Professional Manager magazine May Issue 2011

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The May issue of Profeesional Manager from the CMI features:

Innocent's, Karen Callaghan fuses order and chaos to brilliant effect

Phil Smith reports on the CMI's Salary Survey and asks Is your pay keeping up with your peers?

What's it like to be managed? Our Secret Staffer reports on management honesty

Helen Loveless introduces how to Perform Under Pressure

Tom Peck explores Why enchanting staff will make them deliver

Should sacking be made easier? See both sides of the argument and join in the debate

Are you managing staff holidays properly? Alison Blackhurst reports

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Professional Manager magazine May Issue 2011

  1. 1. £4.50 / FREE TO MEMBERSthe chartered management institute magazine MAY/JUNE 2011are yougettingenough?Managers’ salariesrevealed in ournationwide survey innocentblooms The smoothie empire’s people director Karen Callaghan fuses order and chaos to brilliant effect fire fight Should sacking people really be made easier? club mad How bosses are failing to manage holidays magic circle Why enchanting staff will make them deliver
  2. 2. Professional Manager May | June 2011 Chartered Management news & views Institute (CMI) Management House, Cottingham Road, Corby, 05 Briefing Northamptonshire NN17 1TT Top bosses beat recessions with ideas, says CEO Ruth Spellman t 01536 207307 06 Feedback e membership@managers.org.uk Your letters and our mystery new columnist www.managers.org.uk 08 agenda Michael Skapinker’s essentials, plus other key management news Chief Executive Ruth Spellman 15 View from Westminster Director of Marketing and John Denham MP says it’s folly to expect business alone to save us Communications Simon Dolph 16 Debate Head of Communications Should firing people be made easier? Mike Petrook CMgr 50 aoB 7 Managers must sell their way out of a slump, says Stefan Stern Editor Ben Walker Art director Scott Bentley features Chief Sub-editor James Debens Editorial Assistant 18 inside innocent Rebecca Kearley People person Karen Callaghan mixes it up at the drinks giant to Account Director Sam Gallagher find the perfect fusion of order and chaos Publishing Director 24 Perform under pressure Ian McAuliffe Helen Loveless says budget cuts can make you rethink – for the better Advertise with us: For all 26 the age of enchantment enquiries, contact Michael Tom Peck attends charm school Coulsey (t 020 8962 30 Pay checked 1261, e michael.coulsey@ Philip Smith brings us the big findings from CMI’s salary survey. thinkpublishing.co.uk) or Vicci Rule (t 020 8962 2942, 26 Is your pay keeping you up there with your peers? e vicci.rule@thinkpublishing.co.uk) cPd Planner Professional Manager 35 PM profile © 2011. Published on BAE Systems’ Alan Robson flies the flag for CMI’s chartered behalf of CMI by Think, management qualification The Pall Mall Deposit, 124-128 36 Masterclass Barlby Road, London W10 6BL What not to do and which questions to ask when interviewing t 020 8962 3020 e professional.manager@ job candidates managers.org.uk 38 ask the experts www.thinkpublishing.co.uk How to motivate your people in turbulent times 41 the personnel touch Member of the Audit Give your staff a break, says Alison Blackhurst – you will soon Bureau of Circulations reap the benefits 86,578 1 July 2009 to 30 June 2010 36 46 events Boost your contacts book with the latest networking eventsCOvER phOTO ChARliE BEST Printed by Headley Brothers on UPM Star matt, which is certified as coming from well-managed forests. 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 made by contributors or advertisers or in this issue accept responsibility for any statements which they may express in this publication. ISSN 0969-6695© Tom Peck Philip Smith Stefan Stern The Independent’s The business The award-winning roving reporter writer for The Daily business journalist dons his magic Telegraph dives into says managers hat and learns to the data from CMI’s must brush up their cast a spell p26 salary survey p30 sales technique p50 www.managers.org.uk _ 03
  3. 3. get More FroM CMiRuth Spellman, chief executive, Chartered Management Institute as a cmi member, you have access to a comprehensive HR range of products and marketing services, all designed new recruitment to help you on your path business advertising R&D catering to management success ty uri sec on the WeB With free checklists, e-learning modules, podcasts and an ‘ask benefits internat t the researcher’ service at www. ional en IT projects u re m managers.org.uk/information- oc services, the latest thinking is pr just a click away. There are good cuts, on your CV Enhance your professionaland there are bad cuts status with a CMI management qualification, not to mentionNecessity is the mother of invention. resistance is understandable – study tips when you needThat’s why this slump could be the making if the business is profitable, there is little them most.of many companies – and many managers. incentive to launch a time- and energy-While researching my new book, I talked consuming restructure, even if the in your inBoxto survivors from past recessions. Not business is not as efficient as it might be. Keeping on top of employmentonly had some of these people survived But in a slump, there is an incentive. Your law changes and managementthe recession, but, in many cases, they had business might not survive if you don’t updates has never been easierthrived because of it. The recession had look again at its structure. But, if you do, with our monthly e-newslettergiven them an incentive to be innovative, your organisation will be fit for the future. Membership Matters and e-alertsto take a step back from their organisation, The keys to an effective rethink are from partner BusinessHR.reassess, and make sensible adjustments. focus – be clear about your objectives – I emphasise the word ‘sensible’. There and innovation. This issue, we go inside For the journeyis a temptation during a slump to treat a company that has been innovative in Make your next managementcompany streamlining as a simple its thinking – although Innocent Drinks move with confidence usingmathematical exercise – removing, say, rather modestly says it is simply doing our online continuing professional15% from every part of one’s business in a the basics better (see page 18). Although development system and careerwar on cost. The first casualty of that war successful, Innocent has not been immune guidance resources.is likely to be product quality. to the difficult times. But it has handled Better, then, to be discerning about those situations well. This is why the old on your Phonewhat you cut. Instead of taking a blunt axe idiom