News

Diversity and inclusion have become part of business strategy, but how do you measure their success? Mark Fenton outlines the key areas organisations need to assess when determining the effectiveness of their D&I initiatives. Diversity and inclusion (D&I) have shifted from being two HR buzzwords to key components of business strategy for many of the world’s best and most innovative companies. Businesses recognise that all organisations share the same three strategic challenges that either inhibit or enable success over the longer term: How to hire, retain and develop top talent; How to understand and connect with clients; and How to outsmart the competition. There has been a myriad of initiatives developed for organisations seeking to embrace and integrate diversity and inclusion programmes into their office culture, with a view to create a more attractive brand that will appeal to future top talent, as well as encouraging and strengthening the existing team. It will also enable organisations to understand clients better, and generate an increasingly innovative workplace to get the jump on competitors. Measuring success However, despite all of these initiatives, less attention is being paid to providing organisations with specific success measures for their D&I programmes (including quantitative and qualitative key performance indicators [KPIs]), and identifiable changes that should follow. Here are nine areas that are worthy of consideration when looking to measuring the success of your D&I initiatives. These are best assessed over time, across several diversity areas, such as gender, ethnicity, disability, sexual orientation and age (with the consideration that some may be subject to restriction around data capture availability).  Representation Look at representation in areas across governance (boards, committees) and hierarchical levels. Look at the promotions that have been attained and by whom. Recruitment Assess your applicant pool, who is brought in for an interview and who receives a job offer. It’s important to also assess the diversity of your selection panel. Remuneration Conduct a gender pay gap analysis of all employees. Financial savings Analyse the budget savings attributable to your D&I initiatives such as the utilisation of remote working (which can reduce office footprint and associated costs), the promotion of internal talent (which can reduce hiring costs and talent turnover expenses) and the improved employer brand (which can be effectively generated through day-to-day engagement and word of mouth without expensive marketing campaigns). Employee turnover Assess employee turnover rates and career break returners following parental, care, illness, sabbatical or other leave. Employee resource groups Determine the level of engagement in employee resource groups. Training Check the completion of D&I training such as unconscious bias, inclusive leadership and cultural awareness. Also, investigate the level of access employees have to these programmes. Policies and procedures Assess the policies and procedures in the organisation to ascertain whether they are supportive of gender and minority groups, parental supports and workplace agility programmes including flexible and remote working, talent sponsorship and codes of conduct. Voice Collect feedback on your D&I programmes from employees (via staff surveys), customers (through net promoter scores), and suppliers (utilising supplier diversity policies). In parallel, KPIs can be applied that cover, for example, employee churn rates, performance ratings, employee engagement/job satisfaction, absenteeism, union feedback, grievances or industrial relations-related issues. This data can be further enhanced by overlaying the empirical research that correlates integrated D&I practices with improved financial performance and increased brand value. More than a buzz word An awareness of the power and influence of D&I on corporate culture in conjunction with a framework to tangibly measure and communicate its ability to overcome key business challenges around talent, clients and competitors make D&I much more than a ‘buzz’ issue within the corridors of HR. It is the business strategy for 2020. Mark Fenton is the CEO and Founder of MASF Consulting Ltd. 

Jan 23, 2020
News

Companies are not only talking about sustainability; they are also beginning to act. Elise McCarthy explains how companies can support the Sustainable Development Goals through their business activities. Companies are beginning to recognise the role they play in creating a sustainable society and how, by doing so, they are also driving business growth and productivity. Many organisations are looking at the Sustainable Development Goals (SDGs) as a guide. Any company considering how it can support the achievement of the SDGs through their business activities should begin with these five starting points Understand the SDGs In 2015, the world leaders under the United Nations adopted the Sustainable Development Goals for nations and businesses alike to solve the world’s most significant challenges by 2030. Seventeen goals address the global challenges we face by moving to eradicate poverty, promote peace and equality, allow sustainable prosperity and protect the environment. The SDGs are built on 169 targets, which are measured against 232 indicators. It’s a good idea to review the targets and indicators when considering which SDGs offer the most opportunities for your business. Understand your business Looking upstream along your value chain, where does your company source raw materials and staff? How much of these resources does it purchase? This type of information will indicate where your company can make a change and have an impact. By taking cues from the SDGs, your company can set down specifications for suppliers and the resources it purchases.  Alternatively, your organisation could look downstream along the value chain. What products or services does your company make and supply? Are your distribution or logistics as clean and efficient as possible? Could you recycle goods? Would redesigning some products or services make a significant impact on the SDGs? Look for opportunities  There are business growth opportunities in the SDGs. For example, one report identified $12 trillion in savings and new opportunities by achieving the SDGs. The goals are not just branding for what society is already doing; they are goals that require new thinking and an appetite to see change. They are meant to challenge us to think about the world we want to live in, to play to our strengths and to use our power to make a change – even if it is under just one goal. If we all play our part, we will get there. Engage employees These days, most people are interested in sustainability and are trying to implement changes in their personal lives. Tap into that interest and enthusiasm among your colleagues by helping them to play their part at work. Show them that, as a leading employer, the company is also thinking about making smart changes to practices and procedures, and that it wants to involve its people in the journey. This user-friendly guide to the SDGs can help with internal communications and awareness.  Decade of action In September 2019, the United Nations Secretary-General called for more leadership and local action within countries and among individuals to meet these ambitious 2030 goals. Every day events – fires, storms, drought, waste mountains and growing inequality – are reinforcing the urgency of this mission. The clock is ticking but we excel when we put our minds to it. Elise McCarthy is a Senior CSR Adviser in Business in the Community Ireland (BITCI). BITCI has published a detailed guide for business on the SDGs.  

Jan 19, 2020
News

Social entrepreneurs are a valuable and necessary part of society and economy, providing much-needed social and environmental change to communities. Fiona Smiddy outlines how accountants and finance professionals can help support these local social enterprises. Social enterprises are businesses whose core objective is to achieve a social, societal, or environmental impact. Poverty, climate change, anti-social behaviour, housing and health are just some of the problems that Irish social entrepreneurs are attempting to tackle. We need to embrace and support social entrepreneurs as they are a valuable and necessary part of society and economy. Social entrepreneurs often come from range of backgrounds. They tend to see a problem in their local community and devise an innovative solution to help. However, many will run before they can walk, carried by their passion and energy. Below are just some ways that accounting and finance professionals can support their local social enterprise. Provide mentoring services As accountants, we can lend an objective mindset and critical thinking to social entrepreneurs to ensure their enterprise is set up for long-term growth. As in many entrepreneurial scenarios, the main workload often lies with the founder. However, it can be difficult to self-critique when your passion and belief in the solution to your social issue is so strong. A second set of eyes and ears, or the offering of a hand to review a business plan would be welcome support. Improve access to finance Due to their nature, social enterprises often seek alternative methods of funding. EU and government-backed programmes such as the Social Enterprise Development Fund can go a long way to support them. This €1.6 million fund was created by Social Innovation Fund Ireland (SIFI) in partnership with Local Authorities Ireland and funded by IPB Insurance and the Department of Rural and Community Development. There is opportunity for similar funds to be created. With the right financial backing, combined with supportive mentoring programmes, social enterprises can provide much-needed resources to local communities. Open a co-working space With the high costs of rent, many social enterprises are born and run from kitchen tables and inefficient workspaces. Your workplace could provide a platform for social change by opening a boardroom or co-working space on a part-time basis to local social enterprises. Provide training through CSR programmes Corporate Social Responsibility (CSR) programmes can go a long way to support social enterprises. Many of the skills that accountants and finance personnel possess are in demand by social enterprises. Work with your employer to identify training needs of local social enterprises and develop training programmes to assist these mission-driven businesses. Make connections and provide visibility We need more social entrepreneurs to help us find new routes toward social improvement. If you know a social enterprise through your connections or in your local community, use your platform to promote them either via LinkedIn or other social channels. You can even invite them into your workplace to promote their product or service. Social entrepreneurs are drivers of positive change. As accounting and financial professionals, we play a part in their success and must support them in creating positive change for all of us. Fiona Smiddy ACA is the Founder of Green Outlook.

Jan 19, 2020
News

To promote sustainable finance, the finance industry must incorporate environmental, social and governance factors into investment decision-making. Orla O’Gorman explains how companies can enable investors to invest in sustainable, socially responsible assets. The climate crisis is the most impactful and far-reaching agent of change that we will see in our lifetime, the impact of which is comparable only with, perhaps, the industrial revolution. It will permanently alter how our society and economy operate – that includes our financial systems and how capital is allocated. We have already seen the world’s largest asset manager, Blackrock, asserting that climate change will be the focus of its new strategy and that it will reshape the industry as we know it. We have also seen the world’s largest sovereign wealth fund, Norges Bank, divest entirely from all oil and gas exploration. To promote sustainable finance, the industry needs to incorporate environmental, social and governance (ESG) factors into investment decision-making, supporting the allocation and transfer of capital towards sustainable and transitioning assets. Stock exchanges are at the heart of the global financial system and will play a vital role in enabling this transfer in an efficient, transparent way. Two-pronged approach As part of Euronext’s new strategic plan, Let’s Grow Together 2022, we have developed an ESG strategy with a two-pronged approach:  Sustainable practices (what we do internally); and Sustainable products (what we offer externally). Internally, our goal is to embrace the latest and greatest methods of sustainable working. Externally, meanwhile, our goal is to develop and support sustainable products and services for issuers, investors and the financial community, and we have already launched two initiatives in support of this. The first initiative is Euronext Green Bonds, which will allow investors to discover, compare and participate in sustainable investment opportunities and allocate capital accordingly. The second initiative, the publication of our ESG reporting guidelines for issuers, enables listed companies to communicate effectively to stakeholders about their current work in sustainability and assists them in addressing ESG issues with investors that will encourage them to invest in sustainable, socially responsible assets. The guidelines also provide a basic framework for ESG strategy and reporting. Looking to the future We hope that, by empowering issuers and investors with these products and tools, we can make the transition to a sustainable economy and finance a future of which we can be proud.  Orla O’Gorman is Head of Equity Listing Ireland at Euronext.

Jan 19, 2020
Management

Sarah Daly explains how introducing some new time management methods into your day can help you manage your time more efficiently. In business, time is definitely money. Yet, while learning to prioritise competing demands is a skill that I have tried to develop over the years, like many business owners and managers, I find that unless I consciously manage time, there is always a risk of spending too many hours working ‘in’ the business and not enough hours working ‘on’ it. Talking to other accountants, I know that I’m not alone with this problem. In a busy office where clients phone in with urgent requests throughout the day, it is easy to fall into a pattern of running from one crisis to another. While some of these demands are genuinely urgent and have to be dealt with there and then, others are less urgent, and some – like spending too much time on email – can be a habit that, although neither urgent nor important, can take up a significant chunk of time. The key to good time management is learning to understand how you and your team spend your time each day so that you can identify opportunities to improve efficiency. The idea of analysing tasks and learning how to allocate time appropriately is not new. In his book, The Seven Habits of Highly Effective People, management guru Stephen Covey explains that by categorising tasks into those that are ‘important and urgent’, ‘important but not urgent’, ‘urgent but not important’, and ‘not urgent and not important’ can help you get ahead of the game. Categorise First thing is to decide what tasks go in which category. Where does your daily check-in with staff go on the list? How about returning client calls? Tasks that are both urgent and important should be done first (obviously) while those that are in the ‘not urgent and not important’ category may not need to be done at all. At least not by you. Tools to help Today, there are tools that can help analyse how you and your team allocate your time, from monitoring time spent on social media to analysing time spent on particular projects or clients. One that I particularly like is the MyHours time tracking solution which has helped me to identify my most valuable work and eliminate time-wasting activities. Dedicated email time Another technique I find useful is having two slots a day for email — one in the morning and one toward the end of the day — rather than allowing email to constantly interrupt me. For me, email is usually in the ‘important but not urgent’ category, but your emails might be important and urgent, so adjust your email time as needed. Outsourcing It is worth reminding yourself – and your clients – that time-consuming administrative tasks can often be outsourced to specialist service providers, freeing business owners and managers to spend more time working 'on' rather than 'in' the business. What means the most to you? Finally, at this time of the year, it is worth reflecting on whether the things that mean most to us – like spending time with family and friends or looking after our health and wellbeing – are sufficiently high priorities on our ‘to do’ list, falling into the ‘important and urgent category’. If not, now is the time to get them on to our list of priorities for the coming year. Sarah Daly is Founder and CEO of GroForth.

