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“We want to get people out of the default habit of jumping in the car for every trip”

As the founder of Bleeper, the Dublin-based bike sharing venture, Hugh Cooney, FCA, is playing a crucial role in supporting and promoting sustainable travel in the nation’s capital A 2016 trip to China prompted a career change for Chartered Accountant Hugh Cooney who would go on to launch Bleeper, his Dublin-based dockless bike rental start-up, the following year. “It was when I was in China that I saw the world’s first standalone bike-sharing scheme,” Cooney explains.  “Up until then, it was all bikes at fixed locations. These standalone bikes each had smart locks which were opened by an app. I really liked the concept, and I spent the next four months or so looking at how to bring it to Ireland.” Path to accountancy His foray into sustainable entrepreneurship wasn’t Cooney’s first career shift. Prior to his 2016 trip to China, he had already lived in Shanghai for five years, working for property developer Treasury Holdings, before returning home to train as a Chartered Accountant. “I moved back to Ireland in 2010. The jobs market was tough at the time due to the global financial crisis. I didn’t want to stick with the property business and decided to add a qualification to my CV. I had always been interested in accountancy and had studied it at college,” he says. “I saw that Chartered Accountants Ireland had launched its Elevation Programme in 2009 to enable people to become Chartered Accountants without a training contract.  “I thought it would be perfect for me and signed up for it in 2010. I got a job in PwC’s corporate finance division, did my Final Accounting Exams in 2013 and became a qualified Chartered Accountant.” A subsequent role with KPMG saw Cooney working on aspects of the Irish Banking Resolution Corporation (IBRC) administration.  “I joined KPMG in 2014 and worked on the sale of IBRC non-performing loans in their transaction services division. We had to get the loan book into a condition where buyers were happy with the information provided,” he says. Then came that lightbulb moment in China and the launch of Cooney’s Bleeper business: “I left KPMG in April 2017 and Bleeper opened for business soon after,” he says. The birth of Bleeper The name for Bleeper came to Cooney one day as he was walking past the Luas stop on Dublin’s Harcourt Street.  “I heard the ‘ding ding’ sound of the Luas. The bikes make a bleep sound when they are unlocked, so I decided to call it Bleeper.” Start-up finance came from a mix of sources. “At the start, I had a joint venture with a Chinese company. They contributed the bikes and I raised money from friends and family as well. We started with a thousand bikes and the Chinese company also made the software we used.” Having the bikes, software and finance in place was just the beginning, however. It’s not possible to simply start a bike-sharing business in a city like Dublin without some form of permit or licence.  For Cooney, this ultimately came down to the introduction of a set of bylaws by Dublin City Council.  “Dublin city centre is so complex and there is such competition for road space, Dublin City Council needed to put some rules around it,” he explains, paying tribute to the speed with which council officials and elected members of the Strategic Policy Committee approved the bylaws.  “It usually takes a few years, but they started working on the bylaws in June 2017 and they were approved the following December.” The council then ran a competition for two licences, one of which was awarded to Bleeper. “We were allowed to put our first bike in the Dublin City Council administrative area in June 2018,” Cooney says. Regular Bleeper users can buy a pass, while less frequent users can pay as they go. The pay-as-you-go rate is €1 to unlock the bike and four cent per minute thereafter.  “Our average trip is 17 minutes, and most people pay us €1.68. Under the bylaws, the bikes have to be locked to a public bike rack,” Cooney explains. “We are fined if they’re not locked to the racks, and we pass that on to the customer concerned. There is a chain on the bike which they use to lock it to the rack. Compliance is very good—less than one percent of users don’t follow the rules.” Since its launch, Bleeper has grown to include electric bike leasing and sales divisions. “People can lease a bike just like a car,” Cooney says.  “They pay by the week and can give it back at a week’s notice. We found that some customers want to buy an electric bike, but they are not cheap. The entry level is €2,000 and they can go right up to €5,000.  “We opened a shop on Lower Bridge Street and people can come in and take a bike for a test ride before they buy. Business is good and we’ve been profitable for the last couple of years. We are growing revenue every year and hope to continue on that path.” Mobility Partnership Ireland Bleeper was one of the founding members of Mobility Partnership Ireland (MPI)—a coalition of shared transport providers launched four years ago—and Cooney was recently elected as MPI Chair for the year ahead.  “MPI started with three member firms, including ourselves, Moby and Yuko. We had realised that all commercial operators in the sustainable transport space were meeting the same State officials. It was time-consuming and inefficient. We decided to come together as a collective for lobbying purposes and to promote sustainable transport generally,” Cooney says. Definitions of sustainable transport can vary. “For me, it is anything that is not a single passenger car journey. A car with four people in it isn’t unsustainable. Anything that is not a single occupancy car journey can be sustainable. “If you read the Climate Action Plan, the goal is to enable 500,000 daily sustainable travel journeys by 2030. It’s not realistic to ask people to give up their cars. People have lots of reasons to hold onto their cars.  “But, if it’s a sunny day, we can get them to ask themselves if they need to drive to work that day. It’s not about whether people have a car or an electric vehicle. It’s about the amount of time they use it.” Promoting sustainable transport Cooney believes more should be done to promote the sustainable travel targets set out in the Climate Action Plan. “I don’t see the Government advertising their Climate Action Plan target for sustainable journeys. They need to get out there and break the target down into smaller steps,” he says. Commercially operated sustainable transport services should be supported as part of the this, Cooney adds.  “A lot of people think public transport is publicly owned and funded but there are lots of alternative commercial providers,” he says.  “It needs a bit of a shift in mindset. All of the incentives and subsidies tend to go to publicly owned services, but more consideration needs to be given to commercially operated sustainable transport services.” Since its launch four years ago, MPI has grown to eight member firms, including Aircoach and FreeNow.  “Our plan is to work closely with the Minister for Transport and the National Transport Authority as one group. We want to break down the ‘us and them’ mentality that currently exists,” Cooney says. “We can easily get to the 500,000 trips target in sustainable transport if we all work together, and I believe we can get way more than that if commercially operated sustainable transport services are supported. “We want to work with the government to get more people out of the default habit of jumping in the car for every trip.” It isn’t always easy to get these ideas across to Government, however. “The process of making pre-budget submissions is very costly and time-consuming for businesses,” Cooney points out.  “You don’t get written answers or clarity on why proposals have not been accepted. There should be a downloadable template on the Department of Finance website. That would make it easier for businesses to make submissions and easier for the department to run the process.  “It’s not unreasonable to ask that they make it easier and to give people feedback on their submissions. We have put forward ways of encouraging people to use alternatives to their cars but haven’t got any response.” On a more positive note, Cooney sees lots of potential for Bleeper to grow.  “Less than six percent of people in Dublin commute to work on a bike. In Amsterdam and Copenhagen, it’s closer to 50 percent. The government target for Ireland is 15 percent. Our goal is to play a big role in reaching that target,” he says. Interview by Barry McCall

Apr 10, 2025
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Burnout: breaking the cycle for the next generation

The safe stewardship of the accountancy profession means tackling the challenge of career burnout and prioritising work-life balance for the next generation, writes Dr. Caroline McGroary, FCA Like many professions globally, accountancy strives to be a beacon of excellence, with our members balancing multi-faceted roles as trusted business leaders and gatekeepers of the public interest.  Bestowed by decades of attracting and retaining the world’s brightest minds, this status ensures the safe stewardship of our profession from one generation to the next.  As we sit at this critical juncture in the history of our profession and contemplate our future, we are propelled to consider some of the greatest opportunities and challenges facing our profession and the next generation of business leaders.  In this article, we delve deeper into one such area of interest—namely the attractiveness of the profession to the next generation and the importance they are placing on well-being and work-life balance (or work-life harmony, as it is now commonly referred to). To focus this debate, we explore the concept of burnout, a topic of major concern for those at any stage of their career and one that is firmly on the agenda of well-being teams across professions, particularly in April, during Stress Awareness Month.   Burnout and the next generation The International Federation of Accountants (IFAC) describes accountancy as “the language of business”. While this adage has been true for more than a century, our roles have changed drastically. In addition to providing robust financial information, accountants now assume the role of business leaders, responsible for actively leading and transforming organisations across industries and regions. Despite these changing roles, it has for many years been widely documented that working long hours, enduring stressful working environments and sacrificing personal time for work demands, is an “accepted culture” in the accountancy profession.  This was further reiterated in a recent study by the Association of Chartered Certified Accountants, which asked young accounting professionals about their experiences. Recurring themes in the ACCA’s Global Talent Trend 2023 report included dissatisfaction with pay, a lack of interest in their work, burnout and concerns about work-life balance and flexibility. This work further highlighted that long working hours—previously considered a badge of honour—now act as a deterrent for younger people wanting to join the industry. These views align with Deloitte’s 2024 Gen Z and Millennial Survey which found that work-life balance was the top priority among respondents who believe long working hours drive stress. Based on these insights, we must challenge whether long hours, stress and burnout is an “accepted culture” in our profession and if so, properly consider the long-term effects on ourselves, our colleagues, our profession and the next generation.  We have learned that burnout can prompt early-career accountants to leave their jobs, and even the profession.  Recognising the potential cost of this, we need to gain better insights into the experiences of this group of professionals.  The value of such research was evident in a study of close to 400 junior accountants published in Australia. Researchers Vincent K. Chong and Gary S. Monroe found that role ambiguity and role conflict led to job-related tension for these professionals, which in turn contributed to burnout. This subsequently led to reduced job satisfaction and organisational commitment, with the final stage being intention to leave the profession. The practical implications of this research were the insights it offered into the drivers and outcomes of burnout, and thus the potential means to better support employees and reduce turnover.  Learning experiences of trainee accountants Reflecting on our role as educators of the next generation of our profession, we also need to consider the impact of burnout on the learning experience of trainee accountants. In research conducted at Dublin City University by Professor Barbara Flood (a Chartered Accountant), organisational psychologist Professor Yseult Freeney and I, we uncovered some useful insights.  In our study of approximately 1,200 trainee accountants in Ireland, we found that these younger members of the profession reported feeling “exhaustion” on a regular basis.  This had a negative effect on their ability to attend lectures, and their interest in and enthusiasm for their studies.  Despite feelings of exhaustion, they were committed to cognitively engaging in their studies, however, as they recognised the importance of passing their exams for career progression.  The main concerns emerging from this research included the type of learning taking place at the trainee stage and how these experiences were shaping their view of the profession—some referred to “feelings of resentment”, “anxiety” and “mental drain”.  For Sinead Donovan, past President of Chartered Accountants Ireland, supporting and advocating for the next generation of accountants is a priority. During her term as President, Donovan had as her theme the “next generation” (#nextgen).  She stresses the ongoing need to understand more about the challenges facing younger accountants and their more experienced counterparts, who act as crucial role models. Donovan also expressed concerns about the findings of a recent study commissioned by the Irish Centre for Business Excellence (ICBE) Skillnet on future leaders’ perceptions, motivations, skills and needs. The study revealed that future business leaders are “stepping out of leadership ambition...to avoid burnout at the top”.  “I would challenge the view that leadership roles needed to be overtly busy and always ‘on the edge’ of stress,” Donovan says.  “While I acknowledge that people still need to be pushed and challenged, the key is knowing when this becomes too much.”  The former Chair of Grant Thornton Ireland sees an important step in addressing this problem as “assigning responsibility back to the employer to help understand the challenges facing these future leaders, provide adequate support, and in turn, showcase how leaders can exist, and indeed thrive, without burnout.” Tackling the ill effects of burnout on younger accountants will be “integral to the future of the profession,” Donovan says. Tackling burnout: the employer’s role Donovan’s view is supported by Gillian Bane, a fellow Chartered Accountant and founder of Well Work 360. Bane established the workplace health and wellbeing consultancy in 2023 having herself experienced burnout in her career post-qualification.  “I wasn’t aware at the time that I was experiencing burnout and, in hindsight, had actually suffered multiple bouts before it stopped me in my tracks,” Bane says.  She highlights the importance of employer support and understanding to help tackle the causes and effects of work-related burnout, as well as the stigma that continues to surround mental health in the workplace. “Employee support needs to be much more than offering employees coping mechanisms, such as mindfulness classes,” Bane says.  “It needs to be a combination of supporting the individual with ways of coping, monitoring work design and workload, improving team dynamics and leadership setting the culture at an organisational level.” Supporting resilience in the profession Chartered Accountants Worldwide (CAW) recently launched its inaugural global report into the resilience of the Chartered Accountancy profession—a groundbreaking study conducted by the CAW Wellbeing Taskforce in collaboration with The Resilience Institute.. This report examines the state of resilience and well-being within the profession, drawing on insights from a global survey of 697 Chartered Accountants.  While Chartered Accountants play a critical role in safeguarding financial integrity, the report found that their work often entails significant stress and complexity. “This research highlighted some of the key strengths of the accountancy profession, such as curiosity, adaptability, creativity and a strong commitment to serving clients and colleagues,” says Dee France, Wellbeing and Support Lead at Chartered Accountants Ireland and Chair of the CAW Wellbeing Taskforce. “That said, these strengths lie alongside challenges such as multitasking, avoidance, worry and sleep deprivation, which over time can reduce resilience, lead to burnout, fatigue and impact negatively on mental health.” The profession now has a unique opportunity to lead by example, cultivating workplace cultures in which well-being is not an afterthought but an integral part of daily practice, France says.  Taking action to reduce burnout There is acceptance that burnout is something that can be experienced by anyone, at any stage of their career, in any profession.  It is a multidimensional concept embedded in an ongoing complex psychological process, and associated with a range of consequences that—if not understood and addressed—will negatively impact our profession in the long run.  As accountants, we can clearly make the business case for why this topic is important and needs further attention. Equally, as members of a profession built on a bedrock of trust, integrity, competence and respect for others, we recognise our moral obligation to take action and encourage our many stakeholders to engage in this important debate.    To this end, we seek the support of the accounting profession and other professions, academics, training firms, well-being teams and senior leadership teams to work together to:   Better understand the concept of burnout; Explore the prevalence of burnout across organisations and professions; Seek to understand its root causes and effects; Provide tailored support and resources for those who may be suffering from burnout or “on the edge”; and Challenge the stigma that still exists around mental health and burnout, as well as acknowledging that it can affect anyone. Collectively, we as Chartered Accountants are in a unique position to change the trajectory of our profession when it comes to tackling concerns like burnout.  In doing so, we will continue to attract the brightest minds and empower the next generation of accountants to go forward to lead our profession in the future.  Dr. Caroline McGroary, FCA, is a Lecturer at Dublin City University and a Council Member and Education and Lifelong Learning Board Member at Chartered Accountants Ireland

Apr 10, 2025
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“Time is the most critical resource we have”

Paula Travers, founder of Travers Accounting Services, has spent close to three decades forging her own path in the world of finance. Now at the helm of her own firm, she reflects on the personal and professional traits that have shaped her success As a child growing up in Donegal, I thought I would like to one day work in a bank. At some point, around the age of 16, I decided that being an accountant would be better.  We had a great accounting teacher in school, and I always enjoyed the subject.  In the pre-internet age, I reviewed as many university prospectuses as I could get my hands on and decided that, rather than study pure accounting, I would do a broader degree.  I opted for commerce at University College Galway (now NUI Galway), choosing the accounting stream in my second year.  After college, I spent the summer working in a bar in London, then came home and applied for as many trainee accountant roles as possible. Eventually, I started work as a trainee with a small practice on the north side of Dublin.  Transitioning from being a college student to training was a shock to the system. I had to work full-time, attend lectures in the evenings and weekends, and I was paid next to nothing. It was tough going, but I was very determined to succeed. Career advancement I would say I have very much steered my own course regarding career advancement.  I learned through experience to trust my gut and make “the next move” when the timing felt right to me. I never let the grass grow under my feet and moved when others may have stayed.  The qualities that have helped me progress my career have included making my immediate boss’s life easier by being reliable, a good communicator and not being afraid to voice my professional opinion when needed.  The ability to communicate effectively to people at all levels has been crucial. As accountants, we work in a people business. It feels good to smash the stereotype of the “boring accountant” by showing you have a personality!  I moved back to Donegal in 2006 at a time when the job market here was quite limited. I spent several years taking on maternity leave cover roles before securing a longer term position as Financial Controller with a company in west Donegal.  Lessons in perspective and boundaries My experience is likely quite different from most pursuing a career in Chartered Accountancy.  My daughter was born during my training contract and I undertook my Professional 3 (now CAP 2) exams when she was only three months old.  I combined my maternity (then just 14 weeks) and study leave, took one week off after my exams, and was straight back to work.  It was very tough, but at that time, the expectation was that you just had to get on with it, and I was very determined to prove that having a child would not derail my career.  I would hope that the situation is better today, but, while statutory leave entitlements have improved considerably, statistics show that motherhood does negatively affect a woman’s career progression, which is unfortunate and unnecessary.  To retain this cohort of talented and experienced professionals, employers must facilitate flexibility above all else. For me, the key to work-life balance remains elusive, however. This is something I’m still figuring out.  As I get older, and with the passing of both my parents within the past 10 years, it is a question of priorities. Work must take priority at certain times, and life must take priority at others.  Challenges that may have stressed me out 20 years ago, don’t anymore. This comes down to perspective and realising that time is the most critical resource we all have.  The biggest challenge for me is establishing a good balance between work and rest. Being self-employed, the temptation is there to work all the hours.  If you do that, however, other important parts of your life and wellbeing will eventually suffer, such as your health (both mental and physical) or your relationships.  It is crucial, therefore, to protect your time at all costs by establishing boundaries that align with your life.  Your energy is a valuable resource; don’t waste it on people and situations that drain you. Have the confidence to set unapologetic boundaries, rather than taking on the role of a martyr. The challenge lies in setting up boundaries and structures in your working life and adhering to them. Always strive to maintain perspective, as it can significantly alleviate the stress of balancing work and personal life.  Finding confidence and support Since becoming self-employed, I have connected with networks of female business owners and joined smaller groups of other accountants, both women and men.  I have only tapped into mentoring and networking since becoming self-employed. These networks have been invaluable in providing a sense of companionship and a recognition that most challenges are shared, giving me the confidence to persevere.  I highly recommend hiring a professional coach, particularly for self-employed people who need a sounding board and a space to offload to someone outside their immediate circle.  A coach can provide valuable insights, help you set and achieve goals and hold you accountable for your actions. Coaching is also great for maintaining focus and staying on track. Twenty-nine years of success The foundational training and experience you receive as a Chartered Accountant sets you up to work in practice, industry or as your own boss. That has been my trajectory.  The advancements in technology and the advent of social media mean that self-employment as an accountant is incredibly accessible, and I have created a business that works for me.  When I entered this profession (29 years ago this month), this was not something I thought was possible.

