WHY THE WEST MIDLANDS & OTHER REGIONS NEEDS TO GET ON THEIR BIKES

London Mayor Boris Johnson

I would put the statistical likelihood of a damsel in distress being rescued by a senior West Midlands politician on his bicycle as being about the same as winning £45 million on the Euro Lottery. However, if anyone has other views on this possibility, please feel free to contact me.

The fact is that West Midlands folk like their cars and, as far a I can make out, an executive vehicle automatically confers executive status no matter how lacklustre the individual in question : so whist I’ve encountered few cycling politicians hereabouts, I’ve encountered plenty of lacklustre ones.

The result, unsurprisingly, is a lacklustre region as demonstrated by a recent report for the West Midlands Regional Assembly and Advantage West Midlands (AWM) on the problems of the region’s economy, which boasts the highest unemployment levels in the country. Could the Longbridge debacle have happened any where else I wonder ?

When I suggested to a local politician that his council officers would do well to get on their bikes to arrive at a realistic view of the amount of empty property, derelict sites and, indeed, unutilised planning consents assigned for so-called employment land in their area, I could tell that this didn’t go down well.

I might have added, of course, that some of his colleagues would be doing the region a favour if they followed Norman Tebbit’s advice, and got on their bikes in search of alternative employment. I mention “Stormin” Norman because my reference is to Conservative-controlled local authorities, or the Regressive (some might say “Retarded”) Right.

For “regressive” – even “retarded” – is precisely the description I would give to much economic development and planning policy for the West Midlands Region. In short, I would suggest that the region is 25 years behind London in implementing transport policies to support sustainable regeneration in the Major Urban Areas (MUAs)

Moreover, I seriously question whether most senior decision-makers, whether in the private or public sectors, ever use public transport, let alone their bicycles. Indeed my overwhelming impression is of a region of car-driving executives semi-detached from the real world.

A case in point concerns the release of additional land for employment outside the MUAs as part the Revision of the West Midlands Regional Spatial Strategy process. This process, incidentally, has created unprecedented levels of speculative land-banking in the region, which have only been dampened by the present “Great Recession”.

Now when I worked in the corporate property business during the late 1980s and early 1990s, it was widely accepted that those companies who had embarked upon ambitions development schemes, for new headquarter buildings and the like, were amongst the most likely to hit trouble.

In the West Midlands, this lesson was borne out again only yesterday, when Swedish company Eriksson announced the loss of some 700 hundred jobs from its glossy new offices just outside Coventry, which had been developed with the support of AWM, and were used by them as an argument for additional employment land designation in the region during the WMRSS Phase 2 Revision Examination in Public earlier this year.

Even more annoying, this kind of regional policy is dressed up as sustainable ! So I was relieved yesterday to encounter a plain-spoken and un-reconstructed motorist from “The North” as a consequence of separate diversions to our mutual journeys :  his to avoid a traffic jam on the M5, and mine to avoid mud and pot-holes on a country lane.

Frankly, this experience was even better than being rescued by Boris Johnson, for I was able to regale said individual on the opportunities for demand management, whether with regard to roadspace, energy use or land banking, as well as  the economic competitiveness, not to say social and environmental, benefits thereof, as Londoners have long known !

Collapse in Value of Quango Land Bank

The following article is taken from “Inside Housing” (25.9.2009).

“The 2008/09 accounts for English Partnerships – quietly posted in July on a website that has supposedly been defunct since December – reveal the financial devastation visited on the agency in its last eight months of existence, as it posted an operating loss of £492.2 million. It was so badly hit by the house market collapse it had to seek an extra £67 million of funding from the Communities and Local Government department to continue trading.

Its two divisions – the Commission for the New Towns and the Urban Regeneration Agency – were both absorbed by the Homes and Communities Agency in December. Each organisation prepared separate accounts.

The URA, the main land holding division, was particularly badly hit by the housing market downturn.