Jan 10, 2020
News

By Neil Gibson While the economic outlook for Ireland is slightly cooler than the last two buoyant years, it is not entirely unwelcome as the pressures of fast growth are beginning to become more visible. Here are 12 predictions for the economy in 2020. Prediction 1: GDP will rise by 3.2% Strength in the domestic economy resulting from a combination of job growth, real wage growth and government spending is projected to compensate for weakening global conditions. GDP is expected to be above trend at 3.2% in 2020. Modified domestic demand, which strips out the main distortions in Irish GDP, is forecast to grow at a similar rate (3.1%). Ireland will, therefore, remain near the top of the European growth charts. Biggest forecast risk: A global slow-down. Prediction 2: Employment to rise by 1.7% Job growth is expected to remain robust in 2020 with 40,000 net jobs for Ireland projected, a slight reduction on the 56,000 in 2019. Consumer and government spending will boost domestic businesses and strong migration will allow firms to keep recruiting. Biggest forecast risk: Skills gap and housing shortages prevent firms getting the talent they need. Prediction 3: Wage growth at 3.5% Wage growth has picked up over the last 18 months as labour supply tightens and skills gaps emerge in key sectors. The growth is also partly compositional with more hiring at the senior level, pushing up the overall average wage. Overall, average wage growth is projected to slip back very slightly from its 2019 level to 3.5% in 2020. Biggest forecast risk: Wage inflation accelerates as firms struggle to get the labour they need. Prediction 4: Consumer spending growth of 2.4% Despite signs of ebbing confidence in consumer surveys, the rate of job and wage growth should support a healthy 2.4% growth in consumer spending in 2020. With the national savings ratio at a healthy level and confidence largely restored in the property markets, fears over Brexit and the global economy appear to be only having a modest effect on consumer behaviour. Biggest forecast risk: Consumers’ confidence, which is already fragile, finally impacts behaviour and people choose to spend less. Prediction 5: Net migration of 40,000 Ireland remains a very open economy with fluid labour movements both in and out of the country. Net migration is projected to reach 40,000 in 2020 with Ireland’s economic strength and improved relative attractiveness as an English-speaking, cosmopolitan location further boosting inflows. This flow will continue to drive demand in the economy but will add to the pressure on public services and Ireland’s infrastructure. Biggest forecast risk: Insufficient housing supply leads to further rent appreciation which, in turn, deters migrants from coming to Ireland. Prediction 6: Inflation of 1.6% It is one of the great economic puzzles – how has inflation remained so low? With rising wages and a strong economy, most economic models would project a rise in headline inflation. A depreciation in sterling has helped keep Irish inflation down but high levels of competition may also have mitigated against firms increasing their prices. It may also reflect the application of new technology and data analytics as cost control measures. The twin conditions of healthy job/wage growth and low inflation has made it a very strong 18 months for domestic businesses. Biggest forecast risk: Inflation picks up sharply as wage increases lead businesses to feel confident about price increases and a wage/price spiral begins. Prediction 7: House prices to increase by 3.2% House price growth has slowed markedly in the last 12 months. Unusually, this is in not in response to a weakening economy but partly because of the lending rules that have placed a harder ceiling on borrowing. This has been a welcome outturn for the Irish economy overall, though it has not been helpful in accelerating the development of much needed additional housing supply. Our forecast is for prices to pick up slightly from the current growth rates, reflecting demand and affordability in the wider economy. Biggest forecast risk: Despite lending rules, increased cash investment triggers a rapid step up in prices. Prediction 8: Construction inflation of 7% Because of the strong overall economy, construction will continue to perform well with domestic and commercial demand remaining strong. In addition, increased levels of government capital spending are providing a further boost and, consequently, inflation in the sector is very high. Cooling global conditions may take a little heat out of the input and material prices but wages look set to continue to increase. Biggest forecast risk: An uptick in domestic building, coupled with infrastructure spending and further commercial development, creates a ‘perfect storm’, pushing construction cost up even further. Prediction 9: Housing completions: 24,000 Despite net migration of 34,000 into Ireland in the year to mid-2019 and a long-standing stock shortage, housing completion levels remained well below the required level at the end of last year. A moderation in house price growth, opportunities elsewhere in the construction sector and a challenging planning and regulation environment continue to work against a more marked acceleration in house building. Fortunately, the constrained supply has not resulted in an unwelcome sharp pick-up in prices. Biggest forecast risk: Sluggishness in granting permissions and significant opportunities elsewhere in construction lead to lower completion levels. Prediction 10: Tax receipts: 4% Tax receipts have been very robust across all major categories. Though corporation tax increases have made the headlines, income tax and VAT have also grown strongly, reflecting the broad-based economic growth under way in Ireland. It remains hard to predict tax receipts as Ireland’s fortunes have considerable exposure to a very small number of firms, but the forecast for continued job growth and healthy wage increases mean a very healthy 4% is our central forecast for 2020. Biggest forecast risk: Adverse global conditions impact the small group of firms that contribute a large proportion of corporation tax receipts. Prediction 11: Government balance at 0.1% of GDP That the Irish economy is back into general government surplus is both a cause for celebration but also somewhat concerning. The €175 billion debt mountain remains almost untouched, despite the sustained period of fast growth, making the rather cautious Budget set by the Minister for Finance both understandable and advisable. The forecast of a very modest surplus this year reflects uncertainty over the volatile corporation tax receipts and the long list of calls on government budgets across most areas of public service. Biggest forecast risk: Demand for investment in public services, partly driven by population growth, leads to higher levels of government spending. Prediction 12: Unemployment rate of 4.6% Unemployment has been falling steadily for seven years since its peak of over 15%. Employers are finding labour harder to find, though even at the 4.6% rate projected for 2020, it is still some way from being considered full employment. The steady flow of migration and demographic factors mean that the strong job forecasts will not translate into an equivalent fall in unemployment. Nevertheless, we project it will continue to fall to its lowest rate since 2005. Biggest forecast risk: A global slowdown eases hiring and with strong migration flows, unemployment levels move into reverse and start to rise again. (The predictions assume the avoidance of a no-deal Brexit in 2020.) Neil Gibson is the Chief Economist in EY Ireland.

Jan 03, 2020
Ethics and Governance

Boards increasingly need to show how they measure their organisation’s culture, but the key information is likely already available within the business, writes Ros O’Shea. The South Sea Islanders have a word, “mokita”, which translates as “the truth that everyone knows, but nobody speaks”. Other notable definitions of culture include “a system of beliefs, shared values and behavioural norms”, “the way to do things around here” or even the “mood music” or “resting heart-rate” of an organisation. Whatever the definition, stakeholders, still shaken by a litany of corporate scandals including endemic ethical failures in financial markets, now recognise that, as Peter Drucker said, culture does indeed eat strategy for breakfast – and arguably for lunch and dinner too. Their demands have led to concerted efforts in recent years to rebuild trust and restore integrity to the heart of the enterprise. Figure 1 highlights some of these welcome developments, which go way beyond extending the rule book or adopting a tick-the-box approach to compliance. It seems everyone has seemingly landed on the same page, which says: you can have all the rules in the world but there is no substitute for character. Much has been written already about how to cultivate character and foster a values-based culture. Indeed, Chartered Accountants Ireland published my book on the topic, Leading with Integrity, in 2016 and has issued several related guides and research papers since. As organisations seek to embed cultural change, the question everyone is now grappling with is: how do you measure it? How can those charged with governance determine if the tone from the top is being cascaded through the ‘muddle in the middle’ and reflected via the ‘echo from the bottom’? Is it possible, with any degree of accuracy, to properly calibrate an organisation’s mood music or gauge its steady-state operating rhythm?  The answer is yes. My ‘5 Organisational Culture Caps’ (5OCC) approach aims to do just that. Loosely based on Edward de Bono’s ‘Six Thinking Hats’ system (where coloured hats represent different modes of thinking), with 5OCC, each cap is assigned to one of five different stakeholders. By donning each cap in turn and thinking about culture from each of these perspectives, a holistic view is developed of how your espoused values align with how your organisation behaves towards these key constituencies in practice. Four caps are pre-assigned – your customers, staff, shareholders and community all deserve their own headgear. You get to pick who wears the last cap, and your choice is likely to be heavily influenced by the sector in which you operate. For example, financial services firms may well pick the regulator; key vendors may be a valid choice for those downstream in the supply chain; whereas for other organisations, agents or brokers, or other business partners on whom they rely to deliver products or services, may get to wear a cap. Once you determine the full suite of stakeholders, the next step is to select key metrics that best capture their unique expectations of your organisation’s culture. Let’s don each cap in turn. The customer Arguably the single best way to actively test the consistency of stated values with the customer experience to attempt to buy the product or the service. Or you could try to make a complaint and follow what happens. Other key cultural indicators from the customer perspective include: Customer surveys; Net promoter scores; Complaints statistics; Feedback from customer focus groups; Social media and press coverage; Litigation and claims; and Awards and ratings. The staff Here, staff is defined in its broadest sense (i.e. from the boardroom to front-line employees). Again, boards should recognise that only so much governing can be done within the confines of the boardroom, and one of the most effective means of assessing the organisation’s tempo and temperament is to get out and about and engage with staff at all levels. Ideally, this should be done in informal ways and settings (such as townhalls or listening lunches, for example) so that site visits don’t become ‘state visits’. The HR department will be a deep reservoir of information to help you understand and monitor the extent to which values are truly lived across the organisation. There are many possible metrics under this heading, some of which are set out below: Staff surveys, engagement indices and culture audits; 360 reviews of senior management and board evaluation surveys; Remuneration and incentive policies; Ethics training and communication strategies, and their effectiveness; Statistics on staff turnover, absenteeism, safety and disciplinary actions; Whistleblowing and grievance reports, and relationships with unions; Diversity and inclusion data; Recruitment processes, succession plans and promotion decisions; Integrity awards or similar; and Online employee feedback (e.g. via Glassdoor and exit interview notes). The shareholder The nature and extent of shareholder engagement will very much depend on the type of organisation, and metrics will need to be calibrated accordingly. For private, charitable or state-owned firms, it may be a relatively straightforward process to monitor the strength and success of the relationship with the organisation’s owners, trustees or relevant government department – most likely by being party to regular discussions. Some of the following metrics may also be relevant and will certainly be pertinent for companies with a larger and more dispersed share register: Governance structures and board performance; Correspondence and engagement with key shareholders; The AGM experience; Internal and external audit reports; Independence and competence of risk, compliance, audit and legal personnel; Investor or analyst reports; Industry benchmarks; and Transparency and disclosures of financial and other reports. The community Here again the relevant community may be local or global, or somewhere in between, and metrics will need to be commensurate with the organisation’s scale and footprint. Particulars will differ but overall, they will aim to measure the extent to which the business is contributing to – and valued by – the communities in which it does business. Specific metrics are more elusive under this heading, but assessment of culture wearing a community cap will include discussions around: CSR activity in the community; In-house ‘green’ initiatives; CSR ratings and ESG credentials; Sustainability reporting; Progress towards committed UN Sustainable Development goals; Carbon footprint, water use and waste; and Local press coverage. A.N. Other As outlined earlier, you get to pick who wears the fifth cap. If, for example, suppliers are an important stakeholder group for you, measures such as promptness of payment, supplier audits and feedback from key vendors would be important to consider. If the regulator is to wear the cap, relevant areas of focus could include the number of fines, regulatory breaches, risk appetite exceptions, inspection reports and the general tone of correspondence. Metrics can also be devised for any other stakeholders by considering what aspects of your culture are likely to matter most to them. Such metrics may best be ascertained by directly canvassing their opinions. The most helpful aspect of the 5OCC approach is its practicality. Most, if not all, of the information required for the various measures will already exist in your organisation. It is simply a matter of collating and synthesising these valuable, but currently disparate, sources of data to provide a five-way mirror back to the organisation showing how the espoused values are truly living and breathing. There is no doubt that what gets measured gets done. Metrics matter. Boards and directors will increasingly need to prove and publish how they measure and monitor their organisation’s culture and I hope this model is a helpful aide in that endeavour. But again, we must remember that there is no substitute for character. All the KPIs in the world won’t displace the board’s most important role, which is to ensure they have the right leadership team who will do the right things for the right reasons. You can’t cap that.   Ros O’Shea FCA is an independent director and governance consultant.

