How well do you know your Customer?

Recent rapid advances in technology have transformed the way we do business. Our everyday business tools would have been regarded as flights of fancy not so long ago.

With the unstoppable rise of e-commerce come challenges. Perhaps the biggest danger is the lack of personal contact between a company and its customers. Obviously this is not an issue for an online retailers selling products over the net and being paid via a Debit Card or Pay Pal etc.

However, there is an increasing tendency for B2B sales to be concluded by email or even SMS. The personal element has been lost and so has the identity and customer relationship. The surest way to avoid problems is by knowing your customer and understanding their business. This relationship and mutual understanding is not possible to maintain thru a key pad and email ordering system.

Is your Company in need of fresh input?

I have an extensive business background in sales and business development. In addition to working at senior/ main board level in the UK I also have worked in both North/South America and the Far East.

Currently I am working as an independent business consultant but am looking for a hands on managerial role where I could more fully utilise my business background and contacts. I would be particularly interested in hearing from companies wishing to diversify or looking to turnaround failing business units.

If you are looking to strengthen your management team then I would invite you to look at my profile at http://uk.linkedin.com/in/gordonblackburn or alternatively email me at gordon.blackburn1@btinternet.com and I will send you a copy of my current CV.

Bank losses - haven't we been here before?

Yesterday’s announcement by UBS of the discovery of a “rogue trade” reported to have cost US$2 billion has once again put the Banks under the spotlight.

It is incomprehensible that despite all the evidence to the contrary the Banks still behave with a staggering arrogance towards their Shareholders (in the case of some UK institutions the Tax Payer) and their Customers alike.

The level of incompetence demonstrated by these self styled “Masters of the Universe” is almost unbelievable. Small wonder that we find ourselves once again staring into the abyss when the calibre of these Bankers is so poor.

The basic problem comes down to an extremely poor level of Management expertise and control.

Before this latest black hole was discovered at UBS you can be assured that the trader responsible for this latest flame out was being lauded and applauded and the only calculations which were being scrutinised by the Bank’s management was the size of their forthcoming bonus payments.

It is one of the great ironies that is that despite all the evidence of their incompetence and sheer recklessness we once again find ourselves in thrall to the very architects of the disaster – the Bankers

Accepted Commercial Practice or Subliminal Warning?

The traditional response from recalcitrant Debtors was “the cheque is in the post”. This generally bought some time as generally Suppliers met this response with a weary resignation.

Times have moved on and the latest mantra is “its set up for next week’s payment run”.

Basically the name of the game remains the same, buy some time - achieve a payment extension thereby effectively squeezing the Supplier’s margin.

Obviously it is a difficult balancing act between keeping the customer happy and managing your own company’s cash-flow.

However, all the signs are that the last months of 2011 will be a particularly difficult period across all sectors – it will be vital to keep full control of receivables.

Delays in payment will impact on the bottom line, however the worst scenario is that neglecting to strictly monitor a failing company could result in a total write off.

Don't get blind sided

From a company Manager’s perspective the recent market gyrations and latest pronouncements from politicians and economists alike have done little to calm nerves and now more than ever is the time for good housekeeping and firm controls. Constant monitoring of counter party risk is the order of the day combined with disciplined inventory control.

Just because a customer has always being reliable in the past is unfortunately no guide as to future performance. Look out for tell tale signs such as unusual ordering patterns, delays in payments etc.

The coming months will continue to test but undoubtedly there will also be opportunities for those placed to take advantage of less efficiently organised companies.  Make sure that when the dust eventually settles that your company emerges in a stronger position.

I can assist you in this objective – view my profile http://uk.linkedin.com/in/gordonblackburn

Time to grasp the nettle

Every business transaction contains an element of risk, yet at the same time how satisfactory are the mechanics for managing risk?

In recent years we have witnessed just how costly the laissez faire attitude to risk was in many institutions be they large corporations or smaller SME’s.

In the never ending quest for larger profits many of the saner measures of business were abandoned. An analysis of recent disasters all have one common denominator – the architects of these calamities went hurtling over the cliff like lemmings.

There has never been a more pressing need to examine all areas of exposure.

A forensic analysis of the current Debtors Book might make for uncomfortable reading but like most unpleasant tasks it should not be ducked. Better to take remedial action such as a write down whilst you are in control of your own destiny rather than have a 3^rd Party appointed to do it for you 

Tomorrow the world!

The staple of the Hollywood B movie was the Mad Scientist working away in his laboratory desperately trying to engineer a monster or come up with a powerful formula which would lead to world domination. Inevitably all these grandiose plans ended in failure and the world carried on as before.

Fast forward to today’s world and the threat comes a different source what can be described as the Mad Banker. Working away not in laboratories but behind banks of computer screens these would be Masters of the Universe were also trying to control the world through their own form of financial engineering. By developing trading instruments and programmes of ever increasing complexity they created monsters which just like Dr Frankenstein they could not control.

The results of this spectacularly flawed experiment are now all too visible. As companies and countries alike experience a sense of unease about the world’s economic future.

The greatest irony of all is that despite all the evidence of their incompetence and sheer recklessness we once again find ourselves in thrall to the very architects of the disaster – the Bankers.