Driving Business Autumn 2014

DRIVING

Issue 9 Autumn 2014 £4.50

Helping you make better decisions

DELIVER BETTER SERVICE 11 steps from M&S to transform your customer service

DB INTERVIEW Award-winning Pizza Rossa on how crowd funding helps start-ups

THE FUTURE OF DRIVER SAFETY How technology and these simple tips can cut crash rates, save your business money and keep drivers safe

❚ Reduce risks with a journey checklist ❚ What to do after an accident

Y ENT T FE EM AL A S AG CI E AN SP M

Our latest safety innovation We’ve always made the safest cars in the world. Now we’re helping to make safer drivers too, with Co-Pilot: a unique innovation for business from Volvo.

Managing company cars and drivers can be a legal minefield.

Ignorance is no defence, and compliance can be costly. But non-compliance could mean disaster: fines, bad publicity, even a prison sentence.

We’ve developed Co-Pilot with a group of partner organisations to improve driver safety, shrink your compliance workload and cut the costs and risks of driving - for your people and your business.

And best of all, it’s available free of charge when you buy or lease the first new Volvo* for your business. Call the Volvo Car Business Centre on 0844 490 5209 to fi nd out more. *Terms and conditions apply

volvocars.co.uk/CO-PILOT

vco-pilot@volvocars.com

Contents  6

FRONT END

The leasing advantage

ISSUE 9 Autumn 2014

12 Pizza Rossa

SMEs are missing out on business opportunities because their cash is tied up buying vehicles

8 Insight Employees who reimburse their employer for company cars are still liable for BIK, says HMRC



BROADER VIEW

12 The DB interview How crowd-funding helped Corrado Accardi and Luca Magnani to start the award-winning Pizza Rossa

16 Delivering better service Jo Moran outlines the 11 steps she used to transform Marks & Spencer’s customer service



SAFETY MANAGEMENT

22 New technology Increasingly sophisticated safety devices put cars and vans firmly on the road to autonomous driving

26 Driver risk Assessing your employees’ chance of being involved in a crash is the first step to cut accident rates

21

Safety management

8 Opinion

29 Safe driving policies Use our employer’s checklist to lower the risk of road accidents

30 Minimising accident claims Putting a post-accident process in place could save your business thousands in third-party costs



CARS AND VANS

35 Coming soon An early look at future model launches, including the new Volkswagen Passat and MercedesBenz Vito and the facts to appeal to businesses and their drivers

35 Volkswagen Passat www.mydrivingbusiness.co.uk ❚ Autumn 2014 ❚ 3

DRIVING

Helping you make better decisions

Scan this QR code into your smartphone to visit mydrivingbusiness.co.uk

Contact us Driving Business, Media House, Lynch Wood, Peterborough PE2 6EA. Email editorial@mydrivingbusiness.co.uk If you or someone you know is aged between 16 and 24 and is interested in work experience opportunities at Bauer Media, go to www.gothinkbig.com Editorial Editor Stephen Briers stephen.briers@bauermedia.co.uk Deputy editor Sarah Tooze sarah.tooze@bauermedia.co.uk News editor Gareth Roberts gareth.roberts@bauermedia.co.uk Web producer Christopher Smith christopher.smith@bauermedia.co.uk Contributors Catherine Chetwynd, Simon Harris Production Head of publishing Luke Neal Designer Erika Small Associate editor (production) Andrew Ryan Production editor Finbarr O’Reilly Head of project management Leanne Patterson 01733 468332 Project managers Lucy Peacock 01733 468338 Angela Price Kerry Unwin 01733 468327 Advertising Group sales manager Sarah Crown (maternity leave) Group advertisement manager Sheryl Graham 01733 366467 Account managers Wendy Cowell 01733 366472 Laura Holloway 01733 366469 Lisa Turner 01733 366471 Laura Holloway 01733 366469 Stuart Wakeling 01733 366470 Marcus Woods 01733 366468 Publishing Managing director Tim Lucas 01733 468340 Group marketing manager Bev Mason 01733 468295 Office manager Vicky Meadows 01733 468319 Group managing director Rob Munro-Hall Chief executive officer Paul Keenan Subscriptions: subscription@mydrivingbusiness.co.uk Printing: Precision Colour Printing, Telford. © 2014 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.

Welcome Did you switch off during your summer holiday or was the urge to check what was happening back at the office too strong?

If you found yourself logging on to your work emails, you’re not alone – more than half of UK-based office workers do, according to a recent survey by holiday website Travel Republic.

The alternative is to face a bulging inbox. I returned to more than 800 emails after two weeks in the sun. But I count myself lucky – our news editor had more than 1,000 after just a week away.

It makes Daimler’s idea of auto-deleting emails while staff are away pretty appealing (see page 7).

And with no “traffic jam” in your inbox you will have the chance to do much more productive things… such as reading Driving Business.

In this issue, Jo Moran, Marks & Spencer’s head of customer service tells us the 11 things she did to improve the company’s performance, what role social media plays in marketing and what the future looks like for customer service (see pages 16-18).

We’ve also got the lowdown on crowd-funding and how it helped award-winning pizzeria Pizza Rossa to get started (turn to pages 12-13).

And with Business Secretary Vince Cable giving the green light for driverless cars to be tested in UK cities next year, we’ve put together a safety management special (pages 21- 31). It gives you a guide to existing and future safety technology on vehicles, how to manage driver behaviour, make journeys safer and what to do when the inevitable happens – a driver is involved in an accident. Follow our steps and you could save £4,000 in third-party costs.

Sarah Tooze Deputy editor, Driving Business mydrivingbusiness.co.uk ❚

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FRONT END

SMEs ‘waste billions’ by not leasing vans More than three-quarters (77%) of SMEs have never leased a vehicle and more than half (54%) said they were unlikely to consider it, according to a recent survey.

Lex Autolease, which commissioned the survey of about 250 SME decision-makers, said those businesses were missing out on growth opportunities because they had almost £6.7billion tied up in depreciating light commercial vehicles (LCVs).

It estimated that more than two thirds (68%) of the 1.5 million vans and LCVs registered to British businesses were owned

by SMEs and bought using company cash reserves or with a bank loan.

With an average purchase price of £16,448 for a new van, SMEs are faced with a significant capital outlay every time they change their vehicle fleet, which is typically every four years.

In contrast, the average start-up cost of leasing a van is £817 for an initial upfront payment and £221 per month thereafter.

Those businesses that do consider leasing often do so for cashflow flexibility and regular access to new vehicles.

Tim Porter, managing director of Lex Autolease, said: “The billions invested in vehicle ownership could be better used by businesses to pursue new growth opportunities, pay down debts or upgrade essential business infrastructure.”

The survey also revealed how SMEs would invest the additional capital they saved if they leased vehicles rather than purchasing them.

About four out of 10 (43%) said the money would boost their working capital reserves, about a quarter (28%) would invest in new plant, machinery or IT infrastructure, and almost one in five (18%) would reduce their existing borrowings.

Others favoured increasing their marketing activities (15%), expanding or establishing new premises (9%) investing in R&D (8%) and taking on more staff (5%).

Volvo offers small firms free duty of care consultation Volvo has launched an initiative to help smaller fleets meet their duty of care requirements.

The scheme, called Co-Pilot, offers free risk management consultancy from Volvo’s partner Fleet21 and is available to new customers operating up to 20 vehicles.

The consultancy, worth £500, includes a fleet policy and driver handbook (written by legal experts), a licence check and online driver risk assessments.

Organisations with more than 20 drivers will have to pay an additional £19.50 per driver to take advantage of the offer.

Co-Pilot also gives businesses access to a network of partners that will provide discounted services or free advice to SMEs. Partners to date include Driving for Better Business, Transport for London, law firm Weightmans, alcohol- and drug-testing provider Alere Toxicology, dashboard camera provider Roadhawk and driver distraction prevention mobile application provider Romex.

Simon Turner, managing director of Fleet21, said: “We will ensure you are legally compliant and you’ve started on the road to educating your drivers.”

A company can choose to add paid-for options such as driver awareness workshops and training.

Turner said: “Driver training is a ‘nice to have’. It educates drivers, helps reduce accidents and goes some way towards best 6 ❚

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Simon Turner, managing director of Fleet21

practice, but it’s not within the strict realms of what is legally required.”

Companies that take advantage of the free risk management consultancy will need to ensure that they maintain compliance.

