Regular readers will I am sure recall my previous articles about my positive experiences with Twitter and the benefits it can deliver in promoting businesses, organisations, events, venues locations etc. etc. etc.

Yesterday – yes a Sunday – was a case in point! From the comfort of the sofa in my own living room in Sutton Coldfield, I was able to experience a fantastic walk taken along the costal route from St. Peter’s Port to Jerbourg in Guernsey, by my good business contact and friend, Donato Esposito.

Donato, who is a social media expert and champion of the West Midlands, is better known to many as Bostin Bloke. And yesterday, with nothing more than an iPhone 4S, the app: instagram and twitter, Donato gave an infinitely more engaging and compellingly powerful case for visiting this beautiful and wonderful Island, than any expensively produced campaign the Guernsey Tourist Board could commission.

A place that wasn’t even in my thoughts is now most definitely on my “places to visit” list. I urge you to take a look at Donato’s tweets and photos on the 21st and 22nd April @bostinbloke or by visiting his blog: One man and his iPhone. As Donato states in his current Twitter profile image:

Live

Laugh

Love

Discover the World

Take photos

How could you use Twitter to make a difference to your business… to your world?

A brief, but in my opinion, entirely justified rant…

Every month, in CIMA’s Financial Management magazine, there is an article about the most recent cases brought before the Ethics and Conduct committee. Now, obviously this is essential from the point of view of professional standards being maintained and been seen to be maintained. But what disappoints me, are some of the obtuse reasons behind the hearings.

In the most recent edition, there were a couple of individuals who saw fit to cheat, in the most unsophisticated of manner, during the recent exams – shabby and totally unacceptable. But what infuriates me more than anything else, were the number of cases brought for unprofessional conduct whilst performing taxation services!

Now this may seem rather strange, seeing as the “A” in CIMA stands for Accountant! Yes CIMA students are taught and examined on their taxation knowledge, but we merely scratch the surface compared to financial accountants – especially those who work in practice providing statutory and compliance services.

CIMA goes to great lengths to differentiate itself and its members from the external, historical, audit based approach of the financial accounting bodies such as ICAEW and ACCA; promoting our internal, proactive, management accounting approach that is essential to business development, profitability and growth. So here’s the rant: why do some people go to the trouble of qualifying as a CIMA accountant and then offer statutory services such as taxation … why?

If you want to do statutory/compliance accounting, study ICAEW or ACCA instead… and if your business is looking for a financially qualified business leader to help you strengthen and grow your business, choose a CIMA qualified professional. Rant over!

Complexity within business is often a double edged sword. On one hand it can create the specialism and technical barriers to entry that leads to genuine competitive advantage. But on the other hand, too much complexity can be a cause of uncertainty, misinformation and inefficiencies resulting in poor decision making and poor utilisation of resources.

So how can you identify whether or not your business suffers from the wrong kind of complexity? Here are some simple points to consider:

Understand the problem: For most organisations, complexity isn’t something that happens overnight. It tends to be ingrained in the psyche of those involved in the process and can become a self fulfilling prophecy. Understand to what extend it is self generating an irrelevant, opposed to crucial to your business’ success.

Assign responsibility: Appoint someone within your organisation; probably the head of the finance function; as they’re best placed to oversee the task, to take responsibility for identifying and carrying out improvements. Who can you trust in your business to ensure the management information to support your decision making is accurate, relevant and timely?

Information audit: Conduct an audit to understand to what extent your organisation or business suffering from “paralysis by analysis”? What proportion of information is genuinely useful; which is “interesting” but lacking purpose; and which has little or no value at all? Are you producing a report each week because Bill, who retired in 1998, asked for it once in 1987, and you’ve been producing it ever since?

A focus on “value”: Consider to what extend is the provision of information, both useful and irrelevant, is detracting from your organisations ability to add value. Are “frontline” staff being taken away from their primary functions in order to produce un-necessary information? Police being taken off “the beat” to fill in arrest forms is a good example of this.

Strategic planning: Does your business have a clear vision of where you want it to go? Is that vision financially and commercially viable? But just as importantly, does your management information focus on the key factors critical to your business’ success? Does it enable you, in a timely manner, to understand where and how it may be coming “off plan” and take steps to correct it?

Systems for communication: Are the right systems in place to enable effective management. Not just the IT systems to disseminate the right information to the right people at the right time. But is the information presented and communicated in an effective manner? Is it user friendly? Dashboards, KPI’s, summary sheets…

Culture: Are you the type of person who leads by example? The key here is to ensure that your organisation is focused on the provision of lean information aimed at achieving strategic and commercial goals. As previously mentioned, some complexity can lead to competitive advantage. This isn’t a cost cutting exercise.

And if all else fails… if you’re struggling to find your way through the “smoke and mirrors”, don’t be afraid to adopt an activity based management approach. Prune hard back to basics and rebuild the reporting process.

If you would like to learn more about reducing complexity and improving the reporting function within your business or organisation; or wish to find out how Suttongate Consulting could help your company to implement a lean management information system and decision making process, then please do not hesitate to contact us at enquiries@suttongate.com.

There was an interesting article in this months’ Financial Management magazine, which broached the delicate subject of, effectively, imposing longer payment term on your suppliers, as a tactic to address tighter cashflow and funding issues.

This isn’t a new problem. For many years now, companies of all sizes from various sectors have sought to push the traditionally acceptable net monthly or 30 days terms to 60 days, 90 days … even 120 days in my experience. And it’s not just the payment terms either. Let’s not forget the delaying tactic typically used, from the traditional “the cheques in the post” to using non-compliance with quality approval processes and disputing level of completeness for stage payments.

What should never be overlooked is that effective cash management is an art and not a science; and a black art at that! But despite being easier said than done, the article, quite rightly points out the potentially severe long term consequences of this approach. The importance of having financially stable suppliers, able to maintain a sustainable supply chain is critical to any business’ success; as is its reputation and credibility within its industry and among suppliers. All of these factors could end up being detrimental to your company’s long term success, before we even consider the legal and statutory ramifications.

The quickest, easiest and most obvious solution to a problem is rarely the best option; is it?

For some time now I’ve regularly heard experienced business professionals talking about the importance, in the modern business environment, to be niche, specialise, nobody wants a jack of all trades. And they’re right! There are many professionals around who are providing and excellent services and earning the justified rewards by delivering a small, but key aspect of their area of expertise to select group of clients; sometimes a specific profession such as dentists.

This goes hand in hand with recognition, in these difficult times that the business world can’t carry on how it was in the 80’s and 90’s. We all need to work together and be more co-operative and inclusive if we’re to prosper and succeed. Let’s see if they’re still singing the same tune, when we are well into the next period of high economic grow, shall we?

Speaking as a finance professional and management consultant, I am keen that every business owner or board of directors should be able to concentrate on what they do well: developing their products or services; growing their customer base; taking their business forward. I don’t want them wasting their time fire fighting problems and performing tasks that they’re not qualified or experienced in dealing with and that isn’t adding value to their business. Let the experts deal with it!

My niche is as a part-time Finance Director and Non-Executive Director to SME’s, Business Angels, investors and entrepreneurs. But through my network of trusted business contacts, I can offer a “Total Business Solution” to any clients, no matter what the problem. From raising finance to accountancy; legal support to HR issues; Marketing to IT support; Property related issues to PA support and everywhere else in between. What’s more, so can my contacts.

Working together and being more co-operative and inclusive; maybe we can after all!