Direction

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Direction

www.iod.com

WINTER 2017

EVENTS • DIRECTOR DEVELOPMENT • ADVICE AND INFORMATION • NEWS

The official membership magazine of the Institute of Directors in Scotland

It’s our job to open doors for Scotland’s youths EY Foundation’s Margaret Gibson on how directors can help boost the employability of our disadvantaged youngsters

IoD Director of the Year Awards: Last chance to nominate - see pg 4 Conference report n IoD Events Diary n Technical briefings n Behind the Desk n Member benefits



Greater power doesn’t have to mean greater control Executive comment: The current debate over Scotland’s budget masks a bigger question as to the role Government plays and how it spends its finite resources in the future, says IoD Scotland Chair Susan Deacon cbe

In the words of celebrated US Supreme court judge Oliver Wendell Holmes, “I like to pay taxes. With them, I buy civilisation.” But civilisation comes at a price. So with discussions around the Scottish budget in full swing, the great debate about higher taxes or the status quo has begun – and with Holyrood’s increased tax-raising powers, it is set to continue. However, this debate around tax, while welcome, is not enough. Where Scottish Government funding comes from is changing, and the pattern of Scottish public spending is evolving fast. According to the recent Scottish Government discussion paper on income tax, the block grant from Westminster, when all the powers from the Scotland Act 2016 are devolved, will make up 50 per cent of the Holyrood budget. That figure is a far cry from the days when the grant covered just about everything, and the budget was set by the UK Government based on spending decisions for the rest of the UK which Holyrood could then decide how to allocate. In the next financial year around 30 per cent of the Scottish budget will come from income tax, with a further 7 per cent from other taxes controlled by Holyrood such as non-domestic rates, the Landfill tax, Land and Buildings Transaction tax, Air Departure tax and the Aggregates levy. When the Scotland Act 2016 powers are enacted, a further 15 per cent of revenues will be based on VAT receipts raised in Scotland. Alongside this, while Scotland continues to enjoy higher public spending levels than the UK average, what the money is spent on has changed significantly. That changing pattern was illustrated in the recent Audit Scotland report on NHS Scotland. The service, it said, has a budget of around £13 billion each year, equivalent to 43 per cent of the overall Scottish budget – an increase from 38 per cent in 2008/09. Over the next decade it is expected to rise by ten per cent. This at a time when public spending will continue

to be squeezed and the population is getting older. According to analysis by the Fraser of Allander Institute at the University of Strathclyde, as health spending rises, real spending per capita on services other than health is expected to be 20 per cent lower in four years time than it was a decade earlier. So, as the Scottish Parliament becomes more powerful, with new powers over taxation and public spending, and with further Brexit powers on the horizon, there is both a need and an opportunity to take a long, hard look at how the public purse in Scotland is managed. We need to move away from simply focusing on incremental change on an annual basis and to ask a wider question: if public money is to be properly measured, treasured and used, are we spending it on the right things, in the right way and in the right places? Data and evidence matters and should be the basis of sound public policy and investment decisions. Have we got the balance right between consumption and investment, are there things the Government isn’t doing that it should – or even doing that it shouldn’t? These are just a couple of the questions we need to ponder. Above all, this debate must not get stuck in the hackneyed false dichotomy of ‘business v public sector’. The fact is, to be strong and successful our economy and our communities need a healthy private and public sector and they need to work in tandem towards shared strategic aims. There is an opportunity now to develop a more mature and informed debate about the future of public spending in Scotland. It is one in which we should all take an interest. In the words of Professor Graeme Roy, director of the Fraser of Allander Institute, “an open and transparent debate is needed about the sustainability – and options for reform – of Scotland’s devolved budget. Continuing as before is not an option if Scotland’s devolved budget is to be sustainable in the long term.” These are wise words.

“Have we got the balance right between consumption and investment, are there things the Government isn’t doing that it should – or even doing that it shouldn’t? ” WWW.IOD.COM

IoD Scotland & Direction IoD Executive Director: David Watt For email enquiries: iod.scotland@iod.com W: www.iod.com Address: 10 Charlotte Square, Edinburgh EH2 4DR T: 0131 557 5488 Direction is the official membership magazine of the Institute of Directors Scotland and is published on its behalf by: Chamber Media Services, 4 Hilton Road, Bramhall, Stockport, Cheshire SK7 3AG Advertising sales: Colin Regan Tel: 07871 444922 / 01942 537959 Email: colinregan001@ yahoo.co.uk Production: Rob Beswick Tel: 0161 426 7957 / 07964 375216 Email: rob@chamber mediaservices.co.uk Editorial: Please send press releases or editorial for consideration for future issues of Direction to: Lisa Donnelly Email: lisa@clark communications.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: Margaret Gibson, the subject of our main interview on pg 14-15. Photo: Susie Lowe

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Executive Comment

Scotland’s future must be global Executive comment: A hugely successful Scottish International Week offered just a flavour of the enthusiasm our businesses are showing for overseas trade – but the key is to now channel that energy and interest into action, says David Watt, Executive Director of IoD Scotland. In October, we held a phenomenally successful Scottish International Week here at Charlotte Square. The IoD Scotland hub was packed with people who are taking the first steps into the worldwide market, or those already operating internationally who wish to increase their activity overseas. That the event was such a draw underlines that there are many businesses wanting to take their business beyond our shores, but also that there are many unsure of how to go about it. In Scotland, fewer than 10 per cent of businesses currently export. To move this country’s economy forward, we must build on that number by increasing our tourism income and our manufacturing exporting. We need to focus on developing new technologies and boosting our financial services sector. Scotland is doing fantastically well in growing our international offering in food and drink, and this will continue. But other sectors should be getting on board the global train, too – all businesses should be searching for

international opportunities and turning them into successful ventures Our discussions during the week, from speakers and guests, investigated ways in which we can break this poor track record and change the mind-set of companies to go international from day one and to seek new markets – even if they have been in business for a while. From big corporate companies to start-ups, the future is global, so it is important that we directors have this mindset from day one – right up to a stock market listing or sale. Speakers were full of advice – including encouraging us all to ask for, and take, advice from those who have already branched out overseas. Having access to a network of peers who can offer lessons they have learned is vital, and it is a large part of what the IoD is here to deliver to members. In boardrooms across the country, internationalisation must be on the agenda. For strategic growth, all businesses need to think global, because that’s where the market

lies, and importantly, where the competition is. Scotland is a small country at the geographical periphery of Europe and international trade is our lifeblood – our heritage and our future. We have to internationalise like never before to ensure that Brexit does not leave us marooned in the North Sea. With this uncertainty at home, many more businesses are now looking to established overseas markets as part of their growth plans. It can be complex but ultimately rewarding. The key message of Scottish International Week was ‘Just do it!’ – and so, to a nation famed for entrepreneurs, visionaries, innovators, experimenters and travellers – let’s do just that. • IoD Scotland will be hosting another International Week in October 2018. See future issues of Direction and the IoD website for further details

Is this YOUR year...? Last chance to enter IoD Scotland Director of the Year Awards The IoD Scotland Director of the Year Awards celebrate individuals’ business achievements in 2017. We want to hear about your successes. But you’ll have to be quick as the final date for entries is Monday, December 11. New for this year is the Family Business Director Award. Sponsored by Turcan Connell, it is open to individuals in second-generation or more family businesses who have responded to the specific challenges that face directors in such well-established family firms and who have contributed to the success of the diverse, dynamic and innovative family business sector. Candidates can be nominated for one or more of the Director categories using the same form and can also be put forward for a Regional Award:

n Public Sector Director n Third Sector Director n Workplace Innovation Director n Family Business Director – new this year

Why enter? • Raise your personal profile – and that of your business / organisation • Benchmark your leadership against that of

your peers • Simple, no-nonsense nomination process • Nominations are open to all at director level or equivalent, whether you are an IoD member or not • The Awards are free to enter and the process is streamlined • You can enter as many categories as you wish in Phase 1 with just one nomination form • We provide examples of completed forms, so you can see the kind of thing we’re after • All short-listed finalists receive feedback from the judging panel • Consider nominating a colleague or a client • Register your interest to attend the Awards Ceremony For more details contact: Joyce or Alice on 01577 865498 E: awards@firstcityevents.co.uk

Awards supporters

Award Categories n IoD Scotland Director of the Year n Non-Executive Director n Emerging Director

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Iconic Gleneagles brand on its way Edinburgh and London Ennismore, the owner of Gleneagles, has announced that it will open a club in the former Bank of Scotland building in St Andrew Square, Edinburgh. The news came hot on the heels of announcement that the company, which acquired the five-red-AA-star, 232-bedroom Gleneagles in 2015 for around £200m, has applied for planning permission to open a club in the heart of London’s Mayfair. The announcements mark the first ‘brand extension’ for Gleneagles beyond the iconic sporting estate in Auchterarder, Perthshire. Ennismore intends to launch the Gleneagles London outpost club, offering “the traditions and glamour of country life” within a Grade I-listed building, designed by Sir Robert Taylor in 1772, on Grafton Street in the heart of the capital. The Edinburgh acquisition of Gleneagles will be located in a Grade A, former Bank of Scotland flagship branch on St Andrew Square. It will offer bars, lounges, restaurants, some bedrooms, retail and events spaces which will “celebrate the traditions and glamour of country life”. Sharan Pasricha, founder and chief executive of Ennismore, described the acquisition as “an exciting time” for Gleneagles as the company

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Murrayfield goal to be soccer’s new home Gleneagles in Edinburgh, St Andrew Square looks to expand the brand “through the development of another iconic building in a key Scottish city”. He added: “We will be working with the relevant local authorities, residents and stakeholders as we shape our plans but we intend to invest a considerable sum to bring this building back to life whilst, like Gleneagles, respecting its incredible history and original features.” The St Andrews Square building was originally developed on behalf of the British Linen Bank in 1846. It is located within the New Town Conservation Area and is part of the Edinburgh World Heritage Site.

The Scottish Rugby Union (SRU) expects to hear by the end of the year if BT Murrayfield will replace Hampden Park as the national stadium of football in Scotland. The Scottish FA’s lease at Hampden expires in 2020 and it is looking at other options. “We are mindful that fans pay a lot of money to sometimes see their team lose, so we feel it is important to put on a good experience beyond the game itself,” said Dominic McKay, SRU chief operating officer. “We believe this is quite a big commercial opportunity for the SFA to drive more money into football.” Not everyone is optimistic about the potential move, however. “If they don’t stay, it will not be good news for Queen’s Park,” said Alan Hutchison, president of Queen’s Park, the football club which owns Hampden Park. “If Queen’s Park did not have the income Hampden brings, then [we] would not be able to operate our youth and community programmes.” A final decision is expected by the end of the year.

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Members’ News

Marie completes superb year with more award titles Marie Macklin CBE, owner and Executive Chair of Macklin Enterprise Partnerships, has been named Business Woman of the Year by the Business Women Scotland (BWS) and Women’s Enterprise Scotland’s (WES) Business Awards. The award follows on from her IoD Scotland Non-Executive Director of the Year accolade, presented to her at the IoD’s awards in March of this year. On receiving the most recent award, Marie said: “It is fantastic to be recognised as Business Woman of the Year by an organisation that I truly value and support. “I am passionate about supporting entrepreneurs but even more so about encouraging women to take on leading roles within business as that will truly help to grow Scotland’s economy. I hope that my achievements encourage other female entrepreneurs to be ambitious and dream big.” Before establishing Macklin Enterprise Partnerships in 2015, she overhauled Kilmarnock-based Klin Group, a construction business founded by her father, into a property development company specialising in economic and social transformation. After acquiring Klin Group in 2003, she was the first developer to locate a Morrisons supermarket in Scotland as part of an £85m regeneration development.

