Iod scotland spring 2017 by Rob Beswick

Direction

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SPRING 2017: Events diary • DIRECTOR DEVELOPMENT • ADVICE AND INFORMATION • NEWS

The official membership magazine of the Institute of Directors in Scotland

Roz Cuschieri on why she’s happy leaving the big corporates behind

Up for the challenge

Director of the Year finalists announced • Improving Boardroom performance • Technical briefings

Welcome // Comment

IoD Scotland & Direction IoD Executive Director: David Watt

We need to change culture not just tick the right boxes

For email enquiries: iod.scotland@iod.com Web: www.iod.com

Executive comment: The current drive to improve Boardroom diversity must be more than just a numbers game, says IoD Scotland Chair Susan Deacon MIoD

Address: 10 Charlotte Square, Edinburgh EH2 4DR Tel: 0131 557 5488 Direction is the official membership magazine of the Institute of Directors Scotland and is published on its behalf by: Chamber Media Services, 4 Hilton Road, Bramhall, Stockport, Cheshire SK7 3AG Advertising sales: Colin Regan Tel: 07871 444922 Email: colinregan001@ yahoo.co.uk Production: Rob Beswick Tel: 0161 426 7957 / 07964 375216 Email: rob@chamber mediaservices.co.uk 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: Roz Cuschieri talks about life in the big corporates of the FMCG world - and her decision to leave it all behind for a life with start-ups. See page 10. Photo by Susie Lowe mail@susielowe.co.uk

hese days, there’s not a week goes by where I don’t receive a speaking invitation, event notification, link, post or request to comment about some aspect of boardroom diversity. In many ways that’s welcome. The fact that a growing number of leaders, businesses and the media are alive to this issue can only be a good thing. But what do we mean by diversity? How much progress are we really making? Are we thinking the right way? Doing the right things? Asking the right questions? Most importantly, how do we get beyond the jargon – and beyond the statistics? Are we changing culture and behaviours and not just being tokenistic? And are we seeing boardroom diversity as a means to a greater end and not just an end in itself? I’m not so daft as to attempt to answer all these questions in my brief musings here. But I truly believe we need to foster and promote more rounded and challenging discussions on this topic. Lest, as is all too often the case with the latest fad or fashion – or indeed any aspect of organisational change – we run the risk of failing to achieve the significant and lasting improvements which are needed. So what does the buzzword mean? At its simplest, diversity is about achieving a better mix; ensuring that there is a range of relevant skills, perspectives and experiences around the Board table. What that mix looks like will, and should, be different for every organisation depending on their needs and priorities. Every business, nominations committee or recruitment panel should think long and hard about what kind of people they need to steer their organisation now and in the future. Putting a strong and effective Board together takes time and is about much more than just getting a bunch of accomplished people together – albeit with a few more female or youthful faces than might have gone before. In a way it is astonishing that it has taken so long for a consensus to emerge that Boardroom diversity is important. The idea that a small pool of people, with

‘As I’ve often argued, there’s not much point in just creating “an old girls’ club” alongside the “old boys” one. In short, the gene pool from which directors are drawn needs to be widened...’

broadly the same background and characteristics, often drawn from within a relatively narrow circle of relationships – however able they might be – can provide the insight and challenge required to drive an effective modern organisation seems quite bizarre. Yet, though things are changing, if you look at the composition of all sorts of Boards and governing bodies, many are still drawn from quite a limited demographic. And by that I don’t just mean the ‘visible’ aspects of diversity such as gender balance, age range or ethnic mix, but real, tailored, textured and nuanced diversity of perspectives and backgrounds – some of which might not be so immediately apparent. Indeed, valuing different types of skills, capabilities and career and life experiences – especially when it comes to the appointment of non-executive directors – is vital and is one of the key things that can really change and enrich a Boardroom. In truth, I worry about there being too much of a focus on numbers, rather than on deeper changes in culture and behaviour in the Boardroom, the workplace and, indeed, wider society. Percentages can be a very narrow lens through which to view change. Of course, I recognise that measurement and reporting can be a driver for change but without due care, attention and scrutiny it can also tip over to being an exercise in ticking boxes and tokenism, or can simply skew effort too much in one direction. For example, the drive to get more women in the Boardroom has, in some cases, resulted in big shifts in the gender balance of non-executive appointments but not necessarily the executive director pipeline. Top-down quotas run the risk of being – or at least being accused or perceived as being – more about quantity than quality. And an emphasis on numbers can mask a lack of wider diversity. As I’ve often argued, there’s not much point in just creating ‘an old girls club’ alongside the ‘old boys’ one. In short, the gene pool from which all directors are drawn needs to be widened. Alongside the well-rehearsed arguments that more balanced Boards make for better business outcomes, there’s a big ticket external issue too – and that is about rebuilding confidence and trust in business and institutions. As is increasingly coming to the fore, there are serious fault lines running through our society, between those who do and don’t have power, influence, education and wealth. Having Boardrooms that are more reflective of, and sensitive to, the needs and views of people from a variety of walks of life could play an important part in narrowing some of these gaps. WWW.IOD.COM

Executive comment: Outside influence is no match for good governance in Scotland’s boardrooms, and bigger isn’t always better, says IoD Scotland executive director, David Watt.

‘C

orporate governance’ is a term often used, and more often abused. The underlying principle is that corporate governance should be ‘the framework of rules and practices by which a board of directors ensures accountability, fairness, and transparency in a company’s relationship with all its stakeholders’. In practice, it is that the governing body (the Board) of any organisation has in place mechanisms to ensure that what has been agreed to be done is being done: governance is about delivery not just principle. In all sectors – private, voluntary and public – the board has a duty to have such systems in place and to receive reports on their effectiveness and progress. However, things can get complicated when external stakeholders try to influence the activities of an organisation. It is always dangerous when such pressures are exerted, as unintended consequences such as altered market profile or increased media scrutiny can adversely affect the organisation and steer it away from its core purpose. Of course, there will be occasions when intervention is essential to prevent total meltdown, but these are rare and should not tempt politicians to believe that issuing a dictat is preferable to well-practised boardroom consideration and action. In Scotland, companies such as Alliance Trust and Standard Life have had to expend a great deal of time and money to fend off unwelcome interventions from vested interests to protect their chosen strategic direction. Equally, some universities, independently recognised as world-class institutions, have

IoD members share NXD experience at new Standard Life Trustee Development Workshops. Pictured are executive director David Watt with Caroline Stuart and Beth Corcoran – both portfolio NXDs – and Rosemary Agnew, the Scottish Information Commissioner

recently consumed a great deal of energy in resisting Scottish Government attempts to enforce certain strictures on their constitutions and governance. Now this desire to intervene has emerged in the review of the Enterprise agencies, where the early suggestion is to have one ‘super board’, not four, to oversee more than £2bn of public funding. Given the importance of these bodies and their activities, it is hard to see how they can be improved by increasing their size and complexity and it is extremely difficult to understand how moving the board further away from the ‘shop floor’ will help them deliver

their targets more effectively, or allow the directors to better ensure that they are doing what they are remitted to do – in this case to manage a detailed oversight of significant expenditure in the tens of millions. We all want better public service and a growing economy, driven in part by aligned and co-ordinated delivery by the various bodies involved. Amalgamating boards and distancing governance really does not seem the way to achieve progress – a view based on bitter experience witnessed across all sectors of Scottish civic life. Effective boards are all about scrutiny, challenge, and accountability, and it’s in these areas that the focus should lie.

IoD to lead new cyber security initiative for businesses IoD Scotland is pleased to announce it is joining a Scottish Government-supported initiative alongside the Scottish Business Resilience Centre (SBRC) to keep our members up-to-date with the latest advice, techniques and guidance on cyber resilience and trading securely. Through this initiative the IoD will develop awareness and guidance on cyber security for members. Four roadshows will be organised through 2017 which will feature ethical hackers, factsheets and film guidance clips. These roadshows will be free to members. Cyber security has never been more topical or more high profile – following in the close wake of

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the American Presidential elections, the topics of hacking and fake news have created an almost perfect storm of awareness. We have also recently seen the launch of the National Cyber Security Centre and with it, the start of a trusted relationship for advice, intelligence and messages for business and citizens across the UK. In Scotland, a year on from the launch of the Scottish Government’s Cyber Resilience Strategy we are seeing delivery fall within five main pillars: communications, skills, business enablement, research and public sector. What does this mean? It means that in the next few months Scotland will work to ensure that the

same communication messages go out at the same time, giving organisations and businesses greater foresight into this issue. Together we can start to co-ordinate and plan awareness of the five central themes behind cyber security: ransomware, DDos (denial of service attacks), personal and business data, child sexual exploitation and phishing prevention. Cyber security factsheets will be available on the IoD website ready for printing out for use within your own organisation as step one of own programme of cyber security guidance and awareness. Watch the IoD website for details on the roadshows.

News

New MD, and new trains, for ScotRail Alex Hynes, the current Managing Director of Arriva Rail North, is to be appointed Managing Director of the ScotRail Alliance, joining later this year to replace Phil Verster following the recent announcement of his move to head-up East West Rail. Hynes has nearly 20 years of industry experience, and has been Managing Director of the Northern franchise for the past three-and-a-half years where he successfully delivered its best customer satisfaction scores alongside positive employee engagement. He said: “I am delighted to have been appointed to lead the ScotRail Alliance, this cutting-edge arrangement, which brings together the management of ScotRail and Network Rail to deliver the very best for passengers. The ScotRail Alliance is delivering one of the largest programmes of investment, change and modernisation since the railway was built. To be part of that, and the plans to vastly improve services and capacity for customers, is hugely exciting for me.” Part of that investment programme is the impending arrival of a fleet of 70 faster, longer, greener trains to boost services in Scotland. These new electric trains are due to arrive from September, bringing faster and more comfortable journeys for customers across the central belt. ScotRail’s ‘class 385’ trains will bring some journey times down to 42 minutes between Edinburgh Waverley and Glasgow Queen Street – with more carriages and more seats (including a larger 20-seat first class section) at peak times from December 2018, delivering an increase in capacity of up to 44 per cent. The first of the 200 carriages have already arrived in the country, and is currently undergoing overnight testing, with the first expected to enter service on the main line from Edinburgh to Glasgow in September, followed by North Berwick, Dunbar, Stirling, Dunblane, Cumbernauld, Shotts and Glasgow suburban routes.

Find out more at www.scotrail.co.uk/ newtrains

Christine Esson and Russell Dalgleish scan the horizon for new opportunities for Scottish businesses

China, USA expansion on the cards for SBN The Scottish Business Network (SBN), which builds networks for Scottish business leaders in London, has announced plans to expand its activities to China and North America. Founded and run by Exolta Capital Partners managing partner and serial entrepreneur Russell Dalgleish MIoD, and economic development specialist, Christine Esson, who previously led Enterprise Ireland’s overseas team in the UK, SBN already numbers over 200 senior business figures in the city of London. While entrepreneurial activity in Scotland has increased markedly in recent years, research indicates that relatively few Scottish businesses are fully exploiting the opportunities

afforded by global markets. Russell said: “The traction gained in London last year was incredible and we quickly realised there was a strong demand for similar action-led, collaborative networks via the Scottish diaspora in China and North America. “Our primary purpose remains to first strengthen the London Network and then to expand our scope by reaching out onto the global Scottish business diaspora.” Christine Esson, co-founder of SBN, said: “Our USP is to have senior Scots with global experience willing to share their knowledge and expertise to accelerate and support the global ambitions of Scotland-based companies.”

