Sometimes doing less is doing more

So what will 2012 bring to those of us dedicated to encouraging enterprise? Over the last few weeks I have been considering what it requires to give the country a much needed business boost. Whilst I cannot claim any amazing insights my general conclusion was that we can often stimulate growth by stopping doing things! Vast sums of money are not needed - just goodwill, strength and determination. So to add to the numerous New Year lists here is my humble offering of a half dozen ideas which need some work but will hopefully provoke debate:

1. Speed up the planning process. Forget the controversy over the government plans and lets assume that the Green Belt is fully protected. Planning officers must be dragged into the real world. Any development - residential or commercial - on brownfield land which is say less than 5000msq and is designed to the highest BREEAM standards automatically gets planning permission. This improves the quality of stock at a stroke and is a much greater stimulus than enterprise zone status. It allows planners to concentrate on more strategic developments and hopefully improve the plethora of "rabbit hutch" housing that springs up everywhere.

2. Reform economic development. There are some truly inspirational EcDev professionals in local authorities. There are also some blockers. Let each LEP control all of the staff and budgets for EcDev in their areas. This should allow LEPs to really influence what happens. It puts budgets in control of businesses who are best placed to know what business needs and should avoid the repetition of meetings, papers, local initiatives etc. More money should get to the front line as staff numbers are rationalised and the leaders in EcDev are finally given the authority to do what they know needs to be done.

3. Free local authority assets. Remove all restrictions on what local authorities can do with their asset base. If they want to sell and spend the funds then let them. We vote for our representatives so give them the power to improve the area as they see fit. If they mess it up then local voters have only themselves to blame. It would herald a new era of freedom and true localism. I know of many councillors who could really make a difference given the opportunity instead of tinkering within archaic rules.

4.Change government contracting. We hear many promises about helping SMEs to access government contracts but little happens. With immediate effect any government contract of less than £10m pa can only be let to an SME. The government would get better value for money, more innovation, less "cronyism" and greater transparency.

5. Encourage philanthropy. There are too few people acting as philanthropists. We need a new era of giving and sharing - not through ineffective taxation but directly. Encourage giving in big companies via a simple annual league table of FTSE250 companies based on percentage of CSR to turnover. Make sure that it has to be displayed prominently. It will allow people to make up their mind what type of company they want to do business with. Amongst the rich reform inheritance tax to penalise those who "want to take it with them".

6. Stop giving government support to large companies. Most business people are sick of seeing large multinational companies getting handouts because they threaten to move or invest elsewhere. They should be able to raise their own investment and I doubt if one penny of government support has actually contributed to an increased take for the Treasury. We should be encouraging growth via start ups and new emerging businesses not propping up tired leviathans.

Well that should set a few hares running!

A merry public sector Christmas?!

All employees planning to dash through the snow in a one horse open sleigh, going over the fields and laughing all the way are advised that a Risk Assessment will be required addressing the safety of an open sleigh for members of the public. This assessment must also consider whether it is appropriate to use only one horse for such a venture, particularly where the re are multiple passengers.

 Please note that permission must also be obtained in writing from landowners before their fields may be entered. To avoid offending those not participating in celebrations, we would request that laughter is moderate only and not loud enough to be considered a noise nuisance.Benches, stools and orthopaedic chairs are now available for collection by any shepherds planning or required to watch the ir flocks at night.

While provision has also been made for remote monitoring of flocks by CCTV cameras from a centrally heated shepherd observation hut, all users of this facility are reminded that an emergency response plan must be submitted to account for known risks to the flocks. The angel of the Lord is additionally reminded that, prior to shining his/her glory all around, s/he must confirm that all shepherds are wearing appropriate Personal Protective Equipment to account for the harmful effects of UVA, UVB and the overwhelming effects of Glory.Following last years well-publicised case, everyone is advised that Equal Opportunities legislation prohibits any comment with regard to the redness of any part of Mr R Reindeer.

Further to this, exclusion of Mr R Reindeer from reindeer games will be considered discriminatory and disciplinary action will be taken against those found guilty of this offence.While it is acknowledged that gift bearing is a common practice in various parts of the world, particularly the Orient, everyone is reminded that the bearing of gifts is subject to Hospitality Guidelines and all gifts must be registered. This applies regardless of the individual, even royal personages. It is particularly noted that direct gifts of currency or gold are specifically precluded, while caution is advised regarding other common gifts such as aromatic resins that may evoke allergic reactions.

Finally, in the recent instance of the infant found tucked up in a manger without any crib for a bed, Social Services have been advised and will be arriving shortly.

An old story but scarily it could be so true!

Merry Christmas to all

Business Link - what next?

So what follows the demise of Business Link later this month? Good news is that the website resource is being updated and expanded and remains one of the first ports of call for information on a wide variety of business related subjects. www.businesslink.gov.uk This is to be backed up with a telephone service but it is NOT an advice service and merely a navigation around the site for those in need or without access to internet services.

The government is also in the process of procuring a "Business Coaching for Growth" service which will target those companies with the best potential for high growth. This will be formally launched in April next year and should provide excellent support for the SME's accepted onto the scheme. There is likely to be a company contribution to the cost - which is reasonable - but the quality of assistance is likely to be much higher than that seen with other government initiatives.

Mentoring is now being accepted as a valuable resource and the website www.mentorsme.co.uk is a useful portal. However I have some reservations that this is in effect an unregulated "free for all" and in some cases could be used to gain business by unscrupulous operators or allow poor mentors to operate causing unknown mayhem. It is NOT, as has been suggested by some in government, a replacement for advice services. If quality can be driven up with mentors then again this is a useful addition to the landscape.

