WLV KnowLEDge - Issue 02 by University of Wolverhampton

Contents Contents

Innovation & enterprise

A new dynamic It’s a changing world and we’ve all had to adapt to survive. In the UK, a shifting political scene and the ongoing struggle to achieve economic recovery have created a challenging climate in which to operate. During these times of uncertainty, traditional roles have altered and new relationships have been forged. The role of UK universities for example, often perceived by business as centres for elite scholarly pursuit, has changed beyond recognition. Increasingly, universities are acknowledged as having a much wider role to play in regional economies than just educating highly qualified young people. Attuned to business Whilst the University of Wolverhampton has had the needs of business on its radar for some time, in recent years this role has been crystallised in the form of its Innovation and Enterprise Strategy. Leading this Strategy is Professor Ian Oakes, Pro Vice-Chancellor Research and Enterprise, whose own experiences at the chalk face in the automotive industry give him a solid understanding of the pressures which impact on business. His aim to position the University as a driver for economic growth within the region is more than a vision; it’s grounded in the realities facing the region. Skill injection One such reality is the on-going drive to inject more higher level skills into the region’s workforce, which remains a priority. The region has considerable ground to make up, as Ian explains:

“If you look at the metrics by which respective regions across the country are measured in terms of their competitiveness, then the West Midlands is not faring very well. When you start to dig down beyond the headline factors, such as the output gap and productivity etc, many of the factors associated with competitiveness are related to the lack of high level skills in the workplace. “Here in the Black Country, we have fewer employees in companies with graduate level skills, and a lower percentage of the population have graduate level skills, so the University’s focus on innovation and enterprise is aiming to upskill workforces in the Black Country and the broader region.” However, many companies face a dilemma. Whilst they appreciate the benefits of investing in employee skills, accommodating periods in education for employees can be difficult, but Ian is clear about the need for companies to act: “As it becomes increasingly difficult for companies to compete with overseas low-cost economies it becomes vitally important for them to maintain competitive advantage and many businesses are now looking to the intellectual capital they have within their organisation. The University has a major role to play in helping them to do this.”

In this issue A new dynamic

Plastic fantastic

The role of universities in the regional economies

A step towards a sustainable plastic solution

Professor Ian Oakes

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New collaboration to boost next generation’s success

Raising the grey ceiling

Staying agile? It’s business critical

A recipe for success

Stanford and Wolverhampton Universities collaborate

Fit for business

Exporting Black Country expertise

Business start-up success

Tailor made treatments – the future of medicine

Rapid response

University of Wolverhampton and Institute of Directors partnership to support business students Reducing landfill

Reducing landfill

Exploring the impact of an ageing workforce

Plastic fantastic Arguably, the disposable nature of the plastic bag; more than any other consumer item; epitomises our throw-away culture. For decades we’ve treated thermoplastic packaging materials such as carrier bags as disposable commodities to be produced, consumed and thrown away in their billions.

In the UK alone, nearly 10 billion plastic carrier bags are distributed each year*; that’s about 400 per household. Consumers have come to rely on plastic bags, and it’s easy to see why. They are lightweight, strong and water-resistant, and it is these attractive properties which have secured their wide-spread use. Breaking entrenched consumer habits has been at the heart of initiatives from the Government and private sector, which were aimed at limiting consumer reliance on the ‘single use’ carrier bag. A number of leading supermarkets voluntarily pledged to reduce their carrier bag distribution by 50%**, whilst other retailers charge for their plastic bags. Offering alternatives, such as the ‘bag for life’ has also become common practice.

Whilst such initiatives have raised public awareness and helped reduce the numbers of bags distributed, consumer attitudes in the UK and other Western economies have been slow to change. Meanwhile, this product of modern convenience poses a growing problem for authorities at both local and national level, with the bulk of waste plastics headed for municipal landfill at an unsustainable rate. Long-term legacy Most plastic bags, being petroleumbased, rely on costly, dwindling supplies of fossil fuels for their production, leaving both businesses and consumers vulnerable to fluctuations in the price of crude oil. If this wasn’t reason enough to reduce their usage, there’s the environmental impact of plastic waste to consider. Nature isn’t equipped to deal with synthetic plastics.

Although we can’t accurately estimate rates of decomposition – thermoplastics simply haven’t been around for long enough to be certain – most scientists agree it’s likely to be a very, very long time indeed, with 100-500 years commonly quoted. Although it’s obvious that the accumulation of petrochemical plastic waste in the environment cannot continue at its current rate, we continue to bury the problem. In 2010, the decision by DEFRA not to enforce a landfill ban on items such as used plastics was met with relief by the plastics industry. According to the British Plastics Federation this is not due to a lack of will on the part of the industry, which it claims is keen to divert used plastics from landfill, but because the UK’s recycling and energy from waste capacity simply cannot keep pace with demand.

