Penzance Chamber of Commerce

Myth of Efficiency

It was the mantra of the eighties and in the nineties became the accepted wisdom. In business schools it is the principal focus of whole courses and the "gurus", the consultants and the men from the ministry all regard it as always, unquestionably, a good thing. It is efficiency. Yet its ruthless pursuit by businesses and those who take their lead from business (such as public bodies, local and national governments) has led to a parlous state of affairs in which almost nothing works well and many things never seem to work at all.

That business needed a bit of a shake-up was never in question. Lacklustre productivity rates, restrictive practices and a general resistance to change had led to the kind of complacency that would see tens of thousands of jobs exported and more efficient overseas competitors making highly efficient raids on our markets. Finding more efficient ways of working, of reacting and of serving customers was not only one answer: it was the only answer. Unfortunately, somewhere along the way the idea of efficiency became "leaner, meaner, fitter" and business lost sight of the objective.

The problem is a lack of excess capacity to make up for when something goes wrong. We've all heard the (possibly apocryphal) horror stories - such as the new hospital administrator who wanted to air his efficiency credentials and so ordered that any piece of equipment that hadn't been used in the preceding nine months should be sold off. It was only in a later power cut that someone realised that the hospital no longer had an emergency generator. On a less dramatic and yet more demonstrable note, take the railways. "Efficient" timetabling requires that each piece of rolling stock is used to the peak of its capacity. This is great when everything is working as designed. One breakdown or delay, however, has a knock on effect that spreads through the network, crosses company boundaries and leads to travel chaos. If your train is late and the staff seem unable to explain why, the true cause is probably sitting in a siding hundreds of miles away awaiting an engineer, who is unable to attend since his train to work was cancelled and there is nobody else available, so lean mean and fit has the maintenance company become.

Even the most well-loved aspect of the efficiency myth causes its problems. The "just in time" principle gives that holding stock is bad: retailers should have only the stock they need for today's demand. The same should also apply to each stage of the supply chain. Leaving aside the vast increase in commercial road traffic this widely accepted principle has spawned, (and the potential for highly inefficient gridlock conditions), when a small perturbation in the supply chain occurs, the result is shortage and a loss of sales. Worse still, a major interruption could lead to empty shelves and a shortage of essential supplies. If the supplies involved are components for other products the knock-on effects are quickly widespread and could be devastating for a region's business.

The demands of efficiency has led The Royal Mail, an organisation which exists to deliver mail, to pursue better performance by reducing its capacity to deliver mail. Don't worry if you have to read that sentence twice, it makes just as little sense the second time.

What's needed is a shift in emphasis. Of course we all want to do as much as possible with as little as possible. Nevertheless we should all be aware that things almost never go perfectly to plan and we should have some excess capacity to take up the slack. Customer service and reliability of supply is something that people will increasingly pay for.

Perhaps the wider business world could learn from our more relaxed Cornish attitude? After all, many Cornish businesses often seem so laid back that they are horizontal. Once again, Cornwall leads the way.

The Bottom Line Potential for IT

"Only two considerations matter when considering IT for business: increasing revenue and reducing costs." That's the view of Phil Allatt who, through his company, IT West, aims to help address the shortfall between application and potential of technology for business.

Phil grew up in Penwith, brought here as a small child by his parents who ran a holiday business. After serving his apprenticeship with J & F Pool, he was lured to Birmingham to work on production control and manufacturing systems, developing a wider interest in the application of IT in business before joining Specialist Computer Centres (SCC) as a consultant in large scale system implementation. For thirteen years he worked on large scale outsourced system integration projects for blue-chip clients including Unipart, Exel Logistics, Severn Trent Water and British Airways.

Four years ago the desire to give his own young family the opportunities of growing up in the local environment he so enjoyed brought him back to the district. Initially retaining a role managing the South West Region for SCC, the travelling demands led him to consider starting his own business. "I spent two years developing a concept of the IT perspective in Cornwall and the local market," he explains, "evaluating technology solutions for local hotels, construction industry, restaurants and estate agents. I found that while there were plenty of suppliers willing to sell computers, PC World style, no-one seemed to offer integrated managed systems design and service."

Most businesses - in West Cornwall as well as the rest of the country - are missing out on the full benefits of their IT systems. The suggestion is that when a business decides to use an IT-based solution it does the obvious thing - buys a computer. As their need grows they buy a few more. Every now and then (usually just after a major failure) they might replace or upgrade. The result is a hotch-potch of disparate systems, with staff members at various levels of proficiency doing things various different ways and a number of "information islands" - where the life blood of business can be parked until somebody spends a day looking for it, stumbles over it or possibly never finds it at all.

A better approach - like that of IT West - is to begin by taking a look at the information needs of the organisation and then to design a system that serves them in practical ways. It is about linking systems together, better management or procedures, better use of resources or matching the right systems to the application. The philosophy is simple - the bottom line is what matters.

