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Vol 7 Issue 2 2017

Adolygiad Busnes De Cymru

Open For Business Welsh Exporters Leading the Way 8 Emerging Markets for Welsh Exports Peter Polydor on Swansea’s Bright Future Sector Amaeth Cymru Bygythiadau a Chyfleoedd

Swansea Business School Ysgol Fusnes Abertawe


inside | SOUTH WALES BUSINESS REVIEW

3 Editorial:

OPEN FOR BUSINESS

4 The Big Interview: PETER POLYDOR

8 Future Wales:

A NEW VISION FOR SWANSEA’S WATERFRONT

10 Opinion:

A PLACE WHERE PEOPLE WANT TO BE

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Spring 2017 Volume 7 Issue 2

15 Advice:

GETTING STARTED WITH EXPORTING

16 Sector Amaeth Cymru: BYGYTHIADAU A CHYFLEOEDD

20 In Conversation

BJARTE BOGSNES ON BEYOND BUDGETING

22 News and Events 24 Next Issue:

PRODUCTION TEAM Editor: Lucy Griffiths Editorial Board: Manjit Biant Siân Harris Jamie Tavender Christopher Thomas Jayne Woodman

Editorial: Open for Business

Design & Print: UWTSD TEL

FORWARD THINKING

18 Think-Piece:

Lucy Griffiths

STEERING WELSH BUSINESS THROUGH TIMES OF CHANGE

Editor

11 Industry View:

In these uncertain times when some nations are questioning how open they want to be to the rest of the world in terms of trade and the movement of people, this issue of the South Wales Business Review is focused on how Wales interacts with the global economy.

8 EMERGING MARKETS FOR WELSH EXPORTERS

We hear about the opportunities Wales has to become a magnet for start-up companies from entrepreneur and investor Peter Polydor, we find out more about some of the projects, like Swansea’s SA1 development, that are helping make this happen, and we explore some of the emerging export markets Welsh companies could be targeting. Add to this features on how Wales’s agriculture industry can respond to Brexit, an interview with Beyond Budgeting expert Bjarte Bogsnes on challenging century-old management thinking, and much more, and we have another packed issue for you. Our next issue will focus on preparing for a sustainable future in Wales - please email us at swbr@uwtsd.ac.uk if you are interested in contributing. Alternative formats If you require this document in an alternative format (e.g. Welsh, large print or text file for use with a text reader), please email swbr@uwtsd.ac.uk Fformatau eraill Os hoffech y ddogfen hon mewn fformat arall (e.e. Cymraeg, print mawr neu ffeil tesun i’w ddefnyddio gyda darllenydd tesun), anfonwch e-bost i: swbr@uwtsd.ac.uk

ISSN 2049-5544 Disclaimer: The articles in this publication represent the views of the authors, not those of the University. The University does not accept responsibility for the contents of articles by individual authors. Please contact the editor if you have further queries. Ymwadiad: Mae’r erthyglau yn y cyhoeddiad hwn yn cynrychioli barn yr awduron, nid rhai UWTSD. Nid yw’r Brifysgol yn derbyn cyfrifoldeb am gynnwys erthyglau awduron unigol. Cysylltwch â’r golygydd os oes gennych gwestiynau pellach. Registered Charity Number / Rhif Elusen Gofrestredig 1149535 © UWTSD 2017. All rights reserved/ cedwir pob hawl. Cover image: ©DabartiCGI/shutterstock This Page: ©robuart/shutterstock

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CONTACT US / CYSYLLTWCH Â NI

Best wishes Lucy

Web/Gwefan: www.uwtsd.ac.uk/swbr Email/E-bost: swbr@uwtsd.ac.uk Twitter: @SWBusReview Post: Lucy Griffiths

South Wales Business Review Adolygiad Busnes De Cymru Swansea Business Campus Campws Busnes Abertawe University of Wales Trinity Saint David Prifysgol Cymru Y Drindod Dewi Sant High Street / Stryd Fawr Swansea / Abertawe SA1 1NE

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The Big Interview: Peter Polydor SWBR Editor Lucy Griffiths met up with entrepreneur, investor and UWTSD Professor of Practice Peter Polydor to find out what he thinks Wales can do to become a hub for start-ups. SWBR: Tell us a bit about your background and career history? PP: I got involved in entrepreneurship at a very, very young age. I started my first company when I was a teenager, and from there always had something going on. That’s the life of a serial entrepreneur, you’re constantly building something else new. From there I went to school in the States, in LA, Occidental College, and from there went on to work for a venture capital firm in California. I was there for about four years and then I left that firm to start my own. So, Ergo Capital is a venture fund that I put together back in 2013. We invest in a number of different industries - IT, E-commerce, we’ve done FinTech, we’ve done CleanTech we’ve done medical and bioinformatics, so pretty broad, and we’re headquartered in California. Also at the same time in 2013 I launched the Eureka Building, which is a three-acre tech campus in Southern California targeted towards entrepreneurs and creatives. The entire place is designed with 41,000 square feet of cool space that only houses tech and creative companies, ranging from the start-ups of one or two people, all the way up to subsidiaries of billion dollar companies. We’ve hosted, since launching, over 300 events I believe, so it’s a very busy community there. At Eureka we also produce our own events, including

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EurekaFEST, which is Orange County’s biggest start-up festival, targeted towards building the community, building that entrepreneurial spirit, and in a way just supporting entrepreneurs and making it a better ecosystem.

SWBR: What would a typical week for you look like? PP: Ha, a typical week when I’m in London? When I’m in Toronto? When I’m in New York? California?

SWBR: Is there such a thing as a typical week? PP: That’s the beautiful thing about working with start-ups and venture, there is no such thing as a typical week! The only thing that’s typical is that you’re always dealing with a range of problems within companies. You’re always dealing with the challenges facing start-ups that are always under-staffed, underresourced, they’re under pressure, just under, under, under, under! So, that’s the one thing that doesn’t really change.

We’re also launching our own accelerator too. Ergo itself is more of a growth stage funder now, so we’re creating a startup accelerator to really focus on those early stage start-ups that are at that seed stage. We’re structuring it in a way that’s not going to be like your typical accelerator, you know, join a cohort, be there for three months and then get out. Instead it’s going to be picking up ten companies a year to work with for up to a year, and really just help them hit milestones. That’s going to be called Ergo Accel.

SWBR: It’s sounds as though you’re quite hands-on with the companies you invest in? PP: Yes, we’re not passive investors. Well we can be, don’t get me wrong, we’ve had companies who we’ve helped get to a milestone, and we don’t want to be a weight, a hindrance, anything like that. We just want to help them get to where they’re going as fast as possible. So, we get out of their way as much as we try to help them on their way.

"That’s the life of a serial entrepreneur, you’re constantly building something else new."

But, typically if I’m not talking to one of our companies, every day, then that’s a very odd day. And, when you look at our portfolio, we have companies that are in different places; there are companies in California, there are companies in Arizona, there are companies in New Jersey, we’ve got companies in Europe, so the time-zone change also makes it very interesting because I feel like just when I’m solving one problem somebody else is calling me because they’re just waking up! Which is interesting, and it’s also the reason why I do what I do, I just love being that problem solver and helping companies progress and grow.

