Scotland
Winter 2015 www.iodscotland.com
Published for members of the Institute of Directors in Scotland
21st Century thinking for the future of healthcare Ready-made solution to an economic problem
Talking tough: why resilience is the key to leadership
IoD Awards: it’s your last chance to nominate
New chair Susan Deacon outlines vision for the IoD IoD Conference: full report, pictures Business leaders look beyond the horizon
WELCOME
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‘Scotland plc’ needs to listen more to its business leaders Leadership can be a lonely place – just one of the themes Nicola Sturgeon touched upon in her recent outing on Radio 4’s Desert Island Discs. It’s a phrase that has bells on it if you’re Scotland’s First Minister, but it will ring true for most leaders – whether starting a business, running a charity, managing a local authority or being in the Boardroom of a major global corporate. True, a strong and confident leader will be able and willing to acknowledge they don’t have all the answers, but they need also to instil confidence and to inspire those around them. When faced with challenges, tough decisions or self-doubt a leader can’t just shrug and say, ‘I don’t know’ or ‘I’m too tired’ or ‘It’s too difficult’. But leaders are human too. They need time and space to develop themselves, explore their uncertainties, ask questions, test ideas, learn from others and try to make sense of the world. Being in the company of their peers – whether in formal learning environments, focused business discussions or in informal social settings – has a real value and is key to ensuring they can
Leadership matters, says IoD Scotland’s new chair, Professor Susan Deacon, and it’s time our business leaders’ voices were heard perform better and achieve more. Leaders’ voices matter too. How often do we tune into public discourse about business, the economy, the future of our public services or on issues such as climate change, inequality, education, skills and productivity and find the discussion dominated by politicians and commentators? Don’t get me wrong: their views and insights matter, but what about the people who are doing things, running things and making things happen in real time? We need to hear more from those who lead, people who have to take hard decisions about what products or services to develop, who to employ and what markets to invest in – knowing that they will be held to account for their decisions by shareholders, investors, customers,
employees, regulators and possibly, especially if things go wrong, by politicians and the media to boot. Understanding the challenges they face, and tapping into their opinions and experience is vital if we are to understand how ‘Scotland plc’ works and take the steps necessary to make it fit for the future. Over the years I’ve had the privilege of working with a wide array of Scotland’s leaders. People who are making things happen – in business, large and small, in Government and public services, in research and education and in our charities and social enterprises – people who are taking risks, shouldering responsibility and more often than not going the extra mile to generate the wealth and employment opportunities upon which our country depends. Continued on page 5
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Leaders are human too. They need time and space to develop themselves, explore their uncertainties, ask questions, test ideas, learn from others and try to make sense of the world
Photo © Callum Moffat
Contacts & details
Executive Director: David Watt iod.scotland@iod.com For email enquiries, iod.scotland@iod.com Web: www.iodscotland.com or www.iod.com/scotland Address: 29 Abercromby Place, Edinburgh EH3 6QE Tel: 0131 557 5488 Email: iod.scotland@iod.com
IoD Scotland is the official membership magazine of the Institute of Directors and is published on its behalf by: Chamber Media Services, 4 Hilton Road, Bramhall, Stockport, Cheshire SK7 3AG Advertising sales: Colin Regan t: 01925 292002 / 07871 444922 e: colinregan001@yahoo.co.uk Production: Rob Beswick t: 0161 426 7957 / 07964 375216 e: rob@chambermediaservices.co.uk
Although every effort is made to ensure the accuracy of material contained within this magazine, neither IoD Scotland nor Chamber Media Services can accept any responsibility for omissions or inaccuracies in its editorial or advertising content. The views expressed in this publication are not necessarily those of the IoD. The carriage of advertisements or editorials in this publication does not constitute an endorsement of the products or services advertised. Cover picture: IoD Scotland’s new Chair, Professor Susan Deacon. See pg 8 Cover photograph courtesy of Callum Moffat Phtography t: @callumpix.com e: callumpix@yahoo.com
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COMMENT
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An economic problem, and a ready-made solution David Watt
Executive Director, IoD Scotland Perhaps recent reports that Scotland’s unemployment figures have grown should come as no surprise. The giddy heights of 2014 with the Commonwealth Games, the Ryder Cup and even the independence referendum had a marked impact on economic activity, and a statistical breather is only to be expected in the aftermath. That’s not excusing the numbers. There are many factors that contribute to the growth in unemployment. The slowdown in the North Sea oil and gas industry – not just in the north-east of Scotland but in the substantial supply chain which exists all across the country – has affected many businesses, both directly and indirectly. Add to that the ongoing reduction of public sector budgets. With one-in-four of the Scottish workforce being employed there it is easy to see why the trends are going the wrong way, especially if those people are not being replaced. We must look for new opportunities to grow the jobs market. It is our responsibility, and challenge, to identify new markets and develop relevant products and services, in particular for export – only then we will see a turnaround in the figures. On the bright side, I speak to business people daily and I don’t see a depth of gloom and despair. The positive far outweighs any pessimism. Even in the ‘first to get cut’ spaces of marketing and training, business leaders are upbeat and busy. Certainly this is high-end stuff and probably not where the problem lies. We need more opportunities brought nearer to those farthest from the workforce, and intensive skills training for those seeking a job in a fast-changing market. We need continued focus on infrastructure and connectivity, especially broadband – coupled with a commitment to fully use it – and a planning system which encourages growth, not prevents it. We certainly need a climate of wealth 04 | WINTER 2015
and job creation as opposed to dependency, where focus is on self-help and working together. The key to delivering this new climate, and a prosperous future? The next generation of directors. Scotland’s young directors are up for change, ready to embrace new ideas or reimagine established business theories, and at the same time are hungry to learn from their more experienced peers. The recently launched Young Directors Forum grasps the opportunity to create a platform that caters for the next generation of business leaders and taps into the wealth of experience within the IoD. We hope to determine, and where we can, meet the needs of Scotland’s aspiring
directors and entrepreneurs as they create a force for change and increased diversity within the ranks of the IoD, and the wider business sector. By helping young directors to grow and succeed they will become a formidable employer network, creating new and interesting jobs for the Scottish workforce and fuelling economic achievement across the country. There are many issues that affect employment levels, and the snapshot figures can turn on a coin. But to have faster growing, better run, and more successful Scottish companies, we need long-term vision and investment in people, and our strong network has a big part to play in delivering this.
David Watt presents outgoing IoD chairman Ian McKay with a gift at the Conference dinner in recognition of his term of office
NEWS
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Chair’s welcome: Why leadership matters Continued from page 3 We can be squeamish sometimes in talking about leadership – not least in Scotland – indeed, some of the best leaders I’ve ever come across are uncomfortable with the mantle. “I’m not a leader, I just help encourage and facilitate other people’s efforts” was one memorable phrase I heard from a social entrepreneur who had driven transformative change in her field. But the fact is that leadership matters. We can all have all the business plans, policies and strategies in the world, but without the people to lead and drive change they are as nought. If Scotland is to continue to grow and
flourish on a world stage we need to support the leaders of today and to grow the leaders of tomorrow. I’m immensely proud to be taking on the role of Chair of IoD Scotland – an organisation which is committed to doing just that. By continuing to grow and develop the organisation as a gathering place for leaders across Scotland we can play our part to do more to value, support and listen to Scotland’s leadership community in the future. I look forward to working with many of you on that journey – that way, none us need feel too lonely! Interview with Susan Deacon: pg 8
Global HQ opens its doors Kelvin Topset has just celebrated the opening of its new global HQ at the Annickbank Innovation Campus in Irvine. Brian Harris, former joint MD for ICI Nobel’s Explosives Company, at Ardeer, made the opening speech, praising the company for its “independent external expertise in risk mitigation and accident investigation. One of the success characteristics of Kelvin TOP-SET is their flexibility and adaptability to apply proven processes to a range of differing challenges around the globe.” More at www.kelvintopset.com and see page 7 for details of a new IoD Scotland membership benefit
Partnering with IoD Scotland There are many great opportunities for companies and organisations to work with the IoD in Scotland - through our branch events, our national awards and conference and our magazine. As a national organisation the IoD is
attractive to a wide variety of agencies wishing to raise their profile in this very special Scottish market, as well as accessing the IoD’s unique membership through our regional network of six branches. Get involved with the IoD and raise your
profile – and your brand. Contact Katherine McCudden, Head of Membership Support & Strategic Partnerships, IoD Scotland on 0131 557 5488 Mob: 07814 386 129 or via Katherine. McCudden@iod.com
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NEWS
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Glasgow and West of Scotland news
Branch aiming to play to IoD’s considerable strengths David Hoey
Chair, IoD Glasgow and West of Scotland The Glasgow and West of Scotland Regional IoD Committee recently met for our annual strategy session to compile our plan for the year ahead. One of the main issues that we considered was what membership of the IoD meant for us as members, but also what it means for potential new members and for the wider commercial world. It soon became clear that the IoD does not mean the same to everyone and people join for different reasons. This was something to which Susan Deacon referred to during her speech at the recent IoD conference and we need to ensure we play to our strengths. We want to grow our organisation and attract new members while ensuring we provide the best possible opportunities for our existing members by enhancing what we do. In addition to providing thought leadership in
relevant areas for our members, we want to provide excellent influencing and networking opportunities with the ability to lobby our politicians for our members’ benefit. Ensuring excellent personal development and training in areas required by our disparate membership base (from leadership to governance and beyond) is also important. We concluded that the IoD represents (and should continue to represent) the best in leadership, training, support and business services which facilitates our members’ planning and growth. Member benefits should also not be underestimated. Needless to say the recent confirmation of the ScotRail first class travel upgrade is welcome. The committee is working hard to build on the emerging themes and we will implement a strategy that serves all our members, with their respective interests and focuses, well. As ever, we welcome any contributions from members as we
recognise that there is no monopoly on good ideas! Please do not be backward in coming forwards as we welcome input from all our stakeholders. In November we had a session with the Group Editor of the Herald, Magnus Llewellin, which was held in the Herald’s building. Magnus presented a thoughtprovoking insight into a challenging industry and showed how innovation and leadership can lead to success. This was a very successful and insightful evening with great networking and discussion and demonstrated the benefits the IoD can bring. We look forward to implementing our strategy and ensuring that IoD Glasgow and West of Scotland continues to succeed and grow. The recent successful conference at Cameron House, which is, of course, based within our region, provided a great example of how the IoD can attract high calibre individuals, encourage thought provoking discussion while ensuring our sense of perspective and humour is not lost. We look forward to welcoming you at forthcoming IoD events.
