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Scotland

Autumn 2013 www.iodscotland.com

Published for members of the Institute of Directors in Scotland

‘Let’s tell the world what we do well’

Conference aims for the next level

IoD courses deliver boardroom skills How public is your social media? XP storm brewing for SMEs


Chairman’s welcome

Candour, common sense and enthusiasm: welcome to Scotland’s new body politic A new hope for Scotland – in the form of a dynamic and vibrant Civil Service? That’s not quite as strange an idea as it sounds, says IoD Scotland chairman Ian McKay

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unch with a friend. She is a young woman, now quite senior in the Civil Service, who is sounding quite un-Sir Humphrey. We are discussing how SMEs would benefit from more diverse and accessible routes to capital; and how the IoD and different layers of Government could work together to promote such new ideas. Did I mention she was also a graduate of the IoD prestigious Chartered Director programme? We agree to meet again later in the year and I spend the rest of the day lifted by her infectious enthusiasm. It is a sorry fact that we do not associate enthusiasm and new ideas with the Civil Service. It is not a very fair view either. The serious cuts in pay and numbers are already undermining a very important body of public servants and we really need to start giving credit where it is due. IoD recognised the merit of Sir John Elvidge, ex-Permanent Secretary in Scotland, at our Director of the Year Awards last year. John’s successor, Sir Peter Housden, has been no less enthusiastic a supporter of the IoD and making improvements in director and governance training. The proof of that support happens later this month with the first meeting of a new partnership to promote good governance in the third sector. IoD, Scottish Government, ACOSVO and SBC have put together a programme of development opportunities for leaders in the sector. It builds on our individual strengths and shares our expertise – corporate

governance training from IoD, mentoring from SBC, development training from ACOSVO – but the dynamic that has allowed it to happen has been the support from the Scottish Government and Sir Peter and his colleagues. Add in the sterling work of the Scottish Leadership Forum, principally in the public sector, and you start to see a pattern of bringing people together, getting things done, lifting our eyes to a better future. After my comments before the summer on the daftness of the proposed mega-expensive HS2 project, I was very glad to see a much better written and detailed filleting of the proposal by Scotland’s best economic commentator, Alf Young. More surprising was the recent intervention in the debate from former Chancellor (and significantly, former Transport Secretary) Alistair Darling. He attacked the HS2 high-speed rail project, warning that it “ran the risk of substantially draining the railways of money over the next 30 years”. He objected to a project which basically ruled out spending on many other major schemes, something I can heartily agree with every time I encounter Scotland’s woeful transport infrastructure. Help from Government to build on the good work of ScotRail and others and extend decent public transport and roads would be welcome indeed, and at much less cost. However, what I liked best about Alistair’s statement was his comment that political visions “can easily become nightmares” – a moment of welcome candour and clarity from someone who should know. Civil servants stimulating thinking and change. Politicians showing an open mind and being prepared to change their point of view. If Scotland could harness that attitude in our body politic all the time we would have a political culture to be proud of.

Contacts & details Executive Director: David Watt iod.scotland@iod.com Web www.iodscotland.com or www.iod.com/scotland

IoD Scotland is the official membership magazine of the Institute of Directors and is published on its behalf by: Chamber Media Services, 4 West Park Road, Bramhall, Stockport, Cheshire SK7 3JX.

Address IoD Scotland: 29 Abercromby Place, Edinburgh EH3 6QE

Advertising sales: Colin Regan t: 01925 468403 e: colinregan001@yahoo.co.uk

For email enquiries, iod.scotland@iod.com

Tel. 0131 557 5488 Fax. 0131 557 5818

Production: Rob Beswick t: 0161 426 7957 e: beswick@cssystems.net

Although every effort is made to ensure the accuracy of material contained within this magazine, neither IoD Scotland nor Chamber Media Services can accept any responsibility for omissions or inaccuracies in its editorial or advertising content. The views expressed in this publication are not necessarily those of the IoD. The carriage of advertisements or editorials in this publication does not constitute an endorsement of the products or services advertised.

Cover picture: The magnificent Gleneagles Hotel is waiting to host the IoD Scotland Annual Conference, November 1

IoD Scotland Autumn 2013 | 03


Executive director

Don’t be shy: it’s time to be proud of our achievements The countdown to the Commonwealth Games has begun... but will Scotland’s business community make the most of this once-in-a-lifetime opportunity to promote its achievements to a global audience, asks IoD executive director David C. Watt

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ow the countdown to the 2014 Glasgow Commonwealth Games has begun, Scottish businesses need to consider how they might exploit the opportunities events like this offer, both at home and abroad. For a country of only five million people, Scotland has a fantastic track record of staging high-profile sporting and cultural events, from the Ryder Cup to the range of arts festivals that take place the length and breadth of the country. However, the working relationship between events and tourism is not close enough and there is inadequate exploitation of the events industry by commercial businesses. For instance, why are we still importing mobile toilets and such basic services for these large-scale events when local companies could be taking advantage of the opportunities? Any innovation and creativity we might exploit in Scotland is often being stifled by too much red tape or smothered by the dead hand of the state. One wonders what benefit commercially we got out of the £500,000 spent on sending 22 public sector employees to the 2012 Ryder Cup in Illinois? Then take the Commonwealth Games themselves. Anyone with a keen eye on who is running the show will have noticed the distinct lack of Scottish natives involved. Ever since the Australians ran a successful Olympics in 2000 they’ve been telling everyone how to run a games, so why aren’t we doing it ourselves or at least looking south to those behind the spectacular London 2012 Olympics? Of course, the Glasgow games next year will see a sizeable influx of people from around the world which again offers unprecedented opportunities for Scottish businesses to engage with a global audience. We should be building a Scottish Business Club to exploit the opportunities at the time and build exports for the future but we are not. Surprisingly, exporting is not something at which

04 | IoD Scotland Autumn 2013

Scotland excels. For a country with a huge international heritage and reputation it is galling that of the 200,000 plus companies here, only around 4,000 of these are actively exporting: that’s around eight per cent. Companies need to think globally. A good example of this is the oil industry in Aberdeen. It has world-leading technology and expertise which, very sensibly, it is always looking to export around the globe. The Wood Group doesn’t make all its money out of the North Sea, and companies such as the Weir Group and Aggreko don’t rely entirely on the Scottish market. They are constantly developing initiatives to get into other countries and markets. Even the Scottish companies that do export can be conservative, sticking to tried and tested markets in Europe rather than looking further afield. Europe might be a big market but quite a few of the countries are currently experiencing huge financial difficulties. The real growth markets are elsewhere.

David Grevemberg, CEO of the 2014 Commonwealth Games. The Games represent a chance in a generation for Scotland’s businesses


Companies need to think globally. A good example of this is the oil industry in Aberdeen... it has world-leading technology and expertise which, very sensibly, it is exporting around the globe...”

I’m talking about the BRIC countries – Brazil, Russia, India and China – here, of course, although some people are already saying that if you’re not in the BRIC countries now, it is too late, and it’s time to seek out the ‘next BRICs’, with Indonesia and the Philippines among those being targeted as future major growth markets. Globalisation is certainly working the other way with companies coming over here and taking over our companies – Scottish Power, now owned by Spanish company Iberdrola, is a prime example. Scottish companies should be doing the same, taking over companies abroad and not missing out on opportunities. I don’t have all the answers, but when you consider that Scotland is the most global nation in the world – you’ll find Scots running companies in every corner of the globe – we should be making the most of our home-grown talent. In Scotland, we seem to be afraid of asking people to open doors for us. The Irish have no such compunction and have successfully exploited their diaspora while we are reluctant. Companies here should be tapping into the network of Global Scots. With the Games and the Ryder Cup as focal points, companies really do need to start thinking about how to make the most of these once in a life-time opportunities.

IoD Scotland Director of the Year Awards The IoD Scotland Director of the Year Awards celebrate their 10th anniversary in 2014 – and we have set the date for the awards ceremony. It will be held on Thursday, 27th March 2014 at the Crowne Plaza Hotel, Glasgow. Full nomination and attendance details will be available online shortly – but make a date now for what will be an extra special event. On the night we will celebrate not only the country’s finest business leaders but also the success of the awards themselves.

IoD Scotland Autumn 2013 | 05


IoD news

IoD Glasgow inspired by the man with a plan Laura Gordon offers an update on events with IoD Glasgow and West of Scotland It’s always a bit quieter over the summer months. People are away on holiday and while business for the most part seems to tick over as normal, business networking definitely takes a back seat. Many prefer to enjoy the long summer evenings at home with their families and it’s a good time to take stock and plan the next few months when things are a bit quieter. In Glasgow we kicked off the autumn season with one of our most motivational speakers. Derek Stewart, managing director of SAM Wealth, is an ultra-athlete who year upon year sets himself new and tougher physical

challenges while running two successful business, spending time with his young family and speaking at business events across the UK and beyond. At a breakfast event in August in the wonderful Gandolfi Fish, with over 30 business leaders, Derek regaled us with business lessons to be learned from his Marathon des Sables preparation and challenge back in April: five-and-a half marathons in six days in the Sahara Desert, in extreme heat of up to 52 degrees Centigrade. Unsurprisingly it’s known as the toughest road race in the world, but Derek completed it with aplomb – and at the same time raised £5,000 for Maggies’ Centres. The audience participated in a wide-ranging discussion on the business lessons to be taken from his experience: lessons such as goal

Fall in for a tasty lunch that supports the forces Soldiers’ Big Curry, Edinburgh, Thursday, 17 October 2013. Noon-3pm. Edinburgh has picked up a gauntlet thrown down by the Lord Mayor of London by organising its own ‘Big Curry’. The Lord Mayor’s Big Curry has become a hugely popular event in the London social calendar, raising money to support soldiers, veterans and their families. The Edinburgh event will mirror the London event, with a delicious curry, wine and beer on offer, as well as a chance to rub shoulders with “the great and the good”, meet up with friends or entertain clients. Military panache allied to the absence of a seating plan for lunch, which is served on long communal tables – Mess style, you could say! – works really well for groups and allows people to mingle freely. It’s a networking event with a twist! IoD Scotland executive director David C. Watt is an official ambassador for this event and it is one we hope many of our members will choose to support. Tickets (including group bookings) are £55 including lunch, wine, beer and water, and are now on sale at Big Curry tickets. Group bookings of up to 20 possible on website. For more info and to book, see https://bbnc.soldierscharity.org/edinburghbigcurry. Book early to avoid disappointment.

