Iod west midlands spring by Rob Beswick

West Midlands www.iod.com

Spring 2014

Director of Year Awards: Nominees announced

Sandhurst in 48 hours Young IoD plans joint Army event that will change your concept of leadership forever

A rise Sir Richard? We’ve frozen our Anytime Return fare, unlike Virgin Trains.

Anytime Return to London now 42% cheaper than Virgin.* *£164 Anytime Return fare applies on Virgin Trains from Birmingham New Street or Birmingham International to London Euston vs £95 Anytime Return fare from Chiltern Railways from Birmingham Moor Street, Snow Hill, Solihull or Warwick Parkway to London Marylebone.

chilternrailways.co.uk/mainline

Regional Chairman

Awards highlight the genius of West Midlands business

t is only right that I kick-off this issue by pointing you in the direction of our coverage of the forthcoming Director of the Year Awards. As you will see from page 12, our nominees have been announced – and they make for a very impressive line-up. We saw a rise in nominations this year, but it hasn’t just been a case of quantity; quality has risen, too, with some outstanding stories emerging from the nominees’ CVs and application forms. The awards nominees reflect the very diverse nature of business in this region, with traditional family firms rubbing shoulders with hi-tech manufacturing. Whoever wins will have come out of a superb group, and should be justifiably proud of their achievement. I am looking forward to helping present the awards themselves at our special Champagne breakfast at Warwickshire CCC on June 5; I hope to see as many members there as possible to enjoy the occasion with me. The nominees’ success comes on the back of an economy which is sending out more and more positive signs. Productivity and investment are up and while there is still a lot of hard work to do, the enterprise and resilience of West Midlands’ businesses have got them through the darkest of days. Recent IoD events have shown the way forward: we have a number of hi-tech clusters of emerging industries in the region, based around key sites such as the universities and hospitals. Businesses are tapping into the talent pools on offer and these firms are growing. Our visit to the Warwick Manufacturing Group (see page 5) outlined just how these collaborations between public-funded and private sector bodies can work. Let’s be clear: we are not out of the woods yet, but as long as we make the most of our ‘natural’ resources – our splendid, hard-working and entrepreneurial people – we will see the West Midlands economy grow further in the coming years. What’s important, however, is that we take seriously this commitment to make the best use of all our people. The current

debate over the gender imbalance in our boardrooms proves there is a problem somewhere in British business, and it is something the IoD is keen to tackle. As you will read on pg 31, we are putting in place a new strategy through which we hope to help female business leaders become the directors they deserve to be. We are well beyond the time when boards should be better balanced. Directors should be drawn from the talent pool of the very brightest – of all sexes, colours and creeds. If you have the right skills and attitude, the job is yours – regardless of your personal make-up. Perhaps what is needed is a change in attitude in the business world. We need more flexibility throughout the workplace to put the right people in the right jobs, and forsake the current focus on working punishing 80-hour weeks. In a similar vein, the IoD is keen to increase its own ethnic diversity. Our membership is currently underrepresented by ethnic minorities, and clearly that is something we need to tackle. Good leaders are good leaders, no matter what their background. There are certainly no reasons why someone from an ethnic minority cannot join the IoD and enjoy the benefits of doing so, and we will be working over the next few months to see if we can change this situation. Improving the position of women and ethnic minorities were two of my principal areas of concern when I took on the chairman’s role in the West Midlands, just over one year ago. That year in office has flown by; I’m pleased that as an organisation we have made significant progress. Continued on page 4

CONTACTS Chairman: Jason Wouhra e: jason.iod@eastendfoods.com t: 0121 359 2199

The Institute of Directors West Midlands membership magazine is published on behalf of the IoD by:

Regional Director/Editor: John Phillips e: John.phillips@iod.com; t: 0121 643 7801

Chamber Media Services, 4 West Park Road, Bramhall, Stockport, Cheshire SK7 3JX.

Regional Administrator: Sue Hurrell e: sue.hurrell@iod.com; t: 0121 643 1868

Advertising sales: Colin Regan t: 01925 292002 e: colinregan001@yahoo.co.uk Production enquiries: Rob Beswick, t: 0161 426 7957 e: rob@chambermediaservices.co.uk

IoD West Midlands: Eleven Brindleyplace, 2 Brunswick Square, Birmingham B1 2LP t: 0121 643 1868

Please note... Although every effort is made to ensure the accuracy of material contained within this magazine, neither the IoD 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 adverts in this publication does not constitute an endorsement of the products or services advertised. All articles within this publication are copyright IoD West Midlands. Editorial consent must be obtained before any are reproduced either in printed form or electronically. Cover picture: Leadership, Army style. Join the Young IoD on a weekend training course you’ll never forget with the British Army. For more details, see p20-21

IoD West Midlands Spring 2014 | 03

News Congratulations

The following members have recently passed their IoD exams:

Certificate in Company Direction: Simon Barnes Community Health Partnerships Ltd Mark Grinonneau Community Health Partnerships Ltd

Diploma in Company Direction: Benjamin Edward-Cox Alstom Power UK Ltd Gordon Farmiloe Care in Bathing Ltd Well done, one and all!

Regional chairman’s thoughts... Continued from page 3 I’ve been delighted with the way our new strategies are being implemented. Thanks to the hard work of John and Sue in the regional office our profile has risen and we are now, rightly, seen as the ‘go-to’ organisation for business leaders. I think over the past 12 months we’ve become more relevant and fleet-of-foot, capable of responding to events in a positive manner. A new member of staff will shortly be arriving in the head office to improve this position still further, and we will be promoting an increasing number of events throughout the region. One occasion when our profile was raised recently was by my own appearance on BBC TV’s Sunday Politics show, which was looking into the growth in ‘zero hours contracts’. The point I mad eon the show was that while we need to do all we can to encourage job creation in this country, there comes a point when human dignity and fairness have to be added into the equation, too. I can see no problem in using zero hours contracts for a short time, perhaps while

Follow IoD West Midlands on Twitter @iod_westmidland

getting used to a new team members and working out if they will fit in, but once that decision is made then employees need to be put on to a proper footing, with appropriate contracts and remuneration. There appears to be a number of companies using zero hours contracts on a permanent setting, which cannot be the fairest way to build a committed workforce – or healthy economy. Finally, I would like to pass on my good wishes to Francis Christie, who is stepping down as chairman of the Hereford and Worcestershire branch. Francis has been an outstanding servant of the IoD; his hard work has reinvigorated the branch and seen a number of high-profile events carried off successfully. It is thanks to people such as Francis that the IoD can represent its members so well, particularly at grass roots level. All the volunteers who devote their time and energy to working with the head office staff deserve our thanks, for without them, the IoD would be a diminished force. I am determined that throughout my term we will continue to see the IoD in the West Midlands go from strength to strength; with the help of our committed branch officials, I know we will continue to be the region’s ‘go-to’ business organisation.

New Flybe routes are good deal for business IoD West Midlands regional director John Phillips was on hand to help Flybe launch some of its new routes from Birmingham International Airport. He is pictured right advertising the airline’s new local route to Alicante with (from left) William Pearson, Birmingham Airport; Paul Simmons, Flybe; Paul Willoughby, Flybe’s regional sales manager; and Paul Noon, UKTI. John was delighted to be able to help. “Flybe has always had a big presence out of Birmingham International Airport but these new routes are a real commitment by the airline in our region. “The announcement of these new routes is timely as they will not just cater for tourist and leisure travellers but will take business people into the heart of some of Europe‘s most important business districts, too. As more West Midlands businesses look to trade overseas, Flybe’s new routes will make it easier than ever to access key markets.” The new routes have been dubbed the ‘Magnificent Seven’: they include new services to Florence, Italy; Cologne, Germany; the

04 | IoD West Midlands Spring 2014

important French cities of Toulouse; and Bordeaux, and the more traditional tourist destinations of Palma Mallorca and Porto. To support these routes, Flybe has added three of its 2x2 seat Embraer 175 jets to the airport thereby creating its biggest ever regional base with 12 aircraft. The additional routes have also created 50

new jobs at the airport. Paul Simmons, Flybe’s Chief Commercial Officer says: “Today’s news reinforces the increasing emphasis that Flybe is putting on its operations at Birmingham Airport. “We’re obviously delighted to offer these additional seven new routes and hope they prove popular with our customers.”

A recent visit to the Warwick Manufacturing Group (WMG), based at the University of Warwick, by IoD members of the Coventry and Warwickshire Branch highlighted the high level of technical excellence that’s right on our doorstep. WMG, supported by European funding, provides a free service to companies employing fewer than 250 people who require high-level technical support to improve their performance through innovation. Members were clearly impressed by the support on offer, with cutting-edge technology and innovative research all available to help your business progress its next big ideas or designs and plan for future growth. Following the visit regional director IoD regional director John Phillips enthused about WMG’s services: “This was a superb behindthe-scenes tour of an outstanding facility. Its work at the edges of hi-tech manufacturing needs to be seen to be believed.” One new area of WMG’s work was particularly impressive, said John. “For the first time I now understand properly the implications of 3D printing; it was great to learn that WMG will help use this technology for anyone wishing to produce a low-cost prototype for a new product. “I was also impressed to see on our visit how far battery technology is advancing to support future build of electric cars.” While WMG’s skills are clearly focused on assisting with hi-tech manufacturing processes, it can also help service companies with everything from improving marketing through social media to the use of mobile technology. For instance, award-winning local brewer Hobsons Brewery, based in Shropshire, has collaborated with WMG’s specialist SME team to develop an innovative tracking system

‘Outstanding’ facility in heart of the region that can track its beer barrels using smartphones. The brewery worked with WMG’s dedicated small business team based at the International Institute for Product and Service Innovation (IIPSI), which used its expert knowledge to track the barrels of beer and therefore manage its stock and distribution processes. A range of RFID (radio-frequency identification) products were assessed, leading to the decision to implement an NFC (near field communication) solution using a smartphone app and cloud database system to do the asset tracking. This solution allows for communication between different devices and allows Hobsons staff to monitor assets while on the road. A robust smartphone-ready NFC tag was developed to sit on the metal casks – though its development required considerable thought as it had to withstand harsh cold, wet and physical environments. With the tag technology in place, a proof of concept software application was built using Google’s platforms to visualise the location data gathered from the tags for the Hobsons Team users. The working prototype is now in use

Want to know more? For more information about how your business might benefit from working with the WMG SME team, email wmgsme@warwick.ac.uk.

Find my barrel: Hobsons now has a new system for monitoring its barrels, thanks to the technological know-how of WMG

and is being tested with 3,000 barrels to ensure that the product can be scaled up for wider use. So far the project has led to the creation of one new job in the company and there are plans for setting up a new division of the business that will facilitate the commercialisation of the new system. Nick Davis, managing director of Hobsons said: “This project has been a real learning curve for us and has opened up a number of new business opportunities. The capabilities in IIPSI have allowed us to test and prototype a concept that we could never have implemented ourselves.” Scott Crowther, technology transfer specialist at WMG said: “We are delighted that we were able to help Hobsons take their idea right through the prototyping, manufacturing and commercialisation stages. Our IIPSI programme is a blend of advanced manufacturing, digital and user experience skills that can solve a range of business process issues.”

News

Could your business benefit from significant cost reductions?

