SPRING
2017 RECENT DEVELOPMENTS HIGH PERFORMANCE UNDER PRESSURE IN THE CORPORATE WORLD Conor McCarthy
TOP 10 PRESENTATION SKILLS TO MOVE YOUR AUDIENCE HOW TO PASS THE TORCH TO A CAPABLE GENERATION 5 WAYS TO BOOST STAFF COLLABORATION WITHIN YOUR CURRENT STRUCTURE LEGAL BRIEFS MEET THE TEAM
TABLE OF CONTENTS Recent Developments
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High Performance Under Pressure In The Corporate World
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5 Ways To Boost Staff Collaboration Within Your Current Structure
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Top 10 Presentation Skills To Engage Your Audience
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Business Briefs
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How To Pass The Torch To A Capable Generation
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Legal Briefs
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Meet The Team
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Range of Services
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Welcome to the spring edition of our new newsletter. H.D. Keane is pleased to launch its new Newsletter. We welcome feedback, suggestions and input from our clients. Over the course of the coming months, we hope to publish articles of practical use and interest and we hope that you find this service helpful. Indeed, if there are any particular legal matters which interest you please let us know and we will try to provide information on any such area of law. In Ireland, we have all had to endure a lot of change over the last number of years due to the recession. The legal profession is no different. As a firm, we have had to diversify our skills in what have been difficult financial circumstances. Thankfully, there has been something of an upturn in the economy. Our range of services is expanding and we look forward to providing many more years of expert and professional legal advice to our clients.
All the team at HD Keane Solicitors.
Recent Developments
Criminal Justice (Victims of Crime) Bill 2016
This legislation will hopefully soon pass through the Dail and Seanad. Once it is enacted, it will establish minimum standards for the rights, support and protection of victims of crime. For many years in the UK, victims of crime have had a legal voice and status. The European Union also passed a Directive some years ago, to provide for minimum rights to information, support and protection for all victims of crime. Hopefully, the new legislation in Ireland will put this into effect. We look forward to keeping you up to date with further developments in relation to this legislation
Help to Buy First Time Buyers
One positive outcome of Budget 2017 was the introduction of the “Help to Buy� (HTB) incentive. This has recently been launched by the Revenue Commissioners. It is designed to help First Time Buyers fund the deposit required to purchase or build a new house/apartment which they intend to use as their home. The HTB provides a refund of Income Tax and Deposit Interest Retention Tax (DIRT) paid over the previous four years. HD. Keane, Solicitors have submitted its application to be registered with the Revenue Commissioners for the purposes of supporting and verifying such applications. We look forward to working with our clients to assist in this regard. More details of the incentive can be obtained on the Revenue Commissioners website.
If you have queries, please contact Nicholas Walsh at nicholas.walsh@hdkeane.com or on 051 874856
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HIGH PERFORMANCE UNDER PRESSURE IN THE CORPORATE WORLD After 10 years in Banking, Conor McCarthy established a business based on a fascination he had developed in the area of high performance. This business (Kaizen Performance) is now working with some of the biggest companies in Ireland. Here, Conor explains how a motivation to combine his sporting life, his corporate experience and his academic interests lead him on a journey through some of the world’s most notable high performance environments and towards a realisation that high performance can be pursued with more than just lip service. THE FLIGHT
THE LEARNING PROCESS
There’s a fascinating clip on You Tube which simulates US Airways 1549. It’s the flight that crashed into the Hudson River in New York and the first time ever that a commercial airline flight had crash landed on water with zero fatalities. In this clip, the actual voice recording of the cockpit and the air traffic control is synched with a computer generated video of the plane in motion over the New York skyline. It paints a very different scene to the one that Hollywood would have us expect. There are no raised voices and no indication of bags flying wildly through the cabin. In fact, the voice of pilot Chelsea ‘Sully’ Sullenberger and the air traffic control crew is as measured and as clear as you would expect it to be on a routine flight. This 2 minute clip perfectly encapsulates the concept of high performance under pressure.
I was hooked and wanted to know more. I decided to set about identifying other key areas of high performance and then seeing if I could visit the high performance environments which espoused. these values most. My starting point in terms of personal experience was such that I had reached a management position within the corporate banking world with BOSI and latterly with Certus. I had also played football for Cork for 8 years, played in an all Ireland final and won a few medals. But even in that, there was an element of regret in not having achieved more and besides I knew that the level of experience I had obtained up to that point wasn’t really enough in any case. There were also many ‘bluffers’ in the training and development space too and I knew that if I was to be valid in any way, shape or form, I had to experience genuine high performance across a number of domains. Access to these high performance environments appeared daunting but what I began to learn is that legitimate high performance environments appreciate learning and are often more than willing to share their experiences with people who they can be sure are only trying to learn more themselves.
