Professional manager feb mar2012


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Professional manager feb mar2012

  1. 1. THE CHARTERED MANAGEMENT INSTITUTE MAGAZINE£4.50 / FREE TO MEMBERSFEBRUARY/MARCH 2012SILVER MONEYHow to save for youremployees’ retirementNEW ROMANCELearn to love your job again INSIDE EDGEHAPPY MONDAYS Risk analysisMatch your management at workstyle to the weekday RED ALERT Why Obama’s most tech-savvy strategist turned social media into business intelligence
  2. 2. AS GOOD AS OUR WORDEVER METJOE BLOGGS?The average person doesn’t exist. So why settle for genericinsurance? At Hiscox, we tailor our policies to the specificrisks you or your business may face.For information on professional indemnity and officeinsurance for members of the CMI, please contactTim Evans on 020 7929 3400 or Business Insurance are underwritten by Hiscox Underwriting Ltd on behalf of Hiscox Insurance Company Ltd, both of which are authorised and regulated by the Financial Services Authority.Bannerman Rendell are authorised and regulated by the Financial Services Authority. 9345 10/11
  3. 3. Professional Manager February/March 2012 Chartered Management NEWS & VIEWS Institute (CMI) Management House, Cottingham Road, Corby, 05 Briefing Northamptonshire NN17 1TT Risk is inherent to business. Make sure you manage it, t 01536 207307 says Christopher Kinsella e 06 Feedback The Secret Sta er on customer service and your letters 08 Agenda Acting Chief Executive Michael Skapinker brings you this month’s management essentials Christopher Kinsella 17 Personnel touch Director of Marketing Alison Blackhurst on how to handle extra bank holidays and Communications 18 Debate Simon Dolph Does social media hamper productivity? Editor Ben Walker 18 50 AOB Attempting to measure everything is futile, says Simon Caulkin Art Director Darren Endicott Senior Sub-editor Gemma Green FEATURES Editorial Assistant Rebecca Kearley 20 20 McAndrew meets… Edward Saatchi Account Director Sam Gallagher Publishing Director It worked for President Barack Obama. But will Edward Ian McAuliffe Saatchi’s social media revolution really transform UK management? ITN’s Daisy McAndrew logs in Advertise with us: 24 How to take a chance For all enquiries, contact The trick with risk is to understand it, says Ben Walker Michael Coulsey (t 020 8962 30 What a day for… 1261, e michael.coulsey@ Tailor your management tasks to the day of the week, says or Samantha Lyster Vicci Rule (t 020 8962 2942, 34 Life savers e Philip Smith dives into the new pensions duty Professional Manager CPD PLANNER © 2012. Published on behalf of CMI by Think, 38 37 PM profile The Pall Mall Deposit, Chartered Manager Karen Taplin of Williams Lea 124-128 Barlby Road, 38 Masterclass London W10 6BL Learn how to fall back in love with your job t 020 8962 3020 40 Ask the expertsCOVER PHOTO: CHARLES BEST, REPRO JAMES WOOTON e professional.manager@ Your questions on risk management answered 42 Fleeting thoughts Squeezing sta into small cars is a false economy, Member of the Audit says Peter Rodger Bureau of Circulations 44 Reviews and events 80,948 1 July 2010 to Our word on books and apps – plus key dates 30 June 2011 for your diary Printed on UPM Star matt. Produced at a factory that holds ISO14001, environmental management certificate. CMI is incorporated by Royal Charter and registered as a charity (No. 1091035). CMI does not necessarily agree with, nor guarantee the accuracy of, statements Contributors made by contributors or advertisers or accept responsibility for any statements which they may express in this publication. ISSN 0969-6695© Daisy McAndrew Samantha Lyster Philip Smith ITN’s special The former Times The business correspondent talks online editor writer for The Daily to Edward Saatchi looks at how each Telegraph highlights about his company weekday has its own the changes to NationalField p20 personality p30 pensions p42 _ 03
  4. 4. GET MORE FROM CMIChristopher Kinsella, acting chief executive, CMI As a CMI member, you have access to a comprehensiveOtto von Bismarck had it right. “A related websites”, they are taking a range of products andlittle caution,” said the large Prussian big risk, often without realising it. services, all designedstatesman, “outflanks a large cavalry.” We quote research that reveals more to help you on your pathHis words reveal a great truth: carefully than half of college students and to management successcalculate any risk before you take young professionals would refuse toit. Caution is as much of a virtue as join a company that blocked access to ON THE WEBcourage. You need a bit of both. social media, or simply find a way to With free checklists, e-learning This issue is themed on risk and circumnavigate those rules. The stakes modules, podcasts and an “askreward, and how those great tenets of are high in that risk equation: play Big the researcher” service atbusiness manifest themselves in the Brother on internet use and you might process of the modern send the elite of the next generation into managementresources, the latestworkplace. Our examination of how the arms of more liberal employers. thinking is just a click calculate odds, quantify stakes, and The lesson is that risk is found in theanticipate the moves of others (page 24) most unlikely places. CMI is aware of ON YOUR CVserves as a reminder that even everyday this. To combat it, we train our managers Enhance your professionalbusiness practice is fraught with risk. in sound risk management. But risk status with a CMI managementInnumeracy is apparently so rife among management is not designed to eliminate qualification, not to mention studyotherwise educated adults that one has to every possible pitfall. CMI accepts that tips when you need them the most.assume that many managers are creating risk is an intrinsic part of enterprise.strategy based on erroneous assessments Indeed, a properly implemented, IN YOUR INBOXof the risks at hand. Sometimes people comprehensive risk management Keeping on top of employmentunderplay risks. Yet – arguably more process can