Cream of the crop: Some of the University of Birmingham undergraduates, keen to take on an intern position

Matt Roper, director of the Buying Support Agency (BSA), asks why so many SMEs lose out in the buying stakes

06 | IoD West Midlands Spring 2014

The arrival of a new career service at the University of Birmingham is good news for the region’s employers The University of Birmingham has a student population of approximately 28,000 undergraduates and postgraduates, including approximately 6,000 international students. It is making considerable investments to establish Birmingham as a leading global university, not in the least through its dedicated careers service, “Careers Network”. Careers Network recognises and supports the findings of organisations such as the AGR, AGCAS and High Fliers, whose 2014 report identifies that a record 37 per cent of this year’s entry-level positions are expected to be filled by graduates who have already worked for their organisation (“The Graduate Market in 2014”, High Fliers Research Ltd, 2014). The university works with a diverse range of employers, ranging from local SMEs to blue-chips and multinationals,

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developing bespoke roles for its students ranging from short-term shadowing through longer summer internships to year-long placements. A typical internship opportunity will last around three months, often during the summer vacation, frequently with a significant project focus and will be of considerable benefit both to the host organisation and the student. Furthermore, it collaborates with employers to develop internships for recent graduates, which may take place at any time of the year. Many of these graduate internships are eligible for match-funding of up to £1,500 from Santander, one of the university’s business partners, so the host only needs to pay half of the intern’s salary. Since August 2011, the university has promoted over 2,800 work experience opportunities to its student and graduate cohort. The impact has been enormous, both from the candidates’ perspectives and for the employers who have hosted them. However, there are ambitious targets for the future and the university is looking to establish new relationships with many more organisations, leading to further internships. IoD members interested should visit: www. birmingham.ac.uk/partners/employers/ index.aspx, email: internships@ contacts.bham.ac.uk or call 0121 414 6120.

Positive messages abound in the case studies we have collated from employers with whom we have worked and their candidates: “Why choose graduates from Birmingham University as opposed to other organisations? We have had positive experiences with them in the past and know that they produce students and graduates of outstanding quality.” (Nigel Platts, Director, Armada - Bromsgrove) “The internship so far has been fantastic and it has reassured me that this is the sort of area I want to be working in, in the future.” (Andrew Hicks, intern, Vaisala Ltd - Birmingham)

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Would you take a pile of £10 notes and set fire to them? I thought not. Yet, alarmingly, an awful lot of businesses practically do just that in the way they approach their purchasing. Apart from salaries, the biggest area of expense for most businesses is purchasing. In my experience, a sharpened focus on buying can reduce a business’s costs by as much as 20 per cent. What would be the impact on your business of even a 10 per cent saving on your total purchase bill? It’s obvious that SMEs are inherently disadvantaged in their ability to buy cost-effectively compared with the largest organisations. Yet all too many compound this basic handicap by ignoring some simple steps that can not only save money, but also produce a superior proposition for their customers. One key way of countering this weakness is to join a buying group, which provide the purchasing muscle of collective procurement. Virtually every business shares the same basic buying requirements of janitorial supplies, office stationery, power and telecoms. By purchasing collectively, businesses acquire the negotiating power of the biggest players – and lose some of the routine administration headaches into the bargain. The reluctance of many directors to explore this route is all the more surprising because the best buying groups allow you to try before you buy: you can get a real-time cost comparison to find out exactly how much you’ll save before you commit for the long term. IoD Procurement Services, provided by the BSA, offers members access to a Buying Group, free of charge. To date, members have saved up to 58 per cent across a range of overhead costs including stationery, office supplies, telecoms, gas and electricity, janitorial supplies, business rates, waste recycling, print, catering, workwear and packaging supplies. Additionally, members can also benefit from 10 per cent discount on purchasing consultancy and training services. To find out more and to start making savings, contact the BSA on 0845 555 3344 or visit www.iod. com/procurement.

Financial advice with

Has auto enrolment given you stage fright? Caroline Castle of Torquil Clark discusses auto enrolment and the requirements it places on you as an employer

With just the first half of the 2014/ 2015 tax year requiring 27,400* employers to auto enrol their employees into a workplace pension scheme, the new pension regime that the Government introduced from October 2012 is now reaching its momentum. It is now affecting the smaller employer, with April 2014 to April 2015 heralding its arrival for companies with between 50 – 249 employees. There are a number of local employers that have already reached their auto-enrolment date and are now managing the complexities of the ongoing requirements. So what pointers can be given to employers about to go on stage to avoid stage fright? Communications The initial assessment of the workforce into entitled workers, non-eligible job holders and eligible job holders, the ones you need to auto enrol, will be the easy part. What you need to understand is that each employee requires personalised correspondence, addressed to them within 30 days of your staging date. Furthermore, a replacement letter has to be provided should the analysis you undertake the next pay period indicate they have changed their status. There are template letters available on both the Pensions Regulator and Nest’s website but it will be down to you to understand which ones need to be issued and when. Postponement For employers on the brink of staging the option to postpone for up to three months

might be music to their ears. This option, however, does not mean simply putting the whole issue on the back burner for another three months. Immediate action is still required. If the postponement notice is not issued within 30 days of the staging date, the option is lost. Moreover, postponement is not without its own complexities as it can apply in three different scenarios, each of which should be assessed individually. • At staging • For new entrants • For those becoming eligible for the first time. Even when postponement is applied individual employees still have the right to opt in from day one and in advance of the postponement date. This right has to be communicated to them and in most cases if they want to join early they can, and this triggers the employers’ payment. This alters the whole demographics of the probationary period. Where an employer previously maintained a waiting period of six or 12 months before the pension scheme was offered, perhaps during the probationary period, this has to change. To meet their legal requirements any new monthly paid employees have to be auto enrolled on 1st of the month following completion of only two months’ service unless a part-payment is to be made. Needless to say this will have an impact on budgets. Communications to new starters will need to

Registration with the Pensions Regulator Once all the decisions about the above issues amongst others, have been made, registration with the Pensions Regulator is a further requirement and the timing for this is also determined by a combination of the staging date and the postponement elections. We are here to help As you can see, you will need plenty of time for rehearsal if you are to avoid stage fright when the big day arrives but Torquil Clark can support you every step of the way to ensure you achieve a polished performance. Contact Torquil Clark on 0800 408 2473. * www.thepensionsregulator.gov.uk n Consultancy Charges Apply. Torquil Clark is authorised and regulated by the Financial Conduct Authority.

IoD Auto Enrolment Service.

IoD members can benefit from 10 per cent reduction in the adviser fee for Auto Enrolment services (e.g. for the online solution, the fee of £990 +VAT is discounted to £891 +VAT for IoD members). For more information call 0800 408 2473.

IoD advice on flood precautions With the winter’s floods only just starting to recede from the memory, many businesses in the West Midlands are starting to come to terms with the horrendous damage caused and the impact the floods will have had on their insurance risk. If your property/premises has suffered from flood damage, if there is a history of flooding in your neighbourhood or you are

spell this out, too. This will encourage many who understand that employer pension contributions are part of their total remuneration package to take advantage immediately. They will then get used to their new salary with all the normal deductions rather than seeing a drop in their take-home pay, some time down the line, when the pension contributions start – a lot to be recommended. What this does mean is that employers will need to appraise the ongoing costs of Auto Enrolment to include any new employees and not just the auto enrolees.

within an identified flood risk area, it can be difficult to find insurance cover. The IoD is recommending a guide published by Defra (Department from Environment, Food and Rural Affairs) which provides information that aims to help you obtain cover. It explains how to get specialist help and what information you may be asked to give, provides tips on how to reduce the

impact of flooding and the last section of the guide provides useful information on key organisations – their responsibilities and contact details and relevant websites for further reading. Download the guide from the Defra website (see https://www.gov.uk/ government/uploads/system/uploads/ attachment_data/file/69578/pb13082-floodinsurance.pdf).

IoD West Midlands Spring 2014 | 07

IoD News

Birmingham’s business ‘hub’

Special offers on room hire

For details of discounts on hiring larger meeting rooms at 11 Brindleyplace, or to hire the Boardroom, contact Joanne Ness on 0121 600 5822.

“ work Why

with the IoD?

I wanted to thank you for organising what I believe was a really great event last Monday for our students and their mentors. Jenni has been inundated with emails saying what a valuable and enjoyable experience it was. Can I thank you on behalf of the Business School and our students for your support and for providing such a wonderful opportunity, I recognise the time and effort involved in both. Dr Anthea Gregory, Dean, Faculty of Social Sciences University of Wolverhampton Business School

08 | IoD West Midlands Spring 2014

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IoD West Midlands has now been in its ‘new’ home of 11 Brindleyplace for an incredible four years – and it is proving a popular base away from the office, or venue for small meetings, for our members. Regional director John Phillips said: “We located to Brindleyplace in June 2010. The area has become a new hub for business in the city, and its direct links to both the road network and rail services means its location has always proved popular with members. “The office is in a beautiful, award-winning building with the highest standards of design, pristine facilities and we will always strive to give our members a warm welcome. “The new base offers superb facilities for members. Remember, you can bring up to three guests free of charge and use the meeting facilities on the ground and mezzanine floors. “There is free Wi-Fi, and a choice of teas and coffees. Members receive a 20% discount on all food and beverages at the Hilton Garden Inn located directly opposite the Hub. Outside there is a taxi rank, plenty of car parking and a fantastic choice of restaurants on our doorstep. “If our members wish to be private there are excellent conference rooms available at competitive prices plus there is a special extra discount for IoD members.”

Army event is YIoD highlight in an exciting calendar by Paul Morgan Vice Chair, West Midlands Young IoD

he West Midlands Young IoD (YIoD) group is gaining momentum – and since our launch event late last year, plans are afoot for a busy 2014! We set out in the summer of 2013 with the goal of rejuvenating the Young IoD, and building a full and thorough support network for the region’s young directors – helping you to raise profile, increase your contacts, and strengthen your businesses. The goal is to increase engagement among members to create the most value-adding support network for young directors in the Midlands – forming a link with the “senior” IoD to facilitate mentoring and two-way communication between what might be two different generations of business leaders; and complementing the excellent work that John Phillips and the region are doing with the local universities, by facilitating a transition from undergraduate membership to the full IoD. On the agenda for this year are a complete series of varied events, all with the common intention of binding together the West Midlands’ brightest and most promising young directors – in a way that allows you to share ideas and become a more prosperous community. The initial plan this year is to lean towards Birmingham in our general activity, before widening the net beyond just the second city going into 2015. And your committee is very excited about the year ahead! Some of the events and activities currently pencilled in for this year will include: n A headline military event in late June, provided by the British Army. This will be our showcase event, and we’re planning to make it an annual one. The event will involve us spending two days with the British Army, learning their take on leadership as tested and refined in the most extreme conditions. It’s the equivalent of several years at Sandhurst crammed into 48 hours. No two ways about it – you will never forget this one, you’ll

