Rebecca Archer
Welcome to Beyond the Numbers with Grant Thornton – a podcast delving into marketplace and business trends.
I’m Rebecca Archer and today I am joined by the Brisbane Office Chair and Tax Partner Sian Sinclair and Risk Consulting Partner Jarrod Lean. Brisbane is on the countdown to hosting the world’s most spectacular sporting event in just 8 years.
As the city gears up for this monumental occasion, what still needs to be done, how should local businesses approach bidding for contracts, and what other crucial steps must Brisbane take to ensure it’s ready for this global event?
Welcome Sian & Jarrod!
Sian Sinclair
Thanks, Rebecca. Great to be here.
Jarrod Lean
Yeah, thanks, Rebecca. Great to be here. Looking forward to the chat.
Rebecca Archer
To start off, I'd love to get your take on the sorts of benefits that a city can gain from hosting the Olympics.
Sian Sinclair
I'll take that, but where do I start? I mean, there are so many opportunities that come out of hosting something as large as the Olympics. Really, it’s, you know, it's not just about that cash hit that you get where you get all the visitation, and you get all full utilisation of your tourism assets during that period of the game.
What I think is really important for Brisbane as a city – a place I call home – is really that it's both the pre and post legacy that comes out of all the activity and all the… it's the bringing forward and the setting deadlines of pieces of infrastructure and parts of places for our community to use sort of going forward well beyond the games.
One of the things I think we need to think about is also, you know, these games we've, we've thought about, it's not about creating everything just for the games. It's about thinking about how the population that's increasing here in Brisbane; we're growing, and how we provide the lifestyle and amenity for all the extra people that are planning to call Brisbane home in decades to come.
Rebecca Archer
And what about the sorts of social benefits? Is it the kind of thing that really binds a community and discovers that real spirit of… let's all get in amongst this and let's all rally towards this common goal of welcoming the world to our doorstep?
Sian Sinclair
Well, I think that civic pride is a really important part of it, and some of the findings out of the Commonwealth Games Report – so that was in 2018 – was really about… there was an uplift in volunteering numbers, there's an uplift in participation in community sports, you know, so there's that real sense of civic pride and just real engagement from the community and that positivity.
Brisbane's already pretty high up there when it comes to other Australian cities on the happiness index. So, you know, I can only imagine what we're going to be like post Olympics, but I think that is a really, you know, that societal impact is really important and that bringing together and that sense of community.
Jarrod Lean
It's been, you know, 20… 23/24 years since the Sydney games, and I'm old enough to remember, you know, when it held here, and people still talk about the buzz and atmosphere that Sydney had during that time and the sense of pride that the community had when the Olympics were on and leading up to it. So, it'll have a significant impact on the Brisbane community, no doubt long after the games.
Rebecca Archer
And of course, when we look at the Sydney Olympics, as you've mentioned there, Jarrod, and the Commonwealth Games held in South-East Queensland on the Gold coast not so long ago, I would imagine that the local suppliers that are operating in the area have an incredible opportunity to really put themselves forward and start maybe even trading on a global stage in a way that they might not have even attempted prior to this event being held.
Sian Sinclair
Well, it creates opportunities for everybody. One of the interesting things around, you know, being an Olympic city is everybody suddenly knows who we are. So, it sort of puts it on the map, and a lot of the benefit that comes out of that is the intangible; it is that familiarity.
You know, people have seen it on their screens, they've realised that it looks like a pretty good lifestyle, and so there's that inducement, potentially to visit here, and the more that that familiarity builds, that really can increase the amount of investment that gets maybe thought about and considered and directed this way, as opposed to in the past, if they weren't aware and they didn't have any sense of what Brisbane meant, they often refer to it as soft power, and so you'll find that cities that have hosted the Olympics – and a number of them that sit highest on that soft power rating globally have hosted more than one games – so, you know, I think it's really a fantastic opportunity to have Brisbane in that list of Olympic cities.
Jarrod Lean
Yeah, and I think, Sian, we've spoken before and I think it was off the Commonwealth Games that from a supply point of view, doing some work as part of that opened them up to global opportunities, which they hadn't really seen before or thought about before. So, they were this domestic supplier, but it created this opportunity which opened up the entire globe to them from their business point of view. So, there's a really great opportunity there for Brisbane and Queensland based suppliers from that angle.
