Episode 61 Show Me the Money

continued today. Now it's time for Show Me The Money

This is Show Me The Money, your weekly guide to who's making the

cash, how they're doing it, and what it means for the way we work.

With us tonight, PY Gerbeau. Don't mention the Dome. He now runs X-

Leisure. Julie White, diamonds are her best friend but only because

she uses them to drill big holes in concrete. And Steve Hawkes is the

rough diamond in charge of the business news at The Sun.

Some sparkles of optimism during the week. Manufacturing, the

building trade, and the accountants, hairdressers and all the others in

services all said business was better than they thought. But the

Bank of England is still likely to pump another 50 billion quid into

the economy later this week. That a top of all the other money it has

put in. Does the Bank of England need to act? I think we are still

on the sick bed. We are getting better. We are hearing that in

survey evidence. Dare we say green shoots. But there will be another

bit of medicine we need to get us over the hump and protect us from

the worst in Europe which should still come. Do you think we need

help? Definitely. We need to push the country on, small and medium-

sized businesses. But your business is doing well? Even in these tough

times. We are employee. We have 12 new apprentices. It is a great

start. So why does the Bank of England need to help it economy?

means to help a small and medium enterprises to get rid of the red

tape. That is what I think. Another issue we have discussed many times.

You run a leisure company. You encourage people to spend money to

have fun. And they are still doing it. It is cyclical. Leisure has

always done well historically. Leisure and went from a luxury item

to the commodity because if you spend less money on travel and

retell, you still want to spend money with family. How are you

feeling about the economy? It is difficult. There is no mystery.

Even their leisure has done well, we are dependent on the global

impact and the euro so it is very good news that the Bank of England

will inject more money into the economy, quantitative easing. I

love that. What I don't understand is we talk to business leaders

every Sunday night on BBC News, and they say, as you have,

congratulations, the business is doing well. And yet when you ask

how the economy is, the words are a lot more carport. -- mumbled.

Leisure is a certain area so it is not all great and good. But it is

nice to have positivity on a Sunday night. But I wonder whether

business leaders are afraid to be optimistic because if something

were to happen, they don't want people to look at them. I think

they are afraid to be pessimistic. If any company says they are not

going to do as well as they should be, their shares will tank so they

need to talk themselves up, but with the economy, they don't need

to be so specific. The Bank of England has put a lot of money into

the economy now through various mechanisms. Why don't they just

give the money directly to consumers? Because it would be to

inflationary. Quantitative easing is supposed to help inflation as

well. If they'd just dropped money out of a helicopter, it would be to

inflationary. If the Bank of England were two shower fivers!

would open the roof! Behave! Time for Boom or Bust, our quick

flick through the news you tried to miss this week. Those crazy

Americans going crazy over tonight's Super Bowl. Here's a

little treat for some of them from It's a cornbread cupcake with blue

cheese frosting and an actual chicken wing on top. Savoury

overload. If you think shovelling the snow

from your front path is hard, don't try this at home. These are Chinese

Special Forces. Doing a little light training in a very cold place.

Their tasks include carrying tree trunks, throwing tyres and rubbing

snow into their half naked bodies in temperatures of -20.

Bonuses, but these ones you'll like. A bus company boss in Australia

sold the family business. To say thanks to the workers, he gave them

ten million quid to share. And all the workers at the company in

Melbourne will keep their jobs after the sale.

I don't know if a chicken wing on top of blue cheese frosting... How

does that match up with French cuisine? I have been watching the

Super Bowl though! New ideas everywhere in the business. If you

go to Heston Blumenthal, I am sure you would enjoy yourself! How do

you get innovation in your business? How do you encourage

people to come up with ideas? Leisure and entertainment is all

about innovation. We spent a helluva lot of money on research

and development but it is not about new ideas, it is new ideas that are

viable. If you find an innovation and you fail, you do not have a

second chance, whereas in the past six sees it would have been

different. You have to be good, lucky and make sure an idea is

viable. We are opening a wave pool in Castleford, which is surf waves,

and hopefully it will do well. you have to be lucky in finding the

right people? That is more scientific. Cruise liners tried to

understand what the market will look like in 10 years' time because

that is what they need to build their boat. We do it that way. It

is all about making sure you have the right people to make it work.

You might think that drilling into concrete is the traditional

business but new ideas are vitally important to your business. You had

a contract where you had to have quieter drilling so you didn't

disturb a shock? Yes, a job in Plymouth. -- shark. We are working

with the Aquarian, so we do not disturb the shops -- the aquarium.

