Almost 80% of UK companies report difficulty filling jobs according to analysis by the Manpower Group.

So is using AI (Artificial Intelligence) the answer to the skills shortage?

In some instances it may be.

Examples include automating CRM (Customer Relationship Management) systems, machine learning for data processing, and in cybersecurity in defending computer defences. AI is key to automating various routine processes in manufacturing.

Most of the above will be familiar to businesses and have already proven their worth but there is a new and much-hyped piece of AI which has been the focus of attention, and that is ChatGPT.

ChatGPT is an AI chatbot system released by OpenAI that answers any questions and can even compose poems.

It has been argued that it useful for generating creative ideas, providing summaries and writing first drafts. It can also produce large amounts of text with a quick response time, So, It can arguably automate routine tasks, provide personalised customer...

BCC’s most recent update on the difficulties to find workers highlights shortages in several key areas.

The February 2023 update said:

“Attempted recruitment in Q4 remained virtually unchanged from the previous quarter, with 61% of firms looking to find staff (62% in Q3 2022).

“Overall, over eight in ten firms (82%) attempting to recruit reported recruitment difficulties, up from 76% in Q3.

“While the problem is persistent across all sectors, firms in the hospitality sector are most likely to face challenges when recruiting, with 87% reporting difficulties. This is closely followed by the manufacturing sector on 85%, and the construction sector; professional services; and public, education, health sector all on 83%.”

According to research from fintech provider Nucleus Commercial Finance 68% of SMES with up to 150 employees are concerned about staffing in 2023.

So what can SMEs that are already strapped for cash do to help themselves in the short and...

The Government’s furlough scheme to help employers through the pandemic is being scaled back, with wage support being reduced from 70% to 60% and employers’ contribution increased to 20% this month.

The whole scheme will end on September 30.

One survey carried out this week has found that an estimated 350,000-plus SMEs cannot now repay Covid loans due to the impact of cash flow and supply chains.

An estimated 18% of the survey participants reported that they intended to make redundancies while around 16% said they could not afford to pay existing staff because of the pressure of repaying Covid-related loans.

At the same time, it has been widely reported that businesses have been facing difficulties in recruiting staff in some sectors.

So what should businesses do?

Try to hang on to staff in the hope that business will pick up?

Make some redundancies now to improve their cash flow and hope to rehire staff in better times?

How you treat your staff will affect your...

Business triage refers to the process of prioritising work in a crisis when there is more work to do than resources available to do it. The aim of triage is to maximise the outcome and minimise the damage by being realistic about what can be achieved with limited resources.

It is more commonly understood in the medical context, usually in response to prioritising treatment of casualties following disasters or other emergencies.

According to Investopedia, in a business context, “Triage helps companies by enabling them to attend to emergencies quickly, but it also poses risks, as it tends to involve the elimination of certain time-consuming steps that are normally part of the workflow”.

While business triage is normally associated with decision-making and action a crisis, its principles can also be applied to all forms of transformational change.

In my last blog I advised directors that now is a good time to conduct a strategic review of businesses in order to prepare for...

When working life resumes properly once Coronavirus restrictions have eased people may find that their work patterns are substantially different from previously.

While, sadly, some SMEs will not have survived others may find that their agility and perhaps new innovations introduced during lockdown will have given their businesses a new lease of life for the future.

Those who have shown consideration for their employees, suppliers and customers will have built up a level of goodwill that will stand them in good stead for the future.

I shall examine in another blog those businesses, sectors and processes that may benefit from the changed landscape but in this blog I am focusing on the likely changes to business work patterns and the relationships between employers and their stakeholders.

Because, of course, employers are also people, they will have discovered that they and their families are no more immune to the health risks of the pandemic than any of their employees.

This may well...

How people’s behaviour might change post lockdown is something that may be crucial for SMEs in planning ahead.

While it may be a long time yet before the Covid-19 lockdown is removed completely, following the Prime Minister’s briefing at the weekend, the process of relaxing the lockdown restrictions is now underway.

Despite the financial support that has been provided to businesses and workers it is becoming clear that we shall not return swiftly to a pre coronavirus level of business for some time and before we do many businesses will not survive, especially if the recovery takes a long time and the post lockdown landscape is substantially different.

Much depends on businesses’ ability to recover, on how long it will take them to recover and on how much people will change their behaviour as a result of the crisis.

A key to business survival is communication by leaders to deliver the information and direction everyone needs when a large scale crisis hits....

Just in time (JIT) business systems of supply for everything from supermarket stocks to manufacturing components and raw materials have been the dominant model for some years.

While it offers huge benefits, including less storage space needed and less capital tied up in stocks, the disruption caused by measures to contain the coronavirus pandemic has revealed some major flaws in the model.

When such an integrated global supply chain breaks down as has happened recently the impact on business is considerable where shortages of stock have arisen due to road, sea and air freight grinding to a near-halt.

Indeed, JIT relies on many different components arriving on time often from myriad sources such that any one item can bring all production to a halt. The current situation has magnified the vulnerability since all the different supply chains will need to be fixed before production can resume..

Systems resilience describes a system’s ability to operate during a major disruption or...

Robust business models should be based on a clear proposition with a plan for profitable activity.

Each model is essentially a road map of how money will flow from activity.

Business models are a financial expression of the company’s business plan in a way that summarises the strategy, funding, organisation and processes used to achieve objectives.

Given that unforeseen roadblocks and successes will occur, business models should be reviewed regularly and adapted depending on new circumstances and new information.

Tools for refining the model are also useful, such as a SWOT analysis to identify Strengths, and Opportunities to be exploited and Threats and Weaknesses to be avoided.

While arguably, few businesses and especially SMEs, will have had plans to cope with the coronavirus pandemic, it has affected most businesses in ways that were not foreseen. The lockdown has also exposed how little resilience they may have built into their business models to protect from such a...

Arguably, all successful businesses need to exercise agility in a fast-changing world, but never more so than now in the midst of the Coronavirus pandemic.

While there is nothing wrong with having pride in your business, pride is also associated with sticking doggedly to a plan that is not working due to a change of circumstances. Just because you have always done things one way doesn’t mean that way is always right in normal circumstances, let alone in abnormal ones like the current situation. In a crisis everything you do should be challenged and often fundamental change is necessary if a business is to survive.

Business agility is therefore a key attribute for dealing with adverse circumstances, to be creative and adapt to the changing environment. This in particular applies to three main areas: staff, customers and processes.

Social distancing has meant that for some businesses their staff have had to work remotely while others are needed in the office to maintain systems....

In the current pandemic situation, many businesses deemed non-essential have been forced to temporarily close for a lockdown period and it is clear that many SMEs will have serious cash flow problems when they resume trading.

Unfortunately, the cash flow problem won’t go away even though for the moment it is easy to ignore it by holing up at home.

While it is true to say that all businesses should have plans for dealing with emergencies and reserves for cash flow problems, it is unprecedented to have to deal with a period of no income and it is becoming clear that many SMEs – and larger businesses – do not have sufficient cash reserves to survive a lengthy lockdown.

Many are telling me that they paid their staff wages for the first month in anticipation of furlough support arriving in time to fund a second month but they are concerned about the Government’s promised CJRS (Coronavirus Job Retention Scheme) arriving in time to pay April wages. As for paying...