37 minute read
Leadership and Emotional Intelligence in the Modern Work Environment
By Constantinos Kypriotis, Senior Manager, KPMG Limited
Stephen Covey, one of the most inspiring authors and experts on leadership, has frequently emphasised that leadership should not be confused with management, noting that “Management is efficiency in climbing the ladder of success; leadership determines whether the ladder is leaning against the right wall.” In other words, leadership is not only about the effectiveness of doing things right but doing the right things and in an efficient manner. But why is leadership so important in the current working environment and how is this linked to emotional intelligence? Leadership is a person’s ability to engage in a process of encouragement, inspiration and guidance of others to perform a task. Ideally, the leader acts as the role model for others to follow and is the one who enjoys the team members’ acceptance. Their relationship should not be based on fear or intimidation. Successful leaders and successful companies are those that value and invest in a fruitful cooperation with the rest of the workforce for long periods, while at the same time cultivating trust, transparency and fairness. As Richard Branson notably advised: “Train people well enough so they can leave, treat them well enough so they don’t want to”.
Emotionally Intelligent leaders
Emotional intelligence plays a key role in companies and is closely linked to leadership as it reflects someone’s ability to coach others passionately and help them evolve. This can be achieved in a working context where goals are clear and every individual plays an important role in an environment where initiative, motivation, appreciation and mutual trust flourish. Competitive work environments change at laser-fast speed. Especially in settings where teamwork dynamics play an important role, emotional intelligence can be a
Emotional intElligEncE can bE a gamE changEr for succEss in a company
game changer for success in a company. According to Daniel Goleman, emotional intelligence is the ability to recognize, understand and manage our own emotions and to recognize, understand and influence the emotions of others. By doing so, the leader may encourage teams to outperform and exceed themselves, while capitalising on their abilities to the maximum. This relates to the long-term objective of most companies, which is the gradual increase in revenues and securing the maximum performance from their employees. In the past, emotions in the working environment were treated negatively and often interpreted as signs of weakness or incompetence. The development of new technologies, the need for increased profitability, intense competition and the strict regulatory framework have led modern companies to take a different approach to management, which includes the emotional intelligence factor. Over the years, the business world has come to the conclusion that when emotions are managed effectively, this can lead to exceptional results. This is why companies now emphasise the fact that they consider their human capital to be their most valuable asset. When a team does not feel connected to the leader, it will show unwillingness and refrain from any positive effort. If the workforce is not satisfied, its performance will decline and that will inevitably have a negative effect on the company’s progress. On the contrary, if team members are satisfied and feel that they are an important integral part of the company, they are likely to be more productive. The relevant literature highlights the following five qualities of emotionally intelligent leaders: 1. Self-awareness, which relates to how one’s emotions, strengths and weaknesses affect others 2. Self-regulation, a trait in leadership coaching, which outlines the avoidance of believing in stereotypes, without prior knowledge of people, and the avoidance of verbal attacks and a lack of judgement 3. Motivation 4. Empathy and compassion, which includes the ability to recognise a perspective other than one’s own 5. Outstanding communication skills
Are Leaders Born or Made?
This is a challenging question, often raised by management experts and economists. A charismatic leader followed by a motivated team may be a decisive factor in the success of the company. Over the years, the perception has changed in the direction of the belief that, if someone is provided with the right tools and the proper guidance, leadership can be learned in time. Even the most gifted leaders, without proper training, achieve less than those who invest time and effort in developing and expanding their skills. Effective leadership should be a matter of personal effort for continuous professional development and self-improvement. To sum up, it is clear that leadership at work will always be a unique challenge, as was - and always will be- the art of managing people. The leader of the future is the one who is able to comprehend his/her own and others’ emotions and act accordingly. The leader who shows empathy and compassion to people is awarded with their loyalty. The emotionally intelligent leader activates teamwork, stimulates people to contribute their best and therby increases overall performance.
AChilleAS ZAChARiA
Although the chief executive officer (ceo) of A compAny or orgAnizAtion is the person with ultimAte responsibility for ensuring thAt it functions properly And implements the strAtegy set out by the boArd, the chief finAnciAl officer (cfo) is becoming increAsingly importAnt And powerful. we spoke AchilleAs zAchAriA, finAnciAl mAnAger At iron mountAin cyprus.
There have been numerous reports over the last 2-3 years which suggest that the role of a company’s Chief Financial Officer (CFO) is changing rapidly. Is this your experience?