IoD director’s team leaves golfing rivals all at sea IoD Scotland’s David and Maggie Watt are pictured with Michael Willis and Allan Hogarth holding their trophy as the winning team in this year’s Scottish Government’s Charity Golf Day in aid of the RNLI. The Stableford team competition was played on a glorious sunny day at Ratho Park Golf Club. The IoD Scotland team won the team competition with 95 Stableford points. Everyone taking part had a great day on and off the course, and most importantly, vital funds were raised for the tremendous work that the RNLI carries out to keep seafarers safe. We hope you can join us in supporting this event next year.
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AWARDS
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Nominate now for IoD Scotland Director of the Year Awards The IoD has issued a call for nominees for its annual Director of the Year Awards. The awards, to be presented on March 17 at the Crowne Plaza Glasgow, will see Scotland’s most successful leaders rewarded for their achievements in 2015. IoD Scotland’s newly-appointed Chair, Professor Susan Deacon, believes, “Successful organisations need effective leaders – it’s that simple.” So who deserves our recognition this year? You need to be quick to get your nominations in – we need them by Friday, 11 December. Nominations are open to all, whether or not you are an IoD member. So IoD Scotland wants to hear from individuals from all sectors: entrepreneurial start-ups, SMEs, large corporates, charities or the public sector. Why not consider nominating a colleague or client for one of the following Director Awards: n IoD Scotland Director of the Year n Emerging Director n Badenoch & Clark Female Director n Bank of Scotland Non-Executive Director Award n mclcreate Public Sector Director Award n SCVO Third Sector Director Award n Scottish Government Director Award for Family Friendly & Flexible Working n NHS Health Scotland & Carer Positive Director Award for a Healthy, Carer Friendly Workplace As well as the Director categories above, nominations are being sought for our Regional Awards: n Aberdeen & Grampian n Edinburgh, Lothians & the Borders n Fife & Central Scotland n Glasgow & West of Scotland n Highlands & Islands n Tayside
The judging process is rigorous, but the nomination procedure is streamlined. Complete a nomination form at www.iodscotland.com where you will also find awards information and a list of previous winners. If you have any queries please email awards@firstcityevents.co.uk, call 01577 865498, Joyce on 07711 432745 or Alice on 07749 384032. Tickets are also available for our Awards Ceremony and Gala Dinner at the Crowne Plaza Glasgow, which this year will be hosted by Reporting Scotland presenter, Jackie Bird.
If you wish to book a table/ seats for the awards gala dinner on March 17, 2016, complete the online booking form at www.iodscotland.com or email awards@firstcity events.co.uk.
Our awards compere, Jackie Bird
TV personality Kaye Adams, award winners Gordon Dewar and Ronnie Wayte and Fergus Ewing MSP at the IoD Scotland Director of the Year Awards earlier this year.
Awards supporters
Awards timeline
2015 11 December Deadline for entries 2016 11 January Phase 2 nominees announced 17 February Shortlist announced 17 March Awards ceremony
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PROFESSOR SUSAN DEACON
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The IoD: the gathering place for Scotland‘s leaders Professor Susan Deacon outlines her vision for the IoD as she begins her tenure as chair IoD Scotland’s new chair has an ambitious goal for the organisation: to make the IoD the gathering place for business leaders and directors across the country. It’s an ambition that Professor Susan Deacon thinks the IoD can deliver on. “The IoD is a very special organisation, one that I’m honoured to lead. It has a unique contribution to make to the public debate and to the development of strong leadership and effective corporate governance in Scotland. “Our membership pulls people in from across all business sectors, from different fields, and that level of collaboration is central to its success and what makes me believe the IoD can make a real difference to Scotland.” Susan steps into the chair after three years on the IoD Scotland committee, and the decision to accept the role was an easy one to make. “Having worked closely with David Watt, Ian McKay and the staff team while on the IoD Scotland committee I was fully aware of the influence the IoD can bring to bear. I’m now determined to widen our engagement even further, to develop our voice and contribution to Scotland‘s business and public life.” What has particularly attracted Professor Deacon to the IoD is the way it offers so many options for members to engage with both the Institute and their fellow directors. “IoD membership means different things to different people. Some directors join to access the membership benefits, others for the opportunities for personal development, while others want to engage with their peers or to influence Government and public debate. Or indeed, some combination of all of the above.”.. “In all these ways, IoD Scotland can
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make a real difference. It is particularly important that leaders can find a network of their peers where they can discuss the issues affecting their organisations and to learn and develop together.” Having worked across the private, public and third sectors – as well as frontline politics and in academia – Susan is constantly struck by how so many leaders think their challenges are unique to them, their sector or organisation. “The challenges facing you are rarely unique. They manifest themselves across business, albeit in different ways. “What the IoD can encourage is a cross-fertilisation of ideas that can develop our understanding of leadership, of how to grow our businesses.” The new chair is a strong advocate of the IoD‘s professional development programme but is quick to acknowledge that sometimes, “the best personal development can come from informal conversations and relationships between directors.” Scotland offers a unique platform for those conversations in a way that is possibly unrivalled in the UK – what Susan likes to think of as the “eco system of Scotland plc”. “Scotland is a small country,
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and there are rarely more than a couple of degrees of separation between business leaders. That creates a superb environment in which conversations can develop and where, if we’re so minded, we can get to the root of problems – and produce solutions.” That lies at the heart of her goal for the IoD – to become the ‘gathering place’ for leaders, where they can engage in open, honest debate in ways that develop both themselves and the organisations and businesses they lead. It isn’t a given that the IoD can achieve this, however, which is something Susan readily acknowledges. “There is an enormous opportunity here for the IoD in Scotland. We have been consistently growing both our membership and our services, but we need to do more to strengthen, deepen and develop our contribution on key Scottish issues.” The IoD maintains strong links with the Scottish Government – something that as a former MSP and Minister Susan encourages – but she is concerned about the ‘over dependence’ on Government that has developed post-devolution’. “I would argue that too often in Scotland our debates are centred around what
We need a more balanced debate about how wealth is generated, how jobs are created and how the public/private/third sectors work together to grow the economy
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All too often the political and public debate on the economy, on infrastructure, on services and skills, is dominated by politicians and political commentators. Where are the voices of the people leading things at the grassroots? Where are the views from the front-line?
Government can do to solve our problems. I think we seek this option too often. “We need a more balanced debate on how wealth is generated, how jobs are created and how the public, private and third sectors can work together to grow the economy and to build a better and more cohesive society. “We need to shift the focus from one where we look to the Government to provide all the answers.” It’s clear that the IoD cannot shift the debate on this by itself but it can make an important contribution and has a vital role to play. “I’m a passionate advocate of collaborative leadership and I’m keen that IoD Scotland works more closely with others who share our aims. Scotland is a
small country and I feel strongly that too many organisations throw ‘pebbles in the pond’. There are all sorts of forums, meetings, publications and events, but how much impact do they really have? “If we can join the dots between some of this work we could make waves rather than ripples.” By working with other organisations the spotlight may shine less on the IoD‘s own contribution but this doesn’t worry her: getting the job done does. “Former US President Harry S Truman said ‘It’s amazing what you can accomplish if you do not care who gets the credit.’ ” It‘s clearly a maxim that still hits the mark, celebrating collaborative success rather than personal glorification.
Certainly more needs to be done to improve the way all parties work together to improve the business outlook, and Susan has concerns over the way the economy is performing at present. “Scotland is still a great place to work and do business but that isn’t a situation we can take for granted. “Recent economic performance indicators for the UK as a whole looked good, with more jobs created and growth. But if you look at the statistics for Scotland the picture isn’t as rosy. They showed unemployment edging up, growth down.
