DRIVING
Issue 3 Autumn 2012 £4.50
Helping you make better decisions
CASH IN ON USED VEHICLES Clever choices can help businesses make money
INVEST IN HAPPINESS
NEVER MISS AN ISSUE Go to page 25 to sign up for your FREE Driving Business subscription
Improve workplace wellbeing to boost staff productivity
‘INNOVATE TO SURVIVE’
Cash is king, but ideas and persistence go a long way to making a business successful, says Michelle Mone
❚ Is vehicle safety technology worth the money? ❚ Compact premium cars: which is best for you? ❚ Planning for a safe journey
Contents �
FRONT END
4
Gain respect
ISSUE 3 Autumn 2012
�30 Michelle Mone
10 ways to earn respect from your employees
16 Opinion
Training opportunities are under threat for small businesses
�
STRATEGY & FUNDING
12 Cash in on used vehicles
Condition, colour and specification are vital to maximise resale values
28 Clouding the issue
White and fluffy or a potential storm? We examine cloud computing
�
BROADER VIEW
30 The DB interview
Michelle Mone on why you can’t afford to rest on your laurels
34 Happiness at work
Workplace wellbeing is becoming an essential investment
�
HEALTH AND SAFETY
19 Technology
Many safety systems are available, but will companies pay for them? LIGHT FLEE
�
THINK DIFFERENTLY
VY FLEET HEA
T
JUST RIGHT
41 Fight excess vehicle flab Improved utilisation is key to reducing company costs.
�
CARS AND VANS
44 Compact premium cars Find out which of these models make the best company vehicles
48 Panel vans
Happiness at work
�34 � 19 Safety technology
Improving utilisation
� 41
�28 Cloud computing
We compile your shortlist of cost-efficient vehicles
51 Coming soon...
The new car/van models due for launch over the next three months www.mydrivingbusiness.co.uk ❚ Autumn 2012 ❚ 3
DRIVING
Helping you make better decisions
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Contact us
Editor’s welcome
Driving Business, Media House, Lynch Wood, Peterborough PE2 6EA. Email editorial@mydrivingbusiness.co.uk
Business development manager Stuart Wakeling 01733 468342
How often do you think about selling your cars and vans while deciding which ones to buy? In other words, do you consider how to maximise the re-sale price of your cars and vans at the point of purchase? This isn’t about crystal ball gazing about economic conditions and residual values three or four years into the future; it’s about knowing which colours and specifications will get you the top price at auction. There is also plenty you can do while the vehicle is with your business, as we outline in ‘Cashing in your used assets’, which starts on page 12. Elsewhere in this issue of Driving Business, we feature the rags to riches rise of Ultimo bra entrepreneur Michelle Mone (page 30). Like many of our top business people she left school with no qualifications. Yet through a combination of determination, persistence and a keen
Account managers Heidi Rogers 01733 468269 Lisa Turner 01733 468345 Lucy Herbert 01733 468800
Contributors
Editorial Editor Stephen Briers stephen.briers@bauermedia.co.uk Deputy editor Simon Harris simon.harris@bauermedia.co.uk News editor Gareth Roberts gareth.roberts@bauermedia.co.uk Senior features writer Sarah Tooze sarah.tooze@bauermedia.co.uk Web producer Debbie Wood debbie.wood@bauermedia.co.uk Contributors Louise Cole, John Maslen, Richard Yarrow, Liggy Webb Production Head of publishing Luke Neal Production editors Andrew Ryan Alan Salt Designer Charlotte Boon Advertising Group sales manager Sarah Crown 01733 468320 Group advertisement manager Sheryl Graham 01733 468256
Head of project management Leanne Patterson 01733 468332 Project managers Angela Price 01733 468338 Kerry Unwin 01733 468327 Publishing Managing director Tim Lucas 01733 468340 Group marketing manager Bev Mason 01733 468295
eye for innovation (plus a laissez-faire approach to the accuracy of her CV) she got on the first rung of business and then launched, developed and grew a global organisation – MJM International – which now turns over more than £8 million. It makes fascinating reading. This is our third issue of Driving Business. I hope you have been finding them useful so far in helping you to run your cars or vans more cheaply and efficiently, as well as our Broader View articles covering other aspects of your business operations. If you wish to continue receiving your free copy of Driving Business you will need to register your details with us. Go to www.mydrivingbusiness.co.uk/ register/ The next issue will be out in March 2013, but in the meantime you can keep up to date on the website mydrivingbusiness.co.uk Stephen Briers Editor, Driving Business
Louise Cole Louise runs a media agency, White Rose Media, specialising in fleet and logistics. Although most of her life has been spent writing about haulage fleets, she recognises the same business issues for cars and vans: safety, cost reduction and operational efficiency.
Richard Yarrow Richard is an experienced freelance motoring journalist. A former associate editor of Auto Express, he writes for national newspapers, consumer magazine and trade titles. Richard is equally at home interviewing company executives or driving their latest models.
John Maslen John is widely recognised as one of the most experienced and knowledgeable writers in the company car and van business. He wrote for trade magazine Fleet News for 10 years and is now brand director at motor industry research business Sewells Insight.
Liggy Webb Liggy is a leading expert in the field of modern life skills and is the founding director of The Learning Architect, a consortium of behavioural skills specialists. As an international consultant for the United Nations, she travels to peace missions around the world.
Office manager Vicky Meadows 01733 468319 Group managing director Rob Munro-Hall Subscriptions: subscription@mydrivingbusiness.co.uk Printing: Headley Brothers Ltd, Kent © 2012 Bauer Media No part of this magazine may be reproduced without the permission of the publisher. You can purchase words or pictures for your own publications. Phone 01733 465982 or email syndication@bauermedia.co.uk. Driving Business will not accept responsibility for unsolicited material.
mydrivingbusiness.co.uk ❚ Autumn 2012 ❚ 5
n F RO N T E N D
TEN 1
WAYS TO GAIN EMPLOYEES’ RESPECT REMEMB ER T HE 4 P S: PR A ISE IN P U B LI C ; P U NISH IN PRIVAT E .
NE V ER OV ERRE AC T
Things do go wrong: it’s how you react to them that is crucial. The worst response is the kneejerk reaction – taking out your frustrations or anger on those concerned. Step one is to cool off. Don’t fire off that angry email; instead write it and leave it for 30 minutes. Re-read it and you’ll heave a sigh of relief it remained un-sent.
One of the management fundamentals and key to motivation. If someone has done something well let them and everyone else know about it. Not only will it give them a warm glow, but it will also spark everyone else. Punish in private and employees will more readily accept what you say without getting de-motivated.
GIV E CRED IT W HERE IT’S D U E If it was someone else’s idea, praise them (again in public) and cascade that praise upwards so senior management are aware. Give your staff glory and they will respond.
5
7
9
A D MIT MISTA KE S IF T HE Y O CCU R A ND A SK FO R HEL P
There will always be times when a few extra hours are required. But monitor your employees’ hours and make sure that they aren’t regularly working long days – they need time at home to relax and re-charge.
KEEP YO U R PRO MISE S If you use incentives to motivate your team then, when the time comes, stay true to your word. Don’t suddenly move the goalposts in order to save some money in the short-term. If you do, then in the long-term you will lose out through lower productivity, disgruntled staff and a likely high employee rate of turnover.
D O N’ T A SSU ME YO U R CO MPE TITO R S A RE ST U PID There is always a better way of doing things and it is only a matter of time before someone finds it. That may not be you, so you need to keep a close eye on your competitors’ movements to ensure you can react to changes in their policy or new products. Encourage your staff to be your eyes and ears.
10
Some leaders believe that admitting mistakes is a sign of weakness that devalues them in the eyes of their staff. That’s ego talking. The best leaders are open and honest and if something goes wrong and it’s their fault, they hold they hands up to the mistake. The key, of course, is to learn from any mistake – and not make it again.
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ENSU RE YO U R STA F F H AV E A H O ME LIF E .
IN T UITIO N IS FINE , B U T IT NEEDS A RE A LIT Y CHECK Great leaders are naturally intuitive, but they also do their groundwork. Nothing loses employees’ respect like someone making off-the-cuff decisions without due care and consideration.
A LWAYS T HINK T HRO U GH YO U R D ECISIO NS Business needs to be sustainable; it should never be about taking the short-term, quick wins if those quick wins are likely to create issues further down the line. Your staff need to see you as someone who plans ahead and considers the possible far-reaching consequences of any big decision.
3
REMEMB ER : YO U A RE O N LY A S GO O D A S YO U R T E A M – T RUST T HEM
The best companies encourage involvement at all levels of the business. Create a team of people with complementary skills, some of which may be better than yours – indeed this should be mandatory; how can the business develop and grow if you aren’t employing and cultivating people that are better than you?
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HOW TO...
Create a strong brand Mark Palmer, non-executive director, Green & Black’s chocolate A strong brand is one that consumers would miss if it no longer existed – one they have a bond with and are prepared to pay more for. In that sense, strong brands can command premium margins and be loved by accountants not just marketers. Creating the best brands can take years. You can’t buy your way to success. It is about building a community of advocates and doing it authentically. That takes time and careful nurturing. It’s about building trust and commitment with your customers and growing your fan club over time.
BJ Cunningham, Death cigarette founder A strong brand is everything. It is the whole point of a business. Strong brands all share certain criteria. They all see, understand and communicate their business and brand as a whole. The secret to increasing the power of a brand (making it more attractive, magnetic) means ‘owning’ or being synonymous with a clearly defined ‘market position’ in the mind of your customer. A brand is a promise. It is not a logo or a name. It is more than just an identity or profile. A brand is the highest expression of who an organisation really is and serves as the banner behind which the internal culture and the external market can rally. A brand is the statement of an organisation’s business philosophy and strategic intention and penetrates every aspect of business logistics from production through distribution to delivery, consumption and finally return purchase. If any aspect of the business activity does not live up to and reinforce the brand promise, consumers will lose trust in that promise and seek a more reliable promise elsewhere. So companies must define their point, express that point (that direction) with clarity, understand that their point is their real value, own that value position in the minds of the people (both consumers and employees), be true to that value position and stay consistent. This requires strong leadership, clear messages and unwavering communication. It means building from the inside out with authenticity, responsibility and transparency. It means having the courage of your own conviction. It means being the brand, your brand.
WORDSMITH
Don’t be bamboozled by industry jargon C A PITA L A L LOWA N CE Capital allowances are what a business can deduct from its profits each year in respect of long-term assets that it has bought, such as vehicles, before its tax is worked out. Currently the rules are: n Cars with CO2 emissions above 160g/km qualify for writing-down allowances at 8% n Cars with emissions of 111-160g/km qualify for 18% n Cars up to 110g/km qualify for 100% in the first year From April 2013 the thresholds change. The upper (8%) threshold drops to 130g/km; the lower (100%) threshold reduces to 95g/km.
LEASE RENTAL RESTRICTION For companies that lease their cars, different rules apply. Leasing disallowances permanently limit the amount of the lease rental that businesses can deduct from their taxable profits in respect of payments they have made on contract hire. Businesses can deduct the full cost of finance rentals from taxable profits if the car emits 160g/km of CO2 or less. On higher emissions, there is a flat rate disallowance (the lease rental restriction) of 15% of the finance rental; so, only 85% can be deducted. The emissions threshold reduces from 160g/km to 130g/km in April 2013.
HOW TO...
Create a social media strategy Building brand awareness, authority and trust are very important for entrepreneurs, businesses and bloggers. Whether you are selling services or products, people like to conduct business with people they know and trust. Social media is a great platform to build trust, awareness and authority. Taking an active role in social media sites such as Facebook, LinkedIn, Twitter, etc. builds awareness significantly. There are some basics of social media marketing all businesses should follow. Create a Facebook fan page with basic company information. On the wall of this
business page you can add a shop or share a link leading to customised pages. This allows users to view all ads and promotions running. There should be a button in the page which allows the shopper to communicate with your local store and get answers to any technology related queries. Shoppers should be able to browse through all promotions, offers, competitions and gifts. For the Twitter business profile you should integrate it with your overall business cause. Integrate Twitter with your other marketing actions using short
URLs. You can tweet about blog updates, press releases, products, promotions and offers running at your store. Tell visitors about new store locations and other incentives. Such arrangements will let advocates and customers stay in touch with the company. Many companies are thinking one step ahead; they are using Twitter as a customer service tool. You can respond to happy and dissatisfied customers alike. To utilise Twitter in this way you need a social media intelligence strategy. n See: socialmediastrategy.org.uk/blog/
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n F RO N T E N D
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OPINION
TR AINING
“
One of the biggest concerns is that much of the training budget is being spent in simply complying with the myriad of legal requirements firms face.