I am reasonably ambivalent about the loss of free advice to established businesses that do not display high growth potential. There is a wealth of private sector paid for support available and this should be the first point of call for the majority. Unfortunately the good work done by regional Business Link operators was often undone by the need to chase numbers, providing a light touch - often rated poorly by recipients. When you pay for support you value it more highly and take an active interest!

My biggest worry is the lack of a national start up service designed to help and support those entrepreneurs taking the first tentative steps on the road to self employment. I know that there are schemes for the unemployed but initial feedback indicates that self employment is dropping off the radar - unbelievable with jobs in short supply. However we should not wait for people to become unemployed before encouraging business start ups. We need to stimulate enterprise and for those facing redundancy, looking to change lifestyle or spinning out of a larger business or public sector environment starting a business is a logical step.

What is needed is a solid grounding, help with establishing the demand for the product or service and access to funding to give these start ups a better than normal chance of surviving. The 1980's saw an explosion in self employment, reducing the jobless figures and stimulating a "can do" attitude instead of the current dependant nature which appears to have infiltrated many areas of society.

Fill this start up gap and I believe that the government is close to covering the majority of the bases which should be expected by a pro enterprise administration. If it does that then the demise of Business Link face to face services will not have much of an impact. Fail to do so and you risk choking the supply chain of innovation which this country so desperately needs.

Enterprise Zone - blessing or curse?

The subject of Enterprise Zones is the “hot” business topic of the moment with the news that areas within Lowestoft, Beccles and Great Yarmouth have been bestowed with this favoured status in the latest round of Government announcements.

There is no doubt that anything which is designed to support the economy in these areas is to be welcomed, especially given that the focus of this zone is on the vital renewable energy sector which is still in its infant stage.

Before looking at what this could mean for the local economy, we need to go back some 30 years to the first round of Enterprise Zones, which were introduced in the early 1980’s as an answer to the recession which the country was in the grip of following years of industrial decline. Even then the concept was nothing new with the idea first arising in the USA in the late 1960’s. It may surprise many, that both in America and the UK, the principle was invented and espoused by those on the left of the political divide but it required a Conservative government to bring it to reality.

Then, as now, there were financial and planning incentives for companies to locate in these “favoured” areas. However it should be noted that the financial incentives are relatively modest and short term and it would be a very foolish business person who would make a long term location decision based solely upon Enterprise Zone status. What being an EZ can do is remove a barrier for growing and ambitious businesses and speed up the pace of recovery and/or investment into an area.

The real challenge with such temporary incentives is to turn Great Yarmouth and Lowestoft into competitive business locations to both retain and recruit more companies to the area. This will require much more work than simply marketing land with “benefits” attached. It will require a complete change in mindset for politicians, business people and the local workforce to ensure that the benefits are lasting and that the inward investment does not turn into outward losses once the incentives cease.

NWES was itself born in Lowestoft during the era of Enterprise Zones and since 1982 it has helped create over 15000 new businesses and transform the lives of many local people. It is a combination of people and places which breed success and one cannot work without the other. As such the lure of EZ status needs to be coupled with a strong business support structure provided by organisations such as ours, designed to provide companies with the skills to survive and grow at a quicker pace than they would otherwise have done.

It is easy to get carried away with forecasts of job growth – which can often lead to disappointment when they fail to be reached. The evidence of the eighties zones is that of a total of 63000 jobs created only 13000 were new jobs – the remainder merely being displaced from neighbouring areas.

So how can the EZ status provide a long term benefit for the area? A major difference between the current crop of zones and the previous is that each of the areas has based their application upon favouring a particular market segment – in our case renewables. This should avoid the displacement seen in areas such as Dudley which saw farmland transformed into a shopping complex putting many local traders out of business. To cement businesses into the area we need to attract major investment which it is difficult to move and this means infrastructure.

The Local Enterprise Partnership and councils have a task ahead of them which will require them to be fleet of foot and willing to concentrate effort and resource in the EZ, perhaps to the short term detriment of other places and schemes.

-         Planning needs to be overhauled with clear policy for the area available within the next 2-3 months and a guarantee that the planning process will not last more than a few days and weeks for eligible schemes.

-         Where infrastructure is needed it takes priority over ALL other schemes

-         Coherent marketing messages need to be ready within the month and distributed widely to potential interested parties

-         Local businesses need to be properly engaged to avoid short term displacement, negative comment and curtailed investment

-         Workforce training needs to be a priority in the targeted sector of energy

-         A strong economic development team needs to be assembled at short notice drawing far and wide for the very best professionals in the sector

-         A strong business support offering is required to meet skills and funding gaps inhibiting investment

-         The leading lights in the energy sector need to sing the praises of Great Yarmouth and Lowestoft as we will be in direct competition with Humberside for he same investment.

The task has only just begun and all that the EZ status gives us is a head start, but for business that is usually all they need and if we are to avoid the mistakes seen in previous generations we need to grasp the opportunity for this area to be the centre for the UK renewables industry and not lose out to other more entrepreneurial locations as happened with the oil and gas exploration sector in the seventies.

History can act as a useful guide for the future of Great Yarmouth and Lowestoft and there can be no excuses for not taking full advantage of this helping hand to transform the local landscape and finally break the dependant nature of these great towns.

