Iod scotland summer final

Scotland

Summer 2013 www.iodscotland.com

Published for members of the Institute of Directors in Scotland

New one-day course opens door to more effective boardrooms

Orkneys’ ‘jewel’ to address IoD conference Better directors, better business and a better economy

Director awards salute our business leaders

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Chairman’s welcome

It’s all a question of balance It‘s time we stopped pouring investment into the South East’s ‘golden triangle’ at the expense of other regions and nations of the UK, says IoD Scotland chairman Ian McKay

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t isn’t just acrobats who need to achieve a sense of balance. I recall last year emerging from a meeting in London where a Treasury position had been put that local public sector wages all over the country should be cut – except in the South East and London.

I was then struck by a newspaper billboard I spotted: saying that the multi-billion pound HS2 high-speed rail link investment between London and Birmingham “would benefit north west London as the Olympics have benefitted north east London”.

Let’s leave aside whether HS2 makes any sense.

Government estimates a benefit of only £1.40 for every £1 spent, or at best 2:1. That’s a cost:benefit ratio easily beaten by other rail and road projects. What it hides, of course, is that the taxpayer will still have to find at least £26 billion by the end of the project – assuming the very unlikely achievement of no overspend.

It is a situation mirrored in the debate on new hub airport capacity. Any Scot flying regularly knows that Heathrow is hopelessly overcrowded. At the same time, one can empathise with those residents opposed to a new third runway. So why not increase hub capacity elsewhere? Scotland might be a bit out of the way in reality but what of Manchester? No. Not enough infrastructure, so look to build another new airport in the Thames Basin. No thought that perhaps developing the needed infrastructure in Manchester might have other benefits and be a better long-term investment. Or that it might be a better and fairer prospect for the UK family of regions and nations than just pouring more money in to the golden SE triangle.

I was struck by these recollections when reading the new paper for the

left-wing Jimmy Reid Foundation, in which Margaret Cuthbert argues that the UK economy has become overwhelmingly geared to helping London, leaving Scotland and other UK nations and regions denied crucial resources. She describes a vicious circle where London is the centre of a whirlpool for people and investment, holding back growth elsewhere, particularly in these hard times. Ironically, the situation makes London all the more attractive, thus feeding the problem.

It is a significant issue. She points out that since 1963, UK GDP has on average grown by 2.5% a year, but only by 2% in Scotland. Had Scotland achieved that rate its economy would be 25% larger today. Critically, London’s GDP has been growing at twice the rate of that in Scotland and most other UK regions for some time.

Whatever the balancing effect of the Barnett Formula, that loss of real investment and real jobs is very damaging particularly for the private sector.

Cuthbert’s conclusion is that independence will solve that problem – although she is a bit quieter on some of the other issues and problems that change in governance might bring in its wake. IoD has been careful not to adopt a partisan position on the Independence Referendum but Cuthbert’s useful analysis is a timely reminder – particularly to the Unionist camp – that the current gross inequalities across the UK in infrastructure investment will be unacceptable for the future, whatever the outcome of the referendum.

The need for a better balance in our attitude to the banks is becoming overdue. We keep making contradictory demands of them. Take the furore recently that Royal Bank of Scotland and Lloyds Banking Group have reduced their net lending under the Bank of England’s Funding for Lending (FLS) scheme by £2.6 billion in the first three months of 2013.

Continued on page 5

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

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

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

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For email enquiries, iod.scotland@iod.com

Tel. 0131 557 5488 Fax. 0131 557 5818

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

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

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

Cover picture: Sheila Fleet, one of the high-profile speakers confirmed for the IoD Scotland Conference in November, at the iconic Ring of Brodgar in Orkney.

IoD Scotland Summer 2013 | 03

Executive director’s comment

Time to think about killing sacred welfare cows

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Overseas investment is helping to keep unemployment low but it’s time Scotland used its excellent educational sector to improve young people’s career prospects, says IoD executive director David C. Watt

f you were to look up the Oxford English Dictionary’s definitions of ‘welfare’, they include the definition ‘Statutory procedure or social effort designed to promote the basic physical and material well-being of people in need’. These are sentiments we would all applaud.

However, since 1948 when the foundations of the Welfare State were laid down along with the formation of the National Health Service and the National Insurance Scheme, what was originally conceived as a safety net for all, focused on the disadvantaged people in the community, has grown into an expensive and complex system which seems to be hindering economic progress and prosperity.

It is time to stop blaming the banks for all our economic woes. The welfare system was unaffordable well before the banking crisis, and we need to begin to accept that the whole system needs to be reassessed, ideally from a tabula rasa. Any substantial reforms require an all-encompassing review that includes input from trade unions to right-wing think tanks. There is no point in rushing into changes that may or may not be right – such an instance is what happened with the recent introduction of the bedroom tax. While in principle this tax is sensible, it is not realistic in practice if only because of the severe shortage of appropriate housing stock.

Realistically, any root-and-branch shake-up of the Welfare State will not be implemented this side of 2020, but in the interim there are sensible progressive steps that could be taken to start saving and redirecting money. However, any meaningful reform to the current system is going to have to address the sacred cow of ‘means testing’.

I am at a loss to know why so many people are opposed to this as we do it already through the taxation system and for benefits such as the Winter Fuel Payment. So why not do it for prescriptions and pensioners’ bus passes? Surely ‘means testing’ would be easier than setting up a complicated system to enable the conscientious rich who don’t need the money to give it back or to charity?

04 | IoD Scotland Summer 2013

One of the fundamental problems we have is that at the moment these two huge, bureaucratic monoliths of welfare and tax don’t seem to speak to one another. Most people are in the taxation system and as such are assessed at various levels, so it should not be difficult to integrate them so that eligibility for benefits is determined by how much they earn and the tax they pay.

It would certainly cut down on the unnecessary bureaucracy and expense currently expended on assessing people earning low wages. At present with someone on the minimum wage – £13,500 a year for a 40 hour week – we pay someone to assess and collect tax from them before paying someone else to assess what tax credit and other benefits they are entitled to, and then yet someone else to give it to them. And that’s before local council staff get involved to determine council tax benefit eligibility. Why are we taxing a living wage at all, when all it does in effect is meet the cost of administering it?

But not all changes to the system are about saving money; encouraging people to work is equally as important. I have lost count of the number of employers who have told me how frustrated they are at the 16-hour-aweek rule for anyone on benefits. If an employee works just one extra hour they lose all their benefits. This ‘all or nothing’ approach is madness as it discourages many people from working more hours and from being more productive because they would be penalised.

There also needs to be a refocusing of priorities. I would like to see a welfare system that gives enough money to the people who really need it as well as

“The Welfare State... was originally conceived as a safety net for all, focused on the disadvantaged people... it has grown into an expensive and complex system which seems to be hindering economic progress... ”

Left, Aneurin Bevan, regarded as the ‘father’ of the Welfare State

A question of balance

channelling resources into sensible initiatives.

The Government’s recent decision to stop funding the Remploy factories is lamentable. Remploy has been supporting disabled job seekers with job opportunities for many years and such a retrograde action illustrates how necessary it is for someone to sit down and take a good, long, hard look at how to spend the money society earns in a logical and sensible way.

There are many examples of where Government spending doesn’t seem to reflect any real logic or focus.

For example, take prescription charges in Scotland. At the moment the Government is losing out on an estimated £20m a year by not charging because of the expense of collection, which it argues would exceed £20m. I find that difficult to believe.

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hen there is our defence provision. Few are more supportive of our armed forces than I, but total defence spending of £34bn a year – which exceeds the annual cost of running Scotland – on defending what is, in world terms, a relatively small country?

Perhaps Trident shouldn’t be seen just as a military but also a financial decision. Why are we buying Trident when we are turning the army into a largely reserve force and, indeed, while there is an increasing number of people in the country who cannot afford to buy food?

If I had my way, by 2020 we would live in a country that doesn’t have food banks, that doesn’t close down Remploy, that gives people a good start in life by encouraging employment and then employs them usefully. We need to focus on people in real need and help them towards the job market or whatever is needed to make their lives more comfortable, eg, more affordable housing. Poverty, unemployment or any other of society’s large problems won’t be eliminated by spending money we don’t have or not properly targeting what we do have.

It is time to consider innovative and radical solutions for our ailing welfare state before it expires of its own accord. Going back to the dictionary, the first definition of welfare is: “The health, happiness, and fortunes of a person or group”. If we are to create a society for the good of all, then we need to do things differently to bring about real, significant and lasting change.

Continued from page 3 Less prominent is the fact that we are asking the banks to recover and renew their balance sheets quickly, seeking to avoid any repeat of 2008.

Similarly, the vast amounts of public investment which shored up some of the banks rely on good performance and solid financial services if the public are to get that money back, maybe even get a profit from their investment. Yet pressure has mounted on RBS to sell off its lucrative and well“In truth we need banks to performing US Citizen arm – a key area those profits would come from. apply balance – make At its most basic, IoD has been prominent available the funds to allow with others in pressing all the banks to improve lending to the SME market – to take good, strong businesses to more chances, in effect – while at the same invest and expand and be time condemning the casino attitudes which more cautious where the underpinned too much of previous lending business case doesn’t behaviour in that same sphere.

In truth we need banks to apply balance to stack up...” their behaviour – make available the funds to allow good, strong businesses to invest and expand and yes, be more cautious where the business case doesn’t stack up. But err on the side of the former if our economy is to improve and our Scottish reputation for entrepreneurship and new ideas is to be supported.

Bring in the acrobats; get the show on the road.

Member testimonial

Benefits of the IoD... access and influence

by Stuart Miller, Chief Executive, Young Enterprise Scotland I had the good fortune to attend the Glasgow and West of Scotland IoD Influencer Dinner with Colin Robertson, CEO of Alexander Dennis Ltd recently. The fact that the event was hosted by Barclays Wealth gave me the opportunity to link in with one of my sponsors on an informal basis.

I found the presentation by Colin superb, and I gained many hints and tips to apply in my leadership role. During his presentation Colin touched on the importance of supporting young people, particularly at this time of high youth unemployment.

Colin had to rush away after the dinner so I missed the opportunity to have a one-to-one with him.

