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Hertfordshire
SG1 2DX
Copyright: 2009 Business Independent Ltd
ISSN 1754-3096
All rights reserved. No part of this publication may be
reproduced, stored in a retrieval system, or transmitted
in any form or by any means without the prior consent
of the publishers. The views expressed in any of the
Business Independent series of regional magazines are
not necessarily the views of the publishers Business In-
dependent Ltd. Whilst Capital Business Media Ltd. has
made every effort to ensure the accuracy of the infor-
mation contained in this publication, neither they nor
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sional advisors where appropriate.
35 11
www.businessindependent.co.uk | 3
NEWS
4 | www.businessindependent.co.uk
NEWS
Herts small
business award
2010 launch
The FSB Hertfordshire Small Business “This is an opportunity - make no mistake
Awards enter their second year with about it - to assess your business and its
the official launch this coming January. strengths and position it for public acknowl-
Once again the initiative, sponsored by edgement and the acclaim of your fellow en-
companies throughout the county, is dedi- trepreneurs in Hertfordshire.”
cated to the success of small businesses, Entry forms should be on the FSB website
significant since in the UK more than 90% of www.fsb.org.uk from early January.
companies employ less than 50 people. The finals will be held on May 13, 2010 at
As the FSB’s Helen Armstrong comments: Tewin Bury Farm near Welwyn Garden City.
www.businessindependent.co.uk | 5
NEWS
6 | www.businessindependent.co.uk
NEWS
Harpenden entrepreneur
wins franchise award
Harpenden TaxAssist accountant Mark
Fordham has been named bronze win-
ner of the 2009 British Franchise Associ-
ation/HSBC Franchisee of the Year
Awards.
Mark impressed the judges by demonstrating
how he had achieved success in spite of chal-
lenging times. In fact since acquiring the St Al-
bans branch he has developed one of the
largest and most successful practices in the net-
work. To this end he has increased his product
portfolio and expanded his franchise territory to
include Hemel Hempstead and nearby areas.
This has been backed by heavy investment in
infrastructure and state-of-the-art facilities.
As HSBC’s Head of Franchising, Cathryn
Hayes, commented: “Judging these awards is
always a difficult task but we felt Mark’s story is
testament to the franchise model working at its
best. He has demonstrated drive and commit-
ment to make his business a success, working
closely with the franchisor and investing in staff
and premises.”
The awards, sponsored by HSBC Bank and
Mark Fordham seen here receiving his prize at this month’s award ceremony held at the ICC in Birmingham.
Express Newspapers, celebrate the UK ’s best
From l/r: Sir Bernard Ingham (BFA President), Cathryn Hayes (Head of Franchising HSBC), Mark Fordham (Tax-
performing franchisees in an industry now worth Assist Accountants), Shelley Nadler (Field Fisher Waterhouse LLP), Kieron Summerhayes (Classified Advertising
an annual £11.4bn to the economy. Controller, Express Newspapers) and Brian Smart (Director General BFA).
STANLEY REACHES
FOR THE SKY
www.businessindependent.co.uk | 7
NEWS
Training triumphs
North Hertfordshire College and The
Consortium for Business have been
named as the East of England’s Train
to Gain Provider of the Year.
In spite of the recession they have contin-
ued to grow the number starting on the gov-
ernment’s Train to Gain scheme - up 75% on
2007/08 levels with success rates of 83%.
Robust processes combined with support and
development of consortium members and
sharing best practice has enabled a growth in
employees achieving qualifications of 62%.
North Hertfordshire College is the lead partner
in the Hertfordshire Train to Gain Consortium
covering NVQ delivery in the workplace in
Bedfordshire, Hertfordshire, Cambridgeshire
and Essex. This allows the consortium to offer
a huge range of qualifications covering most
sectors.
Caroline Neville, Regional Director for the
Learning and Skills Council East of England
recently presented the award to Fintan Dono-
hue, chief executive and principal of North From l/r: Karen Kelly (LSC), Jayne Henderson (HRC), David Neal (The Consortium for Business), Caroline
Hertfordshire College, and said: “The consor- Neville (Regional Director for the LSC East of England), Fintan Donohue (Chief Executive and Principal of North
Hertfordshire College), Gail Brench (LSC), Bev Jones (The Consortium for Business), Signe Sutherland (North
tium has been chosen to receive this award in Hertfordshire College) AND Mark Pike (Ridgemond Training).
recognition of its outstanding performance
and responsiveness to the needs of employ- Fintan, accepting the award added: “This come a recognised Centre of Excellence for
ers throughout the academic year. award means a lot to North Hertfordshire Col- training and the outstanding success rates are
“Feedback from skills brokers has been lege and its excellent partners. Two years ago, a testimony to the quality of providers that
consistently positive with the consortium with support from the LSC, we committed to make up the Consortium. This award will give
praised for the responsive and dynamic way major investment in our employer responsive all consortium members a strong incentive to
they manage enquiries and keep them up- capacity, which has paid off. do even better in the future. We hope to wel-
dated.” “Our Goldsmith Centre for Business has be- come more employers as their training partner.
