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INSPIRATION FOR BUSINESS WWW.THENORTHWORKS.CO.UK

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STRATEGY | LEADERSHIP | MANAGEMENT | TECHNOLOGY

Some communications guidance for weathering the financial crisis

ALSO IN THIS ISSUE >> BRITAIN IS FACING WIDESPREAD REDUNDANCY > CHOOSING A SOFTWARE DEVELOPER

Newcastle Biomedicine is a world leading collaboration of research scientists, engineers, clinicians A recognised national centre of excellence, we excel and teaching professionals. in tackling challenges in health and healthcare.

Newcastle Biomedicine joins Newcastle University with the Newcastle Hospitals NHS Foundation Trust and embraces other academic institutes and NHS hospitals in the NorthEast of England.

Our key areas of focus include ageing, stem cells, cancer, cell biology, genetics, drug development, medicine in society, and neuroscience. Our research is organised in 8 research institutes.

Our principal aim is to support strong basic science at Newcastle University and translate that into direct benefits for patients being treated in our partner NHS Trusts. This strategy has already led to major advances in the healthcare of patients within the region, nationally and internationally.

Research teams work together across traditional disciplinary divides, allowing us to integrate different and complementary skills to accelerate progress towards therapies that cure disease rather than manage its progression. It is not unusual for our clinicians and research scientists to work with geographers, sociologists, engineers and economists.

We aim to transform people’s perceptions of their own health and their healthcare. We are firmly rooted in the North-East of England, its culture, and its people. With their enthusiastic support we have been able to build research, teaching and clinical facilities that are now among the best in the world. We have a number of top class clinical research platforms, which allow a wide range of academic, clinical and commercial partners to work together.

With a large number of active commercial collaborations, our Joint Research Office, bringing together university and NHS staff, is fast developing a reputation as being a fast, efficient and effective gateway to clinical research in the UK.

Further details at www.ncl.ac.uk/biomedicine

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WELCOME 01 Is the current economic crisis another case of “following the marketplace?” At times, many businesses seem to be playing follow the leader, like herds of sheep or cattle mirroring the behaviour of the rest.

It’s time to take a step back, a deep breath, analyse our current business environment and make some integral decisions.

Below are some thought-provoking, yet fairly basic questions we should ask ourselves as business owners and organisational leaders: n Has my business been physically impacted by the economic downturn? If so, to what extent has it been

Does the current global recession truly affect your business?

impacted and how can I minimize the result of that impact? n What can I do to tactically reposition my products and services in a way that meet the needs of the current business environment and provide more value to clients/customers? n In mining my own client/customer database, which are my most likely targets for business right now?

Does it make sense to concentrate efforts on selling more services and products to these prospects with communication and appropriate sales pitches? n How can I make the best use of my current staffing to bring in the most profitable business right now?

What are some of the strengths that can be capitalised upon? n How can I procure the most targeted results - the best return on investment (ROI) and value from my expenditures?

Answering these questions and taking appropriate actions will help you avoid the following scenario that is all too familiar. If we all keep telling ourselves that since the economy is in recession, we must cut back on our staffing and spending on production and promotion, we are also reducing our ability to produce goods or deliver services and our ability to tell people what it is that we do or produce.

That is the essence of a downward revenue spiral. It is also a great example of following a path that ends in a self-fulfilling prophecy of business doom and gloom.

Don’t let this happen. It’s often the smaller companies, the privately held organisations or corporations with an entrepreneurial outlook that survive and succeed in this environment. They are in the best position to respond quickly to changing business trends and may actually prosper in this marketplace.

So win. It’s much more satisfying than losing!

dis.tinc.tive [di-stingk-tiv] - adjective 1. serving to distinguish; characteristic; distinguishing: the distinctive stripes of the zebra.

2. having a special quality, style, attractiveness, etc.; notable.

- distinctively a. distinctiveness n.

7th Floor | Aidan House | Sunderland Road | Gateshead | NE8 3HU T: 0191 478 83 00 | E: enquiries@distinctivegroup.co.uk

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NEWS BOOKMARK GADGETS BRITAIN IS FACING WIDESPREAD REDUNDANCY NORTHUMBRIA UNIVERSITY BIBBY FINANCE SOME COMMUNICATIONS GUIDANCE CLOSEGATE INDIGO MULTIMEDIA

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HARGREAVES ELSWORTH DERWENTSIDE COUNCIL CHOOSING A SOFTWARE DEVELOPER INDIGO MULTIMEDIA THINK M TAIT WALKER WEIR INSURANCE THORN LIGHTING CPI

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Editorial Office, Distinctive Publishing, 7th floor, Aidan House, Sunderland Road, Gateshead, NE8 3HU | Tel: 0191 4788316 Produced by Northumbria University 185550/10/06

Note: The views expressed by contributors and correspondents within The North Works are their own. The North Works and Distinctive cannot accept liability for any views placed via this medium. Feedback can be sought via the contact details above.

John Graham Managing Director email: john.graham@distinctivepublishing.co.uk | John Neilson Sales Manager email: john.neilson@distinctivepublishing.co.uk | Martin Williamson Creative Director email: martin.williamson@ distinctivepublishing.co.uk | Pete Thompson Production Manager email: pete.thompson@distinctivepublishing.co.uk

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04 NEWS

INVESTING IN INNOVATION County Durham Development Company (CDDC) encourages innovation and strategic investment in the County on behalf of Durham County Council and is driving the development of NETPark and NETPark Net. Here Stewart Watkins, CDDC’s managing director, reflects on the importance of innovation Investing in innovation can be a high cost, high risk activity - not all research is going to result in a profitable, wealth generating product. But without investing in innovation the UK’S ability to compete on the global economic stage would be greatly reduced.

Innovation’s importance is neatly expressed in a sentence on our regional development agency’s website: “Boosting the innovation and science capability of the North East is key to long-term improvements in regional productivity and competitiveness.”

Indeed, One North East’s regional economic strategy builds on the North East’s technological strengths in Energy, Process Technologies and Health Sciences and Healthcare, supported by Centres of Excellence established to co-ordinate the commercial exploitation of technologies and new products emerging from research activities.

It’s all a question of focus – focusing on strategic technologies and markets rather than trying to be all things to all technologies.

The Centres of Excellence are key partners for the region’s universities, helping to connect the universities’ world class science capability to the market.

They also play a vital role by reducing risk by working together, pooling resources and building up world-beating expertise in particular technologies. And world-beating facilities like the CPI-managed Printable Electronics Technology Centre (PETEC) at NETPark.

It’s all part of a supportive regional infrastructure and culture designed to provide the ideal platform for setting up manufacturing in new technologies and attracting attention on a global scale.

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MECHETRONICS SUPPORTS SCHOOL ROBOTICS INITIATIVE Mechetronics, one of the leading UK solenoid and electro-mechanical assembly suppliers, is providing equipment for Sunderland High School to encourage children to develop their engineering skills. Mechetronics, the North East based engineering company, is providing practical support to raise awareness of engineering as a career choice.

The independent coeducation school already has a majority of its students entering science or engineering based courses, but is keen to develop partnerships with engineering companies to give children a greater insight into career options.

Mechetronics has supplied five programmable robotic kits at a value of around £1,000 which have enabled a Robotic After School Club to be started, which will benefit children between the ages of seven and eleven.

Commenting Dianne Sharp Mechetronics Managing Director said: “Having recently undertaken a recruitment drive to employ good engineering graduates in the North East, I realised we needed to encourage more students to consider a career in engineering. By providing the five robotic kits I hope to highlight the strength of British engineering and to encourage them to consider a career in engineering.”

In addition to direct financial support, Mechetronics has also offered the school visits to the factory and is considering work placements for older children.

NEWS 05

AWARDS SERVE UP THE NORTH EAST’S BEST RESTAURANTS The region’s top restaurants were announced last week at an awards ceremony at The Sage Gateshead. The ceremony, in honour of the North East Restaurant Awards, saw more than 200 restaurateurs attend the only event of its kind in the region.

Fourteen categories were voted for by the public, with more than 10,000 people registering to vote, while the prestigious ‘Best Restaurant’ title, won

by McCoys Tontine was judged by a panel of North East food critics from the region’s media.

Colin Stratton, North East FSB Regional Chairman

FSB TO MONITOR LENDING The FSB is using its network of over 4,500 members across the North East to ensure that the banks keep promises to lend fairly to small businesses. FSB Bank Watch will keep a close eye on how the banks are treating small businesses following reports that small firms are increasingly being refused credit. The scheme follows a fifth of North East members reporting problems accessing finance despite the Enterprise Finance Guarantee Scheme introduced earlier this year.

Colin Stratton, FSB Regional Chairman for the North East of England: “With an extensive network of over 4,500 members across the North East, the FSB is the only business organisation that can keep an eye on the banks in this way. We need immediate action to save thousands of small businesses and this scheme will hopefully push the banks to act now before more businesses begin to struggle.

