In this blog our Chairman Geoff Skelton, gives us a personal insight into how the UK business landscape has changed in his working life and in the 33 years since he started Chapelton Board.
How does an old head remain relevant in today’s fast moving environment?
30 years ago the UK was overflowing with business opportunities, commodity markets, large scale production and large UK suppliers but there was also a huge lack of investment.
The rest of the world looked for newer, better products and innovative production methods while the UK looked at making cuts and savings to improve the bottom line.
Looking back at that period we see some similarities with the situation in UK business today, we need to stop the race to the bottom culture we have in terms of pricing and service level. We need to look forward and continue to invest in people, technology and systems.
The presence of a thorough business plan remains as important today as it always has been. The way that business is financed has changed dramatically over the years but the fact remains, to obtain the necessary finance needed you have to make sure you have the correct foundations. When looking for finance for Chapelton I went and sat in an office at a bank with the manager and discussed at length what our needs were and how we planned to use the funds I was asking for. Today there are a myriad of finance options open to a business and most involve filling out forms online and occasionally speaking to someone on the phone. Relationships do not always have the personal touch they once did. It is a simple question and answer situation, if you meet the criteria the finance is yours.
In the past an office required far greater staffing levels than in a modern office. Many of the manual office roles are now automated, every office had a secretary and many managers had personal secretaries as well, you needed support both professional and clerical. With the use of email and modern software programs, offices can work in a far more efficient and effective way with less staff than previously needed. Today it is important that managers keep themselves up to date with progress and developments made in all areas of business. Technology is a big part of this and we can’t underestimate its power and its vital part to play.
Previously there was a very clear structure within the business. We had a Managing Director who ran the company, a team supporting him such as a sales director and maybe a financial controller, other roles were filled as needed. We now have CEO, COO, CFO and many other acronyms, some of the lines are blurred in terms of responsibility.
It is more important than ever that we invest in our team members in terms of training but also in our time. It is important that all staff work together and are respected for their input and training can form part of this. I feel that giving staff an appreciation of their own worth and trusting them to perform their roles is more important and ensures that their managers can rely on them to do their job to the best of their ability. We must not forget the value of people, even in this technology lead world.
When I started we had strict adhered to lead times, the printer or carton maker would know that it took 4-6 weeks to manufacture and deliver the raw material, they knew they then needed 3 weeks to print, cut and crease and package the goods. Then the “just in time” culture arrived and changed the industry. Suddenly we had to buy warehousing, invest in stock and take the pressure on cash flow of doing so. Pretty quickly “just in time” became the norm and the added value of doing this seemed to disappear overnight.
The nature of customer relationships has changed a lot, when I started Chapelton I would go and see a buyer at a customer, we would have lunch in the pub, talk about the industry for a few hours and if that went well hopefully head back to the office. We would meet for dinner and socially, any reason really to network and keep a dialogue open, good friendships ensued from this. Most networking is done digitally now through sites such as Linkedin. The buyer role now has far greater responsibility, whether it be production, warehousing or commercial activities so has far more pressure on their time. The social aspects that were the norm are now uncommon.
There was no restriction on the value or amount of gifts that you could give, buyers had no rules regarding meals out or gifts they could receive. Now gifts are prohibited by most companies as they are seen as inducements and are worried about bribery and persuasion. So much of business is no longer about personality, it is product led but I still believe that people buy from people.
I have seen many changes in my time at Chapelton and most of them have been positive. It is an incredibly important time for the industry given high demand on pulp, chemicals, labour and transport, when we add to this the expected increase in demand for innovative products with the desire to replace plastic packaging I believe that Chapelton and our industry as a whole are in the middle of a really exciting time.