still stands: “It ain’t what you do, it’s Want answers on the move? Thenand top-slicing 15%, do as my recession the way that you do it.” download our free CMI app (seesurvivors did and think about which We’ve had recessions before and will page 45) or contact our legalsections and projects of your organisation have them again. There are businesses helpline for up-to-the-minuteyou’d like to keep, and which you could that come out of those slumps feeling advice from a qualified solicitor.handle losing. If you have 10 projects, stronger. There is a reason for that.better to pick the most important two and We have 10 copies of Ruth’s book, in the CoMMunitydo them well, rather than doing all 10 badly Managers & Leaders Who Can: How You Keep the conversation goingbecause you are scrimping on investment. Survive and Succeed in the New Economy both online – through our forums Making these changes, deciding to give away. For the chance to win, send your – or at one of our top regionalbetween good cuts and bad cuts, often name and contacts to PMCompetitions@ networking events (see page 46).requires something that many managers managers.org.uk by 30 June. CMI membersfear – a restructure. During good times, can purchase the book with a 30% discount not yet a MeMBer?many managers resist restructures, plus free UK p&p. To take advantage of this visit www.managers.org.ukbecause they can take huge lengths of offer, visit www.wiley.com, email customer@ or call 01536 207307 totime, and can cause staff to look inward, wiley.com or phone 01243 843294 quoting join today.rather than focusing on the customer. This promotion code CMIML. www.managers.org.uk _ 05
  4. 4. get in touCh Send your views to professional.manager@ managers.org.uk or pM, Think, The pall Mall Deposit, 124-128 Barlby Road, london W10 6Bl. letters may be edited for length and clarityYour chance to comment on management matters Prize Letter universities is low, compared to the time spent on laptops accessing the internet. hang loose Letter During the last 25 years of my career I found your interview with Sara Murray Prize as chairman and managing director of (Professional Manager, March/April) my own company, I encountered several very interesting and a welcome breath of instances that exemplified the statement fresh air.  We so often hear the internet Bob wins a copy of of my mentor, the late Professor Peter sages laud the value of social media Business: The Ultimate Drucker: “Academic attainment is no for business – it was refreshing to hear Resource. it is a one- proof of performance.” someone with Murray’s experience (and stop reference and I am reminded of the quote from the technological understanding) question interactive tool covering Drain Brain Report 1967: “Our relative whether social media is really an integral all aspects of today’s poverty will be overcome only when corporate tool.  world of work. The book we become once more interested in As no Luddite myself, I’m aware of offers practical and the creation of wealth rather than its the benefits to many brands – certainly strategic advice for distribution and consumption.” Things those that have a younger generational anyone doing business have not changed much. customer base – but the prevailing logic today. Written by a team  Albert J Bellworthy, FCMI, FIoD suggests that all businesses need to have of world-class writers an active social media presence to be and editors, it is an two-year trial successful. As the ever-increasing list essential desk reference W Chamberlain’s letter, published last of corporates, celebrities and members for managers, MBA issue, that argues for two-year degrees of the public get their fingers burned and business students makes a good case. As a non-academic by exposing themselves through their and for small business employee at a university, I must declare online “voice”, I applaud anyone who owners worldwide. an interest and that this is my view only. goes against the grain and questions the The scale of the change to achieve a risks and rewards in equal measure. mass of degrees in two years of studying Bob Johnson is daunting – not insurmountable, but hugely challenging. I doubt anyone has Learn to earn the answer yet, but these issues are now With regards to W Chamberlain’s letter exercising some of our best grey matter. in the last issue – I couldn’t agree with Roger Thrush him more. He’s right – universities do have to turn out graduates in a shorter Lunch crunch period than three years. I am 81 and A fall in lunch quality has come about as have four grandchildren. I have paid the purpose of lunches in meetings has the tuition fees for the three who have changed. I remember when lunch in a graduated and am still paying for the meeting was a time to take a break and fourth to complete his degree. The move away from the business matters number of hours that students attend and spend a bit of time socialising. Now latest discussions l how much of a l could london cope l what were you on www.managers. problem are potholes? with a major disaster? expecting from Are Britain’s rocky We’ve seen the the Budget? org.uk roads becoming a threat shocking pictures of the Anxious, or cautiously to business? Damage earthquake and tsunami optimistic? please let compensation claims that hit Japan recently. us know what you in london have But the Japanese have think of the Chancellor’s increased by more than been impressive in their big ideas for Britain, 37% over a three-year response. Do you think as well as what you period, according to londoners would be would do if you were the BBC. as measured? in his position. tinyurl.com/4mzk28z tinyurl.com/5umk8ta tinyurl.com/6kqa5ts06 _ professional manager _ May /June 2011
  5. 5. letters honesty One of the ways in which Being ManageD is the management tries to build some sort of empathy and Best PoLiCy understanding with the What’s it like to be employees at my workplace managed? in our new is through meetings they call column, our mystery “town halls”. These give Secret Staffer reports from a handful of the 200 the shop floor. This issue: shopworkers some oh-so- management honesty rare face time with the top man, and an opportunity to discuss any concerns they have with him. At my first town hall, three colleagues and I were told by our boss to discuss our concerns with each other and write down any comments. After being led deep into the bowels of the store, we were finally sat in a windowless room. I took the lack of any natural light or secondary escape route as a portent of doom. Our manager’s last words before leaving us in the room were simple: “Be honest.” There was little need for discussion. When you ask a group of university-educated people earning just over the minimum lunch in meetings seems