Sandhurst training – in 48 hours! Our YIoD event in conjunction with the Army should be a real highlight. See page 20 for more details

make contacts for life, and you will be a better leader for it. Thrilling details to follow, sleep optional… (see page 20 for more details). n Early evening business workshops – we’re not convinced that younger directors want breakfast meetings! As such, we are looking to provide a handful of interactive, workshopbased networking meetings, at a more sensible time of the day! Those in attendance will make new connections and be inspired by valueadding content, in an informal but professional environment. n London Stock Exchange Elite Programme Launch Party – we’re really excited about this one. The LSE is looking to publicise its new “Elite” offering, a two-year value adding programme, helping businesses get ready for raising finance – a project that completely fits our vision of supporting local businesses in their expansion plans and wealth creation. So we’ll be throwing a launch party in the second half of the year to tell you more about it – it will be an event we’re sure will attract wide publicity and a packed room. n Social Events – perhaps once a quarter, perhaps more often, we plan to meet at different locations in Birmingham to support local venues with our custom, and to further strengthen our emerging support network for young directors – offering those in attendance the chance to make new connections in a

completely relaxed environment. The first one is on May 22 – see page 21 for more details. n Custom Website – we are developing a custom YIoD website, which will feature content relevant to our branch and be a great source of information for current and prospective Young IoD members. The site will go live in May, and will feature upcoming events, a blog and profiles of the members – as well as an area to register for mentoring, to enable us to link you up with a highly experienced and local successful business leader and mentor. We’re really excited about what we are planning for the next 12 months and beyond – and so if you want to be part of what we are planning, or know of a potential new IoD member who would like to be similarly involved, request further information from me at paul.morgan@youngiod.co.uk. Furthermore, many of the events will give rise to sponsorship opportunities, allowing those businesses involved to raise their profile amongst the vibrant young West Midlands IoD community – and so if you’d like to be involved, please contact me at the contact details below: Paul Morgan, Vice Chair West Midlands Young IoD t: 07528 327765 e: Paul.Morgan@sjpp.co.uk w: www.prmwealth.co.uk

IoD West Midlands Spring 2014 | 09

Black Country dinner

Prospects are soaring in the Black Country IoD members and their guests enjoyed a superb evening at Dudley Zoo for the 2014 Black Country dinner

he IoD held one of its most successful business dinners yet when Dudley Zoo and Castle hosted an evening on ‘Rebuilding the Black Country’s economy’. Every seat was taken and there was a real sense of optimism from both the dinner guests and our keynote speakers – who all claimed ownership of the best job in the world! The linking theme between the speakers was to explore how different sectors of the economy are inter-related and how co-operation can lead to a stronger business community. First to speak was our host for the evening, Peter Suddock, the chief executive of Dudley Zoological Gardens and Castle. As last year’s winner at the IoD’s Director of the Year Awards in the Not-for-Profit category, Peter was the ideal choice to talk about the importance of leisure and tourism locally in the West Midlands. It was clear from his address that Peter is passionate about animals, bio-diversity and supporting education but he does so with a businessman’s acumen: over the years he has transformed the zoo into what is now a successful and profitable business. Peter emphasised the importance of tourism to the economy, both as a draw to visitors and as a way of ensuring skilled people are attracted to the area and encouraged to stay, for example, in

the case of Jaguar Land Rover, which is currently recruiting engineers. Peter was followed by Simon Warren, chief executive of Wolverhampton City Council. Prior to working in local government Simon was a pilot and senior officer in the Royal Air Force. Simon spoke about the role the council played in attracting Jaguar to Wolverhampton and his passion for creating a more businessfriendly approach. Additionally Simon emphasised the importance of encouraging more young people into engineering to plug the UK skills gap. Finally, we heard from Trevor Leeks, operations director for Jaguar Land Rover’s new £518 million engine plant on the i54 business park. Trevor gave us an update on progress at the plant, located just 10 miles from Wolverhampton’s town centre. The company began its recruitment programme in January, for 600 manufacturing workers; by the time of the dinner the company had received over 9,000 applications.

Currently around 200 staff are working at the plant, installing and setting up new production line equipment with the aim of producing the first engines in the first half of 2015. He explained that JLR aimed to transform the way engines are manufactured, with the aim of producing an engine every 36 seconds at the plant over the next four to five years. When fully staffed 1,500 people will be employed at the factory, with many more jobs created in the supply chain. The vote of thanks was given by Paul Noon, West Midlands Regional Director for UKTI. Claiming he also had the best job in the world, he congratulated JLR on their incredible export success and reaffirmed his support to the IoD locally in supporting any of our members who may be looking to expand into foreign markets. The IoD wishes to express its thanks to Dudley Zoo and Castle for hosting this event. IoD Regional Director, John Phillips said: “We had forgotten what an excellent corporate venue this is, particularly with the ambience of the castle.”

Our thanks: From left, Ian Priest (IoD Black Country branch chairman), Peter Suddock (CEO Dudley Zoological Gardens and Castle), Jason Wouhra (IoD West Midlands Chairman), Simon Warren (Chief Executive Wolverhampton City Council) and Trevor Leeks (Operations

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Pictured from top left, clockwise: Dudley Zoo’s Pam Midwood introduces one of the zoo’s exhibits to Chris Smith and Deb Lawrence; guests enjoying a pre-dinner drink included Stephen Peak, Paul Wynn, Jackie Casey; (centre pic) Jill Hitchman and Major Tim Carpenter-Balmer; Stuart Corr and Alison Tucker; Paul Adams, Jamie De Souza, Tim Jones and Tim Magee; and Dee and Neil Cutler with Simon Fox (above)

On display: Two of the latest Jaguar models greeted guests arriving at the Queen Mary Ballroom, Dudley Zoo

IoD West Midlands Spring 2014 | 11

IoD West Midlands Director of the Year Awards

IoD has region’s best directors in its sights Venue: 1882 Suite, Edgbaston Stadium Warwickshire CCC, Birmingham B5 7QU Date: Thursday, June 5 Time: 0730-10am Price: £35+VAT

(book online at www.iod.com/wmidlandsevents)

Tables of 10: £315 + VAT

(contact Sue Hurrell at sue.hurrell@iod.com to book tables)

HE judges’ decision is final: on the next few pages we reveal the men and women who are in contention for the IoD’s prestigious Director of the Year

Awards. As in previous years, our judging panel has been hugely impressed by the high quality of nominations, with directors and other business leaders from across the region submitting their details and CVs for our consideration. After some intensive scrutiny, the judges have whittled the list of candidates down to just 15, who are now all in the frame to take home one of our coveted awards. And you can be there to see the winners receive their awards. Join us at a special Champagne breakfast on Thursday, June 5 at Warwickshire CCC’s Edgbaston Ground, where we will reveal the Directors of the Year in the following categories: n Large category (over 500 employees) n SME n Family Business n Not for Profit n Corporate Social Responsibility n Young Director (under 42) In addition, there will be an overall Director of the Year award, which goes to the nominee who has shone brightest within the business

Main sponsor

community. Our awards are actively supported by some of the region’s largest organisations. Our main sponsor is once again the University of Wolverhampton, which actively supports our drive to reward and recognise directorial excellence and good governance, and celebrates business success. In addition, the awards are also being supported by UKTI, Jaguar and Chiltern Railways and Wesleyan Assurance. Success at our regional awards are a platform for national success. The six awards categories link in with the national IoD awards, and our winners will be nominated to the national finals, which take place in the autumn of 2014. In previous years West Midlands’ directors have done very well in the national competition, with Craig Errington, CEO of the Wesleyan Assurance Society, the Director of the Year in 2011, while last year Dean Walton of Alumet was named UK Director of the Year for Leadership in Corporate Social Responsibility. Receiving such national recognition is a testimony to the quality of the West Midlands’ business leaders, said IoD West Midlands’ chairman Jason Wouhra. Jason, a previous nominee in the awards, pointed out that not

only is there a great deal of personal satisfaction to be gained from winning the awards, they can play a major role in raising the company’s profile too. “Our award winners will receive a huge amount of publicity, both through the IoD and the regional media. It is a title you can use to demonstrate your expertise and showcase the growth and development of your business, and how you apply the strictest forms of corporate governance to your operations.” “It shows the strength in depth of this region’s leaders of industry.” “We were looking to keep the success rolling with this year’s awards and looking through the list of nominations that’s clearly the case. Our nominees are truly inspiring.” The event will be compered, as last year, by Arti Halai, local broadcaster and director of Fleet Consulting.

Book your place now at this unique event. Congratulate the winners and toast their success at our Champagne breakfast awards ceremony.

To be at the awards ceremony, go to www.iod.com/wmidlandsevents

Awards category sponsors

12 | IoD West Midlands Spring 2014

Award nominees Andrew Cole n Touchwood Centre

After 20 years as a hotel general manager, Andy made the switch to shopping centres and has successfully managed the challenge, ensuring the Touchwood Centre in Solihull is a thriving destination in difficult times. He combines his role there with that of being the Chair of Solihull BID, as well as creating and running a ‘Blood Bike’ charity.

Fay Goodman n Drivesafe & Staysafe

As well as being MD of award-winning media production company Goodmedia, Fay is a director of DriveSafe & StaySafe Partnership, a social enterprise non-for-profit company aimed at raising awareness of road safety and personal safety. Borne out of Fay’s concern for people’s safety in all walks of life, whether at work, home or travel, the organisations were originally run through Goodmedia but became standalone organisations in 2011. Since then they have championed safer behaviour, particularly on the road and among business car drivers.

Andrew Cole

Fay Goodman

Rob Halliday-Stein n BullionByPost

Rob is the founder and MD of BullionByPost, the UK’s leading online bullion dealer supplying gold and silver bars and coins directly to members of the public through the post. He founded the company in 2008 with just £10,000 after spotting a gap in the market when he was put off from investing in precious metals by the nature of existing dealers. With a background in e-commerce he bought direct from refiners, selling to the public. Today, BullionByPost has handled more than 57,000 deliveries, and in 2012-13, sales hit £87million. The company is forecasting turnover exceeding £120million next year.

Tim Jones n Higgs & Sons Rob Halliday

Tim Jones

James Leavesley n CrowdControlHQ

A successful businessman with a career spanning international and domestic companies, James set up CrowdControlHQ in 2009, the leading social media risk management and monitoring platform. The business helps large enterprise brands to defend their reputations across the vast array of social media environments found online today. Its profile was elevated considerably during the Birmingham riots when police forces across the country began to realise the power of social media in connecting trouble hot spots across the country. Today, CrowdControlHQ is used by 25% of UK police forces.

Tim Jones is the head of the employment team at lawyers Higgs & Sons. His professional work includes all employment-related disputes, and he has been described in Chambers Legal Directory as someone who “commands respect” for his “phenomenal employment law knowledge and advocacy” and is a “walking encyclopaedia on employment law” – but crucially, one “who understands how business works.”

Jason MacKenzie n Liquid PR

Jason is managing director of Liquid, an award-winning UK ‘Top 150’ public relations consultancy. He’s also a visiting lecturer in PR at Birmingham City University. Highly skilled and qualified in both strategic marketing and PR, he is a Chartered Marketer and a Fellow of both the Chartered Institute of Marketing (CIM) and the Chartered Institute of Public Relations (CIPR). He serves on the national Council of the CIPR and has addressed conferences in Mexico and Poland on the subject of integrated communications. Jason takes a keen interest in all things USA-related and is a Fellow of the British-American Project.

