Yesterday I attended the Institute of Directors Annual Conference. This is always an interesting affair and attracts speakers of the very highest quality. Reflecting on the day I wondered what delegates thought about the conference and what they will change when they get back to running their companies.
As is to be expected, the speakers provided a wide variety of views and opinions and some were of course contradictory! When I attend any conference the major selling point for me is "will I learn one thing that I can implement to improve my business"? If the answer is "yes" it is a success, if not then perhaps it was not worth it. Sometimes the learning points come via networking and casual contacts others through some inspiring or thought provoking comments made by a keynote speaker.
I have learned that it is unlikely that I will gain insight from a politician of any colour as they are all scared of making a definitive statement - a sad albeit understandable reflection. You can be entertained and informed by these individuals but will it change what you do? Not in my experience. The best speakers are usually those with less to lose in terms of career prospects etc and hence for me the highlight was Tim Smit the founder of the Eden Project. He articulated many of my values and was a resounding champion for ethical capitalism. It is not all about maximising profit but optimising profit and taking a wider view of impact on local areas. This is true sustainability. Those organisations that show scant regard for their customers or employees have a limited life - when it comes to the crunch they will be the hardest hit.
I noted three points which I think are good lessons for anyone in business:
1. Optimise profit not maximise profit
2. Do not shy away from the hard decisions
3. Stay away from the negative people - wherever they may be found
Nothing earth shattering but points that are all too often forgotten in the day to day operation of a business. Follow this guidance and you will most likely run a good operation.
There was a mood of underlying determination in the audience to prosper despite the mess that we are in through no fault of our own. I still maintain that this is an excellent time to start or grow your business and this view is shared with many commentators at the conference. I just wish that our political rulers could follow the guidance above and then we could all move forward with confidence.
Thursday, April 30, 2009
Thursday, April 23, 2009
So what did the Budget do for enterprise?
Rarely have I approached a budget less optimistic that anything would be done to stimulate enterprise - the good news is that I was not disappointed! Once you look behind the political "crowd pleasers" there is nothing to cheer anyone in business or indeed considering starting one.
We all appreciate that the public finances are in an unprecedented mess but real action to address this would in itself be good news for business. What companies need is:
- faith in a governments ability to accurately forecast growth (or decline) which the Treasury seems spectacularly unable to do. They have stretched the bounds of credibility too far this time and it begs the question of the Treasury - are they political "spinners" or public employees providing unbiased opinion based upon fact?
- a clear medium and long term strategy to eradicate the record levels of debt which we currently see. This was no-where to be seen. History will treat very harshly those who play politics with the future of millions of people. In the last 18 months the government has mortgaged the future of the next generation for the next 18 years.
- incentives to reduce unemployment by taking on extra staff. Unfortunately the tax on employment for businesses is so high that to increase your work force at the moment is actively discouraged. A holiday on employer NI for all new employees taken from the unemployment register would be enough to sway some business towards employing new staff, thus saving unemployment benefit and increasing the tax take.
- belief in the fairness of the system. Small businesses cannot afford high powered tax advisors and so in general pay full tax on profits earned. Big business pays a fraction as they employ tax avoidance advice to minimise their contribution. If you analysed profits announced by FTSE100 companies and then the corporation tax paid there would not be a high correlation! Tesco announced £3billion in profits recently - what is the size of the cheque that they will be writing to the Treasury?
Simple measures to encourage enterprise could radically improve our economy, revitalise industry and capture the innovation that exists in this great country. But we see nothing. Some nods to the lobbying by big business which will do little for the economy. Does anyone truly believe that offering a £2000 part exchange on a 10 year old car which you must have owned for at least 12 months will make people rush out to buy a brand new car?! If you ride around in an old banger the chances are that you do not want or cannot afford a new car.
The debt fuelled boom has ended with the biggest bust ever seen. The future is based upon saving and investment (not the euphemism used by government in lieu of spending), reducing and eliminating debt so that future generations can benefit. Delaying this strategy by even a few months condemns us to years of misery - this is no time to play party politics.
We all appreciate that the public finances are in an unprecedented mess but real action to address this would in itself be good news for business. What companies need is:
- faith in a governments ability to accurately forecast growth (or decline) which the Treasury seems spectacularly unable to do. They have stretched the bounds of credibility too far this time and it begs the question of the Treasury - are they political "spinners" or public employees providing unbiased opinion based upon fact?
- a clear medium and long term strategy to eradicate the record levels of debt which we currently see. This was no-where to be seen. History will treat very harshly those who play politics with the future of millions of people. In the last 18 months the government has mortgaged the future of the next generation for the next 18 years.
