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Positive Leadership Article in IOD Scotland Newsletter Positive Leadership Article in IOD Scotland Newsletter Document Transcript

  • Autumn 2010 www.iodscotland.com Published for members of the Institute of Directors in Scotland IoD director-general in praise of ‘energy city’ p6 Changing the mix in our boardrooms p14 Unlock the secret of inspiring leadership p12-13IoD Scotland Conference 2010:Cameron House on Loch Lomond • October 29New speakers announced • Book your place now
  • Meet me by the bonnie bonnie banks at Cameron House on Loch Lomond.The world-renowned bonnie banks of Loch Lomond conjure up images of a majestic world of heather-dappled glensand roaring open fires. There’s no better place to watch the theatre of the Highlands unfold than from Cameron House.Whether your event is small and private or a large and flamboyant affair, you’ll have the perfect space to suit youroccasion. With fine dining, loch cruises, championship standard golf, spa breaks or simply chilling out with your newfavourite 20 year old single malt, you will experience legendary Scottish hospitality at its very finest and very warmest.For details or an e-proposal call 01389 722554 or email events@cameronhouse.co.uk C AMER O N HOUS E www.cameronhouse.co.uk Cameron House on Loch Lomond, Dunbartonshire, G83 8QZ ON LOCH LOMOND
  • Institute of Directors Scotland: Autumn 2010 COMMENTThe challenge is IoD Scotland Conference 2010constant: how we Cameron Housereact to it is crucial on Loch Lomond October 29, 2010 by Raymond O’Hare Chairman, IoD Scotland ever before. However, if your business or Inspiring IT CONTINUES to be a challenging time organisation is feeling the pressure at present, this is both a critical time and an leadership for everyone in business at present, and for anyone who has a leadership ideal moment to step back and look at exactly what you are doing. How much of – making role within an organisation. I see many people and businesses your people’s time is being spent on core activities and on core business goals? It is the performing strongly and seemingly unaffected by the current economic a time to verify your strategy, ensure that this is reflected in your business plan, and difference conditions, but I also see a number of then focus on clear and regular companies who are clearly struggling and communication with your teams to ensure Hear Scotland’s having to make many tough choices that everyone understands what needs to top business about what they do next, what they focus be done, when and by whom. leaders give their on and how they prioritise their time and It takes strong leadership to “look up” in resources. either of these situations, take stock and take on how the I have two key messages for leaders, make decisions around what is being person at the top regardless of which category your focused on; and also around what to stop can drive success organisation falls into. doing. Good leaders will take the time to First, if your business is strong and ensure that staff understand where the weathering the economic storm well: this organisation is headed and what their role Book now at is great news, but this is also the time to will be in taking it there. Sadly, I still see www.iodscotland.com be most vigilant about staying focused, some companies where everyone is or call 0131 557 5488 being clear with your staff about the working all hours, margins are tight, and organisation’s strategy and their individual yet the one potential area which could role in helping to achieve this. yield significant returns for the company is See pages 12-13 It’s easy to get relaxed and even effectively sitting on the shelf because for full details complacent with continuous success. everyone is too busy to deal with it. Don’t let this make your This must not be allowed to organisation lazy. Many of happen. The Institute of Directors Scotland your competitors who are The challenge is membership magazine is published not so fortunate at present constant and on behalf of the IoD by will be focusing and relentless. What we Chamber Media Services, prioritising very carefully must recognise is 4 West Park Road, Bramhall, right now, and are likely to that constant Stockport, come out of this current focus, regular Cheshire SK7 3JX. situation stronger, leaner, adjustment and an“ more focused and better environment of Advertising sales: able to compete than decisiveness and Colin Regan, Chamber Media Services empowerment are T: 01925 468403If your business is feeling required at all times, E: colinregan001@yahoo.co.uk regardless of the highsthe pressure this is an ideal and lows your Production:moment to step back and organisation will Rob Beswick, Chamber Media Serviceslook at exactly what experience. T: 0161 426 7957 E: beswick@cssystems.netyou are doing Although every effort is made to ensure the accuracy of material contained within this magazine, neither IoD Scotland norIoD Scotland: Contacts and addresses Chamber Media Services can accept any responsibility for omissions or inaccuracies in its editorial or advertising content.Executive Director: David Watt IoD Scotland: 29 Abercromby Place, The views expressed in this publication areiod.scotland@iod.com Edinburgh, EH3 6QE not necessarily those of the IoD. The carriage of advertisements or editorials inFor all enquiries, contact IoD Scotland this publication does not constitute an Telephone: 0131 557 5488 endorsement of the products or servicesat iod.scotland@iod.com Fax: 0131 557 5818 advertised.www.iodscotland.com Cover picture: Statue of William Wallace inwww.iod.com/scotland Aberdeen – an appropriate image for an issue which centres on inspiring leaders Page 03
  • COMMENT Institute of Directors Scotland: Autumn 2010Where do we go from here? It’snot just politicians who decideONE THING that Scottish businesspeople – and the organisations which Business needs to find its voice elections it would be nice to be in a position to vote for politicians whosupport them – believe completely is to influence the future shape had real control over Scotland’sthat we all need to work in unison to economy and the significant leversfoster long-term economic recovery. of Scotland’s Government, which help it thrive – and also for atWorking together is the only way to least an element of how they raise asachieve sustainable economic growth says IoD Scotland’s executive well as spend money.for Scotland and so too benefit the director David Watt Now is the right time to developwider prosperity of the UK. these thoughts and drive forward a Clearly, business has the prime role Parliament in late autumn this year, set of solutions which can help thein delivering such economic recovery time is now pressing and should focus private sector and the wider Scottishand continued growth. However, to minds among the Scottish business economy grow.achieve that, it is paramount that community and others to get them The IoD in Scotland will beGovernment also has and uses the started on leading discussions within developing its manifesto for nextappropriate levers required to a wide range of settings and client year’s election over the comingfacilitate an environment from which groups. We would support a months and we will be stronglysuch growth can flourish. wholesale, interrogative civic debate emphasising that practical action to In that respect we require a robust on the ramifications of increased support our companies and so ourdebate on exactly how this might powers for Holyrood, particularly economy needed – not just rhetoric.happen north of the Border and now around the contentious issues of tax It is early days; however, the newis the time to have it, with a new raising and what that would ultimately Coalition Government in WestminsterGovernment in Westminster and one mean for the nation’s economy. appears determined to adopt thewithin the year in Holyrood. We need The Institute of Directors has some recommendations of the initialto seriously examine the potential of reservations about the potential for Calman Report regarding the futureany changes to improve or worsen our some of the changes suggested which role of the Scottish Parliament. Aeconomic performance and to may cause additional industrial costs. number of things have moved onconsider closely what the implications However, equally, we have always had since Calman’s final report, amongwill ultimately be for Scottish business a problem with a Parliament that them the significant deepening of theand our wider economy. simply spends money and does not recession, a UK election bringing new The recently launched campaign for have any accountability for raising it. political attitudes to Downing Streetadditional fiscal responsibility at Going into next year’s Scottish and a new attitude to devolvedHolyrood – or “devolution-plus” as governments, not to mention the newsome commentators have dubbed it – coalition’s likely taxation policy.requires us all to get involved in such a There seems to be an opportunitydebate. A debate, by the way, not for reasonable debate beforemerely limited to the business everyone dives off into the hustingscommunity alone but involving much for next year’s Scottish electionswider aspects of Scottish civic society. assuming their traditional positions.It is certainly a major matter of Central to these debates, must beimportance – probably determining the voice of Scottish business – largeour taxation setting for many years to and small. Business growth is, after all,come, possibly for a generation – and ultimately what will get us out ofit is vital it’s not just decided by the recession and drive our economicpolitical classes without genuine ref- growth in the future. We can’t justerence to the real growth generators. leave it to politicians to think up and With legislation around this issue apply solutions: they need our helpdue before the Westminster and advice. ������������������������������� Get marketing media that’ll help you stand out from your competition. Get results. We produce websites, brochures, brands, direct mail and customer magazines - online and in print - for some of the UK’s biggest companies and lots of its most promising small ones. And we’re damn good at it. Say hello@reddishpink.com or call us on 01506 433422 www.reddishpink.com reddishpink publishing | web | design | consultancyPage 04
  • Institute of Directors Scotland: Autumn 2010 IOD INFORMATIONKeeping in touch: A coupleof things to remember... Wherever your work takes you... the IoD would like to keep in touch via email... ... that way we can make sure you know first about all our events and members’ services... ...so please make sure we have your up-to-date email address. Email IoD Scotland’s admin team at iod.scotland@iod.com with your current details, and we’ll make sure you don’t miss out on the latest news... ... wherever you are! New: IoD And bookmark podcasts on us online! leadership Check out our ON LINE NOW: See the IoD enhanced website: Scotland website for podcasts on leadership. www.iodscotland.com IoD Scotland chairman Raymond O’Hare talks to Including - some of our most respected business people on the role • Comprehensive details of leaders have to play in their IoD Scotland events organisations. The series kicks off with Sir • Our services to you: what Sandy Crombie, former chief membership means executive of Standard Life and now a non-executive • Training and director director for RBS. development Go to www. • News, views iodscotland.com now to hear his and opinions fascinating and • Book online for all thought- provoking events and courses views. Page 05
  • NEWS Institute of Directors Scotland: Autumn 2010Tell the world your success,IoD chief urges AberdeenCoalition on right track but more needs to be done on relaxing regulationsIOD DIRECTOR GENERAL Miles Templeman over international confidence and the scale and through difficult decisions better than a singleurged Aberdeen to do more to promote its impact of the anticipated public sector cuts. But party administration could.value to the UK economy during a visit to the he stressed: “It’s important not to be too “In terms of direction, we are strongly behindcity at the start of September. pessimistic. I don’t see evidence of the ‘double what the Government is trying to do. They seem Mr Templeman told an IoD lunch that he dip’ recession.” to be non-ideological and are looking at thethought the city was not as appreciated The economy was also not being helped by issues on a case-by-case basis. They also seemelsewhere in the UK as it should be, but that skills shortages, which he acknowledged was a to understand that success lies in businessperhaps some of the fault for that lay with the particular problem in Aberdeen. We have to strength,” he said.city itself, for not doing enough in stating the recognise that 40 per cent of children leave The depth of the coming public spendingvalue of its role. school with no qualifications: that was a statistic cuts would change the whole structure of the The city had made an immediate impact on that had to be challenged. UK public sector, he admitted, and it would behim, he said: “I’m already impressed with the He was keen to see British businesses take the painful, but putting off taking the painfulambition of Aberdeen. I had not appreciated initiative more and look to export. “British medicine will only delay recovery. It was nohow strongly it wants to be the centre of all industry has got to drive forward and take the good preserving jobs artificially.types of energy production. The city needs to opportunities that exist overseas,” he said. The Government had not got everythingtell Britain and Europe of that ambition.” Turning to the political scene, he said that at right, however, particularly on the regulatory He was keen to learn as much as he could first there was concern over the burden. A commission must be set up to look atabout the city and its ambitions during his creation of a the issue, he said, but there had been littlevisit, particularly in the development of coalition movement on this issue thus far. He highlightedrenewable energy. “I’m here to get a government. the problems of infrastructure planning. In thedetailed understanding so that I can However, “so far time it took Britain to approve Terminal 5 atspeak about these issues with ministers.” so good”. The Heathrow, China had built 400 airports, he said. During his address, Mr Templeman gave coalition is “I am not yet convinced Governmenthis assessment on the current economic working well, understands how much of an issue planning ispicture as well as the IoD’s early reaction and has the to business,” he said, but he knew thatto the new Government. On the potential to Aberdeen’s business community fullyeconomy, he believed we were drive understood its significance: “I have already seenbumping along the bottom a the issues of transport around Aberdeen”, helittle, but his perception was said.that Aberdeen was He ended by pointing out the differenceperforming better than between business and government. “At the endthe rest of the country. of a board meeting you may feel good because Elsewhere, he said, “I get you have a strategy, but business knowsa strong impression of strategy is just a beginning. Government seesalmost a pause in the the strategy as the achievement. We need to seeeconomy. Companies that Government focusing on delivery.”were talking about slow Most of what we want from Government isgrowth are now in a static less, he said: Less intervention, less regulation,position.” As he travelled less interference and more consistency of policy.round the country therewas a general impression Talking points: Pictured outside the Marinethat it is too early yet to Operations Centre at Aberdeen Harbour are (frompush forward. left) David Watt; Cameron Ramsay, the new A number of factors chairman of IoD Aberdeen; Colin Parker ofwere holding the economy Aberdeen Harbour Board; Miles Templeman andback, including concerns Mike Bowyer, IoD Aberdeen’s deputy chairman Book your tickets now for the IoD Scotland Conference 2010 Inspiring leadership – making the difference Cameron House on Loch Lomond • 29 October • See page 29 for more details Register online at www.iodscotland.comPage 06