W Phil McCabe, senior policy adviser, Forum of Private Business
32%
believe the training and skills environment has improved recently
64%
of members are using training budgets for red tape compliance
”
ith the recent national furore over A-Level and GCSE results, the spotlight is back on education and training – and whether the skills of young workers match the needs of businesses. Members of the Forum of Private Business say that many recruits fresh from school, college and university lack the workplace skills they require. Worryingly, this often means a dearth of basic skills such as literacy and numeracy. A poor attitude is also frequently highlighted as a problem. The Forum’s recent Training and Skills Panel Survey highlighted the difficulties SMEs face when trying to up-skill their staff. While 32% of panelists said the overall training and skills environment has improved recently – compared to the 19% who think it has deteriorated – 61% report costs as the biggest barrier to providing employee training. Further, 40% said the availability of training is a problem, 28% indicated that the quality of courses is an issue and 22% cited the time required as an impediment. One of the biggest concerns is that much of the training budget is being spent in simply complying with the myriad of legal requirements firms face. In all, 64% of panel members are using money set aside for training to deal with red tape compliance among staff. Once again, the cost of complying with regulations – in this case ensuring employees are doing so – is having a serious impact on the abilities of small businesses to grow, create jobs and drive economic recovery. No one is saying there should not be rules and regulations governing the workplace, but many business owners feel the problem is with the unnecessary red tape they have to wade through. It all adds up.
Forum research from autumn 2011 shows that British SMEs are forced to spend £16.8 billion per year on complying with regulations – with 84% of forum members claiming they have spent more on red tape since the Government came into power. Much of this is spent on external consultants. Business owners are exasperated that, not only are they being prevented from devoting time and money to important areas of their businesses, training opportunities for workers are also under threat – particularly young employees in most need of it. However, according to our training and skills panel, SMEs have been able to find more cost-effective methods of meeting their skills needs by sourcing alternative, cheaper training. Ever-resourceful entrepreneurs are turning to online courses, guides and handbooks, industry mentoring and ‘DIY’ courses alongside more traditional forms of training via local authorities and colleges. These are encouraging signs, but more is needed to make the education system fit for purpose so that small firms are better able to recruit the skilled workers they need. The steep cost of training staff must be addressed. It is only by cutting as many unnecessary overheads as possible that SMEs will become the engines of the economy by increasing employment. In parallel, helping small businesses decide how they should approach staff training is important. Firms face such a bewildering array of issues that it can be difficult to target their time effectively. With this in mind, the forum is encouraging the extension of schemes such as the recent ‘Mentorsme’ initiative to provide SMEs with expert advice, guidance and support. Finally, local training schemes should be tailored to fit the specific requirements of small firms, an issue which is paramount to forum members. Alongside these improvements, forging better links between businesses and local educational institutions would both help businesses and improve the skills of school leavers.
FORUM OF PRIVATE BUSINESS The Forum of Private Business is a business support organisation focused on the growth and profitability of its small business members. The forum offers a comprehensive package of member services to help businesses make money and save money.
n A B O U T P H I L M CC A B E Phil McCabe joined the Forum of Private Business in 2007. He is responsible for promoting the forum through media and PR.
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n F RO N T E N D
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OPINION
DRIVERS AND THE L AW
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Any officer of the company who can be proved to have shown consent, connivance or neglect in default of furnishing details can be prosecuted
I
n ANDREW CH U RCH TAY LO R , FA R L E YS S O L I CI TO R S Andrew ChurchTaylor has been a partner at leading Lancashire law firm Farleys for 25 years. Practicing exclusively in criminal law and motoring offences, he has a proven track record of successfully defending clients who have been accused of road traffic or road transport offences.
”
f you have a number of vehicles on the road, then it is probable that at some point one of your drivers will transgress. On rare occasions the offence committed may be serious. More likely is where the vehicle has activated a static or mobile camera bringing into play a process which can, though not always, lead to prosecution. If the driver is stopped at the scene, then officers will have identified him or her and either orally or in writing issued a notice of intended prosecution. Failing this, a notice, incorporating usually both a notice of intended prosecution and a request for driver details, is forwarded to the registered keeper. There is a statutory time limit for sending a notice of intended prosecution and that is within 14 days of the date of the offence. Confusion can arise if the fleet of vehicles is leased and the service on the company is well outside that period. Of course, the right to prosecute would have been maintained by service on the registered keeper within the time period although they may not be the keeper. Once notice is received, then the person keeping the vehicle is required to give such information to identify the driver as requested. Given that the service of the notice is the first step in the process, it can also be seen as perhaps the first line of defence. There have been challenges not only on the form and substance of the notice, but also on more fundamental issues, for example that the request is a breach of human rights. Lawyers have been keen to advance arguments regarding the validity of requests for details, but the authorities have been equally keen to ensure compliance and, although a generalisation, the courts fall on the side of upholding the process. A notice, therefore, lands on your desk. What do you need to do? Firstly, if the driver can be identified, then his or her details should be completed on the form and it returned. The process will then continue with the
driver being sent a similar notice to admit or provide details of the person who he says was driving. What about when the driver cannot be identified? The person keeping the vehicle needs to prove they neither knew who the driver was and that they could not, with all reasonable effort, ascertain their identity. The question of reasonable diligence will have to be decided on the facts of the case. In the past, for example, a court decided that enquiry of only 12 out of 25 drivers did not show such diligence. If the request is made of a body corporate, then the reasonable diligence defence will not apply unless a record was kept of the vehicles and their driver details or that failure to keep a record was reasonable. The question arises as to whether there might be any personal responsibility where the request is made of a company. The simple answer is ‘yes’, but the prosecution must prove that it was due to consent, connivance or neglect on the part of a company officer. It is commonplace now for notices requesting driver details to incorporate such phrases as, “Where the recipient is a company, this notice should be handed to the company secretary”. Even though such phrases are incorporated, that of itself would not show connivance, consent or neglect on the part of the company secretary as the prosecution would need to prove all elements of the offence, including personal responsibility on his part. This may be possible if, for example, the company secretary has entered into correspondence and then failed to respond, but more usually it is the company which is summoned for non compliance. It is not only the company secretary, of course, who is at risk. Any officer who can be proved to have shown connivance, consent or neglect in default of furnishing details can be prosecuted. There have been examples where the notice has been sent to the company bearing the endorsement with regard to handing the document to the company secretary, it has not been responded to and the summons issued has been against the company secretary. If the only evidence supporting this is that a notice was served on the company then there is no evidence of connivance, consent or neglect and the matter could be successfully defended. It is important to note that this would only be where the company secretary is prosecuted in their own right, distinguishing it from a case where the summons is simply marked for their attention. There is one word of warning. It is often thought that, because a company cannot have endorsements imposed, it is a convenient vehicle to hide behind to avoid individual liability. Persistent use, or rather misuse, may well lead to a visit from an officer seeking to investigate potentially more serious matters. It would be naïve to think that the computer systems of the prosecuting authorities could not to collate information to allow enquiries of that nature to be made.
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n STR ATEGY
MAKING MONE Y WHEN YOUR SELLING YOUR VEHICLES
CASHING IN YOUR USED ASSETS Condition, colour and specification are vital to maximise your vehicle’s value
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n W H AT T HIS M E A NS FO R YO U Many smaller companies buy their company cars and vans outright. This is fraught with danger if you don’t have a robust approach to selling vehicles at the end of their life with your company. This starts with buying the right vehicle: the right specification and type, with the right options. It can make a huge difference on valuations when the time comes to sell.
T
By Simon Henstock he UK’s SME ‘fleet’ is probably the most diverse and potentially interesting selection of vehicles imaginable. Whatever vehicles small businesses operate, there will come a time when they need to be sold and BCA’s UK operations director Simon Henstock offers advice on getting the best price at remarketing time. He says: “Whatever channel you choose to dispose of your company vehicles there is no getting away from the basics of remarketing – preparation, condition, documentation and presentation remain crucial. “Have a good idea of what your vehicles are worth so you can make an informed decision about any offers you may receive. Make sure your vehicles are in good condition and consider repairing any cosmetic damage. Make sure all the documentation and ancillaries are available at the time of sale – the service history, V5 form, vehicle manual, CD/radio codes and spare key, for example. Clean the vehicle to a high standard. “And don’t waste time in getting the vehicle sold – used
vehicles depreciate so the longer it takes the more the hidden costs build up.” Henstock adds: “Talk to a professional remarketing company – you don’t have to sell trailerloads of cars to interest a vehicle auction company and most will hold specialist fleet sales designed for exactly the sort of vehicles you want to sell. “They can also organise everything from collection and delivery to the auction centre, to appraisal and valuation, pre-sale marketing and preparation, to the collection of sale proceeds and payment back into the company coffers. “Whatever route you choose to sell, it is eventually the motorist who makes the decisions about desirability and value – they buy the best used cars they can for the money they can afford. “They walk away from cars they perceive to be overpriced, under-specified or in the wrong colour.” Knowing what motorists want – which includes the professional buyers who service their needs – can help companies not just at remarketing time, but also when making decisions on the front-end purchase.
n BU YING WISELY TO BO OST RESID UA L S n TO P T IP
SU PERMINI
LOW ER MED IU M
The supermini sector is one of the most popular in the used market, representing good value motoring that is as practical around town as on longer motorway runs. Bold and bright colours work well, as do metallics and even pearlescents, and all help to give character to the cars. There is less of an incentive for diesel power in this sector as the smaller petrol engines are already very economical to run. With so much good product around from the manufacturers, it is hard to go wrong in this sector, but air-con is a must and all the usual gadgets such as remote central locking and electric windows help. High mileage has a disproportionate downward effect on value.
The lower medium sector has been one of the most consistent auction performers in recent years. The sector generally outperforms the rest of the market in terms of retained value and makes for a very attractive commodity at remarketing time. Because there is plenty of choice of good quality product in the marketplace, buyers are always looking for the best spec and colour combinations. Good metallic colours always sell well, particularly when paired with a decent set of alloy wheels. Buyers avoid underpowered examples and don’t like high mileage or damage, the latter being particularly off-putting to buyers.
U PPER MED IU M
MINI-M PV
The upper-medium sector is typified by well-engineered, often high-specification cars that probably represent the best value for money of any sector. The trick for the fleet operator at selling time is to differentiate their product in a crowded marketplace and this means a high specification and a good colour – this sector is often sold on the extras, so air-con is a must and sat-nav and MP3/bluetooth compatibility is increasingly important. Buyers equate high mileage with hard-worked, and anything over 100,000 miles can start to be a turn-off.
Remarketing the mini-MPV is relatively straight-forward as professional buyers see cars from this sector as a good retail prospect and will bid accordingly. As always the car must be valued in line with market sentiment, properly prepared and in clean condition to generate maximum interest from buyers. Diesel models outperform their petrol equivalents in terms of desirability and a good spec and an attractive colour scheme will always stimulate the bidding.
Make sure all the documentation and ancillaries are available at the time of sale – the service history, V5 form, vehicle manual, CD/radio codes and spare key. Clean the vehicle to a high standard.
