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Professional manager feb mar2012


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The February/March issue of Professional Manager is now out, see what's inside... …

The February/March issue of Professional Manager is now out, see what's inside...

Vist Professional Manager online, for your chance to comment on topical features and web-exclusive journalism from the sharpest writers, interactive features and the bright, bold visuals readers have come to expect from the relaunched Professional Manager brand.

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  • 1. THE CHARTERED MANAGEMENT INSTITUTE MAGAZINE£4.50 / FREE TO MEMBERSFEBRUARY/MARCH 2012SILVER MONEYHow to save for youremployees’ retirementNEW ROMANCELearn to love your job again INSIDE EDGEHAPPY MONDAYS Risk analysisMatch your management at workstyle to the weekday RED ALERT Why Obama’s most tech-savvy strategist turned social media into business intelligence
  • 2. AS GOOD AS OUR WORDEVER METJOE BLOGGS?The average person doesn’t exist. So why settle for genericinsurance? At Hiscox, we tailor our policies to the specificrisks you or your business may face.For information on professional indemnity and officeinsurance for members of the CMI, please contactTim Evans on 020 7929 3400 or Business Insurance are underwritten by Hiscox Underwriting Ltd on behalf of Hiscox Insurance Company Ltd, both of which are authorised and regulated by the Financial Services Authority.Bannerman Rendell are authorised and regulated by the Financial Services Authority. 9345 10/11
  • 3. Professional Manager February/March 2012 Chartered Management NEWS & VIEWS Institute (CMI) Management House, Cottingham Road, Corby, 05 Briefing Northamptonshire NN17 1TT Risk is inherent to business. Make sure you manage it, t 01536 207307 says Christopher Kinsella e 06 Feedback The Secret Sta er on customer service and your letters 08 Agenda Acting Chief Executive Michael Skapinker brings you this month’s management essentials Christopher Kinsella 17 Personnel touch Director of Marketing Alison Blackhurst on how to handle extra bank holidays and Communications 18 Debate Simon Dolph Does social media hamper productivity? Editor Ben Walker 18 50 AOB Attempting to measure everything is futile, says Simon Caulkin Art Director Darren Endicott Senior Sub-editor Gemma Green FEATURES Editorial Assistant Rebecca Kearley 20 20 McAndrew meets… Edward Saatchi Account Director Sam Gallagher Publishing Director It worked for President Barack Obama. But will Edward Ian McAuliffe Saatchi’s social media revolution really transform UK management? ITN’s Daisy McAndrew logs in Advertise with us: 24 How to take a chance For all enquiries, contact The trick with risk is to understand it, says Ben Walker Michael Coulsey (t 020 8962 30 What a day for… 1261, e michael.coulsey@ Tailor your management tasks to the day of the week, says or Samantha Lyster Vicci Rule (t 020 8962 2942, 34 Life savers e Philip Smith dives into the new pensions duty Professional Manager CPD PLANNER © 2012. Published on behalf of CMI by Think, 38 37 PM profile The Pall Mall Deposit, Chartered Manager Karen Taplin of Williams Lea 124-128 Barlby Road, 38 Masterclass London W10 6BL Learn how to fall back in love with your job t 020 8962 3020 40 Ask the expertsCOVER PHOTO: CHARLES BEST, REPRO JAMES WOOTON e professional.manager@ Your questions on risk management answered 42 Fleeting thoughts Squeezing sta into small cars is a false economy, Member of the Audit says Peter Rodger Bureau of Circulations 44 Reviews and events 80,948 1 July 2010 to Our word on books and apps – plus key dates 30 June 2011 for your diary Printed on UPM Star matt. Produced at a factory that holds ISO14001, environmental management certificate. CMI is incorporated by Royal Charter and registered as a charity (No. 1091035). CMI does not necessarily agree with, nor guarantee the accuracy of, statements Contributors made by contributors or advertisers or accept responsibility for any statements which they may express in this publication. ISSN 0969-6695© Daisy McAndrew Samantha Lyster Philip Smith ITN’s special The former Times The business correspondent talks online editor writer for The Daily to Edward Saatchi looks at how each Telegraph highlights about his company weekday has its own the changes to NationalField p20 personality p30 pensions p42 _ 03
  • 4. GET MORE FROM CMIChristopher Kinsella, acting chief executive, CMI As a CMI member, you have access to a comprehensiveOtto von Bismarck had it right. “A related websites”, they are taking a range of products andlittle caution,” said the large Prussian big risk, often without realising it. services, all designedstatesman, “outflanks a large cavalry.” We quote research that reveals more to help you on your pathHis words reveal a great truth: carefully than half of college students and to management successcalculate any risk before you take young professionals would refuse toit. Caution is as much of a virtue as join a company that blocked access to ON THE WEBcourage. You need a bit of both. social media, or simply find a way to With free checklists, e-learning This issue is themed on risk and circumnavigate those rules. The stakes modules, podcasts and an “askreward, and how those great tenets of are high in that risk equation: play Big the researcher” service atbusiness manifest themselves in the Brother on internet use and you might process of the modern send the elite of the next generation into managementresources, the latestworkplace. Our examination of how the arms of more liberal employers. thinking is just a click calculate odds, quantify stakes, and The lesson is that risk is found in theanticipate the moves of others (page 24) most unlikely places. CMI is aware of ON YOUR CVserves as a reminder that even everyday this. To combat it, we train our managers Enhance your professionalbusiness practice is fraught with risk. in sound risk management. But risk status with a CMI managementInnumeracy is apparently so rife among management is not designed to eliminate qualification, not to mention studyotherwise educated adults that one has to every possible pitfall. CMI accepts that tips when you need them the most.assume that many managers are creating risk is an intrinsic part of enterprise.strategy based on erroneous assessments Indeed, a properly implemented, IN YOUR INBOXof the risks at hand. Sometimes people comprehensive risk management Keeping on top of employmentunderplay risks. Yet – arguably more process can encourage an increased law changes and managementoften – they also overestimate them. appetite for risk – because problems updates has never been easier Take internet use and social media. have been identified and calculated. with our monthly e-newsletterOn page 18 we debate whether the Gains are maximised, downsides clipped. Membership Matters and e-alertsuse of social networking at work risks Bismarck was no coward, nor no dove. from our partners at BusinessHR.compromising productivity. CMI’s His record of declaring war on a raft ofown Adi Gaskell argues that it does European powers demonstrates that FOR THE JOURNEYnot. Indeed, he goes further, expressly he was willing to take risks, provided Make your next managementmaking the case that the use of Facebook, he deemed it to be the right strategy. move with confidence usingTwitter and similar products actually Many risks should be avoided, but, as our online continuing professionalincreases productivity by giving sta a Bismarck realised, you have to take development system and careerchance to rest their brain for short some of them. guidance resources.periods during their working day.Workers will either produce work Find out more about how CMI can help ON YOUR PHONEof su cient quality and quantity you manage risk at Want answers on the move?or they won’t. Take social media Then download our free CMI appaway and the unproductive ( will find some or contact our legal helpline forother distraction. up-to-the-minute advice from a Some managers qualified solicitor.will bridle at thisanalysis – and that’s IN THE COMMUNITYreasonable too: why Keep the conversation goingshould businesses “Risk is online – through our forums –pay their sta tomessage their friends? found or at one of our top regional networking events (see page 46). Yet, when in theorganisationsclose down access most NOT YET A MEMBER? Visit social media,personal email or the unlikely or call 01536 207307 to places” join today.nebulous “non-work _ 5
  • 5. GET IN TOUCH Send your views to professional. or PM, Think, The Pall Mall Deposit, 124-128 Barlby Road, LondonYour chance to comment on management matters W10 6BL. Letters may be edited for length and clarityPRIZE LETTER of their loyalty (or disloyalty), so they get their issues and concernsDragon made o their chests and hopefully are rewarded or at least acknowledged.a friend of me A positive message is good forWell done, Deborah Meaden, business and a negative messagefor finally debunking the old has to be handled with respect.chestnut that the customer is LETTER That is just good business sense.king (Winter 2011/12, page 15). PRIZE Social media is transforming theIt’s a business mantra that is ready way that customers interact andto be replaced. The proof more opportunities are opening up Vivienne winsis mounting that customers buy for interaction with businesses. To two ticketsinto brands, products and services to Decanter some, customers are still kings, butand, as Meaden says, want to be Magazine’s for many the mantra has changedtreated as “respected friends”, Italian Fine Wine to reflect advancing technology, innot kings. Increasingly savvy Encounter at the way customers are interactingcustomers are posting both The Landmark with businesses and each other. Ipositive and negative messages Hotel, London am delighted by this.on Twitter, Facebook, LinkedIn on 19 May 2012. Vivienne Leach MBA,and company websites. These This event BSc, PGCE, MIOC, will showcasemessages provide valuable Dip Corporate Coaching some of thefeedback, and all businesses best wines fromshould be thanking customers for Italy. Guests will Labour of learningblogging and interacting. These sample more Baroness Prosser (Winter 2011/12,interactions reinforce the idea than 300 Italian page 19) questions the biasthat customers would rather be wines from the towards academia at the expense students for whom this was never arespected friends. Well, certainly finest vineyards. of vocational training, recognising realistic option. This is because welistened to, at the very least! Visit www. that the country needs people with have an education system basedFriends tell you when things are practical skills, and blames the on outputs, rather than outcomes; wine-events togoing well and when things are current government for slashing where we are more focused on find out more.not going so well. They also tell education spending by more than exam results than on learning.all their friends too, and this is a 13% and taking the education Let teachers teach and studentspowerful message. They expect to debate in the wrong direction. learn. Remove the bureaucracybe treated with respect because The truth is that successive of employing apprentices whom governments have developed only medium and large companies ridiculous performance measures can deal with. Let all businesses LATEST DISCUSSIONS ON that favour education instead employ and train these young PROFESSIONALMANAGER.CO.UK of learning – and I will explain people to use their strengths and the di erence. Education can be perhaps, in the future, we’ll find ● Part of the team ● Risk and ruin Adi Gaskell on giving Mike Petrook argues that measured by exam results to show it easier to find “tradespeople” employees something unfair dismissal rights academic achievement. Year-on- such as plumbers, electricians to belong to protect innovation year, more students achieve A and carpenters. If we do not take professionalmanager. professionalmanager. grades in GCSEs and A-levels, yet action now, don’t be surprised to the UK is seen as having a failing see society deteriorating. education system where numeracy Alan Wingrove ● Power from the people ● Role models and literacy are falling. This Is the government right Coco Chanel and Oprah paradox proves that our education You booze, you lose to consider reducing Winfrey are the heroines system has detached itself from Alison Blackhurst raises some workers’ rights at the of management expert smallest firms? Christina Ioannidis students’ learning. The idea of important issues in her column professionalmanager. professionalmanager. every student leaving compulsory on the potential headaches of education with five A to C grade o ce Christmas parties (Winter GCSEs has disengaged a swathe of 2011/12, page 43). She is right06 _ PROFESSIONAL MANAGER _ February/March 2012
  • 6. Letters WHEN THE PRICE I once saw a Canadian stand-up IS RIGHT, THE comic describe the differences between his country and mine. CUSTOMER ISN’T He said that in Canada they had a Management and customer magical thing that simply does not service are expendable for exist in my country: customer service. companies that compete only Taking care of customers is a on price, says the Secret Staffer business imperative, right? It costs nothing and can really separate you from competitors, right? Managing employees to look after customerswhen she says: “Free flowing will result in more business if puntersbooze is, I’m afraid, probably feel they are being helped, right?a mistake.” Wrong, wrong and wrong. Today’s As an employment lawyer, I find lesson: the customer service myth –that the majority of employment SECRET don’t believe the hype.tribunal claims arising from STAFFER My company prides itself ono ce Christmas parties are customer service. It gives producta result of excessive alcohol training to staff and encourages themconsumption. Drinking too much to do whatever customers need. Our stated aim is to be theoften results in the lowering of, best customer service retailer in the country.or the abandonment of, social Someone should really tell the people who shop here.inhibitions and standards. Sexual I work for a large household name retailer. People neverharassment and violence are the tire of regaling me with their experiences at the store – I’d saymost common complaints on that I never tire of hearing them, but it would be an outrightclaims arising from o ce parties, lie – and I have never heard anyone talk positively about myoften as a result of inebriation. employer. Some people complain to me about the service they As Alison states, it is important got in a store hundreds of miles away, some say they refuse tothat managers restrict the amount go there (I bet they still do, though). One charming lady onceof alcohol available. Managers are told me she wanted to shoot all our employees in the face withalso advised to remind employees a nail gun. However, they never complain about our treat each other respectfully. Despite the rhetoric, service is crap here. The pay is low, the Bosses may want to think about staff don’t care, most don’t know much about their products,a specific policy on behaviour and those who do are moved from department to departmentat o ce parties. Currently, only so often the know-how they have accrued is wasted.around a third of employers have The training is impossible to fail, so our bored employeessuch a policy. The policy should lay race through it in futile pursuit of an adrenaline kick.out what is considered acceptable With poorly managed staff like that it would make sense ifbehaviour and what is not, but we were tanking. But we’re not. My company is huge. Cheap,should try to avoid straying into really huge and really, really profitable.“party pooper” territory. O ce We are the biggest retailer in our sector by far. When theparties are, after all, a celebration recession hit, the money we lost year-on-year would haveand a way for employers to show been enough to purchase another major retail chain – theappreciation for the work of their household name in its sector – outright. Like I said, huge.employees. Such a policy is a clear If consumers really cared about customer service, big-box,reminder of expected behaviours stack-it-high, sell-it-low retailers such as mine wouldn’tand helps if any subsequent action exist. We’d all be getting greeted by name by the butcher,is required. Find out more the baker and the candlestick-maker – and paying throughAdrian Hoggarth, head of The Secret the nose for it. My company pays lip service to customeremployment, Prolegal Staffer’s service because it makes it look like it’s trying, which is good company’s PR, but it’s never going to correct these ills until our crappy approach to management affects the bottom line. And that won’t happen customer until customers stop complaining and just stop buying. Or relations led someone shoots us all with a nail gun. to a race to the bottom on price – and service quality. Find tips on more enlightened approaches at cmicustomer The Secret Staffer _ 07
