Ibec unveils 'Yes' poster campaign

Ibec unveils 'Yes' poster campaign

Social Media: Ignore it at your peril! It’s not going away

This article should be of interest to those of you who are interested in the area of Social Media and the value it brings to a business.

http://www.ssonetwork.com/blog_detail.aspx?id=14928

Outsourcing in the Public Sector in Ireland - where to next?

Having presented last week at Public Affairs Ireland conference titled 'Shared Services and Outsourcing in the Irish Public Service', I came across a similar themed article by Pearse Ryan of Arthur Cox who discusses the topic 'Outsourcing in the Public Sector in Ireland' and he asks ‘where to next?’

http://www.scl.org/site.aspx?i=ed25519

Which industries are more inclined to outsourcing versus shared services?

Some interesting insights into the trends of outsourcing and shared services -

shar.es/gxFAb

 

Cork Company of the Year award

SouthWestern claims Cork Company of the Year Award

What a fantastic way to start the year!!  I am deeply honoured to accept the award on behalf of all the staff at SouthWestern. The timing couldn’t be better.

This is a hugely important time in our growth cycle and winning an award such as this is a great boost to business. We believe SouthWestern and companies like us have a vital role to play in assisting the public sector reform agenda and we look forward to engaging with the relevant stakeholders on that issue. We have developed new products for the financial services sector and we are confident we will grow our business in that area both in Ireland and the UK.

We’re a very proud Cork company and winning such a highly prestigious award is an endorsement of our customer focused approach and the innovative ways we use the latest technology. In these times, it is more important than ever to promote a winning mentality and Cork Chamber  and sponsors Vodafone deserve great praise for helping to foster and develop that in this region.

Have a look at our winning story:
http://www.youtube.com/watch?v=-ykW4Ad8Wt8

LONDON, January 24, 2012 /PRNewswire via COMTEX/ --

Creating Sustainable Cost Management Through Outsourcing

In September 2010, Financial Director magazine stated: "Waxing lyrical on building an economic recovery is all very well, but there is a growing belief that 2013 will be the year a second recession kicks in. Which is why cost cutting is not about to go away, a well-worn topic though it is."

Now this situation is even more pressing.

The recent study of 750 small businesses by the Centre for Economic and Business Research (CEBR) reveals that 78% of small business owners identify rising costs as the most significant threat to their company this year. More than two thirds of firms have seen their profit margins hit by increasing costs over the past three years.

However, KPMG, in their authoritative global survey conducted by the Economic Intelligence Unit, report: "Businesses are under constant pressure to reduce costs, yet many find it hard to do so in a sustainable fashion". The survey included interviews with senior executives in a cross-section of industries and large, midsize and smaller organizations and experts in the field of cost management. It revealed that 9 out of 10 companies are potentially missing out on major opportunities to boost profits.

They found that:

Just eight percent of businesses reach or exceed their targets for cost-saving initiatives

One of the single biggest barriers to achieving these targets is the lack of adequate processes to drive cost reduction

Getting people to assume personal responsibility for cost management is always difficult

The survey concluded that many businesses seem to be aware of this, but too few are acting to redress the situation. Too many firms treat cost reduction as an unpleasant exercise in abstinence; a pressure do the same things only a little bit more efficiently.

KPMG repeated their advice in their recent paper, The Cost Boomerang. "In this environment, businesses that are able to identify and exploit sustainable cost-efficiencies will enjoy significant competitive advantages over their peers: better profit margins, more flexible working capital and a greater alignment for future growth."

While opening this year's Financial Director Summit, Professor Doug McWilliams, founder and chief executive of the Centre for Economic and Business Research, caused a sharp intake of breath among members of the audience listening to his speech. He predicted the end of the euro and added that the kind of annual growth Western nations enjoyed in the decade before the economic crisis would unfortunately be consigned to the past. His thoughts cement the position of cost management at the top of the FDs' agenda - and as something that will be a real leadership issue for the next few years. He stated: "Procurement is an ever more troublesome jewel in the cost-management crown."

In their 'Eight Strategies for Surviving the Downturn', ICAEW offered the advice that "now is a good time to review the structure and cost base of your business critically. Do you have the right business model to see you through the recession and put you in the best possible position to take advantage of the upturn when it comes? If you need to make savings, examine carefully how you can get the best value out of your business and enable your business to emerge leaner and fitter at the end of the recession."

