1. F
igures show that 20%
of new businesses fold
within their first year
and 50% within their first
three years (Department
of Trade and Industry,
2005). The outlook for new businesses
in 2012 is bleaker still, as the effects of
the recession rumble on and the path
to success becomes steeper. The DTI’s
research showed that businesses were
most vulnerable to failure during the
early years of trading and the same can
be said today. But if SMEs and micro-
businesses are to survive, especially
during the downturn, then quality has a
major role to play.
A glance through recent newspaper
headlines reveals a gloomy forecast:
“Small business expects to bear brunt
of VAT rise” (The Independent); “Loan
costs for small businesses increase”
(Daily Telegraph); “Small firms get
raw deal, says Cameron” (The Times).
Despite a government drive to reduce
red tape, the banks’ reluctance to lend
to small firms is still providing cause
for concern and government cuts are
depleting the number of contracts
available. However, some SMEs are
booming and many of those credit their
success to quality.
In February, the Financial Times
listed three tips for building a fast-
growth company: have the ambition to
grow, be innovative and find a gap in
the market. Innovation is certainly one
way to gain an edge on the competition
and, by their very nature, SMEs have
the flexibility to change their systems
and processes in a shorter timeframe
than larger organizations. That could
mean anything from finding a better
way of training and organizing the
workforce, to introducing a helpful
new invention.
Walker Technical Resources (WTR)
is one example of an SME which
has put quality at the centre of its
operations and the results are clear to
see. Since starting out in Aberdeen in
1989, WTR has become the first oil and
gas service company to implement a
recognized integrated management
30 | december 2011 | qw www.thecqi.org
Robert Gibson finds an
SME success story atWalker
Technical Resources and
investigates how investing
in quality can help smaller
businesses to grow
Mighty oaks
from little
acorns grow
SYSTEMS
SMEs and micro-businesses

2. www.thecqi.org qw | December 2011 | 31

3. SYSTEMS
SMEs and micro businesses
32 | DECEMBER 2011 | qw www.thecqi.org
system. WTR is now the world leader
in composite technology for the oil and
gas, petrochemical, refinery and power
industries. It specializes in producing
pipework and structures using its
own brand, Technowrap, and there is
a strong focus on health and safety.
Over the last 22 years, the business has
expanded its operations throughout the
world, via a network of global partners
in the energy sector, and prides itself
on high-quality standards. Its composite
repairs are Lloyds Register type
approved and fully qualified to ISO/TS
24817, undergoing rigorous testing at
a range of temperatures and pressures.
Again, innovation has played a part
and the importance of research and
development is high on the agenda.
Despite only employing around 45
members of staff, WTR recorded a
£6m turnover for 2010/2011 – a 50%
increase on the previous financial year.
WTR CEO, Willie Rennie, believes that
the company owes its growth to the
quality methods which it has embraced:
“Quality is the cornerstone of our
business model and growth plans.
It is the way we do our business and
our performance feedback from clients
is testament to the robustness of our
quality management processes.
“We are selling solutions to the
new challenges facing our clients, so
investing in our own quality business
management system is vital to the
success of the business.
“In terms of the quality approach
and techniques, as an SME,
WTR developed a robust quality
management system, which covered all
aspects of ISO 9001, ISO 14001 and ISO
18001. We were able to develop our
processes and systems for “the way
we work” and integrate them into our
computerized systems.
“WTR was never limited to the
domestic marketplace; we focused
our growth strategy on both the UK
and the international markets, bringing
forward new solutions to meet new
client integrity challenges. Now we
constantly update our processes to
reflect the growth of the business and
we recently expanded our service into
the structural strengthening market.”
Willie says the benefits of a quality
Formed in 2005 by Tony Peters and
Barrie Evans, Shades of Comfort
seized an opportunity to provide
outdoor solutions, including
umbrellas and awnings, following the
introduction of the smoking ban in
pubs and restaurants. Since then it
has expanded rapidly and its client
list now includes major organizations
such as Youngs, St Austell Brewery,
Enterprise Inns, Drayton Manor Park,
Whitbread and Costa Coffee.
Putting the focus on quality and
gaining certification to ISO 9001 was
an integral part of its business plan,
giving the organization business
credibility in terms of performance
and efficiency to larger clients. Sales
and marketing director, Tony Peters,
says: “The quality of products
and services has always been
important to Shades of Comfort
and our business growth has been
largely due to recommendation.
It was crucial to back this up by
making sure that the company
itself had systems, processes and
procedures fully documented as
well as developing an ethos of
continual improvement and customer
satisfaction that would be ingrained
in everything we do.
“Obtaining ISO 9001:2008 was
a magnificent achievement for us.
Everyone signed into quality as an
objective for our business, the way
we conduct ourselves and the way
customers view us. I believe that
we are now in a position to survive
the current economic downturn
and are in good stead to be able to
grow when the financial situation
eventually improves.
“We are now well underway
in achieving ISO 14001:2004 – a
commitment we have given to
Whitbread. Recently we were
awarded a three-year contract with
Whitbread and Costa Coffee and I
feel sure this is a reflection of the
close working relationship that has
evolved, providing the best possible
quality and standards now and into
the future.”
Case study
Shades of Comfort