Continued on page 10 » » »
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PROFESSOR SUSAN DEACON
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Susan Deacon with IoD executive director David Watt and ScotRail Alliance managing director Phil Verster at the IoD Scotland Conference, Susan‘s first event as chair
Continued from page 9 “While some of the reasons for this are linked to low oil prices and the impact this has in the oil and gas sector, that’s not the only reason. “We still struggle in terms of productivity and we have significant skills gaps. These are UK-wide issues but they manifest themselves in Scotland in particular ways.” The frustration is that these problems have been identified for many years and in many ways, analysed to death: now is the time for action, she says. “I’m struck that post-devolution Scotland has become ever better at analysing problems and holding joined-up conversations that shine a light on the challenges but we get stuck in the groove of analysis rather than action. We’re not taking forward the actions necessary to fix the problems. “Diagnosing problems is one thing; providing solutions is the hard part.” To Susan this is another example of the
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‘Government first’ attitude towards providing solutions. “For too long we’ve looked to Government to address things like skills gaps but I don’t think it is an issue that top down Government strategy can fix. “We need schools, colleges and universities to work hand-in-glove with employers to develop the skills we need for the future. “Instead of Government seeing its role as being a creator of the solutions, they
should get behind the people on the ground who can take action directly. “We have too many ‘top-down’ initiatives that pay insufficient attention to the views of the people and businesses at the sharp end.” “It is understandable that the Scottish Government and Parliament sees its job as setting standards and priorities across Scotland; to create shared ambitions and goals. I think there is broad agreement that what we want to create is an enterprising
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There is an irony in that, while Scotland talks the language of ‘localism, creativity and innovation’, we don’t allow those ideas to gain traction with local people... We need to encourage flowers that bloom locally...
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About the new chair... Professor Susan Deacon
Susan is Assistant Principal External Relations and a Professorial Fellow at the University of Edinburgh, a position she has held since 2012, and was previously Professor of Social Change at Queen Margaret University. Her non-executive roles include Scottish Power Ltd, Lothian Buses Ltd and the Institute of Occupational Medicine. A regular contributor to policy and leadership forums across the UK, Susan’s passion and interest lies in bringing people and ideas together to achieve practical and sustainable change. Her career has included leadership roles in education, business and politics, as well as extensive study and practical experience of public policy development and implementation.
We still struggle in terms of productivity and we have significant skills gaps... and compassionate Scotland. We need to do more to unleash the energy and capability of those working at the coal face to drive progress and change.” There is an irony that, while Scotland talks the language of ‘localism, creativity and innovation’, “we still default to central policy and prescription.” Creating the environment in which such a culture can flourish lies at the heart of Professor Deacon’s vision for the IoD, which takes us neatly back to her goals for the Institute. “We have to work hard to maintain the IoD’s relevance in the modern world. It has to stay as a forward-looking organisation that encourages a diversity of thinking and leadership talent across Scotland. “I want us to be the pre-eminent gathering place for leaders. Through our events, our networks, our personal development courses, we
have to be focused on this goal.” It’s important that the IoD utilises its strength and deep roots across Scotland’s business community to meet the needs of the current business environment as well as meet those of the future, Susan adds. “It’s important we recognise our strengths but don’t stand still; we must keep on growing and challenging ourselves. Just because something has worked well in the past doesn’t mean it is the solution for the future. “That said, we must be careful not to discard those things that have served the IoD and Scotland well: our emphasis on strong leadership and effective corporate governance is key. “We’re not in this to throw the baby out with the bath water!”
IoD Scotland Conference report: See page 14
A graduate of the University of Edinburgh, in Social Policy and Politics (1987) and later an MBA (1992), her early career was in local government management and research before moving into management consultancy in the private sector and then executive education as MBA Director of Programmes with Edinburgh Business School, HeriotWatt University. In 1999, Susan was elected to the newly established Scottish Parliament as MSP for Edinburgh East and Musselburgh and was appointed as Scotland’s first Cabinet Minister for Health and Community Care. She stood down from the Scottish Parliament in 2007 and has since developed a diverse portfolio of roles and projects, working widely across the private, public and third sectors and at the interface between academia, business and policy makers.
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Susan’s passion and interest lies in bringing people and ideas together to achieve practical and sustainable change.
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Membership benefits Free upgrade to First Class on ScotRail services We are delighted that ScotRail is continuing its fantastic offer to IoD Scotland members, of a FREE upgrade to First Class. Just present your IoD membership card to the conductor on-train along with a valid ticket type for that journey and receive a free upgrade to First Class*. The offer is valid on Anytime Single, Anytime Return and Off Peak where First Class accommodation is available+. Members whose businesses use train travel regularly could also sign up to ScotRail’s Business Direct service, a solution designed to help support you
by managing your business travel programmes, saving you time and money. So let’s move your business travel off road and on to rail – and do it in style with our special offer, courtesy of ScotRail. *Subject to availability
For more information See www.scotrail.co.uk/ businessdirect or call 0141 335 4015 to find out more.
+ Please note Exclusions: 07.00hrs – 08.00hrs inclusive, Monday – Friday between Edinburgh and Glasgow (both directions including all stations on route) 17.00hrs – 18.00hrs inclusive Monday – Friday between Edinburgh and Glasgow(both directions including all stations on route) 07.41hrs, 16.41hrs and 17.41 Glasgow to Aberdeen This benefit is not available on Caledonian Sleeper services
Why join the IoD? Special offers IoD members can take advantage of a superb special offer, courtesy of Regus. The benefit entitles members to: • Free access to 3,000 locations worldwide • A 15 per cent discount of all Regus private meeting room bookings • Complimentary refreshments and WiFi • On hand administrative support • Two complimentary business lounge Guest passes To take advantage of this offer talk to Regus today to activate your membership: Call 0870 880 8484.
Save up to 35% on leading liability insurance, providing protection and peace of mind for directors
Save 10% on global car rental and get free membership of Hertz Gold Plus Rewards Five Star – a VIP service normally reserved for frequent renters
Save 12.5% on 5-star rated home and contents insurance for the life of your policy (subject to a minimum premium)
Exclusive personal and corporate health plans from 18p per day
Register for free to benefit from exclusive offers and savings on a full range of leisure and business travel including holidays, flights, cruises and tours
Your benefits in Scotland IoD Scotland has negotiated special discounts and rates for members at hotels in Glasgow, Edinburgh, Aberdeen and Inverness Glasgow and Edinburgh Get 20 per cent off until the end of December 2015, with 15 per cent discount from 1st January 2016. Discounts are on accommodation (best available rate), food and
beverages as well as meetings and event bookings at: n The Grand Central Hotel, Glasgow n Blythswood Square, Glasgow n The Roxburghe, Edinburgh n The George, Edinburgh n The Bonham, Edinburgh PLUS Special discounts at the Royal Scots Club, Edinburgh and 220 svs Glasgow IoD hubs.
Aberdeen Preferential accommodation rate at Aberdeen Hilton Garden Inn. Inverness Preferential accommodation rate Kingsmills Inverness and IoD guests will receive a VIP package, including a late checkout and room refreshments
Make working Smart a priority Exclusive 10% off for IoD members in Scotland for working Sm@rt Priority Management has spent 30 years researching best practices in the workplace and has trained 2.5 million people in the last 10 years. Most organisations have restructured the structures, restructured the work, restructured the processes but not restructured how people work. We teach ‘A Better Way to Work’. This programme is the result of a five-year study led by Dr Peter Honey into best practice behaviours and the impact IT has had on the workplace. This research identified that really effective people in today’s ever-changing workplace have highly developed self disciplined habits in the way they approach, respond to and handle work. This programme
takes time, people and business management a step further, teaching habit changing processes with the use of practical tools for implementation. This programme is aimed at business leaders / senior and junior managers and busy individuals who need to set standards of best management practice within their organisations. To take advantage of this offer call: 0141404 3787 or email gillym@ prioritymanagement and quote your membership number
Get to problem’s root causes Kelvin TOP-SET, the incident investigation experts, offer new benefit to members Kelvin TOP-SET, a leading authority in the field of incident investigation, problem solving and performance improvement, is offering a free trial of its e-RCA online Root Cause Analysis course to fellow members of IoD. Root Cause Analysis (RCA) is probably one of the most misunderstood terms in global industry. With over 30 years of practical experience teaching and conducting incident investigation and root cause analysis, Kelvin TOP-SET realises that, for many people, getting to the real ‘root causes’ of incidents poses a serious challenge.