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setting, formulating a strategy, action planning, maintaining controls, strategy execution and reviewing and adjusting the strategy as required. It was crucial to understand, said Derek, that with the right mindset, the desire to achieve, a focused action plan and the right support team around you, anything is possible. A varied event programme is to follow, with ‘The Society of the Unusual’, an emerging leaders event in association with Hendricks Gin at Clydesdale Bank, at which we have creative entrepreneur Sarah Raffel of Brazen Studios as guest speaker, an Influencer’s Dinner with the Permanent Secretary Sir Peter Housden (see page 16) and, of course, our annual Christmas reception at 29 Glasgow on the 11th December. We look forward to seeing you and getting to know you better at some of these events.

Cars from Camargue

New and exclusive IoD Scotland member benefit From 1 October 2013 IoD Scotland members will be able to take advantage of exclusive members-only discount car deals for purchasing, leasing and financing vehicles from Camargue Group. The 40-year-old vehicle supply specialist already works with UK member organisations including the Institute of Chartered Accountants Scotland (ICAS). Members, their companies and their families will be entitled to preferred supply terms for new and pre-owned vehicles, from single purchases to fleet arrangements. Camargue’s offering is simple, effective and straightforward: market-leading terms negotiated with vehicle manufacturers and importers at the lowest prices possible backed up with unrivalled personal service. And since Camargue is entirely independent and not tied to any franchise, IoD members are free to choose from a huge range of makes and models without paying a premium. Specially negotiated Camargue member benefits include: n Discount in the supply price of the vehicles; n Discount in the finance rate - a panel of 12 finance companies attach superior terms to our affiliate introductions; n A wider range of flexible finance packages than normally available to the general public; n Expertise and advice on what to buy and how to finance it.

Want to know more?

For more information please call 0800 678 5911 or see the latest deals on offer via the IoD affiliate section of www.camarguegroup.com


Putting people back on track Venture Trust is the IoD’s chosen charity for the Annual Conference dinner on 1 November. Here we take a look at its work, objectives and achievements in helping previously marginalised people back into the heart of society Everything’s more positive, aye. My life’s changed for the better, I’m healthier, happier, thriving. I just qualified as a plumber and gas engineer in July at 32 year old. Left school with nothing but a bad reputation. I’ve got a career now, I can see a future. Venture Trust Participant 2012 Venture Trust supports those who are furthest from the job market. Participants are taken through an intensive ‘needs-led’ programme which enables them to appreciate their own abilities and potential, and arms them with the social skills to succeed in the workplace. In an engagement which could last for 18 months, our outreach staff mentor participants through to ‘positive destinations’ in employment, volunteering, training or education. Many of those who are referred to our personal development programmes are dealing with a multitude of issues in their lives – from a lack of qualifications and low levels of literacy, through to a history of abuse, homelessness and addiction. Some are already in the criminal justice system and many others are in danger of entering it. For many, a childhood defined by chronically low expectations has left them without self-belief and convinced that employment is an impossible goal. Our participants are supported to recognise the need for, and commit to making and sustaining, positive changes in their lives. Then, using carefully designed ‘experiential learning’ techniques in communities and on intensive wilderness expeditions, we enable them to develop the basic skills and behaviours necessary to succeed in the workplace. Beginning with core skills such as communicating effectively, building relationships, managing conflict, planning ahead and overcoming difficulties, participants begin to see wider horizons than they previously thought possible. Our work is proven to enable our participants to increase their confidence, motivation and employability, develop skills to support a more stable lifestyle, and form positive connections with peers, family, and community services. Last year, 240 participants secured opportunities in employment, education, training or voluntary work, including a number who progressed onto supported internships with Venture Trust and our corporate partners. Many more developed the core lifeskills necessary to support them toward their goals in the longer term, and to work toward stable, sustainable, and positive futures.

Want to know more?

To find out more about their work, or to make a donation, visit www.venturetrust.org.uk

“[Before Venture Trust] I was just sitting around, doing nothing. Now, I’m at the volunteer centre, going out, cutting grass, painting folk’s houses, for people with disabilities. I’d not thought about it before, but I just wanted to do something for the community. I love it, man. You cannae beat it. I feel better in myself; I’m getting up earlier, getting out, doing something with my time, instead of sitting about, lazing about, doing nothing. I don’t think I’d have gone down the volunteer centre if it wasn’t for Venture Trust.” Participant 2011

Financial advice with

The hidden threat to UK businesses by Stuart Moment, Chartered Financial Planner, Broadstone Would you consider driving without insurance? For most of us, it would be unthinkable. How about the risk of not insuring your business premises? Likewise, if you are an SME business owner, you have probably insured your company’s physical assets against everything from fire, theft and accidental damage to public liability. It may be staggering to know, then, that there is a major risk that many business owners are woefully unprepared for: the death or long-term illness of themselves or another key employee. In fact, recent research has found that 59% of limited companies have no key person protection cover* and an even higher 61% have no share protection cover*. So why is business protection cover so important? The issue is deeper than making sure a director can pay their bills should they fall ill; having the correct cover in place can ensure business continuity, prevent the loss of vital contracts and even stop your business from falling into the wrong hands should a key person be lost. Making the mistake of thinking you are young and healthy could be fatal; budding, start-up businesses are perhaps even more at risk of failing as a result of the ‘business protection gap’, estimated at £1.35 trillion*. Like insurance, there are different types of business protection available for different objectives, such as providing the

surviving business owners with the funds to purchase the deceased’s shares from their family, covering the cost of lost profits, paying for training for a replacement employee or settling outstanding business loans. Receiving expert, independent financial planning advice from a firm such as Broadstone can be a lifeline to your business. We are able to assist by: n Reviewing your business’s structure (including Memorandums and Articles of Association and Partnership Agreements) n Determining the most suitable type of business protection for your company n Structuring the protection to meet your business needs, helping to establish trust arrangements and appropriate option agreements n Calculating the correct level of cover n Researching the market to determine the most competitive provider So how likely are you to need to make a claim? Recent statistics from the Association of British Insurers show that in 2012, insurers paid out £6 million every day** as a result of death, serious illness or injury. It’s not all bad news though; as this coincides with recent data showing that survival rates have doubled for heart attacks in the last 40 years*** and improved for all of the 21 most common cancers****, the prospect of you surviving a serious illness are better than ever. But would your business survive? Sources: * Legal and General, Jan 2013, ** Association of British Insurers, 3 June 2013, *** British Heart Foundation, ****Office for National Statistics.

Want to know more? Stuart Moment, Private Client Partner - Head of Northern Region, is a Chartered Financial Planner for Broadstone. He can be contacted on 0121 265 7218 or 07581 023 268 E: stuart.moment@broadstoneltd.co.uk or see www.broadstoneltd.co.uk

IoD Scotland Autumn 2013 | 07


IoD Conference 2013

Take Scotland’s business to the next level IoD Scotland Conference 2013: November 1 • Gleneagles Hotel Date: Friday, 1 November Venue: Gleneagles Hotel Time: From 9am - 5pm Day delegate rate: £220 member (+ VAT); £250 non member )+VAT) Full Conference package includes Annual Dinner and overnight accommodation £395 member (+ VAT); £450 non member )+VAT)

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ovember 1, The Gleneagles Hotel: the day Scotland’s business community started on its journey to become ‘Better directors, better business and a better economy’. For that’s the date, venue and ambition of the IoD Scotland Conference 2013, our prestigious all-day conference that has set itself that lofty target as we look to give the country’s business leaders the information, knowledge and support they need to ensure Scotland becomes one of the world’s truly great places to do business. The targets might seem high but there is a real need for directors across Scotland to tackle the challenges facing their businesses as we enter a new world for commerce, where the challenges of globalisation, IT, of securing the right people for your business – and holding on to them – are becoming increasingly important. IoD Scotland is passionate about excellence in leadership and directorship and at this year’s conference you will hear from some of the most knowledgeable and successful business leaders, who will share their experience and vision for how directors can lead Scotland to a brighter economic future. We’ve pulled together a high-profile line-up of speakers to lead the debate throughout the day. Well-known

Conference supporters

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Jayne-Anne Gadhia, CEO, Virgin Money (see pg 11)

business figures such as Jayne-Anne Gadhia, CEO of Virgin Money, Sheila Fleet OBE, the renowned jewellery designer from the Orkney Islands, and the newly appointed principal and vice chancellor of Edinburgh Napier University, Professor Andrea Nolan, will deliver their own views on our conference themes, offering insights into how they’ve built their own careers and led their organisations to the top. And while we’ll have plenty of time for Q&A with the speakers, we’re keen to increase still further the interactive elements of this year’s event. So that’s why we’re adding a new dimension this year: we’re turning the tables and putting you in the spotlight to find out what you think about the key issues raised by the speakers. No, you’re not going to be asked to speak to the hall about your business, but we are going to hold an informal cross-table discussion session in which you’ll get the chance to add your thoughts to the day’s themes. Special keynote speakers will deliver short presentations on specific topics, before delegates are asked to take part in cross-table discussions on the issues, led by an IoD facilitator. It’s your opportunity to make your own contributions and hear first-hand how your peers have improved their performances as directors.

Important notice Have you booked for the conference over the summer? If you have already booked your place through the IoD Scotland website, please call 07721 530115 / 07711 432745, or email conference@ firstcityevents to re-confirm your requirements. Many thanks


‘A truly world-class venue..... a fitting host to the Conference...’

In addition, we have included a number of popular sessions from previous conferences that we’re sure you will find both interesting, thought-provoking and informative. We will showcase the value of formal director development, with presentations by directors who have benefitted from the IoD’s own suite of director development courses and qualifications, including Chartered Director accreditation. We are also delighted to announce that the conference will once again play host to BBC Radio Scotland’s popular current affairs show, Brian Taylor’s Big Debate, allowing you to take part in a live national radio debate on the key issues of the day with a panel of top politicians. We will be joined by young entrepreneurs from the Prince’s Trust Youth Business Scotland who will talk about their fledgling business careers and the support they have received from the charity. This is a full day conference, one that will both inform and inspire, delivering real benefits that can be taken into the workplace on the Monday after conference as you start on your new path to becoming a better director. The day package includes lunch, refreshments and plenty of opportunities for networking. Full Conference packages include one night’s bed and breakfast accommodation at the hotel, as well as attendance at the black tie IoD Scotland Annual Dinner where you’ll be able to continue networking with the day’s presenters. Our hosts, Gleneagles Hotel, will ensure the day is a landmark affair. This award-winning world-class venue has previously hosted the international G8 Summit and is regarded as a true five-star location, a fitting venue for an event of this magnitude.