Dec 03, 2019
Strategy

Visualisation tools and techniques can help Chartered Accountants unlock the value in a company’s data. By Richard Day and Alannah Comerford Excel has been the tool of choice for Chartered Accountants for the last two decades. While it has served us well so far, the capabilities of newer tools and the proliferation of data requires us all to look beyond our love/hate relationship with Excel. We have all experienced Excel hell in the form of crashing spreadsheets, combing through countless rows of data in the search for an anomaly or the seemingly endless wait to refresh pivots or charts created on large datasets for management reporting. The importance of data and the vital part it plays in the role of a modern-day accountant has been recognised by Chartered Accountants Ireland through the inclusion of data analytics in the new FAE syllabus. This is an acknowledgement that engagement with data is essential if Chartered Accountants are to keep pace with technological advancements in business. It also ensures that accountants maintain their central role in the business community. This syllabus will bring the new crop of qualified Chartered Accountants into contact with Tableau, Alteryx and UiPath. It is fitting that this series of articles begins with the visualisation opportunities provided by tools such as Tableau. Beyond Excel Companies are gathering more data than before, and the need to consume and analyse this data is changing the business landscape. As a result, accountants need to adapt. Proficiency in Excel is no longer enough to derive value from data. The concept of data visualisation has the power to overcome some of the challenges in handling large volumes of data and can have a transformative effect when applied successfully. Many accountants fear that data analytics and visualisation are relevant only to IT or data professionals, and that advanced technical skills are required. This is not the case. Many of the market-leading tools are user-centric to allow citizen-led development. The interface is easy to understand and there is a large library of default charts, allowing users to quickly develop interactive dashboards. Data visualisation tools make possible, with a few clicks of a mouse, what previously would have required advanced knowledge of coding in Excel. A relatively modest amount of digital upskilling and time commitment can unlock significant gains. A game-changer There are countless benefits to using data visualisation, but it essentially facilitates the focused and targeted analysis of information by allowing the user to customise what they see. The power of data visualisation is such that a user can create an analysis using a simple dataset – a list of invoices, for example – and visualise this information using any attribute present in the data. One could view the data by period, day, product, customer, approver, or any other characteristic present. Some of this is possible in Excel, using charts or your favourite pivot table. The difference with using a visualisation tool is that if you pick a specific period or approver, for example, all of the other data as visualised would update dynamically to show the information for that period or approver. The knock-on effect is that unusual trends or items tend to be relatively easy to find. In a data-rich world with countless reports, where we may not know specifically what we’re looking for, these analyses really do change the game. Unlocking value Data visualisation can be used to re-invent management reporting and capture insights visually, thereby enhancing the stakeholder experience. It also brings the benefit of repeatability, allowing delivery of reports in a consistent and efficient way using template dashboards that are refreshed with new data. Interactive dashboards provide the ability to drill down into the data and facilitate root cause analysis. From an audit perspective, it has a clear use in enabling full populations rather than sample-based approach to testing. It also allows the user to generate insights and take a more proactive role in suggesting meaningful improvements or courses of action. Chartered Accountants are valued in the workplace as problem-solvers with an ability to analyse business problems and produce effective solutions; this can now be achieved through visualisation using a data-led approach. While visualisations can unlock the value in a company’s data, the quality of a dashboard is only as good as the data used to create it. An awareness of data quality and data governance is therefore essential, and this should align well to the skills and training of Chartered Accountants.   Richard Day is Partner, Data Analytics & Assurance, at PwC Ireland. Alannah Comerford is Senior Manager, Data Analytics & Assurance, at PwC Ireland.

Dec 03, 2019
Ethics and Governance

Níall Fitzgerald explains how to achieve consensus, do your duty, and be yourself as a charity or non-profit trustee. There is something exceptional about those who volunteer their time, skill and expertise to a board, or sub-committee, for the benefit of a cause they feel passionate about. As Nelson Mandela put it, “there can be no greater gift than that of giving one’s time and energy to help others without expecting anything in return”. But being a board or sub-committee member (trustee) for a charity or not-for-profit organisation is not without its challenges. These challenges can present themselves around the board table in the form of disagreement or frustration as you strive to get things done. People skills and leadership skills will be called on in order to listen effectively and convey concern, constructively challenge and support the ideas of other trustees in order to achieve consensus. Difficult dilemmas Achieving consensus is not always easy, especially when resource constraints (financial or otherwise) impact the organisation’s ability to realise its strategic objectives. Difficult dilemmas can be tabled at board meetings, which can present challenges for the organisation and test the core values that compelled each trustee to volunteer in the first place. A classic example involves proposals to suspend services in one area to the detriment of some beneficiaries in order to ensure continuity in another. An avalanche of conflicting priorities around the board table can result in an impasse. Challenges like these can make a trustee grateful for a good governance framework. Such a framework can provide clarity on their duties and responsibilities to the organisation, including the various stakeholders it serves. There can be comfort in understanding the policies and procedures that ensure the collation and adequate flow of accurate information from the front-line service providers (both staff and volunteers) and senior management to the board. Such information results in better decision-making that is in the best interests of the organisation as opposed to any individual or group of trustees. Such a framework will also provide a welcome format for effective and well-chaired discussion at the board, and ensure that the right level of diversity, skills and expertise are enabled to inform the decision-making process. Rule of law But what about the rule of law regarding the trustee’s duties and responsibilities? An understanding of these rules will help channel a thought process towards what is important for the organisation. A trustee does not need a law degree to understand these requirements. Rather than feel overwhelmed, it is useful to first understand the organisation (including its vision, mission and values), its legal structure (e.g. company, trust, unincorporated etc.) and the area within which it operates. This process will highlight the laws and regulations that are most relevant for consideration. Figure 1 illustrates the types of legal and regulatory duties that apply to trustees. Notice that some overlap and they have a common design to ensure that the organisation is always the focus of consideration. Being involved as a trustee can be the gift that keeps on giving for the individual and the organisation. Challenges present opportunities for trustees to exercise values, apply skills, provide expertise, assess problems and inform decisions in a different way – for example, through the lens of life-changing consequences. A good governance framework and adherence to the rule of law will provide another useful lens to guide, rather than impede, trustees towards consensus on trickier dilemmas.

Dec 03, 2019
Spotlight

There are many professional benefits to donating your time to a non-profit organisation. Ciara Tallon outlines how you can enhance your career by volunteering your experience and skill. Over the last decade or so, the term ‘work-life balance’ has featured more and more in career conversations, and with millennials in particular. This need to make more of a balance often involves children, pets or parents but can also be a wish to carve out time for fitness, education and upskilling or volunteer work. According to volunteering.ie, 28.4% of adults in Ireland volunteer; that is over one million people. 65% of those who volunteered were over the age of 45. Half of all volunteering was work carried out directly by individuals (informal) rather than through organisations (formal). Getting started Look at what you have access to, be it a sports club, scout den, church or community group that could benefit from your experience. Talk to people on the side-lines at your child’s football match to find out who else is working in this sector and how they got their foot in the door.  It’s a good idea to look into your own organisation, as well. It may have some CSR initiatives and perhaps sponsor or collaborate with organisations in the not-for-profits. There may be room to leverage your connections to secure experience and exposure within these organisations.  For employers, volunteering by employees is increasingly recognised as a potential way to develop broader skills. A recent Accenture report highlighted that 76% of volunteers said they had developed core work skills while volunteering. Career benefits Through our career consultations, we have seen an increase in the number of members who view volunteering as a strategic stepping stone and career move. Members are beginning to recognise that a period of volunteering can be a shrewd investment in their career in more ways than one. The opportunity to develop new skills and strengths without it affecting current career plans can be of huge interest to members. Often a new group or organisation can challenge us differently and bring about fresh thinking, and this freedom from the confines of our day to day role can draw on untapped resources and spark our creativity to explore new strategies. It leads us to areas of abilities unbeknownst to us.  Members also have the opportunity to explore an area of work or change of sector without the risk of financial penalties in a try-before-you-buy scenario, avoiding the potentially costly mistake of focusing on just one sector. A role working with young adults or with older people may have been a life-long dream but often the reality bears no resemblance to expectations. The chance to do this in a not-for-profit on a voluntary basis can be a valuable buffer. The not-for-profit space has experienced a massive overhaul of its governance and risk processes so a fresh approach coming from outside of a not-for-profit field may be just what they need.  Perhaps the organisation in question uses state of the art systems or allows you the opportunity to oversee a team or group that doesn’t exist in your day-to-day role – they can all combine to broaden your skills set.   The last decade or so has seen an increase in the demand for governance and compliance in the not-for-profit sector to ensure robust ‘fit-for-purpose’ checks and balances. Chartered Accountants have played a key role in this area by taking on full-time positions within these organisations. For members who would like to transition into this sector, a voluntary, non-executive director or board of directors opportunity may fit the requirements and give that not-for-profit exposure.  Governance Those looking to make the move from traditional practice and industry roles into the not-for-profit space can often find the experience frustrating and difficult without any prior industry knowledge or exposure. Members who gain exposure to the not-for-profit sector even in an unpaid capacity can find that they gain that crucial exposure and CV-enhancing experience which can subsequently evolve into a long-term career investment that eventually pays dividends in the form of a paid role. These roles also offer the opportunity to develop new skills and give sectoral exposure, as well as provide additional networking and brand development potential.  Value to you and your career In 2017, there were over 14,000 volunteers registered with local volunteer centres and the online national database of volunteering opportunities (IVOL). These volunteers clocked up an incredible 480,000 hours of volunteering with an estimated economic value of over €10.5 million. Finally, whatever you are involved in outside of your working day has the opportunity to help you to broaden your views, opinions, expertise as well as gain invaluable contacts and connections in what could potentially be your next career move. This new sector may hold an interest for you, or separately the skills and areas of development may, as Julie Bond says, ‘give you the edge’ in that crucial interview or sectoral change.  What is invaluable is the mutual value-add to be gained by both the volunteers and the voluntary organisations – with knowledge sharing on both sides.   Ciara Tallon is a Career Coach and Recruitment Specialist with Chartered Accountants Ireland. 

Dec 02, 2019
Spotlight

Dee France outlines the services available to members  and students through CA Support, and the need for generosity in this season of goodwill and beyond. CA Support was re-launched at an event in October. Tell us about the rationale behind the re-launch. This new service is a re-imagining of the Institute’s original hardship fund, the Benevolent Association, where member donations were deployed to members in need. CA Support is now a registered charity with its own board of directors and the donations from members help fund a wide range of expanded support services such as professional counselling, wellness coaching and mental health workshops in addition to financial supports to members and students  in crisis. Based on your experience, what common challenges do our members face and how can the Institute help through CA Support? Given the mental illness epidemic, most calls received by CA Support have a mental health element that stems from the challenges faced by members and students. Members who engage with our service may be suffering from bereavement, redundancy, serious illness or some form of depression or burnout. Students also look for help with these issues in addition to exam stress, work-life balance and financial worries. At our launch in October, President Conall O’Halloran acknowledged that although a career in accountancy can be extremely rewarding and fulfilling, for some the road bumps encountered along the way can be significant and come at a huge personal cost – both in their careers and with their mental health. The new CA Support model is all about empowering the individual to self-sufficiency through a wide range of supports, namely professional counselling, wellness coaching or referral to our in-house career or mentoring service. We engage with our members throughout the process and many keep in touch to avail of additional support and guidance as they move away from crisis situations and towards positive change. How exactly does CA Support work to help members in difficulty? We provide a telephone, email and  face-to-face suite of services for members and students. Most engagement is via email initially, with many opting to talk to one of the team face-to-face or by phone. Every case is different; some members or students avail of several services while others seek support for an isolated issue. Whatever difficulties our members or students encounter, we are with them every step of the way. All members can help their colleagues by donating to CA Support. How important is this fundraising activity? Quite simply, donations are the lifeblood of CA Support. Without members’ donations, this service will cease to exist. We ask everyone to think of those members and students who can be blindsided by problems outside of their control such as bereavement, redundancy, mental health challenges or a family crisis. These issues take their toll in different ways, with many who contact us often in dire need. Unfortunately, many more may be suffering in silence. We want to reach those members and offer them all the support they need. Without the generosity of their fellow members and students, our ability to offer these services is compromised. We encourage all members to give generously, particularly when times are good. Nobody knows what’s around the corner and it is heart-warming to know that members’ support is there when you need it most. Finally, if a member needs a helping hand, how can they contact CA Support? Members and students can phone us on 01 637 7342 or 086 024 3294, contact us by email at casupport@charteredaccountants.ie or visit our website at www.charteredaccountants.ie/casupport    Dee France is Manager at CA Support.

