Sage Blog

Make sure you’re armed with plenty of ‘treats’ this Halloween to avoid the ‘tricks’ meted out by scary skeletons, ghoulish ghosts and …  Little Bo Peep (there’s always one, usually my little girl!).

Don’t miss a trick

We all relish a fright or two at this time of year but in terms of our business and home lives, most of us agree that it’s best to plan for the worst. To keep unpleasant surprises to a minimum from a business perspective, we keep up to date on new legislation (watch this space for news on the upcoming pensions changes from our partner, Mercer) and make sure we have adequate insurances in place.  For many businesses, this means making sure that vehicles and premises are covered and that there is a public/employers’ liability policy in place.  Those businesses may be missing a trick (!).

Employee benefits

By making sure relevant employees are protected by private medical insurance, employers take the next step in minimising surprises.  Who wants Tom, their top performing sales manager, out of action for months?  More importantly, who can afford for that to happen?  With private medical insurance, you can protect your people (and your balance sheet) by helping them to avoid ever-spiralling NHS waiting lists.  What’s more, private medical insurance means that Tom can choose a convenient time for his treatment.  Good news for him: no need to cancel his holiday plans.  Good news for the business: you can rely on him to bring in sales during your busiest period.

Employee benefits for small businesses?

Sounds like an all year round treat?  Maybe not as for some small businesses, their private medical insurance costs, especially renewals, can actually contain a fair few frights.  Research by Mercer reveals that small and medium enterprises face higher premiums for providing private medical insurance in 2011.  On average, premiums for smaller businesses have increased by 10% since 2010 (while large firms have seen an increase of 4.9%).  Donna Biggs, principal at Mercer, says “We push our financial advisers for the best deals in our personal life but SME owners seem to largely forget these lessons when addressing private medical insurance for their staff”.  Maybe there is something we can learn from the ‘trick or treaters’  – if we don’t ask, we don’t get.

Here at Sage we are excited to have teamed up with Mercer, a leading employee benefits consultancy, to level the playing field between larger and smaller employers when it comes to employee benefits, like private medical insurance and income protection.  Check out www.sage.co.uk/employeebenefits for full details.

We look forward to keeping you updated on employee benefits issues but in the meantime, good luck on fright night!  Preparations are in full swing here, time to help Little Bo Peep find her…

Lucy Cook, Small Business Team

MySpace, Bebo, Friendster, Google Wave, Google Buzz, Ping.

All brand names that meant something once, some of which had tens of millions of users in the online social space, all have something else in common; they tried to be David to Facebook’s Goliath and came off worse.

All of them brought something new to the online social space, a different way to interact with other members, a quirky feature or niche focus. All of them also went the way of the Dodo (barring a few clingy tumbleweeds), and most of those features have been aped by Facebook.

The reasons for their failures are varied, but the end result is the same. Facebook continues to dominate our online social interactions, and with the external feed integration changes Facebook announced at F8, it seems they want to become the landing page for your entire internet experience.

There have been contenders who have stuck it out though; Twitter is a great example of a social network which has managed to hold its own. Whether this is because of its success as a high speed news delivery platform, or the inherent simplicity of the user interface, Twitter for now, can stand alone.

Facebook fatigue?

Google + has come at an interesting time, there is research showing that we are experiencing ‘Facebook fatigue’ due to extensive media coverage, data ownership and regular security setting modifications. Facebook’s latest UI revision has also been met with significant criticism, though Facebook has weathered similar storms in the past. This has all come to the fore at the time that Google + has gone from ‘invitation beta’ to public launch.

What Google + has brought is an interesting way to controlling your content distribution and a smart UI, which allows you to very precisely control what is visible to whom when you post content. Another feature is a multi-user video chat function called Hangouts. Google have also cleverly integrated Google + into the menu bar of their main search engine page, thereby exposing it to users on over 90 million searches a day.

Whether neat functionality and high levels of exposure will be enough to keep Google + above water are questions that only time can tell the answer to. Google + has grown very quickly, in fact it is estimated to have over 20 million users already, which far outstrips the performance of any of Google’s previous attempts to enter the social space. The problem is that Facebook at current estimates has 800 million users, 50% of which will check their profile every day.

