IoD Scot;and Spring 2013

Scotland

Spring 2013 www.iodscotland.com

Published for members of the Institute of Directors in Scotland

Gleneagles to host Annual Conference

page 5

IoD has the power to connect

Special features:

Government must tackle the growing cyberterror threat page 18

The challenge of leadership page 26

Director of the Year finalists announced page 8

Book your place now at www.iodscotland.com

Scottish

Flood Forum

supporting flood risk communities

You may not be aware but your business could be at risk from flooding or you may already have been a victim of flooding. Statistics show that 60% of SME’s go out of business within a year following a flood incident.

Either way what can you do to prevent flooding or a reoccurrence of flooding?

•

Seek professional help and advice from the Scottish Flood Forum

•

Sign up to the SEPA flood warning scheme

•

Consider what can be done to protect your property

At the Scottish Flood Forum we provide impartial support to all Businesses who have been flooded or are at risk from flooding. We advise on property flood protection and business continuity assessment and offer a wide range of pro-active training and flood protection products to help.

Visit www.scottishfloodforum.org for expert flood protection advice to ensure your business is safe from the disruption flooding can cause

The last words these business owners said as they left their flooded properties were

“We wish we had done something to protect our businesses – it’s too late now”

Call us on 01738 448411 or 0774 770 2299

Chairman’s welcome

IoD has the power to connect A quick look through the events diary highlights the IoD‘s reach and influence, says chairman Ian McKay

What’s the buzz? Tell me what’s a’ happening…

I took a quick look at the IoD Scotland website today to see what was going on. I’m hooked to Google, LinkedIn, Twitter and the other instant, business, social media sites to find out more. In some ways perhaps, knowing what is going on – in your business, your family, your community, the world – is the basic driver of all the social media, and good business too. Or maybe it’s just nosiness.

Early spring is more about giving up on the gym and diets than changing the world but the IoD in Scotland has an interesting offering of events. By the time you read this our executive director, David Watt, will be gearing up to lunch with members in Edinburgh and discussions on the referendum and Scottish independence. It’s the first of one of several such meetings we will be holding throughout the country on this important issue, an engagement characterised by listening rather than shouting. The product of our think-tank involving members of all opinions and none, seasoned by some of Scotland’s leading thinkers, is pretty much there now and IoD will be hitting the trail soon to take that discussion to the branches and wider business world.

It was good to see the publication of two key documents linked to the independence issue: the Scottish Government’s fiscal commission working group proposals for the economy in an independent Scotland and the UK Government’s analysis of Scotland’s place within the UK and how it might change with separation. The data is there for people to see, and to agree or disagree with.

The important thing is that we are beginning to see the politicians behave as we have asked them to from the outset – show us the

data, give us the facts behind your proposals. It is a welcome development.

Elsewhere, we will be holding one of several new workshops for members interested in non-exec work on boards. There has been an enormous growth of interest in becoming involved in non-exec work – something which is good for the boards and for good governance. It is pleasing too that the people interested in moving their career on in this way have turned to the IoD for advice; we are recognised as the bastion for good governance.

Governance is the key to boardroom work and I am delighted to see this surge of interest.

In the end IoD is about people. Two prominent individuals attended IoD events in February: Sir Peter Housden, Permanent Secretary at the Scottish Government, provided the leadership lecture in Inverness for our remarkably active and successful Highlands Branch, while in Glasgow, Colin Robertson the CEO of Alexander Dennis and last year’s Scottish IoD Director of the Year, was the guest speaker at an influencer’s dinner in Glasgow.

Nothing unusual there I suppose: Scotland’s number one civil servant and one of its most successful business people doing something for the principal business organisation. Except there is very little ‘usual’ about it – Housden isn’t the normal public school and Oxbridge civil servant. He was taught in a comprehensive, started life as a teacher and came from local government into the civil service. Robertson hails from the family chip shop in Shotts and was an apprentice engineer at the local Cummings’ factory until someone decided this bright kid could go further. Both offered their wisdom not as products of a factory line of leadership but as graduates of the school of hard-won success and effort – and we are privileged to have them.

No superstars, but an organisation at the centre of public and business life and a group of talented individuals – that will do for a cold spring in a small northern European country.

Contacts & details Executive Director: David Watt iod.scotland@iod.com Web www.iodscotland.com or www.iod.com/scotland

IoD Scotland is the official membership magazine of the Institute of Directors and is published on its behalf by: Chamber Media Services, 4 West Park Road, Bramhall, Stockport, Cheshire SK7 3JX.

Address IoD Scotland: 29 Abercromby Place, Edinburgh EH3 6QE

Advertising sales: Colin Regan t: 01925 468403 e: colinregan001@yahoo.co.uk

For email enquiries, iod.scotland@iod.com

Tel. 0131 557 5488 Fax. 0131 557 5818

Production: Rob Beswick t: 0161 426 7957 e: beswick@cssystems.net

Although every effort is made to ensure the accuracy of material contained within this magazine, neither IoD Scotland nor Chamber Media Services can accept any responsibility for omissions or inaccuracies in its editorial or advertising content.

The views expressed in this publication are not necessarily those of the IoD. The carriage of advertisements or editorials in this publication does not constitute an endorsement of the products or services advertised.

Cover picture: The IoD can help connect you to the world of business.

Picture from Peshkova / 123RF Stock Photo

IoD Scotland Spring 2013 | 03

IoD Executive director

Economic challenges ahead but Scotland has good news on the jobs front Overseas investment is helping to keep unemployment low but it’s time Scotland used its excellent educational sector to improve young people’s career prospects, says IoD executive director David Watt 2012 was another challenging year for Scottish businesses.

Despite the news that the UK enjoyed an economic boost in the third quarter, this has not trickled north of the border, although it was perhaps the Olympic lift which helped the UK to one per cent growth in GDP in the third quarter – and this also came with rising UK national debt.

The Eurozone continues to be in a confused position and doesn’t look like getting to a long-term fix any time soon, despite various political commitments.

So tough times remain – not just for business but for many individuals.

One of the most important and concerning issues facing Scotland in 2013 is the high level of continuing youth unemployment. Recent estimates have shown that more than 100,000 Scottish youngsters are out of work, and with a lack of quality training and employability skills for many leaving our education system, our workforce of the future faces a great challenge.

On a more positive note, however, unemployment in Scotland fell by 19,000 to 204,000 in the final quarter of the year – a reduction of 8.5 per cent – and our unemployment rate is below the 7.8 per cent UK average.

According to a survey by Ernst and Young, 5,926 jobs were created through overseas investment in 2011, up by 50 per cent on 2010, and the figures put Scotland at the top of the jobs table for the second year running. It is extremely encouraging that companies looking to invest in jobs in the UK are more likely to choose Scotland than any other part of the country.

In terms of inward investment in 2012, Swiss software company Avaloq showed its confidence in Scotland and in February opened the doors to its new development centre in Edinburgh, which will create 500 jobs over the next four years.

The number of new firms starting up in Scotland continues to increase, and there are now numerous initiatives to help kick-start business growth and stimulate investment.

So, while Scotland seems to be lagging behind the rest of the UK, we are seeing some signs of improvement, although there is still a long way to go.

04 | IoD Scotland Spring 2013

Most recently came the excellent news that the Entrepreneurial Spark initiative is opening in Edinburgh (in partnership with Edinburgh Napier University) following its success as a stimulating start-up incubator for developing co-operation among entrepreneurs.

Many of our business leaders have been steering through choppy waters for some time. They realise that strong leadership and direction is what is required to survive the storm. While there is still some way to go until confidence returns, it’s important we don’t lose sight of the fact there are still opportunities out there. Our traditional markets are all feeling the strain, but there are many countries across the globe that continue to prosper and represent an opportunity for Scottish companies.

As for governments, we need them to act positively to support the private sector. They need to stop focusing on unnecessary legislation and instead concentrate on infrastructure, including broadband development. There have been some welcome moves in this direction north and south of the border, but more can and should be down, for example to use planning as a growth tool and to see major road infrastructure commence.

In Scotland in particular we must focus on the wealth creation agenda and re-build what used to be the world’s most innovative and entrepreneurial nation. The current obsession with our future governance is understandable but not helpful right now – we have more immediate

“

Many of our business leaders have been steering through choppy waters for some time. They realise that strong leadership and direction is what is required to survive the storm. While there is still some way to go until confidence returns, it’s important we don’t lose sight of the fact there are still opportunities out there.

IoD Scotland Conference 2013: Friday, November 1

challenges to face and an economy to build.

Truly the attention should be on ‘Sustainable Economic Growth’ and we can debate other matters in the background and work on how to vote when it comes around in Autumn 2014.

2013 will see some of the deeper effects of public sector cuts begin to kick in and we need to build our business strength to pick up the personnel and the resources which will come out of this. It means growth, even in the most difficult economic situation we have ever faced – which will be another real challenge.

There are some areas where Scotland is progressing and despite financial and global challenges the country is making significant steps forward, with opportunities to grow now and in the future.

Building on the enormous strength of the North Sea and the reputation that Aberdeen has developed as a world centre for energy, Scotland is a genuine world leader in many aspects of this industry. Even the latest gas production techniques in fracking have sizeable expertise based in this country.

There is, of course, a link with this to the everexpanding renewable energy industry and Scotland has been recognised by many inward investors as a world player in this aspect of energy production.

We have witnessed fantastic developments this year, like the Waldorf brand coming to Edinburgh, as well as Glasgow quickly becoming one of the UK’s leading event centres. And as Glasgow 2014 fast approaches, Scotland’s reputation for international events can only grow further.

Specialist engineering, while facing real difficulties such as the rate of Euro exchange, is another area where Scotland has long had some very special people and companies, and this continues into the 21st Century.

Add to this the reputation of our fantastic universities and there is genuine justification for a belief that Scotland can survive and thrive. It is clearly not all doom and gloom, as despite the problems for the nation’s economy we have great people who will ensure we will prosper despite the challenging world in which we operate.

In a fiercely competitive global economy, Scotland’s economic prosperity depends on our success as a wealth creating, outward-looking and enterprising nation.

We need to set ourselves ambitious targets for export growth, and the onus is on us all to show the necessary leadership to help build a stronger economic future for the country.

Gleneagles to host IoD Conference IoD Scotland has announced that its prestigious annual conference will be held at the world-class Gleneagles Hotel on Friday, November 1.

The hotel resort has previously played host to the G8 Summit and is regarded as one of Scotland’s finest hotels.

As with previous years, we will be joined by a high-quality array of speakers and presenters who will offer their thoughts on the conference’s official theme, Building a Successful Business.

Proven business leaders will talk about their own experiences in building a successful business, with practical advice on how to grow your company. They will consider areas such as staffing, leadership, selling, exporting, innovating and working with partners, and the workshops will give you interactive sessions in which to tease out these ideas.

More details will be announced soon: keep an eye on www.iodscotland.com

Warning over bogus ‘official’ Open deals On 17-21 July 2013, The Open Championship returns to Muirfield after a three-year absence from Scotland.

IoD Scotland members have been warned to avoid unofficial hospitality packages being sold for this year’s Open Championship at Muirfield.

Ticket demand is likely to be high for this much sought-after event.

However, the R&A has warned IoD members that a number of unofficial groups are selling ‘official hospitality packages’ despite not being allowed to do so.

“The Open Championship Official Hospitality Programme for Muirfield 2013, is the only ticket and on course hospitality inclusive packages approved

by The R&A,” said a spokesman.

“By purchasing through the Official Hospitality Programme we are

guaranteeing to provide members and their guests with the location they want, on the course, close to the action, with the additional comfort of knowing that their purchase is secured

by The R&A and tailored to the highest standards of customer service.

Companies and golf fans should carry out due diligence before purchasing any tickets or hospitality at The Open.”