Dec 02, 2019
Spotlight

Volunteers and non-profit experts explain how volunteers and civil society organisations can work together for the betterment of society. The third sector is the part of an economy or society comprising non-governmental and non-profit-making organisations or associations, including charities, voluntary and community groups, cooperatives, etc. Charities, non-profits and voluntary and community organisations are terms often used interchangeably, and although they can be different, they often overlap. In November, a BBC.com story about “the lifeguard” – a 22-year old Norwegian woman who keeps track of roughly 450 ‘dark’ Instagram accounts and intervenes to help suicidal users – generated a stir on social media. Ingebjørg Blindheim isn’t paid for what she does, nor is she formally qualified to offer help. Instead, the BBC report reads, she feels compelled to act. While for many this would be an overwhelming commitment in an always-on digital age, and some have questioned the wisdom of an untrained individual working in the space, it is reflective of the driving force behind volunteering and non-profit groups as a whole – a determination to help. This determination is alive and well in Ireland. Despite well-publicised issues in a small number of charities, the country’s non-profit sector remains robust, with 163,000 employees and 81,500 directors or charity trustees. The value of the third sector to Irish society is arguably best summed up by the degree of Government support it enjoys. Data from Benefacts, a non-governmental organisation that provides information about the non-profit sector in Ireland, shows that at €5.9 billion, Government was the biggest single source of funding to the third sector in 2017. This represented 8.4% of all current Government spending that year – although some might say that is still not enough. And while the focus of non-profit organisations is on the people they serve, several academic studies have demonstrated that spending time helping others leads to benefits for the individual volunteer. Such benefits can include greater positive affect, life satisfaction, social engagement and reduced depression according to a 2017 academic study by a team of US-based researchers. So, what is the nature of volunteering in Ireland today? The evolution of volunteering Over the years, the nature and popularity of volunteering on the island of Ireland evolved. According to Nina Arwitz, CEO at Volunteer Ireland, people now want to volunteer in new and less restrictive ways. “People generally look for short-term, flexible, one-off volunteering opportunities, but organisations have not kept up with this change in demand from volunteers,” she said. “Many volunteering roles are ‘traditional’ in that they require a regular, long-term commitment. Although such roles are very important, a lot of our work involves helping organisations develop new types of volunteer roles and think outside the box in terms of how they involve volunteers.” Nina also points to the growth in ‘informal’ volunteering, which is conducted without the assistance or oversight of an organisation. A common example is helping an elderly neighbour with their shopping each week. “About half of volunteering in Ireland is informal, and this follows a growing international trend across the globe.” Whether formal or informal, there is a strong demand for volunteers – and a corresponding willingness in individuals to give back to society. This willingness creates huge potential for mutual benefit at both personal and societal levels, according to Nina. “Volunteering enables non-profit organisations to engage in hugely important work in a range of areas from homelessness and supporting young people at risk of offending to animal welfare, the environment and befriending,” she added. “Much of this work would not be possible without volunteers.” Indeed, Volunteer Ireland’s 2018 annual survey of volunteer-involving organisations found that 60% of organisations see volunteers as crucial to their organisation, while almost one in five believe that their organisation could not operate at the same level without volunteers. The monetary value of volunteering further illustrates the importance of the volunteer community to the provision of necessary services throughout the island. “If you take the 232 million volunteer hours given in Ireland each year, as measured by the Central Statistics Office, and multiply it by the average industrial wage of €23 per hour, which is the internationally recognised way of approaching it as volunteering reflects a range of skills, you get an annual value of over €5 billion,” Nina continued. “But that doesn’t account for other economic benefits such as improvements to health and wellbeing, which ultimately saves money for the HSE. So, it’s still a conservative estimate.” Before you commit There is also an inherent value to volunteering – doing more than you must because you want to and because you care. This was certainly a motivating factor for Institute member, lifelong volunteer and Director of Finance at The Wheel, Tony Ward. “Being out and about and encountering new people is rewarding as it reinforces the fact that everyone is different and for a more vibrant and healthy society, we need to understand difference,” he said. “Also, when I joined Fighting Blindness and encountered so many people who were also visually impaired, it was comforting and of great support to meet and speak to people who had similar challenges.” While volunteering is undoubtedly a good thing to do, as much for the volunteer as the non-profit organisation and the people they serve, it is not something to be rushed into. The cause must resonate with the individual, and he or she must be able to fulfil their commitments, according to Tony. “Ultimately, nobody wants to be involved in something where they have any doubt about the organisation or cannot deliver on what they sign up to,” he said. “Volunteers also need to ensure that they don’t over-commit. Aside from one’s day job, family and interests, everyone has limited time to volunteer so it would be better to give your time wholeheartedly to one or two organisations rather than spread yourself too thinly.” It is also important to consider the type of organisation you volunteer with and the impact you might have. Some would-be volunteers may be attracted to well-known organisations, but Chartered Accountants can often add a disproportionately high degree of value in smaller, less-known charities. “Smaller organisations will undoubtedly have limited staff resources and struggle to access a broad range of skills. They may also struggle to get the necessary systems in place to ensure compliance with the increased regulations,” said Tony. “Without taking on an executive role, I believe that most Chartered Accountants could make a huge contribution to such organisations. I have done this many times, from my local GAA club to working with boards. It isn’t only about proper accounting systems but making good and prudent business decisions and ensuring that the organisation takes relevant factors into account when making those decisions.” Corporate volunteering To attract and retain talent, companies are increasingly supporting their employees in their volunteering activities and, in many cases, are getting in on the act themselves. According to Pamela Gillies, a Director in the Business Advisory team at BDO Northern Ireland, volunteering programmes are more than a CSR or marketing exercise – they help to create a healthier, happier and wealthier society that benefits everyone. “I am personally involved with our current charity partner, The Children’s Cancer Unit Charity, and I also volunteer with several different organisations in a personal capacity outside of BDO Northern Ireland,” she said. “Such volunteering programmes allow me to give something back to the local community, connects me with people I otherwise would not meet, and to have fun.” In Pamela’s view, a good volunteering programme is one that is sustainable and benefits both organisations in one way or another. “There could be a perception that volunteering diverts the time of client-facing staff,” she said. “But when volunteering is managed correctly and communicated effectively, the benefits of the organisation performing valuable work in the community will increase brand perception as a result.” Based on her experience, both corporate and personal, Pamela has some advice for organisations that have yet to step into this space. “As John Donne wrote in his famous poem, No Man is an Island, we all rely on each other, or we all need help at some time,” she said. “What we might consider a relatively small contribution in terms of time or cost can have a significant long-term positive impact on those receiving our help and support.” For organisations, volunteering creates a competitive advantage, raises brand awareness and helps businesses develop trust with shareholders, customers and employees, she continued. “Our world – and the people and organisations in it – is increasingly interconnected and volunteering is a way to actively manage those connections to benefit a company, as well as those people, organisations and communities you are helping,” said Pamela. “It therefore makes sense for businesses to implement CSR strategies in their business plan – not only for the benefit of others, but also for the success of the business.” The non-profit landscape According to Benefacts, there are almost 30,000 civil society organisations in Ireland for companies and individuals to partner with. While some are long-established, others are newer and have evolved in response to societal needs. At a high level, the sector includes: A few hundred large and well-established charities that deliver services on behalf of the State, mostly in education, health and social care, and international development aid. These organisations receive more than 70% of public funding which, in 2018, amounted to more than €6 billion or just under 10% of all current exchequer expenditure; A few thousand non-profit organisations, half of which are registered charities that rely substantially on the State for some, or most, of their income. These organisations are active in various sectors – including local development, social housing and the arts – and derive their income from various sources including the State (often in the form of service fees), earned revenues and donations from the public; and Tens of thousands of small, locally-based organisations. Many are local branches of national organisations while others are community-based. Few are incorporated, most are volunteer-led, and many receive small grants from their local authority. The biggest change affecting civil society organisations in the last ten years is successive waves of regulation, according to Paula Nyland, Head of Finance and Operations at Benefacts. “There are nearly 10,000 non-profit companies incorporated by guarantee and without share capital. As corporate citizens, they are subject to the same rules as any other company in terms of corporate governance, employment law, health and safety, lobbying, protected disclosures and so forth,” she said. “This has driven a marked professionalisation in the way they are run as non-profit businesses.” Also, half of these companies – as well as many unincorporated non-profits (mostly schools and religious bodies) – now come into the purview of the Charities Regulator, which has brought greater scrutiny, new compliance standards and disclosure requirements, and sanctions in the case of non-performance. Sector challenges In addition to regulation, the sector faces challenges on several other fronts, according to Tony Ward. These include: An inadequate understanding of the role the non-profit sector plays in Irish society, and subsequent negative media coverage; A lack of multi-annual funding, with many organisations surviving year-to-year; A lack of understanding, particularly by State funders, of the need to carry reserves – and the imperative for a board of trustees to have adequate reserves to manage an organisation competently; and The streamlining of financial reporting for charities, given that different forms of reporting are required by different State agencies. While collaborative thinking, such as the establishment of the Department of Rural and Community Development in 2017, may help non-profit organisations overcome these challenges, distinct risks remain for charities – both large and small – in the years ahead. However, Tony looks at this in a more nuanced way. “The sector is comprised of charities and non-profits doing fantastic work in areas of society that are overlooked, or where the only effective way the State can deliver essential services is through these organisations,” he said. “The risk is, therefore, a risk to society whereby those most in need of help or assistance may not be adequately served. And the simple fact is that the current model is not sufficiently planned or resourced to deliver for people at risk.” While much of the solution is out of individuals’ direct control, Tony firmly believes that volunteers and donors can exert a positive influence for change in how the non-profit sector is supported and resourced. “As we know, volunteers are essential at many levels within the charity and non-profit sector, and donors are the life-blood for many organisations,” he said. “They need to be very much part of the solution and need to feel they are contributing in a way in which they believe and trust.” Trust through transparency When it comes to improving the reputation of, and the aforementioned trust in, charities of all sizes, transparency is often cited as a critical factor. However, a significant milestone on the journey to true transparency is disclosure – a point on which Benefacts takes an uncharacteristically pointed stance. “Benefacts has a neutral position on most things. We give you the information as we find it and let you draw your own conclusions. The exception is disclosure, where we have a very strong view that more is better,” said Paula. She believes that various regulatory wrinkles have permitted a race to the bottom in non-profit disclosures. For example, Companies Act 2014 allows companies limited by guarantee that are SMEs (i.e. most of them) to avail of the same reporting exemptions as private companies. This means that since FRS 102 came into force, more than 40% of incorporated non-profits (including regulated charities) now file abridged accounts to the Companies Registration Office. “This is an awful pity since the full accounts have to be produced anyway and are required by funders,” said Paula. Furthermore, FRS 105 permits an even more minimalist standard in her view. “There is no requirement for a true and fair view presentation, no directors report and virtually no notes to the accounts. By now, 15% of non-profits – including some charities – are using this standard, which incidentally has been ruled as an ineligible standard for charities in the UK. “The Charities Regulator has proposed amendments to the law to introduce regulations that would specify the content required for charity accounts, including incorporated ones,” Paula continued. “This prevents the reporting of abridged or FRS 105 micro-entity format and mandating Charities Statement of Recommended Practice (SORP) for certain income thresholds.” The preparation of financial statements is universal to all enterprises of scale – be they private companies, government agencies or non-profits – and they have various merits, according to Paula. “They allow trend analysis and like-for-like comparisons. They must be formally adopted by the enterprise and validated by an expert third-party. Our message to non-profits is: seize the opportunity presented by these mandatory disclosures to put your best foot forward. Tell your story; explain where your resources come from and how you put them to best use.”She added: “Tens of thousands of sets of financial statements and constitutions have been downloaded from our free public website since Benefacts.ie went live in 2016. One thing we can say for sure is that donors, prospective board members and, surely, other volunteers as well will weigh the evidence of what they find before deciding to give or to serve.” Tony Ward, Director of Finance at The Wheel My volunteering began in a very unexpected way. In the mid-1990s, not long after qualifying as a Chartered Accountant, I was diagnosed with a degenerative eye condition. This brought me into contact with the charity, Fighting Blindness. I initially volunteered with the organisation as a member of the Dublin branch and then as a member of the board for ten years. Volunteering soon became the norm for me, and I subsequently joined the boards of Vision Sports and NCBI. As many Chartered Accountants know, finance skills are always in demand, so I often ended up as treasurer or on finance sub-groups. I am currently a member of the board of Sightsavers; a committee member of my local GAA club in Co. Monaghan; and the co-chair, with Paula Nyland, of the Chartered Accountants Ireland Charity and Non-Profit Special Interest Group. The older one gets, the more one becomes aware of the diversity in society and the different pathways people’s lives can take, often through family crises or encountering others who have personal or family challenges. It is important to give back and assist in any way one can, while not over-stretching as we all have our own commitments. In my experience, volunteering gives you the chance to meet new people, most usually very committed and passionate for their chosen cause. So many people volunteer in Ireland, and it is taken for granted, but society would be so much worse off without it.   Patrycja Jurkowska, Operations Accountant at GOAL Global I am currently President of Junior Chamber International (JCI) Dublin and as part of my role, I lead a board of nine directors and approximately 60 members. I work with young professionals, local communities and businesses to create positive change in the world through workshops, initiatives and projects. I am also a member of the Chartered Accountants Young Professionals Committee, which organises member-focused events.  I always wanted to give back to the community and have a positive impact. In 2017, I was introduced to JCI. After doing some research and attending a few events, I decided to donate a portion of my free time to it and have never looked back. Similarly, with Young Professionals, after enjoying a few events, I was encouraged to join the Committee in 2018. I like the idea of organising get-togethers for Chartered Accountants to learn new skills, share knowledge and network, and I have supported the Committee ever since. Through volunteering, I learned that what my most prominent motivators are helping others and giving back. This was a deciding factor for my career move. I found a role with GOAL, where I wake up excited every morning at the prospect of being able using my skills as a Chartered Accountant to work towards a more sustainable world where poverty, hunger and inequalities no longer exist. Volunteering makes the world a better place to live – and it helps me be a better person too. Deborah Somorin, Senior Associate at PwC If  you work for eight hours and sleep for eight hours, you still have another eight hours in your day. I choose to spend some of those eight hours volunteering. I know how valuable support can be in achieving your goals, and I also understand that a lot of people don’t have that support in a form they need. So, I try to give as much of my free time as possible to initiatives that allow me to help people in a way that is tailored to their needs. A homeless charity supported me when I was homeless, and again when I was transitioning out of State care. They later asked me to help with some fundraising initiatives and arising from that, I founded Empower the Family in 2018 to support single parents and State care leavers in third-level education. It’s essentially my second child. I also volunteer with other organisations. I am a board member at Chartered Accountants Support, which offers support to Chartered Accountants, Accounting Technicians, students and their families, and a member of Chartered Accountants Ireland’s Diversity and Inclusion committee. Beyond the Institute, I act as a Diversity in Business ambassador for Diversein.com, which works to create equal and happier workplaces through diversity and inclusion. I am still shocked at the impact I can have by sharing my experiences. Helping others is a huge privilege, and I plan to keep volunteering for as long as I can be of help.

