DQ 10 - Education Issue by Downtown in Business

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The Education Issue.

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DQ MAGAZINE

19/08/2013 15:38

welcome

ducation, education, education was a key mantra that once helped to get a British Prime Minister elected. Yet, despite billions of pounds being invested in the education, training and skills arena for a generation, business still bemoans a ‘skills gap’. The latest DQ focuses on how some of Downtown’s key members are helping to close that gap – and explores what more can be done to make education more ‘business friendly’. Elsewhere in this issue we look back on a summer of fervent Downtown activity, with a review of our Northern Revolution conference, Lancashire Business Week, a Property & Regeneration conference and the City of Liverpool Business Awards. In November it is the fiftieth anniversary of the assassination of a US President who is still much

talked about, written about and debated. John Fitzgerald Kennedy was murdered when he was just three years into his presidency, yet he left an indelible mark on the history of his country and the world. He is our latest DQ Icon. All our usual features are here too, including the latest ‘Cool List’ and regular columns from Michael Taylor, Jim Hancock, Roger Jonas, our Uptown Girl and Frank McKenna. As the new Head of Marketing & Communications at Downtown I have enjoyed putting our latest DQ together – I hope you enjoy reading it just as much. Yours Sincerely, Mark Asquith Head of Marketing & Communications Downtown in Business

Frank McKenna, Michael Taylor, Jim Hancock, Victoria Brown ,Roger Jonas, Leeds City College, Blackburn College, Jim Clarke, Stuart Rimmer, Adrian Roscoe, James Topping

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cONTENTS ISSUE 10

education

education EDUCATION

MAIN FEATURE 28

totally frank

the northern revolution

columns Totally Frank

The Taylor Report

Just Jim

Uptown Girl

Just Jonas

The Leading of Leeds: Peter Roberts

features

nr confernce

Main Feature: Education Education Education

Is the education system working? What can be done to improve it? Does it need improving? DQ finds out!

DQ Icon: John F Kennedy

John Fitzgerald Kennedy was one of the 20th century’s most iconic personalities. After serving in the United States military, he became the 35th and youngest President of the United States of America until his untimely death. JFK is our latest DQ Icon.

DQ ICON

SPONSOR FEATURES

downtime City of Liverpool Business Awards 2013

Northern Revolution Conference 2013

Lancashire Business Week 2013

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DQ Cool List

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Downtown’s Day: Stephen Twigg & Liam Byrne

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DQ MAGAZINE

totally

frank DON'T UNDERESTIMATE THE UNIVERSITY OF LIFE

Frank McKenna Chief Executive Downtown In Business

“Degrees were being offered in everything from origami to allotment management!”

ony Blair famously stated that ‘education, education, education’ would be his government’s top priority, and it is fair to say that literally billions of pounds were invested into academia during the New Labour years. Undoubtedly, some of this spend was absolutely essential. Decades of neglect, particularly in the North of England, meant that many primary and secondary schools were in an antiquated state by 1997. The need for a huge spend to improve the infrastructure of education in our country did not come soon enough, and it is now the exception rather than the rule to see run down, dilapidated, inner city state schools. The loosening of the grip of Local Education Authorities over the management of schools, the introduction of Academies and the shift in emphasis on the importance of schooling were positive contributions that the Blair government made to the education agenda. However, as was the case in many areas where public sector spending was dramatically increased by New Labour, the government failed to maximise the impact of its investment. Most obviously, many schools failed to modernise, both in terms of management and in terms of grasping the opportunity of flexibility to learning and the curriculum that Blair, if not all of his colleagues, wanted to see. There was also a failure to introduce a more diverse range of teaching and teaching methods; the working practices of those in higher education was a joke; and the quality of tutors across the piece remained, at best, average. Most disappointingly for me though was the government’s obsession with University. Further education is always to be encouraged, but why this must always end with students donning a cap and gown is beyond me. Far too many people who

were not going to benefit from University were encouraged to attend. Degrees were being offered in everything from origami to allotment management! This led to a generation of young people having a university education – but often lacking any basic skills that readied them for the workplace. A degree in common sense was clearly not an option if some of the university graduates I have employed in the past are anything to go by. There may be good arguments against the introduction of high university fees, however it has put a stop to young people using the years of 18-21 to ‘find themselves’ and have not even one eye on what career they wish to pursue as an adult. The new agenda that offers good vocational courses, apprenticeships, internships and on-the-job learning is to be welcomed and offers a much more comprehensive learning journey to students. It is also a more attractive environment for more mature learners who are in need of re-training. The more innovative schools and colleges are now inviting entrepreneurs and business leaders into their classes. Even football clubs are getting involved, the likes of Everton establishing a free school and proving that hard to reach kids do not have to be written off. Of course, university is always going to be a good option for some – but now graduates are more likely studying subjects that will enhance their career prospects rather than opting for courses that enable them to frequent the student union and city bars most regularly. Getting an individual ‘work ready’ is not the only thing that education is for. But it is one of them. ‘Education, Skills and Training’ is a better mantra than that of Blair’s which in the end actually translated into ‘University, University, University.’ It was good for the academics, but bad for business.

M @DQDOWNTOWN

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DQ MAGAZINE

the taylor

report DARK TOURISM: IT'S THE FUTURE

Michael Taylor Chairman Downtown Manchester In Business

“Our cities need to celebrate their life and their history in all of its forms.”