  • Institute of Directors Scotland: Autumn 2010 FEATURE ON: REGISTERS OF SCOTLANDThe Registers of Scotland is exporting its expertise in property and land registration around the world, helpingfledgling and troubled nations gain confidence in their own systems and providing economic stabilityR EGISTERS of Scotland (RoS) is well- known for its role in safeguarding records relating to property and land ownership in Scotland. What Scotland happy to export the wisdomis less publicised is the other life-changingwork the organisation undertakes, includingconsultancy on an international level. RoS became a Trading Fund in 1996 and is aself-financing, commercially-focused of its Registersorganisation, providing customer-centricservices at no cost to the public purse. RoS’sincome comes from its registration andinformation provision work and is largelydependent on the economicclimate and the buoyancy of theproperty market. Scotland is a world-leader indeveloping systems forrecording land ownership andland transactions, with aheritage dating back to the 12thcentury. This experience isbeing put to good use by RoS’sInternational Consultancy Group(ICG), which has been appointedby governments, especially indeveloping countries, toimprove their landadministration processes. The ICG manages all forms ofinternational liaison for RoS,such as general visits fromrepresentatives from other landregistration organisations,approaches from organisationsand individuals for information Helping hand: A symbol of the fledglingabout the Scottish system of to reduce poverty. Kosovan nation, Newborn. RoS has played aland registration, and requests for support for Kenny Crawford added: “Developing vital part in helping Kosovo establish a stableinternational project activities or, more recently, countries which are building new land climate for land and property registrationleading international projects. information systems have the benefit of not Kenny Crawford, head of commercial services being restricted by existing systems, and can campaign on First Registration activities and toat RoS, commented: “We began developing an therefore implement optimal solutions from the mobilise support for the implementation ofinternational expertise in land law and very beginning. This is where RoS can use its government reform of the Immovable Propertyregistration in the 1990s and believe we are at experience and expertise to help build these Registration Office (IPRO), the equivalent of thethe forefront of land registration practice. In systems.” Registers of Scotland in Albania.1996, we were appointed advisors to the Isle of RoS is currently undertaking projects in the Kosovo: In 2010, RoS started working withMan Government in relation to the following countries: the Kosovo Cadastral Agency (KCA) to assistcomputerisation of its land registration Malawi: The Republic of Malawi and with an awareness campaign to improveactivities. Since then, the ICG has been involved Scotland have long-standing ties of friendship communication both internally between KCAin numerous land administration projects and in 2005, the governments of Malawi and and municipal cadastral offices and externally,worldwide, where we provide a variety of Scotland entered into a Co-operation between the cadastral authorities and theexpertise to such projects.” Agreement. RoS is collaborating with the general public in Kosovo. This is funded by the Land is the ultimate resource and its role in a Malawi Government to deliver improvements World Bank.national economy is hugely important but not for the Ministry of Lands. This partnership has Uganda: RoS is working on the projectalways obvious. Without secure land rights, the added benefit of identifying opportunities ‘Design, Supply, Installation andthere is no commitment to sustainable for RoS employees to develop their skills and Implementation of the Land Information Systemdevelopment, as there will be little willingness experience through deployment of their and Securing of Land Records’. RoS willor confidence to make long-term investments. expertise on various projects relating to land specifically provide the study tour element of The question of liquidity and mortgaging of administration in Malawi. This project is part- the project, including the evolution of theland and real estate assets is imperative to funded by the World Bank’s Business registers, IT, HR, business planning, andaddressing poverty, financial and capital market Environment Strengthening Technical management at enterprise level, etc.development and large-scale economic growth Assistance Programme. In addition to these specific projects, the ICGand stability. For many people, personal Additional co-ordination of the project is has also been actively involved in hosting studyownership of a house, apartment or land plot is being provided by a registered charity, visits and supplying training services in both theone of the most valuable assets they can hold. Challenges Worldwide, which offers UK and abroad. RoS has hosted visits from landDeveloping efficient land administration, opportunities for individuals to volunteer to administration officials from many countriesredistribution and reform policies, which place work in developing countries. around the world, including China, Kenya,the rights to land and water in the hands of Albania: RoS has been working as part of a Lithuania, Namibia, Russia, Thailand, Iraq andordinary people, can provide security and help consortium to complete a public awareness the Ukraine. Page 07
  • DIRECTORIAL DEVELOPMENT Institute of Directors Scotland: Autumn 2010Directors: it’s time to takethe lead in all that you do “by Michael Fass Leaders provide time for their vision to catch on (the most oftenWE EACH have our own personal cited reason for the failure of so-favourite leaders who we most called change processes is the lack ofadmire, but there are precious few of time and resources to embed them).them! There are far more that we do Leaders encourage criticism of theirnot admire and in the period we are proposals and listen and learn from Leaders require an inner strength thatgoing through at present, there are them while holding to their course. does not need to prove anything todefinitely some leaders of the past Leaders need regular time off forthat we would prefer to forget about. refreshment (my colleague at the IoD, anyone and an active willingness to help However, directors have the Mike Willis, says that only 12 per cent others achieve their best and receive theresponsibility to lead forward the of ideas for making progress come toorganisation in which they are set. If them while leaders are at work). accolades and rewards that they deserve.the directors are not doing so, then Continual engagement with thewho is? culture of the organisation and being Leadership is about presence alongside customers enables leaders(Senge, 2005) not power, stature not to prepare themselves to take thestatus and character not charm. An next steps in the development ofeffective leader is one who is as their organisation.concerned with relationships as he or The best leaders know how toshe is with outcomes, exercises the bring out the best in others, not thevirtue of self-control and patience worst! They are able to inspire otherswith others as much as making to achieve great things and theyprogress, and actively encourages the know when to be up-front and wheninitiative of others – despite the fact to get out of the way.that, from time to time, this will Finally, leaders need to have ainevitably lead to mistakes. At such a measure of self-belief so that othersjuncture, the leader doesn’t then will decide to follow them becausepoint the finger and lay the blame. these others believe that they know Leaders require an inner strength what they are doing and where theythat does not need to prove anything are going.to anyone and an active willingness How are we doing?to help others achieve their best andreceive the accolades and rewardsthat they deserve. © Michael Fass 2010. Michael is Leaders know ahead of time that responsible for the personal andthe wheels sometimes will come off professional support andthe best laid plans and have fall-back development services of thepositions so that their organisation Institute of Directors Scotland. Hewill not be destroyed. The ability to can be contacted on any matter tospot potentially successful emergent do with directorial development onstrategies requires significant risk- 0777 4740423. or viataking. michaelfass@iod.com DIRECTOR TRAINING: The Role of the Non-Executive DirectorDate: Thursday, November 18 directors contributing to corporate goals. many boards on strategy and performance. AVenue: Royal Scots Club, 29 Abercromby Place, The course will cover: graduate in economics, he worked in marketing Edinburgh, EH3 6QE, • Clarification of how and why non-executive with Reckitt & Colman and the ElectronicsTime: 9:15am and finishing at 16:30, with a directors can strengthen a board Rental Group and served as head of corporate break for lunch between 13:00-13:45 • How best to secure an appointment as a services with the SDA before returning toCost: £355 + VAT non-executive director industry in 1990 where he was CEO of a global • Clarification of the contribution that non- electronics company. Mike has lectured The RoleTHIS one-day course will help you to be an even executive directors can make to the board of the Company Director and The Role of the Non-more effective non-executive director of the • An outline of the duties and responsibilities Executive Director on the IoD’s Companyboard. It will outline the specific legal and of a non-executive director Direction programme for the past seven years.corporate responsibilities of a non-executive • Clarification of the qualities and experiencesdirector and ensure that you have a renewed needed to a NED appointmentappreciation of your fiduciary duties. • Provision of an overview of the Combined HOW TO BOOK: The course is intended for individuals who are Code and Higgs Report Contact IoD Scotland on 0131 557 5488 orcurrently non-executive directors; those seeking • An appreciation for appropriate methods for director.scotland@iod.coman appointment as a non-executive director and finding, selecting, appointing and rewarding For more information, see www.iod.com orthose looking to appoint a non-executive non-executive directors. www.iodscotland.com, or call 0131 524 9890,director. The course will appeal to all those who The course will be led by Michael Willis. see www.scottishdirector.com or emailwish to become high-performing non-executive Michael is a business advisor and consultant to director.scotland@iod.comPage 08
  • THE SCOTTISH DIRECTOR DEVELOPMENT CENTREEXECUTIVE COACHING AND MENTORINGSupport from respected, senior, business practitionersWHAT WE DO… WHAT WE WON’T DO…The Scottish Director Development Centre supports But there are some things we won’t do. You won’tdirectors and senior managers in their work to enhance get an inexperienced coach/mentor and you won’tperformance, business achievement and success. Our get someone upon whom you become dependentExecutive Coaching and Mentoring Service is one of the in the longer term.tools we provide to support you in your role. Our qualified coaches and mentors are all wellIndividuals may wish to: respected business and corporate practitioners with� Increase confidence a wide experience and knowledge across a variety of� Set clear personal outcomes business sectors, industries and roles. Their task is� Improve decision making to coach/mentor you with particular issues in mind,� Reduce stress and then step back to let you get on with it!� Lift performance� Gain creativity� Increase credibility� Solve a specific business issue “Coaching gave me a chance to speak myOrganisations may wish to: mind, voice my concerns and bounce ideas”� Retain key people CEO, Fish Processing� Improve staff management skills� Reduce conflict “The coaching has shown me the value of� Support high flyers� Increase Director/senior manager commitment talking to someone from outside the business on a confidential basis. I now feel more Executive Coaching & Mentoring� Challenge traditional thinking confident, with a more structured approach” Managing Director, Aggregates “Coaching has been useful in getting me to reflect on issues … It makes me take time out to think about what I’m doing – and can flag up issues I may not be addressing. It’s good to discuss with someone who understands business – and who comes up with some different ideas.” CEO, Housing Association Tel: 0131 524 9890 director.scotland@iod.com
  • SKILLS Institute of Directors Scotland: Autumn 2010IoD joins art school to designtrail-blazing training packageCreating cultures of innovationthrough creativity and design:The Glasgow School of Art andthe Institute of DirectorsIOD SCOTLAND has teamed up with theworld-renowned Glasgow School of Art toproduce an innovative training programmethat it is hoped will create a new wave offlexible business leaders. The programme will address skillsutilisation through transformational learningwith leaders and managers in applyingcreativity through design. The focus will beon training leaders how to use theknowledge and expertise of their workforcein applied creative projects which have thebenefit of generating innovations for thebusiness or service. Through collaborative creativity processesand methods, we will look to create ‘T-shaped’ thinkers who can use their skillsflexibly and integrate them optimally with • to create a culture of creative or markets, and initiate the changeothers across a range of projects. collaboration and innovation, evidenced towards an enhanced culture of This approach addresses the challenge in compelling ideas for new products, collaboration and creativity in theiridentified in the New Horizons report from services or markets. organisations.the Joint Future Thinking Taskforce on The project will use Glasgow School This output will be designed so that itUniversities, which states that “the nature of of Art’s expertise in creativity, design can be applied across all of Scotland’sskills that are needed in a knowledge and innovation, together with the key sectors, and will be applicable ineconomy is changing: a premium is being knowledge and expertise of Institute of both business and service organisations.placed on creativity, flexibility, adaptive Directors’ membership, to create a We have had the benefit of workingcapacity and the ability to work in complex leading-edge training package for with Skills Development Scotland, forteams across disciplines”. leaders, which will enable them to example, to apply design thinking in Our proposal is a means of utilising skills understand and apply design thinking their service provision. We believe thatto best effect: in the individual and collective in their organisation in a customer- this approach – of using the designdevelopment of the workforce, to create focused process that encourages process as an applied tool forhigher value innovations, increase innovation. synthesising multiple inputs to achieveproductivity through better collaboration, The goal is to enable leaders to better a common goal – will achieve the SFC’sand to generate value for businesses and deploy existing skills, creativity and goals of improving the utilisation ofservices in Scotland. talent in their workforce. This approach skills and enhancing innovation The overall objective for businesses is to has several advantages: it places high capability in the workforce.create a ‘culture of innovation’ in which The project will also identify areas tocreativity is a collective skill embedded in What’s T-shaped thinking? embed the thinking in boththe organisation. In other words, it is ‘T-shaped’ individuals are those possessing undergraduate and postgraduateassumed that while there is a marginal depth of skill (signified by the vertical stroke of education in Scotland with partners inbenefit for a company in creating a single the ‘T’) as well as a collaborative personality creativity and design, businessinnovation, there is an overall general (represented by the horizontal bar). Their management, and service innovation.benefit for a company to create the The Glasgow School of Art will in-depth knowledge allows them tocapability for sustainable innovation. To collaborate with the University ofachieve this, we propose to work participate effectively in the creative process. Glasgow and other partners to developcollaboratively with industry leaders Their co-operativeness requires (a) empathy new Masters courses, pathways andthrough the Institute of Directors to explain and (b) enthusiasm for other people’s work. programmes in this area.how creative thinking and design processes Scotland has a long tradition ofcan be integrated in organisations to value on employees and their potential, invention and innovation, placing us in aimprove productivity in areas key to the it uses leadership creatively and strong position to work together tofuture success of the business: effectively, and is well suited to creating create the capability within our • to achieve a fuller integration and an innovative workplace within the businesses, our society and ouroptimisation of skills in the workplace constraints of the current economic economy for sustainable innovation. • to train high level leaders in the context. In addition, we will develop ‘Creating Cultures of Innovation’ isunderstanding and application of creative training courses so that leaders can supported by the Scottish Fundingprocesses apply this thinking in actual projects in Council and forms part of the Scottish • to enhance the creative capability of the order to embed the thinking in practice, Government’s strategy for Skillsworkforce achieve innovation in products, services Utilisation.Page 10
