Spotlight

Here are the 14 ways Chartered Accountants and the wider profession are likely to evolve into the future. In 1996, chess grandmaster Garry Kasparov was famously beaten by IBM’s supercomputer, ‘Deep Blue’. This event was heralded as the real dawn of the age of artificial intelligence (AI) and the beginning of the eclipse of human intelligence. Kasparov sees it differently. He believes that while the rise of AI heralds a change, this change will not see human intelligence becoming redundant. Instead, AI will “help us to release human creativity. Humans won’t be redundant or replaced; they’ll be promoted.” Kasparov’s vision is one where machines and humans work together to create smarter tools, and where human work will evolve and adapt to open up new careers and industries in fields that are yet to be invented. Although machines won’t replace humans, the impact of technology on the accountancy profession will be significant. Many reports have trumpeted the imminent arrival of new and powerful learning machines that will replace accountants. While accountancy remains one of the occupations liable to disruption, the future is less dramatic with a transformation of the role and impact of accountants more likely than wholesale replacement. Here are some of the changes we can predict. 1. The gig economy The concept of the ‘job’ is fundamentally changing with professional service firms increasingly utilising flexible resources such as contingent workers and freelancers. Platforms such as Upwork.com allow professionals to sell their services to a global audience. According to Forbes, there were 53 million freelancers in the US in 2016. By 2020, this will rise to 50% of workers (this does not mean they will be full-time freelancers, however). 2. No-code AI  Software engineers and data scientist are expensive and in demand, but a new generation of technology is emerging. No-code AI will remove the need for engineers, making AI far more accessible. Some tools, such as Lobe.ai, use simple ‘drag and drop’ interfaces while others require no more technical ability than that needed to create a simple macro. These tools will enable skilled but not specialist users such as accountants to develop fully automated scripts with no coding know-how required.   3. The end of reconciliations  The good news is that the end of reconciliations is in sight with the rise of distributed ledger technology. Blockchain is one such technology and is probably most associated with cryptocurrency. One of blockchain’s most exciting aspects is that it is immutable, meaning a blockchain ledger will be permanent with an unalterable but transparent history of all transactions. Each verified transaction is timestamped and embedded into a ‘block’ of information, cryptographically secured and joined to the chain as the next chronological update. Blockchain’s applications potentially include decentralised digital, secure identity systems; the verification of qualifications through personal ‘skills wallets’ and reliable records of property ownership. Another new application already happening in real estate is tokenisation, which, as the name suggests, is the representation of an asset or equity in token form, which can be fractionally divided and held. A tokenised property would be similar to a real estate investment trust (REIT), but more flexible and low-cost due to the reduction in intermediary fees. 4. No more late night month-ends As processes are automated and systems post data from several sources, consolidate and reconcile it, month-end cycles will become far quicker and more accurate. 5. The end of sample auditing Audits will become more efficient and accurate as the audit of 100% of companies’ financial transactions becomes possible instead of a sample. AI will provide unique insights and a complete view of the financial health of the company, uncover fraud, highlight inefficiencies and provide further value from the audit. 6. Drones and robots  Amazon is already embracing using robots in its warehouses and testing drones for customer deliveries. Power utilities use drones to survey their lines while surveyors use them for mapping terrain. Just this year, PwC used drones during the audit of RWE, a German energy company, to measure stock, including coal reserves at a power station in Wales. 7. From compliance to insight Technology will simplify many processes and augment our human capabilities. Over the next 20 years, there will be less focus on technical skills alone and a higher requirement for critical thinkers and those who can provide insights. Clients will likely prefer to deal with a human over a robot, and Chartered Accountants will have the opportunity to become a financial storyteller by bridging the gap between computers and the business. 8. Real-time, self-service data Cloud technology has made accounting software accessible to non-specialists on any device and in any location. Information is available in a format that most business owners can finally understand. As this becomes the norm, the role of the accountant will be to give peace of mind, to provide reassurance, and to act as a sounding board. He or she will also be someone who understands the capabilities of the technology, can ask the right questions, and can find the right solutions. 