M Institute

Modernising business processes research paper

Formalising what may previously have been ad-hoc business processes is a key issue when differentiating medium-sized organisations from small ones. Yet figuring out which processes need to be formalised or modernised, and in what priority, is a difficult task for leaders of medium organisations.

Modernising business processes is a new white paper from M Institute that seeks to provide some fresh thinking on the business process challenges that medium organisations face so that they are better equipped to make the judgements on how to develop and grow in a way that takes advantage of their growing maturity in the exploitation of technology, innovation and new opportunities in the business landscape.

Green issues climb medium corporate agenda

As large enterprises jump on the sustainability bandwagon, is it time for medium companies to engage on green issues? M Institute correspondent Joe Lickens looks at some corporate announcements to see how much is for real, and how much is flim-flam.

For those who were unsure of the need for decisive action against climate change, last year’s Stern Review was pivotal. At last, the potential ramifications of climate change were spelled out in business terms – as “the greatest and widest-ranging market failure ever seen”. Public pressure on businesses mounted accordingly. But, while some companies are adopting green strategies that are genuinely impressive, others are still dragging their heels.

Since the issue of climate change was finally admitted to the corporate agenda, the pace with which it has risen up the priority list is remarkable. In the most recent Ipsos Mori poll, eighty percent of respondents said that a company’s environmental reputation would affect their purchasing decisions. As M Institute co-founder and chairman, Paul Druckman points out, “You can take competitive advantage by showing that you are becoming a greener company.” Druckman is involved in a number of initatives exploring how organisations will account for sustainability issues.

Which regulatory burdens are the most tiresome?

87% of UK businesses believe that reducing regulation should be on the government agenda, according to the ICAEW Enterprise Survey Report 2007. Furthermore, over a third of businesses think this should be the top priority for government action to improve the business environment. But which regulations are most burdensome for medium business? M Institute knowledge partner, the ICAEW, has done research on this.

Across all sizes of business, employment legislation and health and safety regulations are the most likely areas to be considered troublesome, with 15% of businesses singling each out as the biggest administrative burden they face. However, it appears that employment legislation may be getting less onerous: in the 2006 survey, 28% of businesses pointed to it as the biggest administrative burden.

Unfortunately, this change is not reflected in the response of medium-sized businesses, of which 26% still identify employment legislation as their single biggest administrative burden. The report suggests that this may be because they "are starting to build up a significant workforce but may not yet have the critical mass for an established HR function".

Health and safety regulations and VAT are the two next most burdensome requirements for medium business, identified by 19% and 13%, respectively, as the biggest administrative burden. At the other end of the scale, business taxation and planning regulations are two areas in which medium businesses are considerably less concerned.

Aside from the 34% of medium business that believes reducing regulation should be the government's top priority for improving the business environment, 19% thinks improving the skills and qualifications of the UK population is most important and 12% thinks lowering interest rates should take precedent.

UK drifts to 11th in competitiveness league table

The UK slipped nine places to the eleventh spot on the closely-watched table of global competitiveness put forward last week by the respected World Economic Forum (WEF). United States regained the top spot, despite the current turbulence in its economic performance, thanks to its ability to innovate and the efficiency of its markets. M Institute co-founder Jyoti Banerjee checks out the league tables in competitiveness.

Coming 11th out of 131 competing countries does not sound too bad – probably a better performance than the collective achievement of the highly-paid elite that make up England’s football team. What is disappointing is the basis for the fall from second to eleventh place. According to the Global Competitiveness Report for 2007-08, four of the most problematic factors in doing business in the UK are tax rates, tax regulations, an inadequately educated workforce and inefficient government bureaucracy.

Just take a moment and read that list again. In every instance, the finger of blame points to one culprit, the government.

Now that’s disappointing.

It was only in February that this blog pointed to the deterioration in the UK’s tax environment, as we slipped from 7th to 13th spot in the WEF’s tax competitiveness league. Less than a year later, we are being told that tax has become one of the biggest problematic factors in doing business.