EAST ANGLIA in business
BUILDING A CIRCULAR ECONOMY ISSUE 03
F L Y A N
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S P I T F I R E A B OV E
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FO RE WORD
FOREWORD From sustainability to humour: a wealth of insight from this region
his issue includes contributions from colleagues at Cambridge Judge Business School and other thought leaders from around East Anglia, reflecting the impressive breadth of expertise and insight that this region is fortunate to draw upon. Dr Khaled Soufani, Director of the Circular Economy Centre at Cambridge Judge, talks about the necessity – and challenges – in recycling and reusing our planet’s precious natural resources. Building a sustainable business cannot be done in a vacuum, as it requires the cooperation of a firm’s supply chain and value chain – because only then will it become the norm for that particular business sector. The recent InnoFrugal UK conference held at the business school brought together managers, entrepreneurs and academics from around Europe to advance the circular economy cause. On a very different note, Dr Vanessa Marcié writes about how the effective use of organisational humour can help build leadership skills, defuse sensitive situations and assemble effective teams. Vanessa, the CEO and founder of consultancy Leading With Humour, also points out the pitfalls of using humour in the wrong time or place – which risks offending people and harming a manager’s
credibility. Vanessa is an Executive MBA graduate of Cambridge Judge, and has worked closely with me at the school’s Wo+Men’s Leadership Centre in examining how men and women use humour differently. Among other articles, this issue explores East Anglia’s economic growth record, some local successes in life sciences, and unlocking the full potential of the digital revolution in manufacturing. The CEO of Anglian Water, Peter Simpson, talks about the challenges in serving one of the UK’s driest regions, as the area receives on average a third less rainfall than other areas of Britain.
Professor Sucheta Nadkarni Sinyi Professor of Chinese Management and Director of the Wo+Men’s Leadership Centre at Cambridge Judge Business School
CON TENT S
CON T E N T S
Foreword 03 From sustainability to humour: a wealth of insight from this region
Local Enterprise Partnership 08|11 If you were asked to name a regional economic “powerhouse”, Norfolk and Suffolk might not immediately spring to mind. Yet since 2010, economic growth of 9% in the area has outperformed many of the country’s better known “powerhouse” areas.
Life Sciences 14|21 Whilst the recent past has been one of huge uncertainty with regards to the political and economic landscape across the globe, the past year saw major success in Life Sciences & Healthcare across the Eastern region.
Transport and Infrastructure 22|27 Keeping the wheels turning on bus services across East Anglia is Steve Wickers, Managing Director of First Eastern Counties.
Interview 28|29 In this issue, Peter Simpson, Chief Executive Officer of Anglian Water, reveals how the company is tackling the challenges ahead, affirms their public interest commitment and pays tribute to his team.
Energy Focus 30|37 This Summer has seen a marked shift in discussions around climate change targets.
Sustainability 38|41 Few days go by without references in the media to sustainable business and the circular economy, but what’s meant by these concepts, how do we implement them and are there tensions implicit in doing so?
CO N T ENT S
Editor Ellen Rossiter firstname.lastname@example.org
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Interview 42|43 Quite a few of us have considered founding a business, but not all of us take the plunge. In this issue, business owner Mandy Errington, reveals the steps she took in founding her concern and how we can make town centres more attractive.
Talent and Acquisition 44|45 Talent is sometimes defined as the top 20% of the workforce; those that are contributing most to the organisation’s success [80/20 Pareto Principle] but I rather believe that all employees should be making a contribution to business or organisational success and therefore all should be regarded as talent.
Training and Eduction 46|51 We’re just over halfway through the year and it’s amazing to see support for apprenticeships continuing to grow.
Todays Manager 52|55
Social East Anglia in Business
Legal 58|59 In July 2017, an independent review of modern working practices, “Good Work: The Taylor Review of Modern Working Practices”, was submitted to the UK Government. This paid particular attention to agency, casual and zero-hours workers.
@EAinBusiness East Anglia in Business www.eastangliainbusiness.co.uk
Finance 60|63 In today’s knowledge economy, the contribution which key members of staff can make to the success of your business is greater than ever.
Digital and Innovation 68|77
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We live in the age of the entrepreneurs. New startups seem to appear out of nowhere and challenge not only established companies, but entire industries.
Today, interpersonal skills are critical to our personal and professional success.
CON T R I B UTO RS
Dr. Vanessa Marcié
CEO & founder of Leading With Humour
Author, Transforming Legacy Organizations
Dr. Vanessa Marcié is the Ceo & founder of Leading With Humour, an innovative international change management consultancy that inspires leaders to unleash the power of humour to make positive change in the world and achieve business objectives.
Kris Østergaard is the author of Transforming Legacy Organizations: Turn Your Established Business into an Innovation Champion to Win the Future (Wiley, 2019). He is co-founder and Chief Learning & Innovation Officer of SingularityU Nordic, the Nordic entity of Silicon Valley based educational institution, Singularity University.
She is also a seasoned management professional with two decades’ communications, marketing and business development experience, including Vice President, Business Development for London and Partners, the Mayor of London’s promotional agency. As lecturer and researcher she is an expert in business communication, marketing, humour and leadership. Vanessa is a skillful standup comedian who has used her comedy muscle for as long as she can remember. Vanessa holds a PhD in Business Communications from the University of Côte d’Azur and a MBA from the Judge Business School at the University of Cambridge.
Dr. Khaled Soufani Director of the Circular Economy Centre (CEC) Cambridge Judge Business School Khaled’s research interests include the circular economy and sustainable economic growth and innovation, amongst other economic an financial topics. His research is widely published in top academic and practitioner journals such as The Harvard Business Review, California Management Review, Thunderbird International Business Review and the Stanford Social Innovation Review. The World Economic Forum, EU, OECD and the Institute of Directors have all cited, published or included his work in their reports. and process safety performance
Kris is a globally sought-after advisor and keynote speaker on innovation in legacy organisations and corporate culture, as well as co-founder of the experience design firm DARE2, accelerator program Thinkubator and co-working space DARE2mansion. Kris is a researcher and writer who also co-authored The Fundamental 4s - Designing Extraordinary Customer Experiences in an Exponential World. He and his business partner Laila Pawlak are the first persons outside of the USA to be a recipient of the Experience Management Achievement Award. Kris is also a board member, angel investor and advisor to both start-ups and Fortune 500s.
Peter Lawrence Founder & MD of Human Capital Department Peter is a Fellow of the CIPD [Chartered Institute of Personnel and Development] and holds an MA & MBA. He started work in Recruitment & Training, but his first HR Management role was with GE Aftermarket in Aberdeen. Subsequently he worked in the Arabian Gulf in Qatar and Oman with leading international companies in Senior HRM & L+D roles working at “C-Suite” Director Level. After ten years overseas he returned to set up his own HR Consultancy in East Anglia. Human Capital Department supports SME businesses with People Management and Development issues and is now in its fourth year of trading, specialising in Human Capital Due Diligence.
CO N TRI BUTORS
CEO, One Nucleus
Chief Executive, Opportunity Peterborough
After completing a PhD in Biochemistry (1992) from the University of Southampton UK, Tony Jones undertook several years of post-doctoral research in the oncology field, primarily with the Imperial Cancer Research Fund taking novel neuropeptide antagonists into Phase 1.
As chief executive, Tom leads the Opportunity Peterborough team in driving economic growth in the city, working with local businesses to increase job creation, innovation and skills development initiatives. Tom joined Opportunity Peterborough in 2014 from Cambridgeshire County Council’s Growth & Economy Unit where he was Project Lead for Inward Investment. He holds an MSc Development Management and Executive MBA and is a Member of the Institute of Economic Development.
In 1997, he moved into Technology Transfer with the Medical Research Council and moved to University College London, where he was business development manager at the Wolfson Institute for Biomedical Research until November 2003. He then took up the post of director of Biotechnology & Healthcare at London First, managing the London Biotechnology Network and promotion of London’s excellence in healthcare research and delivery, moving the LBN from a primarily inward looking London group to an outward facing business network. In May 2010 Tony took London Biotechnology Network into the merger with ERBI (now One Nucleus) seeing this as the best manner in which to continue assisting their respective member companies in developing their businesses.
Keith-Smith Delive Director, Apprenticeships, ESFA Keith Smith has worked in the skills system for more than 20 years. He has run local skills programmes, ranging from local jobclubs to assessing apprentices.
In recent years he has been leading the development and delivery of the national further education and apprenticeship funding systems. Keith has been a governor of a number schools and university technology colleges.
Co-founder and Managing Director, Mackman Group Paul is a co-founder and the Managing Director of the Mackman Group, incorporating Mackman Research and Mackman, the full service brand development & marketing agency. Paul’s Grandfather set up and ran a successful South London agency, which he cites as being an important early influence that drew him into the world of all things marketing. Paul is a Chartered Marketer and Fellow of the Chartered Institute of Marketing (CIM) and Vice-Chair of CIM, Eastern Region.
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Connexions Building, Princes Street
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FIND YOUR SPACE TO INNOVATE IN NORFOLK & SUFFOLK If you were asked to name a regional economic “powerhouse”, Norfolk and Suffolk might not immediately spring to mind. Yet since 2010, economic growth of 9% in the area has outperformed many of the country’s better known “powerhouse” areas.
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ith the unique combination of a huge rural and urban economy of more than 60,000 businesses, worldrenowned research facilities, a diverse leisure and tourism sector and rich cultural heritage, the area is a fantastic place to live, work and learn. For businesses looking for a new home, there’s an added draw to Norfolk and Suffolk – Enterprise Zones.
space of Scottow Enterprise Park at the former RAF Coltishall in North Norfolk. Huge distribution and supply chain capacity is expanding all along the strategic A14 corridor. At Eastern Gateway in Sproughton, LDH La Doria are building a cutting edge automated warehousing and distribution facility.Leading developer Chancerygate will soon add a second phase of 19 units to Futura Park, just 15 minutes from the Port of Felixstowe. Meanwhile Gateway 14 in Stowmarket and Suffolk Park in Bury St Edmunds bring unprecedented opportunity for growth from the port through to the Midlands.
For new and expanding companies, Enterprise Zones are a great place to do business. As part of the Government’s Industrial Strategy, all areas across England that are designated as Enterprise Zones Meanwhile the benefit from tax global appeal of breaks, simplified Space to Innovate planning processes is clear to see at and government Norwich Research support. Yet very Park, a worldfew of the 48 zones renowned centre unveiled between of excellence Chris Pont, Joint-Founder & Director, IJYI 2012 and 2017 have that’s home to been as successful or 3,000 scientists achieved the scale of and clinicians and those in Norfolk and 115 businesses Suffolk. Our latest zone is the next step in bringing working on food and health challenges of critical ambitious companies and new jobs to the area. global importance. Elsewhere there is fascinating We’ve called it Space to Innovate. work being done by other truly inspirational organisations. Space to Innovate has a unique and compelling
Initially we didn’t think we could afford to move – this is grade A office space – but the Enterprise Zone benefits really helped. Now we have the space to grow our business
offer. Unlike many other Enterprise Zones which occupy a single site near a business park or urban centre, our diverse zone is made up of 10 individual sites spanning urban and rural areas, each with their own identity, sector focus and prime location. Modern town-centre office accommodation on Princes Street in Ipswich contrasts with the open
At Scottow Enterprise Park companies like Beattie Passive and Tufeco are developing state-of-the-art low-carbon construction technologies. Neighbours Swift Technology Group are designing and building a new generation of aerobatic training aircraft and Raptor Aerospace provide launch services, training
Centrum - Norwich Research Park
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and education to the UK space industry, all from a modern site with 60-years of proud aviation heritage.
To the west of the region at the innovation centre at Nar Ouse Business Park, companies Sidekick Digital and Websmart are helping companies grow through creative design, digital marketing, mobile apps and custom business software. Likewise, a revitalised Princes Street office district in Ipswich is home to software developers IJYI, transport telematics firm Seven Telematics and future-focused HR consultancy Buck in the newly refurbished Connexions building. Next door top 100 law firm Birketts LLP have just moved their 300 staff into a stunning new bespoke flagship office. Our ambition is for innovative and future-focused businesses to come together in the zone to capitalise on the counties’ expertise in agri-tech, food and health, offshore energy, ICT and digital & creative sectors. With Space to Innovate there’s opportunity for businesses of all sizes from all-inclusive office space for start-ups, move-on accommodation for expanding firms through to bespoke offices, warehouses and manufacturing units – all connected to strategic transport infrastructure. This puts London and Cambridge within easy reach as well as airports at Norwich, Cambridge, Stansted, Southend and Luton. From Britain’s biggest container port at Felixstowe to those at Great Yarmouth and Lowestoft we have unrivalled access to 150 miles of the allenergy coastline including the booming offshore renewable sector. Joining our growing community of innovative businesses on the Enterprise Zone could give you, Up to £275,000 Business rates relief over 5 years Superfast broadband Simplified planning 100+ Like-minded companies. In addition, a large portion of the business rates collected gets reinvested, ensuring the infrastructure, built environment and local economy continue to grow and evolve, bringing new opportunities and creating an ecosystem of like-minded peers. Numerous loan and grant
support programmes are also available from New Anglia LEP to help local businesses expand and flourish. It’s good news for the local economy too as Space to Innovate has so far delivered, 60 hectares of land now ready for development £196m Public investment for Norfolk & Suffolk £43m private investment secured for the local economy. To find out more about locating your business on the Space to Innovate Enterprise Zone, or to discuss opportunities at our other energy-focused zone in Great Yarmouth and Lowestoft, contact Eunice Edwards, Enterprise Zone Manager at New Anglia LEP – Eunice.email@example.com @newangliaLEP New Anglia Local Enterprise Partnership newanglia.co.uk Enterprise Zone benefits are limited to March 2021 so the window of opportunity is closing fast. If you’re an ambitious business looking to grow, find your space to innovate in Norfolk and Suffolk.
The new site will enable us to showcase science at the front end of the business and attract the sort of customers and staff we need to drive our business forward in the future
EUNICE EDWARDS Enterprise Zone Manager, New Anglia LEP Eunice Edwards is the Enterprise Zone Manager at New Anglia Local Enterprise Partnership and works with partners in the development & delivery of the 16 Enterprise Zone sites across Norfolk and Suffolk. She actively promotes the benefits of the sites to businesses in the East of England and beyond.
Daemmon Reeve, Chief Executive Officer, Treatt PLC
ADVE RTO R I AL
B ro adl a nd B u s i ne s s Pa rk
BROADLAND BUSINESS PARK Grade A office accommodation and flexible space for commercial and logistics uses
roadland Business Park in Norwich has cemented its position as the pre-eminent business park in the area. It combines Grade A office accommodation and readily available development land for commercial and logistics uses with a highly attractive mature landscape, footpaths, coffee shops, a lake and a range of other facilities for occupiers.
BROADLAND BUSINESS PARK broadlandbusinesspark.co.uk
Broadland Business Park’s strategic location is another benefit, being adjacent to both the A47 Norwich southern bypass and the recently completed A1270 Broadland Northway, often known as the Northern Distributor Road, which brings Norwich Airport a matter of a few minutes’ drive away. 40 acres of development land offering design and build options from 10,000 to 100,000 sq ft, or land sales, for B1, B2 and B8 uses has recently been released and is generating interest, as James Allen of joint agents, Roche Chartered Surveyors, describes. “This is excellently located land suitable for development for commercial and logistics uses with a very flexible choice of freehold or leasehold plots
on a design and build basis. Interest is very buoyant from potential occupiers wanting good access to the region’s road network, which has improved significantly with Broadland Northway now open, immediately adjacent to the Park.” Joint agent Nick O’Leary of Lambert Smith Hampton adds: “Broadland Business Park offers Grade A office suites for early occupation, with Lakeside 200 offering 5,000 to 10,000 sq ft. It is exceptional accommodation in a working environment which is hard to match. New freehold or buildings for pre-letting up to 40,000 sq ft are also available.” For more details of available space at Broadland Business Park or to arrange a viewing, contact the joint agents: James Allen at Roche Chartered Surveyors, 01603 619876, firstname.lastname@example.org Nick O’Leary at Lambert Smith Hampton, 01223 814256, NOLeary@lsh.co.uk More details and a video of the Park are at www.broadlandbusinesspark.co.uk.
Norwich’s Premier Business Location
With excellent access to the region’s road network, a superb mature landscaped environment, Grade A offices immediately available and plots for commercial and logistics use, Broadland Business Park is Norwich’s premier business location. Talk to us first.
O p p or t uni t y Pe terb oro u g h
WE ARE EXPANDING DESIGN AND BUILD OPPORTUNITIES FOR THE RESEARCH AND DEVELOPMENT SECTOR IN A WORLD-LEADING RESEARCH COMMUNITY. One of the largest single site concentrations of research in food, health, and life sciences in Europe, Norwich Research Park has world-leading credentials.
01223 276 336
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LIFE SCIENCE SUCCESS Whilst the recent past has been one of huge uncertainty with regards to the political and economic landscape across the globe, the past year saw major success in Life Sciences & Healthcare across the Eastern region.
ecord levels of venture investment, corporate deals, property investment and product development success suggest Life Sciences and Medical Technology research institutions and businesses are thriving. There remain concerns and challenges in maintaining this momentum absolutely, but when one considers factors such as: the strengths that have led to a track record of success; the changes within biomedical research driven by technology and demographics; and increasing collaborative spirit across local government boundaries, then the reasons to be optimistic are manifold. The region has been at the forefront of emerging fields such as Precision Medicine, Genomics, Artificial Intelligence & Machine Learning, Advanced Manufacturing, Nutrition & Wellbeing and Medical Robotics as they have emerged from academic theory to practical application. These fields and disciplines are increasingly converging as we seek to not only develop new medicines, but to engage in ever earlier diagnoses for example. Harnessing the power of advances in areas such as genomics, electronic health records and imaging requires integration of vast pools of data, effective data science strategies and a modern NHS infrastructure. There is always room for improvement, but looking at NHS beacons such as Addenbrookes, Papworth and the Norfolk & Norwich University Hospital, all integrating with
primary care across the region, then it is easy to see how the required data pools to enable evidencebased healthcare delivery are feasible. When one considers the source of inventions and insight that continue to challenge the status quo in disease understanding and treatment, then much like the clinical centres of excellence, one doesnâ€™t travel far between world class research institutions. Commitment to investing in critical research base initiatives such as the Quadram Institute, Wellcome Genome Campus and Babraham Research Campus has rendered the region one of the hottest locations for academic research. The Centre for Advanced Manufacturing together with major stakeholders such as Hethel Innovation, TWI and BT of course enable the engineering into the sector to strengthen the offer considerably. Norwich Research Park continues to develop as a hub to attract entrepreneurs, investors and corporate partners engaged in forming and growing new businesses that are translating this excellent science into new products and services to benefit patients.