So you get a different rule? It is made in a different ways. We bring

in different electricity powers to turn of the drills and motors and

it is all new technology and that is the great thing about bringing

new people into the industry. this why you have won the concrete

Oscars that is on the desk? The world of concrete awards? Yes, in

Las Vegas. This was won by two apprentices in my Newcastle branch,

who came up with a highly innovative way of taking some royal

Doulton tiles that were over 100 years old, down from a wall, and

they saved them all, and they are worth a lot of money. To get people

to be able to be that innovative, to find these new ways of working,

you on not putting them through the type of training squad -- course

that the Chinese Special forces do. I don't make them role in the snow

but training is really important. We push our work force in

apprentices. 45% of our work force have been through an apprenticeship

course and it gives them the feel that they are valued and they can

find new technology, and I also go around the world and finds

technology and bring it back to them. If we have time, I want to

ask about the elephant and a keep- fit programme. Bonuses. After so

much bad news and bad publicity, this sounded like a heart-warming

story. This came up early in the week we we were talking about

Stephen Hester. He sold his business and put the money

overnight into his staff's bank account. Wouldn't it be brilliant

if Bob Diamond gave us -- gave his 3 billion to his staff. We know he

listens every Sunday night! You make it sound like it was a

surprise? They did him -- they did not know it was coming. They were

over the moon. How do you incentivise staff? Bonuses. We

incentivise people who go the extra mile and we give bonuses right from

the directors to the manages to the work force. It is a good thing in

my company, not a dirty word. they the right thing for you?

an incentive. Stephen Hester gets a lot of stick. He is doing a great

job. What amazes me is he takes a lot of money home, but an average

football player in this country and my country takes about 10 times

that and that doesn't shock anybody. Why do you think that is? Sport is

the opiate of the people? I have had a theory for some time. The

football player we see in action, or them rugby player, on the pitch.

You can tell immediately whether they of one form or not. You don't

have that with bankers. A lot of the public think, what do they do

that makes them entitled to that money? If the football player, like

the England losing to the frogs in the World Cup qualifier of the

Rugby...! You lost against Wales, I am really sorry for you! We were

dropped, is what we were. Great game. If they played badly, they

still get paid, and they get paid vast sums of money and it is not a

problem. A business person takes a bit of money home and everybody

wants to take him to be cleaner. I think Stephen Hester is doing a

very good job for the bank honestly. You were a professional sports

figure. Didn't make any money e- vote! Ice Hockey! Don't make any

money! Were there lessons from your sporting career that we useful to

you in business? Yes. There well, there are and there will be.

Leadership by example, managing stress, managing success. It has a

huge impact on business. I tried to surround myself with people who

have those human values of team spirit and all those things that

are vilified. I think sport values might be one of the few things that

will link with us in terms of engaging people to be hungry and

want to succeed. Take a look at the main sports story tonight. John

Terry is stripped of the captain's armband. Tonight, Fabio Capello

says he disagrees and still regards John Terry as the legitimate

captain. Where is the leadership in that? It is a difficult thing. I am

sure John Terry has helped Fabio Capello dramatically in the

dressing room. But you can imagine the FA, it is a bit of an image

problem. You can respect the coach and I think it is frustrating not

to have been part of the debate, I think that is his main frustration.

I am sure John Terry was a good person in the dressing room but can

England afford to have that sort of captain with that image? The role

of the coach in speaking out like this surely does not fit within the

hierarchy of how sport is run? are in the generation of Twitter.

It is online, live, all the time. You can stop it and I think you

need to live with it. I think it is fine for Fabio Capello to express

he is not happy with the decision. Would you allow that level of

insubordination in your business? Leadership by example is fine!

leadership is not about cracking down? The boss should have a right

of veto but you don't force respect, you earned it. If you don't

delegate and let people express what they strongly feel, as long as

it is not damaging for the brand and the business, I don't think

Fabio Capello has damaged the England brand. He is defending his

captain. You have to respect the decision of the FA who says, we are

not sure we want that kind of image for England. Let's talk about the

Does the economy benefit from the Olympics? I certainly hope so.

There's been enough debacles about There's been enough debacles about

the budget D us Londoners paying for it for the next 20 years.

coming in on budget. If you have a �2 billion budge and go �12 billion

budget. We would be sacked quickly if we were in the City. It should

be good news for the country. What bothers me is I don't feel the buzz.

As an ex-Olympian I don't feel the buzz. As a business all we're

looking at is, are people going to be able to get work? Instead of,

you know what, we'll put TVs there and have a party for this and that.