Dec 02, 2019
Feature Interview

Trócaire’s Michael Wickham Moriarty speaks to Accountancy Ireland about his career in the non-profit sector and the satisfaction he gets from volunteering. From Monaghan to Dublin to Khartoum and back again, Michael Wickham Moriarty’s career path as a Chartered Accountant has been anything but predictable. Trócaire’s Director of Corporate Services, who recently collected the ‘Best Large Charity Annual Report’ award at the Published Accounts Awards, and two additional accolades at the Good Governance Awards, has worked in the charity and non-profit sector since completing his training contract with PwC’s tax department – but in fact, that’s where his passion for meaningful work began. As a trainee, Michael’s work exposed him to several family businesses and non-profit organisations. Reporting to PwC’s Teresa McColgan, who is a board member at Concern, helped him realise the value he could bring to organisations as a Chartered Accountant – both as an employee and volunteer. The first stint overseas Despite enjoying his work in tax during the Celtic Tiger years, a career in practice wasn’t in Michael’s long-term plan. Rather than move straight into another ‘career’ role, however, he instead opted to work overseas for one year with GOAL. “In 2008, when the economy was beginning to wobble, I moved to Khartoum in Sudan to work with GOAL as their on-site donor compliance officer,” he says. “I was working under the supervision of GOAL’s financial controller in Khartoum, which was great because donor compliance was a new area for me.” At the time, Sudan was also ruled by Arab dictator, Omar al-Bashir, whose forces imposed an arbitrary sharia legal system within the country. “I experienced a lot of changes in a very short space of time,” Michael recalls. “Plus, I had to get used to a new way of living. The stipend provided by GOAL meant that you had just enough to get by and this was a major drop from my salary as a Chartered Accountant working in practice, but it was never about the money. Ultimately, it was a fascinating experience and I learned a lot during my time there.” Over the course of the year, many of Michael’s colleagues returned home for brief spells. At this point, the financial crisis was taking a wrecking ball to the Irish economy and he was hearing reports that described a different country to the one he left behind. After a year of volunteering with GOAL, he took up another donor compliance role with Plan International Ireland, which divided his time between Dublin and West Africa. “It was quite shocking for me to hear just how bad things were in Ireland. I was in Guinea when I heard on French language radio about the IMF coming into town, and I remember having to explain to the locals about the situation back home,” he says. “It was devastating because so many people overseas rely on Irish aid. In one village, for example, the only stable concrete building was built using Irish aid and the locals were extremely grateful because it allowed them to care for disabled children safely.” Returning to a changed Ireland Michael worked with Plan for three years – before joining the Ana Liffey Drug Project as Head of Finance and Administration. Working with Ana Liffey was very different from working overseas, Michael recalls. “Our clients were in and out of the building every day and I had the opportunity to meet them and hear their stories,” he recalls. But the most interesting thing he noticed about small charities is how little they have by way of resources to get by. “The organisation had an amazing ethos that really appealed to me, but every cent mattered,” he says. “So much so that when a computer broke down, I found myself carrying it to the local PC repair shop rather than spend money on a courier. And that’s the reality for many small charities in Ireland today.” Michael’s stint with small charities came to an end, however, when an opportunity arose to join the team at the Central Remedial Clinic (CRC). The CRC had survived a major scandal in 2013 that involved top executives receiving salaries far in excess of agreed official public service pay rates – and these executive salaries were being topped-up in part by public donations. Although Michael was a spectator to many scandals, he now found himself in an organisation that was working to rebuild its reputation and regain the trust of the public. “Eighteen months after the CRC scandal broke, the new CEO decided to recruit a new Head of Finance. I applied for the job and it helped that I was interested in governance and reform, as that was a critical objective for the entire organisation,” he said. “And it was a wonderful experience. I headed up a great Finance team and we quickly recruited a new external audit firm, adopted Charities SORP and implemented a new internal audit regime.” The key to success, in Michael’s view, was the fact that change was supported at all levels of the organisation – not least by the leadership team. “The technical changes weren’t without their challenges, but that was my area of expertise,” he says. “What really impressed me, though, was the CEO’s focus on culture change. The entire organisation moved from an old reality to a new reality in a relatively short space of time, and it was fascinating to observe that shift happening.” Stepping up During this time, Michael was also volunteering as the Company Secretary and Deputy Chair of EPIC – a national organisation that works with children and young adults who are either in care, or who have experience of being in care. He stepped down in July 2017 after five years as a board member, to take up a voluntary role with the Rotunda Hospital where he is now Honorary Treasurer, Vice President, and Chair of the Audit and Governance Committee. According to Michael, both volunteering and working in the non-profit sector allowed him to see both sides of the same coin – something that benefited him in his capacity as an employee and board member. “In my younger years, I volunteered because I had the time and inclination to put my training to good use, but it ended up being a mutually reinforcing experience,” he says. “The time I spent at the board table certainly made me a better executive when reporting to the board. It also introduced me to an entire network of people with similar values to my own and it has become an outlet of sorts for my own need to make some sort of positive change in society. So, in that respect, I’ve found volunteering very worthwhile.” Living a meaningful life While Michael is a volunteer in one sense, he is very clear about his paid role as an employee – and this extends to his approach to management within Trócaire, where he now works. “I lead a team of accountants and IT professionals, so I think about talent retention a lot. My colleagues don’t get paid as much as they could elsewhere, but they don’t work as a favour either. All staff in the not-for-profit sector need to be paid fairly; you need to be able to send people home with the ability to pay their bills and support their families,” he says. “Otherwise, only the independently wealthy could work in this space and that wouldn’t be right or good.” And while Michael himself took a significant pay cut to work with GOAL in Sudan all those years ago, and has only recently recovered the shortfall, he is happy with his lot. “Some of my friends stayed in practice while some moved into industry, and they get paid very well, but I am happy with my circumstances,” he adds. “I am very lucky to do meaningful work, which brings me a lot of value and satisfaction. Many people have been interested in my experience and career path, but I’ve found that they often struggle with what they would be forced to give up financially and that is very understandable. But for me, working in an organisation that provides life-changing and life-saving services gives my work great meaning and ultimately, that has influenced    my career choices and it’s what keeps me in the sector.” Michael on… Volunteering: “We can’t solve all the problems of the world, but volunteering gives you an outlet beyond being upset or angry about it.” Scandals: “There is a sceptical eye on charities, and that will continue. We must respond to that scepticism and the best way to do that, in my view, is through transparency.” Reporting: “Charities need to present financial statements in a way that allows people to understand the issues with ease, and the Public Accounts Awards is doing great work in driving standards up across the sector.” Motivation: “When you see kids donating €2 for their school’s hot chocolate day or pensioners donating part of their weekly pension, there’s nothing more motivating than that. It pushes you to ensure that their money is used for the full benefit of the people you serve.” Diversity: “A lot of boards are dominated by white, middle-aged and middle-class men, and I’m at least two of those myself! We need to help more young people, women and those from ethnic minorities to get involved in boards – and that diverse talent pool is available amongst the membership of Chartered Accountants Ireland."

Dec 02, 2019
Strategy

Creating an ethical workplace isn't just about punishment when things go wrong – it's essential to foster an ethical outlook within the organisation. Stephanie Casey explains how to give employees the tools to deal with ethical dilemmas. When corporate scandals arise, the senior leader is often reprimanded, but the issue of ethical misconduct cannot simply be solved by firing the manager. Award-winning research from Amanda Shantz and Catherine Baily indicates that while managers are key to cultivating an ethically strong environment, organisations must invest in ‘distributed’ ethical leadership in order to ensure lasting change. In other words, they must hire and cultivate leaders at all levels who promote ethical behaviour. According to the study: “an ethically strong situation is one in which people understand events in the same way, where there is clear information about the consequences of behaving (un)ethically, and where employees have the skills and motivation to do the right thing.” By contrast: “an ethically weak situation is one in which employees respond idiosyncratically, where the appropriate ethical response is unclear, and where there are few incentives to behave ethically.” Fostering ethics So, how do managers foster ethically strong situations? Shantz and Bailey sought to address this question by conducting in-depth case studies of five organisations, as well as surveying a representative sample of over 1,300 workers, across the UK. Their research reveals some important recommendations for managers. Acknowledge ethical ambiguity Many organisations fail to discuss ethical challenges their employees may face. This drives individuals to internalise their decision-making processes with potentially negative consequences.  Instead, managers should encourage open discussion on ethical issues and possible solutions. This gives employees a clear understanding of the organisation’s ethical values and the confidence to seek support from their managers without fear of judgement. Clarify ethical trade-offs In 1950, Johnson and Johnson founder, Robert Wood Johnson, identified four stakeholder groups that he saw as vital to the success of any corporate endeavour: employees, customers, the community and shareholders. He maintained that if a company looked after the first three groups, then the shareholders would be the beneficiaries. Although the needs of all stakeholders can sometimes be met, trade-offs are usually necessary. When employees are unsure of how to manage this tension, unethical approaches can develop. In these scenarios, managers should establish a consistent ethical framework with guidelines for balancing stakeholder interests to help employees weigh up competing concerns and make appropriate decisions. Ensure role-modelling from the top down Employees pay more attention to how leaders behave than what they say about ethics. The key is for leaders to not only be ethical but to also be seen as ethical by championing ethics and values at every opportunity. It’s clear that no organisation is immune to ethical breaches, but by equipping employees to deal with daily ethical dilemmas and enabling them to raise any concerns they may have in the knowledge that they will be protected from any form of penalisation or retaliation, the next corporate scandal could be prevented. Stephanie Casey is the Programme Manager of Integrity at Work at Transparency International Ireland. Amanda Shantz will address the Integrity at Work Conference at the Radisson Blu Royal Hotel, Dublin on 20 November 2019.