to be provided wage what their concerns about the job are, it’s fairly easy to so that the meeting can continue predict their answer: “I wish we earned more.” uninterrupted and people don’t get We passed our notes to the manager and braced ourselves hungry. If this is the case, then it doesn’t for 10 minutes of weasel words and management doublespeak matter how fancy your sandwiches are. on how we were valued workers and the company paid what John Milburn, CMgr MCMI it could, that there’s a recession on and how even the CEO has taken a pay cut in these tough times. great new look! This was not what we got. As a regular reader of Professional After a deep breath, he said: “Here’s how it works. We used Manager, I wanted to express my positive to pay a starting wage around £9.25 an hour, now it’s, what? thoughts on the new glossy magazine. £6.40? £6.50? I forget.” (For the record, it’s £6.28…) The relaunched title provides the “The recession brought,” he continued, “what is called a motivation we need in these austere ‘market correction’. That means there are lots of people looking times, along with the power of innovative for jobs, and to be frank, we can pay less to get the same talent. thinking and a positive mental attitude! “I would love for us to pay you guys more – I think you’re all The Masterclass, for example, section worth more than we give you. But we run a business, a very on networking enables us to improve successful one, and we operate in a free market. One of the the way we connect with others, reasons we are successful is because we don’t overpay for share thoughts and build business Below: products or staff. And, as such, we don’t pay you more than we relationships. Interestingly, though, I Simon Cowell need to.” hadn’t come across the animal terms to tells it like it is This blast of truth was actually taken pretty well. It was a test describe the kind of networker I might for him: he told us to be honest, we were, and he lived up to his be, and I am not sure whether I straddle side of the bargain and earned some respect from his staff for one or more category?  Perhaps the telling it like it is. term “Labrador” describes me because And when it really comes down to it, would I actually trade I am naturally sociable and friendly and respecting my boss and working for a company that talks to me the term “Limpet” because, yes, when like an adult for an extra few pence an hour?phOTO REx FEATURES / AlAMY I locate a friendly face and strike up Well, we’ve all got bills to pay… a conversation, I tend to remain with Yours, that person rather than work the room. So, now I will move towards “Cat” to express my clear-cut goals and hone my networking skills!  Well done, CMI, I look forward to the next good read. Viv Leach, Business adviser and motivational coach The Secret Staffer www.managers.org.uk _ 07
  6. 6. For the latest management news and views, visit www.managers.org.ukInsights 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 managers this spring1 Companies should take on moreapprentices 3 sickness absence to be reviewedThe government should pay The government hascompanies to take on more ordered a review of theapprentices and interns, as workplace sicknesspart of a drive to raise the absence system. illquality of skills and training, health is said to cost theaccording to a report intovocational education by country £100 billion perProfessor Alison Wolf. Her year. The review, whichreport said many of the will be chaired by Davidvocational courses currently Frost, director generaltaught to teenagers in schools of the British Chambersand colleges had little value in of Commerce and Damethe workplace. Carol Black, National Director for health and Work, will look into2 Demand to lift female board representationA report from former trade how more people can be encouraged to stay in employment.minister Lord Daviesrecommended that FTSE 100companies aim to ensure thatat least a quarter of their boardmembers are women by 2015. 4 Middle East revolts posing ethical dilemmas 5 All change for public sector pensions... Lord Hutton recommended, be switched into defined contribution pension schemes, as has happened inLord Davies said this was UK With countries in the in a government- much of the private sector.companies’ “last chance”. If no Middle East rocked by commissioned report, that Company final salary pensionprogress is observed, statutory revolt, managers have found public-sector-defined benefit schemes now closed to furtherquotas will be brought in. themselves caught between schemes be based on a career accrual from both existing and illUSTRATiON qUiNTON WiNTER phOTO CORBiSCompanies seem to their contractual obligations to average rather than final new members have risen tohave got the governments’ and protesters’ salary. He also recommended 17% of all schemes.message, demands. Vodafone defended that the retirement age forhowever: itself after it acceded to an all public sector workers beaccording toheadhuntersEgon Zehnder Egyptian government demand to shut down the mobile phone network and then raised to 65 and then rise in line with increases in the state pension age. Unions have 7 European Court bans annuity sex discriminationInternational, more sent out propaganda threatened action. Continuing the equalitythan a third of FTSE 100 messages from the now- theme, the European Courtexecutive board posts ousted regime. Vodafone of Justice ruled that pensionhad gone to women inthe first few weeksof 2011, compared with said it was legally obliged to act as it did and had to put its local employees’ 6 ...but final salary schemes face demise Lord Hutton did not, however, providers can no longer grant men better retirement annuity rates than women.just under 15% last year. welfare first. suggest that civil servants Men had long received08 _ professional manager _ May /June 2011