The onus is on the banks to start promoting the lower interest rates and provide more credit to small businesses within the region to fire up the economy. If the banks continue to fail to deliver, the Government must impose clear guidelines which force the banks to free up crucial capital for small businesses in the North East.”

If you are having trouble with your bank please email david.longstaff@fsb.org.uk so we are able to use your case study to help effect change.

The awards, organised by the Gourmet Society, are in their second year and include all restaurants from Berwick to the Tees.

Every restaurant in the region was automatically entered into the online voting system and it was up to the public to choose their winner.

Rob Collins, director of the awards, said: “So many local restaurateurs turned out for the awards and we have had some great feedback about how the awards are raising the culinary profile of the region. Our aim was to put the North East restaurant scene firmly on the map and to single out the very best restaurants both big and small and I think that last night more than achieved this.

“The awards have been a great success and I was delighted with the response from the public in voting for what they thought were the best restaurants across our region – it’s important to get a true reflection of what diners themselves think.”

A full list of winners and runners up can be found at www.northeastrestaurantawards.co.uk

06 NEWS

‘GREEN CONSUMERISM’ IN THE ECONOMIC DOWNTURN

Paul Sutherland of think M. assisting with the regional Smarter choices sustainable travel campaign

Many of us think a little greener these days, whether it’s recycling or leaving the car to travel to work by Metro, but has our ‘consumer conscience’ been hampered by the financial gloom?

With increasing pressures on both personal and business finances, has price become an overbearing factor for consumers and business decision makers?

Many would consider that our ‘consumer conscience’ would suffer, so where does this leave the ecomarketing scene?

You would perhaps expect that in these challenging times price would overwhelm our interest in fair trade and sustainable consumerism, but in point of fact demand for more expensive local produce for example, is increasingly strong. Mintel research shows 42 per cent of adults would like more retailers or manufacturers to source their products from local suppliers, while almost 28 per cent are happy to pay more for food if it means supporting local farmers.

Our client Daisy Green, a rapidly growing online magazine created in the North East engages consumers in contemporary ethical issues and up-todate sustainability news in fashion and beauty. With a fresh take on green, the editorial team are focussed on the practical benefits for eco-living and the lifestyle interests of its reader base. As a result readership is continuously increasing as is the magazines national profile. (See www.daisygreenmagazine.co.uk)

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It is certainly true that given the frugality of recent months, there is heightened focus on economic benefit. As a consequence, the green message is adapting. Successful eco-friendly solutions not only emphasise environmental benefits but drive home associated financial gains too.

Several regional enterprises demonstrate this approach. EOL Logistics is developing new consultancy services in support of recycling aircraft.

While UK based hulk recycling offers aircraft owners a more environmentally sound solution to exporting the problem, importantly, adopting this strategy is also financially advantageous. EOL Logistics secures greater returns through better parts and materials recovery, while improving fleet owners’ carbon footprint.

The car club network, Option C was founded in Durham but is rapidly spreading. The company provides organisations and individuals access to a car for a flat hourly rate. They have built their business on eco-friendly values but the proposition offers a whole host of practical benefits and financial savings for those organisations and individuals who need occasional access to a first or second vehicle. (www.optionc.co.uk) It seems successful advocates of eco-solutions are still enjoying ample opportunity despite tougher times, but in the downturn, better succeed by fully

integrating sustainability, strong environmental credentials and economic sense into their propositions.

As marketers, we need to keep up with changing values, leveraging research insight and identifying what really matters to our customers. The enterprises outlined are testament to the fact that green values are thriving, and the environment remains a key consumer and business priority, as long as the choice is competitive, and makes sound economic sense.

There is plenty of financial assistance available for those seeking professional strategic marketing support in the North at present. If you would like to discuss your business, and how we can help, please feel free to contact us on 0191 211 1957. think M. is a specialist strategic marketing and research agency based in the North East. The company has a growing team of marketing, research and intelligence specialists who support strategic marketing planning, channel development and the introduction of new products and services. Clients range from multinationals to regional enterprise.

NEWS 07

SMEs STILL PROFITING FROM VALENTINE’S

UNIQUETHINKING’S FLYING HIGH WITH INTERNATIONAL CONTRACT WIN

Just under half of small and medium sized companies that depend on Valentine’s Day as a main source of revenue have expressed confidence that business over the weekend will have been at the same level as last year or will increase.

A survey by Visa Commercial found that 49% of small firms directly connected to Valentine’s Day for major revenue were confident that this year would not see a decrease in profits.

The survey of gift shops, jewellers, florists, card shops and chocolatiers found that 30% of these small firms look to generate at least 10% of their annual sales during this period highlighting its importance.

Despite this optimism regarding sales, small firms are concerned about late payments, with 74% rating prompt payment as being critically importance during peak sales periods such as Valentine’s Day. Nigel Eaton, vice president of Visa Europe, said: “These results are broadly welcoming news for SMEs hoping for a good Valentine’s period.

However, payment for goods and services remains damagingly slow throughout the SME supply chain and it is important that all sides continue to work towards ensuring faster, more efficient payments to SMEs. “Matching the Government’s October pledge to pay its suppliers within 10 days would therefore be a welcome and achievable step by the wider private sector.”

The uniquethinking team (l to r) Sam Hook (MD), Lindsey Spears, Kirsty McNaught and Sarah Morgan

Uniquethinking is flying high after landing a prestigious contract to oversee the marketing for St Lucia’s leading villa resort, Windjammer Landing following a three way pitch.

The Newcastle-based firm is responsible for increasing direct bookings to the 65-acre luxury beach resort through a range of marketing solutions including advertising, PR, search engine optimisation, tour operator marketing, call centre operations and optimising its website www.windjammer-landing.com. Managing director of uniquethinking, Sam Hook, has also been invited to be on the advisory board for the St Lucia Tourist Board to assist in promoting St Lucia as a holiday destination.

Windjammer Landing is located in North West St Lucia and offers 247 villas and suites, all with spectacular views overlooking the Caribbean Sea. It is a big hit with celebrities like Richard and Judy and Claudia Winkleman as well as families and brides and grooms as it offers a great selection of beach and hillside restaurants, a luxurious serenity spa, watersports centre and golf club. The resort was also voted ‘Best Resort in St Lucia’ by the World Travel Awards 2009, dubbed the Oscars of the travel industry.

Sam Hook, managing director of uniquethinking, whose first assignment was to fly out to St Lucia last month said: “Winning this award is a fantastic coup for us and further strengthens our tourism portfolio. To add an international brand to our client list of clients is great for our business, opening future doors for us in this sector.

We’re really looking forward to the challenge of increasing direct bookings to the resort and will be working closely with the US marketing team.

Uniquethinking won the account after pitching against two London PR agencies for the ongoing contract which started in December.

Anthony Bowen, managing director of Windjammer Landing added: “We were looking for a company which stood out in terms of creativity and when we met the uniquethinking team in London we were really impressed with their fresh approach and understanding of what we need. It’s tough for the travel industry right now so we’re delighted we have a company like Uniquethinking on board to direct our marketing efforts”.

Uniquethinking works for a range of clients both in the North East and nationally including the Association of British Travel Agents, Learning and Skills Council, B&Q and most recently secured the contract to provide PR for Costa Coffee in the North.

Last month the Uniquethinking team also organised and promoted the North East Restaurant of the Year awards in conjunction with the Gourmet Society where more than 300 restaurateurs turned out to celebrate the best restaurants in the region.

If your company needs some uniquethinking contact Sam or Kirsty on 0191 226 880 or sam@uniquethinking.co.uk

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BOOKMARK 09 Exploring Corporate Strategy Over 750,000 students worldwide have used this best-selling book to understand and explore strategic management through their academic and professional careers.

Available in two versions (Text and Text & Cases), Exploring Corporate Strategy has established a reputation as a pre-eminent textbook in its field, based upon the expertise of authorship, range of cases, depth of commentary and wealth of supporting resources.

The 8th edition builds on these strengths, including coverage of key topic areas in this fastmoving discipline such as internationalisation, innovation and entrepreneurship. It is written for students of Strategic Management at all levels.

Small Business Management Now in its 5th edition, this comprehensive, practically focused and highly accessible text explores the contexts, choices and strategies facing the small business venture, including extensive coverage of planning a new venture. Pedagogical features developed in response to market feedback include running case material to explore the same case situation from a number of different but interrelated angles, annotated further reading, new chapter-end real world case studies, learning objectives and linked chapter summaries providing a student- and lecturer-friendly learning environment. Students on modules such as Personal Development and Effectiveness, Study Skills, Management Skills, Business Skills, Business Communication, Business Awareness, Managing Oneself and Others at for example BABS/BABA, HND/HNC, DMS, MBA levels will all find this a hugely valuable text through study and working life.