8 | www.businessindependent.co.uk
NEWS
New
appointment
at CMC to
move forward
dragon
to deliver the CMC brand in Hertford-
shire from his base in Harpenden.
As Wayne commented: "When I ran my
own business, there were tough times when I
looked around for business advice. All that
was available to me were professional advis-
ers who were not entrepreneurs, were very
expensive and couldn't run a business them-
selves! If I'd found CMC at the time, I'd have
chosen them to help me. Working with CMC
This month will see the official launch that private sector businesses that fail should is a great way to make sure other entrepre-
not be bailed out and 48% want remuneration neurs don't make the same mistakes I did."
of the Entrepreneurs Board, a learning
to be capped for all public sector workers (in- While the main focus of Wayne's business
forum where like-minded business
cluding those in majority-owned businesses will be to help and advise SMEs in Watford
leaders can meet up to test ideas and
such as banks). and St Albans, he will also cover Hatfield,
investigate opportunities. Hemel Hempstead, Luton, Stevenage and
And in another ringing endorsement of the
The event, to be held in Watford, will also Welwyn. He is currently organising a series
perceived power of the entrepreneur, more
highlight the findings of new research which of events in the region for March and April
than seven in 10 people definitely (41%) or
examines public attitudes to entrepreneurs. 2010.
maybe (34%) want tax cuts to be given to
As successful businessman Peter Cordery,
start-ups and entrepreneurial businesses to
who will be heading up the new organisation
further stimulate the economy. As Brian
explains: “The survey shows that Britain’s
entrepreneurs have the business x-factor
needed to kick start the economy and pull the
Chernett, Founder of The Entrepreneurs
Board, added: “Entrepreneurs are vital to
SMUG OAK
Business Centre
recovery in the UK and the public understands
country out of recession.”
The study showed that 28% of those ques-
this. We should do everything possible to Office suites available
help entrepreneurs make their businesses
tioned think entrepreneurs are most likely to
more successful, whether it’s tax cuts or
from 150sq ft
have the most positive effect on bringing Situated in a rural environment with very
providing business support and guidance.
Britain out of recession over the next year, in convenient access to M25, M1 and M10. Ample
The Entrepreneurs Board is an extension of secure parking, free use of a boardroom. Two
comparison with 24% voting for the Govern-
proven leadership programmes that help lead- fitted kitchens, shower areas and CCTV.
ment. Large businesses were chosen by 13% (no agents fees)
ers learn from each other. Experiential busi-
of respondents and trades unions by just 3%.
Meanwhile some 45% of people surveyed
ness learning helps business owners learn by OAK PROPERTY RENTALS
‘doing’ and inspires them to achieve their ulti- for more information please call
feel that funding should be given to start-up
mate dreams while creating economic value 01923 894600
companies instead of supporting failing
for the country.” Or email: ohm@smugoak.co.uk
businesses. Nearly half of people (47%) agree
www.businessindependent.co.uk | 9
INTERVIEW
Life after
The Apprentice
Hannah Prevett talks to Apprentice winner
Michelle Dewberry about life post-Apprentice
and founding lifestyle portal, Chiconomise
N
o sooner have I stepped foot time for such DIY pursuits given the recent
through Michelle Dewberry’s launch of her new venture, Chiconomise, but
front door I’m ordered to take it’s good to see her practising what she
preaches.
off my shoes. Naturally, I abide and
“Chiconomise is my baby,” she smiles, at
gingerly follow the 2006 Apprentice
the mere mention of the start-up. “I came up
winner through her impeccably deco-
with the idea when I was living and working in
rated apartment and into the lounge. New York last year. I was reading daily lifestyle
Now I understand the ‘no shoes’ rule. This email, Daily Candy and they suggested a fabu-
room, like the others, is kitted out art deco lous hair salon to go to but it was $100. I
style, with loud, yet stylish, pink and black asked myself if I’d be able to afford a $100
wallpaper. Surfaces are scattered with pictures blow dry once a fortnight. Probably not. So I
of friends and family. Above, the book shelves started thinking, ‘wouldn’t it be nice if I could
are crammed with spare copies of her autobi- have the blow dry at a discount’,” she recalls.
ography Anything is Possible, poetry books And so Chiconomise was born. “I want to be
and business bibles. able to keep up the nice lifestyle, but without it
necessarily costing a lot of money.”
Staying grounded The timing of the project is no coincidence.
Across the room, Dewberry nestles herself Dewberry, known as the ‘Steel Pixie’ during
on a cream chaise longue, looking effortlessly her time on the BBC show, is tuning into the
chic in a black Diane von Furstenberg wrap needs of an increasingly cost-conscious soci-
dress. “When I got this chaise it was a real ety. “I am massively aware of the current eco-
wreck,” she admits. “I had to re-cover it, put nomic climate and while people are impacted
the legs on and I put all these studs at the and people are cautious about what they’re
arm,” she says proudly. Surprising that she has spending, girls will be girls and we want to
10 | www.businessindependent.co.uk
INTERVIEW
www.businessindependent.co.uk | 11
THE FESTIVE SEASON AHEAD
Christmas Menu
£14.95 two courses
£18.95 three courses
Including crackers and a welcome drink, prosecco!