IT West begins this process with a detailed business review which develops and recommends IT solutions tailored for the individual business - the company is independent of any systems vendors. This is then developed into an implementation strategy and then Phil stays with the organisation through the implementation phase. "Some consultants will produce a report and then leave you on your own. We work through the entire process with you," he says.

As an example, Phil cited the work he has recently carried out for Safety UK, the business run by Chamber chairman Mike Waters. This involved improving the business process so that existing computers were linked and worked together, to make better use of electronic communications and the Internet, linking remote locations while improving the company's customer management and scheduling systems.

"We want to help people recognise the importance of technology. Its impact on many businesses is that if the systems don't work, the business doesn't work," he points out.

Phil is relentlessly optimistic about the future of technology in business. He regards the internet as an example - now entering its second phase the world Wide Web is about to show its true benefits, he predicts "We're still only scratching the surface of what IT can do for business," he says. "We think that computers have come a long way in the last few years but we'll probably see more developments in the next ten than in the last fifty." According to IT West's perspective, that should mean better bottom-line performance for all kinds of business.

Phil Allatt - IT West is at Tolcarne, St Anta Road, Carbis Bay TR26 2LE Tel: 01736-799376, e-mail: sales@itwest.co.uk. For a limited time, its business review service is offered free to all Chamber members.

Radio Pioneer Appeals for Support

March's Chamber of Commerce meeting opened with an impassioned appeal for support from John Grierson whose company CKFM is due to be among those bidding for Cornwall's second commercial radio licence when it becomes available later this year.

CKFM intends to offer a dedicated music station drawing on music from the shows, standards and melodic contemporary music a mix that its literature describes as "pure gold radio". "We could start broadcasting tomorrow," he told the meeting. He was also at pains to point out that CKFM will focus only on Cornwall - they're not interested in anything on the wrong side of the Tamar. Even the news and talk content will lead with Cornish issues.

The team he has assembled has, he asserted, more than two hundred years of collective experience in radio and all are Cornwall-based. A four week trial broadcast by the station achieved a remarkable 24 percent of the available audience.

For several years Mr Grierson and his colleagues had campaigned for a second radio licence in Cornwall and had been instrumental in forcing the old Radio Authority (latterly replaced with OFCOM) to announce the new licence. He justifies his faith that CKFM should be awarded the licence simply and succinctly - "We've worked bloody hard for it," he declared announcing that this was his 84th presentation to Cornish business and community groups.

Mr Grierson asked for support from Chamber members for his venture. One pattern that is emerging is that there is a great deal of passion among those who are seeking to entertain and inform the discerning ears of our part of the world. Dispassionate observers are looking forward to a spirited campaign and hope that what emerges from the shake-out is a committed broadcaster who will make a powerful addition to the media options for local business.

More Car Park Misery

While we continue to fight any attempt to reduce the town's capacity for visitors (and local people) who want to park their cars while shopping, doing business or just nosing around Penzance, we were a little dismayed to learn that the long-standing principle of reduced parking charges for the winter period is to be quietly retired. Next winter the charges will be the same as they will be in July. Needless to say, the winter charges will climb to the summer level rather than levelling off at the lower option.

Although we all know that the recent controversy and dark threats from Whitehall about rises in council tax rates has left many a local authority scrabbling around for alternative revenue-raising methods, we would have liked to have seen a more public debate on this issue rather than having it announced without fanfare on the classified public notices page of the Cornishman (thanks to John Murrish for bringing it to our attention). While recognising that this full page notice was fully in accordance with the council's statutory obligations, don't you think that had they been lowering the winter charges they'd have issued a major press release - probably with fireworks and a parade?

We'd also like to see more consideration given to the needs of local traders who depend on car park users who have a choice (Truro is only forty minutes away). Now there's a triumph of hope over experience..

What's the Chamber For (Again)

A discussion aimed at establishing a set of achievable objectives for the Chamber to address has resulted in the establishment of a sub committee of five members to develop a business and marketing plan for the Penzance Chamber of Commerce.

The brief for this new body will be to develop a detailed plan for the Chamber's activities and campaigns, to design the focus for its meetings and also to formulate ways in which the membership and participation of the membership can be increased. The question this leaves open is, of course, how? Which is where you come in.

Let the Chamber, either through the secretary (Yvonne Neale, 01736-719222) or the press officer (Mark Curtis, 01736-731277) know what you would suggest as potential strategies and ideas to address the brief. Should the Chamber negotiate deals for collective discounts on behalf of members? Should we introduce guest speakers with specific training advice at the monthly meeting? Would a roving press gang armed with clubs and shackles improve our chances of gaining new members? Your ideas will form the basis of the Chamber's activities for the immediate future so don't hold back. Tell us what the Chamber is for and we'll try to live up to your expectations.