  • 7. For the latest management news and views, visit from across the world of management Management minutes Financial Times associate editor and management specialist Michael Skapinker lists his regular round-up of the top 10 news items for managers1 3 Government to consult on protected Need for creative conversations industry skillsEmployers will be able to have According to a report by“protected conversations” the Confederation of Britishwith members of sta , Industry (CBI), the creativeallowing them to discuss sector is expected to employemployee performance 1.3 million people by 2013,without the fear of being potentially making it largersued for constructive than the financial servicesdismissal, if government sector. It is important to makeplans come to fruition. Prime sure these people have theMinister David Cameron right skills. “We must ensuresaid that the government that young people leavewould consult on a new set school with a strong graspof rules “so a boss and an of the basics. Solid mathsemployee feel able to sit downtogether and have a frank and science is particularlyconversation – at either’s vital,” said Susan Anderson,request”. Companies believe CBI’s director for educationprotected conversations are and skills.very important now that the 5government has scrapped without challenge but paying Disciplinary action if they had been recruited PHOTOGRAPHY: EVERETT COLLECTION/REX FEATURES, SHUTTERSTOCKthe default retirement age of them compensation. over social media directly. After 12 weeks in the65. But companies need to be While some companies same job, agency workers are 4careful that discussions do not Chief executives may encourage sta to use now entitled to the same basictrigger discrimination claims. urge employment social media such as Facebook, pay, overtime and bonuses of ex-o enders LinkedIn and Twitter for as directly recruited sta .2 Unfair dismissal Sir Richard Branson and work-related activities, 21% 7 rights to remain Marc Bolland, chief executive have taken disciplinary action Unions accuse on The government of Marks & Spencer, headed over inappropriate postings Swedish derogationhas decided against a more a group of corporate leaders about another individual, No sooner were theradical reform to employment calling on companies to according to a study by new agency workers’ ruleslaw, which would have ended employ former prisoners. law firm DLA Piper. introduced than trade unionsemployees’ rights to sue “It is a fact that 70% of accused some employers of 6for unfair dismissal. The people leaving prison Agency rules finding a way around them.suggestion came in a report re-o end within 12 change The Trades Union Congressby Adrian Beecroft, a donor months, but this figure The (TUC) passed a resolutionto the Tories. The Institute drops to 22% for ex- government has expressing concern overof Directors welcomed o enders in full-time improved the rights of companies using the “SwedishBeecroft’s proposal, saying jobs,” they said agency workers, derogation”, under whichit would have liked to see in a letter to putting them the agency, rather than thethe law changed to allow the Financial in the same company, acts as the employer,employers to dismiss sta Times. position as depriving workers of the new8_ PROFESSIONAL MANAGER _ February/March 2012
  • 8. News rights. The TUC said it was considering a legal challenge to the practice. 8 Young recruits lack NINE TO FIVE workplace skills The shortage of young THE WHISKY GURU people with relevant skills With a brand that he started in his London kitchen, founder and head is a concern for 28 leading whisky maker of boutique blender Compass Box Whisky Co John Glaser companies and professional is challenging the conventions of a very traditional industry organisations interviewed by the FreshMinds consultancy 0515 I power through emails that on behalf of the Young have arrived overnight, before having Enterprise charity. Three breakfast with my two boys and quarters of the companies walking to work. It’s important to me surveyed thought the to walk to and from work. It’s a way to education system was not clear the head and think more deeply giving young people the about the issues of the day or week. skills needed to enter the 1000 My palate is best in the workforce. When asked to list morning, so this is when we do the problems, one company tastings or create prototype blends. said: “Commercial awareness, I might bring in samples of things written and spoken English, we’ve been working on, and it’s technical skills, interpersonal great when I taste them and skills, you name it.” think: “No one’s ever done anything like that; it’s a winner!” 9 Female directors These are eureka moments. make some progress 1200 There is a brainstorming One year since the meeting about the launch of a review by Lord Davies on limited-release whisky. The world female directors, progress of Scotch whisky is steeped in is slow but discernible. In tradition and we are regarded as October, government figures creative and innovative, because we revealed that women now try to remove the rules that people companies. It’s not as romantic make up 14.2% of FTSE 100 feel surround the use of Scotch as you’d think. directors, compared with whisky and make it more relevant 1700 I call our California sales 12.5% in 2010. Women account to modern times. brokers to discuss the launch of a for 8.9% of FTSE 250 directors 1300 I check my travel plans. new product there. It’s a process – up from 7.8% in 2010. The I spend a lot of time at events around that starts with me getting an idea number of all-male FTSE 100 the world where I can meet whisky and making the commercial case boards has fallen from 21 in lovers. Many of them really enjoy for it. The fun part is sourcing the 2010 to 14 now. what we do and that is rewarding, component whiskies and putting but it’s equally important to hear them together, and finally working 10 Directors’ what they wish we did and see with our package designers to come pay soars what competitors are doing. up with something that makes Directors’ 1500 Maintaining our relationship people go “Wow”. pay is not su ering despite with distillers is a big part of my 2200 I sometimes have a glass of the economic crisis. Total role. People think these are old guys whisky to end the day, but not often on earnings of FTSE 100 with big beards, doing things the weekdays, when I have to be up early. directors rose by an average same way they did 200 years ago. In Sadly, I’m not just drinking whisky 49% in the past financial reality, I’m mostly dealing with big all day; that would be some job! year, according to research by Incomes Data ServicesILLUSTRATION: QUINTON WINTER (IDS). The average company THE BOTTOM LINE director now earns SHORT, SHARP AND SMART SECRETS TO SUCCESS £2.7m per annum. Steve Tatton, editor of the IDS “I tell colleagues they can have five report, said: “Britain’s minutes now, or an hour later, and they economy may be struggling have developed the skill of presenting to return to pre-recession ideas very quickly. It has liberated me!” levels of output, but the same Tim Smit, chief executive and co-founder, cannot be said of FTSE 100 the Eden Project directors’ remuneration.” _ 9
  • 9. Jump the for that plum management position Candidates with the right Qualifications on their CV are in pole position for the plum managerial jobs. Make sure that’s you, by gaining management and leadership Qualifications awarded by CMI. Study part-time or online, whichever suits you. For more information or to enrol for a CMI Qualification today, call 01536 207404 or email employer.
  • 10. News Bring the big questions to your desktop with professional Visit our new Professional Manager website for web-exclusive articles and analysis of the current affairs that matter to UK managers. As well as an archive of the best articles from Professional Manager, Training joins features fresh content from leading writers examining management news and asking you for your views. tech revolution Visit professionalmanager. today – and sign up for our Twitter feed, @ProfManager – to keep This year is likely to see a digital the panellists were unanimous in abreast of the latest content revolution in training, according to saying that learning technologies are on the site. research. A report into e-learning by very much the norm now,” says the accredited accountancy body Acca document. “They did add, however, that SEARCH – your favourite reveals that the number of organisations these technologies would undoubtedly articles from the magazine delivering over 50% of their training via become more sophisticated and adept at at your fingertips, helping e-learning will more than double in 2012. meeting the needs of professionals and you become a better leader And, citing external research from organisations over the next 10 years.” and manager. the Chartered Institute of Personnel Report panellists scorned the idea that and Development, Acca states that 46% e-learning was an easy ride compared to DISCOVER – web-only of organisations will have more than a traditional training. “E-learning can be content, including exclusive quarter of their training online in 2012, incredibly demanding, because learners new sections such as My Hero up from 26% in 2011. are doing a lot of the learning and the and Whose Side Are You On? The Acca report forecasts that research themselves, which is incredibly e-learning will grow further. “When beneficial to deep understanding,” says DEBATE – get interactive! asked whether learning technologies Martin Taylor, chief executive of BPP Let us – and the world – would be the norm in 10 years’ time, Business Schools. know your views on leading managers’ styles, key management issues, THE REPORT MAKES FOUR KEY PRACTICAL and current trends. RECOMMENDATIONS FOR ORGANISATIONS WISHING TO JOIN THE E-LEARNING REVOLUTION: Remember that E-learning must Poorly designed Make it technology is only be integrated in software can feel familiar a means to an end wider training alienate employees “You need to think “The reality is,” programmes from e-learning about where people says BPP Business “When putting “You have to invest are in terms of Schools chief programmes time in producing technology and executive Martin together it is a quality product, social media,” Taylor, “if your important the otherwise nobody says reportILLUSTRATION: ISTOCK technology and individual will use it,” says consultee Laura your strategy perceives there Jim Robertson Overton, managing don’t fit together, will be additional from energy director at learning no learning value from online giant Shell, who technologies 1 programme is content,” says was one of the experts Towards The ranking of London in Cushman going to work.” Martin Taylor. report’s consultees. Maturity. & Wakefield’s European Cities Monitor 2011, a league of the top business cities _ 11
  • 11. I wanted to qualify as a consultant Enhance your professionalism and credibility. After participating in our Consultancy Skills Course you can gain globally recognised qualifications. Consultancy Skills Course ...acquire and develop the skills you need to be a top consultant within your company This course provides a practical toolkit for both internal and external consultants. Helping you to operate effectively as a consultant. Duration: Five day course Dates: JAN 16 - 20 FEB 20 - 24 MAR 19 - 23“I was looking for a qualification to recognise APR 16 - 20 MAY 21 - 25 JUN 18 - 22and accredit my skills and experience, as Venue: London Gatwickwell as giving me extra credibility whilst Course price: £2,295+VATworking with senior managers within thebusiness. The Diploma was the perfectqualification, accredited by the Institute ofConsulting it has the right mix of self study Certificate in Management Consultingand supported learning via the workshops. EssentialsThe tutors are very knowledgeable and the ...involves a short self study assignment followinghelp and support you get to put together Consultancy Skills Courseyour Portfolio and prepare for the examsis phenomenal.” Diploma in Management ConsultancySue Muzolf, us for full programme detailsOrganisational Development Facilitator For further details please contact Carolyn: +44 (0)1293 568817
  • 12. News Study success in the sunshine CMI continues to spread learning Students are pictured below and accreditation well beyond the with Gibraltar’s minister for shores of Great Britain. education and training, Clive77% of those polled by the British Just before Christmas, a raft of Beltran; and Maria AntoniaCouncil for Offices said that an students from Gibraltar qualified Brooks, principal of Gibraltarunattractive workplace would with diplomas in management at College, which deliveredmake them less proud to workfor an employer Level 3 and Level 5. the programme.100% of the top 100 UK companiesnow report on corporate responsibility,up from 91% in 2008. Source: KPMGInternational Survey of CorporateResponsibility Reporting 2011 Olympics boss headlines CMI dinner The Olympic Delivery Authority “It’s fantastic news to have a leading74% of European employees polled chairman John Armitt is to speak at the figure from the Olympics’ managementtrust their manager, while only 51%trust their organisation’s senior annual CMI President’s Dinner, where team speaking in 2012,” said CMIleader, according to BlessingWhite’s he will be this year’s guest of honour. companions manager Daniel Symonds.Employee Engagement Report 2011 The event is hosted by CMI President Tickets cost £99 and can be booked Terry Morgan , and is exclusively for through Miranda Goldstone on Companions. It will take place on 01536 207306. Alternatively email 22 February at 30 Pavilion Road miranda.goldstone@managers. in London. MANAGEMENT SPEAK Black-sky thinking been used in the financial so powerful that they 1. n, v. Considering or press to describe the can’t be contained by9.5 is the number of minutes it takes planning for the worst- bleakest of economic the Earth’s form an opinion of someone face- case scenario. Essentially forecasts. However, Let’s start the fight againstto-face, but an online photo prompts the evil twin of ‘blue-sky some see it di erently, doom and gloom here.a decision – good or bad – in just 5.5 thinking’, this phrase has using it to describe ideas Blast o !minutes. Source: Reputation 24/7 _ 13