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PP: I coined this term that I like to use, whenever I’m examining a company I like to find the ‘MEAT’. MEAT stands for the Market, Executives, Acceptance and Technology. So, is it a big market, a controlled market, is it an easy one to get into? If it’s a huge market, fifty billion dollars, a hundred billion dollars, is it one that has high barriers to entry? If it doesn’t, anyone can get in and therefore you can be displaced at any time, and if it’s a small market, a niche market, that’s five hundred million dollars, or even a hundred million dollars, great, well can you own it? Because if you can’t own the whole market or a least a huge chunk of it then there’s no real value in going after it because what’s the point of being five percent of a hundred million dollar market? You’re a five million dollar company. The next one is Executives, which to me is the biggest thing. Who are the people who are actually running this company? Who are the people who are going to be having those sleepless nights because they’re really worried about how you’re going to get to the next stage. They’re the people who, day-in day-out, are developing this. Acceptance refers to customers – in other words, the product that you’re making, whatever problem you’re solving, has someone already said that yes, there is a problem and I want to use your product as my solution. Having a customer is the single best tool you can have in terms of due diligence. And the last one’s technology, is this something that is actually a leap forward, meaning are you improving what’s out there by 10%, well that’s not really of value, or are you improving it tenfold? Then the next step behind that is, is it protectable? Do you have any intellectual property behind it?

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So, those are the four things, but for me, after all the deals we’ve done, after all the companies I’ve seen, the executives, those people that are running the company, they’re the most important.

SWBR: Are there specific things places like Swansea need to do to foster that entrepreneurial spirit, either from within, or to attract it in from elsewhere?

SWBR: You’ve visited Wales a few times I believe, and Swansea in particular, what was your impression of Swansea as a City and as an environment for business?

PP: Whenever a company is trying to decide where they’re going to build, where they’re going to grow, whether you’re a big company or a small company, talent is a huge thing, so the University being focused on providing educational opportunities for our students to be better prepared is very important. That is, being upskilled, being ready for this world of technology, AI, automation, that has really shifted the opportunities. I think that’s a key point – having the right talent and having access to it.

PP: I was surprised, because it reminded me a lot of California. The way it looked and felt. Although, I’ve only ever seen it rain once there, so it might be a slightly skewed vision! I was really impressed when I saw the SA1 development and listened to the people from UWTSD talking about what they’re trying to do, it just showed that there’s a big commitment and a drive to try and make Swansea and South Wales a real innovation cluster, a real innovation hub, which when you look at the European landscape, there’s no clear winner. In the States you know it’s Silicon Valley, and I can go to Canada and tell you it’s the Toronto/Waterloo Corridor. However in Europe, if, for instance, I’m looking for hardware technology, if I’m looking for education technology, insurance technology I don’t know where I would go to find that necessarily.

SWBR: You’ve taken on a new role as Professor Practice at UWTSD, how do you see that developing? PP: For the SA1 project, I’m part of the working group to help and advise on it, with my experience from Eureka, developing the start-up community in Orange County, and prior to that all the different start-up communities I’ve been to in the world, ranging from Munich to Halifax, Toronto to Vancouver. Seeing how other communities in this ‘rise of the rest’ as it’s been called, are really taking over.

Outside of that, just being in an environment that is supportive of start-ups. Having different Government programmes, having different resources, both physical and in the sense of policy, all those things come together and what happens is, if you can get one success that doesn’t leave, you build on that. If you look at why Waterloo in Canada is one of the biggest tech clusters in the world, and why the third most prevalent engineering degree in Silicon Valley is the University of Waterloo, it is because of a company call Blackberry. Blackberry started there, built there, and is still there. They may not be the tech giant that they once were, but they’re still a huge company. Out of that spun so many different technologies, because they became a magnet. So, as a magnet they not only kept talent there, they developed with the University to make the talent even better, but they also brought talent there, and then people were spinning out and starting all these other companies that are now a huge innovation cluster where there are at least three or four start-ups that I can think of that are over $1billion in value – they all started from Waterloo and still have their headquarters there.

SWBR: So you need one high growth company and the rest will follow?

of innovation at work. And it’s one of the benefits that the infrastructure isn’t already there.

SWBR: If you were starting out again now as a young entrepreneur, what would you do?

PP: Yes, but the reason why Blackberry stayed was they had a direct plugin to great talent. They had the University producing the great engineers that they needed to grow. So, all of a sudden, one of their biggest challenges of finding people, was solved, so all they had to do was keep getting a bigger office, keep focusing on revenues, keep focusing on the future, and they knew that the people would come.

So now they’re going in, they’re creating infrastructure with the newest and best uses, so you’re not trying to look at it from the perspective of asking how do we take this old space and change it to be this, it’s building new spaces.

PP: For anyone who’s interested in going down the route of starting their own company, owning their own company, they may not have that idea yet, or they may have the idea, but they need to test a lot about it, the only thing that I’d want to do is either go work for a big company like a Google or a Microsoft, (and I keep throwing in Microsoft, because everyone says ‘go work for Facebook’, but Microsoft is going through a renaissance right now that’s very exciting, so I throw them in the mix too).

SWBR: I’ve heard people say that part of it is having a place that’s actually a pleasant place to live in, because that’s what attracts the talent in and keeps it there? Do you subscribe to that? PP: California is a beautiful place to live, and we pay for that, meaning that we joke that California is the weather tax, because California has the highest taxes, I believe, in the United States. So it’s not necessarily conducive to business, for it to actually be in California. But you’re right, if you are a top programmer, or a top engineer or a top business development person, and almost any company would want to hire you, you have choices, of where you want to live. You can go work for Google in London, you can go work for Google in Dublin, you can go work for Google in New York, you can go work for Google in all these different cities...actually one of my classmates from Oxford is going to work for Amazon in Swansea. It’s a matter of lifestyle, in other words making it cool, and enjoyable, making it a place that people actually want to travel to. I’ve been to Swansea and it’s one of those hidden gems that people just don’t know about. The plans that the City has, the plans that Welsh Government has, the plans that UWTSD has for Swansea - it’s going to go through this major gentrification, this major uplift, everything from a sports arena, to the huge Tidal Lagoon Project, that’s being pushed forward, it’s going to be just a perfect example

I sat with the Leader of the Council and he walked us through the plan they were working on and the funding they were bringing in and it’s great planning and great programming, because they’re not just focused on wanting to make this a great place to live, they’re also focused on making it affordable and making sure they have enough homes. Because another strategic advantage of why you’d want to have a company based in Swansea is the cost of living is lower, which means the salaries are lower, which means the efficiency of your people in terms of the amount of revenue you get out of them per pound you pay them is great. Take London, start-ups don’t come to London because it’s going to be an efficient use of capital, they come because people want to live here, because it’s where the talent is. So, if you make an alternative place that’s got that, what’s going to happen is you’re going to attract the bigger companies, so all of a sudden, Google is going to have an office in Swansea, all of a sudden Microsoft is going to have development teams there.

