Sometimes, the hardest part of networking isn’t the meet-and-greets, but the follow-up. Jean Evans gives us her five top tips on how to maintain and nurture your network. Many people confidently attend networking events and meetings but falter on the follow-up. And as we all know, it’s all in the follow-up. That’s where the magic happens. Why you should nurture your network Building relationships take time, effort, energy and intention. Importantly, your relationships must be built and developed strategically on a foundation of authenticity. You must have done this before having an ‘ask’, like looking to someone for help, an introduction or a connection. You have to be intentional and focused about the follow-up. Know how much time and effort you can put into the process, and how best you can nurture relationships with the people in your network. Here are a few pointers to help nurture your network. 1. Keep a pad and pen handy I never leave home without a little notebook and pen. I never know when I might meet someone or come across a piece of information, a useful podcast, an article, or something I can share. The pen and paper are for writing down any useful information obtained, and the person to whom I want to pass this valuable information on to. Alternatively, there are loads of opportunities to find interesting bits and pieces others might value on social media platforms. If you come across an image, article or even an appropriate meme you think could be good, screenshot it and send it on to them. 2. One-to-ones Get to know people in your network on a more personal basis. This is imperative if you want to move the needle on the relationship. This can be done in person (best option), digitally, or by phone. However you do it, the key is taking the time to really connect with the other person. 3. Broker introductions Two people may be in the same network and not know each other yet, but you think these remarkable people should get to know each other. Share the love (and they’ll surely share it with you)!  If you hear of someone who is looking to hire, needs a job or is looking to source a supplier, and you know the perfect person, make a introduction by sending a friendly email to both, highlighting their expertise and suggesting they connect to move forward. You can also separately discuss the connection with the concerned party and assess if it’s appropriate in terms of need, fit for time, etc., before making an introduction. 4. Send a letter or message I have a stash of thank-you cards and notelets, and I also keep a roll of stamps to hand. Write a handwritten note of thanks to people who help you by nurturing their connection to you. Social media platforms are great for reminding us of birthdays, anniversaries and new jobs, so utilise this service by reaching out to those marking a special occasion. Don’t just use the pre-written text suggested by LinkedIn or other platforms. Personalise it. The recipient will remember your kindness, and you’ll develop that feel-good factor. 5. Invitations Invite people in your networks to visit other networks that you find valuable. If you’re learning, engaging, connecting and growing, why not share this opportunity with a friend, colleague or acquaintance? Jean Evans is the Founder of Network Me.

The start of a new year has brought fresh challenges for employers. Gemma O’Connor outlines six of the biggest hurdles ahead and what organisations can do to prepare The pandemic may be all but over, but some of the sweeping changes and challenges it brought to the way we work look likely to stay. Here are six of the biggest hurdles facing employers in 2023. Increased labour costs According to recent Peninsula Group research, the cost of doing business remains a key concern for employers as we enter 2023, and understandably so. While inflation in Ireland has come down one percent since October 2022, companies are still feeling squeezed by the cost of living. Further, a new survey conducted by Peninsula found that 72.3 percent of business owners listed rising costs as their number one concern going into the new year.  And while energy costs continue to impact the cost of living, which is having a knock-on effect on the cost of employment, the Government's Temporary Business Energy Support Scheme is now in place and will go some way towards alleviating these concerns. Return to the workplace tension As last year drew to a close and memories of COVID-19 restrictions became more distant, more employers asked their staff to return to the workplace. Not all workers were happy to do so, however, instead demanding permanent working flexibility. This conflict looks set to persist in 2023. Hybrid working arrangements have been the answer for many employers and their staff. Whether a hybrid model will continue to be a long-term policy for employers remains to be seen. Recruitment and retention Last year’s economic recovery following COVID-19 lockdowns combined with labour shortages to give employees increased bargaining power in the labour market. This trend saw leadership teams spending more time on recruitment and retention. Despite this increased spend, employers may regain the upper hand if Ireland slips into recession this year. Right to request remote work Government confirmed last month that the planned Right to Request Remote Working Bill would be shelved. Provisions allowing employees to request remote work will now instead be part of the Work Life Balance and Miscellaneous Provisions Bill, which is progressing through the legislative process. The following conditions will attach to the right to request remote work according to the latest draft legislation: Employees will be required to have completed six months continuous service before they can avail of the right to request remote work. Employers will get a period of four weeks (with an option to extend to up to eight weeks) to consider a request before approving or denying it. Employers must consider both parties' needs when considering a request and provide staff with the grounds for a refusal. The Workplace Relations Commission is expected to produce a Code of Practice to assist employers and employees with handling requests.   It is expected that the Bill will be passed into law early this year. Employers must familiarise themselves with the new law and be prepared to handle employee requests. Ignoring requests may lead to employees bringing claims to the Workplace Relations Commission. Statutory sick pay The new statutory sick pay scheme came into effect on 1 January 2023. Employers should ensure that they are prepared to comply with their obligations under this new scheme. For example: Reviewing payroll processes to ensure the new sick leave payments will be adequately reflected in payslips. Failure to keep proper records is an offence and attracts a maximum fine of €2,500). Reviewing employment contracts and policies to see if existing sick leave policy needs to be updated. No action may be necessary if the terms of the existing policy are more generous than the statutory payments outlined above. Notifying staff in writing about any changes in employment terms required under the statutory sick pay legislation. New public holiday in February Finally, a tenth public holiday becomes a permanent date in the calendar in 2023. St Brigid's Day falls this year on Monday 6 February 2023. Employers should ensure payroll is up to date and staff receive the appropriate paid leave or relevant alternative entitlement for this new public holiday. Gemma O'Connor is Services and Operations Manager at Peninsula Group

With data being touted as the new oil, organisations need Chief Data Officers to build the infrastructure required to get the ‘oil’ into the hands of consumers. Eoin O’Reilly explains why Chief Data Officers (CDOs) can be leaders, creating new ways to unlock the value of data, building the right foundations and infrastructure, and using insights to drive businesses forward. Here is an overview of the work CDOs do and its place in the wider organisation. A strategic value driver According to research conducted with data leaders for EY’s CDO Report 2022 on the Emerging Role of the Chief Data Officer in Ireland, data is now recognised as a foundational asset for every business, and Irish organisations will require dedicated senior executives to manage this asset. The rise in both the volume and value of data now being created has led to the emergence of a new senior executive role whose responsibility is to maximise and protect the value of an organisation's information. The need for the CDO has gained widespread acceptance as businesses turn to data to support informed decisions, guide strategy, and deliver competitive advantage. CDO and CTO The number of businesses led by US corporations hiring CDOs is growing rapidly. The EY Ireland report shows that the organisations with the most successful appointments tend to have a clear view of the interdependency between the role of the CDO and that of the Chief Technology Officer (CTO). These organisations have come to the correct conclusion that the roles are so interdependent that the CDO can't succeed without the right technology and platforms to capture, orchestrate and manage data. The CTO needs high-quality data to feed into those digital platforms. It is argued that the roles are so mutually dependent that neither can succeed if they don't collaborate. The data collected by core digital platforms can be almost valueless without a CDO. Conversely, brilliant insights could be left unactioned if they are not put in the hands of the right people in the right place at the right time. C-suite role As a result of the greater buy-in to the value of data on the part of CEOs and C-suites, all the executives interviewed for EY Ireland’s CDO report believe that the CDO plays a highly strategic role in Irish organisations, and that the importance of the position is growing. It’s not surprising, therefore, that demand to include the CDO in the C-suite is growing. Data reporting Focusing entirely on the C-suite may be missing the point, however. The more pressing issue here is the reporting line. The CDO can ensure that the data ‘agenda’ doesn't get buried under other layers of organisational red tape, and that it is communicated with clarity to the right people at the right time, thereby delivering long-term value for the organisation. An effective CDO The point has now been reached where organisations can no longer afford to be without a CDO if they want to maximise the value of their data as a decision support tool and competitive differentiator. The priority from here should be ensuring that the CDO is given the resources and seniority to execute the role effectively. Eoin O'Reilly is Partner, Head of Data and Analytics at EY Ireland

Do you find yourself gazing wistfully at new and shiny ERP systems while desperately trying to navigate your current antiquated software? If so, Trevor Dunne suggests that it might be time to break up with your ERP and find something better Breaking up is hard to do, but breakups are an inevitable fact of life. Despite this, admitting that a relationship has run its course is never easy. However, if your organisation’s enterprise resource planning (ERP) system is holding you back or making your staff unhappy, it’s time to face reality. Here are five signs that your relationship with your ERP may be ending. Everything starts to grate on you Things you used to find forgivable or even quirky now have you tearing your hair out. Having to wait ages for an answer and dumb down every process or transaction so the system can handle it only puts pressure on you. You start to wonder whether the fault lies with the system, or with you. Regardless of whose fault it is, you are seeing more and more complaints from frustrated staff who have to complete too many manual or duplicate tasks across too many systems or tools, and struggle to get the information they need. These days, people want to work with the latest technology and will vote with their feet by leaving if they feel they are being left behind. It’s easy to get past the occasional minor problem – no system is perfect after all – but your relationship is on a downward trajectory when your ERP system’s user experience or functionality is lagging behind your business needs. You no longer feel a spark Do you remember when you first implemented your ERP software, and it was the centre of everything? If those days feel like a lifetime ago, and you now find yourself running processes outside the system (go on, how many Excel sheets are secretly running the business?), then it is a significant indication that the relationship is on the way out. While it’s perfectly healthy to resort to Excel for some reporting requirements, if you are using it for transactional purposes or to generate new data, it is a sign that your relationship with your ERP system might be fraying at the edges. Once you extract the data from the system and start changing it with Excel, you can never really go back. These old processes are less efficient and effective, and you’re keeping data to yourself where no one can report on it! This can only go one way. Why must we always drag up the past? Can’t we look to the future? Are the fights to get data never-ending and ultimately unresolved? While everyone will struggle at some stage or another, not every interaction you have with the system should end in a screaming match. You just know that other organisations are running prescriptive and predictive reporting—yet here you are, struggling to understand what’s already happened. Rather than pushing the system away slowly and painfully, a clean break is often the best and kindest route for all parties. There is no trust [in the data] whatsoever Rule number one of relationships: trust is EVERYTHING. If you have no trust in your ERP software and what it’s telling you, this is a big red flag. If the system is forcing you to pull together information from several spreadsheets to present a report—or even worse—if insufficient or incorrect data has led to embarrassment in front of senior colleagues, it will be a slow and painful decline. If you can’t believe what you’re being told and have to dig for the truth, moving on might be the best way forward. You’ve started to look at other systems… a lot It is normal for your eye to wander from time to time. Maybe you’ve started to look at bolt-on solutions, or you’ve started using separate tools to get your job done. However, if you find that this is not just an occasional dabble and that you’ve got a proliferation of tools, applications, reporting aids, data models, robotics, and point-to-point integrations, you need to question the suitability of what’s at the heart of your business. Are you actually committed? Moving on The needs of any organisation (and its people) change with time. As we mature, our needs evolve. These days, everyone’s expectations are higher, and what was good enough at one stage of our development may not now be sufficient for where we see our company going and how we intend to get there. Trevor Dunne is Partner and Head of Technology Consulting at Grant Thornton