  7. 7. Newsbigger pension payouts on nine to FiVethe grounds that they did notlive as long. The pensions asiF VaLiand insurance industry said Business managerthe difference was based on of British boxing starsound actuarial principles, Amir Khan and ownerbut the court ruled that this of multiple childcaredifferential contravened 49% of HR and transportEuropean Union equal- business leaders businesses, therights provisions. say their firms demands on vali are held back by could easily be 24/7. a lack of fresh Determination and8 Public sector pay- cap idea cappedAnother Hutton-authored talent. Bersin & Associates’ discipline help him keep controlgovernment review into fair Q1 2011 0500 My son is up, and are turned down. As soon aspay in the public sector, this TalentWatch® my first meeting of the day he’s back, we fit in as manyone by Will Hutton, dropped survey also is always with him. Before activities as we can.the idea of capping the pay unearthed that I leave the house, we do ourof top civil servants at 20 nearly half of all morning prayers. 1200 Lunch is whatever mytimes the salary of the lowest organisations secretary has left-over, andpaid employees. Mr Hutton say they find it 0700 I’ve checked in with always at my desk.recommended that public hard to fill key my transport business,sector organisations publish roles – up from which will have 40 people 1400 If Amir is abroad,their top-to-bottom employee 35% last year. on the road. Next, I check I check in to make sure hepay ratios and that senior in with my childcare has everything he needs.executives’ salaries be more businesses – I employperformance-related. about 70 people – to make 1600 A meeting at Gloves sure everything is all right. Community Centre (set up by Amir) to make sure the9 Call on companies to mentor studentsScience-based companies 0800 At the office, the first call of the day is to the lawyer, to catch up kids have what they need and the volunteers are in place. This is where I getcould improve the job and life on anything that has my rewards; knowing thatprospects of students from happened with Amir: you charge a kid only £1 forpoorer families by arranging contracts, sparring, venues, them to train in one of theworkplace experience for promotions and so on. best facilities.them and by mentoring them 47% ofat school, according to a UK-based 1100 Answering emails. 2130 Time to wrap thingsreport from the Organisation international I get about 200 a day up. The Americans arefor Economic Co-operation companies and 70% are related to online and they’ll keepand Development. The manage Amir – media, charity and you up until 3am if you arereport also found that poorer succession appearance requests. While not careful. By 10pm, I saystudents who succeeded in planning he is in training, all of those “that’s enough!”science tended to have a more globally,positive attitude to science- comparedbased careers. to 69% of the BottoM Line ShORT, ShARp organisations AND SMART SECRETS TO SUCCESS based in10 Visa system accused ofhampering business Western Europe or North “Challenge and question everything. the highest- America. This is performing teams are those thatCompanies claim that thevisa system for foreign the conclusion recognise that if they do things of Personnel in the way they’ve always donevisitors to the UK is severely them, they will get what they’vedamaging their businesses. Today and international always got, and are curiousThe companies, led by about finding a quicker, moreluxury retailers, say that visa HR software effective way of doing things.”restrictions mean that non- company Jeff Grout, motivational speakerEuropean Union business Cezanne, and author of Mind Games:and leisure visitors are which recently Inspirational Lessons from theincreasingly choosing to go to polled 200 World’s Biggest Sports Starscontinental Europe instead. professionals. www.managers.org.uk _ 09
  8. 8. Last call for trustees meetings in London and the Wright stuff Don’t miss your chance, an annual strategy day. John Briscoe Wright CBE, as a CMI member, to join You’ll also act as a CMI CCMI and immediate past inBrieF our Board of Trustees and ambassador at events. national chairman of the help shape the strategy For detailed criteria and Federation of Small of the CMI. Apply by 31 a nomination form, go to Businesses, has been May if you are interested www.managers.org.uk/ appointed to the Prime in one of the two Board elections or contact Valerie Minister’s Business vacancies. If elected, you’ll Hamill (t 020 7421 2707, Advisory Group. The group serve for three years from e Valerie.hamill@managers. meets the Prime Minister October, attending quarterly org.uk). and Business Secretary onrisks must rise asbusiness priorityCyber security threats are posinga serious risk to the majority ofUK businesses, says a Cmi report. The report, Managing Threats ina Dangerous World, examines howprepared organisations were for theunexpected over the past year, reinforcingthe value of proactive planning. nearly two-thirds (62%) of managersreport that cyber-security threatsare increasingly posing a risk to theirbusiness and 32% of UK organisationshave come under attack in the past12 months. The weather also causedproblems: heavy snow affected 92% of Be prepared for emergencies bycompanies; while the volcanic ash cloud constant planninghad an impact upon 53%. The findings also show that the recentmedia focus on high-profile business Future PerFeCt:continuity failures has had a big impact hoW to Be reaDy Foron the UK’s business planning, with virtually anything15% of managers feeling that Deepwater 1. Put together a team of specialistsHorizon had strengthened the case for from across your business to identifybusiness continuity management, and critical business processes that would prevent or diminish its ability14% believing Wikileaks had caused their to operate and plan for them.organisation to review security options. 2. Integrate business continuity However, despite 82% of those planning into the wider managementsurveyed reporting that their senior strategy – understanding threatsmanagement views business continuity and putting processes in place tomanagement as important or very mitigate them can give businesses 32% of UK organisations have come under aimportant, just 58% say they have plans a competitive advantage. cyber-attack in the past 12 months, with 12% ofin place to cater for the unexpected. 3. Test your crisis plans regularly companies losing confidential information. nonetheless, the report shows clear to ensure that they are comprehensive and robust – a quarter of organisationsadvantages for organisations that have with crisis plans have never testedcrisis plans in place. of those who had them, running the risk that theto activate plans, 84% agreed it reduced plans don’t work when they aredisruption and 77% stated that the costs most needed.are offset by the business benefits. 4. Ensure that coordinating a media ruth spellman, chief executive of response is part of all plans – 61%Cmi, says: “every time an unexpected of managers believe that reputationevent interrupts the operations of a damage is now a more significantbusiness, charity or public body in this threat to their business than financial loss.country, UK plc suffers – yet with good 5. Ensure your key suppliers also havemanagement, this could be avoided.” crisis plans in place – just 5%To download the report or get free of organisations check whether their 84% of those who had to activate crisis plansadvice on crisis planning, visit supply chain will be able to survive said they reduced disruption. 77% said the costwww.managers.org.uk/bcm2011 a major disruption. of the plans is offset by the benefits they bring.10 _ professional manager _ May /June 2011