Leah delighted with Appointedd global deal Edinburgh-based online booking software specialist Appointedd has secured a strategic partnership with AEVI, the provider of a global open eco-system for payment transactions and marketplace for value added apps and services. The link-up will see Appointedd’s scheduling software being made available to over half a million businesses worldwide. Appointedd’s founder and CEO, Leah Hutcheon, said: “At Appointedd, we’re passionate about supporting businesses to grow and flourish and this new partnership with AEVI exposes us to a wide range of businesses across the globe, enabling us to help them to scale their businesses. Appointedd can help SMEs streamline processes, grow their businesses and gain a competitive advantage.” WWW.IOD.COM

Business leaders help get Social Village off ground

Ready to brave the cold night are Sir Chris Hoy and Josh Littlejohn MBE of Social Bite Inset: One of the Village houses

A group of hardy Scottish business leaders who slept out overnight for Social Bite raised an immense £564,545 to build a village for homeless people in Edinburgh. Around 300 bosses slept outdoors in Edinburgh’s Charlotte Square, including many IoD members, and our very own Executive Director, David Watt. Social Bite had planned to raise £500k, to create 10 purpose-built homes in Granton, Edinburgh, for up to 20 homeless and vulnerable people. Work is expected to begin on the project soon, with the first residents moving in by the summer. The Village project will be run by Social Bite along with EDI Group and City of Edinburgh Council.

Converge Challenge 2017 on hunt for new entrepreneurs In the last issue of Direction, we reported on the winners of the 2016 Converge Challenge. Now the quest to find the next generation of entrepreneurs from Scotland’s thriving academic entrepreneur community is underway once again. With a prize fund of up to £150,000, the support package also includes the opportunity to pitch to investors, business support services and access to the RBS Open Innovation Centre, and for those in the social enterprise category, support from Firstport, Scotland’s development agency for start-up social enterprises and entrepreneurs. Olga Kozlova, director of the Converge

Challenge, said: “This year every Scottish university is tasked with uncovering the next big idea and as a female entrepreneur I would like to personally encourage more women to apply in 2017. “Following an increase in applicants for both the KickStart and Social Enterprise award categories both prize funds have been increased to £10,000 encouraging entrepreneurship at every stage. “Converge Challenge remains committed to developing ambitious entrepreneurs and helping them build a valuable network of contacts that helps them to grow their business on a global stage. We are delighted to have the continued support of our entrepreneurial partners including Entrepreneurial Scotland who are providing broader networking opportunities for our winners.” Applications for the Converge Challenge 2017 are now. To enter, or for more information, visit www. convergechallenge.com. Entries close on Monday, 10th April at 5pm.

Converge Challenge in numbers:

240: Emerging Entrepreneurs trained between 2011-2015 62: Converge companies formed 39: Millions – of follow-on funding secured 80: Percentage of Converge companies still trading after three years 175: New jobs created by business established through Converge Challenge WWW.IOD.COM

Spectacular art on display at Charlotte Square The latest work of art to grace the walls of IoD Scotland at Charlotte Square is a spectacular and thought-provoking piece on loan from Scottish artist, Gavin Donaldson. Entitled ‘Saathee’, this latest work by Gavin, a graduate of the University of Dundee, is oil and charcoal on canvas, and explores identity and the relationship between the artist and others. It is on display in the Castle View room. See www.gavindonaldson.com

Downtime // Behind the desk with IoD Director General Stephen Martin

Relax:

2017: the year of the Staycation, anyone?

Voted the Number 1 European Island to visit by TripAdvisor, it’s not difficult to see why the Isle of Lewis consistently receives so much acclaim. Now the fabulously gothic Lews Castle, overlooking Stornoway harbour, is about to add to the island’s charms in a big way. Formerly serving as a grand home, a WW2 hospital, a college and a school, Lews Castle has been transformed into the latest luxury destination to be added to the Natural Retreats portfolio, already making it into The Guardian’s list of Top 20 Hotels opening in 2017. With public rooms, a storehouse café and an

outfitters’ retail store already open, the Castle also houses Museum nan Eilean, home to some of the world-famous Lewis Chessmen. The indulgent accommodation, from bedroom only to three-bedroom self-catering apartments, is set to open in April 2017. Not content with offering luxurious surroundings, every visit is also backed by a personal concierge service – a team of knowledgeable travel experts that can give local insight and recommendations for bespoke activities. Prices start from £110 per night, and can be booked now. www.naturalretreats.com

Gadgets:

The dust never settles on the tech sector

World in motion:

Autonomous testing comes to Europe It’s a journey you will take in your lifetime, though you might not believe it yet. You’ll be collected at your door by an autonomous [self-driving] electric vehicle (EV) that you don’t own, nor insure, and that arrives on demand via a voice-controlled personal assistant. That vision is getting closer with the very first autonomous vehicle testing in Europe being undertaken by Nissan, the main challenger to Tesla in the EV space. The brand will hold trials in the UK this spring, with its Leaf and Qashqai models being put through their paces between the brand’s London bases. If the growth of EV moves even half as fast as mobile phone technology did, get ready to hang up your car keys – and don’t even think about driving lessons for the kids of 2017.

In January, Las Vegas played host to the world’s largest annual gadget-fest – CES (Consumer Electronics Show). It’s here that tech-heads from all over the world come to show their wares, and find out what the next big thing will be. As it turns out, the next big thing is already with us – it’s the Amazon Echo, which appeared in many Christmas stockings last year. But, while many of us are using Alexa for music, sports, news, making shopping lists, finding the odd recipe and ordering take-away food, there’s much, much more to come. Sonos and Amazon have already announced a link-up for 2017, allowing you to connect your home devices, but at CES there were many more hook ups that will make the home a smarter place to be. It looks likely that Alexa’s getting the skills to control powerbots that do the hoovering; tech to allow you to speak to Alexa when you’re out and about; better voice-enabled TV technology, with the ability to ask Alexa to search for TV content; and if all that is too much, there’s even a bespoke skill so that Alexa can ‘coach’ you into a deep sleep. WWW.IOD.COM

The new man in charge of the IoD admits he is smartphonedependent, is most inspired by his wife and is only kept awake by his two young children Stephen Martin factfile 1966 1988 1992 1998 2000 2003 2004 2006 2017

Born, Belfast Graduates from Ulster University with a BSc in quantity surveying Westinghouse Security Systems. Joins as a quantity surveyor, promoted to the main board position of Commercial Director Kvaerner Metals Amey Rail MBA, London Business School Barhale Construction, Chief Executive Clugston Group, Group Chief Executive Institute of Directors, Director General

Name: Stephen Martin Position: Director General Company: Institute of Directors Number of employees: 200 Short overview of organisation Founded in 1903, the IoD is the UK’s longest-running membership body for professional leaders. Providing working space, training courses and networking events, as well as a voice within government, the IoD represents 34,000 directors from all sectors, across the country.

What is your long-term vision for the organisation that you lead?

I want the IoD to be the UK’s premier organisation for directors, not just in the quality of services we provide, but also as a voice for our members in the media, and in Government.

Even leaders aren’t the finished article. What’s next in your leadership development journey?

I’ve only just embarked on the next stage of my journey – taking over at the IoD. It’s an organisation with a great reputation, but as a non-profit membership body it’s also very different to the businesses I’ve run before in construction and engineering. I’m getting to grips with the different challenge of having to live up to the obligations of our Royal Charter, and working out how we can stay relevant to directors from all parts of the economy and the country.

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What piece of technology do you rely on most? My IoD smartphone. I’ve never had a job where my diary changes so often, or with such little notice – particularly when media interview requests come in – so being in constant contact with the IoD while I’m out at meetings is vital.

Who, or what, drives you or inspires you?

My wife. She has had to deal with a lot of change recently, moving down from Scunthorpe to just outside London and adapting to all of the early mornings and late nights that come with my new job. It has been big adjustment for both of us, particularly with a toddler and a baby in tow, and I couldn’t have done it without her supporting me and driving me on.

What keeps you awake at night?

My two young children! There are reasons for companies to feel uncertain at the moment, with a constant flow of news about Brexit, but, like most people in business, I don’t spend too much time worrying about things outside of my control.

Like most people in business, I don’t spend too much time worrying about things outside of my control.

I like to focus on what practical steps I can take, and I already have ideas for how I can make the IoD even better for members.

Have you had a mentor, and what did he/she add to your development?

I’ve been lucky to have several mentors over my career, but one who really stands out is Judy Lowe. She was a non-executive at Barhale, the civil engineering contractor, when I was chief executive. She is an extremely experienced director whose advice I have really valued over the years. We have stayed in contact since I left Barhale, and she even provided a reference when I went for the role of the IoD Director General.

What is the ‘next big thing’ that will transform your sector?

At the IoD, we try to look ahead to some of the big trends that our members are going to have to adapt to over the coming years. One of the biggest is automation. In the past, it has been physical labour that’s been taken over by machines, but in future it will increasingly be office jobs. This will be a big test for governments and companies, as they work out how to retrain people so they have the skills to get jobs in the new sectors that are developing.

What leadership advice would you give your younger self?

My main advice would be don’t play it safe and don’t be frightened of change. It’s better to make mistakes earlier in your career, so I would say go for every opportunity that comes along.

Spotlight: Roz Cuschieri: Chair, Emily Crisps and portfolio NXD

Chair of Emily Crisps Roz Cuschieri talks director development, the switch from life in big corporates to scaling up start-ups and why Scotland should celebrate its food and drink industry more. Words: Rob Beswick; pictures, Susie Lowe.

Genius spot, Hugh

he Greeks had a theory that good things come in threes. It’s a sentiment Roz Cuschieri would probably share, as her stellar career can be neatly divided into three sections: a long stretch in big corporates; a second period in smaller start-ups and growing businesses; and finally, the current stage – stage three, where the experience and knowledge gained from parts one and two are poured into non-executive roles. Today Roz sits as chair of Emily Crisps, an ambitious and growing business offering vegetable and fruit-based crisps, as well as advising Genius Foods where she was until recently chief executive. In addition, she holds three other board positions as she embarks on a portfolio career as a non-executive director. But where and when did all this start? In 1989, with a genius talent spotter from United Biscuits who knew precisely in which direction to point the young undergraduate sat in front of him. “I had studied science at Aberdeen University and attended the graduate job ‘Milk Round’, where I met Hugh Crawford, HR director at United Biscuits,” recalls Roz. “My plan was to take my science degree and apply it to a career in production but Hugh spotted something in me I didn’t realise existed. He said I had the attributes and skills to develop a commercial career. It’s not something I would have considered at the age of 20 but I owe him an enormous debt of gratitude as I had five wonderful years at UB – and he was right about the commercial side!” Hugh is first on the list when Roz hands out credit for her career, but there are plenty more people who she thanks for helping her along the way. “I’ve been really fortunate in that I’ve worked for some brilliant people and sat on a number of boards. Sir Bill Gammell, my chairman at Genius Foods, was both supportive and stretching. He had a saying – ‘if it’s to be, it’s up to me’ and that really resonated.” “Further back, I had 12 exhilarating years at Warburton’s [the Lancashire-based baker]. It is unusual as it is still a family business and now a huge company. I was with Warburton’s for 12

years, seven as commercial director, and in that time we grew the business from sitting outside the top 100 grocery brands to a position of No 2 behind only Coca Cola in grocery brand value. The commercial team grew from 16 when I arrived to over 180 and we’d gone from being a quality local player to a national one. “It was an incredible time to be with the business, helping to support such a growth agenda, and Jonathan Warburton was great to work for. He had a wonderful, no-nonsense northern sense of humour. At that stage in my career I was quite impulsive and Jonathan used to say to me ‘just sleep on it, reflect and consider’. It was good advice!” In between United Biscuits and Warburton’s was five fun years at brewers Scottish & Newcastle. “It got me back to Scotland – I’m an adopted Scot! – and it was an exciting time. I was working with some fabulous beer brands – Foster’s, Kronenbourg, among many – in my mid-20s. It was a great time to be involved.”

light years away in terms of size and structure. Why the jump? “I wanted to test myself, see whether or not I could run and build a business and move into something new. It was a very deliberate decision – could I leave the corporate world and test myself in smaller businesses?” As anyone who has ever made the same transition quickly discovers, there are huge differences between life in a corporate and life in a start-up. “I call it the ‘dishwasher rule’,” says Roz. “It doesn’t matter who you are, what your role is in the organisation, if you are the first in the office in the morning, it’s your job to empty the dishwasher. It is very grounding and summed up the culture of both Lightbody Ventures and Genius Foods. You roll your sleeves up and do what needs to be done. It is both energising and empowering.” While smaller businesses give you flexibility the lack of support can leave you vulnerable, too, a prospect that was both daunting and

“It is quite shocking when you come out of a large organisation and you find you don’t have the infrastructure or processes set out for you, but the more time I spent in that environment the more I enjoyed the excitement of writing my own scripts as to where you operate and how you operate.” But much as she loved life at these giants of the FMCG sector, she felt the need to move on. But the next challenges would be markedly different from life in the big corporates she was used to – effectively ending ‘stage one’ of Roz’s career and basing her permanently in Scotland. For her return north saw her work with two small but ambitious businesses: Lightbody Ventures – a growing brand marketing company in Glasgow which works with, among others, Thorntons, Hersheys, Annabel Karmel and Disney – and as chief executive of Genius Foods. The pair might have been operating in the same food and drink sector as the likes of Scottish & Newcastle and Warburton’s but were

exciting. “It is quite shocking when you come out of a large organisation and you find you don’t have the infrastructure or processes set out for you, but the more time I spent in that environment the more I enjoyed the excitement of writing my own scripts as to where you operate and how you operate.” This is where her experiences from the big corporates gave her the foundations on which to build a new career. “I took all the great things I’d learnt from the businesses I’d worked for and, in effect, introduced them to start-ups. “Start-ups are the type of businesses that really energise me.”

