Sage Software Survey

Business organisations are emerging from the recession with business processes and work flow cycles that are hindering their ability to make the most of the tentative economic recovery” so says a computing survey of over 150 IT decision makers in a report sponsored by Sage Software

Over 62% of respondents cited communication issues between sales and finance departments and a further 61%of interviewees said that inaccurate forecasting information led to difficulties in long-term business decisions.

A similar report by Exact Synergy Software found that a lack of transparency of business processes is making it difficult for UK finance and management professionals to identify their most profitable business areas. Despite this hampering current performance, firms remain confident that they will see growth in the region of 5-10 per cent over the coming 12 months.

Are these findings a reflection of businesses, protecting themselves in tighter times by retaining their cash and accepting those inefficiencies as a trade-off against risk? Or is it that the Management Team are actually unaware of these issues?

Someone within these organisations is flagging it as an issue and yet it’s not being translated into action; why is that?

I raise the question because I believe that IT and MIS strategy is something that is understood and actively managed by both the smaller business and the much larger organisation where IT and MIS are actually represented in the Board Room. The gap is in the middle ground, the medium-sized business where ownership and domain expertise are absent from the organisation structure and that vacuum is filled with either an “IT person” or an IT support Contract.

Are these findings true within your organisation? Drop me a line if you’d like a full copy of the reports or discuss any of the issues raised.

Business Model Generation

I have often written about how the world is slowly being turned on its head and how Directors need to think long and hard about how robust their own organisations value proposition is within the market place.

Last week Kodak filed for bankruptcy protection; what was the staggering sequence events that such a once proud and innovative company could now crumble and with whom does the blame lie?

Nokia report a 31% decline in sales with fourth quarter performance slumping from an €884m profit in 2010 to a loss of €954m in the same period of 2011. I’m sticking with these guys’s they’ve seen the problem, accepted they need to rethink and ditch their prowess and very firmly grasped the nettle by jumping into bed with Microsoft. The fundamentals of what they offer – quality, reliability, tactility and functionality remain valid for me; it’s only in the latter, that perhaps, they now lag.

I have a mantra that I am oft quoted upon “So what happens on Monday morning at ten o’ clock?” and what I mean is – forget the fancy notions, the clever junk bonds, the offset of toxic debt and any other financial shenanigans – what is my business doing today, this morning and how am I adding value to my Customers so that Monday morning next week- I’ll still be here!”; the market is moving very fast.

I’ve just finished reading an excellent book that should firmly stand beside Michael Porter, Tom Peters and Kotler entitled “Business Model Generation” written by Alexander Osterwalder and Yves Pigneur.

Below is an outline video, I hope you grasp hold of its concepts and enjoy its provocation; I look forward to discussing it further with you.

Wishing you a good week.

 

Costa Concordia Disaster Recovery

You’re just finishing off your evening meal, swirling the remains of wine in your glass and reflecting on today.

“It was a good meeting, we got a lot done; this will be a good year” and then the phone rings…

I don’t know if that’s exactly how it happened to Micky Arison, Chairman and Chief Executive of Carnival, but I’m sure the news was greeted with the same feeling in his stomach that we all would have felt.

Heaven forbid anything so disastrous should happen to your business, but what if?

What would your first actions be?

We talk about strategy, financial management and the nuances of the sales and marketing plan but have we covered off disaster or mitigation thereof?

It doesn’t have to be of the magnitude of the Costa Concordia, perhaps a trade debtor gone into receivership. Last year Focus DIY’s demise caused some huge financial losses across the transport sector not to mention actual product suppliers; how many businesses can withstand those losses?

An employee injuring himself at work could potentially expose the Directors to a jail sentence due to an overlooked health and safety issue that was dormant for years; the list of threats goes on.

I’m not a harbinger of doom and my heart and prayers goes out to those whose lives were lost but we must take heed and learn. We as Directors have a duty of care not just to our employees but also our shareholders (read balance sheet)

Our businesses may have become more sophisticated, technology dependent but our plans don’t have to be. In 1957 Jaguar Cars Ltd suffered a huge fire at their Brown Lanes factory, a fortnight later and the first Jaguar Mk1 rolled back off the production line – not a computer backup in sight, nor even thought about.

I repeat the question – what would your first actions be and where is your disaster plan?

Pause For Thought

This Blog is written with a clear intent in mind. It is written to cajole, nudge, prompt and make you, the Director and Senior Manager, stop and think about what is happening within your organisation.

