November/December 2015 www.iod.com Published for members of the Institute of Directors Northern Ireland INSIDE Building Better Businesses Page 7 02-03 Your diary dates 04 Annual Lunch 16-17 NI ranks high in Knowledge Economy Index 18-19 Coping in hard times – Food and Construction 22-25 Roundtable: the creative media 27 Twinterview with BT ‘Futurologist’ 29 Moving the tax goalposts 31 Allow employees to make decisions 33 Can mindfulness help your business? Unbeatable at keeping your calls connected For verification, see vodafone.co.uk/network To enjoy competitive Vodafone business rates call Rainbow Communications today on 0800 012 1420 IoD NORTHERN IRELAND NEWS Diary dates (CPD hours) 2015 November 16 **New member lunch 17 Transforming me, Transforming you (6) 27 **Young Directors Forum December 07 **New member lunch 18 Sporting Lunch 2016 January 20 The Role of the Company Chairman (7) 25 **New member lunch 28 Mindfulness workshop (3) IoD NORTHERN IRELAND NEWS Events Transforming me/ Transforming you 17 November This one day workshop presented by Ann Dargan of Rapid Change Consultancy is aimed at enabling female delegates to understand and deal practically with the hurdles that prevent many from fulfilling their leadership potential. Using the latest research into leadership and gender, the workshop will equip them with the skills, tools and confidence to step into being a leader without having to change who they are. Sporting Lunch 18 December We may be still crying after the Argentina match but we can cheer up for Christmas with a Sporting Lunch where we will enjoy the company of two Ulster Rugby stars - past and present. In conversation with sports journalist Stephen Watson with a prize draw in aid of Mary Peters Trust. February 09 **New Director Boot Camp – Derry (3.5) 11 The Annual Dinner 23 **New member lunch Role of the Company Chairman 20 January Mind Your Own Business workshop 28 January Do you know what a Company Chairman needs to know? The Chairman has a critical influence on a Board’s style, composition, balance and performance so if you aren’t sure about the answer to this question, then the IoD Role of the Company Chairman is essential CPD for you. Find out how mindfulness can profit your business at this half-day workshop facilitated by Frank Liddy of the Belfast Mindfulness Centre. See article on page 33 for more information about mindfulness and business. The one day course will provide practising, newly appointed or soon-to-be Chairs with an opportunity to understand the role and current good practice. The objective is to help board Chairs to lead and create more effective boards that will contribute to the organisation’s success. Our presenter, Francis Bergin, is not only a very experienced presenter, he has also served as a Chairman and non-executive director for a number of private companies and a national charity, and was Chartered Secretary at Unilever plc. “Francis Bergin is a very effective communicator and is really tuned into the job of Chairman. I have continued to find the course documentation very useful.” Peter Morrow, MD Morrow Communications March 11 Women’s Leadership Conference (6) New Directors Boot Camp (Derry) 9 February Our Boot Camp will be held at the North West Science Park. The half day workshops use a masterclass format to provide an introduction to what it means to be a director and why a company needs an effective board. The Annual Dinner 11 February We are delighted to announce the first of our guest speakers for the Annual Dinner. Leo Johnson specialises in making business sense of sustainability, identifying environmental and social megatrends and the risks and opportunities for business leaders. Leo has hosted the BBC World Show “Down to Business” helping scale up BBC World Challenge’s ground-breaking small businesses, including Green Gold in the Colombian jungle and bio-gas from waste in Kenya. He has commented and written guest columns for the BBC, CNN, CNBC, the Financial Times, and Wall Street Journal. A panel of local leaders share their experiences of the ups and downs of the director role, and there is an interactive case study session to make delegates really think about a tricky boardroom situation. An easy introduction to the legal role of the director is provided by an expert from Arthur Cox. Suitable for anyone who is new to the director role or would like a refresher, whose company has not yet established a working board or who is advising new start companies. Sponsored by Arthur Cox September 27 IoD Annual Convention ** free to IoD members Book online at www.iod.com/northernireland If the event you are looking for does not appear online, please telephone the IoD office at 028 9068 3224. Follow IoD Northern Ireland on Twitter @iodni Spot the family resemblance? Yes it is Boris’s brother, Leo! Build your CPD with IoD Advertise with IoD IoD exists to promote high standards of professionalism for business leadership and to provide members with professional development opportunities to retain their Chartered Director status, contribute to CPD points or hours for other professional bodies, and generally to keep you up to date with developments relating to your role as a business leader. CPD hours are indicated (in brackets) in the list of Diary Dates in IoD Northern Ireland News. IoD events also provide valuable opportunities to network with and learn from other business leaders. Flexible and affordable postgraduate study at Ulster ulster.ac.uk/learnyourway from Discounts available Francis Bergin * Regular Boot Camp presenter Lynsey Mallon of Arthur Cox. For information on advertising in IoD Northern Ireland News or IoD sponsorship opportunities, contact Linda Brown on 028 9068 3224 or email linda.brown@iod.com Your files. Your Records. Our Safe Hands. Call 028 90 73 23 33 or visit morgandocumentsecurity.com *Exclusions apply. Terms and conditions apply. 2 — November/December 2015 November/December 2015 — 3 IoD NORTHERN IRELAND NEWS IoD NORTHERN IRELAND NEWS Blowing the whistle Former professional cyclist turned author and multi-award winning sports journalist Paul Kimmage was the guest speaker at this year’s Annual Lunch. In his presentation, Paul talked about his experience of exposing drug taking in professional cycling and how he was ostracised by colleagues rather than praised. He said that if you love something – as he did cycling – then you should want to highlight problems when you see them rather than conspire in a cover-up. Paul encouraged business leaders to create an environment in an organisation that does not penalise employees who ‘blow the whistle’ when they see something wrong going on. It was a fascinating speech by the man, who publicly called out Tour de France winner, Lance Armstrong, on his use of performance enhancing drugs. Chairman’s message donors of prizes for the Charity Draw – KLM, Galgorm Resort & Spa, Translink, 4Beauty Group, Hilton Belfast, Marco Pierre White restaurant at the Park Avenue Hotel, the SSE Arena and Rainbow Communications. The Institute would like to thank our sponsor, Rainbow Communications, and the generous by Paul Terrington, Chairman IoD Northern Ireland Those of us who attended this year’s Annual Lunch enjoyed yet another capacity audience and will have shared the pride of our most recent successful candidates in the IoD Chartered Director Programme. This is a remarkably successful programme and is being increasingly recognised as the gold standard for executive and non-executive director performance and I would urge everyone to give serious consideration to signing-up if you have not already done so. detail, sidesteps the implementation and defers the hard choices until the next crisis. I was also delighted to present an Honorary Life Membership of the Institute to the Chairman of the Irish News, Mr Jim Fitzpatrick. Not only has Jim worked for the same organisation for over half a century, in his time he has seen 10 IoD Directors General and enjoyed – perhaps endured – 17 NI Chairmen… a remarkable feat. If Westminster and the Northern Ireland parties applied the ethos of the Institute of Directors to politics, Westminster would be the investor, with the Northern Ireland Executive implementing policies that would see a return on that investment. Westminster should not seek to play an executive role but should - through good and active governance - ensure that the promises on which the investment is made, are delivered. Groundhog Day Guest speaker Paul Kimmage (left) with Stuart Carson from the event sponsor, Rainbow Communications and IoD NI Chairman Paul Terrington Gary Coburn (left) from Close Brothers, Jayne Gallagher of Legal-Island and Stuart John, Abacus Professional Recruitment Nora Smyth, Chief Executive of CO3, Ruairi de Burca from the British Irish Intergovernmental Secretariat with Jim Fitzpatrick and Dominic Fitzpatrick of the Irish News, and Paul Terrington Dale Guest (left), Bank of Ireland with Carla Tully of AES UK & Ireland, and past IoD NI Chairman Mervyn McCall of MNV Limited 50 years a member! Jim Fitzpatrick FIoD, Chairman of the Irish News, has been made an Honorary Life Member of the IoD in recognition of his achieving 50 years as a member of the Institute. Jim was presented with a letter of congratulations from Director General Simon Walker and his special membership card at the Annual Lunch. Left: Jim Fitzpatrick with Paul Terrington 4 — November/December 2015 Unsurprisingly, the Annual Lunch was something of a Groundhog Day. At the time of last year’s lunch, our politicians were striving to negotiate what was to become the Stormont House Agreement – at this year’s lunch they were struggling to save it. In the interim, the business community and civic society urged them on, emphasised the importance of political stability and the need to deal with important issues, not least implementing the devolution of powers to set a reduced rate of Corporation Tax. In the days before our lunch, I met the Secretary of State. That was shortly after she told the Conservative Party Conference that an agreement between the local political parties had to be concluded by the end of October. That deadline needed to be heard by an audience wider than the Conservative Party Conference and any new agreement cannot be a cobbled together in an 11th hour compromise that ignores the The political business model is broken, but like the rest of the business community, I want to see devolution working. I want a Northern Ireland plc with a vision and investment strategy that delivers real return. An agreement that does no more than prevent the Assembly collapsing and maintain Executive Ministers in role, merely emphasises how broken the model has become. OBR role In the world of the IoD, this would involve the appointment of independent nonexecutive Directors and, in this context, the Secretary of State should call on Robert Chote of the Office of Budget Responsibility to actively extend its remit to NI. The OBR should examine and report on the public finances, consider the costs and implications of welfare reform and help determine how best to put Northern Ireland’s finances on a sustainable footing. This is the real world where, when things go wrong in the business, you bring in expert advisors to identify problems and recommend solutions. Business is regularly challenged to speak out on the economy and on public finances but typically our engagement is not with the Executive, but with individual Ministers and is therefore, inherently party political. The political business model is broken, but like the rest of the business community, I want to see devolution working. I want a Northern Ireland plc with a vision and investment strategy that delivers real return. Inviting the OBR to examine the public finances will bring independence and authority to the economic debate. We cannot continue staggering from crisis to crisis. The Government’s challenging approach to welfare and productivity means we must shift our focus from the distribution of dwindling amounts of public money to claimants, the low paid and the disadvantaged. We need the independence of an OBR to help us shift the debate from austerity to prosperity; to identify and deliver on an agenda that is about productivity improvement and wealth creation that can take people out of the traps of unemployment and working tax credits. Search on for next IoD NI Chairman After two and a half successful years under the leadership of Paul Terrington, IoD Northern Ireland is looking for a new Chairperson to succeed him in mid-2016. The post requires someone special who, amongst other strong leadership and influencing skills, can handle the media as well as demonstrating an understanding of Northern Ireland, its politics and its business and civic community. The closing date for applications for the role is 16 November 2015 and CV and a covering letter should be sent to linda.brown@iod.com November/December 2015 — 5 IoD NORTHERN IRELAND NEWS IoD NORTHERN IRELAND NEWS Double achievement for Geraldine Geraldine Gordon CDir DEL skills support for business The Department for Employment and Learning has provided the IoD with an extensive and helpful matrix setting out the various programmes available to help employers bring in new skilled recruits and to train their existing workforce. Congratulations to IoD Northern Ireland Committee member, Geraldine Gordon, who has achieved two significant career milestones. First she gained her Chartered Director qualification and then was awarded Fellowship of the Royal Institution of Chartered Surveyors. governance. I was so impressed with not only the array of subjects covered but the insight through peer interaction of relevant real life business cases that I immediately signed up to sit the Certificate exam. I subsequently enrolled and completed the Diploma course and exam. Having spent many years in the construction sector, Geraldine is currently Managing Director at Gordon Business Consultancy. “I would like to take this opportunity to thank the whole IoD team, in particular Peter Martin, Linda Brown and Colin Coffey for their continued support and for a thoroughly enjoyable and rewarding experience. Talking about the importance to her of continuing professional development, Geraldine explains that she initially attended an IoD accelerated training camp some five to six years ago. “I had no plans to sit any exams but simply wanted to develop my skills in leadership and to gain a better understanding of good corporate The programmes cover Apprenticeships, Assured Skills, graduate recruitment, job advertising, Management & Leadership training, knowledge exchange and even help for those facing redundancy. “I look forward to many years ahead of continued development and training with the IoD, ensuring that I can continue to keep abreast of latest innovations and the challenges of today’s fast moving markets” scheme. You can access the matrix at www.iodni.com/news Information included in the matrix covers the type of skills support that is available, what it covers, any financial support, eligible businesses and contact details for each The IoD mantra is that ‘good Boards make for good businesses’ and IoD