Book now!

From £115 for the Annual Dinner only to the full conference day, evening dinner and overnight package at £395, this is a hugely competitive rate for IoD members to experience the very highest-level director training and networking opportunity available this year in Scotland. Even better, it’s being held in the Gleneagles Hotel, a world-class venue that’s previously played host to the G8 Summit and next year will host the Ryder Cup. The event is also open to non-members and full rates for all options can be found on page 15. Come along and interact with a core audience of around 150 delegates to share perspectives and discuss routes to Scotland’s future success. Book your place online at

www.iodscotland.com

or register your interest by emailing

conference@firstcityevents.co.uk and further information will follow.

Speakers’ profiles: See pg10 IoD Scotland Autumn 2013 | 09


IoD Scotland Conference 2013

Conference speakers:

From education to making the Games smile Our keynote speakers are drawn from a wide cross-section of Scottish business life, and are able to highlight personal examples from their own careers which will resonate with delegates. From education to high finance, the creative arts and construction, with the man who made the Olympic Games smile somewhere in between, they represent the highest echelons of Scotland’s business life, and all have a positive message to pass on to conference.

Donna Malone

Phil Sherwood

Professor Andrea Nolan

Global HR Director, Howden Group

Director, Purple and Red

Donna Malone is an award-winning global HR director with Howden Group. She has over 19 years’ experience in strategic change, project management, mergers and acquisitions and people development, including 10 years of board-level leadership experience in global organisations. Donna has been successful in leading HR during both business downturns and significant business growth in her career spanning manufacturing, outsourcing, IT and engineering companies. Since joining Howden in 2007 Donna has played a key role in enabling its growth, not only through her extensive M&A experience but also through ensuring that the organisation’s ’people infrastructure’ was robust enough to integrate, develop and recruit new employees in a business whose headcount increased by 10% then 7% in 2011 and 2012, respectively. Donna was a finalist in the IoD Scotland Director of the Year Awards and was named Female Director of the Year in March 2013.

Phil Sherwood led the Games Maker programme at the London 2012 Olympic & Paralympic Games and now runs his own consultancy business, Purple and Red. He was responsible for the largest recruitment and training campaign in UK peacetime; a diverse and inclusive workforce of 70,000 volunteers. Previously, Phil was a senior Army officer with 23 years of experience commanding on operations and developing policy at the highest levels of Government. He offers a unique insight into the leadership challenges in large-scale strategic programmes when under intense stakeholder, media and public scrutiny. He understands the critical role played by the people in any organisation from the top down. Phil will outline how directors need to provide a strong strategic narrative pointing the way in which their organisation is moving, and how good employee engagement will have a direct impact on the business’s bottom line.

Principal and Vice-Chancellor, Edinburgh Napier University

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Professor Andrea Nolan became the Principal and Vice-Chancellor of Edinburgh Napier University in July 2013. Andrea graduated as a veterinary surgeon from Trinity College Dublin and, after a short time in veterinary practice, embarked on an academic career. During the 1990s Andrea established herself as a research leader in the field of animal pain and has published extensively. Her leadership career began with her appointment as Head of Division of Veterinary Pharmacology in the University of Glasgow, and in 1999 she took up the post of Dean of the Faculty of Veterinary Medicine. Five years later she was appointed Vice Principal for Learning & Teaching in the University of Glasgow. In 2009 she was appointed Senior Vice-Principal & Deputy Vice Chancellor. She has also sat on committees including the Scottish Funding Council Strategic Funds Advisory Group and Scottish Science Advisory Committee.


Sheila Fleet (pictured right) Founder & Creative Director, Sheila Fleet Jewellery Sheila Fleet is one of Scotland’s leading designer-makers of gold, silver and platinum jewellery. She established her business in 1993, working from home, but now employs some 50 people across the business, based at her workshop in the Orkney Islands where all her jewellery is made. Sheila and her team of skilled craftspeople work in a dedicated studio, which looks out across the stunning land and seascapes that inspire so many of her designs. She graduated from Edinburgh College of Art in 1967 and when the company was founded she had already amassed 26 years’ experience as a designer and maker of jewellery in London, visiting Germany, Switzerland and Holland in the course of her work. Throughout this time Sheila won numerous awards. “Although the road has been long and hard to get to this point, I have enjoyed the steep learning curve required to run a business in my own way from a designer’s point of view.” Sheila takes very seriously her responsibilities as one of the biggest employers in the rural countryside of Orkney.

Jayne-Anne Gadhia (pictured on previous page) CEO, Virgin Money

Jayne-Anne joined Virgin Money in 2007 and, as CEO, is responsible for setting the strategy for the business in consultation with the Virgin Money Boards and Committees, leading the business in the delivery of strategy, achieving sales, and achievement of revenue and cost targets. Jayne-Anne started her career at Ernst & Young as a trainee chartered accountant. In 1987 she joined Norwich Union as a unit trust accountant and was thereafter promoted to head of unit trust marketing. She was then business and finance manager (direct sales), individually responsible for re-authorisation of Norwich Union regulated sales force following its high profile closure by the UK regulators. In 1994 she joined Virgin Direct as operations and compliance director and in 1998 was appointed managing director of the Virgin One Account, a JV with Royal Bank of Scotland (RBS). In 2001, RBS bought Virgin out of the partnership, with Jayne-Anne leading the integration of the Virgin One Account into the RBS Group. She then became managing director of mortgages across the RBS group before re-joining Virgin in her current role. Jayne-Anne is a Fellow of the Chartered Bankers Institute.

PLAYING MUSIC? MAKE SURE YOU’RE LICENSED. 77% of businesses say playing music in the workplace increases staff morale and creates a better working environment.* If you play music in your business, it is a legal requirement to obtain the correct music licences. In most instances, a licence is required from both PPL and PRS for Music. PPL and PRS for Music are two separate companies. PPL collects and distributes money for the use of recorded music on behalf of record companies and

performers. PRS for Music collects and distributes money for the use of the musical composition and lyrics on behalf of authors, songwriters, composers and publishers. A PPL licence can cost your business as little as 19p per day. For more information on how to obtain your PPL licence visit ppluk.com or call 020 7534 1070. To find out more about how music can work for your business visit musicworksforyou.com *MusicWorks survey of 1000 people, conducted May 2012.

ppluk.com IoD Scotland Autumn 2013 | 11


IoD courses

Developing the skills needed in the boardroom IoD masterclass series

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he IoD has produced a new series of four half-day masterclasses which aims to provide practical learning and focuses on the different behaviours and skills needed to be effective on boards. Of relevance to individuals who are currently directors and those about to be appointed within the private, public and Third Sectors, this series is for those serious about their professional development. The workshops can be taken independently and may be particularly relevant to those who have previously attended an IoD Scotland’s ‘Role of the Non-Executive Director (NXD)’ course or ‘Women on Board’ events.

Workshop content 1. The practicalities of being a NXD – A Day in the Life of... This masterclass is primarily aimed at preparing participants by learning from those who have done it. An experienced NXD will share their views on the role of the chair and provide practical hints and tips of what to do once you have joined a board – particularly in your first 90 days. Delegates will: n Learn from current board members about their real-life experiences, including governance, risk and decision making. n Know what to look for, what questions to ask; using real case studies to explore, discuss and learn n Gain answers to those vital ‘what would you do if...’ questions. 2. Developing a boardroom presence This masterclass focuses on thinking and behaving as a NXD. Topics covered include: n Confidence and communication in the boardroom. n Listening and checking assumptions. n Getting your point across and the power of persuasion and influence. n Switching from executive to non-executive. 3. Effective decision-making in the boardroom n Strategic thinking and challenging the ‘unconscious bias’ n Operating within a more diverse context and broader knowledge base. n Ability to clarify, analyse and summarise issues quickly. n Governance and managing risk. n The facilitation spectrum and how to influence in a board environment. 4. Raising your profile: Getting the right role This masterclass will enable participants to work on their CVs and potential application processes, either

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private, voluntary or public sector. It will also help you: n Preparing for interviews. n Reviewing networking activities and building key relationships with a particular emphasis on achieving greater and more targeted visibility n Using social media to build key connections n A personal PR strategy to boost your brand – what are you known for and how well are you known? Each half-day workshop (9am - 1pm) costs £150 + VAT for IoD members and £175 plus VAT, nonmembers. The complete series of four half-day workshops may be booked at the reduced rate of £500 + VAT for IoD members and £600 + VAT for non-members.

Grants available

Companies with fewer than 100 employees may be eligible for a 50 per cent grant via Skills Development Scotland’s Flexible Training Opportunities programme. Individuals may be eligible for Individual Learning Account funding. For details see www.skills developmentscotland.co.uk/ our-services/services-foremployers/training/flexibletraining-opportunities.aspx

Booking details: All workshops, 9am - 1pm The practicalities of being an NXD – A day in the life of Developing boardroom presence Effective decision-making in the boardroom Raising your profile - Getting the right role

November 6 November 13 December 4 December 11

• Cost for each workshop: £150 + VAT (members); £175 (non-members) Book all four for £500 + VAT (members); £600 + VAT (non-members) To book email director.scotland@iod.com or call 0131 557 5488 or see www.iodscotland.com


How do I secure an NXD role? Find out how at our special one-day course: Securing an NXD position in the public sector November 20 Full-day workshop @ IoD Scotland, Edinburgh

