Welcome to the first issue of Six Degrees Connected for 2010 - our quarterly e-newsletter, which forms part of our highly successful Thought Leadership Program.

While the past 18 months have been tough for the recruitment industry, 2010 is shaping up to be much more positive.

In this issue, we talk to five key industry decision-makers about how they handled the challenges of the past 18 months, what lessons they have learnt, and what their outlook is for 2010.

Peter Brydon, Human Resources Director at Kraft Foods Ltd and Conor O'Malley, former Group Executive of Corporate Services and Logistics at National Foods Limited discuss challenges and opportunities facing the FMCG food industry, while Pat Freeland-Small, Executive Director of Marketing and Communications at the University of Melbourne looks at specific issues facing the education sector. We also talk with Josie Holdstock, Director of Human Resources at PZ Cussons Australia Pty Ltd about challenges and future growth prospects for some of Australia's leading brands, while Meagan Reay, Marketing Director at Mattel shares her thoughts on how the toy giant navigated its way through the downturn and issues they will be facing in the year ahead.

The good news is, we have seen an upswing in the economy from the last half of 2009, and this positive trend is continuing. Our clients, particularly in the FMCG, consumer goods and manufacturing sectors are experiencing growth, and many large scale projects will be moving forward in the next 12 months.

The skills shortage will be the big issue for 2010, and as optimism about the economy continues to rise and candidates start exploring new horizons, companies will be challenged to develop more aggressive and more targeted strategies in order to retain exceptional staff and tap into the passive candidate market.

In the last three years there has been a big shift towards alternative sourcing strategies, with high level networking, referral programs and the use of social media playing a much bigger role. With approximately 80% of the candidate market made up of passive candidates, and with only a small proportion of this made up of ‘blue chip' candidates, innovative programs, or a business model to source this quality talent will be paramount to organisations' success.

As the economy has shifted up a gear, we are also starting to see more movement in senior and director level roles, in a variety of disciplines from marketing and sales to supply chain. Top candidates who bunkered down during the downturn are now more open to hearing about opportunities. The ‘time to fill roles' ratio is also reducing (compared with six months ago) as clients recognise the importance of securing talent quickly in today's competitive market.

Another challenge for organisations this year will be in managing the negative feelings that have been generated by past staff cuts. Organisations are already responding by looking at new and creative strategies to keep staff, not to mention having to review salaries which are likely to increase significantly in 2010.

So what will be the keys to success in 2010? Certainly success this year will be determined by organisations' ability to cut costs while simultaneously increasing talent, productivity and the bottom line, but companies will also have to think more creatively about a variety of issues, from how to retain top talent to how to foster leadership development.

In 2010 our Thought Leadership Breakfasts will continue to be a great forum for leaders to brainstorm and network. In Sydney in February we had Damian Borchok, Managing Director of Interbrand Australia, a leading international brand consultancy, discussing brand differentiation in today's competitive retail environment, and in March, Kepner Tregoe and Human Synergisitcs will lead a discussion on achieving manufacturing excellence by focusing on culture and driving the right behaviours in manufacturing teams. More breakfasts will be held throughout the year including the Portland Group who will be speaking on how to drive supply chain improvements.

We hope you find this issue of Six Degrees Connected enlightening and inspiring. If you have any story ideas or would like to contribute an article yourself, please contact Kim Richards at: kimr@sixdegreesexecutive.com.au.

1. 2009 was a tough year for most. What were the key business changes you made to adapt to the economic climate?
The economic climate, in my view, favoured FMCG food over many sectors but this didn't stop us making changes and refinements at Kraft Foods ANZ. Last year, we focussed on doing fewer, bigger initiatives and also 'spoke to' our customers to highlight the underlying value of our products.

2. What is your outlook for 2010 and beyond?
Very positive. Whilst some commodity prices are on the increase we believe we have the talent in our organisation and the commitment to meet commercial challenges and brainstorm solutions. We have changed our culture from 'committed to the process' to 'committed to the results'. In late 2009 we moved to a modern, environmentally-friendly head office in South Wharf - a move that has further enhanced our progressive, can-do culture.

3. What are the greatest challenges facing your specific industry/disciplines?
Innovation in a mature market. We have so many varied opportunities to grow, which poses the question: How do we select and drive the right ones? Other challenges include greater business discipline with a fully embedded Integrated Business Management system.

4. What are the key skills and attitudes you will be looking for in candidates in 2010?
Commercial drive, a flexible approach, innovation, courage, and a willingness to take risks.

5. What are your hiring intentions for the year ahead?
Hire ahead of the wave, as we have in 2009. Be proactive in the market - secure great people then find creative ways to engage them in the business. Retain our past employee alumni and leverage their networks.

1. 2009 was a tough year for most. What are the key business changes you have made to adapt to the economic climate?
We have been, and continue to be, focussed on reducing waste and 'noise' in our business. This means constantly looking for better and smarter ways of working. Over the past 12 months we have done such things as develop more efficient processes, establish better communication, and create effective cost structures.

2. What is your outlook for 2010 and beyond?
We have a very positive outlook, with good sustainable growth projected for the next five years. We believe the overall economy is improving and with our very strong plans for our brands, our ongoing focus on strengthening the relationship with our customers, as well as our improved ways of working within the business, we are well placed for a successful year ahead and beyond.

3. What are the greatest challenges facing your specific industry/disciplines?
We operate in a very competitive environment where our consumers and customers are more and more demanding. The categories in which we operate have a high level of competitive activity and our employees have high expectations of the company to provide a great place to work. For our ongoing success, we need to have a very strong innovation platform for our products and how we run our business overall.