Nov 10, 2019
Management

Chartered Accountants Ireland through its network of members nationally and internationally, has undertaken a significant investment throughout the year to strengthen its long established and well regarded mentor programme.  The range of sectors and the variety and background of those who volunteer as mentors has significantly broadened and a particular focus has been to develop a strong mentor base outside of Leinster and well as Internationally.  The number of members now involved is almost 140 with members being added by the day and a positive feature has been the increased mentorship by female members with membership tipping the 33% mark. Having a mentor at any stage of a career has proven to add significant support and value to members as they navigate the complexities of career development and paths.  Since its establishment in X the consistent feedback from the hundreds of Chartered Accountants who have been both mentor and mentee has been their positive experience as they value the humility and professionalism of those that have been involved in the programme. We welcome approaches from members who see the value that mentoring has to offer them to keep a finger on the pulse of new industries, environments and sectors as well as members who would appreciate a listening ear to guide them on their career journey.  This is a confidential service offered by the Career Development & Recruitment Service as part of your annual membership fee and we look forward to hearing from members in the years ahead.   For all questions on this programme please contact in confidence Ciara Tallon on 01-6377 322 or by mail at Ciara.tallon@charteredaccountants.ie

Nov 07, 2019
Spotlight

There is an infinite amount of things a board could and should focus on, but here are five trends boards should consider to help their organisations thrive into the future. By Kieran Moynihan As we count down to 2020 and a new decade, it is very timely to reflect on the significant changes that have happened in the last decade in the areas of boards, directors and corporate governance – and importantly, the major trends that are happening right now that will shape boards across Ireland over the next decade. This time 10 years ago, many company boards were in a firestorm in the middle of the financial crisis. Despite the significant strengthening of corporate governance codes between 2000 and 2010, a significant number of companies and boards, from large Plcs to SMEs ultimately failed to protect the interests of their shareholders, employees and broader stakeholders. This pattern was common across the world and resulted in the major strengthening of corporate governance codes and national company laws, with the result that now – both in Ireland and across the world – there has never been stronger corporate governance codes, company law and regulation in place to ensure that boards and their directors discharge their stewardship duties to secure a sustainable long-term future for their organisation, shareholders and stakeholders. As we stand now, there has never been greater scrutiny placed on boards and directors – not only in large companies listed on the stock market, but across the full range of companies, charities, non-profits and state boards. All shareholders, employees, stakeholders and the public at large have a strong understanding that the behaviours, culture, effectiveness, performance and decision-making of the board of directors have a fundamental impact on the organisation. Despite the strengthening of our corporate governance and company law framework, we continue to see serious issues with boards. Unfortunately, this will continue to be a pattern. The collapse of Carillion in the UK with the catastrophic loss of jobs and significant impact on many state projects in the UK and Ireland sent shockwaves through the UK and Irish business world. When serious problems arise in Plcs and large charity, non-profit and public sector boards, there is significant media attention with in-depth analysis forensically examining how experienced boards made up of executives and non-executives with decades of experience could preside over significant destruction of shareholder value and very poor levels of stewardship that severely impacts on employees, broader stakeholders and – in some cases – the very future of the organisation. In reality, while the scale of the organisation might differ and the board directors may have a lot more experience on high-profile boards, the complexity of the “people equation of the board” means that any board in the large private company, SME, charity, non-profit and public sectors can struggle to deliver on the leadership, performance and responsibilities that their shareholders and stakeholders have entrusted to them. Boards are, by their very nature, complex and while all strengthened corporate governance and company law are very important, the reality is that the behaviours of the individual board members and the board team collectively will ultimately impact on whether the board can genuinely excel as a high-performing board team, demonstrating the highest standards of ethics and ensuring a long-term sustainable future for all their shareholders, employees and stakeholders. It is also important to highlight that in our work week-to-week supporting board teams across Ireland, the UK and internationally across all sectors, we see truly outstanding and committed board teams and directors who are excelling for their shareholders and stakeholders with a genuine commitment to “always do the right thing” and continually improve their board effectiveness and performance. We will now look at the key themes that are impacting boards, both in Ireland and internationally, as we approach 2020. While many of these themes are particularly relevant to Plcs on the stock market, these themes are already finding their way into private companies and charity, non-profit or public sector boards. Progressive board teams, irrespective of scale, are also embracing these trends as key components of the board’s leadership and drive for genuine, long-term sustainable success. 1. Focus on environmental social governance (ESG) One of the most dramatic changes in company boards around the world throughout 2019 was the significant shift away from “shareholder primacy” to a much broader focus on both shareholders and all stakeholders including employees, customers, suppliers, partners, environment, state and the public at large. This is quite a radical shift in thinking for boards and companies. The business and broader community across the world was quite shocked when a highly influential group of 181 CEOs representing many of the largest US and global companies (e.g. Walmart, UPS, Amazon, Johnson & Johnson) issued a radical statement on 19 August which outlined: “While each of our individual companies serves its own corporate purpose, we share a fundamental commitment to all of our stakeholders. We commit to: Delivering value to our customers. Investing in our employees. This starts with compensating them fairly and providing important benefits. It also includes supporting them through training and education that help develop new skills for a rapidly changing world. We foster diversity and inclusion, dignity and respect. Dealing fairly and ethically with our suppliers. We are dedicated to serving as good partners to the other companies, large and small, that help us meet our missions. Supporting the communities in which we work. We respect the people in our communities and protect the environment by embracing sustainable practices across our businesses. Generating long-term value for shareholders, who provide the capital that allows companies to invest, grow and innovate. We are committed to transparency and effective engagement with shareholders.” This represents a truly seismic shift in how the boards of companies look at their role. While delivering and maintaining shareholders’ best interests will always be a fundamental responsibility of a board of directors, it will now need to be shared with a broader set of responsibilities to operate and behave in a way that takes into account the needs and concerns of all its stakeholders. The emergence of a “multi-stakeholder model of corporate governance” in companies has been coming for some time as globally, there is a very high level of soul-searching going on in terms of “the role of business in society” and the business sector’s responsibility in supporting increasingly challenging social and environmental issues. While this is currently playing out in publicly listed companies, this change is starting to trickle down to large private companies and SMEs will also be affected in time. A key catalyst for this will be that investment, asset management and pension funds globally are now placing a key emphasis on ESG and this in turn is resulting in all types of investment and financial firms – from venture and private equity investors to debt providers, sovereign wealth funds, banks and private investors – now asking a lot more of companies and their boards in the area of ESG and stakeholder engagement in return for their financial investment and support. What does this mean for companies? We are already seeing large companies listed on both the Dublin and London stock exchanges place a very significant emphasis on ESG and broader stakeholder engagement. The boards of progressive large private companies take their lead from their Plc counterparts and over the coming years, a lot more will be expected of the boards of companies and organisations to demonstrate that their actions are not solely driven by profit and financial performance but by a balanced, sustainable commitment to all shareholders and stakeholders for a sustainable future. There is also a strong school of thought globally that this more long-term approach to business and profit will help reduce the enormous impact on jobs and communities caused by excessive corporate pursuit of profits and risk-taking. 2. Engagement between the board and employees  One of the areas that has come into focus as part of this shift to a multi-stakeholder model is the relationship between the board and employees. The vast majority of employees in companies and organisations, large and small, would legitimately ask “what relationship?” Since the first boards of directors formed in the early 1600s (the Dutch East India company is considered by many to be the first company board of directors), the absolute focus of the board and company on financial performance made it very difficult for the board to genuinely partner with employees and incorporate their perspectives and concerns into the board’s thinking and the company’s decision-making. We recently completed an external board evaluation for a FTSE-listed company in the UK. As part of the external evaluation and alignment with the UK Corporate Governance Code (2018), one of the newer areas in the 2018 UK Code we closely evaluated was the engagement model between the board and employees, and how the board and senior management team enabled the “voice of the employees” to be heard and taken into account in the boardroom. In this case, the board and executive team had an outstanding approach to employee engagement and this was reflected in an extremely talented, loyal workforce and an excellent reputation in the market for quality and customer-centricity. The UK’s Financial Reporting Council (FRC), as part of its guidance on board effectiveness, has issued some new far-reaching guidelines as follows: “With the aim of strengthening the ‘employee voice’ in the boardroom, the Code asks boards to establish a method for gathering the views of the workforce and suggests three ways this might be achieved, consisting of: A director appointed from the workforce; A formal workforce advisory panel; and A designated non-executive director.” The FRC also suggested that employee engagement with the board could be further strengthened through: Hosting talent breakfast/lunches, town halls and open-door days; Listening groups for frontline workers and supervisors; Focus or consultative groups; Meeting groups of elected workforce representatives; Meeting future leaders without senior management present; Social media updates; Visiting regional and overseas sites; Inviting colleagues from different business functions to board meetings; Employee AGMs; Involvement in training and development activities; Surveys; Digital sharing platforms; and Establishing mentoring between non-executive directors and middle managers. The vast majority of Plcs in the UK and, by extension, Irish Plcs are finding this a very radical change. In nearly all cases I have seen, Plcs in the UK and Ireland are opting for a designated non-executive director to represent the employee voice and interest in the boardroom. Outside of some European countries like Germany, where employee representation at the board is mandatory for larger companies, Ireland and the UK do not have a history of employee directors at the board. In a survey in October 2018 by the ICSA Governance Institute in the UK, 91% of companies surveyed indicated that they are not considering adding employees to their board, despite the strong encouragement and guidance in the UK Corporate Governance Code and FRC guide on board effectiveness. In my discussions with a number of Plc board chairs, they indicated that their biggest concern was that an employee could lack the overall breadth of experience and judgement to not only contribute effectively at board level and take the overall shareholder and stakeholder perspectives into account, but to handle very difficult issues involving – for example – potential employee layoffs, change of work conditions, etc. This is a very complex area, with sensible arguments on both sides of the debate. In terms of company and organisation boards in Ireland, I believe progressive boards will assess what is happening in this area globally and find ways to increasingly engage employees and to ensure that their perspectives and concerns are genuinely integrated into the board’s decision-making process. In his wonderful new book, Future Proof Your Career, John Fitzgerald provides far-reaching insights into how the workplace has changed fundamentally and that employees today, particularly younger employees, are re-assessing their overall approach to work and their employers. The era of “a job-for-life and unstinting loyalty to an employer who does not genuinely value you” is over and boards are increasingly nervous of the difficulty in attracting and retaining high-calibre employees. When I see a very high-quality board, whether it’s in an SME, Plc or non-profit, charity or public sector board, they have an emphasis on building a genuine relationship with their employees, on nurturing the talent in their organisation, on inspiring their employees to go the extra mile for their clients and colleagues, on treating and supporting their employees with the utmost respect and dignity. Progressive boards also see the very strong link between customer satisfaction and the attitude and performance of employees engaging with customers. We have all seen over the course of our lives the difference it makes, whether as a consumer or a business, when you have employees of a company or organisation who are genuinely customer-centric, who take great pride in delivering for their team and company. 3. A step-change in the value being added by the board As we go into 2020, the boards of companies and organisations have never been under such pressure to demonstrate the genuine value they add to the executive team and the company/organisation. A very wise board chair once said to me that if all the board is doing is merely oversight, and does not add any genuine value in terms of strategic “move-the-needle” thinking, helping the executive team optimise their decision-making and supporting the executive team in times of crisis, the board is ultimately doing a disservice to the shareholders and needs to be refreshed and strengthened to enable the board to add serious value. Every company, no matter how big or small, faces a very challenging set of headwinds, ranging from major business model and technology disruption in their market segment, significantly reduced barriers for new market entrants, unprecedented levels of competition, Brexit, volatile trading and geopolitical considerations as well as attracting and retaining outstanding employees. Clearly, oversight and the board acting as a key line of defence in safeguarding the financial, legal and operational health of an organisation will always be a critical responsibility for a board – but this in itself is not enough to deal with all the headwinds and chart a course of long-term sustainable success for the organisation. A high-performing board team that excels for its shareholders and stakeholders has a great mix of executive and non-executive directors (NED). Successful NEDs bring serious strategic firepower to the board team that both compliments the CEO and executive team, but also brings different thinking. They stretch the strategic envelope of the CEO and executive team in terms of disruptive fresh thinking around new business models, innovation areas, mergers and acquisitions, and new product/service/geographic market areas while helping the CEO and executive team face up to the brutal reality that it’s time to walk away from a once highly successful product or market area. In working with boards, I often highlight the role of the board and NEDs as a lighthouse that shines a light in front of the executive team and, in many cases, illuminates dangerous rocks that could threaten the organisation. As a former CEO and in working with so many CEOs and board teams, I can testify first-hand that many CEOs and executive teams are working so hard and are so close to the day-to-day cut and thrust of the organisation that they can find it very difficult to step back, take a very objective look at their competitors, where customers are at, disruptive trends and the many significant threats and opportunities that are appearing in today’s marketplace. An outstanding NED has a great work ethic, curiosity and interest in the organisation to go the extra mile to not only engage in high-quality challenge and debate with the CEO and executive team, but to roll up the sleeves, add serious value in the strategy area and ultimately increase the quality of executive and board decision-making. 4. Diversity and independence of mind One of the challenges every board faces is group-think, where “a psychological phenomenon in which the over-riding desire for harmony or conformity in the group results in an irrational or dysfunctional decision-making outcome”. While this is a well-documented problem that had a serious role to play in company boards in the financial crisis, it is a problem that can affect any board in any sector, sometimes with quite serious consequences. It is human nature; we can all be uncomfortable with having a contrary viewpoint and being an outlier in a group that manifests itself in a board team. Boards can therefore attempt to minimise conflict and reach a consensus decision without critical evaluation of alternative viewpoints by actively suppressing dissenters and isolating themselves from outside influences. The two proven antidotes to group-think are genuine diversity in the board team and an outstanding board chair who nurtures and encourages high-quality challenge, debate and who legitimises either a single or small sub-set of board members who have a significantly different viewpoint to the majority of the board or major concerns with a key proposed strategy or decision. The critical area of “independence of mind” is very topical in the financial services sector, as regulators focus on ensuring that the non-executive directors are genuinely independent and putting this independence into action in the board team. Alfred P. Sloan ran General Motors from 1923 to 1956 and exemplified this quality of board chair leadership before one of his top committees, saying: “Gentlemen, I take it we are all in complete agreement on the decision here?” Everyone around the table nodded in assent. “Then,” continued Mr Sloan, “I propose we postpone further discussion of this matter until our next meeting, to give ourselves time to develop disagreement and perhaps gain understanding of what the decision is all about.” In recent years, I have watched on in amazement at the debate around female representation on boards in Ireland and why there is still a strong need to impose gender quotas and so on, as there is still a portion of legacy-oriented boards resistant to adding female board members. Anyone who still feels, as we get ready to enter a new decade, that the addition of female directors, younger directors, directors with deep technology expertise and directors with diverse professional and industry backgrounds does not improve a board’s effectiveness, performance and decision-making hasn’t seen a genuine high-quality board in action. The critical objective of diversity on a board is diversity of thinking styles. The highest-performing board teams see diversity as the foundation of their board team’s ability to not only drive optimal decision-making, but also avoid serious group-think problems. As we enter 2020, we are finally starting to get to an era where it will be commonplace to have a wide mix of gender, age, professional, ethnic and industry sector backgrounds where the sole criteria is to have the best mix of the best people who excel as an outstanding, diverse board team on behalf of shareholders and stakeholders. 5. Culture, ethics, behaviours and values Throughout 2019, we have witnessed a series of scandals and serious crises involving the boards of a wide range of organisations throughout Ireland. We are not alone in experiencing this, as board scandals and crises are commonplace in most countries throughout the world. In many cases, there are common denominators such as an overly dominant CEO who rides roughshod over the board; or a CEO and board chair who are too close and, thereby, serious robust challenge and debate are suppressed. In the House of Commons Special Committee report on the collapse of Carillion, the following two conclusions are a frightening insight into how a board can lose its way so badly and drag everybody over the cliff-edge, resulting in tens of thousands of job losses: “Corporate culture does not emerge overnight. The chronic lack of accountability and professionalism now evident in Carillion’s governance were failures years in the making. The board was either negligently ignorant of the rotten culture at Carillion or complicit in it.” And: “Carillion’s directors, both executive and non-executive, were optimistic until the very end of the company. They had built a culture of ever-growing reward behind the façade of an ever-growing company, focused on their personal profit and success. Even after the company became insolvent, directors seemed surprised the business had not survived.” In contrast to these findings is the following recommendation in the Carillion report, which highlights the importance of courage and “conviction to do the right thing” in a board team: “Emma Mercer is the only Carillion director to emerge from the collapse with any credit. She demonstrated a willingness to speak the truth and challenge the status quo, fundamental qualities in a director that were not evident in any of her colleagues. Her individual actions should be taken into account by official investigations of the collapse of the company. We hope that her association with Carillion does not unfairly colour her future career.” Early in my own career, I often wondered about the famous phrase from Peter Drucker that “culture eats strategy for breakfast”. For board teams facing into a new decade, it has never been more critical to focus on culture and the board’s key role in working with the CEO and executive team to define and embody the culture, behaviours and values of an organisation. I sometimes hear board members from companies and organisations say that “culture is only for multinationals with tens of thousands of employees – we don’t have time to worry about things like that, we have a business to run”. Yet around the world, organisations and their boards are significantly increasing their focus on culture, ethics, behaviours and values as they recognise that a strong, healthy and vibrant culture in an organisation is a fundamental enabler of long-term sustainable success. Where an organisation has a healthy, vibrant and respectful culture that is embraced and put into practice day-to-day from the board chair and individual board directors right down to the most junior employee, you have the foundation for a sustainable organisation that is genuinely customer-centric. In this scenario, everyone’s default approach in the organisation is to do the right thing, inappropriate behaviours – irrespective of the seniority of the individuals involved – are not tolerated, and all employees, stakeholders and shareholders are genuinely proud to be a part of the organisation. In hyper-competitive and challenging markets, the stewardship and leadership of the board and executive team will influence an organisation’s employees, culture and customer-centricity. This will, in many cases, make the fundamental difference in terms of which companies and organisations will be still standing in 2030. Kieran Moynihan is the managing partner of Board Excellence, a specialist board practice that helps boards and individual directors excel in the areas of effectiveness and performance. Kieran has over 20 years’ experience serving on boards as a CEO and executive director, non-executive director and board chair.