encourage an increased law changes and managementoften – they also overestimate them. appetite for risk – because problems updates has never been easier Take internet use and social media. have been identified and calculated. with our monthly e-newsletterOn page 18 we debate whether the Gains are maximised, downsides clipped. Membership Matters and e-alertsuse of social networking at work risks Bismarck was no coward, nor no dove. from our partners at BusinessHR.compromising productivity. CMI’s His record of declaring war on a raft ofown Adi Gaskell argues that it does European powers demonstrates that FOR THE JOURNEYnot. Indeed, he goes further, expressly he was willing to take risks, provided Make your next managementmaking the case that the use of Facebook, he deemed it to be the right strategy. move with confidence usingTwitter and similar products actually Many risks should be avoided, but, as our online continuing professionalincreases productivity by giving sta a Bismarck realised, you have to take development system and careerchance to rest their brain for short some of them. guidance resources.periods during their working day.Workers will either produce work Find out more about how CMI can help ON YOUR PHONEof su cient quality and quantity you manage risk at Want answers on the move?or they won’t. Take social media Then download our free CMI appaway and the unproductive ( will find some or contact our legal helpline forother distraction. up-to-the-minute advice from a Some managers qualified solicitor.will bridle at thisanalysis – and that’s IN THE COMMUNITYreasonable too: why Keep the conversation goingshould businesses “Risk is online – through our forums –pay their sta tomessage their friends? found or at one of our top regional networking events (see page 46). Yet, when in theorganisationsclose down access most NOT YET A MEMBER? Visit social media,personal email or the unlikely or call 01536 207307 to places” join today.nebulous “non-work _ 5
  5. 5. GET IN TOUCH Send your views to professional. or PM, Think, The Pall Mall Deposit, 124-128 Barlby Road, LondonYour chance to comment on management matters W10 6BL. Letters may be edited for length and clarityPRIZE LETTER of their loyalty (or disloyalty), so they get their issues and concernsDragon made o their chests and hopefully are rewarded or at least acknowledged.a friend of me A positive message is good forWell done, Deborah Meaden, business and a negative messagefor finally debunking the old has to be handled with respect.chestnut that the customer is LETTER That is just good business sense.king (Winter 2011/12, page 15). PRIZE Social media is transforming theIt’s a business mantra that is ready way that customers interact andto be replaced. The proof more opportunities are opening up Vivienne winsis mounting that customers buy for interaction with businesses. To two ticketsinto brands, products and services to Decanter some, customers are still kings, butand, as Meaden says, want to be Magazine’s for many the mantra has changedtreated as “respected friends”, Italian Fine Wine to reflect advancing technology, innot kings. Increasingly savvy Encounter at the way customers are interactingcustomers are posting both The Landmark with businesses and each other. Ipositive and negative messages Hotel, London am delighted by this.on Twitter, Facebook, LinkedIn on 19 May 2012. Vivienne Leach MBA,and company websites. These This event BSc, PGCE, MIOC, will showcasemessages provide valuable Dip Corporate Coaching some of thefeedback, and all businesses best wines fromshould be thanking customers for Italy. Guests will Labour of learningblogging and interacting. These sample more Baroness Prosser (Winter 2011/12,interactions reinforce the idea than 300 Italian page 19) questions the biasthat customers would rather be wines from the towards academia at the expense students for whom this was never arespected friends. Well, certainly finest vineyards. of vocational training, recognising realistic option. This is because welistened to, at the very least! Visit www. that the country needs people with have an education system basedFriends tell you when things are practical skills, and blames the on outputs, rather than outcomes; wine-events togoing well and when things are current government for slashing where we are more focused on find out more.not going so well. They also tell education spending by more than exam results than on learning.all their friends too, and this is a 13% and taking the education Let teachers teach and studentspowerful message. They expect to debate in the wrong direction. learn. Remove the bureaucracybe treated with respect because The truth is that successive of employing apprentices whom governments have developed only medium and large companies ridiculous performance measures can deal with. Let all businesses LATEST DISCUSSIONS ON that favour education instead employ and train these young PROFESSIONALMANAGER.CO.UK of learning – and I will explain people to use their strengths and the di erence. Education can be perhaps, in the future, we’ll find ● Part of the team ● Risk and ruin Adi Gaskell on giving Mike Petrook argues that measured by exam results to show it easier to find “tradespeople” employees something unfair dismissal rights academic achievement. Year-on- such as plumbers, electricians to belong to protect innovation year, more students achieve A and carpenters. If we do not take professionalmanager. professionalmanager. grades in GCSEs and A-levels, yet action now, don’t be surprised to the UK is seen as having a failing see society deteriorating. education system where numeracy Alan Wingrove ● Power from the people ● Role models and literacy are falling. This Is the government right Coco Chanel and Oprah paradox proves that our education You booze, you lose to consider reducing Winfrey are the heroines system has detached itself from Alison Blackhurst raises some workers’ rights at the of management expert smallest firms? Christina Ioannidis students’ learning. The idea of important issues in her column professionalmanager. professionalmanager. every student leaving compulsory on the potential headaches of education with five A to C grade o ce Christmas parties (Winter GCSEs has disengaged a swathe of 2011/12, page 43). She is right06 _ PROFESSIONAL MANAGER _ February/March 2012
