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.

So what next for Business Link?

A really interesting article appeared in the Sunday Times on 6 June 2010. This was an interview with Mark Prisk the small firms minister who began to expand on thoughts first raised in opposition. With the cost of BL estimated at £190m pa can there be significant savings? Well for me the answer is a resounding YES! We have a great opportunity to radically reform business support in this country and my ideas would save c75% of the current BL budget.

The changes which have been mooted to the BL structure are to be welcomed. We do have a good relationship with BL as their main deliverers but we are keen to provide start up support directly once more and return to the enterprising economy last seen some 25 years ago. We are clear in our vision which has been consistent for many years:

- Information can be provided via an improved (over the already good) BL national website. This should be the first point of call for information on a number of business related topics and can perform a similar role to that of the universally acclaimed BBC site. This can be administered nationally under contract to an experienced website company. The budget for this can be agreed but should not be more than say 3% of the current national BL funding of £190m
- Those businesses which have reached a certain stage in their development, say 3 years, should be in a position to source and pay for any business support required. There may be exceptions at key stages such as first export, where generic support can be provided via the BL website and dedicated country export counsellors available via telephone, but in general the rule should be to let the market determine the support required. The budget for this is unlikely to exceed say 5% of the current BL funding.
- Start up support is absolutely vital in an era where the job market is likely to remain depressed for some time. Whilst support for unemployed people will be dealt with under the DWP programmes there is still a need for help for those who wish to leave the world of paid employment and seek self employment. These people are important as they leave vacancies to be filled and will in turn create employment via their own businesses. This is one element often overlooked in “self employment programmes” that on average every business created with help from an enterprise agency such as NWES will in turn create 2 new jobs. Currently BL pays lip service to start up support with a very low percentage of their funding going to support start up business. We would strongly support a separate start up programme to be delivered directly by the enterprise agency network for any individual who is not covered by the DWP programme. This could be delivered for approximately 10% of the current BL budget.
- There is a place for a national “enterprise in education” programme which will stimulate young people to harness their latent enterprising talent. This would require much discussion to agree on an acceptable way forward but should be a consideration for implementation during the lifetime of a parliament. Using our own experience this can be delivered in all secondary schools across the country for 5% of the BL budget.
- Beyond this we would suggest that there is little that should remain from the current BL offer. Therefore there are potential savings of 75% of the £190m currently spent - £140m. In turn we believe that the offer will be more transparent, that there will be little mourning in the business community beyond those with a vested interest, the savings in administration cots and bureaucracy in organisations such as RDA’s, and BIS could in turn be added to the cost savings.

Radical perhaps but now is the time to be bold - its over to you minister!

I thought that I would post a blog entry by a judge for the "Enterprising Britain" competition who visited us in Lowestoft. As you can see he was impressed by what he saw and we will know how successful we have been at the national awards in October!

Enterprising Britain: A Judge's PerspectiveBy Maurice Helfgott, Founder of Amery Capital Ltd.Published Monday, 20 July, 2009 - 18:53

As founder of investment and advisory firm, Amery Capital , whose investments include Long Tall Sally, I was appointed a judge in this year’s Enterprising Britain competition has been a fantastic experience.
I have now completed both of my judging visits and each has highlighted how passion and dedication can transform lives and communities. It is great to see projects demonstrating how working in partnership can create new and exciting opportunities.
Each year, Enterprising Britain seeks out the most enterprising place in the UK, somewhere which has improved the local climate for business by creating opportunities for residents to be enterprising.
In these tough economic times, the dedication and vision of the people involved in these projects is a real inspiration. Entrepreneurship is key to our journey out of the recession and will be crucial in building a strong economy for the future.
The project I visited in the South West is run by The University of Plymouth, which is taking a leading role in the area’s social, economic and cultural development. It is fully engaged and working in partnership with a variety of organisations and agencies across the city to ensure the programmes developed are based on real need and are complimentary to partner activity. The university has developed a wide range of projects targeted to create an impact and raise levels of aspiration and quality of life.
Particularly interesting in Plymouth was a groundbreaking new partnership between the university and the Royal Government of Bahrain. It is a great example of private sector investment in the project and signals the creation of exciting international links and potential investment in Plymouth’s science and technology sectors. It is anticipated that the partnership will significantly boost the city’s financial and knowledge economies and its promotion of the vast opportunities available is definitely something I think others can learn from.

In the East of England NWES, a local enterprise agency in Lowestoft, was set up to reduce disadvantage by encouraging enterprising activity and self employment. Concentrating predominantly on people who are long term unemployed and facing barriers to work, its aim is to increase the number of business start-ups within the town by offering support, training, mentoring and provision of finance and flexible workspace.
The jewel in the crown in Lowestoft is the newly opened OrbisEnergy centre – an £8.7million investment designed to capitalise on the renewable energy sector. Amongst many other projects, the organisation gave £3million of its own money to fund the Lowestoft Enterprise Park, transforming a derelict industrial area into a thriving community of small businesses. NWES is about finding ways to give real benefits to both individuals and the community so that it is no longer dependant on just a few major employers, but offers a range of employment opportunities throughout the area.
Both projects I visited have successfully created jobs, reduced unemployment and attracted inward investment. The knowledge and experience they have will prove a vital aid for stimulating economic recovery and I wish them the best of luck in the competition.

NWES is proud to be the Eastern area representative in this years competition and are happy to share our experience with any other "enterprising place".

Who bears the brunt of the recession?

Over the last few weeks there appear to be an increased level in the number of stories about the private sector bearing the brunt of the recession whilst the public sector sails on regardless. It is an interesting concept and one which deserves significant time expended on it by the very best political brains for the good of the country.

Is it true? Looking at the facts it is clear that the cuts in jobs and expenditure is falling almost entirely on the private sector. Public sector employment has risen sharply over the last 10 years and shows little sign of contracting whilst the rise in unemployment can be attributed to private sector cutbacks. In general though it is fair to point out that the public sector often lags behind the private sector as it is difficult to implement change and is subject to political influence rather than economic reality.

We are entering a different climate, one which many people are too young to remember -austerity. The post war mentality of save, mend and make do lasted with us until the early 1980's and then an era of spending has changed the way that we live. I still live by a mantra that if I cannot buy it with my own money then I do not buy it. It may be out of favour as a philosophy and yet I have no money worries and live within my means! In corporate life however we need to learn the value of money once again. Political spin where all spending is "investment" needs to be stopped. Capital programmes are investment but current spending is exactly that - spending.

If we do not cut public expenditure sharply then we will return to an era more akin to "Life on Mars" with record unemployment, industrial unrest and appalling public services. We hear that cuts in public spending means a cut in services. This is untrue. Looking at productivity levels in the public and private sector over recent years we see a gap of about 20% - indeed in recent years public sector productivity has fallen!

The cuts do not need to be across the whole spectrum but the increase in productivity does. Thus if a department such as Health is protected from cuts then that is in return for an increase in productivity. In this department alone the waste is enormous and simple business techniques could save billions of pounds which could result in more being done for the sick and vulnerable.

I would like to see ALL public authorities conducting an exercise whereby every service is investigated and is contracted out to the private, social or voluntary sector unless it can be proven that to do so would be more expensive or result in a worse service. Waste would soon be stripped out, creativity and dynamism would result and I believe that we would get a better service for a lower cost. Eventually this would lead to more jobs, lower taxes and an improved social structure.

So will this happen? Maybe, but slowly, as it appears that politicians believe that to articulate this would lose votes. I am not sure that is true but we need a strong leader prepared to do the right thing rather than the vote winning appeasement.

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?

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.