Northern Ireland has initiated a campaign to improve the quality of Boards in Northern Ireland. The New Director Boot Camps developed in partnership with NISP Connect and supported by Arthur Cox are the starting point for any individual or company that wants to understand why it is important to have a Board that works properly. During 2016 and going forward, the Institute will offer a series of workshops on what makes an effective Board, including the value of having at least one non-executive Director (NED) on the Board, which is the subject of a research report commissioned by the IoD from Ulster University. The report entitled Exploring the Role of Non-Executive Directors in Firms in Northern Ireland was produced by Caoimhe McGuinness, as part of her MSc in Management & Corporate Governance at Ulster. Caoimhe is now working for Herbert Smith Freehills. The research findings also highlight the importance of NED impact on Boardroom decision making, challenging and monitoring the Board. This is why the NED needs to maintain their independence, and receive all appropriate information from the Directors. The Directors interviewed noted that non-executives should only serve on each board for a certain duration (with some suggesting a five year limit) so as to keep bringing in fresh eyes, new perspectives and new resolve to challenge. It is worth noting however, that the majority of respondents stated that the NEDs had actually helped them greatly by forcing them to arrive at decisions faster, ‘pushing them over the final hurdle’. Credibility NEDs can fill certain knowledge and skills gaps on the board; executive Directors noted the benefit that this brought to their firms. A further benefit of NEDs that arose across the interviews was the ‘mentoring role’ of the non-executive to the executive Directors. It was noted that often the NED acted as a ‘wise counsel’ to the Directors, as well as offering them a ‘shoulder to cry on’ and advice from someone who was internal to the company, but not involved in the operational delivery. Findings from the report, which has been endorsed by BDO and Invest Northern Ireland, will be developed through further research and IoD activity to build better boards. The full report is available at www.iodni.com/news from 12 November 2015. The presence of NEDs on a firm’s board is externally respected and helps enhance the reputation and credibility of a company, which is particularly beneficial when it comes to the matter of sourcing external financing. Benefits of a NED Ken gets scared for charity! Daredevil IoD member, Ken Roulston of NewCMI, has taken on many demanding challenges in aid of good causes. His latest exploit was an airborne wing walk (and an equally impressive 4 stone weight loss!) in aid of the Mark Pollock Trust, Building Better Businesses which aims to fast track a cure for paralysis caused by spinal cord injuries. up in the air and there was little I could do, I got to enjoy it strangely”. Ken wants to pass on a ‘massive thank you’ to everyone who donated towards his £5k target and adds, “It was scary but once I was If you would like to add to the donations, please go to Ken’s JustGiving web page: https://www.justgiving.com/Ken-Roulston3 Ken (centre) gets a briefing before for take-off - sadly no photographs are available of the actual wing walk but there is a video. By 13 minutes in he seems to be enjoying himself! www.youtube.com/watch?v=3ZTXin9BBp4 After conducting in-depth interviews with both executive and non-executive Directors in a number of local companies, Caoimhe points out that every Director and NED interviewed felt that the NED contribution undoubtedly added value to the firm, with most believing the NED role helped improve the firm’s profitability. Key themes have emerged from the study about the role NEDs carry out effectively for the boards they serve on. Strategy formulation was considered to be one of the most important roles that a NED plays in any firm. As the interviews revealed, particularly within SMEs, Directors often get caught up in the day to day management of the company, and so it is easy to see why bringing in an independent outsider who can devote time and resources to developing a strategic plan is considered to be so valuable and beneficial. Caoimhe McGuinness with Gordon Milligan of Translink, who chairs the IoD’s Developing Committee, Laura Jackson of BDO, and Niall Casey from Invest Northern Ireland. IT ’S OUR BUSINESS TO SUPPORT YOURS Tel: 028 9442 9717 6 — November/December 2015 www.robinson-services.com cleaning hygiene laundry security November/December 2015 — 7 IoD NORTHERN IRELAND NEWS IoD NORTHERN IRELAND NEWS Boot camp goes to Craigavon Craigavon Industrial Development Organisation (CIDO) was the location for the recent New Directors Boot Camp. Developed by IoD Northern Ireland with the NI Science Park, the Boot Camp provides an introduction to the role and responsibilities of a director through presentations, a case study and masterclasses with experience board directors. Speakers at the event included Colin Coffey CDir of the RDA Group, NISP Connect’s John Knapton CDir, and Andrew Jennings from Arthur Cox, sponsors of the event. A panel of directors talked to delegates about their experiences of being a director: Helen Kirkpatrick from UTV Media plc and Kingspan plc, Olga Murtagh from Armagh Banbridge Craigavon Council and Paul Vaughan from Reprographic Systems. The work of the IoD NI Committees Energy supply Malone Golf Club The stability of the energy supply – including a long-term strategy for improving the infrastructure for businesses in Northern Ireland - is currently exercising the Business Environment Committee. Check out a recent article for Business First magazine by Committee chairman, Bill Beers, on iodni.com/news Public procurement is another issue of interest and the Committee is engaging with the Finance Minister to discuss members’ concerns about the whole public procurement system. Members’ views on this would be appreciated. FE and business (from left) John Knapton CDir, NISP Connect; Olga Murtagh of Armagh Banbridge Craigavon Council; Helen Kirkpatrick, Non-executive of UTV Media plc; and Andrew Jennings, Arthur Cox (from left) Colin Coffey CDir, RDA Group; Linda Brown, Director of the IoD NI; John Knapton CDir, NISP Connect; Andrew Jennings, Arthur Cox, and Brian Hunter, CEO of CIDO Mary McIvor, Director of Further Education at the Department for Employment & Learning, attended the last Education & Skills Committee meeting and the discussion enabled the Committee to finalise our submission to the Further Education Strategy review. Business leaders discuss growth strategy The Committee is currently working on a joint project with The Prince’s Trust to help address underachievement amongst school leavers. When this project is ready to run, the Committee will be seeking the support of members and their companies to work with local schools. Some of Northern Ireland’s most respected and influential leaders in the private and social enterprise sectors gathered at Riddell Hall in September for the Strategic Leadership Summit, hosted by IoD Northern Ireland and the William J Clinton Leadership Institute. Building Better Boards The Building Better Boards campaign, initiated by the Developing Committee, will be officially launched in November and will include events to increase the skills and knowledge of Boards, and promote the value of having a nonexecutive Director on SME Boards as well as creating a database of potential non-executives with relevant business experience and training. Any member interested in joining the database should apply to the Director for an application form. Sponsored by leading law firm Arthur Cox, the aim of the event was to generate a strategy which will help change leadership culture in Northern Ireland and contribute to shaping the Assembly’s next Programme for Government. The recommendations from the Summit will be published and used to engage with politicians and leaders from the private, public and third sectors. Speakers on the day included Sir John Elvidge from the Carnegie Trust, TUI Aviation Chief Executive Chris Browne and Nicola Millard, BT’s Futurologist. An energetic, interactive element of the half day event was introduced by Sophie Grenville and Harry Lloyd from !WhatIf? Innovation Partners, who introduced real creativity to the workshop sessions. 8 — November/December 2015 This Committee is putting together the Institute’s professional development programme for 2016 and would welcome any suggestions from members. Golf outing Pictured at Riddel Hall are (from left) Professor Patrick Johnston, President and Vice-Chancellor of Queen’s University, Belfast, Anne Clydesdale, Director of the William J Clinton Leadership Institute, Linda Brown, Director of the Institute of Directors Northern Ireland (IoD NI), speaker Tony O’Neill from Dunbia, and Alan Taylor, Managing Partner of leading law firm and event sponsors Arthur Cox The Connecting Committee regularly considers whether some of our regular events need to be ‘refreshed’. Members recently discussed the Annual Golf Outing, which is usually held at Malone. If members have any suggestions for the format, venue or timing of the Outing, the Committee would like to hear from you. For any feedback about the Committees’ work, please email linda.brown@iod.com The Economic Strategy Committee Led by Ian Sheppard from Bank of Ireland, the Economic Strategy Committee’s remit covers those issues that impact on the growth of business. Lobbying work generally relates to the activities of the Department for Enterprise Trade & Investment, Invest Northern Ireland and the Department of Finance & Personnel. The Committee responded, for example, to the Draft Telecommunications Strategy 20152017 published earlier this year. Currently the question of how Northern Ireland can better utilise the funding resources and support from Europe for economic growth and infrastructure investment is one of the topics being discussed by the Committee. Members of this Committee – our largest - regularly meet with senior government officials. David Sterling, Permanent Secretary at the Department of Finance & Personnel joined members at the September meeting to discuss the Northern Ireland Budget situation. At next meeting on 3 December, the DETI Permanent Secretary, Dr Andrew McCormick will be joining us. Any member of the Institute is welcome to attend Committee meetings on an ad hoc basis and should contact the Director, Linda Brown. Ann Shaw, Shaw Farms Ltd Ben Collins, RICS Bill Beers, Beers Engineering Consultancy Brian Hunter Caroline Keenan, ASM Danny McCaughan, Kernel Capital David Malseed David Mills, Aon Eleanor Gill, Erga Strategies Frank Bryan, Executive Coach/Mentor Gerry Lennon, Visit Belfast Glyn Roberts, NIIRTA Gordon Gough, Enterprise NI Ian Sheppard, Bank of Ireland Joanne Stuart, NI Science Park Mark Spence, Maurice Flynn & Sons Michael Bell, NIFDA Michael Murray Nial Douglas Padraig McKenna, VFECTO Ltd Richard Buchanan, IoD Policy Consultant Sean Hogan, STHMS Associates Sean McCready, John Burke & Co Ltd Stuart Faloon, Mercer Ltd Toby McMurray, Tughans The Committee meets once every two months at Riddel Hall and the members of the Committee are: Alan Hanna, Diabetes UK Northern Ireland Alan Whiteside, Belfast International Airport Andrew Walmsley, Eason Holdings plc Ian Sheppard, chairman of the IoD NI Economic Strategy Committee November/December 2015 — 9 IoD NORTHERN IRELAND NEWS IoD NORTHERN IRELAND NEWS MEMBER NEWS PBNI role for Ian Justice Minister David Ford has announced the appointment of Ian Jeffers as one of six new Board Members of the Probation Board for Northern Ireland. Ian is the Chief Executive of the Prince’s Trust in Northern Ireland and is a former IoD NI Committee member and former chair of the Connecting Committee, of which he is still a member. Welcome to our newest members JPR’s CIPR Fellows (from left) Rosemary Allister, Jane Wells, Joris Minne and Chris Harrison Gordon reappointed to SRC board Members on Belfast Met board Gordon Gough has been reappointed to the Governing Body of Southern Regional College. Gordon is Chief Executive of Enterprise Northern Ireland, the membership organisation for the local enterprise agency network in Northern Ireland. Several IoD members are amongst new appointments and reappointments by Employment & Learning Minister, Dr Stephen Farry, to the Governing Body of Belfast Metropolitan College. Welcome to members who have joined the Institute recently and welcome back to some members who have returned to IoD Northern Ireland. Executive Coach and Mentor Frank Bryan and John McGrillen, Chief Executive of Tourism NI, have been reappointed for a second term, while Kay Collins of Goldblatt McGuigan and Jim McCall, NI Trustee on the board of Diabetes UK, are new appointments. NI first for JPR Members appointed to FE Boards Employment & Learning Minister, Dr Stephen Farry, has appointed a number of IoD members to the Boards of Northern Ireland’s further education colleges. Tyrone member joins South West College Seamus McCaffrey has been appointed to the Governing Body of the South West College Board, which has campuses in Cookstown, Dungannon, Enniskillen and Omagh. Seamus is a practising accountant in his own accountancy firm, SP McCaffrey & Co Accountants. He is also a livestock farmer. Gordon Gough Frank Bryan Northern Regional College role for Yvonne Yvonne Mallon has been appointed to the Board of the Northern Regional College. Yvonne has worked in the field of HR for 23 years most recently with B/E Aerospace (UK) Limited. In 2012, she was IoD NI Director of the Year for Corporate Responsibility. JPR, the longest established PR consultancy in Northern Ireland, has achieved a Northern Ireland first with the announcement that Director, Chris Harrison, has been awarded a Fellowship of the Chartered Institute of Public Relations. The company becomes the first consultancy in NI and the only one in the UK to have four CIPR Fellows in its ranks as Chris joins fellow IoD member Jane Wells and colleagues Joris Minne and Rosemary Allister who also hold the honour. CIPR Fellowship is awarded by the Fellowship Nominations Committee in London for outstanding contribution to the CIPR and the public relations industry. Fellowships are given to members who have shown exemplary commitment to the Institute and the Industry, through their professional work and their voluntary work. In 2000, JPR Managing Director, Jane Wells, was the first female practitioner in Northern Ireland to be awarded a Fellowship followed by JPR Senior Consultant, Rosemary Allister in 2006 and JPR Director, Joris Minne in 2012. There are now fifteen CIPR Fellows in Northern Ireland. Jim takes on NED roles Kay Collins As well as his appointment to Belfast Met’s board, Jim McCall has also joined the boards of the Northern Ireland Housing Executive and Northern Ireland Water. Until March this year, Jim was Managing Director of Four Seasons Health Care. Car to Plane… Simple. Book your parking online today belfastcityairport.com Seamus McCaffrey 10 — November/December 2015 Yvonne Mallon Dale Ashford, NI Fire and Rescue