Continued on page 12

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I call it the dishwasher:: rule... it doesnâ&#x20AC;&#x2122;t matter:: what your role is in the:: organisation, if you are:: first in the office in the:: morning, your job is to:: empty the dishwasher...::

Roz Cuschieri with examples of Emily Crisps â&#x20AC;&#x201C; another new and exciting brand she has great plans for WWW.IOD.COM

Spotlight: Roz Cuschieri: Chair, Emily Crisps and portfolio NXD

“At Genius our people care very passionately about the products we make and it is important to create a cultural care across every part of the business.”

Continued from page 10 But while both Genius Foods and Lightbody Ventures have huge ambitions to grow and scale their businesses – goals that made them attractive to Roz in the first place – such ambition can create its own challenges: “In any growing business, balancing rate of growth with capability of the organisation is hugely difficult,” she points out. The need to lay solid foundations was made most apparent when she led Genius Foods to take the bold decision that transformed the business and brand. “We acquired two FreeFrom Bakeries in 2013. It was a hugely important move for the development of the businesses as it gave us control for the first time.” Up until then Genius Foods was a brandonly, asset-light business working with co-manufacturers who baked the loaves. “By acquiring the two bakeries we literally took control overnight of the development and quality agenda, plus the customer relationships: all important to brand success.” While hugely proud of the step change, it brought a host of challenges. “We went overnight from being a team of 21 to one of 435 – it was an interesting period to live through!” To make it work it was vital that a huge amount of planning was done beforehand. “We

invested a lot of time in our integration plan. I managed to persuade a number of seasoned experts who were experienced at integrating businesses to join us.” Mergers and takeovers often bring with them clashes of culture and bringing the bakeries into the Genius family presented the opportunity to introduce and embed the Genius culture across the manufacturing organisation. “At Genius our people care very passionately about the products we make and it is important to create a cultural care across every part of the business.

“When you’re in the thick of leading a fast-growing business, we all know that looking after your own development can slip down the priority list. You can’t let that happen”

“It’s been challenging but ultimately rewarding and successful. We are on a journey, certainly, but if I look at the things we’ve done since we took over the bakeries, the business has come an incredibly long way. ” Genius Foods offers another of Roz’s key guides through her career, as she has huge admiration for its founder, Lucinda BruceGardyne – not only for what she can do, but perhaps more interestingly, for what she can’t. “Lucinda is really tenacious and driven. She has an incredible understanding as to where her real strengths lie, which are in product development and the creation of amazing breads that had never existed before. She also knew that to grow and scale a business she needed to gather around her people who had the relevant experience, hence my appointment as CEO.” From one inspiring female entrepreneur to another, with her role as chair of Emily Crisps where founder Emily Wong has created a stunning range of healthy vegetable and fruit-based crisps in a story that is not dissimilar to Genius: an ambitious, niche player in a fast-growing market. “As chair, I wanted to bring the experience I gathered at Genius to play in Emily’s plans.” At Emily Crisps a small but heavyweight team is embarking on a very ambitious plan to growth the business – “the growth plans are eye-watering and very exciting,” admitted Roz. The company has UK-wide and international aspirations and it’s looking to grow the brand apace. Meeting the various challenges throughout her career has made it vital that Roz hasn’t neglected her own personal development as an executive, and it’s something she thinks all directors should make a priority. “When you’re in the thick of leading a fast-growing business, we all know that looking after your own development can slip down the priority list. However, you can’t let that happen; directors need to appreciate the value they can bring to their business from their own continuing professional development.” She believes that it is each director’s responsibility to not rest on their laurels once they reach the boardroom, but is the support they need out there? “Yes, I think the support

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is available but perhaps more could be done in helping directors access it. I have accessed help. Setting some time aside for leadership development is vital. “When I was appointed chair of Emily Crisps one of the first things I did was to register for the IoD’s Role of the Chair development programme. No one asked me to but it was something I felt I had to do. “I’ve sat on a number of boards and worked with fantastic chairmen, but in many ways I’ve learnt on the job. However, I’m the kind of person who needs to validate my position and what I’m doing; the IoD Role of the Chair course will allow me to do just that.” It’s not the only way Roz has improved her skill-set over the years. “When I was with Genius I joined the Rubicon Partnership; it’s an executive coaching partnership. We meet once a month – members are all chief execs and MDs – and we talk about business issues, we look at best practice in everything from strategy to cultural change and developing teams. Being able to sit with a group of peers who are not members of your executive team is very refreshing and allows you to be open about the specific issues you may be facing and hear different opinions from the group as to the best way forward.” What has impressed her as she has embarked on the ‘third stage’ of her career as a portfolio director has been the way other executives have freely given of their time to help her along the way. “I have been overwhelmed during the past few months by how much help I’ve been given. Up until now I’ve been building a portfolio career ‘Roz’s way’ but there are so many people taking different approaches. A number of people have given of their time freely and offered valuable advice. It shows that there is a wealth of talent out there that can support business leaders.” This support should include people below director level, too, and Roz is particularly keen to help start-ups: “Quite often entrepreneurs

“Growth plans for Emily Crisps are eye-watering and very exciting...”

and younger business leaders don’t need coaching; they need direct mentoring, someone with wider operational experience to show them the short cuts to get things done.” Roz’s enthusiasm for start-ups is evident and she believes Scotland is doing a good job in encouraging entrepreneurs – though with a caveat that causes her concern. “I think we’re good in Scotland at giving start-ups and entrepreneurs a chance but I’m worried that we don’t do enough to help them scale up. I think the biggest problem facing Scotland today is one of talent drain and talent development. Too many young people feel they need to go south to further their careers and we need to work harder to give them the opportunities they need in Scotland.” Roz believes that organisations such as the Saltire Foundation is one way this leak of talent can be stopped.“I’m a massive fan of what the Foundation is doing. At Genius Foods we’ve taken scholars on board and I’ve spoken at Saltire Fellows programmes. It’s all about taking young people, developing their skills and keeping them in Scotland.” The food and drink sector is vital to the Scottish economy yet Roz believes more can be done to promote its worth, and the opportunities that exist within the sector. “We

Next in the pipeline: promoting golf and supporting cancer charity So what’s next? Alongside her continuing role as Chair of Emily Crisps, Roz continues to be an advisor to Genius Foods and a non-executive director with Lightbody Ventures. Added to these three roles are two newer ones – and for once, outside her favoured sector. “I have taken on two Non-Executive Director positions, with Scottish Golf Ltd and Worldwide Cancer Research.” Golf – the favoured hobby? “No, interestingly enough. My son plays, and my mum, but I don’t. I’ve joined Scottish Golf as I want to help boost the number of people playing and make it a more family-friendly experience. We need to do more to encourage people to play – too many people drift away from the game as it takes too long to play and many simply don’t have the time. “Yet it is such a great game. My mother came to it later in life and the experience she has had has been brilliant – the

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know that oil and gas are critical to the economy but so is food and drink. It needs more support to encourage talent into it and keep it. “Scotland is famous for its food and drink. But where is the talent coming from to keep the sector alive? We need to do more to keep the talent pipeline full.” It perhaps doesn’t help that as a sector it can be regularly demonised by the media. “It makes me so cross to read one week, ‘don’t eat this’, the next week ‘you must eat that’. It’s demonising significant parts of the industry; we need to do more to encourage people to see the sector as a vibrant one that they can join.” If given the chance to run Scotland for the day this issue of nurturing talent would be high on Roz’s agenda: “I’d love to see more done to bring commerce and education closer together, to get the food and drink industry and the opportunities it offers on the curriculum in our colleges and universities. “When I was at Genius we began talking to Aberdeen University about how we can encourage talent and link it to the food and drink sector. “A career in the food industry is a great place to be – we need to do more to get that message across to young people.”

fresh air, the exercise, the new friends she’s made. We need to make more people aware of the huge positives and help position it as a family sport.” The role at Worldwide Cancer Research is her latest and one she takes up from March. “Finally, I’ve gone back to my science roots! It’s a great charity: it is different from the other wonderful cancer charities in that it specialises in funding research into early stage cancers across the globe. “Currently it has 151 research projects across 19 countries, and has funded more than £200m of pioneering research across the world. Unlike other charities it doesn’t have one particular institution it is linked to. Rather, it has a team of esteemed scientists who look at submissions from across the globe and decide on whether to fund them. “It is headquartered in St Andrews and it is a charity I feel very passionately about and, after 28 years working in the commercial space, it is something I really want to get involved with. If I can help secure more funding for it and raise its profile, that would be wonderful.”

Director of the Year Awards: Finalists

IoD awards celebrate the best of Scotland’s business leadership IoD Scotland Director of the Year Awards Venue: Crowne Plaza, Glasgow Date: Thursday, March 23 Tickets available from www.iod.com Dress code: Black tie/national dress

The shortlist of nominees for the 2016 IoD Scotland Director of the Year Awards has been announced. As in previous years, the judging panel was hugely impressed by the quality and diversity of applicants, and whittling the long list down has been an arduous task. Here we present the directors and other business leaders in the running for our coveted awards, plus details of how you can attend the awards ceremony itself on March 23 to congratulate our winners in person.

Director of the Year - Large Businesses Sheenagh Adams Registers of Scotland Sheenagh has been the driving force in delivering an ambitious three-year corporate plan for 2015-18, which includes embedding new legislation – the 2012 Act – into business operations; developing new products and services; working more quickly towards the completion of the land register and overseeing the completion of RoS’s digital transformation. At the same time efficiency savings have been delivered, and staff are thriving in the positive culture she has created.

Professor David Hillier Strathclyde Business School / University of Strathclyde

Since his appointment in 2015, David has led a transformational change in the Business School’s positioning and focus. As well as managing a £23 million redevelopment of the faculty, he has appointed a completely new leadership team and invested heavily in marketing and lean operating models that have boosted student numbers and enhanced teaching delivery.

Martin Dorchester David MacBrayne Ltd

Douglas Whyte Hydro Group plc

Martin has steered David MacBrayne through some challenging changes in the company’s operating landscape and several successful tender bids that have grown the business. His hands-on approach to negotiating and management has transformed employee relations and he has successfully devolved responsibility to such a point that all staff feel empowered to take key decisions independently.

Douglas has provided vision and direction for a business that’s going places. Significant investment in new products and services has bolstered growth in turnover, while overseas expansion has seen the business enter new markets, including Australia, Turkey, Vietnam and China. He has also driven investment in the development of its people and processes, enhancing the capability of the business to adapt to the challenging market conditions.

Alasdair Ferguson Ferguson Transport & Shipping Alasdair has established Ferguson Transport as one of Scotland’s top hauliers. The past 12 months have seen marked increases in staffing and a new management structure has enabled this growing business to handle customer expectations more effectively. Shrewd acquisitions and successful planning have cemented the business’s position as market leader.

