Irish Director Winter 2014 by Whitespace

Irish Director Irish Director

THE OFFICIAL MAGAZINE OF THE INSTITUTE OF DIRECTORS IN IRELAND ISSUE 34 • WINTER 2014/2015 €7.50 STG£6.70) IRISH DIRECTOR ISSUE 34 • WINTER 2014/2015

A VIEW FOR 2015

Business leaders share their thoughts on the year ahead

BUILDING CONFIDENCE

DIRECTIONS

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www.businessandleadership.com

NEW

How the construction sector is bouncing back

TERENCE O’ROURKE ON HIS NEW NON-EXECUTIVE CAREER

BOARDROOM

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Letter from the editor

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Welcome to the autumn issue of Irish Director. In our director profile we talk to philanthropist Loretta Brennan Glucksman, who has contributed so much to Ireland over the last 25 years in a wide range of areas, including peace, arts and education. In our One to Watch section, we look at the story so far for Athlonebased OxyMem, a UCD spin-out that is winning accolades for its breakthrough wastewater treatment technology. We’re also launching our new ‘Future Business’ series with a look at the concept of business agility in reacting to changing customer needs. The role of the chairperson comes under the microscope in our Boardroom section. We also look at how organisations can make themselves whistleblowing ready. And we continue our 12-month CSR campaign with a look at the complex area of the marketplace, which takes in everything from supply chains to customer relations and product quality. Thanks as ever to the IoD members and others who have contributed their time and shared their expertise and insights. We welcome feedback and MONTREAL suggestions to ID@businessandleadership.com.

Grainne Rothery Editor, Irish Director

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BOSTON Editor: Grainne Rothery WASHINGTON D.C. LOS ANGELES Production editor: Karina Corbett NEW YORK HOUSTON Designer: Keith Wealleans WASHINGTON D.C. Client services: Sharon Bolger, LOS ANGELES ph: +353 1 625 1422, email: sbolger@businessandleadership.com HOUSTON

Front cover photo: Aengus McMahon / McMahon Photography

COPENHAGEN

DUBLIN

BOSTON

Irish Director is published by Business & Leadership Ltd Ph: +353 1 625 1400 Email: info@businessandleadership.com Address: Top Floor, Block 43B, Yeats Way, Park West Business Park, Nangor Road, Dublin 12 © Business and Leadership Ltd 2014

EDINBURGH

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turkishairlines.com / 01 525 18 49 /TurkishAirlines Voted Europe's Best Airline at the 2014

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Letter from the editor Welcome to the winter issue of Irish Director. In this issue, we talk to Terence O’Rourke about his long career at KPMG and his more recent activities, including as chairman of Enterprise Ireland. In our View for 2015, we also talk to a number of business leaders about their expectations for Ireland’s economic and business landscape in the coming year. We report on Ireland’s construction sector, which is starting to show signs of optimism after being one of the hardest hit industries during the recession. In our special CSR report, the focus is on community and how engagement in this area by business has evovled in recent years and is expected to develop going forward. Our thanks as always go to the IoD members and others who have shared their time, expertise and insights. We welcome feedback and suggestions to ID@businessandleadership.com. Grainne Rothery Editor, Irish Director

Editor: Grainne Rothery Production editor: Karina Corbett Designer: Keith Wealleans Client services: Sharon Bolger For all advertising and marketing queries, contact Sam Hobbs on ph: +353 1 625 1425 or email: advertising@businessandleadership.com Irish Director is published by Business & Leadership Ltd Ph: +353 1 625 1400 Email: info@businessandleadership.com Address: Office 4, 6 Main St, Dundrum, Dublin 14. © Business and Leadership Ltd 2014

Front cover photo: Angela Halpin Photography ISSN: 1649-3621

www.businessandleadership.com

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Irish Director The Official Magazine Of The Institute of Directors In Ireland

NEWS FROM THE IOD 6 A word from the Institute’s CEO Maura Quinn

UP FRONT News, tips and culture

A VIEW FOR 2015 14 Irish management leaders look at the year ahead DIRECTOR PROFILE Terence O’Rourke

ONE TO WATCH 26 Crowdsourced design and 3D printing give form to Love & Robots’ growth plans NEW FRONTIERS 30 After weathering the recession, Bam’s looking forward to growth

PENSIONS Governance and managing pensions

BOARDROOM The role of the board

FUTURE BUSINESS Integrating mobile into the business strategy

recognising Turkey’s opportunities MARKETING 54 Fifteen drivers for brand success in 2015 SECTOR PROFILE 58 Why the construction industry is confident of a sustained recovery CSR REPORT 65 Corporate social responsibility and community SENIOR APPOINTMENTS 80 Who’s moving where in Irish senior management NETWORKING Highlights from the IoD Christmas Lunch

HIGHLIGHTS 86 Upcoming cultural calendar dates

WEBSITE

IOD MEMBER PROFILE 48 Kevin Rafter, associate professor of political communication, DCU

www.businessandleadership.com for further information

SUBSCRIPTIONS For subscriptions, please contact subs@businessandleadership.com +353 1 625 1422

DOING BUSINESS IN... 50 Irish companies are increasingly Business & Leadership would like to thank the patrons of Irish Director magazine – Merc Partners and Vodafone –for their support

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view from the institute

2,000+ members and counting Throughout 2014 the IoD has been working behind the scenes on behalf of its members and the wider director population in Ireland. We have taken part in a number of consultation processes on governance and board related issues at national and EU level. We have contributed to the debate on improving governance standards in both the not-for-profit sector and on State boards. We have engaged with key public and legislative bodies and the media to raise awareness of the issues impacting directors and boards in Ireland and we have worked both with, and for our members, to improve their effectiveness and to build better boards. Earlier this year we reached a key milestone of 2,000 members and we are set to close 2014 with almost 2,200 members. Membership has grown consistently in recent years and such sustained growth is significant and, in many ways, bucks the trend. This growth is due in no small part to the environment in which we are now operating. There is a heightened and welcome focus on corporate governance which has encouraged many directors and boards to ensure that they are fully aware of and up to date with their responsibilities and ongoing legislative developments in the area. We have seen an overwhelming high demand for director training and an increased appetite for board performance evaluations. 2014 also saw the introduction of the IoD’s personalised director coaching

service, offering one-to-one coaching to existing and prospective directors, and the service has been very well received. The Chartered Director Programme continues to go from strength to strength with five cohorts commencing in 2015, three of which, all beginning in January, are fully booked. In the first half of 2015 we will embark on a series of activity with McCann FitzGerald in relation to the new companies’ legislation. The legislation will have wide reaching implications for directors in Ireland and, together with McCann FitzGerald, we will host a series of events for IoD members, coupled with monthly bulletins on the key elements of the new legislation. We will also be revising both the Directors’ Handbook and the Handbook for Directors of Regulated Financial Services Companies in Ireland, to take account of the new legislation and these should be available by early summer. We are delighted that Grant Thornton will continue to sponsor the IoD Breakfast and Evening Briefing Series in 2015, which will comprise 15 briefings along with an increased number of recorded webcasts, available to members via www.iodireland.ie. IoD members can continue to access a range of resource material as part of their membership, including a complimentary copy of our latest publication Cyber Security for Directors, produced together with Mason Hayes & Curran. The IoD remains committed to building better boards and improving the knowledge and effectiveness of our members through a wide range of support and development initiatives. This year has been a very successful year and we look forward to building on that success in 2015.

Maura Quinn Chief executive, Institute of Directors in Ireland

IoD BREAKFAST AND EVENING BRIEFING SERIES SPONSORED BY 14 Jan Venue: 12 Feb Venue:

BREAKFAST BRIEFING PRESENTED BY MARIAN FINNEGAN, SHERRY FITZGERALD National Concert Hall, Earlsfort Terrace, Dublin 2 BREAKFAST BRIEFING PRESENTED BY CONALL MAC COILLE, DAVY National Concert Hall, Earlsfort Terrace, Dublin 2

For information on upcoming events please contact Sharon Kirwan on 01 411 0010 or visit www.iodireland.ie.

IOD SPRING LUNCH 2015 19 Feb

Venue:

IOD SPRING LUNCH 2015 WITH GUEST SPEAKER, MINSTER FOR HEALTH LEO VARADKAR, KINDLY SPONSORED BY DUBLIN AIRPORT TRAVEL SERVICES Four Seasons Hotel, Ballsbridge, Dublin 4

IOD TRAINING AND OTHER EVENTS 19 Feb

Venue:

2 Mar

Venue:

4 Mar

Venue:

WORKSHOP ON THE ROLE AND RESPONSIBILITIES OF THE BOARD, ITS CHAIR AND DIRECTORS Cork Chamber of Commerce, Fitzgerald House, Summerhill North, Cork ADDING VALUE TO STRATEGY FORMULATION – THE ROLE OF THE DIRECTOR AND THE BOARD Irish Management Institute, Sandyford Rd, Dublin 16 WORKSHOP ON THE ROLE AND RESPONSIBILITIES OF THE BOARD, ITS CHAIR AND DIRECTORS Galway Chamber of Commerce, Commerce House, Merchants Road, Galway

For information on upcoming events please contact Sharon Kirwan on 01 411 0010 or visit www.iodireland.ie.

> NOT YET A MEMBER? To learn about your role and responsibilities as a director and to develop your professional skills, knowledge and expertise, why not join over 2,000 fellow directors who are already members of the IoD in Ireland. Call us today on 01 411 0010 or visit www.iodireland.ie.

Irish Director Winter 2014/2015

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Sharon Daly Partner

Head of Commercial Litigation and Dispute Resolution

The first rule of success Surround yourself with the best Financial Times 2012-2014 Matheson is the only Irish law firm commended by the Financial Times for innovation in corporate law, finance law, dispute resolution and corporate strategy.

The success of any law firm can be measured by the quality of its people and its clients. We have the best of both. Sharon leads the largest commercial litigation and dispute resolution practice in Ireland. The team represents financial institutions and multinational organisations on large-scale domestic and cross-border litigation and dispute resolution.

Irish Tax Firm of the Year 2013 International Tax Review

Matheson. The law firm of choice for international companies and financial institutions doing business in and through Ireland.

Client Choice 2013 International Law Office

Contact Sharon at sharon.daly@matheson.com or your usual contact at Matheson.

Dublin

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London

New York

Palo Alto

www.matheson.com

16/12/2014 13:02

up front Turner Prize installation shot - Duncan Campbell, It for Others 2013 Copyright the artist Courtesy Tate Photography

TURNER PRIZE FOR IRISH FILM ARTIST DUNCAN CAMPBELL Irish film artist Duncan Campbell was recently named winner of the 30th Turner Turner Prize. He collected the £25,000 prize at a ceremony at Tate Britain. Campbell’s winning work It for Others (2013) is his response to the 1953 film by Chris Marker and Alain Resnais Statues Also Die, which looked at how the meaning of African artefacts was changed by displaying them in Western museums. It was made for Scotland’s pavilion at this year’s Venice Biennale, and includes new work by choreographer Michael Clark. The jury awarded the prize to Campbell in recognition of an ambitious and complex film, which rewards repeated viewing. It “admired his exceptional dedication to making a work which speaks about the construction of value and meaning in ways that are topical and compelling”. Born in Dublin in 1972, Campbell lives and works in Glasgow. His recent works include Arbeit (2011) about German economist Hans Tietmeyer, who played a key role in the centralisation of the European financial system; Make It New John (2009), which focuses on John DeLorean, his DMC-12 car and the West Belfast plant where it was produced; and Bernadette (2008), his documentary about Irish republican MP and civil rights activist Bernadette Devlin. Meanwhile, the first major exhibition in Dublin of Campbell’s work continues at the Irish Museum of Modern Art until 29 March.

Dublin Down Seven to 27th in most reputable cities ranking

Dublin has fallen seven places to 27th in City RepTrak 2014’s 100 most reputable cities in the world. Vienna came out as the city with the best reputation in the index, which is based on trust, esteem, admiration and respect, and is produced by The Reputations Agency and Reputation Institute (RI). Dublin’s highest score (74.89 out of 100) was for the attribute ‘it is a beautiful city’. The city’s lowest score (60.16 out of 100) was for the attribute ‘is run by wellrespected leaders’. “The good reputation of a city strongly correlates with an increase in the support shown towards a city, such as visiting the city, living or working in the city or deciding to invest in the city,” said Niamh Boyle, managing director, The Reputations Agency. “We need to understand the perceptions of Dublin as reported upon in this study, to identify our competitive strengths and points of difference and then develop the city’s unique brand and reputation strategy.”

Carol Bolger, board member Health &Safety Authority and Coombe Women & Infant’s University Hospital

THREE MORE JOIN CHARTERED DIRECTOR RANKS Congratulations to the three new chartered directors who successfully completed the Institute of Directors in Ireland (IoD) chartered director programme recently. They are Carol Bolger, board member, Health & Safety Authority and Coombe Women & Infant’s University Hospital; Padraig McLoughlin, CEO, McLoughlinsRS; and Ger Penny, non-executive director, Sisk Group. Over 500 participants have undertaken the chartered director programme to date, which is now in its sixth year in Ireland. Having obtained a certificate and diploma in company direction, each candidate went on to become a fully accredited chartered director. For more information on the chartered director programme and the steps to becoming a chartered director, contact IoD training co-ordinator Sheila Byrne on 01 411 0010 or sbyrne@iodireland.ie.

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Change leaders: Mike Feerick and Alison

Amid the rise of the celebrity tech entrepreneur, founder and CEO Mike Feerick explains how the world’s first Mooc (massive open online course) platform Alison isn’t wavering from its social mission. A four million strong, global online learning community, Alison has over 600 free courses to help anyone develop certified workplace skills. How would you describe the problem that Alison is working to solve? For the last couple of hundred years, people have been gaining greater access to education and training opportunity, but have been doing so at significant cost. With today’s technology, we no longer need a big ticket price on this access. Education and skills training can be provided for free online. Our mission is to make it happen. Organisations of all kinds and sizes are now encouraging their employees to learn new skills and improve their productivity via Alison. We did a survey of our learners in February with 40,000 responses. Fourteen percent of our course graduates stated that they had either got a new job, a promotion or a college placement from learning for free on Alison. If you extrapolate that up worldwide, and assuming it’s representative of every graduate on Alison, that’s 50 to 60,000 people around the world who were able to improve their lot at no cost by educating themselves. And we’re only starting. Our market is the bottom of the pyramid. There are 7.2 billion people in the world and most people need basic workplacefocused certifications, not courses on astrophysics and artificial intelligence that other Moocs provide to the best educated 50 to 100 million people worldwide. How is your business model different from that of other Moocs? What’s different about us compared to Coursera or EdX or any of the competition out there is that all learning on Alison is self-paced. You don’t need the professor; you can go on and learn whenever you want, any time. Even if it’s lunchtime for 20 minutes, or after you put the kids to bed … it’s really handy because the others are not self-paced and it is hard to be online for a class at exactly six o’clock for 10 weeks in a row, even if it’s at home. We had three or four tough years of just believing in a vision that if you can get enough people online learning for free, even though you only get a few cents from each of them, you can have a very successful model. We’re over four million learners, and now that we have scale Alison is self-financing. This is an extract from an article in the Change Leaders series, a collaboration between Ashoka Ireland and Businessandleadership.com – www.businessandleadership. com/sustainability/item/48463.

Brand champion: Owner and founder of Skelligs Chocolate and Cocoa

Colm Healy

How important is a marketing strategy now to a brand? If you look at the definition – a marketing strategy is the goal of increasing sales and achieving a sustainable competitive advantage – I think you will see it is very much the life blood of any business these days. In an increasingly crowded marketplace, a proper marketing strategy helps companies to maintain relevance. At Skelligs Chocolate, we have our own special issue with the fact we produce a product nobody actually needs, but thankfully most enjoy. Companies need to understand the difference between ‘sales’ and ‘marketing’ and the value of a distinct marketing function. A good marketing strategy helps tell the story of your business and if done properly engages your customers and helps drive sales. How has marketing/advertising changed in general over the last 10 years or so? The biggest change in marketing in my opinion is the measurability of success and the ability to really target your market with the vast amounts of data available. John Wanamaker’s ‘Half the money I spend on advertising is wasted; the trouble is I don’t know which half’ is no longer as relevant with the analytics available and the ability to search out any niche. Campaigns like ‘WestJet Christmas Miracle: real-time giving’, where the airline was able to have personal gifts for their passengers at the end of a flight would not have been possible 10 plus years ago. The internet has levelled the playing field, where once only large businesses could afford to advertise effectively, now SMEs can run effective low cost, but high value campaigns. The last decade has empowered the consumer but also given them information overload. Companies need to innovate to avoid becoming ‘me too’ operations that will be overlooked by very busy consumers. The customer is now a ‘promiscuous’ shopper and we all need to create the correct relationship with them to have any chance of developing a long-term relationship. This is an extract from a Q&A article that first appeared on Business & Leadership – www.businessandleadership.com/marketing/item/48294.

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DCC TOP AGAIN FOR PUBLISHED ACCOUNTS DCC was recently named overall winner of 2014 Published Accounts Awards, as well as winning the Large Quoted Entities category. This is the third year in a row that DCC has received both accolades. The Published Accounts Awards are organised by the Chartered Accountants Ireland Leinster Society and sponsored by the Irish Stock Exchange. Twenty-seven public and private companies, including not-forprofit organisations and charities, competed as finalists across seven award categories. ESB won two awards, including its fourth consecutive win in the Statutory Unquoted Entities category, as well as the Social Responsibility Reporting Award. Concern, meanwhile, won its fifth consecutive title in the Charities and Not-For-Profit category. The organisation also won the Branding, Communication & Marketing Award category for the presentation and design of its financial accounts reports. Greencore and Total Produce also won awards.

Initiative launched to map Dublin’s tech ecosystem

Dublin commissioner for start-ups Niamh Bushnell has launched the Dublin Data Initiative, which aims to map the capital’s technology ecosystem. It will be undertaken in conjunction with Startup Genome, a global non-profit that maps start-up ecosystems around the world, and run in partnership with PCH. From January, the Dublin Data Initiative will collect and map data on an ongoing basis from start-ups and stakeholder organisations across the city providing key insights into, for example, the number of start-ups in Dublin, their operations, areas of focus and stage of development. “To continue to build on Dublin’s character and reputation as a global tech hub we need great data about our companies, their strengths and challenges, and how we, as an ecosystem, can better support them at every step along the journey,” said Bushnell. C

NEW IRISH GUIDE

TO CORPORATE GOVERNANCE A new guide to corporate governance promises to demystify the subject and set out the basic standards that should apply to state organisations, banks, businesses, charities and local sports clubs. “Good governance is the cornerstone of effective organisations,” said David W Duffy (FCA), the author of A Practical Guide to Corporate Governance. “Governance failures have also caused the demise of organisations and destroy reputations. Reports on the banking crisis in Ireland identified weak governance as one of the key ‘home-made factors’ that contributed to the crisis. “These failures in governance – failing to implement internal procedures fully, the assumption that the banks had and would adhere to their own internal governance particularly around concentration of risk in commercial property lending, and independence of action and effective oversight of regulators – were at the heart of crisis.” He said, however, that governance failures have not just been limited to banks. “Many other organisations including representative bodies, non-profit organisations and State agencies, in a range of sectors, have been damaged by failures or the complete absence of a governance culture and structures.” The guide is published by Chartered Accountants Ireland and is priced at €35.

CMY

Niamh Bushnell, Dublin commissioner for start-ups

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09:33

ARRIVE BETTER CONNECTED.

up front

Time is precious, so we promise to take up as little of yours as possible. On average, our passengers can be in a taxi or boarding a DLR train within 15 minutes of landing. On departure, passengers require only 20 minutes from terminal entrance to departure lounge. And because we’re the only London airport that’s actually in London, just 25 minutes from Westminster, you’re always closer to where you need to be. Quicker, more punctual and actually in London.

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UP TO 18 DAILY FLIGHTS FROM DUBLIN TO LONDON CITY AIRPORT Winter 2014/2015 Irish Director

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Guidelines for State board appointments published The Government has published new guidelines to helping Departments implement the new arrangements for appointments to State boards. All State board appointments must now be advertised openly on www.stateboards.ie, which is operated by the Public Appointments Service. “These guidelines set out clearly how the new appointments process for State boards will work in practice,” said Minister for Public Expenditure and Reform, Brendan Howlin. “They will assist all Departments to engage effectively with the Public Appointments Service to draw up clear specifications of board roles. These can then be openly advertised so that the expressions of interest can be sought from the widest possible pool. “The Public Appointments Service will then assemble a shortlist of suitable candidates for the Minister to select from. “This new process will improve corporate governance on our State boards, widen the pool from which members of State boards are drawn, and ensure that the process around appointments to State Boards is transparent. I would urge anyone interested in serving on a State Board to visit stateboards.ie and express an interest.” A list of available vacancies, along with a full list of State boards, with members, is available on www.stateboards.ie.

