The bISME issue 1, 2018

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1 Issue 1 SUMMER 2018 Volume

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STRENGTH IN NUMBERS Employment Disability Information (EDI) launch Employer Peer Network

UP IN THE AIR? Irish Vendors Vaping Association (IVVA) calls for regulatory framework for the vaping sector

5 STEPS TO SUCCESSFUL SUCCESSION Succession planning for business

OVERCOMING HR CHALLENGES How to address the challenges SMEs face when dealing with HR and recruitment

Ginaissance Man Patrick J. Rigney talks about building brands and why Ireland could lead the global gin market

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Volume 1 Issue 1 Summer 2018

17 Kildare Street, Dublin 2, Ireland.

Phone : (01) 662 2755 E-mail: info@isme.ie Web: isme.ie

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Tel: +353 1 709 6900 Email: info@ifpmedia.com Web: www.ifpmedia.com Editor: Bernard Potter Design: Ciarán Brougham Advertising: Bryan Beasley Chief Executive: Rebecca Markey Accounts: Tricia Murtagh Administration: Sue Nolan

A Message from the Chief 04 Executive Neil McDonnell discusses the key issues facing SMEs.

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The bISME is the official publication of ISME. Individual views expressed in the magazine do not necessarily constitute ISME policy.

Although every precaution has been taken in the preparation of this publication, the publishers assume no responsibility for errors or omissions.

Copyright The bISME 2018. No part of this publication may be reproduced in any material form without the express written permission of ISME.

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The b News The latest news on the SME sector and the wider economy.

The Big Interview:

Patrick J. Rigney “The challenge of setting up The Shed Distillery was not for the faint-hearted.”

Founder Pat Rigney shares his insights on developing a business to create superpremium Irish brands.

ISME: At work for you Read about ISME training and lobbying activity.

The b Insight: Up in the air?

A call for vaping regulation.

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HR Focus: Overcoming HR Challenges Niamh Heneghan, ISME HR Advisor, writes about the challenges SMEs face when dealing with HR and recruitment.

The b Issue: 5 Steps to Successful Succession Succession planning for business.

Employer Disability Information: Strength in Numbers Read about the Employment Disability Information (EDI) WorkABLE Future event and Employer Peer Network.

Another side of…

Michael O’Flanagan, ISME Research Officer, talks about his love of running and how it clears his mind.

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Published by IFP Media Castlecourt, Monkstown Farm, Glenageary, Co. Dublin, A96 T924

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A Message from the Chief Executive

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MORE GAINS IN REGIONAL EMPLOYMENT POSSIBLE – MINISTER HUMPHREYS

A Message from the Chief Executive

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TWO-TIER ECONOMIC REVIVAL

Many of you will be looking at the press reporting of our improving economy and wondering what you’re doing wrong in your business – why isn’t all this success flowing to your bottom line? You’re not alone. We are definitely witnessing the emergence of a two-tier economic revival. Big business, foreign multinationals, commercial semi-states unburdened by meaningful competition; all are basking in a benign environment of low tax, low interest rates and improving markets.

But SMEs involved in competitive sectors such as retail, distribution, construction and hospitality, particularly those with 50 or fewer employees, are seeing ever more intense competition, with an increasing cost base, and no real opportunity to pass on cost inflation to their customers. This is especially true for those competing in the sterling zone.

While Budget 2019 is six months away, the hard graft of getting our message across to Government will take place over the next two months or so. Key parts of the Government fiscal agenda will be set by the civil service before they head away on summer holidays.

So we need to act now, and lobby our ministers and TDs intensively over the next eight to 12 weeks. We will be asking you for your help in this regard.

One good, clear message that is emerging from all the social and business media reportage is that our policy agenda is right, and what we have been saying about the Irish economy is true. Ireland’s diverse group of economists, the OECD, and the EU Commission are remarkably consistent in their observations about the Irish economy, where it’s going wrong, and where it needs to go.

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On February 9th, we issued a press release highlighting our disappointment that the Cost of Insurance Working Group Report (CIWG), published on on January 25th, came up short when considering capping awards in the Book of Quantum. For our full response, please click here.

GDPR COMPLIANCE Neil McDonnell, Chief Executive, ISME INDIGENOUS BUSINESS POLICY

Government remains fixated on the foreign multinational sector as the ‘anchor tenant’ of our industrial policy. We urgently need to develop a logical, cogent policy for indigenous business that is based around our SME sector.

We need to understand why productivity among indigenous businesses is static, or in some cases, falling. We know that the state is investing hugely in third level education; it is not investing in vocational or life-long learning to the extent it must. We know that education is one of the keys to businesses that are capable of growth and scale. That is why ISME runs one of the largest Skillnets in the country and why businesses need to consider upskilling employees.

Despite all, ISME, like its membership, remains an optimistic association, full of hope for the future.

In this, the 25th year since our foundation, we look forward to what the next 25 years will bring. We’re going to do a little crystal-ball gazing at our Annual Conference on November 21st to see what the year 2043 will look like for SMEs. You can register your interest in attending, exhibiting or finding out more by clicking here.

Minister of State for Trade, Employment, Business, EU Digital Single Market and Data Protection, Pat Breen; Minister for Business, Enterprise and Innovation, Heather Humphrey; and Julie Sinnamon, CEO, Enterprise Ireland.

The Minister for Business, Enterprise and Innovation, Heather Humphreys recently announced that she would be making a further €30 million available through a Second Call for Proposals under the Regional Enterprise Development Fund (REDF).

The Fund will now operate on a rolling basis through the National Development Plan. It is administered for Minister Humphreys’ Department by the State Agency, Enterprise Ireland.

The Minister commented: “I look forward to seeing many more exciting, innovative initiatives to drive employment creation in our regions. Under this Fund, each region will secure a minimum of €2 million once projects meet the required standard. There is an opportunity here for regional stakeholders, both public and private sector, to work together and bring forward initiatives that build on each region’s unique strengths. This is all with a view to enhancing the enterprise and job creation potential in their region.”

The announcement was made by Minister Humphreys at

We hope to see you there.

Farmleigh House, Dublin where she met with the Chairpersons and representatives from the Regional Action Plan for Jobs Implementation Committees to discuss new priority initiatives

Neil McDonnell Chief Executive, ISME

for the Regional Action Plans over the period to 2020.

