Wandering bankers, Virgins, corks, Minis and Hydras

Last week I was at meeting of Prince’s Trust volunteers. We were joined by a couple of bankers from one of the Trust’s major supporters, Royal Bank of Scotland/Nat West. Chatting over lunch they explained that they were trying to get out of the office more to visit clients. We had a brief discussion about the merits of ‘wandering about’. I commented that meeting and talking to people helps us all to understand issues better and it also helps to dispel commonly held stereotypical prejudices. Yes, despite recent bad publicity, bankers are not necessarily two headed Hydras! *

MBWB (Management By Wandering About) is practised by many successful business leaders. It is how they get to find out what is happening at grass roots level without the information being sanitised as it is passed up through the corporate hierarchy. It allows them to stay in touch with the front line. My friend Trevor Gay encountered a wonderful example of this recently when travelling on a Virgin train. He was talking to the buffet car attendant and playfully suggested that maybe it was a myth that Richard Branson made a point of talking to his staff. But no, apparently Sir Richard often travels by train and stops by for a coffee and a chat and apparently is much more approachable than the middle management.

That story in itself is illuminating. It often seems to be the case that enlightenment at the top doesn’t necessarily filter down through the management layers. Maybe there needs to be a corporate instruction that all managers must walk so many miles each day, and of course, stop to talk to different people on each walk. However, even this would need care in itself lest there be a perception that management have nothing much to do other than wander round chatting to people! Who said that management was easy!

In my 1st August Ramble I talked about change and how some products become obsolete because of new ideas or technology. Recently in France I had cause to ponder this again while sitting in the sun sipping a glass of wine. In the UK, more and more wine bottles are closed off with screw caps. Gradually the misplaced view that screw caps are only for cheap wine is being overcome. However, my research in French supermarkets suggests that the screw cap is non-existent there. Fortunately at least synthetic cork is increasingly replacing the natural product.

I have seen estimates of between 1 in 12 and 1 in 7 bottles where the wine has been spoiled by taint or other problems caused by the cork. Changing to synthetic material eliminates that problem but of course, a corkscrew is still required, and indeed, plastic corks can be very resistant to removal from the bottle. The obvious answer is the screw cap which requires no special tools to remove it and seals the bottle perfectly.

Unfortunately there are vested financial interests involved. Firstly the cork industry would be dramatically hit, and secondly, investment in corking machines would be written off and significant new investment required in screw cap machinery. In recent years the major cork producers have developed processes which are claimed to eliminate or reduce the problem of the wine being damaged by its closure.

From a consumer point of view there is only one sensible solution for closing wine bottles. The screw cap. It seals perfectly and is easy to remove. I am sure that there were similar debates and vested interests when the first calculators arrived to replace the slide rule or the word processor/PC took over from the typewriter. Replacing manual typewriters with electric ones was never going to be a successful approach in the face of the new technology.

Of course, some markets are more conservative than others. I have come across exactly the same bottle of wine in the UK and in Spain. In the UK it had a screw cap, in Spain a cork. Spain like France is more conservative than the UK. Different markets see things differently.

At one point in my motor industry career my responsibilities included the Mini – the original, not the overblown BMW version. Until we repositioned it to a more upmarket position, in the UK it was seen as cheap and cheerful transport. However, in France it was the height of Parisian chic for affluent middle class ladies. In Germany it was mainly the sporty Cooper version that was sold and in Japan things were taken to a different level. Here it was history, nostalgia, call it what you will, that the buyer craved. Indeed many had their brand new Minis stripped down and repainted in 60’s colours, then rebuilt with original style lights and other components.

Fundamentally the same product but viewed entirely differently in four different countries. These variations in perception and attitude present an intriguing challenge for product and marketing people and demonstrate the need to really understand the customer in each of your markets. Wandering about talking to customers as well as employees is highly recommended!

* Hydra update! Having checked on this Greek mythological monster I find that it actually had nine heads, but if you cut one off two new ones grew!

David Wike

French elves, foreigners do queue, spinning names

My thanks to Trevor Gay for Rambling in my absence collecting material for the next couple of weeks wandering around the business world.

