Jersey businesses worried about growth and margins - survey

Thursday 25 February 2016

Businesses in Jersey seem more concerned about productivity and pressure on margins than they are about the future of the finance industry, or the threat of off-island competition, according to a recent survey.

The survey, by change consultants, Greenlight, found pressure on margins, productivity, and the need to get more for less, were the most important issues overall for business people in the Island.

Threat of competition by agile, tech-driven start ups was the second major concern for Jersey businesses, followed by management of risk.

Greenlight surveyed 140 people from Jersey’s business community to find out what issues mattered to their business in 2016. The independent business transformation specialists asked people to rank 10 issues in order of importance.

23% of people selected business growth as the single most important issue for their business, while 20% of people considered management of risk to be the most important issue.

The future of the finance industry was the least important issue for the majority of people surveyed – showing that business people in Jersey are confident about the future of the finance industry - while the single lowest ranked issue was threat of competition from off-island, with 18% of people putting this in 10^th position.

Eliot Lincoln, Chief Consulting Officer, Greenlight, said: “The survey shows businesses in Jersey are most concerned about issues they can tackle through internal change. Companies are feeling the impact of disruptors – sometimes through the form of lower cost start ups, sometimes through the impact of new technology.

“A lot of the work Greenlight does is about helping companies drive growth, improve profitability, and unlock value. Digital change is one of the most important areas at the moment, with increasing numbers of companies wanting to know how they can ‘Uber’ their business. Technology is both a threat and a friend, depending how a company manages it.”

Since launching in Jersey in 2008, Greenlight has helped over 70 businesses with nearly 200 separate change projects. The firm offers a range of services, from business analysis, to programme, and project management, designed to address problems businesses of today have to overcome to be the businesses of tomorrow.

Mr Lincoln said: “Disruptive Innovation is taking place around the world.  AirBnB is now the world's largest hotelier with 23 million nights booked in Q3 2015 alone.  Spotify has helped to render the CD market all but obsolete and Uber is only six years old and is worth $70bn, more than Ford or GM or Honda.  How soon will we see the banks or the wealth management industry receive the same attention from a successful disruptive innovator?

“Businesses can become more productive though change and can become more successful through transformation. Greenlight is about analysing the issues your business faces, and using our expertise to help you find better ways of doing business.”