  • 13. Agenda POLICY WATCH Gone are the days where looking after human beings conflicted with making money. The way to be truly successful is to be ethical, says CMI policy and research director Petra WiltonThe only way is ethics his year is going to be will wear two faces: one looking Putting on a the best politicians and business T a struggle. Operating backwards and one looking leaders will be seeking to rebuild business face: will you be against a backdrop of forwards. They will have a strong looking both trust in business, which will mean European economic vision and sense of direction for ways this year? being ethical in all matters andinstability, rising energy prices and their organisation, knowing what’s putting people above profit.domestic austerity, with public happening in the marketplace and The government’s responsespending likely to be reined back anticipating what’s ahead. They to executive remuneration willeven further, many will be seeking to will reflect on the past year and be provide an indication of howprotect the delivery of core services inspired by their people to face the far politicians will be preparedand cutting back elsewhere. year ahead. to go down the regulatory By focusing on the core, will Looking back, they will see path. Alongside any regulatorywe finally see more organisations the fate of those who did not act approach, there will be anputting people at the centre of their ethically, such as News of the important role for professionalbusinesses? In our future forecast World (NOTW). The impact of standards, ethics and codes ofsurvey, which asked managers who unethical business behaviours conduct. Indeed, CMI welcomedthey would most like to shadow is that “trust in business has the recent comments of Lordfor a day, Sir Richard Branson clearly eroded and needs to be Heseltine, the Prime Minister’semerged as a clear favourite. In reconstructed,” according to growth adviser, that the UK shouldhis latest book, Screw Business as Andrew Witty, chief executive of have compulsory membership ofUsual, he claims that it is “time to GlaxoSmithKline, addressing trade bodies to raise standards.turn capitalism upside down and the High Pay Commission. At CMI, a key focus overswitch from a profit focus to caring Our headline writers had it the coming year will befor people, communities and the right when they screamed promoting the businessplanet”. However, he argues that “Without trust you are chip value of our own professionala focus on people should not be paper” on my fellow columnist standards and code of conduct,viewed as being at the expense of Simon Caulkin’s recent article as epitomised by our Chartereddelivering profits – as focusing on about the demise of the NOTW Managers. For those politicianspeople makes good business sense. (Professional Manager, and businesses looking to In any new year, the most September/October 2011, rebuild trust and stronge ective leaders adopt the visage page 50). With this in mind, values, it will be time toof the Roman god Janus – they using their forward-looking face, turn to the professions. Code put into practice outcome being a recommendation to the Board The CMI Code of Practice for Professional to expel the member concerned. Managers is a living document. CMI members CODE OF sign up to it, but that is not the end of the story. Board and Committee opportunities 2012 CONDUCT The onus is on members to exemplify the Code Two elected places are available on the in their everyday management activities. A Board for members with experience of complaint raised, whether by another member, operating at strategic level and with a profile a member of the public, a professional body or including previous executive and/or non- LIVING by the CMI itself, alleging a breach of the Code executive director experience. Closing date STANDARDS is thoroughly investigated. for applications is 31 May 2012. Specialist In the past 12 months, three complaints roles on the various committees include the CMI encourages have been submitted and investigated. Professional Standards Committee and the everyday ethics The complaints are administered by the Finance and Audit Committee. Professional Standards Committee, assisted by a group of CMI and IC members who form For more information on the Code and an investigation panel. In two of those cases, elections to the Board, contact Valerie Hamill, the investigators found no case to answer. Institute Secretary, on 020 7421 2707 The third case went to a full hearing, with the or PROFESSIONAL MANAGER _ February/March 2012
  • 14. BR_adverts:250x87_final 5/6/11 14:45 Page 1 OPEN EXECUTIVE PROGRAMMES 2012 Download a Brochure PERFECT T. 01234 754351 PARTNERSHIP Please quote media code DEC100 Bannerman Rendell and Hiscox are here to look after your business I wanted to explore Members get discounted a bit outside my ‘box’ business insurance Call our professional advisors and meeting managers in the CMI/IC department on with radically different 020 7929 3400 or email experiences enabled for a quote me to do this. EDOARDO DI MACCO PROGRAMME MANAGER LEADER, GE OIL & GAS Edoardo attended Innovation Management Our open executive programmes are designed to encourage, to improve and to inspire. With one of the widest choices of management and leadership development programmes, we are sure we have a programme for you. Bannerman Rendell Insurance Brokers, Hiscox Underwriting Ltd and At Cranfield, our story is your success Hiscox Insurance Company Ltd are authorised and regulated by the Financial Services Authority. 8822 05/11 CranAd DEC100[250x87]aw.indd 1 Half Page Vertical.indd 1 01/12/2011 14:23 30/11/2011 11:23
  • 15. Human resources THE PERSONNEL TOUCH The Queen’s Diamond Jubilee means employers face another extra UK bank holiday just 14 months after the last one. Kings of industry are best advised to embrace it – and plan for it, says Alison Blackhurst Royal appointment for Jubilee any businesses will be There are a few ways of payments apply for working on M grateful that diamonds aren’t forever. This managing this – either observe your normal holiday practices and bank/public holidays. The same applies for those employees who year will see another sign o the days on a first-come- have “x days including bank/ extra bank holiday – on Tuesday first-served or business-process public holidays” – typically this 5 June, for the Queen’s Diamond basis, or agree to accept more than applies to those in the retail, Jubilee – just over a year since the norm and plan to operate your customer service or healthcare the royal wedding triggered a organisation with a last-week-of- sectors, which operate while bonus break. Yet there are no December-style skeleton sta or o ces are closed. However, this is plans to make the extra day a shutdown. Whatever you decide, becoming increasingly common as permanent fixture. make sure you plan as soon as the method of calculating holiday Still, there remains this year’s possible. Set clear rules well in entitlements is often easier and jamboree to deal with. Extra advance as to how many sta will fairer to administer if you have bank holidays always prove be allowed to take 6-8 June o , part-time, job-share or fixed-term a conundrum for employers, on what basis you will authorise contracts and so forth. particularly when they drive requests, and reinforce that your That said, tread carefully if so far into a working week that absence policy applies for that you do ask sta to come in. With many sta are moved to take any FIND period, stressing that you will be most of the country o work and bridging days o to secure a long OUT asking for medical evidence from enjoying themselves, you may break. That is the case here: MORE… those who do miss work when they appear mean – and unpatriotic if sta take the three days o As a CMI member, are scheduled to be in. – should you fail to observe following 5 June, they will be you can access templates for a orded a nine-day holiday for the price of just three days from policies, forms, letters and “Tread carefully if you ask staff to their holiday entitlement. contracts from Business HR, plus come in. With many off work, you may So expect a rush for holiday requests for 6-8 June. a great monthly newsletter appear mean and unpatriotic” Of course, some employers the Jubilee. This could cause may be reluctant (or unable to resentment and productivity may a ord) to grant the extra holiday. slump. On balance, and in most Whether they are duty-bound cases, the best advice is to observe to allow it will depend on the the holiday. wording of the employees’ The only solace I can provide contracts. Broadly, there are to English and Welsh employers three types of holiday clause. is that they still have fewer The first states that an holidays than most of their peers. employee is entitled to “x days Scotland and Northern Ireland plus bank/public holidays”. In this already have more public and bank case, you would have to grant (and holidays than England and Wales, pay) the extra holiday. The second yet the additional bank holiday forILLUSTRATION: QUINTON WINTER says the employee is entitled to the Jubilee will still apply in the “x days plus the eight standard UK’s two northernmost nations. bank/public holidays”. In this case In 2012, Belgium has 10 bank you may require the employee holidays; Germany, Italy, Greece to work on 5 June and there is and Austria, 12. And France? Will your staff be no contractual entitlement to A whopping 13. So, as well as joining in with Diamond Jubilee an extra day’s paid holiday – but celebrating that diamonds aren’t street parties? remember to check your contracts forever, many bosses might also to see whether any supplementary remark: “vive la di érence.” _ 17
  • 16. Does social mediahamper productivity?Facebook, Twitter, Google+, LinkedIn – mostof us now use at least one of them. But is socialmedia a threat to business productivity?Kayleigh Ziolo hears two opposing views than shoehorning vague guidelines YES into an existing policy that may be ignored by many anyway. We need to re-instil the ideaRONAN of “reasonable use” in companyKAVANAGH policy in accordance with theCEO SpamTitan technological changes of the pastTechnologies decade. Of course, we must trust our workforce, but the reality is that despite those conscientious employees who spend their timeThe use of social media in the working and producing e ectiveworkplace can hinder productivity. output for the company, a minorityTime spent on personal internet will, consciously or unconsciously,use is simply time not spent abuse their freedom online. I sayworking. Using company-provided unconsciously, because for anequipment for personal internet increasing number of people theuse on company time is not way they use social media is so 56% of the collegedissimilar to running up a massive ingrained in their daily habits they students and youngphone bill for the company – only simply don’t see it as problem. professionalsthe technologies are di erent. Another issue businesses are polled for Cisco’s Non-work-related social media starting to wake up to is security. Connected Worldactivity costs the average SME Education plays a part in this, Technology Reportwith 52 employees $65,000 per but social media contains many 2011 would not joinyear. No one wants a Big Brother holes that cyber-criminals will a company thatculture, yet the reason people don’t happily exploit. As a relatively new banned access tomake lots of long-distance calls on technology that is changing and social media orbusiness telephones isn’t moral, gathering pace all the time, there would find a way toit’s because they know there will be is plenty of user unfamiliarity to get around the rulesrecords leading back to them and exploit. This could have disastrousthey will face repercussions. consequences if viruses, trojans or Businesses that have employed other malware infect a company’sthe flexible measures SpamTitan network, particularly for smallerprovides have noted that simply businesses that will have lessintroducing ways to assess money to address these issues.patterns of social media use, and Keeping your company equipmentletting their sta know that their secure is vital, and implementing ILLUSTRATION: GARY NEILLemployers are able to do so, can restrictions is a small price to paylead to a significant change in web to prevent such occurrences.habits and employees’ approach Would we want to completelyto accessing social media at work. outlaw social media in theOn the basis of this analysis workplace? Of course not. However,managers can lay out a clear, it is vital to give businesses thecomprehensive and flexible policy tools to analyse and control thefor use in the workplace, rather problem as they see fit.18_ PROFESSIONAL MANAGER _ February/March 2012
  • 17. Debate Social media in the workplace is NO about collaboration and increased productivity.ADI GASKELL That’s right, I saidMCMI, Content increased. Researchand Communities conducted by AT&TManager, CMI a couple of years ago supports this, as does a recent study by the University of Melbourne on productivity improvements. No one is 100% productive for a continuous 40-hourweekly period. Productivity for us all comes infits and starts. Allowing people to take brainbreaks when they need to is actually beneficial. Good employees will get the job done in thetime they need to. When we employ sta , weare e ectively telling them we think they areup to the job in hand. We enter a contract ofmutual trust – it is simply bad management tothen say “we’re going to make restrictions onhow you use your computer and keep tabs onyou”. That person is there to do a job, and it isdamaging to behave as if you assume they willnot do so unless watched. Banning does notwork. Oppression leads to rebellion, and peoplewill simply find a way to defy a rule they believepatronises them and makes them feel less freeas hard-working individuals. Security is a valid concern, but to ban socialmedia based on a fear of viruses or malicioussoftware is really just throwing the baby outwith the bathwater. Again, educating sta iskey, but so is trusting that they will have someknowledge in this area as users of social media.Generally they’re unlikely to trust or click onanything at work that they would avoid at home. Rather than see social media as a problemto be tackled, it should be embraced as partof the working culture. It is not the root of allevil – it is simply the tool through which deeperunderlying issues are revealed. If people inyour organisation are inadvertently sharingconfidential or damaging information relatedto the company, you have a problem witheducation, not with social media. Equally, ifpeople are sharing confidential or damaginginformation deliberately, to embarrass, then youhave a problem of employee engagement. It’sa very public view – the press often cite socialmedia as the cause of problems and unrest,rather than just another instrument people use. For more on social networking, turn to ourinterview with Edward Saatchi on page 20 _ 19
  • 18. Edward MCANDREW MEETS… Saatchi The charismatic son of Maurice Saatchi thinks most businesses’ internal communications are dinosaur-ish and broken. Perhaps that’s why he’s pushing a Facebook for firms with evangelical zeal, says Daisy McAndrewIt’s not a face you’d forget – and it’s a story to fly back from the Obama campaign tojust as remarkable. Ridiculously young – but defend my philosophy thesis and then headlooking considerably older with his tangerine back to the States,” he says.beard and frizzy, floppy hair – Edward Saatchi And it was while working on that campaignis being touted as Britain’s answer to Mark that NF was born – under its original name,Zuckerberg. His communications company, The National Field Programme for the ObamaNationalField (NF), promises to take social Campaign. The need, says Saatchi, was clear:media into the world of business and change as the campaign grew, and with it the numberit as much as it has changed our private lives. of o ces and sta , the Obama campaign teamAnd, with a $1 million turnover in its first year, didn’t have a system for all the volunteers andSaatchi’s ambition looks right on course. “It’s workers to stay connected.becoming the Facebook for enterprise,” says “We were determined we’d be the first ‘real-Saatchi. “It’s got so much momentum behind time campaign’,” says Saatchi, “meaning we’dit – there’s no going back.” know every minute everything that was going As the son of the writer Josephine Hart and on – so we created NF.”advertising mogul Maurice Saatchi you’d have The “we” is his fellow NF foundersexpected Edward to stay in London and use Aharon Wasserman and Justin Lewis –his considerable contacts, but the 26-year-old both managers on the campaign – managinghas got to where he is today via an altogether 150 people each, many older than them.more convoluted route. They needed to know, immediately, the A self-confessed “Obama nut”, he went state of their campaign. Getting feedbackto the US in 2008 to help Barack Obama’s from door-to-door campaigning andpresidential campaign. It sounds glamorous, doing it via emails was ine cient: bybut exhausting. “I was doing a couple of the time the information reached HQmaster’s degrees in Paris and would have it was out of date.20_ PROFESSIONAL MANAGER _ February/March 2012
  • 19. _ 21