********
Salad of smoked chicken with cherry tomato,
cucumber and crispy bacon
Goat’s cheese and pear puree with a
walnut dressing
Roasted tomato soup with basil pesto croutons
********
Traditional turkey with all the trimmings
Fillet of sea bass with new potatoes and
seasonal vegetables
Aubergine compote with cous cous and
a tomato sauce
********
Christmas pudding with brandy sauce
HATFIELD HEATH NR. BISHOP’S STORTFORD HERTFORDSHIRE CM22 7AS Orange and walnut tart with caramel ice cream
T: 01279 731 441 F: 01279 730 416 E: sales@downhall.co.uk Chocolate mousse
www.downhall.co.uk
12 | www.businessindependent.co.uk
THE FESTIVE SEASON AHEAD
make sure that it's a party for whether this involves public acco- you are reminded to watch
everyone, not just the A-team. lades or a handwritten note ac- your Ps and Qs at Christ-
Keep this point in mind if your knowledging an individual mas parties and in particu-
company has satellite offices, as employee's unique contribution lar, to refrain from drinking
well—the satellite offices deserve (tucked into a gift basket, per- too much. Just to play
Christmas parties that are on par haps?). Remember, too, that devil's advocate for a mo-
AFTER HOURS
with the parent company's cele-
bration.
Christmas party details become a
part of the office lore and com-
ment....The whole point of a
Christmas party is not to
Company Tradition. There's a pany tradition. see people's usual but-
lot to be said for the camaraderie Generosity. Since this is an op- toned-up selves but to
that develops among employees. portunity for the company to see them with their hair
Camaraderie, and the positive show its appreciation, err on the down for a change. What bet-
good feelings that come from it, side of generous and not cheap. ter agent for
can help propel a workplace be- A few extra pounds spent here go achieving this
yond the ordinary. How you treat a long way toward buying you objective than
your staff becomes a part of the some goodwill with your employ- alcohol? When
company's self-definition and tra- ees. I still think fondly of the you think of
dition, and the company Christ- bashes that Mr Murdoch and any large,
mas party is a piece of that. I Company would put on back in festive cele-
always think it's a good idea for my early days of employment— bration over
employers to err on the side of granted it was a city-based pub- the course
seeing employees at their best lishing company so the standards of human his-
and treating them accordingly. If may be different than say, a recy- tory, alcohol (or an-
you think that you employ stars, cling facility in Peoria, but the other intoxicating
they're going to want to live up to point is that a good party is no- agent) was almost al-
your assessment. ticed and appreciated by employ- ways involved.
People like to be appreciated
and acknowledged; find a way to
incorporate these values into your
AFTER HOURS
ees, and makes you feel that you
are a part of something special.
Alcohol. This is always such a
Now while I'm not
saying that you want to
encourage employees
company Christmas party, dicey topic: Everywhere you look, to tie one on, remem-
C H R I S T M A S DAY L U N C H Ch r i s t m a s
WIN £250
WORTH OF C e l eb ra t i o n s 200
A special day for all the family to share, with a superb, 4-
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We do all the work, so you get all the Ho, Ho, Ho!
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A special day for all the family to share, with a superb, 4-
WORTH OF
HIGH STREET VOUCHERS
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N U S ! Christmas menu
£25.00 children under 12 years
course traditional Christmas Day lunch with a gift for all!
with pancetta
Fresh Vegetable Tortellini shavings
with black olives, bell pepper and Parmesan shavings
T I V W SR
with a herb infused olive oil
with a herb
Plaice stuffed infused olive oil
with Crayfish
with a lemon chervil sauce
If you have any special dietary needs please do let us know Quality Hotel St Albans
234 London Road, St Albans, Herts. AL1 1JQ
Telephone: 01727 857858 Fax: 01727 855 666
Qu
Email: st.albans@quality-hotels.net www.businessindependent.co.uk | 13
www.stalbans-hotels.co.uk
THE FESTIVE SEASON AHEAD
www.businessindependent.co.uk | 15
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This approach allows us to be flexible in terms of budgets and timescales and gives our clients the
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We are passionate about the process of moving office, and improving working environments, and offer unique help and advice to our clients.
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16 | www.businessindependent.co.uk
LEGAL
Shareholder Blues
Recessions encourage business tension. This encourages investors and managers to see
if they are getting value for money. Shareholders sometimes disagree about the running
of the business. If you are a director, are you satisfied that you are running the business
in such a way as to not prejudice the shareholder's interest?
www.businessindependent.co.uk | 17
18 | www.businessindependent.co.uk
BUSINESS ADVICE
Guaranteeing your
reputation
I
n this digital age it is easier for us ning the customer’s heart and mind is all them the standard calendar or diary branded
to disseminate and obtain infor- about how they perceive you. with our company logo? There is a good
mation than ever before. Let me give you an example: There is a chance they won’t tell any story at all. There-
The Web means we have information con- story of an airline that launched a brand new fore, what value have you obtained? The an-
stantly at our fingertips. Meanwhile we are long distance route. On their maiden voyage swer is none.
communicating with each other all the time via the plane was stuck on the runway for four-
email, mobiles and text messaging.” Word of teen hours. At that point what story would the So think of the story.