y favourite episode of the classic comedy series Phoenix Nights was the one with the Family Fun Day to reopen the club. It included a botched kids play area in an improvised portable toilet, adults dressed up as characters and that bastion of British pub car parks, the bouncy castle – except this one featured an inflatable penis. I liked it because, as with all good comedy, it had a root in truth. For the last five summers we’ve taken our holidays in England. And in between we’ve been on city breaks to London, Edinburgh and, best of all, Belfast. Part of me wants to relate to you the utter rubbish we have been served up in the name of giving stuff for the kiddies to do. Children’s menu options are routinely made up of inedible mush, that staple of bad diet – the chicken nugget. Many museums feature lots of buttons to press so lights go on, art galleries have corners where you can draw, rather than inspiring the imagination. And lots of bouncy castles. But luckily, blissfully and in timely fashion, the tourist industry in this country is getting its act together. Even though austere times have encouraged more people to take staycations – the other truth is that the degree of entrepreneurship in the tourism industry, forced or otherwise, is creating more experiences worth paying for. My kids have grown out of the East Lancashire Railway, but it was great while it lasted. Blissfully, we avoided it when they’ve had World War Two re-enactment weekends where the Nazis have turned up and learned to swerve the ghastly “Thomas weekends”. But we have stepped onto the footplate, tooted the horn and felt the fire from the engine. I’m sure there’s a health and safety

directive that says we shouldn’t have, but it gets to the heart of what positive happy experiences are all about – jeopardy and danger and real people. The Titanic Belfast visitor attraction is brilliant for this. It manages to span a huge range of touching points that the Titanic opens - starting with the history of the city itself, to the empire, trade, maritime engineering right through to emigration and social class when the exhibits got to the maiden voyage. Belfast is a city with a lot of energy and though the Titantic may have been a tragedy 100 years ago, it's an opportunity now. The best site we have visited this year has been the Honister Slate Mine at the very top of Borrowdale in the North of the Lake District. Mark Weir re-opened the mine in 1997 and fought a constant battle with the National Park Authority until his death in a helicopter crash in March 2011. We were very honoured to be led around the mine by Mark’s mother. Her account of the life of slate miners through the centuries and of the Cumbrian terrain, really added to the experience, but so too did her passionate accounts of her son’s own tenacious and dogged struggle to make the attraction work, as well as his fights with authority. Mark Weir saw the potential for the site but knew it needed more than nostalgia to make it work. He wanted a zip wire and a via Ferrata (iron road), to give customers something else, something dangerous and exciting, but also something in keeping with the outdoor adventure appeal of the Lakes. A few years ago I chaired a Cumbria Business panel which featured John Dunning, owner of the Westmorland, which operates the Tebay Service station and the Rheged visitor attraction. He was scathing

about how we do tourism in this country and urged radical thinking. I think he’s right, but I also think Rheged isn’t up to much either. This was all in the forefront of my mind when I was campaigning to challenge the decision of the Science Museums Group to consider closing Manchester’s MOSI, The National Railway Museum in York, or the Media Museum in Bradford. Our cities need to celebrate their life and their history in all of its forms. But they also desperately need to provide the opportunities to discuss, debate and question in these kinds of visitor attractions. It’s not enough to peer at things through glass cases. That’s why I think festivals have taken off as they have recently. On top of this there’s a department at the University of Central Lancashire that studies and investigates the phenomena of Dark Tourism. I saw Philip Stone lecture on this and explain what it is that draws people to spend their holidays in Cambodia, to visit Auschwitz and Chernobyl? I dare say that the macabre in me got even more from Honister for having met the mother of a dead son who’s vision surrounded us. At the risk of sounding heavy, I think there is a genuine reaching out going on. People don’t trust so many institutions they once relied upon and are looking deeper and deeper into what makes us tick, what life is about. Maybe one day there’ll be a museum of Northern life which will feature artefacts from our dark past – witch burning and even the Phoenix Club fun day, but until then, we’ll support what we have and encourage them to be bolder and braver.

M @DQDOWNTOWN

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04/07/2012 09:42

just

jim WE DON'T NEED THIS EDUCASHUN SYSTEM

B Jim Hancock Poliitical Editor Downtown In Business

“To give us truly comprehensive education, they might support the abolition of the public schools.”

ring back the grammar schools! So there, I’ve thrown a hand grenade into the debate on education. It is so non PC to make this suggestion. Opponents will immediately wave their shrouds, wailing about late developing children having their lives blighted by the arbitrary 11+. I’m much more concerned about the thousands of children who want to learn having their lessons disrupted by pupils who don’t want to pursue an academic education. The education system is not producing enough young people with the right skills and attitude to help us match our future competitors like the Chinese who are churning out millions of their youngsters ready for the challenges of the 21st century. Our politicians are failing us badly and this is partly because they won’t offer the bold alternatives like the call I made in the first paragraph. Voters should be offered a choice between a Conservative Party explicitly committed to returning to the grammar school system with this crucial difference. They would also be committed to an excellent system of vocational training which would be equally well funded and held in high esteem by parents and business people. Labour would be wholeheartedly committed to the comprehensive system with its basic belief in mixed ability teaching, giving everyone the same theoretical chance of succeeding in an academic environment. To give us truly comprehensive education, they might support the abolition of the public schools. They provide an unjustifiable passport to success for those with money. The problem is that the European Court of Human Rights (an institution I fully support) would probably strike out any legislation which scrapped Eton and Harrow. UKIP is in favour of a return of the grammar schools but the two main parties offer a mess. A complex confusion of policies lacking any coherence because they haven’t the courage to say what they really believe. Hence Education Secretary Michael Gove is trying to recreate the grammar school system by the back door. He’s doing this with academies and free schools. The latter scheme allows unqualified teachers into the classroom, free schools are being set up where they are not needed and are taking

an unfair slice of the budget in setting up costs. He is trying to introduce grammar school rigour on the comprehensive system through the abolition of modules and an insistence on the teaching of facts in subjects like history. Labour is massive handicapped in criticising this policy because academies were the big idea of Tony Blair. He could see how the comprehensive system was failing. But the Labour grassroots have never been happy with this approach. This leaves the affable and able Shadow Education Secretary and Liverpool MP Stephen Twigg in a difficult position. When he is asked what Labour’s policy is we get a list of tweaks to the current system. He wouldn’t close free schools but would insist on qualified teachers. He wouldn’t abolish academies but would want them to be parent led. Twigg’s colleague Diane Abbott is in despair. She believes in rigour in education. She represents a constituency where many pupils lack family encouragement to succeed. Abbott said tough credible exam qualifications were needed by students who didn’t have parents who could put a word in for them in the jobs market. Michael Gove declared that he loved the Hackney MP after these remarks. The voters need to be given a real choice. Let’s see whether they are attracted to a wholesale reform of the schools system to introduce academic and vocational schools equally prized by parents and society, or to continue and perhaps enhance, a truly comprehensive system of education. Whatever the outcome, business is demanding better qualified youngsters and a stronger say in what is taught.

