - QLD Christmas Party

1/12 - Sydney ACT Christmas Party 25/12 - Christmas Day - KSS Closed

26/12 Boxing Day - KSS Closed 1/1 - New Years Day - KSS Closed 2/1 - Day After New Year’s Day - All NZ Centres Closed (NZ)

To sum up KSS in one word? Delightful

Sam Kennard Managing Director

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2 Kennards Kourier October 2017

Brookvale Team Member Profile WHO’S WHO Cheryl Skelton Assistant Manager Career background: Jared Mobbs Centre Manager

FEATURES

In The Beginning There Was Paper

Customer Feedback “Good location and facilities, great value for money. Store Manager (AZAM) has been very helpful and accommodating on all occasions. I highly recommended.” “Scott at Vermont is a very helpful staff member. I grossly underestimated my storage needs, called Scott, and he was quick to help upgrade me to a larger space on the spot. Highly recommended.” “As a removalist I do several moves into or from storage facilities. I have found Kennards Fortitude Valley to be friendly, helpful and easy to deal with when moving customers.” “Excellent service from the get-go from the minute I walked in the manager Leigh at Maroochydore was excellent and very helpful, he was the difference all in all and would recommend him and will be back when I need storage again.” “These guys are great to deal with at Camperdown. Everyone that works there has been so helpful and gone beyond what I expected to helping us out. The place is clean, well lit and access is easy. They might be a bit more expensive but if you need 24 hour access I wouldn’t look anywhere else if you need something around Camperdown. A big thank you to Karen and Ross, you have both been amazing to deal with as things have been difficult it was nice to find a couple of people who actually know the value of customer service and did all they could to make life as easy as possible with what we needed there. Thanks guys.” “After a long drive from Sydney I was feeling a little daunted and overwhelmed with what dealing with the storage unit might entail. I was so impressed with the staff that I spoke with on the phone, via email and in person. They were supportive, helpful and professional and even helped me get my padlock out of its tricky package! I recommend Warana.”

Seaford Meadows, S.A.

Career background: Delicatessen Manager and Retail Manager for Kmart (USA). Marital status: Married, widowed and now in a relationship. Any children? Two; Danielle 33 and Banjamin 31. Hobbies/interests: Cooking, Gardening and Reading. Do you play any sport or have any special talents? Professional Dog Handler. Favourite book/s: Magician Trilogy by Raymond E. Feist.

15 years with Woolworths starting out as a ‘Checkout Chick’, making my way up to Relief Store Manager. Marital status: Recently Married. Any children? No Children. Hobbies/interests: Sporting events, playing Poker, Restaurants and the Movies. Do you play any sport or have any special talents? Not a bad Poker Player! Favourite book/s: The Lord of The Rings Trilogy. Favourite movie: The Prestige. Favourite restaurant/food: Aqua Dining, Milsons Point. Where did you grow up? Split between Rydalmere (just down from KSS) and the wild west of St Clair. Any pets? No pets. Favourite holiday destinations: New Caledonia by Cruise.

I n May 2017 KSS commenced a new era with the introduction of Digital Storage Agreements. A total of 12 Centres in NSW are part of our Rent Now Pilot Team. The responsibilities of the Pilot Team are to participate and provide feedback to the IT Development Team on behalf of Operations and Customers. The participation, commitment and contri- bution from the Pilot Team ensures that Digital Agreements will be “bug free” for all users. When will I get my tablet? Funny you ask that... At this stage Digital Agreement can be completed at home on a desktop computer. With no instore tablet the Pilot Centres in August achieved an average of 41% of all new move ins on Digital Agreements, with 6 /11 centres achieving over 50% Digital Agreements and the highest centre achieving 80%. These figures have been achieved by promoting to the customer the ease of completing at home and making the move in day able to complete a Digital Agreement on their own phone and tablet. ‘ By the end of October KSS customers will be

stress free and encouraging comple- tion of the Agreement as digital. As at mid-September we have 782 customers on Digital Agreements in the 12 centres.

Favourite movie: Me Before You. Favourite restaurant/food: Asian.

Will we really need a tablet?

Where did you grow up? Northern Beaches. Any pets? Grey and White Cat called Skye. Favourite holiday destinations: America.

