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 “This research is less than a year old and already out of date, which just shows you how fast the rate of uptake is.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

Ormsby & Rhodes Managing Partner David Marsh tells Barry McCall why one of Ireland’s oldest accountancy firms has embraced consolidation to future-proof its legacy In an announcement that took many by surprise, Ormsby & Rhodes, one of Ireland’s longest established accountancy firms, revealed in January that it had agreed to merge with AAB, a UK firm backed by private equity. Established in 1911 and consistently ranked in the top 20 firms in Ireland, Ormsby & Rhodes has revenues of over €7 million and provides audit, accounting, tax, payroll, company secretarial and business advisory support to a wide range of clients nationwide.  The merger strengthens the firm’s international presence and access to the European market while also propelling AAB past the €120 million revenue mark. “If you had asked me a year ago if a merger was on our agenda I would have said no,” says Ormsby & Rhodes Managing Partner David Marsh. “Ours is a 100-year-old firm doing very well, why would we sell?” Consolidation: the way forward Attendance at an event hosted by Chartered Accountants Ireland, at which one of the speakers spoke about his own firm’s merger, prompted a rethink.  “I spoke to him afterwards and he explained that consolidation is the future for the sector; that there is so much regulation and other new developments coming, firms cannot stand still, or they will fall behind. They need to grow and move forward,” Marsh explains. It is not a question of growing at the expense of others but rather positioning the firm to take full advantage of opportunities for growth.  “There is lots of work out there for everyone, but you need to be large enough, and have the necessary resources in terms of staff, technology and international reach, to service clients,” Marsh says.  “Consolidation is also good for the Institute as it means there are fewer firms to regulate in an increasingly complex world.” Protecting a legacy Before agreeing to any deal, Marsh was adamant that Ormsby & Rhodes’ core values and identity would be fully preserved. “I am passionate about Ormsby & Rhodes and the legacy we have to look after. That is very, very important to me. Following our merger with AAB, we still have the same identity and the same values.” Ormsby & Rhodes is the oldest accountancy firm in Ireland still trading under its original name. It was re-established in 1911 by Geoffrey Lewis, Neil Payne and Declan O’Luanaigh “We have clients who have been with us for over 50 years,” Marsh says. “The length of time clients stay with us is quite amazing. They don’t leave us. The average tenure of our top 10 clients is over 20 years.  “Some are large-scale businesses that could easily move to a Big Four firm, but they have chosen to stay with us because of the level of service we provide.  “We have the same partners and the same identity and ethos, and we will keep on doing what we did before; that’s what AAB wants us to do.” Succession and the next generation Marsh first joined Ormsby & Rhodes as an audit manager in 1991 having trained with EY and worked at it’s Jersey office for four years before returning to Ireland.  He subsequently left Ormsby & Rhodes in 1993 to set up his own firm, DJ Marsh & Associates.  “The business went really well,” Marsh recalls. “I started with seven clients and had more than 100 by the time I accepted the offer to merge the firm with Ormsby & Rhodes in 2000.” Three senior partners have retired from the firm in recent years, prompting Marsh to carefully consider its future leadership.  “I decided to bring young partners through. I am 64 but most of our partners are in their forties with some in their early thirties. It’s quite unusual to have an age-profile like this. Four of our 10 partners are female. The heart of the firm are these 10 partners.” The decision to explore a possible merger was taken following a meeting of the firm’s equity partners early in 2024.  “After that, we held meetings with others in the industry to get their views and opinions and we decided it was the right thing for us,” says Marsh.  “The priority for us was to form a partnership with a company we could grow with while also retaining our core identity. We didn’t want to just be subsumed into a larger organisation.” This is where AAB came in. “AAB is a Scottish firm that was the same as us five years ago when they decided to grow the business through consolidation with private equity backing,” Marsh says. “We had a number of meetings with them, and we found both sides liked what the other was doing.  “Chartered Accountants Ireland was great throughout the process. They were so quick at coming back whenever we had questions.” The benefits of the merger for Ormsby & Rhodes are significant, the first being the firm’s scope to service clients doing business in the UK.  “If one of our clients is doing business in the UK, we now have AAB to look after them and we can look after AAB clients here in Ireland,” says Marsh. Enhanced technology is another benefit: “We were about to spend a huge amount on new and upgraded systems. AAB had all of that and we are now able to access their platforms, creating efficiency and additional capacity to service clients.” Future of accountancy While he sees the advent of newer technologies such as artificial intelligence (AI) as important, Marsh believes the human touch will always be critical in the accounting profession and the wider business world. “AI is just another tool we will use. At the end of the day, it’s the accountant that makes the decisions and signs off on the accounts,” he says. Environmental, social and governance (ESG) principles are another key focus area for accountants currently.  “AAB is very big in ESG and has two partners and a team of four in this area. We have large clients who need this support. If a company has private equity investment, it needs to complete sustainability and ESG reports and the same applies to multinational firms,” Marsh says. “Transfer pricing is also huge, and AAB has a dedicated team for this, which is really important for us.  “For example, tax in the UK is changing very rapidly, and you have to be on the ball there. Corporation tax is 26 per cent in the UK and that’s where transfer pricing comes in. You need to get it right.” Marsh sees further potential for AAB’s Virtual Finance Service in the Irish market. “Mid-sized companies may not have the resources to pay a full-time chief financial officer (CFO),” he explains.  “Instead, they can outsource the CFO role to AAB on a cost-effective basis and get access to an experienced professional who will spend part of their time acting as CFO for them and the rest of their time looking after other clients.” Right now, Ormsby & Rhodes is preparing to host the Europe, Middle East and Africa conference of the BKR International association of independent accounting and advisory firms in Dublin in June.  “BKR International is a referral association, and we have been a member for 30 years. We have developed relationships with member firms in countries including France, Germany, America and Australia. It is a fantastic association for developing relationships and new business,” Marsh says. More than 200 delegates are expected to attend the conference. “It represents a huge opportunity to promote Ireland; to show what we can do here; and generate new business for ourselves and other member firms.” Marsh’s ultimate ambition for Ormsby & Prentice stretches much further into the future, however. “We want to be a very strong mid-tier partner led firm with a reputation for providing excellent service to clients,” he says.  “I believe we can double or treble in size over the next five years but, ultimately, I want to grow a practice that is sustainable for the next 100 years.  “That’s what this is about. I like to think Ormsby & Rhodes, with AAB, will grow for another century.”

Mentorship is key for young accountants transitioning to business development, offering guidance on effective networking, client engagement and relationship-building, says Mary Cloonan The challenge can feel significant for young accountants stepping into roles with business development targets for the first time. New responsibilities, particularly those requiring skills like networking and relationship-building, are often far removed from their previous technical focus. This is where mentorship can help, providing guidance and support to help them grow into the demands of their new role. Business development requires more than technical expertise. It involves cultivating relationships, strategic thinking and communicating value—skills not typically part of an accountant’s formal training. A mentor can: Provide practical guidance: Teach the mentee how to approach client engagement, network effectively and communicate persuasively. Build confidence: Support them as they tackle new challenges and unfamiliar scenarios. Set the example: Offer insights through real-world experiences and professional behaviour. Align efforts with strategy: Help them understand how their contributions support the firm’s broader goals. Effective mentoring: seven steps Here are seven steps experienced accountants can take to be a good mentor. 1. Simplify the starting point Break down business development into manageable steps. Help your mentee see this as relationship-building exercise rather than purely sales-focused. Concentrate on: Recognising potential opportunities in their network. Understanding the firm’s unique value proposition. Developing a genuine interest in client needs. 2. Set measurable goals Define clear and realistic targets. For example: Attend one networking event per month. Schedule two introductory meetings with prospective clients. Contribute to a team pitch or proposal. These bite-sized goals can help to build momentum without overwhelming them. 3. Practice through role-play Simulated scenarios are invaluable for building confidence. “Practice” situations with your mentee, such as: Introducing themselves at events. Explaining the firm’s services to a potential client. Handling objections effectively. Role-playing in a safe environment can help to prepare them for real-world challenges. 4. Encourage observation Let your mentee shadow experienced professionals. Whether it’s a client meeting, negotiation or event, watching mentors in action is a powerful learning tool. Follow up with discussions to reinforce key takeaways. 5. Emphasise listening Strong business development is rooted in active listening. Encourage them to: Ask open-ended questions. Pay close attention to what clients are really saying. Build trust by understanding challenges from the client’s perspective. 6. Give constructive feedback Feedback is essential. Review your mentee’s performance after meetings or pitches— highlight strengths and suggest improvements. Recognising small wins can boost confidence and foster growth. 7. Highlight the bigger picture Help your mentee to connect their efforts with your firm’s success. Discuss how building relationships can drive growth, create opportunities for cross-selling and enhance career prospects. Benefits for both mentors and mentees An effective mentorship programme benefits everyone. Firms gain future leaders with technical and business development skills, while clients will likely experience better service through improved relationship management. For young accountants, developing these skills early can boost their confidence and open up potential avenues to career advancement. Mary Cloonan is Founder of Marketing Clever