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ISME will be contacting members and database subscribers in the coming weeks in order to update our records and to ensure that we are GDPRcompliant. Therefore, in order for you to receive emails, get news and information including ISME publications, we will be asking you to select (via a tick box) the type(s) of data you would like to receive. Please note that if you do not opt-in, you will not receive any more correspondence from ISME.

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EXPLORING ALTERNATIVE FUNDING SOURCES InterTradeIreland are running free regional funding workshops to help companies who are ready to expand, explore opportunities presented by alternative sources of funding.

The workshops being run jointly by InterTradeIreland and Grant Thornton are aimed at established businesses with a turnover in excess of €100,000 and have been trading longer than 18 months. Full details of all the workshops can be found on InterTradeIreland’s website, click here.

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Welcome to The bISME, our newest publication, one where we can take a longer look at the issues that matter to you and your business. It’s also an area where we will invite editorial from readers, be they members or non-members. Many of you have expressed the wish to do more than simply advertise to ISME members, you want to tell your story. Here is your opportunity and your platform.

INSURANCE REPORT FALLS SHORT

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Digitisation, through the leveraging of digital tools and technologies, is having a profound effect on how business is done. The Innovation Value Institute (IVI) at Maynooth University, Ulster University, and Anglia Ruskin University, England, are undertaking research on the extent of digitisation through IT within SMEs. The research will be carried out up until the end of May 2018. They invite SME owner/managers to complete the following online survey to provide them with key insights in this area. To complete the survey, please click here.

IVI would be happy to share the key findings of this research. For further information please email: Eileen.doherty@mu.ie

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THE ALLIANCE FOR INSURANCE REFORM The Alliance for Insurance Reform brings together 18 civic and business organisations from across Ireland, representing 34,622 members with 628,150 employees and 41,300 volunteers to demand action to end crippling insurance premiums. It is a response to countless stories from small organisations and businesses where services and jobs are being damaged by excessive insurance costs.

The Alliance acts as the voice for the interests of the policyholder who always comes at the bottom of the list after insurers and the legal profession and other vested interests.

ISME, as a member of the Alliance for Insurance Reform, is actively supporting the current campaigns underway in reducing insurance premiums.

Feedback from our members show us that insurance is a big issue, with increases in excess of over 30 per cent reported. These increases have a significant impact on small businesses.

You can support the Alliance actively on their Twitter or Facebook page.

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THE ISME ANNUAL LUNCH

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WORKSHOP ON SELLING TO GOVERNMENT A breakfast briefing providing tips and advice on public procurement will take place on Wednesday, September 26th, at Menlo Park Hotel, Galway. Entry is free.

InterTradeIreland, in partnership with the Office of Government Procurement, Enterprise Ireland, ISME, Ibec, SFA, CIF and Chambers Ireland, is delighted to deliver the first of a series of breakfast workshops to demystify, educate and engage businesses in relation to public procurement, a market worth in the region of €12 billion per annum.

ISME National Council Member, Ross McCarthy, from Keystone Procurement will be speaking at the briefing. These briefings are aimed at micro-businesses and SMEs who are new to public procurement or those who wish to update their market knowledge. They are also an opportunity to network with likeminded businesses. Registration will be open from 7:30am and refreshments will be served.

To find out more and to register, click here.

Last year’s ISME Annual Lunch was one of 2017’s key networking events for SMEs. This year’s ISME Annual Lunch takes place on Friday, May 25th.

GRANTS CAN HELP BUSINESSES SAVE 30% ON ENERGY COSTS

The ISME Annual Lunch takes place on Friday, May 25th at the Hogan Mezzanine Suite in Croke Park, Dublin. The lunch offers an unrivalled opportunity to meet and network with your peers in the SME sector.

This year’s guest of honour is Patrick J. Rigney, The Shed Distillery, who will speak at the event. Pat is a serial entrepreneur with a strong track record in the food and drinks sector and more recently in pharmaceuticals, tourism and equestrian. He is the founder of The Shed Distillery and the creator of super-premium Irish drinks brands including Drumshanbo Gunpowder Irish Gin and, more recently, Sausage Tree Pure Irish Vodka (launched March 18th, 2018).

Read an interview with Pat on page 10.

To get a flavour of what you can expect this year, view last year’s Annual Lunch here.

To book your tickets, click here.

ISME ANNUAL CONFERENCE SET FOR NOVEMBER The ISME Annual Conference will take place on Wednesday, November 21st, at the City West Hotel, Dublin. This year, ISME will be celebrating 25 years and to mark this, we are theming the conference around what it will look like for SMEs in Ireland in the next 25 years and remembering how far we’ve come since 1993.

Booking will open soon but if you are interested in more information, particularly in relation to exhibiting at the event, click here.

Ross McCarthy, Keystone Procurement.

Projects that implement the EXEED process can save up to 30 per cent in energy use.

The Sustainable Energy Authority of Ireland (SEAI) is now accepting applications from organisations planning an investment in a new design project or major energy upgrade. The Minister for Communications, Climate Action and Environment Denis Naughten, secured an allocation of €10 million in Budget 2018 for the Excellence in Energy Efficient Design (EXEED)

programme. Projects that implement the EXEED process can save up to 30 per cent in energy use and save on capital expenditure for new investments, according to Jim Ganof SEAI. The €10 million allocation will be used to support EXEED projects delivering new best practices in the design, construction and management of buildings and facilities for optimum energy performance. The SEAI EXEED grant will provide support of up to €500,000 per year to successful organisations. The grant is open to all public and private organisations who are planning an investment project of any scale or complexity.

Last year, SEAI invested €1.6 million in EXEED projects ranging from educational facilities, to pharmaceutical companies to public buildings. For example, The Monasterboice Inn, a restaurant and venue near Drogheda, constructed a new conference centre extension and dramatically upgraded the energy efficiency of their restaurant. They installed highgrade insulation throughout the building and smart lighting in their conference rooms and car park.

They designed the new conference centre to maximise natural daylight and provide an attractive bright space.

