Des Peelo explains why Chartered Accountants have a responsibility to work hard at good communications.Accountants produce figures; that is our professional function. However, the ability to analyse and communicate those figures is the important role. The circumstances that give rise to the necessity of a report or analysis obviously range widely, but all result in the compilation and sharing of information to be understood by others.If you are in an accounting position and want the world to understand and appreciate your good work, remember that accounting figures – no matter the circumstances – are no more than an outcome and are not in themselves a decision, a conclusion or an explanation.Figures are just that, figures. They carry no intrinsic knowledge or purpose. The real skill for a Chartered Accountant (and in my opinion, we are not good at it) is to present an understandable interpretation and communication of the figures.The higher or greater the decision to be made in business, and sometimes in politics, the more the figures will influence the decision. In my experience, however, you cannot assume – even at the highest levels of business or political life (or, for that matter, in a courtroom) – that all are capable of looking at an array of numbers and knowing what they mean.Financial illiteracy is widespread and rarely admitted. I believe that this illiteracy explains many poor business and economic decisions. It is up to us as Chartered Accountants to work hard at good communications, and as a skill, it should be top of the continuing professional development agenda.In presenting figures, remember the audience. What is the purpose of compiling the figures? Who will read them and what is expected of the audience having read the figures? This last question is most important of all. The accountant must be very careful indeed when it comes to interpretation and presentation as the outcome decision, based on the figures, may be significant capital outlays, a court judgment, a misdemeanour identified, a monetary claim pursued, and so on.What sometimes gets lost in translation is the difference between presenting facts and presenting conclusions. It is important to know and understand whether the accountant, in presentation, is being asked to present facts for the audience to make a decision or draw a conclusion, or whether the accountant is being asked to make that decision or conclusion, as supported by the facts in the presentation. A muddled financial analysis without a clear purpose is of little help to anyone, but in my experience, this is a common scenarioThe audience is not there to be impressed by the detailed calculations or workings in the presentation. A straightforward one- or two-page summary should clearly state the outcome as to the purpose of the presented figures. The detailed calculations or workings should always be shown as appendices and cross-referenced in the summary.Compiling and interpreting figures usually involves making some assumptions. These too should be listed in a separate appendix. Figures are only as good as the likely validity of any assumptions underlying them. Outcomes do not always have to be precise. A range based on valid assumptions such as ‘best’ and ‘worst’, or ‘high’ and ‘low’ is often wise as singular figures, in themselves, can give an impression of being definitive.An enduring bugbear in poor presentations is the numbering of paragraphs. The use of sections, sub-sections and Roman numerals can end up with the likes of “Paragraph 5,2(B)iv”. Most reports require cross-referencing such as “please refer to paragraphs 10 and 16 above”.There is nothing to prevent someone from presenting an entire report as simply paragraph 1, 2, 3 and so on. There can be interspersed chapters or section headings as the report goes along, but the simple numbering is continued. Some readers will be aware that simple numbering is common practice in Germany, the United States, and within multinationals and international organisations. This is standard practice when it comes to emails, as it allows for easily cross-referenced responses.Des Peelo FCA is the author of  The Valuation of Businesses and Shares, which is published by Chartered Accountants Ireland and now in its second edition.