Sian Sinclair
Yeah, there's a great story that came out of the Commonwealth Games – a local manufacturer – and I think they were doing like manhole covers or something, you know, not necessarily high on the exciting list of things to supply, but they, you know, off the back of that contract, they're now supplying nationally and globally. So, you know, it is that opportunity to put their businesses forward and show what they're actually able to deliver and open up huge doors.
Another important part is often with the Commonwealth Games, they certainly…they ran a trade and investment show around the same time. So, I'm hoping that we see something similar in relation to, you know, encouraging… and I know government's taking a lot of steps in helping to, you know, those smaller businesses, helping them to kind of get match fit around being ready to procure and maybe practice by looking at government contracts even before the games.
Rebecca Archer
And when we look at, I guess, the state of Queensland more broadly beyond that southeast corner, which is obviously going to be the direct beneficiary of anything economic from the games at the time, I wonder, will the Brisbane 2032 Olympics sort of align with the broader economic goals of Queensland – and taking a step even further out – Australia as a whole as well?
Sian Sinclair
Well, I think some of the stats there, I mean, I think it's around, you know, $8b+ that's expected to generate in relation to the kind of the South-East Queensland Brisbane region, but the broader impact of the games is meant to be around $17.6b, I think is the number that the authorities currently sort of putting out. I mean, obviously that will, you know, flex as we get closer and obviously measuring it is always a challenge, but that's certainly what they're seeing as projections. So that's a huge uplift for the, you know, the economy of Australia in general.
Rebecca Archer
And what about previous Olympics? Have we got any examples from years gone by where cities that have hosted the Olympic Games have seen a dramatic increase in tourism and just, I guess, visibility more generally?
Sian Sinclair
Well, certainly the Barcelona Olympics, there was a strategy put in place to try and lift tourism there and, you know, that's certainly something that they've seen improvement on as part of their legacy, and no doubt tourism is an important part of the Australian economy, and, you know, whilst we get full utilisation of it during that games period, it is really about building for that growing tourism economy for Australia.
Jarrod Lean
Yeah, and I mean, it goes without saying that Brisbane is already known as a bit of a tourist mecca for Australia. So, I've got no doubt there will be opportunities there to put Brisbane on the global scale and remind everyone of the beautiful beaches, climate and things that we have. So, I think it's a really good platform from that and it's probably more just of a refresh than anything else because, as I said, the Sunshine State is known for that globally already.
Rebecca Archer
We, of course, can't have a discussion about any Olympic Games, really, without addressing the challenges that are associated with hosting such a huge event. Sian, what still needs to be done to prepare for the Olympics in Brisbane in eight years from now?
Sian Sinclair
I think if you asked most people on the street, they'd say a lot, and our ten-year runway is now suddenly very quickly become an eight year runway, and, you know, as we know, infrastructure and larger, you know, there's still a lot of talks around venues.
Thankfully, we now have GVLDR established: the Games Venue Legacy Delivery Authority. That's now been working away in the background and sort of starting to… it's now being taken out of the hands of government and being managed a bit more independently. So still announcements to be made there, but, you know, the headliner is the biggest stadiums, of course, but there's, you know, 50 plus different community sporting venues that will be impacted and supplied, upgraded, etcetera.
So, it's not about all new, big, shiny assets, because – let's face it – in our current economic environment, construction is a really tight space at this time. We've got scarce resources, we've got scarce people with the skills to be able to do all the work that is needed, and that's off the back of what is already a big build that the Queensland Government are pushing through in relation to meeting various infrastructure requirements.
So, you know, the tip of the iceberg is really just the games assets on top of that. So, there is a few challenges around productivity and being able to lift that, and obviously technology will come into that, and then just working out where can we get the skilled resources we need to get the job done?
Rebecca Archer
And so, contracts have, of course, started to be awarded with an estimated $200b in Queensland Government procurement opportunities leading up to 2032, how can businesses prepare to secure contracts for the Brisbane 2032 games?