  • Institute of Directors Scotland: Autumn 2010 FINANCE MATTERSRelief on its way for thoseshowing a little enterpriseT HE Enterprise Investment Scheme (EIS) was launched to assist unlisted UK trading companies seeking financial backing. Provided EISinvestors satisfy various conditions, they canclaim a range of tax reliefs both on their initialsubscription and on any future sale of the EIS In the current constrained lending environment,shares. The recent increases to both income securing affordable finance to fund futuretax and capital gains tax have increased thevalue of the EIS tax reliefs set out below: development and expansion plans can be problematic. Fiona Donaldson, of Income Tax Relief: An income tax credit of Springfords Chartered Accountants, takesup to 20 per cent is available on the first a look at the Enterprise Investment Scheme£500,000 of qualifying subscription in new as one possible route to achieve this.shares of an EIS company. Capital Gains Tax (CGT) Exemption: EISshares held for a minimum three-year periodcan be sold free of capital gains tax, as long as investment is made, with a limited carry-back of sale, not the original owner who benefittedany income tax relief has not been previously against liabilities of the previous year. Any in the first instance.withdrawn. Should a capital loss arise on the surplus will be lost, so planning is therefore The recent Budget announced thatshares, it is reduced by any income tax relief required to obtain the maximum relief. The legislation is to be introduced which willgiven on the initial subscription and thereafter same applies when claiming a capital loss as prevent gains realised after June 22, 2010 fromcan be used to reduce capital gains tax an “income” loss. both being deferred under EIS and qualifyingelsewhere or “converted” into an income loss Claiming the income tax relief may simply for Entrepreneur’s Relief. Assuming that theto reduce income tax liabilities in the year the reduce a tax liability rather than producing an legislation is enacted as anticipated, investorsloss arose, or the previous year. actual refund, but either may also have the may therefore be faced with a choice of paying effect of reducing future payments on less tax now or more tax later. Capital Gains Tax Deferral: Chargeable account, producing a further cashflowgains arising on any asset can be “reinvested” advantage. The futureinto EIS shares, deferring the capital gains tax It is important to remember that in the case EIS remains a beneficial way for investmentsliability which would otherwise arise. The EIS of deferral relief, the capital gain is being to be made in UK businesses, providinginvestment must be made within one year deferred and not eradicated and will become funding for growing companies and a verybefore and three years after the gain arises. taxable when the EIS shares are sold in the attractive range of reliefs for the investor. future at the rate applying at that time (unless Income tax reliefs can directly reduce the Obtaining the reliefs the deferred gain is reinvested into further current and/or previous years’ tax cost, while To secure these reliefs, conditions must be qualifying investments). To secure the CGT the CGT reliefs may result in a tax-free disposalmet by both the company and the individual. exemption, which can, if the EIS company is a of the shares and the potential to ease cashIt is here that the legislation becomes complex success, be the most valuable relief, it is crucial flow difficulties by deferring a CGT liability.as the rules which determine whether a to be aware of when the three-year qualifying For more detailed advice on this or anycompany or an investor will qualify under the period ceases. other tax issues, please contact FionaEIS regime are notoriously rigorous. It can be EIS reliefs will be withdrawn if the investor Donaldson or Ian Haynes at Springfords onpossible to fall foul of these labyrinthine rules or company ceases to qualify for EIS status and 0131 440 5000.without even realising it. care should be taken to avoid any action or Alternatively, see www.springfords.com The main qualifying conditions for a activities on either part that could affect this.company revolve around its size and nature of Springfords recommend that regular reviewsthe trade, the amount to be raised (which are undertaken to ensure that the companymust be paid in cash) and how the and investors continue to be EIS compliant.subscriptions are to be spent. Spouses or civil partners can transfer EIS For the individual, the foremost concerns shares between them free of CGT and withoutare the level of their investment in the losing EIS reliefs. Interestingly, if the sharescompany, prior or current connections with subsequently cease to qualify for reliefs, anythe company, and the value they expect to disallowance of tax credits is made on thereceive from the business in return for their spouse/partner owning the shares at the timesubscription. “ This is an extremely simplified and verybasic overview of just part of the underlying Claiming the income tax relief may simply reduce a taxlegislation. Anyone aiming to qualify for EIS,whether as an investor or company owner, liability rather than producing an actual refund, but either mayshould take advice at the outset. also have the effect of reducing future payments on account, producing a further cashflow advantage”Using the reliefs The EIS income tax credit can be set onlyagainst income tax liabilities in the year the Page 11
  • EVENTS Institute of Directors Scotland: Autumn 2010 IoD Scotland Conference 2010 Cameron House on Loch Lomond • 29 OctoberInspiring leadership –making the difference W E’RE just over a month away from Gary Kildare is a Scot of truly global reach. As finding out just how the really IBM’s vice-president, human resources, for inspiring business leaders make a Americas, Europe and Asia Pacific, Gary is difference to their organisations – at the IoD accountable for 400,000 employees round the Scotland annual conference world. A confirmed ‘internationalist’, he has To be held at the stunning Cameron House on deep experience of major international business Loch Lomond – recently named the UK’s Hotel transformation, acquisitions, talent and change of the Year 2010 and a suitably inspiring location management and is interested in securing for this prestigious event – on October 29, the competitive business advantage through event will showcase the leadership talents of people. some of the country’s top business people, The third new speaker also has an IT including Lord Robert Smith, chairman of the background, Robert L McDowell, vice- organising committee of Glasgow 2014, the president, information worker business value, Weir Group and Scottish and Southern Energy; Microsoft Corp. Robert is dedicated to helping Bob Keiller, CEO of the global oil and gas customers maximise their use of current engineering company Production Services Microsoft Office technologies in ways that Network; and Peter Vardy, the chief executive of significantly add business value to their car retailer Peter Vardy Ltd. organisations. And to this impressive list we’ve recently Overall, our six speakers offer an impressive announced three more speakers, all of whom depth of experience across all business sectors. will bring their own considerable talents to bear In addition to the keynote addresses, the on our spotlight issue of how business leaders conference will also feature a number of can make the difference in post-recession workshops on themes connected to developing Conference Scotland. inspiring leadership, and a showcase of speakers: Sue Bruce, currently the chief executive of inspirational young people from the Prince’s Sue Bruce, Aberdeen City Council but soon to be taking up Scottish Youth Business Trust (PSYBT) with a Gary Kildare the same role with Edinburgh City Council, has a black tie dinner to round off proceedings at the and Robert challenging leadership role as she tries to end of the day. McDowell deliver high-quality services as the spending So join us at Cameron House on Loch cuts bite. Sue will offer an insight into how the Lomond to hear about the common person at the top can manage these demands denominator of all organisations that flourish, while keeping staff morale high and focused on no matter what the market conditions: truly service delivery. inspiring leadership. “As Scotland comes back from recession the spotlight is on those who inspire leadership, those who can and will make a difference to Scottish business and its economy. This year will be important for seeking opportunities, facing challenges, understanding change and moving forward in pursuit of new successes. Are you equipped to take your organisation forward? Come along to the IoD Scotland conference on Friday, 29 October and tap into a wealth of experience and knowledge from top business minds – not just ‘talkers’ but ‘do-ers’ David Watt, Executive Director, IoD Scotland Reserve your place now!Page 12
  • Institute of Directors Scotland: Autumn 2010 EVENTS “ The stunning Cameron House on Loch Lomond – recently named the UK’s Hotel of the Year 2010 – is a suitably inspiring location for this prestigious event... Event: IoD Scotland Conference 2010 Conference Venue: Cameron House on Loch Lomond speakers: Date: Friday, October 29 Already Time: Conference begins at 10am, concluding 5pm confirmed to Conference dinner begins at 7pm with pre-dinner drinks speak at the conference Concludes at 11pm are Lord Cost: Conference Robert Smith, Full delegate (24hr) * – member £385.00 + VAT Peter Vardy Full delegate (24hr) * – non-member £435.00 + VAT and Bob Day≠ delegate – member £205.00 + VAT Keiller Day≠ delegate – non-member £235.00 + VAT * 24hr delegate rate includes full day attendance, conference lunch, conference dinner and overnight accommodation on Friday, 29 October ≠ Day delegate rate includes full day attendance and conference lunch. Excludes accommodation and dinner. Conference dinner only Member £105.00 + VAT Non-member £125.00 + VATOur guest speakersOUR pre-dinner speaker will be Michael Russell MSP, OUR post-dinner entertainment will be provided byCabinet Secretary for Education and Lifelong Learning. John Lenahan, an American entertainer who has A graduate of Edinburgh University, Michael worked become a popular and well-established star in the UK.in the media from 1974 to 1992. He joined the Scottish Hailed by The Guardian as “the mascot of a magicalNational Party in 1974 and held a number of senior renaissance” , he was thrown out of the Magic Circle forparty posts before becoming the party’s first full time revealing the secret behind a card trick used by conChief Executive in 1994. artists to fleece unsuspecting victims. He was elected to the Scottish Parliament in 1999 as John starred in BBC’s Secrets of Magic and hosted hisa Regional Member for the South of Scotland. In 2004 own BBC2 series, Stuff The White Rabbit. Other creditshe stood for the leadership of the SNP. include presenting the travelogue Open Road and Mr Russell lost his seat in 2003 and returned to a appearances on How Do They Do That?, TFI Friday andmedia career but was re-elected for the same region in Richard & Judy. He also fronted ITV’s HoaxBusters, again2007. Before his current post he was Minister for lifting the lid on scams, and has toured the worldEnvironment, followed by Minister for Culture, External supporting the likes of Victoria Wood, Lenny HenryAffairs and the Constitution until 2009 when he was and Jack Dee with his finely honed corporate cabaretappointed Education Secretary. act. He is the author of seven books including one novel,has one son and lives with his wife in rural Argyll.To book:See the booking form included in this issue... or book online at www.iod.com/scotland ... or for furtherdetails, contact the event organisers, First City Events (Scotland) Ltd on 07721 530115 or 07711 432745to reserve your place. Alternatively, call the IoD head office on 0131 557 5488. Page 13
  • EVENTS Institute of Directors Scotland: Autumn 2010 Breaking down the doors to the boardroom IOD SCOTLAND is hosting an all-day This is the third year that IoD Scotland has Event: Women into the Boardroom conference which aims to help break down Venue: George Hotel, George St, run a conference focusing on women in some of the barriers preventing the Edinburgh business. Discussion points for this year‘s country’s top female business leaders from Date: Thursday, September 30 event include women leaders in large taking their rightful places in the corporate businesses, leading a corporate boardrooms of our biggest businesses. Time: 8.30am - 2pm portfolio career, the public boardroom and Just 12 per cent of the current FTSE 100 Price: £60 + VAT (members), promoting your own image: what do you have female board members – a figure which £70 + VAT (non-members) want people to say about you? is reflected in Scotland’s top private and public Book: Call IoD Scotland on Speakers include Jann Brown of Cairn sector institutions, too. Clearly this suggests 0131 557 5488 or Energy, Jane Wood from Scottish Business in women are woefully under-represented in UK email iod.scotland@iod.com the Community, Linda O’Donoghue, IBM, and boardrooms, so on September 30, at the or book online at Karen Carlton, the Commissioner for Public George Hotel, Edinburgh, IoD Scotland is www.iod.com/scotland Appointments in Scotland. Caroline looking to put this right. Donaldson and Lorna Hudson from Individual We’ve pulled together an impressive line-up Caroline Donaldson, a founding director of Impact will facilitate workshops during the of leading female executives to shed some business consultants Kynesis, commented: “All day, focusing on specific issues. light on the challenges facing women in too often there are too few women in the After researching delegates’ views from business, and by the end of the day we hope pipeline gaining the experience needed in previous conferences, this year’s event will be to have inspired delegates to re-focus their executive roles. We need to be more proactive more interactive, with extra time built into the efforts in tackling this inequitable split in the in the recruitment process, and although there schedule to allow more general discussion boardrooms of Scotland’s businesses. are a number of voluntary initiatives over issues raised during the day and an One of the conference workshop facilitators, underway, it seems more has to be done.” extended Q & A session with the speakers. Karen Carlton Conference speakers: Jann Brown Mrs Linda O’Donoghue Finance director, Cairn Energy PLC Director, IBM, and Greenock Site Executive Jann Brown is both the finance director of Cairn Energy PLC and sits as a non-executive Linda O’Donoghue joined IBM in director on the Cairn India board and is SID 1988 as a sponsored CIMA on the board of Hansen Transmissions Jann Brown (Chartered Institute of International, an engineering company listed Management Accountants) in London. As such she is well acquainted Karen Carlton student. with the airports between the UK and the Her first management position, after Commissioner, Public Appointments rest of the world. qualifying with CIMA, was financial services She is one of a handful of female finance in Scotland manager in 1993, followed by further finance directors of FTSE listed companies having management roles. taken on the role at Cairn in November 2006 Karen’s career spans both the public and Linda moved from finance in 2003 to take eight years after she joined the company. private sectors in the UK and abroad. Her up the position of project manager, contact Jann is an all-round finance professional with early years were spent in the health service centre optimisation where she was the lead experience of operational and corporate and the hospitality industry before moving project manager for Europe, formulating accounting, taxation, planning and to Australia where she worked for the strategy IBM’s contact centres in Europe, negotiating transactions, raising finance and Victoria Government during the creation of Middle East and Africa (EMEA). dealing with external stakeholders - its industry training commissions. On her In 2004 Linda became project manager, governments, their agencies, shareholders, return to Scotland Karen worked in a business growth initiative which focused on analysts and the banking community. number of senior HR roles, including as the the commercialisation of IBM’s integrated The finance function in Cairn is very much first director of Investors in People Scotland. supply chain across EMEA. a team that aims at all times to work with Karen then became MD of an organisation 2007 saw Linda take executive senior management in leading cross-cultural development company, before setting up responsibility for the solutioning and service and cross-functional teams to achieve her own business providing HR and delivery for all business transformation results. This approach paid dividends in organisation development services. As part outsourcing supply chain management 2008 when the Company received the of her portfolio, she became an independent clients in EMEA. Accountancy Age 2008 Finance Team of the assessor monitoring Scotland’s public In March 2010, Linda took on the Year Award. appointments process. She was appointed additional role of Greenock Site Executive, Jann holds an MA from Edinburgh Commissioner in June 2004. the first time a woman has held that position University and joined Cairn in 1998 after a This role is part-time; she is also a member in its 60-year history. career in accountancy. She is a member of of the appointments panel for the BBC Linda is also the Scottish Leader for IBM’s the Chartered Institute of Taxation and sits Audience Council and is a NED of the gender diversity focus groups, Connecting on the Council of the Institute of Chartered Broadcast Training and Skills Regulator and Women@IBM initiative. Accountants of Scotland. the Royal Zoological Society of Scotland. Linda is married with two sons.Page 14