  6. 6. Letters WHEN THE PRICE I once saw a Canadian stand-up IS RIGHT, THE comic describe the differences between his country and mine. CUSTOMER ISN’T He said that in Canada they had a Management and customer magical thing that simply does not service are expendable for exist in my country: customer service. companies that compete only Taking care of customers is a on price, says the Secret Staffer business imperative, right? It costs nothing and can really separate you from competitors, right? Managing employees to look after customerswhen she says: “Free flowing will result in more business if puntersbooze is, I’m afraid, probably feel they are being helped, right?a mistake.” Wrong, wrong and wrong. Today’s As an employment lawyer, I find lesson: the customer service myth –that the majority of employment SECRET don’t believe the hype.tribunal claims arising from STAFFER My company prides itself ono ce Christmas parties are customer service. It gives producta result of excessive alcohol training to staff and encourages themconsumption. Drinking too much to do whatever customers need. Our stated aim is to be theoften results in the lowering of, best customer service retailer in the country.or the abandonment of, social Someone should really tell the people who shop here.inhibitions and standards. Sexual I work for a large household name retailer. People neverharassment and violence are the tire of regaling me with their experiences at the store – I’d saymost common complaints on that I never tire of hearing them, but it would be an outrightclaims arising from o ce parties, lie – and I have never heard anyone talk positively about myoften as a result of inebriation. employer. Some people complain to me about the service they As Alison states, it is important got in a store hundreds of miles away, some say they refuse tothat managers restrict the amount go there (I bet they still do, though). One charming lady onceof alcohol available. Managers are told me she wanted to shoot all our employees in the face withalso advised to remind employees a nail gun. However, they never complain about our treat each other respectfully. Despite the rhetoric, service is crap here. The pay is low, the Bosses may want to think about staff don’t care, most don’t know much about their products,a specific policy on behaviour and those who do are moved from department to departmentat o ce parties. Currently, only so often the know-how they have accrued is wasted.around a third of employers have The training is impossible to fail, so our bored employeessuch a policy. The policy should lay race through it in futile pursuit of an adrenaline kick.out what is considered acceptable With poorly managed staff like that it would make sense ifbehaviour and what is not, but we were tanking. But we’re not. My company is huge. Cheap,should try to avoid straying into really huge and really, really profitable.“party pooper” territory. O ce We are the biggest retailer in our sector by far. When theparties are, after all, a celebration recession hit, the money we lost year-on-year would haveand a way for employers to show been enough to purchase another major retail chain – theappreciation for the work of their household name in its sector – outright. Like I said, huge.employees. Such a policy is a clear If consumers really cared about customer service, big-box,reminder of expected behaviours stack-it-high, sell-it-low retailers such as mine wouldn’tand helps if any subsequent action exist. We’d all be getting greeted by name by the butcher,is required. Find out more the baker and the candlestick-maker – and paying throughAdrian Hoggarth, head of The Secret the nose for it. My company pays lip service to customeremployment, Prolegal Staffer’s service because it makes it look like it’s trying, which is good company’s PR, but it’s never going to correct these ills until our crappy approach to management affects the bottom line. And that won’t happen customer until customers stop complaining and just stop buying. Or relations led someone shoots us all with a nail gun. to a race to the bottom on price – and service quality. Find tips on more enlightened approaches at cmicustomer The Secret Staffer _ 07
  7. 7. For the latest management news and views, visit from across the world of management Management minutes Financial Times associate editor and management specialist Michael Skapinker lists his regular round-up of the top 10 news items for managers1 3 Government to consult on protected Need for creative conversations industry skillsEmployers will be able to have According to a report by“protected conversations” the Confederation of Britishwith members of sta , Industry (CBI), the creativeallowing them to discuss sector is expected to employemployee performance 1.3 million people by 2013,without the fear of being potentially making it largersued for constructive than the financial servicesdismissal, if government sector. It is important to makeplans come to fruition. Prime sure these people have theMinister David Cameron right skills. “We must ensuresaid that the government that young people leavewould consult on a new set school with a strong graspof rules “so a boss and an of the basics. Solid mathsemployee feel able to sit downtogether and have a frank and science is particularlyconversation – at either’s vital,” said Susan Anderson,request”. Companies believe CBI’s director for educationprotected conversations are and skills.very important now that the 5government has scrapped without challenge but paying Disciplinary action if they had been recruited PHOTOGRAPHY: EVERETT COLLECTION/REX FEATURES, SHUTTERSTOCKthe default retirement age of them compensation. over social media directly. After 12 weeks in the65. But companies need to be While