Dr Joanne Murphy has researched the Northern Ireland business community’s experiences in facing the challenges of the Troubles to make life as normal as possible for their customers. It is perhaps timely to listen to their voices and reflect on the crucial role businesspeople play in fostering and maintaining peace. “We had a door in the bar that squeaked, and I used to think that sometime in my life, that door will squeak and my stomach won’t tighten – I’ll not have that fear in me. The first year was just like hell.” These are the words of a publican I interviewed, reflecting on his first years in business at the start of the Troubles. While much has been written about this period, few existing accounts reflect the business community’s experience of living and working through violence. From my research in Northern Ireland, the Basque Country, and Bosnia on how leaders and managers adapt to and function in environments of conflict, I have identified four common characteristics among those who share such experiences: The fear, countered by courage, experienced in running a business against a background of the threat and reality of violence; The ability to continue to make decisions in the ‘grey zone’ of an environment where a clear good or positive outcome is often not possible; An acute understanding of the political dynamics at play at a community level; and An ability to seize the business opportunities presented by political change and evolution. Fear and courage It is easy to forget that in violent environments, experiences are visceral. An experience repeatedly shared by business owners I have interviewed is one of living with fear and the need for the courage to confront it. In the case of Northern Ireland, many have described how the disruption and street violence of the civil rights period quickly descended into the chaos of full-blown conflict and its impact on what had been a stable, albeit divided, business environment. A pharmacist with a business at the centre of a market town described the early years of protest and trouble: “When the demonstrations and counter-demonstrations started, we would have had to lock the doors because there were fights bouncing off the windows. It progressed on to the bombing and incendiaries.” As the conflict progressed and periods of violence became more intense, low levels of intimidation sometimes became active threats. The same pharmacist recalled frightening days in 1981: “During the hunger strikes, we got a slip of paper through our letterbox saying ‘When Bobby Sands dies, you close for the funeral’… but we didn’t close and there were three of them that came in about 9.30am. I knew one of them… ‘You’re not closed?’, they said, and I said ‘No’. And they said ‘Are you going to close?’, and I said ‘I’m not. I prayed for Bobby Sands at mass this morning. I prayed for his family. I don’t think he should have taken his own life’. So then, they went out, and about ten minutes later, the phone rang. ‘If you’re not closed in half an hour, you’ll be dead.’ I sent the two staff home – there weren’t many customers about, but I did the rest of the day myself. And I can assure you that every time the door opened…” With towns and cities encircled by barriers and security forces, the economic impact was devastating. Interviewees talked about losing half their business when towns were gated to protect them from bomb attacks, deterring casual shoppers. Even with this difficulty, there were consistent attempts to stay positive and open for business. A shop owner reflected: “The way I looked at it, you had to think of the people that took the trouble to come to you”. Undoubtedly, there was a personal impact on people’s peace of mind and mental health. One business owner reflected on a particularly difficult period. “There were times you would drive into work, the mountains so peaceful above you, and I’d think ‘I’d just love to drive on and walk in those mountains’. I’m a very calm person, but I remember the whole front of the shop was blown out with a bomb, and we had to barricade it up and lock it with a chain and a padlock. One day I couldn’t get it open with the key, and I just kicked it down… not like me at all.” The resilience to persevere through fear and uncertainty was critical. Decision-making in the ‘grey zone’ In his book, The Drowned and the Saved, Italian industrial chemist and Holocaust survivor Primo Levi wrote about the moral ambiguity of being trapped in an environment of terror, the ‘grey zone’, where moral compromises persist and perfect outcomes are not possible. In such situations, business owners struggle to manage relationships when trust is in short supply and there is acute anxiety about outcomes and the consequences of action. One commented on the struggle to find a middle way: “I didn’t trust the cops, and I didn’t trust the paramilitaries”. Many of those I interviewed spoke about making choices to establish acceptable behaviour norms to mitigate a volatile environment’s worst aspects. For example, a publican described taking a stand about bad language in his bar, despite being personally threatened. The difficulty of such decisions should not be underestimated, and many interviewees were open about the dread such choices entailed. They were also clear about the compromises made to be able to trade successfully. The employment of doormen, for example, could put bar and club owners into morally invidious positions. One observed that while such dilemmas had eased as the peace process developed, doing business still involved engaging with paramilitary elements in local communities. He described how demands from paramilitaries had changed from “You need to employ such and such” to a more conciliatory “If you’re employing doormen, will you employ these doormen and it’ll be completely legit, and you tell them what your rules are, and how you would like to run it?” He concluded: “Most things would work out okay”.  One of the factors that facilitated a move away from engagement with paramilitary elements was a high level of political and community knowledge among business leaders. Initiatives like sponsorship of local sports and youth clubs helped embed relationships in the community and allowed business owners to leverage a wide range of connections, providing a protective mechanism against organised paramilitarism. The grey zone was particularly extended for the business community during prolonged periods of heightened tension, such as the 1974 Ulster Workers’ Council strike when many businesses were either forced to close or closed voluntarily in protest at the Sunningdale Agreement. “During the Ulster Workers’ strike, we dealt with it in a very Irish way. We closed the front door and opened the back.” Such compromises, however, often obscured the very firm line businesspeople drew in the sand. “For anyone who has shown weakness, that’s the road to ruin. And anyone I’ve known who has joined in – let paramilitaries put machines in, laundered money, et cetera – it’s ended in a very bad way.” Understanding the political realities When asked about the knowledge and behaviours necessary to survive and thrive in a politically volatile and violent situation, one businessman observed, “You need to understand the environment very well, and the bad and difficult bits of it. I’ve been involved in low-level mediation, trying to do things behind the scenes, you know, when workers are being intimidated. If someone’s getting hassle, I would try to help because I know people. Knowing people is very important.” One common challenge was discrimination based on community background, religious belief, or political opinion. While much has been written about such discrimination in employment terms, respondents were often keen to relay their experiences of similar dynamics affecting the sale of property and the procurement of services. The boycotting of shops would intensify at times of political tension: the Ulster Workers’ Council strike, the hunger strikes, the Anglo-Irish Agreement and the Drumcree protests were all identified as difficult periods. Many were sanguine about the reality of the underlying community division that resulted in people choosing to do business or give their business to a rival based on community identity. One rural business owner noted the difficulties in buying and selling property, comparing it with the experience of racial segregation in the United States. “I remember being the highest bidder a couple of times on unionist property and it being withdrawn from sale and finding out later it had been sold. But I can understand that because those people had to live in the community. It’s not easy… but if they sell to me, they could be in trouble with their own people. You have to be at peace with your own community. Those who step outside that are very brave people.” Seizing the opportunities of change In 1994, the Confederation of British Industry (CBI) published Peace: A Challenging New Era, which became widely known as the ‘Peace Dividend paper’. It argued that a viable peace process would help spur economic growth, which would help promote peace. This initiative coincided with strenuous efforts to move to a non-violent environment, including John Hume’s ongoing dialogue to move the IRA away from violence. The CBI emphasised that the vast amounts of money being absorbed by the Troubles could be reinvested in education and infrastructure. At a local level, the business community could also sense change. One respondent, a Belfast-based businessman, recalled seeing the opportunity and changing his business strategy – but then having his expansion plans rejected by local funders, who were unconvinced. The idea of moving into Belfast city centre, previously an economic wasteland, closed and cut off during much of the Troubles, was indeed radical. “I decided to move the business to Belfast. I thought, I’ve got to get into the city centre – that was that. I knew that when I went to the centre of Belfast, people would start to come in.” While local entrepreneurs may have sensed that the environment and business opportunities were shifting, support was not necessarily forthcoming from regional business development agencies. The same businessman recalls visiting one such organisation in search of support after he decided to move his business into Belfast city centre. “I outlined my vision. They told me it was never going to work. It was a very short meeting, and I haven’t forgotten it.” Others reflected on how they sought to build community relations in various ways, including the employment of ex-combatants. Many also believed that they had the opportunity to give something back and benefit the wider community: “My firm’s ethos and culture is about doing some good here. And, if I’m honest, these things often have a very beneficial business upshot.” For many, the business benefits of peace also sit beside a clear commitment to the region and an investment in its stability and sustained progress. When the conversation with one businessman turned to recent violence by dissident republicans, including the murder of journalist Lyra McKee in Derry in 2019, he was unwavering in his view that a deterioration in the security situation would not impact his commitment to Northern Ireland. “If things got worse, I’d work harder. I’m far too invested in the community here to give up. I feel so blessed that I don’t carry any baggage from the past… I’ve not lost anyone or had anyone injured. I’m lucky in that sense.” The journey to a ‘kind of’ peace in Northern Ireland has been long, and not all stories have been told. We are only beginning to understand the impact local enterprise has on stabilising society and building accord, but the experiences of those who worked through difficult times stand as a testament to their resilience and the need to build on progress. Dr Joanne Murphy is Reader in Leadership & Change at the Centre for Leadership, Ethics and Organisation in Queen’s University, Belfast.

