All posts by Procurious HQ

Procurious Big Ideas Panel Discussion #3 – Are Business Costs Too High or Too Low?

Are business costs too high? Or too low? And where does procurement sit in this matter?

The third discussion panel at the Big Ideas Summit 2015 took place in the innovative format of a ‘fishbowl’ discussion, where participants argue both sides of the lead question, but where the audience can also get involved.

The panel started with Chris Lynch, Theano Liakopoulou, Chris Sawchuk and David Noble, gradually interchanging the other thought leaders as the discussion progressed. In an often heated environment, a number of hot topics were raised and some great insights released.

Watch the full discussion here.

See all the keynotes and panel discussions from the Big Ideas Summit, plus Big Ideas from our 40+ Influencers.

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5 Things You Need to Know About Working in Germany

When you think of Germany, pretzels, beer and BMWs are common stereotypes that come to mind. But there is much more to Deutschland than that – especially if you are planning to work.

Reichstag

A country built on research, innovation and its ability to attract foreign direct investment (FDI), with the biggest economy in Europe and the fourth largest in the world – who wouldn’t want the opportunity to work in Germany?

Not only home to many of the European and Worldwide market leaders, recent figures show more than 45,000 foreign companies are also conducting business there. Although many more factors have helped shape German industry, this structure has consequently had deep impacts on the Procurement (Beschaffung) role.

The Need to Know

Procurious founder, Tania Seary, recently had the opportunity to meet the leadership team from the German Association of Materials Management, Purchasing and Logistics (BME) in Frankfurt. BME have established themselves as a professional association for buyers and logistics, supporting members in developing new markets and the configuration of economic processes.

According to BME, there are more than 100,000 procurement professionals working in Germany, so here’s what you need to know if you’re looking to join them:

  1. Germans can be considered the masters of planning

Doing business in Germany without adequate cross-cultural awareness is a risky proposition, and businesses should ensure they carry with them an appreciation of both the business landscape and the culture. Hierarchy is highly valued in Germany, and there are often myriad procedures and policies which can slow things down, so having a bit of patience is crucial to the success of business negotiations.

The desire for orderliness spills over into the business life of Germans – surprises and humour are not welcome! According to the German Business Culture Guide, everything is carefully planned out and decided upon, with changes rarely occurring after an agreement is made.

  1. Get used to some straight talking

There are cultural differences at play. The German business culture is perhaps less instantaneous than in countries like the UK, and personal relationships that are developed slowly over time are seen as a more desirable way to do business. Don’t be surprised if you jump straight into business talk, as there is little time for small talk.

  1. A series of villages, not really a country

Germany is a country with a long history and vast cultural differences throughout. For a country of its size (only 357,000km² – Australia is 21 times bigger), it has 16 states and over 400 districts.

This means you’re going to need to recognise the contrasts across the country, especially as industry is fragmented and big companies operate often in small villages. Although complex, this presents a fantastic opportunity to learn how to work with, and understand, different cultures – a brilliant training ground for future leaders.

  1. If you’re a social media nut – this is a different landscape

By sheer numbers, social media is as popular here as the rest of the world. According to the EU’s “Passport to Trade” more than 75 per cent of all Germans over 14 years of age use the Internet in some way, and 90 per cent of 14 to 29 year olds are on social media.

What is different about social media in Germany is the popularity of the local, German-only networks, in addition to the global players. The most popular networks listed according to their number of users are (get ready – you may not have even heard of some of these):

  • Facebook
  • Google+
  • Xing
  • Wer-kennt-wen
  • MeinVZ/StudyVZ
  • LinkedIn
  • MySpace
  • Lokalisten.

Up until 2009, there were up to 15 million German-speaking users on a German language network resembling Facebook called StudiVZ. But Facebook eventually conquered Germany (as it has for most of the world), as it enabled users to socialise and interact with people outside Germany too.

There is a Russian joke that says:  “Twitter can’t be popular in Germany, because 140 characters are basically two words in German.”  There are certainly enough short words to compose tweets in German, but when you read that only 10 per cent of Germans use Twitter, it makes you think there might be some truth to that joke.

