{"id":586,"date":"2010-06-23T17:54:30","date_gmt":"2010-06-23T16:54:30","guid":{"rendered":"https:\/\/news.icebreakerexecutive.com\/?p=364"},"modified":"2010-06-23T17:54:30","modified_gmt":"2010-06-23T16:54:30","slug":"icebreaker-june-update-the-challenge-of-an-inactive-nation","status":"publish","type":"post","link":"https:\/\/winningthinking.co.uk\/?p=586","title":{"rendered":"Icebreaker June update – “The challenge of an inactive nation”"},"content":{"rendered":"

<\/a>\u201c<\/strong>Delivering Results – Transferring Skills and Leaving Legacies<\/strong>\u201d<\/strong><\/p>\n

\u00a0<\/strong>Why is it quiet?<\/strong> \u201cMany businesses are failing to call in turnaround specialists \u2013 as they don\u2019t recognise they are struggling\u201d – Telegraph 2008<\/em>. More complicated capital<\/strong> and stakeholder structures make it more difficult to save ailing companies – PWC 2008<\/em>. \u201cThe UK is the only country that does not have a plan to clear their deficit in 5 years. The<\/strong> Banks behaviours are dominated by<\/strong> <\/strong>\u201cextend and pretend\u201d, or \u201ca rolling loan gathers no loss\u201d Low interest rates are artificial through the Bank of England printing \u00a3200Bn of cash\u201d – Jon Moulton <\/em><\/p>\n

What\u2019s the problem?<\/strong> <\/strong>UK plc has not admitted a problem, rather has just printed c\u00a3200Bn of fresh capital and taken control of the banks. A parallel<\/strong> Our deficit is rising faster than Ireland – Ireland was heavily reliant on property BUT they could not devalue their currency, resulting in a weak economy and bust banks. UK Property companies remain the hardest hit \u2013over 75% of UK bank lending being in property, and only 3% to industry. \u00a0A perspective?<\/strong> \u201cThe UK now has 2x the debt vs. GDP and 1.5x the deficit vs. GBP of the 1970s, and maybe a deficit rising at the same rate of 1944. \u201cWill interest rates right suddenly? \u2013 Yes they will. The UK is very unnatural; very low interest rates, state owned banks, politically run insolvency and restructuring processes, massive HMRC funds held, which will all reverse when interest rates rise. An Interest rate rise will drive up the cost of servicing debt, causing the economy to go further backwards. Sustained growth?<\/strong> UK plc can\u2019t keep solving the problem of too much debt with more debt. This is a period of distress, a 13% deficit and time for recapitalisation. A bit more debt will rebuild short term inventories BUT if the cost of debt service does exceed growth we will be in long period of decline. The Public sector;<\/strong> The UK economy is dependent on the state for 60% in some areas; 30% from the public sector 30% dependent on the public sector, and only 30% private sector. The economy can only grow slowly because unwieldiness of the public sector; its complexity is crushing productivity.\u201d – Jon Moulton<\/p>\n

When will it happen?<\/strong> <\/strong>The trigger will be the interest rates rise, which is withholding huge pent up demand. Corporate failures are only about 25% of the 90s yet we now have a recession 3x the scale of the previous one! At the same time HMRC debt may be called in \u2013 the estimate is up to \u00a325Bn \u2013 but can\u2019t be sure as government don\u2019t tell us.<\/p>\n

The Solution.<\/strong> <\/strong>Tax – no more than \u00a310Bn of increased taxes is possible. Reduced Living standards<\/strong>, through reduced wages; inflation will reduce our ability to buy consumer goods. The answer is that we need world leading industries,<\/span> this is what we have to build from and we all need to make them great places to work. Fortunately we have a number of successful clients who are acting early<\/a>.\u00a0 Icebreaker programs are a more effective solution<\/strong> to turnaround and deliver lasting improvements. We do this by pragmatically applying our multi sector award winning experience to provide clients the framework for increased engagement, responsibility & innovation to deliver value at every level. This in turn transforms the customer experience.<\/p>\n

The opportunity.<\/strong> <\/strong>There will be opportunities for restructuring skills of every type; it\u2019s much cheaper to rescue a viable company than close and start again. Rescuing viable businesses is about changing the operating strategy, recapitalising and stopping cash negative activity rather than growing. As the UK has so little natural resources, and we have a pact with the ROW to provide them we have to focus on being smarter than the rest about the way of working & collaborating AND<\/strong> it\u2019s NOT<\/strong> just about technology. <\/strong><\/p>\n

But who will point out the problem? Pass the mandate? And who has the skills to engage in these circumstances? Banks will offer a chance if there is a visible business plan \u2013 said ONE respondent!<\/p>\n

\u00a0You cannot correct the course of something that is not moving! \u201cCometh the hour\u201d \u201ccometh icebreaker<\/span>\u201d \u201ccometh the action\u201d<\/p>\n

Tom Pickering CEO,\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 E: office@icebreakerexecutive.com<\/a> \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 T: 0207 193 5518\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 .<\/p>\n","protected":false},"excerpt":{"rendered":"

\u201cDelivering Results – Transferring Skills and Leaving Legacies\u201d \u00a0Why is […]<\/p>\n","protected":false},"author":5,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[15,1],"tags":[],"class_list":["post-586","post","type-post","status-publish","format-standard","hentry","category-management-development","category-uncategorized"],"yoast_head":"\nIcebreaker June update - "The challenge of an inactive nation" - www.winningthinking.co.uk<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/winningthinking.co.uk\/?p=586\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Icebreaker June update - "The challenge of an inactive nation" - www.winningthinking.co.uk\" \/>\n<meta property=\"og:description\" content=\"\u201cDelivering Results – Transferring Skills and Leaving Legacies\u201d \u00a0Why is [...]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/winningthinking.co.uk\/?p=586\" \/>\n<meta property=\"og:site_name\" content=\"www.winningthinking.co.uk\" \/>\n<meta property=\"article:published_time\" content=\"2010-06-23T16:54:30+00:00\" \/>\n<meta name=\"author\" content=\"ionostest\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"ionostest\" \/>\n\t<meta name=\"twitter:label2\" content=\"Estimated reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/winningthinking.co.uk\\\/?p=586#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/winningthinking.co.uk\\\/?p=586\"},\"author\":{\"name\":\"ionostest\",\"@id\":\"https:\\\/\\\/winningthinking.co.uk\\\/#\\\/schema\\\/person\\\/018fe961d8c94a6bd8f767d89aff5614\"},\"headline\":\"Icebreaker June update – “The challenge of an inactive nation”\",\"datePublished\":\"2010-06-23T16:54:30+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/winningthinking.co.uk\\\/?p=586\"},\"wordCount\":708,\"commentCount\":0,\"articleSection\":[\"Management development\",\"Uncategorized\"],\"inLanguage\":\"en-GB\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/winningthinking.co.uk\\\/?p=586#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/winningthinking.co.uk\\\/?p=586\",\"url\":\"https:\\\/\\\/winningthinking.co.uk\\\/?p=586\",\"name\":\"Icebreaker June update - 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