Some words of encouragement for your LEP

Over the years I have had the privilege, honour and sometimes curse (!) of sitting on a number of public/private Boards and committees. My thoughts go out to all those who have recently chosen to sit on the Boards of the Local Enterprise Partnerships (LEPs). From my experience I would like to offer a few words of encouragement and warning designed to help each LEP achieve its aims and objectives.

These thoughts are in no order of importance and purely reflect my own experiences:

 - Set out your aims and objectives straight away
 - Be clear as to what you can and cannot achieve - do not try to be "all things to all men"
 - Do a few things well rather than many things badly
 - You are not a council committee so do not behave like one!
 - In setting up your constitution remain faithful to the simple premise of "one person one vote" and ensure that there is a private sector majority of members
 - In no circumstances agree to a constitution which gives public sector "founder members" the right to overturn a majority vote
 - Run the meetings just like a private sector Board - tight, focussed and make decisions rather than procrastinate
 - The public sector has an important role to play so make use of the knowledge held and do not set out to duplicate functions
 - If other quasi organisations are "backed into" a LEP as an executive or similar do not just accept that it is fit for purpose. Start a full review and if necessary reappoint or renew.
 - Have a simple informative website but do not spend silly money on it
 - Insist on a 75% rolling attendance rate from all members or they are voted off
 - Public sector members are generaly appointees and as such there may be a rapid churn due to elections, reshuffles etc. Where possible gain commitment for continuity or decisions will stall
 - Ensure that everyone around the table has authority to vote on all matters i.e. no deferring to gain cabinet/member etc approval
 - If the public sector funds the executive it is reasonable for them to request some ground rules. Agree them at the outset to avoid misunderstanding later.
 - You are local ENTERPRISE partnerships - so address Enterprise and do not get sidetracked on peripheral matters
 - Do not get sucked in to publicity campaigns unless they are integral to the core aims or you get tainted and alienate a wide cross section of the community
 - Be sensitive to political situations but make the right decision not the politically expedient one
 - Be open and transparent to avoid conspiracy theories - publish all Board minutes on the website etc
 - Be bold - no-one remembers people who do not make a difference
 - Think about who needs your help most - large corporates or pre start businesses - do not get sucked into the "glamour" of association with big names
 - Think carefully about what you want the executive to do - keep it small and tight
 - Do not directly deliver ANYTHING - enable others to do this

And finally before you make any decisions just ask yourself what your answer will be when your 8 year old grandson asks exeactly what did you achieve on the LEP?!

I wish everyone the best of luck and great success in achieving all that you set out to do - your country needs you!

Youth unemployment - why?

The latest unemployment figures make depressing reading if you are under 24, with 1 in 5 young people now being unemployed. Whilst the headlines will trumpet this fact, the reality is that youth unemployment has been on an upwards trend for many years, even in the "boom" times. Indeed given the greater numbers of university entrants now, perhaps the real amount of young people "not in employment" is much higher.

So why has this come about? For too long now younger members of society have been poorly treated by our generation, which seems to have forgotten the reason and importance of education as a preparation for the world of work. An obsession with league tables and exam passes, which can easily be manipulated, has led us to produce a cadre of young people who emerge into the real world of earning a living with the wide eyed gaze of a new born baby.

Now is the time to put aside ideological and political standpoints and agree a cross party approach to education which will not be touched for the next 10-15 years. If there is one element of our society which is calling out for a carefully thought through and implemented strategy it is education. For too long we have tolerated political tinkering (from all parties), the creeping influence of ideological views, poor teaching and incorrect investment.  Despite this there are numerous examples of clear thought, inspirational teachers and an understanding with business - just not enough to make a real difference.

I have taken a keen interest in the links between education and industry for many years now and can understand the frustration on both sides who are encumbered with a state of affairs which is not remotely fit for purpose. Perhaps the only league table that should be produced is how many pupils are engaged in gainful employment within 12 months of leaving school or university. At least then we can judge which schools prepare their young people for life beyond education. Of course there are many more factors to take into account but without a clear vision as to the purpose of education, from primary school to university, we are destined to retain high youth unemployment which is a crushing burden on society. If only a fraction of this money was invested into preventing unemployment everyone would be better off.

However any readjustment cannot be subject to the winds of political change, hence the need for a national education strategy agreed by all and with safeguards enshrined in legislation which prevents political meddling!

I employ 90 people - with a young average age. Recently we advertised entry grade positions and had 400 applications. Most were rejected through not meeting the simple instructions requested, poor spelling and CV's produced in something akin to text speak. Those individuals who were successful have been a delight to work with; enthusiastic, hardworking, willing to learn and bursting with potential. Academic qualifications do not mean a thing if there is no personality or social skills to accompany them - this is where many young people fall down.

We have a wonderful resource in our young people but now is the time to harness this and use it to build a bright future. The question is how many self interested politicians, antiquated union barons and short sighted CEO's will put aside their posturing to secure a great future for every young person leaving education?

Is Corporate Governance taken seriously?

In many ways the UK is considered a beacon when it comes to Corporate Governance - principally as a result of the 2010 Corporate Governance Code - but is it any more than window dressing?

Too many organisations - private, public and third sector - pay lip service to this important aspect of running a Board and company. Usually it is "added in" to a minor sub committee to report on once a year; and yet corporate governance has the ability to enhance the prospects of any company.

