At a speech this week on giving people trust and freedom (key components of creating a great workplace) I was asked how that fitted with the MPs expenses scandal? We were just down the road from parliament at Millbank and the questioner wanted to know if this is what happened when you trusted people.
My answer was that trust needs to be combined with transparency. It is unlikely that they would have made such extravagant claims if they had known the details would be published. Or will in the future, now that they know the details will be available to all.
Indeed that is a possible solution for all companies. Instead of complex expenses rules you could have one that simply stated: “Claim what is reasonable, but be aware the details will be available for anybody in the company to see, on the intranet.”
The common complaint of MPs has been that their salaries have not been allowed to rise and so they have had to rely on the expenses allowance as effective income. A quick check of the facts shows this to be total nonsense. In 1983 the MPs’ salary was £14,500. If it had kept pace with inflation, it would now stand at £32,180. If it had increased in line with average earnings the salary would now be £51,952. In fact they are now paid £64,766 a year. So they earn over three times median earnings (revealed by the TUC this week as £19,600) and have had rises over the last 25 years well in excess of most people.
Friday, 29 May 2009
Fancy a Jog from Birmingham to London?
I met up with my sister at the weekend after she ran from Birmingham. Now I wouldn’t mind cycling from Britain’s second city to London. But running along the canal, through the night, is a whole different achievement. 148 miles in total, taking just under 40 hours – and you get disqualified if you take a break of 40 minutes or more.
As the web site (http://www.gucr.co.uk/), this is Britain's longest, toughest, non-stop running race. I met Lindsey in Southall (there was a 4 mile diversion from the canal), 135 miles in and found her a little bit down. But we remembered the classic Lance Armstrong line (“Pain is temporary, quitting is forever”) and she was soon back on track.
A remarkable achievement. I wonder what she will do next?
As the web site (http://www.gucr.co.uk/), this is Britain's longest, toughest, non-stop running race. I met Lindsey in Southall (there was a 4 mile diversion from the canal), 135 miles in and found her a little bit down. But we remembered the classic Lance Armstrong line (“Pain is temporary, quitting is forever”) and she was soon back on track.
A remarkable achievement. I wonder what she will do next?
Thursday, 30 April 2009
Richard Branson, This Time you are Wrong
Richard Branson has stated his opposition to the new 50% tax rate, for those earning more than £150,000, claiming it will be a "block on the next wave of entrepreneurs".
The reality is that, of the hundreds of thousands of entrepreneurs in the UK, very few pay themselves over £150,000 or even aspire to. If an entrepreneur makes a fortune it is from the sale of their company. The most successful one I know was shocked not by how much tax they paid when they sold up, but by how little. After the Brown-Blair tax reforms of 2001 the amount he paid on the tens of millions he received was just 18% - less than the lowest income tax band, paid if you earn just £15,000 a year.
Opponents of the 50% tax seek to focus on the cuddly entrepreneur because they know the public will have little sympathy for the professions who actually are the highest-paid. These are bankers, accountants, lawyers and consultants. And I would be surprised if Branson sees those professions as the ones that drive innovation and enterprise in the UK.
The reality is that, of the hundreds of thousands of entrepreneurs in the UK, very few pay themselves over £150,000 or even aspire to. If an entrepreneur makes a fortune it is from the sale of their company. The most successful one I know was shocked not by how much tax they paid when they sold up, but by how little. After the Brown-Blair tax reforms of 2001 the amount he paid on the tens of millions he received was just 18% - less than the lowest income tax band, paid if you earn just £15,000 a year.
Opponents of the 50% tax seek to focus on the cuddly entrepreneur because they know the public will have little sympathy for the professions who actually are the highest-paid. These are bankers, accountants, lawyers and consultants. And I would be surprised if Branson sees those professions as the ones that drive innovation and enterprise in the UK.
Tuesday, 14 April 2009
Worlds Most Democratic Workplaces
Happy has today been listed as one of the most democratic workplaces in the world. Although there are 40 companies on the list, organised by WorldBlu, Happy is one of only two in the UK:
http://www.worldblu.com/worldblu-list?company=happy
So what makes a democratic workplace? Does it mean all staff vote on everything? Of course, if we use our standard model of democracy it would mean the staff electing the company's leaders once every 5 years and then leaving all decisions to them!
I've never actually described Happy as a democracy, especially as certain principles (such as training Being based on involvement) are not up for discussion. To the extent that we are democratic, its because it makes for a better business.
Its About involvement
We don't involve everybody in every decision but we do seek to involve people in decisions that affect them. Its common sense. That way you tend to get better decisions and you certainly get more commitment to them.