some companies same job, agency workers are 4careful that discussions do not Chief executives may encourage sta to use now entitled to the same basictrigger discrimination claims. urge employment social media such as Facebook, pay, overtime and bonuses of ex-o enders LinkedIn and Twitter for as directly recruited sta .2 Unfair dismissal Sir Richard Branson and work-related activities, 21% 7 rights to remain Marc Bolland, chief executive have taken disciplinary action Unions accuse on The government of Marks & Spencer, headed over inappropriate postings Swedish derogationhas decided against a more a group of corporate leaders about another individual, No sooner were theradical reform to employment calling on companies to according to a study by new agency workers’ ruleslaw, which would have ended employ former prisoners. law firm DLA Piper. introduced than trade unionsemployees’ rights to sue “It is a fact that 70% of accused some employers of 6for unfair dismissal. The people leaving prison Agency rules finding a way around them.suggestion came in a report re-o end within 12 change The Trades Union Congressby Adrian Beecroft, a donor months, but this figure The (TUC) passed a resolutionto the Tories. The Institute drops to 22% for ex- government has expressing concern overof Directors welcomed o enders in full-time improved the rights of companies using the “SwedishBeecroft’s proposal, saying jobs,” they said agency workers, derogation”, under whichit would have liked to see in a letter to putting them the agency, rather than thethe law changed to allow the Financial in the same company, acts as the employer,employers to dismiss sta Times. position as depriving workers of the new8_ PROFESSIONAL MANAGER _ February/March 2012
  8. 8. News rights. The TUC said it was considering a legal challenge to the practice. 8 Young recruits lack NINE TO FIVE workplace skills The shortage of young THE WHISKY GURU people with relevant skills With a brand that he started in his London kitchen, founder and head is a concern for 28 leading whisky maker of boutique blender Compass Box Whisky Co John Glaser companies and professional is challenging the conventions of a very traditional industry organisations interviewed by the FreshMinds consultancy 0515 I power through emails that on behalf of the Young have arrived overnight, before having Enterprise charity. Three breakfast with my two boys and quarters of the companies walking to work. It’s important to me surveyed thought the to walk to and from work. It’s a way to education system was not clear the head and think more deeply giving young people the about the issues of the day or week. skills needed to enter the 1000 My palate is best in the workforce. When asked to list morning, so this is when we do the problems, one company tastings or create prototype blends. said: “Commercial awareness, I might bring in samples of things written and spoken English, we’ve been working on, and it’s technical skills, interpersonal great when I taste them and skills, you name it.” think: “No one’s ever done anything like that; it’s a winner!” 9 Female directors These are eureka moments. make some progress 1200 There is a brainstorming One year since the meeting about the launch of a review by Lord Davies on limited-release whisky. The world female directors, progress of Scotch whisky is steeped in is slow but discernible. In tradition and we are regarded as October, government figures creative and innovative, because we revealed that women now try to remove the rules that people companies. It’s not as romantic make up 14.2% of FTSE 100 feel surround the use of Scotch as you’d think. directors, compared with whisky and make it more relevant 1700 I call our California sales 12.5% in 2010. Women account to modern times. brokers to discuss the launch of a for 8.9% of FTSE 250 directors 1300 I check my travel plans. new product there. It’s a process – up from 7.8% in 2010. The I spend a lot of time at events around that starts with me getting an idea number of all-male FTSE 100 the world where I can meet whisky and making the commercial case boards has fallen from 21 in lovers. Many of them really enjoy for it. The fun part is sourcing the 2010 to 14 now. what we do and that is rewarding, component whiskies and putting but it’s equally important to hear them together, and finally working 10 Directors’ what they wish we did and see with our package designers to come pay soars what competitors are doing. up with something that makes Directors’ 1500 Maintaining our relationship people go “Wow”. pay is not su ering despite with distillers is a big part of my 2200 I sometimes have a glass of the economic crisis. Total role. People think these are old guys whisky to end the day, but not often on earnings of FTSE 100 with big beards, doing things the weekdays, when I have to be up early. directors rose by an average same way they did 200 years ago. In Sadly, I’m not just drinking whisky 49% in the past financial reality, I’m mostly dealing with big all day; that would be some job! year, according to research by Incomes Data ServicesILLUSTRATION: QUINTON WINTER (IDS). The average company THE BOTTOM LINE director now earns SHORT, SHARP AND SMART SECRETS TO SUCCESS £2.7m per annum. Steve Tatton, editor of the IDS “I tell colleagues they can have five report, said: “Britain’s minutes now, or an hour later, and they economy may be struggling have developed the skill of presenting to return to pre-recession ideas very quickly. It has liberated me!” levels of output, but the same Tim Smit, chief executive and co-founder, cannot be said of FTSE 100 the Eden Project directors’ remuneration.” _ 9
  9. 9. Jump the for that plum management position Candidates with the right Qualifications on their CV are in pole position for the plum managerial jobs. Make sure that’s you, by gaining management and leadership Qualifications awarded by CMI. Study part-time or online, whichever suits you. For more information or to enrol for a CMI Qualification today, call 01536 207404 or email employer.