The region has been at the forefront of emerging fields such as Precision Medicine, Genomics, Artificial Intelligence & Machine Learning
It is not all about new medicines and devices. Much is spoken and written about what emerging challenges such as changing demographics, costs of healthcare and anti-microbial resistance mean for future health and wellbeing. Our region is primed to play a leading role on these aspects much like ď‚Š
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such as entrepreneurship, finance, patents and legal. The highly developed ecosystem for translating science into business is a key factor in ensuring advances reach their market. Sustained government investment in research excellence and its infrastructure is vital if the region is to continue to lead, attracting the best possible talent across all required disciplines. Anything that suggests not investing in the ‘brand leader’ perhaps should be approached with caution.
it has in the past centuries of addressing vital challenges. A key demographic shift is the ageing population. Through better nutrition, medicines and living standards, we are living longer. Ultimately, it is not simply life-span that we need to consider perhaps, but health-span if citizens are to have as good a quality of life throughout as possible.
TONY JONES CEO, One Nucleus www.onenucleus.com
Technology is changing faster than at any time in history. Wearable technology for example, is facilitating the collection of ever more comprehensive data on health status, disease monitoring and adherence to prescribed medications. Never has the biopharma industry had access to such Real World Data. Data in itself is not the key however, it is what can be done with the data that is important in order to provide knowledge and evidence. The increased Real World Evidence doesn’t just apply to humans. Surveillance technology to monitor the spread of pathogens and microbiome studies to explore the relationship between a person and their gut flora are two areas that complement medical research and contribute to our understanding of what creates and maintains a suitable ecosystem to enable wellbeing. Much the same can be said of advances in agricultural technology and the food supply chain. Greater traceability, improved food standards and yield as well as environmentally sustainable production methods all have a potentially major impact on health and wellbeing. Research excellence in these areas via centres such as the Earlham Institute and John Innes Centre adds to the region’s power to investigate, inform and influence how we balance health, environment and economics in the future. Exerting the potential influence and economic impact of these different but complementary research fields is in no small way enabled by the region’s ability to attract and retain suitably world class talent in the non-scientific disciplines
The region is also fortunate to have a series of long-standing and collaborative industry networks such as One Nucleus, Cambridge Network, CW, AgriTech East and Cambridge CleanTech. These organisations, usually funded by member subscription rather than public money, can be effective conduits to the emerging regional government created initiatives such as the UK Innovation Corridor and Cambridge Norwich Tech Corridor that aim to bring local boroughs and councils together in order to join the regional dots. The interdisciplinary requirement in future success, the need for scale and the need to accommodate growth suggest such cross-regional coordination must be beneficial. If not to attract businesses into the connecting spaces in the short to medium term, the connectivity, infrastructure and potential to create suitable commuting possibilities for those attracted to work in the existing centres of excellence is a very practical and necessary achievement if we are not to stifle success in the region. A sign of others confidence in our region are the major investments and corporate deals into businesses here. There has been well in excess of £1Bn of private capital poured into the region over the past year and a half. Whether collaborations such as Microbiotica’s with Genentech, Mission Therapeutics with Abbvie and Crecsendo Biologics with Takeda or the significant financing events by CMR Surgical, Artios, Acacia Therapeutics or Nasdaq IPO’s by e.g. Bicycle Therapeutics, there are numerous signs of the maturing asset and company pipeline in the cluster. This in turn has driven confidence in real estate players also where we have seen very exciting investments from UK, USA, Asia and Europe into science parks and facilities. Discovering new medicines and devices, changing behaviour to improve public health and aligning local competitor regions for a greater good has always been challenging. Persistence, creativity and dealing with regulatory change are common characteristics among researchers, entrepreneurs and their investors. It is now encouraging to see such characteristics in our local government bodies and policy makers. A coming together of such attitudes, desire and common vision across public and private sectors perhaps indicates the future is very bright for the East of England, UK. It will be an exhilarating journey to a part of!
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It is not all about new medicines and devices. Much is spoken and written about what emerging challenges such as changing demographics, costs of healthcare and anti-microbial resistance mean for future health and wellbeing. Our region is primed to play a leading role on these aspects much like it has in the past centuries of addressing vital challenges.
TONY JONES CEO, ONE NUCLEUS
LIFE S C I E N C ES
LAB OF THE FUTURE CONGRESS An international congress bringing together leading pharmaceutical companies, research institutes and service providers to drive collaboration and innovation in the life sciences
pen Pharma Research, has announced the launch of an international congress: the Lab of the Future Congress. This major gathering will take place on the 13-14th of November 2019 at the Wellcome Genome Campus in Cambridge, UK.
LAB OF THE FUTURE For a full programme, please visit: www.lab-of-the-future.com
Bringing together a range of high-profile speakers, the Lab of the Future was set up to provide access to the people and resources for life science companies to continue thriving in a rapidlyevolving world. The event is supported by The Pistoia Alliance, the global, not-for-profit members’ life science organisation working to lower barriers to innovation in R&D through pre-competitive collaboration (www.pistoiaalliance.org). Key events will include a plenary session on the changing R&D landscape, and a panel on the role of technology as an enabler. Over 80 speakers have been selected to participate, including: Bryn Roberts, Global Head of Operations, Research & Early Development, Roche.
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Monika Lessl, VP Head of Corporate Innovation and R&D, Bayer. Veronique Birault, Head of Translational Medicine, Francis Crick Institute. Steve Martin, Head of Biopharm Discovery R&D, GlaxoSmithKline. Ian Churcher, Senior VP, Drug Discovery, BenevolentAI. In addition to these talks, a major exhibition will showcase the work from the key service companies in this space. The conference centre boasts a unique open-plan design, which will encourage the anticipated 250-300 delegates to engage in open conversations. Sponsors of the Congress to date include: Accenture, Thermo Fisher Scientific, CBRE, ZONTAL, Dassault Systèmes, Dotmatics, Avantor, Riffyn, SciBite, Synthace, ACD/Labs, Agilent, Digital Lab Consulting and L7 Informatics.
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Start-up mindset, scale-up capability One of the UKâ€™s leading campusâ€™ to support early-stage bioscience enterprise. Situated on a 430-acre parkland estate near Cambridge, world class research and business come together to promote innovation and strengthen links between academia and the commercial world.
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B r i t i s h B u s i ne s s B a n k
THE GROWTH OF LIFE SCIENCES IN EAST ANGLIA Life sciences firms are critical to the UK economy, generating at least £64bn every year and employing more than 23,000 people, and the continued growth of the sector is a key part of the Government’s Industrial Strategy. invest in new people, develop new products and enter new markets. A key factor in supporting the growth of the sector in the region is ensuring businesses have access to the right kind of finance, at the right time, to meet their growth ambitions. This lies at the heart of the British Business Bank’s objective to make finance markets work better for smaller businesses in the UK – and the Bank is currently supporting over £1.1bn of finance to more than 5,600 smaller businesses in the East of England. The UK provides a fertile ground for innovation to thrive, but life sciences businesses are capitalintensive and have a particular need for long-term patient capital investment to help them scale up successfully. In 2018, the Bank set up a new £2.5bn subsidiary, British Patient Capital (BPC), designed to enable such long-term investment in high-growth potential companies in the UK, and it made one of its first investments (of £9m) into the Dementia Discovery Fund, a specialist venture fund creating new medicines for dementia. The Bank’s Small Business Equity Tracker report, released in June, also reported that life sciences was the second largest technology subsector in terms of both equity deal numbers and investment values in 2018, with 86 deals worth £746m. Investment in life sciences was up 22% relative to 2017, although the number of deals remained the same.
he sector is also particularly important to the East of England, with a significant cluster of activity around Cambridge.
Boosting the region’s success is its businessfriendly environment, proximity to universities and access to finance. It also enjoys access to a deep pool of talent working in a sector that is keen to
Overall our research showed that the East Anglia region saw a substantial increase of equity investment in 2018: investment in smaller businesses in the East of England increased 118% from last year and this forms part of the bigger picture that saw the value of equity finance investment outside of London increase by 29% (£616m), to stand at £2.8bn. Cambridge’s cluster for Digital Health – the fifth largest in the country – contributed significantly to the East of England’s recent success in this area. British Business Bank-supported funds provide some good examples of where the right sort of funding at the right time has helped life sciences businesses in East Anglia grow rapidly using equity funding.
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Based at Rothamsted Research Centre in Harpenden, FungiAlert provides soil and water health screening, facilitated by its patented technology, SporSenZ - the first, in-the-field sensor which samples microorganisms in soil and water. Analysis of these samples alerts growers to the risk of infection before visible symptoms appear, leading to improved disease management strategies and decisions, increased yields, and improved soil-health. Founders Kerry Weaver and Angela de Manzanos raised £420,000 in a funding round led by Bank delivery partner Sussex Place Ventures – including £370,000 through the Bank’s Enterprise Capital Fund programme. This allowed the business to hire three new team members, purchase key equipment and undertake extensive field trials. After launching its first product in January 2019, the business needed additional finance and raised a further £350k in April 2019 to build an experienced sales team, support on-going product development research and to expand internationally. Including field trials, to date, FungiAlert has deployed more than 700 SporSenZ sensors. Also based in East Anglia is Exonate, a biotechnology company that develops drugs for the treatment of diseases of the back of the eye – specifically an eye drop for the treatment of retinal vascular disease, including Wet Age-Related Macular Degeneration (WAMD) and diabetic macular oedema. Exonate needed capital to help with research, optimise compounds, and proceed with a
pre-clinical safety and toxicity development programme before entering clinical trials in 2020. The company was able to raise £2.8m of equity angel funding, supported by funding from the Universities of Nottingham and Bristol and the British Business Bank-supported Angel CoFund. They are now firm advocates for angel investment, citing the fact that they were able to receive funds from individuals and organisations with real expertise in biotechnology as well as their backers being able to introduce them to potential partners and other future investors. To further understand the benefits of this sort of finance, businesses seeking angel, equity or other investment can access the British Business Bank’s Finance Hub – an interactive website dedicated to providing independent and impartial information on finance options for scale-up, high growth and potential high growth businesses, to build awareness of and confidence in finance options for smaller businesses. The Hub includes a simple six-step ‘Finance Finder’ that helps smaller businesses explore the options that could work best for them. The new site also features case studies and learnings from real businesses to guide businesses through the process of applying for growth finance.
PAUL SULLIVAN UK Network Senior Manager for East Of England, British Business Bank www.british-business-bank.co.uk
The Finance Hub, targeted at scaleups, sits alongside the Business Finance Guide, which covers smaller business finance options more widely. Businesses can learn about the many choices available at thebusinessfinanceguide.co.uk or follow the Guide on Facebook @TheBusinessFinanceGuide.
IN FRAST R UCT U R E A N D T RA N S P O RT F irs t E a s te r n Co u nt ies
STEP ABOARD Keeping the wheels turning on bus services across East Anglia is Steve Wickers, Managing Director of First Eastern Counties.
n this issue, Steve provides an insight into their business and reveals the reasons behind the continued growth in bus travel across the region.
A Norwich lad born and bred and a loyal canaries fan, Steve joined the bus industry over 30 years ago and has dedicated most of his career to working in the bus industry in the East of England. Steve began as a sales ledger clerk spending 20 years in various Finance roles ending up as Finance and Commercial Director. He then became Commercial and Operations Director for the Eastern Counties and Essex businesses before being promoted to Regional Commercial Director incorporating the Midlands businesses as well. After a successful term as Managing Director in Eastern Counties, his current role has been extended to cover the Essex businesses within First Bus. Around 25 million passenger journeys are made on their services in Norfolk, Suffolk and Cambridgeshire annually. Bus services which connect many major centres in the region including Norwich, Ipswich, Peterborough, the market towns
of Kings Lynn and Wisbech, plus the east coast resorts of Lowestoft and Great Yarmouth. “Over the last couple of years, the general UK trend has been of a decline in bus use,” explains Steve, “but year on year figures for 2018/19 for travel on Eastern Counties services have shown encouraging levels of growth in contrast to the national trend. Bus services in Norwich have benefitted from population growth and good levels of increasing employment in the wider city area. It is pleasing to see more and more people choosing to use the bus as their preferred method of travel around the county”. “One of our most popular routes is our excel service that runs between Norwich, Dereham, Swaffham, Kings Lynn, Wisbech and Peterborough, which is great for commuting, heading to school or college or simply to enjoy a day out exploring the region. “We have popular services that link Norwich with the coast, operating up to 8 times an hour all year round, and during the summer we run additional services in and around Great Yarmouth,
I N FRASTRU CTU RE A N D TRA N S PORT First E a ster n Co unt ie s
as well as open top services along the seafront accommodating the increase in demand of holidaymakers and visitors to the town. “We have invested greatly in improving our fleet and customer offering with the introduction of newer vehicles and state of the art ticketing systems, which have allowed us to be the first bus operator in the area capable of accepting contactless payments on board the bus. People can also buy their tickets on our mobile mTicket phone app. “We have strong relationships with our stakeholders and engage regularly with local communities who help to promote the advantages of using public transport. “You simply can’t underestimate how important bus services are within local communities, enabling people to get out and about in a safe, reliable and environmentally-friendly way. We are a company providing services to our local community – and what we deliver is very much led by our local workforce. “Recently, for example, we’ve expanded our services in and around Norwich, together with launching new services between Norwich and Bungay, and Norwich and Fakenham – both of which have proven to be really popular. “Our fleet in Norfolk and Suffolk consists of 260 vehicles, Norwich is the largest of our bus depots to which we have around 120 vehicles based. “We have recently expanded the site installing better facilities and processes, which now provides us with the infrastructure necessary to serve our customers better and in a more efficient way. “We’ve invested in better, more environmentallyfriendly vehicles and continued to develop the simple, ‘colour coding recognition concept’ for our routes in Norwich to make bus travel easier to use. We have a clear focus on the importance of providing high quality marketing and information about our services both in print and digital formats, aimed at both established and new customers or unfamiliar travellers. “Our newest buses have Euro 6 engines fitted, which are helping tackle air pollution in the city with near zero particulate emissions being emitted thereby meeting the highest Euro emissions standards. “Buses represent the best mode of road transport and road space to reduce congestion and air pollution in urban areas. “To improve the journey experience for our customers we train our drivers in ‘green driving techniques’ which has software that monitors driving standards covering events including; braking and idling, steering and acceleration, all with the intention of providing a smooth journey experience. “To help improve unnecessary emission output into the atmosphere, all of our vehicles switch off automatically when they’ve been stationary for 3-4 minutes.
“Simplifying the fares structure and offering discounts to loyal customers has also been a contributing factor in the growth we’ve seen. Weekly, monthly and annual tickets offer discounts for regular travellers, whilst our 10-trip ticket provides discounts for those who travel less often, but who still want to make savings. “We offer explorer tickets, providing unlimited access to all First Eastern Counties buses across Norfolk and North Suffolk, as well as High5 tickets for groups of up to five people travelling together, amongst other discounts. We also work with industry partners on making multi-operator tickets available in Norwich too. “Providing customers with more options on ‘how to buy their travel’ is another step forward and has been very well received. Customers no longer have to worry about finding change for a bus journey, they can buy their travel online, via their mobile phone or by making a contactless payment onboard the bus. “Communication and information provision is key in helping people plan their journey. With the technological advances in software and digital displays, we can now communicate using real-time journey information for customers, via a mobile app or electronic display boards. “Traveling by public transport can be extremely cost-effective and takes away the stresses and strains of driving (and parking) in a city or town centre. If a person hasn’t travelled by bus for a while, they will probably be very surprised at how bus travel has evolved with much improved comfortable seating, CCTV and free Wi-Fi, as just a few examples of the facilities on board. “Through working closely with partners across the region, some great work is being done to make bus travel more attractive and seamless for people. By improving the road infrastructure with clear, faster bus corridors into city centres, results show that improved reliability of bus services and quicker journey times can be achieved. It’s not necessarily just about creating bus lanes, but implementing schemes like creating better passing places, roundabout improvements, and traffic light phasing can assist the flow of traffic enormously.
STEVE WICKERS Managing Director, First Eastern Counties firstgroup.com/norfolk-suffolk
“Together with Norfolk County Council and Norwich City Council and other key partners, we are developing the Norwich bid for a share of the Government’s £1.2bn Transforming Cities Fund as strong as possible, as it aims to boost local economies through investment in public and sustainable transport. “In reality, we’re only at the very beginning of our journey; this is not job done. We’ll continue to invest in our services, listen to our customers and react to demand, increasing the frequency of services and expanding into new areas. We’re striving to make public transport the first choice for travel.”
IN FRAST R UCT U R E A N D T RA N S P O RT I ns t i t u te o f E x p or t & Inter n at ion al Trade
I N FRASTRU CTU RE A N D TRA N S PORT I nst i t ute o f E x p or t & I nter n at ion al Trade
OF EXPORT The more things change, the more global trade stays the same. A lot is being said at the moment about how the way we trade with the rest of the world is going to change significantly in the years to come due to Brexit.
IN FRAST R UCT U R E A N D T RA N S P O RT I ns t i t u te o f E x p or t & Inter n at ion al Trade
eaving the EU will no doubt change several aspects of trade for UK exporters – including the introduction of a lot of paperwork for companies to complete to continue to sell into Europe, as well as potential new tariffs should a ‘no deal’ occur. However, though Brexit creates a significant level of uncertainty, this uncertainty is as much a threat to the UK market as it is to European markets or elsewhere. One of the best ways of mitigating this risk is therefore to look to markets around the world where there is growth and relative stability. Research from HSBC estimated that 70% of future world growth will come from emerging economies while a report from the ONS showed that most of the UK’s fastest growing export partners for 2018 were also from emerging markets. Whatever happens with Brexit, the way in which we trade with several of these markets will remain the same. Indeed, the costs involved will probably be easier to predict than for the EU in the immediate future. The duty payable for importation to several emerging markets will remain at the ‘Most Favoured Nation’ rate lodged by the UK in that market under WTO rules.