With this in mind, Kelvin TOP-SET created its online e-RCA course. The course can be completed online in approximately four hours and requires no prior knowledge of RCA. It is suitable for anyone who may be involved in incident investigation and for those who simply wish to gain a better grasp of the fundamentals of good root cause analysis. To access your free trial, go to www. kelvintopset.com/elearning/register and register using the trial code OpenDay
Business research IoD offers members first-class business research and expert advice – providing support to grow your business successfully. We understand the challenges you face in running a business and can provide research, business advice and specialist legal and tax advice to support you and save you time and money. How much can I use this service? You can use this service up to four times per calendar year and advisory sessions last between 30 and 45 minutes. Advice is given on an appointment basis, either in person at our offices on Pall Mall, London, or over the telephone, depending on the advisors’ availability. The service is open between 9am and 5pm, Monday to Friday, excluding Bank Holidays. To book an appointment: Call 020 7451 3188 Email: businessinfo@iod.com See www.iod.com/advisory
Tax relief on IoD fees
Did you know that you can claim tax relief on your IoD membership subscription? The IoD has been approved by HM Revenue and Customs (HMRC) for members to claim tax relief for their annual membership subscription fees. Do I qualify? Save up to £240 per annum by claiming Tax Relief on IoD membership. You can claim tax relief on your annual membership subscription fees if: – IoD membership is essential to do your job or it’s helpful for your work – You pay your IoD membership fees yourself (i.e. not paid by your employer) If you qualify through the above statements then you could be saving up to £240 per annum on your membership fees
CONFERENCE REPORT
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Conference 2015: IoD looks ‘beyond the horizon’ IoD Scotland‘s flagship event is its annual Conference, this year held at Cameron House, Loch Lomond. Over the next few pages we offer you a snapshot of the event, with reports on the major presentations that took place IoD Scotland Conference Leadership Lecture:
Leslie Evans,
Permanent Secretary to the Scottish Government The pace of change impacting on Scotland over the next decade will dictate that the future will be dominated by authentic, agile leaders who are prepared to “learn, unlearn and relearn”, Leslie Evans, Permanent Secretary to the Scottish Government, told the IoD Scotland Conference. Her Leadership Lecture on the conference‘s opening evening highlighted the many challenges she had faced during her own career – ranging from tackling the hierarchical structures that sometimes dominated the Civil Service to more personal issues, such as handling members of the public who felt the authorities had let them down personally. This experience had taught her that it is vital leaders understand the way their decisions impact on peoples’ lives, and that our humanity and ability to interact with others have to be the cornerstones of our leadership. Personal resilience was vital: understanding the organisation’s objectives, communicating them to all stakeholders and driving through change required tenacity and agility, particularly when dealing with areas where your own knowledge base was weaker. Understanding how decisions impacted on the workforce outside the boardroom was also important: “Are boardroom decisions being watered down in the corridors after the meeting”, she asked, pointing out that it was important for boards and leaders to “don’t just say it, do
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it” and reminding the audience of a famous quote, ‘Culture eats strategy for breakfast.’ Learning to turn down the volume on your own expertise to leave space for colleagues to play an active part in future strategy not only secured the widest possible contribution from your talent pool but also helped develop the next generation of leaders – one of Leslie’s personal four ‘pillars of wisdom’ that ran through her leadership creed. Leaders in all sectors need to “know who they are and what they know” and look to regenerate and grow their own skills. The Civil Service in Scotland needed to adapt to changing priorities if it were to properly fulfil its remit, to make Scotland a better place for its people. Leslie had initiated a conversation with her workforce by asking them to contribute to how the Civil Service should look in 2020. There was a view that its hierarchical structure was holding back talent and that
the organisation’s culture did not always allow for the agile management required. The service needed to be more inclusive and tackle inequality, and she issued a challenge to all IoD members: “Who in your organisation is working to promote the talents of women? Who is working with black and other ethnic minority groups, with the gay community?” A successful Scotland of the future would be a country that calls on talented people from every sector. Among the groups that can be overlooked are young people. All organisations had to open themselves up to look at the world through their eyes and understand that the way we lead, manage and build teams today is not the way it will be done by the next generation. “The traditional view of leadership – to protect, steer, control – is no longer feasible and is holding back our ability to adapt and embrace change.”
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Are boardroom decisions being watered down in the corridors after the meeting? Remember, culture eats strategy for breakfast
For too many leaders their experiences and knowledge were derived directly from their direct peer group: “Ask yourself,” she instructed conference, “how much time do you spend with people who are not like you?” Leslie’s principal challenge for government in Scotland was to improve the quality and consistency of Civil Service management, to make it more transparent to the public it serves and to answer the First Minister’s call, that it become the most open Government in the world. But she concluded that, despite the new challenges, leadership had not changed one iota over the generations, despite what many people may think. “It has always been based on our humanity, our ability to listen and respond to others, to create a team spirit around a common purpose.” Debating the points: Professor Andrea Nolan obe, principal and vice-chancellor, Edinburgh Napier University makes a point during the Leadership debate, watched by (from right) Russell Dalgleish, entrepreneur; Ronnie Wayte, CEO, Golden Charter Ltd; and Leslie Evans (also in main picture right)
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“Ask yourself... how much time do you spend with people who are not like you?”
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Integrity key to a successful business - but taking risks has a role to play IoD Scotland Conference Plenary Session
Simon Walker, IoD Director General
Ben Wilson,
Inverlussa Marine Services
Gordon Dewar, Edinburgh Airport Ltd
IoD Director General Simon Walker called on business leaders to place their personal integrity behind decisions, highlighting the recent Volkswagen scandal as an example of what happens when this value is lost from boardroom decision-making. He made his comments in a three-way opening address to the IoD Scotland Conference, where he was joined on the stage by Gordon Dewar, chief executive, Edinburgh Airport, and Ben Wilson, managing director of Inverlussa Marine. The three discussed the values and strategies needed for business leaders to look ‘beyond the horizon’ and plan for both growth and to cope with unexpected change, with agile and innovative leadership at the top of their collective agendas. Gordon Dewar raised the issue of organisations’ attitude to risk, highlighting the airport’s growth strategy as an example. To achieve its remarkable expansion in recent years – it remains the UK’s fastest growing airport – the board had sought to generate a common language to help people from different
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sectors within the airport develop common goals. To facilitate its expansion, the airport had used a risk matrix to identify areas of its growth strategy where operational risk was acceptable. Safety and security were designated ‘no risk’ areas, as they were central to public confidence, but the board were happier to stretch its commercial and budgetary risks in some areas to ensure growth plans were met. He cited the successful arrival of regular Etihad Airways flights to Edinburgh as an example: while a huge coup for the airport, the flights involved massive upheaval, including the building of a new immigration hall to facilitate arrivals, and constituted something of a risk for the airport. Dewar believes the language of risk is too often mis-used; common ground has to be sought around the boardroom as to where increased risk is acceptable. Simon Walker believed that risk was always unacceptable in areas where the organisation’s reputation could be compromised. He quoted former US
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For business, real value is integrity; a hard to define quality, it was easier to spot when it was missing ...
Conference presenter and outgoing IoD chairman Ian McKay with speakers Simon Walker, Ben Wilson and Gordon Dewar
president Dwight Eisenhower in saying ‘real value is integrity’; a hard to define quality, it was easier to spot when it was missing – as in the infamous case of Gerald Ratner’s one-man destruction of his company’s reputation when he hailed its jewellery products as ‘crap’. Volkswagen’s current problems were an example of a company tarnishing its image through bad decision-making, leaving Simon to wonder if VW would ever get its reputation back as an organisation that could be trusted. The car giant’s recent experiences were reinforcing public mistrust of big business. A recent survey had found that 64 per cent of the public believed big businesses had inevitably ‘cheated’ their way to the top. While worrying, he was more heartened by a second poll that showed how highly the public regarded successful business leaders, with two-thirds placing them on the same pedestal as inspiring doctors,
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Questions from the floor Q: How can an organisation handle the media spinning a situation against it? Simon Walker: Be transparent from the off – and remember the Warren Buffet adage: ‘It takes 20 years to build a reputation, and 10 minutes to blow it.’ Q: On future expansion for Edinburgh Airport: Gordon Dewar: “We need new air space if we are to add more routes. It will be a challenge as it will mean flights are coming in over people’s homes who haven’t experienced them before. We will need to talk to people, communicate our plans and have support from politicians so that the vast majority benefit from the airport’s growth.’ On expanding your business… Ben Wilson: Be careful you don’t get over confident. Plan for the long-term; our mistake was planning our growth in connection with today’s needs… they changed and we struggled to keep up.
nurses and teachers. However, this lack of trust concerned Simon: he hailed drive and ambition as keys to success but pointed out that without them being underpinned by integrity, that success would not last long. Ben Wilson’s experiences as the driving force behind Inverlussa Marine was a great example of calculated but ethical risk in a business environment. The company had grown rapidly from a simple fisheries business into one that supplies vessels for a number of maritime applications, including supporting fish farms and offshore wind. Expansion has been swift but long lead times between designing and building vessels and putting them into service had caused huge problems, particularly when a vessel aimed at the offshore wind energy sector had been delivered just as Government interest in the area cooled.
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Drive and ambition are the keys to success... but without them being underpinned by integrity, any success would not last long...
On challenging those in business who let standards slip: Simon Walker: It is the IoD’s job to support business and promote a free market economy… but it is also our job to call businesses out when they get it wrong. We are best placed to criticise those firms such as VW who abuse the public’s trust… we have to do it and not leave the criticism to the people who hate the free market anyway...
However, agile thinking had seen the vessel adapted sufficiently to put it into service in the expanding fish farming sector. The experience had taught the company to plan not for today’s needs but for those two-three years in the future. A classic case of ‘looking beyond the horizon’ to envisage and plan for future.