It was forced to wipe £263.7 million from the value of its land. Its operating deficit more than doubled from £200 million in 2008 to £406 million in 2009. The agency always ran at a deficit because of the way it was funded.

The Commission for New Towns made a £56 million write-down. It lost £12.6 million in a land deal after a developer which owed it £15 million became insolvent. It got the land back but its value had dropped to £2.3 million.

Overall, the value of the URA’s £719 million land bank in 2008 was slashed by a third over the eight months from 1 April to 30 November, leaving it £481 million of land assets to transfer to the HCA on 1 December 2008.

Communities secretary John Denham will face a barrage of questions over the revelations.

Conservative shadow housing minister Grant Shapps, said: ‘When Parliament returns I will be lining up a series of questions for the secretary of state to uncover the truth behind what looks like a very murky situation. When you find out these things months after the event it becomes difficult to hold the quango to account. Why weren’t we told about this at the time?’

The accounts raised a ‘host of questions’ about how EP assets were transferred to the HCA, he added. ‘I was critical of setting up a mega-quango because it is very difficult to track what is going on.’

An HCA spokesperson said the housing market downturn had left EP with ‘a deficit between anticipated receipts and spending commitments’.

‘This was constantly monitored by EP and the CLG,’ he added. ‘To ensure EP did not breach its allocated budget, additional capital budget cover was requested.’

The extra £67 million of funding was approved at the end of last year. The spokesperson said EP had ‘short-term budget issues’ which the HCA had inherited. ‘Short-term operating budget pressures are not the same as technical insolvency. EP passed £1.8 billion of assets to the HCA on 1 December so was clearly not insolvent.’ A link to EPs’ accounts was posted on the HCA’s website.

A history of EP

• 1961 Commission for the New Towns created
• 1993 The Urban Regeneration Agency established
• May 1999 English Partnerships set up to run the agency and commission
• November 2008 Both organisations cease trading
• December 2008 Homes and Communities Agency launched”

A New Midland Bank ?

en.wikipedia.org/wiki/Midland_Bank

 

The subject of regional banking is of considerable interest just now, and I wonder whether a New Midland Bank (see above) might be the best way forward for Central England, as part of the re-organisation of the regions proposed by the Conservative Party (see below).

East Midlands MP, current Shadow Business Secretary and former Chancellor of the Exchequer Ken Clarke might be a good person to progress such a venture, which would, of course, need to be headquartered in Birmingham.

The “Outsider” Sometimes Wins

Today’s Aintree Grand National win for race horse Mon Mome – ridden by Liam Treadwell and trained by Venetia Williams – at odds of 100-1 should be a reminder to us all that the “outsider” sometimes wins the big prize, not only against the odds, but well ahead of the race.

Congratulations to the team behind today’s outsider win….and a “Harvey Smith” to any sulky punters who failed to cheer !

An Olympic-sized Saving : End of the Road for Thames Gateway Bridge

Transport for London scraps plans for six-lane road bridge

London Mayor Boris Johnson scraps scheme amid strong opposition from environmental campaigners

• John Vidal and Dan Milmo
• From The Guardian, Thursday November 6 2008 11.48 GMT

One proposed design for the six-lane east London crossing

Boris Johnson, the London mayor, has shelved £3.5bn of transport schemes in the capital, including the Thames Gateway bridge, as part of multibillion-pound cost cuts.

Johnson said today the move ended the “deception” of his predecessor, Ken Livingstone, who had ordered officials to draw up plans for the Thames Gateway project amid strong opposition from environmental campaigners.

“I am stopping the deception of keeping hopes alive when there is no funding for these schemes,” said Johnson….

What did the Scottish Bankers say to the English Banker ?

Ex-bank chiefs in resignations call

Two former bank chiefs have sent a letter to HBOS calling for its chairman and chief executive to resign. Sir Peter Burt and Sir George Mathewson, former chief executives of the Bank of Scotland and Royal Bank of Scotland respectively, oppose the takeover of HBOS by Lloyds TSB.