Feb 10, 2025
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“AI is much more than a tool; it is an entirely new way of doing business”

The AI revolution is well underway, driving unparalleled progress in business and finance. Microsoft Ireland CFO Áine Nolan shares her experiences and insights Artificial intelligence (AI) represents a valuable opportunity for Ireland to enhance our productivity and solidify our digital leadership in Europe.  This is according to Áine Nolan, FCA and Chief Financial Officer with Microsoft Ireland, who spoke at the recent Chartered Accountants Ireland Technology Conference, about how AI is revolutionising the finance function and driving unprecedented efficiencies.  “We have a thriving tech scene in Ireland, a highly educated workforce and really smart government policies. We can really become a hub for AI advancements,” Nolan said. The potential is significant, driven by the rapid emergence of AI as a commercial proposition and its popularity with users in both their lives and work. “The rate of AI adoption currently is somewhat unprecedented,” said Nolan. “Generative AI is capturing, distributing and democratising intelligence for everyone and that is a powerful concept.”  AI uptake in Ireland Microsoft Ireland recently partnered with Trinity College Dublin Business School to conduct research into the uptake of generative AI in the Irish market. Published in March 2024, the Generative AI in Ireland 2024 report found that 49 percent of respondents were already using the technology in some form in their organisation. “This research is less than a year old and already out of date, which just shows you how fast the rate of uptake is. We are due to release new research in March this year, which shows that adoption rates have since risen to about 70 percent,” Nolan said. Despite its proliferation in Irish workplaces, not all employers are, as yet, fully equipped to manage the implications of the AI age. “Through our research with Trinity, we have found that employees are bringing their own AI to work, with or without their employer’s consent. This ‘shadow’ gen AI culture creates risks for employers who really need to have guardrails in place,” Nolan said. “There is also sometimes a view that AI is just an add-on productivity tool you can slot into your existing workflows, but this fundamentally underestimates the magnitude of behavioural change and organisational transformation needed to unlock its value.” It will take time and a great deal of change management to integrate AI successfully as a new dimension of work, Nolan said. “People often make the mistake of simply asking how they can apply AI to their existing processes, but, fundamentally, they should be asking what they need AI to do and how it can make their processes more efficient or facilitate innovation—even creating a new service for our customers, for example.” The dawn of the AI agent Although many people currently use AI as a kind of “virtual assistant”, helping with everyday tasks, such as organising their work calendar or automating note-taking during meetings, the technology is set to assume a far more prominent and proactive role. “In the future, AI will operate on your behalf—as an agent—allowing you to eliminate tasks from your plate altogether,” Nolan explained. “This might mean making autonomous decisions for your IT helpdesk and, eventually, managing your full device refresh, from examining your POs right through to ordering new devices, checking your budgets and getting the necessary human approvals at the end of the process.  “A more complex example might involve AI looking after lead generation for your business by sourcing and emailing potential customers or acting as a customer support agent in a much more complex way than a chatbot, where it is actually making decisions on behalf of your organisation.” Microsoft and AI in finance Already, Nolan and her finance team at Microsoft Ireland are reaping the benefits of the organisation-wide implementation of the software giant’s AI technology. “Our global CFO Amy Hood consistently challenges our finance team to use our own technology to improve our processes. Her mantra is really clear—by adopting innovative technologies, finance will strengthen its business leadership through compliance, accuracy and efficiency.” And, as CFOs across all organisations assume an increasingly strategic business role, AI will become even more fundamental to their work day-to-day. “The role of the CFO is changing rapidly and, as finance leaders, we need to play a lead role in developing a clear AI strategy, ensuring our organisations have the necessary capability, technology and stakeholder buy-in. The rate of AI adoption is unprecedented and we need to be ready,” Nolan said. “In the last 12 months alone, I have seen big changes in how our own AI at Microsoft has been able to generate intelligent comments for us, as we work through our balance sheet and P&L variance analysis,” Nolan said. “We have had a big win in the efficiency of our contract review process, where we once had a full revenue recognition team analysing all of our contracts to account for them. “Now, we have AI reading 10,000 contracts a year and sorting them into low-, medium- and high-risk categories for us.” This means the revenue recognition team is only required to review high-risk contracts manually.  “We’ve had other big wins in journal entry anomaly detection, which has helped reduce risk on our financial statement—and our AI is now able to produce the first draft of the statement, reducing time spent on this work by about 15 percent.” Microsoft’s generative AI is creating models that recognise patterns in the financial planning and analysis data used to predict outcomes. “We’ve moved from bottom-up to top-down budgeting, reducing time spent on budgeting analysis from six months to six weeks,” Nolan said.  “This means we have much more time to think strategically and analytically—and to have a seat at the table in terms of our influence in the wider organisation. For us, AI is well and truly here.”

Feb 10, 2025
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“Age discrimination is often under-represented in DE&I discussions”

Older professionals have much to offer in today’s multigenerational workplace, but many continue to experience the ill effects of negative attitudes and bias As Honorary Treasurer and Interim Chair of Age Action Ireland, Colm Nagle, FCA, continues to apply the experience honed over the course of a 45-year career begun in 1979 when he joined Stokes Kennedy Crowley as a trainee. The longest-serving director of Age Action Ireland, the national advocacy organisation for older people and ageing in Ireland, Nagle is proud of his ongoing contribution to its work, in particular its annual Positive Ageing Week. Kicking off this year on 30 September and continuing through the first week of October, Positive Ageing Week (PAW) celebrates the contributions of older people and promotes their agency. As the dust settles on another successful PAW, which this year featured over 500 events around the country, Nagle is turning his attention to other priorities on the agenda of Age Action Ireland, which has published two annual State of Ageing reports since 2022, highlighting the reality of growing older in Ireland. “Age discrimination is often under-represented in discussions of diversity, equity and inclusion, and, in the workplace, ‘age’ is often left out of company’s DE&I policies and initiatives,” Nagle says. “So far in our culture, we just have not had the same conversations and awareness-raising around ageism that we have had around other forms of discrimination. People haven’t learned to stop and think about ageing or question implicit beliefs they might have internalised.”  The World Health Organisation’s Global Report on Ageism, published in 2021, found ageism to be a prevalent and serious form of discrimination.  “The report demonstrated that we come to accept ageist beliefs from as young as four years old, and that these beliefs – about ourselves and others – can have seriously negative consequences, including worse health outcomes,” Nagle says.  There is, he adds, evidence suggesting that ageism is especially sharply felt in the labour field.  “Age Action’s ‘Are We Ageist’ poll found that unemployed persons were most likely to report recently experiencing age discrimination,” Nagle says. “Ageism is also known to interact with and compound other forms of discrimination like misogyny, classism or ableism, and so, to effectively eliminate these kinds of discrimination, we must also be aware of what ageism is and how it works.” A priority for Age Action is to involve everyone in our society in the project of reframing ageing and changing how we think, act, and feel about older persons.  Rethinking mandatory retirement age Many people now are living more active lives well into retirement age and want to defer full retirement for as long as possible.  “Fundamental to all of us continuing to have choice and control over our employment as we age is the existence of mandatory retirement clauses in contracts,” Nagle says. “Currently, our Equality Acts make an explicit exemption that allows for this kind of age discrimination, so that people can be forced to leave their jobs for no other reason than that they have reached a certain age. This is based on harmful stereotypes of older persons, that deny their skills and capacity.” Mandatory retirement implies that in older age, we are all the same, Nagle says. “It is deeply concerning that through our laws, the State is currently legitimising these kinds of ageist beliefs. It forces older persons out of workplaces and thus contributes to social exclusion,” he says.  “At Age Action, we have spoken to people who, 10 or 20 years on, are still angry and hurt by having been forced to retire. “We have long campaigned for the abolition of mandatory retirement and, in April, we made our case before the Oireachtas Committee on Employment, which subsequently recommended it be abolished. “It has already been outlawed in Canada, Australia, New Zealand and the US, in some cases for decades, and their labour markets are still functional and productive.” Negative bias and discrimination Well before retirement age, professionals can feel the negative effects of unhelpful biases as they mature through their careers. Seventy-five percent of respondents in the most recent Workplace Equality Study published by Matrix Recruitment identified ageism as an issue in today’s workplace. More than two-thirds, meanwhile, said workers over the age of 50 have fewer promotional opportunities then their younger colleagues, up 19 percent points on the previous year’s findings.   Commenting on the findings, Kieran McKeown, Managing Director of Matrix Recruitment, said they were “hugely disappointing.” “There is a widespread view that professionals aged over 50 have fewer promotional opportunities than their younger colleagues, but the reality is actually quite the opposite,” McKeown says.   “On a more positive note, the majority of respondents surveyed (89%) agreed that people over the age of 50 have as much to contribute to the workplace as those under 40, and this is an opinion we, at Matrix Recruitment agree with, given the calibre of the candidates we speak to on a daily basis in this age group.”  Despite this, McKeown believes older and more experienced professionals in the Irish market remain something of an “untapped talent pool.” “It is quite a complex issue but there appears to be an unconscious bias against older candidates and a poor understanding of, or appreciation for, what they can bring to a workplace,” he says.  “There is a view – a misguided one, in my opinion – that if you are older, you are less likely than your younger peers to be considered capable, adaptable or willing to embrace something new. “We are living in a digital age in which transformation is constant. Given that half of our respondents were of the view that more mature candidates may not have ‘21st century’ IT and digitalisation skills, it is likely that employers think the same way.   “In my experience, the over-50s are highly skilled and actively embrace technological change. Together with their years of experience, this is a group whose contribution to the workplace cannot be underestimated.  “Of course, how people in their 50s are perceived varies greatly from person to person but populations are aging, working lives are lengthening and graduates are joining the workforce later – so 50 is young.” The Matrix Recruitment Workplace Equality Study found that mature workers were considered to have better life skills and those aged over 50 were also rated higher when it came to mentoring and guiding colleagues.  “Forty-eight percent of our respondents consider mature employees to be more reliable workers than their younger cohorts, who statistically are more likely to job hop,” McKeown says.  “Employers find that there are lower staff attrition rates with more mature workers who also have strong interpersonal skills and an equally strong work ethic. And of course, they bring to the workplace years of life experience alongside the expertise they have built up in other roles.” The biggest challenges facing older candidates in today’s job market often “come from within,” McKeown says.  “Losing confidence, feeling they are too old to move job or upskill – or simply not knowing how to go about driving change – are all barriers we see among candidates in this age group,” he says.  “I would encourage anyone considering a career or job move to speak to a recruitment expert.  We can help identify any gaps in their skill set or job spec and help them recognise and promote their transferrable skills.  “There are also lots of tools, such as LinkedIn, which can help individuals stay on top of industry trends and grow their network and connections.  “At Matrix Recruitment we have supported and placed dozens of candidates over the age of 50, including those looking for a new job, a different career or re-entering the workforce after many years. My advice is to get off that fence, speak to an expert and go for it!” Liberation from the rat race For Pat Barker, FCA, sitting on the fence has never been an option. A trailblazer for women in the profession, Barker sat her accounting exams in 1973, becoming only the 20th female Chartered Accountant in Ireland. “I didn’t have a master plan, but seemed to rocket from one opportunity to another,” she says now.   “Generally, I was offered chances and I probably said ‘yes’ to too many and found myself active all the time. Luckily, I am fit and healthy and had lots of energy, and I reflect back on a very packed work and non-work life.”  Barker served her articles with Stokes Bros & Pim in Dublin and then relocated to the UK for a time, becoming Partner with an accounting firm in Manchester and working at Manchester University as a Principal Lecturer.  She was appointed Lecturer at Dublin City University in 1980 and progressed to Senior Lecturer, Associate Dean of the Business School and Vice-President, Academic. Today, Barker continues to lecture in business ethics at DCU. “When you get older, you are liberated from the competition of your career trajectory and you must then decide, ‘What am I going to do now? Am I going to take up golf and play bridge and drink Chardonnay in the afternoon?” she says. “I thought about that and decided it wasn’t for me and the joy for me in continuing to lecture and to serve on boards is that I no longer feel the need to prove myself through my work. “I do not want to lose my capacity – my skills – as a Chartered Accountant. I do not want to stop applying these skills. I want to continue learning about what interests me, and to apply what I learn in the work I do. “That professional decision-making and problem-solving part of me continues to matter enormously to me and, these days, it is enhanced by an ethical overview. Continuing to work when you are older and out of the rat race is a kind of liberation.” Benefits of a multigenerational workforce With an ageing population, longer life expectancy and delayed retirement, workplaces in Ireland are becoming increasingly multigenerational, says Dee France, Wellbeing Lead with Thrive, Chartered Accountants Ireland’s wellbeing hub.  “Fostering a positive age culture is crucial to the Irish workforce and its future, but the importance and value of older employees in their workplace can be seriously overlooked,” France says. “An ageing workforce isn’t a burden; it is an opportunity and there are many business benefits to having a multigenerational workforce.  “With age comes a wealth of experience and with skill and labour shortages reported, employers should not overlook older employees but focus instead on actively retaining and retraining them to address growing talent shortages.” As France sees it, older workers bring an abundance of knowledge, experience and skills that can be invaluable to employers.  “Longer periods in the working environment allow employees to acquire and cultivate significant soft skills that are often so important and beneficial to both the company and younger employees – interpersonal and communication skills, for example, problem-solving and critical thinking along with other leadership qualities and abilities,” she says. Supporting and advocating for age-inclusivity By supporting and advocating for an age-inclusive environment, employers can retain these important qualities in teams, ensure knowledge transfer and provide meaningful and symbiotic mentorship opportunities.  “Failure to address the needs of an ageing workforce is a common issue when employers look to implement supportive work practices,” France says. “In this digital era, there can be preconceived notions and age-related assumptions surrounding older workers, such as their ability to embrace digital transformation, reluctance to adopt new processes and ways of working, or difficulty shifting to changes in company culture. “Many employers can also overlook the importance of providing flexible working arrangements for older employees, making it easier for them to remain in the workforce.”  It is crucial to implement policies that allow accommodations for an ageing workforce for part-time work, job-sharing or remote working, France says. “I would also advise considering phased retirement plans that allow employees to reduce their working hours gradually while maintaining a connection to the workforce.  “This approach can improve retention and reduce stress, allowing employees to continue contributing to the business for longer.” Supporting older workers: advice for employers  Embracing age inclusivity is not just a social matter, it is a business matter too, writes Dee France.  As Ireland’s demographics evolve, businesses must adapt and embrace the potential an age-diverse workforce can unlock. Creating a culture of belonging to foster equitable, inclusive and thriving workplaces that value diversity, including age diversity, is key to supporting a growing workforce.  Employers should actively promote age-friendly policies, avoid reinforcing stereotypes and encourage intergenerational collaboration by fostering mentorship programs that allow employees to share their generational knowledge, creating a mutually beneficial learning environment. Employers should also develop and prioritise well-being initiatives that support an ageing workforce.  Offering health insurance benefits, wellness programs and access to resources like mental health support or fitness programs can significantly improve employees’ quality of life.  Additional tailoring of benefits such as regular health check-ins and adjusting job demands to accommodate any limitations an individual may have, can help ensure that employees can continue working comfortably. Supporting the well-being of older workers through tailored policies on health, flexibility and career development can help them stay engaged and productive, ultimately benefiting the wider organisation.  Positive ageing initiatives can also help reduce turnover, increase job satisfaction and enhance loyalty within the organisation. Positive ageing in the Irish workforce is not just a trend but a critical component of building a resilient, productive and inclusive workplace.  Employers must recognise the value of older employees and take proactive steps to support them.  By addressing common pitfalls and adopting best practices, employers can create a work environment in which workers aged over 55 feel valued, supported and empowered to continue contributing to the success of the organisation. Dee France is Wellbeing Lead with Thrive, Chartered Accountants Ireland’s dedicated wellbeing hub  