- incentives to reduce unemployment by taking on extra staff. Unfortunately the tax on employment for businesses is so high that to increase your work force at the moment is actively discouraged. A holiday on employer NI for all new employees taken from the unemployment register would be enough to sway some business towards employing new staff, thus saving unemployment benefit and increasing the tax take.
- belief in the fairness of the system. Small businesses cannot afford high powered tax advisors and so in general pay full tax on profits earned. Big business pays a fraction as they employ tax avoidance advice to minimise their contribution. If you analysed profits announced by FTSE100 companies and then the corporation tax paid there would not be a high correlation! Tesco announced £3billion in profits recently - what is the size of the cheque that they will be writing to the Treasury?
Simple measures to encourage enterprise could radically improve our economy, revitalise industry and capture the innovation that exists in this great country. But we see nothing. Some nods to the lobbying by big business which will do little for the economy. Does anyone truly believe that offering a £2000 part exchange on a 10 year old car which you must have owned for at least 12 months will make people rush out to buy a brand new car?! If you ride around in an old banger the chances are that you do not want or cannot afford a new car.
The debt fuelled boom has ended with the biggest bust ever seen. The future is based upon saving and investment (not the euphemism used by government in lieu of spending), reducing and eliminating debt so that future generations can benefit. Delaying this strategy by even a few months condemns us to years of misery - this is no time to play party politics.
Saturday, April 18, 2009
Can The Apprentice teach us anything?
So we are in the throes of another series of "The Apprentice" and I am still undecided - is it a good thing for encouraging enterprise or not? Without doubt it is compellingly entertaining and "good television" but is it giving prospective entrepreneurs the wrong impression of what it takes to start up in business?
In favour:
- There are good lessons to be learned from the exercises and "one liners" from Alan Sugar
- It highlights personal characteristics and the importance of teamwork
- It forms an excellent training aid on how NOT to do things!
- It raises the profile of business
Against:
- The participants are selected to represent the most divisive in society to engineer conflict
- Without exception the candidates are self deluded as to their skills and abilities
- Sir Alan is not looking for an "Apprentice" but a competent manager
- The programme is unclear as to its purpose - is it seeking a leader, apprentice, manager or entrepreneur?
I believe that the viewing public are generally astute and can see from an early stage those who are out for a "media career"; Z list wanabees; nasty personalities and hopeless inadequates. Once these are eliminated there are few if any credible candidates left to assume the mantle of a true business person.
The tasks are appropriate to determine any potential leadership qualities but as each candidate is solely out to destroy their competitors the result is usually determined by who can wriggle their way out of any blame the best. Perhaps if Sir Alan was to fire people who portrayed an obvious aversion to teamwork, truth, hard work and intelligence we would see someone win who was worthy of the title.
Think back - how many of the candidates would you want to employ or work for? None probably!
So The Apprentice is probably best watched for purely entertainment purposes and as an example of how NOT to behave in business. Then it may play a useful role.
In favour:
- There are good lessons to be learned from the exercises and "one liners" from Alan Sugar
- It highlights personal characteristics and the importance of teamwork
- It forms an excellent training aid on how NOT to do things!
- It raises the profile of business
Against:
- The participants are selected to represent the most divisive in society to engineer conflict
- Without exception the candidates are self deluded as to their skills and abilities
- Sir Alan is not looking for an "Apprentice" but a competent manager
- The programme is unclear as to its purpose - is it seeking a leader, apprentice, manager or entrepreneur?
I believe that the viewing public are generally astute and can see from an early stage those who are out for a "media career"; Z list wanabees; nasty personalities and hopeless inadequates. Once these are eliminated there are few if any credible candidates left to assume the mantle of a true business person.
The tasks are appropriate to determine any potential leadership qualities but as each candidate is solely out to destroy their competitors the result is usually determined by who can wriggle their way out of any blame the best. Perhaps if Sir Alan was to fire people who portrayed an obvious aversion to teamwork, truth, hard work and intelligence we would see someone win who was worthy of the title.
Think back - how many of the candidates would you want to employ or work for? None probably!
So The Apprentice is probably best watched for purely entertainment purposes and as an example of how NOT to behave in business. Then it may play a useful role.
Tuesday, April 14, 2009
You've got to be in it to win it
I was talking to one of our tenants last week about the effort involved in entering business competitions and if it is worth it. They are a successful business and indeed won three awards last year but were questioning the point of entering more at a time when maximum effort is being put into growing the company.