LEARNING IN LONDON
That was back in January 2009 and for a guy who had a fascination with high performance; it really struck a chord with me. In the aftermath, Sully Sullenberger talked about how he not only loved his job but how he had always trained for scenarios that would happen in the real world, and not just in a training simulator. It convinced me that most battles in business, in sport and in life are won before they are actually fought. The question which I struggled with was this; how do you prepare for that level of high performance under pressure? How do you prepare to win first and go into battle second as opposed to going into the battle first and then seeking to win?
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I started by trying to find out how one might communicate to corporate high performers in a way which resonated with them. In researching the executive education market, it became clear The London School of Business was the global leading provider in this area, a school where high achievers in industry went to get even better. I duly enrolled in their executive education programme on Forensic Financial Analysis. This comprised an intense week long period of learning, along with some very heavy pre and post reading. The fascinating part about watching high performers being educated to improve even further was that the content wasn’t the most important part. The real point of difference was the merging of the content with a guided discovery approach to education wherein these individuals came to the right answers in a way which felt almost self-directed.
THE DODGER WAY
PRESSURE IS NECESSARY
I researched the best list of companies to work for in the States and learned that on 3 separate occasions the LA Dodgers had been listed in the top 100 by Fortune Magazine, the only sports franchise on the list. I went there and spent some time with former owner Peter O’Malley. I came to understand how he and his father before him had engendered in his staff so much loyalty and attachment to the franchise that these people came to live their lives in ‘The Dodger Way’, not just at work but at home and at play as well.
The one thing I have learned about any group of people working towards a common goal is that in order for high performance to occur, there has to be pressure. We spend a lot of time and sometimes money, trying to avoid the concept of pressure like it’s a disease, when in actual fact; it’s entirely necessary if genuine high performance is to occur. Without pressure, it’s easy. We’re in the comfort zone. The best in the world however accept the pressure, it’s not that they don’t feel it, they simply manage it better. When they start to coast, they know they must be going downhill.
CULTURE IN NEW ZEALAND
ENGAGEMENT HAS TO RESONATE
I continued by reading voraciously on the subject of high performance and when the All Blacks won the rugby world cup in 2011, it came to represent another brilliant example of high performance under pressure. In the book Legacy; What the All Blacks can teach us about the business of life, James Kerr describes how the group delivered when the expectation and circumstance was at its most intense. I learned that it wasn’t their size or their speed or their skill alone which had generated this victory, in fact it was the cultural transformation that the New Zealand rugby side had undergone which transformed them from world cup under achievers to winners in 2011. Eventually, I managed to convince my wife to go to NZ on honeymoon so that I could spend an additional two weeks in that All Black environment after the honeymoon part of the trip was over.
How do they manage it better and how can these areas be coached into a group of people in a corporate setting? It starts with Engagement - the narrative in most companies is that the workforce feels they are overworked and underpaid. However, there is in fact very little evidence to suggest that increasing wages will in fact lead to greater levels of engagement within a workforce. It may even be counter productive. What’s more, most firms simply cannot afford to increase wages across the board. Labour is simply too expensive. In any case, money may not even be the answer. In his book on motivation entitled Drive, Daniel H. Pink asserts that the secret to engagement is the deeply human need to direct our own lives, to learn and create new things, and to do better by ourselves and our world. Indeed, a significant body of evidence has now emerged which suggests that a well structured, coherent engagement or wellness programme will increase morale, lead to greater levels of motivation, generate a greater sense of attachment in the company and ultimately lead to greater levels of productivity and engagement.
THE PSYCHOLOGY OF HIGH PERFORMANCE When an opportunity came up for redundancy within the Banking world, I made the decision to go for it. High Performance was becoming big business but again there was going to be a need to ground myself in the academic theory if this was going to be a credible career choice. So I undertook a Masters in Applied Psychology and Coaching by night in UCC. As with any course, the real learnings were generated through life experience and the practical focus which had been obtained through the high performance environments I had visited. The final piece of the jig saw (for now) will be a visit to the Navy Seals in Coronoda Island at the end of October. Whilst there, there performance psychologist Ryan Maid will try to explain to me the method behind their seemingly torturous training programme, and more importantly what makes those recruits get through it.
