realisedevelopment.net

Just another WordPress site

After Business Link…Time for a change of tack?

by

So it was confirmed in the White Paper yesterday that Business Links will be gone by the end 2012.  All that will remain is a website, and perhaps a call centre.

So what will replace £154m per year of business information, advice and guidance?

Time for DIY support I think.

Time for businesses and the wider communities of which they are a part to help themselves on their own terms.

I am not talking about ‘local’  Chambers of Commerce or Enterprise Agencies winning contracts from the State to deliver outputs and targets in return for tax payers cash.  That will just recreate the problems of the old regime:

  • post code lotteries,
  • sectoral discrimination,
  • services designed to trigger funding payments and hit targets, rather than work in person centred ways to deliver just in time support to the people who are hungriest for it,
  • groupies who learn to lunch with the bureaucrats and help them to deliver the targets while some people who are the most hungry for support are denied it because they are not aiming to turnover £2m within 24 months, live in the wrong part of town, aren’t working in a priority sector and so on.

DIY culture can provide support that is:

  • more accessible,
  • more inclusive,
  • much less expensive and I suspect,
  • much, much more impactful in terms of creating economic, social and political progress than the current system.

Why, because it is convivial, inclusive, centred on people and relationships, not focussed on policy goals and targets, bureaucracy light, puts experts and expertise in the back seat rather than the driving seat (it is great to have them on board when we need them – but much of this stuff we can figure out for ourselves), dynamic and above all fun!

And I would ensure that everyone who wants it, who really wants to work on making progress, should have access to free, confidential and competent coaching, in the community, from a coach who is supported, and held accountable by local people.  This is both practical, sustainable and affordable with the potential for a tremendous return on investment in terms of business, culture, health and well-being, community development, skills development and so forth.

The radical secret to this is that the coach engages with and works on the clients agenda – not the agendas of the planners and policy makers.

Time to take ‘enterprise development’ out of the ghettos of ‘entrepreneurship’ and ‘business support’ and to put it at the heart of our strategies for community development.

Because if we develop the people and the communities then they will build the economy.

I wonder if any of the new Local Enterprise Partnerships will have the courage, foresight and leadership to give it a go?

New Enterprise Allowance or New Enterprise Alliance?

by

Another government, another push for another 10 000 small businesses to be created from the ranks of the long term unemployed.

To me it seems similar to what we already have under the Flexible New Deal, unless I am missing something: it may be a tad better resourced.  But, I am encouraged that Iain Duncan Smith appears to have a real commitment to social justice, at least, he chairs the cabinet committee on it.   Let’s hope that his commitment to social justice rather than newspaper headlines really shapes this New Enterprise Allowance.

So what are the chances of success for the New Enterprise Allowance, and what might be the pitfalls?

To begin with, although I am a big fan of mentoring, I am not convinced that it is the best way to support people with transitions from unemployment to self employment.  The best mentors (as opposed to coaches) have ‘been there, done that, seen the film and got the t-shirt’.  They can offer sage advice and guidance based on practical experience (usually gained over many years in a specific and relevant industry, and importantly should be chosen by the mentee and not assigned to them by a service provider); Mentors should know what it takes and be available to put in the time and commitment necessary.  Let’s also hope that they are properly trained, supported and supervised in the process of mentoring.  And mentoring should not be a mandatory component but an option, we have to recognise that folks learn in different ways and for some the thought of being mentored just does not cut it.

So, if we must have a mentoring programme let us run it well.  Lets take mentoring seriously.  Let’s make sure that we have enough well trained mentors.  Personally I doubt that we will.  More likely we will find an army of middle managers looking to do some CSR, or rebadge existing enterprise advisers as New Enterprise Allowance Mentors.  Plus ça change…probably

I think the enterprise coaching role is, in places where it has not been confused with enterprise evangelism, much more likely to be effective.  Non directive, facilitated conversations that give people space to develop their options and make their own choices provides a sustainable route to more enterprising communities.  Conversations that don’t use ‘benefits’ and ‘enterprise’ as carrots and sticks to manipulate people to meet government targets and trigger payments by ‘results’.  Our industry is riddled with such practice.  We need conversations that respect people and their right to choose.