  10. 10. News Bring the big questions to your desktop with professional Visit our new Professional Manager website for web-exclusive articles and analysis of the current affairs that matter to UK managers. As well as an archive of the best articles from Professional Manager, Training joins features fresh content from leading writers examining management news and asking you for your views. tech revolution Visit professionalmanager. today – and sign up for our Twitter feed, @ProfManager – to keep This year is likely to see a digital the panellists were unanimous in abreast of the latest content revolution in training, according to saying that learning technologies are on the site. research. A report into e-learning by very much the norm now,” says the accredited accountancy body Acca document. “They did add, however, that SEARCH – your favourite reveals that the number of organisations these technologies would undoubtedly articles from the magazine delivering over 50% of their training via become more sophisticated and adept at at your fingertips, helping e-learning will more than double in 2012. meeting the needs of professionals and you become a better leader And, citing external research from organisations over the next 10 years.” and manager. the Chartered Institute of Personnel Report panellists scorned the idea that and Development, Acca states that 46% e-learning was an easy ride compared to DISCOVER – web-only of organisations will have more than a traditional training. “E-learning can be content, including exclusive quarter of their training online in 2012, incredibly demanding, because learners new sections such as My Hero up from 26% in 2011. are doing a lot of the learning and the and Whose Side Are You On? The Acca report forecasts that research themselves, which is incredibly e-learning will grow further. “When beneficial to deep understanding,” says DEBATE – get interactive! asked whether learning technologies Martin Taylor, chief executive of BPP Let us – and the world – would be the norm in 10 years’ time, Business Schools. know your views on leading managers’ styles, key management issues, THE REPORT MAKES FOUR KEY PRACTICAL and current trends. RECOMMENDATIONS FOR ORGANISATIONS WISHING TO JOIN THE E-LEARNING REVOLUTION: Remember that E-learning must Poorly designed Make it technology is only be integrated in software can feel familiar a means to an end wider training alienate employees “You need to think “The reality is,” programmes from e-learning about where people says BPP Business “When putting “You have to invest are in terms of Schools chief programmes time in producing technology and executive Martin together it is a quality product, social media,” Taylor, “if your important the otherwise nobody says reportILLUSTRATION: ISTOCK technology and individual will use it,” says consultee Laura your strategy perceives there Jim Robertson Overton, managing don’t fit together, will be additional from energy director at learning no learning value from online giant Shell, who technologies 1 programme is content,” says was one of the experts Towards The ranking of London in Cushman going to work.” Martin Taylor. report’s consultees. Maturity. & Wakefield’s European Cities Monitor 2011, a league of the top business cities _ 11
  11. 11. I wanted to qualify as a consultant Enhance your professionalism and credibility. After participating in our Consultancy Skills Course you can gain globally recognised qualifications. Consultancy Skills Course ...acquire and develop the skills you need to be a top consultant within your company This course provides a practical toolkit for both internal and external consultants. Helping you to operate effectively as a consultant. Duration: Five day course Dates: JAN 16 - 20 FEB 20 - 24 MAR 19 - 23“I was looking for a qualification to recognise APR 16 - 20 MAY 21 - 25 JUN 18 - 22and accredit my skills and experience, as Venue: London Gatwickwell as giving me extra credibility whilst Course price: £2,295+VATworking with senior managers within thebusiness. The Diploma was the perfectqualification, accredited by the Institute ofConsulting it has the right mix of self study Certificate in Management Consultingand supported learning via the workshops. EssentialsThe tutors are very knowledgeable and the ...involves a short self study assignment followinghelp and support you get to put together Consultancy Skills Courseyour Portfolio and prepare for the examsis phenomenal.” Diploma in Management ConsultancySue Muzolf, us for full programme detailsOrganisational Development Facilitator For further details please contact Carolyn: +44 (0)1293 568817
  12. 12. News Study success in the sunshine CMI continues to spread learning Students are pictured below and accreditation well beyond the with Gibraltar’s minister for shores of Great Britain. education and training, Clive77% of those polled by the British Just before Christmas, a raft of Beltran; and Maria AntoniaCouncil for Offices said that an students from Gibraltar qualified Brooks, principal of Gibraltarunattractive workplace would with diplomas in management at College, which deliveredmake them less proud to workfor an employer Level 3 and Level 5. the programme.100% of the top 100 UK companiesnow report on corporate responsibility,up from 91% in 2008. Source: KPMGInternational Survey of CorporateResponsibility Reporting 2011 Olympics boss headlines CMI dinner The Olympic Delivery Authority “It’s fantastic news to have a leading74% of European employees polled chairman John Armitt is to speak at the figure from the Olympics’ managementtrust their manager, while only 51%trust their organisation’s senior annual CMI President’s Dinner, where team speaking in 2012,” said CMIleader, according to BlessingWhite’s he will be this year’s guest of honour. companions manager Daniel Symonds.Employee Engagement Report 2011 The event is hosted by CMI President Tickets cost £99 and can be booked Terry Morgan , and is exclusively for through Miranda Goldstone on Companions. It will take place on 01536 207306. Alternatively email 22 February at 30 Pavilion Road miranda.goldstone@managers. in London. MANAGEMENT SPEAK Black-sky thinking been used in the financial so powerful that they 1. n, v. Considering or press to describe the can’t be contained by9.5 is the number of minutes it takes planning for the worst- bleakest of economic the Earth’s form an opinion of someone face- case scenario. Essentially forecasts. However, Let’s start the fight againstto-face, but an online photo prompts the evil twin of ‘blue-sky some see it di erently, doom and gloom here.a decision – good or bad – in just 5.5 thinking’, this phrase has using it to describe ideas Blast o !minutes. Source: Reputation 24/7 _ 13