Fleet21 typically recommends an annual licence check for drivers with up to three points, a six-monthly check for four to seven points and a check every three months for eight points or more.

Businesses that have policies in place could find they come unstuck during a police investigation if they do not have accurate records and the policy is not seen to be used.

Tim Porter, managing director of Lex Autolease

Tackle company car tax at Small Fleets Conference Small businesses with five to 50 vehicles can find out how to reduce their tax burden at the first Small Fleets Conference, on October 8 at the Heritage Motor Centre, Gaydon.

Driving Business and sister publication Fleet News are teaming up with BMW and leading industry suppliers to present the conference, with guest speakers Andrew Wetters, senior policy adviser for the workplace transport team at the Health and Safety Executive; tax expert David Rawlings, director at BCF Wessex Consultants; and Jay Parmar, director of policy and membership at the British Vehicle Rental and Leasing Association (BVRLA).

Tickets for the event are £99 (ex VAT) and can be booked online at small-fleetconference.fleetnews.co.uk/book. They include lunch, refreshments and entry to the Motor Museum, home to the world’s largest collection of British cars.

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One third of UK employees are not insured when driving for work A third of UK employees that drive as part of their job are not insured for business miles, according to research from telematics company Masternaut.

On average, these drivers clock up 4,708 uninsured business miles a year. Almost one fifth (19%) of the 2,000 respondents said they had had an accident while driving for work.

When asked who would be liable for such an accident, 80% said it would be their

responsibility, while 20% thought it would be their employer’s.

The survey also revealed that the majority of employees (70%) are not provided with any driver training by their employer.

Martin Hiscox, CEO and chairman of Masternaut, said: “Driving for work is recognised as one of the most dangerous occupations and these findings clearly demonstrate a vital need for employers to educate staff on safe driving practises.”

Two-fifths of small businesses don’t shop around at the pumps Small businesses could be losing hundreds of pounds a year on fuel, as a survey has shown that more than 40% of them fail to shop around.

The survey, by TrackCompare.co.uk, also found that only a fifth of businesses regularly top up at the cheaper supermarket forecourts, with the majority admitting to having no overall strategy to find the best fuel options.

According to fuel card provider Fuel Genie,

small businesses could save themselves, on average, up to 3p per litre every time they fill up by using Tesco and Morrisons forecourts with the Fuel Genie fuel card.

Claire Alderson, sales and marketing manager at Fuel Genie, said: “The survey shows that businesses are potentially pouring money down the drain simply by not shopping around.

“Although some businesses are now using a fuel card to save costs, it is still surprisingly low.”

Daimler gives its staff an ‘email holiday’ Car manufacturer Daimler has given its 100,000 employees in Germany the option of using a ‘Mail on Holiday’ service, which automatically deletes emails if they are away.

The sender receives a message, telling them their email has been erased and suggesting an alternative contact.

Wilfried Porth, board member for human resources at Daimler, told the Financial Times: “Our employees should relax on holiday and not read workrelated emails.

“With ‘Mail on Holiday’, they start back after the holidays with a clean desk.

There is no traffic jam in their inbox.

That is an emotional relief.”

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F RO N T E N D

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INS IGH T

HMRC takes on BIK tax avoidance Employees who reimburse employer for company cars are still liable for benefit in kind, says HMRC he taxman is clamping down on employees and directors who seek to circumvent company car benefit-in-kind tax by reimbursing their employer for the full cost, but fail to take ownership of the vehicle.

HM Revenue and Customs (HMRC) has won a number of tax tribunals in which cars have been bought or leased by an employer or director, but for which all costs were reimbursed by the individual.

For example, 12 employees gave up the use of company cars and entered into a leasing contract with their employer.

Each person reimbursed the company for the full leasing cost and, thinking that they therefore did not have company cars, had business mileage reimbursed via the Approved Mileage Allowance Payments (AMAP) rate rather than the lower Advisory Fuel Rate.

However, as the company had provided cars for employees’ use, BIK tax could only be escaped by reimbursing an amount equal to the car benefit, which employees had not done.

In another case, two directors leased MercedesBenz cars, but all payments were debited to the directors’ loan account. Although the directors had

T

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Making this mistake can prove expensive Alastair Kendrick, MacIntyre Hudson

” To use the Driving Business company car tax calculator, visit www. mydrivingbusiness.co.uk/ cars/car-tax-calculator/

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leased the cars and paid for them, the company had signed the lease contract and then provided the cars to the directors by virtue of their employment.

As a result, a BIK tax charge arose, even though the company was not bearing any of the costs.

At the heart of the tribunal rulings is that the company car was obtained by virtue of the employee or director’s employment and title to it was not transferred to the individual. As a result, company car BIK tax is due.

Alastair Kendrick, tax director at accountants MacIntyre Hudson, said: “We are seeing a level of misunderstanding over what constitutes a company car.

“It is not uncommon, particularly in SME businesses and in today’s age of austerity where credit for individuals may be harder to obtain, to find the company using finance to secure funding for a car which an employee or director requires.

“They then come to an arrangement that the individual will make good the cost of acquiring the car to the company.

“What this misses is that the arrangement is via the employer and title to the vehicle does not transfer to the employee. It is therefore a company car and a BIK arises.

“HMRC is unlikely to permit contributions made by the individual to be offset against the benefit as no differentiation between business and private use has been made.

“Making this mistake can prove expensive as the individual has repaid vehicle costs and is also liable for BIK tax.

“The advantage of a lower purchase price or monthly lease rate may be outweighed by the BIK tax, fuel benefit and employer Class 1A National Insurance due.”

Kendrick said HMRC will target any attempt to avoid BIK tax.

“It is a well trodden path as there are an increasing number of examples of employers making arrangements and failing to consider that BIK tax is due. This is particularly the case with directors’ remuneration, which HMRC is looking at in detail.”

HMRC guidance published following the various tribunals reminds employers: “A car benefit charge will apply if the car is made available to the employee, or member of the employee’s family or household, without the employee, or family member, as the case may be, becoming the outright owner of the car.

“It can therefore apply in situations where the car is hired or leased to the employee, whether or not by the employer and whether the arrangement is formal or informal.

“In some cases, the employee pays all the costs incurred by the employer; an arrangement which it is claimed prevents car benefit applying. This is not true. The car benefit conditions are all met in this case and car benefit applies.”

HMRC added that if the car was leased from someone other than the employer it was necessary to determine whether the condition “by reason of the employment” was met in which case BIK tax would be due.

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BROADER VIE W

THE DRIVING BUSINESS INTERVIE W

‘It is in my DNA always to have a plan B, C or D’ Pizza Rossa’s Corrado Accardi and Luca Magnani are building a business with the flexibility to minimise bad decisions, reports Catherine Chetwynd

I

t takes a particular talent to spot and fill a gap in the well covered pizza market, but Corrado Accardi and Luca Magnani did just that with Pizza Rossa, modelled on the popular street food version in Italy, where 15,000 independent pizzerias sell the stuff by the slice.

However, it was not an easy birth. “I had the embryo of an idea for a pizzeria in 2009 and started to think about a business model, but realised I did not know enough about it, so I went to Italy to do a course in professional pizza-making,” says Corrado Accardi.

“When I came back and started looking for a venue, an estate agent told me that someone else was about to start something similar, so I knocked on the door and was employed there for three months as an assistant pizza maker.

“It was a fantastic experience because I joined them three days after they opened and learned from all the teething problems they had, saw all the mistakes they made. They were completely inflexible in the way they made and marketed the pizza, so when problems started to develop, they did not have the agility or flexibility to solve them. At the time, it was probably the best pizza by the slice you could buy in London,” he says.

A LENGTHY HUNT FOR INVESTORS By 2010, Accardi was looking for investors, but says he “did not have the credibility” and gave up. Meanwhile, he did an Executive MBA at the London Business School (LBS) and started to talk about how his experience had shaped him: “A lot of people said I was on to something, so in summer 2012, I went on a flagship entrepreneurship course and it transpired that the new business was not only feasible but appealing as well. So I decided to give it a go.”

It was around this time that Magnani, who worked in marketing and advertising, including seven years at Saatchi’s in the UK and Italy, and 10 years at Time Warner, got involved. Brand expert Dan Einzig, the mind behind Giraffe restaurants, Bubbleology and most recently, the rebranding of Caffè Ritazza also came in as a co-founder and investor. Robin Walker, who had experience of large-scale food production at Danone, Heinz and Northern Foods, came aboard as a non-executive director.

