Episode 61

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:00:03. > :00:13.continued today. Now it's time for Show Me The Money

:00:13. > :00:29.

:00:29. > :00:33.This is Show Me The Money, your weekly guide to who's making the

:00:33. > :00:36.cash, how they're doing it, and what it means for the way we work.

:00:36. > :00:40.With us tonight, PY Gerbeau. Don't mention the Dome. He now runs X-

:00:40. > :00:44.Leisure. Julie White, diamonds are her best friend but only because

:00:44. > :00:48.she uses them to drill big holes in concrete. And Steve Hawkes is the

:00:48. > :00:53.rough diamond in charge of the business news at The Sun.

:00:53. > :00:55.Some sparkles of optimism during the week. Manufacturing, the

:00:55. > :00:59.building trade, and the accountants, hairdressers and all the others in

:00:59. > :01:02.services all said business was better than they thought. But the

:01:02. > :01:11.Bank of England is still likely to pump another 50 billion quid into

:01:11. > :01:17.the economy later this week. That a top of all the other money it has

:01:17. > :01:22.put in. Does the Bank of England need to act? I think we are still

:01:22. > :01:27.on the sick bed. We are getting better. We are hearing that in

:01:27. > :01:31.survey evidence. Dare we say green shoots. But there will be another

:01:31. > :01:35.bit of medicine we need to get us over the hump and protect us from

:01:35. > :01:43.the worst in Europe which should still come. Do you think we need

:01:43. > :01:49.help? Definitely. We need to push the country on, small and medium-

:01:49. > :01:55.sized businesses. But your business is doing well? Even in these tough

:01:55. > :02:00.times. We are employee. We have 12 new apprentices. It is a great

:02:00. > :02:05.start. So why does the Bank of England need to help it economy?

:02:05. > :02:11.means to help a small and medium enterprises to get rid of the red

:02:11. > :02:15.tape. That is what I think. Another issue we have discussed many times.

:02:15. > :02:22.You run a leisure company. You encourage people to spend money to

:02:22. > :02:28.have fun. And they are still doing it. It is cyclical. Leisure has

:02:28. > :02:32.always done well historically. Leisure and went from a luxury item

:02:32. > :02:37.to the commodity because if you spend less money on travel and

:02:37. > :02:43.retell, you still want to spend money with family. How are you

:02:43. > :02:48.feeling about the economy? It is difficult. There is no mystery.

:02:48. > :02:52.Even their leisure has done well, we are dependent on the global

:02:52. > :02:56.impact and the euro so it is very good news that the Bank of England

:02:56. > :03:02.will inject more money into the economy, quantitative easing. I

:03:02. > :03:08.love that. What I don't understand is we talk to business leaders

:03:08. > :03:13.every Sunday night on BBC News, and they say, as you have,

:03:13. > :03:22.congratulations, the business is doing well. And yet when you ask

:03:22. > :03:31.how the economy is, the words are a lot more carport. -- mumbled.

:03:31. > :03:36.Leisure is a certain area so it is not all great and good. But it is

:03:36. > :03:39.nice to have positivity on a Sunday night. But I wonder whether

:03:39. > :03:44.business leaders are afraid to be optimistic because if something

:03:44. > :03:48.were to happen, they don't want people to look at them. I think

:03:48. > :03:53.they are afraid to be pessimistic. If any company says they are not

:03:53. > :03:57.going to do as well as they should be, their shares will tank so they

:03:57. > :04:01.need to talk themselves up, but with the economy, they don't need

:04:01. > :04:06.to be so specific. The Bank of England has put a lot of money into

:04:06. > :04:11.the economy now through various mechanisms. Why don't they just

:04:11. > :04:14.give the money directly to consumers? Because it would be to

:04:14. > :04:22.inflationary. Quantitative easing is supposed to help inflation as

:04:22. > :04:26.well. If they'd just dropped money out of a helicopter, it would be to

:04:26. > :04:32.inflationary. If the Bank of England were two shower fivers!

:04:32. > :04:36.would open the roof! Behave! Time for Boom or Bust, our quick

:04:36. > :04:39.flick through the news you tried to miss this week. Those crazy

:04:39. > :04:46.Americans going crazy over tonight's Super Bowl. Here's a

:04:46. > :04:49.little treat for some of them from It's a cornbread cupcake with blue

:04:49. > :04:53.cheese frosting and an actual chicken wing on top. Savoury

:04:53. > :04:57.overload. If you think shovelling the snow

:04:57. > :05:04.from your front path is hard, don't try this at home. These are Chinese

:05:05. > :05:07.Special Forces. Doing a little light training in a very cold place.