It is all about driving an enterprise forward whilst at the same time exercising prudent control.This must be obvious to all directors? Not really and little is likely to change when directors are often chosen via a "closed shop". Until we open our minds to the recruitment of directors and apply much more imaginative ways of selection, induction, development and appraisal then corporate governance is unlikely to change very much.

We have some building blocks in place - a sound Companies Act (2006), a patchy Corporate Governance Code (2010, a weak regulatory framework and some appalling laws which cut across the afore mentioned. How we arrange these blocks will dictate if we are heading for another spectacular collapse along the lines of RBS or Enron or taking a world beating role as the beacon of good governance.

No-one wants burdensome regulation but putting good governance at the top of a directors list of responsibilities will result in healthy businesses which allow the executive to drive forward from a firm foundation.

It would take little to transform corporate governance in the UK - and surely this would set us apart from other countries as a place for the reputable to do business? As a Chartered Director (there are still less than 1000 in the country) as a start EVERY listed company should have a CDir on the Board as a minimum within 12 months - at least this would show more than lip service to good governance.

To borrow from a leading expert in this field - Prof Bob Garratt - "A fish rots from the head"!

The Demise of Enterprise…UK

Without apology I copy below a blog post from George Derbyshire of the NFEA - a thoughtful and questioning article on the demise of Enterprise UK.

I read about the forthcoming closure of Enterprise UK with some sadness. I, and NFEA, have been involved since its earliest days, when three or four people camped out in space borrowed from the CBI in Centrepoint. Indeed NFEA director Sally Agass acted as interim Chief Executive on one occasion.

The organisation has some energetic and creative people and they can be proud of their achievements. Enterprise Week has certainly been worthwhile, as has Enterprising Britain (in which Enterprise Furness and NWES distinguished themselves.) I wish them all well in the future.

But of course Enterprise UK fell into the trap we advise all our clients about - it was over dependent on one source of funding. It only had one client and once that tap was turned off, it had nowhere to go. And the business organisations who make up its Board can’t be expected to take up the slack.

Indeed it could be regarded simply as an outsourced part of the operations of BIS.

I simply don’t understand why the previous Government felt it right to set up new organisations to carry out its wishes everytime it had a bright idea. All it did was create new bodies which inevitably had their own overheads and administrative burdens to carry, had no long term sustainability and which ran the risk of getting in the way of existing and more established organisations.

It would have been better all round to tap into the expertise of those of us who were already active on the ground, who had the experience, stability and dare I say low overheads to deliver the goods. This way the Government would have achieved its objectives and even strengthened the existing infrastructure.

But there is a wider point to be made. This is simply one example of the way the enterprise structure is being dismantled. The RDAs and BusinessLink are in wind-down mode and every week we are hearing about more closed programmes and business advisers being declared redundant. Third sector, voluntary and social enterprise providers - and enterprise agencies are just one part of a wide and deep network of providers - are not immune from this. The shockwaves are spreading widely across the business support pond.

The irony is that these independent organisations make up the Big Society that Mr Cameron is urging upon us - dedicated people, mission-driven, locally-based, quick on their feet and committed to their local communities. At a time when the state of the economy is causing renewed concerns, when unemployment is trending upwards and public sector job losses are being declared daily the need for a vigorous enterprise sector is, I’d have thought, obvious. We can help start new businesses, we can keep people away from unemployment, we can help others to move away from benefits and we can help businesses grow. But that needs a effective and comprehensive business support strategy. Wasn’t it a famous Conservative prime minister who growled “Give us the tools and we will finish the job!”?

How to make a LEP work.

As we progress into 2011 more detail is leaking out as to how LEP's will be structured. There is an amazing amount of goodwill from the business community towards LEPs and it is vital that those who are responsible for the governance take advantage before the enthusiasm wanes.

I have attended a variety of events around LEPs over the last 3 months and I believe that it is critical that each LEP outlines its objectives very early on. Having sat on a variety of Boards and Quangos over the years the common problem which they all face is not living up to expectations. This results from a wide ranging set of objectives which are designed to pacify vocal opinion at the beginning but become a heavy weight around the neck as the reality of delivery differs from the grand ambitions.

A good example of this happened this week at a meeting in Norwich regarding the "New Anglia" LEP. The presentations were tight with the shadow board indicating a concentration on the tourism and energy industries. Now it is arguable if these are the correct priorities but I commend the principle of concentrating on areas where an effect can be seen and measured. The question and answer session however turned into a "What about..." inquisition. The competing demands of the cultural, creative etc industries were all raised and whilst they are important the LEP with limited resources cannot make a difference across the board.

To me it is vital that the LEP concentrates its activities in a few key areas where they can really make an immediate difference. If not they will fail and the business goodwill will evaporate very quickly. It will be interesting to see which argument wins out...a focused narrow approach or a wide "everything to all men" one.

As an aside it is clear that financial resources will be sparse so how about this for one way to make a real difference? All economic officers, departments and budgets in every local authority in the LEP area should be given to the LEP to administer. In Norfolk and Suffolk I would estimate that this would equate to 100 staff and over £5m. It would then be for the LEP to decide on how many staff are required and what they do with the budget. Radical but I would bet that it would make a real difference. Business could then be tasked to match this sum. Perhaps via 1% extra on rates or by a "tithe" on representative movements which want a place on the Board such as Chambers, FSB,IOD etc. Say 10% of membership fees? Match this with UK government or ERDF funds and the budget is transformational.

I would not bet on the above happening but if a LEP just replaces an RDA or LSP it will become a toothless talking shop. If it does business differently such as above it could really become a powerhouse for economic good.