Centres comment about how easy the Digital Agreement process is and how much time it saves. All data is entered into Storman automatically and filing is “in the cloud”. The move in process on the day for the customer is a padlock and Drivers Licence - Easy. By the end of October KSS customers will be able to complete a Digital Agreement on their own phone and tablet. Once we have this through our Pilot Centres we expect to expand the Pilot to additional centres before the end of 2017. Rent Now is a two year journey for KSS, over this time our plan is that every centre will be completing Digital Agreements and further the aim is to be 99.9% paperless. Jeff and I would like to acknowledge and thank the Pilot Centres in the program. Without their commitment and contribution we may not have achieved so much so quickly – Castle Hill, Rydalmere, Brookvale, French Forest, Mona Vale, Warriewood, Hornsby, Thornleigh, Macquarie Park, Pymble, Chatswood and Erina. Carolyn Coates NSW Operations Manager

Michelle Cooper Assistant Manager

Rebeca Correa Assistant Manager

Career background: Customer Service for the last 16 years, importing and re-distributing of 100% recycled paper. Marital status: Single. Any children? None, but plenty of Nieces and Nephews. Hobbies/interests: Motorbike Rallies, Horse Riding, Sailing and Swimming.

Career background: Owned a Car Shop in Brazil when I was 21. Sales Assistant for Primark in the U.K and at My House in Australia. Marital status: Married. Any children? Yes, Sophia aged six.Very alert and mature.

Hobbies/interests: Riding my bike and travelling. BBQ’s with

‘

Do you play any sport or have any special talents? When I was younger, but now my talent is staying upright on my Motorbike! Favourite book/s: To Kill a Mockingbird. Favourite movie: Strictly Ballroom. Favourite restaurant/food: Mum’s Lamb Roast. Where did you grow up? Northern Beaches with sun, sand and Surfiing! Any pets? Horses, Dogs, Cats and Chooks. Favourite holiday destinations: Favourite would be Blue Mountains and Southern Highlands. Interesting Place by 4WD would be to the tip of Cape York via The Old Telgraph Track.

family and friends. Do you play any sport or have any special talents? I am artistic and love crafts. Favourite book/s: Eat, Pray, Love by Elizabeth Gilbert. Favourite movie: Butterfly Effect. Favourite restaurant/food: Braza and Manly Italian. Where did you grow up? In Brazil surrounded by family in a countryside city. Any pets? Two Guinea Pigs. Favourite holiday destinations: Chile, Argentina, Dubai, Abudhabi, France, Germany, Amsterdam, Belgium and the U.K.

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5 Kennards Kourier October 2017

CENTRE NEWS Uncork Success - Mt Eden Wine Storage Expands

FEATURES

What Drives Engagement

A s the Mt Eden wine cellar occupancy continues to more wine cabinets to meet customer demand and fully utilise the entire area we originally built. Originally when we converted the Mt Eden basement level from car parking to storage, we dedicated an area for wine cellars and we were able to provide the first purpose built Wine Storage Cellar in the Auckland region providing 69 units. We were unsure at the time over the unit mix, so decided to fit out only two thirds of the cellar with a mix of sizes starting at 12 case and then increasing up to the 90 case size. Rather than leave an empty space, we used some spare panels/doors left over from previous unit conversions to create two extra-large 660 case size cellars for some bulk wine customers who have been cellaring with us ever since. matures, it was timely to fit out the remainder of the cellar with

Roll forward to now and with the rent up of the original cellars being so successful we will continue the momentum and finish the fit out of the cellar. Taking out the two bulk size cellars and increasing the inventory with more of the popular 48 case cellars, and providing nine black swing door 200 case cellars, for those storers who’s collection have grown larger. It is also an opportunity to tap into the restaurant and food market which is becoming more common. The project will result in better revenue earnt per square metre with the new cellars and grow the number of wine customers who store with us. The wine community is a small niche market and as we look ahead to the final plans for fit out of our new Wairau Road site in Auckland in the 2nd half of 2018, we may consider including wine units in that sites unit mix to continue the success of Mt Eden’s wine storage.