Renewable energy heat pumps, one of which extracted energy from an on-site stream, replaced old gas boilers, providing heating and cooling to the building. Hot air is extracted from the kitchen and harnessed to heat the water. As a result, they expect to reduce energy consumption by 45 per cent, improving profitability, and lowering carbon emissions. The payback on this project is expected to be three and a half years.

For further information click here.

You can view what happened last year here.

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SMEs AND DIGITISATION

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THE EU CRAFT AND SME BAROMETER 2018/H1 ISME’s European partners UEAPME (the umbrella organisation for SMEs in Europe), recently published the results of its latest SME barometer index. This was a joint publication between member states, including Ireland. ISME provided the latest data on SME confidence in Ireland. The UEAPME SME Business Climate Index which consists of the shares of European craft, small and medium-sized enterprises reporting stable and positive business situations and expectations, has now reached 81.6 percentage points, rising by 1.4 ppts compared to the previous semester. The optimistic outlook of SMEs towards the current economic environment reflects the positive trend in domestic demand, which stands as the main engine for growth. At European level many hard economic indicators, such as the GDP growth rate and the unemployment rate, show significant improvements, which are backed by a strong momentum in the global economy.

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STRONG GROWTH SET TO CONTINUE IN 2018 In 2018, GDP is expected to grow by 4.8 per cent, according to the latest ESRI economic forecast. GDP is expected to grow by 3.9 per cent in 2019 based on a technical assumption that a European Economic Agreement (EEA) is in place between the UK and the EU. Strong domestic consumption and investment, along with improving international conditions, are the main factors underpinning this growth projection.

Unemployment averaged 6.7 per cent in 2017 and is expected to decline to 5.4 per cent in 2018 and 4.5 per cent in 2019. Increased tax revenue will lead to budget surpluses in 2018 and 2019, the ESRI predict.

It remains difficult to produce accurate estimates of sustainable economic growth based on the current set of national accounts, the ESRI says. Estimates of overall output growth, as well as major components of growth such as investment and trade, are influenced by large transactions of a select number of firms. It is important to continue developing new approaches that allow for estimates of growth that are more representative of activity in the real economy.

This is particularly pressing at present as the economy is growing at such a robust rate. Policymakers need to be able to accurately gauge when the economy is likely to encounter capacity constraints.

The ESRI report includes a Special Article examining how Brexit will impact the cost of living in Ireland. It finds trade tariffs could lead to an increased cost of living of between €892 and €1,360 per household per annum. Poorer households will be most affected as they spend a greater share of their expenditure on food products, which are likely to be imported from the UK.

CODEX: A GREAT PLACE TO WORK IN 2018!

For more information go to www.ueapme.com

Codex staff participating in ISME Skillnet Sales training in March.

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RECENT REPORTS HIGHLIGHT IRELAND’S WOES Two recent reports from the OECD and the European Commission highlight Ireland’s current macro-economic problems.

Both reports highlight concerns for Ireland regarding taxation, competitiveness and access to finance.

For more information click here.

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For a second year in a row, ISME Member, Codex Office Solutions has been listed as one of Ireland’s great places to work. This award is determined based on the result of an employee survey and assessment of a company’s policies and practices. This year Codex have jumped up four places from 18th in 2017 to 14th in the Best Small Workplaces category.

Codex prides itself on being a safe productive environment and the company believes that work can also have its fun moments.

To celebrate the success of being a great place to work, all the Codex staff were treated to breakfast and lunch. Codex’s drivers were thrilled to have a full Irish breakfast in the Codex café at dawn, provided by Taste Catering, a hearty reward for being the company’s early risers!

Siobhan O’Connor, Managing Director, Codex Office Solutions commented: “Our staff are a vital part of what makes us who we are, and we believe that if you want a great company you need great staff. A comfortable and safe environment is an absolute must if you want to have a productive happy workforce. Investing in the training and education of our workers is one of the keys to our success, this shows in our staff’s excellent relationship with our customers.”

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As the driving force behind numerous Irish branded drink success stories, such as Sheridan’s Irish Cream Liqueur and Boru Vodka, Patrick J. Rigney was well-placed to set up his own distillery where innovation and risk-taking would be encouraged in order “to create super-premium Irish brands”. But the challenge of making The Shed Distillery a reality, as he explains, was not for the faint-hearted.

A. The drinks industry was one of the most vibrant and exciting industries in the 1980s. I wanted the type of fast-paced opportunity it offered to get stuck in, work hard and learn quickly.

There was so much happening in the sector as Ireland developed the export market and Baileys was the company where I could seize this opportunity. I joined the dynamic international team, developing the world’s number one selling liqueur brand during its formative years, managing the Baileys’ business in the Americas and Australasia.

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The vision was always to create super-premium Irish brands by hand, in small batches, using the finest botanicals and ingredients inspired by my travels across the world.

During my time with Baileys I had the opportunity to develop a new Irish brand. I was always curious about the journey behind brands, from the sourcing and creation of the recipe, to understanding the target markets and consumer demand in different regions.

And, then, making sure that the brand would stand out – the design, the bottle shape, the packaging, the final product. My idea was to create a new Irish cream liqueur presented in two separate bottles, so the consumer could enjoy it extremely fresh and immerse themselves in the whole experience, and so Sheridan’s Irish Cream Liqueur was born. The concept worked and it remains one of Ireland’s most successful export brands.

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You have been at the forefront of the branded drinks sector for over 30 years, what major business challenges have you overcome?

Creating new brands is always a major challenge, especially when you are out on your own. In a highly competitive sector, the risks are many and there is a lot at stake in terms of investment, reputation and responsibility. I had to keep focused, always follow my vision and not fall into the trap of giving oxygen to doubt. The bigger the potential of a brand, the bigger the investment and other challenges.

Tell us about The Shed Distillery and how it came to fruition?

Developing exciting new brands was energizing and drew on so many different skills. I had developed over 30 brands, including Boru Irish Vodka, from the initial concept right up to the final product that would appear on shelf. I had known for a long time that the dream was to build my own distillery, but I was determined not to rush it.

I wanted to find the perfect location in the heart of rural Ireland where I could take inspiration from nature and the countryside and experiment freely.

The vision was always to create super-premium Irish brands by hand, in small batches, using the finest botanicals and ingredients inspired by my travels across the world. I wanted a location where I could constantly innovate and take risks, in the hope that we could create some truly extraordinary brands.

