Peer-to-peer networking Performance matters Win a FREE lunch
Freedom Centre New breed of non-execs Managing difficult situations
business-action.co.uk | @businessactionm | Summer 2014
WELCOME
Take Business Action Welcome to this expanded summer issue of Business Action the magazine of the NDBA. It’s an exciting year for the NDBA with the forthcoming relaunch of our web site and our third annual online awards coming up.
Inclusive networking The NDBA has always sought to reach out across North Devon and beyond with no barriers: we welcome all businesses, wherever they are based in the area and whatever their size or sector. As Kevin Woodward explains in his article on peer-to-peer networking, what’s important is: ➤➤ making
connections
➤➤ developing
relationships
➤➤ exchanging
knowledge and helping each other
Putting advice into practice Our focus in this magazine is to @businessactionm | Summer 2014
discuss relevant topics in a way that helps you take action to improve, develop and grow your own business. Contributors offer their professional views on a range of issues affecting many businesses. We hope they inspire readers to take action. Supporting the community The NDBA also believes it is vital for people in business to support the wider community. This issue we also feature the Freedom Centre, which does valuable work to help vulnerable people in need. Jeremy Westcott from the charity regularly attends NDBA networking lunches and we are delighted to provide greater exposure for such a worthwhile cause. Please do support them in any way you can. Enjoy a good read We hope you enjoy this issue – both in print and online – and welcome your feedback and suggestions for future issues.
Let’s meet for lunch And do enter our competition on page 11 to win a free lunch at an NDBA end-of-month networking event. Good luck!
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FROM YOUR EDITOR
From your editor
It’s hard to believe that our last NDBA magazine was published in December when we announced our online awards winners. Why so long before this one? We’ve been discussing how Take Business Action! to make the ➤➤ Share experience magazine a ➤➤ Learn from peers source of useful ➤➤ Open up to new ideas articles and ➤➤ Take opportunities information for ➤➤ Let’s do it! anyone running a business in North Devon. Is there a need? From the response we’ve received, we’d say: yes. We hope you’ll find in the articles included useful ideas that you can apply in your business. Is there something specific you’d like to see covered? Please get in
touch and let us know. I’d like to thank all advertisers and contributors for supporting Business Action. Thank you too to Kevin Woodward, Stacey Pledge and Amelia Isaac. Let’s all take Business Action. Robert Zarywacz
Action is edited, designed and produced by Zarywacz editor: Robert Zarywacz tel: 07971 176044 email: robertz@business-action.co.uk online: business-action.co.uk Twitter: @businessactionm follow: Google+, LinkedIn, Facebook ■■ Business
Views expressed by contributors to this magazine are not necessarily those of the North Devon Business Alliance or Zarywacz. Readers are strongly recommended to seek advice from an appropriate professional before taking any action on any topic discussed in the magazine and to check full terms and conditions of any products or services promoted in advertisements. © 2014 North Devon Business Alliance and Zarywacz.
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Business Action | business-action.co.uk
CONTENTS
3 Welcome
22 Business Action online on PC, tablet and smartphone
4 From your editor Robert Zarywacz
24 Difficult conversations Rozz Algar
6 Performance matters
26 A Dragon in North Devon School for Startups
10 Peer-to-peer networking:
28 Advertise in this magazine Packages now available
Take Business Action
Lucy Fitzgerald
can it work for you? Kevin Woodward
11 Win a free lunch in our
photo competition
Post a Business Action selfie
12 A new breed of non-exec Boardcircle 14 What’s your point:
What is there to fear? Robert Zarywacz
17 Bespoke tailoring service Garry Nicholls 18 Why satellite broadband
won’t work for everyone Kevin Woodward
20 All your business needs
29 Seeing red Robert Zarywacz 30 What is networking? Kevin Woodward 34 Business power tool Robert Zarywacz 38 No one to turn to? Freedom Centre cares 42 North Devon networking 44 NDBA member Q&A: Gloria O’Connell 46 Looking ahead What’s in our autumn issue?
on a single page James Hellyer
@businessactionm | Summer 2014
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Performance matters In an exclusive series of articles on how to address challenging personnel issues, Lucy Fitzgerald starts with performance management
How do you deal with an underperforming employee? One of our staff members, John Smith, has been underperforming for three years. Despite many attempts to improve his performance with coaching and training, nothing has changed. What should we do? Many employers shy away from dealing with poor performance and it’s in your favour that you have attempted to approach this in a positive manner. However, as
6
there has been no improvement, it’s time to move to a formal performance procedure. Where do we start? First, gather together all the documents you will need. You should collect the evidence that you have of the training and coaching that you have provided and John’s supervisor should be in a position to specify where the issues lie and the effect that John’s performance is having on the company. When it comes Business Action | business-action.co.uk
HUMAN RESOURCES
to holding a formal capability meeting, preparation is the key. You should also check your disciplinary procedure (or capability procedure, if you have one) to ensure that you follow the stages specified within it. Can we dismiss John right away? The level of penalty that you can apply will depend on what has previously been communicated to John. You should consider: ➤➤ the
performance gap that exists and its severity
➤➤ whether
or not John has been clearly informed that his performance doesn’t meet expected standards
➤➤ whether
or not John has been informed that improvement is required by a specified deadline
➤➤ whether
or not John has been told that his employment may be affected
If the matter has been dealt with on an informal basis up until now, you’re advised to work through the warning levels in your capability or disciplinary procedure, giving John the opportunity to improve and to avoid any argument that he wasn’t aware of how serious the situation was. @businessactionm | Summer 2014
Poor performance cases should be dealt with on a case-by-case basis but the basic principle is that before dismissal is considered employees should be informed of the situation, what improvements are required by when and what the consequences will be if they fail to meet these. You should also check that there are no disability or other potential discrimination issues that may arise before taking action. Preparing a formal meeting We’ve decided to go ahead with a formal meeting. What do we need to cover? Follow the rules that cover the arrangements for a disciplinary meeting. You must notify John in writing of the meeting and provide him with whatever evidence you feel is relevant. As you are contemplating taking formal action against John, he has the right to be accompanied by a trade union representative or work colleague. At the meeting, the appropriate manager should inform John of the issues and ask him to provide any comments, information or mitigating circumstances that he feels are relevant to his case. Apply any penalty and inform If, after everything has been considered, you feel that
7
HUMAN RESOURCES
capability/disciplinary action is appropriate, you should apply the penalty and inform John of his right of appeal. The letter that is sent to John must contain details of the specific How to manage improvements underperformance required and ➤➤ Take a positive the deadline for approach achieving them. ➤➤ Check and follow your In this case, you disciplinary procedure ➤➤ Gather all documents may have the leeway to apply ➤➤ Communicate clearly a short deadline at every stage because of the previous support already provided to John. No improvement What if, as we suspect, John’s performance doesn’t improve? If the formal meeting suggested any further support should be provided to John, ensure that this has been provided before you take further action. If there is no improvement by the specified deadline, you should ask John to attend a further formal meeting. As before, John is entitled to be accompanied. Explain why performance is poor At the meeting, you should explain why John’s performance is still not up to standard and specify what John has failed to
8
achieve since the last formal meeting. John should be invited to provide comments or reasons for not meeting the required standards and all of the evidence should be considered before a decision is made. If John doesn’t improve and you have worked through your procedure and warning levels, you will be in a strong position to make the decision to dismiss and be able to demonstrate that the action you took was reasonable in the circumstances. Do we have to pay notice? Employees can only be dismissed without notice if they have been found to commit an act of gross misconduct. John is therefore entitled to his contractual or statutory notice. In such cases, it’s generally best to pay in lieu of notice and ask the employee to leave on the day of dismissal, but make sure that your contracts of employment include a clause that allows you to do this.