9. Lifelong learning will become an imperative Speaking at this year’s Influence conference, Ravin Jesuthasan, a thought leader on the future of work and automation, spoke about the impending changes to work. He said that while “we don’t know what is coming, we need to keep retooling ourselves”. We must change our mindset, he said, as the old model of ‘learn, do, retire’ is replaced by ‘learn, do, learn, do – repeat’. In this situation, lifelong learning is no longer optional; it will be necessary to remain relevant and employable.  10. The pyramid is collapsing  The familiar pyramid-shaped organisational structure will change. Traditional entry-level roles are unlikely to be needed in the same volume as routine tasks become automated. Conversely, the requirement for qualified staff is likely to increase. The challenge for organisations will be balancing these needs: how to train and develop individuals to the required level with fewer entry-level positions. The question for educators and those entering the workforce is how to bridge this gap effectively. 11. Thinking differently  While technical skills will remain crucial, a premium will be placed on soft skills, which are the skills that differentiate us from robots. Emotional intelligence, presentation skills and critical thinking will become even more valuable in the years ahead. 12. Chatbots and decision-making Instead of diving into CHARIOT for technical information, accountants may have a unit on their desk – think Alexa or Google Assistant – which will be there to answer questions instantly. We could also see AI take a role in the review of complex documents so that, rather than spend hours poring over a 500-page contract, a machine will scan a document in seconds and determine whether it contains compliance and risk issues, for example. 13. Planning cycles will contract Speaking at the Influence conference, Valerie Daunt, Human Capital Partner at Deloitte, said: “Long-term plans are gone”. Instead, organisations must be able to change course quickly. To underline this point, Standards and Poor’s recently reported that the average lifecycle of companies is shrinking, with the average lifecycle of companies on the S&P 500 expected to be just 12 years by 2027 – down from 33 years in 1964. 14. The changing nature of the workforce The workforce is fast becoming more diverse, more international and with different values. Today, over 20% of the Irish population was not born in Ireland, and this rises to 33% of the working-age population in Dublin. Attitudes are changing too – one recently published survey found that 60% of workers are willing to take a pay cut to work in an empathetic company, while 35% said they would consider taking a reduction in salary in exchange for more annual leave. It was also reported that 50% of millennials would take a pay cut to work for a company that matches their values and that this cohort values “experiences over stuff”. Joe Carroll is Head of Professional Development at Chartered Accountants Ireland.

Tony Óg Regan ACA, a performance psychologist and former inter-county hurler, outlines the key lessons you can glean from top athletes and teams. Develop the person first, employee second Personal purpose What difference do I want to make in the world? How do I add value to my relationships, community and organisation? Such questions are tough to answer, but purpose fuels our drive and energy and gives us clear direction and meaning in life. A purpose is your big ‘why’ and provides meaning about why you do what you do, why you make the choices you make and why you appreciate what you have. When we have big decisions to make, be it personal or professional, asking yourself ‘Why I am doing this?’ is a great place to start. Personal values What is my internal compass for making decisions? How do I judge what is right or wrong? What behaviours are important to me? And how do I want to demonstrate them? The top sportspeople and leaders have a very strong sense of who they are and what they stand for. They are true to themselves, regardless of the situation. A value that is very strong in most leaders is honesty. They speak openly about what was done well and what wasn’t delivered on, and why. Sometimes we can get caught up in making plans, to-do lists and goals, but we shouldn’t overlook the question: who do I want to become? Personal strengths and skills  Awareness is vital in identifying your main skills and strengths. In sport, we look at individual and team goals and behaviours. What are the key performance indicators in your role and what are the key behaviours you strive to demonstrate every day to make these happen? It is important to have a clearly defined measure of success for people, as we thrive on making progress and working towards a goal. Self-reflection on our skills and behaviours is also critical while feedback from respected peers crystallises the learning. Personal goals  Having a goal and making progress towards goals is what fulfil is us; it stops us stagnating. We need to continually adapt and improve, but the challenge is to simultaneously meet the needs of clients, customers and the organisation. Setting out specific goals in our personal and professional life will mean that we consistently grow and add value. Many sportspeople perform on a Sunday, but they know the importance of preparation and practice to enable their best performance. As the Spartan saying goes, “Sweat more in practice, bleed less in battle”. What practices or routines do you have to improve your work performance? Personal energy  Self-awareness is critical for any leader. Knowing yourself, the impact your behaviours have on others and recognising the emotional moods/needs of others is a fundamental skill all top leaders possess. The energy you bring or don’t bring into the team affects the team’s performance and people’s trust in you. Leaders must expand and renew their four dimensions of energy – physical, mental, emotional and spiritual – so that they can perform at their best and make the right decisions. There will always be challenges, but our attitude and how we respond to adversity will define our results.   