The Shed Distillery of PJ Rigney marks a return to traditional distillation using gleaming medieval copper pot stills and is the first multi-purpose distillery of its kind in Ireland. Founded on Winter Solstice 2014, it is the first distillery in Connacht in over 101 years. It is situated in the wild, unspoiled surrounds of the small village of Drumshanbo, Co. Leitrim.

The local community was fundamental to the decision to build The Shed in Drumshanbo. The moment I arrived in Drumshanbo, I knew it was the ideal location and the response from the people there consolidated my gut feeling. Father and son team, Noel and Fergal McPartland from the local Community Council made

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the process very simple for us. They saw that I was committed to partnering with, and supporting, the local community and creating jobs at The Shed Distillery.

The local area had suffered economically following the closure of major businesses in the area with the resulting loss of hundreds of jobs.

That was quite devastating for a village with a population of just over 800 people.

In 2014, The Shed Distillery started with just two employees. Now there are already 18 employees, and with the launch of our new premium Irish vodka, the new visitor experience and plans to release the first premier, grand cru whiskey, the workforce will grow to 40 by next year. The team has been trained in the rare art of handdistillation and every bottle of Drumshanbo Gunpowder Irish Gin is bottled, sealed and labelled by hand at The Shed Distillery.

An Irish gin was always intended to be one of our first brands. Endless ideas and recipes had been milling around in my mind for a number of years. On travels to China, Cambodia, Indonesia, Africa and Europe, I had picked up some very unique botanicals and I had been experimenting with the different blends and flavours. So, once The Shed was built, I knew we would start developing the initial concepts very quickly.

Drumshanbo Gunpowder Irish Gin is slowdistilled by hand in a gleaming medieval copper pot still fired by steam; the method combines vapour distillation of fresh citrus fruits with a special selection of oriental botanicals, including spiced gunpowder tea and local Drumshanbo meadow sweet.

The growth of gin is a significant international market trend at the moment, why is this and is it sustainable? What other trends do you see occurring in this sector in the next five years?

Now is a really exciting time for gin worldwide. The category has long been under-developed but new generations have embraced the untapped potential of gin.

Now is a really exciting time for gin worldwide. The category has long been under-developed but new generations have embraced the untapped potential of gin. The educated, well-travelled millennials are leading the ‘ginaissance’, but they demand authenticity and real substance, they will very quickly recognise a fake.

The market is sustainable for the genuine operators, but this is a seriously competitive industry. Knowledge, route to market and serious longterm commitment to consistent, highquality standards are the minimum requirements. These will be the key factors in determining which brands survive in this extremely competitive

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Distilled wisdom Q. When and why did you decide that the drinks sector was where you wanted to pursue your career?

The Big Interview Category

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The Big Interview

Patrick J. Rigney, the driving force behind The Shed Distillery.

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Passion, planning and people are the three ‘Ps’ to which many business owners attribute their success.

Would you agree?

People are fundamental to the business. It’s one of the first things I look at when we are meeting potential partners or employees. Are they like-minded? Do they have the right attitude? The right attitude and passion is powerful. You can have many types of qualification but unless you have the right energy and attitude, and a willingness to get stuck in, they mean very little.

What can we expect from The Shed Distillery over the next three years?

We have had a tremendous reaction to Drumshanbo Gunpowder Irish Gin, our first brand, which launched less than two years ago. In both 2016 and 2017, we were declared Ireland’s best gin by public vote at the Great Irish Beverages National Gin and Tonic festival.

Drusmhanbo Gunpowder Irish Gin will remain a core focus for the company as we grow and develop other new brands. We are extremely excited about what will happen next. We have very quickly seen that nothing is impossible at The Shed.

We have just launched a super-premium Irish vodka brand – Sausage Tree Pure Irish Vodka. Our first premier grand cru whiskey will come on stream very soon and we have recently received planning permission for an exciting new visitor experience development at The Shed Distillery.

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Co-founders Patrick and Denise Rigney pictured in The Shed Distillery.

market. It is not a sector in which to make a quick, overnight buck. The investment and time required to build brands that will survive is significant and the return on investment can take decades.

support of Government and statutory partners.

Export growth will support job creation throughout Ireland and help deliver on the Government’s FoodWise 2025 targets.

Ireland can be a leader in the premium gin market, but it is crucial that we maintain the highest standards to enhance and protect our reputation. As Chair of the Irish Gin Working Group, which is part of the Irish Spirits Association headed by William Lavelle, I want to help develop world-leading standards for quality and authenticity in Irish gin. The Irish Spirits Association has just launched an Irish gin strategy with one of its goals being to protect standards and support the creation of a legally-recognised standard for Irish gin.

Do you have a business mentor? What business advice was crucial to your success and what three important pieces of advice would you impart to an SME in today’s competitive climate?

The Irish gin industry is ambitious, and our ambitions are increasingly global. Irish gin is already regarded as a world-leader in terms of quality and authenticity. As sales begin to increase at home and abroad, we want to ensure that we can take advantage of this positive growth trajectory by developing world-leading, consumer-focused standards, building on Ireland’s reputation for great food and drink. Export-growth is vital, and we have identified five priority international markets that we wish to target for growth with the

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I am selective about who I work with – I need to enjoy working with them, respect and trust them. People with the right energy and passion immediately stand out to me and there is a gravitational pull on both sides, which often leads to us working together.

It may be directly, as part of my team, or through collaborations.

These are people who I trust implicitly and whose insight and perspective I particularly value. Paul Adamson, a high-profile business speaker and consultant based in the UK, is a long-time personal friend – hard-working, passionate and loyal. For me, these are the qualities that bring the greatest insights into business, and people like Paul, my business partner John Dillon, the Managing Director of Dalcassian Wines and Spirits, and each member of my team are my ‘informal’ mentors.

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As well as a visitor journey through the process of slow-distilling premier grand cru whiskeys and smallbatch gin, vodka and new liqueurs, the new visitor experience will also feature a café, a botanical glasshouse and a herb garden.

bring something of value to the event. There are a lot of ISME business members who I look at in admiration and have been very impressed by when I attended their talks, so I have high standards to live up to in May! How has being a member of ISME helped your business?