The following day I sent an email to Colin’s PA requesting a meeting to talk to Colin about Young Enterprise Scotland and was delighted to get a slot in his diary.

The meeting went really well. When I asked Colin what he knew about Young Enterprise Scotland, he gave me the great news that he had done it in school. A very fruitful meeting followed, which resulted in Colin agreeing to support YES with volunteers, work placements and even considering some financial contribution. We’re now looking forward to developing a great partnership with Colin and Alexander Dennis Ltd. All this would not have been possible without attending the Influencers’ Dinner. My thanks to Laura Gordon and the team for arranging the events.

• Young Enterprise Scotland is a Scotland-wide charity and has been working with young people aged 5 to 25 for 40 years. Our aim is to inspire and prepare them to reach their full potential and succeed through enterprise. We do this through meaningful interventions and training aimed at creating a movement of engagement, on a number of occasions, throughout a young person’s development. Employability, enterprise and empowerment are at the heart of all our activities. All our programme delivery supports our ethos of ‘learning by doing’.

n To find out more, see www.yes.org.uk IoD Scotland Summer 2013 | 05

News

Tomorrow’s leaders first!

Saltire Fellowship is committed to developing entrepreneurial leadership for Scotland

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he future of Scotland’s business ‘ecosystem’ looks strong – thanks to the growth of the Saltire Foundation and the work of its ‘Fellows’.

The Foundation provides support and helps develop the country’s up-and-coming leaders.

The Saltire Fellowship was created in 2009 to give talented Scots the skill sets, networks, entrepreneurial mindset and ambition to grow Scotland’s businesses. The Saltire Foundation is currently looking for candidates for the 2013-2014 Saltire Fellowship, with places open to companies looking to develop their rising stars or plan for top management succession.

This highly effective eight-month programme incorporates an intense four-month learning experience at Babson College in Boston, United States (the number one business school in the world for entrepreneurship); a learning experience in China; and a three-month executive project with a high-growth Scottish company or with their sponsoring employer.

There are two routes to entry: ‘Company Fellows’, where companies apply and fund the journey on behalf of one of their talented

06 | IoD Scotland Summer 2013

employees; and ‘Open Enrolment’, where candidates who are looking to make a step change in their career self-apply with funding available through various streams.

In both cases, the experience has, time and again, proved to be transformative. Open Enrolment Fellows have used it as a springboard to new positions or new careers, and companies have equipped their future leaders with stronger commercial skills, global market understanding, greater ambition and hands-on experience of working in different environments.

It’s an experience that provokes a hugely positive response from participants. Following his Fellowship in 2012, Jeff Conley sat down with the CEO of his company and asked him what he felt the programme had changed in Jeff.

His comments included: • “Enhanced building of relationships with key stakeholders in our ecosystem, including our people executives in our parent company.”

• “Improved ability to present effectively to executives, including taking the time to have them listen to and understand a story rather than just rushing through the slides.”

• “Increased level of maturity and patience” The HR director of leading distillery group Edrington said that the Saltire Fellowship “has provided us with the opportunity to work with more mature, highly qualified individuals, who bring a vast amount of new thinking and enthusiasm to our business.

“The calibre is extremely high and everyone who has had exposure to this level of Saltire

graduate has been overwhelmed by their professionalism, thoroughness and desire to succeed.

“We plan to sustain this relationship going forward and hope that both Edrington and the Saltire fellows gain much from the experience.”

Many Saltire Fellows are returning to work towards director level positions making the IoD a natural professional body for them. 2009 Fellow Ian Stevenson – now MIoD – commented: “The Saltire Fellowship transformed my perspective on business. I am on the boards of several high-growth companies, and to give something back to the community I volunteer as a director for charity Forth Sector. The IoD ‘Role of the Company Director’ course gave me a deeper understanding of the UK legislation and approach to governance, and additional credibility as a director.”

Want to know more?

If you think this is the right opportunity for you, someone you know or a member of your team, please direct them to http:// saltirefoundation.com/fellowship or get in touch with Sandy Kennedy, CEO at sandy.kennedy@ saltirefoundation.com

Financial advice

IoD Glasgow offered free support from Healthy Working Lives Healthy Working Lives (HWL) has created a special package of support for IoD members in Glasgow, with businesses given the chance to access support and advice on their health and safety responsibilities free of charge.

Its NHS Health Scotland Glasgow-based health and safety advisers have designed a tailored package which includes: • A workplace assessment/advisory visit (up to 2 hrs) • A telephone consultation (up to 1 hr) • An in-house HWL certificated training session delivered in your premise for your staff (Managing Health & Safety- The Basics) Healthy Working Lives’ network of advisers have a deserved reputation for delivering expert health and safety, occupational health and health improvement to employers. This unique package addresses some of the biggest problems businesses face in ensuring they are complying with their responsibilities as well as highlighting other aspects of HWL’s services, which include one-to-one support, training and awareness sessions as well as a range of resources and tools.

This offer is free, and all information disclosed and guidance provided is confidential.

If you would like to book this offer, contact our Adviceline on 0800 019 2211 and press option 1.

This offer is valid until the 31st July 2013.

New triumph for Carbon investment strategy Carbon Financial Partners has been named ‘Investment Adviser of the Year’, at the Professional Adviser Awards 2013. Carbon’s managing director, Gordon Wilson (pictured above, centre), was presented the award by event host, comedian Jo Brand.

Gordon was delighted that the team has been recognised in this way. “Our approach to investment has been highly successful and is quite different to that of our competitors. The process is thorough, based on academic research and it focuses on maximising client returns through minimising cost and only taking risks that have been proven to be worth taking. Our clients really understand and appreciate it, which is the main thing, but it’s very exciting to receive independent recognition of the strength of our investment process”.

with

It’s time to hit the pensions switch Preparing for your auto-enrolment staging date isn’t an issue that can be delayed – even if the date seems a long way off, says Stuart Moment, Chartered Financial Planner for Broadstone Although the impact of auto-enrolment for many employers will be significant, there are many organisations which have not considered moving it on to their corporate agendas. For those who have, there has been a realisation that this is more than just a pensions issue.

Employers will have to consider if they have the resources necessary to comply with legislation or use external advisers, as project management will be essential. Auto-enrolment is just as much a systems and governance issue, where risks of non compliance should be identified, as well as a financial one. Employers should be reviewing their employees’ (and services providers’) current terms and conditions and the related pensions documentation as current information is likely to be out of date.

Some employers perceive their staging date to be too far into the future to be engaged in auto-enrolment discussions now. However, at the very least, they should be assessing the size of their workforce as there are clearly defined criteria for ‘eligible job holders’ who have to be identified and automatically enrolled into a qualifying work place pension scheme. The identification of eligible jobholders can be complicated with the possible inclusion of agency staff, contract workers, even some ‘self-employed’. The data challenge of identifying who these people are should not be underestimated.

It is vital that the pension scheme to be used for auto-enrolment is fit for purpose. Having an existing pension scheme with a particular provider does not automatically guarantee that the current provider will be prepared to deal with an employer’s auto-enrolment population.

Employer communication to employees is a key element in the auto-enrolment process as some employers may not have communicated with their workforce on any scale before. The Pensions Regulator has highlighted that they will have a keen interest on clear, targeted communications, making sure that each employee receives communication that is relevant to them.

It is not only the employer who will have concerns. Individuals (although they can opt out) will have to contribute to the scheme as well as the sponsoring employer. Employees who have registered to protect pension scheme benefits from the tax impact of exceeding the maximum lifetime pension savings allowance may lose that protection if they do not opt out. Professional advice here is vital as employers cannot induce any member of their workforce to opt out of the company pension scheme, and getting this wrong can prove to be an expensive mistake.

Although court cases have set precedents suggesting that a default retirement age can be set provided it is objectively justifiable, ‘normal’ retirement ages were effectively abolished in April 2011 by the Equality Act. The idea that someone has a set retirement age has changed. Pension schemes should form crucial elements of the employers reward strategies for their employees to aid business planning, as the development of not when an employee stops working, but how, becomes the normal practice.

Want to know more?

Stuart Moment, Private Client Partner - Head of Northern Region, is a Chartered Financial Planner for Broadstone.

He can be contacted on 0121 265 7218 or 07581 023 268 E: stuart.moment@broadstoneltd.co.uk W: www.broadstoneltd.co.uk

IoD Scotland Summer 2013 | 07

IoD Scotland Director of the Year

Duo share spotlight as IoD salutes its director stars IoD Scotland Director of the Year Awards 22 March 2013

Chairman’s choices: Ian Marchant from Scottish and Southern Energy and Lester Cameron, who has worked tirelessly for the IoD in its Aberdeen and Grampian branch, received the Chairman’s Award (below). Below right, Vivien Buchan, who won the Edinburgh Napier University Emerging Director Award

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wo of the country’s leading business figures were honoured by IoD Scotland at a ceremony in March when Roy MacGregor OBE, chairman of Inverness-based Global Energy Group, and Dick Philbrick, managing director of Clansman Dynamics Ltd, were named as the IoD’s Directors of the Year.

Roy won the Director of the Year in the Businesses over £30m Turnover category for his outstanding vision, which has been crucial to the success and strong growth of the company since its launch in 2005.

IoD Scotland executive director David Watt said: “Roy’s leadership of Global Energy Group is extremely impressive, driving turnover to £200m and creating a worldwide workforce of 3,500 in just eight years.

“A series of acquisitions have been key to its success, including the Nigg shipyard which has benefitted not only the company but the Highlands economy by bringing oil rig repair work back to the Cromarty Firth.”

Dick Philbrick’s ability to steer the East Kilbride-based robotic foundry equipment manufacturing firm through a sustained period of growth despite the global engineering sector experiencing a downturn saw him claim the Director of the Year Award for Businesses of up to £30m Turnover. He was also named the Glasgow and West of Scotland Regional Director of the Year.

David Watt commented: “In what is a great home grown success story, Dick’s leadership at Clansman Dynamics is very impressive, increasing turnover by a spectacular 65%, growing profitability and increasing its

08 | IoD Scotland Summer 2013

international presence to 41 overseas markets, while creating a satisfied workforce.”

