Fear, not profitability, will elevate fleet to the boardroom agenda
Issued December 05 2005 Initiating demand for official certification of company fleets
Outcomes from an industry forum hosted by FMG Support and chaired by former Conservative MP and minister of state for transport, Steven Norris, have revealed that fear of incoming legislation and potential litigation will be the catalyst, which elevates fleet onto boardroom agendas.
Senior representatives from companies including Zurich, Royal Mail and Leasedrive attended the forum at the Four Seasons Hotel, London on 29th November to debate the reality of fleet’s profile within business. This discussion was based on recent independent research, commissioned by FMG Support, which highlighted that over 90% of senior decision-makers in the sector do not recognise how effective fleet management can contribute towards overall business performance improvement (BPI) objectives.
The group established that whilst the commercial value of managing fleet as a corporate asset (rather than a mere running cost) remains unrealised, it is issues related to people - rather than profitability, which are seizing the attention of chief executives. At present, this is driven by fear of corporate manslaughter prosecutions, mass compensation and growing concerns regarding employees’ well being. Therefore, as safety is becoming an agenda point, organisations must fully realise the critical impact that fleet has on this area of corporate governance.
“There is distinct apathy at board level to un-tap the cost savings from effectively managing fleet performance. This is aggravated by the increasingly devolved role of fleet, a profound lack of appreciation for the complexity of its function and a subsequent lack of strategic direction,” commented Ian McKenzie, group business development director, FMG Support.
“However, if companies want to effectively address issues such as safety management and reap the subsequent benefits of legal compliance and increased profitability, every related touch-point to the business must recognise the importance of fleet and how benchmarking fleet against best practice criteria will help to deliver against these initiatives. In the current absence of such frameworks, there is an apparent need for official accreditation to provide organisations with underlying guidance on how fleet performance can boost overall professionalism and accountability.
As a result of these findings, FMG Support is championing the establishment of a working party to endorse best practice within companies that have fleet operations. By engaging with businesses, industry bodies and associated third parties, the group will lobby government to develop and implement a certification system that provides a set of base line criterion so that businesses can improve their performance through fleet.
Ian McKenzie concluded; “Establishing recognised best practice standards within fleet performance will encourage wider understanding of its function, improve credibility and consequently help dissipate businesses’ fears about issues such as safety. Despite fleet working its way into the boardroom through the back door, there is an opportunity to demonstrate how fleet can generate results that don’t just focus on compliance but are intrinsically entwined with core business strategy. By taking this action we can ensure that fleet secures and develops its position at board level.”
To view a full synopsis of the research commissioned by FMG Support, click here.
ENDS
Issued on behalf of FMG Support by Propaganda Public Relations. For further information contact Amanda Lyons or Amie Pascoe. T: 0113 287 0123. F: 0113 287 0111. E: amanda.lyons@propaganda.co.uk