With words like “kraftfahrzeughaftpflichtversicherung” meaning ‘car liability insurance’, and “donaudampfschifffahrtsgesellschaftskapitaenswitwe” meaning ‘widow of a Danube steamboat company captain’, let’s hope Twitter changes to a 15,000-character limit soon!

  1. And your role in procurement…

Procurement is not the only function of choice – it’s one of hundreds – and, if you’re coming from a large multinational corporation, a word you need to understand and add to your vocabulary is “Mittelstand”.

We often throw in terms like MNCs and SMEs (small and medium-sized enterprises) around when asked who your employer is, but statistically what is the real difference?

Statistically, any business with fewer than 500 employees is classed as an SME. However, in Germany this would mean that 99 per cent of businesses would fall into this category.

So the Germans created the world “Mittelstand”, which can refers to both SMEs and much larger companies, if they are run in the same spirit. This typically means the owner or owners take business decisions largely on their own, but retain close ties with both the business and the employees.

This involvement with the business applies to over 3.6 million “Mittelstand” companies, providing more than 60 per cent of all jobs in Germany, and making up 53 per cent of the country’s GDP. So the chances are you’ve already conducted business with a potential employer.

There you have it – some top tips for working and doing business in Germany. And if you’re looking for a job there, or plan on working there in the future, good luck (or as the Germans say…viel Glück!)

Labour Market Figures Suggest Need for New Approach to Skills Gap

The Open University says businesses and universities must work more closely to address skills shortages.

Skills-Shortage-Graduates

Figures released today show that the UK continues to face up to a worsening skills crisis. Despite the overall rise in job creation, the vacancy rate continues to increase, and is particularly acute in specialist areas such as IT and engineering.

The latest Labour Market Figures, produced by the Office for National Statistics (ONS) reveal there are 588,000 more people in work than this time last year, but that there has been a 6 per cent increase in the number of unfilled roles over the same period, as there are now 756,000 vacancies.

Concerns for Businesses

The on-going shortage in skilled workers is increasingly causing concern for businesses. Decision makers are facing up to the effects of this market on their businesses: hard to fill vacancies can cause delays in developing new products and services, meanwhile the latest CBI/Accenture Employment Trends Survey, published last week, reveals that over half (52 per cent) of respondents believe that developing and maintaining digital skills within their organisation has a new urgency in this climate.

Despite there being over 2 million students enrolled on degree courses in 2014/15, with a 3 per cent increase in full-time first year enrolments in engineering and technology subjects, businesses often find that graduates are not adequately prepared for the workplace.

The skills gap is affecting UK productivity, for instance, engineering companies have reported an annual shortfall of 55,000 skilled workers. It has been estimated that addressing the shortage of skills in this area could generate £27 billion per year from 2020, roughly equivalent to 1,800 new secondary schools or 110 new hospitals. 

Issues for Small Business

Michael Martins, Economist at the Institute of Directors said: “These jobs figures, which show the British labour market ended 2015 strongly, could be just what the doctor ordered as we see nothing but storm clouds gathering across the global economy.

“While this is clearly good news and the increasing number of vacancies means that the unemployment rate could continue to drop, addressing the skills gap takes on a fresh importance. For small firms that employ fewer than ten employees, the struggle to find workers is particularly acute, with vacancies rising by 13.1 per cent in the last quarter.

This is another reason why employers hope the government will not follow through on suggestions to restrict skilled migration from outside the EU, especially as the monthly quota for Tier 2 visas has been shown to be inadequate in addressing skill shortages.”

An Answer in Workplace-Based Education?

The Open University is arguing that a greater emphasis on workplace-based higher education is necessary to create more value for businesses and individuals alike. Steve Hill, Director of External Engagement at The Open University, comments: “The skills gap is affecting everyone, holding back businesses and having a knock-on effect on British economic productivity.

“In most cases, the answer to this shortage is right under our noses – with up to 90 per cent of the current workforce still in work over the next decade.  With the right training and up-skilling, these individuals can become the engineers, data scientists and high-skilled digital workforce the UK needs to compete on the world stage.

The challenge now is for Governments and the academic sector to work together to develop courses that meet the needs of businesses, and provide the right support for those committed to developing their careers.”