The key point of difference between effective and ineffective programmes tends to be in regards to the level at which these programmes are adapted specific to the needs of each particular organisation. One size does not fit all. Engagement surveys are useful as a snap shot diagnostic but they can often make for bleak reading, no matter how many times they are re-taken in an effort to get to ‘the right answer’. To move forward, companies will need to genuinely link in with the workforce’s motivational triggers and so a composite profile needs to be established. What is the broad demographic range? How active are they? What really drives them? Through a relatively mindful diagnostic phase, a company should then and only then be able to integrate a well structured and coherent engagement programme with its staff.
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TRAINING MUST BE FOR THE REAL WORLD While engagement is one side of the performance improvement equation, skill acquisition or training is the other. In business, like sport, certain core skills in the area of management, leadership, service, sales and strategy are needed to by even the fittest, most engaged workforces. However, these skills need to work beyond the training room, back in the office and in front of clients. Basically, they have to be performed under pressure. This is why most training simply does not work. The courses we go on and pay a lot of money for tend to centre on a large manual which gets moved from the pedestal to the garage, to the attic to the bin. Training in any domain must start with the fundamentals of performance under pressure which is exactly what the real world entails. For content to be effective thereafter, it has to be simple, structured and memorable in order to generate an alignment and a commonality of approach so that the collective knowledge and experience of staff is harnessed for the challenge ahead. At its very core, that’s what high performance means for me. Generating engagement amongst a group of people in a meaningful way and integrating a level of skill acquisition for the real world rather than just the training room. As Sully Sullenberger might say, you gotta love your job and then prepare for that job happening in the real world, not in the simulator.
CONOR MCCARTHY BIOGRAPHY Conor McCarthy is the Director of Kaizen Performance, a company which specialises in engagement and training programmes for the Corporate Sector. Conor received a Bachelor of Commerce Degree (1st class honours) from University College Cork (UCC) in 2004. After starting his career through the Bank of Scotland (Ireland) Graduate Programme, Conor spent 10 years progressing successfully in the commercial banking industry. During this time, Conor worked on significant projects with Lloyds Banking Group and Permanent ptsb, whilst also becoming a fully regulated financial advisor. During this time, Conor maintained a successful inter county football career whilst also completing further executive education at the London School of Business and The Irish Management Institute. In 2014, Conor undertook a Masters in Applied Psychology (Coaching) at UCC and has put this experience, along with significant further research into the area of high performance, to good use in his role at Kaizen.
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WAYS 5 to BOOST STAFF COLLABORATION
Within Your Current Structure
In the past, we were taught that in order to encourage staff to collaborate, we had to provide more incentives. However, it is possible to encourage collaboration even when you don’t have the resources to change organisational structures. Here’s how:
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KNOW WHEN TO PUSH FOR COLLABORATION
When you push staff to collaborate on every minor detail, you open yourself up to more issues. Instead, focus on fostering collaboration only on the more complex activities where input from multiple subject experts is required. Include those specialised staff members without whom the project could not be completed.
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PERSUADE THEM USING QUANTITATIVE EVIDENCE
Look for internal sales data as evidence that smart collaboration is good for more than just company morale, but that it offers strategic advantage that can drive the team to capture market share.
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CREATE GREAT RELATIONSHIPS
One way to reduce the cost of collaboration, is to encourage beneficial relationships early on. Pair experts with people who could use assistance, thus creating personal relationships that will make uptake more likely.
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CREATE HEALTHY COMPETITION
Celebrate advances that result from collaboration to stir up healthy rivalry among their peers. Use friendly contests and small awards as incentives to encourage people to move in the right direction.
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SPEED UP THE RESULTS
It can take a while before you reap the financial benefits of collaboration, so it makes sense to reward employees’ inputs during the beginning phases of new collaborative processes.
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TOP10 Presentation
Skills
TO ENGAGE YOUR AUDIENCE
Every entrepreneur should know how to deliver a presentation. Most people have a fear of public speaking and even delivering a presentation - it’s right up there with moving house, spiders and death! - however, when it comes to communicating the important points and compelling your audience, practice makes perfect. Just like any other science, the art of presentation delivery can be developed, practiced and fine-tuned. As a presenter, your mission is to make your audience feel that they are participating while you evocatively share your business’ value proposition. Use these 10 techniques to create a perfect presentation.