One of the most critical aspects of staying relevant in any position, is the ability to accept and embrace change. Digital transformation is in everybody’s mind when we talk about rapid changes in the finance department. Our company is proud to be one of the local success stories, when it comes to transforming that department’s operations. In the past four years we have managed to move from a traditional process environment, into a fully digitised and paperless workflow environment. Obviously, it helps that Iron Mountain is the one offering this transformation service but it is indeed something which proved to be easier to roll out than anticipated. Tech advances will definitely continue to force change in more aspects of the finance process environment, and we need to be able to accept this as the new norm.
It has been suggested that the CFO is perhaps the one person in an organisation who sees the ‘big picture’. This suggests that the roles of CEO and CFO are growing closer. Would you agree?
This is especially true in our case, a company with a modern CEO and a strong management team, where the CFO is close to all Senior Executive positions. The evolution of this relationship with all functions is a result of the necessity for instant information exchange among departments. Typically, the CFO has a good picture of both the historical and forward-looking financial performance of each department and of the company as a whole. The CFO is no longer just managing the company’s financial targets but is deeply involved in the strategic planning of the company, with interaction in the targets and performances of business development, innovation, operational and even human resources and compliance.
Have you had to develop certain new skills for your position in today’s changing corporate world?
Technology is the obvious skill which is pretty much anticipated in this digital era. The ability to accept and work with new technology is essential and when the need arises, usually on a tight timeline, you need to make sure you are not left behind. People skills also need to be applied more and more in my daily work routine and you want to make sure you have the right people and leadership skills for that. Typically, finance functions have not paid attention to that in the past and it has come back to disrupt the department operation as well as the interaction with the rest of the company. My personal experience during the acquisition of Fileminders by Iron Mountain and the ensuing transformation from a local, privately owned company to being part of a global SEC-regulated corporation has also
required significant skills-building, both in function know-how as well as in communication with other colleagues on a global basis.
Technology is changing business in many ways. Has it had a direct impact on your work as CFO?
Iron Mountain is at the forefront of transforming local companies for the past four years with the introduction specialised digital solutions. I am happy to say that the first successful project for our digital team was our finance department, which we have managed to seamlessly transform into a completely integrated, paperless workflow environment. Integration between operations systems, HR tools, ECM and our ERP proved to be the setup to help our Digital Solutions Team establish the template for the successful transformation of many of our customers’ finance departments. More specifically, traditionally tedious monitoring and reporting tasks have been automated and are since managed within the integrated system as reports or dashboards with information from all departments, by directly feeding on real data saving on time and minimising disruption. I am pretty sure that I would have a difficult time going back to manually trying to gather information!
How much pressure is placed on the CFO these days due to stricter regulation and compliance requirements?
The first thing we need to accept is that compliance and finance-related
we Need TO ACCePT iS ThAT COmPliANCe ANd fiNANCe-RelATed RegUlATiON iS heRe TO STAY ANd will ONlY iNCReASe iN The fUTURe
regulation is here to stay and will only increase in the future. Obviously, we see a significant impact on our workload, mainly due to the increased requirements of commercial banks but, again, we are utilizing technology to help us with the processing of some aspects of the compliance cycle such as KYCs and, more recently, compliance with the GDPR, which has impacted a lot of the personnel-related activities of the finance function. Moreover, as a subsidiary of a NYSE listed corporation, compliance requirements also rise from SEC regulations and we also need to handle this as part of our routine workload. Building the know-how and skills to manage these requirements has proven a bigger load than one would expect from a nonfinance company.
In your personal role at Iron Mountain, are there aspects of the work that are very specific to the company and the sector or is a CFO doing pretty much the same thing in any company or organisation?
Typical finance requirements, roles and tasks remain similar to the rest of the market, apart from the particular case where our finance department is functionally reporting both to the Iron Mountain Cyprus CEO as well as to the regional finance team. Preparing and reviewing rolling monthly forecasts, annual budgets and multiyear plans still form a core part of our routine, as does the identification of departmental and corporate Risks and Opportunities. A CFO has the responsibility to convert numbers into useful information for members of the Senior Executive Team, so the utilisation of technology has assisted our team in streamlining traditional finance tasks and we are always looking to improve and upgrade interaction with the rest of the company. From my interaction with other CFOs in multiple market sectors, it is obvious that the main difference between our company and others is that, in Iron Mountain Cyprus, it is important to be part of the company culture and the move from a traditional hierarchical into a flat management system built on transparency. All members of the team share the same vision and enthusiasm, which is a powerful driver when it comes to managing targets and reaching our goals.