How to Lead This provocative yet practical book, is the essential guide to the theory and practice of leadership - whatever your level in an organisation. It’s both an indispensible yet entertaining guide to the core skills of leadership and a practical handbook for getting to the top and staying there - the single book guide to a successful career.

A unique and brilliant combination of authoritative guidance and stimulating and entertaining advice, it includes novel material on career limiting moves, advice on what to do when you look like you are about to become an involuntary member of the cock up club and how to lead by following.

This leadership handbook will help managers become leaders and help them rise to the top.

It is the single book, whole career guide.

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10 GADGETS 1. SpinVox: Imagine having messaging so smart, it automatically turns your voicemail messages into text.

1

1. SpinVox

About SpinVox

Imagine having messaging so smart, it automatically turns your voicemail messages into text and forwards them to your mobile.

SpinVox converts any voice message to text and delivers it to any screen - mobile phone, PDA, PC, TV - through services, which have been developed for network operators, businesses, consumers, media and internet-based companies.

Now with an innovative service from SpinVox no longer do you need to dial up to retrieve your voicemails – great for when it’s too noisy, you’re too busy or it’s just inconvenient. ®

SpinVox converts your voicemails into text and delivers them to you as SMS, email or both. So you can scan, save, forward, search and store them – all that efficient digital stuff.

And with one click you can talk a text message back.

Why not try this service for yourself? SpinVox is offering readers a one-month free trial at www.spinvox.com/freemonth, which then moves on to a £5 per month for unlimited conversions at the end of the trial.

And if you’re interested in what this voice-to-text service can do for your business email sales@spinvox.com

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Built on a highly sophisticated, patented speech recognition system SpinVox developed a world first – an entirely new category of communications called Voice-to-Content™, working quickly and accurately in English, French, Spanish, German, Italian and Portugese.

Terms and Conditions of the free month offer of SpinVox Offer applies to those who pay monthly on the following UK networks; O2, T-Mobile, 3, Orange,Vodafone. The free trial is for 30 days of normal usage. Two days before the end of the free trial, you will be notified by SMS that you will be enrolled in our unlimited usage service at £5 per month. At that time, you will be given instructions on how to opt out of this offer. Please review our full T&C’s and Privacy Policy before participating in this free trial. Offer excludes existing or previous SpinVox Voicemail users. Fair use policy of Unlimited means up to 500 voicemails/month. One free trial per mobile number. This offer ends 31st May 2009.

12 FEATURE

Britain is facing widesprea The Office for National Statistics showed GDP (Gross Domestic Product) growth at zero per cent between April and June 2008. As a recession is defined as two or more consecutive quarters of negative GDP, and taking into account the current economic climate and the unemployment jump in August 2008 it is evident we are facing a downturn. The recent fears show that the number of people that are unemployed will break through the two million level by Christmas, draws the conclusion of an increase in redundancies, and not just in the city either.

Redundancy is a potentially fair reason to dismiss and with the ‘credit crunch’ in full swing it is vital that companies get this procedure right as failure to do so could result in an unfair dismissal claim at the employment trib tuation arises when a company has ceased to operate, has moved to a different place or the companies’ need for work of a particular type has ceased or diminished, or is expected to.

Redundancy Procedure The employers must follow the statutory dismissal procedures before dismissing an employee on the grounds of redundancy. Such procedures should be outlined in the employment handbook. Principally an employer must: 1. Write to the employee letting them know that they are at risk of redundancy, detailing the situation and inviting them to a meeting to discuss the matter further. They should then follow a period of consultation with all affected employees who have been put at risk. If no alternatives have been found during the consultation period then the employer should write to the employee again inviting them to a further meeting, confirming that the decision has been made to make their position redundant.

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Employers should let the employee know that they are entitled to have a representative with them at the meeting that can either be a work colleague or trade union representative.

2. Hold a meeting with the employee and notify them of the decision reached, allowing time for an adjournment. The decision from the meeting should always then be communicated to the employee by letter and should also inform them of their right of appeal.

3. If the employee wishes to appeal, an appeal meeting should be arranged. The employee should be advised of the final decision in writing.

Helpful guidelines n Record keeping and thorough documentation is a necessity. Well-prepared documentation regarding the employee will help back up any redundancy decision, especially if it is their job that has ceased. n The employer must clearly explain the reason for redundancy. >> >> >> >> >> >> >> >> >> >> >> >>

MANAGEMENT 13

pread redundancy

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14 FEATURE >> >> >> >> >

n The letter to the employee informing them that they are at risk of redundancy must make it clear that no final decision has been made.

Consultation with employee representative

n It is essential to record the minutes of all meetings as this allows the employer and employee to hold an accurate record of what has been discussed.

Consultation is essential; the steps taken here will depend on the number of redundancies you need to make. There are four areas which need to be covered clearly in the consultation:

Key tips for the redundancy process Whether you have five or 100 employees it is important to keep them up-to-date and in the picture, giving as much warning as possible. One of the main things an employer can do is keep their employees informed at each step of the way. Make sure employees know and understand the situation and that they could be at risk.

Keeping employees involved prevents rumours from spreading across the work force and a low staff morale. Consult with your employees; spend at least 20 minutes with each department. Together you might be able to work out which departments can be slimmed down, staff may be willing to cut hours rather than employees lose their job. A tribunal will not criticise how a business is run; only the way the employees are dismissed.

Remain objective and ensure that a fair selection criteria is used when deciding which employees will be made redundant. If a particular department is affected by the possibility of redundancies and there are five individuals who carry out the same role but only two are now required, be objective. It is not recommended to use ‘last in first out’ and it is important to note that part-time employees have the same statutory rights and protection as full time employees. The correct process must be followed.

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1. The number and category of at-risk employees 2. Method and criteria of selection 3. Procedure as to carrying out the dismissal - statutory procedure 4. How the redundancy payments will be calculated Use a selection criteria (points based system) to work out general performance and what each individual brings to the business. Employers should look back over the annual reviews, attendance and disciplinary record. This will ensure that the selection for redundancy is objective and fair and in accordance with the criteria set.

An employment tribunal will take into consideration, whether the employer considered any suitable alternatives for the affected employees; if the employer hasn’t, the tribunal will consider whether a dismissal was unfair. However, if an employee unreasonably refuses an offer of suitable alternative employment they will lose the right to a redundancy payment.

Redundancies of 20 people or more ‘collective redundancy’ must be discussed with a recognised trade union, plus the Department of Trade and Industry must be notified 30 days before the first dismissal takes place. If there are more than 100 employees involved this period increases to 90 days.

Communication is a key strategy in redundancy, it prevents rumours from starting, and it makes the employees feel part of the situation. More importantly remaining employees will remember how well or how badly you treated your staff.

NORTHUMBRIA UNIVERSITY 17

DEDICATED TEAM GIVE BUSINESS UNRIVALLED ACCESS TO UNIVERSITY EXPERTISE Businesses across the North East, the UK and the globe are benefiting from first class training, knowledge transfer, research and development and student placements thanks to a dedicated division at Northumbria University.

Set up over 20 years ago, Northumbria’s Commercial Enterprises (NCE) provides business with a gateway to the university’s expertise.

NCE Director Tony Hackney and his team provide a vital direct link for businesses who want to benefit from the wealth of research, knowledge and expertise at Northumbria.

Tony says: “Partnership working and knowledge transfer is essential for business in the global economy and it is especially important in the current economic climate.

We can offer real tangible support to business by providing bespoke training to improve the skills of both managers and staff, access to the university’s technical and research facilities and direct access to intellectual property.”

Major companies such as Procter & Gamble and Northumbrian Water have benefited from partnership working with Northumbria University, along with SMEs such as Cramlington-based Osborne Engineering.

Dudley-based Owen Pugh is also working with NCE to develop its workforce skills. The company’s diverse business includes construction plant hire, earthmoving and demolition contracting and aggregates. Managing Director John Dickson says: “Our business has grown from a small family run business into a diverse business with a wide range of clients and equipping our managers and staff with the right skills to meet the future challenges of the business is essential.”

As well as supporting business in the North East, NCE also works with companies around the globe. It was a Regional and National Training Award Winner in 2008 at the UK Skills National Training Awards and Northumbria is one of only a few UK universities to have been approved by the Chinese Foreign Experts Bureau.

More recently NCE are now registered with the Institute of Leadership & Management (ILM) as a Provider of the following Endorsed Programmes: The Assertive Manager; Creativity; Leading a High Performance Team; and Communication Excellence.

To find out how your business can benefit from working with Northumbria University, contact Northumbria Commercial Enterprises on 0191 227 4148.