Service Kelvin Boyes, Press Eye Ltd Aine Brolly, CPL Northern Ireland Heather Carr, Ten Minutes More Ltd Andrea Cooper, Belfast Metropolitan College John Donaghy, Axon Power & Control Ltd Dane Duffy, Brook Design Hardware Ltd Richard Gray, Carson McDowell LLP Niall Greene, Adult ADHD NI Clare Guinness, Fane Valley Co-operative Society Ltd John Haran, HMC Global Ltd Einna Harrison-Mellon, Shebelle Ltd Ashley Haslett CDir, EPC United Kingdom Plc Roisin Jenkins, MCI Group Niall McCaffrey, ProAptivity Ltd Dawson McConkey, Carson McDowell LLP Sinead McGrath, Carson McDowell LLP John McGrillen, Tourism NI Jennifer Mckeever, Airporter Ltd Carmel McKinney OBE, NI Fire and Rescue Service Toby McMurray, Tughans Iain Miller, HMC Global Ltd Yvonne Mitchell, Out of the Box Consulting Wayne Nickels, Cunningham Coates Stockbrokers Ltd Professor Paddy Nixon, Ulster University Gareth Quinn, Digital DNA Dr Stephen Seawright, AssetIQ Limited Gary Toner, Brook Design Hardware Ltd Dominic Walsh, Hospital Services Ltd Herbie Watterson, Harvey Group Plc Emma Weaver, Adult ADHD NI Leigh Yeaman, Investec Wealth & Investment All new members and any other members who have not attended a New Member Lunch are very welcome to join us at one of these lunches in 2015. See page 2 for dates. For information and to book a place, email iod.northernireland@ iod.com The lunches are sponsored by Director Development Ireland. FOR CHEA OUR PARKPEST IN BOO G ONLINK E Travel on your terms. John McGrillen November/December 2015 — 11 IoD NORTHERN IRELAND NEWS IoD NORTHERN IRELAND NEWS Robinson Services team ‘offload’ worries IoD member, David Robinson, reports on a team building day with a difference for his senior management team at Robinson Services – swapping the worries of the office for the rugby pitch as they headed off to Belfast Harlequins Rugby Club at Deramore Park in Belfast for a session with Offload Rugby. Offload Rugby works with organisations to improve productivity, communication, team work and responsibility, through a combination of fun classroom and pitch sessions alongside motivational talks. Participants are given the opportunity to construct their own fun rugby based games and apply the skills uncovered in these to their workplace. A key member of the team at Offload Rugby is British and Irish Lion, Stephen Ferris, who gained 35 Ireland caps and 106 Ulster caps. Stephen worked with the Robinson Services Team on the day both in the classroom and on the pitch. David says: “We were delighted to tie up with Alasdair and Stephen as they build up their new business and we wish them every success. They provided us with a day out with a difference and the day was a great success for everyone who participated. We now look forward to putting the lessons learnt on the day into practice on our own ‘pitch’ as we seek to grow our business throughout Northern Ireland and beyond. Offload Rugby certainly have a winning lineout in my opinion.” Offload Rugby Offload Rugby was set up by Alasdair McKee, who has worked in development roles with Ulster Rugby as well as having been Head Coach of Ulster Juniors and coaching within the Ulster Club’s under MEMBER COMPANY NEWS MBO at Abbey Bond Lovis Five directors of locally-based Abbey Bond Lovis (ABL) – including IoD members Maurice Boyd and Stephen Carlisle - have acquired the successful insurance brokerage and risk advisory firm in a management buyout, supported by London-based Global Risk Partners Limited (GRP) in a multi-million pound deal. The company was established in Northern Ireland in 2006 and provides private, commercial and corporate insurance to clients across a wide range of clients from the commercial, industrial, professional and charity sectors. Robinson Services staff with Offload Rugby team (front row) 16s and under 17s squads. He is IRFU Level 2 accredited and also an IRFU Tutor and Observer. He is the Head Coach of Grosvenor RFC and has previously been Head Coach of both Enniskillen RFC and Academy RFC. Alasdair set up Offload Rugby in May 2015. Maurice says that “ABL has the largest on-the-ground workforce of any commercial insurance broker in Northern Ireland and we view our employees as our main asset, investing in them by ensuring that we provide bespoke, individual training plans in place for every member.” He adds: “The backing of GRP provides us with the ideal environment to grow with the support of an independent, strongly capitalised partner. We believe that we can produce a viable alternative to some of the established multi-national brokers with our blend of a highly qualified team and local autonomy.” MEMBER COMPANY PROFILE JohnstonCampbell A highly experienced team including Director Ewan Boyle (pictured) helps to achieve the personal and business aspirations of their clients through a flexible service designed to meet and exceed expec-tations. Ewan points out that the firm’s advisors take time to get to know who and what really matters to clients, ensuring they IoD member Rozana Huq has recently published her new book entitled The Psychology of Employee Empowerment. Using several years of interviews with Northern Ireland companies – both employers and employees Rozana examines the complexities of empowering employees, which she feels have been largely underestimated and something that organisations struggle with putting into practice. Dr Rozana Huq The book looks at the concept of empowerment in a new way that combines themes from the disciplines of management and social work, the latter being a domain where empowerment is an important construct. The effective utilisation of human resources is a strategic issue for organisations and the growing trend for downsizing and mergers means that they can no longer maintain the ‘command and control’ approach. Employees are given more responsibility and expected to take decisions. However, simply burdening employees with extra responsibility without empowering them does not deliver results. In her book published by Gower, Rozana offers a ‘practice model’ to help people in management and nonmanagement understand the new roles and behaviours that they need to adopt if empowerment is to become a reality. Independent financial advisors, JohnstonCampbell, have been managing the wealth of a wide range of individuals, businesses and trusts in Northern Ireland for the past forty years. Working across the fields of financial planning, investment management, tax mitigation and pension planning, JohnstonCampbell ensure that clients receive a world-class service - with local knowledge and flair. Rozana publishes on employee empowerment The five directors of Abbey Bond Lovis are (from left) Patrick McMillen, Gary Crabbe, Maurice Boyd, Ken Alderdice and Stephen Carlisle Ewan Boyle provide the best financial advice on issues including tax, managing complicated estates, investment portfolios, cash flow modelling and lifestyle planning. The result, says Ewan, is a well-defined wealth management strategy that is designed to protect, enhance and distribute an individual’s wealth according to their wishes. To contact JohnstonCampbell, phone 028 9022 1010 or email ewanb@johnstoncampbell.com See Rozana’s article on allowing employees to take decisions on page 31 of this issue of IoD Northern Ireland News. Oh yes they are! BDO Northern Ireland employees are showing that accountants aren’t really as boring as they are made out by putting on a production of Aladdin to raise funds for BDO’s charity of the year, the Northern Ireland Children’s Hospice. The pantomime will take place on Saturday 14 November at the MAC in Belfast, and will be directed by James Huish, the distinguished Director of the Belfast School of Performing Arts. IoD member David Meade - a friend of BDO - is also assisting and helping the BDO team. Right: Aladdin cast members with James Huish (left) Director and David Meade (right) 12 — November/December 2015 November/December 2015 — 13 IoD NORTHERN IRELAND NEWS IoD NORTHERN IRELAND NEWS “I think I will stick to the double. That is what I will work towards. I will work on my sculling and my technique and will make sure the boat is as fast as it can be. “Will Fletcher beside me is a really strong, talented athlete and someone I can learn a lot from. I think the possibilities with Will are really exciting. “However, it is all about selection and there could be someone who comes along, possibly my brother, who could bump me out of it. That is the nature of sport and then I would hope to go into the four and get the most out of that.” On his 25-year-old brother, who is emerging as a team leader in GB’s lightweight four, Richard commented: Peter (right) and Richard Chambers with their London Olympics silver medals Countdown to Rio IoD Charity of the Year – Mary Peters Trust JUST a quarter of a second! That was the difference between the winners and runners-up - and how close Richard and Peter Chambers came to winning Olympic gold in London 2012. So near, yet so far... At least they had a silver lining around their necks on the podium, but, next time round at the Games, the rowing brothers from Coleraine are determined to cross the finishing line in front. We are now well into the one-year countdown to Rio 2016. Although there are many gruelling training sessions and important competitions to come before then, excitement is already building amongst Northern Ireland’s Olympic hopefuls, with the Chambers boys ready to lead the charge. Three years ago they shared a boat in the gripping lightweight four final when, along with Chris Bartley and Rob Williams, Team GB were centimetres behind the South African quartet. In Brazil there is every chance that Richard and Peter, bronze medal winners together in the lightweight double at the 2013 World Championships, will be competing in different disciplines. Asked what boat he expects to be in when competing in Rio, Richard said: “My goal is to win gold in Rio. I have an Olympic silver medal and I really want to go one better and will do all I can to make it happen.” Richard Chambers “Peter is doing really well. He’s in good shape in the four. He’s bringing something to that four and is standing out and leading it. He knows what he needs to do to get it on the podium and make it win.” Peter and Joel Cassells secured gold this year in the European Championships in the men’s lightweight pair. This begs the question - does he want to compete in Rio in a four or two-man boat? “It depends on how things go,” Peter added. “I wouldn’t rule either out because we have to do so many trials between now and Rio. I haven’t had much time to think about the Olympics but it will be a massive occasion and very exciting. “There will be a big build up to it and I’m sure it will come around pretty quickly. It was brilliant in London and it would be fantastic to experience it all again. We were close to winning gold in 2012 and the dream would be to go one better in Rio.” The Mary Peters Trust is helping NI athletes like Peter and Richard Chambers on their Road to Rio. PKF-FPM shortlisted for top award Leading island-based accountancy practice PKF-FPM Accountants have been shortlisted by Accountancy Age as one of the top ten firms in its 2015 Best Employer Survey. PKF-FPM is the first Northern Ireland firm to be shortlisted for the annual awards. The 2015 Accountancy Age Best Employer Survey set out to identify and flag up the best accountancy firms to work for in the 14 — November/December 2015 by Stuart Carson, Rainbow Communications As people become more and more technology savvy, events like the annual iPhone update take on greater significance. This was definitely the case at the end of September with the introduction of the iPhone 6S which once again saw record sales across the world and a media frenzy on its new features. With employees updating their smartphones on a regular basis, businesses around the world are finding the number of devices owned by employees being used for work increases rapidly and this could have a significant impact on business. It is believed that by 2016 38% of companies will stop providing devices to employees and by 2018 it is expected that the number of devices owned by employees will be twice as high as those owned by business. Bring your own device (BYOD) refers to the policy of permitting employees to bring personally owned mobile devices (laptops, tablets and smart phones) to the workplace and using these devices to access company information and applications. Many businesses are now leveraging the fact that their employees are using the latest smartphones to their advantage, as they don’t have to provide devices or contracts which is ultimately creating savings for business. Risks of BYOD Along with the obvious advantages of BYOD there are also significant risks which businesses should be aware of. With IT departments not having direct control over employees’ own devices, it means that there is no way to be exactly sure what security measures are in place to ensure sensitive and important company data does not end up in the wrong hands. To ensure information does not end up where it shouldn’t be, it’s imperative that companies put security measures in place. An effective BYOD policy allows the company to better control how information is shared and on what devices. Vodafone, for example, offers a range of Mobile Device Management (MDM) solutions to develop a bespoke and secure mobile strategy for all businesses ensuring the security of information while enabling organisations to stay in control of costs and resources. Mobile manufacturers are also making moves to improve their integration into the business environment. Apple is one of the most popular manufacturers of devices currently used by employees around the world. To deliver better for the business customer, Apple recently announced a partnership with Cisco to optimise Cisco networks for iOS devices and apps, integrating iPhone with Feargal McCormack Cisco enterprise environments; providing high performance connectivity, fast roaming and service assurance while ensuring end-toend security of the enterprise service. Act now Now is the time to act. Does your business have a mobile device management plan for ensuring sensitive information does not end up in the wrong hands? If not, make sure you implement one now to protect your organisation. As more and more employees use their own devices for work purposes, the risks of breaches of data protection are getting higher and higher. Stuart is Sales and Marketing Director at Rainbow Communications. Delta expands to Poland Belfast based Delta Packaging has expanded its international operation with the opening of a new, 10,000 square metre purpose built factory in Gliwice, Poland, which operates under the name European Packaging Solutions. Terry Cross, Chairman of Delta Packaging and a long-standing IoD member, reports that the Gliwice factory will manufacture sustainable, folding carton board packaging products for the retail food, food service, beverage, pet food, confectionery, household goods and electronic consumer product sectors. UK. Shortlisted firms were judged on their working environment, training, remuneration and employee benefits package. The highest ranked practice