I say go work for them and make sure you’re part of a team where you can learn. In other words, don’t be just a salesperson or a software salesperson, go in there and get into projects that are of interest to you, or get in there and make sure you have the ability to find projects that you can jump on the teams for, because you’re going to get incredible experience and knowledge and also networks that will help you once you launch that company. The other thing that I would do, if I had that idea, and I had an idea of how to actually implement it, I would go and start it. But I would only go and start it if I had a clear path to surrounding myself with the right people. I created Eureka because it was something I wished I’d had when I was an entrepreneur. This is the thing about entrepreneurs – they’re ever the optimists, right? Because they’re about to take a leap. I’ve heard it described as an entrepreneur is someone who has all the parts for building a plane, jumps off a cliff and has to build a plane as they’re falling down and take off before they hit the ground. The reason why you want to have accelerators and what people refer to as smart money (which I don’t really like because we’re not smarter), but people who have done it before, experienced capital we’ll call it, is that at least it improves your chances of success, and that’s what you want.  

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Image: ©Leighton Collins/shutterstock

SWBR: Is there something in particular that you look for in companies that you invest in?

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Future Wales: A New Vision for Swansea’s Waterfront The University of Wales Trinity Saint David (UWTSD) is embarking on a highly ambitious project to develop a new neighbourhood for business and the community at the heart of Swansea’s waterfront. The University’s vision for the Swansea SA1 Waterfront Development is to create a new city district where community, business and enterprise will work in close proximity to stimulate economic development in the region and across Wales and beyond. At the same time UWTSD wants to increase the employability of its students with measures such as introducing entrepreneurship modules to all courses, increasing students’ exposure to commercial applications and involvement in live business situations. The development site was purchased by UWTSD to create a modern, new waterfront campus situated within a neighbourhood connecting academia with innovation, enterprise, business and the community. With a focus on innovation, both academic and commercial, the University is seeking to create mutually beneficial partnerships with businesses locating in SA1 Swansea Waterfront; colocation and commercial partnerships are seen as a key to attracting and growing

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innovative fast growth business, which in turn will create demand for space and high levels of occupancy and employment. Occupying 23 acres on the Waterfront of Swansea City Centre, SA1 Swansea Waterfront provides an exceptional opportunity for existing and new businesses to locate to Swansea’s most prestigious business address. Within an established environment of 202,500 square metres of built and occupied space, SA1 Swansea Waterfront has the capacity to develop a further 15 acres with the potential to provide up to 135,000 square metres of new buildings. The master-planned scheme has planning approval, with the first phase starting on site last October to deliver a new home for University of Wales Trinity Saint David. SA1 Swansea Waterfront is a gateway site to the city and is already home to a series of high profile occupiers. SA1 also boasts some of Swansea’s most popular bars, restaurants and cafes, creating a cosmopolitan Waterfront environment. At the heart of SA1 Swansea Waterfront will be UWTSD’s new Waterfront Campus, a purpose built home for over 3,000 students. The new campus will house a

number of the University’s key faculties including: Computing, Architecture and Engineering; Business and Management; and Education and Communities. The University is seeking to create a culturally magnetic, technologically advanced, education platform as the core component of its offer, working with students, entrepreneurs and businesses to help them develop their ideas and meet their workforce needs of the future whilst linking to their corporate and social responsibilities. With its focus on employability and delivering employmentready graduates, the University will afford businesses a wide range of practical benefits, from applied research and joint venture product development to tailored curricula and the delivery of mandatory and bespoke commercial training programmes. A key objective of the University will be to create business support networks and dedicated Centres of Excellence committed to securing inward investment opportunities through knowledge transfer partnerships with the private sector and the development of new joint commercial ventures with targeted growth opportunities. In the first of a range of planned joint initiatives with business and

Artist's impression of the first stages of the development.

industry, the campus will play host to the Construction Industry Training Board’s (CITB) Construction Wales Innovation Centre (CWIC). Central to the creation of an innovation culture will be the Box Village Innovation Hub currently being planned by the University. The proposal is that Box Village is positioned as the Swansea Waterfront Creative Industries Hub; it will be constructed from refitted shipping containers to create unique, low cost and low risk workspace and a focal point for embryonic start-ups and spin-off business. With an emphasis on co-working and common spaces and providing business support services, mentoring and access to IP, legal and expert consultancy, the Box Village Innovation Hub will be a focal point for innovation and access point for seed investors.

The Creative Industries Hub will also connect with the existing wide range of academic programmes across the University including Voice, Performance, Sound Technology, Applied Computing, Business & Entrepreneurship, Tourism and Events Management. The Hub will also connect to other university partnerships and existing relationships including Canolfan S4C Yr Egin, Swansea Sound/ The Wave, BBC Wales and Tile Yard as well as independent creative industries related commercial and social enterprises and sole traders. From embryonic to more mature startup, the University’s existing incubator buildings, Technium 1 and Technium 2, will provide space for expansion with a view to full-scale commercialisation. The University would like to see a mixed-use

development around this academic and business core, embracing other business occupiers, residential, retail and leisure. SA1 Swansea Waterfront has serviced plots available with outline planning consents for a range of building sizes and UWTSD is able to offer a range of bespoke property development solutions to meet individual business requirements for those looking to locate to SA1. The University can manage the complete development process on behalf of potential occupiers, their in-house team has recent and current experience of leading and managing multi-disciplined design, procurement and construction teams in the development of its academic facilities on SA1.

To find out more visit: uwtsd.ac.uk/sa1

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Opinion: A Place Where People Want to Be

Industry View: 8 Emerging Markets for Welsh Exporters

Helen Bowden

Aydon Consultants, experts in international trade, give us their view on the top eight emerging overseas markets Welsh companies should be aware of.

CEO of Swansea Bay Futures Helen Bowden reflects on what attracts people to want to live, work and play in a particular place, and how Swansea’s community is joining together to create a vibrant city where people want to be.

“If you build a place people want to visit, you build a place where people want to live. If you build a place where people want to live, you’ll build a place where people want to work. If you build a place where people want to work, you’ll build a place where business has to be. And if you build a place where business has to be, you’ll build a place where people have to visit.”

got something for everyone. Walks, riding, swimming, surfing, boating, yachting, wildlife, countryside, farming, village life, city life, seaside life, marina life, Swansea literally has it all.

The future for growth and development is massive. We have an area of outstanding beauty; we have a huge array of places to visit and enjoy, we have a city that is continuing to grow and develop and that has a vision of where it wants to be.

And for business, from big business to small, manufacturing to technology, family run to international, serial entrepreneurs to the business organisations like Swansea Bay Futures and Swansea Business Club (not to mention the support to business offered by our educational establishments) Swansea has everything you think it would need to win. And as our city develops and grows so then will the Swansea Bay region, so here’s to a bright future for Swansea as a place where people want to visit, live, work and base their businesses.

