I have resisted the temptation so far to comment on the scandal of MPs expenses, however it does raise a much more important question - how are our taxes spent?
What I find difficult is the inexplicable refusal of anyone named to admit what we all know to be reality i.e. they have been caught "with their hands in the till". The answer......in line with the general mentality of the public sector is to have an inquiry, convene a panel, take ages and come up with a compromise.
Is business any different? I would split businesses into those that are owner run and those which are larger e.g. PLC. In the latter there is always an expenses policy and most people lower down in the organisation adhere to them under threat of dismissal if they falsify claims. Higher up some of these organisations are run as personal fiefdoms by individuals who have lost all sense of reality. Just look at the extravagant expenditure incurred by Fred Goodwin or the arrogance of the US car manufacturers flying around in private planes. It is not their money and so they regard it as a "perk" and there are too few people prepared to challenge them. Exploitation in my eyes.
In an owner run company there is a knowledge that every penny counts and so expenses are kept to an absolute minimum and have to be justified. No expense account lunches here - a sandwich during a meeting is the most that can be expected. In NWES expenses are minimal. Staff members understand that we can only spend what we earn and so if we increase mileage rates for example then there is less to pay on salaries.
We have heard so much about "moral compasses" from our politicians over the years but most have been shown to lack these. Forget the rules, common sense should dictate what can be justified and what cannot. There is a simple solution which can be implemented within a week. ALL employees in the public sector should adhere to a single set of rules which apply to all publicly funded organisations. Most businesses could supply a template to be adopted and then there would be no need to hold special committees etc. It would be transparent and those of us who pay taxes would know that our money was being used wisely.
I know that this will not happen because it employs common sense and a quick and workable solution. Also there are too many people with a vested interest in maintaining their perks. Still we can hope!
Thursday, May 28, 2009
Thursday, May 21, 2009
Do we value work placements?
As we get into the throes of the academic summer term the thoughts of teachers and students in Years 10 & 11 turn to the question of work placements. What should be one of the most important choices of the whole year for school and student alike is so often an afterthought and appears to be a "tick the box" exercise. There are some brilliant exceptions of course but my experience suggests that these are unfortunately in a minority.
One of the key tasks of a school is to prepare their students for a life of worthwhile work (although some teachers disagree with me!) and this - often first taste - of work experience is crucial. Chose correctly and it can be the catalyst for making important career choices; get it wrong and options can be cut or unfairly restricted.
So what makes a good work placement? I have a few simple thoughts which should be at the core of any decision:
1. The student and the placement have to be carefully matched to ensure that both parties benefit from the experience.
2. Pre and post placement reviews are a necessity to agree a learning programme and then assess what was achieved.
3. Placements with employers should all have a full and detailed work plan to ensure that the charge of "unpaid tea boy/girl" is unfounded.
4. Identify what motivates each student and use this in the matching process in 1 above - as any employer will tell you, a motivated employee is worth looking after.
5. The placement lasts for the normal working day whatever that may be. For a student to understand what work entails they need to experience the real thing not a truncated version.
6. Incorporate the work placement into the curriculum and use the experience gained in appropriate lessons e.g. Business Studies
Employers are delighted to help schools with rich work placements but find the bureaucracy and lack of real ongoing engagement to be deeply unfulfilling. Businesses understand the need to look after the workforce of the future but find it frustrating to come up against obstacles when offering to help. A lot of good work is going on but perhaps now is the time to have a radical rethink about how these placements are organised and what they should achieve. With the advent of the new diplomas a different tack needs to be taken so when better than now to think radical thoughts?
In Norfolk "The Exchange" is the place to go for advice on placements www.norfolk-exchange.org.uk and any company wanting to know how to participate should contact them as the first point of call. I know that The Exchange is looking at many exciting innovations to come in over the coming year so keep watching!
One final thought ......perhaps ALL teachers should also undertake a two week work placement EVERY year in the private sector - it would help them understand the importance of placements, provide material for lessons, re-invigorate "tired" teachers etc. Could it ever happen?
One of the key tasks of a school is to prepare their students for a life of worthwhile work (although some teachers disagree with me!) and this - often first taste - of work experience is crucial. Chose correctly and it can be the catalyst for making important career choices; get it wrong and options can be cut or unfairly restricted.
So what makes a good work placement? I have a few simple thoughts which should be at the core of any decision:
1. The student and the placement have to be carefully matched to ensure that both parties benefit from the experience.
2. Pre and post placement reviews are a necessity to agree a learning programme and then assess what was achieved.
3. Placements with employers should all have a full and detailed work plan to ensure that the charge of "unpaid tea boy/girl" is unfounded.