■■ Lucy Fitzgerald is a senior HR consultant with FitzgeraldHR, a human resources outsourcing company that offers retained or ad hoc services to organisations in need of HR support. tel: 01237 239 028 email: lucy@fitzgeraldhr.co.uk web: fitzgeraldhr.co.uk Twitter: @FitzgeraldHR
Business Action | business-action.co.uk
NETWORKING
Peer-to-peer networking: can it work for you?
Most networking is done because you need to get out there and promote your business and sell your products or services. It is part of your marketing mix, along with advertising, your web site, your Facebook page, newsletters, mailshots and How peer-to-peer other social networking can help media activity. ➤➤ Aim to share, not sell After all, ➤➤ Talk to specialists many people ➤➤ Contribute advice will tell you that ➤➤ Join a ‘boardroom’ word-of-mouth ➤➤ Take opportunities referrals are the best type and, as well as regular customer referrals, the feedback that you can get by regular networking is still all about word-of-mouth recommendations. What is peer-to-peer networking? For me though, peer-to-peer networking is very different. Why? It’s because the purpose behind talking to your peers isn’t to sell them your product or service, it is to ask them for help and guidance in how to run your business.
10
One person, many roles We all know that when running your own business, especially if you are a small business, you, the owner, the entrepreneur, seem to have to do everything: you are the managing director, finance director, marketing manager, head sales director and you are the chief tea maker and washer upper. If you could join a network where you could talk to someone who is an accountant, someone who specialises in sales, someone else who owns and runs their own business, someone who runs a marketing agency, then you can pick their brains and get support and, of course, you can pass on your good tips and advise others of the pitfalls that you have come across in return for the advice they are giving. It becomes a very valuable resource. There are many ways to go about this: there are mastermind groups, boardroom groups, small spin-offs from other networking groups, but they are hard to find. Power of boardroom groups I have been part of a boardroom group which started off with six members and ran for more * 11 Business Action | business-action.co.uk
COMPETITION
WIN A FREE LUNCH There’s no such thing as a free lunch except in our NDBA Business Action competition. We’re offering one free place at an NDBA end-of-month Friday networking lunch to the reader who posts the most entertaining ‘selfie’ featuring a printed copy of Business Action. Prize includes lunch, drink and coffee at the Chichester Arms, Bishop’s Tawton.
Post a Business Action selfie To enter, post your selfie on: Twitter – follow and tweet photo to @northdevon including the #ndevon hashtag Facebook page – like North Devon and post on timeline including #ndevon hashtag Google+ – join North Devon community and post selfie including the #ndevon hashtag 10 * than three years before the
dynamics and circumstances of the members changed such that the group closed. I learned a lot during that time, lots of stuff from my fellow members, and hopefully passed on plenty of my own knowledge as well. If you ever get the opportunity, I can recommend it. Don’t turn it down as the @businessactionm | Summer 2014
Entries must be posted by midnight on 15 September 2014. The judges’ decision is final and no correspondence will be entered into.