4. www.thecqi.org qw | DECEMBER 2011 | 33
approach have been numerous and
recommends them to other smaller
organizations: “It gives us complete
transparency of our process steps and
how we go from order intake to close
out of a completed job with a client.
This gives both our business, and
more importantly our clients, a very
detailed understanding of why and how
our business is differentiated in the
market place. Additionally, the robust
processes are facilitating our growth
because they are very scalable.”
WTR employed quality professionals
including Hilary Smith-Milne, MCQI
CQP, to prepare an evaluation of its
business model and to assess this
against its competitors’. Upon analysis
of the results, she was tasked with
designing a unique quality business
management model, which delivered
a competitive, leading-edge, quality
product and service.
Hilary says: “The business
experience of chartered quality
professionals has a significant role to
play in the future of UK plc, especially
during the current economic
challenges. We are fundamental for the
growth and development of SMEs.”
Through experience, WTR has
recognized the value of chartered
quality professionals such as Hilary.
Willie says: “We fully support the
objectives of the Chartered Quality
Institute and the benefit of Hilary Smith-
Milne and other chartered quality
professionals, which have taken us on
this journey and the continued progress
we are making. This has played a key
role in the development of the company.
“Our quality business management
approach is also key to bringing
forward new technology, to continue
to grow in these challenging times. It
means that the processes are already
in place, allowing us to focus on growth
and increasing our sales efforts.
“As the market becomes more
competitive, our quality management
approach is a key differentiator to
win work and to continually position
ourselves strongly with our key
customers.”
The rapid growth of WTR is not the
only success story which shows the
effect that quality can have on an SME’s
success; there are many other similar
stories (see case studies). It appears
that quality really can play a major role
in the future success of SMEs around
the world qw
Maurice Phillips is another example
of an SME that owes its success to
quality. The organization can trace
its roots back to the 1930s, when it
supplied linens, textiles and uniforms
to the health service. As the market
changed, the company began to
develop a branded portfolio of
products and by 2002 the company
had formed the Agua brand, which
included a collection of waterproof
upholstery fabrics.
The company identified the need
for a formal quality management
system in order to streamline its
processes and improve business
efficiency. As its portfolio grew, it
chose to implement ISO 9001 to
demonstrate that it had processes
in place to monitor and improve
performance in the purchase and
supply of textile products. The
process of implementing ISO 9001
began in 2008 and by September
that year the business had achieved
its first certification, which was
later extended.
This quality standard bought
Maurice Phillips Contracts new
business opportunities and
increased profits. It credited the
quality approach with enabling it to
simplify its internal processes. For
example, the retrieval of data needed
to follow up customer queries was
made easier and quicker. The result
was a much-improved relationship
with the customers.
Managing director, Suzanne
Ralton, says: “Our staff have
welcomed the implementation
of a consistent and documented
approach and it’s evident that the
management system has added
value to our daily operation.”
Case study
Agua Fabrics
The business
experience of
chartered quality
professionals has
a significant role to
play in the future
of UK plc”