Winter Newsletter 2007

Contents

Adam Evans joins the Jonas team from Hutchinson Consultancy 

The Jonas Team

We were delighted to welcome new recruit, Adam Evans, in August. Adam came to London from our Interim partner Hutchinson Consultancy offices in Wiltshire. He is a keen sportsman, having played cricket for Limpley Stoke Cricket Club and rugby for Combe Down in Bath (both sponsored by Hutchinson Consultancy!) and has now joined Beckenham RFC for the new season. Adam (pictured front row, second from the right) joins Hannah Beesley, Tom Apperley and Owen Tamsitt in our Technical Team.

The Adam interview

Adam answers some searching questions on being a good sport:

Earliest sporting memory: Playing football for Cubs at the age of 7 in the Newcastle Colours. Watching England at World Cup 1990

Sports watched: Live  - England at the Oval, England at Twickenham, England at Wembley, Rudeski at Wimbledon, Arsenal at the Emirates/Highbury, San Diego Chargers at Qualcomm, Minnesota Twins at Sky Dome, LA Dodgers at Dodger Stadium, Combe Down at Hollies Corner, Bath Rugby at the Arms Park and Bristol Rovers at the Mighty Twerton Park.

Sports played: Rugby, Football, Cricket (worst sporting season of my life), Tennis, American Football, Golf, Baseball, Hockey, Skittles, Swimming, Boules, French Cricket, Rounders, Go-Karting, Table Tennis, Badminton, Squash and Gymnastics.

Most memorable sporting moment: Personally, it was winning the League/Cup Double for my old football team and the same with Uni. Hockey Team. As a rugby fan, it was England winning Rugby World Cup in 2003.

Worst sporting moment: Watching England in Germany for the 1/4 final when we lost on penalties to the Portuguese.

Sporting heroes: Ian Wright, Tony Adams, David Campese, Will Greenwood, Thierry Henry and Freddie Flintoff.

Sporting event you would pay the most to see: England v Germany World Cup Final at a rammed Nou Camp and England to win 4-3 in Extra Time with Gerrard scoring a screamer.

And to miss: Womens Ryder Cup Final Round at a miserable Carnoustie.

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Technical management – the big concerns of small companies

Rob Hill is Key Account Director at Jonas Consulting. Thanks go to Roland Froebel for his valuable input.

Whether a huge blue chip manufacturer, a small bakery or somewhere in between, the ultimate goal is to get a product onto the shelves which is ‘safe’ and can be enjoyed by the consumer without risk. The press is constantly full of stories about product recalls, salmonella and the like, and these situations are seen very negatively by the consumer and will have a detrimental effect on both the reputation and bottom line of both retailer and manufacturer.

With the major retailers continuing to strive for quality and technical perfection, it’s no surprise that the manufacturers who supply them have had to become even more vigilant in respect of food safety.  In some situations this has brought its own problems with some new processes being implemented at quite a cost.

In particular, the SME’s of the food manufacturing industry are showing particular concern towards food safety and the amount of legislation to which they have to comply. In a recent poll by the Food & Drink Federation citing the “biggest concerns of SME’s”, 39 per cent felt the compliance to larger amounts of legislation to be the major issue they faced.

Roland Froebel, a technical interim specialist with over 25 years experience working in the food manufacturing industry has his own opinion on this matter. He believes the production of safe, legal products to specification, first time every time and hitting key deadlines is crucial along with driving for pro-activity and innovation.

He said: “The challenges currently faced by technical departments are about finding a balance between customers ‘constant’ and ‘changing’ demands.” 

It seems also that without the proper focussed resource, businesses will never meet these challenges let alone keep abreast of legislative changes. This becomes even more prevalent when we bear in mind that it is not just the law of the land that has to be conformed to but also EU legislation and further afield if exporting outside the EU.  If that wasn’t enough then every retailer has Codes of Practice that constantly change keeping manufacturers on their toes!

It seems that SMEs in this sector must always have a legitimate concern over food safety; it is by constantly striving to meet and exceed customer demands through technical innovation that they can retain their long-term advantage.

 

Food fact #1: Camel's milk doesn't curdle

 

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Production management - a seasonal review

Adam Grainger is the Managing Director of Jonas Consulting.  He joined us in 2002 after six years in IT recruitment, initially as a Senior Consultant. Here he reviews a turbulent summer for the industry and looks ahead to the future.

This summer’s bad weather has resulted in a drop in demand for many seasonal products. Many FMCG manufacturers have experienced a short fall in the amount of products ordered this summer with barbeque manufacturers being hit badly. There is said to be a BBQ mound in the Midlands similar to the sugar mountain!  Salad sales have also been slow and buns have failed to roll off the shelves for bakery companies.