With no large-scale alternatives to landfill on offer, there is increasing pressure on the scientific community to provide a solution. One area of exploration is the potential to alter the composition of thermoplastic to hasten the decomposition of thermoplastic waste. A University of Wolverhampton team headed by Dr Iza Radecka has been looking at this in detail, and in particular, the potential for developing a natural, renewable and biocompatible bioplastic from bacteria. A bug in every bag Bugs could be the answer. For some time, professionals working in the polymer field have been aware of the potential of bacteria known to produce poly-hydroxyalkanoates (PHA) for the manufacture of biodegradable plastics. Iza’s own research specialises in PHAs as a replacement for many of the nonbiodegradable petrochemical derived plastics currently in use.

Although the initial cost attached to the production of these bioplastics has caused them to be neglected, growing environmental concerns have injected new urgency into research, as Iza explains: “There has been increased interest amongst the research community to investigate the potential applications for PHAs. This research could render shopping bags and other packaging material more effectively biodegradable, helping reduce its negative environmental impact. Through our research, we also hope to fully realise the other extraordinary abilities of certain bacteria to synthesise commercially useful and important biomaterials.”

Embracing change to remain competitive in the marketplace

How collaborative working can boost business performance * Department for Environment, Food and Rural Affairs (DEFRA), 2008 ** In December 2008, seven of Britain’s leading supermarkets pledged to cut the number of carrier bags distributed by the end of May 2009 by 50% (against 2006 levels).

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Universities share their expertise in mobile technologies

Improving employee health and wellbeing Ageing workforce

Ageing workforce

Raising the grey ceiling Gradually, the average age of the UK’s labour force has been increasing, with more employees opting to extend their working lives. In light of this trend, which has now been recognised with a change in employment legislation, should employers be doing more to realise the full potential of their mature employees? Since April 2011, most employers can no longer impose a compulsory retirement age of 65, allowing older employees to remain in work for longer should they choose to. Mature and experienced employees have a great deal to offer the workplace. However, recognising that the training needs and motivations of older employees may differ from other sections of the workforce is crucial to unlocking latent talent. Older and wiser For those sectors facing skilled labour shortages, brought about by the generation of baby boomers who took early retirement and a shortage of skilled graduates to replace them, the new legislation is well timed. The ability to extend the careers of knowledgeable and experienced workers is likely to be helpful to many companies explains Simon Brandwood, Head of Careers and Employment Services at the University of Wolverhampton: “The change in legislation removing the compulsory retirement age gives industry the opportunity to retain years of experience and skills. Knowledge, especially industry specific knowledge, is a key competitive advantage that until recently left the company with the employee reaching the age of 65.” Refreshing skills Whilst the retention of high levels of work experience is good for productivity, the skills of older workers are more likely to

date back to knowledge they acquired before entry to the labour market, or in the early stages of their careers. Reliance on outdated skills could impact upon innovation and productivity, so employers need to consider ways of maintaining the relevance of the skills of older workers. As the average age of employees rises, the mature workforce more than ever will be called upon to meet new and emerging skill needs, and therefore the development and advancement of employees who are nearing or beyond normal retirement age should not be neglected. For Simon Brandwood, meeting the training and education needs of knowledgeable and skilled professionals is crucial: “Skill shortages are ever apparent, especially in engineering. The removal of a compulsory retirement age allows companies to invest in their employees, meaning the development of the individual and company alike.” Teaching an old dog new tricks In the past, training for employees nearing retirement may have represented a poorer return on training investment for employers. Likewise, for older employees the incentives to train in terms of higher wages or improved job opportunities decrease as the period in which they can realise these benefits becomes shorter. Now that working lives are extending, there is greater impetus on employer and employee to ensure that the employability and progression of older workers is maintained through relevant training and education. The shift in the age structure of the workforce is an opportunity for employers to review their current training practices to ensure that the skills of older workers are kept up-to-date, enabling both employer to and employee to benefit. For instance, employers may need to look at ways of making training and its mode of delivery more attractive to their older employees.

