Positive Leadership Article in IOD Scotland Newsletter
1. Autumn 2010
www.iodscotland.com
Published for members of the Institute of Directors in Scotland
IoD director-general in
praise of ‘energy city’
p6
Changing the mix
in our boardrooms
p14
Unlock the
secret of
inspiring
leadership
p12-13
IoD Scotland Conference 2010:
Cameron House on Loch Lomond • October 29
New speakers announced • Book your place now
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3. Institute of Directors Scotland: Autumn 2010 COMMENT
The challenge is IoD Scotland
Conference 2010
constant: how we Cameron House
react to it is crucial on Loch Lomond
October 29, 2010
by Raymond O’Hare
Chairman, IoD Scotland
ever before.
However, if your business or Inspiring
IT CONTINUES to be a challenging time
organisation is feeling the pressure at
present, this is both a critical time and an leadership
for everyone in business at present,
and for anyone who has a leadership
ideal moment to step back and look at
exactly what you are doing. How much of
– making
role within an organisation.
I see many people and businesses
your people’s time is being spent on core
activities and on core business goals? It is
the
performing strongly and seemingly
unaffected by the current economic
a time to verify your strategy, ensure that
this is reflected in your business plan, and
difference
conditions, but I also see a number of then focus on clear and regular
companies who are clearly struggling and communication with your teams to ensure Hear Scotland’s
having to make many tough choices that everyone understands what needs to top business
about what they do next, what they focus be done, when and by whom. leaders give their
on and how they prioritise their time and It takes strong leadership to “look up” in
resources. either of these situations, take stock and take on how the
I have two key messages for leaders, make decisions around what is being person at the top
regardless of which category your focused on; and also around what to stop can drive success
organisation falls into. doing. Good leaders will take the time to
First, if your business is strong and ensure that staff understand where the
weathering the economic storm well: this organisation is headed and what their role Book now at
is great news, but this is also the time to will be in taking it there. Sadly, I still see www.iodscotland.com
be most vigilant about staying focused, some companies where everyone is or call 0131 557 5488
being clear with your staff about the working all hours, margins are tight, and
organisation’s strategy and their individual yet the one potential area which could
role in helping to achieve this. yield significant returns for the company is See pages 12-13
It’s easy to get relaxed and even effectively sitting on the shelf because for full details
complacent with continuous success. everyone is too busy to deal with it.
Don’t let this make your This must not be allowed to
organisation lazy. Many of happen. The Institute of Directors Scotland
your competitors who are The challenge is membership magazine is published
not so fortunate at present constant and on behalf of the IoD by
will be focusing and relentless. What we Chamber Media Services,
prioritising very carefully must recognise is 4 West Park Road, Bramhall,
right now, and are likely to that constant Stockport,
come out of this current focus, regular Cheshire SK7 3JX.
situation stronger, leaner, adjustment and an
“
more focused and better environment of Advertising sales:
able to compete than decisiveness and Colin Regan, Chamber Media Services
empowerment are T: 01925 468403
If your business is feeling required at all times, E: colinregan001@yahoo.co.uk
regardless of the highs
the pressure this is an ideal and lows your Production:
moment to step back and organisation will Rob Beswick, Chamber Media Services
look at exactly what experience. T: 0161 426 7957
E: beswick@cssystems.net
you are doing
Although every effort is made to ensure
the accuracy of material contained within
this magazine, neither IoD Scotland nor
IoD Scotland: Contacts and addresses Chamber Media Services can accept any
responsibility for omissions or inaccuracies
in its editorial or advertising content.