Magnani did a business planning course as part of his MBA, but was advised against giving presentations associated with cafés, restaurants or fast food because they were deemed too easy to fail. But he pressed his 12 ❚

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professor to allow him to present their idea. It was ranked first in the school’s Best Business Plan competition and runner-up in the 2013 European Business Plan of the Year.

The awards have not stopped since and include ‘high potential start-up’, voted by the LBS Incubator; CrowdCube Best Start-Up of the Year 2013 and winner of the 2013 Deloitte Institute of Innovation and Entrepreneurship Founder Award.

However, finding investors again proved difficult, mainly because anyone interested wanted more of the company than Accardi and Magnani were prepared to part with.

CROWD-FUNDING ‘WAS A GAME CHANGER’ In September 2013, they decided to raise a crowd-funding campaign, where investors register online and can put in anything from £10 to limitless amounts.

“That was the game changer,” says Accardi. They chose the largest crowd-funding resource, where campaigns had reached £2 million, because they were looking for £430,000 and other platforms were not big enough.

“It was still early days for crowd-funding and we did not realise that previous successes had not been for start-ups, they had all been established companies, known entities,” says Accardi.

Pizza Rossa raised the required amount in 17 days, £150,000 of which came through in the final four hours.

The average campaign lasts 90 days. “We had to increase the ceiling to £440,000 to give enough skin in the game to one more person,” says Magnani. “He is the largest investor, based on the agreement that he will get franchise rights for Brazil.

“We ended up with nearly 120 backers. It was unprecedented that we had 122 pledges and when the money was called in, 99.1% of them were confirmed, whereas on average, 5% drop out.”

Neither Accardi nor Magnani is afraid of making mistakes. In fact, the first restaurant, in Whittington Avenue, at the heart of the City of London, is a pop-up to allow them to test their assumptions, equipment and operations before eventually opening 12 sites in central London over the next five years. Sites two and three at Moorgate and St. Paul’s are already under negotiation.

“It is a given that we will make mistakes, but at least we are trying to make them in the least fatal way. It is important to allow yourself that, but it is becoming less and less common, especially in big organisations, where people take fewer risks,” says Magnani.

He says a company needs the flexibility and agility to minimise wrong decisions: “If a decision cannot be

Pizza Rossa’s Corrado Accardi and Luca Magnani: ‘It is a given that we will make mistakes, but at least we are trying to make them in the least fatal way’

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“ ”

The quality of product and ingredients are the Italian roots, the British element is speed Luca Magnani, Pizza Rossa

reversed, there must be a way to resolve the problem. Part of that process is to recognise them at an early stage and it is in my DNA always to have a plan B, C or D,” he says.

Pizza Rossa will have 30 to 40 recipes used in a daily rotation of six to 10. The company’s tagline is ‘passion by the slice’ and with that comes a slice of Italian culture and lifestyle.

“We cannot bring good weather, but [we can bring] the feel of it. It is street food, it is very quick but we don’t want to compromise on the quality,” says Magnani.

The idea is aimed at City professionals, he says: “I was in that kind of environment, so I know how it feels to have a quick lunch in the lift going from meeting to meeting or going out and getting a sandwich without even knowing what you are eating. No matter how short your lunch break is, why should you not treat yourself?”

Pizza Rossa’s promise is that customers will be out of the shop within 90 seconds of ordering.

“The quality of product and ingredients are the Italian roots, the British element is speed,” says Accardi.

Technology will play a part, with orders taken on a tablet and tools that show in real time what is happening across all shops, giving insights into customers’ experience rather than just a sales report.

“We will be trying to understand what is working and not working for them,” he says. A loyalty scheme will follow, as will office deliveries.

Pizza Rossa is renting a diesel Iveco Box Van for three months, until they can decide what best fits the company’s commitment to sustainability – environmental, financial and social. Meanwhile, it is transporting its food from the company’s kitchens in Park Royal, north-west London, to the pop-up.

Accardi and Magnani hope both customers and staff will be the brand’s greatest ambassadors. Motivating staff includes good communication.

“We will be open with them and explain where the company is going,” says Accardi. “The key is to develop our own talent, so that they know they can be the managers of tomorrow.”

Magnani adds: “We want them to be proud to be with the brand, to want to talk about it because they love it.” He and Accardi will also be tapping into London’s large Italian community and have already been in touch with the Italian embassy and consulate general.

The two businessmen are living examples of the much quoted, ‘the harder I work, the luckier I get’.

“There is luck such as being there at the right time, so 2010 was not the right time, whereas 2013 was,” says Magnani. “But you have to be open to the possibilities, recognise the opportunity and then exploit it.” www.mydrivingbusiness.co.uk ❚

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BROADER VIE W

M& S

Investment in service = upturn in sales So says Jo Moran, who transformed Marks & Spencer’s fortunes through better service. She outlines the 11 steps behind her success to Sarah Tooze BE CLEAR WHAT YOU WANT TO BE “The start point, as one of my previous bosses said to me, is ‘you have to decide what you want to be when you grow up’,” says Moran.

She cites Ryanair as an example: “It delivers exactly what it says it’s going to deliver. We might moan about paying for a suitcase, but it’s really clear, that’s what you get, that’s what you pay for.”

As for Marks & Spencer: “We were really clear that we wanted to offer friendly, helpful, knowledgeable service to our customers.”

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PUT THE RIGHT STRUCTURE IN PLACE In the early 2000s, Marks & Spencer had become “an incredibly task-focused organisation”, according to Moran. “We had forgotten that the reason we were filling the shelves was so that the customer could buy the pie. We had just got focused on filling the shelves. We used to get a bit annoyed when the customer took the pie off the shelf. We’d forgotten the reason we were there.

“So we spent a huge amount of time on the why – right through our hierarchical structure in stores, from our customer assistants who work on the sales floor to their

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section manager, to their line manager, to our store managers – what’s the reason we’re here? Why do we add value?

“We’ve looked at those roles through the organisation and we’ve been really clear about who is responsible for delivering what to a customer.”

SET SUPPLIERS UP FOR SUCCESS Moran discovered that Marks & Spencer had set its partner City Link a target of every driver delivering 29 flower bouquets an hour.

It created “a Linford Christie-type scenario”, she says.

“The delivery driver would ring the bell, drop the box and run back to the van.”

Now, City Link is tasked with 12 deliveries an hour, giving the driver time to greet the customer at the door.

Marks & Spencer meets with its key partners three times a year and briefs them on what customers are saying and the key things they need to work on. It also invests in its outsourced contact centre.

“We see them as partners rather than suppliers, investing in them and their teams to deliver service on our behalf,” Moran says.

She checks that suppliers are delivering the type of service she wants through audit visits and a quality assurance programme.

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ABOUT JO MORAN

RECRUIT FOR ATTITUDE, NOT JUST SKILL Marks & Spencer has introduced a personality questionnaire to its online recruitment process to filter the number of applicants it receives.

Shortlisted applicants go through to an interview, which takes place in store and is followed by a trial shift.

“We want to see them interacting with colleagues and customers,” says Moran. “We stole that idea from Pret.”

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TRAIN PEOPLE AND SUSTAIN THAT TRAINING Training is critical, according to Moran. Back in 2004/05, Marks & Spencer held “massive one-off training events” with 3,000-4,000 colleagues attending each day.

“I would probably never replicate those events because they were hugely expensive and very time-consuming to organise. But it absolutely made people sit up and listen, not only in the organisation, but in the industry, that we were serious about putting service back on the map,” says Moran.

She believes classroom-based training has a place, particularly for technical training, but Marks & Spencer is increasingly encouraging employees to “self-help” through the company’s website and intranet.

“Training has got to be consistent and ongoing and drip-fed in, almost on a daily basis,” she says.

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Marks & Spencer’s stores still account for 90% of sales, but online is growing. It has launched a new website after a threeyear programme of investment and development.

“We’re about to turn £800 million online this year and four years ago that was £500m, so the growth has been exponential,” Moran says.

“But we’re finding more and more that people will go online and do their research, but then they want to go in-store and have the experience of talking to the assistants.”

By 2020, Moran expects 85% of sales to be in-store only, with customers that shop across both channels increasing to 25%.

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Jo Moran has worked at Marks & Spencer for 25 years, starting on the graduate programme.

She worked her way through store management and operational roles before becoming head of retail service in 2004, when she was tasked with delivering better service after the brand saw its market share decline sharply.