New house sales have risen for McTaggart and Mickel, says group chief executive Ed Monaghan (inset)

McTaggart and Mickel Group is building on success McTaggart and Mickel Group has reported that turnover and profits were both up at the Glasgow-based housebuilder, with profit before tax up 22% to £12.7 million, and turnover increasing by 14 per cent to £74.3m for the year to 30 April 2017. The firm’s flagship homes division sold 167 homes and saw its average house sale value climb to £351,000 (due to the development sales mix and targeting of high-quality locations). Two new developments were launched in Scotland this year: Red Lion in Newton Mearns and Millerhill at Shawfair in Midlothian. Earlier this year, McTaggart and Mickel won the highly acclaimed Queen’s Award for

Enterprise for its work on the Glasgow Commonwealth Games Athletes’ Village. Chief Executive Ed Monaghan said: “These results show that we have delivered an excellent financial performance, continued to grow the business and increased profits and turnover. This has been achieved against a backdrop of investment in the development of our employees and continually improving and evolving the business “Winning the Queen’s Award this year was an enormous achievement for the whole team. I’m equally proud that we continue to be recognised for the top-quality build projects that we deliver. Ultimately, client satisfaction drives our success”

Live Music picks up the business beat

Punctuality boost for ScotRail

Is your business in tune with its surrounding communities? If you need help, perhaps Live Music Now (LMN) could help. Founded by the legendary violinist Yehudi Menuhin and his friend Ian Stoutzker CBE, LMN delivers over 750 live music performances throughout Scotland every year, auditioning young, professional musicians who combine exceptional performing skills with special qualities of communication, insight and generosity. Their skills are enhanced through training workshops, and performing live music concerts within their communities. Live Music Now is keen to engage with businesses throughout Scotland that are interested in music as part of their corporate social engagement activities. Contact: scotland@livemusicnow.org

ScotRail recorded its best performance on punctuality since May 2015 in the four weeks to September 16. Public Performance Measurement (PPM) was 94.1 per cent, the best since the month after Abellio took over operation of ScotRail. This takes the operator’s Moving Annual Average (the average performance over the past 12 months) to 91.21 per cent, which meets the regulatory target. ScotRail has also announced that the first testing of the new Class 385 electric trains was a success, with the first test on the track between Edinburgh and Linlithgow. Following further tests, the new trains will enter service, and will provide a quicker, quieter, more comfortable journey between Glasgow and Edinburgh.

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Members’ News

EY reports strong growth as it targets gender balance EY has reported that business in Scotland has seen growth of 11 per cent in the financial year ending 30th June, 2017. The firm’s Scottish practice, which recently took the Investor in Scotland award at the Scottish Business Awards, has increased headcount and recorded more new starts and promotions than the previous financial year. EY has also highligthed that the gender diversity of the leadership team is at its highest on record. Overall, 31 per cent of the partnership in Scotland is female with three key areas led by women: Head of Tax, Head of Financial Services and the leader of the Global Mobility department are all positions held by women. The firm has taken on seven new partners, three female and four male, since 2016. Mark Harvey, EY Senior Partner, Scotland, said “In November we will open the doors to our new, state-of-the-art office in Edinburgh giving us a 26 per cent increase in floor space to grow our team in Scotland. “This move demonstrates our continued investment in Scotland and our confidence in the thriving business community here.”

Keep us in the loop! We have multiple ways through which we can feature members’ stories on the IoD website, social media channels and right here in Direction magazine. So, let us know what your company has been up to – whether it’s a story about your business performance, a new product, growth, special project or an exciting announcement, we want to hear! Please add lisa@ clarkcommunications.co.uk to your news distribution list (or ask your PR manager / company to do the same) for any press releases, or send newsworthy nuggets directly to the same address. We also love pictures – if you have good print quality photography to go alongside your story, please send that, too.

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Fans celebrate with champion golfer Jordan Spieth at the 2017 Championship, at Royal Birkdale

Fans warned to be vigilant over 147th Open ticket scams The R&A is taking steps to protect golf fans from the miss-selling of tickets and hospitality products by unofficial operators when The 147th Open is played at Carnoustie next year. The Open will return to the Angus links for the first time since 2007 and fans are being reminded to remain vigilant to unsolicited approaches by unofficial operators which often target individuals and local businesses with offers of discounted rates due to cancellation. Fans are often left disappointed when they discover that they have purchased tickets with no guarantee of entry and on-course hospitality that transpires to be several miles from the course. They are advised to check with The Open Hospitality team before making a purchase to ensure they are bona fide resellers of official hospitality and tickets are purchased from TheOpen. com. Johnnie Cole-Hamilton, Executive Director – Championships at The R&A, said: “It is an absolute priority for us to protect our customers from rogue hospitality operators and the mis-selling of tickets. We will be working with the local authorities including Angus Council to ensure that fraud prevention measures are in place and that local businesses are made aware so that they don’t fall victim to mis-selling practices. “The no readmission policy introduced at Royal Birkdale last year also proved an effective deterrent to these unofficial operators and was well

received by more than 235,000 spectators who attended the Championship.” The guidance for fans is as follows: • Fans are advised to purchase tickets and hospitality through The Open’s official channels to avoid disappointment. Spectators risk being denied entry to the course if they are using a ticket purchased on their behalf by an unofficial supplier or third-party reseller. • The R&A has reviewed and updated the admissions policy for The Open and fans will not be permitted to re-enter the venue after leaving Carnoustie. • Official hospitality packages sold by The Open hospitality team and verified third party agents are the only on-course hospitality experiences at Carnoustie. • By purchasing tickets and hospitality from official sources, golf fans are contributing to the future success of the sport through golf development programmes in the UK and around the world. To purchase tickets, visit www.TheOpen.com/ Tickets, or for official hospitality packages, please contact The Open hospitality team on +44 (0) 844 371 0883, email Hospitality@ TheOpen.com or visit www.TheOpen. com/Hospitality for further information.

Left, the 2017 Open Champion Jordan Spieth with the Old Claret Jug WWW.IOD.COM


Downtime

Eating out.... A strictly informal guide to the best places to wine and dine...

Great grub in the Granite City

On the lookout for an interesting business lunch venue in Aberdeen? Alison Ellis headed across the road from her office to check out the Malmaison Brasserie. Set in a grand granite hotel among some of Aberdeen’s top firms, the Malmaison is ideally situated in the centre of the city, with ample parking available and menu that boast a fantastic selection of the highest quality dishes. Although it belongs to a large hotel group, the brasserie has a distinctly Aberdonian appeal with pictures of Aberdeen Angus adorning the walls and prime cuts hanging in the state-of the-art display fridge. Seating is mixed, with secluded booths and relaxed groupings of comfy seats available, as well as a three private dining rooms that can seat 10, 12 or 30. Having been greeted and seated by the attentive waiting staff, we were treated to the Cote de Boeuf served with bone marrow and both peppercorn and house BBQ sauce on the side. The steak was 450 grams of meaty

goodness cooked to perfection. The accompaniments were delicious; we particularly enjoyed the smoky BBQ Sauce. For those of a less carnivorous persuasion there is still plenty of Malmaison Brasserie: Simple but stylish decor choice. The menu at the time of our visit featured a selection of The moreish macaroni with the aroma of truffle seasonal dishes, and alongside the a la carte is a step up from the pub lunch favourite, and menu, provides delicious choices for all palettes. will leave you wanting to lick the plate. One veggie option available is the mushroom & From light snacks to indulgent three coursers, black truffle macaroni, made with a gruyère & the Malmaison Brasserie is a brilliant option for parmesan cheese sauce and brioche herb crumb. meeting and eating. Attentive but not overbearing staff are enthusiastic about the The damage... was it worth it? menu they serve, and the chef talent is x n Break the bank undoubtable – a big thumbs up from Korero 4 Push the boat out n and our clients - highly recommend! x Standard fayre n x Cheap as chips n

Make a date with...?

Guest reviewer:

Clients, or warm prospects.

Where?

Malmaison Brasserie, 49-53 Queens Road, Aberdeen AB15 4YP T: 0330 016 0380

Alison Ellis is director of Korero, a PR and marketing agency which works with clients in Aberdeen, London and Oslo.

What is Bitcoin

(and why should you care)? Over 100,000 merchants, including PayPal, Microsoft and Dell, accept the digital currency known as Bitcoin, which has increased in value by over 4,000% in the last four years. Now do we have your attention? Bitcoin was introduced by a mysterious person or organisation in 2009 as a digital alternative to traditional currency. It is decentralised, meaning it is not managed by a central repository or administrator. In 2013, one bitcoin was barely worth a pound. Now, a single bitcoin is worth over £4,500. Aside from the fortunate few who invested

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early, what good is bitcoin to the rest of us? According to Cambridge University, anywhere from 3 to 6 million individuals use bitcoin as of 2017, and its popularity is only increasing among consumers. “If bitcoin ends up being the cyber equivalent of gold, it has a great potential left,” said renowned Silicon Valley investor Peter Thiel. “People are . . . underestimating bitcoin.” That doesn’t mean everyone should swap all their cash for bitcoin, however. Thiel continues, “You don’t need to use it to make payments.” In other words, keep your eyes on bitcoin – but keep your money in the bank.

End of the road for sat navs? John Lewis has announced the removal of dedicated sat navs from its store shelves, as the product’s sales have reportedly hit a dead end. “Customers are now solely using their mobile phones, with apps such as Google Maps or Waze automatically updating themselves with the latest directions, or relying on their in-built car sat nav for navigation,” said Suddy Bhardwaj, buyer of mobile, photo and wearables at John Lewis. Sat navs will still be available through John Lewis’s website, confirmed Bhardwaj, as some customers continue to request the dedicated units. As smartphones continue to play an increasingly prominent role in modern life, however, it is unclear how long the demand will last. The announcement followed the release of the retailer’s 2017 annual report, which listed sat navs as the number one “left behind” item of the year. Other items on the list of rejects include analogue radios, e-readers... and the push-up bra!

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Charity appeal

Let’s inspire local pupils to increase their employability and help close the skills gap Today, there are one million job vacancies in the UK which employers are unable to fill, partly due to a lack skills among the workforce. At the same time, almost a million young people are currently not in employment, education or training. In a rapidly changing world, CBI cites a lack of skills as the number one barrier to UK economic growth. Research from the Social Market Foundation & EDF (2017) shows that 640,000 jobs in science, technology, engineering and maths (STEM) will need to be filled in the next six years. As many as 65 per cent of these jobs haven’t been invented yet according to research shared by RAND Europe. The Open University reports (Telegraph, 2 July) that skills shortages are costing UK businesses £2bn a year. That is one indication of the cost of the huge, economy-damaging shortage in candidates for jobs in areas such as technology, science and data. This year, fewer than one per cent of school students took a higher level qualifications in computing and only 15 per cent studied a STEM subject. A further concern is the uneven playing field in acquiring STEM skills regionally, which expands socio-economic differences in society and the lack of appeal of these subjects to girls. ASPIRES research highlights that STEM engagement falls in young women from 72 per cent at age 10 to just 19 per cent at age 18. Founders4Schools (F4S) is an awardwinning charity working in partnership with Scottish Government and the DYW programme to tackle this issue head-on, to increase youth employability and close the skills gap by connecting young people with business leaders. They do this through a range of studentemployer encounters including career talks,

speed mentoring, workplace visits and work experience. Research by the Education & Employers Taskforce (2017) proves that pupils with four encounters with employers are 86 per cent less likely to become a NEET (not in employment, education or training) and earn 18 per cent more. As a member of the Institute of Directors you are a business leader and an inspiration to the next generation. You can increase the employability of pupils at a local school by simply sharing your story and highlighting how it connects with the school curriculum or by

hosting work experience activities. We encourage you to sign up to Founders4Schools. Once done, local educators will be able to ask you to inspire their pupils at a key points in their education journey, by participating in events such as a career talks, employability events. Make a decision today - to say ‘Yes, I can help.’

Want to know more?