James Leavesley

Jason Mackenzie

IoD West Midlands Spring 2014 | 13

IoD West Midlands Director of the Year Awards

Award nominees Nominees: from left, Graham Pain, Melanie Palmer and Dale Parmenter

Graham Pain n Cleobury

Graham has worked in the family partnership for 25 years. Initially a farming business, Graham, along with his brother, Rob, diversified by converting redundant buildings into business units. In 1993 the business further diversified into golf, starting with a nine-hole course, later extending it to 27 holes with self-catering holiday lodges. In recent years efforts have concentrated on sustainable growth by improving service levels, reducing costs through energy efficiency including installing a biomass boiler and developing strategic partnerships with golf clubs and training providers such as Birmingham University.

Melanie Palmer n Solihull BID

Melanie is a pragmatic, resourceful and seasoned professional and has brought a fresh energy and vision to Solihull BID and its nine-strong team. She has been Instrumental in creating a more cohesive approach within the town centre and developing a new strategy. Melanie has developed partnerships with key stakeholders/levy payers, secured commercial sponsorship and delivered a creative business plan that has improved transport, accessibility and the safety and security of the town centre. She is now leading the Solihull BID plan for another five years.

solutions, from live events solutions to video, web and mobile app development, design and print, and full communication strategy creation. Dale is actively involved with key corporate clients, who find his wealth of experience and knowledge invaluable in creating solutions that are bespoke to an organisation and are effective, always delivering on the bottom line.

Ann Rivera n Trident Social Investment Group Ann fulfills a wide-ranging role at Trident, as its director of organisational development, with responsibility for the HR function incorporating both the housing association and the charitable arm, as well as ICT, business performance, customer service, communications and PR, among many. Her professional manner and attention to detail means this third sector body has a management structure of a quality to match any private sector body, with robust performance indicators and deliverable targets. Ann is also chair of Welcome, a

charity that supports individuals rebuilding their lives after drug and/or alcohol abuse, and WISH Midlands, a network and career development group for women in the Housing Sector, both private and public.

Helen Thomas n Westons Cider

The great-granddaughter of the founder of Westons Cider, Helen has delivered superb growth during her 18 years as MD, growing the company by 11 times. She is very aware that this independent, family-owned business is reliant on its people and its commitment to them and the rural community is key to its future. Helen operates an ‘open-mind’, ‘open-door’ approach, loyalty and commitment have resulted in strong, measurable financial growth, positioning us well for future generations. She is particularly proud of ‘Westons Academy’, which drives the company’s ‘Excellence in People Development’ programme. Her forefathers would be proud too, as the principles of quality, heritage and tradition underpin all Helen does to maintain the company‘s unique business position.

Dale Parmenter n drp group

Dale founded the drpgroup over 30 years ago, operating at first from a small outbuilding at his parent’s home. Today it is one of the UK’s leading creative strategic and communication production companies, with over 100 specialists based in two locations in Worcestershire and London. The business offers a range of communication

14 | IoD West Midlands Spring 2014

Awards media partner

Ann Rivera

Helen Thomas

Working together, for a common purpose

Luke Verrall

Kevin Watson

Luke Verrall n Newtown Packaging

Luke has overseen a continual development of the business, making it profitable, more professional yet keeping a close eye on its commitments to both its staff development and the company‘s impact on the environment. Waste has been reduced and steps made to curb energy use in production. Significant changes to the workforce have not stopped the company creating a genuine team spirit that supports and rewards good performance

Kevin Watson n Amadeus (NEC)

Kevin joined the NEC Group in 2011, initially as operations director then as managing director of Amadeus. As one of the UK’s fastest growing venue and events caterers, his role sees him leading an exciting and thriving company that is going from strength to strength. Having helped shape Amadeus through a period of rapid growth, Kevin remains keen to continue to drive change across key areas of the business. Before joining Amadeus Kevin had over 20 years’ experience of retail contract catering and brand building, with roles at The Natural Retail Company, AEG and Compass Group PLC.

Michelle White n Pertemps Recruitment Partnership

Michelle White has helped Pertemps Recruitment Partnership (PRP) grow in stature in the 20 years she has been with the business, managing many of the company’s largest and most profitable contracts. Pertemps is now one of the largest independent recruitment agencies in the UK, boasting more than 100 branches across the UK, each operating across a multitude of sectors and supplying diverse roles. Michelle was responsible for creating Pertemps’ Recruitment Process Outsourcing (RPO) centre, which has serviced many campaigns and clients.

Andrew Wilkinson n Oakley Wilkinson Bryan Ltd (OWB)

Andrew is MD of OBW, a leading independent Birmingham-based advertising and marketing communications agency, with responsibility for developing marketing strategy with clients across all elements of the media mix, from new media to direct marketing, advertising to brand development. Andrew drives creative and design direction and directs the outputs from the agency team to ensure all goals are met. Andrew is accountable to the board for business development and has been instrumental in driving and developing the OWB brand and it’s varied and enviable client-base.

Michelle White

Andrew Wilkinson

Common Purpose, an international organisation that runs courses aimed at developing better leaders, is one of this year’s Director of the Year Award sponsors. Louise Teboul, Midlands operations director said: “We are delighted to be supporting the IoD West Midlands Director of the Year Award, by offering a place on Meridian, our senior leaders’ course, for the overall winner. “For 25 years now, we have been developing the skills of leaders by giving them the connections and insights to make a difference to their own development, their organisations and the places in which they operate. “This is an exciting, but challenging time to be a leader and we are constantly innovating to ensure we reflect reality in our courses. We will soon be launching a new book about cultural intelligence (CQ), as we believe this is going to become more important for leaders than every before. “Organisations often appoint leaders for their IQ; then, years later, often challenge them for their lack of EQ (Emotional Intelligence). Common Purpose argues that in the future they will promote for CQ. “Leaders, as they learn to lead beyond their authority, need to be able to cross boundaries: between east and west, and north and south; between faiths and beliefs; between public, private and third sectors; and between generations. Our courses – and our international and diverse alumni network – can help people do just that. “The Meridian course provides a fantastic opportunity for professionals to meet with leaders from other sectors and explore a wide range of issues affecting the city and region. “Based in real-life, and experiential learning, the broad variety of experiences and challenges on offer allow attendees to develop the skills, contacts and knowledge required to become an effective leader. The course also complements traditional management or academic training and is often referred to as a ‘street-wise’ MBA. “By bringing together a diverse group, individuals are challenged on a personal and professional level, which also helps them and create new peer groups and creates a safe place to share both ideas and challenges. “As an international organisation, completing a Common Purpose course also provides graduates with a truly diverse network of alumni, many of whom are in leadership roles across the globe. This is an invaluable resource in fast-changing and global times. “I am delighted that we can support the work of IoD in the West Midlands and I’m looking forward to working with the overall winner, in the future,” concludes Louise. For further information on Common Purpose and its range of skills and leadership courses, visit www.commonpurpose.org.uk or email louise.teboul@commonpurpose.org.uk.

IoD West Midlands Spring 2014 | 15

IoD Events diary

Looking to sell - then start preparing for the day Are you planning to sell your business, now or in the future? Date: Time: Venue: Cost: CPD:

Tuesday, May 20 07:30-11:00 am IoD Hub, 11 Brindleyplace, 2 Brunswick Square, Birmingham B1 2LP Free of Charge 3 hours

achieving the best price n Why most companies undersell n Why traditional valuation is fundamentally flawed n The essential 2.5X rule n How to find overseas buyers n Competition: How to identify a choice of buyers and use that choice to maximise value n Getting ready to sell n 5 essential steps to selling

This inspiring and informative half-day seminar is designed to give you all the advice you need About the speakers to sell your business for maximum value, David Rebbettes FRSA is a founding whether you are looking to sell now, or at Director of BCMS Corporate, a UK some point in the future. You may simply market leader in its chosen area of wish to explore all available options – expertise. BCMS now sells more and this is an ideal first step. The BCMS companies than any other seminar qualifies for three hours’ CPD, comparable advisor in the UK, and all attendees will receive an and has offices across five exclusive exit planning continents. BCMS is a information pack.BCMS is UK-based family the UK market leader, by business, and a deal volume, in the sale of past winner of privately owned businesses. the ‘Coutts Bank The seminar draws on Family Business of experience from over 500 the Year award’. completed deals in the last Over the past two decade, and covers the decades, David’s following key topics: company has challenged n Eight critical factors to David Rebbettes – and changed – traditional

assumptions about the sale of privately owned businesses. Drawing on his vast commercial experience, David’s thinking has inspired business owners and shareholders at industry events across the globe. David Oliver, MCIM, is a renowned author and speaker. David has written 11 acclaimed books, including The Sunday Times publication How To Negotiate Effectively. His most recent work, I Sold Up, examines the issues that face business owners and shareholders during the sale process. David has personal experience of selling a business, having undergone two company sales of his own. BCMS takes confidentiality very seriously. There are no name badges and no delegate lists on the day.

David Oliver

White collar theft: it’s still theft Date: Time: Venue: Cost: CPD:

Thursday September 25 07.30-9am Lanyon Bowdler Solicitors, Chapter House North, Abbey Foregate, Shrewsbury SY2 5DE Free of Charge 1 hour

This should be a fascinating seminar on a very worrying subject: investigating not only the methods and reasons for theft and fraud from a company but how you can investigate it lawfully, It will cover techniques and equipment, covert vehicle and asset tracking, interviewing and the benefits of computer data retrieval. To take us through this very complex topic we have an acknowledged expert: Dave Kearns, managing director of Expert Investigations. Dave will lead this interactive seminar and examine case studies and live cases in an

16 | IoD West Midlands Spring 2014

informative and eye-opening manner. A former Warwickshire Police intelligence officer, Dave set-up Expert Investigations over 13 years ago to specialise in providing proactive confidential investigations into issues such as theft, fraud, false absenteeism, and employment issues including breach of contracts and restricted covenants, among others. It’s estimated that £9.1billion is lost each year to SMEs through fraud, which averages at £4,000 per company, per year*. Yet many businesses take no action at all to combat this. Why is that? Often it is because it is time consuming, there are many other pressures to contend with, and in addition there is the uncertainty of how to tackle such a sensitive issue. This seminar will show you how to go about it. To book: online at www.iod.com/WMidlands

To book: online at www.iod.com/ WMidlandsevents or contact Sue.hurrell@iod.com

*(Source: Federation of Small Businesses [FSB 2013])

In London? Then drop in for drinks with the IoD at Pall Mall IoD New Members Evenings at Pall Mall Dates: Thursday, 22 May; Thursday, 26 June; Thursday, 24 July; Wednesday, 24 September; Wednesday, 22 October Venue: IoD Head Office, 116 Pall Mall SW17 5ED London Time: 5:30pm-8:30pm: Drinks reception, canapés and networking throughout the evening. Schedule: 5:45pm-6:15pm: Professional Development presentation (optional)

Schedule (continued) 6:15pm-7pm: Group Tours (optional) 7pm-7:15pm: Membership Team Presentation - How to gain the most from your membership New members are invited to take a tour of the IoD’s prestigious offices in central London, meet fellow members from around the UK and enjoy a post-work drink with fellow directors at this free event. The event will begin with a drinks reception and canapés at 6pm and will have concluded by 8pm.