Ellen Moeller, Head of Europe at Watershed, speaks with members of the FinBiz 2030 Climate Action team to explain how businesses can positively impact climate action. It may be shocking to discover that some large companies have bigger climate footprints than small cities. With the recent Corporate Sustainability Reporting Directive (CSRD) on the way and a drive to improve environmental, social and governance (ESG) functions within businesses, it is critical for companies like these to invest in an efficient climate change program. But where do companies that have such a significant impact start? A comprehensive analysis of where the emissions lie within the company will provide a good base for identifying opportunities to invest in the innovative technologies needed to hit the targets that will ensure companies are ready for imminent disclosure requirements. This article suggests what else businesses, large and small, can do to help address the impact their climate emissions have. The part businesses play The world cannot decarbonise without businesses playing their part immediately. The planet cannot wait for top-down regulation to come into effect, especially when companies can make an impact right now by reducing their emissions. This can include everything from business travel to procuring clean energy for buildings and engaging suppliers to ensure they have sustainable programs. Climate will be a critical revenue driver in some cases, and having a good climate program in place can create opportunities to win business. This does not come without its challenges for companies wishing to make a positive impact on the climate crisis, however. The main barriers right now are education and understanding. Education It can be very intimidating for businesses to embark on their climate journey, and owners and managers might feel like they are falling behind or don't know where to start. This is where third-party companies, such as Watershed—dedicated to helping businesses measure, reduce and report on their carbon emissions to build dedicated climate programs—can help navigate that journey. Stakeholders must be educated internally, whether they are executives, procurement or finance teams. To help, all of the teams and departments within the business must understand what they can do to reduce carbon emissions and how to go about setting targets. Terminology Another challenge for companies is navigating and understanding ESG-related terminology. One key area is the differentiation between net zero (gold standard) and carbon neutral, for example, and the importance of avoiding emissions as opposed to offsetting emissions. Also important to grasp are the various regulatory frameworks coming into effect and the acronyms associated with each. Individual contributions Individuals can also help alleviate climate risk. One of the most important steps individuals can take is making sure their companies have a climate program in place by becoming vocal advocates for change. In many cases, we have already seen that employees have been the ones to get companies to start thinking about climate. So, while companies have a huge part to play as a whole, there are also opportunities for employees to be real advocates for climate action and mobilise change within their organisations. Get started For companies that want to change, but aren't sure how to go about it, the simplest way to positively impact the climate crisis is to get started. Begin with the numbers: having data is the best and easiest way to have conversations internally. No business could reduce its emissions overnight, so get started early and engage multiple people within the organisation. This is a journey, not a sprint, but the goal is reachable with good communication and buy-in from all stakeholders across the organisation. Ellen Moeller is the Head of Europe at Watershed. The FinBiz2030 Irish Task Force is committed to facilitating the effort to unite and mobilise the Irish finance and business community to achieve the SDGs by 2030. Member Niamh McLernon, Aileen Noonan, and Derek Lowry conducted the interview.

Advancing digitalisation will remain a top business priority in 2023. Lana Briggs and Richard Franck explain what companies need to do to keep up with this growing trend. The shifts to digital-first consumerism and hybrid working have expanded the reach of new customers and markets to businesses not traditionally operating in this space. For many companies, remote and hybrid working has allowed them to tap into the skills and capabilities of employees from a wider geographic catchment, improving their workforce, employee experience, and job market competitiveness. Digitisation and automation of manual processes are also experiencing a renaissance. The dual goal of productivity improvement and cost-saving is often targeted, but error reduction and improved customer experience, as well as signalling and analysis, have improved how companies learn from their customer base, detect changing customer needs, and adapt to evolving market conditions. Future-proofing digitalisation efforts In 2023, we expect continued digital capability growth and maturity. As businesses become more adept at adopting and extracting value from digitisation, we will likely see a ramp-up of new innovations in customer engagement and business operations. There will be value for organisations in ensuring that the digital developments implemented during the pandemic remain fit for purpose. While adding digital capability has been the main focus in recent years, customer needs, user experience and cost-effectiveness must take centre stage if digitalisation efforts are to be future-proofed. A key challenge will be maintaining the speed and agility of pandemic-pushed digitalisation programmes while also “right-sizing” the level of governance and controls that assure, not inhibit, these programmes. Securing budget for digitalisation programmes In the case of an economic slowdown, budgets will be tighter for many organisations, and cost reduction will become more central to the transformation agenda. A solid business case that justifies the cost to deliver against potential benefits to secure sufficient funding for digitalisation programmes will be a must. This means being clear on how to “spend to save” and not just “spend and hope to save”. There is no doubt that digitalisation can be an essential cost reduction lever while at the same time positively impacting the end customer. Teams looking for a transformation budget need to be clever, engaging and evidence-based in telling the story to ensure digitalisation programmes do not stall. Using digitalisation to maintain competitiveness Many start-ups and challenger businesses entering the Irish market have had robust digital offerings and low-cost operating models in recent years. They are built on new, agile technology platforms, giving them a competitive advantage as they can innovate faster than larger, more established businesses with complex operating models and legacy systems. Their onboarding processes are also typically more straightforward; customers can sign up in just a few steps from the comfort of their homes, making it much easier for them to vote with their feet. Additionally, it is easier for new global players to enter the Irish market in an increasingly digital world. In 2023, Irish organisations should be poised to continue to face new external competition.  Human connectedness at the centre of customer experience Based on the 2022 KPMG Customer Experience Excellence research, Irish consumers still value human interactions at critical points. Even the most digitally ambitious organisations should leave the door open for customers to speak to a human when it matters most. While digital channels should always be designed with accessibility for all customer groups in mind, for some, it may not be an option and access to traditional channels for these customers will remain imperative. Businesses should also be cognisant that digital literacy varies across demographics. If they want their digitalisation efforts to succeed, they must spend time on employee and customer awareness and invest in education to ensure no one is left behind. In 2023 and beyond, digital and human channels will play an important role, so these channels must be connected. Organisations must build their channels on systems that allow data to flow in real time. Achieving this connectivity will help organisations deliver a frictionless and continuous customer experience. Rethinking to deliver a competitive digital experience As well as connecting channels, a business must ensure that end-to-end operation is connected. For example, a brilliant app or website will be hindered by a trailing fulfilment function caused by disconnected capabilities. Everything that happens in a business is part of a process, so being clear on how these processes span functions, each function’s contribution to a process, and how processes support customer journeys is a fundamental part of creating a flexible enterprise. This will require organisations to rethink their processes, systems, data capabilities, team structures and partner/supplier ecosystems to deliver a competitive digital experience in 2023 and beyond. The importance of digital resilience and data security As we move closer to the data economy and customers share more personal data in exchange for highly personalised experiences, the emphasis on data security and privacy continues to increase. As more global data privacy regulations are introduced, businesses that adhere to these laws, uphold stringent data protection measures, and use customer data will earn customer trust and grow quickly. Central to this is balancing benefits for the company to sell more with benefits to the customer. Our research shows that customers are more likely to trust organisations that pair privacy and security with a valuable personalised service. Therefore, consideration of digital resilience, data utilisation and security will be more important than ever in digitalisation programmes in the future. Lana Briggs is Customer Experience Lead at KPMG Richard Franck is Cloud & Digital Technologies Lead at KPMG 

