Flying high in Europe

Leadership

New Zealand companies looking to operate successfully abroad need to value and understand differences in business culture, even in countries that seem similar, says airport CFO Chris Chandler.

“Sometimes there’s a stereotype that English-speaking countries are one and the same, but that’s not the case,” he says.

“There’s so much more to doing business in another culture, whether they speak the same language or not.”

Chandler has experienced that first-hand, having spent the past five years rising through the ranks of Infratil Airports Europe (from project based accountant to CFO) as the New Zealand-owned infrastructure company grew its operations in Scotland, England and Germany.

“It’s more to do with relationship building, where a certain standpoint or view or process would be quite acceptable in New Zealand, but could be the exact opposite ... offensive, in Scotland.”

Infratil has several New Zealanders in senior positions throughout its European operations, which maintain Antipodean-style corporate governance (the CEO reporting to a board of non-executive directors — an adjustment for European managers), but has increasingly brought more and more European talent into its commercial areas.

It’s about getting the right mix to help address cultural differences that exist beneath the veneer of shared language, says Chandler.

“I’m quite patriotic, and I love the fact that I’m still working for a New Zealand company, while getting all the benefits of living in Europe. I’m really proud our shareholders are all mums and dads back home, including my own.”

Over the years he’s largely been based at Glasgow Prestwick, Infratil’s first European airport and a major hub for low-cost carrier Ryanair. His office, adorned with a large New Zealand flag on the wall, gives him a clear overview of the busy operations.

“I have a great view of the runway,” he says.

“The ramps where all the aircraft are parked, Ryanair, cargo planes, Air France and what have you.”

His career grew alongside Infratil’s European expansion; soon after he arrived, he spent four months each at newly acquired airports in Kent (England) and Luebeck (Germany).

He found that interesting, “although the German winter was a bit rough”.

Prior to heading north, Chandler worked at Infratil’s Wellington Airport base — having made the move to ‘inhouse’ accountancy after qualifying at global firm Ernst & Young.

He was originally drawn to a finance career because of a childhood love of numbers. Now what he loves about his wide CFO role is the way it filters through every aspect of the business.

“The best thing about finance, especially in a senior role, is that there’s nothing in a business that doesn’t touch your responsibilities,” he says.

“Pretty much everything either has a cash consequence, or a risk consequence.”

The consequent challenges of such senior finance roles, says Chandler, include helping middle management understand that numbers are not the sole purview of accountants or the finance team.

“The numbers are actually everyone’s ... I’m there to help, and to calculate, and to challenge them — but they’re not my numbers.”

Managers need to realise that even though they may prefer to focus solely on their area’s operational aspects, “they have also got to be part-time finance managers, part-time HR managers, and all those sorts of things”.

“Traditionally the accountant sort of wears the black hat,” he says with a chuckle, before noting finance is primarily a support function, supporting each manager.

“It’s very interesting, and can be very challenging, but it’s also very rewarding — once they realise that what we want is performance and returns to our stakeholders.”

It’s that final word, stakeholders, that is key, says Chandler.

Although businesses rightfully focus on returns to their shareholders, there can also be wider groups that have an important stake in the business.

Airports are a great example of an asset class where relationships with public stakeholders (one of Infratil’s strengths), are extremely important, he says.

“Those sorts of things loop back into your value ... so you’ve got to balance all your stakeholders, and that includes environmental issues, green areas, the local community’s concerns about noise and all that sort of stuff. You’re managing stakeholders, not just shareholders, but the reality is the better you manage all your different stakeholders, the more successful you’ll be for your shareholders.”

- Unlimited