Differences divide us, and that’s why we need to find the values that unite us, writes Sinead Donovan. It strikes me that, in today’s world, we are constantly putting labels on things or people. We are either male/female, Gen Z/Gen Y, baby boomers, LGBT+/straight. We have the labels of our culture or our creed, and while I am so in favour of diversity, and have pushed the diversity and inclusion concept incredibly hard within my firm and throughout the work I have done in Chartered Accountants Ireland, I sometimes wonder – have we made too many labels? Are we defining ourselves by labels rather than looking for the commonality and the thread that keeps us all together?   It’s not a new concept but, as perhaps I progress in my career and through management, I sometimes think it’s better to look for what binds us together than at what differentiates us. Maybe by finding those common threads it will enable us to be a more holistic family together, despite our gender, culture, religion, or sexual orientation.  So, I suppose the big question is: are there common threads and, if so, what are they? To me, it comes down to people’s beliefs. Fundamentally, underpinning us all, as it does in our professional careers, are the value sets that define us. For us, in our business unit in Grant Thornton, we have identified those values as: Adaptable; Innovative; Passion for what we do; Collaborative; Going the extra mile; Ethical and professional; and Technically knowledgeable. People may have different values they use to identify themselves, but whatever it is, there should be that common link in us all. With Chartered Accountants, it has to be the value set of ethics. These underpin our profession, despite how wide it has become or the labels we have put on each other as accountants: are we forensic accountants, cybersecurity accountants, auditors, tax advisors? Whatever you are, the one item that underpins us all is our code of ethics.  Ethics is taught in the early days of a student’s profession, sits beside us as a professional, and maybe gets looked at once or twice in our career. However, I would urge that the concept of ethics is used more widely to link us together as one family of accountants – be that Chartered Accountants Ireland, ATI, or membership to any other accountancy body. We have a responsibility to our stakeholders, the people we report to, the people who use our knowledge, and the daily work that must be done in an ethical manner.  As a member of the Diversity & Inclusion Committee in Chartered Accountants Ireland, I am not saying any of the above to absolve ourselves of the need to identify the differences we all face in life. But what I am saying is, maybe sometimes, let’s just celebrate our similarities and, with that, see ourselves as a family of accountants in the first instance and then ensure any differences that we may have are 100% noted, understood, managed and included because, just as in any family, there are different characters, beliefs, and personalities. And, while there are going to be difficulties, there has to be that underlining acceptance of who we are and what we are. To me, it starts on the journey as a student and, I think, that our profession is more open than it may have been when I started. However, I do know that from our work in CA Support, difficulties, prejudice, and unbelievable stress which may not be acknowledged or identified, remain. So, look out for your student members, your newly qualified members, and even look out for the more experienced members who may be going through difficulties in their professional or personal lives. If I can leave you with one thought, let it be this: let us identify the differences, ensure those differences are respected and brought together in one bucket of inclusion. Importantly, we need to unite in our underlining similarities that we have as Chartered Accountants and use that as a thread to tie us together.   Sinead Donovan FCA is a Partner in Financial Accounting and Advisory Services at Grant Thornton.

For most, figuring out parenting and your career is difficult. It can be even more so if you are an LGBT parent. Peter Keenan-Gavaghan explains how the support from his organisation enabled him and his husband to make the leap into parenthood while growing his career. Balancing a career and a family is always a juggling act. However, when your family does not fit the traditional model, it can also prove to be a minefield for all concerned, especially at work. Societal expectations of parental roles, parental names and second glances are only a few of the factors that need to be thought about before LGBT people become parents. Despite having made the decision to have children early in our relationship, it took my husband and I eight years before our son arrived into the world. With both of us being working professionals, the process of family planning started in the traditional way: how do we balance parenthood, careers and our relationship? We quickly realised that we also needed to consider society. In the end, some of it came down to practicalities, and some came down to our own values, preferences and external supports.  Parental leave One area we had to consider was managing early childcare. My firm gives enhanced paid parental leave regardless of gender and this played a big part in our decision that I would be the stay at home dad for the first seven months of our son's life, with my husband returning to work on a reduced work week. Without the seven-month paid parental leave from my firm, our family would be much different position starting out – and certainly disadvantaged compared to mums going on leave. It’s important that not only the people in an organisation are supportive to LGBT families, but that the support is reflected in the HR policies and procedures. Creating a network We always knew we would need to navigate the potential assumptions from colleagues and clients that there is a ‘mum’ at home. We quickly realised that if social assumptions were to change, we needed to be proud of our family, and not place each other back in the closet. Having same-sex parents is nothing new in Barclays. Indeed, when we were investigating how we would become parents, one of the first ports of call was Barclays LGBT network, Spectrum. There we got a greater understanding of fostering, adoption and surrogacy. The network also holds regular talks on ‘non-traditional' parenting to educate colleagues on how they can become parents and continue to build their career. While nothing would have stopped my husband and me from having our son, the information and support gained from the LGBT network in my organisation eased the process for us (as much as to-be parents can be eased when planning for their first) and normalises families like ours to colleagues and clients. Before going on paternity leave, my team did the traditional baby gift presentation and I was invited to expectant parents’ events. This not only showed support but also demonstrated inclusivity. Talent retention What I have found since going back to work is that I have become more focused and flexible. Because Barclays gave me the information on parental leave, the precious first months with my son, and the flexibility to alter my working hours to the typical parent’s life without judgements or assumptions, they have retained a committed employee and have helped create a happy family. Peter Keenan-Gavaghan is Vice President of Barclays Internal Audit – RFT & Functions Technology.

Before COVID-19, sustainability policies were nice-to-have. Now, Johnny Meehan argues, they are essential to rebooting Ireland’s economy. Last year, Ireland declared climate and biodiversity emergencies in response to an urgent crisis. Before COVID-19, the way we worked and lived was unsustainable. The old normal was an economy where GDP went up but so did carbon emissions, social inequality, the destruction of nature, plastic pollution, food waste, time wasted in the daily commute and stress from quality of life issues. This crisis is an acid-test of preparedness for how we handle large systemic challenges. Some individuals and businesses have excelled in protecting their employees, customers, and communities. They are continuing to deliver their products and services, altering their supply chains, and going beyond what is expected for good social outcomes. At both an individual and organisational level, the following questions came into sharper focus: What is my purpose? Why does this business exist? How can my work make the world a better place? We must take this unique opportunity to reinvent what we do and how we do it. What do you stand for? This realignment process starts by establishing what you stand for, the purpose of your organisation, and who you serve. A dialogue with stakeholders will help you to define your purpose statement, which should be about more than earning profits and delighting customers. Keep it real, and make it connect with a social and environmental cause. Make it meaningful Next, write more detailed policies for sustainable business. Be ambitious, set meaningful goals with principles and ethical guidelines for how you do business. This is part of good governance. In times of crisis, what structures will improve decision-making next time round? (e.g. more diverse board, more inclusive stakeholder process, etc).   Connect finance and sustainability A plethora of finance-related developments are challenging companies to make clearer connections between financial performance and sustainable outcomes. For example, the EU classification system for sustainable activities (the EU taxonomy) encourages a step towards facilitating sustainable investment. Be a sustainability practitioner Sustainability is not a standalone area or policy; it should be synonymous with everything the business does. Sustainability is about taking action and implementing policies through a range of sustainable business practices across all organisational functions and measuring performance using new indicators of success. Everybody is a sustainability practitioner, especially accountants who have the right skills to measure impacts and disclose results. Change your assumptions about risk and the future. We responded to COVID-19 as a true emergency, as if our houses were on fire. The climate and biodiversity emergencies and problems in society demand a sustained call to action. We must reboot the economy but in a fair, inclusive and low-carbon way. Johnny Meehan is an Advisor at Business in the Community Ireland.

The Irish economy has taken a blow because of the pandemic. How can we go about restoring it? Foreign Direct Investment is an important key to recovery, argues Thomas Sheerin. COVID-19 has had a severe impact on the Irish economy. Activity and employment have dropped sharply and this is expected to continue for some time. As Ireland begins its recovery, the Foreign Direct Investment (FDI) sector will play a significant role from an employment, activity and financial contribution perspective. Continued and sustained investment in multiple sectors such as technology, pharma, medical devices and financial services will greatly assist the rebuilding of our economy. FDI’s contribution to the Irish economy has been significant, with over 1,200 overseas companies directly employing over 200,000 people. In addition, FDI contributes significant tax revenue and generates commercial activity across the wider economy. FDI drives investment in research and innovation, with strong linkages to Irish third-level education institutions. During the pandemic, many FDI companies engaged in the production of hand sanitizers, ventilators and vaccine research. These positive contributions will prove more valuable than ever as Ireland emerges from a substantial economic downturn. In particular, the local impact of FDI and its links to domestic businesses will assist recovery across the country. The key attributes that have assisted Ireland’s success in attracting and retaining FDI remain very strong. These include a skilled workforce, a competitive business environment, a strategic location, EU membership and a competitive stable tax regime. Notwithstanding the current challenging economic climate, continued success in the FDI space is reflected in recent job and investment announcements from Bearing Point//Beyond and Udemy. Overcoming the challenges As the COVID-19 situation continues to evolve, businesses are feeling the human, social and economic implications. Businesses must continue to manage and mitigate the disruption that COVID-19 brings to every aspect of their operations. From working with our clients, it’s clear that key challenges arise in the areas of supply chain, travel, workforce and tax, trade and regulation. The effects of COVID-19 are particularly felt by organisations dependent on supply chains for products and materials. Businesses have been forced to act quickly to map their entire supply chains. This provides the visibility and information needed to make critical decisions in real-time and to identify alternative supply chain strategies. From a workforce perspective, new employee welfare and engagement challenges have emerged. Technology needs to be adopted quickly to ensure that teams can work remotely while staying connected and productive. Returning to the workplace needs to be managed effectively with clear processes in place – early engagement, clear communication and provision of alternative working arrangements are key. As a small, open economy, travel plays a fundamental role in how FDI investment is secured, sustained and developed. COVID-19 restrictions have brought international travel to a standstill, presenting a significant challenge for FDI. However, proactive adoption of technology and utilisation of video and web conferencing technologies has enabled the necessary connections to continue to take place during the pandemic. COVID-19 has brought additional complexity and risk from a tax and regulatory perspective. This requires FDI businesses to consider the broader economic, political and societal context in which they operate to ensure informed, tax compliant decisions are made which drive the business forward. While the economic outlook for Ireland has changed dramatically in recent months, the road to recovery is underway. Similar to our emergence from the 2008 financial crisis, FDI should  prove to be a key feature in that recovery. Thomas Sheerin is a Tax Director in PwC.