The pandemic and Brexit both provide momentum for bigger government – but don’t expect any protestations from the public, writes Dr Brian Keegan.The late US president, Ronald Reagan, never tired of giving out about big government. It’s a crude measure of the influence of government, but the level of national debt gives us some indication of the gap between what it costs to run a nation and what that nation can legitimately collect in taxes from its citizens.National debt suffers from spikes and fluctuations from wars, recessions and – as we are now seeing – pandemics. Such things are outside our control. But even when they are within our control, the national debt can grow unexpectedly. Despite Reagan’s protestations, the US national debt grew almost threefold during his eight years in office.The current pandemic will not grow the national debt of either Ireland or the UK by a comparable amount, but that is a factor of the scale of the existing national debt. Perhaps a better way to assess the impact of government is to look at the number of government agencies we now must deal with. Ireland’s Comptroller and Auditor General has almost 300 departments and organisations to scrutinise during his audit and assurance work. The UK National Audit Office looks over 400 or so UK government entities. As if to catch up, the new Irish Government’s programme makes over 20 references to the creation of new agencies or to increasing the remit of existing ones.The creation of agencies drives public sector jobs. The Institute of Public Administration recently noted that public sector employment in the Republic of Ireland exceeded 300,000 back in 2018, thus restoring staffing to pre-great recession levels. Before the pandemic struck, public sector employment in Northern Ireland exceeded 200,000. While most of our fellow citizens in the public sector are involved in service delivery, a lot of them are involved in regulation.We are already seeing how the pandemic is driving government size. Over the past few months, much of the Institute’s advocacy work has been about brokering arrangements with government – both north and south – to make things like the Temporary Wage Subsidy Scheme and the Job Retention Scheme work better on the ground. Ensuring that these schemes work well is vital, but they take up time, eating into the capacity of both our members in business and our members in practice to deliver other added-value services. Other business supports like state-backed loan guarantee schemes are also going to bring an additional burden of compliance, assurance and red tape.Brexit too is providing momentum for bigger government. The UK Government is duplicating many control and regulatory functions that were previously unnecessary because of EU treaty arrangements or because they were within the purlieu of European institutions. This pattern is being replicated across Europe. For instance, the Revenue Commissioners were to hire 500 additional customs officers to do the additional cross-border trade checks along with apparently 750 in the Netherlands, 700 in France, and close to 400 in Belgium.By and large, business on the island of Ireland benefits from the degree of State regulation. Yet, its role in attracting and securing foreign direct investment by creating a safer investment environment can get overlooked. On the other hand, businesses do not exist to carry out paperwork. This tension was always there. What the pandemic has changed is the political appetite to increase regulation.I think any Reaganesque political campaign promising smaller government would be unlikely to succeed these days. Even if politicians were minded to rein in the regulatory horses, the pandemic has created a greater willingness among the general public on this island to be governed, as evidenced by the almost blanket acceptance of the strictures of lockdown.Dr Brian Keegan is Director of Advocacy & Voice at Chartered Accountants Ireland.

This is my first Accountancy Ireland comment piece as President. First off, I would like to say that it is a tremendous honour to be elected President of our Institute.I would like to thank my predecessor, Conall O’Halloran, for his exceptional leadership throughout a tremendously successful year. Conall can look back with great pride on his term in office.Bouncing backThe current priority remains one of public health but soon, the huge economic challenge of preserving jobs and rebalancing public and private finances will emerge. This has been made even more difficult by the constraints on both consumption and production.As we move to the next phase in continuing to suppress COVID-19, we as Chartered Accountants will have a pivotal role to play in helping to drive the economy forward and in generating growth.Working in collaboration with business, political leaders and the public sector, Chartered Accountants Ireland will be a strong supporter and advocate for the business community and the positive impact that a renewed economy can have for all in our society.I believe that our 28,500 members working in leadership, finance or advisory roles throughout Irish business will play a key role in kick-starting the recovery and ensuring that businesses bounce back strongly.Priorities for the year aheadAs President, I want to harness the ability, experience, and expertise of our membership network to support economic recovery in the aftermath of the pandemic.The strengthening of our role with the public sector will be the first of my key themes for the year. I see our profession having a much stronger role to play here.The second priority will be maintaining and enhancing the relevance of the Institute to our members from the start of their career through to retirement. We must stay connected. It is good to feel part of something, to feel a belonging to the family that is Chartered Accountants Ireland. I am proud to belong.Members will see that this sense of belonging and active participation is at the heart of the Institute’s new Strategy24, the document that will direct our work over the next four years.As Strategy24 is rolled out, members will see their Institute become more digitally driven. We believe that members will find a greater sense of connection and will see the Institute focus on being a financially sustainable, digitally-enabled organisation with an agile culture that supports innovation and collaboration.My final priority is access to our profession for potential students. We will continue to work to highlight the opportunities available to a new generation of potential trainees within an innovative, forward-looking profession.Looking forwardFollowing May’s annual general meeting, the gender balance of the Institute’s Council now stands at 50:50. I will seek to promote balance more widely across the Institute. It is worth noting that the overall membership is currently 42% female and 58% male.I am looking forward to the year ahead. Of course, there are challenges – but we have a great team at the Institute, and we will drive ahead. I am counting on your support as we work for members across the island of Ireland and beyond.Paul HenryPresident

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

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

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