She became head of customer service in 2011.

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IDENTIFY YOUR CUSTOMER SERVICE CHAMPIONS With customers becoming more demanding and comparing customer service across all organisations, not just similar ones, it’s important to have customer service champions within your business and your supplier base, according to Moran.

“I’ve got champions around the organisation who are ‘mini-me’s – people who truly believe that if you can deliver a great customer experience it will provide a commercial difference to your organisation.”

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LOOK AT WHAT ELSE IS GETTING IN THE WAY “Recruiting the right people and training the right people won’t necessarily make it happen,” says Moran. “Look at the red tape.”

Seven years ago, Moran and a colleague discovered that staff at different stores were doing the same task in lots of different ways, so they created the ‘one best way’ programme. Within four years, they had 400 ‘one best ways’.

“There was even a ‘one best way’ for writing a ‘one best way’, at which point we thought we’d lost the plot,” says Moran.

“What started out with all the best intentions of a standard operating procedure had created bureaucracy and documents that were pages long.

“We’ve now cut the ‘one best ways’ from 400 to 80 and none of them is longer than three pages.”

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“Training has got to be consistent and ongoing and drip-fed in, almost on a daily basis” Jo Moran, M&S head of customer service

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CUS TO M ER E XP ERIEN CE IS N OT O N E-SIZ E- F I T S -A L L

Customer experience is made up of three elements, says Moran: product, environment and service (see diagram).

“Those three circles aren’t always the same size for every customer. If you’re a customer in one of our London food stores at lunch time, the most important thing to you is the product and availability. You’re not really bothered about smiley, happy, friendly service. You want to get through the till.

“Customer experience isn’t a one-size-fits-all, definitely not for every customer and not even for the same customer.

Depending on their shopping mission and the time of day and the type of mood they’re in, those circles are all different sizes and that makes it more challenging.”

PRODUCT

ENVIRONMENT

SE RV I C E

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BROADER VIE W

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M& S

S O CI A L M ED I A IN CUS TO M ER SERV I CE The role of social media in customer service will grow and grow, according to Moran.

Marks & Spencer’s social media team has already increased from two or three people to eight.

“We use social media heavily from a marketing perspective to attract customers to the brand,” Moran says.

Competitions have proved successful. To coincide with Mark & Spencer’s television advertising campaign last Christmas, people were asked to name the dog that appeared in the advert.

“We asked ‘should we call him Magic or Sparkle?’ and we had 14 million hits,” Moran says.

“We run competitions on a consistent basis. Percy Pig famously met his wife Penny – and her name – all through social media.

“We also ask customers to give us feedback: ‘these are our top 10 spring coats, which ones do you like best?’ You get customers involved in the process.”

As well as using Facebook and Twitter for marketing, Moran’s team monitors sites for customer questions or comments. “We’ve learnt a few painful lessons that you have to have a very different type of response,” she says.

“Corporate responses don’t go down well.”

She suggests some companies, particularly in America, are starting to “be more pushy back with customers” when they make unreasonable complaints through social media.

“I do think the shift will start to come that just because you shout loud to two million followers doesn’t mean you’re always going to get your own way,” she says.

IMPROVE OR REMOVE “We’ve spent a lot of time, particularly with our section managers, who are front-line managers and our middle managers, coaching them how to have tough conversations along the lines of ‘that just wasn’t good enough for that customer’; ‘what happened?’; ‘do you understand that’s not acceptable?’,” says Moran.

“It sounds a bit draconian, but we’ve had a real drive on ‘you’ve got to improve and you’ve got to meet our targets or you’ve got to get out’.”

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RECOGNISE PEOPLE WHO DO A GOOD JOB Marks & Spencer used to focus on long service, but now it’s about “great service” and it has a £1 million annual budget to recognise those who deliver it.

However, it also recognises people simply through encouraging employees to write a note when they think one of their colleagues has delivered great customer

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T H E F U T U R E O F CUS TO M ER SERV I CE

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“That raw voice of the customer is growing in importance” Jo Moran, M&S head of customer service

”

Over the past 12 to 18 months the idea that “customer service is a key differentiator” has been growing rapidly, according to Moran.

“There are more and more organisations investing in people to lead it,” she says. “I think the next big challenge is around how do we ensure that we really deliver, across all sectors and all industries, the right skill base to support what I think will be a growing industry?

“How do we encourage people to recognise that being in service is a good career?

“In the States, being in the service economy is seen as a good job whereas in the UK it’s seen a bit as service servitude, dealing with complaints.”

Could there be a shift in attitudes in the future?

Moran smiles: “I’d die a happy girl if we got there.”

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service and leave it on their colleague’s desk. It’s an idea Moran borrowed from a visit to First Direct’s contact centre.

“It’s so powerful and it costs nothing,” she says.

ASK CUSTOMERS WHAT THEY THINK Earlier this year, Marks & Spencer launched a new website, which it worked on with customers, asking for their views on design and layout, for example.

“You can close the gap between customers’ expectations and where you are by getting them to work with you,” says Moran. “Lots of organisations do that, not necessarily face-to-face but through online forums.”

Marks & Spencer also asks customers what they think through a customer satisfaction programme, with one in 10 customers asked to fill in an online customer satisfaction survey.

The challenge then is thinking about how to use that feedback to create “a cycle of improvement”, according to Moran.

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KEEP IT HONEST “Keeping it honest is about using what customers are telling you, not what you ask them,” says Moran. “The problem with research is that it tells us what we want to know.

“Whether it’s our mystery shop programme or our customer satisfaction programme or exit surveys or customer panels, we’re in control. We’ve written the survey, we’re doing the analysis, we’ve invited the customers. What I like to do is to use the thousands of contacts I get every week and feed that into the organisation at board meetings.

“That raw voice of the customer is growing in importance, particularly through social media.”

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SAFE T Y MANAGEMENT

VEHICLE SAFE T Y

Pushing safety to its limits Increasingly sophisticated safety devices put cars and vans firmly on the road to autonomous driving

By Simon Harris he introduction of Euro NCAP in 1997 gave buyers the ability to compare safety standards between similar-sized cars.

Initially, the test was about so-called passive safety systems – the effectiveness of the structure of the car in protecting occupants – as well as seatbelts and airbags.

As the tests have become more stringent, there has been a secondary focus on active safety systems – features on vehicles that can prevent accidents.

Electronic stability control (ESC) was the first such system to be recognised and rewarded by Euro NCAP. Other active safety systems, often restricted to the options list of premium badge cars, are likely to become more widespread and to pave the way for a future of autonomous driving.

Business Secretary Vince Cable recently gave the goahead for driverless cars to be tested on UK roads from January 2015, bringing autonomous driving closer to reality.

T

WHAT SAFETY SYSTEMS ARE AVAILABLE? ■ Blindspot monitoring: Camera- or radar-based systems, which alert the driver of vehicles approaching behind that are overtaking.

■ Lane departure warning: Usually a camera-based system that alerts the driver when the vehicle appears to drift toward a lane marking. It will result in an audible alert or a vibration through the steering wheel that simulates running over a rumble strip. Using the indicator to change lanes can override an alert when there is no approaching traffic.

■ Lane-keeping assist: In cars with electric power steering, these can apply direct steering input to prevent a vehicle seeming to drift inadvertently out of a lane. For cars with hydraulic power steering, the system can apply braking to an individual wheel to correct the car’s line.

The latest systems can also identify the risk of leaving a lane on a single carriageway road into an oncoming vehicle on the other side of the road and intervene if necessary, correcting the wayward vehicle’s trajectory.

■ Speed alert: Working with a camera that recognises road signs, or with data about the road network in the sat-nav system, the speed alert can display a speed limit sign on the instrument display or on the sat-nav screen.

■ Autonomous emergency braking: These systems can help in two ways: by identifying critical situations and alerting the driver or by intervening to help avoid collisions or reduce the severity of an impact. They can also reduce the cost of the vehicle’s insurance.

■ Attention assist: A system that monitors driving behaviour for clues to a driver’s drowsiness. If it detects a driver getting tired, it emits a warning to prevent them 22 ❚

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A lot of the autonomous drive technologies are already available on cars – adaptive cruise control, park assist, lane keeping with auto steer, autonomous braking and so on Volvo spokesman

” For more on risk management, visit mydrivingbusiness.co.uk/ safety/

falling asleep momentarily while driving and prompts them to take a break.