4. Identify what motivates each student and use this in the matching process in 1 above - as any employer will tell you, a motivated employee is worth looking after.
5. The placement lasts for the normal working day whatever that may be. For a student to understand what work entails they need to experience the real thing not a truncated version.
6. Incorporate the work placement into the curriculum and use the experience gained in appropriate lessons e.g. Business Studies
Employers are delighted to help schools with rich work placements but find the bureaucracy and lack of real ongoing engagement to be deeply unfulfilling. Businesses understand the need to look after the workforce of the future but find it frustrating to come up against obstacles when offering to help. A lot of good work is going on but perhaps now is the time to have a radical rethink about how these placements are organised and what they should achieve. With the advent of the new diplomas a different tack needs to be taken so when better than now to think radical thoughts?
In Norfolk "The Exchange" is the place to go for advice on placements www.norfolk-exchange.org.uk and any company wanting to know how to participate should contact them as the first point of call. I know that The Exchange is looking at many exciting innovations to come in over the coming year so keep watching!
One final thought ......perhaps ALL teachers should also undertake a two week work placement EVERY year in the private sector - it would help them understand the importance of placements, provide material for lessons, re-invigorate "tired" teachers etc. Could it ever happen?
Tuesday, May 12, 2009
When to ask for help
I was chatting to a business acquaintance recently when the topic turned to how and when an entrepreneur should expand their management team. One particular company was discussed as we both knew and had some knowledge of the principal and their business. As is the case in so many fledgling enterprises the business was doing very well, had built up an enviable customer list, was growing steadily and yet the owner seemed to be doing everything himself. One minute on the phone to a supplier, the next in the warehouse moving on to discussing finance and then dealing with an advert.
An entrepreneur has to be many things but they also need to know when to expand the top team to allow them to build the business rather than run the business. Too often a good business stalls because the owner cannot physically do more and they then become a bottleneck holding up all growth - the very thing which they should be concentrating on. A good example of how to bring in people at the right time is Karan Bilimoria the founder of Cobra beer. Despite being an accountant Karan still understood that the role of CEO meant that he had to delegate and this he did in 2001 with the appointment of a Financial Director.
"He was a godsend. He came in and took a huge weight off me. By taking on the FD role he freed me up. It shows the huge impact that a new member of a team can bring."
Whatever the size of business and the skills of the owner there comes a time when a team has to be built at a senior level. Leave it too long and the business stalls and can crash, too early and the costs may be a limiting factor. It is a skill to determine the right time and that is where an external pair of eyes can help. Getting some independent advice from a trusted advisor can help the owner of a small business to see the problems that they are too close to identify.
An entrepreneur needs to get their hands dirty but not to the extent of being a "Jack of all trades". Concentrate on what you are good at and expand your business through strategic thinking - it works. Just ask Karan Bilimoria!
An entrepreneur has to be many things but they also need to know when to expand the top team to allow them to build the business rather than run the business. Too often a good business stalls because the owner cannot physically do more and they then become a bottleneck holding up all growth - the very thing which they should be concentrating on. A good example of how to bring in people at the right time is Karan Bilimoria the founder of Cobra beer. Despite being an accountant Karan still understood that the role of CEO meant that he had to delegate and this he did in 2001 with the appointment of a Financial Director.
"He was a godsend. He came in and took a huge weight off me. By taking on the FD role he freed me up. It shows the huge impact that a new member of a team can bring."
Whatever the size of business and the skills of the owner there comes a time when a team has to be built at a senior level. Leave it too long and the business stalls and can crash, too early and the costs may be a limiting factor. It is a skill to determine the right time and that is where an external pair of eyes can help. Getting some independent advice from a trusted advisor can help the owner of a small business to see the problems that they are too close to identify.
An entrepreneur needs to get their hands dirty but not to the extent of being a "Jack of all trades". Concentrate on what you are good at and expand your business through strategic thinking - it works. Just ask Karan Bilimoria!
Tuesday, May 5, 2009
Is football a business?
One of my passions is following Norwich City FC who have just fallen into the third tier of English football for the first time in my lifetime. Much has already been written about their demise but I thought that I would look at it from a business perspective to analyse the problems that the club faces.
