Brexit impacts business metrics, here is how:
The leaders of UK startups and business will now need to change to their performance metrics and strategy.
An historic decision was made by the citizens of the United Kingdom with the announcement on Friday 24th June 2015 to leave the European Union after a referendum delivered a vote of 51.9% to leave and 48.1% to form a so called Brexit decision.
The impact on future UK business metrics needs to consider the uncertainties and certainties presented to it.
Analysis for uncertain political leadership
Any leader of a political party has an unknown future and the recent events have shown their leadership is under more stress than “normal”. A business traditional PEST (Political Economic Social Technological) analysis for this period of time will need to be reviewed and updated more frequently. Keen external knowledge of each EU state leadership will become more important to identify if more nations request their own referendums and political trends towards a changing relationship with the European Union.
Managing uncertain policies
General policy direction over recent years has been easier to predict, however the rapidly changing landscape will now require business leaders to engage with associations, regulators and political representatives like never before.
This is the time to assist political leaders with the correct full information so the formation of new future policies is based on as much fact and expert opinion as possible.
New metrics may need to be created to help provide this valuable information. Establishing responsible data gathering processes and meetings will be important to influence this process in the most positive manner.
Shaping an uncertain regulatory field.
The UK currently remains within the EU for another 2 years. This means that even if Article 50 was issued now we would not see a full UK exit until July 2018.
During this time, the regulatory constraints and requirements will remain when trading with the EU. It is most likely the future negotiated terms with the EU will require the UK to continue with these standards as a minimum.
This is now the time for the UK to perform metrics across the globe to create new benchmark values of expectation based on new trade areas and help define competitive advantage over its national competitors through the results of this benchmarking.
Creating insights of employee motivation
There are few UK companies that have zero foreign workers within its natural borders. Immigration levels from all over the world to the UK has included strong levels of integration from fellow Commonwealth members and EU states and these have benefited markets, business and the workers alike.
A common goal amongst lower skilled workers is the need for security and stability of employment. During the following months ahead a period of uncertainty will emerge and grow. This will be necessary for business leaders to seek methods to measure and gain insight of employee motivation.
The motivation levels to be measure do not just apply to EU workers within the UK but also native British citizens who can be affected by their fellow friends, colleagues and extended family members at risk due to policy changes in immigration.
Therefore a business should consider ensure quality data in the areas of emotional intelligence and employee satisfaction levels.
Securing the skills for tomorrow
Skills and technical knowledge are the life blood of every business. The election result increases the risk of change in workforce demographics and freedom of movement across borders. Therefore key skill areas should be explored to measure potential impacts and solutions.
Decisions to outsource or develop new training positions through investment are areas of metric growth and consideration.
Calculating currency and finance risks
In a global economy any significant change in currency rates can make huge opportunities or risks to each business.
Buying cheap Euro Spanish tomatoes in 2016 or machine turned component parts from USA in USD may impact the costs and profit levels of your business during these times of high volatility.
Setting up hedge metrics and strategic positions for financial governance and operational executions will continue to be and possible developed for more speedy reactions and trend analysis.
Mapping your supply chain and market base
Understanding your full supply chain is critical. Taking a deep dive at every level of service and component supply will be critical for metrics to identify any areas at risk.
These factors may include the requirements to hold adjusted stock levels if trading across none free trade areas and consideration of replenishment and administration tasks required to complete prior transactions.
Taking a deeper understanding of your market will offer new metric insights to understand where/when and how your products and services are used. This in itself is a powerful marketing exercise but for the context of the Brexit decision a business might discover new niches or markets that may no longer profitable to support.
Weights and Measures
The UK has a strong history using the Imperial weights and measures systems. The use of miles per hour for official speed regulation is one such example that impacts daily lives and never changed.
Expect a call within many industries to revert to old measures of yard, feet, inches, pounds, ounces and tonnes.
This will become a close consideration when negotiating products and in their design standards. Ensure your measuring systems can accommodate metric and imperial systems.
Taking action and moving forward.
To conclude this article on a fun note take a look at this video and use it as a form up uplifting humor with a serious hidden message.
The point is clear; by being outside the EU both camps will seek to be better than the other. This will create new opportunities and services plus hopefully drive fair competition for great prices and improved quality.
The decisions for the UK have been made and yet remain unclear in their conclusions and full ramifications. Taking on the recommendations I have put forward in this article, your business can be best prepared to secure the smoothest transition possible whilst making the biggest potential impact and control of your future.
Personal Side Note:
I was born from Irish parents and lived my youth and many years in England. After travelling around the world experiencing over 53 countries and settling with a family in Denmark, I feel not only European but a global person.
I voted remain in the EU even though many of the EU governance should be more democratic and made more directly accountable. I hope a positive outcome over the next few years’ produces diversity but with a sense of common humanity for the UK and its global fellow states.
- Written by James Doyle, founder of JAMSO, success consultant and trainer. We have over 100 free articles, tools and resources for your success, including a great newsletter, subscribe now.
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