At CBS, strong customer relationships are at the very core of our business. Increased pressures on the bottom line however may mean that changes in procurement approaches are imposed from above.  This might mean, for example, the centralisation of purchasing or the introduction of competitive tendering requiring a minimum number of bids to be obtained (three to five not being uncommon).

Some clients may be compelled to move to e-tendering, where the tendering process is conducted entirely via the internet. This can offer potential benefits for the buying organisation in the form of cost savings and improved process efficiencies – but for the supplier, however, the time involved in e-bids can be considerable – and worse, an e-bid gives limited opportunity for you to present your company personality or values. The prospect of a last minute online showdown on price can then result in drastically reduced margins.

The important thing to remember though is that a shift in purchasing behaviours which could be viewed as a threat, may also open doors.  Organisations on your target list, who have previously been disinclined to change the status quo but whose budgets are now subject to review, are likely to widen their search for suppliers as a way of benchmarking value for money – giving you an opportunity to make a fresh approach.

Times are undoubtedly tough but it is important to stay focused. Rather than dwelling on the negative aspects of trading in the current climate, businesses need to remain primed at all times to identify and exploit all new opportunities as they arise.

Have you found any silver linings? Let me know your experiences in today’s trading environment.

Not all managers are born leaders however – and if employees are disenfranchised, very often the root cause lies at the top.  I’ve recently observed some staggering examples of mistreatment, resulting in resentment and unhappiness for the affected individual, with the potential to lead to eventual burnout due to stress and ill health.

So what makes a good leader and which are the traps to avoid?

The right fit

First of all, it’s important to create a good working environment.  Employers spend a lot of time and money in attracting the right people, so providing an incentive for them to stay makes good commercial sense.

Space to grow

A good leader provides meaningful work and allows staff the freedom to learn and develop their skills.  Failure to delegate and constant interference not only holds employees back but results in deep frustration when they can’t perform their job due to unreasonable restrictions.

Clear direction

It’s important to ensure that everyone is on board with the company’s mission and values, with a clear understanding of deliverables and targets.  Confusion can lead to dissatisfaction and disappointment on both sides.

Reward

Reward systems are important but it’s not all about money.  Recognising individual worth and allowing staff to extend themselves is equally important when it comes to happiness and job fulfillment.

Respect

Recession is no excuse to treat staff poorly.  Regard them as an asset rather than a replaceable commodity and they will still be with you when the market improves. You don’t want to get a reputation as a bad employer, especially in a local marketplace – and those that transgress may find themselves up against stiff competition or unable to find the right people.

As a leader, your job is to inspire and motivate your staff, particularly when times get tough.  Look at any successful business and you will find employees at the heart of it.

Anything to add? Let me know if you have further ideas or experience of good leadership.

Our young people are our future.  For those from less advantaged backgrounds, finding a way into work may actively improve quality of life.  And from an industry point of view, maintaining the recruitment pipeline by attracting new joiners is also vital to avoid skills shortages down the line.

Time to stand up and be counted

While the government has pledged more support for apprenticeships and vocational training, industry must also accept responsibility for encouraging the next generation.  Work placements and internships offer a valuable practical experience.  However, there exists a lively controversy over whether such placements should be paid or unpaid…

To pay or not to pay?

It has always been the case that those starting out in a trade are paid less, but with transport and accommodation costs soaring, it is only fair to provide a level of financial assistance to cover day to day expenses. Failure to do so may actually put off some students from applying – who may be the very future stars we should be encouraging.

The CIPD has proposed setting a minimum training wage of £2.50 an hour for all apprenticeships and internships.  Whilst every situation is individual, it is important the Government works with industry to establish clear and fair guidelines and to incentivise industry to do more.

It’s important also that companies who take on young people in this way should ensure adequate mentoring is in place, so that both sides derive value from the experience.

Reaping the benefits

Your investment of time and money is likely to be paid many times over and you will have the satisfaction of knowing that you are ensuring the right people with the right skills for your organization will be available when you need them.  Those companies who are seen to be proactive will also enhance their reputation as an employer, with more and more young people placing an increasing emphasis on working for companies with strong social values.

Helping the young is not only a duty and a privilege but can be intensely rewarding too. Working together, we can achieve so much more.

At CBS, we’ve been joined by a second year Interior Design undergraduate Charlotte Kent, in a highly successful summer work placement – see our News page on the website for more details.