Here at Swansea Bay Futures we believe that this region is a great place to live, learn, work, raise a family, enjoy leisure time and ultimately retire. One of the great things about the region is the historical generational ties and the tremendous love for the region that people develop when they come here to study for example. Add to this the incredible landscapes, offering breath-taking vistas and some of the best beaches in the UK and you’ve

Recent research by the Institute of Chartered Accountants in England and Wales showed that 53% of UK businesses exported exactly the same proportion of their output in 2016 as they did in 2014. 96 % of non-exporters had no plans to start in the coming year. With the uncertainties surrounding Brexit and the new leadership in the USA carrying additional uncertainties it is our view that targets for expansion should be directed at export, in particular to new markets which are often difficult to enter but with perseverance, and good guidance, can be extremely lucrative. The Welsh Government are planning a number of measures to increase the number of Welsh companies exporting and increasing the capability of existing

exporters. In a number of these countries the Welsh Government already gives financial and advisory support both on research and market entry through their International Trade Opportunities Programme (ITO) in which Aydon currently participates as a consultant in 60 countries, as well as the International Trade Development (ITD) programme. Turn the page for our insights on some of the countries where we have had considerable success and which could be of interest to Welsh exporters...

"...53% of UK businesses exported exactly the same proportion of their output in 2016 as they did in 2014."

Image: ©IM_photo/Shutterstock

The Swansea Bay region is a place of beauty and business. Over the last fifteen years or so Swansea has grown hugely and is still growing. Swansea’s Universities continue to grow and develop their new

sites and attract more students and with the University of Wales Trinity Saint David’s new site in SA1 growing within the City Centre it is estimated that up to 6,000 more students will descend on the area.

Image: ©Andrei Tudoran/Shutterstock

According to Maura Gast Destination Marketing Association International:

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Mexico

Thailand

Ghana

Myanmar

Vietnam

Indonesia

Mexico boasts a combination of privileged geographic location and a thriving, industrialised economy that is gaining increasing attention from foreign manufacturers. With a population of over 120 million, average annual GDP growth of 3.2% over the past six years and an open economy, Mexico is on its way to eclipsing Brazil as Latin America’s most attractive market for exports and investment. Mexico is among the world’s most trade-friendly countries, with 12 Free Trade Agreements in place covering 42 countries.

Thailand’s economy is well balanced with no one segment dominating. At 46% of GDP, the services sector is the largest economic driver for the country. Industrial activity (that includes manufacturing) compose 42% and agriculture at 12% of GDP. Thailand is an export-oriented country. Exports account for almost 70% of the GDP across all industries. However, as labour costs rise, Thailand’s export competitiveness is being challenged by its peers in ASEAN such as Vietnam and Indonesia.

The Republic of Ghana is located in West Africa and is a member of many international organisations including the Commonwealth of Nations, the Economic Community of West African States, the African Union and the United Nations. Ghana is the second largest producer of coca and a major gold producer.

Vietnam’s economy has experienced one of the fastest growth rates in Asia with an average rate of 6% for the last two years. The growth is supported by export oriented manufacturing and domestic demand. The exports account for more than 80% of GDP. Agriculture, services along with industry have shown healthy growth of 2.4%; 6.3% and 10.6% respectively. Service and industry account for approximately 40% and 33% of GDP.

The country’s wide range of manufacturing and process industries create a large market for specialised machinery, equipment and inputs. Mexico’s agriculture and food processing industries are also thriving. Perhaps gaining the most attention though, is the energy industry, the opportunity for private companies to produce and sell energy is currently driving a major surge in new oil and gas, wind, solar and conventional electricity generation projects that all require equipment. Traditionally, US industrial suppliers had the inside track in Mexico, however in recent years foreign manufacturers have worked hard to establish inroads in this ever expanding market. Now, with the new US administration taking an anti-trade posture and the exchange rate making US products more expensive, European and Asian manufacturers are in a position to take advantage of opportunities opening up in Mexico.

The aviation, food processing, medical, and renewable energy industries could present growth opportunities for trade. The Thai government aims to make Thailand a hub for aircraft Maintenance, Repair and Overhaul (MRO) in the region, as it is located at the center of Southeast Asia and is a popular tourist destination. Main opportunities in this sector would be for aviation parts & equipment, as well as companies that provide ground support equipment and airport constructions/maintenance.

Myanmar’s economy has grown at approximately 8% since 2012, mainly driven by developments and investments in the telecommunication sector (57.5 %), extractive industries (50.5 %), oil and gas (36.1%), construction (15.9%), manufacturing (9.7%) as well as growth in key service industries (e.g. tourism). Myanmar relies heavily on imports. In 2015, Myanmar imported US$21.92bn and exported US$13.11bn mainly from and to China, 52% and 47% respectively. Even though Myanmar’s nascent market is poised for growth and holds a high potential, logistics, infrastructure, inadequate power grid and supply, and lack of skilled labor still remain critical challenges. There are opportunities in Myanmar in IT and Telecoms, Infrastructure, Agriculture, Oil and Gas, and Power generation.

Indonesia’s economy offers resilient growth and abundant opportunities for foreign investors. Among the main drivers of Indonesia’s economy are an abundance and diversity of natural resources, a young and burgeoning population, growing domestic consumption, and solid monetary policy. Strict fiscal regulation and continued domestic consumption growth offer Indonesia a strong buffer for international threats in a volatile global economy, safeguarding future economic growth as the Indonesian economy, the largest in Southeast Asia, continues to evolve.

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The economy of Ghana has over the years made positive progress as a result of policy reforms, which have improved macroeconomic performance and created a business environment conducive to the reduction of the cost of operating a business. Opportunities exist in oil and gas, metal fabrication, agro-food processing and ICT.

Agriculture, Education, Healthcare, IT and manufacturing are sectors with excellent prospects. According to WTO, an increase in disposable income has led to a rise in demand for high quality foods, healthcare system and education services. In addition to the government incentive of agricultural FDI projects, Welsh companies can exploit the opportunities in new genetic plants, animal medicines and agrifood related industry.

Agriculture, mining, oil & gas, and healthcare are among Indonesia’s many rapidly growing industrial sectors. Opportunities exist for foreign suppliers of farming and food processing equipment or farming technology as this expertise is in high demand.

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Advice: Getting Started in Exporting Colombia

With 1.3 billion people and the world’s fourth-largest economy, India’s recent growth and development has been one of the most significant achievements globally. The main sectors contributing to the GDP are Agriculture (53%) Services (25%) and Industry (22%). India with a strong domestic market and a growing middle class are the main drivers for companies to do trade in this emergent market. Increasing consumption and living standards fuel a demand for modern technology, high quality products and services, creating good opportunities in both manufacturing and retail industry. Deloitte and the US Council on Manufacturing Competitiveness currently rate India as the world’s 4th most competitive economy and by 2018 it will be ranked #2 with manufacturing being the propelling force.

Colombia has a strategic location at the northern corner of South America, bordering with Venezuela, Panama, Brazil, Ecuador and Peru.

'India's recent growth and development has been one of the most significant achievements globally.'