Mouth” has always been powerful, yet as the customers tell? They would probably tell their Find out what they like during the course of
opportunities to voice our opinions increase, friends and colleagues of a hellish journey that working together. Then, for example, if you
its importance is growing rapidly. would infer that they would never fly that air- know they like milk chocolate, send them a
Reputation, therefore, is more essential for line again. box with a note. The impact will be huge and
companies than it ever has been. It doesn’t The next day, however, the owner of that air- the story they will tell will be very positive.
matter whether you are a global enterprise or line called every passenger personally to apol- Managing customers does not have to be
a small local outfit. Retaining customers, ogize and offer them a discount on a future difficult. Always think about the story they will
keeping them happy and, therefore, ensuring flight. The story was managed brilliantly. be repeating to their friends and colleagues. If
you have a good reputation is not easy. You see, the story was now about receiving you think it may be negative, think about how
There are a many myths spoken about man- a personal call from such a well known and you can turn that around.
aging customers. There is, however, a simple busy person and the delay became incidental. You don’t have to spend a lot of money but
and effective way for ensuring you are always Instead of the airline being criticised for a poor you do have to give it a lot of thought. Having
mindful of your reputation. In any situation, service, the story was all about their excellent customers talking about you in a positive light
ask yourself one question, customer service and how much they care. and ensuring you have a good reputation in
If you want to ensure you manage your cus- today’s market place is invaluable. Quite sim-
tomers successfully; you need to be con- ply, you cannot afford not to.
“What story will my customer tell?”
stantly thinking about the story they are likely
to tell. Just sending them a thank you note
It is this question that enables you to decide Grant Leboff is Principal of Watford based The
when they decide to use you, will mean they
how to handle any situation effectively. The Intelligent Sales Club working with companies on
will be telling a good story. How many compa-
story the customer will tell is how you are per- effective sales and marketing strategies and lead
nies do that and yet it is so simple?
ceived by them and, therefore, how you will be generation; creating a steady stream of sales op-
During the time they are engaged with you,
perceived by others. It is this perception that portunities for businesses. For more information
ask the same question. For example, If you
is all that matters. visit www.intelligentsalesclub.com or call:
are going to send a Christmas gift, ask the
The customer’s perception is their reality. 0844 478 0044.
question; “What story will they tell if I send
Whether it is right or wrong is irrelevant. Win-
www.businessindependent.co.uk | 19
SECTION
© 2007 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved.
Do you have
You barely
time to teach
have time to
an advisor
read this ad.
your business?
The less your professional advisors understand Putting you one important step closer to the kind of
about your business coming in, the more you informed advice you’re looking for.
might have to teach them.
Contact Mike Coughtrey, Senior Partner for KPMG in
And the longer it could be before they’ll have anything St Albans via e-mail at michael.coughtrey@kpmg.co.uk
useful to contribute. But KPMG in the UK has chosen
to focus on key industry sectors. So when you call us kpmg.co.uk
in, we can bring deep vertical knowledge with us.
20 | www.businessindependent.co.uk
www.businessindependent.co.uk | 21
SECTION
enables
SMEs to achieve cost savings by working smarter and more efficiently.
We help you cut out the non-value adding processes in your finance function
thereby saving you money.
We also ensure that you receive the right reports to run your business effectively.
22 | www.businessindependent.co.uk
Are you
covered?
W
ith over 200,000 SMEs any legislation changes and HR updates, and stock or change your premises then you may
expected to go bust in therefore help you avoid any future fines or find you’re not covered. It is however possi-
2009 those that will costs. ble with many companies to update your pol-
With the growth of comparison websites, icy but you must ensure they are notified of
succeed are companies that under-
many are tempted to choose the cheapest any changes at the earliest opportunity.
stand the changing nature of risk and
option that ticks the most number of boxes. Business continuity insurance
are willing to adapt.
However, as a result of insurance providers Another common mistake made by SMEs
As many businesses are trying to reduce
wanting to appear as high up the list as is the failure to take out business continuity
costs cutting their cover can often be
possible and so often have to hide costs that insurance or instead a very cheap package.
tempting. However, without it the
come into play later on. However, before making this decision you
consequences could be far reaching and
Many will charge high interest rates on must think through the possible conse-
potentially devastating for a company’s
monthly direct debit payments or have high quences of a worst case scenario. If your
future.
excesses on claims. So before making any premises suffered a fire, would you be able
Consult a professional purchase decisions ask someone to take you to keep trading? How important is another
While your needs may seem simple and through the details so that you are aware of office to you? If your IT failed would you be
small the most important thing for any small any further costs down the line. able to operate elsewhere? Do your cus-
business is to take on board professional
Make sure you forecast properly tomers expect you to maintain a service at
advice such as a broker. As your business
When deciding on the right package for all times? Could you afford to not trade? It
changes so will the needs of your cover and
your business it is important to ensure you would be wise to talk through this issue with
a good broker will be able to tailor your cover
forecast for your needs over the time it is due your professional advisor and try to find a
specifically to your needs. More importantly,
to run. If you take on more staff, increase package that offers the right support.
they will also be able to keep you informed of
IT ADVICE
So will cloud
computing lift
your business?