Have you ever considered using your skills in an non-executive director (NXD) position within the public sector? There are three main reasons why people seek an appointment as a public sector NXD: n a desire to contribute to the work of public bodies that have a significant impact on our daily lives n a recognition that these governance appointments are excellent ways to develop skills and experience as a non-executive director n the fact that the appointment could be a springboard to a broader, portfolio NXD career. These reasons aren’t mutually exclusive individuals may well have several reasons for seeking a public appointment. How should they go about it? The public sector landscape can appear cluttered and confusing. What’s the difference between regulated and unregulated ministerial appointments? Are all public appointments ministerial appointments? How many are there? What sort of public sector bodies appoint NXDs? Which positions are paid? How do you find out what’s available and navigate your way through the appointments process? To answer all these questions – and others you may have – IoD Scotland has developed a practical and informative workshop that will put you on your way to your first NXD position. This workshop will provide answers to these questions and more, and will give practical guidance on enhancing your application and interview performance. It will also shed light on the work of a public NXD, with input from the coalface! The course is aimed principally at executives

seeking appointment as a non-executive director; representatives from businesses seeking external development for executives through non-executive appointments and non-executive directors who wish to widen their portfolios The workshop will cover the range of public appointments available: n the role, responsibilities and challenges and opportunities of a public sector NXD n assessing your board readiness n where to look for suitable appointments n the variety of assessment tools and techniques used n how best to present yourself at application and thereafter n how to prepare for your first board meeting. A mix of input, discussion and practical examples and exercises will help reinforce the workshop messages and one-to-one advice after the workshop will be available when you find a position for which you would like to apply. What benefits can delegates expect? Participation may help you: n determine if a public sector NXD is for you n secure a public sector NXD position develop your board presence

Leading the way:

This workshop will be led by Karen Carlton. Karen was Scotland’s first Commissioner for Public Appointments, responsible for regulating ministerial appointments to Scotland’s public body boards. She was a founding NXD of a UK-wide public body, the Broadcast Equality and Training Regulator, and is now the chair of the Nominations and Remuneration Committee of the Royal Zoological Society of Scotland. She has extensive experience of Scotland’s public appointments process and runs a director development company, advising clients on board appointments and coaching individuals seeking an NXD role.

Booking details: Securing an NXD position Cost: £299 + VAT Venue: IoD Scotland, Royal Scots Club, Abercromby Place, Edinburgh Date: November 20 To book email director.scotland@iod.com or call 0131 557 5488 or see www.iodscotland.com

IoD Scotland Autumn 2013 | 13


IoD Scotland branch events

Referendum on the menu at the IoD’s ‘Influencer Dinners’ IoD Scotland Golf challenge Venue: Ladybank Golf Club, Annsmuir, Ladybank, Fife KY15 7RA Date: Thursday, 10 October Time: from 12 noon Price: Members: £60+ VAT Non Members: £60 + VAT IoD Scotland invites you to enjoy a day of golf at Ladybank Golf Club in Fife, to compete for our three trophies! The IoD golf challenges 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. All three will be played over the challenging Ladybank course in Fife – an Open qualifying course. First tee-off times are at 1pm with coffee and bacon rolls and practice range access to start the day at 12 noon, with a high tea at 5pm (approx) followed by the presentation of trophies and prizes. This is an excellent opportunity to network with fellow directors and IoD members while testing your golf against one of Scotland’s finest courses: a really challenging and exciting 18 holes lie in wait! BOOK NOW: Confirm your place at www.iodscotland.com/edinburgh/ 416-iod-scotland-golf-challenge-2013

“Ladybank has hosted seven Open qualifying events”

14 | IoD Scotland Autumn 2013

IoD Scotland’s ‘Influencer Dinners’ series is proving very popular, with previous events giving IoD members the chance to receive exclusive briefings on the major issues of the day from senior politicians and business leaders. These events are strictly members-only, with a strict limit on numbers so all attendees get real access to the guest speaker. All guests are seated around one table in a private room. The invited speaker will give a short speech on issues relevant to the business community, then take questions and join the general discussion – whether it’s politics, business, economic or social affairs – all under Chatham House Rules. Look out for more IoD Scotland Influencers’ Dinners over the coming months. For our next event we have invited Deputy First Minister Nicola Sturgeon to join us (see below).

Nicola Sturgeon Scotland’s Deputy First Minister Venue: Date: Time: Cost:

Hotel Missoni, Edinburgh 20 November 18:30 - 21:30 £58.33 (+ VAT)

This is your opportunity to engage with Nicola Sturgeon MSP on relevant business and constitutional matters. The MSP for Glasgow Southside constituency, Ms Sturgeon is Deputy First Minister (Government strategy and the Constitution) and Cabinet Secretary for Infrastructure, Investment and Cities. Born in Irvine in 1970, she joined the SNP at the age of 16 and has been campaigning for Scottish independence ever since. Before she became an MSP, Ms Sturgeon worked as a solicitor at Drumchapel Law Centre, helping people with legal problems. First elected as an MSP representing the city of Glasgow in 1999, she has been re-elected three times in Glasgow. Previously she was Cabinet Secretary for Health & Wellbeing.

More Influencer Dinners: see page 16

To reserve your places go to www.iod.com/ connecting/events/ or call 0131 557 5488


IoD Scotland branch events

Top economist and civil servant added to IoD’s ‘Influencer’ guest list Scotland Influencers Dinner with Graeme Leach Venue: Fairmont, St Andrews St Andrews Date: 3 October Time: 18:30 - 22:00 Cost: £50 + VAT (members only)

Scotland Influencers Dinner with Sir Peter Housden Venue: The Clyde Suite, Grand Central Hotel, Glasgow Date: 10 October 2013 Time: 18:00 - 21:30 Cost: £60 + VAT

TWO new dates have been added to the IoD’s ‘Influencer Dinners’ programme. On Thursday, 3 October, St Andrews will play host to IoD chief economist and director of policy, Graeme Leach. His responsibilities at the IoD include: n Global and UK economic outlook n All aspects of economic policy n UK competitiveness n The ethical case for capitalism In 2004 he was appointed visiting professor of economic policy at the University of Lincoln. Prior to joining the IoD, he was an economics director and managing editor of futures publications, at the Henley Centre. He has also acted as a consultant on future economic and social change, to many UK companies. Previously, Graeme has worked as economic adviser to the Scottish Provident investment group and as Chief UK Economist at the Henley Centre. Graeme is a

frequent media commentator and conference speaker, having spoken at events in 20 countries over recent years. On Thursday, 10 October, we will be joined by Scotland’s most senior civil servant, Sir Peter Housden. Appointed as Permanent Secretary to the Scottish Government in 2010, Sir Peter Housden is the principal policy adviser to the First Minister and Secretary to the Cabinet. As the senior Civil Servant in Scotland, Sir Peter leads more than 5,000 civil servants working for the Scottish Government. In an exclusive lecture, Sir Peter Housden will share with us his application of leadership skills and demonstrate how he has applied them to his career which has led to his current position as Scotland’s most senior civil servant. The dinner will be held at Grand Central Hotel, Glasgow.

Aberdeen branch

The appliance of science Date: Venue: Cost: Time:

Tuesday, 8 October James Hutton Institute, Aberdeen, Aberdeenshire AB15 8QH Members £25 + VAT; Non-members, £35 + VAT 12.15-14.15

Nigel Kerby, managing director of Mylnefield Research Services Ltd, will discuss the new UK Agricultural Technology Strategy, which was launched in August 2013. This event will be hosted by the James Hutton Institute. One of the many roles of the James Hutton Institute is wealth creation. The James Hutton Institute has two commercial subsidiaries that have many years experience in developing products in partnership with industry. Delegates will be given an insight into some of the products that are readily available in our supermarkets that have benefited from the appliance of James Hutton Institute science. A buffet lunch will be provided. See www.iod.com/connecting/events for more details and to book.

16 | IoD Scotland Autumn 2013

Events in brief Economy briefing over breakfast Date: Friday, 4 October On Friday, 4 October, the day after his attendance at our Influencer Dinner, IoD chief economist Graeme Leach will deliver a breakfast lecture. The IoD Economist Business Breakfast Lecture will take place at St Andrews. See www.iod.com/connecting/events for more details and to book.

Sir Tom Farmer lecture Date: Tuesday, 5 November The founder of Kwik Fit and renowned Scottish entrepreneur and philanthropist Sir Tom Farmer will deliver this year’s leadership lecture at the University of Edinburgh Business School. See www.iod.com/connecting/events for more details and to book.


Techs and Balances

Put information at your people’s fingertips

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cottish organisations face an ever-greater need to compete at a global level in today’s fragile economic recovery. This calls for intuitive and user-friendly Business Intelligence (BI) solutions giving you insight to make accurate and informed strategic decisions. Simply surviving is not enough. To thrive and grow, organisations need to be more innovative and agile, respond quickly and decisively to developing opportunities and challenges, and attract the necessary investment as you make progress in what are still extremely tough times. I’ve come across MicroStrategy, a company which provides just such BI solutions that let you find out exactly what you need to know, about not only your organisation but also your customers, without having to wait for the IT department to respond. And along with giving you insight they also help you improve your organisation’s productivity and effectiveness. The company’s Scotland Country Sales Leader Robert Skipworth tells me their solutions are extremely scalable. However much your organisation’s needs grow, they’ll seamlessly adapt, with a unified platform that also offers a lower total cost of ownership that lets you get more for your budget. The idea of being tied to the office nowadays is an outdated one and to outpace local and global competitors organisations need to equip staff with the resources they need to work effectively, in any location. Increasingly, employees expect to be able to bring their own devices into the workplace to help them work better. While this can have clear productivity benefits, the Bring Your Own Device (BYOD) trend creates security complexities, as it’s vital staff aren’t able to remove sensitive company or customer information.

by Bill Magee Scottish Business Technology Writer of the Year

This is where MicroStrategy scores: its mobile BI platform lets users access the same insight while on the move as they do in the office, so employees’ time is never wasted. This allows your staff to work efficiently wherever they are. They can be in another office or on the road and to have vital information at their fingertips for customer, partner or supplier meetings represents an advantage that speaks for itself! The MicroStrategy team works closely with third party mobile device management vendors, such as Good Technologies and AirWatch to make sure that an organisation’s data is protected within a separate ‘container’ on mobile devices, without affecting the way the solution works. This prevents data loss such as users photographing or copying information into personal applications. Another burgeoning area is Cloud computing services that can offer huge benefits to organisations wanting to be more flexible and responsive to change but do not want to make sizeable up-front investments in IT. Robert says this is particularly relevant in Scotland where there is a greater proportion of smaller businesses without access to large IT budgets. He adds that such Cloud services also let you take advantage of new technology to support your organisational objectives without the headache of acquiring and managing it while ensuring you have the right skills in-house.