The situation had an impact on retailers too – the first retail casualty came in July when low cost supermarket Kwik Save went into administration. Even Tesco’s chief executive, Sir Terry Leahy, admitted to a ‘challenging’ summer with little growth in food sales. The organisation announced an increase in their half-year profits on non-food items, such as clothes, televisions and cosmetics (up by ten per cent in the last year) and overseas expansion.

At the same time, higher food costs drove up prices in September by 2.7 per cent, according to the British Retail Consortium. Poor crops due to adverse weather earlier in the year led to an increase in the costs of food manufacturing, and higher feed prices are likely to impact on the costs of egg, poultry and meat products in the near future. Further uncertainty from the foot and mouth and recent blue tongue outbreaks may lead to a gloomy autumn for those in the farming and production sectors.

This, of course, has massive implications for manufacturers, who require low unit costs and optimal efficiency to guarantee acceptable profit margins.  At the beginning of the month, Cadbury Schweppes announced the closure of their factory in SW England, with a loss of up to 500 jobs by 2010, to increase efficiency, with production moving to Poland and the Midlands.

But it’s not bad news for everyone – thanks to heavy price cuts, food sales recorded their biggest monthly gain for more than a year in August. and certain sectors such as soft drinks, continue to thrive. As the traditionally buoyant Christmas sales period begins we hope to put the summer behind us, make a toast to new seasonal success and a prosperous new year!

 

Food fact #2: Blueberry jelly bellies were created especially for former president Ronald Reagan

 

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Retail Futures

Last month, the charity Forum for the Future, in association with Tesco and Unilever, produced Retail Futures 2022 - a major report offering insight into the likely picture of the UK retail sector in 15 years time.
The report offers four different visions of the future and throws up key themes that businesses today should recognise and be able to prepare for and capitalise on.

The four scenarios predict consumer behaviour and assess how external factors such as technology and climate change may impact on retailers.

The ‘Do it for me’ scenario sees a buoyant economy where confidence is high and supermarkets use personal customer information to deliver the right foods and daily menus, leaving consumers more time to enjoy leisure pursuits.

In the ‘Do it yourself’ future, individual producers have greater power and trade directly with customers in a high-tech society, with a quarter of consumer spending now occurring online. Large chains have started operating under local brand names, and the big four supermarkets represent just 55 per cent of the market.

‘Going greener’ predicts a less buoyant economy with consumers demonstrating a lack of trust in big corporations and the government, and general uncertainty over climate change. Local produce and UK agriculture is booming, and high street shops are becoming less popular as goods exchanges are established through community activity and online.

In the final vision, ‘Harder times’, consumer confidence is low and small high streets struggle against the supermarket chains which offer efficiency and low cost products, and a wider range of services such as energy supplies, pensions, holidays and funerals. Retail stores are replaced by showrooms, with purchasing taking place online.

Throughout the report key themes emerge: environmental awareness, smart technology further enhancing the purchasing experience and the costs of production. These are major issues that no forward-thinking business should choose to ignore. By focusing on these external forces, ambitious organisations can build their long-term sustainable advantage and meet the changing needs of the environment in which they compete and the evolving needs of their customers.

For more information and to download the report visit www.forumforthefuture.org.uk

 

Food fact #3: The founder of McDonald's has a Bachelor degree in Hamburgerology

 

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Blockbusting Brands

This regular feature takes a look at the rise of a successful brand. This month we focus on Marks & Spencer – a company which has made a significant commercial recovery by remembering its founders’ commitment to corporate responsibility (CSR) and radically updating its ideas for modern day society.

In the late 1990s, many business commentators were predicting a bleak future for Marks & Spencer, one of the nation’s best known brands, with the growing popularity of cut-price products in the high street and on supermarket shelves.

The company, founded in 1884, which operates in over 30 countries worldwide with over 500 stores in the UK, realised that it needed to significantly update its entire outlook in order to survive, and employed Stuart Rose as Chief Executive in 2004.

With the new board in place, the company realised that unless it significantly differentiated itself in a crowded marketplace, it would not survive. It understood that responsible business practice went over and above legal compliance and set about analysing its entire operational impact: from what it owns, to the total footprint of its business through the manufacture, use and disposal of its products.

According to The Sunday Times’ Companies That Count report, the organisation has: “made sustainability and corporate citizenship an integral part of the M&S brand, as well as a key part of its commercial recovery.”