W
hy do larger compa- cations, which can level the play-
nies get the benefits ing field and make powerful busi-
of new software ness software available to any
business – from a one-person
first?
start-up to an organisation with a
When productivity-enhancing
turnover of £20m or more.
applications like CRM, sales man-
agement and even accounting
software are introduced, they’re Cloud formations
typically aimed at big organisa- How do cloud applications do
tions with big IT budgets. this? Put simply, instead of pur-
These applications trickle down chasing the software applications
to smaller businesses eventually. you want, and installing them on
But even then, costs are still high: your own computers (with all the
the software has to be pur- associated upfront costs), the ap-
chased, licensed, maintained and plications are hosted on secure
supported. Hardware often servers that you access over the
needs to be upgraded. And it all Internet – that is, in the cloud.
serves to distract you from run- You use the applications, and
ning your business. input or extract data and files, via
However, there are new types your web browser.
of software application that offer This works in the same way as
even larger benefits to smaller or- web-based services such as Hot-
ganisations than to larger ones. mail, Google Mail and Amazon.
These are cloud computing appli- These are all methods of storing
24 | www.businessindependent.co.uk
IT ADVICE
and accessing data via a web
browser, making them classical
As long as you have a connection to the was becoming an issue for the
growing company. Managing di-
cloud applications. And in the Internet, you can retrieve files and access or rector Elaine Whylde said: “We
same way, a major advantage of were looking for a cost-effective
cloud applications is that some- manipulate business data anywhere – solution to provide a single, real
one else is taking care of all the
awkward, costly parts of business
whether at your desk, or a WiFi hotspot or 3G time view of our central stock po-
sition, both internally to the busi-
computing – buying and running ness and externally to our
servers, maintaining the software, browser, with their files and data managing and maintaining the customers through our e-com-
handling upgrades and so on. securely backed up on servers in applications are removed – you merce web site.
With the upfront and ongoing the cloud. simply use the applications, with- Allgas chose an application,
costs of software removed in this This has several key advan- out the need to dedicate re- which gives access to stock infor-
way, you just pay to use the ap- tages, quite apart from the obvi- sources and manpower to mation, purchases and transac-
plications as you go along – typi- ous low costs and avoidance of support them. tion records, so stock levels can
cally a low monthly fee (around upfront investment in new soft- Let’s take a look at a case be managed efficiently. It gives a
£25 per user). And you have the ware. First, you’re no longer de- study of an established business constantly updated, real-time
ability to add functions and users, pendent on one particular that’s benefiting from using cloud view of the company’s current
as you need to. You pay for computer to access and work on computing applications. position, and can be accessed
cloud computing services just like business data. As long as you Allgas is a Yorkshire-based securely from any web-enabled
you pay for electricity or water – have a connection to the Internet, specialist supplier and maintainer device at any time, helping with
as you use them. you can retrieve files and access of gas and electrical appliances planning and decision-making.
or manipulate business data any- and accessories. Allgas carries a Put simply, cloud computing
Clear benefits where – whether at your desk, at large stock of appliances, acces- gives a way for smaller compa-
So you access the business ap- home, via a WiFi hotspot or 3G sories and spares, totalling some nies to access enterprise-class
plications you want to use – from on a laptop or web-enabled 30,000 items across its two sites, business software applications,
accounting, and e-commerce to handheld device. So you can and is building an e-commerce and get the same benefits, with-
CRM, stock management and so take your business wherever you site to enable customers to order out the enterprise price-tag or
on – online in a single ‘dash- go. parts online nationally. maintenance costs.
board’ display in your web Second, the headaches of In particular, stock management
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www.businessindependent.co.uk | 25
SECTION
O
n 6th April 2009, The legislative measures are
employers and based on the Employment Act
employees were 2008. The Act paved the way for
the Acas statutory Code of
given greater
Practice on discipline and griev-
flexibility to deal with
ance, which sets out the princi-
workplace discipline and
ples that employers and
grievance issues in a way employees should follow when
which suits them best. dealing with disputes at work.
The government repealed the The foreword to the Code
2004 statutory grievance and highlights that employers and
disciplinary process. A new employees should always seek
framework for resolving employ- to resolve disciplinary and griev-
ment disputes in Great Britain ance issues informally. However,
emphasises the importance of where an issue cannot be re-
the early resolution of workplace solved informally, then it may be
matters in the workplace.