Osborne Engineering operates across five continents and is at the cutting edge of design and manufacture of white metal components for the oil and gas, power generation and petrochemical industries. With six Northumbria graduates now in management and senior staff positions, Managing Director Shukri Benfaied believes the company has benefited directly from a 10 year collaborative partnership with the university. He says: “The partnership has enhanced our research and development, stimulated knowledge transfer and ensured that first class North East graduates have invested their talent and intellectual property in the region. It’s a winning formula for education, business and the regional economy.”

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18 BIBBY

“

As the economic outlook remains uncertain, the UK’s number one independent invoice financier Bibby Financial Services is advising the regions small and mediumsized businesses to ensure they are wellequipped whatever the forecast.

BIBBY FINANCIAL SERVICES HELPS BUSINESSES IN THE REGION TAKE THE BITE OUT OF THE CREDIT CRUNCH Many traditional finance providers have reacted to the change in global financial conditions by reducing their exposure to the small and mediumsized business market and imposing stricter lending criteria that owners and managers simply can’t meet. This has resulted in a significant rise in borrowing costs for business owners and managers, while start-ups access to funding is becoming increasingly challenging.

Graham Cooper, Bibby Financial Services spokesperson for the North East, comments: “The good news is that banks are not the only option for the regions firms who are looking for means to boost their financial stability as many now opt to work with providers of alternative funding such as ourselves”.

“Invoice financiers typically take a much more in-depth view of a client’s business and take in to account the entire financial picture when making a funding decision.

In addition, extensive credit history is not required; instead the sales ledger of the business is used to secure its access to funds.”

As sales invoices are raised, the invoice financier advances a percentage of the value, providing an immediate injection of cash in to the business, with the remainder, less a small service fee, going to the business once payment of the invoice is secured. Many invoice financiers will also handle the chasing of outstanding invoice payments on their clients’ behalf to avoid time-poor owners and managers devoting precious time to chasing outstanding payments.

Charlotte Ridley of The Building Maintenance Company (BMC) is one such client who called on Bibby Financial Services for help with cash flow for her start-up business. Charlotte says: “Bibby Financial Services helped us with the financial set-up of BMC right from day one and stabilised our cash flow through invoice finance facilities. After our first year, I was more than happy to renew our relationship as I still needed and valued the solution. Bibby Financial Services has been hugely helpful, and I am sure in light of the credit crunch, there are many more businesses in the area that could benefit from enlisting its support.”

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“Despite the current economic uncertainty, there are still plenty of cost effective and flexible funding opportunities for business managers or firsttime entrepreneurs.”

Graham Cooper concludes: “Despite the current economic uncertainty, there are still plenty of cost effective and flexible funding opportunities for business managers or first-time entrepreneurs. And with careful financial planning there remains every opportunity to become a thriving and successful business and benefit from the regions burgeoning entrepreneurial culture,” For further information please contact us on 0191 516 9933 email khedley@bibbyfinancialservices.com or visit our website at www.bibbyfinancialservices.com

Stop it….

Some children are stuck in a destructive cycle. But you can make it stop. Show that you believe in children no matter what.

‘Help Barnardo’s believe in children’ As one of the UK’s leading children’s charities, Barnardo’s believes in children regardless of their circumstances. We believe in the abused, the vulnerable, the forgotten and the neglected. We will support them, stand up for them and bring out the best in each and every child.

“Barnardo’s work in the North East has covered three centuries - the 19th, 20th and now the 21st. We began with children’s homes, bu t now we run over 50 different services across the region, including counselling for children who have been abused, fostering and adoption services, vocational training and disability inclusion groups.

Our area covers Northumberland, Tyneside, Wearside, County Durham and Teesside and on average, we work with around 13,000 children, young people and their families a year.

Will you help us help North East children? We are looking for people interested in fundraising for us by forming professional fundraising groups. Could you organise an event, a Ball, a murder mystery night? Do you have skills which could help us help disadvantaged children get the best out of life?

For more information, please contact Suzi Campbell on 01748 850939.

St Oswald’s Hospice, in Gosforth, Newcastle are nearing the end of their state of the art extension.

There’s been continued growth in demand for outpatient services at St Oswald’s over the last few years, most notably for Lymphoedema management and Complementary Therapies. This trend is set to continue, yet there has been no corresponding enlargement in treatment areas.

The plans for the three-storey Outpatient Suite, include eight treatment rooms, a dedicated reception area, an information area and an assessment room, as well as accessible parking and landscaped gardens.

Next steps for the project include: knocking through from the existing Day Services building to the new suite and sourcing fixtures and fittings. If the build remains on schedule, the work will be completed by the Summer.

If your company is able to help us fit out the extension please contact Anita Irving, Fundraising Manager on 0191 285 0063. Your help is greatly appreciated, as it will help us to help so many other North East adults.

The extension is being funded by a Department of Health Grant, St Oswald’s reserves and a private capital grant appeal.

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STRATEGY 21

Some communications guidance for weathering the financial crisis

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22 FEATURE

As much as anything, what people are craving right now is some guidance onwhat to say to employees, customers, partners, the media and others about how the financial crisis is impacting their business. Unless you work on Wall Street, what’s been going on is largely a mystery, and unless it has walloped you directly, it’s a little hard to know what to say about it. Any help is appreciated. > > > > > > > > > >

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STRATEGY 23

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24 FEATURE

>> >> > >

n Most importantly, stay focused on the long term. This crisis will pass;

there will be fallout, but the global economy will continue on. This is an opportune time to broaden interaction with stakeholders; to think globally; and to begin employing innovative communications tools such as social networking and online strategies, to support corporate business goals and strengthen those critical stakeholder ties. n This is not a good time to cut back on employee communications. In

fact, constant and open dialogue between company leaders and employees is essential during times of uncertainty. Clearly all of this external communications needs to map as well to internal communications -both formal and informal. Senior management will want to understand this media dynamic and why story lines are being altered - but broader employee communication will be of value in maintaining morale and helping the company as a whole understand how its story is being told in a media climate that is lunging from headline to headline. Now is the time for CEOs to be more visible than ever before, not less n Utilize every communications channel. Organizations need to move

beyond (but not exclude) traditional media communications. This includes a heavy focus on direct stakeholder interaction (global citizenship, investor relations, employee communications, to name a few key elements). The use of online and social communications tools, from blogging to tweets, opens up new avenues for organizations to build communications bridges beyond mainstream press. n Be authentic. Not just today, but every day. Transparency and

global citizenship are increasing in importance every day, and are key differentiators in the marketplace. Given the current degree of media scrutiny and public skepticism over the motives behind corporate behavior and performance, an organization’s activities - and to whom and how they are communicated - must be ethical, authentic and credible. Indeed, we believe that authenticity will become the single biggest defining factor for successful corporations and those who lead them into the future.

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The hazard of fire to commercial and industrial properties still remains a constant threat with the risk of severe interruption or closure to your business.

From the 1st October 2006 new fire regulations came into force, namely the Regulatory Reform (Fire Safety) Order 2005 which applies to virtually all workplaces.

The Order states (Section 21) that employees must be provided with adequate safety training.

At Barmston Mere Training Centre we offer both theoretical and practical training giving your staff a greater awareness of the threat posed by fire to people, property and business continuity. Our courses include:

Our courses include: n Fire warden n Fire safety n Fire extinguisher n Fire safety for residential care n Fire safety in construction n Manual handling n Leadership, communication and motivation courses The above training list is not exhaustive as courses can be customised to suit the needs of your organisation.

For more information visit our website at www.twfire.gov.uk/btc or contact Eileen Armstrong on 0191 444 1753 or email commercial. training@twfire.gov.uk

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26 FEATURE

Haymarket Hub Work is well under way on the redevelopment of one of the city’s busiest metro stations. Used by 120,000 passengers each, Haymarket’s unassuming single storey station is in the process of a dramatic transformation into a four storey, steel-and-glass encased hub.

When complete, in addition to the Metro station, the Haymarket will offer retail units on the ground floor (most of which are already let) and office space on the upper floors.

Construction started in June 2007, but as the station has had to remain open throughout the development, logistics have been quite a challenge. Piled foundations between 30 and 50m are now in place, and the exterior steel structure framework is being constructed around the existing building, enabling the station to remain open to passengers. Once complete, the old station will be removed.

The upgrade, which includes the installation of lifts and a third escalator as well as new colours and signage, is part of Nexus’s £600 million reinvigoration programme. The design will freshen up the station and create a more open, brighter environment for the six million passengers who pass through it each year, while making it accessible for all.

Ken Hunt, director at Closegate Developers, claims the Haymarket Hub is a 21st century building. ‘’The design will achieve an iconic building at the northern gateway to the city,’’ he claims. ‘’The area around Northumberland Street needs further investment and hopefully Haymarket Hub will set new standards for design in the area.’’