M @DQDOWNTOWN

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TURBULENT TIMES & ZERO HOUR CONTRACTS

Victoria Brown Managing Director High Performance Consultancy

I am a workaholic; currently juggling three businesses, a young daughter and a high maintenance husband (he will argue the latter is the other way around). As the MD of HPC, an award winning, international HR outsourced service provider, I have recently been involved in redundancy processes for some of our clients. I wanted to highlight some of the negative aspects that companies face in these situations below. I am also the owner of OneHR software, which is a recent launch. There has been much speculation recently over the contentious Zero Hour Contracts issue and I have also explored this subject in this feature.

and indeed leadership from the top. How can you have a poor performer in your business that has worked for you for 5 years? When questioned on this, many managers will say ‘they have always been a problem’. Does the responsibility therefore not lie with the manager/business owner rather than the underperforming employee? I advise my clients to manage poor performance head on and not to hide behind ‘redundancy’. Redundancy is a very risky game to play and may ultimately lead to a costly Employment Tribunal.

Turbulent times

Zero hour contracts

or the past few years we have seen an influx in the work we complete for clients surrounding redundancies. This is to be expected in some industry sectors, but it doesn’t make the process any easier. I was recently involved in a redundancy process for a large multi disciplined law firm within the UK. Some of the employees that were made redundant had worked for the firm for over 30 years and had never dreamed that they would face this situation. As a HR Consultant your role is to mitigate risk for the client, but to also provide as much support as possible to those that are to be made redundant or are at risk. This is easier said than done, when you have some employees that are close to retirement and no desire to re-train. Whilst this example was a genuine reason for redundancy, I do come across so many other businesses that try and use redundancy as an excuse to ‘remove’ their poor performers. I have again noticed a growing trend in this area and I can only conclude that this is due to business owners scrutinising their wage roll and wanting their ‘pound of flesh’ from employees. My view of this sort of practice is that it demonstrates poor management

his has been a hot topic in the wonderful world of HR of late. In my opinion the big problem with this type of contract is in the name. The perception that many people have is that a ‘zero hour’ contract provides an employee with absolutely no rights. This is not the case and the clue is once again in the name; this is a ‘contract’. They have to meet the terms of the Employment Rights Act 1996 by providing a written statement of the terms and conditions of employment. The Employee will still accrue holidays and can still submit a tribunal claim if they feel they have been ill treated by their employer. From an analysis of High Performance Consultancy’s client base, I have not noticed an increase in the issue of these sorts of contracts. I do however find that some clients have been mis-advised on the fair usage of these contracts in the past. I believe that zero hour contracts have a place within the world of employment, particularly in certain sectors such as hospitality and retail. There are simple measures that the government could put in place to avoid the misuse or exploitation of these contracts. It would be also worthwhile them considering changing the name!

M @DQDOWNTOWN

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09:53

just

jonas IN PURSUIT OF SUCCESS

E Roger Jonas Events Manager Downtown In Business

“Even as ‘the boss’ of my department, I happily engaged with people who had a different skill set to me and learnt from them.”

ducation is essentially the ability to retain information given to us that progresses the understanding of an individual in specific fields and the subsequent ability to recall that knowledge at given times. Our capacity is measured throughout the course of our education by certificates, qualifications, endorsements and testimonials. Although I despised school with a passion, I acknowledge now that I probably should have applied myself a little more while I was there. Having said that, knowing what I know now, I realise that half of the tutors challenged with the duty to “educate” me, probably didn’t actually like children, so my “comprehensive” education was never destined to be that comprehensive from the off. I think I was definitely one of those whose education started properly in the work place. Maths, the one subject I failed dismally in at school, turned out to be the one subject I would use the most in my early working years, so I had little choice but to train my mind, as bull**iting was not an option. Pre-career, the most significant chapter in my life was a decision that was made for me. In my final year at school, with no desire to pursue a career in the medical profession, I was packed off by my parents to work in Psycho-geriatric ward for the summer at Chester’s Deva Hospital. This was the first point in my life when I felt I personally flourished and unconsciously grasped the concept of the values and benefits of “Education”. I was finally allowed to apply the previous information given to me and, away from the measuring eye of those I despised the most (my teachers), I was able to connect with reality. The production line of school had never permitted me to do this previously. I guess in the greater scheme of things and considering my loathing for school, I did okay... just! Without going into detail, my apprenticeship in my first real job was not an apprenticeship as we might recognise it today. I was completely hands on and mentored by people at the top of their game. Saying this, there were a number of skills that I already possessed that I was able to share with my colleagues and found that they were willing to listen and absorb. I progressed sensibly and proportionately and was allowed to contribute

effectively to an industry that respected me as a hard worker and not just “cheap labour”! Don’t get me wrong though, I was still the first one to be given the sweeping brush and the one expected to make the coffee! As my education progressed I was able to climb the rungs and achieve a level of leadership that suited my abilities. I had placed myself in an industry that resonated with me and learning was never a chore. Even as “the boss” of my department, I happily engaged with people who had a different skill set to me and learnt from them. During Liverpool Business Week, Frank McKenna was asked what the route to success was. His reply was to surround yourself with people who are better than you. I would argue that you surround yourself with people who have different skills than you, and who are able to apply them with the same work ethic as you, thus taking ownership of their role. Frank McKenna can give most politicians on the block a run for their money, but I bet he can’t EQ a multi channel mixer or calculate the brail length for a hanging Frenchman with a 10 foot drift! (You would be surprised how useful that is!) Education never stops, its how we best put it to use and how we recognise it in others.... simples! How we calculate success... Well thats individual.

