DCM Group held its LEADERS SUMMIT Masterclass: Strategy and Marketing at Sofitel Sydney Darling Harbour on Tuesday 29 August. Over 200 delegates attended live and via videolink.
Australian Dr Peter Wilton, who leads the Marketing Strategy in the Digital Age Program in the UC Berkeley MBA program, rated in the Top 10 MBA courses internationally, shared his insights into innovation and disruption.
“What I would really love to think about this morning is how might we get disrupted as an industry and what might that might mean for us,” he said.
“Do we want to wait for that to happen or do we want to be proactive about it and create some of that disruption ourselves?”
He said disruption occurs when an organisation serves a previously overlooked or underserved need. He provided a proven framework for retirement living and aged care sectors to innovate.
One Fell Swoop Managing Partner, Christopher Rooke, said Peter’s presentation was the key takeaway of the day.
“It’s a dynamic market,” Christopher said, “and by doing things the way they’ve always been done runs the risk that we’ll become irrelevant to our customer. Aggressive transition from old to new is the key."
9Spring Director, Michael Radovnikovic, enjoyed “the forward-thinking theme... change or die”, and discussions about planning for change.
“While most of our client work focuses on planning for current market customers, there’s a growing need to address future markets and ensure product longevity,” he observed.
Jeremy Nicoll, CEO of New Zealand’s Arvida Group, explained the company’s strategy with its new private suites, and expressed concern that a two-tier aged care system is emerging across the ditch. He said this is a cautionary message for Australia as we develop new funding models here.
Jeremy said Arvida’s Wellbeing Centre in Christchurch was established to combat loneliness in the community, and has achieved successes with its café, pool, rideshare, and gym.
Attendee VMCH Retirement Living Manager, Liz Hickey, said the MASTERCLASS “was both intensive and thought provoking". “One of the highlights was hearing Jeremy from Arvida talk so openly and honestly about the importance they put on creating communities that engage with the wider neighbourhood.”
Charles Northcote, CEO of Affordable and Specialist Disability Accommodation provider BlueCHP, shared his insights into building homes for people with special needs.
With demand for Specialist Disability Accommodation (SDA) far exceeding supply there is huge opportunity in this market, he says. The key is to work with the client and their family to ensure you are meeting their needs. The work is complex, Charles cautioned and high-level skills are required.
Karen Armstrong, Director Ethos Urban, explained what gets New South Wales aged care and retirement living projects development approval – and shared tips on how to get your project across the line.
Since November 2021, there have only been 21 State Specific Development proposals for aged care and retirement living (12 ILU/RAC, 6 RAC, 3 mixed use) lodged in NSW. None have been completed.
"There's obviously a need to ramp that up," she said.
To get projects across the line, Karen recommends:
- engaging with planners early
- allowing for realistic time frames
- knowing who your supporters/objectors are, and
- telling a visually compelling story.
Luke Mackintosh, Strategy and Transaction, Real Estate Advisory Services Partner, EY Oceania, told the Masterclass that 80% of investment in Australian Build to Rent is foreign equity, mostly from the UK and Europe. There is about $10 billion worth of equity being sought in Build to Rent in Australia at the moment, he said.
Odyssey Lifestyle Care Communities’ Business Development Manager, Rebecca Moraitis, provided an outline of the provider’s private aged care model, which operates under the Retirement Village Act where residents pay a fee for care. Odyssey is fielding up to 50 enquiries every month. (See more about Odyssey in our SATURDAY edition 60.)
Shannon Thompson, General Manager of Calvary Health Care’s innovative new health precinct in Melbourne, Calvary Kooyong, said the Precinct is now two thirds full, delivering the group diversified income streams.
DCM Group Chief Executive Officer Chris Baynes opened the Masterclass with the warning that Australia is heading for “two train wrecks”: the rising cost of health and aged care, and the declining number of aged care beds being built. He concluded with a call to innovate to improve care, and move away from thinking about retirement living and aged care as simply a “property play”.
And here’s some food for thought:
Some key questions were raised over the course of the day:
- What innovations are you developing in your aged care business model?
- Are you regularly asking customers how you can improve?
- Are you considering alternative income streams for your business?
- How do you address loneliness and building community among your residents?
- What can you do better to get your aged care and retirement living projects approved?
- Would Build to Rent fit into your product mix?
- Why aren't more Not For Profit social and affordable housing providers building more SDA?
Thank you to all our speakers and to all those who attended Masterclass and helped make it such a great day.
All attendees will gain access to the videos and content. Check your inbox for details. If you couldn’t attend this year and would like to know more about this content, please contact us.
Over the coming weeks, we’ll share more insights from the event.
We would love to hear your feedback so we can ensure Masterclass continues to deliver the most relevant insights every year.
If you attended live, please complete the short survey here. And if you were a virtual attendee please use this survey.
The SOURCE: Do you follow us on LinkedIn? Join in the Masterclass conversation on the DCM Group page.
Our next event is VILLAGE SUMMIT 2023 in November.