Two special Chairman’s Awards were also presented on the evening, one to a man for his enormous contribution to the business landscape of Scotland, the other for his selfless work at branch and regional level for the IoD. Ian Marchant’s role as CEO of Scottish and Southern Energy has helped bring about unprecedented success for what is now Scotland’s biggest company; it is the UK’s third largest supplier of power and gas and with a turnover of over £32 billion, it matches that of the Scottish Government’s entire expenditure. Praise for his work comes from as notable a figure as Lord Robert Smith, who described Ian as “the best CEO I have ever worked with”.

The IoD relies heavily on its small army of volunteers to ensure its work reaches out across Scotland, and Lester Cameron’s commitment to the IoD in the Aberdeen and Grampian region over many years saw him also take home a special Chairman’s Award in recognition of his exceptional contribution.

Other winners on the evening included Donna Malone, global HR director at the Howden Group Ltd, who took home the Female Director of the Year award, and Simon Milne, chief executive, Scottish Wildlife Trust, who was named the SCVO Third Sector Director.

Donna was praised as a commercially focused director and leader, but one who views her role through a collaborative lens. Simon was rewarded for his impressive work in embedding a culture of change

Leading the way: Above, event compere Kaye Adams with Donald MacGregor, who collected the Director of the Year Award for Businesses over £30m turnover on behalf of his father, Roy; and Dick Phillbrick, Clansman Dynamics, who was named Director of the Year for Businesses up to £30m. Right is Simon Walker, IoD director-general within the Trust, increasing income, bringing in more members and creating a more effective campaigning body.

Professor Seona Reid cbe was named MCL Public Sector Director, with her strong vision and ability to deliver making her the stand-out finalist according to judges.

Dennis Overton, Aquascot Ltd, won the Director Award for Workplace Health, Safety and Wellbeing; Paul Easto, chief executive Wilderness Scotland, took home the award for Sustainability Leadership, and Vivien Buchan was named Edinburgh Napier University’s Emerging Director.

Judges praised all three for their enormous contributions to their respective organisations. Dennis has driven his company to the Gold Healthy Working Lives award, while Paul Easto has gone ‘above and beyond’ in his internal and external promotion and delivery of a sustainable ethos. Vivien Buchan’s transformational leadership has helped internationalise Insights Learning and Development.

Continued on page 10 » » »

Above, The Female Director of the Year Award went to Donna Malone, of the Howden Group, presented by Mairi Mickel of the Mickel Foundation Right, Dennis Overton receives the Award for Workplace Health, Safety and Wellbeing from Margaret Burns cbe, NHS Scotland

IoD Scotland Summer 2013 | 09

IoD Scotland Director of the Year Awards

Continued from page 9 Unusually, joint winners were announced in the Flexible Working Policies category – Andrew Cunningham and Andrea Horner, of Barclays, whose joint work on introducing more flexible working policies was saluted by the judges.

Each of the IoD’s six branches in Scotland also named their own Regional Directors of the Year.

They were: • Aberdeen & Grampian: Leo Koot, Managing Director, TAQA Bratani Limited • Edinburgh, Lothians and the Borders: Brian Williamson, Managing Director, Jumpstart • Fife & Central Scotland: John Lupton, Chief Executive, Scott & Fyfe Limited • Glasgow & West of Scotland: Dick Philbrick, Chairman, Clansman Dynamics Ltd • Highlands & Islands: Caroline Campbell, Director, The Ironworks Venue • Tayside: Tony Banks, Founder and Chairman, Balhousie Care Group.

Kevin Lyons was presented with the Non-Executive Director of the Year Award, in recognition of his work with a number of Boards across Scotland. The judges praised his “passion for the Boards he joins,” and his ability to act “as a true critical friend”.

While the majority of the IoD’s winners were highly experienced business leaders, the awards also celebrated those just starting their careers through our partnership with Young Enterprise Scotland (YES).

This year two students – Emma Davidson from Belmont Academy in Ayrshire and Becky Small, from Fortrose Academy on the Black Isle – were named joint winners of the YES Director of the Year Award, as selected by an IoD representative at the Young

10 | IoD Scotland Summer 2013

Enterprise Scotland Awards earlier in the year.

In addition, Steven Sibbald, a director with Springboard Europe Ltd, was named as the Prince’s Trust Youth Business Scotland Director of the Year.

Steven had received crucial assistance from Prince’s Trust at key times in his fledgling business career, and that had helped him to grow the company’s client base and turnover during 2012-13.

IoD executive director David Watt was delighted both with the evening and the calibre of the award winners. “These awards are Scotland’s premier recognition platform for the top directors from all sectors – third, public and private. It is vital recognition and celebration of success, ambition and excellence in the profession of directorship and leadership.

“The awards have become synonymous with recognising and celebrating the successes of Scotland’s business leaders and their efforts to drive forward innovation and growth for their organisations and the economy. Even in these challenging times, we have leaders in all aspects of our society who are making a real difference.

“It is important that their leadership and general contribution is publicly acknowledged. As such, it’s therefore with great pride that we’re able to congratulate such hardworking, ambitious individuals who are making a valuable contribution to Scotland today.”

All smiles: Above left, Lucy Colquoun collects the Director Award for Sustainability on behalf of Paul Easto of the Wilderness Trust from Jane Wood, while above, dual winners Andrew Cunningham and Andrea Horner of Barclays receive the Award for Flexible Working from Aileen Campbell MSP, Minister for Children and Young People Facing page, near picture, Public Sector Award winner Professor Seona Reid cbe of Glasgow School of Art, with Kaye Adams and MCL’s Ken Robertson Far right, Steven Sibbald of Springboard Europe Ltd won the Prince’s Trust award, presented by Geoff Leask

Future leaders: Young Enterprise Scotland Award winners Emma Davidson and Becky Small, with Kaye Adams and Simon Walker Above, Simon Milne, Scottish Wildlife Trust, with his Third Sector Award

Each of this year’s winners received a unique, specially commissioned trophy, designed and produced

by Sarah Peterson of Caithness Glass, a framed certificate and a tartan gift produced and provided by Kinloch Anderson.

A charitable draw held during the evening raised ÂŁ4,083 for The Prince & Princess of Wales Hospice in Glasgow

IoD Scotland Summer 2013 | 11

IoD Scotland Conference

Better directors, better business and a better economy – that’s the goal of the

IoD Scotland Annual Conference 2013 Date: Friday, 1 November Venue: Gleneagles Hotel Time: From 9am - 5pm Full Conference package includes Black-tie Dinner and overnight accommodation

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etter directors, better business and a better economy – that’s the theme of this year’s IoD Scotland Annual Conference, to be held in the world-renowned Gleneagles Hotel on Friday, November 1.

IoD Scotland is passionate about excellence in leadership and directorship and at this year’s conference you will hear from some of the most knowledgeable and successful business leaders, who will share their experience and vision for how directors can lead Scotland to a brighter economic future.

The conference programme is delivered through plenary sessions, high-level workshops and provides time for the attendees to network and meet with key influencers and business leaders during the conference and at the Black-tie Dinner in the evening.

But this year we are making some changes to proceedings by turning the focus on…

YOU. We are introducing more interactivity than in previous years, with informal cross-table debates with other delegates, led

by IoD mentors, allowing you to discuss key issues in smaller groups.

You’ll have the opportunity to listen to the

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thoughts of your fellow delegates about what has been said by our keynote speakers and make your own contributions as we help you improve your performance as a director.

We will also use the conference to showcase the value of formal director development, with presentations by directors who have benefitted from the IoD’s own suite of director development courses and qualifications, including Chartered Director accreditation.

High-profile speakers drawn from across Scotland’s diverse business spectrum will make their own contributions to the event.

Among those already confirmed are Sheila Fleet obe, the renowned Orkneysbased jewellery designer who was honoured for her services to Scottish business – an award which was as much for services to Scotland and her tireless promotion of the country’s excellence in the field of design and craft manufacturing skills as for the success of her company.

Donna Malone, recent winner of IoD’s Female Director of the Year Award and HR director at the Howden Group Ltd, will explain her role in piloting the company through several years of impressive growth while managing an ever-increasing workforce.

In addition, we are delighted to announce that the conference will again be playing host to BBC Radio Scotland’s popular current affairs show, Brian Taylor’s Big Debate, and two young entrepreneurs from the Prince’s Trust Youth Business Scotland will talk about their fledgling business careers and the support they have received from the charity.

This is a full day conference, one that will

Business leaders: Conference attracts Scotland’s most senior business figures - pictured at last year’s conference, Colin Robertson, ADL both inform and inspire, delivering real benefits that can be taken into the workplace on the Monday after conference as you start on your new path to becoming a better director.

The day includes lunch, refreshments and plenty of opportunities for networking. Full Conference packages include one night’s Bed and Breakfast accommodation at the hotel, as well as attendance at the Dinner – a glorious black tie affair at which you’ll be able to network with Scotland’s business leaders.

The event will be hosted by Gleneagles Hotel. This award-winning world-class venue has previously hosted the G8 Summit and is regarded as a true five-star location, a fitting venue for an event of this magnitude.

Want to know more?

To register your interest for further details, email iod.scotland@ iod.com.

You can also bookmark the conference website page – further details and online booking facilities will be available shortly: www.iodscotland.com – click on ‘Annual Conference’

IoD Scotland Conference Ideal venue: Gleneagles (right), a former host to the G8 Summit, will be hosting the Ryder Cup in 2014

Gleneagles... a superb venue... with a world-class pedigree

Below, guests will have access to the hotel’s spa complex and its acclaimed golf courses.

Pictured is the King’s Course

Sponsorship enquiries: interested in getting your business involved with this event?

Contact the IoD on 0131 557 5488 or First City Events on 01577 865498

Conference supporters

IoD Scotland Spring 2013 | 13

Events diary IoD director development course: LEADERSHIP MASTERCLASS

How to lead a business Course:

Date:

Venue:

Cost:

Ros Taylor Master Classes on Leadership On six days, from 17 October to 21 November Royal Scots Club, 29 Abercromby Place, Edinburgh Each half-day workshop costs £150 + VAT (members) £175 + VAT (non-members) Book all six sessions for £750 (members); £850 (non-members)

This series of six half-day master-classes aims to provide practical learning and focuses on the different behaviours and skills needed to be effective on boards.