I think we should do more PR and the news media should roll the

tombola and get on with it. Did you have a falling out with the French

Olympics? It's terrible. As - I was young. I was going to say good

looking, but it's you and I. Because I was ambassador for the

Games. I live in London. I stood up and said, it should be here, I got

suspended by the French companies. They said I was a Parisian, I

should be ashamed. Have they let you back in? I still have my

passport. You can hold on with that. And your love of food. How do you

fancy �1500 to take on someone in your business? The Government is

handing that out to get companies to hire an apprentice. As it is

National Apprentice Week this is something you may hear a lot about.

Julie, your apprenticeship scheme in your business. You run a

vigorous one. You said you have a large number of apprentices there.

When you look at other companies and you see they don't have an

apprentice scheme, do you think they are just going to take all my

talented people once I have spent all this money getting them up to

speed? Yes, that is definitely possible that it can happen. Once I

feel, once you have actually invested in an apprentice, you have

given the values that they usually stay with you. They stay with the

company. They advertise the company. They are great ambassadors. If they

do go elsewhere, then at least I'm giving something to a very

specialised industry as mine. need people with specialised skills.

Definitely. It is not trying to diminish your contribution, but in

your business's self-interest? I cannot get one from a school or

university. I have to get them and train in them. I have to invest in

the person. It is like gambling. You invest in the person. You hope

they come out the other end and they usually do. They come out with

a great knowledge of if industry. �1500 is neither here nor there?

The amount of red tape to get it, for me, that's not worth it. I am

investing for the company and future. You are trying to get young

women into your business. Yes. I'm actually doing an apprenticeship

scheme myself. I wanted to know why it had done so well for my company.

I actually decided to do it myself. I know why, because they know they

are valued. I would like my first woman apprentice. I really would.

As yet still haven't got one? still have not found her. What will

fix it? Stephen is on the case. We'll get you one. You have done a

lot over the last year about looking for signs of companies that

take this seriously and give youngsters a chance. Julie's

company is a great example. There are apprenticeships out there and

companies hiring that cannot find people. There are vacancies there.

It's about getting people and letting people know there are

vacancies, how these schemes are. We went out on the road last year,

talked about it. It is getting through. What do we do with

companies who don't spend the money? We publicise the fact they

don't do it. It is all about Twitter. This message gets out

quickly. I presume after this programme someone will ask how they

can get on it? SMEs need help. I am on the internet. We drilled a hole

in the wall in elephant tank in Twycross, so he was becoming lazy.

They made him stretch through a hole, so it made him exercise his

trunk. We made him lane up. When they came to you -- lean up. When

they came to you, did you think they were pulling your leg? They

didn't think it could be possible. We told them it could be. They

wanted a large hole, which was no problem. We drilled it in one hole

and actually took the core away. Made it clean. There was no noise,

no mess. The elephant had a baby elephant. The elephants were there

when you did the work? They were actually very inquisitive about

what we were doing. They were trying to keep them back. They were

very inquisitive. When we talk about innovation in business, that

is probably the best I have heard for a long time. Walls may have

ears, but businesses now have eyes. Some are resorting to the latest

technology to keep one eye on what you're up to when you're shopping.

Victoria Fritz has her eye on a good story. Do you ever get the

feeling you're being watched? Technology like this is turning

businesses into super sleuths. have we got here? We have two

lenses. One is the field of vision lens. That is recording everything

in front of you. The other lens here, this small box s a camera

effectively picking up your eye. We are merging the two bits of

information, which allows us to work out exactly where your eye,

what you are looking at, whether it will end up with a crosshair on the

video. That is where you are processing. Where your eye is

looking. Eye-tracking was developed by an organisation called Kinetic.

They looked at ways that pilots could control armament when in

fighting situations. These days everyone from

supermarkets to air traffic controllers is using eye tracking

to work out what grabs our attention. We have instances where

one of the major drink manufacturers uses this technology

to work out what was working in the promotional market in pubs and bars

and restaurants. What came out of it was a lot of money they were

spending on promotional activity was being wasted. As a result of

the study we ran they cut huge amounts out of their budget, with

no concern of a decrease in sales. Consumer research is dwelling to

predict our thoughts. The area -- looking to predict our thoughts.

There is the amygdala and the putamen. The putamen helps us form

habits. Scanning these areas, allows researchers to test out new

products before they come to market. We know from research about 80% of

the products that come to market fail in their first year. It is

vital that the company has the correct information. By tapping

into the emotional desires of consumers we can help the companies

design products which will be success until the marketplace and

the consumers will want to buy. Accurately predicting our behave

wror is the holy -- behaviour is The Holy Grail for businesses.

look for adverts which grab attention and also adverts that

stay in the memory. Obviously if consumers don't remember the add

they will not remember the product. Neuromarketing is very much an art

than an exact science. One thing is for certain, it's not just the

scientists that are now in the business of how we manage our minds.

Next week, it's new dogs with new tricks for old businesses. We have