Executive Director: David Watt IoD Scotland: 29 Abercromby Place, The views expressed in this publication are
iod.scotland@iod.com Edinburgh, EH3 6QE not necessarily those of the IoD. The
carriage of advertisements or editorials in
For all enquiries, contact IoD Scotland this publication does not constitute an
Telephone: 0131 557 5488 endorsement of the products or services
at iod.scotland@iod.com
Fax: 0131 557 5818 advertised.
www.iodscotland.com
Cover picture: Statue of William Wallace in
www.iod.com/scotland Aberdeen – an appropriate image for an
issue which centres on inspiring leaders
Page 03
4. COMMENT Institute of Directors Scotland: Autumn 2010
Where do we go from here? It’s
not just politicians who decide
ONE THING that Scottish business
people – and the organisations which
Business needs to find its voice elections it would be nice to be in a
position to vote for politicians who
support them – believe completely is to influence the future shape had real control over Scotland’s
that we all need to work in unison to economy and the significant levers
foster long-term economic recovery. of Scotland’s Government, which help it thrive – and also for at
Working together is the only way to least an element of how they raise as
achieve sustainable economic growth
says IoD Scotland’s executive well as spend money.
for Scotland and so too benefit the director David Watt Now is the right time to develop
wider prosperity of the UK. these thoughts and drive forward a
Clearly, business has the prime role Parliament in late autumn this year, set of solutions which can help the
in delivering such economic recovery time is now pressing and should focus private sector and the wider Scottish
and continued growth. However, to minds among the Scottish business economy grow.
achieve that, it is paramount that community and others to get them The IoD in Scotland will be
Government also has and uses the started on leading discussions within developing its manifesto for next
appropriate levers required to a wide range of settings and client year’s election over the coming
facilitate an environment from which groups. We would support a months and we will be strongly
such growth can flourish. wholesale, interrogative civic debate emphasising that practical action to
In that respect we require a robust on the ramifications of increased support our companies and so our
debate on exactly how this might powers for Holyrood, particularly economy needed – not just rhetoric.
happen north of the Border and now around the contentious issues of tax It is early days; however, the new
is the time to have it, with a new raising and what that would ultimately Coalition Government in Westminster
Government in Westminster and one mean for the nation’s economy. appears determined to adopt the
within the year in Holyrood. We need The Institute of Directors has some recommendations of the initial
to seriously examine the potential of reservations about the potential for Calman Report regarding the future
any changes to improve or worsen our some of the changes suggested which role of the Scottish Parliament. A
economic performance and to may cause additional industrial costs. number of things have moved on
consider closely what the implications However, equally, we have always had since Calman’s final report, among
will ultimately be for Scottish business a problem with a Parliament that them the significant deepening of the
and our wider economy. simply spends money and does not recession, a UK election bringing new
The recently launched campaign for have any accountability for raising it. political attitudes to Downing Street
additional fiscal responsibility at Going into next year’s Scottish and a new attitude to devolved
Holyrood – or “devolution-plus” as governments, not to mention the new
some commentators have dubbed it – coalition’s likely taxation policy.
requires us all to get involved in such a There seems to be an opportunity
debate. A debate, by the way, not for reasonable debate before
merely limited to the business everyone dives off into the hustings
community alone but involving much for next year’s Scottish elections
wider aspects of Scottish civic society. assuming their traditional positions.
It is certainly a major matter of Central to these debates, must be
importance – probably determining the voice of Scottish business – large
our taxation setting for many years to and small. Business growth is, after all,
come, possibly for a generation – and ultimately what will get us out of
it is vital it’s not just decided by the recession and drive our economic
political classes without genuine ref- growth in the future. We can’t just
erence to the real growth generators. leave it to politicians to think up and
With legislation around this issue apply solutions: they need our help
due before the Westminster and advice.
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Page 04
5. Institute of Directors Scotland: Autumn 2010 IOD INFORMATION
Keeping in touch: A couple
of things to remember...
Wherever your work takes you... the IoD
would like to keep in touch via email...
... that way we can make sure
you know first about all our
events and members’ services...
...so please make sure we have
your up-to-date email address.
Email IoD Scotland’s admin team
at iod.scotland@iod.com with
your current details, and we’ll
make sure you don’t miss out
on the latest news...
