Finding the skills to profit
In this age of fierce free-market competition, the idea that directors from rival companies should meet together regularly to advise each other on how to run their firms might sound a little idealistic.
But 500 firms in south-east England are taking advantage of ProfitNet, a successful scheme developed by the university in which directors from companies meet once a month in groups of around a dozen to talk about commercial issues, discuss their business plans and offer each other advice and support.
"They give a presentation on their business plans and where they are going, and the rest of the group questions them and challenges them and gives them feedback and support," said Professor Howard Rush, the head of CENTRIM (Centre for Research in Innovation Management), which developed the scheme. "The others act as a business support network – so all those attending get the equivalent of a non-executive board of directors to help them."
CENTRIM, in collaboration with the university’s Business Services Office, set up the network after 10 years' academic research into the kind of scheme which would best benefit companies. Their work has paid off: a recent survey into ProfitNet's members found that 89 per cent had made improvements to their business as a result of taking part, 82 per cent said they had significantly improved their management skills and 68 per cent said they had improved their business strategy.
The idea has caught on and groups have been organised in Ireland and Durban, South Africa, and the scheme has had interest from Brazil, Chile, Germany, France, Greece and Lithuania. This international interest is impressive given that the scheme only began in 2004.
Member companies include start-up businesses, sole traders and social enterprises such as charities, as well as larger, more-established companies, like firms in construction, manufacturing and creative industries. Because those attending the meetings can bring a variety of skills, the businesses can benefit in many ways, such as improving turnover and profitability, learning to manage the development and introduction of new products and services, developing new marketing strategies and simply giving those with the burden of responsibility a feeling that they are not alone.
"The bonds that have been built between these directors are remarkable," said Professor Rush. "When we first put the idea forward, some people were doubtful that firms that might be business rivals could work together, but the face-to-face meetings have greatly increased the degree of trust and interaction."
For CENTRIM it represents the successful application of its 'closing the loop' philosophy of transferring knowledge from academia to business to benefit both: at each of the monthly workshops two facilitators, trained by the university, attend to ensure its smooth running.
"An integral part of the venture is the ongoing academic research which serves as the R&D arm of the scheme" said Dr George Tsekouras, the Academic Director of the project. "Issues like the dynamics of the firm relationships, the developing linkages of the involved businesses with universities and the impact on their absorptive capacity are investigated by a team of academic researchers with a view of feeding back the results to the operations."
Research papers have been published in several international conferences and journals. The research has been funded by the EU, the HEFCE (Higher Education Funding Council for England) and the South East England Development Agency.
Find out more
Visit the Centre for Research in Innovation Management (CENTRIM) website.