  • Institute of Directors Scotland: Autumn 2010 EVENTSConference speakers: Events diary IoD Scotland Golf Challenge 2010 Date: Friday, 24 September 2010 Time: First tee-off 1:30 p.m. Venue: Ladybank Golf Course Cost: £70.00 + VAT IoD Scotland invites you to enjoy an afternoon of golf at the glorious Ladybank Golf Club and to compete for our three trophies. The golf competitions include the inter- regional Golf Challenge for the Ian Stevenson Trophy, as well as individual competitions for the Corporate Risk Trophy and the Bowring Trophy - the individual stableford and scratch Jane Wood, Chief executive, competitions. Ladybank was a final qualifying venue for Scottish Business this year’s Open and is widely regarded as one in the Community of Scotland’s top courses. First tee-off time is 1:30 pm. We start Speaker: Gavin Hastings An experienced and high-level strategist proceedings with a soup-and-a-roll lunch and communicator, Jane has worked with from 12:15 before the golf, and end with a the performance of your business from the both national and local governments on two-course meal to end the day at approx varied experiences of the co-founders of developing public/private sector 6pm followed by a presentation of prizes. The Positive Leadership Limited, Graham Watson partnerships in the areas of regeneration, fee covers the cost of both meals and the and rugby legend Gavin Hastings OBE. For community asset management, retail-led prizes. this unique event they will joined by a special regeneration and corporate responsibility. This is a fun event played in a convivial guest, former England rugby star and current Previously head of corporate affairs for atmosphere with pleasant company and, coach of Scotland, Andy Robinson. Scotland and Northern Ireland for Alliance hopefully, under fair skies - well worth a day Positive Leadership Limited (www. Boots, Jane is also chair of Essential out with business colleagues. When booking, positiveleadership.co.uk) has developed a Edinburgh, Scotland’s largest Business please inform us of all handicaps. proprietary leadership strategy which Improvement District, and the founder of optimises the performance and presence of Retail Rocks, a private/public sector retail- How to Book: leaders throughout an organisation and the led regeneration model. Contact IoD Scotland on 0131 557 5488 or results of the organisation, even under She is a member of the CBI Scotland iod.scotland@iod.com. Alternatively, see the pressure. The Positive Leadership strategy is Council, member of the First Ministers booking form included in this issue or book supported by international best practice in National Economic Forum, Board director online at www.iod.com/scotland or see www. leadership theory and application, business of Institute of Directors Scotland, and iodscotland.com and corporate finance strategy and the high- member of the Ministerial 20:20 Climate performance environment of elite sport. Change Delivery Group. Prior to Alliance Lessons from Optimal performance is achieved by aligning your business strategy with the Boots, Jane worked as the Scottish director of one of Europe’s largest public affairs the Six Nations values of Positive Leadership. A strategy consultancies, and as a marketing director Living leadership values, even under begins and ends with values - a prioritised for a major retail and commercial property pressure, to achieve desired results: listing of what is important to you. Once you developer. Jane is also a governor of know what you value as a leader, you can set Pitlochry Festival Theatre. Date: Tuesday, 28 September goals to help you bring about end results that Jane, who was educated abroad and in Time: 7am - 9am are aligned with your values. St. Andrews, has a keen interest in the arts. Venue: Apex Hotel, 27 Waterloo Place, This breakfast event will show you what She has four children and lives in East Edinburgh, EH1 3BH sets winners apart in business as well as in Lothian with her husband, Scottish Cost: £40 + VAT members; sport. contemporary artist, Christopher Wood £45 + VAT non members See page 26 for more on this. RSW. The Institute of Directors would like to invite you to attend a unique breakfast seminar facilitated by one of Scotland’s all-time rugby How to book: Book online greats... Values + Strategy = Results. This is Positive This event is being managed by Sandra Light and Gillian Rose of Cognito Events. To book Reserve your place at the Women into Leadership(TM). your place, email Gillian@cognito-events.com. the Boardroom conference, at Hear about how you can apply this simple Alternatively, please call 0141 639 0708 for but highly effective formula to help improve more information. www.iod.com/scotland or call 0131 557 5488 More events – turn over to p16 » » Page 15
  • EVENTS DIARY Institute of Directors Scotland: Autumn 2010 The wind of change in energy production Lunch with Steve Remp, Chairman, SeaEnergy PLC: Refocusing from oil and gas to offshore renewables Date: Thursday, 28 October Venue: Royal Northern University Club, 9 Albyn Place, Aberdeen Time: 12.15 pm - 2.00 pm Price: £25 + VAT Members, £30 + VAT Non members Under the executive chairmanship of experience of SeaEnergy will be of Steve Remp, Ramco Energy plc has great interest to members and relaunched itself as SeaEnergy PLC, guests. reflecting the board’s commitment to Steve Remp came to Scotland in exit oil and gas investments and 1971 and in 1977 he founded Ramco. focus purely on offshore renewables. Steve was educated in Europe and Through its 80 per cent subsidiary the US, obtaining a BA in Economics SeaEnergy Renewables Limited, from Claremont College in California SeaEnergy has interests in three UK and an MA in International Economics offshore wind farm sites, in joint from the School of Advanced ventures with major companies such International Studies, Johns Hopkins as SSE Renewables and EDPR. The University. group has also signed a heads of terms agreement to access offshore HOW TO BOOK wind farm projects in Taiwan. Given Contact Kathy Matthew at recent announcements about the KAMatthew@paull-williamsons.co.uk, enormous potential for marine call 01224 621 621 or at renewables, this insight into the www.iod.com /scotlandIncorporation of partnerships Is your business making the Innovation: Staying aheadand businesses - are you in? ‘knowledge connection’? of the curveDate: Wednesday, 13 October Date: Thursday, 21 October Date: Wednesday,17 NovemberTime: 8.15am to 9.30am Time: 6pm - 8.30pm Time: From 6pmVenue: Davidson Chalmers, 12 Hope Street, Venue: Inspace, 1 Crichton Street, Edinburgh Venue: The Apex Hotel on Waterloo Place Edinburgh EH2 4DB Cost: Free Cost: £35 + VAT members,Price: FREE event £40 + VAT non-members Partnerships with Scotland’s world-renownedWith the top rate of personal income tax set universities and research institutes can deliver In tough times like these, only companiesto rise to 50 per cent, more and more a range of business benefits, by driving new who are nimble, resourceful and above all,partnerships and sole traders are looking to innovations, impacting on the bottom line innovative, will survive and thrive.the merits of incorporating their business as a and helping to ensure Scottish companies are IOD Edinburgh has brought together alimited company. Professional firms in at the top of their game and staying ahead of panel who can offer practical examples andparticular have been quick to respond to the the competition in a global marketplace. experience of how their very differentthreat of higher taxes but there is no reason Interface - the knowledge connection for organisations have done this.why the owners of other trading businesses business will host a reception at The The keynote speaker will be Jack Perry,should not be asking themselves whether University of Edinburgh’s Inspace facility to former CEO of Scottish Enterprise. He will laythey too could benefit from incorporation. offer IoD members an insight into the down his blueprint for successful business This seminar will examine the tax savings possibilities open to them through and argue that innovation is not just aboutthat incorporation could bring, consider the partnerships with academia. new ideas, but thinking creatively aboutpro’s and con’s of limited companies and look This complimentary event is an opportunity everything you do.at the process for transferring your existing for guests to visit one of Edinburgh’s most Craig Stirling of law firm Davidsonbusiness over to a new limited company. unique event spaces. Chalmers, will talk about an innovative new Presenting this seminar will be Donald Representatives from Nairns, Scottish & venture between his firm and world-leadingForsyth, partner at accountancy firm Scott Southern Energy and Shed Media will deliver Canadian company Stonecracker, while JoeMoncrieff and Stuart Duncan/Craig Stirling, short presentations on their experiences of Lockwood will discuss an exciting link-uppartners at Davidson Chalmers, Commercial collaborative working, to be followed by between the IoD and Glasgow School of ArtLawyers. All three have vast experience networking over wine and canapés. that aims to bridge that often tricky gapdealing with owner-managed businesses on a between artistic innovation and the market.range of issues, including the incorporation So if you want to stay ahead of the curve –of business. and the competition – this is an event for you. The event will be chaired by David Lee, former senior assistant editor of The Scotsman, and IoD Edinburgh networking at the Apex the event will includes drinks, canapés and IoD Edinburgh holds an informal networking evening on the first Thursday plenty of opportunities to network. of every month at the Apex Hotel, Waterloo Place, Edinburgh. There’s a complimentary glass of wine for all attendees, and the chance to chat through the latest issues of the day, business or otherwise, with To book on any one or all of these three events... fellow IoD members. Contact IoD Scotland on 0131 557 5488 or The emphasis is on informality, and there’s no need to book. Just turn up iod.scotland@iod.com. Alternatively, see the booking form and enjoy! The evenings run from 6-8pm, and the next one is on October 7. included in this issue or book online at www.iod.com/scotlandPage 16
  • Institute of Directors Scotland: Autumn 2010 EVENTS DIARYIoD Scotland welcomes...tomorrow’s leadersThe IoD is looking to engage with the next generation Event: Tomorrow’s Leaders (full-day conference)of business leaders at an exciting new event: Venue: 29, Royal Exchange Sq, GlasgowThe IoD Scotland Tomorrow’s Leaders Conference... Date: Thursday, December 2 Time: 9.30am-6pm Price: Members £75 + VAT;WHAT should tomorrow’s leaders be doing their businesses and how they’re doing it. They Non-members £85 + VATright now? will help delegates focus on their personal and IoD Scotland is determined to find out - and professional goals for the future, and show howthat’s why we have organised our inaugural as a director, they should be driving theirTomorrow’s Leaders Conference on Tuesday, 2 business forward, championing strong and The event style is a radical departure fromDecember at 29, Exchange Square, Glasgow. effective leadership in all areas. traditional events. Delegates will be positioned The purpose of the conference is to engage The event is supported by Prince’s Scottish in small groups, and following eachwith the next generation of business leaders, Youth Business Trust. presentation, there will 10 minutes of highlyyoung partners and future partners on Speakers include IoD Scotland national focused discussion amongst the individualdeveloping an entrepreneurial and dynamic chairman, Raymond O’Hare and John Housego groups, creating questions to the speakers,culture individually and within their of WL Gore Ltd, and the event will be compered followed by a Q&A.organisation. by John Hatfield, a very well-respected We will be interspersing the day with several We are aiming to create a casual, non- journalist and newly appointed member of the good networking sessions, where delegates cantraditional and interactive environment at the IoD Glasgow committee. John, a journalist who talk more openly on a one to one basis withevent, encouraging our speakers to move has worked with the Financial Times, Scotsman, other guests and speakers.among the audience during their presentation Scotland on Sunday and Sunday Herald, is now a We’re hoping that this will deliver real resultsand to promote focused discussion afterwards. director of Second City Creative, the strategic for delegates, and attendance will refresh and We have secured a programme of communications consultancy. revive your passion for your business, and bringinspirational, dynamic and energetic speakers He will chair lively interactive discussions renewed vigour for success both personally andwho will provide an external perspective between the audience and the presenters, professionally, as well as providing excellentthrough their own experiences, talking about creating a stimulating flow of ideas. networking opportunities. Conference speakers:Fraser Doherty, Super Jam Mick Jackson, WildHeartsFraser Doherty, 21, set up SuperJam at the Mick Jackson is a serial entrepreneur, ventureage of 14, using his Grandmother’s secret philanthropist, author, ex-chart-topping rockjam recipes. After cooking jam at home for singer and international business speaker. He isseveral years, selling his produce at farmers’ also the founder of WildHearts, a charitymarkets and to delicatessens, he developed committed to launching companies that fighta method of producing jam entirely from poverty. Its first company, WildHearts Officefruit and fruit juice, making it healthier and Supplies, enables companies to fund projectsbetter tasting than regular jams. Fraser is in the developing world simply through theirnow supplying his products to over 1,000 stationery purchases. Its second, WildHeartssupermarkets in the UK (incl. Tesco, Asda Events is an inspirational sporting eventsWal-Mart, Morrisons, Waitrose) and is company that tackles obesity and unhealthyworking on expanding overseas. lifestyles.Mike Welch, Blackcircles Laura Gordon, Corporate ConnectionsMike Welch launched Blackcircles.com in Laura Gordon is the CEO of Corporate strong commitment to Glasgow and Scotland2001 with just half a month’s wages to call Connections International, an international and has recently been appointed as a Governoron after leaving his job as e-commerce business growth consultancy specialising in for Glasgow Caledonian University, sits on thedirector for Kwik-Fit. Since then, he has strategic alliances and collaborative networks. Council of CBI Scotland, is the Vice-Chair of thegrown the business to a turnover of A former award-winning corporate lawyer, Institute of Directors West of Scotland, and is a£15million, with more than 300,000 Laura has expertise in retail, food and drink, member of the Scottish North Americancustomers and national affiliations with real estate and technology sectors. Laura has a Business Council (SNABC).major motoring brands such as the RAC andUnipart. A true entrepreneur, Mike left school aged16 to work for a local tyre fitting company Want to know more?and soon after launched his first business For more information on this ground-breaking event, seewith just a £500 grant from the Prince’s Trust,a room in his parents’ house and a mobile www.iodscotland.com or call IoD Scotland on 0131 557 5488 orphone! Sandra Light, Cognito Events, on 0141 639 0708 (m. 07711 500283). Page 17