See www.founders4schools.org.uk/ Follow us on Twitter @founders4school Join the conversation on Linkedin/founders4schools

“This year, fewer than one per cent of school students took a higher level qualifications in computing .... and only 15 per cent studied a STEM subject...”

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Behind the Desk

Finding out what makes leaders tick

Alex Hynes: Delivering change in the complex world of the rail industry Name: Position: Company: Number of employees:

Alex Hynes Managing Director ScotRail Alliance 7,500

What’s the organisation about? The ScotRail Alliance is a partnership between Abellio ScotRail and Network Rail Scotland. Career history 2013 - 2017: Managing Director, Northern Rail 2012 – 2013: Managing Director – Rail Development, The Go-Ahead Group 2007 – 2011: Commercial Director, London Midland 2005 – 2007: Strategic Planning Manager – Rail, The Go-Ahead Group 2004 – 2005: Policy Unit Manager, Office of Rail Regulation 1. What is the greatest recurring challenge you come across in your role, and what’s your strategy for dealing with it?

Creating momentum is the biggest challenge. My strategy for dealing with this is relentless communication, to ensure that people understand what we are trying to do, how we are going to do it and their role in making that happen.

my organisation. Delivering change is ultimately a good thing, but it can mean a lot of difficult decisions along the way.

2. Who, or what, drives you or inspires you?

5. What makes a good leader great?

Achieving results drives me. But I also like to make a tangible difference to people’s lives. Being able to run a railway service for a country is very rewarding, and allows me to make that difference.

Hiring great people, inspiring them and then letting them get on with it. That last part is important.

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

Yes. He taught me that you should take charge of your own career, and produce a plan.

To be regarded as a great railway, and a company that does good for Scotland’s people and its economy.

4. What keeps you awake at night?

Making difficult decisions about people in

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

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

Delivering big change in an industry that is very complex and highly regulated.

‘My strategy for creating momentum is relentless communication, to ensure that people understand what we are trying to do, how we are going to do it, and their role in making that happen’

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

Achieving gender balance. The rail industry’s track record on gender balance has historically been poor, but we have an opportunity to really transform things in the coming years.

9. What piece of technology do you rely on most?

iPhone. It contains my emails, diary and Twitter, which are all key to the smooth running of my day.

10. What is your favourite social media platform, and what does it bring to your business/organisation?

Twitter. You can continually listen, engage and act on what your customers are saying.

11. What needs fixing?

We need to get Abellio ScotRail back into the black.

12. What leadership advice would you give your younger self? Learn to listen to your gut instinct.

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In profile: Margaret Gibson OBE

Margaret Gibson OBE, Scotland Hub Leader and Head of Social Enterprise Services at the EY Foundation, tells Rob Beswick about how she hopes to raise the aspirations of young people from disadvantaged communities

It’s got to be opportunities for all We all want to see Scotland become a economically successful, flourishing and equitable society, and Margaret Gibson OBE has her view on one way this can be achieved – by making the most of all the skills and talents available to it, at every age, and from every community. Twenty years at the Prince’s Scottish Youth Business Trust (PSYBT) had opened Margaret’s eyes to the possibilities available if young people could only find the right guidance and financial support they needed to set up their own businesses, while three years at Women’s Enterprise Scotland had seen her break down more barriers to success as she helped female entrepreneurs establish their own businesses. But while she found that role immensely rewarding, her work at PSYBT had made her realise her real passion lay in helping the country’s youth lift their horizons and take the opportunities that exist for them. So when EY – that’s Ernst & Young in old money, in case you’re wondering – offered her the chance to lead the EY Foundation in Scotland, a new initiative spun out from its CSR programme, she jumped at the chance. “I loved working at PSYBT,” Margaret recalls. “It was great helping young people set up their own businesses. They have such a thirst for knowledge, ambition and an energy that’s exciting. The challenge is to make sure all those qualities, that passion, find an outlet in the workplace and that every young person finds the role they deserve.”

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As Margaret explained, the EY Foundation works to offer opportunities to young people who may find few, if any, open to them after school or college. “The EY Foundation is a pioneering model that brings together the professional rigour and resources of a large corporate with the innovation and dynamism of a start-up charity. We look to inspire and support young people from more vulnerable backgrounds to fulfil their work potential. “We work with employers and other key collaborators to reduce the barriers to work that exist and enhance their employability.” Most of the Foundation’s ‘clients’ come from economically challenged backgrounds, Margaret said. “Too many young people from our most deprived estates leave school and college thinking there’s nothing for them,” she said. “They may come from an area where the majority of people used to work for a big employer – the shipyards, for example – but as they have closed or scaled back on manpower, those young people might live in a home where no one has worked for years. They have no positive work-related role models to look up to

“Too many young people from our most deprived estates leave school and college thinking there’s nothing for them...”

and they just assume that there will be no working life for them. But that’s wrong; they’ve got so much they can contribute. It’s up to us all to give them a chance.” And that’s where Margaret and the EY Foundation comes in. Its focus at the moment is on those aged 16 – 19 who have a range of barriers to overcome when attempting to make the switch from statutory education to either further education, employment or selfemployment. The message is clear: in a future, progressive Scotland, no-one can be left behind. “The young people we work with in the Glasgow, Dunfermline, Fife and Edinburgh often don’t have access to networks and positive role models; they need help understanding the world of work and in gaining work experience but don’t have anyone to turn to to provide it. If the older people around you don’t work, how do you arrange work experience? How do you learn about the jobs that may be available to you?” A specially designed training programme fills in some of those gaps, offering guidance and mentoring as well as practical help that will improve employability. “We work alongside other charities like PEEK, Achieve and More, and Radiant and Brighter – and others from a social services, schools – to identify young people who need that little bit more help before they can enter the workplace. Often they are academically bright but aren’t getting a chance to prove it.” Through the EY Foundation programme WWW.IOD.COM


volunteers – often from EY – deliver training on everything from writing CVs and interview technique, as well as advice on the work options available. There is also proper paid work experience – this could be at EY, or one of the other employers we partner with. They are paid a competitive wage while attending and come out three weeks later with a recognised Chartered Management Institute qualification in team leading. “The course is about giving the young people some real work experience and practical advice that they can build on, whichever career choice they follow,” added Margaret. Indeed, it could be argued that the most valuable thing participants gain is something that’s virtually unmeasurable: confidence. “I was chatting to one programme leader and they highlighted how the young people change when they are with them. They arrive quite shy and hesitant. It’s rare they attend the programme with anyone they know, so they have to start to get to know other people, work out how to get along together. That’s how life is in the workplace but for the young people who pass through the EY Foundation, it’s often a new experience.” One of the key benefits for Margaret is helping participants develop their emotional intelligence. “We teach practical skills on the course but attitude is so much more important. They learn how to act in the workplace, developing their confidence as they go. It’s inspiring to see the changes that come over them.” At the heart of the strategy is giving everyone a chance to shine. “I’m often reminded of a quote – it’s not mine but I’ll happily use it – that ‘Talent is universal but opportunity is not.’ It’s so true and it’s something we must change so everyone gets a chance.” But does Margaret feel that the EY Foundation is fulfilling a task that’s really the job of the education system? That’s a criticism of schools she feels is unfair. “It’s too easy to hit schools. Many of them are doing well – some parts of the new Curriculum for Excellence are really good. But to tackle this problem we need a communal approach: the schools, community groups, employers and programmes like those that the EY Foundation run. We all have a job to do to work with all our young people.” One area where Margaret believes society as a whole is taking an encouraging turn is a growing understanding of the value of modern apprenticeship schemes. “Apprentices are definitely back and people are seeing their value,” she said. “We lost this. Not everyone is right for university or college.” She highlights a member of her own family who took an apprenticeship after leaving school as it fitted better and has gone on to make his career a great success. His story should be used to make young people aware of the opportunities that exist for them after school “we need our young people to sit down and listen to the stories of others who have made a success of their lives. But I’m not just talking about very successful business leaders… what’s wrong with an electrician or builder coming into school, explaining how he/she took the path that led to them learning a trade, and how WWW.IOD.COM

Margaret with members of YES Works. Based at Rouken Glen Park in Glasgow it provides horticultural services and is one of the social enterprise currently working with the EY Foundation. It is managed by Colin Higgins, (left); also pictured are two of the apprentices. they’ve made it a success?” The EY Foundation is also tackling this issue from another direction in its work with social entrepreneurs. “We help social enterprise businesses develop and grow. We match them with volunteer mentors, who offer advice and support drawn from their own business experience. “As part of the programme we run workshops in which social enterprise owners can deepen their knowledge on business issues. We run courses on business strategy, on branding, better governance and how to work with trustees.” This programme fits well with the EY Foundation’s other work, as social enterprises are often the types of business more likely to offer a job opportunity to a young person struggling to break into the workplace elsewhere. So far, EY Foundation is making great strides – having supported over 1,000 young people across the UK this year but there’s more work needed, and that’s where IoD members can help. “I’d love to be able to work with more employers in Scotland, “ she said, “and we can

“I’m often reminded of a quote – it’s not mine but I’ll happily use it – that ‘Talent is universal but opportunity is not.’ It’s so true.”

do it in a number of ways. “We can run a course tailored to your employment needs, where young people are given an insight into your business. This could give you a chance to tap into a pool of labour your traditional recruitment drives miss. Alternatively, we’re always looking for employers to open their doors to us so we can showcase post-16 possibilities to our young people, explain what different jobs entail and have employees explain their stories. We have had the owner of a distribution business come to talk about his business, a clothing manufacturer explaining the various roles involved and a digital design agency demonstrating the skills required in this sector. “Another option is for directors to volunteer a couple of hours of their time to go into schools directly. We run half-day workshops in which we take young people through different careers and you can help explain what is needed to get into those roles.” But above all, her plea is for employers not to dismiss applicants because they don’t come from their traditional recruitment zones. “What’s needed is for employers to recognise that all young people deserve a chance. Our employability courses make young people more ‘job ready’, and prepare employers to host those young people in their business. “Do you know what’s really sad: many young people don’t apply for jobs because they think they won’t be wanted and have no chance. They lack confidence in their ability. We’re trying to change that at the EY Foundation.”

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Technical briefing: Fire safety

Business owners carry responsibility for thorough fire risk assessments Fatal fire are, thankfully, rare, but this summer’s dreadful Grenfell Tower tragedy has reminded many of the dangers and risks that fire brings. Here Jim Mann MIoD and Dr Eric W. Marchant look at the crucial role a Fire Risk Assessment plays in keeping everyone safe in the workplace There are two important questions that may still be in the minds of the owners and managers of buildings for industry, commerce and some parts of some domestic buildings They are first, what is a Fire Risk Assessment? and second, why is it important? Fire risk assessment is a process that requires a review of the fire safety hazards and the fire safety systems in a building that is occupied and in use. The culmination of this process is a document – the Fire Risk Assessment. This is a ’live’ document as a review of its contents is expected annually and any changes documented, whether or not they increase a hazard or increase the level of fire safety. It is important as the production of a Fire Risk Assessment is a legal requirement placed upon the owner or manager of a building. The legislation In 1971 some of the then current regulations about fire safety were brought together into the Fire Precautions Act 1971. This Act was supported by several handy documents that were published by Government and included basic guidance for some types of building. The Act was administered by the local fire authority – the Fire Brigade. The fire prevention officer would have given the owner or manager advice on how to meet the requirements of the Act. When the fire safety systems matched the fire hazards a Fire Certificate would be issued by the fire authority. Inspections of the building would be made by the fire prevention officer. In the years after 1971 there was an increasing recognition that the 1971 Act did not apply to many types of building and the mound of legislation was getting higher. It was agreed by business and the Government that the burden of legislation needed to be reduced. Fire Safety for buildings-in-use seemed to be a good starting point especially as the fragmentation of the legislation was generating more regulations. The big shift In 2005, The Regulatory Reform (Fire Safety) Order appeared and it applied to all nondomestic buildings in England and Wales. In the same year (2005) The Fire (Scotland) Act was placed on the Statute Book – amended by Regulations in 2006. These documents contained some major changes to the regime that