Tell the truth or what people want to hear?

I have always struggled with the concept of telling people what they want to hear rather than what you perceive to be the truth. As a result I am sure that NWES has lost some business as I refuse to compromise just to gain a contract. Is this the right way to do business? Many will call me a fool however my personal beliefs are what drives the company and whilst I will never be highly popular by "telling it straight" I do hope that I am highly respected.

In business there are two ways to look at the gaining of customers - a short term, transactional approach or a long term relationship strategy. I prefer the latter which means having an honest and open relationship with the customer. Often this means telling them NOT to buy your product or service and sometimes even going to a competitor who may be better placed to deliver a solution to that particular need. In a percentage of cases you will lose the business completely - especially with those individuals who are uncomfortable with the bare honesty. However the majority will respect your candour and the relationship will be strengthened. If there is no trust then there is no long term relationship.

In working with new and existing businesses we strive to always be independant and impartial with our advice - our reputation is too important to us to compromise it with short term "quick fixes".

In my experience however in working with government and major corporates they often want to hear platitudes which reinforce their held view rather than alternative solutions. As I have said before process is more important that outcome in many such cases. This is why we have seen the amazing growth in some firms who win major government contracts and then underperform - usually without sanction. A good example is with New Deal where recent research has indicated that it cost over £30,000 for every new job created. Compare this to NWES where for 10% of that amount we set up new businesses which are proven to be more sustainable than average and who also employ others. Are we asked to the top table to explain how we can do this? No. The truth is someties unpalatable and uncomfortable when it does not sit within preconceived viewpoints.

I live in hope that one day honesty and values are as highly prized as profit.

Fond farewell or good riddance to Business Link?

So at long last the worst guarded secret in Whitehall is out in the open - Business Links will cease to be in November this year. I will wait until nearer the time before I pass my judgement on the demise but it is appropriate to look at the policies and services which are likely to replace BL.

We will see a new website which is to be welcomed. The current site has a wealth of information available albeit that it is sometimes difficult to find and moves to improve the navigation are to be welcomed. A telephone contact centre to back up the website is interesting as it would appear to be (from the latest BIS paper) that the individuals will only be there to access the website for those not digitally connected. I have concerns that the helpline could have very low satisfaction levels if they cannot deal effectively with client queries. This is not a directory enquiries type of operation and I will bet that the majority of callers will be looking for bespoke answers to individual questions not some form of "information dump". No doubt we will learn more as time goes on but I am not inspired at the moment.

The Enterprise Allowance has been resurrected which I am very pleased about as I raised this in a meeting with Mark Prisk some 3 years ago. The radio debate on the Jeremy Vine show on Wednesday 5 January was very interesting with many examples of successful businesses who started out in the 1980's thanks to EA. However the overriding fact to emerge was that nearly every caller ranked the help and support that they received from Enterprise Agencies as just as important if not more so than the funding. This is the missing element in the new EA. Mr Prisk it is not too late to put a great value for money support package in place to complement this welcome initiative.

I am dismayed at the hype surrounding the "mentor" bank which claims to have 40,000 mentors available. Firstly are these new mentors or just a restating of what is already out there with respected organisations such as the Princes Trust? Secondly for a mentor relationship to work it needs to be "matched" so that the right person is linked with the correct business. Without this there will be hundreds of horror stories which will blow any credibility that this scheme has. Finally who is monitoring the quality of the mentors? Will they be qualified or is it a free for all with unscrupulous individuals looking at personal gain through the relationships? I totally support mentoring being a mentor myself but it is not as easy as some people in government seem to think. When I see 40,000 individuals and their details on a website then I will believe the numbers but until then I am very wary.

The future of this country is indeed in the hands of an enterprising minority. I would like all support aimed at starting up new businesses with a good foundation and then allowing the faster growth companies to buy in support as needed - no more picking winners please. Just look back to the 1980's with the greatest jump in entrepreneurship seen in any western country - learn and repeat and we can look forward to another era of great prosperity.

From Public to Private

The government has made it clear that it sees a reduction in the public sector payroll to be a priority as it seeks to balance the books. The jury is out as to the real impact which will be seen as anecdotal evidence is that whilst there will be some job losses cuts are being made in third party contracts first. In the short term this will work but as "easy" cuts become exhausted there will have to be some overdue hard but necessary decisions made in town halls and government departments the length and breadth of the country.

So what is to become of those individuals deemed surplus to the public purse? Some will take the opportunity to grasp the overly generous redundancy/early retirement payments available and leave the job market, others will be moved "lock, stock and barrel" into the private sector as an outsourced service and the remainder will be at the mercy of the private sector job market.

What are the prospects for these folks - many of whom have only known the protective arms of the public employer? I would argue that for many the prospects are very good - if they can change their mindset and embrace wholeheartedly the opportunities afforded by private sector employers. From observation the main difference between the private and public sectors is that the private sector is focused on the outcome whereas the public sector places a greater emphasis on the process.

Many public sector employees have good transferable skills which can be of benefit to the dynamic employer. The challenge is for those individuals to identify and convey those skills more effectively. Most employers do not see experience in the public sector as important so a reliance on a CV which fails to explain how this can benefit a company are destined to fail. A change of attitude and an understanding of what is important to the private sector is important. A repositioning, demonstrating commercial awareness and how they present themselves, will reap its rewards - however speed is of the essence as there is a limit to the capacity of the private sector to soak up the surplus workforce.