Understanding how trade works will enable a more global outlook LESLEY BATCHELOR OBE Director General, Institute of Export & International Trade. Lesley is a champion of UK exporters, with a powerful track record in enhancing the export performance of hundreds of businesses.
For those 150,000 companies selling only into Europe presently, Brexit could of course have a significant impact on your costs and administrative processes. However, it’s not just Brexit that could have an impact. Rising protectionism around the world makes an increase in trade disputes between major nations – such as that which is occurring between the USA and China right now – more likely. If you are apprehensive about all this, then take solace from the fact that there are loads of businesses who have been exporting beyond the EU to less familiar and predictable markets for decades and we’ve been dealing with customs checks and piles of documentation without too many problems. Remember, global trade has been going on for a lot longer than the EU! As people who have being completing customs declarations, proving origin and looking through tariff schedules for several years, we can assure those of you who are new to this that it’s all perfectly doable, you just need to apply yourself to it. During this period of uncertainty, having an understanding that the processes of global trade will by and large remain the same is really important. At the Institute of Export & International Trade, we have a saying that ‘exporting is easy when you know how’. We really hope that you’ll take heed, because global trade will remain a source of opportunity rather than risk, as long as you take the time to do it properly.
Process is everything The processes of international trade – or at the least the mindset required to get to grips with them –are unlikely to change any time soon. You will always need to ensure that you stay on top of the documentation required to move goods over borders; you will also always need to know the tariff code for your product and the duty and taxes tracked by that code in the market you’re selling to. When looking to use a preferential trade agreement to pay lower duty, you will need to understand rules of origin in order to prove that the reduced tariff rate applies to the goods you are moving. Whatever the changes ahead, knowing how these sorts of processes work will equip you with the tools for successful trade overseas. You need to approach trade with a mindset of wanting to do it properly. If you don’t adopt this way of thinking then you risk delays at the border, potential fines and reputational damage. One of the big things we say to new exporters is that international trade should be viewed as an investment. Whatever’s going on between nations at a political level, you will always need to understand the market you’re selling to, do your due diligence on potential partners there and have a plan for how you can grow and sustain your business in that market. If you’re not sure how to do all this, or if you are daunted by documentary and legal requirements which you know little about at this stage, ask for help and take the time to learn. There is so much support out there – from Government to the Chambers of Commerce, to the training, qualifications and technical help that we provide at the Institute. We also recommend looking at our SME website, www.opentoexport.com as this provides you with introductory articles and webinars on all of the key processes I’ve mentioned. Using ‘Open to Export’ you can also complete an ‘Export Action Plan’ using an online planning tool on the site. This enables you to set yourselves actions along each step of your export journey, from selecting a market to delivery and documentation and helps you to establish what you need to learn and do in order to sell successfully overseas.
International trade is a world of opportunity Exporting is an investment and though there are some risky periods and challenges ahead, it remains a worthwhile one such is the opportunity it presents. International trade allows you to spread risk, reach new customers and, ultimately, increase your profits. As long as you get to grips with how international trade operates and do the work and research required for each market, global trade will remain a source of opportunity rather than a threat.
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IN T E RVI E W A n g l i a n Wate r
WORKING IN CUSTOMERS’ INTERESTS In this issue, Peter Simpson, Chief Executive Officer of Anglian Water, reveals how the company is tackling the challenges ahead, affirms their public interest commitment and pays tribute to his team.
eter has been Chief Executive Officer of Anglian Water Group since October 2013, previously before that he was Managing Director of Anglian Water from January 2010 and Chief Operating Officer from 2004. He was Chairman of Water UK from April 2012 to October 2013, and is a Past President of the Institute of Water. Peter is a member of Cambridge University’s ‘Programme for Sustainability Leadership’ Climate Change Leaders Group. This influences at a national, EU and global level to reduce carbon emissions, and to champion resource efficiency in water, energy and other natural resources. Also working with Business in the Community (BITC), Peter chairs the Water Task Force and is on the Place Leadership Team led by Steve Rowe at M&S. He also chairs their Regional Advisory Board for the East of England. Peter is a Chartered Water and Environmental Manager, a Chartered Scientist and a Chartered Environmentalist. “Anglian Water is geographically the largest water company in England and Wales. We employ 5,000 people and supply water and water recycling services to more than six million customers across the region we serve.”
The challenges ahead “Of the many and various challenges we face, the two most acute are a changing climate and a growing
population. Our region is not only one of the fastest growing in the country, it’s one of the driest, receiving on average a third less rainfall than other parts of the UK. “This becomes very real when we encounter the extremes of weather we’ve seen recently, such as the Beast from the East, followed by one of the driest summers on record. It’s vital that we develop the resilience to be ready for a future where these extremes become more common. “That’s why we’re investing to develop more resilient infrastructure, and committing to things like a further 22% reduction in leakage, despite already being the best in the industry. We’re also planning a comprehensive Smart Metering programme that will really help customers understand how much they use, and make savings. “Overall, our business plan for the next five years outlines a planned investment of around £6.5billion.
Standout moments “I’m immensely proud of our achievements, and over the last few years we’ve had some standout moments. In 2017 we were made Business in the Community’s ‘Responsible Business of the Year’. Hot on the heels of that we were crowned Utility of the Year in 2018, before becoming Water Company of the Year earlier in 2019. These awards are a testament to the ongoing hard work of our staff, partners and suppliers.
I N TE RVIEW A ng l i an Wate r
“It’s particularly pleasing to attract plaudits that reflect what it’s like to work here. For instance, being named Glassdoor’s Best Place to work for 2019 is especially significant because it’s based on reviews left by our own employees. “It’s definitely not all about awards though. I still take immense pride from the fundamental role we play, day in day out, helping our region grow and our environment flourish. We never lose sight of that, as it’s the most important reason we’re here.”
Our team’s contribution “Nothing we do would be possible without our team. I’m very grateful that I have a role where I can work with and develop people and teams in the pursuit of doing something meaningful, and where I can see the impact of what we’re doing.”
Creating an open culture “I believe it’s so important to create an open culture in any business, where people are allowed to be the experts at what they do and they’re given the freedom to do what’s right for our customers. Our industry moves at a fast pace. “We’re always looking for people with new ideas and transferable skills, who aren’t afraid to take on a challenge. And there’s always the opportunity for our staff to improve, develop their skills and try new things.”
Partnership working “Our approach to working with our partners has developed something of a reputation for its ability to deliver great results. It’s an approach to the creation of what we call ‘alliances’, bringing together teams from multiple suppliers to deliver programmes of work, that drives innovation and value, moving us away from the traditional project-by-project client and supplier relationships found elsewhere. “Best of all, these partnerships are long-term and enduring. In 2015, we committed to 15-year contracts with these businesses, and our alliancing model has been upheld across the industry as an exemplar way of working. Put simply, if we succeed, they succeed.”
Harnessing innovation “Innovation is crucial, and is something we’ve embraced with open arms. Frankly, some of the challenges we face are so substantial that if we’re not innovative, we don’t stand a chance of taking them on. “A great example of this would be our Shop Window project in Newmarket – it’s our innovation hot house, offering a real-world test-bed that allows us to trial the latest technology, systems and processes before rolling them out across the business. Crucially, there is clear path to adoption for successful initiatives. “So far, 114 partners have already delivered 110 projects within the Shop Window, and we’re always looking for more people to join us.”
Embracing renewable energy “Given that energy is one of our biggest costs, and climate change one our most acute threats, it’s
natural that we would look to develop renewables and reduce our carbon footprint wherever we can. We set ourselves industry leading carbon targets as far back as 2010, and earlier this year we championed an industry-wide agreement that will see all water companies target net zero carbon by 2030, 20 years ahead of the government’s target of 2050. “Specifically on renewables, we turn sewage into biogas and ultimately into electricity which we use to power our own sites and give back to the national grid – literally generating power from poo. We’re getting close to 25% of the energy we use coming from renewable sources, like bio-gas, wind and solar, and we’ve tripled the amount of renewable energy we produce in the last five years.”
Public interest commitment “The bar is set appropriately high for companies like ours – we provide an essential public service, and because of the way the industry is structured here, customers cannot choose their supplier. For that reason alone, we need to make doubly sure we are working in customers’ interests, and show that we are committed to continuing in that way.
PETER SIMPSON Chief Executive Officer, Anglian Water
“That’s why, in May this year, we led a programme of work that resulted in all water companies signing up to a Public Interest Commitment that reinforce our commitment to the communities we serve. It will see us tackle things like affordability, social exclusion, employment and environmental improvement – all things that go way beyond the provision of clean, fresh drinking water. “One of the most exciting pieces of work we’re engaged in at the moment is translating that national set of commitments into a social contract that resonates with our customers here in the East. We’ve done great stuff already in towns like Wisbech, and through our commitment to rid the region of problem plastics, but there’s so much more to do and I’m excited to see where it will take us.”
E N E R GY FOC U S BE E A ng l i a
WHAT THE LOW CARBON TRANSITION MEANS FOR LOCAL BUSINESSES This Summer has seen a marked shift in discussions around climate change targets.
Denny Bros recieves £20,000 grant from BEE Anglia
alk of Net Zero has moved from school strikers and Greta Thunberg to the UK being the first major economy to enshrine the ambition in law. In Suffolk, the county council has set a target of net zero emissions by 2030. While debate continues about what net zero looks like, and how rapidly it needs to be achieved, there is no longer any questions that it is going to happen. The CBI and British Chambers of Commerce were among a host of business organisations to welcome the government’s target, while calling for greater long term clarity in policy.
What will Net Zero mean for my business? In our day to day contact with businesses, we aim to provide the best up to date advice to inform their decisions. All of our advisors are completely independent; our only focus is to help businesses cut their energy costs, and transition towards zero carbon. That last aim might sound wildly ambitious to a small business dependent on energy for manufacturing, travel, heat, etc. but the world is already changing. The UK has recently gone 2 weeks without burning any coal for the first time since the industrial revolution, and the carbon associated with electricity generation has dropped by 45% in just the past 4 years.
Net Zero means replacing or avoiding fossil fuel use across our economy – and for any emissions that remain ensuring that an equivalent amount is removed from the atmosphere. In the UK, the Climate Change Committee bases the plan on continued growth in renewables, wide roll-out of heat pumps, electric or hydrogen-powered transport, and radically increasing industrial efficiency. Most of these changes are technological shifts that are available now, and will already bring additional financial benefits. Most businesses won’t get to zero carbon overnight; but they can take significant strides in that direction already. BEE Anglia has supported 800 businesses, from small B&Bs up to multisite manufacturers, with the average business identifying savings of £6,000 per year, that can be achieved entirely from proven technologies that have a short payback. With sustainability increasingly a factor in purchasing decisions, it makes sense to ensure you’re not going to be left behind.
What are the first steps that a Business should take to ‘go green’? Generally the first step should be to understand what your impacts are. It’s a cliché that you can’t manage what you don’t measure, but it’s rule
E N E RGY FOCUS
BE E A n g li a
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number one for greening your business. A simple carbon calculator like the one at http://www. greensuffolk.org/footprint or a more detailed site audit from one of our advisors will help to understand where your greatest potential is. Those will vary from business to business, but often opportunities will be quite similar within the same sector, so it is a good idea to look for any advice from reliable sector bodies. As a general guide some common areas to consider are: Lighting. If you haven’t installed LED lights, this will have an immediate impact, and is likely to have a very short payback. Many lighting companies will provide an analysis of the savings before you commit. Solar panels. The government Feed-in Tariffs have ended, but we still see a lot of businesses going this route. Especially if your daytime electricity usage is high the savings can stack up really quickly, and you’re insured against future energy price rises. And grants are available from BEE Anglia. Insulation. It’s not the most exciting answer, but if you’re paying to heat a room, you don’t want that heat to be going straight out the walls. Payback might be a bit longer than for lighting, but if you have poorly insulated spaces it will have a big impact on your footprint and often make for a more comfortable working environment. Electric Vehicles. Something we’ve only really started to see over the last couple of years, with the availability of models capable of going 180 miles between charges, but a rapidly growing sector of interest – Suffolk businesses can also benefit from support for the charging structure through www.pluginsuffolk.org. Consider what you buy. This will vary hugely by sector, but more eco-friendly alternatives are becoming available all the time, so it’s worth shopping around or speaking to your suppliers to see if they can offer greener options.
What others have done “Without the grant funding from BEE Anglia I wouldn’t have been able to purchase as many new vehicles all at once, knowing that the vehicles are much more energy efficient the fuel savings are immediate – it’s a win win situation! All the BEE Anglia team are so helpful through the whole process I would thoroughly recommend.” Mark J. Streeter, Managing Director, Courtesy Taxis, Norwich. 170 businesses have accessed grants totalling over £1m already, on everything from lights to cocoa grinders and Electric Vehicles to new windows. One of the recent recipients were commercial printers Denny Bros, in Bury St Edmunds. When they approached us they’d already managed to cut their footprint in half, but were looking to take the next step towards their own goal of carbon neutrality. With our support they were able to get a £20,000 grant towards new solar panels, cutting a further 10% off their footprint, and cutting their energy bill by over £10,000 a year.
BEE ANGLIA BEE Anglia is co-funded by the EU through the European Regional Development Fund and run by Suffolk and Norfolk County Councils specifically to help businesses in East Anglia to cut their energy use. For an informal chat about what we might be able to do to help you, speak to our team of impartial advisors on 01473 350 370 www.beeanglia.org
You can see what other businesses have done on website - www.beeanglia.org/case-studies/.
How can Bee Anglia help make local businesses more eco-friendly? Business Energy Efficiency Anglia (www.beeanglia. org) has already helped more than 800 businesses across Norfolk and Suffolk to get to grips with their energy use. All of our advisors are fully independent, and provide recommendations that are specific to your business. BEE Anglia has grants available for a range of technologies. With interventions of 20-40% of costs, going up to £20,000, we can help remove the final barriers to making the right changes in your business. We can also help you to gain a Carbon Charter (www.carboncharter.org) accreditation; independent verification of sustainable management approaches that can help you to win new customers and contracts.
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Inchcape.co.uk/bmw Fuel economy and CO2 results for the BMW i3 range: mpg N/A. CO2 emissions: 0 g/km. Electric Range: 193 miles. Electric energy consumption: 16.5-11.1 kWh/100km.
These figures are for comparison purposes and may not reflect real life driving results which depend on a number of factors including the starting charge of the battery, accessories fitted (post registration), variations in weather, driving styles and vehicle load. They were obtained after the battery had been fully charged. The BMW i3 range are battery electric vehicles requiring mains electricity for charging. The electric range and the electric energy consumption were determined according to a new test (WLTP). Only compare fuel consumption, CO2 and electric range figures with other cars tested to the same technical procedure. The Cooper Group Limited trading as Cooper BMW is authorised and regulated by the Financial Conduct Authority as a credit broker and is an appointed representative of Inchcape Retail Limited. We may introduce you to a selected panel of lenders for your funding needs and they may pay us commission for that introduction. This introduction does not amount to independent financial advice. Examples based upon Contract Hire Quotation including Road Fund Licence for 35 months and 8,000 miles per year. Excess mileage and condition charges may apply upon the return of the vehicle. Initial payment of 3 months in advance will be followed by 35 further payments commencing in month 2. Non-maintained. This quote is indicative and only valid for limited companies, soletraders and LLPs with car fleets of less than 50 vehicles. These quotations are subject to the vehicles detailed above being available and sourced from our preferred supplier. All rentals shown are exclusive of VAT which will be levied at the relevant rate, currently 20%. Offers available to business users only. All vehicles subject to this offer must be ordered and registered by 30 September 2019 (subject to availability). Figures are correct at time of publication and are subject to change without notice. All hiring is subject to status and available to over 18s in the UK only (excluding the Channel Islands and the Isle of Man). Guarantees and indemnities may be required. Hiring facilities provided by BMW Financial Services, Summit ONE, Summit Avenue, Farnborough, Hampshire GU14 0FB. Limited stock levels apply. Images for illustrative purposes only.
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E N E R GY FOC U S
REGION LAUNCHES UK’S FIRST ALL ENERGY INDUSTRY COUNCIL Collaboration will keep our tech charged!
All Energy Industry Council launch - L2R Andrew Harston from ABP; Chris Starkie from New Anglia LEP; Peter Aldous MP; Mark Goodall Chair of Council, Patrick Phelan from EEEGR and Stuart Smith from EEEGR
ew Anglia Local Enterprise Partnership has called for a new approach on the strategic delivery of future energy supply by leading on the creation of the UK’s first All Energy Industry Council (AEIC). At the Southern North Sea conference (May 2019), energy producers and stakeholders have formed the Council to boost local job opportunities, trade, investment, productivity and growth within the industry, delivering the National Industrial Strategy and Sector Deals. One of the key priorities for the Council will be to develop the offshore wind cluster in parallel with planned investment and development across the energy industry. Norfolk and Suffolk is fast becoming the UK’s epicentre for energy generation with its unique mix of renewable energy (and in particular offshore wind), gas and nuclear energy production. The opportunity is worth £59.4bn by 2040. This part of the country is the only place in the UK with all forms of resource extraction and
energy generation. It also has more large energy developments in the works than any other region. The Council - which has Government’s backing will be chaired by Mark Goodall, Senior Manager of Aker Solutions and is made up of energy producers, local authorities, business groups and a member trade body. Mark Goodall, Chair of All Energy Industry Council, said: “The East of England is pivotal in contributing to energy transition and decarbonising our sources and uses of energy. Never before has the future of energy been so high on the global agenda in terms of meeting demand while being mindful of climate change. We need to capitalise on our region’s richness in natural resources and be at the forefront of this transition. We have a huge opportunity and a responsibility to lead the way, hence the establishment of this Council and I look forward to working with this talented collective from industry, education and government to make it happen.”