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had obtained under the Fire Precautions Act of 1971. The requirements of the law were written in broad terms and the penalties for non-compliance were more focused. The responsibility for complying with the law passed to the owner or manager of the particular building. The principal means of showing compliance with the fire safety law became the matching of the technical content of the Order or Act with the outcome of the current Fire Risk Assessment with no guidance or advice from the local fire prevention officer (latterly the fire safety officer and/or a community fire safety officer). The Fire Authority appoints auditors who visit a building, by appointment, and assess the existing fire hazard against the fire safety systems in the building. Any inadequacy may result in an advisory letter or, in an extreme situation, a Prohibition Notice stopping the activity in the building immediately. The required expertise for both the assessment and for the specification of any necessary remedial works may not be available ‘in-house’. If the ‘in-house’ expertise is lacking or nonexistent, where should the owner or manager look? There are several organisations that have lists of people who they expect to have the competence to carry out a fire risk assessment and to produce the necessary report. After completion the document should be kept safely and easily accessible. An audit officer from the Fire Authority can ask to see the document and advise accordingly. Although the audit officer would describe the deficiencies found in the building it is the duty of the owner of the

building to remedy the identified deficiencies before the next audit visit. Why have a fire assessment at all? The main objective of the fire risk assessment is to ensure that, during a fire in the building, the pathway to safety for all of occupants of the building is a route that is safe to use. There are many aspects of the route that need to be assessed and the main aspects are discussed in the assessment, and it should include fire safety training for all of the occupants of the building. Summary Fire risk assessment is a difficult task and there is an assumption that the assessor understands the complexity of the construction of any building that was built at any time and the changes that have been made to the building over its life. There is little doubt that the occupants have changed also in number, type and capability. All of the changes may have changed the fire safety standard of the building for the worse, for the better or benignly. Great care must be taken by the owner or manager in the selection of an assessor if the company does not possess the appropriate level of fire safety knowledge and expertise within its employees. Jim Mann MIoD is Managing Director, Crisis Management Advisory Ltd. Dr Eric W. Marchant, is an Architect and Chartered Engineer (Fire Safety). Both are senior members of the Scottish Branch of the Institution of Fire Engineers. WWW.IOD.COM


PR

Anything but a quiet summer for Ryanair Donald MacKinnon MIoD looks back at the problems that beset Ryanair over the summer – and the likely long-term legal fall-out from them

Hundreds of thousands of holidaymakers found themselves subject to Ryanair’s flight cancellations over the summer and autumn. It’s a situation that’s set to continue to March 2018. Ryanair’s explanation was that it had mishandled its pilots’ holiday schedules. It all centres around a change in the way they calculated their annual leave, which essentially meant that too many pilots (and crew) had been given holidays at the end of the year, leaving the airline short-staffed. This problem was only made worse by the Flight Time Limitations which prevented pilots from doing double shifts to compensate for those away. There are certainly many takeaway lessons from this when it comes to staffing businesses and organising annual leave. However, the bigger lesson in this case is not how to organise a holiday roster, but how to keep employees happy, and how to respond when the company messes up. Ryanair’s Michael O’Leary is renowned for his ‘take no prisoners’ attitude, and makes no bones about the fact that cash is king. For the most part this seems to work, with Ryanair reporting £1.1bn in profits this year. The budget airline benefits from low plane purchase prices, maintenance and staff costs, enabling it to offer cut-price seats. Its reputation has also improved in recent years thanks to O’Leary’s enlightened ‘be nice to customers’ policy. Nevertheless, this success has undoubtedly come at a price and it has now become clear that it is staff satisfaction. As a starting point, this cancellation debacle opened up old wounds among pilots over working conditions. Pilot representatives have shared growing concerns over the number of pilots leaving for greener pastures and this is well-founded; it is reported that some 140 of Ryanair’s pilots have joined airline rival Norwegian in the last 12 months. Unhappy crews are leaving faster than they can be replaced and when this holiday issue arose, there were simply not enough pilots left to pick up the slack. These underlying demands for better working conditions also meant that attempts by Ryanair to resolve this problem failed. Pilots were offered a one-off payment of £12,000 to delay their annual leave until the following year but this was rejected in a letter signed by thousands of pilots. Tensions only worsened when O’Leary apologised to customers at their AGM by accusing pilots of being “full of their own self-importance”. In the midst of this employment rights saga has, of course, been the impact on Ryanair’s

customers. It is expected that 400,000 were affected by cancellations and thousands have now called for a boycott of the airline. The media storm that followed put the focus on O’Leary and his management of Ryanair. However, he has surprised many by both apologising to the pilots for comments he made and by offering them better working conditions. While it may be too little too late, we can hope that the controversial leader has finally learned two invaluable lessons. First, there is such a thing as bad publicity. Second, and perhaps more importantly, that employee satisfaction is a

commodity not to be sniffed at. The value of good employer-employee relations should never be underestimated; it impacts directly on customers, the reputation of the company, sales and profit. In a service-driven industry such as aviation, where the business is entirely dependent on the availability of trained staff, this should not be forgotten. Ultimately, companies would do well to remember that customer satisfaction can only take a business so far if this is delivered at the expense of its employees.

Left, a rueful Michael O’Leary


Technical briefing

Disrupt your sector... before someone disrupts you! Former Chairman of IoD Scotland Raymond O’Hare, whose independent non-executive director/advisory portfolio includes being a board member of the SQA, tells tech industry commentator Bill Magee how no industry, no profession, no area in fact, is untouched by the ‘blistering pace’ of new technologies, and how their quite profound impact is being experienced by all in the vital digital skills arena. Every one of our digital lives has changed over the past five years as a result of how technology has evolved and we have all embraced such change. In fact, we’ve been hungry for more such changes – to make our lives easier, simpler, more convenient and in many cases more enjoyable. When that happens at a population and society level, it doesn’t matter what industry you are in. You simply have to raise your game and think differently and this represents a challenge for all of us. People who resist change or ignore the factors disrupting their industry are often accused of looking through the wrong end of the telescope. That may seem a bit harsh. However, as respected authors Stephen J. Gill and David Grebow, in their The Future of Learning is Not Training claim: ‘We know from experience that change is hard. We tend to grab onto the past and use it to design the future. That is a profound failure of imagination.’ So, we are living in a very different world from just a few years ago, never mind 10 or 20 years ago. What do the following jobs all have in common: mobile app developer; wind farm engineer; cloud services manager, chief story teller, and chief listener? The answer is, of course, they did not exist a decade ago. And, of course, I could similarly list

a whole bunch of roles that we could have trained people for in many different situations over the years which do not exist as jobs anymore. Clearly it’s not enough to generate a bunch of qualifications certificates (on paper) and for these to be the only currency between the employers, universities, colleges, training providers and an individual. We know that qualifications are still important and will continue to be so, and of course the quality and integrity of these qualifications will always be a critical factor. But they are only one important element in a bigger picture as there are now so many sources of information about a person’s qualities, abilities and performance. Just think about Facebook, LinkedIn, Twitter, Digital badges. The list is ever-growing. We need to figure out what the relationship is between qualifications and certification – and these other sources of information I highlight above – and proof of learning. There is a real need for all of us to think differently about what we each do as organisations. Also, how we work better together to meet the needs of learners and employers alike. Now is the time for each one of us to focus on why we do what we so, and not just on ‘what we do’ as this will help us to respond more effectively to the changes that are happening. Going back to the Gill and Grebow paper:

they talk about mobile learning, microlearning, social learning and about learning apps being ubiquitous now plus they also talk about gamification being available for everything. It’s one example of how, at times, there needs to be a disruptive idea that lights up the crystal ball and makes us look at the future in a new way. Now, obviously, this is not all going to happen at once and of course, there will be a place for organisations who can both deliver training for the new skills that are required, in the new jobs and careers that have emerged and will keep emerging – as well as for the increased skills needed for the jobs which exist today but which are also evolving and changing. However, we must be all tuned into what’s coming next. It’s up to US to disrupt the market before someone else disrupts it for us! So, the challenge is there for each of us to think differently. We are operating in a changing world with a new and different generation of people who do things differently. We – in turn – need to do things differently.

Raymond O’Hare liaised with SQA’s Head of Assessment Futures Martyn Ware, with the above both reflecting on and complementing a Technical Briefing that IoD Fellow and Chief Executive of Exception Scott McGlinchey gave earlier this year.

The bottom line on the new learning agenda When it comes to the learning agenda, the only certainty about the future from here on out is that it won’t resemble the past, says Bill Magee. We no longer have the luxury of time to define, design, develop, deliver, manage and measure formal courses. Survival will require people who can navigate a rapidly changing maze of policies, procedures, products and services at high speed. They need to find their own curriculum and courses, figure out an appropriate way to learn and get on with it.

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It’s a cliché to say it but employees will have to learn how to learn in this new environment. And management will need to support self-learning, not direct it. Whether the future of learning is about managing minds or training, or perhaps a combination of both, if the predictions of the World Economic Forum, Gill and Grebow and others are correct. In future, everyone in the workforce will need to update and upgrade their capabilities more frequently than ever to cope with the predicted changes in the world of work.

“We no longer have the luxury of time to define, design, develop, deliver, manage and measure formal courses.” n You can catch Bill Magee’s Daily TechPost (most days!) on Twitter #billamagee WWW.IOD.COM


Staff learning and development is key for Apex Hotels in new link-up with SQA SQA’s Theresa McGowan and Angela Newton of Apex Hotels (both seated) with the rest of the Apex team

The Scottish Qualifications Authority (SQA) is committed to improving the prospects for learners and employers in Scotland. Working together with industry leaders and businesses, SQA can help meet the country’s skills needs. Scotland’s hospitality sector is thriving and companies such as Apex Hotels, working together with SQA, have put learning and development at the heart of their business. Apex became an SQA Approved Centre in 2016, delivering their own training programmes and a broad range of Scottish Vocational Qualifications (SVQs) in: • Food and Beverage Service • Front of House Reception • Hospitality Supervision and Leadership • Housekeeping • Professional Cookery The hotel chain has always had strong links with education, through its work with training providers to deliver modern apprenticeships or though promoting hospitality as a career choice to learners in schools, colleges and universities across the UK. In 2015, Apex also began working in partnership with Craigroyston Community High School in Edinburgh to develop their ‘preapprenticeship programme’. This programme gave the school’s senior pupils a year-long structured work experience programme at the Edinburgh hotels, which continues to form a crucial part of the school’s curriculum. The working relationship between Apex and SQA has been very positive. Angela Newton, Head of Learning, Development & Quality at Apex said: “Our SQA Approved Centre status aligns with our recruitment strategy – giving new and existing staff the useful development opportunities they need. It also ties nicely into the work we are doing with schools as modern apprenticeships can be the progression route after successfully completing our pre apprenticeship programme with Craigroyston and future initiatives. “SVQs allow our staff to be assessed while doing their day jobs and for some to stretch their development working towards the next step in their career path. It also creates a positive environment and investment of time in our people which we will benefit the skill level and retention of our staff.” “The support we received from Theresa McGowan, our account manager, to help us become an Approved Centre was excellent. She supported us every step of the way and helped us WWW.IOD.COM

identify the qualifications that were right for our business.” Working with SQA has allowed Apex to bring their training and development in-house and this, aligned with their existing relationships with the education sector, will see them grow in the future. Angela continued: “We have recently appointed a new position within Apex, that of Executive Head Chef for Education and Training. This new role will support the development of our chefs with the delivery of SVQs and practical skills training as part of our Chef’s School. “The recruitment of skilled chefs remains an

Apex Hotels

Apex Hotels is among the UK’s leading independent operators of contemporary city centre hotels. The family-owned chain has ten hotels in London, Bath, Edinburgh, Glasgow, and Dundee. A founding-member of the Apprenticeship in Hospitality Scotland (AHS) programme, they are actively involved in encouraging young people into careers in hospitality whether through Modern Apprenticeships or their Pre-Apprenticeship Programme.

ongoing challenge for the hospitality industry. However, through collaboration with schools and colleges we hope that this will be a worthwhile investment for the future. “We are in the process of adding ‘Pro Cookery level 1’ to our existing qualifications. This qualification is ideally suited to the young people and aspiring young chefs we are visiting in schools and colleges. “We are grateful to SQA for their support and look forward to working together in the future.” Theresa McGowan, SQA Regional Manager for Edinburgh, East Lothian and Midlothian, said: “We are delighted to be supporting Apex Hotels. The approach they have taken to give back to their staff through delivering SVQs, and to their community through the preapprenticeship programme with Craigroyston have been hugely beneficially for Apex Hotels and Edinburgh. “This approach can be replicated anywhere. Our dedicated team of Regional Managers and Business Development consultants are ready to support businesses across Scotland. We can provide the best possible advice and guidance for qualifications and skills development at a local level.” To find out more about SQA’s regional team, visit www.sqa.org.uk/businessdevelopment or call 0303 333 0330.

