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Measuring Success
 Value everything your business has to offer
What's the Point?  Living Proof  How to do it
 LINDEN FOODS

Linden foods is a beef producing company based at two sites in Northern Ireland. On average it processes more than 80,000 cattle and 100,000 sheep a year for export to supermarkets and burger chains. Even with a strong customer base, the company faces pressure in a competitive industry. It turned to the Small Business Service Benchmarking Index to identify strengths and weaknesses beyond its bottom line.

The process highlighted its high staff turnover and absenteeism rates and consultation with staff revealed communication problems. The company invested in new communication systems, new sales and production processes, and the use of a system of scorecards that helped to give staff measurable objectives against which they could see progress being made.

THE RESULTS

Following these developments absenteeism dropped from 12% to less than 6% - and has even dipped below 2% in some weeks. Staff turnover rates among longer-serving employees fell almost at once by 11% with further improvements anticipated. Early estimates suggest that overall operating costs have already been cut by 20%.

 Who else is making a point?

Many successful companies throughout the UK understand the business benefits that can be gained by valuing non-financial assets.

  • Risk & Policy Analysts was established in 1990 in as an independent consultancy providing expert advice in areas such as environmental economics, policy studies and hazard and risk assessment. In 2001, the company developed nearly 30 indicators to measure its performance across a range of environmental, social and economic impacts and issues.

The results: Embarking on sustainability reporting was a challenge for a small company with only 12 employees, but the process has undeniably brought benefits. These range from cost savings and improved energy efficiency through to high levels of staff satisfaction. Clients also appreciate that this is a company that 'practices what preaches' - and both turnover and profit have increased. The company was awarded a commendation for small business sustainability reporting for its first report in 2001 by the Association of Chartered and Certified Accountants.

  • Based in St Leonard's on Sea, Stamco Timber runs a community programme to promote its business and develop staff skills. It has used the CommunityMark guidelines to measure progress. Staff decide what activities the company supports, from donating materials to giving time to local schools, and complete evaluations on the success of each project.

The results: Since increasing its profile in community involvement over the last two years staff turnover has dropped from over 20% to under 5%. Speculative applications to the company have doubled and sales have increased by 51% over five years and by 9% in the last year. Stamco Timber has also been awarded the CommunityMark by Business in the Community.

 Why is this important?
  • The financial community sees a clear link between non-financial risks and shareholder value. 89% of investor relations officers agree that intangible assets contribute to shareholder value. Source: Investing in Responsible Business, The 2003 survey of European Fund Managers, Financial Analysts and Investor Relations Officers, CSR Europe, 2003
  • For some 79% of fund managers and analysts, the management of social and environmental risks has a positive impact on a company's market value in the long term. Source: as above
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