“
With so much good product around it is hard to go wrong in the supermini sector ▲
”
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MAKING MONE Y WHEN YOUR SELLING YOUR VEHICLES
▲
n STR ATEGY
L A RGE MPV
4X4 / SU V
The MPV is very much a lifestyle vehicle and much of the market has been taken by the highly-competitive mini-MPV sector. Consequently, the larger MPVs are much more price and condition sensitive than a few years ago. The fleet manager remarketing the MPV must start with a realistic evaluation on price – rough, hard-worked examples will struggle unless competitively priced. Good, clean models will find a ready audience if they are in a sober colour – preferably metallic – and the specification is good. Diesel is really the only option as the petrol engines look incredibly thirsty. Removable seats and a flexible load space is a boon for the driver.
Specification on 4x4s is very important and alloys, leather, air-con and, increasingly, sat-nav are favoured in the used market – and make sure the spare wheel is in place, particularly if it is exterior-mounted on the rear-hatch. If you are selecting models for a userchooser list, diesel is increasingly favoured. If you do run petrol models, don’t let them travel too many miles. Even though your 4x4 may never have been further off-road than up a kerb, the used buyer doesn’t know that, so ensure cars are sold with a comprehensive service history. It may well be worth getting a pre-sale inspection done by the auctioneers to further promote buyer confidence.
SM A L L E XECU TIV E
L A RGE E XECU TIV E
If condition is taken for granted, the most important criteria in the small executive sector is specification. Used buyers generally expect an increasingly higher level of specification and nowhere more than on a car with a prestige badge. Low spec examples – typically where an employee has squeezed every last penny out of their car allowance just to get that badge on the nose – need to be sensibly valued, because they will be competing with cars with every bell and whistle imaginable.
It could be said the large executive car is an anachronism from the another era, when the aspiring company manager was judged by the size of his or her car and the badge on the bonnet. Increasingly these days the used buyer is looking for practicality and cheaper running costs in the family car, while younger buyers are firmly entrenched in the supermini sector. However, well-heeled older buyers like the quiet elegance of the BMW 5 Series, Mercedes-Benz E-Class or Audi A6 while the self-employed and entrepreneurial small business owner sees a great value car that still makes a statement. And it will have to be great value – depreciation is steep in this sector. If buying new, don’t scrimp on spec when choosing it.
LUXU RY/ PRE STI GE
LC VS /CO MMERCIA L V EHI CL E S
Successfully remarketing luxury prestige and sports cars calls for a different approach to the ‘bread and butter’ fleet cars. Because of the additional activity required, it is worth consigning cars for sale early which gives your remarketing partner time to get the message across to the buyers. With these vehicles, the right sort of buying power leads to success. Few can afford to spend upwards of £30,000 on a whim, and with such specialist high value vehicles, the pre-sale marketing is critical. Expect to see the typical depreciation curve at 36 months, but remember in real terms this can represent many thousands of pounds because of the high initial cost. Specification must be lavish, with every available option included.
A van is the most commonly-run vehicle by SMEs and, more often than not, is bought as a used vehicle. If you are buying, consider a specialist van auction as you should be presented with a great choice of vehicles of every size and configuration. Remember VAT will be payable in most cases and nearly all examples are sold as seen. If you are selling a commercial vehicle, the best advice is to treat it like a car. Prepare it, clean it and make sure all the documentation is available. If you are selling branded commercial vehicles, consider trade name deletion so the next owner has a clean van to rebrand as appropriate.
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“
Diesel is really the only option for MPVs as the petrol engines look incredibly thirsty
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n WA N T TO K N OW M O R E ?
Scan this QR Code or visit www.mydrivingbusiness. co.uk/sell-my-car
n HE ALTH AND SAFE T Y
TECHNOLO GY
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SAFETY FIRST
There are many safety features available in modern vehicles, but are fleets willing to pay the extra to have these options?
n W H AT T HIS M E A NS FO R YO U Most vehicle accidents are caused by drivers. Training can help, but modern safety technology can also help to eliminate many of the errors that lead to an accident. They cost money to include as options, but they can save money (and lives), too.
I
The European Union has acted to change this, however. All new cars launched this year must have ESC as standard; every car made will have to have it by 2014. Research by European road safety organisation eSafetyAware found that the take up among companies of other safety technology is even lower. More than half of companies running cars (55%) do not have emergency braking on any vehicles, 59% do not have blind sport monitoring and 66% do not have lane support. Research in Germany suggests that almost three out of four rear impact accidents with injuries and fatalities could be avoided with emergency braking systems. And a report by GIDAS (German In-Depth Accident Study) showed that half of all accidents involving cars fitted with halogen headlamps could be avoided if they were fitted with Xenon headlamps. In addition, Xenon lights could avoid 16% of all night time accidents which resulted in injuries or fatalities. Yet take-up of Xenon headlamps on new cars is less than 10% in the UK, although on premium cars it is slightly higher. One director who fits ESC to all his vehicles believes all
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By Stephen Briers magine the scenario: driving along at 40mph, you are suddenly forced to take emergency action, swinging the car one way then the next to avoid an object in the road. The wheels slip on the greasy surface, the back end flips out wide and – to screams from your passengers – the car spins out of control. Now imagine a carbon copy of this situation, only this time the car brakes calmly to a halt – panic over. The difference? Electronic stability control (ESC). This safety device automatically applies individual brakes when it detects loss of steering control to prevent skidding. It has an astonishing impact on the car’s ability to avoid crashing. According to research in America, ESC can reduce the likelihood of a crash by around a third, rising to two-thirds in sports utility vehicles. UK research suggests that ESC reduces the risk of being in a fatal crash by 25%. Yet, unless offered as a standard fitment on a car or van, few companies will spend the money – typically £300-400 – to fit it as an option. Fewer than half of company cars currently on UK roads have ESC.
www.mydrivingbusiness.co.uk ❚ Autumn 2012 ❚ 19
n HE ALTH AND SAFE T Y
TECHNOLOGY
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companies should mandate the technology. “It is always best to equip vehicles with the best safety features on the market and add this into the cost of the vehicle, as drivers will not always pick what is better for them,” he says. “For example, if a driver sees a set of alloy wheels and a lane departure warning system as upgrade options, they will always pick the wheels. But if the feature was a standard feature of the vehicle, they would automatically benefit from it.” So what will companies get out of the investment? From a human perspective, they are improving safety levels for their staff; from a financial perspective, they will reduce accidents, vehicle downtime and third party costs – savings that will far outweigh the upfront investment. Fewer accidents also mean lower insurance premiums.
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And it’s not just the big accidents involving injuries and fatalities that will be affected; the minor incidents will also decrease. Insurer Allianz estimates that around 12% of all ‘not claimed’ crashes could be avoided by Predictive Emergency Braking, which warns drivers of a potential head on crash and applies the brakes if no action is taken. It estimates a saving per incident of around £500. In addition, supplier Bosch claims that 15% of accidents leading to injury or fatality involve a rear-end crash. In these cases, a third of people do not brake at all; almost half did not brake hard enough; 20% applied full braking but too late. “Thirty-eight per cent of accidents would be avoided with a warning; 55% would be avoided with emergency braking,” said Sandra Pastore, head of marketing at Bosch. n How to plan a safe journey – page 38
n SA F E T Y F E AT U R E S O N O F F ER Product
What is it?
Benefits?
Reduces risk of skidding by braking separately on individual wheels.
Eliminates up to 25% of accidents with injuries and 35-40% of accidents with fatalities.
Available now; legal requirement on all new launches this year; all cars 2014.
Detects danger of crash with vehicle in front; warns driver; activates brakes and seatbelt pre-tensioners.
28% fewer rear-end collisions with personal injury.
Available now; becomes law on new cars from 2014.
Screens blind spots to the side of the vehicle.
8% fewer accidents when changing lanes on motorways.
Available now. Standard on high specification vehicles.
Warns if car unintentionally leaves road lane; can also help correct the course of the car.
15% fewer deaths on European roads.
Available now; proposed to become legal standard in 2013.
SPEED A L ERT
Helps drivers keep to correct speed by informing about speed limits and alerts if they exceed them.
20% fewer injuries in urban areas
Available now as a cost option on most cars.
A DA P TIV E / IN T EL LI GEN T HE A D LI GH T S
Optimises road illumination using Xenon or LED technology by continuously adjusting beam pattern.
4% cut in front-to-rear, single driver and run-off road accidents.
Available now as a cost option on most cars.
Assesses driving style for signs of drowsiness, such as lane keeping performance.
Help cut the 25% of serious accidents on motorways caused by over-tired drivers.
Available now, though primarily as an option on premium cars.
Automatic emergency service call-out when an accident occurs.
Save up to 2,500 lives a year; reduce the severity of injuries by 10-15%.
EU proposes eCall mandate from 2014 (UK is yet to sign up to it.
EL EC T RO NI C STA BILIT Y CO N T RO L
EMERGEN C Y B R A KIN G SYST EMS
B LIND SP OT M O NITO RIN G
L A NE SU PP O RT SYST EMS
D RIV ER D ROWSINE SS D E T EC TIO N
EC A L L
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When’s it coming?
“
38% of accidents could be avoided with a warning
”
£500
Amount Predictive Emergency Braking could save per incident
n WA N T TO K N OW M O R E ?
Scan this QR Code or visit www.mydrivingbusiness. co.uk/safety-first/
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Whilst two models may appear to be identical in terms of price or monthly rentals, in reality one could cost you signifcantly more over its life cycle. For the full picture you must consider all the factors, such as the purchase/hire payments, company and personal taxation, fuel economy, servicing, insurance and depreciation. All these considerations and more will impact drivers and business alike and it can be difcult to know where to start. Tat’s where Toyota and Lexus Fleet Services can help with the Complete Car Cost Calculator. Take company car tax, linked to emission bands, as an example. Drivers choosing a low carbon vehicle can reduce their liability to pay “Beneft-In-Kind” tax and by doing so, companies could beneft from increased capital write-down allowances and reduced Class 1A National Insurance payments. As a result, Toyota and Lexus have seen a surge in interest in its low carbon vehicles. Ewan Shepherd, General Manager of Toyota and Lexus Fleet Services observes: “A few years ago fnding a car under the sub 100g/km CO2 threshold would have been difcult and meant compromising on choice. Desirability
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Te latest arrival in the range is Toyota’s innovative new Auris - the model will be available with a choice of three advanced powertrains: Toyota’s award winning petrol hybrid, two petrol options and a refned diesel. Fuel economy and CO2 emissions are exceptional across all engines, particularly in the latest generation hybrid, delivering company savings whilst drivers beneft from a 10% BIK rating, reducing personal tax. With so many factors to consider, Shepherd strongly recommends making sure all the bases are covered. “Tere’s simply too much at stake to make guesses, you owe it to your business to make a professional comparison. Our free business service – the Complete Car Cost Calculator – compares whole life costs accurately. Over a three year lifetime, it could literally save you thousands.” Serviceability
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n B ROA D E R V IEW
WOR K ING IN THE CLOU D
CLOUDING THE ISSUES White and fluffy or a potential storm? Be careful when choosing your cloud…
n W H AT T HIS M E A NS FO R YO U It’s become a buzzword, but what do you need to know about cloud computing? Is it suitable for your business? Will it save you money or make you more efficient? We ask the experts.
62%
Percentage of employees that want to access their software on the cloud
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By Louise Cole loud computing means moving data and business services, either partly or fully, away from a company’s own server base and into internet-based server space. There are two forms of cloud computing, known as ‘infrastructure as service’ or ‘software as service’. It is possible to combine the two. Software as service means using an internet-hosted application which allows companies to track their sales force and customers. Infrastructure as service is the same on-demand model but offers server space and automatic back-up, meaning companies don’t require their own in-house IT team to handle their more complex hardware needs. Virgin Media Business says its recent survey showed that 62% of employees want to access their everyday software on the cloud, and that 10% of public sector staff are already using it. It claims 16% of private firms use it, with 27% planning to in 2012. There can be substantial benefits to cloud computing for the right operation. You can streamline your resources, offer remote working, outsource the hassle and cut duplication. You get a single utility bill, the size of which will be determined by the scale of the cloud access you want, both in terms of storage and applications – it’s all on demand. Mark Heraghty, managing director at Virgin Media
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Business, says: “A good cloud service should give you the freedom to increase the power of the service when it’s needed, and decrease it when it’s not – it should change with your business. Fixed monthly or annual fees shouldn’t be a feature of cloud computing. A true cloud service should be pay-as-you-go, and it should be transparent.” BT Engage IT director Chris Lindsay likens it to buying computing power as a utility. He says SMEs will generally get a better standard of security, easily scaleable hardware and a team of experts to run their systems, in excess of what they could provide for themselves. Prices, he says, start at “a few tens of pounds per month per employee”. It’s worth noting that none of the cloud providers suggest it will save money. They emphasise the quality, flexibility and scaleability of the computing resources a company will have on hand if they use the cloud. Lindsay says security risks are generally lower than with in-house configurations: “Most security risks come from the individuals being careless.” He suggests companies look at cloud computing when they reach a natural transition point. “If I were a new company starting out I wouldn’t look at anything but cloud. For those with established systems, it should be on your consideration list if you are preparing for a sale, having to upgrade your hardware or are making changes.” A better use for in-house resource is examining how IT can grow the business rather than dealing with daily issues.