Sir George said they had sent the letter to chairman of HBOS, Sir Dennis Stevenson.

In it they say that Sir Dennis and HBOS chief executive Andy Hornby should resign – and that Sir George should become the new chairman of the bank and Sir Peter Burt should be its chief executive.

Speaking from his Perthshire home Sir George said: “It is a lengthy, detailed letter. We do not believe the alternatives to the Lloyds takeover of HBOS have been properly explored.

“And, that this deal was conceived in response to a particular problem and then the world changed a week later. As such that deal is no longer the proper deal for the shareholders of HBOS or anybody else.”

HBOS is the subject of a £12 billion merger with Lloyds TSB.

Lloyds TSB has said that its acquisition of HBOS would save it at least £1.5 billion a year.

But the SNP has been critical of the takeover and believe many Scottish jobs could be lost.

The former bankers want to keep HBOS an “independent bank” and believe that the merger was no longer required after the Government’s bank bailout.

Two former bank chiefs have sent a letter to HBOS calling for its chairman and chief executive to resign.

Sir Peter Burt and Sir George Mathewson, former chief executives of the Bank of Scotland and Royal Bank of Scotland respectively, oppose the takeover of HBOS by Lloyds TSB.

Sir George said they had sent the letter to chairman of HBOS, Sir Dennis Stevenson.

In it they say that Sir Dennis and HBOS chief executive Andy Hornby should resign – and that Sir George should become the new chairman of the bank and Sir Peter Burt should be its chief executive.

Speaking from his Perthshire home Sir George said: “It is a lengthy, detailed letter. We do not believe the alternatives to the Lloyds takeover of HBOS have been properly explored.

“And, that this deal was conceived in response to a particular problem and then the world changed a week later. As such that deal is no longer the proper deal for the shareholders of HBOS or anybody else.”

HBOS is the subject of a £12 billion merger with Lloyds TSB.

Lloyds TSB has said that its acquisition of HBOS would save it at least £1.5 billion a year.

But the SNP has been critical of the takeover and believe many Scottish jobs could be lost.

The former bankers want to keep HBOS an “independent bank” and believe that the merger was no longer required after the Government’s bank bailout…..

© 2008 The Press Association Limited

Appropriate “Horse” Management Works

Several years ago, a horsewoman (and qualified vet, although she no longer practiced) mentioned a so-called animal communicator and healer, called Margrit Coates. Although we shared important common interests, I found the former veterinary lady difficult to get along with, and she probably felt similarly disposed to me. However, I’m very grateful for the information she provided.

So with the Margrit Coates book, Connecting with Horses (Rider 2008), I agree with much of this, but somehow find it difficult to connect with (particularly all the therapy-speak !) Nevertheless, I would still recommend the book to fellow equestrians, not least because it points out that so-called “natural horsemanship” techniques can be just as detrimental – without the right experience, temperament and character in the human trainer – as conventional schooling methods in the wrong hands.

However, it is the following extract (ammended slightly by me) from the Margrit Coates book (from the final section entitled “Hands and Hooves in Partnership”) that I really did connect with :

“Brothers Om and Jai share a struggle for survival with Raju, the mule who earns a living for their family in India. Several years ago the brothers’ father died and left behind a sick wife, seven children and the mule. At the time, Om and Jai were around seven and five years old, and their mother had no option other than to send her sons to work, and their only hope was Raju. They started working in a brick kiln and Raju worked as a family member, co-operating in their need as a true and faithful friend.

The Brooke (http://www.thebrooke.org) mobile veterinary team and community animal health workers were working in the area, and 4 years ago Dr Shabir, the vet in charge, came in to contact with the brothers and their mule. He noticed these 2 boys as very polite and sensitive owners, always keen to know about the Brooke’s treatments and welfare messages. According to Dr Shabir, “Raju is about 15 years old now and his condition is good – he is fit for work. I wonder how these small boys keep their animal in good health in such adverse circumstances”….