How can we safeguard our economic future through digital opportunities? By investing now, we can create a better Ireland going forward, says Erik O’Donovan. Digital tools are essential services to our economy and society. They have enabled us to connect, work, study, shop, and access public services in these challenging times. Digital tools and data are even assisting and enhancing healthcare provision during this public health emergency. Ireland had made progress in its digital development going into the COVID-19 crisis. However, some gaps remain in our relative readiness to access and adopt existing and emerging digital opportunities for future growth and well-being. Accessing these digital opportunities has been a challenge for some, while the attainment of digital skills and bridging regional digital divides have grown in importance. The ambition of the National Broadband Plan and opportunities presented by 5G technology must be realised. Criminal elements have also sought to exploit the crisis using digital tools, underlying the need to preserve trust and protect our essential services, businesses, and people online. Finally, this emergency has shown the value of government, agencies, businesses and citizens working together, both at home and internationally, to drive positive change in difficult times. A digital recovery plan Our economic future is intrinsically linked to the ability of our health and wider governance systems to confidently model and plan for the phased re-opening of the country. Furthermore, our economic future must be robust enough for the potential re-emergence of such emergencies in the future. Trustworthy digital tools and data, used in conjunction with a suite of health measures, offer the opportunity to assist Ireland and Europe in transitioning from this emergency to providing better public services, economic growth, quality jobs and enhancing well-being. The European Commission’s COVID-19 recovery plan for the EU is based on a more digitalised Single Market and green growth. It has been estimated that, under certain conditions, a more digitalised Single Market could provide annual gains of up to €178 billion to the EU economy until 2030. Ibec research indicates there has been a business move towards more online sales (31%), coupled with greater use of remote working (73%) and increased investment in technology (42%), pointing to a more digitalised way of conducting business in the future. So, how should Ireland ensure it is at the forefront of this digital future? Given the scope of the challenge, the government should appoint a Minister dedicated to digital affairs to work with national and EU stakeholders and drive a coordinated approach to our further digital transformation. Protect services, business, and citizens, and preserve trust online. Ensure national cybersecurity and data protection capabilities are adequately resourced. Signal and enable further digital opportunity across our economy. Deliver new roadmaps on digital and artificial intelligence. Finally, invest in supports, research, infrastructure, and skills necessary to help government, public services, businesses, educators, and individuals to lock-in positive digital developments, as well as access and adopt further digital opportunities. As James Joyce noted, “I am tomorrow, or some future day, what I establish today.” It is time to reimagine tomorrow. Read about Ibec’s Reboot and Reimagine campaign at www.ibec.ie. Erik O’Donovan is the Head of Digital Economic Policy at Ibec.

Do soft skills matter during this uncertain time? Sinead Smith tells us that productivity, prioritisation and people skills are key when it comes to an efficient transition back to the workplace. The spread of COVID-19 has dictated that we adapt almost every element of our lives. For many, the most drastic change has been in learning how to work remotely. Gone is the structure of an office, the presence of a team and the productivity pathways that we’ve so carefully laid. Instead, we are working in isolation, at makeshift desks, trying to find the same ability to focus and achieve. While it has been tough, there have been opportunities for growth through autonomous decision-making, developing relationships and dictating your own course. However, it has possibly also thrown some areas for improvement into stark clarity, with productivity, prioritisation and people skills being cited by one Big 4 firm as common struggles for employees. Productivity and prioritisation Improving productivity should be considered a lifelong process. As the demands of work and life change, so too should your productivity levels. Learning how to evolve your productivity and prioritise during challenging times is a skill worth honing and one you can draw on later to demonstrate your work style. "How do I decide what is important when everything is important?” I’ll bet this sounds familiar to you. Poor prioritisation is the single biggest threat to productivity but, once you understand how to improve on it, you will find that your stress decreases and your output increases. There are many time-management courses available, but one of the most accessible tools is the Eisenhower Matrix. Developed by 34th US President, Dwight D. Eisenhower, a man considered to be one of the most productive presidents of all time, the Eisenhower Matrix is a simple box system designed to separate tasks. Tasks are sorted into four categories: urgent and important (do immediately), important not urgent (schedule), urgent not important (delegate or postpone), neither urgent not important (wasted time – move on). Dividing the workday into these four categories provides a visual representation of where to start and where to finish. It alleviates the pressure of deadlines and enables us to give concrete timeframes for deliverables. People skills It is likely that you have already seen the importance of good communication over the last 12 weeks and it would be wise to continue to work on this. Whether managing a team, brainstorming with colleagues or liaising with clients, if you can learn to communicate effectively through the distanced nature of video calls, it can only have a positive impact on your in-person communications going forward. Consider the questions you are asking: Are they purposeful? Will they net the information you require? Listen more intently and work on your listening responses to show that you are engaged, interested and present. Make room for empathy and understanding in your conversations. When well-honed, these skills will buttress every facet of a finance career. Taking the time now to upskill in key areas like these will not only support a more efficient transition back to the workplace, but will also benefit longer term career progression. Sinead Smith is the Director for Newly Qualified Accountants at ACCPRO.

How can you best prepare for a phased return to work? Anne Phillipson outlines the five stages businesses need to take to ensure the safety of their employees and clients. The past 100-days have been unlike anything most of us have experienced in our working lives. Thankfully, we are beginning to see light at the end of this tunnel and, although the virus is still with us, it seems the efforts of the public have kept it under control. This is good news for the economy, as many businesses begin to prepare for the return to work, and aim to make up for lost productivity. However, as most business leaders have already realised, it is much easier to shut an office down than to reopen it under these conditions. The key for a successful return to work is through careful planning, clear communication, and staff training. Five stages to return to work All businesses must be able to implement measures that minimise the risk to their staff and customers, and put safety at the top of the agenda. People will be apprehensive as they emerge from lockdown, and will want to know that they can return to work safely. It is the employers’ job to not only care for their employee’s physical safely, but also create psychological safety by reassuring and informing staff that precautions are in place with their well-being in mind, and that new standards and procedures are being implemented and followed. It is important that business leaders don’t simply focus on the next few weeks – we are going to have to live with this virus for some time, and strategies that go beyond the immediate return-to-work and look to long-term change will allow businesses to realise the opportunity to build back better. The process should happen in five stages: Anticipation – the planning begins Honeymoon – people are excited to return to some sense of normality Integration – the new practices are tested and begin to embed Performance – focus is back on the business and distractions are minimised Growth – opportunity to realise the benefits of new ways of working Anticipation Right now, we are in the anticipation stage. Within this stage, there are three critical steps: Preparation: plan for reopening and specific requirements for each location. An employee survey will provide useful insights into how your employees travel to work, the distance of their commute, health issues of the employee or anyone in their household, social distancing planning of workspaces, which functions can remain remote, etc. Execution: ensure that employees and customers understand and comply with new practices. Steps here include a COVID-19 health questionnaire, return to work online training to educate employees on what to expect on their return, identify and train ‘social distancing marshals’ for each location, etc. Reopening: continuously review and improve processes during the phased return to the office. Employee/client access by location, ensuring adherence to guidelines, and ongoing communication and engagement of staff will be important in this step. Putting yourself in your employees’ shoes – understanding how they’re feeling, the messages and training they need at each stage – will go a long way to ensure your return to work strategy decreases your employees concerns while increasing your productivity and potential. Anne Phillipson is a Director of People and Change Consulting in Grant Thornton.

Your employees are your most valuable asset; neglecting them will be detrimental to your business. Dearbhla Gallagher outlines how to invest in training and development during these difficult times. As businesses face the economic effects of COVID-19, many are implementing cash management and cost-saving measures. In these conditions, the temptation may be for businesses, particularly small- and medium-sized enterprises (SMEs), to reduce or eliminate training and development expenditure. There is certainly a need to manage cash and spend carefully at this time, but extreme caution should be applied when considering cuts to training and development programmes. While there may be a short-term benefit for a business in taking such a step, the longer-term consequences may be to the detriment of the business. It is widely accepted that investing in training leads to more highly skilled employees, increased motivation, and more engaged and stronger performers. It is also important to consider the effect on employees of curtailing these programmes, right at the very time that many may be feeling somewhat vulnerable due to the current COVID-19 world. Employees are the most valuable asset that a business has; in a difficult economic environment, the flexibility, creativity and skills that employees bring can greatly assist a business in working through challenges. The longer-term benefits for a business investing in its employees are also obvious: valuing and investing in the workforce generally leads to higher retention of staff. Prepare now for tomorrow  So, how can organisations manage training and development requirements in these difficult times? Now is the time to re-assess your training methods and the delivery approach. Make greater use of your in-house experts for learning and development purposes to deliver practical and relevant content. Technology is essential in helping us stay connected. Online communication tools like Zoom and Microsoft Teams are an excellent way of delivering learning and development initiatives to remote working staff. With many employees either working from home or laid-off part time, this might be an opportunity to use the available time to focus on training and development. Use it wisely! It is also the time to consider external online offerings. Trade bodies, professional services bodies, accounting institutes and many other organisations offer a considerable range of online courses that make learning and training accessible and flexible. Some of these courses are also free. Evaluation is key Take the time to evaluate training courses and training and development needs. Consider how best to spend limited resources in the current environment. Evaluating training courses that have already been provided is also vital as this enables a business to check that staff are being equipped with the right skills and development, and that the training is value for money and aligned with the business’ strategy and goals. Stay safe while training! Dearbhla Gallagher is the Learning & Development Manager at Baker Tilly.

As public health restrictions begin to ease, how can organisations make their workplace safe for employees? Sonya Boyce outlines the key priorities that organisations must consider before staff return. Ireland has now entered the next phase of lifting the public health restrictions that were put in place to protect our nation’s health. As many employers begin to make strides towards returning to the workplace, there are a significant number of factors to consider. Update internal policies The Health and Safety Authority (HSA) and Health Services Executive (HSE) published a Return to Work Safely Protocol (protocol) as the set of guidelines and measures for organisations to follow. Compliance with the protocol is mandatory and it will be enforced by the HSA under existing legislation. All organisations must update their policies to reflect the changes required for containing and restricting the spread of COVID-19 in the workplace. It is important to circulate the updated policies to staff in advance of returning to the workplace to ensure that all employees are familiar with their obligations and the measures put in place to protect them. Having clear, up-to-date policies ensures that there is no ambiguity in your approach to dealing with COVID-19. Updates should be made to policies around holidays, sick leave, absenteeism management, people with caring responsibilities and remote working, amongst others. The protocol requires employees to fill in a Return to Work form declaring they have not been in contact with anyone affected by the virus. This form should also contain details regarding the purpose of a contact tracing log which the employer is required to put in place. Another aspect to be considered is the management of external stakeholders and customers who are on the premises, the procedure to be followed during internal and external meetings within the workplace, and the conduct in communal areas such as kitchens, canteens and tea stations. Employing a COVID-19 Compliance Officer to ensure that policy and procedure is adhered to is also an option. Maintain workplace hygiene Organisations should prioritise regular cleaning of the workplace. Ensure contact/touch surfaces such as tabletops, work equipment, door handles, and handrails are always visibly clean, and are cleaned at least twice daily along with the washroom facilities and communal spaces. It is the employer’s responsibility to supply employees with essential cleaning materials such as wipes/disinfection products, paper towels and waste bins/bags to keep their workspaces clean. If employees are required to use Personal Protective Equipment (PPE), then they must be trained in the proper use, cleaning, storing and disposal of PPE. Employers are required to ensure employees use the PPE provided. Provide pre-return training It is the employer’s responsibility to provide training to employees prior to re-entering the organisation. COVID-19 training must be conducted for all workers to ensure they are aware of: their obligations; the organisation’s updated policies; the way the workspace has been re-organised; working practices and guidance on public health; what to do if they develop COVID-19 symptoms; and points of contact and escalation within the organisation. It is important to tailor training to your organisation’s specific needs and avoid using generic COVID-19 training. Implement infrastructure changes  Since the government guidelines for physical distancing of two metres remains in place, office spaces will need to be re-configured to adhere to this. The concept of staggering employees’ return to the office, whereby half of employees attend the workplace for two or three days per week, or on a week in/week out basis, while others continue to work remotely before rotating for the remainder of the week, may be beneficial to your organisation. This system allows all employees to attend the workplace while ensuring that safe physical distancing (e.g. having every second seat free) can be facilitated. The pandemic has impacted severely on every part of our society and our economy. We are now entering a new phase and the return to the workplace must be carefully considered. Sonya Boyce is the Director of HR Consulting at Mazars.

