TPO Network Awards 2010

Best TPO from a Developed Country

UK Trade & Investment (UKTI)

Interview with UK Trade & Investment Deputy Chief Executive Susan Haird

UK Trade & Investment (UKTI) helps companies do business in overseas markets and brings high-quality investments into the UK. Its Gateway to Global Growth Programme (G3) supports UK SMEs that are already exporting in growing their businesses by entering new and more challenging markets.

The G3 programme has a specific target group – innovative SMEs with two to 10 years of export experience. These companies needed a new approach to export support that recognized the changes in the international business environment that have occurred over the last 10 years.

G3 offers a single route to a range of guidance and support services to take these companies to a higher level of international success. It uses private and public sector consultants to deliver support, guidance, specialist training and action planning. Solutions are often complex and require specialist information and skills. Help to exporting SMEs from G3 is always tailored to the specific needs of the individual company.

A real success for UKTI’s clients

UKTI’s independent evaluation of G3 shows that the programme has been highly successful. Performance & Impact Monitoring Surveys (PIMS) found that 1,200 SMEs participated in G3 in the programmes first 12 months. Sixty-seven percent of these companies improved their business performance, and 80% increased productivity and competitiveness.

Quality and satisfaction ratings for G3 are at 88% and 81%, respectively. In its first year, G3 is already amongst UKTI’s best performing services. At a time when overseas business has grown ever more competitive, G3 has been a real success for UKTI’s clients.

Interview with UK Trade & Investment Deputy Chief Executive Susan Haird

Measuring impact is all-important

‘For UKTI, measuring impact is all-important. This helps us identify gaps in services for experienced SME exporters who could achieve benefits by expanding into new markets – a key tipping point for exporters. We also found that a service was needed to help innovative SMEs grow their businesses.” UKTI Deputy Chief Executive Susan Haird

 

What challenges did your organization face before you made the changes in processes that led to you winning the Award?

The challenge was to meet the needs of companies with some export experience that were ready to grow their export business. We were good at dealing with experienced exporters that did not need intensive relationship management. The gap was with companies with little experience and that wanted to expand into challenging markets such as China and India where they faced issues such as cultural challenges, intellectual property rights’ (IPR) obstacles, and so on.

How did you identify what changes you had to make?

We identified this gap in the market through evaluation. We implemented a system for in-depth account management for a group of new customers for 18 months, through which we identified needs and markets that might be most appropriate.

We signposted this to our services overseas, but also turned to private sector advisors in the UK to get advice, for example, on issues such as IPR.

What challenges did your organization face when implementing the changes?

Once we identified potential customers, a big challenge in filling the gap was putting together a package to enable new customers to access services. These services had to be relevant to the private sector and designed to help them to increase their capacity to export into new and challenging markets.

What have the changes accomplished so far? Results?

Last year we supported 25,000 companies and created £5 billion of additional profits for our customers and £35 billion of additional exports, a ratio of £19 to every £1 the UK spends on trade promotion.

We measure our impact in a rigorous way, using external contractors. We interview 15% of our clients six to eight months after we deliver the service and we return to a smaller number of clients one year later. Consultants ask targeted questions in a 20 minute interview focusing on the quality of and satisfaction with the service, if it helped them, if it gave them access to contacts, did we help to build their reputation, did they change their business processes, did they do more R&D, what additional profit they expect to make and whether we helped to increase competiveness.

Our Gateway to Global Growth Programme (G3) targeted innovative companies with two to ten years of export experience that needed a new approach to export support that recognized the changes in the international business environment. G3 offers a trajectory of guidance and support services designed to take these companies to a higher level of international success. Evaluation showed that 1,200 SMEs participated in the first 12 months – 67% improved their business performance and 80% increased productivity and competitiveness. Quality and satisfaction ratings for G3 are 88% and 81% respectively.

What are the most innovative features of the changes you have implemented?

Implementing in-depth account management for a new group of customers and drawing on the private sector for supporting these customers were innovative activities for UKTI.

In your view, what are the major obstacles to a TPO showing value for money to its stakeholders – both clients and public authorities?

TPOs face many challenges. Every government is demanding that TPOs show value for money. In the US and Europe, growth rates are low and the pace of global demand is also slow. The big opportunities are in the emerging markets, but the difficulties faced by companies and TPOs are larger than in other markets. For example, market access barriers can work against setting up a business. To be competitive when global demand is restrained by the recession is a huge challenge. TPOs must promote growing markets, which will help to demonstrate value for money. They must also measure what they do.

Is the model you used replicable by other TPOs?

Yes, absolutely. We’d be happy to make our evaluation model available to any TPO.

How will you use winning the Award to promote UKTI’s image?

We are celebrating with our staff. We have informed all of our stakeholders. We’re using the information as an e-footer and will keep it for the next two years. We are featuring the win in our newsletter and in other promotional materials. It is our vision to be the best – that is easier to prove if you have won an award.