The new Facebook…

Personally I think Google + has an uphill challenge in front of it; Facebook has already integrated Subscriptions and Lists, which mimic Circles, so the question is does Google have anything else in the toolbox? To me the classic error of any new social media website is to try and ‘be the new Facebook’, not because the site itself might not be up to scratch, but because users are lazy and don’t like change.

Having been using Google + for a couple of months now, I’m still undecided. There are parts I’m really fond of, like the clutter free UI and parts I really dislike, such as the people finder. The latest figures show a thirteen-fold growth in traffic to Google + since their public launch, so there may be hope yet for the network’s survival.

What are your thoughts, does Google have the ammunition to take on Facebook and win, or do you think Google + will follow the footsteps of Wave and Buzz?

Alex Walker, Accountants’ Team

As a copy writer I’m surrounded by words. They are the tools of my trade, the source of my income and I’m lucky enough to enjoy them immensely, especially in their written form.

But where did it all start? As human beings, when did we decide to take the language we’d been using to communicate amongst our tribal groups and write it down?

Watching Stephen Fry’s Planet Word (BBC 2, Sundays 9pm), I discovered that our earliest written ‘documents’ were in fact impressions made in clay tablets. And the subject of these ancient writings? Not faith or power or politics or love. But a matter of accounts.

Some of the first forms of writing constructed from simple pictograms, recorded payments to workers in beer. An early form of payroll records.

Writing soon spread as it became useful and necessary to exchange information about law, messages about battle and so history was made. And trade meant that the written word continued to spread and develop as traders moved good and recorded transactions all over the ancient world, totting up their profits and keeping track of their stock.

Sage hasn’t been around quite so long as that ancient writing. But even in our 30 years we’ve seen a lot of changes to business and communications, from floppy disks to cloud computing. And I’m sure in the next 30 years there will be even more. But even if we’re not ordering Pan-Galactic Gargle Blasters in galactic dollars, next time you tap those transaction details into your mobile phone, remember you’re continuing an ancient tradition of business writing that goes back many thousands of years of human history.

Michelle Nicol, Sage Copywriter

We’re celebrating our 30th birthday this year and you can join in the celebrations too by entering our competition to win an iPad or Kindle.

Humble beginnings

1981. The year Greece entered the EU, the first London marathon was run, the first test tube baby was born and The Police had a hit with Every Little Thing She Does is Magic. But while Sting and pals were storming the charts, something even bigger was about to emerge from the North East of England – Sage.

Three decades on and what began as a brainchild in the backroom of a Newcastle bar, is now an organisation with products and services used by 6.2 million companies worldwide. The name Sage is known in over 100 countries and is a brand which continues to grow day by day, built on talent, hard work and a touch of good luck. Why good luck? Because we were there at the beginning. Although nobody knew it at the time, a computerised revolution was about to take place. Like the Victorian industrialists before us and the nautical explorers before them, we were there at a moment when technological knowhow and mass-market demands were unusually aligned.

Neon eye shadow, big hair and accounts

As the early 1980s progressed, people who’d once known computers to be larger than houses were beginning to appreciate the positive impact these new tools could have on a business. In 1984, Amstrad launched the first desktop PC, paving the way to introduce Sage to ever more customers. The decade passed in a whirl of newly efficient work systems, increasingly accurate accounts, neon eye shadow and big hair. By the time the 1990s dawned business owners knew that computers were here to stay. However, few had foreseen how the internet would totally transform how we process, share and consume information.

The Sage journey has run parallel to the computerised revolution. Like the geeky kid at the back of a physics class, we’ve been paying attention, updating our products and services so our customers can enjoy complete assurance.

Understanding business

Over the last 30 years we’ve dedicated ourselves to understanding the businesses that use our software as thoroughly as possible.  We’ve moved with the times, monitoring customers’ changing requirements and responding accordingly to provide greater efficiency, more control and a software that is simpler to navigate. Your can see this in our software and services like our latest release of Sage 50 Accounts, with its free mobile app or Sage One which offers online accounting to start-ups.