... wherever you are!
New: IoD
And bookmark podcasts on
us online! leadership
Check out our ON LINE NOW: See the IoD
enhanced website: Scotland website for
podcasts on leadership.
www.iodscotland.com IoD Scotland chairman
Raymond O’Hare talks to
Including - some of our most respected
business people on the role
• Comprehensive details of leaders have to play in their
IoD Scotland events organisations.
The series kicks off with Sir
• Our services to you: what Sandy Crombie, former chief
membership means executive of Standard Life
and now a non-executive
• Training and director
director for RBS.
development Go to www.
• News, views iodscotland.com
now to hear his
and opinions fascinating and
• Book online for all thought-
provoking
events and courses views.
Page 05
6. NEWS Institute of Directors Scotland: Autumn 2010
Tell the world your success,
IoD chief urges Aberdeen
Coalition on right track but more needs to be done on relaxing regulations
IOD DIRECTOR GENERAL Miles Templeman over international confidence and the scale and through difficult decisions better than a single
urged Aberdeen to do more to promote its impact of the anticipated public sector cuts. But party administration could.
value to the UK economy during a visit to the he stressed: “It’s important not to be too “In terms of direction, we are strongly behind
city at the start of September. pessimistic. I don’t see evidence of the ‘double what the Government is trying to do. They seem
Mr Templeman told an IoD lunch that he dip’ recession.” to be non-ideological and are looking at the
thought the city was not as appreciated The economy was also not being helped by issues on a case-by-case basis. They also seem
elsewhere in the UK as it should be, but that skills shortages, which he acknowledged was a to understand that success lies in business
perhaps some of the fault for that lay with the particular problem in Aberdeen. We have to strength,” he said.
city itself, for not doing enough in stating the recognise that 40 per cent of children leave The depth of the coming public spending
value of its role. school with no qualifications: that was a statistic cuts would change the whole structure of the
The city had made an immediate impact on that had to be challenged. UK public sector, he admitted, and it would be
him, he said: “I’m already impressed with the He was keen to see British businesses take the painful, but putting off taking the painful
ambition of Aberdeen. I had not appreciated initiative more and look to export. “British medicine will only delay recovery. It was no
how strongly it wants to be the centre of all industry has got to drive forward and take the good preserving jobs artificially.
types of energy production. The city needs to opportunities that exist overseas,” he said. The Government had not got everything
tell Britain and Europe of that ambition.” Turning to the political scene, he said that at right, however, particularly on the regulatory
He was keen to learn as much as he could first there was concern over the burden. A commission must be set up to look at
about the city and its ambitions during his creation of a the issue, he said, but there had been little
visit, particularly in the development of coalition movement on this issue thus far. He highlighted
renewable energy. “I’m here to get a government. the problems of infrastructure planning. In the
detailed understanding so that I can However, “so far time it took Britain to approve Terminal 5 at
speak about these issues with ministers.” so good”. The Heathrow, China had built 400 airports, he said.
During his address, Mr Templeman gave coalition is “I am not yet convinced Government
his assessment on the current economic working well, understands how much of an issue planning is
picture as well as the IoD’s early reaction and has the to business,” he said, but he knew that
to the new Government. On the potential to Aberdeen’s business community fully
economy, he believed we were drive understood its significance: “I have already seen
bumping along the bottom a the issues of transport around Aberdeen”, he
little, but his perception was said.
that Aberdeen was He ended by pointing out the difference
performing better than between business and government. “At the end
the rest of the country. of a board meeting you may feel good because
Elsewhere, he said, “I get you have a strategy, but business knows
a strong impression of strategy is just a beginning. Government sees
almost a pause in the the strategy as the achievement. We need to see
economy. Companies that Government focusing on delivery.”
were talking about slow Most of what we want from Government is
growth are now in a static less, he said: Less intervention, less regulation,
position.” As he travelled less interference and more consistency of policy.