will be revealed at the British Accountancy Awards ceremony on 24 November in London. IoD member, Feargal McCormack, PKF-FPM Managing Director, said the practice was absolutely delighted to have been shortlisted for the prestigious UK Best Employer Award. Are you protected against employees using their own devices? European Packaging Solutions is a full-service carton packaging plant offering integrated pre-press and CAD functions. The factory has unique rotary flexo printing/in-line rotary die-cutting capability, standard sheet-fed litho lines and Very Large Format (VLF). To provide the flexibility required for scaled volumes, there are litho production capabilities, unique barrier coating capabilities and a broad range of finishing options. Terry Cross of Delta Packaging with Grażyna Henclewska, Poland’s Deputy Minister of Economy The opening of the new facility positions Delta firmly as a global player in the packaging industry and the company aims to grow sales across a number of existing accounts, as well as securing new contracts. In Northern Ireland, Delta operates from a 200,000 square foot factory in West Belfast. November/December 2015 — 15 IoD NORTHERN IRELAND NEWS IoD NORTHERN IRELAND NEWS Good news from Knowledge Economy Index by Dr Joanne Stuart, Northern Ireland Science Park The Knowledge Economy Index Report, published in September contained good news, confirming Northern Ireland as the second fastest growing Knowledge Economy across the UK. MEMBER COMPANY NEWS CCP Gransden wins major research grant Newtownards firm CCP Gransden, led by Managing Director Jim Erskine CDir, has secured a grant of nearly £100,000 under a National Aerospace Technology Exploitation Programme (NATEP) initiative to carry out R&D into innovative aircraft components of the future. NATEP is designed specifically to encourage SMEs to develop new technologies, and help them win new business. It is one of the initiatives to come out of the Aerospace Growth Partnership, a joint Government and Industry alliance, with over 100 new product and manufacturing technologies being created in the supply chain all over the UK. Steve Orr, Director NISP CONNECT, and Arlene Foster, Acting First Minister and Minister for Finance and Personnel at the launch of the KEI Report The report, commissioned by NI Science Park and sponsored by Bank of Ireland UK, showed that our Knowledge Economy makes up 10% of total Gross Value Add. Better still, our Knowledge Economy is export-led, with £17 of every £20 being earned from outside the six counties. Knowledge workers, representing one in ten jobs, are well paid with productivity the highest of all our economic sectors. This evidence underlines the importance of the Knowledge Economy to economic development. A large, diverse Knowledge Economy is the only way to re-balance our - or indeed, any economy in a globalised world and to combat the challenges our more traditional sectors are facing. No doubt our closest competitor for the fastest growing Knowledge Economy, the North East of England, is happy they made the investment, in light of the recent sad news about Redcar Steel. Growing our Knowledge Economy enables us to re-balance our economy towards export-led sectors with higher productivity sustaining highly paid jobs. With every job in the Knowledge Economy creating another job in the wider economy, levels of economic activity are increased, resulting in a broader tax base, generating much needed revenue to fund public services. Competitive advantage In recent times, emerging nations have been able to compete on cost but it is more difficult to compete on the basis of knowledge and this gives NI a comparative advantage. For a long time, we have been punching above our weight in innovation and invention, generating ideas that are world leading. However, we are not seeing enough of these ideas develop into commercial successes or, crucially, scaling up. At the NI Science Park, a growing ecosystem is supporting our ambitious entrepreneurs, start-ups and early stage companies. NISP is successfully connecting NI’s most experienced to expedite NI’s most promising, but to achieve our ambitions to grow the Knowledge Economy we need to significantly increase the level of volunteering and collaboration. We are optimistic about the competiveness of Northern Ireland but we cannot afford to be complacent. The Knowledge Economy has grown by almost half since 2009. In fact, it is arguable that we ourselves are the determining factor for continued growth by our investments and the choices we make, both personal and political. If we do not increase investment in STEAM education, support more PhD’s and challenge businesses to step up and invest more in vital research and development, the gains of the past will slip away. The Knowledge Economy Index Report can be accessed at www.nispconnect.org 16 — November/December 2015 CCP Gransden specialises in composite technologies and thermoplastics, and currently designs, engineers and manufactures equipment for the pharmaceutical, chemical, agri-food industries, as well as for aerospace clients. The 18 month research project will focus on the use of thermoplastic materials for the aerospace industry with a view to reducing processing time; making parts lighter in weight; and making parts easier to install and repair. Celebrating the R&D funding award are clockwise from top Dr Leslie Orr , ADS; Dr Scott King, NIACE Centre; Gavin Campbell, Bombardier Aerospace; Jim Erskine, CCP Gransden; Kevin McCann, Invest NI; and IoD member Robert McConnell, CCP Gransden. Hastings unveils GRAND plans for new hotel Hastings Hotels, Northern Ireland’s leading hotel chain, recently unveiled plans for its latest venture, the new Belfast Grand Central Hotel. IoD member, James McGinn of Hastings Hotels points out that the Belfast Grand Central will be the seventh hotel in the company’s portfolio in Northern Ireland. “This acquisition represents the biggest single investment to date by Hastings Hotels of £30 million and, on completion in 2018, the hotel will operate at the upper end of the 4-star market offering 230 bedrooms, a restaurant and bar, 18 serviced apartments and a range of superbly appointed office accommodation creating over 150 new jobs. “The hotel will be a fantastic complement to the Europa Hotel which is the city’s busiest event hotel. It is fantastic to be able to offer people an additional 230 bedrooms in a convenient city centre location as this is something the city currently needs.” The Hastings family on the site of the new Belfast Grand Central Hotel: Chairman Sir William Hastings (right) with his children and company directors Howard Hastings, Aileen Martin, Allyson McKimm and Julie Hastings The new hotel will be located on the site of the old Windsor House in Bedford Street. ANA Need help driving traffic to your website? Contact us today. the web bureau TIMEBOUND MEA SURA BLE LYSIS TS ESUL ER VABL IE ACH ION www.thewebbureau.com LTAT U S CON Tel 028 9073 1190 November/December 2015 — 17 IoD NORTHERN IRELAND NEWS IoD NORTHERN IRELAND NEWS Surviving challenging times Two of our leading sectors have been particularly hard hit in recent times for different reasons. Construction, we know, has badly affected in the economic downturn, while the Food sector has its challenges in relation to the value of sterling and the prices offered to producers. Here we get some insight from Raymond Millar at Farrans and Michael Bell of the NI Food and Drink Association (NIFDA) on how their sectors are dealing with these tough trading conditions. Diversifying to survive by Michael Bell, NIFDA by Raymond Millar, Farrans Since 2007, Northern Ireland’s construction industry has been the most severely impacted sector in terms of both output and employment. With this struggling back drop it was only inevitable that construction companies would have to diversify by seeking out new, more buoyant and more profitable markets in order to keep their order books full. An estimate by the Construction Employers Federation of the top 20 construction companies headquartered in Northern Ireland indicates that an estimated 90% of their turnover is actually being delivered in Great Britain. Dr Esmond Birnie, PwC’s chief economist in Northern Ireland, said “The impact of the 2007 financial crisis on the local construction industry was considerably worse than in Great Britain; and, while local construction companies have won considerable volumes of new work in Great Britain, the current level of output in Northern Ireland alone remains around 40% below the level experienced pre-2007”. to operate in, so that you can recruit the people that understand how to operate in them beforehand. Probably the most common and most effective way to expand into new regions is to team up with other, probably bigger, contractors. Being part of a joint venture and only bringing your knowledge and service to a project instead of building up the whole infrastructure and administration and providing the necessary, financial, assets offers chances for companies to look across their borders. Challenge of new markets NI contractors have turned to Great Britain in order to better spread their business and risks and to avoid being highly affected by the local economic downturn. Whereas the local market is still important, it is difficult to see where the volume of work required to bring the industry back to the pre-2007 Expanding into new regions is challenging as each geographical market behaves differently, and local knowledge of clients, suppliers and industry is critical. Consider in advance the new markets that you want Construction skills shortage for the NI construction industry is a major concern as the overall number currently employed is just over 60,000 compared to about 86,000 people in 2007; this is a significant loss of jobs. We need to be encouraging more young people into the industry but with the limited local employment opportunities this is challenging to say the least. Rebuilding at home Completed Farrans project for Clock View Hospital, Liverpool 18 — November/December 2015 Food and Drink: Challenging but Exciting Raymond Millar levels is to come from. Having established themselves in new regions and sectors will there be a desire for contractors to expose their business to the uncertainly of the NI market in the long term? Public sector procurement plays a vital element in supporting the construction sector in Northern Ireland; we need the Executive to commit to delivering infrastructure projects that will support the construction sector, improve public services and the NI economy. The current crisis at the Executive has only compounded the issue of an already starved pipeline of opportunities coming to the market. Raymond is a Director with Farrans Construction, a Division of Northstone (NI) Limited. Farrans work at Rabbsfarm Primary School in London Borough of Hillingdon This is a time of great challenge and opportunity for the food and drink industry in Northern Ireland. A major challenge for local companies particularly in recent months - is dealing with market volatility, made even worse by currency fluctuations. When you consider that the average net margin for most food manufacturers is below 3%, and that the euro/sterling exchange rate has moved over 10% in the last nine months, it is evident that these fluctuations have a huge impact on the local industry. major retailers may represent 20-30% of a supplier’s turnover, in many cases, a supplier will be just a tiny fraction of the retailer’s turnover. This is a major imbalance which the GSCOP seeks to address. However whilst the legislation is now in place, suppliers may not actually understand what their rights and obligations are. With the assistance of Invest NI we offered the first ever GSCOP training course in Northern Ireland. Feedback from those attending was extremely positive, and we are already planning further courses in the autumn. Due to intense price competition many of our major retailers have seen a sharp fall in their profits; some even moving into losses. As a result most are now shedding jobs and reducing the number of lines they carry. Food is generally falling in price partially due to weakening commodity markets but also as a result of severe price competition between supermarkets leading to deep discounting. For local food companies wishing to survive and thrive in such a challenging operating environment, there are many hurdles to overcome. Export body A fair environment Whilst NIFDA has no control over currency fluctuations and global commodity markets, we can help ensure that local companies remain as competitive as possible by providing support and guidance where it’s most needed. Our efforts are focused on creating a fair environment for local food and drink manufacturers to do business and giving a strong voice for our 100+ members. As an “industry self-help” group we aim to facilitate the growth and expansion of our members by lobbying government to create a more business friendly environment, encouraging the transfer of best practice and thinking outside the box to develop strategies to address whatever challenges they face. NIFDA recently pioneered training in the Grocery Suppliers Code of Practice (GSCOP) in Northern Ireland. Whilst NIFDA has been lobbying for an exportfocused food and drink marketing body for many years now, looking on in frustration as competing neighbouring regions have gone ahead and developed theirs. This has been a long road with three significant failed attempts along the way. It is vital our Agri-Food community stakeholders support the new body. Whilst we welcome the announcement earlier this year of the creation of a new food and drink marketing body, we would urge government to move ahead quickly and establish a working model as soon as possible if we are to effectively deal with the challenges faced by the industry. We also need to catch up with our competitors who have already forged ahead – such as Scotland who created Scotland Food and Drink in 2007. Given that around 80% of our commercial food and drink income comes from outside Northern Ireland, (some £4bn) the importance of our export market cannot be overstated. Just how effective such a body could be, was demonstrated by NIFDA’s involvement in Access 6, an EU funded INTERREG project which provided training and mentorship to 90 food and drink related SMEs in border regions in Northern Ireland, the Republic of Ireland and Western Scotland. The fact is that many small food companies are export-averse, so this programme directly tackled that by guiding them through the process. We developed an e-learning training package around exports and an online distribution tool enabling companies to plan and cost the transport of goods. The Access 6 project, which involved an investment of €2.1m, helped the 90 companies in the programme achieve €23m in export sales growth and a total of 362 new jobs. NIFDA has now published an Access 6 exporting guide for local companies. Enormous potential The potential for the new marketing body to support the growth of our world class Agri-Food industry is enormous, and we look forward to seeing it up