Amid political pushback and regional divides, investment in ESG remains a long-term bet driven by sustainability, transparency and innovation, writes Dan Byrne Publicly, the battle over Environmental, Social and Governance (ESG) principles is heating up, and 2025 will be a make-or-break year. US President Donald Trump’s 2024 victory, buoyed by agendas dedicated to combatting so-called “woke capitalism”, has thrown a wrench into the ESG movement in the United States. But while some parts of the world are doubling down on anti-ESG sentiment, others—like Europe and Asia—are charging ahead with ambitious sustainability plans, so far unfazed by angry rhetoric elsewhere.  The conundrum surrounding ESG is that, for many people, it is all about politics. Much of the media will reinforce this viewpoint because it provides the juiciest angle, filled with conflict and the makings of a good story.  ESG goes much deeper than politics, however. The real decisions are made at quieter levels, where investment patterns continue and corporate strategies align with investor priorities. Although it may not be as juicy, this is the main factor fuelling success or failure in ESG.  ESG investing in 2025 When it comes to investing, there is one main conclusion: ESG isn’t going anywhere.  You may have read many news articles—particularly over the last 18 months—discussing divestment from ESG assets and the dwindling popularity of ESG among stakeholders. These stories are true, signalling that ESG is taking a beating in some quarters. If we zoom out, however, the numbers tell a different story.  As of late 2024, the global value of ESG assets is still expected to hit somewhere between $35 and $50 trillion by 2030, according to University of Chicago lecturer and Impact Engine Chief Investment Officer Priya Parrish, writing for Fortune last October.  In other words, the recent setbacks for ESG investment are small backflows, but the much more significant wave of overall ESG investment still exists.  Why the continuing surge? Investors are likely convinced that ESG-related investments are smart, long-term bets. Many of today’s ESG pillars involve adaptation, essential in governance thinking and good news for investors who always want clarity on how a company will succeed in five, ten or twenty years.  Even as critics argue that ESG is overhyped, woke or restrictive, a colossal chunk of capital remains, especially in Europe and Asia, where ESG investments are firmly entrenched.  Investors in the US will be much more cautious about ESG under Donal Trump’s presidency, but again, this is on the public political side, which we’ll explain more about below. ESG and politics The other firm conclusion is that the debate over ESG will not simmer down soon. Trump’s return to power in the US means that everything related to ESG will face even more backlash and legal headaches. These can range from limiting ESG considerations in federal contracts to questioning corporate motivations. The critics are loud and emboldened, and they will motivate anti-ESG movements elsewhere.  Will they succeed? It’s very iffy.  You might have heard that the bulk of the world’s population went to the polls in 2024, including the UK, India and the European Union (EU)—as a whole and within certain member states such as France. New governments with fresh mandates now exist in these places. Many will remain until about 2030, and most remain committed to ESG-related principles in some form.  The EU is doubling down, rolling out regulations such as the Corporate Sustainability Reporting Directive (CSRD) that demand greater transparency and accountability than ever before. In Asia, governments are leaning into sustainability to future-proof their economies.  The result? A fragmented world in which ESG is thriving in some places and under siege in others. Five main expectations So, are we likely to see governance professionals making key strategic decisions regarding ESG? Unfortunately, there is no clear answer here because each company’s ESG strategy depends on factors including its goals, industry and national stakeholder mood. However, we can make a few more general predictions right now: Regional divides will deepen. Europe and Asia remain ambitious about ESG and new regulations are coming into force. Meanwhile, the US and some emerging markets are grappling with political resistance. Expect the gap between these regions to widen, which is bad news for the boards of trans-Atlantic companies. Suddenly, they must ensure their business pleases two very different political regimes.  Transparency will require upskilling. Many companies, particularly in Europe and Asia, will realise the need for new expertise on boards and executive teams. This is the only way they can hope to comply with the new reporting regulations they face. Because of this, ESG-related training will become more crucial.  Tech will lead the charge. Artificial intelligence and blockchain are set to revolutionise ESG reporting. Think real-time monitoring of supply chains and automated sustainability audits. The future is digital because digital can make massive tasks more manageable, enabling companies to report with great depth and confidence.  “Hushing” will be the new ESG language in the US. How does a company pursue ESG investment without angering its anti-ESG government? The answer is hushing, which means being quiet on a particular issue, no matter how devoted you are, for fear that being public will attract too much unnecessary criticism. Corporate activism will rise: Whether or not companies and politicians like it, the most polarised attitudes around ESG will mean more activism among investors. Boards must be prepared for this because aggressive activism can sometimes threaten their entire agenda. The story of ESG is being rewritten in real-time. The loud political pushback in the media starkly contrasts with the continuing investment in sustainability, accountability and transparency.  Navigating all this is a considerable challenge for businesses, but there is also an opportunity for those who adapt quickly, embrace innovation and stay ahead of evolving regulations. Dan Byrne is Content Manager at The Corporate Governance Institute

Liam Cotter charts the road ahead and critical importance of data for Irish organisations preparing for the AI revolution Right now, many organisations are experiencing caution, confusion—or both—in relation to artificial intelligence (AI). They are unsure about generative AI (GenAI), how it differs from previous AI iterations, and whether it can add value for them. With the first milestones of the European Union’s AI Act due to come into force in February 2025, focused on prohibiting AI systems posing unacceptable risk, organisations are concerned about falling foul of regulation. They are keen to ensure that any AI model introduced to help their business, undergoes rigorous testing to ensure it is fair and doesn’t have bias baked in. There are also more generalised fears regarding the cost of moving too quickly and developing the wrong solutions, however, as well as the “opportunity cost” of moving too slowly and thus failing to capture the benefits of the right opportunities. Data-based decisions Regardless of what stage an organisation has reached in its adoption of AI and GenAI, one thing holds true: the key to success is data. The only way to ensure quality AI outputs is to provide quality inputs. The way we manage and store data for the AI age differs from how we have done so in the past. Thus, even though the same fundamental rules apply, your data capture and entry systems may not be robust enough to handle AI demands and this could put you at a competitive disadvantage. Part of the problem with readying your data for AI transformation is the sheer amount of hard work involved, which may not appear not to offer a lot of value. This is because this work involves run-of-the-mill data generated from day-to-day operations. The key to the successful adoption of AI tomorrow is ensuring everybody in your organisation is aware of data management today. It is about ensuring everyone is measuring the quality of their data right across the organisation so they can stand over what it presents. For organisations that previously placed little value on the data they generate, this shift will require a culture change. It may also require different parts of the organisation to pool data—such as combining sales and stock databases rather than keeping them siloed, for example. In companies involved in mergers and acquisitions, it means ensuring you fully understand your data's lineage. The time to act is now The past 12 months have seen a growing realisation among organisations of the potential importance of AI as a lever for competitiveness. It is increasingly viewed as a valuable tool to drive digital transformation, enabling them to become more flexible, be faster to market, provide a better customer experience and more. Most of what AI will do has yet to be “dreamed up”. To put its scale in context, somewhere in the world, a data centre—the building block that powers the AI revolution—opens every two days. Organisations need to act to keep up. The first step is understanding the regulations and timeframes that are being rolled out under the EU AI Act. Next, identify use cases and develop them. Experiment—and if you are going to fail, fail fast. Get involved and discover the value in AI. People-powered data Understand the behavioural risks, too.  A lot of the work involved isn’t about technology at all. It’s about people. You can introduce the best technology in the world, but it's useless if staff don’t collect, curate and manage their data correctly. Everyone in your organisation must be able to stand by the accuracy of their data, which means good data practices must be applied to all business processes. In many organisations, this means investing in data capabilities, including staff training, and appointing a Chief Data Officer responsible for driving data literacy and good data management practices throughout the organisation, from the bottom to the top. To succeed, data management must be seen as a core, valuable component of what everyone does, regardless of their role. Break down the barriers Barriers to achieving effective AI readiness include an organisational culture that hasn’t yet caught up with the importance of data, allied to poor systems and processes that ensure people don’t understand the implications of getting it wrong. The real barrier is, however, that all of this takes work. Readying your data systems for AI is a pain, and sometimes, people can see no value in it. Once you can stand over your data, knowing it is of good quality and understanding its lineage, your organisation will likely be in pretty good shape because you can then move on and digitise your key business processes with confidence. The AI revolution starts and ends with data. Don’t underestimate the effort required to get good quality, well-managed data. It is the foundational work that cannot be avoided. Equally, don’t underestimate the impact. Once you have good data systems in place, you can confidently move forward and capture the full breadth of AI benefits that await.  Liam Cotter is Technology Practice Lead at KPMG