Developing high-trust teams The framework I use when building high-performance teams consists of these components: Right compass – vision, values, strategy, goals, roles and responsibilities; Right people – capability, character and capacity; and Right cohesion – how we work together, social and task cohesion (i.e. team dynamics). Team purpose In Viktor Frankl’s book, Man’s Search for Meaning, he states that “he who has a strong enough ‘why’ can bear any ‘how’”. He survived eight concentration camps by focusing on his ‘why’ every day. He tapped into his humanity and by helping others, he redefined his purpose. So, what difference do you wish to create? Team values Core values are the fundamental principles or beliefs of a person or organisation; their views of what is important. Our values affect our decisions, goals and behaviours. They are standards that guide our judgements, actions and attitudes. These guiding principles dictate behaviour and can help people differentiate between what is acceptable and unacceptable behaviour. Regardless of the situation or the scoreboard, the team should live these values, the non-negotiable behaviours we expect from each other. What we do when no one else is watching doesn’t guarantee a win, but it does give us a better chance of winning. A team that has a strong value system, in my experience, is more connected, committed and accountable. Team goals In working with elite sports teams, I break down the route to success into task-focused and training-focused goals during the week, and process-focused and performance-focused goals for match day. When we get these pillars right, the score takes care of itself. In business, we set daily, weekly, monthly, quarterly and yearly goals. What we can learn from sport is to review these more regularly. When I played for Galway, every Monday we reviewed our key performance indicators against our targets. We identified what we did well, and we were honest when we underperformed and took responsibility in practice to improve on this. In business, however, we sometimes do only yearly reviews with staff. It has been shown that feedback improves performance by up to 50%, so why not tell your staff more often what you appreciate about them, what they can do more of and why? Team cohesion A key element of successful teams is strong, honest and trusting relationships among team members. When an individual comes under pressure, he or she relies heavily on teammates to support, encourage or challenge him or her to higher effort and performance. The best teams don’t leave each other isolated at any stage; they are aware when someone is down or struggling. They recognise that when someone is struggling, the team struggles. When someone is frustrated, the team is frustrated. Creating an environment where people feel valued, trusted, connected and respected is how we will get the best out of each other. Leaders must strive to make people feel this way. High-trust teams are comfortable displaying their fears and vulnerabilities; they aren’t concerned about the judgement of others. They communicate openly and positively challenge each other to do better. Above all, they care for the people they work with. Honesty and accountability In sports teams, we are constantly under the microscope. 82,000 people attend the All-Ireland final each year with millions of viewers worldwide. After each game, we review our performance on video. If you were videoed for a week in work, what would people see? Would you be proud of the effort you put in, how you communicated with colleagues, and the skills and behaviours you demonstrated? Sports stars are not afraid to ask hard questions of themselves and their teammates. When we underperformed, we got help from our coaches to improve our skill deficit. Does your organisation provide adequate coaching to staff if there is a skills deficit? Summary Developing individuals and teams requires a holistic approach. As individuals, it is important to identify key strengths, skills and development areas. It is not enough to be good technically; that is only 20% of your role. The 80% that we must continue to review and develop is our people skills, learning and behaviours. Having a strong culture of feedback in your organisation is vital to raise responsibility in people. Building high-performance teams takes effort but by putting the key pillars in place (right coordinates, right people and right team dynamics), you can create repeatable sustained performance and success year-on-year.   Tony Óg Regan ACA is a performance psychologist and has played at the highest sporting levels with the Galway senior hurlers.