Jarrod Lean
We've just mentioned then that the ten years has now quickly become eight years. So, I think the more preparation that organisations can do the better, and also just mentioning like the larger scale ones, obviously a lot of those organisations will know the procurement requirements and things, but there's so many different contracts that are going to be provided.
So, thinking about things like if you haven't gone through procurement from government before, it is different to other organisations. So, getting ready to be prepared for that and having information and thinking about where your services could land would be key, and I think also just understanding the different compliance and regulatory requirements that come with such a contract with government and the Olympics in mind from there, and then the final thing, I guess from a capacity point of view, as we mentioned, that there is limited capacity and there is so much, but thinking about how your business could scale up to meet that and also from a local perspective, that there's going to be probably preference or locality being obviously Queensland hosting the Olympics, making sure that contracts are awarded in there, but if you're not based in Queensland, thinking about how you could still service the market from that end.
Sian Sinclair
I would also add to that that there's a number of businesses that if they are thinking about it, they may need to consider things in becoming a supplier for the games that they haven't had to in their everyday business before.
So, things like looking at their modern slavery, the ESG considerations, which they might do, but actually pulling that together as a documented, you know, what is our environmental impact and understanding what are their sustainability goals, what is the social impact and what are they doing around diversity, et cetera, or establishing how do we capture our governance and ensuring…providing comfort to our potential customers, as to that, we have all that kind of under control because it's really them needing to demonstrate that they’re match fit in those areas as well to be considered when they're looking at those government contracts. Absolutely the government has said they will be preferencing Queensland suppliers, but they are still going to need to be able to tick off those other requirements.
Rebecca Archer
When we're talking about procurement, quotes often come to mind, what else should businesses consider for such a large-scale event?
Jarrod Lean
Yeah, I mean, Sian's touched on some of that there, but, you know, price is obviously important, and the government will be looking for value for money, but there's so much more that will be considered and things that probably weren't a number of years ago even on the table, but for things like the Olympics.
So ESG, sustainability, workforce diversity – so we're seeing more of more of that in government contracts, wanting to know how your workforce is, and capacity – so obviously there's a key requirement here that, you know, it is eight years away, but things are going to have to be delivered to tight timeframes and be able to meet that.
So, suppliers are going to need to be able to demonstrate how they will achieve what they've outlined and have the capacity and the flexibility to be agile. So, if things go wrong, how do they respond to that and be able to, again, flex up or down to meet the demands from that end?
So, I think it's much more than just about the price. The price is obviously important, but there's going to have to be pretty strong rules and structures around not only how you got to the price, but more importantly as well, the things behind that, of how you would deliver the services in accordance with that price, but also meeting all the additional requirements that we've spoken of.
Sian Sinclair
One of the things I'd add is that this is the first games where we've actually… they're contractually required to deliver a climate positive games. So, when you're looking at how that's measured suppliers and the impact of your suppliers is a massive part of any of your internal calculations, so they really need to make sure their suppliers and their choosing of those, they need to be able to demonstrate towards that climate positive goal.
Rebecca Archer
And just on that point that you've made there, Sian, I wonder, how might the emphasis on carbon reduction in the Brisbane 2032 Olympics influence future procurement practices in other large-scale events or industries? Or has this already kind of started?
Sian Sinclair
Well, I'd say this is the first one that has been contractually signed up to, so that'll be an interesting learning curve for those who have committed to that, but you can't think that you would commit and try and instill these practices into an event like this without taking that into our everyday events or everyday just running of our community.
One would hope the learnings that come from this can spread far and wide, and you would think that, you know, not only the learnings that come from the Brisbane games will be shared in future games because noting that they're going to be signing up on similar terms going forward.
Jarrod Lean
Yeah, and I'll just add with that lots of organisations will be doing a lot of things to reduce their carbon. It's about documenting it and being able to outline that in the procurement process of how you are doing it because, you know, with government procurement, there will be lots of documentation and it won't just be conversations, you're going to have to demonstrate it. So just talking to it, you're going to have to evidence and validate it to really substantiate, to confirm that you will be meeting those targets.
Rebecca Archer
In terms of the procurement process for the 2032 Brisbane Olympic Games, how would it be different to a perhaps standard procurement for a private sector organisation, let's say?