and running as soon as possible. With the right support we can ensure that local companies grow faster and contribute towards the ambitious targets set out in the Going for Growth strategy. Next Year we will have a major focus on Local food and Drink. Northern Ireland’s Year of Food and Drink 2016 is a celebration of everything delicious about this place. The epic landscapes, traditions and people that make our food heritage so unique. With 366 days of foodie experiences, there will be no better time for visitors to enjoy a true taste of Northern Ireland. Visit http://www.tourismni. com/BusinessSupport/MajorEvents/ NIYearofFoodandDrink2016 for more information. Michael is Executive Director of the Northern Ireland Food & Drink Association (NIFDA) November/December 2015 — 19 IoD NORTHERN IRELAND NEWS IoD NORTHERN IRELAND NEWS Alternative Finance – Myth or Fact? MEMBER COMPANY NEWS Novosco staff aim for 1m steps per week Staff at IT infrastructure company, Novosco, are striving to take a combined one million steps per week as part of an innovative new wellness programme at the leading technology business, reports Finance Director and IoD member Karen Shearer CDir. Since the credit crunch hit back in 2008, companies have been exhorted to look for alternatives to bank finance to fund their growth. Here Judith Totten of Keys Commercial Finance considers whether Alternative Finance is readily available here. All staff were offered Fitbit devices (normally costing more than £100 each) and 65 of them are currently competing in an activity league table as a result, with even more staff currently applying to participate. Fitbits are marketleading fitness devices which can monitor steps, activity levels, heart rate, and other indicators of fitness. They are manufactured by US firm Fitbit Inc. The investment by the company in the devices for its team is the brainchild of Managing Director Patrick McAliskey, who was inspired by similar initiatives at Fortune 500 corporations. A significant part of Novosco’s strategy and culture is ‘wellness’ and staff are encouraged to eat well, stay active, and look after themselves. As part of this activity, the company provides free deliveries of fruit, has a masseuse visit Much is written about Alternative Finance but in Northern Ireland terms does it really exist? In short - yes it does, but you have to go looking and you have to talk to the right people. Patrick McAliskey (centre) with staff members Ellen Dickson, and Lee Glover, who are participating in the initiative their offices, and runs active staff events such as charity walks and cycles, as well as providing free health and dental insurance. Novosco employs some 120 people. It is headquartered in the Northern Ireland Science Park, Belfast and has offices in Dublin and Manchester. The company has appeared in the Sunday Times Best Companies to Work For listing in each of the past three years, and in 2014 appeared in the Deloitte Fast 50 for the 15th year in a row – the only company to be in the prestigious listing every year since it started in 2000. From Asset Based Lending to Invoice Finance to Stock Funding. From Supply Chain to Reverse Factoring and much more. From private investors to crowd funding. From venture capital to private equity. Angel investment even. Plenty of cash There is plenty of cash in the NI market and beyond. The trick is in knowing how to access it and then how to make it work for you. You will kiss a lot of frogs but it is undeniably worth it to underpin your business with a sound capital base which becomes critical as you grow and diversify. With a robust capital position secured, you can then turn to your trading finance needs - to fund your raw materials and stock. You can unlock cash in your debtor book as you offer credit to your buyers and of course you will need to finance any kit, machinery or vehicles you need to operate efficiently. There are funders and investors for all of these needs and more. Locally we have the traditional Banks now welcoming third party alternative funders to the table where historically they would have been reticent to share security - after all, ‘better to have a slice of the cake than no cake at all.’ Banks open for business You will always need your Bank for clearing and trading accounts of course but you can now augment their facilities with more innovative and flexible services. The Banks are definitely open for business again and welcoming new clients but with a more robust and appropriate credit assessment process in place. We are also lucky in NI to have access to institutional funding through the various Invest NI growth, loan and co-funds and there are also various programmes offering support for everything from capital expenditure to marketing and export needs. Certain sectors have been much maligned in recent years but even these ‘non preferred’ industries are now seeing an easing construction and allied trades for example, which is after all, one of the mainstays of the local economy. Typically the traditional funders are reticent to look at Applications for Payment and Stage Payment related contracts but we have successfully funded these areas and opened up new opportunities for several Judith Totten high profile construction and related businesses in the Province. This has become a niche area and we would be delighted to talk through options with any business owner who is fed up kissing those frogs … Spread your eggs So, gone are the days of having all your eggs in one basket. Speak to a professional and well connected Advisor. He or she should take time to understand your business needs then structure a tailored solution which nowadays can incorporate an Asset Based lender, an Institutional or private investor, a Bank and maybe even a Mezzanine line for a specific transaction. There is a wealth of choice out there - you just need to know how to avail of it. That way, ‘Alternative Finance’ swiftly becomes ‘Traditional Finance’. Try it! You won’t be disappointed … Judith Totten is Managing Director, Keys Commercial Finance Ltd. Contact her on 028 9066 0791. New Funding Guide A new guide to funding for SMEs has been produced recently by Carson McDowell and the Ulster University Business School’s SME Centre. The guide highlights the comprehensive range of funding options available to SMEs and how to access them. Car to Plane… Simple. Book your parking online today belfastcityairport.com 20 — November/December 2015 Belfast George Best Add-8th June 2015-Final-AW.indd 1 08/06/2015 13:20 You can access the guide free of charge at the Ulster University or Carson McDowell websites or at www.iodni.com/news FOR CHEA OUR PARKPEST IN BOO G ONLINK E Travel on your terms. November/December 2015 — 21 IoD NORTHERN IRELAND NEWS IoD NORTHERN IRELAND NEWS Invest NI is also starting to realise they don’t know all the answers and they’re giving NI Screen the freedom to go and do what they do. It feels like we can’t do anything wrong at the moment in this business. Colin Williams (Creative Director, Sixteen South) In conversation with the Media and Film Industry Leading business advisory firm, Grant Thornton, has partnered with the IoD to host a series of roundtable discussions exploring the opportunities and challenges faced by local businesses. In the third roundtable, John Gleeson, Grant Thornton’s Head of Media and Entertainment, was joined by industry leaders at the firm’s Belfast office to discuss activity within the Media sector. Participants included Mark Huffam, Producer with Generator Entertainment; Colin Williams, Creative Director of Sixteen South; Kevin Jackson, an independent film and TV producer with Big Fish NI; and Grainne McGuinness, Managing Director of Paper Owl Films. JG: What are the main strengths of the indigenous film and TV production industry in Northern Ireland? John Gleeson (Head of Media and Entertainment, Grant Thornton) 22 — November/December 2015 MH: The strength here is size - the industry isn’t enormous so you can actually get to speak to the people you want to speak to. We also have a government which is completely behind the industry and we have Northern Ireland Screen which, while we may all have our moans and gripes, is the best screen agency in the world. Invest NI supports them so you have a very focused public sector on what is a private sector industry. On top of that we have the advantages of the UK tax credit and of NI Screen funding. We also have probably the best city in the world in terms of location. Within 40 minutes in different directions, you have the most amazing variety of locations. is our common language. As English speakers we have access to a great number of people around the world who would prefer to be working in the English language because there is more money to be made. One could always dub, subtitle or reformat shows, but initially it’s a very popular language to be able to converse in, not just in business terms, but also when you’re looking at the end product. That is key. We’ve learnt to be part of the world and the world of broadcasting, film and television making has learnt to trust us. GM: I would echo that sentiment about the location and about NI Screen. In terms of putting together a co-production in another territory, which is what we’re doing for our show, our co-producer is only an hour and three quarters down the road and it just makes things so much easier. I would particularly echo the sentiment about NI Screen. It is really pushing to develop the industry here and there are a few very smart people who have put things in place to CW: I’ve been doing what I’ve been doing for seven years and the change during that time has been immense. It feels like the industry is coming of age in this part of the world and I think that’s a combination of lots of things. I agree that government is really behind what we’re doing. I think they’re also willing to learn and listen and don’t feel as if they know all the answers. Invest NI is also starting to realise they don’t know all the answers and they’re giving NI Screen the freedom to go and do what they do. It feels like we can’t do anything wrong at the moment in this business. It’s not completely perfect but I think it’s never been better. KJ: I also believe that one of our strengths make sure we’re all looking internationally. That’s not just with regards to funding, it’s also about providing expertise and introducing the right people. Colin Williams (Creative Director, Sixteen South) JG: What are the areas which need more support and development to help grow and strengthen our industry? which is going to be an effort to introduce you to practical media, it would be a terrific advantage. GM: One thing that has long been identified is that, while there’s a great talent pool, it’s very thin and there could be a lot more. If there were two big productions going on at once, what happens? Therefore, I’d like to see more grassroots talent being developed. CW: There are probably different needs and wants in the different sectors of the same business. In terms of live action it’s clear that there are more people than ever working in high end production, but whether they’re working at the right levels is another question. There isn’t a huge amount of producers and directors for hire locally and that’s what we’d have to go outside Northern Ireland to look for. We want to make stuff which is going to be the best in the world so we can’t fill those positions with people who aren’t experienced, therefore it’s a Catch 22. Good editors, good producers and good directors - how do you start to train people in those areas? KJ: One of the key things about developing grassroots talent is giving them the opportunity to not only experience the jobs on a regular basis, but also to see that there’s room for growth and development. Training mechanisms are vital. I know that NI Screen and other bodies are trying to assist with training programmes and continuous professional development. However, what we’re lacking is a Beaconsfield. If you had a centre of excellence here where you were teaching skills at a high level, not just something MH: We (in live action) train people very fast, which might be different to Colin’s side of things. The truth is that in two weeks One of the key things about developing grassroots talent is giving them the opportunity to not only experience the jobs on a regular basis, but also to see that there’s room for growth and development. Kevin Jackson (Executive Producer, Big Fish Films NI) Kevin Jackson (Executive Producer, Big Fish Films NI) November/December 2015 — 23 IoD NORTHERN IRELAND NEWS IoD NORTHERN IRELAND NEWS The participants Mark Huffam (Producer, Generator Entertainment) John Gleeson (Partner, Head of Media and Entertainment, Grant Thornton) John joined Grant Thornton in April 2014 as a Partner and heads up the Media and Entertainment Practice. John has over 20 years’ commercial experience in providing financial, strategic and tax advice to individuals and corporates across a broad range of issues. He has particular experience in financing film and television projects, having raised finance and advised on a broad range of transactions including large international television series and animation series for the US market and numerous feature films. Mark Huffam (Producer, Generator Entertainment and Game of Thrones) Award-winning producer Mark Huffam established Generator Entertainment in 2007. He has acted as producer on a number of high grossing Hollywood films including Saving Private Ryan (1998), Prometheus (2012) and World War Z (2013). Mark returned to Northern Ireland in 2008 and his presence and international connections continue to attract many big-budget shoots to the province including the medieval comedy feature Your Highness, and the highly-successful franchise Game of Thrones. Kevin Jackson (Executive Producer, Big Fish Films NI) With 25 years’ experience in broadcast television and feature film production, Kevin Jackson has worked alongside writers and directors including Danny Boyle, Michael Winterbottom, Jimmy McGovern and Alan Clarke. A former Assistant Head of Drama at BBC Northern Ireland, Kevin produced John McIlduff’s awarding-winning debut feature Behold The Lamb in 2011, which has been screened at a number of high-profile film festivals. He now works as an Executive Producer for Big Fish Films. Grainne McGuinness (Managing Director, Paper Owl Films) Grainne McGuinness established Indee Productions in 2012, following five years as producer and director at postproduction company, The Picturehouse. Indee Productions, rebranded as Paper Owl Films in September 2015, gave Grainne the opportunity to produce a wide range of documentaries as well as corporate, commercial and children’s content for TV, film and digital platforms. Paper Owl Films has recently been awarded a major contract with CBeebies to produce the animated series Pablo. Colin Williams (Creative Director, Sixteen South) Colin Williams formed Sixteen South in 2008, following his passion to create influential and relatable children’s television that was worth watching. Sixteen South’s shows include Lily’s Driftwood Bay and Jim Henson’s Pajanimals. As Creative Director of Sixteen South, Colin has won a string of high-profile individual awards, while Sixteen South has won Best Children’s Programme at the BAFTA Scotland in 2011 and were recent finalists for the Best Pre-School Programme BANFF Rookie Awards 2015. 