When Process Trumps People.

There’s a special kind of regret that comes only after you’ve made a parenting call that would make your own mother shake her head. Picture this: a holiday, a bit of nostalgia, and a couple of shiny metal cap guns for the kids (because, of course, the best souvenirs are the ones that last). I thought I was passing on a piece of my childhood, a relic from a time when the world felt a little less complicated.

But the world has changed. Fast forward to the airport security line, and suddenly, my good intentions are on trial. My kids, eyes wide with adventure, tried to sneak their new treasures onto an international flight. Cue the internal monologue: “What kind of stupid am I on?” There I was, ignoring every warning sign – literally – posted at the checkpoint. The error was caught in time, but not before a parade of protocol marched in: officers with guns and tazers, kids in tears, my wife’s ‘angry face’, and I started wondering if we’d end up on reality TV sandwiched between a guy smuggling chicken feet from Vietnam and grandma with a suitcase of cheese.

The lesson? When people follow process, context doesn’t matter. The rules are the rules. No discretion. No exceptions. No personal touch. The machine grinds on, and you’re just another cog caught in the gears.

Maybe you’ve been there?

  • The dreaded phone call from school about something your kid did.

  • The application process that requires one more form after another.

  • The work performance review that reads like it was written for someone else.

In the pursuit of targets and “best practice,” nuance is the first get shot in the crossfire. Algorithms take priority over humanity.

The Reserve Bank of New Zealand and The Cost of Process

Last week, the Reserve Bank of New Zealand (RBNZ) delivered its latest OCR announcement. No change.

Really? There’s more funk in our economy’s trunk than my kids suitcase going through airport security. For almost two years now we’ve been in recession. Businesses failing, redundancies stacking up – pain that just won’t quit. You can trace it all back to second half of 2020. Some say the RBNZ were totally justified. I disagree. Perhaps dropping the OCR to 0.25% was okay for a few months, but they left it at this level for 18 months! Inflation hit asset prices first, then consumer prices next. It was an error. They should have considered local conditions, but instead, they chose a script other central banks used in economies very different to New Zealand.

Now stubbornly stuck at 3.25%, the RBNZ locks in, yet again, to a form of imported monetary policy rather than acknowledge where things are at locally.  The US (Central Bank)Federal Reserve, armed with solid employment figures, is arguably more able to endure a higher for longer stance on interest rates, but not New Zealand. Businesses have absorbed costs just to keep the lights on. It’s a survival tactic, but not a strategy to stay in business in the medium term.

Insolvencies are up 31% in 2025, and almost 9 companies per day have been placed in liquidation in the month of June alone.

But the RBNZ? They’re following process. No room for the messy reality on the ground. No ear for the stories behind the statistics. Just the playbook, page by page.

And The Everyday Person?

What can we do when we’re caught in the gears? I think back to my airport moment. I accepted the situation, set expectations, and tried [I struggled!] to keep it civil. Sometimes, that’s all we can do: Own the mistake (even if not yours), stay human (although you’re stuck in a machine), and ride out the process (this too shall pass).

It’s hard identifying problems, without shining too much light on the negative. Let me be super clear though –  I don’t like how central banks, unelected and insulated, have so much sway over our lives. Through monetary policy, they decide how fast our costs rise and how quickly our wealth can grow. Most people don’t even know where the pain comes from. They feel the solution is political, but it’s not.

Last week, in my view, the RBNZ made a policy error, similar to the mistake they made in 2020, just in reverse. They should be cutting rates further, and faster. Even a small drop would have been a lifeline – a shot of hope for Kiwis just trying to hang on. While I’m not holding my breath they’ll start doing what they should do, if history is any guide, the cure for a deep recession (which we’re on track for in my view) is always the same: deep interest rate cuts. We all know that playbook. That’s the happy place.

The Takeaway?

First home buyers: I have to keep saying it while it’s still true – NOW IS THE TIME TO GET INTO THE MARKET.

Property investors: Hang on longer than anyone else, and you WILL see better times.

Hope comes not from the process, but from knowing how the game is played, and being ready for the moment when the rules finally change.

If you want to formulate your own strategy to survive, or thrive off the latest RBNZ policy error, reach out for a free 15-min phone call.