We have a reputation for being an organisation businesses can trust; a name with both the knowledge to solve technical issues and the experience to give valuable business advice. Last year, we conducted 700,000 business conversations with our accounts customers alone.

And it’s not just our customers who appreciate our work.  We’ve were recently shortlisted for the Software Satisfaction Awards 2011, which grades organisations on four key areas: reliability, functionality, value for money and ease of use. In that pub, 30 years ago, as Sting’s voice boomed from the jukebox and the first ambitions for what Sage would become were jotted on a beer mat, those may well have been the exact attributes we’d have wanted to achieve.

Sarah Woods, Small Business Team

Many companies are feeling the strain of current economic conditions. This strain often increases pressure on the “selling part” of a business. Business owners are looking for innovations from the sales team to “find” the revenue. The trouble is enthusiasm for new innovations is often low when working in tough times – it’s just a push to “find the deals”. Planning for and executing best practices or innovations goes by the wayside.

So, articulating the benefits of a proposition is a key skill. It’s not enough to say “here’s a great CRM tool, where can we make it fit?” It is all about proving where software can make a difference – in terms that really matter:

• increasing revenue,
• avoiding costs,
• or improving service

Returns that can be shown to be objective, detailed and quantifiable.

No, more than ever, is the time to be measurable. How do you make sure you think in terms of benefits ?

Where to start? Understand the current processes in a company. How long do typical activities take to complete? How many steps and people are involved? What does that add up to in time (and money)? How can they be improved – looking not just at direct costs but also the risks of lost or incorrect steps along the way. Now think about CRM tools and how they can improve upon the current situation. What is that worth to a buyer – in terms that really matter – Increasing Revenue, Avoiding Costs or Improving Service?

Shape your conversations to those discussions. Talk about the returns, the money saved or the value created. The return that will “keep on giving” each & every day. Show a tangible return on investment, with real savings that can be measured in months, not years. Help the company commit to a well defined project that demonstrates tangible improvements to current processes. And be sure to engage the “selling part” of the business – find a group of salespeople willing to innovate to achieve for themselves and ultimately, their company.

Be prepared to be measured.

This week our ERP, HR and Payroll teams are attending Softworld in London. Softworld brings business software vendors together with businesses looking to choose the right business solution.

Pop by our stand (AF130 and HR330) or if you can’t make it we’re showing our live Twitter coverage here at the Sage Blog:

Ahead of Softworld, guest blogger Fran McKee, Marketing Director of Sage Business Partner Pinnacle, talks about how to successfully implement an ERP solution. Pop by stand AF130, at Softworld and ask Fran about a free business audit.

Leading businesses from across Europe will this week grace the doors of Softworld (18^th & 19^th Oct Excel London) seeking the right ERP solution fit for their unique business. Many operate globally and across multiple sites so naturally prompts the question, what are the critical success factors of selecting and implementing an ERP solution? Enormous benefits can be reaped from a well planned implementation, however even the most successful businesses have suffered massive ramifications from poor ERP implementations.

Finding the right partner

Attending vendor gatherings such as Softworld helps the process right from the start. The search for vendor capability is fundamental to finding the right product, and importantly the partner, that is capable of project delivery and support of the solution. Attention to the quality, capabilities and capacity of the implementation team from the vendor is crucial. Engaging the right consultants, at the right time, coupled with a proper requirement exercise beforehand will assist in getting the implementation right at all stages.

Management support

Getting support from management at the outset ensures the business is committed to best of breed processes that can be realised through the selection and implementation of an ERP solution.  This means investing people and time into process adaptation, data cleansing before transformation into the new ERP solution and sufficient testing before go live. Making sure the project manager within your business is right – communication internally and externally is essential.

Training

Successful implementation of ERP requires an educated and well trained workforce so the users understand the changes in workflow and jobs that the new ERP software and business processes bring.  This is especially important for companies who operate globally and across multiple sites. Continuous roll out of training programmes for existing and new staff reinforces existing processes while also introducing latest software releases and technology changes.