24 — November/December 2015 it’s bringing in a huge amount of foreign investment into the territory. JG: So apart from some kind of training and crewing, is communication in relation to how the industry is doing another area which needs addressed? CW: Yes, and private investment is also far up my wish list because it would help us get things off the ground faster. The truth is that in two weeks you’ll know whether a person has a future or not. So of those people who take a year out to work in our industry – the good ones very rarely go back to college because they get used to earning and it’s decent money. Mark Huffam (Producer, Generator Entertainment) you’ll know whether a person has a future or not. So of those people who take a year out to work in our industry – the good ones very rarely go back to college because they get used to earning and it’s decent money. JG: This is a question which applies to Northern Ireland and the Republic of Ireland. Due to our population size, there is a risk that no matter what we do – even offering the best training possible and guaranteeing a long career – there might still not be enough people in Ireland to service the industry effectively. So, what do you do? In animation, for example, is there something that can be done – over and above training – which would encourage someone in Spain (for example) to think that coming to work as an animator in Ireland for five years is a rite of passage for their career? Is there some kind of programme that could make that happen? CW: It mightn’t have to happen. If we didn’t pay the same as London or Dublin we wouldn’t get them. There’s actually such a shortage of good animators now. Studios here, in Dublin and in the UK are all after the same pool of people and there aren’t enough people to go around. There are people, but you want the best and you want them to stay with you. KJ: One of the things that we don’t have yet in Northern Ireland is an effective industry forum. We’re sitting around a table together discussing strengths and weaknesses but we still don’t have a forum where we sit down and share things. NI Screen will occasionally draw people together and that’s very useful but we don’t always share and talk. There are people around this table, and elsewhere, who have the international connections and they should have the opportunity to be able to talk to each other. There is no forum to do that, it’s happened through friendship more than anything else. MH: That’s true. I probably see less of our industry neighbours in this country than I do in a lot of countries. We were the cottage industry for a long time but I would say we are probably the biggest business in Northern Ireland at the moment. Game of Thrones puts £120m into the local economy. What bugs me is that Northern Irish business men invest in film, but not in Northern Ireland. The message isn’t getting out that, actually, the industry is doing really well, it’s a great employer and GM: And if you had a body or forum, as discussed, then its communication would drive the good news stories which would help drive the private investment. KJ: We’re also very bad at making ourselves available to some extraordinarily talented people who come to these shores and perhaps invite us to a seminar or masterclass. Industry doesn’t turn out, we’re really lazy. JG: What opportunities exist, or potentially exist, to grow and strengthen the production industry in Northern Ireland? MH: Throughout the world, where there is a successful film industry there is one solid anchor - the existence of a studio. The most successful ones not only give you production facilities like stages, they also give you post-production facilities, dubbing theatres and cutting rooms. At the moment we have the Paint Hall which is doing a brilliant job but it is totally tied up for the foreseeable future with, I think, the most successful TV show of all time probably (Game of Thrones). So that’s off the market. There are plans and it’s all hopefully happening, but we move at a slower speed to everyone else. KJ: The first thing is building the studio, then it’s populating the rest of that infrastructure. That means other people taking risks, it’s not just about a smaller company moving into those places, it’s other people starting to build their own sound stage, setting up their own dubbing theatres, bringing in their staff and crewing it up with excellence. Once you have a studio space that’s being used on a regular basis and there is sufficient room around it for all of that extra infrastructure, it will begin to build. GM: The mix of business is a good mix. There is capacity and it’s very similar to the capacity in terms of animation talent. If business people can come together and say ‘we’ve got these three films, we can make this studio happen’, could the same thing happen in the animation industry where people get together and encourage new talent? Maybe it’s too ambitious to think that you could share your scheduling information and say ‘ok, well I’ll be finished this by that date’. CW: We actually have done. We’ve met for coffee and laid our schedules out together. We identified the type of people each of us was looking for and we realised that, actually, we’re after different skill sets. We were completely transparent and that’s the way forward. You don’t want a situation where everyone is poaching each other’s people, because that’s not good for anyone. JG: What is the current strategy for industry growth in Northern Ireland? Do you agree with it and what would you do differently? Can I kick it off and say that I think the strategy is different to the South? I think the strategy here is to grow a strong indigenous industry off the back of a strong international industry. CW: I’m not sure if that’s happening though. MH: I think it is because, whether we like it or not, Game of Thrones has put us so firmly on the map. The best experience I’ve had in a long time was making a film in Hungary and then going to Vancouver. You see these places which are centres of excellence and realise we’re already doing what they’re doing – and doing it just as well. And we could do it better if we actually had the same amount of space as they do. It was a real eye-opener. CW: Is the indigenous industry growing, though? The projects coming in are amazing and we all play the Game of Thrones card, especially when we’re pitching to the States. It’s a great thing to be proud of, but is the indigenous industry growing? We still suffer from people feeling that they have got so far in Northern Ireland and that they need to go somewhere else. GM: If you celebrate success you will attract more success and it comes back to that. Be open and collaborative. We talked earlier about communication and telling our own stories in order to attract investment, but better communication also helps attract further success, ideas and talents. JG: Co-opetition - isn’t that the word for it? KJ: NI Screen has a strategy. They’re trying very hard to support the indigenous production across all media and doing an extremely good job of doing that and yet they recognise that you can’t make people be better. You’ve got to go out and be better yourself, you’ve got to learn for yourself and take those opportunities as they come along. One thing that has long been identified is that, while there’s a great talent pool, it’s very thin and there could be a lot more. If there were two big productions going on at once, what happens? Grainne McGuinness (Managing Director, Paper Owl Films) Grainne McGuinness (Managing Director, Paper Owl Films) November/December 2015 — 25 IoD NORTHERN IRELAND NEWS IoD NORTHERN IRELAND NEWS AES sparks up 10 year partnership with nature What started with the discovery of a rare bee orchid at Ballylumford Power Station back in 2005, this year sees AES UK and Ireland celebrate a decade of working in partnership with Ulster Wildlife to help secure a better future for local wildlife and wild places. To mark the 10th anniversary, a range of events have been lined-up to help IoDNI: We’re joined by futurologist @DocNicola for the latest #IoD #Twinterview. Welcome Nicola! IoDNI: Nicola, can you tell us a little bit about what you do? DocNicola: Hello! My crystal ball is broken, so I research customer & employee trends as part of BT’s Global Innovation team. IoDNI: How did you get involved in futurology? DocNicola: I combine research with pragmatic and practical innovation skills after working in both research & consulting in BT. Carla Tully, AES UK and Ireland Vice President (centre) and AES HSE Adviser, Lucy Marsden, with Kelly Muldoon (left) AES staff and their families deepen their connection with nature and the local communities in which it operates, including a family wildlife day at Antrim Castle, environment awareness days at Kilroot and Ballylumford and a practical volunteering day at Straidkilly Nature Reserve. Find out how businesses can help to secure space for nature at www.ulsterwildlife.org/corporatesupport They’ve passed! Some of the successful participants pictured after receiving their Diplomas along with Ewan Boyle of Johnston Campbell, who recently passed his Certificate examination. Also pictured are IoD NI Chairman Paul Terrington, Annual Lunch speaker Paul Kimmage and Peter Martin (right) of Director Development Ireland 26 — November/December 2015 This issue’s Twinterviewee is Nicola Millard, Head of Customer Insight & Futures at BT Technologies (@DocNicola). Nicola was an entertaining and informative speaker at the Strategic Leadership Summit in September. Nicola joined us over the IoD Twitter account (@IoDNI) to discuss the impact of futurology and what impact diversity and technological innovations will have on businesses within Northern Ireland. From supporting the local charity’s nature conservation work as a platinum corporate member, the partnership has evolved to include an innovative Biodiversity Internship, providing a dedicated biodiversity resource for AES people; an ongoing schools education programme to inspire local children about the power of nature; and teams of AES people creating space for nature on its sites. AES and Ulster Wildlife work together to protect the important species that live and visit the AES generation sites, and improve awareness of biodiversity through external volunteering and education programmes. The company hopes that other energy companies will follow their lead and put nature conservation at the heart of their businesses too. The Twinterview Well done to the latest cohort of participants on the IoD Chartered Director Programme, who have been awarded their Diploma in Company Direction. Neville McIlwrath Karen Bailey*, Business Services Organisation Paul Dickson*, William Coates Ltd Kieran Gilmurray, Liberty Insurance Kieran Grant*, Warrenpoint Harbour Authority David Law, W J Law Tony Marron, Liberty IT Gillian McAuley*, Viridian Group Robert McConnell*, CCP Gransden Ltd Neville McIlwrath*, Cooneen Group Raymond Mulligan*, Johnston Campbell Ltd Orla Nugent, ON Consulting Robert Wasson, Independent Consultant IoDNI: How important do you think futurology is to business? DocNicola: Futurology is more like a compass than a map. You need to know which direction you want to go in before you invest in building a road. IoDNI: Are there any examples of businesses who have benefitted from your work? DocNicola: We work with a number of global cos from all sectors – from retailers, to banks, to government, to airlines. It’s never boring! IoDNI: We were delighted that you took part in our recent Leadership Summit, what did you take away from it? DocNicola: Very nice pudding ;-). Also loads of interesting discussion about developing NI skills to meet the future of work. IoDNI: You delivered a very interesting workshop on the day. Can you remind us what the five Ds are? DocNicola: The five Ds are Diversity, Dilbert, Distance, Dr No & Droids. There is a 6th, which is Dolly (Parton, i.e. the 9 to 5). IoDNI: How will diversity impact our working lives in the future? DocNicola: We already have 5 generations at work with different attitudes to work, collaboration & tech. 1 size doesn’t fit all in work anymore. IoDNI: Do you think technology is erasing distance in business and is this likely to change in the future? IoDNI: Can you tell us a bit about what you are currently working on? DocNicola: I’m currently looking at some of the science behind effective and productive collaboration. The problem is measuring it! IoDNI: How do you envisage #NI business in the next five years? DocNicola: We can’t always meet physically in a global market. We won’t kill face-to-face entirely but we can use tech to work apart effectively. DocNicola: I think #NI needs to continue to build & establish the skills and innovation that will allow it to compete in a global market. IoDNI: What do you think working environments will look like in years to come? IoDNI: Nicola, thank you so much for your time today! DocNicola: “Theatrically fluid”. More choices – office, home or hub. We are untethered by tech now. We just need to untether our thinking. DocNicola: No problem. Lovely to tweet you! The interview can be viewed on Twitter @IoDNI Your files. Your Records. Our Safe Hands. Call 028 90 73 23 33 or visit morgandocumentsecurity.com *pictured left November/December 2015 — 27 IoD NORTHERN IRELAND NEWS IoD NORTHERN IRELAND NEWS Reducing your risks Moving the tax goalposts for SMEs by Dr Evelyn Collins CBE As employers most of you will be conscious of the need to make sure you comply with equality laws, whether that be in recruitment, in the day to day management of staff, or in maintaining a good and harmonious working environment. But anti-discrimination laws also make it your responsibility if your employees suffer discrimination or harassment from other members of your staff – even if this involves incidents you were not involved in. • indirect discrimination that cannot be objectively justified • discrimination arising from disability that cannot be objectively justified •harassment by Richard Holley, Harbinson Mulholland Circumstances of course vary, but there are some key things you should have in place to show you have taken reasonable steps to prevent unlawful discrimination in your organisation. Reasonable steps Under all the anti-discrimination laws, anything done by a person in the course of his employment is treated as being done by his employer as well as by him, whether or not it was with the employers’ knowledge or approval. What you need to know There is a possible defence for an employer faced with this situation, however, if they can show that they took all steps they reasonably could to ensure that all their managers and employees staff know what their responsibilities are under the law - what they must do and what they must avoid. That means that you and all your staff need to be aware of what constitutes: • direct discrimination