WELCOME TO OSBORNE MANAGEMENT
BACKGROUND
CONSULTANTS LIMITED
Osborne Management Consultants Limited was created by its principal, Julian Garforth, to assist businesses in all sectors of the economy to overcome their financial difficulties. The company commenced trading on 9
ABOUT OSBORNE MANAGEMENT CONSULTANTS
March 1998.
Osborne Management Consultants Limited (“Osborne”) is a specialist company dedicated to designing and implementing Business Improvement Strategies for the small and medium sized enterprise (“SME”) community. Since its formation in 1998, the company has successfully assisted businesses in all sectors with annual turnover between £650,000 and £50m, to:
Stabilise and improve their financial and business performance without recourse to insolvency proceedings;
Improve operational procedures and practices, including changing business culture;
Devise and implement integrated business strategies to realise the long term potential of our clients;
Make the process of change a positive experience;
The SME community forms over 90% of businesses in the UK and is critical to the fortunes of the UK economy, yet often is disenfranchised from the high quality business support services needed due to the high cost of those services. At Osborne our aim is to provide value added, business support services that help companies to realise their full potential on a sustainable basis and to help secure any resources needed. Our consultants have a wide variety of financial, commercial and
Julian was concerned that Business Improvement and Change Management support strategies that were available to large organisations were not available to the SME business community, a sector that accounts for nearly 99% of all UK businesses, due to the high cost eroding any value that could be added by the strategies. Julian was aware from his own experience that the necessary strategies could be implemented on a costeffective basis in any company, regardless of size and sector. By using Osborne our clients can not only overcome address their immediate difficulties but can then start to grow, to take control of their own destinies, and to realise their full profit potential often with the support and encouragement of the lending institutions involved.
A successful Business Improvement and Change Management strategy should leave ALL stakeholders as winners; from employees who have enhanced job security and greater motivation from working for a successful organisation, through suppliers who have greater confidence in the supply chain relationship, to the lending institutions who can rebalance their risk and reward equation and become a proactive partner in the future growth and success of the business.
operations experience gained from a variety of industry sectors and this enables us quickly to understand the problems and opportunities facing clients and work with them to provide the appropriate value added solutions to those problems in the short, medium and long term. Our aim is to provide our clients with a positive legacy which should include improving the capability of the management team to make our presence on a day-today basis unnecessary as quickly as possible.
OSBORNE MANAGEMENT CONSULTANTS LIMITED: “more than just a financial solution for your business"
Clive Wheawall:
WHO WE ARE
Clive joined National Coal Board as an apprentice miner from school. Trained as an engineer eventually joining JCB where he rose through the ranks to become Group
OUR PRINCIPAL CONSULTANTS
Operations Director. He left to take a position as
Julian Garforth ACMA:
General Manager at the company that prepared the
Julian graduated in 1981 and spent 9 years in industry,
vans for British Telecom and British Gas following
principally with British Steel (Special Steels Division) in
privatisation. He has significant management
Sheffield, rising to the position of Divisional
experience including project management, production
Management Accountant. He joined the Business
management, people management and general
Recovery and Insolvency division of Coopers & Lybrand
commercial skills. Clive holds an MBA from
in Birmingham in 1990 and spent 5 years trading
Staffordshire University.
receiverships and undertaking bank investigations. In 1993 Julian was entrusted with Coopers & Lybrand’s first major turnaround assignment in Birmingham at Severn Valley Railway PLC. When the resident Accountant resigned and the recovery strategy faltered in 1995 he joined as Accountant and Commercial Manager. With the recovery complete Julian left in 1998 to set up Osborne Management Consultants Limited.
OSBORNE MANAGEMENT CONSULTANTS LIMITED: “more than just a financial solution for your business"
HOW WE DO WHAT WE DO
We have also successfully applied our techniques and strategies to new businesses from their inception.
PRODUCTS AND SERVICES TECHNIQUES USED
Every business has different characteristics, problems,
Every company is different and each merits an individual
challenges and opportunities. At Osborne Management
solution to their problems. At Osborne we believe that
Consultants Limited we have established our reputation
Business Improvement Strategies should improve the
through the successful application of our bespoke,
fortunes of all stakeholders. Our Business Improvement
Business Improvement Strategies to businesses often
techniques are not delivered remotely and offer more
with financial difficulties. Our services include:
than just a financial solution to the problems being
Finance and Commercial
encountered by a business. They require a review of all
aspects of the organisation to produce a balanced, focused and effective recovery strategy that provides a
Business Reviews and strategy documents;
long-term base for the client.
Cash Flow Management in extremely difficult circumstances;
The key to the success is to establish effective management control. It is important that Osborne
Production and successful implementation of
Production of Business Plans, Forecasts and Budgets and interpretation of actual performance;
establish good working relations with all employees at
Liaison with, and giving confidence to, financiers, creditors and all other business stakeholders;
all levels of the company hierarchy, as their
Management Accounts Preparation;
involvement, knowledge and understanding of the
Securing refinancing deals for clients;
business and the market the company operates in will
Management of commercial functions of
be instrumental in the successful implementation of the chosen strategy. The introduction of a range of effective
businesses;
controls and procedures is essential to give an early warning of problems.