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BBC Scotland’s Big Debate made a welcome return to conference, with IoD delegates being joined by local people to cross-examine politicians and senior business figures on the issues of the day. Topics covered included the continuing tensions within the Labour Party over the renewal of Trident; whether the SNP should step in and use its powers at Holyrood to top up Child Tax Credits if they are axed by Chancellor George Osborne, and concerns over the new Police Investigative Powers Bill – is it a snoopers’ charter or a vital measure required by the police to give it the tools it needs to counter-act crime in a digital age? The panel also considered business concerns over the skills gap in the Scottish economy, and whether a more joined-up approach was needed between the education sector and businesses to ensure young people leave school and college with work-ready skills.
IoD Scotland joins in with the Big Debate
Conference questions Conference saw delegates asked to take part in various ‘vox pops’ through the day, with questions asked on the key issues impacting on the business community If the UK were to vote to leave the EU, would it damage your business? Yes, 63% No 37%
Yes, 63%
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No 37%
Would leaving the EU damage the Scottish economy? Yes, 88%, No 12%
“Current police powers allow them to monitor landlines and the post… but no one uses landlines any more…” Jackson Carlaw “Scotland’s workforce planning is very slow… business needs to be more demanding of young people’s skills development” David Watt We need to make work attractive. It has to be wrong that if someone does a few hours more work they lose all their benefits… it cannot be beyond the wit of man – or politicians – to devise a sliding scale on benefits so people don’t lose out David Watt
No 12% Yes, 88%
How do you rate the chances of the UK voting to leave the EU? Very high 3% High 13% Medium 29% Low 34% Very low 17%
“Whether the UK is in or out of EU membership, Scottish businesses and entrepreneurs have a key role in building connections across the world. We should begin with a global mindset. Government’s role is to remove barriers to global trade and collaboration, as well as proactively to support businesses with internationalisation plans.” Andy Lothian, Director of Insights 18 | WINTER 2015
“The business position over EU membership is probably not dissimilar to a large proportion of the population, who would like to see improvements in the operation of the Union and better delivery of benefits to economies across Europe. To achieve this, business should be actively involved in the discussions leading up to the referendum. In the longer term, working to create stronger international links and increased exporting opportunities should provide a significant boost to business.” David Watt, Executive Director, IoD Scotland
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Conference presentation: UK Young Enterprise winner
Betty Andrews
Conference’s youngest speaker delivered arguably the day’s most inspiring presentation as Betty Andrews outlined the creation of Fjara, a unique jewellery business based in the Orkneys. Fjara – it means ‘beach’ in Norse – was a Young Enterprise Scotland company, and proved so successful that not only did it win the Scottish competition but Betty went on to lead her team on a triumphant trip down to London where it was named the UK‘s Young Enterprise Company of the Year. Betty’s 16-strong team had hit upon the novel idea of using ‘sea glass’ as a base for beautiful and unique jewellery, taking a waste product that is found washed up on the shores of Orkney and crafting it into pendants. The jewellery had found a customer base not only among local people but with the scores of tourists who visit the island every year – a high-quality and affordable
Session chair Laura Gordon and Gilly MacMorran with speaker Betty Andrews keepsake that had strong links with the Orkneys and reflected its history and heritage. Her team worked superbly together; Betty’s task as MD was harnessing their individual talents, putting the right people in charge of tasks that matched their skill set and interests. Her vision to use recycled products had proved challenging but hard work and perseverance had resulted in a
high-quality product the team could be proud of. Her mature leadership style had paid off in terms of team loyalty; while Young Enterprise teams often drop numerous team members along the way, Betty’s had maintained their enthusiasm and focus throughout the year, with 15 of the 16 original team members still involved in the end.
YDF is voice for future leaders Lex Mancini was on hand to promote the fledgling IoD Young Directors Forum (YDF) to conference. The YDF offered a chance for younger directors to network, access peer support and compare business experiences with other business leaders at the start of their careers. “Business needs to look at how it can grow its new leaders into senior positions. The YDF offers a new path through which younger directors can gain the experience they need.” she said, adding, “we are there for entrepreneurs and intrapreneurs – those high fliers in your organisation who are being earmarked for senior positions in the future.”
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Lex in conversation with delegate Sam McFarlane, IoD YDF Committee member, at conference The YDF was a reflection of the exciting sea-change occurring across Scotland, as more younger people launched their own businesses or were promoted to leading roles. “Scotland is a land offering huge opportunities for its
younger business people and the YDF wants to create a legacy of new directors,” added Lex. n For more information on the Young Directors Forum, contact Lex Mancini via Alexandra.Mancini@tilneybestinvest.co.uk
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Conference workshops Delegates were invited to attend one of four workshops held during the morning session, covering a wide range of subjects. Delegates learned more about how employers can connect with colleges across Scotland through the College Development Network; while the question of ‘Working Hard or Hardly Working: Is it Time to
Upgrade your Board Portal? ’ was considered by Diligent, which put its Boards solution in action to demonstrate how to gather documents more efficiently and build meeting books in minutes. Pathways to Public Appointments: Maximise your Chance of Success was delivered by the Scottish Government and
examined how we develop ourselves as potential board members and the steps required to gain a public appointment. Finally, Vistage outlined the Seven Winning Habits for Future Leadership Success – an interactive workshop that centred on exploring the factors that impact on business success.
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Bottom line? It’s all about inclusivity and diversity of thought Conference presentation:
Liz Bingham obe Partner, EY,
Improving diversity and inclusiveness in the workplace isn’t just a soft-focus goal for the HR department; it’s a hard-edged strategy that will deliver growth and improved profitability to your business. That was the stark message of EY’s Liz Bingham, who joined Philip Grant of Lloyds Banking Group for a double-headed session that offered new thinking on some of the most important issues affecting modern business. Liz’s role within EY was to create an environment where everyone could succeed, no matter what their race, colour, religion, sexuality or background. Research by, among others, McKinsey, had highlighted how inclusive workforces created better businesses, and having a balanced board brought new thinking and more rounded strategies.
EY had conducted its own internal survey into its people, looking to see whether there were strong links between its more engaged workforces contributing to improved financial performance. It was clear that where EY had got its employee engagement right its workforce believed their voice was heard, their opinions mattered and – crucially – they were part of a team. Only through diversity of thought could businesses hope to grow in the future: groupthink – surrounding yourself with people like you – was not going to open up new areas for business growth. Businesses had to be led by people who lead in an inclusive manner and create an environment in which people are not afraid to speak up. A huge danger to businesses is when they operate in a hierarchical manner – with Liz wondering openly whether the current problems facing VW would have happened if the business was more open and allowed junior executives to question and challenge boardroom decisions. The fight for a gender-balanced board was nowhere near over. While some commentators had trumpeted in triumph
that women made up 26 per cent of the boards of the FTSE 100 companies, this was not enough, said Liz – though she believed that cracking the ‘class’ ceiling was just as important as the ‘glass’ ceiling that prevented women making further progress. “It’s not women good, men bad,’ she said. ‘It’s embracing all and having a difference of views, cultures and backgrounds that gives you a competitive advantage and keeps you relevant.”
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It’s not women good, men bad... it’s embracing all and having a difference of views, cultures and backgrounds that gives you a competitive advantage ...
Session chair Laura Gordon with presenters Liz Bingham and Philip Grant
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The banking fightback Philip Grant
The rebuilding of trust in Lloyds Banking Group The transformation of Lloyds Banking Group into a leaner, UK and customerfocused operation, stripping it back from its pre-financial crash high point in terms of size and global reach, was the subject of an in-depth presentation by Philip Grant, chairman of the Scottish Executive Committee of Lloyds Banking Group. It had been an enormous task, and one that had required a total change in the organisation’s mind-set and culture. But, he stressed, “the lessons of our past shape the bank today.”
Led by its dynamic CEO Tony Osório, a new strategy had been developed, focusing on the creation of a customerfocused retail bank. The bank de-risked its balance sheet, stripped out non-core business and cut staff by nearly half. It had helped increase customer choice by returning to the High Street the distinctive name of TSB and carefully redeployed people to ensure redundancies were kept to a minimum. The bank had learned valuable lessons, chief among them was identifying when risks taken could be influenced by personal gain. “That’s why our call centre staff receive no sales incentives. Instead, they aim to meet customer expectations.”
By diversifying its product offer and entering new markets the bank had been able to reassure the City of London with sustainable growth, particularly in the area of motoring finance through the successful relaunch of Black Horse Finance and Lex Autolease. “We are a wholly different business from how we were before,” he said. “Today, everything is planned around the needs of the customer. “Our employees are given more flexibility to listen to customer requirements and respond to them. “They have the confidence to be innovative, to think for themselves and that has proved a game-changer for the business as a whole.”