So when we were getting ready to move to our current site, we took everybody there to decide whether it was the right place. The vote was unanimous and so, despite it adding 20 minutes to the commute of most staff, there was total commitment to the move and we didn't lose anybody.
Now the question is whether to go to the conference for those inspiring companies who made the list. Is it a good use of funds in the current climate? We're going to put it to a vote.....
http://www.worldblu.com/worldblu-list?company=happy
So what makes a democratic workplace? Does it mean all staff vote on everything? Of course, if we use our standard model of democracy it would mean the staff electing the company's leaders once every 5 years and then leaving all decisions to them!
I've never actually described Happy as a democracy, especially as certain principles (such as training Being based on involvement) are not up for discussion. To the extent that we are democratic, its because it makes for a better business.
Its About involvement
We don't involve everybody in every decision but we do seek to involve people in decisions that affect them. Its common sense. That way you tend to get better decisions and you certainly get more commitment to them.
So when we were getting ready to move to our current site, we took everybody there to decide whether it was the right place. The vote was unanimous and so, despite it adding 20 minutes to the commute of most staff, there was total commitment to the move and we didn't lose anybody.
Now the question is whether to go to the conference for those inspiring companies who made the list. Is it a good use of funds in the current climate? We're going to put it to a vote.....
Thursday, 2 April 2009
Listen to the Protestors
I joined the G20 demo in London on Saturday (March 28th). I was struck first by the energy and sense of fun. Though that was partly because I found myself alongside the drumming band Rhythms of Resistance. But also the geneuine sense that another way was possible. I especially like the philosphy of 'tactical frivolity' - we could do with a bit more that in the business world!
These demonstrations have been taking place for a decade, since Seattle, and as I marched I was struck by how they had been proved right. An appropriate chant would have been "We were right, you were wrong."
The world leaders, with the IMF and World Trade Organisation, placed total faith in markets, in deregulation and in financial systems. They were wrong, disastrously wrong.
They may dismiss the demonstrators as weird or whatever, but there are many more sensible proposals for how the world should be run in the alternatives on offer here. The best thing the G20 could do? Invite the demonstrators in and listen to the view from the other side. Its certainly better than listening again to the same old people who got it wrong last time.
These demonstrations have been taking place for a decade, since Seattle, and as I marched I was struck by how they had been proved right. An appropriate chant would have been "We were right, you were wrong."
The world leaders, with the IMF and World Trade Organisation, placed total faith in markets, in deregulation and in financial systems. They were wrong, disastrously wrong.
They may dismiss the demonstrators as weird or whatever, but there are many more sensible proposals for how the world should be run in the alternatives on offer here. The best thing the G20 could do? Invite the demonstrators in and listen to the view from the other side. Its certainly better than listening again to the same old people who got it wrong last time.
Sunday, 15 March 2009
A Parable of Management
It was management guru Peter Drucker who said: “So much of what we call management consists of making it difficult for people to work”
This parable, which a colleague sent me, is a great illustration of this:
http://www.slideshare.net/fforfaisal/the-ant
Or, if you haven't got time to see the presentation, here is the transcript
The Ant ... A Fable ... Or Maybe Not
Every day, a small ant arrives at work very early and starts work immediately.
She produces a lot and she is happy.
The Chief, a lion, was surprised to see that the ant was working without supervision.
He thought if the ant can produce so much without supervision, wouldn’t she produce even more if she had a supervisor!
So he recruited a cockroach who had extensive experience as supervisor and who was famous for writing excellent reports.
The cockroach’s first decision was to set up a clocking in attendance system.
He also needed a secretary to help him write and type his reports and …
... he recruited a spider, who managed the archives and monitored all phone calls.
The lion was delighted with the cockroach's reports and asked him to produce graphs to describe production rates and to analyse trends, so that he could use them for presentations at Board‘s meetings.
So the cockroach had to buy a new computer and a laser printer and ...
... recruited a fly to manage the IT department.
The ant, who had once been so productive and relaxed, hated this new plethora of paperwork and meetings which used up most of her time…!
The lion came to the conclusion that it was high time to nominate a person in charge of the department where the ant worked.
The position was given to the cicada, whose first decision was to buy a carpet and an ergonomic chair for his office.
The new person in charge, the cicada, also needed a computer and a personal assistant ,who he brought from his previous department, to help him prepare a Work and Budget Control Strategic Optimisation Plan …
The Department where the ant works is now a sad place, where nobody laughs anymore and everybody has become upset...
It was at that time that the cicada convinced the boss , the lion, of the absolute necessity to start a climatic study of the environment .
Having reviewed the charges for running the ant’s department , the lion found out that the production was much less than before.
So he recruited the owl , a prestigious and renowned consultant to carry out an audit and suggest solutions.