Oct 09, 2024
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Diversity, equity and inclusion toolkit for start-ups and SMEs

Small businesses don’t need big budgets to kickstart DEI initiatives. Conor Hudson and Hugo Slevin outline some practical first steps to success from the outset Last year in Ireland, close to 1.2 million people around the country were employed by small- and medium-sized enterprises (SMEs), representing more than 90 percent of all businesses in Ireland.  While Chartered Accountants play a pivotal role in working with these firms and supporting their needs and requirements, many are also operating as, or directly employed by, SMEs.  As diversity, equity and inclusion (DEI) initiatives become increasingly important in today’s workplace, there is a need to ensure that support is provided to SMEs and start-ups developing and implementing their own DEI strategies.  Larger employers will have substantial resources dedicated to DEI, whereas SMEs and start-ups are more likely to face challenges in developing successful strategies due to limited budgets and often already stretched employee time.  This does not mean that these challenges are insurmountable, however. Numerous resources are available to support smaller businesses in their DEI journey, and with the right approach, many will find that a good DEI strategy will support a happier and more productive workforce. Why is it important for SMEs to have a DEI Strategy?  Having a DEI strategy can bring many benefits for employees and business owners alike.  From an employee standpoint, being recognised and supported – and feeling able to bring their true selves to work – results in greater engagement and trust in their employer, leading to stronger performance.   For businesses, having a recognised DEI strategy can enable access to a wider and more inclusive pool of talent, while also helping to improve innovation due to a diversified workforce with a wider range of views and perspectives.   How should an SME approach developing a DEI Strategy?  In developing DEI strategies, it is recognised that SMEs may face some constraints. It is important that they set realistic goals in the development and implementation of this strategy. Trying to make too many changes or developing a superficial plan is of little benefit and can be damaging in the longer term.  The first steps to DEI success Here are some practical steps SMEs can take to develop an effective DEI strategy:  Identify a leader and ensure ownership of the DEI strategy It is important that a recognised leader within the organisation takes ownership of its DEI strategy. This illustrates that, from a senior level, the strategy is being afforded a high level of priority. While others within the organisation can actively support development, a bottom-up approach may not be as successful. Foster a culture of openness and communication Openly encouraging dialogue and actively listening to employees’ experiences will create a sense of belonging and support diverse perspectives. An internal social group could be a good starting point for this.  Provide DEI training to all staff DEI training can help raise awareness, promote understanding among staff members and kickstart conversations about the business need for an effective DEI strategy. Several non-profit organisations such as ShoutOut (shoutout.ie) offer a wide range of workshops that are affordable and can make an immediate impact. Work with existing groups and organisations Many business groups and representative bodies – Chartered Accountants Ireland and IBEC, for example – offer diversity resource hubs and forums SMEs can leverage to support their DEI journey. It is also worth encouraging employees to volunteer their time and skills to organisations such as BelongTo (belongto.org). Review policies regularly Reviewing your policies, with buy-in from your employees, can help to identify potential biases or barriers to inclusion, including hiring practices, as well as helping you to gauge the success of your DEI initiatives through engagement with your workforce. Make adjustments as required to ensure all employees are treated fairly and make sure any policy changes you introduce are communicated clearly across the board. Conduct employee surveys Conducting regular employee DEI surveys can help you to determine the success, or otherwise, of your diversity efforts by gauging how your employees perceive them and view any supports they are receiving. It is important to make sure these surveys are anonymous to protect employees who might otherwise be hesitant to provide honest feedback. Establish an Employee Resource Group Encourage and support the formation of Employee Resource Groups, allowing employees from minorities to come together and advocate for positive change within your organisation. Regardless of budget limitations, SMEs can make significant strides in advancing DEI by prioritising a commitment to inclusivity, fostering open dialogue, exploring community resources and implementing thoughtful initiatives.  Diverse teams greatly improve talent acquisition and retention, decision-making quality, innovation and insight. True and authentic DEI initiatives will motivate your employees to really sponsor your brand, ensuring your SME thrives in a competitive world.  Conor Hudson and Hugo Slevin are Chartered Accountants and members of members of BALANCE, the Institute’s LGBTQ+ Allies network group The many advantages of DEI strategies for SMEs With Pride 2024 celebrations getting around the world for the month of June, four members of BALANCE, the LGBTQ+ Allies network group of Chartered Accountants Ireland, share their personal views and insights into the importance of effective diversity, equity and inclusion (DEI) strategies in all businesses, including SMEs. Sarah McAleese, KPMG Inclusive DEI initiatives need not always entail significant financial investment for SMEs. From an accessibility standpoint, a standardised email sign-off for meeting invitations, such as, “should you require any additional accessibility accommodations or support, please do not hesitate to let us know,” can serve as an initial step in cultivating an open environment, where employees and clients alike can bring their “true selves” to work.  Offering and providing readily available additional support upfront demonstrates a proactive commitment to ensuring everyone feels supported in the workplace.  Another example of a low-cost accessibility initiative may be introducing designated sensory-friendly hours in specific office areas to cater to the needs of neurodiverse individuals.  It is crucial, however, that while individuals are encouraged to avail of any additional supports, they should never feel pressured to disclose information they are uncomfortable sharing. Cian McKenna, AXA Ireland Creating an inclusive culture in the workplace can start with the smallest acts spurring valuable conversation across an organisation.  Even in a hybrid workplace, watercooler moments are alive and well, with the topic of the day always including new initiatives the company is putting into place.  I have been fortunate during my time as part of the finance team at AXA Ireland to see firsthand the impact DEI initiatives can have across the board. Since starting at AXA, I have seen regular initiatives focused on LGBTQ+ inclusion, such as the introduction of email signatures with the AXA logo in Pride colours, Pride lanyards and our Sports and Social Committee using a Pride theme for their annual summer party (with proceeds going to LGBTQ+ charities).  Most recently, AXA introduced a campaign to suggest the inclusion of pronouns in email signatures.  While these may seem at first like small acts, all have naturally fostered a sense of allyship, encouraging an invaluable sense of belonging and acceptance in our workplace. Eimer Proctor, ASM Implementing DEI initiatives is not just about celebrating Pride, changing your company logo for Pride month or purchasing rainbow lanyards. DEI is an ongoing, inclusive process and small steps can lead to significant, positive change. At ASM (B) Ltd, we have recently embarked on our own DEI journey, and we signed the Diversity Mark NI Charter to demonstrate our commitment to this.  In seeking the Bronze accreditation and demonstrating that we are a gender diverse professional services firm, the first target requires us to develop a DEI strategy with supporting actions to measure what success looks like.  As accountants, we like numbers and data, so – in setting clear and measurable targets for gender diversity – we consider that this will allow us to take those crucial small steps in progressing our DEI efforts. Paul Cassidy, SKY Leasing SKY Leasing has created a DEI policy that is reviewed and refreshed annually. This commitment demonstrates that embedding diversity and inclusivity across people, policies, processes and practices is a key priority for the organisation.  Some of SKY Leasing’s many DEI initiatives include encouraging our female workforce to join and contribute to industry bodies championing women in the workplace, such as Women in Aviation (AWAR).  SKY Leasing’s CFO, Ailbhe Kenny, is a participating AWAR mentor and some of the female members of our team have also participated as mentees, sharing knowledge on best practice and acting as champions and ambassadors for other women in our workplace. Our company also promotes diverse experiences, backgrounds and work styles among employees. This encourages us to embrace how we authentically and naturally approach our own work as well as how we work together.    

Jun 05, 2024
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“Get out and meet with investors who will get to know you and your business”

Johnny Harte offers his advice on the various funding options on offer to start-ups and SMEs and the dos and don’ts of securing investment. As the founder of True Fund Solutions, Johnny Harte advises companies on fundraising, from early-stage seed investment through to later-stage growth funding. The option best suited to your business will, Harte says, depend on what stage of development it is at. “If you’re a very early-stage company, still running through potential ideas, my advice would be to get in contact with your Local Enterprise Office (LEO), which will offer a range of grants for product development, market esearch and sales and marketing strategy,” Harte says. There are 31 LEOs operating within the Local Authority network in Ireland, offering support to start-ups and small businesses looking to expand. Options on offer from LEO to early-stage companies include the Feasibility Study Grant, designed to help applicants gauge the commercial viability of, and potential market demand for, a new product or service. The maximum Feasibility Study Grant amount available varies from 50 to 60 percent of the total project cost, depending on location, up to a maximum of €15,000. The LEO’s Priming Grant, meanwhile, must not exceed 50 percent of the investment required by an applicant up to a total of €80,000. The LEO can, however, approve up to €150,000 in certain situations. A Priming Grant is available to start-ups in business for up to 18 months, employing up to 10 people and trading both in Ireland and internationally, and can be put towards direct business costs or capital items, such as equipment, salaries, consultancy and marketing. “These grants are a good starting point for a lot of young companies,” Harte says. “Because the funding on offer is grant-based; you’re not parting with any equity – but you will be expected to have some degree of market research already done when applying and to be able to match the grant with some of your own funding. “The next step up is Enterprise Ireland (EI), which also has different funding options from the very early stages through to later-stage investments.” EI is the State agency responsible for the development and growth of Irish companies in global markets. According to figures released in May, EI invested €24 million in Irish start-ups in 2023 and supported 156 early-stage companies. Investment was provided through the State agency’s High Potential Start-Up and Pre-Seed Start Fund programmes. EI also offers feasibility grants to start-ups and a broader range of grants, vouchers and business support options to more established companies. Its focus is on manufacturing and internationally traded companies, with scope to scale and create jobs, however, rather than smaller locally traded service companies, micro-enterprises or sole traders. Alongside EI, funding options will typically be in the form of angel investors and venture capital (VC) firms. New figures released by the Irish Venture Capital Association (IVCA) revealed that VC funding for Irish SMEs fell by 48 percent to €258.5 million in the first quarter of 2024, compared to €502 million in the same period last year. The IVCA VenturePulse survey published in late May in association with William Fry, noted, however, that seed funding showed “resilience” in the first quarter, with very early-stage Irish companies raising €40 million. While there was a downturn in funding across most deal sizes, the survey also noted that companies looking to raise amounts of between €1 million and €3 million enjoyed a positive first quarter with funding in this sector rising by 126 percent to €22.7 million compared to €10 million last year. “There’s no doubt it’s a challenging time for those looking to raise investment but there is funding available in the Irish market and it is accessible. Good companies will always attract investment,” Harte says. “Funding levels have dropped but a lot of that is down to fewer larger, later-stage deals. Angel investors are still slightly wary, but activity is picking up and they are starting to invest more again. “On the venture capital side, we are also seeing some newer funds coming into the market, which is likely to boost seed and potentially Series A stage investment over the next few years.” For those entrepreneurs seeking funding, Harte says resilience is key. “Founders take a lot of knocks in their business on a daily basis and securing investment is no different. There is always something that doesn’t go according to plan when it comes to the fundraising process and you’ve got to be able to adapt to that,” he says. “What investors are looking for will differ, but all will be looking for founders who have an in-depth knowledge of their sector, some early traction or validation and they will want to see a strong team with a good track record and potentially a diversified skill set.” Like so much in business, successful fundraising is often built on the foundations of strong relationships. “One of the biggest mistakes I see companies make when they’re looking for funding is the failure to begin the process early enough. They almost always underestimate the length of time it will take to secure funding.” Harte says. “Ideally, you really need to kickstart the fundraising process 6 to 12 months ahead of when you think you will actually need that funding, but it makes sense to be thinking about the relationships you will need to build to access funding from day one. “Get out and meet with potential investors so they get to know you, your company and what your plans are for your business. Companies should treat raising investment like any other aspect of their business so there needs to be a funding strategy and process in place. “You need to identify who your potential investors could be and start those crucial conversations and engagements as early as possible, before you’re actually looking for investment.” Interview by Arlene Harris.

Jun 05, 2024
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Riding the wave of digital transformation

New technologies are transforming the way accountants work and the profession must adapt to and embrace this sea change to foster future success, writes Conor Flanagan How people interact with technology is changing as it becomes increasingly powerful, and our expectations of what it can and should deliver continue to rise.  In our profession, the risk does not come down to a lack of technological literacy or the complexity of new accounting technologies; the risk is that we might ignore the wave of change sweeping through the profession.  If you ride the wave, however small, you will grow and develop with the changing industry. But ignore the wave, and you risk being left behind in the shallow waters of a pre-digital world. Investing in the future Digital transformation should not be viewed as a cost, but rather an investment in the future of your business – an investment that can improve processes and ensure your business is at the cutting edge of technology and the benefits that come with it.  A successful digital transformation can unleash the potential of your business and your team by freeing your time to focus on strategic and value-added tasks, ultimately driving growth. We are all aware of digital transformations that have gone wrong, however, costing some organisations dearly, so what measures can companies take to ensure success? The key to success starts long before the implementation itself begins and relies on: Successful system selection;  A clear understanding of existing business processes;  Key user/management buy-in;  Selecting the correct partner;  A willingness to embrace change; and Understanding your data. Taking time before implementation to focus on the above will help ensure you enter the transformation prepared for an optimal outcome.  This will not only result in a smooth implementation, but by understanding your data and your business requirements, you will also be able to see the true potential of your new solution and help drive your business forward. At the recent Chartered Accountants Technology Conference, held in January 2024, we had the pleasure of hearing from two Irish organisations that recently underwent significant digital transformations.  We heard their stories, alongside the lessons they learned from their own implementation projects and the benefits each delivered. Glanbia’s HANA solution First, we heard from Eoin Butler, Finance Systems Centre of Excellence Lead with Glanbia plc, who shared the global nutrition group’s experience implementing the SAP S/4HANA solution.  S/4HANA is a ready-to-run cloud-based enterprise resource planning (ERP) system. With operations in 32 countries and annual group revenue exceeding $5.4 billion, Glanbia needed a scalable solution with proven capacity to handle the needs of a complex global business.  The vision at the outset, Butler explained, was to “digitise the Glanbia business to drive value”.  It was agreed early on that a brownfield approach would be used for the engagement. This is usually the case if the existing system has been in use for some time and may require significant modifications or integrations during the migration.  In Glanbia’s case, Butler noted that the brownfield approach was one of the key reasons for the project’s success. Although a complex global business, Glanbia opted to work with just one single global instance of SAP ERP Central Component (ECC).  Because the project involved significant customisations and integrations with Glanbia’s existing system, these requirements were considered as a key aspect of the solution selection process.  Already a SAP customer for over 20 years, Glanbia opted to stay within the SAP ecosystem and migrate to a newer version of its existing solution. A significant challenge that emerged at an early stage in the project was the data already held on the existing system. An engagement was required to cleanse and fully understand this data before migration could take place.  Understanding your master data, and multiple data sources, is key to ensuring a successful migration or implementation. Taking time to understand and cleanse this data put Glanbia in a much better position to be able to improve reporting and efficiency.  Finally, Butler pointed out that any implementation on this scale cannot be done alone. A strong internal team, hardware and software partners, as well as helpful buy-in from SAP resulted in a successful implementation for Glanbia. Although there were benefits in finance, such as upgrades to the credit function, the new general ledger module within the SAP solution and profitability analysis, most of the benefits were technological and under the hood, laying the foundation to make Glanbia tech-ready for years to come. Cullen Cleaning Services Cullen Cleaning Services (CCS) is a commercial contract cleaning company operating across Europe. Headquartered in Dublin, its clients include household names such as Primark, River Island and H&M.  At this year’s Chartered Accountants Ireland Technology Conference, Brian Flannery, Chief Financial Officer with CCS, outlined the company’s experience implementing a Dynamics 365 Business Central solution with a business intelligence (BI) warehouse reporting solution on top. Flannery covered the evolving role of today’s finance leader in such a project, which involves leading people through digital change.  In the case of CCS, Flannery noted that the implementation had “accelerated the digital transformation in [the] business”.  Pivotal role of finance leaders The top priorities for CFOs set out in a 2024 Executive Priorities Survey by management consultancy Gartner included: transformation; improving finance metrics; leading change management; and  improving the finance function.  As accountants and finance leaders, we have the skillset to deliver on these priorities. More than that, there is an expectation that we play a central role in leading digital transformation and driving high standards in systems and reporting. Before its migration, CCS had a mainly paper-based solution, requiring team members to enter the same data multiple times while also relying heavily on Microsoft Excel for data manipulation and reporting. It was identified that the move to the cloud would help reduce manual labour by integrating with other solutions. Ultimately, integration improved the accuracy of the company’s data, thereby facilitating greater collaboration between departments. Integrating previously isolated data sources and reducing data entry time provided deeper insight to company management, improving the speed and quality of decision-making. Flannery emphasised the importance of treating system selection and partner selection as two distinct processes.  Although the first partner you speak with may have the solution that meets your needs, it is still worth talking to additional partners.  The partner you choose will become a key player in your implementation journey and, as Flannery put it during his presentation, “becomes an additional employee”.   Like a disruptive employee, a disruptive implementation partner can cause damage that no amount of planning or preparation can help you recover from. Finally, after ‘go live’, Brian stressed the importance of taking time to conduct a review: has the project been a success, and have your goals been met? It is quite often the case that system implementations go live even though parts of the team using it still have unmet requirements.  Review and improve It is important to track additional requirement gaps that arise during the implementation and address them after the new system has gone live as ‘phase two’ of the project.  Scope creep is a looming risk for every digital project; focusing on the key deliverables and timelines is paramount.  The additional scope should be noted and readdressed after the go-live date, if not business critical, because you are never truly finished with digital transformation. So, where is CCS? The company has a fully integrated solution using modern Application Programming Interface (API) integrations. It relies heavily on Optical Character Recognition to automate the accounts payable and data entry processes.  In addition to a Business Central solution, CCS has implemented a full BI reporting solution, sitting on top of the ERP solution and assisting with the preparation of management accounts.  This has taken one day off the month-end close process – an additional day for finance staff to focus on other value-added tasks. Focus on people After reviewing the project, Flannery noted some key takeaways he would keep in mind for any future transformation projects.  The key point to note here is that all these takeaways are people-focused – not technical-focused. For a transformation to be successful, it will be entirely dependent on people.  These systems work. There are thousands of references and case studies worldwide attesting to this, but whether your solution works for you depends entirely on how you approach soft skills and the implementation process itself. The four key points to remember are: Do not under-resource; Communicate clearly and thoroughly; Remember, change does not equal transformation; and Celebrate the wins. To finish, Flannery shared a quote from Albert Einstein: “The important thing is not to stop questioning. Curiosity has its own reason for existence.” Reluctance to embrace technology and change will be the number one occupational hazard facing accountants over the next decade, but it will be people and relationships that drive the successful implementation of new technology.  Future leaders may not intimately understand this technology, but they do understand the importance of embracing a change mindset and working with their colleagues and partners to achieve it.    Conor Flanagan is ERP Lead with Storm Technology and a member of the Technology Committee of Chartered Accountants Ireland