  • SPOTLIGHT ON ABERDEEN Institute of Directors Scotland: Autumn 2010 Can we afford not to invest in the UK’s energy future? Aberdeen’s crumbling and archaic infrastructure is threatening the city’s position as a global leader in the energy business. Ken McEwen says it’s time governments reflected the city’s importance and backed it with the investment it needsTHERE is a growing recognition that Andrew greater and more dramatic contrast to the Street – a viaduct up to 30 feet off the ground –Marr was spot on when he commented about almost off-hand treatment on this side of the was built to open up the new Granite City. It wasNorth Sea oil and gas in his BBC series, History of North Sea. Where we have a creaking transport a 19th century wonder and made the city aModern Britain that it was “as if an attempt was infrastructure, as long ago as 1992 Stavanger destination of international significance.made to airbrush this industry out of Britain’s opened the Rennfast, which cut about 30 There are many of us in Aberdeen whonational story”. minutes off journey times between efficient, believe the city needs to take a step-change of While the Treasury has been happy to rake in specialised oil industry bases and the city similar boldness. We need to look to a£13 billion a year (the equivalent of about 30 centre. revitalisation not only of our transport system,per cent of all UK corporation tax) from the oil I remember speaking to a Norwegian oil but also of our city centre. Not one that is basedand gas industry, the city that has hosted this industry managing director who was planning on anonymous concrete that could besubstantial boost for the UK economy has seen to invest in Aberdeen. “Your transport in anywhere from Southampton to Merseyside,little investment in its infrastructure. Aberdeen is a joke,” he told me, going on to but one that celebrates the city’s uniqueness Aberdeen is probably the only sizeable city in explain how one of his directors had missed his and heritage.the UK without a by-pass. When it can take an flight due solely to the nightly tailbacks at the At the moment Aberdeen is in thehour to get from a supplier on one side of the infamous Haudagain roundabout. In 2006, a international focus, from the global oil businesscity to a fabrication facility on the other, that is survey by IoD Aberdeen reckoned that delays at to the forthcoming influx of golf tourists fromhugely damaging to the competitiveness of all this bottleneck were costing the local economy the USA, Russia and China intent on playing atbusinesses – not just oil and gas. between £15 and £30 million each year. Donald Trump’s ‘best golf course in the world’. Yet, when Aberdeen’s plea was put to the Four years later it looks as though we will The refurbishment of Marischal College asScottish Executive in the early days of the have to wait another five years, or more, for Aberdeen City Council’s new headquarters isScottish Parliament, Sarah Boyack, the then action. part of that regeneration. So is the proposedTransport Minister basically said ‘if you want a This is a pivotal time for the oil and gas City Gardens which would provide a new civicby pass, build it yourselves’. industry and the emerging marine renewables space and linkage between the transport and Transport was one of the principal reasons sector. It’s estimated that there are up to 25 retail hub at Union Square with the city centre.that the oil and gas industry chose Aberdeen as billion barrels of oil still to be recovered from There are also great initiatives to bring backits base. Now Aberdeen is the world’s number the UK sector of the North Sea. But only a Aberdeen’s fading glory at The Green and thetwo upstream oil base, behind Houston in Texas. vibrant and competitive oil and gas sector will Merchant Quarter.That is something surely of considerable encourage the recovery of that oil. But during a time of financial constraint, cannational significance – a status worth Starved of investment, much of that oil could public spending really afford to support suchprotecting? remain under the seabed. The UK, which schemes? But the lack of central government otherwise could continue to receive 60 per cent Let me turn that around. At a pivotal time likeinvestment means that the industry is of its oil and 100 per cent of its domestic gas this, with the UK’s position as a global player incompeting globally – benefitting the UK’s from the North Sea by 2020, would have to rely energy technology in question and UK suppliesbalance of trade by £30 billion in the process – on potentially insecure and undoubtedly of oil, gas and future renewable energywhile the main host city has virtually the same expensive imported oil and gas. potentially dwindling, can we afford not toinfrastructure it had 40 years ago! It’s worth looking back into history to see invest in the UK’s world energy city? Look across the North Sea at Stavanger and how Aberdeen’s city fathers reacted to a similar • Former chairman of IoD Aberdeen, Kenthe difference is enough to make you want to challenge to its future. In the dying years of the McEwen has his own PR consultancyup-sticks and move to Norway. 18th century Aberdeen was being stifled by its business, Ken McEwen Public Relations The support that Europe’s other oil capital has topography. (see www.kenmcewen.com). You can followreceived from its Government could not be a With amazing foresight and boldness Union Ken on Twitter at http://twitter.com/KMPRPage 18
  • Institute of Directors Scotland: Autumn 2010 IOD SCOTLAND DIRECTOR OF THE YEAR AWARDS Nominate now: who’s your top director for 2010? WHO are Scotland’s top directors for with the national titles split into a wide You can also nominate online: please 2010? Who would you nominate from range of categories. go to www.iodscotland.com. The the private, public and voluntary sectors Awards are open to all Scottish closing date for nominations is for a prestigious IoD Scotland executive and non-executive directors, Friday, 10 December, 2010. Director of the Year award? whether IoD members or not. The Whatever the size of the company, national awards are decided by an The award winners themselves will be this is your chance to put forward independent judging panel after initial announced at a glittering gala dinner in nominations for those whose leadership expert assessment by Edinburgh Napier Glasgow on Friday, March 18, skills and abilities have served their University Business School, and the 2011. businesses or organisations well, regional awards are judged by the This event will bring together over 300 resulting in success even in these Institute’s branch committees. business leaders for an evening of turbulent and troubling times; those IoD Scotland is extremely proud of the celebration, offering an excellent whose brilliance contributed to their high standard of nominations we always opportunity to network with colleagues company’s success, which in turn has reveive for these awards, which we feel and client and forge new links. contributed to Scotland’s prosperity. We reflect the dynamic and bold vision of More details will be announced nearer want to reward those directors who Scotland’s business ventures the date but you can reserve your deserve to be acclaimed by their peers Award categories are given overleaf, tickets for the gala awards dinner now at the IoD Scotland Director of the Year along with the other information you by calling IoD Scotland on awards. need to nominate your director. 0131 557 5488 or by booking As in previous years, we are running Please take time to complete the through the IoD’s website at regional and national awards, form, detailing your nomination. www.iod.com/scotland Leading the way: Our Nominate now: see the form overleaf and fax it winners for 2009, pictured to 01896 850400 or go to www.iodscotland.com at the awards ceremony earlier this year and fill in the online nomination form »»» Page 19
  • IOD SCOTLAND DIRECTOR OF THE YEAR AWARDS Institute of Directors Scotland: Autumn 2010Nominate nowIoD Scotland Director of the Year Awards Please photocopy if you wish to avoid spoiling your copy of this magazineTO nominate a director, simply tick the relevant category and fill You can nominate for more than one category but you mustin the information requested below. Important: see the notes provide a separate cover sheet and written documentation forat the foot of the page. each submission. Nominees will be considered in all categories Each submission should be accompanied by written entered but will not be eligible to win more than one of theevidence of the nominee’s individual achievement which has national Director categories. Other details required forcontributed to the success of their organisation in 2010. nominations are given below the award categories.Director categories Regional Categories❑ Female Director ❑ Aberdeen & Grampian Region❑ Public Sector Director ❑ Edinburgh, Lothians & the Borders❑ Voluntary Sector Director* ❑ Fife & Central Scotland❑ Emerging Director* ❑ Glasgow & West of Scotland❑ Global Director* ❑ Highlands & the Islands❑ Director Award for Developing Young People* ❑ Tayside❑ Director Award for Enabling the Best Use of Skills*❑ Non-Executive Director The criteria for all awards can be found on www.iodscotland.com❑ IoD Scotland Director of the Year * Additional criteria apply to these awards. See the websiteThe Nominee The NominatorName ................................................................................... Name ...................................................................................Position/Title ......................................................................... Position/Title .........................................................................Organisation ......................................................................... Organisation .........................................................................Email .................................................................................... Email ....................................................................................Address ................................................................................ Address ............................................................................................................................................................................. .............................................................................................Postcode .............................................................................. Postcode ..............................................................................Telephone ............................................................................. Telephone .............................................................................Website ................................................................................ Website ................................................................................Description of services or products .............................................................................................................................................................................................................................................................................................................................................Year Company established........................................................................................................................................................Year Nominee joined the company..................................Number of Years at Director Level....................................................Turnover details: Please tick appropriate box or provide specific figure (if known)Year end <£1m £1-5m £6-20m £21-50m £51-100m >£100m Specific2007/8 ❑ ❑ ❑ ❑ ❑ ❑ £......2008/9 ❑ ❑ ❑ ❑ ❑ ❑ £......2009/10 ❑ ❑ ❑ ❑ ❑ ❑ £......Number of employees ❑ 1-10 ❑ 11-50 ❑ 51-200 ❑ Over 200Company’s major milestone in the past 12 months ........................................................................................................................................................................................................................................................................................................................Nominee’s major achievement in the last 12 months ......................................................................................................................................................................................................................................................................................................................See www.iodscotland.com for full details of the criteria against which each award will be judged.Please note: Each submission must be accompanied by written evidence showing the nominee’s achievements. Please remember that relevant facts,figures and examples, ie, growth in turnover or staff employed or exports, will score more highly with the judges than general statements. Whennominating, please provide an executive summary on the nominee which demonstrates the initiative, experience and drive which have contributed tothe success of the business/organisation (max 200 words).Please also provide a maximum of 100 words against each of the criteria listed here to further support your entry:• The performance of their company or organisation • Their achievements in personal and staff development and in• Their role in improving their company’s or organisation’s performance enabling staff to use their skills effectively• Their strategic leadership, including their vision and future planning • Their role and impact on the life of Scotland and its communities input as well as contribution to the corporate culture • Their contribution to the profession of directorship• Their contribution to robust corporate governanceFax entries to First City Events on 01896 850400 or post to IoD Scotland Director of the Year Awards,c/o 3 Peel Gardens, Clovenfords, Galashiels TD1 3LH; or nominate online at www.iodscotland.comAny queries? Call Gill Coltman on 07721 530115 or email awards@firstcityevents.co.ukPage 20
  • Institute of Directors Scotland: Autumn 2010 BUSINESS SUPPORT: ROYAL BANK OF SCOTLAND RBS launches online business review to help entrepreneurs take advantage of the opportunities ahead – http://support.rbs.co.uk “ We’ve listened to our customers and are pleased to offer this new support... “ Graham Galloway, Business & Commercial Banking ScotlandRBS providing new onlinesupport for SMEs as 1-in-3companies prepare for growthR ESEARCH by RBS has revealed recession – offering interactive business experienced relationship manager. encouraging signs as Britain looks to reviews, economic reports and practical The new SME Business Knowledge Hub can recover from the recession. Despite guides. be accessed via: http://support.rbs.co.ukdifficult trading conditions, 33 per cent of Graham Galloway, managing director, David Frost, director general of the BritishSMEs surveyed see growth as an immediate Business & Commercial Banking Scotland said: Chambers of Commerce (BCC), has signalledpriority for their company. “We’ve listened to our business customers and his support: “I have been really impressed with In response, RBS has launched a new one- are pleased to offer this new support to help the new support RBS are offering SMEs.stop-shop for support and advice online to them make the most of future opportunities. “It is one of the most comprehensive andhelp businesses trade their way out of the We also understand many businesses remain practical tools I have seen for a long time. At cautious: over half of those surveyed are the BCC we recognise the need for small looking for more economic stability before businesses to better equip themselves for a investing. Our online review helps these changing economic environment, and businesses avoid the pitfalls of a recession and anything that supports them in considering plan for the challenges ahead.” their options is a good thing.” The free interactive business review, a UK banking industry first, can be found on the RBS • The RBS Business Knowledge Hub also online SME Business Knowledge Hub. contain the free online guide, Helping Your Businesses can use the review to answer Business in 2010. The online business review is questions on topics such as cash flow and risk an additional tool for businesses to use at their to download an instant report. The report convenience. Our Relationship Mangers are provides guidance on how to plan ahead, with still on hand for customers in need of further the option of further advice from an advice and support. “ I have been really impressed with the new support RBS are offering SMEs. It is one of the most comprehensive and practical tools I have seen for a long time. David Frost, Director General, British Chambers of Commerce (left) Page 21