contribution to your business can be immense. ■■ NDBA is planning to start up and
run more boardroom groups in 2015. If you are interested in joining one of these groups (there will be a small fee per meeting to cover the cost of the meeting room, refreshments and extras) please email Kevin Woodward on kevin@ndba.org.uk
11
DIRECTORS
A new breed of non-exec
Martin Hawley of Boardcircle believes non-executive directors are not the sole preserve of large companies and that they can benefit SMEs considerably
In recent years a lot of attention has focused on large company boards, but it’s time that the shape of SME boards is re-thought. While many SMEs consider having an independent voice on their board, often they do not end up with one. The reasons are varied: they are not sure about the value added, the role non-execs play, and are put off by the stereotype that a non-exec should be a ‘retired senior manager’. Nevertheless, as companies grow they do take on non-execs, with acknowledged benefits. So is there a problem? Share non-execs Martin Hawley, founder of Boardcircle, believes that SMEs are ready for a new way of doing things and a new breed of nonexecutive. His solution is that companies should ‘share’ directors as nonexecs, to learn through doing and enhance the skills of both executive and board in the process. The key issues concern value added and talent. Spending up to 20k a year is a difficult ‘ask’
12
compared with other investment priorities. Secondly, what sort of person should fill the role? Luke Johnson, chairman of Risk Capital Partners and the former chairman of Channel 4 Television, has some clear advice: “Always recruit the hungry up-and-comer, never the grandee.” Hence good non-execs may be less like the ‘grandee’ and more like the executives who are quietly building businesses right now. Shaking up the market Boardcircle’s move to break out of conventional thinking and shake up the market reflects what good non-execs do best: stepping back, making observations and building strategy. What do boards want? The observation is that the talent is out there and is ‘hungry’, and that the needs of boards are simple: they want objective thinking and wider strategic skills to take their company to the next level. Where to look? In finding talent, the tendency has been to search far and wide, Business Action | business-action.co.uk
DIRECTORS
but look closer to home and you will see that it may exist in the directors and senior managers of other organisations just down the road. These people already have good executive experience, they just need to apply it in a different way. Moreover, many of them want to be non-execs. They are the ‘hungry up-and-comers’ who already have been seeking to build their experience as school governors and charity trustees. Sharing non-execs But the supply of non-execs is only half the equation, which led to Boardcircle’s insight that to increase demand we should lower the threshold for boards to take on non-execs. This is the essence of Boardcircle, which aims to harness the enthusiasm of a new generation of non-execs by helping companies effectively share directors as non-executives. Martin Hawley describes this as sharing, “because the non-execs are doing this voluntarily as the experience is more valuable to them in the long term than a topup of salary.” Platform for collaboration To get the optimal match between boards and prospective nonexecs, Boardcircle has developed @businessactionm | Summer 2014
a platform for collaboration that simplifies what would otherwise be a complex exchange of resources. There is still a human element to the service SMEs are ready for a new however. breed of non-executive Boardcircle’s ➤ ➤ Recruit the hungry Kath Amery up-and-comer describes this ➤➤ Talent is out there as critical in securing a good ➤➤ Look closer to home ➤➤ Share non-execs fit between boards and prospective non-execs. Boardcircle is aimed at SMEs, where the threshold of taking on a non-exec is comparatively higher. Clearly, larger SMEs do value non-execs, so helping more over this threshold is essential. ■■ Martin Hawley has spent most
of his career as a consultant in international air traffic management. He has a strong interest in business, which led him to pursue functional leadership positions in HR, business development and sales. Martin’s passion for business and collaboration led him to set up Boardcircle in 2013. His vision is for companies to help each other by sharing some of their directors’ time as non-executives. tel: 020 8144 7205 email: kath.amery@boardcircle.me web: boardcircle.me Twitter: @boardcircle
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WHAT’S YOUR POINT?
What is there to fear? Robert Zarywacz thinks some businesses no longer fearing the pressures of recession need to address a different fear . . . fear of success
The recession was undeniably tough for most businesses, but if you’re reading this, you’ve most likely made it through. An achievement just being here Anyone who was running a business before, or set up after, the recession hit has achieved far more than simply survive. Although there are still many problems in the economy, and concerns about the operation of vital sectors from banking to pensions persist, there are definite signs that things are becoming a little easier. In North Devon, visitors seem more inclined to spend money without thinking quite so much,
14
while many businesses have full order books. Confidence is growing. Take a breath and . . . ? It’s natural to breathe a sigh of relief, have a break, take it easy. But a business is like a car and won’t coast along running on air. It needs constant refuelling, regular maintenance and periodic tuning to ensure it runs efficiently and gives the best performance. In the recession, we eliminated the unnecessary, improved our processes, and, in North Devon, an impressive number of business invested for the future. Those businesses are now reaping the rewards of their Business Action | business-action.co.uk
WHAT’SHEADER YOUR POINT?
forward thinking and investment faith. These business ‘engines’ are fine-tuned and running at full speed unlike those which did nothing and now need attention to get back up and running. What happens when we relax? If we relax and take our eyes off business, how do we maintain peak performance? And if orders increase, how do we cope when we reach full capacity? During the recession, businesses feared not having orders. During the recovery, it’s possible to fear having too many orders. Success can create just as much fear. If we land a massive order, how will we handle it? Subcontract or employ more staff? Will we need bigger premises? Not really wanting our dream Many people dream about spectacular business success while simultaneously dreading it. Will we be up to it? Will we be out of our depth? Would it be safer to stay small? Life is easier and more comfortable when we limit our chances of achieving success. Building a thriving economy It’s clear from the immense hardships of the past six years that tremendous effort is required to rebuild our economy. If most businesses carry on @businessactionm | Summer 2014
as they are, then maybe we can simply make a living. If we want raise living standards for all, increase real wages for workers, create high quality jobs with good career prospects and achieve the full potential this area offers, I believe we have to address the widespread fear of success. Success versus survival When so many have been working hard to survive, it now requires a major shift in attitude to work for ‘growth’. Is that difficult? Look at successful businesses who are taking on new staff, moving to bigger premises, launching new products and services. How different are they to us? They are run by people just like you and me with dreams and fears, expertise and experience, along with weaknesses and bad habits that we all have. The difference is that they have taken action to achieve their dreams and address fears that could have held them back. We have to decide whether we are content for our businesses to coast along, perhaps never tackling the barriers that confine them, or to take the leap to achieve the success that previously we have only dared to dream about.
15
WHAT’S YOUR POINT?