The OU regularly supports over 1,300 organisations, including KMPG, Hay Group and the NHS, delivering flexible learning solutions at scale to address skills shortages and develop high performing workforces. With a global reach and as the UK’s leader in part time education, with 76 per cent of OU’s current students studying whilst working full or part time, the OU is well equipped to deliver consistent learning at scale to dispersed workforces.

How an Agile Supply Chain Can Enhance New Product Development

Is your Supply Chain bolstering or hampering the success of your company’s new products?

new-product-development1

Josh Nelson, a Director in The Hackett Group’s Strategy and Business Transformation Practice, discusses Supply Chain and New Product Development.

An agile supply chain can deliver value to the new product development (NPD) process (outlined in Figure #1) by quickly and pragmatically supporting new products / innovation through the core supply chain processes – plan, procure, manufacture, and deliver.

NPD SCIR Report Slide 1

Figure 1: The New Product Development Process

The Hackett Group’s Perspective

Supply chain plays a critical role across the NPD process, because it drives both the investment of capital into production and distribution capabilities and, in many cases, the critical path for launch dates. Yet, the large task of driving agility and flexibility throughout the supply chain may seem daunting to leaders.

As a starting point, The Hackett Group suggests assessing your current capabilities across the supply chain function against best practices to quickly identify the overall maturity level of your NPD process and highlight improvement opportunities. For example:

  • Can procurement identify and incentivise suppliers to participate in enhanced open innovation capabilities?
  • Can the supply chain and finance organisations develop NPD COGS estimates quickly and accurately?
  • Has the company made the correct investment in piloting plants or scaling up facilities?
  • What is the ability of the planning function to mitigate risk by developing inventory build strategies, identifying NPD demand projections accurately, and aligning lead times to common launch date?

Additionally, when assessing improvement opportunities for supply chain’s role in NPD, consideration should be given to:

  • Marketplace trends
  • Establishing or standardising global metrics to track and assess the effectiveness and efficiency of the NPD process

From there, a transformation roadmap can be created to develop the needed structural and infrastructural elements to enhance and enable new product development though agility and flexibility. This enables your organization to:

  • Identify and develop product concepts with the greatest likelihood of success.
  • Reduce costs by relying on your network of suppliers, customers, and other partners to generate ideas and test products
  • Select and manage a portfolio of projects that are aligned with the company’s revenue and margin growth strategies

Download the full Hackett Group Supply Chain Insight Report here to learn more about trends, best practices, and metrics which help supply chain enable the new product development process.

Josh Nelson has over 18 years of both consulting and industry experience, managing and leading large-scale product development and supply chain improvement programs.

Why You Should Consider Carefully Before Hiring Temporary Labour

Examining your demand costs for temporary labour may make you think twice about bringing in extra help during busy periods. Jon Milton, Business Development Director at Comensura, explains.

Temp-Staffing

The use of temporary labour to bolster a permanent workforce when needed is a no brainer, but have you ever stopped to examine the bigger picture? Have you ever considered whether you really need that extra pair of hands, or if there could be an alternative option? Or, have you thought about the objectives the temporary assignment will deliver or how to make sure this spend comes in on budget?

Demand for temporary labour can be caused by a multitude of factors: the need for extra support during particularly busy periods; short-term planning creating the need for a ‘quick fix’ or ‘firefighting’ solutions; or even temporary workers remaining on assignment even after the original reason for their hire has now gone.

Know Your Demand Costs

Before committing to hiring temporary staff it’s important to consider your demand costs. These costs are the direct result of hiring managers from within your business ordering temporary workers without first justifying the need for the worker, or not fully assessing alternative approaches. In many cases, an understanding of demand costs may mean the full cost can be eliminated, which has the potential to deliver significant savings on temporary labour.

For most businesses, the realisation that demand for temporary labour exists is when the hiring manager asks their line manager to approve a temporary hire or when an internal request for a purchase order is made.

But the starting point for any business case evaluation should be to assess the need for non-permanent extra staff and if justified, how much the business is prepared to spend. It’s important to be clear from the outset and agree an approach to evaluating the internal demand for temporary workers rather than just reacting when requests are made.

