BUSINESS METHODS

Dominion, Volume 8, Issue 2420, 27 March 1915, Page 15

BUSINESS METHODS

ROOM FOE IMPROVEMENT

BAD MANNERS AND LOOSE MANAGEMENT

THE FREIGHT QUESTION

The London representative of an oldestablished New Zealand mercantile • house in discussing the situation arising out of the war and business methods generally makes 'some .interesting observations which are deserving of more than passing attention. : His letter is dated London,' January, 1915 ; London, January, 1915. In continuance of our remarks of an earlier date (he says), we will attempt to examine in greater detail some of the points that seem worthy of attention if we are to> successfully hold our place in the world's trade. In making' these remarks it is profitable to carry our minds back to the period of the.previous great, European War— the Franco-German conflict of 1870. Since then much water has flowed under the bridge, and the commercial situation has completely changed. In .Germany: there has been witnessed, an industrial expansion, followed by a development in the United States' of ex- 1 inordinary vigour, followed by development in Japan, which has already placed its imprint on trade in the East, and which -will yet further affect .the trading conditions in that area. It is questionable . whether we as a. nation have really grasped the import of these movements, and if so, whether ive have not failed to adjust ourselves to the new conditions thus created. BUSINESS MANAGEMENT. / One outcome of .'the war of 1870 was > wave of great commercial activity for (Jreat Britain. Works were congested, profits were abnormally good, wages ffere high. Unforeseen consequences /lowed; from . these circumstances. ■ Manufacturers . secured. more orders than they could execute /without ex- ] cessive delay and they adopted the fool- i jsh that they conferred a fav-j our on their customers by supplying the goods .they manufactured and instead' of preparing in those times of abnormal prosperity for the lean years likely to follow they rested content with' the prosperity of. the moment, neglected the proper oversight .of their business, habituated themselves and their families to a standard of living that reflection would have told them normal, trade conditions would not justify, and so when the lean days did come they had established a , standard of living: they could not support, and their children being untrained to take their places, there came to many up'to then prosperous houses, an inevitable shipwreck. The same : situation arose ' amongst: the merchants, commission houses, and selling agents, and those who can carry their memory back to that period will - recall a long, list of names of men then prosperous who have disappeared by the operation, of forces that they were too indolent to observe.and prepare tomeet. ■ Another portent '- with far-reaching - consequences-was the Public Elementary Education Act, which became operative in _ the same_ year as ' the war of 1870, bringing as it did in a few short years a host of young' people, into the ' 'backcoated" ranks, eager: for situations, even though at wages below those that could be eanied if they had been content, to follow their fathers in industrial employments. This led .■ to un-looked-for results: those ; seeking en-

trance to the ranks of the black-coated employments were the most ambitious of their class, however misguided their ambition may have been, and those who remained as workmen were the least ambitious. and the least capable of becoming good tradesmen and mechanics, and the decay in our workmanship may be in a large • degree traced to this cause.

Little was .done either by manufacturers or merchants to improve or correct .these tendencies.. They sought tn support their' shrinking trade by the payment of low wages. The times were favourable to them; labour of all types was abundant, but they entirely failed to grasp that cheap labour was no ade--quate ..substitute for efficient- work, and with these causes operative, _ coupled with the decay of apprenticeship, there was a serious decay m tlie .efficiency of British trading. - As time passed- the forces of competition forced us to awake , from our dream of self-sufficiency, and stir ourselves to face with some success the new. forces that were being one after the other, arrayed against us, but we have far. to go before we can. regard the situation with any degree of confidence. Let us examine some of our weak spots. COOD MANNERS. Although we give! to our people a free education, we have -not thought it needful to include the teaching (of manners in. the curriculum,' or yet to provide j teachers' competent to teaqh them if they were.. A very ancient educational establishment' in England hag for its motto "Manners maketh man," and perhaps no,, single thing contributes more to creating a:connection and preserving it-than an ever-patient courtesy,' but it is less and less met with. If to a knowledge of his work a man brings not only j efficiency, but pleasant manners, northing can retard his . progress; if he brings the former and not the latter half his'power is; lost. ■ The manners of our big London stores are deplorable. Oftentimes attendants may be seen gossiping whilst a customer is waiting. .Too often tho customer is put off with something' different to what he wants to save the attendant the trouble of finding , the right thing, with the consequence that the customer leaves . vowing to ' never again darken the doors of that establishment, but go into' any one of the higher class shops of Bond Street or Regent "Street and mark the. difference— i a polite and_ immediate attention, not in the. least , differing, whether you- are. a ! large or small buyer, or whether you become-a, buyer at all. The reason is not far to. seek. One pays for good service, and the other does not, ana customers, at first casual, become regular ones, because''they like , going to places where they are well received. The influence of manners is very far reaching. Go into the manufacturing districts of Great Britain, and note the vast difference between the reception at different places. Not infrequently, on presenting your, card, you will be taken possession of by an uncouth lout, and' something "of this" sort happens. "Is Mr. -— in?" , "What do. you want?" Mildly suggesting' that if your card is presented to Mr. he will no doubt see you, "Where's the governor?"