ISME is fundamental to representing SMEs, especially in terms of lobbying and promoting our interests. By their very nature, SMEs do not have the full menu of departments and teams to respond to policy and legislation changes and challenges. ISME is our voice and also a motivator, keeping us on track and connecting us with like-minded businesses, while also providing forums in which to share learnings.

Small and medium enterprises are the lifeblood of the Irish economy and, as all SME owners know only too well, there’s no fairy godmother who pays salaries or draws the customers to your brand. Unlike the elusive Jackalope, Drumshanbo Gunpowder Irish Gin was not conceived in a lightning storm in a singular flash of inspiration. The reality is, it is a combination of long hours, risk-taking and an unwavering belief in the face of constant circling forces that threaten derailment, which keeps you driving forward. It is not for the faint-hearted.

Pat is the guest speaker at the ISME Annual Lunch on Friday, May 25th, in Croke Park.

To book, click here.

The Shed is a venue for constant experimentation and recipe ideas in relation to slow-distilled, superpremium gins, vodkas, hand-crafted Irish pot still and single malt whiskey and new liqueurs. To truly succeed in taking the road less travelled, we couldn’t limit The Shed to just one spirit type.

There are so many intriguing botanicals and ingredients from across the world, with so much potential to break new ground and discover and develop new brands, the like of which have never been seen before. If you impose limits, it limits creativity and, in a market where the consumer is consistently looking for new, authentic brands with substance, there has to be the space and facility to experiment in different ways and styles.

How do you feel about being the guest speaker at the ISME Annual Lunch in May? Honoured. I love what I do and it is so rewarding to see ideas and visions reach fruition. I am quite humbled when I see consumers embrace a brand that I have created. This never goes away and I never take it for granted. We are always listening to the consumer and taking their feedback on board, which is crucial to staying ahead.

When you get a call from a high-profile business organisation like ISME asking you to share your story it is humbling, and I only hope that I can

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Patrick and Denise Rigney pouring a shot of Sausage Tree Pure Irish Vodka.

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The Big Interview

Training: Successful Business Writing and Email Etiquette May 9th Training: Recruitment Skills for SMEs May 16th ISME Annual Lunch Friday, May 25th Croke Park, Dublin

ISME SKILLNET TRAINING UPDATE

ISME: THE VOICE OF IRISH SMEs

As we close Q1 2018, the ISME Skillnet has already trained 200 SME employees and business owners. We are always keen to hear from the SME community about the training that is critical to the continued development of the SME workforce and, most importantly, the growth of your businesses.

Please email your expressions of interest in relation to any training needs to adam@isme.ie

Essential Management Skills Programme Launch with Hickey’s Pharmacies This fifth group of managers are now taking part in this QQI Level 6 Essential Management Skills Programme. Hickey’s is continuously providing this management course to its leaders across the business to further develop its team through professional training and development.

ISME Skillnet will be offering this eight-module programme to all our members in the near future. Please contact Adam on adam@isme.ie to express your interest and for more information.

Training: Cold Calling & Appointment Making May 31st

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ISME Annual Conference Wednesday, November 21st City West Hotel, Dublin

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ISME is the only national body representing small and medium-sized enterprises that is independent of Government, banks and big business. This independence allows the Association to give an honest and candid account of the SME sector to policy makers. As a membership-based organisation, your concerns, business issues, and challenges as an SME owner or manager matter greatly to ISME. An important part of the Association’s work is to communicate and connect regularly with members through various surveys. The data received from respondents is vital to our lobbying and to ensure effective representation of Irish SMEs at local, national and European level.

Many of these surveys feature on local and national news outlets.

The influence of ISME, with its presence at local, national, and European level can be seen by the number of forums in which the Association participates. As the only independent voice for SMEs

on advisory groups including the Brexit Global Challenges Forum; the Advisory Group of Small Businesses; the National Retail Theft Forum; the Town Centre Revitalisation Group; the Hidden Economy Monitoring Group; and many more, ISME brings a unique voice to the table.

Membership of these groups allows ISME to directly influence and guide government policy on the issues impacting SMEs. Our representations and lobbying are not solely confined to Ireland. As members of UEAPME (the umbrella body for SMEs in Europe), our influence and research publications reach the highest channels of European affairs. The data taken from our survey feeds into biannual reports from UEAPME, which, in turn, is presented to various bodies in the European Union. Along with this, the Association sits on several steering committees at a European level.

As a key driver of SME policy in Ireland, the Association takes great pride in achieving results

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for members from the information collected. So while we appreciate that surveys and questionnaires can be time-consuming, we ask you to bear in mind how important they are in policy formation.

Lastly, we are always grateful to those of you who are willing to tell your story directly to the media. This is really important for journalists, as well as helping us to get the broader message across. People want to hear the unvarnished truth ‘from the horse’s mouth’. To those of you happy to face the press, many thanks.

You can contact us on info@isme.ie

Training for Q2

Training: Customer Service and Complaints Handling June 11th Selling to Government Introduction Breakfast Briefing Wednesday, September 26th Menlo Park Hotel, Galway

ISME – At work for you

We are hosting a number of training events which will include: best practice sales programmes; recruitment skills focusing on a strategy to tackle the war on talent; supervisory skills; and advanced project management.

Keep an eye on the training schedule by clicking here.

Since February, we have hosted six GDPR events in Dublin, Limerick, Cork, Kilkenny.

There will be more events to cover this important new EU regulation and, if this interests you, please contact adam@isme.ie

Participants in Hickey’s Pharmacies QQI Level 6 Essential Management Skills Programme 2018.

Finally, to tackle the geographical issue of providing training across the country, we have commenced identifying and talking to Learning Management System providers, exploring opportunities to bring certain types of training to your doorstep.

RE-INNOVATE PROJECT LAUNCHED IN JANUARY ISME is partnering in a new EU supported Erasmus+ Project which launched in January 2018 and will run to mid 2020. The overall aim of the Project is to develop practice-oriented research to strengthen the innovation capacity of SMEs. The Re-innovate Project is coordinated by the University of Limerick with partners in five European countries.

The main outputs of the project will include: the development of teaching methods; curriculum; and accreditation for a programme that is aimed at developing the research skills of SMEs through ICT enabled collaboration, learning and innovation. The programme will be pilot tested among SME employees in the five European countries, including Ireland.