E N E RGY FOCUS
Doug Field, Chair of New Anglia Local Enterprise Partnership, said: “Already 52% of the UK’s offshore wind power capacity is generated in Norfolk and Suffolk and Bacton Gas Terminal provides on average 30% of the UK’s gas supply. Our region is one of the busiest and most densely packed energy regions in the world. There is immense opportunity for economic and business growth with the right strategic direction and delivery. Bringing suppliers and stakeholders together to form the All Energy Industry Council ensures that we can maximise the opportunity and deliver the energy needs of the future.” Vattenfall’s Andy Paine is the Offshore Wind Industry Council Cluster Champion for East Anglia, part of the implementation of the Offshore Wind Sector Deal, the agreement between the UK government and the sector to maximise economic benefit from the industry. Joining the All Energy Industry Council, he said: “The All Energy Industry Council is a unique organisation in the UK reflecting East Anglia’s strategic importance to energy supply in the UK. As the Offshore Wind Sector Deal is implemented and works towards trebling UK sector employment to 27,000 by 2030, this is an ideal opportunity to collaborate and secure the potential of cross fertilisation in skills development and supply chain investment. The prize across all sectors is significant and it’s important that East Anglia does not miss out.” Graham Hacon, CEO of Great Yarmouth-3sun Group, said a strategic approach to skills training was key to future-proofing a workforce to serve the energy industry. His company had spent more than £3 million in the last two years on training new entrants into the offshore wind industry, exmilitary officers, unemployed people and retraining professionals for the new industry. Mr Hacon said: “My ethos has always been to provide employment for local people to service an industry growing in their region that is crying out for an ever-expanding pool of skilled workers to meet its needs and maintain the UK’s position as world leader.” Simon Gray, CEO of the East of England Energy Group (EEEGR), said: “EEEGR is delighted to form the secretariat and trade representation element of the AEIC and we look forward to working with stakeholders across all energy sectors and other relevant groups in ensuring that our region continues to provide the energy to power the nation. We want to ensure that we have the skills, competencies and supply chain opportunities for businesses across the area for many decades to come.” New Anglia LEP will be co-developing a Local Industrial Strategy with Government, which will have a strong focus on the region’s all energy expertise setting out how the region can continue to assist with tackling the Clean Growth grand
challenge. It will collaborate with key national stakeholders such as BEIS, Catapults and Industry Councils (eg OWIC and NIC) to ensure that the cluster is delivered in alignment with key market opportunities such as the Offshore Wind and Nuclear Sector Deals as well as the Oil and Gas Authorities (OGA) Vision 2035.
UK’s leading offshore wind sector Norfolk and Suffolk is home to UK’s leading offshore wind sector and produces a total of 4GW. This is more than half of the UK’s current 7.5GW installed capacity. The growth capacity in operations and development off the coast of East of England is 14.5GW. This means that the region on its own could deliver 50% of Government’s target by 2030 with the right investment. Government published its targets in the Offshore Wind Sector Deal which was launched in Norfolk and Suffolk in March (2019). The growth opportunity could create more than 6,000 well-paid skilled jobs by 2032.
Developments: East Anglia One windfarm is being built by ScottishPower Renewables and will be one of the largest in the world when finished in 2020. Norfolk and Suffolk Offshore Wind Cluster brings together the biggest names in the industry, including ScottishPower Renewables, Equinor, Orsted, Innogy and Vattenfall with the area’s ports, local authorities, business groups and educational institutions. East coast ports are the UK’s leading offshore energy ports and have emerged as strategic centres for the offshore wind sector. Approximately £11bn of development and capital expenditure has been invested in constructing offshore wind projects in the region, with the 971 operational turbines requiring ongoing annual operational expenditure of around £253m. Full build-out of the projects in construction and development will require an additional £22bn in capital expenditure and bring the total annual operational expenditure to £550m. The East of England is the closest UK region to the four high certainty growing European export markets of the Netherlands, Belgium, Germany and Denmark, where an additional 37GW of offshore wind power will be generated by 2030. Bacton Gas Terminal provides on average 30% of the UK’s gas supply. If approved, EDF’s Sizewell C is expected to put at least £200m a year into the regional economy during peak construction and £40m per year during its 60 years of operation.
E N E R GY FOC U S
EAB Magazine - Summer 2019 - EBM Ad opt3.indd 1
E N E RGY FOCUS
Haven Powe r L td
FOR SUSTAINABILITY SUCCESS, GET YOUR PEOPLE INVOLVED In our last edition, Ipswich-based electricity and energy services provider Haven Power discussed how switching to renewable energy is an easy first step for businesses starting their sustainability journey.
his time, the company shares ideas about getting your employees involved, and the resulting benefits.
Going green – from the bottom up The actions needed to “go green” can help a business achieve its corporate social responsibility (CSR) goals, improve market perceptions, and even add to the bottom line. Companies such as Marks & Spencer and Unilever have shown that sustainability delivers commercial benefits. In 2017 for example, the latter’s ‘Sustainable Living’ brands accounted for 70% of its turnover growth and grew 46% faster than the rest of the business. While CSR achievements, positive PR and profitability are all – potentially – within range for most organisations, you’re far more likely to succeed with sustainability if you engage your employees. Paul Polman – once Unilever’s CEO – wrote an article in the Stanford Social Innovation Review describing how to engage staff and create a sustainable business. Linking your sustainability agenda to your purpose is one of his ideas, and something that Haven Power believes in. The company’s commitment ties into the purpose of parent company Drax Group: to enable a zero-carbon, lower cost energy future. Polman’s article (Google it for an enlightening read!) also suggests making everyone within your organisation a sustainability champion, and working alongside staff to create sustainable practices. Expanding on this theme, he encourages companies to make it clear that “funding for sustainability projects is available and readily applied when an employee develops a good idea.”
Sustainable solar and storage Having used staff suggestions to save just under 100 tonnes of carbon in 2017, Haven Power understands the importance of employee participation and engagement. The company’s 2018 sustainability drive included installing energy-efficient LEDs throughout its headquarters, which led to a reduction in daily electricity consumption of around 15%. And for 2019, the electricity and energy services supplier is implementing an even more ambitious sustainability strategy. In Q1, the company installed almost 500 square metres of solar panels on the roof of its premises and has since generated 27,680 kWh of renewable electricity. This is enough to power another of the supplier’s sustainable assets – a BMW i3 electric pool car – for a trip of 187,027 km (116,213 miles). The
business has also installed onsite charging points for the i3, and for use by employees and visitors driving electric vehicles. Of course, Haven Power has used some of its selfgenerated electricity for the i3 – and other immediate needs. What’s more, it’s stored some of the power within its new battery unit, for later use. It’ll soon be possible for the company to sell its solar-generated renewable power to National Grid too, and earn extra income to help offset the initial investment. Paul Sheffield, Chief Operating Officer of the Customers business within Drax Group, said: “By turning the Haven Power office into a truly energy efficient building, we’re reducing CO2 emissions by over 47,000 kilograms a year – the equivalent of taking 33 average-sized cars off the road. The company offers similar services to its business customers, so they can save money, take more control of their energy, and reduce their carbon footprint.”
HAVEN POWER LTD If you’d like to transform your business by adopting a sustainability agenda, or even by switching to renewable electricity, get in touch: email@example.com www.havenpower.com
And next… Encouraging people across your business to get on board with sustainability takes time and effort. You can make things easier by linking your purpose to a sustainable future, involving staff in your planning, and backing your employees’ ideas. In the last article in this series, Haven Power will look at the future of sustainability and consider the potential impact of technology and energy market changes upon your organisation.
SUSTAI N AB I L I T Y
C a m br id ge J ud ge B u s i nes s S cho ol
S U STA I N A BILIT Y
C ambr id ge J ud ge B u siness S cho ol
BUILDING A CIRCULAR ECONOMY Few days go by without references in the media to sustainable business and the circular economy, but whatâ€™s meant by these concepts, how do we implement them and are there tensions implicit in doing so?
SUSTAI N AB I L I T Y
C a m br id ge J ud ge B u s i nes s S cho ol
ho better to ask than Dr Khaled Soufani, Director of the Circular Economy Centre (CEC) at Cambridge Judge Business School and fellow at Clare Hall College, University of Cambridge. In addition to his work on the circular economy, Khaled’s research interests include a wide range of economic, financial and business topics including financial management, corporate restructuring, mergers and acquisitions, private equity, venture capital, family businesses, small and medium-sized enterprises (SMEs). His research is widely published in top journals such as The Harvard Business Review, California Management Review, Thunderbird International Business Review and the Stanford Social Innovation Review.
The World Economic Forum, EU, The Organisation for Economic Co-operation and Development (OECD) and the Institute of Directors have all cited, published or included his work in their reports.
The circular economy “There are different definitions to a circular economy model, but they all relate to using as little resource as possible for as long as possible, and to extract as much value from these materials, components, and elements by implementing innovative approaches in reusing, recycling, remanufacturing, and repurposing. “I define the circular economy in the context of economics: the efficient and optimal allocation of scarce resources in a way that economic and
S U STA I N A BILIT Y
C ambr id ge J ud ge B u siness S cho ol
business value can still be extracted by using as little natural capital, resource or material as possible for a longer period. “It is important to establish that a circular economy model contributes to achieving sustainability, where the latter is about avoiding overusing or depleting natural resources in order to maintain a healthy and naturally vibrant ecosystem. “We need to think about the air we breathe, the water we drink, the soil we use to grow our food and the energy we consume. All of these are or will be over-utilised by using a linear economic and business model of extracting, manufacturing, consuming, and then disposing of waste in landfills or the oceans. It is time to think about a more sustainable economic and business growth model that takes into consideration natural capital and the planet’s scarce resources.”
Sustainable business “A sustainable business is one that includes in its mission a commitment to achieve an overall strategy that produces a product or service which minimises the negative impact on society and the environment. The point is to contribute to avoiding the depletion of natural resources and produce environmentally friendly products and services. “We can differentiate between a sustainable and a non-sustainable business through their impact on society and the environment. The more positive the impact is, the more sustainable the business is considered and perceived. “There are tensions implicit in our implementation of these concepts, when procuring locally isn’t consistent with resource efficiency, or when buying a supply that is more sustainable or green may involve a long journey. In order to deal with such tensions, it is important that all businesses in the supply chain subscribe to the concept of a sustainable business model, as this will help identify the suppliers with the most sustainable solutions locally or internationally. Once the concept of sustainable business is part of the supply chain and the value chain, it then becomes the norm for business practices and conduct.
The role of innovation “It is important for businesses to explore adopting a circular economy model, by investing in innovation and new ideas that follow a ‘circularity by design’ approach. It is important for businesses to increase their awareness about sustainability in general and a circular economy model, and then inform themselves more on the implementation and impact of such a model. “Businesses should continuously update their understanding of the market in which they operate in by innovating on product, service, and process. The market is increasingly aware of the need to have sustainable solutions and output, so not considering such circularity would be a mistake.”
Looking forward “We’ve made significant progress in making businesses and individuals think about the circular economy, but we have a lot of work to do over the next decade and beyond. Recent research estimates that over the next 15 years the circular economy is likely to be worth $4.5 trillion, and the European Union has already pledged 5.5 billion euros in funding for waste management alone. “So how do we further raise awareness of this exciting new model? Research projects and conferences are one way, as shown by the excellent reception of the InnoFrugal UK conference held this spring at Cambridge Judge Business School, which brought together managers, entrepreneurs and academics from throughout Europe to share best practice and discuss new innovations. There are also joint projects such as the Creative Circular Economy Approaches to Eliminate Plastics Waste initiative, which the Circular Economy Centre at Cambridge Judge is taking part in as part of a wider Cambridge consortium.
“The first priority of a business is to create value for all the stakeholders of the business and not only the shareholders. Businesses, in general, are interested in attaining more growth, development, profitability and financial value. These are achieved when the market and customers are creating demand for the product or service produced by the business.
“While there is plenty of published research with relevance to the circular economy, but it is scattered among individual fields such as macroeconomics, microeconomics, climate change and other disciplines. So we need to do a better job of coordinating this research into a more disciplined approach linked directly to the circular economy, as this will create the greatest impact. Areas ripe for such a coordinated approach include the impact on consumers, and how the circular economy will affect regulatory policy in decades to come. We are proud of what we’re doing at the business school on the circular economy, but we need to link more closely with other departments such as economics, engineering and industrial design, in Cambridge and beyond.
“We are seeing that customers and the market are increasingly interested in the environment, and thus are demanding products and services that are environmentally friendly and will have a less negative impact on the ecosystem.”
“I’ll end it there, but the circular economy – as reflected in its name – really has no beginning and no end: our need to reduce, remake and recycle is a continuous journey that will define our relationship with the planet forever.”
DR KHALED SOUFANI Director of the Circular Economy Centre (CEC), Cambridge Judge Business School Khaled’s research interests include the circular economy and sustainable economic growth and innovation, amongst other economic and financial topics. His research is widely published in top academic and practitioner journals such as The Harvard Business Review, California Management Review, Thunderbird International Business Review and the Stanford Social Innovation Review. The World Economic Forum, EU, OECD and the Institute of Directors have all cited, published or included his work in their reports.
IN T E RVI E W
DJ V B o u t ique I p s w ich
TALKING SHOP Quite a few of us have considered founding a business, but not all of us take the plunge. In this issue, business owner Mandy Errington, reveals the steps she took in founding her concern and how we can make town centres more attractive. people and it could cloud your vision. My dedicated business advisor was absolutely brilliant, pointing me in the right direction so that nothing was missed, it would have been much harder without this level of support. “You have to be prepared to roll up your sleeves and throw yourself into it, to have any chance of success. Starting a new business is demanding. You don’t anticipate how many hours it will take up or the barriers you’ll encounter – you have to be committed.”
Point of difference “First opening in 2012, we initially sold designer preloved clothes, but it wasn’t proving successful, we changed the dynamic later on and since then sell a carefully curated selection of unique fashion lines. In order to be successful in business, you have to have a point of difference, ours is that we offer styles that generally can’t be found anywhere else locally. We also deliver bespoke services exclusive to DJV. “We also offer styling and make-up advice, so that people come to us for more than a product. Our styling packages, which can be booked as a group or on an individual basis, provide advice on your optimum colours, assess body shape and include makeup application and refreshments. Making people feel special is what it’s all about. We strive to build a relationship with our customers so they make us a destination and return to us time and again.
fter a succession of promotions, Mandy became Head of Marketing for the East of England Co-op, where she was in charge of their overall marketing strategy for 7 years. Mandy possesses 30 years of retail and marketing experience and eventually chose a different path, founding DJV Boutique in Ipswich which has been trading for 7 years. “Feeling it was time for a change, I began to explore the business opportunities open to me, retail became a strong contender because, in addition to my professional experience, I’d always been told I had good fashion sense. “I saw a unit and took the plunge – rushing in a little bit, but I had a business plan and I’d sought advice from independent consultants. Always seek guidance before setting up a business, but be judicious about who you ask, ask too many
“As well as the shop, we offer online and telephone ordering services, occasional late night openings and special events, in order to provide more convenience for our shoppers. It’s having these different facets that keeps us in business. We are looking to diversify further in the future and organise more special events. “Taking part in community events and expanding your network is important too. We work alongside other retailers and participate in local fashion shows. We each have a trademark style, offering something different which complements each other. As local, independent retailers we are supportive of one another, recommending each other’s services. “In addition, I co-host larger events, to support a nominated local charity and I mentor young people, which I find rewarding. I‘m also a Board Director for the East of England Co-op, which is invigorating, it’s great to work with like-minded people and to be involved in another role – you see your own business from another perspective.”
I N TE RVIEW
DJV B o ut iq ue Ip s w ich
Creating a brand “When it comes to creating your brand, keep it minimalist, legible and avoid too much text. If your brand is simple and has an impact, it’s less likely to date. Never choose what is ‘in’, go for longevity. I used a local Creative Marketing Agency - Bluesky bluesky-co.com (in Mendlesham, Suffolk) for whom I’d worked, so I knew their work and reputation was excellent! Using a professional freelancer to create your brand can also work well. “In terms of marketing, establishing who you are is key, find your message and clearly communicate it on a platform that suits your market. You want a balanced marketing mix – with a strong online and social media presence, but with regard to the latter, be careful to choose the right place for your audience. Don’t bombard your customers with too much information, as it can be off-putting. “People want to know the person behind the business, so tell your story and expand your network. Once people know you, they’ll buy into you, writing blogs is a great way to begin. “In autumn 2018, we moved into larger premises closer to the town centre and took the opportunity to rebrand and relaunch, as well as relocate. We’ve been able to expand what we do and become a little edgier too. “Although we have larger premises, we never stockpile. Carrying one or two of each item, means our range is more exclusive, which tends to encourage a purchase. If people see you have lots of a single item, they know they can come back for it.
Location is key “Research an area thoroughly before choosing a location. You need to look at both the competition and the contribution you could make. The right competition can be helpful for your business, at the moment, our shop is located in an area with a good mix of independent shops and businesses. We’re also fortunate to benefit from footfall to our shop from the car parks nearby.
People want to know the person behind the business, so tell your story and expand your network. Once people know you, they’ll buy into you, writing blogs is a great way to begin.
“You have to be pragmatic in business. Regularly review your progress and your business plan. Don’t be afraid of change, don’t hesitate to pull something that’s not working and do fill the niches that you find. Look at your areas of growth and develop these.
“It’s a challenging time on the high street. Some people feel it’s not worth coming into town centres any more. We make our shop a destination so people come in specifically to see us. “Having faith in our town centres is important. Presentation is crucial, town centres need to be kept clean and attractive. Seeing one or two more fashion brands in Ipswich, like Zara, would help too, as they would be a draw for people. The levels of rates, rent and parking charges also play a part in making town centres appealing to retailers and their customers. I want to see people dwell here, so they shop and stay for a meal, spending a few hours in the town centre.”
“I checked what plans lay ahead for the area around my shop. Luxury flats are planned for the space above my retail unit in a former department store, and a school is planned to open opposite, so there’ll be even more people passing by in the future.