:05:07. > :05:12.Their tasks include carrying tree trunks, throwing tyres and rubbing

:05:12. > :05:18.snow into their half naked bodies in temperatures of -20.

:05:18. > :05:22.Bonuses, but these ones you'll like. A bus company boss in Australia

:05:22. > :05:30.sold the family business. To say thanks to the workers, he gave them

:05:30. > :05:38.ten million quid to share. And all the workers at the company in

:05:38. > :05:43.Melbourne will keep their jobs after the sale.

:05:43. > :05:49.I don't know if a chicken wing on top of blue cheese frosting... How

:05:49. > :05:57.does that match up with French cuisine? I have been watching the

:05:57. > :06:02.Super Bowl though! New ideas everywhere in the business. If you

:06:02. > :06:06.go to Heston Blumenthal, I am sure you would enjoy yourself! How do

:06:06. > :06:11.you get innovation in your business? How do you encourage

:06:11. > :06:15.people to come up with ideas? Leisure and entertainment is all

:06:15. > :06:20.about innovation. We spent a helluva lot of money on research

:06:20. > :06:25.and development but it is not about new ideas, it is new ideas that are

:06:25. > :06:28.viable. If you find an innovation and you fail, you do not have a

:06:28. > :06:32.second chance, whereas in the past six sees it would have been

:06:32. > :06:39.different. You have to be good, lucky and make sure an idea is

:06:39. > :06:47.viable. We are opening a wave pool in Castleford, which is surf waves,

:06:47. > :06:52.and hopefully it will do well. you have to be lucky in finding the

:06:52. > :06:55.right people? That is more scientific. Cruise liners tried to

:06:55. > :07:01.understand what the market will look like in 10 years' time because

:07:01. > :07:04.that is what they need to build their boat. We do it that way. It

:07:04. > :07:09.is all about making sure you have the right people to make it work.

:07:09. > :07:15.You might think that drilling into concrete is the traditional

:07:15. > :07:19.business but new ideas are vitally important to your business. You had

:07:19. > :07:26.a contract where you had to have quieter drilling so you didn't

:07:26. > :07:34.disturb a shock? Yes, a job in Plymouth. -- shark. We are working

:07:34. > :07:41.with the Aquarian, so we do not disturb the shops -- the aquarium.

:07:41. > :07:47.So you get a different rule? It is made in a different ways. We bring

:07:47. > :07:51.in different electricity powers to turn of the drills and motors and

:07:51. > :07:55.it is all new technology and that is the great thing about bringing

:07:55. > :08:03.new people into the industry. this why you have won the concrete

:08:03. > :08:08.Oscars that is on the desk? The world of concrete awards? Yes, in

:08:08. > :08:14.Las Vegas. This was won by two apprentices in my Newcastle branch,

:08:14. > :08:19.who came up with a highly innovative way of taking some royal

:08:19. > :08:25.Doulton tiles that were over 100 years old, down from a wall, and

:08:25. > :08:30.they saved them all, and they are worth a lot of money. To get people

:08:30. > :08:33.to be able to be that innovative, to find these new ways of working,

:08:34. > :08:39.you on not putting them through the type of training squad -- course

:08:39. > :08:43.that the Chinese Special forces do. I don't make them role in the snow

:08:43. > :08:49.but training is really important. We push our work force in

:08:49. > :08:52.apprentices. 45% of our work force have been through an apprenticeship

:08:53. > :08:57.course and it gives them the feel that they are valued and they can

:08:57. > :09:01.find new technology, and I also go around the world and finds

:09:01. > :09:07.technology and bring it back to them. If we have time, I want to

:09:07. > :09:11.ask about the elephant and a keep- fit programme. Bonuses. After so

:09:11. > :09:16.much bad news and bad publicity, this sounded like a heart-warming

:09:16. > :09:19.story. This came up early in the week we we were talking about

:09:19. > :09:24.Stephen Hester. He sold his business and put the money

:09:24. > :09:29.overnight into his staff's bank account. Wouldn't it be brilliant

:09:29. > :09:34.if Bob Diamond gave us -- gave his 3 billion to his staff. We know he

:09:34. > :09:40.listens every Sunday night! You make it sound like it was a

:09:40. > :09:49.surprise? They did him -- they did not know it was coming. They were

:09:49. > :09:52.over the moon. How do you incentivise staff? Bonuses. We

:09:52. > :09:58.incentivise people who go the extra mile and we give bonuses right from

:09:58. > :10:03.the directors to the manages to the work force. It is a good thing in

:10:03. > :10:09.my company, not a dirty word. they the right thing for you?