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GDPR Essentials for SMES in Dublin, February 21st.

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BRINGING TEAMS TOGETHER The Teammate project has developed an online 360 assessment tool for managers of remote teams. The online assessment tool is currently being piloted by managers in SMEs. ISME can now provide these assessments and feedback. So, if you manage remotely, or any of your colleagues are managing remote teams, and you are interested in finding out how to strengthen your capabilities in this area, why not contact Sheila Flannery at ISME on sheila@isme.ie

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DATES FOR YOUR DIARY

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ISME – At work for you

bISME

The b Insight

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The b Insight

With growing awareness of the problem of plastic waste, retailers are facing a backlash from customers because the regulations force manufacturers to only supply nicotine-containing liquids used for vaping in 10ml bottles. This means that the average vape shop contributes thousands of extra kilograms of plastic waste annually, but this extra waste is mandated by regulations.

The complexity and contradictory nature of the regulations are causing a lack of clarity in relation to some aspects of the rules, where interpretation by enforcement officers may differ geographically.

The tobacco giants, unhappy with their main revenue stream being threatened, have resorted to their old ways of back-door lobbying, funding groups that aim to generate confusion on the issues.

A constant stream of anti-vaping articles, particularly on online click-bait websites, confuse smokers as to the benefits of switching to vaping. This is seen as a hindrance to smoking cessation in the UK, but here public health and science experts allow the confusion to continue.

The companies that make up the IVVA were some of the first who brought vaping to this country 10 years ago. They themselves had successfully quit smoking by switching to vaping, and at a time when opening a new business was difficult just after the economic crash, they persevered through regulatory uncertainty and have since helped thousands of other Irish smokers become tobaccofree. Worldwide, 90 per cent of the vaping sector is made up of independent SMEs, but opponents of vaping would have the public believe otherwise.

Vaping legislation:

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Up in the air?

Joanne O’Connell, Director, Irish Vape Vendors Association (IVVA), believes the vaping sector needs its own regulatory framework in order to continue to benefit public health and contribute to an economic resurgence in regional towns across the country.

E-cigarettes and their use (known as ‘vaping’) is one of the most important disruptions to have happened in the public health arena in this century. Instead of inhaling the thousands of chemicals and carcinogens found in the byproduct of smoking tobacco, a ‘vaper’ (someone who uses an e-cigarette) is able to get the nicotine they need via a delivery system that is proven to be only a tiny fraction as harmful as smoking.

Evidence shows that, if every smoker were to switch to vaping, considerable costs associated with both the harm of smoking and the cost to our health service in providing prescriptions could be saved and spent elsewhere. Vaping is the market-based,

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consumer-led revolution that we’ve been waiting for, and companies that are independent of the tobacco industry are driving the innovation forward.

Independent vape shops have breathed life back into main streets of regional towns across Ireland.

However, since the introduction of new EU regulations in 2016, IVVA members face unfair competition from businesses that are not doing anything to become compliant with regulations. Giants such as Amazon and eBay continue to allow non-compliant products to be sold to the Irish market. Locally, disreputable companies are willfully ignoring their obligations under the regulations, and contradictions within the regulations themselves mean that consumers can

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Joanne O’Connell, Director, IVVA.

legally buy products from outside of Ireland that Irish retailers are banned from selling.

Restrictions on the tank sizes of the devices mean that Irish vapers are buying from non-compliant businesses here or purchasing online from France - which did not impose the restrictions. Restrictions on advertising mean that IVVA members cannot advertise their products in the way they should be allowed to - to the adult smokers in their local communities.

Independent vaping companies face unfair charges for payment processing. For example, there is an annual surcharge of €500 from Mastercard just because the businesses are related to vaping.

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Vaping needs its own specific regulation, putting consumer safety first and based on actual, not perceived, risks. Public health bodies need to be open with Irish smokers and inform them about the benefits of making the switch to vaping to quit smoking. And government and regulators need to talk to the independent vape industry, learn how our sector works and take on board our concerns – the IVVA’s door is open.

The IVVA states it is the only trade association for the vape industry in Ireland with no ties to the tobacco or pharmaceutical industries. It supports its members and advocates for fair and proportionate regulation for the independent vape industry and is an ISME Affiliate Member.

To find out more about the association, or to become a member, please contact info@ivva.ie

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So, what’s the sensible solution to all of these issues?

One that would see more smokers switch to vaping, public funds saved, and a vibrant and growing independent vape industry flourish?

bISME

HR Focus

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HR Focus

ETHICS HIRING TRAINING

3. Retention and employee turnover

PERFORMANCE HUMAN RESOURCES

CAREER

Going hand-in-hand with attracting talent, even if talent is successfully attracted, budget constraints can make it difficult to retain staff. SMEs often cite an inability to meet the salary standards set by larger organisations as a key reason for staff turnover.

c) Compete on culture, not on price

OVERCOMING THE CHALLENGES

SALARIES SOCIAL

The challenges faced from a HR perspective within an SME setting can seem daunting, however, there are some simple steps that SMEs can take to help overcome some of these challenges. a) Go back to basics If you get the basics right, often the rest will take care of itself. From a HR perspective, the steps listed below should be some of your priorities: (i) Get policies and procedures in place and, if possible, implement an employee handbook for employees to refer to;

DIVERSITY

Overcoming HR challenges in SMEs

than somebody else.

Ensuring your policies and procedures are consistently applied is a vital component in reducing HR issues that arise in the workplace.

(ii) Ensure all your staff have been given a contract of employment; and,

While not all SMEs will have the budget capacity to meet the Niamh Heneghan, salary standards set by HR advisor, ISME. larger organisations, they should be able to compete equally from a ‘cultural’ perspective.

More and more employees are turning away from high basic pay and placing more significance on the company values, meaning and culture to determine their interest in working with an organisation. Taking simple steps to improve employee engagement may be more beneficial than increasing basic pay. d) Get the right help

b) Be consistent

If in doubt, don’t be afraid to ask for help. ISME offers a dedicated HR advice service to ISME members nationwide. Where a HR issue arises, these members have access to a HR advisor who can assist them in dealing with their query in the most effective way.

Consistency is key to avoiding conflict in the workplace.