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CLOSEGATE 27

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28 INDIGO MULTIMEDIA

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Quirky Northumberland store attracts orders and raises profile around the world thanks to its new website

NORTHUMBERLAND SHOP ATTRACTS WORLDWIDE ORDERS ONLINE RE, an eclectic lifestyle interiors store based in Corbridge, Northumberland, sells a wide range of unusual, REcycled and REscued objects and now shoppers from as far afield as the USA, Hong Kong and Australia are ordering goods through its online shop - www.re-foundobjects.com Inspired by their background in fashion and globetrotting experiences Simon Young and Jenny Vaughan started the business in 2003. Jenny said: “We set up the shop using a converted workshop behind a filling station in Corbridge and swiftly launched our first mail order catalogue in May 2004.

“However we always understood that the internet would be an important part of our sales and marketing strategy, and we were keen to have an online presence that captured the fantastic atmosphere of the store, while allowing customers to browse and buy our goods.”

Indigo Multimedia, a new media agency based in Newcastle-upon-Tyne, was commissioned to design and build the website. Simon said: “The team at Indigo came up with some really creative and exciting ideas on how we could develop the online sales side while ensuring the website was simple for both us and our customers to use.”

Following the launch of the site, visitors quadrupled and orders placed from customers based all over the world started flooding in. Jenny explained: “We were receiving hundreds of orders per day through the website. The site let the business operate 24-hours-a-day seven-days-a-week. Orders are processed automatically and are linked to stock control. Indigo also set up an online system to let us check order history and user accounts. Without this technology we would have found it very difficult indeed to meet the high demand.”

During the course of the past year the website also helped raise the profile of RE on a national and international scale. Using carefully thought-out SEO techniques coupled with a thorough linking strategy, the reputation of the website continues to be built up.

Andrew Graney, web director at Indigo Multimedia, said: “The website is optimised for internet search engines such as Google and Yahoo, and is more likely to be

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listed in search results. And by linking to other websites that are relevant the website has achieved a level of authority and credibility with the search engines, supporting online sales targets.”

It is this integrated approach that has helped RE achieve recognition nationally and internationally. Press coverage has been extensive and includes pieces in glossy magazines such as World of Interiors, Elle Decoration, Country Living, and Homes and Gardens as well as coverage in weekend supplements and local publications. Jenny said: “Obviously we always do press previews for new products and collections but we also find that the website is used extensively by the media.”

All the hard work has paid off; www.re-foundobjects.com now attracts an average of 20 thousand page views per day, 90% of all mail orders are now taken through the website, and the businesses’ profile has heightened significantly.

The website was even short-listed for Yahoo!’s Finds of the Year campaign, an annual award for the most interesting and innovative websites.

To find out how Indigo Multimedia can help you create a website, please contact Andrew Graney on 0191 209 2100 or visit www.indigomultimedia.com

HARGREAVES ELSWORTH 29

INTELLECTUAL PROPERTY IN THE CREDIT CRUNCH In 2008 the UK Trade Marks Registry received a number of applications to register trade marks that included the words “CREDIT CRUNCH”.

The goods varied from potato crisps, chocolate bars and beer, to travel services!

Whilst these applications may in themselves be trivial, what they represent, i.e. securing intellectual property rights during a recession is worthy of deeper consideration.

The owner of an intellectual property (IP) right enjoys a limited monopoly. In times of economic uncertainty the ability to exclude competitors from a market place can be of considerable value. However, through the judicious use of IP rights business owners can not only protect against competition through the downturn, but can place their businesses in a better position, relative to their competitors, to exploit the upturn when it arrives.

The recession may also present opportunities that do not arise in periods of economic boom. For example: n Failing businesses provide opportunities to acquire valuable intellectual property

portfolios. n Competitors may be filing fewer patent applications, resulting in the market

place becoming more open, and potentially making it easier to obtain patent protection for improvements to existing products, and allowing those businesses filing patent applications to strengthen their relative positions.

®

n Consider whether you are receiving value for money from intellectual property

service providers and look for innovative ways to reduce costs. n An internal review can identify those areas that add most value to the business

and are worth pursuing. For new filings, it is important to consider which ideas are worth protecting and in which particular strategic markets. n There are ways of making money from existing intellectual assets, such as

licensing or selling patents to others. Now may be a good time to explore those opportunities.

It is those companies who invest in product development and protect that development with intellectual property rights now, who will be in the strongest position when the economy takes off again.

Written by Juliet Scullion and Dominic Elsworth of Hargreaves Elsworth Patent Attorneys.

Hargreaves Elsworth Patent Attorneys is an independent firm having particular expertise in developing IP strategies and managing IP more efficiently, with three of its members having formerly run in-house intellectual property departments at AGCO Corporation, Mayborn Group and ICI. For information please contact Dominic Elsworth on 0191 211 1974 or delsworth@heip.co.uk

n Infringers who may have fought court action may be more likely to settle purely

because of the costs involved.

Undoubtedly though, many businesses will be looking for ways to make cost savings and intellectual property budgets need to be scrutinised as carefully as other budgets.

However, failing to protect intellectual assets (patenting ideas or registering designs and trade marks) during an economic downturn could leave businesses vulnerable and unable to retain market share when the economy eventually picks up.

Rather than holding back on protection of IP in new products, businesses should review the performance of their current IP strategies and management systems.

It is possible to continue to protect current and new IP assets - but at lower cost.

The following suggestions are just some of the ways in which to manage your company’s IP spend: n Sort out an IP strategy for your company and follow it, rather than dealing with

matters on an ad hoc basis. Developing a strategy will allow costs to be better forecast and controlled. An intellectual property strategy would consider many factors including the countries where intellectual property should be protected.

Getting this one aspect of strategy right can save huge sums of money. n Sometimes it is not the actual cost of protecting IP rights that is the problem,

but when that money must be expended. If this is the issue, consider how the system can be used to defer costs, even if that means ultimately paying more. n Could the internal management of your company’s IP be improved? Is

significant staff time and other resource being devoted simply to dealing with intellectual property rights? This can easily happen, even with an IP portfolio of modest size. Management systems are available to reduce these burdens. They also have the added benefit of allowing management to see quickly what intellectual property rights are owned.

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DERWENTSIDE COUNCIL 31

We will see the creation of up to 200 new jobs which will be a huge boost to the economy of Derwentside

£6.8 MILLION OFFICE DEVELOPMENT AT TANFIELD Work has started on Derwentside Council’s most ambitious development project at Tanfield Lea, near Stanley in Co Durham. The £ 6.8million Tanfield Lea Business Centre has been made possible with funding from the District Council, One North East, County Durham Economic Partnership (CDEP) and the European Regional Development Fund (ERDF). To mark the occasion, the former Chairman of Derwentside District Council, Councillor Olga Milburn, performed the turf cutting ceremony on site together with representatives from the appointed constructors, ROK, architects and lead designers of the centre Browne Smith Baker and project managers Entec UK. This iconic development will provide 40,000 sq ft of modern office and workshop accommodation for businesses in a revolutionary, three-storey building which is targeted at both new and existing businesses and will include a new approach to lettings in order to encourage young entrepreneurs to pursue self-employment.

Facilities in the business centre will include: n 3 floors of modern office space including a communal atrium with kitchen

facilities n 45 office units ranging in size from over 100 to over 1000 sq ft n Fully equipped conference and meeting rooms for hire n Fully manned reception providing a wide range of office services n Telephony and Broadband connectivity n Car parking facilities n 24 hour access to individual office units

The business centre is located in close proximity to the A6706, direct link road to Gateshead and Newcastle.

Councillor Olga Milburn, former Chairman of Derwentside District Council said, “Tanfield Lea Business Centre is an extraordinary development which will build upon the existing portfolio of modern office space in the District. We will see the creation of up to 200 new jobs which will be a huge boost to the economy of Derwentside and represents a solution in satisfying the ever growing demand for modern business floor-space.

It is envisaged that this major development will have a significant impact on the economy of Derwentside and ensure that public sector developments continue to lead the way in encouraging economic growth and sustainability in semi-rural locations.

ROK Area Leader Neil Jukes said “This is a flagship scheme for ROK and we believe that this is a key project to continue the growth and redevelopment of the area. We will be employing local people to successfully deliver this project over the next year. “ Tanfield Lea Business Centre is aiming to achieve a high BREEAM rating (British Building Research Environmental Assessment). Phase 1 of the project is due for completion by September 2008, with the opening of the Business Centre planned for March 2009.

For further information contact Andrea McGuigan, Business Centre Manager on 01207 693902 or e-mail a.mcguigan@derwentside.gov.uk

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32 FEATURE

It is vital to ensure your current hardware will be compatible with the newly designed software

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TECHNOLOGY 33

Ten questions you need to ask when choosing a software developer Choosing appropriate computer software can be a daunting task for many business owners.

Some businesses choose to purchase off-the-shelf packages but many see the advantages in commissioning bespoke software that has been specifically designed to accommodate their needs.

In an era so technologically advanced, many can feel out of their depth when deciding on software that will benefit their business.