Sponsors and supporters

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Director of the Year - Medium-size Businesses Jennifer MacKenzie-Hallwood TEFL Org UK

Michael Tait Shetland Mussels Ltd

Jennifer brings a clear strategic vision based on strong customer service values and quality products to TEFL Org UK. Year-on-year revenue growth of 28 per cent saw turnover hit £2m for the first time while its share of the UK market has grown exponentially in the past 12 months. The company’s support for its customers as they embark on a life-changing decision is testimony to her approach.

Michael has been driving the company’s performance and expansion plans over the last year, growing the business into the UK’s second largest mussel farm as part of an ambitious five-year expansion plan. Throughout he has retained a key eye on both staff development and the environmental impact of its activities.

Scott Mitchell The Royal College of Surgeons of Edinburgh Commercial Enterprises

Michael Young MBN Solutions

An innovator with a wealth of experience in the hospitality industry, Scott has been instrumental in transforming the college’s hotel. Turnover and profitability have soared as a result of his constant innovation, strong commercial focus and in-depth understanding of the market and its customers. He has empowered his team and is constantly searching for the best way to enhance the customer experience and boost service delivery.

Michael is the inspirational ‘front man’ for MBN Solutions, where he personally leads sales development and new market entry projects. His success is such that MBN Solutions has exceeded the goals defined by the board for the year and has witnessed accelerated growth in new client acquisition, head count and revenues. Michael has led on developing processes and metrics to improve individual staff member performance and he can proudly claim that every manager in the business has been developed and not hired in.

Director of the Year - Small Businesses Nathalie Agnew Muckle Media

Mandy Haeburn-Little Scottish Business Resilience Centre

Acquisitions, awards and advancements in profitability and turnover have been the key features of Nathalie’s leadership of Muckle Media. As well as developing the PR firm’s strategic direction she has created a positive workforce culture that both empowers and rewards innovation in her team.

Mandy has been the driving force behind the innovations and creativity that have contributed to the success of SBRC in 2016. Her inspirational leadership has helped SBRC embark on a sustained period of strategic change and new partnership engagements which have helped establish it as a key deliverer of the Scottish Government’s Resilience Strategy, particularly in the cyber-security sector.

Tom Campbell North Highland Initiative

Matthew Gammell & Marcus Pickering Pickering’s Gin, Summerhall Distillery

In the past five years, Tom has taken HRH Prince Charles’ North Highland Initiative through a restructuring process which was bold but necessary, creating stability and making it fit for a new chapter of influence, leadership and creativity in the North Highlands. His daring North Coast 500 project has become a global sensation in raising the profile of this region as he channels his passion to make the tourism and hospitality businesses of the North Highlands an economic powerhouse.

Innovation underpins everything Matthew and Marcus do at Pickering’s Gin. They have shown great determination in establishing this unique brand in a very competitive market and great bravery in trying new ideas that consistently go down well with the public. They back up their products with an innovative grasp of how best to market to a public with a growing taste for high-quality niche food and drink.

Tickets available now. See www.iod.com or call First City Events on 01577 865498 Individual places @ £125 Tables of 10 @ £1200 Both prices + VAT The price includes drinks reception, canapés, three-course meal with wine and coffee.

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More finalists - see overleaf 17

Director of the Year Awards: Finalists

Female Director

Sponsored by:

Tom Campbell North Highland Initiative

Theresa Shearer Enable Scotland

Duncan Dunlop Who Cares? Scotland

Celine Sinclair The Yard

Tom has taken up the challenge of promoting the North Highlands, using its renowned natural wonders to boost the tourism and hospitality sectors. His ground-breaking initiative, North Coast 500, has created the biggest socio-economic impact in the North Highlands in living memory, boosting awareness and visitor numbers through its tourism campaign.

Duncan’s ambition to improve the outcomes of young people in care has changed the organisation from an advocacy service to a movement for radical change. His vision has inspired staff, funders and stakeholders and ensures that the voices of young people in care are heard and listened to.

Theresa has channelled her drive, energy and commitment into achieving a remarkable turnaround at Enable Scotland, a charity dedicated to creating an equal society for every person who has a learning disability. Faced with an unsustainable debt, she led tough decisions, ending non-core activities and focusing on key sectors that quickly created a surplus.

Celine is an inspirational and visionary leader of The Yard and has a true passion for its vision – creating a safe place to play for every disabled child in Scotland. She has been at the forefront of its growth and is highly skilled at getting its case across through marketing, activities and the media.

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Director Award for Workplace Innovation Sponsored by: Shirley Campbell Scottish Water

Employee wellbeing is crucial to the ongoing success of Scottish Water, and Shirley has led the organisation to embrace a number of workplace strategies: it is Living Wage accredited, a GOLD level Investor in Young People and ‘Established’ members of Carers positive. It also has strong links with Stonewall Scotland and is a Diversity Champion with an active LGBT forum.

Regional Awards: Finalists Aberdeen & Grampian Stuart Common, Mackie’s Ltd Neil McKenzie, Alba Power Ltd Stuart McLeod, Delphian Ballistics Limited Douglas Whyte, Hydro Group plc

Edinburgh, Lothian & the Borders

Glasgow Bike Station is an employee-led organisation in which employees and volunteers are treated equally and are trained to make their own decisions. Under Greg’s leadership, strategy comes from the bottom up, with employees instigating change, supported by vigorous mentoring and coaching support.

Sheenagh Adams, Registers of Scotland Matthew Gammell & Marcus Pickering, Pickering’s Gin, Summerhall Distillery Scott Mitchell, The Royal College of Surgeons of Edinburgh Commercial Enterprises Becky Woodhouse, PURE Spa & Beauty

Karen Reid Care Inspectorate

Fife & Central Scotland

Gregory Chauvet Glasgow Bike Station

Karen identified a specific need for the Care Inspectorate to change from being a compliance-based regulator to a scrutiny body that supports improvement. Working with 14,000 care services, the majority in the private sector, Karen has maintained the vital role of providing public assurance about care, but at the same time changed ways of working in order to be a modern scrutiny body.

Stephen Robertson Metis Partners Ltd

A true innovator, Stephen has introduced a host of measures to boost employee performance. Chief among them are his OURTime, YOURTime sessions, flexible working to boost productivity and a comprehensive training programme to boost performance and engagement.

Non-Executive Director Sponsored by: Dame Sue Bruce dbe

Sue’s extensive career across the public sector has given her leadership experience in turnaround, strategy, delivery, strategic planning and financial analysis, all of which she brings to bear in her myriad of non-executive roles. Current high profile positions include seats on the board at the Royal Scottish National Orchestra, SSE and Young Scot, and she is also the Electoral Commissioner.

Lorraine Hall Shetland Arts Development Agency

Lorraine’s work for the Shetland Arts Development Agency (SADA) has greatly improved the financial health of the organisation. She oversaw the establishment of a new senior management structure to improve efficiency and helped the body maintain its dynamic output despite the impact of public spending cuts.

Julie Ellen, Macrobert Arts Centre Mandy Haeburn-Little, Scottish Business Resilience Centre Derek Robertson, Keep Scotland Beautiful Bruce Tait, BTA (Bruce Tait Associates)

Glasgow & West of Scotland Louis Schena, Swipii Labs Theresa Shearer, ENABLE Scotland Lorraine Usher, Loreburn Housing Association Michael Young, MBN Solutions

Highlands & Islands Tom Campbell, North Highland Initiative Andy Dytch, ILM Highland Alasdair Ferguson, Ferguson Transport & Shipping Jennifer MacKenzie-Hallwood, TEFL Org UK Michael Tait, Shetland Mussels Ltd

Tayside John Reid, Michelin Karen Reid, Care Inspectorate John Reynolds obe, Castle Water Ltd Theresa Wishart, Journeycall - part of The ESP Group

Marie Macklin cbe Appointedd

Marie has been integral to Appointedd’s growth, scaling its disruptive software, both in the UK and internationally. In May 2016, she helped the company raise £595,000 in a funding round from a range of investors and secure its largest ever deal – valued at between £15-20m – with Alliance Business Centres Network.

Stuart Renton Vetcel Ltd

From bringing the business back from the brink after the Foot and Mouth disease, through to embracing change and new practices, Stuart has led Vetcel Ltd with a calm assuredness that has inspired confidence throughout. Recent successes include the company finding a place in Scotland’s ‘Top 500 Businesses’, a share buyback and compliance with the FRC code of governance.

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Director’s briefing: Sustainability

A sustainable economy is a strong economy Viewpoint: Ambition, plus long-term thinking, will help us achieve the economy and society we want, says Samantha Barber, Vice-Chair, Scotland’s 2020 Climate Group.

lobally, business leaders are starting to see sustainability as an opportunity to develop new markets, reach new groups of customers, expand and diversify, ultimately ensuring a long-lasting competitive edge. This approach requires a long-term strategy towards an economy made strong because it is sustainable. The UK and Scottish governments are deliberating on a range of issues, the details of which will have wide-ranging implications for the economy and for businesses, not least Brexit, the proposed Climate Change Plan and the upcoming Scottish Energy and UK industrial strategies. Scotland’s 2020 Climate Group aims to act as a catalyst to facilitate business-led collaboration and innovation to identify new opportunities and to nurture and convene new models of leadership for our low-carbon future. We recognise the need to simplify and clarify targets and focus on the trajectory for reaching them if businesses are to engage meaningfully – which they must. There is a clear need for an overarching, interlinked vision that is compelling for businesses and details what ‘success’ will look like for Scotland in the long term. This vision must necessarily be low carbon, circular and sustainable, considering likely future infrastructure, digital, social, geographical and sectoral needs, and both encourage and enable innovation. This clarification of longer term ambition, fully reflecting longer term economic priorities, with clear interim targets, is reflective of the operating environment of businesses today. Combined with transparency and consistency reflected across Government departments, with certainty around investment and financial levers, this is essential to enable businesses to implement the necessary technological, financial and behavioural shifts required, within a reasonable time frame. The 2020 Climate Group supports appropriately stretching interim targets, as will many larger Scottish businesses. A clear example of this is shown by the Scotch Whisky Industry whose 2016 Environmental Strategy incorporates its own interim target. Businesses require long- term clarity on Government aspirations and ambitions and we

“We don’t have all the answers... but setting goals within what is technically possible now will only limit our long-term success.” welcome the opportunity to engage fully with the development of the Climate Change Policy and Energy Strategy. In order to plan investment and embrace innovation, business must be able to make decisions confident of regulatory requirements and economic opportunities for the long term. With strong and clear ambitions and targets, there is an opportunity for organisations to adapt their business models to ensure that a low carbon, circular, sustainable approach is at the heart of everything that they do. Business’ ‘reward’ then derives from performing better and ensuring long-lasting competitive edge compared to other companies in the sector. Some of Scotland’s public sector bodies are also shaping up to support businesses to go further and faster towards reaching the 2020 Group’s shared view of inclusive and sustainable growth. An excellent example is the recently launched regulatory strategy from SEPA – Its One Planet Prosperity approach recognises that the most successful businesses in the 21st century will be those that are low carbon, low materials use and low waste. It provides a supportive framework for all of Scotland’s business sectors to go beyond compliance standards to achieve greater aligned outcomes for Scotland’s environment, economy and society. The 2020 Climate Group is particularly interested in the development and commercialisation within Scotland of innovative technologies which can help us meet

our ambitions. For example, as we get beyond the easier wins, technologies, like carbon capture and storage (CCS) which remove carbon from industrial processes and power generation must be part of a solution. If we are to achieve cost-effective and economically sustainable decarbonisation, there is a need for Government to show clear and consistent leadership, and lever appropriate levels of public investment if innovations are to be developed, trialled and commercialised across Scotland. Investment and financial models (public and private) need to encourage a shift, away from companies that deliver fast growth at any cost, to those with viable, business models with future sustainability at their core. Policy and regulation must encourage and stimulate this shift. Our vision is ambitious – and we want to encourage ambition in others, in business, the public sector, society and Government. We don’t have all the answers on how to achieve these goals! But setting goals within what is technically possible now will only limit our long-term success. It is only through clearly integrating sustainabilty across all our future goals and plans that we will find the solutions and actions required.

