Vaguely in control …

…. annoying the customer, getting on with it and kissing.

Last week I was browsing the shelves in a stationery shop when an assistant spotted my meanderings and enquired whether I needed help. I declined her offer with, “It’s OK thanks, I’m vaguely under control.” This reduced her to a state of mirth. I’m not sure whether this was because of the way I expressed it or because it patently wasn’t true! She continued her shelf stacking but was instantly available when I did need some advice.

The shop in question is one of those in the empire of Mr Paphitis of Dragons’ Den fame. I have to say that whenever I have been in, all of the staff have been friendly and helpful. Of course, this shouldn’t cause comment, it should be the norm, but so often that isn’t the case. There is a Chinese proverb that says a man without a smiling face should not open a shop. This seems very sound advice.

On Monday I had a meeting with two business colleagues. We met in the lounge of a hotel that is part of a well known chain. I ordered coffee and was asked if I wanted to set up a tab. This seemed like a good idea, but then I was asked for my credit card for them to keep behind the bar. As this is against the rules for use of a credit card and not common sense anyway, I declined and paid cash. This caused a problem as they didn’t have any change in the till, even though it was nearly eleven in the morning.

We came to lunchtime and I ordered sandwiches from the bar and asked to pay by card. Guess what, the bar didn’t have a credit card facility, so I was issued with an invoice to take to the reception desk to settle up there. This is what I refer to as a 90% business – it gets 90% right but lets itself down on the final ten percent. I expect that the Chinese have a proverb to cover this as well, but I don’t know what it is!

“We have a strategic plan. It’s called doing things.” So said Herb Kelleher, chairman and co-founder of Southwest Airlines in the US. OK, so the government is thinking about the possibility of considering a proposal to evaluate a plan for a high speed rail link from London to Birmingham. Gordon, it’s a good idea. It’s a no brainer. Just do it! My bill for consultancy is in the post.

Singapore Airlines was the first airline to secure orders for the new Airbus A380 super jumbo. Presumably the Singapore authorities realised it was a good idea to develop Changi airport to accommodate the new plane. Not only did they have to upgrade the terminal buildings but the runway also had to be widened. So they just did it. There are times when the best course of action is the most obvious. That’s when it is the time to take a focussed approach and just get on with it. It comes as no surprise, therefore, that Changi was chosen for the enormous A380’s first commercial flight last week.

The previously mentioned Theo Paphitis has five principles, one of which is the well known KISS – Keep It Simple Stupid. He believes this to be particularly important in communications with everyone involved in the business. OK, here goes then:
- Theo: Your team in Bromsgrove is doing a good job.
- H*****y Inn: Stop annoying your customers.
- Mr Brown: Just get on and build that railway.

Clear enough?


David Wike

Almost the best …

… teamwork, blue cards, enterprise and a Scottish shambles.

The England rugby team and Lewis Hamilton came second in their respective contests. It has been said that first is first and second is nowhere. It is true that it is the winner’s name that goes on the trophy, that it is them who are remembered long after the event. But I think that there is something that is more important.

For me the most important thing in any walk of life is to be the best that you can be, to do the best with whatever ability you have been given. Sure, both the rugby team and Lewis will look at mistakes made and rue the fact that possibly they could have won. But in my view both did the best they could. Whether everyone in the McLaren pit lane could say the same is more debatable from my perspective. This emphasizes that everyone in a team must give of their best for success to be achieved.

A different kind of teamwork may develop in London. Hurlingham and Chelsea comprehensive school in Fulham is involved in discussions that could see it turned into a bi-lingual school, partly-funded by the French government. This would see the school using both the French and English languages and national curriculums. Apparently the local authority, Hammersmith and Fulham council has been approached by the French government about setting up a school using the French language, with part-funding on offer. Part of the thinking is that it could provide lessons for the children of French nationals in the capital.

Continuing with the European theme, there is a proposal being developed for a ‘blue card’ scheme which would allow suitably qualified people and their families to live and work within the EU. It is suggested that there is a need for 20 million skilled immigrants over the next 20 years. In particular, the EU is very short of expertise in engineering and computer technology. Of course, not all countries are keen on the details of the proposed scheme, some having their own preferred arrangements.

Regardless of the detailed arrangements, according to the European Commission, "To maintain and improve economic growth in the EU, it is essential for Europe to become a magnet for the highly skilled." It seems extraordinary to me that we have failed to train enough people in the skills required to support the economy. I am particularly surprised at the shortage of expertise in computer technology as IT in its various guises seems to be the one subject that interests most young people in one way or another.

I am currently involved with one of nine pilot projects in the Schools’ Enterprise Education Network programme looking at innovative ways to further the development of an enterprise approach to support the 21st century economy in the UK. If the pilot is successful I anticipate that the programme will then be rolled out across the country. This may go at least part of the way to helping schools and students align themselves more with the needs of business in a rapidly changing economic environment.

A report published yesterday said that voters were "treated as an afterthought" in the planning and organisation of the May 2007 elections in Scotland. The elections had a new ballot paper design and a new voting system for the council seats. Ron Gould heading the enquiry into the shambles that resulted said, "Changes were introduced with the expectation that they would simply fall into place."