With the current disruption to business processes, how can you manage risk and prevent cybercrime? Will O’Brien gives four key steps needed to protect your business from fraud. With COVID-19 disrupting business as usual, fraud attempts are being made on existing processes that may not be functioning as designed due to remote working, employer distraction and operational or workforce disruption. These fraud patterns are continuing to evolve and need your ongoing attention. Businesses should be asking: Are these threats being sufficiently assessed, or are there gaps that leave the business exposed? Has there been a re-evaluation of the new fraud risks due to new working arrangements? Are current policies effective if/while the workforce is operating from remote locations? Are the right actions being taken when an incident occurs? When economic survival is threatened, the line separating acceptable and unacceptable behaviour can become blurred for some. Experience from previous recessions shows that criminal organisations and individuals will view the current environment as an opportunity to be taken advantage of. COVID-19 has also introduced challenges which heighten the risk of fraud. Businesses should be taking practical anti-fraud measures, along with reviewing or establishing an anti-fraud programme. Remote working arrangements are weakening the oversight provided by the three lines of defence that ensures the effective management of risk. This can impact internal controls in areas such as payroll, receivables and payables. Cyber-risks are also heightened with IT changes being rapidly deployed and network access being requested from multiple locations. Opportunistic threats are increasing as criminal organisations seek to exploit the changing environment. Businesses must remain alert and respond appropriately. A big part of this will involve providing employees with specific guidance on how to spot suspicious activity. What four key actions should businesses take now? Unprecedented times like this call for innovative solutions to identify and tackle the increase in fraud. Businesses must ensure that their COVID-19 fraud management program minimises risk across all its operations. It is important to have the flexibility to adapt to changes and uncertainty. 1. Update your existing fraud risk assessment During challenging times, fraud risk assessment involves a significant commitment by management and staff. It should be directed or managed by personnel with fraud risk expertise. The key steps include: Establishing the context; Identifying the new risks; Analysing the risks; Evaluating the risks; and Treating those unacceptable risks. Risk identification should not be confined to only financial risks. Some fraud, such as cybercrime and information theft, damage reputation as well as the bottom line. 2. Consider the impact of reducing headcount and cost-cutting measures When businesses downsize, the remaining staff take on additional responsibilities outside of their scope and expertise due to work being realigned. This can result in weaknesses in the internal control structure such as: Lack of segregation of duties; Lack of the correct skill sets; Staff are overworked and under-resourced; Documentation of controls impacted; Increase in fraud; and, Increased pressure on governance structures. Consider whether all updated processes and procedures are understood, including revised roles and responsibilities. 3. Consider risks attached to fast-tracking new suppliers and other business partners Commercial pressure may arise to quickly deliver products or services to market. Existing suppliers and third parties who are fully vetted may not be able to meet this demand or are facing their own COVID-19-related challenges. While it may be desirable to "fast track" new suppliers or third parties, appropriate measures should be implemented to mitigate the risk of engaging unsuitable third parties. Have sufficient steps been undertaken to independently verify new and existing suppliers and business partners? 4. Internal audit considerations During times of heightened fraud risk, internal audit should review management’s commitment to internal controls and report on any suspicions or allegations of fraud. COVID-19 has had implications on financial reporting. Companies and auditors need to work together to ensure quality is not compromised even in challenging circumstances.  Internal audit should ensure that they: review and expand or redirect internal audit coverage; prioritise fraud risk in the internal audit plan; assess the adequacy of the control environment with appropriate planning and management oversight; assess adequacy of company’s whistle-blowing procedures; increase in data monitoring and analysis; and conduct, where appropriate, surprise audits. Having a robust fraud management program and a culture where the tone at the top promotes integrity and holds employees accountable will go a long way to protecting critical assets and weathering times of uncertainty. Will O'Brien is the Director of PwC’s Cyber Practice.

How can you increase your bottom line during the challenging times we are currently operating in? Ciara McMullin outlines where VAT law can help businesses to gain short-term cash flow improvements. It is a truth universally acknowledged that cash is the lifeblood of business. Given the challenging times we are currently operating in, many companies are looking for innovative ways to increase their bottom line while improving their management of day-to-day operational costs. While maintaining cash flow is always vital to the success of any business, it is even more relevant during periods of unprecedented uncertainty. In response to the COVID-19 crisis, Irish Revenue have introduced certain limited VAT measures targeted at small and medium enterprises (SMEs). There are, however, several mechanisms already provided for in VAT law, and generally accepted indirect tax practice, which can be used by any business (once relevant) to gain short-term cash flow improvements. If these simple strategies are appropriately implemented, the impact on cash flow could offer a significant boost to businesses during these times of need. VAT Cost Reduction Input VAT recovery methodology Ultimately, all businesses with restricted input VAT recovery need to ensure that the method in place for recovering VAT on dual-use inputs, being the percentage of VAT deductible on costs used both for VATable and non-deductible activities, correctly reflects the use to which the underlying costs are put. As a result of such a review, additional costs may be identified as being attributable to VATable supplies which, coupled with an overall change in the basis for calculating the input VAT blockage, could lead to significant improvements. Accounts payable review A review of accounts payable to consider if all input VAT incurred has been recovered, where permitted, can prove fruitful. In our experience, many businesses under-recover VAT either on categories of expenses, through mis-postings or failure to identify foreign VAT eligible for recovery. Not only can this lead to future cost reductions, but there may also be the opportunity to submit historic reclaims to tax authorities for any identified under-claimed VAT on such costs. Overseas input tax recovery Foreign VAT often remains unclaimed even though there are now efficient procedures in place to reclaim non-Irish VAT incurred. A refund of foreign VAT incurred by Irish and EU traders can be made through the Electronic VAT Refund (EVR) procedure, by submitting a claim via Revenue Online Services (ROS) (or the businesses relevant Tax Authority portal) within the relevant time limits. A reclaim for input VAT recovery on costs incurred in other EU Member States in 2019 must be submitted by an Irish trader to Revenue via ROS by 30 September 2020. The claim being made is still, however, subject to the VAT deductibility rules in the jurisdiction in which the VAT was incurred.  Bad debt relief (BDR) If a debt has been written off as an irrecoverable debt, the business should be able to obtain relief for all or part of the VAT paid on the original supply to the customer in default. Where large debts are written off, significant savings can be made.  VAT Cashflow Input tax accrual Operating an input tax accrual with a view to recovering VAT on invoices received but unposted to the accounting records in the earliest possible VAT return is another cash flow optimisation strategy worth considering at this time. If implemented correctly, substantial cash flow benefits can arise. VAT grouping Where there are considerable VATable costs between related entities, the cash flow benefits of forming a VAT group are also worth bearing in mind. Once VAT grouped, the VAT group remitter files a single VAT return per period for the entire group and accounts for any VAT due to Revenue. VAT does not need to be charged nor VAT invoices raised on supplies between VAT grouped entities, with the exception of property transactions. Accordingly, a significant positive cash flow impact can be availed of by forming a VAT group. VAT56B authorisation A qualifying business that holds a valid Section 56 authorisation is entitled to receive certain goods and services from Irish suppliers with a zero-rate of VAT applying as well as importing goods free from VAT. Eligibility to participate in this scheme can be a significant cash-flow benefit as it removes the requirement for suppliers to charge VAT on qualifying supplies in the first instance, and eliminates the necessity for a subsequent reclaim of this VAT on the business’s periodic VAT return. A business may avail of this relief if 75% of total annual turnover is derived from supplying goods to other EU countries (intra-community supplies), exporting goods to countries outside the EU or making supplies of certain contract work. Consider tax point of invoices Businesses could also consider the VAT tax points of their supplies and explore the timing of when VAT is due for payment. Consideration should also be given to when reverse charge obligations are triggered from supplies bought in from overseas. Other opportunities worth considering at this time are the offsetting of tax liabilities, e.g. using a VAT repayment to fund Employment Taxes or Corporation Tax or (re)negotiating customer and supplier payment terms (accounts payable seek longer payment terms; accounts receivable seek shorter payment terms). Ciara McMullin is an Indirect Tax Senior Manager with Deloitte.