There will be a short presentation explaining how to make the most of your membership and the team will be giving tours to familiarise you with the buildings. You will also have the opportunity to meet your fellow members. There is an optional short presentation provided by our Professional Development Department, designed to show you how we can assist you in your personal continued professional development, which begins promptly at 5.45pm. To book: email: emily.duncan@iod.com

Enjoy the fruits of the season

Behind the scenes tour, S&A Fruit Farm Date: Wednesday, June 11 Time: 5.30pm-8pm Venue: S&A Produce, Brook Farm, Marden, Hereford HR1 3ET Cost: £15 + VAT members; £20 + VAT non-members CPD: 2 hours

To book: online at www.iod.com/WMidlands events or contact Sue.hurrell@iod.com

We are pleased to announce a visit to S & A Group, a leading UK-based grower, packer, importer and exporter of quality soft fruit and asparagus. S & A Group is a third generation family-owned business with over 60 years’ fresh produce experience, and is the largest independent specialist strawberry grower in the UK. S & A Group supplies top multiple retail customers across the UK and mainland Europe. Its mission is to be at the forefront of the fresh produce industry, supplying premium quality produce at competitive prices that delight their customers. It is an ethically and environmentally responsible company. Their product portfolio includes an all-year round supply of fresh strawberries, blueberries, blackberries and raspberries; and seasonal British asparagus to some of the largest multiple retailers in the UK. Customers include Tesco, ASDA, Morrisons, Lidl and Aldi. S & A Group also exports produce to selected international customers throughout Europe and beyond. Each year they produce around 7,000 tonnes of British strawberries from 90 hectares of polytunnels and over 17

hectares of glasshouses. The company also grows around 300 tonnes of British asparagus. During our visit we shall learn from Jan-Willem Naerebout, group operations director and Trevor Gregory, finance director, why John Davies, one of the first pioneers of modern strawberry production in the late 1990s, decided to diversify from potatoes into growing quality soft fruit, and how his pioneering approach has resulted in S & A becoming a major supplier direct to the retail market – unlike most other soft fruit growers. Following the presentation there will be an opportunity to tour the facilities.

Event programme

17.30 Arrival, light refreshments and networking 18.15 Presentation by Jan-Willem Naerebout, Group Operations Director and Trevor Gregory, Finance Director 19.00 Tour of facilities 20.00 Depart

Date for your diary: September 25, IoD tour of Ragley Hall Estate and Hall. IoD West Midlands Spring 2014 | 17

IoD events diary

Martyn Wallace

Digital needs a strategy if your business is to make it work What is your digital strategy? Do you even have one? Date: Time: Venue: Cost: CPD:

Thursday June 19 7:30 – 10:00 am Futures Gallery, Thinktank, Millennium Point, Curzon Street, Birmingham B4 7XG Free of Charge 1 1/2 hours

As people increasingly communicate, consume and transact online, they also expect to be able to work in a digital way, where the traditional barriers of physical location, geography and even language are lifted. How ready is your business to embrace this trend and enter the digital age? Having a clear digital strategy, where businesses create a unified and collaborative architecture across all departments to achieve a common goal, is now becoming essential in business today. In this seminar we will discuss the need,

18 | IoD West Midlands Spring 2014

process and benefits to moving to a digital infrastructure, and how businesses like yours are: • Moving from traditional hardware to Cloud-based software and realising the cost benefits of an OPEX-led model. • Embracing smarter working techniques to boost productivity and workforce efficiency. • Future proofing their business through scalable technology • Better attracting and retaining customers and the new digital generation of employees. • Using examples of other businesses as well as their own experiences, the speakers will give clear and simple steps to help you along the digital journey, build a robust digital strategy and prepare your business for the future. Speakers include Martyn Wallace, Head of Digital Sales - Enterprise, Telefonica, and Leon Rudd, Head of Business Marketing, O2. As Telefónica O2 UK moves towards its goal

of a true Digital Telco, Martyn Wallace is responsible for taking the full Telefónica Digital portfolio to market in the UK. He works with O2’s Private, Enterprise, Public Sector and Passenger Services Channels and helps promote business benefits in products and solution within Machine to Machine (m2m,IoT), Cloud Services, Mobile Enterprise Application Platforms (MEAP), Big Data and Managed Security Services as well new emerging products and Technologies which Telefonica are developing and bringing to market. He was voted as one of the Top 100 influential people within Scottish Tech in 2013 Leon Rudd has over 20 years’ commercial marketing experience across B2B, B2C and B2G, Leon has played a huge role in delivering growth, business change and creating innovation whilst working for blue chip names in the pharmaceutical and IT sectors. Leon has strong multi-disciplinary and cross functional marketing and sales experience and has excellent insight into how marketing can help a business achieve success and growth. To book: online at http://www.iod.com/ WMidlandsevents or contact Sue.hurrell@ iod.com

New members summer drinks event Summer Drinks Date: Wednesday July 16 Time: 6pm-7.30pm Venue: IoD Hub, 11 Brindleyplace, 2 Brunswick Square, Birmingham B1 2LP Cost: Free of Charge Join us for a new members’ evening networking session and relax with a cooling drink after what will have been – we hope – a long hot summer’s day. No charge, just a simple occasion where you can network informally with your fellow IoD members. Let us know if you can come: To book: online at www.iod.com/ WMidlandsevents or contact Sue.hurrell@iod.com

Bearing up: The Bears celebrate - but will they take the spoils in the T20 derby?

Exciting cricket knocks ’em for 6 Worcestershire Rapids v Birmingham Bears, T20 match, Date: Friday, June 20 Time: 5.30pm Venue: Worcestershire County Cricket Ground, New Road, Worcester WR2 4QQ Cost: £35 (£29.17+ VAT) Come and join your IoD colleagues with family and friends in the Watershed Marquee Bar to enjoy an exciting evening of T20 cricket as we watch Worcestershire Rapids take on the Birmingham Bears. The evening, organised by the IoD Hereford and Worcestershire branch, has an Indian theme, with a free Cobra beer, chicken tikka masala and Bhangra dancers and Bollywood to entertain us, as well as the cricket itself. For those who wish to continue networking after the cricket, your ticket includes VIP entry into Sin after the game and entry to Bushwackers.

Crisis? Put the kettle on: From left, David Battisby, Stuart Squire, Chris Piggott and Keith Beech outside the offices of event hosts Lanyon Bowdler

How to handle ‘unexpected’ news and deflect a crisis The problem of how to maintain a good reputation is one that has bedevilled many a sound business over the years, with companies as varied as Ratners, Tesco’s and Pret a Manger all finding themselves under the media spotlight for the wrong reasons. That’s why crisis comms expert and former BBC journalist Keith Beech was asked by the IoD to lead a topical event on the right way to handle a crisis. Hosted by Lanyon Bowdler Solicitors, Keith looked at the importance of preparing for a crisis, the lessons that had been learnt from others’ mistakes and the crucial role that intelligent listening plays in safeguarding your business’s reputation. With the horsemeat scandal still vivid in most peoples’ memories, it was no surprise that Keith homed in on that particular controversy. What was interesting, he said, was the lack of importance some companies gave the story when it was first broken, and that they were made to look increasingly foolish as the tale of ‘unexpected items’ being found in frozen and pre-cooked meals escalated day after day.

He also highlighted how Pret a Manger’s reputation had been dented when London Mayor Boris Johnson commented that he had walked into one of their outlets in London and there wasn’t one English member of staff, but how the company’s swift response had helped it get on top of the situation quickly. The company had used every means at its disposal to let customers know that this wasn’t the case outside London, and drew the public’s attention, via social media and its website, to its many CSR activities, particularly with the homeless, to whom they donate food and run apprenticeship schemes. Keith’s main messages was to have a plan where everyone knew what they should do, who would be the key person to comment if a crisis occurred.

FREE crisis audit for IoD members How prepared is your company to handle the PR storm that follows any crisis or bad news story? Keith Beech is offering IoD members a FREE crisis audit to anyone who feels that they would benefit from it. It’s a process that can be completed in less than an hour of a members’ time, and from the answers Keith will put together a confidential report and recommendations. There would be no commitment from members and no charge to them. For more information contact Keith at keith.beech@core-management.co.uk

IoD West Midlands Spring 2014 | 19

Leadership training at its very best, with the British Army Timings: From 09.00 Friday, June 21 to 16.00 Saturday, June 22 Venue: Marlborough Barracks, Temple Herdewyke, Southam, Warwickshire CV47 2UL Price: £150. This includes all meals and barracks accommodation To book: Places on this event will be strictly limited. Early Booking is highly recommended to avoid disappointment. To reserve your place email Gareth Hughes, Administration Officer, SaBRE, at wm-empspasst@rfca.mod He can also be contacted at 0121 427 5221 ext 246

20 | IoD West Midlands Spring 2014

EST Midlands Young IoD is pleased to announce a very different and innovative professional development opportunity being offered to IoD members this summer. The initiative is being organised by Young IoD jointly with BPS (Birmingham Professional Services) However, the opportunity will be open to all members, irrespective of age. The aim of this two-day practical seminar will be to expose delegates to the current British Army thinking on leadership and teamworking skills. It will be based on the highest level of training experienced by young army officers going through the Army’s officer training college at Sandhurst and will be

delivered by some of the Army’s best people. This represents a great opportunity to learn leadership at the cutting edge. Even better, this event has been heavily subsidised by the Army and so the delegate price is just £150 + VAT, which includes an overnight stay including dinner on army premises: The event will provide a great opportunity for business leaders to consider, shape and refine their own leadership styles. What is planned? Following introductions and some Belbin testing, delegates will work in teams on a number of practical exercises. There will be a mixture of lecture theatre

Young IoD events

Birmingham’s Nuvo bar to host YIoD social night Date: Time: Venue: Price:

“This event will expose delegates to the current British Army thinking on leadership and teamworking skills. It will be based on the highest level of training experienced at Sandhurst...” and outside working. Delegates will need robust footwear; if required, any waterproof clothing deemed necessary will be provided by the army. The event will not require a high level of physical fitness and is recommended to all age groups. No one will be asked to do anything they are not physically able to achieve. This is a not-to-miss practical, thoughtprovoking fun event to help shape your leadership and ultimately team performance. Early booking is highly recommended to avoid disappointment. For further details and information about this unique event please do not hesitate to contact the IoD office on 0121 643 7801 or email John Phillips at John.phillips@iod.com, but bookings are through SaBRE (see left).