The results process suffered considerable delays and in all some 146,000 ballot papers were rejected. There are two key learning points. If you are doing something new, always test it first. And most importantly, remember that the only reason you should be doing it is to serve your customers, in this case the voters. There seems little doubt that those responsible for the election were not the best they could be.


David Wike

Sloping playing fields, target common sense, rising from the flood, an opportunity.

Last week Welsh Water was fined £60,000 and ordered to pay £69,000 in costs after admitting supplying unfit water that left 231 people suffering from sickness after the outbreak of the cryptosporidium bug in November 2005.

Back in the summer Cadbury was fined £1 million for failings which resulted in salmonella in chocolate products. It is also reckoned to have cost them £30 million in terms of the resulting product recall and lost sales.

At about the same time British Airways was being fined £121.5m by the UK Office of Fair Trading and $300m (£148m) by the US Department of Justice, a total of £270m after it admitted collusion in fixing the prices of fuel surcharges.

Is it my imagination or is there an imbalance here?

Also last week we heard the incredible horror story of Maidstone and Tunbridge Wells NHS Trust. Like most people I am absolutely incredulous that such a regime should have existed. I believe that criminal charges should be brought against the senior management. If this had been an industrial company that had suffered 90 fatalities as a result of sloppy practice, there is absolutely no doubt that the Health and Safety Executive would have prosecuted.

Again, there has to be a level playing field. Management of any organisation owes a duty of care to its employees and customers. It matters not whether it is a private company or a state run hospital, the same rules should apply.

In previous Rambles I have criticised the government for setting too many targets in health and education, for being unwilling to let the professionals manage without interference. In this case there seems little doubt that focussing on certain targets caused the management eye to be taken off the ball, but surely to goodness, any half competent and caring management would recognise that their first responsibility was to the patients. Targets can be useful. We all need them to stretch us. But an application of common sense is even more useful.

Some call centres have targets for speed of dealing with the customer. This isn’t to benefit the customer but is a way of getting more out of the phone operators. Thankfully many recognise that it is the quality of the call from the customers perspective that counts rather than the speed of throughput. Similarly, sales people who only care, or are only allowed to care, about the number of new sales deals clinched, do their company no favours in the long term.

Most of us want to be looked after, valued. If we feel we are important to the business we are likely to go back again. If we are dissatisfied it is more than likely that we will go elsewhere next time. The most valuable member of the sales team is the one that you don’t have to pay - yes the customer who recommends you to others because they are delighted with the service that you provide. My website features a few who are worthy of recommendation. One in particular I would like to mention.

Hotelshop is based in Droitwich in Worcestershire. They specialise in booking hotel accommodation, whether for business or pleasure, and short breaks throughout the UK. They pride themselves in finding last minute deals with great savings on normal rates. During ‘The Great Flood’ that affected many areas of Worcestershire, Herefordshire and Gloucestershire during the summer, their offices were flooded to a depth of ten feet. The file server was lost, the phone system was lost, records were lost. Thanks to a great team effort which saw temporary relocation, including to kitchens and dining room tables, and long hours worked, business was able to continue. Check them out at http://www.hotelshopuk.com/.

On Wednesday 7th November I will be running a business workshop called ‘Towards the Perfect Business’. The target ‘audience’ is owner/directors or influential managers in small/medium sized organisations. This is a ‘dress rehearsal’ to evaluate the concept before launching the full programme.

Two of my associates, Kim Johnson and Trevor Gay will be helping to facilitate the Workshop. You can read about us and learn more about the Workshop on my website http://www.davidwike.co.uk/.

If you are in my target audience category, there is an opportunity to participate in the event completely free of charge. In fact a buffet lunch and all refreshments will be provided as well. The Workshop will be held in Bromsgrove, Worcestershire starting at 9.30am and finishing around 4.30pm. If you are interested, please contact me as soon as possible as there are only a couple of places left.

And finally, did you see the first programme of the new Dragons’ Den series that started on Monday? Wasn’t it wonderful?


David Wike

The bleedin’ obvious, smart marketing, fast wine.

The BBC, and probably other broadcasters, seem to think that we are all stupid. Have you noticed how everything is accompanied by a commentary? We listen to a reporter standing outside No.10, in the middle of a flooded field or wherever it happens to be, then the studio news reader tells us what we have just heard. By the way, why do they spend money sending the reporter to stand outside No.10? They could just as well be in the studio with a picture of the PM’s pad in the background. And as for standing in flooded fields … !

Then there are programmes like Dragons’ Den. We’ve all heard four fiery Dragons say that they are not going to invest in the business idea being pitched to them. Do we really need Evan Davis telling us that there is only one Dragon left? Never mind the accusations that exams are being dumbed down, what about broadcasting? It reminds me of Fawlty Towers when a frustrated and irate Basil (when wasn’t he?) suggested that Sybil should go on Mastermind, specialist subject ‘The Bleedin’ Obvious’!

