Troubleshooting: Expert advice for small business

The pending disappearance of ACT, the software company, into the embrace of rival Misys calls to mind its previous existence as Apricot Computers - the PC company which failed in its brave attempt to become a British Apple.

The folly of that ambition was pointed out forcefully by Sir John Harvey-Jones when Apricot featured in the BBC's first Troubleshooter series. Very reluctant to take the great man's advice, chairman Roger Foster eventually did as bidden and sold the PC side to Japan. The remainder prospered enough to fetch £212 million.

Yet the myth persists that Sir John's TV troubleshooting somehow failed: that for all his experience and knowledge, ICI's former chairman didn't make the right diagnoses and therefore couldn't suggest the right cures. Skills mastered in big business didn't transfer easily to smaller situations - so there.

This plain untruth was encouraged by the obvious indignation of some of those whose troubles were shot. Some chinaware brothers resented being chided for their low investment in design: the Morgan family was angered by the exposure of the inefficient production and underpricing that helped explain the huge waiting list for their beloved cars.

Both companies, in fact, took steps to remedy some of the more obvious defects revealed by Harvey-Jones. Like Apricot, they had volunteered for the victim role. But many companies which call for help actually expect congratulation, coupled with some push-button remedy that will magic away whatever prompted the SOS.

Life is not like that. Turning to an expert outsider for assistance makes sense, though, even when the business is flourishing. The expertise adds a new dimension, and so does the detached, objective view. Unlike you, the outsider doesn't have a vested interest in the status quo.

However, a good troubleshooter will uncover not only the problems that are apparent to the management, but others which are either unsuspected or tucked out of sight. The remedies will probably go far beyond the actual problem presented, which is often only a symptom of a condition that requires sweeping change.

That's the catch. Major change in things as they are (a) means upheaval and a degree of risk, which always accompanies change (b) implies criticism of the past and present management of the business. Objections on either count are purely emotional. That makes them stronger, but it doesn't make them right.

If the world and market around you are changing, standing pat itself involves change - and possibly fatal change - in your relative position. Very few businesses can ignore change as blithely as Morgan, whose cars attract this comment by What Car: 'Queue here for delivery in next century. Morgans make no apologies for taking motoring back 50 years.'

Mind you, those prices seem to have advanced into modern times. A Morgan Plus Four costs roughly the same as a Honda Prelude, which is notably faster and comes equipped with all manner of goodies that Morgans eschew. But nobody would queue for a Prelude - it just isn't a Morgan.

Businesses which are many miles removed from the Morgan cachet still cherish the belief that, like Morgan, they have some special property that makes them 'different'. It's true: every business, every industry, and every market differs from every other. But the similarities are vitally important.

That's where troubleshooters earn their reward and should earn the victim's respect. Using their wider experience, they can spot the defects that disfigure all businesses and all strategies, suggest possible cures and lay bare the emotional blockages that have prevented earlier therapy.

The bigger the blockage, the greater the temptation to seek comfort in denial, and to shoot the troubleshooter for bearing the bad news. But every business needs a Cassandra, the fearless critic who challenges existing policies and actions - and it's rarely easy for these to function inside the firm.

Significantly, Harvey-Jones was just such a critic inside ICI. His heresies helped in his promotion when the company lurched into loss, and radical reforms were clearly required. Firms which want their troubles shot usually only seek help, like ICI, when the wolf is already snarling at the door. The moral is clear. Get your troubleshooting in early, and there shouldn't be any trouble to shoot.