  • 20. At first, only the top trio used the new system – a sort of internal social network. But soon the whole campaign was using the system to communicate. And it formed part of what was credited as the first “new media” presidential campaign – a million people signed up for campaign text messages and 25% of Obama voters were linked to the campaign via social media. However, it was only when his former Obama colleagues moved on to jobs in other organisations – and complained bitterly about going back to using “There’s something about the social element that means people stay really friendly and it doesn’t get mean-spirited” emails and intranets to communicate with colleagues – that the three young men realised they had a business on their hands. “We patented what we had and got on with it,” says Saatchi. When I venture “What’s wrong with companies using the intranet?”, Saatchi looks aghast: “The intranet is dead, it was created in the 1990s, it’s not fit for purpose.” Oh, okay then. “Intranets are not remotely interactive and they don’t engender a feeling of community,” insists familiar with how Facebook works and will therefore Saatchi. “It’s just top-down information – there’s quickly get the hang of navigating NF. no sense that the people on the ground can give And, even for those few who don’t know how to use feedback. It’s not a management tool at all, it’s just a Facebook, “there’s a positive attitude and they want place to go and get basic information. I’ve never heard to learn,” he says. But, he adds, he hasn’t come across anybody say that their intranet is up to date.” anyone who doesn’t know how to use it at all yet. So, if it’s goodbye intranet, what can you expect Although there are already US firms who “do from NF? social” for companies, none, Saatchi believes, o er Well, it looks and feels just like Facebook, which is what his does. no coincidence – one of the founders of Facebook is So, like Facebook, there are streams of people on the board. The theory is that everybody is already telling each other stu . However, unlike the normal PHOTOGRAPHS: CHARLES BEST22_ PROFESSIONAL MANAGER _ February/March 2012
  • 21. Interview something about the social element that means people stay really friendly and it doesn’t get mean- spirited.” On the Obama campaign, the “numbers literally exploded” after they introduced the leaderboard – and Saatchi claims a 40% productivity increase in his clients. “It just unlocks something in people – they want to push themselves to the limit and it lifts the whole company.” As a new NF client you can expect your website to be tailored to the culture of the company. “Some chief executives like transparency,” he says, “as it leads to competition. Others want people to be blinkered so they focus on the job in hand, completely private to people outside.” But one thing he’s adamant about: everyone should be providing more information about the company and what it is doing, how it’s doing it and how well it’s doing it. “The idea that you should organise companies based on the quarterly report is dinosaur-ish,” rails Saatchi. “It should be real-time, it should be daily.” He is also evangelical about feedback. “Most companies let their employees down by not giving nearly enough,” he believes. But his favourite feature is Pluses and Deltas – not a new idea and one that’ll be familiar to many, but, as a rule, not on the company intranet or similar. “Obama uses it with his daughters and calls it Roses and Thorns, and he also uses it with his Cabinet and calls it Pluses and Deltas,” Saatchiversion your stream is based on the hierarchical says. The idea is simple: you say something positiveset-up of the organisation – so if you’re the chief and something you want to change. In Obama’sexecutive you get a certain stream, if you’re the new team, they’d sit round and ask the intern you get a di erent one. When they put them on the site they’d be “It understands the hierarchy of the organisation, private for everyone below them and visiblewhich is important,” says Saatchi. “A lot of social for everyone have said: ‘let’s make the system flat, kill middle “It unlocks something that isn’t there when youmanagers’ – but, from our experience, if you want to do it face-to-face,” and he says it becomes addictivebe a real bottom-up organisation you need to have for chief executives, who can see everything said,layers between the di erent people so you can funnel but see it in order of what their closest subordinatesinformation up and down the chain.” say first. So what type of information are you funnelling? And this is a young man with an unfailing “Many people tell us they gave a presentation to confidence in his product and where it is headed.their colleagues and six months later realise no one “The power of social media has brought downhad a clue what they were talking about, or everyone dictators and will change the way companiesinterpreted what was said in di erent ways.” The work,” he says. He sees it as the democratisationtheory being that in a proper two-way conversation of the workplace and it’s not to be underestimated.everyone will “get” everything. Rather like social media more widely. Adds Saatchi: “It’s only when you can see the data in “People definitely underestimatea ‘beautiful, elegant way’ that managers can see what’s the importance of social media andgoing on in their organisation – and NF will present Milestones they misunderstand it,” he adds.that data in that way. It paints a story with numbers.” Edward Saatchi’s key dates “It’s not the information that social And the leaderboard is one example of that. Saatchi media brings with it, but the speedis very excited about his leaderboard. 2006 Graduated from Oxford with which it’s delivered that’s the University with a degree in literature He dismisses normal practice as “sad managers 2008 Graduated from Paris- crucial factor.”typing up leaderboard emails once a month – saying Sorbonne University with a degree “Speed kills,” says Saatchi.‘you did really well this quarter, well done’. That’s in philosophy and economics “Businesses can take advantageuseless,” he claims. 2008 Moved to the US to help Barack of that because they can see trends Obama’s presidential campaign His version is real-time – you can see who’s up 2009 NationalField was launched and get a feel for what’s going on.and who’s down all the time. “People go nuts for in the US Or they can be wiped away.”it,” he says – adding that it isn’t negative. “There’s 2011 NationalField expands to the UK You have been warned. _ 23
  • 22. Thought leadership24_ PROFESSIONAL MANAGER _ February/March 2012
  • 23. Thought leadership How to take a chance Grasping probabilities and game theory is as key to success at the office as it is in the casino, writes Ben WalkerDid you hear the amazing story of the woman who to do with careers, management and leadership? A lot,went on holiday and met an acquaintance by chance because building a career, managing and leading rely,on the beach? Odds on, you did. Statistically, it’s in part, on your willingness to take calculated risks.not in any way amazing. “A tendency to drastically And to take calculated risks, you first need to be able tounderestimate the frequency of coincidences is a calculate them. Most people can’ characteristic of innumerates,” says the sharp-tongued mathematician John Allen Paulos in his book Calculating chanceInnumeracy, which contends that many otherwise There are two key variables to consider when calculatingeducated people are comfortable with – even take risk: the odds and the stakes. To bring this to life, let’spride in – their innumeracy. “If you don’t specify a consider the fictional example of Dave, a manager in thepredicted event precisely, there are an indeterminate creative sector. Dave has a vacancy for a designer. Twonumber of ways for that event to take place.” Paulos candidates stand out – both have equal technical skills.takes us through the paradox of ostensibly unlikely Jim has more experience and an urbane manner; Donnaevents actually being very likely. If there are more is brusquer, but with brighter ideas. What should Davethan 23 people in a room, he writes, odds are that two do? First, he must consider the risks associated withof them will have the same birthday. If two American each hire, and the stakes. The main risk associated withstrangers meet on a plane, he adds, there’s a 99% chance hiring someone is that they leave, either voluntarily orthey will be linked by a sequence of two intermediates. by compulsion, because they are not able to do the job,It’s certain, he says, that at least two people living in because the job doesn’t suit them, or because they don’tPhiladelphia have exactly the same number of hairs on suit the people they work with. Research shows that ittheir head. Interesting? Perhaps. But what’s all this got is rare for people to be let go during their probationary _ 25
  • 24. Thought leadership period due to poor performance: in almost all cases, that she is a better designer, so has more potential a lack of skills is weaned out at the interview stage. upside than Jim. If you never hire a Donna, it’s It’s social clashes that are usually responsible for likely that your designs might be a bit safe, and an early termination of employment. Although lack innovation and edge. Sometimes managers Donna has better skills, Jim is almost certainly do have to take risks. This is where the art of good enough to do the job. Therefore we have to taking a chance – choosing what risks to take see Donna as a considerably bigger risk. Given and when – comes into play. her sometimes brusque tone, we might rate her Shari Peace, president of professional speaking as a 30% chance of upsetting her co-workers to firm Peace Talks, suggests six tests to see whether such an extent that her continued employment you should take a chance on a Donna-style risky is untenable, regardless of the quality of her investment (see box, “When to keep the dice work. The Chartered Institute of Personnel and in your pocket”, page 27). If the risk you were Development says the average cost of replacing an considering taking falls outside Peace’s blacklist, employee is £7,750, once associated costs of staff you should almost certainly take it – even if you feel turnover are accounted for. uncomfortable about it. “Every day, ask yourself what you’ve done that is daring or that is a bit of “the best way to find a strong a stretch,” the psychologist and business coach Gary Leboff tells Natural Health Web. “If, at the current of good luck is to swim end of each day, you can find just one thing, you are with the right people” moving, but if not, you are becoming increasingly limited and your horizons are getting smaller.” Indeed, the risk of the status quo is often r=sxp overlooked. “Inertia is often mistaken for Mathematicians calculate risk (r) by multiplying sanctuary,” says Professor Morgan W McCall the stake (s) by the probability of the event Jr, author of Whatever It Takes, which explores occurring (p). In Donna’s case this is 30%, which managerial decision-making. “Risk can be is expressed as 0.3. associated with staying the same,” he tells So, in Donna’s case, the monetised risk of hiring Professional Manager. “The world is going to her is £7,750 x 0.3 = £2,325. In other words, the change around you. Given that, I don’t know average cost to a business of hiring Donna (or a how you avoid risk. The trick is to make that similar personality) would be £2,325 – because risk a calculated one – not a wild one.” three times out of ten their employment would be terminated and would cost the organisation £7,750. Return on luck Let’s go back to Jim. We know that he’s urbane, So how do you do that? “That’s the tricky IllustRatIons: sIMon PeMBeRton polite and charming, and that the chances question,” McCall admits. “There are always of his not being able to do the job are remote. things you can do to lay the groundwork to be Therefore, we might reasonably calculate that more successful.” The reverse is also true – you the probability his employment doesn’t work out can exacerbate the negative return on a piece of is as low as 4%. Therefore the monetised risk of bad luck. In another of his books, Off the Track, his hire is a fraction of Donna’s, at £310 – hardly a McCall examined the reasons managers fail. king’s ransom. Easy equation then? Hire Jim. “When we looked at the mistakes that derailed But maybe it’s not that easy. None of the risk people, we always found that they had contributed assessment above accounts for the possible in some way to their own downfall,” he says, “even benefits to the firm of choosing Donna. Remember if the initial problem was just bad luck.”Odd odds Bob Morton (see page 28) thought the chances of his four children beingevenly split between boys and girls was 1 in 2 (50%). Right? Wrong. In fact, it’s only 6 in 16 (37.5%). Graphic: Possible combinations of four children26_ professional manager _ February/March 2012
  • 25. This influence human will has on the outcomeof random events is known as return on luck.Sport fans will recall the quote by the SouthAfrican golfer Gary Player, who, in response toa spectator’s gibe about his holing a “lucky” shotout of a bunker, responded: “The more I practice,the luckier I get.” Luck is, by its very nature, ahaphazard happenstance that occurs regardlessof one’s skill level – but Player articulatedsuccinctly that the best golfers make the mostof any luck they get. Hit the ball consistentlywell and, sometimes, you’ll make a birdie fromthe bunker. Prefer poker to golf? The analogueis winning a large pot when you have a slightlybetter flush than your opponent, and foldingcheaply when your pair of queens are edgedout by your adversary’s kings. Like great golfers and poker players, “luckier”managers are not luckier at all – they simplymaximise the benefits of the good luck they dohave and minimise the costs of the bad. Thisimportant concept of return on luck is exploredin detail in the management tome Great by Choice. The book analyses the fortunes of so-called“10X companies”, firms that outperform thebenchmark for their industry by ten or moretimes. The co-author, Jim Collins, found thatleaders of those companies were no more likelyto get more luck, or luck at a more advantageous When In the film, a truly stunning blonde woman walkstime, than those at an average organisation. “The to keep into a bar accompanied by four of her friendsreal di erence,” writes Collins, “wasn’t luck perse, but what they did with the luck they got.” the dice who, while attractive, are not as beautiful as their flaxen-haired companion. Russell Crowe’s Luck is outside our control. Return on luck in your character, the mathematician John Nash, whois within it. So what is the best way to improve pocket would later win the Nobel Prize for Economics,our return on luck? Great by Choice is clear. It’s International was seated with three male friends. He arguedpeople. More specifically, it’s working with the business speaker that, rather than all hitting on the blonde, as singleright ones. The book refers to a speech made by Shari Peace has men might normally do, they should all ignore theGordon Binder, a chairman of biotech specialists six tests for risk blonde and each chat up one of her friends. TheAmgen, a 10X firm. Binder told the audience of taking. If any film explains that, if they all went for the blonde,the defining moment in his company’s history. He apply, don’t they’d just get in each other’s way, badger her anddidn’t choose a new territories rollout, a stellar roll the dice. none of them would score. Nor would they then bepromotional campaign or a corporate restructure. Double or quits: able to approach one of her friends – as no womanHe chose the hire of a Taiwanese scientist. There’s a good likes to be second choice. The film is right thatFu-Kuen Lin worked tirelessly on cloning a gene, chance you could the “all chase the blonde” strategy is not a Nashbeing mocked on the way by his colleagues, who lose everything. equilibrium. “But,” argues author of management Runt returns: Youthought the project was doomed to failure. The book Game Theory at Work Professor James have to bet a lot to winoutcome was rather di erent – Lin’s work led a little. Miller, “A Beautiful Mind should be strippedto the first billion-dollar biotech blockbuster. At God’s mercy: There of its Oscars because the outcome that Crowe“The best way to find a strong current of good are too many factors proposes in the movie is not a Nash equilibriumluck is to swim with the right people,” writes outside your control. either. Each of the men would regret a strategy ofCollins. The trick is to know how to find the Lins. Losing battle: ignoring the blonde if everyone else ignored herUnderstanding game theory helps. You feel the odds too. Sure, it might be reasonable not to pursue are against you. the best-looking woman in the bar if many otherGame theory No second chance: men are hitting on her. If, however, everyone else It is impossible to repairIf you have seen the film A Beautiful Mind, you’ve ignored this stunning woman, then obviously you the damage if the puntbeen misled. The most famous scene from the doesn’t come off. – assuming you like women – should go for her.”film tries to bring game theory, and specifically Blind bet: You have This understanding of the Nash equilibriumNash equilibrium, to life by applying it to dating. to take the risk before is as useful for businesspeople as it is for singleNash equilibrium is an important concept – it having a chance to men, because it can help you make an outcome whereby no player regrets their prepare for and/or Remember that the biggest determinant of yourstrategy given what their opponents have done. evaluate it. return on luck is who you work with. Nash, and _ 27