■ Automatic emergency call (eCall): A system that sends an automatic message to an emergency call centre in case of a crash. In a serious crash that incapacitates the driver, or in a remote area, valuable time may go by before a crash is reported. The eCall system reports the incident, giving the car’s location via GPS. It is expected to become mandatory for new cars across Europe.

■ Pre-crash safety: Several manufacturers have developed systems designed to allow a vehicle’s protection systems to operate most effectively during an impact. Some of these react immediately following or during the impact to optimise occupant safety. Using electronic stability control sensors, they can close the windows and sunroof and move electrically-adjustable seats to the optimum position for airbag deployment.

Even if the impact occurs before the seat positions have been reached, occupants will be in a safer position than at the moment before the impact.

■ Advanced headlamps and enhanced vision systems: Adaptive headlights turn their beams around each curve in the road, giving the driver a better view of what is ahead. The most advanced automatic main beam activation can shield oncoming traffic from the full brightness of the headlamps, while others can dip the beam when road users are detected ahead. Night-vision systems further improve visibility.

■ Post-crash braking: After a crash, further damage to other vehicles and road users can be caused by the vehicle involved in the original collision rolling out of control. Some systems are now capable of applying the brakes after an impact.

■ Programmable telematics: Systems such as Ford Sync allow the vehicle owner to set parameters for other users, such as imposing a speed limit.

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Some premium car manufacturers offer systems that reduce the need to accelerate and brake in heavy traffic.

In 2013, Mercedes-Benz introduced a version where, in conjunction with lane-keeping assistance technology, the driver has less need to intervene with the steering wheel.

The system is available on the latest Mercedes-Benz S-Class, a car which the company suggests is introducing us to the era of the autonomous vehicle.

Its parking assistance system can manoeuvre the car into a parking space that is only slightly longer than the S-Class. It will also do the same to guide the driver out of the space, allowing repeated forward and reverse manoeuvres while self-steering. The next level will be for vehicles to park themselves after the driver has left.

THE CONNECTED CAR

INTRODUCING AUTONOMY Optional safety systems are becoming more sophisticated and, while some are based around existing technology, some vehicle manufacturers are seeking to be first with the next stage.

For example, 15 years ago a handful of premium car manufacturers offered adaptive cruise control, which could maintain a set distance with the vehicle in front and adjust speed within the maximum selected for the cruise control. This is now standard equipment on some Volkswagen Golf models and many more cars up to luxury saloons.

In 2014, Infiniti introduced a new development on the Q50 saloon, able to detect whether the vehicle beyond the one immediately in front is slowing, alerting the driver and preparing to intervene by braking before the driver directly ahead has reacted.

ABOVE: Cross-traffic monitors scan parts of the road a driver may not be able to see

BELOW: The MercedesBenz S-Class has a parking assistance system that allows the car to steer itself into and out of a parking space

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When the driver is ready to leave the car park, he or she could locate the car using a smartphone app linked to the car’s GPS, with a ‘honk and flash’ function for the car to make itself known. Volvo may be one of the first manufacturers with one of these systems on the market, although Ford is also planning to introduce it in 2015 on the Edge SUV. A Volvo spokesman says: “In terms of production, it is just a concept at the moment. There are lots of legislative issues to negotiate before autonomous driving of any sort can truly become a reality – however, the technology is there and it works.

“A lot of the autonomous drive technologies are already available on cars – adaptive cruise control, park assist, lane keeping with auto steer, autonomous braking and so on, but it’s the legal side and social attitudes – with people questioning whether there is a need for autonomous cars and whether they would trust a computer to drive the vehicle – that now need serious exploration before they can all be linked to work together autonomously.”

Autonomous vehicles can have benefits in other situations where there is a potential safety risk for the driver and occupants.

Dr Wolfgang Epple, director of research and technology at Jaguar Land Rover, says: “We see the autonomous car taking away the boring, the tedious, the routine part of the journey, while allowing the driver to actively stay in contact, do some work or relax with the vehicle’s infotainment system.”

Jaguar Land Rover’s driving aids include All-Terrain Progress Control, which allows for semi-autonomous off-road driving at slow speed. This system can be used with the driver in the vehicle or, in an extreme off-road situation, the driver may decide that it is safer and easier to inch the vehicle over obstacles from an outside vantage point by remote control. Remote control could also be used as a parking aid or when reversing up to a trailer.

Jaguar Land Rover says reducing driver-induced errors is the key reason for developing more intelligent vehicles, as it claims 99% of accidents are caused by driver error.

“The new driver assistance technologies we will roll out in the coming years have the potential to reduce accidents to zero, but we will ensure the excitement and enjoyment of driving will not be taken away as cars become more autonomous,” says Dr Epple.

“An intelligent Jaguar or Land Rover future vehicle will not take away driving pleasure. The intelligent car can take away the less stimulating parts of the journey, but it will not simply perform a robotic function.”

Another feature that could benefit drivers in difficult off-road situations is smart glass technology, used in the Land Rover Discovery Vision concept car allied to head-up display (HUD) technology in the windscreen. www.mydrivingbusiness.co.uk ❚

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SAFE T Y MANAGEMENT

VEHICLE SAFE T Y

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The intelligent car can take away the less stimulating parts of the journey Dr Wolfgang Epple, Jaguar Land Rover

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Dr Epple believes it offers numerous advantages, including in-car information and improved visibility.

Cameras in the car can project video images onto the smart glass or the HUD, making manoeuvres such as reversing around a corner easier.

The autonomous car is also being developed outside the automotive industry. Google has a long-running self-driving car programme and recently revealed an early prototype vehicle, without steering wheels or pedals.

The technology firm plans to build about 100 vehicles, with initial tests on Google land. To test on Californian roads, Google will have to introduce manual controls.

ABOVE: The latest Ford Transit features adaptive cruise control with forward alert, lanekeeping alert, driver monitoring and a rear-view camera

SAFETY TECHNOLOGY IN LCVS Light commercial vehicles have often played catch-up with cars when it comes to safety features. Apart from a few manufacturers, electronic stability control has only recently been adopted widely on vans, but will become mandatory after October. Driver airbags were uncommon a decade ago and ABS systems also took a while to penetrate the LCV market.

The van market, dominated by outright purchase deals, has been price-sensitive about extra equipment, but

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BELOW: Blindspot monitoring systems can be camera-or radar-based

companies are paying more attention to duty of care for employees, with driver safety and comfort becoming a higher priority.

The latest generation of vans is being introduced with features available that reflect some of the recent advances in car safety technology.

Crosswind assist is a standard feature introduced in 2013 on the Mercedes-Benz Sprinter. It can detect whether the van is in danger of being blown out of the lane and intervene accordingly. The van is also available with a blindspot monitoring system and collision prevention technology as options, features never before available on vans.

ESC systems on vans are also becoming more sophisticated, with sensors able to detect the payload of the vehicle and adjust according to load distribution.

The latest Ford Transit also features safety technology unavailable on its predecessor. It includes adaptive cruise control with forward alert, lane-keeping alert and driver monitoring and a rear-view camera with a trailer hitch assist system.

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SAFE T Y MANAGEMENT

THE DRIVER - TR AINING , MANAGING BEHAVIOUR

Measuring your drivers’ risk is the first step towards improvement Assessing driver behaviour is an emotive but essential task to cut accident rates

By Catherine Chetwynd sk most drivers to rate their driving and the answer will range from realistic to optimistic, but will be rarely less than positive.

It is an emotive subject. Assessing and measuring driver behaviour and, where necessary, taking remedial action, is a task that requires strategy, tact and excellent communication.

Doing nothing, however, is not an option.

“A company has to fulfil duty of care to that driver. By the end, it is not seen as punishment, but as a training opportunity. It is coaching rather than instructing,” says Jayne Bartlett, development manager at the Royal Society for the Prevention of Accidents (RoSPA).

Duty of care and corporate manslaughter legislation make companies responsible for the people they ask to drive on their behalf – be they company car, commercial vehicles, cash-takers or occasional users.

A licence check is a good starting point. This can be done online, but relies on drivers’ honesty and they may not declare penalty points.

The same applies to a visual check. One expert says it is “shockingly easy” for someone to show a clean copy of a licence that carries endorsements. With drivers’ permission, companies can check directly with the DVLA. There are pros and cons to these methods. Checks on paper are labour- and time-intensive.

Online questionnaires make it difficult to monitor the process and although the DVLA route produces the most reliable information, there is a fee (£1.50 per licence enquiry) and not all drivers give permission.