“The professions are sleepwalking into the future without appreciating the changes that are coming. The bank’s future will be increasingly digital, and many tasks done by people at the moment will be done digitally in the future.” Philip Grant, Lloyds Banking Group
A vision of a very digital future Stephen Whitelaw
The digital future - and how it will crush the unready Futurologist Stephen Whitelaw brought conference to a close with a dazzling and jaw-dropping presentation on the impact of increasing digitalisation: there’s a runaway train coming your way, whatever sector you work in, and it is going to smash through your pre-conceived ideas as to how you work, he said. “The pace of change in the web is extraordinary,” he said, with “more information created last year than in the previous 5,000 years combined. Gigabytes of new data is being created every minute.” We are now at ‘Web 3.0’, a deeper, more intelligent iteration that was attuned to your needs. The future of the internet – note the word ‘internet’; the ‘world wide web’ is finished in Stephen’s eyes, as we prefer closed sites – was going to both change people’s lives and the way humans interact. He cited evidence of young children whose use of technology at an early age was already changing the way their brains were
hard-wired – toddlers as young as 2-3 now automatically ‘pinch’ screens to move shapes and increase objects in size – and a growing awareness of ‘filter failure’, where we cannot stop information from reaching us and overburdening our mind. His presentation offered stunning titbits: • Why Facebook’s dominance is under threat… as a third of teenagers turned off their accounts last year • Why Amazon hates ‘shopping
carts’:“There are literally billions of these littering the internet, uncompleted… Amazon hates that. They want you to see, to buy, without any other steps getting in the way – or buy for you ...” • Why the future of the internet is about telling you what you need before you need it: “in the future you won’t need to remember to order your toner or coffee; the machines will do it for you automatically” • Why education is changing: “a third of people now learn online. In Asia, thousands get up at 3am to log on to study university courses in the United States. The campus is dead!” • Marketers are finished: “People no longer look for brand recognition; they want social validation of everything they buy, see and do.” • The benefits are extraordinary - but so are the risks: “we are in a new age of threats to our privacy and security. Beware libel!” But for all these changes, the big one that would impact on everyone was 3D printing. “This will change everything; it will hit the world far more than the internet ever has. Potentially thousands of businesses will be affected, many terminally.”
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The railwayman’s journey Phil Verster
Managing Director, ScotRail Alliance Phil Verster - “a railway man through and through” – has an ambitious target for the ScotRail Alliance: to grow the current 93 million passenger journeys to 129 million by 2024, while ushering in a new smart ticketing operation and welcoming a host of tourists. This grand vision was to be played out against a backdrop of complex industrial relations and often staggering logistical problems, but with staff who are encouraged to “smile even when stressed” – including when confronted by aggressive drunks on a Friday night – he was sure it was a vision that would come to fruition. Uppermost in all his plans was the farepayer: “always put the customer first” was his maxim, and he had challenged all senior managers within the operation to remember that, even if their job did not involve day-to-day interaction with the general public. To Phil, leadership is based around an easy premis: Customers come first; we improve what we do and take responsibility – don’t be a victim; we are safe and punctual; we work as one team together; and finally, we treat the company’s money as if it were our own. Phil – a champion of lean thinking – wanted to inspire all his front-line people to communicate better with the public. But this would only work if all management were bought into the concept, so every office-based manager was encouraged to get out from behind their
desk regularly, “get out on the pitch” to see how the business was operating at the coalface. The ScotRail Alliance held a peculiar position: it was so close to the Scottish Government that it could be a hindrance
“Customers come first; we improve what we do and take responsibility – don’t be a victim; we are safe and punctual; we work as one team - together; and finally, we treat the company’s money as if it were our own...”
Conference supporters
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to some. Phil‘s solution had been to be even more transparent: “We’ve opened all the doors to Transport Scotland, to let them see how it all works, the problems we face, in order that we have an open and honest relationship.”
EVENTS
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Talking tough: why resilience is key to successful leadership Mental Toughness for Resilience and Wellbeing: the secret ingredient of champions? Date: January 20, 2016 Time: 6pm - 9pm Venue: Badenoch & Clark, Edinburgh Cost: Members, £25 + vat Non Members, £30 + vat Mental toughness gives us the capacity to stay in the moment and keep our head when others are losing theirs. This session will explore mental toughness and some simple tools you can use to raise your game. Have you ever wondered what makes someone a good leader? Research shows that mental toughness plays a huge part in having a successful impact. It involves resilience, grit, determination, hardiness, positive attitude and confidence that enables us to deal effectively with stressors, pressures and challenges and to perform
well under pressure and cope with struggle. Mental toughness means we are well prepared to make the most of pivotal moments when they occur unexpectedly. The great news is that mental toughness can be learned and is a fabulous tool to help you raise your performance and overall wellbeing. Today we will explore mental toughness and some simple tools you can use right now to raise your game. Our speaker leading this event will be Dr Sue Mitchell. Dr Mitchell is the director of Aeona (www.aeona.co.uk) a coaching and leadership development consultancy and recognised ILM Provider for Development Programmes on leadership and coaching skills. Sue’s purpose is to inspire managers and leaders to do the things that inspire them, their people and their organisation. She delivers coaching, facilitation, training, seminars and psychometric profiling for
executives, leaders and private clients. Specialities include emotional intelligence, mental toughness and NLP. Her coaching approach focuses around purpose, values, awareness, meaning, strengths and passions to inspire confidence, authenticity and personal power to deliver results. Sue’s clients say this approach gives them phenomenal success in stretching horizons and achieving their aspirations. Sue is well known for her inspiring events where she shares expert knowledge in fun and informative sessions. She founded Leaders in Scotland (www.leadersinscotland. co.uk) to encourage managers, leaders and business owners to think about leadership outside of formal training programmes. Dr Mitchell also organises thought leadership conversations in Edinburgh, focusing since 2014 on women and leadership. This event is equal to two CPD hours
A new way to find growth finance Raising finance: Alternative and new sources of funding Date: 3 February Time: 08:30 - 13:30 Venue: MMS LLP, 15 Lauriston Pl, Edinburgh EH3 9EP Cost: Member £50 + VAT Non-member £60 + VAT  Are the traditional routes of equity finance and bank lending meeting your needs for developing and growing your business? Are there simpler ways in which to raise funds more quickly and effectively? Find out more at this half-day workshop. This half-day workshop will look at the range of alternatives to mainstream banks with practical case studies from businesses that have pursued this route for funding. This is the fourth in a series of Scottish seminars arranged by IoD Scotland in response to requests from members for
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clarity on the range of funding sources currently available to support their business needs. Are the traditional routes of equity finance and bank lending meeting your needs for developing and growing your business? In many instances, the answer is no. Equity finance is highly selective and typically has a long lead time. Which banks are lending in which markets is not obvious, and hence the picture is confusing. Are there simpler ways in which to raise
funds more quickly and more effectively? The answer is yes. The crowdfunding market has developed strongly in response to meet these needs – and to offer investment opportunities at a time when the general returns on money are very low. There are alternatives to the mainstream banks. This workshop, sponsored by MMS, will provide expert advice and know-how on: • How to raise funds from the crowdfunding market. This will cover equity, peer lending and rewards for donation schemes. • Sources of commercial lending other than from the mainstream banks. • How to optimise relationships with the mainstream banks. These banks are “open for business” –the trick is to understand the circumstances in which each is lending and the terms on which they are doing so. This event is equal to 4 CPD hours
EVENTS
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Finance is the language of the Boardroom Leadership Diversity Event Date: February 23, 2016 Time: 5:30 pm - 8:30 pm Venue: University of Strathclyde, Court Senate Suite, Collins Building, Glasgow G1 1XQ Cost: £20 + vat  This is the second in the series of Leadership Diversity Events we are holding in partnership with ICAEW, ACCA and CIMA. The financially-qualified professional is a key player in the boardroom, with the skills-set to identify long-term risks, market dynamics and lead businesses from the front. Equally, a diverse boardroom encourages a challenge culture that produces balanced strategic decisionmaking. This joint event brings together experienced boardroom specialists to share their knowledge of why strong financial leadership in a diverse boardroom setting
Professor Sara Carter
can add long-term value in a challenging modern business environment Professor Sara Carter – Professor of Entrepreneurship and Associate Deputy Principal (Learning & Teaching) will Chair a panel debate including three keynote leadership speakers from the public sector and private sector from government, financial services and business. Key takeaways from this event will include: n Investing in your leadership development to support your career path to the boardroom as an Executive or Non
Executive Director n Financial qualifications are the first step on your leadership journey n Diversity of thought and purpose make for a better and sustainable organisation in all sectors. This event is equal to two CPD hours
To book, see www.iod.com
Cheers! YDF gets you in the Christmas spirit Young Directors Forum Christmas Drinks at Edinburgh Gin Distillery Date: 14 December Time: 7pm-9.30pm Venue: Edinburgh Gin Distillery, 1a Rutland Place, Edinburgh, EH1 2AD Cost: Member Price – £10 + vat Non-Member Price – £15 + vat  The IoD Young Directors Forum invites you to get into the Christmas ‘spirit’ with an exclusive evening at the Edinburgh Gin Distillery. Expect G&Ts on arrival, a ‘behind the scenes’ tour of the distillery and plenty of other merry-mas to boot. This event will also be a great chance to network with fellow young business leaders in a convivial and sociable atmosphere. Tickets for this festive frolic are
incredibly limited so be sure to book yours now so as not to miss out! Go to www.iod.com to book your place and get in the mood for Christmas.