Of relevance to individuals who are currently directors and those about to be appointed within the private, public and third sectors, this series is for those serious about their professional development. The workshops can be taken independently and may be particularly relevant to those who have previously attended an IoD Scotland’s ‘Role of the Non-Executive Director (NXD)’ course or ‘Women on Board’ events.

Workshop Content Commandments of Leadership Success Thursday, 17 October Ros Taylor shares the results of her research What type of business leader are you?

Creative...?

with 80 top CEOs from the FTSE 200 to discover what made them successful. She will share their 10 commandments for success and the secrets that kept them at the top. This interactive session will have you practising these skills before you leave!

What kind of leader are you?

Thursday, 31 October There is no template for a leader. All are different as everyone has their own strengths.

However these strengths need to be uncovered.

This section explores participants’ preferred leadership styles and how they can make the most of them. Employees are required to interact with other styles and coping with that diversity will be addressed here.

Leading from the front Thursday, 7 November A leader requires a vision for the group to move forward and also a focused way to communicate that vision. This part of the programme looks at the leadership skills necessary to make that vision memorable and do-able for the rest of the team, department or organisation. The skills of charismas will also be discussed and practised.

Confident Leadership Thursday, 14 November Leaders stumble without confidence. What is it – and how can we get more of it? Also in this session how we use power will be confronted head on. Power has acquired a bad name. How can leaders change that perception? This session’s focus is on using power as a leader to make the tough decisions while supporting and caring for staff.

Making an Impact Thursday, 21 November Being creative and fostering creativity are key leadership skills. Doing things differently is often a critical component in market place success, especially in the pharmaceutical industry. Here individual and team creativity is benchmarked and ways of enhancing it practised.

What type of business leader are you?

Confident... charismatic...?

Presentations to win business Date tbc Making an impact when making a presentation is the aim of this Masterclass. Also included is the ability to put a presentation together speedily without jeopardising quality as well as being so relaxed that presenting to any size of group is a rewarding experience and not an aversive one.

Costs • Each half day workshop (9am-1pm) costs £150 plus VAT for IoD members and £175 plus VAT for non-members • Book all six half-day workshops at the reduced rate of £750 + VAT for members and £850 plus VAT for non-members.

Funding available • Companies with fewer than 150 employees may be eligible for a 50% grant via Skills Development Scotland’s Flexible Training Opportunities programme.

Individuals may be eligible for Individual Learning Account funding.

For further information go to www. skillsdevelopmentscotland.co.uk/our-services/ services-for-employers/training/flexibletraining-opportunities.aspx

Book your place(s) now by calling IoD Scotland on 0131 557 5818 or email iod.scotland@iod.com 14 | IoD Scotland Summer 2013

Events diary

IoD courses deliver the inside track on preparing for NXD positions Event: IoD Non-Executive

Director courses Date: Thursday, 31 October Venue: Kingsmills Hotel, Culcabock Rd Inverness Date: Thursday, 14 November Venue: IoD Glasgow Hub,

West Regent Street, Glasgow Date: Venue:

Prices:

Tuesday, 26 November Royal Scots Club, Abercromby Place, Edinburgh For all three course venues is £299 + VAT

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

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

Who should attend?

Individuals who are currently a non-

Non-executive opportunities

The IoD Scotland website regularly carries details of non-executive directorships available throughout Scotland.

In recent months the website has carried details of a number of positions, including with NHS Ayrshire and Arran and the Melting Pot, Scotland’s Centre for Social Innovation based in central Edinburgh. For more on this position, see the inside back cover. See www.iodscotland for future positions as they become available.

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

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

• Detailed guidance on finding, selecting, appointing and rewarding NXDs. Course benefits It will help improve your current performance as an NXD and help prepare you for the time when you may be appointed as an NXD. All delegates will receive extensive course notes. There will be ample opportunity to share experiences and future aspirations.

Companies with fewer than 150 employees may be eligible for a 50 per cent grant via Skills Development Scotland’s Flexible Training Opportunities programme.

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

IoD director development course: Practical Governance

No-nonsense approach to governance Date: Tuesday, 12 November Venue: Edinburgh Cost: from £225 + VAT This one-day course is a no-nonsense approach to practical governance, based on wide and deep experience, without jargon or short-cuts. It addresses the fundamental issues and applies practical solutions. The aim is to deliver significant benefits through cultural change that is pivotal and long term.

Who should attend?

This course will be relevant to executive and non-executive directors, board trustees and those in senior management positions reporting directly to the Board. It is appropriate for private, public, government and the third sector.

Course content • How boards operate effectively – the value of independence and constructive challenge

• How good governance can be embedded in everyday corporate culture • Does governance pay? Measuring governance, quality of engagement and maturity of outcome • Composition, evaluation and development of boards and committees • Defining and maintaining divisions of responsibility • Reputational risk, systems and controls • (Re-) Building mature and trusted relationships with Regulators Course benefits Help improve the performance of your board and governance systems.

The course will explain how to develop a good governance culture throughout the organisation and explore how non-executives can best add value. Useful insight is also offered on how to develop a healthy relationship with regulators.

Course tutor David Jackman is a non-executive chairman of a financial services company.

As FSA head of ethics and education and CEO of a Government agency David introduced wide-reaching reforms to governance. He chairs the British Standards Committee on Sustainable Communities.

Costs • IoD Members booking before 30th June 2013 - £225 plus VAT • All other bookings - £299 plus VAT * Companies with fewer than 150 employees may be eligible for a 50% grant via Skills Development Scotland’s Flexible Training Opportunities programme. Individuals may be eligible for Individual Learning Account funding. For further information go to www.skillsdevelopmentscotland.co.uk/ourservices/services-for-employers/training/ flexible-training-opportunities.aspx

IoD Scotland Summer 2013 | 15

Director development

Date: 29 August Venue: Edinburgh Napier University, Craiglockhart Time: 8:30am - 13:30 Price: £199 + VAT IoD Scotland and Edinburgh Napier University, in association with Hamish Taylor, are hosting an innovative event that aims to take performance lessons from the sporting arena and apply them to the business world.

Delegates will be encouraged to consider how business issues such as innovation, customer insights, personal performance, mental state, team and project management can be addressed by considering approaches taken by world-class leaders from the sporting world.

Led by renowned business coach Hamish Taylor, this is a highly successful masterclass that has been produced across the globe.

With Hamish as your host for the day, you will be introduced to a series of talks, workshops and interactive exercises that will consider whether to make a breakthrough in terms of your organisation’s performance you need to look outside your current environment for new lessons and examples of highperformance leadership and results.

Hamish has an outstanding track record in delivering business breakthroughs in a wide variety of industries. A recognised leader in the fields of innovation, branding and marketing, his ability to take ideas from one arena and apply them to produce breakthroughs in another led to the Inspired Leaders Network giving him the title “Master thief ”. Among many others, Hamish has used: • A yacht designer to put beds into aeroplanes • Disney to sort the queuing problems at Heathrow • Rugby referees to challenge current approaches to risk and compliance management!

The day will deliver a set of practical lessons and tools that can be taken back to the workplace immediately.

Since 2004 Hamish has worked with over 100 companies in 25 countries assisting them with brand, customer and/or performance challenges. Recent high-profile speaking engagements have included • Running a televised masterclass for the finalists of the India entrepreneur of the year awards • Sharing a platform with the Prime Minister of Latvia to address that country’s business

16 | IoD Scotland Summer 2013

Business can take lessons away from the sporting world leaders; and a • Masterclass on behalf of the London Organising Committee of the Olympic Games.

Hamish will be joined in delivering the masterclass by equally renowned coaches with strong links to sport. Scott Dixon, a former pro golfer and PGA professional golf coach, is renowned for his innovative and unique coaching style to solve golfing problems.

He will address the event on ‘Creating the right mental state and environment’ from the perspective of the golfing world.

He will be joined by Roly Reid – a former professional and Scottish international rugby player. Roly now owns On the Ball Ltd, a hands-on performance coaching company for businesses and sports teams. Through years of

experience in the pressured environment of sport Roly will address what can be learnt about best personal performance from a 100m sprinter and why a relay baton handover is a good model for team and project management.

• You will learn from experts in their field • Fast-paced, motivational and fun learning environment for delegates • You will take back highly transferable skills to the workplace • You will gain insights from at least three different disciplines in one day • You will leave inspired, energised and full of confidence Book online at www.iodscotland.com or call 0131 557 5488

Events

Fife set for a close-up of shipyard’s own ‘Goliath’ Event:

Venue:

Date: Time: Price:

“The presentation will cover how Babcock went about the procurement and how very high quality standards were set, determined and achieved through the procurement process.

There will also be a site tour to view the crane...”

Procurement & Quality: The Goliath Crane & the Future Aircraft Carrier Babcock International Group, Rosyth Business Park, Rosyth, Dunfermline, KY11 2YD Wednesday, 19 June 6.00pm for 6.30pm £15.00 for members, £20.00 for non-members

IoD Fife is delighted to invite members and nonmembers to see the Goliath crane at the Rosyth naval dockyard and to hear why the crane is so critical to the future aircraft carrier project for Babcock.

Babcock’s future aircraft carrier project team is a member of the UK’s Aircraft Carrier Alliance. It has responsibility for delivering a significant element of the Royal Navy’s two new 65,000 tonne aircraft carriers. This will require extensive skills in ship design, modern modular construction techniques and through-life support.

Key activities will include CAD-based modelling, design and development work, the manufacture of the bow section and a number of upper blocks and whole ship assembly at Rosyth. This will involve the processing of many thousands of tonnes of material well into the next decade.

The assembly and integration stage involves the use of heavy lifting, alignment and fabrication skills

dealing with modules weighing in excess of 12,000 tonnes and lengths of over 1,10 metres. Part of the work included the purchase and operation of the Goliath crane.

The presentation will cover how Babcock went about the procurement and how very high quality standards were set, determined and achieved through the procurement process. There will also be a site tour to view the crane.

Refreshments of tea/coffee and sandwiches will be provided on arrival Please note that all attendees will be required to provide a shoe size on registration as safety boots will need to be worn.

To book...

on any IoD Scotland event, see www.iodscotland.com, call 0131 557 5818 or email the office on iod.scotland@iod.com.