The Official Open Championship Hospitality Village, situated on Muirfield’s 9th hole gives guests the perfect space in which to relax, savour the superb catering, absorb the atmosphere and see the world’s greatest golfers up close.

• Details of all the hospitality packages available at The Open can be found at www.TheOpen.com/ hospitality.

IoD Scotland Spring 2013 | 05

Branch news Highlands and Islands Branch

Spreading the word – over an area the size of Belgium!

by Paul Houlden Chairman, Highlands & Islands Branch It’s been around a year since I came back to act as interim chair of the IoD Highlands & Islands Branch. During that time I have started to rebuild the membership and the IoD brand in the Highlands & Islands. This is quite a challenge as the area is equivalent to the size of Belgium, with a vastly dispersed population covering the mainland and islands from Shetland to Coll and Tiree, and all the islands in between. This creates a challenging situation, however I do want to include as many of the membership as possible, wherever they are based, in what we are doing in this area and on a wider scale across Scotland and the UK. We have a very small committee which is responsible for organising all that we do. We have tried to encourage members to join in the events and have undertaken to organise and deliver five ‘Influencer’ events with generous help and support from Highlands & Islands Enterprise (HIE) and the offer of the use of UHI premises across the region.

We have successfully built this into a superb way to attract influential and successful business people, MSPs and MPs into the region.

Each event opens with a lecture delivered by our guest speaker, followed by an open Q&A – these lectures are FREE and open to all, so members are encouraged to bring friends and colleagues. Events are also available by video conference – contact Paul Ellison at UHI for access details.

Following the lecture invited guests join us for dinner at a local hotel. This is a marvellous way to network and influence ministers by engaging with them at grassroots level, making them aware of the issues that concern us here in the Highlands and Islands.

Inverness is the obvious centre of much of our activity, as it has the largest population and number of IoD members. However, in 2011/2012 we decided to extend the reach of these events to areas outside of Inverness to help to include as many members as possible.

It was a popular move, with events held

06 | IoD Scotland Spring 2013

Pictured at the Fort William event are (from left) James Fraser, UHI; Paul Houlden, Chair H&I; Lydia Rohmer, WHC; John Swinney MSP; Dr Crichton Lang, UHI; Michael Foxley, WHC; and Dr Jeff Howarth, VP Research and Enterprise

successfully in Thurso and Elgin. This year, again with HIE and UHI support, we branched out into Fort William and held the first of what will hopefully be many events in the West Highland College, UHI, on January 14. The students prepared food and had drinks available and were able to offer all the guests hospitality before the lecture. This event attracted upwards of 80 guests which for a town the size of Fort William, with a population of only around 10,000, was quite remarkable and an encouraging indictor for the success of future events.

The event would not have been possible without the support of Lydia Rohmer, Principal of West Highland College (WHC), for what we were trying to do, and she made staff and students available to ensure this event was a success. Our thanks go to everyone at the WHC, UHI and to HIE for making such an event possible.

Other influencer events saw Fergus Ewing

MSP join us in Thurso; William Dawson, Bank Of England, join us in Inverness; while John Swinney, Scotland’s Finance Minister, addressed us in Fort William.

Future events will see Graeme Waddell join us at an Influencers’ event on March 18 at Elgin. We would be delighted if you could join us. The events are free and can be booked via the IoD website (see panel right).

We will also be running an annual economic lecture, which this year is booked for 14 June at UHI. It will be delivered by Graeme Leach who is the IoD’s Chief Economist and Director of Policy. This lecture always attracts high-profile guests from the business and political worlds.

Away from the formal influencers debate and lectures, we have organised a new event for 2013: a golf tournament, more details of which can be found on page 15.

We are hoping that this will become a prestigious annual IoD event held in the Highlands & Islands.

See the IoD Scotland website to book at http://www.iodscotland.com/inverness/362royal-dornoch-golf-tournament for more details.

Finally, we really do need more members to come forward in order for us to build our committee. In particular we are seeking someone who would like to be considered for the position of chairperson. If you are interested in help out, in any capacity, please get in touch with me at pbh@p2partners. co.uk or via 01349 805001.

IoD Glasgow and West of Scotland

Leadership Lecture by Graeme Waddell, Energen Biogas Date: Monday, 18 March Time: 4.30pm - 6.30pm Venue: Moray College UHI, Elgin,

Moray, IV30 1JJ Cost: FREE In the latest of the IoD Scotland Highlands & Islands series of leadership lectures, Graeme will speak about leadership in practice, how he has applied it to his career and how he has reached the positions that he has reached. The differences between management and leadership will be defined and Graeme will explain how he has applied both during his career.

Graeme is director of Energen Biogas, an energy renewable company which he has recently established. He is a former business director of Rolls Royce Aero Repair and Overhaul, responsible for providing leadership and business focus for the 1,000 people employed by Rolls Royce in East Kilbride.

Graeme is a Fellow of the Royal Aeronautical Society and holds a BA and an MBA from the University of Strathclyde. He is a former member of the Skills Committee of the Scottish Funding Council and was also a member of a Literacy Commission sponsored by the Scottish Labour Party which published its report in December 2009. He is currently a member of the Government’s Skill Utilisation Leadership Group, a Board Member of Scottish Enterprise, and chairs the West Regional Advisory Board and the Scottish Manufacturing Advisory Board and works with the University of Glasgow and Glasgow Caledonian University as a business advisor. Graeme has written several articles for magazine publication on the topics of skills and leadership.

Membership buoyant as events diary promises a great 2013

by Laura Gordon, Chair, IoD Glasgow and West of Scotland We were delighted to start 2013 off with a significant increase in our membership in Glasgow and the West of Scotland, not just through retention of existing members but with a number of new members, many of whom have enjoyed our events throughout the year.

We saw 2012 out with our highly successful annual Christmas Reception at the Blythswood Hotel, which welcomed more than 60 business leaders for some convivial seasonal networking and a prize draw for our chosen charity Clic Sargent, which raised almost £700.

Sponsored by Investec, this flagship event always attracts members and non-members alike, and enables likeminded business leaders to mix and mingle while thanking the hard-working

committee members for all their effort throughout the year.

For 2013, we have a number of exciting events in the diary – from online reputation management at BTO Solicitors, to a visit to the new Commonwealth Arena with Mike Cavanagh, chair of Commonwealth Games Scotland; a Behind the Scenes look at STV with Rob Woodward, Alan Clements and Bobby Hain; and three scheduled Influencers Dinners with Colin Robertson of Alexander Dennis, Maurice Taylor of Chardon Management and Rupert Soames of Aggreko. In addition we hope they’ll be a few theatre visits thrown in – we’re looking at a great year ahead.

I look forward to welcoming you to an event soon!

Event scenes: (below) Pictures from the branch’s Investec-sponsored Christmas event

To book, contact IoD Scotland head office on 0131 557 5488 or email iod. scotland@iod.com

IoD Scotland Spring 2013 | 07

IoD Scotland Director of the Year Awards: Category Finalists

Judges unveil high-profile finalists for IoD awards IoD Scotland Director of the Year Awards Dinner Date: Thursday, 21 March Venue: Crowne Plaza Hotel, Glasgow Time: 6.45pm-11.30pm Price: £115 + VAT

Tables of 10: £1,100 + VAT The IoD Scotland Director of the Year Awards continue to go from strength to strength – as illustrated in the high-quality nominees unveiled for this year’s awards.

Despite the economy continuining to throw up challenges to businesses, the nominations reflect the superb achiveements of Scotland’s directors and leaders, with each entry telling a story of growth, profitability, outstanding business practices and real leadership.

And now that hard work has been rewarded

as they have made it through to the finals of Scotland’s premier business awards.

We had an unprecedented number of entries this year – and they were of the highest quality we have ever received, too. Because of this, the judges made the decision to split the award for the Director of the Year into two, based on turnover. For the first time ever, an award will be presented to the Director of the Year of a business with a turnover up to £30m and one to the Director of the Year of a business with a turnover over £30m. The judges and IoD Scotland felt that this provided the opportunity to acknowledge and reward the directors from across the wide spectrum of business activity in Scotland, while reflecting the differences in leading organisations of varying sizes.

We will also be saluting Scotland’s business leaders in the following categories:

• Female Director of the Year • Third Sector Director of the Year • Public Sector Director of the Year • Emerging Director of the Year • Director Award for Workplace Health, Safety and Wellbeing • Director Award for Flexible Working Policies • Director Award for Sustainability leadership We will also be making two special awards: the Non-Executive Director of the Year, and the Chairman’s Award.

In addition, each of IoD Scotland’s six regional branches will announce their own Director of the Year. We will also make a presentation to the outstanding young director, through our association with the Prince’s Trust Youth Business Scotland, and pay tribute to the Young Enterprise Scotland Director of the Year.

Director of the Year – Businesses over £30m Turnover Angus Macsween iomart Group PLC

Donna Malone Howden Group Limited

Never one to rest on his laurels, Angus drives the Group from the top.

A very hands-on director, Angus spotted the potential of cloud computing years ago and positioned iomart to be a prime player. It was his decision to buy a suite of data centres that created iomart’s USP delivering managed cloud services directly to customers without reliance on third parties. As a result the group has enjoyed unprecedented growth in recent times. Revenue has increased from £8.1m in 2008 to £33.48m in 2012, with profitability moving up and into the black in the same period.

Donna has played a key role in guiding Howden Group through several years’ impressive growth, achieved through organic and acquisition activities, with considerable development in BRIC countries. Headcount has increased, too, and Donna’s experience has ensured that the “people infrastructure” was robust enough to integrate, develop and recruit new employees. Strategies include implementing a global HRIS system in seven languages, a transparent reward structure and new development programmes for leaders/managers and the company’s engineers.

Roy Macgregor Global Energy Group

Rob Woodward STV Group plc

Roy’s vision for Global Energy Group has been crucial to its success and strong growth. It launched in 2005 and since then, through a number of acquisitions and organic growth, the business has grown its turnover to over £200m, with a worldwide workforce of 3,500.

Key acquisitions include six of the Sovereign Oilfield Group companies in 2010 and the acquisition of the Nigg Yard site on the Cromarty Firth, which has one of the largest dry-docks in Europe. His ability to see the acquisition of Nigg as an opportunity after years of the site being underutilised is an example of his outstanding vision.

In the last five years Rob has masterminded the revitalisation of STV, implementing wholesale changes to a previously ailing business. There is a new and clear strategic vision and he has overseen extensive financial, organisational and cultural restructuring which has rebuilt investor confidence and improved stakeholder engagement.

His leadership has played a pivotal role in establishing a sound financial structure, a successful rights issue and disposing of three non-core business which helped return STV to profitability. STV is now seen as a digital innovator with a winning culture.

Awards sponsors & supporters

brought to you by ScotRail

08 | IoD Scotland Spring 2013

‘Celebrating excellence in the profession of directorship’

Judging panel: Standing, from left: Ian McKay, Chairman, IoD Scotland; David Watt, Executive Director, IoD Scotland; Professor Ron McQuaid, Edinburgh Napier University; John Downie, SCVO; Raymond O’Hare, OCSolutions – Chair of the Judging Panel; Jack Perry CBE; Steve Bell, Scottish Centre for Healthy Working Lives. Seated, from left: Mairi Mickel, Chair of the Mickel Foundation; Jane Wood, Scottish Business in the Community; Donna Chisholm, Highlands & Islands Enterprise; Kathryn Chisholm, Scottish Government

Director of the Year – Businesses up to £30m Turnover Fred Bowden Woollard and Henry Ltd Under Fred’s leadership, Woollard and Henry has moved from a position in 2002 where closure was a real possibility to the current one, built on strength and continuing growth. Turnover and profits are up, share value has increased from 80p to over £4.50 last year, and exports now comprise over 60 per cent of turnover.

Yet back in 2002 this was a company with a single product selling in the domestic market. However, Fred’s inclusive style of management helped convince the workforce to join him in transforming the business. The bold diversification strategy has been achieved by building internal capability in terms of people, equipment and physical capacity.