30% CLUB SEEKING SUPPORT FOR GREATER GENDER BALANCE Irish CEOs and chairs are being urged to join the 30% Club, which aims to reach a 30pc female gender balance on Irish boards and executive management level by 2020 as well as improved gender balance at all levels. The 30% Club – a group of international chairmen and CEOs who are committed to better gender balance at all levels of their organisations through voluntary actions – has been established in Ireland with the support of founding chairman Nicky Hartery, CRH; Vivienne Jupp, CIE; Michael Buckley, formerly DCC; Lochlann Quinn, ESB, Kieran McGowan, Business in the Community and Gary Kennedy, Greencore. It is being led in Ireland by Marie O’Connor, who is a partner at PwC. Research carried out by the 30% Club Ireland shows that female participation on the boards of 50 listed companies on the Irish Stock Exchange is currently at 10pc, while 48pc of these companies have no female directors at all. “Research indicates that having at least 30pc senior female representatives within an organisation significantly influences both a company’s culture and decision making,” said O’Connor. “This leads to enhanced performance, innovation and talent retention which creates a positive impact on businesses’ corporate results and ultimately increases shareholder value. We are focused on influencing voluntary change from senior leaders as opposed to supporting mandatory quotas, which may not lead to sustainable change.” CEOs and chairs from over 50 Irish companies have already supported the 30% Club.

A st

KERRY FOOTBALLER WINS SFI 2014 RESEARCH IMAGE OF THE YEAR COMPETITION Anthony Maher, a member of Kerry’s Senior Football All Ireland winning team, has won Science Foundation Ireland’s 2014 Research Image of the Year competition for a depiction of his research at the Synthesis and Solid State Pharmaceutical Centre (SSPC) at University of Limerick (pictured right). The SFI Research Image competition celebrates images captured by SFI-funded researchers during the course of their research. Maher, a Pfizer employee, was a researcher in the SSPC from 2008 to 2012 and carried out his PhD work in the area of polymorphism in pharmaceutical compounds. “Dr Maher’s image, ‘Starship Enterprise’, captures the wonder and curiousity that science is all about,” said Minister for Skills, Research and Innovation Damien English. “It is an instantly accessible picture that grabs the attention of the viewer, regardless of whether they are a world-class researcher or a child in a classroom. His image is such an effective way of showing the cutting edge research that takes place every day at SSPC and the other SFI research centres across the country.”

At Ma an you Re res

SU AIB tim ser Ma an iss

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Patrick Farrell, Head of Private Banking

DELIVERING EXCEPTIONAL STANDARDS IN BANKING. AIB Private Banking offers a dedicated banking service for professionals. By delivering a superior standard of banking, you can focus on your career, your business, your family and your interests. AIB Private Banking is an exceptional new banking experience, offering exclusive, highly-personalised banking to professionals, business people and other individuals who require a more proactive, responsive banking relationship from AIB.

Our team at AIB Private Banking is dedicated to follow-through on all commitments to you, doing the small tasks exceptionally well. You can also benefit from the most advanced digital banking services in Ireland.

At AIB Private Banking, we offer you direct and confidential access to a Relationship Manager. They will help you to efficiently manage your daily banking transactions and best manage your finances to achieve your goals, freeing up your time for your career, your family, as well as your interests and passions. Each dedicated Relationship Manager is supported by an expert banking team, to ensure a responsive service where you take priority.

A RETURN TO THE TRADITIONAL BANKING MODEL Patrick Farrell, AIB’s new Head of Private Banking, who is responsible for rolling out this new service, is clear in his motivations and aspirations for AIB Private Banking. “What we are aiming for is a return to the up-front values of trust and personal service that were traditional in the banking relationship. Our highly valued clients are often those who have the least time to look after their financial affairs.

WE MAKE BANKING EASY, SUPPORTING YOUR BIG DECISIONS, HELPING YOU TO PLAN FOR THE FUTURE. SUPERIOR STANDARDS & SERVICE LEVELS AIB Private Banking is committed to making daily banking easier and more time-efficient for our highly valued clients, by introducing new standards and service levels. As an AIB Private Banking client you can contact your Relationship Manager for a prompt response on a range of financial issues, from ordering a new credit card or currency to transferring funds, or more complex financial issues you need information on, such as your mortgage or your pension.

Your Relationship Manager can manage many banking tasks by phone, email or fax ensuring a prompt, efficient service. This greatly reduces the amount of time that you need to give to your banking commitments, giving you the peace of mind that comes with confidential and trusted expertise.

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By delivering the highest level of day-to-day banking and the most advanced digital banking service, we can provide the premier banking experience for our clients. Our goal is to help them to meet their life objectives, giving them the support and advice they need to plan their financial futures. We place the client’s long-term interests at the heart of the banking relationship, and are proactive in delivering solutions that will serve their needs and the needs of their family members through all life stages.” We would be delighted to discuss how our new AIB Private Banking services can benefit you. Typically our clients have an annual salary or income which exceeds €250,000. If this applies to you, talk to us about a better banking service which is tailored for you. To find out more about AIB Private Banking, contact Patrick Farrell: Telephone 01-6417634 or email patrick.a.farrell@aib.ie Allied Irish Banks, p.l.c. is regulated by the Central Bank of Ireland.

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a view for 2015

A VIEW FOR

2015

Business leaders share their thoughts on the outlook for the coming year Irish Director Winter 2014/2015

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Continued growth in export markets During the closing months of 2014, barely a week went by without a significant new jobs announcement being made by an Irish company. These jobs are being created right across the board, from young, ambitious innovative start-ups to developed companies with strong brands and Irish MNCs that already have a well established foothold in international markets. Irish companies are really on the move and the one thing they all have in common is that this growth and job creation is built on the back of very strong growth in key export markets. Internationalisation is critical for business growth and economic success. Currently 80pc of everything we make in this country is sold into export markets. The performance of Enterprise Ireland backed companies in 2013 saw these companies achieve their highest level ever of exports from Ireland, reaching €17.1bn. This very strong export performance is forecasted to continue into 2015. There is a palpable sense of energy and optimism in Irish companies. Business sentiment is rising and the PMI Index for Ireland for October showed growth continuing in the manufacturing and the service sectors, with both increasing employment. As we look forward to 2015, we can be very confident that exports will continue to grow, and so too will the follow-on job creation. The indicators certainly seem to be telling us that the growth trajectory is very much upwards, and that there has never been a better time to go global and expand business. The obvious question is which markets offer the best opportunity for Irish companies? In terms of market focus, Enterprise Ireland’s network of 31 international offices around the globe very much has its finger on the pulse regarding which markets offer the best fit and greatest potential for Irish exporters. The UK, mainland Europe and the US continue to be the traditional destinations for Irish products and services – these are markets where we can undoubtedly grow stronger. The real push however, must come from chasing bigger opportunities, further afield, increasing the focus on the Bric economies and wider high growth markets. Companies that are serious about pursuing international growth strategies must be serious about selling into high growth markets. Enterprise Ireland has put increased resources in these areas specifically to support Irish companies in this drive - in the high growth markets of China, United Arab Emirates, Qatar, South Africa, Nigeria, Turkey, Singapore, South Korea, Canada and Western Australia. Irish companies are exporting more than ever before, but the imperative now is to grow our export base in these new markets. Our over-arching focus in Enterprise Ireland is on internationalisation and supporting export led growth and job creation. Doors are definitely open for Ireland in international markets. Across all sectors, and in all markets, there are Irish companies doing the business, winning new contracts, increasing export market share, creating jobs. Looking forward to the coming year, we can confidently expect continued growth across all fronts.

JULIE SINNAMON is CEO of Enterprise Ireland.

‘The indicators certainly seem to be telling us that the growth trajectory is very much upwards, and that there has never been a better time to go global and expand business’

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Important recovery milestone to be reached, but work needed to guard against risks

DANNY MCCOY is CEO of Ibec.

The Irish economy is recovering much faster than many expected. When the EU Commission recently forecast that Ireland would be the strongest growing European economy in 2014, and for the next two years, many international observers were suitably impressed. To those more familiar with the underlying strengths of the Irish enterprise model, and Ireland’s economic journey over recent

years, the forecast was perhaps less of a surprise. Notwithstanding the deep crisis, Ireland and Irish business responded quickly, and we are now seeing the benefits. Austerity can now be consigned to history and Ibec is forecasting remarkable GDP growth of about 6pc this year. Already the prospect of further easing the tax burden on workers in next year’s budget is on the agenda. Ireland is on the way back. Ibec expects growth of 4.5pc next year; moderating to a rate of 3-4pc over the medium term. Significantly, we expect the economy will grow past its 2007 peak during 2015; another important recovery milestone. On the labour market front, strong employment growth means the number at work will return to early 2009 levels by the end of 2015; however this is still a full 185,000 below its mid-2007 peak. Although this is partly due to demographic factors, it still underlines the long road Ireland’s labour market must still travel. Despite progress, for many businesses pressures remain. Many companies continue to face difficult trading conditions and are constrained by legacy cost factors. This year’s Budget, by reducing tax and increasing investment, will support competitiveness and growth in the months ahead. But there is work to do. Encouraging more public and private investment is a priority, along with maintaining the emerging consumer recovery. Additionally, it is important that a new spatial strategy is put in place to plan for the long term recovery outside the main urban hubs. It’s important that all parts of the county, urban and rural, and in every region, experience the recovery. Yes, we can afford to be optimistic, but we also need to be conscious of the risks that remain. The eurozone economy remains incredibly fragile, and this requires further decisive intervention on the part of European policy makers. A renewed recession there would inevitably be a setback for Ireland. To guard against these risks, some of which are beyond our own control, we must continue to push for reforms to create a more competitive business environment; we must do more to grow our domestic economy and, crucially, create more jobs.

‘Encouraging more public and private investment is a priority, along with maintaining the emerging consumer recovery’

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A changing governance landscape Corporate governance was once again in the headlines in 2014, in some instances, for all the wrong reasons.The controversies among some organisations in the not-for-profit sector earlier this year and the continuing saga relating to appointments to State boards, underlines the importance of good governance across our society. The long awaited establishment of the Charities Regulatory Authority earlier this year was welcomed by the sector. The recently announced revisions to the appointment process to State boards with guidelines introduced to increase transparency and a dedicated portal, www.stateboards.ie, to create a level playing field by processing all applications, is most welcome. The appointment process has been shrouded in controversy for many years and while the new system is a work in progress, it is hoped that it will help to build confidence and transparency as well as ensuring the best people with the most relevant skills and expertise are appointed. Next year will see the commencement of the new companies legislation, with the Companies Bill 2012 expected to be signed into law shortly. The legislation will introduce sweeping changes and will impact every company and every director of an Irish company. It will reform, consolidate and amend the company law statutes applicable for all Irish companies and will have a number of implications as to how companies and directors operate. The legislation was due to be enacted by the end of 2014, however it will not come into force until June 2015 and there will be a significant implementation period in place for existing companies to take any necessary action. The financial services sector will also face further governance changes in 2015. The revised Corporate Governance Code for Credit

Institutions and Insurance Undertakings will take effect from 1 January 2015 with a greater emphasis on risk at executive and board level. The Central Bank has also just recently closed a consultation process in respect of the funds industry which may lead to significant changes in the governance structures and oversight of these companies. Significant steps have been taken across a wide range of sectors to strengthen the governance structures of companies operating in Ireland and the onus is on both boards and directors to keep abreast of ongoing legislative developments. The general public is more demanding than ever before of the need for high standards of corporate governance in Ireland and this demand is unlikely to reduce; nor should it. As our economy returns to growth, it is imperative that good governance forms part of the fabric of all businesses throughout Ireland.

â&#x20AC;&#x2DC;The financial services sector will also face further governance changes in 2015â&#x20AC;&#x2122;

MAURA QUINN is chief executive of the Institute of Directors in Ireland.

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Property recovery to gather further momentum There is no reason to believe the recovery in values experienced in 2014 in both residential and commercial property will not continue in 2015, and on more of a national scale as opposed to only in the major cities. On the commercial side, the retail sector will continue to be of particular interest to investors given the projected recovery and the subsequent improvement in consumer confidence which has helped to set a floor on pricing from which asset values can grow. The office market in Dublin, and its suburbs, as well as Cork will also remain attractive even though yields have compressed already to reflect the recovery. The existing supply/demand imbalance in this sector should rebalance from 2016 onward but the continued lack of financing for speculative development will limit the short term ability of a surge in supply to slow down the growth in rents. The nature of the buyers for the larger deal sizes will continue to be driven by the large Irish pension funds as well as international investors, some of whom may invest directly with local partners or indirectly through a Reit structure. On smaller deals, the re-emergence of the private Irish investor, after several years of negative sentiment, will continue into 2015 as confidence grows and the returns on Irish real estate will be seen as attractive compared to other forms of investment such as bonds or shares. One of the key developments of 2014 was the increased deleveraging of distressed bank assets into the market and an increased volume of sales Bana. Next year will be no different and whilst this yearâ&#x20AC;&#x2122;s levels may prove to be the peak in terms of transactions, there will be no shortage of real estate disposals as the transfer of assets from the financial institutions to new property owners nears completion. In the residential market the rapid pace of recovery is being driven by an acute shortage of supply, particularly in the Dublin area, with annual increases of over 20pc. Having said that, growth is starting to return across the country, albeit at more modest levels. Concerns about the pace of increase have prompted the Central Bank to consider measures on new housing requiring a buyer to have a 20pc deposit to get a mortgage. If this occurs in 2015 it will likely limit the pace of price growth, but is unlikely to stop further appreciation in the sector given the positive fundamentals in the economy. The recovery in both residential and commercial property is a positive for the Irish construction sector. We are starting to see new projects come on stream after several years of very limited new building. This will help provide jobs and also ensure increased supply in the key bottleneck areas of Dublin CBD office space and Greater Dublin residential. It is amazing to think that only three years ago the Irish property market was viewed as untouchable. Yet as we come to the end of a record year in 2014 we are starting to dig out our development appraisal skills again, and the recovery will gather further momentum in 2015.

JONATHAN HILLYER is managing director of HWBC.

â&#x20AC;&#x2DC;In the residential market the rapid pace of recovery is being driven by an acute shortage of supply, particularly in the Dublin area, with annual increases of over 20pcâ&#x20AC;&#x2122;

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Tax policy to be key item on the business and political agenda Ireland’s use of tax policy as a driver of economic growth is more important than ever. The issue will be a key business and political agenda item in the year ahead. In 2015 we need to apply the same rigour and commitment to tax policies for entrepreneurship as we do for global businesses. All of this is in the context of a bigger political and economic picture. So far, the current Government has done well in managing the international pressures exerted on Ireland’s corporation tax regime. Ending the ‘double Irish’ was a smart move, according to the director of the OECD’s centre for tax policy and administration Pascal Saint Amans. He was speaking at a recent KPMG supported Institute of International and European Affairs conference in Dublin. He also said Ireland has been an extremely constructive participant in the organisation’s base erosion and profit shifting (BEPS) project which is seeking to draft new rules for global taxation. Such sentiment shows that we are capable of addressing tax policy challenges when we need to. Business leaders, entrepreneurs and innovators know just how much work remains to be done on the domestic side of the tax agenda. The most glaring example of our tax system discriminating against domestic enterprise is the way in which it discriminates against the self-employed entrepreneur. The additional 3pc USC that applies makes no sense whatsoever in a country that is proenterprise. This is all the more ill advised as we know that labour and capital are increasingly mobile. Common sense also highlights that disproportionate taxation of earned income creates disincentives to work and barriers to a better functioning labour market. In human terms we need to make sure we don’t lose homegrown potential to brighter lights elsewhere. We also need to attract overseas talent and their resources. With a high rate of CGT compared with our nearest neighbour and the income tax barriers we have work to do to ensure a better tax welcome for mobile talent. Business leaders recognise the political context in which decisions are taken. However, we cannot afford to inhibit Ireland’s enterprise potential. Doing nothing comes at too high a cost in terms of potential innovation, jobs and economic activity that will likely happen elsewhere without change.

SHAUN MURPHY is managing partner of KPMG in Ireland.

‘The most glaring example of our tax system discriminating against domestic enterprise is the way in which it discriminates against the self-employed entrepreneur’ Winter 2014/2015 Irish Director

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Focused on growth for the future With Ireland on track to be the fastest growing economy in the eurozone in 2015, businesses of all sizes from start-ups, SMEs and multinationals, are firmly focused on growth for the future. There is activity across a wide range of sectors and in 2014 Ulster Bank will have lent €1.2bn to businesses. Demand for finance continues to be high from companies looking to export overseas. Businesses are bringing with them a greater understanding of what it takes to export, from the research they undertake before investing, to the way they manage their risk of exposure to another country’s economy. Notably for 2015, both the UK and the US economies, our main customers, are expected to continue strongly, however we will need to keep an eye on the fluctuations in the wider eurozone area. And as a New Zealander, I’d also like to see further growth in the number of companies looking to the opportunities in Asia, which currently accounts for under 5pc of our exports but is home to two of the biggest economies in the world in China and India. Sectors we see particular growth in include the energy industry and our highly regarded tech industry, both of which encompass domestic growth and overseas opportunities. More and more companies are requiring global banking support which we offer through the RBS network and as the only Irish member of the IBOS international banking network, Ulster Bank is also advising a growing number of businesses locating here for the first time. This is the fourth consecutive year of Ireland outperforming its fiscal target. This sustained recovery has resulted in businesses

entering a new phase of growth and a steady decline in unemployment with companies hiring both in and outside Dublin. As a consequence, spending and consumer confidence is growing, albeit at a measured pace. As this continues in to 2015, I’d expect to see more start-ups emerging and SMEs looking to hire staff, considering larger premises and potentially investing in equipment and better technology services. Crucially for the domestic economy, Ireland’s highly regarded agri and food and drink businesses are more than back on their feet. We’ve seen huge demand in this area, which we’ve responded to by introducing specialist propositions and by training 28 of our staff as the only accredited agri-finance experts in the country. The outlook for 2015 is positive and the banking sector will be embracing the opportunity this brings.

‘The outlook for 2015 is positive and the banking sector will be embracing the opportunity this brings’

JIM BROWN is CEO of Ulster Bank in Ireland.

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War for talent to become more competitive 2014 was a very positive year, with business confidence up and the indictors very positive for 2015. Staffing levels across all sectors in Ireland are expected to grow by 10–15pc over the coming year (Manpower Employment Survey 2014). At a global level the executive search market is expected to grow further in 2015. In 2014, we saw an increase of 4pc globally with forecasts of between 8–10pc expected in 2015. The biggest growth in 2014 was seen in industrial and life sciences, with the consumer food sector following closely behind. Closer to home we have seen three sectors most prominent in terms of growth: consumer/food (FMCG), technology (ecommerce and finance and health tech) and professional services. While other sectors have remained steady – ie pharma – we have yet to see an increase in the retail sectors or medium sized indigenous sector. From an employer perspective we are seeing a re-emergence of the war for talent. There is real competition now for proven top talent and this combined with a slew of a new roles being created or developed for which there is a lack of experience and capability in the Irish marketplace has seen the war for talent emerge. For example, in the digital and big data arena we are seeing a demand from our clients for candidates with proven ‘big company’ sophisticated experience. Some of the hot roles in this area include head of digital, head of innovation and head of people analytics. In addition to the re-emergence of the war for talent, we are seeing real focus back on competitive salaries and benefits packages. Due to competition, employers now need to consider the totality of their remuneration package with a reemphasis on bonus and other benefits.

We expect 2015 to continue on an upward curve. As our clients have come through their restructuring phase and are now very much into growth we see their demand for talent growing. While traditional roles such as CEO, CFO and C-suite functions are going to be needed we see a greater emphasis being put on marketing, commercial operations, corporate development/strategy and customer insight roles in the coming year. In summary, we expect more of our clients to continue to grow and also for the war for talent to continue and become more competitive. Our advice for employers is to plan for future growth now and start your recruitment processes as early as possible. For those who are seeking new roles, make sure you continue to build your experience and differentiate yourself in the market.

‘As our clients have come through their restructuring phase and are now very much into growth we see their demand for talent growing’

MARK O’DONNELL is partner at Amrop Strategis. Winter 2014/2015 Irish Director

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director profile

Enterprising

EDGE

After 38 years at KPMG, Terence O’Rourke has taken on a range of nonexecutive roles, including chair of Enterprise Ireland. Grainne Rothery reports

omething of a lifer at KPMG, where he spent 38 years including six as managing partner before his retirement in 2013, Terence O’Rourke is now forging out a successful non-executive career. Despite his long tenure at KPMG – Stokes Kennedy Crowley (SKC) until 1988 – accountancy didn’t start out as the preferred career path. Graduating from UCD in 1975 with an arts degree in history and economics, job options were limited, he says. Accountancy was suggested to him as a route into something else. He joined SKC in the aftermath of a significant merger between two traditional accountancy firms. “They wanted to do things. There was lots of buzz in the place at the time. I said I’d just get qualified and then I’d see what I wanted to do after that.” After qualifying, he decided to return to the States where he’d worked as a student. He spent two years at SKC associate firm Peat Marwick in Boston. “It was a great city to be Irish in and it was great to be somewhere and having to prove yourself all over again – people didn’t know what college you came from; what school you came from; who you were – you just had to get vindicated by your work and your contribution.” Back in SKC in Dublin in 1981, he rose through the ranks, spending four years as audit manager before being made audit director in 1985 and partner in 1988. “In the early 1980s, I thought, let’s see how far I can get, and that’s when I first woke up to the fact that there may be a career here. I liked what I was doing, liked the people, liked the clients

and seemed to be doing pretty well. There wasn’t anything else I wanted to do more. I did get a few offers and I saw some of my friends leaving SKC and doing lots of different things, but none of that particularly attracted me.” Despite being essentially in the same firm, it was a very varied career, he says. “I don’t think I ever stayed in the same team or group of people or clients for more than six years at a time, so I was always moving around.” Roles included being risk management partner and head of the department of professional practice; head of technology, media and telecoms, which involved servicing clients like ESB, National Lottery and An Post; and head of audit. His final role was as managing partner from January 2007 until his retirement from KPMG in April 2013. He describes his biggest success in business to date as taking KPMG through the end of the Celtic tiger, through the recession and back out again. “When we had to adjust the firm and right size it we didn’t know what the bottom was going to be. We had to reduce the head count but we didn’t know by how much and how far. It would have been terrible if we had to do that twice. That was the biggest challenge. And we got it right. We did it quite fast and we implemented it – in my view – very well to take out 20pc of the people and reduce pay by 10pc.” Another highlight was the appointment of Kieran Wallace as liquidator of IBRC in February 2013. “It was recognition that the firm had the capability and the trust of the Government to do that incredibly important job – I was pretty proud of that one as well.”