‘Elf and safety mate’ increasingly seems to be the reason that we are expected to accept that something isn’t possible when common sense would suggest otherwise. Of course, how the H&S legislation is written and how individuals or local authorities and other bodies choose to interpret it may well be two very different things.

In many cases it appears to be used as a ‘cop out’ to avoid taking responsibility or any kind of risk. This isn’t entirely unexpected in the increasingly litigious society in which we live. It is interesting to note that the same approach does not appear to exist just 22 miles south of Dover. Uneven pavements, potholes, missing manhole covers and other hazards are still manifest in La Belle France. I just have this feeling that turning up at the local council to complain about an injury sustained as a result of such an obstacle would be greeted with ‘désolé’ (sorry) and a shrug of the shoulders. Any suggestion of further action would probably draw a puzzled look.

Whilst there I witnessed workmen renovating the exterior of a house. Scaffolding had been erected but the working area comprised single planks without any guard rails to prevent gravity from taking over in the event of a misplaced foot, or indeed anything else from falling onto the heads of passers-by.

I know not the H&S legislation in France but I would have thought that a bit more concern for life and limb would not have gone amiss. But there again, maybe it was a simple case of ignoring safety for reasons of expediency. Britain has very tough laws on Health & Safety but nevertheless there has been a 28% increase in the number of deaths on building sites over the past year. Now Work and Pensions Secretary Peter Hain has stepped in to address the issue. Talking to the BBC he said, "77 people were killed last year and it was a big jump by over a quarter on the deaths the previous year. This is not acceptable and I am bringing together the industry, the Health and Safety Executive, governments, together with the trade unions to agree on a new action plan making sure that health and safety on all building sites is paramount. "

The impatience of French drivers is well known. They appear to have a pathological need to overtake even if it is complete lunacy to attempt the manoeuvre. Strangely, if they fail to kill themselves on the way to the supermarket, they will then stand patiently in a long queue at the checkout before resuming their suicide bid on the way home. If Tesco, Sainsbury’s or any other major supermarket only opened a couple of checkouts, hence guaranteeing a ten minute wait in line, there would be major complaints. The French seem to find this lack of customer care quite acceptable. I suppose that it’s because they have become used to spending 20 minutes in the post office or half an hour in the butcher’s while those being served socialise with those doing the serving. Indeed one boulangerie (baker’s) visited even had a sofa and rack of newspapers – now that is good customer care!

In the 15th August Ramble I discussed spin, prompted by a comment the previous week from Andy Scott of FiRST Marketing. Perhaps Andy has been offering a bit of marketing advice to the French authorities. Looking at my Michelin map I decided that we were in the Drôme Département of the Rhône-Alpes region. But the road signs, while agreeing that we were in the Drôme, claimed that it was Provence. The cynic in me couldn’t help but wonder whether some French marketing man had suggested that Provence was a more evocative label than Rhône-Alpes. If anyone knows differently I would be pleased to hear the explanation.

A bientôt,

David Wike

Manchester United, Tony Benn, Honesty, Integrity and The New World of Work

Guest Rambler Trevor Gay

I am delighted and honoured that David asked me to pen some thoughts on ‘Random Ramblings’ and I was asked by him not to mention either my beloved Manchester United or my great political hero Tony Benn.

Having already broken my word as a gentleman and a scholar I will carry on.

As you can see honesty and integrity have always been two of my greatest principles but as Groucho Marx once said; ‘Those are my principles … and if you don’t like them …. I have some more.’

David and I agree on some things about management and leadership and we disagree on others – that is normal and confirms the rich variety of thoughts and opinions that exist about the world of work.

One thing David and I share a passion for is the ‘new world’ of work.

I thought I would therefore use ‘Random Ramblings’ to reflect briefly about the changes I see in my ‘new world of work’ as a self employed, freelance and independent consultant versus my ‘old world of work’ in a traditional management structure in the National Health Service where I spent working from age 16 to 52.

I have been working in my ‘new world of work for almost 3 years.