Chartered Accountants play a critical role in operations around the world, and many are now guiding their organisations through the uncertainty and economic turmoil wreaked by COVID-19. Accountancy Ireland spoke to several members at the fore of this difficult task. Liam Woods  Director of Acute Operations at the HSE As a member of NPHET (the National Public Health Emergency Team) and with responsibility for the public hospital system in the Republic of Ireland, Liam Woods has played a central role in the country’s response to the COVID-19 crisis. In normal circumstances, Liam oversees acute services and the deployment of a €6 billion budget for the acute hospital system, which covers 48 hospitals across the country. Today, however, he is at the forefront of the public health system’s response to the global pandemic. Liam and his colleagues have worked relentlessly since December 2019, when the first case of coronavirus became known. “At that time, we were aware that there was an emerging set of concerning circumstances in China,” he said. “We are linked in with the World Health Organisation and the European Centre for Disease Control through the Department of Health, so we began receiving information on the situation almost immediately.” According to Liam, the threat to Ireland was confirmed by the Italian experience, with Ireland’s first case confirmed in late February 2020. This in turn led to an escalation of the pre-existing national crisis management structures. “Once we saw Italy’s crisis unfold, we implemented the HSE emergency management structures and assessed emerging scenarios and the subsequent requirements for intensive care capacity, acute capacity, and community capacity,” he added. “As March approached, we expected a major surge in cases of COVID-19. That surge did occur, but we didn’t see the levels experienced by Italy and that was primarily down to the public health measures taken in February and March.” As the pandemic progressed, areas under Liam’s remit such as the National Ambulance Service became increasingly critical elements of the response strategy. But as the pressure increased, so too did staff absence. “Today (30 April), 2,800 colleagues are absent in the acute system with a further 2,000 absent in the community system related to COVID-19,” he said. “That is a big challenge for the frontline, as is the procurement of personal protective equipment (PPE). Our procurement teams are working night and day to secure the necessary equipment to protect our workers.” That effort has been supplemented by the overwhelming generosity of individuals and businesses according to Liam. “We had a massive response from the business community and society as a whole, from distillery companies manufacturing antibacterial hand gel to people making face shields using 3D printers,” he added. “Beating this virus has become a truly collective effort and those working in the HSE really felt and appreciated that.” Although restrictions are now being cautiously eased, Liam expects the workload to remain relentless. “At a personal level, it is demanding but if you work in the health system and understand how it needs to operate, you at least feel that you can make a direct contribution and a lot of positivity comes from that. The response of frontline staff in hospital and community services has been amazing and the commitment to delivering care has been key to the success to date in responding to what is a global crisis.” Tia Crowley  CEO at Western Care Tia Crowley had an “unusual” induction to the role of CEO at Western Care, as her appointment coincided with Leo Varadkar’s statement in Washington on the first wave of measures to tackle COVID-19 in Ireland. Given that her organisation provides services and supports to adults and children with intellectual disabilities and/or autism in Co. Mayo, Tia was very conscious of the need for – and challenges to – the provision of her organisation’s services. “When the COVID-19 restrictions were imposed initially, we risk-assessed all areas of service provision and made the difficult decision to close day/respite services and limit community support services to essential supports that could be provided safely,” she said. Many of the organisation’s 950 staff were reassigned to support Western Care’s residential services, which now operate on a 24-hour basis. According to Tia, maintaining an optimum level of service while securing adequate PPE for frontline workers is a constant concern – but there are longer-term challenges in the horizon. “I, and the new management team, had hoped to bring in a balanced budget for 2020 after prolonged periods of cutbacks, deficits and containment cycles. However, a shock 1% cut to funding allocations across the sector coupled with the impact of COVID-19 will impact our ability to meet the demand for our services within our existing allocation,” she said. “The cost of the crisis, and the associated long-term implication for funding, is a challenge that is constantly on our minds. But at the moment, our focus has to remain on keeping our service users and staff safe.” Aside from financing, one thing preventing organisations like Western Care operating to their full potential is an overly burdensome compliance regime, Tia added. “I hope the Government recognises how organisations like Western Care responded to this crisis and the support they provided to the HSE when it was most needed,” she continued. “After the worst of this crisis passes, I would like to see a streamlined regulatory environment where, once an organisation is deemed to comply with a basic set of standards, that is accepted by all regulators. We, like others, struggle to comply with multiple regulators and compliance regimes and at last count, more than 35 different regimes applied to Western Care.” Despite the many challenges, Tia has noticed certain positives amid the bleak backdrop. “The atmosphere of cooperation throughout the organisation has reinforced my belief in human nature and I hear stories of resilience among service users, families and staff who have gone over and above to support families in crisis and keep service users happy and content,” she said. “We are also building supportive relationships with the HSE locally as we turn to them for support and guidance. But equally, we provide them with reassurance and support too because we are all in this together.” Ultimately, Tia’s hope for the future is a simple one. “I hope that we can emerge from this pandemic with a sense of pride and renewed purpose, knowing that we have come through one of the most significant events in our lifetime and that everyone in Western Care did their best.” Dermot Crowley  Dalata Hotel Group Dalata Hotel Group was quick to respond to the threat of coronavirus to its business. From cancelling its shareholder dividend to renegotiating with lenders, the company has cut its cloth and according to Dermot Crowley, Deputy Chief Executive, Dalata is well-positioned to weather a long storm. “We have always been very careful with our gearing and as things stand, we have access to €145 million in funding,” he said. “We immediately created a worst-case scenario of zero revenue for the remainder of the year. We examined every cost item and calculated our cash burn. The major fixed costs are elements of payroll, rent and interest. Having done that exercise, we were in a position to reassure our shareholders that we could survive at least until the end of the year on a zero-revenue model.” As it happens, the company is still generating revenue. Dalata raised a further €65 million in April when it sold its Clayton Charlemont Hotel in a sale and leaseback transaction and although most of the company’s hotels are formally closed, Dalata responded to requests from governments and health agencies to accommodate frontline workers, asylum seekers and the homeless – often at much-reduced costs. Meanwhile, all other hotels have management and maintenance teams in place to ensure that all properties are ready to re-open at short notice. While some workers remain, the company was forced to lay-off 3,500 staff at the outset of the crisis, but Dermot is determined to re-employ as many people as possible as restrictions ease and trading conditions improve. “One of the most frustrating things about this crisis is letting our people go. We invest a huge amount in our staff and last year alone, we had 350 colleagues in development programmes. We also take on 35 people each year through graduate programmes and we have several trainee Chartered Accountants in our employ,” he said. “We absolutely want to take everyone back on.” Despite the company’s preparations for the ‘new normal’, whatever (and whenever) that might be, Dermot remains cautious in his outlook for the sector. “Dalata is a very ambitious company and we have a lot of new hotels in the pipeline, but the reality is that we are likely to be facing lower occupancies once the restrictions are lifted,” he said. “When we re-open, the domestic market will be the first part of the business to recover but the international market could take quite some time depending on travel restrictions.” At its AGM at the end of April, the company confirmed that earnings fell almost 25% in the first three months of the year to €17.7 million. With even worse results certain for the period after 31 March and normality a distant prospect, Dermot expects the sector to experience both tragedy and opportunity in the months ahead. “Some companies will not make it through this crisis and that’s just reality,” he said. “That will create some opportunities. We built a strong company after the last crisis, but I do not see the same fallout in Ireland as in the UK this time around. The UK has many old properties and companies with high gearing ratios, so that may be where the most changes will occur.” Naomi Holland International Treasurer at Intel As International Treasurer and Senior Director of Tax at Intel, Naomi Holland had a demanding role before COVID-19 became a threat, but her role has since expanded as she – and her colleagues – seek to protect the chipmaker and its people from the threat posed by coronavirus. As leader of Intel’s Global Tax & Treasury Virus Task Force, Naomi also sits on the Global Finance Virus Task Force, which develops and implements Intel’s crisis response for the corporation’s worldwide finance function. This is not just a strategic project for Naomi, however. Her global role means that she has direct responsibility for employees in some of the worst affected areas of the world. “I have teams based in China where we were dealing with the outbreak from early 2020,” she said. While it was largely restricted at that stage, the China situation effectively became a test-run for the global pandemic that was to come.” Some employee considerations included colleagues who had returned home for the Chinese New Year and became confined to their province, others were on secondment outside their home country and Intel needed to assess the return home versus the remain in situ options, and some countries’ lockdown notice was so short that staff ended up not returning home to their families and were confined alone. In the early days of the crisis, Naomi and her colleagues engaged in extensive scenario planning. They considered single sites closing down, multiple sites closing down, and the impact of COVID-19 outbreaks on the organisation’s operability. That led to a rationalisation of activity to ensure that critical functions remained up and running. “In addition to ensuring that we had the necessary contingencies in place should a person, team or site fall victim to COVID-19, it was also essential that we prioritised our activity,” she said. “This required significant coordination as we needed to ensure that our partner organisations around the world were satisfied with what remained on our priority list and, importantly, what didn’t.” This required extensive communication, which was central to Intel’s response according to Naomi. “We were acutely aware that people needed information,” she said. “So, we focused on our internal communications and developed a ‘people’ track to complement that.” This was particularly important for Naomi, whose team spans several countries including Ireland, the Netherlands, Israel, India, and China. Her leaderhip remit meant the US teams were also on her agenda. Despite the complexity, Intel’s quick response meant that the company “didn’t miss a beat”, according to Naomi. “COVID-19 has forced all companies to assess items including their liquidity, their work-from-home capability, and their technological infrastructure,” she added. “We took all the necessary decisions, amended procedures as required and augmented our hardware in places. The greater complexity, of course, resided within our factory and logistics networks but I am proud to say that their delivery can only be described as incredible.” As the shock factor subsides and people increasingly become resigned to the prospect of living and working alongside COVID-19 for the foreseeable future, Naomi is determined to maintain her focus on her people and their mental health. “I’ve always said that people are a company’s best asset and if this crisis has taught me anything, it’s in our augmented ability to deliver when we operate as one team despite the circumstances,” she said. “The first six months of 2020 have been a traumatic time for many. However, with senior executives leading from the front and maintaining communication with their people, this crisis is in fact humanising us and helping us connect with our colleagues on a more personal level.” Shauna Burns Managing Director at Beyond Business Travel Beyond Business Travel is ten years old this year and like the rest of the travel sector, it faces severe challenges due to COVID-19. According to Shauna Burns, the company’s Managing Director, 2020 was the year the firm planned to reach £20 million in turnover and build on its investment in Ireland following last year’s opening of offices in Dublin and Cork. The impact of the pandemic was felt by the company in February, according to Shauna, when FlyBe entered administration. March then saw the domino effect of countries closing their borders, which presented a unique set of challenges. “We had clients and staff located all over the world, and we had to work 24/7 to ensure they got home quickly,” she said. The company was also involved in the Ireland’s Call initiative to bring home medical professionals to work in the HSE and NHS. After this initial flurry of activity, Shauna and her team had to take both a strategic and forensic view of the business amid a fast-changing business landscape. “Difficult but essential decisions had to be made on operational continuity and cash flow while engaging with our key stakeholders and looking into the potential for financial assistance from Government,” she added. “From the off, we were determined that our company’s core values around excellent customer service would not change. We retained some key staff to provide ongoing information and to ensure that clients who urgently need to travel can do so. This comes at a financial cost in terms of maintaining our premises and fixed overheads, but it is a decision we believe will benefit the business in the long run.” With one eye on the easing of travel restrictions, Shauna’s firm is also compiling information and advice for companies whose people must resume travel, so that they make informed decisions and manage the impact of COVID-19 on their business. The travel industry will re-open and travellers will take to the air again, she said, but they will travel less often and with an increased focus on traveller health and safety. “We expect to operate below capacity for the immediate future, so part-time furlough allows us to raise activity in line with demand,” she said. “Consequently, we are looking at our offering and service lines, and right-sizing our business for the ‘new normal’. There are opportunities to become leaner, faster, and more efficient, and digitalisation is a core element of that process. “We now have an opportunity to ask ourselves if the business were starting from scratch, what would we do differently and reimagine what this looks like ,” she added. “But for our business, restoring confidence in the safety of air travel is a vital pre-requisite to enabling recovery and with more than one third of global trade by value moving by air, it will also be vital for the recovery of the global economy.” The entrepreneurs Growing businesses with finite resources are very vulnerable to economic shocks, but one Chartered Accountant is using technology to weather the storm. Fiona Smiddy, Founder of Green Outlook, had three active revenue streams before the onset of COVID-19 – e-commerce, markets/event retail, and corporate services including speaking engagements. She is now down to one viable revenue stream, but the growth in online retail has allowed her company to grow during the pandemic. Fiona runs a tight ship from a cost perspective. She outsourced her order fulfilment activity in 2019 and engaged the services of a ‘virtual CFO’ who keeps her focused on her KPIs. “Green Outlook turned one year old at the end of March and the key challenge remains brand awareness and cash flow management,” she said. “The company is self-funded with no outside investment or loans, so I am restricted to organic growth.” Green Outlook continues to support Irish suppliers, with 22 Irish brands represented among the more than 170 sustainable, plastic-free products available online, and Fiona cites this as a contributory factor in her success. “I have noticed a huge uplift in supporting local and Irish businesses and I hope this continues post-COVID-19,” she said. Brendan Halpin, Founder of WeSwitchU.ie, also hopes to support Irish businesses and households in the months ahead. He launched his new company in March 2020, just as the lockdown came into effect, but having spent 2019 in the development phase, he is certain that now is the right time to launch a cost-saving business. WeSwicthU.ie is a digital platform that finds the best electricity and gas energy plan for individual households each year and even as COVID-19 reached Ireland, Brendan did not consider it a threat to his business. “It was pandemic-proof in a sense because our entire proposition is online. From the comfort of your home, the platform takes the stress and hassle out of switching and saving money on customers’ home electricity and gas bills,” he added. “The only change in the business plan was on the marketing side; I had intended to be out and about meeting people, but that activity simply moved online.” While the market reaction has been positive so far, Brendan is conscious that any planned expansion would require funding – and that may be a challenge as the economic malaise becomes more entrenched. “I have funded the business myself so far but if I really want to grow, the next step will involve external financing,” he said. “I do hope that the Government and State agencies will help start-ups like mine grow through their relevant phases despite the uncertainty that lies ahead.”

Building a culture of inclusion and belonging is now more important than ever. Rachel Power shares her insights from PwC’s experience thus far. Not that long ago, we were all clear on our plans. Our strategies were set, with events and meetings scheduled in the diversity and inclusion calendar for the year ahead. All the behaviours and operating norms we took for granted changed in what seemed like the flick of a switch. COVID-19 has led to new terms in the diversity and inclusion (D&I) world, which we would not have understood just a few months ago. The main one at the heart of PwC’s strategy is ‘inclusive distancing’ – how can we all be more inclusive while maintaining a distance that is outside the norm. Another element that is core to our current D&I work is just how little has changed. While our medium may differ, the core elements of our strategy remain the same around inclusion, wellness and flexibility and focusing on tools and training for the future. Our long-standing D&I values have helped us navigate through this crisis, and this was supported in no small part by our investment in technology.  More important than ever Several items already high on our strategic agenda have helped us navigate and transition relatively seamlessly into this new remote working world, in which building on our culture of inclusion and belonging is more important than ever. Our D&I focus was on three areas before the arrival of COVID-19, and all three ring true during this time: Nurturing an environment of inclusion and belonging; Living our values, putting wellness and flexibility at the core; and Leveraging tools and training for the future. We set these objectives before the pandemic, but they are still as relevant now as ever. Transforming our workforce and the way we work requires us to have diverse, talented people from different backgrounds; people who have different experiences and who bring innovation, creativity, and fresh perspectives. No one size fits all This new era of working remotely – or smart working, as we call it – brings challenges that can present in different ways for our diverse team. We are all different, with distinct personal circumstances, and deal with problems in unique ways. Some people are balancing work and caring for their family; others may be away from their family and friends. Some have family on the front line, relatives who have been sick, or family members who may not be well. A one-size approach certainly does not fit all. While many of us worked flexibly before the crisis, our approach to flexibility has been taken to a new level. Arrangements that worked in the past are in many cases no longer viable, as many of our people now balance many things including work. The new world of flexible working may, therefore, involve doing some work very early and then taking a couple of hours during the day for caring responsibilities or exercise, before returning to work later. It is all about balance and finding ways to make it work. Again, this comes back to having inclusive and values-based leaders and ensuring that the right conversations happen so that the solutions work for everyone. Focus on wellbeing Focusing on the wellbeing of our people, particularly to support those struggling with a diverse range of circumstances, has been at the top of our priority list at PwC. Through our Be Well, Work Well programme, we provide a variety of supports including one-to-one psychologist sessions, parenting, nutrition and fitness classes, and we continue to host regular wellbeing seminars. Communicating regularly with our people, and in different ways, has been vital. From transforming our intranet into a ‘smart hub for smart working’ to regular emails, leadership briefings and FAQs, we continue to foster a culture of inclusion. There is undoubtedly more to do as the end to this pandemic is far from sight. However, our values, strategic direction, and technology will help steer us through this and ultimately strengthen D&I throughout our firm and beyond. Rachel Power is Diversity & Inclusion Senior Manager at PwC Ireland.