A recent C-suite barometer showed a surprising level of optimism among international business leaders. Mark Kennedy deciphers the findings to explain why short-term optimism will need to be buttressed by business transformation plans and long-term investment strategies if organisations are to thrive in a post-pandemic world. A report detailing over 500 global C-suite leaders’ views on their outlook for 2021 during a worldwide pandemic always had the potential to surprise. Despite the current economic uncertainty, the most surprising finding was the consistent presence of optimism globally, with 71% of respondents assessing the outlook for growth in 2021 as positive. At the beginning of the pandemic, we witnessed resilience and consistency as some business sectors adapted reasonably quickly. For established companies, there was a kind of ‘muscle memory’ approach to the crisis that unlocked lessons learned and business continuity measures that were initially adopted following the global economic crisis of 2008. Despite the unique nature of the pandemic, businesses that previously invested in crisis management strategies appeared to exhibit more resilience. The state approach to the pandemic was also a big differentiator, as tax and legislative aid mechanisms created a profoundly different context for business. Countries in Western Europe mostly saw the benefit of this approach. In contrast, other parts of the world, such as Africa, received noticeably less business aid, which resulted in less optimism for the future. Business transformation plans Confidence in managing and mitigating risk during the pandemic was undoubtedly a factor in respondents’ forward-looking business transformation plans. Economic and technology transformation trends scored highly, with 90% expecting to respond to technology and innovation trends and 78% confident in managing upcoming economic trends. Technology transformation was the most likely focus overall for large companies ($1 billion plus), with 54% of executives indicating a more-than-50% chance of implementing technology transformation plans. While the need to digitally transform businesses has been on the agenda for some time, the crisis appears to have accelerated plans. If we take the retail sector as an example, the need to meet the demand for online shopping during lockdown has added an urgency to prioritising digital strategies. Perhaps more surprising than what was high on the list of business transformation plans was what respondents considered a low priority. While the travel ban during lockdown highlighted the vast potential to reduce carbon emissions, only 20% of respondents said they expected climate risk to have the most significant impact on their business: the lowest on the list. This figure is slightly higher among Western Europe companies (25%), suggesting it is higher on executive agendas in that region. However, it is less than 20% in Latin America, Africa, Central and Eastern Europe and the Commonwealth Independent States (CEE/CIS), and the US.  One potential reason for climate risk attracting such a low score is the current lack of bottom-line accountability. Despite the growing need to mitigate climate change risk for business sustainability, leaders often treat it as an intangible business issue. They see it as being driven by regulatory momentum rather than a tangible business goal to be approached in the same way as technology or new service transformation plans. However, climate change will become a matter of profit and loss for many companies over the next ten years, either because it will influence how capital is obtained and the cost of infrastructure, or it will become an opportunity to do more business. It is a similar story with cultural change, which scored equally low on respondents’ business transformation plans. As mandatory reporting on environmental, social, and governance (ESG) issues becomes more widespread in both cases, businesses will need to consider these developments in business transformation plans. What is driving the business agenda? While technological transformation is the overarching theme, how businesses approach plans is often driven by regional and industry factors. In financial services, a high level of regulatory and compliance demands in Western Europe and the US is the driving force for banks and insurance companies launching digital strategies to automate and manage data management and reporting costs. In manufacturing, meanwhile, technology transformation drives improvements in efficiency and productivity. These regional differences were also evident when looking at investment plan timeframes. Businesses in Africa, for example, are looking at short-term transformation plans to drive profitability. In Europe and Asia, investment plans are put in place as strategic building blocks for the next decade and beyond. While this is not surprising when looking at the maturity of business development in each region, it also reflects the lack of state aid available to prop up economies and businesses in times of crisis. A further factor driving the business agenda is confidence in a company’s ability to respond to trends. In general, the barometer shows that businesses are optimistic in their ability to tackle most trends, with 90% either ‘very’ or ‘fairly’ confident in tackling challenges involving technology and innovation. Businesses in Asia-Pacific are more positive in their ability to respond to technology trends than in Western Europe, with 92% confident there compared to 85% in Western Europe, reflecting the vibrancy of the region’s technology start-up scene. However, executives are less confident in their businesses’ ability to respond to some other trends. 28% of companies are ‘not very’ or ‘not at all’ hopeful in dealing with the impact of climate change. This lack of confidence in responding to some trends may be down to the fact that, as discussed earlier, it is positioned lower down on the business transformation priority list. A further worrying response is executives’ lack of confidence to deal with social/political changes and public health challenges. While many businesses expect both trends to impact them in the next three to five years, a quarter of respondents are not confident in their ability to address them. Western European businesses are the least confident in dealing with social/political, climate and public health trends. Less than 65% declared themselves ‘very’ or ‘fairly’ confident for each. Asia-Pacific companies were much more optimistic than their Western European counterparts in responding to public health challenges – 77% of the former looked forward with optimism. This regional difference may reflect Asia-Pacific societies’ longer experience managing epidemics, like the SARS outbreak in 2003. Longer-term investment strategies It is important to recognise that the pandemic’s impact on investment plans is critical in moving from a short-term to longer-term outlook. The change in business priorities and how business is conducted since the crisis started has given CEOs across a wide range of sectors a clearer picture of why making long-term and sustainable investments is a sensible business decision. Interestingly, female respondents were more inclined to opt for longer-term investment strategies. Female leaders represent less than one-third of respondents, but with the number of female business leaders rising, the shift to longer-term investment planning is likely to increase. It signals a much-needed focus on long-term business sustainability. This shift to longer-term sustainability was highlighted by the number of respondents who consider investing in sustainability initiatives to be a relatively long-term business activity. It was rated the fourth longest-term out of 23 activities, behind external growth opportunities, corporate strategy, and research and development (R&D). However, company size and sector had an impact. For manufacturing companies, sustainability initiatives are the longest-term activity of all. This reflects the transition away from fossil fuels and towards more sustainable business models. Sustainability is seen as a long-term activity in the financial services sector, but sourcing new talent, government engagement, R&D, and maintaining IT systems are higher long-term priorities. It is interesting to note that sourcing new talent is seen as a long-term priority, particularly as the financial services sector is in a phase of disruption driven by technology and new entrants. While this may suggest that the industry sees sourcing new talent as increasingly difficult, it may also hint that financial services companies still see themselves as people industries first and foremost. The responses from technology and telecoms companies indicate that sustainability initiatives are viewed as one of the shortest-term activities in those sectors. External growth opportunities and regulatory issues are the two longest-term categories for this group, which considers acquiring customers as a longer-term activity than maintaining customers. It paints a picture of an industry that sees high growth as the key to its long-term and short-term future and one that is less concerned about its physical footprint and managing long-term external risks when compared to other, older industries. Of course, as new EU privacy laws become even more embedded, the technology sector may see regulation as both a short-term and long-term priority. Company size is a further factor. Larger ($1 billion plus) companies are most likely to consider sustainability as a longer-term business activity, reflecting that they have the resources to build a sustainability programme and the more significant external pressure on large and recognisable businesses to address sustainability issues. Executives from small- and medium-sized enterprises (SMEs) still regard sustainability as a relatively long-term activity, but R&D, corporate strategy, and external growth are viewed as higher long-term priorities. Framing a reset strategy What can we learn from the barometer results, and does it help frame strategies as companies look to reset? Looking at differences as well as similarities can give CEOs some bell-weather trends to consider. Take the fact that the barometer portrays businesses as generally optimistic. This helps provide momentum and confidence for the growth outlook, even though executives will consider different growth strategies and action pathways. It is then a question of looking at that growth landscape in more detail, so plans are more robust. Another key takeaway from the barometer is that businesses across the spectrum are prioritising driving technological change in one form or another. This could be implementing technology to transform and improve productivity, reduce costs, capture a business advantage from, say, increased online demand for products and services, or using it to enrich and enhance marketing strategies. Again, it is about capitalising on specific trends within the business sector. One aspect of technological change to keep in focus is the need to mitigate risk. With increasing complexity in the data and privacy regulatory landscape, it is crucial that – similar to technology transformation plans – risk mitigation remains high on CEOs’ agendas.   With the barometer also highlighting a growing appetite for ESG themes, it is essential to keep track of sustainability issues – particularly when reporting. ESG reporting is still not a high enough priority for CEOs, but it will demand greater focus from a risk management perspective in the future. Also not to be overlooked is the opportunity for businesses to create strategic business advantage by becoming an early adopter of, for example, environmentally friendly solutions or applying ESG as a business differentiator. Finally, a more oblique takeaway from the barometer’s high level of business optimism was the importance of investing in resilience. As we saw from government and company reaction at the beginning of the pandemic, lessons of the last economic crisis appeared to have been learned, particularly on the importance of continuity and making businesses more resilient to shocks. There are many examples of companies achieving business continuity success, whether through the ability to add flexibility in the supply chain or rapidly adapt products to meet changing consumer and business needs. It is clear that, where CEOs take the time to fully understand business and regulatory trends and invest in forward-looking strategies such as resilience and sustainability, charting a course out of the crisis will not be driven by short-term optimism alone but a realistic long-term growth strategy. Mark Kennedy is Managing Partner at Mazars in Ireland.

While the pandemic has highlighted the need to keep our IT systems safe from cyberattacks, many forget that our manufacturing sector remains just as vulnerable as finance. Pat Moran lay out five key ways CFOs and COOs can keep their businesses and its operations safe. According to Dragos, industrial cybersecurity experts, the number of publicly recorded ransomware attacks against the global manufacturing sector tripled in 2020. With manufacturing giants like Westrock, Foxconn, Honda and Norsk Hydro among those reporting attacks, it is clear that accountants and others leading in this sector need to protect themselves. Adopting defence-in-depth security strategies and having effective preventative, detective and corrective controls is critical for reducing risk. High-risk entry points The most common entry points for ransomware attacks are:   spear-phishing, which targets specific users; remote workers; and  exploiting software vulnerabilities and enterprise network equipment. As companies move towards smart manufacturing processes, care needs to be taken with adopting Wi-Fi enabled industrial devices and tools. If these devices are connected to corporate networks or other networks and are not protected adequately, they can become network access points by a cyber attacker. Attackers use these techniques to gain a foothold on the corporate IT system and then attempt to disrupt the IT environment and manufacturing operations. Reducing the risk There are five things the Chief Financial and Chief Operational Officers can do to ensure their systems are not susceptible to a ransomware attack. Vulnerability management Perform vulnerability assessments on critical control systems to identify and remediate any software security issues. Implement proper access control To reduce the impact of ransomware attacks, it is critical to have proper segmentation between the IT and the operational technology (OT) network. Regularly conduct architecture reviews to identify all assets, connections, and communications between IT and OT networks. Gain deeper visibility As manufacturing operations become increasingly connected, gaining good visibility of assets, processes and external connections are vital. Companies should monitor outbound network connections from OT networks to detect any malicious threat behaviours. Secure your remote connections Due to the global pandemic, businesses were forced to rely on remote access to manage critical infrastructure. Organisations need to secure any remote access to these systems to reduce the risk of cyber-attack. One way to do this is to create barriers such as a virtual private network.  Backups and incident response The best defence against ransomware is to have robust and well-tested backups. Organisations can quickly recover if they have good backup and restoration policy and procedures in place. They should maintain recent backups online and offline to ensure organisations can restore their system correctly.  It is also essential for organisations to have a comprehensive and well-tested incident response plan to respond to cyber threats. It must be designed with OT concerns in mind.  Pat Moran is the Cyber Leader at PwC.

