I’m drawn to watching the apprentice because the producers of the show seem to have brought together the usual group that will inevitably make good television!
Billed as the “cream of UK’s entrepreneurial management” one can only cringe at how some behave and the delusions that they have of themselves. The best line of the night was when one of the men described himself as “good looking too”.

Sympathy for the contestants
However, perhaps I have more sympathy with the contestants this time than in earlier contests. In the past the prize on offer was a job working for Alan, sorry Lord Sugar. Now the prize is £250,000 investment into a business partnership on a 50/50 basis. Thus ensuring Lord Sugar’s continual presence.

On the basis that one chooses ones business partner more carefully than one’s life partner the process seems very one sided when Lord Sugar does all the choosing and ends each edition with…”You’re fired!”

Will the last contestant be brave enough?
When the last contestant is revealed will they, having considered the tedious selection process, Sugar’s knit picking and criticisms and the defence of their own ineptitude in the boardroom week after week, be brave enough to say something like, “Over the past weeks I’ve seen you in action and on reflection I think I’ll find someone else to invest in me”

Now if that were on the cards wouldn’t that make watching the series more fun?

The UK’s proposals for change in welfare reforms and the Armed Forces is underway but business change hasn’t been too noticeable for many. However that is about to change. Large companies have begun to implement significant structural change and much more is on the way, starting with HSBC on 11th May.

HSBC to reduce size of branch network

HSBC is announcing changes to its retail operations in the UK in order to lower their cost to income ratio. According to reports the options being considered include:

1. Sale of a significant number of branches.
2. Relocation of the UK retail Head Office from Canary Wharf to a less expensive location in London
3. Removal of layers of middle management
4. The creation of a new ethos where all sections of the bank must contribute profits or be restructured or sold

It’s likely that the changes will follow a similar pattern adopted by other banks and particularly by Bob Diamond at Barclays Bank where each individual business must contribute to profitability or risk being shut down.

Research determined strategy

A great deal of research has been undertaken by banks to determine the strategy that will be most beneficial. Interestingly TSB telephoned me last week to survey my attitude to service levels within my local bank in St Albans.

Too much change can be destructive

It would seem that wholesale change is likely to be implemented by Stuart Gulliver at HSBC. However, in my experience, too much change all at once can cause unforeseen problems. These include:

1. Change instability. Where one part of the organisation is unable to perform properly because of the change happening further upstream or downstream of the product flow.
2. Change fatigue. where individual teams suffer so much change that it stalls whilst they take a breather to collect their shared breath.
3. Time differences. This is where the people that have designed the change are impatient to implement the change and therefore find themselves in a future time frame where they have a vision of the desired results whilst those affected by the change are still firmly set in the past and will cling onto what they know best. To overcome this time difference there needs time for teams to express concerns without being considered disruptive or anti-sponsors of the change strategy.

Complex and all embracing change warrents Directors and managers to be meeting with teams, regularly and consistently with a similar message and reassurance, even when bad news is being delivered.  

The continuing discussion on banks and bonuses seem to shift between the need to attract and retain people and not upsetting taxpayers who have bailed the banks out.The discussion must have been made more complicated by Barack Obama deciding to restrict bonuses.

In the UK the banks in question are RBS and Lloyds TSB but one must presume that others such as Barclays and even HSBC will be looking at the result with interest.

Could this be the start of moderate salaries and reduced bonuses accross all sectors?

It’s inevitable that as companies such as Barclays, Lloyds TSB, Marks & Spencer and even Tesco suffer reduced profits they are developing a strategy that reduces costs by reducing staff.
 
Such companies then create smaller working teams or integrate the remaining staff into other departments together with their responsibilities.

There is a hidden downside with this strategy.That is that often there isn’t enough time, or motivation due to a sense of emergency, to integrate the new team properly so that they are capable of being as productive as they might be.

Our research, over nine years, into individual and team productivity following the integration of new people shows that only 60% of such changes deliver the results that were anticipated.

Poor communication, lack of understanding of team results and changes in management style all contribute to the potential failure. The result is that costs rise, goals and opportunities are not met and this results in further downsizing.

Companies that are changing their teams need to consider that they are in effect changing the make up of the team dynamic and need to consider a integration period in exactly the same way as if they were to be introducing a new members of staff