Not just for Christmas…..

I read at the weekend that post office workers have been given guidance as to whether they should accept tips this Christmas. The excuse given for this is compliance with the Bribery Act although one can’t help but think once again that the HR department have spent too much time attending employment law update courses.

Add this to the news that over half of SMEs are planning to cancel or downsize their Christmas parties and it seems that many employers are doing their best to ensure that their workers have anything but a merry Christmas.

Christmas is a time of year that regularly taxes Finance Directors. Being expected to act like Scrooge throughout the year means that when we actually reach the season of goodwill the words “Bah Humbug” naturally trip off of our tongues. Christmas parties, staff tips and company gifts often provoke heated discussions that leave us tearing our hair our and desperate to get on with more value added activities like keeping the business afloat.

Actually I am fully in favour of Christmas parties (although on cost grounds I may occasionally advance the argument that they should be held at a time other than Christmas) although probably for negative reasons rather than positive ones. The impact on staff morale of not having one far outweighs the cost savings.

I am of course aware of all the HR issues that surround such events such as unacceptable behaviour and inclusivity, but I believe that if a business has proper codes as to how employees should conduct themselves at Christmas, or indeed any other time, it should be possible to ensure that the benefits outweigh any risks.

I am less in favour of corporate gifts. Active discussions take place as to which customers (always customers never suppliers – funny that) should receive Christmas gifts, what form they should take, how much should they cost, who should give them etc. etc. If the only consequence of the Bribery Act is that we can finally dispense with this annual ritual it will almost be justification for introducing it in the first place.

In this case I don’t think I am being Scrooge like in my dislike of forced Christmas bonhomie. In the same way that I believe that everyday should be Mother’s Day, customer (and supplier) care should be an ongoing daily process. Good business relationships are not just for Christmas you know.

Look after your suppliers? No really - look after your suppliers….

The announcement that Zavvi, the music, games and DVD retailer is to close down for good, has brought home a salient point about the recession that often gets overlooked in those “top tips on surviving the recession” listings.

Nearly everybody will suggest that you imagine a scenario when one of your top customers goes bust, but very little emphasis is put on the situation when one of your main suppliers goes the same way. Yet that is precisely what has happened in this case, where the key supplier in question was Entertainment UK, which was a casualty of the Woolworths demise. Not only did Zavvi lose its key supplier at a time when it desperately needed stock i.e. the run up to Christmas, but more importantly it lost valuable credit facilities, which could not be replaced as new suppliers demanded immediate payment.

A salutary lesson for everybody - when your key supplier goes down not only do you lose products that you need for your business, you potentially lose a valuable source of finance. One to add to those key financial relationships that have to be managed.

Look after your suppliers? No really - look after your suppliers….

The announcement that Zavvi, the music, games and DVD retailer is to close down for good, has brought home a salient point about the recession that often gets overlooked in those “top tips on surviving the recession” listings.



Nearly everybody will suggest that you imagine a scenario when one of your top customers goes bust, but very little emphasis is put on the situation when one of your main suppliers goes the same way. Yet that is precisely what has happened in this case, where the key supplier in question was Entertainment UK, which was a casualty of the Woolworths demise. Not only did Zavvi lose its key supplier at a time when it desperately needed stock i.e. the run up to Christmas, but more importantly it lost valuable credit facilities, which could not be replaced as new suppliers demanded immediate payment.



A salutary lesson for everybody - when your key supplier goes down not only do you lose products that you need for your business, you potentially lose a valuable source of finance. One to add to those key financial relationships that have to be managed.

I've got the brains, you've got the looks....

Wednesday 21 Jan 09 - Back in the 80s the Pet Shop Boys banged on that "There's a lot of opportunities, if you know when to take them, if there aren't, you can make them".

It is easy to think at the moment that opportunities are in short supply but talking to Henry Camilleri of independent financial advisors Camilleri Associates this morning at a breakfast seminar organised by Clydesdale Bank, it was interesting to hear that he has used the current wave of redundancies by major insurance and investment firms to increase his network of experienced financial advisors. As he said, the chance to bring on board some highly talented people that would not normally be available to him was too good to pass up, and has enabled him to add some weight to the strategy that he has set out for himself to improve his business in 2009. This was one of the points we made in our recent SMART presentation so it was good to hear of a practical example.

The topic today’s seminar was 'Doing business in a slowing economy' with Terry Irwin of TCii Strategic and Management Consultants, a common enough theme perhaps, but the point that companies need to get back to the basics of financial management in order to survive and thrive in the current market bears repeating again and again. Our hosts Clydesdale Bank also made this point in relation to the fact that their parent company National Australia Bank is currently one of the few banks that is relatively unscathed by the current banking turmoil. Terry Irwin believes that we should hit the bottom of this recession during 2009, with some small signs of recovery starting at the end of 2009 or beginning of 2010. Given the speed that the economy is unravelling, I would agree with his assessment about reaching the bottom, but would suggest that businesses adopt the advice of the Pet Shop Boys regarding opportunities in order to plot their own course to recovery outside of any general economic improvement. Henry’s actions above are good start along this road.