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Monthly Archive for August, 2009

Top tips

Published by Business Link on 20 August, 2009 in Top Tips • 0 Comments

To the future

Recent research suggests that despite the prospect of continuing tough times, business optimism about the future is improving. Why not turn optimism into forward-thinking business plans? Define where you want to be in 1, 3 or 5 years from now. Then ‘reverse-engineer’ your vision to identify the key steps required to get there.
Open-book accounting

An unconventional idea that managers should provide all employees with open access to company accounts, and teach them to better understand their company’s financial picture. The aim being to extend a feeling of ‘financial responsibility’ from senior managers to everyone in the organisation. Arguably this helps employees to see how their actions and decisions impact business profitability and success. Not proven business practice, but an approach to think about during these financially conscious times.
Think about you

The recession is placing big demands on everyone, often raising working hours and stress levels; both pressures which research says could be detrimental to personal health and well-being. And no, tough times are not over yet. But perhaps it’s time to think about you – which could mean taking steps to improve your work-life balance, or undergoing training to take on challenges more effectively. Give yourself some attention.
Data strategy

Have you thought about the kind of customer data you might need in the future? For example, collecting data on how customers hear about your business could guide your future marketing tactics. Forward-thinking helps to define future data needs, and allows you to begin gathering valuable customer data earlier rather than later.
Doing good

Is the recession leading us towards a new era in which consumers and new recruits will choose to engage only with ethical, environmentally and financially responsible companies? Some industry experts predict such a trend. If it happens, ethical businesses could gain a competitive advantage, and a marketing opportunity.  

Consumer rights

There are three key legal rights your customers have when they buy or hire goods from you. Do you and your sales people know what they are? If the answer is no, take a look at our Guide to the Sales of Goods Act.  

Contingency planning

The swine flu pandemic has reminded us of the need for business contingency and continuity plans in the event of absence of key people or damage to equipment or property. Read our guide to continuity planning.  

Online survey tools

Various web tools are available which allow you to conduct customer surveys or collect ongoing customer feedback, complaints or suggestions. The tools, which are often simple to use, range from free services to those with monthly usage fees.

More info – Download top tips

Flexible working

Published by Business Link on 20 August, 2009 in HR & People Development and Strategy & Operations • 0 Comments

Three factors have increased business interest in flexible working: employee demand, the recession, and the potential productivity benefits. Together these factors have made flexible working an amicable and efficient way to cut costs during the recession. Importantly, this trend could also benefit businesses in the long-term.

Research indicates that employees want flexible working, and importantly, that they may be prepared to pay the price for it. A survey from communications firm Avaya, which reflects the attitudes of more than 3,500 workers across Europe, found that 69 per cent of UK respondents would consider “some sort of reduction in their remuneration package in exchange for flexible working”, being on average prepared to sacrifice 11 per cent of its value. The survey also found that “85% of employees believe flexible working creates new jobs, keeps people in work and provides opportunities for them to get back into work”, and “67% believe flexible workers are happier and 51% think they are more productive”.

Another survey of workplace trends from the Confederation of British Industry and Harvey Nash, which received 704 responses from companies that collectively employ 3 million people, found that 45 per cent of employers have increased flexible working, and 24 per cent are considering increases. Further research from IRS Employment review found that from 80 firms surveyed “more than three-quarters of flexible working requests were granted at 75% of organisations”.

Andrew McGrath, commercial director at ntl:Telewest Business, said: “Companies under financial pressure can find it difficult to keep their staff motivated and loyal especially if wages and bonuses are frozen, but taking action to help them strike a better work-life balance can help remedy this.”

Putting aside the employee perspective and current financial pressures, is flexible working actually good for long-term business productivity and success?

Employees would likely answer yes, arguing that an improved work-life balance creates a more motivated and productive workforce. As Avaya’s study finds, 59 per cent of respondents believe the key motivators for take up of flexible working are “increased productivity and the desire to keep talented workers with family commitments in work”.

This message might ring true. An article from the Chartered Institute of Personnel and Development says: “flexible working has a positive impact on employee performance and helps to reduce stress, new research has found. The study of seven major blue-chip companies, including Microsoft, KPMG and Centrica, found that flexible working had a positive impact on both the quantity and quality of work produced by employees”.