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With more than 48 million inhabitants, it’s the 31st largest world economy and the fourth largest economy in Latin America, with a fast-growing middle class. Despite the economic difficulties derived by the recent oil and mining crisis, which has affected its public finances and growth, the country keeps intact its investment grade by the risk agencies. Colombia has promoted an active foreign trade policy, signing free trade agreements with more than 47 countries in the world, granting access for its products to a wider market of 1.5 billion customers. The country is also, since 2013, implementing the roadmap to become a full member of the OECD. There are interesting growing business opportunities in diverse sectors, such as tourism, retail, energy, telecoms, infrastructure, agribusiness, construction, manufacturing, packaging, software development and health.

About Aydon Consultants Established in 1998 by Peter Guinsberg and Helen Lyons and based in Magor, South Wales, Aydon Consultants Ltd (aydon-consultants.com) is the administrative centre for a worldwide network of associative consultancies providing in-market coverage to UK and overseas companies seeking to develop new international business. Working within both the public and private sectors they offer a complete range of services necessary to conduct business across international borders, assisting clients in their cross border business activities utilising country specific expertise which is co-ordinated from the UK central originating office.

Exporting can pay dividends if you invest in sound planning and preparation. Some of the questions you should consider before embarking on your export journey are: • Is my business geared to serve a bigger market? • Which market should I tackle first? • Do I have the resources in place to support my export plans? • Are my products or services ready for my target markets? • Do I have the necessary “know-how” to confidently go into new markets? • How can I find out about shipping, international regulations, taxes and import laws ... as well as all of the other things I need to know? Business Wales will work with you on a one-to-one basis to help you find the answers to all these questions and more. The support is free of charge and specially tailored to meet your specific needs and can cover the following areas: • Developing your export strategy • Selecting the best market for you • Defining your route to market or in- market partner • Financial considerations such as pricing, payments, currency and tax, to name a few • Getting to grips with export procedures, regulations and logistics

To help get you ready there are fully subsidised workshops on a range of topics, including: • Market overviews • Smart exporting • Managing distributors and agents • Understanding Incoterms 2010 ® Rules We can also assist you to access other sources of help such as UK Trade and Investment, the Chambers of Commerce and the Institute of Export. Modern communications make it easier and cheaper than ever to get in touch with contacts all over the world. However, it still holds true that people like to do business with people, and you will find that there’s no substitute for meeting your client face to face. There are a number of grant aided programmes provided by the Welsh Government to assist you in developing your business in overseas markets, Business Wales can advise you on the best programme to suit your business and assist with your application. You could also join one or more of the many trade missions that are run each year. The missions provide opportunities for you to engage in game-changing discussions with potential agents, distributors and even new customers; and the choice of destinations reflect current international developments, to give you the best possible chance of finding new business.

Whatever stage your business is at Business Wales are able to advise and assist you in developing the best strategy to suit your business in order to maximise your potential in the export market. The Business Wales service also supports new and established businesses in Wales. Whether you’re thinking about starting a new business, have already taken the first few steps or want to grow your current business the Business Wales service can help. Business Wales supports the sustainable growth of small and medium size enterprises across Wales by offering access to free information, guidance and business support including: Starting Up a Business, Employment Advice, General Business Management Support, Environment Management Advice, Tendering, International Trade, Business Mentoring, Skills Advisors and Workshops. Business Wales is also able to provide IT support via Superfast Business Wales. The service can be accessed by phone, online and through the four offices based in Bridgend, Carmarthen, Newtown and St Asaph. Businesswales.gov.wales

Image: ©robuart/shutterstock

India

Vol 7 Issue 2 2017 | 15


| SOUTH WALES BUSINESS REVIEW

ADOLYGIAD BUSNES DE CYMRU |

Siân Harris

Mae Siân Harris, Uwch Ddarlithydd a Chydlynydd Rhanbarthol Rheolaeth Busnes y Coleg Cymraeg Cenedlaethol, yn ystyried y dyfodol ansicr sy’n wynebu ffermwyr Cymru yn sgil Brexit. Mae’n anodd gwybod os oedd canlyniadau’r refferendwm yng Nghymru yn adlewyrchu’r farn yn y byd amaeth neu beidio; ond roedd Undeb Amaethwyr Cymru ac NFU Cymru wedi datgan eu bod yn erbyn gadael yr Undeb Ewropeaidd (EU) ac roedd sawl arolwg ymysg y ffermwyr eu hun yn awgrymu bod y rhan fwyaf yn cytuno gyda’u cynrychiolwyr. Er enghraifft, mewn arolwg a gynhaliwyd gan Farmers Weekly ym mis Ebrill 2016, mynegodd llai na hanner o’r ymatebwyr o Gymru eu bod o blaid gadael. Rheswm posib am hyn yw bod ffermwyr Cymru (a’r Alban) wedi manteisio’n fwy o’r UE na ffermwyr ranbarthau eraill y Deyrnas Unedig; ac efallai eu bod yn fwy ymwybodol o’r manteision na grwpiau eraill o’r boblogaeth yng Nghymru gan eu bod wedi elwa’n uniongyrchol. Serch hynny, mae’r dyfodol y tu allan i’r UE, a’r ffermwyr yn wynebu cryn ansicrwydd.

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Bygythiadau •

Y Polisi Amaethyddol Cyffredin: ni fydd ffermwyr Cymru bellach yn elwa o gymorthdaliadau Ewropeaidd. Yn 2014-15, cafodd ffermwyr Cymru £240m o daliadau uniongyrchol, a byddai dros hanner ohonynt wedi gwneud colled heb y taliadau yna. Yn ogystal, ar gyfer y cyfnod 2014-2020, clustnodwyd £957m i gefn gwlad Cymru trwy’r Rhaglen Datblygu Gwledig sef system o ddosbarthu grantiau a benthyciadau i ddatblygu amaethyddiaeth, yr amgylchedd a chymunedau.

Y Farchnad Sengl: mae’n debyg na fydd ffermwyr Cymru bellach yn elwa o’r parth di-doll ar draws Ewrop. Ar hyn o bryd, mae’r UE yn derbyn dros 90% o allforion amaethyddol Cymru gyda’r Iseldiroedd, yr Iwerddon, Ffrainc, yr Eidal a’r Almaen yn farchnadoedd allweddol. Hefyd, yn 2014, enillodd

Hybu Cig Cymru £3.2m o’r Comisiwn Ewropeaidd er mwyn hyrwyddo Cig Oen Cymru a Chig Eidion Cymru yn Ewrop - ill dau eisoes wedi derbyn statws Dynodiad Daearyddol Gwarchodedig gan y sefydliad.