  9. 9. Agendaa quarterly basis to advise President to be awarded past 25 years and recognises explore your social sidethem on issues of concern Chartered Manager status. those who have excelled Is a social media strategyto UK business. For updates, Read more at www. in areas such as guiding on your agenda? Discovervisit www.managers.org. managers.org.uk/cmgr strategic direction and the business benefits anduk/professionalmanager developing organisational pitfalls associated with going for gold culture. Nomination forms are this new media – andLeading by example Nominations for CMI’s available from matt.beavan@ how to manage itTerry Morgan, chairman prestigious Gold Medal managers.org.uk and the effectively – in CMI’sof Crossrail and president award are now open. The winner will be announced at new practice guide. Visitof CMI, has made history medal has been awarded to the CMI National Conference www.managers.org.uk/by becoming the first CMI inspirational leaders for the in October. social-media-guide in memoriam uK business loses an inspirational educator John Constable, director general of Cmi (then the British institute of management) in the 1980s, has died. in the heaDLines John’s name was synonymous with management education, HOW CMI HAS MADE best practice and business strategy. With roger mcCormick, AN IMPRESSION ON he created a report that has led management and businessCMi engages THE PRESS RECENTLY thinking for more than a generation. The Making of BritishPriMe sky news carried Managers saw that good management and quality leadershipMinister a report of cmi’s affect economic performance, but found that UK management “Tomorrow’s Leaders” fell short on training and development.Cmi’s Ceo ruth spellman survey, which flagged Using the skills and knowledge he had developed workingis part of a new independent up managers’ concerns for the likes of Cranfield school of management and imeDeemployer-led taskforce about the readiness of Business school in switzerland, he also led a review of thebacked by the prime minister young people for work. provision of management education, undertaken with the CBi.– and set up to improve levels [Sky News Online, During his tenure at Cmi, there was increased activityof employee engagement. 4 March 2011] between membership Branches and local schools. We will soon launched at a round-table launch an initiative aimed at 14- to 21-year-olds. it is inspired byin march with David Cameron the Press association John’s work and ensures that his legacy will live on.and employment relations carried commentminister edward Davey, from Ruth Spellmanthe taskforce is a chance for on the importance of PresiDent’s Dinnerleading professionals from the cooperation betweenpublic and private sectors to schools and employers CMI Fellows, Companions anddiscuss ways to help stimulate to develop leadership Ambassadors are to debate keyemployee engagement and skills, in support of the management issues and socialise oversupport those organisations launch of Campus CMI a three-course dinner with our newlooking to implement in March. [3 March 2011] president, Terry Morgan CBE CCMI.engagement practices. The event takes place at the Corinthian The group is set to build The Sunday Times Club, Glasgow, on 1 June. It begins aton the report ‘engaging for highlighted CMI’s 6.30pm with a drinks reception. It followssuccess’, written by taskforce sponsorship of the the President’s Dinner at the Honourable Artillery Companychair David macleod and Best for Training in London, which Terry hosted with CMI chief executive Ruthdeputy chair nita Clarke for and Development Spellman in February. At the dinner, Charlie Mayfield, John Lewisthe Department for Business, category in the chairman, who chairs the UK Commission for Employment andinnovation and skills in newspaper’s 100 Best Skills, showed how best-practice management helps companies2009. The report looked Places to Work list. The thrive, while 80 guests welcomed Terry to the presidency. Forat issues such as barriers training award winner photos, visit www.managers.org.uk/presidentsdinner11 Ticketsto the wider adoption of was charity Llamau. for 1 June (£65) are selling fast. Email agatha.sutcliffe@managers.org.engagement, how to harness uk For more info, visit www.managers.org.uk/glasgowdiningclubengagement for innovationand how to maintain morale ManageMent sPeaKthrough difficult times. Bycollaborating with academics,practitioners and think tanks, Crisitunity 1. n.The point at 2. attrib. An episode of The Simpsons,the taskforce aims to tackle which a crisis provides a unique in which Lisa mistakenly informs herthese issues, offer practical window of opportunity. The term father Homer that the Chinese wordsguidance, share examples of gained has currency during the for ‘crisis’ and ‘opportunity’ aregood practice and generate economic slump. the same.debate via a new website. www.managers.org.uk _ 11
  10. 10. Agenda PoLiCy WatCh George Osborne’s so-called Budget for Growth made some attempt to fix the UK’s economic problems. But firms are still gloomy – and the Government must work harder, says CMI policy and research director louise Brooker-carey chancellor must revive optimism ollowing weak GDP Outlook” survey went live in the 10 managers felt that the Budget f figures at the end of 2010, much of the wake of the Budget. A look at the interim results highlights some would improve their organisation’s prospects for the year ahead. policy debate in the first serious challenges. Around half reported that it had half of 2011 has been about how First, around 80% of managers made things worse. the Government can best promote still feel that the economy However, Osborne’s economic growth. Chancellor is negatively affecting their commitment to create a more George Osborne set out his organisation. Fewer than one in skilled workforce is welcome. The approach in March with the Budget 10 felt conditions were having chancellor announced support for and a new Plan for Growth. a positive impact (with the 50,000 apprenticeship places, and While the need for growth is remainder neutral). We might a doubling in the number of the agreed on across the political expect public sector managers new University Technical Colleges. spectrum, fundamental differences to be feeling the effects of the The colleges are being supported exist about how best to achieve it. Government’s austerity measures. by CMI – we are leading a working For many, particularly on the right, What is surprising is that a greater group of professional bodies the key is to reduce the “burden” number of private sector managers on behalf of the Baker Dearing imposed by Government on report negative