Many leaders struggle to adjust and align in knotty situations, but it is possible to lead with clarity in a VUCA world.   We are in a VUCA world: volatile, uncertain, complex and ambiguous. Technologically, economically, politically, environmentally and socially, the sands are shifting beneath our feet. Change is now no longer confined to organisations: it is system wide, interconnected and discontinuous. Wherever we look, leaders are challenged as they struggle to adjust and align to situations of increasing complexity. Navigating in a context such as this requires different skills, attributes and abilities. Through my work as an academic and advisor, I have been fortunate to closely observe and assist organisations facing and managing change in the most extreme environments. From that work, a number of key lessons surface: areas of reflection that will help you and your organisation develop your vision and align to an environment in flux. Mental space The first involves thinking about how you frame your leadership. Leaders are ‘pathfinders’ within organisations. At their best, they articulate a shared vision, understand strategy as a dynamic process, and ‘sense make’ from confusing environments and mixed messages from stakeholders. Having external sounding boards can help leaders untangle conflicting information and allow them perspective amidst frantic activity. An analogy that may be helpful comes from studies of emergency medicine. When a patient is in difficulty, they often have a number of skilled physicians working on them at the same time. But the consultant – the leader – is standing back, often behind and watching. They can’t just look at blood pressure, or respiration, or bleeding – they need to see it all and how it connects. When I work with leaders dealing with extreme volatility, they identify the cultivation of this mental ‘space’ as a way to manage complexity and confusion. Alignment The second is the need to reflect on your organisation and what you think it is currently established to do. This may seem like a strange question but think of it in this context – Harvard academics Heifetz and Linsky have observed that “there is no such thing as a dysfunctional organisation, because every organisation is perfectly aligned to get the results it currently gets”. So, asking what your organisation is actually aligned to do is useful, even if it is sometimes uncomfortable for leaders to identify hidden areas of dysfunction.  Enacted leadership The third is your own conceptualisation of what leadership actually is. We have traditionally tended to see leaders as having some significant attributes that were usually positional (at the top), gender-based (male) and heroic (superhuman). Thankfully, we now recognise that leadership appears at all organisational levels and often looks very different from the stereotype. Recognising enacted leadership when we see it is crucial. Rewarding and protecting those leadership behaviours you want within your organisation is just as vital. Retired US General, Stanley McCrystal, reflects on this in his recent book on iconic leadership. He comments that leaders are just humans surrounded by those who enable and find meaning in their activities. Leadership is all about context and is an organisational process, as well as an individual one. Timing and trust Sometimes timing is everything. One of the things that my research has illustrated is that common guidance on managing change doesn’t work in all contexts. Indeed, when an organisation is under stress, introducing what is often called ‘a sense of urgency’ can be actively unhelpful. Instead, a paced and inductive approach is more useful. I saw this most critically in the newly established Police Service of Northern Ireland, which embarked on radical, rapid change in a highly volatile environment. Ensuring that the organisation had a period to prepare was important, even though it drew criticism at the time. Thinking about how you time and pace big decisions and their implementation allows you to be in a better position for psychological and structural transition to be successful. Leaders often talk about trust and empowerment, but it takes real courage to turn talk into active practice. One leader I spoke to was keen to redistribute authority quite radically down his organisation but admitted that when staff started acting on this and taking decisions, he was momentarily horrified. He realised that he had a choice to make: to roll back into his comfort zone or move ahead and, in doing so, really trust (and back up) staff who were nervous themselves. He chose the latter and reaped the rewards. The ratcheting of risk Resilience is a real buzz word at the moment. We tend to think about it in terms of our own personal ability to recover from setbacks. However, resilience is also an organisational attribute and all leaders need to consider how equipped their organisation and people are to cope with a shock to the system. In my work with leadership teams, I often ask them one question: what three things would need to happen in close succession for your organisation to be in real trouble? When potential threat is conceptualised in this way, it’s much easier (and also scarier) for leaders to see environmental factors that could force them off track or worse, lead to catastrophe. Having identified not just single factors, but the ratcheting of risk, they can then prepare more appropriately. The duty of hope One of the most significant personal challenges for any leader is managing through periods of stress and instability. Continuing to demonstrate positive behaviours in negative environments is difficult to sustain but vital to those who are looking for direction. During the Northern Ireland peace process, senior officials in the Irish Department of Foreign Affairs coined a phrase for periods of difficulty – they saw it as having a ‘duty of hope’. Essentially, this spoke to two aspects of the challenge that faced them: their professional duty and their personal emotional response. As such, it was a powerful and accessible idea to hold on to in the darkest of times. Past and present Shakespeare famously wrote that “the past is prologue” and this is never truer than in an organisation under pressure. Understanding the history and legacy of your organisation will tell you a great deal about why it behaves the way it does. It is possible to identify where the past impacts upon the present just by paying close attention to organisational myths. Think about the stories that your organisation members tell, especially to new people. Who are the heroes in these stories and who are the villains? This will tell you a lot about your culture and assist in managing diverse internal interests and perspectives.  Conclusion Leading in complexity is tough; having time to reflect even when (or especially when) volatility is at its most disruptive is critical. Barack Obama and John McCain were both running for the presidency of the United States of America when the financial crisis hit. McCain suspended his campaign and suggested that the first presidential debate be postponed. Obama refused, commenting that “a president needs to be able to focus on more than one thing, at one time”. It was an inflection point in the campaign and McCain never regained momentum. Obama had hit upon a fundamental truth of managing in extreme turbulence: the need to at least attempt the management of environmental complexity. These lessons – the cultivation of mental space, an awareness of aspects of dysfunction, leadership as a whole organisation process, the timing and sequencing of change implementation, empowerment as an enacted reality, what the past tells you about the present, and personal and organisational resilience – should act as a guide for implementing your vision in challenging times. We are in a VUCA world. Dr Joanne Murphy is a Senior Lecturer and Interim Director at the William J. Clinton Leadership Institute, Queen’s University Management School.