Finally, they ask - 'Is outsourcing a possibility?'

In a recent edition of FM World, the Facilities Management journal, Kevin Stanley wrote: "With cost-cutting still an economic necessity, the question of whether or not to outsource services has never been more relevant. Which is best - insourcing or outsourcing? The issue has long been a source of debate. The key drivers of large-scale outsourcing are cost reduction, efficiency and the expertise, knowledge and support gained from a specialist provider. What better time to put outsourcing to the test than in a recession, when every penny counts?"

In the same article, Richard Thompson, Managing Director of PBMS (UK & Ireland) agreed, "I believe it can. In an economic downturn, outsourcing is a smart way to get your organisation moving forward. Managing processes internally can distract an organisation from focusing on growing the business and can possibly contribute to missing out on growth opportunities. Sometimes people fail to act in this type of economy, to create positive change through a new partnership."

The consensus certainly seems to be turning towards outsourcing cost management.

Established in 1994, Auditel is the premier independent cost and purchase management consultancy in the UK, with over 200 fully-trained specialists. Their services include a free Business Health Check which consists of an examination of all expenditures associated with making effective cost management decisions. This free service coupled with their performance-driven contingency fee model, means the service is totally self-funding. There are no up-front fees, no hidden charges and no extras.

Chris Allison, Auditel's Managing Director, confirms: "As a result of the recession, we've all become a lot more cost-conscious. Everyone understands the need to keep operating expenditure as low as possible. However, to achieve long-term, sustainable savings that take all the direct and indirect costs of products and services into account, you need expert knowledge, buying power and above all, time. With over 3,500 satisfied clients on our books, we can safely say that Auditel's brand of sustainable and ethical cost and purchase management is playing a pivotal role in that equation.

"Our Total Cost of Purchase ® is a holistic way of reducing and managing the costs of doing business. It enables organisations to lower their business costs year-in and year-out. For 2012, we would encourage our existing clients to take a look at some of the less visible items. Cleaning, merchant cards, stationery, alarms, insurance and janitorial supplies and many others, for example, where savings achieved range from 22% to 64%."

Farnham Maltings is a multipurpose arts and community centre set in the heart of Farnham in Surrey, attracting more than 350,000 visitors a year. With savings achieved of 13% on electricity, 26% on telecoms, 13% on gas, 23% on merchant card fees, 47% on franking machines, and 60% on alarms. General Manager Chris Maddocks, affirms:"I see Auditel as another member of my management team and we've got a stream of projects that will keep them busy this year. Auditel offers us lots of guidance and experience and altogether I see the experience as being 100% positive. I wouldn't hesitate to recommend Auditel to any business, large or small."

Merry Christmas and All the Best for 2012

I would like to wish all our clients and staff a very Happy Christmas.

We at SouthWestern look forward to working with you all again in 2012.

Jim.

Public Service Reform

SouthWestern welcomes the recently announced programme of reform for the Public Service in Ireland.  We welcome in particular the establishment of a Reform and Delivery office within the Department so that the 200+ actions highlighted will be managed and followed-through in a rigorous fashion.

SouthWestern today offers the Public Service a flexible partnership that can be tailored to accommodate surges in activity that can be seasonal, reactive or planned as part of a project or campaign.  We have a long history of supporting Public Sector entities in the delivery of excellent services to Ireland's citizens and look forward to developing further solutions as part of the reform agenda highlighted

Value added benefits of a public-private partnership

I was interested to read the views of a NHS director in Family Health Services currently using the Shared Services model as a means to streamline their processes, making them more efficient and cost effective. Read the article below from

Modernising the NHS back office - shared services not just about cutting costs

Director of Family Health Services for NHS SBS Jon Baker joins the debate on transforming the NHS's back office and reducing costs through shared services.

With a budget deficit of over 8%, the government wants the public sector to increase efficiencies, drive down costs and offer greater choice – working with private companies to gain even more value where appropriate. Despite the delays in reform, the NHS is one area in which the government has already experimented with allowing the private sector to run back-office services.