Peter Bruce Entiér Limited Entiér was created in 2008, with Peter a founder member and pivotal to its creation and principles. It is his vision and passion for providing quality food and a quality service that is the backbone to the success of the company, which now serves the offshore catering and hotel services market. Growth has been steady, both onshore and offshore, and the company has 16 contracts and 23 offshore contracts, employing 500 people and projected sales of £33m in 2013.

This growth has been built on excellent performance delivery, with clients impressed by the open and honest culture he has instillled throughout this thriving business.

Dick Philbrick Clansman Dynamics Ltd Dick has grown the company from a three-person start-up into a global leader in the supply of foundry and forge handling equipment, with an impressive customer list. He has an unwavering focus on selling a

widening range of products to an increasing number of countries, all backed by ‘better-than-German’ engineering.

During the past three years, in which the engineering sector has been particularly hit by the recession, Clansman has increased turnover by a spectacular 65 per cent. Profitability for the same period has grown from £810k to £1.75m. The company continues to increase its international presence and over the past 24 months has begun supply to an additional five countries, with the country now operating in 41 in total.

Professor Seona Reid Glasgow School of Art Professor Reid has ensured The Glasgow School of Art takes a longer term perspective. Critical in this was an understanding that all the senior management team had to develop a shared ethos, ambition and purpose, with objectives planned through to 2025 by way of four three-year milestones.

A combination of this longer term ambition and shorter-term delivery plans has created a planning legacy at GSA, providing space for new institutional leaders to develop their own plans.

Hans Rissmann obe Edinburgh International Conference Centre Limited (EICC) Hans Rissmann has led by example since opening EICC as its Chief Executive in 1995, exceeding the original expectations of its business tourist customers and helping place Edinburgh in the first rank of the global meetings industry.

He maintains a business-wide focus on customer service through his early adoption and international advocacy of the European Foundation for Quality Management (EFQM) Business Excellence Model. His direction towards sustainable operations has seen investment in EICC’s Plan-it green programme return cost savings of £603,000, an EFQM Award in 2003 and People Development and Involvement award, too.

IoD Scotland Spring 2013 | 09

IoD Scotland Director of the Year Awards: Category Finalists Public Sector Director Sir Peter Housden Scottish Government During this current time of economic uncertainty, increased demand and reduced budgets, Sir Peter has brought a new energy and approach to the management and delivery of the Government’s priorities. In particular, his leadership of the Scottish Leaders’ Forum, the key network of Chief Executive-level public service leaders, has fostered collaborative working, delivered significant impetus on youth employment and workforce development, and transformed the approach to performance improvement in the public sector.

Maggie McGinlay Scottish Enterprise Scotland’s food and drink sector has consistently outperformed the rest of the economy over the past five years – in no small part to the strategies and vision put in place by Maggie in her role as food and drink director at Scottish Enterprise. Her collaborative working across public and private sectors has proved highly successful, as has her clear focus around opportunities in export markets, where thorough research has provided clear guidance to companies on possible new markets.

Professor Seona Reid The Glasgow School of Art (GSA) The GSA’s continued development has been a key feature of Prof Reid’s work, where she has led the way on a number of projects including estates, finance and environmental sustainability.

The £8.6m Mackintosh conservation project has been delivered successfully, the Phase 1 building plan is under construction and there are plans for Phase 2 for the postgraduate and research community.

In addition, Reid has lead GSA’s successful internationalisation strategy.

Ian Welsh Health and Social Care Alliance Scotland A series of ambitious management decisions

by Ian has seen the Health and Social Care Alliance Scotland take on a leading role in several key agendas, including health and social care integration, self-directed support and reshaping care for older people.

Ian’s drive and determination was instrumental in securing the renewal of the three-year £6 million Self Management Fund for Scotland to deliver these key services, and in building new formal strategic partnerships. agreement with Scottish Government.

10 | IoD Scotland Spring 2013

Director Award, Flexible Working Policies Moira Bayne Housing Options Scotland Housing Options Scotland has adopted a new culture of agile working, giving the employees the flexibility they need to offer their help to disabled people.

Moira’s high level of leadership skills are essential for the concept to succeed.

However, she has been able to drive through a number of changes that have helped create positive working relationships based on support, trust, and common objectives and provides a strong role model for staff, where motivation is critical.

Andrew Cunningham / Andrea Horner (joint nomination) Barclays Barclays is an employer of choice for its commitment to developing a culture of work-life balance. In 2012, Andy and Andrea led a Flexible Working awareness campaign, showcasing existing flexible

working arrangements and providing insightful personal experiences. As co-chairs of the Women’s Initiatives Network, Andy and Andrea have driven a culture which embraces and promotes the personal development and career management of both men and women.

Their ambition mirrors that of Barclays, to attract, develop and retain the best talent in the marketplace and reinforce diversity.

John Lupton Scott & Fyfe Limited John has turned around an ailing textiles business by transforming every aspect of its operation, including its working practices.

Key has been a desire to release the talents of staff who were previously under-utilised, promoting a new relationship between the employer and the workforce. Flexible hours and shifts now help staff establish a better work-life balance, while there is a new willingness to adapt to changing circumstances within the workforce.

Third Sector Director Jo Armstrong ENABLE scotland

Neil Matheson Atlantis Community Leisure

As one of the leading economists in Scotland, Jo Armstrong has strengthened ENABLE Scotland’s position in the voluntary sector by supplying valuable insight into the public spending cuts facing the sector and delivering this message in a way that resonates with its stakeholders.

She has restructured the organisation, from front-line services to the boardroom.

The board of trustees is now more dynamic and commercially-aware, and better reflects changes within the social care sector.

The figures behind Atlantis Leisure’s success are testimony to Neil’s achievement: a community-run facility which employs over 50 local people, turning over £1m pa.

Its Friday night youth club attracts over 80 young people; a PlaySport programme coaches over 200 children weekly; and Atlantis records c.17,000 user visits each month – more than twice the Oban population. It also works collaboratively, partnering and supporting other local clubs and social enterprises.

Louise Macdonald Young Scot

Simon Milne Scottish Wildlife Trust

Louise’s leadership skills are beyond question: she is recognised both internally and externally for promoting creativity and innovation throughout the organisation, and contributes nationally and internationally to developing good practice.

Staff, partners and stakeholders report positively about the open and motivational style of leadership within Young Scot.

An Investors in People report praised her leadership style “which encourages openness and a caring and supportive work environment.”

Simon has been instrumental in transforming a charity with significant financial problems and outdated governance and operational processes into a highly influential, financially sustainable, pioneering and results-driven organisation.

He has provided the leadership and vision to effect this transformation and expand its reach, profile and reputation.

Simon has assembled a highly effective team that is empowered, inspired and committed to furthering its objectives.

‘Celebrating excellence in the profession of directorship’

Director Award for Sustainability Leadership Andrew Cort FMC Technologies Ltd Andrew is a recognised and respected leader, both within FMC Technologies and the national business sector. He is a man with a clear vision for sustainable business practices and links the company’s continued success to a clear strategy to support both the environment and industrial safety. He takes this commitment into the community, where he chairs The Greenshoots Fund, a major backer of local sustainability projects.

Paul Easto Wilderness Scotland Wilderness Scotland is a shining example that sustainable business can be good business.

Paul has led the company to a host of awards

and accolades for both its services and its respect for the environment, including the Best Green Travel Operator in the World and becoming the only Scottish business to be awarded five stars for sustainable tourism.

Revenue has increased to £1.5m, while the organisation remains committed to sustainable tourism programmes throughout Scotland.

Alan McLeish QTS Group Alan has shaped an outstanding success story in Scotland at QTS Group. Today it is one of the most progressive businesses in the country, delivering high service standards to Blue Chip clients, yet it retains outstanding green credentials, with major projects on biodiversity and renewable energy. It is currently working with Scottish Enterprise on a

wide-ranging sustainability feasibility study into wind turbines, rain water harvesting and solar energy as it bids to become carbon neutral.

Sara Speirs Spectrum Service Solutions Limited Spectrum has flourished under Sara’s management into a formidable facilities management business with a very strong and accredited bias in cleaning and waste. Sara led it to the prestigious award of Carbon Trust accreditation in 2012, demonstrating her commitment to Zero Waste. Its success enabled it to win the cleaning and waste service to LOCOG during the Olympics, and Sara is also working closely with Hampden Park to meet its commitment to being the first stadium in Scotland to have zero waste.

Book your tickets for the awards evening now – see www.iodscotland.com or email awards@firstcityevents.co.uk

Director Award for Workplace Health, Safety and Wellbeing Alfie Cheyne ACE Winches Alfie is a creative decision maker, full of energy and drive, and responsible for shaping the strategic direction of ACE Winches. He has proactively supported workplace health, safety and wellbeing by encouraging the development of a programme of activities and by supporting staff to achieve a balanced and healthy life.

This includes a major investment in a new office complex in rural Aberdeenshire which includes a gym, recreation room, health room and canteen. As a result, the company has received the Bronze Healthy Working Lives Award.

Group Captain Ian Gale mbe RAF Lossiemouth Working in the challenging environment of RAF Lossiemouth, Group Captain Gale is involved in every aspect of the well-being and personal development of the service personnel and civilian staff on the base.

He has a high-profile and operates an open-door policy towards all his staff. Recent concerns over redundancies has led to Gp. Cptn Gale organising a special event on civilian stress in the workplace.

Other events have focused on maintaining a healthy work-life balance, while staff can always rely on Gale to support base activities within the local community.

cycle-to-work scheme, which has now led to funding towards a cycle shelter. While the focus is on health at work, Aquascot is also very community orientated and many of the events and initiatives are fundraisers for local charities and school projects.

Dennis Overton Aquascot Ltd

Derek has installed a new culture of health and safety for all employees in what is always a tough environment to keep staff safe. Key to this is safety investigation training for all incidents and near misses to reduce future accidents.

In addition, he takes employee health very seriously, seeing the benefits from both their point of view and from a business point of view.

A number of health promotions have been introduced throughout the year, helping reduce absenteeism from 9.47 days per person in 2010 to 7.88 in 2012.

Such has been this achievement that Healthy Working Lives has used the airport as a best practice case study.

Throughout his 25 years as MD at Aquascot, Dennis has made the health, safety and wellbeing of employees a priority. Dennis started by getting the business involved with Scotland’s Health at Work scheme, achieving Gold standard within three years. When this evolved to Healthy Working Lives he again drove the business to achieve the Gold standard.

Each year significant sums are spent on employee healthchecks, employee conferences, a leadership council for employee views, free fruit, subsidised sportscentre membership and a

Derek Provan Aberdeen International Airport

IoD Scotland Spring 2013 | 11

Director of the Year: Celebrating excellence in the profession of directorship

Regional director awards finalists The following directors have reached the finals for IoD Scotland’s six regional awards.

Aberdeen & Grampian Peter Bruce, Entiér Limited Leo Koot, TAQA Bratani Ltd Dr George S Stevenson, GSS Developments (Aberdeen) Ltd

Edinburgh, Lothians & the Borders Fiona Burrell, Edinburgh New Town Cookery School Nick Price, Bright Purple Resourcing Brian Williamson, Jumpstart

Female Director Louise MacDonald Young Scot

Professor Seona Reid The Glasgow School of Art (GSA)

As the national youth information and citizenship agency, Young Scot supports young people to make informed decisions and choices.

Louise has led a raft of service and operational improvements, including the development of a new vision for the organisation which has been widely praised. She has also launched a new behaviour competencies framework to support workforce improvements and a model to ensure inclusion of vulnerable young people.

Professor Reid has made an enormous cultural, educational and economic contribution to the GSA. Her leadership of a small and highly creative organisation has focused its attention, allowing it to flourish and realise ambitions despite operating in a challenging environment.