Nothing provokes a conflict quicker than one person feeling as though they have been treated less favourably

You can get in touch with ISME by calling 01-662 2755 or contacting info@isme.ie

(iii) Review your record-keeping to ensure it is up to scratch.

The SME sector is frequently recognised for the role it plays in strengthening the Irish economy, in particular through its significant contribution to the generation of jobs across all Irish towns and cities. The SME sector has proven itself to be the driving force behind the development of many rural areas and has earned itself the affectionate title of “the backbone of the Irish economy”. However, SMEs also face a number of unique HR challenges that are generally related to their size, writes Niamh Heneghan, HR Advisor, ISME. One of the key challenges that SMEs face is ensuring effective human resource management within their organisation. HR challenges within an SME can stem from a number of areas.

1. Lack of a dedicated HR Manager/Department This is likely to be the most significant HR challenge faced by an SME. Whilst a larger organisation will likely have a full department dedicated to providing HR advice and guidance, an SME will often lack any HR-dedicated staff. Instead, HR responsibilities will fall to individual line managers. This presents two separate challenges: i) The lack of HR knowledge within the workplace can result in difficulties in determining the best

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course of action should an issue arise or, more worryingly, can result in a decision being taken that is contrary to recommended best practice or employment legislation; and,

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ii) The requirement for line managers to deal with HR matters can prove time-consuming and can pull line managers away from their direct responsibilities. This can be draining from both a time and resource perspective.

2. Attracting talent Many SMEs often cite recruitment and, more specifically, the attraction of talent as a key challenge that they face in the current economy.

Often, public awareness of a smaller business may be limited in comparison to the high-profile names of some others.

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E: info@ifpmedia.com W: www.ifpmedia.com CONTENTS

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bISME

The b Issue

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2. Establish a decision-making framework The succession plan should be outlined in writing and communicated to stakeholders and family members.

All stakeholders should be part of the decisionmaking process and a method for dispute resolution should be established to ensure disagreements do not derail the process.

3. Identify successors Specifically identify those within or outside the business that are possible candidates. Develop a programme of training and development to increase the knowledge and skill levels of identified candidates.

4. Consider tax implications Address taxation implications of a sale or transfer of ownership on the business. Valuation of shares in the transaction and gift taxes are important points that need detailed consideration and around which you should get good professional tax advice. Develop a plan to minimise taxes and maximise the capital value of any future sale. Ensure a strong management team is in place to execute the plan.

5. Create a transition plan It can be difficult for parents or other senior family

members who have been intimately involved in the business for decades to make way for the younger generation to take the leadership reins.

Develop a timeline for the implementation of the succession plan. Also, consider the available options, such as retirement, a gift/bequest or an outright sale or a combination of these. It is prudent to have professional advisors to review such planned arrangements for tax and value efficiencies.

Transition options, including gifting and sale to the younger generation or to a third party, should be considered carefully. Compensation and benefit policies can provide consistency and fairness to all concerned.

One of the main reasons many small and familyowned businesses do not survive is the inability of the next generation of owners to grow the company.

The five steps outlined above will provide a solid framework to help you plan for and ensure the continued success of your business long after you have retired to enjoy the benefits of your life’s work.

Smith & Williamson is an independently-owned provider of investment management, accountancy, tax, corporate and financial advisory services to entrepreneurs and their business interests.

Five steps to successful

succession

It is vitally important to start succession planning early. The key message is that the search for a new leader for your business should not begin when you are planning to sell up or retire, because it is simply too late to guarantee success.

Having independent directors (non-family members) on the board can provide an objective voice and different/objective perspectives to help resolve intra-family conflicts, and ensure that all employees are treated fairly. An advisory board often brings independent thinking.

However, even small family businesses can follow five simple steps to help establish a viable succession plan that can position the company to grow and succeed into the future.

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T H E B U S I N E S S O F I R I S H S M Es

It’s hard work to build a successful business, so the idea of leaving or handing over the reins is likely to engender a mixture of fear, grief and other conflicting emotions. But nothing lasts forever. So, whether you are selling your business, passing it on to the next generation or simply retiring, you need to plan, plan and plan, writes Paul Wyse, Managing Director, and Aine Reidy, Partner, Smith & Williamson.

1. Set your objectives Firstly, you need to determine if there will be continued family involvement in the leadership of the business or if there is a need to bring in professional management. Then identify the goals for the next generation of leadership and develop a vision and a set of objectives for the business.

Set out the goals of your succession plan and take professional advice to provide counsel and guidance.

As leadership candidates progress and enter the management stage of their careers, they should gradually be involved in governance. Many companies begin, for example, by inviting family members to board or management meetings as observers.

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bISME

Employer Disability Information: Strength in Numbers

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Employer Disability Information: Strength in Numbers

Strength in numbers – launch of EDI Employer Peer Network

WorkABLE Future 2018, March 27th in Croke Park, Dublin.

John Fulham, Corporate Partnerships, Grants, Trusts and Foundations Manager, Irish Wheelchair Association; Seònaid Ó Murchadha, HR & Disability Project Manager, Employer Disability Information; and Maureen Lynch, Hays Director, Diversity & Inclusion Lead.

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On Tuesday, March 27th, the Employer Disability Information (EDI) service hosted its first inclusive employment event, in partnership with Hays Recruitment and the Irish Wheelchair Association, called WorkABLE Future 2018.

The overall aim was to challenge the usual misconceptions and fears about diversity and inclusion in the workplace in relation to people with disabilities and change to employers’ perception of disabled workers’ abilities. The focus was on addressing employers’ difficulties in this area by highlighting practical solutions and approaches to recruiting jobseekers with disabilities and retaining loyal, experienced staff who acquire a disability during their working life. The event was held to encourage employers of all sizes to fill their skills shortages with creative thinkers and innovative problem-solvers, essentially people with disabilities.

POSITIVE REACTION

As almost 200 attendees filed past the various stands and into the large Hogan Suite in Croke Park, one thing was immediately obvious – there was an incredibly positive feeling in the room for the diversity

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cause with engaging discussions happening at every table. Companies and disability organisations were coming together with one goal in mind – to improve the employment prospects of disabled people.

Traditional competitors put their differences aside and could be seen sharing a pastry and their stories about disability inclusion.