M @DQDOWNTOWN

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19/06/2013 12:26

the leading

of leeds LEEDS CITY COLLEGE College's innovative approach to apprenticeships supports city's growth

Peter Roberts Principal Leeds City College

“It is vitally important that we equip our students with the skills that employers want”

commitment to playing its part to support business growth and a skilled workforce in the city has seen Leeds City College develop an innovative approach to apprenticeships. The College is the country’s third largest Further Education establishment, with significant influence within the sector. Work with external partners and business is one of its key areas, helping to train people with the skills and qualifications that employers need to thrive. As one of the single largest providers of apprenticeships in the country; last year alone, it delivered 9,000 apprenticeship starts across England, working with public, private and third sector companies from SMEs to major household names including TNT, BAE Systems, Arriva, DFA, Argos, Leeds Teaching Hospitals Trust, LUFC and Leeds Rhinos. For employers involved, they have access to a tailor-made training programme designed around business needs, which can assist effective recruitment and the development of a well-trained, well-motivated workforce as well as improving company performance. Working across all industry sectors both locally and nationally, the current Apprenticeship portfolio covers 28 frameworks, from animal care to engineering, customer service to childcare and motor vehicle to marketing. The apprenticeship offer is enhanced by ‘Big Match’, a free recruitment service inspired by the private sector, which matches suitable candidates with relevant employers. The College identified prohibitive factors stopping employers from taking on apprentices, and created a new unit to match individuals through a rigorous selection and assessment process. Staff provide expert help and advice throughout, from developing job roles and person specification through to candidate screening and interviewing, and on-site assessment and support. Leeds City College is working collaboratively with key partners on a number of innovative projects set to help support employers and encourage jobs growth. Joining with The Flannels group, one of the country’s largest independent luxury retail groups, the College created an exciting new enterprise. ‘The Food Academy’ is a restaurant managed by the

College, located above a designer clothes store in a prestigious city centre location. After completing catering or hospitality training with the College, students who have excelled in the kitchen and front of house have the opportunity to be employed as apprentices in a professional environment, gaining invaluable work experience. The Food Academy aims to rival the top restaurants in Leeds, and is fast becoming a popular dining destination. The College, as lead partner with Leeds City Council, has also created a new apprenticeship hub in the city - the Apprenticeship Training Agency (ATA). Launched in November 2012, the ATA is a flagship business which works to encourage and support small and medium sized businesses to take on apprentices. In a radical new approach, the ATA acts as a broker matching talented young apprentices with local businesses, and most importantly, absorbing any associated risks by employing the apprentice directly. Following on the heels of the ATA and also forming part of the Leeds City Deal to increase employment opportunities in the city, the College opens the 14+ Leeds Apprenticeship Academy on September 4th. The first of its kind in the country, the Academy is to deliver a unique pre-apprenticeship offer for 14-16 year olds, providing an alternative educational route into employment to the traditional Years 10 and 11 at school. It will combine the teaching of key GCSEs alongside vocational qualifications and link directly to real employment opportunities. Key local employers are taking on an active role in helping to develop young people to become skilled, professional and enterprising, and who can make a significant contribution to the growing economy in the region. “It is vitally important that we equip our students with the skills that employers want,” said Leeds City College Principal and CEO Peter Roberts. “Apprenticeships are the perfect way whereby programme design and working with employers are combined to meet the needs of all concerned.” To find out more about Leeds City College’s comprehensive apprenticeship offer, visit www. leedscitycollege.ac.uk and search for apprenticeships or simply call 0113 308 7918.

M @DQDOWNTOWN

Step 1:

education

education EDUCATION !

INTRODUCTION BY MICHAEL TAYLOR

ony Blair listed his three priorities in government thus, ‘Education, Education, Education’, John Major, his predecessor, said he agreed, though not necessarily in that order. If there is one subject that is likely to be misrepresented or subject to a terribly misinformed debate it is education. So many times the middle aged politicians evoke their own version of what education should be like, based upon their own experiences and prejudices. It is a subject that is never far from the headline, be it over standards, the curriculum, the entry to universities or the debate about grammar schools. For us as a business organisation, the biggest issue we keep facing from businesses across the North of England, is a need for a rethink about what our education system is preparing future generations for. I also went to a Grammar School and got a good classical education. I didn’t like it, but I recognise it was good. I don’t think that the debate should be restricted to its merits or otherwise though. My concern isn’t for kids who are good enough to get a good education because they pass an exam at 11. No, it’s an outrage at the dismal schooling for those that can’t. The secondary modern schools were the disgrace of this era. That the comprehensive schools that replaced them took on their worst traits is the greater tragedy. I do see evidence that things have improved, but our system is far from perfect. I’m a school governor in the area of Greater Manchester where I live. I see at close hand the dedication and professionalism of teachers and administrators in schools. There is a continual drip feeding of nonsense and a plethora of urban myths about declining standards, how easy it is nowadays, how dumbed down school life is. There is also no understanding of how dedicated most teachers are, and little attempt to address the reasons why kids fail. Politicians claim the education service needs to address the 21st century, as if there are a body of teachers who are unaware of that. One of the constant complaints I bear witness to is the challenge of going to university. Tony Blair set a target that our economy needed a far greater proportion of our young people educated to a degree level in order for Britain to retain a competitive edge. When I went to a red brick university in 1985 I know I was in a very fortunate 10 per cent who had that chance. But for that to be extended requires a sharing of the burden of who pays for it. That’s the flipside of the argument that isn’t as well articulated. And when kids factor in whether it is worth it, they have to make a decision as to whether they want to be in the 40 per cent who will probably get the best jobs. Where the curriculum does come up woefully short is in the provision of technical IT courses. The current GCSE qualification, bluntly, is a test in Facebook and using Microsoft products. Most 14 year olds should be able to pass it while updating their status on the bus on the way to school in the morning while playing Minecraft. It’s not just the school’s fault that kids are offered this nonsense, as opposed to teaching coding skills, it’s a tragedy that there aren’t the teachers. Another area of education that requires greater work is that of employment readiness. I’ve been involved in mock interviewing exercises at schools and at the University of Central Lancashire. Some of the ‘candidates’ really do come up very short and need a sharp wake-up call. But then life’s like that. It’s only when confronted by the real world that many young people see what is expected of them. But my firm view is a greater involvement by local employers in all schools careers programmes is essential. A final point, educationalists often look to that shining example of success in the Far East, Singapore. Rightly, the island state is lauded for achieving high standards in the basics and for educating to a very high standard. It has prompted supporters of Michael Gove to recognise its commitment to the raw basics and the model for Britain. But now that the country has made a transition to a knowledge economy, the next phase the Singaporeans are seeking to evolve towards in their own teaching matrix is to encourage creativity. And where are they looking for that? That’s right, Britain.