Development of Management Information Systems.
Operations
The implementation of any Business Improvement
Project Management including installation of new production systems;
Strategy will involve change and the need to make
Operational Reviews
difficult decisions; those decisions need to be made with
Management of cultural changes;
care and the best quality information to minimise any
Management of staff reduction programmes and
negative implications to allow the company the best possible chance of success.
consultation exercises. Directors
Provision of non executive directors.
Once significant progress has been made, the day-to-day
Construction Services
involvement of Osborne can be reduced, although
Contract and Work in Progress Reviews;
experience has shown that some of our clients request
Debt Collection (trading and insolvent
us to stay involved for a longer period, either to work on further projects or to continue to support and review the management of the business.
companies);
Preparation of final accounts, applications, invoices and adjudication claims;
OSBORNE MANAGEMENT CONSULTANTS LIMITED: “more than just a financial solution for your business"
Contract planning and Project Management.
OSBORNE MANAGEMENT CONSULTANTS LIMITED: “more than just a financial solution for your business"
OUR EXPERIENCE SECTOR EXPERIENCE Since 1998 Osborne has been involved with over 100 clients in a wide variety of industry sectors, a sample of
MORE THAN JUST A FINANCIAL SOLUTION
which is shown below:
Financial difficulties arise from, and have their impact on, all aspects of a business, such as finance, production,
Sector
No. Employees
Annual
sales and marketing, employment, and the ability to
Turnover
maximise new opportunities identified. Yet there is
ÂŁM
often a reluctance to adopt new strategies, a fear from
Textile
160
9.0
plunging into the unknown, but it is also true that if we
Computers
110
22.0
always do what we have always done we will always get
Plumbing
275
17.5
what we have always got.
Education
65
1.1
Manufacturing
21
1.2
Our significant experience of numerous business
Timber
35
6.0
sectors, from a financial, commercial, operational and
Construction
150
30.0
personnel perspective enables us to work with our
Poultry
80
6.6
clients to design, implement and review Business
Technology
4
0.4
Improvement Strategies and Change Management
Software
50
2.2
programmes, becoming the extra eyes, ears and hands
Engineering
130
6.8
of the business.
Pig Production
700
50.0
Engineering
50
4.9
Football Club
65
2.9
Contracting
95
26.5
105
7.0
65
4.7
Wholesale & Retail Jewellery
Whilst sector experience is important very often our clients are looking to build their Business Improvement Strategies on the foundations of their own extensive understanding of the relevant industry sector. Construction Sector We have been involved with the Construction Industry since 1999. The sector has many idiosyncrasies that make it unattractive to other business support professionals and to the traditional banking sector. This is not the case at Osborne.
Further details of the specialist services for the sector are set out in Products and Services.
OSBORNE MANAGEMENT CONSULTANTS LIMITED: “more than just a financial solution for your business"
OSBORNE MANAGEMENT CONSULTANTS LIMITED: “more than just a financial solution for your business"
WHY CHOOSE OSBORNE
HOW TO CONTACT US If you would like to know more about the services outlined then please contact:
WHY CHOOSE OSBORNE? At Osborne we have people with a wide range of
Julian Garforth
experience ready to assist you and your business. Our
Managing Director
experience enables us to understand your problems and
Osborne Management Consultants Limited
to provide the solutions to those problems. Osborne
The Old Forge
has built up an enviable track record of success since
Prees Green
entering this challenging, high pressure market in 1998.
Whitchurch
Osborne offers a flexible, effective bespoke service to
Shropshire
our clients and treats them as individuals. We invest the
SY13 2BP
time, effort and care necessary to affect a successful Business Improvement Strategy.
Telephone:
01948 841360
Mobile Telephone: 07710 303579 Our fees are highly competitive and are structured to meet the needs and situation of our clients, wherever
E-mail:
omcl1998@live.co.uk
Website:
www.osborneconsultants.co.uk
they are in mainland Britain.
OSBORNE MANAGEMENT CONSULTANTS LIMITED: “more than just a financial solution for your business"
Over the last 2 years the UK economy has undergone
FOCUS ON: TOPIC 1 – THE SME BUSINESS SECTOR IN THE UK
some major changes and the SME community has, once again, been left to face the challenges on its own. The global financial crisis, and the subsequent restructuring by the financial institutions, has helped to create an
THE SME SECTOR
economy dominated by uncertainty. To survive and to
The Small and Medium Sized (“SME”) business
make progress will require businesses to change,
community is the most important, yet often overlooked,
although change is something that can be both difficult
part of the UK economy. In the current economic
to consider and difficult to implement. The recent
climate it is the speed of recovery of this sector, with its
change in economic climate has left a business
spirit of entrepreneurship and innovation, that will
environment that is unlikely to return to the days of
determine the speed of recovery for the UK economy as
cheap, plentiful, readily available finance. Companies
a whole.
will find it difficult to grow or survive without changing. For those prepared to change there are considerable
An SME business is defined as having:
Less than 250 employees;
Less than £25.9m annual turnover;
Less than £12.9m net assets;
opportunities to be gained in the long-term.