  • 26. Thought leadership “the job candidates who would be happiest with your salary would be the candidates who are of the lowest quality – since the marketplace values them the least.” Advertise the job below budget and you have played the game poorly because you have not considered how the other players – the candidates – are likely to react. You have alienated strong candidates even though you may have had the resources to poach them. Better just to advertise the job at £40,000 and see where it takes you. You may or may not be able to attract your favourite candidate, but at least you will have had the chance to meet them and win them over, so you can be satisfied with your strategy. Alienating candidates with a poor initial salary proposal is as futile as all four single men ignoring the gorgeous blonde in the bar. It is simply bad science. Don’t be like Bob Bad science is everywhere. In his entertaining book How to Take a Chance, mathematician Darrell Hu recalls the story of the Morton family, who had two daughters. Like many other 1960s families, the Mortons considered two boys and two girls to be the ideal family. Bob Morton, the father, longed for some boys to balance his brood. “After the girls were born,” he told Hu , “we begangame theory more widely, helps you find andretain the best people. “Advertise the job below budget and Let’s imagine your company faces a budget you have played the game poorly –shortfall and needs to make cuts to its salary bill.The finance director o ers you two options: cut you have not considered other players”all salaries by 10% or make 10% of your workforceredundant. In his book, Miller advises that youtake the latter strategy, as hard as it may be to to doubt that we’d come out two and two in thestomach. Why? Because, were you to choose the end. But I have figured it out – our chances weresalary cut option, those sta ers who could find fifty-fifty in the beginning, so of course they stillbetter pay elsewhere would take another job, are. Because boys are just as likely as girls.” In fact,leaving you with the weaker employees. Given the only part Bob was right about was the last bit –the likely outcome, you would be unsatisfied with barring minute di erences in the birth and survivala strategy of slashing pay – you’d lose your best rate, boys are as likely as girls. Yet he was toosta – so game theory tells us instead to lay o optimistic at the beginning – the chances of four10% of your sta , retaining the stronger ones. Of o spring splitting evenly is only 6 in 16, or 37.5%course, your morals and legal duties will influence (see graphic, page 26). And there’s worse news foryour eventual policy, but it is important that Bob: the chances of the two unborn o spring bothyou understand how game theory helps solve a being boys is just 1 in 4 – 25% – even assuming thatdilemma in its rawest form before you account Bob is not genetically predisposed to generatingfor other factors. girls, which his record so far suggests he might be. “There’s more to this dark mathematics,” says That there are so many Bobs in the world is,Miller. When you want to hire a key executive doyou state a salary and, if so, what level do you set Further perhaps, depressing. Yet it can be used to your advantage. If your competitors for jobs andit at? Game theory suggests that, even if it feels reading contracts have no understanding of probabilities,counterintuitive, you should set the salary at the Game Theory at Work return on luck and game theory, you need onlyhighest you can a ord, rather than the least you by James Miller a rudimentary grasp to command a massive Great by Choicefeel would be enough to fill the vacancy. Let’s advantage over them. As McCall remarks, some by Jim Collins andsay you want an IT team leader. Your maximum Morten T Hansen risk taking is sensible: “People who just hunkerbudget is £40,000, but, to keep some in reserve, How to Take a Chance down wake up one day and see that the world hasyou advertise the job at circa £35,000. Three good by Darrell Huff moved somewhere else.” Given the benefits ancandidates earning £36,000-plus decide not to Innumeracy understanding of risk can bring, ignorance isn’t aeven bother applying. “On average,” writes Miller, by John Allen Paulos chance worth taking.28_ PROFESSIONAL MANAGER _ February/March 2012
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  • 29. In practice What a day for a daydream Each day of the week has its own personality. Wise managers shape their business to fit, writes Samantha LysterThey regulate our very existence. because the participants were thinkingAnd while we cherish some and hold back with ‘memory bias’ – a tendencysignificance for others, we accept the to recall the worst incidence of an eventdays of the week without question. we’ve experienced before. Mondays areHistorians are unsure about who exactly stereotypically depressing, so thecame up with the idea for a seven-day test group simply recalled theirweek as a way to mark the passing of worst Mondays.time. The late Roman Empire had a hand Motivation expert Andrew Risner, whoin it, as did the Christian church – which coaches management teams through hisused the Bible as source material: God, business Empowerment At Work, sayswe’re told, created the world in six days that Mondays are a great day to improveand then rested on the seventh. your position in a company. The trick is Had he chosen a midweek break instead to wait until after lunch. “I often adviseof waiting until Sunday, it is possible we people to book in a Monday afternoon towould all be sighing into our breakfasts discuss their role with their managers oron a Thursday, rather than a Monday, to talk about a new position,” says Risner.morning. As it is, Monday gets the groans. “The reason is that people are already inMonday is no di erent to any other planning mode. Once they get the morningweekday in the simple regard that most out of the way they are then thinking aboutof us have to do a full day’s work; rather what has to be done next, and so it’s a greatit is because it immediately follows a “Workers feel at opportunity to tap into that mindset.”break that it is so disliked. London Schoolof Economics researcher Alex Bryson their most stressed Charlie Mullins, managing director of one of the UK’s largest plumbing firms,says that we are less welcoming of any on Tuesdays” Pimlico Plumbers, and one of Channelday on which we are due to restart work 4’s Secret Millionaires, agrees withafter a break from our employment. That Risner. For him, Monday is the besthappens to be Monday for most of us. the soft downy duvet of Sunday. Yet there time to discuss work issues. “I approachYet the interesting thing is that, not is no evidence that people are actually a Monday with total enthusiasm,” heonly are Mondays unloved, they are predisposed to worse moods on Mondays. reveals. “It’s the day that sets the tonealso unproductive. Indeed, Charles Areni of the for the rest of the week. Bryson gathered together the results University of Sydney and Mitchell Burger “If sta want to discuss their work,from various studies on work productivity of the NTF Group say Mondays are not I would rather get it out of the way onto see whether days of the week had any as depressing as people imagine. They a Monday afternoon.”influence on levels. One clear outcome, not conducted a survey where people were Yet while Monday may have just causesurprisingly, was that productivity levels asked to give a day-to-day account of to shed its Manic tag, perhaps another daywere low following a break. “It takes time,” their moods, which remained, on average, is ready to wear it: Tuesday. The Centrehe says, “to get back into your workflow.” the same throughout the working week. for Advanced Spatial Analysis is running One might assume that this productivity The participants were then asked to a project called Mappiness. Some 45,000deficit on the first day of the working week recall their moods from that week. Many people have downloaded the centre’sis down to employees being grumpy and misremembered: the majority stated application that asks them to record theirpining – even daydreaming – about the that Monday was when they were feeling mood on an hourly and daily basis. Leadfun and frolics of Friday and Saturday and most low. Areni and Burger believe this is researcher George MacKerron says it is _ 31
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  • 31. In practice suggests Wednesdays – as this allows a says. “By planning the week ahead on a team to absorb and review the training Friday, it stops stress from building up.” before the end of the week. Mike O’Brien, Roe is one of an increasing number of senior consultant with training provider managers who sort out work on a Saturday ILX, also recommends Wednesdays for morning. But, far from seeing this as a getting sta on board with new practices source of stress, he feels that it actually and policies. “They are no longer mopping balances out his work. “It’s one of the most up and they still have two days ahead of productive days for me,” he says. “That them to finish their week’s work, and so means I can enjoy my Sunday knowing on a Wednesday they can take a breath that on Monday I’m not firefighting.” and be completely focused,” he says. Roe is not the only one enjoying his Yet both Roe and O’Brien agree that the Sunday. Researchers at the University best day for training depends on the of Vermont say it is the world’s favourite working patterns of the company and day. The team analysed 2.4 million blogs that, for some, Thursdays are the better to find out which days of the week we love candidate. This is certainly the case for the most. Sunday came out tops, perhaps global IT consultancy Xceed. “Thursdays because it is the only day when one can are far enough into the week for all key wear pyjamas in the afternoon. deliverables to be well under way and under control,” says its services director “Thursdays are the Dan Russon. “Crucially, it puts people back into their roles with the training optimum day for an fresh in their minds. It’s beneficial to bring office fling” the classroom back into the day job as soon as possible, so that the lessons learnt can be applied in a real environment.” Russon adds that for Xceed, as with soon a Tuesday morning when people are many other companies, Friday is the dayleast happy at work. MacKerron is unable for tying up loose ends. But while manyto o er an explanation, but a survey might be mentally tasting the first sips ofconducted by the nutrition supplement a cold beer while putting the week to bed,Bimuno o ers some insight. Roe says managers could be missing out The results of the survey revealed that on a good day to kick o the next weekworkers felt most stressed on Tuesdays. with. “Friday is when we like to reflect onThe majority of respondents said the what has happened that week, but alsosecond day of the working week was the to prepare ourselves for the next one,” heone on which they make the most phonecalls and on which they are most likelyto work through lunch. It is also the day GOOD DAYS AND BAD DAYSand the time when people are most likely Monday that bosses were more Moore-Ede says Fridaysto look for a new job, turning Tuesday Good day for: buying receptive on a Wednesday. are not good for making camera equipment. major life decisions.mornings into an opportune time for Shopping portal Extrabux. Bad day for: commutingboth prospective employers and workers. com found that cameras by car. Most road accidents Saturday Anton Roe, director of education were 4% less expensive happen on Wednesdays, Good day for: sendingand training recruitment specialists on a Monday. according to vehicle out email marketing management firm Velo. campaigns. 60 SecondAlderwood Education, says that its Bad day for: feeling Marketer magazinefour recruitment sites get the most hits well. Monday is the most Thursday says that, increasingly,on a Tuesday morning. He adds that common day to stay away. Good day for: an office fling. managers are checkingAlderwood’s sites are not alone and that Thursday is the optimum work emails on a weekend. Tuesday day to make love, accordingMonster has reported the same behaviour. Good day for: booking to a London School of Bad day for: binge drinking. “It means that we are more likely to post business travel. Economics report. The British Medicalnew job adverts around that time,” he says. says that Journal reports the number But Tuesdays aren’t just about stress, most airlines post domestic Bad day for: holding of people with alcohol fare sales on a Monday a meeting outside. An poisoning increases byfrantic phone calls and disloyalty. evening, which leads to a average 2.97mm of rain falls two-thirds on Saturdays.Dr Angela Carter, an occupational Tuesday morning scramble. on Thursdays in the UK.psychologist at She eld University’s SundayInstitute of Work Psychology, says Bad day for: an office fling. Friday Good day for: sending We have the least sex on Good day for: binning personal emails. Accordingthat Tuesday afternoons are a great Tuesdays, according to an the fag breaks. If you quit to web research companyopportunity for introducing new ideas. NOP health survey. smoking on a Friday, you eMarketer, open and click“People have caught up on their work, have a better chance of rates are higher on Sundays.but are not pressed to complete tasks. Wednesday keeping off the cigarettes. Good day for: asking Bad day for: a quiet trip toThis is a great time for discussion.” for a pay rise. A survey Bad day for: making key the shops. Verdict found So what of the remainder of the week? by recruitment firm decisions. The 24-Hour that 53% of the populationWhen it comes to sta training, Roe Office Angels revealed Society author Martin hits the shops on a Sunday. _ 33
  • 32. Life savers With the rules due to change in October, how will employers cope with their new duty to fund encourage, now almost their employees’ retirement? insist, those in workPhilip Smith goes in at the deep end to save into private funds for their twilight years. The modest state pension simply won’t be su cient, even when workers finally qualify to receive it. It’s tough persuading those in their The idea of a pension is far from new, twenties, probably with a student loan to of course. The first organised scheme, for pay o , to start putting money aside each Royal Navy o cers, was launched in the month to finance their retirement in 50 1670s. But it wasn’t until the 1908 Old years’ time. With youth unemployment Age Pensions Act that we saw a means- high – nearly one million people between tested state pension payout for those the ages of 18 and 25 are out of work – over 70. The state pension grew in both and those in work seeing wage rates drop size and scope of qualification until it in real terms, it’s more likely that cars, became the default means of financing holidays and rents will take priority over retirement for the masses. And that’s saving into a pension fund. when it became unsustainable. It’s not just younger workers who are The latest Pension Act sets out how failing to make adequate arrangements. the UK plans to address the issue. It According to the O ce for National starts to come into e ect in 2012 Statistics, the number of people paying and the onus is on employers to into occupational pension schemes is run and manage in-house qualifying at its lowest level since the mid-1950s. pensions schemes. They not only Recent research by Baring Asset have to enrol eligible sta into the Management revealed almost half (48%) scheme but must also contribute of UK workers have never reviewed their to it. To start with that will pension plans. They should; estimates be 1% of the employee’s vary as much as annuity rates, but the salary, but by 2017 that consensus is that you’ll need £100,000 in will have risen to 3%. your private pension pot to provide £500 Unless they have opted out, a month gross income. Far too many are the employee will also unaware that their fund is not on track to have to contribute finance that dream retirement. – 1% to begin It’s as much a worry for the with, rising government as it is for individual to 5%. savers, as it struggles to find ways to address the looming pensions crisis. The analysis is stark: too many are saving too little. With life expectancy rising and final salary schemes in their death throes – due to increasing liabilities from a diminishing fund – successive governments are looking at ways to first34_ PROFESSIONAL MANAGER _ Winter 2011/12