Seek out supporters Can we really do the same? Yes. The first step in conquering our fear is to talk to others. When we worry about a problem, it can feel as though Address fear of success we’re the only ➤➤ Share your concerns person it affects, by talking with others but when we ➤➤ Find champions in your pluck up the network courage to talk ➤➤ Adopt a growth to others, often attitude we find we’re ➤➤ Just do it! just one of many encountering it. Find champions in your network whichever groups you belong to, and seek out those you can confide in for mutual support. Learn to fail Fear of failure is another common fear in business. What will we look like if we say we’re going to something and it doesn’t work out? Like anyone who falls flat on their faces, we must pick ourselves up, dust ourselves off, learn what did not work and try a different approach. Few businesses succeed without experiencing some failure, but they learn from the experience and improve. Thorough and effective planning are still essential, but we must free
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ourselves from any constraints we impose on ourselves due to fear. I have certainly experienced periods of being ‘stuck in a rut’ and needing to shake myself up by trying new approaches. Everyday business admin, accounts and management can easily stifle innovation, so it’s important to keep our ambitions alive. There is never a perfect time Another fear is that the time is not right. It’s easy to wait for the right time and put a project off, but we could wait forever for the perfect time. Providing we plan effectively and assess risks, if we want to grasp an opportunity, we have to act now. Wait and it’ll be gone, perhaps forever. Business Action If you want to develop, expand or start your business, I hope this gives you encouragement. Let us know how you get on. As our magazine title urges: take business action. You know you can do it. ■■ Do you have a point you would
like to make on any aspect of business? Use ‘What’s your point?’ in Business Action to air your views, ask questions or initiate change. Call 07971 176044 or email robertz@business-action.co.uk Business Action | business-action.co.uk
GENTS TAILORING
A bespoke service Garry Nicholls of Alexander Blake Bespoke Limited talks about his career in tailoring and his passion for providing a bespoke garment service
I first worked in menswear back in 1984 when George Davis created the template for the high street store Next. It was then that I discovered my love of fashion and tailoring and where I first trained staff how to measure clients. Later, I worked for Ravens of Southend – a fourth generation family-run business with a high end clientele. I sharpened my tailoring skills in their exclusive menswear department while helping to establish a busy high quality wedding hire department. In further roles, I have been an area manager with 350 staff as well as a consultant troubleshooting struggling stores. Alexander Blake Bespoke offers Savile Row quality without having to travel to London or pay London prices. Alexander Blake is delighted to offer a garment service based on traditional tailoring methods, using fine cloths and cottons sourced from around the world. A range of signature cloths woven exclusively for Alexander Blake is also available. Garments will be ready for final fitting within six to eight weeks. At Alexander Blake, we believe @businessactionm | Summer 2014
we are not just selling you a suit. I will discuss your requirements, advising you on the type of cloths, styles and options available to you, thus ensuring you receive a truly unique garment. Clients include professionals, young entrepreneurs and retired businessmen wanting tailored garments for every type of occasion. Alexander Blake’s base is in Mayfair, London and I am responsible for the South West. My grandfather was a chief cutter for Simpsons of Piccadilly and other Savile Row tailors. I have obviously inherited his love of tailoring and am inspired by the whole process from the consultation to final fitting. It is a thrill I still enjoy and feel privileged to work for Alexander Blake. tel: 07747 652549 email: garry@ alexanderblakebespoke.com web: alexanderblakebespoke.com
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BROADBAND
Why satellite broadband won’t work for everyone When looking to install faster rural broadband, Kevin Woodward discovered that there are more factors to consider than speed
Oh, I wish I had done further research. Getting fed up with slow broadband, a major problem for rural businesses, I looked very seriously into getting my own satellite and was drooling at getting speeds of 20 Mb/s download and up to 8 Mb/s upload speeds. I spoke to all and sundry about whether it would be a good idea, even some experts, and the general consensus was that it would be a good idea. Well, for me it wasn’t, and I have paid the price. Cost and contract Installation was £200 and the monthly contract is £50 per month for two years. I was going to pay for this by getting rid of my landline altogether (it was my fax line, but who sends faxes nowadays?) and also set up a wireless hook-up to
18
my house so that I could cancel the broadband there too. Over the two years I was going to save myself at least £300 and have superfast satellite broadband. Learning about latency too late Oh, I wish someone had told me about ‘latency’. Latency is the time that it takes for your signal to go to the website you are browsing or the computer you are working on. I regularly access computers in Canada as well as the UAE. These places are around 3-4,000 miles away and in general the reaction time is quite good, even for my slow rural broadband. But with a satellite that is over 21,000 miles up – six to seven times further away – that latency is six to seven times greater and, as someone said, it is like “walking through sticky soup to get things done”. I am so glad that I didn’t cancel Business Action | business-action.co.uk
my landline and home broadband immediately; I would have been tearing my hair out. So, this little experiment is costing me £50 per month for a satellite I cannot use for my business. Over two years that is a lot of money. Be broadband savvy Be careful out there. Make sure you really know why you need faster broadband before plunging in and signing up. @businessactionm | Summer 2014
Plea to BT Oh, one last thing: come on, BT. Please get your act together and let’s get some rural fibre optic cable sorted. ■■ Do you run a rural business that
experiences slow broadband? Is slow or no broadband holding your business back? Or do you have tips on how to get round this? Get in touch with Business Action to tell North Devon businesses.
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BUSINESS PLANNING
All your business needs on a single page James Hellyer of Accountancy Edge demonstrates how a one-page business plan can help improve your business
Most business owners want to be more successful. I’m sure you do. The difficult thing is working out how to make your business more successful – and then doing it. A lot of business consultants pay great heed to The McKinsey Maxim: “What you can measure you can manage.” But what should you measure? What information do you need to look at? Too many recipes for stress Some businesses make use of their accounting systems to produce lots of financial reports. Others have an accounting system that’s best described as non-existent, and only really know how much they have in the bank. Either way it’s a recipe for stress. If you have too much information, it can be difficult to tell what is and isn’t important. If you have no information at all, then you don’t have a chance. What you need is to identify what is important to your business, and present it in a format that can be easily understood and acted on.
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If you can achieve this, life should become less stressful and you’ll be in a better position to make decisions for you and your business. Management accounts are not enough Traditionally, businesses that rely on their accounting software produce management accounts to help them assess how they are doing. These typically comprise things like the monthly profit and loss accounts, balance sheet and cash-flow. Management accounts and comparisons to budgets may not give you the information you need. So you should also measure other Key Performance Indicators (KPIs) in order to really understand what is happening while there is still time to do something about it. For example, the only information a profit and loss account gives about sales is the total value of invoices raised in that period. Business Action | business-action.co.uk
BUSINESS PLANNING
Don’t look back Looking backwards like that may not help you understand what is happening now, or shape what will happen in the future. If you’re looking at sales, it’s much more useful to monitor KPIs such as: ➤➤ the
number of sales leads
➤➤ your
conversion rate from lead to sale
➤➤ the
size of your forward order book
It’s not surprising that large businesses monitor their KPIs as well as looking at budgets, forecasts and management accounts. In fact, a lot of the most successful businesses systematically identify and measure KPIs for the crucial area of their business. More can be less How can you make sure that monitoring your KPIs doesn’t just add to your information overload? How can you be certain that it will help? The solution is to identify just the most important drivers for your business and to condense them into a One Page Plan. As the name suggests, this condenses all the key numbers on to a single sheet of A4 paper. @businessactionm | Summer 2014
Suggested plan format Your plan might follow a format like this: ➤➤ Start
with the goals and vision you have for your business.
➤➤ Use
these goals to determine the key areas in which the business has to excel in order to achieve them. These are your underlying success drivers, such as customer satisfaction or the number of hours spent developing new products.