Then – I had a boss
Now – I am my own boss

Then – Had set duties whether or not I liked them
Now – Only do work I enjoy

Then – Had set hours
Now – Work whenever I like

Then – Judged by bosses
Now – Judged by customers

Then – De-motivated, bored, tired and stale
Now – Enthusiastic, passionate keen to make a difference

Then – Uncertain about my future
Now – Looking forward to being 110 years old

Then - Unhappy in my work
Now – Totally content in my work

Another huge issue is that I used to receive a healthy monthly salary that was guaranteed for me for another 12 years in the NHS if I had stayed.

Now I have no guarantee whatsoever of income each month and yet I love my new world of work much more than my old world of work.

Since I left the NHS I have received income from work every month and I have no regrets about leaving an 'apparent comfort blanket' of secure employment.

That 'blanket' was not comfortable at all I assure you.

If you are fed up and wondering whether to jump from corporate life I would never be as arrogant as to ‘tell’ anyone to go for it. It must of course be your decision.

I would only say that it worked for me and the reality was far less threatening than my fears about it before I made the jump.

My biggest single learning point - Have OPTIMISM, ENTHUSIASM and most of all have FAITH in your own ability – you will be ok.

Trevor Gay

Bikes, business and bloomin' customers!

A recently published transport survey highlighted the lack of co-ordination between bus and train timetables and the general difficulty in many instances of getting to a station. One issue mentioned was the lack of secure cycle parking at stations. In my 15th August Ramble I talked about the UK’s outdated infrastructure and in particular, compared Birmingham’s transport system unfavourably with Barcelona’s.

My Barcelona ‘branch office’, aka my daughter Anna, tells me that the city has now taken another step forward in it’s transport integration. There is a scheme whereby you can hire a bike for a short period in the city. When you register for the scheme you have to provide your bank details. You are then given a bike scheme card which you insert into a meter at the various bike parking locations. This releases the bike from its locking system. When you arrive at your destination you relock the bike and are charged for the time that you have used. At the moment the scheme only operates in central Barcelona and there are a limited number of bike parking locations. However, where it does operate it overcomes the concern about having your bike stolen and it means that you can make one way journeys. And of course, if you live in a city centre flat you are not faced with the problem of trying to find space to store your own bike.

The UK has an enviable record when it comes to individual giving to charity and many large companies also provide valuable sponsorship. Increasingly voluntary organisations are recognising the need to operate in a more businesslike manner if they are to survive. Sometimes business sponsorship of a charity takes the form of seconding staff from the company for a period. This is often offers personal development opportunities for the individual as well as bringing a benefit to the charity. In London there is a scheme pioneered by Pilotlight, a charity that matches commercial expertise with small voluntary groups.

The idea is already well-established in the US, where it has been dubbed venture philanthropy. Thanks to this initiative, top-level managers are able to put their planning abilities, experience and mentoring skills at the disposal of charities, rather than simply writing out a cheque. Many years ago I heard a story about the newspaper magnate, Roy Thomson, later to become Baron Thomson of Fleet. He was asked to help a charity. He declined to give money as that was easy for a rich person. Instead he offered his time, which to him was a far more valuable commodity.

Through the Pilotlight initiative, Goldman Sachs, KPMG, BT, Sainsbury's, BP and Channel 4 are some of the companies whose executives are following Roy Thomson’s philosophy.

One morning last week my wife ventured into the local branch of a well known building society turned bank (the one that sounds like an ecclesiastical building) to seek clarification on what sounded like a particularly attractive investment opportunity. Unlike our own bank where there are always people ‘floating around’ waiting to offer help, there was nobody around except the two cashiers. As one of them was free my wife asked if she, or anyone else could help with a simple query. No, there wasn’t anyone available at that point so could she come back in an hour, or they could possibly ‘fit her in’ at 2.30 in the afternoon!

Not altogether surprisingly she concluded that they weren’t that bothered about having her business and so she declined to return. I would love to know how many staff were in the back office chatting, drinking coffee or outside the back door having a smoke. Perhaps the said bank’s Spanish parent company would do well to spend less on TV advertising and more on staff training.

From time to time I hope to have guest Ramblers. Next week will feature the first such guest, Trevor Gay. Trevor is the author of a number of books on management and leadership topics and fellow ranter about poor customer service.

David Wike