Engage and Create a Hook Your power as a presenter does not lie in what you say, but in what you opt not to say. Establish the purpose of your presentation, and use that as a guideline as to what you decide to include and exclude. Give your audience an incentive to listen by using a hook, which might be an anecdote, a video, a startling statement or a question. A prompt to get involved will often entice your audience to become excited about what you’re about to tell them. Jamie Oliver started his 2010 TED Talk with a strong hook that instantly captivated his audience: “Sadly, in the next 18 minutes, while we chat, four Americans will be dead from the food that they eat.”
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Foreword, Summary & Lead With Key Message Right at the start of your presentation, provide an overview of your presentation. By telling the audience what you’re going to tell them, you create anticipation. The body of your presentation explains your message in more detail and the summary at the end brings it all together. Once you have hooked your audience, you need to keep them engaged. In most cases, presenters try to build credibility by structuring their presentations to build up to their key messages, rather than leading with it. However, in a world of instant gratification, audiences have a limited attention span, which means that using the old approach will cause you to lose your audience’s focus before you reach the main purpose of your presentation.
Use Your Body To Convey The Message Only about 7% of what your audience learns from your communication, can be attributed to your words. The other 93% is non-verbal, which includes body language. In order to make more impact, use your body wisely: • Be conscious of your body language • Maintain eye contact • Use hand gestures
Relay an Anecdote The secret to a successful presentation lies in your ability to combine information in a compelling manner. Structure the presentation around your main message in order to prevent it from becoming muddled. Throughout the presentation, emphasise and revisit your core message to keep it from becoming muddled and to ensure that your audience understands and remembers. People love listening to a good story, so don’t hesitate to use a personal, purposeful and impactful story to narrate your message. Most people are curious to learn and if your story teaches something, they will be enthralled. The audience will empathise and become more engaged in your presentation. If you leave it with an authoritative outcome or takeaway, they will be more likely to sign on the dotted line.
Focus on the Audience Keeping your attention focussed on the audience is crucial. Slides are great visual aids, but if you’re focusing on the computer instead of on your audience, you will lose their attention. If you don’t have an assistant with whom you have practiced, you may want to invest in a clicker. A clicker will enable you to progress the slides without disrupting your presentation. During your presentation, include the audience to show that you are tuned into their needs. Use the word ‘you’ when you relay data. Don’t focus on the selling points without explaining how that can be of benefit to your audience if they choose to do business with you. For example, don’t say ‘‘We offer 24/7 support’’. Instead, say ‘‘We have a 24/7 call centre, which will be available to you, night and day. We also offer an online chat facility, which you can access any time. If you decide to join us, we will assign a dedicated account manager to you’’. By leading with your most important message, you can increase the number of people who hear it. Use the rest of the presentation to build your story and gain credibility by keeping them engaged.
Keep Slides Simple Don’t distract your audience by putting up text-heavy slides. Instead, stick with strong, emotive imagery that is light on text.
Share Your Passion If you’re passionate about your business, let it show. While you have probably worked hard in your business, it is also likely a lifelong dream. This presentation is probably a step towards fulfilling your company’s growth, and therefore, something to be excited about. Unless you’re excited about your venture, it will be impossible for your audience to be enthusiastic.
Use the Meaningful Pause When used at the right time and with moderation, pauses can be a powerful tool. It can add drama and it may give your audience room to breathe and truly allow your message to sink in. Use a pause to allow your audience to digest the key points of your presentation.
Use Humour Depending on the type of presentation you’re delivering, humour can be a great tool for building rapport with your audience. It’s one of the easiest ways to break the ice and set your audience at ease. However, if you don’t enjoy comedy, you can still connect with your audience by showing vulnerability and letting them relate to you by telling a personal story. Use your discretion to choose the appropriate time and topic for your humour, and remember that humour should always go up - not down. Don’t joke about your staff or clients. Selfdeprecating humour is always the funniest.
Practice Makes Perfect Some of the most prolific speakers practice their presentations literally hundreds of times. Not only is it a great way for ensuring that you know your presentation extremely well, but it is effective in alleviating any fears of public speaking. Finally, end with a powerful conclusion and a compelling proposition and you will stimulate your audience to take action.