When it comes to clients and staff, their expectations of accounting firms have changed. One way to approach this change and meet stakeholder needs is to consider a merger, says Mark Butler. Consolidation of smaller accounting practices in Ireland has not kept pace with comparable firms in the UK, where merger transactions have driven significant growth in recent years. While market size is one reason for this, in Ireland, as elsewhere, firms are shifting from a compliance to an advisory model and discovering that without scale, it is impossible to meet client expectations across multiple service lines and sectors. At the same time, staff expectations have shifted as employees seek more flexibility about where and when they work. To keep pace with these changes, it is much easier for accounting firms to join forces than to go it alone. Planning to merge When discussing mergers with clients, most accountants will say that waiting until you are approaching the end of your career could mean you won’t have enough time to find a suitable merger partner. The same holds true when planning accounting firm mergers. To maximise value – and potentially share in the greater profits of a larger firm – the earlier you plan a merger, the better. Due diligence When conducting due diligence, client base compatibility – fee expectations, sectors, and risk – needs to be assessed. Team compatibility, salary scales, and charge-out rates also need to be considered. Debtors need to be collected by the firm which is being merged in, and you must deal with work in progress. Companies must carefully manage cashflow from the outset. Whether you are on the buy or sell side, it is advisable to engage an advisor to negotiate on your behalf. Moving forward In terms of branding, merged practices should move forward under a single, unified identity. Once a merger is agreed upon, it is essential to explain the advantages to clients. Ideally, this should be done in person before the transaction takes place. Post-transaction, clients should be introduced to new team members at the earliest opportunity. This helps alleviate client uncertainty. The last few years have brought an unprecedented change in our profession, with new technologies driving the commoditisation of compliance services and impacting the audit process. This transformation will continue. At the same time, new opportunities are opening for practices with the capacity to invest in technology on an ongoing basis, build international connections, and position themselves to provide advisory services across an increasingly broad spectrum of specialisms. In my view, consolidation will be the key that unlocks these opportunities for Irish accounting firms. Mark Butler is the Managing Partner of HLB Sheehan Quinn.

With the end of the pandemic in sight, organisations need to find new ways of managing staff. Patrick Gallen suggests new priorities to ensure organisations get their people management right. Many organisations are currently reflecting on their people challenges and opportunities coming out of the pandemic and how the new world of work will look as they transition to a hybrid remote working model of some sort. What should be the top priorities for Chief People Officers and HR departments when planning for the phase of work? Build critical skills As you would expect, building critical skills and competencies is number one on the list, particularly as organisations are now starting to identify some of those skills gaps arising during the pandemic and the vast plethora of digital skills required going forward. In a recent survey, building critical skills and competencies was a top priority for around 68% of the HR leaders. The challenge for them and those who work in learning and development in organisations is that it is difficult to ascertain the current skills gaps as things are changing so quickly. Organisational design Organisational design and change management are second on the list. It addresses the fundamental questions: are our current structure, lines of reporting and functional areas of responsibility reflective of the new world of work? Are they 'fit-for-purpose? If not, how do we make a change while still maintaining business as usual? Change management and helping organisations to deal with that change has always been an important area for organisations as they grow and evolve, but as we often see in practice, managers and leaders aren't equipped to lead change, and they often over-manage and under-lead. This is exacerbated by employees who are fatigued from all the change. Leadership Current and future leadership bench is number three. In practice, I see the demand for a new cadre of digital leaders across organisations, who are agile, can lead distributed teams with a focus on outputs and understand the importance of empowerment. The future of work The future of work and employee experience is at number four, and here, the key challenge is around enhancing and protecting the organisation's culture in this new world of work. For years, work design focused on efficiency and has left many organisations with rigid structures, workflows, outdated job roles and networks that don't meet today's needs or flex with fast-changing conditions, like we see today. Health and wellbeing Finally, number five is the workforce's health and wellbeing, which includes mental health and resilience. With a remote workforce, it is often difficult to ascertain how people are feeling. We now know from our experience that isolation and loneliness can be one of many challenges coming out of the pandemic. This is a period of unprecedented change and an exciting opportunity to shape the future of work. As Jack Welch said: "If the rate of external change is greater than the rate of internal change, disaster is imminent". Doing nothing is not an option. Patrick Gallen is Partner in People and Change Consulting at Grant Thornton.

While diversity and inclusion have become commonplace, much needs to be done to embed them in organisations. Andrea Dermody gives us five steps on how you can implement it effectively on a day-to-day basis. The term ‘diversity and inclusion’ (D&I) is becoming more commonplace. People are familiar with the concept of diversity, but what does inclusion mean? Inclusion is when people feel included, treated fairly and respectfully, in a culture where they are valued and have a sense of belonging. According to research in Juliet Bourke’s report, Which Two Heads Are Better Than One? How Diverse Teams Create Breakthrough Ideas and Make Smarter Decisions, inclusive organisations are six times more likely to be innovative and agile and eight times more likely to achieve better business outcomes. So why does inclusion continue to be an afterthought to diversity? What are the practical things you can do to build an inclusive culture in your team and organisation? Define – Create a definition of inclusion that works for your organisation. What makes you and your colleagues feel included at work? Then, understand that inclusion is not just a two-line definition. You need to clearly state what every day behaviours ensure your people will feel included, such as: being actively listened to and understood; being treated fairly and with respect; actively included in discussions; feeling like ideas and opinions are valued; having teams that work together to achieve results; witnessing managers develop colleagues equally; and having managers actively resolve team conflict. Develop – Build up your managers and colleagues to understand inclusion by incorporating the definition and behaviours into your existing learning and development. Some may already behave inclusively, but if you really want to address how people are treated in your organisation, you need to influence everyone’s behaviour every day, and make this behaviour deliberate and conscious. Champion – Promote a clear ‘tone from the top’ around diversity and inclusion, ensuring that leaders understand the value of, and are committed to, delivering inclusion. Diversity without inclusion does not drive the full benefit to the organisation – hiring underrepresented talent without an inclusive environment in which to share their expertise and thrive is a waste of time. Measure – Figure out how to measure success. Does your employee survey ask about the behaviours you have identified as inclusive? If you don’t have this information now, build it into future surveys. In the meantime, run focus groups and gauge how people feel they are treated at work, ask them what makes them feel included and then action your findings. Reward – Use your employee survey, 360 feedback, performance reviews and focus groups to measure whether leaders are effectively building inclusion into their teams, and then reward and promote accordingly. People will see that you are rewarding inclusive behaviour and actions. This highlights positive role models in the organisation and creates a path for progression which requires an inclusive style. These five steps at an organisation or team level will lead to: individuals who are more engaged and have greater intent to stay; colleagues who are willing to speak up when they see something wrong because they are listened to, which helps you identify risks and health and safety issues early; teams that are innovative because they listen to each other respectfully and understand the value of difference, leading to better co-operation; managers who are more productive and fulfilled because they know they are treating their teams fairly and creating an environment where individuals can thrive; and leaders who inspire trust, commitment and loyalty in their people because they take the time to understand and value them as individuals. Andrea Dermody is a diversity and inclusion consultant, speaker and coach at Dermody.

We all know that gender diversity is great for business. But how can organisations implement it in a meaningful way? Susan Dwyer details three main stumbling blocks faced by women in the workplace, and how they can be overcome. Gender diversity is vital to any workplace. Not just because it is a praiseworthy goal but because it makes absolute business sense. While most organisations have good intentions in this regard, a lot of them are struggling to act and are not getting the results required to create any change. Based on my six years in recruitment, I have found that there are three key factors holding women and gender equality back in the workplace. 1. Lack of role models “You cannot be what you cannot see.” There is a lot of research to show that female mentors are key influences on women’s success. Senior women demonstrate that it is possible to reach the top of an organisation, and that the business values the talent and contributions of women. The presence of women in leadership positions and the opportunity to network with them is imperative in helping advance women in their careers. Without role models, it can be a very lonely journey. It makes navigating your career so much more difficult than it needs to be. We must come together, no matter our gender, to make sure we are doing our part to make changes to ensure all voices are being heard. 2. Corporate culture Corporate culture is seen as one of the biggest barriers to female leadership. This is partly a legacy issue. Many company structures were originally created to suit the lifestyles of men at a time when women made up a smaller portion of the workforce. Many of organisations are now failing to make changes to modernise the way we work.  Organisations must start looking closely at their underlying beliefs about gender. Does management encourage people to talk about gender at work? How does the organisation define and reward good leadership? One of the main reasons companies are losing out on good female talent is because the culture isn't right and it needs to be addressed.  3. Unconscious bias Unconscious bias is very much alive. Bias can creep in at every level of the recruitment process, from the make-up of a selection panel to the timing of an interview. At first, these actions seem innocent, but we know they have a direct impact on diversity. We know that interviewers are more likely to question women on their ability to balance work and family life rather than men. We know that a woman’s commitment to the job is also often called into question. Job specifications can also be a problem. We know women won’t put themselves forward for a role if they don’t meet each and every entry criteria – unlike men. Companies writing these long and over-complicated job specifications are turning women off from applying. If companies wish to attract more female talent, they need to rethink how they write their job descriptions. Making change Change is most definitely possible, and I’m feeling optimistic about it. Kamala Harris, the first woman in history – and a woman of colour – has become the Vice President of the United States. It was a ground-breaking moment, not just for women in America, but for women everywhere. If she can manage to break down the gigantic barriers facing her, then why can’t we all? With increased awareness, these challenges can be overcome, but it must be a joint effort. Everyone of all genders must commit to making small changes to create transformation. Susan Dwyer is the Founder of Rise Up Women.

