Keeping all the plates spinning

Managing a business in today’s environment is a complex affair – it has been likened to playing 3 D Chess.

Particularly for the owners of SME’s it has never been harder to keep track of the various elements which are buffeting the business.

Now might be an appropriate time to run a check over those areas of the business most likely to cause problems in the coming months.

It is a self evident truth that many a crisis could have been averted by timely intervention. This is where an independent appraisal can identify areas of potential concern but more importantly the ways and means by which to address them.

The question that needs to be answered initially is – can I keep all those plates spinning?

The Banking community –will they ever get it?

Last week’s announcement that the boss of state-owned Bank of Scotland is to receive a bonus of nearly £1 million has once again put the Banks under the spotlight. 

Apparently there was concern that if he did not receive his bonus he would resign. Considering that on his watch the share price of the Bank has slumped by 40% and the turn-around strategy seems very much based on laying off Staff (currently in the region of 3500) it would appear that this wasn’t the most alarming threat. By any measure the performance of Bank of Scotland since the UK tax payer bailed it out has been sub-standard.

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 managerial incompetence demonstrated by these self styled “Masters of the Universe” is almost unbelievable.

It is small wonder that we find ourselves again staring into the abyss.

To an outsider it appears that despite all the rhetoric, nothing has been learnt and little has changed and the only calculations which are being rigorously scrutinised by the Bank’s management are 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 global financial disaster – the Bankers.

Partnerships only benefit from equal input

All too often the focus on the current economic background is negative. However one of the benefits emerging from the current business climate is the value that can be placed on a mutually beneficial Customer/ Supplier relationship.

As increasing numbers of business operate on a just in time inventory basis it is vital that a good understanding exists between supplier and Consumer.

In as much as a Supplier will be prepared to go the extra mile to ensure that his Buyer receives his goods on time and in good order so it behoves a Buyer to ensure that he pays as required and is not abusing the goodwill of his Supplier by “pinching” some extra period of credit.

If both parties work together in a professional and commercial manner then it will strengthen the relationship and both will emerge from the current difficult situation with a renewed confidence in each other and a better based business for the long term.

Tapping the barometer

Very often the best indicators are the least sophisticated. The UK economy remains in a very fragile state – the clearest evidence of this can be seen as you walk down any High Street.

The rising number and popularity of charity shops tell underscore that many families are struggling whilst at the same time the spectre of Administration looms large.

With many people continuing to struggle with debt and job insecurity it is hard to imagine a return to the heady days of consumer excess.

As the knock on effect percolate back down the chain many businesses will suffer. External factors by definition are difficult to handle but at the same time in-house disciplines can at least provide some insulation.

Cash-flow will be very difficult to manage over the coming months so as always strict governance of Debtor and inventory control will provide some measure of comfort.  

Today’s Doomsayers were yesterday’s Financial architects

Setting the tone ahead of the Davos meeting, IMF chief Christine Lagarde has warned the world faces an economic spiral reminiscent of the 1930s unless action is taken on the Eurozone crisis.

Ms Lagarde, speaking in Berlin, warned of a danger of rising unemployment if governments did not act together.

She said the Fund needed 500bn Euros more to help sustain those countries worst hit by the Eurozone crisis.

It is a well known fact that history is written by the victors, one of the spoils of war.

I’m not sure however how the current Doomsayers be they high profile members of the international Banking world or senior politicians can justify their pronouncements when the problems we now face were created on “their watch”.

 It is the ultimate irony that politicians with the so called “light touch” and institutions such as the Bank of England/ US Fed were all too willing not to look too closely into the ways that the markets and sovereign economies were being structured for fear of rocking the boat.

There is a certain black humour that these very architects of disaster now turn round and pontificate about the dangers that the world faces. These were the same people who were lauding and applauding the likes of Sir Fred Goodwin. There also were a number of high profile cheer leaders for the Euro who are now conspicuous by their silence on the matter

Now the man in the street is told to prepare for more belt tightening whilst businesses find themselves desperate for funding as Banks are reluctant lenders as they look to repair their damaged balance sheets.

Plus ça change

It’s good to feel valued

We are operating in times when everyone expects ultimate value for their cash be it the corporate customer or the man in the street.

It is a paradox that as times 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.

Are you interested in acquiring a Rolls Royce for the price of a Ford?

Whilst I won’t be able to pull off that particular stunt, I am able to give your business a thorough overhaul on a cost effective basis.

I can help you to tighten up your operational procedures and drive sales performance. Maybe after this exercise you could well be in the market for a new luxury car.

Why not get in touch and let’s see what we can put together – email me at gordon.blackburn1@btinternet.com