Archive for the ‘Uncategorized’ Category

You are only as good as your employees!

Wednesday, January 25th, 2012

On my last trip to London, I was presented with two very stark reminders of this well used, but often forgotten, phrase:  You are only as good as your employees!  Both situations reflected very poorly on the respective companies.

My trip, a dinner with my ex-Ernst & Young colleagues, met with an inauspicious start.  As I emerged from London Bridge Tube Station I bumped (literally) into a ’top London attraction’ rep physically fighting with one of their competitor’s reps.  Given their respective statures it was like a scene from Laurel and Hardy!  This was a unedifying encounter, and reflected very poorly on their respective company’s brand (especially as both had the company logo on their chests) and it left me wondering what their employer’s would have thought?

Fortunately dinner with my friends was far more amiable but I was shocked to learn that after 20 year’s of dedicated service they received nothing, not even a thank you email from their employer.  Is there not a direct correlation between employee loyalty and business profitability and success?  Much is done to retain customer loyalty and the cost of selling to a customer versus the cost of winning a new customer is well understood, but do the same principles not apply to employees?  Don’t get me wrong, they weren’t complaining, and weren’t expecting any recognition.  Clearly this is the way big firms run, but I couldn’t  help but feel a little sorry on their behalf that their loyalty wasn’t recognised.

Mike O’Connell, CEO, Isosceles Finance

 

Central England on the Road to a Low Carbon Future

Tuesday, January 24th, 2012

The prospect of electric vehicles on our motorways in the next few years seems to be nearing, whereas the manufacturing of wind turbines and solar panels has largely been the province of foreign countries, with electric cars the UK might be able to benefit economically.  Towns like Gaydon (Aston Martin) and Oxford (Rover) have a deep heritage in the car industry and we still have numerous centres of excellence like Maclaren’s technology centre in Woking - the future of the electric car and the hydrogen economy looks potentially rosy for English manufacturing and its component suppliers. The CABLED initiative, a major trial of electric cars, is ongoing in Coventry and Birmingham (http://cabled.org.uk/), and the UK’s first hydrogen refuelling centre has been operational since 2008 at the University of Birmingham. If the impetus is maintained then UK PLC could be a major beneficiary from low carbon vehicles and could be a driver for inward investment.

Jeremy Thomas, Renewable Consulting Practice, Isosceles

What’s the Cheapest Type of Electricity?

Tuesday, January 17th, 2012

This is not a trick question, you might say Nuclear Power generation or even Combined Cycle Gas Turbine generation (if you take issue with what the true long-term costs of nuclear decommissioning and fuel storage actually is), but the real answer is neither of those, it’s energy efficiency, simply saving energy can often be implemented at low or even no cost by energy consumers, but until relatively recently it’s not been tackled in a serious fashion.

The EU plans to improve its energy efficiency by more than 20% by 2020. In other words, 20% less energy will be used by then, according to the plans determined by the EU. If we look at the baseline in 2010 the primary energy consumption of the EU was 1772 Mtoe. So by 2020 we can expect this figure to go down to 1416 Mtoe. Substantial steps have been taken towards this objective – notably in the appliances and buildings markets. Nonetheless, recent Commission estimates suggest that the EU is on course to achieve only half of the 20% objective unless it takes action in other areas. Meanwhile the USA has the potential to reduce annual energy consumption by approx 22 percent by 2020, eliminating more than $1.0 trillion in costs.

Whether or not the plans are achieved, the cheapest form of energy will probably be energy efficiency for some time yet.

Jeremy Thomas, Renewable Consulting Practice, Isosceles

When is the RIGHT time to outsource accounting?

Tuesday, October 11th, 2011

I am often asked “how will I know if outsourcing my finance and accounts is right for my business?”  This question is akin to “how long is a piece of string?” – there are no hard and fast rules because of the variables of each individual business.  There are however tangible business drivers and it will be one of these which, probably subconsciously, has provoked the questioner to ask this question in the first place.

If you relate to one of the following, now would be the right time to outsource part or all of your finance and accounting function:

  •  Rapidly growing or contracting businesses (quite often wanting to vary the costs of finance and accounting)
  • You want a smaller highly focussed team concentrating 100% on developing great products and services and delivering these profitably – all the other clutter of business you want someone else to take care of.
  • The business cannot afford a full-time Finance Director so the CEO is trying (and often failing) to fulfil this role – whilst also trying to grow the business
  • Lack of, or poor quality, management finance and accounting information
  • Experiencing high rates of staff turnover or skills shortage
  • The business needs to generate operational efficiencies

Incidentally outsourcing doesn’t require firing existing staff and starting again, or binning the in-house finance systems.  At Isosceles we provide our service at our site or yours, on our web-based systems or yours, using your personnel and/or ours.  We also deliver a service tailored to each clients individual requirements – this is not a ‘one service fits all’.