…”Both brothers are so caring about their animal that they immediately take Raju to the Brooke team whenever any problem arises. Jai said, “How could we neglect Raju ? He is our only hope in the absence of our father. He gives us support to live and feeds us. Without his help we could not find a way out of our crisis period”. Dr Shabir reports, “I am thankful to these young innocent children that I have never needed to attend an emergency for Raju because they give priority to prevention of problems”…

A hardworking family indeed !  Please also see my Horse Work Blog @ http://horsework.wordpress.com

Know the Difference between Objectivity (or, indeed, Reality) and Aspiration

Another post from late 2006 (see also http://janetmackinnon.blogspot.com)

Know the Difference between Objectivity and Aspiration

I often wonder why organisations and individuals willingly submit themselves to being mercilessly ripped off. My guess is that their abililty to distinguish objectivity and aspiration is temporarily, and in some cases permanently, suspended. The phrase “willing suspension of disbelief” comes to mind.

 To explore my theory, I’m going to use two “case studies” : the Private Finance Initiative (PFI); and horse purchase.

The word “aspirational” first properly entered my psyche when I had an unplanned meeting with a senior army officer – unplanned because he’d planned to be elsewhere but bad weather prevented this – regarding a project in which the army took an interest. This gentleman’s use of the word “aspirational” had a particular resonance for me on two counts. Firstly, it was clear that aspiration was a core value for him, personally and professionally, and, secondly, I intimated that my own proposals (and person !) might be insufficiently aspirational.

A few years passed and I had occasion to “revisit” the same army establishment, which in the meantime had recieved substantial investment under a PFI scheme. In my opinion, this scheme had all the hallmarks of a typical PFI project. There had indeed been substantial capital investment ie new construction. However, this had brought with it new and equally substantial operating costs. Various new initiatives were now being contemplated to cover these costs, and additional funds sought for further capital works.

This kind of situation is familiar to (?) the majority of local health trusts who have embarked upon major new hospital (re)construction using the PFI in recent years. The Worcestershire Royal Hospital, a new facility on the outskirts of the city of Worcester, is a classic example of what can go wrong.

PFI is now widely regarded as a “bad deal” for the public sector, and particularly for the National Health Service. It was conceived under the previous Conservative administration to “get around” public spending constraints. However, under New Labour it has been a key component of “the building boom” on which the wider ecomony is now so dependent. We have a construction industry which is hungry for more PFI projects, regardless of whether these are in the best interests of potential “clients” for such projects, or the general tax payer.

Yet PFI has fulfilled the aspirations of the public sector for new infrastructure, and the new hospitals, schools etc that have sprung up, notwithstanding their frequently poor design (for purpose), are hailed as one of the great successes of aspirational New Labour.

The zeitgeist of the present time is aspirational, and there is a Mephistopheles around every corner, or so it seems, with whom to enter into a Faustian pact.

Horse purchase is another case in point. There is nothing new in the tendency for new (or newer) comers to horse purchase to acquire animals which are too energetic and/or big for them, and to find that the ongoing resources (time, money etc) required to maintain a horse are more burdensome than the capital outlay. The horse world, like that of PFI, also has a plentiful supply of professionals to complicate matters, and – although some do provide a genuine good service – many “trade” on the aspirations of their clients, sometimes with serious consequences.

So my message to potential horsebuyers and procurers of other major capital projects is know the difference between objectivity (including objectives) and aspirations, it may save you alot of money (and possibly your life). Also know that – as someone once said – “there are as many certified charlatans as uncertified ones” out there to part fools from their money.

Common Sense Consulting

Some thoughts on Business, Management and Consulting from a couple of years ago. The highlighted section of the final paragraph is particularly relevant to the present time !