HOW OSBORNE CAN HELP THE SME SECTOR Osborne has been working with SME clients since 1998 to design and implement Business Improvement
The key features of the SME sector in the UK may be
strategies that have added significant value to
summarised as follows:
businesses.
SME sector No. Of firms Employees Sales
Large business
All businesses
4,915,150
8,170
4,923,320
10.4m
15.5m
25.9m
£1,827bn
£1,632bn
£3,459bn
Osborne can:
Provide experienced financial, operational and commercial consultants to work with you to review the business;
Design the business strategy, including running scenarios;
Implement the strategies with or for you;
Osborne Management Consultants Limited was
Design and run the review mechanisms;
established in 1998 by Julian Garforth to specifically
Revise the strategy regularly for new information – may include updated budgets and forecasts;
provide support to underperforming businesses within the SME community, which he saw as being
Review and revise key processes and procedures;
disenfranchised. Large businesses had the power,
Build relationships with all key stakeholders;
visibility and access to the best quality professional
Work with finance providers to secure correct finance structure where necessary;
advice, but due to the cost (and hence the lack of value added) these quality professional services were not
Provide working non-executive directors where necessary;
available to the SME community. Since 1998 we have helped over 100 firms to improve their financial and
Drive profit and cash improvements;
operational performance.
Manage cultural changes.
OSBORNE MANAGEMENT CONSULTANTS LIMITED: “more than just a financial solution for your business"
strong finance restricts the creative spark of the
FOCUS ON: TOPIC 2 - THE IMPORTANCE OF
entrepreneur. Aside from the technical skills a good Finance Director
GOOD MANAGEMENT AND QUALITY PEOPLE
should:
FOR THE UK SME BUSINESS SECTOR
Have the ability to interpret numbers rather than just report them;
IMPORTANCE OF GOOD MANAGEMENT Research shows that there can be many contributing
Build trust in, and relationships with, all key stakeholders;
influences to business success, but one of the key
Have strong communication skills;
factors is the quality of the people in the business.
Have strong people skills;
Indeed, it is often stated that people, in general, are the
Demonstrate the ability to control, lead and inspire
competitive advantage for a business but it is the quality of the management and leadership, whether at a
team;
Build strong working relationship with Managing
financial, operational or commercial level, that can be
Director and have the ability to challenge him or
the biggest single influence.
her without dividing the organisation;
Have in-depth commercial understanding of the Good management starts at the top with the Board of Directors. It is their responsibility to create an effective, efficient corporate structure to provide:
Leadership, inspiration and motivation;
Commercial perception;
Communication;
Discipline;
Ability to balance day-to-day and strategic issues effectively;
Large organisations often have the resources and status to attract and retain the best people as they drive the business towards increased shareholder value. For the SME sector the issue of good people can be a significant challenge.
business and what drives it;
Manage the risks of the business by saying “yes” rather than “no”;
Have strategic awareness, forward thinking and forward planning;
Have experience of business, including the experience of weathering business storms;
Be a rounded individual but a strong team player; HOW CAN OSBORNE HELP? Osborne have considerable expertise of working with SME businesses in all sectors under all circumstances and are able to provide to provide high calibre individuals from financial, operational or commercial backgrounds under a tailored, value added package that
CHARACTERISTICS OF A GOOD FINANCE DIRECTOR Good people are hard to find yet they are the backbone of any successful organisation. The role of Finance Director is critical for large organisations, where liaison
enables our SME clients to increase the calibre of staff but within the economic capability of the business. An SME business can then have the same opportunities as larger organisations.
with institutional investors is a key element of the role, but becomes less defined at the SME level. Many SME businesses do not see the value of a strong finance function, often because the businesses were founded by entrepreneurs and the conventional wisdom is that a
OSBORNE MANAGEMENT CONSULTANTS LIMITED: “more than just a financial solution for your business"
FOCUS ON: TOPIC 3 - THE IMPORTANCE OF A
CHANGE AND THE MANAGEMENT OF CHANGE
POSITIVE APPROACH TO CHANGE
We all know that change can be difficult to deal with.
MANAGEMENT IN REVITALISING THE UK SME
Today the pace of change is arguably greater than it has
BUSINESS SECTOR
ever been, which is why nostalgia is such a growing business. The key is to have control of as many of the elements of change as possible. This requires the ability
BACKGROUND In November 2009 the Confederation of British Industry (“CBI”) issued a discussion paper about how British business is likely to develop over the next 5 – 10 years
to plan and to work on both the long and short term levels at the same time. For many owners of Small and Medium sized businesses the day-to-day challenges take up most of their time.
and the implications for the economy. The over-riding message of this document was that the changes were so significant that there will be no return to “business as usual”. The next decade will almost certainly be
The ability to plan for the long-term enables a business to give confidence to all its stakeholders including suppliers, customers and employees.