Do share your own experiences – good and bad! – with work placement schemes.

Equal opportunities

We are led to believe that every effort is being made to level the playing field for small businesses in order to ensure they have a fair chance of winning such contracts.  However, it’s hard not to feel the odds are stacked against you when complicated tenders arrive with impossible deadlines, not to mention detailed Health and Safety, insurance and other documentary requirements.

Counting the cost

While there are clearly advantages to the tender process, not least the prospect of fair choice against an objective set of criteria, the reality is that the costs incurred – on both sides – may not be proportional to the value of the contract.

Part of the reason behind the continuing ambivalence towards tendering is the difficulty of identifying and quantifying the internal expenses associated with the process. What is certain is that the process requires an investment of time and money on both sides: the prospective client in preparing the tender documents for issue and the subsequent assessment and selection of supplier, and the supplier in responding to the tender.

Action is long overdue, and there are some immediate measures that can be taken on both sides to improve the situation.

Purchasers need to avoid excessive documentation which often calls for the same information in several places in different formats; purchasers should also ensure time frames for reply are reasonable.

For suppliers, the onerous task of responding to tenders can be streamlined by maintaining a central data bank for generic company information and proof of compliance/copies of certification. Equally, where resources are limited, it is important that the risk assessment process for a particular contract takes into account the chances of success. Prior involvement with the prospective client can be an advantage where reputation is a factor in the final selection.

Of course, showing value for money is important – but let’s find an easier way to prove it.

 Let me know if you’ve any tips on taking the pain out of tendering.

Increasingly companies are recruiting part time workers: working mothers, the semi retired, or younger people are all choosing to work on a part-time or temporary basis either to get experience when jobs are scarce or to leave time to pursue other ambitions. 

Flexible working and avoiding over-long hours can be a good thing. Workers may benefit from reduced stress and ill-health, while delivering improved productivity and quality of work.  For employers, managing more flexible working patterns can be a mixed bag. Coping with absences due to holiday cover, increased maternity (or paternity) leave, or other career commitments can put a strain on the business, leaving them under-resourced and faced with supply uncertainty at critical points.

On the other hand, a larger pool of short term contractors, temporary workers, and self employed homeworkers can help companies facing precarious trading conditions and rising overheads. Such flexibility benefits workers as well as providing vital short-term support for employers coping with key skills shortages or fluctuating demand patterns. Businesses should remember though that where customer service is an important element of delivery, it’s necessary to establish a sense of continuity and make all staff aware of company values – both in giving them security and ensuring a positive attitude.

Evidence supports the business case for adopting flexible working, both for improving individuals’ work-life balance as well as making a positive contribution that impacts directly on the bottom line.  It’s important though that on whatever basis they are working, all staff must share common business goals and aspirations – in our case, that’s means putting clients first.

What’s your experience as an employer or an employee? Is flexible working a boon or a headache?

In a highly competitive environment, it’s easy to be tempted to go all out to capture and keep new business.  But how far is too far and what do you need to bear in mind?

Make sure new business opportunities are right for you

One of the first rules of survival is to make sure that the type of business you accept and the terms are right for you and your clients.  Pursuing contracts which are not profitable benefits neither side, sometimes leading to financial risk for suppliers and poor service delivery for clients.

And of course, building strong client relationships is vital.  Whatever the theories expounded, the basics remain the same:

1. Take the time to listen to and really understand your client’s requirements.
2. Deliver what you promised when you promised.
3. Keep clients informed.

Make sure your staff fully understand and are on board with your service values – the point of sale/delivery experience can make or mar client relationships.

Be realistic about delivery

It’s important to be realistic when agreeing delivery dates.  Working to impossible deadlines places undue stress on staff and can lead to disappointment when schedules are not met.  Ensuring good service is a two-way process – clients also need to make sure they plan ahead sufficiently and take into account stated delivery timescales before placing an order.

Passing on price increases

The seemingly relentless cost increases in for example, raw materials and fuel, have added to the pressure on profit margins.  For suppliers, the critical question is – do you pass on the increases to your client or not?  And if so, to what extent?

How do you know if you have got it right?  If you are as close to your clients as you need to be, they will soon let you know!

The explosion in technology does have a downside, however.  Too much information can be as difficult as too little – and who hasn’t suffered from email ‘inbox’ fatigue?  Advances in technology mean we can all work faster and often makes us available 24/7, which may not bring the business advantage we may think.  Establishing deadlines is important but basing these on what is reasonable, rather than what technology allows, is crucial. Allowing extra time will generally bring better results all round, as well as reducing stress and anxiety on staff at all levels.