Here MicroStrategy Cloud lets you realise all the benefits of BI without the outlay of valuable capital expenditure. It offers a simple and cost-effective way for your organisation to benefit from valuable analytics and data visualisation, letting you roll out applications faster and extend apps to mobile devices without having to move your data out of its current repository. The end product is a peace of mind. Butler Analytics describes MicroStrategy as an organisation that “delivers a highly configurable and quite uniquely functional BI environment.” Butler says that such a solution “should be on any BI shortlist” as it pretty well does everything when it comes to BI and analytics, adding: “Data visualisation and exploration compares well with best of breed; scorecards and dashboards are feature-rich and easy to use. “The reporting capability is extensive and, somewhat uniquely for a BI platform, MicroStrategy supports the implementation of data mining models... the BI Platform is described as enterprise-class, and indeed it is. The architecture is extensive and capable of meeting any need... offering various packages for different needs and size of an organisation.” Butler Analytics concludes: “It also has some useful free trials. It is very hard to fault MicroStrategy; they have been around a long time, but always seem to be one step ahead of much of the competition – worth a look.” See www.butleranalytics.com/2013/07/ microstrategy/ and www.microstrategy.co.uk for more details. Catch my Daily TechPost (most days!) on Twitter #billamagee and regular tech microblog at www.Kiltr.com/

IoD Scotland Autumn 2013 | 17


World forum on Natural Capital This November, Edinburgh will host a global conference devoted to turning the fastemerging debate about ‘natural capital accounting’ into action. World-class speakers, panel guests and delegates will explore and discuss how our natural capital assets should be managed in order to achieve sustainable economic development. Simon Milne, (pictured right) chief executive of the Scottish Wildlife Trust, explains why this is pertinent to members of the IoD... Question: Why are business leaders, economists, politicians and ecologists gathering in Edinburgh in November? Answer: To make the essential link between economic prosperity and protecting our ‘natural capital’.

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he notion that the Earth has an infinite stock of natural resources is the stuff of fantasy. It is clear that the protection and management of our natural capital – the assets that support our businesses as well as our very existence – is essential for economic development and future well-being. It has been estimated by Trucost that global revenue from agriculture is less than the cost of environmental damage of that sector. Meanwhile, in 2011, Concord Pacific Ltd were made to pay up to $97million for environmental damage caused by illegal logging, and Uniliver was the subject of a campaign by Greenpeace for buying palm oil linked to the destruction of rainforest. Closer to home, our bee populations are in decline; a KPMG report estimated that the loss of the pollination services from bees in Britain would cost the UK economy £1.8 billion per year. So, whether you are a farmer reliant on natural pollination, a furniture manufacturer consuming timber, a whisky distiller seeking sufficient supplies of clean water, or a maker of toiletries in the fast-moving goods sector, you will be exposed to the risks of increasing constraints on natural resources. You may also be financially exposed to the impact of changes in our natural environment, such as climate change, pollution and a decline in genetic diversity for future medicines or food. Ensuring that business planning is aligned with the sustainable use of these resources could be critical to securing supplies and providing a competitive advantage. This business planning must assess the use of our natural capital, reflect it in financial accounts and provide for the protection of the capital. According to Rachel Kyte of the World Bank (with reference to the economic crisis), “this is the time to review our approach to natural capital so that it becomes a capital asset rather than a free or invisible resource”. With a growing global population and increasing consumption of our natural resources, society and governments cannot be expected to meet all the costs of trying to sustain ‘invisible resources’; we should be ensuring that ‘externalised costs’ are ‘internalised’. Indeed, it is likely that governments will regulate to persuade businesses to account for their use of, and impact on, ecosystem services. Shareholders will increasingly be looking to boardrooms to ensure that risk assessments consider natural capital, and that mitigation is in

18 | IoD Scotland Autumn 2013

place to prevent a reduction in corporate value. Once we have started to account for natural capital, the aim must be to use this information to increase efficiency, safeguard reputation and improve environmental accountability. Perhaps most importantly in financial terms, the objective is to improve long-term business viability, through mitigating the risks of an interruption in supplies and higher costs of raw materials, or helping to secure finance for activities with high impacts on natural capital. It could also act as a driver for new products and processes. The benefits will be felt by society as well as shareholders as we start to reduce rather than increase environmental degradation. Natural capital accountancy is in its infancy and business will require guidance. A growing number of accountants are grappling with methodologies and debating how best to report on the economic impacts of natural capital on profit and loss accounts. According to KPMG, “the challenge for the accountancy profession will be to determine when the loss of natural capital will require an enhanced understanding and approach to business risk assessments and corporate disclosures”. At Rio + 20, the United Nations’ Conference on Sustainable Development, 57 countries and 86 private companies called for the value of natural assets to be factored into business decision-making and countries’ systems of national accounting. The World Forum on Natural Capital will build on the Rio + 20 commitment and provide the opportunity to explore the risks and opportunities for business, allow access to the latest developments and provide an opportunity to help shape the debate on natural capital with other business leaders, policymakers and prominent experts in the field. Ultimately, nature is priceless, but it is not valueless. The urgent challenge facing us in the next decade is to more fully understand this value, not only the intrinsic value but also the critical services nature provides to our economy and society.

Pic Credit: Fraser Band

Book your places now at www.natural capitalforum.com


What is ‘natural capital’? Natural capital is the stock of capital derived from natural resources such as biological diversity and ecosystems, in addition to geological resources such as fossil fuels and mineral deposits. It provides the ecosystem products and services that underpin our economy and provide inputs or indirect benefits to business (KPMG) Main picture: Margaret Holland

Nature really is the bee’s knees

“I believe that business has both a fundamental responsibility to be good stewards of our natural environment and the delivery focus needed to make the changes required to achieve that stewardship. What we need is a common language to account for business’s use of and enhancement of - natural capital”

Ian Marchant, former CEO Scottish & Southern Energy and winner of the IoD Scotland’s Chairman’s Award in 2013

IoD Scotland Autumn 2013 | 19


Techs and Balances

An XP storm is brewing for SMEs

Microsoft will end its support for Windows XP in April of next year - but many SMEs have still not taken the steps they need to migrate their systems over to Windows 8, says Bill Magee

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mbitious firms seeking to gain a commercial edge over the competition have a unique opportunity to simultaneously become a modern, mobile business in one swift move. How? By migrating from the soon-to-be defunct Windows XP system to Windows 8 Pro and the new Office offering. The XP version ceases next April and this may seem a long way off. It’s not. Next Spring, Microsoft ceases all support to its Windows XP system when, crucially, there will be no security patches or updates. Without such critical updates your data may become vulnerable and risks of business disruption increase. So, it’s the wise organisation that links-up with a Microsoft partner-company NOW to put plans in place to equip itself with as up-to-date digital communications and a broad range of devices, apps and services available. This includes enhanced security features such as built-in firewall, anti-virus, rootkit malware protection and Rights Management for email and attachments. It’s no surprise that increasing numbers of organisations are showing a growing enthusiasm over what the quick turnaround Windows XP migration program for Windows 8/8.1 Windows 8 experience can offer, in a timely, planned manner. However, while most large enterprises have either completed their migration to Windows 7, or are on the path to migrate to Windows 7 or 8, almost 30 per cent of small to medium-sized

20 | IoD Scotland Autumn 2013

enterprises (SMEs) still have portions – or all of – their company still running Windows XP. Microsoft Cloud Champion IA Cubed’s technical director Daniel Baird says: “Nobody likes change, it is easy to fall back on what is comfortable but as of April 8 next Microsoft will end support for the decade-old XP and Office 2003. “This means you will no longer receive updates, including security updates, or support from Microsoft, including many of your external software, such as certain accountancy packages.” The software giant is extending its program called “Get to Modern” aimed primarily at SMEs users who, typically, do not plan two-three years ahead for major migrations. Microsoft’s partner community has been given a release of Windows 8.1 Preview with even more robust tools and features, to build on and sell to their customers. In essence, it offers a broad range of business enhancements in terms of user experience plus improvements in manageability, security, mobility and networking. Collectively this provides customers with the best business tablets and great PC choices across all device form factors. Such a momentum for Windows 8 as Windows XP

end-of-support looms has not gone unnoticed. There is genuine market excitement about a new joint Windows XP migration campaign between Microsoft and HP to help customers migrate off Windows XP to a modern Windows experience. This tightly integrated partnership of dual support sees HP’s technology portfolio spanning printing, personal computing, software, services and IT infrastructure to help in the customers’ transition. We’re talking about the partner-to-customer offer of business desktops, notebooks and all-in-ones optimised for Windows 7 and Windows 8 together with setting up resources, training tools and professional guides to make migrations easier. So, whether you’re business plans to adopt Windows 8 devices to... • Make your operations more mobile with tablet form factors; • Develop modern apps to improve customer or employee experiences; • A combination involving a broad array of enterprise benefits from security to DirectAccess; • New mobile scenarios with ‘Windows To Go’ onto enterprise-level management... ... the bottom line is that Windows 8 is designed as a foundation that a business can build its operations on – literally from end-to-end across a variety of devices, locations and users to be truly mobile and highly competitive.

“Windows 8.1... offers a broad range of business enhancements in terms of user experience plus improvements in manageability, security, mobility and networking....”


The Melting Pot:

Stimulating and supporting social innovation in Scotland – and they’re on the hunt for new board members to help them achieve their goals Times and priorities change. Businesses come and go. But the need to be innovative and forward thinking has never been greater, nor the challenges harder. Nestled high up in the former Jenners’ carpentry workshop, above the everyday ground-level bustling pubs, restaurants and shops of Rose Street, you’ll find a diverse community of people quietly getting on with making the world a better place. Welcome to The Melting Pot – Scotland’s Centre for Social Innovation. A world-renowned social enterprise, The Melting Pot provides a range of dynamic resources for social change makers. When it opened in 2007, it was a pioneer in providing co-working facilities – long before the concept went viral. The Melting Pot is choosy about who it works with, supporting around 150 organisations of all shapes and sizes to ‘work, meet, connect and learn’. It also supports over 5,000 events a year through a range of publically available meeting and events services. But it’s far more than just an eco-office and event space.