characterised by a higher level of economic volatility. In particular, finance will be more expensive and restricted in its availability. As the banks and financial institutions look to restore their balance sheet values their risk and reward criteria will change. For the banks there needs to be a more realistic pricing of risk. For many
HOW OSBORNE CAN HELP Osborne has been working successfully with SME clients since 1998 to design and implement Business Improvement strategies that have added significant value to businesses.
businesses operating in a world of reducing margins there will be an economic need to reduce the reliance on debt. The key to survival and growth will be the
Osborne can:
Provide experienced financial, operational and commercial consultants to work alongside you and
ability of the business to adapt and change.
to support you whilst we review the business; THE IMPORTANCE OF THE SME BUSINESS SECTOR
Design the business strategy, including running scenarios;
The SME sector is critical to the success of the UK economy. The sector covers nearly 5m businesses,
Implement the strategies with or for you;
employing over 10.4m people (excluding owner
Design and run the review mechanisms;
managers) and generating turnover of £1,847bn or
Revise the strategy regularly for new information – may include updated budgets and forecasts;
nearly 53% of UK output. The current Government has built part of its economic recovery strategy on creating a
Review and revise key processes and procedures;
buoyant private sector that can increase employment.
Build relationships with all key stakeholders;
To take advantage of the opportunities the sector needs
Build capability of management team;
to be confident, funded and able to be both willing and
Work with finance providers to secure correct finance structure where necessary;
able to deal with change. With the restrictions in the finance sector an element of self-help, a focus on
necessary;
internal improvements will be a core part of the longterm strategy.
Provide working non-executive directors where
Drive profit and cash improvements;
OSBORNE MANAGEMENT CONSULTANTS LIMITED: “more than just a financial solution for your business"
Manage cultural changes.
OSBORNE MANAGEMENT CONSULTANTS LIMITED: “more than just a financial solution for your business"
organisation framework;
FOCUS ON: TOPIC 4 - MAXIMISING NEW OPPORTUNITIES IN THE UK SME BUSINESS COMMUNITY
High calibre people within a disciplined
Positive attitude towards change
HOW OSBORNE CAN HELP THE SME SECTOR Osborne has been working with SME clients since 1998
BACKGROUND
to design and implement Business Improvement
The global economic crisis, at a macro level, has had a
strategies that have added significant value to
major effect on the hearts and minds of most nations.
businesses.
At a micro level the impact has been felt by every business in some way, whether in a positive or negative
Osborne can:
way:
Provide experienced financial, operational and commercial consultants to work with you to review
Consumer confidence has been undermined leading to a reduction in sales and sales lead times;
the business;
Design the business strategy, including running
The availability of finance has been constrained;
The price of finance available has increased
Implement the strategies with or for you;
significantly as providers seek to achieve a real cost
Design and run the review mechanisms;
of risk;
Revise the strategy regularly for new information –
scenarios;
Unemployment and inflation have been features of
may include updated budgets and forecasts;
an economy that can no longer be classified as
Review and revise key processes and procedures;
benign;
Build relationships with all key stakeholders;
Work with finance providers to secure correct
For many businesses the low interest rates have been a counterbalance to the economic conditions but this
finance structure where necessary;
situation is forecast to recover only slowly and expert
Provide working non-executive directors where necessary;
opinion is that many of these changes are unlikely to be
Drive profit and cash improvements;
reversed. There will be no return to business as usual.
Manage cultural changes.
KEY FEATURES There are organisations, however, that see economic uncertainty as a business opportunity. Often these organisations are the ones that exhibit:
Well structured long term strategies;
Pursuit of profits and cash year on year;
Strong relationships with all key stakeholder groups;
Innovative thinking;
Strong management;
Commercial acumen including effective environmental monitoring systems;
OSBORNE MANAGEMENT CONSULTANTS LIMITED: “more than just a financial solution for your business"
This is an appropriate time for strengthening the bonds between business and the finance institutions, agree on
FOCUS ON: TOPIC 5 - DEAD MEN WALKING:
the common objectives, understand the position of the
HELPING THE FINANCE INDUSTRY TO INJECT
other party and establish the correct strategy that will benefit the business, the bank and, consequently, the
LIFE INTO THE “STANDSTILL” BUSINESS
UK economy.
COMMUNITY HOW OSBORNE CAN HELP Osborne has been working successfully with SME clients since 1998 to design and implement Business BACKGROUND
Improvement strategies that have added significant
The global economic crisis has had an adverse impact on
value to businesses and reduced or eliminated cases
all aspects of life. For the financial institutions and
that were causing banks problems. Our solutions focus
businesses the crisis has left mixed messages.