Evaluation and Consideration

The process for evaluating the business case for temporary workers should take the following into consideration:

  • usage of temporary workers in different business units
  • the seasonal demands placed on the business unit and its capability to meet demand via its permanent employee headcount
  • the business unit’s workforce plans and how critical a flexible workforce is to deliver an efficient, lean operational performance
  • the complexities of your organisational structure and your approach to decision making, is it centralised or devolved?
  • your priorities as a business – for example, those that need to keep tight control of costs should centralise the approval and assessment of the business case

For those hiring managers and business units with a relatively low or infrequent demand for temporary labour, presenting an informal and individual business case will help ensure temporary labour assignments are appropriately planned, scheduled and authorised.

However, for those that regularly use a large number of temporary workers, it makes sense to create an annual business case for each temporary worker category. The plan should assess the historical usage patterns and expected future demands on the job categories so that the workforce can be appropriately planned, scheduled and authorised. For example, in a warehousing scenario there could be one business case for warehouse operatives and another for fork lift truck drivers.

Essentially, the business case for hiring any temporary workers should consider customer demand and the cost of temporary resources. Also, ask yourself what the measureable outcomes from the additional resources are and whether your business objectives will be met. And finally, consider other employment options, and if other projects or tasks can be put on hold to reprioritise resources.

Are Supply Chain Audits Bad for Good Business?

The line, “Quis custodiet ipsos custodes?”, first appeared in Satires by the Roman poet Juvenal, and literally means “Who will guard the guards themselves?”. The question now being asked is, “Who audits the auditors?”, and the answers don’t look good.

Modern-Day-Slavery

Research from the University of Sheffield released last week claims that supply chain auditors are actually “‘working’ for the corporations”, and ultimately failing both the supply chain workers and the environment they are supposed to be protecting.

“Ineffective Tools”

SPERI, the Sheffield Political Economic Research Institute, conducted 25 interviews over a 2-year period with auditors, business executives, NGOs and suppliers around the world, as well as visiting factories in China, before publishing their results.

The report argues that “audits are ineffective tools for detecting, reporting, or correcting environmental and labour problems in supply chains”, and that many of the problems that ethical audits were created to solve are actually being made worse by the process. This is in part down to the organisations carrying out the audits working towards the interests of businesses.

One auditor was quoted in the report as saying, “we will audit as far down as the brand wants to go”. As stakeholders and organisations, such as ISM and CIPS, focus more on the concept of the end-to-end supply chain, including all supplier and subcontractor practices, it appears that in some cases, the full chain is not being assessed.

The Auditing Industry

A quick Google search for the term ‘supply chain audit’ throws up a vast number of results. Included in these results are a considerable number of private companies who are either supply chain auditors, or offer it as part of their services. The increasing market for ethical audits has led to the creation of a booming industry.

It should be pointed out that these firms are not being accused of falsifying results or deliberately misleading the organisations who are employing them to audit supply chains. The accusations lie in the fact that some practices within the supply chain are being missed.

Apportioning blame, even taking the findings of the SPERI research into account, is not as black and white as people might think. If the organisations carrying out the audits are providing misleading findings, then action must be taken.

However, much as procurement may be bound by a specification when purchasing goods and services, auditors will be bound by what they are requested to do by the employing organisation. The auditors may be culpable for not going far enough, but the blame should be shared if organisations are seeking to limit their activities.

Governmental and Public Input

And perhaps this is part of the issue, in having auditors as commercial enterprises. These organisations will be operated as businesses with the aim of meeting customer demand, but, as a business, still need to make enough money to remain operational and satisfy investors.

The SPERI report argues that ethical audits need greater governmental involvement, both from the point of view of conducting audits, but also in enforcing the required standards for working conditions and the environment. Governmental enforcement of these regulations can be difficult, especially where organisations operate global supply chains and fall under a diverse set of jurisdictions.

Many national Governments are tightening regulations around modern slavery and the environment. The UK Government has announced a set of measures aimed at combatting modern slavery in the supply chain. The newly formed Gangmasters and Labour Abuse Authority will be able to use the measures to force organisations to take action, where there is belief that offences have occurred.