  • WORKING WITH THE THIRD SECTOR Institute of Directors Scotland: Autumn 2010We want your business:Modern social enterprises offer the private sectorplenty of ways of doing business Years ago social enterprises traded solely on the ‘ah bless’ factor – but not any more, says Karen Anderson (left), who works for Social Firms Scotland, supporting social enterprises in the mergers and acquisitions fieldTHIRD SECTOR and social enterprise? Whatrelevance and what opportunities for yourbusiness are encapsulated in these phrases? Before unpacking the definitions, here are someexamples of opportunities for doing business thatyou might not anticipate: • Social enterprises are keen to work with privatebusinesses under market-led conditions. The addedvalue to you is that you can generate extra corpor-ate social responsibility publicity by just doingbusiness as usual (£0 extra cost – £££ in extra PR). • Many private business owners are looking forexit options, while social enterprises are keen tobuy profitable SMEs and to maintain the brand and Focused on business:keep your employees (your options are no sale = no Workers for Unitychoice, as opposed to £££ for an exit) Enterprises, a Glasgow- • There are partnership opportunities with social based social enterprise,enterprises, too. Many procurement opportunities celebrate afternow include community benefit clauses and social successfully winning aenterprise partners are helping private businesses contract to supplyto win and deliver contracts. By introducing catering to workers oncommunity benefit clauses into your company’s Commonwealth Gamesbuying policies, you could demonstrate practical construction projectsadded value to your community; add an excitingnew dimension to your CSR policies; upskill and More specifically, social enterprises are receive positive CSR outcomes. Key to thismotivate your staff and increase your pool of businesses that trade in the market for a social opportunity is that doing business with a socialsuppliers while efficiently servicing your purpose. They have explicit social aims and enterprise must first make good business senseprocurement needs. meeting these aims motivates their commercial and, second, make good PR sense. • Social enterprises want to buy quality products activity. Profits are primarily reinvested to further Social enterprises are not looking to trade onand services from local businesses (more sales; their social aims and are not generally distributed the ‘ah bless’ factor by selling sub-standardmore revenue). to external shareholders. products. This is not sustainable and they are in • If you are looking for a challenge, then many This has a few key implications. Market-led business to make sure that they contribute tosocial enterprises would welcome new directors or business activity is core to delivering their social society in the future by creating sustainabletrustees, especially those with commercial mission; there are constraints on asset transfer; income streams. They are no different from anyexperience, strong networks and contacts. social impact is measurable; and a significant private sector company looking to ensure future • Further down the risk scale, you or your proportion of profits are re-invested in the markets by delivering quality products at a profit.organisation can invest in social enterprises either business. Perhaps some examples of social enterprises atthrough a loan or investment – an economic as Social enterprises understand that to deliver work in the business world will show thewell as a social return on your investment on their social mission, they need to deliver good opportunities that exists. These are just some of the options open to quality products and services to the market at abusinesses looking to work with social enterprises, profit. Sometimes, as in the case of social firms Social enterprises delivering with privateBut let us return to the definitions. (social enterprises which provide employment for businesses on community benefit clauses The phrase ‘Third Sector’ is understood to cover those severely disadvantaged in the labour In June 2010, Glasgow-based Unity Enterpriseeverything which is not private or public sector. market), the better the business is run, the better extended its operations by opening a newThis includes voluntary organisations, social the social impact. catering outlet for workers on site of the Nationalenterprises, social firms, development trusts, Social enterprises face similar challenges to Indoor Sports Arena and the Sir Chris Hoycharities and some co-operatives. As an SMEs and are commercially driven, creating a Velodrome in Glasgow’s East End, both of whichamalgamation of various organisations operating variety of opportunities for private businesses are being constructed as part of the 2014in a range of markets which are not for private and professionals. The simplest opportunity Commonwealth Games.profit, the edges are blurred. allows you to conduct business as usual but Unity Enterprise is a social enterprise whichPage 22
  • Institute of Directors Scotland: Autumn 2010 WORKING WITH THE THIRD SECTORprovides training, work experience and constraints but there are common themesemployment for young people and adults emerging across Scotland. These are: Want to know more?experiencing disabilities and other social • Local business owners often keepdisadvantages. businesses trading in order to maintain the IF YOU are looking for more information, a series The contract to provide the catering was employment opportunities in the region - of free events in various locations throughoutworth around £200K per annum and was similarly, social enterprises are community Scotland have been organised.secured thanks to the inclusion of focused and want to keep the jobs locally Go to www.acquiringbusiness4good.com/community benefit clauses in the contracts and try to create more job opportunities. sellingevents for the latest information andfor all major construction projects for the • Local business owners are finding it registration details.Commonwealth Games 2014. Unity is difficult to sell their businesses due a variety Hatches, Matches & Dispatches sessions acrossworking in partnership with Sir Robert of factors. Here social enterprises can take on the country are short evening receptions withMcAlpine. the business, and even consider joint various guest speakers, including Martin Stepek Credit for this goes to Glasgow City ownership models with management, (CEO of the Scottish Family BusinessCouncil, which took the bold step of employees and the exiting owners. Association), aiming at connecting private sectorensuring that community benefit clauses are • Local business owners would like to business people with social enterprise decisionincluded in all major projects related to the protect their legacy from trade sales which makers.Games. These clauses require contractors to result in a loss of brand and identity: social Getting ready to sell workshops are being heldemploy new entrant trainees and to link with enterprises want to own and invest in brands. to cover working with social enterprises butlocal regeneration agencies to engage local • There is a shortage of cash for selling more specifically preparing a business forpeople to access employment opportunities. businesses – but there a variety of methods valuation and sale to the Third Sector.Community benefit clauses also ensure that for structuring a deal, and sometimes social Other exit options are discussed in small,successful contractors are committed to enterprises can access different sources of interactive workshops with experiencedengaging with social enterprises and SMEs in finance. corporate finance professionals.delivering wider community benefits. Social Return on Investment (SROI) More events in 2011Local community organisation buying When a social enterprise buys a local The Institute of Directors, Social Firmslifeline business business they are also keen on predicting Scotland and MacRoberts are delivering a series Within the Acquiring Business 4 Good and measuring the social return on of workshops to open-up opportunities for theprogramme, Social Firms Scotland is investment generated. SROI is used to business community to work with socialsupporting various social enterprises to buy calculate the social impact of social enterprises.businesses that are key to the local economy. enterprises. It has become a useful tool These are planned for 2011 and will be run inThese include both family businesses with when private and public sector organisations venues across Scotland.multi-generational legacies and SMEs are engaging with the Third Sector. More information will be provided in futurecovering transport, communications, food More information on this can be found at magazines, but any questions please contactand retail ventures. http://www.sroiproject.org.uk but in essence Karen.anderson@socialfirms.org.uk This is a pilot programme and the deals it calculates the monetary value of any socialare currently under confidentiality benefits delivered. BUSINESS OWNERS: Considering Your Exit Options? Attend our FREE one day “Getting Ready to Sell” seminar on preparing to sell or exit your business, or for an evening’s quick introduction to the topic join us for the “Hatches, Matches & Dispatches” reception. Glasgow – 21st September Aberdeen – 28th September Edinburgh – 19th October Martin Stepek from the Scottish Family Business Association will be a keynote speaker at these events alongside various professional advisers. For more information and to register go to: www.acquiringbusiness4good.com/sellingevents or call 0131 225 4178
  • GOOD GOVERNANCE Institute of Directors Scotland: Autumn 2010Howard McKenzie asks whether a change in emphasis is needed to restore the reputation of Scotland’sLook out for thesales surgeas goodgovernancetakes overcompanystrategy E DITORS need dramatic news to sell and Scottish Widows. The sector is mainly and the Chartered Institute for Securities & newspapers, so the financial crisis focused in Edinburgh but is of significant size in Investment (CISI) enter the fray with their provided them with an open season Glasgow, and then there is Perth, Dunfermline unique Chartered Director programme and for cheap shots at the financial and all points in between where banks, building governance training. This provides the link services sector, and especially in Scotland, the societies and fund managers beaver away with between good governance and using that good home of the Royal Bank of Scotland and the our money. The trillions managed by the governance to build investor confidence and Bank of Scotland, the seemingly big sinners of investment and financial institutions are still drive sales. the financial meltdown. here, being managed. At the risk of drawing a At the CISI annual conference last year, But wait a moment: Scotland has experienced generalisation, these funds are our long-term Hector Sants, the FSA CEO said: “Non-executive outstanding growth in financial services, investments, our life insurance, endowments, directors will need to commit to raise their building on a distinguished history that dates annuities, investments and my pension! As technical skills in order to exercise rigorous back well over 300 years of prudent individuals we tend to have long-term oversight. Ultimately, they will need to management of long-term assets; indeed a 60 relationships with these institutions built on demonstrate competence with regard to risk per cent growth from 2000 to the recession. trust. management, regulation and the business Despite everything, the Scottish financial sector The financial crisis has dented the trust all model of the firm”. remains in good health but mustn’t become people have in financial institutions with whom The same is true of the executive director, complacent. Moving forward it needs to adapt they have invested not only their money but whose skills in investment management may to return to happy growth levels. also their belief and trust. So the financial sector well have won him or her a seat on the board. Financial services is a sector of immense must reinforce and rebuild the confidence of He or she may now need additional skills to importance to the Scottish economy. Even after the investor, the saver and the markets in deliver the governance that investors, clients the shake-out, it still employs over 90,000 Scotland (and elsewhere). and regulators require in the new financial people, 45,000 of whom are in Edinburgh alone. The way to do this is governance; clear, world that is emerging. Local economists estimate that about £7 billion precise, honest governance with spectacular The role of interim non-executives is also is generated by the financial sector and it attention to detail; first-rate governance AND expanding, those external advisors to boards to accounts for at least 1-in-10 of every job in crucially, being open, honest and ‘above board’, set policy, processes and procedures and then Scotland and probably twice that if you count pun intended! assist in the recruitment of a full non-executive indirect employment. Never has corporate governance, corporate director; they use only their skills as a Chartered Scotland remains a major international centre confidence and market share been so linked. In Director. Indeed, I knew little of the workings or for fund management, with £580bn in the next five years good governance will be the industry of many of the companies I have investment management, £720bn in general most effective marketing tool the financial assisted but they now have far more knowledge insurance, life insurance and pensions and sector in Scotland can use. In-your-face than they had thought they needed about £685bn in asset serving. That’s nearly £2 trillion, governance, maybe even the Nolan principles of governance and its links to sales and investor a figure of government-deficit-dwarfing public life, applied to private investment confidence – and I know a great deal more than proportions! companies and financial institutions make I expected about food production and logistics. Scotland is not only home to large banks but inexorable sense and could be used to drive Whether you are an executive, non-executive a host of financial institutions. The larger sales. or interim company director you MUST acquire examples are well known: Standard Life, Aviva This is where the Institute of Directors (IoD) the skills and knowledge to enable you to Page 24
  • Institute of Directors Scotland: Autumn 2010 IT MATTERSblighted finance industry Techs and balances perform at a high level. A plc or multi- Technology writer Bill Magee looks at two national would never dream of having a hi-tech options for companies looking to new director of finance, who was not a qualified accountant: the investors, some technology to drive their progress out of the of those very institutions based in current economic downturn Scotland, would run a mile. Likewise a bank would never be run by someone Hi-tech hammers to without any qualifications in banking... er... see what I mean? The new economy demands boards consisting of people with a wide range of backgrounds and skills who are qualified, experienced and knowledgeable in performing governance roles, regulating, break out of the slump managing risk, probing, questioning and seeking explanations for actions. I’VE COME across a brace of hi-tech solutions, correspondence in a single location, providing This is not a new concept. These same each proving vital towards kickstarting an overview through its registers, regardless processes have always been with us but organisations out of this current prolonged of where data is stored. now they are under scrutiny and impact and lingering economic downturn. As your ‘silent filing clerk’, even your directly onto the bottom line. Things will Digital IP and Sysnet are two Scots-based ‘disaster-proof correspondence archive’, you and do change; remember the whole idea tech firms with a UK and international reach, collaborate with your customers in a whole of employee involvement and motivation offering stand-out innovations to “blue chip” new way. Never again will there be any would have been totally alien to the companies and SMEs alike as well as the confusion over instructions given or received. manager in the 1930s and in the 19th public sector. See www.sysnet.co.uk for more details. century Robert Owen of New Lanark fame What they have in common is how each Meanwhile, in the telecom sector, Digital decided that a contented workforce was acts as an enabler, placing productivity, ROI IP has provided IT and telecoms solutions for more productive and so reduced the and bottom line boosting tech tools in the Stagecoach Group, Pizza Hut, Arnold Clark, working week from 84 hours to 72 hours. hands of clients – and delivering competitive James Watt College, North Lanarkshire This concept of continuity and change is advantages, too. Council, Criminal Injuries Compensation deeply engrained in our society and it is The first sits in the field of electronic