on addressing the issues facing the business. Osborne
Impact on Finance Houses
Impact on Businesses
can:
- Increased bad debt
- Restriction on availability of
funds - Global effect increases
water;
- Increase cost of funds
uncertainty - Balance sheet restructuring
- Inability to access funds for growth opportunities
- Increased regulation
- Declining market place
- Rebalance “risk: reward”
- Blaming others when need
margins equation
to focus internally
to support you whilst we review the business;
prospect of increased regulation to reduce the possibility that it will happen again and all this against a
Implement the strategies with or for you;
Design and run the review mechanisms;
Revise the strategy regularly for new information – may include updated budgets and forecasts;
Review and revise key processes and procedures;
Build relationships with all key stakeholders including the banks, finance institutions and
backdrop of public hostility towards banks for their
investors;
perceived role in the crisis. For many businesses the crisis has resulted in a form of
Build capability of management team;
Work with finance providers to secure correct
corporate paralysis – cash flows have tightened and
finance structure where necessary;
sales have become highly volatile. The historically low interest rates are masking the issue for many businesses
Design the business strategy, including running scenarios;
The financial losses have necessitated a restructuring of bank balance sheets to restore capital reserves, and the
Provide experienced financial, operational and commercial consultants to work alongside you and
- Undermine relationship with finance world
- Ownership changes
Focus on businesses that are presently treading
Work with businesses deemed to be exit cases from
and some will be faced with the prospect of defaulting
their existing lenders to try to find alternative
on loans when, not if, interest rates rise to represent a
funding options;
more realistic price for risk.
Provide working non-executive directors where necessary;
It is at this time that leadership and positive action are required yet many businesses are in denial and choosing
to seek more funds from their banks despite the
Manage cultural changes.
Drive profit and cash improvements;
collapse in security values. REBUILDING THE RELATIONSHIP
OSBORNE MANAGEMENT CONSULTANTS LIMITED: “more than just a financial solution for your business"
Osborne Management Consultants Limited was
FOCUS ON: TOPIC 6 - SURVIVING THE DEATH
established in 1998 by Julian Garforth to specifically provide support to underperforming businesses within
OR INCAPACITY OF THE OWNER IN THE SME
the SME community, which he saw as being
BUSINESS
disenfranchised. Large businesses had the power, visibility and access to the best quality professional
BACKGROUND
advice, but due to the cost (and hence the lack of value
The Small and Medium Sized (“SME”) business
added) these quality professional services were not
community is the most important, yet often overlooked,
available to the SME community. Since 1998 we have
part of the UK economy. In the current economic
helped over 100 firms to improve their financial and
climate it is the speed of recovery of this sector, with its
operational performance.
spirit of entrepreneurship and innovation, which may determine the speed of recovery for the UK economy as
HOW OSBORNE CAN HELP Osborne would look to build a bridge with the business
a whole.
at an early stage, operating as a professional adviser. By understanding the business and building trust with the ROLE OF THE ENTREPRENEUR Many SME businesses are the result of an invention by an entrepreneur. Some go on to be leading organisations on both the national and global business
employees and other stakeholders Osborne can be in the ideal position to bridge any gap whilst the family come to terms with the temporary or permanent absence of the owner-entrepreneur.
stage. For the other companies the entrepreneur becomes the figurehead of the organisation. He or she is often the focus of the sales and product development
Osborne can:
aspect of the business and the primary link with
commercial consultants to work with you to review
customers, suppliers and the providers of finance. Employees look to the owner-entrepreneur for their
the business;
employment security.
The owner-entrepreneur’s family also has a significant interest in the business. Not only does it provide a lifestyle and legacy for the family but it can also be the employer of the future generations of the ownerentrepreneur. In the large organisation the burden is shared by the extensive management team.
Provide experienced financial, operational and
Design the business strategy, including running scenarios;
Implement the strategies with or for you;
Design and run the review mechanisms;
Revise the strategy regularly for new information – may include updated budgets and forecasts;
Review and revise key processes and procedures;
Build relationships with all key stakeholders;
Work with finance providers to secure correct finance structure where necessary;
The owner-entrepreneur is, therefore, a key cog in the business environment. If that cog is removed, either temporarily or permanently, the ramifications can be significant.
Provide working non-executive directors where necessary;
Drive profit and cash improvements;
Manage cultural changes.
ABOUT OSBORNE
OSBORNE MANAGEMENT CONSULTANTS LIMITED: “more than just a financial solution for your business"
OSBORNE MANAGEMENT CONSULTANTS LIMITED: “more than just a financial solution for your business"
finance. The emphasis, therefore, should be to preserve
FOCUS ON: TOPIC 7 - THE UK CONSTRUCTION
firms whilst reducing the risk to financial institutions through a strategy of self-improvement.
INDUSTRY OSBORNE AND THE CONSTRUCTION INDUSTRY INDUSTRY FEATURES
Osborne has worked with subcontractors within the
The Construction Industry in the UK has been a key
industry since 1998 and has established many key
contributor to economic activity, and represents a key
contacts. Osborne is committed to the continued
component for economic growth in the present climate.
success and growth of the UK construction sector.
The key features of the industry are: Osborne can:
195,000 businesses;
Provide business and funding structure reviews;
Output of ÂŁ113bn or 10% of UK GDP;
Design and implement strategy to stabilise financial
Employs 1.1m people;
and operational performance, and improve cash and profit position;
Over the last 10 years the industry has undergone major
forecasts and working capital management;
structural change, driven principally by increased legislation and a shortage of quality workforce. These
Provide budgets and forecasts, including cash flow
Provide experienced Quantity Surveyors to
changes have driven out many experienced personnel
establish the real contractual position and
but the industry has done little to improve its image, an
effectively manage work in progress and
image that makes it unattractive to the youth of today
retentions;
thereby forcing the industry to rely heavily on imported
Preparation of claims and adjudications;
labour, principally from Eastern Europe.