The apparent ineffectiveness of leadership development programmes is a key concern for organisations worldwide.   $50 billion is spent globally each year on leadership development according to a recent UK Corporate Research Forum (CRF) report entitled Leadership Development – Is It Fit for Purpose? This accounts for almost 40% of the $130 billion which Deloitte estimates is spent annually on global learning and development. US companies alone reportedly spend almost $14 billion annually on leadership development but despite this substantial investment in leadership development, the CRF’s and Deloitte’s latest Global Human Capital Trends reports highlight a growing gap in CEOs’ confidence in the ability of their organisational leadership to build organisations for the future. Executive leadership programmes are therefore being challenged and re-evaluated, particularly in light of more cost-effective and transformative learning technologies now available to organisations. From a business perspective, the obvious questions are: why continue to invest in leadership development? And if we do, is it possible to ensure a return on this investment? At this juncture, it is important to note the difference between leader development, which is directed at an individual level, and leadership development, which is defined as “the expansion of the organisation’s capacity to enact the basic leadership tasks needed for collective work: setting direction, creating alignment, and maintaining commitment”. The philosophy of leadership at UCD Smurfit Executive Development is firmly on the latter, leadership development, based on the view that leadership is a contact sport and requires a more holistic focus. However, the continued level of spend indicates that leadership development programmes remain a priority within organisations. Furthermore, participants’ satisfaction levels with their programmes demonstrate evidence of their positive impact, at least at the individual executive level. The 2017 Financial Times Corporate Learning Pulse Survey reported that 94% of senior executives indicated that undertaking such programmes had improved their business knowledge, competencies and confidence, while 85% acknowledged that the programmes had enhanced their ability to perform more effectively in their roles. So if executives report a positive impact from undertaking leadership programmes, why is this not being leveraged within organisations? If we are to ensure that investment in leadership development yields tangible results, a number of important factors must be addressed at the outset. The re-entry phase is a significant determinant of enhanced performance  The re-entry phase relates to the first 12 months after completing a programme. It is the period when the executive is most likely to demonstrate enhanced performance in terms of actions performed in the executive’s role that result in achieving the organisation’s goals. While enhanced performance is not limited to this period, this re-entry phase is critical because it corresponds with the executive’s return to the organisation as a re-energised, more confident, self-assured individual seeking to make a meaningful contribution beyond her or his role. The likelihood of the executive achieving enhanced performance increases where there is alignment of vision, values and purpose between the executive, those in interconnecting roles, the wider organisation and the environment in which the organisation operates. Successful re-entry is only partly determined by the executive  This is a common misgiving within organisations; particularly where the “fix it” mentality exists and very little regard is given to how the executive will be enabled on her or his return to apply their learnings. It is only common sense that the executive must be enabled to apply her or his learnings on return to the role they occupy. However, it is often the case that significant focus is placed at the outset on the decision to invest in a particular programme, but very little attention is given to how the organisation can support the executive’s return on completion of the programme. Equally, the environment in which the organisation operates plays a key role – particularly in the public sector and civil service – impacting emerging opportunities and, in ideal circumstances, supporting new directions being taken. Alignment of motivations and expectations is crucial  Hidden motivations play a pivotal role in managing the expectations of executives when they complete the programme. This becomes challenging, for example, when the motivations for the programme were unclear at organisation level. Conflicting expectations also occur where little guidance is given to the executive before her or his completion of a programme.  Some organisations, for example, have poor nomination and selection processes, creating resentment for those who are not selected and a sense of confusion for the selected executive who is unsure as to the basis for their selection. At times, organisations fail to communicate adequately during the onboarding phase of the programme – that is, the time in the lead-up to the commencement of the programme. A typical example of this is where an executive may be selected to undertake a leadership development programme as a high-potential employee. If the organisation has not thought clearly about the potential to promote this executive on her or his return, it can lead to immense frustration on the part of the executive and unfortunately, in some cases, a decision to exit the organisation. Pre- and post-programme phases are inextricably linked Successful return to the organisation cannot be disconnected from the pre-entry stage. Therefore, responsibility for this pre-entry stage rests largely with the organisation. The ways in which the programme is conceived, designed, developed and communicated, and the executive selection/nomination process are all key determinants of a successful re-entry phase. Lack of organisational communication in the pre-programme phase with other people working closely with the executive can cause tension on the executive’s return. Where there was