She has set an outstanding example of professionalism, commitment and leadership and driven the GSA to embrace new avenues, particularly in working with students overseas.

Donna Malone Howden Group Limited

Theresa Shearer Enable Scotland

Donna’s lead role in creating and rolling out a global employee engagement plan has underpinned Howden’s growth and performance over the past five years. She set a clear vision for the global HR function to ‘deliver business excellence, powered by people’. Focus areas include alignment to the five-year business plan, leading people change and identifying, attracting and retaining a diverse global workforce and providing managers with the tools to motivate.

ENABLE Scotland’s operational systems have been transformed over the past three years as Theresa applied skills, expertise and business insight from the private sector to reverse deficit trends and improve service standards.

She highlighted margin-producing areas and conducted reviews, leading to on-going financial sustainability of the charity. New models of service delivery such as social enterprises and public social partnerships have been introduced.

Fife & Central Scotland Andrew Cort, FMC Technologies Ltd Bruce Galloway, Glendale Plastics Limited John Lupton, Scott & Fyfe Ltd

Glasgow & West of Scotland Donna Malone, Howden Group Limited Alan McLeish, QTS Group Dick Philbrick, Clansman Dynamics Ltd Sara Speirs, Spectrum Service Solutions Limited

Highlands & Islands Caroline Campbell, The Ironworks Venue Roy MacGregor OBE, Global Energy Group Neil Matheson, Atlantis Community Leisure Annie Stewart, ANTA

Tayside Vivien Buchan, Insights Learning and Development Tony Banks, Balhousie Care Group

12 | IoD Scotland Spring 2013

Emerging Director Vivien Buchan Insights Learning and Development

Joe Hallwood TEFL Scotland

Insight’s financial position has strengthened dramatically under Vivien’s leadership. Last year she steered the company to its ambitious target of £30m global - a target set way back in 2003, when the company’s turnover was just £2m. Her hard work and dedication helped Insights to navigate successfully through challenging economic times as a result of the downturn. Her role also sees her control other key areas of the business, including legal and operations, while taking an integral role in Insights’ people strategy.

Joe spent several years teaching English abroad before he spotted an under-developed market in Scotland for teaching English to international travellers.

His effective management of the rapid growth and change within the organisation has been exemplary. He has put a strong focus on exploring opportunities in overseas markets, including a recent exploratory visit to China, which is leading to new and exciting ventures for the organisation as a whole.

Fiona Burrell Edinburgh New Town Cookery School

Louise Nicolson Bread Public Relations

Fiona is the inspiration behind Edinburgh New Town Cookery School. She has unrivalled expertise and experience stemming from years of training people to cook, from enthusiastic amateurs to those with serious aspirations to be the nation’s top chefs. Fiona’s professional teaching knowledge provides a rock solid platform on which her entrepreneurial business skills have flourished, as demonstrated by the school’s reputation for excellence across the UK and its many awards.

In 2009, Bread started with one woman and no clients. Fast forward to 2013 and the company now employs 12, with 26 clients.

Louise has developed new business lines, some unique to the local market, including an innovative interim placement service. She has actively sought senior business development personnel from outside the PR industry to codevelop robust processes and strategies. Louise is passionate about Bread’s next generation and actively develops the business’s future leaders.

IoD events diary

Referendum 2014: Let the IoD know what’s important to you Scotland Referendum Lunch Series Troon Venue: The Marine Hotel, Troon Date: Tuesday, 12 March Time: Noon-2pm Venue: The Carlton Hotel, Edinburgh Date: Tuesday, 23 April Time: Noon - 2pm Venue: The Cairndale Hotel, Dumfries Date: Tuesday, 2 May Time: Noon - 2pm Price (applicable to each event)

Members, £20.00 + VAT;

Non-members, £30.00 + VAT IoD Scotland is keen to question the politicians and others on either side of the independence debate – with a strong emphasis on the business and economic perspective.

But before we do so, we want to know what our members’ views are and what questions we should be asking of the senior figures involved.

What do you think are the key issues? If you

had five minutes with either side of the issue, what point would be pressing?

To find out your views in person, IoD Scotland’s executive director David Watt has organised a series of lunchtime events throughout Scotland at which you’ll be able to put your views across and tell him the questions and issues that are concerning you.

Get your opinions across to the IoD over lunch, and use the IoD to get your views into the public arena.

There are many views and opinions on this vital issue but the IoD can only represent our members properly if we know what you think.

We hope you can join us at one of these events.

RBS Economic Luncheon

Senior economist takes a look into the future Venue: Royal Bank of Scotland (Edinburgh) Date: 13 March 2013 Time: 12:30 - 14:30 Price: Members, £25;

Non-members, £30 David Fenton is head of the microeconomics team at RBS, providing analysis of, and advice on, developments across industry and the household sector with a view to identifying risks and opportunities for RBS and its customers.

In the second of IoD Edinburgh’s economic analysis luncheons with RBS, David will talk about his own and other economists’ experiences of the financial crisis, RBS’s role, and most importantly for IoD members, where the economy ‘goes from here’.

“I’m an economist and Scottish, so I’m naturally pessimistic – but let’s not kid ourselves that this is over,” as he put it in June of last year.

David has a Masters degree in economics from Glasgow University and is an acknowledged and authoritative spokesman on this key issue.

This should be a stimulating and informative session that could help you plan ahead for the economic conditions of the next few years.

To book on any IoD Scotland event, see www.iodscotland, call 0131 557 5488 or email iod.scotland@iod.com.

14 | IoD Scotland Spring 2013

Influencers’ Dinner with Maurice Taylor, CEO, Chardon Management

Aberdeen lunch

Learn secrets of 40 years in the hotel trade Venue: Date: Time: Price:

Hotel Indigo, Glasgow Thursday, 18 April 18:30 - 21:30 Members £30 (+ VAT), Non-members £40 (+ VAT)

IoD Glasgow & West of Scotland invites you to an Influencers’ Dinner with Maurice Taylor, CEO of The Chardon Group, hosted in one of his flagship venues, Hotel Indigo, Glasgow, on Thursday, 18 April.

Places are limited and your three-course dinner will be complemented by a wine tasting.

Maurice Taylor is a fascinating host. He has over 40 years of leadership in the hospitality industry and was the founder and chief executive of The Chardon Group.

Renowned and respected both nationally and internationally, Maurice is recognised for his dedication to entrepreneurship and innovation, and distinguished by strategic vision.

In the recent past, his drive resulted in CML’s successful takeover of the management of seven UK-based Hilton Hotels and their subsequent rebranding as well as the operational takeover of the 12-strong Morethan Hotels portfolio in 2009.

Maurice owns a number of Scotland’s most successful hotels and restaurants, including Holiday Inn Glasgow Theatreland and Quality Hotel Edinburgh Airport.

Throughout his years in the industry Maurice has been the proud recipient of a plethora of awards including Lifetime Achievement and Entrepreneur of the Year from a number of august bodies.

He is currently visiting Professor at the Scottish Hotel School and holds an Honorary Doctorate from the University of Strathclyde.

Our venue for this special lunch, Hotel Indigo Glasgow, is an exciting modernisation and recreation of a beautiful Victorian historic building right in the heart of the Glasgow financial services district.

Refreshingly different, inspirational and intriguing, this inviting Glasgow hotel has 94 bedrooms with the ultimate business communication facilities, complimentary Wi-Fi and the latest luxury hotel room comforts. The modern design throughout the hotel and a focus on the local history makes your stay a unique and pleasurable one.

The hotel brings back to life the former Scottish Power building from which the city’s first power station was run.

The perfect chemistry at lunch Venue: The Royal Northern

and University Club Date: Monday, 25 March Time: 12.15 for 12.30

- 2.15pm Price: Members, £25+VAT;

Non-members, £35+VAT Join us for lunch and a presentation by Paddy Collins, a chartered chemist and managing director of Aubin. Aubin is an independent designer, developer, manufacturer and supplier of specialist chemicals and chemistry related to technology in the oil and gas industry.

He has nearly 30 years’ experience in the oil industry, in a variety of senior roles and with a number of leading oilfield service companies in the North Sea and internationally. In 2002 he set up his own business, which he merged into Aubin in 2007. The company has grown over the last five years by 400 per cent to over £5M both in the UK and internationally with over 70 per cent of this Ellon company’s specialist chemicals being exported.

Behind the scenes at ‘booming’ STV Venue: Date: Time: Price:

Scottish Television Ltd (Glasgow) Thursday, 7 March 17:00 - 19:00 Members £20 (+ VAT), Non-members £30 (+ VAT)

Scottish Television (STV) is on the up – and you can find out more about its successes and future plans from its senior executives at an exclusive behind-the-scenes tour with the IoD. We will be joined by STV’s CEO Rob Woodward, the station’s head of content Alan Clements and the director of channels, Bobby Hain.

Members joining us will gain a valuable insight into the media company as a business,

its role in Scotland today and see studios where the station’s top programmes are made. STV is Scotland’s digital media company and pre-eminent media brand and has just been awarded a new licences to run local TV stations in Glasgow (GTV) and Edinburgh (ETV).

Rob Woodward was appointed to the STV

Group plc Board as chief executive in 2007.

Prior to this Rob served as commercial director of Channel 4 Television where he transformed the performance of Channel 4’s commercial businesses from heavily loss-making to significant profitability.

Alan Clements, the station’s Director of Content, oversees everything from drama to documentaries. Prior to joining STV, Alan was Creative Director at the independent TV production company IWC Media..

Bobby Hain has over 30 years of experience in media and is currently STV’s director of channels, responsible for its range of consumer services across television and online.

Places are limited and the evening includes a light buffet and refreshments.

IoD Scotland Spring 2013 | 15

IoD Events diary: Focus on Non-executives

Role of the non-exec has never been more important IoD Scotland Non-Executive Director Breakfast Series Venue: The Marine Hotel, Troon Date: Tuesday, 12 March Time: 08:00 - 09:30 Venue: Carlton Hotel, Edinburgh Date: Tuesday, 23 April Time: 08:00 - 09:30 Venue: The Cairndale Hotel, Dumfries Date: Tuesday, 2 May 2013 Time: 08:00 - 09:30 Prices (applicable at each event)

Members, £15

Non-members, £20

The role of non-executive director is becoming increasingly recognised as vital for effective corporate governance – as evidenced, for example, by the importance which private equity investing institutions attach to nonexecutive presence on the boards of their investee companies. Finding the right person for the job can be even harder given the potential risks and responsibilities involved.

IoD Scotland is hosting a series of breakfast events around the country to help those directors looking to learn more about the roles available and duties involved.

Join David Watt, executive director, IoD Scotland as we examine the role of nonexecutive directors - how effective and

independent non-executives really are and how their role interacts with that of the executive board. Our discussion will be facilitated by lead-in presentations from both David and Raymond O’Hare – OCSolutions, former chairman, IoD Scotland.

David himself holds a number of non-exec roles, including with Scottish North American Business Council and Business Club Scotland.

The development of excellence at board level is a key concern of the IoD and this event will provide an ideal opportunity to focus on, and ask questions about, the nature and scope of the non-exec role.

Numbers are limited so early booking is advised.

IoD Non Executive Director Courses 2013

IoD courses deliver the inside track on preparing for NXD positions Date: Tuesday, 2 May Venue: The Royal Scots Club,

Abercromby Place, Edinburgh

executive director; those seeking appointment as one and organisations planning to appoint a non-executive director.

Date: Tuesday, 9 May Venue: IoD Glasgow Hub,

West Regent Street, Glasgow

Course Content • What you as an NXD can bring to your board • What inputs NXDs can give to the board in different types of organisations and situations • An outline of the legal and ethical duties and responsibilities of a NXD • The qualities and experiences needed to fulfil an NXD appointment • Practical guidance on how best to secure an appointment as an NXD • Provision of an overview of the UK Corporate Governance Code and other relevant codes of conduct • Detailed guidance on finding, selecting, appointing and rewarding NXDs.