  • 33. In practice “Even if a business already has a workplace pension scheme, it may have to change to comply with the new law,” PENSION PLAN warns chartered certified accountant The basics rates), although Jo Nockels from TaxAssist Accountants. ● Starting in employees can Some employees will be exempt: October 2012, opt out. and due to be ● You will also those already in a qualifying workplace phased in over have to make pension scheme, those under 22, those four years, every payments into over state pension age and those business will their fund. who earn less than £5,732 a year in be required to ● At least 8% offer a company of employees’ today’s prices. Sta can opt out, but pension scheme earnings will have the government is candid on this: to employees. You to be paid into the “The expectation is that inertia will be allowed scheme, made up will lead many people to remain to certify any of an employer existing company contribution of automatically enrolled, just as inertia pension scheme 3%, an employee today appears to be an important reason that complies with contribution of 4% for a lack of pension saving by many the new pension and tax relief of 1%. people,” says a Department for Work rules. Alternatively, you can start What you need and Pensions spokesman. your own new to do The new pensions duty may be good scheme to meet the ● Review any news for the employee, and for the criteria. The final existing schemes country. But it’s not such good news for option is to use to establish the government’s whether they employers, as it’s down to them to set up new, independent, qualify under the schemes and manage the contributions. low-charge, trust- new pension rules. Too few, it seems, are prepared. “Most based scheme ● Decide what small employers simply have no idea called the National type of pension Employment arrangement to that they’ll be required to comply Savings Trust implement, either with the new duties from 2016 at (Nest). Nest or an existing the latest,” says a spokesman for ● When you have qualifying scheme. the Institute of Directors. to start depends ● Review the new on the number cost requirements And it will cost. When a company of employees in for employers has to start introducing the scheme the company. to make a 3% Check at minimum pensionduties contribution to“Even if a business already has ● You will be legally obliged to enrol make sure theya workplace pension scheme, it are affordable. employees aged ● Ensure yourmay have to change to comply between 22 and 75 who earn more HR and payroll departmentswith the new law” than £5,715 but less than £38,185 each can cope with the increased year (at current administration. depends on how many sta it has. A firm with, say, 55 employees will have to introduce it by April to July 2014, while a firm with 45 sta can wait until February 2016. That in itself is unfair, says the BIG BOYS GO FIRST British Chambers of Commerce. It added that a small business which The new pensions duty rolls is due for auto-enrolment a year before out to the largest organisations a competitor will face around £960 first – check our ready reckoner more in contribution costs than below to work out when it comes its rival. into force for you. Be warned: doing nothing could see you in the dock. “Business Staff Implementation ILLUSTRATION: PAUL BOSTON owners can face fixed 800+ 1 Oct 12 – 1 Oct 13 penalties of at least 250-799 1 Nov 13 to 1 Feb 14 £400 and escalating 50-249 1 Apr 14 to 1 Jul 14 daily penalties of at least £50 or even Fewer than 50 1 Aug 14 to 1 Feb 16 imprisonment for New businesses non-compliance,” starting after 1 April 1 Mar 16 to 1 Sept 16 warns Nockels. _ 35
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  • 35. Record your development on CMI’s online CPD system, www.onlinecpd. Masterclass 38 Ask the experts 40 Book reviews 45 Latest events 46PM PROFILE an o shore initiative to India, with a view to moving 50%Karen Taplin of production o shore.From Deutsche Bank to Williams Lea, Karen Taplin CMgr has been at thehelm of development, resulting in Williams Lea’s leadership curriculum in I then looked for newpartnership with CMI. She explains why CPD is so essential in the organisation learning and development opportunities withinI cut my teeth in learning Williams Lea. I took overand development in the the in-house managementbanking sector. I was certification programme,designing and delivering a host where I could not only trainof training and development on all the management theory,programmes and took on the but also bring it to life withrole of regional training and operational experience.developing manager at This was a fantastic andDeutsche Bank. Running rewarding managementpresentation services in programme, which producedinvestment banking was like great success stories ofrunning a business within a career progression.larger business. I worked inpartnership with the local The learning andoperational managers to set development teamup presentation services engaged with CMIdepartments across Europe to strengthen theand Asia Pacific. programme with an o cial accreditation.During this time, the I had never done anythingteam in London grew from of this kind, so it was great10 to 175, operating 24/7, to work with CMI, whichwith smaller teams in provided me with the supportEurope and Asia Pacific. and expertise I neededIt was a very exciting time, to tailor our in-houseboth for the business and management certificatefor me. We were at our peak programme to meetduring the dotcom and o cial Level 2telecommunications boom, accreditation.before the various economicchallenges came to the fore. Want to be a With the leadershipLike most businesses, we Chartered Manager? curriculum, we have To find out whether the Chartered Find out moreneeded to rethink and question Manager award is right for you, Karen Taplin is taken a blended approachthe way things were done. I head to learning solutions to learning. CMI lendsstarted to learn how to lead cmgr, email cmgr@managers. manager at Williams extra credibility, providingthrough a downturn, while or call 01536 207380. You Lea. She is leading the professional guidancemaintaining the same level can read more about the benefits the Williams we need to give our employeesof service from the teams. on the CMI site and take our new Lea leadership development towards a relevant self-assessment questionnaire to curriculum in professional qualification thatAt this point we recognised receive a personalised report and partnership with is in tune with the modern identify the most suitable award CMI, which aims tothat our business model business environment. route for you. For more inspiration, provide employeeswas no longer fit for see our recent successes at with qualifications We are starting to see realpurpose. We began to look for the modern success stories as employeesat outsourcing and I moved This also highlights members workplace. To find move around the businessacross to Williams Lea. We who have renewed or gained out more, visit www. and are promoted intomanaged the teams alongside Chartered Manager status. leadership roles. _ 37
  • 36. Practical hints and tips to help you on your management journey MasterclassKNOWLEDGE TRANSFERLOST THATLOVINGFEELING?As new-year celebrations recedeand Valentine’s Day looms large,now is the perfect time to recapturethe romance with your role. CaitlinMackesy Davies tells you howThe holiday season is the peak timefor relationship breakdowns. And careerrelationships can also su er from amidwinter malaise. Even more so whena weak economy seems to point to poorprospects elsewhere, and it is easierto keep your head down and stick itout than to confront your workplaceworries head-on. But when you decide to stay in anunsatisfying role, says John Lees, authorof How to Get a Job You’ll Love, you are“accepting a psychological contract,which is: ‘My work will now be dulland I’m going to be stuck in a rut.’ Thisdoesn’t need to be the case. There areactive strategies you can use to review,refresh and to initiate change.” So, here are Lees’ tips on how totackle the most common career new team. In HR-speak this is called were your expectations of this job or thisrelationship complaints: “job sculpting”. organisation when you started? How far have they been fulfilled? Think of work“I’m bored” “I don’t feel appreciated” as a compromise between what youYou should review your role every six If this is your issue, you are probably want from life and what your employeror 12 months, whatever your happiness not getting feedback and don’t know wants from you, and review what you it, says Lees. “You need to see how if you are doing things that are valued. If the employer is getting the better partyour job has changed and what have you Find a mentor (ideally someone two or of the deal, it’s time to renegotiate.added to it.” He suggests asking yourself three rungs above you), coach or work“What have I learned?”, “What’s new?” buddy to give you two important bits of “I’m just not happy” ILLUSTRATION: THE TREEHOUSE PRESSand “Where are things going?” feedback: what are you doing well that is A very general complaint, cautions important to the organisation, and how Lees, uses language that doesn’t mean“The spark is gone” does the organisation see you? anything to employers. It’s much betterEvery job is a learning curve, and once to say: “Here’s something that will helpyou reach the top of that curve you will “We don’t want the same things me to develop the organisation.” If yoube de-energised because things start any more” want to change your role, using win-winto repeat themselves. That is when One common reason for work language is vital. It may not work firstyou have to look at what you can add disturbance is a role mismatch, when time, but employers value the positiveto the role. You may be able to adjust people might say: “This isn’t what impulse behind it and eventually runyour workload, renegotiate the focus I expected to be doing.” This is an out of reasons not to let you act onof your work, or attach yourself to a important career conversation – what your ideas.38_ PROFESSIONAL MANAGER _ February/March 2012
  • 37. Masterclass WHAT I’VE LEARNED Jo Morris Allied health professional lead for learning disability services at Coventry and Warwickshire Partnership NHS Trust feels her CMI training has awakened her ambition Timing is everything. Hard skills have their While I was taking the place. As a therapist by CMI course I applied for a training, my soft skills promotion, which I got. I are very developed, but I was much more confident struggled with managing in applying thanks to what poor performance and I had learned. being more directive. It’s never too late to learn Shared vision is vital. a new vocabulary. I’m a The NHS has commonality clinician, and in the NHS among services, but is not there are also business always as joined-up as it services. Sometimes could be. Communicating we use very different a shared objective and language. The course vision is a way to get some gave me the vocabulary I of that ‘joined-up-ness’. needed to communicate more effectively with My husband can unload colleagues who have a the dishwasher! While more corporate role. I was on the course my family was patient, and it I need a “recipe”. The was good for my children best things I got from to see me doing homework “It’s over” the course were the too. When I did well, they If it really is time to make a break, models and frameworks said: “Yeah, Mum!” advises Lees, “stock your lifeboat it provided. I can make the before you jump”. This means having a cake, but I need to be told After 20 years, I’ve still Love letters reasonably clear idea of what you are whether I need eggs, or got passion. The courseVisit www. good at and what you are looking for. flour, and so forth – and the reignited it and my If you are aware of what your skill mix frameworks and models aspirations. I’m enjoyinguk/practical- is and what makes you a distinctive give me those guidelines. the challenges of my newsupport for worker you can go to the market with a position and thinkingchecklists and good story, which makes you attractive Being honest is best. about the future – and themodels to help to prospective employers. In our organisation we learning I did on the courseyou guide your But beware, says Lees, of accepting constantly strive for played a big part in or those novelty as an alternative – otherwise service development andyou manage who known as the rebound. This can improvement, so there Join in and skill upface these issues mean you enter a new organisation, is a lot of change. People Jo completed the but encounter the same problems. may not like it, but if you Level 7 Diploma in The attraction of the new should are honest they often find Strategic Management always be more important than the it easier to deal with. It’s and Leadership at repulsion of the old. Every move when the transparency Charterhouse Training. should build something new into and the trust aren’t there Will you? Go to employers. your career. that it is difficult. _ 39
  • 38. Your management questions answered Ask the expertsQ How does one approach a supply chain riskmanagement programme formore unpredictable risks?Can over-planning actuallybe less constructive? Mike says: The profile of supply chain risk management has never been higher, with uncertainty surrounding the global economy, resource constraints, inbound inflation and the supply disruptions experienced in many sectors over the past 12 months – such as the impact of the floods in Thailand on hard-disk drive production. Although many of the tools used by purchasing and supply professionalsPROF MIKE LEWIS have risk management principles at theirCentre for Research inStrategic Purchasing core, events with a low likelihood and extremeand Supply, Bath consequences – what Nassim Taleb has calledUniversity “black swans” – are di erent. By definition there is an almost infinite number of low-probability events and, as a result, attention paid to some – triggered by direct experience or high-profile news coverage – means that firms will necessarily be ignoring others. For example, given the Q How domy frontline open debate of among I encourage staff? Many them seem wary of upsetting authority, devastation caused by the Asian tsunamis in but I feel important issues need to be 2004 and 2011, it is no surprise that a recent addressed honestly. survey of 100 executives at multinational corporations (FM Global Supply Chain Alf says: In a previous Risk Study 2011) revealed concerns that organisation in which I worked, a large proportion of China’s industrial the administrative employees production capacity is near its east coast – were reorganised three times and is vulnerable to flooding. This is not to in four years; on each occasion say that this is a misplaced concern, but it is they were required to apply for important to recall what we know about their own jobs on the basis of the biases associated with human decision- “best practice”. The result was making processes: we give undue weight the total destruction of morale to compelling stories, and recent events are DR ALF CROSSMAN and camaraderie, as employees often associated with a greater likelihood Senior lecturer in competed with each other of an event happening – i.e. we worry more industrial relations for their survival. No wonder about what we can bring easily to mind. at Surrey Business organisational change is feared – School There is limited benefit associated with in many cases, management has trying to forecast specific extreme events created the situation itself. and much greater value will come from Mass meetings are the scenario planning intended to increase the favoured way of getting views organisation’s ability to cope with all sorts of from sta and disseminating consequences. Correspondingly, purchasing information quickly, but they are supply practitioners should place more rarely e ective: the opponents emphasis on identifying those supply may be the most vocal, but this options that provide genuine flexibility tends to make management and/or reliability. defensive and the mood of the40_ PROFESSIONAL MANAGER _ February/March 2012