a lack of clarity on the executive selection process, feelings of neglect, being forgotten or excluded can emerge at peer level, making it difficult for the executive to be open about their experience. Therefore, the importance of fair process is essential and impacts the level at which the executive can share her or his learnings and insights with peers in particular. Shared understanding of the organisation’s goals is key It may appear obvious that developing leaders requires a change in the habitual way of doing things and putting new thinking into practice within organisations. However, the importance of the role of the organisation in this respect is sometimes underestimated. Where the organisation is culturally open to change and collectively embraces the value of learning, the executive is afforded opportunities beyond her or his role to play a transformative role within the wider organisation. Key to this is that the senior leadership team is invested in the learning opportunity provided by the leadership development programme. Those who work closely with the transformed executive are drawn positively to become part of what he or she aspires to achieve within the organisation’s mission. Positive transformation naturally leads to the search for new purpose  Leadership development programmes play an important role in the transformation process. The transformed executive emerges with an enthusiasm to share her or his learnings in seeking new purpose and meaning beyond themselves. The point at which this opportunity is not provided coincides with frustration on the part of the executive, whose natural inclination is to feel trapped with the desire to become unstuck. This inevitably results in the executive questioning her or his future, which is detrimental to retention of talent. Conclusion Organisations must be mindful of several factors before embarking on a leadership development process. The programme’s starting and end points should not coincide with the actual programme schedule itself; rather, from the design phase right through to facilitating the executive’s return to the organisation and enabling the application of her or his learnings within their teams and the wider structure. Organisations need to understand that the returning executive will have new expectations of what he or she can achieve at a wider organisation level. These expectations have the capacity to play a transformative role within the organisation if the decision-makers are open and have considered this in advance as part of the programme planning. Helen Brophy is a Director at UCD Smurfit Executive Development.

Despite much public debate, gender inequality persists. It is now time for leaders to make good on their words and act. As a classic armchair tennis fan who engages typically around the grand slam cycle, I couldn’t help but reflect on some of the coverage that followed Andy Murray’s recent emotional announcement of his probable imminent retirement. What was remarkable to me was the almost equal balance between Murray as the ‘tough as teak’ competitor who followed his dream from Dunblane in Scotland to become a multiple grand slam winner and that of Murray as a champion of gender equality. His role in championing female athletes, by forcefully arguing for parity of tennis purses, chiding the authorities at Wimbledon for not playing more women’s matches on centre court and, memorably, for hiring a female coach, Amelie Mauresmo, at the height of his career. Or maybe what is, in fact, remarkable is that such acts or statement of equality appear to be so rare in the sporting arena. The business case In language perhaps more familiar to us as accountants, the business case for gender balance has never been clearer. INSEAD research shows that diverse businesses benefit from higher levels of creativity and innovation, greater customer satisfaction, more informed investment decisions and increased performance. But despite all the talk around gender equality in the workplace, women remain under-represented at all levels of management across all industries. Everyday discrimination continues to be a reality. McKinsey data from 2018 is very stark in this respect. Women have to provide more evidence of their competence than men while having their judgement questioned in their area of expertise. Women are also twice as likely as men to have been mistaken for someone in a more junior position. Being the only woman in the room is still a common experience and, consequently, women are heavily scrutinised and held to higher performance standards. There is no silver bullet that will achieve greater gender diversity. Good intentions are great, but companies must show concrete actions. It is clear from INSEAD’s research that achieving true gender balance requires more than just adding women to your workforce. Companies must increase their total talent pool by actively embracing female return-to-work programmes. Organisations must also acknowledge that there will be varying levels of motivation internally to achieve gender balance. Seeking to engage not just the advocates, but those sitting in the middle is crucial to effective staff engagement. Personal experience All of this might have been something I was vaguely aware of until it became part of my professional life. I am proud of having been part of the diversity and inclusion journey across the Canada Life and Irish Life Groups in Ireland and the UK and, more recently, as part of this Institute’s Diversity & Inclusion Committee. While my initial motivation to step up was probably driven by a personal commitment to ensure a strong leadership voice for LGBTQ+ issues, my learning journey across the wider diversity and inclusion agenda has been profound. We know we are early on our diversity and inclusion journey, but that comes with the advantages of learning from those who are further along the path. Some of the work we are doing in my organisation at a group level include:   The formation of a ‘Women in Leadership Group’ early in 2018 to support and promote existing and aspiring female leaders within the business, running focused development workshops for some