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IRELAND’S LARGEST WINDFARM OPENS FOR BUSINESS Ireland’s largest windfarm, Energia’s 95MW windfarm at Meenadreen in south Donegal, has officially started supplying power to homes and businesses across Ireland, setting a new Irish record. The windfarm contains 38 turbines and is capable of producing enough electricity to power 50,000 homes. It is the culmination of years of development work and construction, which started in 2014, took 26 months to complete. Energia Renewables has invested €145m to develop the windfarm, bringing its total investment in wind farms developments to over €500m. Crucially, Meenadreen will reduce the island’s carbon dioxide emissions by 100,000 tonnes each year. Meenadreen has 38 Nordex N90 2.5MW turbines and was
NEW JOB CREATION AS THREE NEW COMPANIES SET UP IN IRELAND About 35 high-skilled jobs are to be created as three new companies set up operations in the Republic. UK wave energy tech company Wavepower Technologies is to establish a development research group at the Entrepreneur Ship in Ringaskiddy, Co Cork, creating up to 10 advanced engineering research jobs. The Entrepreneur Ship is part of a strategic partnership between University College Cork, Cork Institute of Technology and the Naval Service established to unlock Ireland’s maritime and energy potential. Wavepower CEO, Mark Gillan commented that the company has an ambition to develop world-leading technology to capture the immense energy resource in ocean waves. Acknowledging it was not a quick or easy task Mr Gillan asserted the company’s commitment to its vision and believes with the right ingredients they can find a way to overcome the challenges of the marine environment and develop commercially viable wave energy convertor technology.
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financed by loans from NordLB supported by Euler Hermes. Construction works were carried out by Denis Moriarty “the Kerries” Limited and electrical works by Kirby Group Limited. Engineering services were provided by Wind Prospect and Jennings O’Donovan, with legal support from Arthur Cox. Energia Renewables is among Ireland’s leading providers of sustainable green energy and 25% of Ireland’s wind power is provided through Energia to homes and businesses. Energia currently supplies almost 1,000 MWs (1GW) of renewable energy, with more on the way. Peter Baillie, MD of Energia Renewables commented that Energia has invested over €350m in developing and constructing new windfarms and that the company would like to thank the local community for their support. The Meenadreen windfarm will be providing further community funding for the local areas and local authority rates for the lifetime of the windfarms.
Separately, 12 Dublin-based jobs are to be created with software company Kochava, which is based at the Fitzwilliam Business Centre in Dublin 2. The hub will be the company’s European headquarters for product support and regional sales for clients and prospective clients. The main functions of the operations will include sales, marketing and technical support. Misfits, a US-registered digital agency and philanthropic organisation, has selected Galway for its global headquarters. It is creating 13 new jobs at its new startup subsidiary, Snapstory. The new Snapstory enterprise Android application allows non-profit organisations to measure, evaluate and tell authentic stories about the work they do across the world. All three companies were introduced to the Republic through ConnectIreland, the company responsible for delivering the Government’s Succeed in Ireland initiative. ConnectIreland Chief Executive Joanna Murphy said the announcements were proof “the power of harnessing the connections and goodwill built up by generations of Irish people at home and abroad”.
AMAZON PLANNING €1BN DATA CENTRE CAMPUS IN DUBLIN Internet giant Amazon is planning to build a €1bn data centre campus in Dublin as it tackles a global surge in the use of its web services, as well as its own online shopping network. The company has just submitted plans to build a huge, 20,739 sq metre (223,000 sq feet) data centre in Mulhuddart. The data centre is likely to cost up to €200m, but Amazon said it might build as many as seven more data centres at the 26-hectare location owned by the IDA, which is due to become a data-storage facility campus. That could involve an estimated future spend of another €700m. Those data centres would each be smaller than the
UNEMPLOYMENT ON COURSE TO DIP BELOW 6% LATER THIS YEAR Unemployment is now on course to dip below 6%, close to what economists consider full employment, by the middle of this year following another monthly slide in the official jobless rate. The latest data for February, released by the Central Statistics Office (CSO) data, released in early March, put the State’s unemployment rate at a nine-year low of 6.6% in February. The number of workers classified as unemployed fell by 2,900 to 145,100 during the month, which equates to an annual decrease of 36,200. The Economic and Social Research Institute (ESRI) has predicted the economy will return to full employment, or an unemployment rate of 5% by 2020. However, at the current rate of job creation this may be achieved sooner. Davy analyst Conall Mac Coille said he now expected unemployment to fall to below 6% by the middle of this
WATERFORD LEADS DRIVE TO ESTABLISH IRELAND AS GLOBAL AGRI-TECH HUB The President of a leading Institute of Technology has claimed that Ireland is home to the top, international players in the agriculture and ICT industries and has the potential to become a Global leader in smart agriculture. Prof. Donnelly is already globally renowned as the co-founder of the Telecommunications, Software and Systems Group (TSSG) at Waterford Institute of Technology, a major incubation hub for ICT innovation. He now wants technology innovators to partner with leaders in Irish agriculture within the region and across Ireland to drive sustainable regional growth and put Ireland on the global map as leaders in the agri-tech
one currently planned. Construction of the latest Amazon data centre - codenamed ‘Project G’ - is set to begin this year and will take about 18 months to complete. At the peak construction phase, about 400 workers are expected to be on site. Amazon, headed by Founder and Chief Executive Jeff Bezos, has just applied to Fingal County Council for permission to build the data centre, which will bring the total it has around the capital close to 10. Amazon uses its data centres for its own internet operations, but also for its web services business, which offers data hosting to other companies. Its global clients include firms such as Netflix, Expedia, Unilever and Kelloggs. Amazon said it had chosen the site in Mulhuddart for its latest data centre, partly because it is close to its other facilities in the area.