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director profile

‘You’re not entitled to anything – you’ve got to earn everything you get. The only way to do that is to put lots of time and energy into things’

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director profile

O’Rourke had a certain amount of non-executive experience before his retirement, having been involved with the Institute of Chartered Accountants of Ireland, where he was president for a year, as well being on the advisory board Ireland of the Women’s Executive Network from 2008. “As I was coming up to the end of my term in KPMG I was thinking I should be doing all sorts of planning and working out what sort of non-execs I wanted to get. I sought advice from people and they basically said, if you say I want this directorship or that directorship, you could be waiting 10 years. The best thing is to do your job in KPMG – part of that is in the marketplace and being out and about.” He describes is current situation as “nicely busy”. These days his roles includes chair of Enterprise Ireland; non-executive director and chair of the audit committee of Hibernia Reit; non-executive director of The Irish Times and chair of its audit committee; chairman of Enactus; president of the advisory board of Kinsale Capital; board member of the Children’s Fund for Health, the fundraising office of Temple Street Children’s Hospital; governing authority member of DCU; council member of the IMI; and a member of the governing council of the Dublin Theatre Festival. “When people ask what I do now, the first thing I say is chair of Enterprise Ireland,” he says. “It’s a fantastic company and there are great people in there. I knew they were doing good work, but I’ve just been really impressed in my 14 months there with the quality of what they’re doing and the contribution of the staff. To describe what Enterprise Ireland does, you’d probably need a page because it does all these different things – the overseas offices, the trade missions, management training, grants to Irish based companies, local enterprise offices, research and links with third level colleges. In terms of helping Irish enterprises do well, scale, expand, export and be successful, there are lots of different programmes within Enterprise Ireland. It does great work, but I’m not sure we tell that story well enough.” Another area he believes should be highlighted is the agency’s venture capital activities. “Enterprise Ireland is the largest capital outlet for small companies in Europe. Because we do everything else, we don’t look at ourselves as a venture capital company. One of the things we’re looking at is telling that story better, because it’s pretty successful in terms of the Irish taxpayers’ money going into things.” His first year in the role was about getting a new CEO in place and focusing on strategy. “I think probably the most important thing a chair has to do is make sure they’ve got the right CEO and we’ve been blessed with Julie [Sinnamon] coming through the process and being fantastic. She’s hugely supported in the organisation and the clients are very positive about her. And she knows her way around the ecosystem in terms of the Government connections. That was something I had to learn.” He notes Enterprise Ireland’s recent announcement that it is cutting 55 jobs and has permission to take on 21 new people. “We’re dealing with clients with new technologies and yet there’s hardly a person in Enterprise Ireland under the age of 30. We need a freshening up of the skills and experience of people.”

Leadership style His leadership style has remained broadly similar, despite the transition from executive to non-executive. “You need to set goals and to make sure those goals are stretchy enough so they’re not completely unreachable and also not too soft. And then you need to measure them. The people agenda is hugely important. The people in Enterprise Ireland have been so resilient – there have been recruitment freezes, people leaving and no promotions for three or four years now. Anything I can do to help and encourage the people there to try to inspire and support and thank and make sure people are appreciated is an important thing. People work very hard and not everyone says well done or thank you all the time. That’s what I try to do. “It’s obviously important to stay out of the management side and to know where that is,” he adds. Another area of difference is the confidential sounding board role with the CEO. “I didn’t realise it was going to be such an important thing.” Elsewhere, O’Rourke’s involvement with Enactus – a not-forprofit that helps university students develop social enterprise projects – has continued from his KPMG days. Worldwide, the firm sponsors Enactus in around 30 of the 40 countries in which it operates. “When I became managing partner, one of the things I did was start a formal CSR programme so we looked at getting space in our budget for Enactus in Ireland. In 2011, we were able to do this and started the programme here and got other sponsors on board. “Students have great ideas but they need some discipline and boundaries and project management skills. With Enactus they go to a number of training sessions and then there’s an advisory board where the sponsors have people from their businesses act as business advisor to the students as they do their projects. And that works very well. The students get discipline; the business advisors get hands on experience of helping students and an idea of what’s happening in the universities which feeds back into their own businesses. And the social enterprise projects will hopefully do some good in the world.” Corporate responsibility was an area O’Rourke actively tried to champion and lead within KPMG, he says. “I do think that as a business or a corporate you are benefiting so much from the world around you and the corporate itself should be giving back something that is for no immediate gain, but just a good thing to do. There are definite benefits: they’re not maybe bottom line benefits immediately, but there are engagement benefits, there’s the clients’ appreciation of it as well, and there’s a marketplace impact. So there are lots of business reasons to do it as well as the altruistic reasons. And I think that’s increasingly expected.” He’s also very interested in education and sits on the governing board of DCU and on the board of the IMI. “Obviously education and management education are critically important in this country. If you look at this country in 20 or 30 or 40 years’ time, what will make the difference is how well we’re educating our students, what skills they have and how well they are equipped to make their way in the world.” Policy is another area of interest and he’s on the board of the think

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director profile

‘My philosophy would be to spend some time in these places and then get out when I’ve contributed what I can contribute’

tank, Institute of International European Affairs. “It’s an amazing meeting place where people from corporates and the public sector and academics can come together and debate issues. People are not coming with agendas so you can really have a free and frank discussion about different policy options in Ireland and obviously there are huge things at the moment, like the euro and the EU and the UK and what they’re doing. My job is to try to make sure the corporates are involved and understand the importance of the research without the immediate commercial benefits. If we screw up on our EU policy or working out the implications of what the UK may or may not do, there’ll be huge implications for business in Ireland. So it’s a very important place for the research and policy development to be done.”

He recently stepped down from the Institute of Chartered Accountants in Ireland and WXN. “My philosophy would be to spend some time in these places and then get out when I’ve contributed what I can contribute and they all need fresh blood. It tends to be six years. It’s long enough to understand things fully, to try to make a difference; any longer than that and you’re probably getting stale.” A more general philosophy is that you get back what you put in. “You’re not entitled to anything – you’ve got to earn everything you get. The only way to do that is to put lots of time and energy into things. And try to enjoy it. and I’ve been lucky enough that all the positions I’ve been in I’ve enjoyed and I’ve looked forward to going into work most days.”

Winter 2014/2015 Irish Director

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one to watch

Recently named winner of the 2014 ESB Spark of Genius Award, Dublinbased start-up Love & Robots is going from strength to strength. Sorcha Corcoran reports

Design

FOR LIFE W

hen Love & Robots, previously known as FabAllThings, won the Female Propeller for High Fliers Company 2014 last June one of the judges Shane Garvey said the team placed a huge emphasis on design, which was something that his company Frontline Ventures saw as critical in the next wave of innovative companies. The Dublin-based start-up, founded in June of 2013 by sisters Emer, Kate and Aoibheann O’Daly, crowdsources new product ideas, such as jewellery, wall art and smartphone covers, through its online marketplace, enabling customers to personalise products and participate in the product creation process. By collaborating with a community of designers and by using 3D printing, they then create customisable, unique, 3D printed and locally-made products for design lovers everywhere. Currently raising its seed round of investment, Love & Robots has already closed Ð200,000 from a number of investors, including Frontline Ventures, Seedcamp and two Irish angel investors, and plans to grow the team of employees from six to 12 in the near future in the areas of sales and marketing, design and software development. “I think in the start-up world we are starting to see the power of good design,” says Aoibheann O’Daly, fresh from Love & Robots’ win of the ESB Spark of Genius Award at the Web Summit in Dublin in November. “Some start-ups are doing really well with design at their core such as Airbnb and Square. It is no coincidence that the most valuable company in the world Apple places huge emphasis on design. “Design is not just a logo or colour palette, but a way of thinking. Love & Robots was really built with design at its core. Two of the cofounders are designers so that has meant that design is built into the DNA of the company.” Love & Robots originally came about when Emer returned from

doing a digital design and fabrication master’s at Yale University in the US and decided to set up a company with Kate. “We intended to design using 3D printing and digital manufacturing. When we met Miguel Alonso at a start-up bootcamp in the NDRC in Dublin, we found we had a lot in common. He is a software engineer and was also intrigued by the possibilities offered by 3D printing, digital design and the maker movement,” Emer recalls. “We all saw these advances in technology and manufacturing as an opportunity to bring designers, consumers and manufacturing together in a way that was not possible before. Joining forces with Miguel, we decided to combine the connective power of the internet with digital manufacturing to create FabAllThings.” By December 2013, FabAllThings’ site was live and generating revenues. It had signed up over 800 designers to its platform from around the world, including Ireland, the US, France, Sweden, Spain, Australia and China. It had received over 145 crowdsourced designs, 1,400 votes and brought 55 products to market. Growth in all of these areas has been impressive since then. “Our design community is now up to over 6,000 from 48 countries and we’ve received 650 design submissions, 10,000 votes and brought over 100 products to market,” says Aoibheann

Changing branding The branding changed from FabAllThings to Love & Robots in the past couple of months, which she says puts more emphasis on allowing the customisation of its products. “Over the past year, we have been developing customisation tools and a 3D interface for our site, which allow customers to tweak and personalise our products in their browsers in real time. We then 3D print them on demand. “As for the new name, we wanted something universal and memorable. It really comes from the fact that our products combine the creative [love] with the technological [robots]. People seem

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one to watch

â&#x20AC;&#x2DC;Some start-ups are doing really well with design at their core such as Airbnb and Square. It is no coincidence that the most valuable company in the world Apple places huge emphasis on designâ&#x20AC;&#x2122;

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one to watch

‘Design is not just a logo or colour palette, but a way of thinking. Love & Robots was really built with design at its core’

to respond really well to it, even if they know nothing about the company. Even just reading the name makes people curious, and often makes them smile, which is really great. “The biggest changes for the new website were the addition of the customisation tools and the curation of the online shop. It was starting to get cluttered so it’s back down to about 40 products now, with more in the pipeline. We strive to make it as easy as possible for you to find great designs through our curation, choose our customisation through the tools and buy a completely unique product made just for you.” To date, Love & Robots’ business model has involved setting up partnerships with manufacturers in the US and Europe, which has been important in growing its international footprint. “Anyone can submit a design and vote on which ones should go into production and we manufacture the favourite designs. We organise the sale and distribution of the products with the designers getting royalties on each item sold,” says Aoibheann. “To achieve this we have worked with a lot of manufacturers in Europe and the US, having found ones primarily through our networks which work well for us at the moment. “Eventually, as 3D printing becomes more common, we want to produce closer to the end customer. Whether you order in Sydney or in London, 3D printing means we should be able to manufacture your item just down the road from you and ship locally – cutting down shipping time, cost and carbon footprint. We ship the files instead of the product. “We’ll always be willing to talk to more manufacturers. Ultimately, it’s about providing good service to our customers. If we can find someone who can do it better, cheaper and closer to our customers, we’ll work with them.” In terms of growing and scaling up the business, Aoibheann says the team has been focusing so far on building the platform, developing a 3D physics platform and growing its community of designers. “Our plan over the next year is to concentrate on building brand awareness and marketing internationally. So far the Web Summit has been fantastic for us both in terms of publicity and creating connections abroad.”

If N w

Sin

Following an intensive pitching round on the Builders Stage at the Web Summit in Dublin in November, Love & Robots was named the overall

winner of this year’s ESB Spark of Genius Award. The company’s prize included Ð25,000 in cash for the business and a range of services to assist in the start-up phase. Along with TenderScout and Restored Hearing, Love & Robots had made it to the final stages of the competition after being among 30 shortlisted start-ups that pitched to a judging panel in the preliminary rounds in September. The entrants were scored on the uniqueness of their idea, their level of development thus far and their potential for future growth. The final judging panel included Marguerite Sayers, incoming managing director of ESB Networks; Don O’Neill, VP of engineering, operations and infrastructure at TripAdvisor; Aditya Argawal, VP of engineering at Dropbox; Grainne Barron, founder of Viddyad, which won the award in 2013; Bill Archer, managing director, business at Eircom; and Eamonn Russell, partner at KPMG. “We are delighted to have won the 2014 ESB Spark of Genius Award,” said Emer O’Daly, CEO and co-founder of Love & Robots. “To compete against so many other amazing companies and to be selected as the winner is an amazing feeling.”

Vi w

Irish Director Winter 2014/2015

Exe

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new frontiers

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new frontiers

Appetite for

CONSTRUCTION Bam Group Ireland weathered the storm of the recession with a careful strategic approach and is now looking forward to further growth, writes Sorcha Corcoran

EO of long-standing Irish construction business Bam Group Ireland Theo Cullinane says the public private partnership (PPP) stimulus package of €2.2bn that is now approaching construction stage offers a “positive outlook” and should bring more confidence within the sector. Established in 1958, Bam Group Ireland (formerly known as Ascon) is one of the country’s largest construction businesses, employing 2,000 directly and indirectly. A wholly-owned subsidiary of Royal Bam Group in the Netherlands, its head office is in Kill, Co Kildare and it is mainly active in building contracting and civil engineering in the public, private and PPP sectors. In September 2014, Bam Group Ireland reported that it achieved a 31pc increase in turnover to reach €306m and profit before tax of €7.5m for 2013. “Construction was dramatically hit by the recession and this happened very quickly. It was my strategy from early on to keep our core experienced staff. And while there has been little credit available, we at Bam, as part of a large plc, were and are able to access funds to invest in major projects,” Cullinane explains. “We were involved in a number of large infrastructural projects during the downturn which helped to sustain our business. We also managed to retain a proportion of our core staff during this period by redeploying them on our international sites, where they’ve been gaining valuable experience on some fantastic

projects. “We have a rich talent pool of specialist expertise that we can draw upon as we continue to increase our foothold domestically and internationally.” Bam Group Ireland is very active internationally in partnership with Bam sister companies on projects such as the recently completed New Port of Aqaba in Jordan; a new stadium and hotel development in Al Ain, United Arab Emirates; as well as railway works in Scotland.

Domestic market In the domestic market, the company has completed four major PPP projects in recent years, including the recently finished Schools’ Bundle Three and Newlands Cross/N11 flyover (see panel). The Government announced Schools Bundle 3, or the third bundle of schools to be delivered by PPP, in 2008. It consisted of eight schools providing a total of 5,700 places. “Bam Group Ireland continues to invest in and deliver major social and infrastructural projects that support the development of the economy. We are the preferred bidder for Schools Bundle 4,” Cullinane notes. Otherwise, the company is involved in many other projects across Ireland, including the Clinical Research and Transational Research Facility at NUI Galway; redevelopment at Ulster Hospital; Glanbia ‘Project Purple; National Children’s Detention

‘Bam Group Ireland continues to invest in and deliver major social and infrastructural projects that support the development of the economy’ Winter 2014/2015 Irish Director

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new frontiers

Sod turned at Mercer Institute for Successful Ageing site Work started in October on the construction of the Ð40m Mercer Institute for Successful Ageing, located on the St James’s Hospital campus in Dublin and being delivered by Bam Group Ireland. The first sod was turned by Minister of State for Disability, Older People, Equality and Mental Health Kathleen Lynch. The seven storey state-of-the art facility is intended to provide a centralised facility for the institute’s clinical, education and training, research and creative life work with older people. The build will be completed by late 2015 and will create 250 construction jobs at its peak. The 15,000 sq metre facility will include innovative early diagnostic and rapid access ambulatory care clinics, in-patient acute assess-

Centre; and the Science Building refurbishment and extension at Sligo Institute of Technology. Bam is soon to start a new office development at Albert Quay, Cork, which is a joint development with John Cleary Developments. This follows on from the recent successful delivery of the 45,000 sq metre office and retail development at CityGate Park with the same developer. In October, Bam started work on the Ð40m Mercer Institute for Successful Ageing at James’s Hospital in Dublin (see panel). In terms of opportunities ahead, Cullinane feels Bam Group Ireland is “very well positioned” to play a major role in the construction of more offices and facilities for foreign direct investment (FDI) organisations. “Over the past few years, there was little office building activity and consequently there is now a significant shortage in Dublin and Cork particularly. International companies are looking for energy efficient, open design, innovative office space and Bam has particular expertise in this area. “While general construction activity remains challenged, there has been an increase in private sector investment, particularly in the office sector, driven by FDI demand. Real recovery [in the construction sector] will require public capital spending to rise to a sustainable figure, as a percentage of GNP, in order to bring tangible stability to the industry. “The larger urban areas, particularly Dublin, will lead recovery, but it will take a longer period before all communities feel it.”

ment, rehabilitation and a continuing care unit with 76 en-suite bedrooms and further ward spaces to accommodate a total of 100 beds. The building will also include research facilities, consultation spaces, meeting spaces, catering facilities, day areas, roof terrace spaces, a courtyard, and naturally lit foyer and conference rooms.

New free-flow junction at Newlands Cross completed Bam Group Ireland completed and officially opened the new free-flow junction at Newlands Cross junction four months ahead of schedule and within budget on 20 November. The flyover facilitates nationwide travel from the north to the south of Ireland without any traffic lights. The project involved the replacement of the existing signalised junction at Newlands Cross with a grade separated junction carrying the N7 over Belgard Road via a new flyover.

Roseanne Kenny, director, Mercer Institute; Minister of State for Disability, Older People, Equality and Mental Health Kathleen Lynch; and Theo Cullinane, chief executive, Bam Group Ireland;

It is a PPP between Bam Group Ireland and the National Roads Authority for the design, build, finance, operation and maintenance of the junction. Over 950 construction workers were involved in the project through its duration.

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pensions

Pensions regulator at the Pensions Authority Brendan Kennedy shares his views on what governance means in the management of pension schemes

Governance and

RETIREMENT BENEFITS A

pension scheme is not like a clockwork device – you do not wind it up and thereafter it runs itself. A scheme requires ongoing oversight and management to ensure it is functioning properly in the best interests of members. This management, which is the governance decisions made by the trustees, has a profound effect on the outcomes for the members, ie on the retirement benefits that they eventually receive. When we think of trustee decisions, we probably think first of the investment decisions made by trustees of defined benefit schemes. However, the decisions of trustees in both defined benefit (DB) and defined contribution (DC) encompass a wide range of issues involving not just investment, but administration, costs and member communication. Each of these decisions can and usually does affect the retirement benefits received by scheme members. We need to be aware of the impact that these decisions can have on the retirement income of members. In particular, we need to be more conscious of the importance of governance in DC schemes. Most DC schemes are in essence identical. However, trustee decisions will make a substantial difference to the retirement benefits that a member will receive. The costs that the members bear are the result of trustee decisions. The investment choices available to members are the result of trustee decisions. The default investment strategy is decided by the trustees. Just as importantly, the decisions made by the members are significantly influenced by how the trustees decide to present information and choices to those members. Trustee decisions are not always active. Trustees – whether they know it or not – make decisions if they unthinkingly accept advice

without considering it. They make decisions when they let their administrators take actions on their behalf without oversight, for instance in the areas of default investment, or member communications. Trustees’ responsibility for the governance of their scheme is not created by pension regulation: it is created by their acceptance of the role of trustee and the obligations they are accepting under the trust deed and rules of the scheme and under trust law. The obligation of trustees is to act in the best interests of the members, and the spirit of this obligation must be understood and accepted over and above the obligations of the Pensions Act. If there is any trustee who is unable or not willing to undertake this responsibility, they must question whether they should continue in their role. There are schemes that are very well managed. However, there are pension schemes that are poorly managed. It must not be a matter of chance for any of us which type we are in. The Pensions Authority’s objective must be to ensure that all schemes achieve high standards, given the crucial effect that governance has on the outcome for members. When we look at the regulation of Irish pension schemes, it is notable that the focus is much more on the outputs produced by the scheme than on how the scheme is run. By this I mean that our rules concern themselves much more with reporting on the results of the governance of the scheme – benefit statements to the members, certificates to the Pensions Authority, annual reports and so on – than with how that governance is undertaken, which is what determines what benefits the members are likely to receive. I am certainly not saying that the current regulatory obligations are unimportant – they are essential. What I am saying is that there is not

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pensions

sufficient oversight of the governance of schemes, both DB and DC. The assets of Irish pension schemes total about Ð90bn or more than 50pc of GDP. This represents a very large amount of savings, which has been entrusted by members to the scheme trustees. It is essential that there is adequate supervision of how they look after this money. The Pensions Authority therefore intends to seek additional powers to oversee how schemes are run and to intervene where it is felt necessary. The specific approach that the authority proposes to adopt differs between DB and DC. However, central to both is the concept of dialogue: governance is too complex and too nuanced to be reduced to a simple set of boxes to be ticked. We clearly recognise that to understand and to comment on scheme governance will require interaction between the authority and scheme trustees. The authority’s objective is to achieve compliance with regulation. This aim is wider than merely enforcing regulation: an important part of this is to make compliance easier and to support the great majority of trustees who are trying to be compliant. In recent months, we have undertaken a consultation on a draft code of DB financial management guidelines. We have also begun to roll out a series of model documents for defined benefit and defined contribution schemes. We will continue and indeed widen our activities in this area. In summary, we must all recognise the fundamental importance of governance. We must recognise the effect that governance has on the retirement benefits of members. High standards of governance must be the primary objective of all trustees, who must not be solely focused

on minimalist compliance with legislation. Because of the importance of governance, the Pensions Authority believes that there should be much more regulatory oversight of governance, and this is a priority for us. We recognise that our proposals represent significant change, but it is our view that this change is necessary in the best interests of scheme members. This is an edited version of a speech made by Brendan Kennedy at the Irish Association of Pensions Funds Governance Conference on 27 November in Dublin Castle.