“Before making a full commitment, I visited the shop a number of times and got to know the neighbourhood, familiarising myself with the shops and their clientele. I also spoke to respected local business owners about their experience of setting up a business in the area.
MANDY ERRINGTON Founder and owner, DJV Boutique DJV Boutique, 10 Cox Lane, Ipswich IP4 1HT 01473 404592 djvboutique.co.uk
“East Anglia is a great place to live and work. I particularly love Ipswich, where I grew up. There are so many attractions here, from a plethora of cultural events to beautiful architecture. The waterfront area has become a firm favourite of mine. I’d encourage people to get out and about exploring more of the town, it has a lot to offer.”
TA L E N T AN D ACQ U IS IT IO N H um a n C a pi t a l De par tment
IS TALENT ACQUISITION A BARRIER TO GROWTH IN EAST ANGLIA? Talent is sometimes defined as the top 20% of the workforce; those that are contributing most to the organisation’s success [80/20 Pareto Principle] but I rather believe that all employees should be making a contribution to business or organisational success and therefore all should be regarded as talent.
s Bill Shankly, the famous Liverpool Manager once said, “If you’re not interfering with play what are you doing on the pitch?” In the world of work “If you’re not contributing to the organisations success why is the business employing you?” East Anglia has a growing population of approximately 6.15 million people and a Gross Domestic Product (GDP) of €202 Billion [Eurostat, 2018], representing 9.3% and 8.4% of the UK population and GDP respectively. Unemployment is one of the lowest in the UK 3.9% and below UK average of 4.4% [2017 figures], and whilst much of the region benefits from its proximity to London
it has its own economy; somewhat reliant on services including financial services sector, it is also active in Manufacturing, Agricultural [and related sectors such as food processing and cold storage], IT Software & Bio-Pharm have hubs of Cambridge, with its strong research heritage, and creative and digital industries and a vibrant small businesses sector in Norwich. More investment is needed to improve infrastructure including rail, road & broadband. Some of our largest employers are in agriculture and food processing which are heavily reliant on migrant workers. While in the high skilled specialist occupational such as; IT, AI Software &
TA L E N T A N D ACQ U I S IT ION Hum an C a pi t al De par t me nt
Bio-Pham, employees tend to be highly educated, and more able to move with work opportunities beyond the East Anglia region. In the current economic environment, employees, especially the most talented employees, with sought after skills, have a choice. It is not a surprise then, that some employers across the region struggle to recruit and retain talent. This undoubtedly hinders business growth as it is acknowledged that people are an organisations greatest asset and contribute to organisational success.
Employer Response Employers struggling to attract and retain talent might respond to the challenge of finding suitable talent in a number of ways; 1. The first response is to poach talent from a direct competitor. Most employers seek to recruit an employee who has done exactly the same job from a direct competitor as this is perceived to be the least risky option and the person should require minimal training but need to think outside the box. 2. Employers might try to identify and recruit from a wider pool of candidates. This might mean stretching the geographical boundaries – searching in a wider area – or being more flexible in their recruitment criteria – could someone from the Nuclear industry have transferable skills and cultural mindset to adapt to the Aerospace industry for example? 3. Employers might choose to “offshore” work, or in other words have the work done in another location [which could be another part of the UK or overseas], where the talent is more abundant, and the business environment more favourable. 4. Employers might be able to automate the work using robotics or artificial intelligence so that less talent is needed. We are seeing this increasingly with large distributors such as Amazon and Ocado using robotics in highly automated warehouses. The Vauxhall Luton Van factory, which I visited recently uses robotics and the production line is quite automated, although using teams of people. While companies like Uber are using technology to improve the customer experience. 5. Develop own talent – this tends to be the least popular option; however, some organisations believe in investing in their staff and tend to be good at attracting and retaining employees. Companies with Apprenticeship and Graduate Development Programmes demonstrate commitment to “growing your own”. Essential in attracting talent is consideration of your “employer brand” – “why would someone want to work for you?” It is much more than money. Employers need to differentiate themselves in the labour market, in the same way as they
differentiate their products or services, enabling them to recruit, retain and engage the right people. The employer brand needs to be consistent with the business brand and in the best examples [such as; G’s Fresh – one of the largest employers in East Anglia] is a consistent & joined up message communicating mission, vision and values. It is important that the job role is defined in terms of job description and person specification or role profile. Website job-boards and creative recruitment companies can make it easy to register interest in a position at the click of a button, but this can mean that candidates are not very committed and choose not to pursue their “application”. At interview stage companies need to consider the interview process & structure linked to employer brand. It is important to share information about the organisation as well as the job role and be realistic about what the organisation can offer. This is part of the psychological contract [or unwritten agreement] between employer and employee and critical that these “promises” are adhered to. We have worked with businesses in the region on a range of projects including helping a technology company to define their brand and story - it was a great compliment to hear from an applicant that the recruitment process compared favourably to that of industry leader Virgin Media. While in the catering sector we were able to host a “BakeOff” style event to recruit chefs for a growing hospitality business. Testing skills maybe appropriate and use of psychometric and diagnostic assessments may also be useful in providing additional insights into behavioural preferences and higher-level knowledge and understanding. You might also consider recruitment events and use of Assessment Centres – using a variety of test and exercises in a group setting to gain insights into how candidates behave and interrelate.
PETER LAWRENCE Founder & MD of Human Capital Department. www.humancapitaldept.com
The final piece of the recruitment process is pre-employment screening. Most commonly this means reference checks, and right to work checks but can also mean criminal record checks, social media screening, credit checks, educational and credential verifications, DVLA checks, & public safety verifications. With new GDPR regulations it is important for to identify whether there is a legitimate interest in running a check, and whether the check is proportionate. The current low unemployment and stable regional economy means that employees, especially those regarded as talent are in demand. Some organisations in East Anglia are finding it difficult to recruit and retain key employees which is an impediment to growth. Employers need to consider their existing talent pool and seek to grow and develop their own people as an alternative to external recruitment.
TRAI N I N G AN D ED U CAT IO N
A p pre nt ice s h i p s , E duc at ion and S k i lls F und i ng A genc y
TRA I N I N G A N D E D U CAT ION
A p prent iceships , E duc at ion and S k il l s F unding A ge nc y
HEADING FOR A HEALTHY FUTURE We’re just over halfway through the year and it’s amazing to see support for apprenticeships continuing to grow.
ur latest figures show 84,720 people started an apprenticeship between January 2019 and March 2019 – proof that more people are recognising the benefits apprenticeships offer. It’s also fantastic to see that over 65% of apprenticeship starts between that same period were on our new style higher-quality apprenticeship programmes known as ‘standards’- designed by employers so apprentices learn the skills they need. This is great progress and shows that our reforms to apprenticeships are having an impact. Apprenticeships are now much improved. they are longer, higher-quality and with more off-the-job training and a proper assessment at the end. They are offering people of all ages and backgrounds a high-quality route to skilled employment with the option to train at every level in a range of exciting professions like aerospace engineering, cyber security, teaching, law, nursing, and fashion. I previously wrote about how our apprenticeship reforms have helped to transform businesses and nationally we are seeing more and more employers investing in apprenticeships including Greene King, Norfolk County Council and the NHS. It is good news too that employers across East Anglia are also embracing the benefits apprenticeships bring to their workplaces, with over 21,300 apprenticeship starts in total (including those on our new higher-quality apprenticeship standards) in the East of England region in the first half of 2018/19. The Levy is playing a key role in helping to create long term sustainable funding for apprenticeships. It has given employers of all sizes the flexibility to provide their staff with a range of training opportunities. By 2019-20 the funding available for investment in apprenticeships in England will have risen to over £2.5 billion, double what was spent in 2010-11 in cash terms. Since, the introduction of the Levy has supported over almost 313,000 people to start their apprenticeship journey. We recognise that employers want and need flexibility. Following feedback, we have introduced more flexibility to the levy rules. so that levy paying employers can now transfer up to 25% of their funds to smaller employers. This move will help give smaller businesses the opportunity to invest in
training opportunities for their staff. We work with a range of partners including the Federation of Small Businesses and the British Chambers of Commerce to help ensure employers of all sizes are aware of the amazing apprenticeship opportunities available. We are also working to move non-levy paying employers onto the award-winning digital apprenticeship service which will give small and medium sized businesses a greater choice of quality training providers, and the opportunity to have more control over apprenticeship training decisions for their business. We will continue to work closely with employers of all sizes to make sure they can take advantage of apprenticeships in a way that works best for them and so we are generating the skills that individuals need to progress and that will also help us drive increased productivity. We had a record-breaking National Apprenticeships Week this year too, with over 1250 events across the country. We are also developing a new leader board of top apprenticeship employers– the new rankings will be independently judged and published annually and will rate the Top 100 large apprentice employers as well as the top 50 SMEs. But while things have greatly improved, we know that outdated and ‘snobbish’ attitudes to technical and vocational training are still putting people off apprenticeships which means they’re missing out on great jobs as well as higher salaries. Since launching our new ‘Fire It Up’ campaign and [website] earlier this year – which aims to raise awareness of the huge variety of apprenticeship options available for people of all ages and backgrounds.
KEITH-SMITH DELIVE Keith Smith, Director of Apprenticeships, Education and Skills Funding Agency
I am very proud of the progress we have made. The evidence is clear – apprenticeships improve businesses and transform people’s lives, but there is still more to do. We need more employers of all sizes and people of all ages backgrounds to embrace apprenticeships. So, do please take a look at our new website www.apprenticeships. gov.uk it provides lots of helpful advice and you can find out about all the great apprenticeship opportunities available.
TRAI N I N G AN D ED U CAT IO N T he O p e n U ni ve rs i t y
THE OPEN UNIVERSITY – THE HIGHER EDUCATION PARTNER OF CHOICE FOR BUSINESS In April 1969, The Open University (OU) received its Royal Charter and the vision of a university that would open up education for all, was finally brought to life – largely due to the personal determination of the then Prime Minster, Harold Wilson and the commitment of his Minister for Arts, Jennie Lee. programmes allow employers to draw upon apprenticeship levy funds to develop both new and existing staff. Milton Keynes University Hospital NHS Foundation Trust is working with the OU to run a degree apprenticeship programme to help it deliver digital transformation. Robson Grant is boosting his career prospects through the Digital Technology Solutions Professional Degree Apprenticeship. “The apprenticeship is very flexible. In two and a half years when I finish my apprenticeship I will be in the perfect situation,” said Robson. “I would recommend The Open University to pretty much anyone no matter who they are, or how old they are.”
ased at Walton Hall in Milton Keynes, the OU extends across the four nations, with alumni stretching over 157 countries across the globe. Since 1969, more than two million people have come through the OU’s virtual doors. From 24,000 in the first intake in 1971, the OU now has over 174,000 students.
THE OPEN UNIVERSITY openuniversity.co.uk/skills -england
No prior qualifications are needed for most OU courses – widening access to higher education to self-motivated and determined people who want to progress in their career. The University has a strong pedigree and heritage in working with employers to re-train and upskill staff – making the OU a key partner for employers looking to address skills gaps. The University currently works with almost 2,500 organisations who sponsor staff through their studies. The OU’s flexible, blended learning is the perfect model to address recruitment and retention challenges, such as the shortage of NHS nurses. The Returning to STEM programme gives those returning to STEM-related careers the opportunity to prepare for employment around their current circumstances. An impressive 78 of the FTSE 100 companies have sponsored staff with the OUas it continues to play a key role in a wide range of sectors. Since 2016, the University has offered higher and degree apprenticeships. These work-based
Deputy Head of IT Applications, Ian Fabbro said: “The apprenticeship scheme allows us to employ someone like Robson who can come in, get an education from the OU, and start providing value straight away. It’s something that previously we would never have been able to do.” Joe Harrison, Chief Executive added: “We want to train professionals as Milton Keynes grows as a place over the next 20 to 30 years. Getting people into work, experiencing what happens day-to-day in a hospital whilst they’re learning, is a fantastic opportunity both for the individuals and also for our hospital, as we attract and retain the best possible staff.” Management skills are another important area addressed by degree apprenticeships. Tony Sleight is a team manager based in Milton Keynes working for children’s charity Barnardo’s. He is enrolled on the Chartered Manager Degree Apprenticeship programme. “I’ve already seen an impact of studying with the OU in my own skills as a manager, said Tony. “People within the team have commented on my progression and they’ve seen a change.” Steve Woolcock, Head of Employment, Training and Skills at Barnardo’s explained: “We’re a national organisation, we’ve got staff right across the United Kingdom and we really needed a partner who could work alongside us, understand our needs, understand where our staff were and how they work, and provide the degree apprenticeships as part of that.”
TRA I N I N G A N D E D U CAT ION T he O p en Uni ve rsi t y
68% of organisations in England
said they had difficulties recruiting for a role because candidates did not have the skills required The Open University’s 2018 Business Barometer
Invest in your workforce and bridge skills gaps with The Open University’s Higher and Degree Apprenticeships: • Chartered Manager Degree Apprenticeship • Digital and Technology Solutions Degree Apprenticeship • Healthcare Assistant Practitioner Higher Apprenticeship • Registered Nurse Degree Apprenticeship • Nursing Associate Higher Apprenticeship • Laboratory Science Degree Apprenticeship • Police Constable Degree Apprenticeship • Social Worker Degree Apprenticeship
The Open University is incorporated by Royal Charter (RC 000391), an exempt charity in England & Wales and a charity registered in Scotland (SC 038302). The Open University is authorised and regulated by the Financial Conduct Authority. © 2019 The Open University.
TRAI N I N G AN D ED U CAT IO N
C a m br id ge Uni ve rs i t y O f f icers ’ Tra i ni ng Cor p s ( CU O TC)
PREPARING LEADERS FOR THE CIVILIAN AND BUSINESS WORLD I have the had the privilege to command Cambridge OTC since I took over in September last year. clearly desirable and transferable skills. Through a combination of military, adventure training and sport/social events, Cambridge OTC develops leaders over the course of their degrees. Banks, such as Morgan Stanley and Barclays are now realising the potential of this trained talent pool and are seeking strategic relationships with the Sandhurst Group. I have asked three of my cadets to provide some vignettes of how their experiences of the OTC has given them the edge of their contemporaries. I hope the readers of the East Anglia in Business magazine, will also use this article to recruit for their own businesses.
Senior Under Officer Phoebe Russell
Senior Under Officer Phoebe Russell
or the uninitiated, OTCs have been in existence since the Second Boer War, after the 1908 Lord Haldane Reforms. One of the key areas of the reforms was to improve the supply of Officers to the Army in wartime. OTCs now span 180 universities and Higher Education establishments in the UK, supplying about 40% of regular commissions and 65% of reserve commissions. My Unit’s recruiting area is Cambridgeshire and Norfolk with the majority of my cadets coming from Cambridge University and the University of East Anglia. I am charged with trying to get as many high calibre young men and women into Sandhurst; for the 80% though, that don’t seek to become either regular or reserve officers, it is equally important that I prepare them for the rigours of life in business or industry. If they have enjoyed and benefitted from their OTC experience, we hope they can become champions of the Army in society. Mental and physical resilience, communication and planning skills and building/leading teams are
Being an Officer Cadet has provided me with extracurricular enjoyment and opportunities – a taste of military life, sporting endeavours and new friendships, whilst at university. However, it is the long-term benefits to reap following graduation that have proven invaluable, specifically relating to job applications and career prospects. I would account my success in achieving numerous job offers following multiple interviews and assessment days, to being an active member of the UOTC. In these scenarios, I have been able to effortlessly discuss a multitude of interesting experiences, where I have developed and proven my skillset. I have been able to think quickly and focus under pressure during rigorous assessment day tasks. This is due to being regularly exposed to and challenged by physically and mentally demanding undertakings in the OTC. Employers were particularly impressed with my organisation skills and capacity to efficiently prioritise my workload, skills demonstrated alongside teamwork and leadership, often in challenging and unique circumstances; including a recent defence engagement exercise to Jordan. Character-defining experiences such as these have been immense in my personal development. I have become a well-rounded personality, able to effectively communicate and work within diverse teams.
TRA I N I N G A N D E D U CAT ION
C ambr id ge Universi t y O f f icers ’ Training Cor ps (C U O TC)
Officer Cadet Charlotte Lee (Photo OCdt mercer (L) and OCdt Lee (R) )
For the committed individual, the OTC offers an incomparable training environment. One that is conducive to success, with countless opportunities to learn, develop and mature. I am confident that my enhanced skillset will assist me immeasurably in the future, as I work through my career.
Officer Cadet Charlotte Lee OTC has been instrumental in nurturing my leadership skills, and given me many different opportunities to push myself outside of my comfort zone. I have completed presenting and command tasks, and had experiences to challenge myself that were helpful in securing an internship with the Bank of England over the summer. During the selection process I was faced with different scenarios where I applied a lot of skills I have learnt from OTC. Being able to take a moment, assess the situations, and bring a group together to achieve the task at hand, were all things I developed with the OTC. During the individual interviews, I used OTC scenarios to evidence my skills which I believe helped me to stand out. I have thoroughly enjoyed my time with OTC so far and I know it has provided me with a set of skills I can use in my life after university. It has pushed me past academics to learn more about myself; how I deal with pressure, the characteristics I possess as a leader, and how to motivate myself and others when things get tough. I believe OTC has helped me build my resilience by doing things I wouldn’t have had the opportunity to do just with university alone. I have also made
Officer Cadets on Exercise
some really strong friendships I hope to keep for many years to come.
Officer Cadet Ismay Keane I joined the OTC in my second year of university because I wanted to diversify my CV and challenge myself whilst studying. The OTC proved to be the perfect way to do that as well as to gain new skills whilst developing those I already had. The OTC has taught me most importantly to work in high pressure situations with a clear head and an analytical frame of mind. In addition, possibly most usefully for my future as a lawyer, I have also developed more strongly the ability to work with little sleep! I have been able to test significantly my leadership and teamwork skills at the OTC and the staff have been sure to give leadership opportunities to cadets. Where I have not been a leader I have instead been working within a team. The OTC is all about team effort and the creation of not only strong and efficient groups of people on exercise, but also friends external to the action. As a result I have both been challenged to work well with other people and have gained friendships for life! I believe the OTC has stood me in very good stead for job applications and has hugely diversified my CV, which was specifically mentioned in a successful vacation scheme interview I had! I will always be glad I joined because I feel that my university experience was greatly enriched by the OTC and I’m sure that both my professional and personal life after my graduation will also be enriched.