shouts this » well-bred reception clerk to another equally ■uncouth, and. gets reply, "Don't know; about the works somewhere." And it is suggested to you to wait until he returns, which may be in five minutes, or half an hour, or not at all 1 Now these two louts are not to blame: they know no bettor and nobody has been at tho trouble to teach them. The man to blame is tho employer in a business where such an experience is possible. Still, it is common enough; yet these employers wonder why their connection falls off! COURTESY COUNTS. - This type of experience is, unfortunately, all too common and extends to our public offices, the staffs of which appear to think the public are their - servants instead of their masters. These public officers still subscribe themselves in correspondence as "Your obedient servant," but fail to grasp that this should express a truth —not a fiction. This discourteous attitude is ,not confined to Groat Britain, but 'finds its counterpart in British Dominions. The first time the writer landed in Australasia, having occasion to call on an important firm in relation to matters of import to them, he was ultimately re-' ceived by the heads of the firm, who, whilst remaining seated, refrained from offering him a seat. At another centre he presented a letter of introduction, to be told by a member of the office staff, "Expect you will find him in his room"; "him" being the head of the firm! Again, being asked by the head of the branch of a business to call on the principal of the head office in another colony, he did so as a matter of courtesy: after being kept waiting for a- considerable time a message .was sent by a youth that "Mr. was busy; you had better call again." The late Mr. Chamberlain, in one of his speeches, used the expression: "Who sups with the devil must have a long spoon." The writer was tempted into no such impolite expression, but if the authors of these very uncouth receptions had any conception of their ultimate effects they would bo not a little chagrined, for such lack of courtesy has far-reaching consequences.

The same brusque attitude is found at hotels: local residents do not meet with it, but "the stranger within the gates" does, and abundantly so. This seems a great pity. The Australasian colonies have very excellent tourist departments, and make every effort to encourage tourists, and 1 the excellent steamer service from Europe makes a visit easy, and the sport to be met with attractive and the scenery interesting, but the effort largely fails for the simple reason that the type of traveller who has| time and means to go so far alield is in easy financial circumstances, and, accustomed to the comforts and attentions he meets with in Europe, expects ■ them elsewhere, and is prepared to pay for them, but does not get them.' Each such visitor, if pleased ;with his experiences, would be the best form of 'advertisement but the opportunity is neglected and the volume of visitors is restricted, and the country is 'deprived of the financial and other advantages that might otherwise accrue.. Australasian residents will perhaps wax indignant at this presentment; the truth is often unpalatable. No doubt the way is made easy and pleasant for visitors who have important business connections, or who are the bearers of important introductions, but these remarks apply to neither of these, but to that numerous group who fall without it. WHAT IS NEEDED. Let lis go back now and set forth what seems needful to procure satisfactory issues, and examine what elementary steps are needful to "capture German trade" or any ether. First, it is needful to bear in mind' that good manners do not cost anything and are not incompatible with the ex-

treme teachings of democracy. Therefore, the head of every business should accustom himself at all points to practise that virtue: tho tone of the whole staff will follow the example of the head, and a most favourable impression will be formed with effects more farreaching than many, suppose. There should be a prosuinption that any caller has something to say; maybe it will not bo of immediate interest, or even of any interest at all, yet the interchange of views as between one man and another cannot fail to yield to & man of .receptive mind some educative advantage, and so it is very desirable that the head of a business should not so immerse himself in detail as to be unable to take advantage of these fruitful channels of knowledge. Even if other engagements give opportunity for but the briefest interviews the impression of a courteous reception is' not lost, and the path is left open for a renewal if any advantage or. benefit is to he perceived. This cannot be accomplished without care; the junior should be selected for his good manners and attractive address, which should go hand in hand with a clean and neat appearance.; Experience will soon teach him whether his employer can at; the time be-dis-turbed; if not, he can politely say so ond suggest another call, or refer to one of the seniors who would see him. The writer travelling in Germany and in America has been much struck with the attention given to these points: equally so with the efficiency of the travellers they send cut. There is an alertness, a mastery of facts, which is not usually mot with amongst our own pedple, but. too often they owe their position to the fact that they are somebody's nephew, or tho son of some friend—all very well if they bring to their work energy and intelligence; if otherwise, they are but the'spokes of a charitable wheel, and no business can look for successful issues if it is run as a charitable institution; the wheel will go 1 round, but will not progress TRAININC THE YOUNGER CENER- . ATION. Again, the young man of to-day is the old man of to-morrow, and little good can come to them if they aro not at an early stage habituated to habits of responsibility and decision. Age alone will bring ripe experience, but if that experience is fortified by the fresh outlook and vigour, of younger minds much advantage may be hoped for ;, without it all businesses tend to move in a rut, to live in a past tradition, the. advantage of which has been removed by changed ciicumstances. But this younger generation must have its opportunities to acquire a practical understanding of the matters tbey have to deal with, or they will be of little service now or hereafter; if as'buyers they lack, a'general knowledge of tho articles they have to buy how can it .be expected that they can bring to the work the intelligence needful. for successful issues. This can only be acquired by visits to works and personal observation. 'So equipped' they will Quickly grasp whether -the, arguments of sellers have any validity or whether they are simply, a tax on their credulity. Further, they must have a fair general grasp of economic problems, which can be acquired by reading and applying general principles to their particular interests, to which must be added a general kuowledge of the political movements of the time, which qualify in no small degree the economic conditions of to-morrow. If there had been anv grasp of the profound changes that were foreshadowed bv the unification of Germany after 1870 how: different would: it_all lie! Now none of these things is difficult of attainment. All are not equallv uifted: the old Napoleonic maxim holds good— "The tools to those who can usethem," to such the opportunity should be given. No Field-Marshal has won his baton without mistakes; the merit is in perceiving them and thenceforth avoiding them, and .so in every career-mistakes there will be; none need be vital and may prove the stepping-stone to a brilliant success. ■ ; ' '■

