The Power Of The Word
Here are some samples of my writing work.
I like to write on a wide range of topics & for an extensive range of uses.
Examples of uses are:
- Press releases
- Website content
- Columns, features & articles
- Brochures
- Key messages for a business
- Business slogans, Mission/Vison Statements & Straplines
If you want to see any more, just contact me or see other examples here & here.
I like to write on a wide range of topics & for an extensive range of uses.
Examples of uses are:
- Press releases
- Website content
- Columns, features & articles
- Brochures
- Key messages for a business
- Business slogans, Mission/Vison Statements & Straplines
If you want to see any more, just contact me or see other examples here & here.
This is an article written for the Institute of Directors magazine on behalf of Sage UK
Growth: a catalyst for change in business management systems So what is growth, anyway? As a headline statement, a business might announce, “…last year we experienced 10% year on year sales growth.” But behind that apparently successful announcement there is inevitably a much bigger story. So, just what does this statement really mean in terms of the day to day running of the company? The usual interpretation is that the business is simply selling more of its products or services. But who to? Perhaps it is selling more of the same to existing customers. Or maybe it has invested in developing new products and services to address new markets and for cross-selling into existing customers. What is certain is that the sales growth will be impact on every part of the business. As a business grows it becomes more complex and therefore must ensure that its financial and operational controls grow to protect profitability and cash flows. Anatomy of a small business In the early years of a businesses’ life, most if not all the processes and procedures are in the heads of a small team of people. Invariably, the person at the top usually knows every detail of what’s going on. The important task of ‘doing the books’ is fulfilled either by an employee or, quite often, by the firm’s accountant. This is a dynamic and flexible team, well-equipped to drive sales and able to provide an enthusiastic, high quality of service to a growing number of customers. Most likely, the business is servicing a niche in the market originally identified by the founder as being the opportunity for starting the business in the first place. However, when sales are driven at the expense of all the other business processes, real risks to the business will arise. Risky Business So this is the point when things can start to get tricky. Increasing sales but maintaining service levels with the same number of staff becomes increasingly difficult. Furthermore, there may be more suppliers, a need for larger premises, further investment in vehicles and plant and machinery and a myriad other things to consider. And it’s not just a matter of recruiting more staff. They have to be the right people and able to understand the processes, assuming they have been defined in the first place! More employees, suppliers and investment in infrastructure also increase the need to not only trade profitably but to bring in those profits fast enough to pay the bills. It is reported that around 50% of small businesses are still trading after their first three years. In most cases, the ones that didn’t succeed didn’t plan to fail, they just failed to plan. And the reasons given for failure maybe numerous but, in the final analysis, there is really only one – the business simply ran out of cash. So, whatever the size of the business, sound cash flow forecasting and management is the key. Again, there are many elements to consider but careful control of profit margins combined with first class management collection of customer accounts are top priorities. In an ideal world all customer accounts, regardless of size, are of equal importance. At the start of this process is risk assessment. After all, it’s pointless taking orders from customers who can’t, or won’t, pay. At the other end, a large number of small uncollected debts can damage cash flow just as much as one large overdue account. And then there’s the balance between prompt payment and maintaining good customer relationships to manage. But there are other things to consider in planning growth. The business may well have found a great niche but someone else will want to exploit it eventually. It’s a competitive market place so, unless the business can just keep increasing its prices, standing still is definitely not an option. Clearly the solution is to look for new products and services, to sell to new and existing markets, with the aim of increasing profits and maintaining cash flow and enable further investment in the areas of the business that need it. True, running a successful business isn’t easy. However, there must be solutions to support budding and established entrepreneurs manage these multiple challenges or, indeed, no business would succeed. And there are. Based on the fact that everything a business does has a financial impact, then the underlying answer lies in the efficiency of the accounting systems. The answers are already there Most businesses with more than five employees, or even less, have already seen the benefits of running a computerised accounts system just to keep the books in order. However, within that basic accounting information lies the real potential to create a truly powerful and pro-active business management system. Clearly, then, the next step is to unlock that potential. Book-keeping alone is no longer sufficient although the accountant’s role is still vital in maintaining the raw data. What is important is to be able to use that data to make sound business