  13. 13. Agenda POLICY WATCH Gone are the days where looking after human beings conflicted with making money. The way to be truly successful is to be ethical, says CMI policy and research director Petra WiltonThe only way is ethics his year is going to be will wear two faces: one looking Putting on a the best politicians and business T a struggle. Operating backwards and one looking leaders will be seeking to rebuild business face: will you be against a backdrop of forwards. They will have a strong looking both trust in business, which will mean European economic vision and sense of direction for ways this year? being ethical in all matters andinstability, rising energy prices and their organisation, knowing what’s putting people above profit.domestic austerity, with public happening in the marketplace and The government’s responsespending likely to be reined back anticipating what’s ahead. They to executive remuneration willeven further, many will be seeking to will reflect on the past year and be provide an indication of howprotect the delivery of core services inspired by their people to face the far politicians will be preparedand cutting back elsewhere. year ahead. to go down the regulatory By focusing on the core, will Looking back, they will see path. Alongside any regulatorywe finally see more organisations the fate of those who did not act approach, there will be anputting people at the centre of their ethically, such as News of the important role for professionalbusinesses? In our future forecast World (NOTW). The impact of standards, ethics and codes ofsurvey, which asked managers who unethical business behaviours conduct. Indeed, CMI welcomedthey would most like to shadow is that “trust in business has the recent comments of Lordfor a day, Sir Richard Branson clearly eroded and needs to be Heseltine, the Prime Minister’semerged as a clear favourite. In reconstructed,” according to growth adviser, that the UK shouldhis latest book, Screw Business as Andrew Witty, chief executive of have compulsory membership ofUsual, he claims that it is “time to GlaxoSmithKline, addressing trade bodies to raise standards.turn capitalism upside down and the High Pay Commission. At CMI, a key focus overswitch from a profit focus to caring Our headline writers had it the coming year will befor people, communities and the right when they screamed promoting the businessplanet”. However, he argues that “Without trust you are chip value of our own professionala focus on people should not be paper” on my fellow columnist standards and code of conduct,viewed as being at the expense of Simon Caulkin’s recent article as epitomised by our Chartereddelivering profits – as focusing on about the demise of the NOTW Managers. For those politicianspeople makes good business sense. (Professional Manager, and businesses looking to In any new year, the most September/October 2011, rebuild trust and stronge ective leaders adopt the visage page 50). With this in mind, values, it will be time toof the Roman god Janus – they using their forward-looking face, turn to the professions. Code put into practice outcome being a recommendation to the Board The CMI Code of Practice for Professional to expel the member concerned. Managers is a living document. CMI members CODE OF sign up to it, but that is not the end of the story. Board and Committee opportunities 2012 CONDUCT The onus is on members to exemplify the Code Two elected places are available on the in their everyday management activities. A Board for members with experience of complaint raised, whether by another member, operating at strategic level and with a profile a member of the public, a professional body or including previous executive and/or non- LIVING by the CMI itself, alleging a breach of the Code executive director experience. Closing date STANDARDS is thoroughly investigated. for applications is 31 May 2012. Specialist In the past 12 months, three complaints roles on the various committees include the CMI encourages have been submitted and investigated. Professional Standards Committee and the everyday ethics The complaints are administered by the Finance and Audit Committee. Professional Standards Committee, assisted by a group of CMI and IC members who form For more information on the Code and an investigation panel. In two of those cases, elections to the Board, contact Valerie Hamill, the investigators found no case to answer. Institute Secretary, on 020 7421 2707 The third case went to a full hearing, with the or PROFESSIONAL MANAGER _ February/March 2012
  14. 14. BR_adverts:250x87_final 5/6/11 14:45 Page 1 OPEN EXECUTIVE PROGRAMMES 2012 Download a Brochure PERFECT T. 01234 754351 PARTNERSHIP Please quote media code DEC100 Bannerman Rendell and Hiscox are here to look after your business I wanted to explore Members get discounted a bit outside my ‘box’ business insurance Call our professional advisors and meeting managers in the CMI/IC department on with radically different 020 7929 3400 or email experiences enabled for a quote me to do this. EDOARDO DI MACCO PROGRAMME MANAGER LEADER, GE OIL & GAS Edoardo attended Innovation Management Our open executive programmes are designed to encourage, to improve and to inspire. With one of the widest choices of management and leadership development programmes, we are sure we have a programme for you. Bannerman Rendell Insurance Brokers, Hiscox Underwriting Ltd and At Cranfield, our story is your success Hiscox Insurance Company Ltd are authorised and regulated by the Financial Services Authority. 8822 05/11 CranAd DEC100[250x87]aw.indd 1 Half Page Vertical.indd 1 01/12/2011 14:23 30/11/2011 11:23