Oct 01, 2019
Feature Interview

Claire Fitzpatrick FCA looks back on her career, from trainee auditor to the frontier of blockchain technology innovation. What’s wrong with me?” For someone who has enjoyed a varied and successful career in professional services and large corporations, it might come as a surprise to learn that Claire Fitzpatrick asked herself that very question in her 30s as she watched her peers move into senior roles. “You just need to get on the track,” she was told – a less than subtle reference to the perceived linear path to CFO/CEO roles. But as Claire readily admits, this isn’t how she operates. The Dublin native has made serendipitous career moves since leaving PwC in 2000 to work with one of her audit clients, Point Information Systems, but the draw has never been status or salary. Instead, her career has been guided by two things – people and culture. Venturing out While working as a PwC Audit Senior with Point Information Systems, Claire saw the culture she wanted to work in – ambitious, fast-changing and transformative. “I remember coming back after a year and the company had changed completely, whereas some other companies I audited would be the same year-on-year,” she said. “It was evolving at pace and the energy there just stood out for me.” Claire joined the company and her role expanded her knowledge base in a variety of new disciplines from engineering to sales and marketing. This diverse exposure would be of great benefit to her later in her career, not least when she returned from a working holiday with Nestlé in Australia and New Zealand to a role in O2. The company was in expansion mode at the time and Claire managed to experience the full life-cycle from early adoption to the sale of the business, which she was centrally involved in. From there, Claire moved to Wayra, Telefónica’s start-up accelerator, to accelerate digital embryonic businesses. As Claire recalls, it was a move that raised some eyebrows at the time. “A lot of my peers thought it was a step down for me in career terms, but I really wanted to get involved in the innovative digital space,” she said. “It reminded me of the energy and pace I felt in Point Information Systems and I had experience of both start-up and corporate environments, so I was able to bring a lot to the table.” Start-up life In her first three weeks in Wayra, Claire met with hundreds of entrepreneurs and developers across the tech ecosystem and this intensity continued unabated for three years. The hub was a success, investing €6 million in the Irish start-up ecosystem including 33 equity investments while returning the same amount. “For early-stage start-ups, that’s a great return,” she said. However, following the sale of O2 to Three in 2014, Telefónica ultimately closed its Wayra hub in Ireland and Claire decided to take on a new challenge.  The idea of starting her own business had never entered her mind, but the closure of Wayra meant that Claire and her two colleagues faced a fork in the road. “We saw real value in what we were doing at Wayra, and we were good at it,” she said. “So, we decided to set up Red Planet and to flip the accelerator model on its head. We started with the corporate to understand the problem it was trying to solve, and then sourced the best start-up talent to solve that particular problem.” The venture was successful and it achieved what Claire describes as “the holy grail” for start-ups – being sold to a large corporate. Red Planet was acquired by Deloitte in 2017 and Claire continued to work with the firm for 18 months. “Selling our start-up was a tough decision, but the right one. Deloitte was really good at the strategy piece and identifying the challenges facing their clients, while Red Planet was able to find the solutions in the start-up world and develop them to scale. We were very good at curating diamonds in the rough.” Blockchain calling At this stage in her career, Claire faced an inflection point. Not content to simply go with the flow, she began plotting her next move when an opportunity arose to join a new blockchain venture headed by the co-founder of Ethereum, Joseph Lubin. The company was founded in 2014 and was at the forefront of Ethereum blockchain technology innovation. It needed someone to establish its base in Dublin and build its team, and the company ultimately chose Claire as its Director of Strategic Operations. The Dublin hub, which is known as ConsenSys Ireland, is developing the products that will enable society and enterprises to advance to the next level of blockchain adoption. Claire is very excited about the bigger picture. “In the future, you won’t even know you’re interacting with blockchain. It will be just like the Internet where nobody really thinks about or considers the infrastructure or protocols – they just see the applications,” she said. “Blockchain will be as transformational as mobile telecommunications was 25 years ago. We are part of a new industry, a new technology, new products, and a market which we have to create and educate. That’s a big challenge, but a very exciting one.” Leadership style But amid the excitement and potential lies ambiguity, and it takes a certain type of person to thrive in an ambiguous environment according to Claire. “Given the nascent nature of blockchain technology, we’re continually refining our vision and new industries are constantly wanting to explore new directions with the technology. So, although everyone in the company has goals to achieve, some are set in stone and some evolve to meet the needs of our clients,” she said. “That’s no different to a traditional organisation but we do differ in that we could have to tell staff to drop projects and pivot in a new direction at a moment’s notice – and some people find that challenging.” Luckily for Claire, working in a maturing industry adds to the allure of her new role in ConSensys – one she believes will contribute to a decentralised, democratised future for individuals. “It’s a rollercoaster, but with experience and age comes perspective and balance,” she said. “And the most important thing for me, throughout my career, has been the people I work with. My colleagues today are not necessarily wired like me but we work well together in the good times, and the challenging times, to make something great happen. That’s what it’s all about.”   Claire’s advice for Chartered Accountants Chartered Accountants will have a central role in the deployment of blockchain technologies and rather than wait for mass adoption, Claire believes the time to upskill is now. “The conversation around blockchain has moved from proof of concept to pilot schemes so when we’re talking to clients, we’re discussing real systems as opposed to hypothetical ideas,” she said. “So, I wouldn’t recommend waiting to start blockchain projects because we will reach the point of mass proliferation quicker than most people expect.” “The first step for all Chartered Accountants is education. There are free educational resources through ConsenSys Academy and Blockchain Ireland is working to raise awareness of what’s coming down the tracks,” Claire added. “But it’s vital that Chartered Accountants realise that anyone can quickly become a laggard in this dynamic environment.” “Finally, I would stress the point that Chartered Accountants don’t need to worry about losing their heads in the weeds trying to understand the programming and coding side of things,” she said. “They should educate themselves with regard to the characteristics and applications that they can see for blockchain in their business.”

Oct 01, 2019
Management

A new report proposes measures for the sustainability of owners’ management companies and lays the foundation for a more structured approach to managing apartment complexes or managed estates. By David Rouse In a professional audit or reporting capacity, Chartered Accountants may encounter owners’ management companies (OMC). Readers living in an apartment complex or managed estate may even have been asked to serve as an OMC director. OMCs, while in form incorporated typically as companies limited by guarantee (CLG), are in substance hybrid entities. They sit at a corporate crossroads between not-for-profit companies, property management businesses and residents’ associations (see Figure 1). Many readers will be familiar with the legacy construction and financial issues facing these companies. High-profile cases such as Priory Hall and Longboat Quay, as well as other less prominent estates, have featured in the press in recent years while corporate governance failings in OMCs receive periodic attention in court reporting. The country’s largest OMCs have multi-million euro annual service charge budgets. And yet, the stewardship of these companies is entrusted to unpaid, untrained directors (the term “volunteer director” is deliberately avoided, as in law, there is no such thing – a director is a director). There is as yet no firm handle on the number of OMCs in the country. However, it is estimated that the upper limit is likely to be about 8,000 companies. New report A recent independent report titled Owners’ Management Companies – Sustainable Apartment Living for Ireland considers issues that will be familiar to those with even a passing knowledge of managed estates and OMCs. The report was jointly commissioned by the Housing Agency and Clúid Housing. The Housing Agency works with the Department of Housing, Planning and Local Government, local authorities, and approved housing bodies (AHB) in the delivery of housing and housing services. Clúid is the State’s largest AHB, managing  just over 7,000 homes across the country. The inadequacy of annual service charges, failure to provide for building maintenance (sinking) funds, and the persistent problem of mounting debtors are just some of the topics assessed. International best practice is examined, and Ontario and New South Wales are among the comparator jurisdictions featured. The future demand for high-density housing is signalled in the context of new Government policy, such as the National Planning Framework and the Climate Action Plan. To audit or not to audit? Recommendations for reform across a range of relevant regulatory systems are proposed. Of interest to the accountancy profession will be the recommendation for the removal of the audit exemption currently available to OMCs, most of which, as noted earlier, are incorporated as CLGs. Companies Act 2014 provides the audit exemption for CLGs. In this way, small not-for-profit companies without shareholders may benefit from a reduced financial and administrative burden. (It should be noted that under sections 334 and 1218 of the Companies Act, any one member of the CLG may in effect demand an audit.) However, while OMCs are not-for-profit, they are responsible for multi-million euro property assets in the form of estate common areas. Considering the centrality of OMCs to property values, good title, and quality of living spaces, the value of an audit to members in terms of assurance, transparency, and governance cannot be overstated. Finance and governance The creditworthiness of OMCs in the context of current under-funding is also considered. Regulation over and above corporate compliance enforced by the ODCE is recommended. Dispute resolution outside of the courts is advocated, as are more cost-effective avenues for service charge debt recovery. Personal insolvency practitioners will be aware that OMC service charge debt is an “excludable debt” under the Personal Insolvency Act 2012. Only with the consent of the creditor (i.e. the OMC) may management fee balances be reduced or written off in a Personal Insolvency Arrangement. The report’s other recommendations include mandatory training for OMC directors, the standardisation of accounts to a format prescribed for OMCs, and enhanced insurance obligations. Reform may be some way off. In the meantime, practitioners should be aware that the Institute’s practice toolkit, Owners’ Management Company PQAs, was updated in 2018. This replaces the 2011 version. As the Institute’s product catalogue notes, and as may be recognised from sectoral weaknesses highlighted in this commentary, although OMCs can be small in size, they may be higher-risk clients. Future regulation of the sector could mitigate a number of the risks identified.   David Rouse FCA is an advisor with the Housing Agency, a director of the Apartment Owners’ Network CLG, and a director of one of the country’s largest OMCs.