➤➤ Next
are the key factors that directly drive the business’s sales, costs and cash-flow. Ideally these should be lead indicators: numbers which will help you understand what will happen in the future. For example, you might monitor the number of referrals you receive from customers, or the conversion rate from lead to customer, or the number of customers who have bought from you a certain number of times that year. Setting targets for these is the first step towards monitoring them and then trying to find ways to hit the target your business needs to move forwards.
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BUSINESS PLANNING ➤➤ Last
of all, you would look at the key results that have been generated by all the underlying drivers: things like the value of business One Page Plan ➤➤ Look forward, not back generated, the ➤➤ Identify the most profit for the important drivers year, and cash at ➤➤ Map out causal links the bank. These ➤➤ Set KPIs to monitor key results are, ➤➤ Monitor and update of course, lag indicators. Approached like this, your One Page Plan will describe the key factors behind your business’s success, and then map out the causal links between goals, success drivers and eventual results, and help you set the KPIs to monitor it all. This gives you an early warning system by systematically measuring and monitoring
everything that is really important in your business, and it also acts as a catalyst for identifying the action that needs to be taken, and as a mechanism for recording, monitoring and updating your action plan. If you are worried that your business is operating in the dark, or you’re worried that you don’t know which pieces of information to rely on, now could be the right time for your business to take action and draw up its One Page Plan. ■■ James is an ICAEW Chartered Accountant who trained and qualified with KPMG and established his own firm of accountants because he thought being a good accountant was about far more than simply doing people’s accounts and tax returns. tel: 01237 421342 email: james@accountancy-edge.co.uk web: accountancy-edge.co.uk Twitter: @accountancyedge
Read magazine online If you enjoy reading this edition of Business Action, you can refer to the articles any time without carrying it with you. Visit business-action.co.uk to read the full magazine online on your computer, tablet or smartphone. You will also be able to access back issues. 22
Online at business-action.co.uk Business Action | business-action.co.uk
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Difficult conversations Rozz Algar, from Herne, explores ways in which businesses and individuals can develop skills and strategies to face tricky scenarios and situations head on
Have you ever had to have a conversation with someone that you know is going to be tricky? Can you think of a time when after the event you wished you had handled something better? Well, you aren’t alone. Having ‘difficult’ conversations is just a fact of life. Maybe it’s a supplier who hasn’t produced a piece of work to the specification you required, maybe it’s a member of staff who is consistently underperforming or maybe it’s a client quibbling over the bill. How we approach these situations, what we do and say will have a lasting impact so getting it right is critical. 24
Firstly, we need to ask ourselves: why are conversations difficult? Generally, because they fall into one of the following broad categories: ➤➤ You
are trying to get someone to do something they don’t want to do
➤➤ You
are going to tell something they don’t want to hear
➤➤ You
are going to have to tell someone how you feel
All these things come down to our emotions – how we feel, our concern of offending others, concerns about how our message will be received. But we need to Business Action | business-action.co.uk
MANAGING PEOPLE
put this to one side and focus on getting on with the conversation! When considering a difficult conversation, focus on the end point, the solution, rather than the conversation itself. A successful outcome is likely to be: ➤➤ Where
there is a win:win and both sides feel comfortable with the way forward
➤➤ Where
everyone feels listened to and understood
➤➤ Where
the relationship is enhanced as a result of it
So there are three simple steps: Step 1 – see their point of view And I mean really see it from their point of view: understand what their motivations and needs are. Suspend your needs. Try not to let your pre-set ‘filters’ get in the way. And develop an empathy for that person’s view point. Step 2 – Actively listen Active listening is more than just hearing the words; it is not passive, it is active. This means checking your understanding by asking questions, clarifying points that you don’t fully understand and reflecting back to the other person what has been said so they realise @businessactionm | Summer 2014
that you do understand what they are saying. Step 3 – Be flexible There is no point going into a difficult conversation with an entrenched view as it will become a game of verbal ping pong with nothing being achieved. It is likely that you are going to be asking the other person to change their view/standpoint but you have to be flexible and willing to change too. So to finalise in dealing with difficult conversations you have two options. You can either push someone to do something or pull them to. If you push someone, it is going to require you to be highly persuasive to get them to come around to your point of view If you pull someone, you understand their motivations and make it compelling for them. Pulling someone is much easier than pushing them, and results in higher levels of agreement, for a more sustained period.
■■ Rozz Algar is a highly successful and energetic executive with expertise in people management, organisational development and communications. tel: 01837 83111 email: rozz@herne.org.uk web: herne.org.uk Twitter: @HerneRozz
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A Dragon in North Devon: learn about School for Startups Doug Richard, School for Startups founder and original Dragon from BBC’s Dragon’s Den, will visit North Devon on Wednesday 6 September to give his top tips for starting a business and obtaining funding. In under two hours Doug will give insight into the questions you need to ask when starting or growing a business, the funding options that are out there for startups, while simultaneously giving a glimpse of the School for Startups course and what to expect over the six weeks. The workshop is being held at St John’s Community Centre, Barnstaple from 1pm to 2.30pm. 26
Following the success of the first cycle of training, the School for Startups South West Peninsula Programme is gearing up to repeat the course in October. It seeks the biggest and brightest ideas and businesses to benefit from the FREE six-week course, worth over £1000, to help start and fund new businesses. Applications are accepted on a rolling basis so apply now for the best chance of being accepted. The free course includes three full-day workshops, 1:1 sessions with a personal business advisor, access to useful resources and support for obtaining funding.
Visit: schoolforstartups.co.uk
Business Action | business-action.co.uk
Providing Practical Business Solutions A consulting business with a difference – we also breed llamas – we also believe in helping others less fortunate than ourselves! Providing 1-2-1 business support based around networking, self-help, mentoring as well as just plain hard work! With a management accounting background – one earned working in business – we can provide in-house consulting solutions in most areas of finance & administration. From board level to number crunching level, we can assist you and your businesses (and business systems) get to the next level. We operate on an informal level providing support both with you in person as well as ongoing away from your office. We also provide marketing support for companies – updating websites, organising mail shots as well as running Twitter accounts and Facebook pages – we don’t sell ourselves as being gurus but we are successful at it.
Call us to find out more!