While much progress in gender equality and diversity and inclusion has been made in recent years, the impacts of COVID-19 threaten to undo all that hard work. Mark Fenton explains. As we experience our restricted lifestyle due to the pandemic, I have been reflecting on what impact this crisis is having on gender equality and diversity and inclusion (D&I). And I am worried. Will our new, abnormal future be an optimistic beacon of progressive inclusion and equal representation, or does it risk taking us back to a more traditional and less inclusive past? The world is not equal for men and women. We know that. Huge disparities exist around the world, not just in terms of workplace remuneration and working conditions, but also across access to professional development, sponsorship, and even basic education. Nevertheless, in many countries, significant progress has been made. In the UK, for example, a record number of women are in the workplace – 72.4% at the end of 2019. Furthermore, The Financial Times reported in October 2019 that the proportion of women on the boards of the UK’s most valuable 350 public companies exceeded 30% for the first time, having risen more than three-fold since 2010. Both men and women have had to organise their lives to support dual career families. Most organisations have made at least some progress towards supportive technology, policies, benefits and practices that enable more flexible models to ensure that every employee can be more effective and feel more included. A growing suite of empirical, global research now shows that this corporate strategy of D&I leads to significant, measurable impact on gender equality and on bottom-line performance. McKinsey recently reported on a global analysis of over 1,000 large companies which demonstrated that those companies with the most gender diversity are 48% more likely to have above-average profitability as compared to the least gender diverse organisations. In recent years, society has embraced a professional outsourcing model when it comes to the traditional support roles of childcare, cleaning, food preparation and socialisation. This has freed up many of us to pursue the career and life we desire. This new social model has been lauded as the non-level ground-breaking progress towards a more equal workplace and society at large. Then COVID-19 appeared, and everything changed. We live in a new reality of global home-working, social distancing and cocooning. The outsource model is gone – schools and crèches have been shut for months on end and are only now slowly opening up. Restaurants and bars remain boarded up and we are back to a time of self-sufficiency vis-à-vis home schooling, house cleaning, food preparation and general maintenance. With all these extra tasks, how has society divvied them up? Have we, as self-professed progressive supporters of equality, rationally and fairly allocated the day-to-day running of our home, our family, and our careers? Has the shift towards remote working and the full-armed embrace of tools such as Zoom, Microsoft Teams, etc., delivered the expected growth in support of women and gender equality in general? The answer may depend on who you ask. And the reality should disturb you. There is evidence that society may have taken steps back to a more gender stereotyped and genderised division of labour. Many people report that it is women who are doing most (if not all) of the home-schooling activity, while continuing to do the lion’s share of cooking, cleaning, and the organisation of virtual socialising. This is often while attempting to succeed in a busy corporate role based at the kitchen table. Us men, on the other hand, have replaced our 8-10 hours in the office with a similar duration on Zoom calls based in the more bespoke environment of the attic office or study. We start early (before the home-schooling day begins) and surface for breaks and mealtimes, or perhaps a fun family activity in the late afternoon/early evening. Yes, it is hard to do our jobs via Zoom, but men have the benefit of supportive practices at home. Some, maybe even many, may disagree. An interesting article in the New York Times exposed the gap in pandemic-era domestic work. It was reported that while nearly half of men say they do most of the home schooling, only 3% of women agree. Furthermore, a third of men with children under 12-years-old claimed to be the person most responsible for housework or for childcare, while women agreeing with either statement did not even register above 2%. Why? Cultural expectations around roles and responsibilities remain and this crisis, by putting a short-term focus on securing/maintaining income and work opportunities, has allowed these expectations and implicit biases to flourish as women default to juggling – more than ever – schooling and household activity. We need to address this disparity quickly to avoid taking backward steps in the long journey towards gender equality and a more inclusive society. What this crisis has taught us is that we need to better collaborate as a society and be more inclusive and supportive. We need to value all the micro-actions that were easily discounted or outsourced before, but which are now viewed as important. Men must continue the spring forward they started and not step back from their modern role in family, work and society. The future is in our hands. We can emerge as a more connected, equal, and respectful society. Our difference is our strength. How we include these differences and each as a unit (a relationship, a family, a community, a society, a global world) is key to future success, whether individual, corporate or industrial. Mark Fenton is the Founder of MASF Consulting

While the Common Travel Area between Ireland and the UK has been preserved post-Brexit, businesses still need to be compliant when it comes to work and travel permission requirements for employees, says Doone O'Doherty. Now that the UK has officially left the EU, many employers have started to see travel and work restrictions apply to certain employees who, before Brexit, could have travelled and worked freely within the EU. Employers need to ensure compliance for their employees and indeed for their own organisations. Ireland is in a somewhat unique position insofar as the free movement of UK and Irish nationals between both countries has been retained under the Common Travel Area agreement. There may be an assumption that Brexit really has no immediate impact on the people agenda for Irish employers and, for many organisations, this is the case. For others, however, particularly those with UK or EU national employees, Brexit throws up a completely new conundrum, with concerns over immigration and global mobility becoming something that employers may need to navigate, often for the first time.  Work permission required   The bottom line is that, since 1 January, freedom of movement of UK and EU nationals between the UK and the rest of the EU has ended. If you have either UK national employees who need to travel to another EU member state, or EU national employees who need to travel to the UK, these individuals are now subject to potential work permission requirements. There may also be restrictions and time limits on the activities they can carry out as business travellers. Where once a UK national could simply move to another EU member state at short notice, and vice versa, attention and planning now need to be given to such travel arrangements. Not only does consideration need to be given to any new movement of people, EU nationals already resident in the UK will have needed to secure their right to live in the UK under the EU Settlement Scheme. Similarly, UK nationals resident in the EU will need to secure their status and regularise their position under the specific rules for that country. Thorough review needed  Businesses need to undertake a thorough review of their workforce and identify any frequent business travellers or those who are likely to be affected by immigration restrictions. This includes building potential immigration requirements and robust pre-travel processes into their Global Mobility Policies. Communicating with employees is also important to make them aware of any new pre-travel requirements or steps to secure settlement that they may need to undertake. Consider the potential cost impact of obtaining necessary immigration clearance. There are two aspects to consider: social security and the application of Irish PAYE rules to short-term business travellers. Social security  The Social Welfare Order 2020 came into effect on 1 January 2021. Its purpose is to ensure that the social security rights and entitlements of Irish and UK citizens under the Common Travel Area arrangements are maintained post-Brexit and that social security need only be paid in one jurisdiction. One key aspect is that it applies to Irish or UK citizens only, who may work in either one or both territories. Thankfully, supplementary provisions were included in a new protocol to the Trade and Cooperation Agreement on Social Security Coordination to ensure that EU or UK citizens who move between Member States will continue to be liable to pay social security contributions in one State at a time. Special provision is made for ‘commuters’, which provides that such individuals may be retained within their home country social security system. This is particularly welcome in the case of EU citizens living in the UK who commute or are posted to Ireland to work and who would not have been able to avail of the Social Security provisions above. Employers need to understand where their people work, their citizenship status and how to make the appropriate applications under the revised rules to the relevant social security authority. Irish PAYE and short-term business travellers  There is no change to the underlying tax rules in Ireland because of Brexit. However, there is likely to be increased short-term business travel between Ireland and the UK, largely due to our geographic proximity and the fact Ireland is the only English-speaking member of the EU.   One myth that often exists is the belief that, provided an individual spends less than 183 days in Ireland, there are no tax implications for their UK employer. This is far from the truth – Ireland has a comprehensive set of rules applicable to short-term business travellers/visitors (STBV) that can easily give rise to an obligation to operate Irish PAYE based on an individuals’ Irish workdays. Equally, it is possible to avail of some concessions in respect of STBVs whereby Irish PAYE does not need to be applied, but only if the appropriate due diligence is undertaken.  UK employers need to understand the travel patterns of their staff, the nature of the duties they are undertaking and the intended duration of those activities. Advice should be sought regarding the potential Irish PAYE (payroll withholding obligations) and whether there is a way to mitigate that obligation. Furthermore, the employer should implement a robust system of tracking an employee’s Irish workdays in order to mitigate any potential breaches. Doone O'Doherty is a Partner in People & Organisation at PwC.

In the past year, the way we do business has drastically changed – transitioning from face-to-face to virtual. With work practices moving online, what can businesses do to attract and retain clients? Mary Cloonan has the answers. In the last year, accounting firms have responded quickly to working remotely. Partners are zooming like never before. However, it’s also important to consider how new work can be developed in this virtual world. When we consider our tactics, the most important place to start is to view the world from our target audiences’ perspective. Right now, it’s a virtual perspective. Potential clients are looking for you online before they are doing anything else. Try this: clear your cache and search on Google for your name, your firm name and any other search terms you think your audience might use. Is your firm’s website, LinkedIn profile, social media accounts, etc., on the first page of results? The latest research from the US indicates that business to business buyers must see your message nine times before engaging with it, so it’s essential to make sure your name is prominently placed. If you want to continue to build your client base during this pandemic, there are a few steps you need to take. The ideal client Consider your preferred client in detail. They must be central to every business development action. Website development Your firm’s website is the cornerstone of your presence in the marketplace. It needs to be excellent; the quality of firm sites has increased in the last year and yours should be no exception. Think mobile-first, well-written brief content with visuals. This is critical to get right before activating your presence in the market. Don’t forget existing clients It’s important to stay in contact with the people who already rely on your services to retain and grow your business. Spruce up your LinkedIn profile Similar to your website, your LinkedIn profile is your professional persona. Make sure you are using it to the best of its ability to build your connections and stay in touch. Create an environment where you are easy to reach. Networking Since we are in a virtual world, this means virtual networking. Use LinkedIn to engage  with others, their posts, etc. Join in on Zoom events and expand your network. Post content on social media Encourage your team to write engaging and informative articles and blog posts to link back to your website. LinkedIn and other social media drive traffic to your site – sometimes up to 50% of all traffic comes from your social accounts. Pay attention to visuals and video Posts on social media must have high-quality visuals – ideally short but informative videos. Online video creator software is inexpensive and powerful. Be open to creating content for third-parties Seek opportunities with chambers, associations, town or regional groups online to provide educational content and insights to get your name out there. Run quick polls or surveys Running polls and surveys on your site are great ways to target a specific sector. Include specific questions to create great content for press and social media. Don’t forget SEO SEO is complex. It assesses site speed, design for mobile, content, Google reviews, external links, frequency of site updates, visits, average time readers stay on the site, structure, etc. If you want to be found online, work with experts to get SEO right. Use Google’s tools Google mapping and Google My Business Reviews are both important for your reader and SEO. Use both frequently. Google news alerts are useful for finding specific content that you could then share on social media or send to contacts. Understand Pay Per Click (PPC) Many firms have great success with pay-per-click advertising. Get external expertise if you’re going to go this route: it’s inexpensive and effective, but only if done well. Partner up Talk to non-competing peers about doing something jointly, be it webinars, podcasts, referrals, etc. You are now using the network of two people rather than just one. Publish a regular eZine Create a newsletter to go out to your clients and people who have expressed interest in your services. It’s a great way of keeping in contact regularly while promoting your business. Don’t forget about the phone Although our world is virtual, don’t forget to pick up the phone and chat with your clients and prospects. Having a good conversation is a great way to build rapport. Plan and repeat Ensure you are consistent in voice and timing. I see large and small firms start very enthusiastically, but only those who maintain focused will reap rewards. Most importantly, take some action, however small. Steps taken regularly and consistently is key to success. Remember, we are all in the same virtual storm, but in different boats. You don’t have to be an expert in any of the above, but it is essential to know what you don’t know and get short-term help to energise your firm. The core principle of people doing business with people they know, like and trust is still the same: they just need to remember you above anyone else in the virtual world.  Mary Cloonan is the founder of Marketing Clever.