decisions day by day as well as shape future strategies and vision. So, let’s consider these issues and how high quality business management software can make a significant contribution. As new staff join the business, tasks should become better defined to avoid duplication and to maximise individuals’ skill-sets. In this very much role-based environment, it is imperative that the software system is powerful and flexible enough to map to the ever evolving business processes as well as individuals’ needs from the system. Credits and debits where they’re due Two key areas where high quality accounting and management information software systems can make a real difference are customers and suppliers. Both represent a constant and real opportunity to maximise profit and cash generation. A proper understanding of customers’ ability to pay, payment performance, sales queries, buying patterns and margins is invaluable to any business. After all, customers who are dealt with professionally will stay loyal to suppliers they trust, sometimes even when the price is not quite right. It is logical then that the converse applies too. Suppliers will deal on more favourable terms with customers they can trust to manage properly the processes of ordering, receipt and payment for the goods and services provided. And minimising the risk of over/under ordering further benefits cash, the bottom line and customer relationships. Getting the full picture But the issue is a lot wider than just customers and suppliers. Accurate and timely information has always been the life blood of every organisation’s decision making process. However, the pace of the market place and its increasingly global nature mean that it’s no longer viable to wait until after the year end to see a financial photograph of the business. Today, the full picture must be available immediately to enable proactive and effective corporate management of any function from a stationery order to the five year plan Of course, all businesses possess the data they need but the only way to fully unlock its potential is by implementing good business management software systems. Making the right choices …Five years on from Y2K, many businesses are looking to upgrade their accounting software again. This is an opportunity not to be missed to ensure that their systems match their current business model – and to build in room for further growth. During the last 20 years or so there has been massive growth in the availability of ‘off the shelf’ packaged software solutions to help manage every aspect of the business. These provide a more cost effective option than the constant re-development of in-house systems. In recent years there has been a considerable, and welcome, consolidation in the packaged software market and only the best software suppliers have survived. Some of the packages are very much for general use, such as accounting for example, whilst others are highly specialised. It is therefore highly important that the general use packages are capable of integrating effectively with specialised solutions. But this is not the only consideration. Right up front, the business must assess its own current and future information needs as accurately as possible before it seeks out the software to match them. The next step is to test those needs against the potential solutions available and make sure they fit as tightly as possible. Arguably, this is of particular importance right now as, five years into the new millennium, many organisations are looking to change or upgrade their management information systems. So, other questions need to be asked. For example, the systems selected may seem fine but will the supplier be around in the long term to support and develop them? What software and internal/external support reputation does the supplier have? Are the systems widely used, making it easy when staff changes occur, and easily referenceable? Are they developed with future technology advances in mind? Together, top class management and business software all but ensure market leadership, either now or some time in the future, through the right choices being made at the right time. As a wise businessman once said, ‘Turnover is vanity, profit is sanity.' To which I added, ' and cash flow is an absolute necessity!’ © Richard Hannam 2010 |
This is a case study written for Sage UK
Newcastle Theatre Royal Boxed customer quote: 'Originally, our accounting function was outsourced and to improve efficiency, we needed to bring it in-house. This would help us improve the efficiency of the accounts function, strengthen financial control and move towards full autonomy. Sage MMS has provided us with flexible reporting structures and improved information access leading to better decision making and use of our resources.' Pamela Dowds, Senior Finance Officer, Theatre Royal Client Profile This famous Theatre first opened in January 1788 before moving to its present location where it re-opened its doors in February 1837. Since then, the Theatre Royal in Newcastle upon Tyne has become established as one of the UK's leading provincial theatres with an annual income of several million pounds. Presenting over 370 performances to around 310,000 people each year, the Theatre is regional home to the Royal Shakespeare Company, the National Theatre, Opera North and the Rambert Dance Company. Located in an impressive Grade 1 listed building on Grey Street, in the heart of Newcastle's historic Grainger Town, the Theatre's business aim is to make a unique, positive and valued contribution to the North East's cultural economy by presenting a programme of top quality productions and other activities. As a publicly funded organisation, owned by the City Council, it is important that the Theatre events programme