of our pipeline of female talent which aims to advance opportunities for women into leadership roles; The overhaul of recruitment policies and practices through a diversity lens; The expansion of maternity and paternity policies to encourage full take-up; and The introduction of unconscious bias training across all management tiers. At board level, diversity is now a key part of the debate related to culture. In my own experience, it drives a much deeper awareness of – and focus on – the people aspect of business strategy. It also drives accountability at executive level; setting targets and measuring progress can be challenging, but it does drive activity. And yet we know we have so much still to do. And sometimes you are pushed into action, as we have seen with legislation across the European Union (EU). In the United Kingdom (UK), the Gender Pay Gap Report was published in April 2018 and momentum has continued around this to address the challenges it highlighted, albeit the data shows the gap only gradually closing between 2012 to 2018 at a national level. Canada Life UK is a signatory to the UK Women in Finance Charter and has committed to having 30% of senior management positions occupied by women by the end of 2020 and 35% of senior management positions occupied by women by the end of 2023. Similar reporting will follow shortly in this country and companies need to prepare for it, but there is an opportunity for some to embrace and lead on the challenge. Turning intentions into reality So, what can leaders do within their own organisations to advance change? Consider some of the actions below: Be a vocal and visible sponsor and advocate for women; Undertake a ‘root and branch’ review of your systems and processes to identify biases; Challenge yourself and your recruitment partners to plan ahead and build a strong pipeline of diverse talent for your business; Invest in the development of your workforce equally with tailored programmes to meet different diverse needs; and Set an objective for senior leaders to keep gender diversity on everyone’s agenda. Good intentions are great, but they are no substitute for on-the-ground activity. As accountants, we are respected voices within our businesses and we have a perspective that can lead or push gender balance as a business priority. With all the momentum around gender diversity, now is the time get off the fence and show your support for this positive wave of change. John McNamara is Managing Director of Canada Life International (Assurance) Ireland and sits on the Institute’s Diversity & Inclusion Committee.

As the ‘future of work’ debate continues, leaders can take three practical steps to future-proof their business.   Every week brings new stories about how the world of work is changing. Driven by forces such as advances in technology, global inter-connectedness and growing consumer expectations, new disruptions and innovations are appearing across virtually every business sector at a faster pace than ever before. But surely the world of work has always undergone constant change? Indeed, authors such as Charles Handy have been writing about this ‘new’ world for many years. Haven’t we, as humans, always adapted and continued on our way? The general consensus seems to be that the digitally empowered period we are now moving into, labelled loosely as ‘the future of work’, will undergo as fundamental a transformation as was experienced after the first Industrial Revolution. While robots, automation and millennials continue to grab the headlines, there is a fundamental shift in the very nature and structure of the world of work – a shift that business leaders and policy makers need to address before they get left behind. So what does the ‘future of work’ really mean for those leading organisations today? Making sense of ‘the future of work’ Early adopters point to the need for organisations to be more strategically responsive and adaptable, more organisationally agile and also more comfortable in dealing with constant change. Organisations need to be responsive to fundamental changes in how work can now be delivered and organised, and to the emergence of a new employee and a multi-generational workforce with different (and sometimes not-so-different) expectations regarding work and the workplace. The ability to sense and respond to these challenges will be essential for long-term success. Commonly quoted essentials such as embracing new technology, dealing with continuous change and managing diversity are now accepted as ‘business as usual’ realities rather than anything new. But what should leaders do in the short-term to prepare for this new environment? 1. Set the right strategy Given the wide range of topics, from artificial intelligence and digital technology to gig working and the changing workforce, it can be hard to make sense of the challenges and opportunities at an organisational level. Filtering all the hype from the real and material issues for your own situation is an important first step. To assist in that process, we use a scenario planning tool called SCOPE (Figure 1), which guides leaders through the main considerations specific to them and their business. Different organisational scenarios are tested for the future, from incremental change to major disruption. Standing back to consider key themes – from strategic flexibility to how the organisation’s culture, structure and processes are aligned and the type of workforce it needs for the future – this quick diagnostic helps executives explore the key questions and likely scenarios to help them get a handle on how their business is strategically placed for the future of work. Organisational agility, for example, is a common theme that emerges from any review of strategy in the context of the future of work. Agility is well-established as a critical organisational competency that has helped organisations adapt to complex and rapidly changing business environments. For high-profile cases, just look at what Netflix and Amazon have done with their business models over the last 10 years. The compelling argument is that if business leaders can improve an organisation’s agility and build it into the organisational culture, structure and processes, they will have gone a long way in preparing their organisation for future challenges and opportunities. 