Thursday, May 22, from 6pm Nuvo Bar, 11 Brindleyplace Free of charge

Young IoD is planning to arrange a social evening every quarter to build and strengthen our network, enabling us to support each other and become more effective leaders. The next event will be on May 22 as above. YIoD Chairman James Villarreal will give an update on further exciting activity during the evening, including plans for events with the London Stock Exchange and the army (see left). This event is free to attend but please register your attendance by emailing John Phillips at john.phillips@iod.com or 07703 355891. We are happy to welcome nonmembers to these social events. For more details contact John Phillips or Sue Hurrell at the regional office on 0121 643 1868 or Dean Kavanagh on 07738 697751. n Read Dean Kavanagh’s blog about his progress through the IoD Certificate in Company Direction programme at www.iod.com/youngdirectorcertificate

IoD West Midlands Spring 2014 | 21

Student mentoring

Calling all members: we need you to act as student mentors by Craig Holden

n the winter issue of this magazine I reported on the IoD’s student mentoring scheme for final year students at the University of Wolverhamp-ton’s Business School. Having been inspired to volunteer my services, along with 27 other mentors – all IoD members – we all turned up on an October night in 2013 to meet our mentees and be briefed by the scheme’s co-ordinator, Jenni Jones. Many of the mentors were returning for their second or third stint, but as one of the small band of those making their debut, I didn’t quite know what was expected. All I did know was that the scheme was in its third year with the laudable aim of helping final year students by developing an understanding of what they needed to do to improve their chances of getting a job after graduating. We were introduced to our mentees, and so began a process of monthly hour-long meetings as we got to know our mentees and discovered where they needed our help. The needs of the mentees varied, of course, but key focus points included advice on CV writing, help with interview skills, supporting job applications, sharing insights into the real world of work, helping them find some clarity about what career to choose and, above all, perhaps, building their confidence. Looking back, it has been a truly rewarding experience for both mentors and mentees, punctuated by one or two real highlights, which included an evening held at the premises of IoD members Aspray24, where mock interviews were held for all of the mentees. This excellent session was led by Aspray24’s MD and chartered director, Stuart Laight, together with finance director Martin Saunders, both of which have been members of the

mentoring scheme since its inception. Stuart and Martin organised a tour of the business where our students had applied for their mock positions thus giving more context to the process. In addition staff from Aspray 24’s personnel department were on hand to conduct one-toone sessions with all the young people involved. For many of the students this was their first experience of a job interview and the feedback from them was excellent. It’s very important that students about to leave academia begin to understand the components of how a business works and where their particular skill sets could fit in. Meetings such as this gives them the confidence to explore all the avenues open to them and demystifies that sometimes complex world of work for those students who perhaps have so far not considered what their life will be like post-education. As part of the visit Aspray24 allowed us to conduct mock interviews on their premises, and the company’s HR department was on hand to offer advice on CVs and interview tips. I’m sure the session is one from which the university students will derive a huge amount in the years to come, particularly in the crucial first year when they leave university. From a mentor perspective, Allan Binstead, Managing Director of Thermit Welding (GB) Limited, sums up the experience: “The mentoring programme was energising – it was great to give something back, but also to learn more about the aspirations and expectations of the undergraduates who are soon to launch themselves into the job market. I, like all of the mentors, am humbled by the skills and talent that the students have and have been delighted to be able to help.” From a mentee perspective, the following quote summarises nicely what the mentees as a group felt they gained from the scheme:

“...... most importantly, I feel the scheme has been motivating, and meeting the directors has inspired me to work hard. My own mentor was friendly, responsive and genuine! He guided me in terms of my career path, improved my confidence and helped me with my CV. I’m super grateful for his help. I think it’s a brilliant scheme for third year students, to give them an edge, help with motivation and build their confidence.” Encouraging words, I’m sure you’ll agree. The IoD scheme has grown from 14 mentors and 19 mentees in 2011/12 to 28 mentors and 30 mentees this year. Indeed, this growth is set to continue: Jenni Jones from the University of Wolverhampton predicts as many as 50 mentees for 2014/2015, which means we need even more volunteers from the IoD membership, to act as mentors to the students. That’s why John Phillips is asking for more members to offer their services: “We are all experienced directors but sometimes we underestimate how much we are able to give to young people finishing their education and having aspirations to build a business career. “I’ve found the University of Wolverhampton mentoring scheme immensely satisfying; I know our members have been able to offer real assistance to dozens of young people. Both mentors and mentees derive considerable benefits and I would be very happy to meet with any IoD members who are in a position to volunteer. The time commitment is less than you would imagine and it’s a great way to engage with your IoD branch and network.” Anyone interested in volunteering as a mentor should contact John at john.phillips@ iod.com or 07703 355891. I’ve already put my name forward again!! n Craig Holden is managing director of C H Marketing Limited and an IoD member. If you would like to discuss his time as a mentor he can be contacted at craig@c-h-m.co.uk. Students and their mentors take a break from the mock interviews at Aspray24‘s headquarters

22 | IoD West Midlands Spring 2014

Advertising Feature: Financial advice

A changing planning landscape

hange in the legislative landscape is a constant in the financial advisory industry, but this year’s Budget brought more than its fair share of new potential amendments. The combination of late Autumn Statements and early Spring leaks has left recent Budgets largely devoid of surprises. Most pundits believed that the 2014 Budget would follow this trend, if only because the Budget deficit in 2013/14 was still £108 billion. However, George Osborne proved them wrong and revealed a range of initiatives that had successfully been kept under wraps. The reforms proposed to pensions, reducing the role of annuities, will change retirement planning significantly and have already had an impact on the value of insurance company shares. Some aspects of the new pension framework remain unclear, in particular the treatment of defined benefit (final salary) schemes in the private sector. The Chancellor also set out a new structure for ISA savers. Instead of introducing a cap on total ISA investment, as was rumoured last summer, Mr Osborne will increase the annual contribution limit to £15,000 from July 2014. In addition, he will effectively scrap the current distinction between cash ISAs and stocks and shares ISAs. The changes to the size and rate of the starting-rate income tax band from 2015/16 were also surprises for savers, although only about 1.5 million people are expected to benefit. Ironically, what was widely leaked as the good news of the Budget (and its most costly) – a further increase in the personal allowance to £10,500 in 2015/16 – almost went unnoticed among the Chancellor’s reforms. Below I share with you some of the possible actions and considerations to contemplate in relation to your own planning, on the back of the recent announcements. You should review your retirement plans, especially if you are close to drawing your pension, and seek advice. The rules are changing very shortly and there will be more reforms in 2015 – placing the onus on you to ensure that you do not run out of assets and income through your retirement.

Key points:

n Review your retirement plans n Maximise pension tax relief n Capitalise on higher ISA levels n Share gains with your spouse n Watch out for new death liabilities

Want to know more?

Maximise pension tax relief while you still can. The pension annual allowance was cut to £40,000 in April 2014 and the lifetime allowance fell to £1.25 million. Take advantage of the generous carry forward rules to maximise your retirement provision while you still have the opportunity. The ISA limit will rise to £15,000 in July 2014. So a couple can then invest up to £30,000 in a tax free plan in cash or shares. Consider current cash balances, and/or monthly surplus income for regular saving Share your gains. If you are a higher or additional rate taxpayer, you will pay 28 per cent on all capital gains above your annual exemption. If your spouse or civil partner is a basic rate taxpayer, they will only pay 18 per cent on gains above their annual exemption until their basic rate tax band is exhausted. New rules apply to liabilities on death. For example, if you borrowed to buy an asset that qualifies for IHT relief, your potential inheritance tax might now be much more than you expect. You might need to make some changes to your planning. Rethink your plans for investment in new business equipment. The annual investment allowance gives businesses immediate tax relief on the purchase of most types of equipment. The limit has doubled to £500,000 a year from April 2014. Get advice about timing your expenditure. Sharing with your spouse. If you run a company or business, make sure that your spouse/partner is appropriately paid and pensioned for any work and that they share in the profits if possible. You may be able to adjust your incomes to retain your child benefit. Consider cash accounting for VAT if your turnover is less than £1.35 million. You only pay VAT on cash you receive rather than of your invoices. Many businesses find it makes sense.

Our Budget Report 2014 sets out the main changes, and key facts and figures, with further useful tips for your financial planning – so please contact me at paul.morgan@sjpp. co.uk or on 01926 499279 if you would like to receive a copy. And, of course, please do get in touch if you would like to discuss its possible impact on you. The value of an investment with St James’s Place will be directly linked to the performance of the funds selected and may fall as well as rise. You may get back less than the amount invested. Equities do not have the security of capital which is characteristic of a deposit with a bank or building society. The levels and bases of taxation and reliefs from taxation can change at any time and are generally dependent on individual circumstances. PRM Wealth Management Ltd represents only St. James’s Place Wealth Management plc (which is authorised and regulated by the Financial Conduct Authority) for the purpose of advising solely on the Group’s wealth management products and services, more details of which are set out on the Group’s website www.sjp.co.uk/ products. The ‘St. James’s Place Partnership’ and the title ‘Partner Practice’ are marketing terms used to describe St. James’s Place representatives.

n Ready to help: PRM Wealth Management Ltd’s Paul Morgan

IoD West Midlands Spring 2014 | 23

Travel matters, with

Chiltern Railways: still top when it comes to right-time punctuality

hiltern Railways remains the top franchised rail operator for right-time train punctuality, according to the latest research released by Network Rail. The official rail industry figures, which are based on the percentage of services that arrive within a minute of their scheduled time, revealed that 86.1% of Chiltern Railways trains were on time against a national average of 66.3%, placing the train operator miles ahead of companies such as Virgin and London Midland. Andrew Munden, Operations and Safety Director at Chiltern Railways said: “These results reinforce our commitment to providing a punctual service on which our passengers can rely. While it is a great achievement, it is important not to be complacent and we are continuing to look at ways to improve so that our passengers have the best travel experience possible.” This is the latest in a series of good news stories for the train operator. Chiltern Railways recently announced the introduction of six new locomotives as part of a programme of continued investment in its Birmingham to London Marylebone Mainline route. Chiltern is introducing the ‘Class 68s’, the most up-to-date diesel locomotive available in Europe, onto their entire Mainline silver train fleet. A key aspect of the investment provides scope for future expansion thanks to superior haulage capability, allowing Chiltern to increase train lengths should station platforms be

24 | IoD West Midlands Spring 2014

extended at a later date. The investment in locomotives is just one of the improvements that the company has made for the benefit of rail passengers in the West Midlands. The upgraded rail route, Mainline, launched in 2011 following a £130 million project to reduce journey times between Birmingham and London Marylebone. As part of the launch Chiltern introduced free Wi-Fi on all trains between the two cities, the first train company to do so without charge as well as launching the first-ever premium economy style, Business Zone. In 2012, the company added capacity to the Mainline silver trains and refurbished the carriages to install powered doors; during 2013 a programme of refurbishment of the alternative Mainline trains began which continues through 2014. Rob Brighouse, Managing Director of Chiltern Railways said: “The introduction of new locomotives marks yet another key investment milestone for our Birmingham-toLondon Marylebone route. Their addition not only updates our fleet with the most up-to-date diesel locomotives in the UK, it allows us to prepare for future expansion as demand for our line increases.” The vehicles weigh around 85 tons each,

equivalent to the weight of 68 average-sized cars; they are driven by a 3,750 horsepower engine (compared to an F1 car with around 800 horsepower or an average family car with 200 horsepower.) The new locomotives have been supplied by Carlisle-based rail company Direct Rail Services (DRS) and are expected to be in operation during winter 2014. DRS will be providing a fully maintained service to Chiltern Railways and will be assisting in the commissioning and introduction of the locomotives prior to service commencement. Neil McNicholas, Managing Director of DRS said: “DRS is proud to support Chiltern Railways in this exciting project, which will see the Class 68 locomotive delivering industryleading levels of performance, reliability and fuel efficiency as well as environmental credentials. Working in partnership we are focused on delivering the highest possible standards to meet Chilterns long-term franchise requirements and providing exceptional service delivery to the customer.” With service improvements like these, there is now even more reason for passengers to travel with Chiltern, whether it is for work or leisure.