So what are ‘reasonable steps’? • You should have in place policies on the different areas of discrimination and harassment, such as sex, race, disability, community background, disability, age or sexual orientation. The Equality Commission is here to help you with developing policies and has downloadable templates to simplify the process. • A training programme to ensure that everyone who works for you knows your policies, what discriminatory behaviour, harassment and bullying look like and how to avoid them. • Ensure your grievance/investigation procedures make it easy for your employees to report incidents of discrimination or harassment and include a procedure for dealing fairly and effectively with a complaint. • Aim for a good and harmonious workplace environment. Need help? The Commission provides expert training on many aspects of equality law as it relates to employment and running a business. The Reasonable Steps Defence is just one of more than 30 courses on offer to you and your staff. Like all our training, it is free of charge and can be used towards CPD accreditation. Visit www.equalityni.org/ training for more information and details of how to book. Evelyn is Chief Executive of the Equality Commission for Northern Ireland MEMBER NEWS Fire & Rescue role for Carmel Carmel McKinney OBE has been appointed as Non-Executive Chair of the Northern Ireland Fire and Rescue Service for a four year term. She has over thirty years’ experience within the education sector, as a school principal, tutor and manager within further and higher education, has served as Chair of the Belfast Education and Library Board and currently chairs the Northern Regional College. Carmel is also a non-executive member of the Safeguarding Board for NI and a member of Victoria College Board of Governors. Left: Carmel McKinney with the Chief Fire Officer, Dale Ashford, another IoD member Directors be aware Directors and other business leaders need to know the Fire Safety Legislation and what their duties are under the current law. Fire Safety Inspectors audit premises to ensure compliance with the regulations and will provide free fire safety advice to ensure 28 — November/December 2015 premises are up to standard. In continued cases of failure to comply NIFRS will issue enforcement notices and, in the most serious of cases, will prosecute. Information about the Fire Safety Legislation can be found at www.nifrs.org/firesafe Business urged to help STOP Fire During North South Fire Safety Week 2015, Northern Ireland Fire & Rescue Service (NIFRS) targeted the business community to remind them of their responsibility to Fire Safety. Since Fire Safety Legislation changed here 5 years ago, anyone who has control of non-domestic premises must ensure those premises reach the required fire safety standard by ensuring that they undertake a fire risk assessment and take the appropriate measures to reduce the risk from fire and making sure people can evacuate safely if there is a fire. NIFRS has carried out 11,962 inspections of premises to ensure they are legally compliant and fire safe; 26 enforcement notices and 14 prohibition notices have been served and there have been 3 prosecutions. We are often reminded that large international companies look for stability in a tax system when deciding where to locate their operations. The argument is that a stable tax regime will provide the certainty these companies need in planning for the future. But what of SMEs, often family businesses, who equally have to decide on structures and plan for the future? In determining the structure for a family business, for a number of years there have been tax considerations that point towards incorporation. Back in 2005 and 2006 there was a starting corporation tax rate of 0% on taxable profits up to £10,000 and then a reduced rate on taxable profits up to £50,000. The one piece of good news is that a £5,000 tax free dividend allowance will be introduced. More recently there has been Capital Gains Tax Entrepreneurs’ Relief with scope to sell goodwill to newly incorporated companies and pay tax at 10% and in some cases also to achieve the added benefit of corporation tax relief on the write off of the goodwill by the new company. Not least among the tax attractions of incorporation was the ability to take dividends from the new company. Tax advisers produced detailed calculations comparing the tax efficiency of bonuses and dividends and taking into account the need to avoid corporation tax at the expensive marginal rate. This has gone now and the decision to take dividends had become easier with falling corporation tax rates and rising employer’s national insurance rates on salary/bonus. We even have a single corporation tax rate now. Changes So far so good, but the 0% starting rate did not last for long. Also, with effect from 3 December 2014 there were changes to the tax position on incorporation so that CGT Entrepreneurs’ Relief was no longer available to the proprietors of the former unincorporated business and also tax relief was not available on the write off of the goodwill in the new company. We then had the recent Summer Budget, which, amongst other significant measures, announced changes to the taxation of dividends with effect from the start of the next fiscal year, 6 April 2016. The current position is that all UK dividends are paid with a notional 10% tax credit so for every £1,000 of dividend income received it is assumed that £111 in tax has already been paid (the total dividend is therefore £1,111). For this reason basic rate taxpayers had no further tax liability on dividends received. This tax credit will be scrapped with effect from April 2016 so that in future all dividends will be treated as gross (i.e. untaxed) income. Marginal (top) rate of income tax Tax band Basic rate Effective dividend tax rate now 0% Post 5 April 2016 7.5% Higher rate Additional rate 25% Good news The one piece of good news is that a £5,000 tax free dividend allowance will be introduced. These changes do seem to be aimed at SMEs, often family companies, who pay a small salary that is intended to preserve the entitlement to state pension and a larger dividend. Whilst it is likely that dividends will remain advantageous, companies in this position will need to review their remuneration strategy prior to the end of the current fiscal year. It will also be interesting to see whether the dividend changes along with changes in the tax treatment of CGT and goodwill slow down the rush to incorporate. The recent changes will impact family companies significantly. For more information you can contact Richard directly at rholley@harbinsonmulholland.com or 028 9044 5100. 30.55% 32.5% 38.1% Richard is Corporate Tax Partner at Harbinson Mulholland. ANA LYSIS Want to grow sales online? Contact us today. the web bureau TIMEBOUND MEA SURA B IEVA ACH ION www.thewebbureau.com LTAT U S CON BLE LTS ESU LE R Tel 028 9073 1190 November/December 2015 — 29 IoD NORTHERN IRELAND NEWS IoD NORTHERN IRELAND NEWS Recent Ofcom research showed that the majority of SMEs (85%) feel well served overall by the communications market. One in six (17%), however, did not feel well informed about how communications services could help their organisation survive and grow, while around a third (34%) did not have confidence in identifying which new products and services would be valuable to their business. Some SMEs have also experienced problems in terms of the provision and reliability of communications services. Jonathan Rose Make the most of comms services Small businesses can now access more information and advice to help them make the most of communications services, following the expansion of Ofcom’s dedicated online portal. The site – www.ofcom.org.uk/ adviceforbusinesses – includes advice specifically tailored for businesses on choosing or switching to a new provider, as well as information on navigating and negotiating contracts, and resolving complaints with a provider. It sets out clearly Ofcom’s role and the rules that communications providers must follow when dealing with business customers, offering advice on landline telephone, broadband, mobile and postal services. A summary of the rights of businesses, both large and small, is also available. Ofcom wants small and medium-sized enterprises (SMEs) to be able to benefit from competition and innovation in the market wherever possible and to receive regulatory protection where necessary. Ofcom Northern Ireland Director Jonathan Rose said: “Ofcom is committed to supporting and protecting the interests of the SME community, a critical sector of our economy. “We’ve already identified that SMEs are not benefitting as consistently as they should be from high quality digital communications. In particular, there is a greater need for more widespread availability of high-speed broadband and reliable mobile coverage. “A significant programme of work is under way to ensure the communications needs of SMEs are better met.” Ofcom’s revised revised portal includes a ‘jargon buster’ for business customers, and infographics showing the benefits communications services can bring to businesses. The portal was launched last year to provide advice to businesses on choosing and switching provider, navigating and negotiating contracts, and resolving complaints. Easy access to UU for business Do you trust or allow your employees to take decisions at work? by Dr Rozana Huq During an employee empowerment interview, one company leader said to me, ‘We all make big decisions in our lives; we buy cars, houses, we rear families, we make decisions about their education, employment and many other things, so why do we think people can’t take decisions at work?’ He also supplied answers to the question – main reasons are fear and lack of trust. Leaders and managers would like employees to take decisions at work, but the fear is what happens if employees take the wrong decisions? Worse, what if the leader/ manager has problems trusting their employees? There is also another quirky reason – what happens if the employee takes a better decision than his/her leader/manager? This may lead to positive promotional prospects for the employee and the fear of possible redundancy of the leader/manager. This is also a genuine fear not to be ignored! But, whether leaders/managers like it or not, employees do have to take some decisions at work, because it is not feasible to run up to the leader or manager every time a decision needs to be made. Empowerment and motivation From the psychological perspective, there is an argument if employees are empowered and have the authority to take • ‘Why’ – Why are they taking decision? • ‘What’ – What are the required outcomes of the decision? • ‘Who’ – Who to approach for information and resources? • ‘What to do’ – What to do in case decisions need to be changed? Or things don’t go the expected way? Open communication There needs to be open communication and employees should be aware of what kind of decisions they are expected to take and leaders/managers equally need to be aware how much responsibility they are putting on employees, within their job roles and duties. And, by the way, it is important a ‘system’ of accountability and step by step ‘transparency’ is also created in case of complicated decisions where other people are involved, so that everyone can work from the same ‘hymn sheet’. People often forget that fear can apply both ways. It is not always the leader/manager; employees too can sometimes be afraid to take decisions. What if they took the wrong decisions; what if their leader/manager did not like the decisions they took? These are also questions that employees have to deal with. Fear needs to be eradicated on both sides. It is important to remember that just as it is in life, not all decisions may end up with perfect outcome. We don’t always take decisions that end up in the perfect house or car, so too leaders/managers, employees need to accept not all decisions will be the ‘best’. But, the culture of the company should be that employees can take decisions, they have the talent and the ability. It is about giving people respect and dignity at work. Value your employees and declare your value! Rozana is an Organisational Behaviourist, Motivational Speaker, Leadership Educator, and Life Coach. Contact her through her website www.rozanahuq.com Version 6 of the Investors in People accreditation was launched in at a conference in Titanic Belfast in September. Keynote speaker at the event was IoD member Martin Rice of Next Level Impact, one of the most experienced IIP specialists in the world. Martin has supported a diverse international client base using IIP good-practice. In one easy to use platform, Access Ulster provides a gateway to: • over 50 technologies for licencing or collaboration • facilities/equipment in 26 centres • over 20,000 research articles • and internationally recognised experts Next Level Impact is itself an IIP GOLD level accredited organisation and the first organisation in the world to be assessed against IIP v6 … outcome pending. Developed by talking to business people, the portal responds to your needs and queries rather than what the University thinks you should know about. 