Improve management information, systems procedures and processes;
During this period industry margins have also
Review of security;
deteriorated. With 80% of the firms accounting only for
Advice on acquisitions and the strategic exploitation of new opportunities;
20% of the output this deterioration in margins makes life difficult for the smaller contractors. Indeed, the
wind-down;
industry has the highest level of corporate and personal insolvencies of any UK business sector.
Management of project, divisional or company
Provision of non-executive directors where necessary;
CONSTRUCTION AND THE FINANCE INDUSTRY The industry has long been a walking contradiction for
Training of staff to make our day-to-day involvement unnecessary as soon as possible.
the finance industry. The industry has a meagre asset base and due to the contractual nature traditional funding lines are not available to businesses that manage work in progress, submit applications, operate retentions or perform projects that can be novated without recompense by the main contractor. This also means that traditional recovery options, such as administration, are of little value to the providers of
OSBORNE MANAGEMENT CONSULTANTS LIMITED: “more than just a financial solution for your business"
close financial controls, strong commercial relationships,
FOCUS ON: TOPIC 8 - SPORTS
wide business and sector-specific experience and an ability to deliver on promises found a willing audience.
ORGANISATIONS, FINANCE AND THE NEED FOR A BUSINESS OUTLOOK OSG Sports Consultants:
businesses of all types in the Sports sector;
BACKGROUND Sports organisations, whether professional football,
Provide a non-threatening, confidential solution to
Have significant business and sector-specific
cricket or rugby clubs or indeed whichever sport they
experience, many of which have been gained in
focus upon, continue to face financial challenges. At the
financially challenging circumstances;
lower echelons crowds remain static or declining, wages
Provide experienced financial, operational and
are continuing to rise and the challenge of balancing the
commercial consultants to work with you to review
books against the desire for success, whether within
the business;
sporting regulations or best business protocols, is
Design the business strategy, including running scenarios;
intensifying.
Implement the strategies with or for you;
KEY PERSONNEL
Design and run the review mechanisms;
Revise the strategy regularly for new information –
Julian Garforth – 22 years of Business Turnaround
may include updated budgets and forecasts;
and Restructuring including 14 years running his
own niche consultancy. Has completed the
Review and revise key processes and procedures;
administration and sale of Port Vale twice,
Identify and exploit commercial strategies to
including the latest episode commencing in March
increase revenues and value added, both for the
2012;
short and long term;
John Booth – Over 30 years in football, including 10
Build relationships with all key stakeholders;
years with Preston North End, rising to General
Work with finance providers to secure correct finance structure where necessary;
Manager, and 4 years with Stoke City as Commercial Director. Worked on the recovery of
Provide working non-executive directors where necessary;
Port Vale since July 2012. Owns Football Trade Directory, an influential networking medium based
Drive profit and cash improvements;
on news traffic and mutually beneficial trading
Manage cultural changes;
relationships;
Be the extra eyes and hands in a time of crisis – we add value by designing and implementing
HOW OSBORNE AND SPORTS GLOBAL CAN HELP THE
successful strategies and training staff to
FOOTBALL SECTOR
understand, use and enhance the tools provided for
Osborne and Sports Global have combined to form OSG
the benefit of our client.
Sports Consultants. The two organisations came together whilst working on the successful administration trading and sale of Port Vale, overseeing a club that, as at 30 December 2012, are the leading goal-scorers in England and are top of League 2. The combination of
OSBORNE MANAGEMENT CONSULTANTS LIMITED: “more than just a financial solution for your business"
FOCUS ON: TOPIC 9 - CHARITIES AND SOCIAL
Diversify;
Collaborate with other similar organisations to reduce costs e.g. through the operation of shared
ENTERPRISES
service agreements;
BACKGROUND
Engage in effective forecasting and planning;
Access the right financial and business advice;
The Charity and Social Enterprise sector is a key component of the UK economy, both financially and in terms of the important services provided both nationally and globally. The key features of the sector are:
Larger charities may be able to use their investment reserves to cushion the impact in the short term but the key to long-term success will be through making meaningful changes to the organisational structures and
Features
operations now.
No. Of Charities
162,000
Revenues Generated
£55.0bn
Forecast
HOW OSBORNE CAN HELP THE SECTOR
Funding cut of around
Osborne has worked with over 100 clients throughout
£5.0bn over the next 4
the UK since the business was founded in 1998,
years
designing and implementing holistic, Business Change and Improvement strategies. Our consultants have
Like all other business sectors, it has been affected
experience at financial, operational and commercial
adversely by the economic downturn. Nearly 60% of all
levels.
charities are reporting a reduction in government revenues at a time when the demand for services is
Osborne can:
increasing and is likely to continue to do so for many
Create a tailored, flexible package – Osborne
years to come. Pressure on household budgets will
operates with minimal overheads so the costs can
weigh on donations in the long-run but presently reports
be kept as low as possible to our clients;
suggest that retail sales amongst charity shops have
proved robust.