appeals to as broad a cross section of the community as possible. And it achieves that through 130 dedicated employees providing a first class experience to the many thousands of local people and tourists who visit every year. As a result, the Theatre has developed an excellent reputation for its welcoming staff, wide ranging programme of events, easy booking facilities and quality cuisine. (www.theatreroyal.co.uk) The Challenge Over the years, the Theatre Royal’s constant growth in size and reputation placed increasing pressure on its administrative functions. For much of this time, the accounting operation and some parts of the administration had been outsourced to Newcastle City Council – the owner of the building. Whilst this had proven to be beneficial originally, the Theatre’s success and unique needs demanded changes as Senior Finance Officer, Pamela Dowds, explains, ‘The City Council’s support had been extremely valuable but it was evident that we needed to operate autonomously as the outsourcing of the accounting systems was creating a number of problems. For example, we were locked into reporting structures that we couldn’t change to suit our needs and there was difficulty in accessing relevant information when we needed it. In addition, there was also the risk of system failures and down-time.’ The Solution In order to achieve the objective of full operational autonomy, it was clear that a key element was to bring the accounting function in-house. ‘By doing so, we believed we would improve overall efficiency through stronger financial control and integration of information,’ says Pamela. ‘Vastly improved access to relevant information would then lead to better decision making and use of our resources.’ The next step was to evaluate carefully the accounting software packages and resellers available in the marketplace. ‘There were many to choose from but, in the final analysis, we looked at just four packages and chose Technology Services Group (TSG) to help us in the process,’ explains Pamela. After an exhaustive evaluation process, Sage Line 100 was selected as a clear winner over the other offerings. ‘This was the most favourable solution in terms of cost and compatibility with our Databox booking system,’ confirms Pamela. ‘The other systems we looked at fell short in different but important ways such as reporting structures, user friendliness, accounting functionality and value for money. Another major advantage of Sage Line 100 was its ability to handle our large transaction volumes. And throughout the process, TSG were extremely professional. Their people were friendly and helpful and willing to spend time creating solutions to accommodate our unique accounting needs.’ The Benefits Even though the Theatre Royal’s accounting processes are quite specialised, Sage Line 100 provided a good ‘out of the box’ fit to business requirements from the outset. Implementation took several weeks while a project team, comprising staff from TSG and the Theatre, ensured all the necessary modifications were introduced before finally going live. And the few issues which arose, as with any IT project, were quickly and easily ironed out. Consequently, the implementation was achieved on time, on budget and to the required quality standards. ‘One of the many benefits of Sage Line 100 is its ability to be easily customised to meet individual businesses’ requirements,’ confirms Pamela. ‘Another benefit, often overlooked, is the wide national and international use Sage solutions enjoy. That means it is so much easier to find staff that can use the systems with minimal training. Not that the system is difficult to use anyway!’ Having successfully implemented the new system, a decision was taken to upgrade to Sage MMS, Sage’s latest business solution built on the .NET platform, and also purchase Sage Payroll. ‘We felt that Sage MMS was an even better match for our complex business needs now and in the future as we continue to grow and change,’ confirms Pamela. In total, there are five Sage MMS users all based at the Theatre’s offices and their main focus is on budgetary control, invoicing and purchase ledger management. Summing up the benefits, Pamela Dowds says, ‘Sage MMS has provided us with the flexibility and control that we needed and has enabled us to make better use of our resources. As a result of highly flexible reporting structures and vastly improved information access, our decision making processes have improved substantially too.’ The Future Despite over 200 years of success, the Theatre Royal continues to focus on growing the business and, along the way, it will face many challenges as it strives to maintain its market leading reputation. There is no doubt that the Theatre’s easily accessible location in the heart of the City is one of its major strengths as are the large loyal audience, dedicated staff and the excellent relationship with national companies such as the RSC. On the other hand, a volatile economy, market pricing and the need to develop the facilities are among the challenges as well as competition from new venues. ‘We are however, prepared for these,’ maintains Pamela Dowds. ‘Since new venues attract increasing numbers of tourists, this can be turned to our advantage. Consequently, we are in the process of extending our facilities, developing new audience markets and widening our sponsorship support.’ Since every corporate action has a financial impact the accounting and business information system must be able to support management at all times. So, will Sage software be involved with the Theatre in the long term? ‘Sage MMS helped us to achieve our initial objectives of autonomy and will continue to play a vital role in our current and future strategies,’ concludes Pamela. © Richard Hannam 2010 |