Apr 04, 2024
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“I remind myself routinely that I can do anything I put my mind to”

Maria O’Connell talks to Accountancy Ireland about how, through resilience, adaptability and the support of a strong female network, she has achieved career success I decided to become a Chartered Accountant when I was 16 after reading an accountancy career brochure. I didn’t know any Chartered Accountants at that stage and my school didn’t teach business subjects.  When I was growing up in Cork in the 1980s, career opportunities were scarce and often viewed through the lens of emigration. Qualifying as a Chartered Accountant seemed to offer an exciting career path with many opportunities, travel options and income security.  I qualified with PwC in 1989. The foundational skills underpinning my career – business management, communication, problem solving and technical knowledge – were laid during these years.  The Chartered Accountants Ireland training programme nurtured a highly transferable and versatile skillset, which has been integral to my career success.  Drawing on my bank of achievements  Keen to travel, I moved to PwC in Milan, Italy, in 1989. I learned to speak and work in Italian, integrated into a new working environment and experienced a beautiful country, people and culture. Then, in 1992, I interviewed for a junior finance role with JP Morgan in Milan but was offered the role of Bond Settlements Manager. I had no experience working in the Italian government bond market – a prerequisite for such a role.  However, the Director of Operations at JP Morgan in Milan was a Chartered Accountant and understood the value of my training and related skills. He could see an alternative approach to filling the position.  I took a chance and moved into this entirely unknown world. The job was exciting, challenging, fascinating and demanding. I loved every minute of it. My role at JP Morgan was the start of an exciting career journey, leading me to other incredibly fulfilling financial services roles in Italy and Ireland – roles that rarely followed the traditional accountancy career pathway. When I returned to Dublin in 1994, I focused my job search on companies in the developing International Financial Services Centre (IFSC) and that took me into the asset management industry. Always curious and genuinely interested in people, I continually seek new challenges and opportunities to add value and learn. These traits have propelled me to leadership positions covering strategic, business-critical, transformational and governance initiatives in global-facing organisations, such as Bank of Ireland Securities Services, Bank of Ireland Asset Management, Irish Funds and State Street Global Advisors. I have also been extremely privileged to work with highly talented people with vision and foresight who have always focused on my abilities, experience and potential. These role models provided me with precious opportunities for further development. Of course, I also encountered hurdles as I navigated my way, but every hard-earned success added to my internal bank of achievements, which I draw on to this day when my confidence falters or a challenge seems insurmountable. I remind myself routinely that I can do anything I put my mind to. As women, I think we often tend to focus on what we can’t do rather than what we can. Drawing strength from our bank of achievements will always direct us to our ‘can-dos’. Aligning my career with my life priorities  By 2004, I had three children aged six, eight and 10, and a fourth on the way. I decided to take a career break to focus on my family.  This decision was tough as I had invested so much in my career. Despite having a husband who shared the family workload and a flexible employer, I felt I was always letting someone down – my children, colleagues or clients.  Every family is different and we make our choices based on our unique set of circumstances. My decision to take a career break at that time was the choice that worked best for my family and me. Throughout my career, I have always tried to align my career with my life priorities. This choice was one of many steps on that alignment pathway.  Rebooting my career When I decided to return to work in 2013, my first port of call was Karin Lanigan, Head of Members Experience at Chartered Accountants Ireland, who gave me practical advice and guidance. I was lucky to secure a place on the first Reboot Your Career Programme, run by the Institute to support those returning to the workplace.  The course was invaluable in providing me with the confidence, toolkit and ready-made network to kick off my job search and set me on the next stage of my career journey.  It was not easy to return to the workplace after a nine-year break. Colleagues had passed me out on the promotion ladder, and the world of financial services had changed significantly following the financial crisis of 2008. I faced a very steep learning curve.  I was determined to learn as much as possible, however, concentrating on what I could achieve rather than on others who had moved ahead of me.  All the traits that had propelled my career forward in the past, resurfaced and I was able to move forward again in a senior leadership role at the EU headquarters of one of the largest asset managers in the world.  My advice to anyone rebooting their career would be to leverage the supports available from Chartered Accountants Ireland, your own network and to tap into your existing bank of achievements.  Don’t compare your career with others; focus on your own motivations, what you want to achieve and then go for it. The power of the female network As a trainee Chartered Accountant, many of my new female friendships evolved quickly into a highly supportive and powerful network in which experiences, challenges and solutions were openly shared.  This precious network of women, built up over many years, now extends to diverse roles and disciplines beyond the accountancy profession as well as different generations and geographies.  Building positive relationships as we move throughout our lives ensures that we stay connected with each other – and that we are not merely connections on a list.  None of us signed up to this network ‘overtly’, but we all understand the unwritten rule that anytime we reach out for advice, we will find support. Our natural empathy as women, innate ability to connect with and learn from each other and openness to share experiences are powerful tools in driving and embedding change. More women are holding senior decision-making roles, yet we are still navigating structures designed to cater to a single gender order.  Our networks are critical in harnessing our collective strengths as we and our male colleagues reimagine more equitable, diverse and inclusive structures.  I am grateful to be part of a network of diverse, insightful, talented and kind women. Our networks are intrinsic drivers of positive change and sustain us through tough times. Key lessons as a Chartered Accountant My career as a Chartered Accountant has far surpassed anything my 16-year-old self could have dreamed of. A kaleidoscope of experiences has gifted me these key lessons: Seek out those exciting, diverse, non-traditional roles. Don’t let others discourage you.  Stay curious, always looking for new challenges and new things to learn. Draw strength from your bank of achievements. You can do anything you want to.  Periodically assess how your career aligns with your life priorities. Don’t be afraid to make changes when they fall out of sync. Focus on what you want to achieve and what motivates you. Don’t compare your career with those of others. Value, nurture and leverage your female network. It is a precious resource.  Enjoy the journey. It will take you to amazing places. Maria O’Connell  B.Comm., DPA, FCA, is a consultant specialising in board governance and business strategy. She was formerly Vice President of Business Strategy and Governance at State Street Global Advisors Europe Limited

Apr 04, 2024
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The coach’s corner

Julia Rowan answers your management, leadership and team development questions Q. My organisation is going through a lot of change; there is a new leadership structure at the top, but some changes are still undecided. I am hoping that some roles in my area (which were regionalised about eight years ago) will be recentralised under my management. While this has not yet been decided, the regions have got ahead of this with quite a public challenge to the leadership to retain roles at regional level. They have much more clout than my small team and me. A. I am going to assume that your query is about the quality of the work your function provides rather than simply headcount. In any case, a couple of things are immediately clear: Whatever happens, your relationship with the regional directors, as well as with other colleagues currently fulfilling regional roles, is very important. This ‘inter-regnum’ period could be very useful to all of you (in the regions and centrally) by giving you time to get together to work on issues relating to this restructure with a view to making improvements – no matter the eventual outcome. Perhaps someone on the senior leadership team could initiate and sponsor this. You need to play a long game; organisations make changes all the time and how you are seen to deal with this issue will impact your profile. Avoid ‘either/or’ thinking (i.e. ‘they either report to the regions or to me’). There could be many ways to create win-win outcomes. Until a decision is made, there is room for negotiation (see the book suggestion below). I suggest you carefully work out a couple of positions, including: Your ideal outcome (and how to transition to it); Acceptable outcomes if you don’t get your ideal outcome (e.g. dotted line responsibility, developing the more interesting aspects of your role, new structures to support your team, developmental support, etc); and Unwelcome outcomes (and how to avoid them). It could be useful to work on this with your team. I have no doubt that they would have a lot to add to the conversation. Q. My team is under huge pressure – as am I. I try hard to help them, but they keep coming back with the same issues and they are very negative. A. It is the leader’s role to help, but how do we help? Sometimes, it’s by fixing, helping and advising.  And sometimes it’s by listening and empowering the team member to fix it themselves.  As leaders, we are often scared by negativity and we jump in quickly with advice and fixes. I suggest you listen deeply to your direct reports. When they bring up something negative, stay with it and help them to explore it.   The pull to fix is great, so this is much more difficult than it sounds. Arranging to meet to discuss the issue will give you the time to pull together some great questions that will help your team member think through the issue and come up with solutions. Of course, you can suggest solutions too – but people are much more likely to listen to your suggestions when you have helped them to think things through first. Julia Rowan is Principal Consultant at Performance Matters Ltd, a leadership and team development consultancy. To send a question to Julia, email julia@performancematters.ie If you read one thing... Getting to yes – negotiating an agreement without giving in by Roger Fisher and William Ury. We often go into negotiations with an  ‘either/or’ attitude. Either they win or I do. Getting to Yes offers a framework for ‘principled negotiation’ helping us to come up with creative options where both parties (or more) can achieve what they want. 

Feb 09, 2024
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Giving back for the greater good