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Spotlight: Malcolm Brebner, MD, Fulcrum Insured Employee Benefits

Retain and attract employees with a benefits package that fits After 10 years of helping employers to simplify employee benefits, Malcolm Brebner talks to Direction’s Rob Beswick about how he can help your business ensure the most effective benefits package is in place

‘There are a lot of “vanilla” medical insurance and income protection designs out there that nonspecialists simply renew with very little thought about suitability...’

Companies are increasingly concerned about how to attract – and retain – the best staff, and it’s a problem that’s growing as the pool of skilled labour appears to be shrinking. As the demand for skilled people looks set to heighten in many sectors of our economy, the most sought after employees are looking for more than just a competitive salary at interview. They want training and career development; subsidised child care and gym memberships; season ticket loans; pension contributions; and insured benefits to protect their health and income. Principal among these are medical insurance, income protection and death in service benefits. These can be bought ‘off the peg’, but the challenge for employers is finding affordable policies that suit both their and their employees’ needs. Malcolm says this can often be more challenging than it at first seems. “Our core focus is medical insurance, income protection and death in service benefits, but we regularly collaborate with occupational health, legal, employee assistance, and flexible benefit platform partners. “The popularity of self-serve flexible benefit platforms is clear – they enable employers to rapidly extend their benefit offering, communicate everything on a single secure website, provide audit trails, and significantly reduce admin time.” However, its often the insured benefits that employers need the most help with, Malcom points out. “We meet a lot of companies whose benefits have grown in a haphazard fashion. They may have been badly advised in the past, or are working with inherited schemes with multiple membership categories after acquisitions and TUPE transfers.” That’s where Fulcrum steps in. As Malcolm explains, “We help companies to de-construct, understand and simplify these arrangements. Our experience makes us ideally placed to do this. We’re not a sales team pushing one specific policy or another; we have a detailed knowledge of the sector and excellent insurer contacts that mean we can navigate employers through to the best cover packages available.

team, so speed and continuity of service are two points of difference that have helped us win and retain customers.” The company has also benefitted from maintaining a tight focus on its core services. “From the outset I decided we would specialise in insured benefits, choosing not to offer financial advice. This was one of my better decisions, because it enabled us to work closely with financial advice firms who don’t have our insurance expertise – it’s a win-win when they introduce us to solve group insurance problems for their customers.” The cost of cover may surprise, says Malcolm. “It is often the first question we’re asked – ‘how much is this going to cost?’ Inevitably the type of business, location and age profile has a bearing, but often it’s around two per cent of payroll. “This links with my earlier comment about designing a policy around you, allowing the employer to dictate the depth of cover and how it impacts on the workforce.” A lot of employers buy cover with the very best of intentions but without ever having it explained to them – or designed especially for them. That’s why, says Malcolm, “even if you have an existing benefits package, if you’re not sure that it’s in the best shape to help you attract – and retain – the best people, it could be worth speaking to us to make sure you’re providing the level of benefits you and your employees need.” • Fulcrum celebrates its 10th anniversary this month as a specialist negotiator of insured employee benefits. For more details on how it can help your organisation, call 0845 872 9400 or see www.fulcrumieb.co.uk

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Malcolm Brebner (left)

“We can go in, work through what they have and create a plain English summary that explains where the holes and inefficiencies are. We open the process up, offer new quotes and allow employers to decide how deep they want the cover to go. “This isn’t necessarily about being cheaper, or saving money. It’s about making the best use of the money available.” Working with an insured benefits specialist is important for several reasons. The number of insurers for certain in-work benefits has reduced in recent years, but paradoxically, Fulcrum’s approach ensures there are more design choices than ever. “There are a lot of ‘vanilla’ medical insurance and income protection designs out there that non-specialists simply renew with very little thought about suitability. Lifetime allowance tax thresholds aren’t being discussed in death-in-service reviews – and a surprising number of multinational companies aren’t aware of the profit-sharing opportunities available to them through multinational pooling.” It is this depth of knowledge that helps Fulcrum stand out from the crowd – delivered by an outstanding team. “The key to our success is our people,” says Malcom. “We’re a very settled, knowledgeable

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Business has to: learn to love this: time of changes: IoD Scotland Conference opens with chair Susan Deacon’s rallying call to accept change and the need to adapt Professor Susan Deacon had a stark message for Scotland’s businesses as she opened the IoD’s 2017 Conference: Adapt – or die. It was not the strongest or most intelligent animals that have survived over the millenia, she pointed out, but the ones who were able to adapt to their changing surroundings the best – and Darwin’s 19th century musings on evolution are as pertinent today for modern business leaders as they were for the dinosaurs and other creatures that never made it out of the Jurassic era. Professor Deacon stressed: “We are facing a time of changes like none other that many of us have witnessed, both in terms of politics, society and technology. Only those business leaders who adapt a creative and innovative mindset that embraces change and adaptability will flourish in the future.” Her rallying call for a new, more creative Scotland was the perfect introduction for Philip Long, director, V&A Museum of Design Dundee, who urged business leaders to place creative design at the top of their agendas. The phrase ‘creativity industries’ was assumed to be associated only with arts and design sectors, yet in truth, this narrowing of emphasis did a disservice to the importance creativity plays in all businesses: after all, “aren’t we all creative,” he asked? One of Philip’s key goals for the V&A will be to highlight the role great design can have and reinforce the need for the business community to work with Scotland’s brightest designers to ensure exciting new ideas are commercialised and become the products and services we buy or access in the future. Scotland has a genius for design, he said, from the engineers of the 18th and 19th century through to the video gamers of today. Their design inspiration had been the underpining of Scotland’s remarkable impact on the world and

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should be used as a template for the future. Philip said the V&A will be celebrating designers not just of the past but of the present, fostering modern design creativity and, through its Design for Business programme, ensuring that designers and business work more closely together in the future. The most successful companies have great design hardwired into their DNA, understanding that only through innovative design can future challenges be met and the adaptability and sustainability of the business ensured. He promised that when opened next year, the V&A Museum of Design Dundee will promote excellence in design and creativity across all walks of life. One business that can claim to have that design creativity hardwired into its DNA is Jaguar Land Rover, and conference was delighted to hear from its Dumfries-born Director of Design, Ian Callum. The company was a global success story thanks to its adherence to a strict design

‘Only those business leaders who adapt a creative and innovative mindset that embraces change will flourish in the future’ philosophy of ‘the need to bring order out of chaos’. However, as the creator of dramatic, exciting cars, Ian always remembered that a Jaguar needed ‘just a little bit of chaos in the mix.’ Modern Jaguars were built with an eye on every corner of the business. Style was important but so was feasibility and ensuring that the car told a coherent story. He

highlighted the 2002 Year XJ, a car regarded as a beautiful but very traditional-looking Jaguar. Sadly, that description overlooked the fact that it was built on what was, at the time, the world’s most advanced chassis – a story lost on the wider motoring public, which failed to see beyond the traditional Jaguar cabin, replete with chrome and hardwood veneer. It reinforced the need for design to be consistent, Ian said. Modern Jaguars are a blend of the designer, the engineer and the accountant, with style and purpose at the forefront of their raison d’etre but with an understanding of the economics underpinning all design decisions. Future Jaguars would revolutionise motoring, with electrification now entering a new phase as far as power, range and performance were concerned. Future cars, including the soon to be released iPACE, would transform motoring sustainability, efficiency and connectivity, turning your car into your “personal butler” and linking transport, business and personal life via your phone. Ian touched on the issue of whether Scotland was losing too many of its great designers to the south and around the world. “It has always been the case that great designers will travel and pick up new inspiration from other parts of the world, but it is important Scotland has the manufacturing base to lure them back home where they can contribute and bring their creativity to life. “Too often Scottish design is commercialised elsewhere; it was important to get young people enthused by design at an early age,” he said, and paid tribute to Philip Long’s work at the V&A, particularly its schools’ programme which was taking the idea of creativity and design into the classroom and helping thousands of schoolchildren to think again about the world around them. WWW.IOD.COM


IoD SCOTLAND CONFERENCE REPORT

Left, from left to right, conference speakers Ian Callum of Jaguar and Philip Long of the V&A Museum of Design Dundee with session chair Louise Macdonald cbe

‘It is important that Scotland has the manufacturing base to lure creative designers back home where they can contribute and bring their creativity to life.’

Building on trust Conference opened on the Thursday with a thought-provoking Leadership Lecture, delivered by Professor Dame Anne Glover. A molecular biologist, former chief scientific adviser to the President of the European Commission and current Dean for Europe at the University of Aberdeen, Dame Anne looked at the impact science has had on European life, and how cross-border co-operation had led to Europe being a world leader in scientific discoveries. It was important, however, that we linked the ‘creators of knowledge’ with ‘translators of knowledge’ – those businesses that commercialise scientific breakthroughs and create something practical from them. This is a struggle Scotland has faced for decades. The growth of nanotech and 3d printing offered massive possibilities, as did renewable energy, but she questioned why such landmark discoveries were not being developed through to market in Europe, which appeared to have ceded its lead in such areas to Asia. “We are smart, we have world leads in health and transport, but we need leadership to take control of our own inventions and use them to build a fair, equitable society.” But any steps forward had to be made from a position of public trust – something German engineer Robert Bosch put succinctly when he stated ‘I would rather lose profit than trust.’ His leadership had built the business into a trusted brand and was an example all would do well to emulate – particularly politicians, who too often fail to deliver on promises made, said Dame Anne, which inevitably eroded public confidence in them.

Conference gives Government thumbs down over Brexit plans

A delegate takes part in the conference survey

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As part of the Conference, delegates were surveyed by The Scotsman and The Herald on a number of key issues of the day. The papers asked: • ‘Do you think the UK Government is doing a good job with Brexit negotiations.’ The overwhelming response was No, with just 10 per cent agreeing with the statement, 90 per cent against. • ‘Is Brexit causing recruitment difficulties from the EU?’ The response was 92 per cent saying Yes; just eight per cent No.

• A closer response came from the question: ‘Are you in favour of higher taxes to pay for public services?’ 59 per cent said Yes, 41 per cent said No. • ‘Would such higher taxes lead to a brain drain or problems recruiting?’ 51 per cent thought so, 49 per cent said no. • ‘Is disruptive technology having a positive or negative impact on your business?’ 74 per cents said it was having a positive impact, 16 per cent a negative one; 10 per cent unsure.