The University of Wolverhampton works with employers to develop suitable training provision. Flexibility is crucial, says Simon Brandwood:

Supporting under-developed communities

“Providing modes of delivery which minimise disruption to work routines such as on-the-job training, short courses or modular courses has become increasingly important. The costs attached to these are also likely to be recovered more quickly by employers and employees.” Passing on the knowledge Employers should recognise that the career motivations of older employees may have changed over time. Workers at the latter stages of their working lives may be less career driven, and possibly seek roles with reduced levels of stress and responsibility. Utilising the substantial skills these employees can bring to your business in ‘softer roles’ makes good sense. Mature employees are particularly well suited to mentoring or coaching roles, both formal and informal. Older workers have a great deal to offer organisations in terms of the knowledge and experience they can pass to younger employees. These contributions can add value to business performance and ideally should be supported with relevant training and development to help them perform these roles effectively. The ageing of the labour force has proved to be more than a passing phenomenon; it’s a business reality. Employers would be wise to adapt their practices in order to get the most from their mature workforce. Those who do so, are likely to realise the greatest benefits for their business. Wolverhampton Business Solutions Centre 01902 321272 enquiries@wolverhamptonbsc.com www.wlv.ac.uk/knowledge

Graduates grasping the opportunity to set up their own business

New screening techniques improving diagnosis

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How expertise in rapid manufacturing may help Britain stay ahead

Business change

Health and wellbeing

Staying agile? It’s business critical The latest figures from the Department for Business, Innovation and Skills (BIS) show that there are around 4.5 million UK private sector enterprises in the UK, employing 22.5 million people and turning over a combined £3,200bn. Pretty impressive numbers and something that Business Minister, Mark Prisk describes as evidence of the “resilience of British business”. In a bid to protect themselves from the economic downturn of recent years, all businesses have had to make significant changes as well as some very tough decisions along the way. While luck and timing plays a large part in a business’s resilience to recession, it is the choices and changes that businesses make which sees some survive while others unfortunately fail. The severity of the funding crisis that has accompanied the global downturn has seen this recession claim some very good businesses as casualties. Despite a clear strategy and effective management, even companies which were highly geared at the time of the credit crunch have had the rug pulled from beneath them due to the nature and timing of the crisis.

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SPEEDing ahead

The Student Placements for Entrepreneurs in Education West Midlands (SPEED WM) project helps entrepreneurial students to set up their own businesses whilst they are studying. Successful candidates receive experienced mentoring support, tailored training, networking opportunities, access to incubation space and a small amount of financial support. Those organisations that have fared well – and even grown – in the last few years have done so because they have ensured they are fit for purpose in the context of the current market. They also have a keen eye on how they might need to adapt to tomorrow’s market. Dr Anthea Gregory, Dean of the University of Wolverhampton Business School, explains; “By their very nature, businesses are not entities that can afford to stand still. There is no blue print for success that can be captured and applied by all businesses. The magic formula is always changing and it’s those businesses that are fleet of foot, constantly adapting to market conditions that survive and even thrive in a depressed economy. The most important feature that successful businesses share is their ability to adapt and stay one step ahead of future challenges.” In May, Business Secretary, Vince Cable issued a warning to businesses of the risks that lie ahead for the UK economy. Despite this uncertain backdrop, a report from BIS shows that new businesses are on the rise, with an increase of 48,000 start-ups in 2010 on the previous year. With fears that the worst may be yet to come for some, these figures may seem surprising.

Dr Gregory comments: “We have to acknowledge the fact that start-ups are often the by-product of recession as people are made redundant and forced to go it alone in the absence of alternative employment. It’s important for the health of the overall economy that as many of these new enterprises survive.

Peter Richards, Managing Director, Armstrong UEN Ltd.

During times of recession, among the redundancies there is often a corresponding increase in the number of new business startups, with many people turning unemployment into an opportunity to become self employed or realise a dream to start their own business. Small businesses are an essential part of the British economy – paying tax, National Insurance and VAT and contributing more than 49% of the UK turnover. 22.8 million people work in small and medium-sized firms – accounting for more than 59.8% of the private sector workforce.*

Fit for business

“History shows us that the longer a business is established, the more likely it is to flourish. However, longevity is no guarantee for survival as the victims of this recession have shown us. It’s important however that fledgling businesses get their house in order from the beginning. The basics, such as a sound business plan and tight cash flow management are critical to navigating the early years in business.”

Professor Laura Serrant Green, is well placed to observe the trends affecting both the health and business sectors. As Director of Research and Enterprise at the School of Health and Wellbeing, she’s witnessed the growing synergy which exists between traditional patient care and employer care.

The message to business is clear – staying agile is business critical. It also has a direct impact on the wider economy. The ‘fitness’ of all 4.5 million companies in the UK will greatly affect the pace of recovery.

