THINKING AHEAD COULD MAKE ALL THE DIFFERENCE

Businesses in the Eastern Region must develop a clearer understanding of future risks and opportunities to succeed in both the recession and post-recession economy is one of the key findings in a major ‘Forward Thinking’ research report released by Barclays Commercial Bank and the Institute of Directors.

The report, which is the first of its kind, examines how businesses in the UK understand and plan for the future. It was prepared after surveying 600 business owners and senior managers about their company’s ability to understand the future external environment in which they will operate.

According to the research, 29 per cent of businesses in the East report that at present they do not analyse the future external environment at all, while 22 per cent of directors said they have lost potential revenue and profit due to a lack of analysis around future operating environments. Nationally, the figure stands at 25 per cent of businesses not presently analysing the future external environment, the equivalent of 500,000 enterprises.

Of the 71 per cent of companies in the East of the UK that perform forward thinking, only 53 per cent think they do it well, while the remainder said they only do an adequate job. However, there is a clear impetus to improve on this, as 44 per cent of business leaders said their shareholders are lobbying for more analysis and demonstration of their forward planning.

Based on these and other findings, the Forward Thinking Report offers extensive recommendations on how companies of any size can effectively implement forward thinking into their planning process.

The national research results also show that public sector organisations are some of the most committed to forward thinking (94 per cent analyse the future and 61 per cent think they do it well). Retail and wholesale companies are less likely to analyse the future external environment, with 43 per cent saying they do not currently do this. Surprisingly, technology, media and telecoms companies are also amongst the least prepared for changes in the future environment.

Perceptions that UK culture lacks a forward thinking attitude persist when held up against other countries. The United States and Germany are seen as strong forward thinkers by the business leaders questioned in the East, while only a quarter (26 per cent) of those surveyed think that the UK has the right culture to encourage forward thinking, a figure that nationally stands at 36 per cent.

Locally, we continue to support our customers to plan for the future.

To read the Forward Thinking Report visit: www.business.barclays.co.uk/bb/forwardthinking

Barclays is a major global financial services provider engaged in retail and commercial banking, credit cards, investment banking, wealth management and investment management services with an extensive international presence in Europe, the USA, Africa and Asia.

Barclays Commercial Bank provides banking services to 81,000 organisations with an annual turnover of more than £1m. Customers are served via a network of relationship and industry sector specialists, which provides solutions constructed from a comprehensive suite of banking products, support, expertise and services, including specialist asset financing and leasing facilities. Customers are also offered access to the products and expertise of other businesses in the Barclays Group, particularly Barclays Capital, Barclaycard and Barclays Wealth.

To contact Tim Seeley, Head of Barclays Commercial Bank, Norfolk and Head of National Agriculture, telephone: 07775 545 914 or email: tim.r.seeley@barclayscorporate.com