Wendy Simms, Director of Academic Studies and Student Support at Blackburn College If there was one change I could bring about in education, to benefit the school leavers we work with in Further Education (FE), it would be to free secondary schools from the straightjacket which current exam-based league tables place them in. Some of our partner schools do some fantastic work which truly prepares young people for future lives and careers, but whilst the main measure of a school’s success continues to be GCSE grade percentages, that innovative work will continue to be the icing on the cake, rather than the main focus of children’s education, in the majority of our educational institutions. That is not to say that GCSE grades are not important in the assessment of young peoples’ learning, but that developing ‘Creativity’, encouraging ‘Thinking Skills’ and ensuring pupils learn to take ‘Responsibility’ must be regarded as at least as important as exam passes in measuring the success of a school. Those are what employers are crying out for, and what will impact positively on our community and our nation in the future. There have been clear moves in the right direction with more focus on individual development and also a greater emphasis on employability skills and good citizenship in the Ofsted framework. Developments in FE mean that one of our current key focuses at Blackburn College - across our whole curriculum from entry level to the university centre - is to ensure learners develop as future employees and, indeed, as future employers in many cases. We do this through embedding employability skills and we are working hard to ensure learners are not only skilled and knowledgeable, but ‘work ready’, possessing the initiative, creativity and transferable skills employers need. Access to high quality placement and volunteering opportunities as well as working on live briefs from employers are key. These opportunities bring about learning through experience, provide them with real work skills and allow them to develop enterprise. This year will see the introduction of our dedicated Employability Hub, which will focus on partnership working with employers and external agencies to source and provide these types of opportunities. Real progress towards this goal in education, from a much younger age, will, however, depend on the government re-balancing priorities and finding new ways to assess and measure the true difference a school makes to the lives of its pupils.

Coral Grainger, Principal &and Founder, Capital Relations Ltd

Stuart Rimmer, Director of Quality and Enterprise at Lancaster & Morecambe College The one thing I would change to improve the lives of kids would be for everyone involved from schools, colleges, universities, employers, training provider and parents to work together to provide high quality independent information, advice and guidance about career choices. This should start at an early age and be developed through their whole school and college experience so that sufficient effort is made to understand, support and guide the career choices for young people. There is a world of choice for the aspirant young person and many different but equally valid routes to get there. I see too many people making uninformed choices and missing opportunities. Young people often only get one shot - we need to help them get it right first time, every time.

I once did a leadership course with Lancaster University, in which my ‘learning style’ was analysed. You can probably guess the result - I turned out to be an ‘Activist’ - with a just do it approach. In considering how and what colleges should be teaching the next generation of employees and entrepreneurs, it was useful to reflect on this test and remember that as well as having different interests and ambitions, we all have different ways of learning, and ‘one size fits all’ can not apply in the classroom of the future. The Government, and local agencies such as GM Chamber, are now giving welcome attention to the development of digital skills. Curriculum changes to introduce coding and computer algorithms are welcome - they’re key skills of tomorrow, if not today. But not all kids will be coders and creatives. Whatever their business or career, future employees and employers will need to collaborate, probably online and in the cloud. They will need to solve problems, on their own and in teams. They must have curious and inquisitive minds, to discover what’s new and what might be possible, to keep learning, improving, succeeding. And if that’s not in their nature, they need to be inspired. Back in 2010, Google CEO Eric Schmidt, said that every two days we created as much information as we had from the dawn of civilisation up until 2003. There is no way tutors can impart, or even know, all there is on a subject. So future teachers must be enablers and partners in discovery, teaching critical thinking skills so that students can decide what’s true and of value. Students must also learn to flex and adapt. The world is changing quicker than ever. Schools and colleges should partner with industry experts to keep content current and connected to application. In Greater Manchester, great strides are being made in this direction by MMU through the Digital Innovation team, and the Post Grad partnership with Prolific North. Similarly, digital development and industry engagement is growing amongst academies and FE colleges. Oldham College’s Digital Skills Centre is set to open in 2014 with modern media suites, a FabLab and a desire to work closely with employers. But can this model for digital skills be replicated across other employment sectors? Or do digital skills become the bedrock for learning across all sectors? Ultimately, the most important skill for business is confidence. Confidence to make a sale, or follow a dream. I hope that my daughter’s teachers will empower her to make her own decisions and direct her own learning. Confidence to realise that there is always so much more to discover, and to embark happily on that unique journey. I hope that teachers in these institutions feel empowered to do the same.

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Adrian Roscoe, Business Centre Manager at Runshaw College The main thing we would like to see is schools doing more to prepare young people for the world of work. The transition from education into employment can be a daunting prospect for young adults and one of the biggest problems is that they are getting little or no opportunities to gain work experience. Even the British Chambers of Commerce has publicly dubbed schools as ‘exam factories’, stating that many employers have been left ‘disheartened and downright frustrated’ by poor levels of literacy, numeracy, communication and timekeeping, because schools place too much of an emphasis on sitting exams and hitting targets. Sadly, many youngsters are unsure of how to command themselves in the workplace, simply because they have never had the opportunity to learn and develop the skills or attitude that employers need. The Government’s new Traineeship initiative is now up and running and I am hopeful that the scheme will go a long way to bridging the gap between education and employment and addressing the disconnect between young employees and employers. Traineeships require commitment from both businesses and young people and offer a quality placement supported by a training provider or college. So a company provides an extended work experience opportunity of three weeks or more and the individual gets a taste of the world of work, as well as support with their vocational skills such as literacy and numeracy from institutions like ours. By doing something now to address this issue, businesses will be able to future-proof themselves by employing new recruits who are eager and have the necessary skills to hit the ground running.

Jim Clarke, MD of Apprentice Academy Young people are the future of our country and yet for many young people leaving education it can’t be very inspiring. Personally, I am an optimist, however when I switch on the TV there are regular updates on youth unemployment figures or someone talking about the fact that young people aren’t employable. Some of this is right and there needs to be change, however I think it is also important to remember most people don’t start out perfect. Personally I believe young people have so much potential however if we want them to be motivated, achieve at school and be ready for employment, then first they need to know what ‘success’ looks like. It is difficult to get excited about something you don’t know exists just because someone is nagging you to switch off your TV and go and study. I was lucky enough to be part of a 5 day trip to California to visit 12 truly inspiring organisations from LinkedIn, to Google and Salesforce, through to Stanford and Berkeley Universities. So how does this relate to young people in education in the UK? Well before I went out to the US, I read lots about successful businesses and watched hours of Steve Jobs videos on YouTube but never seen places like this in real life. Going to the US was like work experience on steroids. It’s true that we do have work experience in this country but is it the type that inspires young people? It got me thinking, what about taking the same concept to young people over here in the UK – I only spent 2 hours with each company but it was enough just to see it in real life. Going to the US might be a stretch (for the moment!) however there are some truly brilliant organisations in Manchester; from highly innovative SME’s, to world class Blue Chips, through to some of UK’s leading public services organisations. We actually trialled a project this year with one of our customers in Spinningfields. It was a real eye opener for the young people to walk into modern offices and meet professional people, who talked about life in a leading organisation. Will they end up working at this organisation? This wasn’t the point, the point was to ignite their aspirations by seeing success.