Despite being seen as a back-office function, the payroll function has been strong through the pandemic. Therefore, it is paramount to consider your payroll's well-being during this extended lockdown. Bróna Grogan tells us how. With the onset of COVID-19, the payroll function has been pushed into the spotlight at a pace of overwhelming change. Before this, payroll was taken for granted – considered a back-office function. As we continue to navigate through various levels of lockdown, payroll leaders need to remain alert to their team’s needs and expectations, particularly their emotional and mental well-being, morale and motivation. It is not yet known what the economic, health, societal and environmental impact of COVID-19 will be long term, only that the disruption caused by the pandemic is devastating. Bearing in mind that the payroll community thrives on structure, standard operating processes and procedures, team collaboration and ongoing support, the steps outlined below should provide some guidance on supporting our essential workers during the lockdown. Check-in with payroll managers Managing a payroll team onsite is vastly different to managing a virtual one. Open up communications with payroll managers to ensure they have the technological, social and psychological supports and training to enable them to manage their teams. Coaching and mentoring Never before has it been more important to create a safe psychological space for team members to reach out if they are going through a difficult time. It is imperative a coaching and mentoring environment is fostered for the team when they need it. Conflict resolution Without the luxury of proximity to work through potential client and peer conflict, seek a commitment that issues won’t fester and agree on a virtual process for conflict resolution by appointing an escalation team where necessary. Cultivate trust and intimacy In the absence of face-to-face and “water cooler” conversations, establish a contract with your team about how you will communicate – how often, what time and what medium to be used. Create a daily ‘huddle’ for all team members to check in with each other. Payroll deadlines offer little room for casual chats, so consider introducing some sort of informality to help people relax and connect at a deeper level. Expect the unexpected With the vaccination rollout programme underway, it is expected this current pandemic will resolve itself soon, but we can be assured it’s not the last time that we will be exposed to unexpected events. Therefore, build some time into your schedule to consider “what if” scenarios to ensure you have factored in a contingency in terms of payroll service continuity. Keep technology simple Regularly ensure that all team members have the required access to perform their roles and that it is a straightforward process to log on to virtual servers. Implement clear escalation procedures in the event a team member is having IT issues. Lead by example Use the same tools as your payroll team and maintain a presence despite being remote. Be accessible and available to your payroll managers and team, actively listening to their concerns when needed. Considering the needs of a payroller, adopt a business-as-usual stance, but be honest with your team about any potential concerns. Roles and responsibilities With the transition to remote working, perhaps roles have been modified in some way. Re-define those with your team so that there are clear expectations around deliverables mitigating any role ambiguity. Virtual working with dispersed teams is likely here to stay, so finding ways to work effectively while channelling the collective energy of your payroll team is critical to individual and organisational success. Bróna Grogan is and Executive Coach and the Group COO at Payment Plus.

With spring just around the corner and vaccinations on the rise, everything seems more hopeful. Now is the time to reinvigorate your team and get them to engage in their work in a meaningful way, says Anna O’Flanagan. We’ve made it through a long winter, and while it may not feel like it yet, spring is just around the corner. Some team members may be coming out of hibernation and engaging more. Others have perhaps fallen off the radar altogether. This third lockdown has been rough, so people will be reacting differently as we ease out of it over the next few months. Regardless of where your team members land, in order to bring the whole team together, leaders will need to encourage engagement over the next few months. According to The Progress Principle, which promotes creating meaning in our everyday work lives, we need to find ways of working that foster progress while also improving our work life on a daily basis. Strangely, these two things are not mutually exclusive. Creating meaningful work So, how do we create work that has meaning? Set goals and KPIs Setting clear goals and having ways to measure and mark milestones is an excellent place to start. This will help your team to understand the ‘why’ of their work. They will start to recognise the benefits of the work being achieved and will become fully aware when a goal is reached. Prioritise and collaborate If a project is deemed critical to your organisation, demonstrate its importance by clearing the decks and relieving the team of other responsibilities for now. Progress is also more visible and rewarding when teams are given the opportunity to collaborate on parts of their work. Give acknowledgement Remember to recognise all contributions to a project and acknowledge each milestone as it is reached. This gives clarity and purpose, helping people connect to the shared vision and experience and giving them the drive to continue. Celebrate! Finally, when all the hard work is done, even on a short-term project, it needs to be celebrated. Enrich your team and keep them focused by recognising all achievements and setting time for “events” that uplift them. There doesn’t need to be a big party, but time does need to be allocated for this to happen in a thoughtful and authentic way. So, how about setting some time aside this week to figure out with your team how and when they would like to be recognised and celebrated? Make their work meaningful and it will be worth the investment. Anna O’Flanagan is Founder and Chief Squirrel at Red Squirrel Team Building.

Negotiating is seen as an innate skill, something people are born with. This isn't the case, however; anyone can negotiate if equipped with the correct tools. Alan Nelson tells us how. Whether you’re negotiating with budget holders during the annual planning cycle, or worried about a difficult conversation on an audit assignment, negotiating has always been a key skill that accountants must acquire. For many of us, that has become more apparent during the recent lockdowns, with difficult conversations with suppliers and customers all being conducted under intense pressure. Many think that negotiation is a talent you either have or do not have, but nothing could be further from the truth. Negotiation is a process. You improve by learning key negotiation skills. What's more, there are some simple tools you can use that will help you learn how to negotiate, five of which are outlined below: 1. A bit of empathy goes a long way Try to put yourselves in the other person's shoes. Thinking about the situation from their point of view as well as your own will help you to anticipate their position, and find a solution that is a win for both parties. 2. Speaking, listening and understanding Successful negotiators employ three keys skills: speaking, listening and understanding. You must articulate your position, listen to the other party, and understand what they are saying and why. Very few people are good at all three of these skills. The key, however, is to reflect on your weaknesses. If you are a nervous talker, then prepare for negotiations by thinking about the words you might use. If you tend to talk too much, then prepare some questions. If you find it hard to understand what the other person cares about, make notes while they speak. 3. Understand the trades Negotiation is all about trading concessions. We start in one place and then we trade concessions. So, make a list of all the things you have to trade. Make sure you include everything; some things may be easy for you to concede, but could be of great value to the other party. 4. "If" is the hardest word Once you have your list of possible trades, think about phrases you could use that include the word “if”. For example: “If I could reformat the data to make it easier for you, could you get me your response a couple of days earlier?” "If we set this up so that you get your report before lunchtime every Tuesday, could you commit to this format for the next six months?" This will help to ensure that you don’t give anything away for free. 5. And finally: plan, plan, plan! Planning is something that finance people should be good at. Spend time before the negotiation planning your approach. The four tips given above provide a pretty good list of headings for your plan. In the end, always stay calm and professional, and try to remember that you want to work with these people when lockdown is over. Good luck with your negotiations. Alan Nelson is Managing Director of accountingcpd.net. He is the author of the course Negotiating Skills for Accountants.

With a digital revolution in full swing, how long will it be until our currencies go fully digital? Tristan Perrier examines what central bank digital currencies are and when we might expect to use them. The goal in creating retail central bank digital currencies (CBDC) is to give the public access to a digital currency that retains a certain number of the characteristics of physical currency. Like physical currency, and unlike bank deposits, retail CBDCs will constitute a direct liability for the central bank, eliminating, in principle, any credit risk for the holder. Depending on the selected architecture (direct or indirect account of the end-holder with the central bank, and/or a digital token that can be used online or offline, etc.), such currencies could offer similar advantages of portability and confidentiality to notes and coins. However, their immunity to different undesirable events would differ. For example, CBDC and physical currency would not be vulnerable to the same types of criminal activity. Despite this, it is very unlikely we will see a major country introduce fully functional retail CBDCs this year, although central banks, including some of the larger ones, seem to be speeding up their preparatory work. The People’s Bank of China, for instance, has conducted CBDC tests in several large cities in recent weeks, while the European Central Bank recently concluded a vast survey to decide whether it will launch a concrete project in the second half of 2021. While the US Federal Reserve’s communication on the subject remains more cautious, stating that there is no “need or urge to be first”, certain central banks of smaller countries are at a more advanced stage. What does this mean for banking systems? Economic agents holding domestic CBDC alongside bank deposits (which are also dematerialised but are liabilities of private sector financial institutions) raises the issue of the respective roles and interactions of these two asset categories. Central banks will, in fact, have to define the future terms of competition and plan for or prevent the changes that their coexistence could bring on banks’ cost of financing, risk profile, and the mechanisms by which they normally create currency. They will also have to determine the extent of the role of intermediary played by banks in giving the public access to CBDC (since central banks thus far have not been equipped to interact directly with individuals, it is generally envisaged that commercial banks would be given this role). These are complex issues that, in addition to the technical and operational aspects, warrant a cautious pace of progress by the authorities. A new instrument of monetary policy At present, no major central bank seems to view CBDC as serving a primary role as a new monetary policy instrument beyond the strengthening of the legitimacy and use of the official national currency. Nevertheless, many observers (including the central banks) are reflecting on such a possibility and its major implications. First, CBDC could lower the “effective lower bound” – point beyond which further monetary policy in the same direction is counterproductive – of monetary policy if, for example, they carried negative interest rates or, by contrast, increase it to zero if they constituted zero-rate assets which are less costly to hold (in terms of storage and security) than physical currency. Second, CBDC could, in theory, become a “programmable currency” whose possibilities of use (time-limited, restricted to certain expenditure, etc.) could be managed dynamically by the authorities. Other possibilities, such as new interactions between monetary policy and fiscal policy, are also envisageable. Visibility in this domain is as limited as the theoretical possibilities are vast. CBDCs could have many consequences, some of which would be complex and difficult to figure out. Considerable work and additional testing are vital before they are introduced. However, with the gradual reduction in the use of physical money and the rapid development of digital rivals for traditional currencies, it is very likely that we will see CBDC introduced within a few years. This could impact on many sectors of domestic economic and financial life, as well as international financial equilibria. Tristan Perrier is a Global Views Analyst at Amundi. A version of this article was originally published in The FM Report.