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n C A SE S T U DY: H OWA R D JACK S O N IT sales recruitment firm Howard Jackson has signed a five-year contract for cloud-based infrastructure with ANS Group. The company has three offices in the UK with 40 staff; the workforce had grown by 50% in six months, its networks needed overhauling and it had no in-house IT resource. ANS is providing its FlexPod solution, with a virtual desktop to employees so they can log in from any of the offices. All licences are included in the cost and the company says it’s now easy to add a new employee to its systems, with a fixed cost per user. It also has an SLA for guaranteed uptime. Howard Jackson MD Peter Ingram says: “We have gone from the hassle of runing an aging infrastructure in-house to just letting ANS run this impressive, next-generation data centre for us. The fact that the solution can grow with our company is reassuring from a cost and an operational point of view.”
Bespoke systems can be uploaded to a cloud infra-structure. However, the more core or bespoke the application, the more sense it makes to keep it in-house. Routine applications which are not data-intensive are best suited to cloud computing as the data is streaming through broadband – graphic-intensive applications such as design or scientific modelling won’t perform well. There are risks to cloud computing and these require careful consideration. You are placing sensitive data on which your company relies in the hands of a third party. Paul Sweeney, managing director of ANS Group, says the industry should develop an insurance premium against business failure which could be included in the fee to reassure customers. Have clear service level agreements and an exit strategy. Most contracts are for at least one year but migrating your data from one provider to another will not be pain-free, even if they use industry-standard platforms. You should also be wary of ‘out of the bag’ solutions: ensure that your IT consultant understands your business before they sell you anything. Mistakes will be costly and hard to rectify. The world may, as Lindsay says, “be moving to the cloud” but companies will face the same issue as those who invested all their marketing in Facebook – a phenomena known as ‘digital sharecropping’: just how tied are you to a provider that now controls all your business data? And what happens if their costs climb in future?
10%
Percentage of public sector staff that already use the cloud
n WA N T TO K N OW M O R E ?
Scan this QR Code or visit www.mydrivingbusiness. co.uk/cloud-computing/
n T H IN G S TO A SK YO U R CLO U D CO NSU LTA N T n Can you explain my business to me as it is now? This is not a one-solutionfits-all job – but you’ll find providers want to sell it as such. Their economies of scale are based on ‘vanilla’ solutions. n How often is data backed up? If the answer is once a day, can you stand to lose a day’s work if it all goes wrong? n How secure is the data? n What are the contract’s terms and penalties? This is very important. How long are you tied in for and do you have any recourse if the system does not perform as expected? n Will I require any software upgrades to make this work – for instance, to synchronise emails or calendars? n Give your consultant a list of KPIs – this will help clarify your mind as to what you require of your IT system. n What happens if your data provider is sold or fails? n Make sure your consultant can be held responsible if those KPIs are not met. This may be harder than it sounds.
www.mydrivingbusiness.co.uk ❚ Autumn 2012 ❚ 29
n BROADER VIE W
THE DRIVING BUSINESS INTERVIE W
‘Innovation is key for survival – you can’t rest on your laurels’ Michelle Mone tells Sarah Tooze why now is a good time to start a business
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The company’s turning point – and one of Mone’s career highlights – came in 2000 when Julia Roberts wore the Ultimo Fixed Gel Plunge in the film Erin Brockovich. “It brought massive coverage,” says Mone, her eyes regaining their sparkle at the memory. “I think in the past 12 years I’ve delivered half-a-billion pounds in PR for the brands we own, which is just a huge amount isn’t it?” And she’s done it without always having a massive budget. Mone had just £500 to launch Ultimo at Selfridges, but still managed to bring Oxford Street to a standstill by hiring actors to dress up as plastic surgeons and call for Ultimo to be banned. Her six weeks’ worth of stock sold out in just three hours. Mone is no stranger to marketing. She headed the sales and marketing team at Labatt Brewers aged just 20 – having left school at 15 with no qualifications. “When I was an office junior I wrote down that I wanted to run the marketing team and I worked my socks off to achieve that,” she says. Mone is a big believer in writing down goals. “I always set myself new challenges,” she says. “Every day is a school day. I’m not the type of person that could do groundhog day – the same boring thing. I’ve got to keep things different.” One of the big lessons she has learnt is to keep innovating. “Innovation is key for survival in business,” she says. “You can’t just rest on your laurels and always think you’re going to be turning over the same amount. You’ve got to try so hard and innovation is key for us. Thirteen inventions in 13 years, that’s what’s kept us going.” Mone has also learned to be more guarded after distributors in America and Canada made off with £1.3 million of her money. “I’ve learned that I can’t instantly trust people. It’s a shame that business makes you toughen up,” she admits. While she was growing the business Mone had to put the family home up as security to the bank four times.
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cottish entrepreneur Michelle Mone is, by her own admission, going through an “unusual time” with her multi-million pound lingerie business. The week I meet her, in London’s Mayfair, she has reason to celebrate. It’s 13 years since the launch of her first Ultimo bra. But Mone doesn’t just have one invention to celebrate. Appropriately, she has 13. She also has reason to be concerned. As Mone sits curled up on the sofa, running her left hand through her long blonde hair, she looks distracted. There’s a hint of sadness in her eyes. “There’s a lot going on,” she says softly. “I can’t really talk about it just now.” On her mind is the future of MJM International (the parent company of Ultimo) which she co-owns with her now estranged husband Michael. The couple separated in December 2011 after 19 years of marriage. When I ask Mone about her husband’s involvement in the business now, she says that MJM is being run as normal, but adds: “That won’t be continuing. We’ll have to wait and see in the next few months how it all pans out. “But Ultimo is my baby,” she adds firmly, her Scottish accent thickening. Mone came up with Ultimo – a gel-filled bra, hailed as an alternative to cosmetic surgery – after wearing an uncomfortable cleavage-enhancing bra at a dinner dance back in 1996. Three years of research and development followed before the Ultimo Fixed Gel Plunge launched in Selfridges. MJM is now a £8.3 million turnover business employing 30 staff in Glasgow and 60 consultants across the UK. It also has 45 employees in its Hong Kong operation and a further 1,200 factory workers in a partnership deal in China.
Michelle Mone – a business timeline 1986: Leaves school aged 15 to find full-time employment to support her family – her father has been struck down by an illness leaving him confined to a wheelchair
1989: Joins Labatt Brewers as an office junior. Within two years she heads up the sales and marketing team
1996: Comes up with the idea of Ultimo and sets up MJM International
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1999: Launches first lingerie innovation, the Ultimo Fixed Gel Plunge, in Selfridges
2000: Wins World Young Business Achiever Award. Also named Business Woman of the Year at the Corporate Elite Awards, London
2001: Joins board of directors for the Prince’s Trust in Scotland. Wins Best Newcomer at the British Apparel Export Awards
2002: Launches the Ultimo Backless Body – her second invention
2003: Launches the Ultimo Miracle Body, a backless and front-less bra
2004: Partners with Wal-Mart to launch Michelle for George in Asda stores
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2005: Attends an engagement with Bill Clinton and Mikhail Gorbachev. Supports the Sultan of Oman in setting up women’s enterprise in the Middle East
2006: Partners with Debenhams to launch Adore Moi by Ultimo
2007: Launches Miss Ultimo and enters the slimming business with Trim Secrets. Also launches Ultimo Shapewear
2009: Partners with Tesco to launch the Diamond Boutique range including a Limitless Bra
2010: Receives an OBE from the Queen for her contribution to business. Launches a range of evening gowns Ultimo Couture in Debenhams
2011: Strikes a deal with Tesco to launch the Bra Queen range
2012: Launches Ultimo Swimwear, SS13 bridal lingerie collection. Enters the beauty market with UTan and USculpt. Secures deal to sell Ultimo in Harrods
www.mydrivingbusiness.co.uk ❚ Autumn 2012 ❚ 31
n BROADER VIE W
THE DRIVING BUSINESS INTERVIE W
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She also had to look to alternative sources of funding such as the Prince’s Trust. However, Mone concedes that funding was far easier to come by then; if she was starting out now she would find it tougher. “I sit on the board of the Prince’s Trust in Scotland and I hear day-in, day-out that companies that are actually making money are being closed down,” she says. “It’s their cash flow that’s the problem. “Banks need to start being more supportive. I don’t think we can blame the banks for everything because a business still needs to be a good business with innovative products, but at the end of the day cash is king. “These businesses are being closed down and they shouldn’t be. The Government should be doing something about it.” I’m surprised to learn that she believes now is “the best time to start a business”. “A lot of companies are cutting back on innovation,” Mone explains. “But retailers are looking for new, exciting things to get people through their door. So if you’ve got a fresh idea and you’ve really done your homework you should go for it.” The recession has made her take extra care with her own “homework”. “We’ve been doing a lot more focus groups and trying even harder to get the product right,” she says. “Before, a customer might have seen a hot pink bra and thought ‘yeah, I’ll just buy it’, but now they really consider their purchase.” Earlier this year MJM entered the beauty market, launching UTan (a self-tanning range) and USculpt, (a range of beauty creams). What advice does she have for other businesses entering a new market? “Make sure your products are right and they can compete before you launch them,” Mone says. “I delayed my launch six months because I thought ‘no, this is not perfect’. “Really research the market and absolutely go after your competitors. That’s what we’ve been doing.” Mone acknowledges that having the right team is a key part of turning a small company into a big one. “You’ve got to have people who are passionate about the business,” she says. “That starts from the top. You need a leader that inspires people and makes people want to do more than they should. When people care about the company, they won’t let you down.” And she believes in being honest with staff. “They always like to know what’s going on,” she says. “Fully tell them the situation and don’t lie to them. If you’re struggling, go ‘listen guys we’re really struggling here and we need you all to go and get this done’.
“ ”
If you’ve got a fresh idea and you’ve really done your homework, you should go for it
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n M J M ’S CO M PA N Y C A R S MJM leases its company cars and employees that qualify are asked what they would like, within reason. “I think my PA has got the best company car,” Michelle Mone says. “She’s got an Audi TT.” Mone drives a Range Rover and an Aston Martin DB9.