Here are ten questions decision makers in business should ask when sourcing a software developer, to avoid any of the pitfalls.

1. Will the software work on your existing hardware and operating systems?

It is vital to ensure your current hardware will be compatible with the newly designed software. Discovering that you need to buy a server, new PCs or an upgrade for your operating system is an expense that could have been avoided.

2. Who will own the Intellectual Property (IP) of the finished system?

In order to avoid problems in the future, find out if you will have exclusive rights to the software system that has been created. If your business will own the IP, ask if there are any third party components that will be used that you will not own.You may be left facing further unnecessary charges for future software use and your competitors could benefit from software you paid to be developed.

3. What programming technologies will they use, and why?

It’s not uncommon for some software developers to only work with technologies they prefer using. Ensure the developer is using programming languages that are appropriate for your project and ask them to explain the reasons why they are best suited to increasing efficiencies for your business.

4. What are the ongoing costs for the system?

Ongoing costs for the system could include things such as hosting, licenses and maintenance. All costs should be outlined in an agreement prior to the system being built to avoid any surprise costs further down the line.

5. Does the developer have a snagging period?

Systems can experience the odd glitch when they go live.

Developers should allow for a certain period of time after the system goes live to rectify any problems free of charge. Agree this with them before the software is developed. Time periods may vary depending on the size of the project but a reasonable amount to request is between one and three months.

Obviously try and negotiate the longest period you can.

6. What are their response times to emergency situations?

It’s essential that you are fully aware from the outset how quickly the software company can respond should something go wrong with the system. More importantly, find out what the company classes as an emergency.

7. Is it possible to develop the software further in the future?

Discuss the plans you have for your business going forward with your software developer in your initial meetings. You need to ensure they are capable of providing software that will not only be sufficient for your current needs but will be compatible with future growth. It may be far more cost effective to look at the longer term than have to create new software further down the line when your needs change.

8. Will the developer be outsourcing any of the work to other organisations?

Make sure you understand from the outset exactly who will be working on your software. If any is to be outsourced you will want reassurance about the third party company and to confirm their credibility. If work is to be outsourced it will be worth comparing the quote with a company who will do all the work in-house. Outsourced work may be subjected to a price mark-up, increasing the amount you will pay.

9. How will data in the system be backed up?

It is essential to find out what security measures will be in place to ensure your data isn’t lost in the event of a system failure. Ask your software developer to describe in detail the procedure for backing up information and how it can be recovered. There are both online and offline methods of data storage and remote data back up could save your business from financial ruin. Imagine the catastrophic effect on your business of losing all your data and ensure this is a critical part of your software selection procedure.

10. Can your developer provide testimonials?

The simplest method o f checking the credentials of a software developer is the one most overlooked. Ask for them to provide details of past clients and take the time to contact them for testimonials. Happy customers won’t mind recommending your software developer but alarm bells should start ringing if they are unable to provide any.

Michael Hawthornthwaite is managing director of Acid Computer Services. Acid provides bespoke software, database and web application solutions to UK and worldwide businesses and specialises in customer relationship management (CRM) and data management software. For more information visit, www.acidcs.co.uk

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Solving Business Problems, Dispute Resolution & Honest Broker When reason and negotiation fail, wouldn’t you like to avoid the cost, the stress and the time that goes into every court case? Then call us first.

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All of our reports provide accurate measures, recommendations with reasons why based on hard information and not simply on our opinions Your report is designed to be used and our process will ensure that your staff will be motivated and mobilised ready for action!

Positive Actions For Positive Outcomes

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INDIGO MULTIMEDIA 35

Online communication techniques and trends emerge on a frequent basis, and video is the latest to join the hotlist.

SWITCH ONTO ONLINE VIDEOS Online video, also known as internet TV, is fast becoming a popular way for businesses of all sizes to connect and engage with customers, because it makes it so easy for people to visualise and understand information.

An increasing number of websites feature video content to keep users interested; the rise in online video websites, like YouTube, Skyplayer and BBC iPlayer, have taken off in a big way and can be attributed towards its popularity. Barack Obama’s inauguration as US president, for instance, led to a record number of video streams and a massive surge in online traffic across the internet.

While online video has already dramatically affected news and TV consumption, it also offers many different and exciting ways for businesses to share content and engage with consumers. For example, training courses, marketing materials, product advertisements, and corporate presentations can all be transmitted using online videos. So, whether it’s a ‘screencast’ demonstrating how to use a particular piece of software or a Managing Director’s annual speech, online video can provide an effective, efficient, and personal way to grab people’s attention.

Many companies also use online videos to circulate information with staff to help improve internal communications. For example, staff can listen to sales briefings, product positioning, competitor analysis and pricing news remotely from their desk.

Indigo Multimedia, a new media agency based in Newcastle-upon-Tyne, recently won Best Use of Online Film and Video in the 2008 North East Digital Awards.

The agency’s online video director, John Adams, said: “There’s no question that some stories are best told in moving pictures, and video provides an opportunity to engage and build trust with the user in a way that text and images can’t.”

The increasing popularity of online videos is also largely thanks to ever-improving connection speeds; a massive 90% of internet connections in the UK are now through broadband. Online video also continues to enjoy an increase in viewers; recent statistics from Forrester show that over half of all adults regularly view videos online.

Andrew Graney, web director at Indigo Multimedia, explained: “Large numbers of people are watching TV or video online and the ability to take control of viewing is motivation for many. However, the attention-span of a web user can be measured in seconds; many tend to click elsewhere after a minute if their attention isn’t maintained. This means it’s critical that videos are kept entertaining and informative throughout.”

Online video offers what was once limited to expensive TV advertising: reach and emotional engagement with potential customers. It also often offers great return on investment. Popular videos can keep on getting views sometimes months after they’re launched online.

John concluded: “There is nothing else that comes close to the persuasive power of a well-designed, well-scripted video message. By focusing on authenticity and quality, and by providing a clear call to action for viewers to follow, video can become a valuable addition to any online marketing effort. If a picture is worth 10 thousand words, then the value of online video is unbeatable!”

10 rules of online video engagement: 1. Be clear. Provide a big, clear play button in the middle of the thumbnail image to show that it’s a video and choose a meaningful still that’s reflective of the content to convince users to watch the video.

2. Remember quality. People tend to spread the word about negative experiences faster than positive ones. When it comes to videos, if it’s worth doing at all, it’s worth doing well.

3. Be authentic. Customers are jaded by typical sales-pitches. An authentic video that captures the human element allows customers to connect on a personal level.

4. Make it relevant.Video that works share compelling stories that resonate with the audience. Respect viewers’ time and provide them with actionable content.

5. Make it engaging. Good information is no longer enough; video must deliver content in a format that interests and excites users. Consider including a feedback box for other readers to leave comments.

6. Don’t forget Universal Search. Search engines now weigh video heavily. Good meta-data, file naming, and distribution on websites like YouTube all help.

7. Provide a transcript. Create a text version of the video so that the content is accessible not only to the visually impaired but also to the search engines.

8. Use sound. An effective video powerfully combines sound and vision. A video with no sound screams out ‘amateur’, and has no hope of sustaining a viewers’ interest.

9. Call for action. Provide a call to action, a trackable URL to visit, a coupon or discount code, or a unique phone number to call. This way the video can be evaluated against other marketing efforts.

10. Share it. Consider syndicating your content to other sites and promoting teasers on sites such as YouTube to increase awareness of your offering.

To find out how Indigo Multimedia can help you use online video, please contact John Adams on 0191 209 2100 or visit www.indigovideo.co.uk

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think M. 37 ACHIEVING THE IMPOSSIBLE - GROWTH IN THE CONSTRUCTION SECTOR

Is anybody still claiming its business as usual.... surely at some level we have all been affected by the growing recession? I’m sure many of you have been invited to talks about preparing for tough times, hoarding capital and survival tactics.

Polarised markets are now apparent in diverse sectors as demand and supply shift to economy or luxury. Clear winners are emerging already with certain economy retailers boasting of higher revenues and increasing spend on TV advertising; we’ve also seen buoyant sales of DIY products and even energy saving light bulb sales are rising.

In my mind’s eye this is, at this stage as much to do with good fortune as it is good strategic planning, but this will not be the case over the coming months. If you have a clear strategy for success in the recession, are fortunate enough to be liquid and have a strong financial position, you could potentially fair much better than your rivals.

One of our clients, Engineered Offsite Systems (EOS ) is a UK based manufacturer of light gauge steel frame solutions for the European construction industry. Like most in the sector, the collapse of the property market has had a significant impact on their forward outlook.

The company however pride themselves on creative thinking and are involved in a number of leading edge initiatives in the construction industry. While the underlying demand for their solutions looks healthy in the long term, the management team recognised their market is likely to further consolidate and competitive pressures will reduce prices in the coming quarters.