Common Sense Consulting (December 2006)I am neither particularly accommodating nor tolerant of other people. Therefore it always comes as something of a surprise to me to say that I have never worked with anyone whom I would regard as stupid. Indeed, I have often stood up for people whom others have regarded as incompetent because I knew that with the right supervision – and sometimes training – these individuals could perform well (and often as well if not better than the people who were regarded as good at their jobs). Equally surprising to me is the constant whinging from employers about the problems of younger (and older) ,workers and the lack of people available to do particular jobs, whether skilled or unskilled, amongst UK nationals. As something of a networker (a highly skilled one in fact) I know there are plenty of people around for all manner of work, provided you aren’t prejudiced against, for example, people with too few or to many qualifications, and with too little or too much experience, or those who “don’t seem to fit” a particular context : something which seems to be more important these days for some reason.

In my professional and working life, I tend to view people objectively. Everyone has their strong and weak points. Equally, people whom I would not seek out as friends make perfectly good work colleagues (and vice versa). This is not to say that I do not have good friends amongst people with whom I also have professional relationships, but one type of relationship need not assume another. In fact, some of my most enduring and successful business relationships are with people I know little of personally. Friendship is inevitably subjective and, lets face it, friends often fall out over subjective things. The good thing about professional and working relationships is that they generally occur within an enterprise (whether commercial, social or some combination of the two) which gives them some objective structure and, indeed, objectives.

As mentioned earlier, I have noticed a growing pre-occupation amongst employers, and also workers, with recruiting people who “fit in” with them. This may have something to do with the New Labour administration which has “cascaded down” into the wider community. The need for people to “fit in” has certainly, from my perspective, gained momentum in recent years, and, I would argue, is a often a more important requirement – for consultants as well as employees – than hard skills and experience. At the higher level of decision-making, I will call it, this “fitting-in” often accompanies a certain requirement for “group think” when major investments with an equally major public interest dimension, for instance, are being embarked upon. On the office or shop floor, “fitting in” often has more to do with shared life circumstances and/or outlook. On balance, there is a strong presumption in favour of family-orientated people (even amongst the young and “gay”) of conventional values – which may be one reasons why Polish workers are so well regarded – who attach considerable importance, consciously or unconsciously, to group “equilibrium”.

Is this all a good thing ? Not from my perspective, professionally and, for that matter, personally. One of the most worrying trends I have observed is what could be described as “a requirement for the willing suspension of common sense”, or put another way, organisations of all types increasingly require a certain aptitude for stupidity. Let me provide an example. Someone recently described to me the “brainwashing” (their words) process which recruits to the call centre operations of a highly reputable company in this country are required to undergo. As it happened, I knew a young man with joint United Kingdom-United States citizenship who had recently been recruited to the organisation in question. A lovely – and by no means stupid – chap, he could perfectly fulfil the requirement for common sense suspension. It came as no surprise to me therefore, that recent callers to a radio phone-in about call centres should complain, almost unanimously, about the “stupidity” of the call handlers at these centres. Personally, I don’t use them !

The woman – a very sharp lady in fact – who described the “brain washing” of call centre recruits had, as it happened, just recruited the young man mentioned to the centre described above. Like many people, she possesses a strong aptitude for Orwellian “doublethink” which forms an increasingly important part of the personal and professional tool-set for “getting on” these days. By “doublethink”, I mean a recognition that something may be, for wont of a more elegant expression on my part, “a load of old cobblers” but you buy into this nevertheless, particularly if doing so means alot of money could be coming your way, either organisationally, personally or both. Indeed, it is almost certainly the case that the greatest instances of both doublethink and the willing suspension of common sense occur at the higher levels of organisations, decision-making and salary scale (not to say bonuses) which is rather worrying, I feel, both professionally and personally. For herein lies the two of the main conditions for great disasters amongst private sector corporations and public institutions.

Therefore, I’m sticking with common sense consulting, even if some clients won’t buy it !