  15. 15. Human resources THE PERSONNEL TOUCH The Queen’s Diamond Jubilee means employers face another extra UK bank holiday just 14 months after the last one. Kings of industry are best advised to embrace it – and plan for it, says Alison Blackhurst Royal appointment for Jubilee any businesses will be There are a few ways of payments apply for working on M grateful that diamonds aren’t forever. This managing this – either observe your normal holiday practices and bank/public holidays. The same applies for those employees who year will see another sign o the days on a first-come- have “x days including bank/ extra bank holiday – on Tuesday first-served or business-process public holidays” – typically this 5 June, for the Queen’s Diamond basis, or agree to accept more than applies to those in the retail, Jubilee – just over a year since the norm and plan to operate your customer service or healthcare the royal wedding triggered a organisation with a last-week-of- sectors, which operate while bonus break. Yet there are no December-style skeleton sta or o ces are closed. However, this is plans to make the extra day a shutdown. Whatever you decide, becoming increasingly common as permanent fixture. make sure you plan as soon as the method of calculating holiday Still, there remains this year’s possible. Set clear rules well in entitlements is often easier and jamboree to deal with. Extra advance as to how many sta will fairer to administer if you have bank holidays always prove be allowed to take 6-8 June o , part-time, job-share or fixed-term a conundrum for employers, on what basis you will authorise contracts and so forth. particularly when they drive requests, and reinforce that your That said, tread carefully if so far into a working week that absence policy applies for that you do ask sta to come in. With many sta are moved to take any FIND period, stressing that you will be most of the country o work and bridging days o to secure a long OUT asking for medical evidence from enjoying themselves, you may break. That is the case here: MORE… those who do miss work when they appear mean – and unpatriotic if sta take the three days o As a CMI member, are scheduled to be in. – should you fail to observe following 5 June, they will be you can access templates for a orded a nine-day holiday for the price of just three days from policies, forms, letters and “Tread carefully if you ask staff to their holiday entitlement. contracts from Business HR, plus come in. With many off work, you may So expect a rush for holiday requests for 6-8 June. a great monthly newsletter appear mean and unpatriotic” Of course, some employers the Jubilee. This could cause may be reluctant (or unable to resentment and productivity may a ord) to grant the extra holiday. slump. On balance, and in most Whether they are duty-bound cases, the best advice is to observe to allow it will depend on the the holiday. wording of the employees’ The only solace I can provide contracts. Broadly, there are to English and Welsh employers three types of holiday clause. is that they still have fewer The first states that an holidays than most of their peers. employee is entitled to “x days Scotland and Northern Ireland plus bank/public holidays”. In this already have more public and bank case, you would have to grant (and holidays than England and Wales, pay) the extra holiday. The second yet the additional bank holiday forILLUSTRATION: QUINTON WINTER says the employee is entitled to the Jubilee will still apply in the “x days plus the eight standard UK’s two northernmost nations. bank/public holidays”. In this case In 2012, Belgium has 10 bank you may require the employee holidays; Germany, Italy, Greece to work on 5 June and there is and Austria, 12. And France? Will your staff be no contractual entitlement to A whopping 13. So, as well as joining in with Diamond Jubilee an extra day’s paid holiday – but celebrating that diamonds aren’t street parties? remember to check your contracts forever, many bosses might also to see whether any supplementary remark: “vive la di érence.” _ 17
  16. 16. Does social mediahamper productivity?Facebook, Twitter, Google+, LinkedIn – mostof us now use at least one of them. But is socialmedia a threat to business productivity?Kayleigh Ziolo hears two opposing views than shoehorning vague guidelines YES into an existing policy that may be ignored by many anyway. We need to re-instil the ideaRONAN of “reasonable use” in companyKAVANAGH policy in accordance with theCEO SpamTitan technological changes of the pastTechnologies decade. Of course, we must trust our workforce, but the reality is that despite those conscientious employees who spend their timeThe use of social media in the working and producing e ectiveworkplace can hinder productivity. output for the company, a minorityTime spent on personal internet will, consciously or unconsciously,use is simply time not spent abuse their freedom online. I sayworking. Using company-provided unconsciously, because for anequipment for personal internet increasing number of people theuse on company time is not way they use social media is so 56% of the collegedissimilar to running up a massive ingrained in their daily habits they students and youngphone bill for the company – only simply don’t see it as problem. professionalsthe technologies are di erent. Another issue businesses are polled for Cisco’s Non-work-related social media starting to wake up to is security. Connected Worldactivity costs the average SME Education plays a part in this, Technology Reportwith 52 employees $65,000 per but social media contains many 2011 would not joinyear. No one wants a Big Brother holes that cyber-criminals will a company thatculture, yet the reason people don’t happily exploit. As a relatively new banned access tomake lots of long-distance calls on technology that is changing and social media orbusiness telephones isn’t moral, gathering pace all the time, there would find a way toit’s because they know there will be is plenty of user unfamiliarity to get around the rulesrecords leading back to them and exploit. This could have disastrousthey will face repercussions. consequences if viruses, trojans or Businesses that have employed other malware infect a company’sthe flexible measures SpamTitan network, particularly for smallerprovides have noted that simply businesses that will have lessintroducing ways to assess money to address these issues.patterns of social media use, and Keeping your company equipmentletting their sta know that their secure is vital, and implementing ILLUSTRATION: GARY NEILLemployers are able to do so, can restrictions is a small price to paylead to a significant change in web to prevent such occurrences.habits and employees’ approach Would we want to completelyto accessing social media at work. outlaw social media in theOn the basis of this analysis workplace? Of course not. However,managers can lay out a clear, it is vital to give businesses thecomprehensive and flexible policy tools to analyse and control thefor use in the workplace, rather problem as they see fit.18_ PROFESSIONAL MANAGER _ February/March 2012