Date: Tuesday, 16 May Venue: Apex Hotel, 1 West Victoria

Dock Road, Dundee Prices: For all three course venues is

£299 + VAT This one-day course identifies the roles of the non-executive director (NXD) in a variety of corporate settings – family company, subsidiaries, third sector and the public sector; how their appointment can help balance a board and how they make an effective contribution to a board’s work.

It also examines methods for their selection and reviews their motivation, induction and reward.

Who should attend?

Individuals who are currently a non-

16 | IoD Scotland Spring 2013

Course benefits It will help improve your current performance as an NXD and help prepare you for the time when you may be appointed as an NXD. All delegates will receive extensive course notes. There will be ample opportunity to share experiences and future aspirations.

Non-executive opportunities

To give you an idea of the opportunities available to suitably experienced non-executive directors, the following posts were advertised on the IoD Scotland website during February.

• University of the Highlands & Islands; Non-Executive Chair & Court Members • NHS Tayside Board Member Appointments • NHS 24 Board Member Appointments • Volunteer your business skills to improve childhood in Scotland • Munro NED Alumni Network See www.iodscotland.com for future positions as they become available Companies with fewer than 150 employees may be eligible for a 50 per cent grant via Skills Development Scotland’s Flexible Training Opportunities programme.

To book, see www.iodscotland, call 0131 557 5488 or email iod.scotland@iod.com.

IoD Scotland is proud to announce its prestigious

Golf Tournament 2013 at Royal Dornoch Golf Course May 9 & 10, 2013 Play one of the best courses in the world in the company of fellow IoD members.

Enjoy the opportunity to entertain guests at this high-profile event.

Overnight accommodation at the superb Kingsmills Hotel and Spa Four packages available: prices start from £180 All packages include • Welcome snacks • Personalised gift • Still and video photography on the course • Halfway house refreshments • Golf clinic • Transport to and from course to Kingsmills Hotel and Spa • Free whisky tasting • 15% discount on treatments at Hotel Spa

To book contact IoD Scotland on 0131 557 5488 or email iod.scotland@iod.com

Package 1: Includes two days’ golf on the Championship Course; Dinner on Thursday and Friday; two nights’ accommodation in the Kingsmills Hotel and Spa; free use of hotel facilities Price: £460 Non-playing partner can join you for just £150 Package 2: Includes two days’ golf on the Championship Course, Dinner on Thursday and Friday; free use of hotel facilities Price: £310 Non-playing partner can join you for just £100 Package 3: Includes one day’s golf on the Championship Course (Thursday or Friday), one night’s dinner and accommodation in the Kingsmills Hotel and Spa; free use of hotel facilities Price: £280 Non-playing partner can join you for just £100 Package 4: Includes one day’s golf on the Championship Course (Thursday or Friday), one night’s dinner and free use of hotel facilities Price: £180 Non-playing partner can join you for just £100

IoD Events diary:

Increase the value and sell your business sponsored by Avondale Venue: Date: Time: Price:

Le Monde, 16 George St, Edinburgh EH2 2PF Wednesday, 24 April 9am - 1pm Members, £20 + Vat; Non-members, £30 + VAT

This event is specifically designed for owners of £1-20M turnover businesses in Scotland.

Attend and you’ll hear mergers and acquisitions, legal and tax experts provide real-world guidance and first-hand experience to help you prepare for an acquisition or sale and navigate the associated complexities. Directors will also have the opportunity to share information and experiences with their peers and to network with other business leaders who are in a position to buy or sell.

Our expert panel will be on hand to answer any questions you have throughout the morning. Topics include: business valuations, optimising deal value, increasing shareholder value, funding options, current economic risks and opportunities, deal structures, disclosures, guarantees, tax liabilities and opportunities as well as legal aspects.

Speakers include: Remo Pisaneschi and Kevin Uphill of Avondale and Ralph Riddiough of BTO Solicitors Stephen Millington of Sequoya and tax specialist Ann Somerville of French Duncan.

Breakfast Seminar:

Incentivising top talent: Legal and tax considerations hosted by French Duncan and Bellwether Green Venue: French Duncan, 375 West George Street, Glasgow G2 4LW Date: Wednesday, 12 June Time: 8.30-10am Price: Members, £10 + VAT; Non-members, £15 + VAT Bellwether Green Solicitors and French Duncan Accountants will provide a high-level consideration of the legal and taxation consequences of providing senior employees with employment incentives, particularly longer term incentives for those who could form ultimate MBO teams.

This is of particular interest to both employers and executives alike.

Speakers include Ann Somerville, Partner, Head of Tax, and Andrew Ford, Director, Private Clients, (both French Duncan), and April Bingham, Head of Corporate, and Sandy Reid, Head of Employment, (both Bellwether Green).

To book on any IoD Scotland event, see www.iodscotland, call 0131 557 5488 or email iod.scotland@iod.com.

18 | IoD Scotland Spring 2013

Paul Houlden, chair of the IoD’s Highlands & Islands branch, asks what is cyberterrorism – and what can be done to tackle it?

In today’s high-tech world, all types of computer networks are logical targets for all sorts of adversaries.

According to a figure from United States officials, an astounding 60,000 new malicious computer programs are identified every day.

Cyberterrorism poses a real threat to governments, organisations and individuals around the globe. In 2000 a still-popular definition of cyberterrorism was described as: “the convergence of terrorism and cyberspace - generally understood to mean unlawful attack and threats of attack against computers, networks and the information stored therein when done to intimidate or coerce a government or its people in furtherance of political or social objectives.”

Since cyberterrorism is a relatively new term and is a product of the technological age in which we currently live, its definition is naturally still evolving. And as the technology surrounding cyberterrorism itself changes, the definition of the term will continue to change as well.

A senior security researcher considers the thorniest issue is that the term’s root word is something society still struggles to define. He says: “The simpler term ‘terrorism’ itself can have a variety of definitions, and ‘cyber’ just adds layers of complexity and misunderstanding to the issue. As the terms ‘terrorist’ and ‘freedom fighter’ have been debated in the past, when it comes to cyber attacks, there can be a fine line between activism and terrorism. And which side of that line an event falls on often varies depending on your perspective. In today’s digital world, some see the progression from activist to ‘hacktivist’ as a natural one.”

What are the risks?

Since cyberterrorism is such a new brand of crime, as a society we tend to be somewhat complacent when it comes to cyber security. However, in the near future we can expect to hear more about both cyberterrorism threats and actual incidents. It is believed that the threat will only grow with the passage of time and it’s up to everyone to begin treating it as it deserves to be treated: with respect.

Currently, the most frightening potential attacks are those that come from all angles. A scenario is envisaged in which cyber terrorists simultaneously disrupt communications systems, infrastructure controls and financial markets. Such a wide-net strike would be difficult to pull off, but the resources may exist – for the right price and it somewhat depends on the attackers’ goals and capabilities, but capabilities are for sale.

In terms of actually inciting terror, most rightfully fear bombings and explosions more than anything else. But the damage caused by cyberterrorism attacks can induce a different brand of fear since they are orchestrated by a faceless evildoer. Tangibly, we can all relate: a power plant could be taken offline, a company’s finances could be wrecked and a region’s ability to communicate wiped out.

Intangibly, the psychological impact could be even greater and longer-lasting, as cyberterrorism strikes at the very heart of what makes us feel safe in a supposedly safe society.

This can lead to a feeling of helplessness and the feeling that

The threat of cyberterrorism

Government needs to get to grips with the growing cyber threat it allows enemies to easily bypass the traditional barriers of military and geography, and it allows them to get at the soft underbelly of day-to-day society. Fear of these types of attacks, in many respects, is just as debilitating as the overt effects might be.

Public accounts of large-scale acts of cyberterrorism can be difficult to come by. There have been some comparatively smaller-scale examples of cyber attacks in the recent past. The hacker group Anonymous, for example, has launched multiple attacks against authorities. Founded in 2003, this group of loosely associated hackers is extremely opposed to any type of internet surveillance and censorship. These attacks illustrate the broadly disruptive impact of a distributed, focused campaign to take down resources controlled by forces they deem as the enemy.

Chicago’s police department, for example, was taken down, and law enforcement agencies in Ontario had usernames and passwords published by hackers claiming to be affiliated with Anonymous.

Social factors have driven other hacktivists to action.

The Occupy movement as well as the Arab Spring spawned an upsurge in this type of activity.

While we all like to hope that our government infrastructure is infallible, there have been a number of attacks, some allegedly linked to governments in both east and west, which show that 100 per cent protection is likely to be impossible. Every system has areas of vulnerability, and there is no such thing as an inviolable or impenetrable solution. Like conventional crime, military and quasi-military threats, it’s foolish to think we’ll ever be 100 per cent safe. The world has simply never worked that way, and it isn’t about to start now.

A visible threat? The Anonymous hackers group hides behind the Guy Fawkes/ V for Vendetta figure while carrying out their activities Photographer: David Paul Morris/ Bloomberg

Can we stop cyberterrorists?

While no amount of improvement will ever ensure society is cyberattack free, experts say that governments and organisations should be proactive when it comes to investing in preventative measures. As technology continues to move forward at an alarming rate, so too must the laws regarding cyber activities. The simple fact is, currently, neither civilian nor government officials are truly able to combat this new and ever-changing threat.

Traditional law enforcement tools and processes need to be updated or replaced entirely. It is important to get past the short-term political gimmicks and silliness that we have seen and get down to business. Addressing the problem effectively is a complex and difficult task, and

“The damage caused by cyberterrorism can induce a different brand of fear... we can all relate to a power plant taken offline, a company’s finances wrecked or a region’s communications wiped out...”

overburdening defenders with ineffective tasks that waste time instead of necessary solutions is a difficult balance. To reach the proper balance, experts recommend that law enforcement officials and business leaders strive for improved task forces, specialised training, and a reprioritisation of resources toward this class of crime. This, they believe, will greatly reduce the risk of attack and lower the severity and impact if an attack does occur. They can raise the vulnerability bar sufficiently high to discourage the lesser-skilled and motivated attackers, and make life sufficiently difficult for the true pros. Unfortunately, those who built the last-generation standards of policing the digital world may not be up to the task without extensive and expensive retraining. And even then, they may not be able to adapt their capabilities to this new reality.

The existing culture within law enforcement may be inadequate and no one project or initiative will be enough to adapt. Nothing short of a wholesale rebuild of government and law enforcement best practices will do.

IoD Scotland Spring 2013 | 19

Exports... and Education

Explorer help drives Scotland exports boom With exports from Scotland increasing, the global demand for Scottish products and services continues to rise.

The latest Global Connections Survey released in January demonstrates strong growth in exports to emerging markets in Asia and South America, as well as sustained growth in the more traditional economies.

As Scotland continues to strengthen its international economic links, more opportunities exist for Scottish companies to grow their business overseas. Tartan Twist, an award-winning gift company, is one such business realising their global ambition.

The company was launched in 2008 by Lyndsey Bowditch and Gillian Crawford, who had a vision to create luxurious, affordable and authentic Scottish gifts.

Although the company’s initial focus was on the Scottish market, it was during the Scottish Trade Fair in 2008 when it first received interest from overseas customers.

The business secured orders from overseas and more significantly, interest of a Japanese company which led to Tartan Twist products being sold in York Tartan Stores throughout Japan, launching in January 2009.

To smooth the transition from national to international business the company worked with Scottish Development International, which supports companies looking to expand globally with research, contacts and help in understanding overseas markets.