After the uncertainties of the last few years, we’ve learned to approach a new year with caution. However, Graham Reid has given us six reasons to be hopeful about Ireland’s economy in 2023 As we look into the new year, Ireland's economy is relatively well-positioned to deal with the turbulent economic conditions that are persevering from 2022. Strong multinational and technology sectors, robust employment levels, a highly skilled workforce and consistently favourable exchequer returns will give policymakers greater flexibility to respond to the challenges that may lie ahead. Here are six things we expect to see in the economy in 2023. 1. Lower spending levels due to sustained inflation Rising costs across the Irish and global economies are eroding consumer and business confidence. Consumer sentiment in Ireland tumbled in the latter half of 2022, and EY's Future Consumer Index found that 52 percent of global consumers are spending less on non-essential goods. Rising consumer and business prices are expected to persist into 2023, which is likely to further reduce real disposable incomes, increase interest rates, lower consumer demand, impact business performance and increase costs for investment and capital programmes for both business and Government. These effects will slow activity levels and feed into lower economic growth in 2023. 2. Ireland to remain resilient Although not immune from the turbulence in the global economy, as a small and open economy, Ireland should be somewhat better placed to deal with a downturn due to a strong combination of factors, including the presence of multinationals, continued inward investment, robust Irish businesses and government investment. Ireland's sectoral focus on pharma, food, technology and finance and the presence of overseas investment and companies has been a success story of the last two decades. Although the risks are well documented, it has significantly boosted Ireland's exchequer position. Most importantly, Ireland has a vibrant and growing indigenous business sector that includes large domestic and outbound multinationals and a thriving and expanding entrepreneurial cadre. These businesses are essential to the economy's vitality, providing critical employment and economic activity, fostering entrepreneurship, providing jobs and diversifying our export markets post-Brexit. Ireland has the benefit of a highly educated and skilled workforce and is now the sole English-speaking, common-law country within the European Union (EU). 3. Policy focus on energy costs and security of supply As energy costs spiralled throughout 2022, the affordability and reliability of supply issues dominated the political agenda. The war in Ukraine and rapidly rising energy prices brought the over-reliance on other geographies, and single sources of energy to the fore as countries acted swiftly to expand locations and diversify supply. The government's role in subsidising costs also came into question as it was deemed necessary to provide households with energy credits to tackle higher bills. The topic of supply diversification, energy price caps, and the effects of such interventions will span into 2023 and beyond. 4. Investment in critical infrastructure to retain competitiveness Maintaining competitiveness is essential for Ireland's continued growth story, particularly in attracting investment and talent. For businesses to continue to invest and prosper in Ireland, they will need to attract top global talent to work, particularly when there is a tight labour market and record employment levels. A buoyant, functioning housing market where people can find suitable accommodation is essential for companies. We know that housing availability can significantly impact our global competitiveness. This year will see continued investment in improving infrastructure capacity in housing and ensuring adequate supporting infrastructure such as water and energy to accommodate our expanding population. Getting this right will facilitate further economic and population growth while supporting business investment and entrepreneurship. 5. Disrupted transition to net zero The transition to a green economy has been disrupted due to the ongoing energy and cost of living crises. Businesses and consumers are refocusing on costs, and there is less appetite to spend more on greener alternatives. However, policy measures to encourage climate-friendly activities and behaviours, such as carbon taxes, become more controversial if they are seen to feed further price increases. New EU regulations such as the Corporate Sustainability Reporting Directive (CSRD) will emphasise transparent corporate reporting and set a higher standard on environmental, social and governance (ESG) practices. Government policy in 2023 will have to carefully balance the need for decisive action on climate action and the mounting costs pressures on households. 6. Accelerated digitalisation agenda Digitalisation is a global trend we can expect to gather further pace in 2023. We will see more data-centricity, tech transformations and the rise in the use of artificial intelligence to solve business issues, manage costs, help with sustainability challenges and deliver long-term value. The Irish Government's National Digital Strategy (NDS), launched in 2022, aims to "drive a step-change in the digitalisation of businesses, in particular, SMEs, to sustain Ireland's attractiveness as a location for leading digital enterprises." Taking advantage of the presence of a strong tech sector in Ireland, and becoming a leader in digitalisation and innovation, will put us on a solid global footing for continued investment and economic growth in the years ahead. Graham Reid is Partner and Head of Markets at EY Ireland.

With Generation Z now established in the workplace, companies need to be savvy when creating an accommodating workplace without forgetting the previous generations' needs. Paul O'Donnell explains how to do just that Are you Generation Z, Generation Y, Generation X, or the rarer breed of baby boomer? With retirement ages drifting and young graduates streaming into the jobs market, a truly diverse workplace will include workers from all generations. Born between 1996 and 2007, Generation Z are not a niche cohort – they make up over a fifth of the population and are the fastest-growing electoral and consumer group – but as relative newcomers to the workforce, they may play a different role as part of their respective teams. In 2022, the Irish recruitment firm HRM released its 2022 'Understanding the Misunderstanding – Intergenerational Insight Report'. The report highlights how age-related stereotypes could mean that workers are somewhat pigeonholed and often assigned specific tasks based on their age and perceived behaviours. As this misunderstanding can negatively impact employee satisfaction and fulfilment – as well as the bottom line – a strategic approach to creating a working environment that meets the needs of all workers is vital. Reading between the lines, the report highlights the inherent challenges in building a genuinely intergenerational workplace and why employers must be cognisant of these to unlock and tap into the talent of all age groups. Priorities As illustrated by the survey findings, each generation has priorities regarding their chosen employer and future career path. It was clear that Generation Z workers have different views on work/life balance, and their preferred communication style is markedly different to that of their colleagues. It has been well-documented that Generation Z, on the whole, tends to be well-educated. They have also witnessed the significant disruption of a global pandemic as they began their working lives and have come of age as the realities of the climate crisis begin to bite. Thus, it is perhaps unsurprising that the report indicates that Generation Z sees themselves as quite different from other generations. On the ground, this can cause issues. An astounding third of Generation Z participants think differing perspectives held by different generations caused difficulties at work regularly. However, the diverse needs of each generation of workers are not necessarily competing. For example, the report found that Generation Z prefers an employer that supports their health and well-being. In contrast, baby boomers were far more concerned about the organisation's financial viability. Yet, employees from all generations benefit from an employer focused on both the bottom line and the health and well-being of its employees. According to a 2021 LinkedIn survey on learning and development, Generation Z is keen to upskill and learn on the job, as their longer-term goals may include an entrepreneurial endeavour. This commitment to lifelong learning should be considered when building people strategies that include ongoing training, rewards or recognition programmes, and career path trajectory. We also learned that for Generation Z, a collaborative culture is the number one factor when choosing a workplace. We know that firms with rigid hierarchical structures are the most likely to struggle to adapt to Generation Z's workplace needs. However, the reality is that traditional hierarchical structures and incremental career growth based on tenure are now outdated concepts. Yet, while an organisation may seek to re-orient its historical structure to accommodate Generation Z as they continue to stream into the workforce, this must be balanced against a duty of care to the other generations of workers. In this regard, the pace of organisational and technological change in the last two decades certainly presents both opportunities and challenges. As digital natives, Generation Z will invariably find digital up-skilling and role development easier – or at least more straightforward. And according to Kantar Global, the smartphone tends to be Generation Z's preferred method of communication. As hybrid workplace models become embedded, ensuring effective communication and savvily employing technology to enable this is a given. However, the pace of change can pose some problems, which must also be considered when creating and developing learning strategies for up-skilling and role development. Blending the generations' needs When blending the right mix of generations, employers must not lose sight of the bigger picture: they must be aware of the differing priorities of each, but this cannot be to the detriment of any one age group. By recognising the needs and wants of each employee cohort, they can exploit the possible synergies that a diverse workforce is capable of. The hunger and drive displayed by Generation Z will always be a welcome addition to a team, but the talent, skills, and experience of other generational cohorts are indispensable. Can a company culture please everyone all of the time? Of course not. But by re-orienteering critical elements of the organisation's culture to satisfy Generation Z, they risk alienating the other generational cohorts – who still comprise the majority of the workforce.  The HRM report clearly illustrates that the key to maintaining good intergenerational relationships is recognising differences and discussing them. As with most workplace challenges, clean and open communication – face-to-face, via email, or even over WhatsApp – is key. Paul O'Donnell is CEO at HRM Search Partners.

With the gender pay gap legislation in full swing, now is the time to invest and empower women in the workplace. Dawn Leane explains how There are numerous ways in which organisations can support the development of female talent. In approaching this piece, I asked myself, 'what is the main challenge that female coaching clients report?' The answer appears deceptively simple, so simple that it is often overlooked: communication—specifically, communication in two areas: articulating expectations and delivering unequivocal feedback. As advice goes, it's not particularly innovative or exciting, but it is fundamental. After all, how can anyone live up to expectations if they don't know what they are? Early promotions are usually based on the ability to perform tasks to a high standard, manage a function, coordinate and plan. Frequently, a promotion is preceded by the 'tap on the shoulder' indicating that an application is actively encouraged. However, at a senior level, there is a whole set of essential behaviours, attitudes and competencies that are not explicitly stated anywhere. Of course, this also applies to men. However, they have a more significant advantage when understanding many of these behavioural norms and unwritten rules. Accordingly, professional women are far more likely to find themselves disadvantaged when navigating the corporate environment. I often share the example of a client who was identified as having high potential, yet her career had stalled. She was performing well and getting all the right signals, but nobody had discussed her next move with her. Ultimately, she initiated the conversation with her manager, who asked what took her so long. She was being judged for her lack of self-advocacy – yet, nobody had told her this was an expectation. The double-bind—a set of double-standards women are subjected to in the workplace—is a significant factor in communication. To succeed, women must display the traits commonly associated with effective leadership, such as assertiveness. However, when women behave assertively, they often suffer consequences that their male counterparts don't experience. A significant long-term impact is associated with the double bind – it can prevent women from receiving the crucial feedback they need to progress. According to research conducted by McKinsey and LeanIn.Org in 2016, managers (men and women) are more likely to be concerned about appearing harsh or provoking an emotional response when delivering developmental feedback to women and so dilute the feedback or talk around the issue. The consequence of this hesitancy is that women are less likely to receive the critical feedback needed to succeed. Year after year, the McKinsey and LeanIn.Org Women in the Workplace report illustrates how women lose ground at every step on the corporate ladder. As a result, there are too few women to promote to senior leadership positions in representative numbers. In addition, women are increasingly leaving organisations that make it difficult for them to advance. When discussing career development with female employees, managers should consider the following: Don't assume that the organisation's culture is understood equally by all; Clearly articulate the behaviours that the organisation values and rewards; Don't be afraid to set performance objectives that may be difficult to quantify, such as networking; Create space for dialogue, asking questions such as 'what information would be helpful right now?'; and If tempted to dilute difficult feedback, ask yourself, 'what would I value if I were in this person's position?' Information is power. Presenting female employees with clear rules of engagement and detailed feedback levels the playing field. Once that is achieved, women will do the rest! Dawn Leane is Founder of Leane Empower.