Design the business strategy, including running scenarios focusing particularly on means to reduce the unit operational delivery costs;
The government has established the Big Society
Implement the strategies with or for you;
initiative to use the voluntary sector to provide services
Design and run the review mechanisms;
as part of the efforts to restore the economy to health,
Revise the strategy regularly for new information –
but this support is not expected to offset public
may include updated budgets and forecasts;
spending cuts. As a result the Charity Commission is
Review and revise key processes and procedures;
concerned that many charities could find themselves on
Provide working non-executive directors where
a “financial cliff edge” as financial support is reduced and public service delivery contracts expire.
necessary;
Drive revenue and cash improvements;
Manage cultural changes. The challenge for charities will be to:
Drive income services to supplement public sector contributions;
Reduce the operational unit cost of delivery;
Increase the number of local contracts secured;
OSBORNE MANAGEMENT CONSULTANTS LIMITED: “more than just a financial solution for your business"
FOCUS ON: TOPIC 10 - THE STRUCTURE OF
Enhances loyalty so reducing labour turnover;
Increases productivity by approximately 10%;
Improves communication through greater
THE FIRM: A BETTER WAY?
transparency;
BACKGROUND
Is scaleable;
Is applicable to all business sectors;
If the recent economic crisis has left a message it is said, by some, to be this: the pursuit of short term gain is a
It is clear that the present inequalities in the political
false idol and that those responsible for that pursuit,
and economic systems are having a detrimental effect
namely finance professionals and politicians, are no
on social cohesion and this will create long-term damage
longer trusted by the majority of the UK population.
to the country. There is a window of opportunity to
Wealth creation, however, remains a viable, ethical
minimise the negatives and to take advantage of the
objective but only as a long-term strategy. The success
long-term opportunities to provide a stable prosperity.
of China in particular has shown that there is more than one model of capitalism. The big challenge for the UK is
HOW OSBORNE CAN HELP
to move to a long-term strategic business model that
Osborne has been working with SME clients since 1998
combines public purpose objectives with long-term
to design and implement Business Improvement
wealth generation under a private sector skin.
strategies that have added significant long-term value to businesses.
The concept of a firm has its roots in the puritan ethos, granting the owner/employer the freedom and power to
Osborne can:
dominate others and the concept of limited liability
Provide experienced financial, operational and
exacerbated this power. Today, this structure is
commercial consultants to work with you to review
peppered with intermediaries, some of whose motives
the business;
are unclear and whose activities are destructive to long-
term wealth creation and sustainability.
Design and implement a corporate structure that involves indirect employee ownership;
UK competition strategies are based on conflict and
Design the business strategy, including running scenarios;
naturally create a system of checks and balances. The
Implement the strategies with or for you;
trade union movement grew out of owner/manager
Design and run the review mechanisms;
excesses. There has been an increasing focus on the co-
Revise the strategy regularly for new information –
operative movement recently and this model has been
may include updated budgets and forecasts;
seen as a solution to our economic woes because it uses
Review and revise key processes and procedures;
wealth creation for the benefit of the many rather than
Build relationships with all key stakeholders;
the few.
Work with finance providers to secure correct finance structure where necessary;
Empirical evidence shows that a structure of indirect
employee ownership balances political and economic objectives and:
Increases job satisfaction;
Reduces absenteeism and downtime;
Provide working non-executive directors where necessary;
Drive profit and cash improvements;
Manage cultural changes.
OSBORNE MANAGEMENT CONSULTANTS LIMITED: “more than just a financial solution for your business"
FOCUS ON: TOPIC 11 - THE ROLE FOR VENTURE CAPITAL AND PRIVATE EQUITY IN THE UK SME BUSINESS COMMUNITY
BACKGROUND
Innovation;
Driving profitability;
Driving cash;
Strong management;
Commercial awareness;
Good presentation;
In the past the business community used the banking network to provide the finance needed for their operations. With the advent of the recent
HOW OSBORNE CAN HELP
economic crisis the availability of funds from these
Osborne has been working as a bridge between the
traditional sources will be both constrained and
business community and all types of financial
more expensive as the banks seek to restore their
institutions since 1998. Osborne can:
Balance Sheet positions and to establish the real cost of risk. The increase in the cost of funds
provided will make more business ventures
Identify the correct contacts to provide businesses with the best opportunity to secure investment
unviable or marginal and this may compromise the UK’s capability to recover from the recession quickly. This evolution in the finance market has
funding;
Create and present the business strategy and forecasts;
created an opportunity for the Venture Capital and Private Equity (“VC and PE”) market to have a
Implement the strategies with or for you;
greater influence on the length and breadth of the
Design and run the review mechanisms;
UK business community.
Revise the strategy regularly for new information – may include updated budgets and forecasts;
KEY FEATURES
Review and revise key processes and procedures;
In 2010 the key features of the VC and PE market
Build relationships with all key stakeholders;
were:
Provide working non-executive directors where necessary;
Feature Overall investment (global) (£m) Investment in UK (£m) Investment in UK (No. Companies) Average UK Investment per
Manage cultural changes.
