roundtable: TVBMA 41
Companies simply have to do all they can do to attract people to work for them, Yadegari explained, by providing a working environment that makes them select and prefer it over others.
Workplace culture and the need for ‘connectivity’
Deloitte’s Mike Thorne felt there were three key components to business success:
• Having the right people in your team
• A focus on quality performance and meeting customer needs
• Leadership. Having a strong management team that not only inspires employees but helps them deliver, with appropriate training and support. “If your leadership team is good, their spirit will cascade down throughout the company and will make things happen.”
Robin Barnes of RBS agreed: “Clearly a good senior team with a vision is required, but that vision needs to be communicated throughout the workforce, and sometimes when we visit less successful companies, that connectivity is missing.”
Murray suggested that mutual understanding was often at the heart of successful company cultures.
Barnes agreed but pointed out “…the larger an organisation gets, the harder it becomes to achieve that connectiveness.” He noted that some of the TVBMA winners had overcome culture dissemination problems by creating active sub-teams of 15-20 staff.
Christopher Avery of Pitmans exampled the need for strong leadership and belief in the ‘vision’ throughout the workforce. During the 1990s recession Pitmans adopted a growth strategy rather than entrenchment. “After three to five years we had grown much bigger than our opposition and established ourselves as the main corporate practice as well as the new commercial property practice. You have to feel you are the best, to become the best.”
That internal culture and philosophy had attracted talent "... which has stayed with us because we are a fun and interesting place to work. We also ‘home-grow’ many talented lawyers who can see excellent careers ahead of them with us. I still interview all the new partners coming in from other firms.”
Kevin Brewer
Liddle surprised the Roundtable by announcing that her current concern at Style Acre was in growing too large too soon. “We are growing very fast – in 2001 our turnover was £600,000, now it is £5.5m, and possibly moving to £7m next year – which is amazing. Because our business is all about people, my fear is that we may lose the things that are special, like knowing everyone that we support and those that support us. Such relationships really matter, and the challenge as we grow is to keep everyone focused and on-message.”
With such rapid growth, strong financial control was required, but it needed to be such that innovation and creativity was not stifled. “It is important to have a financial director who gets excited about what you do as a business, and doesn’t see their job as just managing the money.”
Lane, who is an FD, agreed. Within larger companies, it is also important to have a good blend of finance team skills. “As an FD, a top quality team is essential, which we have at Xtrac, so that you have the opportunity to take a step back and get involved in the forward planning, with its ability to influence the corporate strategic direction and ensure that customers and suppliers are properly treated – after all, without them we wouldn’t have a business.”
Robin Barnes THE BUSINESS MAGAZINE – THAMES VALLEY – FEBRUARY 2014
Poole: “Some people see finance as a separate technical aspect of a business, but it’s not. It’s still about having the right enthusiastic and
Maintaining employee involvement is a crucial part of a company’s culture, added Avery. Good communication and the chance to sample different office locations and experiences within the international scope of Pitmans work are important. Since 2009 Pitmans turnover has increased by 50%.
Looking after the pennies…
Alan Poole of James Cowper added that good financial management should be part of the quality performance culture within a successful business, and that was the case within the TVMBA winners. Each had adopted careful financial management to control but not quell entrepreneurial spirit during their overall growth story often from ‘one person with one idea’ through to the development of successful businesses.
THAMES VALLEY BUSINESS MAGAZINE AWARDS 2014
committed people doing the right things, just like the sales, legal or product teams – they should all be integrated parts of the business.”
Lane decried the non-ethical practice of larger businesses who sometimes extend payment terms to their suppliers… because they can. “We (Xtrac) work really hard with our suppliers to develop a partnership – and that includes honouring payment terms because in the long- run any other approach is of no help to anyone in relationship terms.”
Good financial management was actually a jigsaw or a balancing act of relationships between the business and its customers and suppliers, he suggested.
Adams said PHABRIX always paid its bills within 30 days or less. “Trust validates the way we work.” Operating at the leading edge, necessitated high involvement with R&D work, entrepreneurial individuals and small suppliers. With long lead times (2-3 years) on as yet unproven products, the need for very careful financial management was vital, she explained. Fortunately, the Government’s R&D tax credits and Patent Box scheme were supportive.
Pratt agreed: “For us it’s about managing relationships with our suppliers and customers alike which has meant that we have been able to agree extended credit terms with our suppliers and ensuring our customers adhere within reason to the agreed payment terms.”
Mehran Yadegari
Poole said poor cashflow can hit SMEs quicker and harder than most businesses. “It tends to centre on whether the product or service is mission critical. If it is, and you can turn it off, then your invoice gets paid."
OK, you are winners, but could you have done better?
Poole highlighted that almost all the winning businesses had not yet borrowed significantly
Continued overleaf ...
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