With Christmas party season back in full swing for the first time in a long time, employers should plan ahead to prevent unnecessary risks arising on the night, writes Gemma O’Connell With COVID-19 restrictions now consigned to the past, the office Christmas party promises to provide a long-awaited opportunity for your business to celebrate coming through the pandemic. As the party season returns with a bang, however, it is also a good time to remind staff that, although it is a celebration, the Christmas party is nevertheless a work event. Not doing so risks increasing the likelihood that one or more of your employees will act inappropriately once they are away from the professional environment of the workplace. At its worst, unprofessional employee behaviour can lead to devastating consequences for your business, so it is well worth taking steps to mitigate it. Here are some of the main risks you should be aware of and steps you can take to protect your organisation. Alcohol consumption The majority of people will likely enjoy a drink on a night out, so most employers like to show appreciation for their team members by covering the cost of a meal, a few rounds, or even the drinks bill for the whole night. Each business has its own unique culture, and it's important to do what's best for your team, but too much alcohol can cloud people's decision-making. The last thing you want is an alcohol-fuelled brawl breaking out, or allegations of harassment arising.   It is also a good idea to ensure that everyone has made arrangements to get home safely after the party. Harassment and vicarious liability When the Christmas party takes place off-site, employees may think that company policies on bullying, harassment and sexual harassment are less applicable, so it's a good idea to remind all staff that these policies apply every bit as much to work-related social events as they do in the office. Victims of harassment can sue their employers in circumstances where the employer has failed to take all reasonable steps to prevent harassment from occurring. A reminder that such conduct is unacceptable even when off-site plays a proactive part in protecting the organisation.   Health and safety considerations Although many businesses will choose a restaurant or other suitable venue, some employers may decide to host Christmas celebrations in the workplace. If you're planning a party on your premises, don't forget your health and safety obligations. Control measures to minimise the risk of slips and trips, fire hazards and safe access to your building should all be considered. Social media Many employees may be accustomed to sharing pictures or videos captured on a night out with their connections on social media. It is best to put in place a social media policy confirming that all staff must respect the privacy rights of their colleagues and uphold the company's reputation online. Post-party absences If employees have to be in the office the day after the party, you must communicate your expectations. Some employers may loosen the timekeeping rules for staff if the circumstances allow, but you have to clarify what will and will not be tolerated, such as no-shows or arriving at work intoxicated. Final Christmas Party tips While some rules will need to be followed by all staff, managers need to bear in mind a few additional extras. Be wary of putting people under too much pressure to attend the Christmas party. Not all staff enjoy large gatherings, so reassure everyone that there is no obligation to attend. Try to keep it as inclusive as possible. You may have vegetarians, vegans, and non-drinkers attending. Providing options for everyone will ensure that no one feels left out. It's no harm to ask one member of your management team to remain sober and to ask that person to deal with any incidents that may arise. Finally, have some fun! It's been a tough couple of years, and it's important for everyone to celebrate the wins. With the proper precautions in place, everyone should feel comfortable having a good time. Gemma O'Connor is Services and Operations Manager at Peninsula Group

With a new year comes new resolutions, but is it really necessary for leaders to adopt new practices? Anne Phillipson extols the virtues of tried and tested tools It's that time of year again. We reflect on the past 12 months, look ahead to the next calendar year with all its untold possibilities, and consider what changes we want to make. ‘Top 10’ lists have already started appearing, guiding us on everything from books to read, podcasts to listen to, and fashion trends to follow. Gyms will be gearing up for new membership intake in January, and the chocolate and biscuit aisles in the shops will be backfilled with workout gear and healthy living merchandise. While I am certainly not against making plans for professional improvement, I’m not convinced we need a list of 'new' leadership practices for 2023. That’s because the foundations of effective leadership remain constant: having a clear vision of the future that inspires your people to want to work hard; engaging your team by playing to individual strengths and organising the team to work well together; and delivering the results that matter for your business. Authentic leadership means that you know yourself, your strengths, and your values—and you can build a team around you to compensate for any gaps. A leader builds a reputation around what others can consistently expect from them, which ultimately builds trust. That's it. That's what leadership is all about. Where the requirement for change and flexibility comes is the ability to pay attention to external changes and then adapt your vision and focus accordingly. As market conditions change, an effective leader anticipates the knock-on effect on their business and responds proactively. Effective leaders question how their approach should adapt when the context changes. They always hold true to their values, however. Leaders should communicate even more in times of change, ensuring the team is informed, and spend more time listening to ensure that the team's questions and concerns are fully understood. No one knows what 2023 has in store for us. None of us anticipated that 2020 would bring a global pandemic that would dramatically change our working lives. Even when faced with unprecedented change, however, effective leaders worked through the ambiguity by responding to the evolving circumstances, engaging their teams, and re-aligning their business plans to adapt to the new environment. All of this built new leadership muscle to deal with a volatile, uncertain, complex and ambiguous world. Those muscles will serve leaders well as we face new challenges in 2023 – whether they relate to the ongoing war in Ukraine, the cost-of-living crisis, energy price fluctuations, or some as yet unknown mega trend. That old saying, 'the only constant is change', is true—but when it comes to leadership, there's really nothing new. Anne Phillipson is Director of People & Change Consulting at Grant Thornton

With mandatory gender pay gap reporting becoming a legal requirement for some companies this month, effective reporting is essential. Doone O'Doherty outlines her five-step guide to getting it right Irish companies employing 250 people or more were required to publish their first gender pay gap report online by 1 December 2022, but not all have met the deadline. For those lagging behind, there are potential consequences. Guidance issued by the Department of Children, Equality, Disability, Integration and Youth, notes that: “The Gender Pay Gap Information Act 2021 provides the Irish Human Rights and Equality Commission with the power to make an application to the Circuit Court or to the High Court for the granting of an order requiring the employer concerned to comply with the Regulations”. The 2021 Act also provides that an employee may refer their employer to the Director General of the Workplace Relations Commission for failure to comply with regulations. It is therefore crucial that any company employing 250 people or more, which has yet to publish its gender pay gap, take immediate steps to do so. Here are the five steps I recommend: 1. Complete your calculations The Gender Pay Gap Information Act 2021 outlines 11 specific data points that must be included in reports. Companies should ensure that: they understand what is required, such as who is included in the count, the snapshot timeframe, and what counts as ‘ordinary pay’ and ‘remuneration’, etc.; they have gathered all relevant data needed for the calculations; and calculations are complete. Once this is has been done, the focus should shift to conducting any additional analysis needed to contextualise the numbers in the report. 2. Document your approach Your calculations will need to be re-run annually, and your 2022 gender pay gap number will be the baseline against which annual progress will be measured. Ensure your approach is well documented so that your organisation can compare like-for-like each year. As some aspects of the legislation are unclear, a judgement call may be needed. In this context, documenting the rationale will be important. 3. Finalise your report In addition to the reporting of certain data points, the legislation requires that companies: explain the reason for any gender pay gap; and ·outline measures that have been taken or proposed to close the gap. Ensure that any reasons given for the gap are evidence-based. Do the numbers reported support the reasons for a gap, for example? Are actions proposed to close the gender pay gap in your organisation realistically implementable? In finalising your report, consider the following: the branding support needed to ensure that the report aligns with other publications produced by your organisation; who in the organisation will carry out a final review; who will provide the final sign-off; and who will be responsible for uploading the report to your website. 4. Lock down your communications strategy With a sensitive and technical topic like gender pay gap reporting, effective communication is essential. When considering your communication strategy, make sure that: your marketing and public relations teams are prepared to execute the communication strategy; all senior stakeholders are fully briefed on the key messages for both internal and external audiences; and you have considered whether you should nominate a team member responsible for responding to media queries and social media comments. 5. Start to prepare for year two There will be a very short window between reporting now and the next snapshot date in June 2023. To ensure that you can demonstrate progress in closing your gender pay gap, you must drive ongoing Diversity, Equity and Inclusion (DE&I) plans and consider whether new initiatives may be required. The steps companies take now when publishing their reports will largely determine how their gender pay gap rating will be received and understood, both internally and externally. My advice is that employers prepare their completion checklist without delay—and check it twice. Doone O'Doherty is Partner of People & Organisation in PwC

Julia Rowan answers your management, leadership and team development questions Q: My team is positive, proactive and eager to learn more. My company doesn’t invest much in training and won’t give me a budget because ‘nothing is broken’. How can I keep them motivated? There is a lot you can do to motivate and upskill your team. First, think about how you would describe your team. Is it strategic? Independent? Collaborative? The words you select will guide the way you direct them. The next step is to consider the way you engage with your team. Set yourself up so that your conversations become a learning experience. Coach and listen. Trust the team enough to share your challenges and see what ideas they have. Here are a few ideas to get started: Start a pool of resources – books, articles, podcasts, webinars – where everyone is able to access the same material. Schedule protected time to discuss and share ideas, allowing team members to choose the material and chair the discussion. Organise an away day (even if you are on company premises) and scope out a small number of business projects that will move the team forward and give them learning opportunities. Small groups could work on individual projects and report back regularly to the wider team, making sure that all retain ownership. Ask them to report back on the ‘what’ (what we are doing), the ‘how’ (the process) and the learning (what went well and what could be improved on). Make your team meeting a place where people can share their learning about their everyday experience. This can be done in very simple ways: like opening with a ‘check-in’ (what are you proud of achieving this week? What has your biggest challenge been?), but also by asking team member to make presentations around projects, tasks or initiatives that they have undertaken, and sharing their learning. Seek out cross-functional projects that your team can get involved with.If you put together a business case with learning objectives, outputs and impacts, your company might give you a budget. Q: At meetings, my contribution is often overlooked, but I’m often the only person who has prepared. There is lots of aimless discussion. When my ideas are heard, they are often taken up but attributed to others. This is a common problem, very frustrating and exacerbated by online communication. To address the issue long-term, talk to the meeting owner, explain your challenge, and suggest that they do a ‘go-around’ from time to time, hearing from each individual. Meet the main movers and shakers one-to-one to discuss challenges and share ideas – this puts you on their radar. Some tactics: sit close to the Chair so that it’s easy to get their attention. Quieter people often contribute tentatively, in short sentences. Note the points you want to make so that you can be deliberate when you speak. I’ve devised a structure that quieter clients have found useful: ‘Signal, State, Suggest’. Preface your contribution with a ‘signal’ that gets people’s attention: “reflecting on what I’ve heard, there are two ways to tackle this”. State (give your input): “we could either do A or B”. Suggest (a way of moving on): “Given current circumstances, I suggest we”. It’s not easy to enter the melee– but your meetings will be better for it. If you read one thing... Coaching for Performance – The Principles and Practice of Coaching and Leadership by Sir John Whitmore. An accessible and practical book about coaching. The updated 25th anniversary edition has recently been published. Busy managers often direct. Coaching creates a conversational space for learning through everyday experience.