thE EMErging lAndSCApE of fintECh rEgulAtion
cysec reports increased interest in the applicaBility of Blockchain technology
By demetra kalogerou, chairwoman, cyprus securities and exchange commission
in recent years, investment in financial innovation has increased, changing the way supervised entities provide services and interact with their clients. The scale and pace of innovation in the FinTech sector present unique regulatory opportunities and challenges. They include striking a balance between the use of the latest technologies and maintaining financial stability and security for consumers and investors. At CySEC, we are committed to promoting innovation and its benefits, while ensuring investor protection. In fact, we believe that appropriate and proportionate regulation can improve the demand for innovative services, by increasing consumer trust and confidence in those services and their providers. Today, CySEC supervises 676 entities, including 247 Investment Firms licensed under the MiFID II regime. More and more investment firms in Cyprus are becoming part of the FinTech revolution, creating a unique financial environment that has already enhanced economic growth and employment. Many firms, especially in the Forex industry, are adapting their business models so as to incorporate new technologies, within a long-term regulatory framework that is designed to enhance investor protection, transparency and productivity.
Monitoring financial innovation
CySEC looks to actively support new financial technologies – particularly those that can help finance the growth of the real economy – while demonstrating its commitment to investor protection, through a sound and embedded culture of good governance. In this regard, CySEC established an Innovation Hub in 2018 aiming to explore FinTech and RegTech developments such as blockchain, virtual currencies, Crypto exchanges and DLT solutions. We have already met with more than 25 FinTech/RegTech companies prior to the launch of their products or services and provided them with our views on the applicability of existing regulations, ensuring the safety and protection of investors. CySEC has also established an in-house Innovation Hub Working Group, that will act as a contact point for providers of emerging financial technologies.
risks related to fintech
After engaging with the market via the Innovation Hub, CySEC is witnessing increased interest in the applicability of blockchain technologies, one of the biggest areas of FinTech innovation, in modernday trading. What’s more, blockchainbased crypto-assets are especially significant with regard to the future development of the financial markets. On the other hand, crypto-assets have also been associated with risks, mainly because of the volatility of their trading prices. Their extreme price instability constitutes a significant risk, which could result in investors losing their entire investment. In fact, there have already been numerous incidents of fraud committed through crypto-asset exchange platforms, including incidents of money laundering. At CySEC, we believe that all crypto-assets and relevant activities should be subject to AML provisions. Since launching the Innovation Hub, we have been contacted by entities engaging in crypto-asset activities, a number of which do not appear to fall within the existing regulatory framework. Therefore, CySEC is considering the transposition of the parts of the 5th AML Directive (AMLD5) concerning crypto-asset activities into national law. Taking Financial Action Task Force (FATF) recommendations into consideration, CySEC also advises on gold-plating AMLD5, to bring the following activities under the AML/CFT obligations: a) Exchange between crypto-assets, b) Transfer of virtual assets, and c) Participation in and provision of financial services related to an issuer’s offer and/or sale of a crypto-asset. Such an extension is necessary, as it will address AML risks emanating from cryptoasset activities in a more comprehensive manner. CySEC’s regulatory agenda is based on safeguarding high standards of investor protection and trust, so that the innovative product market grows in a healthy manner. We look forward to the future with great confidence.
ExECUTivE ExCEllENCE
Nicos TimoTheou, a former ceo of cyTa, aNd Koralia TimoTheou, a successful coNsulTaNT, have jusT lauNched Their booK execuTive excelleNce – combiNe leadership aNd maNagemeNT To creaTe aNd deliver value, a 400-page guide ThaT covers all aspecTs of The job aNd frame of miNd of aN execuTive headiNg aN orgaNisaTioN aT aNy level, from Team leader To ceo. here, The auThors aNswer quesTioNs from accouNTaNcy cyprus.
What does research show with regard to business success?
It shows that profitability in the free (capitalist) world has been declining continuously during the past decades and that only 60 (12%) of the Fortune 500 companies of 1955 still existed in 2017. The rest had disappeared.
What is business success?
It is the creation and delivery of value to the organisation’s stakeholders’ satisfaction – ideally, to their delight – with the emphasis on the delivery! So, it isn’t enough to produce value. You need to deliver it. Even then, it isn’t enough to just deliver it. It must satisfy the needs of the stakeholders and ideally delight them!
Who are the stakeholders? What value do they expect?