The Irish Life approach David Harney, managing director, Irish Life Corporate Business, looks at how to ensure a company’s pension plan delivers Many companies in Ireland provide a company pension plan for employees but, in a lot of cases, the plan in place is not delivering what it’s supposed to – a decent income for people to live on in retirement. At Irish Life, we know this because we recently compiled a report examining the main factors affecting outcomes for employees at retirement. The full report can be viewed at www.irishlifecorporatebusiness. ie/release-our-defined-contribution-retirement-readiness-report, but two of the key findings were that people need to save more money towards their retirement and that people need to save for a longer period in order to improve the income they’ll get in retirement. We’re focusing on putting the structures in place to help improve these outcomes for employees. From an employer’s point of view, taking actions such as putting in place an auto enrolment system, where employees automatically join their company’s pension plan, or offering automatic increase mechanisms, where contributions increase at set stages, will encourage higher contributions and lead to improved outcomes. From the member’s point of view, we’ve focused over the last few years on providing market leading, engaging communications that clearly set out a member’s current pension situation and whether they are on track for the pension they want. We’ve developed a comprehensive, easy to use online portal, with accompanying smartphone apps, which allow members to constantly

‘When we look at the regulation of Irish pension schemes, it is notable that the focus is much more on the outputs produced by the scheme than on how the scheme is run’

keep track of their current pension situation and what their situation is likely to be at retirement. We believe that focusing on increasing engagement amongst employees will lead to those employees valuing the benefit of their company pension plan more and contributing more towards their plan. This will ultimately lead to better member outcomes at retirement.

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boardroom

Board

MATTERS Boards have a number of common roles and responsibilities, regardless of their organisation’s size or sector

he main purpose of a board of directors is to ensure its organisation’s long-term future and prosperity by directing its affairs and strategy, while always taking account of the best interests of its shareholders and other relevant stakeholders. These days, one of the most important roles of an effective board involves making sure the various stakeholders and potential investors are confident that the business is committed to the highest standards of governance and probity, says CEO of the Institute of Directors in Ireland, Maura Quinn. Quinn points out that boards face a “uniquely demanding set of responsibilities and challenges” in pursuing their main purpose. The range of objectives can seem contradictory, she says. For example, the board should be driving entrepreneurship and progress in the business, while also keeping it under control. It should be sufficiently knowledgeable of the operations of the company and its activities to be answerable for its actions, while still being capable of standing back from the day-to-day management and taking an objective and long-term view of the business.

It needs to be sensitive to the short-term pressures of the business, but capable of taking account of the long-term and broader trends. It must obviously focus on the business’s commercial needs but also act responsibly towards a range of other stakeholders, including employees, customers, business partners and the wider community. Quinn says that each board member is expected to recognise these challenges and apparent contradictions and ensure that they personally manage to strike an appropriate balance between all of the conflicting requirements. “In seeking to do so, executive directors may find it difficult to see beyond their direct focus on the business and its day-to-day problems, while non-executive directors may find it difficult to feel sufficiently informed about the daily pressures faced by the company,” she says.

The tasks While there is plenty of variation in the individual tasks of a board,

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boardroom

â&#x20AC;&#x2DC;One of the fundamental jobs of any board is to determine the vision and mission of the companyâ&#x20AC;&#x2122; Winter 2014/2015 Irish Director

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boardroom

‘Boards need to be able to work well together and individual directors must be capable of playing their part’ depending on the size and the nature of the business, there are four key areas that most boards would do well to focus on. The first is to set out the vision, mission and values. “One of the fundamental jobs of any board is to determine the vision and mission of the company in order to guide and set the pace of its current operations and future development,” Quinn says. “The board also plays a huge role in establishing the values and the culture of the organisation and ensuring that these are promoted throughout the business and permeate all levels.” Setting out and reviewing company goals and policies are also a key part of this. A second key area is setting the strategy and structure of the organisation. “The board needs to evaluate and review present and future opportunities, risks and threats from an external point of view, as well as considering the company’s own current and future strengths and weaknesses,” says Quinn. “It then needs to consider the various strategic options, select the ones that are going to be pursued and decide on a course of action to implement and support them. From that, it should formulate the tactics and plans that underpin the corporate strategy.” The third area involves delegating responsibility to management and then monitoring and evaluating the implementation of the policies, strategies and policies. Specific tasks within this area include deciding on the monitoring criteria to be used by the board, ensuring that internal controls are effective, and communicating with senior management. The last of the four areas involves the board’s accountability to shareholders and the need be responsible to relevant stakeholders. “Boards need to ensure that communications to and from shareholders and relevant stakeholders are effective,” says Quinn. “They need to understand and take account of shareholders’ and stakeholders’ interests. And they need to keep an eye on relations with these parties through gathering and evaluating relevant information. Another aspect of their role is to promote the goodwill and support of shareholders and stakeholders.” Quinn stresses that each individual board should decide what it needs to do in order to achieve its overall purpose and identify any gaps or deficiencies in what it is already doing. “And boards are

encouraged to focus on the tasks they must – or wish to – undertake themselves and decide which will more appropriately carried out by senior management,” she adds. “In many larger companies, boards will create a schedule of reserved powers that separates very distinctly those tasks that are to be the sole responsibility of the board and those that can be transferred to senior managers.”

The effectiveness of the board The board of directors is the main driving force for risk taking and enterprise within an organisation as well as for commercial and other judgements. In order to carry out these responsibilities effectively, boards need to be able to work well together and individual directors must be capable of playing their part. “One way to assess the effectiveness of your board is through an external board performance evaluation, carried out by an independent assessor,” says Quinn. “An independent evaluation of the performance of your board and its directors will help you to gain a valuable insight into its effectiveness and to assess how it is operating in key areas such as strategy, business principles, risk management, internal control, stakeholder management and boardroom practice.” According to Quinn, a performance evaluation will identify the board’s strengths and also pinpoint any areas for improvement.

Board composition It is also important to examine the composition of the board in the context of the specific skills and expertise required for the business, she says. “Every board should develop a customised skills matrix which can be used to assess board members’ skills in a range of key areas such as finance and risk, marketing, strategy, IT and so on and to identify any skills gaps that need to be filled. In many cases, particular specialist skills and experience will be required to enhance a particular board and will highlight succession issues that may be required into the future. “By developing a skills matrix you can ensure that that the most suitably qualified and appropriate individuals are appointed on the basis that they possess the requisite skills and expertise required by the board.”

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JAV551

“I’ve got my pension.” www.pensionsauthority.ie

Pension calculator

Information booklets

Pension checklists

An tÚdarás Pinsean The Pensions Authority

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Future business in association with Vodafone

MOBILE IN

MOTION

The rapid adoption of mobile devices and alwayson connectivity have become a business imperative, particularly in the areas of reaching customers and mobile working, writes Sorcha Corcoran

wo years ago founder of the world’s largest social network Facebook Mark Zuckerberg saw the trend of a complete audience shift to mobile. He called his top people into a meeting and said Facebook’s strategy needed to change and from then on it had to be a ‘mobile first’ company. This is a scenario that is becoming more and more common in Ireland as companies realise that the rapid adoption of mobile devices here is not something that can be ignored by top level management. From Facebook’s perspective, Ciaran Quilty, SMB regional director for EMEA, explains that Zuckerberg’s strategic body swerve effectively meant that every

single product review started with ‘how does this look on a mobile phone?’ before anything else. “It was a huge change affecting everything from products, engineers to infrastructure – everything had to be reengineered. We had to assume from then on that consumers were ‘always on’; in other words, always connected irrespective of the device or operating system.” Two thirds of Facebook’s US$3.2bn in revenue in quarter three of 2014 was from mobile advertising, so Zuckerberg’s judgment call appears to be paying off. Quilty illustrates the enormity of the trend globally: “Mobile is where our audience is now. Of the 1.3 billion people on Facebook, more than a billion are using it on

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â&#x20AC;&#x2DC;People are now looking at the world through a different lens. Often the first impression a person gets of an organisation is within 10 seconds on their smartphone or tabletâ&#x20AC;&#x2122;

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Future business in association with Vodafone

â&#x20AC;&#x2DC;Great content will always be in demand and the power of VOD to reach users on an emotional level underlies the popularity of this format for advertisersâ&#x20AC;&#x2122;

Ciaran Quilty, SMB regional director for EMEA at Facebook

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a mobile phone. When you think that there are the same amount of mobile devices in the world as toothbrushes – 6.5 billion – it’s incredible when you consider how long they’ve been around. “Renowned industry expert Mary Meeker’s internet trends report for 2014 shows that every day in the world 1.8 billion photos are shared on mobile phones and 90pc of the world’s data has been created in the past two years. The trend is unlocking so much time for everybody.” In Ireland, ComReg’s market report for the third quarter of 2014 shows there were 5.7 million mobile phone subscriptions at the end of September, which represents a mobile penetration rate of 124.9pc. From a population point of view, Quilty notes that of the 2.3 million people online in Ireland, the primary device is mobile for around 2 million of them. “Every day there are 1.5 million people on Facebook on their mobile phone in Ireland and the average person returns to Facebook 11 to 14 times a day on their mobile phone. “Mobile has been the great driver of our company’s growth in terms of the number of people using our services and

the time spent on our site has increased exponentially. The trend is fundamentally continuing. That is true not only in smartphone prevalent markets but also in developing markets where people often associate the entire internet with mobile.”

Video and mobile – a business opportunity Quilty says for Facebook the really interesting thing about mobile at the moment is that it is going to enable the next big wave of communication that is going to hit – video consumption on mobile devices. “The notion of saying ‘here’s a photo’ has changed to ‘here’s a [six-second] video’. Globally, Facebook had more than 1 billion daily video views on mobile devices last July, a volume which had grown by 50pc since May. “The rate of growth of video on mobile devices is staggering. For example, 17 million videos were created for the ALS Ice Bucket Challenge between June and September 2014, which were watched over 10 billion times. Mobile and video combined presents a great opportunity for businesses as a way to reach customers. We are seeing that coming through as a marketing trend now.”

Mobile outperforms in effectiveness study Research measuring the effectiveness of a mobile only ad campaign has shown that mobile advertising had a higher brand impact than the average scores achieved across other media. IAB Ireland’s Mobile Council commissioned a study by Red C Research on a specific mobile-only campaign for Innocent Super Smoothie range. An increase of 25pc was recorded in brand preference among those who saw the mobile ad versus those who didn’t see it. Applying Red C’S norm base for advertising evaluation, the Innocent Smoothie mobile campaign achieved a brand impact score of 80, which is higher than the norms for all other media channels. The campaign outperformed all other media on both rational and emotional impact. Adrian Acosta, chair of IAB Mobile’s Council, says the Innocent Super Smoothie campaign has clearly demonstrated that mobile advertising delivers powerful branding impact. CEO of Red C Research Richard Colwell adds: “It is expected that mobile advertising could have a good impact on the short-term rational call to action, but far more interesting is the impact that this mobile ad has had on the more long-term emotional connection with the brand, which has been shown to deliver a bigger return on advertising investment. It suggests mobile can be very effective at the heart of any campaign.”

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Future business in association with Vodafone

‘Mobile has been the great driver of our company’s growth in terms of the number of people using our services and the time spent on our site has increased exponentially’

On 11 December 2014, Interactive Advertising Bureau (IAB) Ireland launched new research tracking Irish users’ consumption and attitudes towards video on demand (VOD) in Ireland. VOD refers to streamed, downloaded video content online on any device. The research was conducted by Nielsen Ireland on behalf of IAB Ireland. It shows that 28pc of those surveyed watch VOD content daily, on a variety of devices. Engagement with VOD is strongest amongst 1624 year olds (50pc watch daily). Free advertising-funded platforms are the most popular method of accessing content (90pc).

Companies in Ireland embracing mobile

Key indicators – mobile adoption in Irish business • • •

90pc of businesses are now using smartphones for work

55pc year-on-year (to end quarter three 2014)

• •

Enterprise data users increased by 31pc in the last quarter

where it can add value

•

65pc of Vodafone customers are using smartphones as part of a

bring your own device or choose your own device policy

52pc are using tablets Nearly 90pc are using mobile data and usage has increased by

70pc of Irish businesses are freely embracing new technology

Source: Vodafone research Businesses ranging from small local retailers to large banks and professional services organisations in Ireland are incorporating mobile technologies into their strategies and seeing concrete results:

•

Permanent TSB mobilised its website in January 2013; within

18 months, 145,000 customers were using this service on a monthly basis. Its customers login roughly three to four times per month via their desktop but they login via their mobile device over 19 times per month

•

Estate agents Sherry Fitzgerald has regained two hours per

employee they were losing in travel time by embracing mobile technology

•

Ruth Monaghan, owner of Dublin florists Apashionata, views

Facebook as her online shopping window and sees a two times increase in footfall into her shop following targeted ad campaigns on Facebook

Acceptance of advertising in and around VOD content is strong (74pc) with half of those surveyed happy to watch advertising in order to view free content. Just over a quarter of respondents visited a brand’s website/ physical location after exposure to advertising in VOD content, 24pc have searched for a brand/product on the internet, 10pc have bought the brand and 19pc have amplified the message about the brand via word of mouth. “This Nielsen study confirms the high level of VOD consumption and engagement in the Irish market. The research illustrates how VOD complements TV campaigns in delivering harder to reach audiences,” says Maeve O’Meara, marketing manager, IAB Ireland. “Great content will always be in demand and the power of VOD to reach users on an emotional level underlies the popularity of this format for advertisers. VOD advertising spend grew by 75pc in the first half of 2014 – we look forward to further strong growth for VOD in 2015 and beyond.”

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THE VODAFONE

VIEW

Leo O’Leary, head of large business at Vodafone Ireland

Device penetration and the ability to be connected everywhere have brought mobility strategies to top management attention within organisations

he rollout of 4G technology across Ireland is a critical business enabler on the back of massive mobile device proliferation in the marketplace over the past few years, according to Leo O’Leary, head of large business at Vodafone Ireland. “For the business community, there are massive benefits in terms of being connected anywhere with superfast mobile broadband access,” says O’Leary. “Technologies such as 4G enable both consumers and enterprises to use mobile technologies in ways they never have been able to before. If you put that together with the strong trend of mobile device adoption, which is showing no sign of abating, it is an exciting proposition.” Vodafone customers in Ireland currently have access to the widest 4G coverage footprint, which stretches across six cities and 438 towns and villages – covering over 83pc of the country’s population, in addition to providing 3G coverage to over 96pc of the population. By the end of December, Vodafone customers in Waterford City Cork, Dublin and Limerick will have become the first people in Ireland to have access to 4G+ technology, which provides data speeds twice as fast as existing 4G. The compelling nature of the mobile movement means that it is increasingly being discussed in Ireland’s boardrooms in the context of overall business strategy, O’Leary has observed. “Three or four years ago, mobile technology was managed at procurement level as it wasn’t seen as a business imperative. Now, organisations are realising they need to be ready for the future and examine how relevant and critical different technologies are to the business when looking ahead,” he says. “Chief technology officers and chief information officers are looking at mobile in a way they never did previously and the responsibility for mobile within organisations has moved further

up the value chain.” A management trend which O’Leary has witnessed coming much more to the fore over the past 12 months is newly dedicated roles being created within companies to manage social media strategy. “This shows a clear statement of intent that organisations are taking social media seriously and want to recruit the right skills to keep up with the competition.” The use of mobile devices by staff has also reached top management level with the arrival of ‘bring your own device’ policies over the past couple of years and more recently, ‘choose your own device’ (CYOD). Vodafone research shows that 60pc of senior business people across 80 countries believe that flexible working and enterprise mobility is cost-effective and environmentally sustainable. “Because of the proliferation of devices the need for mobile to become a key enabler for individuals to carry out their roles has become greater. With CYOD, employers are taking things to the next level, giving employees a range of mobile devices to choose from. This has become particularly important for organisations wanting to attract the right talent,” O’Leary notes. As mobile screens become more prevalent than desktops, responsive design of company websites has become critical from a business perspective and therefore also of top management interest. “People are now looking at the world through a different lens. Often the first impression a person gets of an organisation is within 10 seconds on their smartphone or tablet. “This is equally as important from a business to business point of view. For example, if a company is looking to break into new markets and is looking for a supplier, the first thing it will consider is the look and feel of that supplier online to see if it has invested in technology and is leading edge,” notes O’Leary. Winter 2014/2015 Irish Director

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Future business in association with Vodafone

Integration of digital thinking into

BUSINESS MODELS

A recently released report highlights how Irish companies need to get to grips with technologies including mobile if they are to keep up and not lose business

rish businesses need to integrate digital thinking into their business model if they are to retain and grow their markets, according to a report published in December by BearingPoint Institute. The digital strategy report ‘Leap into the connected digital economy’ estimates that the online market is likely to constitute 20pc of the entire world market by 2030. While the report outlines the consistently strong value of physical stores, through innovative use of emerging digital technologies, businesses can offer bespoke, personalised services, resulting in new customer experiences. “The report confirms that there has definitely been a shift towards online shopping globally. However, consumers are looking for a blend of the online piece with physical shops. The growth of mobile and superfast broadband means we are all able to browse online while on the move. Consumers are now more attracted to those companies that can provide a full rounded experience and help to build largely a personalised solution,” says Michael O’Dwyer, partner at BearingPoint Ireland. THE CORPORATE PERSPECTIVE “From a corporate perspective, everybody has a smart phone and is always on and connected, which means that people within organisations tend to me more productive than they used to be. A lot of Irish companies are still buying mobile devices without having a clear idea of how to use them effectively from a work perspective.

Others are making use of simple solutions, such as collating information on shop floors using a smart device. Things that used to be done on paper are now being done on smart phones. The process is worked out on the screen and companies can compare and spot trends easier and faster.” The BearingPoint Institute report highlighted how car manufacturers – through the use of integrated digital services like music streaming, automatic traffic updates and anti-theft tracking – are embracing a combination of new technologies to enhance customer experience. However, there is concern that an unwillingness to adapt to new technologies, or a general ignorance of them, may be holding back Irish businesses. The report cited Blockbuster, Kodak and EMI as businesses that had failed to adopt a meaningful digital strategy in the face of internet-born competitors, suffering considerably as a result. “Irish businesses can forge an entirely new digital environment using technologies like big data and cloud computing,” said O’Dwyer. “These are widely available and widely regarded, and can have hugely transformative effects on a business, particularly in delivering new value to customers. “Adoption of these new technologies drives up not only productivity and efficiency, but profitability. An innovative Ireland that embraces this new digital economy will not only remain relevant, but encourage business creation and attract continued foreign investment.”

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Michael Oâ&#x20AC;&#x2122;Dwyer, partner, BearingPoint Ireland

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IoD member profile

POLITICAL

COMMUNICATOR Kevin Rafter is associate professor of political communication at DCU. He has been a member of the IoD since October 2014

Could you tell us about your job at DCU and what it involves? The job is a three-legged stool – lecturing, researching and administration. My research interests are in the area of media and politics, and I always have a few different projects underway at the same time. Publishing research internationally is important, and I’ve been fortunate in having my work accepted in several leading peer reviewed journals. I’ve two book projects with 2015 deadlines so they are consuming a lot of time at the moment. I also run an MA programme in political communication and have four PhD students. That work is very rewarding. What about your non-executive positions and your role as a media consultant? I’m a board member at Dublin Bus having come through the open public recruitment process introduced in 2011. I probably wouldn’t have been on the radar for appointment otherwise so I’m a big supporter of the new State board appointment reforms arising from the McNulty debacle. I’m also a member of the board of Oxfam Ireland. Both roles are challenging in different ways – joining the audit and risk committee at Dublin Bus has been fascinating. I think I bring media and political insight and judgment to both boards. Tell us something about your career background/progression My first job was as a researcher with Dublin Chamber of Commerce. I did undergrad and postgrad study in economics at Trinity College. But I then sort of stumbled into journalism when RTÉ was recruiting in the mid-1990s. I had a brilliant career in journalism reporting on elections here and in the UK and Germany as well as the Northern Ireland peace process. I also got to present programmes like This Week and Morning Ireland in RTÉ and worked in Leinster House covering politics for The Irish Times, The Sunday Times and the Sunday Tribune. While still working in journalism I had started a PhD in political science so when the opportunity arose in 2008 to move into an academic role I readily made the switch. What – if any – have been the main challenges of moving from life in journalism into academia? Moving from the private sector to the public sector has brought certain challenges but the roles are actually somewhat similar in terms of focus on continuous deadlines. Working as an academic – and I would have experienced this previously as a journalist – self motivation is vital. Both careers bring great privileges, particularly in terms of the quality of work I get to do, but equally there is a responsibility to deliver what the job demands – be that the incisive interview or quality research paper.