Broadcaster Charlie Bird, MC for the event, took to the stage to encourage everyone to get engaged in the disability and diversity conversation.

Project Manager of EDI, Seònaid Ó Murchadha, opened the morning’s proceedings by highlighting the untapped pool of potential talent in the disability sector that many employers are missing out on. She said: “Today’s conference is the first event of its kind.

We need to unite – employers, employees, disability organisations and the employer representative bodies – to work together to achieve our common goal of making inclusion happen.”

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Maureen Lynch, Diversity & Inclusion Lead at Hays Recruitment, spoke about the importance of employers opening themselves up to this area to encourage employees to disclose their disabilities.

She said: “Diversity can improve employment retention rates and increase your company’s attractiveness to new recruits.”

The next speaker, Rosemary Keogh, CEO of the Irish Wheelchair Association (IWA), pointed out that 71 per cent of disabled people in Ireland are unable to find work - a key indicator of how people with disabilities make up an enormous untapped pool of talent. She said: “While employment rates have risen in Ireland in the period 2013 to 2016, the increase in employment for people with disability was less than half that of their non-disabled peers.”

She also highlighted the fact that disability organisations themselves have a lot of valuable knowledge and advice to share as they also employ many staff with disabilities.

The keynote speaker, Paul McNeive, was Managing Director of Hamilton Osborne King when the firm was sold to Savills for €50m. Paul started his career as a trainee in the basement of the firm and not even the loss of his legs in a fire prevented him from rising to the top position to lead 250 staff.

He said: “Getting people with a disability into employment and changing the narrative is all about the ‘plan of small steps’ – one small step at a time, one foot in front of the other and we can achieve anything!”

A lively panel discussion followed with speakers from Dell EMC, EY, ESB and Aura Holohan Group.

All had insights from their own workplaces and tips on how companies can address the barriers to employment for people with disabilities. Charlie Bird

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got the whole room involved in the questions and answers session creating a really engaging platform for debate.

The conference closed with a call to action for all to get involved and transform all this positive talk into action. EDI launched its Employer Peer Network which will continue to share best practice and address the common fears about disability at work, such as employee performance, high cost of supports, poor attendance, retention difficulties and health & safety concerns.

Join the EDI Employer Peer Network today and get in touch on info@employerdisabilityinfo.ie. You can also visit by clicking here, or call us on 01 6762014 or 086 1700472.

Employer Disability Information (EDI) is a free advice and information service for employers who need support on recruitment, management and retention of employees with disabilities. With the backing of a consortium of employer organisations - Chambers Ireland, IBEC and ISME – and funding from the National Disability Authority, the EDI team promote and drive inclusive employment initiatives through a dedicated helpline, email and by providing a wealth of information and guidance supports for employers on the website.

www.employerdisabilityinfo.ie info@employerdisabilityinfo.ie Twitter - @EmployerDisInfo Facebook - @EmployerDisInfo #AskEDI #inclusivebusiness

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bISME

Another side of Michael O’Flanagan

Marathon man Q..What do you do to relax/ de-stress?

A. Outside of work, running is one of my big interests. I try to go out running three times a week.

When did you start training for your first marathon and where was this?

I began running in June 2015, it’s a pastime I fell into by accident. My younger brother Gavin (8) is nonverbal and has autism, and since his diagnosis at the age of two, I have set myself a challenge every year to raise funds for the autism community. The charity I fundraise for is www.asiam.ie, an organisation that provides a onestop shop serving the needs of the autism community in Ireland.

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On the road: running rejuvenates Michael physically and mentally, and helps him get away from the hustle and bustle.

A series that highlights the lives of ISME personnel and members beyond the workplace. For the launch edition, The bISME talks to Michael O’Flanagan, Research Officer with ISME, about his love of running.

Michael joined ISME in May 2016, taking up the research officer role.

His work entails writing and publishing ISME’s quarterly publications, representing ISME at executive level, issuing press communications and engaging with ISME members on policy issues impacting their businesses.

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My first marathon took place in October 2015. That year I decided that my challenge for Gavin would be to complete the Dublin City Marathon. It was a great experience and an epic challenge, but one I was proud to do. There is no better feeling than crossing the finish line on marathon day.

Are you in a running group?

I have yet to join a running group, for the moment I am happy to just stick on my runners in my own time.

What does training entail in a normal day on the lead up to a marathon?

The old adage ‘practice makes perfect’ comes to mind. When training for a marathon, it is important that one gets oneself, firstly, into the right state of mind and, secondly, into the required physical shape.

For me, the former is more important than the latter. Coupled with the right physical and mental state a good diet is required. Good nutrition habits will have a cumulative effect and result in better overall health, which is what you will need in order to train effectively and repeatedly, maximising performance and allowing for the essential recovery and ‘repair’ time you’ll need in order

to minimise injury and illness. This was important for me.

Does marathon training influence your discipline in other areas of your life?

Yes! When training for a marathon, it is important to have self-belief and self-discipline. There is nothing like a 40.2km run to focus the mind. This discipline has crossed over into other areas of my life.

It helps focus the mind. With all runners, the end goal is crossing the line. So, whether it be work or college-related, I use the analogy of crossing the line and achieving the end result to motivate me, regardless of the task at hand.

Is running a therapeutic activity after work? What mental health benefits do you find from running?

I try to run at least three times a week, covering a distance of over 33km. Running provides me with the escapism I need to remove myself from the hustle and bustle of life. It encourages me to focus on my goals/ambitions and works wonders for my mental health. It rejuvenates me both physically and mentally.

What races are you hoping to compete in this year?

I’m taking part in a number of races this year. I began with a 16km race in Antwerp, which took place on Sunday, April 22nd.

The second, and the one I am most excited about, is Ireland’s first ever ‘Run for Autism’, an event being organised by myself and my family at 11am on May 27th for the charity AsIAm. This is a 5km race for runners and walkers, in Corkagh Park, Clondalkin. To register to participate in the race, click here.

We encourage everyone to come to this fun family event, which will have activities for children, music and entertainment.

My final race of the year will be the Dublin City Marathon in October, a challenge I am looking forward to.

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17 Kildare Street, Dublin 2, Ireland.

Phone : (01) 662 2755 E-mail: info@isme.ie Web: isme.ie

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