Tel: 01237 451848 Email: kevin@kvassociates.co.uk Website: www.kvassociates.co.uk
ADVERTISE
Place your advert here We’re now preparing our autumn issue of Business Action and ready to accept your advertising orders. We’re offering a two-issue package of full-page A5 adverts in our autumn and winter editions.
Peer-to-peer networking Performance matters Win a FREE lunch
Freedom Project New breed of non-execs Managing difficult situations
business-action.co.uk | @businessactionm | Summer 2014
Business Action is aimed at and distributed in print to NDBA members and business owners across North Devon. The online version is available worldwide at business-action.co.uk
To secure your advert, call
07971 176044 NOW!
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Business Action | business-action.co.uk
SEEING SEEING RED RED
Technological ease turns to aaaarghhhhhs! How did we ever manage without technology? I mean, now I organise my life by popping an appointment into the calendar on my laptop, knowing that it will appear in my smartphone diary automatically. Well, as long as I make sure I’ve saved it properly. As I leave for the meeting, I check my phone to find no appointment, only 53 apps waiting to be updated. I ignore these and go to the document I created in the Cloud. Drat, no 3G signal (don’t even think of 4G). Is there a wifi hotspot nearby? I find a free connection and wait @businessactionm | Summer 2014
to connect to the Cloud, but the speed is . . . reverse. So now I don’t know if I’ve got the right time for the meeting and I can’t access the document I prepared. I call the person I think I’m meeting but my phone battery runs out. I forgot to charge it. If only I had written down the appointment on paper and printed out my document.
How did I manage before?
■■ Is there a topic that makes you see red? Email your rant to robertz@ business-action.co.uk. Once checked by our legal team, we may either publish it or book you on to an anger management course.
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NETWORKING
What is networking? Kevin Woodward, founder of NDBA, discusses the benefits and opportunities provided by business networking
Many years ago I was made redundant and made the bold move to up sticks from the Thames Valley and move 200 miles to North Devon. I’ve been here for nearly 12 years now, but in those early days it was important to get out there and network. We all network, whether we realise it or not, be it with work colleagues, with mates down the pub or at a sporting event, even at a family gathering, but moving into a new area, not knowing a soul, I knew it was important to get out there and network. After all, my plan was to work for myself and not be tied to the corporate world. What is networking? Definitions include: ➤➤ Networks
are people talking to each other to share ideas, information and resources.
➤➤ Networking
is the process of connecting people who can help each other meet their objectives – two most important skills – listening and communicating.
30
➤➤ Networking
involves creating opportunities through meeting people, making contacts and building strong relationships.
➤➤ Networking
is the power of co-operation.
➤➤ Networking
is about being natural, being yourself and using the essence of who you are to build long-term successful relationships with other people. The value of this is compounded as the network increases.
➤➤ Networking
is the passing along of information, ideas and contacts from one person to another and then possibly to more people.
➤➤ Networking
is a specific marketing tool that is very effective in getting the word out to people.
➤➤ A
network is a group of people with links to one another.
➤➤ Networking
process.
is a reciprocal Continued * 32
Business Action | business-action.co.uk
NETWORKING
30 * Continued
Where to start? From a business point of view, you don’t network in the pub, you don’t have colleagues, family might be a good place but it will not widen your network, so you have to look for networking events and groups around you. There are many networks, from your local chamber of commerce, local branch of the Federation of Small Business (FSB), various breakfast clubs, lunchtime clubs, Rotary clubs Networking tips: and there are ➤➤ Be prepared ➤➤ Set yourself objectives events run by organisations ➤➤ Arrive early such as North ➤➤ Be positive Devon+. ➤➤ Carry business cards All good places, ➤➤ Practise speaking with some suiting you better than others, and there is no reason why you shouldn’t try more than one organisation. Get involved I started by going along to the local FSB committee meeting, just to meet the committee members and to introduce myself. I left the meeting as the branch secretary and remained secretary for about three years. I actually got to help organise events, met some great people and
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some of these people are still in my network today. Be prepared I wasn’t very good at networking when I started. I wanted to meet people and tell them who I was and what I did, but didn’t really have any clear idea of how to go about it. I had never heard of an elevator speech (a 30-second opportunity to tell everyone in the room exactly that), but learned very quickly, and now I am pretty much prepared every time I leave the house just in case I do get stuck in that elevator with Sir Richard Branson or Lord Sugar. So what should I be doing to prepare myself? ➤➤ Be
prepared to listen – everyone else in the room is there for the same reason. For each person you tell about yourself, be prepared to listen to them.
➤➤ Set
yourself some objectives – what is it you want to achieve? You won’t sell at a networking event, so maybe you want a few leads and names to add to your newsletter mailing list, but do make sure you have some clear objectives.
➤➤ Arrive
early – if you are one of the first to arrive you can Business Action | business-action.co.uk
catch people as they come in. You can welcome them to the event and ask them what they do – far better than arriving late and find that everyone else is already talking to one another. ➤➤ Be
positive – be prepared to talk to strangers, join in conversations that have already started, talk to other people who look as if they don’t know where to start.
➤➤ Have
plenty of business cards – how else will people remember you when they have spoken to many other people? Your card
@businessactionm | Summer 2014
will prompt them and remind them about you. ➤➤ Have
that elevator speech ready – many events will ask everyone to make a quick 30-second introduction to the whole group – be ready to give that speech confidently.
My last piece of advice – just be yourself and enjoy the event.