The Board: With any business a period of sustained decline over a number of years has to come down to the failings of the Board of Directors. A Board has several duties and responsibilities but its major role is to set strategy, empower and monitor progress. Under all of these measures the NCFC Board has spectacularly failed to deliver. There has been no published strategy other than a few meaningless platitudes such as "Prudence with Ambition" which point to a preoccupation with a marketing spin rather than any solid and workable business plan. There is an argument that the Board abdicated responsibility rather than empowering which has resulted in the current run down of its assets. Monitoring of progress should have been the easy bit but unfortunately there has been a weakness in not making the appropriate decisions at the right time - resulting in delay, confusion and a demoralised workforce. It would be easy to blame Delia Smith for all of the woes of the club but this is patently unfair. She has invested heavily in the club and recognised that she is not a natural Chairman and so did not take up this post. The mistake that she made was not to build a strong Board around her. Instead she has a decidedly substandard team which has been unable to meet the demands placed upon it. To rectify this Delia should be insisting that the Board is replaced with credible business people and a smattering of football experts that can take the club forwards to the next stage. Change is needed at this level before implementing the next stage in the clubs recovery.
The Executive Team: This is actually a hard one to call because apart from Neil Doncaster, the CEO, the rest of the senior team are almost invisible to the public eye. Any CEO who has overseen such failure must be at risk and Mr Doncaster is no exception. Unfortunately we have become used to carefully constructed "non phrases" emanating from this direction which amount to more spin rather than any desire to rectify the obvious failings within the club. Allowing key members of staff such as Andy Cullen to go without any adequate replacement has contributed to the spiral of decline. A club has to live within its means and as such every aspect of the business has to be looked at with a view to efficiency and unfortunately this does not appear to have been the case at NCFC. A strong team needs to be built to run the club with clear direction from the Board and the resources required to live within its means. Now is not the time for tinkering - the Canaries need major surgery.
The Manager: A strong manager is required at any football club. However their scope and remit should be clearly defined. Budgets provided, facilities made available and time allowed to implement change. A manager needs a strong team around them - people who fill the gaps in knowledge and ability and who can work together for the benefit of the club. As in any team a mixture of youth, experience, desire and proven success is preferred. Bryan Gunn our current manager has many of these skills in place and his desire to do well can probably never be surpassed. However is the support team up to the job? If Bryan can be mentored by an experienced and respected football figure then he could be the man to take NCFC back up into the Championship. Without a guiding hand the passion alone would not be enough but the club must stop the revolving managerial door which is destabilising and the reason why we are in our current position. This is the Boards fault. It is not my place to suggest who should fill this post - I am sure however that the track record of the current Board points to the fact that they cannot be trusted to get it right.
The Fans: In case anyone at the club had forgotten we are also known as CUSTOMERS! The support given has been stupendous despite the mediocrity that we have become accustomed to. The fans have done all that they can for the club and now it is time to repay this loyalty. I would estimate that the fans are worth £10m+ to the club in gate receipts and club related sundry expenditure alone - hence we are the most important part of the equation. No business can count upon the loyalty of its customers forever if it continues to disappoint them with the quality of its offering. Football is entertainment and discretionary expenditure even allowing for the tribal bond that links the fans to the club. There are many examples of well supported clubs losing their fan base through years of neglecting their needs. the fans are realistic - we do not expect Premiership glory but we do require commitment, entertainment and the odd moment of glory. (The average fan accepts that NCFC has one good year in ten!)
The Players: These are the employees of the club. Much has been written about how and why football beats to a different economic drum but this is patently not true. There is no need to run a football club any differently than any other business. Employee wage inflation should be halted, contracts rewritten to allow clubs to dismiss under performing players and to stop the disgruntled player seeking to leave at their whim. The culture of win bonuses should be dropped with say an end of season target resulting in a one off payment relevant to the clubs financial benefit. The argument would be that no players would want to come to Norwich if we insisted upon such contracts. I do not believe this is true. We would attract players who are keen to make their mark, can see significant reward for success and with a desire to achieve. It only needs one club to start the process and the rest will soon follow.
Relegation should be a wake up call for everyone and an opportunity to implement the tough decisions for the long term future of the club. No more talk of "sugar daddies" riding to the rescue with riches galore - despite the spin few clubs have this fallback position - indeed most would be delighted with the investment made by Delia. Run the club well and success will follow, build the right team on and off the pitch and the fans (customers d not forget) will support them forever. The first step has to come from Delia though to build a strong Board. The very best of luck Delia from all City fans.
On the ball City.