30 — November/December 2015 Whether it is a small decision or a big decision, each decision has an impact on the organisation. It is in the best interest of the organisation that a ‘system’ is created whereby each employee asks the following basic questions: Dr Rozana Huq 6th generation of IIP launched Ulster University has launched Access Ulster - a new unique online portal that is designed to help businesses and entrepreneurs benefit from the University’s world-leading research, expertise, specialist equipment and facilities. Well worth having a look at – go to www.ulster.ac.uk/access decisions, it makes them more motivated to help organisations achieve their goals and objectives. By way of contrast, ‘… disempowered employees tend to become over-reliant, dependent, demoralised and not very willing to use their initiative’ (Heslin, 1999: 54). Martin Rice speaking at the IIP conference Martin would be happy to share his experiences with fellow Directors and you can contact him at 028 9044 7655 or check the website www.nextlevelimpact.com November/December 2015 — 31 IoD NORTHERN IRELAND NEWS IoD NORTHERN IRELAND NEWS Innovation within Probation Board for Northern Ireland IoD member Cheryl Lamont, (Acting) Director of Probation, explains the role of the Probation Board for Northern Ireland and how the organisation is innovating to counteract the impact of reducing public resources. Cheryl is also a member of the Criminal Justice Board. The Probation Board for Northern Ireland (PBNI) is a Non Departmental Public Body of the Department of Justice. Its aim is to change lives for safer communities and is responsible for rehabilitating and reintegrating offenders into the community. PBNI works at all stages within criminal justice; in courts, in custody, in the community and with the victims of crime. All probation officers in NI are professionally qualified social workers and use the most effective practice in risk management to keep communities safe. Reset: a project funded through the NI Executive Change Fund 2015-16 and being piloted in partnership with criminal justice and community partners to provide intensive resettlement and rehabilitation support from when an offender leaves prison. The initial period following release is a critical time as research shows a significant proportion of male prisoners are recalled in the first weeks because they fail to comply with supervision or have reoffended. Enhanced Combination Order: a pilot scheme developed to direct offenders from shortterm custodial sentences by offering judges a more intensive community order focusing on rehabilitation, reparation, restorative practice and desistance. The ECO commences in October 2015 in two Court Divisions. Like all public services, PBNI is operating against a backdrop of reducing resources so innovation in PBNI’s work is all the more important. Restorative approach: PBNI and two restorative justice community partners are piloting a restorative approach for adult offenders on PBNI statutory supervision and their victims. Evidence suggests using restorative practices can potentially make savings across criminal justice. New initiatives Probation works Here are some of the new initiatives PBNI is undertaking: PBNI will continue to contribute to its role within Policing and Community Safety “I often describe CO3 as the third sector sister of IoD! Established in 1985, CO3 is a membership based charity that supports third sector leaders. (The term third sector, encapsulates the broad range of charities and social enterprises that occupy that space). Under the helm of our excellent Chief Executive Nora Smith, CO3’s membership base has grown significantly over the past year. CO3 prides itself on strengthening Is your business struggling with stress, absenteeism and sub-optimal productivity? Read on and discover how mindfulness can significantly benefit your organisation. Mindfulness benefits ‘business’ Whether your ‘business’ is public service, for profit or not-for-profit, there are numerous scientific and clinical research studies evidencing the significant, positive impact of mindfulness – both to individuals and organisations. Cheryl Lamont Some of the key benefits are: Partnerships in order to make a real difference to communities by providing local solutions to local problems. 1. Physical and Emotional Wellbeing 2. Leadership Development 3. Innovation and Creativity Probation in Northern Ireland works. It is a central strand of the Criminal Justice System here. Reconviction data that shows 69% of adults who received a community sentence did not reoffend within one year. Through collaboration, innovation and staff professionalism, we will continue to change lives for safer communities. With these benefits, your organisation has a powerful tool to reduce stress in the workplace, improve working relationships, improve employee wellbeing, enhance creativity, increase productivity and lower absenteeism – all of which support organisations to be much more efficient and effective. What is Mindfulness? and building its links between the third, private and public sectors. Additionally a number of private sector leaders, have joined as Corporate members. This network offers private and third sector leaders the opportunity to forge stronger working relationships. As CEO of a leading NI social enterprise, I have a particular insight into the common ground we share. I strongly believe that collaboration between the sectors is critical. As we look beyond the state for solutions to our growing challenges, there is a need for innovation, enterprise, energy, coordination and partnership. CO3 has also recently set up a third Sector Trustee Network; if you sit on a third sector board, this growing network provides an excellent platform for information, networking and development in understanding your role as a third sector trustee/executive. “ Nora Smith 32 — November/December 2015 John McMullan How mindfulness can profit your business by Frank Liddy, Co-Founder of The Belfast Mindfulness Centre IoD’s third sector sister! John McMullan, Chief Executive of the Bryson Charitable Group, an IoD member and the IoD UK Third Sector Director of the Year in 2013, is currently Chair of CO3 (Chief Officers third sector). Here John explains the role of the organisation. Mind your own business! For further information on CO3, contact Nora Smith, CEO on nora@co3.bz Mindfulness is “paying attention in a particular way; on purpose, in the present moment, and non-judgmentally” (Jon “Mindfulness is a skill that can be learned.” Kabat Zinn). All human beings possess this capacity. However, for much of the time, we live our lives on ‘autopilot’ unconscious emotional and physiological reactions to everyday events. We therefore need training to actively cultivate this skill so that we can experience the benefits of mindfulness. Mindfulness is a skill, not a religion. Its benefits, therefore, are available to everyone. As with all new skills, the more you practice mindfulness, the more you reinforce the precise neural pathways in the brain where mindfulness exacts its specific and beneficial effects. As a direct consequence of strengthening and deepening your practice, you will increasingly experience yourself being more ‘mindful’, bringing with it all the attendant benefits for you and those around you. Who is using mindfulness? Across the globe, leading blue-chip companies and major public authorities (Google, Apple, Sony, Ikea, Transport for London and the Department of Health to name but a few) have already adopted Mindfulness programmes. Find out for yourself A half day ‘Mind Your Own Business’ Workshop will be held at Riddel Hall, Belfast on 28 January. The session has been designed exclusively for business leaders and senior decision makers in any sector. Through specially selected exercises and specific techniques combined with facilitated reflective practice, you will experience directly for yourself: • What mindfulness is • How it affects the nervous system Frank Liddy • The benefits of mindfulness • How it supports individuals and organisations • Creating the conditions for mindfulness practice • Techniques to practice mindfulness • Some of challenges to practice and how these can be overcome; • Approaches to maintaining and strengthening your practice. Frank Liddy is a qualified integrative humanistic counsellor, and the co-founder of The Belfast Mindfulness Centre www.mindfulnessbelfast.org Frank will lead this bespoke workshop. IT ’S OUR BUSINESS TO SUPPORT YOURS Tel: 028 9442 9717 www.robinson-services.com cleaning hygiene laundry security November/December 2015 — 33 IoD NORTHERN IRELAND NEWS IoD NORTHERN IRELAND NEWS Being part of the arts by Michelle Hatfield, George Best Belfast City Airport George Best Belfast City Airport is a firm supporter of the arts and through our business membership of Arts & Business NI, we have become involved with arts groups at a local level. Since 2009, the Airport’s Community Fund has invested more than £200,000 into local groups and projects, including providing financial support for youth theatre programmes, and we have hosted Craft NI fairs in the terminal building which facilitates approximately 10,000 passengers every day. The thriving arts and culture scene in Northern Ireland offers the opportunity to experience something completely different, and to explore new ways of thinking and working. This can deliver benefits for both individuals and businesses. Arts & Business NI has guided us in working with the arts, and through their core programmes such as Investment Programme and Professional Development Programmes (Board Bank and Young Professionals) they can really help to drive your business forward. Positive connections Being involved with and supporting the arts can be extremely beneficial and rewarding for companies of all sizes. It is a wonderful opportunity to encourage creative thinking whilst building positive connections and supporting those within the arts sector. Whilst the arts cater to all ages, we have placed significant emphasis on supporting the development of young people through the arts in recent years, as this is always a key priority at the heart of our Corporate Committee chairmen Jonathan Guest, Harland & Wolff (Connecting) Bill Beers, Beers Engineering Consultancy (Business Environment) Regus working spaces One of the most popular benefits of IoD membership is the access it provides to both IoD and Regus premises around the UK and worldwide for meeting and working. Check out the locations at www.iod.com/premises Have you registered with Regus for your free access to national and international solo working spaces at 3,000 locations in 900 cities across 120 countries across the world as well as a 15% discount on all Regus private meeting room bookings? In Northern Ireland, members are welcome to the facilities at Queen’s University’s Riddel Hall at 185 Stranmillis Road in Belfast, where the IoD office is based. Qualifying *members can register by calling the IoD Membership Team on 020 7766 8866 who will be happy to check your eligibility and provide you with the necessary registration information. The facilities at Riddel Hall include free parking close to the building, access to two Executive Lounge areas on the ground and first floors, free wifi, and a variety of rooms that can be hired, all equipped with the latest IT equipment. Catering is available. The Institute of Directors exists to support our members – the business leaders – as they grow and develop their organisations. • A copy of the bi-monthly IoD NI News • Your profile can be included in an issue of IoD NI News • Access to register on our NXD Directory Michelle Hatfield at New Lodge Arts Responsibility strategy. This has included very successful partnerships with the likes of Pintsized Productions, New Lodge Arts, Music Theatre for Youth and Cinemagic. Continuous development of the arts is necessary to ensure cultural vitality, which can be enjoyed by all ages across Northern Ireland, and even by our passengers flying in on business or for a short break with family or friends. Our Community Fund committee meets several times throughout the year and we always look forward to supporting projects with an arts focus. If your company would like to get involved with the arts sector, then I would recommend that you contact fellow IoD member Mary Nagele, Chief Executive of Arts & Business NI, at 028 9073 5158 or mnagele@artsandbusinessni.org.uk Michelle is Director of Human Resources and Corporate Responsibility at George Best Belfast City Airport and a member of the IoD. Geraldine Gordon, Gordon Business Consultancy (Education & Skills) Gordon Milligan, Translink (Developing) Ian Sheppard, Bank of Ireland (Economic Strategy) Members Noel Brady, Consult Nb1 Colin Coffey, RDA Group Ashleen Feeney, KMPG Caroline Keenan, ASM Belfast Neal Lucas, Neal Lucas Recruitment We have created a portfolio of membership benefits which are designed to provide members with the knowledge, tools and advice to help them be more productive, competitive and profitable. Take advantage of IoD membership by using these benefits whether you are at your desk or on the move. Details of all member benefits can be found on our website www.iod.com Benefits included as part of the annual membership fee: • Meeting space at 13 locations around the UK and in Paris • 25 business research sessions each year • 4 one-to-one sessions with a business expert each year • 25 calls to our business legal advice line each year Marie-Thérèse McGivern, Belfast Metropolitan College Jill Robb, Origin Digital Rose Mary Stalker, Catagen Joanne Stuart, NI Science Park Alan Taylor, Arthur Cox • Access to our extensive online business support resource To contact any members of the Northern Ireland Committee, email iod.northernireland@iod.com • Access to airport lounges across the UK • Access to the IoD exclusive LinkedIn group with over 7000 IoD members • Access to the IoD Northern Ireland LinkedIn group • Monthly online newsletters from London and your local region • Advert on our business directory • Subscription to Director magazine 34 — November/December 2015 For information about the IoD facilities at Riddel Hall, phone us on 028 9068 3224 or email iod.northernireland@iod.com To book rooms or catering, contact the Riddel Hall administration office on 028 9097 5647. *Benefit available to all full active UK, EU, and Overseas members (excludes Students, Retired and Channel Island members). Qualifying members with less than one month of membership remaining will be required to renew their IoD membership before qualification. IoD resources and benefits to support members The IoD NI Committee Chairman Paul Terrington, PwC Immediate Past Chairman Mervyn McCall, MNV Ltd Treasurer Geoffrey Henderson, TotalMobile Your IoD premises And More... • Representation at the highest levels of national and regional government and the opportunity to participate in surveys and receive copies of our policy publications Big Picture and Pulse • Networking across the UK through our regions and branches who run a whole range of events from black-tie dinners to breakfast briefings • Discounts off our respected range of director-level training and development programmes including our Chartered Director qualification which is recognised internationally as the goldstandard in director level training • Discounts off our conferences and events with their high profile speakers IoD Preferred Programme: specially negotiated products and services: • IoD Health Plans www.iod.com/healthplan • IoD Jobs and Recruitment www.jobs.iod.com • IoD Travel Services www.iod.com/travel • IoD Car Rental www.iod.com/carrental Join the IoD You can apply to join the Institute online at www.iod.com/join or telephone our Membership Department on 020 7766 8888. Disclaimer Articles are published as a contribution to discussions about business issues. They represent the personal views of their authors and do not necessarily reflect Institute of Directors’ policy. • IoD Directors Liability Insurances www.iod.com/dli Contact IoD • IoD Professional Indemnity Insurance www.iod.com/pi Director: Head of Business Development: • IoD Office Insurance www.iod.com/officeinsurance • IoD Business Sales, Mergers and Acquisitions www.iod.com/buyandsell • IoD Home and Contents Insurance www.iod.com/homeinsurance Linda Brown Lisa Keys IoD at Riddel Hall 185 Stranmillis Road Belfast BT9 5EE Tel: 028 9068 3224 Email: iod.northernireland@iod.com November/December 2015 — 35 Unbeatable at keeping your calls connected We know calls are important as we carry over 73 million of them every day. So, we’re unbeatable at connecting your calls and keeping them connected. Power to entrepreneurs Vodafone Power to you Based on call connection performance and dropped call performance across 26 towns and cities as measured vs. three main competitors in April 2014 by Vodafone Group. For verification see vodafone.co.uk/network. Calls carried is based on average daily calls from 1 October 2014 – 18 December 2014. To enjoy competitive business rates call Rainbow Communications today on 0800 012 1420