However, in order for the issues to be tackled effectively across global supply chains, similar measures need to be in place for all countries, or there will always be areas where practices will remain unchecked.

You can find a full copy of the SPERI report here. We’d love to hear your thoughts and opinions on this issue. If you work for an auditing company, let us know your experiences of this too.

In the meantime, you can check out the major headlines in procurement and supply chain this week…

EU to Scrutinise Large Company Big Data Use

  • The European Union is considering whether the way large Internet companies, such as Google or Facebook, collect vast quantities of data is in breach of antitrust rules
  • Margrethe Vestager, European Commissioner for Competition, speaking in Munich over the weekend stated that the EU would step in if Big Data usage was negatively impacting competition
  • Some experts have warned that with a few large companies controlling the data, it becomes harder for new organisations to enter markets, being too far behind to compete effectively
  • Ms. Vestager also said the EU would look into why some companies can’t acquire information that is as useful as the data that other competing firms have.

Read more at the Wall Street Journal

Wholesale Energy Prices Hit 5-Year Low in UK

  • The mild winter in the UK, combined with falling commodity prices, has led to the price of wholesale energy in the UK falling to a 5-year low
  • Electricity prices fell by 23 per cent against the previous year, while gas prices fell by 34 per cent for the same period
  • Increased production capacity in 2016, milder temperatures and increased usage of liquefied natural gas (LNG)in the UK are also thought to be part of the issue
  • However, energy companies have been accused of overcharging their customers by not passing on the reduction in the wholesale prices

Read more at Supply Management

Indian Government to Assist Start-Ups

  • The Modi Government in India has announced plans to assist start-ups in the country by only requiring the businesses to pay statutory fees for getting started
  • In a move designed to encourage innovation and entrepreneurship, the Government will cover the costs of filing of patents, trademarks or designs
  • The Government has also agreed to relax public procurement regulations for start-ups, not requiring the businesses to meet current regulations for prior experience/turnover found in the manufacturing sector
  • The Government hopes that this scheme will eventually lead to the development of start-up organisations in sectors such as agriculture, healthcare and education

Read more at Business Standard

ECHR Rules Companies Can Monitor Employee Internet Usage

  • The European Court for Human Rights has ruled that companies can monitor employees’ internet usage, providing they have given warning beforehand that personal use of facilities is forbidden
  • The ruling comes after a Romanian engineer took his employer to court after being fired for having private conversations with his family on a Yahoo Messenger site
  • The ECHR, finding in favour of the employer, noted in its ruling that “it is not disputed that the applicant’s employer’s internal regulations strictly prohibited employees from using the company’s computers and resources for personal purposes.”
  • This prior warning given to the employee played a large role in the decision, as the Court could rule that it was not a breach of his human rights

Read more at Ars Technica

Procurious Big Ideas Panel Discussion #2 – Where Are Procurement’s Blind Spots?

What risks does procurement face in the coming years? And what are the profession’s major blind-spots?

This was the question for the second panel discussion at the Big Ideas Summit 2015. There was plenty of passion on display, and at some points the conversation got a little heated, but there were also some fantastic points raised.

With a panel containing Tim Hughes, Olinga Ta’eed, Chris Lynch, Giles Breault, Nic Walden, Jason Busch and Lance Younger, the discussion took in hot topics like social value, procurement transformation, procurement moving away from Finance and leveraging external innovation. This is one not to be missed.

Watch the full discussion here.

See all the keynotes and panel discussions from the Big Ideas Summit, plus Big Ideas from our 40+ Influencers.

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Is ‘Free’ a Dirty Word in Procurement?

How can you resist something that is free? Even when something is genuinely free, there’s still that voice at the back of your mind that sounds a warning. 

free-stuff_0

If someone offers you something for free do you automatically say no? Do you sometimes get curious and wonder why it is free? If you ask more questions and find out that it is truly free, do you still say no? Or do you wait until you find out that there aren’t any strings attached either before you take a chance and say yes?

It doesn’t matter what walk of life you are from, or which profession you work in, there is something that has changed in the human psyche that has made us all inherently suspicious of the word ‘free’. And in procurement, this suspiciousness only appears to get worse.

Something for Nothing?