With the arrival of summer, most people are preparing for the inevitable slow down, but social change never stops! The buzz at ‘TMP’ is building.... Scotland leads the way in social enterprise: our booming exports are not just about sending whisky to China! In late June John Swinney, Scottish Government Cabinet Secretary for Finance and Sustainable Growth, will welcome emerging and established organisations within Scotland’s Social Innovation sector when he opens a special event that TMP is co-hosting with Glasgow Caledonian

University, to disseminate the latest research: how regional funds can be accessed in order to transform Scotland’s socially innovative solutions into ones that can be scaled up and applied nationally and internationally. Mr Swinney will also announce the winners of TMPs’ Social Innovation Incubator Awards. Nine start-up and emerging social innovators will receive a 12-month package of expert input, practical support and peerto-peer learning – helping them turn their ideas for a better world into reality.

Directors: Can you help us reach our goals? The Melting Pot is preparing for the next stage of its own development – that delicate balance between growth, consolidation and expansion. To assist this, it is seeking new board members to work in non-executive roles, and/or volunteers to work at strategic level. These roles would provide a valuable opportunity for people interested in supporting and shaping their work by people offering experience, expertise and energy. If you would like further information, please visit www.TheMeltingPotEdinburgh.org.uk and/or get in touch with Claire Carpenter, Managing Director, on 0131 243 2629 or Claire@themeltingpotedinburgh.org.uk

It’s space Jim, but not as we know it! n Co-working Space and Community – flexible options from £10pcm

n Public Venue for Meetings and Events (2-100ppl) n Network of social innovators & entrepreneurs n City centre location - Edinburgh www.TheMeltingPotEdinburgh.org.uk

0131 243 2626

Affordable | Accessible | Attractive | Added Value IoD Scotland Autumn 2013 | 21


Financial matters... with Barnett Waddingham

Questions remain over key pensions issues It’s no secret that the costs involved with sponsoring defined benefit pension schemes are becoming increasingly unaffordable. Barnett Waddingham has recently carried out a survey of FTSE 350 companies which highlights the extent of the problem. On top of this, there have been many comments in the media regarding the potential impact of independence on pension scheme funding for Scottish businesses, adding to the uncertainty. Mike Kennedy, partner at Barnett Waddingham, takes up the story...

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Effect on company balance sheets

Despite significant increases in share prices over the past 12 months we only see a slight improvement in DB scheme deficits as a percentage of the market capitalisation of FTSE350 companies. (See chart below). This ratio decreased to 6.5% (on an IAS19 basis) of the market capitalisation for FTSE350 companies in 2012 (7.4% in 2011). For six FTSE350 companies the deficit exceeds 20% of the market capitalisation of the company after removing the pension scheme liability; for 33 companies it exceeds 20% of the balance sheet value of equity (again, after removing the pension

Pension deficit as % of Market Cap

Deficit as % of Market Cap/Equity

Pension Deficit as % of Equity

22 | IoD Scotland Autumn 2013

scheme liability). The persistence of DB deficits is a result of factors that are largely outside the control of sponsoring employers and pension trustees, in particular the sustained low yield environment on Government bonds in the UK. The Pensions Regulator has been given a new objective this year, which is intended to provide some breathing space for employers grappling with these deficits and ensure that pension scheme funding requirements do not choke a company’s ability to invest for future growth. Time will tell how effective this new objective will be (we are still awaiting details of how it will be put into practice) but it should at Deficit contributions and implied deficit clearing period Implied deficit clearing period (years)

ith the Government looking for companies to increase their levels of investment to kick-start the economy, the significant level of contributions being paid to clear defined benefit (DB) pension scheme deficits are unwelcome. The persistence of DB scheme deficits, despite the contributions being paid by employers and some respectable returns on pension scheme assets, are a cause for concern when considering future growth plans. Building on the research we have carried out on FTSE350 companies over the past few years, we have considered and quantified the continuing impact DB schemes are having on UK business. The charts on this page highlight a couple of conclusions from this research.

• Implied deficit clearing period over 15 years, deficit contributions less than 25% FCF • Implied deficit clearing period less than five years, deficit contributions over 75% FCF • Implied deficit clearing periods and contributions at more normal levels

“Yes”, and Scotland is admitted to the EU as a member state in its own right, current EU rules would require all schemes operating in both Scotland and the rest of the UK to apply for authorisation as a “cross-border” scheme. While this appears to be just more red tape, there may be a sting in the tail as successful authorisations may come with stringent funding requirements – in short, employers could have to rectify immediately any deficits in DB pension schemes, calculated using prudent assumptions. By way of contrast, however, First Minister Alex Salmond has been quoted as saying there would be no difference in the length of time companies are given to pay off deficits. If EU cross-border rules are applied to UK-wide schemes then in practice it is possible that sponsors would be allowed a grace period before the requirements would fully kick in. For example, the UK and Ireland have special cross-border arrangements which gave affected companies three years to fill deficits. In any case, for many companies the required time to rectify deficits could reduce significantly.

In reality

Fully funded DB pension schemes are now very much in the minority. As such, most employers have in place a recovery plan in order to plug any deficit in their scheme. The graph above compares implied deficit clearing periods against the amount of deficit contributions expressed as a proportion of free cash flow, for the FTSE350 companies that we have analysed.

Despite the opinions and assertions made by both sides in the independence debate, the impact of a Yes vote next year on pension scheme funding remains far from clear. With the latest polls showing the probable outcome being tilted towards a “No” vote next September (albeit with a high proportion of voters undecided) these pensions issues may seem a distant concern for now. If there is any degree of clarity, it is that independence would result in a large amount of reorganisation for UK pensions, not least with Scotland having to set up its own protection and regulation systems. Whether this provides more flexibility to employers in funding these schemes remains to be seen. As is always the case with pensions, the devil will be in the detail.

Impact of Independence?

Want to know more?

Deficit contributions as % of free cashflow in 2012

least be welcomed as a rare piece of good news for employers with DB pensions.

Recovery periods

One particular uncertainty which may have implications on DB pension scheme funding is the result of next year’s vote on Scottish independence. If the result is a

n Full details of our research on FTSE350 companies can be found at www.barnett-waddingham.co.uk/ news/


Acting as one team The UK’s largest independent provider of actuarial, administration and consultancy services Our services include: • Corporate Consulting

How to contact us

• Employee Benefits

• Investment Consulting

Barnett Waddingham LLP 163 West George Street Glasgow G2 2JJ

• Longevity Consulting

0141 243 4400

• Insurance Consulting

• Pension Administration • Private Clients (inc SIPPs, SSAS, Executive Pensions & Investments)

@

info@barnett-waddingham.co.uk www.barnett-waddingham.co.uk

• Public Sector Consulting • Trustee Consulting

Barnett Waddingham LLP is authorised and regulated by the Financial Services Authority and is licensed by the Institute and Faculty of Actuaries for a range of investment business activities

AMERSHAM | BROMSGROVE | CHELTENHAM | GLASGOW | LEEDS | LIVERPOOL | LONDON


Education

New qualifications are here!

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ugust 2013 marked the start of the new National Qualifications, which have been developed by the Scottish Qualifications Authority (SQA) to support Curriculum for Excellence. Standard Grade exam results were issued for the final time in August. Now, the new National 1, National 2, National 3, National 4 and National 5 qualifications are being delivered in schools and colleges across Scotland. SQA’s new qualifications will help young people to demonstrate the knowledge and skills they have acquired at school or college and enable them to prepare for employment, further learning and/or training.

What is changing?

The table below shows which qualifications the new National Qualifications will replace. To find out more about the new qualifications and how they compare with existing qualifications on the Scottish Credit and Qualifications Framework (SCQF), visit www.sqa.org.uk/readyreckoner

When are the new qualifications being introduced?

The new Nationals – National 1, National 2, National 3, National 4 and National 5 – are available now. August 2014 will see the introduction of the new Higher, and the new Advanced Higher will be introduced in August 2015. The first young people to leave school with the new

SCQF level

Current/Former National Qualifications

Bright future: The new qualifications will help Scotland’s businesses better appreciate the talents of the country’s learners National 1, National 2, National 3, National 4 and/or National 5 qualifications will do so in June 2014. Many young people will continue to study at school or college after they turn 16 and some may go on to study for the new Higher and Advanced Higher. The first of these young people will leave school or college in June 2015 and June 2016 respectively. Some schools and local authorities may choose to introduce the new qualifications at different times, so these timescales could vary across the country.

Replaced by

New National Qualifications

1 and 2 Access 1 and Access 2

National 1 and National 2

3

Access 3 Standard Grade (Foundation Level)

National 3

4

Standard Grade (General Level) Intermediate 1

National 4

5

Standard Grade (Credit Level) Intermediate 2

National 5

6

Higher

Higher (new)

7

Advanced Higher

Advanced Higher (new)

24 | IoD Scotland Autumn 2013

How will the new qualifications be graded?

The new Courses at National 2, National 3 and National 4 will not be graded. They will be assessed as Pass or Fail by teachers and lecturers in schools and colleges. Courses at National 5, Higher and Advanced Higher will be marked externally by SQA and graded A to D or ‘No Award’.

Where can I find out more? SQA’s website –

www.sqa.org.uk/ cfeforemployers – is full of useful information to help employers understand more about the new qualifications. You can keep in touch with SQA on Facebook at www.facebook.com/ ScottishQualificationsAuthority, follow them on Twitter @sqanews and subscribe to their YouTube channel at www.youtube.com/ user/SQAonline SQA’s Curriculum for Excellence Liaison Team is also available to answer any queries you may have about the new qualifications. Their contact details can be found at www.sqa.org.uk/cfeteam


Press and PR

How public are your posts?