A strong organisational culture drives performance, retention and reputation. Laura Magahy outlines how to shape and sustain culture for competitive advantage Organisations ignore culture at their peril. We need only look back to the global financial crisis and recent controversies across several charity and public sector institutions to see the results of weak organisational culture. Peter Drucker may have never actually said, “Culture eats strategy for breakfast”, but Ford Motor Company President Mark Fields certainly did when he put it on his office wall in 2006. This is much more than a catchy slogan. It underlines a critical truth: no matter how well-crafted a strategy might be, it will fail if the culture in an organisation doesn’t actively encourage its people to live it. In short, without a coordinated framework for supporting a culture that will drive the company’s vision forward, achieving it will not be possible. Conversely, organisations with a strong, positive and supported culture enjoy significant benefits, including improved performance, enhanced employee recruitment and retention and better overall reputation. The cultural wake-up call The 2008 global financial crisis cast a spotlighted cultural failings in financial institutions as a key contributing factor. By 2012, corporate culture began to be seen as a key strategic element to prevent future crises. In 2018, the Central Bank of Ireland conducted a behaviour and culture review of Irish banks. What followed was the establishment of the Irish Banking Culture Board, which was set up to drive cultural change in financial institutions. More recently, other high-profile scandals have led a number of public sector authorities, agencies and charitable bodies to look seriously at organisational culture as part of essential governance oversight and reputation protection. Defining and assessing organisational culture The challenge facing organisations is how to determine if they have the right culture and, indeed, what that culture should be. There is no identity for setting the ideal or target organisational culture. The nature of the individual organisation and the circumstances in which it operates are of fundamental importance and must be considered. For example, the culture required for a commercial, sales-focused organisation may be different to that of a public service provider; where a number of organisations are merging, they may need to define a new culture for the new entity; when a new agency is being established or has an expanded remit, they may need to reset their target culture. In all cases, the target culture must be aligned with what the organisation and its leaders want to achieve to support their mission, vision and values. Organisational culture, if not actively supported and monitored, tends to grow and evolve organically and frequently in unintended and unexpected ways. It is created through the behaviours that are displayed by both the top management and local leaders through their day-to-day actions. Four common culture types Broadly speaking, organisational culture will often fall into one of four general categories. Each is based on different value drivers, which depend on various factors, including whether the organisation is more internally or externally focused, how flexible and innovative it needs to be to deliver on its mission and what its risk appetite should be. Clan culture: Internally focused, promoting long-term cohesion, with core values of commitment, communication and staff development. Hierarchical culture: Also internally focused, prioritising efficiency, consistency and structure in the pursuit of a common goal. Adhocracy culture: Externally oriented, with a long-term vision; competitive, driven by innovation, agility and transformation. Market culture: Also externally focused, with a sharp emphasis on customer service, goal achievement, market share and profitability. In reality, most organisations exhibit a blend of these types. What really matters is if it is the right target culture for what the organisation needs and, if not, what the right one would be. Characteristics of strong vs. weak cultures Strong organisational cultures typically exhibit traits such as: Honesty and transparency; Strategic and forward-thinking approaches; Respect and accountability; Adaptability and reliability; and A shared sense of purpose. In contrast, weak cultures are often characterised by: Siloed thinking; Short-term focus; Low employee morale; High staff turnover; Over-concentration of power; and Lack of trust and engagement Cultural variation across departments It should be emphasised that uniformity of culture across different parts of an organisation is not necessarily critical for mission delivery. As long as the people within the organisation are aligned with the same goals and values, then cultural variation or sub-cultures across departments and divisions can co-exist. For example, adhocracy may suit a research and development department, while the sales operation may find a market culture more appropriate. As long as they share the behaviours and values of a strong, positive culture, they can work together in harmony or at least in a mutually supportive environment. Laura Magahy is Head of Public Sector Consulting at Forvis Mazars