The organisation has met the significant challenges it faced with a CSR strategy that cleverly anticipated the growing consumer concern over climate change, environmental and ethical issues, and big businesses’ responsibility to the society in which it operates. The company’s responsible business practices are guided by three principles:

  • Take care and act responsibly in delivering high quality products and services
  • Create great places to work
  • Help make our communities good places in which to live and work

By focusing on these principles, the company has driven specific initiatives that provide vital innovation, differentiation and competitive advantage throughout the business. Specific campaigns include sustainable fishing, salt reduction and Fairtrade clothing. In 2006, M&S launched the ‘Look behind the Label’ campaign, highlighting their ethical activities to their customers and wider stakeholder, and by implication asking consumers to question the activities of their rivals.

This year, M&S launched the high profile ‘Plan A’ strategy to become carbon neutral by 2012 setting itself a visible target to demonstrate commitment rather than rhetoric.

As a consequence, M&S went on to win the Company of the Year award in the Business in the Community’s Awards for Excellence, in both 2004 and 2006 – heralding a return to form for one of the nation’s best loved brands.

Marks & Spencer has clawed back significant commercial recovery using innovative CSR policies covering a company-wide range of activities, and has re-established itself as one of the UK’s most significant brands.

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Client case study: Dairy Crest

The challenge

Major dairy company, Dairy Crest, urgently needed a factory general manager to lead a major site across a period of significant change. Frustrated by the poor standard of applications, they called in Jonas Consulting.

The solution

Jonas Consulting identified the key skills required by the right candidate and briefed and interviewed selected contacts to assess their technical competencies and the potential cultural fit with the client.

A shortlist of four candidates was provided to Dairy Crest for a three-stage interview, overseen by Jonas Consulting, and the successful candidate was chosen.

The feedback

Andy Stenton, successful candidate, said: "I found Jonas to be professional and courteous throughout the recruitment process. The role of general manager at Dairy Crest Frome has more than met my expectations in seeking a career with a dynamic, forward-thinking organisation."

Simon Pederson, hiring manager, said: "I was struggling to recruit for a general manager position. I called Jonas who, within a very short time, was able to put forward a list of excellent candidates. One of those was appointed and within his first three months has made a significant difference to our business."

 

Food fact #4 The onion is named after a Latin word meaning large pearl

 

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More holiday please, we’re British

by Scott Hutchinson, Hutchinson Jonas Group

I remember a time when ‘flexible working’ was considered to be the refuge of the professional shirker. These days, in a world where the 9-5 has evolved into the 24/7, it’s the carrot being dangled in front of staff in search of the elusive ‘work-life balance’.

The amendment to the Working Time Regulations by the Department of Trade & Industry increases the minimum statutory holiday entitlement from 20 to 28 days per year. Phased in in two stages - from 20 to 24 days in 1 October 2007 and to 28 days from 1 April 2009 – it is the latest attempt by the Government to protect employees from the long-hour culture that threatens to cause a workplace stress epidemic.

A happy workforce is a productive one and by increasing holiday entitlement the Government is making a big investment in its biggest asset. It’s a positive step, and I think also a brave one when so much manufacturing has already moved to countries with cheaper workforces taking fewer holidays.

An independent study of working hours published by the Department of Trade & Industry found that those working the longest hours in the UK are men aged 30-49 with children and employed in the private sector. Unlike other EU countries, where people working long hours are most likely to be found working in hotels and restaurants, in the UK they are more commonly found in manufacturing.

Is the new holiday allocation going to be enough to protect workers from being overworked? No, I don’t think so. Work-life balance is much more than a single piece of legislation. Currently, family is still core to the issues surrounding work-life balance but it’s important not to alienate those without young families.

Flexible working can benefit all workers - I have colleagues who have taken career breaks or opted for flexible working hours and interim contracts so they can travel, study or care for elderly parents – something that’s only going to increase if you look at the demographics about our ageing population.

As with most new legislation, it’s the small businesses that will be the most affected – change costs money. There will be more work to cover which will put additional strain on limited resources but I believe they will soon begin to reap the benefits of a happy workforce. In fact, over the past few years it is often small businesses with progressive working environments promoting a work-life balance, such as Green & Blacks and Innocent, which have generated loyalty and core brand values that have been so incredibly successful in food manufacturing.

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Jonas antics – photos from our Marbella trip

Jonas Consulting left behind the grey London summer for Spanish sunshine in August. The team enjoyed some well-deserved sunbathing, sangria and siestas in Marbella and came back tanned and ready to take on a busy autumn of recruitment!

Photo from our Marbella trip

Photo from our Marbella trip

Photo from our Marbella trip

And finally

“We always overestimate the change that will occur in the next two years and underestimate the change that will occur in the next ten. Don’t let yourself be lulled into inaction.” Bill Gates

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