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e all know how easy it is to rush off an email in the heat of the moment, only to regret what we said as it disappears off into the internet. In times gone by, there was at least the opportunity to have second thoughts and fish the letter out of the mail room before it went off to its recipient. Now, of course, we have even more ways we can instantly put our ‘foot in it’ through social media. One of my clients is the operator of an international online job board and – in the course of producing their social media content – I keep coming across articles and news stories reminding job candidates that employers will check their Facebook and Twitter posts. If this check brings up wall-to-wall snapshots and anecdotes from drunken nights out that may well ring alarm bells with a recruiter As we have seen with high-profile cases such as the Lord McAlpine libel cases, it is not just job candidates who can land in hot water. Sally Bercow had to settle out of court over her infamous “Why is Lord McAlpine trending? *innocent face*” tweet. And it is not just high-profile public figures who get hauled up for their online comments. Much closer to home a pensioner here in the north-east was fined £300 for racist comments after branding Travellers as “scum” in an online post. Remember, too, that journalists and news media not only use Twitter and other social media to promote their news media. They also trawl social media in search of stories. Clearly that can be a very good thing if they come across something that you want to share with a wider audience. But it’s not so good if it is something you didn’t think too carefully about before you posted it! The privacy of what you say on social media was tested a couple of years ago by a complaint to the Press Complaints Commission. The complainant was a civil servant who had posted comments with her feelings about her job. She had included the disclaimer that the views were her own and not representative of her employer. In her opinion, she believed her posts were private and were published only to her 700 followers. The Daily Mail and the Independent on Sunday argued that her Twitter account was not private and the posts could be read by anyone. The commission concluded that the newspapers’ action did not constitute ‘an

Social media is the dominating force of modern communications – but far too many people appear to think that posting their most private thoughts and moments will stay exactly that – private. Unless you take care, nothing could be further from the truth, says Ken McEwen unjustifiable intrusion’ into the complainant’s privacy. You can, of course, change the privacy settings on your account. For example, on Facebook you should choose carefully who will be able to see your posts and pictures. On Twitter you can protect your tweets so that only those who you approve to follow you, will be able to see your posts. But, for many of us, restricting access to Twitter posts rather defeats the object of getting our message out to as many people as possible. Social media channels – particularly Facebook company pages and Twitter feeds – are very powerful means of communicating with clients and customers and building their loyalty. They can even prove to be useful sales channels, as Dell proved in the early days of Twitter, when they claimed it had earned them $6.5 billion in sales. But, as with the hasty email, the bottom line has to be to stop and think before hitting “send”. Whether you are a job applicant or a business leader, don’t publish anything on a public social media channel that you wouldn’t happily say in public.

• Ken McEwen, the past chairman of IoD Aberdeen, has his own PR consultancy business Ken McEwen Public Relations. See www.kenmcewen. com for more details

Sally Bercow arrives at the High Court for a hearing over her tweet about Tory peer Lord McAlpine. Mrs Bercow was among many people who had legal proceedings brought against them for their comments about the peer on social media Photo credit: Max Nash/PA Wire

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Staff development

Coaching: the way to get everyone playing better by Bryan McCrae

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ook at any successful sports team, from giants like Manchester United Football Club through to your school teams, and you will find a sports coach behind the scenes. But what do these coaches actually do and why does it work?

Oh, it hit the post At the most basic level all coaching is about unlocking a person’s potential to learn and ability to change. Potential is often limited by fear of failure, lack of confidence and lack of self-belief. In football this might be the fear that you’ll miss a crucial penalty; in sales it might be the fear that if you ask for the order you’ll be told ‘no thanks’, or even fear of making any cold-calls at all. In every form of coaching the purpose is to build self-belief, perhaps to overcome the fear of failure or perhaps to help grow the belief that performance can always be higher. In football, you don’t stop coaching your best players just when they become most successful! Off-side rule Coaching might happen in many hour-long face-to-face sessions over several weeks, but it can also happen in much smaller, bite-sized chunks. External professional coaches might be involved, which is great if the budget allows for it, sometimes sales managers will coach, which is great if they have the skills and can make the time to do it and sometimes, armed with the right tools, the players can coach themselves. However it is done, it is based on two key principles. The first is awareness – knowing what is possible and knowing what is happening around you. In football this might be knowing that there are only three minutes left to full time, and spotting a likely gap in your opponent’s defence. In sales this might be realising that your cold calls get through to more people before 9.30am than at any other time of day and planning your day around that discovery. The second principle is responsibility, taking ownership of what you do, rather than leaving others to do it for you. In football this might be taking the initiative to force that break

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in the defence line-up, while in sales it might be persuading your manager to move the daily sales meeting to 9.30am rather than 9am for a week so that you can see if the cold calling success rate goes up. The meaning of life Motivation, that Holy Grail of high performance, depends on providing people with a way of meeting their own individual needs. Once basic things like food, shelter and looking after the family are taken care of, the emphasis shifts to higher level needs, such as recognition, status, enjoyment, meaning and purpose. So how can we boost motivation and performance through coaching without impacting selling time (on the road or on the phone) or blowing the training budget? Beat the budget This is where technology marches to the rescue. In the same way that in football, digital match systems, with player tracking, technical analysis and so on, help players understand what is happening in a match better and fine-tune tactics as a result, advanced multi-media sales learning systems provide a way to capture what happens in the most challenging sales situations, then offering a wider range of options to overcome them. In both cases the latest technology allows users to analyse what is happening and then leverage proven coaching techniques to increase capabilities and performance in new and exciting ways. Save time and money This latest technology saves time, money and provides a consistent approach to learning, whether used stand-alone or alongside more traditional methods. It works for both the top performers and for the rest of the team. It is easily carried out on a day-to-day basis, in bite-sized chunks. It can be used in and around normal selling activities, which is why it is a great, cost-effective, way to learn new, more helpful, selling habits that quickly lead to greater sales success. For a free trial of this approach to sales coaching visit www.sales-motivations.com/free1day

Bryan McCrae is a leading business and sales psychologist and MD of SalesMotivations. Email him at bryan@salesmotivations.com


Metic will help you maximise the value of your IP assets The assets from which you derive the value of your business don’t just involve buildings, stock and contracts: remember to add in the value of the intellectual property your business holds, too. But as Metis Partners often finds, too many firms overlook this key area

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etis Partners was founded in 2003 by Stephen Robertson with the aim of helping businesses to maximise the value of their intellectual property (IP) assets – or, putting it simply, “transforming IP assets into cash”. Metis has developed its own proprietary IP asset valuation and assessment tool, Metisology™, which is the IP asset lens through which it assesses a company’s IP assets and valuation. Often these IP assets are used to underpin key business objectives and provide them with competitive advantage or freedom to operate. The key services which Metis Partners provide are:

companies directly with the marketing and sale of IP assets. Metis Partners regularly helps clients monetise IP assets through brokering deals for the sale, purchase, licence or other exploitation/ commercialisation of their IP assets. Metis Partners has worked with many corporate recovery specialists including Zolfo Cooper, PwC and Ernst & Young and has raised over £20m selling IP assets purely out of insolvency! Increasingly, Metis Partners is being instructed by banks and engaging with their customers to help them restructure debt repayment and recovery through different IP asset focused corporate structures using IP assets as security.

IP Advisory For larger corporates Metis Partners carries out IP optimisation assignments, often focused around IP valuations, trade secret protection or IP protection in JVs or partnerships. For SMEs the focus is usually on identifying often undervalued or overlooked IP assets, and through Metis Partners’ sharp insight, showing clients how to leverage these critical IP assets to develop dynamic strategies that can be used to create competitive barriers to entry, differentiating them from competitors and generating new revenue streams or maximising the valuation of the business prior to exit / fundraising. Metis also offers a virtual CIPO service for IP-focused companies, driving the agenda and actions of the IP committee – often for VC-backed companies focused on building value prior to exit. We have increasingly seen this product utilised with both UK and US clients.

IP Due Diligence / IP Finance Metis Partners IP expertise is used by corporates in M&A situations to identify significant commercial IP-related risks in transactions and often to guide the pricing of IP assets being acquired. Investors and banks also rely on Metis Partners as part of their due diligence exercise to get to grips with the IP asset value and risks associated with the target business and to anticipate a plan for possible recovery / accelerated disposal in the future. Notably Metis Partners has carried out such work for the Clydesdale Bank plc on more than 10 venture debt transactions with a combined lend in excess of £30m to IP rich companies including Lab 21, DisplayLink, Cambridge Semiconductors, Aircraft Medical, Red Spider Technology, Cascade Technologies and Touch Bionics to name a few.

IP Valuation Metis Partners carries out valuations of IP assets for clients in a variety of situations including, purchased goodwill, IP asset acquisition and to support IP asset divestment. With regard to exit support (IP valuation), Metis Partners has worked with various companies, helping them boost the sale price / business valuation in advance of exit or after an approach has been made, by cataloguing the IP assets they have and improving the buyer’s perception of the true cash value through the recognition of the importance of the IP assets which underpin the competitive advantage of the business. IP Corporate Recovery Metis Partners has built up a wealth of experience working with UK insolvency practitioners, helping them to maximise the financial recovery for creditors through the sale of IP assets. Metis Partners identifies catalogues, assesses, values and sells a wide range of IP assets on behalf of corporate recovery specialists. In addition to this Metis Partners assists

IP Audit Metis Partners specialises in providing IP audits to help companies identify the key IP assets that they possess. By using the Metisology™ tool, all IP assets are identified, including critical know-how, trade secrets, patents, trademarks and software. The outcome is full rating of the IP assets and an action plan to improve their management, protection and enhancement. This usually identifies significant further competitive advantages for the business plus an increase in its overall valuation. As Metis Partners has grown and evolved it has received many plaudits. It was named Leading Adviser of the Year at the Acquisition International M&A Awards 2013 for its work on Clydesdale Bank funding for Lab21; took the ACQ Global Award for UK Specialist IP Advisory Firm of the Year in 2012; and the IP Asset Valuer and Auctioneer of the Year at the 2011 Insolvency and Rescue Awards. Furthermore, as an entrepreneur behind a growing business, Stephen continues to widen the horizons of Metis Partners’ business activities, pursuing global growth and opportunities. On the back of recent assignments and growing interest in IP-backed finance in Asia, Metis Partners will be working in Singapore and Malaysia later this year.

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Features

How effective is your personal brand? by Laura Gordon, Leadership Coach at Corporate Connections International

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ou don’t even have to leave your home these days to risk damaging your personal brand, even if you never set out to have one. How is this possible? Your personal brand is the way people perceive, think and feel about you. It’s the impression you make on others. And with the internet and social media, you don’t even need to have met someone to make a lasting impression. Everyone has a personal brand. The question is how effective is it and is it working in your favour, or is it actually holding you back? Not knowing the answer to that question can mean the difference between career success and career mediocrity. So, what are the best ways to maximise your own personal brand in the technology-driven 21st century? Your personal brand should be authentic, consistent and easy to communicate.