Applications to the various competitions advertised can be time consuming and it is easy to overlook or ignore them in favour of more pressing items; however I believe that this is a mistake. The issue at hand is not about time available but one of strategy. Why are you entering the competitions? If it is solely for personal vanity then perhaps it is a low priority but if it forms an integral part of your marketing and business strategy then there is a compelling argument to pursue these opportunities with gusto.
At NWES we have always considered the entering of appropriate competitions as an important activity and on analysis I would categorise the following as sound reasons for incorporating this into your plans:
1. It amounts to low cost marketing and advertising. In a time when every penny counts it is vital to account for every penny of your marketing spend. Competition entries take up time but not money (usually) and assuming that you make it to the final short list can provide valuable publicity on a wide scale. A good example is the Barclays "Trading Places" awards which are currently looking for entries. Here previous winners are featured on national publicity, there are articles in heavyweight papers and trade magazines and all for free! This level of exposure would be beyond all of the winners and can only accelerate the growth in their businesses.
2. It improves staff morale, retention and recruitment. A little thought through by product of winning competitions is the effect that it has on staff members. Everyone likes to be associated with success and feel pride in working for their company. At NWES we focused on a particular category for three years which was the EDP "Staff Care" award sponsored by the Learning and Skills Council.. After being in the final three for two years we won it on the third attempt in 2008. In essence this was won for being the company in the region which does the most for staff through induction, support, training and reward. We have always felt that we care about every member of staff who works for us but winning this award demonstrated this to the outside world. In the current climate staff loyalty is key and by winning this we have shown that NWES is an excellent company to work for - it makes retention and recruitment much easier.
3. The "feelgood factor". Winning is addictive! Without doubt it engenders a lift within a company and an added "spring in the step" when going about daily duties. At a time when all around seems doom laden this is a quick and easy way to lift spirits. This should never be underestimated. I am a great believer in that the general tone of a workplace is reflected in the work produced. A demotivated or unhappy workforce are not productive and can spell the end for many companies. Happy people work better!
4. It leads to more business. Everyone likes to be associated with success and the same is evident within the business community. At a time when supply chains are crucial, businesses will wish to ally themselves with "award winning" companies. The publicity from my first point and the added prominence within your sector can lead to new business. We use our award winning status in bidding for new contracts to establish our credentials and demonstrate our ethos. I cannot say for certain that it leads to new business but I would like to think that it plays its part.
5. Awards ceremonies are fun! Do not underestimate the restorative powers of a good night out - especially when someone else is paying! Enjoy it you have worked hard enough for it.
In summary a carefully planned awards entry strategy can have many benefits to your company. Next time you see an appropriate competition enter it because "you have to be in it to win it"
Applications to the various competitions advertised can be time consuming and it is easy to overlook or ignore them in favour of more pressing items; however I believe that this is a mistake. The issue at hand is not about time available but one of strategy. Why are you entering the competitions? If it is solely for personal vanity then perhaps it is a low priority but if it forms an integral part of your marketing and business strategy then there is a compelling argument to pursue these opportunities with gusto.
At NWES we have always considered the entering of appropriate competitions as an important activity and on analysis I would categorise the following as sound reasons for incorporating this into your plans:
1. It amounts to low cost marketing and advertising. In a time when every penny counts it is vital to account for every penny of your marketing spend. Competition entries take up time but not money (usually) and assuming that you make it to the final short list can provide valuable publicity on a wide scale. A good example is the Barclays "Trading Places" awards which are currently looking for entries. Here previous winners are featured on national publicity, there are articles in heavyweight papers and trade magazines and all for free! This level of exposure would be beyond all of the winners and can only accelerate the growth in their businesses.
2. It improves staff morale, retention and recruitment. A little thought through by product of winning competitions is the effect that it has on staff members. Everyone likes to be associated with success and feel pride in working for their company. At NWES we focused on a particular category for three years which was the EDP "Staff Care" award sponsored by the Learning and Skills Council.. After being in the final three for two years we won it on the third attempt in 2008. In essence this was won for being the company in the region which does the most for staff through induction, support, training and reward. We have always felt that we care about every member of staff who works for us but winning this award demonstrated this to the outside world. In the current climate staff loyalty is key and by winning this we have shown that NWES is an excellent company to work for - it makes retention and recruitment much easier.
3. The "feelgood factor". Winning is addictive! Without doubt it engenders a lift within a company and an added "spring in the step" when going about daily duties. At a time when all around seems doom laden this is a quick and easy way to lift spirits. This should never be underestimated. I am a great believer in that the general tone of a workplace is reflected in the work produced. A demotivated or unhappy workforce are not productive and can spell the end for many companies. Happy people work better!