With the changes currently proposed, the emphasis remains on providing an NHS that is focused on patient care, quality and better patient outcomes. Critical to its success is accurate patient data and robust back-office processes to underpin the move to clinical commissioning groups. The shared services model has led the way in demonstrating the transformational change and efficiency savings that can be achieved. However, it is not all about saving money to achieve QIPP targets and the £20bn challenge; it is also about working in partnership to transform and modernise the back office, making it fit to meet the challenges of the future – state-of-the-art technology, governance and data security, and people who really understand the needs of NHS clients.

NHS Shared Business Services (NHS SBS) is jointly owned by the NHS and business services company Steria, and manages Family Health Services, Finance and Accounts, Payroll and HR, and Commercial NHS Procurement for more than 40% of the NHS. The Family Health Services has particularly demonstrated the benefits of the shared services model to really transform the way some back-office primary care services are managed, whilst achieving proven cost savings for the NHS.

There are five core services within Family Health Services, which are:

• Patient registration;
• Medical records management;
• Call and recall for screening;
• Performers list application;
• Payments processing.

NHS SBS provides services for 16 primary care trusts (PCTs) in the East Midlands and North East London, supporting a population in excess of 6.1 million. In addition to core services, it provides individual services, such as GP list validation, bulk mailing and printing, as well as physical medical record storage.

Streamlining and modernising services involves at least 30% savings in operational expenditure; enhanced data security and information governance; successful transfer of NHS staff; and consolidation of multiple operational centres – using a shared services model to achieve efficiency savings, quality improvements and better patient data.

Working in partnership

NHS SBS is one example of successful public private partnership working. In addition to achieving efficiency savings and service transformation, there are many value added benefits, enabling NHS clients to share in the continued success of joint ventures – a true NHS public private sector success story.

http://www.publicservice.co.uk/feature_story.asp?id=17841

Mortgage Arrears – the Supervisory Strategy of the Central Bank of Ireland

Matthew Elderfield, Head of Regulation, Central Bank of Ireland – October 14th, 2011

I attended this UCC FSIC (Financial Services Innovation Centre) and ACOI (Association of Compliance Officers in Ireland) sponsored event last week and found the subject matter of Matthew Elderfield's speech entirely relevant not just to the domestic mortgage sector, but pertinent to all utility providers servicing the Irish market in the current climate.

In his introduction, Mr. Elderfield stated “…I would like to focus on the very difficult issue of mortgage arrears which is a top priority for the Central Bank.  I welcome the opportunity today to outline in turn the different elements of our supervisory strategy in this area.  I will also tell you about the new work the Central Bank is undertaking in this area which will involve setting out our expectations on the structures and processes regulated lenders should put in place to handle their arrears……………..”

“The significant increase in arrears over time is clear  – the number of primary dwelling mortgage loans in arrears of more than 90 days past due, increased from 3.3% in September 2009 to 7.2% in June 2011.”

Such is the challenge of past-due payments, some utilities i.e. electricity, gas and telco providers have already recognised they need to proactively engage with their customer base struggling to pay their bills.
This engagement is not a simple task; it requires an expertise in debt arrears management - expertise in both systems and people.  At SouthWestern, because of our knowledge and experience in such a space, we are working with leading companies in the energy, telecoms and mortgage book sectors, helping them to do just that – recognize the early signals of payment difficulties, engage with their customers fairly and transparently, to offer options, e.g. payment plans or in the case of utilities, pay-as-you-go meters.

Only last week, Bord Gáis reported that “1 in ten customers are in arrears of €100 or more on their bills.  However, the number of customers in arrears of 60 days or more is down from 115,000 in May to 103,163 at the end of September. 

Bord Gáis said it has been proactive in managing the issue of bad debt. The rate of disconnections has fallen 33%, from 3,540 between January and August 2010 to 2,393 between January and September 2011.
The company said disconnection is an "absolute last resort" for customers who do not engage with them to agree a repayment plan or a pay as you go meter.

Bord Gáis has agreed 63,000 payment plans with customers already this year compared with 31,500 for the whole of 2010.
It has installed 13,161 pay as you go meters this year against just under 1,000 in the same period last year.”

By deploying an agreed system of debt management, SouthWestern clients are making significant inroads in their overdue accounts numbers while at the same time maintaining the relationship with their customers for the longer term. 

Our ongoing work with existing clients in the utilities and mortgage book space reflects the good supervisory systems that Mr. Elderfield is looking to achieve in the domestic banking sector.