do their work, when they do it, and who they do it with. Self-direction is at the heart of motivation. This is about TRUST. With high trust comes greater returns, the Freedom to experiment, create ideas and innovate. People can make a meaningful contribution and that contribution is deeply appreciated. Our values have been framed around the principle FREEDOM, in particular “Empower”. Team Members have the ability to make decisions, make mistakes, suggest and try new ideas. You may say that’s not true. May I share an analogy, there are guiding rules around a football game, however a player’s creativity can produce a positive outcome within the guiding rules of the game. There are road rules but the path you take is up to you. Some of these rules are there based on regulation (sadly) some are there to support a promise to customers, some are there because they have been proven as the right way to go about things. That doesn’t mean you can’t be creative, and the path can’t change to achieve a better outcome. 2. Mastery The confidence and competence to think, act and solve problems. A deep desire to learn and improve often referred to as a growth mindset rather than a fixed mindset. Satisfaction comes from learning something new, or getting better at something, a job well done where you can see the results of your efforts. Mastery comes from stepping outside your comfort zone and doing something that isn’t easy, it will challenge us, stretch us and mistakes may be made. Mistakes are the best teachers. There is a line in the book that says, Mastery is an asymptote. You can approach it, you can hone in on it, and you can get really close to it. But you can never touch it! You will never get it; the joy is in the pursuit! We never stop leaning! We are committed to personal and professional development for all our Team Members, our goal is to make every Team Member better than they

were when they arrived. I love a quote by Sir Richard Branson who say’s “Train your people well enough so they can leave. Treat them well enough so they stay”. Our ongoing training programs continue to be worked and developed with the aim of achieving the best outcome for our people and our business. something bigger than ourselves, we are doing something that truly matters and will make a difference. Deep engage- ment comes from people who believe in what they are doing, they are pushed by a cause greater than themselves. Dan explains that this is the balance between Autonomy and Mastery. A strong purpose is a stronger motivator than rewards. Purpose is an intrinsic motivator it comes from inside, rewards are an extrinsic motivator that comes from outside like pay and bonuses. Another analogy, this time from the book, if you pay your son or daughter to take out the trash you can guarantee he or she will never do it again for free. The greater purpose is to help and contribute to the family and maintain the home. As part of my growth once a month I attend a CEO networking group called TEC, I am also privileged to attend conferences and listen to great speakers. To top this off I have discov- ered the world of ‘Podcasts’. You can listen to amazing speakers on topics of interest at your convenience, and not to forget TED Talks available on YouTube. Since reading the book, whenever I hear or read about the topic of engagement, motivation, or satisfaction, although the delivery and the words might be different, I can fit the themes into the three principles that Dan talks about in his book. Dan’s message has provoked thought on how we do things and how we continue to foster an environment that promotes autonomy, Mastery and Purpose. The book is available in the KSS library. Darren Marshall General Manager 3. Purpose This is about working towards

Andrew Kirkham NZ Operations Manager

QLD Huddle Shows Off New Murarrie Centre

“Drive” by Daniel H Pink. A book that explains what motivates people and drives engagement in an organisa- tion. He breaks it down into three fundamental beliefs. But before he goes into these three principle beliefs he explains a little about what he refers to as the old Management Operating System that is now out dated and proven ineffective. Traditional Management was about compliance and control, rewards and punishment. “I tell you what to do and you do it”. Henry Ford famously once said “Why is it when all I want is a pair of hands, I get a brain attached”. This is no longer the case in the modern era; organisations need the whole person including the brain to create a wealth of knowledge, ideas and experience. Dan Pink explains to engage the whole person the right environment needs to be created in which the following three ideals can be created; 1. Autonomy People crave autonomy over how they

debrief on the day that was and of course a good laugh with Beers and Pizza all-round, plus of course, some bubbles to celebrate getting together and the opening of the new Murarrie centre.

Hope to see you all at our next Huddle.

Nichola Goodwin QLD Operations Manager

Our First QLD Team Huddle for 2017 was a great opportu- nity for the Murarrie Team to show off their new centre which opened in late July this year. It was great to see the Team make the effort to come out on such a cold night, well cold for Brisbane anyway. Team Huddles are great way to get to know each other outside the day-to-day work environment, have a bit of a

Above, L to R: Cameron Ferguson Chermside,Wayne McLaren Virginia, Nerissa Lucas Murarrie, Chris Rankin Chermside, Nicky Goodwin QLD Ops Manager, Gordon Iyere TSM, Glen D’Souza North Lakes and Mazen Trabolsi Murarrie

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6 Kennards Kourier October 2017