round the country there
was a general impression Talking points: Pictured outside the Marine
that it is too early yet to Operations Centre at Aberdeen Harbour are (from
push forward. left) David Watt; Cameron Ramsay, the new
A number of factors chairman of IoD Aberdeen; Colin Parker of
were holding the economy Aberdeen Harbour Board; Miles Templeman and
back, including concerns Mike Bowyer, IoD Aberdeen’s deputy chairman
Book your tickets now for the IoD Scotland Conference 2010
Inspiring leadership –
making the difference
Cameron House on Loch Lomond • 29 October
• See page 29 for more details
Register online at www.iodscotland.com
Page 06
7. Institute of Directors Scotland: Autumn 2010 FEATURE ON: REGISTERS OF SCOTLAND
The Registers of Scotland is exporting its expertise in property and land registration around the world, helping
fledgling and troubled nations gain confidence in their own systems and providing economic stability
R
EGISTERS of Scotland (RoS) is well-
known for its role in safeguarding
records relating to property and
land ownership in Scotland. What
Scotland happy to
export the wisdom
is less publicised is the other life-changing
work the organisation undertakes, including
consultancy on an international level.
RoS became a Trading Fund in 1996 and is a
self-financing, commercially-focused
of its Registers
organisation, providing customer-centric
services at no cost to the public purse. RoS’s
income comes from its registration and
information provision work and is largely
dependent on the economic
climate and the buoyancy of the
property market.
Scotland is a world-leader in
developing systems for
recording land ownership and
land transactions, with a
heritage dating back to the 12th
century. This experience is
being put to good use by RoS’s
International Consultancy Group
(ICG), which has been appointed
by governments, especially in
developing countries, to
improve their land
administration processes.
The ICG manages all forms of
international liaison for RoS,
such as general visits from
representatives from other land
registration organisations,
approaches from organisations
and individuals for information Helping hand: A symbol of the fledgling
about the Scottish system of to reduce poverty. Kosovan nation, Newborn. RoS has played a
land registration, and requests for support for Kenny Crawford added: “Developing vital part in helping Kosovo establish a stable
international project activities or, more recently, countries which are building new land climate for land and property registration
leading international projects. information systems have the benefit of not
Kenny Crawford, head of commercial services being restricted by existing systems, and can campaign on First Registration activities and to
at RoS, commented: “We began developing an therefore implement optimal solutions from the mobilise support for the implementation of
international expertise in land law and very beginning. This is where RoS can use its government reform of the Immovable Property
registration in the 1990s and believe we are at experience and expertise to help build these Registration Office (IPRO), the equivalent of the
the forefront of land registration practice. In systems.” Registers of Scotland in Albania.
1996, we were appointed advisors to the Isle of RoS is currently undertaking projects in the Kosovo: In 2010, RoS started working with
Man Government in relation to the following countries: the Kosovo Cadastral Agency (KCA) to assist
computerisation of its land registration Malawi: The Republic of Malawi and with an awareness campaign to improve
activities. Since then, the ICG has been involved Scotland have long-standing ties of friendship communication both internally between KCA
in numerous land administration projects and in 2005, the governments of Malawi and and municipal cadastral offices and externally,
worldwide, where we provide a variety of Scotland entered into a Co-operation between the cadastral authorities and the
expertise to such projects.” Agreement. RoS is collaborating with the general public in Kosovo. This is funded by the
Land is the ultimate resource and its role in a Malawi Government to deliver improvements World Bank.
national economy is hugely important but not for the Ministry of Lands. This partnership has Uganda: RoS is working on the project
always obvious. Without secure land rights, the added benefit of identifying opportunities ‘Design, Supply, Installation and
there is no commitment to sustainable for RoS employees to develop their skills and Implementation of the Land Information System
development, as there will be little willingness experience through deployment of their and Securing of Land Records’. RoS will
or confidence to make long-term investments. expertise on various projects relating to land specifically provide the study tour element of
The question of liquidity and mortgaging of administration in Malawi. This project is part- the project, including the evolution of the
land and real estate assets is imperative to funded by the World Bank’s Business registers, IT, HR, business planning, and
addressing poverty, financial and capital market Environment Strengthening Technical management at enterprise level, etc.