:10:10. > :10:16.an incentive. Stephen Hester gets a lot of stick. He is doing a great

:10:16. > :10:19.job. What amazes me is he takes a lot of money home, but an average

:10:19. > :10:25.football player in this country and my country takes about 10 times

:10:25. > :10:30.that and that doesn't shock anybody. Why do you think that is? Sport is

:10:30. > :10:36.the opiate of the people? I have had a theory for some time. The

:10:36. > :10:40.football player we see in action, or them rugby player, on the pitch.

:10:40. > :10:46.You can tell immediately whether they of one form or not. You don't

:10:46. > :10:52.have that with bankers. A lot of the public think, what do they do

:10:52. > :10:56.that makes them entitled to that money? If the football player, like

:10:56. > :11:02.the England losing to the frogs in the World Cup qualifier of the

:11:02. > :11:08.Rugby...! You lost against Wales, I am really sorry for you! We were

:11:08. > :11:13.dropped, is what we were. Great game. If they played badly, they

:11:13. > :11:18.still get paid, and they get paid vast sums of money and it is not a

:11:18. > :11:22.problem. A business person takes a bit of money home and everybody

:11:22. > :11:28.wants to take him to be cleaner. I think Stephen Hester is doing a

:11:28. > :11:34.very good job for the bank honestly. You were a professional sports

:11:34. > :11:43.figure. Didn't make any money e- vote! Ice Hockey! Don't make any

:11:43. > :11:49.money! Were there lessons from your sporting career that we useful to

:11:49. > :11:54.you in business? Yes. There well, there are and there will be.

:11:54. > :11:59.Leadership by example, managing stress, managing success. It has a

:11:59. > :12:03.huge impact on business. I tried to surround myself with people who

:12:03. > :12:09.have those human values of team spirit and all those things that

:12:09. > :12:13.are vilified. I think sport values might be one of the few things that

:12:13. > :12:18.will link with us in terms of engaging people to be hungry and

:12:18. > :12:24.want to succeed. Take a look at the main sports story tonight. John

:12:24. > :12:28.Terry is stripped of the captain's armband. Tonight, Fabio Capello

:12:28. > :12:35.says he disagrees and still regards John Terry as the legitimate

:12:35. > :12:39.captain. Where is the leadership in that? It is a difficult thing. I am

:12:39. > :12:47.sure John Terry has helped Fabio Capello dramatically in the

:12:47. > :12:50.dressing room. But you can imagine the FA, it is a bit of an image

:12:51. > :12:56.problem. You can respect the coach and I think it is frustrating not

:12:56. > :13:00.to have been part of the debate, I think that is his main frustration.

:13:00. > :13:06.I am sure John Terry was a good person in the dressing room but can

:13:06. > :13:12.England afford to have that sort of captain with that image? The role

:13:12. > :13:18.of the coach in speaking out like this surely does not fit within the

:13:18. > :13:24.hierarchy of how sport is run? are in the generation of Twitter.

:13:24. > :13:28.It is online, live, all the time. You can stop it and I think you

:13:28. > :13:34.need to live with it. I think it is fine for Fabio Capello to express

:13:34. > :13:40.he is not happy with the decision. Would you allow that level of

:13:40. > :13:46.insubordination in your business? Leadership by example is fine!

:13:46. > :13:51.leadership is not about cracking down? The boss should have a right

:13:51. > :13:55.of veto but you don't force respect, you earned it. If you don't

:13:55. > :13:58.delegate and let people express what they strongly feel, as long as

:13:58. > :14:03.it is not damaging for the brand and the business, I don't think

:14:03. > :14:07.Fabio Capello has damaged the England brand. He is defending his

:14:07. > :14:12.captain. You have to respect the decision of the FA who says, we are

:14:12. > :14:22.not sure we want that kind of image for England. Let's talk about the

:14:22. > :14:24.