Mike Carr, Managing Director of scaffolding and industrial access specialist Altrad NSG It is good to see more schools and colleges developing courses and specialisms in areas such as engineering and maritime – the North West is a real hub of industry and it is essential that young people are made aware of the vast opportunities available to them. Perhaps in the past, young people have been encouraged to go straight on to university; but there are now a range of courses and Apprenticeships which can get them onto a sustainable career path straight from school. At Altrad NSG we believe in the importance of continued education and training in the workplace. We employ a number of young people who have been taken on straight from school or college and they need support and time to develop at their own pace. Graduates will always have their place but this needs to be balanced by young workers who are learning their trade from the bottom up.

preston college sponsor feature

IT ALL ADDS UP TO GOLD FOR PRESTON COLLEGE BOOKKEEPERS STAFF from Preston College’s accounting department were invited to a special ceremony where they were awarded a Gold Centre Award by the International Association of Bookkeepers. The award means that Preston College is one of the leading providers of IAB accredited qualifications in the country and builds on previous years of recognition from the IAB. The International Association for Bookkeepers (IAB) is the professional body for members who provide bookkeeping and accounting services to accounting firms and businesses‚ in the UK and many countries throughout the world. 2013 marks the 40th anniversary of the awarding body Students on the College’s range of IAB courses are made up of those wanting to gain a qualification in book-keeping to help run their own business and

those looking to progress in a finance career by gaining accredited qualifications. The award recognises the College’s high standards and learner achievements, measured through the length of accreditation, number of registrations and success rates. A spokesperson for Preston College said: “We’re proud to have again been recognised with an IAB Gold Centre Award. “This demonstrates our success and the success of those who come onto our IAB accredited bookkeeping programmes which lead to a professional certification. “We’ve offered IAB courses alongside our other bookkeeping and accountancy courses for a number of years and we have consistently produced excellent results.” To find out more about IAB courses or other accountancy courses at Preston College, either for yourself, your employees or some bespoke training for your business – please call 01772 22 55 22 or visit www.preston.ac.uk

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All my tutors have been a great help, encouraging me to showcase my work outside of the College. I’ve entered construction skills competitions every year during my time at college, and I’ve won gold and silver medals for my level of craft, which I’m extremely proud of.

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k e n n e d y

“Where were you when Kennedy was shot?”

t is a question that people of a certain generation are all too familiar with, and those who are still around today will be able to answer it instantly. Fifty years ago this November the 35th president of the United States of America, John Fitzgerald Kennedy, was assassinated in Dallas, Texas. There are a million theories, counter theories and conspiracies about why he was killed, and who did it. However, there is no doubt that for a man who was in the Oval Office for just one thousand and thirty six days, JFK made an incredible and indelible mark on the history of his own country and helped to shape the future of the world for many years after he had left it. Indeed, even today, Kennedy is influencing the thinking of modern social democratic politicians from across the globe. JFK, a war hero from a privileged background, was elected to the White House in 1960, defeating his Republican opponent Richard Nixon by the narrowest of margins. Many put his slender victory down to the presidential television debate, where Kennedy looked young, modern, fresh and comfortable against the comparatively dull Nixon. Others suggested that vote rigging and Mafia influence in key states had given JFK and his glamorous wife Jackie the keys to the Oval Office. What is certain is that at 41 years of age Kennedy was the youngest President to be elected in the States – and he was probably the first politician to adopt a media savvy approach to his campaigning, policy making and time in office. The phrase ‘spin doctor’ did not exist in the sixties, but JFK has a coterie of colleagues who did for him what Alistair Campbell and Peter Mandelson did for Tony Blair over thirty years later. He was a President who recognised and used the new medium of television effectively. He was a master of the ‘sound bite’, with the words “Ask not what your country can do for you, but what you can do for your country?” immortalising him as early as his inauguration. Ably aided and abetted by his wife, he created a modern and aspirational culture for his own country and famously established his new White House as ‘Camelot’. For the young and idealistic, JFK and the Kennedys offered hope, confidence and a belief that things really could change for the better. On issues such as race, international relations and public policy his approach was bold, outward looking and ‘new’ Democrat.

He believed in the American dream, that everyone should have a shot at being the best that they could be. But he also believed that success should be rewarded, and he fought a long and ultimately winning campaign to introduce tax reductions for American entrepreneurs and workers, against the wishes of many in his own party. What previously, had often been seen as the ‘invisible’ position of ‘First Lady’ was transformed into an important and professionally respected role within the Kennedy White House. Jackie was an articulate, twentieth century woman who had things to say. JFK let her say them. She was a personality in her own right and a plus in any political campaign. Again TV and the wider media were encouraged to utilise Jackie whenever appropriate. Indeed, on the international stage too, Jackie became as iconic as Princess Diana did many years later. On one foreign visit the President joked “It has been nice to accompany Mrs Kennedy on our latest international tour” as the first lady was mobbed by thousands of well wishers and snapped from every conceivable angle by the paparazzi. Beyond the campaigning and image making though, JFK alongside his younger brother Bobby, who he appointed as Attorney General, faced challenges and crisis that no President had faced before or since, no more so than in the arena of the ‘cold war’. In his early days in office, Kennedy was persuaded to support a covert invasion of Cuba known as ‘the Bay of Pigs’. The operation went disastrously wrong, leading to a huge propaganda coup for the Soviet President Khrushchev and his Cuban comrade President Castro. It was rumoured that it almost led to a military coup in the States, and it most certainly destabilised and undermined JFK’s Presidency. The debacle left him looking weak on the international stage and it was inevitable that this weakness would be tested by the Soviet Union at some time.

"The goal of education is the advancement of knowledge and the dissemination of truth."