Can you tell us a bit about your work with the Independent Panel on Accountability and Performance in the Irish Civil Service? I was asked by the Government to chair this three-member independent panel. We delivered our report earlier this year after extensive consultations and over 60 meetings with politicians, senior officials, special advisers and others interested in the wider area. The work offered a fascinating insight into how the civil service system works. As chair I wanted a report with recommendations that, if accepted, would be implemented quickly and that wouldn’t require another review process or become bogged down in debate about legislative change. I think we achieved that objective. The new Accountability Board, in effect a board of directors for the civil service, offers huge potential especially with external members who will have the task of challenging and reviewing how the civil service does its work. Can you define your leadership style? Working as a radio presenter you develop the skill of listening. I think I’m good at hearing what people are actually saying. I’ve found as a non-executive director that listening is a valuable attribute. What has been your biggest lesson in business? In my three and half years at the Sunday Tribune I was part of the management team that sought to refinance and reposition the newspaper. It was a tough ask. Ultimately I came to realise that the Sunday Tribune was a good idea but probably wasn’t a good business. I had the same experience in a digital start-up that I was involved in last year. The idea was great but the business model was flawed. When you are so close to a project with all the emotional attachment involved it is a skill to recognise when it is time to move on. Who or what are your main influences? As a journalist I was lucky to met lots of interesting people. I only interviewed John Teeling once but I still recall his infectious enthusiasm. I was delighted when his work at Cooley Distillery came off so successfully. I also admire the ‘get up and go’ attitude of people like Michael O’Leary and my former RTÉ colleague Mark Little who has shown with his Storyful venture that Ireland can be a good place to start a business. Do you have plans for the future that you’d like to share? I have a number of research projects in the pipeline with various deadlines into 2015. I would like to develop with my non-executive director roles. There are lots of great ideas bubbling in the digital start-up space in Dublin. The cluster of big players like Facebook, Twitter and LinkedIn, alongside local start-ups, is very exciting. I have an early stage venture that draws on my previous media career and my current university work so I’d hope to see that develop.

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IoD member profile

‘I think I’m good at hearing what people are actually saying. I’ve found as a nonexecutive director that listening is a valuable attribute’ Winter Autumn 2014/2015 2014 Irish Director

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doing business in ...

As an emerging market, more and more Irish companies are becoming aware of the opportunities that Turkey can offer, writes Sorcha Corcoran

EMERGING

ECONOMY O

ver the past 10 years while all of Europe was struggling with the economic crisis, Turkey managed to keep growth rates to a level second only to China, and more and more Irish companies are becoming aware of the opportunities there, according to Jonathan Ryan, manager, Turkey, Enterprise Ireland (EI). Termed as an emerging market alongside countries such as South Africa, India and Nigeria, Turkey has a well developed infrastructure with continuous high levels of investment and has some well established world-class industries such as cement, construction, steel, automotive and white goods, along with its traditional textile sector. It is now ranked as the world’s 16th largest economy based on GDP and is moving from being a labour intensive, low value-added market to a technology-driven, export-led country. “Turkey, similar to Ireland, recognises that in order to compete on world markets, it must continuously innovate and its industries and service companies must move up the value chain,” says Ryan. “Turks have demonstrated that they are competitive in their established industries but recognise that they need to develop more value-added innovative products. There is a window of opportunity here for Irish companies. “Other countries are involved in working with the Turks to help them to achieve these goals, including China and Japan. Irish companies that have innovative technologies should look to Turkey as they will find enthusiastic partners to collaborate in developing both the Turkish market and other markets where Ireland has little track record.” Turkish companies have indicated they are willing to invest in such ventures and the Turkish government is providing financial assistance for them to achieve these aims. The most significant challenge in terms of breaking into the market though is finding the right partners that have access to decision-makers and with sufficient resources, notes Ryan. “Turks are very polite, hospitable people and they do business with people they like. They may give a positive indication that they want to work in partnership but this may not be the case as they

don’t want to be seen as being impolite and don’t want to offend. “It therefore takes time to develop these relationships and companies need resources to manage this. Do not expect to fly into Turkey, appoint a distributor and walk away.” Total Irish exports to Turkey in 2013 amounted to Ð430m, of which EI clients accounted for Ð38m. “EI has database of 120 companies that are exporting to Turkey. PM Group and ESB International have recently opened offices in Ankara. EI’s objective is to work with Irish exporters to increase the level of engagement in Turkey by establishing an on-the-ground presence for the region and to work closely with their distributors and partners.” Irish companies successfully doing business in Turkey come from a range of sectors, including specialised engineering and manufacturing as well as innovative software solutions.

Trade mission to build links Minister for Business and Employment Ged Nash led a four-day Enterprise Ireland trade mission to Turkey in October, during which new business was secured and business partnerships and contacts developed. Organised in co-operation with the Irish Embassy in Ankara, the trade mission visited Ankara and Istanbul and involved 30 Irish companies. Bilateral trade between Turkey and Ireland currently stands at over Ð1.2bn. In line with Enterprise Ireland’s strategy for growing export sales, the objective of the mission was to build on Ireland’s existing economic links with Turkey and boost bilateral trade between the two countries. The visit facilitated practical relationship building for Irish companies with their current and prospective counterparts in Turkey, as well as raising the profile of Ireland at the highest levels of government. “This was a successful mission both in terms of business secured and introductions and connections made,” said the Minister. “It is very encouraging to see Irish companies continuing to win new business in Turkey.”

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doing business in ...

â&#x20AC;&#x2DC;Turkey, similar to Ireland, recognises that in order to compete on world markets, it must continuously innovate and its industries and service companies must move up the value chainâ&#x20AC;&#x2122;

Business district in Istanbul

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doing business in ... Aside from PM Group and ESB International, they include Kells Stainless, Chameleon, dotMobi, Combilift, Dairymaster, H&K International, Inform Nutrition Ireland, Kerry Ingredients, Portwest and Openet.

Ventac in partnership with Turkish coach manufacturer Co Wicklow engineering firm Ventac agreed a deal to supply acoustic materials to Turkish bus and coach manufacturer Temsa Global in October. Temsa’s manufacturing facility in Adana has a single shift annual production capacity of 4,000 buses and coaches and 7,500 light trucks. Based in Blessington, Ventac provides acoustic engineering solutions for vehicle noise control and currently employs 41 people. It has been engaged by Temsa as an acoustic expert to assist the Turkish company in achieving new standards of cabin refinement for its new TS45 vehicle. Over a seven-month period, Ventac worked with Temsa’s research and development team to create a bespoke acoustic specification for the vehicle, which would achieve Temsa’s noise level targets. Thanks to the solution, noise levels have been reduced by up to 4.7dB within the coach cabin and Ventac will now become primary supplier of acoustic materials for the TS45. Temsa has expanded to 64 countries and is rapidly increasing its market share in the US. “This collaboration with Temsa provides us with a unique opportunity to develop our business in this geographic market,” said Ventac’s managing director Darren Fortune. “This marks the start of commercial activities between two innovative engineering companies who share a joint vision to provide operators and passengers with optimal comfort for long distance touring coaches.” The two companies intend to continue and expand the partnership for the development of existing and new Temsa products.

Consumer and economic trends Turkey is the 17th most densely populated country in the world with a population of 73 million. The majority of the population consists of young people, about 40pc of whom are under the age of 25, which will lead to major demographic growth. The rapid urbanisation of Turkey – and huge growth of Istanbul in the past two decades – has defined the transformation of Turkish society and politics. There has been intensive migration of people from rural areas and it is now estimated that in excess of 70pc of the population now live in urban centres. The three main metropolitan areas of Istanbul, Ankara and Izmir have a per capita income far in excess of the rest of the country, with Istanbul citizens enjoying 55pc more than the average. “Continuous economic growth will mean that these urban dwellers will become major consumers of high end consumer products,” says Ryan. “By 2023, Turkey expects to be among the world’s top economies. Although the aims of the country are extremely ambitious, the recent statistics denote that they are achievable. “The regional uncertainty of both Syria and Ukraine is a major issue in trying to predict further growth trends.”

Case study: Chameleon Colour Systems Chameleon Colour Systems from Tuam, Co Galway has been selling in Turkey for 15 years and managing director Padraic Timon says it has been a very successful market for the company recently. Founded in 1992, Chameleon specialises in the design, development and manufacture of paint mixing and tinting equipment that allows hardware stores or paint shops to provide consumers with custom shades that aren’t available on the shelves. It now exports to more than 57 countries. “From day one, more than 95pc of what we make has been exported. We have no direct contact with the shops; we sell to the paint brands, they buy our equipment and install it as part of their whole tinting system,” says Timon. “The paint brands we deal with are part of global companies and decisions are made at corporate head office. Once we get approved, we go to each individual country. For example, the company which owns Dulux has a plant in Turkey and bought some of our equipment for its Turkish customers recently.” Timon says it has become more apparent that Turkey is a big and rapidly growing market in the past five years. “Coinciding with the downturn in northern Europe, we’ve been working hard on identifying high growth markets. That involves getting out to the local market. From my experience, you can’t make any progress unless you do that. “The most important part is customer facing. Someone from our company would visit about four or five times a year and spend at least a day with people in Turkey. “Exhibitions are important for meeting paint companies, but they’re not necessarily exclusively in Turkey. From our point of view, direct contact is what it’s all about. I made a trip recently, and I met service engineers who passed on small nuggets of information that we can factor in for future products, or for when we talk to their bosses.” A small proportion of paint shops in Turkey have installed tinting machines, so the paint market doesn’t necessarily need to grow for Chameleon’s market to grow, notes Timon.

“Tinted paint is more profitable for paint companies, and more of them want to provide this. “Our ability to take part of that growth is down to the same issues: we’ve got to work extremely hard to make sure the products are successful and if we do that we’ll retain the business. If we give people no reason to change, they’ll stay loyal.” This is an edited version of a case study that appeared in Enterprise Ireland’s ‘Access Turkey - A Guide to Doing Business in Turkey’ report, published in 2014

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marketing

Brand BIBLE Fifteen drivers will be key to building successful brands in 2015, writes Kay McCarthy

number of key drivers are integral to building highly successful and transformational brand ideas that generate profits for their owners in 2015. With an ever changing empowered consumer, these drivers are vital to rising above the noise.

1. Recovery mode but still cautious Ireland is beginning to recover as indicators such as GNP are positive, (+5pc in 2015), unemployment has dropped back to around 11pc and consumer confidence is at the highest level since 2005. However, the lag between sentiment and spend could take a little while as we’re also seeing house prices and rents rising nationally (up 15pc) and by 25pc in Dublin. Couple this with the introduction of water taxes and pressures on disposable income will continue. This means that the behaviour of value hunting will continue as the discounters are now an accepted norm for many shoppers who are moving more of the weekly shop to these brands.

2. Brands rewrite the rules Brands that are truly 21st century are rewriting the rule books and re-purposing themselves, innovating their business model to deliver what the consumer needs and what their new mind set and purse will pay for. Examples include Hailo, Netflix, Airbnb and Dublin Bikes, which all allow consumers to pay for what they need when and how they want. Brands need to think like a business and identify where they can earn more revenue by innovating around a new consumer value system to stay relevant.

3. Mini pleasure seeking As consumers are gradually ‘feeling’ better, we are seeing some short-term mini pleasure seeking as they want to treat themselves as they tire of being good. They want to enjoy new discoveries that offer sociable and affordable experiences that bring the group

together in real-time, often enhanced by technology. However, this comes with limits and ‘a little often’ versus a big binge is expected. There has been strong innovation in the social scene at restaurant and bar level with the rise of accessible and casual gastro dining, quality beers holding their own, the rise of craft beers (albeit still niche), spirits and cocktails and pop-up dining.

4. Social clanning The group has always been important and now with technology the group can stay together always. Experiences that unify the clan real-time continue to grow this and offer marketers opportunities to move from community to tribe and to understand the cultural nuances around their tribe.

5. Your consumer is living in a global context Even if you are not a global brand, the context in which your consumer operates is global. This means that your brand and communication will not be just referenced against its competitive set but by that of its peers from another market.

6. Connect with them at a cultural level; avoid the pitfall of global blandness, unless it is a universal truth The most effective brand communication really demonstrates its understanding of the culture of the consumer even if it is global. Consumers like to be recognised for what makes them unique, and want this celebrated as the world becomes more global. A recent example was the Coca-Cola bottle campaign where each person’s individuality was recognised by way of their name. This most individual campaign was a positive surprise from an iconic global brand. Brands that get this really work well. Exceptions can be made, however, where a brand has found a rare and truly universal insight – Specsavers and Dove are recent examples of this.

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marketing

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marketing

‘There is a trend towards positive emotion post the era of austerity’ 7. The ‘always-on’ consumer Irish marketers have to manage a challenging recovery but what is more challenging is the rate of change that technology is bringing as we enter the age of the ‘always-on’ consumer. The average Irish consumer now has more gadgets than children and this has implications for marketers: consumers will wear out quickly if there is not enough engagement and layers to your messaging; they will want to use their multi screens to discover more and share more and if the right content is not there, they will move on and you will lose the opportunity and waste a lot of media investment.

8. Real-time not yesterday To understand the real-time consumer, marketers need to access real time insights and be capable of acting on them to continuously improve their messaging.

9. From brand tell to brand storytelling and doing The old model of brands using parent to child communications is well out of date. The always-on consumer wants a brand story that they can engage with. It needs to be based on accurate insights about them and not all about the brand. They want you to know them not to just talk about yourself. It goes one step further as consumers want brands to be doing what they value, to have meaning, brand propose. They want action not words.

10. The power of emotion even if communicating a functional benefit There is a trend towards positive emotion post the era of austerity. Brands that show positive emotion and make the consumer feel good do better than those that leave the consumer feeling isolated. Brands that use emotion to bring attention to a strong benefit get greater cut through. A good example is the Volvo Trucks Live Test series – there’s no better example of using emotion around a fairly core and functional product truth, namely steering.

11. A love hate relationship with digital to experiences Consumers use technology but it is to make their lives better. They want it to be seamless. Increasingly however, consumers are claiming that technology is taking over their lives. Studies have shown that they want to turn off and live in the moment momentarily to enjoy the moment more. They are seeking out real and live experiences to feel life more. A great example of this is Heineken’s

Music Sound Atlas, which does this but also ticks the global box for the consumer. Many high end restaurants and events now want consumers to turn off their devices for some of the experience so that they get more out of it.

12. ‘Always-on’ innovation The days of on and off innovation are gone as consumers want seamless and pain free experiences. Brands that use ongoing incremental innovation and to some extent see themselves as in beta always do better. Brands need to consider innovation as an ongoing programme to evolve their products to make them more and more relevant.

13. Simplicity Even though it would seem that we live in a complex world, we need to simplify what we communicate. But simplification in a world of more communication means that we need to bring more cut through ideas to consumers. Brands need one really compelling idea that is a strong enough brand and business generating idea.

14. The brand inside Great brands live out their brand on the outside but also engage their full internal audiences with the brand vision and purpose so that everyone not only understands the brand but also lives it. Embedding the brand into your organisation to engage and create innovation from within is necessary and fruitful as the wider internal team is a valuable touch point. This means identifying one brand team vision and purpose that excites and engages.

15. Find a brand purpose that is future proof As consumers use brands in new and evolving ways, not only do they need brands to offer great authenticity, they want brands to connect with their own values as well. Brands are looking beyond emotional and functional benefits to offer something more enduring and connective such as a brand purpose. Finding a brand purpose means being true to who you are and what you can do for the consumer, beyond the product or service and will create strong value and differentiation for brands of tomorrow.

Kay McCarthy is managing director of MCCP – The Planning Agency.

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commercial profile

Turkish Airlines’ Corporate Club – Where Business Meets Benefits Bernard McCarthy The Turkish Corporate Club has been designed with two goals in mind: To offer your company an easy and streamlined method to reduce travel costs and, in addition, to offer your company’s business travelers perks to make their travels as comfortable as possible. The Turkish Corporate Club has been designed with two goals in mind: To offer your company an easy and streamlined method to reduce travel costs and, in addition, to offer your company’s business travelers perks to make their travels as comfortable as possible. As a member of the Turkish Airlines Corporate Club, your company will save money each time it books its employees on Turkish Airlines from the origin where the country program is administered, to any of our international destinations using our special Corporate Club fares for Business, Comfort or Economy Class. This benefit is available to all members regardless of the number of tickets purchased each year. Most Corporate Club fares allow your staff members to rebook or reroute without incurring any penalties. All they have to do is pay the fare difference, if any. Since business plans can change quickly, this is a valuable benefit that can save your company a lot of money and, at the time, give your company the freedom it requires to respond quickly to the ever-changing business world. Your employees will enjoy generous baggage allowance, even when they are traveling in Economy class. With this very generous baggage allowance, your employees can not only take more business material with them but they can also do a little shopping at their destination to celebrate a successful business deal. As the holder of one of the Turkish Corporate Club Cards, your

employees will receive special pre-boarding benefits at the airport. These benefits are the ability to check-in at the Business Class Check-In counters and the right to enjoy our Business Class lounges in your originating country prior to boarding our international flights. Turkish Airlines is flying from Dublin via Istanbul to 264 different destinations around the world. A four star airline with a fleet of 237 aircrafts (passenger and cargo), we fly to 46 domestic and 218 international destinations and more countries than any other airline. Currently have 12 weekly scheduled flights from Dublin to Istanbul departing Terminal 1 in Dublin International Airport. For more information on Turkish Airlines or to book flights, log on to www.turkishairlines.com For Turkish Corporate Club membership inquiries Contact mail: tcc.area2@thy.com or log on to www.turkishairlines.com

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sector profile

Building

momentum

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sector profile

‘We are confident that we can see a sustained recovery of the sector because of the housing deficit and demand in the medical, commercial, and schools areas which is ongoing’

Glanbia’s new Belview dairy facility

Ireland’s construction industry is coming out of the severe battering it took during the downturn and there are signs of optimism, writes Sorcha Corcoran

o describe the effect of the recession on Ireland’s construction industry as devastating is an understatement. Now less than a quarter of the size it was at its peak in 2006, it represents about 7pc of the country’s GNP, down from 21pc, and 170,000 jobs have been lost in the sector since the property bubble burst. Construction Industry Federation (CIF) director general Tom Parlon illustrates the damage further: “In 2008, there were 40,000 mortgages taken out. This dropped to 2,500 in 2012.

Around 93,000 houses were built in 2006/2007. Last year, there were 8,700. “Six of the top 10 construction firms by turnover [in 2006] have disappeared, with the likes of Pierse, McNamara Construction and Bowen going into liquidation. The CIF has lost half of its members. The companies that have survived have become very lean, efficient and determined.” As 2014 draws to a close, industry observers are starting to be tentatively optimistic as signs emerge that the construction industry’s fortunes could be changing.

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sector profile

Plans to redevelop Boland’s Mill site A planning application funded

3,800 homes to be built following ‘Project Cherry’ acquisition

by Nama for the development of the Boland’s Mill site at Grand Canal Dock, Dublin, was submitted to Dublin City Council in December by receivers Mark Reynolds and Glen Crann of Savills. Boland’s Mill is the first major planning application to be submitted since the area was designated as a strategic development zone (SDZ) and is the largest proposed construction project for Dublin since the downturn. The proposed development will provide 36,759 sq metre of office, residential, retail/café/restaurant and cultural/exhibition space. In addition, this new urban quarter will create civic streets and

Hines Ireland completed its acquisition of the 400-acre Cherrywood

squares designed to bring neglected heritage buildings into new active

Business Park and Development Scheme in south Dublin in December

uses.

for a purchase price understood to be around €280m.

Reynolds said: “Boland’s Mill is the most iconic and recognisable

The site has been acquired with strategic development zone (SDZ)

Dockland frontage sites in Dublin, therefore the design team – consisting

approval for the construction of a new retail-led, mixed use town cen-

of Savills, Burke-Kennedy Doyle Architects, John Spain Associates,

tre, up to 3,800 apartments and houses, and zoning capacity to expand

ARUP, David Slattery Conservation Architects and Mitchell Associates

the office park in Dublin to three times its current size.