effects than they Educational Trust, the body business in the form of regulations did six months ago. Worse still, establishing UTCs. and taxes. But many on the centre private sector managers are less CMI welcomes the aim and centre-left have challenged optimistic about their prospects of creating a more educated the focus on deregulation and for the next six months: for the workforce and Osborne was called for a more active role for first time since 2009, those with a right to draw attention to the gap Government. This month’s View pessimistic outlook outweigh those between the UK and international from Westminster article (see page with an optimistic outlook. skills levels. But his aim must 15) sets out some Labour criticisms So, did the Budget mitigate be backed up with a long-term of the Government’s strategy. this misery? Responses to a new programme that improves But what do CMI members think question looking specifically at skills. Achieving that will be a about the prospects for growth? the impact of the Budget are not challenge for all policy-makers and Our twice-yearly “Economic encouraging. Fewer than one in politicians in the coming years. The Code of Ethics gives CMI members a abide by professional guidelines at work, touchstone for good practice and sends demonstrating that codes of practice a clear message to your peers and your help company leaders set an example CoDe oF organisation that you meet the highest for others. Sadly, the same survey ConDuCt standards of accountability and integrity. showed that 36% are not governed by an The Code has been reviewed by the employer’s or professional body’s code Professional Standards Committee (PSC) and, of those that are, nearly 25% have and is now reissued. The revised Code never read their relevant code. CoDe reaD?illUSTRATiON qUiNTON WiNTER retains the spirit of the former Code, but By distributing our revised Code to our CMi’s code of ethics for has been made more concise. It uses more members, CMI is providing a clear and members revised accessible language and focuses on the robust standard that provides you with important place of integrity and trust and real value in your career. A copy of the the role of responsible leadership. revised CMI Code is included with this In a recent CMI survey of 1,000 issue for your reference. non-member employees, nearly 60% If you want to feed back on the Code, or of those surveyed would think better are interested in the work of the PSC, email of a manager if they made an effort to valerie.hamill@managers.org.uk www.managers.org.uk _ 13
  11. 11. view from Westminster Businesses Cannot groW it aLone if the private sector is to rejuvenate the economy, it needs vision from Government, not news of rising unemployment and a decreased number of adult learners. Does the Government have its priorities right? John denham isn’t convinced n the weeks leading up to of the challenge facing work experience will be i the Budget and the Growth Strategy, the message from our economy and the close link between state a very small proportion of young claimants and the Government was clear: spending and private- that the scheme is aboutthis will be a pro-growth plan, designed sector growth. Chaos in building their CV ratherwith not just this economic cycle in view. planning policy, cuts to than guaranteeing aIt will look to the medium- to long- term science and technology permanent job.vision setting out how Britain could pay investment and damaging Nor do 50,000 newits way in the future. changes to energy policy apprenticeship starts per But was this achieved? Although some have all undermined year replace the 500,000measures in the Growth Strategy were business confidence, training places lostsensible – such as building on Labour’s and the slowdown in name John Denham through the scrappingrecord for improving access for SMEs manufacturing growth Party labour of Train to Gain, which seat Southampton itchento public sector procurement – it lacked in March due to weak first elected 1992 equipped employeesthe long-term vision and systemic consumer spending current majority 192 with the skills businessesapproach that we need for growth. The showed that even former ministerial roles need to expand andGovernment is cutting the deficit too far improving sectors are Secretary of state for remain competitive. innovation, universitiesand too fast, resulting in slower growth, fragile. The Growth and skills (2007-09) and The Government hasrising unemployment and increased Strategy fails to address communities and local said that total adultpublic borrowing. We know that growth the prevalent economic government (2009-10); learners will decrease bycannot be achieved through diktats uncertainty experienced minister of state for health 529,000 by 2013, taking (1999-2001) and home by managers, and office (2001-03) more of the skills needed the Office for Budget Political compass for growth out of the“The Government Responsibility has Centre-left employment market.is cutting the deficit predicted that they will have to operate in a Voting reCorD The resilience of the British people hastoo far and too fast, greater schools autonomy post-budget environment Moderately against never failed to bring ourresulting in slower with a reduced growth transparent parliament Moderately for country through tough forecast, increased economic times. Butgrowth and rising unemployment and eu integration very strongly for this resilience needs tounemployment” a further corporation be met by action from a tax cut that will government that takes a have ‘minimal effect’ on growth. systemic, long-term approach to growthfrom Whitehall. Jobs must come from Developing the skills of our workforce that ensures nobody is left behind. Wethe private sector. But government is vital for securing long-term growth. haven’t seen it during the first wastedpolicy plays a crucial role in creating the But the 40,000-place expansion of two- year; let’s not make it two.environment for private-sector growth. month work-experience placements willIts wasted year could very easily become not improve young people’s employment John Denham MP is shadow secretary ofa wasted two years. prospects in the same way that six state for business, innovation and skills The disappointing, but not entirely months of real work would, as proposed and is leading Labour’s business andunsurprising, Q4 2010 contraction by our party’s call for a £600m Youth enterprise policy review, ‘How Britainsounded an alarm for managers in all Jobs Fund. The Government itself has can lead the world in enterprise and skillssectors, highlighting both the sheer scale already said that the target group for and ensure no region is left behind’. www.managers.org.uk _ 15