EOS identified that the deepening recession is prompting more of us to take holidays in our own country. Bookings for UK breaks next year are up, and the economic downturn is the “biggest opportunity to sell Britain ever”, according to major UK tour operators. While the price of overseas holidays is set to increase by around 10% next year, UK breaks are likely to go up by only 3%.

Secondly, a range of factors are increasing interest in second homes in the luxury end of the market. Drivers

range from land owners seeking to maximise estate revenues in the current climate, to wealthier ‘Baby Boomers’ wanting to release investment from pensions into ‘lifestyle investments’. Research identified that discerning customers were seeking contemporary luxury designs, a very different proposition from log cabins traditionally sold in this sector.

Stacy Hall, Director of Communications & Tourism at One North East said: “Tourism is a major part of the region’s economy worth nearly £4bn and employing more than 60,000 people.

In the last five years there has been a 30% increase in tourism revenue and the number of overnight visitors has risen by 12% since 2003 from eight to nine million.”

“One North East’s continued investment in tourism is particularly important in the year ahead when it is predicted even more people will be opting for a holiday in the UK, given the current economic climate and the exchange rates.”

EOS along with expert partners, has established a new company specifically to exploit the opportunity.

The new business, Modu, creates contemporary high specification retreats, specified by reputable designers, built in a factory and assembled on site to very high standards. The enterprise has already attracted investment and is taking early orders.

As well as providing a new channel for its products, EOS has demonstrated the value of strategic marketing and research in defining the way forward. Sometimes it can be hard to change direction, but in these times it’s vital to identify a product or service mix that will see your business emerge from this difficult period strengthened.

“We looked around us...our national markets and competition. We felt it was better to create new market space and move up the value chain, rather than simply consolidate and wait for market conditions to worsen.”

“Our luxury second homes are specified to a very high standard and are offered in grand locations of great natural

beauty. They provide a business retreat, a contemporary family escape from the city and a sound tax efficient investment for both buyers and land estate owners .”

Michael O’Connell Chairman of EOS If you look around yourself there are likely to be new opportunities, especially for those well-positioned, with strong decisive management, vision and access to some capital.

Sometimes it can be challenging to see which business is worth fighting to stay in; and what to drop. At think M. we are firm advocates of positive action and support our clients in looking at their businesses, their markets, and focussing on growth.

“We are here to help forward thinking business who decide to consider opportunities raised by the changing market conditions. Many of our clients are taking the time to reconsider their business mix and marketing strategy now. We help in gathering intelligence and investigating new opportunities, helping our clients to better meet customers’ needs , diversify into new markets or create new products. As a result our own business, and our consulting team continues to grow significantly.”

Graeme Jordan, Research Manager at think M. There is plenty of financial assistance available for those seeking professional strategic marketing support in the North at present. If you would like to discuss your business, and how we can help, please feel free to contact us on 0191 211 1957.

Article by Joanna Curry, Senior marketing executive, think M. think M. is a specialist strategic marketing and research agency based in the North East. The company has a growing team of marketing, research and intelligence specialists who support strategic marketing planning, channel development and the introduction of new products and services. Clients range from multinationals to regional enterprise.

If you would like to find out more, or to discuss how we can help, please call think M. on 0845 838 7372.

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38 TAIT WALKER

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At Tait Walker Corporate Recovery, we have seen a marked upturn in the number of businesses with cash flow and solvency issues, straddling various sectors

IS IT ALL DOOM AND GLOOM? It cannot be said that this recession will have crept up on us or caught anybody by surprise, with the widespread coverage of the US subprime lending issues during 2007, and the impact on the UK with the Northern Rock issues later the same year.

Whilst the government has subsequently tried to help the economy with bank guarantees to increase market liquidity, and interest rate and VAT cuts to free up cash in the public’s purse, they have not yet provided the stimulus the economy needs.

At Tait Walker Corporate Recovery, we have seen a marked upturn in the number of businesses with cash flow and solvency issues, straddling various sectors. I do not consider that we have seen the full effect of the downturn and things will undoubtedly get worse before they get better. History backs up this view - every recession since 1919 has lasted 2 years on average.

As each and every business and its requirements are different, generic strategies do not fit all - although there are a few key areas which should be at the forefront of business thinking: 1. Don’t panic - plan decisions n Be realistic - review your business plan and forecasts for the current market. n Challenge your own assumptions - if the press are suggesting that your sector is falling by X%, what is the impact on your numbers (or why is your business immune to a sector downturn). n Are your competitors doing things differently to you, if so why? Make sure that you are right!

2. Cash management n “Cash is King”- it’s an old adage, but few businesses fail because they have too much cash! n The overall management should be undertaken by a person who is experienced enough to identify pressure points in advance rather than just input figures into a spreadsheet. n Review the cash flow forecasts regularly, and make sure cash is an agenda item at any board meeting.

3. Customers n Credit control policies should be updated, including a review of credit limits and procedures in case credit terms are broken. n Review the terms of business you have with your customers and issue new terms if possible i.e. do you have a robust Reservation of Title clause to recover assets if the customer fails? n Speak to customers regularly - this can take some of the guessing away in terms of orders or financial position.

4. Know your business n Change your management information to fit with the change in the economic climate e.g. debtor days, stock turn, cash items etc. n Review all costs and cut all non essential expenditure. It is easier to reintroduce the expenditure into the business later, rather than have constant small cuts, as these can often undermine morale or confidence with staff and stakeholders. n Make sure you have a thorough understanding of your funding lines, covenants and renewal dates and keep in contact with your funders.Your relationship with them will be crucial if you foresee a cash squeeze and need a temporary increase in your facilities.

Certain of these areas are expanded upon under “Spotlight on The Credit Crunch” on our website www.taitwalker.co.uk/common/news/10_xhtml.html Your ultimate business goal may well be survival, and I cannot stress enough that the chances of this can be significantly increased by taking early advice. We look at numerous businesses which are at various stages of the decline curve and can often prevent these “stressed” companies from becoming “distressed” through various techniques and strategies.

Although times will be difficult, there will undoubtedly be some great opportunities if your business is positioned to acquire faltering competitors, grow as your competitors struggle, or indeed expand into vertical markets.

Finally, we do offer free initial discussions so please don’t hesitate to contact me if you have any questions or need any advice.

Allan Kelly, Corporate Recovery Partner Tait Walker Chartered Accountants allan.kelly@taitwalker.co.uk Mobile: 07921 921 400

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BE PREPARED TO BEAT THE RECESSION - WEIR YOUR INSURANCE SPECIALISTS Running a business can seem to be difficult at the best of times, however in the current environment, the challenges affecting businesses seem to increase and change on a daily basis. It is more important than ever to plan thoroughly and to take measures to improve your business – and these need not be expensive.

The higher cost of fuel during the autumn of 2008 has had a significant effect on businesses in all sectors. Obviously this has been felt most acutely by hauliers and other businesses with a large number of vehicles. There are some measures that can be taken that may mitigate the costs to the business, for example, we have negotiated a support package with a major motor fleet insurer which not only promotes safer driving but firms find the results to be more favourable economically as well.

Recent news reports have included stories of business closures and job losses as the economy slows into a recession. This can have some unexpected and unwanted implications for businesses, for example, history has shown that the number of claims for wrongful dismissal increases during such periods – the legal support and advice provided with our “professional” covers (Professional Indemnity, Legal Expenses, Directors and Officers) can be invaluable in reducing that impact, or avoiding a problem altogether.

premium charged by Insurers. We arrange site visits and offer risk improvement advice for our business clients.

Earlier this year we saw many homes and businesses in Morpeth, devastated by the effects of flood waters, some months later the effects are still being felt. A vivid illustration to us all that the “unthinkable disaster” can happen.

Otherwise healthy businesses are liable to failure following a major disaster as their procedures are interrupted, opportunities are missed and the cash flow is affected. They may also attract poor publicity leading to poor customer confidence.

A recent Department of Trade and Industry survey suggests that 70% of small businesses would go out of business within a year if they experienced a major incident.

Obviously, insurance plays a part, in taking measures to minimise risks and to provide practical and financial support, but the business can still suffer problems in their trading, a situation which competitors are likely to take advantage . The chances of your business surviving such a disaster are considerably increased with some professional advice and by following some simple procedures in the form of a Business Continuity Plan.

For further information please contact Duncan Weir on 01670 36 55 33 or visit www.weirinsurance.co.uk

Taking measures to reduce the risk of a claim not only provides a safer environment but it also may have a significant effect in reducing the level of

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40 FEATURE

Revolutionising the lighting industry Eighteen months ago, Dr Geoff Williams and his team embarked on a major project to revolutionise the lighting industry. Mike Parker discovers that halfway through the three-year investigation, things are hotting up

Thorn, based in Spennymoor, County Durham, is the UK’s largest lighting manufacturer and Dr Williams has teamed up with photonics research experts from Durham University and Sumation, a subsidiary of the Japanese company Sumotomo.