– worked to ensure that the proposed development accords with the

“Work will now begin in earnest to roll out a world-class master

requirements of the SDZ planning scheme and that best conservation

planned development which, when completed, will allow this import-

practice was adopted for the refurbishment of the protected structures

ant south Dublin hub to achieve its full potential,” said Moran, senior

on the site.”

managing director of Hines Ireland.

The overall development costs for the Boland’s Mill project will be over

“We are also acutely aware of the urgent need for large scale

€150m. Subject to planning approval, enabling and demolition work will

housing development in Dublin and our first priority will be to work

commence in 2015.

in collaboration with Dún Laoghaire-Rathdown County Council to accelerate the delivery of major infrastructure within the development,” he said. “We aim to deliver houses and apartments into the market

Following a slight rise in turnover to reach €9.9bn in 2013, the CIF is estimating that the industry will record turnover this year of €11bn. There are currently 106,000 people employed in the sector. A special report released by Construction Information Services (CIS) this month detailing the largest, active and ready-to-go projects for 2015 shows there are 518 key projects with a total value €11bn throughout Ireland already in the pipeline. This includes €1.4bn in industrial projects, €3.7bn in commercial, retail and hospitality and €1.4bn in residential. “We didn’t publish this annual report for four years because of the recession. This year, we have seen that things are picking up in terms of the number of planning applications and projects that had been put on hold as a result of Nama and lack of finance now coming back into production,” says Tom Moloney, CIS managing director. “We are confident that we can see a sustained recovery of the sector because of the housing deficit and demand in the medical, commercial, and schools areas which is ongoing. There will be a need for more nursing homes and private care facilities because of

as quickly as possible, and where permissible, sooner than currently planned under the SDZ. “Hines expects to partner with a number of other quality local developers and home builders to allow the project to be rolled out as quickly as possible.” The site was sold by Savills on behalf of Grant Thornton, the receiver appointed by Danske, Lloyd’s and Nama to a number of companies previously controlled by PAMES. Project Cherry comprised of a prime 400-acre land site located to the south of Dublin City, in addition to 52,312 sq metre (563,085 sq.ft) of built commercial accommodation in the well-established Cherrywood Business Park. “The sale of Project Cherry highlights the continued improvement and demand in the development and land sectors in Ireland,” said Mark Reynolds, director, development and consultancy at Savills. “This sale represents a development opportunity of scale that is unlikely to be repeated in Dublin again and is likely to be a priority location for development in the coming years.”

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sector profile

Recovery taking hold Over the past year the pace of recovery of the construction industry has quickened and a “solid enough” recovery is taking hold, according to chief economist Republic of Ireland at Ulster Bank Simon Barry. The Ulster Bank Construction Purchasing Managers’ Index (PMI) – a seasonally adjusted index designed to track changes in total construction activity – registered at 63.5 in November, down from 64.9 in October but still signalling a substantial increase in construction activity in

confidence. “Overall optimism among Irish construction firms improved sharply in November in reaching a new record high for the survey, which began in June 2000,” says Barry. One caveat Barry makes is that the levels of activity recorded by the PMI are coming from a low base. “Home building, for example, has fallen by 90pc to 8,300 units last

Ireland. Activity has now risen in each of the past 15 months. Anything

year. The rates of growth over the past few months might seem pretty

above 50 represents an increase in activity.

impressive – and they are, as they represent a decent acceleration from

“The industry has been recovering for some time but a key theme in

those very depressed levels. It is only through sustained growth over

2014 has been that this has become better established. The Ulster Bank

time that you recover the ground lost. That process is now looking better

Construction PMI has shown an expansion in activity across the sector

established.”

as a whole and there is evidence of the recovery becoming more broadly based,” he explains. “For the second month in a row, all three of the main elements of the sector – housing, commercial and civil engineering – expanded in

Another point of interest Barry extracts from the latest PMI is around what might happen in the future, which can be seen in what firms are saying about new orders and their view for 12 months’ time. “Firms have enough visibility on their order books to be able to

November. A number of sub indicators validate that. An encouraging ele-

sense that the near term picture is favourable. Firms are expecting this

ment of the story is that construction firms are hiring again. The PMI is

recovery to be sustainable, with the reasons cited linked to the perceived

showing strong and healthy trends, signalling that the rate of expansion

broader economic improvement. Three-quarters of all firms expect ac-

here is pretty sharp.”

tivity to be higher at their firms in a year’s time. When things fall so far,

Activity trends are being underpinned by substantial increases in new business flows, with companies attributing the latest expansion to gen-

it would be a bit disappointing if there wasn’t an expectation of things improving but the confidence levels are encouraging.”

eral improvements in the construction market and stronger economic

our aging population. “The overall requirement for housing is 20,000 a year, but it is not physically possible for the industry to build that much every year. In the Dublin area alone, there is an immediate need for 6,000 houses. Realistically, the industry will probably manage to build a total of 9,000 houses a year up to 2018, as estimated by the CIF,” says Moloney. According to Parlon, there is a need to encourage house building as clearly a housing crisis is building up with over 90,000 on the social housing list. However, he says, the industry doesn’t have the wherewithal to finance this so it depends on the State and State subsidies.

Government investment The Government announced in Budget 2015 a €2.2bn investment over the next three years to provide 10,000 social housing units. “This is a fabulous figure but we are still waiting to see the detail of what it means – meat needs to be put on the bones, but everyone’s mouth is watering about it,” says Parlon. “Our capital expenditure programme of investing in schools and roads was cut very badly – austerity meant a 70pc reduction in public sector work. If the Government could get over the trauma with Irish Water, it should start investing more in capital programmes. “A bit more is happening next year in terms of capital expenditure. Work is to start on the Gort-Tuam motorway and the National Children’s Hospital – a project expected to cost more than €300m – will enter the planning stage. The Central Bank is taking over the

carcass of the former Anglo Irish Bank building on Dublin’s North Wall Quay and its re-fit is out for tender, which should be a contract worth around €100m, and there also is a new maternity hospital in

Construction firms in Australia Eighteen Irish construction and engineering companies went to Australia for an Enterprise Ireland trade mission led by Minister for the Diaspora Jimmy Deenihan in November. The mission visited Perth and Brisbane and ws organised by Enterprise Ireland in co-operation with the Embassy of Ireland in Canberra and Consulate in Sydney. The 18 Irish companies participating in the trade mission were from the construction, engineering and software and services sectors, where there are significant opportunities in Australia and strong growth potential. Enterprise Ireland client companies are now exporting goods and services worth almost €300m annually to the Australian market, which is the largest in the Asia Pacific region and the ninth largest market for the agency’s client companies.

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sector profile

‘When the Irish economy was at its peak during the Celtic tiger years, the construction industry played a bit part in driving it’ planning.” There have been a number of big projects in the private sector thanks to foreign direct investment (FDI) and lately significant investments by indigenous companies have also been coming on stream. Parlon cites Intel’s €3.64bn investment in upgrading its fabrication centres in Leixlip over the past three years, Shell E&P Ireland’s €4bn investment in the Corrib gas project in Co Mayo and Diageo’s recently opened €300m brewhouse in Dublin.

Philip Crampton, CIF president and Tom Parlon, CIF director general with (back row) Theo Cullinane, CEO, BAM Contractors; Stephen McCarthy, managing director, Astra Construction; Hubert Fitzpatrick, CIF director; and Michael Stone, CIF senior vice-president As for indigenous companies, Parlon notes that Glanbia Ingredients Ireland Ltd is developing a new dairy facility in Belview on the Kilkenny/Waterford border that will create 76 direct and 1,600 indirect jobs, while Kerry Group is investing €100m in the establishment of a major innovation centre in Naas, Co Kildare. “When the Irish economy was at its peak during the Celtic tiger years, the construction industry played a bit part in driving it. Now we believe we can play that role again with massive potential to create jobs,” says Parlon.

Bristol-Myers Squibb building facility in Dublin Bristol-Myers Squibb Company is planning to build a new state-of-the-

business and the increasingly important role that biologic medicines

art, large scale biologics manufacturing facility in Cruiserath, Dublin

will play in Bristol-Myers Squibb’s future,” said Lamberto Andreotti,

15.

chief executive officer, Bristol-Myers Squibb. “For 50 years, Bris-

The company said the new facility would significantly increase its

tol-Myers Squibb has maintained a significant manufacturing presence

biologics manufacturing capacity and play a central role in its global

in Ireland, and we look forward to building on that legacy through this

manufacturing network.

significant expansion of our manufacturing capability.”

Around 350 to 400 scientists, engineers, bioprocess operators,

“This facility will be the second biggest investment won by IDA’s life

quality specialists and other skilled professionals are expected to

sciences division and is a major vote of confidence in Ireland’s ability to

work at the facility when construction is completed. The construction

win large scale capital investment projects,” said IDA chief executive,

programme, meanwhile, is expected to create around 1,000 jobs. The

Martin Shanahan.

facility is expected to be operational in 2019. The 30,000 sq metre facility will house six 15,000-litre bioreactors

“The planned facility from Bristol-Myers Squibb will be dedicated to the production of biologic medicines, an area Ireland now excels in.

and a purification area as well as office and laboratory space. The

The availability of highly trained staff is vital to this growth, and Ireland

plant will be built on the grounds of the company’s existing bulk phar-

has a dedicated centre addressing this need – Nibrt (National Institute

maceutical manufacturing plant.

for Bioprocessing Research and Training), which provides training to

Bristol-Myers Squibb’s board of directors has approved initial funding that will support the first phase of the project. The company

over 2,000 people a year.” “Bristol-Myers Squibb’s announcement that it will develop nearly

said the full cost of the facility, expected to be finalised in the second

a billion dollar biopharma facility in Dublin is a gamechanger,” said

half of 2015, is anticipated to be similar to the approximately US$900m

Nibrt CEO Dr Reg Shaw. “It endorses Ireland as the best location in the

investment to construct and operationalise the company’s biologics

world for bioprocessing investment.”

manufacturing facility in Devens, Massachusetts. “Our investment in this new facility reflects the strength of our

The company worked with the Department of Jobs, Enterprise and Innovation.

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patron news

MERC Partners Vodafone customers strengthens market position first to experience 4G+ in

with new appointment

Ireland

Ruth Curran, managing partner, MERC Partners with Jackie Gilmore, director, MERC Partners MERC Partners is pleased to announce the appointment of Jackie Gilmore to the position of director. Gilmore brings 16 years of commercial industry experience across several sectors, namely technology, financial services and telecommunications. Before joining MERC Partners, she held a number of senior leadership roles, most recently with Telefónica O2 Ireland, where she spearheaded the development of O2’s commercial strategy for the indirect consumer sales and financial services businesses, holding responsibility for driving subscriber revenues, managing partner relationships and evolving the financial services agenda. Previously, she worked with the global investment management group F&C Investments, where she was responsible for strategy, business development and marketing. Prior to this, she assumed accountability for product development and distribution at EBS Building Society and Bank of Ireland. Earlier, she held roles with Hewlett-Packard and Adobe Systems. Gilmore holds an MA from Heriot-Watt University in interpreting and translation and an MBA from UCD Smurfit Graduate Business School. She speaks French, German and Spanish fluently and has considerable international experience. “With Jackie’s appointment, MERC Partners continues to strengthen its position in the market, combining deep knowledge in executive search with relevant industry experience, ensuring we continue to meet our clients’ needs, whilst raising the bar that defines service excellence,” said Ruth Curran, managing partner at MERC Partners. Gilmore added: “For many years MERC Partners has enjoyed a reputation as Ireland’s premier executive search firm. Its capabilities, collaborative approach and global mindset, supported by its relationships with IIC Partners Executive Search Worldwide, places it as the natural choice to assist organisations deliver competitive advantage into the future.”

Vodafone technology director Madalina Suceveanu with enterprise director Anne Sheehan Earlier this month, Vodafone became the first operator to deliver Ireland’s 4G+ technology, providing speeds up to twice as fast as first generation 4G, and speeds exceeding the standard fixed-line broadband experience. Since 1 December, Vodafone customers in Waterford City have had access to data speeds of up to 150Mbps with 4G+, while Cork, Dublin and Limerick cities will be switched on by the end of December. With 4G+, customers can now experience the fastest speeds available on mobile to enjoy services like instant video streaming in HD, live TV with high reliability and the potential to broadcast live from events. In addition, business customers can download higher volumes of data even faster than before. 4G+ is available to Vodafone RED Super Business and RED Extra Super bill pay customers at no extra cost until April using one of three select Samsung 4G+ enabled smartphones: Galaxy Note Edge, Galaxy Note 4 and Galaxy Alpha. Celebrating the launch of the first 4G+ network in Ireland, Vodafone technology director Madalina Suceveanu said: “Vodafone customers in Ireland already have access to the widest 4G coverage footprint, which stretches across six cities and 438 towns and villages – covering over 83pc of the country’s population, in addition to providing 3G coverage to over 96pc of the population. In tandem with our 4G rollout, we are modernising our network nationwide, providing customers with improved voice call quality and data services to all areas with existing voice services. This new addition of 4G+ services is an even greater boost for our customers. Quite simply, 4G+ downloads, streams and delivers chosen content even faster than before.” 4G+ speeds are delivered by combining two 4G bandwidths. Location coverage maps will be available as areas are switched on. For full details of 4G+ please see www.vodafone.ie/network/4g. 4G+ is available to Vodafone RED Super Business and RED Extra Super bill pay customers at no extra cost until April using one of three select Samsung 4G+ enabled smartphones: Galaxy Note Edge, Galaxy Note 4 and Galaxy Alpha.

Irish Director Winter 2014/2015

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BUSINESS LEADERS SHAPING A BETTER FUTURE

CSR CAMPAIGN

In association with

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Community connection Welcome to the third of our special reports on CSR – this one focusing on community. Additional content can be viewed on www. businessandleadership.com/ sustainability. Community covers how businesses engage with their local communities. This can range from providing funding to a local football team to structured initiatives and programmes involving employees volunteering their time to improve the lives of the people living nearby. Often this involves schools or local charities. The benefits of enriching the local community in such ways are far reaching, not least in that they improve employee engagement within businesses. As with previous reports, we look at best practice in the area and talk to business leaders we can all learn from. Companies that stand out in terms of their commitment to their local communities and featured in this report include Shell E&P Ireland, Siemens and An Post. We were proud to be a media partner of Business in the Community Ireland’s Responsible Business Forum, which took place at Dublin Castle on 11 November. Video interviews with speakers from the event – including Lloyd Burdett of The Futures Company, Penny Hughes of RBS, former Unilever VP Geoff McDonald, and Deloitte’s Brendan Jennings – are available to view on www.businessandleadership.com/ sustainability. Thanks again to our CSR campaign partners for their support – Shell E&P Ireland, Friends First, PM Group and An Post. Our next special report published in our spring edition in 2015 moves on to environment – we would love to hear from you if you want to highlight the work done by your company in relation to preserving and having a positive impact on the environment. Sam Hobbs Managing director Business & Leadership Ph: +353 1 625 1425 Email: shobbs@businessandleadership.com Irish Director is published by Business & Leadership Ltd Ph: +353 1 625 1400 Email: info@businessandleadership.com Address: Office 4, 6 Main St, Dundrum, Dublin 14 © Business and Leadership Ltd 2014

72 76 78 Contents BROADER PURPOSE

MARK OF SUCCESS

CHANGING CULTURE

NETWORKING

GOOD BUSINESS SENSE

EDUCATIONAL MODEL

CHANGING ATTITUDES

Successful brands of the future will be those with a bigger purpose Nine companies accredited with Business Working Responsibly Mark How the issues around corporate responsibility have developed The Responsible Business Forum conference in Dublin Castle Why CSR is embedded in how Shell E&P Ireland conducts its business How Siemens is engaging with community through educational programmes An Post’s work to address adult literacy issues

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Purpose

DRIVEN

Successful businesses and brands of the future will be those with a broader purpose

ngaging with local communities in a genuine and relevant way as part of an overall sustainable strategy has become increasingly important for business in recent years, a trend that is set to continue, says Lloyd Burdett, head of global clients and strategy at The Futures Company. According to Burdett, employees are a key driver for the trend. “Employees want to work for organisations and companies that really give something back and have a broader purpose to what they’re doing. Unilever is now the third most favoured employer after Apple and Google and they put a large part of that down to the effort they put into things like sustainability. “I think the consumer standpoint probably was the first thing to emerge, but what we’re seeing now in our own work, our own research and trends in this area is a real desire – particularly among the millennial generation – to do something that’s worthwhile, not just from a material standpoint but in terms of evolving them as people and also putting something back and making a difference. It’s about wanting to do something that feels a bit more worthwhile in society and having a broader social impact. “And I think from the consumer perspective and the broader business, there’s a real expectation now that a business needs do more than make things and sell things. They have to have a broader purpose to what they’re doing, and putting something into society

and their community is really important to give that sense that they’re not just here to make money.” The way in which organisations engage with communities has changed significantly in the last recent years, Burdett says. Traditionally, companies tended to equate CSR with donating to charity. “One of the big trends we’re seeing is the feeling that that’s not enough. Anybody can do that. “It needs to run through the overall business culture and run through a lot of the true business values, the way the business is run. That’s one of the key shifts we’re seeing: going from one-off donations and supporting causes to truly being built into the DNA of an organisation. So, it’s not just more sustainable products but actually going into the ways of working, how the organisation treats its suppliers, how it treats its employees, how it treats its end consumers.” Burdett references Geoff Mulgan’s book, The Locust and the Bee, which talks about businesses being either predators or creators. “The locusts suck the value out of things and don’t give back. The bees work together for a broader cause. He’s really encouraging businesses in the 21st century to be more of a bee. “The other simple way of thinking about it is when you’re thinking about what your business is doing, ask yourself one really simple question, ‘would you do it to your mum?’ In many ways, it’s as simple as that.”

‘There’s a real expectation now that a business needs do more than make things and sell things’

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‘The businesses that will thrive and the brands that will rise to the top will be those that really adopt these new practices’

Burdett believes that the businesses that succeed in the future will be the ones that employees and consumers feel kinship with and want to be associated with. “And that means you have to be a business that has that broader social purpose,” he says. It’s something he believes banks are starting to take to heart now. “The likes of RBS and its various franchises around the world, and Lloyds TSB here in London, are doing a lot more communitybased marketing. But if you look inside the organisations, they’re also really trying to change the culture of their business because they know the financial services industry is somewhat seen as a business and sector that’s not been doing the right thing for the last 10 or 20 years.” Burdett says he firmly believes that this is how businesses will operate in the future. “We’ve just published a point of view on the 21st century business and what it looks like. One of the key things we believe is that because there is a whole number of drivers of change in the business context that we don’t see going away in the next 20 years, they’re here to stay. As long as those drivers remain, this is not a fad. This will continue to be not just a trend but grow in its importance. “On the one hand you’ve got advances in social media which enable us to spread the good and bad news about businesses very quickly. That’s really driving the need for businesses to be transparent in everything they do. “Also, the way the broader business context is evolving: everything from the resource pressures that we face and the genuine focus on sustainable development. In an economy that’s becoming more competitive and a consumer that’s becoming increasingly discerning and demanding of what businesses do, I think the businesses that will thrive and the brands that will rise to the top will be those that really adopt these new practices.” It’s vital to align with initiatives that relate to the business, he says. “If it’s not directly relating to the DNA or the business, it’s a little bit of a throwaway. It doesn’t quite chime with what the

business is about or its values. It’s important to align what you’re doing in the community and make clear why that’s related to your core business. A good example is American Express which does a lot of work with small businesses, and that makes sense – a big multinational brand aligned with credit and they’re doing things to enable small businesses to thrive. Unilever initiatives around the world to do with things like hygiene align very much with what its business is about.” Burdett has advice for companies wanting to become more engaged with their communities. “One is, don’t necessarily think you need to do it all yourself. There’s real value in partnering with other community-based organisations, people who are already engaged in the community, because generally it’s quite hard to do this alone and do it right. There are other organisations – like Business in the Community – that are doing this kind of thing on a daily basis and can help you understand how you can contribute, interact with them, and do it in the right way. “Secondly, the idea of co-creation with the communities is a really important facet of this and for some businesses that might mean working in a slightly different way than they’re used to. Rather than doing something to a community or for a community, it’s about doing it with them. Shell has admitted it went into [the Corrib gas project] with the wrong mindset. They felt they were managing a community. You’re not managing it, you need to go in with the emphasis of working with it, and co-creating a solution.” He notes that business culture in general is changing, becoming more open and fluid. “Only by opening your doors – through partnership, co-creation, being more networked – can you create the trust that most businesses are looking for. Within trust there’s this idea of respect – trust comes from respecting things, respecting your suppliers, your employees, your consumers, and also what you’re putting in your products. Go back to the question, ‘would you do it to your mum?’.”