Alternatively, see the insert with this issue

What makes you happy? Leveraging value and tax savings through effective financial planning

Date: Tuesday, 10 September Time: 7.45am for breakfast,

8.30am seminar begins Venue: Princess Royal Suite,

The Royal Scots Club,

29 Abercromby Place,

Edinburgh, EH3 6QE Cost: FREE

This complimentary seminar is part of a national series of events being run by the IoD and Close Brothers Asset Management that will help IoD members highlight, develop and

implement plans which suit their financial needs and unique situations.

In an ever-changing economic environment the need for long-term strategic thinking is crucial to help realise your goals. Clarity and control are key to this and nowhere more so than in financial planning.

We will be looking at the following specific planning areas which may be new to attendees: • Carrying forward of pension contributions – ensure you use next year’s allowance now and claim up to 45% Income Tax relief • Managing your CGT exempt allowance – use it or lose it • The perils of a static investment model – how to ensure your assets are positioned correctly at all times.

• Pilot Trusts – safeguarding your assets for future generations.

This seminar will cover all these aspects and many more.

IoD Scotland Summer 2013 | 17

Events diary

Games come to the Highlands Latest on business opportunities and challenges being created

by Glasgow 2014 Event 1: Lunch with Gordon Arthur, Communication Director, Glasgow 2014 Date: Thursday, 12 September Venue: Kingmills Hotel, Inverness

IV2 3LP Time: From 11.45am Cost: Free Sponsored by Highlands & Islands Enterprise This lunchtime session offers a superb opportunity to meet with and talk to Gordon Arthur about the business opportunities created by Glasgow 2014 This event, which is sponsored by Highland and Islands Enterprise, will allow attendees to network over a free buffet lunch prior to hearing from Gordon Arthur, who is

18 | IoD Scotland Summer 2013

Communications Director for Glasgow 2014.

Following Gordon’s talk there will be a Q&A which will allow delegates to find out more on the procurement opportunities with this prestige event.

Event 2: Leadership Lecture with Gordon Arthur, Communication Director - Glasgow 2014 Date: Thursday, 12 September Time: 1630 Venue: University Highlands & Islands

(UHI), Inverness, IV3 5SQ Cost: FREE Sponsored by Highlands & Islands Enterprise

At this the second of two events held in Inverness, Gordon Arthur will outline the challenges faced with hosting Glasgow 2014.

At this lecture, which is sponsored by Highlands and Islands Enterprise and The University of the Highlands and Islands, Gordon will discuss the organisation and leadership of this major international sporting event and the opportunities it brings Scotland.

It will be followed by a Q&A chaired by the University Principal, James Fraser.

To book...

on any IoD Scotland event, see www.iodscotland.com, call 0131 557 5818 or email the office on Julie.Blackwood@iod.com.

Alternatively, see the insert with this issue

Events diary/ Press and PR

Business leaders offer masterclass on secrets of their success Date: Tuesday, 17 September Venue: Riverside East Building, Robert Gordon University, Garthdee, Aberdeen Time: Registration & Breakfast from 7.30am Conference begins at 8.30am Close & Networking Lunch from 1-2pm Bob Keiller, CEO of Wood Cost: See below Group plc Some of Scotland’s most successful business leaders will be revealing the secrets of their success at an interactive leadership masterclass to be held in Aberdeen on Tuesday, September 17.

The half-day event Sharing the Secrets of Success is organised by IoD Aberdeen and Grampian branch and will include two hour-long leadership masterclasses led by the business leaders.

The business leaders confirmed to lead workshop sessions at this event are: n Raymond O’Hare, formerly Scotland MD, Microsoft How the board can make a difference n Patrick Machray, CEO, ANM Group: Taking a helicopter view of the business in a changing economic environment n Bob Keiller, CEO of Wood Group plc Building a business based on values n Stewart Spence, Owner, The Marcliffe Hotel Delivering excellence in the service sector n Alfie Cheyne, CEO, Ace Winches Creating an international business With limited numbers of participants in each masterclass session, delegates will be able focus on the subject in some detail and gain real benefit from your time with the masterclass leader.

To book...

An ‘Early Bird’ discount rate for delegates will apply until Friday, August 2. During this period bookings will be £90 (+ VAT) for IoD members and £105 (+ VAT) for non members.

After August 2 the booking fee will be £125 (+ VAT) for members/non members.

To book go to www. iodscotland.com or email Julie.Blackwood@iod.com

Alfie Cheyne, CEO Ace Winches

Plain English works for me Worried you’re not getting your messages across to the public, asks Ken McEwen? Just keep it simple!

Unless we make a deliberate effort to escape, we are now almost constantly bombarded with information every minute of our waking hours.

Time was when the fastest way to get a message to someone was by the ‘penny post’ and the most up-to-date news we could receive was delivered in the morning newspaper.

Now, even when we are on the move, we can continue to broadcast and receive global information on our mobiles.

The number of information channels targeting us continues to grow. Six years ago, few of us had heard of Twitter. Now, even if we don’t use them, we hear of Twitter and other social media constantly.

In an environment like this – cluttered with more messages and information than one brain can possibly assimilate – effective communication becomes ever more critical to business success.

Who would want to make communication more difficult? But, strangely, that’s exactly what so many people and organisations do.

I met with a potential client recently. They told me that they undertook “ecological assessments” and implemented “solutions-focused individualised programmes” aimed at “positive outcomes”.

Now, I have no doubt that these buzzwords would resonate with many of the professionals that they work with. But, outside that circle of specialists, you can just envisage the eyes glazing over…

The crazy thing about this desire to create buzzwords and jargon to make our language impenetrable is that it is so unnecessary. The simplest way to speak and write is usually the best and the most effective.

When I worked in newspapers, people told me that The Sun had some of the crispest, most easily understood language of any newspaper. Inevitably some sneered when we were told the newspaper used English that was aimed at a reading age of seven.

Some will argue that you need jargon and buzz-words to explain technical points to an audience accustomed to the language. I would agree, up to a point.

Having set up my previous and current PR businesses in Aberdeen, I have worked on some pretty technical oil industry projects over the past 30 years.

Each time I have sat down to write an oil industry press release or article, for example, I have set out with the expectation of producing two versions. The first version, without jargon, would be aimed at business desks and news media. The second version would have the jargon added in for oil industry publications.

Almost every time, when I completed the first version, I realised it was good for both audiences! No matter how I looked at the stories, I could see no reason to add in jargon.

Embellishing your prose by adding jargon and buzzwords may make you feel that your communication is more substantial. The reality is that – in a world where everyone is clamouring for our attention – you are much more likely to get your point across if you keep your message simple and straightforward.

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

See www.kenmcewen.com for more details

IoD Scotland Summer 2013 | 19

Events Diary

Referendum on the menu at autumn Influencer Dinners IoD Scotland’s popular Influencer Dinners series has added two extra dates for autumn, at which we will be joined by two leading politicians at the very heart of the Government.

Deputy First Minister Nicola Sturgeon and Fergus Ewing, Minister for Energy, Enterprise and Tourism, will offer their views on the issues of the day, and with the independence referendum just 12 months away when the meetings take place, there’ll be a huge amount

to discuss as the debate intensifies over this hugely important but contentious issue.

Both meetings are strictly IoD members only. All guests will be seated around one table in a private room. The Minister will give a short speech on issues relevant to the business community then take questions and join the general discussion – whether it’s politics, business, economic or social affairs – all under Chatham House Rules.

Fergus Ewing, Minister for Energy, Enterprise and Tourism Location: Date: Time: Cost:

The Scotsman Hotel (Edinburgh) 10 September 18:30 - 21:30 £58.33 (+ VAT)

Fergus Ewing has been Minister for Energy, Enterprise and Tourism since 2011. He was born in Glasgow in 1957 and educated at Loretto School and Glasgow University where he graduated with an LLB. After qualifying as a solicitor he ran his own legal practice and small business for 17 years. He was a member of the Federation of Small Business and the SCDI, and developed policy of the Scottish National Party on business legal and taxation matters, as well as serving on its National Executive Committee and as a Vice Convenor.

A former member of the Lomond Mountain Rescue Team, in the 1980s he tackled around two-thirds of Scotland’s Munros, then in the nineties brought up the rear in some marathons. He enjoys thumping out some jazz numbers on the piano and spending time with his family.

Nicola Sturgeon Scotland’s Deputy First Minister Venue: Date: Time: Cost:

Hotel Missoni, Edinburgh) 20 November 18:30 - 21:30 £58.33 (+ VAT)

This is your opportunity to engage with Nicola Sturgeon MSP on relevant business and constitutional matters.

The MSP for Glasgow Southside constituency, Ms Sturgeon is Deputy First Minister (Government strategy and the Constitution) and Cabinet Secretary for Infrastructure, Investment and Cities.

Born in Irvine in 1970, she joined the SNP at the age of 16 and has been campaigning for Scottish independence ever since. Before she became an MSP, Ms Sturgeon worked as a solicitor at Drumchapel Law Centre, helping people with legal problems. First elected as an MSP representing the city of Glasgow in 1999, she has been re-elected three times in Glasgow. Previously she was Cabinet Secretary for Health & Wellbeing.

To reserve your places go to www.iod.com/connecting/ events/ or call 0131 557 5488 20 | IoD Scotland Summer 2013

IoD Events reports IoD Glasgow and West of Scotland

IoD’s ‘influencers’ agree on the perfect recipe for a successful event Pictured at the Influencers’ Dinners are (far left) Maurice Taylor, Laura Gordon and Denis McCann, of Hotel Indigo, and (left) Laura with Rupert Soames

by Laura Gordon Chair, IoD Glasgow and West of Scotland It’s clear that we in the West of Scotland enjoy a good meal, good company and listening to outstanding raconteurs. We have been privileged in the recent months to host Influencer Dinners with two outstanding business leaders – Maurice Taylor of Chardon Management and Rupert Soames of Aggreko – and both were unique in their attitude and approach.

A consummate storyteller, Maurice regaled us with anecdotes from his business and personal life, his irreverent sense of humour ensuring the 35-strong audience were in no doubt as to the man behind the business

success. Guests enjoyed wonderful hospitality from Hotel Indigo, with a Champagne and whisky tastings from Moet Hennessy. It was a winning recipe on all counts.