“I’ve always been open and honest with my team. It’s the best way. “And if someone is not pulling their weight I don’t really have to say. You’ll get the team sitting next to them telling them ‘you’re not pulling your weight’. That’s what a team does.” For Mone, running a successful business isn’t just about keeping in touch with staff, it’s about speaking to customers too. “I think it’s really important for businesses to be connected with their customers and social media does that,” she says. She has a personal twitter account with more than 148,000 followers. “I love it because you can hear direct from people about good and bad things to help you improve. And obviously to promote your business.” But perhaps the real secret to Mone’s success is her persistence. This year she achieved a long-held dream of seeing her products on sale in Harrods. “It’s always been on my list and I’ve never given up,” she says. “A lot of people who don’t get in after they have presented somewhere will just give up and they’ll never go back. I’ve kept going back and back until maybe they’re sick of me. They think ‘oh well, we’ll let her in’. “I think some of the most successful entrepreneurs around just never ever give in. And I’m one of them.” And when you do finally achieve that level of success Mone believes you should give something back. “You should always work the hardest you can work, play the hardest you can play and always give something back. Successful people that don’t give something back shouldn’t be successful. Because if you don’t do it, who else is going to?” So, what’s next? An Apprentice-style TV show? Becoming one of the Dragons on Dragons’ Den? A full cosmetics range? She responds with a big sigh. “At the moment I can’t say what’s going to happen. I’ve got many things I want to do but I’ve got a big thing I need to get sorted out. And then we’ll see.” If Mone applies the same level of determination to her current big issue as she has to others throughout her life it’s hard to imagine she won’t overcome it. n For top tips and a business plan, which is free to download, visit www.michellemone.com n For more on the Ultimo product range visit www.ultimo.co.uk
n B ROA D E R V IEW
H APPINESS AT WORK
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HAPPINESS AT WORK Workplace wellbeing is becoming an essential investment n W H AT T HIS M E A NS FO R YO U Happy staff are more productive staff. Gone are the days where the stick approach to management gets results: today’s manager needs to empathise, coax and encourage the best from their staff, while understanding that worklife wellbeing is a fundamental motivator – more highly prized than financial rewards.
£26bn
ith politicians in many countries now talking about gross national wellbeing and its importance to the overall economy, a “happiness agenda” is emerging. But how will a national measure of happiness help enhance wellbeing throughout the UK’s workforce, particularly at a time of economic instability, high unemployment and job insecurity? Recently, on a train to Cheltenham from Leeds after giving a presentation to a large retail organisation about happiness in the workplace, I started chatting to a businessman who ran a small company in Exeter. He challenged investment into workplace wellbeing, saying that happiness had little to do with productivity and the bottom line and was just a lot of fluffy stuff. Having now been involved in numerous happiness and wellbeing initiatives in the workplace, it strikes me that an investment in staff wellbeing is an essential business investment. Its absence in the workplace is costly. In the Government’s recent Foresight Programme study on mental capital and wellbeing, it was estimated that sickness absence, presenteeism (being present at work, but contributing little added value to the business) and labour turnover cost the country about £26 billion a year. Incidences of stress-related sickness absence have also
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risen, replacing backache as the main source of work illness. Indeed, the 2009 Boorman review for the NHS into health and wellbeing indicated that savings of more than £555 million could be made from reduced sickness absence if healthier work environments were created. So there is a bottom-line argument for minimising workplace stress and enhancing wellbeing. There is a growing body of evidence to suggest we are motivated at work by issues other than money and that, as long as we are relatively job-secure and earning a reasonable wage, the quality of working life is at least as important. In the Mercer global engagement scale (developed with thousands of workers in the UK, US, Japan, India, Germany, France and China) ‘base pay’ as a motivator comes low down a list of 12 factors that engage workers. Other key factors include: n Respect and how valued and trusted by their organisation employees feel n Type of work and providing good service to customers n The people you work with n Work-life balance Only after these does pay come into the equation. Research has confirmed that there are ways of treating people at work that can make them happier that have little to do with money or bonuses.
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Estimated annual cost to the country of absenteeism, ‘presenteeism’ and high staff turnover
W By Liggy Webb
www.renault.co.uk
BUSINESS CENTRE GUIDE
Renault’s network of dealerships specifically geared up to meet the needs of small businesses
EVANS HALSHAW Address: 1 Bankhead Avenue, Sighthill, Edinburgh, EH11 4BT Tel: 0131 450 5300
LOOKERS COLCHESTER Address: 72-78 Military Road, Colchester, CO1 2AN Tel: 01206 577295
RENAULT LEICESTER Address: 107 Abbey Lane, Leicester, LE4 5QU Tel: 0116 280 1000
EVANS HALSHAW Address: White Rose Way, Doncaster Carr Industrial Estate, Doncaster, DN4 5JH Tel: 01302 363311
LOOKERS STOCKPORT Address: St Mary’s Way, Stockport, SK1 4AW Tel: 0161 333 3366
RENAULT LIVERPOOL Address: Sefton Street, Toxteth, Liverpool, L8 6PZ Tel: 0151 552 8000
ARNOLD CLARK AUTOMOBILES LTD Address: 64 Kirkintilloch Road, Bishopbriggs, Glasgow, G64 2AH Tel: 0141 772 6481
EVANS HALSHAW Address: 610 Penistone Road, Sheffield, S6 2FZ Tel: 0114 251 5100
MOTORLINE Address: Bircholt Road, Parkwood, Maidstone, ME15 9XY Tel: 01622 776477
RENAULT LONDON WEST Address: Western Avenue, London, W3 0RZ Tel: 0208 276 2000
BENFIELD MOTORS Address: 6 Benfield Road, Newcastle Upon Tyne, NE6 5XA Tel: 0191 265 0723
FISH BROTHERS, SWINDON Address: Paddington Drive, Swindon, SN5 7SB Tel: 01793 645645
MOTORLINE Address: Broad Oak Road, Canterbury, CT2 7PX Tel: 0844 822 7103
RENAULT MANCHESTER Address: Trinity Way, Salford, M3 7FT Tel: 0161 252 0000
BRISTOL STREET MOTORS, BRADFORD Address: 113 Thornton Road, Bradford, BD1 2EP Tel: 01274 736440
GRAVELLS Address: Pembrey Road, Kidwelly, SA17 4TF Tel: 01554 890436
MOTORLINE Address: Hilton Road, Ashford, TN23 1EW Tel: 0844 822 7096
SOUTH HUMBERSIDE MOTOR COMPANY LIMITED Address: 226 Victoria Street, Grimsby, DN31 1PH Tel: 01472 348527
BRISTOL STREET MOTORS, EXETER Address: 14A Marsh Barton Road, Marsh Barton Trading Estate, Exeter, EX2 8NT Tel: 01392 423300
HARRATTS LIMITED Address: 339 Denby Dale Road, Wakefield, WF4 3BB Tel: 01924 291829
NESS MOTORS LTD Address: Harbour Road, Inverness, IV1 1LN Tel: 01463 222848
SUTTON PARK MOTOR COMPANY LIMITED Address: Shultern Lane, Cannon Park, Coventry CV4 7AN Tel: 02476 693366
CALLOW MARSH Address: Ross Road, The Callow, Hereford, HR2 8BT Tel: 01432 842000
HOLDCROFT Address: Leek Road, Hanley, Stoke On Trent, ST1 6AT Tel: 01782 214371
PARK’S Address: Whirlies Roundabout, 1 Braeview Place, Nerston, East Kilbride, Glasgow, G74 3XH Tel: 01355 222 722
TOOMEY Address: Service House, West Mayne, Basildon, SS15 6RW Tel: 01268 542626
CHARLES HURST Address: 62 Boucher Road, Belfast, BT12 6LR Tel: 02890 381721
HOLDEN Address: 22 Heigham Street, Norwich, NR2 4TF Tel: 01603 628911
RENAULT BIRMINGHAM Address: 75-80 High Street, Digbeth, Birmingham, B12 0Ll Tel: 0121 252 7000
VOSPERS Address: Marsh Mills Retail Park, Longbridge Road, Plymouth, PL6 8AY Tel: 01752 636399
CITY MOTORS Address: Pioneer Park, Whitby Road, Bristol, BS4 3QL Tel: 0117 972 3030
LIFESTYLE BRIGHTON Address: Carden Avenue, Hollingbury, Brighton, BN1 8AF Tel: 01273 274444
RENAULT CARDIFF Address: 295 Penarth Road, Cardiff, CF11 8UU Tel: 029 2042 1000
WESTOVER POOLE Address: 573 Wallisdown Road, Poole, BH12 5BA Tel: 01202 635000
EVANS HALSHAW Address: Roseville Road, Leeds, LS8 5QP Tel: 0113 2800 200
LIFESTYLE TUNBRIDGE WELLS Address: Spa Garage, Langton Road, Tunbridge Wells, TN4 8XH Tel: 01892 539466
RENAULT ENFIELD Address: 9 Crown Road, Enfield, EN1 1TX Tel: 020 8271 0900
WESTOVER SALISBURY Address: Churchfields Road, Churchfields Industrial Estate, Salisbury, SP2 7PW Tel: 01722 412111
To advertise your approved business centres contact stuart.wakeling@bauermedia.co.uk
n B ROA DE R V IEW
H APPINESS AT WORK
w w w.mydrivingbusiness.co.uk
The wellbeing wishlist
n 1 0 TO P T IP S O N H OW TO B E H A P PY
1
Reduction in absenteeism 2
Improvement in staff engagement
3
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Reduction in stress levels
SO WHAT CAN BE DONE TO MAKE OUR WORKPLACES HAPPIER ENVIRONMENTS? The following approaches may well be beneficial: n Managers with better social and interpersonal skills, who manage people by praise and reward and not faultfinding (because few managers do this). n Individuals need to have more autonomy and control over their work and reduce micro-management. n Shorter working hours culture, with appropriate flexible working arrangements available which people can take up without damaging their careers or feeling guilty. n Manageable workloads and achievable deadlines. n Create a culture where employees feel valued and trusted.
WHAT IS HAPPINESS? The ability to be happy is inside everyone – happiness to a greater degree is a matter of choice. Often people choose to wallow and indulge in pity parties, dragging others down by spreading their negative attitudes. What happiness means to one person by definition will be totally different to another. However, in essence happiness is the ultimate feel-good factor. It is when we feel balanced, healthy, positive and fulfilled. Creating a personal happiness toolkit is a useful resource, especially for the days when we need help to cope better. Being happy helps people to be more capable and in control. Being happier enables them to be more confident, resilient and to bounce back quicker and stronger. The best approach to happiness is to view it holistically. We need to invest time into developing a positive attitude and view problematic situations optimistically. We also need to view our health as we would our pension and invest in our own wellbeing by making healthy choices and exercising. Encouraging individuals to take more personal responsibility is key. Workplace wellbeing is becoming increasingly important as the springboard for improved life balance. It’s a positive and valuable business investment.
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£555m could be saved from reduced sickness with healthier work environments
36 ❚ Autumn 2012 ❚ www.mydrivingbusiness.co.uk
Improvement in mental health Positive staff survey results Increased productivity Reduction in conflict
4 5 6 7
Improvement in communication
8
Better working environment
9
Sustainable wellness culture
10
n C A SE S T U DY: B RI G H T F U T U R E S Cheltenham-based Bright Futures is one of a growing number of organisations that are championing the way forward to help employees feel better about themselves and their lives. Its aim is to understand happiness on a more wholesome level. It worked with The Learning Architect, a consortium founded by Liggy Webb of behavioural skills experts who have developed a range of strategies to help small businesses cope with the demands and pressures of modern life. Bright Futures asked The Learning Architect to deliver an event for 12 office staff. The brief was to deliver a lively and interactive event with focused action plans that would deliver results. The five mini-modules delivered were: n Happy and Healthy Attitude – how to develop a
positive can-do, will and want-to-do mindset n Healthy Body, Healthy Mind – how to develop personal potential and overall performance through exercise and healthy nutrition n The Art of Communication – how to use positive communication skills to improve working relationships n Enjoy the Journey – how to enjoy life and manage stress by developing personal pressure coping mechanisms n Personal Action Plan – how to achieve results by setting objectives and goals and staying motivated. A follow-up evaluation resulted in the following: n Increases in productivity n Reduction in staff turnover n Improvement in staff morale through appraisal n Increase in sales targets achieved n Reduction in absenteeism
The first step is to make a conscious decision to be happy. Choose to be an optimist, not a pessimist. Use the word ‘probortunity’ and actively seek out opportunities. Think consciously about what you think about. Address negativeattitude germs you may be spreading. Choose to be a radiator, not a drain. Avoid blaming other people. Learn from your mistakes and positively move on. Take personal responsibility for all your actions. Remember this is your life and life is what you make it.
n ABOUT THE AU T H O R Liggy Webb is widely respected as a leading expert in the field of modern life skills. As a presenter, consultant and author, she is passionate about her work and improving the quality of people’s lives.
n WA N T TO K N OW M O R E ?