  12. 12. Should I was practising as a solicitor before the last yes government changed sacking the previous unfair dismissal period fromnatasha Jones two years to one; it isSolicitor and my understanding that be madehead of Cheshire claims have increasedEmployment law year-on-year ever since. My experience as an employment easier? lawyer is that most employees know their rights – better than employers know employment legislation – and will avidly litigate. Staffers will have to work for two A fear of claims can act as a deterrent tobusinesses taking on new employees. I meet many years before being able to file anentrepreneurs who tell me light-heartedly that it unfair dismissal claim, under newis unlikely that I will get any work from them asan employment lawyer – they’re not taking on any government plans. Ben willis asksemployees, mainly because of the red tape. whether extending the length of I believe the current rules hinder the ability mandatory service from 12 to 24of companies to grow which, coupled withthe increased unemployment throughout the months makes senseeconomic downturn, is very relevant. Last yearthe Department for Business, Innovation andSkills stated that at the start of 2009 there werean estimated 4.8 million private enterprises inthe UK. Almost all of these – 99.3% – were SMEsof up to 49 employees. The survey estimatedemployment in SMEs had fallen by 102,000 to13.6 million people at the start of 2009. I believe that 12 months is a short space oftime in the context of induction and training of anew employee and so employers are reluctant totake people on for fear of being sued. As soon asan employee completes 12 months’ continuousemployment, it becomes more difficult to dismissthem, so they simply don’t take the risk – or Join thedismiss them before the 12 months is up to avoid deBateany claim. If it went back to two years, then theentrepreneurs who want to grow their businesseshave got two years to employ staff before fear ofbeing sued and therefore stand a better chance of Concernedgrowing into healthy companies. about the new Employees who have 12 months’ continuous governmentemployment can bring an unfair dismissal claim plans overat no cost to themselves. The employer then has unfair dismissalto spend time defending the claim or money on claims? Emailgetting a lawyer to defend the claim. If you’ve got professional.to wait twice as long to bring a claim, that could manager@lead one to think there will be half the amount of managers.org. phOTO CORBiSclaims. It won’t be as simple as that, obviously, uk or visit www.but if you have to be employed for another year, managers.org.uk/then all of those employees out in the first 12 blog to havemonths would not be able to issue a claim. your say.16_ professional manager _ May / June 2011
  13. 13. DebateCoaLition I’m not vehementlyCLaMPDoWn opposed to these no proposals; I just don’tEarlier this year, think they’ll makebusiness secretary much of a difference.vince Cable outlined karen mannering If a manager wants toplans to double the Company owner and get rid of a memberamount of time an author of Managing of staff, there are lotsemployee must hold Difficult People of ways of doing thathis or her job before such as reorganisingbeing able to claim the company andfor unfair dismissal making themif sacked, from one redundant – whetheryear to two. The the unfair dismissalGovernment said period is one year orthe tribunal system two is irrelevant.was “costly and Judging by attitudestime-consuming” for I have come acrossstruggling businesses, during management courses I run, managers justrevealing that the don’t want to deal with staff performance issues.number of tribunal However, these proposals will give weakclaims rose by 56% managers an excuse to keep people on for a bitbetween 2009 and longer and then get rid of them after two years.2010 to a record Rather than dealing with performance issues236,000 claims. straight away, they’ll be able to delay. I would The pendulum argue that this delay makes it even more difficulton the employment for the manager, however, because by the timetribunal qualifying two years are up the employee will not only beperiod has swung well established within the company, but theirbetween one and two personal life might also be more affected as theyears under the last employee may have taken on loans or mortgagestwo governments. based on their job and salary.The last Conservative These changes might also affect existinggovernment changed employees’ motivation. With the economicit to two years, but it downturn, I have been dealing with a lot ofwas restored to one people who are feeling very unsettled at workyear by the subsequent all of the time and would like to have somelabour government. sort of stability. But they can’t have that if One of labour’s they are fearful that their job has not actuallyjustifications for been confirmed, and so that will really affectchanging the tribunal people’s motivation.period back to one Finally, the proposals also mean there’syear was that a two- a danger of having employees working for ayear period unfairly company for as long as 18 months, but neverdiscriminated against really psychologically engaging in what they’rewomen. When the doing because they fear they might not beproposals to turn the staying in their job. People in this position aretribunal period back unlikely to be working at peak performanceto two years from one because they might not be concentratingyear were announced properly, and may be distracted by consideringin January, the shadow their options, for example, looking at theminister Yvette Cooper job advertisements.argued that this would It all makes for a most unsettling situation,be the case again – and managers may find that staff leave anyway.because women are If they’re coming up for their two yearsmore likely than men and feeling uncertain about whether or notto be in jobs for less their job will continue, it is very likely thethan two years. employee might start looking and find something better. www.managers.org.uk _ 17
  14. 14. 18 _ professional manager _ May /June 2011