20,447 8,237 823 10,000
company (£m) Funds raised (global) (£m)
6,594
Funds raised in UK (£m)
2,882
The UK does not appear to be backing itself. Average investments per company outside the UK were nearly £50m, five times the average in the UK. To be attractive to the VC and PE institutions UK business needs to raise their game and focus on:
OSBORNE MANAGEMENT CONSULTANTS LIMITED: “more than just a financial solution for your business"
HOW OSBORNE CAN HELP THE UK PROFESSIONAL
FOCUS ON: TOPIC 12 - SERVICES FOR THE UK PROFESSIONAL SERVICES COMMUNITY
SERVICES SECTOR Osborne has been working with clients since 1998 to design and implement Business Improvement strategies that have added significant value to businesses.
BACKGROUND Providing advice and support to all sectors of UK
Osborne can:
enterprise is a noteworthy undertaking and has
Provide experienced financial, operational and
contributed to the UK being one of the foremost service-
commercial consultants to work with you to review
led economies in the world today. This is a sign of the
the business;
maturity of the economy, having moved through
agrarian and industrial phases.
Design the business strategy, including running scenarios which may include the benefits of moving to an alternative corporate structure;
Historically, professional organisations have operated as
Implement the strategies with or for you;
partnerships, sharing risk and rewards across key
Design and run the review mechanisms;
individuals, and building turnover and market share on
Revise the strategy regularly for new information –
the back of networking and strong personal
may include updated budgets and forecasts;
relationships. The use of partnership structures,
Review and revise key processes and procedures;
however, runs the risks that:
Build relationships with all key stakeholders;
Work with finance providers to secure correct
Key individuals could leave and take key contacts and business with them;
finance structure where necessary;
That other members of the organisation
Provide working non-executive directors where necessary;
become disenfranchised with the limited
Drive profit and cash improvements;
opportunities to progress and leave, again
Manage cultural changes.
taking valuable contacts with them;
In difficult times the risk will impact on the personal liability of the partners.
The professional services sector has also garnered an image of being too closely aligned to the banking sector and of charging fees that do not always produce value added for the client. Osborne has worked with SME organisations since 1998 and is well placed to help provide a reshaped bridge between the professional services and SME sectors.
As the economy remains uncertain organisations require better management at all levels to manage the risk and to move the business forward at the strategic, financial, operational and commercial levels to meet the new challenges ahead.
OSBORNE MANAGEMENT CONSULTANTS LIMITED: “more than just a financial solution for your business"
FOCUS ON: TOPIC 13 - THE ROLE FOR
INSOLVENCY AND PRE-PACKS
INSOLVENCY AS PART OF BUSINESS
Underneath an underperforming business there can be a
RESTRUCTURING
good business struggling under the weight of debt and expectation. The solution can be to deal with the debt
ABOUT OSBORNE
through an insolvency process but to work with a
Osborne Management Consultants Limited was
licensed insolvency practitioner to arrange beforehand
established in 1998 by Julian Garforth to specifically
to buy the business back.
provide support to underperforming businesses within the SME community, which he saw as being
It is important for the owners to recognise that the
disenfranchised. Large businesses had the power,
business procedures and practices need to change to
visibility and access to the best quality professional
give the business the best chance of success second
advice, but due to the cost (and hence the lack of value
time around.
added) these quality professional services were not available to the SME community.
HOW OSBORNE CAN HELP Osborne has been working with SME clients since 1998
In 1998 there were many other professional advisers
and has strong relationships with many licensed
offering turnaround services but what differentiated
insolvency practitioners.
Osborne was our belief that a successful turnaround benefits ALL stakeholders, not just the bank. Whilst we
Osborne can:
have insolvency experience in the team we did not feel
Provide experienced financial, operational and
that formal insolvency procedures had a place in
commercial consultants to work with you to review
turnaround.
the business;
Design the business strategy, including running scenarios;
IMPACT OF THE ECONOMIC CRISIS The recent economic crisis has had a significant impact
Implement the strategies with or for you;
on the business and financial community. Finance is
Design and run the review mechanisms;
both scarce and more expensive as the banks
Revise the strategy regularly for new information – may include updated budgets and forecasts;
restructure their lending portfolios and their Balance Sheets. Confidence has been undermined, both in the
Review and revise key processes and procedures;
business and personal sectors, and this has resulted in
Build relationships with all key stakeholders;
sales being more uncertain. More businesses are
Work with finance providers to secure correct finance structure where necessary;
struggling and the insolvency rates are increasing. With the banks being introspective, and security values also
necessary;
subject to increased uncertainty, the opportunities for applying turnaround strategies are limited.
Provide working non-executive directors where
Drive profit and cash improvements;
Manage cultural changes.
For struggling businesses the formal insolvency procedures available are sometimes the only option available.
OSBORNE MANAGEMENT CONSULTANTS LIMITED: “more than just a financial solution for your business"
OSBORNE MANAGEMENT CONSULTANTS LIMITED: “more than just a financial solution for your business"