Authority, Scottish Opera and Glasgow Royal the preservation of continuity and the correspondence Concert Hall. ability to change that will mark out one Sysnet’s major clients include British “It’s a testing time for everyone in business,” financial institution over another in the Airways, Sir Robert McAlpine, Laing O’Rourke, says managing director Keith Inch. “Every cost next ten years. Taylor Woodrow, Standard Life, Stagecoach and overhead is under review to get through Knowing what you are doing is the first Group, Nokia, Citigroup, and Glasgow these difficult trading conditions.” step in change, however. Working your Caledonian University, who collectively utilise His firm’s offering centres on ‘Unified way through the Certificate and Diploma a variety of its product portfolio. Communications’ (UC). By reviewing your in Company Direction is no easy option One is Sysdox, which is described as “an company’s telecoms you make significant but it will help you learn the true value of innovative electronic correspondence savings – often over 40 per cent – by moving strategy and governance from the tutors management system that works the way the to an ‘all inclusive’ lines, minutes, technology and those around you. client works” by its managing director, Peter and maintenance bundle. By working together to deliver these Burtwistle. Every day, increasing numbers of business high-level courses, the CISI and IoD will His team works with all the main tech people work in remote offices or distant ensure that the context and examples players including IBM, Oracle, Microsoft, locations: some HQ, others scattered around used provide ample opportunity for Anoto, Nokia and VisionObjects. the country or globe. gauging, practising and understanding McAlpine has trusted no other IT system for This makes telephony options ever more the strategy and practice of governance the past 12 years, with Sysdox utilised by a key. UC brings all applications – voice, data, and risk management. joint venture to build the AutoLink- video, fax, text, and instant messaging – into Eventually some candidates will go maintained M6 extension, and data available one unified business application, making staff forward to seek Chartered Director status, fully online to this day built into the contract. dramatically more productive and efficient. creating their portfolio and then moving Sysdox takes the stress out of procedures Benefits include reduced travel expenses, onto the most difficult part of the entire through a central automatic file and search telephony and audio conferencing charges, process; the peer review. This ensures that system of all correspondence sent-and- lower real estate and facility, messaging and you have the skills to contribute to any received. It’s ideal for professionals, project voice mail costs, and reduced cost of board, as executive, non-executive or teams and consultants – indeed, for anyone communications systems. interim director, it is a nerve-racking and where failure to be able to prove “who said Keith adds: “Also, a reduced environmental exacting experience but entirely what and when” costs time, money or has impact by unifying your communications both worthwhile. legal implications. from reductions in travel, but also less power There is a drawback. During the journey It works with any email client/mobile device consumption all round.” through the certificate, to Diploma and combining an easy-to-use internet browser- Digital IP works closely with all key industry Chartered Director, you become aware of based user interface, making it easier to keep players including Microsoft, BT, Cable and gaps in your own skills, poor governance your project team or colleagues informed Wireless, Mitel, Siemens and Avaya to create around you, the mistakes in governance without tedious manual filing. the exact bespoke solution for an you have been party too and things you Many organisations still manage their organisation, irrespective of size or needs, would or should have done differently. But customer and project participants’ corres- allowing it to plan for the future. this is exactly the reflective thinking pondence in the email inbox. “This puts them See www.digital-ip.com for more. required to instill confidence in at risk of losing information and makes it Any comments, billmagee@btconnect.com stakeholders, customers and investors. difficult to share information with colleagues • Howard McKenzie, a Fellow of the without endless duplication,” says Peter. • Bill Magee is Scottish Business IoD, is a Chartered Director, governance Sysdox allows storage of all your email Technology Writer of the Year consultant and conference speaker. Page 25
  • LEADERSHIP IN FOCUS Institute of Directors Scotland: Autumn 2010The current economic climate has put Scotland’s business leaders under the microscope like never before,with many commentators citing a business leadership deficit in the country. But, as Graham Watson,chief executive of Positive Leadership Ltd, suggests here, we don’t just need to improve the skill-sets of ourbusiness leaders – we need to alter their ethos completely if they are going to lead winning teamsLeadership is abouta commitment togetting the right resultsT HE business leadership deficit in survey against the S&P 500 shows the A leadership culture which is based Scotland has recently become an following: on the right set of values is critical to important topic of conversation, building a high commitment, high fuelled by the comments of some performance organisation. Values in thiskey influencers in the Scottish business % Change I Year 3 Years 5 Years 10 Years context are much wider than merelycommunity. Top 20 + 1.6 + 4.0 + 8.4 +3.0 shareholder value. Businesses which fail The chairman of Scottish Enterprise, S&P 500 - 37.0 - 8.4 - 2.2 - 1.4 to recognise that ‘serving the customer’Crawford Gillies, wrote earlier this year is the key job will probably implodethat: “The lack of leaders with high eventually. In contrast, those businessesaspirations, able to lead their organisation However, addressing the current which recognise that they exist to serveto reach their full potential, cuts across leadership shortcomings in Scotland is society, using all their strengths, willvirtually all of Scotland’s economic not simply a matter of more and/or prosper in the long run.challenges. It inhibits investment, better quality leadership training and As the chairman and CEO of Generalinnovation and enterprise. It is the thing development. Electric, Jeff Immelt said recently: “Theholding back many companies and our While a focus on skills alone is future belongs to leaders who want toeconomy from reaching their full important, it will not by itself translate win, without ever losing track of theirpotential.... The challenge facing many of into sustained high performance and values. We live in a day when the bestour companies is what I would describe as will most likely prove woefully people can work anywhere. They will“satisfactory under-performance.”’ inadequate in situations of extreme follow only authenticity – a person who(Sunday Herald, 3 January 2010) pressure, as evidenced by the recent leads with passion and purpose.” More recently, David Watt, the global economic effects of a widespread An organisation which understandsexecutive director of IoD Scotland, was failure of business leadership. that results are influenced by businessquoted as saying: “It’s basic – we must What is needed instead is an strategy, which itself is guided byimprove the standard of leadership across approach to standards of leadership leadership values, is one which is bothbusiness. There is no question that there which optimises both the performance authentic and capable of sustaining ahas been some pretty bad leadership in of leaders throughout an organisation ‘winning edge’, even in times of extremesome major businesses, where directors and the results of the organisation. pressure.(both executive and non-executive), Leadership development needs to be Making the transition to this highparticularly in the financial sector, were integrated into business strategy in the commitment, high performing culture,not doing their job properly. We want to same way that elite athletes are able to which is robust even in times of highsee that standard rise at all levels.” integrate preparation for high pressure, is not easy. It requires(The Business Herald, August 2010). performance with their own game plan strategic, operational, behavioural and Reversing a trend of poor leadership is for winning, in a manner which allows psychological alignment, tested throughan organisation-wide challenge and is them to deliver their best performance continuous learning and actualvital if Scottish business is to deliver when it really matters. experience.sustained high performance in an This can be achieved when business Nevertheless, the results areincreasingly competitive world. strategy is aligned with a set of worthwhile, in terms of ROI and Research shows that leadership exists leadership values. A business strategy improved business performance.throughout high-performing should begin and end with values – a Deliberately applied, the principles oforganisations and that it is critical to prioritised listing of what matters and is Positive Leadership will help businessesbusiness success. It has also been shown important to those leading the and leaders throughout the organisationthat extraordinary leaders create organisation and to the organisation as to not only cope with challenges butsignificantly more economic value for a whole. Once you know what you value also to innovate and flourish. Problemstheir organisations. as a leader, you can bring about end are seen as opportunities and For example, comparing the total results that are aligned with your values. performance is robust even in times ofreturn for those businesses rated the 20 So, in the Positive Leadership(TM) high pressure. The corrupting influenceBest US Companies for Leadership in the model: Values + Strategy = Desired of ‘powerlessness’, which often exists in2010 BusinessWeek.com/Hay Group Results blame cultures, is not allowed to seed.Page 26
  • Institute of Directors Scotland: Autumn 2010 LEADERSHIP IN FOCUS “Leadership development needs to be integrated into business strategy in the same way that elite athletes are able to integrate preparation for high performance with their own game plan for winning” Showing commitment to lead: (above) Team GB’s Olympic champion cycling pursuit teamInstead, great leaders build confidence Leadership purpose is at the heart of • Directing your focus to things thatin advance of victory by making the Positive Leadership model. It is a really matter and over which youeveryone in the team smarter. much more driven concept than can exert control. Among the most significant of the 21 ‘mission’. It provides the inspiration and Leadership exists throughout anvalues which underpin the Positive direction for your actions, even in rough organisation, albeit leaders at differentLeadership culture of high performance seas. Indeed, there is no reason to levels of the organisation will exhibit theare integrity, character, purpose and shoulder the difficult work of leadership values of Positive Leadership differently.mental toughness. if you do not have a compelling, higher As in any field, leadership ‘experts’ are Integrity and character are the purpose to serve. made, not born. Expertise is earned fromfoundations of an authentic Positive Identifying your higher (or orienting) years of experience, the acquisition ofLeadership culture. purpose – finding out what is so extensive knowledge and the deliberate Integrity is the ability to ‘walk your important to you that you would be practice of essential skills.talk’ in any and every situation. Who a willing to put yourself in peril – is a key Not everyone can become the topperson really is will ultimately determine element in the process of understanding performer in their field but everyoneif their brains, talents, competencies, yourself. When you understand your can increase their expertise and thusenergy, effort, deal-making abilities and orienting purpose, you can understand become better at what they do - evenopportunities will succeed. and make key decisions in that larger experts. Success is based on a regular Leaders who demonstrate integrity can: context and you can make the tough pattern of behaviour. Once you know• Create and maintain trust. decisions to subordinate other import- what this pattern is, repeat it. What sets• See and face reality. ant purposes to that orienting one. winners apart is not merely the mindset• Work in a way that delivers results. Mental toughness – “putting yourself and the practice but the constant• Embrace negative realities and solve on the line” – is a value more often evaluation of their performance andthem. thought of in the world of elite sport analysis of their success. ‘Think of• Cause growth. than business, but is crucial to the In the words of Henry Wadsworth• Achieve meaning in life. ‘winning edge’ which the Positive Longfellow: “The heights by great men yourself The hardest tests for business leaders Leadership approach provides. Indeed, reached and kept were not attained by as on thechallenge their character as much as sport is a powerful metaphor for sudden flight, but they while their threshold oftheir skills. Leaders grow by meeting business leadership. At the core of companions slept, were toiling upward unparalleledthese challenges. Character is crucial to success in sport and business is the in the night.” success.successful leadership over the long-term ability to continually raise performance High performance, even underand the hard task of building character to higher levels, especially under intense pressure, can be achieved by more A whole,never really ends. pressure. The vital factor that enables Scottish businesses. Extraordinary clear, glorious Among the key questions which leaders to thrive under pressure, rather leadership need not be the preserve of life lieschallenge the character of leaders are: than merely survive, is the development the few. before you.• How flexible is my moral code? and enhancement of mental toughness: • For more information on Positive Achieve!• Do I really care? • Staying in control under stress. Leadership Limited and to learn more• Can I resist the flow of success? • Strengthening your self-belief. about its approach to helping leaders Achieve!’• How well do I combine principles and • Channelling your motivation to excel under pressure, see Andrewpragmatism? work for you. www.positiveleadership.co.uk Carnegie Page 27