The Board: With any business a period of sustained decline over a number of years has to come down to the failings of the Board of Directors. A Board has several duties and responsibilities but its major role is to set strategy, empower and monitor progress. Under all of these measures the NCFC Board has spectacularly failed to deliver. There has been no published strategy other than a few meaningless platitudes such as "Prudence with Ambition" which point to a preoccupation with a marketing spin rather than any solid and workable business plan. There is an argument that the Board abdicated responsibility rather than empowering which has resulted in the current run down of its assets. Monitoring of progress should have been the easy bit but unfortunately there has been a weakness in not making the appropriate decisions at the right time - resulting in delay, confusion and a demoralised workforce. It would be easy to blame Delia Smith for all of the woes of the club but this is patently unfair. She has invested heavily in the club and recognised that she is not a natural Chairman and so did not take up this post. The mistake that she made was not to build a strong Board around her. Instead she has a decidedly substandard team which has been unable to meet the demands placed upon it. To rectify this Delia should be insisting that the Board is replaced with credible business people and a smattering of football experts that can take the club forwards to the next stage. Change is needed at this level before implementing the next stage in the clubs recovery.
The Executive Team: This is actually a hard one to call because apart from Neil Doncaster, the CEO, the rest of the senior team are almost invisible to the public eye. Any CEO who has overseen such failure must be at risk and Mr Doncaster is no exception. Unfortunately we have become used to carefully constructed "non phrases" emanating from this direction which amount to more spin rather than any desire to rectify the obvious failings within the club. Allowing key members of staff such as Andy Cullen to go without any adequate replacement has contributed to the spiral of decline. A club has to live within its means and as such every aspect of the business has to be looked at with a view to efficiency and unfortunately this does not appear to have been the case at NCFC. A strong team needs to be built to run the club with clear direction from the Board and the resources required to live within its means. Now is not the time for tinkering - the Canaries need major surgery.
The Manager: A strong manager is required at any football club. However their scope and remit should be clearly defined. Budgets provided, facilities made available and time allowed to implement change. A manager needs a strong team around them - people who fill the gaps in knowledge and ability and who can work together for the benefit of the club. As in any team a mixture of youth, experience, desire and proven success is preferred. Bryan Gunn our current manager has many of these skills in place and his desire to do well can probably never be surpassed. However is the support team up to the job? If Bryan can be mentored by an experienced and respected football figure then he could be the man to take NCFC back up into the Championship. Without a guiding hand the passion alone would not be enough but the club must stop the revolving managerial door which is destabilising and the reason why we are in our current position. This is the Boards fault. It is not my place to suggest who should fill this post - I am sure however that the track record of the current Board points to the fact that they cannot be trusted to get it right.
The Fans: In case anyone at the club had forgotten we are also known as CUSTOMERS! The support given has been stupendous despite the mediocrity that we have become accustomed to. The fans have done all that they can for the club and now it is time to repay this loyalty. I would estimate that the fans are worth £10m+ to the club in gate receipts and club related sundry expenditure alone - hence we are the most important part of the equation. No business can count upon the loyalty of its customers forever if it continues to disappoint them with the quality of its offering. Football is entertainment and discretionary expenditure even allowing for the tribal bond that links the fans to the club. There are many examples of well supported clubs losing their fan base through years of neglecting their needs. the fans are realistic - we do not expect Premiership glory but we do require commitment, entertainment and the odd moment of glory. (The average fan accepts that NCFC has one good year in ten!)
The Players: These are the employees of the club. Much has been written about how and why football beats to a different economic drum but this is patently not true. There is no need to run a football club any differently than any other business. Employee wage inflation should be halted, contracts rewritten to allow clubs to dismiss under performing players and to stop the disgruntled player seeking to leave at their whim. The culture of win bonuses should be dropped with say an end of season target resulting in a one off payment relevant to the clubs financial benefit. The argument would be that no players would want to come to Norwich if we insisted upon such contracts. I do not believe this is true. We would attract players who are keen to make their mark, can see significant reward for success and with a desire to achieve. It only needs one club to start the process and the rest will soon follow.
Relegation should be a wake up call for everyone and an opportunity to implement the tough decisions for the long term future of the club. No more talk of "sugar daddies" riding to the rescue with riches galore - despite the spin few clubs have this fallback position - indeed most would be delighted with the investment made by Delia. Run the club well and success will follow, build the right team on and off the pitch and the fans (customers d not forget) will support them forever. The first step has to come from Delia though to build a strong Board. The very best of luck Delia from all City fans.
On the ball City.
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