An often heard complaint nowadays is that the speed and ease of electronic communications has lead to a relaxation of grammatical and business standards.  In business, you should establish a few simple rules and a clear communications protocol to ensure you always present a professional image – but we should never underestimate the value of face to face and telephone communications in establishing and building relationships.  Your clients will feel more valued and staff less isolated.

We have to remember too that the evolving technology – from hefty desktop PCs, to a wider use of laptops and the increasing use of tablet technology – all have an impact on office design. Desking, seating and cabling all need to evolve as businesses adopt new technologies, to keep everyone comfortable, safe and productive.

The latest online phenomena has to be the social networking sites, now increasingly being colonized by business – and they can offer valuable channels for communicating with key audiences.  However, getting the most out of the medium is not a quick fix, and requires an understanding of how the tools and applications available can best be exploited for your business. Has your business benefited from using these tools?

So what are the secrets of business longevity?

During the last quarter century, the nature of the way we all interact and do business has of course changed dramatically – and how companies manage change is one of the key factors in determining their long term success.

The staggering advances in technology have had perhaps the most impact on the pace and complexity of business interactions. It’s hard to remember how we all functioned before PCs and the internet put the world at our fingertips. Working practices have changed dramatically too, with more women in the workplace, an increasing trend towards part-time and flexible working, and the notion of a job for life just a distant memory. 

In more recent years there has been an increased awareness in the business place of the importance of environmental and social responsibility and accountability. This has to be good for our world, our communities, our business and our staff morale, and CBS has embraced opportunities to ‘give back’ in our own local area with practical and financial support for a range of charitable and social projects.

But when it comes down to it, for service businesses such as our own, the thing that really makes the difference to business success and satisfaction is remembering that it’s all about relationships. People do business with people – and taking the time to understand your client’s requirements – to work sensitively as part of their team – is what really makes a difference.

Let me know your thoughts – would you turn the clock back if you could – or is business today better all round?

While this approach may bring in much-needed funds in the short term, it can be a distraction which leads to resources being stretched too thinly, and moves the company away from its long term goals.

Constant analysis, something we practice rigorously here at CBS, is the key to lasting success and ultimate survival. This means looking at every single prospective sale and asking yourself:

What likelihood is there of securing the business? What type of business will this bring us? What level of resources will be required? Does this represent the best fit for our organisation?

Unless the sale fits in with your organisation’s profile and experience, you may stand to lose more in time and resources than you might gain financially.

There’s no point in spending a huge amount of time preparing complicated, impersonal tendering documents for business that you have little or no chance of winning – or business that your company will struggle to complete successfully or profitably.

At CBS, our reputation has been achieved by concentrating on people and building relationships. This means working closely alongside internal teams and encouraging prospective buyers to visit our showroom in Ascot where they can evaluate how products and solutions can work for them. By maintaining a personal interface in the specification and sales process, there is much less risk of a mismatch between the purchaser’s needs and expectations and the end product. Only by working more closely together will clients and suppliers achieve true synergy and build stable, long term relationships.

Whatever you put in place, it’s going to take a pounding, so clearly has to be durable. But as well as the up-front material and installation cost, don’t forget to take ongoing cleaning and maintenance bills into consideration – some materials need specialist care. Your flooring needs to be safe of course – too many accidents at work are caused by slips and trips, and poorly maintained surfaces. Think about acoustic properties too. Flooring can help improve your workplace acoustics – or make things infinitely worse.

The best thing is that replacing tired old flooring is not such an upheaval as you might think! Often the very thought of moving workstations, storage and other office furniture, together with all the IT implications and general business disruption, is just too off-putting for many businesses – but the good news is that modern techniques mean flooring can be replaced virtually overnight – and without having to move a thing!

So don’t be floored by flooring. It may be necessary – but needn’t be boring. Today’s exciting choice of modern flooring materials and vibrant or traditional colours will provide an instant facelift for your workspaces.  Brighter surroundings create a more inspirational environment for your staff and draw them closer together, as well as leaving a favourable impression with your visitors.

If you want to hear more about flooring solutions from the experts, come and join us at our free Breakfast Seminar on 18 November, in Ascot. Just email trudy@cbs-plc.co.uk or call 01344 891010.