year. Mr Mac Coille said returning migrants and low participation rates suggest that there is still slack in the labour market. He said net emigration had flattered Ireland’s unemployment rate in the past. However, he said Ireland experienced its first year of positive net inward migration of 3,100 in 2016, helping to add to the labour force. IDA chief executive Martin Shanahan said that while the trend is welcome it shouldn’t be taken for granted and Ireland needed to continue to focus on its competitiveness. Recruitment website Indeed, meanwhile, highlighted the top 10 roles being sought by employers in Ireland, which included sales managers; nurses; software engineers/ developers; and accountants and auditors. The group’s economist, Mariano Mamertino, said that as Ireland‘s unemployment falls, employers will find it increasingly difficult to source suitable candidates to fill their open roles. Companies must develop smart ways of finding this talent or face missing out on growth.
industry. The alignment of the ICT and agriculture industries has the potential to totally re-energise the Irish economy outside of Dublin and totally transform our regional economies he says. Speaking at the second day of the eDIGIREGION ‘Sustaining Regional Innovation and Growth Through Partnership’ conference at the WIT Arena, Prof. Donnelly said that Ireland is already a global player in the agricultural industry and 9 of the top ICT companies have based the European headquarters here. He believes Ireland has the potential rather than Ireland as the potential to be a leader in smart and precision agriculture through the combination and the alignment of the ICT industry and the agriculture industry. We have established and put together a proposal for investment in precision agriculture. Its focus is to IT and to use the knowledge within the region to drive a new agritech industry.
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HOW TO PASS THE TORCH TO A CAPABLE GENERATION You’ve spent a lifetime building your business. The process of succession has many challenges, and passing on the torch is a challenge for many business owners. Many founders have a legitimate fear that their children may not run the family business as well as they should. How do you ensure that your legacy and relationships stay intact? Most often, the importance of succession is shrugged off or not prioritised. Founders often have a hard time letting go of their businesses and allowing the next generation to take over the reins. Unfortunately, it’s this fear - hidden or obvious - that can thwart even the best preparation. Recent studies have shown that a succession steering committee can provide an effective means for formalising the succession process. A steering committee should be made up of senior management and board members, and its main function should be to manage the governance and succession process. This will allow business founders to be confident that they are handing over the organisation to a capable next generation. Successful succession depends on everyone’s commitment to the following: • Avoiding emotional conflicts among family members. • Avoiding any empty threats or promises. • Avoiding prioritising gender or birth order over capability or dedication to the business. Generating rivalry among siblings poisons the business, so it is important to avoid that at all costs.
Siblings in Business Research has shown that adult children whose parents have passed away typically become closer in a bid to eliminate competition and survive. Of all Irish businesses, three-quarters are family owned and operated and that offers many benefits, including: • shared vision; • a shared understanding of the business dynamic; • emotional attachment to the business. These benefits are developed over a lifetime, and bode well for the success of the business. However, it is not without challenges to the business. Unreasonable competition, self-esteem issues and learned behaviours are some of the threats family businesses face.