26 | www.businessindependent.co.uk
SECTION
pursued formally. According to is not possible to resolve disci- mediation processes that it can one day through mediation. In
the Code, employers and em- plinary and grievance issues in be applied to individual, team, the UK, mediation has a success
ployees should behave fairly and the workplace employers and departmental, functional or or- rate of 93%
reasonably when taking formal employees should consider ganisational disputes. A further Whether you run a small,
action to resolve their dispute. using an independent third party strength of mediation is that it is medium or large business there
This is great news for busi- to help resolve the problem. In quick. For example a dispute is likely to be a risk of this type
nesses. Research shows that in some cases, an external media- that has been rumbling on for of scenario happening within
some cases, managers spend up tor might be appropriate”. years can often be resolved in your organisation.
to 25% of their time dealing with Mediation has been practised
issues associated with conflict. in the UK for the last 20 years. It
Although the principles manag- is a future focussed process that What should you do now?
ing grievance and disciplinary is- is less concerned about who For your organisation to also benefit from engaging
sues should still be applied, the might be right or wrong. It is with conflict resolution principles here are 5 steps I rec-
encouragement to solve difficul- more concerned about solving ommend that you follow.
ties at an earlier stage will help problems so that they don’t 1. Consider training some colleagues to become accredited me-
companies save money. The occur again. In mediation re- diators. This could be done on an in-house basis.
Chartered Institute of Personnel sponsibility for finding a work- 2. Partner with an external mediation provider. This will ensure
and Development estimates the able solution for the dispute that in cases where there may be a conflict of interest to appoint
cost of conflict to UK business rests firmly with the parties. The an internal mediator you can call on the services of an external or-
as £24bn per year. In a time of mediator facilitates the process. ganisation
economic uncertainty, this could The 5 main planks on which me- 3. Review your organisations policies and procedures to incor-
be a good time to embrace new diation is based are: porate clauses that promote and encourage early resolution of dis-
thinking that will help increase • It is voluntary putes and mediation
efficiencies. • It is confidential 4. Review other parts of the HR framework. For example con-
Organisations that fail to pur- • It is without prejudice sider offering training for line manages on topics such as ‘how to
sue options for early resolution • The mediator is neutral and manage difficult conversations’ and equality/diversity training
may be penalised in the event impartial 5. Link any success from mediation back to the business case.
that a case goes to Tribunal. • It is non-binding Identify savings made and ensure the benefits of mediation are
What is Mediation? (until agreement is reached) publicised within the business.
The new Code states “Where it One of the strengths of the
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SECTION
Big headlines,
small spend
PR activities don‘t have to break the journalist will let me draft the fea- ness campaign which could in-
ture which they will go on to edit; volve a national newspaper part-
bank - as local marketing guru Julia or the media might be contacting ner - and the budgets will vary in
Girling of JGC outlines. you with regards to a story they
are researching, again a PR will
accorance.
Local cause-related campaigns
use this opportunity to generate offer excellent value for money as
I often meet directors of ing objectives and who you need
maximum coverage for your com- they can have a huge impact by
small or medium-sized to reach and influence. Your tar-
pany or brand. generating coverage and support
businesses who tell me they get audience might be people liv-
The majority of my time is dedi- from local papers, businesses
ing within the local area, in which
would love to employ a PR cated to proactive media relations and organisations, but can be or-
case a media relations campaign
agency but could not afford – this is where I contact the jour- ganised on a limited budget.
aimed at local media will make a
the hefty fees. nalist and ‘sell in’ a story that will
real difference; or maybe you
There is definitely a misconcep-
need to communicate with pro-
generate positive coverage for A cause
tion that PR and marketing cam- my client e.g. a new contract win; Firstly the PR needs to find a
fessionals within a specific indus-
paigns automatically equate to a particularly successful case cause that is relevant to your
try, in which case you can launch
big bucks and this does not have study; product or service business and its culture e.g. a
a trade press campaign.
to be the case. There is also a launches and promotions; staff local car insurance company
I use one of two approaches
myth that bringing a PR agency initiatives, such as, raising money might run a ‘Driving towards a
when contacting the target media
on board involves signing up to a for local charities. Safer City’ campaign.
- reactive and proactive media re-
long-term commitment and, Your PR will compile a case for
lations. Reactive is when you are
again, this is far from the truth. I
responding to the media’s Budgeted the campaign by using research
have many clients that I work for A media relations campaign is data e.g. statistics showing that
agenda e.g. trade publications
on an ad hoc or project basis. budgeted on the hours incurred road accidents are rising across
produce forward feature lists that
There are numerous ways that by the PR; and so can be as the city; highlighting particular
chart their forthcoming scheduled
your business could benefit from small or large as you wish. danger spots; listing the regions
features – if one of them is rele-
PR expertise that does not have Another cost effective PR tactic safest roads etc. The company
vant to your business to give
to break the bank. It is really de- is media promotions, this might then needs to be seen to do
comment and/or be interviewed
pendent on your specific market- be in the form of a product com- something to support the cause
for the feature; in some cases the
petition or reader giveaway; a e.g. commissioning an expert to
media sponsorship or advertorial. provide hints and tips on safe
EverheardofCharteredAccountants Many local newspapers and trade driving habits; sponsoring and
thatofferFixedFeesandUnlimitedFreeTelephone or consumer magazines regularly providing free local road safety
give their readers the chance to classes and producing ‘Be Safe’
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&attentionthatweoffer&it’sveryprofessionaltoo. negotiates the competition with which will launch the campaign to
the publication; sources visuals the media.