The 2020 Climate Group Group is a business-led initiative helping Scotland to make the transition to a low carbon, sustainable economy. Find out more at www.2020climategroup.org.uk WWW.IOD.COM

Director’s briefing: Resource efficiency

Planning for prosperity in the face of rising costs

About Resource Efficient Scotland

Over the next two years, the UK will experience a period of political and economic uncertainty. The prices of energy, water and raw materials are likely to rise unpredictably, which will impact the profitability of Scottish businesses. However, many are finding ways to turn this uncertainty into opportunity by accessing free Scottish Government support to cut costs and achieve sustainable business growth. In the past it was just resource-intensive sectors that considered the volatility in energy, water and raw material costs to be the difference between meeting and missing profit targets. Today, however, this applies to all sectors. Businesses as diverse as corner shops, retail outlets, hotels, financial services and sports clubs are adopting strategies of continuous improvement to cut their overheads. And it is easy to see why. Reducing consumption is often the easiest and most immediate way for a business to boost its bottom line performance. On average, businesses save £41,000 when they take advantage of Scottish Government loans to make investments in efficiency. Then there are the long-term strategic advantages of greater efficiency. Scotland has made a global commitment to reducing carbon emissions and the UK has adopted the United Nations Sustainable Development Goals with targets to combat climate change and promote sustainable consumption. As a result, green investment is becoming increasingly mainstream; and many businesses are seeing this as an opportunity to secure a competitive edge. Most businesses understand this argument, but many struggle to prioritise it. That is why the Scottish Government’s funding and free technical support are available to make it as easy as possible for small to medium-sized enterprises to make savings. Resource Efficient Scotland has already provided £23.5 million in unsecured, interest-free loans to businesses in Scotland, while other capital contribution schemes offer up to 30% of the cost of installing energy-saving equipment. Businesses that adopt resource efficiency as part of their business strategy have an opportunity to not only unlock profit but to safeguard against an uncertain future.

Resource Efficient Scotland is a programme from Zero Waste Scotland, funded by the Scottish Government and the European Regional Development Fund. n Free consultancy support to identify ways to cut energy, water and raw material use n Unsecured, interest-free loans of up to £100,000 to fund high impact projects n £10 million saved for Scottish businesses last year n 9/10 customers would recommend it to other businesses

Start saving today. Call 0808 808 2268 / enquiries@resource efficientscotland.com

Resource efficiency case study:

How Gala Rugby Club tackled energy costs

Gala Rugby Club used a Resource Efficient Scotland loan to buy and install photovoltaic (PV) technology at its stadium, reducing its annual energy costs by nearly £6,000. The club benefitted from initial support from Resource Efficient Scotland in the form of an on-site assessment that focused on measures to reduce the costs for heating, lighting and water. In total, potential savings worth over £21,000 were identified through reducing energy and water consumption. “The loan we received for the PV panels has not only enabled us to save a lot of money, but is also a very visible sign of our commitment to reducing the Club’s environmental impact,” said Graham Low, President, Gala Rugby Club.

March breakfast briefings: How to access £100,000 in Government funding to grow your business Glasgow: Date: Tuesday, 21 March Venue: Radisson Blu, Glasgow Time: 08:30-10:30 Edinburgh: Date: Wednesday, 22 March Venue: Edinburgh Centre for Carbon Innovation Time: 08:45–10:45

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Resource Efficient Scotland and Scotland’s 2020 Climate Group are hosting two free breakfast briefings to provide business leaders with everything they need to know about accessing Scottish Government finance to fund resource efficiency projects, cut energy use

and maximise profit. SME managers and directors are encouraged to visit www.resourceefficient scotland.com/ events-list or call 0808 808 2268 to register for their free spot at the briefing.

Scotland’s 2020 Climate Group is a business-led initiative helping Scotland to make the transition to a low carbon, sustainable economy. Find out more at www.2020climategroup.org.uk

Technical briefing: Law

Time is running out to post a snapshot of your organisation’s gender pay rates and release them to the world - so are you ready, asks Elaine McIlroy MIoD, Weightmans LLP

ime is running out to prepare for Gender Pay Gap reporting, and at last the Government has published long-awaited final regulations setting out exactly what employers need to do. Private and voluntary sector employers with over 250 employees (in England, Wales and Scotland) must publish 14 specific figures including the mean and median gap in pay between men and women, the difference in mean and median bonus pay and the proportion of men and women who received any bonus pay. Employers must also split their workforce into four equal ‘quartiles’ (ranking employees from highest to lowest paid) and report the proportion of men and women in each section. The key date is 5 April 2017. Employers will need to take a ‘snapshot’ of the pay period for each employee that includes this date and they will need to consider and report on all bonuses paid throughout the year between 6 April 2016 and April 5, 2017. While employers need to move quickly to make sure they are ready to capture data on the ‘snapshot date’ there is more time to publish these figures, with first reports due by April 5, 2018. That will provide some breathing space to take stock, consider what the figures show and to consider them in context. Be warned: the regulations are complex and

present some tricky preliminary issues. First, employers will need to ask if they meet the 250 employee threshold? The definition of ‘employee’ is broad and will include some contractors or casual workers who wouldn’t normally be included in your headcount. Second, employers will need to calculate an hourly pay rate for each employee – which is easier said than done! The regulations set out a prescriptive calculation and employers will need to decide what elements of the

“Employers are not required to explain the figures, but it would be wise to do so if they show any gender disparity...” remuneration package to include and which should be left out. The same goes for bonuses. Even if you have excellent pay data quickly to hand, it may not be as easy as you think to produce these particular numbers. While there are consequences if employers fail to publish any figures at all, any glitches in the sums may not be spotted – initially at least. However, reputational damage is the real risk and employers will want to consider how their numbers compare to their competitors and

others in their sector. Will opportunities to win new work be impacted by these statistics and how will employee relations be impacted if there is a significant gap that look poor when compared with others within the sector? Remember, a gender pay gap does not automatically signal unlawful discrimination – a closer look at the figures and roles is needed to assess the risk of any equal pay claims within an organisation. However, the legislation is intended to shine a light on any gap and it is inevitable that questions will be asked where the gap is significant about what measures are being taken to improve gender equality across the organisation. Employers are not required to explain the figures, but it would be wise to do so if they show any gender disparity. The contextualising narrative may be the most important part of the report and communicating the gap to employees in a meaningful way that also explains any measures being taken to close the gap and achieve better gender equality will help. If you have few women in higher paid management roles, but are supporting female staff to progress, then say so. If your sector is male-dominated, but you’re encouraging women to apply, explain this fully. Timing is also crucial. Will you ‘blaze a trail’ and publish early or hang back to see what others come up with? WWW.IOD.COM

Technical briefing: Training

Scotland needs leaders – SQA driving up skills for future managers

o matter how big your organisation, strong leadership and management qualifications have a critical role to play in its success. Strong leaders and great managers enrich the UK economy. In a recent CBI Education and Skills survey, 70 per cent of companies said they believed they would need more people with leadership and management talent. The need for strong leaders and managers applies to every organisation, from large multi-national companies to SMEs. Effective managers can provide direction, facilitate change and tackle difficult business challenges head-on with innovation. They can boost loyalty, morale and productivity, and help maximise business growth.

Creating Leaders As part of SQA’s commitment to Scottish education, they are working with industry to develop qualifications and services across a wide range of sectors. These qualifications are developed to drive up skills for Scotland’s future business leaders and managers. SQA qualifications are structured in such a way that they form ‘building blocks’ which enable progression to other qualifications. SQA provides a wide range of qualifications to help improve leadership and management skills at every level. And they are applicable to all types of business, from a local retailer to a national call centre. By working in partnership with industry, SQA also ensures that all their qualifications are robust in developing best practice, and relevant to the needs of your organisation. There are qualifications designed to suit every level of learning, and they are jointly certificated with CMI.

Expert service As specialists in qualification and assessment design, SQA knows about leadership and management skills and how to develop them. The starting point for every SQA customer is their dedicated Account Manager whose job it is to get to know you and your company’s needs. They can then help identify the most profitable way forward, depending on your requirements. They may recommend you select from the wide portfolio of focused leadership and management qualifications, for example, or you may find some of SQA’s other qualifications would suit your needs better.

Alternatively, your Account Manager can take you through the process of developing your own SQA Customised Awards to meet your particular objectives.

The progress begins here At SQA they don’t just create qualifications, they benefit from them as well. They employ over 700 staff, and they recognise the importance of a well-trained and motivated workforce. Many SQA staff will achieve one or more SQA qualifications while they are with the organisation. In particular, SQA Leadership and Management Qualifications are offered to staff through Personal Development Programmes. They are developing the skills today that will take the organisation forward into the future.

Becoming a centre To offer any SQA qualification, you can become a centre in your own right or SQA can put you in touch with one of their SQA Approved Centres. If you’re already delivering SQA qualifications, but are not yet approved to offer Leadership and Management, speak to your SQA Account Manager. Approved Centres have access to free support materials on SQA’s secure website.

Qualifying for success SQA is committed to boosting vocational and business training, and to supporting education at every level in Scotland. SQA Leadership and Management qualifications are helping to create a new generation of business leaders and managers with the ability to energise Scottish businesses and Scotland’s economy. You can find out more about SQA’s Leadership and Management qualifications by calling SQA Business Development at 0303 333 0330, emailing leaders@sqa. org.uk , or by visiting www.sqa.org.uk/leaders

“As a large employer in Scotland, SQA are committed to continuous learning, and our staff have undertaken — and achieved — a wide variety of SQA leadership and management qualifications. We not only develop these qualifications, but use them in our organisation to help us nurture and develop our own staff. This ensures that our leaders and managers have effective skills when managing teams, and also helps with our business continuity and future plans.” Maidie Cahill, Director of Corporate Services, SQA WWW.IOD.COM

Technical briefing: Agile business

Does your business have the agility capability it needs to cut through in a cluttered market, asks Steve Cartwright, Partner and accredited Mindshop facilitator at Henderson Loggie

he posters on the walls of Facebook’s London office to remind staff that “done is better than perfect”, a quote attributed to founder Mark Zuckerberg, is aimed at inspiring workers to make progress quickly. In fact, speed is a recurring theme at Facebook where ‘move fast’ is listed second after ‘Focus on Impact’ as one of the company’s five core principles. The idea that companies need to be agile to innovate and grow is not a new one. However, it is as relevant across all business practices today as it was when it originated decades ago to bypass unproductive development activities and bring software products to end users more quickly. A recent survey by business support solutions company Mindshop identified ten key capabilities which business leaders will need to succeed in 2017. Respondents to the survey, who were business leaders and advisors from around the world, highlighted the need for their organisations to balance stability with dynamic capabilities to respond quickly to changing market conditions. Business agility was listed as a ‘must-have’ competency for business leaders to cut through in a cluttered market. Customer lifetime value is a key metric for long term success as business. To stay relevant, innovate and continue to add value year-onyear requires leaders to not only be responsive to change, but for the culture of the entire organisation to have the ability to react quickly enough if they don’t want to miss the boat. None of us can afford to be caught napping. Take, for example, my own business. Changes in accountancy practices, most notably the rapid growth in cloud accountancy software, have forced accountancy firms to re-think how to position their services by identifying new ways in which they can add value to clients. The winners will be those with the mind-set and structure to not only keep pace with market challenges as they arise, but to have the strategic framework and organisational agility that allows them to lay tracks further up the line. The losers will be those trapped in state of analysis paralysis, where time is spent reviewing different potential outcomes before taking action, and is likely to leave them behind market developments. And things are moving quickly. In response to its survey findings, Mindshop

Don’t be caught napping: keep agile to stay in business has proposed three strategy ideas to test business agility which I recommend to any business leader. First, carry out a capability audit and identify what you need to improve on in 2017 to stay relevant to your customers. Second, ask how you can re-invent your top five customer relationships to add greater value and potentially increase their spend with you. Finally, achieving growth will force changes into your business and keep your customer relationships fresh. Being agile is not about bending over backwards to keep clients happy; it’s a way of working that will keep your business relevant in the marketplace.

