18 business focus


Grant Thornton summit reveals ‘Agents of Growth’


What are the key agents that will help promote growth and turn our UK downturn into a sustained recovery? John Burbedge of The Business Magazine reports


Early this month, business leaders in the Thames Valley will be debating and exchanging ideas on that very question at a special Grant Thornton summit in Reading – and hopefully revealing the positive strategies that will be driving growth in the UK’s mid-market.


Grant Thornton UK LLP CEO Scott Barnes, as host, will introduce the summit’s keynote speaker Paddy Ashdown who will give his personal insight into the opportunities and challenges of UK growth.


Barnes will also highlight conclusions from Grant Thornton’s 'Agents of Growth' research conducted in partnership with the Centre for Economics and Business Research.


Urging attendees to get practical and turn analysis into action, Barnes hopes Grant Thornton’s nationwide summits will be “a catalyst enabling businesses across the UK to grow strategically, operationally, and financially.”


Facilitating the event will be BBC Breakfast business reporter Steph McGovern who will involve the audience with the views of an informed panel of political figures, Grant Thornton partners, and Thames Valley business leaders including Phil Smith, CEO, Cisco Systems and John O’Hanlon, CEO, Ridgeway Garages Newbury.


We’ll provide a full report in our next edition, but we managed to gain some more pre-summit thoughts on mid-market growth from Scott Barnes.


Have you three key messages for businesses aiming to grow?


Be agile: Business models are changing rapidly – for example retail and financial services. Stagnant domestic markets have forced many to look internationally or into different segments. Insightful choice of markets, agility and decisiveness will become core competences.


Know your client: Growth companies enhance margins by delivering real value to their clients. Gain a deeper understanding of your client’s business needs, and compete on value rather than price.


Be prudent about planning: Traditionally, organisations fail through over-stretching their working capital. Growth takes cash; it should be a key focus.


UK recovery has been slow. How about our future growth journey?


Structural market dislocations that led to the downturn have made our rebound more difficult. That said, recent UK economic indicators – such as the ICAEW Grant Thornton Business Confidence Monitor (BCM) – have largely pointed in a favourable direction. Longer-term growth will be


www.businessmag.co.uk


impacted by how the Government supports the dynamic mid-market companies that underpin UK commerce.


As a firm, we’ve made it our priority to provide a voice for this critical, yet often overlooked, segment of the market. Our ‘Agents of Growth’ research identified their productive potential and through our ‘Agents of Growth' summits, coupled with further in-depth research, we plan to encourage policy makers of all political leanings to fully appreciate the segment’s tangible contribution in supporting the recovery and Britain’s role in global business – and to respond appropriately and effectively.


What hurdles to growth should UK businesses expect?


There is no single hurdle, but many will be experiencing the challenges of entering new markets and managing changing supply chains. Skills to tackle these will be in demand and after some pay stagnation, anticipate a battle for talent to produce ‘growing pains’.


Speed of change means companies need their people to understand the business’s direction and objectives much more clearly – and act as necessary to deliver, not wait to be told what to do.


Is lack of funding or confidence the big concern for business growth?


We’re seeing banks releasing more money to viable businesses, so those with a strong proposition and realistic ambitions should be finding access to finance more straightforward now. Alternative financing methods are also providing more options for businesses.


There’s been a marked shift in optimism. Our most recent BCM showed the highest levels of business confidence since Q2 2010.


We live in a changing world. How are UK businesses being impacted by: a) Emerging economies such as the BRIC nations and international trade?


There’s certainly an opportunity and appetite for UK exports; however, economists are noting a cooling of growth in these (BRIC) markets, with attention shifting back towards more developed international markets.


b) Internet-led change in the online markets?


Multi-channel retailing is here, with many businesses now prioritising online channels over more traditional ‘bricks and mortar’. But, most businesses would benefit from taking a more holistic look at their supply chain, assessing how


THE BUSINESS MAGAZINE – THAMES VALLEY – NOVEMBER 2013


Scott Barnes, CEO, Grant Thornton LLP


the end-user customer truly values their sales channels, and quality of service.


c) Evolving workstyles, with greater flexibility, home-working, diversity?


Flexibility and adaptability are critical in gaining a competitive edge at the moment. That rule also applies to hiring and working practices – particularly as technological improvements and user-savvy continue to evolve.


How is Grant Thornton meeting its own desire to grow?


During the past five years, we’ve pursued a deliberate strategy of investing in our brand, and business areas where we could take market- leading positions, alongside reinforcing our core mid-market segment strengths.


We’ve seen a step-change in how the market responds to us and importantly, how we react to opportunities – taking a more cohesive, joined-up approach utilising our in-depth sector and service line expertise to unlock growth opportunities for our clients.


As economic confidence grows, we look positively towards the long-term future.”


In October, Grant Thornton UK LLP announced its fourth successive year of strong performance, with turnover up 13% to £471 million.


If you are the CEO or MD of a mid-size business in the Thames Valley region and interested in finding out more about the summits, contact: agentsofgrowth@uk.gt.com


Details: www.grant-thornton.co.uk


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