We now live in a very skeptical society. Long gone are the days where you took someone at their word, without question. Now, recommendations and references are gladly accepted, but further research and checking is carried out before anything is done with them.

It’s probably true to say that there are few things that can be offered that are truly free or come with no strings attached. Entering a competition or signing up to a ‘free’ service online puts your e-mail address on a mailing list, to allow you to be sent future opportunities. Even ‘free’ products are likely to be being used as a loss leader to make you think about spending real money.

Perhaps the reality of it is that we are no long as trusting in nature as we once were, and trust has to be earned, rather than being given until proven otherwise.

Trust me, I’m a Procurement Professional

Trust comes in a variety of guises in procurement and supply chain, two of which we can look at here. First there is the trust between the buyer and supplier, the buyer and end user, or between any two links in the supply chain. This trust is based on the idea that what has been ordered or requested is what is delivered, at the right time.

This is trust that needs to be earned, and is a particularly fragile form of trust, which can be shattered by one missed delivery, one failed quality inspection, one wrong phrase in a negotiation. What is key though, is that this trust is crucial to the smooth operation of a supply chain.

Trust can be built in the supply chain through providing great, consistent service, and delivering on promises. Transparency in operations is a good tool to build trust – many organisations are building consumer trust in this way by making their supply chain operations transparent to the public.

 Everyone Likes a Freebie

The second type of trust is between the procurement or supply chain professional and their stakeholders, such as their employer, shareholders or the public. The trust in this case is based on the professional doing their job in an ethical fashion, and not being in receipt of ‘free’ things in return for contracts and business.

The ‘free’ items on offer could range from being taken out for dinner or being taken for hospitality to a sporting event, to kick-backs and bribes. There have been numerous reports of bribery and unethical behaviour in procurement, all of which have succeeded in eroding trust in the profession, as well as giving the word ‘free’ negative connotations.

However, it could be argued that not every ‘freebie’ is given with strings attached or with ulterior motives. In fact, giving and acceptance of gifts can help to create goodwill in the supply chain, or show appreciation for a job well done, or a successful relationship.

While strong governance regulations help to ensure transparency and ethical behaviour, requiring endless forms and registers to be filled in for low value gifts is potentially punishing the honest many, for the actions for the dishonest few. Now that procurement has begun to earn that trust again, maybe it’s time for the profession to be trusted more.

After all, free isn’t such a bad word, is it?

We would be interested to know what you think? Have regulations gone too far? Or are they entirely justified in light of past events? Is there such a thing as a ‘free lunch’ in procurement?

Cost Control and Consolidation in Consumer Goods Supply Chain

A lack of growth in key markets will lead global players to seek opportunities in the developing world. Developing Economy

Forecasts show that 2016 will continue the trend of minimal year-on-year growth in consumer goods spending, both in the UK and across Europe. In this environment manufacturers will carry on looking for opportunities to consolidate and pare down costs, focusing on developing world markets with higher growth potential.

However, competitive pressures are substantial: manufacturers based in the developing world are leveraging their low cost base and local knowledge to win both in their home and international markets.

Slow Global Growth

2015 saw a continuation of the effects of the ‘Great Recession’ that started in 2007, with historically low revenue growth, margins and shareholder returns. In the eurozone for instance, growth slowed to 0.3 per cent in November, with growth in Italy as low as 0.2 per cent.

China has also experienced significant slow-down, with economic growth at a six-year low of 6.9 per cent in Q3 2015. The impact of the slow growth has spilled over into 2016, with continuing falls in the Chinese stock market and slow demand for commodities having an impact on the wider global economic market.

Nick Miller, head of FMCG at Crimson & Co commented: “Seemingly as a result of this growth, some of the largest acquisitions and takeovers in 2015 have focused on cutting costs in supply goods and services to market. Kraft and Heinz’s merger last July has led to multiple cost cutting measures, as has the more recent take-over of SABMiller by ABInbev.

This trend in the supply chain is surely set to continue, with larger companies merging to create greater economies of scale to further leverage low cost methods in order to reach their target audiences.