For some this is a gilt edged opportunity to start up in business for themselves. It may be in a related area such as property management or a completely new start in the hospitality industry for example. Either way this is a real win for the individual and the economy as these new businesses will go on to create new jobs themselves. For me the best way that the government can ease the transition for public sector employees who lose their jobs is by investing in a bespoke public sector targeted business start up programme. This is surely what the Regional Growth Fund is designed for and it will be interesting to see if our political leaders have the foresight to invest in a programme which will enhance the wider economy for years to come.

CSR - what does it mean for Norfolk?

For those of you expecting the CSR to bring some clarity to the future of business support, I am sorry, but hardly surprised, that you've been disappointed. In the same way that cabinet ministers have been scrambling over the last month or two to defend their departmental budgets, we shall now have a scramble within the departments as junior ministers and civil servants join the internal fray. Expect it to be Christmas before there is any break in the fog.



We do know some things however: EEDA are under sentence of death by March 2012 and are winding down their activities rapidly and will take the Business Link contract with them. We can expect a revised and more user friendly Business Link website and smart money is on the creation of a supporting call centre. There is talk of a network of growth hubs to provide more specialist support to growing businesses and exploit university research but the detail is glaring in its omission. The more traditional support so valued by start up and early stage businesses in the form of individual advice and business planning training looks in severe danger despite David Cameron calling for an age of entrepreneurship. I do not favour government support for established businesses as they should be in a position to pay for help but for those people that the country needs to set up their own business there looks as though there will be a vacuum which it is unlikely to be filled to any great degree. This is short sighted as encouraging enterprise is vital to our future – especially in areas such as Norfolk where we cannot rely on inward investment to any great degree and have a real need to “grow our own” entrepreneurs.



There has been some talk of mentoring and this is something that we value highly but it is not a panacea and it is not cost free. Volunteers need to be trained and managed, mentees need to be screened and matched. And that's a professional job. Which leads us on to the Enterprise Allowance – something for which I have been lobbying for the last four years, details are slow to emerge but it would be a disaster if this was merely an add-on to some multimillion welfare to work contract given to a multinational outsourcing organisation. If you want to make a difference, you have to get local organisations to engage with local people.



And talking of local, the LEP story is yet to unfold. We await the White Paper which will tell us more, I hope, about their role and responsibilities and whether the Regional Growth Fund can support enterprise activities. Not least if the East of England can expect to receive anything other than a token amount with the majority of funding going to the North East and North West. With funding for local authorities due to decrease substantially, the end of government funded streams such as LEGI which has had a major positive effect in Norwich and Great Yarmouth and the EEDA funded “Encouraging Economic Participation” finishing in March the immediate outlook is not good. With no county strategy for encouraging enterprise and start up businesses Norfolk needs to implement radical and far reaching policies in the short term if it is not to fall further behind its competitors.



The White Paper on Sub National Growth is due for publication on 28 October. It is required bedtime reading for local policy makers who need to elevate ambition and build on the latent potential evident in our Fine County

Work experience - to be endured or enjoyed?

It is interesting to note a subtle debate which is bubbling under the radar relating to the subject of do people learn through experience or via specific interventions such as training courses etc. As with most debates of this nature I suggest that the answer lies somewhere in between the two extremes but I would like to focus on one element which is close to my heart - work experience.

I do tend to believe more in that behaviour is dictated by experience and thus work experience in my view is vital for young people. Unfortunately in too many cases work experience is treated in a "block" fashion with it being seen as a logistics exercise by schools, businesses and local authorities rather than a vital step in encouraging young people and explaining the world of work in a manner designed to inspire.

Of course there are numerous examples of good practice and work experience placements which have led to permanent jobs but for many young people work experience is an event to be endured rather than savoured.

If we think back in our own lives there will be some episodes which stand out as life changing in their impact and often these are based around an inspiring individual be it teacher, mentor or boss. If you ask successful leaders how they have learnt through their career they will often mention their first work experience. It could have been a school placement or indeed their own after school or holiday job but in most cases the experience sticks and acts as a powerful motivator either to be replicated or avoided!

I want to see every work placement tailored to a students needs and devised to inspire. At the time of work experience our young people are at an impressionable age and memories - good or bad - will stick for life. The influence of people at work will be remembered and it is important that businesses understand this and place young people with their most inspiring staff members - at whatever level in the company.

Work can come as a shock; the punctuality, dress, pressure and schedules will be totally different from what they are used to at school and so each young person should be adequately briefed by their teachers prior to starting and all experiences logged to help improve future placements. As I have mentioned this is not the norm due a wide variety of factors but we must never lose sight of why young people attend school - to prepare them for work.

We need to build a much stronger partnership between the world of work and academia, if we do that then our future will be in good hands.

Does the public sector really get Economic Development?

With the spending review close upon us and an overwhelming need for fresh thinking in the public sector plain to anyone not within it the unanswered question is do the various bodies know what it is that they are trying to achieve?

Having been in enterprise support for almost 14 years I think that I have seen most of the various strategies designed to help boost enterprise. Unfortunately I am not impressed with much that I see. Economic Development is approached in an academic way more akin to a Planning Department than one designed to stimulate enterprising activity in an area. Most published aims and objectives in the local authority arena are identikit and fail the "Tippex test" - white out the county/district name and put in any other.

If there is no differentiation in tactics then the results will be broadly similar and yet it is almost impossible to get the relevant people to understand this. There are some notable exceptions however who have attempted a different approach and been regarded with a better than average result but these forward thinking authorities are all too uncommon - Suffolk County Council take a bow.