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Taking questions at conference – Kenny Farquharson kicks off proceedings for the panel Q&A

Conference enjoyed a lively Q&A session during the IoD Scotland Forum. Chaired by Kenny Farquharson, it brought together Joanne Casey, Mactaggart & Mickel; Susan Deacon cbe; Chris van der Kuyl, 4J Studios; and Dr Graeme Roy, Fraser of Allander Institute, to answer questions from the floor and consider some of the big issues of the day How can we improve Scotland’s economic performance? Susan Deacon: We need to be faster. Government needs to harness the latent ability we have, we need to be action-led and not process-led. Scotland has a big advantage in that it has a relatively small business and social community. We need to co-ordinate better, faster and more efficiently. We need to talk more – but we need to challenge each other more, too. Graeme Roy: The macro-economic changes we face in next two decades are huge. Combine those with the major demographic and structural changes coming our way that will impact on the economy and you have a perfect storm of change. We are focusing on Brexit – unsurprisingly – but the big story outside these islands is the continuing growth in the emerging markets. Currently Scotland exports more to Luxembourg than to India. Why? We need to build a highly skilled, high productivity exporting economy, yet according to the Bank of England, a third of all UK companies have not experienced any productivity growth since 2000. In the first seven years after devolution Scotland saw economic growth of 20 per cent. In the 10 years since the crash, we’ve grown just two per cent in total. Why?

On the key problems facing Scotland...

Chris van der Kuyl: The technological changes we are facing are breathtaking. We are currently going through the fastest pace of

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change any of us have ever experienced. Yet the pace of change today will be the slowest we’ll ever experience in the future as the rate of change will only get quicker. So if it’s going too fast for you now, tough… it is only going to get quicker. Complacency and a reluctance to embrace change is biggest obstacle your business will have The Government says it wants Scotland to be the most entrepreneurial nation on earth. That’s great but it is actually the baseline position. You have to be entrepreneurial to succeed. Joanne Casey: House building is in a position where we have the biggest housing shortage since 1945. That’s good for a house builder like us as we have high demand and short supply. But problems are coming our way. Skills shortages are a real concern and we now have a position where young people without access to the Bank of Mum and Dad need 19 years to save for a deposit. It’s not a great business model when you are out-pricing your future customers Graeme Roy: Economists don’t agree on much but they all agree that productivity is key to a better economy. Yet when we talk productivity we usually mean the big companies. Actually, they are good at productivity. It’s the small family-owned businesses where the problems lie. It is hard to get tech into them, to drive innovation – that’s where our drive to better productivity should start.

Chris van der Kuyl: Education in tech is key. Only 14 per cent of computer studies students are girls – we’re missing a huge demographic there. We’ve also got 14 per cent fewer computer science teachers than 10 years ago Why are we still teaching foreign languages? The language our children need to speak in the future is computing and coding.

On the reluctance to take risks...

Chris van der Kuyl: We’ve got our attitude to risk wrong. We are becoming more risk averse as the rest of the world is going the other way. We need to maximise our attitude to risk to the point just before we’re wrecking the company Look at Elon Musk. He’s a tech guy who started making electric semi-autonomous cars and now he’s building rockets, testing them almost to destruction but is getting it right. He’s virtually single handedly ended NASA’s work in rocket tech as he’s doing it better, faster. Susan Deacon: We need leadership that is not just top down but starts from the groundfloor. Government has to be brave. Don’t hit people because they take risks and fail. Get them to try again. Encourage risk taking Graeme Roy: The traditional educational model is dead. We need to be more flexible about what we mean by ‘education’.

On improving partnership working...

Susan Deacon: We’re not good at joining up the economic side and the social side. We almost act as if they exist in parallel universes, that the economic decisions we take won’t affect the social side and vica versa. That’s wrong. Let’s look at our economic future. We say we need a more skilled economy, high productivity. Fine, but the pipeline to that starts in our schools so we have to get that right first.

“In the first seven years after devolution Scotland saw economic growth of 20 per cent. In the 10 years since the crash, we’ve grown just two per cent in total...” WWW.IOD.COM


IoD SCOTLAND CONFERENCE REPORT

“When we talk productivity we’re usually talking about the big companies. Actually, they are good at productivity. It’s the small familyowned businesses where the problems lie. It is hard to get tech into them, to drive innovation...” Dr Graeme Roy, Fraser of Allander Institute

The technological changes we are facing are breathtaking. We are going through the fastest pace of change any of us have ever experienced. Yet the pace of change today will be the slowest we’ll ever experience in the future as the rate of change will only get quicker. So if it’s going too fast for you now, tough… it is only going to get quicker... Chris van der Kuyl, 4J Studios

Kenny Farquharson

Young Enterprise bosses on sacking friends... Conference heard an inspirational presentation from two business leaders at the very start of their respective careers, when we welcomed Young Enterprise Scotland winners Chloe Fairman and Taylor Henderson. The pair, from Lochgilphead High in rural Argyllshire and Bo’ness Academy, Falkirk, respectively, ran through the challenges, triumphs and adversities they’d faced while running student businesses during their sixth form studies. The experience had shown them the need for a clear business strategy, and of how attention to the little things – such as time keeping and absenteeism – were vital to success. The toughest challenge was to balance longstanding friendships with the role of being a manager – pulling up your friends for poor performance was a difficult but necessary task.

Marlene Lowe, Forbytes, with YES speakers Chloe Fairman and Taylor Henderson and Louise Macdonald

Conference partners

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Talent concerns ‘biggest worry’ A survey by Vistage International has exposed the darkest fears of directors – and it appears that talent management is the biggest issue keeping them awake at night. Laura Gordon revealed the findings at the Conference afternoon session, during which she highlighted how recruitment difficulties were beginning to plague UK businesses. As many as 750,000 workers were currently disillusioned with the UK and looking to leave, with Brexit the principal reason. In addition, a diminishing pool of talent was making it increasingly difficult to fill key roles. Yet 51 per cent of organisations were looking to increase employee numbers in the next 12 months. It was clear that one of the biggest challenges facing business leaders in the next few years would be to get the ‘right people in the right seats on the bus’. In-house training budgets would have to be ring-fenced to ensure a pipeline of talent – but it was also important that previously untapped reserves of potential employees were tapped. Are you missing out on the skills of older workers, for instance, or ignoring the talents of over 100,000 people who are classed as disabled in the UK? • You can read the full survey at http://pages.vistage.co.uk/lp-talent-management

Building Silicon Valley II – in Scotland Tech entrepreneur Ian Ritchie calls for a new global centre for digital innovation – in Scotland Building on Scotland’s current position as a centre for digital innovation was going to be crucial if the economy was to be kept growing in the future. That was the view of Ian Ritchie cbe, a non-executive chairman who founded OWL in 1984, selling it to Panasonic in 1989. Since then he has personally invested in more than 40 tech firms and helped companies such as Iomart plc, Tern plc and Krotos grow from initial concepts to global players in the tech sector. He challenged conference: why can’t Scotland build the next Silicon Valley? The original computer heartland had been built on the back of Hewlett Packard setting up there in 1937 – and attracted other IT people, who later spun out their own firms in the region and quickly established it as the world centre for digital innovation. Scotland has the vital ingredients needed to repeat this process: the right language, world-class education, strong financial industry and we are well placed geographically to talk to both North America and Europe. However, he stressed how, uniquely, the tech

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sector was non-dependent on location, and how it could operate virtually tariff-free and without major distribution costs. Scotland is, he said, a world leader at breakthrough innovation but lacked the skills it needed to commercialise the product – or as he put it, “good at tech, weak at management and marketing.” There was a lack of venture capital and ambition when it came to taking products to market, be believed. He also questioned whether Scotland’s

universities were becoming too elitist, more interested in training graduates for academia and a life of research papers and conference speeches than the business world. The frustration was that, when done right, Scotland had proved it could be a world leader in digital sector. He cited Skyscanner, Grand Theft Auto, TV Squared and IoMart as just a few of the examples of home-grown businesses which had been spun-out from Scotland and been successful around the world: proof global leadership was possible.

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The finance panel, with session chair Raymond O’Hare

Top banks too slow, too timid for modern start-ups Ian Ritchie’s address (facing page) touched on issues around raising finance for digital companies, and in a round-table discussion with representatives from the finance world that followed it was clear that a new approach was needed to back a new wave of asset-light but content-rich SMEs that were emerging. The world of finance was becoming increasingly volatile, with new players coming to market to replace what some saw as the reluctance of the banks to back business growth. Evelyn McDonald, CEO of Scottish EDGE, a company which funds Scotland’s innovative, high-growth entrepreneurs, said that her company was seeing more people coming to them earlier in their business careers. Few people at that stage were recommending the major banks for growth finance as they were seen as too risk averse and slow to respond. She stressed to potential entrepreneurs that despite how the market may seem, there was a huge well of support available – though she admitted that it could seem scattered and piecemeal at times.

That had made access to finance more complicated than it perhaps needed to be. Venture capitalists were playing an increasing role – though it was lamented on how few were from Scotland. However, as the panel pointed out, ‘four hours on a train gets you to the heart of finance’ and it was a journey worth taking. Darren Nightingale, chief customer officer for Social Investment Scotland, opened the discussion up to include social enterprises, and

“The main banks have dismantled much of the human side of their lending ... there’s a lack of understanding of the challenges in running a growing business ...” how his organisation helps to fill a gap in that sector. His team often worked with small businesses for as long as three years, signposting them to support. When people have a passion for their idea they need our backing, he stressed. One of the major criticisms the panel had for

the main banks was that they had dismantled much of the human side of their lending, and there was a lack of understanding of the challenges running a growing business can bring. What was needed Fraser Lusty, director of Equity Gap said, was patience: “We don’t throw our hands up in the air after a bad quarter.” His business was careful about which emerging businesses it backed, “We look at between 120-150 businesses a year, and probably back three.” Evelyn McDonald had some straightforward advice for any would-be entrepreneur seeking finance: come in well-prepared. “Know your numbers, pitch professionally, understand your businesses and state where the funding is needed - and have an exit strategy ready, if necessary.” Ian Ritchie thought finding the right mentor was important for any would-be business pioneer “We shouldn’t automatically expect people to know the game and how to play it,” he pointed out. “There’s huge amount of value in getting the right NXD in to support you.”

Conference Dinner Conference wrapped up in its usual convivial style, with members enjoying a black tie dinner followed by a hilarious after-dinner speech by Edith Forrest (far right) – a criminal law advocate with a wicked sense of humour and plenty of tales to tell about life representing some of Glasgow’s worst criminals.

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Putting art in the heart of troubled community Shona McCarthy, Chief Executive, Edinburgh Festival Fringe Society

Mike Adams addresses conference, watched by session chair Shona Mitchell and speaker Shona McCarthy

Time to bring disability out of the shadows CEO of Purple challenges IoD not to miss out on disabled community’s talent - and cash Mike Adams has faced personal physical challenges all his life – but that hasn’t stopped him from building a stellar career as an advocate for disabled people in the workplace. Now the CEO of Purple, the not-for-profit organisation which champions the role of disabled people in society, he challenged conference delegates to consider their own workplaces and ask why disabled people remain under-represented in it. “It is no longer acceptable to be uncomfortable about disability,” he said, “and use that as an excuse for closing the door on a hugely talented community.” Disability, and your organisation’s response to it, cannot remain a marginal issue, he said. Directors must take ownership of it and make it a mainstream issue. He stressed that it was a two-fold process. First, by closing off the disabled community from your workforce you are denying yourself talented individuals. Second, you are also potentially cutting yourself off from the ‘Purple Pound’ – the term coined by economists to reflect the value of the disabled community to the economy. It is now estimated to be worth £249bn – that’s bigger than the UK’s social service budget. The number of people living with a disability may surprise: just under a fifth of all adults have rights under disability legislation – but 80 per cent of those have hidden disabilities. A common mistake is believing that disability equates to wheelchair use – after all, the wheelchair

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is the official sign for disability – yet only four per cent of disabled people are wheelchair users. Adapting your business to match disabled people’s needs can be as simple as ensuring websites are Job Access With Speech (JAWS) enabled or utilise other screen readers; failing to do so could drive potential customers from your site. Your response to disabled people can adversely affect your brand, with young people in particular likely to be turned away if they feel a business places obstacles in front of that community. The biggest challenge for disabled people remains a lack of job opportunities, however. There is a 32 per cent gap in employment rates between disabled and non-disabled people, despite various disability discrimination acts. Yet disabled people have the skills and talents you need and show greater company loyalty, have higher productivity rates and lower absenteeism rates. Mike recognised that many managers are nervous around disabled people as they fear upsetting someone accidentally by saying the wrong thing. But as he pointed out, how does not hiring someone because you are concerned you may cause offence help them in any way? Instead, have a conversation; be open and speak without fear. Disabled people just want the chance to show what they can do.