■■ I’m Kevin Woodward, founder member of the North Devon Business Alliance. We meet for lunch on the last Friday of every month – check out our website for more information ndba.org.uk
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Business power tool Editor and communications specialist Robert Zarywacz thinks many businesses neglect one of the most powerful tools available to them
Technology has a major influence on how we communicate. I remember sending telexes in my first job, while faxes came and went, followed by email, SMS texts, tweets and now ‘posts’ on various online networks. Yet we still have the phone and paper. Oh, and yes, even though we use video conferencing, Skype and Google hangouts, many of us continue to meet face-to-face. Faster, easier and confused Technology makes many processes faster and easier – I remember producing bromide artwork for magazines and
34
brochures which was couriered to a printer when now I email artwork generated as a PDF from my laptop. Sadly, this has not resulted in all businesses mastering their communications. The fragmentation of activities created by multiple social media channels, blogging and video often creates a muddle. Whereas we used to talk about integrating marketing communications, many businesses now struggle to keep up with just one or two activities. Just look at all the abandoned blogs and out-of-date web sites. Business Action | business-action.co.uk
COMMUNICATING
Fear of technology I believe too many people are frightened by the technology, realising that they can’t master Twitter, Facebook, LinkedIn, blogging, YouTube, email marketing and everything else while running their business. To some extent, they’re right. No one can master them all and no one is an expert in everything. Neglecting the essential tool While many worry about how to cope with technology, others are seduced by it to such an extent that they forget all else, especially the most fundamental business tool we all possess: language. We can’t do anything in business without language. It is the essential business power tool. We use it to explain our business case to investors and lenders, to create motivational messages for employees and to persuade customers that they need to buy our products and services. From advertising the price of a packet of sweets to negotiating a multi-million pound export order, language powers all business. Talking the talk Forget technology for a moment. Anyone running a business has to be able to talk about it with enthusiasm and confidence. This means being able to explain @businessactionm | Summer 2014
clearly, simply and briefly what we do and what value this gives to our customers. We have to be ready to do this in any situation, from meeting a bank manager to taking a sales call or networking. It sounds easy, yet it can feel so difficult. Many people dread speaking, especially the idea of giving a one-minute elevator speech even to a small group. Even business leaders practise On a corporate training event at the start of my career with British Airways, I remember hearing that the then chief executive, Sir Colin Marshall, who was about to address us, was not a natural speaker and practised presenting in front of a mirror. As a naturally shy person, I took this to heart and practise speaking in private to this day, preferring to deliver speeches without notes so I sound interesting and appear energetic (occasionally even bursting into song). Now I relish public speaking and presenting, and you can too if you practise. It will bring a whole new dimension to your promotion that can impact all your marketing activities. Ready to talk Apart from conquering one of the biggest fears people have, you will
35
COMMUNICATING
be able to project your business voice confidently and effectively on demand, at any time. When a customer asks what you do, they will understand your well-rehearsed explanation. When a journalist calls you for specialist comment, Use language as a you will be business power tool able to speak ➤➤ Be prepared to answer authoritatively. what you do When the ➤➤ Develop a clear, simple chief executive and brief message officer of a major ➤➤ Use it every day corporation shows interest, you can give them convincing answers to their questions without thinking twice. Start with a simple message Start by developing a simple message you can use to answer the question: what do you do? Ask yourself: ➤➤ Who
do you work with?
➤➤ What
are their problems/needs?
➤➤ What
do you do for them?
➤➤ How
does this help them?
➤➤ What
benefit do they get?
Combine the answers to create a statement that explains your business in 10 to 15 seconds or between the floors as you take 36
that fictional elevator ride with a high-profile business leader. Keep it short: any longer than 15 seconds and your questioner’s eyes will glaze over. Develop your communications A 10-second statement will not generate a wave of sales enquiries on its own, but it will create a tool you can use every time you talk to someone that increases the number of people who know and understand your business and what you do. Once you have developed this memorable message, introduce it into all your marketing activities. Customers will hear and see it in more than one place and awareness of your business will grow steadily. Just the start This is just one example of how effective use of language can help your business. There are many more uses of this free, universally available business power tool.
■■ Robert Zarywacz is editor of Business Action and a partner of Zarywacz, specialising in online, print and spoken communication. He has written widely on business, communications and technology for business magazines and newspapers. Email: rob@z2z.com tel: 0333 0444 354 web: z2z.com Twitter: @robertz
Business Action | business-action.co.uk
o Ro
m
sk s
Meeting s, O
fďŹ c eS
Barnstaple Tel: 01271 828176 - Mob: 07968 404357 Email: amelia@barnstaple-workhub.co.uk
www.barnstaple-workhub.co.uk
o pace & H
e D t
COMMUNITY
No one to turn to? Freedom Centre cares Freedom Centre cares for those with no one to turn to and supports them in taking back responsibility for their lives. Businesses can help too
Everyone who lives in North Devon has something to offer our community. Sadly, for some, their opportunity to do so is limited by their circumstances or life situation. The Freedom Centre works with those in danger of falling through society’s safety Supporting freedom from net because of poverty and despair social or financial ➤➤ Night shelter disadvantage, ➤➤ Community hub helps them escape ➤➤ Specialist help the downward ➤➤ Employment support spiral of poverty ➤➤ Helps 900+ people and despair, and looks to see them set free to make their own unique contribution to the life of our local area. Night shelter and a lot more Set up by Freedom Church, and based in the Newport area of Barnstaple, the Freedom Centre reaches people across North Devon and Torridge. Perhaps best known for
38
the night shelter it operates through the winter months, the charity deals with far more than homelessness. “We never know who might come in, or what kind of situation we will need to deal with,” explains Rebecca Harris, Bridging The Gap project manager. “We often see people who are in poor mental or physical health, experiencing breakdown of family or other relationships, or desperate about how they can feed and clothe their children when they don’t have enough money. In extreme cases, some will have turned to drugs, alcohol, and even criminal behaviour.” Community hub Because of the complexity of these issues, Freedom has set up a community hub, a single point of contact where service users can find specialist help with housing, budgeting and debt, health promotion, use of IT, welfare benefits and finding work. This is in addition to the more Business Action | business-action.co.uk
Infrared heating panels Affordable and efficient electric heating Infrared warms the whole room, not just the air. Comfortable, long lasting warmth, using less energy and costing less money.
