Lighting the way

The Welsh Assembly Government says it is now trying to streamline business support

A MONTH or so before 2007’s Assembly elections, Cardiff’s now-defunct Chamber of Commerce released Embracing Enterprise, its own manifesto for business that it wanted the new government to adhere to once it assumed power.

The document was not widely read, but it contained some interesting research, gleaned from surveying its own 1,300 members across South Wales. One of the major conclusions it reached from those findings is that the incoming Welsh Assembly Government should set out to rationalise the business support services it provides, arguing that many companies found the plethora of available funding and advice both confusing and disjointed. It advocated replacing that system with a framework that delivered a more consumer-focused approach.

In business leadership, at least, it appears as though the coalition administration also favours this way forward. The Wales Management Council has passed into history, and has been replaced with Leadership and Management Wales, which is based out of Cardiff University under the stewardship of Gary Walpole, head of the institution’s Leadership, Enterprise and Economic Development Unit.

The new organisation’s remit is straightforward – to provide that oft-promised one-stop advice shop for businesses that want to improve leadership in their organisation. The Welsh Assembly Government moved to create the new unit after arriving at the conclusion that ongoing management training is the key to improving competitiveness among Welsh companies.

“Research conducted by the London School of Economics across 4,000 medium-sized businesses across Europe found that those that engaged in leadership skills were more productive,” said Mr Walpole, who specialises in leadership and innovation among SMEs and has carried out research for a number of organisations, including the National Assembly, the Wales Management Council, and Education & Learning Wales. “Similarly, the Department of Trade and Industry has found that British companies spend less on management skills than the rest of Europe – in fact, some 30% of UK businesses have managers with little or no leadership skills.”

This absence of trained managers has not come about through a lack of training provision. In fact, the opposite is the case. “There are plenty of courses out there, through further education and through public sector provision,” said Mr Walpole. “In fact, in 2004, there were over 500 such courses available throughout Wales.

The Assembly realises that it has to smooth the way. A lot of research shows that businesses are confused at what’s on offer. But businesses are not only unsure where to get it – they’re not convinced by the value of it, even if a lot of them believe these skills would increase efficiency and production.”

Leadership and Management Wales will provide two core functions. It will assemble a directory of courses available throughout Wales, complete with information on the skills sets they will deliver. It will also seek out and repackage research that the unit believes is of relevance to Welsh businesses.

Mr Walpole said: “The research would looks at issues like most effective frameworks, lean, and systems thinking. It would look at what SMEs want more of, what they want less of, what are the most effective methodologies, what ideas are having an effect on the bottom line.”

The new unit will not be providing any training itself. However, it plans to help businesses find and choose the most effective provision of leadership skills. It plans to expand its staff, but Mr Walpole says that it likely to happen after the official launch in September. In addition, Leadership and Management Wales will have a centre based in Glyndwr University in Wrexham.

The change in approach from the Welsh Assembly Government has been welcomed, albeit with a little caution, by Russell Lawson, spokesman for the Federation of Small Businesses in Wales.

The Assembly’s approach to business has moved from being about bums on seats to being more demand-led. You will, for example, have a business advisor come in and liaise with a manager as to what’s needed. It’s more attuned to what businesses need. But it’s only just come in. It’s a new system, and I hope that it eradicates the problems we had in the past.”

“Management and leadership is one way that organisations can become more efficient and hopefully more profitable. The Assembly wants to make business more efficient, to help give a leading edge to Welsh business. We want to be a vehicle that is essential to providing information and guidance on what organisations can do, where they can do it, and how effective it is,” said Mr Walpole.

“Now is not the time to batten down the hatches. It’s time to look up and see who can provide support, what support they have, if they are supplying the right thing, and can it be supplied elsewhere. It’s a head-up time, not heads down.”