CULTURE 80% Blue, Momentum 2016 Strategy

CULTURE

From Avoidance To Self-actualisation

Customer Feedback

“Storage facilities were very profes- sional and organised at Warriewood, with a tea room on hand which I loved. Also, I found your shop with boxes and everything that one might need priced very reasonably! Staff were extremely helpful.” “Exceptional customer service. Very professional, very helpful and great to deal with. We couldn’t have been happier with the level of service and courtesy and help given to us at Tauranga.” “I have been most impressed with the friendly staff at Napier Kennards. Josh and Jonathan have both been very helpful and great to deal with. They went out of their way to walk me through the process and went out of their way to help me out with sugges- tions re best packaging to use etc. Josh even called me to let me know that a more suitable unit had just become available and he would hold it for a few days until I could get to see it. This is the unit I have since booked and moved my gear into.” “Excellent customer service at Macquarie Park, clean and tidy facili- ties, easy access to trolleys for moving items into and out of the storage unit. Overall a seamless experience with Kennards.” “The staff at Kingsgrove were helpful, professional, had very nice manners and answered my query when I was overseas within less than a day. I appreciated that alot. I only had a small amount to store but of high value to me.” “Great people who deliver great service, great storage facilities what more could you want ... well done Kennards Frenchs Forest!” “Very helpful, pleasant staff. Borrowed your trailer with a cage and canopy free of charge. It was the deciding factor in choosing Kennards Artarmon.”

A t the last KSS Momentum, Our Strategic Planning Conference held in May 2016, Kennards committed to our Company values of ‘FREEDOM’ for individuals to make decisions, achieve, grow and prosper. Additionally, from Momentum 16, one of our main objectives as a business is to achieve an 80% ‘Blue’ culture. Momentum is a strategic planning event to help grow and develop Kennards and align Teams over the next few years. Momentum is a time we review our company values, foster ideas, set objectives and action plans for future business improvement. It is normally held every three years and is attended by invitation to passionate KSS individ- uals across our entire business. The 2016 Momentum was also attended by KSS Board Members. What is Momentum? Momentum 16 determined our purpose to Create The Space For Change , our dream to become a Famous Household Name, to achieve 90% occupancy , and a yield of $30 per/sqm across the entire portfolio. To achieve this we are reminded that our cultural growth is about achieving an affilia- tion with encouragement with all Team Members being involved. Our Strategy

our Company values and the trust we have with others.

The word ‘blue’ and the connotations of ‘being blue’ has quite an interesting word association of the meaning or a word phrase. Most people associate the word ‘blue’ with something positive such as the colour of the sky (no bleak weather), being something spontaneous or unexpected ‘out of the blue’ or even just the ‘blue’ wave lengths tuning to a positive flowing direction. A company’s culture impacts on customer service and Teams in a business environ- ment on a daily basis. Our OCI (Organisational Cultural Inventory) Circumplex incorporates the ‘blue’ Constructive Styles of people having positive satisfaction levels, and positive task and people orientation skills. To achieve an 80% blue culture, we all need to self-actualise our perfor- mance on how we address, not just with our own behaviours and attitude but understanding how those behaviours and attitudes also affects others in the workplace. It is also about being humanistic encouraging at all times by supporting and developing one another, focusing on being achievement driven individuals and exercising affiliation with ‘

What is 80%?

80% is not a target, it’s a metaphor for growth. Even though we have a positive expectation to achieve an 80% result, we’re not fixated on this number. A company’s culture impacts on customer service and Teams in a business environ- ment on a daily basis. We strive for Team Members to feel they can make a differ- ence and enjoy a work environment. Quite simply our behaviours and attitude characterise how or whether we achieve an 80% result or better with the support and direction from all Team Members within Kennards.

R ecently the Operations Team spent the day with Matthew from Human Synergistics gaining understanding of the OCI and how to influence our Team culture. For me being new to KSS I found it amazing to be able to define some key behaviours and cultural thoughts I have always believed in and to further develop my understanding as a leader about gaining blue cultural momentum within our Team. Whilst working through our learnings at Skillbuilder with the Team, I identi- fied in myself that I have been avoiding a particular task - writing this article! Standing on the Circumplex Mat in the Green avoidance it hit me. Why was I holding back? • Fear of failure. • Fear the article would not display the passion I felt about the subject. • The choosing of the subject itself, would it be accepted, would it be real, would it have meaning and be thought provoking.

Oh dear lets throw in some perfectionistic behaviour for good measure! Whilst standing on the mat I turned around and literally took the step into self-actualisation. I started to understand the cost of my own avoidance behaviour. I was now under some serious time pressure to complete the article – Tick tock tick tock.. The reality of life is we all have a bit of all of the behaviours within us and at different times different behaviours will show for different reasons. Self-Actual- ising as a Team or an individual is about identifying the why or the what is preventing you, so you can move forward. It can be scary and confronting, it can also become a freedom! Don’t let fear hold you back from having a go! So, this article is my first of many to come. Taking that step is challenging and exciting and I hope a down to earth view of taking the step from Green to Blue - Avoidance to Self-Actualising. Nichola Goodwin QLD Operations Manager

80% Blue Culture, it’s now up to you!

