Business Acceleration for SMEs (BASME): an end of project evaluation for NEPIC

David Brown, July 2016

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This report was commissioned by NEPIC on terms specifically limiting IChemE Ltds liability. Our conclusions are the results of our professional judgement, based in part on information provided to us by NEPIC and others. Use of this report by any third party for whatever purpose should not, and does not, absolve such third party from using due diligence in verifying the reports contents.

Any use which a third party makes of this document, or any reliance on it, or decisions to be made based on it, are the responsibility of such third party. IChemE Ltd accepts no duty of care or liability of any kind whatsoever to any such third party, and no responsibility for damages, if any, suffered by any third party as a result of decisions made, or not made, or actions taken, or not taken, based on this document.

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Contents

1 Introduction................................................................................................................................4

2 Background,structureandrationalefortheproject..................................................................4

3 Theevolvingstructureandfocusoftheproject.........................................................................5

4 Deliveryteamandmentors........................................................................................................7

5 Deliveringlearningandvaluetocompanies.............................................................................10

6 Skills...........................................................................................................................................13

7 Targets&metrics......................................................................................................................16

8 TheBASMElegacy.....................................................................................................................18

9 Conclusions...............................................................................................................................20

10 Summaryofrecommendations............................................................................................21

Appendix:Surveyresponses.............................................................................................................24

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BusinessAccelerationforSMEs(BASME):ashortmidtermreviewforNEPIC

1 Introduction

1.1. Thisreportpresentsanendofprojectevaluationofthe1.5mRegionalGrowthFundprojectNEPICSMEbusinessaccelerationthroughmentoredbusinessdevelopmentintheprocessindustrysector,towhichwewillreferasBASME.

1.2. TheevaluationwasconductedduringJuneandJuly2016byDrDavidBrownofIChemELtd.IChemELtdisacompanyoftheInstitutionofChemicalEngineers(IChemE),theinternationalprofessionalmembershipandqualifyingbodyforchemical,biochemicalandprocessengineersmanyofwhomworkinorwithprocessindustrycompaniesintheNorthEastandelsewhere.TheevaluationfollowedasimilarmethodologytoanearliermidtermreviewconductedduringJanuaryandFebruary2014.Intheinterestsofunderstandinghowtheprojecthasevolved,thisreportfollowsasimilarstructuretoits2014predecessor.

1.3. Ourevaluationinvolveddistributionofquestionnairestomentorsandtobeneficiarycompanies,interviewswithprojectteammembers,individualmentorsandrepresentativesofSMEs,andgroupdiscussions(bothaspartofaNEPICSMEThrustteammeetingandseparatelywithaselectionofmentors).Wealsorevieweddocumentation,includingitemssampledfromtheelectronicorpaperrecordsconcerningsome20beneficiarycompanies,summarysheetsandprojectreports.Theauthorisgratefulforthegenerousandwillingcooperationofinterviewees,NEPICstaff,meetingparticipantsandsurveyrespondents.

1.4. 59companiesrespondedtothebeneficiaryquestionnaire,comparedto76forthemidtermreview,andtherewere32responsestothementorquestionnairecomparedto31atmidterm.

2 Background,structureandrationalefortheproject

2.1. TheBASMEprojectwasdesignedtoaidbusinessdevelopmentforSMEsintheprocesssector,includingitssupplychain,withtheobjectiveofincreasingemploymentandturnoveronasustainablebasis.ItsoughttobenefittheSMEsinthreeways(streams)whichweredescribedasfollows: Businessaccelerationfromimmediatenewsalesopportunitiesintheprocess

industrysupplychain Businessaccelerationthroughinnovativedevelopmentintonewbusinessareas

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Businessaccelerationthroughthepersonalmentoringbyglobalbusinessleadersfromtheprocessindustrywhowouldmakedirectintroductionsintotheircurrentglobalsupplychains.

2.2. Eachstreamwastobeoverseenbyastrategicboardfromtheprocessindustry,ledbyaseniorindustrialistreportingtotheNEPICLeadershipTeam.InthefinalyearoftheprojectthestreamswererationalisedintoanInnovationstream,whereNEPICspreexistinginnovationgroupservedastheoversightboard,andacombinationoftheremainingtwostreamsoverseenbyasingleSMEthrustteam.

2.3. Thecontractperiodwasinitiallysettorunfrom20122014.ByagreementwithDCLGresourcewasinpracticespreadoveralongerperiod,runninginto2015:thetotalgrantallocationremainedthesameat1.5m.

2.4. TheprojectwasrunbyasmallteamwithinNEPIC,initiallyof3.5FTE,laterincreasedto4.5FTE,consistentwithacontractualcommitmentof4FTEfrom20122014.FromQ22015resourcewasreducedto2.5.Jobscreatedwithinbeneficiarycompaniesareregardedasindirect.

2.5. Inadditiontosupportingdirectlythejobsofthecoreteam,theprojectalsohelpedunderpinandsecurethewiderNEPICteamduringaperiodofintensechallengefortheorganisationasitadjustedtothedemiseofRDA(regionaldevelopmentagency)funding.