Gillian Crawford commented: “Through working with Scottish Development International, we learned to approach new markets in a methodical manner, breaking them down into sections, researching thoroughly before visiting and building up contacts. We undertook an intensive six-week Smart Exporter programme and this allowed us to put together a blueprint for our overseas expansion. We always knew we had a product with strong export potential but it’s important that we export in an organised and structured fashion, following our blueprint and focusing on our target markets. It’s not something to be rushed in to without doing a great deal of homework. The support we have received has been invaluable and we’d certainly recommend the course to other businesses looking for growth.”

To see if your business can receive similar help to expand overseas, visit www.sdi.co.uk/ export-from-scotland.aspx to find out more about the free export support services available.

Alternatively, call 0800 917 9534 to speak to an adviser for one-to-one support.

20 | IoD Scotland Spring 2013

New qualifications will add excellence to Scotland’s education

Learning on right lines: As Curriculum for Excellence has brought new ways of learning into schools and colleges, so the new qualifications will help young people achieve their full potential

Curriculum for Excellence is the new approach to learning in schools and colleges which will develop young people’s skills for the 21st century.

The Scottish Qualifications Authority (SQA) has developed new National Qualifications to support Curriculum for Excellence.

Isabel Millar, one of SQA’s Curriculum for Excellence Liaison Managers, works directly with employers, training providers and other stakeholders to help them understand the changes to the Scotland’s qualifications system and what the new qualifications will mean for employers.

Isabel explains: “The new National Qualifications, which will be available in schools and colleges across Scotland in several months, will help young people reach their full potential as they progress from their broad, general education through to college, university, other learning, training and employment. It is our job to ensure employers understand the new qualifications and how they differ from the current system.”

Why are qualifications changing?

Curriculum for Excellence has brought a new way of learning into schools and colleges, equipping young people with the skills, knowledge and understanding they need to succeed in the 21st century. The skills young people learn

SCQF level Current National Qualifications

Replaced by

New National Qualifications

1 and 2

Access 1 and Access 2

National 1 and National 2

3

Access 3 Standard Grade (Foundation Level)

National 3

4

Standard Grade (General Level) Intermediate 1

National 4

5

Standard Grade (Credit Level) Intermediate 2

National 5

6

Higher

Higher (new)

7

Advanced Higher

Advanced Higher (new)

today will help them to succeed in life outside the classroom.

Isabel said: “Our new qualifications will help young people demonstrate the knowledge and skills they have acquired at school or college and enable them to prepare for employment, further learning and training.”

The new Awards, which have been available in schools and colleges since August 2012, are marked and assessed by teachers and lecturers and do not have any external assessment or exams. SQA will check the quality of these assessments to make sure they meet national standards.

Which qualifications are changing?

Other types of National Qualifications

The table above details the new National Qualifications and the current qualifications they will replace.

When can I expect to see young people with the new qualifications?

Explaining when employers would first encounter young people with the new qualifications, Isabel tells us: “The new qualifications will be introduced from August 2013 onwards.

The first young people to leave school with the new National 1, National 2, National 3, National 4 and/or National 5 will do so in June 2014.

“Many young people will continue to study at school or college after they turn 16 and some may go on to study for the new Higher and Advanced Higher. The first of these young people will leave school or college in June 2015 and June 2016 respectively.

“It’s worth remembering that some schools and local authorities may implement the delivery of the new qualifications in different ways, so these timescales could vary across the country.”

How will the new qualifications be graded?

The new courses at National 2, National 3 and National 4 will not be graded. They will be assessed as Pass or Fail by teachers and lecturers in schools and colleges.

Courses at National 5, Higher and Advanced Higher will be marked externally by SQA and graded A to D or ‘No Award’.

New Awards

Speaking about SQA’s new Awards, Isabel said: “Some employers may have already heard about our new Awards.

These have been developed alongside the new National Qualifications and do not replace any existing qualifications.

Their job is to give young people more ways to demonstrate their achievements at school and college.”

“Some of our new Awards cover work from across different subjects areas. They are shorter than our traditional Courses, and recognise success across different levels of difficulty, meaning they’re suitable for young people of all abilities.”

Which qualifications are changing?

The table (left) details the new National Qualifications and the current qualifications they will replace.

As well as the new qualifications, SQA is continuing to offer other types of National Qualifications that support learners’ Wider Achievement.

These include Skills for Work Courses, which encourage learners to become familiar with the world of work, and National Progression Awards and National Certificates which assess skills, knowledge and understanding in specialist vocational areas and prepare young people for employment, career development or progression to further study at HNC/ HND level.

Where can I find more information?

Our website, www.sqa.org.uk/cfeforemployers, is full of useful information to help employers understand the changes to the new National Qualifications, including how they have been developed and how we are working with schools and colleges to introduce them.

You can also keep in touch with us on Facebook at www.facebook.com/ScottishQualifications Authority, follow our updates on Twitter at @sqanews or subscribe to our YouTube channel www.youtube. com/user/SQAonline.

Employer Liaison Manager, Isabel Millar (right), is available to answer any questions you may have about the new National Qualifications and can be contacted at isabel.millar@ sqa.org.uk or on 07825 689 222.

IoD Scotland Spring 2013 | 21

Techs and Balances

Scotland benefits from the Lync effect This column always tries to bring you the latest leading-edge technology and what such innovations can offer in these still uncertain times.

Especially when it comes to showing how high-tech developments can have a significant “interconnecting” impact on human wellbeing and society, to the enduring benefit of the economy, environment and people’s lives.

One such innovation is the groundbreaking partnership between InterCall Conferencing Services Ltd and Microsoft, which has seen the software company’s next-generation cloud communications service, Lync Online, rolled out as integral to a national single supplier framework for web conferences covering Scotland’s public sector.

The Scottish Government says it conducted a robust and comprehensive tender selection process, in line with European Union public procurement regulations, before finally awarding this two-year contract with an option to extend it for a further two years.

It promises to provide best value for money, with circa 25 per cent in savings compared with ad hoc service providers it has replaced. The program involves the very latest of technology available in the global marketplace.

This includes cutting-edge web and audio conference and webinar services that enable events and meetings to be shared across remote locations by telephone, desktop or laptop. Back-up implementation and free online training plus change management/helpdesk support is ensuring a smooth implementation of the program.

Using many of the Office 365 features, Lync is utilised to the fore in key features such as slide show presentations, live or streaming video, real-time audio integration, web tours, meeting recording facilities, the potential for public text chat, polls and surveys, together with screen/desktop/application sharing, Outlook and other diary system integration plus webinars. You name it, the option’s available.

These services are available to all Scottish public bodies including central government, fire and rescue services, local authorities, universities and colleges, the police, National Health Services Scotland and Scottish third sector bodies including registered charities and voluntary organisations.

The web conferencing service is already starting to prove its worth in terms of realising more efficient communication through speedier decision-making and getting the right people together quicker.

When this is taken together with reduced travel and all the time and money savings this brings, carbon footprint reductions and enhancing the work/life balance and increased productivity through better use of time and effort for those engaged in the framework, you have a program that delivers across the board benefits.

InterCall is maintaining data storage associated with the Scottish initiative in its secure CRM “ACE” Informix database centre in Valley, AL USA, supported by

22 | IoD Scotland Spring 2013

Microsoft’s data centres located in Dublin and Amsterdam as its Lync Online connects people in new ways, anytime, from virtually anywhere in a cost and time-effective manner round-the-clock, every single day of the year.

Why Microsoft Lync?

From controlling costs to managing compliance, Lync delivers value meeting the needs of an organisation whatever its size. Its Voice over IP (VoIP) enables communications among geographically dispersed company locations without long distance charges. A seamless integration of audio, video and web conferencing helps reduce travel costs as well as the cost of third-party conferencing solutions.

Significant improvements in productivity are promised as a rich presence information helps your employees find each other and choose the most effective way to communicate at any given time. Instead of e-mailing documents back and forth for approval, they can rely on real-time collaboration through enhanced conferencing.

We’re talking about desktop, application and virtual

whiteboard sharing, or contacting a collaborator from within Microsoft Office or other applications providing access to enterprise voice, enterprise messaging and conferencing from one simplified interface.

Added to this, mobile workers get access to rich unified communications tools from practically anywhere with an internet connection while the company gains operational efficiencies and can be more responsive to customers, partners and employees while maintaining regulatory compliance at all times.

A technological no-brainer if ever I saw one...

Catch my Daily TechPost (most days!) on Twitter #billamagee and regular tech microblog at www.Kiltr.com/

by Bill Magee Scottish Business Technology Writer of the Year

“Web conferencing is already starting to prove its worth in terms of realising more efficient communication through speedier decision-making and getting the right people together quicker...”

Feet on the ground with eyes to the cloud The concept of Cloud computing is no longer on the horizon it’s right on top of the business community and is here to stay.

It brings with it a host of possible benefits – but there’s a few tough questions you have to ask first to make sure it meets your business’s aspirations, says Scott McGlinchey of Exception Ltd It’s far from easy to balance the pressure of reducing costs and improving services while making your business more agile, especially in these changing economic times. It brings to mind the analogy of changing the wheels while you’re driving the car.

And when it comes to an organisation’s critically sensitive information, the thought of entrusting such vital and valuable strategic assets to a third party, and via the largely unfettered internet at that, is enough to stifle such thoughts, or cease any such technology initiatives.

However, there do exist technology strategies, tools and approaches that can make your IT more effective and efficient.

One such technology is Cloud computing.

Cloud has become big business - the 451 Market Monitor, building on previous IT industry analysts IDC, Forrester and Gartner reports, reveals a significant rise in the cloud market value, with an annual growth rate of 24 per cent.

That’s tens of billions of dollars and in the UK, industry watchers say that around half of all CIOs are already using Cloud technologies.

Cloud can greatly benefit businesses.

How? It can help you to cut costs, provide increased flexibility to meet change and support

innovation and enhanced speed to market. Yet what’s apparent is there remains many real, or perceived, issues surrounding the Cloud given its relative immaturity. In particular, there are issues around security and its appropriateness for some businesses or public entities.

It’s a vast subject.

Broadly, there are three Cloud models, the most common of which today is the Public Cloud, where a service provider makes resources available to business and consumers, typically offering the most cost-effective solution, with the least amount of management overhead.

A Private Cloud is internal to the organisation and most of the time used exclusively to run its core and critical applications, and it is managed by the organisation establishing it.

The Hybrid Cloud is a combination of both and gives you the choice of putting critical and core applications in a Private Cloud with other applications in a Public Cloud, and allows the Public Cloud to be used to cater for peaks in demand.

For assessing the most appropriate options for your organisation it’s important that you get expert advice and make sure the benefits of the

Cloud are aligned to your business.

A further related consideration in this fast moving online environment is the recent steep increase in staff wanting to use their own mobiles and tablets at work. This phenomenon, labelled by the technology industry as “Bring Your Own Device” (BYOD), is creating a growing concern for businesses, as employees can access and store company data with the very same mobile they use as a consumer on public Wi-Fi. One leading global technology company estimates that upwards of 60 per cent of organisations remain unsure of the devices connecting to their network.

What is certain is the Cloud and BYOD are here to stay - a Microsoft-sponsored Harvard Business Review Analytic Services survey of 1,500 global business and technology leaders shows that 85 per cent plan to use Cloud-based tools between now and 2014, to make their business adapt and respond better to changes while reducing overall business costs.

My advice would be to review and consider how Cloud computing could fit with your current IT investments, ensure you undertake thorough due diligence checks and balances through a trusted partner before embarking on any Cloud journey, and have a clear policy together with the right tools to manage the growing proliferation of mobile devices.

You can’t stop mobile but you can manage the impact on your business.