I suspect that mentors will work with mentees primarily on ‘the business plan’.  I doubt they will have the coaching skills to really work on developing the person rather than their idea.

Will a decision not to start up be valued and rewarded as highly as a decision to start?  I hope so.

Will the New Enterprise Allowance engage ‘the community’ in supporting local people struggling to make the transition to self employment?  No sign of community panels and networks to support the formal delivery structures.  It is not so much a New Enterprise Allowance that we need in our communities as a New Enterprise Alliance….

Will the scheme be designed to encourage the formation of team based start-ups where complimentary skill sets and personalities ensure that all functions in the business are adequately covered?  I doubt it.  It will, if history is our guide, take the shortest, lowest cost, route from benefits to self-employment, not the route that is most likely to result in a sustainable business with the potential to grow.  While we should be looking to maximise return on investment I suspect we will look to minimise investment.  Cost per start-up will be the metric of choice.  And the sooner we get the better.

The New Enterprise Allowance will be for long term unemployed who ‘want’ to start a business.   Finding the people who really WANT to will be an enormous challenge.  Personally I don’t think it is anywhere near enough for someone to want to start a business.  It needs to be something that they HAVE to if they are to have a decent chance of success.

We have approaching 800 000 people who have been unemployed for more than 6 months.  The New Enterprise Allowance hopes to help 10 000 of them to start a business this year, that is just over 4 in every 500.

  • But which 4?
  • What percentage of the 800 000 will wish to engage with the programme?
  • How many will the delivery mechanism engage with at the start of the process?
  • How many of those will make it through to trading?
  • What positive outcomes will be delivered to those that engage with the programme but decide not to start a business?

This represents a challenge.  To help find the few who really will do the groundwork required and learn what needs to be learned.  It is a challenge both for marketing the scheme and effective psychological contracting between service provider and service user..

And the whole scheme reeks of yet more ‘fast enterprise’.  A couple of mentoring sessions and three half days with a training company and you will be ready to roll.  Well maybe. And maybe not.  Where these sorts of schemes prevail they prioritise the most capable and even then have frightening business failure and loan default rates.  Good business start ups plan and prepare carefully.  They don’t rush it.  There is little point in starting 10 000 new businesses in a year if the survival rates are not good.  And please this time will someone show an interest in survival rates?

Then there is the cash element.  In the transcript of his speech on Conservative Home, IDS is reported as saying:

We will provide business mentoring and a financial package worth up to £2000 to get your business up and running.

Now quite what is meant by ‘a financial package worth up to £2000’ remains to be seen.  Cash grant?  Loan?  Benefits?  But clearly in this transcript it is £2000 in addition to the mentoring provided.

But can anyone explain to me the why the magical figure of £2000?  How about we teach them to access the finance that they need to give their business a well capitalised start?   Whether that is £5 or £5m?  If we are serious about teaching people how to run a small business let’s not cap ambition according to the size of our currently cash strapped treasury pockets.

So at first glance it looks to me like wrong pedagogy, wrong curriculum, wrong ‘financial’ package, wrong pace of change and a failure to embed enterprise culture in the community.  Apart from that all systems are go.  I can already hear the usual suspects sharpening their pencils in anticipation of the invitations to tender.

I hope it is me that is wrong….

What do you think?

The Web Changes (nearly) Everything…and what to do about it…

by

The web has changed (nearly) everything.

Bloggers, Tweeters, Patient Opinion, Fill That Hole and so on…the web is full of people’s opinions, experiences, ideas and beliefs about you, your organisation and your products and services.

It is far more likely that we will read about what you do in a piece written on the web by our peers than a piece written by your Press Office or PR agent on your website.

We have learned to recognise and respond to authentic voices that want to converse.  We are increasingly immune to your sales pitches….

In this one day workshop we will explore exactly what has changed because of the web and how.

This will not be a day for technologists and web geeks, but for communications professionals, service managers, business developers, strategists and others who are wondering how to manage perceptions on the web and use them to build a better business.

We will not be looking in any detail at the specifics of particular social media platforms or web sites but we will be examining how the new information that it surfaces can either kill or cure an organisation.