COVID-19 and Brexit have meant many businesses had to adapt to a different environment – fast. As 2021 progresses, what will the future look like and how can businesses seize new opportunities? Mairead Connolly explains. We are well into the new year and the business landscape remains dominated by COVID-19. Many companies, especially private and family businesses, are also battling with the post-Brexit trading landscape. However, times of change are also an opportunity to reshape, and we are seeing an acceleration of a range of trends that had been brewing. As businesses assess the new landscape, positioning for future growth should be a priority. Here are five key considerations for private businesses to continue to scale-up and become fit for the future.  1. Strategy for growth  It is important for businesses to reassess and set a growth strategy with clear targets. This should include sensitivity analysis for different levels of sales, products, month-by-month reports and geography. Headcount and training costs, along with new customers and markets you may target, should also be factors.  The old adage “cash is king” still holds resonance, and any additional funding requirements should be considered with plenty of time allowed to prepare projections and attend to formalities.  Don’t forget about sustainability in your planning. Adopting sustainable approaches can help differentiate and build confidence in your brand, as well as generating cost savings. 2. Upskill your people   Your people are critical to your growth and success. Availability of key skills remains a challenge for many businesses. PwC’s 2020 NextGen Survey, published prior to the pandemic, highlighted that a major concern for family businesses is gaining the skills required – with leadership and strategic thinking regarded as the most essential skills needed.  Upskilling the people you have and who understand your culture is critical for plugging any skills gap. Family or team members who have the potential and agility to help grow the business into the future should be identified. While formal training may certainly be warranted, the power of shadowing and mentoring should not be underestimated.  3. Digitise  Any business wishing to grow and scale must keep pace with technology, and the COVID-19 backdrop has brought home how this investment can pay dividends. We have seen many family and entrepreneurial businesses creating or expanding their online presence, initially as a lockdown survival strategy. Now positioning for post-COVID-19 growth, the same companies recognise that this pivot to digital is also an opportunity to futureproof their business.   Digitisation can also take place in smaller steps, however, starting with automated reporting or dashboards for real time financial data, for example. Levering technology to have meaningful information available at the touch of a button allows valuable management time to be spent on proactive strategy, rather than distilling and reacting to historic data.      Successful digital transformation will give companies the competitive edge they need to become world-class.   4.  Maximise cash flows today  As your business grows, it is important to ensure the controls you have around spending and other day-to-day decision-making remain robust. Rigorous debtor and creditor administration ensures that cash is available when needed, and can minimise the level of dependence on debt or other third party funding. Tax should be carefully considered, as well, with any available reliefs and benefits claimed. For those companies which suffered losses during the pandemic period, a review should be undertaken to ensure that loss reliefs are utilised to trigger refunds where applicable. 5. Protecting wealth for the long term  As well as strategising for the business today, developing a clear succession plan for the medium- to long-term should remain a priority for ambitious family businesses and SMEs. This is something that is overlooked by many businesses. Tellingly, PwC’s latest Irish family business survey highlighted that less than one fifth (18%) of respondents had a robust, formalised and communicated succession plan in place. Key elements include structuring for ownership transition, with/without retirement of key founders, ensuring governance frameworks are fit for growth, and identifying the correct next generation or non-family management to drive the business forward.    The succession journey is an opportunity to reinforce the broader business strategy, digital and upskilling objectives. If proactively managed, the “perfect storm” of disruption via COVID-19 and Brexit uncertainty could well become the accelerator for business and family success in the long term. Mairead Connolly is Partner of PwC Entrepreneurial & Private Business Practice.

Many businesses are wary of automation and artificial intelligence dehumanising client relationships. Larissa Feeney says, however, that embracing this new technology will lead to more meaningful and personal interactions with your customers. Many owners of small – and even bigger – practices feel that automation or artificial intelligence (AI) has no role to play in their workplace, worrying that it can lead to a dehumanisation of work practices that will result in a poor connection with clients. However, I believe that the introduction of digital practice management and ‘lean’ systems – minimising waste while maximising productivity –  can streamline and grow your business, as well as help build more lasting relationships with your clients. When we established our business 10 years ago, one of our aims was to systemise as many processes as possible, including tasks that used to be manual, such as emails to clients, record collection and payroll. We looked at every process to see what could be automated. At that time, there was a fear across the industry that automation and the use of AI could result in a less personalised service. The fear that robots will take over our jobs and clients will pay less for automated services is still prevalent even now; however, we have found the opposite – AI frees up the team to give better service to clients. Lean principles Over the past 12 months, we have implemented lean principles (value, the value stream, flow, pull and perfection) across our own business. This has cut down on the administration and support functions that are needed which means the core team can focus on servicing clients better. This freedom allows you to build a real and lasting relationship with clients, making you part of their team rather than an external service that could be completed by anyone. It creates a different relationship entirely; you become more like a trusted advisor rather than a bean counter processing numbers. Importantly, clients will like the fact that you are putting in more time thinking about their business strategically rather than spending time on processes that could be automated. How to implement a lean structure There are quick and easy savings to be made by implementing a lean structure for any business at any stage.   For instance, one of the processes we implemented under our lean structure was examining a simple task that would take three days over the course of the month to complete. We have now automated that process and it takes one member of the team one second to press one button. Another easy win has been the automation of emails to clients. I did struggle when we started to automate emails – and sometimes I still do. I wanted to keep that personal contact with each and every client. However, as the business grew, I knew it was impossible for that to continue; instead of spending all my time writing out personalised emails, I can spend time in other crucial areas of the organisation. Both simple automations outlined above have saved team members’ time that can now be focused towards building a personal, meaningful relationship with clients and putting their priorities first, which is the cornerstone of good customer management. Larissa Feeney is Founder and CEO at Accountant Online

What can SMEs outside of Ireland’s bigger cities do to prepare for a post-pandemic landscape? Linda Doran outlines a five-step plan.  The timetable for Ireland’s COVID-19 vaccination programme is firming up. No doubt there will be ups and downs. However, business owners and entrepreneurs are starting to realise that we are roughly two-thirds of the way through the crisis. It is essential, therefore, to think about a business plan for the post-pandemic business landscape. Outlined below are five keys points for a post-pandemic plan for small businesses outside of the country’s cities: Get ready for the ‘staycation’ Counties all over the country are known for their tourism, from the Wild Atlantic way to Ireland’s ancient east. It is important that businesses in all regions remember where its strengths lie, and for 2021 this will involve capitalising on ‘staycations’. Foreign travel looks unlikely and areas outside of Dublin are well-placed to attract strong domestic tourist numbers. Protect local jobs Unemployment is the biggest issue the county will face in the second half of 2021. We need to treat the cash flow boost from the staycation spend as the springboard that will keep as many local businesses afloat as possible. For the most vulnerable or worst hit businesses, this may involve a local Circuit Court examinership process or the Government’s new Summary Rescue Process, due to be introduced in the latter part of the year. One way or another, we need to protect the most vulnerable businesses in our communities. Get young people back into the workforce Protecting businesses will facilitate getting as many young people back into the workforce as possible. The younger generation have shouldered an enormous burden in the crisis, in terms of both educational and work opportunities. To avoid a lost generation, we need to do everything we can to bring young people back into the productive local economy. Look for sustainable recovery Looking medium-term, we need to be ready for the bounce back. However, we must avoid a Celtic Tiger-esque mini-boom. A sustainable recovery is required; we need to be wary of inflation and the increase in interest rates that inevitably follows, as the pent-up demand in Ireland is unleashed. Get ready for ‘2022 normal’ We need to be ready for what “2022 Normal” will look like. It is likely we will see more flexibility in terms of working from home arrangements, less business travel, more video conferencing, more online selling and less appetite for waste or non-productive areas of business. All small businesses need to adapt, evolve and be ready for these challenges. The light that we can finally see at the end of the tunnel should form the basis for a bright future for all counties, but only if the planning starts now. Linda Doran is the South East Partner in Baker Tilly.