Chartered Accountants have a unique set of skills that can help guide and support the valuable work of Ireland’s charities and not-for-profits Orla Roche, FCA, TMITI, has been volunteering in the not-for-profit sector since childhood and began to carve out a career in charity after qualifying as a Chartered Accountant with KPMG in Dublin and returning to live in her native Galway in 2002. “I volunteered for charities from a young age and became involved in the sector because I find the objectives of charities very interesting; they make a difference,” explains Roche, who is currently co-Chair of the Institute’s Charity and Not-for-Profit Special Interest Group.  After returning to Galway, Roche also qualified as a tax technician with the Institute of Taxation and established Roche Chartered Accountants, her own business, offering tax and business consultancy services. “I’ve worked in both the corporate and not-for-profit sector for the likes of Galway Simon Community, Pobal, Connacht Rugby, St Vincent de Paul, GAA, Trócaire and Goal in Sudan,” she says. “Because profit is not the objective of a charity, my roles have been more varied and rewarding; it is not just about ‘doing the numbers’.” Roche is currently Finance and Governance Manager with First Fortnight, a mental health charity, which recently hosted its annual arts festival at locations nationwide in January. “First Fortnight challenges mental health stigma through arts and cultural action. We offer creative art therapy to children, adolescents and adults who are homeless or at risk of homelessness and we’ll be expanding this service to new locations around the country this year,” Roche explains. First Fortnight is one of more than 11,500 charities registered in Ireland ranging from small, local and volunteer-only to large, national or international organisations with thousands of employees, according to the Charities Regulator. Although all charities are classed as not-for-profit organisations, not all not-for-profit organisations are charities. Under the Charities Act 2009, a charity must be set up to promote one or more charitable purposes, promote only that charitable purpose and deliver a public benefit. “Ireland’s strong charity sector plays a central role in our society. The diversity of the sector’s activities is reflected in the Register of Charities, which includes over 3,600 schools as well as libraries, museums, youth clubs, daycare centres and much more,” explains Helen Martin, Chief Executive of The Charities Regulator. Aside from their societal impact, charities have a significant financial impact on the Irish economy. About 281,250 people are employed by registered charities, according to the Report on the Social and Economic Impact of Registered Charities in Ireland published last year by the regulator. “That’s equivalent to almost one-in-eight workers. Total direct expenditure by Irish charities was estimated in our report at €18.6 billion in 2022, an increase of 28 percent over 2018. The overall financial impact of the charity sector was estimated at €32.1 billion in 2021, when the indirect and induced effects of activity are also included,” Martin says.   Personal motivation  Tony Ward, FCA, has worked in both voluntary and professional roles within Ireland’s charity and not-for-profit sector, prompted initially by his personal experience. “My introduction to the sector came through my diagnosis with a degenerative eye condition in the early nineties, which led me to become involved with Fighting Blindness as a board member while working in practice, consultancy and the private sector,” he says. “I would go on to become an employee of Fighting Blindness and then Director of Finance with The Wheel – Ireland’s national association of community and voluntary organisations, charities and social enterprises – until May 2022 when I went into consultancy, largely in the charity sector.” Ward is currently co-Chair of the Institute’s Charity and Not-for-Profit Special Interest Group and sits on the board of several charities and not-for-profit organisations. He has firsthand experience of the benefits they can bring to individuals who need supports and services. “I have benefited personally from continuing to be involved with charities working in the area of blindness and sight loss while learning about many others and the great work they do. They often fill gaps left by the State in the provision of essential services or enhancing aspects of society that are important to all, such as arts and sports,” he says. “I think it is very important that we give back and what easier way to do it than in an area where we all have existing competencies, which probably fit with the skills charities desperately need?” Chartered Accountants, in particular, have skills of great potential value to charities and not-for-profits, Ward believes.  “I would urge Chartered Accountants to give back by helping the charity and not-for-profit sector. Many are already involved and, the more I’ve become involved myself, the more I understood how complex and important the ‘business’ of running a charity is.  “Charities are all subject to the same or similar governance controls, business metrics and operational concerns as other organisations. It is very important that they have people with suitable skills involved,” he says. Valuable professional skills Orla Roche agrees that Chartered Accountants have a lot to offer Ireland’s charity and not-for-profit sector. Even if they don’t work full-time in the sector, they can bring valuable professional skills to the table on a voluntary basis. “I feel my qualification has brought a much-needed function to the charities I have worked with. Governance and accountability are vitally important to charities,” Roche says.  “Since the establishment of the Charities Regulator in Ireland and the impending Charity Amendment Bill, charities have to be more transparent and I welcome these changes.”  For those Chartered Accountants who may be interested in volunteering, Roche says that there are safeguards in place to protect them from potential risks. “Pitfalls might exist in very small charities with very few or no staff and few financial controls where the onus might lie with the directors,” she says, advising that these risks can be mitigated by:   • Using the Charities Statement of Recommended Practice (SORP); • Keeping up to date records; • Working closely with an auditor; and  • Complying with the relevant Companies Registration Office and Charities Regulator rules.   “The way I see it, Chartered Accountants have a vital role to play by joining the boards of charities in a voluntary capacity,” Roche says. “Our analytical, financial and people skills can increase the transparency and accountability of the sector and you will find many Chartered Accountants sitting on the finance sub-committee of charity boards around the country. “They can also help in producing accounts and ensuring financial controls and best practice are adhered to. This increases the transparency and accountability of the charities they volunteer with.” For those interested in volunteering their skills for the first time, Tony Ward advises reaching out to their family, friends and local community or logging on to Boardmatch.ie, an Irish charity specialising in not-for-profit board recruitment, or Volunteer Ireland at volunteer.ie. “There can be a lot of work involved, less so perhaps in organisations that have their own dedicated staff, but in my experience, a Chartered Accountant who understands how systems work can fairly easily slot into a charity board or committee,” he says. Áine Crotty, ACA, first became involved in charity and not-for-profit volunteering while completing her training contract with KPMG in Dublin. “I trained in financial services audit and then moved into risk consulting and then the insurance industry, but it was initially through my involvement in some of KPMG’s fantastic Corporate Social Responsibility (CSR) initiatives that I realised the benefits and rewards that could come from using my skillset to help charities as a Charity Trustee,” Crotty explains. Role of trustees The Charities Regulator defines Charity Trustees as the volunteers that sit on the boards of charities (or committees in the case of associations).  “They are the people who ultimately exercise control over, and are legally responsible for, a charity,” Helen Martin explains.  Her advice to existing trustees and Chartered Accountants who may be thinking of becoming a trustee is to familiarise themselves with the responsibilities of the role. “I would advise them to check the charity’s entry on the Register of Charities to ensure that it has filed its annual report with the regulator and that key details, such as the names of the charity’s trustees, are up to date,” says Martin. Through Boardmatch.ie, Áine Crotty secured her first role with a charity on the Audit and Risk Committee of the Board of Paralympics Ireland. She now also sits on the board of Gerri’s Place. “Gerri’s Place is a not-for-profit, social enterprise that provides wellbeing breaks for people who need time and space to focus on their emotional and mental wellbeing,” she says. “I have volunteered with and supported various mental health charities from a young age, as I had seen the effects of poor access to mental health services in my community. Joining the Board of Gerri’s Place has allowed me to continue contributing to a cause that is close to me. The skillset of a Chartered Accountant is invaluable to organisations like Gerri’s Place, Crotty says. “I see my Chartered Accountancy qualification and the skillset that comes with it as a privilege; it’s an even bigger privilege to be able to use that skillset to give back to those in need.”  For other Chartered Accountants keen to explore trustee roles in Ireland’s charity and not-for-profit sector, Crotty has this advice: “If you are confident in your skills and ready to give back some of your time, there is a place for you. With the charity sector becoming more and more regulated, there is a real need for professionals such as Chartered Accountants to get involved.” Regulatory environment Like all legal entities, not-for-profit organisations are subject to general laws and regulations dependent on a number of factors, explains Níall Fitzgerald, Head of Ethics and Governance at Chartered Accountants Ireland, a board member of Age Action Ireland and co-founder of non-profit Chapter Zero Ireland. These include:   • How they are established (e.g. Companies Acts applying to companies); • Their purpose or cause (e.g. Charities Act applying to charities); • Their responsibilities (e.g. safeguarding legislation if caring for vulnerable people); • Their activities (e.g. licencing or permit conditions for fundraising or events); • Their governance structure (e.g. constitution, trust deed, etc.); and  • How they operate (e.g. employment legislation/health and safety legislation).    “In addition, the non-profit organisation may be subject to regulations or conditions because of where they source funding from,” Fitzgerald says. A sporting organisation receiving funding from Sports Ireland, for example, will be required to comply with the Governance Code for Sport. A charity receiving government funding, meanwhile, may be required to comply, in full or in part, with governance requirements for state organisations. “The financial reporting requirements for not-for-profit organisations also vary according to considerations similar to those outlined above,” Fitzgerald says. In Northern Ireland, requirements are defined for charities as a category of non-profit organisations by the Charities (Accounts and Reports) Regulations 2015. Under these regulations, the Charities Statement of Recommended Practice (FRS 102) (Charities SORP FRS 102) applies to charities with income exceeding £250,000.  In the Republic of Ireland, the Charities Governance Code requires charities to produce full unabridged financial accounts, and to make sure these are made publicly available. The Charities (Amendment) Bill 2023, meanwhile, provides for a number of amendments to the Charities Act 2009. The bill, currently under scrutiny in the Dáil, aims to provide greater transparency for the public in relation to the finances and operations of registered charities.  “The amendments proposed will facilitate the introduction – for the first time – of much-needed financial accounting regulations for registered charities in Ireland,” Helen Martin explains. “This will introduce greater transparency in the way charities report on their finances and ensure that all charities are treated equally regardless of whether they operate as a company or an unincorporated entity such as an association or charitable trust.” This in turn will ensure that the financial statements of charities are more informative and more comparable than is currently the case.  Níall Fitzgerald recommends that not-for-profit organisations undertake a regulatory mapping exercise to determine the extent of the legislation and regulation each is subject to. “This can be a useful process for a not-for-profit organisation of any size, enabling it to better design a fit-for-purpose governance structure that facilitates effective compliance and reporting, while the organisation mainly focuses on achieving its purpose and objectives,” Fitzgerald says. Crucial role of accountants Public trust and confidence is the bedrock of a charity’s existence and this applies whether it is a large organisation or one of Ireland’s smaller charities, writes Helen Martin.  Close to 50 percent of charities, excluding schools, have an annual income of less than €100,000.  Accountants can help support and enhance governance standards within charities. We know from our engagement with charities that many use accountants on a voluntary or professional basis to provide support on a wide range of financial matters, such as:   • Developing internal financial controls; • Preparing financial reports, including management accounts; and • Advising on and assisting with transactions and investments.    Promoting and supporting the principals of good governance helps ensure Ireland has a vibrant charity sector that is valued for the public benefit it provides across many facets of society.  This ranges from ensuring a robust risk management system is in place to making certain a charity’s details on the Register of Charities are correct and it is up to date with its filings. Another key area in which accountants can play a role is in supporting transparency and accountability. We know from research that there is a strong link between greater transparency and accountability and public trust. Accountants are accustomed to the requirement to comply with regulations and professional standards. Whether working on a professional or voluntary basis, as a charity trustee or a service provider, they can help charities by being familiar with their key regulatory obligations and making sure they are in a position to comply.  For example, it is essential to know when the charity’s annual report is due to be filed with the Charities Regulator and what your obligations are, as a charity trustee, if you receive a statutory direction to provide information under the Charities Act 2009.  Failure to file an annual report on time or respond to a statutory direction is a criminal offence and could also put a charity at risk of being removed from the Register of Charities. Getting started: three-step checklist for new trustees Níall Fitzgerald, Head of Ethics and Governance at Chartered Accountants Ireland, outlines three steps he recommends members take before agreeing to volunteer for a charity or not-for-profit. 1. Reflect on your personal motivation and the cause or purpose that matters most to you This passion will be a key source of the energy required for any commitment you make, but it will also be an important filter when choosing which not-for-profit organisation to get involved with. For some members, the motivation will be clear from the outset. For others, you will know it when you see it—perhaps when you hear about the impact a certain charity is having or as you come across examples of its work. 2. Think about the skills, experience and level of commitment you can bring to a not-for-profit This can be about much more than your financial or compliance acumen as a professional accountant, also taking into account any of the skills and abilities attained in your life and career. It is also useful to have an idea of the amount of time you can give to an organisation as this may be one of the key factors determining the extent to which you get involved. 3. Invest time and effort in identifying the right opportunity Whether you are searching for a voluntary position or approached about a vacancy, it is recommended that you carry out some form of due diligence on the organisation. This includes getting a clear understanding of its vision, mission and values, and how these fit with your own. One tip here is to consider the ‘SPF factor’ – Strategy, People and Finance – and ask these three questions: • What is the organisation’s strategy and what resources/capacity does it have to achieve this? • What is the profile and skillset of the people leading and running the organisation? • What is the state of the organisation’s financial position and performance?  In addition, consider the organisation’s expectations of you and your ability to deliver on them. Many of these matters are considered further in the Chartered Accountants Ireland Concise Guide for Ethics and Governance in the Charity and Not-for-profit Sector, available in the Ethics Resource Centre online at charteredaccountants.ie. Produced in 2018, the guide will be revised later this year to reflect more recent developments in the sector.

Feb 09, 2024
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Will the ‘10x Economy’ work for Northern Ireland?

The Department for the Economy unveiled an ambitious plan to boost the Northern Ireland economy in 2021, but will it be up to scratch? Professor Anne Marie Ward, Dr Esmond Birnie and Dr Stuart Henderson crunch the numbers to find out if the 10x Economy vision can deliver. Some argue that the Northern Ireland (NI) economy has strong potential given its apparent unique trade position as a halfway house between Europe and Britain, combined with the Department for the Economy’s (DfE) ‘10x Economy’ policy, which targets innovation, inclusion and sustainability. Yet, despite experiencing 25 years of peace, NI continues to suffer from political uncertainty and lower economic productivity relative to Britain and the Republic of Ireland (ROI). Moreover, ongoing uncertainties associated with Brexit continue to dampen potential foreign direct investment, which has been vital to the strong economy in ROI. It is against this backdrop that the DfE introduced a new growth policy in May 2021 aimed at achieving a 10-times better economy (‘10x economy’) by 2030.  The 10x vision is underpinned by objectives grouped into three pillars—innovation, inclusive growth and sustainability—and focuses on six priority sectors:  1. Agricultural technology (agritech); 2. Life and health sciences; 3. Advanced manufacturing and engineering; 4. Financial services and financial technology (fintech); 5. Software (including cybersecurity); and 6. Screen and low carbon.   The data The Northern Ireland Economic Trade Statistics (NIETS) is a new dataset that provides details on trade between NI and Britain for the first time. We have analysed this dataset, which covers the period 2014–2020 and comprises a sample of enterprises that are VAT or PAYE registered and trade in NI.  Approximately 5,000 to 7,000 enterprises respond to the survey annually. As part of our research, we examined the 10x priority sectors over the period 2014–2020.  Data on financial services and fintech are not included in the dataset and due to GDPR issues, we had to merge some of the 10x priority areas, ending up with four 10x sectors:  • Agritech;  • Health and life sciences; • Advanced manufacturing (including low carbon); and  • Software and screen.  Approximately 11.4 percent of the total sample is classified as being 10x. Here is a summary of our findings. Growth in sales and gross value added (GVA) As shown in Table 1, the 10x sectors of the NI economy were relatively resilient from 2014–2020 as total Gross Value Added (GVA) increased over the period, though agritech was negatively impacted by COVID-19.  Performance of the non-10x sectors improved over the period 2014–2019, as evidenced by increased total GVA (except traditional manufacturing, which declined by 20.35%). Most non-10x sectors were adversely impacted by COVID-19, however, except manufacturing and ‘other’ production.  Productivity Productivity is measured by the ratio sales per employment and GVA per employment. As illustrated in Figure 1, for 2014–2020, the wholesale and retail sector had the highest sales per employment, followed by agritech and other production. Other production has the highest GVA per employment, followed by construction, health and life sciences and software and screen. Agritech has the second lowest GVA per employment. External sales behaviour A country’s wealth is influenced by its ability to attract funds from external markets. To determine how NI is doing, we investigated the trade behaviour of NI enterprises using four ratios, which reflect the percentage of overall sales each business undertakes with Britain, ROI, the rest of the European Union (REU) and the rest of the World (ROW). The average percentage for each year (2014–2020) for the whole sample is provided in Table 2.  The most important external market is Britain, accounting for on average 11.75 percent of sales, followed by ROI (6.18%), ROW (2.69%) and REU (1.74%). Generally, the percentage of total sales to these external markets increased steadily over the period 2014–2019 and declined in 2020, coinciding with COVID-19. Patterns in the percentage of total sales to the four markets are further analysed by sector over the period 2014–2020 in Figures 2 to 5. Sectoral differences are evident. Generally, non-10x enterprises (the six to the left-hand side of each figure) are less engaged with external markets relative to 10x enterprises (the four to the right-hand side of each figure).   Differences in the relative importance of markets is also observed across sectors. For example, the ROI market is most important to the agritech sector (Figure 3), and the ROW market is most important to the health and life sciences sector (Figure 5), probably indicative of sales to the US. This sector is also very active in markets in the REU (Figure 4).  Note: When interpreting these results, be aware that the data is based on the largest enterprises in NI and the authors had to design their own 10x categories based on Standard Industrial Classification codes.   Will it work? The number of enterprises in NI that can be classed as ‘10x’ increased over the period from 619 in 2014 to 723 in 2020. They are contributing GVA to the economy and, importantly, most of their turnover is to external markets, which is beneficial for a small regional economy where local demand is limited.  These enterprises seem to be resilient, with little change in behaviour observed in the period after Brexit, and, with the exception of agritech, they continued to grow despite COVID-19 (though the data was only available for 2020).  In theory, the DfE’s ambitions are laudable. Cluster approaches have proven successful in other countries, including ROI, where foreign-owned high-tech enterprises pay higher wages, invest in R&D for future growth and have high exports.  Moreover, the vision of sustainable growth and prosperity for all (levelling up) aligns with more holistic concepts of economic growth that account for social and environmental concerns alongside economic prosperity.  There are concerns, however. This is an ambitious undertaking that will take time to implement. The 2030 target set by the DfE is tight, the support structures to fuel 10x growth are not yet fully established, ‘10x’ is not yet fully defined, ‘place’ is not yet fully defined and hence the data are not (yet) available to enable 10x to be identified and analysed by place.  This will hinder the ability to foster clusters and build networks, which are important for innovation. Also, change will be difficult due to existing established structures.  For example, most policy and government action is managed through Local Government Department (LGD) level structures. However, clusters of enterprises may cross LGD boundaries, complicating a joined-up approach.  In addition, economic and social development is not only managed by the DfE; many other bodies such as central government and local government departments, business networks and educational establishments, are involved. Role for accountants Accountants can play an important role in the success of the DfE’s policy and the future of the NI economy. Accountancy firms are present in most towns across the region. Accountants are part of local business networks and have first-hand knowledge of entrepreneurship and innovation within communities.  Moreover, accountants are well-equipped to facilitate the creation of priority clusters and expanding networks that enable local businesses to connect and grow both within and beyond their communities. This will be good for communities and for the accountancy profession.   *Note: The tables and diagrams in this article are from the authors’ full report, available on the Northern Ireland Statistics and Research Agency website. Professor Anne Marie Ward, FCA, is Professor of Accounting at Ulster University; Dr Esmond Birnie is Senior Economist at Ulster University; and Dr Stuart Henderson is a Lecturer in Financial Services at Ulster University.

Feb 09, 2024
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Getting IPO-ready in 2024

A successful flotation is a major milestone for any ambitious company but the path to IPO-readiness is paved with challenges and careful preparation is crucial, write Ciara O’Callaghan Crehan and Eimear McDermott The public markets are a bellwether for economic confidence at any point in time and we have witnessed a challenging period for equity performance and new issuances recently.  While the public markets offer just one source of potential funding for a business, an Initial Public Offering (IPO) is seen by many as a particularly significant milestone for promising businesses and IPO activity as an indicator of wider economic health.  There are numerous reasons why companies may want to list on a stock exchange. These include access to a new pool of capital to help take them to the next level, enhanced profile and prestige, a clearly defined business valuation and a route to exit for founders and shareholders. Raising capital through the public markets takes time and lots of preparation, however, particularly in a period of prolonged economic uncertainty.  Current IPO market conditions The current IPO drought has persisted for more than 18 months, but this doesn’t mean pre-IPO companies should be inactive. Rather, we would suggest taking advantage of the current lull to prepare now for a public offering further down the line. Already, we are starting to see the first green shoots of recovery. The third quarter of 2023 produced 36 IPOs that raised a combined total of about $8 billion. This was the same amount of proceeds raised for the full year in 2022 and was led by the largest tech offering in years, ARM, which raised approximately $4.9 billion. In particular, we are seeing a growing number of large corporates opting to consolidate their market listings on – or undertake a general move to – US markets. While this is not good news for stock exchanges in Ireland or Europe, it demonstrates the continued dominance of the US capital markets for access to funding.  The next wave of IPOs will be led by those companies that do the hard work of preparation today, readying themselves for amplified scrutiny and accountability and working to make the necessary corrections big and small. Choosing the right stock exchange Many factors play into the decision on where to list a company, including: Access to capital, which is critical – in many cases companies will decide to list on multiple exchanges to broaden their investor base; Market visibility and the reputation of the exchange, which may be known for a particular focus area; Liquidity and trading volumes; Regulatory requirements, which differ significantly across markets – the US capital markets are the most onerous from a compliance perspective but are more attractive to many stakeholders, from suppliers to employees and particularly to investors; and Expansion into new markets and peer group comparison. What it takes for a successful IPO  Any successful IPO needs a compelling equity story. In the current environment, IPO candidates need to be able to demonstrate a resilient trading performance and compelling strategy for future growth to tempt investors.  It is also important that the valuation expectation is reasonable. With a particular focus on the US market, some of the key steps in a successful IPO journey include: Ensuring you have a first-class management team and advisors; Getting your IT systems and control environment in order; Improving your financial reporting and getting audit-ready; Addressing change through a people-centric transformation programme; and Addressing environmental, social and governance-related performance and strategy upfront. It’s a team game The path to becoming a public company depends on a coordinated team effort by management and external advisors. In our experience, which spans both sides, we believe there are several critical ingredients to success: An experienced management team, ideally with some IPO experience that can build a strong equity story during the roadshow; External advisors with IPO credentials, contacts and industry experience; and A structured transformation of the people, processes (with a particular focus on technology) and culture of the company. IT capacity and controls Companies should not overlook or underestimate the ‘heavy lift’ needed for readying their IT systems ahead of a planned IPO. Some of the IT systems and tools commonly used by private companies in many cases cannot scale to meet the technology requirements of a public company.  Many companies face fundamental challenges in understanding their existing IT landscape and the interdependencies that exist between the different elements therein.  This is particularly important because you cannot expect to achieve a robust internal control framework for financial reporting without a strong partnership between the IT and finance teams.  It takes a coordinated approach – with informed, experienced leadership – to break down silos and ensure that everyone is speaking the same language. Getting the governance right at the outset is a prerequisite for successfully establishing and embedding your control framework. Companies that have not historically invested in technology and tools for financial reporting and business operations might struggle with the limitations of their existing technology if this is not addressed as a priority at the outset.  Assessing IT across people, processes and systems is critical. Taking a risk-based approach – and strategically sequencing your transformation initiatives – is equally important.  Early in the preparation phase is the time to get the fundamentals right, and to ensure that each step of your transformation is aligned to your IPO target state.  Companies should be incorporating audit and control requirements into their procurement decisions when looking at investment, alongside business, information security and other assessment criteria.  Financial reporting and audit The level of auditor scrutiny on public companies is high and ever-increasing. Therefore, getting your company’s historical accounting and controls in order is essential pre-IPO.  As already mentioned, it is critical to have the right technology in place here alongside the right people – and to give them sufficient lead time to do the work needed. In preparing for the rigours of an IPO, an auditor may have to re-audit parts of prior years’ accounts and update procedures to meet the higher standards expected of a public company. They will likely have to update controls and processes and document all key controls.  It is an arduous process and one that cannot be rushed. Early engagement with the audit team is important.  In our experience, bringing your auditor into the fold at agreed milestones can be hugely valuable in ensuring continuous alignment and avoiding any unexpected curveballs as you navigate the IPO journey. Tailored people-centric approach An IPO journey will have its challenges. It requires major transformation involving upgrading technology, improving financial reporting processes and implementing governance, risk and compliance capability. All are critical.  So too is a people strategy that sets out the vision for a collaborative and supportive post-IPO culture incorporating diversity, equity and inclusion as well as helping to guide how the business plans to achieve its environmental, social and governance (ESG) goals.  And finally, ESG As ESG continues to gain momentum, it is becoming a fundamental consideration for companies making strategic decisions in areas including funding.  Integrating ESG reporting into the equity story has become key for investors and, consequently, it is an increasingly important aspect of the IPO readiness plan for issuers.  This is especially true in Europe where regulatory requirements for listed companies will become mandatory as the European Union’s Corporate Sustainability Reporting Directive (CSRD) comes into effect. An ESG strategy is now a must-have for any company considering an IPO.  Becoming a public company and raising funding on the capital markets has always required lots of work and preparation.  Alongside a company’s equity story, financials and governance, there is now a broader focus on technology, culture and people strategy as well as ESG commitments and performance. The current market lull could provide just the ‘pause’ some companies need to prepare thoroughly for a successful flotation and future growth.  Ciara O’Callaghan Crehan and Eimear McDermott are co-founders and directors of Odyssey Consultants, a boutique risk and management consultancy for helping companies at all stage of their journey reach new horizons