There are many: Owners, shareholders, investors or sponsors expect a competitive return, a market value increase of their investment, the satisfaction of beneficiaries and a sustainable competitive operation. Lenders expect to be paid interest and capital within an agreed timeframe. The people of the organisation (executives and operatives – all employees) expect competitive emoluments, a high-quality work environment, a fair pension and competitive perks. Customers, clients, consumers, patients, members, students, citizens, etc. expect value for money, promised and implied quality or functionality, reliability, durability or aesthetics. Suppliers, partners and associates expect the prompt settlement of their invoices and productive and reliable cooperation. Government agencies and regulators expect compliance with all applicable legislation, regulation and permit terms and the community expects not to suffer adverse effects, but, on the contrary, to benefit through high-quality employment, fair prices for their services, raw or semi-finished products, natural resources and social responsibility projects.
What creates and delivers value?
The organisation’s enablers – the components of its value streams: This means ethics, governance, culture, processes, data, information and knowledge, nonhuman assets, people (employees) and partners, suppliers and sellers, learning, improvement, creativity & innovation and leadership: the executives – their executive capability: their management and leadership competence and competency, their cultural and team fit and their implementability and their ethics. It’s the executives who get the enablers to create and deliver value and lead the organisation to success or failure. Those in the hierarchy who head organisational entities or projects, from the CEO to the foreman!
So, who or what is to blame for the high rate of business failure?
The usual answer is: ‘Disruptive change’ but this raises a second question with an obvious reply: Who should have anticipated or promptly identified the disruptive change and how would they have acted? Who else but the executives of the organisation! Additionally, in many cases, it is the Board of Directors and, especially its Chairperson, who, in any case, acts as an executive with regard to the operation of the Board.
How is executive success judged?
By the degree of satisfaction of the organisation’s stakeholders when evaluating the value delivered to them.
So, which executives are successful?
The ones whose organisation or project creates and delivers value to its stakeholders’ satisfaction in a sustainable way.
What makes an executive successful?
Partly, it is the competence in comprehending profoundly what makes up the organisation of the 21st century. But this is not enough. Successful executives, besides being productive managers and effective leaders, fit into the organisation’s culture, and its executive team, where applicable, and are willing and able to implement their executive capability, performing three executive roles in a balanced way: 1. The Executive as a Technocrat: Building and maintaining a 21st century organization as a holarchical system based on a hierarchy of tightly knit enterprise business architectures and structures. 2. The Executive as a Manager: Executing the management process: planning, budgeting, organising, staffing, directing (issuing instructions), coordinating, reporting, and productively managing: The organisation as a holarchical system, its ethics, governance, policies & compliance, its culture, value streams, architectures, processes and data, its generic business subprocesses, its brand, its products and services lifecycle and value, its customer lifecycle and value, its finances, its improvement, creativity and innovation, information, knowledge and wisdom, relations with its stakeholders, with the Chairperson and the non-executive members of the Board, with the state (regulators, etc.), with its
partners, suppliers and sellers, its people, its non-human resources, its operations (the execution of its mission) and its strategic projects (the execution of its vision 3. The Executive as Leader: Effectively executing the leadership process: comprehending, conceptualising and communicating to the organisation’s people (architectures, models, mission, processes, vision, strategic projects, knowledge, targets, plans, projects, actual results, deviations…), aligning its people around its values, mission and vision, engaging them to execute its plans, processes and projects, obtaining their commitment to achieve outstanding results, inspiring (extreme) ownership of their mandate, coaching and mentoring them, envisioning improvement and innovation, leading the execution of the mission (its operations) and leading the realisation of its vision (the execution of its strategic projects).
What does international research say about executives?
Unfortunately, it shows that the majority of executives exhibit significant gaps, especially with regard to their leadership competencies, their organisational competences and their capability to combine leadership and management. A couple of examples: 1. With regard to alignment and open dialogue, research shows that 34% of top executive teams are continually misaligned with respect to mission, vision and strategy and exhibit stress. Some 66% of top executives admit that they are unable to raise critical issues (33%-66% in the EU & USA, 75% in Japan, 80% in China) and 80% of Boards are out of touch with their organisation’s reality. 2. With regard to engagement, only 29% of employees are fully engaged, while 26% are disengaged. Engagement is hindered by inadequate evidence-based information, open dialogue and willingness to raise critical issues.
What is the solution to this severe problem?
It is obvious that executives need to develop their organizational, management and leadership competences (their know-how) and competencies (their personal qualities and skills).
How can your book bridge the gap in executive competence and competency?
Our book aims at helping executives improve their own and their associates’ competence and competency.
How would you describe your guide in a nutshell?
It is based on our long experience in executive and consultancy jobs, as corroborated by our extensive meta-research. In Part I, we present in a comprehensive manner the successful 21st century executive’s world. In Part II, we elaborate on what successful executives do and how they do it as managers and as leaders, while in Part III, we present the successful executive’s competences and competencies and how they can be developed further. The book includes many real-life and it is very practical, in that it poses vital questions at the end of each chapter which help readers assess themselves and their organisation.