Wayne Birch VIC Operations Manager

‘

What is meant by ‘Being Blue’?

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8 Kennards Kourier October 2017

FEATURES

FEATURES

The Great Achievers - 2017 Annual Achievement Dinner

20 Years Service. L to R: Sam Kennard presenting to Wayne Birch VIC Operations Manager, Mike Howard, Manager at Kirrawee and Jenny Smith, Manager at Erina (who unfortunately couldn’t be with us on the night)

SCOTY Gold. L to R Front Row: Mike Howard, Kirrawee, Darren Marshall THQ, Medhat George Castle Hill, Michael Baron Castle Hill, Sylvia Gouvas Waterloo, Mark Fradd Caringbah, Michelle Cooper Brookvale, Matt O’Brien Camperdown, Darryl Lewisson Fyshwick. L to R Back Row: Glen D’Souza North Lakes, Tony Vuong THQ, Leanne Nassif Gladesville, Mark Mallinson Warrawong, Steve Jansen Pymble, Varsha Samji Pymble, David Courtney Kirrawee, Ian Drews Frenchs Forest, Albert Dudley Abbotsford1, Emma Whetnall Hawthorn, John Fenton Abbotsford1, Kelly Lang Hastings, Melanie Owubokiri Mt Eden. (Absent: Gary Stephenson Gladesville, Joshua Johnston Hastings, John Golding Abbotsford1, Colin Haden Fyshwick, Mark Montgomery Mt Eden, Debbie Jones Auburn, Dennis Flack Petersham, Shavarne Scanlan Petersham, Frank De Vlam Guildford, Col Fuller Mittagong, Neil Pardoe Castle Hill, Jim Gavin Castle Hill, Elle Graham Warriewood, Jenny Smith Erina, Clint Thompson Erina, Craig Kemp Klemzig, Robert Todd Klemzig, Matthew Jones Wollongong, Michael Nobbs Wollongong, Kailiam Hood Preston, Carl Murgia Preston, Karly Murphy North lakes, Scott Degenhardt Hornsby, Brad Hampson Hornsby)

I had the pleasure of attending my sixth Kennards Achievement Dinner. Arriving and seeing everyone dressed up is always a delight. The effort Team Members go to and to see them in a lovely dress or suit is a massive change from the regular uniform. The drinks and snacks at the start is a great time to renew friend- ships and meet new Team Members. It was then into the venue and the formal proceedings – I am not sure formal is the exact way to describe proceedings, especially when Tahir is involved! The evening kicks off and just flows until suddenly it is all over and the lights come on. So what happened during the Achievement Dinner: • Sales Excellence kicked off the Achievements – Congrats everyone. • Then onto the 20 year recogni-

tion which saw Wayne, Mike and Jenny recognised for their signifi- cant milestones. There were very passionate words said and some very humorous stories. Jenny was unable to attend but put together a lovely video which was played. • Tahir then rolled out his comedy set. We had some brilliant accents demonstrated by Team Members to the continuous support of Team Bankstown. I certainly hope Darryl Hodgson lifts his game for next year otherwise Tahir could have a field day! • Then onto the Five Year Service Awards which I was a part of. It is incredible how fast the time has gone by and to see who I was on stage with was for me, a positive experience. • Next were the Freedom Certificates

and Awards – this is an opportunity for Team Members to recognise the efforts of each other within the company. Great to see us give our fellow Team Members a shout out. • Then on to the SCOTY Awards for Most Improved, Occupancy Growth, Operational Excellence and Income Growth. • Followed by the Gold SCOTY with 21 centres achieving GOLD – outstanding. • Darren gave us an enthusiastic update on change and Team Members moving on after many years. Positive for both Team Members as they move on to new challenges and also for Kennards as new Team Members bring fresh ideas and challenge the way we operate, to always ensure we strive to develop, learn and grow.