Ronan Dunne draws on his experience at the highest echelons of business to share his six leadership lessons. When I first worked in London as a banker, I was promoted three times in a period of about 15 months. I was an eager and highly qualified Chartered Accountant but in the first 12 months I worked late every evening. Then, I started working on Saturday and Sunday. I worked my socks off and for the first year, it was a remarkably successful strategy – but then, I hit a wall. I had no more capacity. It was a completely unsustainable model and it did not take me long to realise that unless I could invent an eighth day in the week, I would need to change my management style. The lessons that follow are based on my experience as a Chartered Accountant in business, and one who often had to learn lessons the hard way. Some may be more relevant to you than others, but I nevertheless hope that you find them useful. Lesson 1: It is not what you do, it is what you make happen When Chartered Accountants start out in their careers, they are largely personal contributors. They have a very specific role and success is defined by the outcome or the output of their particular job. Increasingly, however, we realise that this approach is based on an old-fashioned, hierarchical business model. In modern society, and for millennials in particular, painting inside the lines is not an attractive proposition – even in your first job. So, discover as early as possible in your career that your success does not just depend exclusively on what you do; it also hinges on what you make happen. Your capacity to impact and influence is infinite but your output is simply defined by hours in the day, no matter how hard and fast you work. At every point in your career, you have the opportunity to impact and influence those around you. Key takeaway: Take the opportunity to make a difference when it comes your way. Lesson 2: To be an effective leader, build an effective team The capacity to exceed expectations lies in how you blend the skills and capabilities of those around you. Effective teams do not simply do what any other team would; effective teams harness the unique talent, perspectives, and experience of their individual members in a way that enables the collective to achieve outcomes that would not otherwise be possible. When considering team formation, we sometimes think “I need someone for finance, someone for marketing, someone for legal” and so on. But actually, if you build a team correctly, you create space for each person to bring their own personality and their own unique perspective to the team. That is the secret ingredient to superior outcomes. Key takeaway: Every person within the team has a unique contribution to make. Lesson 3: Exercise judgement as to when to exercise judgement This might sound like a play on words but in my experience, people early in their career often have a desire to impress their superiors. They sometimes seek out opportunities to act decisively, to jump in and make a decision in order to demonstrate that they have what it takes to be a manager or a leader. In fact, they often demonstrate their inexperience by attempting to find a moment to showcase their decisiveness and by consequence, unwittingly illustrate their impatience. Very often, the wisest thing to do is to explain why a decision cannot be made due to a lack of information or context, for example. By all means, look for opportunities to exercise judgement but remember that judgement can sometimes be best exercised by not deciding and explaining why. Key takeaway: When meeting with senior executives, remember that rushing to make an impact may make you look like an idiot. Lesson 4: Leadership should happen at every level In business, decisions are best made closest to the point of impact. An effective organisation therefore ensures that those who make decisions have the right context and the discretion to decide, because hierarchy on its own does not always work. In a team, the most senior member is not always the natural leader on a particular topic or project so to be continually effective, teams should encourage those closer to the issue to take the helm. That means cultivating the flexibility to have junior members lead the way. Indeed, the biggest challenge facing larger organisations is their established hierarchical models. Such companies recruit bright, young, and digitally literate people but in too many cases they leave after a year or two because they get completely disillusioned. Despite understanding more about behavioural trends or other issues that may be affecting the business, their opinion is never sought out because they are three or four levels down in the organisation. Leaders need to empower those people and accept a certain amount of risk. There must be permission to fail but even in organisations with a mild risk tolerance, this concept creates a space in which an organisation’s collective potential can be nurtured. Key takeaway: Acknowledging context is critical to effective decision-making. Couple that with delegated authority and permission to fail, and you have a solid foundation for a highly effective organisation. Lesson 5: Authenticity is the gateway to true leadership My view of authenticity is built on two ideas – one is a personal insight and the other builds on the elements discussed above. I became a CEO for the first time with O2 in the UK when we were on the cusp of a major recession. I had a successful career up to that point but when I took over as CEO, I struggled for the first six months because I spent a lot of time wondering what other people would have done in my situation. In many jobs, you are the subject matter expert but as CEO, you are a jack of all trades and often master of none. Then, I had an almost spiritual moment when I realised that I had 27 years of rich experience. It became clear that the only way I could do my job was to be myself. So, as a leader, you need to ask yourself: who are you? People rarely challenge themselves with this question. I describe myself as chief cheerleader and chief storyteller. I am an extrovert, a joiner-upper, an enthusiast – and I use that to be a front-row leader because that just happens to be my natural style. So ultimately, the best way to be successful in any role is to be yourself. The second thing is that when you are the boss, nobody asks you a question that they know the answer to. This leaves you with a strange obligation to know the answer to everything, but CEOs manage uncertainty amid many shades of grey and it can be quite liberating to realise that the CEO can and should say: “You know what, I am concerned about that as well.” If you do that, you help your people work things out, find solutions, and build answers to organisational challenges with a sense of togetherness. Key takeaway: Know your strengths and acknowledge that you do not – and should not – have the answer to every question. Lesson 6: Know the question before you try to answer it There is massive structural impatience in organisations and as a result, I see much more ‘ready, fire, aim’ than ‘ready, aim, fire’. Too often organisations run towards an assumption of what the question (and answer) is; they are in action mode immediately. But a little time working out the precise nature of the question will invariably bring you closer to the answer. Organisations consistently do two things wrong: they press ahead to answer a part-formed question, and they do not allow talent to flourish because hierarchy gets in the way. Key takeaway: Define the question clearly before embarking on the search for an answer. Ronan Dunne FCA is CEO at Verizon Consumer Group.

Caroline Pope considers the UN’s Sustainable Development Goals and their relevance as a framework to rebuild resilient companies as the economy emerges from the COVID-19 crisis. At present, the full impact of COVID-19 on the Irish and global economy is not yet clear. However, the ability of society to work together towards a common goal has been recognised and should form part of the recovery. In 2015, the United Nations Sustainable Development Goals (UN SDGs) were adopted by all member states. Their purpose is to coordinate efforts to improve human lives, protect the environment, and ensure the sustainable development of our societies. Sustainability may not be the most obvious lens through which one should assess the abnormal events of recent months. Yet trends are emerging, which may make business leaders think more deeply about sustainability in the context of their organisations. Below, we outline three of these factors. The UN SDGs drive increased resilience. There is growing evidence that businesses that have already aligned their strategy with the UN SDGs are more resilient to an economic shock. The UN SDGs are not going away. The future business landscape is uncertain, but increasing evidence points to an operating environment that favours businesses that align with the principles of sustainability. A business strategy aligned with the UN SDGs can create value. Aligning a business strategy with the UN SDGs may seem like a daunting process, but there are well-understood methodologies that can be applied. The UN SDGs drive increased resilience  Businesses that align their core strategy with the UN SDGs (also known as ‘sustainable businesses’) take a broader, stakeholder-based view of their activities. As a result, these businesses tend to demonstrate a deeper understanding of oft-overlooked or under-valued areas of their companies, such as supply chains, and their degree of interconnectedness with society in general. This broader understanding, which is the result of UN SDG alignment, can position them to respond more rapidly to the threats that COVID-19 represents to their stakeholders. In particular, supply chains are coming under increasing pressure due to the global nature of COVID-19, combined with the increasingly international scope of business. The advice from supply chain experts such as Richard Wilding OBE, Professor of Supply Chain Strategy at Cranfield University, is to “urgently review their supply chain to find out how exposed they are… it’s still common for businesses to just deal with a central HQ of a supplier and not know what route the supplies they need are taking”. Full alignment with UN SDG 10, Reduced Inequalities, will drive businesses towards total supply chain transparency; they will know each factory where their inputs are processed and all the intermediate steps along the way. These businesses are in a much better position than those rushing to uncover their true supply chain risks amid a crisis. This seemingly serendipitous point illustrates a key feature of SDG alignment: it is consistent with well-managed operations. Alignment with SDGs has also made companies more resilient. For example, there has been a paradigm shift for many businesses since COVID-19 emerged as they have sought to facilitate organisation-wide remote-working to prevent activity grinding to a halt. Contrast this with sustainable businesses such as Vodafone who, in recent years, saw remote working as a means of advancing Goal 5, Gender Equality, and have already invested in the infrastructure to facilitate this. Finally, sustainable businesses enjoyed a higher degree of investor confidence before the economy shut down and seem to continue to enjoy a higher degree of investor confidence as the shut-down continues. Figures published by Funds Europe suggest that values of European sustainable funds dropped by 10.6%, compared with the “overall European fund universe” which declined by 16.2%. Robeco, the global asset manager, has also found a positive relationship between lower credit risk and sector alignment with SDGs. The RobecoSAM Global SDG Credits strategy outperformed the Bloomberg Barclays Global Aggregate Corporate Index by +90 basis points in March of this year. To compound these data points, the UN Principles for Responsible Investment (UN PRI) membership group recommends that all signatories (which represents $86.3 trillion in assets under management) support sustainable companies through the crisis in the interest of public health and long-term economic performance, even if that limits short-term returns. The UN SDGs are not going away The existential threat of COVID-19 has brought into sharp focus other threats of a similar scale, such as climate change and social inequality. The global response to COVID-19 has shown that there is a willingness to embrace long-term changes and drive towards a common goal. This sense of spirit will likely fade as the crisis abates, but it is unlikely to disappear totally. Companies that genuinely embedded purpose before March 2020 are likely to experience favourable trade winds from an upturn due to the opportunity for reflection (and social media opinions) by customers and employees during the lockdown. As societies get over the initial shock of the pandemic and the focus shifts from lockdown to restart, the critical question is how to put the economy and society on a trajectory that lasts. There is a growing consensus in Europe, for example, that the required economic stimulus will have a green hue. In April, the Government of Ireland indicated that it fully supports the EU Green Deal proposed as the central tenet of an economic recovery plan, aligning with 16 other member states. The EU Green Deal provides a roadmap towards a clean, circular economy, restoring biodiversity and cutting pollution. The proposed EU direction of travel is very much aligned with the UN SDGs and this political environment should create an opportunity for businesses that choose to swim with the current. Investors, such as Blackrock, have signalled that regardless of the COVID-19 pandemic, they still expect companies to continue with their ESG (environmental, social and governance) targets. Blackrock has pledged to vote against the directors and boards of companies that fail to meet its expectations to manage environmental risk in 2020 and called for companies to report in line with the Task Force on Climate-related Financial Disclosures (TCFD) framework. The asset manager expects companies to publicly report how sustainability risks and opportunities are integrated into business strategy. In an Irish context, the UN SDG Index report, released in 2019, shows significant challenges to Ireland meeting several key metrics, including SDG 12 (Responsible Consumption and Production), SDG 13 (Climate Action) and SDG 17 (Partnerships). This is due in part to an absence of information, but also reflects our known challenges on climate action. This was a negative result for Ireland, and there will likely be an emphasis from the Government on these three SDGs as part of the recovery package. While we are all preparing for a change in dialogue and a focus on climate action once the new government is formed, SDG 12 (which focuses on responsible consumption and production) presents a similarly large opportunity. In particular, companies that have already implemented a more circular model for resource management and waste streams are benefiting from a first-mover advantage in the circular economy. A business strategy aligned to the SDGs can create value  Given the significant opportunities and risks associated with the UN SDGs, companies that excel at identifying and incorporating these issues into their strategy enjoy a competitive advantage in the marketplace and among institutional investors. It is increasingly clear that sustainability and return on investment are connected. To help boards understand and shape the total impact of a company’s strategy and operations externally – on the environment, the company’s consumers and employees, the communities in which it operates, and other stakeholders – and internally on the company’s performance, I suggest a five-part framework (refer to Table 2). This framework for board oversight recognises that creating long-term value increasingly requires companies to understand the impact of their strategies on key stakeholders – investors, employees, customers, and communities – as well as on the natural resources and supply chains that the company relies on, all of which are fundamental elements of the SDGs. An integrated commercial strategy encourages companies and boards to widen their aperture for a fuller view of sustainability, strategy, and long-term performance. Wherever the company is on the sustainability journey, this framework can help to drive a robust conversation about what sustainability risks and opportunities may impact the company’s key stakeholders, corporate strategy, and long-term performance, and how they will be addressed. Aligning with SDGs will help businesses identify risks and opportunities that may have been omitted from previous analysis and will also provide them with a better understanding of their stakeholders and their relevance to those stakeholders. By communicating their progress towards SDGs, companies can enhance their reputation both internally (with employees) and externally (with the broader public); this transparency contributes to enhanced trust and confidence in the companies’ operations and contribution to society. The improved trust may then result in more robust and sustainable economic, environmental, and social performance. Companies that identify and incorporate these issues into their strategy will stand apart as forward-thinking organisations, future-proofed, well-managed, and able to recover quickest in a post-COVID-19 environment. In conclusion The changes we have experienced in the first months of this year will have a devastating impact on the global economy, but this in no way diminishes the relevance of the UN SDGs despite being conceived in a more stable environment. Businesses that have already aligned their strategies and practices have shown enhanced resilience – sometimes in unexpected ways. In the absence of a crystal ball, it is hard to predict the next six months, let alone the next decade. Still, there are many indicators that the operating environment will be even more favourable to businesses that effectively integrate sustainability into their core business strategy. Organisations that rise to these challenges and show leadership will be rewarded by their stakeholders and gain access to new opportunities. Those that fail to act may put their margins and even their business models at risk.   Caroline Pope is Associate Director at KPMG Sustainable Futures, a cross-functional team of experts who help corporate and public sector clients plan and execute programmes addressing environmental, social and governance topics, decarbonisation, and long-term value creation.