To me an Economic Development department should be tasked to understand what it is that motivates enterprise in their patch, find out where there is a real strength, seek to isolate local weaknesses and produce, tender and contract for an appropriate solution to their bespoke needs. Not radical perhaps but rarely seen. What is second nature in the private sector is anathema to the public sector. The fear of being different and the knowledge that there is no sanction for failure leads to a spiral of waste both in monetary terms and of opportunity.

So what should happen? We hear much about the Big Society which in turn must lead to Smaller Government. This is to be applauded but for this to happen we need Council officers and members with vision and backbone to make real changes. I want to see local authorities move away from the "transactional" approach currently seen to a "relationship" approach whereby trusted partners in the private sector are fully engaged to make a long term aim become reality. This a a real "win, win" situation but not widespread practice.

What we currently see in this sector are unrelated tender opportunities not forming any part of a long term strategy but instead driven by budget availability which are often won my what I would term as the "mercenary" tendency who write good bids, move in on an area but deliver appalling results before hoodwinking the next gullible authority elsewhere in the country. The time is ripe for long term relationships to be made by local authorities with organisations who have a great track record and will be around for the duration of the journey. I know of so many examples of tenders being won by companies who have failed in previous contracts but "due diligence" is not a phrase that I see when councils award contracts!

Where we see good practice the results follow and these are the areas performing better than everywhere else. The converse is also true; perhaps the only way to change the results is to change the people and methods - same activity = same results.

At NWES our mantra is that we always deliver and that is exactly what we do 100% of the time and yet past delivery is rarely a high scoring aspect in any tender. Make economic officers responsible for economic growth and if they do not deliver change them - this is what happens in the private sector and until it happens in the public sector my hopes are not high for the very areas that need innovative intervention.

Head up not Head down

I recently attended the NFEA and PROWESS conferences which were held back to back in Nottingham. This is possibly the major event for our industry and sees an interesting programme of speakers with the chance to talk to other leading lights from the industry.

What continually amazes me is the fact that many agencies fail to attend. According to sources at the NFEA the excuses are varied and innovative! However a common theme of "I have not got the time" or "we cannot afford it" crop up all the time. I cannot understand this mindset. I am afraid that these are the very people who need to attend such events as they are clearly struggling in their individual businesses.

Whilst I am sure that it will not add to my popularity rating I feel that I must berate these people who are doing untold harm to the movement. The conferences are heavily subsidised and the costs of attending are minimal so the cost argument falls down straight away. The dates are well publicised in advance and so diary commitments should be minimal and thus the question of time management can only come down to disorganised CEOs.

It is no coincidence that the most successful agencies are perennial attendees at the conference. They have the wisdom & foresight to understand that expanding your network of contacts, learning new things, discussing plans with people in similar situations and gaining a greater understanding of the events dictating future government strategy far outweigh a £200 cost or day out of the office.

So what can be done to help these "Ostriches" take their heads out from the sand? Perhaps it needs a larger agency to "adopt" a smaller one and provide a bursary to enable the CEO to attend. A more proactive stance amongst regional members to exert some moral persuasion would help as would a personal contact from the NFEA CEO to every agency who has not attended. If we wish to be seen to be helping all then we need to be proactive and not just rely upon the dwindling number of forward thinking agencies.

I am a passionate advocate of learning, swapping good practice and networking to improve NWES and our growth and reach is testament to that success. Perhaps now is the time to hold to account those Chairmen of agencies which are under performing - shape up or ship out? Radical perhaps but difficult times call for radical solutions. We need to be relevant for 2010 and beyond and not living back in the 1980s.

So strike out a couple of days in the diary for September 2011 and take some time out to work on the business instead of working in the business - that's what a good CEO does.

What makes a good Chief Executive?

A few random thoughts on what I think it takes to be a good leader. Not an exhaustive list and one to which I will continue to add and adapt. A good leader..

1. Is punctual
2. Knows the difference between important and urgent
3. Never complains that they do not have enough time
4. Does what is necessary even if it courts unpopularity
5. Accepts responsibility
6. Is always courteous
7. Says "Hello" to all staff every day
8. Thanks people as a matter of course
9. Talks to people "face to face"
10. Never checks their phone in the middle of a conversation
11. Is determined to be the best in their industry
12. Respects different opinions
13. Does not accept excuses
14. Understands that every system can be improved
15. Leads through attitude, skill and competence not by job title
16. Helps others in their careers
17. Sticks to their values come what may
18. Always has a "Plan B"
19. Knows that you are only as good as your last decision
20.Realises that paper qualifications mean nothing unless they can be converted into appropriate action
21. Learns from others both older and younger
22. Respects wisdom
23. Harnesses technology as a tool not a master
24. Knows the difference between "dress down" and "scruffy"
25. ...."one of the gang" and "embarrassing"
26. ...."in confidence" and "gossip"
27. knows that it is harder to build than destroy
28. Knows when to say "sorry"
29. Can laugh
30. Believes in themselves
31. Makes mistakes but learns from them
32. Takes inspiration from a wide variety of sources
33. Isn't afraid to copy as well as innovate
34. understands that there is no destination - business is a constant journey
35. Puts things in perspective
36. Knows that outputs, figures etc are a means to an end not the end itself
37. Understands that businesses is a cycle - there will be bad times as well as good
38. Can celebrate success
39. Is not afraid of odd numbered lists!