If you survived last year you did well or perhaps as a colleague described it you were “a zombie company” existing to get from one day to the next without challenging the status quo and doing credit to the many skills and experience that got you to where you are today.

I don’t want to patronise, but last year, I saw time and time, again figures and information being presented that oscillated between doom and gloom and high aspiration, each trying to make sense of the dynamics of the economic position and I wonder did you question and give thought to the next three years and if so where did those thoughts feature in your business plan?

I also wrote last year that the business models that we have grown with are being firmly overturned and that if you don’t stop and at least consider the fundamental added value drivers of your business then change will be forced upon you, perhaps for the worse.

By way of levity I’m giving you this excellent video from a software house called Kimble. There are some very good, thought-provoking statements being made.

I hope you enjoy and as ever, if you’d like to discuss any of the topics raised then please don’t hesitate to pick up the phone.

Wishing You A Prosperous & Happy 2012

“Once more onto the breach dear friends”

Wishing you a peaceful, prosperous and happy new year.

Mike

E-Mail Ban at Atos

In case you missed the item, last week, Thierry Breton, the CEO of ATOS, an international company of some 70,000 employees, announced that he was to ban e-mails throughout the organisation within the next eighteen months.

Ignoring the speculative hype regarding the form that this might take and concentrating on the intent, you have to take a step back and think about the implications.

I sat at the weekend watching my two young sons who were smiling and laughing to themselves whilst on Facebook; the mobile beeped and one of them responded with what I presume was a txt. This scenario played itself out for an hour whilst at the back of my mind I was thinking about the e-mail ban at ATOS.

Eventually I asked “why do you not just pick up the phone to speak to them?” to which came the response “but I am Dad!”

So what do you think?

Over to you…

Autumn Statement 2011

George Osborne presented a not unsurprising statement given the debt laden economy, but within the statement there were some opportunities to be looked at and considered.

The following key points are taken from business zone, posted by John Stokdyk.

Kicking off the speech with a review of revised Office of Budget Responsibility forecasts that showed growth dropping to below 1% in 2011 (0.9%) and 2012 (0.7%), the chancellor looked towards a recovery to 2.7-3% in 2014-16 that would allow the government to achieve its long-term goal of balancing the budget by the end of this Parliament.

•A £21bn credit easing initiative based around a National Loan Guarantee Scheme to lower the cost of bank loans for businesses with turnovers up to £50m. Participating banks will be able to raise up to £20bn over the next two years under the guarantee scheme, provided they pass through this lower cost of funding to smaller businesses in lower interest rates on new loans and overdraft – subject to State Aid approval from Europe, small firms should be able to apply for these funds through participating banks in the normal way.

•A £1bn Business Finance Partnership scheme to raise non-bank finance for small and medium-sized Businesses. The government will begin the process of allocating funds early in 2012.

•Enterprise Finance Guarantee (EFG) will be extended from January 2012 to include businesses with up to £44m annual turnover.

•New Seed Enterprise Investment Scheme (SEIS) to be launched in April 2012, offering 50% income tax relief on investments, along with a Capital Gains Tax exemption on gains realised in 2012-13 and then invested through SEIS in the same year. In addition, the government will simplify and refocus the Enterprise Investment Scheme and Venture Capital Trusts.

•Small business rate relief holiday extended for a further six months from 1 October 2012. The Government will also give businesses the opportunity to defer 60 per cent of the increase in their 2012-13 business rate bills as a result of the RPI updating, to be repaid equally across the following two years.

•Extend the R&D tax credit scheme to larger companies in 2013, subject to detailed consultation at Budget time next year. The existing SME R&D incentives will not be affected.

•An extra £1bn for the Regional Growth Fund for England between now and 2014-15, along with a range of infrastructure projects that will be devoted to improving transport and broadband internet services in the regions.

•Make 100% capital allowances available in the Black Country; Humber; Liverpool; North Eastern; Sheffield; and Tees Valley enterprise zones. Further extensions are planned to zones in the North East and a potential new zone around the Battersea power station in London.

•Bring forward employment law and health and safety reforms under consideration part of the Red Tape
Challenge.

•More than £5bn additional spending promised for investments set out in the National Infrastructure Plan, backed by £20bn from UK pension funds.

Are any of the above worthy of Agenda Topic at you next board meeting?