2. Evolve your leadership style It may sound obvious, but reflecting on the role and appropriate approach of leaders is also critical in helping the wider organisation thrive in the future of work. Writers such as Lurie and Fisk suggest that the digital economy requires a new kind of leader from before – one who can lead people in a direction that involves an increasingly diverse set of customers, employees and stakeholders. The outlook of digital leaders must also reflect the characteristics of their business environment (i.e. open, fast-paced, connected, non-linear, virtual and technology enabled). These writers and others contend, for example, that organisational leaders must develop agility as a core leadership capability so that they can respond effectively and calmly to the uncertainty and ambiguity of the modern marketplace. As Martin Goldsmith, author of What Got You Here Won’t Get You There, puts it: “Leadership agility is probably the most important competency for leaders to have in today’s rapidly changing world”. But what is an agile leader? Most models of leadership and leadership development today point to a shift in emphasis from traditional ‘command-and-control’ leadership styles to more transformational, ‘servant-based’ and agile leadership approaches.  In their book, Leadership Agility, William Joiner and Stephen Josephs define the natural and progressive development stages of the ‘agile leader’. From the traditional, tactical and problem-solving orientation of the “expert leader” to the more strategic and outcome-oriented “achiever leader” and then the more visionary and facilitative/empowering “catalyst leader”, Joiner and Josephs describe the practical skills of progressively leading in a more agile way. This helps to call out typical leadership development stages through the lens and language of modern agile principles and practices. Self-awareness and clarity of language and behaviour is helpful for any organisation seeking to be more deliberate and mindful in developing such skills and the working culture associated with organisational agility.   These future of work nuances required for leadership today, combined with what we already know about the more age-old and enduring qualities of simply being a good leader of people, will help leaders thrive in the new landscape and will also allow others in their care to do the same. 3. Build your best team  Armed with a sense of the strategic direction required to face the future of work and being aware of the leadership approach required, leaders should also look at who they hire, promote and keep within their future organisation. No leader can succeed alone, so having the right talent at all levels is a critical theme for leaders as their organisations evolve and grow. New business and organisation models challenge many of our assumptions regarding traditional talent strategy and HR management. Many aspects of talent management will themselves require disruption and new thinking. For example, if an organisation is to be re-configured to take advantage of the business and cost benefits of a ‘blended’ mix of suppliers, outsourcing partners, free agents, automation and a core, full-time workforce, it follows that a new work design and workforce planning strategy will be needed to map out the organisation’s short-term and long-term talent needs. Indeed, the management of the non-core workforce will become a highly strategic function and consideration must be given to how the different parts of the organisation will work together to deliver optimum service to the customer. Once the work design and workforce planning aspects are worked through, the rest of the talent life-cycle processes need to kick in and align. For example, recruiting for the right skills also needs to account for likely and possible changes in skills requirements further down the line. Therefore, attracting people with the right attitude and a learning mindset could arguably be as important as their immediate skills. Training and development will need to be continuous and provided through a mix of mobile, online, on-the-job and formal methods that align with changing business needs as well as the different learning styles of a modern workforce on the move. Rewards will be more flexed and individual, with a “consumer standard” employment experience demanded by different generations of employees. Even how we exit employees is changing, with employers seeing their alumni network as a talent pool for the future as well as important social advocates for their organisation when they leave. Meanwhile, the physical (and virtual) workplace is changing to accommodate new ways of engaging staff working and collaboration. Central to this new talent management story is a clear picture of what the organisation’s desired culture must be. There is a risk that some employers will promise the earth to attract sought-after employees only to find that they cannot deliver on their promises as new work models and skill requirements change the employment prospects of employees and their jobs over time. These new talent management realities will present both challenges and opportunities. We therefore need to re-think what we demand from our leaders and front-line managers, and what qualities they need to succeed. These qualities are possibly quite different to what organisations have hired and trained for in the past. Where do we go from here? We may not have all the details about what our organisations will look like tomorrow, but the one thing we can do today is basic scenario planning that considers different prospects for our own organisations ranging from incremental change to radical disruption. We can then set about designing a talent management strategy that puts the right leaders and people in place to deal with the inevitable changes as they continue to emerge and develop. Kevin Empey is Founder of WorkMatters, a consulting firm that helps business leaders prepare for the future of work.