Up a Gantry - the final frontier - saving carbon

Leon Labovitch with colleague at a sand quarry near Jodrell Bank in Cheshire

Everyone is talking about 'carbon emissions' – but what does it really mean? Is this just the domain for PhD chemists, or can carbon emissions be understood by everyone? Importantly how do you engage a whole industry in the need to cut carbon?

The answer comes from a major project won by Labovitch Consulting at The Carbon Trust. Here we have been leading a change programme to 'engage' an industry in cutting carbon emissions.

A two stage method was developed:

• First identify how much energy can be saved across the industry. The Carbon Trust commissioned Boston Consulting Group to produce an industry strategy and developed a Toolkit showing where energy can be cut
• Second, engage with industry players and work with them to implement carbon savings. We helped design and develop a ground breaking film showing how to cut back on energy and then used engagement consultants and the toolkit to run energy saving workshops across the industry

A vital part of engagement is to sell the benefits – in this case its energy and cost savings, and then carbon savings will follow.

The result? The programme is a great success with the major aggregate companies running 'carbon engagement' programmes. This emphasises the important skills of change management consultants - good business sense, strong powers of analysis, highly creative and well developed emotional intelligence.

www.labovitch.co.uk

Culture Vulture – What's in a psychometric test?

Culture, character, charisma can all be assessed through psychometric testing. But how useful are such tests in change programmes? You may need to understand the cultures of two merging organisations or put together highly effective teams or recruit specialist staff. That's where such diagnostics can be so useful.

Labovitch Consulting is skilled and qualified in all major psychometric tests. So let's examine themes which run through them.

1. Relationships with people – controlling, independent, outgoing, socially confident, modest, caring
2. Thinking style – 'data rational' , artistic, traditional, change oriented, conceptual
3. Energy – active, relaxed, worrying, optimistic

The right combination of traits can bring together the right blend of people. Tests should be run in combination with personal interview to select the right individuals for a project team.

A particularly useful battery is known as the Organisation Cultural Inventory or OCI. This divides an organisation into 'constructive' and 'defensive' styles. As you can imagine, the constructive organisation values achievement and self actualisation, whereas a defensive organisation struggles with conventional and avoidance behaviour. Where would you prefer to work?

Lastly The 'Mettle Culture Gauge' is used to measure your organisation's current culture and how it is limiting or enhancing your ability to perform.

The so called 'core' criteria should be present in all organisations and include:

• Principled - holding true to values, even in adversity
• Purposeful - staff see themselves as the cause, not the victim of outcomes
• Composed - strong sense of self worth held independently of external circumstances
• Open - congruent and transparent – what you see is what you get – trustworthy
• Humble - balanced view of the world, no need for self aggrandisement

While big egos are a fact of life in The City, a fair dose of humility might have averted the excesses and recent collapse of the banking system - and very nearly - the world economy.

Please contact us to talk through cultural issues at leon@labovitch.co.uk

Turnaround - must distress lead to failure?

Market conditions are taking their toll on large and small businesses. In today's market, banks as creditors are often moving straight to a liquidation scenario, rather than opting for recovery. The option to arrest a business's demise and create value for the organisation should always be of paramount consideration.

The task of managing the required change may be beyond the owner's skill set or too much emotional sentiment may preclude the owner from taking the tough 'business saving decisions'.

Below is the suggested course of action for turnaround and recovery.

1. Review and Assess the Present Situation

In a business turnaround it is important to understand fully the starting position. Management accounts, the sales order book, financial arrangements, internal controls, customer service levels, quality and leadership skills are typical areas that will require evaluation and a view taken on.

2. Develop Plans and Business Strategy

After assessing what is required to be changed for the business turnaround to be successful, it will be necessary to develop robust plans and strategy that will achieve success.

Without doubt it will be necessary to comprehensively document the actions to be taken, the timings, the financial impact of those actions and to obtain ‘buy-in' from the business owner.

3. Communicate With Key Employees

For the business turnaround to gain momentum it will be necessary to meet with managers and key personnel.  The current business affairs should be explained and the consequences of not taking corrective action should be made known.

5. Meet the Bank

The bank and other parties with a financial investment in the business should be advised of the business turnaround plans.  If possible meetings should be arranged to discuss the plans and to seek assurances of continued, and maybe, more support for the business.

6. Meet Customers

Dependent upon the severity of the situation within the business it may be necessary to reassure key customers of the business turnaround plans and the benefits that will accrue for them.

This action should be considered mandatory if the cause of the business demise has been poor customer service, poor quality product or any other matter not meeting the expected/agreed customer satisfaction levels.

7. Meet Suppliers

Re-establishing trust will be critical.  Negotiating new or even the continuing existing payment terms from a weak position will be difficult, however, all promises made should be honoured or if failure is imminent inform the vendor in advance of how any debt will be discharged.

8. Cash Conservation

Review and improve if necessary the credit management procedures.  If possible negotiate extended payment terms to suppliers; examine thoroughly all unused assets of the business and liquidate if necessary.

9. Implement New/Update Systems and Procedures

A thorough review of existing systems and procedures will be required to meet the goals of the business turnaround plan. Implement change if necessary; it will be noteworthy to recall that a continuation of old practices will almost certainly result in the same old results.

10. Monitor, Measure and Take Action

Throughout the business turnaround process, results should be regularly measured against plan and corrective actions taken if required.  Key performance indicators (KPIs) should be determined that will give a snapshot of the business performance and be available on a daily, weekly or monthly basis.

The KPIs should include financial and non-financial measures and reflect the important aspects of the business that will determine success or failure.