Dec 06, 2023
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“Philanthropy provides the risk capital for projects and initiatives that benefit society”

The publication of the National Philanthropy Policy will mark an important milestone in the evolution of this type of proactive giving in Irish society With a new National Philanthropy Policy due to be published later this month, the Department of Rural and Community Development will set out plans to create an ‘enabling environment’ for philanthropy in Ireland. For Philanthropy Ireland (PI), the representative body for the sector here, the policy’s publication marks a very important milestone in the evolution and perception of this type of proactive giving in Irish society on the cusp of the New Year. PI defines philanthropy as the act of giving money, goods, time or effort to support a charitable cause, usually over an extended period of time and in regard to a defined objective. “Irish philanthropy comes in different shapes and sizes, from small community grants to men’s sheds and new mothers’ groups to larger advocacy projects with a national remit,” explains Eilis Murray, Chief Executive of Philanthropy Ireland. “No matter what it looks like, philanthropy has touched every corner of Ireland, but it is still a relatively new concept here because our wealth is relatively new.  “Irish people are generous and support many social causes, but compared to the UK and Europe, philanthropy here is underdeveloped. Greater support from the State and public awareness can change that. “For context, there are about 8,000 grant-making organisations in the UK whereas, in Ireland, there are only around 100.” For Philanthropy Ireland, which has been working with Minister Joe O’Brien and the Department of Rural and Community Development to create the new National Policy on Philanthropy, its publication will be a welcome development. “We hope it will encourage more people with wealth to give and, equally, encourage those advising them to consider the potential of philanthropic giving or leaving a legacy,” says Murray.  For Liam Lynch, Tax Partner with KPMG and past President of Chartered Accountants Ireland, one of the biggest benefits of philanthropy is its potential to bring about positive change with real and lasting social impact. “Philanthropy provides the critical risk capital for projects and initiatives that benefit society and improve opportunities and outcomes for those who are disadvantaged in various ways,” Lynch says. “Some people are of the view that philanthropy shouldn’t exist and, instead, the State should administer all the money needed to fund good causes through the tax system. I don’t agree.  “There is a point of view and perspective philanthropy brings to the table that promotes innovation in a way the State and local government are just not set up to do. “There are services the State should be providing as standard to support social good. Philanthropy is about building on this in a strategic, outcome-driven way that can have a very positive impact on society.” For those who decide to become involved in philanthropic giving, it is often a deeply personal endeavour and one that reflects their personal convictions and values, according to PI. “Philanthropy can make a difference in so many areas, from tackling educational disadvantage and supporting employment opportunities, to health-focused initiatives – mental health, children’s or older people’s health, for example,” says Lynch. “Philanthropic giving can go towards promoting sustainability and the environment or protecting Irish culture and the arts. This is just the tip of the iceberg. The potential is enormous.  “That is why I would like to see more awareness and discussion of philanthropy, and philanthropists, in Ireland. I think we are generally very aware of the role of philanthropy internationally.  “My question is, why don’t we celebrate our own philanthropists as much and make a concerted effort to recognise the goodwill they are putting into doing good in society?” Frank Gannon – Lynch’s colleague at KPMG Ireland and a Partner in the firm’s Financial Services Group – sees similar benefits in philanthropic giving.  “For me, philanthropy means fulfilling the wish to give something meaningful to those who will benefit,” he explains. “Many people associate philanthropy with monetary donations, but there is much more to it than that.” Chartered Accountants Ireland’s members and trainees are well-placed to get involved in different types of philanthropic giving, Gannon says.  “Our members and trainees have all been educated to a certain level. Sharing our knowledge, information and know-how with those who have not had the same opportunities – and, in particular, those in socially deprived areas – can be a powerful tool,” he says.   “Social capital matters and a lot of Chartered Accountants have large networks of contacts. These networks can be leveraged to transform lives. Giving someone from a deprived area the opportunity to interview for a job could change the trajectory of their life with the positive knock-on effect extending to their family and wider community.”  For those whose philanthropic interest lies in monetary giving, meanwhile, Philanthropy Ireland offers a wealth of advice and information on what you need to know to get started. “There are many forms of monetary philanthropy, which is often considered within the overall context of wealth management and estate planning,” it advises. “Individuals, families and corporates often set up their own foundation or they link in with an intermediary philanthropic organisation that can support them in their grant-making decisions and provide governance and compliance support.” To find out more about Philanthropy Ireland, the organisations and initiatives it supports and the different philanthropic options on offer, log on to philanthropy.ie

Dec 06, 2023
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SMEs: the key to gauging the gender pay gap

Ireland’s true gender pay gap will only emerge when SMEs begin reporting and now is the time for this crucial business cohort to start preparing, writes Padraic Hayes Dr BJ Fogg, a renowned behaviour scientist at Stanford University, postulates in his book Tiny Habits that small but frequent incremental changes are often the safest and most effective approach to delivering extraordinary results. One hopes this hypothesis will ring true for the SME sector when it comes to preparing for gender pay gap reporting.  The first gender pay gap reporting obligation came into force in 2022 for companies with over 250 employees.  This will extend to SMEs with over 150 employees next year and even further in 2025 when companies with over 50 employees will also be obligated to commence reporting their first gender pay gap. These milestones are very significant when you consider that, according to the most recent Central Statistics Office figures, SMEs with fewer than 250 employees make up 99.8 percent of active enterprises in Ireland and employ 68.4 percent of the workforce. Gender pay gap reporting thus far has only covered the other one percent of Irish enterprises. We can therefore infer that we have yet to see Ireland’s true gender pay gap figure.  As a result, SMEs are going to be in the full glare of both industry and the media once their first reports are published in 2024. This could be Ireland’s de-facto ‘silver bullet’ solution to truly move the needle on the gender pay gap.  What is the gender pay gap? There continues to be a lot of confusion surrounding what exactly the gender pay gap is. It is defined as the difference between the average hourly wage of men and women in the workplace.  The gender pay gap is an assessment of the gender representation of men and women at each level of an organisation characterised by the overall difference in their pay.  For example, how many males and females are in the top quartile of an organisation’s earners versus the lowest quartile – i.e. how well-represented are females by comparison to males?  It is important that the gender pay gap is not confused with “equal pay for equal work”, which is already a legal obligation for employers in Ireland.  The gender pay gap can be caused by a variety of factors such as unconscious bias, company policies or the division of caring responsibilities in the home. According to the United Nations, women worldwide earn 77 cents for every dollar earned by men.  This suggests that over their lifetime, women’s earning potential is significantly less, a staggering realisation in the modern age.  In Ireland, the gap stands at 11.3 percent, which is slightly more favourable than the EU average of 13 percent (Eurostat). This still equates to about one month a year when a woman essentially works for free. It is important to point out also that this is not just a ‘female’ issue, but an economic issue that affects us all. The reduced earning potential for females affects the overall household income.  It is common for women to find it more cost-effective to stay at home to offset childcare costs, for example, and this places downward pressure on household income in an escalating cost-of-living crisis, and thus the cycle repeats.  For this reason alone, we should all feel motivated to proactively figure out the root cause of this socio-economic issue and break the chain once and for all.  Who needs to report and when? Currently, the obligation to report remains solely on organisations with over 250 employees. The first gender pay gap reports were published in December 2022 and the second are due in December 2023. Next year, however, the obligation will extend to all employers with more than 150 employees. The employers will pick a ‘snapshot’ date in June 2024 and report their gender pay gap metrics for the previous 12 months.  Crucially, the employer will also be required to provide the underlying reason why the gender pay gap exists and, more importantly, what actions they are planning to take to rectify it.  Furthermore, they will need to publicly publish their report either on their website or on the government portal planned for introduction later this year.  As SMEs look ahead to this new landmark reporting requirement, they will be taking the steps needed to ensure they meet these first-time obligations. Here is my advice on the steps you should take and the pitfalls you will need to avoid. Challenges for SMEs  Data collection from disparate systems The gender pay gap report will require inputs from a range of data sources. It is rare for any organisation, no matter what size, to be in a position to extract the data they need from a single source. Finance, payroll and HR systems are disparate in nature and contain data of differing quality. This challenge is amplified where spreadsheets persist in place of systems as the book of record. It can be time-consuming and challenging for non-technical users to extract, organise combine and compare this data and significant effort may be required to cleanse existing datasets in preparation for reporting.  Resourcing The amount of time and effort required to complete the gender pay gap report will be significant – it should not be underestimated. For SMEs, this could prove especially challenging because they are more likely to need to divert attention away from regular activities in situations where there is no dedicated reporting team. This may be especially challenging for the leadership team, who will be required to input into the report and sign it off. All of this increases the risk of introducing ‘bias’, akin to someone correcting their own homework so to speak, which you should avoid at all costs. Availability of expertise  Smaller organisations are highly unlikely to have access to the broad range of expertise needed to complete the gender pay gap report. To create a detailed report requires independent expert skills from a range of disciplines such as data analytics, visualisation and organisational change specialists.  Navigating legislative nuances The guidance in relation to how to report has evolved since the initial introduction of gender pay gap reporting. While many issues have been ironed out through the FAQs available on the government website (gov.ie), there are still nuances in the preparation of the report. My advice is to carefully study the available guidance to ensure you are compliant.  Comparing results While many organisations will be tempted to compare and contrast how they ‘measure up’ against their peers, it is worth bearing in mind that there is no right or wrong answer per se. The gender pay gap is a broad, multifaceted and pervasive issue that goes far beyond the numbers. Focus instead on assessing and improving the aspects of your own company practices, policies and culture that influence the gender pay gap – and your gender pay gap result will follow.  Best practice recommendations for SMEs Fail to prepare, prepare to fail It is important to be prepared for the questions you may get from your employees once your gender pay gap report is published. It is critical that you communicate the result of the report and ensure they fully understand what the data is saying and, more importantly, what it is not saying. It is very common for people to misunderstand the metrics contained in the gender pay gap report. As they say, good news travels fast, but bad news travels twice as fast – lead the narrative. Action planning In your final report, you need to provide a list of actions that you are going to follow to improve your gender pay gap in the 12 months ahead. Set goals for the next year in your report using the SMART (Specific, Measurable, Attainable, Relevant and Time-Bound) technique. It is worth noting again here the importance of focusing on your company practices, policies and culture – and take advantage of the opportunity for a yearly reset. Remember, “what gets measured gets done”.   Get help early on I cannot overstate this enough: get help early on. The requirements of your gender pay gap report may look straightforward at the outset, but do not be fooled.  Preparing such a report can be a time-consuming and intricate process requiring expertise in both data analytics and visualisation and organisational psychology, which together provide a complete assessment.  Moreover, significant input from departments and teams across the organisation will also be needed – typically human resources, finance and payroll, and senior management.  Final word Numerous organisations have come to us seeking help having realised just how complex preparing a gender pay gap report can be.  The best approach is to view it as an in-depth reporting process akin to an annual audit of your workforce analytics, practices, policies and culture.  Padraic Hayes is an Associate Director on Grant Thornton’s digital transformation advisory team and heads the firm’s gender pay gap service offering

Oct 06, 2023
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How are we faring in 2023?

As we approach the final months of 2023, three Chartered Accountants take a moment to contemplate the hurdles Ireland has surmounted and share their aspirations for the remainder of the year Sinéad Nolan Financial Accountant AXA Insurance The economy is fine on paper (GDP and domestically); however, housing is a major issue, in both affordability and availability. The cost-of-living crisis is only exacerbating a problem that was already there for young professionals starting off their careers. Paying rent is a continuous challenge, as is looking for an affordable house to purchase. The interest rates keep rising, and house prices don’t seem to be reducing. Many in the country felt the challenge of paying bills in the wintertime. On top of that, there has been a lot of uncertainty with the war in Ukraine.  On the plus side, there has recently been slight moderation in the price of energy and in inflation, and the pleasant weather in June was a bonus! (Less pleasant in July, admittedly.) Also, the unemployment rate in the Republic of Ireland fell to a record low of 3.8 percent in May. To help, my employer has hosted many financial wellness webinars, which, given the current economic crisis, have been great.  We also received a well-being day off, not to mention personal interaction is happening in the office again – we are attending social events, which is brilliant.  As for the rest of the year, I hope the housing crisis settles, and there is more support given to first-time house buyers from the Government. I joined the Young Professionals Committee in July after attending the wonderful Pride BBQ in June. I am looking forward to organising and hosting events, and connecting with other members of the Institute. The Young Professionals Committee is a great networking platform, so I am very excited to get stuck in with it. Jim Stafford Consultant Friel Stafford I work every day at the coalface, advising companies and individuals who are dealing with financial challenges, and thus I appreciate the issues facing the economy.  While there is an economic brew of uncertainty caused by inflation, geopolitical issues, etc., the biggest impact we have seen this year has been the dramatic increase in interest rates, which has shaken some people to the core.  We have observed a noticeable increase in Members Voluntary Liquidations from businesspeople who are deciding to ‘cash in their chips’ now rather than face future uncertainty.   One of the positives that I have always enjoyed when working with people under financial pressure is recognising the levels of resilience people have. On the ‘resilience spectrum’, I am delighted to see some clients who bounce back stronger than ever.   The highlight for me personally this year was the sale of Friel Stafford to Ifac, which will enable us to provide restructuring services such as the Small Company Administrative Rescue Process (SCARP) across Ifac’s 30+ offices.  The association with Ifac has moved us into the top ten accountancy firms in Ireland, which has opened the doors to certain types of work, making it easier for us to attract and retain talent.  A big development during the year was the growth of artificial intelligence (AI). While there is great potential for generative AI to change the workplace, there is also huge scope for more sophisticated fraud.  Looking to the year ahead, a big challenge for some businesses will be the ending of the Revenue warehousing scheme, which was a valuable lifeline for many.  We expect to see an increased number of SCARPs next year.  Another big challenge for some firms will be the Companies Registration Office and the Corporate Enforcement Authority increasing their enforcement activity on companies that are struck off. Gordon Naughton  Chief Executive Officer Tactive   January represented a strange and uncertain time for the Irish and global economy. Many initiatives were placed on hiatus due to significant inflationary, economic and geopolitical concerns.  In January, it was startling to see how quickly the mood had shifted from November and December. Since then, the business community and consumers have learned to live with these concerns and are in a positive state of mind.  Currently, the Irish economy is showing tremendous resilience, with the overall tax intake and consumer spending being unexpectedly high. It seems the country is forging ahead. However, if the past three years are a barometer for future challenges, predicted and day-to-day issues tend to be easy to deal with. It’s the unpredicted challenges that can pose the most difficulty.  My key lesson from this period is that businesses need to be agile, efficient and have contingency plans for the three main ways an economy can move – up, down or steady on.  Luckily, I have great clients, a good support structure and network that has brought me through any uncertainty. I am so lucky to work from home and spend time with my wonderful family.  Continuous learning is a facet of my life, as I simply like reading and expanding my knowledge. This year I obtained a black belt in Lean, which has helped me professionally and personally.  As for the rest of 2023, I hope to continue to work with outstanding clients.   