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How to Develop A Greater Sense of Good in a Family Business The key to successfully passing on the torch, is to develop a sense of greater good - summum bonum - early on. Encourage all the family members to direct their focus towards the greater good of the business, namely improvement and innovation. You can develop a sense of summum bonum by encouraging all family members to first work elsewhere before joining the family business. By doing this, it makes joining the family business an option rather than an obligation and removes any potential resentment. Eventually, when a person decides to join the family business, he or she will have independently gained a wealth of experience and knowledge. While giving each sibling the time and space to find their own niche, the family business will enjoy the benefit of a broad base of ability and experience. Sometimes, family members have trouble working together and sharing common space. The Dassler brothers were both shoemakers who ended up in a bitter feud, only to become enemies and major competitors. Each founded their own competing brand - Puma and Adidas - upon going their separate ways. Allow family members to identify their own natural strengths and encourage them to advance and excel in their respective areas in order to avoid internal rivalry. It would be worthwhile to ask each family member to write down his or her goals, categorising them by short, medium and long-term. Using this as a guideline, it will help with planning the company’s future path.
Encourage Open Communication Siblings in business should consistently work at promoting open and honest communication. It’s about more than just keeping your sibling in the loop regarding updates and daily discussions; it’s about multifaceted, meaningful communication that involves a family forum approach and allows an equal playing field where both participants can bring bigger issues to the table. During a clash of opinions, parties should be able to talk privately in a professional manner without having to involve other staff members. Furthermore, open communication will involve still being a family when you’re both off the clock. It means making time to do things together on a recreational basis.
Governance in Defining Roles
Communication is important when it comes to speaking about the business and siblings in front of your children - who will one day succeed you in the family business. Avoid detailing your family members’ arguments and mistakes and do remember to mention achievements and positive interactions.
Reinforce stability by defining each individual’s role and providing exact descriptions of responsibilities within the realm of the family’s shared vision for the business.
Unfortunately, second-generation failure is a frightening reality experienced by a large percentage of businesses. By setting up clear communication expectations, you can avoid this common pitfall.
Corporate governance documents should clearly outline the rules and the company’s chain of command. This will provide a guideline for settling conflicts in a decisive manner.
Communication can ensure that your family business flows freely and works efficiently. Siblings working side-by-side can provide a productive and satisfying environment for success.
Another important factor to agree upon and to set out in the document, is the process of including spouses in the business as it can lead to controversial managerial issues. By agreeing on the terms of these issues in advance, it will set the tone for fair treatment and everyone will have an understanding of how things work. While it may be an awkward topic to broach at first, it is well worth the effort to discuss and draft a blueprint that is in the best interest of the family business. Discussing the ways in which everyone can succeed together is key to a happy working environment.
Separating Family From Business Hosting regular ‘‘family forums’’ will give family members the opportunity to address any conflicts, issues and arguments outside of the business. Ideally, these meetings should be put on the calendar to ensure they do take place. At the meetings, each person should be afforded the opportunity to have his or her voice heard. Encourage open discussion, but keep a few rules: • Each individual must be clear and honest about his or her issues. • Nobody may use any inappropriate or hurtful language and certain phrases should be banned, such as ‘‘you’re so bossy’’ or ‘‘you’re Dad’s favourite’’. Outside of the family forum, everyone should liaise with staff and family members in a professional tone. There should be no room for family language in business conversations in order to help prevent learned emotional behaviours.
Conclusion: SUCCESSION PLANNING TIPS »» Include as much dialogue as possible into the planning process to ensure fair, transparent and effective succession planning. »» Clarify the company’s vision and future together with other family members as an effective first step in combining the vision of the company with the skills of the family members. »» Create a diagram featuring each staff member’s name, job title and family connections to get an idea of what the business structure may be once the owner has left. It will also enable everyone to focus on the best solutions to the many questions resulting from succession. »» Rather than stepping down bluntly, allow the outgoing MD to gradually relinquish control. He might progressively step away by becoming a non-executive director or chairman, or take on another separate role. »» Discuss the process of succession early on with the next generation, and empower him or her by providing opportunities for development, coaching and providing support. This is also a great opportunity for implementing new and innovative ideas. »» Keep staff, suppliers and customers abreast of the current MD’s plans to relinquish his or her role to the new MD. Introduce them to the person who will be taking over the role and communicate proposed changes and the company’s new vision in advance in order to maintain credibility and relationships and to prevent stakeholders from losing confidence in the company as the result of change of leadership.