The owl spent three months in the department and came up with an enormous report , in several volumes, that concluded : “ The department is overstaffed ...”
Guess who the lion fires first?
The ant , of course, because she “showed lack of motivation and had a negative attitude".
Adapted from Portuguese by PR. Obrigado Mário.
This parable, which a colleague sent me, is a great illustration of this:
http://www.slideshare.net/fforfaisal/the-ant
Or, if you haven't got time to see the presentation, here is the transcript
The Ant ... A Fable ... Or Maybe Not
Every day, a small ant arrives at work very early and starts work immediately.
She produces a lot and she is happy.
The Chief, a lion, was surprised to see that the ant was working without supervision.
He thought if the ant can produce so much without supervision, wouldn’t she produce even more if she had a supervisor!
So he recruited a cockroach who had extensive experience as supervisor and who was famous for writing excellent reports.
The cockroach’s first decision was to set up a clocking in attendance system.
He also needed a secretary to help him write and type his reports and …
... he recruited a spider, who managed the archives and monitored all phone calls.
The lion was delighted with the cockroach's reports and asked him to produce graphs to describe production rates and to analyse trends, so that he could use them for presentations at Board‘s meetings.
So the cockroach had to buy a new computer and a laser printer and ...
... recruited a fly to manage the IT department.
The ant, who had once been so productive and relaxed, hated this new plethora of paperwork and meetings which used up most of her time…!
The lion came to the conclusion that it was high time to nominate a person in charge of the department where the ant worked.
The position was given to the cicada, whose first decision was to buy a carpet and an ergonomic chair for his office.
The new person in charge, the cicada, also needed a computer and a personal assistant ,who he brought from his previous department, to help him prepare a Work and Budget Control Strategic Optimisation Plan …
The Department where the ant works is now a sad place, where nobody laughs anymore and everybody has become upset...
It was at that time that the cicada convinced the boss , the lion, of the absolute necessity to start a climatic study of the environment .
Having reviewed the charges for running the ant’s department , the lion found out that the production was much less than before.
So he recruited the owl , a prestigious and renowned consultant to carry out an audit and suggest solutions.
The owl spent three months in the department and came up with an enormous report , in several volumes, that concluded : “ The department is overstaffed ...”
Guess who the lion fires first?
The ant , of course, because she “showed lack of motivation and had a negative attitude".
Adapted from Portuguese by PR. Obrigado Mário.
Friday, 13 March 2009
Happy Becomes Carbon Neutral
I'm delighted that my company Happy has just achieved the status of being Carbon Neutral, based on reducing our energy use - and then offsetting what is left. TrainingZone has asked me to write 10 tips on reducing your company's carbon impact so here they are:
10 Tips for Reducing Your Carbon Impact
We are all aware of the threat of global warning and its easy to feel the problem is too big for us to do anything about it. However all our businesses contribute and we can all do our bit to reduce our carbon impact. The good news is that most of the steps result in lower costs or more engaged staff. Morrisons, for example, has saved £3.4 million a year by reducing its energy use.
1 – Measure It
The first step is to find out what your carbon impact is, and which areas of the business are causing it. We used www.co2balance.com, at very reasonable cost. The Carbon Trust can also be very helpful, often for free.
2 – Turn Equipment Off
A single computer left on permanently can cost over £30 a year. Several dozen left on overnight are not only a waste of energy but a considerable waste of money too, and the cost soon adds up. Ours turn off automatically if not in use. O2 reduced its electricity use by 15% simply by ensuring heating and air conditioning was turned off when buildings were empty.
3 – Install Low Energy Light Bulbs
An old fashioned light bulb can use as much energy as a computer. The easiest way to reduce energy use, and electricity bills, at home is to ensure all your light bulbs are low energy. The same is true at work, though it may be harder work to find the low energy versions. And turn those lights off when not needed.
4 - Source Energy Renewably
One of Dell’s steps to carbon neutrality was to invest directly in wind energy but most of us have to rely on the existing electricity suppliers. All the mainstream companies offer green alternatives, with Scottish and Southern now sourcing 11% from renewable. Then there are specialists like Green Energy, EcoTricity and Good Energy, who are 100% renewable. The cost may be a bit more but as well as getting a warm feeling for doing good, you also avoid the government’s energy tax.
5 - Reduce Car & Aeroplane Use
Encourage car sharing, trains and bicycles. Explore teleconferences instead of air travel. Use the government scheme which provides your staff with new bicycles at up to half price. It doesn’t cost you a penny but does give you the benefit of fitter, healthier staff.
6 – Make Your IT Greener
Data centres and IT generally can be a major part of a company’s energy use. There are complex issues involved, but technology like thin client and virtualisation can have a big impact. Get your techies to check it out .