• Cytundebau masnach newydd: yn 2014 yn ôl Cyfundrefn Masnach y Byd, 5.3% oedd tariff gyfartalog mewnforion i’r UE; 12.2% oedd y ffigwr i gynnyrch amaethyddol yn gyffredinol; a 42.1% oedd y ffigwr i gynnyrch llaeth yn benodol. Y peryg amlwg yw y gallai allforion o Brydain i’r UE fod yn anghystadleuol yn y dyfodol. Felly mae Prif Weinidog y Deyrnas Unedig (DU) wrthi’n paratoi’r ffordd am fesuriadau rhyddfrydoli masnach y tu allan i’r UE, ac mae hi wedi mynegi ei pharodrwydd i ddod i gytundebau yn gyflym gyda gwledydd y Gymanwlad megis Seland Newydd. Fodd bynnag, mae cig oen Seland Newydd yn gymharol rad yn barod, a byddai cytundeb masnach rydd yn

Diffyndollaeth yr Unol Daleithiau (UD): llynedd, roedd diwydiant cig coch y DU yn obeithiol y byddai’r gwaharddiad ar allforion i’r UD (yn sgil y braw BSE) yn diweddu; ac amcangyfrifodd Hybu Cig Cymru y gellir allforio gwerth £20m y flwyddyn o Gig Oen Cymru yno. Fodd bynnag, mae’r Arlywydd newydd wedi datgan yn glir ei fod yn bwriadu rhoi’r flaenoriaeth i gynnyrch domestig o bob math trwy osod tariffau sylweddol ar gynnyrch tramor. Tra’n ymgyrchu, addawodd ffermwyr y wlad y byddai’n gwaredu rheoliadau a gostwng trethu er mwyn atgyfnerthu eu sefyllfa. Mae safonau diogelu bwyd a’r amgylchedd yn go wahanol yn yr UD gyda bwydyd wedi’ uhaddasu’n enetig, hyrwyddwyr tyfu hormonaidd ac amrediad eang o blaleiddiaid yn dderbyniol. Eto mae Theresa May wedi cyfleu ei dymuniad i ddod i gytundeb buan gyda Donald Trump; ond er mwyn cyflawni hyn, bydd angen cryn gyfaddawdu ar y ddwy ochr.

Cyfleoedd • Sicrwydd bwyd: mae bwyd yn gynnyrch hanfodol, ac mae’r boblogaeth ddomestig (a byd-eang) yn cynyddu law yn llaw â’r galw am fwyd. Felly mae yna ddadl gref i barhau i roi cymorthdaliadau i’r ffermwyr er mwyn sicrhau cyflenwad digonol. Hefyd, gellir dadlau y bydd arian ar gael i wneud hyn oherwydd bod y DU wedi cyfrannu £6bn y

flwyddyn tuag at y Polisi Amaethyddol Cyffredin ac wedi derbyn ond £3bn y flwyddyn yn ôl. Yr her i wleidyddion Cymru fydd gwneud yn siŵr bod swm cymesurol o’r arian yma yn cael ei drosglwyddo o San Steffan i Fae Gaerdydd.

Perthynas newydd gyda’r UE: er bod nifer o wleidyddion yr UE yn addo perthynas israddol gyda’r DU yn dilyn Brexit, mae Theresa May mewn sefyllfa gadarn i fargeinio. Er enghraifft, os byddai’r UE yn gosod tariffau uchel ar fewnforion o’r DU, gallai’r DU osod tariffau tebyg ar fewnforion o’r UE. Yn ogystal, mae gwerth mewnforion i’r DU o’r UE yn uwch o lawer na gwerth allforion o’r DU i’r UE, gydag oddeutu hanner y diffyg masnach yn bodoli rhwng y DU a’r Almaen. Felly byddai parhau i fasnachu ar delerau rhesymol yn ffafriol i’r ddwy ochr.

Cynnyrch premiwm: ni fydd ffermwyr Cymru yn gallu cystadlu gyda’r UD a Seland Newydd o ran darbodion maint. Fodd bynnag, mae ganddynt gynnyrch o ansawdd uchel sydd eisoes yn cyfiawnhau prisiau uchel mewn marchnadoedd detholus. Er enghraifft, mae gwerthiannau cig coch Cymreig yn ennill £200m y flwyddyn yn segment premiwm o’r farchnad yn yr Almaen. Byddai ymgyrch farchnata gyfunol yn gallu ehangu a chreu marchnadoedd tebyg.

bod yn cynnal y safonau uchaf o hwsmonaeth anifeiliaid a rheoli tir pori ers cenedlaethau, a byddant yn ganolig i wlad ffyniannus am genedlaethau i ddod. Gallai hyn gynnwys symud tuag at hunangynhaliaeth bwyd a chyfrannu’n –fwy at egni amgen.

Er gwaetha’r holl fygythiadau sy’n wynebu ffermwyr Cymru, mae yna gyfleoedd sylweddol y gellir ymelwa arnynt. Mae’r cyfrifoldeb gwleidyddol am amaethyddiaeth wedi’i ddatganoli i Gynulliad Cenedlaethol Cymru, felly dylai Ysgrifennydd y Cabinet dros yr Amgylchedd a Materion Gwledig fod yn arwain y ffordd tuag at isafu’r bygythiadau, uchafu’r cyfleoedd a chodi proffil y sector. Yn wir, mae llais cryf ac unedig o’r ffermwyr, eu hundebau a’r cynrychiolwyr gwleidyddol yn hanfodol er mwyn sicrhau dyfodol llwyddiannus.

Summary

In the wake of the EU referendum, Welsh farmers are facing a number of threats including the loss of subsidies via the CAP; the loss of tariff-free access to the Single Market; potential new free trade deals e.g. with New Zealand which could render Welsh Lamb uncompetitive; and US protectionism. However, there are a number of opportunities including the need for food security for a growing population; a new relationship with the EU in which the potential for tit for tat tariff increases could ultimately lead to • Cynaliadwyedd a moeseg: mae Deddf reasonable trading arrangements for yr Amgylchedd (Cymru) 2016 a Deddf all; premium product markets; and a Llesiant Cenedlaethau’r Dyfodol growing concern for sustainability and (Cymru) 2015 yn arwyddocaol o’r ethics. Welsh farmers, their unions and pryder cynyddol am adnoddau the Cabinet Secretary for Environment naturiol a chymunedau yn yr hir and Rural Affairs need to be united in their dymor. Mae ffermwyr Cymru wedi efforts to minimise the threats, maximise the opportunities and lift the sector’s profile to ensure a successful future.

Vol 7 Issue 2 2017 | 17

Image: ©oticki/Shutterstock

Sector Amaeth Cymru: Bygythiadau a Chyfleoedd

arwain at ostyngiadau pris ychwanegol. O ganlyniad, gallai ffermwyr Cymru ddioddef ymhellach.


| SOUTH WALES BUSINESS REVIEW

ADOLYGIAD BUSNES DE CYMRU |

Think-Piece: Steering Welsh Business through Times of Change Lynne Connolly, Chwarae Teg

Chwarae Teg consultant Lynne Connolly reflects on how Welsh Business can use its unique business culture to gain competitive advantage and cope with change.

Welsh Businesses are resilient. We have seen tough times in the past and come through it. However, you could be forgiven if the past few months of uncertainty following the Brexit Vote of 23rd June 2016 have left you feeling a little perturbed. According to the HRMC (2016) 41% of Welsh Exports go to the EU and Wales’s EU funding allocation for 20142020 equates to an annual average of around £230 per head, greater than the £85 per head across the UK as a whole. Businesses would like to know the potential impacts upon trade and investment and what funding and support will continue. Soft Brexit, Hard Brexit and everything in between, who knows? One thing is for sure, the exit strategy and its impact are difficult to predict. Whilst we are going through a period of uncertainty, there are plenty of reasons for us to be optimistic about the future for Welsh Business.