Becoming a Mentor

Perhaps the most undervalued and under utilised asset in business today is experience. Experience helps you to make good decisions and is usually gained by making bad ones.

Too often in business the benefit of this experience is lost and not shared either within or outside of the company. This is an expensive mistake. There are many ways in which this knowledge can be harvested to help others and one such method is via mentoring.

Academics have spent many years and millions of words attempting to define mentoring and the difference between that and coaching and counselling. To the business this is of little relevance – it is the harnessing of experience which can give a business an edge over the competition that matters.

The word mentor comes from a character in Homer’s Odyssey taken over by the goddess Athena to guide a young Telemachus in his time of difficulty. In many ways this sums up the essence of a mentoring relationship. It is a helpful partnership based upon mutual trust and respect.

A mentor is a guide who can help a mentee to find correct solutions to both business problems and career issues. To work, the mentor will have both an empathy with the mentee and their business and will have encountered similar business issues in their professional life.

It is not the role of a mentor to run the mentees business, make decisions for them or line manage them. Rather that they help the mentee believe in themselves, question and challenge whilst providing guidance and encouragement. It is an excellent medium for exploring new ideas in confidence.

So, what should you look for in a good mentoring relationship?

Experience: usually the mentor is older but not always. I know of one person in his 20’s that mentors older people on the ways of the online world.

Availability: it may be great having a famous or successful person to mentor you but if they are not available to you when needed it defeats the purpose.

Focus: you need a mentor who is able to not only focus on you and what you would like to achieve, but also help you focus.

Belief: someone who believes in your potential; if they are not sold on you then they will not put in all of their effort.

Open minded: a mentor who will allow you to progress in a way that you need to progress, not necessarily in the way that they would prefer.

Positive: someone who is positive and helps keep you positive, to help you up when you fall and who cares about your success as much as you do.

Many successful business people have several mentors throughout their career helping them at different stages along the way. Sadly not all of them then act as mentors themselves. Being a mentor is a rewarding experience and should be a freely given service during a working life – not just when you are retired. If you are interested in becoming a mentor or having a mentor work with you then contact organisations such as NWES or Princes Trust who can act as impartial matching brokers.

The secret of success!

"Sir, what is the secret of your success" a young man asked a renowned entrepreneur

"Two words" he replied

"Sir, what are those words"

"Right decisions"

"And how do you make right decisions?"

"One word"

"And what is that"

"Experience"

"And how do you get experience?"

"Two words"

"What are they"

"Wrong decisions"

Local Enterprise Partnerships - friend or foe?

From an external perspective it would seem that the local authority network is focused solely on the forthcoming local enterprise partnership discussions (LEPs) and how it may impact on their control of services.

Since the notice from the government that Regional Development Agencies - and also regional government offices - are to be abolished there has been little talk of anything other than LEPs. Reaction varies from authorities caught like rabbits in headlights awaiting "further guidance" to those who see it as a way to wrest power and control. The government has been specific in that they are seeking views from local areas and will not be issuing more guidance and yet some authorities cling on to the hope of details emerging telling them what they have to do just like a toddler with a comfort blanket. It is very disappointing that officers have become so used to "obeying orders" that many seem to have lost the ability to think for themselves.

At the other end of the spectrum the opportunistic see this as a chance to grab the initiative (and power) and are seeking to overturn the "old order". I have had so many conversations with officers and members that I am dizzy with the myriad of solutions being touted around.

I am realistic enough to understand that the decisions on what the boundaries may be will be decided by politicians. Businesses have neither the time nor inclination to spend hour after hour arguing over lines on a map.

So what seems to be emerging? At this stage it is clear that upper level authorities see boundaries concurrent with theirs and that it is a chance to wrest more control for themselves. On the whole districts are disgruntled and are seeking different pairings which appear to have greater resonance with the governments vision of local economic areas with a degree of common issues. Worryingly there is little in the way of original thinking and exciting and different ideas being discussed.

In the East of England we suffer from a lack of a regional identity with places like Herrtfordshire having little in common with Norfolk for example. This should be the catalyst for original thinking and LEPs emerging which do not follow simple county lines. For example Great Yarmouth and Lowestoft are reliant on each other (even if both authorities refuse to acknowledge that) and have more in common than they do with say Ipswich and Kings Lynn and yet county lines preclude real engagement. Similarly the coastal strip from Kings Lynn to Harwich shares ports to tourism, energy to erosion and would make a very interesting LEP which could be unique - thus increasing the chance of accessing funding. In the other direction a LEP based on Peterborough and including the fens, south lincs, west norfolk and rural cambridgeshire has much to commend it.

So where does business fit in? Somewhere down the line in all honesty. There has been minimal discussion with real businesses with local authorities believing that if they consult with Chambers of Commerce, the IOD and FSB that they have ticked that box. We support - and are members of - each of these organisations but they are not business. We need CEOs and Chairmen of businesses to sit on LEPs if they are to be anything other than talking shops. I even got hold of one internal council document which suggested that despite government instruction that a LEP must have local authority majority or they would be "undemocratic" and power may be ceded to "unaccountable" individuals! I know who I would rather have running my budgets!

This is a great opportunity to shape local plans over the next few years and yet I wonder if I am being too cynical in believing that little will change. I want a strong local economy based on enterprise and cutting through the ridiculous bureaucracy which stops most business people from becoming councillors. I hope that LEPs become local powerhouses for change but based on what I have seen and heard so far my hopes are not that high.