“Business agility was listed as a ‘must-have’ competency for business leaders to cut through in a cluttered market...”

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In conversation: Quality Scotland

Quality counts - and Andy Kerr wants to embed it into Scotland Andy Kerr talks to IoD Scotland about his hopes and aspirations for the future as he takes on his new role as chair of Quality Scotland. “Succeeding Sir Andrew Cubie will not be easy but I look forward to working with Claire Ford, CEO, the Quality Scotland Board and staff to continue the pursuit of excellence.”

What attracted you to the position of Quality Scotland Chair?

The chance to play an influential role in the continuing journey of making excellence a national characteristic of Scotland was too good an opportunity to miss. My whole working career has in some way or another been connected to my own personal journey towards excellence and quality in the organisations that I have worked in. Being part of a Scotland-wide initiative, working with new and different people in different sectors and organisations, gives the opportunity to develop the key objectives of Quality Scotland and my own development as an individual.

What, in your opinion, are the key influences /challenges over the next few years that will have an impact on quality and business excellence?

The ability for us to recognise that quality initiatives, in whatever form they take, assist us to deal with the day-in, day-out challenges that we all face, is key for me in influencing an organisation’s decision to take up EFQM models or similar. As the nation moves into

said, we have successfully moved from Committed to Excellence level to Recognised for Excellence and recently gained our four star accreditation. If my experience could be summed up it would be as a distant and interested person who is moving into an advocate of Quality Scotland and the EFQM Model and its ability to influence organisations.

What are you most looking forward to in your new position?

different challenges politically and economically, I do believe that the discipline of the EFQM Excellence Model and other initiatives allow us to better handle the changing environments that face us. The key challenge for every organisation will be to recognise the opportunities through quality and excellence that can deliver for the overall objectives and help us to deal with the ever-changing external environment in which we operate. We should not forget the benefit and confidence that is brought to the people that we work with when we are part of an internationally recognised standard independently verified and awarded.

What experience do you have of Quality Scotland and the EFQM Excellence Model?

Quality Scotland was an organisation known to me at some distance in the variety of roles I’ve held in the past. However, in my arrival at Sense Scotland as its new Chief Executive I saw the EFQM Excellence Model as a key development tool for the organisation. That

I am looking forward to seeing at close hand the role of the Quality Scotland team, to exchanging views at Board meetings but most of all to becoming part of Scotland’s initiative for developing our economy and services. I really look forward to meeting new people who have their own stories to tell when it comes to quality and innovation and representing these stories more widely to ensure recognition for some of the great things that we do.

What will be your guiding principle while chairing the Quality Scotland board?

My guiding principle for chairing the Board will be the inclusiveness of everyone around the table to ensure that we work effectively as a team, that we achieve our collective ambition for Quality Scotland and that we work effectively with the Quality Scotland team. However, the overall principle will be to ensure that we further develop the organisation, widen its role and relevance and become a driver of change in organisations and businesses throughout Scotland.

What are the key challenges facing Quality Scotland and the new chair?

We are a relatively small team but we must ensure that we continue to have a serious impact on the economy of the nation, that we make ourselves relevant to organisations throughout Scotland, that we tailor our services to meet their individual need and we become an inspiration for those who need that little nudge to make big changes. As a new Chair I hope to ensure that I properly reflect and represent the organisation, its members, and, its efforts to those key stakeholders who can truly assist us in making a difference for Scotland.

“Quality and its approaches to it are woven throughout my entire working life in so many ways as a practitioner, as an advocate and as a senior decision-maker and I truly want to make a difference.”

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News

200SVS investment boost for Loch Lomond New events, restaurant and spa venue comes to Loch Lomond Shore 200 SVS, Glasgow’s deluxe conference and events venue, has announced its expansion plans for 2017, bringing a new wedding and events venue with restaurant and spa to Loch Lomond. Following a significant investment, the 800 sq. metres venue – The Shore, Loch Lomond – is due to open in 2017 at Loch Lomond Shores. The Shore, Loch Lomond will provide a new restaurant and a spa for local residents and visitors to Loch Lomond Shores. It will also incorporate a wedding and events venue with a capacity of up to 300 guests. Kim Wilson, Managing Director of 200 SVS and sister company, The Shore, Loch Lomond, says: “I’m absolutely delighted to have secured

High-quality laser helps secure new deals for Retronix Electronics company Retronix has secured two major multi-million pound international contracts that will double its turnover over the next two years, thanks to its highly innovative Laser Reballing technique for reworking components. Retronix’s two new contracts have been dependent on an investment of £400,000 to purchase a new larger, high-quality laser that can undertake the work efficiently and support the new jobs. The contracts offer an opportunity to transform the business, adding a forecasted turnover of £3.8m over the next two years, and allow Retronix to target more international work. The company have been working closely with Scottish Enterprise and are supported by a Regional Selective Assistance grant of £99,000. Mr Gary Moffat, sales director from Retronix, said: “This latest investment combined with our innovative techniques gives us a fantastic platform from which to expand into new markets throughout the world – specifically in the High Reliability Electronics Sectors, such as aerospace and defence.” Jim Watson, Innovation and Enterprise Services Director at Scottish Enterprise, said: “This is a superb example of a Scottish manufacturing company at the forefront of electronics innovation. We are very pleased to be supporting Retronix secure these two contracts and enhance their international competitiveness.”

our new venue at the beautiful Loch Lomond Shores. Our operation in Glasgow city centre, 200 SVS, has gone from strength to strength and this is a perfect time to expand our offering to include another fantastic location. “We will open in late summer 2017 but we have a lot of work to do behind the scenes before we unveil.” Scottish Enterprise, the Scottish Government’s economic development agency, and Loch Lomond & the Trossachs National Park Authority have worked in partnership to help bring this new investment to the area. Mairi Bell, head of visitor experience at Loch Lomond & The Trossachs National Park, said: “Following an intensive tender process, we are pleased to have secured a tenant for the former Gateway Centre. 200 SVS are creating a new offer that complements the existing five-star visitor experience at Loch Lomond Shores,

while creating jobs and bringing new markets to the National Park.” Allan McQuade, director of Business Infrastructure at Scottish Enterprise, added: “This announcement is great news which will see life brought back to the former Gateway Centre at Loch Lomond Shores as well as significant opportunities for the area. “I’d like to congratulate 200 SVS on their expansion plans at one of Scotland’s most visited tourist destinations.” Clare Gemmell, General Manager at Loch Lomond Shores, says: “The business growth at Loch Lomond Shores is continuing to buck trends by adding new experiences each year. We are thrilled to welcome The Shore on-board here, and their exciting development will add a whole new dimension to our destination.” The Shore, Loch Lomond will open across two floors in the former Gateway Centre in Loch Lomond Shores. The building work is due to start this month (March) and 200 SVS will take over the building later in the year.

David Sole takes on AM chair as company bids for growth David Sole OBE has been appointed as Non-Executive Chairman of AM Bid Services. The Lothians-based company, established in October 2014, assists local, regional and national organisations with delivering business growth by creating winning bids and proposals. Managing Director Andrew Morrison, said: “The UK public sector is required to put most goods and service needs out to competitive tender. The private sector is also frequently requiring proposal documents. “Therefore, producing high quality winning bids has become a specialist task. “We have built a strong reputation for helping our clients win and the business has grown exponentially over the past 18 months. The time is right, therefore, to appoint a NonExecutive Chairman who can provide the support and direction we need to take AM Bid Services to the next level. “We are delighted to welcome David to our board. He will undoubtedly challenge the team while offering advice based on

unrivalled experience.” David Sole (pictured below) added: “Working with senior clients and highprofile businesses across all sectors in the UK, I am aware of the processes that have become such an important part of growing any business and indeed I have grown two B2B businesses of my own. “Since meeting Andrew and learning about AM Bid Services, I have been very impressed with the way in which it has grown and how quickly it has become established as a leading provider of bidding services. “AM Bid Services is providing a highly valuable service to organisations who need to bid for some or all of their work. Getting external bidding assistance can make a huge difference to business growth targets. “Andrew has a strong vision for the future of AM Bid Services and I am looking forward to working alongside him and his team to help achieve this.” www.ambidservices.co.uk

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Inside IoD Scotland

Events Benefits Offers Branch news

IoD Branch news

Giving Tayside its ‘gathering place’ Andy Doig Chair, IoD Tayside IoD Tayside has a mission: it is to be ‘The Gathering Place for Leaders in Tayside’. We have a strategy to realise that mission and in 2017 that strategy consists of four pillars. The first of those is for us all to communicate effectively about topics relevant to creating ‘Better Business’ in Tayside. To that end, we have identified, and are arranging, a number of engaging events for this calendar year. We will also be making better use of LinkedIn as a communications tool. Our second pillar is to grow and rebalance our membership. We’d like to grow by 10% this year – which is quite a stretch – and we’re aiming to do that by strategic focus as well as tactical recruitment and, of course, retention. We also want to improve the cognitive diversity of our membership so that our discussions and debates are as interesting and effective as possible. The third pillar is achieving a mix of locations for our meetings. We will have at least two of our events this year in Perth; we also plan to hold two online. Our last pillar is related to good corporate governance and it is really just a health check to make sure that we practice what we preach.

Forthcoming events

We have four events planned for the first six months of this year; we also have four in development. Please look out for the opportunity to sign up for these events on WWW.IOD.COM

iodscotland.com. On March 16th we will have a discussion on ‘Design Thinking’. The event will be held at Maggie’s Centre and our speaker will be Andrew Cameron who is The Programme Manager for Design Led Business Innovation at The V&A Museum of Design. In early April we will have a site visit to the Michelin factory in Dundee. This is a leading edge manufacturing plant both in terms of technology and in how one operates successfully in the 21st century. Spaces are likely to be restricted so I recommend that you sign up quickly for this. See the Events calendar on pages 34-36 for more details. On May 11 we will have a discussion on ‘Bitcoin and Blockchain’ which will be led by Richard Messitt of Zudu. Blockchain is interesting and important as one of the more successful cryptocurrencies. However, one could argue that Blockchain is the more important advance since it threatens to disrupt many industries where third party verification of transactions is required. The location for this event is still to be confirmed. Finally, on June 15 we have a leadership lecture by John Swinney MSP, the Deputy First Minister, followed by a drinks reception and an influencers’ dinner. This is being hosted by Dundee University. Details will be firmed up soon so look out for booking to open in March In July we will hold the first of two events where we will celebrate the success of organisations in Tayside; the first will be our Summer Party; the second will be held in

December and will double as our Xmas party. These will be relaxed events where we will invite three local organisations to spend 10 – 15 minutes talking about how they have succeeded in our region. This will be followed by drinks and an opportunity to meet each other. More details will be posted on the website when available. We also have two other events being planned for the tail end of this calendar year. I don’t want to give away too many details until they are closer to finalisation but each is as relevant to the zeitgeist as our discussions of design thinking and Blockchain. I’ll share more information when I can. I hope that you are as excited about these events as we on the committee are. If you would like to give us any feedback on these – or any suggestions for additional or different events – then we would love to hear it.

The IoD Tayside Committee

I would like to welcome Sonia Cottom to our committee. Sonia is the CEO of Pain Scotland and is based in Perth. We still have vacancies for other committee members. If you’d like to join the committee then please contact me in the first place to discuss what that entails and the appointment process. The committee feels passionate about making our organisation engaging and valuable for all of our members. We’d like your help to make that happen. If you have any ideas that you have for events, etc, please get in touch to talk those through with us. All the best! More IoD Branch news: see page 37

Membership Benefits

international TRAVEL

Emirates’ IoD Silver Service is extra special Emirates has launched an exclusive offer to IoD members on its Skywards scheme, automatically upgrading their membership by one tier from either Blue to Silver or Silver to Gold. Additional benefits include dedicated check in areas, additional baggage, Emirates lounge access and priority waitlisting (a seat rescheduling benefit). (Please contact jill.niven@emirates.com for details on how to take advantage of this offer.) Emirates flies twice daily to Dubai from Glasgow and 16 times daily from a choice of five other UK airports, offering convenient onward connections to over 150 destinations. On board, passengers

can enjoy world-class service, regionally inspired gourmet cuisine and over 2,200 channels of award-winning entertainment – plus phone, SMS and Wi-Fi connectivity from every seat.