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Mark of

SUCCESS

Nine companies were recently recognised as leaders in the area of social and environmental practice in Ireland with the Business Working Responsibly Mark

icoh Ireland, Ulster Bank, Marks & Spencer Ireland, Musgrave Group and Northern Trust were recently accredited for the first time with the Business Working Responsibly Mark, while EirGrid, Transdev Ireland, Pfizer Healthcare Ireland and Accenture Ireland were reaccredited with the prestigious standard. The Mark is awarded by Business in the Community Ireland (BITCI) and audited by the NSAI. Based on ISO 26000, the Mark is open to all large companies in Ireland and valid for two years. “Ireland has rebuilt its reputation on the international stage, and we need business to support the Government as we show that Ireland is an excellent place to invest and to establish a business,” said Tánaiste Joan Burton, who announced the newest recipients at BITCI’s annual CEO Forum, which seeks to bring the latest developments in the area of sustainability to Irish business leaders. “Increasingly, good corporate social responsibility practices are distinguishing the best companies from their competitors. The way that businesses integrate social and environmental concerns into their engagement with customers, suppliers, employees and local communities is becoming hugely important to the sustainability of their business. “Having a mix of indigenous and multinational companies achieving the Business Working Responsibly Mark today strengthens Ireland’s case for foreign direct investment and sets the standard for other companies already operating here.”

Forward-thinking companies BITCI CEO, Tina Roche noted that 2014 had seen a significant growth in companies achieving the Mark. “It is inspiring to see so many companies using the Mark as a framework and working hard to embed corporate responsibility at the heart of what they do. These forwardthinking companies understand that customers, employees, investors and regulators place a high premium on trust and ethics.” Roche said the 16 companies that are currently accredited with the Mark are leaders in the sector and an inspiration to all businesses. The other companies with the Mark are Microsoft Ireland, ESB, CRH Ireland, Intel Ireland, Boots Retail Ireland, Bord Gáis Networks and Deloitte Ireland.

Alison Grainger, head of Marks & Spencer Ireland; Clive Bellows, country head, Northern Trust; Gary Hopwood, general manager, Ricoh Ireland; James Brown CEO, Ulster Bank; and John Curran, Musgrave Group Gary Hopwood, general manager of Ricoh Ireland, described the Mark as significant for Ricoh on both a local and global level “as the company prides itself on being a good corporate citizen and has demonstrated high standards of corporate social responsibility in many key projects”. A recent example is the company’s partnership with ReCreate Ireland to promote sustainability in schools – Ricoh donates and diverts end of line and surplus stock and ReCreate reuses this as arts materials at its Creative Resource Centre in Dublin. Ricoh Ireland is also working with Focus Ireland this year on a number of fund raising initiatives. Head of sustainability at Musgrave Group John Curran described getting the Mark as a significant achievement for his company. “It confirms that we operate to the very highest standards of responsible and sustainable business practices. During the process of achieving the mark, Musgrave was assessed across 27 key indicators, which covered 300 individual metrics within five business areas, including workplace, marketplace, environment, community and CR management andcommunications. The process also provided us with a road map to develop and enhance our sustainable policies and practices into the future.” Special Report: CSR community Irish Director

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Changing

FOCUS

BITCI’s Business Working Responsibly conference is a bellwether of the changing focus in corporate responsibility

ver 400 business leaders attended the third Responsible

you take people who are best in class, they will talk about how responsible and

Business Forum, which took place in Dublin Castle in

sustainable behaviours permeate the whole of the organisation. And whether

November and was organised by Business in the Community

that’s environmental behaviours or social behaviours or governance, it has to be

Ireland (BITCI).

embedded right throughout the organisation.”

The main themes of the conference were trust, reputation

A key subject for discussion back in 2003 was community investment. “You

and culture and how to both build and rebuild all of these within an organisation.

still talk about community investment, but community is seen as a stakeholder

“We were looking at how we can rebuild trust with our employees but also our

among the others, like employees, like your supply chain.”

other stakeholders, like suppliers, many of whom were burnt over the last few years,” explains Tina Roche, chief executive of BITCI.

A big change over the last decade or so has been the increasing focus on talent and innovation, says Roche. “Ten years ago you would have heard the first

“In reputation, we were looking at how you rebuild the reputation both of

rumblings around innovation, but now it’s all about innovation and culture of

Brand Ireland but also of our companies so that once again customers are

innovation and about knowledge and talent. Then, we were taking much more

thinking of businesses in a very positive light. We were asking, what does our

about manufacturing and engineering. This time, people were taking about

reputation look like and how is it affected by our behaviours and policies?”

emotional intelligence and about Ireland not only being a good place to do

Reputation is also an increasingly important consideration for investors,

business but the best place to do business.”

Roche points out. “More and more investors are looking at environmental and

One of the most positive developments over the last 10 years has been the

social and governance issues. So, how do we tell them what our reputation is in

increased emphasis on aligning behaviours and values within business with

these areas and show them and demonstrate our behaviours and our culture?

personal values and behaviours, Roche says. “If you felt uncomfortable doing

“I think culture encompasses all of that. It’s having a culture internally that will build your brand, build your reputation, but will also build trust internally.” The themes and focus have changed substantially since BITCI’s first CSR

something in business 10 years ago, you wouldn’t have spoke about that. But now, right through organisations, people will say, ‘I’m not comfortable with that, I don’t feel that’s the right thing to do’. And people are encouraged to say it.

conference was held in 2003, Roche says. “Then, we were very much looking

“As Lloyd Burdett from The Futures Company asked the audience at this

at what corporate responsibility means. That question doesn’t really come up

year’s conference, ‘are you a bee or a locust?’ Are you building something

much anymore. People understand it.

extraordinary with people, or are you short term? Are you a locust that will just

“That said, there are different understandings of it – some people still think it’s philanthropy but they’re people who are just starting out on the journey. If

land, eat everything all around and take off again? So, it’s the whole idea of being around for the long term.”

‘I think we’re going to have to rethink how we live on the planet’

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The fact that companies like RBS, BASF and Shell were prepared to talk

she says. “They know the business best, so how do we harness that? And for

about the mistakes they’d made and the lessons they had learnt was one of

multinational companies when they have tens of thousands of employees, how

the highlights of this year’s conference for Roche. “It was an extraordinary

do they get that wisdom of crowds together?

discussion because you had companies saying we should know better, we made mistakes and this is what we have put in place so that doesn’t happen again. It’s not like everyone is perfect. If you make a mistake, it’s what you learn from it and how you try to change those behaviours.”

“The second thing I think is going to happen is more innovation around resources as we increasingly come up against resource depletion. “The third area I think will have to be addressed is biodiversity. Fifty percent of the planet’s species have disappeared in 40 years. Climate change, of course,

Looking to the future and the possible focus of the next conference, Roche

is going to be an umbrella to all of this. I think we’re going to have to rethink

says she believes the increasing level of employee involvement in organisations

how we live on the planet. What is it we’re going to have to address to be able to

may be one of the key subjects for discussion. “The structures will have to

feed people and to give them a better standard of living? Businesses are going

change to make that happen because the answers are with all of our employees,”

to have to be innovative around that.”

Tina Roche, chief executive, BITCI

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Building trust and responsibility More than 400 business leaders gathered in Dublin Castle on 11 November to hear from the Responsible Business Forum, organised by Business in the Community Ireland. The theme of the conference was trust, reputation and culture, and the audience heard from a range of Irish and international speakers, who shared their experiences of and learnings around facing reputational challenges, as well as those who have embedded responsible and sustainable practices at their core. Business & Leadership was proud to be a media partner at the conference.

Brendan Jennings, managing partner, Deloitte

Geoff McDonald, former global vice-president human resources, Unilever

Lloyd Burdett, head of global clients and strategy, The Futures Company

Penny Hughes, non-executive director, RBS Group

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Kieran McGowan, BITCI and Jackie Harrison, The Community Foundation for Ireland

Emma Curtis, Claire Millar and Christina Brown, PwC

Sarah Connolly, Irish Distillers

Graham Healy, Accenture and Aileen Mooney, An Post

Audience at the Responsible Business Forum Special Report: CSR marketplace Irish Director

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Commitment to community makes

GOOD BUSINESS SENSE Corporate social responsibility is embedded in the way Shell E&P Ireland Limited conducts its business, explains MD Michael Crothers

decade ago most Irish business leaders would have described corporate social responsibility (CSR) as a somewhat fluffy, ‘nice to have’ business philosophy. Nowadays, most senior company executives would acknowledge that it is a ‘must have’ business enabler. Society in general and communities in particular now expect businesses to be exemplary corporate citizens in the areas where their operations are located – and that means doing much more than simply providing employment. According to Michael Crothers, MD, Shell E&P Ireland Limited (SEPIL), CSR is embedded in the way his company conducts its business. In Co Mayo, where SEPIL is the lead operator of the Corrib gas project, this boils down to respecting the local community and striving to be a good neighbour. “In practice this means engaging and listening to the community’s concerns in order to be able to respond to them, understanding local needs and working with the community to deliver them,” he says. “From a rocky start, we reached out to the community and have shown that we have listened and learned. We received a great response from the community and we are grateful for its acceptance. You do have to work at a relationship like this, it doesn’t happen overnight.” SEPIL has been running three community investment initiatives in Erris for the past seven years – a Local Grants Programme, a ThirdLevel Scholarship Programme and a long-term Erris Development Fund (EDF). As Fiona Togher, social investment advisor at SEPIL, explains: “We offer a comprehensive and diverse range of CSR and social investment initiatives involving financial and non-financial support to the voluntary and community sector and also support local business development as part of our overall commitment to sustainable development in the area that we operate in. “The Local Grants Programme provides small scale funding to voluntary and community sector organisations and so far we’ve distributed €1.8m to 136 different organisations. Since 2007, our Third-Level Scholarship Programme has provided 93 scholarships to students in the Erris region to assist them going on to thirdlevel studies around the country. This involved a total investment

In 2010 SEPIL provided €175,000 to the Erris branch of the Irish Wheelchair Association, which helped it to secure funding from a variety of sources to complete its €1m day centre development in Belmullet of €1.1m.” Launched in 2009, the EDF represents a commitment from SEPIL to the region for the life of the Corrib gas project, which is 15–20 years. An initial fund of €5m was allocated for the construction phase. “So far €4.2m has been allocated to 28 capital investment projects. SEPIL’s funding enabled the various organisations to leverage an additional €11m from other sources,” says Togher. “We also deliver a range of proactive community initiatives under the EDF, such as Erris Enterprise Week and a Safe Driving Programme which is run in conjunction with the Road Safety Authority. In addition, we have provided 32 Irish language scholarships which allow students from the area to attend local Irish colleges over the summer.” Frank Fullard, board member of the EDF, notes that Erris Enterprise Week started out three years ago as a one-off but it generated such a level of interest that it has become an annual fixture.

‘Since 2007, our Third-Level Scholarship Programme has provided 93 scholarships to students in the Erris region to assist them going on to third-level studies around the country’ Irish Director Special Report: CSR community

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management, stress management and vision. Crothers says Shell wants to build further on all its CSR initiatives and partnerships to date in Erris, where he has observed that volunteerism plays a central role in the life of the community. “As we move into the operations and production phase of the Corrib gas development in 2015 we want to keep working with the community. The social investment programmes we have run to date have been transformational. It is incredible to see what the people of Erris have done to deliver real value and improve quality of community life here.”

SEPIL’s grant of €400,000 in 2007/2008 allowed the Belmulllet GAA Club to leverage additional funding towards its €1.8m clubhouse and pitch redevelopment project Open to organisations from across Co Mayo, Erris Enterprise Week last October involved a variety of free sessions giving business people access to advice and information on procurement, online trading and future digital opportunities.

Boot camps In addition, entrepreneurial boot camps were held for students of Erris secondary schools in a Dragons’ Den style environment. “The students are divided into teams that compete with one another. They have to come up with a business idea from scratch, develop a business plan and present it to the group. This year we had the help of an EY Entrepreneur of the Year finalist acting as a consultant to the students,” Fullard explains. All in all Shell has committed over €7.4m in funding across its three social investment programmes. Togher says the initiatives demonstrate that the company is committed to the development of the local community. “Stakeholder involvement has been one of the main benefits of these programmes. We have listened to stakeholders in the local area and based our investment programmes on their stated needs and priorities.” Aside from the established CSR programmes, many of Shell’s employees have given of their time and expertise in various fundraising initiatives and education programmes. For example, Shell has worked with Business in the Community Ireland (BITCI) for six years on three BITCI programmes – Skills at Work, Time to Read and Excellence for Teachers. Fania Ellison, regional co-ordinator for the BITCI’s schools’ business partnership, explains: “Shell volunteers go into two secondary schools in the local area and give students an idea of the world of work, talking about what their jobs entail and how they got to where they are. We run seminars on team building, how to write a good CV and what’s involved in an interview. The programme gives students first-hand advice on the world of work and what’s expected of them.” Time to Read involves Shell employees going into second class at primary level once a week for 24 weeks helping pupils to get excited about books and build confidence with their reading, while Excellence for Teachers provides courses and seminars delivered by Shell leaders as well as external trainers on areas such as change

Support from Shell amounting to €170,000 was provided to the Erris No Name Club in 2011, enabling a further €200,000 in additional funding to be accessed for the Páirc Bheo multi-use sports facility

Shell providing 132km of fibre broadband to the State During Erris Enterprise Week 2014 Shell announced that it will provide 132km of high capacity fibre broadband to the State in ducting previously put in place by the Department of Communications, Energy and Natural Resources (DCENR). The ducting runs alongside the Corrib gas pipeline. SEPIL and its partners Statoil and Vermilion Resources will invest €750,000 in the installation of the fibre optic cable, which will support regional development in the west of Ireland. SEPIL has invited bids from expert third-party contractors to carry out the work and expects cable installation to commence early in 2015. When completed, ownership of the fibre optic infrastructure will be passed to the Department, which will then invite tenders from commercial providers to energise the cable and bring high speed broadband connectivity to customers all along the route through counties Mayo and Galway. The new broadband super highway should be available to telecoms operators in 2015, allowing them to connect customers thereafter.

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Wind turbine technology comes

TO THE CLASSROOM German engineering multinational Siemens is partnering to bring an educational module on wind turbine technology to Irish second-level students

Science students from Fingal Community College, Swords at the launch of STA: Science Technology in Action where Siemens unveiled its new wind turbine education module

iemens and AG Education Services recently launched a new educational module on wind turbine technology for Leaving Cert students as part of the Science & Technology in Action (STA) schools programme. STA is produced by AG Education Services in collaboration with Ireland’s leading science and technology organisations, the Department of Education & Skills and the Irish Science Teachers’ Association.

Designed to help students grasp the impact of science and technology in their daily lives, it brings industry and education together in an innovative way by bringing science alive. Its real life case studies engage teachers and students with powerful practical examples from the world of science, technology and engineering. Siemens has shared its expertise to develop a classroom lesson on wind turbine technology, which explores topics such as the rising demand for energy, renewable and non-renewable sources of

‘By equipping young people with crucial knowledge and skills, we pave the way to a better future’ Irish Director Special Report: CSR community

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‘Siemens wants to inspire the next generation of Irish engineers through the promotion of science and engineering’ Chief executive of Siemens Limited Dublin Paul Lynam explains the thinking behind Siemens’ commitment to education: “Contributions to learning and education and co-operations with schools and universities enhance our attractiveness as an employer of choice. “By equipping young people with crucial knowledge and skills, we pave the way to a better future. To this end, we operate a number of corporate social responsibility programmes and engage in partnerships with schools and universities. “We are committed to ensuring that young people have the knowledge and skills they need to succeed in and meet the challenges of a technology-led future.”

Presenting the Siemens Wind Turbine Educational Module to Minister for Education and Skills Jan O’Sullivan are Gary O’Callaghan, Siemens Ltd and Anna Gethings of AG Education energy as well as describing how a generator works. The German multinational has been a major driver of innovation in the wind power industry since 1980 when wind turbine technology was still in its infancy. In existence for more than 165 years, Siemens is active in around 190 regions, occupying leading market and technology positions worldwide with its business activities in the energy, healthcare, industry, and infrastructure and cities sectors. “Siemens wants to inspire the next generation of Irish engineers through the promotion of science and engineering. We are using real life applications such as wind turbines to explain and to get young people enthusiastic about science and technology,” says Gary O’Callaghan head of energy sector at Siemens in Ireland. “We are very happy to provide our expert knowledge to deliver education material to students. I am confident that Siemens and our partners AG Education Services can make a significant difference in this area to make the world of science and engineering available to students in a real and engaging way.”

STA ethos According to Anna Gethings, managing director of AG Education, the fundamental ethos of STA is “to bring our young people and industry together in the classroom”. “Designed to inspire the next generation of engineers, it is available in every second-level school in the country. The approach to engaging with students is centred on applying knowledge in areas such as science, technology engineering and mathematics (Stem) to ‘real life’ projects,” she says. STA is part of Siemens’ general strategy in terms of helping to enrich and enhance teaching and learning around the world.

Siemens educationrelated CSR initiatives Innovative Student Engineer of the Year Siemens promotes the advancement of education and science through the Siemens Young Innovative Engineer of the Year Award in association with Engineers Ireland. This is an annual award open to all IEI accredited degree courses and is aimed at encouraging innovation and excellence in final year undergraduate engineering students. Siemens University College Dublin’s Robo Rugby Competition Robo Rugby is a game where small automonous robots try to score points by moving balls into the scoring areas at each end of the playing table. The Robo Rugby design exercise provides an interesting and enjoyable problem, with plenty of scope for innovation and creative thinking. Siemens Discovery Box Siemens Ireland hosts Discovery Box workshops with primary school children, the purpose of which is to stimulate children’s interest in science and technology in a fun way. It contains a number of child-friendly experiments related to energy, electricity, the environment and health. Language Skills – Sponsored by Siemens The GDI All Ireland Secondary Schools German Debating Competition for second-level pupils is organised by the Goethe-Institut Ireland. The purpose of the competition is to give the students an opportunity to use German language skills beyond the confines of the classroom and examinations, to develop confidence, teamwork and debating skills.

Special Report: CSR community Irish Director

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CSR campaign

AN POST TAKING STEPS to address adult literacy

An Post is sponsor of the nationwide National Adult Literacy Agency television campaign since September 2007 and according to adult literacy tutors, it has successfully changed attitudes

n Post is sponsor of the nationwide National Adult Literacy Agency (Nala), television campaign since September 2007. During that time the literacy service has recorded over

a beat.” Liz grew up in a busy household. She was third eldest of seven sisters and three brothers. Her parents had a farm so there was always work to do.

20,000 calls and texts to its free helpline. The 40pc increase

Like many people with poor literacy skills, Liz left school in the mid-1960s

in people attending adult literacy courses between 2007 and

when she was only 12. Classes were very large back then and she feels that she

2014 to 55,000 represents a huge impact for An Post, Nala and the public.

“just got left behind”.

Adult literacy tutors nationwide confirm that the adverts successfully change

She worked for 24 years in a local factory, starting as a packer and working

attitudes, citing them as a great medium for removing stigma from students

her way up to supervisor. But while she had the ability and experience to go

seeking help while ‘normalising’ the issue of literacy among the general public.

further in her career she couldn’t go for promotions.

Adults calling the Nala helpline report that the advertising campaign gives them a strong call to action to ‘take the first step’ using the helpline number. They also feel relieved to know others have a similar problem and that help is available.

“Other staff told me I could do management jobs but I couldn’t put pen to paper,” she recalls. When the factory closed and she saw the An Post sponsored advertisement on television she rang the Nala number.

The nationwide television ad campaign is presented by Nala both in Europe

“1800 20 20 65. I still know the number off by heart. I thought about it for a

and internationally as best practice in raising awareness of adult literacy

long time and I remember being in my sitting room, seeing that ad, shaking and

services.

thinking ‘will I ring that number?’” says Liz.

The impact for An Post’s business and on An Post customers is shown in

“Thankfully I did. I started in one-to-one classes with my tutor and she was

Millward Brown research (October, 2014). As a result of the watching the advert,

brilliant. After about two terms she encouraged me to join a class. I was worried

58pc of customers are a lot more favourable towards An Post, 65pc of customers

about who I was going to meet and I was thinking ‘they won’t be as bad as me’

are more likely to use An Post and 82pc of customers are more aware of literacy

but it worked out great. It’s given me more confidence and we have a good laugh

issues.

together too.”