Aug 03, 2023
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Taking action: How SMEs can adapt to climate change

Recent European heatwaves have highlighted the impact climate change has on society and the economy. Susan Rossney explores the challenges facing Irish businesses when taking steps to tackle the crisis Recent severe heatwaves in continental Europe have shown how the effects of global warming are coming ever closer to home. Forced migration, drought, forest fires and biodiversity loss are some of the many ways climate change will impact Irish society.  Its impact on the economy will be acute, affecting everything from the health and wellness of employees to the cost of raw materials, scarcity of resources and supply chain disruption.  Ireland and climate change Climate change poses risks to humans, nature and Ireland as a nation.  Ireland is legally bound to meet ambitious national and international climate targets. According to the Climate Change Advisory Council (CCAC), an independent advisory body, Ireland will not meet the climate targets it has set for itself in the first and second carbon budget periods. The Environmental Protection Agency’s (EPA) provisional estimates on 2022 greenhouse gas emissions show that Ireland already used 47 percent of the carbon budget for 2021–2025 in the past two years.  An annual reduction of 12.4 percent is now required for each of the remaining years if Ireland is to stay within budget.  However, as emissions fell only 1.9 percent in 2022, this has been described as “extremely challenging” by the EPA.  It is clear that action is required across all sectors of the economy and society, including: Mitigation: reducing activity that causes climate change, like burning fossil fuels (coal, oil and gas); and Adaptation: making changes to deal with the effects of climate change, from operational changes to cope with rising summer temperatures or winter flooding to factoring in the risk of developing stranded assets and increased carbon tax liabilities. Ireland’s perception of climate change According to Climate Change in the Irish Mind, EPA research conducted in 2021, most Irish citizens share a desire for action on the climate crisis.  However, other EPA research has found that our emissions of greenhouse gases (GHGs) continue to rise.  Environmental Indicators Ireland 2022, published by the Central Statistics Office (CSO), shows that Ireland’s 2022 emissions were 11 percent higher than in 1990.  Enterprises contributed an estimated 12.7 percent to Ireland’s overall emissions in 2018, according to the Climate Action Plan 2023. Although this is less than the contributions of other sectors, there remains a need for Ireland’s enterprises to take action to reduce their emissions.  However, a 2022 national survey of 380 SMEs and larger enterprises across industry and service sectors by Microsoft and University College Cork found that Irish businesses are underprepared to make the necessary changes to transition to a net zero future. According to the study, 86 percent have no commitments or targets to decarbonise.  Barriers to action  In the face of evidence of climate change – and Ireland’s willingness to take action – what is preventing Irish businesses from responding to the crisis?  As an issue, climate change is complicated, abstract and overwhelming. Multiple interdependent factors cause it, and it is nearly impossible to avoid contributing to it in our daily lives. Buying products, driving a car or taking a flight for a foreign family holiday (full disclosure: I’m just back from one) all add to the overall problem. The solutions to the climate crisis are also interdependent and complicated. The positive changes we can make as individuals can feel insignificant, especially compared with large countries’ continued pollution.  The European Commission’s Annual Report on European SMEs 2021/22 – SMEs and environmental sustainability identified access to finance, limited expertise and skills, and regulatory and administrative barriers among the challenges facing SMEs in particular. Businesses that want to take climate action often have limited time, cash flow, resources and support (both financial and non-financial) to take action.  Knowledge is also a barrier. Many professionals qualified at a time when climate change was not identified as a business risk. They now find themselves having to skill up mid-career in an area that is famous for changing frequently.  Finally, many citizens and businesses are still struggling with crises related to COVID-19, inflationary pressure, supply chain disruption and high energy costs. Staying afloat is a crisis in itself.  Firms, particularly SMEs, focusing on the practicalities of running a business, paying staff and grappling with cash flow and costs are more likely to see climate action as the responsibility of governments or, at the very least, large corporations rather than them.  On top of that, climate discussions are often politicised. They are regularly reduced to a ‘them vs us’ polarised debate in mainstream media rather than discussing how everyone can work together to deliver solutions.  Threats and opportunities  For businesses, climate change presents both threats and opportunities.  Threats The threats have been categorised as physical risks (both ‘acute’ and ‘chronic’) and transitional risks.  Opportunities  Taking action on the climate crisis enables businesses to restore lost ecosystems, improve air quality, community health and well-being, and avail of the opportunity to make a lasting positive impact. There are additional advantages to consider: Reduced costs – the Sustainable Energy Authority of Ireland (SEAI) estimates that the average SME can save up to 30 percent on its energy bill by becoming more energy efficient (improved heating and lighting, lower maintenance of electric vehicles, efficient water and materials management and using recycled materials with a lower climate impact all contribute to lower costs);  Reduced reliance on exposure to fluctuating oil and gas prices from switching from fossil fuels (coal, oil and gas) to renewable energy sources; Reduced exposure to carbon tax, which is increasing €7.50 per tonne to €100 per tonne in 2030; Access to grants, allowances and tax reliefs; Improved access to capital and finance from investors and lending looking to ‘green’ their portfolios; and A competitive edge in attracting talent, clients and customers. Steps to climate action Businesses looking to take action on the climate crisis can take several steps: Build your knowledge. There are many resources out there, several provided by the Government and Chartered Accountants Ireland. Begin measuring emissions with tools like the Government’s Climate Toolkit for Business.  Consider an internal energy audit to find ways of reducing your carbon footprint. SEAI maintains a list of registered energy auditors and offers SMEs a €2,000 voucher towards the audit cost. Consider setting up an internal environment and climate impact team to devise a decarbonisation plan.  See also the Sustainability Glossary in the Sustainability Centre of the Chartered Accountants Ireland website.  For more, see www.charteredaccountants.ie/sustainability-centre/sustainability-home Susan Rossney is Sustainability Officer at Chartered Accountants Ireland Reporting and climate change The Corporate Sustainability Reporting Directive (CSRD) is an EU Directive requiring certain companies to disclose information on sustainability-related impacts. It proposes significant changes to how entities report on their business’s environmental, social and governance (ESG) impacts. These changes will affect many enterprises – directly and indirectly.  Businesses ‘in scope’ of the CSRD are required to consider their supply chain when reporting on sustainability matters. This will mean that companies not in scope that form part of a supply chain may be asked to provide climate-related information by companies in scope. Small companies should prepare for this and have a mechanism to measure and disclose their carbon emissions. For more on the CSRD, see the Chartered Accountants Ireland Technical Hub. Dee Moran is Professional Accountancy Lead at Chartered Accountants Ireland  

Aug 02, 2023
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Strength in numbers - Sustainability and the SME

Sustainability is often seen as the domain of large corporates but SMEs have the collective potential to be more powerful players. Sheila Killian explains why Social and environmental sustainability is often seen as more relevant to big multinational companies (MNCs) than to SMEs, small-to medium enterprises employing no more than 250 people. MNCs are more likely to have a sustainability strategy, and resources for its implementation, monitoring, reporting and communication.  They are more likely to report externally, integrating their reporting across sustainability and financial activities, and to be scored by ESG rating agencies.  This does not mean that MNCs carry all the responsibility or should reap all the benefits, however.  SMEs are enormously impactful in aggregate and have a huge amount to gain by getting involved. So, why and how should they engage? The potential impact of SMEs on sustainability SMEs have a massive collective impact. In Ireland, they account for seven jobs in 10. While large companies are commonly exporters, SMEs tend to serve their local region.  In terms of where people live, work, shop and spend their leisure time, smaller enterprises dominate. This amplifies both their responsibility, and the opportunities open to them. Because SMEs are embedded in their communities, they often make a huge contribution socially without realising it. This may lie less in strategy than in values.  David O’Mahony of O’Mahony’s Booksellers Ltd, a long-established independent bookshop in the south-west, sums up the position: “It’s only when you really think about it and put all the things together that you realise that there’s a lot more going on … [in corporate responsibility and sustainability] … than we would have probably realised ourselves.”  O’Mahony’s enjoys high social capital locally, gained through understated good work for the community and environment, derived from values and a sense of neighbourliness rather than from formal reporting.  Why SMEs do not report Despite this implicit moral accountability, many SME owners do not think about reporting externally on their sustainability. This is often because they don’t see the value to be gained. Compared with MNCs, there is much less separation between ownership and management/control in SMEs.  Therefore, the need for both internal and external reporting is reduced because the main shareholders are already intimate with what is going on in the business, and employees are closer to the leadership.  Unless the business is considering raising external finance, there is little need to consider how potential investors might perceive it, and if there is a perception that customers are not interested in sustainability activities, these will not be reported.  It seems to come naturally to SMEs to be community-oriented, however, often because they are family-owned, and such behaviour reflects the origins and values of the family.  Such firms tend not to have formal, written codes of conduct, but instead propagate the personal values of their owners, who do not consider that a separate, published set of values and reporting on their social and environmental activities is necessary for business. Why SMEs should report One reason for SMEs to begin some form of sustainability reporting is so that they can compete with MNCs locally to attract and retain talented employees.  The labour market is tight, remote working has shifted the power balance, and younger generations are more focused on sustainability.  Increasingly, SMEs are framing their sustainability credentials more clearly, and connecting them with their employer brand so that they can attract the talent they need.  There is also a consumer angle. The challenge posed by behemoth online retailers to small, local bricks-and-mortar businesses is now well-rehearsed.  A small, independent business, like a bookshop, needs to clarify and articulate its values and personal touch as a competitive advantage.  This ‘personality’ needs to be communicated externally if it is to reach the right customers effectively. Sustainability reporting can convey a sense of what the company is all about, its values and purpose – its ‘soul’. A third reason, particularly applicable to SMEs operating in the business-to-business sphere, is that reporting on strong sustainability metrics confers an advantage in entering the supply chains of larger firms.  If, for instance, an MNC is moving towards zero-carbon, it is likely to require smaller companies in its supply chain to be also on that journey.  A fourth reason to report is the internal value to be gained from paying attention to sustainability. Measuring, reporting and constructing a narrative around social and environmental values will improve the culture of the business, and pave the way to greater innovation.  Hotel Doolin in County Clare is an example of a small business that tells its sustainability story effectively. It has shortened its supply chain by buying local produce.  The hotel harvests rainwater, it has eliminated single-use plastics, and uses environmentally low-impact energy and heating. It became Ireland’s first carbon-neutral hotel in 2019, under the Green Hospitality Programme, ahead of many larger competitors.  The business also promotes social sustainability, employing refugees, supporting local community groups and actively seeks to be a good employer. This has enhanced its reputation not only locally but nationwide.  Partnering with not-for-profits Smaller companies that are ambitious in terms of sustainability targets will inevitably want to achieve things that are beyond their capacity.  If, for example, a business decides to work on the water quality in the area in which it operates, it may lack in-house expertise, jeopardising its credibility with the local community. One solution may be a partnership with a not-for-profit organisation (NFP). NFPs often have the expertise to tackle social and environmental issues but lack the resources, whereas companies may have resources (money) but lack the knowledge. A partnership can achieve sustainability goals if the match is right.  The NFP needs to be operating in the area in which the company wants to make progress, and the company needs to align with the NFP’s approach to society and the environment.  Mutual respect and consultation are key. At worst, a partnership can be seen as a ‘fig leaf’ for the SME and can undermine the legitimacy of the NFP. At best, it can be truly impactful for all involved. SMEs’ supply chain responsibilities  MNCs are famously held responsible for the working conditions in which their goods are produced by companies in their supply chains. Scandals, including the sweatshop labour exposed in the 1990s to the Rana Plaza garment factory collapse in Bangladesh in 2013, have forced companies such as Nike, Gap and Nestlé to change their practices.  Bad practices persist today, however, even where goods are produced close to home. In 2020, for example, it was revealed that online vendor BooHoo was selling clothes made in extremely poor working conditions in Leicester in the UK.  For a small, independent retailer, this means that, unless it takes steps to assure itself of the origin of the goods it sells, the risk remains that all or some element/s of those goods may have been produced in sweatshop conditions.  Smaller firms may lack resources to monitor conditions in their suppliers’ factories. Nor are they likely to have the requisite buying power to impose a code of conduct on their suppliers. So, what can they do about the conditions under which the goods they sell are produced? The International Labour Organization has clarified that a firm has responsibility as far up the supply chain as it has ‘reasonable influence’.  Large firms can leverage direct buying power to positively impact supplier. Starbucks works with its coffee producers to bring them up to higher social and environmental sustainability standards, for example.  A small trader is, however, limited to choosing suppliers wisely, and using their influence when feasible, perhaps working with other firms in the sector. The key differences between the supply chain responsibility of MNCs and SMEs, then, relate to power and influence. This principle also applies to other areas of sustainability. More power means more responsibility and the potential to make a positive impact.  SMEs need to address all the key issues of fair pricing, employee welfare, human rights and environmental impact within their own operations and – as far as possible – outside of them, bearing in mind their levels of resources and power.  The key questions here are: “Are we doing all we reasonably can to achieve sustainable practice?” and “Are we seeking to improve?”  Sometimes, acting in concert with other SMEs, can achieve more. The outcome may not be perfection, but honest efforts in the right direction will carry collective weight.  Sustainability and the SME advantage While corporate sustainability is often seen as the domain of MNCs, SMEs – because of their numbers and connection with, and impact on, society – are potentially more important players.  Many SMEs do not report their sustainability policies for several reasons, including informality, time and resource pressures, unfamiliarity with reporting standards and frameworks, or because a strong internal locus of value and ethical behaviour is already vested in their owners and leaders.  However, SMEs generally have high levels of engagement with their local communities and implement sustainability on an intuitive basis, drawing on leaders’ personal values. Reporting these efforts can bring significant advantages externally and internally.  Despite a lack of resources relative to larger companies, the key to building sustainable value for SMEs lies in making the best choices that are within their power at a given time. Sheila Killian is Associate Professor at Kemmy Business School, University of Limerick, and author of Doing Good Business: How to Build Sustainable Value

Jun 02, 2023
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Pride 2023 - How far have we come?