This sounds like a lot of material to digest!
Yes! This is exactly the reason we call it a guide. It’s like an ‘instruction manual’ for the successful executive. Our readers will all have different experiences and achievements. Some are just starting out; others are already accomplished executives. We hope that everyone will find something he or she needs in there, something that will change the way they operate. To assist organisations further, we offer workshops upon demand and can be reached at either of these e-mail addresses; nicos.timotheou@strategic-change-consultants.com koralia.timotheou@strategic-change-consultants.com
Executive Excellence – Combine Leadership and Management to Create and De-
liver Value is now available on Amazon.uk in electronic and printed formats (€24.99) For more information: www.strategicchange-consultants.com
how to crEatE truSt In thE workplacE
By Andrie Penta, Marketer and Corporate Trainer
In recent years, great emphasis has been placed on the need to create an atmosphere of trust in the workplace, as this has been proven to lead to greater staff input, more creativity and improved performance. Experience has shown that high performers tend to leave a company when they feel disengaged, which is partly a result of a lack of trust in their bosses. When employees don’t trust their leaders, the business tends to suffer. The question is, what should team or business leaders do to ensure that they cultivate trust among their people?
1. ElImInatE FEar Some organizations have cultivated fear among their people, wrongly believing that in this way, they will be pushed into improving their performance. However, if employees know that transparency will get them into trouble, they will be scared to share their real emotional state. A good way to start is to openly invite employees to share their thoughts, experiences and feelings. The next step is to note them down and start identifying the most common issues prior to taking action.
2. acknowlEdgE SuccESS Insecure leaders see their team members as threats, believing that any mistake will reflect negatively on them. This type of leader acts selfishly, out of fear of being exposed. Trust can only exist in a fear-free environment so, instead of focusing on what their people do badly, they should start focusing on what they do well. After all, every mistake made is a step closer to excellence.
3. BE tranSparEnt Leaders have to be everything and the complete opposite. Being a leader of any sort is hard work. Everybody who has been in the hot seat has made mistakes. Some try to hide them and others try to pass on the blame. Accountability is hard to find nowadays. However, the type of leader who tends to be more respected is open and transparent with his/her people in all areas. In this way, employees feel that nothing is kept secret from them and they understand the reason behind every action. The more they know about the organization’s plans, priorities, challenges and opportunities, the more in sync they will be with the leadership team.
4. SpEnd tImE wIth Your pEoplE The C-suite tends to hang out with those of its kind, which is a big mistake. At least half of their time should be spent with staff who don’t belong to the top management. In this way they can establish a deeper connection, involve their people in decision-making and let them get to know the leader by name rather than by title. Trust is built through honesty, effective communication, an open-door policy and small gestures of kindness. Leaders should constantly be asking their employees how they’re doing, what they think and what they’d like to see at work.
5. BE FrIEndS Being a human first and a leader afterwards is what creates strong teams. Focusing on the person, showing empathy, understanding and trying to accommodate any special circumstances can make the difference between a highperformance team and the opposite. Actively listening and trying to assist an employee who might be going through personal difficulties (which can affect work performance), will later foster a deeper level of trust.
TrusT can only exisT in a fear-free environmenT
6. Show that You truSt thEm The most precious thing in this world is trust. It can take years to earn and only a matter of seconds to lose. According to Ernest Hemingway, “The best way to find out if you can trust somebody is to trust them.” Allocate tasks, one step at a time. Trust them to complete each task to the best of their ability. If leaders give the impression that they have them covered, employees will give their 150%.
7. EmBracE FlExIBIlItY There is a global trend towards employee flexibility, remote working and autonomy. Instead of obsessing on location, leaders should focus on engagement and empowerment. By keeping employees engaged, they are likely to be effective, no matter where their desk is. Performance is rooted in trust, no matter where the work gets done.