Patricia Barker outlines red flags for audit and risk committees as they continue to navigate the coronavirus pandemic and the fallout from Brexit. It’s hard to imagine audit and risk committee members as frontline workers in the face of the COVID-19 pandemic. However, time will undoubtedly show that the guidance of a good, active audit and risk committee was a pivotal oxygen tank for companies as they stumbled through these difficult times. In providing effective oversight, the audit and risk committee’s contribution must be responsive to the additional risks and uncertainties arising from COVID-19 and Brexit. The radar is picking up new bleeps, which include the following. New risks on the risk register It is vital to identify new risks, the appetite for those risks, and mitigations that can be put in place. These risks include, but are not limited to, failure of suppliers or customers due to economic pressures; invocation of force majeure clauses to avoid performance of contracts; reputational damage caused by a failure of staff to comply with Government guidance; a cluster outbreak of COVID-19 among staff; insufficient funding; and health and safety failure on the premises. Going concern All audit and risk committees will have to conduct a deep dive into the appropriateness of using the going concern concept for the 2020 financial statements. This work must be completed in advance of the arrival of the external auditors. Business continuity plan Audit committees should be very familiar with the robustness of the business continuity plan. They should also be satisfied that it has been rigorously tested to cope with the potential crashes that may result from the black swan event that is the COVID-19 pandemic. Procurement There are high risks associated with rushed procurement practices, which were necessary due to the emergency nature of the pandemic. Audit and risk committees should create a schedule of any instances where management had to speed up or bypass procurement practices due to the need to procure for the pandemic. They will need to be satisfied that all material exemptions from procurement regulations have been appropriately applied and authorised. The exemptions provided for in legislation include situations of extreme urgency, where there is a genuine emergency due to events that could not have been foreseen in situations that were not controlled by the company. It would seem that the pandemic (although not Brexit) complies with these conditions, which would permit the procurement of goods or services in a fast-tracked way outside the standard procurement policy. However, the current question for audit and risk committees is how long it can reasonably be assumed that COVID-19 is an emergency that could not have been foreseen. Control of government supports There are high risks associated with the very rapid deployment of government resources to a vast range of beneficiaries. To the extent that such resources have been claimed by the company or on behalf of staff, the audit and risk committee should be happy that appropriate controls were put in place to ensure that the claim was made in accordance with the terms of issue, that the funding was applied as stipulated, and that anti-fraud measures were appropriately applied. The external auditors will likely examine the transparency and governance associated with benefits drawn down, such as: Grants; Subsidies; Liquidity loans; Credit guarantees; Short-term compensations; Payroll support; Tax alleviation; Additional human resources deployed; and Tax losses carried back. Economic fraud and cybersecurity robustness There have been significant incidences of cybersecurity and IT failures due to opportunistic frauds arising from COVID-19 such as email compromise, investment scams, and phishing scams. In an Economic Crimes Survey conducted by PwC in 2020, 18% of organisations surveyed reported that they had incurred losses due to fraud in excess of €800,000 and 13% said they had incurred losses in excess of €5 million. These costs do not account for the losses arising from remediation, fines, brand damage and reputational damage. Economic crime dealt with by the European Commission Crime Bureau includes the following: Cybercrime; Customer fraud; Asset misappropriation; Money laundering; HR/employee fraud; Deceptive business practice; Intellectual property theft; and Accounting fraud. Audit and risk committees must seek evidence that economic risks were explicitly addressed and closed off by the company, including assurance that such risks are adequately insured. Third-party risks Focusing on internal risks is only part of the challenge; the risks associated with outsourced goods and services also need attention. These risks are elevated as our direct controls change due to virtual working. The risk attack field related to external service providers is as varied as stationery, security, catering and HR, resulting in additional risks of fraud and cyberattack. According to PwC’s Global Economic Crime and Fraud Survey 2020, one in five respondents identified vendors and suppliers as the source of their most disruptive external fraud. Half of the respondents lacked a mature third-party risk management programme, and 21% had none at all. Audit and risk committees should address this issue with the leadership team to ascertain the extent of the vulnerability and the potential need to seek professional assistance. Remote working Audit and risk committees must be proactive in implementing robust health and safety and human resource protection policies to safeguard employees working from home and safeguard the company’s assets. Issues raised should include health and safety mechanisms to ensure that staff have suitable stress management supports; good ergonomic working conditions; and reasonable boundary control over working hours. Furthermore, where company assets such as docking stations, laptops and other equipment have been taken home, mechanisms should be in place to control those assets and to appraise valuations and impairments. Appropriate protocols should also be in place to ensure that employees are fulfilling their contracts. GDPR policies will need to be stress-tested to assure the audit and risk committee that there have been no breaches of the regulations. The audit and risk committee will also need to confirm that the company’s insurance policies cover the changed working theatre. Risk of redundancies If it seems likely that squeezed resources will lead to redundancies, the audit and risk committee will want to see an assessment of this risk, the mitigations in terms of spreading the load, the policy on the redundancy payment matrix, and budgetary planning. Provision of ad hoc board support During the emergency, the audit and risk committee should be willing to convene to conduct deep dives, specific investigations, or advisory analysis as may arise due to unforeseen issues relating to the COVID-19 pandemic or Brexit. All in all, this is a busy time for audit and risk committees, and we will likely look back on this period and determine that committee members provided a highly professional, emotionally intelligent, and effective service to boards. It is unlikely that citizens will stand on their doorsteps and applaud them, but at least they will know that they did a good job.   Patricia Barker chairs the audit committees of the Marine Institute and Tallaght Hospital and is a member of the Ethics and Governance Committee at Chartered Accountants Ireland.

Although significant challenges remain, the north-west region can look forward to better days ahead, writes Dawn McLaughlin. After one of the most challenging years in business, 2021 provides some cause for optimism in the north-west city region. The vaccination rollout across the globe gives us the best chance to get back to normal and truly get our recovery efforts underway. As a Chartered Accountant in practice and in my new role as President of the Londonderry Chamber of Commerce, I have seen first-hand the extreme pressures on businesses. Cash reserves are depleted, cash flow is becoming a major concern, and confidence is gone. After a year of COVID-19, the strains on entrepreneurs and businesses of all shapes and sizes are only increasing. The need for a government-led recovery strategy, developed in collaboration with business, is greater than ever. However, I also see reasons for positivity on the horizon. While the double blow of the pandemic and Brexit seriously affected local businesses, I believe we can recover and rebuild better in 2021 and beyond, given the opportunity and support to do so. One of the rare highlights of 2020 was the announcement of the Graduate Entry Medical School at Ulster University’s Magee Campus in Derry. Representing the culmination of years of hard work and campaigning, the new medical school, which will welcome its first students in September 2021, illustrates the strength of the north-west’s higher education offerings. In the new post-Brexit world, cross-border cooperation and collaboration will be as important as ever. In collaborating with our neighbours in Donegal and beyond, we are working to make the north-west city region a more robust economy and the best place on the island to set-up a business. An Taoiseach’s new Shared Island Initiative provides the opportunity to maximise the tangible benefits of all-island cooperation. Committing €500 million over five years for cross-border projects, we are making a strong case for investment to fund infrastructure projects like the A5 Western Transport Corridor, funding to expand Ulster University’s Magee Campus and other cross-border research projects. Along with the full rollout of the City Deal project, the Shared Island Initiative can unlock our city region’s full potential and drive the post-pandemic recovery. By giving our leaders and businesses the tools to rebuild and create a more thriving and bustling regional economy, we can attract new investment and create new, secure jobs. But, in the short- and medium-term, this will require serious commitment and courage from the Northern Ireland Executive, the UK Government, and the Irish Government to get our struggling businesses on the whole island through this rocky period and ensure that they survive and thrive. With institutions like Ulster University Business School, North-West Regional College and Letterkenny Institute of Technology, the north-west is fertile ground for world-leading research and development, attracting more students to our region. Chartered Accountants in the north-west should prepare for this regional growth, and look to our local further and higher education institutions to provide a stream of high-calibre students who might well be the next generation of Chartered Accountants. Dawn McLaughlin is Founder of Dawn McLaughlin & Co. Chartered Accountants  and President of Londonderry Chamber of Commerce.