We were also incredibly fortunate to be able to secure high-profile FTSE 100 CEO Rupert Soames from Aggreko at a members-only dinner hosted and sponsored by Barclays.

Rather than a detailed tale of his success at Aggreko – Rupert has increased share value by 1,257 per cent over the past decade – he spoke at length about the potential for an energy crisis in the UK in coming years and the lack of overlap in the UK of energy policy, engineering and economics.

He warned that if current Government policy remains focused on renewables, in particular wind energy which fails to match supply and

demand, and delays continue in building and re-commissioning power stations, Scotland will become a net importer of energy, reliant on other countries as suppliers.

Soames’ eloquence along with his jocular self-deprecating manner and his interest in garnering guests’ thoughts and ideas on the subject made for a lively interactive discussion enjoyed by all. Coupled with the fine food and wine and generous hosting by Barclays, it made for another excellent event enjoyed by all.

For details of more IoD Glasgow and West of Scotland events please see www.iodscotland.com/glasgow Please also follow us on Twitter at @IoDGlasgow and follow our blog on http://iodglasgow.blogspot.co.uk/2013/04

IoD Scotland Summer 2013 | 21

Director development

by Mervyn Jones and Michael Willis

W

hy should directors be concerned about their individual behaviour within the boardroom and its impact on the group dynamics of boardroom decisionmaking?

Well, the Institute of Chartered Secretaries and Administrators (ISCA) pointedly stated that ‘The absence of guidance on appropriate boardroom behaviours represents a structural weakness in the current system’ - their conclusion is not too different from similar reviews carried out in response to the financial crisis of 2008.

A new IoD course, to be launched in October 2013, seeks to explore boardroom behaviours and give delegates an understanding of how to enhance the value of their contribution to the effectiveness of the board.

Mervyn Jones, an experienced non-executive director and a designer of the new course, observes that “one may wish to challenge the vehemence of the assertion from ICSA, particularly in the light of the personal attributes laid out in the IoD’s own Standards for the Board (2001).

“We may also point to the bookshelves of works on the characterisation of successful teams to indicate the greater understanding of how behaviours can deliver exemplary performance. However, maybe we should be a little more reflective and question whether we truly understand the nature of behaviours and attributes that are required to deliver an effective board, given the key responsibilities described in the various Codes of Governance relating to various companies and organisations.”

Mervyn believes there is more to it than just listing 35 behaviours, as the Standards for the Board does, or just transposing management team behaviour patterns to the board.

Michael Willis has tutored on the IOD’s Role of the Non-Executive Director programme for the last 10 years and has used this experience to help design this innovative course. “Without doubt it is those individuals who have board experience and who work on building effective relationships which challenge and motivate the executive who do well in this role.“ The course tutors have considered some of the guidance and comment on board governance of the past five years in the light of some of the leading thinking from the world of psychology research.

For example, one of the key tenets of a board’s role is that each member is responsible for the overall welfare of the company or organisation rather than that of a specific vested interest, even if this vested interest (say a shareholding group or as a staff representative) has elected the individual to the board. If we look at the work of Lowell Gaertner 10-15 years

22 | IoD Scotland Summer 2013

Effective Boards: greater than the sum of their parts ago, it describes how people distinguish themselves as individuals from their role in a group, and similarly, how cliques will distinguish themselves from the rest of the group. If we translate this to the board, it highlights the difficulty of getting people to leave their affiliation at the door or of seeing an issue from the perspective of other stakeholders.

Mervyn Jones goes on to say, “We can see elsewhere in published research how there is a tendency for an individual to focus on their own profile above that of the group.

“How often, within a specific debate at the Board, have we seen an individual (or ourselves!) emphasising our authority on a subject with a piece of ‘grandstanding’ possibly at the exclusion of other board members? Or maybe, at the other extreme, when not identifying with or feeling engaged in an issue, we switch off and contribute little – in psychology they refer to this as ‘loafing’. In either case there is a strong risk that a board’s

productivity is likely to be less than the sum of its parts.”

So what is the mechanism whereby the board’s effort can be delivered at a level that is greater than the sum of its parts? As Michael Willis points out, “apart from a greater awareness of the individual members of the part that they are playing, the role of the chair to facilitate the full engagement of the members to the benefit of the company or organisation must be critical.”

The tutors also highlight the submission to the Walker Review from the Association of Certified Chartered Accountants; they observe how financial risk-taking was better managed where non-executive directors have a high level of engagement in the company and where there is a high level of cognitive conflict.

But work by psychologists on issues of bias and attribution show the extent to which, particularly when surrounded by people of a similar mind, there is a tendency for groups to create a stable and exaggerated perception of

n

what is right – hardly an environment of cognitive conflict if this is taken to the board level, although a strong case for diverse board membership.

The one-day IoD course considers, with delegates, whether there is a typology of board members which may guide a chair or shareholders in constructing a board, in a similar fashion to the management team models that are widely used. Many boards, particularly in the public sector, will look for specific disciplines or professional experiences in making up an ‘ideal’ board. This is similar to the specialist or expert that many models utilise, but does it address the question of whether the behaviours and personal attributes of board members are being delivered? “In answering this question”, states Mervyn, “rather than looking for the engagers or visionaries or detail-lovers of many management models, we should look at the nature of the approach that board members are expected to take. Across a board agenda, and within any one issue, the approach will vary from providing direction to providing assurance, being interrogative and then being supportive, providing insight from elsewhere to asking the ‘silly laddie question’.

The variability of these characteristics probably demands of Board members a highly flexible behaviour pattern, something that exploits all of the five axes of personality trait developed from the thinking of Hans Eysenck.

“Although as individuals we will tend to emphasise or have a dominant trait, the implication of the demands made of board members is that we need to be able exercise all of them to a degree and also to understand when to use each of them. Only by doing so are board members in a position to fully meet their governance duty.”

The issues raised here are explored in more detail in the new IoD course ‘Winning Behaviours for Directors’, the first of which is scheduled for 3 October at the Royal Scots Club, Edinburgh. The course will be of particular interest to chairman and will be of relevance to those directors who have completed the IoD’s Role of the Non-Executive Director and wish to continue with their director development. Please contact Avril Gall on director.scotland@iod.com for more details or see the panel right.

“This one-day course explores the rules of engagement in the boardroom; what to say, how to say it, when to say it and why this is important for effective boardroom governance...”

New IoD course delivers better board behaviour Course: Winning Board Behaviour Date: Thursday, 3 October Venue: Royal Scots Club,

29 Abercromby Place, Edinburgh Cost: From £225 + VAT This one-day course explores the rules of engagement in the boardroom; what to say, how to say it, when to say it and why this is important for effective boardroom governance.

The theory of governance provides little help in shaping individual and group behaviours but without a clear understanding of the rules of engagement boards can become little more than talking shops.

Through the use of real-life cases and examples this course seeks to help directors and chairs understand the dynamics of the boardroom and how the winning behaviours of directors can add value to the board. At a time when the ‘culture’ of organisations is critical to reputation and long-term success this course throws light on how to shape a winning culture from the top.

Who should attend?

Individuals who are currently directors and those about to be appointed within the private, public and third sectors. This course is for those serious about their professional development. The course will have special relevance to chairs of boards and their sub committees.

Course content • Is the board a team, a collection of equals or a cohort of individuals?

• Are there rules of board debate and do they improve board decisionmaking?

• Is there a helpful typology of director personalities?

• What is the nature of relationship between NXDs and executive directors?

• What is the nature of the relationship between the chair and the rest of the board?

• How does the chair respond to and influence board members’ behaviour?

• How does board evaluation examine and improve behaviour?

• Is there an ideal mix of winning behaviours and how do you avoid toxic behaviour?

• How do I know if I am displaying winning behaviours?

Course benefits Help improve your current performance as a director or help you prepare for your first appointment. Develop a better understanding of your own behaviours and how these should be moderated or re-balanced.

All delegates will get an opportunity to work on a case which illustrates how behaviours influence the performance of the board.

Costs • IoD Members booking before 31st July 2013 - £225 plus VAT • All other bookings - £299 plus VAT Funding available • Companies with fewer than 150 employees may be eligible for a 50% grant via Skills Development Scotland’s Flexible Training Opportunities programme. Individuals may be eligible for Individual Learning Account funding. See www.skillsdevelopmentscotland.co.uk/our-services/ services-for-employers/training/flexible-training-opportunities.aspx

IoD Scotland Summer 2013 | 23

Financial matters... with Barnett Waddingham

Acting early will help release pressure on pension pots Employers sponsoring a defined benefit pension scheme that is carrying out its triennial valuation this year are likely to see upward pressure on the contributions being requested by the trustees, says Mike Kennedy, a partner at Barnett Waddingham. That’s why it is essential that employers take the initiative and get involved in the valuation process at an early stage.

M

any defined benefit pension schemes will have actuarial valuations due in 2013 and, of these, a large number will have an effective date of 31 March or early April. This article looks at what employers of those schemes can expect, as well as steps to manage the process, particularly in light of the recent Annual Funding Statement issued by the Pensions Regulator (TPR).

On the whole investment markets have done well since the last round of valuations three years ago – indeed, the FTSE All Share total return index increased by almost 30 per cent over the period from 31 March 2010 to 31 March 2013. However, quantitative easing and other factors have pushed Government bond yields to a modern era low.

The fall in yields on Government bonds used by many schemes to value the benefits have led to a higher value being placed on these liabilities. For most schemes the combined effect of market changes is likely to lead to larger deficits on the scheme funding basis.

This is despite the apparent recovery in asset values and the payment of additional contributions from the sponsoring employer.

Economic conditions continue to be difficult for employers, with the UK growth prospects still subdued. In the Pensions Bill 2013 TPR was given a new statutory objective to consider whether recovery plans agreed as part of the valuation process “minimise any adverse impact on the sustainable growth of an employer”. In recognition of this objective TPR used its 2013 Annual Funding Statement to highlight the possibility of balancing any potential increase in deficit contributions against the need for investment in the business, where this is improving employer covenant strength.