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Through the Looking Glass What we need to plan for is steering our businesses forward during a time of change and uncertainty. Instead of focusing on what we can’t control, why not look towards what is great about Welsh entrepreneurship and business. Aside from contingency planning for how your business may potentially be impacted by changes such as Brexit, what can we do to move our businesses forward decisively and cope with change? We know our strengths and what makes goods and services in Wales stand out from the crowd. Small and medium sized enterprises accounted for 62% of employment and 39.7% of turnover in 2016, with large enterprises accounting for the remainder (ONS, Nov 2016). We are agile, able to respond to change quickly and adapt our business plans. Our ability to implement change quickly and decisively strikes me as a competitive advantage for Welsh business.

Revisit the Core Values of Your Business Having a great culture based on a solid set of core values that are lived in your organisation allows for better working relationships with your customers, suppliers and partners. It’s your business culture and core values that set you apart from your competitors. Pricing and marketing strategies can be undercut or replicated by competitors, however your business culture and values cannot. They are unique and often the reason why customers make the choice to come back to you time and time again for goods or services.

Maintain and Grow

Leaders and employees can grow tired of working in uncertain conditions and coping with continuous change. Working in an environment where you are operating in ‘survival mode’ and ‘fire-fighting’ all the time is exhausting and not sustainable in the long term.

In our busy lives it’s tempting to bury our heads in the sand in the face of change. A good starting point is for us to simply maintain what our business is doing well. If you already export to the EU, your customers come to you for a reason, but what about looking for opportunities to grow and develop. What about other export markets? According to the HMRC (2015) UK Trade Information report, the USA was ‘Wales’s single largest goods export market, accounting for 23% of all Welsh goods exports.’

It’s important as business leaders to take a step back, objectively analyse what hand your business has been dealt and identify the opportunities within what may be adverse conditions. Keep a positive attitude and involve staff in identifying opportunities for growth. If you begin to focus disproportionately on what may go wrong, this clouds your judgement, leaving the business feeling vulnerable to change. It’s then hard to make objective decisions and things can seem worse than they actually are. We begin to fear what may never happen. Whilst business contingency planning and risk assessment is essential, balancing this with confident and objective decision making to tackle the ups and downs is both a positive and practical approach. This creates a safe and positive culture for staff to move forward in and continue doing what they do best.

If you are overly reliant on EU funding or exports, it’s time to reevaluate the risk this may pose to business sustainability. Create a plan to maintain your market position and expand into other potential markets outside of the EU, and investigate ways to diversify your sources of funding support. It is well worth revisiting your business plan and core values on regular basis. If you are planning growth and development, look through your plans using your core values as a lens, reflecting on whether your changes are in line with your values. Never underestimate the value of a good old fashioned SWOT analysis. Yes, I know…… but have you actually done this lately as a team against your business plan, or used this to evaluate ideas for growth? In my experience, the simple tools are the best to get initial ideas flowing and new directions established.

Change the Narrative and Feed your Business Our attitude to change affects our behavior and decision making. If we make business decisions based on the fear of what may or may not happen, there is a danger of making short-sighted decisions. Change is cyclical; although it is easier to do well during times of economic strength, if you can maintain or even grow during a time of uncertainty, this can only mean great things for the future of Welsh business as a whole. Continue feeding your business, motivating staff, getting ideas from everyone, and making positive changes. Continue to invest in staff development. Play the long game. Hold your nerve. If you haven’t dealt with change before, learn from others, learn from history, and trust staff to support the business through change. We have so many inspirational businesses in Wales and it’s a fantastic place to do business from, although I am biased! It’s all too easy to get distracted by the plethora of negative media articles about Brexit and the state of the economy and start to let this define the narrative of our business. Wales is definitely Open for Business. For more information about how Chwarae Teg can support your business please visit: makeyourself.wales/makeyourself.aspx

Ask yourself are staff aware of the core values and living them? What makes your business great? What are all the great things about your products and services and how you deliver these? Better still; involve staff in the process of re-establishing the values that are important to them. It is these types of conversations that motivate people and ideas for improvement and new business often come to the fore.

Image: ©Dabarti CGI/shutterstock

Steering Welsh Business through Times of Change

Leading by Example

Vol 7 Issue 2 2017 | 19


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ADOLYGIAD BUSNES DE CYMRU |

In Conversation: Bjarte Bogsnes on moving Beyond Budgeting We met up with Bjarte Bogsnes, Vice President Performance Management Development at Statoil, author of Implementing Beyond Budgeting, and Chairman at the Beyond Budgeting Institute, during his recent visit to Swansea Business School to discuss the Beyond Budgeting approach, which challenges traditional cost management approaches based on budgeting and offers a surprisingly effective alternative… SWBR: Can you give us a brief summary of what Beyond Budgeting is all about and the philosophy behind it? BB: Well the very short version is that it is about making organisations more agile, and more human. Not necessarily as a goal itself, but because this is both good and necessary for great performance. So, it is all about helping organisations to perform better, by radically challenging traditional management and traditional leadership approaches, which were invented for very different times, with noble purposes, but they have run their course. There’s a lot of product and technology innovation that took place a hundred years ago that we all agree is completely outdated and we wouldn’t think about applying it today, whereas a lot of our traditional management beliefs are – like for instance budgeting – hundred-year-old management technologies. You know I sometimes wish that we all could have a collective memory loss so we would wake up in the morning and we couldn’t remember anything about how we were leading and managing organisations. I doubt that the first thing that we would think is ‘we need a detailed annual budget for next year’! 20 | Vol 7 Issue 2 2017

The problem is that we don’t have that memory loss, on the contrary we remember too well how we used to do things and this is actually one of the barriers. ‘We have always done it like this’ is the most stupid argument I hear for continuing to do something.

SWBR: So is Beyond Budgeting a clean page approach – an ideal world approach? BB: No, it isn’t necessary a clean page, but it is a view on doing things that we already do today in very different and much better ways. It is a philosophy and some principles, more than a recipe. There are way too many management ‘recipes’ out there, which I don’t like because somebody has done all of the thinking for you, which is both boring and dangerous.

SWBR: And because no business is alike? BB: That’s right, there are differences in history, culture, and of course the type of business which should influence what companies do, but the common denominator is all about a more agile, more human, more flexible approach oganising your processes so they are more in line with rather than against human nature. A lot of traditional management is organised against human nature, I would argue. The name ‘Beyond Budgeting’ is actually somewhat misleading, because the purpose is so much broader, it’s about changing traditional management, of which budgeting is a part. Budgeting sits, typically, at the core of traditional management, so if you want to change traditional management it is very hard to do so without doing something about the budgeting process.

SWBR: And what value do you think the Beyond Budgeting approach brings to organisations? BB: First of all they become better places to work, and better places to work result in better performance, not just because they take people seriously, but they create conditions for people to perform, they create more agile management processes, which allow people to react faster. It allows people to take the initiative, instead of doing the opposite.