What is the True Cost of an Employee – Part 3

Tuesday, September 13th, 2011

At last here is the final instalment of my What is the True Cost of an Employee?   If you missed it click here is Part 1 and Part 2

What is the true cost of an accountant?

The true cost of a £60,000 accountant is actually closer to £100,000 or £445 per day during their first year.   So what is the cost if you incur all the recruitment and training costs and then you find out after six months that you have recruited the wrong person?

I feel another blog coming on.

(Click here to see table for my full calculations)

 

What is the True Cost of an Employee – Part 2

Tuesday, August 9th, 2011

Here is the next instalment of my What is the True Cost of an Employee?   If you missed it click here is Part 1.

Getting up to speed

In terms of training and induction, the heaviest load will be the first three months.  There is usually a month’s handover with the member of staff being replaced at zero productivity. The cost of getting up to speed is therefore £5,000 (plus NI and loaded costs).

Tools for the job

The cost of office space, rent, rates, service charges, utilities, reception, photocopier, fax, is about £50 per square foot in the South East; an average desk space per person is about 75 square feet per person.  So the cost per annum is £3,750 per person.

Productive time

The other issue that employers fail to take account of is the actual productive time of an employee.  There are 260 working days in the year, however after holidays (say 25 days) bank holidays (8 days) sickness, company meetings, appraisals and training days it is unlikely that there are more than 220 working days.

Employee management

The final issue is what is the cost of managing and developing an employee? This includes the cost of appraisals, setting objectives, informal one-to-one meetings to discuss career aspirations or providing feedback on progress.  This is likely to absorb at least three days of management time (£1,500 cost or £3,000 opportunity cost) across the year and much more than this if issues arise.

Final instalment coming shortly ………

 Mike O’Connell, CEO, Isosceles Finance

What is the True Cost of an Employee – Part 1

Tuesday, July 19th, 2011

When I am in a ‘sales’ situation explaining the benefits of outsourced accounting or a part time FD, one of the thorny issues I have to deal with is the question, “what is the real cost of an employee?”.   In fact, just the process of looking at outsourcing part of a business process is healthy because establishing the cost of an employee is one of the central questions that a business manager needs to know the right answer to.

Once a business manager knows the real cost of an employee they can then answer the even bigger question, “what is the value of my employee?”

Finding the answers to these two questions is not as difficult as one might think, but what may surprise is how cost effective outsourcing some parts of the business really is.

In order to calculate the cost of an employee we need to look at the true cost of employment and the cycle of employment.  First the individual must be recruited and inducted; secondly they must be trained both through formal and on-the-job training; and thirdly there is a period of getting up to speed.  Once up to speed there is the cost of managing that individual, setting objectives, appraising performance against these objectives whilst bearing the burden of personnel and administrative costs of holidays and sickness, etc.

An employee also requires certain tools to do the job. They need a desk, phone, mobile phone computer, software, a network to store documents, a printer and paper to be able to print documents off and general stationery.  Our employee also needs internet access and a clean safe environment in which to work.

Click here for Part 2

 Mike O’Connell, CEO, Isosceles Finance

The First Time Entrepeneur – Part 3

Tuesday, November 2nd, 2010

The First Time Entrepreneur the final instalment ……

The truth is that if £2M results in a net amount saved of say £750K, a £3M sale results in an increase in amount saved of something like £1.6M more than double.  Holding on just a little bit longer can have a much more dramatic effect on wealth.

The other issue of course is that once the sale is concluded it isn’t the case that the entrepreneur sails off into the sunset.  The new acquirer will be squeezing the entrepreneur for the full value of their acquisition.

Our first time entrepreneur needs to take significant comfort from the fact that a potential acquirer has found them, that a credible offer has been made.  If it can happen once by accident it can surely happen again if planned for properly.  Selling a business is no different to selling your best product or service – it is best done through a considered campaign.  An entrepreneur who sells too early or too readily has plenty of time after to rue their decision.  Frustration may eventually drive our first time entrepreneur to do it all again – breaking all those promises made to partners and family – this too can have a dramatic effect on lives.

A second time entrepreneur now there’s a different story…..