To find out more and book tickets, see

www.chilternrailways.co.uk

Chiltern has made a series of major investments in its engines and rolling stock in recent months

Time to take legal advice on Llp structures?

ince their introduction in 2001, limited liability partnerships (LLPs) have become the preferred corporate vehicles for many professional services firms. However, in recent years, groups of individuals have also benefitted from the organisational flexibility and tax advantages of LLPs where they might otherwise have chosen to be shareholders in a limited company. Put simply, LLPs have benefitted from the limited liability and accounts rules that apply to a company, with the tax rules that apply to a partnership. Until 6 April 2014, specific tax legislation existed to ensure that all members of LLPs were treated as self-employed for tax purposes and were subject to income tax and National Insurance contributions on the profit share of the LLP accordingly. The legislation was specifically intended for tax purposes to treat the members of LLPs in the same way as partners in traditional partnerships. However, tax legislation applicable to a traditional partnership requires partners to have characteristics (and not just the name) of a partner. Legislation introduced in the Finance Bill 2014 and which took effect from 6 April 2014 has sought to address the inconsistency between partnership types. The changes are seeking to ensure that members of an LLP who are, in effect, providing services on terms similar to employment, are treated as ‘employees’ for tax purposes. These new ‘salaried member rules’ only apply to LLPs formed in the UK and not to general or limited partnerships. LLPs wishing to structure their LLPs to ensure that in the future their members attract self-employed status (which may be

Nick Dawson, corporate partner at the Birmingham office of Irwin Mitchell, explains what impact the Finance Bill 2014 will have for some LLPs in the West Midlands advantageous to the individuals themselves and will save the LLP cost in making employer National Insurance contributions in relation to those members) should consider taking specific legal advice on the salaried member rules. The new rules treat an individual member of an LLP as an ‘employee’ for tax purposes only if three conditions are all met. Where a member fails any one of the three conditions, he or she is treated as self-employed and is taxed accordingly. The test is perhaps deliberately constructed to sound as though a member is more likely to be treated as self-employed. However, many LLPs have been frustrated with the ease by which many of their members will, from 6 April 2014, be treated as employees. It is beyond the scope of this article to consider the tests in detail, but the three conditions to be applied in determining the employment status of members are: • the basis upon which members are remunerated; • the amount of management influence members have in the LLP; and • the level of capital contributions which members have made to the LLP. Some of the tests will be more, or less, appropriate for particular LLPs. For most professional services firms, the tests will re-classify members who may have introduced nominal or no capital into the LLP as employees (the test catches members who would typically have been seen as ‘salaried

Sarah boosts corporate team Irwin Mitchell has boosted its Birmingham office’s corporate and commercial team with the appointment of Sarah Riding as partner. The move, which is part of an on-going strategic drive by Irwin Mitchell to expand its business legal services (BLS) division, represents the second partner to join the Birmingham team this year. Joining from Mills & Reeve where she headed up the firm’s private sector commercial contracts team in Birmingham, Sarah acts on a wide range of deal-driven commercial contracts including supply chain management, routes to market, strategic alliances, advertising and sponsorship. Sarah’s arrival comes shortly after the legal practice appointed highly regarded corporate partner Nick Dawson from DWF. Other recruits this year into Irwin Mitchell’s Birmingham office include senior associates Rob Laugharne and Fiona Hayles.

partners’ in traditional partnerships). Similarly, unless a member can demonstrate that he or she is involved in the day-to-day senior management of the LLP or can exercise significant influence through voting, he or she is likely to be taxed as an employee going forward (the test arguably catches any members who would not have typically been treated as ‘equity partners’ in traditional partnerships). Given the consequential increased cost to LLPs of additional employer National Insurance contributions attributed to members who have been re-classified as self-employed and in some cases the administrative costs of transferring to PAYE, it is not surprising that a number of LLPs have initially looked to encourage members to inject new capital into LLPs. The most certain and scientific test for members to fail (and so be deemed to not be an employee) is the level of capital contribution they have made to the LLP. While the new rules were brought into force on 6 April 2014, HMRC was still publishing technical notes and guidance on the changes as late as 28 March 2014. HMRC granted that, provided members demonstrated a firm commitment to inject capital prior to April, those members would have a further three months in which to provide such capital to the LLP. For members of large professional services firms (for example, large firms of accountants and solicitors), obtaining third party professional practice loans to inject capital has been frustrating but not overly problematic. However, the position has been less simple for smaller professional services firms and businesses who had taken advantage of the LLP structure in preference to limited company structures. For LLPs in this position, taking specialist legal advice and restructuring their LLP going forward will be the key to once again having their members taxed as self-employed. n Nick Dawson is a corporate partner at law firm Irwin Mitchell LLP. He is based at the firm’s Birmingham office. To discuss issues arising from this article, contact him on 0121 203 5325 or nick.dawson@irwinmitchell.com or see www.irwin mitchell.co.uk

IoD West Midlands Spring 2014 | 25

Employee benefits, with BHSF

Flexible employee benefits ease the pressure on hard-pressed HR staff

26 | IoD West Midlands Spring 2014

simplified by being provided online, and hosted outside of the company. By bringing together a range of tailored benefits such as healthcare insurance, salary sacrifice, buying/selling holiday and other options, Flexsme and other similar platforms dramatically reduce the admin input required of HR teams, and allow the company to offer a far broader scope of benefits than may otherwise be possible. 31 per cent of respondents to Employee Benefits Magazine’s research3 now use a flex platform, and another Employee Benefits study showed that 54 per cent of respondents offering flex did so through a flexible benefits provider4. As providers extend their offerings and new entrants drive down the costs, we can only expect this number to rise. Another key driver for some benefits can be characterised as the desire to provide a ‘safety net’ for employees and, in turn, their families. This range of benefits typically includes personal accident insurance,

‘‘

Another key driver for benefits can be characterised as the desire to provide a safety net for employees and their families

cancer cover, and employee assistance programmes, but a prime example, and one making a comeback, is death in service benefit. The notoriously laborious task of collating all requisite employee data for death in service was traditionally enough to drive many smaller businesses away; the man-hours required to complete the task were simply too daunting, and many opted to offer the benefits to higher-ranking members of staff only, or to turn away from the idea altogether. With a new, community-rated approach to death in service, this innovation in group life benefit is able to provide a fixed-cost, high value benefit for businesses, with little or none of the associated administration. As HR departments spend more time navigating the challenges presented by legislation such as auto-enrolment and while they remain under such strong cost pressure, employee benefits and HR support service providers will need to continue to present their clients with yet more efficient, more accessible, and more valuable aids for the HR function. 1 ONS research, http://www.dailymail.co.uk/news/article-1334888/ How-1-100-businesses-collapse-day-For-time-small-firms-bust-setup.html 2 http://www.xperthr.co.uk/editors-choice/the-shrinking-hrdepartment/113083/ 3 http://www.centaur2.co.uk/emags/employeebenefits/ employeebenefits-the-benefits-research-2013/ 4 http://www.employeebenefits.co.uk/Journals/2013/03/26/m/q/l/ EBS_0413.pdf

‘‘

he recession brought with it great pressure on businesses of all sizes, with 279,000 firms going under in 2009 alone1. Through smart leadership, countless businesses weathered the storm through to the recovery, but not without considerable cost-cutting across all departments. For their part, many HR teams turned to outsourcing to preserve the precious amenities of time and money, and the market for these services has continued to grow well into the economic recovery. Despite adverse conditions and a renewed focus on budget, research suggests that businesses sustained a high quality of HR functions throughout the recession. The average HR team has downsized in recent years; in 2012, the average number of full-time-equivalent HR professionals in a typical UK HR department was just 9.4, having fallen from 11 in 20102. However, of the organisations surveyed by Xpert HR who had measured the effectiveness of their HR function within the year, seven out of ten rated the effectiveness of the department as “above average” or higher2. In the face of diminishing headcounts, many of these HR departments turned to HR support services and employee benefits providers in order to simplify and enhance their execution of the HR function. Two main concerns benefit providers are regularly asked to address are the need to attract, engage, and retain valuable employees, and the wish to provide employees with support and peace of mind in case of illness, death, and other unforeseen events. Outsourcing has enabled businesses to satisfy both of these needs, without the financial and administrative strain sometimes associated with extensive benefits. The desire to improve employee engagement topped the list of issues shaping benefits strategies according to Employee Benefits Magazine’s The Benefits Research 20132, with 74 per cent of respondents citing it as a driving force. With increased engagement translating into a boost for recruitment and engagement, it is perhaps no wonder that the same research shows a steady rise in employee benefits budgets, year on year since 2011. A wide range of employee benefits are available, each of which meets a different need for businesses. One group of benefits offering undeniable advantages for time-restricted businesses is those offered online. Among this group are voluntary discounts sites, flexible benefits platforms and absence management systems, offering the common benefits of increased accessibility for employees, and a usually small administrative burden for the employer. One such online offering is Flexsme, a platform bringing together an employer’s whole benefits offering. Flexsme is perhaps the best example of an offering

- a not-for-profit approach to employee engagement As a not-for-proﬁt business, BHSF has no one to serve but its customers, and can plough value back into its products. BHSF now offers a comprehensive range of online solutions to engage your staff and enhance the value of your employee beneﬁts package.

Online discounts site

Flexible beneﬁts platform

Salary sacriﬁce schemes

Network Beneﬁts, BHSF’s online discounts site, offers your employees hundreds of discounts and special offers on well-known brands.

Flexsme allows you to provide your staff with a wide range and comprehensive set of highly-valued beneﬁts, and helps you to display the true value of your employees’ remuneration package.

BHSF offers a range of schemes to choose from, including childcare vouchers, bikes to work, computers, mobile phones and cars.

Health cash plans

Occupational health

Beneﬁts Booklets

Voluntary beneﬁts

Employee assistance programmes | Group Life Assurance | Absence management systems

For further information call BHSF today:

0121 629 1266 (quote WSB_0414)

or email sales@bhsf.co.uk

Feature: Finance

Invoice finance – an illusion of simplicity Why are lenders so keen on invoice discounting and factoring, asks banking and finance expert Ian Priest?

nvoice finance has become more popular and is no longer considered a last resort. It is a very profitable way to lend and has become the banks’ product of choice for working capital finance because; n The lender owns the book debts and has improved visibility on the customer’s business. n The lender gains more protection than it would on an “unsecured” overdraft n The lender can set aside in reserve less capital than it would with an overdraft n Invoice finance is categorised as ‘assetbased lending’, which puts it in the same category as equipment finance; this fosters an illusion of simplicity and a common misconception is that invoice finance products are straightforward; The lender purchases invoices at an agreed discount in return for the payment of a service charge, plus interest on the amount borrowed. The borrower receives a percentage of his invoice straight away – usually between 60% to 85% – and the balance when the invoices are settled. However, the reality is these products are some of the most complicated because there are so many individual elements to consider. Here are the main ones to consider when deciding whether to use invoice finance products (all are negotiable on a case-by-case basis). The type of facility At one end of the scale is confidential invoice discounting: it is cheaper, and easier for borrowers to administer, but carries the greatest risk for the lender. Factoring is at the opposite end of the scale and is more expensive and time consuming to administer, but carries least risk for the lender. Advance rate This determines how much a lender will

28 | IoD West Midlands Spring 2014

advance against a borrower’s invoices. It is only a headline rate, as the scope for dilution can be very high. Headline advance rates of 85% can easily become 60% or less. The facility limit This is the maximum the lender is prepared to advance. Lenders will usually charge to increase a limit. Minimum term and notice period Lenders will tie in borrowers for a minimum term – we have seen this vary from one month to two years! This can leave borrowers with uncompetitive terms for too long and heavy penalties to break the term, especially if termination is due to the borrower’s insolvency. After completing the minimum term, lenders will require notice if borrowers want to terminate. This can be a few months, depending on the lender. Service charge and minimum fee The service charge is levied on a borrower’s sales, including VAT. Some quote a percentage of a borrower’s sales; others a fixed fee. The cost can vary widely and care is needed to work out which is likely to be the best option. Service fees are nearly always subject to a minimum. It is usually an annual minimum fee, but some lenders quote monthly minimums, which can be more expensive. Discount margin The interest on funds borrowed, normally expressed as a margin over the lender’s base lending rate. It is payable in addition to the service charge. The discount margin is usually comparable to the interest margin payable on an overdraft and therefore lulls many borrowers into a false sense of security. However, the base lending rate can vary hugely: some lenders use the Bank of England base rate while others set their own.