THE scientific world is littered with the debris of great races to plant the first flag in a particular technological revolution. For every VHS, there is a Betamax. The successors have lived on in our daily lives, the losers become but a distant memory.

The competition, led by Philips, is a 20-strong collaborative group working on the OLLA (Organic LED technology for Lighting Applications) project.

In the lighting industry, just such a technological battle is shaping up that will have a profound impact on the way we illuminate our lives. Two giants of the market, Philips and Zumtobel, are battling head-tohead to produce next generation light sources – and they are using very different methods to meet that end goal.

Dr Geoff Williams of Thorn Lighting, a subsidiary of Zumtobel, is the creator and leader of Project Topless (Thin Organic Polymeric Light Emitting Semiconductor Surfaces) which is producing a single polymeric material that will emit white light.

In layman’s terms, it is an ultra-thin sheet of plastic topped with a conductive layer that is 1/2000th the width of a human hair which, when electricity is passed through it, is capable of producing light similar to sunlight.

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Where Topless aims to produce a single layer solution, OLLA is more complicated and uses small molecules in multi-layer structures. The former uses relatively simple printing technology, whilst the Philips version requires molecules be deposited under high vacuum.

Topless started behind OLLA but has since eclipsed it in performance terms. The proof is in the quality of the light produced with the Philips venture struggling to achieve white light.

Dr Williams says: “Topless is performing extremely well. We didn’t have a single white light-emitting polymer when we started and over the last 18 months we have developed a high-quality single light-emitting polymer with an output efficiency of 15-16 lumens/watt and that is without out-coupling (optimising the efficient extraction of light from the device).

“Our materials are eminently exploitable and can compete on a like-for-like basis with any other product at this time. Nothing in the OLLA project has given us cause for concern.”

As with all emerging technologies, the ability to turn exciting laboratory developments in to commercially-viable products is the key. It has to be reliable, scalable and produced at a price consumers are prepared to pay.

Topless is now at the stage where it is ready to start stepping out of the lab and into the manufacturing plant, but this may take a little while to happen.

Dr Williams explains: “Unfortunately, we do not yet have the capability to do small volume manufacturing production at this time. But, this will soon change – watch this space!

“It really is an exciting time in this technology platform and it is equally exciting for County Durham. There is nothing like this in the northern hemisphere and you would be hard pushed to see it in the Far East either. It is a unique technology business opportunity.”

Efforts to begin small-scale manufacturing have been greatly helped by the completion of the Printable Electronics Technology Centre (PETEC) at the

THORN LIGHTING 41

North East Technology Park (NETPark).

The £10m facility is one of only four centres worldwide with the capability to provide prototype manufacturing for printable electronics. It is also a significant reason for Zumtobel investing in the Thorn and Topless in County Durham, having previously considered moving operations to Eastern Europe.

In addition to plans to begin small-scale manufacturing, Dr Williams’s team is also looking at alternative metals that it can use to replace indium tin oxide, a transparent conductive coating used in displays and other applications that is becoming an increasingly scarce resource. Project Topless is working with glass manufacturer Pilkington to discover alternative metals that will give enhanced performance.

For a man that is North East born and bred, the technological innovation that is occurring 30 miles from the place where Joseph Swan first demonstrated his electric lightbulb is deeply satisfying for Dr Williams.

He says: “We are bringing a high-tech manufacturing base into a region which has a strong heritage in this area. We are basically turning the wheel. Instead of manufacturing

going offshore to low wage countries there is an opportunity to set up successful new manufacturing technologies here in the UK.” Despite Project Topless being only halfway through its three-year lifespan, Dr Williams is already having to consider the next phase and where to secure funding. Fifty per cent of the funding for the current progamme was secured under the Department of Trade and Industry (DTI) Technology Programme which invests directly in new and emerging technologies and has been designed to help businesses work collaboratively with academic partners. He is hopeful that the board can be persuaded to invest further in taking the technology the extra step necessary to make it truly commercially viable.

Dr Williams is also working closely with the likes of the County Durham Development Company (CDDC) – which manages NETPark on behalf of Durham County Council - and CPI. There is a strong argument for such investment.

The environment has become a main staple of the political agenda rather than the fringe issue it once was. Artificial lighting accounts for between 20-25% of all electricity consumption

and the work Topless is conduction has the ability to reduce that consumption by tenfold – dropping the amount of energy consumed by lighting to a mere 2% working off a simple DC battery.

Furthermore, it is incredibly long-lasting and a single kilogram of active material is capable of coating ten thousand square metres of device, 2 football pitches.

The overall environmental impact of this is clear. Not only will it reduce energy consumption, it will also reduce waste, cut packaging and shrink the carbon footprint of companies All told, the technological advances being made in County Durham are setting pulses racing for experts in the field. The added frisson of competition only heightens that excitement.

It is too early yet to tell which technology will be the winner - or, for that matter, if only one will win out. However, It is far to say that Project Topless is in incredible shape and, with the regional support and world-leading developments such as PETEC, it is on course to transform the way we light our lives in the future.

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44 CPI

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Many firms are already benefiting from R&D grant schemes established by government bodies for industry

RESEARCH AND DEVELOPMENT (R&D) GRANTS, CONSORTIUM BUILDING AND TECHNOLOGY PARTNERING SERVICES In today’s harsh economic climate, for companies to survive they must reduce operating costs and still boost creativity and innovation. Managers today have to be able to handle uncertainty – to do more with less.

Advances in technologies enable companies and economies to grow, by development of new competitive supply chains, products and services. However, innovation requires upfront investment and carries with it risk.

With the economy in recession, finding money for research and new product development inevitably becomes difficult.Yet not to innovate may not be a choice.

As a result businesses must further mitigate innovation risks by better targeting investment, leveraging additional finance and partnering to access new expertise, know-how, capabilities, intellectual property and equipment. At the Enterprise Europe Network for North East England we successfully help our clients to do just this.

Access grants to finance your R&D Today many firms face cash flow difficulties and problems obtaining money from banks and private investors for their day-to-day operations let alone for R&D. Nevertheless, successful companies will find and unlock the funds required for their research and new product development projects.

Many firms are already benefiting from R&D grant schemes established by government bodies for industry. Grant schemes aim to stimulate market-led innovation enabling companies to overcome technological barriers, create intellectual property, build new partnerships, investigate market needs, develop prototypes and formulate commercialisation strategies.

With a budget of over £40 billion, one of the world’s largest and most generous R&D grant scheme is Europe’s Framework Programme Seven (FP7). For collaborative R&D projects, small businesses can obtain 75% of their project budget through FP7, whilst large companies can obtain 50%. For a small business this means for a £500K project FP7 will provide £375K in grant. In other words, a £125K investment becomes £500K! Grant finance sources do not impose equity or repayment demands. They simply supplement and extend a company’s own investment and contribution to a specific R&D project, reducing risk. The Enterprise Europe Network helps regional companies to identify and apply for R&D grants and innovation related equity/loan schemes including: n One NorthEast Grant for R&D for small companies n One NorthEast Industrial R&D award for large companies n NE Finance, Proof of Concept and Three Pillars equity/loans

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n n n n n n

Framework Programme Seven Eco-Innovation EuroStars Technology Strategy Board Collaborative R&D Carbon Trust Energy Technology Institute

Shak Gohir, Practice Director at the Enterprise Europe Network for North East England commented “We have established a strong and experienced team to help clients prepare R&D grant applications that articulates a compelling proposition.

Our people not only understand the application process but are also specialists in technology development and commercialisation. This has enabled us to provide a very high quality of service to our clients.”

Find new technology partners to reduce your R&D cost The basic development of any new technology is a costly and risky venture. It can impede speed-to-market, create uncertainty and can demand large sums of investments for establishing the new knowledge, capabilities and research facilities – all this even before the technology itself is developed and demonstrated.

A strategy that many successful business leaders opt for is to find new partners who can offer them the required new technologies through license agreements or even to build a consortium opening up access to state-of-the-art facilities, expertise, intellectual property and know-how. Such an approach expands innovation capacity and accelerates time-to-market. Furthermore it reduces costs and enables project teams to focus more of their effort on aligning product features and performance with identified market needs.

Gillian Kears, Business Innovation Manager at Enterprise Europe Network for North East England said “As part of a Network of over 600 teams across Europe and beyond, we work closely with organisations to connect seekers and providers of new technologies. The Network members maintain a single global database comprising specific technology requests and offers. This, along with our direct network of contacts, has enabled us to work successfully with our clients to find new technology and R&D partners.” n We hold monthly R&D Clinics where you can meet us to discuss your R&D financing and technology needs n Our website, www.een-northeast.co.uk, provides online access to current technology offers and requests. n To book an appointment, contact gillian.kears@uk-cpi.com