A Spectator always sees more of the game

 

During my various assignments one observation holds true – whilst there are businesses that (for a variety of reasons) destined to fail, there are many that would thrive based on receiving fresh input.

Particularly for those running an SME the personal level of involvement and commitment often means that it is very hard to change direction or take appropriate remedial action.

This is where an “outsider” can be of assistance – an objective appraisal can in many instances mean the difference between merely drifting as opposed to decisively moving forward.

Time Wasters – certainly a growth sector

The life of a Consultant is certainly not without its frustrations but undoubtedly the most irksome is the prevalence of the “time waster”.

Picture the scenario - contact is made by a company who wishes to engage the services of a Consultant to address the problems within their organisation. The Consultant spends time studying the brief and formulating a strategy for tackling these problem issues.

At the end of this initial process (often involving a series of meetings) it appears that it’s all systems go - then the Client goes cold - the time waster has reared his head again.

It is an all too familiar story - the troubled company appreciates it has problem areas but when faced with an objective assessment it is all too easy to duck the issue and try to muddle through.

The downside for the troubled company is this inertia will in most cases signal the slide into administration and or liquidation.

If you need an assessment of your business and (and I take it as a given that you are serious!) then why not check out my profile at
http://www.linkedin.com/in/gordonblackburn or contact me at gordon.blackburn1@btinternet.com

Banks – horrible sense of déjà vu

The Global stock markets continue their gyrations and once again it is the Banks under the spotlight.

Many of us find it incomprehensible that despite all the evidence to the contrary the Banks still seem to behave with a staggering disregard towards their
Shareholders and their Customers alike.

The level of their incompetence is only matched by the level of their arrogance.

Whilst the would be Masters of the Universe dream up more and more exotic financial instruments destined to lose more money their counter parts at retail level have turned Branches into a cross between a Disneyland and a Fast Food Outlet complete with piped muzak and garish Staff uniforms.

Who on earth has dreamt up this theme park approach to Banking? We don’t need to become friends with the Bank’s representative extolling us to “have a nice day”we just want a good professional service.

As we are witnessing yet again, the Corporate Bankers are even more incompetent, it’s just that there rewards are more lavish. Is it any wonder we find ourselves
once again staring into the abyss when the calibre of these Bankers is so poor.
Bear in mind the European Banks now have an estimated exposure of £258 billion
arising from the Debt Crisis.

Would you really feel confident sending them out to get you a sandwich?

Far from letting them have access to more money to fritter away we would be better off giving them a payment to go now before they wreak any more damage.

Navigating treacherous currents

A combination of recent market volatility, the continuing spectre of failure in
the Eurozone coupled with latest pronouncements from politicians and economists alike have done little to restore confidence 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. Very few businesses fail overnight
and there are usually enough warning signals which should enable a supplier to
reduce its risk.

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

Time to bite the bullet

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 from large corporations to smaller SME’s.

In the never ending quest for larger profits many of the disciplined measures of
business were abandoned.

An analysis of recent business failures 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 thorough analysis of the current Debtors Book might make for uncomfortable reading but like most unpleasant tasks it should not be ducked.

It is far better to take remedial action such as a write down whilst you are in control of your own destiny rather than have a 3rd Party appointed to do it for you.

Keeping the Customer onside

External factors over which little control can be exerted continue to buffet all
business sectors. However, every organisation does have a potentially winning
weapon in their armoury namely the opportunity to offer excellent customer
service.

In these difficult times everyone expects ultimate value for their cash be it the
corporate customer or the man in the street.

It is a paradox that as trading conditions become tougher and business harder to win the level of service offered by many Suppliers is falling very short of
acceptable standards.

From the frustrations of automated answering (devised surely to test anyone’s patience to the ultimate degree) to the failure to meet agreed delivery schedules
Customers are left feeling that their business is not valued.

Little wonder that they choose to vote with their feet.

Customer service is not a difficult act to pull off – in reality all that is required is
to give the Customer the feeling that their business is important and they are
valued, not just “one of a number” or even worse a nuisance.

Those businesses that master the art of Customer service will emerge from this
current difficult period all the stronger.

Red Flag Warnings

Very few companies implode like a supernova. The distress signals are visible for some time before the flame out.

Any analysis of a company’s published accounts or even monthly management accounts are by definition “out of date”.

It is vitally important that all counter parties are monitored closely and “real time”. In the case of customers look out for unusual ordering patterns, repeated delays
in payments – these are early indicators of more serious problems ahead.

For any organisation facing mounting problems it is obvious that the solutions will of necessity be painful. However, radical and decisive surgery is often the only
way to ensure a patient’s survival.

Many companies adopt the Mr Micawber attitude that “something will turn up”. In the overwhelming majority of such cases the only people likely to turn up are the
administrators/liquidators. Be it merely inertia or fear of addressing the
issue the outcome will remain the same.