The Annual Funding Statement also highlights “flexibilities” within the current funding framework. On the face of it, this appears to be more employer-friendly, however in order to take full advantage of those flexibilities employers will need to work with trustees to provide the details they require to assess the employer covenant.

24 | IoD Scotland Summer 2013

Start early Even when the valuation date is several months away, there is plenty that can be done in preparation so that employers and trustees are aware of the likely issues in advance and can avoid delays or surprises. This can range from getting an early understanding of the likely results from your actuary, or considering the likely changes that the trustees will want to make to the actuarial assumptions used last time.

Identify your objectives For most schemes, the process of setting the valuation assumptions and contributions requires the agreement of the trustees and the employer. Before entering into discussions with the trustees, employers should be clear about what they are trying to achieve.

The trustees will focus on what the employer can reasonably afford to pay. TPR states that as a starting point, trustees should be seeking to at least maintain the current level of contributions from the employer. If the current level of contributions is no longer affordable, or there are other demands on cashflow, employers will need to provide sound arguments in order to justify lower contributions to the trustees.

The earlier this is done in the process, the better.

“Quantitative easing (by the Bank of England) and other factors have pushed Government bond yields to a modern era low. The fall in yields on bonds used by many schemes to value the benefits have led to a higher value being placed on these liabilities...”

Second opinions There is a wide range of actuarial assumptions that can be used for items such as future investment return, inflation, life expectancy, etc, and these can produce very different contribution requirements. It is becoming increasingly common for employers to seek their own actuarial advice on the assumptions and recovery plans proposed by trustees, even if it is just to give a “sense check” that the proposals look reasonable and in line with market practice.

Contingent assets One of the tools potentially available to employers in funding negotiations is the provision of a contingent asset (for example, a group/parent company guarantee or a charge over a property owned by the employer). This is an asset that is available to the trustees in certain circumstances – such as employer insolvency.

The trustees may be willing to accept additional investment risk, weaker assumptions and/or longer recovery periods (all of which can result in lower cash contributions) if they know that they will have recourse to extra funding if things go wrong.

Conclusion Employers are likely to be experiencing difficult trading conditions and additional demands on cashflow from pension schemes are unlikely to be welcome.

However, as mentioned above, there are many ways in which employers can take the initiative and help manage their exposure to pension liabilities.

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

How to contact us

• Employee Benefits

• Investment Consulting

Barnett Waddingham LLP 163 West George Street Glasgow G2 2JJ

• Longevity Consulting

0141 243 4400

• Insurance Consulting

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

@

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

• Public Sector Consulting • Trustee Consulting

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

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

Education

New qualifications will continue to develop learners’ skills

A

ugust 2013 will be a significant month for Scotland’s young people. For the final time, Standard Grade exam results will be issued to eagerly awaiting candidates across the country.

For many, August will mark the start of the new National Qualifications.

The new qualifications have been developed by the Scottish Qualifications Authority (SQA) to support Curriculum for Excellence (CfE), which introduced a new way of learning to schools and colleges in 2010.

CfE aims to equip all young people in Scotland with the skills, knowledge and understanding they need to succeed in life, learning and work in the 21st century.

The skills young people learn today will help them to succeed beyond the classroom.

SQA’s new qualifications will help young people to demonstrate the knowledge and skills they have acquired at school or college and enable them to prepare for employment,

further learning and training.

This table below details the new National Qualifications and the current qualifications they will replace.

National 1 to National 5 will be available from August 2013 and the new Higher will be available from August 2014. The new Advanced Higher will be introduced in 2015.

Some schools and local authorities may choose to implement the new qualifications at different times, so these timescales could vary

SCQF level Current National Qualifications

Replaced by

across the country.

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

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

New National Qualifications

1 and 2

Access 1 and Access 2

National 1 and National 2

3

Access 3 Standard Grade (Foundation Level)

National 3

4

Standard Grade (General Level) Intermediate 1

National 4

5

Standard Grade (Credit Level) Intermediate 2

National 5

6

Higher

Higher (new)

7

Advanced Higher

Advanced Higher (new)

26 | IoD Scotland Summer 2013

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

Highlands and Islands

IoD in the Highlands and Islands

by Paul Houlden Chair, IoD Highlands & Islands

W Skills development SQA supports the development of broad, generic skills through the Skills for Learning, Life and Work Framework.

This framework is being used in the development of the new qualifications to assist with the design of assessment, learning and teaching methods.

These broad, generic skills include attitudes / behaviours and dispositions that are essential for learners now and in the future.

Core Skills continue to be an important part of our qualifications system. These are the five certificated skills that have been identified by employers as the most likely to be needed in any working environment.

For employers who offer Modern Apprenticeships, some key new National Courses, Units and Awards will provide automatic certification of Core Skills.

This will help learners progress to further learning, in life and for work.

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

Where can I find more information?

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

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

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

e have now held two meetings of our branch and we have allocated duties to each committee member as far as we can with the limited numbers we currently have.

We have been joined by Jamie Waugh as our latest recruit, taking our elite band to six. Not a huge number, but we are all committed to making the branch work and to developing events that will include as many of our members as possible. However, we need more committee members so if you would like to join us to develop our branch please contact me on pbh@p2partners.co.uk to discuss.

Our branch has members from across the Highlands & Islands and it is impossible to hold meetings in every area. We have had in-depth discussions on how we could manage this, how we can reach all of you and how we can make everyone feel included. One idea was to issue a survey to ask a few basic questions on how much is known about the IoD in general and what members would like to see from the branch. Tanya Castell has taken on board the task of designing this survey which we will issue to all members in due course. We are also investigating ways to make greater use of social media.

Our most recent event was the IoD’s Economic Lecture, which was held on 14 June. The main speaker was IoD chief economist Graeme Leach and we were very fortunate to have such a knowledgeable speaker who can pitch his talks to the non-economists in the audience! This event was free and open to all; it took place at the UHI Exec Offices, Ness Walk, Inverness.

In addition, the branch is very active in holding Leadership Lectures and Influencer Dinners throughout the year. This is only possible with generous sponsorship from Highlands & Islands Enterprise and with support from the UHI. These dinners, chaired by myself and organised by Pauline Dingwall, are always well received and they attract top speakers from the world of business and politics, who give us their time freely to lecture on leadership then join us for dinner. We have arranged our events for 2013/2014 session up to and including March 2014. If you are in any of these areas and wish information on any of these events please contact pauline@p2partners.co.uk Although we are a small group we have big aspirations for the branch and we want to develop as much as possible to give you, as a member, the best value we can.

Your Highlands & Islands committee:

Paul Houlden (Chair) Pauline Dingwall (Branch Sec & Lectures) Tanya Castell (Events) Richard Dudley (DoY & Business Plan) Gareth Jones (Finance & Economy) Jamie Waugh (Finance & Economy) But we need more. Are you willing to give us a bit of your time to take the branch forward?

2013/2014 Events September 12 - Gordon Arthur, Inverness October 31 - Mike Russell, Ft William November 11 - Keith Brown, Thurso January 20 2014 - John Swinney, Inverness February 20 - Peter Housden, Elgin

IoD Scotland Spring 2013 | 27

Techs and Balances

Scotland’s IT expertise reaches out into the North Sea

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by Bill Magee Scottish Business Technology Writer of the Year

“Codify’s expertise aligns exactly with the Government‘s strategy to help the oil and gas industry secure the necessary human capital and skills, by supporting innovation and technology deployment...”

he Scottish Government has highlighted how technological innovation lies at the heart of an oil and gas strategy that targets higher long-term recovery rates and greater exports together with £30 billion in annual sales by 2020.

Equally key to success is strengthening the domestic supply chain and one such clever high-tech organisation that has come to my attention is Codify.

This Aberdeen-based custom software specialist has just reached a £1 million new contracts milestone for the 2012/2013 financial year with further deals in the pipeline. The company’s expertise in utilising the latest Microsoft technologies to build secure database software systems is increasingly in demand by companies needing rich and intuitive user interface solutions.

This has become especially relevant in these uncertain economic times, as organisations struggle to find off-the-shelf software that matches their exact needs and to streamline their business.

Early on in its commercial life Codify caught the eye of the oil and gas industry and its managing director, Graeme Humphrey, says 13 years on they’re proud to say that their software is used in companies of all sizes, from small local businesses to global corporations such as Talisman, TAQA and AGR – all seeking a variety of custom-built line-of-business applications.

Codify’s prime location and experience has allowed it to gain a high level of knowledge about the energy industry with a strength its ability to build software that meets the unique needs of each client.

Graeme explains that his company helps clients to envisage exactly what they require and then construct the solution accordingly, backed up by an effective and easily accessible support team.

Its significant contract wins are a testament to its ability to deliver software that is right for companies across the energy industry and beyond. One latest key ongoing contract is with Talisman Sinopec Energy UK. Codify has developed a central database application called the Opportunity Inventory System that enables Talisman Sinopec Energy UK operatives to view,

manage and analyse opportunities related to type, field, maturity and economic and production values.

The system includes Microsoft’s PivotViewer control which provides what Graeme describes as an “intuitive, interactive and visual tool” for further analysing opportunities. Traffic light colours are used to provide an “at a glance” patterns and trends. This enables the company to determine how opportunities are performing with respect to various criteria including production, reserves and incremental costs.

Another client is AGR Group, the global services and technology company specialising in oil and gas industry solutions. AGR invited Codify to take over the development of its software application P1, which is used to analyse and manage the risks and opportunities encountered during the construction of wells.

Codify completed a technical re-write, redeveloped the engine behind the software and added a number of new features including a Monte-Carlo engine that increased simulation speeds 100 fold. AGR PSS Director Chris Ferrier: “P1 has been used by over 30 oil and gas companies worldwide.

“The re-write has resulted in a more stable system which is fast, self-contained and can be used on different platforms. The software is solid, engineers like using it and it is becoming the standard tool in the workplace.

Codify has played a vital part in achieving that.”

Another client R2S (Return To Scene) comprises of three divisions working in the oil and gas industry, maritime and commercial sectors. Its software produces high-quality 360 degree spherical images to create a walk-through environment for the user to allow a quick assessment of an area or equipment.