In this way, supply chain innovation will also be driven by a need to curb costs and expenditures. Small companies, that are more flexible than larger corporations, are able to react to market developments faster, changing their strategies to bring fresh ideas for supply chain excellence. Larger players, unable to invest in this dynamic way of working, have tended to buy innovation by acquiring smaller companies. Coca Cola has already purchased Innocent drinks with this aim in mind.”

Global vs. Local

Given the lack of growth in Europe and China, many organisations are looking to the developing world for growth opportunities. However, these opportunities can be difficult to tie down, with organisations typically losing out to regional players more comfortable with the local environment.

The smaller companies in the developing world have significant advantages over global organisations seeking to expand in the region. As these companies are already present in the area, they will have an existing customer base, as well as an in-depth knowledge of the market, giving them an edge over external players.

In addition, they have immediate proximity to this rapidly expanding customer base, with naturally greater flexibility to be able to react quicker to market developments. 

Miller added, “Just as with innovations in the supply chain, large businesses will likely look to purchase small companies in developing areas to speed their time to market, instead of building their own on-the-ground agencies. This will be a more cost-effective way of speeding growth in these regions, as well as providing immediate expertise into valuable areas.”

Embracing Technology and Bring Dynamism to Your Workforce

Decision makers can bring dynamism to their workforce in 2016 by embracing technology. Paul Statham, CEO and Founder of workplace technology expert Condeco Software, examines the office trends of 2016.

Hot Desking

The office world is changing beyond recognition. Within a generation, the cigarette smoke-filled paper world has been streamlined and replaced by one of personal computers, tablets and clouds. As we move further away from the traditional hierarchical structures of the past, to a much flatter organisation, the need for new technological solutions facilitating this framework becomes more pressing.

In 2016, business leaders will be increasingly turning towards innovative tech to create a full picture of their companies’ office and meeting room requirements. This wider viewpoint of how their workplace operates will not only allow decision makers to rescale their office space and make significant savings in running costs globally, but also introduce lasting organisational change fostering better working cultures and environments across the world.

  • Dynamic Working

One of the main office trends is the push for dynamic working, necessary to accommodate a younger and more tech-savvy workforce that does not share the idea that they should be sat at their desk all day to prove they are doing a good job, but who feel rather that they should be up and about, keeping in touch with colleagues and clients anywhere and at anytime through the use of mobile technologies.

Dynamic working also reduces the need for desks and meeting rooms, which can be an expensive business as they often remain under-utilised, as highlighted by a study by Condeco Software which discovered that overall desk utilisation is as low as 58 per cent.

  • Hot Desking

Hot desking offers another solution to office space waste, as it renders unused space immediately available and allows for a smaller number of desks. Furthermore, hot desking can also contribute in the push for a less hierarchical organisational culture, as senior and junior employees share more and more desk-space together, which encourages a  more collaborative and informal working culture.

By utilising the power of technology and gathering vital analytics, companies can redesign their working space according to the newest organisational needs. This can promote better communication, improve collaboration, and help create a streamlined work environment.

  • Flexible Working

At the same time, hot desking and dynamic working fit perfectly well with new trends in flexible working, where working from home or from different locations is becoming more and more common.  This trend is only set to increase in 2016, as 82 per cent of managers believe that flexible working benefits their business.

However, flexible workers do need to return to the office from time-to-time, so it is vital to have a system in place which allows workers to easily check where available desk space is, rather than having to search around the office looking for an empty chair.

  • Greater Internationalisation

Businesses also need to adapt to the greater internationalisation of workforce. Technology can enable overseas workers to find a place to work in any foreign office while on a business trip, helping firms overcome one of the complications intrinsic to transnational teams. It can also help foster greater interaction and unity in dispersed teams.

  • Big Data and Artificial Intelligence

Another growing trend is the current push for big data and artificial intelligence, whereby data can be stored an analysed in order to inform business decisions. The reliance on data and automated systems is becoming ever more pressing and, in the future, many more management solutions will be performed by automated intelligent systems, capable of gathering and processing data.

Previously innocuous human tasks, such as booking a meeting room, could now be conducted by smart systems. By using intelligent systems, allocating work-space efficiently, and utilising big data, companies can implement the required workplace changes needed to succeed in the 21st century.