  17. 17. Debate Social media in the workplace is NO about collaboration and increased productivity.ADI GASKELL That’s right, I saidMCMI, Content increased. Researchand Communities conducted by AT&TManager, CMI a couple of years ago supports this, as does a recent study by the University of Melbourne on productivity improvements. No one is 100% productive for a continuous 40-hourweekly period. Productivity for us all comes infits and starts. Allowing people to take brainbreaks when they need to is actually beneficial. Good employees will get the job done in thetime they need to. When we employ sta , weare e ectively telling them we think they areup to the job in hand. We enter a contract ofmutual trust – it is simply bad management tothen say “we’re going to make restrictions onhow you use your computer and keep tabs onyou”. That person is there to do a job, and it isdamaging to behave as if you assume they willnot do so unless watched. Banning does notwork. Oppression leads to rebellion, and peoplewill simply find a way to defy a rule they believepatronises them and makes them feel less freeas hard-working individuals. Security is a valid concern, but to ban socialmedia based on a fear of viruses or malicioussoftware is really just throwing the baby outwith the bathwater. Again, educating sta iskey, but so is trusting that they will have someknowledge in this area as users of social media.Generally they’re unlikely to trust or click onanything at work that they would avoid at home. Rather than see social media as a problemto be tackled, it should be embraced as partof the working culture. It is not the root of allevil – it is simply the tool through which deeperunderlying issues are revealed. If people inyour organisation are inadvertently sharingconfidential or damaging information relatedto the company, you have a problem witheducation, not with social media. Equally, ifpeople are sharing confidential or damaginginformation deliberately, to embarrass, then youhave a problem of employee engagement. It’sa very public view – the press often cite socialmedia as the cause of problems and unrest,rather than just another instrument people use. For more on social networking, turn to ourinterview with Edward Saatchi on page 20 _ 19
  18. 18. Edward MCANDREW MEETS… Saatchi The charismatic son of Maurice Saatchi thinks most businesses’ internal communications are dinosaur-ish and broken. Perhaps that’s why he’s pushing a Facebook for firms with evangelical zeal, says Daisy McAndrewIt’s not a face you’d forget – and it’s a story to fly back from the Obama campaign tojust as remarkable. Ridiculously young – but defend my philosophy thesis and then headlooking considerably older with his tangerine back to the States,” he says.beard and frizzy, floppy hair – Edward Saatchi And it was while working on that campaignis being touted as Britain’s answer to Mark that NF was born – under its original name,Zuckerberg. His communications company, The National Field Programme for the ObamaNationalField (NF), promises to take social Campaign. The need, says Saatchi, was clear:media into the world of business and change as the campaign grew, and with it the numberit as much as it has changed our private lives. of o ces and sta , the Obama campaign teamAnd, with a $1 million turnover in its first year, didn’t have a system for all the volunteers andSaatchi’s ambition looks right on course. “It’s workers to stay connected.becoming the Facebook for enterprise,” says “We were determined we’d be the first ‘real-Saatchi. “It’s got so much momentum behind time campaign’,” says Saatchi, “meaning we’dit – there’s no going back.” know every minute everything that was going As the son of the writer Josephine Hart and on – so we created NF.”advertising mogul Maurice Saatchi you’d have The “we” is his fellow NF foundersexpected Edward to stay in London and use Aharon Wasserman and Justin Lewis –his considerable contacts, but the 26-year-old both managers on the campaign – managinghas got to where he is today via an altogether 150 people each, many older than them.more convoluted route. They needed to know, immediately, the A self-confessed “Obama nut”, he went state of their campaign. Getting feedbackto the US in 2008 to help Barack Obama’s from door-to-door campaigning andpresidential campaign. It sounds glamorous, doing it via emails was ine cient: bybut exhausting. “I was doing a couple of the time the information reached HQmaster’s degrees in Paris and would have it was out of date.20_ PROFESSIONAL MANAGER _ February/March 2012
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  20. 20. At first, only the top trio used the new system – a sort of internal social network. But soon the whole campaign was using the system to communicate. And it formed part of what was credited as the first “new media” presidential campaign – a million people signed up for campaign text messages and 25% of Obama voters were linked to the campaign via social media. However, it was only when his former Obama colleagues moved on to jobs in other organisations – and complained bitterly about going back to using “There’s something about the social element that means people stay really friendly and it doesn’t get mean-spirited” emails and intranets to communicate with colleagues – that the three young men realised they had a business on their hands. “We patented what we had and got on with it,” says Saatchi. When I venture “What’s wrong with companies using the intranet?”, Saatchi looks aghast: “The intranet is dead, it was created in the 1990s, it’s not fit for purpose.” Oh, okay then. “Intranets are not remotely interactive and they don’t engender a feeling of community,” insists familiar with how Facebook works and will therefore Saatchi. “It’s just top-down information – there’s quickly get the hang of navigating NF. no sense that the people on the ground can give And, even for those few who don’t know how to use feedback. It’s not a management tool at all, it’s just a Facebook, “there’s a positive attitude and they want place to go and get basic information. I’ve never heard to learn,” he says. But, he adds, he hasn’t come across anybody say that their intranet is up to date.” anyone who doesn’t know how to use it at all yet. So, if it’s goodbye intranet, what can you expect Although there are already US firms who “do from NF? social” for companies, none, Saatchi believes, o er Well, it looks and feels just like Facebook, which is what his does. no coincidence – one of the founders of Facebook is So, like Facebook, there are streams of people on the board. The theory is that everybody is already telling each other stu . However, unlike the normal PHOTOGRAPHS: CHARLES BEST22_ PROFESSIONAL MANAGER _ February/March 2012