Other details surrounding licences may also be overlooked, including medical conditions that need updating or whether eyesight checks have been carried out every two years.

Chris Chandler, principal consultant at Lex Autolease,

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Companies can capture all data… to give risk ratings for each driver and from that… structure intervention Dr Will Murray, Interactive Driving Systems

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For more on risk management on your business vehicles, visit mydrivingbusiness.co.uk/ safety/

recommends carrying out an audit: “Check fleet policies and practices and validate those to ensure the two marry up.”

To this can be added details of road traffic accidents, dents, maintenance records and fuel efficiency. Then add types of vehicle, journeys made and the times they are made.

This information can be spread around a company – fleet managers, HR managers and line managers may all hold different data that can add up to a clear picture of an individual’s behaviour, so ensuring all parties share information is part of a good strategy.

It is an unfortunate fact that if someone has been involved in one road traffic accident, they are more likely to have another in the near future and certain driver profiles display particular behavioural traits.

Unfashionable though the thinking is, age and gender are relevant.

Simon Elstow, training manager at the Institute of Advanced Motoring (IAM) Drive & Survive, says: “Women are much more risk-averse than men, regardless of age group, they tend to stop sooner than men when they are tired and they are also less likely to be involved in a serious crash or to drive aggressively.”

Assessing drivers’ core competencies – attitude, knowledge, hazard recognition skills – is an important part of the jigsaw.

“Companies can capture all data into a management information system to give risk ratings for each driver and from that, they can start to structure intervention,” says Dr Will Murray, research director for Interactive Driving Systems (IDS).

Low-risk employees may get feedback and computer training; those classed as medium risk may get more feedback and one-to-one or classroom-based assessment, and high-risk drivers may have more detailed one-to-one or in-vehicle assessment.

These methods allow managers to identify bad habits and to communicate more efficient ways to drive.

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CH A N GIN G YO U R D RI V ER CU LT U R E ■

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“Companies then have an audit trail,” says Lex Autolease’s Chandler, whose company uses AA DriveTech for such courses. But driving quality is not the only factor and the cause of any accident or incident may have more to do with the schedule drivers are asked to keep.

Andy Price, head of fleet risk at Zurich Insurance UK, says risk can be mitigated by reducing high mileage.

Could sales teams make the same number of calls more efficiently with better journey planning? Could engineers make fewer trips if they had larger vans to carry more equipment? Are depots in the best places?

“You would think that having better-trained drivers would improve the collision and claim rate, but statistics we see would suggest otherwise,” says Price.

He says the two main success factors are culture and management and often both are overlooked.

“The key thing is around how driver behaviour is managed,” says Murray. “It has to come from the top, either through proactive fleet managers, safety managers, compliance, HR – a stakeholder group of all the significant management usually makes the difference.”

“You have to make it very clear to people how they are going to be evaluated,” Elstow adds.

To inspire engagement, he suggests asking staff: “You might get something out of this, not just for your company but for you and your family. This will hopefully make you safer. Is that worth it?” He says very few people say no.

Assess your company’s exposure – how many drivers, how many cars?

■ Check licences, ideally via the DVLA ■ Examine all insurance claims data ■ Look at the vehicles – what state are they in?

■ Divide drivers into high-, medium- and low-risk Plan intervention or training tailored to those levels Ensure all messages are clearly communicated from the top Continue assessing and communicating policies and practice – bad habits will eventually worm their way back in Document and demonstrate to all concerned the correlation between risk assessment and reduction of accidents and cost

CASE STUDY: BT

BT has a long-standing policy of assessing drivers using IDS online, modifying the tool according to accident history, mileage covered and age of the individual and assigning activities to those who fall into an at-risk category.

“Some are quite good

drivers, so why train them? Some are quite good but need a little education, they are middle risk,” says group safety adviser for BT David Wallington.

“And 8-10% come out as being at risk and needing help and support to understand what the risks are and what additional skills they need to manage those risks effectively.”

BT was approached by someone from Loughborough University, who was looking for a topic for their PhD. “We were keen to get external validation of the interventions we had been running for quite a few years, to see whether

we could demonstrate a statistically significant improvement based on data we had accumulated.

“Training was key in having an impact on accident rates.

The research showed we were getting significantly better performance as a result and there was a strong correlation between the interventions and risk reduction in claim volumes.”

BT’s programme has been so successful that over 10 years, claims across a fleet of more than 34,000 vehicles fell from 59 vehicles per 1,000 to 27 per 1,000 and annual costs were cut by more than £14 million.

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SAFE T Y MANAGEMENT

THE JOURNE Y – REMOVING RISK

The employer’s checklist Safe driving policies can help your business avoid the heavy price of road accidents

One of the most important things employers must do is ensure that their drivers are not at risk of falling asleep at the wheel. Thousands of crashes are caused by tired drivers. They are most likely to happen: ■ on long journeys on monotonous roads, such as motorways ■ between 2am and 6am or between 2pm and 4pm (especially after eating, or even one alcoholic drink) ■ after having less sleep than normal ■ after drinking alcohol ■ if taking medicines that cause drowsiness ■ on journeys home after night shifts.

RAISE AWARENESS As part of recruitment, training and staff appraisal, ensure drivers and managers are reminded of: ■ the danger of falling asleep at the wheel ■ the need for safe journey planning ■ the need to get adequate sleep before starting to drive ■ the dangers of ‘moonlighting’ or spending too long on evening hobbies, social activities or domestic work that limit sleeping time ■ the times of day when sleepiness is most common ■ the early signs of fatigue and what to do about them ■ the risks of making a lengthy home journey after a day’s work away from their normal base.

USE SAFER ALTERNATIVES Where possible, use remote communications such as telephone, email or video-conferencing as a substitute for road journeys or travel by plane or train, which is far safer.

If road travel is unavoidable, maximise car sharing to reduce the number of journeys.

REDUCE DISTANCES

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P RO M OT E SA F E D RI V IN G Develop policies, advice and training for line managers and drivers on: ■ Safe speeds Ensure speed limit compliance and that personal performance schedules do not encourage speeding.

■ Distraction Don’t expect drivers to make or take phone calls, send messages or transact business while driving. Stipulate that these activities must only be done when parked.

■ Impairment Have policies on drink- and drugdriving (including prescription and over-the-counter medicines), and on medical fitness to drive (eyesight, illness).

■ Vehicle checks Carry out before each journey to make sure everything’s working properly, especially tyres, lights, windscreen wipers and all fluid levels.

■ Incident procedures What to do and whom to contact in the event of an incident/emergency. Staff who travel alone or for long distances should have access to a mobile phone, but be advised on its safe use.

Set in-house limits on maximum driving distances per day, per week, per month and per year.

When requiring employees to drive to and from a location to carry out a work task, set reasonable maximum mileages which drivers should not be expected to exceed in a single day.

Support this with clear policies that allow staff to take overnight stops, or ensure the driving can be shared.

Ensure journey scheduling allows sufficient time for drivers to take account of foreseeable weather and traffic conditions and to comply with speed limits.

Schedules should seek to reduce night driving.

Payment by customer contact or ‘job and finish’ regimes must not encourage drivers to disregard road traffic law or the organisation’s own driving rules, standards and policies.

Where employees have to travel a long distance to or from a work location, or the journey is likely to take more than two hours, consider asking staff to travel the night before and stay overnight or stay the night after.

REVIEW SHIFT ARRANGEMENTS Night shifts and rotating shifts cause severe sleeping disruptions. Workers on 12-hour shifts (compared with eight hours) are significantly sleepier at the end of their shift, especially at 7am.

Review shift arrangements to see that these do not lead employees to drive while fatigued.

Where problems are identified, consider providing alternative transport.

AVOID DRIVING IN ADVERSE CONDITIONS Actively discourage driving at night and in adverse weather conditions, particularly fog, very high winds, ice, snow or flooding or where there is a danger of drivers becoming stranded in remote locations.

SPECIFY ‘SAFER’ ROUTES Every journey should be a managed journey.

Require those responsible for journey planning (line managers or drivers themselves) to take account of road type (accident rates are lowest, for example, on motorways and dual carriageways); hazards (road works, accident black spots); traffic densities (time journeys to avoid peak traffic hours); and high-risk features such as schools or busy shopping centres.

MONITOR

CONTROL DRIVERS’ HOURS Set in-house limits for unbroken driving hours, including daily, weekly and monthly limits for all classes of drivers.