Jarrod Lean
Yeah, I mean, we do a fair bit of work with government and the biggest difference we see is that just the amount of different decision makers and touch points in the procurement process. There's definitely stats around it, but it not one person.
So, it's not just the procurement team, there'll be a number of buyers from that. So really understanding the audience, knowing, again, what we've spoken about, it's not just about price. You're going to have to talk about all of those other things because there's a really good chance that the..your proposal or quote will be pulled apart and sent across all different organisations and reviewed and assessed from that angle. So, thinking about that.
And the other area is obviously from a governance point of view, just making sure from a conflict point of view that you've gone through that, you're not conflicted out there is the risk, or I'm sure government aren't going to want any scandals, so making sure that they're squeaky clean from that procurement process. So, that just means that there are a few more hoops that you need to jump and make sure that you've gone through and your proposal is really well shaped, but it's really safe and secure as well.
Rebecca Archer
So, this is sounding to me like a lot of work potentially for maybe the smaller scale suppliers who are considering maybe expanding in the years ahead to be able to be considered to secure a contract for the 2032 Olympics in Brisbane.
Where should a smaller sized or medium sized business that hasn't really had to think about these things before, where can they start in terms of getting some help or being able to have information at their fingertips that could be really useful to them?
Jarrod Lean
Yeah, it's a good point. It does sound like a lot, and it is for some, but I think it's also just prioritising what is the areas, and as I said, a lot of the organisations will be doing things that are meeting this. They may not just have the documents in place.
So, putting that effort into start building that now so you're able to respond to these procurement opportunities will just help you move forward, because once you've got it in place, then you can tailor it and respond to it more as you need, but it's not going to go away.
So even without the Olympics, this is going to be a procurement requirement ongoing. So, I think there's, you know, much value and benefit in starting to prepare in these areas now, even if it's not for the Olympic Games, just for ongoing procurement moving forward.
Sian Sinclair
I think you'll also see the Queensland Government has been putting out a lot of assistance on their current procurement website. There's a lot of information and they're planning various training courses and assistance with, you know, getting businesses ready. So, it does, as you say, it does sound like a lot of work, but I know there's help available.
Rebecca Archer
And let's move on to the issue of technology. What role does technology play in managing procurement for such a large-scale event?
Jarrod Lean
I think just with technology in general, as with everything, it's key for not only procurement, but moving forward.
So, for such a large-scale event, it's going to be really important that suppliers are able to outline how they're embracing technology and using it to find those efficiencies and innovative ways to deliver things. So that might be really simple areas, but it might also be some really advanced areas for such large-scale pieces from that.
So again, I think it's just been proactive in understanding what technology is going to be out there, how that's going to help you deliver the services, and again, being able to demonstrate it. So, lots of organisations will already be doing this, but again, with large scale and government contracts, you're really going to have to outline how you've done it before or what's coming and provide how you will leverage technology to help you deliver those services in a more efficient and practical manner, which won't impact the quality of the services being provided.
Sian Sinclair
I think there's also a bit of embracing the crazy ideas also at this point. If we think back eight years ago and some of the technologies we are using in our everyday life now that didn't exist. So, what does technology look like in eight years’ time?
And, you know, sitting in on some conversations around it, they're talking about virtual tickets to events and, you know, not being there, but being able to project it into your lounge room at home. So, there's, you know, we've really got to broaden our thinking as to… and let some of those crazy ideas come out because that might well be the norm in eight years’ time when we're actually hosting.
Jarrod Lean
I think also one of the key areas that you're going to have to prove that you are secure, you know, information stored, locked down. You can't be, you know, hacked, or if you can, you've got everything in place to prevent that from happening. So, I think whilst technology is great, it does come with, I guess, those risks that you're going to have to outline what you're doing there to make sure that you're using it in the most safe manner as you can.
Rebecca Archer
Yeah. So cyber security being a big issue for businesses. I wonder also looking at how quickly things like AI and the technology associated with that develops and being able to maybe harness that to make cost savings in certain areas and have efficiencies in ways that weren't even able to be considered in games of times past.
Jarrod Lean
And I think you're exactly right in terms of – and we're still talking eight years away – so as Sian has mentioned, that the world will be different, but being able to demonstrate that you are staying on top of the leading edge practices, or at least considering it.