4. What are the key skills and attitudes you will be looking for in candidates in 2010?
Our company values are Courage, Accountability, Networking, Drive and Oneness (CANDO!) and we go to great lengths to make sure that new people joining the business are aligned to the company's values. This helps ensure a good fit both for the individual and the business. We are always on the lookout for commercially focussed people who have proven strong personal leadership skills and a real desire to make a difference.

5. What are your hiring intentions for the year ahead?
In 2010 we will be embedding the new structures we developed in late 2009. Having found a good mix of new talent blended with longer-serving, experienced talent in our business, our efforts during the coming year will be centred on further development of our current team.

1. 2009 was a tough year for most. What are the key business changes you have made to adapt to the economic climate?
By focussing on their customers, businesses were able to weather the economic storm and reach the targets they set for themselves in 2009. The key strategic changes I led last year at National Foods were the continuation of our cultural safety and sales and operational planning journeys, the integration of the Dairy Farmers' business, and the negotiation and subsequent implementation of the Linfox 10 year contract.

2. What is your outlook for 2010 and beyond?
2010 is already shaping up to be a year of recovery, and companies are keen to ensure their key talent is retained. Beyond 2010, I believe that if companies continue to innovate and focus on their customers, their cash flows will continue to prosper.

3. What are the greatest challenges facing your specific industry/disciplines?
The key challenges facing the supply chain are the continued evolution of consumer requirements, the ability of companies to invest in their physical and IT infrastructure (given the restraints on lending), working with key trading partners in a commercially collaborative approach, and getting the best people to achieve the results needed to deliver shareholder value.

4. What are the key skills and attitudes you will be looking for in candidates in 2010?
The right fit. Not all companies and roles are the same, so it is critical that both the company and the candidate evaluate each other in terms of their requirements. I always look for somebody who is capable of doing the job, has researched the organisation and who matches their skills and experience to the values and culture of the organisation.

5. How do you recruit and retain talent?
When recruiting you should always ensure the position is well thought out and will genuinely add value to your organisation, as well as being of long-term interest for the candidate. It is also important to have a great induction procedure so the candidate gets a good first impression of your organisation.

1. 2009 was a tough year for most. What are the key business changes you have made to adapt to the economic climate?
The education sector was not immune from the pressures of the GFC and 2009 was characterised by the need to trim costs and overheads. The University of Melbourne introduced several reforms to enhance business efficiency. Budgets have been made to work harder and unnecessary costs have been cut.

2. What is your outlook for 2010 and beyond?
We are looking forward to reaping the benefits of the structural and operational reforms we undertook last year. 2009 forced us to re-evaluate the way we approach many of our business activities, which has led to a thorough cleanout.

The Federal Government has announced reforms to the education and research budgets, which will provide more funding for the university sector from 2011. The sector will also benefit from the significant capital projects injection, which has significantly upgraded the quality of university and research infrastructure. The University of Melbourne currently has close to $1 billion in capital works projects underway.

3. What are the greatest challenges facing your specific industry/disciplines?
Our greatest challenge is funding the cost of education and research. The strengthening Australian dollar, bad press about the safety of international students and growing competition by other markets for the education and research dollar are our greatest challenges. Ensuring Australia remains an attractive and competitive destination for high quality students, academics and researchers is fundamental to the success of the sector.

4. What are the key skills and attitudes you will be looking for in candidates in 2010?
An ability to understand people and a broad knowledge of different cultures, combined with demonstrable skills in the relevant professional discipline. Increasingly I'm looking for candidates who also have skills in utilising technology to enable better communication and more efficient work processes.

5. What are your hiring intentions for the year ahead?
Over the next 12 months we are likely to be seeking talented marketing staff to assist in opening up some new and profitable business ventures. We will also be looking for talented communications staff in both our new and traditional media spaces. Additionally there will continue to be the usual staff turnover, which I believe is part of a healthy work culture.

1. 2009 was a tough year for most. What are the key business changes you have made to adapt to the economic climate?
Externally, we re-examined our portfolio for non-traditional sales and marketing opportunities. Whether it was new product, new segments, new distribution - staying relevant in the climate was key.
Internally, it was all about doing more with less. Keeping the team passionate and motivated was a big part of this. It became really important to celebrate the small wins.

2. What is your outlook for 2010 and beyond?
I don't want to believe that we are out of the woods yet. The last 12 months has served us well, in the sense that we are now focusing on the things that matter. It has increased our discipline when it comes to spending and the value of smart investments. Tracking and acting on campaign effectiveness analysis has become a discipline right throughout our business.
With reduced stimulus spending, major changes in the Australian retail landscape and personal debt remaining at precarious levels, we still have an unpredictable climate.

3. What are the greatest challenges facing your specific industry/disciplines?

• Staying at the cutting edge of what consumers want, where they want to learn about you, and how they want to converse with you.
• Navigating social media and managing media fragmentation and the impact on all things from cost efficiency to media effectiveness.
• Managing perceived value in the trade. Delivering great innovation at the right price points.

4. What are the key skills and attitudes you will be looking for in candidates in 2010?
Whenever I recruit, I am all about attitude. I see a number of similar CVs with strong but similar skill sets. It comes down to not what you have done or can do, but how you go about doing it.

• Are they able to contribute to the success of the broader team?
• Will they be strong when in the tough conversations?
• Are they capable of motivating others to follow their vision?
• Do they understand how to read an audience and sell accordingly?
• Can they make lemonade out of lemons?

5. What are your hiring intentions for the year ahead?
We are hopeful for a stable year having put a lot of effort into getting the right people into the right roles. We will continue to nurture and coach the current team to be their best, promoting internally whenever possible. Any recruiting that we do in 2010 should add value and will come as a consequence of strong growth.