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Cause-related PR campaigns worth investigating the different
Email:help@skinnerandcompany.co.uk range from a specific regional ways you could generate great
Website:www.skinnerandcompany.co.uk ‘call to action’ by the brand to its publicity for your brand, without
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28 | www.businessindependent.co.uk
SECTION
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out on business they knew was cautious when entering into new
right for them. After evolving their business relationships. They will
existing brand and dissecting the be on the lookout for a brand that
product offer, the business
recorded a 700% increase in new
they can relate to, one that
matches the needs and values of EEVERY
V E R Y THING
THING
their business. L I M I T E D P E R I O D O N LY
business generation within 12
months. This has kick-started a This is where brand works most
effectively. Creating differentiation
Webdesign
Webdesign
period of significant growth over
the last two years. Brand plays a is one of the most important at- E-Commerce
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Websites
ebsites
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company is perceived and how it perception of quality in the mind
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Creative
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tionship with a brand
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The current climate offers great
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ourth W
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evolving with the times and are independents are looking to cut
www.businessindependent.co.uk | 29
SECTION
costs. SMEs need a good brand double their turnover, but An effective brand strategy its, whilst also adding value to the
behind them to leverage credibil- achieved this in 2 after reposition- should deliver results to the bot- customer. From multinational
ity for bigger contracts. ing the business as a complete tom line and therefore should al- companies to SMEs the princi-
Interior Surfaces solutions provider. Turnover rose ways have targets to meet and be ples are the same - good brands
Interior Surfaces, bespoke from £1.2m to £2.4m. measured for performance. It will be reflected in a stronger bal-
manufacturers of solid and lami- This was put down to the new should tie into your wider market- ance sheet with a higher level of
nate surface products, decided to brand and strong design ideas ing strategy and flow consistently profitability for a given cost of
invest in their brand as a way of bringing a sense of what they within an organisation's internal sales – a very attractive proposi-
attracting larger contractors. They were able to achieve to the com- and external communications. tion to build a business around.
invested in a re-brand because pany, both within the business This makes the brand a more But what must be remembered
their existing image was not rep- and externally, and have since powerful tool. first and foremost is that a brand
resentative of their capabilities gone on to successfully win con- Branding affects business is not just a logo, it is paying at-
and they wanted to appeal to a tracts with larger clients, and en- Brand equity is turning into a tention to every aspect of commu-
larger commercial customer base. tered new markets. corporate asset that provides fi- nication within an organisation,
They had a 5 year plan in place to Design with targets to meet nancial return and long term prof- from stationary to staff.
30 | www.businessindependent.co.uk
BUSINESS ADVICE
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www.businessindependent.co.uk | 31
Business Advice
A
recent study by the Here Allison provides 10 top £50,000 of savings a company examining and any developments
Chartered Institute tips to trim business expen- would have to increase sales by that you may be able to capitalise
of Personnel & De- diture: £625,000 to have the same posi- on. For example the fact that en-
tive impact on the bottom line. ergy prices are currently going
velopment concluded that
It is critical to start caring about down and paper costs are on the
making job cuts should be Create a cost conscious
cost management before the situ- up. Establish a supplier market in-
the last resort in the current culture
ation becomes critical and hasty telligence system and update that
economic downturn, after The economic boom over the
decisions have to be made. Also system at regular intervals.
revealing that the cost of last ten years may have affected
get your suppliers involved during To have any chance of negotiat-
laying off an employee your employees’ focus on cost
the implementation of the cost re- ing favourable arrangements with
control. Develop a culture where
could be more than £16,000. duction programme. suppliers, you must have knowl-
everybody within the organisation
Against this another study re- edge of the prevailing market
is responsible for challenging
vealed that 69% of Financial Di- Lead by example prices and practices. Do not rely
costs, from the receptionist book-
rectors feel under pressure from Business leaders need to set an on your supplier for this infor-
ing a courier to senior manage-
board colleagues to find more example by demonstrating to em- mation.
ment reviewing their nationwide
ways to cut costs. With Britain ployees that they care about sav- Also don’t waste time and en-
logistics provision.
now officially in recession, how ing money, even on the smallest ergy on looking at individual item
Celebrate cost reductions as
does a business keep costs in items. Don’t book the most ex- costs from different suppliers. By
you do business wins. Even cre-
check to maintain a healthy bot- pensive flights and hotels when enhancing your knowledge of the
ate an internal awards scheme for
tom line without necessarily mak- you are asking your own manage- supplier market place you will in-
cost reductions made by employ-
ing redundancies? Robert ment teams to take the budget crease your confidence of using
ees.
Allison, Managing Director of Ex- option in both cases. one supplier for a number of
Make staff aware that savings
pense Reduction Analysts, the As a business leader you will items and gaining from a ‘basket’
go straight on the bottom line.
world’s largest cost reduction need to open your organisation to cost rate.