As this year’s annual LGBTQ+ celebration begins, we talk to six BALANCE members about their experiences in life and work As Pride celebrations kick off all over the world this month, six members of BALANCE, the Institute’s LGBTQ+ Allies network group, tell us about their experiences and what employers can do to support true equality.  Eimer Proctor Senior Manager When I first came out, Pride felt like a celebration and a safe space to be myself. Over the years, I’ve come to appreciate that this is not always possible, but I respect the path that has been forged by others to get us where we are today. During Pride 2023, I will remember those who lost their lives and stand in solidarity with my LGBTQ+ community around the world who still face persecution and continue to fight for their right to be who they are. It’s eight years since Ireland achieved marriage equality, and yet it was only in January 2020 that the law in Northern Ireland finally caught up. Given our current political situation in Northern Ireland, it’s unlikely that we will see any further advancements in LGBTQ+ rights and equality in the near future.  I find this very concerning given the rise in hate crimes, conversion therapy and anti-trans rhetoric in the media. It is up to everyone to help end discrimination for the LGBTQ+ community and promote equality.  There has been some great progress in recent years concerning diversity and inclusion in the workplace, but there is still work to be done to protect LGBTQ+ employees and at the heart of this is education.  Employers can introduce diversity and inclusion policies and practices, for example appoint diversity champions and work with employees to help them understand the appropriate language they should use in the workspace. Liaising with employees in the LGBTQ+ community and their allies is vital to understanding the obstacles the members of this community face every day. This, in turn, facilitates a greater understanding of how and why diversity and inclusion policies can directly impact business.  Those employees will, in time, become more comfortable to be themselves within their workplace, as they navigate the corporate world with the full support of their employer. Having these policies in place will also help to attract talented candidates, who will be carefully considering organisations with a strong commitment to diversity and inclusion.  Conor Hudson Finance Director It’s a general perception that Pride means ‘celebration’ and ‘party’. And, yes, this is a part of Pride – a platform to be yourself and express yourself, but still people are also joining Pride to ‘protest’ and it is important to remember that Pride started as a protest. Equality for LGBTQ+ colleagues in the workplace isn’t about sticking up a rainbow flag at the start of June.  Last year, in my organisation, a colleague and I launched an LGBTQ+ Employee Resource Group (ERG) with the intention of discussing Pride. While the initial reaction was positive, one response we received was, “We support LGBTQ+ rights; why do we still need to talk about Pride?” This remark justified why we needed an ERG – to increase visibility and offer a safe space to LGBTQ+ colleagues and colleagues with LGBTQ+ family. It is important for employees to feel part of an open and inclusive workplace from day one and allyship helps support this.  One of the actions we have taken to demonstrate visible allyship is to create MS Teams backgrounds and badges to highlight that this person identifies as an ally. We have found these a useful tool during recruitment and first introductions.  Allyship and open workplaces not only positively impact LGBTQ+ colleagues but can also support colleagues with LGBTQ+ friends and family.  Creating safe spaces for allies is equally important. They can’t be expected to know all the answers and they should be able to ask genuine questions without being judged. This culture not only creates open environments for LGBTQ+ colleagues, but also for other intersectional aspects of diversity. Hugo Slevin Head of Function Pride is a great day for us as an LGBTQ+ community, along with our allies, to come together and show unity, and strengthen through open visibility. It is always around this time of year that we start hearing the same question, “Why do we still have Pride?”, but I think it remains such an important day as shown by events over the past 12 months. First, we continue to witness attacks against our community members in ever-increasing numbers. Attacks across Europe are currently at a 10-year high and recent media coverage in Ireland has again brought this sharply into focus.  As a community, we should be able to feel safe in expressing and being who we are. Pride is very much our time to come together and have a platform to vocalise and display these concerns. We have also witnessed attempts to control the narrative on gay rights across the globe. Of significant concern has been what appears to be a regressing of rights in parts of the US, where this downward trend seems set to continue.  Even in Ireland, we have seen attacks on libraries and the cancelling of drag events in the last 12 months. Pride is the time of year during which our voices can be heard, and we stand against deliberate attempts to silence our community. Finally, Pride is fun! The streets of Dublin come alive – there is a real sense of occasion and happiness in the air. We get to walk the streets, dance and celebrate with our family, friends and co-workers. Jonathan Totterdell Major Programmes, Financial Services Pride in 2023 means a day of visibility and courage for both the progress we have made and the long path ahead for LGBTQ+ people around the world.  Recent events such as anti-LGBTQ+ Bills being passed in Florida and – closer to home, the rise of the far right and their anti-LGBTQ+ rhetoric – remind us that progress can be rolled back quickly, and it is imperative that those who live in relative safety can make some noise for those who can’t, without fear of repercussions. Over the past decade, I think we have seen some huge successes with gay marriage, a more open culture and a focus by corporates among Ireland to bring diversity, equity and inclusion (DE&I) to the C-suite. The financial services sector has been making really impressive strides. While there is a business case for DE&I, and many studies have shown that it leads to improved return on investment, I would like to see corporates in Ireland mature on this front, continue to grow their social consciousness, and see DE&I as a positive without the need to prove its financial return. Employers are expected to be ‘all in’ on DE&I in 2023, having the uncomfortable conversations that sometimes come with this topic, appointing champions and including DE&I as part of their leadership ethos. Inclusion is key on the DE&I agenda. You can have a diverse workforce, but without active inclusion, you will be missing a vital ingredient.  One thing I practice is to try to make sure everyone gets a chance to speak up at meetings and contribute ideas and viewpoints to decision-making. When people feel comfortable, they will be able to communicate their ideas more effectively.  Padraig Kilkenny Finance Manager For me, Pride is first and foremost a celebration. It is also an opportunity to reflect on the struggles for equality, not only in our own country, but for LGBTQ+ people across the world.  There is no doubt that Ireland has made considerable progress in terms of LGBTQ+ rights and fostering greater equality in recent years. Landmark victories such as the 2015 Marriage Equality Referendum and gender recognition legislation have increased visibility and acceptance across Irish society.  The Ireland of today reflects a society that embraces diversity and supports LGBTQ+ rights. This has never been more evident than at Chartered Accountants Ireland with initiatives such as the BALANCE network and, more generally, with its support for diversity and inclusivity initiatives. Personally, I am fortunate that I have never felt discriminated against in the workplace, but this is not to say that discrimination does not exist. What I have found helpful in my career is having LGBTQ+ representation at senior levels of the organisation and feeling that I have support from my colleagues and leadership.  I think this support can come in many forms from the highest levels where diversity and inclusion form part of the organisation’s strategy, values and by extension its culture, to more practical efforts, such as establishing and enforcing inclusive policies that protect LGBTQ+ employees from discrimination in areas like recruitment, promotion and benefits. Effective allyship is more than just having policies and strategies in place. It is about supporting and advocating for the rights, well-being and inclusion of LGBTQ+ employees.  Everyone should understand and challenge their own biases through education and listen to LGBTQ+ colleagues, valuing their experiences, and amplifying their voices and perspectives in discussions and decision-making processes.  Pride is a great marker in the calendar for employers to stop and reflect where they are on this journey to foster and support real equality across the board. Áine Crotty Audit and Outsourcing Manager As a leader of a team in my workplace, I believe in the power of people and the true potential that is inside each and every one of my colleagues regardless of their gender, age, sexual orientation, etc.  Therefore, being an ally to my LGBTQ+ colleagues is important to me because it supports them in reaching their full potential.  Non-LGBTQ+ professionals need to be aware of their actions and any potential bias they might have – without the awareness, there cannot be any action or change.  I would recommend attending events such as those organised by BALANCE so you can become aware of the issues your LGBTQ+ colleagues are facing.  There are also some fantastic resources and training out there about unconscious bias that will enable you to change the language you use or how you perceive and treat your colleagues.  After awareness comes accountability. As a non-LGBTQ+ professional, hold yourself accountable to making your work environment a more inclusive place for your colleagues. Make a commitment to yourself and others to change how you act with your LGBTQ+ colleagues for the better. Become an ally and be open and proud of that fact. Letting your colleagues know that you are an ally, and that you fully support them, can make them feel more comfortable in the workplace and allow them to speak more freely about any issues or discrimination they might be facing. It is widely known and accepted that culture comes from the tone at the top. Leaders, whether it be partners or senior executive management team members, need to bring DE&I to the forefront of their agenda. They need to live and breathe what they believe in and what they are trying to achieve for their employees. They need to lead by example and visibly demonstrate their belief in equality for all.

Jun 02, 2023
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“We need to value our contribution as women more because we often undersell ourselves”

Ann-Marie Costello became the first female partner on the Corporate Finance Team at Grant Thornton earlier this year. Her advice to other women? Back yourself and take opportunities I grew up in a family of medical professionals, so accountancy was not necessarily the expected path. I actually changed from veterinary to commerce and German the day before the CAO application process closed, so my career could have been very different.   Opting to do a degree in commerce and German gave me time to decide what I wanted to pursue as a career. I found I really enjoyed the economics and accountancy modules, so it felt like a natural progression to go on to do the Master of Accounting at UCD Smurfit School before taking up a training contract with KPMG Corporate Recovery.  At the time, the accountancy ‘milk round’ was more geared towards traditional audit and tax routes, so joining an advisory team was the path less taken, but I really wanted the commercial experience that came with it.  Hitting the ground running Having a solid background in accountancy meant I could hit the ground running in Corporate Recovery and I had great training working on trading insolvencies. After qualifying and becoming a manager with KPMG, I left Ireland for a year of ‘anti-reality’, travelling the world.  When I returned, I met with Grant Thornton’s Debt Restructuring Team, who were pivoting away from insolvency. I liked the team and the idea of working to bring businesses back onto a stable footing.  After a few years, I transitioned to Corporate Finance and I made Partner in January of this year, becoming the first female partner in the department.  These days, my work is focused on helping shareholders to position themselves for the sale of a business and to maximise value. Most of my work has an M&A or due diligence focus.  So, in my career so far, I have been able to work with businesses across the entire economic cycle. Fall-off in female talent It just so happens that the areas in which I have worked have been particularly male-dominated, especially at senior levels.  My intake and training contract had a healthy mix of female versus male trainees but, from the manager level onwards, I saw a fall-off in female talent.  The reasons for the fall-off vary, ranging from the lack of a clear path for career progression, lack of support or mentorship, and movement from practice to industry, to work-life balance considerations and family commitments.  The diversity, equity and inclusion (DE&I) agenda was not well-developed when I was training, and as that has begun to change in more recent years, I think that it has brought some significant benefits. I do believe we have seen a move towards greater equity at senior levels – although the pace of change is slower than we may like, I think we’re getting there. We do need more balanced representation to attract younger generations – the ‘if you can’t see it, you can’t be it’ adage.  Greater supports are needed in the form of allyship and mentorship, as well as ensuring the wider conditions to support talent retention are met – these include issues such as childcare, paternity leave (both availability and take up) and flexible working.  There are wider societal shifts that need to become the norm to level the playing field further. Gender pay gap reporting Gender pay gap reporting has been a welcome development in terms of driving good behaviours within business and providing employees with greater transparency.  However, nothing can substitute the conversations on the ground that can provide you with clarity as to where you stand.  Conversations regarding remuneration, promotion and performance are often uncomfortable, so we sometimes tend to avoid broaching these subjects.  Time and time again, recruiters and HR teams tell me that, as women, we often undersell ourselves and have lower expectations for remuneration. We need to value our contributions more.  Do your research, back yourself and don’t be afraid to step out of your comfort zone to take on opportunities as they present themselves. Learning the skills for success At some point in your career, you will need to do more than just to be ‘good at the job’. At that stage, developing your career becomes about your network, your profile and your leadership. It is important to learn to have confidence in yourself and to value your input. This often comes with surrounding yourself with the right people, so don’t be afraid to talk – to your peers, your friends and your network. You will only ever regret the things you didn’t do, or say, so speak up and say ‘yes’ to opportunities for development. In my own experience, navigating career development and parenthood is not without its challenges. You need all the support you can get and to always try to look after yourself.  We just had our second baby towards the end of last year, a year during which I was also going through the partnership process, as well as taking on the role of Chairperson of Chartered Accountants Ireland Leinster Society.  I took on a lot, but there were several opportunities that presented themselves around the same time and, weighing it all up, I chose to go for them. I am lucky in that I have huge support from my family and, in particular, my husband, who had to pick up some of the slack. The role of mentoring and networking I sincerely believe that mentoring and sponsorship are key to development, and I’m glad to see so many businesses providing necessary resources and supports in these areas.  It’s important to have someone who can mentor you – someone who will tell it how it is, act as your sounding board and provide constructive criticism.  It is equally important to have a sponsor within your organisation – someone who will support you and guide you in your career development. I would encourage these relationships to be with both male and female mentors and sponsors.  It can often be helpful to have a mentor outside of your work environment to speak to about your work and personal development. Chartered Accountants Ireland provides a mentorship programme for members, which is a helpful resource. Networking can seem like a daunting task, particularly with the reopening of society post-pandemic. However, it really is never as bad as it seems.   The network of people Chartered Accountants will have from their time at university and training will be huge, and the Irish accountancy profession is particularly well-connected at home and abroad.  Try to keep this network active. You never know when you might be able to help someone, or when they might be able to help you.

Jun 02, 2023
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Brand-building for competitive advantage

Clever branding can mean the difference between success and failure for small businesses competing in a crowded market, writes Gerard Tannam Branding is a tool available to every business. Every type of business can compete for their best customers with a strong brand that influences choice.  Because a smaller business can play to the singular strengths of its brand relationships with customers to distinguish it from others, it can level the playing field with its own competitive advantage. A strong brand is good for business. It provides an advantage over competitors by distinguishing a business from them in a way that matters to customers and influences their choices.  Despite its importance, however, this simple business tool, which is available to every business, is often misunderstood, underestimated, and underused, particularly by smaller companies. ‘Brand’ can be defined in many ways: as a mark of origin or quality, as image or reputation, as a proposition or promise, and even as a badge of community or a shared belief system.   None of these definitions is entirely satisfactory, however. While each definition says something true about what a brand is or can be, none captures the part a brand plays in choice. A definition of brand As well as being a tool that businesses use to influence choice, brand is also the tool that customers use to make their choices and reassure themselves that they are correct.  When customers are spoilt for choice or do not have the time or inclination to analyse every buying decision, they often rely on brand to help them choose. And so, the brand tool is used in two different though complementary ways:  a business uses brand to help it become the natural choice of its customers;  its customers use brand to help them make the right choice of product or service.  A brand is a tool that influences choice by reflecting the relationship between buyer and seller and the value they exchange. Marks of quality or identity, such as names, symbols or logos, are means of representing the brand relationship and its value, rather than being the brand. Wedding rings, for example, symbolise a relationship (marriage) between two people – they are not the relationship itself.  The brand bridge To understand brand and how it works, consider the relationship between buyer and seller as a ‘bridge’. Just as a bridge is designed to enable people to cross over safely, quickly, and easily from one side to the other, a brand bridge enables people to exchange value safely, quickly, and easily. The two-way traffic on the bridge of give-and-take between buyer and seller suggests a partnership of equals, both of whom want something the other has and must agree on the value to be exchanged through the transaction. Brand bridges are more handshake than arm wrestle, a basis for good and sustainable business. A definition of branding Defining brand as a tool for business leads to a definition of ‘branding’ as the influencing of choice by building a relationship between buyer and seller based on the value they exchange. A brand relationship establishes a connection between a business and its customers around the value each understands the other is offering.  Branding involves putting the brand relationship to work to build and maintain the commercial relationship with existing customers and turn potential buyers into new customers. Why branding matters to small businesses Success in business comes down to an ability to influence choice. A superior product or service only takes a business so far.  Many hardworking businesses have brought an exceptional offering to market and failed. To be successful, a business must influence enough of the right kind of customer to choose what it brings to market. Brand relationship plays a critical role in the choices customers make. Even in a busy marketplace, where customers are spoilt for choice, a strongly branded business can lead its market and command a premium for its product or service.  Every business has a brand, strong or weak. The brand’s strength or weakness results from actions taken by the business in building the relationship with its customers.  A strong brand is especially important for small businesses, which are unlikely to have the spending power or marketing resources available to larger competitors.  The smaller business can play to the strengths of its brand relationship with its customers to distinguish it from other businesses in the marketplace, and so level the playing field.  Five steps to defining a brand 1. Define the value to be exchanged The value to be realised through the brand relationship is not set by one side or the other but must be agreed. For any relationship to work both parties must continue to see and realise its value.  However, while the brand relationship is defined by the value sought by the buyer and offered by the seller, this must at least match the seller’s asking price for the exchange to work.  The asking price, which the business requires for the exchange to be profitable, is a useful starting point for defining value.  This is typically based on the costs of the resources the business must invest in the relationship, plus its margin or premium.  Then the business considers how the customer is likely to rate the benefits on offer, if this accumulated value matches or tops the asking price, and whether they are likely to  pay it.  2. Identify and target the ‘best customer’ For the brand relationship to work, it is vital that the business carefully chooses the type of customer with whom it and its value proposition are best matched.  When business development lacks focus, a business will attract a wide variety of prospective customers, some well matched with it, but many not.  A business that deals with too broad a mix of customers will struggle to profitably realise the value in many of its individual transactions.  A well-matched or ‘best customer’, on the other hand, will add predictable and significant value to the exchange and deliver the premium that the business needs. Your best customer:  needs what you have to offer, considers it essential;  wants what you are offering, finds it highly desirable; values what you offer, prioritises it above all others; engages fully with all of the elements of your offering, not just its purchase; can pay for it (an ability not confined to affordability). 3. Identify and fix the customer’s ‘key problem’ People buy from other people to fix what they experience as a problem and to enjoy the benefits that result. Potential customers are more likely to be ‘best customers’ when they consider that the product or service offered by a business fixes their key problem. There are two aspects or sides to a customers’ key problems: the practical and the social.  The practical is what the product or service does and the direct, functional benefits it provides, while the social is how the customer relates to others and the world through their choice of that product or service and can be understood in terms of how it makes them feel.   For example, someone is thirsty and buys bottled water. Any bottled water will do. Another customer is thirsty but is concerned that many bottled water products use irreplaceable natural resources.  They choose a brand of water that is carbon-neutral with recycled packaging. The business with the sustainable brand has found its best customer; the customer has used brand value to meet all their needs and fix their problem. 4. Identify and fix both aspects of the key problem More customers are choosing products and services that fix the practical and social aspects of their problems, so it is important that a business identifies both aspects and determines the role that it will play in fixing them. This role must go deeper than the complementary role of seller to the customer’s buyer, and deeper too than the functional role played by the business in fixing the practical problem. When the product or service offered by a business is largely the same as that offered by its competitors, it is the role that the business plays in resolving the social aspect of its customer’s key problem that adds real value, and greater profitability, to the transaction. For example, a business owner seeks an accountant to prepare monthly accounts to support their management of the business. Any suitably qualified accountant can answer this practical aspect of the business owner’s problem.  However, the owner struggles to make sense of how accounts relate to their business and can feel overwhelmed and helpless.  They will choose an accountant that fixes this personal (social) part of the problem, guiding and advising the owner to help them to understand the numbers and the performance of their business. 5. Provide information required for the buying decision When customers are considering which product or service to choose, they will search for some or all of 10 types of information about how a business solves their key problem: Attraction – ‘What is it about this offer that appeals to me?’ Engagement – ‘What tells me that it is right for me?’ Demonstration – ‘How does this offer work?’ Sample – ‘How can I try it for myself?’ Testimonial – ‘Who else has benefitted from this offer?’ Proposition – ‘How do I take up this offer?’ Delivery – ‘How is this offer provided to me?’ Support – ‘How will you help me make the most of it?’ Recovery – ‘What will you do to help me if something goes wrong?’ Feedback – ‘How will I let you know what I think of your offer?’ Final word When the success of a business depends on the effectiveness of its brand in influencing choice, building brand relationships should not be left to chance.  Branding is a tool available to every business. Every type of business can compete for their best customers with a strong brand that influences choice.  Because a smaller business can play to the singular strengths of its brand relationships with customers to distinguish it from others, it can level the playing field with its own competitive advantage.   Gerard Tannam is founder of Islandbridge, a brand planning and strategic development company

Apr 11, 2023
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