Credit limits This restricts the value of invoices that can be discounted for each of the borrower’s customers. The amount of the credit limit depends on your customer’s creditworthiness. If a limit is breached the lender may refuse to discount the invoices in question, thereby reducing the borrower’s cash flow. Debtor concentration limit This restricts the maximum value of invoices due from any single customer as a percentage of the borrower’s total sales ledger. The concentration limit will depend on the lender’s credit policy and on the customer’s credit rating. If a limit is breached the borrower’s cash flow will be affected. Credit insurance Premiums vary, as you would expect; not only because lenders use different insurance companies, but also because some of them self-insure. There will also be differences in the level of cover, policy excesses, etc. Bear in mind also that credit insurance can be bought separately and does not have to be taken from the lender as part of the facility. Credit note restrictions Lenders will usually limit the total value of credit notes that borrowers can issue in each year. However, some are more flexible than others. Lenders will reduce the Advance Rate whenever a borrower exceeds the credit note limit. Arrangement fee Most lenders now charge arrangement fees. Amounts can vary widely – from a few hundred pounds to 1% or more of the facility limit. It is an easy way for them to claw back price concessions given in other areas. Directors’ guarantees and warranties Lenders seem to be calling for higher levels of guarantee cover than they did previously. The amount is negotiable but many lenders now also require guarantees AND director indemnities. There are different types of indemnity and borrowers need to be clear what type they are faced with. They can be ‘restricted’ (to certain

New members

to IoD West Midlands

Golden rules

n Seek expert advice n Always obtain borrowing

terms from at least three lenders n Negotiate harder on the things that matter most n Don’t run out of time – that will severely limit your options

defined criteria, such as anti-fraud provisions) or ‘unrestricted’ (in which case directors could be indemnifying the lender for any breach of the facility agreement). In some instances, directors might be better off signing a guarantee for a fixed amount rather than an unrestricted warranty. Legal advice is essential. Other costs These can add significantly to a borrower’s costs. Here are the main ones (although there are several others, depending on the lender and on the type of facility used): Take on fee – When you first start using invoice finance you may be uploading three or even four months’ invoices so the take on service charge will be higher than normal Security fees – may be itemised or quoted as a lump sum Audits – lenders will audit borrowers’ books and records, sometimes monthly, and may charge separately each time Overpayments – lenders will make an extra charge if ever they agree to temporarily exceed the agreed advance rate Refactoring charge - with certain products, when an invoice ages beyond a

specified number of days, some lenders charge an extra fee based on the amount of the invoice Annual renewal fee – costs vary in the same way as arrangement fees Same Day Payments to a borrower’s bank account can vary from £10 to £100 each! Bank charges - these can be charged on a per item basis, or even on a percentage of credits going through the factoring account. Practice varies widely and therefore so does the cost. Remember, there are many factoring companies in the market, not just the banks, and there are significant differences in the terms and costs they offer. Most of these components are negotiable, depending on the factoring company and the type of facility being used. So please remember our golden rules – see the panel above.

Neil Armstrong, MD, NPA Solutions Ltd Scott Bernard, Director, Aspen Leisure Paul Caris, Information Technology Director, Eversheds LLP Stephen Edginton, Technical Director, Dot Net IT Ltd Alexander Evans, MD, Precision Colour Printing Ltd Will Evans, MD, Amery Brothers Ltd Heather Graham, Finance Director, APB Group Ltd James Green, CEO, Tech Team Geoff Guerin, Director, BHSF Group Jo Hodgetts, Senior Partner, Harrison Clark Rickerbys Ltd Steve Jones, Director, Ishida Europe Ltd Karen Mackay, MD, Erudition Schools Trust Darren Millard, Director, Hadley Industries Holdings Ltd David Moffat, Director, Sanitec Corporation Lauren O’Brien, Commercial Director, Biocare Ltd Nick Moore, Operations Director, BAM PPP UK Ltd Christine Nott, Director, Acrobat Training & Consultancy Geoff Parsons, Chairman, By Design Group Ltd Malcolm Prentice, CEO, Garrandale Ltd Andrew Quarles van Ufford, Technical Director, Cuadrilla Resources Ltd Sarah Quinney, Director, Rosemount, Aerospace Ltd Jonathan Ratcliff, Director, JMR Sales & Consultancy Matthew Rawnsley, MD, Barnes Group (UK) Ltd Mrs Margaret Ryan, MD, Mar City Developments Ltd Paul Simpson, Sales & Marketing Director, First Capital Cashflow Ltd Prof Denise Skinner, Coventry University Gordon Storey, Chief Executive, ISSEE Ltd Helen Tarling, HR Director, Radis Group Nithin Thomas, Chief Exec, SQR Systems Dean Thornewell, Vice President, Joy Global (UK) Ltd Jermaine Weekes, Director, JW Innovations Andy Wilkinson, MD, OWB Creative Communications Mark Yates, CEO, Hereford & Worcester Fire & Rescue Service

Ian Priest is an experienced banker and now assists business in raising and retaining their finance. Ian can be contacted by email at ip@ independentbankers.co.uk

IoD West Midlands Spring 2014 | 29

Charity spotlight

Don’t rush - stay safe Continuing our regular focus on local charities, this issue we feature DriveSafe and Staysafe, two organisations determined to make a difference in saving lives while travelling and at home DRIVESAFE & STAYSAFE operate in the not-for-profit sector. The inspiration for DriveSafe & StaySafe was born out of the need to seriously make a difference in saving lives, both when travelling out and about and personal safety in all areas eg, home, office, travel and social. In 2005 we produced the first DriveSafe & StaySafe pack for female motorists, which was supported by Go Skills, AWM and Goodmedia Limited. We had excellent testimonials from a host of celebrities and organisations including the West Midlands Police, Warwickshire Transport Police, Highways Agency and BBC presenters Quentin Willson and Kay Alexander. 5,000 copies of the pack were given free to various organisations and individuals such as Victim Support and were well received. This reception to our initial product encouraged us to undertake in-depth research and we went into partnership with Aston University to support a PhD programme of research into ‘Perception of risk, feelings of vulnerability and effects on driving behaviour of women drivers across the lifespan’. The PHd was successfully completed in 2012 and we published the findings in a updated book aimed at both men and women. The uniqueness of the DriveSafe & StaySafe book lies in the driver exchange cards that act as ‘ice breakers’ as well as ensuring all important information is both given and received between drivers when involved in an accident. In addition the book is very user friendly! It is easy to read, with straight-forward text complemented by

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cartoons and photos. We are now producing education packs for schools and a one-day DriveSafe & StaySafe Certificate for adults over 16 and especially for employers and employees of all sizes of organisations. We genuinely want to make a difference. We all make mistakes when driving but we can minimise risks, eliminate many potential errors give us more chance to react in time if we are driving sensibly. Road conditions can be dangerous, especially in adverse weather but if we plan our journey, take our time and read the signs and signals well in advance, we can make that precious decision and not only keep ourselves safe but other road users, too. We can all improve safety on the roads and our personal safety by being aware, prepared and responsible. Time is a gift and to get somewhere fast – we need to slow down – if we want to arrive safe and sound!

Want to know more?

We welcome support to help us with our ‘courtesy on the road’ campaign, education packs for school and national certificate courses. In addition we also welcome support in all areas and also people who may wish to volunteer to help us. For more information see www.drivesafe-staysafe.co.uk or contact us at 0121 693 9390 07976 426463 or e: info@drivesafestaysafe.co.uk

The DriveSafe publication is full of good advice, delivered in an easy-to-access style, including cartoons (below)

IoD West Midlands chairman Jason Wouhra and On Board’s Karl George: both are committed to improving the balance of Britain’s boardrooms

s the debate surrounding gender equality in the nation’s boardrooms intensifies, IoD West Midlands is looking to provide extra support for the region’s best female directors and business leaders. Sue Hurrell of IoD West Midlands said: “I’ve had the privilege of meeting many of our women members, and I have the utmost respect and admiration for them. What is needed, however, if we are to help this pool of talent take the next step, is to bring female business leaders together so they can support each other. “Recent research suggests women enjoy networking with other women and I will be sending my own short survey to female members soon to gather some more information to help me organise a series of inspirational and helpful events.” Women at work and specifically on boards, has been highlighted as an area to be addressed by academics, the media and regulators alike in order to enhance the performance of ‘UK plc’. The widely quoted Lord Davies review set targets for women on the boards of FTSE companies and whether you agree with quotas or not, the composition of boards needs to change. Jason Wouhra, IoD West Midlands chairman, is keen to see the gender imbalance challenged. “It’s important that we make the best use of all our people. The current debate over the gender imbalance in our boardrooms proves there is a

New programme offers a helping hand for women problem somewhere in British business, and it is something the IoD is keen to tackle. “We are well beyond the time when boards should be better balanced. Directors should be drawn from the talent pool of the very brightest – of all sexes, colours and creeds. If you have the right skills and attitude, the job is yours – regardless of your personal make-up. “Hopefully, initiatives such as this one will help women develop the networks they need to nail down the director positions that they deserve.” For an informal chat on this exciting new initiative, contact Sue Hurrell on sue.hurrell@ iod.com or via 0121 643 1868. n A new pilot programme of events called ‘On-Board’ is another way that groups are looking to equip those people who want to contribute to the leadership of an organisation

by becoming a board member with the skills and network they need. Through these programmes, the governance forum trains and supports people from a variety of backgrounds so they can take up more senior roles in the private, public and voluntary sectors. On Board has already recruited 10 women to become part of the first cohort for women and we aim to have a maximum of 20 spaces available. This particular cohort is aimed at women in senior leadership positions at partner, director or CEO level and aims to help them obtain chair positions, public appointments or non-executive roles in national and international organisations. To speak to the course organisers direct, call 0845 505 1875. You can also visit www.on-board.co.uk for more information about the programme.

Business information at your fingertips The Business Information Service now has access to the Research Monitor business reference database by Euromonitor International, offering research on industries, countries and consumers worldwide. The database

coverage is global, over 5,000 industries and includes country reports across 80 countries. It provides consumer market overviews and brief industrial snapshots in various international markets as well as analysis of key issues

influencing the country and business environment and comprehensive demographic, macro-economic and marketing statistics. This database is available for IoD members to browse at the Business Library on the 5th

floor of 123 Pall Mall or one of our team of researchers can send members information from the database, as one of the 25 enquiries per calendar year. See www.iod.com/guidance/ information-resources

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