WHAT IS BEING DONE. , The Chambers of Commerce are moving actively in the matter of technical education: the idea is excellent, but conceived on wrong lines. Members of the Chambers are boing continually dunned to subscribe funds to provide tins education. In an earlier time the superior artisan or tradesman was concerned to make a sacrifice to apprentice his children to suitable trades. 'J-hey therefore came of a good steady self-respecting stock, and were placed in a position to rise to journeymen and masters and be capable men in their craft, and thus provide a flow of efficient workmen and masters. This has ceased, and the result is shown in the workmanship of to-day. Now the country gives a free education, provides free meals, and other additions. The parents released from any legal obligation in relation to their offspring recognise no moral call and do nothing, and then tho more thrifty are called upon, having already paid for the children's education, to provide them yet further with a technical training. This continuod sap on individual effort, and sacrifice, is wholly wrong. The needful fees are small; the hours are so arranged as not to interfere with employment. Nor is the technical training of much value unless to it is added knowledge of the world, good address, and sound commercial view's, and from this lower class type these things will not be got except in a few exceptional cases. These cases will by their own efforts and industry attain the ends they seek. OFFICE MANAGEMENT AND OVERSEAS BUYERS. Office management is yet another factor that calls for thought and attention. Tho good workman needs good tools. He needs a light and airy oliico so that his physical powers and mental energy shall not be impaired: in an ill-lighted, ill-vonti:ated, and overcrowded office good work is well nigh impossible, and for those whose duties call lor careful thought and consideration somo degree of quiet and retirement is essential; yet little consideration is given to these thiugs. German and American offices in many cases are far in advance of British in these respects, and they win the reward. There is also an ever present danger that initiative is paralysed by a hidebound insistence of system. System is excellent in itself, end within limits essential, but there is an ever present danger that system becomes the end instead of a means to an end, and in its too slavish insistence it is often overlooked that what is good may yet. be better. All the things hero dealt with are elementary, but in the practical application of them as means to ends they seem to be well worth study, and provide a wide scope for improvement : they are foundations of the structure of business and essential to it.

Th&iio who have to entrust to oversea buyers display an! extraordinary ■ indifference 1 to the channels they-entrust such services to. Many are capable for the work, men of probity, energy, and capacity, and bring to the service of their clients the same care a'sthoagh the_interests ,were their own: others again lack in one of other of these essentials, some in all, of them, and since-a tiling well bought is half sold, it is extraordinary how lightly a decision on so important'a point as this selection is treated. Oftentimes, a buying agent is deprived of an account because some total stranger has offered to do the work for a fractionally lower remuneration: it may bo the new channel has no efficient staff, no effective methods, and is • not favourably known in the trade—all essential factors, and it may' be that in the conduct of the buying, the cost is so sweated that no effective result can be hoped for. - . • ■ FREICHT CONDITIONS. We have already dealt with the general conditions with, which a mer-

chant is confronted if he has goods for shipment. Let us go further. We will first examine the rates of freight current and demanded. The advances (quoted) represent increases in freight rates in round figures from 50 to 80 per cent. By those interested in sustaining these high charges on transit we shall be mot with the usual explanations put forward by all powerful combines —increased labour bills, increased port charges, increased expenses by reason of less effective labour—all factors which no doubt in a degree contribute in some measure to costs of transit. But even so, the explanation leaves us cold. Assertions, are easy to make, not easy to refute, but Common sense makes it very clear that the advances in rates of freight have travelled faster than the increase of charges. Moreover, it must not be overlooked that in the course of years wharf accommodation at Dominion ports has been greatly improved, making for more speedy handling, and a large typo _ of steamer is employed, which certainly makes for economy, nor must it be overlooked that Dominion exports have greatly expanded, and so given to the trip out and home a fuller cargo.

Further, the rates of freight are scheduled in a way that is unsatisfactory in many inspects, and they could be improved without even casting any extra .charge on the snip, but any suggestion 011 the part of the merchant is quietly shelved, however much it may appeal to common sense and convenience, and the merchant is made to feel that it is not for him to intrude on the holy mysteries of the shipping combinations. Is it thus we are to set forth in a crusade to "capture German trade" ? A tame acceptance of the position appears to be the best method we could devise that Germany should capture oura.