That time came in October 1962 when US intelligence discovered that the Russians were placing nuclear warheads in Cuba. Where Khrushchev was anticipating weakness, JFK showed steel. For thirty long days the world was on the brink of nuclear war. Kennedy ordered a blockade of Cuban waters, preventing Soviet ships from delivering their weapons. He demanded that the Russian ships return to Eastern Europe – or war would be declared. In the tensest period of the long cold war years, Khrushchev blinked first, catastrophe was avoided and JFK had restored his credibility on the world stage. Domestically JFK boasted economic growth, near full employment and started the long process of introducing civil rights, a job that was finally finished by the man who so unexpectedly succeeded him Lyndon Johnson. Kennedy’s Presidency pioneered innovative work in the field of mental health, and he enthusiastically supported America’s space programme. Nonetheless, he was not universally popular in the States, with his ‘modern family’ approach and support of the civil rights movement particularly disapproved of in the South. ‘Camelot’ also had a dark side. The President’s numerous affairs, most famously with Marilyn Monroe, worried his staff and were known to the US intelligence services. His links with Frank Sinatra, the Rat Pack and his Mafia connections were another reason for concern. He was also in poor health for a man of his age, old war injuries and a chronic bad back often disabling him for days as he struggled to maintain a gruelling schedule. The Vietnam War was in its early stages. His instinct told him that it was a conflict the US could not win. However, he placed political pragmatism ahead of the lives of thousands of American troops fearing withdrawal would cost him votes. It was against this background that he embarked upon a tour of the southern states – a tour that cost him his life. We will never know if JFK would have achieved a second term of office, or indeed what he would have done beyond his Presidency. What we do know is that his memory still lives on, his politics, both in terms of style and substance, remain, and many of his twentieth century initiatives have made the twenty first century world a much better place.

JFK’S BRIGHT SIDE • • •

• • •

The creation of ‘Camelot’ gave not only the citizens of his own nation hope, but inspired a generation from across the world. His speech in Berlin that played a major part in stopping the spread of Soviet Communism into Western Europe – “Ich bin Ein Berliner” He was the first President of the twentieth century to genuinely challenge the abhorrent racism that existed in some southern states of the US, and his support of the civil rights movement. The Cuban Missile Crisis, when the world teetered on the edge of nuclear disaster. JFK held his nerve and restored his reputation on the international stage. After eight years of negotiation, he persuaded the USSR, the UK and the USA to sign a Nuclear Weapon Test Ban Treaty. He was a Democrat who recognised that tax breaks for successful entrepreneurs and businesses helped to grow the economy.

“All free men, wherever they may live, are citizens of Berlin, and, therefore, as a free man, I take pride in the words "Ich bin ein Berliner."

JFK’S dark SIDE • • • •

His mishandling of ‘The Bay of Pigs’ almost lost him his Presidency and could have led to a military takeover in the States. His close association to Mafia bosses and those close to them pre his election always meant that he was vulnerable to the very worst kind of ‘lobbying’. His extra marital affairs. His decision to persevere with the Vietnam War for reasons of political expediency. He would almost certainly have pulled the troops out had he won a second term as President.

the city of liverpool; college sponsor feature

The Rise of Apprenticeships

The City of Liverpool College is the new name for Liverpool Community College from September this year. The College, already the country's largest provider of apprentices to business, has been working with Downtown members and other City stakeholders to identify new programmes and services which will produce talented workforces, across the City's transformational sectors, year after year.

The College currently trains more than 10,000 Apprentices each year in over 100 industries for many big companies including; Waitrose, Primark, Argos and New Look. Some of the industry sectors include; creative and digital media, catering and hospitality, logistics, accounting, law, motor vehicle, human resources, pharmacy and many more. Liz Richards, business development executive at the College, said: “Apprenticeships are a fantastic way for businesses to harness new talent and address any skill shortages. Their content can be designed to suit the needs of the business and deliver skilled workers to aid future growth. “Grants are also available to help businesses recruit apprentices. The National Apprenticeship Service currently offers £1,500 to employers recruiting a 16 to 24 year old apprentice, which is in addition to the paid training costs for 16 to 18 year old apprentices and 50% for 19 to 24 year olds. This really is a fantastic incentive which has been very successful to date.” Their success recently attracted a visit from the Shadow Secretary for Work and Pensions, Liam Byrne MP. He said: “I was keen to find out more about The City of Liverpool College’s successful apprenticeship programmes and their work with local and national businesses. “The college is doing fantastic work and their employer engagement is first class. The College is doing everything it can to ensure their students gain the skills and job opportunities they need to carve out successful careers.”

As modern Apprenticeships continue to rise, do employers and parents really understand their value or do common misconceptions and a lack of understanding still prove a challenge? This financial year alone the coalition government invested £1.5bn in Apprenticeships, which resulted in a 14% increase in new Apprenticeships and 360,200 Apprenticeship starts in 2012/2013, according to the Department for Business, Innovation and Skills. With youth unemployment ever the hot topic, there has been more focus on on-the-job training that provides young people and adults with the opportunity to train and up-skill whilst maintaining a full time job and earning a living. Despite this, figures from recent studies have shown that many parents still don’t appreciate their worth and view them as a second rate option, which directly contradicts the reality. In fact research published by the Association of Accounting Technicians (AAT) found that completing an Apprenticeship can boost lifetime earnings by more than £150,000.

During his visit Mr. Byrne met with some of the College’s creative apprentices based at inbound marketing agency, Ph. Creative and private sector lobby group, Downtown Liverpool in Business (DLIB.) He spoke with IT Assistant, Sophie Begley, 17 at DLIB and SEO/PPC Executive, Michael McGrath, 21 and User Tester, Anthony Whitelaw, 16 at Ph. Creative, who all combine study at The City of Liverpool College with a full time position. Bryan Adams, managing director at Ph. Creative, said: “Our social digital apprentices are a vital part of our team who add a lot to our business. I knew that I needed new talent with bags of energy and enthusiasm. The college was very supportive from the beginning offering advice and guidance on our growth plans. “I would certainly encourage more businesses to be more receptive and embrace apprentices. They offer real value for money and can be an asset to your business. I see it as we are being supported by an organisation that is as entrepreneurial as we are.”