• Scott McGlinchey is chief officer for Exception Limited, an IT Consultancy and Services Company (www.exceptionuk.com)

IoD Scotland Spring 2013 | 23

Financial advice

New pension limits impact on directors’ retirement plans Key points: • From 6 April 2014 the Annual Allowance and Lifetime Allowance are expected to reduce to £40,000 and £1.25million respectively • More individuals will be caught by the lower allowances and they should consider whether any tax planning advice is required • Fixed Protection will be available from Summer 2013 for individuals likely to exceed the revised Lifetime Allowance • The Government is consulting on whether to offer a Personalised Protection regime • Important to take specialist advice about the changes

Recent changes to the pensions landscape in the UK could have a considerable impact on directors’ retirement plans, says Bhargaw Buddhdev, Partner, Executive Pensions, Barnett Waddingham LLP Changes to the Annual Allowance and Lifetime Allowance Contributions to occupational pension schemes are set to rise as many employers revise their existing occupational pension arrangements to comply with the new auto-enrolment legislation. This will increase the number of low earners paying contributions.

However, for higher earners, it seems that when it comes to pension contributions you can have too much of a good thing, as demonstrated by the Chancellor’s Autumn Statement which included proposals to further reduce the annual limits on tax relievable pension contributions and overall lifetime pension savings.

Autumn Statement: Changes in detail The Chancellor has announced that he intends to introduce legislation which is expected to come into force from 6 April 2014, to make the following changes.

From 6 April 2014: The Annual Allowance (AA) will be reduced from £50,000 to £40,000, which is the maximum amount of contributions an individual can make in a single year before any tax charge.

The Lifetime Allowance (LTA) will be reduced from £1.5million to £1.25million, which is the maximum amount of pension savings an individual can accumulate over their lifetime before any tax charge.

For comparing defined benefit (DB) pensions against the AA, each £1 of pension will continue to be valued at £16.

Bhargaw Buddhdev

24 | IoD Scotland Spring 2013

Cutting back Although a large proportion of members in pension schemes will be unaffected by these limits, company directors and executives are likely to find that the new limits will impact on their retirement planning. The changes follow a recent trend by the Government of reducing the amount of tax privileged pension savings that individuals can make, with the proposed changes from April 2014 being the third re-write of the limits in eight years.

It would seem that the radical changes

introduced in 2006 to simplify pensions taxation has made it too simple for the Government to tinker with the limits!

Planning ahead The Government has started reducing the LTA and AA and this is likely to continue. It is important that employers regularly review the pension arrangements they offer to their senior staff.

With help from specialist pension advisers, employers should identify who is affected (or likely to be affected) and decide how to deal with the forthcoming changes.

It is possible to deal with defined contribution (DC) more easily than DB schemes. Possible options to mitigate the reduced AA limits can include: carrying forward unused AA from previous years, smoothing pay increases for pension accrual in DB schemes and companies offering supplemental cash payments designed to compensate for lower pension contributions and pensions in the future. Adapting to the reduced LTA will most likely require more detailed and holistic tax planning with the help of a specialist adviser.

Protecting your position Executives with pensions savings expected to exceed the LTA of £1.25m will be able to protect their savings from future tax charges and retain the current £1.5m savings limit instead but only if they agree to stop all pension savings from April 2014. The Government has also proposed to consult on ways to provide additional protection (Personalised Protection) to individuals up to the current £1.5m limit and still allow pension savings to continue after April 2014.

Checking life cover Lump sum benefit payments to a spouse or dependants via a pension scheme also count towards the LTA. Executives are recommended to check the total level of benefits payable in lump sum form on their death, which often include some form of life assurance cover, will not exceed the new LTA of £1.25m after April 2014 to prevent any tax charge arising.

Life cover set up outside of the pension framework does not count towards the LTA and so this may become an attractive proposition for many executives.

About Bhargaw Buddhdev

Bhargaw is a partner at Barnett Waddingham, Actuaries and Consultants and heads the firm’s Executive Pensions Practice. He specialises in advising companies and remuneration committees on pension arrangements for their senior executives. He also advises senior executives on their options, both while accumulating their pension funds and when they reach retirement. He can be contacted on bhargaw.buddhdev@barnett-waddingham.co.uk

Acting as one team The UK’s largest independent provider of actuarial, administration and consultancy services Our services include: • Corporate Consulting

How to contact us

• Employee Benefits

• Investment Consulting

Barnett Waddingham LLP 163 West George Street Glasgow G2 2JJ

• Longevity Consulting

0141 243 4400

• Insurance Consulting

• Pension Administration • Private Clients (inc SIPPs, SSAS, Executive Pensions & Investments)

@

info@barnett-waddingham.co.uk www.barnett-waddingham.co.uk

• Public Sector Consulting • Trustee Consulting

Barnett Waddingham LLP is authorised and regulated by the Financial Services Authority and is licensed by the Institute and Faculty of Actuaries for a range of investment business activities

AMERSHAM | BROMSGROVE | CHELTENHAM | GLASGOW | LEEDS | LIVERPOOL | LONDON

Leadership in business

The leadership challenge A debate organised by the Henley-Aberdeen Partnership offers a clear path on what employees look for from their leaders – and how businesses can develop better leadership strategies Failures in leadership have been the focus of many column inches in the press over the past three years, with many coming under fire for a lack of motivational and ethical leadership. So how do we turn the tide? And how do we know what constitutes ‘good’ and ‘bad’ leadership?

The Henley-Aberdeen Partnership recently held a leadership debate to discuss these issues.

The panel, comprising of Dr James Smith, former Chairman of Shell UK; Brigadier George Louder, Director for Defence Intelligence Fusion Centre (Afghanistan) and head of 51st (Scottish) Brigade; Dr Lesley Sawers, Chief Executive of the SCDI, and Professor Anne Glover, Chief Scientific Adviser to the President (European Commission) were joined by Chair, Dr Peter Davis.

At the event, the following themes emerged as key to great leadership: trust, empowerment and inspiration.

In order to be great leaders we must first gain the trust of our followers. The level of trust in business relationships is a greater determinant of success than anything else. The panel concluded that trust has two key components – competency and decency. This relates to the principles related to trustworthy behaviour.

These are: • A focus on the other (client, customer, internal co-worker) for the other’s sake, not just as a means to one’s own ends.

• A collaborative approach to relationships.

• A medium-to-long-term relationship perspective, not a short-term transactional focus.

• A habit of being transparent in all one’s dealings.

Trust is a key management challenge in collaborative working. To be an effective leader, we need to inspire trust in our followers to encourage collaboration, and to share and generate new ideas.

Without collaboration, businesses do not grow or diversify in times of difficulty.

“We achieve when we collaborate” – Dr James Smith.

Another key theme was the empowerment of

26 | IoD Scotland Spring 2013

Professor Anne Glover

your employees or followers to take risks, make judgement calls and to learn from mistakes.

“A good leader prevents people from making the same mistake twice” – Professor Anne Glover A good leader does not cultivate a ‘blame culture’ but a ‘risk aware’ culture. A blame culture is defined as a set of attitudes such as those within a particular organisation, which is characterised by an unwillingness to take risks or to accept responsibility for mistakes. As leaders we should be supporting a ‘risk aware’ culture within our organisations, taking the blame as leaders for when risks do not pay off, and enabling our workforce to promote, grow and develop our business through their own capabilities.

“We are now witnessing a severe failure in inspirational leadership” – Dr Lesley Sawers.

Dr James Smith

When we think back to the leaders who we learnt the most from in our careers, we inevitably return to someone who inspired, motivated and encouraged us. Without them, we wouldn’t be the business leaders we are today.

So what legacy are we leaving for the next generation of business leaders? Currently, many at the top of the pyramid are effective managers but lack vision and the ability to inspire others.

Employees are drawn to inspirational leaders, so in order to get the best talent to grow and develop our business, we must be able to inspire those around us. The Chartered Management Institute identifies six recurring features of inspirational leaders.

They genuinely care: they approach work and their colleagues with honesty. They both inspire and invest trust.

They involve everybody: offering people the support they need to be effective, and the freedom to put it into practice.

They listen a lot: to peers, subordinates and customers.

Brigadier George Louder

Dr Lesley Sawers They show lots of appreciation: including small gestures.

They ensure work is fun: by celebrating achievement and by rewarding effort and commitment.

Along with their people, they are deeply committed: they are passionate about the organisation and its work, and always looking for opportunities to improve.

In summary, the panel concluded there were five ways to become a great leader: Inspire a shared vision – believe you can make a difference and communicate your vision to others; Challenge the status quo – making mistakes is part of learning, so enable yourself and your employees to take risks to grow your business; Show the way – be the example for your organisation; Enable others to act – build trust and encourage collaboration; Create the will – recognise and reward those who follow your example.

Want to know more?

The Henley-Aberdeen Partnership provides world-class executive education to organisations across Scotland. To learn more go to www.abdn. ac.uk/henley-aberdeen or to speak to one of the team call 01224 273721 or email henley-aberdeen@ abdn.ac.uk

IoD urges members to take Bribery Act training Members have been urged to act now to ensure you’re compliant with the new bribery regulations laid down in the Bribery Act 2010, or risk serious penalties and lost business. Two bribery investigations are already taking place in Scotland and the Crown Office has confirmed more will follow.

The Serious Fraud Office (SFO) has reminded shareholders and investors to satisfy themselves with the business practices of the companies they invest in. The SFO has already used the Proceeds of Crime Act to recover money from investors who have benefitted from illegal activity. Consequently, any organisation that does not have robust anti-corruption policies in place could face awkward questions from shareholders and investors.

IoD Scotland and E-Security Exchange Ltd are offering members access to e-learning units that offer practical assistance towards compliance with the Bribery Act 2010. Evidence of compliance is required of organisations wishing to tender/continue with public sector contracts as well as government and large private sector contracts.

The competitively-priced e-learning modules are written by directors for directors. They’re easy to follow and examine typical scenarios where organisations may be exposed to the risk of bribery.

The units contain case studies from a wide range of organisations and offer guidance on how the act is being implemented in Scotland.

E-Security Exchange has produced the e-learning in association with Interchange Solutions, IoD Scotland and Shepherd and Wedderburn Solicitors LLP. The units are entitled ‘Business Ethics and Bribery Act Compliance’ as they explore the potential consequences of weak business ethics across various jurisdictions as well as the importance of Bribery Act compliance.

Want to know more?

There’s more details on the IoD Scotland website at http://www.iodscotland.com/bribery-act-training, where there is an introductory video for you to watch.

IoD Scotland Spring 2013 | 27

The business of charity

Charity begins… with a business-like approach Being asked to join the board of a local charity is a great honour, one that brings prestige, a higher profile and gives directors a chance to put something back into their community. But it also comes with responsibilities, says Fiona Watson of Scott-Moncrieff For some directors, being asked to sit on the board of a charity is a mark of corporate success, for others it’s a way to ‘give back’, for some it’s a route to better networking and increased profile.

Whatever the reason for joining a charity board, there is usually some amount of altruism involved. However, sitting on the board of a charity isn’t just a virtuous thing to do. It’s a serious undertaking. Legislation and regulation surrounding governance is becoming more explicit emanating from the Office of the Scottish Charity Regulator (OSCR) or the Charities Commission (in England and Wales). Amid reviews and investigations, and within a changing culture where charities are running a much tighter ship, the responsibilities of trustees are more explicit, and more keenly felt, than ever before.

All this is not to say that becoming a charity trustee should be avoided – just as being a director of a limited company shouldn’t. The rewards are great, but those considering it have to go in with their eyes open to the risks and responsibilities and be prepared to take an active role.

Over the past few years, the recession has hit the third sector hard, and some very difficult decisions have had to be made.

Charities have gone into liquidation in greater numbers, potentially leaving trustees, in some cases, personally liable for shortfalls, not to mention the reputational fallout.

This is just the time when directors can use

28 | IoD Scotland Spring 2013

their commercial mind-set to benefit charities that need guidance.

There are around 23,000 charities in Scotland. The one thing they have in common is that they are all covered by the Charities and Trustee Investment (Scotland) Act 2005.

This legislation sets out the duties of charitable trustees in the realms of statutory reporting to the regulator, duties in managing the charity’s financial affairs, acting in the interest of the charity and in accordance with its constitution, and duties to exercise care and skill, and take advice where appropriate.