  • 39. Advice Q My managementthe prolonged make team want to some major changes in company strategy to weather economic storm. However, more conservative leaders have expressed reluctance. How do we communicate the positive side of the plans? Greg says: Initiatives will have an optimal chance of success when they are clearly communicated as being part of the organisational vision with which sta are already aligned. It is important that sta feel they are making a contribution towards the company’s goals. GREG PARK During periods of economic Senior consultant instability there is a tendency to at Deloitte focus on the tangible risks when undertaking a new initiative. Meulaboh, Indonesia: These will include matters such A man looks out over as intrinsic market, regulatory, an area that has been finance, systems, production, totally demolished in the tsunami-ravaged town pricing and operational risk. What frequently slips o the dashboard of innovators and meeting adversarial. Some employees are leaders of organisations is what reluctant to raise their concerns publicly might be termed “people risk”. for various reasons – it could be shyness or Start by listening. People who the desire to not be seen as a troublemaker. For advice, see no need to shake the status Challenging organisational norms or assessment tools and quo are not interested in hearing decisions for change strikes fear into the study support, visit all the reasons why change is heart of employees, but what they like even happening – they simply want less is not being in control of the situation uk/practical-support to be heard. that is unfolding around them. Open-door Keep the initiative policies also rarely work; employees often collaborative every step of the feel uncomfortable about going to the boss’s way and the natural inclination o ce and entering management territory. towards resistance will subside, The best course of action is to walk as long as the need for change around and talk to employees in their is truly in the best interests of own workspaces. This is a far more the company these stalwarts productive way of getting the message so fiercely believe in. across. People are happier voicing their FIND OUT To pursue and establish a concerns in their own environment. It MORE… people-centric mindset, leaders might take more time, but this approach Check out CMI’s must clearly communicate is constructive and will pay dividends in Management Direct and reinforce the vision of the the long run. Whatever approach is taken, service organisation, and o er clear, there must be a culture of openness and trust riskmanagement specific and detailed directionPHOTO: SPENCER PLATT in which discussion is encouraged rather for checklists on in respect to its achievement. than feared. Employees can get concerned themes such as We become so excited by over what appear to be trivial things. But risk assessment, something new that we focus they’re not trivial to them and managers managing risk and too much time, energy and should not dismiss them as such; listening spotting when to focus on its implementation, to and respecting employees’ concerns is take a risk in your and unknowingly allow the crucial in managing change e ectively. organisation. organisation to drift o course. _ 41
  • 40. FLEETING THOUGHTS Don’t play squash but for hundreds of motorway miles it’s not the choice I would make. Something a bit bigger, with more with your staff room for the driver, a less hard- worked engine and perhaps a bigger presence on the road will mean a more comfortable, less fatigued and more e ective employee. The key is Cutting costs on fleet cars and having cramped and tired to think of your fleet car or van as a staff meeting clients is a false economy, warns motoring tool, which means you must think expert Peter Rodger about what you want it to do. Some of us escape all of these problems, because we let sta G iven the economic slump, many managers are trying to cut spending in ways that a ect use their own cars. It’s financially beneficial sometimes. But it can mean that you let them choose us directly. There’s no shortage of the wrong tool for the task. What pressure to push back against that is sometimes known as the “grey – we need to invest in new products fleet” is as open to problems as and inflation is creating higher company cars. There’s an irony that costs. To run an organisation, we sometimes more senior managers always need to do something, spend have the tools those further down something and save somewhere. the organisational food chain But where can savings be made? actually need, but don’t have. Before I dive into where I think That is, the boss might be making you shouldn’t scrimp, bear in mind his 15-mile daily commute in a that many businesses say that the most important resource they have is the people who work for “Many businesses say that the most important them. I want to take you a long way with that line of thought. resource they have is the people who work for I’m not too fussed where the them. I want to take you a long way with that” long way gets us to really, if it’s a long journey – that means a long sta member will be tired, cramped Mercedes-Benz E-Class, while the time with your sta member or and not at their most e ective when sales manager is schlepping up and colleague sitting in a driving seat. they step out into your customer’s down the country in a clapped-out The pressure on businesses to cut car park. The fuel bill will be lower, Metro. That is the opposite of good costs means that there’s a huge the car tax might be lower, the business process. We view cars as temptation for that driving seat to capital cost (or lease price) will be status symbols, but company cars be in a small car, with a big miles- lower – but sta e ectiveness will should be recognised as business per-gallon capability. Now, don’t also be lower. If the sta are tired tools. Buy the cars that the leap to conclusions here – that’s before they start dealing with the business needs. great if you do short trips, especially customer, have ringing in their ears Peter Rodger is chief examiner of around town where parking is tight from a loud, overworked engine the Institute of Advanced Motorists and if you aren’t the same height as (OK, I exaggerate, but…), what the average basketball player. But, if e ect will that have on customer you drive from London to Glasgow relations, e ciency in how long customers and will cost more regularly, or you are significantly the job takes and the bottom line? their luggage, and to buy or lease. not ideal for the tall, that small car is not a suitable Let’s work out what the business trip from London Vauxhall Astra Solid, tool for the company to use. Your needs. First – is the car the best to Glasgow up the medium-sized option anyway? I travel from M1 and M6. car. Carries the Mercedes-Benz London to Glasgow by train or PETER’S E-Class saloon people, carries some load and plane, leaving the car at home TOPILLUSTRATION: QUINTON WINTER Very comfortable, does the miles. or the airport, and I work for a strong image, driving-based road safety charity. GEAR eats motorway Doesn’t do either extreme as well miles, and leaves If you decide that the car is the Choose you feeling as the others – it the tool is a compromise right tool for the journey, you to match fairly fresh between them. and relatively You won’t create have to ask yourself whether you are the task… relaxed. A bit the same image buying or sourcing your cars simply Fiat 500 awkward to as the Merc – because they are the cheapest or Brilliant fun, park in small either on the great around spaces, leaves dodgy estate or because they are the right tool for town and attracts you worrying if in the executive the task that the employee has to attention. A bit parked on a run- car park – or the undertake. The Ford Fiesta is great, cramped for three down estate and Fiat, come to that. 42 _ PROFESSIONAL MANAGER _ Winter 2011/12
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  • 42. A look inside the work of top management thinkers Reviews that people can ask themselves – questions that address their inner mindset, outside influences and practices they can apply. Each chapter also finishes with a philosophical exploration of the concept of the challenger spirit. We didn’t want a heavy management book that was full of chatter and padding where the reader has to work Find to find the insights they are out more looking for. The Challenger Spirit analyses the practices How did you set about and disciplines writing it? that underpin K: Our research initially focused Albert the successful on smaller companies that weren’t Einstein bravely challenger market leaders and asked what organisation. It is they were doing to challenge big went where published by LID, no one had players. Yet people who worked gone before RRP £16.99. To for the dominant companies were find out more visit saying “please don’t ignore us”. WRITER REPLIES We found the most interesting challenger_ONLY THE BRAVE spirit_book stories of innovation in larger, more established companies.Khurshed Dehnugara and Claire Genkai Breeze ofresearch and advisory firm Relume tell Kayleigh Ziolo Why is it so relevant in theabout The Challenger Spirit, a study of organisations current financial climate?that have challenged the status quo K: It is harder to be an innovator when the economic outlook isWhat did you aim to achieve amount of rebellion in one’s bad. Companies are receivingwith the book? character, but to be a total rebel conflicting messages – they mustK: We wanted to provide means you become completely grow and change the fortunes ofinspiration to those who want to disconnected and your actions the company, but they must notchallenge the status quo – often are just destructive. Without take any risks. Everyone is boggedagainst the odds – and comfort to a certain amount of grounding down by strategy, performancethose who are already doing so, in in the establishment side of the reports, analysis, growth driversseeing that they are not alone. organisation, you won’t be able to and so on. We lose contact with channel your energies e ectively, the things that make the mostWhat does a “challenger” or have the ability to speak the impact in an organisation – ourdo di erently? language of more conservative vision, sense of hope, ambition,K: Di cult times allow real employees for your ideas and ability to cause some instabilitychallenger managers to thrive – approach to be accepted. and the relationships we haveconstraint often fuels their desire with those around be more creative and go against How did you go aboutthe grain. Challengers want to presenting your research What do you hope readersreconnect with why they set out and communicating will take from the book?with the company in the first your message? C: We look at the leadershipplace, and want everyone around C: We wanted to identify the core skills and organisationalthem to reconnect with them too. practices and behaviours that culture that is required for we felt defined the challenger companies to become realGoing against the grain – so “spirit”: the distinctions in drivers in their marketplace. PHOTO: ALAMYwe’re talking about rebellion? character that were at the heart We hope it will provideK: One thing we don’t want to do of the organisations challenging readers with the informationis to confuse a challenger with a the status quo. We end each and inspiration to take arebel. There needs to be a certain chapter with a set of questions challenger leap of their own.44_ PROFESSIONAL MANAGER _ February/March 2012
  • 43. Reviews Higher Ambition: How Great Leaders Create Economic and Social Value Michael Beer, Russell Eisenstat, Nathaniel Foote, Tobias Fredberg and Flemming Norrgren Harvard Business School Press £21.99 PM rating: ••••• Full of powerful stories and of their sta , aligning the diverse advice, Higher Ambition argues elements of their global firms and that successful companies have focusing on upgrading leadership demonstrated “the distinctive capabilities in their organisations. ability to do good while doing However, some of these companies well”. On the downside, it is not have a more erratic performance made entirely clear whether that than the authors recognise. is actually the same as doing well The book argues that great because they are doing good. leaders win with their employees, The chief executives identified in customers and communities. the book, from Standard Chartered These are relevant insights and,The Economist Guide Bank to Campbell’s Soup, follow at last, stakeholder theory isto Business Modelling basic practices and principles, becoming a mainstream themeJohn Tennent and forging winning strategies that in leadership literature.Graham Friend leverage unique cultural and human Professor Bruce Lloyd,Economist Books capabilities; raising the aspirations London South Bank University£25.00PM rating: •••••Business modelling is often a Winning Investors Over bases his work on studies that hedi cult subject to master and use Baruch Lev and others have undertaken on ae ectively. The Economist Guide to Havard Business wide range of business issues thatBusiness Modelling, now in its third Review Press a ect investors’ perceptions.edition, takes the reader through £21.99 Extensive research enablesthe full process. Along the way itprovides a wealth of guidance on PM rating: ••••• Baruch Lev is an accounting and Lev to dispel many myths surrounding managementhow best to approach the modelling finance professor at the Stern actions in dealing with investors.process and highlights areas where School of Business and a visiting His advice is summarised at theissues commonly occur. professor at the City University end of each chapter and provides The guide will not make the Business School. This may put a prescription for managementmodelling process easy, but it managers o , but don’t let it. A action that is pragmatic anddoes provide a clear path to best highly readable book, Winning powerful. He is by no means apractice for anyone involved in the Investors Over is full of first-class flu y academic and the book isdevelopment and use of financial ideas and supported by research right on the money models. It covers on how top managers should deal Lev has a fluent writing styleeverything from the practicalities with their investors. and the book is packed withof the model itself to the details of The book addresses the need interesting examples. It is fullyhandling the financial inputs and to handle corporate financial annotated and has an exhaustiveoutputs used in the process. communications with investors index. Every board member should Unfortunately, the guidance as a key element in developing a read this book.assumes the business model will be long-term business strategy. Lev Andrew May FCMIbuilt using Excel. But the main Reader offeremphasis is on the modelling Readers can buyprocess rather than the use of THE APPETISER The Economistspreadsheet packages. Having said Guide to Business Gistthat, there is a lot of guidance on Modelling by BlackBerry, iPhone, Androidhow to get the best out of Excel and John Tennent and Freeplenty of tips that could be used Graham Friend for It’s hard enough trying to pin down your contacts inby any manager in any situation. the special price real life, without having to sift through various devices The book is aimed at a wide of £15 (plus p&p). and online profiles to contact them in cyberspace. Gist To order, pleaseaudience, from the novice to the is an app that brings everyone together, giving you an call 020 7841experienced business modeller, 6300 and quote easy way to navigate and view your entire network. Youproviding coverage in a digestible “Professional can even see your contacts’ updates on Twitter andformat. It can be read cover-to- Manager offer”. Facebook, and the app can be used with Google Chrome,cover or dipped into as required. Offer ends 31 Gmail, Outlook and Mozilla Firefox as a plug-in.David Stephens FCMI March 2012. PM rating: ••••• _ 45