The band Radiohead has told fans that they can pay as much or as little as they like to download the band's new album ‘In Rainbows’. Is this a piece of clever marketing or have they lost the plot? They will sell the album directly from their website because they are not tied to a record label. However, although the download is potentially free, the album will also be available as part of a £40 box-set which includes the CD, two vinyl records, a CD with additional songs, photos, artwork and lyrics. Not sure what most folk will do with the vinyls!

Presumably Radiohead are counting on the fact that many of their millions of die-hard fans will be unable to resist buying the box-set. Of course, those who download will be required to register their details and therefore become targets for future marketing campaigns. Apparently free albums also drive demand for live tours, an example being Prince, who gave away his album 3121 for free in the UK through the Daily Mail. He subsequently announced 21 tour dates in London, all of which sold out.

In my Ramble this week last year I mentioned that Google had just announced that they had bought YouTube for $1.65 million. I then went on to say, “Gosh! Amazing! Er, but who or what is You Tube I asked myself?” Only twelve months on I guess we all know what You Tube is and have probably seen video clips from it, even if only on TV news. Technologies are moving so quickly that it is difficult to keep abreast of developments. But this is exactly what businesses need to do to stay competitive, using innovative marketing campaigns along the way to take advantage of the technological revolution.

But smart marketing isn’t enough. In fact it can be dangerous if you ‘build up’ what you are offering but then fail to deliver. Fortunately some get it spot on. I ordered a case of wine last Friday from Laithwaites. I haven’t bought from them before but they got off to a good start by delivering my wine yesterday (Tuesday), well within the promised seven days. In fact their average delivery time is 3.2 days apparently. This is an excellent example of under-promising and over-delivering.

Since Tony Laithwaite started in 1969 by bringing wine back in a van from Bordeaux the business has won countless awards for customer service. Undoubtedly this has been a significant factor in the company growing to become the world’s No.1 home delivery wine merchant. Now if those dozen bottles of very nice Spanish reds come up to expectation I will be a very happy customer!

David Wike

Think it through, fast green magnetic trains, traffic light tax and risk taking.

The Conservatives have announced plans to tax flights rather than individual passengers in an attempt to make flying more ‘green’ by encouraging airlines to operate with full aircraft. This strikes me as another example of politicians not fully thinking through the consequences of their actions. Of course airlines want full planes. It is a simple matter of business economics. Already some low cost operators cancel flights at short notice if they don’t have many passengers. The Conservative’s proposal is likely to lead to even more cancelled flights, which is fine unless you happen to be the one left stranded. Even more so if this means you miss an important business appointment. The UK economy needs a better transport infrastructure, not greater unreliability.

As a nation we have to be prepared to take technological and financial risks. Although it was a German who first dreamed of 'electromagnetic levitation trains', it was Eric Laithwaite, a British professor of electrical engineering who invented the linear electric motor in the late 40s. It is this technology that made Maglev trains possible and it is used today by both German and Japanese systems.

In Germany a deal has just been done to link Munich airport to the city centre. The builders of the Munich system, Transrapid, a Siemens – ThyssenKrupp consortium, were responsible for the Maglev from Shanghai airport to the city centre. On a good day the journey takes 40 minutes by car. The Maglev does it in just over seven minutes!

The Japanese are also developing a system and it is likely that the two countries will end up supplying Maglev systems to much of the world, just as they do with current high speed trains (along with the French). Maglev is exactly the sort of cutting edge technology that the UK should be developing if we are to achieve the government’s ambition to become a technology and enterprise economy.

Maglev could also be a significant contributor to ‘greener’ travel. According to Transrapid, the technology uses five times less energy per passenger mile than jet aircraft. However, the cost and disruption associated with building a Maglev infrastructure are likely to mean its adoption is going to be fairly slow.

Stop-start traffic is a very significant generator of emissions. Every time a vehicle accelerates emission levels soar. And of course, when stationary there are pollutants being emitted without any travel gain. I have a simple proposal to improve this. It is a tax on traffic lights! I’d start by focussing on contractors’ lights. If you want to dig the road up you need to apply to the local council for permission and to install lights. So I’d allow one day of tax free activity, thereafter I would levy a daily tax. I guarantee that this would dramatically reduce road works times!

Continuing on the earlier theme of risk taking, the Conservatives have announced that they would make it easier for youngsters to take part in competitive team sports, go on outward bound trips and 'put adventure back into learning'. They plan to move the balance away from 'health and safety bureaucrats'. "We will let our children once more enjoy the thrill of the wind in their hair and the thrill of testing themselves outside their comfort zones," said the party’s spokesman on education, Michael Gove. This has to be good news. We have to get away from the ‘nanny state’ and become more adventurous in all areas if we are to compete in the global economy of the 21st century.

A less welcome aspect of risk taking for those of us who are nervous flyers is the news that the China Aviation Industry Corporation is currently assembling a regional passenger jet that it hopes will establish China as a major plane manufacturer. The quality record of Chinese products and the Chinese air safety record are not encouraging!



David Wike