10 Years Service. Above L to R: Presenter Darren Marshall THQ, Sathish Gopinath THQ, Helen Tancred Ultimo, Sandra Mazzitelli TSM Vic, Leanne Nassif Gladesville, David Courtney Kirrawee, Gordon Guthrie TSM Vic, Adam Snowdon Miranda. Right: 10 Years Hands in Cement with Gordon Guthrie and Sandra Mazzitelli. (Absent: David Chapman Artarmon, Bruce Newburn TSM Newcastle, Troy Ellington Kingsgrove)

and the IT and Ops Teams - thanks. The evening is such a positive and engaging evening about all the great things Kennards stands for, celebrating Achievements and FREEDOM. The Achievement dinner reinforces our goal of 80% BLUE. Anthony Rous Chief Financial Officer

• Before one realises the lights have come on and it’s all over for another year. A few brave souls then put on their parachutes and oxygen masks and headed for the AV8 Bar to debrief the events of the evening. The flow of the evening worked very well and the food and service was excellent. In fact, I felt the attentive service was better than normal. The evening would not have run so well without the great efforts of Shaz, Jo

• Darren then presented the 10 Year Service Awards where we had 11 Team Members achieving this milestone. Time was running short and Sathish had to cut his speech down to 45 minutes... They then went through the tradition of putting their hands into cement to seal their achievement forever. The concrete was soft and no one got stuck! • Then it was time to relax, catch up, have a drink and mingle.

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10 Kennards Kourier October 2017

11 Kennards Kourier October 2017

FEATURES

FEATURES

The Great Achievers - 2017 Annual Achievement Dinner

Top left L to R: Sales Excellence - Kelly Lang Hastings, Melanie Owubokiri Mt Eden, Presenter Bill McClean THQ, Maria Katselas Moore Park, Mike Howard Kirrawee, Fritz Holt Moore Park, Johnny Tov Moore Park, David Courtney Kirrawee. (Absent: Lisa Donkin Belmont, Frank De Vlam Guildford, Joshua Johnston Hastings, Mark Montgomery Mt Eden, Karly Murphy North Lakes, Duncan Newington Tauranga) Right: SCOTY Special Distinction - Kelly Lang Hastings, Melanie Owubokiri Mt Eden, Bianca Adattini Bankstown, Mark Fradd Caringbah, Sylvia Gouvas Waterloo, John Fenton Abbotsford1 (Absent: Wendy Jorgensen Bankstown, Najwa Ryan Bankstown, Mark Montgomery Mt Eden, Joshua Johnston Hastings, John Golding Abbotsford1) Middle L to R: Operations Team - Back row: Lynda Walsh, Andrew Kirkham, Tony Vuong, Wayne Birch. Front row: Carolyn Coates, Darryl Hodgson, Nicky Goodwin and Darren Marshall. Middle right: Comedy Spot with Tahir, pictured far right. Bottom Left: Finance Team - Back row: Jayden Jin, Sathish Gopinath, HK Tung, Chi Ly. Front row: Mary Nessek, Anthony Rous, Anastasia Christou. Bottom right: KSS Team Members L to R: Alex Nelson Prospect, Michelle Cooper Brookvale, Ian Drews Frenchs Forest, Max Pearson Mona Vale1, Cheryl Skelton Brookvale, Rebeca Correa Brookvale, Brendon O’Connell Frenchs Forest, Luke Vandenbosch TSM NSW.

Top LHS: 10 Years Service - Geoff Turner Kunda Park. Five Years Service - Chantal Bastiaans Warana and Brett Meekcoms Burleigh Junction. Middle L to R: 5 Years Service - Sylvia Gouvas Waterloo, Goran Vukovic Port Melbourne, Emma Grills Hoxton Park, Max Pearson Mona Vale1, Anthony Rous THQ, Dane Talbot Huntingdale, Antone Boustani Waterloo, John Fenton Abbotsford1, with Presenter Carolyn Coates THQ. (Absent: Flex Dasquerzine Rydalmere, Matthew Jones Wollongong, John Golding Abbotsford1, Belinda Duncan Wollongong) Below L to R: FREEDOMAwards - Wayne Birch (left) and Sam Kennard (right) presenting to Chi Ly THQ, Karen Bell Camperdown and Sandra Mazzitelli TSM Vic. (Absent: Neil Pardoe Rydalmere. FREEDOM Certificates: James Suh TSM NSW and Craig Kemp Klemzig)

12 Kennards Kourier October 2017

13 Kennards Kourier October 2017

FEATURES

PROFESSIONAL DEVELOPMENT

Listen To The Growth Opportunities

Let’s Hit The Refresh Button arranging Triple Pack bags on the wall by pushing slat wall prongs together, improving presentation and sales of this popular product.