We will then look at practical actions and strategies that will help to re-position you effectively in the web enabled world.

Remember:  your customers and service users know more about your products and services right now than you do.

And whether their experience is good or bad, increasingly they will use the web to tell people about it.  The only question is, once you accept and understand this, how do you respond?

Who Should Attend?

This workshop will be useful to anyone who is coming to terms with how the web is shaping their business and how they need to re-think strategy and communications as a consequence.

Whether you work on the delivery and management of a public service or in the private or ‘third sector’ our promise is that  this workshop will provide yo with practical ideas about how to make the most of the new web2 world.

What we will cover:

  • Why people listen to the web, and how you can too…
  • When a story breaks – how should we respond?
  • Why SHOUTING on the web won’t work – how to engage in polite yet powerful conversation
  • Finding your voice and speaking your truth
  • Moving from online to offline – what to do when you actually meet the online community
  • Dozens of ways in which the web changes everything and how you might respond as a result

Workshop Leaders

The sessions will by led by some of Leeds most influential and experienced bloggers, tweeters and social marketers.  By people who care passionately about the web, good business and civic society.

So far the list includes Mike Chitty and Phil Kirby – but is likely to grow!

If you fancy lending a hand in the design and delivery of the workshop rather than coming along as  participant, or if you have any questions then please do get in touch.

Workshop Costs

£200 per person plus VAT and booking fee.

Just 10 early bird tickets are available at £150 per person plus VAT and booking fee.  Early bird ticket sales end when all 10 have gone or on 31st September.

Grab an early bird ticket while you still can: http://webchangeseverything.eventbrite.com/

If you would love to attend but can’t afford to then drop me a comment and I will see what we can do….

Sticks, carrots, coercion and coaching

by

“What we did establish is that the carrots offered were far less effective than the sticks employed.”

Rt Hon Margaret Hodge MP, Chair of the Committee of Public Accounts – talking about the ‘limited effect’ of Pathways to Work pilots

Sticks and carrots have a long and noble tradition in the  management of donkeys.  However even with donkeys there are times when the ‘bribe and  punish’ approach to change management fails:

  • When the donkey is not hungry enough
  • When the effort of reaching the carrot is too great (the burden is too heavy)

In these circumstances we may choose to resort to the stick.  But this too will not work if:

  • the pain of the stick is thought to be less than the pain of moving forward
  • the donkey learns to like the stick and the attention that it brings

But I think the real issue here is not about the limitations of sticks and carrots in the management of donkeys and people.

It is about the complete and utter failure to understand the nature of human motivation.  Motivation is that which energises, directs and sustains a person’s efforts.  Sustains efforts.  Sticks and carrots applied to move a donkey from one (expensive) field to another (less expensive field) do NOTHING to sustain efforts.  In fact it is likely to achieve the opposite.  The donkey returns to its passive state until more carrots and sticks appear on the scene.  And the state wants more enterprising communities?

But the major problem is not treating people like donkeys, and further dulling their enterprising souls.  It is that the state believes that this is the most effective, fair and just way of changing behaviour.  That this is such a common default setting when trying to manipulate the behaviours and choices of its citizens.

And we wonder why ‘community engagement’ is so difficult.  When you have beaten and bribed your donkeys into submission don’t expect them to engage with you, without the use of ever more sticks and carrots.

Perhaps instead of resorting to a coercive approach to change, we might try instead a coaching approach?

Helping people to recognise their long term self interest and how it may be pursued.  Helping  them to develop the power they need to make progress in their lives.  Helping them to recognise that it is possible and that they don’t need to be pushed around by a bureaucratic system of sticks and carrots.  That THEY have choices and agency in their own lives.  Vegetable wielding bureaucrats do not have to be the architects of their future.

And what if someone decides that their long-term self interest is served by staying exactly where they are?

Well, we could just leave them alone and put our time, energy and investment into those that want to explore pastures new.  Why should the squeaky wheel get all the grease?

Because perhaps people are more like sheep than donkeys.  When they see some of the flock moving forward others are sure to follow.

Aren’t they?