Richard Sheath and Susan Stenson share 12 practical tips to help your virtual board meetings operate smoothly in times of crisis. December seems a long time ago.  Back then, as a team of board evaluators,  we set out to imagine how boards would work by 2030. Suddenly the virtual board meetings we perceived as futuristic have arrived, forced on us all by the global COVID-19 pandemic. As boards strive to respond to the many new challenges, board and committee meetings must now work better than ever. And given the unprecedented breadth and difficulty of the issues presented, excellent communication, constructive discussion, and clear-cut decisions are vital. Postponing decisions is not an option, and confusing outcomes will undoubtedly be unhelpful – potentially destructive. Yet these better-than-ever meetings have to be conducted remotely, working with a management team that is likely similarly dispersed. Because we are in contact with many boards that are now meeting virtually, we see what works well and where things go wrong. Based on what we have learnt, here are some practical tips to help your virtual board meetings work well. 1. Get to the point Work even harder with the executive team to ensure that all briefings and presentations are to the point – the point being what the board needs to hear about, now. That means the board and committee chairs going through the possible meeting business and cutting it back to what is essential – whether it is crisis-related or business as usual matters that cannot be postponed. Then, help managers understand that a virtual meeting requires precise points communicated clearly in literally just a few minutes. 2. Set the scene succinctly Ensure that the pre-read papers are clear in terms of what is being asked of the board and that the “overview” page works in the way it should. This overview should include critical background information; a quick reminder of the story so far; the risks; what the board needs to discuss; what is proposed – and all on a couple of pages at most with effective signposting to any essential detail. 3. Draft your agenda from scratch Be extra vigilant in preparing the agenda. Stick to the essential discussion points and ask yourself: can some items be decided by written resolution instead, put in a ‘consent agenda’, or postponed? Start with a clean sheet; do not merely roll-over the usual agenda with some tweaks because that is unlikely to be enough to break the mould. Be clear about the outcomes you need to achieve, and how best to meet them. 4. Prioritise and pace Keep the meeting focused and put what really matters at the top of the agenda. Maintaining concentration for more than a couple of hours is going to be even more difficult than usual, so the essential items need to be addressed first. If there is not enough time, split the meeting into two or three blocks with long-ish breaks in between – long enough to stretch your legs, get some air, and return refreshed. 5. Choose video over audio  Insist on video participation to the greatest extent possible, as it makes a big difference – especially as those on audio-only are often forgotten. That means testing beforehand with each participant, with a co-ordinator (probably from the company secretariat) becoming the expert in how to make your chosen system work. Ask everybody to join a bit early so false starts and broken connections do not sap time and patience once the meeting has officially started. 6. Manage the transitions Sharing documents on-screen can work well on a video call, but the operator needs to know how to do it – and have rehearsed, if possible, knowing what to highlight and where to go. Practise switching between people and a document and back again before the meeting. Switching back is essential – you must get talking heads back on the screen if you want the discussion to flow. 7. Explain the meeting etiquette Establish and communicate the meeting etiquette. That might include the following: mute when not speaking; turn off your video if you need to be interrupted; how to intervene, and the hand signals to do so; how to vote where voting will be required. A chair who typically takes a quick look around the table to assess consensus may need to make this more explicit (for instance, asking everyone to give a thumbs-up). 8. Facilitate input The chair must call on individual directors for their input, rather than leaving them to find their own opportunities to contribute. More frequent stops to take the temperature of the meeting are also needed. 9. Encourage down-time Have comfort breaks at least as often as you would during an in-person meeting. Allow some time during the breaks for chit-chat; social engagement is more important than ever. 10. Stay security conscious Keep an eye on meeting your organisation’s security requirements. Ensure that the Company Secretary monitors who is on the line and remind participants who are not alone in their home offices that they need to use headphones and speak no louder than necessary. In any shared facility, there is a risk that someone may overhear – even through a wall. Screens must be shielded too. This may seem obvious, but we do see and hear things going wrong, resulting in embarrassment at best or a severe breach at worst. 11. Meet your legal obligations Check the legal formalities for your meeting (quorum and location requirements, for example). Take a roll-call at the beginning and if you are tight on numbers, keep an eagle eye on the quorum in case somebody falls off the call. 12. Gather feedback Set aside five to ten minutes at the end of the meeting to ask people how the meeting went and to gather ideas for future virtual board meetings. Alternatively, you can use a short questionnaire if time is short. A checklist for virtual board meetings Here is a list to help you consider the elements of a productive virtual meeting. Be extra vigilant when preparing the agenda and pre-read material Stick to the essential discussions and focus the agenda. Eliminate long verbal presentations. Make sure the pre-read papers are clear on what is being asked of the board. Check the legal formalities for your meeting (quorum requirements, location, etc.)   Check the technical logistics Include a video link and encourage all participants to be in ‘video on’ mode. Ask all participants to join five to ten minutes before the start of the meeting. Test the document sharing facility, if needed.   Set the ground rules Instruct participants to wear headphones and prepare their meeting environment (lighting, camera angle, wi-fi connection, security/confidentiality, etc.) Instruct participants to use mute, turn off video if leaving the room, and take calls elsewhere. Take a roll-call and ensure that everyone knows who is present and who has joined. Secure the meeting – check all joiners and flag confidentiality continually. Set out the rules on how to intervene. Define the use of the chat function or oral questions to facilitate questioning. Work out a mechanism for voting and indicating agreement or dissent.   For the chair Call on individual directors more for their inputs. Stop periodically to take the temperature of the meeting. Include comfort breaks and encourage participants to interact socially during this time. Encourage participants to be respectful, present, and engaged if bad behaviour becomes apparent. Check with participants after the meeting to gauge their experience. Richard Sheath is a Director at Independent Audit Limited, the board evaluators. Susan Stenson is a Director at Independent Audit Limited, the board evaluators.