  15. 15. interview Simple pleasures Innocent’s Karen Callaghan believes great firms find the perfect fusion of order and chaos – while doing the basics, better. Her recipe works, says Ben walker It all seems a bit contrary. Karen Callaghan is standing amid the psychedelic chaos of Innocent’s Fruit Towers HQ, leaning against a forest-green astroturf wall that is pockmarked by cartoon-style daisies – extolling the virtues of simplicity. “Whenever people ask me about being innovative, I just say we do the simple things, better,” says Callaghan, Innocent Drinks’ people director. “Simplicity in objectives: if your people don’t know what success looks like, how can they be successful? And simplicity in conversation: we always say why wouldn’t we just tell the truth? If it’s DynaMiC important to people, we will share it! It’s DesKs very simple.” “We like to mix it up, Yet simplicity is not the word that so people don’t sit springs to mind when I look around. with their teams and There’s clutter and chaos everywhere: the founders sit with the walls are covered in vividly coloured everyone else. So handwritten notes; someone has hung i sit surrounded by iT up bunting designed in the manner developers. i didn’t know of country-kitchen tea towels; and, the first thing about iT, if you swing your head up, there’s a i still don’t, but i have menagerie of plastic farmyard animals become more interested staring down at you. Contrary maybe,phOTO ChARliE BEST in what they do. Mixing but the contradiction is beneficial, it up makes people more says Callaghan. “My dissertation is on independent in their complexity theory,” she says, referring thinking, given that to the MSc she’s studying towards. “The we don’t necessarily rely theory says that complex systems are at on a teammate sitting their best when they are on the edge of next to us” chaos. We need process and structure; but www.managers.org.uk _ 19
  16. 16. also flexibility and space in the system.A system can go both ways. Too muchprocess, and it becomes too static andcan’t adapt; too chaotic, and it becomesinefficient. The Holy Grail is to get theright amount of process and chaos.” Here, they manage just that, every day.Innocent’s products are loved by theircustomers – they have become a Britishsuccess story in a time when there havebeen too few of them. And they keep“A system can goboth ways… TheHoly Grail is to getjust the right amountof both processand chaos”creating great new products, neverseeming to run out of ideas for deliciousflavours. Given their achievements asa firm, I start to think that Callaghanmight be on to something when shesays order and chaos are actuallygreat bedfellows, opposites that canbe made to complement each other. KarenCertainly, working in such an untamed CaLLaghan, milestones PeoPLe DireCtor,environment must stimulate the little innoCent DrinKsgrey cells. “It can be an energisingworkplace,” she says. “It was never 2006 planned. It’s the staff that have filled it people director  –up with all this stuff. That is what’s given innocent Drinksit its organic feel. What you hear is justthe hub of conversation; it’s just people 2002meeting, doing their work. It certainly head of graduatesounds like it’s on the edge of chaos!” recruitment and development / diversity & inclusion – StandardProcess paradox Chartered BankThe noise; the crackpot décor; andInnocent’s cuddly, kindergarten-style 2000branding contrive to give people an people strategy & hRMimpression of the company that doesn’t consultant – Andersenreally hold water – or, indeed, kiwi juice.“We are very entrepreneurial,  but also 1997very process-orientated,” says Callaghan. various hRM roles – United Biscuits“That’s often a surprise to people.” While Innocent lacks the staid, educationclinical feel of many big food and MSc, peopledrink brands, its values are thoroughly & Organisationbusinesslike, corporate even. Innocent Development (2011),is not in the business of seeking out the University of Sussexweirdest and most outré people Britainhas to offer. In fact, everyone seems very BSc hons, Chemistry,nice, bright – and normal. “We have to be 1st class (1997), University of leedscareful that people don’t think it’s aboutbeing mad or wacky or about being anextrovert,” says Callaghan. “Whether you20 _ professional manager _ May /June 2011
  17. 17. interview
  18. 18. are a geek, or you want to wear the wackyT-shirts, then go for it. But I’m moreconcerned about people being good attheir jobs – so we sweat the recruitmentprocess. We try to identify the differencebetween good and great candidates,and say, ‘let’s look for that’.” Callaghanshows me some software that keeps alive record of all Innocent employees’targets and how they are measuring upagainst them. “We have 95% complianceon employees’ objectives,” she says, “andthe 5% we don’t have is probably becausesomeone forgot to post them up. Lotsof companies say that their internalprocesses and their people reflect theirespoused values. But I genuinely believethat ours do. When recruiting, we askwhether the people we meet are goingto enrich the culture and strengthen ourvalues. Is the company going to be betterwith them on board?”Money motiveInnocent strives to be all the thingsthe public might reasonably associatewith a brand that runs hippyish musicfestivals in London parks: it tries to beenvironmentally proactive, it advocatesfair trade with its suppliers. But its focusis the same as every successful business– commerciality. “Our values are not thatsoft, fluffy or ephemeral,” says Callaghan.“But they capture the things we are, thethings we care about, the things that self-conscious about it – given most ofmake us successful. Not just the things us here are pretty into health. But I alsowe aspire to, which is why, I think, that drink a lot of Innocent smoothies, as youthey resonate well with the team.” might expect!” The commerciality of the business There’s no pretense with Callaghan.was highlighted last year when its She’s slightly troubled by the photographer’s assistant preening her hair – “too bouncy, I don’t really do“Our values are not polished” – and I get the feeling that thethat soft, fluffy or whole company is like this: what you seeephemeral. But they is what you get. Another of Innocent’s brand values is ‘be natural’, and,capture the things incredibly, given that I’m a journalist,we are… not just the everybody I meet is. “Think about our product,” says Callaghan. “It’s anthings we aspire to” unadulterated, natural product.” The same should go for Innocent’s people,directors sold a majority stake to Coca she says: “Be professional – but bringCola. The soft-drinks behemoth now yourself to work! Bring the best versioncontrols 58% of Innocent, but Callaghan of yourself. ”is not worried. In fact, she seems quite It’s a compelling confection, but can itkeen on the products of the new mother last? As Innocent gets bigger, so must it Above: innocent’scompany – and spends some of the handle change. Not only has Coca-Cola messageboardinterview sipping a Diet Coke. “I drink taken over, but the company is leaving contains vividlyit with pride!” she says. Did she always its Fruit Towers HQ, tucked away in coloured well-wishesdrink it in the office? “Well, when I first Hammersmith, and moving to the from guestsjoined I might have been a bit more sparkling Portobello Dock on the other and customers22 _ professional manager _ May /June 2011

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