If you are interested in learning more about taking on an apprentice or the Apprenticeship Grant for Employers contact The City of Liverpool College’s business team on:

0845 013 1515 29

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You Only Sell Your Business Once!

Stephen Robinson, Director stephen.robinson@championgroup.co.uk

As every entrepreneur knows, having a clear strategy is essential when launching a business, but what about an exit strategy? The path to a successful disposal of your business has many challenges, both practical and emotional. Here’s our ten-step guide:

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1. Things to think about upfront Each business owner will have different motivations for wanting to sell their business but whatever the reason, timing is everything. Sell your business when it’s right for you, and when it’s right for the business. The first step is identifying a target date when you’d like to stop (think 18 months ahead as a minimum), and transition the business to the new owners. 2. Get a trusted advisor on board Appoint an advisor to guide you through the sale. Their role is to manage the process, prepare all documentation and advise on the structure and tax issues arising from the deal. 3. Think like a prospective buyer Identify the strengths, weaknesses, opportunities and threats of your business. For example, are there any company issues you need to resolve such as property disputes? What experience does your management team have? What is the historic and future financial performance of your business?

7. Due diligence When you have an interested buyer, it’s time to provide them with confidential information to enable them to make a decision on whether to buy the business. Prior to handing over the information, it’s vital you have both a Heads of Agreement and Non-Disclosure Agreement in place to afford you due legal protection and the commercial outline of the deal. 8. Typical deal breakers Although selling your business is an emotional process, don’t get emotional about being open and honest with information provided to potential buyers. If they get an unexpected surprise in the due diligence process, the deal could fall away. Equally, you should be on the front foot and be comfortable with their ability to do the deal. 9. Structuring the sale Cash on completion, performance related payments and earn outs, deferred payments, elevator deals, shares and a mixture of cash – each of these are variants on how a buyer will want to pay you for your business. It’s important at the outset to have in mind what sort of deal you’re looking for, and also be flexible – it could be that an earn-out secures consideration for you from upside in the business, whilst taking shares carries downside risk. 10. Talking to the Taxman about poetry The form of the sale will usually be influenced by choosing the most tax efficient route. Accordingly, tax planning is a vital initial stage in exit preparation and the selling process. “Plan the tax planning” is just one of a number of critical steps, but should be a key conversation at the very outset with your advisors.

4. What’s my business worth? We all have expectations and a view on what our business is worth. The reality however is that value is determined by how much a buyer is willing to pay. Don’t get locked into a figure at the start, but aim to uplift the value of your business by building investor confidence through the selling process. At the outset, establish a price range you’re comfortable with, from a minimum and to a maximum price. 5. What drives the value of your business? The things you have worked hard for and built over the years have value, e.g. major client accounts and contracts, the strength of your brand, or any intellectual property owned. How to maximise your value is where your advisors’ expertise really comes into play. They’ll work with you to present information, and to tidy up outstanding matters such that they don’t crop up during the process to put potential purchasers off. 6. Finding a buyer Essentially, you need to identify a number of potential buyers to provide options to generate interest, and create an auction process to negotiate on terms and price. You should be able to identify some potential suitors, but it’s also the role of your advisors to identify this list. They will profile from databases, contacts, sector knowledge and discrete enquiries to other professional advisors. From this, they will sketch targets for relevance, appetite, financial capacity and deliverability.

Tips, traps and tricks These are our closing thoughts: • Be clear about your timing and value expectations

• Understand the time taken and potential disruption to your business arising from the sales process

• Nobody buys a company’s history, so sell the future • Get your tax strategy sorted before you start • Think ‘buyer’ and view the transaction from their perspective

If you are considering selling your business and would like further guidance, contact me on 01772 735 000 or e-mail stephen.robinson@championgroup.co.uk

Have You Considered EMI’s?

Gill Molloy, Group Tax Director gill.molloy@championgroup.co.uk

An Enterprise Management Incentive scheme (“EMI”) is an approved employee share scheme, designed to help companies recruit and retain key employees by giving them the option to own shares in the company. The tax advantages that can be obtained with EMI’s are very beneficial to both parties and recent changes have made them more attractive than ever before.

The share options are granted to employees who can then exercise the options, within a specified time frame. Employers can also choose to restrict the exercise of the options; for example, they may want the employee to achieve particular performance objectives before they can exercise the shares. The tax advantages that can arise from an EMI scheme are outlined below. 1. On grant of the option to the employee The employee does not have to pay income tax and the employee and the employer don’t have to pay National Insurance Contributions. 2. On exercise of the option If the exercise price is at least equal to the value of the shares when they were granted, the employee does not have to pay income tax. The employee and the employer also wouldn’t have to pay national insurance contributions. The company would also be eligible for a corporation tax deduction on the difference between the exercise price and market value of the shares. 3. On the future sale of shares Where a gain is created, capital gains tax is payable by the employee. If the employee has held the shares for 12 months however, Entrepreneur’s Relief may be available to reduce this tax to 10%. In order to qualify for EMI’s a business must meet certain conditions; for example it must have less than 250 employees and the gross assets must be less than £30 million. There are also rules surrounding the value of the shares and the type of employee they may be granted to.

a c c o u n t a n t s

HELPING BUSINESSES GROW

If you are considering EMI’s and would like more information contact me on 0161 703 2500 or e-mail gill.molloy@championgroup.co.uk

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DQ MAGAZINE

he ninth annual City of Liverpool Business Awards was hosted on a wonderful night in July at the spectacular Sefton Park Palm House by Downtown Liverpool in Business, in association with Liverpool Vision. The sell out crowd of over 250 business leaders enjoyed an evening which celebrated some of the major success stories from across the Liverpool city region’s private sector; and they were treated to a sparkling awards ceremony, followed by entertainment from the award winning Toni James band, and an aftershow party at the city’s newest hotel, The Richmond. The big winners on the night were John West Foods who deservedly walked away with the ‘Business of the Year’ accolade, whilst the Business Improvement District Company was presented with the ‘Outstanding Services to Liverpool’ award. Downtown Liverpool chairman David Wade Smith commented: “This event has become a major highlight in the city’s business calendar, and the quality of the winners, and indeed the nominees, demonstrates that Liverpool is a place that boats some fantastic businesses and entrepreneurs. We are already looking forward to the tenth City of Liverpool Business Awards next year.”