A further long-term benefit could be an employer’s ability to recruit talent. Predictions from HR experts cite flexible working and green credentials as key factors for attracting talent in the future. Because of increasing employee demand, and the obvious benefits, flexible working options may one day be a business imperative.

More info

Types of flexible working

Meet the need for work-life balance

Business impact of flexible working

Accessibility

Published by Business Link on 20 August, 2009 in IT & eBusiness • 0 Comments

What the law requires

 
The Disability Discrimination Act, which applies to all companies, states that small to medium sized businesses must make ‘reasonable adjustments’ to avoid discriminating against disabled customers and employees.

When deciding what constitutes a ‘reasonable adjustment’, the Department for Work and Pensions suggests considering: the type of business, its size and annual turnover; the cost of an adjustment; disruption while the adjustment is carried out; practicality of the adjustment; and the potential resulting benefits to disabled customers or employees.

The law is framed in this way so that businesses are not forced to make unreasonable changes. Ultimately, failure to make reasonable adjustments could result in legal action by disabled individuals who feel unfairly treated. In essence, the law requires you to be fair and do what is reasonable.

 

Why it’s important

 Disabled customers who feel unfairly treated may not choose to take legal action, but they are unlikely to interact with your business again. Being unfair to a customer usually means losing a customer, so taking steps to provide access for all makes good business sense, and of course – it’s the right thing to do. An estimated 17 per cent of UK citizens have a disability, so it’s important to accommodate this sizeable customer group.

 

The sort of things you can do

 Create accessible information… Use clear text and contrasting text and background colours; Be prepared to provide alternative versions of printed materials, such as braille, large print or audio; Have accessible telephone options such as textphone or typetalk; Audit your website and if necessary make it more accessible.

Ensure accessible premises… Fit a ramp or lift if you have steps or steep slopes; Install a bell or buzzer at entrances for customers to request assistance; Install visual as well as audible alarms; Ensure door handles are easy to reach and grip; Document the needs of regular visitors to provide correct assistance in the future.

Customer service… Offer an accessibility statement outlining what assistance you can offer; Train staff to give appropriate assistance, such as help for a wheelchair user, or reading aloud to a visually impaired person.

Employing people… Create flexible working arrangements, and accommodate the needs of disabled workers; Be prepared to provide job application forms in alternative formats; Hold interviews in accessible premises.

There are many other ‘reasonable’ steps you can take, some of which may be specific to certain industries. Seek expert guidance or conduct an accessibility audit if you are unsure about your specific obligations.

Read – Best practice in web design

Economic Downturn Surveys: Analysis and Review

Published by Business Link on 20 August, 2009 in Finance and Strategy & Operations • 0 Comments

Motivation, focus and positive action are helping many local businesses to feel cautiously optimistic about the future.

During the past year we have conducted two economic downturn surveys, in Autumn ’08 and Spring ’09. Our aims: to understand how the recession has affected local firms, explore what actions businesses are taking in response to these challenging times, and gauge their outlook for the future. Each survey received around 1,000 responses from across the region, predominantly from owners and decision makers at firms with less than five employees.

Cautious optimism

Findings show a modest increase in the number of businesses reporting that the recession has affected them. 17 per cent have been ‘extremely’ affected, a 3 per cent rise since Autumn ’08. But 39 per cent have found trading only marginally more difficult, while 12 per cent claim to have felt no ill-effects.
 
Some businesses have benefited from the recession. 14 per cent of respondents say the downturn has had a positive effect on their business. One third of these businesses have taken the opportunity to change and improve, becoming more motivated and focussed in the face of the recession.

Greater motivation and focus could explain increasing levels of optimism for the future. 60 per cent of firms are ‘optimistic’ or ‘extremely optimistic’ about the coming year, an increase of 7 per cent since Autumn ‘08. Interestingly, this sentiment was also echoed during our recent South West Roadshow event, albeit with an extra word of caution, 55 per cent of attendees felt ‘optimistic’ about the future, while 33 per cent felt ‘cautious’.