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LEGAL BRIEFS FITZGERALD SETS UP COURT REVIEW IN BID TO REDUCE COST OF CIVIL LITIGATION A major Government review of the civil justice system is to be carried out amid concerns over the cost of litigation and the transparency of court proceedings. Tánaiste and Justice Minister Frances Fitzgerald said a review group would be led by the President of the High Court, Mr Justice Peter Kelly, and would be given two years to report. Included in its remit will be identifying measures to reduce the cost of litigation, improving procedures and practices to ensure timely hearings, and encouraging alternative methods of dispute resolution. It will also review the use of electronic methods of communications, including e-litigation and the extent to which pleadings, submissions and other court documents should be available or accessible on the Internet. Currently the vast majority of cases are paper-based and
MEDIATION BILL LEAVES POSSIBILITY OF FUTURE MEDIATION REGULATOR A regulatory body for Irish mediators could be established in the future, Justice Minister Frances Fitzgerald has said. Ms Fitzgerald introduced the second stage debate on the Mediation Bill 2017 in early March. Section 12 of the Bill, which did not form part of its General Scheme, makes provision for a Mediation Council of Ireland. Ms Fitzgerald said it stems from submissions received and observations made by the Justice Committee regarding regulation of mediation. She commented that the mediation sector is made up of a diverse range of bodies, with 7 such
PUBLIC TO BE CONSULTED ON REALISTIC IMITATION FIREARM CONTROLS The Department of Justice has launched a public consultation on regulations governing realistic imitation firearms. Minister of State David Stanton said that whilst acknowledging that law abiding members of the public gain enjoyment from the responsible use of Realistic Imitation
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there is only very limited public access to documents filed in courts, an issue which can cause considerable difficulty in the reporting of cases. In comparison, most courts in the US have systems which allow affidavits, motions and rulings to be accessed electronically by the public.The current system of civil justice is largely derived from the Judicature (Ireland) Act, which dates back to 1877. The Justice Minister said that the aim of the review is to deliver a more efficient and effective Irish legal system in regard to the area of civil justice and the group would make recommendations for changes with a view to improving access to civil justice in the State, promoting early resolution of disputes, reducing the cost of litigation, creating a more responsive and proportionate system and ensuring better outcomes for court users. The review will also include an examination of the law on discovery and look at removing obsolete, unnecessary or over-complex rules of procedure. It will also examine ways of supporting vulnerable court users, including children, wards of court and litigants who are ineligible for civil legal aid.
bodies attending the public hearings which were led by the Joint Committee. There were further submissions received from a number of other interested party and therefore the Bill does not set out to impose a rigid regulatory structure on the sector. However it does provide for the possible future establishment of a body to be known as the Mediation Council of Ireland under certain conditions. Section 12 allows the Justice Minister, if satisfied that a body “complies with the minimum standards set out in the Schedule and is, at the same time, sufficiently representative of the various mediation interests involved in the mediation sector” to follow a consultation process, make an order declaring that the body will be recognised for the purposes of the legislation as the Mediation Council of Ireland.
Firearms, they do pose a threat to public safety when misused. The Minister stated that he wanted to protect lawful use by ensuring the right regulatory framework is in place. All interested parties are therefore invited to express their views on matters such as sale, purchasing and marking of Realistic Imitation Firearms. Under the public consultation process, organisations or individuals wishing to contribute to the review are invited to send their submissions by May 1st. Further details are available on the Department of Justice Website.
John Breen BCL PARTNER John Breen was awarded an Honours Degree at University College Cork in 1994. John resides locally with his wife and two children. He trained with H.D. Keane Solicitors and joined the firm as qualified solicitor in 1998. He became a Partner in 2003 and Managing Partner for the firm in 2012. He practices in most areas of law with particular emphasises on Personal Injury Claims, Commercial Conveyancing and Employment Law. Contact John
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Nicholas Walsh LLB Nicholas Walsh qualified as a solicitor in 2005 having completed his studies at the College of Law, Chester and trained in the UK. He joined the practice in 2005 and became a partner in 2012. He deals mainly in the area of commercial/banking/agricultural conveyancing, and family law. He completed a post graduate Diploma in Family Law in 2008. He is a former president of Waterford Law Society and resides locally with his wife and four children. Contact Nicholas
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Nicola Walsh qualified as a Solicitor in 2011 having completed a Bachelor of Arts Honours Degree in Legal and Business Studies. Nicola specialises in general conveyancing, wills, probate and the administration of estates, estate planning and litigation. Contact Nicola
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