Also use powerful and simple
consultancy, believes that organi- scrutiny and examine every cost.
monetary examples to educate
sations can make savings in the Don’t purchase things you
your workforce regarding the
region of 20% on average Be marketwise don’t need
quick and significant impact that
through putting the spotlight on a It is critical that you are aware Buy what you need and not
cost savings can have on prof-
range of non-core operating of the constantly changing sup- what your suppliers would like to
itability. For example, based on a
costs. plier market for the costs you are sell you. Suppliers will often use
typical 8% profit margin, for
32 | www.businessindependent.co.uk
Business Advice
bait-and-switch tactics to move how many suppliers will back
you onto their higher margin down to retain the business.
items or will try their version of As highlighted above do your
the fast food pitch “would you research and comparison-shop-
like fries with that?” Many suppli- ping before approaching suppli-
ers make much more money from ers so that you are able to
supplementary services or add- negotiate from a position of
on services such as service or strength. During negotiations
maintenance agreements. Be present the value of your busi-
sure you understand what you are ness to the supplier.
buying and whether you really
need it. For example, do not pur- Establish key supplier
chase premium services unless performance
they are necessary, such as a In addition to reviewing prices
10am courier delivery if 5pm is look at establishing key perform-
acceptable. ance indicators, which are appro-
priate for your business. Set them
Establish your costs higher than required and this will
You may believe your costs are add to the cost base. Conversely
under control but your perceived set them too low and this could
‘well kept ship’ may not be as affect the quality of your service
leak proof as you thought. Foren- to your clients and business rela-
sically examine and benchmark tionships in the longer term.
your costs line by line. It is often Make sure you obtain manage-
our experience that this is where ment information from suppliers
the barrier to making cost im- relating to any cost increases/de-
provements lies as this demands creases, otherwise these could standards match the agreed costs and many more.
significant resource. Therefore it be easily be hidden, and therefore specification. Also remember to By following these ten steps
could reap significant dividends missed, in an invoice incorporat- frequently review each business you should be able to guarantee
to look at using outside agencies, ing a large number of supplied cost category whether it be return on your cost reduction
consultants and benchmarking items. This both helps avoid over- logistics, property, banking, programme.
services to establish your costs charging and ensures a transpar- telecommunications, property
by getting comparisons against ent relationship with the supplier.
competitors and other suppliers. Finally constantly monitor the per-
In doing so you will highlight formance levels and adherence to
areas that have the most potential the contract.
for improvement and will help you
set cost saving priorities. Jettisoning suppliers should
be the last consideration
Keep the green light Reducing costs is not just
flashing about going to a cheaper sup-
Instil a sense of urgency and plier. Indeed good relationships in
create a culture of cost con- any line of business are funda-
sciousness where employees act mental and the one with your
immediately to reduce costs and supplier is no exception. By !
maximise profitability. If it does following the tips above and " !
not remain high on the board- " ! !
working in partnership with your
room agenda, employees will see suppliers to identify cost cutting
the directors’ crusades as ‘the strategies you can in the majority
flavour of the month’ and the of cases generate savings without #
drive to cut costs will fall to the affecting or disrupting standards
bottom of everyone’s in tray. of service through changing
suppliers. $ %
Let suppliers know about & &
your cost review Create a long-term cost-
Rarely will a supplier volunteer management programme
a price review. Let your suppliers Potential savings are great, but % (( 23 2 24 5 *6 3 78 5 4 26 3
know that you are undertaking a they don’t mean anything unless
review of all overhead costs. Also they are realised. After imple-
refuse to accept price increases menting a culture of cost con-
# 9 : 2
during these challenging times as sciousness, appoint cost
: *
well as suppliers’ statements that champions to drive the
4 ; <;*
‘our prices are higher because we programme forward. Constantly '
provide superior quality and serv- monitor the situation to ensure
ice’ or “our prices cannot be staff are not slipping into old ( $ )
beaten” – remember it is a buyers habits; suppliers are charging cor- * +,- .,-"" ./. 0 ,1..1
market and you will be amazed rect prices; and that service
www.businessindependent.co.uk | 33
SECURITY
Protecting
your
assets
In the current economic cli- tomer if it’s been stolen or you not having cigarettes and alcohol coming more common. Your
mate, protecting your busi- being able to trade if your office stolen, offices are having PC’s alarm secures your building when
ness is essential. Every or computer system is out of ac- and laptops taken and contrac- you are not there, but what keeps
tion due to fire can have serious tors are losing power tools from your staff, their possessions and
sale, purchase and decision
consequences to your ability to sites, offices and stores. your assets secure? Locking your
you make, will ensure the
trade. Your customers may go By reviewing your security doors and preventing walk ins
continuing success of your
elsewhere and find another sup- measures, this can reduce the can stop you losing a laptop with
company, large or small. plier if you can’t help them and it risk of becoming a victim to business critical information.
What would happen if you were could take months to win them crime. Adding some more protec- For further advice and informa-
to suffer a burglary or a fire? Even back once they have found tion to your office, installing an tion, or for a free audit of your se-
if you are insured against the loss someone else. extra CCTV camera or having a curity arrangements, please
or damage, there are consequen- Burglary is on the increase with simple door entry system fitted contact us at Detection Security
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MOTORING
www.businessindependent.co.uk | 35
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