ALASTAIR FIELD MBE Commanding Officer, Lieutenant Colonel
TO DAY â€™S MAN AG ER L e adi ng W i t h H u mo ur
TO DAY ’S MA N AGER L e ading W i t h Humo ur
IMPROVING YOUR LEADERSHIP THROUGH HUMOUR Today, interpersonal skills are critical to our personal and professional success. In the workplace, we are increasingly encouraged to improve our capacity to handle relationships judiciously and empathetically.
rganisational humour can create positive energy within a company and help improve leadership skills, but used inappropriately it can destroy a manager’s credibility and offend people. Dr Vanessa Marcié is CEO & founder of Leading With Humour, an innovative international change management consultancy that aims to improve people’s performance, workplace culture, relationships and communication through enhanced understanding and use of humour.
In this article, Marcié, who is an Executive MBA graduate of Cambridge Judge Business School, shares her thoughts about how people can effectively use humour in the workplace: “Although humour is an underrated and underutilised asset, it can have a tremendous impact in transforming organisational culture and how employees can work better together. I want it to be seen as a critical component of leadership.
Both male and female leaders would benefit from understanding the type of humour that works best for them, and, more important, how to use humour strategically to their advantage.
She is co-author, along with Sucheta Nadkarni, Director of the Wo+Men’s Leadership Centre at Cambridge Judge Business School, of research about the impact of humour as a powerful leadership tool. This research demonstrates the positive consequences of using humour in the way leaders communicate, lead teams, and deliver highperformance results.
A hundred senior executives were interviewed for our study, from industries as diverse as finance, healthcare and technology. One key finding highlights differences in the use and receipt of humour based on gender: while male and female leaders agree that humour has a beneficial effect on their leadership, women often hold back using humour even when it may be effective. This represents a significant lost opportunity in gender equality in the workplace, as humour
TO DAY ’S MAN AG ER L e adi ng W i t h H u mo ur
could be a critical strategy for female leaders to enhance their performance and thrive in a masculine world. We tend to think our sense of humour is innate, that we are born with it not. I believe everybody has a sense of humour but, as with our leadership skills, some people are more equipped than others. However, it doesn’t mean we can’t improve our ability to use humour nor that we can’t learn to use it purposefully to achieve a specific outcome. Both male and female leaders would benefit from understanding the type of humour that works best for them, and, more important, how to use humour strategically to their advantage.
How? First people need to understand four different types of humour: Self-defeating: Putting yourself down in an aggressive or ‘poor me’ fashion. Aggressive: Put-downs or insults targeted toward individuals. Self-enhancing: Making yourself the target in a good-natured way.
VANESSA MARCIÉ leadingwithhumour.com Connect with Vanessa Marcié on Twitter (@Vmarcie) or Linkedin & Instagram
Affiliative: Telling jokes about things that everyone might find funny. People can adapt these types of humour according to the status of the audience – whether someone is addressing their superior, subordinate or peer; the gender of the listener or listeners; and whether the situation is formal or informal. If used correctly, humour can generate benefits in the following areas: group cohesion; improved communication; stress reduction; creativity; positive change in company culture; power; and reduction of social distance.
In an organisation, humour can also be applied by leaders in various situations and across many departments: International: In a business context, one can often be confronted with the challenges of an international audience and multiculturality. It is crucial to keep in mind that your sense of humour might not translate very well, and what makes people laugh in the UK might be offending or misunderstood in other countries. The ideal would be to learn about local customs before trying your best joke, or alternatively use a type of humour consisting of anecdotes about general topics that easily span geography and culture. In a crisis situation: We can’t laugh about everything with everyone. In the context of a severe crisis, using humour could demonstrate insensitivity that would only worsen the
situation. However, responding to a rumour with humour could illustrate a sense of control and creativity. In change management: Humour has the power to overcome resistance to change and promote a positive outlook. Knowing how to use humour in times of stress and change demonstrates an absolute mastery of the situation that inspires confidence. Human resources: Knowing the type of humour of a candidate can help refine recruitment and form better-meshed teams. By allowing the use of humour within teams or within a company, the CEO and other managers can participate in the transformation of a company’s DNA. Sales: Humour helps break the ice and build deeper, more positive and longer-lasting relationships with prospective customers. Laughing helps anchor a positive emotion that can make a huge difference in negotiations. Marketing: Depending on the industry, thinking outside the box and having fun with your marketing can contribute to creating a brand the public will remember positively and whose message will be more easily retained.
Five keys to unleashing leadership effectiveness: Know your audience: understanding your audience allow you to better tailor your sense of humour and avoid well-intentioned jokes that turn into humour disasters. Be mindful of laughing at others: humour should be kind and intelligent to bring people together and create positive energy. Laugh at yourself: As a leader, it is essential to not take yourself too seriously, as humour helps subordinates know that you’re a real person and realise your flaws. Appear in control: When under pressure, humour is the first thing that can disappear. So if you can still use it while under pressure, it conveys the message that you are in command of the situation. Be ready: If you have a ready comeback in your pocket, it’s an excellent way to point out something inappropriate. I believe that each laugh of each person triggers a positive ripple effect on the world and the capacity to transform organisations, people and relationships. So dare to be funny, but use humour with kindness and in mindfulness.”
TO DAY ’S MA N AGER L e ading W i t h Humo ur
I believe that each laugh of each person triggers a positive ripple effect on the world and the capacity to transform organisations, people and relationships.
VANESSA MARCIÉ CEO & FOUNDER OF LEADING WITH HUMOUR
HE ALT H AN D W ELL B EIN G G ip pi ng Occ u pat ion al He a l th Ltd
HEALTH & WELLBEING IN THE WORKPLACE Having work that is fulfilling and meaningful is known to have a positive impact on our health and wellbeing.
he role employers can play in influencing their employee’s health and wellbeing can’t be underestimated, employers have a duty of care to ensure their employee’s health, both physical and mental, is not negatively impacted by the work they do.
The financial impact of poor health and wellbeing at work is significant, according to the Centre of Mental Health in 2017/18 the cost to the UK economy of poor mental health was £35 billion, this equates to approximately £1,300 per employee. The HSE reports that 1.4 million
HE A LTH A N D WE L L BEING G ip ping Occ u pat ion al He al t h L td
workers were suffering from work-related ill health (new or long-standing) in 2017/18. Whether you employ 10 people or 1,000 people there will be a cost to your business if you ignore the health and wellbeing of your employee’s. Those costs are likely to include increased sickness absence, loss in performance and productivity, higher staff turnover, the associated costs of recruitment and the loss of talent from a business. A strategy that is integral to your business is key, one which recognises and understands both the physical and mental health risks and issues that employee’s may face. This is where an Occupational Health service can be of great value, by helping to identify those health risks and issues, advising and guiding the business in implementing a programme that will minimise risks and contribute positively in building and maintaining a healthy workforce. It can be useful to prioritise what your business needs and wants from a workplace health and wellbeing perspective, this may include reducing sickness absence levels and associated costs. You may have noticed that there are more people struggling with mental health issues but you are unsure how to support this. A good starting
point is to improve awareness around a particular health topic, such as mental health, beginning with Managers and Supervisors who often are the best people who will know their staff and notice changes that could be associated with a mental health issue. Following on from raising awareness more and more businesses are recognising the benefit of having people trained as Mental Health First Aiders, who learn how to approach, respond, assess, and give support to someone who may be struggling with their mental health. Mental Health First Aiders can also play a key part in raising awareness of mental health within your workplace, helping to break down stigma’s that are often associated with mental health and can be a barrier for someone who may want and need help but feels unable to ask for help. The overall benefits of managing and improving workplace health and wellbeing will also include better staff engagement and retention by contributing to your corporate reputation, with more people looking beyond their salary and job role when it comes to determining whether you are a good employer. Whatever you do, it can start small and should always evolve just as your business evolves and grows.
MARK BRAITHWAITE Managing Director Gipping Occupational Health Ltd www.gipping.co.uk
Building effective partnerships for healthy working lives
occupational health and wellbeing
Based in East Anglia, Gipping OH is a provider of high quality occupational health and wellbeing services to a wide range of sectors. Assisting businesses in the effective management of workplace health matters with a responsive and flexible approach to meet business needs and putting customer service at the heart of everything.
OUR RANGE OF SERVICES INCLUDE New employee health screening Health questionnaires Health surveillance Hearing tests Lung function tests Safety critical assessments
Management referrals, advice & guidance on health matters affecting attendance & performance OH needs analysis OH mobile unit
Drug & alcohol testing Face fit testing Occupational vaccinations Health & wellbeing promotion EAPs
Physiotherapy Talking Therapies Training, including: Mental Health First Aid Mental Health Awareness at Work Manual Handling First Aid
Contact Gipping OH to discuss your Occupational Health requirements by: calling 01449 766913, emailing firstname.lastname@example.org, visiting www.gipping.co.uk 57
E ll i s ons S ol ic i tors
EMPLOYMENT LAW REFORM - WHAT TO EXPECT IN 2019 AND BEYOND In July 2017, an independent review of modern working practices, “Good Work: The Taylor Review of Modern Working Practices”, was submitted to the UK Government. This paid particular attention to agency, casual and zero-hours workers.
n response to this, the Government published its ‘Good Work Plan’ in December 2018, promising to introduce a number of legislative changes that strengthened the rights of workers currently in insecure forms of “employment”.
The Good Work Plan sets out: The Government’s vision for the future of the UK labour market. How the Government will implement the recommendations that have arisen from The Taylor Review of Modern Working Practices. A key part of the Plan is the introduction of the right to request a more stable contract, which will be available to all workers who have accrued 26 weeks of continuous service. These workers will be able to submit a request for a more fixed working pattern, including a guaranteed number of hours each week or to regularly work on specific days e.g. Monday-Friday. We do not yet
know when this will be implemented neither do we have many specific details, however we know that it is likely to work in a similar way to the current right to request flexible working. This means employers will need to consider any written request and confirm to workers whether or not this is acceptable, with reasons, within a threemonth timeline. Another key proposal contained in the Plan is that employers will need to provide all workers with a written statement of terms, and from day one. Currently this obligation only exists in relation to employees, not workers, and only then, within two months of starting employment. This grace period is being removed by the government in an attempt to increase transparency around terms of employment, and there will also be stricter guidelines around the information to be contained within these statements. Regulations have been published to bring these changes into effect on 6 April 2020.
E l l is ons S olic i tors
Other key proposals under the Plan are: Abolishing the Swedish Derogation, which gives employers the ability to pay agency workers less than their own workers in certain circumstances. Regulations have been published and are due to come into force on 6th April 2020. Banning deductions from staff tips. Lowering the thresholds for requesting information and consultation arrangements from 10% to 2% of employees, subject to the existing minimum of 15 employees. Regulations have been made which will implement this change from 6th April 2020. Refining the employment status tests; to include developing an online status tool. The government has not said how it intends to provide this clarity. Increasing the maximum penalty for an employer’s “aggravated” breach of employment law from £5,000 to £20,000 for any breaches occurring on or after 6th April 2019.
Other potential developments to look out for Furthermore, the Working Time Regulations 1998 will be amended to allow a more balanced approach for zero-hours staff whose weekly working hours can differ significantly, and this will also come into force on 6th April 2020. The amendment will extend the reference period for determining an average week’s pay, to 52 weeks (currently 12), in the hope that holiday pay will become a more accurate reflection of an individual’s true working pattern and average earnings. Parental bereavement leave and pay is also likely to be subject to change. Under new Regulations, employed parents will have a statutory right to two weeks’ leave if they suffer the tragedy of losing a child under the age of 18, or suffer a stillbirth after 24 weeks of pregnancy. They will also be able to claim statutory parental bereavement pay, if they meet the relevant eligibility criteria (similar to the eligibility criteria for statutory paternity pay). Leave will be available to be taken as a single block, or as two separate weeks. Employed parents will have a period of 56 weeks in which to use their entitlement. It is expected that these new rights will come into force in April 2020. The Good Work Plan has also confirmed that rules will change concerning continuity of employment. Casual employees can find it difficult to accrue certain employment rights, e.g. protection from unfair dismissal, because a gap of one week can break the necessary continuity of employment. The Government is proposing that this rule will change by extending the gap in between periods of employment with the same employer to 4 weeks, before a break in continuous employment occurs, giving casual workers greater opportunity to build up service-related rights. We do not yet know when this change will come into effect.
The Supreme Court judgment in R (on the application of Unison) v Lord Chancellor which declared the Employment Tribunal fee regime unlawful, left open the possibility of a new fee scheme which would need to strike a balance between increasing Tribunal funding and safeguarding access to and the delivery of, justice. The Ministry of Justice has since indicated that plans for a new fee regime for the Employment Tribunals is in development. We do not yet know when the new regime may be introduced. Another area under scrutiny and where reform is likely, concerns protection for women and new parents when it comes to redundancy dismissals. Currently if a woman is on maternity leave and is selected for redundancy, she must be given priority over other potentially redundant employees, when the employer offers suitable alternative employment. The government has consulted with a view to extending this right for a period of 6 months beyond a woman’s return from maternity leave. It is also considering extending the right to those women who have told their employer that they are pregnant, but have not yet started any maternity leave, as well as to parents who are on adoption leave, shared parental leave and other longer periods of parental leave.
JULIAN OUTEN Partner and Head of Employment, Ellisons Solicitors. Julian has over 20 years of experience of HR and Employment Law, advising on the full range of contentious and non-contentious matters and helping Employers to navigate the ever-changing employment law landscape. Julian.Outen@ellisonssolicitors.com www.ellisonssolicitors.com
2020 is really not far away now, and employers should use this time to keep an eye on these developments to ensure they are in a position to comply with these new requirements as and when they come into being. The Ellisons Solicitors Employment Team can keep you abreast of these changes as they become available, and we can also help to ensure that your business is able to meet its new obligations.
F IN AN C E
L ove we l l B l a ke
FI N ANCE
L ove we ll B l a ke
HOLDING ONTO KEY TALENT IS CRUCIAL TO ANY BUSINESS’S SUCCESS In today’s knowledge economy, the contribution which key members of staff can make to the success of your business is greater than ever.
ith this in mind, a question which is particularly relevant to fast-growing businesses is this: how do you hold onto your winning team? Perhaps you are building your business and seeing it start to gain traction in the marketplace, and you are confident that you have a hit on your hands. The one thing which might dent that great feeling of imminent success is if your winning team decide to walk away. Or perhaps you are at the stage where you are seeking investment to take your business to the next stage. Whatever kind of backers you are courting – traditional banks through to crowdfunders – they will all want to know that the star performers who have got your company to where it is now are going to stick around. They may well make it a condition of their investment that you demonstrate what you have done to tie them into the business. There are few entrepreneurs who haven’t given this issue some serious thought. And in the new, non-hierarchical business world, company owners are much more switched on to thinking about
share options at a far earlier stage of the business’s development. But structuring this in the right way is key, both in effectively retaining that key talent, but also ensuring it’s done in a financially and taxefficient way.
There’s a scheme for that Fortunately, there is a very neat solution which is increasingly popular amongst growing businesses: the Enterprise Management Initiative Scheme (EMI). An EMI share option is an agreement between a ‘key employee’ and the company which lets them buy an agreed number of shares, at an agreed price. There has been widespread adoption of EMIs in the tech sector, where a Silicon Valley-style performance culture and ethos is more prevalent. But actually the scheme is suitable for most developing businesses which are dependent on key personnel for driving forward growth. They are particularly relevant where there is a separation between the business’s owners and the person or people who are actually undertaking the important activity. The beauty of the EMI scheme
F IN AN C E
L ove we l l B l a ke
is that you can identify individuals within a group, rather than making it universally available across the whole company. There is a cultural element here: it’s about accepting that those whose knowledge or skills are crucial to the business should be able to share in the company’s success. This is particularly relevant when that person is someone who has only been in the organisation for a short period of time (a recent graduate, for example), and who therefore wouldn’t traditionally expect to be a shareholder straight away. There is a new generation of workers who know they have these key skills, and who will be attracted to employers who can demonstrate that they are prepared to reward them with a stake in the business. It also sends out a great message to investors – it’s a statement of intent about your company’s ambitions. Many will want to be reassured that you are taking steps to attract and retain the talent which will bring them a sound return on their investment, and having an EMI in place signals that a business is serious about tying in a winning team.
MARY SCHOFIELD Partner, Lovewell Blake email@example.com www.lovewell-blake.co.uk
Advantages – and things to think about
However, setting up an EMI scheme is not without up-front cost for the business, at a time when it might be looking to allocate all of its spare resources into driving growth. Nor is it a magic bullet: staff can and do still leave, tempted in many cases by more generous packages from other companies. Getting the structure right is also important – for example building in a shareholder agreement to ensure that if the employee does leave after exercising their option, the company has the right to buy them back before they are sold to a third party.
Many will want to be reassured that you are taking steps to attract and retain the talent which will bring them a sound return on their investment, and having an EMI in place signals that a business is serious about tying in a winning team.
Aside from the obvious advantages of having a system in place which will attract and retain key talent as well as reassuring investors, there are significant tax advantages for both employers and employees in adopting the EMI scheme.
One key benefit is that the scheme qualifies for Entrepreneurs Relief, which means that capital gains tax is payable at the reduced rate of 10 per cent where certain conditions are met. Perhaps more importantly, given that many beneficiaries of the EMI scheme will be at an early stage in their career, if structured correctly no tax is payable at the point the option is exercised. Therefore an EMI scheme can have significant advantages over an unapproved share scheme. So not only does the employee pay significantly less tax, but there is no tax liability until they cash in their shares, encouraging them to hold onto their investment for longer (i.e. they won’t have to sell some or all of their shares immediately to pay a tax bill at the point of exercising the option).
For the employer, granting options in this way is more attractive than simply giving shares as an immediate incentive, both because those options can be dependent on growth targets or other KPIs being met, and also to avoid complications if the individual does leave the company in the meantime.