Oct 01, 2019
Management

Three years after its commencement, Construction Contracts Act, 2013 continues to provide a pathway to cash flow in the construction sector. By Pat Breen TD This innovative and important legislation for the construction sector, which was commenced in 2016, regulates payments and particularly the timing of payments under construction contracts. While many businesses in the construction sector are aware of this legislation, some businesses may not be fully aware of the detailed statutory protections and obligations set out in the Construction Contracts Act, 2013. One of the key objectives of the legislation is to provide payment certainty for subcontractors, who were considered vulnerable in the payment cycle in the construction sector. As the construction sector continues to expand, cash flow is critical and it is cash flow that is at the core of the Construction Contracts Act, 2013. Therefore, construction businesses should ensure that their payment practices comply with the terms of this legislation. I consider that members of the accountancy profession are uniquely placed to encourage construction businesses across the country to review their payment practices to ensure that they comply with this legislation. I welcome the opportunity provided by Accountancy Ireland to highlight this legislation, and a brief summary of the main provisions of the Act is set out below. Further information on the Act is available on the website of my Department at www.dbei.gov.ie. Applicability of the Construction Contracts Act, 2013 to construction contracts The Construction Contracts Act, 2013 applies to certain construction contracts entered into after 25 July 2016, but not to all such contracts. For example, it excludes: Contracts of a value of not more than €10,000; or Contracts that relate only to a dwelling of not greater than 200 square metres where a party to such a contract occupies, or intends to occupy, the dwelling as his/her residence; or Contracts between a State authority and its partner in a public private partnership arrangement. All other construction contracts must comply with the provisions of the Act and the parties may not seek to exclude a contract from the legislation under any circumstances, whether the contract is an oral contract or a written contract. Construction contracts to which the Act applies must provide for the following contractual terms: The amount of each interim and final payment, or an adequate mechanism for determining those amounts; The payment claim date for each amount due, or an adequate mechanism for determining it; and The period between the payment claim date and the date on which the amount is due. Main contracts and subcontracts Main contractors are at liberty to agree their contractual terms with their clients, subject to adhering to the mandatory provisions required by the Act as outlined above. However, if a main contract fails to fully incorporate the mandatory provisions, then the Act imposes the applicable contractual term or terms set out in the Schedule to the Act, terms which are also applicable to subcontracts. The Act stipulates that all subcontracts must at least provide the following payment claim dates: 30 days after the commencement date of the construction contract; 30 days after the payment claim date referred to above and every 30 days thereafter up to the date of substantial completion; and 30 days after the date of final completion. The date on which payment is due in relation to an amount claimed under a subcontract shall be no later than 30 days after the payment claim date. The Act permits the parties to a subcontract to make more favourable provision for a subcontractor than the above contractual terms. Payment claims An executing party – the party which carries out the work under a construction contract – is required to submit a payment claim notice to the other party no later than five days after the relevant payment claim date. If the other party disputes the amount claimed by the executing party, that party is required to respond to the executing party in writing no later than 21 days after the payment claim date setting out the reason(s) why the amount claimed is disputed and the amount, if any, that it proposes to pay to the executing party. It may be possible for the parties to reach an agreement on the amount to be paid to the executing party. However, if no such agreement is reached by the payment due date, the other party is legally required to pay the executing party the amount, if any, which the other party proposed to pay in its response to the contested payment claim notice from the executing party. This payment shall be made no later than the payment due date in accordance with Section 4(3)(b) of the Construction Contracts Act, 2013. Statutory adjudication of payment disputes The Construction Contracts Act, 2013 also introduced, for the first time in Ireland, a statutory right to refer a payment dispute for adjudication. A ‘notice of intention’ to refer a payment dispute for adjudication must be served by one of the parties to the payment dispute. The parties may then jointly agree to appoint an adjudicator of their own choice, within a five-day period. However, if the parties cannot reach agreement on who to appoint, an application may be made after the five-day period to the Chair of the Construction Contracts Adjudication Panel, Dr Nael Bunni, to request the appointment of an adjudicator to the dispute. The appointed adjudicator, whether appointed by agreement of the parties or by the Chair, is required to reach a decision on the dispute within 28 days. This period may be extended in certain circumstances.   Pat Breen TD is Minister of State at the Department of Business, Enterprise and Innovation.

Oct 01, 2019
Ethics

C-suite executives deploying 4IR technologies have a tough ethical terrain to navigate. Putting in place a policy for ethical usage of technology could benefit their businesses – and society. By Timothy Murphy, Swati Garg, Brenna Sniderman and Natasha Buckley Leaders are increasingly demonstrating that they want their organisations to do well by doing good, and with reason. Doing good can be good for business, especially in an intensifying economic, social, and political milieu that is challenging organisations to reinvent themselves as social enterprises. Deloitte Global CEO Punit Renjen’s Success Personified in the Fourth Industrial Revolution report, released at the World Economic Forum conference in Davos, Switzerland, earlier this year highlights that leaders are putting a greater focus than ever on advancing society through their technology efforts. In fact, leaders rated “societal impact” (including income inequality, diversity, and the environment) as the number one factor in assessing their organisation’s annual performance, ahead of financial performance, customer experience, and employee satisfaction. This view manifests in their actions as well – more than 73% of the surveyed organisations have developed or changed a product in the past year to generate positive societal impact through Fourth Industrial Revolution (4IR) technologies. But as organisations strive to take society forward with 4IR solutions, they are often confronted with a host of ethical issues, which can have societal as well as business ramifications. Examples of ethical “missteps” by companies abound in the media these days. One issue highlighted in the news regularly is that of data privacy, and it has left consumers understandably worried about how their data is captured, saved, and used. Another emerging threat is algorithmic bias, where biased data manifests itself in biased recommendations, but we’re yet to fully understand the ramifications of algorithmic bias. Even lack of inclusivity in technology design can negatively impact consumers, as seen in some smart city designs where people in wheelchairs are unable to access eye-level retina scanners as they require the person to be standing. These ethical issues, and others, have led to product recalls, public backlash and/or lost revenue for companies. In this technologically and ethically complex environment, organisational values matter more than ever. If leaders don’t formulate and implement policies on the ethical usage of technology, it will likely become difficult for them to navigate the Fourth Industrial Revolution. More importantly, it could inhibit innovation and financial growth at their companies. Our survey data from this year’s study reinforces the link between ethics and organisational growth (see the sidebar, “Methodology”), providing further rationale for why companies should care about ethically using 4IR technologies. The study found a positive correlation between organisations that strongly consider the ethics of 4IR technologies and company growth rates (Figure 1). For instance, in organisations that are witnessing low growth (up to 5% growth), just 27% of the respondents indicated that they are strongly considering the ethical ramifications of these technologies. By contrast, more than half (55%) of the respondents from companies growing at a rate of 10% or more are highly concerned about ethical considerations. Ethical concerns don’t always translate into action Most executives responding to our survey were concerned about ethical usage of 4IR technologies. More than 30% of the respondents strongly agreed that their organisations are highly concerned about ethical technology usage and another 50% indicated a moderate concern. Yet when it comes to action, this number dropped significantly – just 12% of the respondents strongly agreed that their companies are actively exploring related policies or already have them in place. So, what’s preventing leaders’ ethical concerns from being translated into ethically driven actions? The answer may lie in the dynamics of the C-suite. Our survey found that concern over ethically using 4IR technologies is not consistent across the organisation (Figure 2). Starting at the top of the C-suite, only 15% of CEOs and presidents expressed strong concern about ethical technology usage (considerably less than the 30% average across the C-suite). The chief information officer (CIO), a role often charged with managing these technologies, averaged only 16%. Contrast this with roles like the chief sustainability officer (CSO) and the chief operating officer (COO) who indicated strong ethical concerns at 50% and 41% respectively, and a clear disconnect emerges between the CEO/CIO’s line of thought and that of the CSO/COO. Given that reputation and social impact are critical aspects of the CSO’s role, executives in this role are more likely to care about ethics. The COO, who oversees enterprise-wide operations, is likely to be more aware of how work is executed and, therefore, have greater awareness of potential ethical issues. However, those with more influence on the 4IR strategy – the CEO and, to a lesser degree, the CIO – seem to be disproportionately swaying organisational policy. Only 12% of the organisations whose executives were surveyed have policies in place or are actively exploring the implementation of policies (tracking closer to the level of concern conveyed by the CEO and CIO) on ethical usage of technology. Extending ethical thinking across the organisation While 4IR technologies offer immense opportunities, they also bring many ethical challenges as they’re poised to transform the way we live, work and interact with each other. As a result, leaders at the helm of companies looking to benefit from these technologies need to navigate a complex ethical environment. Organisations could benefit from ensuring that proper policies are in place and are adhered to. The following steps can help leaders move forward in this direction: Set the tone at the top: if the CEO doesn’t consider ethics a priority, it will likely be difficult to get the rest of the organisation to do so. Not only should the CEO emphasise the importance of ethical considerations in the usage of technology, they should also encourage other members of the C-suite to express their concerns. The CSO and COO, by virtue of their roles, have a unique line of sight into the importance of ethics in supporting growth initiatives. This knowledge-sharing between the CSO and COO and the rest of the C-suite can empower executives in the organisation to tailor their solutions with ethics as a top-of-mind design consideration; Cultivate an ethical culture: ethics is not only an issue for C-level executives to consider, but it is also of prime importance to an entire organisation. It starts with clearly messaging ethical policies and guidelines – and leading by example – but it also includes giving your workforce a voice in the discussion. As senior executives work out strategies to integrate these technologies into every facet of the workforce, it’s important that they provide other employees with avenues to express ethical concerns about their usage; and Iterate the policy: 4IR technologies are rapidly changing and accordingly, policy too should change. Just as government regulation is trying to keep pace with autonomous vehicles and smart cities, organisations should establish constant touchpoints to ensure that their ethical policies keep pace with the rapidly changing technology environment. For CEOs and other C-level executives, integrating the ethical considerations of employees across the organisation and other stakeholders into their day-to-day operations also makes good financial sense. The organisations that set the tone at the top are the ones that are likely to be best positioned to help their businesses – and society – flourish. This article was originally published by Deloitte Insights. View the article at www.deloitte.com/insights/industry-4-0-ethics Methodology This research is an extension of the Success Personified in the Fourth Industrial Revolution report, which is based on a survey of 2,042 global executives and public sector leaders conducted by Forbes Insights in June–August 2018. Survey respondents represented 19 countries from the Americas, Asia and Europe, and came from all major industry sectors. All survey respondents were C-level executives and senior public sector leaders including CEOs/presidents, COOs, CFOs, CMOs, CIOs and CTOs. All the executives represented organisations with revenue of US$1 billion or more, with half (50.1%) coming from organisations with more than US$5 billion in revenue. 65% of the public sector leaders represented organisations and agencies with budgets of US$500 million or more.

Oct 01, 2019

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