Decide who you are and what you stand for. Ensure that your behaviour is authentic and congruent with your own personal values and you will build trust in those around you. Try to pretend you’re someone you’re not and eventually people will stop believing in you. Your personal brand consists of three main elements – the ABC’s of Personal Branding appearance, behaviour and communication. Imagine you’re a product: your appearance is the packaging, your behaviour is how the product performs and the way you communicate is how the product is promoted. To be effective your personal brand should have a USP – a unique self-proposition. What do people say about you when you’re not there? Are you a networker, a connector, a salesperson extraordinaire? What differentiates you, sets you apart from the crowd? Understand the importance of first impressions. First impressions can be face-to-

face, by phone or email, or online via social media or Google search. So make sure you don’t let yourself down on any of these counts. Ensure your LinkedIn account is up to date and fully optimised and is a professional representation of you. Be memorable. As Maya Angelou once said, “....people will forget what you said, people will forget what you did, but people will never forget how you made them feel.” Consider how you come across to others and whether people’s perceptions of you are how you’d like them to be. Embark upon a 360º profiling exercise asking friends, colleagues and clients to provide feedback on your strengths and weaknesses, providing suggestions for development and improvement. And consider how you want to be known. Remember, your personal brand is either working for or against you. If you aren’t taking control of it by consciously defining and communicating a brand that brings you greater success, you may actually be damaging it and preventing yourself from reaching your full potential. So, develop the personal brand you want today, and learn how to enhance it. It can be one of the most powerful ways to succeed in your career and life.

IoD Scotland and First ScotRail have agreed two exclusive membership offers. n

FREE upgrade to First Class 20% discount on Sleeper

n First Class accommodation

Valid from 1st February 2012-31st December 2013 Enjoy a FREE upgrade to first class travel on First ScotRail services. This offer is available to IoD members, and cannot be used by other people travelling with you (either family or work colleagues etc). The IoD membership card must be presented to the conductor on-train along with the valid ticket type for that journey. It will be valid on 4 ‘walk up’ fares/ticket types: 1. Anytime Single 2. Anytime Return 3. Off Peak 4. Super Off Peak n It will be valid on ScotRail operated services only. n It will be valid only on ScotRail services where 1st Class accommodation is available. n The offer is valid until 31/12/13 - ScotRail reserves the right to withdraw with a month’s notice.

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Exclusive IoD Scotland ScotRail Caledonian Sleeper offer There’s a 20 per cent discount available for IoD members using ScotRail‘s first-class sleeper service. The tickets should be booked by telephone with the ScotRail Group Helpdesk. Please call 0845 676 9901, supplying IoD membership number. Payment must be made with a credit/debit card and the tickets will be sent directly to the person booking. Please quote “IoD” when booking. Terms and conditions: Travel must be made on dedicated First ScotRail Caledonian Sleeper services only. Valid on new bookings made until 31/12/13 inclusive only. Only valid on journeys above from 01/02/12 to 31/12/13. Cannot be utilised in conjunction with any other promotion or offers. First class postage is free – please allow 5 working days for your tickets to arrive. ‘Next Day’ delivery is £6. Subject to availability.


Analysts point finger at apps over security Exciting new apps that you can download for free may come at a far higher price than you would expect

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etwork security company Juniper Networks has undertaken an investigation into 1.7 million mobile apps – and concluded that free apps cost us our privacy, expose us unnecessarily, and most app permissions are unjustified. Juniper Networks’ Mobile Threat Center (MTC) analyzed over 1.7 million apps on the Google Play market from March 2011 to September 2012. Its research found that most app users are being tracked, surveilled and put at risk for exposure, and this activity can be unjustified by some app makers. “We found a significant number of applications contain permissions and capabilities that could expose sensitive data or access device functionality that they might not need.” Free apps, in particular, Juniper said, “are 401 per cent more likely to track location and 314 per cent more likely to access user address books than their paid counterparts.” Most smartphone owners download lots of applications, and the number of downloads is expected to reach upward of 45 billion in 2012, of which 21 billion are Apple apps. It’s widely believed that free apps take and collect more data – such as tracking user location – than users are comfortable with. Juniper cautions that users are often presented with a list of permissions they must agree to when downloading apps – but few people understand what they’re agreeing to. Most don’t know how much private information they are giving away to the companies behind the apps, or how easy it is for the private info these companies collect to be exposed. Juniper focused on the facts that both free and pay-for-play apps: - Track your location - Access your address book - Silently send text messages - Can clandestinely initiate calls in the background Possibly more concerning are the other permissions being requested from applications, such as the ability to clandestinely initiate outgoing calls, send SMS messages and use a device camera.

An application that can clandestinely initiate a phone call could be used to silently listen to ambient conversations within hearing distance of a mobile device. Similarly, access to the device camera could enable a third party to obtain video and pictures of the area where the device is present, as was recently presented with the proof-of-concept Spyware PlaceRaider. Juniper’s report revealed no small amount of alarm and concern on the researchers’ part – especially about the pervasiveness of mobile tracking – as well as some unexpected insights. According to Juniper Networks, many free smartphone apps cost users their individual privacy and control over personal, sensitive and private information about everything from where they live and where they go (location tracking), to who they talk to (address book access), what they say (listening to calls), and potential impersonation or interception of transmitted communications (making clandestine SMS or calls as the user). The problems emerging from apps accessing – and potentially exposing – personal information about you not required to run the app could be solved by apps doing a better job of disclosing specifically why they need permissions to use address books, track user location and access phone functions that could put the user at risk of impersonation, surveillance or exposure. Juniper concluded that the apps industry needed to change, and help people understand what is actually occurring on their device and with their data has considerably more value than a list of permissions. More educated users means they are more comfortable installing apps and less likely to uninstall once they see the number of permissions being requested without explanation. One thing is true: free apps definitely ‘cost’ us more than we know, and app users have no control over the data and permissions being claimed on their devices by app companies. In my opinion, the naive hope for best practices in the app ecosystem for consumer safety is a childish fantasy.

“It’s widely believed that free apps take and collect more data than users are comfortable with... ”

IoD Scotland Autumn 2013 | 29


Heritage and education Taken from the archives: A woman washing clothes, in the 1920s

Unlikely links operate throughout business, but how can supporting Scotland’s education resources on the country’s heritage help you address skills shortages and bring further value-added business benefits? Don Carney explains

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Saving our heritage closing the skills gap

am lucky enough to have lived on the same farm in rural Aberdeenshire as five generations of my ancestors. Some 25 years ago I decided to find out what has been written about my family and the people like them – ordinary, rural people. However, after extensive library searches I found relatively little material about these ordinary people and their counterparts across Scotland. I worked to change this and today, I have amassed over 600 hours of unique material about the lives of ordinary people in the North East of Scotland. It is acknowledged as the world’s largest collection of any community on video. Yet this represents a microcosm of a past Scottish society. Today my material has been appraised and endorsed at the highest level within academic, educational, political and curatorial establishments. This archive will be used extensively through schools. All my clips have been customised for the new Curriculum for Excellence and contribute to all teaching input. And it is this link with schools and the future generations of employees that they are producing that opens the door for businesses to get involved and solve one of their major problems in the future: skills shortages. This will be a major problem for all Scottish companies in the future. It will be challenging to influence pupils to choose your sector, and your business, for their future employment. My company, Carney Heritage Productions Ltd, offers a way you can influence them through sponsorship of the video archive, giving you direct web-based access into all Scotland’s schools. I am now offering Scottish companies an opportunity to sponsor parts of this collection. This sponsorship will enable my clips to be available to schools through SCRAN’s Curriculum for Excellence portal (SCRAN is part of the Royal and Ancient Monuments of Scotland). This is the biggest supplier of educational resources

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for the Curriculum for Excellence. Education Scotland will also promote my clips and database to teachers. Why should a business get involved with this project? There are two reasons why you should support this new, innovative and unique educational provision. You could just view your support as a purely philanthropic gesture. This could apply to anyone who sees this project as one which will be for the greater good of our society, someone who acknowledges the endorsements this digital video archive has achieved and the new resources it can bring to the Curriculum for Excellence within every Scottish school. Perhaps you are someone who shares my vision that the cultural identity and the achievements of the ordinary Scottish person circa later-1800s to mid-1900s is worthy of being showcased and safeguarded for posterity. The second reason for supporting it is to help you address the skills shortage within your sector of the Scottish economy by providing access to the new employees coming through. This is facilitated by my strategic relationship with SCRAN and the web-based link to the

sponsor’s careers information that will be available through the portal. Sponsors will make a one-off payment and this will provide them with access 24/7 to all Scottish schools for the lifetime of that business.

Value-added business criteria. • A web-based facility that will host your careers information will be available to every Scottish school, both primary and secondary, and targeted to pupils, teachers, including career teachers and parents. • Opportunity to address your particular skills shortages in your customised focused manner. • Show all career entry points from apprenticeships to Further and Higher education. • Reduce your operating costs, increase your efficiency and increase your profit margins. • Promote your company’s philosophies/ brand/product. • Have the facility not only to attract pupils to your sector through current careers advice but also be in a position to influence their future career opportunities. • Give your corporate social responsibility image a boost. Taken from the archives: ‘Stooking’ corn • Highlight your contributions to contemporary education and economic sustainability. • Target a wider audience through the SCRAN network which offers all its resources, including mine, to public libraries and Further and Higher educational establishments. • To find out how your company can gain significant competitive advantage by supporting this exciting project, contact Don Carney at info@scottishheritage.co.uk


The West Lothian Economic Growth Plan is a co-ordinated development plan by West Lothian Council, Scottish Enterprise and Scottish Government which will bring together activities worth around £29 million over the next 5 years to support individuals and businesses in West Lothian. Help is available to businesses who are planning to start-up, locate or expand in West Lothian through the Economic Growth Plan. Contact West Lothian Business Gateway now if you are: •Introducing a new product or service •Investing in manufacturing/quality improvements •Opening up new markets through e-commerce •Developing your competitiveness through marketing and staff development •Expanding and recruiting •Exporting We offer a range of flexible business support packages that can be tailored to meet business needs including areas such as funding, supporting recruitment, research and development, specialist advisory support and marketing.

Make an appointment with an adviser to find out if your business is eligible by calling 01506 282383 or email bgateway@westlothian.gov.uk


New Qualifications. New Opportunities.

The Scottish Qualifications Authority is introducing new qualifications in Scotland to support Curriculum for Excellence. The new National 1 to National 5 qualifications are now being delivered. These will equip learners with the skills and knowledge they need to succeed beyond the classroom. For more information, visit www.sqa.org.uk/curriculumforexcellence

Iod scot autm 13  

IoD Scotland membership magazine, published by Rob Beswick

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