But there is little doubt that demonstrating a commitment to key people in this way minimises that risk, even if you can never remove it altogether. Doing so does require a certain degree of egalitarianism on the part of the business owner, and a genuine belief in the individuals they are incentivising.
It’s not just about the money One final thing to think about is that the individual’s priority might not only be financially based. This is increasingly common amongst millennials, who value other factors such as worklife balance, opportunities for flexible working, flatter structures and employers with a strong CSR commitment. Putting a share option scheme in place is not enough on its own; it must be accompanied by a genuinely inclusive culture. There are cynics who say that loyalty – whether from employer to employee or vice-versa – is a thing of the past in business. That’s not actually the case. But as has always been the case, loyalty has to be earnt, and there is no better way to generate that sense of loyalty than creating a real feeling of ownership, in every sense of the word.
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MEMBERS VOLUNTARY LIQUIDATION One of the services we provide to our clients is a Members Voluntary Liquidation (MVL).
his is a corporate procedure used to close a company when it is solvent (i.e. it can pay all of its debts). The procedure allows a tax efficient way to withdraw funds from a company, instead of salary or dividends. The process is fully approved by HMRC. An MVL is often used when a company is no longer required – this could be due to a retirement or business sale, or when the company no longer has a purpose, such as a fixed term contract having ended. Clients may consider an MVL following a discussion with their accountant or financial adviser about their options, however it must be a licensed insolvency practitioner who formally liquidates the company. Clients using an MVL will often claim “Entrepreneurs Relief”, which allows shareholders to pay an effective tax rate of just 10% on the funds due to them. This is a much lower tax rate than withdrawing the funds as salary or a dividend,
although there is a limit that each shareholder can claim during their lifetime of £10 million. The MVL process usually starts with a discussion with one of our licensed insolvency practitioners, to assess whether the company can pay off all of its liabilities. The directors are required to swear or affirm a statement containing the company’s balance sheet. Following this, the company will hold meetings of the directors and shareholders and the directors will sign the necessary paperwork. We liaise with the company’s accountant to ensure all HMRC returns are filed and paid, and that all other liabilities are paid before distributing the remaining funds to shareholders, which can be a fast process, with funds usually paid out within 24 hours of the liquidation commencing.
LEADING UK leading.uk.com 0800 246 1845
We pride ourselves on providing an outstanding service every time, so if you are considering closing your company using an MVL, contact us on 0845 246 1845.
AGR I C ULT UR E NFU
Harvest at Park Farm, Thorney (Photo: Ieuan Williams)
AG RI C U LT URE NFU
A THRIVING FUTURE FOR THE FENS The Fens is a unique landscape that also punches well above its weight when it comes to producing food.
AGR I C ULT UR E NFU
Harvesting potatoes in the Fens (Photo: Tim Scrivener)
lthough it covers less than 4% of England’s farmland, the Fens produces more than 7% of England’s total agricultural production, worth a staggering £1.23 billion. Alongside food and horticultural production, farmers in the Fens also play a vital role in managing, protecting and enhancing its unique and fragile environment. A recent biodiversity audit identified more than 13,000 different species, including 1,932 priority species. So the Fens is a food and farming success story but, as a new NFU report identifies, it also has several challenges to overcome to ensure it can continue to deliver for food and the environment. Much of its highly-productive and prized soil is below sea level and therefore at risk from coastal and fluvial flooding, with climate change increasing that threat. Growers of crops including potatoes, vegetables, flowers and fruit must continue to access water to sustain an irrigated crops sector worth £750 million per year. However, they are now entering a second consecutive year of agricultural drought that is increasing the pressure on water availability. And the use of peatland for improved pasture, arable land and horticultural production has led to losses of this valuable peat resource, from an area that forms the largest contiguous section of lowland peat in the UK. The NFU report - ‘Delivering for Britain: Food and Farming in the Fens’- addresses these issues and makes strong calls for action to ensure the Fens is
protected for the future. It was launched at a high profile event on a farm near Peterborough in May, hosted by prominent Fenland farmer Michael Sly. Among the 100 attendees were national and local decision-makers from Defra and the Environment Agency, local politicians and representatives from groups including the Association of Drainage Authorities, Natural England and the RSPB. NFU Vice President Stuart Roberts, who officially launched the document, said he hoped it would become ‘the bible’ when it came to developing policy that affects food and farming businesses within the Fens. Mr Roberts said: “This document is hugely important. It highlights how the Fens delivers for Britain, both for food and the environment. It will also act as a one-stop shop for key decision makers to inform policy in the years ahead and secure a successful and sustainable future for this unique landscape.” Statistics in the report include: £3.1 billion – the value of the Fens’ food chain 500,000 people live in the Fens 80,000 workers are employed from farm to fork in the Fens More than a fifth of all UK flowers and bulbs – and a third of our fresh veg - are grown in the Fens 428,000 homes can be powered by Fensgenerated renewable energy.
AG RI C U LT URE NFU
The report points out that well-maintained flood defences are essential to protect the people, businesses and the 1,500 square miles of the Fens. Internal Drainage Boards maintain 3,800 miles of watercourses and 286 pumping stations, with a combined capacity to pump the equivalent of 16,700 Olympic-sized swimming pools in 24 hours. Stafford Proctor is one of the farmers featured as a case study within the report. His family has been farming in Long Sutton, Sutton Bridge and Wisbech since the 1840s and Mr Proctor is involved in the Wash Frontages Group, which promotes and encourages improvements to coastal and river flood defences around the Wash. Speaking at the launch, he outlined how the group had been involved in a major project to raise the sea banks at Wrangle, the first major improvement to sea defences in more than 30 years. After the defences were damaged and breached in the storm surge of December 2013, four miles of sea banks were strengthened and raised to a height of seven metres. Mr Proctor said: “The amount of people and infrastructure we are protecting in the Fens is considerable. There are 500,000 people, their homes, rural communities, villages and towns, businesses and road and rail infrastructure. “There’s considerable renewable energy generation that is within the Internal Drainage Board district, too.”
Farmer Stafford Proctor (Photo: NFU)
Mr Shropshire said: “Our primary job is to produce crops and progressive farm management will be at the forefront of what we do. Our main aim is to become less dependent on agrochemicals and fertiliser.”
Our primary job is to produce crops and progressive farm management will be at the forefront of what we do. Our main aim is to become less dependent on agrochemicals and fertiliser.
Third-generation farmer Charles Shropshire, from Farmer Charles Shropshire Cambridgeshire-based G’s, highlighted how the business was taking a whole-farm approach, looking at how to farm more productively while also managing soils and the environment.
The business employs a full-time sustainability manager and works closely with conservation groups such as the RSPB and research organisations including NIAB. It is using drones and other new technology to help it understand the varying soil structures around the Fens, which can include peat, silt, sand and clay. Soil tests for macro and micro nutrients are undertaken and an in-depth soil management plan is being produced for each field. Trickle irrigation has been introduced for celery, potatoes and lettuce production and this has produced up to 50% savings in water usage.
Alongside this excellent work already under way on farms, research centres based in the Fens are leading the way by delving into new resilient crop varieties and techniques that will produce more food, with fewer resources, in the face of extreme weather.
They include NIAB at Cambridge, which provides world class research, information and advice to support the sustainable intensification of crop production. Part of its research is focussed on improving the genetic diversity of modern wheat to ultimately increase yields.
BRIAN FINNERTY NFU East Anglia Adviser
Technical director Bill Clark said: “There have been drastic improvements and breakthroughs in yields in the past but we are ready for the next step change. Some of the highest yielding wheat in the world can be found in the Fens. The land has enormous potential.” The full report is available at http://bit.ly/fensreport or you can request a copy by emailing email@example.com
DI GI TAL AN D I N N OVAT IO N Tra ns for m i ng L e gac y O r gani z at ions
HOW YOU ACCELERATE INNOVATION IN YOUR ESTABLISHED BUSINESS We live in the age of the entrepreneurs. New startups seem to appear out of nowhere and challenge not only established companies, but entire industries. news is that innovation is much more difficult in established organizations than it is in startups because they have much more complex systems. But the good news is that nobody is more likely to succeed in their innovation efforts than established organizations. Because, unlike startups, established organizations have all the resources. They have money, customers, data, suppliers, partners, and infrastructure, which put them in a far better position to transform new ideas into concrete value-creating, successful offerings than startups. Becoming an innovation champion in these times of exponential change, however, begs new rules of engagement. Many organizations commit the mistake of engaging in innovation as if it were a homogeneous thing that should be approached in the same way every time, regardless of its purpose. But innovation in established organizations must actually be divided into three different tracks: optimizing, augmenting, and mutating innovation. All three are important. And to complicate matters further, organizations must execute all three types of innovation at the same time.
here unicorns were once mythical creatures, they now seem abundant and not only increase in numbers but also in the speed of which they can gain their minimum one billion dollar valuations to achieve this status. But no matter how well things go for the innovative startups, how many new success stories we hear, and how much space they take up in the media, there’s both bad and good news for the large, established organizations, those that we often call legacy organizations. The bad
The first track is optimizing innovation. This type of innovation is the majority of what legacy organizations already do today. It is, metaphorically speaking, the extra blade on the razor. When razor manufacturers launch a new razor that has not just three, but four blades, thus ensuring an even better, closer, and more comfortable shave, only to announce one or two years later that they are now launching a razor that has not only four, but five blades – so you get an even better, closer, and more comfortable shave – that is optimizing innovation. This is where the established player reigns. No startup with so much as a modicum of sense would even try to beat the established company in that type of innovation. Continuous optimization, both on the operational and customer facing sides, is important. In the short term. It pays the rent. But it’s far from being enough, because there are limits to how many blades a razor needs, and ultimately optimizing innovation only improves upon the past. Therefore, the established players must also prepare for the future through augmenting innovation. If you look at the digital transformation projects that more and more organizations are
D I G I TA L A N D I N N OVAT ION Trans for ming L e gac y O r ganiz at ion s
initiating, they can typically be characterized as augmenting innovation. In the first instance, it is about upgrading core offerings and processes from analogue to digital. Or, if you’re born digital, you’ve probably had to augment the core to become ‘mobile first’. Perhaps you have even entered the next augmentation phase, which involves implementing artificial intelligence. To become ‘AI first’ like we see the Amazons, Microsofts, Baidus and Googles of the world are currently doing. This requires great technological advancements. And it’s difficult. But technology may, in fact, be the minor part of the task. When it comes to augmenting innovation, the biggest challenge is probably culture. Because it is only if legacy organizations manage to transform their cultures from status quo cultures, i.e. cultures with a preference for things to maintain as they are, into cultures full of incremental innovators who thrive in constant change, within certain limit, that they can succeed. To create a strong innovation culture, an organization needs to thoroughly understand its immune systems. The immune systems are the mechanisms, that protect the organization and which operate around the clock to keep it healthy and stable, just as the body’s immune system operates to keep the body healthy and stable. But in a rapidly changing world, many of these defense mechanisms are no longer appropriate and therefore risk weakening organizations’ innovation power. When talking about organizations’ immune systems, there is a clear tendency to simply point to the individual immune system, people’s unwillingness to change. But this answer is too simplistic and sloppy. Of course, there is human resistance to change, but the organizational immune system, consisting of a company’s KPIs, rewards systems, legacy IT and processes as well as investor and shareholder demands, is far more important. So is the organization’s societal immune system, i.e. the legislative barriers, legacy customers and providers and economic climate. Luckily, there are many culture hacks that organizations can apply to strengthen their innovation cultures by upgrading their physical and digital workspaces, transforming their top-down
work processes into decentralized, agile ones and empowering their employees. Augmenting innovation is crucial if you want success in the medium term by upgrading your core and prepare for the future. But to win in the long run and become as or more successful 20-30 years from now, you need to invent the future, and challenge your core, through mutating innovation. This requires involving radical innovators who have a bold focus on experimenting with that which is not currently understood and for which there cannot be prepared a business case. Here you must also physically move away from the core organization when you initiate and run such initiatives. This is sometimes called ‘innovation on the edges’. Because the initiatives will not have a chance at succeeding within the core. It will be too noisy, as they challenge what currently exists, i.e. precisely what the majority of the organization’s employees are working to optimize or augment.
KRIS ØSTERGAARD Author Transforming Legacy Organizations: Turn Your Established Business into an Innovation Champion to Win the Future
Forward-looking organizations experiment to mutate their core through X divisions, sometimes called skunk works or innovation labs, like Lowe’s Innovation Labs that built instore robot assistants and zero gravity 3D printers to explore the future; partnerships across all imaginable domains; establishment of brand new companies, rather than traditional business units, as we see automakers such as Toyota now do to build software for autonomous vehicles; and radical open innovation such as the ANA Avatar XPRIZE competition, where Japan’s number one airline experiments with creating the future of travel that does not involve flying people from A to B. The increasing technological opportunities challenge the core of any organization but also create unprecedented potential. No matter what product, service, or experience you create, you can’t rest on your laurels. You have to bring yourself to a position where you have a clear strategy for both optimizing, augmenting, and mutating your core and thus transform your legacy organization. It’s not an easy job. But, hey, if it were easy, everyone would be doing it. Those who make it, on the other hand, will be the innovation champions of the future.
There are many culture hacks that organizations can apply to strengthen their innovation cultures by upgrading their physical and digital workspaces, transforming their top-down work processes into decentralized, agile ones and empowering their employees.
DI GI TAL AN D I N N OVAT IO N O p p or t u ni t y Pe te r b oro u g h
Unlocking the full potential of manufacturing’s digital revolution
utonomous robots, internet of things (IoT), augmented reality, additive manufacturing and big data are just some of the Industry 4.0 technologies that are transforming manufacturing around the world.
The project is centred around change management toolkits developed by Anglia Ruskin University and TWI in collaboration with international partners that encompass awareness and readiness, benefits identification, ROI analysis and ROSF Assessments.
The integration of digital and physical systems that began with computers and basic automation is evolving into responsive and intelligent machine learning. With minimal human intervention, processes on the factory floor can be streamlined and activities through entire supply chains adjusted in real time to cope with any disruption.
“While the toolkits and consultations can give manufacturers practical guides for adopting the technology, we want to use this revolution to address broader economic challenges around skills development and sustainability so we can really optimise growth across the manufacturing sector.”
Smart sensors in machinery can capture performance and send alerts when components need fixing. In logistics, there have already been successful roll-outs of products that can help reduce vehicular down-time, maximise capacity and potentially cut emissions by reducing unnecessary journeys.
Engagement through one to one consultations is supplemented with workshops featuring additional input from experts such as the Institute for Manufacturing, Innovate UK and Peterborough’s circular economy team to tackle broader obstacles for SMEs around cost effective solutions and sustainable growth.
The robots are coming A digitisation challenge With so much on offer it’s not just a case of prioritising, as Tom Hennessy, Chief Executive of Opportunity Peterborough, the economic development company owned by Peterborough City Council, explains, “Industry 4.0 technologies promise a lot - greater efficiency, higher-quality goods and reduced costs. For manufacturers in particular where so many processes can, and are being, automated, this is a huge catalyst for change and competition. “This is a whole new way of working that’s encouraging manufacturers to look at their entire operating systems. Some manufacturers have already made great headway but it’s still an emerging area. People are aware of the components that make up ‘Industry 4.0’, but we need to look at how all of these channels and systems can work together in the most effective way whilst causing minimal disruption to productivity as they’re rolled out.” To provide manufacturers with practical support to digitise, Opportunity Peterborough recently joined GrowIn 4.0, a European project (partly funded under the European Union Interreg North Sea Region Programme), that aims to help SME manufacturers across the East of England adopt these new technologies to their full potential.
The rise of robotics and automation has made manufacturing one of Peterborough’s, and the UK’s, most productive sectors. At the same time though, ONS data shows a decline in manufacturing jobs, but, as Tom explains, this isn’t the result of a sector wide jobs cull “It simply isn’t the case that once smart technology like autonomous robots come in that the human workforce is ejected - lower value work might be automated and digitised, but this frees up a business’ workforce to take on higher value tasks, often for higher pay. “There’s also been a shift in line with the broader economy around contract working. Within ONS data, agency staff are counted in the ‘business and administration’ sector, rather than under the sector of the business paying for their expertise and time. There’s been a lot of debate about the gig economy but for many people that work in areas like manufacturing, and even teaching, contract work can sometimes pay better, and offer a preferable working pattern to permanent employment with one company. “There’s a lot of nuance to this discussion, and it’s one we should certainly be having given the rapid changes across industry, and even society, as we become a much more digitally driven. While
D I G I TA L A N D I N N OVAT ION O p p or t uni t y Pe terb oro u g h
there is a need to tailor support for sector-specific challenges, we can’t always look at things in isolation - there needs to be an understanding of the economic context, how other industries are affected and what support we need to prioritise.” The shift towards Industry 4.0 has seen greater demand for interpersonal and analytical skills from employers. A recent study conducted by Education and Employers 1 has proven a link between higher levels of business engagement with careers activities in schools and improved GCSE results for students. “The jobs market has completely moved on from where it was 10 years ago. Businesses need to think long-term about talent attraction beyond sixthform. They can take time now to upskill their existing workforce, but if they want to develop their pipeline and get higher quality candidates through the door, they really need to engage with younger students. “It’s all about bridging the gap between business needs and student aspirations. If we want to see talent stay in the area then we need to inspire them with what will be available so they’re work ready, regardless of whether they’re taking on a vocational apprenticeship or pursuing a more traditional, academic path.”
“We’re extremely proud of what’s been achieved in Peterborough with our circular economy initiative and we want to share what we’ve learnt here with the surrounding areas and to learn from other businesses what they’ve found works practically” adds Tom. “Circular economy is a brilliant way to find collaborative opportunities across sectors, and evaluate processes so resource efficiency is maximised, waste is minimised and given new purpose, and whole life costs of products are driven down. This increases competitiveness, resilience, productivity, and profitability, as well as promoting sustainable growth and minimising the negative impacts of the economy on the environment.”
The jobs market has completely moved on from where it was 10 years ago. Businesses need to think long-term about talent attraction beyond sixth-form.
