Time for reflection on that Emma Harrison interview. The Daily Mail gave her the chance to tell her side of the story, ironically. I know from the stats for this blog that it was the Mail's monstering of her that did most of the damage. So let's look at what's being said.
It's impossible for us to know whether Harrison herself was the business brain behind securing all those contracts and connecting with the right people. Clearly she saw herself as a charismatic leader, the company figure-head. She encouraged the culture of the business, driven by targets and rewards. Was she surprised when some employees cut corners? What emerges from the interview is a lack of understanding about real business. Outsourcing is very different from the sort of entrepreneurship she sees as her expertise. She says: "People say it’s taxpayers’ money, but it is profit honestly earned over many years on orders that were placed with our company. I've been investing in this business, taking massive personal risks, for years. This was not a dividend of one year, it was a result of 25 years of work. I agree it’s a fantastic amount of money but I have tens of millions of pounds invested in A4e, some of it supported by personal mortgages. I'm not a gambler, I was very exposed. Any entrepreneur will understand this. I'm the majority shareholder in A4e. I'm taking all the risk."
Take that first highlighted phrase. An outsourcing contract is nothing like an order placed with a company. If I make widgets or run an accountancy practice I only get paid if I do the work I've agreed to do. If I mess up an order or an account I won't get another one. My business depends on delivering what I said I would deliver, and being better than my competitors. That is far from how outsourcing works. A4e, like the others, has consistently failed to deliver, as its business grew.
As for "massive personal risks"; I can't see it. A genuine entrepreneur would take that apart.
The real problem for Harrison was hubris. She believed her own PR. She has never publicly debated with the critics of her company and herself. Until she does that she will not be credible.
"The most critical signs for a toxic brand are:
ReplyDeletea) Bad or missing leadership;
b) No vision for innovating products;
c) Missing or irrelevant strategy;
d) a) to c) leads easily to not-satisfied customers (part 1)
e) Not aligned execution (processes, systems, controls) to strategy;
f) Bad culture or not lived company values, not satisfied employees
g) e) to d) makes employees not satisfied (part 2)
There is only one medicine: Business owners need to change the current company top management (not just the brand management only)"
"An outsourcing contract is nothing like an order placed with a company. If I make widgets or run an accountancy practice I only get paid if I do the work I've agreed to do. If I mess up an order or an account I won't get another one. My business depends on delivering what I said I would deliver, and being better than my competitors. That is far from how outsourcing works. A4e, like the others, has consistently failed to deliver, as its business grew."
ReplyDeleteAnd this is the crux of the problem. A4e and its W2W brethren do not make or offer anything of real worth. They do not manufacture anything, nor do they offer a vital service. Their (poor) performance is never scrutinised and used as a benchmark to see how well they're performing.
Suppose I as a client of A4e think they're rubbish, complete garbage. Can I turn to a JC+ Advisor and say I'd like to move to another provider or better still find another more helpful method of securing employment? I think we all know the answer to that one!
In contrast, suppose I have a low opinion of Tesco. I can just as easily choose to use one of Tesco's rivals such as Morrison, Asda or Lidl. Or I can bypass supermarkets altogether and use my local market, butcher, baker and corner shops.
Within the W2W sector, there appears to be little genuine competition or choice at the service delivery end.
As for Ms Harrison, she is what can be called a 'Media Tart'. Someone who believes their own hype and who revels in the media spotlight. Until a few months ago you could not keep her of the TV. The BBC and CH4 seemed to love her. Right now she is damaged goods. However, one cannot help but get the feeling that the DM interview is the first attempt at rebuilding her tarnished image.
Hi iMatt,
DeleteWell said
I find it hard to reconcile the near juxtaposed quotes:
ReplyDelete1."I'm not a gambler"
2."I was very exposed"
and
3."I'm taking all the risk".
What is someone who is not a gambler doing being "very exposed" and "taking all the risk"? Just gibberish uttered by an incomprehensible media tart.
Now I think we can agree that the a4greed is brand is toxic. Anyone want to buy a toxic brand? The competition (Ingeus et al) may be interested at a knock down price but this would surely be vetoed by the DWP since it would remove even the semblance of competition that exists now. Anyone not in the work to welfare industry see this as a way in? Well launching into a seemingly doomed programme by buying a toxic brand would take a lot of cahones!
Notice no comments are allowed on the Daily Mail article.
ReplyDelete"Sorry we are unable to accept comments for legal reasons".
My guess would be its been published under legal threat and it's a 'right of reply' given to her as a way to defuse it.
I did point that out. But I think the reason is that the comments would be overwhelmingly negative and Harrison agreed to publication only if there were no comments.
DeleteIn the DM interview, Emma Harrison was extremely vague about what she wants to do with herself now that she no longer has (we hope) any involvement with A4E. Mrs Harrison said vaguely that she wishes to get involved with, "promoting women in business."
ReplyDeleteHow? Her only expertise and experience as a woman in business is that she managed to make a monumental cock-up of it, running too many projects at the same time, unable to manage them adequately, unaware that she was committing the cardinal business sin of overtrading and, it would seem, confusing "business" with "personal celebrity."
Who on earth wants "advice" from a public pariah about how to do any of that?
Nobody doubts Emma Harrison's personal integrity but everyone doubts her competence, it seems to me.