John Kennedy explains why knowing too much can harm your practice, and where you should apply your focus instead. When I ask Chartered Accountants to make a list of the problems that hold them back from getting new clients, I am sometimes surprised at the issues they include. One point never makes the list, yet it is often a challenge – they just know too much. How can that be a problem? Surely every client wants a highly knowledgeable accountant, someone who is on top of all of the details and knows all of the angles?This is partly true, but it hides how you can inadvertently damage your practice. Unless you take time to step back, think clearly from the perspective of the client and shape your words to meet their needs, you can quickly lose their attention. This problem is compounded by the assumption that your clients pay you for your knowledge of accountancy, but that is not why clients pay you. Why do clients pay you? This is a deceptively simple question. Is it because of the things you know or because of the things you do for them? Or is it because your qualifications mean you are empowered to authorise documents? Each answer constitutes some part of the reason, but each also obscures a vitally important point. There are two crucial distinctions. First, clients do not pay you for the things you do; they pay you for the value you deliver. Second, the value you provide is only partially expressed in monetary terms. The fundamental truth is that, in many cases, clients most value the way you make them feel. Where your real value lies When you were studying as an undergraduate, the emphasis was on increasing your knowledge. You bought textbooks, you attended lectures, you completed assignments and the focus was always on what you knew – more facts, more information, more knowledge. Your exams tested and confirmed your knowledge; the more you could prove all you knew, the higher the grades. And the more you knew, the better you felt and the better you were regarded by the training firms for whom you hoped to work. With this relentless emphasis on knowing more and more, it is unsurprising that you came to assume that knowledge was where your value as an accountant lay. Then you became a trainee Chartered Accountant in a firm. In your application, your interview and all of the tasks you were given, it was assumed that you had the knowledge required. At this point, the emphasis began to shift to the things you did. You were given specific tasks; what you did and the time it took was captured in timesheets. The emphasis of virtually every aspect of your work, your day and your value revolved around recording your activity in your timesheets. And then you set up your own practice. By now, the emphasis had become so engrained – entrenched even – that you assumed that the key to building a successful practice revolved around turning what you knew into what you do, and recording that in timesheets to bill your client. This focus transferred to your client, but the truth is that this is not where your greatest value – nor your greatest opportunity – lies. Your client wants your value, not your time To build a successful practice, you need to move your thinking – and the focus for your client – beyond what you do and towards the value you provide. This involves two steps. The first step is to consciously move the emphasis from the things you do to the value you deliver. This first step is widely accepted but poorly implemented in practice. The second step is perhaps even more critical if much less understood. To build a practice with strong bonds with long-term clients, you need to move the emphasis from facts to feelings. Human beings like to believe that our species is more rational than it really is. We believe that we see or hear something, we analyse it rationally, and we decide. But do you suppress your feelings at work and give dispassionate advice? Are you always logical and provide clients with clearly thought-out analysis? This is what we like to believe, but it is often untrue. The reality looks much more like this: we see or hear something; we filter it through our emotions; we interpret it and tell ourselves a story; and on that basis, we decide if it is right or wrong. This filtering process happens all the time and while every client wants the facts dealt with, they assume that this is the minimum level of service they will receive from their accountant. The bonds that make clients work with you and generate referrals are forged beneath the level of conscious thoughts. Even in business, the way we feel is of enormous importance so you can create a genuine edge by understanding and applying this. The positive feelings generated by your work include peace of mind, increased confidence in decision-making, or the anticipation of a comfortable retirement. These are important sources of value, yet few realise just how vital these submerged feelings are – even in the most dispassionate business transaction. Every interaction has a submerged, and usually unstated, emotional aspect. As a practice owner, you must understand this and use it to your advantage. When making the shift in focus from the things you do to the value you deliver, you must take account of the genuine feelings at play. Value is about more than money Feelings are always there and are an important part of the value provided by a Chartered Accountant – no matter how much we try to convince ourselves that it is “just business”. Everyone has clients they like and clients they do not like; phone calls they look forward to making and phone calls they hate making; tasks they like doing and tasks they hate. We are very skilled at telling ourselves stories that turn these feelings into apparently rational explanations supported by facts to support our conclusions – but there is no avoiding the reality that feelings are very powerful, and this is the same for your client. Let us take an example that shows just how powerful this concept is. Complete this sentence: “More than anything, I want my children to be…” I have used this example for decades and the answer is almost always “happy”. Occasionally, the respondent will say “content” or “fulfilled”, but in each case the answer is an emotion. It is never a financial or factual answer. This is a simple example of just how important feelings are. How to gain an advantage Gaining a client does not begin and end with you making clear all of the things you will do for them. For an individual to act, they must first feel confident that you understand what they want. And more importantly, they must also be convinced and motivated to the point that they are committed to working with you. Being convinced and motivated depends on your ability to address the feelings that so often remain submerged, unexamined, and unaddressed. I have heard about all the effort accountants put into planning and preparing for meetings with potential clients, often spending hours crafting a well-designed and high-quality document and accompanying presentation. But they then go on to tell me that, even as they are discussing the document or giving the presentation, they know it is just not working. Almost everyone has experienced this in some way, but many simply continue as if the submerged feelings are not there or are insignificant. The habitual pattern is to press on with more information, more facts, more details. The result is that you completely overlook the reality that the submerged feelings are the decisive factor in the ultimate success of any relationship. It is much more useful to bring these feelings to the surface. You do this by using questions to draw out how the work you are discussing with your client will make them feel. The truth is that few clients care about exemplary management accounts or pristine submissions. Some do want to use their cash more effectively or to have a clear tax plan in place, but everyone wants to feel the peace of mind or sense of security that these actions bring. Yet, many accountants spend too much time talking about the surface facts, the facts that – even when they are dealt with well – are, at best, efficient and uninspiring. The often-unacknowledged truth is that the feelings you create in your clients are just as valuable in building long-term relationships as the work you do. When you deal with the surface facts well, but the submerged feelings are left unattended, there is the illusion of progress, but the relationship is merely routine with little enthusiasm. New clients in particular will sometimes engage you as part of their initial wave of enthusiasm, irrespective of the work you have done, but that will undoubtedly be a passing phase. The worst-case scenario is where the factual, practical aspects of the relationship are not adequately clarified and addressed, and the submerged feelings are also poorly dealt with. If this is the case, the client may accept you as a necessary evil, and you both bump along for a short time until your client moves to another practice. Even if they stay, these are the clients that are difficult to deal with, slow to pay, and frustrating to have. Only when you take control of, and actively deal with, both the surface level factual tasks and the submerged feelings do relationships take off. When this happens, it is of real value to both you and your client. These are the client relationships you want – you are both in step, you both work well together, and you both feel positive about the work. Too often, however, this kind of relationship is left to chance because the influential role of submerged feelings is seldom acknowledged, discussed, and actively addressed. But you can make these positive and rewarding client relationships a matter of choice. Just get into the habit of raising your clients’ understanding of the importance of the positive feelings generated by working constructively with you as their accountant. Ask about the areas they want to be confident in; probe how putting their affairs in order will reduce stress; and test and draw out the peace of mind they will get. As you become skilled at eliciting and addressing these submerged feelings, you will set yourself apart from your competitors. Move your emphasis from what you do to the value it brings, and then take the critical step of drawing out and addressing the submerged feelings that are most important to your client.   John Kennedy is a strategic advisor. He has worked with leaders and senior management teams in a range of organisations and sectors.

Dr Annette Clancy explains why employees’ mental health should be the organising principle for businesses in the 21st century. 20-30% of us will experience mental health issues during our lifetime. Could the quantity and quality of work have something to do with this?  A recent study conducted in the UK shows that one-third of us are not happy about the amount of time we spend at work. More than 40% of employees are neglecting other aspects of their life because of work, which may increase their vulnerability to mental health problems. As a person’s weekly hours increase, so do their feelings of unhappiness, worry and anxiety. Employees’ mental health is affected by their roles. For example, we might expect to see mental health issues in workers who deal with trauma and violence every day, but studies also show that workplace culture, bullying, disciplinary processes, and toxic workplace relationships all contribute to deteriorating mental health. Many businesses have policies for mental health and workplace wellness, but for those who are trying to cope with challenging workloads and suffering at the same time, policies may not be enough. Very often, people hide what they are feeling for fear they will be stigmatised or punished. Policies need to be backed up with empathetic intervention by managers who have the right combination of ‘hard’ and ‘soft’ skills. Yet, managers are rarely trained to either recognise or manage conversations with team members who may be experiencing mental health difficulties. So, what can managers do to de-stigmatise mental health issues? 1. Create an organisational culture where there is respect for people. This sounds simple, but in practice, it rarely is. Most mental health issues arise from toxic relationships, bullying, harassment or power dynamics. Changing the culture around this would go a long way in helping to eliminate some mental health issues. 2. Train all managers and team leaders in ‘soft’ skills. Help people develop the ability to listen to what is not being said and read body language so that they can pay attention to those they manage. Stress and anxiety are felt, not spoken, so managers must be attuned to how it is expressed. 3. Encourage a culture of openness about time constraints and workload. Employees must feel able to speak up if the demands placed on them are too high. Also, ensure that employees’ jobs are manageable within the time for which they are contracted. Expanding job creep is one starting place for stress in organisations. Monitoring this aspect of an organisation’s behaviour alone could impact significantly on mental health. 4. Allow staff to attend counselling and support services during working hours, as they would for other medical appointments. This proactive initiative sends an important signal that mental health is a priority in your organisation. The World Health Organisation (WHO) defines mental health as “the state of wellbeing in which every individual realises his or her own potential, can cope with the normal stresses of life, can work productively and fruitfully, and is able to make a contribution to her or his community”. The WHO definition provides a policy template for organisations wishing to create a culture in which the mental health of all workers is prioritised, not only those with mental health issues. It offers an interesting insight into how an organisation might be structured if mental wellbeing was the organising principle. As mental health issues continue to increase both within and beyond the workplace, perhaps the WHO definition isn’t so far-fetched. Putting people at the centre of organisations used to be the way we did things; putting the mental health of employees at the centre of organisations may be the way we need to do things in the 21st century. Dr Annette Clancy is Assistant Professor of Management at UCD School of Art, History and Cultural Policy.

Far from being ‘nice to haves’, diversity and inclusion remain vital during the COVID-19 crisis and could be even more important in its aftermath, writes Rachel Hussey. Our collective experience during the COVID-19 pandemic has given rise to a considerable amount of discussion and analysis about how this experience will ultimately change the way we live – or want to live – when the crisis subsides. The pandemic, and our response to it, has called into question many aspects of life we took for granted. The world of work has been turned on its head. The most obvious and immediate impact is that most of us are working from home (or, more accurately, at home during a crisis trying to work). The pandemic has caused us to examine the essence of the ‘workplace’ and we are trying to imagine how the future of work during, and after, COVID-19 might look. As the pandemic begins to ease and we begin to return to our former workplaces for at least some of the time, flexibility will be more important than ever. Parents will have to manage childcare and work, possibly in the absence of schools and crèches. Traditional work practices may no longer be possible. We will need to have flexibility around work organisation, meeting times and general time planning, and allow people to control how they plan their day. This will mean not only continuing with a significant element of working from home, but also introducing genuinely agile working practices in the future. The former world of work is probably changed forever, and we cannot – and should not – seek simply to recreate it. Now we have reached the end of the beginning, the focus on diversity and inclusion has begun to re-emerge with some interesting new perspectives. Many organisations are looking at cost-cutting measures and there is a risk that diversity initiatives might be regarded as non-essential. I believe that inclusion and diversity are as – if not more – important during this crisis as they were before and will continue to be as we emerge from the current crisis. Organisations that had a strong focus on inclusion and diversity before the crisis were better equipped to deal with it when it happened. The starkest example of this is that organisations and firms that had agile working policies and practices in place, which mostly resulted from strategies around inclusion and diversity, were best placed to make the transition to working from home. Firms that resisted flexible working took longer to get set-up remotely and back to business. The last couple of months have demonstrated beyond doubt that it is possible to run a professional services firm in a dispersed way. Some partners and other leaders who may never have worked from home are now forced to do so and realise that people can be as (or even more) productive working remotely. The COVID-19 crisis has busted the myth that agile working does not work. Of interest too are the leadership traits that have been important in this crisis. They include compassion, empathy, humility, and putting other people ahead of yourself. These traits tend to be associated with women, though they are of course found in many men too, and they are becoming more highly valued at this time. Inclusive leadership is particularly essential. Managing teams remotely involves being alive to team dynamics and being mindful of people on teams who might be isolated or feel excluded. Even on video conferencing calls, inclusive leaders will try to include each team member in the discussion. Making people feel included will help maintain productivity and motivation. It has been established beyond doubt that one of the clear business benefits of diverse teams is increased innovation. Now more than ever, companies and firms need to innovate to respond to this crisis. It is, therefore, critical to focus on team composition to ensure that they have the right balance of experience, perspective, and cognitive diversity to nurture innovation and generate the best business results possible. Specific organisations recently reiterated their commitment to diversity and inclusion publicly. At some stage, and let us hope that it will be sooner rather than later, we will emerge from this crisis and companies and firms will again be competing for the top performers. Companies and firms that stay the course and keep a sharp focus on diversity and inclusion during this crisis will be best placed to attract that talent. Once the crisis is over, companies and firms that do not stay the course will have some serious catching up to do. Rachel Hussey is Chair of 30% Club Ireland and a Partner at Arthur Cox.