A common understanding

A useful tip is to create a “glossary” of industry specific terminology and processes which are clearly understood by the ERP implementation provider. Misunderstood terminology can lead to significant increases in both implementation costs and time.

Keep the project moving

Ensure key management and staff agree to measurable steps, goals and project milestones with the vendor throughout the implementation process to ensure the project keeps moving. Perhaps hold last payment to the vendor to ensure all their commitments have been met. Be realistic – don’t be tempted to go-live before you are really ready!

Fran McKee, Sage Business Partner Pinnacle

Don’t forget to visit the Sage solutions team and its ERP partner Pinnacle at Stand AF130 Softworld, 18^th and 19^th October Excel London and discover how Sage’s ERP software solutions can support your local and global operations.

University places are tougher to find than ever. On average, four students are vying for each university place in the country.

But that could be good news for you. It means that there are thousands of high-calibre young people who could benefit from an apprenticeship at your company.

Modern apprenticeships are now considered extremely important for many school-leavers’ career paths. Many businesses prefer to see a candidate who has hands-on experience their sector than formal qualifications alone.

And apprenticeships have never offered more to employers than they do now.

The business benefits to you speak for themselves:

• High-quality talent, as university places become fewer and more expensive.
• Lower salary expenditure: apprentice minimum wage is generally £2.50 an hour.
• Fresh and enthusiastic apprentices can improve workplace morale.
• Fill skill gaps, as the Government pay for apprentice training.
• Reduced recruitment costs: training apprentices is often more cost-effective than hiring skilled workers.

What else should I know?

• Apprentices usually work at least 30 hours a week.
• A modern apprenticeship is a tripartite arrangement between the apprentice, the employer and the provider of the off-the-job element of the training (often a local college).
• Your responsibilities would include inducting apprentices, providing on-the-job training and paying wages.
• Apprentices are engaged as employees and work under the terms and conditions of a contract of employment and benefit from the full range of employment rights.
• You can take on as many apprentices as you want.

If you want to know any more about apprentices or any other areas of HR, Employment Law and Health and Safety for your business, then contact our Sage People Advice team on 0845 111 2450.

Matt Forrest, Sage People Advice Team

Ahead of Softworld guest blogger, Rebecca Bradley from Sage Business Partner CPiO, talks about the importance of carrying out regular business audits for the health of your business. And if you’re going to Softworld pop by our stand AF130, say “hi” to Rebecca and sign up for a free business audit.

Don’t wait for an undiagnosed business pain to make changes to the health of the organisation – prevention is better than cure.

Pain drives many strange decisions – especially in business. Whether it is a distribution process in chaos or customers leaving due to poor service, it often takes a serious issue to drive the UK’s businesses to consider new IT solutions. Yet such a reactive approach does not guarantee a solution that will drive the business forward. Just as a headache may mask another, more serious, problem that needs diagnosis and appropriate treatment, papering over the cracks in distribution with a new, standalone warehouse system is unlikely to be the best solution for the business as a whole.

Buying Technology

Why are businesses buying new technology? In a tight economic climate with fierce competition, it is understandable, although not laudable, that most will require a significant prompt. But what is that prompt? A requirement for a new sales ledger? Or the clear business objective to reduce credit control days?

The approach to the purchase will without doubt dictate the benefit that is attained. Those organisations that have a clear view of business issues that need to be addressed through technology are suffering the same pain as the competition but their attitude to solving, or salving, the problem is very different.

Indeed, it is those organisations that regard IT as a solution rather than a series of isolated products that have an edge. They take a proactive approach to achieving incremental business benefits and demonstrate an understanding of the critical value of IT to the business.

Achieving Benefits

Such a proactive approach requires a shift in mindset. Organisations must move from viewing IT as a necessary evil to a tool that underpins every aspect of the business. CPiO regularly works with companies to understand what is driving their business and how important a clear and coherent IT strategy is to achieving strategic goals.