MEETING ROOMS Please check out our new members’ facility at 10 Charlotte Square. At our Edinburgh head office we can offer: n Members’ lounge and workroom: Free of charge to members and up to three guests. Free refreshments and Wi-Fi n Exclusively for members to hire: - Boardroom for 16 - Garden View room, for 8 - Castle View room, for 12 - Forth View room, for meetings, training workshops, lectures for between 20-50 people, etc Call 0131 557 5488 or email iod.scotland@iod.com for details.

HOTEL DISCOUNTS

AIRPORT LOUNGES IoD membership gives you free access to four Airport Lounges in Scotland, plus eight other UK destinations. Edinburgh Airport – Aspire and No.1 Traveller lounge Glasgow Airport - Upperdeck lounge Aberdeen and Inverness Airports Swissport Executive Lounge. Just sign in with your IoD membership card.

PREFERRED PROVIDERS

NEW Parking benefit Members can take advantage of a new exclusive members discount for parking at NCP Castle Terrace, Edinburgh. Park for up to 12 hours for £10. This is ideal if you are visiting the IoD‘s Charlotte Square Hub for a meeting, or director development. Pick up a voucher at the IoD office which can be used when you exit the car park.

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On the ground, First Class and Business Class passengers can take advantage of a complimentary chauffeur-drive service, expedited check-in, dedicated baggage handling and luxurious lounge access in a dedicated First & Business Class lounge at Glasgow Airport – ensuring a seamless journey from start to finish. With flights from Heathrow, London Gatwick, Birmingham and Manchester, travellers can experience the Emirates A380 featuring Private Suites and on board Shower Spas in First Class, an Onboard Lounge and flat-bed seats in Business Class.

Health plans at special rates The IoD’s scheme with Westfield Health provides members with exclusive corporate and personal plans that provide cash back on essential healthcare costs. IoD Health Plans complement any existing Private Medical Insurance (PMI), as the consultation benefit can be used to cover PMI excesses. Benefits include 100 per cent reimbursement up to set limits on optical and dental care, fast access to MRI, CT & PET Scanning Facilities and DoctorLine™ 24/7 GP telephone access and webcam consultations

IoD Scotland has negotiated special discounts and rates for members at hotels in Glasgow, Edinburgh, Aberdeen and Inverness. Members can obtain a 15 per cent discount off accommodation (best available rate), food and beverages as well as meetings and event bookings at: n The Grand Central Hotel, Glasgow n Blythswood Square, Glasgow n The Roxburghe, Edinburgh n The Principal, Edinburgh n The Bonham, Edinburgh PLUS Special discounts at 200 svs Glasgow IoD hub. Aberdeen: Preferential accommodation rate at Aberdeen Hilton Garden Inn. Inverness: Preferential accommodation rate Kingsmills Inverness and IoD guests will receive a VIP package, including a late checkout and room refreshments.

The Principal, Edinburgh

WWW.IOD.COM www.iod.com

IOD ADVICE LINES All IoD members have access to specialist information and advice, including legal and tax helplines and a comprehensive business library. Make sure you are registered online at ‘My IoD’. This is the place to contact the Information and Advisory Service and to review existing enquiries – see www.iod.com/services/informationand-advice. Our legal helpline provides IoD members with free and prompt business legal advice on a wide range of employment, company, commercial and personal legal matters in the UK and Europe. Key details n Exclusive to IoD members n Free, unbiased and confidential advice on a vast range of legal issues n Advice given over the telephone only (call charges apply) n Up to 25 calls per member, per calendar year; up to 20 minutes per each call

RAIL TRAVEL

Free first-class upgrade on ScotRail services Abellio ScotRail is continuing its fantastic offer to IoD Scotland members. Just present your IoD membership card to the conductor on-train along with a valid ticket type for that journey and receive a free upgrade to First Class*. The offer is valid on Anytime Single, Anytime Return and Off Peak where First Class accommodation is available. Members whose businesses use train travel regularly could also sign up to ScotRail’s Business Direct service, a solution designed to help support you by

PREFERRED PROVIDERS

BUSINESS INFORMATION As an IoD member, you have access to our top professional researchers, who can provide you with valuable information on topics ranging from market forecasts and industry trends to trading abroad and employee salaries. Key details n Free and exclusive service to you as an IoD member n Accessible from all over the world by email or phone n Up to 25 enquiries per calendar year with 30 minutes of research time on each occasion n Bespoke answers within 24 hours or soon thereafter during exceptionally busy periods

Home insurance cover from Hiscox. Why choose IoD Home and Contents Insurance? n IoD Members save 12.5 per cent on Hiscox’s standard rates (subject to underwriting criteria) n Over 98 per cent of Hiscox customers surveyed who have made a claim would recommend them n Individual items or sets under £15,000 are covered as standard n High-quality cover for your second and third UK homes available n Comprehensive cover for home building works available as an extension to your main policy n Could save with a 25 per cent no claims discount when you switch to Hiscox

Car Hire from Hertz Benefit from free membership of Hertz Gold Plus Rewards Five Star – a valued VIP service providing a speedier rental process, free upgrades and free additional driver cover.

managing your business travel programmes, saving you time and money. So let’s move your business travel off road and on to rail – and do it in style with our special offer, courtesy of ScotRail. For more information: See www.scotrail.co.uk/businesstravel or call 0141 335 4015 to find out more.

SPECIAL BENEFITS Free Career Consultation for IoD Scotland Members TCMO is a Scottish-based career and personal development business which specialises in delivering tailored career management programmes for individual business professionals and for employers in Scotland, and beyond. Working with IoD Scotland, TCMO is offering members a free career consultation. This is a personalised one-to-one session to review and plan for a portfolio and / or full time career. The sessions are usually around 45 minutes long and can be done face-to-face or over the phone. Following the consultation, members can also claim a 15% discount on our TCMO services for individuals and businesses. To book a consultation, call 0800 009 3141, or for more information: www.tcmo.co.uk/iod-scotlandmember-offer

Make the most of your membership with the IoD Scotland offers WWW.IOD.COM www.iod.com

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IoD Scotland Events

16 Mar Time: Venue: CPD: Cost:

Question Time with Opportunity North East in conjunction with Aberdeen Entrepreneurs 12pm - 2pm Doubletree by Hilton Aberdeen Treetops, Aberdeen 1.5 hours Members £40 + VAT

IoD Aberdeen, in partnership with local Networking group Aberdeen Entrepreneurs, brings you a lunchtime ‘Question Time’ style session with the leaders of Opportunity North East (ONE). Opportunity North East (ONE) is a private sector-led body, focused on ensuring a sustainable economic future for North East

Scotland. ONE aims to broaden and strengthen the region’s economy by investing in and accelerating the delivery of projects of scale and impact through four sector boards: food, drink and agriculture; life sciences; oil and gas and tourism. With an investment of £25m over five years from The Wood Foundation, it is industry-led and privately funded with the aim of leveraging a further £25m of match funding and investment from the private and public sectors to safeguard

and create new jobs. ONE is the private sector partner in the Aberdeen City Region Deal, alongside Aberdeen City Council and Aberdeenshire Council. Chairing the session will be Sir Ian Wood and the panel will consist of: Jennifer Craw - Chief Executive, ONE Patrick Machray - Chairman of ONE Food, Drink & Agriculture Professor Stephen Logan Chairman of ONE Life Sciences Colin Crosby - Chairman of VisitAberdeenshire Left, Sir Ian Wood

22 Mar Managing your professional career Time: 9am - 1pm Venue: IoD Scotland, Edinburgh CPD: 4 hours Cost: Members, £170 + VAT Non-Members: £195 + VAT

16 Mar

Design for Business with the V&A

Time: 5.30pm - 7.30pm Venue: Maggie’s Centre for Cancer Support, Ninewells Hospital, Dundee Cost: Members, £20 + VAT Members’ guests, £20 + VAT Non-members’, £30 + VAT All prices include £5 donation to Maggie’s This will be an informal evening of case studies and stories of how design thinking has helped create innovation for organisations. If you want to help your organisation to innovate and improve this will be an inspiring evening of ideas and people. Our keynote speaker for the evening is the energetic and passionate Andrew Cameron who leads the Design for Business programme at the V & A. Guest ‘storytellers’ include:

Lesley Howells – Maggie’s Centre manager – will tell the story of the building and how its design and the innovative services they provide support people and their families with cancer. Jasmine Morris, an industrial designer experienced in multi-discipline design innovation, will tell some stories of this approach which harnesses very different perspectives to stimulate real innovation. Rod Mountain, a specialist in the NHS, tells us about how the health service has used design thinking to solve medical problems, and how these techniques can be applied to business. In addition to listening to our guest speakers, there will be opportunity to explore Maggie’s Centre, network and engage with other people interested in design thinking and innovation. A light finger buffet will be served. Remember, £5 of your ticket price will be donated to Maggie’s.

This half-day (9am-1pm) stand-alone, highly practical and outcome-based workshop will help you recognise the importance of regular career planning throughout, and irrespective of, your current life stage. Offering an effective suite of bespoke and established tools, techniques and discussion it will help you identify your personal aims and ambitions in relation to the next stage in your career planning. It is ideal for directors and their teams at any career age or stage who are looking to get more from their career / profession, or people who have or are likely to go through career transition who would benefit from practical support to help achieve their goals. Our workshop Leader is Graeme Wilkinson of The Career Management Organisation. Graeme has a proven track record of excellence in executive coaching and learning development consultancy. He has undertaken a wide variety of progressive leadership roles throughout his extensive career, leading large business HR teams both directly and across complex matrix environments.

WWW.IOD.COM

To book online visit www.iod.com/events-community

22 Mar

Developing the Anti-fragile Board workshop

Time: 9am - 5pm Venue: IoD Scotland, Edinburgh CPD: 4 hours Cost: Members, £345 + VAT Non-Members: £395 + VAT The only constant organisations face is change, including high impact global, national, regional and local shocks (so-called ‘Black Swan’ events). This one-day workshop provides board members with the skills to not only face these challenges but also to identify approaches for horizon scanning and to systematically manage risk. Properly constituted and conducted Boards are not fragile, but anti-fragile. They are more than just robust, since they get stronger through their collective experiences of the Board and the individual experiences of their Board members. But Board members can be difficult people too, thinking as individuals or as representatives of capital or stakeholders, rather than as Board team players. This

10 Apr

workshop also considers the skills required for mobilising and unifying the team, and how to be a good Board team member. It will explore what makes organisations fragile and more susceptible to failure, and the difference between being resilient to shocks and being anti-fragile. It will also help you understand high impact, unexpected events and why some FTSE 100 Boards consider them in risk management discussions, as well as explore what makes organisations fragile (e.g. financial crash 2008) and susceptible to failure. Speakers: n Tony Bendell is an author and a leading figure in the emerging field of Anti-Fragility. n Ron Lynch is an experienced director, with a background of success in managerial, executive and director roles across the private, public and voluntary sectors. n Monica Langa is an experienced executive and non-executive director, as well as an examiner for the IoD’s Chartered Director programme.

Apr

Factory visit to Michelin, Dundee Time: 5.30pm - 7.30pm Venue: Michelin Tyre PLC, Dundee Cost: Members, £20 + VAT Members’ guests, £20 + VAT Non-members’ £30 + VAT The Michelin tyre factory in Dundee is one of Michelin’s top performing production centres. How it became so is both fascinating and inspiring. Join us for a tour of the factory; a chance to see some of the leading edge technology it uses and to hear the story of how the factory went from threat of closure to performing so well. This is an opportunity for members to see at first hand how a combination of clear strategy, strong culture and a focus on playing a prominent role in local society can lead to great economic performance. John Reid, the general manager, will describe the journey that he and his colleagues have taken and he will show us the factory and explain how Michelin’s self-directing teams work so effectively.