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EVENTS
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Economist to question pace of recovery Date: 10 December 2015 Time: 17:30 - 18:30 Venue: University of Stirling Court (Cottrell Building). Cost: Free of charge This event is hosted by IoD Scotland and the University of Stirling Management School The University of Stirling Management School, in partnership with IoD Scotland, invites you to attend this year’s annual lecture by the School’s eminent economist, Professor David (Danny) Blanchflower. Danny will share his analysis and observations on the topic: ‘Is this the slowest recovery ever?’ Professor Blanchflower is a research associate at the National Bureau of Economic Research, a visiting scholar at the Federal Reserve Bank of Boston and was a former member of the Bank of England Monetary Policy Committee. In September 2015, he was appointed to the Labour Party’s Economic Advisory Committee. Danny is also a regular economic columnist for the New Statesman magazine, the Independent and a contributing editor of Bloomberg Television. We hope to have a broad spectrum of
leading figures representing private, public and third sector organisations, including many alumni, in attendance alongside university students to listen to Danny’s engaging commentary on the extent to which the global economy has recovered. Using key indicators such as outputs, employment levels and wages, Danny will explore the question of what could have been done to have prevented the recession? What lessons have been learned – and what the Bank of England can do to improve the current situation? The lecture will be followed by a drinks
This event is equal to one hour’s CPD.
Influencer’s dinner: the economic picture Date: 10 December 2015 Time: 18:45 - 21:30 Venue: Stirling Court Hotel Cost: Members, £55 + VAT Non-members, £65 + VAT In association with the Stirling Management School, IoD Scotland is delighted to announce that Professor Blanchflower will be our speaker at an exclusive Influencer’s Dinner, at which he will share his views on current matters
IoD at the hustings The IoD will be holding a series of Scottish Elections Hustings breakfast events with MSPs and candidates from all parties in the run-up to next year‘s vote. The events, which are in partnership with ACCA, will take place as follows: Edinburgh: Friday, February 19, hosted by Gillespie Macandrew LLP, 5 Atholl Crescent, Edinburgh EH3 8EJ Glasgow: Friday, February 26, hosted by BDO Solicitors, 4 Atlantic Quay, 70 York Street, Glasgow G2 8JX. Further events will be held in March in Aberdeen, Dundee, Inverness; dates and venues to be confirmed
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reception at 6.30pm, and we would be delighted if you could stay to join us for this.
affecting the economy, business and enterprise. The dinner will follow immediately on from his guest lecture at the Stirling Management School on the topic “Is this the slowest recovery ever?”. The IoD Scotland Influencer‘s Dinners gives members an unrivalled opportunity to talk directly to the most senior political and civic figures in Scotland. This event is equal to 2.15 CPD hours
Bringing the IoD’s alumni together
IoD Scotland Director Development Alumni Supper Venue: Balmoral Hotel, 1 Princes St, Edinburgh EH2 2EQ Date: February 10, 2016 Time: 6:30 pm - 9:30 pm Cost: Members, £75 + vat; Non Members, £95 + vat This is an invitation only event It is far too long since we brought our IoD Scotland Chartered Directors and other alumni from our IoD courses together, so to rectify this we are organising an evening of
good food and good company on Wednesday, 10th February at the Balmoral Hotel in Edinburgh. Our new Chair Professor Susan Deacon will be our guest to regale us with words of wisdom on a pertinent topic and you will have the opportunity to network with fellow alumni who have honed their talents through participation in IoD Chartered Director courses, Networks and Professional Development workshops.
To book on any event, see www.iod.com
EDUCATION & TRAINING
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The Scottish Qualification Authority’s (SQA) new National Qualifications are now being taught in schools and colleges across Scotland. The new National Qualifications place more emphasis on developing skills, and will equip young people with the essential skills and knowledge they will need for life and work in the 21st century. The table below shows the new qualifications, how they replace the previous National Qualifications you may already be familiar with, and what to look for on CVs and application forms. The new qualifications not only provide learners with the opportunity to gain knowledge but also help develop practical skills like data collection, literacy, numeracy and team working; Core Skills like communication, ICT and problem solving; and Skills for Learning, Life and Work such as employability, independent thinking, and enterprise and citizenship. New courses have been introduced to support young people in their progression to further study or employment in areas of industry growth, to prepare them for changes in technology and to reflect the increasing demand for a skilled and experienced workforce. Courses include Lifeskills Mathematics, which helps learners gain mathematical skills and knowledge they can use in the workplace and in everyday life; and Engineering Science, which develops learners’ knowledge and understanding of engineering concepts and practices. SQA is also one of the main strategic partners in the Scottish Government’s Developing Scotland’s Young Workforce (DYW) initiative. DYW aims to create a world class vocational education system in
Scotland’s on a journey to a better qualified workforce Scotland over the next seven years, improve the options on offer for young people and reduce youth unemployment. We have an important role to play in Developing Scotland’s Young Workforce and already work closely with training providers and employers to ensure young people have the skills and qualifications employers are looking for. SQA understand the needs of learners and employers, and how we can help one group to help the other, creating a more motivated and more productive workforce. SQA Journeys has been designed to support DYW and aims to inspire the next generation, enabling individuals to succeed in their lives and achieve their goals. Everyone has a part to play, so that everyone benefits – our young people, our businesses and Scotland as a whole. Dr Janet Brown, SQA Chief Executive said, “SQA is proud to be at the heart of the education and skills system in Scotland and is committed to helping young people realise their potential and to achieve their ambitions. SQA qualifications, highly
regarded across the world for their consistent standards, are a valuable asset to those who achieve them. “They prepare people for life in general as well as for progression into further study, training or employment.”
Want to know more? To find out more about the new National Qualifications, visit www.sqa. org.uk/curriculumforexcellence Download SQA’s latest guide for employers at www.sqa.org.uk/cfeforemployers Follow SQA on Twitter (@SQAnews) or subscribe to SQA’s YouTube channel SQAonline Find out more about SQA awards at www.sqa.org.uk/awards Find out where SQA Journeys can take us at www.sqa.org.uk/journeys
The qualifications matrix SCQF level
Previous National Qualifications
Replaced by
New National Qualifications
Advanced Higher
>
Advanced Higher
7 6
Higher
> Higher
Intermediate 2 5 Standard Grade (Credit level)
>
National 5
Intermediate 1 4 Standard Grade (General level)
>
National 4
Standard Grade (Foundation level) 3 Access 3
>
National 3
2
Access 2
>
National 2
1
Access 1
>
National 1
WINTER 2015 | 29
DIRECTOR DEVELOPMENT
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Take your career to the next level
For booking forms and more information email director.scotland@iod.com or visit www.iodscotland.com
The Chartered Director Programme (CDP) Chartered Director (CDir) is the only professional qualification for all directors that demands both knowledge and experience of how to make boards effective and which demands a commitment to continuous Professional Development. Courses can be taken individually if the Certificate is not the
alone course. The Diploma in Company Direction can only be attended upon completion of the Certificate in Company Direction. Both Certificate and Diploma exams must be passed prior to applying for Chartered Director. For further information please contact director.development@iod.com
goal. If an award is preferred the four courses can be spread over two years before sitting the exam. Alternatively, a one-week Accelerated Programme is also offered. Directors can test their current level of knowledge using the Directors’ Insight Tool. Any of the Certificate in Company Direction courses can be taken as a stand-
The Certificate in Company Direction* (Chartered Director Stage 1)
Role of the Director and the Board
2 days + post-course e-learning support This course looks at the key duties, roles and legal responsibilities of directors, corporate governance and the role of the board. It also looks at the crucial differences between management, direction and ownership and offers guidance on improving board effectiveness.
Finance for Non-Financial Directors
3 days + post-course e-learning support This course will demystify the world of finance, allowing you to contribute more effectively to boardroom discussion. It will ensure that you develop the skills you need to evaluate and monitor the financial health of a business
The Director’s Role in Strategy & Marketing
3 days + post-course e-learning support This course provides an introduction to the key ideas and approaches to strategic direction and marketing within your organisation. It will assist your role in leading the strategic process.
The Director’s Role in Leading the Organisation
2 days + post-course e-learning support This course will appraise the role of the Board in setting objectives, culture and values and the techniques, tools and resources needed to deliver corporate strategy. It demonstrates the individual director’s role as a Board member and as a corporate leader in driving strategic change.
The Diploma in Company Direction** (Chartered Director Stage 2)
Chartered Director*** (Chartered Director Stage 3)
Developing Board Performance
Chartered Director
3 days In this course, you will act as a board member facing a variety of typical issues and crises. The challenge is to apply the knowledge and learning gained from the Certificate in Company Direction courses and e-learning to real life situations. This is your opportunity to put theory into practice. You will receive feedback on your own and your group’s performance as the ‘board’ reviews and appraises its own impact and effectiveness.