at thE End oF thE daY, It’S not what You SaY, It’S what You do that mattErS
YiANNiS MiSiRliS: GlObAl MARkeT FORCeS DRiviNG iNveSTORS TO CYPRUS
From the podium of The Economist conference in New York, Yiannis Misirlis, Director of the Imperio Group and Deputy Chairman of the Cyprus Association of Property Developers, spoke extensively about the real estate sector on the island, stressing the fact that it is currently at a stage of recovery, following the crisis of 2013. He noted that, according to the latest stable economic indicators, as well as positive historical data, the country’s real estate sector is, once again, based on very stable and healthy foundations. Speaking about fears of a new recession in the US economy, Misirlis said that the zero yield of European government bonds, such as Germany’s, and the ongoing uncertainty of Britain’s exit from the European Union, are leading risk-averse investors to invest in real estate in Cyprus, which is one of the fastest-growing economies in Europe, currently seeing most of its market indicators in green. “During the decade preceding the global financial crisis (1999-2007), the normal size of the market was 13,000 annual transactions, so there is still a long way to go from the 9,200 transactions recorded last year (2018),” Imperio Group’s Director noted, adding that fundamental principles and market forces are at present creating some very exciting opportunities, especially in the real estate market for rent. He also talked about the fact that international and institutional investors are showing great interest in projects related to tourism and student residences in Cyprus. Finally, Yiannis Misirlis referred to Brexit and expressed his confidence that a number of opportunities will arise, as international property investors are driven away from London & the UK and turn their attention to what Cyprus has to offer.
AffORdAble ACCOmmOdATiON: Time TO GeT ReAl
By Antonis Loizou F.R.I.C.S., Antonis Loizou & Associates Ltd, Real Estate Valuers & Estate Agents
The former Irish Minister of the Environment, Alan Kelly, once announced that developers should build affordable accommodation for Ireland’s citizens – “Get Real,” he added, “and build accommodation which is affordable to the citizens”. The Minister realized that the minimum size of apartments set by the regulations was larger than what people could afford. He adopted the following, next to which I have added Cyprus’ version:
In addition to the reduced sizes, the Minister added relaxations regarding parking requirements, etc., especially in town centres in order to encourage affordable living/rentals in those areas, so that people could be close to their work. The setting of minimum sizes for apartments/residential units is a “red flag” for our company and we have been fighting this nonsense for the last 26 years with no success. The Planning Department has always argued that Cypriots should live in a “decent” space and not in small boxes and, instead of examining what people can afford and, by extension, help solve the housing problem, it chooses to provide our ‘high and mighty’ locals with ample minimum living space, as if all Cypriots are high-earners. Very few countries with planning zones, building density, height regulations, etc., have this additional measure of minimum living space. When one considers that, for residential units, the average sale price is now around €1.500/sq.m. and at the
seaside (near the beach) it is €4.000/ sq.m., you can quickly calculate that that a 5 sq.m. difference in size means a difference in cost of €7,500€20,000. When VAT, transfer fees, etc., are added, the difference can be anything between €10,000 and €30,000. Housing goes in circles. We start in small apartments and, as the family grows and income increases, we move on to bigger accommodation. This means that reduced size units reflect not only their affordability for the now poorer Cypriots but make the sale of such units more attractive in terms of attracting the foreign market. We have managed several projects over the years and, nowadays, the older ones with a 2-bedroom apartment of 60 sq.m. (built prior to the minimum size measures) are the most marketable, especially for holiday home units. At Ayios Elias (Protaras area), because the project has 60 sq.m. 2-bedroom units, not only are they the most marketable but there is a waiting list of buyers (average sale price €100,000), as opposed to “better” and more spacious accommodation (80 sq.m.) with a €20,000 price difference, for which there is practically no demand. In a project in Larnaca, located 100 metres from the beach, the sale price is €300,000 whereas a 60 sq.m. apartment would cost approximately €170,000. For those who are against these smaller units, we say, “If you can buy a Mercedes, why buy a Mini?” It is, of course, all a matter of price. However, there is no standard set for cars and other products for the ‘blue-blooded’ Cypriots who need to have ‘proper size’ accommodation. We blame the Planning Department, the Cyprus Technical Chamber, the Association of Architects and others for failing to grasp this basic human/economic circumstance of the country. The Developers’ Association seems to have no views on this matter, even though its members would
Existing Regulations(IR) New Regulations (IR) Cyprus*
One bedroom 55 sq.m. 45 sq.m. 55 sq.m.
Two bedroom 90 sq.m. 73 sq.m. 90 sq.m.
Three bedroom 100 sq.m. 90 sq.m. 100 sq.m.
Studio (new concept) 40 sq.m. 45 sq.m.
* depending on location
be the prime beneficiaries of any change. Ours seems to be the only free voice in the wilderness of nonsense and we feel that such narrow-mindedness should have a penalty. Those who cannot understand the basics of the construction industry should either be sent home (if Government officials) and/or made to pay compensation for the loss that they are causing (financial and human) to the country’s coffers. When one considers that, today, approximately 27%% of buyers are foreign (the figure was 45% in 2008), the local market should not be ignored, bearing in mind the large percentage that it comprises in terms of demand. Recently with the increasing problem of affordable housing and rising rents, various associations, as well as the Government, have woken up to the fact that we have a problem, especially with student housing and rentals. All sorts of ideas are now being thrown onto the table for discussion, including increased building density, tax incentives and the abolition/reduction of minimum sizes. Why it has taken them 26 years to realise this is beyond us. Could we ‘borrow’ Andrew Kelly for a while to examine the nonsensical state of our planning requirements? After all, it took another Irishman (John Hourican) to start fixing Bank of Cyprus!