As the year draws to a close, we talk to three members about the challenges of the past 12 months and their hopes for the future Pamela McCreedy Chief Operating Officer Police Service of Northern Ireland The most recent economic forecasts make for sobering reading—a perfect storm of powerful geo-political and economic currents ushering in a period of profound economic uncertainty and, most likely, recession.  Combined with the most recent Northern Ireland Fiscal Council report, which points to a perilous public finance landscape and a growing cost-of-living crisis, it is perfectly understandable that hope and optimism are in short supply. Reform of Northern Ireland’s public sector has been a matter of significant discussion for decades, but the public finance landscape will necessitate a return to difficult first principle discussions about how we operate public services, to what standard and how these might be prioritised. There is a consensus that painful choices lie ahead. In stark choices, however, there are also opportunities. Service redesign, especially on the scale the public sector will need to embrace, often offers a chance to think and do things differently. In my own organisation, which faces unprecedented budgetary pressures, we have embarked on a demand and capacity analysis. While the circumstances necessitating this innovation are regrettable, it will provide a more evidence-based, outcomes-orientated approach to policing service delivery. But there are chinks of light that leaders can cling onto when looking ahead to next year. In the first quarter of 2022, Northern Ireland’s economic output was at a 15-year high. According to the Northern Ireland Statistics and Research Agency, over the last three years, we have grown strongly, with output up by 4.8 percent compared to GDP growth of 1.3 percent in the UK. This is not to diminish the challenges that lie ahead for families and local communities—rather, simply to make the point that, with the right combination of public policy and leadership, we can overcome these challenges and thrive as an economy and a society. This year has seen our society emerge from the most difficult public health crisis of our time. While we are glad to begin leaving that behind, perhaps one positive has been our renewed sense of concern for our neighbours and a reminder of the importance of people in any organisation.  As we emerge from one crisis, however, we enter another. Behind these stark economic indicators are real families who are struggling now, many of whom work in our respective organisations.  As we move into 2023, we will need to rediscover that sense of solidarity in helping our people through another crisis year. Brian Murphy Audit & Assurance Partner, Deloitte  It has been another year that wasn’t quite what we imagined it would be, as we spun from one crisis to the next. Looking towards the New Year, it’s clear uncertainty will once again prevail.  Inflationary pressures have resulted in weakening consumer and business sentiment. Of the 23 countries surveyed in Deloitte’s most recent Global Consumer Tracker, consumers in Ireland were the most concerned about inflation. We are in an energy supply crisis while the climate emergency continues to heighten. There’s no doubt that businesses are approaching the New Year with caution. Deloitte’s bi-annual CFO survey found that just 32 percent of CFOs are forecasting an increase in revenue over the next 12 months—down from 61 percent six months ago.  Businesses are also facing a huge talent shortage. In fact, according to the same survey, 96 percent of Irish CFOs feel that retaining and attracting the right talent is one of the biggest risks they will face in the coming year.  Through our work with clients, we are seeing more focus on upskilling the existing workforce and ensuring workplace settings and policies meet the needs of employees to help them navigate the changing terrain.  The pandemic implemented new ways of working that are here to stay, and I believe businesses that continue to offer employees flexible working patterns, and invest in programmes that meet employee needs, will stand out in the year ahead.  All this considered, there have also been great opportunities in the Irish business landscape this year. One of the highlights for me was taking the helm of Deloitte’s Best Managed Companies programme. What set our winning companies apart in 2022 were the innovations that allowed them to endure and drive profitability, a distinct focus on local communities, and putting people at the heart of their organisations. I expect and look forward to seeing this continue in 2023.   David W Duffy Co-founder and CEO, The Corporate Governance Institute We are facing a high level of global uncertainty. The challenges of post-COVID-19 recovery for businesses, like a possible recession, inflation and the war in Ukraine, are all contributing to feelings of uncertainty—not to mention the recent cryptocurrency meltdown.  As we head into 2023, our organisation is looking to build on what has been a very fast growth trajectory. To capitalise on this, we launched our first online and accredited Diploma in environmental, social and governance (ESG) in November, which has had a significant uptake globally. The challenge in 2023 will be identifying and addressing the risks to our business. Thankfully, we are developing a global footprint using a variety of distribution channels, which will diversify risk.  The other challenge for a fast-growing business is attracting and retaining talent. The tech slowdown can only help us. I think, in planning for 2023, organisations will need to be cautious and take as much risk off the table as is appropriate. Investment decision-making will be influenced by the variables in the environment they operate in, and many will only be made on the back of positive data. 2022 has been good to us in our second year of business. We have built a great and diverse team with an amazing culture. One of our key values is that everyone has a licence to think and experiment—and we back their judgement. So far, it’s working.

The roadmap for the EU Commission’s milestone Corporate Sustainability Reporting Directive is taking shape and now is the time to start preparing for a brave new era in non-financial reporting, writes Conor Holland With the Corporate Sustainability Reporting Directive (CSRD) now approved by the European Council, entities in the EU must begin to invest significant time and resources in preparing for the advent of a new era in non-financial reporting, which places the public disclosure of environmental, social affairs and governance matters (ESG) matters on a par with financial information. Under the CSRD, entities will have to disclose much more sustainability-related information about their business models, strategy and supply chains than they have to date. They will also need to report ESG information in a standardised format that can be assured by an independent third party. For those charged with governance, the CSRD will bring further augmented requirements. Audit committees will need to oversee new reporting processes and monitor the effectiveness of systems and controls setup. They will also have enhanced responsibilities. Along with monitoring an entity’s ESG reporting process, and evaluating the integrity of the sustainability information reported by that entity, audit committees will need to: Monitor the effectiveness of the entity’s internal quality control and risk management systems and internal audit functions; Monitor the assurance of annual and consolidated sustainability reporting; Inform the entity’s administrative or supervisory body of the outcome of the assurance of sustainability reporting; and Review and monitor the independence of the assurance provider. The CSRD stipulates the requirement for limited assurance over the reported information. However, it also includes the option for assurance requirements to evolve to reasonable assurance at a later stage. The EU estimates that 49,000 companies across the EU will fall under the requirements of the new CSRD Directive, compared to the 11,600 companies that currently have reporting obligations. The EU has confirmed that the implementation of the CSRD will take place in three stages: 1 January 2024 for companies already subject to the non-financial reporting directive (reporting in 2025 for the financial year 2024); 1 January 2025 for large companies that are not presently subject to the non-financial reporting directive (reporting in 2026 for the financial year 2025); 1 January 2026 for listed SMEs, small and non-complex credit institutions, and captive insurance undertakings (reporting in 2027 for the financial year 2026). A large undertaking is defined as an entity that exceeds at least two of the following criteria: A net turnover of €40 million A balance sheet total of €20 million 250 employees on average over the financial year The final text of the CSRD has also set timelines for when the Commission should adopt further delegated acts on reporting standards, with 30 June 2023 set as the date by which the Commission should adopt delegated acts specifying the information that undertakings will be required to report. European Financial Reporting Advisory Group In tandem, the European Financial Reporting Advisory Group (EFRAG) is working on a first set of draft sustainability reporting standards (ESRS). These draft standards will be ready for consideration by the Commission once the Parliament and Council have agreed a legislative text. The current draft standards provide an outline as to the depth and breadth of what entities will be required to report. Significantly, the ESRS should be considered as analogous to accountancy standards—with detailed disclosure requirements (qualitative and quantitative), a conceptual framework and associated application guidance. Readers should take note—the ESRS are much more than a handful of metrics supplementary to the financial statements. They represent a step change in what corporate reporting entails, moving non-financial information toward an equilibrium with financial information. Moreover, the reporting boundaries would be based on financial statements but expanded significantly for the upstream and downstream value chain, meaning an entity would need to capture material sustainability matters that are connected to the entity by its direct or indirect business relationships, regardless of its level of control over them. While the standards and associated requirements are now largely finalised, in early November 2022, EFRAG published a revised iteration to the draft ESRS, introducing certain changes to the original draft standards. While the broad requirements and content remain largely the same, some notable changes include: Structure of the reporting areas has been aligned with TCFD (Task Force on Climate-Related Financial Disclosures) and ISSB (International Sustainability Standards Board) standards – specifically, the ESRS will be tailored around “governance”, “strategy”, “management of impacts, risks and opportunities”, and “metrics and targets”. Definition of financial materiality is now more closely aligned to ISSB standards. Impact materiality is more commensurate with the GRI (Global Reporting Initiative) definition of impact materiality. Time horizons are now just a recommendation; entities may deviate and would disclose their entity-specific time horizons used. Incorporation of one governance standard into the cross-cutting standard requirements on the reporting area of governance. Slight reduction in the number of data points required within the disclosure requirements. ESRS and international standards By adopting double materiality principles, the proposed ESRS consider a wider range of stakeholders than IFRS® Sustainability Disclosure Standards or the US Securities and Exchange Commission (SEC) published proposal. Instead, they aim to meet public policy objectives as well as meeting the needs of capital markets. It is the ISSB’s aim to create a global baseline for sustainability reporting standards that allows local standard setters to add additional requirements (building blocks), rather than face a coexistence of multiple separate frameworks. The CSRD requires EFRAG to take account of global standard-setting initiatives to the greatest extent possible. In this regard, EFRAG has published a comparison with the ISSB’s proposals and committed to joining an ISSB working group to drive global alignment. However, in the short term, entities and investors may potentially have to deal with three sets of sustainability reporting standards in setting up their reporting processes, controls, and governance. Key differences The proposed ESRS list detailed disclosure requirements for all ESG topics. The proposed IFRS Sustainability Disclosure Standards would also require disclosure in relation to all relevant ESG topics, but the ISSB has to date only prepared a detailed exposure draft on climate, asking preparers to consider general requirements and other sources of information to report on other sustainability topics. The SEC focused on climate in its recent proposal. The proposed ESRS are more prescriptive, and the number of disclosure requirements significantly exceeds those in the proposed IFRS Sustainability Disclosure Standards. Whereas the proposed IFRS Sustainability Disclosure Standards are intended to focus on the information needs of capital markets, ESRS also aim to address the policy objectives of the EU by addressing wider stakeholder needs. Given the significance of the directive—and the remaining time to get ready for it—entities should now start preparing for its implementation. It is important that entities develop plans to understand the full extent of the CSRD requirements, and the implications for their reporting infrastructure. As such, they should take some immediate steps to prepare, and consider: Performing a gap analysis—i.e. what the entity reports today, contrasted with what will be required under the CSRD. This is a useful exercise to inform entities on where resources should be directed, including how management identify sustainability-related information, and what KPIs they will be required to report on. Undertaking a ‘double materiality’ analysis to identify what topics would be considered material from an impact and financial perspective—as required under the CSRD. Get ‘assurance ready’—entities will need to be comfortable that processes and controls exist to support ESG information, and that the information can ultimately be assured. The Corporate Sustainability Reporting Directive represents a fundamental change in the nature of corporate reporting—the time to act is now and the first deadline is closing in.