Customer Feedback

make sense to listen to as many calls as possible and if I find an opportunity in each call, how quickly would my skills improve? Where should I listen to my call? This can present some challenges in some centres. Where possible I would suggest to try and find a quiet time where you can focus on the call, it may take more than one listen. Look for other Team Members to listen to your call and seek their feedback. Don’t focus on the negative, you can always find positives. Sharing what you have done well may also help other Team Members growth. Why should I be listening? I feel that the incentive attached to the process has created a victim mentality (you better get 100% or it will cost me my bonus). I often hear the Plan To Close Card is a script and “I sound like a robot”. The perception is this is perfec- tionist behaviour, its not it is conven- tional behaviour, its safe to hide behind the process! When we recruit Team Members we look for certain qualities. Some of those are personality and sales skills. Why would we want to hide those in a script and create robots. The Plan To Close Card is a great tool, it is how you use it that can be the issue. Remember Skillbuilder and the Affiliative behaviour set up created great sessions by building rapport. How can I improve? This is simple, be brave, take the risk, be honest with yourself, can you be objective when you listen and ask others for feedback? That’s the easy part. The hard part is actually using the opportu- nities discovered and putting them into practice. I would like to provide Team Members with a challenge, next time you listen to a Mystery Shopper call, don’t listen to find out what the Mystery Shopper got wrong, listen to discover opportuni- ties for personal growth that will benefit everyone. Bill McClean Training & Development Manager

“Dear Kennards Self Storage Team,

I just wanted to send a quick thank you to Kennards for the great experience that I have recently had dealing with the Warana branch on the Sunshine Coast. My partner and I are currently moving from Sydney to the Coast and I needed somewhere to store my car whilst we were in transition. After a long drive I was feeling a little daunted and overwhelmed with what dealing with the storage unit might entail. I was so impressed with the staff that I spoke with on the phone, via email and in person. They were supportive, helpful and professional and even helped me get my padlock out of its tricky package! I will definitely recommend Kennards to others and would love my thanks to be passed on to the Warana office.

Your fast sellers may not need to be in the prime locations, they will sell themselves, why not try putting a slow selling product in a more prominent position. You might be surprised at the results. Other things to consider for your wall is signage, lights and interest. Your Merchandise Wall should have the KSS ‘Box Shop Moving and Packing Supplies’ sign. Does your display have adequate lighting and are all the lights working? Lighting draws a focus to the product. Signage should look fresh and bright. Faded signage gives the impression your products is old. Let customers play, have one of every lock to touch and tape dispensers out of white boxes. When was the last time you really looked at your Merchandise Display Wall? While most KSS centres have very similar Merchandise Display Walls, they are not all exactly the same. KDoc 10500 is a good resource outlining principles and recommendations for your consideration and we encourage you to use this and your wall to get the best possible Merchandise display for your centre and our customers. Love your wall and yes, You can change it! Post your photos, ideas and questions on Yammer. Carolyn Coates NSW Operations Manager ‘ ‘

I n my role I regularly get feedback from Team Members regarding their Mystery Shopper result, i.e. their score. While we accept feedback with anticipation for growth for Teams, it appears some Team Members are missing a fantastic opportunity to learn and develop.

false result and questioned the Team Members consistency. This provided an opportunity to make a change that would provide a more genuine result. We, in conjunction with our service provider, had a Team of shoppers provide feedback. There was a notable drop

I s the statement “Refresh the Merchandise display” your catch all statement when completing your Smart Action Plan for Merchandise? In the spirit of ‘yes we can’ let’s take a minute to consider what else may be possible. When was the last time you really looked at your Merchandise Display Wall? Your Merchandise Display Wall is like storage, it needs high occupancy with every inch having a product to sell or a reminder to buy. Blank spaces are missed opportunities. Merchandise revenue does not grow by filling your wall with stock that is slow selling… so what can you do instead? Fixtures such as baskets allows for merchandising products such as tapes and triple pack bags. Consider the position of your baskets, are they at hand level or foot level. Moving your baskets to an ‘easy touch’ level may allow space underneath for bulky products such as 50m bubble wrap. Centres are also being creative and

‘

To move forward and get the best out of the process we need to consider 5WH: ‘ Don’t listen to a Mystery Shopper call to find out what the Mystery Shopper got wrong, listen to discover opportunities for personal growth that will benefit everyone. in average scores and over time they returned to the mid nineties justifying the change. Who is the process designed to benefit? The process is designed to benefit everyone, it baffles me to hear of Team

Warm regards Rebecca.”

“Thank you so much to all the folks at Kennards West End!