So, you know, you need to be agile, that if something does come out that is beneficial, you're willing to jump on and use it, as long as, again, it's meeting that criteria from a risk point of view that it is secure, safe and things like that because, as I said, whatever you sign up to now, in eight years’ time, the world will be a little bit different and I'm sure we haven't thought about everything.
Rebecca Archer
Just one quick question again around cyber security. So, I would imagine that businesses need to be aware of the fact that the world knows that Brisbane is going to be the host of the 2032 games. Does that then paint a bit of a target on organisations, organisations that are operating in that area?
Jarrod Lean
Yeah, I think it's a good point and obviously with all the pros, there's some cons. So, Brisbane will have the spotlight and Australia and obviously knowing that there'll be a lot of activity, a lot of funds being spent, personal information going around.
So I think, you know, not just suppliers, but organisations in general will need to make sure that, you know, cyber security is top of mind, it has been for a number of years, but not losing sight of that and again, doing everything you can to make sure that your systems are safe, secure if something does go wrong, that you've got really strong systems in place to respond to it and go from there.
But I think it's a really valid point that whilst it's really positive, all the opportunities that will come out of it, it will shine a bit of a spotlight down on Brisbane and all of the organisations in there.
Rebecca Archer
And I suppose, if anything, just makes businesses… gives them the impetus, I guess, to be ready and to make sure that all of their security is up to scratch and in place.
Jarrod Lean
It will definitely be a question asked during the procurement process. So again, making sure that you've lined all that up and have the responses in place, and more importantly, that it's not just the responses, but you're following through on the things that you're saying you've got in place and doing.
Sian Sinclair
I guess one of the positives that came out of the Commonwealth Games Report was that one of the, I guess, legacy items was that it was an opportunity and they saw a lot of improved processes for businesses that were involved in that event. So, hopefully they're getting ready for that in the lead up, too, and so that the ultimate protection post games as well.
Rebecca Archer
And finally, I'd love to hear from you both about what excites you most about hosting the Olympics in Australia and for Sian, who is based in Brisbane, in your hometown?
Sian Sinclair
Well, that's right. As a proud Brisbaneite, just seeing, I think, our community come together and the civic pride around that, I mean, we all had an amazing watching the Olympics in Paris and just thinking, oh, my goodness, that will be us one day.
So, you know, and it's the opportunity that it presents for our kids, for our entire region, and, you know, wouldn't it be great to see some homegrown success and gold delivered out of Brisbane in 2032?
Jarrod Lean
Yeah, I mean, building on that, who doesn't get excited about the Olympics? So being in our own backyard, I'm sure it's going to be great.
I agree with all of Sian's points from, you know, hoping to see the positives, and from a business sense, I think there's just so much opportunity for organisations, whether it's, you know, small or large, in terms of there's going to be so many additional services being required, whether it's in the lead up to the games or throughout the games and even after the game.
So, the benefit that it can have to small businesses, to medium to large is significant. So, I can only see positives in it, and I really can't wait, and I'm sure the eight years is going to come around really quickly. As I said, I can't believe it's been 24 years since the Sydney games.
Rebecca Archer
Sian and Jarrod, thank you so much for taking the time to be part of this episode. For those people listening who might want to connect and delve deeper into the work that you do or explore potential ways that you might even be able to assist them, especially in the lead up to the Brisbane 2032 Olympic Games, what's the best way for them to reach out to you?
Sian Sinclair
Well, you can find us on the website. Happy to have conversations, and certainly whether it's a local Brisbane business or you're a business that's looking to source opportunities for the Brisbane Olympics, then I think we've got various offices so you can find us on the website and happy to have a chat.
Jarrod Lean
Yeah, and thanks Sian, and obviously, other than our website, all of us will be on LinkedIn on our profile, so feel free to have a look at that from myself, Jarrod Lean and Sian Sinclair on there. You'll be able to go to that and see our direct inbox and email us if there's anything you need.
Rebecca Archer
If you liked this podcast and would like to hear more, you can find and subscribe to Grant Thornton Australia on Apple Podcasts or Spotify. Leave us a review or ideas on who you'd like to hear from next. Thank you for listening.