Companies preparing for the commencement of the Protected Disclosures (Amendment) Act 2022 in the New Year will need to overhaul whistleblowing policies and processes, but the effort will bring clear benefits, writes Gráinne Madden Encouraging people in an organisation to speak up about their concerns should be a no-brainer. Why would an organisation not want to know about a potential risk? Why would an organisation want an employee to feel the need to go to an external body, such as a regulator or the media, to highlight internal problems? International research repeatedly reinforces that there are two main reasons why people fail to speak up about their suspicions of wrongdoing. First, there is the fear of retaliation. Current Irish and UK law is seeking to address this by offering protection. The second reason people fail to speak up about their suspicions of wrongdoing in an organisation is fear of futility. This is the fear that nothing will be done, even if they do speak up—and this is why having clear policies and processes in place is so important.  The absence of a whistleblowing policy and process in an organisation will certainly send the message that the organisation does not really want to hear about any problematic issues that may exist or arise.  As it stands, in Ireland and the UK, workers are entitled to legal protection against dismissal, or other reprisal from their employer or colleagues, when disclosing concerns about certain issues. Until now, however—except in certain sector-specific areas—most organisations have not been required to put a whistleblowing policy or procedures in place, or to follow up on such disclosures.  The EU Whistleblowing Directive will, however, bring major changes to which organisations operating in EU jurisdictions must now respond. In Ireland, the Protected Disclosures (Amendment) Act 2022 will commence on 1 January 2023, giving effect to the EU Directive. New requirements for organisations There are several key additional requirements that will apply to organisations under the new Act, which are considered below. Employee thresholds For workplaces with more than 50 employees, there will be a requirement to have formal channels and procedures for receiving and, crucially, following up on disclosures. Workplaces with between 50 and 249 employees have until December 2023 to comply, and 250-plus employee workplaces must comply at commencement.  However, all organisations operating in certain sectors will be required to comply at commencement, even those employing fewer than 50 people. This includes:  public bodies; companies subject to EU laws in the areas of financial services, prevention of money-laundering and terrorist financing; transport safety; and protection of the environment (offshore oil and gas installations and operations only). The 2022 Act states that the Minister for Public Expenditure and Reform may, by order, reduce the threshold of 50 employees for specified classes of employers, subject to a risk assessment and public consultation.  Change of definitions and burden of proof Under the new Act, the scope of protected persons will be extended to include non-executive members, shareholders, volunteers, and ‘pre-contractual’ employees, such as candidates applying for a job during the recruitment process before the work-based relationship even begins. Further, retaliation will be more broadly defined. In respect of alleged detriment (be it an act or omission) caused to a person because of the making of a protected disclosure, the employer will have to prove that the detriment complained of was not in retaliation for, or because of, the person having made a protected disclosure.  Administration and staff Confidentiality regarding whistleblowing must be respected by all reporting systems and access to data by non-authorised staff prevented. For staff who are authorised, appropriate training must be given in respect of the handling of reports. Finally, records must be kept of all reports, as well as ensuring follow-up and feedback regarding these reports within certain timeframes.  Blending culture with policy The required process management will mean that many organisations will need to implement issue management systems. Simply having a policy and process in place isn’t, however, going to be an encouragement for nervous employees. Creating a culture in which people feel safe in speaking up—and feel that their concerns are welcomed—is far more important.  So, in addition to having a sound policy and process in place, what other steps should employers consider? Here are seven recommendations: Train managers and team leads to recognise when an issue could be a protected disclosure and, most importantly, to receive reports of potential issues in a calm and welcoming way. Word can spread very quickly about managers not being open to bad news. Think about how whistleblowing is discussed in the organisation and consider whether it is healthy or whether the narrative needs to be changed. Any pejorative language in connection with whistleblowing or speaking up needs to be identified and stamped out. The focus must be on recognising that people who bring risks to our attention are doing the organisation a great favour. It is worth highlighting that research demonstrates that the people who blow the whistle tend to be the most loyal employees who care greatly about the organisation. Ensure that the confidentiality regime is well- communicated and respected so that employees can be confident their identity will not become known if they disclose an issue. Do not become complacent if the whistleblowing policy is not used—rather than indicating a spotless organisation, it could be signalling a poor work culture where people either fear speaking up or just don’t care enough to bother. Remove any ‘good faith’ requirement from policies. The focus should be on the issue reported, not the motivation of the person reporting. Furthermore, there is no ‘good faith’ obligation under Irish or UK law or the directive. Make sure that penalisation is not tolerated. State this clearly in the whistleblowing and speaking-up policy, making sure there are clearly defined processes for reporting claims of penalisation and for following up on claims of penalisation. Provide feedback to a discloser on any action taken in response to their disclosure. The ability to do this will depend on the nature of the issue and the rights to confidentiality of other parties. At the very least, a discloser should be reassured that their concerns have been dealt with appropriately. It is likely that most organisations will need to overhaul their whistleblowing policies and processes in response to the Protected Disclosures (Amendment) Act 2022. The requirements may seem daunting, but help and advice on good practice is available. The benefits are clear, not just in terms of risk management and protection of brand and reputation, but also for the common good.

Brendan O’Hora reports on the findings of the 2022 All-Member Survey Research is conducted to discover new information or reach a new understanding of something, so the Institute’s biennial membership survey is crucial. These have been two years of significant change, and as a membership organisation, it has never been more important for us to act on the findings in a comprehensive, targeted way for the benefit of 31,000 members globally.  The survey was conducted in May and June with over 1,800 members by independent research agency, Coyne Research. This level of participation helps us to build a very accurate picture of the member experience and is much appreciated. It allows us to make the most of this opportunity to check in with members, and to ascertain how we will respond and act on the findings.  This year, we also conducted qualitative research via eight focus groups. This exercise gave us a deeper understanding of member sentiment and reinforced that we are operating in very unusual times.  The operating environment The pandemic may be in retreat, but its effects persist. An ongoing adjustment to hybrid working, declining levels of resilience after extended periods of pressure, and changing priorities among younger members, many of whom qualified or spent their early years in a virtual environment, have had an impact. Compounding this are growing cost-of-living pressures.  The top challenge emerging from the survey for businesses was, unsurprisingly, the competition for talent, up significantly on 2020. Following this is inflationary pressure and increased labour costs. What is resonating with members  Looking at our membership as a whole, the qualification is very highly regarded and a source of great pride. The letters mean a lot to our members, and that pride also extends to the robustness and quality of the education provided.  In reviewing the findings, Bernie Coyne at Coyne Research noted that members are broadly positive about the way the Institute has responded over the last two years to the pandemic.  She said: “As in previous years, members were invited to rate a range of services, based on their experience and degree of satisfaction, with sentiment remaining consistent. Over seven in 10 members rated the webinars and online CPD options as good, with a 20 percent increase in those who experienced them since 2020. The range of specialist qualifications was also rated highly, as was Accountancy Ireland magazine, the weekly Tax News circular, and the knowledge hubs on the Institute’s website.”  The research also pointed to an increase in the number of members who have communicated with the Institute by phone and email since 2020. Roughly seven in 10 rate their experience in communicating positively. While there was strong uptake of the virtual alternatives on offer during the pandemic, there is confidence in returning to face-to-face events. Indeed, the research points to a desire, particularly among younger members, to engage and learn about how they can make their membership work for them and derive the greatest value from it.  Consistent with many of our peers globally, we have seen drops in key member metrics, such as satisfaction and relevance as well as likelihood to recommend the qualification. While, unsurprising, given these unusual times, it is an important alert for the Institute that is already prompting action.   How we are responding to the findings In a changed external environment, and armed with considerable insights, our challenge now is to reposition how we engage with members, with a particular focus on younger members at the start of their career, to optimise their experience of the profession. We are working closely with the Chartered Accountants Student Society of Ireland (CASSI) and the Young Professionals Committee in so doing.  Our members are some of the strongest advocates for the profession, and, at a time when there is a continuing shortage of qualified accountants, it is incumbent upon us to ensure the membership experience is a positive, rewarding, and relevant one for these most important advocates.  One of the ways we will be doing this in the coming weeks and months will be through a campaign to put the tools into members’ hands to make their membership work for them. It will feature real members speaking about how they’ve made the most of their membership and will be accompanied by an updated member section on the website to help users better access and understand what is available, from membership details to Continuing Professional Development, conferences, social events, and supports. Our focus is on giving more control of their experience to our members, so that this experience can be tailored and made to work for the individual.   In closing, I want to return to a theme I touched on at the outset—resilience in the face of sustained pressure. One-in-two respondents reported that COVID had a negative impact on their mental health, compared to 2020. Younger members were less likely to be aware of the Institute’s member support service CA Support, and we will be working to increase awareness of this important resource.  Brendan O'Hora is Director, Members, at Chartered Accountants Ireland