  • COMMITTEE SPOTLIGHT Institute of Directors Scotland: Autumn 2010Chairman looks to new role aschance to stimulate enterpriseSTEPHEN WESTWOOD, who has taken over thereins of the Fife branch, replacing ShonaMitchell, is a successful businessman andentrepreneur with an extensive track record ofdeveloping, growing and realising business IoD Scotland could not function without the support of itsvalue. network of branches which covers the country and brings a These achievements have been built on over local feel to the IoD’s membership offer. Each issue of30 years experience in bringing together people IoD Scotland will carry a profile on one of the committeeand money in a culture of enterprise to respondeffectively to growing market needs. These members who deliver this service on your doorstep,enterprises have ranged from some of the starting with the new chairman of the IoD’S Fifelargest established publicly-quoted companies branch, Stephen Westwoodto start-ups in emerging and expandingtechnologies. Most of his business career has been based inEngland, and it is only latterly that he has “I see that the opportunity to take on the role further events around renewables, carbonlocated to Scotland, now with his home in St of the chairman of the Fife branch is a way in capture and green energy, the importance ofAndrews. This change in location followed the which I can contribute to stimulate more tourism, golf and agriculture, and therole that he took on as chief executive of IDMoS business enterprise. ” continuing changes in education and trainingplc, a spin-out from the University of Dundee, At the heart of the branch’s work in the which are critical to deliver people with thehaving taken the business through its flotation coming months will be a new events skills and motivation to create economic wealth.in 2004. programme. At the same time we are also looking to arrange He has now successfully built a new business “We have already held a number of successful events which may not have such a specific focusbase here in Scotland and he is particularly events based around the theme of ‘Tomorrow’, but are of high interest, providing opportunitiesinvolved in the development of newer essentially looking at markets and trends in the to visit activities and meet with high-profileenterprises in the lifesciences, engineering and national and international market which can figures.renewables markets. offer the opportunities for future success. We “Recent events have included a visit to the He commented: “I find Scotland a great place intend to continue with this approach. warships at Rosyth and a presentation onto live, with a quality of life to be envied. I also “Over the past 12 months, we have arranged security and terrorism by the principal of Stsee that Scotland has a number of exceptional events focusing on the scale of opportunities Andrews.assets, both physical and intellectual, which can within the renewable energy market, the range “Details of this new events programme will bebe developed to create a greater level of of specialised engineering and manufacturing available shortly. As ever, our role is to supportbusiness enterprise and economic success. businesses within Fife, the provision of the needs and wishes of the membership, and “What I can offer is my expertise and education and training skills to support these we are always delighted to receive additionalexperience to assist with this, and I can also opportunities and businesses, and the ideas, comments and suggestions, as well asbring a separate perspective to help with some significance of agriculture to the local and welcoming anyone who may wish to help.“out of the box” thinking to develop innovatory Scottish economy. “I look forward to this role and I hope that Iapproaches and solutions to achieve success in “We are currently finalising the planning for can achieve the level of success as that achieveda highly competitive and dynamic world. the next series of events which will include by my predecessor, Shona Mitchell.”BT chief calls for national talent pool to boost skillbaseby Bill Magee streams. It’s a win-win situation.” encourage employers to change the way they Dick has created a Scotland-wide talent pool in operate.THE director of BT in Scotland says more needs BT, not only to identify the leaders of the future, These could include ‘light touch’ practicesto be done to unlock hidden skills in the Scottish but to make sure their skills are used beyond which make the case for change throughworkforce. individuals’ day jobs. It brings together information and advice, or public investment in Brendan Dick says a greater push on skills employees at all levels in the company, from specific policy initiatives. Employers’ networksacross Scottish industry could help increase senior managers to bright young graduates. could help businesses to share learning andproductivity and boost the economy. “A national talent pool bringing together our support each other. Dick, a member of Scotland’s Skills Utilisation brightest stars could be created to help steer “The Scottish Government’s commitment toLeadership Group, said: “Scotland has an Scotland through this challenging recovery develop policy and research into skills use in theexcellent record on skills qualifications yet often period and beyond,” he said. “The challenges we workplace should be given the full support of thethese are not put to full use in the workplace. face in the future need a new kind of leadership. Scottish business community,” he added. “A low growth economy is bad news for the There are natural leaders out there who fall “Targeting future leaders by creating afuture. We need to focus on productivity and through the cracks because they don’t have the national talent pool or a programme of skillsleadership to help businesses weather the down- opportunity or support to reach their potential. utilisation workshops could mean improvementsturn and grow our economy through skills. “A lot of it is about trusting and motivating in the way skills in businesses are managed.” “Employees have lots of abilities which may employees, and designing jobs to give people David Watt, executive director IoD Scotlandnot be directly related to their day-to-day role. more autonomy over their work.” was impressed: “It’s an interesting conceptEmployers could tap into this to motivate their Dick said policy changes may be required to and a way perhaps of catching tomorrow’speople, generate ideas and create new revenue lift barriers to a high-performance culture and leaders.”Page 28
  • Institute of Directors Scotland: Autumn 2010 VOLUNTARY SECTOR “ The Business on Board programme stands out because of its simplicity.... it’s a win, win, win situation, says BT Scotland’s Brendan Dick (right)It’s a win for all whenbusiness is on boardIN AN increasingly environmentally and on the board of a charity or simply donatingsocially aware market, where value for time. And it is driven by the skills, time commit-money is optimal, consumers are scrutinising ment and interests of the business leader.business like never before. A recent piece of With over 45,000 charities operating acrossresearch by the UK Small Business Scotland addressing a wide range of social,Consortium highlighted that: environmental and economic issues, the Tods Murray LLP and members of Moray “88 per cent of consumers said they were opportunities for getting involved on a board Chambers of Commerce. Staff from these more likely to buy from, or work with, a and being able to make a real difference in the organisations are now working with charities, company that supports and engages in operation of a charity are immense. Such providing a wide range of much-needed activities to improve society.” opportunities are not just beneficial to the expertise and skills. charity but also to the potential board member, Yet, the programme is not just about the Businesses are increasingly looking at the offering the chance to utilise skills and transfer of skills and knowledge from the privatetriple bottom line: how does what we do in experience within a difference environment, sector to the charitable sector. The scheme alsobusiness impact on people, the planet and perhaps gain board experience and to use provides great opportunities for those withprofit? As this trend has grown, business leaders effective leadership skills to make a genuine business acumen and talent who want anare increasingly searching for new and difference. opportunity to give back to society in ainnovative ways to get support to address these In many cases you may find that the productive and positive way.issues, and there are a plethora of programmes challenges faced by the charity are similar to As Brendan Dick, director of BT Scotland andthat bring together the business community those of your own organisation. Being able to a presenter at a recent Business on Boardand their charity counterparts to find ways of provide some insight in addressing them in a seminar notes: “It’s a win, win, win situation. It’s ameeting their challenges. new way or using different models can make a win situation for the charity: It provides access to However, the Business of Board Programme huge difference to the charity. And, as one skills... it’s a win situation for the individual: theystands out because of its unique selling point: programme participant put it “you won’t get get the opportunity for development from usingIt’s simplicity. It matches skilled business people this experience from any paid training course”. skills in a different context.and charities that need their skillset and share In the year since it began operating, Business “And it’s a win situation for BT, as it’s a good waytheir values. on Board has matched over 30 people with to engage and retain key staff at all levels of the Business on Board does what it says on the charities, working at board level or providing organisation and broadens experience.”tin. A free national brokerage service, Business training and mentoring. Organisations involved For further information about Business onon Board marries those with business skills who so far include BT Scotland, Cairn Energy PLC, Board, contact Shamin Akhtar on 0131 474 6154want to use them to help by becoming involved Leadership Factory, NHS Education for Scotland, or e-mail: businessonboard@scvo.org.uk. Supporting valued workers THE British Association of Supported public sector bodies. However, there are Employers (BASE) has produced a no barriers to prevent private sector brochure entitled Supported Businesses in companies from getting involved in a Scotland, with support from the Scottish similar fashion: indeed, the Scottish Government. This brochure provides a list Government is encouraging the private of Scotland-based organisations who are sector to link up with supported Supported Businesses along with businesses. information, guidance and links on how to A PDF of the brochure can be found on use Article 19 (Regulation 7) Reserved the Scottish Procurement Directorate web Contracts. site at www.scotland.gov.uk/Topics/ Article 19 (Regulation 7) describes the Government/Procurement, under the ability for public sector bodies to reserve heading Supported Businesses in contracts in the instance whereby there Scotland. may be supported businesses who could In addition, information can also be furnish their requirements. It is Scottish found on Public Contracts Scotland’s site, Government policy that every public body workers are disabled persons who by at www.publiccontractsscotland.gov.uk. should aim to have at least one contract reason of the nature or severity of their If you have any queries on how your with a supported factory or business. A disability are unable to take up work in the company could get involved with supported business or factory means a open labour market . supported businesses, contact service where more than 50 per cent of the In the main the intended audience are Jonathan Ross on 0131-244 0863. Page 29
  • TRANSPORT AND LOGISTICS Institute of Directors Scotland: Autumn 2010ARGOS CargoSystem bringstransport andlogistics sectorinto the21st CenturyCOMPANIES looking for the next generation oftransport and logistics operations now have thechance to embrace 21st century technologywith a new, state-of-the art online service fromARGOS Cargo Systems. After four-and-a-half years of developmentand studies and an investment of just over amillion euros, ARGOS will offer its new logisticsand haulage service from October 1 across theUK, Spain, France, Italy and Germany. Transport and logistics throughout Europe The ARGOS system has a filtering system end to empty return loads: full return loadswill never be the same again. which allows users to see the service quality should be possible as the system links hauliers ARGOS Cargo System is a market place of delivered by carriers, as well as the economic up to new clients and helps to reallylogistics and transport companies that allows health and solvency of the companies you will internationalise their business.businesses to contact carriers of proven quality be dealing with. At a stroke this gives you the ARGOS has had meetings with the variousthrough the internet. For the first time in the peace of mind that the companies entrusted Chambers of Commerce and transportlogistics and transport world it will be possible with your logistics will be able to deliver, and associations throughout the United Kingdom into contract a carrier with quality data via a eliminates companies that do not meet the the run-up to the system’s launch, and theymarketplace website. service standards required. have offered their support as they can see the The online system allows the user to track The ARGOS Cargo System is an essential tool huge advantages of this new system. Alreadytheir chosen carrier’s vehicles; arrange them in for all companies looking for quality logistics at ARGOS has signed up a number of companiesorder of their average grade of quality service; a fair price. It is estimated that by cutting out keen to make full use of this new, advantageousand be able to negotiate with suppliers without the logistics mediators who usually organise system.using the telephone – the complete use of such things for companies, you can see logistics ARGOS believes future clients of this systemonline technology. costs reduced by 10% - 40%. will be those companies concerned about the But how can you contract a transport Furthermore, the system will have a positive environment, those interested in making surecompany in a foreign company when you don’t influence on the environment as one of the they pay a fair price for their logistics andspeak the language? One of the biggest principal aims of the ARGOS Cargo System is to furthermore, incorporating the CIT technology.advantages of the ARGOS Cargo Systems avoid empty vehicle loads and incorporate the On the behalf of the transport associations, theymarketplace is that users contact, negotiate and IT technology that permits a continuation of have indicated that all of the companies operateclose transport operation contracts in their own tracking the time and resources. At the same with quality service.language direct with companies in other time, it will help companies looking to enter What makes ARGOS stand out is that anycountries thanks to a simultaneous translator on new markets for the first time as it will give transport company that publicises its servicesthe system into whichever language is required. them the logistics back-up they need at a fair via the system will be assessed on their service Transport companies can eliminate their price. quality.administrative tasks as the ARGOS Cargo System For the carriers who will be transporting the Having the evaluative system for theteam will sort it out automatically, easing your goods, this is a unique opportunity to increase transport companies in each country, the userworkload. their profitability by eliminating the middle- will be able to compare the information through As soon as order has been placed, the client men in the logistics industry who don’t add any the website from 1st October 2010.can follow the load’s progress online – which is value to the service. You can access the system now: seeparticularly useful if you need to make an In addition, making their vehicles available to www.argostrt.com for details on how to registerurgent decision over the load during transit. ARGOS Cargo System clients should ensure an your loads or vehicles. Register at www.argostrt.com on October 1 and offer a vehicle or cargo on the 4th or 5th, and receive a free contract with ARGOS until October 31Page 30
  • Institute of Directors Scotland: Autumn 2010 TRANSPORT AND LOGISTICS Respected European logistics expert gives green light to hi-tech system BEFORE ARGOS TRT began Positive support: Spanish MEP marketing this new service, they and Professor at Barcelona talked at length to Ramon Tremosa, University, Ramon Tremosa, member of the European believes the ARGOS Cargo System Parliament and a member of the will help drive Europe into a period Commission for Transportation. of economic growth Ramon is also a University Professor at Barcelona University and the author of several books about logistics. ARGOS has consulted him economic recuperation. about the effects of the utilisation It is clear to experts such as Mr of the service in the economies of Tremosa that ARGOS will improve the countries where the service is the quality service in the logistics being offered. and transport industries. According to Mr Tremosa, the Companies will be assured by the type of service ARGOS will deliver correct drafting of contractual will help the internationalisation of agreements on behalf of the the businesses involved thanks to transport companies, the increase the reduced costs in logistics and the companies to benefit that much more from in internationalisation that ARGOS guarantee of hiring the services of transport their operations. They will be able to increase will bring, and the use of the latest in IT companies which deliver real quality. their market and improve the quality of their technology and the improvements to the For Mr Tremosa, ARGOS will have a positive logistic operations. As Europe continues to environment. It would not be surprising if the effects in each country in which it operates: emerge from difficult economic conditions, European Commission became interested in cutting out the middle man enables ARGOS will be a real bonus in aiding this this service, added Ramon Tremosa. YOU DECIDE... you are either in or you stay in the 20th Century THE ARGOS CARGO SYSTEM GIVES YOU »» Online connection between companies and carriers »» Evaluation of the service quality and economic viability of both parties »» Significant cost savings on logistics operations »» Instant onscreen translation in whichever language is used by either party »» Latest CIT technology »» View companies’ quality standards before you contract them, ensuring only companies concerned with high-quality logistics are in ARGOS REGISTER... at www.argostrt.com on October 1 and offer a vehicle or cargo load on the 4th or 5th and receive a free contract with ARGOS until October 31. Telephone 0203 318 2586 Email: uk@argostrt.eu