The chief executive of the Edinburgh Festival Fringe Society was delighted to run through her eclectic career within the world of arts and performance, which now saw her run the largest collection of artists and entertainers in the world every August. Born in Northern Ireland as the Troubles began, Shona was painfully aware of the need to create a unifying space in her home country, where people of both communities could find harmony. “My best moments were when I went to music gigs,” she recalled. No-one there was Protestant, Catholic, Unionist or Republican. Instead, we were all fans of the band and for that evening, were united in a common feeling.” It was in an attempt to recreate that feeling of unity that Shona has thrown herself into the creative industries, first by running the Children’s Film Festival, launching Cinemagic – a charity that works with young film makers – and then leading Belfast’s Capital of Culture bid. The latter was a battle they did not win but it did help put culture on a national scale and brought creativity out of the shadows as she brought life to the concept of the Titanic Museum and projected images on to the giant H & W cranes that dominate the city’s skyline. The experience gained in that role led her to Derry/Londonderry where she led its UK City of Culture year in 2013 – a year-long extravaganza of art, music and community events that galvanised the population and brought communities together. It was her ‘Field of Dreams’ moment – an example of how ambition and drive could overturn negative perceptions and challenges to create something really special.

Quick points on disabled access • Ensuring your website is fully accessible to the disabled community will take around 3-4 hours – tops! • Develop your marketing to include the disabled community – but don’t just assume a wheelchair and dark glasses does the trick • Be Disability Confident – that’s the Government-backed programme that has taken over from the former Positive About Disability tick mark scheme WWW.IOD.COM



Membership Benefits

international TRAVEL

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

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

MEETING ROOMS Please check out our complimentary members’ facility at 10 Charlotte Square: n Members’ lounge and workroom: Free of charge to members for informal meetings with up to three guests. Refreshments and Wi-Fi – plus VAT-exempt meeting room hire n Exclusively for members to hire: - Boardroom for 16 - Garden View room, for 8 - Castle View room, for 12 - Forth View room, for meetings, training workshops, lectures for between 20-50 people, etc n Free AV and laptop by prior arrangement

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

HOTEL DISCOUNTS n Extended catering can be arranged Call 0131 557 5488 or email iod.scotland@iod.com for details. PLUS... special discounts at 200 SVS Glasgow IoD hub: - 10% discounted parking at Q Park Waterloo Street - Complimentary Wi-Fi access - 10% discount in the Restaurant on 6th, on meeting room rates and in The Spa - Hourly Room Hire Rates - Special deals at The Shore Loch Lomond. This is 200 SVS’s newest venue and features events space, a spa and restaurant. Join our mailing list to be the first to know of opening offers – info@ theshorelochlomond.com.

IoD Scotland has negotiated special discounts and rates for members at hotels. Members can obtain a 15 per cent discount off accommodation (best available rate), food and beverages as well as meetings and event bookings at PH Hotels: n The Grand Central Hotel, Glasgow n Blythswood Square, Glasgow n The Principal, Edinburgh, George St and Charlotte Square 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.

NEW Parking benefit If you are visiting the IoD’s Charlotte Square Hub for a meeting or director development you can take advantage of an exclusive member’s only discount for parking at NCP Castle Terrace, Edinburgh: park for up to 12 hours for £10. Pick up a voucher from the IoD office to use when exiting the car park.

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The Principal, Edinburgh

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

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

RAIL TRAVEL

Free first-class upgrade on ScotRail services Abellio ScotRail is continuing its fantastic offer to IoD Scotland members, who can have a Free 1st Class Upgrade on ScotRail Services (nb, upgrade is available on ScotRail services only). As part of the move to Smart Cards for rail users, all IoD Scotland ScotRail users must now be in possession of a Smartcard before they can access the First Class upgrade. To apply for an individual Smart Card visit the ScotRail Leisure site at https://www.scotrail.co.uk/tickets/ smartcard First Class upgrade Terms and Conditions: • Advance tickets do not qualify for this offer • The 1st Class upgrade is available on Anytime and Off Peak tickets only, and subject to availability of seating in 1st Class. • Only IoD members with a ScotRail Smart

Card will qualify for a free 1st Class upgrade, subject to availability and ticket type. • This offer will be reviewed on an annual basis and may be withdrawn at any time. • 1st Class upgrade is NOT available on discounted Club 50 purchases or Flexipass. If you already hold a Club 50 Card or Smart Card you do not need to apply for another card but you still need to contact Elaine Chester - elaine.chester@scotrail.co.uk – with your card details. For more information on ScotRail: See www.scotrail.co.uk/businesstravel or call 0141 335 4015 to find out more.

IOD ADVICE LINES All IoD members have access to specialist information and advice, including legal and tax helplines and business research. Make sure you are registered online at ‘My IoD’. This is the place to contact the Information and Advisory Service and to review existing enquiries – see www.iod.com/services. Our legal helpline provides IoD members with free and prompt business legal advice on a wide range of employment, company, commercial and personal legal matters in the UK and Europe. Our Business Information service you have access to our top professional researchers, who can provide you with valuable information on topics ranging from market forecasts and industry trends to trading abroad and employee salaries.

Aberdeen Airport: Northern Lights Executive Lounge

AIRPORT LOUNGES IoD membership gives you free access to four Airport Lounges in Scotland, plus eight others in the rest of the UK – just sign in with your IoD membership card. Edinburgh Airport: Aspire and No.1 Lounge Glasgow Airport: Upperdeck lounge Aberdeen Airport: Northern Lights Executive Lounge Inverness Airport: Swissport Executive Lounge.

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

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Branch news

IoD helps make personal connections that breed business success Sonia Cottom IoD Tayside Members of the IoD Tayside committee were privileged to host a networking event at the prestigious Gleneagles Hotel, Auchterarder, for its members at the end of October, with each of them invited to bring along a ‘business buddy’. The event was also opened up to local businesses who were not members of IoD but who would benefit from local networking and knowing more about the work and ethos of the IoD. We heard speeches from both Bernard Murphy, managing director of Gleneagles, who kindly donated the facilities and delicious canapés, and from Douglas Wood of WoodWinters Wines and Whiskies in Bridge of Allan, who supplied the wonderful beverages (I’m sure the wine tasting was an absolute hit!). We were privileged to hear about their respective journeys within very different industries, leading them to the success of where they are today. What came over loud and clear was the immense passion for what they do and how they deliver. Opportunities such as this, at which we can come together as fellow leaders and directors, creates the platform for us to work together to change the chemistry and underpin the evidence needed for effective business planning and strategic delivery. There is no doubt that leadership has its challenges – so many speak about it being about looking ahead, forward planning, forecasting etc – however, they forget that we do this while also looking back and thinking about what changes we need to make. That means we are almost pulled in two ways, in different directions. We are constantly faced with having to make decisions in volatile, uncertain,

Pictured at Gleneagles are IoD Executive Director David Watt, Sonia Cottom, Mel Morris and Kirsty Livingstone complex and often ambiguous situations and one of the key strategies for approaching this, I feel, is having supportive key networks like the IoD and nurturing them. We are surrounded by a world of hashtags, informatics, analytics, robotics, artificial intelligence, bitcoin, blockchain and social media and we need to use the opportunities these bring to gain a competitive advantage and look at how we are part of shifting the skills paradigm of the future. But let’s face it, while social media certainly makes doing business, communicating with and connecting with people a whole lot easier and has

made us feel closer to other parts of the world, there’s something of that special added value of actually meeting people; a meeting of minds like we experienced at this event often produces the best results. Business is about creative industries – not so much in the traditionally defined sense – but businesses that are creative in the way they think and deliver are more innovative, profitable, more sustainable and better employers. It was certainly an evening which provided us all with some inspiring thoughts for the future, some sharing of best practice and some excellent networking.

Our event hosts... Our hosts and guest presenters for the evening were two very different people although clearly there is a strong overlap of their sectors. Bernard Murphy was appointed Managing Director of The Gleneagles Hotel in January 2015, having previously been General Manager since December 2007. He is responsible for developing the hotel’s international reputation as one of the world’s leading leisure and business destinations. Bernard’s experience and interest in hospitality started in London in the early nineties, when he worked for The Churchill Inter-Continental Hotel as Front Desk Manager before moving on to The Britannia InterContinental Hotel in London, as Assistant Front Office Manager.

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He first joined Gleneagles in 1995, holding various managerial positions from Front of House Manager, to Operations Development Manager, Operations Manager and most recently as Hotel/Resident Manager. On leaving Gleneagles in 2005, Bernard joined Compass Group, the world-leading food and support service company, to lead facilities management for the RBS Headquarters in Edinburgh, and managing front of house and catering services throughout the UK and Ireland for RBS. Before beginning his professional career in hospitality, Bernard achieved a BA First Class Honours Degree in Hotel and Catering Management, and latterly a Master of Business Administration with distinction from the

University of Strathclyde Graduate School of Business. He is Master Innholder Trustee for the Hospitality Industry Trust Scotland, Chairman of the Connoisseur Scotland Group, Board Member of the International Leadership School and Fellow of the Institute of Hospitality. Douglas Wood is the owner of WoodWinters, a multi-award winning business that is the current Scottish and UK Wine Merchant of the Year. Originally a chemical engineer, Douglas established Woodwinters in 2005 in Bridge of Allan and within the last 12 months has opened a Highlands hub and London office. WWW.IOD.COM


Advertorial: Hamilton Park Racecourse

An event with a difference at Hamilton Park Do you want to host an event with a difference? Then look no further than Hamilton Park Racecourse. A unique venue in the heart of Lanarkshire, Hamilton Park Racecourse recently underwent an £800,000 refurbishment, making it the ideal location for your next event. Combining modern décor with luxury facilities, there’s a venue space to suit every occasion. Why not visit our Duke’s Suite, which boasts stunning views over the race track, or The Hill Suite, which looks out over the Parade Ring? Whether you want to impress a client with a unique meeting room space, or plan to host a team-building day, seminar or exhibition, our team will be happy to provide a bespoke package

The elegant Duke’s Suite The newly refurbished Hill Suite

to suit your needs. Complimentary Wi-Fi is available throughout the building and any AV requirements can be

catered for using our carefully sourced suppliers. There are over 18 event spaces to choose from and, with over 1,000 complimentary car parking spaces on site as well as excellent transport links, the opportunities are endless. Make your event one to remember with our in-house catering, courtesy of some of Sodexo’s top chefs. With a range of options available, from finger buffets to sit down meals, we offer tailored packages to suit your needs. Our friendly and helpful staff are only a phone call away, so why not get in touch today to make your next event extra special? • More details at www.hamilton-park.co.uk


Branch News/IoD Scotland Events

Information sharing and access are key to IoD David Hoey, IoD Glasgow and West of Scotland The IoD Glasgow and West of Scotland region has been busy identifying opportunities for members and working to ensure we continue to deliver best value in all our activities. Recent events have included our Influencers’ Dinner where Gurjit Singh Lalli spoke to us about the TEDx Glasgow experience. Gurjit is the founder of TEDx Glasgow, part of the Global TED community which is devoted to sharing ideas through talks. We learned about TED and the global community that is devoted to sharing ideas through short talks, challenging attitudes and thoughts, thereby stimulating innovation, sparking conversation and leading to transformation.