3 Theevolvingstructureandfocusoftheproject

0.1. Inthemidtermreviewitwasnotedthatthestructureoftheworkhadevolvedovertimeinresponsetobeneficiaryneedsandtheexperienceoftheprojectteam.Thisevolutionhascontinued,andfeedbackfromcompaniesindicatesthatithasenhancedthevaluetheyhavegained.ExamplesincludetheFirstFridayandClusterConnectinitiatives.

0.2. Deliveryhasbeenviaamixof1:1mentoringandeventsandactivitiesinvolvinggroupsofcompanies.Therehasbeenaconsistentmessagethatgroupactivitieshavebeeneffectiveinseveralways.Theyhaveprovedacosteffectivemethodofdelivery,makingefficientuseofthetimeofteammembersandmentors;theyhaveallowedlargernumbersofSMEstobeinvolvedandtobenefitthanwouldotherwisehavebeenfeasible;andtheyhaveenabledinteractionbetweenSMEswhichhasofferedvalueforthefirmsinvolvedinadditiontothatcontributedbyprojectteammembersandmentorsfromlargercompanies.

0.3. Inthemidtermevaluation,itwasobservedthattheinteractionbetweenfirmsthathasbeenanoutstandingfeatureofBASME,andindeedofthewiderworkofNEPIC,has

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benefitedfromthecollaborativeethosthatcharacterisestheprocesssectorintheNorthEastofEngland.WecommentedthatthisresultsinpartfromthesharedhistoryamongthosecompaniesinvolvedwhichhavedevelopedfromtheformerICIorganisationandamongmanyofthestaff,atleastinthesecondhalfoftheircareers,whotendtoknoweachotherandhaveasimilarearlycareerbackground.WealsostressedtheimportanceforthesectorofstepsbeingtakentopreservethisconnectivitybetweencompaniesandindividualsastheexICIgenerationmoveintoretirement.

0.4. Theseobservationsremainvalidbuttheclockisticking;fewerandfewerstaffnowdatebacktotheICIeraanditwouldbewiseforNEPICasawhole,withtheassistanceofpartnerssuchasCPIandtheLEPs,tohaveinplaceasystematicstrategyformaintainingtheconnectivityandcollegialityreferredtoabove.ThisisofcourseanissuethatgoesfarbeyondBASMEortheSMEcommunity.

0.5. Recommendation1:NEPICshouldmeetwithrelevantregionalpartnerstodevelopastrategyforsustainingthestronglysupportiveandcollegiatecharacteroftheNorthEastprocesssector.

0.6. Recommendation2:WhileBASMEandtheNEPICThrustteamsengagedindividualswithvaluableknowledgeandexperience,futureprogrammesshouldengageyoungerpeopleasfutureleadersoftheindustryhelpingtosustainindustrynetworks

0.7. DuringthecourseoftheprojectanumberofcollectivemechanismshavebeenintroducedspecificallyforBASMEorexistingNEPICmechanismsutilised,affordingcompaniesandmentorsarangeofopportunitiestonetwork,formrelationships,obtaininformationandseekguidance.Theseincludeworkshopsessions,theannualMeettheMembersconference,socialandawardsoccasions,andonasmallergroupleveltheFirstFridaysessions,ClusterConnectandlatterlyPharmaConnectmeetings.Thesedevelopmentsreflectawelcomewillingnessonthepartoftheprojectteamtoinnovateandtryoutnewmeetingformatsinordertoenhancebenefitstoparticipatingfirms.

0.8. Severalintervieweesandmeetingparticipantsstressedtheirappreciationoftheprogramme,withcommentssuchas"Ithelpsyoureflect""Helpedusincreaseourknowledgeinordertoplanforgrowth""Ifoundtheworkshopstobeabsolutelybrilliant""Ithoughtitwasareallyvaluableprogramme"

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"Pinpointsyourfocusratherthanwastesyourtime"."Ithelpedgetourfootinthedoor,tounderstandhowtopitchtosuppliers."

0.9. CommunicationwithSMEsisofcourseavitalpartofNEPIC'sworkandofBASME,anddigitalmediahaveanobviousparttoplay.Tothisend,theBASNETwebbasedfacilityisfunctionalbutappearslittleusedasyet.Weunderstanditistobereviewedattheendof2016anddependingonusageatthatstageadecisionwillhavetobetakenwithregardtocontinuation.AconcernhasbeenexpressedthattheneedtorememberaloginIDandpasswordmaydetersomefromusingthesite,orusingitasoftenasmightotherwisehavebeenthecase.

0.10. Recommendation3:PopularfeaturesofBASNETshouldbeincorporatedintothemainNEPICwebsite.

0.11. Thatsaid,itisapositivefeatureofBASMEthatwebandsocialmediamechanismsareamongthesupportingcast,notthemainplayers.Theprojectprovidesampleevidencethatpersonal,facetofacecontactwithindividualswithindustrycredibilityandafocusonclientservicestilldeliversthebestresults.

4 Deliveryteamandmentors

4.1. TheinitialexpectationwasthatBASMEwouldprovidementoringforSMEsfromindustryleadersintheNorthEast,particularlymembersofNEPICsLeadershipTeam.Asnotedabove,thementoringhasinpractice