Hazel's Chicks to Light up Town

When long-serving Chamber of Commerce activist Hazel Trembath suggested that the Penzance Christmas Lights should once again have a Chamber presence she didn't leave the fundraising to anyone else. She set about the matter in her own inimitable style. "I'll probably end up knittin' chickens an' sellin' you eggs in 'em," she told the meeting.

That's just what she did. Hazel's chickens, complete with chocolate crème egg are available from the Fountain Tavern, Penzance, the First and Last at Alverton and the Pirates Rugby club and cost just a pound. While you're enjoying the chocolate indulgence and getting to know your new knitted pal you can rest assured that you're helping the Chamber to add to Penzance's Christmas.

A further contribution you could make would be to donate some wool, thread or eggs to Hazel's campaign - she'll put in the work (and add the magic) but if you can help her reduce costs there'll be more money for the Christmas lights. Anyone who can help should contact Hazel on 01736-361378.

More Money at March Meeting

The Chamber's finances are in good shape, the March meeting heard, thanks to an influx of cash from the now defunct CCTV fund. Consideration of how this money is to be used in furtherance of the Chamber's aims and activities will be among the remits of the new marketing and business plan sub committee, featured alongside.

The chairman told the meeting that the Penzance Harbour and Regeneration Committee is to consider two proposals for the extension and widening of the Lighthouse Pier to accommodate lorry parking, buses and a freight and passenger terminal. Proposals for the promenade include the construction of breakwaters to limit wave action and, hopefully, restore a sandy beach to the strand between the battery and Newlyn.

A Market Jew Street working group has now been established, formed from the old working group and recruits from the forum - although since no traders from Market Jew Street attended the forum, Chamber treasurer John Bastow of the Wharfside Centre will represent traders' interests on the new body.

Members were urged to take time to study the new local plan which is on display in the district's public libraries in order that we can all make informed comment.

Secretary Yvonne Neale appealed to the membership to let her have any unwanted Tesco "computers for schools" vouchers and she would see to it that they are put to good use. All employers have a vested interest in education, after all.

The regular monthly meeting of the Chamber of Commerce is a prime opportunity to reach a good number of active and committed local business people. If you have a pet issue on which you would like to make a brief presentation or place some materials on display, why not get in touch through the secretary, Yvonne Neale on 01736-719222?

The next meeting of the Chamber will be at 7.30pm at The Pirates Rugby Club on Tuesday 6th April. Come along and make a contribution to the business life of the district.

Another Hot Potato For Penwith

A revoked licence for a stallholder to sell hot crepes and jacket potatoes on the streets of Penzance has raised a matter of just how much the District Council's licensing authority has its finger on the town's pulse.

Although the licence was withdrawn after a series of objections from local traders on a variety of grounds - and much as the Chamber regrets seeing anyone's enterprise restricted - our concern was the comment which reached our ears as to how this licence was initially issued. Apparently it was awarded on the basis that nobody else locally offered crepes or jacket potatoes.

That anyone at the local authority could believe that that not one of the restaurants, cafes, pubs or bakeries or any other take-away outlet in all of Penzance's hospitality-laden economy offered a hot spud in its jacket beggars belief. Not so much out of touch as utterly beyond reach, we suggest.

Join the Chamber

The Chamber of Commerce represents the interests of local business with the County, District and Town Councils, Government agencies and public bodies. It actively campaigns on issues affecting the business community as well as issues affecting the community as a whole. This requires finances and direct involvement by committed people, and deserves the support of every business in the region.

Our Chairman is coordinator of the West Cornwall Group of Chambers and the Cornwall Business Partnership. He is a member of the Priority Management Group 3, which approves Objective One funding in the area of Learning and Skills development He is also a member of the Penzance Regeneration Steering Group that has worked on the submission of an Objective One bid to greatly enhance the prosperity of the town and its inhabitants. Other members represent the Chamber on such bodies as the Police Consultative Committee and Tourism Committee.

All businesses have problems from time to time, and it has been proved that representation from a Chamber Officer on behalf of the member concerned can greatly enhance the prospect of a satisfactory conclusion. With major issues, such as the Penzance Regeneration Project, West Cornwall Hospital, Objective One and so on needing input from the business community there has never been a better reason for all businesses to become Chamber members - the greater our membership, the bigger our voice. JOIN NOW!

We invite membership applications from individuals and businesses large or small. For further information, visit the Membership Enquiry or Membership Application pages on this site.

Forthcoming Meetings

The next monthly Chamber Meeting will be held on Tuesday, April 6th at 7.30pm at the Pirates Rugby Club, Alexandra Road, Penzance.

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PENZANCE - THE PLACE TO BE

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