It is important to note that it isn’t the trustees’ responsibility to actually deliver these things – but to ensure that they are delivered with the best of care and under the appropriate advice.

This heightened awareness of responsibility underlines the requirement for a professional standard of pro-active accounting for both decision-making and statutory reporting within the charitable sector. In order to both make informed decisions, and be seen to be making informed decisions, the charity

trustee is wise to ensure that appropriate reports are available and considered, and that the decision-making process is documented and retained securely.

The third sector benefits from the continued support of the corporate world, in terms of their independence of thought and guidance. Whatever your reason for becoming a charity trustee, it is common sense to be aware of the potential implications – both financial and reputational. As with any corporate deal, the devil’s in the detail, so make sure you do your homework.

• Fiona Watson is manager of the charity accounting services at Scott-Moncrieff, Scotland’s leading advisor to the charitable sector.

Scott-Moncrieff, in association with DWF Biggart Baillie LLP, is running a seminar examining the issues facing charity trustees with faith-based organisations, on Friday 1 March, in Edinburgh. For more information, please visit www.scottmoncrieff.com/news_and_views

“This heightened awareness of responsibility underlines the requirement for a professional standard of pro-active accounting for both decision-making and statutory reporting within the charitable sector...”

Beyond CSR: business in a new era as it measures its impact on the world

Want to know more?

For more details on developments in this sector, contact Penny Morriss, Forth Sector Development, on penny.morriss@ forthsector. org.uk

Last year, public sector spending on goods and services across Scotland exceeded £9 billion. Access to this public sector spending is critical to the success of Scottish businesses. Until now, companies that could demonstrate value for money through high quality and low cost stood a good chance of doing business with the public sector.

Now, as a result of policy changes at national and UK level, the priorities in public sector procurement are about to change.

The Scottish Government is in the process of introducing a Procurement Reform Bill that will place emphasis on the procurement of environmentally sustainable, socially responsible and innovative goods, services and works.

This mirrors the UK Government’s Social Value Act that came into force in January this year. For the first time, public bodies have a duty to consider the delivery of social value through procurement. Companies wishing to do business with the public sector in Scotland, and across the UK, must demonstrate their ability to deliver social benefits.

Participation in public sector markets is not the only force driving companies to consider their social value. Consumers have become more discerning and seek organisations that demonstrate social responsibility; socially progressive companies are at an advantage when it comes to the recruitment and retention of staff, and the ethical behaviour of companies can have a significant effect on shareholder value. Companies that can create and demonstrate social value now have a competitive advantage while delivering ‘business for good’.

Successful businesses understand the imperative of managing operational and financial performance. Quality processes and standards abound. The need to improve business process to deliver better results is well understood.

However, what about the other ‘results’ of conducting business: the social, environmental and economic impacts business has on their communities, and to society as a whole? How can business better understand and manage

‘social performance’ to its best advantage in a changing marketplace?

Often, companies understand their corporate social responsibility as something external to the fundamental objectives and everyday activities of the business, developing CSR strategies designed to deliver marketable headlines about reducing waste through recycling or increasing charitable giving.

Though these programmes undoubtedly deliver a degree of social value, they can sometimes leave the business open to accusations of ‘green wash’ by consumers, and will certainly not meet the expectations on social value demanded by changing public sector procurement legislation.

Businesses that can meet the challenges of the new procurement environment will be those that manage their social performance in the same way they manage business performance. A social performance approach requires businesses to understand and articulate their role in society: to define social relationships beyond ‘customer, supplier, and staff ’, and to consider the impact everyday activities have on a broader family of stakeholders.

What benefits do everyday activities deliver to people in the local community? Are there opportunities to do more of this, or to deliver these benefits to a wider range of people?

And what might be the negative impacts of your activities on people?

Is there anything simple you can do to minimise the negative, and increase the positive?

Social Performance Management is about understanding the impacts of what you do everyday for people and the environment around you, so you can act in ways that benefit your business and create social value for everyone. Being able to talk about the good stuff your business does might always have been useful. These days, being able to quantify, measure, manage and communicate the social value your business creates is essential.

IoD Scotland Spring 2013 | 29

PR & Media

Hard-won reputations were the losers in the horse meat scandal The horse meat scandal highlights how easy it is for even the slickest business to lose the public’s confidence and trust, says Ken McEwen It may have created a field day for comedians and those with Photoshop skills, but the horse meat scandal is a very serious matter that has shaken our faith in some of the country’s best-known brands.

Many of us will have sniggered when we saw photographs of a horse lying across the self-service checkouts with the message “unexpected item in the bagging area”, or the doctored Findus “Beef Lasag-neigh” packaging.

But, behind the laughter, this is a scandal that has inflicted serious damage to customer trust, not just in the brands directly affected, but in the wider food processing and retailing industry.

Some have sought to point out that eating horse meat is quite acceptable in many fellow EU countries. But that completely misses the point.

No matter what price pressure manufacturers or retailers are under, there can be no excuse for illegally passing off a cheaper product as something else. It seems likely that prosecutions, fines and, possibly, jail sentences will follow.

Not surprisingly, as the story unfolds, many are questioning whether the horse meat scandal is just the tip of the iceberg.

It is not often that we turn to Government for a succinct summing up but the House of Commons’ Food and Rural Affairs Committee hit the nail on the head: “It seems improbable,” they say, “that individuals prepared to pass horsemeat off as beef, illegally, are applying the high hygiene standards rightly required in the food production industry.” For our food industries, who have worked hard to build up trust, this is a hammer blow.

The storyline has been that producers and retailers could trace their supply chain right back to the individual farm.

To reinforce this image we have been presented with packaging that carries pictures of producers. The horse meat scandal makes us question the reality.

Apart from the damage to hard-won reputations, there are also very obvious financial consequences.

In the aftermath of the first revelation about horse meat in burgers, £300 million was wiped off the value of Tesco. It comes at a bad time as the supermarket fights to retain its market share against rivals.

For Findus, too, the revelations could hardly come at a worse time. The Findus Group agreed a major restructuring and £220 million cash injection late last year.

Ironically one of the cuts Findus made, as it fought to reduce its financial losses, was to dispense with its senior UK PR people. That may now seem like a false economy.

Research suggests that the whole sorry affair has changed our priorities and our buying patterns.

Presumably fuelled by concern about the origins of the meat slurry that goes into producing cheap burgers and ready meals, research has found that quality now figures much higher on our priorities.

A survey by PR Week/OnePoll found that quality now rates above price among shoppers. Perhaps surprisingly, it is 18-24 year-olds who seem to be leading this trend, with 31% of them having voted with their feet and changed where they shop.

A more recent poll by YouGov for Sky News echoes these results. It found that one-in-five people have changed the way they shop as a result of the scandal.

If there is a silver lining on this cloud, it comes with anecdotal evidence that traditional family butchers are seeing an increase in business. I am not surprised.

As a family we have been buying all our meat products from the local butcher for some time. We find the quality is better and we trust his supply chain, for the good reason that we pass the farms every day.

A hand-written sign for his pork proudly proclaims “Food miles = 9”.

Not only is that good for quality, it is also good for the environment and the local economy!

“A recent poll by YouGov for Sky News... found that one-in-five people have changed the way they shop as a result of the scandal... it seems to be 18-24-year-olds leading this trend...”

30 | IoD Scotland Spring 2013

• Ken McEwen, the past chairman of IoD Aberdeen, has his own PR consultancy business - Ken McEwen Public Relations.

See www. kenmcewen.com for more details

Returnships: the new way to make more of experience

by Laura Gordon Could Scottish businesses be missing a trick?

As a coach I work with leaders of all ages and backgrounds. But more and more I’m approached by people who, for one reason or another, perhaps childcare breaks, extended maternity or paternity leave, time abroad or illness, are looking to return to work and forge new careers or pick up on previous ones.

In 2008 Goldman Sachs coined the phrase ‘Returnships’ to categorise such workers, and in November last year the Harvard Business Review reported on the case of Kathy Bayert, who holds an MBA from Northwestern’s Kellogg School and had forged a great career at IBM and PricewaterhouseCoopers. In 2003 she took a five-year career break to stay home with her two children. Looking to return to work at age 42, she found that the gap on her CV was the least of her problems – the economy was plummeting into recession. She then discovered Sara Lee was advertising a “returnship.” It turned out that the opening was a short-term paid position designed for a professional who’d been out of the workforce for several years – basically, an internship for an experienced worker whose time off might scare recruiters away. Bayert applied, was accepted, and signed on. After her initial six-month assignment, she was hired as a senior manager of organisational effectiveness. The programme, she says, was “critical as a springboard back into the workforce.”

Scottish businesses, challenged with the costs of bringing in experienced and committed staff, could benefit enormously from this recruitment model. It is the chance to have an highly qualified, committed and experienced returner who just needs to brush up on latest working practices and can come straight in after an internship to hit the ground running.

Candidates are looking for the opportunity to ease their way back into their career and are willing to give their time, ideally paid, to a business for a fixed period proving their skillset to an employer and rebuilding confidence for them too. It’s a great opportunity for the

Older workers have huge amounts of experience and can be installed in your business quickly and efficiently

candidate to brush up on skills and for the business to trial a potential new addition to the team.

I mentioned this to a few of my clients, some of whom have had their children, supported their partners in their career path and are now ready to fulfil their own career aspirations. Unanimously they feel it’s an ideal way to get back on track. These are people who, compared to a graduate, are usually settled in their personal lives, fully committed and focused on their career with life experience as their differentiator, usually better communicators, used to teamwork and juggling all manner of challenges.

People are what makes a business tick and can be the differentiator for success in a competitive landscape, especially in recessionary periods.

Anne McLister, an experienced programme and change manager with a background in management consultancy and project delivery, has spent the last five years in the United States as an “accompanying spouse and homemaker for her young family”. She believes that the concept of the ‘returnship’ is advantageous to both the individual and to businesses as a way of recruiting quality candidates, for what is essentially a kind of probationary period. “Having settled back in Scotland I am now ready to restart my career and I would welcome a ‘returnship-style’ opportunity. This ‘trial’ engagement would enable me to get back to my previous level of business performance and demonstrate value; and provides the employer with a period to assess my fit within the organisation.”

With the need to work later into what was traditionally retirement, we are experiencing a high standard of skills and expertise across all sectors from exceptional 40+ individuals offering at least another 20 years of service, but they are often unappreciated and disregarded.

It seems to me that the opportunities for Scottish businesses in following Goldman Sachs’ example and creating returnships makes a lot of sense, for Anne and for many other highly experienced workers across the UK. • Laura Gordon, chair of IoD Glasgow and West of Scotland, is a consultant and leadership coach with Corporate Connections International

Time running out for 0% energy-saving loans IoD members are being urged to act quickly to take advantage of 0% Scottish Government loans to reduce energy bills. Join the renewables revolution and save money as fuel bills soar.

Install technology such as wood-fuelled

boilers or heat pumps and get an interest-free Scottish Government Home Renewables Loan of up to a £10,000 to spread the cost. But hurry… loans are currently only available until March so claim the cash while you can.

Free impartial guidance from a specialist

Home Renewables Advisor is available to help you choose a system which is right for you and your home and put you in touch with a certified renewables installer. For more information, call Energy Saving Scotland on 0800 512 012 or see bit.ly/X7A7d7.

IoD Scotland Spring 2013 | 31

Qualifications are changing

Scottish Qualifications Authority are introducing new qualifications in Scotland to support Curriculum for Excellence.

The new Nationals, Highers and Advanced Highers will equip learners with the skills, knowledge and understanding they will need to succeed beyond the classroom in the 21st century.

The first National 1 to National 5 qualifications will commence from August 2013.

For more information visit www.sqa.org.uk/curriculumforexcellence