Growth at any cost? As manufacturers review their entire operations to adopt and evolve these technologies, there is a unique opportunity to build in sustainable practices that cut costs, make resources last longer, find new uses for waste, protects the environment and secures business longevity. The concept that’s helping businesses achieve all of these goals is “circular economy” which aims to move people away from a ‘take, make dispose’ model to a closed loop system with no waste, where resources are used to their full potential. It covers the entire business process and goes much further than recycling - this encompasses redesigning products so they can be taken apart for repair or remanufacturing more easily, down to whole new uses for waste streams, such as turning waste coffee grounds into bio-fuel. Even underutilised resources are taken into consideration, such as opening up empty meeting spaces for use by others, to diverting waste like unwanted office furniture from landfill by listing it on sharing platforms.
The GrowIn project will run until July 2020 across the Eastern region to give free support to SME manufacturers as they consider adoption of 4.0 technologies.
Ongoing engagement will consist of workshops organised by Opportunity Peterborough, the first four being held in July 2019 across the Greater Peterborough area, to discuss the challenges, opportunities and support available around Industry 4.0, with additional regions to follow at later dates. In-depth consultations will also be available with Anglia Ruskin University to optimise tech adoption through the toolkits. All participation is free of charge.
TOM HENNESSY Chief Executive, Opportunity Peterborough
To find out more about the GrowIn 4.0 project and the toolkits available, visit: aru.ac.uk/business-and-law/research/projects/ growin-4 For details of upcoming workshops please email: firstname.lastname@example.org 1. Motivated to Achieve: How Encounters with the World of Work can Change Attitudes and Improve Academic Achievement Education and Employers, June 2019. www.educationandemployers.org/research/ motivated-to-achieve/?utm_source=Taskforce+Research+Mail&utm_ campaign=f07577dcaf-EMAIL_CAMPAIGN_2019_03_11_10_21_ COPY_01&utm_medium=email&utm_term=0_2a7dc8d67df07577dcaf-169524613
DI GI TAL AN D I N N OVAT IO N JM S Gro u p L td
CAN TV MAKE YOUR BUSINESS A STAR? TV advertising was once the preserve of big brands and prime time viewing; the anticipation of the John Lewis Christmas ad or a Coca Cola commercial sandwiched between talent show hopefuls! But things have changed. For example, AdSmart from Sky, with whom we regularly partner, can serve different households differing commercials whilst they watch the same live TV. Put simply, the age of ‘Let’s advertise and see what happens!’ is thankfully long behind us. It is now daily practice for us at JMS Group to produce TV commercials targeted at a very specific demographic within a single region or even postcode. Advertisers need no longer accept that a proportion of their budget goes on reaching an inappropriate audience. Everything is targeted. As marketing experts are keen to highlight, consumers rarely differentiate between different forms of advertising and respond best to consistent and persistent messages. Piecemeal advertising campaigns are rarely as effective as a strong creative concept employed across media to reach the desired demographic at exactly the right moment.
s the internet and social media have expanded communication, so digital TV and on-demand viewing have broken down barriers and opened up TV advertising to the businesses of all sizes and not just larger brands. 35 years ago, when JMS launched, advertising was a much more limited palette of TV (on just two channels), local press, posters and radio. Even the most far-sighted marketing executives couldn’t have imagined today’s multiple touch-point, cross-platform, multi-media campaigns! The demographics of each form of advertising were largely predictable, so an advertiser simply worked out who might be watching, listening or reading, allocated their budget and waited. Things have developed immeasurably and with them the ability to be far more assured of a healthy return from well thought-out TV advertising. Today, broadcasters and advertisers have access to vast streams of data which help them make more informed decisions. The most recent development is Addressable Advertising where advertisers can target audiences down to a household level.
That’s why, as well as creating TV commercials, we frequently produce online videos, training materials, remarketing animations, print graphics and radio commercials, all ready to launch simultaneously. Of course, the power of a TV commercial is also dependent on its execution. At their best, ads can be some of the most inspiring examples of today’s visual arts. They have the power to make us laugh, cry (sometimes) and remember them for decades to come. Just like a feature film, drama or documentary, every commercial is the product of a creative and passionate team, like ours at JMS Group. Not every commercial on TV embodies the production values of a Hollywood movie, nor need it. Good or bad, each ad is subject to the same crucial challenge. It has just thirty seconds (ten seconds for sponsorship messages) to engage, inform and hopefully stimulate the viewer into considering buying something. Naturally, if it’s a holiday of a lifetime, stunning new kitchen or mouth-watering chocolate, the creative process can be a little bit easier. But what if it’s a funeral plan, worming pills or fishing tackle?
D I G I TA L A N D I N N OVAT ION JMS Gro u p L td
We produce over 200 TV commercials each year and around five-times as many radio adverts. Regardless of the inherent desirability of the product or service on offer, each must catch your attention, set a scene and convey a persuasive idea, in less time than it takes to open a can of baked beans. Within technical, budgetary and legal boundaries, it must appeal directly to its intended audience and make them crave the product.
creative people who fret, fuss and puzzle over an idea until it’s fully formed, however exciting or functional the product. It doesn’t stop there as the combined expertise of our camera team, sound producers, motion graphics designers, directors and performers must then bring it all to life.
I need only mention ‘Honda, the Power of Dreams’, ‘Should’ve Gone to Specsavers’ or ‘Compare the Meerkat’ and most people will instantly recall not just one ad but many.
And it’s here where creativity and ingenuity come to the fore. I need only mention ‘Honda, the Power of Dreams’, ‘Should’ve Gone to Specsavers’ or ‘Compare the Meerkat’ and most people will instantly recall not just one ad but many. Someone, somewhere, had to conceive and champion even those concepts just enough to ensure they got the opportunity to make memorable the advertiser’s message in just thirty seconds. When people ask me what I love most about my role, that’s it. It’s the magic of working with
Need a forest snow scene in mid-summer? The perfect roast potato for a mouthwatering close-up? Children playing enthusiastically with the latest and greatest toy? No problem. For some commercials we engage a celebrity or two, for others we write unique music.
No matter what the product, budget or timescale, there is always a way of creating a TV commercial which achieves the brief and delivers a return. With the opening up of TV and other media, anyone can find cost-effective exposure, to just the right audience, to propel their business towards its own level of stardom.
FRANCESCA DE LACEY Managing Director, JMS Group Ltd. JMS is a 35 year old full-service production company that creates over 1,000 radio commercials and 200 TV commercials and online videos every year for businesses throughout the UK and beyond, from their Studios just outside Norwich.
DI GI TAL AN D I N N OVAT IO N Ne w A ng l i a Grow t h Hub
NEW ONLINE PORTAL TO TAKE BUSINESSES TO THE NEXT LEVEL New Anglia Growth Hub has launched an online membership portal to help businesses scale up faster with specialist support.
his follows the start of the Scale Up New Anglia Programme by New Anglia Local Enterprise Partnership delivered through the Growth Hub in February this year. The programme will run over three years with a stated aim to help ‘Silver’ companies in the two counties - companies with a propensity to grow. They occupy a sweet spot between ‘Bronze’ (Start Ups) and ‘Gold’ (Scale Ups), defined as growing in terms of turnover or FTEs at 20% per annum or more, over a three-year period. The website has been launched to engage with and provide ongoing support to potential high growth businesses and to create a community of likeminded peers, and industry and topic experts.
Programme members will gain exclusive access to expert business analysis, a resource packed knowledge bank, information on special workshops and courses, as well as real world insights and knowledge through peer-to-peer learning. Dr Morgan Potter, High Growth Manager at New Anglia Growth Hub, said: “Our new members’ portal and website will provide a focus for scale up information. It will include videos and presentations, company success stories and useful interventions from key growth support organisations such as Invest East, Goldman Sachs, Innovate 2 Succeed and Tech Nation. Our support is fully funded and independent expert advisers are on hand to visit and guide you; all we ask is to register on the portal provided.
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“As part of the programme, we will provide training and focus groups, helping to create a community across both Norfolk and Suffolk, which will support all potential high growth companies and help them to achieve the next level in terms of performance. We can really help tip the scales for businesses to reach high growth.” Criteria to join: Operating for a minimum of three years 5-150 employees Turnover £250,000 or more in last financial year Primary owner/ primary decision-maker in the business.
Chris Pont, one of the founders and CEO of IJYI, said: “I’m excited at the prospect of being accepted onto these programmes as they have both shown massive benefits to their alumni’s organisations and has provided them with a greater level of rigour and understanding whilst scaling up.” Advocate for the Scale Up Programme, Justin Nevison-Grainger, Director at Conatus Financing Solutions Ltd, said: “It’s been a privilege to be a speaker and contributor at the superb Scale Up New Anglia High Growth programme events. The entrepreneurs involved are often the unsung heroes of business; the economies and employees of Suffolk, Norfolk and beyond. If I can help in some small way; all the better. Also, everyone involved picks up learning and inspiration and for that, I am grateful too.”
NEW ANGLIA GROWTH HUB To register for the Scale Up Programme, visit www.scaleupnewanglia.co.uk or for more information, please call the New Anglia Growth Hub on 0300 333 6536.
As part of the programme, we will provide training and focus groups, helping to create a community across both Norfolk and Suffolk, which will support all potential high growth companies and help them to achieve the next level in terms of performance.
Stop! Start grabbing your customers’ attention with effective marketing Find out how at fullmixmarketing.co.uk or call us on 01603 446227
Full Mix Marketing Strategy | Digital | Creative
DI GI TAL AN D I N N OVAT IO N C h a r te re d I ns t i t u te o f Ma rke t i ng
STAYING AHEAD AS AN SME Marketers in small and medium businesses are under daily pressure to keep pace with change and stay ahead of the competition.
trategy isn’t just for big businesses and the big corporate brands – it’s vital for SMEs too. And there’s plenty the big players can learn from their smaller counterparts. How do SME marketers in the East of England ensure their firms are resilient, and how does this inform their marketing priorities? Small businesses in the East of England face a major dilemma: because, chiefly, they need to build a recognisable brand and offer a consistent service for customers. This is essential if the organisation is to establish a market presence and differentiate
itself from competitors. But, alongside this need to build a settled brand identity, the quick-moving small business environment requires the brand to be responsive to risks and opportunities. However, building a brand is increasingly vital for small businesses, too; it can differentiate your products and services from competitors, and ensure your offer cuts through the noise in a busy marketplace. Of course, for many entrepreneurs, it’s tough to take a long-term view when working with limited resources. How can marketers in the East of
D I G I TA L A N D I N N OVAT ION C h ar tere d I nst i t ute o f Ma r ke t i n g
England gain a competitive advantage by building and leveraging a brand?
Create a strong brand Keeping the momentum going and keeping ahead of the game should be on every marketer’s minds, with personal and authentic branding at the forefront of your strategy. Building strong relationships is significant as people buy from people and not just brands. Having someone seen as an expert in their field of expertise will put you ahead of your competitors. Whichever direction SMEs plan to take, ensuring your voice is heard amongst the noise of Brexit is key to keeping front of mind to your customer base.
Make your brand stand out in a crowded market As well as keeping the business on-message, a brand helps consumers to understand what your company or product stands for. In today’s highly competitive SME environment, it’s crucial for businesses to articulate a point of differentiation to increase the chance of gaining a foothold – something that genuinely distinguishes the brand and its offering from others.
Pinpoint your brand qualities Working out the ‘what, how and why’ of your brand will help you work out some of these questions and establish your core offering: what you do or make; how you approach that; and your purpose in doing so. Try to avoid clichés – you should be imaginative but do be honest in establishing what your brand values are. And when determining these core values, be careful not to choose too many, as this can become unmanageable and easily forgettable. Your values should be practical and reflect what the organisation genuinely wants to achieve. It’s vital to be seen as authentic, honest and credible in order to engage today’s consumers.
Managing your costs on a smaller budget With a limited budget, smaller brands need to be smart in the way they engage with their customers. Unlike larger brands, you may not be able to be everywhere at once and talk with everyone in a predetermined way. But you can be agile and use your credibility and authenticity to project your brand in a flexible manner. It’s important to think about who your customer is and segment your target audience, as consumers expect an increasingly, but not overly, personal experience in the digital age.
Attracting the right talent across the East of England SMEs across the East of England are urged to invest in their workforce and, as such, many people want to work for good brands that they can trust.
SMEs need to see if there are any gaps present within the skills of their workforce and address this in future recruitment, in order to maximise on opportunities to propel your business forward. Top key takeaways for marketers in the East of England managing an SME brand: Invest in brand-building as early as possible – Don’t be tempted to leave it until later – it will provide the blueprint for all you do; it provides a cause, a mission and a purpose, and can be a tool to guide decision making. It will also help you differentiate your offering from competitors. Determine your ‘what, how and why’ – This will define your mission statement, your approach and your brand purpose. Decide on your brand values – But don’t select too many and end up creating a forgettable ticklist. Think ‘practical and authentic’; consumers demand honesty and credibility, so your organisation must live these values. Understand your market – Listen to customers and competitors. Define and target your customer closely to maximize impact. Work out what media your target customer looks at and concentrate on that. Measure everything you do – Look at the data and react to it. Change things, be agile and flexible, and stay focused on using any data gathered to further understand customer needs, and ensure your products or services are meeting these demands.
PAUL MACKMAN East of England vice chair, Chartered Institute of Marketing (CIM)
Engage your audience and respond – Creating a strong digital presence for your brand can be cost-effective and create real impact, though quality of content and consistency of message is critical. Also use social media and other channels to gather feedback and acknowledge that you are listening and responding. Partner with complementary brands – Work with others to showcase your organisation and increase brand awareness. Provide relevant added-value content in channels where your customers are and define your brand as expert in your marketplace to boost your credibility.
What could you do today to kick start or further your marketing career? Whether you’re an experienced marketing professional or just starting out in marketing, the Chartered Institute of Marketing’s (CIM) volunteers in the East of England are here to help. From face to face networking events to local training workshops, we aim to support your learning and development throughout your marketing career. To find out how you can become a member of CIM’s East of England community, visit: https://bit.ly/2J045AD
ACT I VE T RAVEL
De pa r t me nt for Tra n s p or t
BOOST TO HELP THOUSANDS MORE RAIL COMMUTERS TRAVEL BY BIKE Stations across the East of England to get share of £6.8m to help thousands more rail commuters travel by bike The Cycle Rail programme has already tripled the number of cycle parking spaces at more than 500 stations, bringing the total to over 80,000. This includes the creation of integrated cycle hubs at key railway stations, including at Hove, where 150 additional bike spaces with secure key card access and CCTV have been provided, alongside a cycle maintenance, hire and repair business. At Preston, cyclists’ access to the station has been improved by the completion of a cycle path alongside a cycle hub, providing safe parking for more than 200 bikes. Xavier Brice, CEO for Sustrans, the walking and cycling charity, said:
East of England will receive over £2.2 million as part of a wider Government drive to encourage more active travel. Passengers at 48 stations across England will benefit from 2,300 extra cycle spaces, making it easier to commute by bike. New investment takes total spending in the Cycle Rail programme to over £40 million. Thousands of rail commuters in the East of England will be able to make cycling a seamless part of their journeys thanks to a £6.8 million Government investment.
DEPARTMENT FOR TRANSPORT www.gov.uk/government/ organisations/department-fortransport
Cycling and Walking Minister Michael Ellis has today announced that 2,300 extra cycle spaces will be built at 48 stations across England - enabling commuters to cycle directly to the station and lock up their bike securely. The investment is part of the Cycle Rail Programme, which has now been backed by over £40 million from the Department for Transport and has helped tens of thousands of cyclists to make their journeys to work more joined up and sustainable. Cycling and Walking Minister Michael Ellis, said: “Cycling to your nearest station and catching a train to work is a great way to keep healthy, reduce emissions and help make our towns and cities vibrant places to live. “But to make this a reality, I know that the right infrastructure needs to be in place. This latest investment will see many more stations become accessible for cyclists, so that greener travel options – whether as part of a longer or shorter journey become the norm.”
“Walking and cycling should be the easiest way for everyone to get to their local station, making our towns and cities better places to live by reducing congestion and air pollution, and improving our physical and mental health. But it’s not always easy. “Train operators and their partners have come up with a range of schemes that will make it easier for people to get to and from their station under their own power, which we hope will encourage more people to choose cycling and walking as part of their everyday journey.” Today’s announcement includes financial contributions from wider station development projects, including the Chisholm Trail cycle route in Cambridge and 280 additional spaces being provided for ongoing improvement works at Chatham station in Kent. It coincides with Cycling UK’s national Bike Week, which raises awareness of different cycling options to get as many people as possible on their bikes. As part of the week, the Government has already launched the refreshed Cycle to Work scheme, providing employees with a tax exemption to be able to access updated bikes and e-bikes and making it easier to have a greener commute. It follows a Government push to help people to make more conscious transport choices and understand how these contribute to greenhouse gas emissions. This includes a commitment to end the sale of new conventional diesel and petrol cars and vans by 2040, investment in hybrid trains, the doubling of investment in cycling and walking since 2010, along with the £2.5 billion Transforming Cities Fund which will develop innovative public transport schemes in some of England’s biggest cities.
* Cambridge Park & Ride – Taking you into the heart of Cambridge Open seven days a week Buses depart every 10 minutes (Mon-Sat) until 6.30pm and every 20 minutes after Tickets: •
*Park & Ride Return, £3 and with this ticket up to three children travel for free
Park & Ride Group Ticket, £8.50 (purchased from driver), allows a group of up to 5 people to travel together.
Park & Ride Weekly Ticket, £14 and valid for 7 days
Every 15 minutes (9am – 6pm) Sundays and public holidays
Contactless payments are now accepted on all Park & Ride services Concessionary pass holders travel for free with their passes after 9.30am Monday to Friday, and all day at the weekend and on bank holidays. Parking is free for up to 18 hours. Charges apply for longer stays, see www.cambridgeparkandride.info for more
Further information: www.cambridgeparkandride.info
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East Anglia in Business is designed to generate collaboration, sustainable growth, competitive advantage and to build links with businesses...
Published on Jul 25, 2019
East Anglia in Business is designed to generate collaboration, sustainable growth, competitive advantage and to build links with businesses...