As a working rule, no driver should be required to drive continuously for more than two hours without at least a 15-minute break. The drivers’ hours rules for professional drivers are the statutory maximum.

Breaks and break locations should be planned before starting journeys.

OPTIMISE SCHEDULES

For more on risk management on your business vehicles, visit mydrivingbusiness.co.uk/ safety/

There are a number of ways that employers can monitor driver sleepiness.

Managers should discuss the issue with their drivers during periodic performance appraisals.

Journey planning should be monitored, for example, by sampling to see whether safe journey parameters are being observed.

Drivers should be encouraged and thanked for reporting instances when they have experienced sleepiness at the wheel, to share such experiences with colleagues and to see what lessons can be learned.

Crashes while driving for work, particularly those with no other apparent cause, should be investigated to establish whether fatigue may have been a factor. www.mydrivingbusiness.co.uk ❚

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Source: RoSPA

PREVENT DRIVER SLEEPINESS

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SAFE T Y MANAGEMENT

P OST ACCIDENT - HOW TO MINIMISE REPAIR / TP COSTS

What to do after a road accident Whether outsourced or in-house, a robust, well communicated process for how to handle accidents could save your business thousands

By Sarah Tooze ne of your employees reverses into another vehicle, makes a note of the other vehicle’s registration number, but fails to get the third party’s phone number. A day later, he contacts you with the details.

You have no way of contacting the third party, leaving yourself at the mercy of a credit hire company. All you can do is wait. Two months later, you are hit with a bill for £4,000.

Had the driver contacted you immediately and recorded all the necessary information, it could have been a different story. But what the driver does at the scene of an accident isn’t the only part of the accident management process where acting quickly can minimise costs.

Making sure the repairer assesses the damage and carries out the repair in an acceptable timeframe is key.

Reducing a vehicle’s downtime by a day could outweigh the cost of the repair.

Some companies choose to handle the accident management process themselves, but others turn to specialist providers. The provider will usually handle the entire process, from the driver’s initial call through to the claim being finalised and the vehicle being back on the road.

O

STAGE 1 RECORDING THE INCIDENT Businesses need to have policies in place about how quickly an accident must be reported and how a driver goes about reporting it. This should be covered as part of an employee’s induction and be included in the driver handbook.

“Accident management providers will employ service centre agents who are trained to deal with distressed drivers,” says Jim Monteith, head of accident services at RAC. BT Fleet has a helpline and an online system for reporting incidents. Drivers can phone the helpline to provide basic details and give full details online later.

Dr Will Murray, research director at Interactive Driving Systems, says drivers should be trained to discreetly photograph the collision scene, including road markings, damage to all vehicles, the third party driver if they seem 30 ❚

Autumn 2014 ❚

www.mydrivingbusiness.co.uk

£4,000

the costs associated with a non-controlled third-party claim, according to RAC

£1,800 The costs associated with a controlled thirdparty claim

“

There are a number of parties who will… within 30 minutes of an accident be on the phone to [the] third party. They make money every time.

Chris Ryder, National Accident Repair Group

”

suspicious, number plates, positioning of the vehicles, tyre/skid marks and signposts.

It is useful to provide drivers with an ‘at scene bump card’, which should be kept in the vehicle (visit mydrivingbusiness.co.uk/bumpcard for a copy of Interactive Driving Systems’ ‘bump card’).

Ben Creswick, business development director at FMG, says establishing whether the vehicle is still driveable is “vital from a safety point of view and can help to minimise vehicle off-the-road time, as we can pre-order parts and fit them at a more convenient time for the customer”.

Telematics can be used to speed up the accident management process by establishing the circumstances of an accident, such as the vehicle’s speed at the time of the crash.

Tim Eaves, commercial director at Accident Exchange, says the forensic accident reporting tool on its telematics system (In-Car Cleverness) provides accurate reconstruction of incidents, which in turn reduces liability disputes.

RAC’s telematics device even has in-built crash detection capabilities and will notify RAC in the event of a collision. The service centre will then make contact with the driver.

Companies also need to set a policy on collision investigation. Ideally, an interview should be carried out between the driver and their line manager within 24 hours of the incident.

STAGE 2 MANAGING THE THIRD PARTY Recording detailed information at the scene can help the accident management company or insurer determine who is at fault, potentially mitigating expensive thirdparty claim costs.

RAC’s research shows the costs associated with a controlled third-party claim are about £1,800, versus about £4,000 for a non-controlled claim.

Many drivers make the mistake of only considering

w w w.mydrivingbusiness.co.uk

the cost of repairing their own vehicle and not the vehicle they have hit, according to Chris Ryder, UK sales manager at the National Accident Repair Group.

“There are a number of parties who will find the third party’s details through solicitors or otherwise and within 30 minutes of that accident being reported to the insurers be on the phone to [the] third party. They’ll say, ‘Talk to us, you can sue for this, we will repair the vehicle for you, we can give you a courtesy car three grades better than the one you’re driving’. They make money every time.”

An accident management company should handle third party capture – before a credit hire company contacts the third party.

STAGE 3 THE REPAIR PROCESS How long a repair takes and the cost of parts and labour are key factors in the overall cost of a claim.

Carla Kersey, manager of operations – accident and risk at ARI Fleet, says: “The greatest savings can be made by efficiently managing the process and ensuring the vehicle is off the road for the lowest number of days possible.”

When choosing an accident management provider or repairer, it’s important to find out their average off-theroad time. But Shaun Rowley, senior product marketing manager at BT Fleet, warns: “Be careful of companies that say their average off-the-road time is two days. That might be because 70% of their work is dent repair, which is done in an hour and their other repairs take seven days.”

Service level agreements (SLAs)/key performance indicators (KPIs) should be set for vehicle off-the-road time and whether the repairer exceeds the estimated completion date.

One SLA BT Fleet sets is that once the vehicle is on site, the repairer has two hours to prepare the estimate.

An accident management company should chase and help speed up the repair process.

And accident management providers and repair

■ SH O U L D YO U O U T S O U RCE ?

O U T S O U RCED ACCID EN T M A N AG EM EN T

IN - H O USE ACCID EN T M A N AG EM EN T

Pros Expertise – typically have experts from different industries (repair, insurance, legal) Consistent pricing and terms nationwide Potential discounts on parts and labour from volume deals Time and administration saving Accident helpline available 24/7

Pros More control Direct relationships Potentially cheaper if vehicles are concentrated in one area and a national repair network is not required

Cons Management fee and/or rebates may be taken by provider Less control – unless KPIs and SLAs are set in advance

Cons Requires time and resources, ideally a 24-hour helpline Requires expertise May be difficult to establish own repair network if national coverage required, may still need to outsource to a repair network

networks say customers can secure cheaper rates by going through them rather than direct to a repairer.

ARI Fleet’s Kersey says: “A company can benefit from working with an accident management company that buys services and automotive parts ‘in bulk’ and passes these savings on to the client.”

BT Fleet says its parts are 34% cheaper than the national average and its labour rates are 26% cheaper.

The RAC says its clients can expect to pay, on average, £400 less per repair than the industry average by using its approved repairers.

STAGE 4 ANALYSING THE DATA For more on risk management on your business vehicles, visit mydrivingbusiness.co.uk/ safety

Employers should analyse whether certain drivers are repeatedly having accidents, the types of accidents that are happening and at what time of day, month and year they occur. They can then identify whether further driver training is required or take steps to reduce risk. www.mydrivingbusiness.co.uk ❚ Autumn 2014 ❚ 31

8th October 2014 – Heritage Motor Centre, Gaydon, Warwickshire

Small Fleets Conference: get the best from your vehicles and drivers

S

mall businesses are being offered a unique opportunity to share best practice and reduce the cost of operating vehicles.

The first Small Fleets Conference will focus specifically on organisations that run between five and 50 vehicles, and offer insight and expertise that improve efficiency, ensure staff are safe and help save money.

“Typically, small fleets are faced with the same financial decisions as larger operators...”

A line-up of experts from across the fleet industry will cover key topics crucial to driving for business, as well as bring the audience up to date on the latest legislation.

David Rawlings director at BCF Wessex Consultants will consider key messages a smaller fleet should focus on and how they can ensure they generate maximum value from their fleet spend.

He said: “Typically, small fleets are faced with the same financial decisions as larger operators, but they make these decisions less frequently and generally without being able to call upon a team of experts. This lack of experience and expertise often means decisions are made by reference to easily identifiable factors such as lowest rental or list price.

will identify common causes of incidents, which can often lead to serious and sometimes fatal injury and what needs to be done to prevent them occurring.