ExpEriEncE, FlExibility, rEsponsivEnEss and commitmEnt to Quality
These are The qualiTies ThaT have made NeTu CoNsulTaNTs lTd. oNe of The mosT suCCessful iT soluTioNs aNd serviCes orgaNizaTioNs iN The easTerN mediTerraNeaN, as The CompaNy’s seNior CommerCial maNager, ChrisTos TaTTis, explaiNs.
NetU is a leading Information Technology solutions and services organisation in Cyprus and Greece. What is the key to its success?
Since its founding, NetU has focused on the software sector, with years of experience and a unique know-how. This specialized know-how, combined with the methodologies we use, our excellent knowledge of the market and the qualified staff we employ are the keys to our success. These factors give us the advantage of being able to really identify customer needs and propose the most appropriate solution to implement within schedule and within budget, while ensuring the highest levels of quality and safety.
What services does the company offer to clients?
NetU offers specialized solutions and IT services for medium and large organizations in both the private and the public
sector. In the private sector, NetU is a leader, having implemented projects for multinational and local companies in industries such as Shipping, Insurance, Automotive, Hospitality, Wholesale Distribution and others. In the public sector, NetU is one of the main suppliers of integrated solutions for the Government and the wider public sector. It has also implemented systems for other governments, such as those of Greece and Croatia. Our solutions and services are divided into four categories: 1. Business Solutions: We implement internationally renowned horizontal and vertical business applications such as Enterprise Resource Planning (ERP), Financial Management (FMS), Customer Relationship Management (CRM), and Human Resource Management (HCM). These applications are based on business solutions from leading business software vendors such as Oracle NetSuite, Salesforce, Incadea and Infor. 2. Technological Solutions: We offer state-of-the-art technology solutions utilizing products from major technology manufacturers such as Oracle, Microsoft, Red Hat, ESRI, Hewlett Packard Enterprise, Cisco and others. 3. Professional Services: We provide a wide range of specialized IT services including project management, software development, implementation, consulting services, technical services, training, maintenance and support. 4. Systems Integration: We offer complete solutions, covering all of an organization’s IT needs by combining Professional Services with Business and / or Technology Solutions.
How do your clients benefit from these services?
Our clients benefit from the consultative approach that we adopt to implement our solutions, by applying proven methodologies to ensure success. This approach leads to continuous optimization, which translates into faster delivery, lower costs and increased productivity. Furthermore, to ensure that our clients can maximize the value of their investment, NetU provides comprehensive maintenance and support services for all the solutions we offer. Through a permanently staffed helpdesk, we reassure our customers that our commitment to them does not end when their system goes live. Our services include expert technical assistance and advice, problem solving and monitoring, operational health checks, trainings and on-site visits. The close relationship with our industry partners provides us with online access to knowledge databases and to a dedicated pool of support consultants overseas, to quickly and efficiently resolve any problems. Our experience, flexibility and responsiveness assure our clients that they can rely on us not just when solutions are first implemented but throughout their system’s lifetime. Last but not least, NetU places great emphasis on quality and has developed a Quality Assurance methodology based on proven methodologies, standards and best practices to ensure the provision of advanced technological solutions of the highest quality. Our commitment to quality is evidenced by the fact that all our activities have been certified to meet the requirements of ISO 9001: 2015. NetU is also ISO 27001: 2013 certified, ensuring the highest level of security and protection of sensitive customer information.
How important is it for businesses to make the necessary digital transformation and invest in modern technology?
Organisations have no choice but to digitally transform. The aim of Digital Transformation is to use technology to transform a service into something significantly better. The evidence for companies leveraging digital technology to advance their business strategy shows many expected benefits, such as reduced costs, improved customer satisfaction, consolidated operations, better analytics and increased agility and innovation. With Digital Transformation taking place in every field, it is crucial for organizations to invest in new technologies that will help them follow the rapid growth of the market and satisfy their customers at every step of the journey. Business models are expected to change in the next years, driven by digital disruption and the need to get closer to the consumer. Therefore, digital transformation will become a continuous journey to stay competitive rather than a one-off project.
