NEW RQ CEO OUTLINES HIS BUSINESS PHILOSOPHY

By HRO | Tuesday, September 6, 2016

Dr Eliot Forbes, the newly appointed CEO for Racing Queensland, addressed a meeting of the Australian Trainer’s Association at Eagle Farm yesterday. Forbes outlined his credentials, put forward precise views and explained his business philosophy ... all of which will have a major influence on the direction RQ will take moving forward. As such, the following transcript of his talk should be considered important reading for all racing stakeholders.

By way of background I grew up in Queensland, studied veterinary science at UQ and spent the first ten years of my life in veterinary clinical practice.

I initially worked in Adelaide and then overseas in England, Qatar, Macau and the Emirates.

As a racetrack vet, I worked closely with trainers and I developed an understanding of the challenges and some of the frustrations that exist in their world.

I also worked as a race day official and then over the next ten years I moved into full time veterinary regulation, that’s when I was appointed as the first full time veterinary steward for the Dubai Racing Club and the Emirates Racing Authority.

In Dubai I was involved in many fantastic projects including the 2007 Asian Racing Conference and the building and opening of the Meydan racecourse.

I also had the opportunity to represent the Emirates on a number of international racing bodies including the International Federation of Horseracing Authorities and the Executive Council of the Asian Racing Federation.

After we opened Meydan in 2010, my family was keen to move closer to home and I accepted a position as the Chief Operating Officer for the newly formed Tasracing.
After two years I was appointed CEO there, a role I held for four years.

When I joined Tasracing, it had some very significant issues including an unsustainable business model, aging infrastructure and the organisation had a very poor reputation with its industry stakeholders.

Through a combination of careful cost cutting and revenue growth ... driven by wagering growth of 30% over three years ... I’m proud to reflect on the fact that Tasracing now has got a sustainable business model, an innovative world-first, GPS sectional timing system, live streaming of all its races from every code on its website and is Australia’s biggest exporter of thoroughbred racing to the market in France.

These achievements were all delivered through the application of sound business principles, a disciplined financial focus and by having a very ambitious commercial outlook.

Importantly, we improved the company’s reputation and rebuilt industry confidence by ensuring that we listened to industry concerns and worked very closely with our stakeholders to find solutions to our challenges.

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The industry in Queensland is obviously of a vastly different size and scope.

I also know that it has had some significant ups and downs.

I have no doubt that many across the industry are ... and probably will continue to be ... sceptical until they start seeing tangible results from the new racing administrative structure we have now.

After working in a split integrity model for the last six years, I can tell you that it is a model which allows for a determined focus on the commercial aspects of the business of racing.

When RQ can begin to deliver commercial success, that is when we can accelerate and improve industry returns.

Racing authorities have traditionally been governance organisations, focussed on creating and policing the rules of racing.

Historically, there was always a high degree of reliance on third parties suppliers such as U-Bet and Sky Racing for the commercial aspects of racing.

In a competitive landscape though, there is no one more motivated to promote your racing than stakeholders.

Changing from a governance organisation to a commercial one, one that takes full responsibility and is fully accountable for its commercial performance, requires a whole new set of skills, a whole new set of capabilities and a whole new mindset within RQ.

This is the challenge for RQ in the new model, but it also represents a tremendous opportunity.

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Over the last few weeks many have wished me luck in my new role and reminded me of the scale of the task ahead.

RQ’s financial results will be announced in the near future and the company continues to face financial pressure.

I understand that there is a long list of infrastructure needs right around the state and across the three codes.

I am also very well aware of the Tracking To Stability process that people have had to endure and the impact that would have had on everybody.

I am hugely sympathetic to those who have had to endure a stakes cut. The effect that has on industry confidence is, I think, one of the most wide ranging issues we have to manage.

I believe that confidence is the most important currency in the racing industry. Without confidence, who will decide to breed a mare, buy that yearling or put a horse in training?

Without confidence, who will take out a new stable rental, build those much-needed set of yards or upgrade the old horse truck?

Without confidence in those making decisions at the top level, what future do we have?

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I am determined to provide you and the industry at large, with the confidence to move forward.

I can’t speak in any great detail about your specific items today because I have only been in the job for fourteen days and I still need to get my head across all issues ... but I will listen and I can outline my approach.

Over the last two weeks I have been working to very quickly get up to speed with key issues and try to prioritise those within my mind.

I have reached out and begun to establish critical external relationships with government, industry and commercial partners.

Fortunately, I already have strong relationships with most national players.

I am in the process of passing a very critical eye across the structure and capability level of RQ.

It is important that RQ’s structure is designed to deliver value and that it can do so in a very clear and transparent way.

I will be looking to fast track the organisation’s commercial and digital capability.

The good news is that there is significant scope to expand and enhance our digital presence and this remains one of our greatest commercial opportunities.

Crystallising RQ’s strategic direction and building a vision to deliver returns to the industry will an urgent task.

As will the formulation of our asset strategy.

I appreciate that there have been many promises over the years in relation to infrastructure.

It is important that I get my head around that history.

But I am focussed on the future.

It is likely that I can’t fix every broken promise but I am determined that the decisions this administration will take from this day forward will always be responsible and well-reasoned.

We won’t be able to fulfil everyone’s wish list, but the allocation of the resources we do have will be on sensible and commercially sound projects.

We will shorty begin work on an infrastructure plan - one that will take into account historical aspects, our current needs, all with a very firm eye on the future with where we need to be going with infrastructure right across the state.

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Finally, I wish to ask of you two things.

There is a tremendous backlog of issues for me to try and get around. A lot of these have been put on hold for months pending my arrival.

I am rapidly closing out many legacy issues and at the same time I am fast-tracking a number of initiatives to get critical things moving.

I have been here 14 days ... I ask for your patience for just a little while longer, while I refocus RQ on the commercial task at hand.

The second request is for your cooperation.

An old horseman told me once that you can’t learn anything with your mouth open.

I need to learn and I need you listen to you and for you to share your knowledge and insight with me.

Neither I, nor RQ, has got the monopoly on ideas and to succeed in this new commercial landscape, we are going to need to work together.

I know that I need to listen carefully because stakeholders are the hub in the centre of our industry, who have the financial risk and exposure and who you are reliant upon the effectiveness of RQ’s performance.

That is how I have always approached things throughout my career as a clinician, a regulator and an executive.

I do forward to working with everybody so we can take RQ forward and drive this industry to fulfil its potential.

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*HRO comment: There is no soft landing for Forbes. The challenges RQ faces are both significant and urgent, not least the divisions within the industry itself where a ‘them versus us’ sentiment currently prevails to the detriment of all. As much as RQ needs to improve its core culture and raise its level of managerial performance, it is equally important at this time for stakeholders not to judge Forbes on the performance of his processors and at least give him the presumption of a ‘fair go’ in his own right.

He has asked for patience and cooperation. Patience might, understandable, be in short supply in some quarters but cooperation should be an accepted responsibility of all who want to see the industry in Queensland on the rise.