The proactive use of alerts is a prime example of a simple technology that improves efficiency and effectiveness. Rather than relying on a weekly stock report to ascertain order requirements, alerts can automatically inform the business when minimum stock level has been reached. Taking the process to its logical conclusion: that alert could automatically trigger an order with the relevant supplier.  Not only does such a system minimise the chance of out of stocks, hence improving customer service, but it also frees up staff from time-consuming trawls through stock level reports.

The use of alerts is an example that can be applied across the business and provides a clear demonstration of technology’s ability to enhance the human interaction that remains a key element of business success. This proactive management requires a company to regularly review its requirements and evaluate those needs in light of technology. An audit of systems and business processes enables a company to future proof its investment and accessing the skill gaps in the organisation, leading to a more creative use of IT to solve real business objectives  and not just reduce pain.

Interested in a  free business audit? Pop by our stand at Softworld or drop our customer team an email.

Rebecca Bradley, CPiO

Having worked at Sage for over two years now, I’m acutely aware of the importance of culture, and also the physical environment I work in.

Admittedly, in previous roles before I joined Sage, I had an assumption that culture was an abstract ingredient that just existed. If there was any attempt to shape culture, it was usually handed down from senior people in the business, who tended to be very far away from me personally.

Probably not the best conditions to ensure success I’m sure you’ll agree.

An innovative approach to business

Something that is very clear from working at Sage, is that there is a very ‘flat’ structure to our culture. In other words, everyone from the CEO, to executives, to support lines and sales will afford you the time and opportunity to voice your ideas and contribute. The result is that ideas can come from anywhere, and this leads to a truly innovative approach to business, particularly important in a technology company.

Accountability

A culture like this doesn’t happen overnight though. It is bred over time, by empowering people, and giving them accountability. This is the hallmark of a business with a strong culture. However the intangible aspects (behaviours, impulses and decisions) are only part of the story.

A prevalent trend at the moment is to brand office spaces with the desired characteristics for employees to exhibit. This is something we’ve recently undertaken in Sage Accountants’ Division.

Aside from communicating desired behaviours, branding office space can also influence processes and how we communicate. For example, communal areas where people can talk mean that business can be conducted in a calm and relaxed manner. TV screens on each floor allow us to instantly feedback comments from our customers.

Innovative offices

A great example of a branded office space is Google offices, particularly the Googleplex in California. Walls are painted with bright primary colours reflecting the Google logo and fun, vibrant brand. Live searches that are being conducted around the world are beamed straight into the communal areas, highlighting global trends, and informing product development. There’s even a slide and a fireman’s poll! Evidence if any were needed that Google is a fun and innovative place to work. This also reflects a culture of innovation, where developers spend 30% of their time working on anything they like. Complete responsibility and accountability in action, and this results in a constant stream of new products like Gmail, Chrome, Wave and Circles. Granted, not all of them have been a resounding success, but they are prime examples of a brave and innovative approach to business.

Boosting creativity

You might not have Google’s budget but here are a few cheap and cheerful things you could do in your office to boost creativity:

• Always focus on the desired characteristics of the brand – Are you repositioning the brand, or simply maintaining what you already exhibit? This should form the essence of the branding in your office space.
• Involve your employees – There will be certain degree of control needed, but always ensure that you encourage content and ideas from your employees. It’s where they will be working after all.
• Refresh your content – Try and stay on top of refreshing the messaging in your office. Strategic plans have defined stages, so ensure you have the right message at the right time.
• Be brave and innovative – It’s not just customers who like innovation, employees thrive on it too. Try and incorporate original ideas and media into your office. It’ll get high levels of engagement.”

What is clear from all of these activities is that they are the starting point for delivering exceptional customer service. If you focus on and take care of your staff, they will be in the best position possible to offer customers superior service, and also extoll the virtues of the brand.

Having empowered our staff in Accountants’ Division, we’re starting to see results, like winning the Customer Service Training Award this year, and also signing up our 10,000^th Sage Accountants’ Club member, so long may this process continue.

Daniel Duran, Sage Accountants’ Team