www.multiheat-infrared-heating.co.uk
immediate help it offers: a meal five days a week, shower, clothes store, laundry, fitness suite with qualified instructor, TV lounge and social space. There is no charge for any of these services. Getting back on your feet “People often come to us, hopeless, as a last resort,” says Deb Parsons, team leader in the day centre. “One example: a young woman was referred by the local council. She was sleeping on someone’s sofa following a relationship breakdown and a miscarriage. She had tried staying with her mum but it had not worked out,
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and without an address she was unable to see her children. She was very broken. “Through our housing projects we managed to place her in emergency temporary accommodation and she began coming in each day. We assisted her with benefits, became her c/o address, helped her register for social housing, created a new CV by identifying skills she demonstrated while caring for an elderly relative, and helped her apply for jobs. “She was really nervous when she had to phone about a job interview, and asked me to hold Business Action | business-action.co.uk
Need support as you reach the heights? From client magazines, PR and social media to corporate and employee communications, we can support you right to the top FREE one-hour discussion* of your business communication needs – face-to-face, by phone or Skype • one session per business. Offer valid to 31 December 2014
Call 0333
0444 354 Visit z2z.com Twitter @z2zine Z
A R
Y W A C
Z
ONLINE, PRINT & SPOKEN COMMUNICATION
COMMUNITY
her hand while she made the phone call. “We provided an outfit for her interview and a travel warrant. She got the job, and spent the next weekend with her children at her mum’s, after also being reconciled with her.” Helping 900+
Businesses can support people the Freedom Centre’s Freedom sees work in many ways: more than ➤➤ Collect food/clothing 900 different ➤➤ Recruit volunteers individuals in the ➤➤ Raise or donate money course of a year, ➤➤ Spread the word
and every one has a story. The charity depends on a mixture of grant funding, income from trading (it runs an eBay shop and a recycling business), commissioned services
such as the night shelter, and generous support from members of the public. How can businesses help? “We would love to build relationships with small businesses in the area,” says Jeremy Westcott, an NDBA member who is responsible for the charity’s communications. “Whether you can collect food or clothing, help recruit volunteers, raise or donate money, or simply help us become better known among your customers and contacts, we would very much like to hear from you.” Visit the charity’s website at freedomsocialprojects.org.uk or call Jeremy on 01271 321171. tel: 01271 321171 web: freedomsocialprojects.org.uk Twitter: @FreedomSocProj
North Devon networking To network with businesses from across North Devon face-to-face and online, join the NDBA: ➤➤ Friday
end-of-month lunches
➤➤ Blogging ➤➤ Business
on web site
Action magazine
➤➤ Online
forums and groups on LinkedIn, Google+ and Facebook
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Join now at ndba.org.uk Business Action | business-action.co.uk
braver Making businesses
n Braver with your brand. If you feel your brand is looking a bit stale, we can help.
At Herne we believe in helping our clients to be braver‌
Whether it’s deciding to expand the business offering, taking on more people, dealing with difficult customers or staffing issues, the most important thing you can do is to take action. We work closely with organisations to encourage them to take that step.
n Braver with your people. From recruitment to performance management, making brave decisions isn’t easy, let us help.
erne
n Braver with your organisation. Evaluating your business and ensuring it works as effectively as possible can be tough, we can help.
Making businesses braver
+44 (0)1837 83111
+44 (0)7866 387756
enquiries@herne.org.uk
www.herne.org.uk
MEMBER Q&A
Ask Gloria O’Connell
NDBA members share their experience by answering 10 questions. This issue Gloria O’Connell of Marsdens Cottage Holidays is in the hot seat
1. What was your first job? My first job was working on the till in Woolworths. I loved it as it enabled me to chat to people all day and get paid for it. 2. What is the best business advice you have ever received? Never ask someone to do a job that you wouldn’t do yourself. 3. What do you enjoy most about business? The diversity. Every day is different in the holiday business. Some days are more challenging than others, but we are so fortunate to live in a beautiful part of the country and I frequently find myself meeting a potential new owner in a place with fabulous sea or country views and I have to stop and take in the view and remind myself that this is the business that I work in every day and how lucky I am. 4. What technology could your business never be without? I don’t think we would be able to survive without the good old-fashioned telephone. Even in this age of computers and handheld devices, the good old telephone still provides the link
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to communicating with our customers. 5. Describe your management/ business style? I always try to manage democratically. That being said, there are times when you need to be more assertive and just make a decision, even if it is not the one viewed by the majority, as long as you can explain your reasons behind the decision-making process. 6. How do you go about personal development? I have a personal development plan which works for me personally and helps to keep me focused. I do however sometimes stray from that plan, but every so often I will re-evaluate it as my plan needs to coincide with the company business plan and this can change quite quickly so it is necessary not to get too complacent and embrace change when it happens. 7. Is there anything about yourself that you want to change? Yes I would like to be able to have a better work life balance when Business Action | business-action.co.uk
things get quieter in the business but I don’t foresee this happening any time soon. 8. Social media: yes or no? Which network do you prefer? Love it or hate it, social media is here to stay. It’s the voice of the people. I prefer LinkedIn for business networking but Facebook for obtaining and sending general information. 9. How do you wind down when not working? I’m always working! 10. Do you have a motto or favourite quotation? Yes. ‘There’s nowt as queer as folk” and it’s true!
@businessactionm | Summer 2014
■■ Marsdens Cottage Holidays is a
Devon-based company with over 40 years’ experience in letting holiday cottages. The company’s success is based on the simple premise that it offers great service and unrivalled experience to both owners and holidaymakers. The Braunton-based business has built a reputation for excellent service provided by a friendly, professional team, which knows the region and each cottage intimately. All Marsdens’ properties are VisitEngland assessed and this gives customer’s confidence when booking a property they haven’t seen before, online or over the phone. tel: 01271 818134 web: marsdens.co.uk Twitter: @MarsdensCottage
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NEXT ISSUE
In our autumn issue
n New NDBA web site n 2014 NDBA online awards n Accessibility n Courtesy in business n More from our columnists n NDBA member Q&A n Competition n And a lot more . . .
Available late September 46
Business Action | business-action.co.uk
North Devon Business Alliance the voice of North Devon business Join the NDBA For details of NDBA membership and to apply, please visit ndba.org.uk, call 0333 044 2038 or ask any of our members. Membership is £15 annually. You are welcome to attend our monthly lunches to find out more, although membership will give you full access to all benefits. Find us online
NDBA member benefits ‰ Establish relationships across North Devon ‰ Friendly and professional – no hard sell ‰ Inclusive community open to all ‰ Monthly face-to-face networking lunches ‰ Support with online networking on Twitter, Facebook, LinkedIn and Google+ ‰ Blogging opportunities ‰ Inclusion in online business directory ‰ Exposure in printed and online magazine
We believe the internet and social media offer North Devon businesses many benefits by enabling us to interact more effectively with businesses and customers everywhere. @northdevon on Twitter NDevonbusiness on Facebook
North Devon groups on LinkedIn and Facebook or visit our web site at
ndba.org.uk Look out for new web site and more member benefits this autumn