Scan this QR Code or visit www.mydrivingbusiness.co. uk/happiness-at-work/
BUSINESS CENTRE GUIDE Dealerships specialising in small businesses’ needs
ARNOLD CLARK ABERDEEN Address: Wellington Road, East Tullos, Aberdeen, AB12 3BJ Tel: 01224 249777 (contact Mike Johnston) Email: mike.johnston@arnoldclark.co.uk Web: www.dealer.volvocars.co.uk/ arnoldclark/aberdeen
VOLVO CARS NORTH LONDON Address: The Hyde, Edgeware Road, London, NW9 6NW Tel: 0208 200 6733 (contact John Wadeson) Email: john.wadeson@volvocarslondon.co.uk Web: www.dealer.volvocars.co.uk/ volvocarslondon/north
HILDENBOROUGH Address: 140 Tonbridge Road, Hildenborough, Tonbridge, Kent, TN11 9HJ Tel: 01732 832424 (contact Mark Wilson) Email: corporate@hildenborough.co.uk Web: www.dealer.volvocars.co.uk/ hildenborough/tonbridge
SMW BELFAST Address: 19 Boucher Crescent, Belfast, Co. Antrim, BT12 6HU Tel: 0289 068 6000 (contact Brian Gribben) Email: brian.gribben@agnews.co.uk Web: www.dealer.volvocars.co.uk/ smw/belfast
LIPSCOMB MAIDSTONE Address: Performance House, Forstal Road, Aylesford, Kent, ME20 7XA Tel: 01622 882855 (contact Mark Cullen) Email: mark.cullen@lipscomb.co.uk Web: www.dealer.volvocars.co.uk/ lipscomb/maidstone
HARRATTS WAKEFIELD Address: Peel Avenue, Calder Park, Wakefield, WF2 7AU Tel: 01924 243670 (contact Roger Burkill) Email: rburkill@harratts.co.uk Web: www.dealer.volvocars.co.uk/ harratts/wakefield
RIVERSIDE MOTORS (DONCASTER) LTD Address: Riverside House, Wheatley Hall Road, Doncaster, South Yorkshire, DN2 4NL Tel: 01482 629900 (contact Andrew Bond) Email: andrew.bond@riversidemotors.co.uk Web: www.dealer.volvocars.co.uk/ riversidemotors/doncaster
MARSHALL PETERBOROUGH Address: 7 Mallory Road, Boongate, Peterborough, Cambridgeshire, PE1 5AU Tel: 01733 894894 (contact Bryn Dymott) Email: bryn.dymott@Marshallweb.co.uk Web: www.dealer.volvocars.co.uk/ marshall/peterborough
RYBROOK WARRINGTON Address: 37 Winwick Road, Warrington, Cheshire, WA27DH Tel: 0870 241 8803 (contact John Morrison) Email: corporate@rybrookvolvo.co.uk Web: www.dealer.volvocars.co.uk/ rybrook/warrington
KASTNER EXETER Address: Sigford Road, Matford Park, Exeter, Devon, EX2 8NL Tel: 01392 201040 (contact Mat Thresher) Email: mthresher@helstongarages.co.uk Web: www.dealer.volvocars.co.uk/ kastner/exeter
LANCASTER READING Address: Bennet Road, Reading, Berkshire, RG2 0QX Tel: 01189 9658405 (contact Nigel Cook) Email: nigel.Cook@jardinemotors.co.uk Web: www.dealer.volvocars.co.uk/ lancaster
TOLLBAR WARWICK Address: Heathcote Lane, Warwick, Warwickshire, CV34 6SP Tel: 01926 477333 (contact Gary Weston) Email: garyweston@sytner.co.uk Web: www.dealer.volvocars.co.uk/ tollbar/warwick
JOHNSONS OF GLOUCESTER Address: Shepherd Road,Off Cole Avenue, Gloucester, Gloucestershire, GL2 5EP Tel: 01452 525291 (contact David Rees) Email: drees@johnsonscarsltd.co.uk Web: www.dealer.volvocars.co.uk/ johnsons/gloucester
MILL SUNDERLAND Address: 2 Hylton Grange, Wessington Way, Sunderland, Tyne & Wear, SR5 3HR Tel: 0191 516 2804 (contact Keith Johnson) Email: keithjohnson@millvolvo.co.uk Web: www.dealer.volvocars.co.uk/ millgarages/wessington
BRINDLEY WOLVERHAMPTON Address: 141 Wolverhampton Road, Codsall, Wolverhampton, WV8 1HF Tel: 01902 393224 (contact Neal Shaw) Email: neal.shaw@brindley.biz Web: www.dealer.volvocars.co.uk/ brindley/wolverhampton
SQUIRE FURNEAUX LEATHERHEAD Address: 7 Barnett Wood Lane, Leatherhead, Surrey, KT22 7DL Tel: 01372 371933 (contact Nick Webbe) Email: njw@squirefurneaux.co.uk Web: www.dealer.volvocars.co.uk/ squirefurneaux/leatherhead
F.R.F.MOTORS SWANSEA Address: Valley Way, Swansea, Enterprise Park, Swansea, Glamorgan, SA6 8QP Tel: 01792 310999 (contact Gary Barber) Email: garybarber@frf-motors.co.uk Web: www.dealer.volvocars.co.uk/ frfmotors/swansea
RAY CHAPMAN MOTORS YORK Address: Great North Way, York Business Park, Poppleton, York, Yorkshire, YO26 6RA Tel: 01904 789789 (contact John Tunnicliffe) Email: john.tunnicliffe@raychapmanmotors.co.uk Web: www.dealer.volvocars.co.uk/ raychapman/york
To advertise your approved business centres contact stuart.wakeling@bauermedia.co.uk
n HEA LT H & SA F ETY
TRAVEL POL ICIES
PLANNING A SAFE JOURNEY Companies need to be seen to be taking active steps to keep their drivers as safe as possible
n W H AT T HIS M E A NS FO R YO U It’s no simple matter getting from A to B. You have an increasingly vital role to play in ensuring your drivers travel safely, using the most appropriate transportation. Clear policies need to be in place with evidence that they have been read and understood by drivers. Get it right and not only will you save money from fewer accidents, your drivers will be safer and more productive. And, of course, you will comply with your legal obligations.
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By Richard Yarrow hether a business runs a fleet of 100 vans, 10 HGVs or just a single car, it’s vital there are policies in place to protect drivers and the company itself. Failure to comply has serious consequences for both; if an employee is involved in a crash which results in death or serious injury, he or she risks prosecution. But police are obliged to treat such scenarios as a potential scene of crime, and will look for contributing factors which may have caused the accident. If they can be directly linked to poor working practices, or suggest management failings, the company may also face punishment. “Having relevant and accurate policies in place is one of the most important components in the company’s duty-ofcare tool kit,” says Simon Stammers, fleet director of AA DriveTech. “How can drivers comply with the rules and regulations required by their employer if they don’t have access to a written policy which sets out quite clearly what’s expected of them when they are driving for work purposes?”
38 ❚ Autumn 2012 ❚ www.mydrivingbusiness.co.uk
There are obvious issues to be covered by these policies, such as making sure drivers follow the rules of the road and take regular breaks to avoid tiredness. But Stammers believes even they need to be put in writing and reviewed regularly. “It’s also key that drivers read them and somehow verify that they have done so,” he says. “It means if employers are called upon to do so, they can prove a policy was not only issued but read.” Such provision would go a long way to prove the employer had taken all reasonable steps to mitigate risk in the workplace. However, there are dozens more areas which also need to be addressed. The simplest way to understand them is to divide them into three areas – driver, vehicle and journey. For the first, the key ones are that anyone operating a vehicle must undertake to be fit, healthy, not under the influence of drink or drugs, not taking medication which might cause drowsiness and have legally acceptable eyesight. For the vehicle, the driver must ensure it’s roadworthy for every journey and suitable for the job to be done. Seat, steering wheel and head restraint must be correctly
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n C A SE S T U DY: T E S CO.CO M Tesco.com operates more than 3,000 vehicles with more than 10,000 drivers. Despite the size and complexity of the job – delivering online shopping to customers – it’s won numerous safety awards from RoSPA. It might have a level of resource unimaginable to many smaller businesses, but its policies can be replicated on smaller budgets. All Tesco.com’s policies have been drawn up in conjunction with staff, unions and management. They are implemented using an internal training management team which has created a benchmarked national standard. Each potential driver undertakes a standard Tesco interview and map-reading exercise. If all goes well there’s a one-hour driving assessment, followed by a week of ‘buddy driving’ with an experienced staff member. Finally, a day’s training
adjusted, loads must be safety secured and the correct insurance must be in place. The vehicle should be fitted with appropriate handsfree technology if employees are expected to answer the telephone while on the road (though preferably they should pull over to the side of the road). For each of the above, policies should state whether it’s the responsibility of the driver or employer to ensure regulations are adhered to. The journey is the area which needs most coverage. Policies need to address a raft of issues, such as how and when business driving takes place, the risk of distraction from technology such as mobile phones and sat-navs, frequency of rest breaks and use of coffee or caffeine-rich drinks as stimulants. It should also be spelled out when it’s appropriate to use driver assistance systems such as cruise control. In addition, details on when journeys should be taken by public transport are useful to have clarified, as well as when an overnight hotel stop is the safest option. According to research, the risk of accident doubles after four hours’ driving; after six hours it is eight times higher. Rules on towing, aggressive behaviour and road
confirms competence. After that, any blameworthy accidents or speeding incidents result in performance management and additional practical training. “All training and events are entered on our database which will facilitate further targeted training of higher risk drivers,” explains Andrew Kemp, the company’s occupational road risk manager. “Our policies were initially developed to reduce van damage cost, but were further developed when hidden benefits such as a massive reduction in labour turnover came to light.” Annual sessions with all drivers, store-by-store, take place where staff can feed back their experiences and concerns. “The drivers feel valued and motivated as their concerns and ideas are now listened to,” adds Kemp.
rage, driving overseas, carrying animals, accident and breakdown procedure, car sharing and responsibility in the event of parking tickets, speeding fines and other fixed penalty notices should also be put in writing. Rick Wood, training and quality assurance manager at RoSPA, says protection was about more than just having these policies in place. “It’s not just about driver training, but making sure there’s a cultural belief in what the company is doing. They mark out the tick-box companies from those which really support their driving staff.” He says staff communication and involvement were part of a successful formula; don’t just get drivers to read the policies, but use their input to help decide what they cover. A cohesive approach to driving policies will ensure a company complies with all duty-of-care and health and safety requirements, but it does more than that. It demonstrates the business is a responsible employer, keen to manage exposure to risk and also brand reputation. Many fleet and risk management companies offer guidance on drawing up protection policies, and can provide template documents covering all the key issues. For a list of them visit www.fleetnews.co.uk/suppliers.
n D RI V IN G P O L I C Y: K E Y ISSU E S Company car drivers must ensure the vehicle is roadworthy at all times. must 2 Drivers always have a valid driving licence when driving for work purposes. Eyesight checks 3 every two years should be mandatory. must not 4 Drivers drive if they are unfit through the effect of fatigue, drink or drugs. Smoking in 5 company cars is illegal. must wear 6 Drivers seat belts at all times and force rear seat passengers to buckle up too. Spell out your 7 policy on the use of technology, including sat-navs and mobile phones for voice calls and texting. Drivers must 8 inform their employer if they have a medical condition which can affect their ability to drive safely. clear on 9 Be frequency of rest breaks on long journeys and when overnight hotel stays are appropriate. State who can 10 drive the vehicle and when, plus policy on carrying passengers and of what type, e.g. professional colleagues, family, etc.
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n WA N T TO K N OW M O R E ?