:14:24. > :14:29.Does the economy benefit from the Olympics? I certainly hope so.

:14:29. > :14:34.There's been enough debacles about There's been enough debacles about

:14:34. > :14:41.the budget D us Londoners paying for it for the next 20 years.

:14:41. > :14:45.coming in on budget. If you have a �2 billion budge and go �12 billion

:14:45. > :14:52.budget. We would be sacked quickly if we were in the City. It should

:14:52. > :14:56.be good news for the country. What bothers me is I don't feel the buzz.

:14:56. > :15:00.As an ex-Olympian I don't feel the buzz. As a business all we're

:15:00. > :15:05.looking at is, are people going to be able to get work? Instead of,

:15:05. > :15:13.you know what, we'll put TVs there and have a party for this and that.

:15:13. > :15:17.I think we should do more PR and the news media should roll the

:15:17. > :15:27.tombola and get on with it. Did you have a falling out with the French

:15:27. > :15:30.

:15:30. > :15:36.Olympics? It's terrible. As - I was young. I was going to say good

:15:36. > :15:43.looking, but it's you and I. Because I was ambassador for the

:15:43. > :15:47.Games. I live in London. I stood up and said, it should be here, I got

:15:47. > :15:52.suspended by the French companies. They said I was a Parisian, I

:15:52. > :15:59.should be ashamed. Have they let you back in? I still have my

:15:59. > :16:02.passport. You can hold on with that. And your love of food. How do you

:16:02. > :16:09.fancy �1500 to take on someone in your business? The Government is

:16:09. > :16:14.handing that out to get companies to hire an apprentice. As it is

:16:14. > :16:18.National Apprentice Week this is something you may hear a lot about.

:16:18. > :16:23.Julie, your apprenticeship scheme in your business. You run a

:16:23. > :16:28.vigorous one. You said you have a large number of apprentices there.

:16:28. > :16:32.When you look at other companies and you see they don't have an

:16:32. > :16:36.apprentice scheme, do you think they are just going to take all my

:16:36. > :16:40.talented people once I have spent all this money getting them up to

:16:40. > :16:46.speed? Yes, that is definitely possible that it can happen. Once I

:16:46. > :16:54.feel, once you have actually invested in an apprentice, you have

:16:54. > :16:59.given the values that they usually stay with you. They stay with the

:16:59. > :17:05.company. They advertise the company. They are great ambassadors. If they

:17:05. > :17:09.do go elsewhere, then at least I'm giving something to a very

:17:09. > :17:15.specialised industry as mine. need people with specialised skills.

:17:15. > :17:23.Definitely. It is not trying to diminish your contribution, but in

:17:23. > :17:27.your business's self-interest? I cannot get one from a school or

:17:27. > :17:31.university. I have to get them and train in them. I have to invest in

:17:31. > :17:36.the person. It is like gambling. You invest in the person. You hope

:17:36. > :17:41.they come out the other end and they usually do. They come out with

:17:41. > :17:47.a great knowledge of if industry. �1500 is neither here nor there?

:17:47. > :17:52.The amount of red tape to get it, for me, that's not worth it. I am

:17:52. > :17:59.investing for the company and future. You are trying to get young

:17:59. > :18:07.women into your business. Yes. I'm actually doing an apprenticeship

:18:08. > :18:11.scheme myself. I wanted to know why it had done so well for my company.

:18:11. > :18:17.I actually decided to do it myself. I know why, because they know they

:18:17. > :18:23.are valued. I would like my first woman apprentice. I really would.

:18:23. > :18:31.As yet still haven't got one? still have not found her. What will

:18:31. > :18:36.fix it? Stephen is on the case. We'll get you one. You have done a

:18:36. > :18:42.lot over the last year about looking for signs of companies that

:18:42. > :18:49.take this seriously and give youngsters a chance. Julie's

:18:49. > :18:54.company is a great example. There are apprenticeships out there and

:18:54. > :18:57.companies hiring that cannot find people. There are vacancies there.