Such was Codify’s impact in supporting R2S by stabilising its software that their collaboration enabled this particular client to make the all-important step into oil and gas. Managing director Brian Dillon said: “Meeting Codify was a breath of fresh air. You need luck in business and meeting Codify and their competent team was certainly a major stroke of luck as far as R2S is concerned.”

Codify’s expertise aligns exactly with the government’s strategy to help the oil and gas industry secure the necessary human capital and skills, by supporting innovation and technology deployment.

First Minister Alex Salmond describes the industry as one of Scotland’s greatest industrial success stories, transforming the economic well-being of the UK over the last 40 years.

Scottish Enterprise is in year-one of a three-year strategy to make up to £10 million available to support innovation in the sector, supporting more than 200 “account-managed” companies, 175 of them in Aberdeen and the North East, and increasing by a further 100 firms by 2014.

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

28 | IoD Scotland Summer 2013

News

ScotRail launches new CSR fund I oD partner ScotRail has launched a new fund to help communities across Scotland as part of its corporate social responsibility programme.

The ScotRail Foundation will distribute grants to groups working in a number of fields, from supporting children or young people, improving the environment or general health of communities. It is hoped that £100,000 will be released to help fund qualifying groups. Groups can apply for grants of between £250 and £5,000.

Steve Montgomery, managing director of ScotRail, commented: “The aim of the ScotRail Foundation is to support local communities that wish to create a positive impact in their local area, for example; by helping to address vandalism and littering; by promoting the use of public transport and sustainable travel; by encouraging awareness and respect in their neighbourhood; and by helping create a safer environment within the community.”

The fund is part of a wider CSR programme, Steve added. “We believe promoting the welfare of our local communities; developing and motivating our workforce; and helping to create a more sustainable environment is not only a chance to make a difference, it’s also our responsibility.

“We have a duty to ensure our customers, employees, wider communities – and the world we live in – deserve to be treated ethically and actively supported.

“As a result the fund will build on the great work that ScotRail staff already do to support good causes.

To recognise their sterling efforts, £15,000 of the £100,000 is being set aside to ‘match fund’ their fundraising on behalf of their own special causes.”

The fund will be managed on our behalf by Foundation Scotland, the independent charity, and three regional committees will consider applications twice a year. They committees will consist of ScotRail employees under our aim to bring more communities together and to involve staff more directly.

Want to know more?

See www.scotrail.co.uk/betterwaytobe for more information. Groups interested in applying to the fund should contact Foundation Scotland on 0141 341 4960 or visit www. foundationscotland.org.uk/

n Thanks to the many IoD members who took part in the recent IoD/ScotRail online survey.

A draw was held of all qualifying participants and the winning member was: Colin Millar, of SPAEN He wins 2 x Adult First Class Caledonian Sleeper return tickets to London, plus an overnight stay for two in a 4* hotel in a central location on a B&B basis.

The second prize, of a bottle of Champagne, was won by Paul Foley, of Kynesis.

Congratulations to both of you!

IoD Scotland and First ScotRail have agreed two exclusive membership offers. n

FREE upgrade to First Class 20% discount on Sleeper

n First Class accommodation

Valid from 1st February 2012-31st December 2013 Enjoy a FREE upgrade to first class travel on First ScotRail services. This offer is available to IoD members, and cannot be used by other people travelling with you (either family or work colleagues etc). The IoD membership card must be presented to the conductor on-train along with the valid ticket type for that journey.

It will be valid on 4 ‘walk up’ fares/ticket types: 1. Anytime Single 2. Anytime Return 3. Off Peak 4. Super Off Peak n It will be valid on ScotRail operated services only. n It will be valid only on ScotRail services where 1st Class accommodation is available. n The offer is valid until 31/12/13 - ScotRail reserves the right to withdraw with a month’s notice.

Exclusive IoD Scotland ScotRail Caledonian Sleeper offer There’s a 20 per cent discount available for IoD members using ScotRail‘s first-class sleeper service.

The tickets should be booked by telephone with the ScotRail Group Helpdesk.

Please call 0845 676 9901, supplying IoD membership number. Payment must be made with a credit/debit card and the tickets will be sent directly to the person booking. Please quote “IoD” when booking.

Terms and conditions: Travel must be made on dedicated First ScotRail Caledonian Sleeper services only. Valid on new bookings made until 31/12/13 inclusive only. Only valid on journeys above from 01/02/12 to 31/12/13. Cannot be utilised in conjunction with any other promotion or offers. First class postage is free – please allow 5 working days for your tickets to arrive. ‘Next Day’ delivery is £6.

Subject to availability.

IoD Scotland Summer 2013 | 29

Thoughts from the Henley-Aberdeen Partnership

Simple business advice to re-energise your organisation

T

hrough our unique partnership with Henley Business School, the University of Aberdeen is fortunate to have access to some of the UK’s leading business thinkers and professionals.

This gives us opportunities to ‘pick their brains’ regarding current business thinking and practices. We have put together what we feel are our top tips, gleaned from the 2012-13 programme of events.

What does your brand say about you?

David James provided great insight on how developing a strong branding proposition can benefit your business.

His top tip focused on the language used by companies to describe who they are. He specifically mentioned terms to avoid, such as motivated, authority, global provider, innovative, creative, curator, passionate, unique, guru – after all, what do these terms REALLY MEAN? David recommended replacing the broad statements with action statements – using plain English and stating what we really mean and what we are really going to do.

Why do some companies buzz with energy and life...while others suffer from stagnation and complacency?

Most leaders have experienced the ebb and flow of different states of energy in their own organisations. This energy belongs to the intangible, but very powerful, human potential that lies at the core of all companies. Professor Bernd Vogel calls this phenomenon organisational energy. The state of this energy can be measured in two ways; by its intensity and by its quality. These combine to produce the four states of

energy – corrosive, productive, comfortable and resigned inertia.

Bernd’s top tip is that all energy is malleable and in order to jump-start the company toward productive energy, leaders must help their organisations identify either a major threat/challenge or a promising opportunity and then involve their organisations in overcoming the challenge or taking advantage of the opportunity.

Do you want to make your Matrix organisation really work?

Janet Davis joined us in November to share her top tips for managing a matrix organisation. A matrix does not solve the problem of competing priorities – it just recognises it and reflects the issues in the structure.

The success of a matrix structure largely lies in the ability of its people to manage this new, more complex environment and this requires different skills and attitudes. Janet gave us three top tips for simplifying matrix management: limit matrix management to where it adds real value, involve the fewest levels and numbers of people in the matrix that will allow you to achieve your objectives and finally, choose the simplest form of matrix working that meets your needs.

Do human beings have an inbuilt capacity to persuade?

All day long, we’re trying to persuade other people: chivvying colleagues to take on more work, cajoling clients to be more flexible or convincing customers to give us more orders.

Amazingly, without any professional training in persuasion, we do pretty well. Whatever the situation we find ourselves in, we instinctively assemble a sophisticated array of persuasive tools – from flattery to fear-mongering – that

Use plain English – and state what we really mean and what we are really going to do.

David James

30 | IoD Scotland Summer 2013

Create productive energy within your organisation by identifying either a major threat, challenge or promising opportunity.

Professor Bernd Vogel successfully serve our interests.

However, in some situations, our persuasive skills do not come so naturally. We feel out of our comfort zone, we stumble and stutter and invariably it is during the presentations and pitches that matter the most that our persuasive skills seem to vanish. Simon Lancaster’s top tip is to always bear in mind the principals of communication – the audience is more important than the speaker; emotion is more powerful than logic and finally, less is more.

Want to know more?

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

The Melting Pot:

Stimulating and supporting social innovation in Scotland – and they’re on the hunt for new board members to help them achieve their goals Times and priorities change.

Businesses come and go. But the need to be innovative and forward thinking has never been greater, nor the challenges harder.

Nestled high up in the former Jenners’ carpentry workshop, above the everyday ground-level bustling pubs, restaurants and shops of Rose Street, you’ll find a diverse community of people quietly getting on with making the world a better place.

Welcome to The Melting Pot – Scotland’s Centre for Social Innovation.

A world-renowned social enterprise, The Melting Pot provides a range of dynamic resources for social change makers. When it opened in 2007, it was a pioneer in providing co-working facilities – long before the concept went viral.

The Melting Pot is choosy about who it works with, supporting around 150 organisations of all shapes and sizes to ‘work, meet, connect and learn’. It also supports over 5,000 events a year through a range of publically available meeting and events services. But it’s far more than just an eco-office and event space.

With the arrival of summer, most people are preparing for the inevitable slow down, but social change never stops! The buzz at ‘TMP’ is building.... Scotland leads the way in social enterprise: our booming exports are not just about sending whisky to China!

In late June John Swinney, Scottish Government Cabinet Secretary for Finance and Sustainable Growth, will welcome emerging and established organisations within Scotland’s Social Innovation sector when he opens a special event that TMP is co-hosting with Glasgow Caledonian

University, to disseminate the latest research: how regional funds can be accessed in order to transform Scotland’s socially innovative solutions into ones that can be scaled up and applied nationally and internationally.

Mr Swinney will also announce the winners of TMPs’ Social Innovation Incubator Awards. Nine start-up and emerging social innovators will receive a 12-month package of expert input, practical support and peerto-peer learning – helping them turn their ideas for a better world into reality.

Directors: Can you help us reach our goals?

The Melting Pot is preparing for the next stage of its own development – that delicate balance between growth, consolidation and expansion.

To assist this, it is seeking new board members to work in non-executive roles, and/or volunteers to work at strategic level. These roles would provide a valuable opportunity for people interested in supporting and shaping their work by people offering experience, expertise and energy.

If you would like further information, please visit www.TheMeltingPotEdinburgh.org.uk and/or get in touch with Claire Carpenter, Managing Director, on 0131 243 2629 or Claire@themeltingpotedinburgh.org.uk

It’s space Jim, but not as we know it! n Co-working Space and Community – flexible options from £10pcm

n Public Venue for Meetings and Events (2-100ppl) n Network of social innovators & entrepreneurs n City centre location - Edinburgh www.TheMeltingPotEdinburgh.org.uk

0131 243 2626

Affordable | Accessible | Attractive | Added Value IoD Scotland Summer 2013 | 31

New Qualifications.

New Opportunities.

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

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

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

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