Scan this QR Code or visit www.mydrivingbusiness. co.uk/safe-journeys/
www.mydrivingbusiness.co.uk ❚ Autumn 2012 ❚ 39
n THINK DIFFERENTLY
UTILISING THE A SSE T
w w w.mydrivingbusiness.co.uk
LIGHT FLEE
VY FLEET HEA
T
JUST RIGHT
FIGHT EXCESS VEHICLE FLAB Efficient utilisation is key to cutting costs n W H AT T HIS M E A NS FO R YO U Do you need all your company cars and vans? Are they being put to best use? Two simple questions but the answers have major ramifications for profits. Removing vehicles saves money –as long as it doesn’t impact on business operations. Reducing the amount of time vehicles are off-road being repaired boosts productivity. It’s all about utilisation. Here’s how you do it.
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For van fleets, the vehicles may be on the road more often, but there could still be too many, achieving too little for the miles they are driving. In this economic environment, it is a luxury even the largest companies can’t afford, so experts believe SMEs need to start asking some radical questions about vehicle utilisation. In addition to trying to minimise fuel and maintenance costs by cutting out unnecessary journeys and making sure every mile covered is in the best interests of the business, they need to ask whether so many vehicles are needed in the first place. It is a difficult discussion, but one that an increasing number of companies are having. A recent roundtable meeting of managers with responsibility for company cars and vans highlighted the growing importance of utilisation. One manager said: “We are completely focused on utilisation and you have to be as a business nowadays. You have to look at how the business justifies the number of vehicles it operates and you have to be prepared to challenge that view.”
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By John Maslen he secret of success in a small business is having a committed team that always puts in maximum effort, but many companies suffer because one group in particular isn’t pulling its weight – wiping thousands of pounds from the bottom line in the process. The culprits – company cars and vans – are often sitting in the car park doing nothing but costing money. Some may be a critical part of the team, but companies are being urged to check if they can gain pounds by fighting fleet flab and losing a few vehicles. The idea is simple. Everyone would notice if the company had 20 photocopiers, but only really needed one, yet the same often happens with company cars without questions being asked. Rather than company cars being used for business, they become an expensive status symbol, depreciating in the car park while the employees drive a desk instead. A major study into vehicle use in 2010 suggested that in nearly half of all small businesses, company cars were used for an average of two hours per week.
www.mydrivingbusiness.co.uk ❚ Autumn 2012 ❚ 41
NEW MICHELIN PRIMACY 3:
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n THINK DIFFERENTLY
w w w.mydrivingbusiness.co.uk
UTILISING THE A SSE T
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The focus is on ensuring every company vehicle is used effectively, with short-term hire helping to cope with any sudden spikes in demand that won’t justify a long-term investment in vehicle. The next step is to establish set standards and be consistent in ensuring requests for vehicles are justified by a business need. It can be all too easy for line managers to agree to provide a car – or even a car-derived van – to soften the blow of a difficult pay settlement or other issue, but the hidden expenses if this becomes widespread can be crippling. Instead, companies need to push back on requests for vehicles, challenge current useage patterns and educate employees about the costs of adding unjustified vehicles. But how can a company identify how many vehicles it really needs and whether a drastic fleet diet is required? The answer can only lie in detailed analysis and effective management reporting, but the rewards can easily outweigh all the time and effort involved. BT Openreach thinks so. As one of the country’s biggest vehicle operators, the potential savings from identifying under-used vehicles were huge. Each company vehicle was looked at on a monthly basis, with the fleet team studying a huge range of data. It resulted in Openreach, part of BT Group, cutting its vehicle parc of 24,000 vehicles by 2,000 in a single year, slashing £10 million from its cost base almost immediately.
Data proved the key to maximising utilisation and productivity and this will be true for companies of any size, with savings being found in almost every area of vehicle operation. There are various techniques for gathering data on vehicle use, ranging from fuel cards to vehicle tracking technology which is being used by a growing number of businesses. But one of the first steps is having the software to cope with all the information and make sense of what it is saying. Among a range of benefits, according to software firm Jaama, are its ability to identify high cost vehicles, high cost drivers, pinpoint potential fuel savings, maximise utilisation by identifying under used or spare vehicles quickly and help manage downtime. Data from fuel cards can also be a first step towards closely monitoring fuel use and also recording business mileage when filling up. A spokesman for The Fuelcard Company said: “Using fuel cards gives access to detailed reporting and analysis, which monitors driver behaviour. Detailed invoices show who’s spending what and how often they are filling up, allowing training to be tailored appropriately.”
LIGHT FLEE
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VY FLEET HEA
DATA USE IDENTIFIES SAVINGS
JUST RIGHT
Too many vehicles in a fleet will just add unnecessary costs
TELEMATICS OFFERS INSIGHT Many companies are taking the next step in monitoring their vehicles by turning to telematics systems, which provide the most details about whether vehicles are being used effectively. Peter Cakebread, managing director of Marshall Leasing, said: “At a basic level, telematics is useful for accurate mileage capture. The insights that telematics provide can be very valuable and offer genuine benefits for everyone.” Lincoln Security used telematics to maximise utilisation of its fleet. The system it uses, Route Monkey, can help with scheduling, time management and reporting back to clients on service levels. Tony Branch, RSPCA fleet manager, who operates 150 cars and 580 vans, has fitted telematics to his vehicles to enable better routing and more efficient monitoring of shift hours. The system links to dispatch software to send the closest available staff member to each call. As a result, it is expecting a 10% to 15% rise in productivity. In addition, telematics is increasingly becoming the driver’s friend. Research from telematics provider TomTom has revealed 81% of firms operating vehicles are regularly forced to deal with false or mistaken customer complaints, many of which relate to late deliveries or arrivals, which can be countered with telematics records. It is also important to consider the basics when vehicles are off-the-road too. Jon Pinnington, managing director of fleet support company Fleet Complete, said: “A number of our customers have adopted an approach to vary how they maintain their vehicles to gain the optimum productivity by using a mobile SMR provider. This typically cuts average downtime from eight hours to 2.5 hours.”
n C A SE S T U DY: HSB
n C A SE S T U DY: KCI M ED I C A L
Claire Kitto, fleet administrator at HSB, has introduced a risk management programme, driver training and mileage capture as part of a drive to maximise utilisation of her fleet of 330 vehicles. The aim is to minimise downtime by reducing accidents and pinpointing which vehicles are being used most effectively. She said: “There have been changes in driver behaviour and we also now receive more accurate mileage reports. There have been a few moans, but nothing major and the drivers accept that this needs to be done.”
Tonya Dunn, fleet manager at KCI Medical, which operates 120 vehicles, mainly cars, said: “We have reduced our commercial vehicle fleet by introducing job scheduling and using a tracking system to make sure journeys made are necessary. “We have also decided that if a delivery is more than three hours’ driving, then we will use a courier instead. “This has saved lease costs and reduced fuel spend. The courier system was a bit tricky at first, but it has settled down and the route planning with tracking has made things better for the company and taken stress away from the drivers.”
Companies need to educate their employees about the costs of adding unjustified vehicles
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£10m
Savings made by BT Openreach after identifying under used vehicles
n WA N T TO K N OW M O R E ?
Scan this QR Code or visit www.mydrivingbusiness. co.uk/utilise-the-asset/
n C A SE S T U DY: N AT I O N W ID E W IN D S CR EEN SERV I CE S Stuart Sole, director of Nationwide Windscreen Services, said: “We use the Navman tracking system to improve productivity and cost savings. “We reduced fuel usage by monitoring vehicle idle times when at customers’ premises, providing guidance to the drivers’ next calls and we reduced personal use of the vehicles to nothing. “The only initial issues were that the drivers had resentment to the product at first but with training and guidance it is now embraced within the business.”
www.mydrivingbusiness.co.uk ❚ Autumn 2012 ❚ 43
n C ARS
BEST IN CLASS Helping you to choose the best cars for your business n COMPAC T PREMIUM C ARS
Alfa Romeo Giulietta 2.0 JTD-M 140 Veloce
Audi A3 Sportback 2.0 TDI Sport
BMW 1 Series 118d Sport
LEASING PRICE £337 PURCHASE PRICE £23,295 DRIVER APPEAL ✪✪✪✪ FUEL ECONOMY 67.3MPG REPAIR COSTS £2,034 RUNNING COST £21,480
LEASING PRICE £327 PURCHASE PRICE £23,215 DRIVER APPEAL ✪✪✪✪✪ FUEL ECONOMY 62.8MPG REPAIR COSTS £2,046 RUNNING COST £21,750
KEY REASON TO BUY: Stylish with strong driver appeal
KEY REASON TO BUY: Freshest model in the class
KEY REASON TO BUY: Eco-pro mode coaches drivers in fuel efficiency
BEST FOR: Standing out from the crowd
BEST FOR: Fuel economy, space
BEST FOR: Driving experience of rear-wheel drive chassis
DRIVING BUSINESS SAYS
DRIVING BUSINESS SAYS
DRIVING BUSINESS SAYS
For many years Alfa Romeo has built striking cars – among the best looking on the roads – but has failed at many other levels, whether dealer backup, reliability, fleet support or running costs. But the latest generation Alfas seem far more robust and, with a revamped dealer network, more focused business sales team and the adoption of the latest efficient engine technology, it is no longer a big risk to allow drivers to choose an Alfa Romeo.
We’ve yet to get behind the wheel of the latest A3 Sportback, but the three-door version was impressive and this more practical fivedoor hatchback shouldn’t disappoint. The overall effect of a longer wheelbase and weight savings across all areas of the car is a much more enjoyable drive than the previous A3. The A3 Sportback is likely to remain the benchmark at which others in the sector target their rivals.
BMW has addressed space concerns of the original 1 Series by making the secondgeneration car, launched in 2011, 83mm longer, 14mm wider and with a 30mm longer wheelbase. The increased cabin dimensions make most difference in the back where headroom and legroom are much improved. Quality feel is also improved and anyone being given the chance to upgrade their old 1 Series for a new one should be very happy.
LEASING PRICE £372 PURCHASE PRICE £22,495 DRIVER APPEAL ✪✪✪✪✪ FUEL ECONOMY 62.8MPG REPAIR COSTS £1,950 RUNNING COST £23,364
44 ❚ Autumn 2012 ❚ www.mydrivingbusiness.co.uk
* Source: www.comparecontract hire.com * * Source: www.fleetnews.co.uk * * * Source: KeeResources
To read reviews of these models visit: w w w.mydrivingbusiness.co.uk
Why is this important? Every company has different requirements from its cars and vans, whether the priority is lowest costs, best reliability, or driver appeal. Best in class helps you to choose the vehicles most appropriate for your needs. Best performers in each category Any box that is shaded green means that this car or vans has the best value or top rating in that category. Key reasons to buy We have also highlighted key reasons to buy each model and the type of business need each model is best suited to fulfil. Want to know more? Full driver impressions about each car and van is available on the mydrivingbusiness.co.uk website. You can also calculate your running costs.
Lexus CT 200h SE-I
n TERMS EXPL AINED Leasing price* The best price at 3yr/60k miles – with maintenance
Fuel economy The lowest mpg car will also have the lowest CO2
Purchase price The P11D price on which driver’s BIK and employer’s NIC is based
Repair costs Includes servicing and maintenance based on 3yr/ 60k miles ownership
Driver appeal** A car rating based on how good it is to drive and be seen in
Running costs*** Repair and fuel costs and residual value over 3yr/60k miles
Mercedes-Benz A-Class A200 CDI Sport
Volvo V40 D3 SE
LEASING PRICE £338 PURCHASE PRICE £22,590 DRIVER APPEAL ✪✪✪✪ FUEL ECONOMY 62.8MPG REPAIR COSTS £2,220 RUNNING COST £21,780
LEASING PRICE £346 PURCHASE PRICE £22,540 DRIVER APPEAL ✪✪✪✪ FUEL ECONOMY 65.7MPG REPAIR COSTS £2,058 RUNNING COST £21,372
KEY REASON TO BUY: No 3% diesel supplement on BIK tax and employers’ NIC
KEY REASON TO BUY: A great all-rounder
KEY REASON TO BUY: Cool Scandinavian design
BEST FOR: Company car tax
BEST FOR: Customisation with factory options
BEST FOR: Running costs over three years/60,000 miles
DRIVING BUSINESS SAYS
DRIVING BUSINESS SAYS
DRIVING BUSINESS SAYS
With a premium feel but related to the latest Toyota Prius, the Lexus CT is noticeably more refined than its Toyota relation. The engine generates even less noise overall and remains unobtrusive even when flooring the accelerator sends it spinning to more than 5,000rpm during overtaking manoeuvres. As in the Prius, the CT has normal, eco and EV driving modes, but instrument panel lighting changes from blue to red in the Sport position.