Jennifer Nickerson left a successful career in Dublin to co-found a whiskey distillery in rural Tipperary. She tells Accountancy Ireland about her inspiration, ambitions and lessons learned along the way When Jennifer Nickerson co-founded Tipperary Boutique Distillery in 2014, the Aberdeen-born Chartered Accountant had already risen through the ranks at KPMG in Dublin to become an associate director in the tax department just seven years after joining as a trainee. Tipperary Boutique Distillery is now exporting worldwide and employs seven people in south Tipperary with further plans for expansion. Here, Nickerson tells us about what inspired her move into entrepreneurship and her experiences establishing and growing a small business with global reach. Q: Tell us about your life and career prior to co-founding Tipperary Boutique Distillery—what prompted you to become a Chartered Accountant? I grew up in Scotland and my dad, Stuart, was a master distiller. He managed and worked as a consultant for some of Scotland’s best scotch producers, such as Glenfiddich, Balvenie and William Grant & Sons. You could say I grew up in the industry. I loved it, especially the passion the people working in it had. I went to college in Edinburgh for six years, studying Veterinary Medicine initially and then switching to Accountancy. I decided I didn’t want to work outside in the cold and wet.  I wanted to work in an office and I had this perception that a job in accountancy would be “nine-to-five”.  I was wrong about that, but after meeting my husband Liam and moving to Ireland to train, I found I really enjoyed the problem-solving aspect of the work. Numbers make sense. There is a “right answer” and that can be very satisfying.  I worked in the tax department at KPMG and did a lot of advisory work. The hours were long but there was great camaraderie and that makes for a really nice working environment. Q: So you had settled into this new career in Dublin and you were enjoying it. What prompted you to up sticks and move to rural Ireland to set up a whiskey distillery? I married a farmer—but I did tell him that I wouldn’t be moving to Tipperary unless there was work there that would interest me as much as what I was doing with KPMG in Dublin. We talked it through and my dad had already mentioned during a visit to Ballindoney, Liam’s family farm near Clonmel, that it would be the ideal setting for a whiskey distillery. We could grow grain, we had the land to build a distillery on, there was good quality water in Tipperary and good conditions for maturing whiskey as it’s a little bit warmer than Scotland. He really just mentioned it in passing, but it struck a chord. I’d had lots of experience putting together business plans and I was lucky that Liam had a steady job working for the county council. It was a calculated risk and we could afford to do it, so we went for it. Q: What was your vision for Tipperary Boutique Distillery starting out in 2014? Ultimately, we wanted to produce a world-class whiskey from grain to glass here on Ballindoney Farm.  We knew we had everything we needed, but we also knew it would take time, because distilleries are expensive and there is also the cost of laying down spirit for at least three years before it can be sold as whiskey. It wasn’t until 2020 that we finally had the funding raised, the facility built and the equipment installed to open our own distillery. We had started outsourcing Irish whiskey casks from other distilleries cut to bottling strength with water from our farm and released our very first expression way back in March, 2015.  After that, we started taking our own grain from the farm, having it malted and distilled by my dad at other facilities. Now, we are able to do everything apart from malting here in our own distillery. We grow our own grain, we mill, we mash, we ferment, we distill, we mature and we bottle here on the farm.  Q: Tell us about your markets? What countries do you sell to and where do you have the healthiest trade? We sell into Belgium, France, Canada, into several states in the US, and a little in Korea and Singapore. We were selling to Russia, but obviously not any more, and we were in discussions with distributors in Ukraine and Poland, but the impact of the war has scuppered both. Germany is our biggest market, Italy is great, and Belgium is a surprisingly steady little market as well.  In Ireland, we sell online ourselves at tipperarydistillery.ie and through Irishmalts.com, James J Fox, The Celtic Whiskey Shop, and through local retailers around the country. Q: What was it like moving from a successful career as a tax advisor in a Big 4 environment into the cut and thrust of entrepreneurship? Was it a good experience? It was massively humbling to be honest, but also incredibly rewarding. At the start, I did miss having colleagues to talk to and bounce ideas off. I really felt I was on my own and it took me a while to find my feet. My background in accountancy definitely helped a lot with the ‘form filing’—understanding bills and applying for licenses, things like that. At the same time, there were lots of things I didn’t know about, like where to get a barcode or source seals for bottles. It was a massive learning curve. Q: What are the most important lessons you have learned so far running your own business? I had no idea starting out how vitally important sales are. That sounds like a ridiculous statement, but it took a long time for me to shift my mindset away from numbers and deadlines to just getting out there and going after sales.  What I know now is that you can’t give up. It’s no good just sending out an email to a potential customer and waiting for them to come back to you. You have to keep trying and telling literally everyone you can how great your product is and why. That can be really hard because it’s very different to sitting in front of a computer as an accountant and working to a deadline. You have to be willing and able to stand up on a stage and say, “this is what we’re doing, we’re amazing and our product is the best”.  There is a theory that 80 percent of all sales in any business come from 20 percent of costumers. Based on my own experience, I’d have to agree with that. There’s really no point in chasing one-off sales. It’s far more important to focus on valued relationships than driving around trying to get a bottle into every bar in the country. On the other side of the coin, you have to chase your bills just as much. If you’re not getting paid, you’re in trouble. Q: How has the COVID-19 pandemic and the more recent war in Ukraine affected your business and how have you responded? As soon as the Pandemic hit, our orders from overseas plummeted. We had two pallets due to go to a distributor in a country that was very badly impacted by the pandemic and they ended up having to wait six months to take delivery. Irish people are brilliant though. They started buying more Irish whiskey during the pandemic and that really saved our business. Russia’s invasion of Ukraine had a massive impact as well, because it caused major supply chain issues for us and other producers. We had to change our glass suppliers, and we had really big delays with cork supplies, the capsules for the top of the bottle seals, cardboard for packaging deliveries—you name it, everything was disrupted. Most of our suppliers I tried to keep, because we have good relationships with them and that’s really important in business. We were also probably lucky that we are quite a small operation, so we have been able to adapt more quickly than bigger producers. Q: The Irish whiskey industry has grown enormously in recent years—do you think there is room for further growth and what are your own plans from here? When we started back in 2014, there were something like six craft distilleries in Ireland, but by the time our own distillery was up-and-running in 2020, the number had risen to around 40.  The market grew so much in that time. There is a lot more competition now and a lot more diversity in the sector, but there are also a lot more customers buying Irish whiskey in Ireland and overseas. I think there is still scope for some growth in the market. Forty distilleries sounds like a lot, but Scotland has around 100. What we are seeing is that, as the market matures, there is less focus on cost and greater focus on quality. Each producer has to know their niche and communicate it well to the marketplace. For Tipperary Boutique Distillery, our plan now is to continue to sell in Europe, and expand our presence in America and Asia. We want to continue to grow sustainably and one day—hopefully soon—open our own visitor centre at our distillery here on Ballindoney Farm.

Wavering over support for Ukraine’s defence against Russia is not an option. The stakes are too high for Europe’s stability and unity, writes Judy Dempsey Russia’s war against Ukraine is approaching its tenth month. Despite Russian President Vladimir Putin’s original aim of conquering Ukraine within days after his 24 February invasion, Russian troops have been forced to withdraw from strategic areas in eastern Ukraine.  It’s too difficult to speculate how and when this war will end, but there is already a sense of war fatigue among some governments and political parties in Europe and the United States—ignoring the fact that Russia has been escalating this war over the past few months and Ukraine must continue to fight for its independence. There is even some suggestion that Ukrainian president Volodymyr Zelensky should be persuaded to negotiate with Putin.  This would be a mistake.  Understandably, several EU countries—especially the Baltic States, Poland, the Czech Republic and Slovakia—do not trust Putin’s intentions. They want Ukraine to continue regaining occupied territory and then negotiate from a position of strength. This kind of victory for Ukraine would have several outcomes for the region and the EU. A Ukrainian victory could deter Russia from spreading its military and political influence in Moldova, Georgia and Armenia. Such a victory would be a fillip to pro-European political movements in these countries.  As for Belarus, there is little chance that the political future of Alexander Lukashenka, who has imprisoned many Belarussians since their failed uprising over two years ago and repressed any kind of opposition, would survive.   A Ukrainian defeat, on the other hand, could encourage the Kremlin to extend its influence over Eastern Europe and consolidate Lukashenka’s regime which would, in the short-term, increase his grip on power. In the long term, this ‘stability’ based on repression would lead to instability.  In short, a victory by Ukraine could increase the stability of Eastern Europe. A Russian victory would lead to instability in the region. As for the EU, a return to Russia exerting its political and economic influence over Eastern Europe would have several consequences.  First, it would lead to new divisions on the European continent.  Second, as many EU countries have taken in Ukrainians, an unstable Eastern Europe would lead to new flows of refugees. Populist movements could exploit such a development.  Third, it would lead to deeper divisions inside the EU. The Central European countries would oppose any negotiations that would allow Putin to save face. Germany and France might be tempted to restore relations with the Kremlin—indeed, neither Berlin nor Paris have called unambiguously for Ukraine to win this war.  Fourth, given these differences, it is hard to see how the EU could ever agree to a strong and united foreign, security and defence policy. Russia’s war against Ukraine has exposed the level of distrust between the Central European and big EU member states. Small EU countries matter. Perhaps, for example, Ireland, Finland and Denmark, could form coalitions of the willing with the Central Europeans to maintain political, military and economic support for Ukraine.  Wavering over support for Ukraine is not an option. The stakes are too high for Europe’s stability and unity. Judy Dempsey is a Non-Resident Senior Fellow at Carnegie Europe and Editor-in-Chief of Strategic Europe