  • 44. Your management For the latest eventquestions answered. Stay connected with our regional networking events updates and to book EventsVisit your place, visit www.for more details eventsSpeaker’S corner South eaSt LondonSpark their 8 February Unlocking Motivation 23 February The Medium isenthuSiaSm in Your Organisation Southampton Science Park, 2 Venture Road, Chilworth, the Message Venue tbc 6.30pmJohn Tunstall tells us why employee engagement Southampton £10 member/is the key to motivation in your workplace 6pm £15 non-member £15 member/ A look at communicationsWhat is your background? How does this relate £20 non-member today and its advantagesI was an electronic engineer to your event? Organised by CMI Solent and disadvantages. Fromfor 10 years, before I went into “Unlocking Motivation in Your and WiM Hampshire snail mail to Twitter andsales. I joined just before the Organisation” is about using and West Sussex, with beyond. Food is provided.advent of the internet. Until the potential that is already IoD Hampshire and Organised by Central andthat point, sales strategy had there, rather than going to Isle of Wight. Westminster branch.been the same for 100 years. costly and time-consuming Speakers: Steve Jones Contact: David Blackett lengths to create solutions. and John Tunstall (t 020 7602 2755,So what changed? Contact: Abha Thakor e centralandwestminster@Previously, most customers What makes this event or Tim Groves happy to pay more for stand out? (t 01962 737325,quality. But the internet gave The event is based on a e cmisolentevents@ South WeStrise to increasing polarisation government-supported report. 5 Marchbetween those focused solely The 2007 MacLeod Review’s Management Forumon price and those who sought results are still relevant today. 29 February and CPD & Charteredsolutions to their specific Confronting fear Manager Workshopissues. The latter group What will people learn? of the workplace Room 8W3.14,became the focus of my work. It will provide knowledge, Buckinghamshire School of Management, tools and inspiration. New University, High University of BathWhat was the result? Wycombe Campus 6.30pmThe company saw a profit l “Unlocking Motivation in 7pm Free member/increase of £70,000, without Your Organisation” takes place £10 member/ £10 non-membereven taking on a single on 8 February. See the next £12 non-member Refreshments arenew customer. column for more information. Organised by South provided. Please use Bucks branch. the West Car Park. Contact: Stephen Fletcher Organised by Bath branch. companionS’ dining cLub dateS (t 07768 686160, Speaker: John RichardsWe have pleasure in announcing the following Dining Club e Contact: John Richardsdates for the first half of 2012, exclusive to CMI Companions: (t 01761 434537, e john@ 14 March February Events begin with a drinks Mindful Leadership(30 Pavilion Road, London) reception at 6.30pm, followedPresident’s Dinner with guest University of Surrey, 15 March by a three-course dinner. Dressspeaker John Armitt, Olympic School of Management, Bristol Airport, Past, code is lounge suit and cost isDelivery Authority (black tie) £89, unless otherwise stated. Guildford, Surrey Present and Future 7pm Bristol International Airport5 March (Royal Collegeof Physicians, London) Benefits of attending include: £10 member/ 7pmDining Club with guest speaker • Listen to guest speakers on £12 non-member £10 member/Rt Hon Stephen Dorrell MP topical management issues For location, please £15 non-member • Experience the finest go to the University A coach will leave Rivers26 April (venue tbc) venues the UK has to offer of Surrey campus map Street in Bath at 6pm.Dining Club with guestspeaker Baroness Tanni • Networking opportunity at The event will end at 9pmGrey-Thompson DBE with other Companions Parking is free in the and the coach will return23 May (venue tbc) Contact Agatha Sutcliffe evenings. Organised by 10pm. RefreshmentsDining Club with guest speaker (t 020 7421 2730, e agatha. by Guildford branch. are provided. If travellingBaroness Virginia Bottomley Speaker: Susan Peacock by car, please tell Walter if you would like to reserve Contact: Brian Good Sweetenham and we will27 June (venue tbc)Dining Club with guest speaker a place at any of the events (t 01483 689347, arrange a free car park pass.Lord Heseltine – guests are welcome. e Organised by Bath branch.46_ professional manager _ February/March 2012
  • 45. EventsSpeakers: Mike Littleton Dragon Leadership, will be Newport Business School year be given by a high-and Jacqui Mills available to buy and one for its sponsorship of this profile Welsh sportsContact: Walter copy will be raffled via a event, which is being held personality. OrganisedSweetenham (t 01225 show of business cards. in association with CIM by Swansea branch.427110, e wsweetenham Organised by Coventry and Wales. Organised by South Contact: Terance or Sarah Warwickshire branch. East Wales Network. (t 07794000492,Golding (e sarah.golding Speaker: Joanna Tong Contact: Barbara e Contact: Janet Payne Chidgey (t 07989 385114, (t 07946 021720, e e barbarachidgey@ East coventryandwarwickshire. 1 March1 February St David’s Day BreakfastThe time advantage 23 February – SE Wales CMI inVenue tbc 15 March Coaching for Success association with6.30pm Smarter Working Swansea Business School, ACCA WalesCost tbc Project Workshop Mount Pleasant, Swansea Hilton, CardiffOrganised by Coventry University 6pm 7.15amCambridgeshire branch. Enterprises, Coventry Free £22 + VAT member/Contact: David Woodcock 6pm At this event you will £200 + VAT table for 10(t 07866 576089, Free be encouraged to think The South East Walese david.woodcock@ Organised by Coventry and differently about coaching CMI Network is Warwickshire branch. and take away practical to announce that the Speaker: Corinne Edwards and effective ideas to use guest speaker for the WEst Contact: Janet Payne in coaching. Organised prestigious annualMidlands (t 07946 021720, e by Swansea branch. St David’s Day Breakfast8 February coventryandwarwickshire. Speaker: Doug Strycharczyk is the entrepreneurDeveloping a Contact: Terance Phillips Sir Chris Evans MBELeadership Culture (t 07794 000492, Contact: BarbaraButts Park Arena WalEs e terancephillips@ Chidgey (t 07989 385114,Conference Centre, 7 February e barbarachidgey@Coventry Rugby Club Corporate Social (buffet and Responsibility (CSR): does 29 Februarynetworking from 6.15pm) it matter to small firms? St David’s Day Lecture 15 March£7 member/ Newport Business School Swansea Business School, The Manageress:£10 non-member 6pm Mount Pleasant, Swansea does gender affect yourJoanna Tong is the first Free member/ 7pm management style?winner of the North West £10 non-member Free Swansea MetropolitanWomen’s Achievements The South East Wales The annual St David’s University, SwanseaAward. Copies of her book, Network wishes to thank Day Lecture will this Business School, institutE of consulting (ic) Enrolment to 10 February 5 March 14 March 19 March 12 March any IC course at Effectively (also 2 April) The Lean The Strategy (also 9 April) the non-member Implementing The Professional Operations Consultant: CMCE/DMC a Balanced Consultant: Consultant: DMC Course rate includes Scorecard CMCE & DMC DMC Institute of Distance a FREE year’s Institute of Institute of Institute of Directors, learning membership Consulting, Directors, 116 Pall Directors, 116 Pall Mall, For cost please to the IC. London Mall, London 116 Pall Mall, London contact provider www.icon 9.30am 9am (three-day London 9am (three-day on 020 8883 1423 consulting. £295 + VAT course) 9am (three-day course) Speaker: member/ For cost please course) For cost please Mark Law BSc £395 + VAT contact provider For cost please contact provider (Hons) MBA non-member on 020 8883 1423 contact provider on 020 8883 1423 CMC FIBC Speaker: Phil Hall Speaker: on 020 8883 1423 Speaker: Contact: Contact: Mark Law BSc Speaker: Mark Mark Law BSc Laura Robertson Angela Rose (Hons) MBA Law BSc (Hons) (Hons) MBA (t 020 8883 (t 01536 207404, CMC FIBC MBA CMC FIBC CMC FIBC 1423, e laura e training@ Contact: Contact: Contact: Laura Robertson Laura Robertson Laura Robertson (t 020 8883 (t 020 8883 (t 020 8883 1423, e laura@ 1423, e laura@ 1423, e laura@ _ 47
  • 46. Mount Pleasant, Swansea Marshgate Prison, examples. Refreshments 6.15pm6pm Doncaster will be served from 6.30pm. FreeFree 6pm Please book early. Organised How to become a resourceFor women in management Free by WiM Yorkshire. of choice using the poweracross many sectors. Hear leading author Mindy Speaker: Chris Baines of personal branding –Interactive session. Tea/ Gibbins-Klein deliver a Contact: Chris Baines a keynote presentationcoffee served. Organised really interesting and (t 07710 515041, e christine. invaluable for anyoneby Swansea branch. different presentation, or June who networks – eitherContact: Steve Griffiths with tips on how we can all Lancaster (07775 942775, physically or virtually.(t 01792 481118, e steve. become thought leaders, wimyorkshire@managers. Speaker: David raise our profile and Contact: Robert Colin maximise our performance/ Lynch (t 07778 113333,20 March goal achievement. NORTH EAST e robertcolinlynch@The Lying, the Which Organised by Doncaster 23 March the Wardrobe and Barnsley branch. Annual Black TieHugh James Solicitors, Speaker: Mindy Dinner and Awards 14 MarchSt Mary Street, Cardiff Gibbins-Klein Judges Hotel, Yarm Manufacturing: A Future6pm Contact: Paul Kincell 6.30pm for Britain – ManufacturingFree member/ (t 07952 822326, £40 Institute Event£10 non-member e CMI members will be Forum 28,This event is being held in issued with a £5 drinks Barrow-in-Furnessassociation with CIM and we 23 February voucher to spend at the bar 7pmwish to thank Hugh James Selling Yourself on Paper: during the event. Menu is FreeSolicitors for their generous Writing a Persuasive CV available online. Organised This is a joint event assponsorship. Tea/coffee and Covering Letter by Tees Valley branch. Cumbria branch worksand light refreshments on Eversheds, Bridgewater Speaker: Baroness Tanni closely with severalarrival. Organised by South Place, Water Lane, Leeds Grey-Thompson DBE organisations to offerEast Wales Network. 7pm Contact: Kay Matthews a varied programmeSpeaker: Sue Smart £8 member/ (t 07796 267571, throughout the year.Contact: Barbara Chidgey £15 non-member e teesvalleydatamanager@ Organised by Cumbria(t 029 2049 6464, If you are actively seeking branch.e barbarachidgey@ a new job or just want to Speaker: Dr Julie Madigan, keep your CV up to date NORTH WEST CE The Manufacturing for the next time you need 12 March Institute YORKSHIRE it, join us at this event for How to become resource Contact: Ian Palmer& HUMBERSIDE advice on how to make your of choice through (t 01229 832847,13 February application stand out from personal branding e ianpalmerip@How to be a thought leader the crowd, with real-life Venue tbc MY CMI ANDREW SUMMERS Where did it all begin? How did you come in contact with CMI? Ever since university I knew I wanted to CMI was associated with the Design Council. be a chief executive. I was lucky enough to My business school experience had given me a become managing director of Sharwoods good grounding in some of CMI’s principles and at the age of 33. I was honoured to become a Companion in 1997. What did you do for the company, What have you learnt through CMI? and what did you learn? The Companions network is made up of Through developing Sharwoods into an 800 senior leaders. I have learned so much international food business, I learnt about the from these talented people. importance of strategic leadership, of a focusAndrew Summers has on people and of the power of creativity. What has the CMI enabled you to provide?led organisations such I have been able to develop the Companionsas Sharwoods, the Design How did it influence you as a manager? programme and I hope to become a mentorCouncil and Companies I was able to build on my skills in subsequent for new managers.House. As chairman of the roles. When I came in as chief executive ofCMI Board of Companions, the Design Council, it needed to be drastically What is currently on your agenda?he tells us about the turned around. My experience at Sharwoods I am part of an Olympic Taskforce forbenefits of CMI and how helped me give the organisation a stronger Business. This organisation will showcase UKit can help all managers focus on customers and stakeholders. business during the London Olympics in 2012.48_ PROFESSIONAL MANAGER _ February/March 2012
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  • 48. AOB The measurement culture might seem inescapable, but obsession with figures can lead to horrifying results. It’s dangerous to reduce management decisions to mechanical calculations, argues Simon Caulkin The numbers game you always lose f you can’t measure it, you chases: the attempt to reduce their job to I can’t manage it” may be the most commonly quoted numbers. Hence many bosses’ obsession with league tables and the resulting arms adage in management. Yet, race of measurement bureaucracy. This extraordinarily for such an influential causes managers to constantly fine-tune phrase, it has neither definitive measurement mechanisms, just as those attribution nor justification. It’s a folk they manage learn how play them or saying, with as much objective validity avoid them altogether. as, say, “Too many cooks spoil the broth”, Spurious quantification is or indeed its opposite, “Many hands everywhere, leading to misleading make light work”. conclusions and vast amounts of Measurement is so critical to pointless work. But nowhere have its management that basing it on folklore e ects been more dire than in risk was always going to end in tears. management. In some cases this would And the harm that the idea has done be ludicrous if it wasn’t tragic, as with the is incalculable. W Edwards Deming failure of two community police support classed “management by use only of o cers to go to the rescue of a drowning visible figures, with little consideration 10-year-old boy because it didn’t fall of figures that are unknown or within their risk range. In other cases, it unknowable” as one of the seven deadly is both ludicrous and hair-raising. One of management diseases. Henry Mintzberg, the contributory causes of the financial the sanest of management thinkers, meltdown of 2008 was the bogus validity suggested that “the premise that we can’t ascribed to securitised subprime measure what matters” was the most mortgages and other instruments by a realistic starting point for management. mechanical ratings process that ranked One problem with the measurement- them as risk-free even though no one management equivalence is that it is could fully comprehend them. And the normative and thus self-fulfilling. I’m risk-management model in the trading reminded of another saying – true, this algorithms used by the banks failed to time – that “you get what you inspect”. foresee the possibility of all traders doing You certainly do – because many, even the same thing at the same time. Moral: most, human beings are conditioned to meet those targets they are measured “Spurious just because they’re numbers doesn’t mean they’re not pure fantasy. on, to the detriment of other concerns. quantification Thus do attempts to eliminate risk The result is a highway to hell that ends is everywhere, by quantifying it actually increase the up in such ghastly places as an NHS danger. Because the greatest casualty in that doesn’t do care or schools that don’t leading to misleading all this, alas, is what good management do interesting, because those qualities conclusions and really is about: judgement. The chief aren’t specified or measured. This paradox operates like Gresham’s vast amounts of executive of a London council told me with a sigh that younger managers were law with a twist: the easy to measure pointless work” lost without numerical targets because it ILLUSTRATION: QUINTON WINTER drives out the harder to quantify, even forced them to think and make decisions when the latter is more important. for themselves. This included one of the Another management writer, Igor most important decisions of all: what to Anso , sighed: “Corporate managers measure. “Not everything that counts start o trying to manage what they can be counted, and not everything that want, and finish up wanting what they can be counted counts.” That’s often can measure.” Yet the problem runs attributed to Einstein – a more reliable even deeper, driving one of managers’ source of management wisdom, I submit, most perennially damaging wild goose than ‘anon’.50 _ PROFESSIONAL MANAGER _ February/March 2012
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