But running for the exit is wrong, owners then do the short-term things and switch off their people, etc…”


Taylor revealed that Redwood had worked on a 3-5 year exit strategy because that was considered the norm for IT companies at the time. Two directors have now retired, but “… the good thing was that they had a very clear view of how they could step off without affecting the business, which is what happened.”


Sykes: “That’s good succession management isn’t it?” He exampled other business owners he had seen who worked on a strict three-year-and-out strategy and for whom “those three tough years had been the unhappiest of their lives.”


Thomson: “If you are tied in to three years and the business needs you that much, then there is something fundamentally wrong.”


An MBO can be a fairly common exit route said Brookes, and if key staff know that is possibly on the horizon, and they can be allowed to buy shares or acquire share options in the business, such awareness can be useful in retaining key and valued employees.


Andrew Thonson


Sykes suggested the technological advance of contemplative computers, which will in future interact more naturally with the human brain, would underpin the value of Big Data by providing more relevant and useful answers. This new computing technology might even change the face of the sector with some “global behemoths becoming a shadow of their former selves”. He felt “. . . there has never been a better opportunity for SMEs to grow than over the next 3-5 years”.


Griffiths and Sykes both highlighted the dilemma of growth – the desire to retain the agile SME culture of creative and motivational drive provided by a team of around 50 people, while trying to meet increasing client demand and commercial opportunities.


Robin Barnes


Morrin reiterated that the objective of growing the business should involve a good management team below board level, in order to establish a solid foundation for the business and ensure consistency whatever management changes occurred within the organisation.


Griffiths said FISCAL actually had that: a B-Team (the Board) and an A-Team of nine managers who run the business operations. “That’s just good fundamental business practice. Getting from 50 to 100 staff has to be done through our operational team, for example.”


Poole suggested an exit should not be the motivator for growth. Building the business in the right way should lead to a potential exit being the outcome of that good planning. “Almost by accident you will make the business exit-ready by doing the right things.


”Think of making the business ready so that you can go off for a year on a yacht.”


What changes are coming down the track?


“Big Data” said Yadegari. “Utilising data in the most efficient manner will be a big challenge.” With businesses now able to gather masses of


THE BUSINESS MAGAZINE – THAMES VALLEY – JUNE 2015 Bryn Aldridge


Avery said Pitmans had overcome that to a large degree by embracing new technology and investing in the upgrading of its internal systems, enabling greater productivity for its clients. He also suggested there was ‘technological tardiness’ within parts of the professional services sector, and firms would lag behind at their peril or face potential loss of clients and sector consolidation.


Pasco highlighted technological growth and change too. Generation Y was one group but what about future generations? Already those children live in a different world, with digital mindsets. He conjectured whether psychometric assessments by Thomas International would have to go down a gamification route in future? On new hand-held devices?


Taylor mentioned the growing involvement of


data, there was a need to understand and use that data to “. . . provide service that hits the mark for people who are trying to engage with businesses”.


tvbma roundtable THAMES VALLEY


MAGAZINE


BUSINESS AWARDS 2015


Asian interests within the technology sector. Their technical knowledge and quality had improved in recent years and accordingly their global market share and influence. ‘Made in China’ hi tech was now a particular force in developed countries, Taylor said. “If you look at Britain and the US as trading nations, and then what China is doing – getting out there, investing, putting the hard work in, their advanced educational standards, and they are commercially keen.” Looking positively, Taylor ventured that the threat “. . . should keep us on our toes.”


Griffiths: “Are the Chinese that entrepreneurial? I think India is a bigger threat.”


Taylor suggested India was “mired in bureaucracy” which limited that threat. “We do still have an edge but things can change. Look at the transformation of the Japanese car industry from 40 years ago.”


Murray mentioned the European market and the potential business risk of the UK referendum on EU membership?


51


David Murray


Poole felt uncertainty was the major business concern, and the long period until the outcome was known.


Barnes noted that there was evidence of some businesses and foreign investors already ‘”dabbing the brakes” due to EU uncertainty.


There was general Roundtable agreement that the UK business mindset favoured staying in the EU.


Pasco and Taylor both highlighted the differences between different national markets and cultures within the EU, particularly with their varying economic stabilities. While English was a natural language of business, investing and staffing for those individual EU markets, perhaps with skilled native speakers, had to be carefully considered.


And soon the Roundtable discussion had come full circle as Barnes highlighted the need to recruit suitable talent: “…able people, friendly people with great personalities. That’s what I need for my business, and what I will continue to need most”.


www.businessmag.co.uk


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