Attracting, retaining and upskilling their people will be a top priority for Ireland’s chief financial officers in 2023. Colin Kerr reports As Irish businesses approach another year of uncertainty, Ireland’s chief financial officers (CFOs) are looking to workforce upskilling as a major “investment opportunity” in the 12 months ahead. The latest Deloitte CFO survey benchmarked the sentiment of 1,151 CFOs in 15 countries in Europe. Published in mid-November, the bi-annual survey sought the views of 75 senior finance executives in Irish business, in sectors ranging from construction, healthcare, and manufacturing, to retail, tourism and transport.  Seventy-two percent said upskilling was a major priority for them currently, while 96 percent identified attracting and retaining skilled talent as one of the biggest risks they would face in 2023. “This outweighs their assessment of other risks, such as the economic outlook for Ireland, the geopolitical outlook, supply chain logistics, and cyber risk,” said Danny Gaffney, Partner, Deloitte Ireland. “The survey also highlighted the point that a lot of CFOs are recognising the multiple benefits of upskilling at a macro level. As Irish businesses upskill their teams, it creates capacity within those teams and CFOs see the importance of that given the constrained talent market.” Businesses in Ireland are refocusing their workforce policies and planning talent attraction and retention, according to Deloitte’s findings. Eighty-five percent are looking at rolling out flexible working patterns, while 69 percent are reviewing their reward offering.  Sixty-eight percent, meanwhile, are investing in wellbeing and assistance programmes, and 59 percent are investing in sustainability initiatives, such as measures to reduce their carbon footprint. “Wellbeing and assistance programmes are actually getting leveraged to a greater degree. Going back to the hybrid discussion, the usual supports that are available onsite are not always available when you are working in a hybrid environment,” said Gaffney. “Having in place good wellbeing and assistance programmes is very useful to organisations in the hybrid environment where CFOs and their teams are not as well-connected as they would be onsite.” Gaffney advised that CFOs put a clear strategy in place when considering how best to upskill their team. “What we need are practical solutions where team members continue in their roles and can upskill around the working day, either in person or online,” he said. “At Deloitte, we are working with clients to help them meet this challenge, including an increasing focus on digital technologies. Personally, I would encourage CFOs to look at training as a better use of their internal capital than focusing on external resources, as a means to allow them to do some of the challenging things they are not doing at present.” The pursuit of digital finance strategies is one of the challenges facing CFOs. Upskilling existing employees can help to meet this challenge. “Getting upskilling right is essential. If you don’t get it right, it falls by the wayside and the business, the CFO and the internal teams all lose out as a result,” said Gaffney. “The biggest trap CFOs can fall into is making upskilling too complicated. The three pillars I would identify are: Show, Support, Assess. CFOs need to be sure the people on their teams are getting the specific training and development they need.” Communication is equally important, as is commitment, according to Gaffney. “It is a two-way street and both the CFO and their team need to be open, upfront and honest in advance of committing to training and upskilling,” he said.  “The business needs to understand the team motive and the individual team members, who are being upskilled, need to understand the business motive behind the process. Commitment is also key because—if we are talking about businesses trying to generate capability to create business value going forward—they need to be committed to ensuring the right conditions are in place for their teams to excel during and after the upskilling.” The growing trend towards hybrid working among businesses in Ireland offers its own potential opportunities. “Remote and online training is much more commonplace now than it was two or three years ago,” said Gaffney.  “With hybrid working, the big challenge a lot of businesses and organisations have faced, and continue to face, concerns connectivity. They can say, ‘we mandate you to be in the office on particular days each week,’ and that can lead to a reaction that may be very negative.  “On the other hand, there are workplaces that are more employee-led in terms of when people are required to come into the office. The challenge in this scenario is that these employees can feel disconnected from the organisation.  “Training is a brilliant way to make people feel connected. When training is made available to me through work, I feel that I am valued and more aligned to my role. This is because I can see that both my organisation and I understand what it takes for me to be successful.” The foremost challenge for many organisations is their CFO’s capacity to “absorb costs”, both new and existing, Gaffney said. “Rates of inflation will remain higher for a longer period of time, as the cost of debt rises and the appetite for risk declines, and organic growth is more of a focus for the CFOs over merger and acquisition (M&A) activity. “Reducing M&A activity may seem like something CFOs would look to do, but they should look at longer-term investments to mitigate current risks.”

To get ahead in digital transformation, companies must embrace cloud technology—and the CFO has a key role to play. Donal Óg McCarthy explains why Successful companies have long had a common trait—resilience. Surviving and thriving in these current, very uncertain, times makes this resilience more necessary than ever.  Companies are being forced to reimagine their businesses, often through changes to their technology estate. Why? Some want to automate processes, scale capacity, and create new growth opportunities. Others are simply seeking the cost savings and greater efficiency needed to bring their enterprise spend under control. While some enterprises have risen to the occasion, others have struggled, and as leaders emerge, there is a common thread that unites them—they are embracing the power of the cloud as the foundation of the digital core, which is key to business reinvention. The hard truth, however, is that many in the boardroom are feeling underwhelmed by their company’s cloud experiences to date, leaving leaders wondering why new ways of delivering and consuming IT services have fallen short of expectations.  From the chief executive’s perspective, the accelerated innovation might not have happened at the desired pace. More control and better governance may have proved elusive for the chief operating officer. The chief technology officer could still be waiting for the technology to deliver on transformation. The chief financial officer (CFO), meanwhile, may be wondering why there is no sign of a boost to the bottom line. While the significant benefits to be gained from cloud technology remain, leaders’ experiences have, in many cases, been tarnished by the challenges they have experienced along the way. What has become clear is that success in adopting cloud calls for a new type of boardroom mindset—and a conversation that goes far beyond the technology itself.  And while finance leaders may recognise the potential of the cloud, they are not always equipped with what’s needed to realise the full benefits.  A study carried out by Accenture in 2021, The Cloud First CFO, found that 32 percent of CFOs regarded a lack of cloud skills within the finance function as a major barrier to doing their jobs. In that same year, 35 percent of the global executives polled by Accenture in its 2021 research, How to Unleash Competitiveness on the Cloud Continuum, highlighted a misalignment between IT and business as one of the top pain points in cloud adoption.  Unleashing the potential of the cloud Although the cloud landscape continues to undergo a fast-paced evolution, many organisations still struggle to generate maximum value. No matter what industry or area of the business you work in, adopting cloud services as a core part of your overall business strategy is the first step toward gaining a competitive advantage. The value case for the cloud must be examined in a more holistic way, moving beyond the financial lens and looking at areas such as sustainability, better customer and employee experience, talent re-skilling and innovation—all of which will deliver ‘360-degree value’. CFOs can quickly build on their own function’s experience of digital transformation to unlock more strategic priorities using better data-driven insights and forecasting to support the business.  CFOs are also uniquely positioned to significantly influence the technology choice and direction that will enable business strategy. Accenture’s Global CFO Research, Catalyst of the Future Corporate Value, indicates that 73 percent of CFOs are retooling finance with the latest technology for the specific purpose of extending influence across the enterprise. At the same time, finance teams might be disappointed to discover that the potential of the cloud to make expenditure more predictable is by no means guaranteed. The reality for many organisations is that complex consumption plans from big vendors, and prices that keep changing, often result in runaway costs and ‘bill shock’.  Optimising value and performance, and successfully transitioning from capital expenditure to operational expenditure models, requires a different mindset and a cultural shift across the entire organisation. Adopt a Cloud FinOps approach The new financial management discipline Cloud FinOps—shorthand for ‘cloud financial operations’—involves bringing greater financial accountability to managing the variable spend model of the cloud. It is a methodology that advocates for a collaborative working relationship between technology, finance, and business teams, resulting in the iterative, data-driven management of cloud spending.  When closer collaboration has been established under the Cloud FinOps umbrella, unit economics and value-based metrics demonstrate business impact. Teams begin taking accountability for cloud usage/cost and become empowered to manage their own usage in line with their budget.  Enterprises of all shapes and sizes are being asked to evolve their cloud organisations to adapt to this new financially focused mindset. This will drive business value through their cloud estate, especially as they increasingly seek to go ‘cloud native’ and utilise multiple cloud service providers.  With the right processes, capability and tooling in place, an organisation’s spend on the cloud can be significantly reduced and wider qualitative benefits unlocked. These benefits can improve the organisation’s competitive position in the market through increased speed to market, on-demand scalability and employee engagement.  Build your cloud fluency  For CFOs, this is evolution rather than revolution. It’s not about finance people mastering technology, or tech teams starting to become finance people. It is about a meeting of minds and closer collaboration, understanding each other’s motivations and complementing our respective skills.  All of this is achievable with a FinOps capability set up at the centre of the organisation. With real-time visibility of cloud expenditure, IT and finance can work together and become more proactive, identifying potential overruns before they become an issue.  This structure can also bring better governance to the wider organisation, helping develop a culture that empowers other business teams to take ownership of their decisions and understand the cost implications.  Top of the agenda for the CFO is to make sure they have a key role in driving the cloud journey. They must be directly involved with cloud adoption—not just making sure the numbers add up, but also learning about and understanding the cloud. No one expects high levels of technical expertise, but the CFO will need enough knowledge to make informed decisions about their organisation’s future technology partnerships.  Wherever possible, an organisation needs to nurture its existing talent, upskilling people to contribute to the cloud journey. This will help to ensure that everyone in the enterprise feels part of the project from the outset—always the best recipe for success.  The complexity of the cloud, however, means that internal skillsets will need to be supplemented with external expertise. Be prepared to forge partnerships with third parties who understand your business and can provide a good cultural, as well as technical, fit.  Cloud journeys might appear long and complex at the outset, but with a new boardroom mindset and cross-department collaboration, cloud value can become eminently attainable and a critical enabler of business transformation.  Make the leap, take the lead Leaders in enterprise technology have extended their advantage in the last few years by doubling down on their investments with a more aggressive cloud-enabled technology strategy.  There is a new group emerging, however, that is outpacing its peers by re-platforming to the cloud, adopting an innovation-led mindset and expanding access to technology across functions. These organisations are leapfrogging their competitors and breaking through previous performance barriers to get ahead.  This group does so by moving to the cloud at scale, with computational flexibility and strategic agility enabled by the world-class technology capabilities of cloud service providers. Virtually overnight, you can accelerate software development cycles, change business processes, and build new capabilities into your organisation. Crucially, there will also be more opportunities to innovate and experiment—something that was difficult in the past when resources were focused on firefighting and supporting ‘business as usual’.  Look at the process holistically: the multiple steps now involve getting to the cloud, utilising the power of the cloud, and operating across the cloud continuum, offering a range of capabilities from public to private to edge computing. This reframing allows you to flip IT budget spend and put more into innovation-related activity than operations.    By expanding access to technology across different business functions, organisations can focus on widening business priorities, touching on issues like employee reskilling, well-being, and sustainability.  Ultimately, taking the lead in cloud adoption will catalyse change adoption, advance digital transformation, and promote growth through innovation. The three As for cloud success The differentiating factor among cloud leaders is their focus on three things when it comes to their teams—alignment, adoption and ability. Alignment With a shared strategic vision across the c-suite, and alignment in execution between IT and the business, companies will be able to move faster in the race to the cloud and derive the most value. Ability By building up leadership competencies, upskilling and recruiting talent, and by ensuring digital fluency skills trickle out across the whole enterprise, a culture can be created to drive continuous learning and keep the business at the leading edge. Adoption Having re-platformed in the cloud, reframed the business through the optics of FinOps, and extended its reach with new scale and agility, the door is open for adopting new ways of working and innovation practices that will make the business more resilient.