7 - Set up an Office Recycling and Reuse Scheme
Not just for paper, but also for card, cans, plastic cartons, cups – and also mobile phones and tonner cartridges. And ensure, wherever possible, you buy paper and other products from recycled and sustainable schemes.
8 - Engage Your Staff
Get your people activity involved. Set up green teams to find ways to reduce your energy use. Our Green Group came up with a range of changes. For instance, switching from paper towels to Dyson power dryers saved us £800 a year.
9 - Green your Supply Chain
Work with your suppliers. Simply including a question in your procurement, about carbon reduction plans and offset commitments, will get people thinking about the issues.
10 - Offset What's Left
The above steps will reduce your carbon impact but there will be some left. To be carbon neutral you can offset this by paying for projects which save as much carbon as you use. At Happy we’ve been unofficially doing this by endowing rainforest since 1991. This time we used the www.co2balance.com project Rhino Ark, a conservation charity which helps build energy saving stoves that reduce the need for firewood by 70%. This conserves the woodland and wildlife habitat that live in and around the Aberdale National Park in Kenya.
This will make your company officially Carbon Neutral. As I’ve said its not only good for the planet but it makes business sense. It saves money, increases staff loyalty, gives a positive picture of the business and helps with answering those government procurement questions on your impact on the environment.
10 Tips for Reducing Your Carbon Impact
We are all aware of the threat of global warning and its easy to feel the problem is too big for us to do anything about it. However all our businesses contribute and we can all do our bit to reduce our carbon impact. The good news is that most of the steps result in lower costs or more engaged staff. Morrisons, for example, has saved £3.4 million a year by reducing its energy use.
1 – Measure It
The first step is to find out what your carbon impact is, and which areas of the business are causing it. We used www.co2balance.com, at very reasonable cost. The Carbon Trust can also be very helpful, often for free.
2 – Turn Equipment Off
A single computer left on permanently can cost over £30 a year. Several dozen left on overnight are not only a waste of energy but a considerable waste of money too, and the cost soon adds up. Ours turn off automatically if not in use. O2 reduced its electricity use by 15% simply by ensuring heating and air conditioning was turned off when buildings were empty.
3 – Install Low Energy Light Bulbs
An old fashioned light bulb can use as much energy as a computer. The easiest way to reduce energy use, and electricity bills, at home is to ensure all your light bulbs are low energy. The same is true at work, though it may be harder work to find the low energy versions. And turn those lights off when not needed.
4 - Source Energy Renewably
One of Dell’s steps to carbon neutrality was to invest directly in wind energy but most of us have to rely on the existing electricity suppliers. All the mainstream companies offer green alternatives, with Scottish and Southern now sourcing 11% from renewable. Then there are specialists like Green Energy, EcoTricity and Good Energy, who are 100% renewable. The cost may be a bit more but as well as getting a warm feeling for doing good, you also avoid the government’s energy tax.
5 - Reduce Car & Aeroplane Use
Encourage car sharing, trains and bicycles. Explore teleconferences instead of air travel. Use the government scheme which provides your staff with new bicycles at up to half price. It doesn’t cost you a penny but does give you the benefit of fitter, healthier staff.
6 – Make Your IT Greener
Data centres and IT generally can be a major part of a company’s energy use. There are complex issues involved, but technology like thin client and virtualisation can have a big impact. Get your techies to check it out .
7 - Set up an Office Recycling and Reuse Scheme
Not just for paper, but also for card, cans, plastic cartons, cups – and also mobile phones and tonner cartridges. And ensure, wherever possible, you buy paper and other products from recycled and sustainable schemes.
8 - Engage Your Staff
Get your people activity involved. Set up green teams to find ways to reduce your energy use. Our Green Group came up with a range of changes. For instance, switching from paper towels to Dyson power dryers saved us £800 a year.
9 - Green your Supply Chain
Work with your suppliers. Simply including a question in your procurement, about carbon reduction plans and offset commitments, will get people thinking about the issues.
10 - Offset What's Left
The above steps will reduce your carbon impact but there will be some left. To be carbon neutral you can offset this by paying for projects which save as much carbon as you use. At Happy we’ve been unofficially doing this by endowing rainforest since 1991. This time we used the www.co2balance.com project Rhino Ark, a conservation charity which helps build energy saving stoves that reduce the need for firewood by 70%. This conserves the woodland and wildlife habitat that live in and around the Aberdale National Park in Kenya.
This will make your company officially Carbon Neutral. As I’ve said its not only good for the planet but it makes business sense. It saves money, increases staff loyalty, gives a positive picture of the business and helps with answering those government procurement questions on your impact on the environment.
Subscribe to:
Posts (Atom)
Posts