Mike O’connell, CEO, Isosceles Finance

Design Inc win Isosceles World Cup

Thursday, July 1st, 2010

 

Here it is then, the morning after the night before, the calm after the storm that was the inaugural Isosceles World Cup. For many this morning there is nothing more than an aching body, a shattered dream, dashed hopes – the empty feeling of what could have been. But for one team there is glory, the chest busting feeling of “we did it” for them the back slapping and team hugging that will probably last well into the weekend.This tournament had all the ingredients of the real thing, great football, controversy, penalties even our very own Frank Lampard moment where new goal-line technology was used – well ok one of the spectators on the sideline.
Fabio, Fabio, Fabio where were you? On show last night were all the qualities necessary to build a world beating team. There was determination, self sacrifice, everywhere individuals ready to lay down their bodies for the glory of their team and more than just a little skill.

For the teams – Celona, Emergent, InsightSoftware.com, Solsis, Line, Design Inc and Isosceles – the pressure was actually off all had qualified and made it safely into the last eight, something England hadn’t managed.

During the group stages the matches were extremely tight; games were pinched by the odd goal here and there. This was demonstrated by the fact that the 3rd/4th and 5th /6th play offs all went to penalties.

The surprise package of the evening were Line Communications, their team newly formed and lacking match practise turned in magnificent performances. Line also won the award for the best turned out team, arriving off their coach in their Line monogrammed three-piece suits. Line also won the award for the best supporters who flew in from the four corners of the earth to support their team and enjoy the evening. I can’t help but feel that Line were mugged somewhat, they were far more competitive and skilful than their final position suggested. They also fired a warning shot to the other teams – with a couple more games under their belt this was going to be a tough team to beat.

Celona coughed and spluttered somewhat never quite igniting the purring engine that lies within their team, in patches they were sublime and in patches lemon and lime. There were rumours of discontent in the camp – Maria falling out with the coach and refusing to play in the final game, but this was shrugged off simply as tiredness in the post match press conference. Celona had travelled a long distance to play in the tournament; their efforts were rewarded in a victory on penalties in their final playoff. Celona’s players could return home with their heads held high.

Solsis arrived full of confidence, having made a few new signings over the summer, we were all slightly intimated by their newly found sponsor Waitrose. The confidence seemed well placed with some particularly good early performances, but in the end their football turned into a Delia Smith recipe all the right ingredients but rather plain. Graham Stead was overheard commenting that next

year they would look at sponsorship from Sainsbury’s, perhaps a Jamie Oliver recipe would add a bit more spice.

Emergent and Insight joined forces to form a new team EmergInsight – sounding like a spin off from the TV show Casualty, but there was nothing A&E about their football. EmergInsight quickly found their rhythm and played some very neat football. Patrick Howard ended up lodging an appeal to the tournament organisers to argue that EmergInsight actually were the winners of the cup since they finished the tournament unbeaten, but then it was discovered that he was in fact a software salesman and the appeal was dismissed on principle.

Then after all of the huffing and puffing, the pump and the grind of the group and playoff stages there were two left standing – Isosceles and Design Inc. This is somewhat of a Germany v England fixture close neighbours who know each other’s players well. The final turned out to be more one sided than many had predicted. Design Inc sported a new centre-forward, Isosceles looked concerned when they found out he was a young Brazilian named Sam Ronaldo Maradona Pele Jesus Zico – but Julian assured our team that he would ” ’ave ‘im”. Design Inc were worthy winners and assured the assembled press that they would accept the cup in a spirit of friendship and humility and that they would keep this low key, they would be unlikely to brag, wave the cup around, put posters on their office door and generally remind Isosceles of their ignominious failure on a daily basis henceforth.

Many congratulations and thanks to all the teams that participated, this was a thoroughly enjoyable event and we appreciate your efforts in coming and sharing the evening with us.

After all the hype, anticipation and excitement, the Isosceles World Cup is over ….until next time

 

Mike O’connell, CEO, Isosceles Finance

World cup fever decends on South Chiswick!

Tuesday, June 29th, 2010

After the disappointment of the warm up game against Germany, the real tournament begins tomorrow evening.  Not the tournament in South Africa, but rather the one in South Chiswick – the Isosceles World Cup.

This truly is a World event with the teams coming from the four corners of the South East.  Tomorrow evening seven teams will pit themselves against each other for the glory of the Isosceles World Cup.  Teams from Emergent Biosystems, Line Communications, Celona, Solsis,  InsightSoftware , DesignInc as well as Isosceles (or the big seven as they are known in world football) will battle it out to be the last team standing.

By quirk of timing this event offers not just a football tournament, but instead the chance of redemption, the opportunity to be cleansed, to wash away the dirt of German superiority that is weighing so heavily on our aching bodies.  The players have the chance to move the way Rooney should have, to shoot the way Frank wanted to, and possibly to save the way that Green didnt.

Roll on tomorrow!