And thanks for the refund on emptying my storage today. Was a delight having the straightforward conveni- ence of local safe storage, just when I suddenly needed it - between two flat rentals and emptying a shipping container of long-stored household goods. I certainly will have no hesitation in using Kennards again if needed in the future, as well as recommending to others your excellent facilities and very helpful staff.

WHAT is the History of the process? WHO is the process designed to benefit? WHEN should I listen to my call? WHERE should I listen to my call? WHY should I be listening? How can I improve? What is the history of the process? When I commenced my journey with Kennards Self Storage the Mystery Shopper calls were conducted by the same person every month in fact she was known as “the Nice Lady”. This defeated the purpose of what we were doing and inflated averages to give us a

Members playing ‘spot the Mystery Shopper’ it is such an energy sapping game to play. Wouldn’t it be easier to treat all customers as the Mystery Shopper creating consistency and driving sales, increasing occupancy and driving all incentives? When should I listen to my call? Where centres have Call Saver Pro the opportunity to learn and develop is there everyday. Maybe the question here should be why do I only listen to my Mystery Shop calls? Wouldn’t it

Regards Súin.”

15 Kennards Kourier October 2017

14 Kennards Kourier October 2017

PROPERTY

PROPERTY

Spotlight on Chatswood

Warrawong, The Next Big Beacon To Open

Warrawong NSW

Warrawong NSW - Civil works 90% complete The overall civil works are 90% with Building A and B enclosed and fitout well underway. Laying of the new driveways has started. Due to open this month. Petersham NSW - Installation of new lift underway The Team have moved into the new Building 3. We’ve now turned our attention to installing the new lift attached to the outside of the existing 6 level building. Chullora NSW - Internal fitout underway The major stormwater channel works are 90%. The new 4 storey building has all floors built, now for the external cladding and internal fitout. The office is locked up with joinery and ceiling to be installed over the coming weeks. Camperdown NSW - Fitout 75% complete All major structural work is completed and fitout is 75% complete.

Croydon Park S.A - Unit fitout to begin soon The new roof and gutters are installed. The self storage fitout will closely follow behind the internal clean-up of the floors and painting over the old walls. Adelaide Airport SA - Negotiating with Builder The Lease is now sorted and signed and we are completing negotiations with the preferred builder. Castle Hill NSW - Main works continue Some minor works is underway by Total Construction in preparation to move the box shop to its temporary location whilst the main works continue. For regular updates follow Michael on Yammer and Twitter. Michael Macheledt & Craig Henery Development & Construction Team

K ennards Self Storage Chatswood is located on the corner of Gibbes and Mann St. It’s only a short drive from Chatswood Westfield, Railway Station and Concourse. Chatswood is a purpose built storage facility. It was previously a large Tip Top Bakery until mid-2000 when it was acquired by Kennards. Although being based in a light industrial area, having the landmark as the old Tip Top Bakery enables customers to locate us with ease. The Chatswood centre has four separate buildings which all join through walkways. Since opening in 2009 with 436 units covering 5,208 square metres, the final construction stage was completed in 2014. Chatswood now has 909 units with 8,266 square metres. Chatswood has a state of the art Wine Cellar with 91 cellars. It has recently undergone some lighting and appear- ance upgrades. Occupancy in the wine

cellar has been above 90% for almost 12 months. A competitor (Wine-Ark) is situated less than 500 metres away. Our points of differentiation are ease of access, security features and option to upsize or

dise sales up 23% year to date.

downsize at any time. It’s an exciting time with us looking at potential ways to expand our Wine Cellar. There are three other storage companies in close proximity to us. The rear of our facility shares the same wall as Storage King. Cheapa Self Storage and recently opened Rent-A-Space are only a three minute walk. Chatswood has achieved solid income growth the last few financial years, ranging from 5 -10%. This current financial year has started positively. Merchandise sales are our biggest area of opportunity. We recently became part of the Online Box Shop Program. It’s had an immediate effect, with our merchan-

Damian Reilly is the Assistant Manager (pictured above RHS) who has only been with KSS for three months. I have been the Centre Manager for close to three years, previously Managing Artarmon and a TSM and Assistant Manager at several centres. Our biggest challenge is trying to find continual storage solutions for our commercial customers. We have seen numerous start-up businesses move in with one unit. Over time we assist them with their business growth, with quite a few having 3-5 driveway units, with 50-120 square metres in total. Eric Conliffe Kennards Self Storage Chatswood NSW

Chullora NSW

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Kennards Kourier October 2017