As the saying goes, rough seas make great sailors and the new President of Chartered Accountants Ireland, Paul Henry, has abundant experience of leading in times of crisis. Perhaps in a sign of the times, Paul Henry sat down at his desk at home in Belfast to conduct this interview. With the lockdown in full effect, he was working from home as he sought to run his commercial property business and prepare for the year ahead as President of Chartered Accountants Ireland. And it will be a busy year indeed. In July, Paul will also become Chair of CCAB – a forum of five professional accountancy bodies that collaborate on matters affecting the profession and the broader economy. There will undoubtedly be much to discuss. From recovery to regulation, Paul will lead the charge for both Chartered Accountants Ireland and CCAB at a turbulent and fragile time in the island’s history. The global COVID-19 pandemic has spawned an economic malaise that may well be compounded by the effects of Brexit but leading through such crises was far from his mind when he decided to become a Chartered Accountant in the 1980s. The path to industry From an early age, Paul was determined to become both a Chartered Accountant and businessman – influenced in part by the apparent success of his friends’ parents. Upon leaving his science-focused secondary school in North Belfast, Paul attended Queen’s University Belfast where he studied accounting at undergraduate level before completing what was then known as the Postgraduate Diploma in Accounting. He readily admits that his first year studying accounting was “a wee bit of a mystery” but with some perseverance, both the art and the science of the subject began to make sense. Paul went on to qualify as a Chartered Accountant with PwC Northern Ireland in 1989, where he met his wife, Siân. He subsequently held positions with the Industrial Development Board, Enterprise Equity, PwC (for a second spell), and ASM Chartered Accountants before joining his current firm, Osborne King, where he is now a Director and equity partner. The move from practice to real estate advisory came about when Paul was working with ASM Chartered Accountants, primarily on corporate finance projects. “I had been speaking with the team at Osborne King about developing the business and the commercial skills they would need to do that, so I helped to shape a role and job specification for them,” he said. “They went to market with the role and close to the closing date for applications, one of the team said: ‘We’ve received some good applications, but we didn’t receive one from you’. For me, that was the light bulb moment because it was precisely the career I wanted. So, I went through the application process and thankfully landed the job.” Becoming a businessman Paul’s evolution did not end there, however. Having joined Osborne King in 2000, he led transactions involving sophisticated financial structures including private finance initiative and public/private partnership deals. Business was booming but unbeknownst to most, the financial crash of 2008/09 was not far away. The global downturn that followed decimated many sectors and industries – not least commercial property. Osborne King, like many others, felt the pinch but out of crisis comes opportunity and Paul went on to achieve his second childhood dream: becoming a fully-fledged businessman. “Through a series of developments and the downturn in particular, I ended up completing a management buyout of Osborne King with one other colleague. We restructured the business and the shareholders haven’t looked back since,” he said. With the benefit of hindsight, Paul can identify several lessons that are pertinent today as employers attempt to stay solvent and keep their businesses afloat. “The critical thing is to be open and honest with your people. In a downturn such as this, businesses must reduce their cost base and conserve cash, and that means having difficult conversations – particularly with staff and suppliers,” he said. “But if you communicate clearly and often, people will trust you and that is a precious asset to have. So be straight with them about the challenges facing your business, but don’t forget to repay that trust when the business landscape improves.” Indeed, one of Paul’s proudest achievements is keeping the full Osborne King team intact throughout the 2008/09 crisis and its aftermath. “We were probably the only commercial real estate firm that didn’t make any redundancies during the last recession,” he added. “We did that because, in my mind, we have great people and it is our people that will help us thrive once the economy recovers.” The current crisis Nobody expected to be in an even worse economic predicament just 12 years later, but the onset of the COVID-19 pandemic has led to plunging world economic growth. Businesses are operating in a near-absolute environment of uncertainty as governments scramble to provide the necessary lifelines for corporations, entrepreneurs, and their staff. In that context, Paul has been impressed by the agility and ingenuity of the governments in the Republic of Ireland and Northern Ireland in responding to the needs of both businesses and citizens. “People are often very critical of the public service but in recent months, we have seen its very best elements – not least in the health sector and emergency services. We owe a huge debt of gratitude to those who put themselves in harm’s way to keep us safe,” he said. Paul is also keen to highlight the vital role of the Institute in helping its members through the pandemic. “In times of adversity, we become incredibly creative and innovative and the Institute has responded very well to offer members even more services – whether it’s the COVID-19 Hub on the website or our regular webinars on soft skills or the Wage Subsidy Scheme,” he added. “Since March 2020, the level of member engagement with the Institute has increased significantly so we can see clearly that our Digital First programme is the right strategy. If there is a silver lining to all of this, it is that we have been forced to accelerate many of the innovative member services initiatives that were already on our agenda for 2020 and beyond.” All of this, he said, complements the traditional role of the Institute as a source of support for its 28,500 members. “CA Support is there to support all members and students in times of difficulty or crisis, and the service has seen an increase in activity in recent months,” Paul said. “Whether you have lost your job, are struggling to cope with uncertainty, or feeling lonely, all members and students can turn to their member organisation for support and guidance, and that is something that makes me immensely proud.” The role of the Chartered Accountant In addition to helping each other, Chartered Accountants will also be relied upon to help steer businesses through the pandemic and towards a sustainable future in what remains a very uncertain economic and regulatory landscape. Paul is hopeful that the global economy will recover relatively quickly, but there remains much to be done even if the economic signals begin to improve. “As we work through the fallout of the pandemic, businesses will need to be aware of the ‘wall of creditors’ waiting for them on the other side of the crisis,” he said. “Although survival is the name of the game at the moment, rent, commercial rates, and other obligations will need to be settled at some stage and Chartered Accountants – both in business and as advisors to business – will need to turn their focus to that issue.” All the while, Brexit rumbles on in the background and although it has the potential to compound the economic woes bestowed on the island of Ireland, Paul points to the profession’s pragmatism as its most valuable asset in navigating the added uncertainty. “The Institute has made clear that it would be preferable if Brexit did not happen, or if it did, that it happened in a planned and managed way with ample time for businesses to acclimatise to the new reality. But Chartered Accountants will play the hand they are dealt and work to understand what role they must play in making Brexit work without judgement,” he said. The President’s priorities Paul takes the helm at Chartered Accountants Ireland at a distinctly turbulent time but as the saying goes, rough seas make great sailors and Paul’s experience – both in industry and practice – gives him a rounded view of the needs of the membership during times of crisis in particular. In the year ahead, the Institute will launch a new four-year strategy that will hopefully outlive both COVID-19 and Brexit and despite the uncertainties, Paul’s focus will remain very much on people, talent, and potential. “When I joined Enterprise Equity, my chief executive said ‘Paul, it’s going to cost me £1 million to train you’. I was thrilled because I thought I was going to be educated in the best universities in the world, but he really meant that I would make many costly mistakes along the way,” Paul said. “In business, you are often backing the jockey and not the horse. It is the people, team and leaders that will get you around the course and win the race, and this focus on people will be a core element of my Presidency in the year ahead.” Paul will also focus on other strategic imperatives during his tenure: building on the recent evolution of the education syllabus, supporting the Institute’s Digital First initiative, and adapting to the ‘new normal’ for students, members and staff – whatever that ‘new normal’ might be. “My key priorities will revolve around member experience. It is vital that we engage with members, both at home and overseas, and become increasingly relevant to members in all sectors,” he said. “Building engagement with our members will be central to that sense of relevance. And as someone who wasn’t engaged with the Institute for many years, I can say with conviction that once members engage with Chartered Accountants Ireland and come to understand the breadth of services and support available to members and students alike, they will be amazed.” Conclusion Paul’s presidency will be a presidency like no other. Travel will be restricted in the short-term, a global recession is looming, and the world of professional services work has undergone a dramatic upheaval. But Paul remains optimistic for the future. “Through our education system, we are equipping the next generation of Chartered Accountants with the skills and expertise necessary to lead businesses into the future and support economic recovery and growth,” he said. “Meanwhile, our members continue to be relied upon as the people who connect the dots, bring people together and make individual elements more effective and valuable by creating and leading great teams. For me, the future is all about empathy, people, and teams – and if we get that right, we can and will recover.”

Teresa Stapleton explains how senior leaders and managers can create a high-performance culture with loyal, engaged, and motivated employees. An estimated two-thirds of companies still conduct annual performance reviews, despite extensive research and employee feedback which suggests that they are outdated. What most companies hope to get from performance management is engaged, motivated, high-performing employees and business success. But the reality is that annual and bi-annual reviews fall well short in supporting these aspirations. They typically involve time-consuming and detailed write-ups of past performance, which have little impact on future results. More and more companies are questioning the value of analysing past performance based on goals set 12 months ago and rating individual performance on a scale to determine rewards. Most managers and staff dread the whole process. Research by Willis Towers Watson found that only 48% of employees report that performance reviews have helped improve their performance, and just 52% think their performance was accurately evaluated. There is widespread consensus that ongoing performance management and the provision of feedback and coaching is a better approach to creating an engaged, motivated workforce. However, the challenges involved in replacing the annual review process, which has been embedded in organisations for many years, can seem daunting. Over the last ten years, several companies have successfully done just that – transformed their performance management processes to re-energise their organisation and employees. While there’s no one-size-fits-all solution, the following themes are worth considering when re-thinking performance management. Performance management philosophy The starting point for changing any process is deciding what you want to achieve. Defining what specific behaviours, values and results you want to encourage, and whether individual accomplishments or team collaboration – or indeed, a mix of both – will be recognised and rewarded is a good first step. Many companies share their vision, values, culture, performance management philosophy, and employee development approach on their websites as it is where prospective candidates go to get a feel for the company and whether it would be a good fit for them.  The traditional levers for recruiting and motivating employees are attractive pay and benefits, competitive bonus schemes, job security and career development prospects. Also, employee engagement and employee experience are increasingly recognised as being of equal importance to attract talent and drive productivity. Some companies have adjusted their rewards model to empower managers to offer smaller incentives more regularly when goals are achieved. Others offer training, educational support, or development programmes to reward strong performance. Providing a positive working environment where employees feel that their work is meaningful and their contributions are valued is now seen as central to attracting and retaining talent. Senior leaders and managers have a critical role to play in building an environment and culture where their teams enjoy coming to work and are committed to delivering exceptional results. Performance appraisal model Companies often adjust their performance management approach over time to reflect changing economic conditions and the latest thinking on business leadership. The bell curve system of performance appraisal, which was widely used for decades by large companies, has been abandoned by most. This model forces managers to rank employees into a bell-shaped distribution curve, with 20% high performers, 70% middle performers, and 10% low performers. The advantages of the bell curve model are that it helps managers differentiate rewards based on contribution and forces them to tackle low performers. However, the drawbacks of the model are generally believed to outweigh the benefits as it can create unhealthy internal competition to be a top performer and get high rewards and undermine collaboration across teams. It was also viewed as unfair and demotivating to employees pushed into the ‘middle’ or ‘low’ categories to hit the numeric requirements of the curve if this does not reflect their actual performance. Many companies have replaced the bell curve model with less rigid approaches that focus on continuous performance management, providing real-time feedback and coaching to improve performance and support personal development. Some companies have even dropped performance ratings altogether as they focus performance discussions too much on past events, shifting instead to highlight learnings from past experiences and create personal development plans for each employee to increase future impact. Objectives and key results There is a real art in setting meaningful and achievable targets that motivate staff to deliver great results. The biggest challenge is often distilling the broad range of activities each employee is responsible for to highlight the objectives that will contribute most to the overall success of the business. All too often, individual commitments or goals are a long list of activities and deliverables, making it hard for employees to see what is truly important and creates the most impact. Including granular details of job responsibilities or adding broad commitments that apply to all employees, while well-intentioned, often dilute the focus on clear, meaningful, personalised priorities. A growing number of companies like Google, Intel and LinkedIn have adopted the ‘Objectives and Key Results’ (OKR) framework to align company, team and individual goals and set targets. The process involves defining three to five objectives for each individual, with key results that are usually stated as numeric targets or other clear measures to track progress. While setting clear expectations upfront is essential, it is just as important to update them regularly to reflect changing company priorities and business direction. Regular performance check-ins Managers play a crucial role in setting their teams up for success by getting to know the strengths and capabilities of each team member and matching each individual’s skills to meaningful goals. Open communication is essential to set performance expectations, stay aligned on progress, and provide real-time feedback to address issues before things go off course – or to capitalise on opportunities to do things quicker or better. Performance and development discussions should take place on an ongoing basis and not be reserved for a formal review meeting once or twice a year. If regular check-ins are happening, there should be no surprises when it comes to performance assessment and rewards discussions. Most companies have performance management tools to track and monitor performance processes. Automated systems can also help streamline the process of capturing peer-to-peer feedback, highlighting blind spots or behavioural issues that managers should address. Conclusion Modernising performance management requires re-thinking the whole employee/employer value exchange. Employees want to do meaningful work, aligned with their values, where they feel they can grow, flourish and be justly rewarded. Senior leaders and managers have a critical role to play in creating a high-performance culture with loyal, engaged, and motivated employees to sustain business growth and long-term success. Teresa Stapleton is an Executive Coach at Stapleton Coaching.