So diverse, so professional

David Bowles pays tribute to the region's totally transformed service sector.

I have recently had the privilege of helping judge the finalists in Service Network's annual Culture for Success awards - a celebration of company culture as a major driver of commercial success.

What struck my fellow judges and me is how greatly the regional service sector has changed over the last 20 years or so. The diversity of business models servicing regional, national and indeed international markets is extraordinary, as is the very professional management and often inspirational leadership we witnessed.

Thirty years ago it would have been difficult to measure the service sector here in the North East and few sought to pursue a career in a region dominated by manufacturing, the decline of which is perhaps a subject for another occasion.

Here and now we have some of the biggest law firms in the country that employ hundreds of graduates from regional universities. The telecommunications sector provides jobs for thousands of people servicing customers for the UK's largest mobile operators.

We can also boast a number of economic, consumer and industrial research companies that carry out world class work for international customers. And our advertising, marketing and events companies all operate nationally and internationally, utilising leading edge digital technology.

In the Tees Valley, the region hosts a globally significant cluster of engineering service firms that work internationally on major projects. International banking, accounting, outsourced payroll and human resources are all represented. The list is long, the customer base they serve impressive.

The region's business services sector operates in a business environment globally competitive. Success is hard won and hard to sustain. Customers demand excellence and quickly switch if they don't get it. So it is impressive that the regional service sector is growing, by 5% in the last quarter, while other sectors are in steep decline. I think the Culture for Success awards provide insight into why this is so.

In fierce competition, differentiation is crucial, and I am reassured that service companies in the North East understand this better than most. They have focused their business models on service excellence backed up by outstanding company cultures that lead to success by meeting all of their customers' needs and then some.

The power of an inspiring culture is awesome and uplifting. For example, who would believe that cultural change could turn a company's customer service from worst to best in class? Well, it has! And I have seen the evidence.

We often hear of the "clock watching" syndrome and many customers are frustrated by no answer when we call before or after hours. By comparison, I met a managing director whose staff are so committed to the success of the business that they will always willingly go the extra mile - often outside the 9 to 5 band - to sort out customers' problems.

These are businesses that are underpinned by cultures which empower people to act on initiative, put customer service first always, feedback customer opinion to drive business policy, and have fun while they are doing it.

We must be very concerned about the decline in our region's manufacturing base which is so important for the North East. But I am truly inspired by the service sector which has become such an important element of the economy, a very important employer, and a creator of wealth and investment. So let's, on the occasion of a new Top 200 List, celebrate its success.

David Bowles is chairman of Entrust