What are the new trends in the area of IT that businesses should be looking out for?
The future of every Cypriot business lies in its ability to utilise technology to transform the customer value equation and drive its competitive advantage. Artificial Intelligence and the Cloud are the two main technologies that are expected to have the most significant transformational impact on every business by 2020. Although the Cloud industry has matured rapidly during the past decade, it is one that’s constantly evolving and innovating. Cloud industry leaders such as Salesforce and Oracle NetSuite use their advancements in technology to focus on innovation, bringing new features and functionalities that are capable of changing an organization’s productivity and efficiency, and, ultimately, driving the customer experience. Combined with AI, Cloud computing can not only change the way businesses operate but it can also innovate in the way customers interact with them and vice-versa.
How do you view the future of the digital business and what role is NetU playing in that future?
NetU recognises that the future of enterprise software is in the Cloud. For this reason, we have entered into agreements with leading Cloud application providers such as Salesforce and Oracle NetSuite, offering customers a full range of Cloud applications such as ERP, CRM, HCM, Financial Management, e-Commerce, etc. to meet their unique and highly demanding needs. Cloud applications reduce implementation time, increase efficiency, help improve cash flow and offer the flexibility, cooperation and security that every Cypriot business needs. Salesforce is recognized as the top customer relationship management solution (CRM) and is used by more than 100,000 organizations. Oracle NetSuite is a leading provider of enterprise resource management (ERP) and financial management Cloud solutions. It is considered to be the most rapidly evolving Cloud ERP solution and is used by more than 40,000 organizations. NetU’s expertise in Cloud solutions has recently been acknowledged by CIOReview magazine, and our company was named as one of the 20 most promising Oracle NetSuite solutions providers worldwide for 2019.
What are NetU’s plans for the next 3-4 years?
For the next few years we have a strong commitment to lead the way in Cloud applications adoption, aiming to become a regional solution provider. At the same time, we will engage in all necessary activities towards strengthening our longtime expertise in large-scale integration projects in the public sector and exporting this expertise to other countries. We intend to further establish our position as a leading and recognized IT solution provider in Cyprus and abroad. NetU plans to be a leading contributor to digital transformation by helping organizations distinguish themselves among the competition in this way.
IASB proposes to update Conceptual Framework reference in IFRS 3
The International Accounting Standards Board has published for public consultation proposed narrow-scope amendments to IFRS 3 Business Combinations. The amendments would update a reference to the Conceptual Framework for Financial Reporting without changing the accounting requirements for business combinations. IFRS 3 specifies how a company should account for the assets and liabilities it acquires when it obtains control of a business. It refers companies to the Board’s Conceptual Framework to determine what constitutes an asset or a liability. IFRS 3 refers to an old version of the Conceptual Framework. The Board proposes to update IFRS 3 so it refers instead to the latest version, issued in March 2018. Updating the reference without making any other changes to IFRS 3 could change the accounting requirements for business combinations because the liability definition in the 2018 Conceptual Framework is broader than that in previous versions. Companies would need to record provisions and contingent liabilities when they acquire a business they would not record in other circumstances. To avoid this, the Board also proposes that for provisions and contingent liabilities, companies refer to IAS 37 Provisions, Contingent Liabilities and Contingent Assets instead of the Conceptual Framework to determine what constitutes a liability. This change is proposed to stand until the Board decides whether and how to amend IAS 37 to align it with the 2018 Conceptual Framework.
Annual improvements to IFRS Standards Proposed
The International Accounting Standards Board has also published proposed narrow-scope amendments to four IFRS Standards as part of its maintenance and improvements of the Standards. Annual improvements are limited to changes that either clarify the wording in an IFRS Standard or correct relatively minor unintended consequences, oversights or conflicts between requirements in the Standards. Matters dealt with through annual improvements often arise from questions submitted to the IFRS Interpretations Committee. The four proposed amendments included in this year’s annual improvements consultation document are:
Standard
IFRS 1 First-time Adoption of International Financial Reporting Standards Simplify the application of IFRS 1 by a subsidiary that becomes a first-time adopter of IFRS Standards after its parent company has already adopted them. The proposed amendment relates to the measurement of cumulative translation differences.
IFRS 9 Financial Instruments Clarify the fees a company includes in assessing the terms of a new or modified financial liability to determine whether to derecognise a financial liability.
Proposed amendment
Illustrative Examples
accompanying IFRS 16 Leases Remove the potential for confusion regarding lease incentives by amending an Illustrative Example accompanying IFRS 16.
IAS 41 Agriculture Align the fair value measurement requirements in IAS 41 with those in other IFRS Standards.