 TEDx Glasgow was launched in 2012 to showcase the work, inspiration and ideas of people in Scotland and has a team of 52 volunteers. It has held 60 talks with over 9 million views. A number of IoD members have been privileged to have delivered TED talks and this continues to grow.

 Gurjit provided a superb insight into his career, together with its challenges and how he surmounted the hurdles and his aspirations as he continues to facilitate deep-seated changes in thinking and leadership. In October we were joined by Dr Stephen Breslin, Chief Executive of the Glasgow Science Centre, a five star attraction which plays a pivotal role in Scotland’s science infrastructure. Stephen was previously Chief Executive Officer of Futurelab Education, one of the most highly respected think-tanks and research labs in the world and he helped transform the organisation from Government-funded to revenue generating while maintaining the think-tank’s reputation and capacity for delivery of high quality, innovative and creative research in the educational technology space. Stephen has been a professional within the science and engineering industry for over 20 years, starting his career as an engineering consultant seconded to the Royal Navy at Clyde Submarine base, Faslane and Stephen took us on a fascinating trip as the Glasgow Science Centre was transformed. It now plays a key part in thought leadership and pioneers artificial intelligence and its impact on all our lives. It also embraces work

with young people. We were given an insight into what the future might hold and how Directors can lead during changing times. The Glasgow and West of Scotland committee is now looking to the future and we have a number of exciting events and developments planned for 2018. BTO Solicitors LLP are providing a lunchtime workshop focusing on what being a director means, ranging from common law and statutory duties through to whether a director can go to jail and what employment law and data protection issues can arise. Whether you are a new director looking to understand what being a director means or have a number of positions within your portfolio, this session will have a number of key practical takeaways for all delegates. We will also be announcing new initiatives designed to encourage members to engage with each other, to identify local and wider issues affecting members and to ignite debate, discussion and innovation. Our committee continues to look for new members, particularly in the IT and manufacturing spheres, and if you are interested in joining let me know. We exist to ensure excellence as directors and leaders in our field. I continue to meet new and existing members regularly and I’m committed to keeping this up to ensure we refresh our offering and offer the best outcomes for each of our members. Please get in touch. We are so lucky to have a rich diversity of talent and skills in Scotland. I look forward to working with you to keep the IoD at the top of its game in Glasgow and the West of Scotland and beyond. Here’s to a prosperous, peaceful and successful 2018 – Cheers!

“We exist to ensure excellence as directors and leaders in our field”.

06 Dec IoD Glasgow & West of Scotland Christmas Reception Venue: Dakota Deluxe Glasgow, Glasgow Time: 6pm-8pm Cost: Member and Guests £25 + VAT Non Members £30 + VAT Event manager: Ms Patricia Huth IoD Glasgow and West of Scotland invites you to our Annual Christmas Reception. Come along and join us for drinks and canapés in The Library at the Dakota Deluxe Glasgow. Dress: Business casual Programme 6pm Registration 6.30pm Welcome by David Hoey, Chair 6.35pm Networking – Canapés served. 8pm Close

18 Dec IoD Scotland Christmas Drinks Venue: IoD Scotland, Edinburgh Time: 6pm-8pm Cost: No Charge Event manager: Ms Patricia Huth

We would like to invite all our members and those interested in joining the IoD to our annual Christmas get together. Over drinks and nibbles, you will have the opportunity to meet other members, as well as the IoD Scotland team to celebrate the festive season. If you have a colleague or friend who is interested in joining the IoD please feel free to bring them along.

To book any event, visit www.iod.com/events-community 36

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

06 Dec

Boardroom Experience Workshop

Time: 8:45am - 2pm Venue: IoD Scotland, Edinburgh CPD: 3.5 hours Cost: Members + their guests £60 + VAT Non Members £80 + VAT Event manager: Ms Patricia Huth Join us at one of the IoD’s twice yearly workshops providing pathways to develop the pool of board ready men and women for executive, non executive and trustee roles in Scotland. You are invited to attend this half day workshop to network with current chairs and non-executive directors (NXDs), hear about their personal journeys and raise your profile among this community. It will be delivered by Caroline Donaldson of Kynesis.

25 Jan

If you are seeking a role on a board as a non executive director or trustee, or new to a Board and seeking to gain confidence to make you more effective in your role then this is for you! If you have already attended the role of NXD or Trustee course with the IoD then this fits as a pre workshop or your next steps to success. The content of this event comprises networking, a chance to hear how the IoD Board Shadowing Programme (including hearing from a speaker who has already participated) which could help you gain the skills needed to apply for a public appointment or any role as an non-executive. This event’s aims are: • To provide men and women with experiences that challenge their own skills and knowledge of being a non-executive board

Question Time Debate, featuring Opportunity North East

Venue: Doubletree by Hilton Aberdeen Treetops, 161 Springfield Rd, Aberdeen AB 15 7AQ Time: 12noon -2.30pm Cost: Members £33.34 GBP + VAT Non Members £33.34 GBP + VAT Event manager: Ms Patricia Huth Following on from a successful IoD Event in March 2017, IoD Aberdeen & Grampian in conjunction with local networking group Aberdeen Entrepreneurs, is delighted to work

with Opportunity North East again in what will be an exciting, though provoking and informative Question Time Debate. Chaired by Sir Ian Wood, the Debate is sure to be timely, lively and exciting. Opportunity North East (ONE) is a private sector-led body, focused on ensuring a sustainable economic future for North East Scotland. It was funded with an investment of £25m over five years from The Wood Foundation and is the private sector partner in

member and help them think about their on-going personal and director-level development • To provide board-ready men and women an opportunity to showcase their board skills and raise their non-executive profiles • To provide Chairmen/non-executives and senior-level men and women with an opportunity to meet in a different setting and to make connections they may not have made otherwise • To provide useful feedback to delegates and potentially offer board “shadowing” opportunities Coffee, Tea and pastries on arrival from 8.45am and a light buffet lunch will also be provided at 1pm with time to network at the end.

Sir Ian Wood

the Aberdeen City Region Deal, alongside Aberdeen City Council and Aberdeenshire Council. Event agenda 11.30 - Noon: Soft drink on arrival and Registration followed by Networking Noon-12.30pm: One course lunch and tea / coffee 12.30 – 1.45pm: Question Time Debate Chaired by Sir Ian Wood 1.45 – 2.30pm: Summary, thanks and close.

Mastering the Art of Strategic 08 Feb Questioning Venue: IoD Scotland, Edinburgh Time: 9am - 5pm CPD: 8 hours Cost: Member £310 + VAT (Early Booking Rate) £345 + VAT Non-Members £395 + VAT Event manager: Ms Avril Gall Questioning skills are the sine qua non of successful business leaders. In this highly interactive one-day workshop (9-5), you will learn a breakthrough questioning method that is steeped in investigative journalism, cognitive neuroscience and social

psychology. The method emphasises humility, finely tuned listening, empathy, and Eastern and Western perspectives on mindfulness – an ideal model for effective leadership and governance. This workshop will offer you a new way to think about and ask questions and features short video clips of interviews conducted by today’s top TV reporters and hosts in the US, UK and Canada to reinforce principles and techniques. Throughout the day, you will work in small groups on exercises and a case study that capture compelling scenarios faced by directors and trustees.

Our workshop tutor will be Dr David Steinberg. Dr Steinberg is a consultant and university lecturer specialising in advanced questioning skills for business professionals. Prior to starting his consultancy five years ago, he directed sales operations and account management processes in the US for a highly successful e-learning software-as-a-service start-up and for a Fortune 500 Corporation.

Left, Dr David Steinberg.

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37


IoD Scotland Events

20 Feb

27 Mar

Edinburgh

Glasgow

Professional Director Series: The NXD in Scotland Workshop Time: 9am-5pm Venue(s): Edinburgh: IoD Scotland Glasgow: SVS 200 Cost: Member £310 + VAT (Early Booking Rate) After that, £345 + VAT Non-Members £395 + VAT Event manager: Ms Avril Gall This workshop – to be held in both Edinburgh and Glasgow – will help improve your current performance as an NXD or help prepare you for the time when you may be appointed as an NXD. It is for individuals who are currently a non-executive director; those seeking appointment as a non-executive director and those organisations planning to appoint one. Over 470 delegates have successfully completed this workshop. You will receive extensive workshop notes and a certificate of attendance. There will be ample opportunity to share experiences and future aspirations. Workshop Content • What an NXD can bring to your board • What inputs NXDs can give to the board in different types of organisations and situations • An outline of the legal and ethical duties and responsibilities of an NXD • The qualities and experiences needed • Practical guidance on how best to secure an appointment as an NXD • An overview of the UK Corporate Governance Code and other relevant codes of governance • Detailed guidance on finding, selecting, appointing and rewarding NXDs The workshop is delivered by Michael Willis an advisor to a wide range of organisations in a variety of corporate settings in the public, private and charitable sectors. He has wide experience of improving the performance of boards and undertaking independent board evaluations. Delegates will receive a copy of his new book The Resilient Director – Building the Effective Board (2015).

27 Feb

Professional Director Series: The Chair Workshop

Time: 9am-5pm Venue: IoD Scotland, Edinburgh Cost: Member £310 + VAT (Early Booking Rate) After that, £345 + VAT Non-Members £395 + VAT Event manager: Ms Avril Gall

This one-day workshop explores the pivotal role of the Chair. Perhaps the single most important area within which a board can improve its effectiveness is how it is chaired. This requires two things to happen – the Chair leads the board and the understanding by the other directors of the rules of engagement. Have you ever noticed how good Chairs seem to effortlessly get through the business of the

06 Mar

board and yet ensure that everyone has their say? Have you noticed when you leave the board meeting with a sense of achievement rather than the nagging doubt that it probably was not the best use of your time? The ability to chair any meeting is an important facet in the development of managers; once appointed to a board there is more than likely to be a requirement to chair board sub-committees or lead the board itself at some time in the future. Too often the training in the art of chairing a meeting or leading a board is left to chance or learning by observing others. This course teaches you the skills you need properly.

Professional Director Series: The Apprentice Director Workshop

Time: 9am-5pm Venue: IoD Scotland, Edinburgh Cost: Member £310 + VAT (Early Booking Rate) After that, £345 + VAT Non-Members £395 + VAT Event manager: Ms Avril Gall This one-day workshop is designed for the newly-appointed, or apprentice directors who want to gain the basic tools to do the job. It outlines the role and legal responsibilities of a director and explores how the apprentice moves from managing to directing. It is important that all directors, on appointment, receive induction about their role and the significant duties and legal liabilities that go with it. Directors have a duty to exercise a standard of skill, care and diligence and this workshop will provide delegates with the know-how and insights to effectively fulfil and grow within the role. Workshop content • The legal duties of a director • The legal and regulatory environment • Company Constitutions • Corporate Social Responsibility – its width and its relevance • Relationships with shareholders and stakeholders, including use of social media • Board structures and organisation • Contributing at board meetings • Relationships with the chair and the non-executive directors • Board decision-making • Understanding strategy and risk including cyber risk

• Director contracts and removal of directors • Director and board evaluation Workshop benefits Help improve your current performance as a director and help you prepare for your first appointment to the board. Opportunity to network and learn from the experiences of other delegates. All delegates will receive a certificate of attendance for CPD purposes and extensive workshop notes. Who should attend Individuals who are currently directors and those about to be appointed to a board. Those individuals who want to further professionalise their role and improve their contribution at board meetings Workshop tutor The workshop is delivered by Michael Willis who is an advisor to a wide range of organisations within a variety of corporate settings in the public, private and charitable sectors. He has acted as tutor on a number of IoD workshops including The Role of the NXD, The Role of the Chair, Winning Board Behaviours and The Director and the Law. Delegates will receive a copy of his book, The Resilient Director – Building the Effective Board.

“This workshop will provide the know-how to effectively fulfil and grow within the role of being a director’

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