Employers are now encouraged to consider the welfare of their workforce not only in terms of their health and safety, which is a legal obligation, but also in promoting better lifestyle and wellbeing practices within the workplace. It’s a shift in emphasis that Laura partly attributes to changes that have occurred across the NHS:

Wolverhampton Business Solutions Centre 01902 321272 enquiries@wolverhamptonbsc.com www.wlv.ac.uk/knowledge

“In the UK, we are extremely fortunate to have the NHS as the main provider of healthcare. Increasingly though, not everything we now require in relation to

Dr Anthea Gregory

SPEEDing ahead

Business start-up success

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health and wellbeing can be provided by the NHS, and the private sector will grow to fill the gap.” This is likely to result in more private and voluntary providers of healthrelated services springing up, so we can anticipate some healthy growth in the sector. For employers in general, it means taking on increasing responsibility for the health of their staff. When you consider recent statistics for work-related ill health, this seems a logical step. With so much of the working population’s time spent at work, the potential for it to impact upon physical and mental wellbeing cannot be dismissed. Taking care of business Through her role in the Centre for Health and Social Care Improvement, Laura is conscious that the input of healthcare

professionals is now being sought by companies on every aspect of business operations in order to achieve a healthier workforce and workplace. “Clients call upon our expertise around a whole range of issues within health and wellbeing which crosses education, training, consultancy, expert input into health and safety, service improvement and project management. We also have people within the School who have experience in particular sectors, so it might be around workforce development, psychological and mental health, building capacity and capability – so there are a lot of transferable skills that businesses can tap into.

Professor Laura Serrant Green

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The importance of small businesses on the economy should not be underestimated. There are several agencies and schemes in the West Midlands and Black Country aimed at helping young people to fulfil their business aspirations. Many provide examples of success that make welcome reading, and help inspire the next generation of entrepreneurs to give running their own company a go, particularly in the region’s traditional manufacturing and engineering sectors. Encouraging this new talent to stay in the region is vital for ensuring innovation and expertise for the future.

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Graduate entrepreneur SPEEDing ahead Peter Richards, took advantage of the SPEED programme to start up his first business whilst at the University of Wolverhampton with only £1,200 in savings and a slice of his student loan. He graduated in 2009 with a BEng (Hons) Mechanical Engineering and is currently running Armstrong UEN Ltd, which manufactures CNC milling and cutting machines. We asked Peter about his motivation, career to date, and future plans. “Since I was small I have been interested in how things work. I was always taking things apart and putting them back together – manufacturing my own things from scratch: radio controlled cars, rockets and parts. I have always wanted to manufacture things and been fascinated about business. Working for someone else is something that I wouldn’t like to do; I will always be working for myself or for my own company creating something new.” Peter’s studies expanded upon his interest in engineering, and provided the opportunity to be part of the wider engineering community. They allowed him to gain recognition as an engineer through carrying out research projects and investigations into engineering problems. By developing his understanding of advanced manufacturing techniques

Peter was able to identify possibilities for new parts and products – an essential aspect of offering better products than the competition. Being at University also provided Peter with access to the SPEED programme. “The SPEED programme helped me realise my aspirations by giving me the knowledge, understanding, advice and confidence I needed to start my business whilst at University. The early decisions I made with my business were the right ones – such as to start a Limited Company. I received tax advice and help with employing my first employee.”

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Create a plan – so you know exactly where you should be and what you should be doing.

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Work out what your products are, who your customers are, and how you are going to get those customers to buy from you.

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Learn everything possible about your business area – the more you can do this, the easier running a business will be and the more your customers will notice.

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Raise as much money as you can – and spend the money wisely.

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Be cautious, but don’t be afraid to ask questions or speak up for yourself.

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Don’t give up if it fails or doesn’t work out as well as you had hoped: it can be very easy to lose all your money very quickly without ever really knowing why. Learn from your mistakes and move on to something better.

Wolverhampton Business Solutions Centre 01902 321272 enquiries@wolverhamptonbsc.com www.wlv.ac.uk/knowledge

“Of course there have been risks involved – to secure a contract for some engineering design work I needed to purchase some expensive engineering software and borrow a small amount of money from the bank. This took some persuading, but about six months later I had paid the money back which was a great relief.” Peter is justifiably proud of his achievements, some of which would appear quite humble – such as taking on an office, or gaining ISO 9001 accreditation for his company. However, a true entrepreneur, he continues to look to the future. “What drives me the most is that I am doing something that (although there are a lot of risks and sleepless nights) I am proud of. Creating something new and interesting, producing great innovative products, employing high numbers of people, and being a recognised brand/ company in the markets we enter continues to motivate me.” Having experienced many of the challenges that starting up a business can bring; and successfully conquered them; what advice would Peter give to fellow entrepreneurs? *Small and Medium-sized Enterprise (SME) Statistics for the UK and Regions 2009, Oct 2010

Assembly CNC machine