SWBR: You’re implementing this approach at Statoil at the moment; what have been the key challenges you have faced? BB: We’ve been implementing for ten years – this is not a project, it’s a journey! And we keep getting braver along the way, we have done things lately that would have been very hard when we started out ten years ago. We will do things in the future that may be borderline unthinkable today, so it is very much a journey. But, the main challenges we’ve faced, and we do have challenges, are all internal, and they all sit between the ears of people! It’s all about people. Our software systems are not a barrier, the market is not a barrier, the banks are not a barrier. 99% of the challenges have to do with our legacy and our heritage. Many of our managers have had an education where they were taught the opposite of what this is about, and, many of them have been good at doing this for many years. Maybe some of them actually are in management jobs because they are good at this stuff, and we should respect that this is challenging, difficult, and I think we should be careful saying the old stuff was wrong. It was simply developed for different times. Things are changing, and we need to adapt accordingly.

SWBR: You mentioned technology – how does technology affect the implementation? I’m thinking about the access that we have to big data and how technology fits with this as an approach? BB: We have a global, common SAP solution at Statoil. We’ve had it for a number of years and that has been important for us in two ways. First of all, in creating one version of the truth, which is important. The second way, which may be even more important, is it has enabled us to create a transparency that is so important in Beyond Budgeting. By having it all in one database, the same language, one version of the truth, we can create this transparency around ambition to action, around performance data, where people know that data can be trusted and they are comparable and so on. So, that has been very important for us.

The way we think about relative performance as an organisation is now a natural thing, not just for driving performance, but for learning from others. The holistic performance evaluation we have is quite unique compared to what most companies have today. I think our people take it for granted that that is the way performance evaluation should be. Ten years ago, fifteen years ago that was not the case and performance evaluation was much more narrow – you know, hit the number, red or green KPI. We also see that this gives us a competitive advantage when it comes to recruiting people. A lot of people want to work for us because we are different. The fact that we are different hasn’t been a barrier for us, and is actually a competitive advantage.

SWBR: You’ve talked about implementing Beyond Budgeting in a large organisation – but how does it work in a small organisation? BB: Well most organisations, maybe all of them, are actually born ‘Beyond Budgeting’. They become something else because they are told, as they grow, that this is not good enough. They are told by management consultants, by others that ‘you need budgets, you need strategic processes, you need compliance processes’, you need all of this stuff that one day kills all of that agility, flexibility, and humanity that your organisation had as a smaller thing. So, the big issue for small organisations is how can you grow without ending up with the same misery as big organisations. Keeping your Beyond Budgeting way of thinking is one way to do this.

SWBR: What changes have you seen at Statoil as a result of what you’re doing? BB: The changes have become so obvious over a long period, and there are a lot of them. There’s the transparency of data and league tables that people take for granted. There are no stupid detailed annual budget negotiations on travel costs, on entertainment costs, and on consultant costs. All those are gone.

"A lot of traditional management is organised against human nature"

Vol 7 Issue 2 2017 | 21


Swansea Business School ADOLYGIAD BUSNES DE CYMRU |

| SOUTH WALES BUSINESS REVIEW

News and Events

For full details and booking for any of the below events please contact: Jamie Tavender (Faculty Marketing Officer) jamie.tavender@uwtsd.ac.uk

Events @ Swansea Business School 1st March 2017, 10.30am

St David’s Day Sustainability Lecture: David Hieatt

Entrepreneur David Hieatt delivers the annual St David’s Day Sustainability Lecture at Swansea Business School. All welcome.

14th March 2017, 6pm

Computer Networks in Industry: Kevin White

Guest speaker in association with the Institution of Engineering and Technology. At Swansea Business School, all welcome.

27th April 2017, 6pm

Sustainability for Wales, can we leave women out?

Event in association with Chwarae Teg, features Margaret Jones, Joy Kent, Jo Bishop, and Trish Chalk. At Swansea Business School, all welcome.

Get that Edge! Get a University Student! How Do Internships Benefit Employers?

Nifer Uchaf Erioed yn Astudio Busnes yn Gymraeg

Record Numbers Studying Business in Welsh

Mewn digwyddiad arbennig, mae Prifysgol Cymru Y Drindod Dewi Sant wedi croesawu’r newyddion bod y nifer uchaf erioed o’i myfyrwyr wedi derbyn ysgoloriaethau gan y Coleg Cymraeg Cenedlaethol.

At a special ceremony, the University of Wales Trinity Saint David has welcomed the news that a record number of its students have received Coleg Cymraeg Cenedlaethol scholarships.

Yn ystod y flwyddyn academaidd hon, mae 67 o fyfyrwyr YDDS a Choleg Sir Gâr wedi derbyn ysgoloriaeth - yn cynnwys 9 o fyfyrwyr Ysgol Busnes Abertawe a 3 o fyfyrwyr Ysgol Busnes Caerfyrddin. Mae’r myfyrwyr yma yn astudio o leiaf traen o’u cwrs trwy gyfrwng y Gymraeg. Gweler yn derbyn ei thystysgrif o’r Pro Is-Ganghellor Cysylltiol Gwilym Dyfri Jones y mae Elizabeth Tomkinson, cyn-ddisgybl Ysgol Gyfun Cymer Rhondda ac ar hyn o bryd myfyriwr ar y cwrs BSc Cyfrifeg yn Abertawe.

During this academic year, 67 students at UWTSD and Coleg Sir Gâr have received a scholarship - including 9 students at Swansea Business School and 3 students at Carmarthen Business School. These students are studying at least a third of their course through the medium of Welsh. Pictured receiving her certificate from Associate Pro Vice-Chancellor Gwilym Dyfri Jones is Elizabeth Tomkinson, a former pupil of Ysgol Gyfun Cymer Rhondda and currently a student on the BSc Accounting course at Swansea.

22 | Vol 7 Issue 2 2017

• • • • • • • • •

Most Internships are free or very little cost to the employer Flexible, cost-effective work force not requiring a long-term employer commitment Proven, cost-effective way to recruit and evaluate potential employees Students bring new perspectives to old problems Quality candidates for temporary or seasonal positions and projects Freedom for professional staff to pursue more creative projects Year round source of highly motivated pre-professionals Visibility of your organization is increased on campus Your image in the community is enhanced as you contribute your expertise to the educational enterprise

For more information and to discuss your options contact: Manjit Biant manjit.biant@uwtsd.ac.uk 07723446393

Swansea Business School UWTSD High St Swansea Vol 7 Issue 2 2017 | 23 SA1 1NE


Forward Thinking

Next Issue Out Autumn 2017

To reserve a copy please visit www.uwtsd.ac.uk/swbr or email your name and address to: swbr@uwtsd.ac.uk

Image: ŠSergey Nivens/shutterstock

Protecting Wales’s Economic Future

Profile for Lucy Griffiths

South Wales Business Review Volume 7 Issue 2  

The business magazine from Swansea Business School at the University of Wales Trinity Saint David.

South Wales Business Review Volume 7 Issue 2  

The business magazine from Swansea Business School at the University of Wales Trinity Saint David.

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