:18:57. > :19:01.It's about getting people and letting people know there are

:19:01. > :19:06.vacancies, how these schemes are. We went out on the road last year,

:19:06. > :19:10.talked about it. It is getting through. What do we do with

:19:10. > :19:16.companies who don't spend the money? We publicise the fact they

:19:16. > :19:20.don't do it. It is all about Twitter. This message gets out

:19:20. > :19:30.quickly. I presume after this programme someone will ask how they

:19:30. > :19:35.

:19:35. > :19:44.can get on it? SMEs need help. I am on the internet. We drilled a hole

:19:44. > :19:52.in the wall in elephant tank in Twycross, so he was becoming lazy.

:19:53. > :19:57.They made him stretch through a hole, so it made him exercise his

:19:57. > :20:02.trunk. We made him lane up. When they came to you -- lean up. When

:20:02. > :20:05.they came to you, did you think they were pulling your leg? They

:20:05. > :20:10.didn't think it could be possible. We told them it could be. They

:20:10. > :20:15.wanted a large hole, which was no problem. We drilled it in one hole

:20:15. > :20:20.and actually took the core away. Made it clean. There was no noise,

:20:20. > :20:23.no mess. The elephant had a baby elephant. The elephants were there

:20:24. > :20:28.when you did the work? They were actually very inquisitive about

:20:28. > :20:31.what we were doing. They were trying to keep them back. They were

:20:31. > :20:36.very inquisitive. When we talk about innovation in business, that

:20:36. > :20:41.is probably the best I have heard for a long time. Walls may have

:20:41. > :20:45.ears, but businesses now have eyes. Some are resorting to the latest

:20:45. > :20:50.technology to keep one eye on what you're up to when you're shopping.

:20:50. > :20:54.Victoria Fritz has her eye on a good story. Do you ever get the

:20:54. > :20:59.feeling you're being watched? Technology like this is turning

:20:59. > :21:02.businesses into super sleuths. have we got here? We have two

:21:02. > :21:08.lenses. One is the field of vision lens. That is recording everything

:21:08. > :21:11.in front of you. The other lens here, this small box s a camera

:21:11. > :21:14.effectively picking up your eye. We are merging the two bits of

:21:14. > :21:19.information, which allows us to work out exactly where your eye,

:21:19. > :21:24.what you are looking at, whether it will end up with a crosshair on the

:21:24. > :21:29.video. That is where you are processing. Where your eye is

:21:29. > :21:34.looking. Eye-tracking was developed by an organisation called Kinetic.

:21:34. > :21:40.They looked at ways that pilots could control armament when in

:21:40. > :21:43.fighting situations. These days everyone from

:21:43. > :21:48.supermarkets to air traffic controllers is using eye tracking

:21:48. > :21:52.to work out what grabs our attention. We have instances where

:21:52. > :21:57.one of the major drink manufacturers uses this technology

:21:57. > :22:01.to work out what was working in the promotional market in pubs and bars

:22:01. > :22:05.and restaurants. What came out of it was a lot of money they were

:22:05. > :22:10.spending on promotional activity was being wasted. As a result of

:22:10. > :22:16.the study we ran they cut huge amounts out of their budget, with

:22:16. > :22:24.no concern of a decrease in sales. Consumer research is dwelling to

:22:24. > :22:31.predict our thoughts. The area -- looking to predict our thoughts.

:22:31. > :22:35.There is the amygdala and the putamen. The putamen helps us form

:22:35. > :22:41.habits. Scanning these areas, allows researchers to test out new

:22:41. > :22:44.products before they come to market. We know from research about 80% of

:22:44. > :22:47.the products that come to market fail in their first year. It is

:22:47. > :22:52.vital that the company has the correct information. By tapping

:22:52. > :22:55.into the emotional desires of consumers we can help the companies

:22:55. > :23:02.design products which will be success until the marketplace and

:23:02. > :23:07.the consumers will want to buy. Accurately predicting our behave

:23:07. > :23:12.wror is the holy -- behaviour is The Holy Grail for businesses.

:23:12. > :23:15.look for adverts which grab attention and also adverts that

:23:16. > :23:22.stay in the memory. Obviously if consumers don't remember the add

:23:22. > :23:26.they will not remember the product. Neuromarketing is very much an art

:23:26. > :23:33.than an exact science. One thing is for certain, it's not just the

:23:33. > :23:38.scientists that are now in the business of how we manage our minds.

:23:38. > :23:43.Next week, it's new dogs with new tricks for old businesses. We have