Having read the 1,246-page Trade and Cooperation Agreement, which was agreed to “in principle” by the EU and UK on Christmas Eve, Cróna Clohisey shares her thoughts on the critical elements causing concern and highlights areas that warrant further work. In recent weeks, there has been as much discussion about what the Trade and Cooperation Agreement (TCA) reached between the EU and UK on Christmas Eve doesn’t cover as what it does. The deal, spanning some 1,246 pages, threw up some surprises and certainly left a lot for discussion between the two sides in the months ahead. The main areas covered in the document include trade in goods and certain services, energy, aviation and road transport, fisheries, social security coordination, law enforcement, digital trade and intellectual property. Certain big-ticket items, including decisions relating to equivalence for financial services, the adequacy of the UK’s data protection regime, or an assessment of the UK’s sanitary and phytosanitary regime were excluded, however. These three areas, in particular, are unilateral decisions of the EU and were never subject to negotiation. The TCA does not govern trade in goods between Northern Ireland and the EU where the Protocol on Ireland and Northern Ireland will apply, bringing a whole other set of rules – not least in customs and VAT. Implementing, applying, and interpreting the TCA falls to the newly created Partnership Council. This political body will be co-chaired by a European Commission member and a UK government minister, and decisions will be made by mutual consent. Several specialised committees, including a trade partnership committee, will assist the Partnership Council. Therefore, it seems that negotiations between the EU and the UK on their future relationship are set to continue long into the future.  In this article, I will look at the TCA elements that are causing concern or require further work. Trade in goods and customs The real test for cross-border trade between the UK and EU is really just beginning, given that traffic at ports and borders is generally quieter in the weeks after Christmas. Still, problems with paperwork (which could never be removed by a free-trade agreement), health checks and systems were reported by many companies in the first few weeks of the year. We have heard reports of large retailers reporting shortages on their shelves with retailers in Northern Ireland significantly affected given the customs declarations required for goods brought into Northern Ireland from Great Britain – a requirement that seems to have taken some by surprise.   The TCA’s chapter on rules of origin is particularly cumbersome and has already hampered, and is expected to continue to hamper, existing supply chains. The ‘zero tariffs, zero quotas’ headline celebrating free trade is not all it seems, particularly when only eligible goods qualify for this approach. Rules of origin determine a product’s economic nationality and where products ‘originate’ is the fundamental basis for determining if tariffs apply. The TCA says that for products to benefit from zero tariffs and zero quotas, goods must be wholly obtained from, or manufactured, in the EU or UK or be substantially transformed or processed in the EU or UK in line with the specific origin rules that apply to the product being exported. Minor handling, unpacking and repacking won’t qualify as sufficiently processed. There could be issues for goods not wholly grown, farmed, fished or mined in either the UK or EU.  The amount of non-originating materials (i.e. materials not originating in either the EU or UK) that a product can have in order to still benefit from the TCA differs depending on the product. The annexes to the TCA set out the product-specific rules, and you will need to identify the commodity code as a starting point. Some products allow a maximum level of non-originating content (e.g. 50% of the ex-works selling price), but again this varies from product to product. If, for example, products are processed in the UK, the TCA states that EU origin materials and processing can be counted when considering whether UK exports to the EU meet rules of origin requirements. There is a qualifying production level, for example, called ‘cumulation’. Another nuance is that some rules of origin require that non-originating inputs used in the production of a good must have a different tariff heading, while some rules require a specific operation to take place in the UK for the goods to be classed as being of UK origin. For certain chemicals, for example, a chemical reaction must occur in the UK. It’s also important to remember that when goods are exported from a customs territory, origin status is lost (preferential origin status can only apply once). Take leather shoes originating in Spain as an example. When the shoes move from Spain to Great Britain and are then shipped to Ireland, they lose their EU preferential origin status when they leave Great Britain. Because they haven’t been processed or altered in Great Britain, they don’t have UK origin. Therefore, unless the goods move under a special and complicated customs procedure, duties arise on the goods entering Ireland. The now infamous case of Marks & Spencer’s Percy Pig confectionery is an example of this issue. These issues add to supply chain headaches and give rise to hidden costs. The rules are undoubtedly complex and don’t suit the UK’s significant role as a distribution hub. Business travel Free movement of people between the EU and UK ended on 1 January 2021. Of course, Irish and UK citizens are still free to live, travel and work in either country under the rules of the Common Travel Area (CTA). Beyond this category of people, immigration requirements – including securing permission to work and restrictions on the activities that can be performed as business travellers – are now a key consideration for UK nationals moving throughout the rest of the EU, including UK citizens residing in Ireland. Similar policies are in place for EU nationals seeking to travel to, and work in, the UK. The CTA allows short-term business visitors to enter either jurisdiction visa-free for 90 days in any given six-month period, but there are restrictions on the activities that can be performed. Activities such as meetings, conferences, trade exhibitions, and consultations are allowed. However, anything that involves selling goods or services directly to the public requires a work visa. The specific business situations where a visa is required are set out in the annexes to the TCA. The environment In a first for the EU, the fight against climate change has been included as an “essential element” in a bilateral agreement with a third country. This effectively means that if the EU or the UK were to withdraw from the Paris Agreement or take measures defeating its purpose, the other side would have the right to suspend or even terminate all or part of the TCA. The TCA paves the way for a joint framework for cooperation on renewable energy and other sustainable practices, as well as the creation of a new model for energy trading. However, it allows both sides to set their own climate and environmental policies in areas such as carbon emissions/carbon pricing, air quality, and biodiversity conservation. Divergence from respective environmental and climate laws will be monitored, but this area is not subject to the TCA’s main dispute resolution mechanism. It will instead be governed by a ‘Panel of Experts’ procedure. Time will tell how effective this will be. Data transfers Many businesses rely on the ability to transfer personal data about their customers or employees to offer goods and services across borders. A company based in Belfast, for example, might outsource its payroll processing to a company based in Galway. In this case, any restriction on this data’s ability to flow freely would act as a trade barrier. The EU and UK haven’t concluded a deal yet to allow data to continue to flow freely across borders, but the EU has committed to a decision on the adequacy of the UK’s system (UK GDPR) by 30 June 2021. Until then, the UK will be treated as if it is still part of the EU on data protection grounds, and data can continue to flow freely between jurisdictions. If the EU doesn’t reach an adequacy agreement (although reports suggest that a deal is close), provisions such as standard contractual clauses may be needed in future transfers of data between the UK and EU. Financial services Currently, the UK has identical rules to the EU in terms of the regulation of financial services. Supplementary documentation published with the TCA states that the UK Treasury and European Commission aim to sign a cooperation agreement covering financial services regulation by March 2021. The EU has already deemed the UK equivalent for a time-limited basis in clearing and transaction settlement, while the UK has provided the EU with specific findings that would enable EU member states to conduct such business in the UK. Many other areas of the TCA will be digested and interpreted in the weeks and months ahead. Trade deals are predominantly about trade. Only time will tell if they go far enough in other areas such as environment, security and intelligence, or healthcare, for example. Let’s hope that in the long run, a deal is better than no-deal. POINT OF VIEW:  Barry Cullen, Silver Hill Duck Silver Hill Duck is a perfect example of a cross-border business and the various challenges posed by the new trading relationship between the EU and the UK. Silver Hill Duck is a duck manufacturing company based in Emyvale, Co. Monaghan, with operations in Northern Ireland and the Republic of Ireland. The company controls all aspects of the breeding, farming, production and packaging of its famous Silver Hill Duck breed. Established in 1962, it has supplied the best Chinese restaurants in the UK for the past 40 years. During this time, the company has expanded its customer base to include retail and foodservice, including a range of raw and cooked products. Barry Cullen, Head of Sales at Silver Hill Duck and President of the Irish Exporters Association, shares the background to his company’s commercial decisions. “The UK was historically our largest market, and we took some steps before 1 January 2021 to avoid the expected delays that were predicted at the ports. This involved setting up a Northern Ireland company with the appropriate VAT and EORI numbers, and a customs clearance agent to handle the paperwork. Silver Hill also had to source a warehousing partner in the UK that could hold frozen stock for our UK customers. Trading with our fresh retail customers was suspended for the first few weeks in January due to the uncertainty around delays at ports and the documentation required. The first few weeks of 2021 has shown that this was a prudent decision, as it has become apparent that the UK is nowhere near ready for the new trading requirements. There are major delays at Holyhead with hauliers unable to access the Irish market due to incorrect paperwork and a COVID-19 testing regime that has exacerbated the problem. It’s a case of learning on the job as our sales team feels its way through the many documentation requirements to send a pallet of product to the UK. For example, despite having done due diligence for over three years, we were not aware of the REX system and the need to be registered to self-certify our goods. Even though there are no actual tariffs, the customs clearance costs are high at approximately €120 per order, regardless of size, if you act as exporter and importer for the UK customer. This will make much retail business commercially unviable and will have a significant knock-on effect on small- and medium-sized enterprises in the coming months. There will undoubtedly be a settling-in period for the new trading requirements, but the cost for traders, hauliers and suppliers is as yet uncertain.”   Cróna Clohisey is Public Policy Lead at Chartered Accountants Ireland.

Three Chartered Accountants talk to Accountancy Ireland about what worked and what didn’t in 2020, and the changes they have made to ensure success in both their work and personal lives in 2021. As we moved into 2021, so did the pandemic, lockdowns and working from home. Three members of Chartered Accountants Ireland – Larissa Feeney, CEO of Accountants Online; Maeve Hunt, Associate Director at Grant Thornton; and Kevin Nyhan, Credit Manager at AIB – describe what made their 2020 difficult, how they overcame those challenges, and what they hope to change this year. Goal-setting and disconnecting Larissa Feeney, founder and CEO of Accountant Online, has found that making realistic goals and not loading up her task list has kept her going during the pandemic. As a company, we were lucky when the pandemic hit as we were accustomed to remote working and automation, but adapting to working from home during a lockdown is challenging for everyone. I put a routine in place from early on: get up at 6.30am to do some reading, yoga and meditation before going for a walk. I am ready for work at 9am. If I keep to that routine consistently, it keeps me focused for the day and on an even keel.  Every Sunday evening, when I am relaxed, I set out all my weekly goals – both work and personal – and there is a great satisfaction to ticking those off during the week. At the start, I tried to motivate myself by putting lots of things on the list but that only served to make me feel stressed, overwhelmed and anxious, so I ensure the list is realistic and follows SMART (specific, measurable, achievable, realistic, and timely) principles. All my weekly goals contribute towards my monthly goals, my annual goals and my five-year goals. I know that I have higher energy in the early part of the week, so I take on the harder tasks during those days.  I have three children at home, so homeschooling means that you can’t give both home or work life 100%, but we are all doing our best. We have to go easy on ourselves and know that we cannot operate at the same level as before the pandemic, but we will get back to those levels one day.  To disconnect, I read in the evenings – but books that are good for the soul, rather than the business and leadership books I read in the mornings. Walking and getting out in the fresh air always helps. At home, a different person makes the lunch and the dinner every day and we take turns to pick a family movie to watch together.  Apart from ‘getting back to normal’, what I would like to change this year is the further evolution and development of the team and further investment in automation and innovation. Personally, I will continue to work on the home/business divide, which can always do with improvement. Stick with a routine in 2021  Maeve Hunt, Director of Audit and Assurance at  Grant Thornton, first thought the same day-to-day routine would get her down, but it has proved to be a winning habit.  When the pandemic hit last March, we scrambled to leave our offices and head home with monitors under the arm (quite literally) to enter this new way of working. For many, it was a balancing act of working at home in shifts and looking after children. For others, it was an isolating moment in time with no one sharing their working environment. What we needed was a new ‘routine’ of working. Is there a word that is more uninspiring and dull than ‘routine’?  It is a word we want to escape from. We want to travel the world and hide from routine, and seek exciting new opportunities. Can we be creative if we are in a routine?  If we have learned anything from the last year, it’s that routine may be dull, but it is familiar and dependable. A good routine has been key in order to live a somewhat enjoyable and productive working and personal life through the pandemic.  What worked for me was starting my working day earlier, taking an extended break in the middle of the day to ensure I homeschool my five-year-old and play with my two-year-old.  Inevitably, this meant working at night but I found that the shorter, focused periods of work I was completing actually made me more productive. That became a good motivator for me. What I found most challenging in that first lockdown period was how easy it was to go from day to day without talking to another member of my team. I quickly realised that the part I loved most about my job, and missed most during the health crisis, was collaboration.  Scheduling a daily chat with a member of the team has really helped with this. These social calls have helped me disconnect and give me energy for the rest of the working day.  So where do we go from here? There are many things I would change about the last year, but I think I’ve learned a lot about the importance of sticking to a routine that offers a bit of variety. It may not be the traditional working day in the office, but it is all about balance.  It is ensuring you disconnect in the day and take extended breaks. The beauty of working at home is the ability to get back time, cutting out commutes, inevitable down time and unproductive moments in the office. Use this time! Use it to clear your head, go for a walk, read a book, play with the kids. You will be all the more productive for it. A few tweaks to that dreaded routine, which we believe kills all imagination, might end up providing us with enthusiasm and energy for our daily life.   The importance of connections and disconnection  Kevin Nyhan, Credit Manager at AIB, has gone into 2021 wanting to reconnect with his colleagues and knowing the importance of leaving work behind at the end of the day. I was fortunate in that I had been able to work from home a few days each month before the COVID-19 crisis, so it wasn’t a completely new experience to me. However, there’s a big difference between doing it occasionally and working remotely on a permanent basis.  From the start, I’ve made sure to form and try to keep a daily routine, similar to what I did when I was in the office. I get up at the same time each day, try to start and finish at the same time, as well as taking breaks and lunch around the same as I would have done in the office. I have found that really helps to maintain some sort of difference between work and home.  Working on my own all day, I do miss the social interaction of work. At the start of the pandemic, like most, I tried group zoom calls and quizzes but, as we all know, it’s hard to have group discussions via video call. Instead, I now make the point of scheduling a short video call each week with a colleague or friend to have a coffee and a chat and that does help keep in touch with people. I’m fortunate to have a spare room to work from so I can close the door in the evening and try to leave work behind. However, it can be difficult to switch off when you’re just walking from one room to another at the end of the day. The commute between the office and home was useful to disconnect from work-mode and I do miss that break between home and work. I now take a short walk in the evening after I finish work. That 20 minutes really helps me to disconnect. Plus, my dog is delighted with all the walks he is getting these days.