Lunch with Jamie Hutcheon of Cocoa Ooze Time: 12.15pm - 2pm Venue: Doubletree by Hilton Aberdeen Treetops, Aberdeen CPD: 1.0 hours Cost: Members, £25 + VAT Members’ guests, £25 + VAT Non-members, £35 + VAT Cocoa Ooze was established in 2008 by Jamie Hutcheon when he was just 17, to fulfil his dream of becoming a professional chocolatier. Cocoa Ooze has developed into a premium

bespoke chocolate company with everything made by hand, using many local ingredients, and employs over 20 staff. Its coffee shop in Aberdeen city centre sells an ever-increasing ranges of chocolate and in January 2017 it moved into Jasmine house to develop their chocolate manufacturing facilities, corporate & wholesale supply and online distribution. Jamie talks about the journey along the road from a start-up to a successful business and what the future may hold now he has secured the backing of BBC Dragons Den entrepreneur, Touker Suleyman.

Jamie Hutcheon with one his fabulous chocolate creations

To book any event, visit www.iod.com/events-community WWW.IOD.COM

IoD Scotland Events

To book online visit www.iod.com/events-community

26 Apr Cyber security for directors Time: Venue: Cost:

9am - 5pm IoD Scotland, Edinburgh Members £345 + VAT Non Members: £395 + VAT

This interactive one-day (9-5) workshop explores, in practical and non-technical terms, current cyber security threats to business and public bodies. Through the use of real life cases and examples this workshop will help directors understand the approaches and techniques used in cyber-attacks and how to prepare for and defend against them. It also addresses internal staff behaviours and the risks these pose to organisations’ security. Our keynote speaker will be Dr Keith Nicholson CISA, CISM. Dr Nicholson has more than 30 years’ practical experience in IT, information security and data modelling. Previously a professor at universities in New Zealand,

Denmark and Scotland he was an early adopter of e-commerce and in 1993 Keith authored Doing business on the Internet. He provides independent advisory services in

03 May

May

Managing your professional career review: Workshop Two

Developing women onto boards

(follow up from Workshop One)

Time: 8.45am - 1pm Venue: IoD Scotland, Edinburgh CPD: 4.0 hours Cost: Members, £50 + VAT Members’ guests, £50 + VAT Non-members’, £66.67 + VAT This is one of the IoD’s twice yearly workshops providing pathways to develop the pool of board-ready women for executive, non executive and trustee roles in Scotland. Network with current chairs and NXDs, hear about their personal journeys and raise your profile among this community in a session delivered by Caroline Donaldson of Kynesis and a guest speaker. If you are seeking a role on a board or are new to a Board and seeking to gain confidence to make you

Time: 9am - 1pm Venue: IoD Scotland, Edinburgh CPD: 4.0 hours Cost: Members, £170 + VAT; non-members £195 + VAT

more effective in your role, then this is for you! The event also comprises networking and a chance to hear how the IoD Board Shadowing Programme works. Coffee, tea and pastries will be served on arrival from 8.45am and a light buffet lunch will also be provided at 1pm with time to network at the end. Caroline Donaldson

For more details on any events, contact Patricia Huth on 0131 557 5488 or via director.scotland@iod.com

cyber security, digital technologies and critical communications to government and business and acts as the bridge between business and technology.

This in-depth half-day workshop builds on the foundations embedded in the personal action plan created in Workshop One. Prior to Workshop Two you are offered a 30 minute, personal, telephone coaching session with an expert career coach. This personal reflection will enable you to understand where best to concentrate your efforts going forward ensuring your attendance at Workshop Two will be even more focussed. Attendees of Workshop One who feel they need further support to turn their actions into real-life, sustainable career activity. The workshop will be led by Graeme Wilkinson of The Career Management Organisation. The workshop will review the personal action plans given to delegates at Workshop One. This workshop will help you realise that your own career management is most effective when driven by whatever your desired next-state looks like to you. It will also help you understand what support already exists within your current networks. WWW.IOD.COM

Branch News

Glasgow branch is here to help you develop your network David Hoey Chair, IoD Glasgow & West of Scotland A bit belated but Happy 2017! Who would have thought the New Year would have come and gone so quickly. It does now feel that the Christmas period was such an age away! The Glasgow and West of Scotland Committee has been busy working on potential themes and events for the forthcoming year, with more to follow in due course. We had some excellent events over the last few months. The food and drink influencers’ event held in September, to which I referred in my last column, had the incorrect venue noted. Sorry! We were in fact regaled with amazing hospitality

by the Crowne Plaza Hotel in Glasgow. In addition to the high-profile speakers, the quality of the food, drink and venue was excellent. with the debate high-powered and helpful as ever. I am sure the same high standards will apply at the Director of the Year celebrations – again hosted by the Crowne Plaza. Our 2016 Christmas reception was fantastic with new members and contacts meeting existing members informally. Some strong connections were established within a relaxed and enjoyable atmosphere. Thanks to those who joined us. The feedback was superb.

Finally, our January 2017 Influencers’ Dinner was piloted by Captain David West, founder of Loch Lomond Seaplanes. David skilfully navigated us through the twists and turns he encountered in his amazing career journey and showed how resilience can pay off. What an inspirational story of leadership we enjoyed. As ever I continue to meet new and existing members. Please contact me if you wish to discuss any IoD issue. As a membership organisation we want to achieve the best for our members and are always open to new ideas. The Glasgow and West of Scotland committee will continue to build on the momentum we have created and work hard to ensure we continue to help our members develop their skills. Here’s to a successful 2017.

Crime pays? Not with Dr Thomson on the case Pictured at the lecture, from left, are Julie Ashworth, Chair of IoD Edinburgh, with Dr Thomson and Peter MacMahon, political editor of ITV Border who chaired the talk

Seonag Mackinnon IoD Edinburgh, Lothian & The Borders Leaders irritated by, taxes, national insurance, modest margins and myriad regulations were presented with an alternative business model by Dr Lesley Thomson at the 2017 annual lecture arranged by IoD Scotland and Edinburgh University Business School. Crime Pays? was the arresting title of the talk. Dr Thomson QC is well-placed to talk about dark business practice and the dirty money washing around the Scottish economy. As Solicitor General, the second highest law enforcement officer in Scotland, she has been a leading figure in the confiscation of ill-gotten gains. More than one gangster has been found during police raids to have in his house a copy of the groundbreaking act of 2002 on confiscation of criminal assets or Dr Thomson’s related definitive text book. The entrepreneurial villains appear to be everywhere – in drugs, of course, but also in art, livestock, exports breaching UN sanctions and in a sophisticated system of breaking EU fishing quotas by siphoning vast quantities of black fish through underground pipe lines. Dr Thomson indicates the asset hunters have also engaged with rogue puppy breeders, sunbed salons, gold Krugerrands and an Edinburgh brothel which is doing spectacular business. Dr Thomson has, from long experience, built up a profile of the lifestyle of criminals. That may mean flash cars and a jet ski in the garage and WWW.IOD.COM

Photo courtesy of Edinburgh University white leather sofas in the lounge. She told the audience gathered at Edinburgh University Business School:”Apologies if I am describing your home but if you have these things, I’m suspicious.” Dr Thomson stands out in society for all the right reasons. She is a crime crusader but also the first woman to be appointed as a nonexecutive director to the board of the Scottish Rugby Union. Of the 121 in history who have occupied the post of Solicitor General, just two have been women. Her role, gender, interest in

criminal cold cases and taste for white wine seem to have made it into a pastiche leading figure in the novel Saints of the Shadow Bible by Ian Rankin. Confiscated criminal assets are reinvested to the benefit of communities. It is not just about the money. There’s a hope that if assets are not ready in waiting when gangsters have done their time, they are less likely to act as role models for the next generation. The message may get through – that crime doesn’t necessarily pay.

Director’s briefing: Tech matters

Your response to business IT needs is crucial for future success Scott McGlinchey, chief executive of Exception and a Fellow of the IoD, tells tech industry commentator Bill Magee how companies can overcome ‘market hype’ surrounding the selling of digital solutions to choose the right one and successfully transform the fortunes of their business...

igital technologies create opportunities to develop new business models, serve customers in innovative ways and run organisations more efficiently and profitability. However, many digital transformation case studies relate to new start-ups, or digital entrants like Uber; they bear scant resemblance to the more traditional and established businesses with complex technology infrastructures developed over decades. The challenge for such organisations initiating digital transformation is complex and multi-dimensional. Not least because they have to tackle it from a different starting point compared with digital entrants. What is common to all is how information technology remains critical to success. But many encounter challenges with their infrastructure and capabilities when seeking to take advantage of the undoubted opportunities that digital creates Such is the rapidity of tech advances that it can often prove bewildering in deciding the best way forward as firms grapple with boosting their revenues, market position and, of course, profits. I really get that. International Data Corporation, the independent market research firm, believes that many organisations are not moving fast enough to address this challenge. IDC predicts that over the next three years, one third of the top 20 companies in every industry will be “disrupted” by new entrants. While this doesn’t necessarily mean they will go out of business, it does mean that revenue, profits and market position will be under threat. A great example of this taking place in the financial services sector is TransferWise, one of the UK’s most successful fintech start-ups which provides an international money

transfer platform based on peer-to-peer technology. There is significant market hype around digital transformation. However, the reality is that most organisations still having some way to travel to realise their digital ambitions – if, indeed, they have defined what these are. So what are the key areas that need consideration for digital transformation initiatives? Based on our own experience of working with clients across different sectors, I believe that, while no means exhaustive, the following areas are absolutely key to create and deliver a successful digital strategy: Leadership - social, mobile, analytics, Cloud and the Internet of Things (IoT) offer innovative business opportunities. But in order to realise benefits from these technologies, organisations need to reimagine their business. This requires executive buy-in and management effort from the top down to create the vision and roadmap and drive through the associated operational changes. Leadership drives transformation, not technology. Capability - many organisations have yet to determine the most effective way to organise and skill-up their IT department for the digital age. Often, they don’t have the requisite in-house skills and developing these internally can take years. Additionally, while most organisations have development and service management methodologies in place these are likely to have been designed for traditional requirements-led initiatives. These methods are inadequate for digital transformation, where projects require rapid and iterative delivery cycles to assess what will work in the market or workplace. Thus, agility is required. Understanding what skills are required, sourcing these skills

“IDC predicts that over the next three years, one-third of the top 20 companies in every industry will be ‘disrupted’ by new entrants ... it means that revenue, profits and market position will be under threat...”

and ensuring appropriate delivery methods are implemented is critical for digital transformation success. IT architecture – organisations will need to assess the impact that newly developed digital services and products have on their current infrastructure. Like all change, digital transformation comes with a price tag. The IT architecture and operating model necessary to support such technologies requires significant planning and must allow for the rapid integration of new technologies t o support your objectives. Many organisations also need to consider how they simplify and rationalise their existing architecture, as overly complex legacy Infrastructures can hinder progress towards your digital goals. If the transformation is not developed towards an agreed architecture framework there is a risk that costs, complexity and availability could all adversely impacted. Governance - who owns the digital strategy, who is leading the transformation and are there agreed policies that underpin design, development and developing delivery? As well as having an integrated strategic vision and roadmap, it is essential that supporting decision-making and governance is put in place to ensure that competing ideas and implementations do not undermine the overall business objectives. Designing an underlying operating model that is fit for purpose and defines ownership and governance for digital is a key consideration. Getting these four areas addressed collectively will help ensure that a properly defined and delivered digital strategy is achieved to the lasting benefit of the business in what remains a fiercely competitive, growing and developing digital world.

n You can catch Bill Magee’s Daily TechPost (most days!) on Twitter #billamagee