Jay Parmar, director of policy and membership at the British Vehicle Rental and Leasing Association (BVRLA), will cover the fleet industry manifesto, launched in partnership between the BVRLA, fleet operator association ACFO and Fleet News.

“Advising the smaller fleet operator on the relevance of CO2 emissions, tax and total cost of ownership should help them make the best financial decisions.”

He will also look as how regulation affects fleet operators and look at the impact of the proposed ultra-low emission zone in London in 2020, as well as the more recent changes at the DVLA, including the ending of the paper tax disc and the demise of the driving licence paper counterpart.

Andrew Wetters, senior policy advisor for the workplace transport team at the HSE, will talk about the responsibilities of employers and employees in ensuring workplace transport is operated safely. He

With these and other presentations, insights gained from the conference could be vital in changing practices to making small fleets safer, smarter and most cost effective.

To book your places visit www.smallfleetsconference.co.uk

For more information contact Emma-Louise Kinnaird on 01733 395133 or emma-louise.kinnaird@bauermedia.co.uk

Fleet operator tickets available from £99+vat

Speakers confirmed: Christopher Macgowan

Conference Chair Christopher Macgowan is the former Chief Executive of both The Society of Motor Manufacturers and Traders (SMMT) and The Retail Motor Industry Federation (RMIF) and a former Interim Chief Executive of the automotive industry charity BEN.

Andrew Wetters

Senior Policy Advisor for Workplace Transport Team, HSE Andrew Wetters will be outlining the latest guidance from the HSE and department for Transport as well as the role of management in work-related road safety.

David Rawlings

Director, BCF Wessex Consultants Limited David Rawlings will discuss the relevance of CO2 emissions, tax and total cost of ownership on vehicle purchasing decisions. He will consider how smaller companies can generate maximum value from fleet spend, aided by simple explanations.

Jay Parmar

“

This is an essential event for anyone who wants to keep their company drivers safe and ensure all their vehicles are complying with the law. It’s difficult for smaller companies to stay on top of everything when they are juggling so many priorities, so this conference with provide them with the information to run a more effective operation – one that ultimately will save them money.

”

Stephen Briers Editor-in-chief, Fleet News

Director of Policy and Membership, BVRLA Jay Parmar will offer insight about how vehicle fleets are affected by regulation and the factors you need to consider in order to comply with the law.

Craig Wilson

Finance Director, Core Cut Limited Craig Wilson will be looking at how telematics has helped his fleet to run more efficiently by improving driver behaviour and how the vehicles are used.

Danny Marinovic

Corporate Dealer Operations Manager, BMW Group UK Danny Marinovic will discuss key issues affecting the fleet industry and outline benefits of the BMW & MINI Business Partnership Programme for SME companies. Established in 2008, this Programme, for fleets of less than 50 cars, ensures that guidance is given on all aspects of fleet management.

Session sponsors

8th October 2014 Heritage Motor Centre, Gaydon, Warwickshire Headline sponsors

Advertisement feature

Keeping your staff happy How salary sacrifice can enhance your benefits package at no extra cost

E

very business relies on its people, but attracting and retaining exactly the right calibre of staff is not always that easy. What is proven to make a difference to recruitment and retention success is the benefits package, but small businesses may find it difficult to justify additional expenses and compete with what’s offered by corporate employers. A company-wide salary sacrifice scheme is an innovative solution that delivers benefits to both the SME and its employees. It’s a genuine win:win opportunity.

So what is salary sacrifice? In simple terms, it is a way to offer a company car scheme to all employees, but without the financial and administrative burden for the business. It also provides greater control than the cash-for-car alternative, as individual car choices via the salary sacrifice scheme are made from a selection that falls within the parameters of a company car policy. The cost of each vehicle is simply deducted from each individual’s salary at source and the associated tax savings are enjoyed by both the employer and employee.

Employees who sign up to the scheme are liable for company car tax charged as a benefit in kind, which is calculated from the value and CO2 of their chosen vehicle.

This charge can usually be outweighed by the employee tax and NI savings when those on the scheme select a car with low CO2 and a reasonable value.

Salary sacrifice schemes are quick to set

up, easy to manage and won’t add cost to your business. The benefits soon stack up.

First, it reduces the company’s national insurance bill, which can make a significant difference from the outset. It also enables the business to treat its employees equally with a ‘cars for all’ benefit, which is likely to be immediately popular and avoids any concerns over fairness. This is good for recruitment and retention and makes it easier to compete for high-quality staff in the marketplace.

In addition, staff driving well-maintained, low-emission vehicles help to enhance the company’s brand and to meet its social responsibility targets.

Of course, any company-wide scheme must be genuinely attractive to employees for it to succeed. Your staff will soon see how the financial benefits stack up in their favour. Firstly, a company scheme gives access to significant cost savings when compared with retail prices. As the scheme rolls up the cost of the vehicle, servicing and insurance into one set monthly fee automatically deducted from salary, it makes it much easier to budget for their new car. Many individuals also value the

To find out more, contact Lombard Vehicle Solutions on 0117 908 6490 or visit www.lombardvehiclesolutions.co.uk Lombard Vehicle Solutions is the contract hire and fleet management product provided by ALD Automotive.

Registered address: Oakwood Park, Lodge Causeway, Fishponds, Bristol BS16 3JA.

“Salary sacrifice schemes are quick to set up, easy to manage and won’t add cost to your business. The benefits soon stack up” longer-term benefits, including the fact that they avoid the risks associated with vehicle depreciation and they don’t need to utilise an additional credit line in their own name to finance a new car.

Of course, one of the most attractive and exciting elements of a well thought out and well set up salary sacrifice scheme is at launch, when your staff see the choice of brand new, high-specification cars now available to them at much more affordable prices.

When a company car is not a standard part of the remuneration package for most employees, offering a company-wide salary sacrifice scheme is a solution that is not only attractive and accessible for all – it’s likely to be welcomed by all, too.

■

C ARS AND VANS

Coming soon...

An early look at future model launches and the facts to appeal to businesses VOLKSWAGEN PASSAT

FORD FOCUS FACELIFT

ON SALE: November PRICE: From £22,000 (estimated) CO2: From less than 100g/km (estimated) WHAT’S NEW: The next Passat uses Volkswagen’s new medium car platform. It’s roomier yet lighter and promises hi-tech features new to the upper-medium sector. As well as efficient petrol and diesel engines, there will be a plug-in petrol hybrid for the first time.

ON SALE: Autumn PRICE: From £14,500 (estimated) CO2: From less than 85g/km (estimated) WHAT’S NEW: A sharper look and new technology mark out the midlife facelift for one of the fleet market’s best sellers. A neater dashboard design gives the interior a more upmarket look, while the adoption of a new 1.5-litre diesel engine promises better fuel efficiency.

PEUGEOT 508 FACELIFT

NISSAN PULSAR

ON SALE: Autumn PRICE: From £20,000 (estimated) CO2: From 85g/km WHAT’S NEW: Better fuel efficiency and a more premium feel to the 508 will help Peugeot in its ambition to target Volkswagen. A cleaner dashboard, using the touch-screen display from the new 308, as well as a diesel-hybrid achieving 85g/km, add to the appeal.

ON SALE: Autumn PRICE: From £15,995 CO2: From less than 95g/km WHAT’S NEW: Nissan re-enters a sector it abandoned in the UK with the launch of the Qashqai in 2007. The Pulsar will compete for attention against about 20 lower-medium hatchbacks with a philosophy of offering customers hi-tech features at a good price.

MERCEDES-BENZ VITO

LEXUS NX

ON SALE: Late 2014 PRICE: From £18,000 ex VAT (estimated) CO2: Less than 150g/km (estimated) WHAT’S NEW: Sharing many components with the new MercedesBenz V-Class MPV, the Vito’s engines will be more fuel-efficient and there will be new safety features available, such as crosswind assist and attention assist.

ON SALE: October PRICE: From £29,495 CO2: From 119g/km (estimated) WHAT’S NEW: This is a new sector for Lexus, and targets drivers of cars such as the BMW X3, Audi Q5 and Volvo XC60. A version of the hybrid powertrain from the Lexus = will ensure class-competitive CO2 emissions and BIK tax bands.

www.mydrivingbusiness.co.uk ❚

Autumn 2014 ❚

35

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