Mercedes-Benz has already done well to create a more youthful image for the A-Class through its advertising campaign, and the fact that there is a new choice in the sector with established prestige should make it attractive to drivers who want to make a change from the default premium badge choices. That it should tick all the important boxes for running costs makes the decision of the organisation paying for the car a little easier.
The V40 brings new technology to the sector for the first time, a pedestrian airbag. It inflates to fill the lower half of the windscreen in collisions between 12 and 30mph and will reduce serious injury and deaths by up to 75%, claims Volvo. Inside, the V40’s high-quality switches and ergonomic layout is an evolution of existing models, and continues to feature the floating centre console. A choice of interior mood lights and dashboard configurations is available.
LEASING PRICE £366 PURCHASE PRICE £23,731 DRIVER APPEAL ✪✪✪ FUEL ECONOMY 68.9MPG REPAIR COSTS £1,680 RUNNING COST £22,961
www.mydrivingbusiness.co.uk ❚ Autumn 2012 ❚ 45
mydrivingbusiness.co.uk The Driving Business website is packed with information to help you choose, manage and sell your company cars and vans Vehicles Unsure which vehicle you want? Head to the Find a Car/ Van tool. Want to compare car or van running costs? Our tool provides the calculation based on price, resale value, fuel costs and service, maintenance and repair costs. Here, you can also find out how much tax your drivers will pay and you can read reviews of every key car and van from our experienced road testers.
Managing cost With myriad funding options to choose from, this section will help you decide which is best for your business. You can also get tips to help you reduce your fuel bill while our maintenance advice will ensure your vehicles stay on the road for more of the time – and cost less if you do have problems. This is also the section to compare company car taxation on different models, as well as assessing CO2 emissions.
Sign up to the monthly newsletter – mydrivingbusiness.co.uk/register/ 46 ❚ Autumn 2012 ❚ mydrivingbusiness.co.uk
Safety and compliance Running company cars and vans isn’t simply about choosing which vehicle you want. You have legal obligations to keep staff safe and you can find out what those are in this section – and what the implications are if you fail to comply. Here, we also advise you on how to reduce accident costs and provide details of vehicle safety ratings, as well as offering tips on your drivers’ responsibilities.
Cool Stuff Cool Stuff contains future launches for cars and vans, crazy concepts showcasing new technologies, and any other things that we think will excite or surprise you from the business world. It also includes the Best in Class sections from Driving Business which advise and compare key car and van models that compete in the same part of the market – helping you to decide what’s best for your company.
Business Surgery Business Surgery is where you can ask questions of our experts and find best practice case studies on improving safety or reducing cost. It also contains the ‘Broader View’ articles which explore related areas of business management, such as funding and IT, as well as the big cover interviews from Driving Business – including Richard Branson, Alan Sugar and this issue’s Michelle Mone.
mydrivingbusiness.co.uk ❚ Autumn 2012 ❚ 47
n VANS
BEST IN CLASS Helping you choose the best commercial vehicles for your business n PANEL VANS
Ford Transit Custom 270 Low Roof SWB
Mercedes-Benz Vito Long 110 CDI
Nissan Primastar 2.7T 2.0 dCi SE 115
LEASING PRICE £374 PURCHASE PRICE £18,030 LOAD VOLUME 5.19CU M FUEL ECONOMY 36.2MPG REPAIR COSTS £1,494 RUNNING COST £25,278
LEASING PRICE £300 PURCHASE PRICE £17,480 LOAD VOLUME 5.02CU M FUEL ECONOMY 37.7MPG REPAIR COSTS £1,980 RUNNING COST £26,484
KEY REASON TO BUY: Newest in sector with latest technology
KEY REASON TO BUY: Specialist commercial vehicle network for excellent back-up
KEY REASON TO BUY: High level of equipment in SE
BEST FOR: Fuel economy and low running costs
BEST FOR: Low repair costs, premium badge for superb build quality
BEST FOR: Value for purchase price
DRIVING BUSINESS SAYS
DRIVING BUSINESS SAYS
DRIVING BUSINESS SAYS
The Transit Custom is the first of three vans in the new Transit family. Ford says maximum priority was given to combining the largest possible load box within the Transit Custom’s new shape and particular attention was given to the detailed design of the bulkhead and bodysides to optimise the size and practicality of the load space. New features in the Transit Custom include a load-through hatch in bulkhead which enables loads up to three metres in length, such as pipes or ladders, to be safely carried in an SWB vehicle.
While we wouldn’t exactly describe the new Vito as a quantum leap forward over the old model, the new engines and other upgrades certainly make this van an even more attractive proposition. As the old Vito was no mean performer, most drivers probably wouldn’t notice the difference with the new chassis set-up, but this fresh technology definitely sharpens up the van’s ride and handling. Superb build quality, a three-pointed star and electronic stability control as standard make this van a winner.
One upside of Nissan forming an alliance with Renault in 1999 was that the Japanese firm gained access to Renault’s van range to sell as its own. The Primastar not only shares its badge with the Renault Trafic but is also the same van as the Vauxhall Vivaro – and it’s a cracking good van too, offering a delightful ride and handling experience. It might have a lower profile than the Renault and Vauxhall, but it features all of their attributes, and Nissan’s expertise at understanding the needs of van operators is improving.
LEASING PRICE £485 PURCHASE PRICE £19,295 LOAD VOLUME 5.36CU M FUEL ECONOMY 42.2MPG REPAIR COSTS £1,866 RUNNING COST £24,018
48 ❚ Autumn 2012 ❚ www.mydrivingbusiness.co.uk
* Source: www.comparecontract hire.com * * Source: www.fleetnews.co.uk * * * Source: KeeResources
To read reviews of these models visit: w w w.mydrivingbusiness.co.uk
Why is this important? Every company has different requirements from its vehicles, whether the priority is lowest costs, reliability, or driver appeal. Best in class helps you to choose the vehicles most appropriate for your needs. Best performers in each category Any box that is shaded green means that this car or vans has the best value or top rating in that category.
n TERMS EXPL AINED Leasing price* The best price at 3yr/60k miles – with maintenance
Key reasons to buy We have highlighted key reasons to buy each model and the type of business need each model is best suited to fulfil.
Purchase price The P11D price on which driver’s BIK (if applicable) and employer’s NIC is based
Want to know more? Full driver impressions about each car and van is available on the mydrivingbusiness.co.uk website. You can also calculate your running costs.
Load volume** Capacity of the cargo compartment
Renault Trafic 2.7T 2.0 dCi 115
Fuel economy Lowest mpg also means the lowest CO2 Repair costs Includes servicing and maintenance based on 3yr/ 60k miles ownership Running costs*** Repair costs, fuel costs and residual value over 3yr/60k miles
Vauxhall Vivaro 2.0 CDTi 115
Volkswagen Transporter T28 2.0 TDI Bluemotion
LEASING PRICE £323 PURCHASE PRICE £18,795 LOAD VOLUME 5.3CU M FUEL ECONOMY 37.6MPG REPAIR COSTS £2,040 RUNNING COST £27,426
LEASING PRICE £324 PURCHASE PRICE £18,690 LOAD VOLUME 5.8CU M FUEL ECONOMY 40.4MPG REPAIR COSTS £2,118 RUNNING COST £24,162
KEY REASON TO BUY: Excellent commercial vehicle support from Renault
KEY REASON TO BUY: Widespread dealer network
KEY REASON TO BUY: Excellent all-rounder
BEST FOR: Low lease rate
BEST FOR: Driver appeal (along with Trafic and Primastar)
BEST FOR: Cargo volume
DRIVING BUSINESS SAYS
DRIVING BUSINESS SAYS
DRIVING BUSINESS SAYS
The Trafic was launched in 2001 as part of a partnership with Opel/Vauxhall, so it’s now (along with the Vauxhall Vivaro) the oldest van in the sector. But a number of extensive updates over the past 11 years have ensured it still feels fresh and is a capable vehicle. It’s also very comfortable for the driver with its seat providing excellent support for long days on the road. It’s missing electronic stability control from its standard equipment list, available on some rivals at no cost, but is a venerable campaigner.
The Vivaro still looks great and provides a good drive, despite being the oldest van in the sector (along with the Renault Trafic). It’s competitive with the Trafic on leasing rates and sells well with small businesses and ownerdrivers who buy them as retail customers. Somehow, despite being the same van as the Trafic and Primastar, Vauxhall has managed to liberate some extra space to achieve a cargo volume of 5.3cu m putting it among the best panel vans in this comparison, but behind the VW Transporter and new Ford Transit Custom.
The T5 generation Transporter is a heavily updated version of the T4, but that’s to understate what a great commercial vehicle this is. On the safety front, an improved electronic stability control system is standard, including trailer stabilisation and hill-hold assist, and the brake lights now flash on and off under extreme braking to warn drivers behind. There is also the option of Side Assist, which warns of vehicles in the van’s blind spot, a reversing camera and tyre pressure monitors. It has the most cargo volume in this class in standard form.
LEASING PRICE £321 PURCHASE PRICE £18,220 LOAD VOLUME 5.00CU M FUEL ECONOMY 38.2MPG REPAIR COSTS £1,806 RUNNING COST £25,548
www.mydrivingbusiness.co.uk ❚ Autumn 2012 ❚ 49
n C ARS AND VANS
NE W MODEL S
w w w.mydrivingbusiness.co.uk
COMING SOON...
The new models you need to know about for the next 3 months Using upmarket materials, the Adam is a three-door, four-seater that was unveiled at this year’s Paris motor show, hoping to rival the Fiat 500 as part-car and part-fashion accessory. The Adam offers a high level of personalisation options. Available in three trims from launch – Jam (fashionable/colourful), Glam (elegant/ sophisticated) and Slam (racy/sporty), there are almost unlimited visual combinations, with a wide variety of exterior colours – including two different roof colours – interior colours, equipment and materials. Customers can even choose their headlining, including an LED-lit starlight roof trim. The Adam will be offered with a choice of three Ecoflex four-cylinder petrol engines from launch: a 1.2-litre 70bhp, plus two 1.4-litre engines with either 87bhp or 100bhp. All will be available with optional stopstart technology and have a five-speed manual gearbox.
The Civic 1.6 i-DTEC is on target for Honda’s aim to offer classleading low CO2 emissions for its power output as well as the most efficient engines in the classes its cars compete in. With CO2 emissions of 94g/km and fuel consumption of more than 78mpg on the HONDA combined cycle, the Civic will go up against CIVIC cars such as the Volvo V40 and Volkswagen 1.6I DTEC Golf.
On sale: December
VA U X H A L L ADAM On sale: January
Ford has unveiled a revamped version of the Fiesta, with a new look and the introduction of the 1.0-litre Ecoboost petrol engine. The revised model will feature a new technologies such as the voiceactivated connectivity system Ford Sync and Active City Stop, as well as the European debut of MyKey. Sync enables owners to voice-activate phone calls and music selection from devices connected via Bluetooth.
AUDI A3
On sale: Autumn
FORD F I E S TA On sale: November
The XF Sportbrake range will start at £31,940 on the road for the 2.2D SE Business (which includes standard JAGUAR satellite navigation and Bluetooth), X F S P O R Twith CO 2 emissions from 135g/km. BRAKE Every derivative of the XF Sportbrake will be fitted as standard with selfOn sale: levelling air suspension at the rear November to replace coil springs fitted to the saloon. This system has been developed and tuned to ensure the XF Sportbrake offers identical dynamic attributes in terms of ride and handling as the saloon, while keeping the car level even when fully laden. The 2.2D will be available in either 163bhp or 200bhp options, and both offer 55.4mpg, according to official figures.
www.mydrivingbusiness.co.uk ❚ Autumn 2012 ❚ 51