4. It leads to more business. Everyone likes to be associated with success and the same is evident within the business community. At a time when supply chains are crucial, businesses will wish to ally themselves with "award winning" companies. The publicity from my first point and the added prominence within your sector can lead to new business. We use our award winning status in bidding for new contracts to establish our credentials and demonstrate our ethos. I cannot say for certain that it leads to new business but I would like to think that it plays its part.
5. Awards ceremonies are fun! Do not underestimate the restorative powers of a good night out - especially when someone else is paying! Enjoy it you have worked hard enough for it.
In summary a carefully planned awards entry strategy can have many benefits to your company. Next time you see an appropriate competition enter it because "you have to be in it to win it"
Tuesday, April 7, 2009
Do we really have "Solutions for Businesses"?
The government has recently launched its "Solutions for Businesses" product portfolio which is the result of much consultation under the Business Support Simplification Programme. On reading the proposals it is difficult to see much to argue with; the product range is rationalised, it hits the main elements of support that a new, growing and maturing business will need and it is simple to understand. So why is it that I still retain some element of doubt that we will see real change?
Perhaps it is because the path of history of successive governments is littered with good intentions. So often we see attempts to improve the way that things are done in many areas but unless you alter the mindset of those charged with administering the delivery then little will change for the end user other than the "spin".
In "Solutions for Business" we have a good framework from which to start really building a business support arena worthy of the ambition to make the UK a leading place to start and grow a business. The big test is can different government departments resist the urge to add pet projects, create new streams and smother with bureaucracy? Already the initial portfolio has had an addition with the advent of a "Support for the Automotive Industry" product. Why this funding could not have been added to an existing strand such as the excellent Manufacturing Advice Service (MAS) I do not understand. The desire to create a headline with something "new" overrides the common sense approach every time. Hence my concern and doubts.
To make this work we need real leadership at the top in government with a firm pledge that no new products will be launched for a given period at which time the portfolio will be reviewed to assess the impact and need for change. Of course there will be times when it is right to support a sector or industry undergoing change but this can be done within the existing framework. An announcement of extra funding into an existing product may not gain the attention as much as a "new" launch but it is what business needs and wants and if government is to retain any scrap of credibility it is a change in the mindset of policy makers that is required.
Solutions for Business needs to be seen as the government vehicle for all help and not just a BERR initiative. Perhaps the Treasury could "fine" any department/authority that announces an initiative which does not fit any funding stream into the existing portfolio and that creates a new "brand". A fine equivalent to the amount pledged should concentrate the mind! As we have finally got to the stage where there is a credible support package it would be madness not to give it wholehearted backing for a given period to determine its impact.
Full adherence to the scheme is envisaged from 2010 onwards but I would hope that all delivery programmes are matched as soon as possible. We do not have the luxury of time in the current climate - what is needed now is immediate action.
Perhaps it is because the path of history of successive governments is littered with good intentions. So often we see attempts to improve the way that things are done in many areas but unless you alter the mindset of those charged with administering the delivery then little will change for the end user other than the "spin".
In "Solutions for Business" we have a good framework from which to start really building a business support arena worthy of the ambition to make the UK a leading place to start and grow a business. The big test is can different government departments resist the urge to add pet projects, create new streams and smother with bureaucracy? Already the initial portfolio has had an addition with the advent of a "Support for the Automotive Industry" product. Why this funding could not have been added to an existing strand such as the excellent Manufacturing Advice Service (MAS) I do not understand. The desire to create a headline with something "new" overrides the common sense approach every time. Hence my concern and doubts.
To make this work we need real leadership at the top in government with a firm pledge that no new products will be launched for a given period at which time the portfolio will be reviewed to assess the impact and need for change. Of course there will be times when it is right to support a sector or industry undergoing change but this can be done within the existing framework. An announcement of extra funding into an existing product may not gain the attention as much as a "new" launch but it is what business needs and wants and if government is to retain any scrap of credibility it is a change in the mindset of policy makers that is required.
Solutions for Business needs to be seen as the government vehicle for all help and not just a BERR initiative. Perhaps the Treasury could "fine" any department/authority that announces an initiative which does not fit any funding stream into the existing portfolio and that creates a new "brand". A fine equivalent to the amount pledged should concentrate the mind! As we have finally got to the stage where there is a credible support package it would be madness not to give it wholehearted backing for a given period to determine its impact.
Full adherence to the scheme is envisaged from 2010 onwards but I would hope that all delivery programmes are matched as soon as possible. We do not have the luxury of time in the current climate - what is needed now is immediate action.
Subscribe to:
Posts (Atom)