“For me it’s more than just learning to read and write,” says literacy student Liz from Co Wicklow. “I can see the signs, the things people do to avoid a situation, like filling out

Liz has never looked back, earning Fetac awards at level two, three and four with her local Adult Learning Centre. This year she will be concentrating on learning IT skills.

a form, because I’ve been there. I always had an excuse. If I was handed a form I’d say ‘I don’t have my glasses, I’ll get back to you’. But my heart used to skip

‘I started in one-to-one classes with my tutor and she was brilliant. After about two terms she encouraged me to join a class’ Irish Director Special Report: CSR community

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senior appointments

in association with

Changing places Conor O’Kelly, chief executive, NTMA Conor O’Kelly takes up the role of chief executive of the National Treasury Management Agency (NTMA) on 4 January 2015. O’Kelly takes over from John Corrigan, who is retiring. Minister for Finance Michael Noonan made the appointment following an “extensive search process” carried out on his behalf by the NTMA advisory committee, chaired by Willie Walsh. O’Kelly is deputy chairman of Investec Holdings (Ireland) Ltd and former chief executive of NCB Group. In 2003 he negotiated and led a management buyout of NCB, which was subsequently sold to Investec plc. Before joining NCB, where he was also head of fixed income, O’Kelly held senior management positions in investment banking with Barclays Capital in London, Tokyo and New York. Nóirin O’Sullivan, Garda commissioner Having served as acting commissioner since March 2014, Nóirin O’Sullivan was appointed Garda commissioner at the end of November. O’Sullivan was the sole candidate recommended for appointment following an open selection process carried out by a special high-level selection committee established by the Public Appointment Service. O’Sullivan joined the Garda Síochána in 1981, was made sergeant in 1992, inspector in 1997, superintendent in 2000, chief superintendent in 2003, assistant commissioner in 2007 and deputy commissioner in 2011. Her qualifications include

a BA in police management, an MBS and advanced management diploma from UCD Michael Smurfit Business School and an executive education programme in driving government performance from Harvard University. She is a fellow of the Chartered Institute of Personnel Development. Eoin Vaughan, managing director, Holdings

Mercury

Smurfit Kappa Group CEO Gary McGann has been appointed to the board of Paddy Power as an independent non-executive director and member of the audit committee. McGann has been group chief executive officer of Smurfit Kappa since 2002, having joined the company as chief financial officer in 1998. Prior to this, he was CEO of Aer Lingus and CEO of Gilbeys of Ireland. He is currently chairman of Aon Ireland and a non-executive director of Green Reit plc. Brian McKiernan, CEO designate, Davy

Eoin Vaughan Mercury Holdings has appointed Eoin Vaughan as managing director. Vaughan has worked in Mercury for 10 years and has held a number of senior management roles in both the domestic and international business units. His primary qualification is in mechanical engineering from CIT. He has a post graduate diploma in project management from UL, an MBA from the University of Manchester and recently completed a leadership programme in Harvard Business School. Before joining Mercury, he worked with Project Management Group and Diamond Engineering in various construction management related roles. Gary McGann, non-executive director, Paddy Power

Brian McKiernan is to take over as CEO of Davy in March when Tony Garry steps down from the role. McKiernan currently heads up Davy’s wealth and asset management business. A member of the senior executive team at Davy and a board member of J&E

Davy, McKiernan joined the firm in 1989 and was appointed managing director of Davy Private Clients in 2001. He has 25 years’ investment management experience, is an engineering graduate of University College Dublin and qualified as a chartered accountant with Arthur Andersen. Richard Moat, CEO, Eircom Richard Moat has been appointed CEO of Eircom, having been acting CEO of the company since Herb Hribar stepped down at the end of September. Moat had been chief financial officer and an executive director of the company since September 2012. He has over 20 years of international experience, having spent 10 years as CEO of a number of telecoms businesses, most recently leading T-Mobile UK as its managing director, before becoming deputy

Brian McKiernan

Irish Director Winter 2014/2015

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senior appointments

in association with

chief executive and CFO of Everything Everywhere. He is a non-executive director of International Personal Finance plc.

until 2005 and permanent secretary of the Northern Ireland Department of Regional Development from 2006 to 2007.

Gerry McGinn, non-executive director, Capita Asset Services

Nina Arwitz,

Gerry McGinn Capita Asset Services has appointed Gerry McGinn as a non-executive director. McGinn has held a number of senior executive positions in financial services and the Northern Ireland Civil Service. He is currently chairman of the Strategic Investment Board Northern Ireland and has been on the board of Invest Northern Ireland since 2008. Earlier this year he stepped down as managing director of First Trust Bank where he led the restructuring of the bank and its restoration to profitability. Prior to this he was chief executive of Irish Nationwide Building Society from June 2009 to September 2011. Overall he has over 29 years’ experience in financial services in London, Dublin and Belfast, including senior executive roles in Bank of Ireland UK, Bank of Ireland Corporate and International Banking and Goodbody Stockbrokers. He was also permanent secretary of the Northern Ireland Department of Education from 2001

chief executive Volunteer Ireland

officer,

Nina Arwitz has joined Volunteer Ireland as chief executive officer. She was most recently programme manager at UK-based international animal welfare organisation The Brooke, where she set up new country programmes, most recently in Nicaragua. Prior to that, she designed and managed a portfolio of national social inclusion projects as director of campaigns and engagement at the Campaign for National Parks in the UK. She has also worked in a diverse range of roles with the London Wildlife Trust, Growing Sustainable Peace and Unicef.

David Mitchell January. For 10 years before that, she was commissioner at Revenue Commissioners having previously spent six years as assistant secretary. She had previous roles at various grades in the Department of Social Protection, including personnel officer and press and information officer. She has also served as chair of the 179-nation World Customs Organisation and as chair of the OECD Forum on Tax Administration. David Mitchell,

Nina Arwitz

chairman, Perigord Premedia

Josephine Feehily, chairperson designate, Independent Policing Authority

Perigord Premedia has appointed David Mitchell as its non-executive chairman. Mitchell founded Astron, a provider of document management solutions and associated business process outsourcing services in 1996, following a management buyout of three printrelated businesses. He oversaw the growth of this business leading to its sale

The outgoing chairman of the Revenue Commissioners Josephine Feehily has been appointed chairperson designate of the new Independent Policing Authority. Feehily has been chairman of the Revenue Commissioners since March 2008 and will complete that posting in

to RR Donnelley, the world’s largest print group in 2005 for US$1bn. Mitchell is also currently a director of UK venture capital firm 24 Haymarket Limited. Moya Doherty,

chair, RTÉ Moya Doherty has been appointed chair of the RTÉ board by Minister for Communications, Energy and Natural Resources Alex White. Doherty’s career includes theatre, radio and television production and presentation, both in Ireland and internationally. She fronted a number of RTÉ arts, features and documentary programmes and, as executive producer, produced a number of charity telethons, the Eurovision Song Contest and the televising of the opening ceremony of the Special Olympics held in Ireland in 2003. Doherty Winter 2014/2015 Irish Director

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senior appointments

was the commissioning producer and originator of Riverdance for the Eurovision Song Contest of 1994. She is a founding director of Tyrone Productions and was founding director of the radio station Today FM. In the past 10 years she has been a member of a number of arts-related boards, including chair of the Dublin International Theatre Festival for seven years; The Ark children’s theatre in Dublin; Walnut Hill Arts School in Massachusetts; and Business to Arts. She is a board member of the Abbey Theatre. She has won the Veuve Clicquot Business Woman of the Year; the Ernst & Young Entrepreneur of the Year Award and honorary doctorates from the University of Ulster and the National University of Ireland. Minister White also appointed Frank Hannigan, Deborah Kelleher, PJ Matthews and Anne O’Leary to the board or RTÉ, while Fergus Armstrong was reappointed. In addition, the recently elected RTÉ staff representative Aengus MacGrianna was appointed by Government. Mo Flynn,

chief executive, Rehab Rehab has appointed Mo Flynn as chief executive. Flynn, who has been chief executive of Our Lady’s Hospice and Care Services in Harold’s Cross and Blackrock in Dublin for the last eight years, previously held a range of senior management posts in health and community services in Ireland, the UK and Australia, including HSE national manager for older people. She currently serves on the boards of CORU, the regulator for health and social care professionals;

in association with

the Irish Gerontological Society; and is a council member of the International Association of Geriatrics and Gerontology.

Nóirín Ní Laocha Nóirín Ní Laocha,

chief executive BuyAndSell.ie

officer,

Nóirín Ní Laocha has been appointed chief executive officer of BuyAndSell.ie. In the role, Ní Laocha will be responsible for the strategic development and oversight of the company as it re-launches as a digital only platform. A business graduate from NUIG, Ní Laocha has a master’s in business studies from UCD and a postgraduate qualification in digital marketing from DCU. She has experience in strategic management and marketing, most recently as head of echannels at KBC Bank Ireland where she was responsible for developing the strategy and delivering the commercial performance of the bank’s digital channels. Prior to that she held a number of marketing roles in KBC, including senior manager for brand and marketing communications. She has also worked in a variety of marketing and customer experience roles for Bank of Ireland, Superquinn and Paddy Power. She is currently a board member of the Irish Internet Association.

Marguerite Sayers Marguerite Sayers,

managing Networks

director,

ESB

Marguerite Sayers has been appointed managing director of ESB Networks. Sayers is a UCC electrical engineering graduate with 23 years’ experience in ESB working in various technical and managerial positions. Previous roles included customer service manager for Dublin South and head of asset management for ESB Networks. In her most recent role, she was responsible for ESB’s 5,500MW generation portfolio in Ireland and the UK. She is a member of Engineers Ireland’s council and executive and a member of the National Paediatric Hospital Development Board.

currently head of distribution and customer services in ESB Networks Ltd, has almost 30 years’ experience in all aspects of the power industry. He previously held a number of senior positions in the company, including station manager at both Great Island and Moneypoint generation stations, asset manager power generation, programme manager corporate change and managing director of ESB ecars. He has a degree in

Paul Mulvaney,

head of innovation, Networks

ESB

Paul Mulvaney has been appointed ESB Networks’ head of innovation. Mulvaney,

Paul Mulvaney

Irish Director Winter 2014/2015

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senior appointments

in association with

mechanical engineering and has completed the advanced management programme at the IESE Business School in Barcelona.

Jackie Gilmore, director, MERC Partners

Emmet O’Neill,

chief executive Topaz

designate,

Emmet O’Neill has been appointed to take over as chief executive of Topaz from Sean Corkery on 1 February 2015. O’Neill founded Smiles Dental in 2005 and grew the company into one of the largest providers of general and specialist dental services in Ireland and the UK with 78 branches before selling it earlier this year. In March he was appointed to the board of Topaz and he has led a number of projects at the company in recent months. Michael Stone,

president, CIF Michael Stone has been elected president of the Construction Industry Federation (CIF) and will serve in the position for the next two years. Stone is the founder and CEO of engineering contractor Designer Group, which operates throughout Ireland and the UK. Key projects he has been involved in include the new Diageo brewery in St. James’

Michael Stone

Gate, the redevelopment of Clery’s Department Store, the Olympic International Broadcast Centre for the 2012 Games in London and the redevelopment of the Adelphi Building in London, as well as works on the Mater Hospital, UCD, Trinity College and the GPO. Before founding Designer Group in 1992, he had an extensive career with the ESB. During his time in the CIF he has also served as president of the Electrical Contractors’ Association (ECA) and the Mechanical Engineering & Building Services Contractors Association (MEBSCA).

MERC Partners has appointed Jackie Gilmore as a director. Gilmore has 16 years of commercial industry experience across several sectors, including technology, financial services and telecommunications. Before joining MERC Partners, she was head of indirect consumer business and financial services

at Telefónica O2 Ireland. Previous roles include head of strategy marketing and business development at F&C Investments, head of product development at EBS, and product development and distribution at Bank of Ireland. She has an MA from Heriot-Watt University in interpreting and translation and an MBA from UCD Smurfit Graduate Business School.

Jackie Gilmore

Winter 2014/2015 Irish Director

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networking

IoD Christmas Lunch The IoD Christmas Lunch took place on Friday, 12 December in the Shelbourne Hotel, St Stephenâ&#x20AC;&#x2122;s Green, and was sponsored by Diligent. Approximately 400 IoD members and their guests were in attendance, with comedian Barry Murphy providing entertainment. The highlight of the afternoon was the charity raffle and auction, which raised the highest amount to date. The beneficiaries of the raffle and auction this year are the Peter McVerry Trust and St Francis Hospice, Blanchardstown.

Ben Bourne, Magda Borcal and Charlie Horrell, Diligent

Patrick Cosgrove and Ray McKenna

Dermot Gorman and Peter Hughes

Helen McGardle, Patricia Kenny and Seamus McGardle

Irish Director Winter 2014/2015

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networking

Comedian Barry Murphy; Charlie Horrell, managing director, Diligent; Maura Quinn, CEO, IoD Ireland; and Liam Daniel, president, IoD Ireland

Lisa Gough and Geraldine Nee

Yvonne McNulty and Valerie Rice

Mark Bradley and Marc Westlake Winter 2014/2015 Irish Director

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highlights

HIGHLIGHTS WINTER Olympia Theatre. The production, which also features Leona Allen in her first major professional role, will be directed by Sean Foley, with set and costumes designed by Alice Power and lighting designed by Paul Keogan. Walsh is a multi-awardwinning Irish playwright. His work has been translated into over 20 languages and has been performed internationally since 1998. www.olympia.ie

Writer/theatre director Amir Zuabi from Palestine – panellist and contributor to discussion on ‘Global artistic response to conflict and war’ – courtesy of Abbey Theatre

THEATRE The Theatre of War Symposium Following the success of The Theatre of Memory Symposium in 2014, the Abbey Theatre is presenting The Theatre of War Symposium. Taking place from 22–24 January 2015, this three-day symposium will be a unique gathering of artists, journalists and academics discussing the world’s most troubling conflicts from a global, contemporary and historical perspective. Theatre artists have been invited from Burundi, Columbia, Syria, Palestine, Rwanda, Ireland and the UK to discuss the challenges of artists responding to conflict. Speakers include Iman Aoun, Hope Azeda, Marina Carr, Ruwanthie de Chickera, Patrick Cockburn, Conall Morrison and Naomi Wallace. www.abbeytheatre.ie The Walworth Farce Brendan Gleeson, Brian Gleeson and Domhnall Gleeson star for the first time together on stage in a major new production of Enda Walsh’s play The Walworth Farce. Presented by Landmark Productions in association with MCD, this is a strictly limited four-week run from 10 January to 8 February 2015 in Dublin’s

The Caretaker With previews from 5 February and opening night on 10 February, this production of The Caretaker builds on the long established and close relationship between Harold Pinter and the Gate Theatre. It was the first of Pinter’s plays to bring him recognition and artistic success and it explores relationships and the struggle for power using comedy and tragedy to create a play that elicits complex reactions in the audience. The Caretaker is widely considered to be a modern masterpiece. www.gatetheatre.ie

Brian, Brendan and Domhnall Gleeson, who will feature in The Walworth Farce – courtesy of Olympia Theatre/ Mission PR

BALLET Giselle and The Nutcracker Following a silver anniversary tour, Moscow City Ballet comes to the Bord Gáis Energy Theatre with its production

Harold Pinter, author of The Caretaker – courtesy of Gate Theatre

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highlights

of Giselle on 26 and 27 January. Moscow City Ballet’s repertoire combines artistry, technique, narrative and live music to provide productions of ‘big story’ Russian dance. Meanwhile, The Nutcracker takes place from 28 to 31 January. The timeless classic is complete with stunning costumes, sumptuous sets and Tchaikovsky’s masterpiece score. The ballet tells the story of Clara’s magical adventure with her Nutcracker Prince, including a visit to the Land of Sweets and the Sugar Plum Fairy. Founded in 1988 by Victor Smirnov-Golovanov, Moscow City Ballet remains in the hands of his wife Ludmila Neroubashchenko, who has been leading the ballet company for the last few years. www.grandcanaltheatre.ie

DANCE Stomp Following a sell out season in 2011, Stomp returns to Dublin to the Bord Gáis Energy Theatre from 17–21 February 2015. Stomp has become a global phenomenon over the last 23 years. Its universal language of rhythm, theatre, comedy and dance has resonated with audiences throughout the world, setting feet stamping, fingers drumming and adrenalin rushing for over 15 million people in 53 countries across five continents. Eight performers use non-traditional instruments – everything from supermarket trolleys to Zippo lighters, plastic bags to garbage can lids, and even the kitchen sink – to hammer out a rhythm. It is a show that continues to evolve, with new music and choreography joining a fresh array of ordinarily mundane objects onto which the cast work their musical magic. www.grandcanaltheatre.ie

presentation. This is the first time that they have worked together in this way, presenting a combination of objects and artworks as one single exhibition. Trove represents a unique opportunity for people to see works from both Ireland’s art and objectbased national collections together for the first time. By the inclusion of works rarely seen by the public, Trove also celebrates and rediscovers many of the hidden treasures of the collections, revealing much about the country’s identity through the objects it have chosen to collect. www.imma.ie Man on Bridge Gallery of Photography in Dublin’s Poster on display at World War Ireland: Temple Bar is currently presenting Exploiring the Irish experience exhibition – an exhibition celebrating the work of courtesy of National Library legendary Dublin street photographer Arthur Fields until 8 January. Fields O’Connell Bridge and O’Connell St from took photos of normal people throughout the 1930s to the 1980s. This installation his long career but no negatives survive. includes a massive billboard type display The Man on Bridge project has gathered a of every image so far contributed to the collection of photographs taken on Dublin’s

VISUAL ARTS Trove Taking place until 8 March 2015, the Irish Museum of Modern Art (Imma) has invited internationally renowned artist Dorothy Cross to select an exhibition of work from the collections Imma, Crawford Art Gallery, National Gallery of Ireland and the National Museum of Ireland. The resulting exhibition Trove showcases the depth of the national collections in one unique and very subjective

Johannes Vermeer (1632-1675) Woman Writing a Letter, with her Maid, c1670 Photo © National Gallery of Ireland Winter 2014/2015 Irish Director

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highlights

Man on Bridge archive – giving visitors the chance to see in one sweep over 3,400 images spanning 50 years of Dublin street life and style. The Man on Bridge project is an ongoing photo collection campaign and people can add their own photo by visiting www.manonbridge.ie. www.galleryofphotography.ie Lines of Vision: Irish Writers at the National Gallery To celebrate the 150th anniversary of the National Gallery, 56 contemporary Irish writers have contributed new poems, essays and stories to Lines of Vision: Irish Writers on Art (published by Thames and Hudson; edited by Janet McLean, Curator of European Art, 1850-1950). Each writer has selected a picture from the collection and used it as a setting off point to explore ideas about art, love, loss, family, dreams, memory, places and privacy. Perceptive and, at times, deeply personal, their words invite us to look at art in new lights and from different angles. This exhibition features the pictures that inspired them. www.nationalgallery.ie

line-up of musicians from Ireland and abroad to perform on an Irish stage, including a rare performance by 1970s minimalist composer Philip Glass when he plays his 20 Études, the final four of which were commissioned in celebration of his 75th birthday in 2012. Also included is highly acclaimed Lambchop with Choice Music Prize winner Adrian Crowley as guest; a special jazz weekend featuring the Tomasz Stanko Quartet and Sue Rynhart Duo; and The Bad Plus performing the Ornette Coleman Masterpiece Science Fiction with Ron Miles, Tim Berne and Sam Newsome and special guest OKO. The series kicks off on 21 January 2015 with Chris Thile’s Punch Brothers and special guests Caoimhin O’Raghallaigh and Dan Trueman’s Laghdú. www.nch.ie

OPERA Salome Northern Ireland Opera returns to the Grand Opera House with a new production of Richard Strauss’ notorious opera Salome. Based on the play by Oscar Wilde, the opera is about the princess who dances for Herod in return for the most shocking of rewards – the head of John the Baptist. The combination of this famous biblical story, the eroticism of Salome’s famous Dance of the Seven Veils and the blood thirsty denouement initially caused the opera to be banned, but it is now a well established part of the operatic repertoire. The new production s designed by Annemarie Woods. It runs from 6 to 8 February 2015. www.goh.co.uk

World War Ireland: Exploring the Irish Experience In summer 1914 a war broke out in Europe that would change the world forever. In Ireland, many supported the cause and joined up or travelled to serve in nursing and auxiliary services. Others objected to the war on moral, social or political grounds. By the time the conflict ended in 1918, its impact had been felt through the length and breadth of the country. World War Ireland is a free exhibition at the National Library of Ireland (NLI) that focuses on the unique aspects of the Irish war experience. Launched in November 2014 and running through to 2018, the exhibition draws on the NLI’s collections of letters, diaries, recruiting posters, newspaper reports, cartoons, handbills and leaflets dating from 1914–1918. With original artefacts, first-hand personal accounts and eyewitness testimony, it brings visitors inside the lives of those who experienced World War I. www.nli.ie

MUSIC Perspectives Spring 2015 The National Concert Hall has announced its Perspectives Spring 2015, which features a

Strauss Salome – courtesy of Grand Opera House, Belfast

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Application form for membership There are two categories of membership of the IoD – Full and Associate. Both can avail of all membership benefits and attend all IoD events. Full Member: A person must be a director of a corporation for a minimum of three years or a partner, senior executive or officer of an entity, with three years’ experience as a member of the body that is responsible for the strategic business direction of that entity. The company must be solvent and in existence for at least three years and have a minimum annual turnover or budget of €300,000.

Associate Member: A person must be a director, partner, senior executive or officer of an entity or a sole trader for a minimum period of one year or who reports to a member of the body that is responsible for the strategic business direction of that entity and is interested in the promotion and advancement of good corporate governance.

Please indicate the category you are applying for: Full � Associate � 1. PERSONAL DETAILS OF THE APPLICANT (Please attach your business card if possible)

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I hereby apply for membership of the Institute of Directors in Ireland and agree to be bound by its Memorandum and Articles of Association. I also confirm that: • • •

I do not have any unspent criminal convictions (other than for traffic offences). I have not been restricted from acting as a company director, under s150 of the Companies Act 1990, or disqualified from acting as a company director under s160 Companies Act 1990, as amended or equivalent legislation in other jurisdictions. I have read and understood the code of conduct expected as a member of the Institute of Directors in Ireland. The code can be viewed at www.iodireland.ie/membership or emailed to you on request.

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THAN ANY ANY OTHERevery AIRLINE We connected business SS THAN OTHER AIRLINE in Weavers Court directly to the USA.

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OVER

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CAPE TOWN

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