The Chartered Director Qualification assesses the practical experience gained by a director. This is based on five key areas which are central to organisational direction and governance. The interview is based on an exploration or your portfolio of evidence. The interviews are conducted by experienced peer reviewers – who will generally be Chartered Directors
* Any of the Certificate in Company Direction courses can be taken as a standalone course ** The Diploma in Company Direction can only be attended upon completion of the Certificate in Company Direction *** Both Certificate and Diploma exams must be passed prior to applying for Chartered Director 30 | WINTER 2015
Forthcoming courses at the IoD Director Development within IoD Scotland also includes committee-organised events and our locally-managed Professional Director Series of full and half-day workshops. We regularly add to our schedule so bookmark our IoD Scotland Events calendar and keep an eye out for our regular Director Development emails. All our workshops and events are open to members and non-members and usually bring together delegates from a variety of sectors and locations to share experience and knowledge. Date
Course title
04/02/16 What Kind of Leader are You – Ros Taylor? 09/02/16 Role of Director & The Board (2 days) 10/02/16 Alumni Supper (invitation only) 18/02/16 Role of the Non-Executive Director (GLA) 23/02/16 Role of the Trustee/Board Member in the Third Sector 25/02/16 Leading from the Front – Ros Taylor 03/03/16 Role of the Non-Executive Director (EDI) 03/03/16 Confident Leadership – Ros Taylor 07/03/16 Finance for the Non-financial Director (3 days) 15/03/16 Strategic Innovation for Directors (EDI) 16/03/16 How to influence others & handle challenging people – Ros Taylor 04/04/16 Directors Role in Strategy & Marketing (3 days) 12/04/16 Winning Board Behaviours (EDI) 21/04/16 The Creative Advantage – Ros Taylor 21/04/16 Role of the Non-Executive Director (ABD) 28/04/16 Presentations to win business – Ros Taylor 05/05/16 Transformational Leadership 09/05/16 Directors Role in Leading the Board 24/05/16 The Role of the Chair (GLA)
Time
Venue
9-1 9-5 6.30-10.30 9-5 9-5 9-1 9-5 9-1 9-5 9-5
Royal Scots Club, Edinburgh Royal Scots Club, Edinburgh Royal Scots Club, Edinburgh 200 SVS, Glasgow Royal Scots Club, Edinburgh Royal Scots Club, Edinburgh Royal Scots Club, Edinburgh Royal Scots Club, Edinburgh Royal Scots Club, Edinburgh Royal Scots Club, Edinburgh
9-1 9-5 9-5 9-1 9-5 9-1 9-5 9-5 9-5
Royal Scots Club, Edinburgh Royal Scots Club, Edinburgh Royal Scots Club, Edinburgh Royal Scots Club, Edinburgh Robert Gordon Univ., Aberdeen Royal Scots Club, Edinburgh Royal Scots Club, Edinburgh Royal Scots Club, Edinburgh 200 SVS, Glasgow
For further information please contact director.development@iod.com
Role of the Non-Executive Director
The backbone of our Professional Director Series, this one-day course identifies the various roles of the non-executive director (NXD) in a variety of corporate settings – family company, subsidiaries, Third Sector and 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. Over 300 directors have undertaken this NXD courses in the past five years.
IoD Scotland’s Board Development and Performance Evaluation Service Our research, consultancy and facilitation service aims to promote best practice within Scottish Boardrooms. Whether you operate in the private, public or third sector we can help directors and trustees clarify their individual roles and responsibilities, and transform their collective performance within the boardroom.
Our service is independent, researchbased and confidential and delivered by a professional team with extensive boardroom experience in the corporate, public and not-for-profit sectors. It is always tailored to meet your needs, providing a package of activities that range from a one- day workshop to a programme
of continuous development. It covers three major areas – board evaluation, board development and development of individual directors. For more information contact the IoD via director.development@iod.com
WINTER 2015 | 31
COMMENT
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Modern challenges demand a modern chair Samantha Barber says that well-run, diverse boards will only function properly under a forward-thinking chair During a recent trip to London, I joined with a small group of chairmen and NEDs to discuss the challenges facing a chairman in turn-around situations in companies. This is where the chairman, along with the executive team, leads the fight to restructure finance, the corporate strategy, structure and people to ensure the business does not go under. Time and time again, I hear issues boil down to corporate governance, lack of diversity in the Boardroom, group-thinking and a skill-set in some executives which does not match the business needs at that moment in time. The discussion around diversity on the Board always revolves around the skill-set, experience, expertise and thinking style. Developing a Board which creates the right dynamic for the business is becoming a bit of an art. Most Boards still rely heavily on accountancy, legal and risk as the experience that is required. However, many of the challenges which face Boards today were not as prevalent 10 years ago, and some are even new. There is a far greater
emphasis on governance, transparency, communications, disruptive technology, consumer behaviour, stakeholder relations, shareholder activists, the digital challenge, reputational and brand risk. Indeed, the pace of change and external expectations necessitates that more room is made for these topics on the Board agenda. There is still a great tendency for Boards to focus on past performance and assess situations facing the business in light of past experience. In the case of the property market, in the early years post the financial crisis in 2008, past trends were of little use in guiding decisions for what lay ahead. A diverse Board can only really function well and be highly effective for the business with the right person in the position of chairman. Today’s chairman needs to be an inclusive leader, creating
Modern chairmen need a great deal of emotional intelligence... it is a far cry from the days where the Chairman would say... ‘When I want your opinion, I’ll let you know what it is!’.
the right culture around the Boardroom table to draw out the different styles, strengths and perspectives of the Board members. Board leaders must have a degree of understated self-assurance and emotional intelligence, understand how to welcome challenge and integrate it usefully into the Board discussion, while listening constructively to contributions and weigh up the balance of different perspectives. It is a world away from the days where the Chairman said, ‘When I want your opinion, I’ll let you know what it is!’. The right Board dynamic and culture should have trust, transparency, challenge, candour and respect, thus creating the right amount of cohesiveness and tension at the same time. Diversity in the Board room is neither a numbers game nor a tick-box exercise. The risk is that, if too much focus is only spent on creating a Board that looks diverse, when we close our eyes we may find that everyone sounds the same.
• Samantha Barber is an experienced portfolio NED
Leading from the front The new chair of IoD Aberdeen, Mark McCue, was on hand to welcome around 100 delegates to a special workshop held at the city’s Robert Gordon University in which the secrets of successful leadership were put under the microscope. Speakers included representatives of some of the city’s brightest businesses and the oil and gas sector Pictured left at the event are, back row from left, Neil Simpson (Brewdog plc); Mark McCue (IoD Aberdeen); Professor Ferdinand von Prondzynski (Robert Grodon University). Front row, from left, David Watt (IoD Scotland); Jennifer Young (Ledingham Chalmers LLP); Oonagh Werngren (Oil & Gas UK) and Alison Sellar (Activpayroll). 32 | WINTER 2015
TECH MATTERS
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Jubilee presents a 21st century picture of healthcare by Bill Magee Tech Writer
High-quality healthcare is so vital to each and everyone of us whether at work or leisure pursuits. It is also inextricably linked to a high performing Scottish economy. In fact, to any economy on the planet. With these objectives very much in mind, check out a new Quality Framework digital platform devised by the Golden Jubilee National Hospital, where fullyinteractive virtual dashboards are driving up quality control and improving patient care. The Jubilee is taking digital analytics to a new level and it’s not surprising to learn that it has already attracted enquiries from as far afield at the States and China. The hospital’s work is fast becoming a model for adoption by healthcare facilities, and other organisations, around the world. Digital analytics are increasingly being harnessed by ambitious organisations looking to gain valuable insights into their data streams and make smarter decisions while achieving a better return-oninvestment. Nowadays, the business of analytics is light years away from mere spreadsheets, graphs and charts, especially now with the advent of the cloud and virtualisation. They offer the potential for a more seamless, scalable and flexible online answer and in Jubilee’s case, its enterprise analytics solution is enabling a staff of several hundred, including directors, clinicians, doctors, consultants, nurses, and administrative staff to easily analyse patient care, staffing, and performance targets. They can also identify underlying and previously unknown patterns and interactions between patients and the hospital, representing the more unexpected and harder-to-predict factors that life can throw up at an organisation. Chief Executive Jill Young told the Holyrood 6th Cloud Computing conference, which I chaired, how the 34 | WINTER 2015
hospital’s vision has now turned into a reality as she highlighted an organisation that believes in continuous improvement in quality, research and innovation in healthcare. In detail, the Jubilee is now better able to understand and react appropriately to ensure that patients have a safer, high quality experience within the hospital. Any member of the Jubilee team – from nurse, clinician, doctor and manager – can easily see at a glance and in near real time, trends, correlation or impacts of multiple indicators, such as sickness, training and infection rates. It also highlights areas for improvement in quality of care and patient outcomes. Regularly updated graphics on hospital performance, in such vital areas including patient care plus cleanliness and efficiencies, are installed in public areas and are readily accessible, giving updates on how the hospital is meetings its targets. Accessed at a touch of a button with potential to view an individual ward, hospital, board or across NHS Scotland, three key programmes of governance,
quality indicators and a values-based workforce are matched by key indicators in quality, safety, performance and patient experience. A digital platform provided the IT solution and patients also worked with the hospital to establish the framework – what Jill described as a journey with “many twists and turns” so the enterprise analytics chosen had to be one “that fitted the Jubilee’s complex needs and will evolve with us.” Board committees review employee performance and make decisions improving management and effectiveness while hospital administrators can drill into the top 30-40 quality indicators in great detail, making informed decisions to enhance the patient experience while being looked after at the hospital. It is easy to see how the Jubilee’s Quality Framework with app is fast becoming a model for the entire NHS and beyond. n Catch my Daily TechPost (most days!) on Twitter #billamagee and regular tech microblog at www.Kiltr.com/
“Its enterprise analytics solution is enabling a staff of several hundred, including directors, clinicians, doctors, consultants, nurses and administrative staff, to easily analyse patient care, staffing, and performance targets...”