Put these words together and you get a ‘cautious optimism’ about the future. In our view, this phrase symbolises the outlook of most businesses today. Most business leaders are rising to the challenges of the recession, becoming more motivated and focussed than before, and crucially, are taking positive action to ensure their futures.

Your actions. Our reactions.

So, what specific actions are businesses taking, and what is Business Link doing to help?  Almost 50 per cent of businesses are reviewing prices; 47 per cent are exploring new marketing and advertising approaches; 41 per cent are evaluating and reviewing their products and services; 38 per cent are reviewing suppliers; Just over one third are working longer hours, and the same number are undertaking long-term planning; A quarter have introduced pay freezes, and 19 per cent have reduced employees’ working hours, both steps seen as more effective than redundancies; Finally, over a quarter of businesses are using steps such as waste reduction and energy saving as ways to go green and save money.

In response to our Autumn ’08 findings we produced a business survival guide which focussed on many of the issues identified in our surveys. The guide provides panic-free tips for surviving tough times, and forward thinking advice on how to build better businesses.   To obtain your own copy of this guide, call Business Link on  0845 600 9966.

Since then we have let our survey results guide the content of our monthly business i newsletter. Our ongoing business innovation and leadership features have been widely popular, we have recently published two special features on pricing, and more generally have produced articles on hot topics ranging from cost cutting and new marketing approaches to supplier reviews,  business strategy and planning.

Thank you to those who took part in our surveys. Our role is to help you through these difficult times, and your participation has helped us to do this better. We hope our information and advice has been useful, relevant and timely.  And if you need any further assistance, please do get in touch.

What actions are businesses taking to face the downturn?
Download full report

Co-creation

Published by Business Link on 20 August, 2009 in Creative • 0 Comments

Henry Ford once said that his customers could buy a Model T motor car in any colour they wanted, so long as it was black. Such thinking emerges from a view that company, not customer, knows best. Skip forward to today and you can design a pair of trainers with a myriad of colour combinations and design features. Such user-empowerment turns Ford’s attitude on its head and places the customer firmly in control.

Cooperating with customers has indeed become more popular. trendwatching.com describes the trend as “the phenomenon of corporations creating goods, services and experiences in close cooperation with experienced and creative consumers”. And CK Prahalad – who according to global ranking Thinkers 50 is “the most influential living business thinker in the world” – says that when creating products, services and experiences “we need two joint problem solvers, not one”. He calls this “important idea” the process of “co-creation”.

Broadly speaking, co-creation has two sides. First is the collaboration between company and customers in the product or service design process. Second is the opportunity to provide ways for customers to personalise products or services in order to satisfy their unique wants and needs. Both these processes have benefited from new technologies; the former thanks to ever-increasing ways to communicate with customers, the latter thanks to technologies which allow for personalisation of products or services.

An example of co-creation in product design is Lego, a company which has co-created products through close cooperation with customers. The NHS is also working with customers to build co-created services which satisfy customer needs and offer improved experiences. In terms of product personalisation the Adidas customisable trainer example reflects the use of modern web and production technologies. And finally, a well-known example of service personalisation is iGoogle, which offers a highly customisable user experience.

Companies have of course been collaborating with customers for years, through marketing approaches such as research or focus groups. But today the scope for engaging in dialogue has widened. For example, numerous companies, such as the company behind the popular video game Call of Duty, are using Twitter to obtain suggestions and product insights which can immediately guide development. And countless other companies regularly tap into user communities or social networks for ideas, inspiration and feedback. The immediacy of response, compared with traditional routes such as research or focus groups, is one big bonus of such methods.

Putting aside modern trends, it is important not to forget the traditional benefits of cooperation for smaller businesses with intimate relationships with customers. Their proximity to customers means that, with or without the use of new technologies, such businesses can continually gain rich customer insights to help create innovative new offerings. For example, service companies such as marketing agencies or web designers are well-placed to collaborate closely to co-create services which meet the unique needs of individual customers.

Of course, Henry Ford’s flippant quote does help to make an important point; sometimes the company, not the customer, knows best. Communication, cooperation and co-creation are all becoming easier, but this does not mean that the customer should always have the final word. While a company should use available tools to gain customer insights, they must ultimately use good judgement to decide what is best.

 More info – Develop product and services guide