development and large-scale economic growth Assistance Programme. In addition to these specific projects, the ICG
and stability. For many people, personal Additional co-ordination of the project is has also been actively involved in hosting study
ownership of a house, apartment or land plot is being provided by a registered charity, visits and supplying training services in both the
one of the most valuable assets they can hold. Challenges Worldwide, which offers UK and abroad. RoS has hosted visits from land
Developing efficient land administration, opportunities for individuals to volunteer to administration officials from many countries
redistribution and reform policies, which place work in developing countries. around the world, including China, Kenya,
the rights to land and water in the hands of Albania: RoS has been working as part of a Lithuania, Namibia, Russia, Thailand, Iraq and
ordinary people, can provide security and help consortium to complete a public awareness the Ukraine.
Page 07
9. THE SCOTTISH DIRECTOR
DEVELOPMENT CENTRE
EXECUTIVE COACHING AND MENTORING
Support from respected, senior, business practitioners
WHAT WE DO… WHAT WE WON’T DO…
The Scottish Director Development Centre supports But there are some things we won’t do. You won’t
directors and senior managers in their work to enhance get an inexperienced coach/mentor and you won’t
performance, business achievement and success. Our get someone upon whom you become dependent
Executive Coaching and Mentoring Service is one of the in the longer term.
tools we provide to support you in your role.
Our qualified coaches and mentors are all well
Individuals may wish to: respected business and corporate practitioners with
� Increase confidence a wide experience and knowledge across a variety of
� Set clear personal outcomes business sectors, industries and roles. Their task is
� Improve decision making to coach/mentor you with particular issues in mind,
� Reduce stress and then step back to let you get on with it!
� Lift performance
� Gain creativity
� Increase credibility
� Solve a specific business issue “Coaching gave me a chance to speak my
Organisations may wish to: mind, voice my concerns and bounce ideas”
� Retain key people CEO, Fish Processing
� Improve staff management skills
� Reduce conflict
“The coaching has shown me the value of
� Support high flyers
� Increase Director/senior manager commitment talking to someone from outside the business
on a confidential basis. I now feel more
Executive Coaching & Mentoring
� Challenge traditional thinking
confident, with a more structured approach”
Managing Director, Aggregates
“Coaching has been useful in getting me to
reflect on issues … It makes me take time
out to think about what I’m doing – and can
flag up issues I may not be addressing.
It’s good to discuss with someone who
understands business – and who comes
up with some different ideas.”
CEO, Housing Association
Tel: 0131 524 9890 director.scotland@iod.com
10. SKILLS Institute of Directors Scotland: Autumn 2010
IoD joins art school to design
trail-blazing training package
Creating cultures of innovation
through creativity and design:
The Glasgow School of Art and
the Institute of Directors
IOD SCOTLAND has teamed up with the
world-renowned Glasgow School of Art to
produce an innovative training programme
that it is hoped will create a new wave of
flexible business leaders.
The programme will address skills
utilisation through transformational learning
with leaders and managers in applying
creativity through design. The focus will be
on training leaders how to use the
knowledge and expertise of their workforce
in applied creative projects which have the
benefit of generating innovations for the
business or service.
Through collaborative creativity processes
and methods, we will look to create ‘T-
shaped’ thinkers who can use their skills
flexibly and integrate them optimally with • to create a culture of creative or markets, and initiate the change
others across a range of projects. collaboration and innovation, evidenced towards an enhanced culture of
This approach addresses the challenge in compelling ideas for new products, collaboration and creativity in their
identified in the New Horizons report from services or markets. organisations.
the Joint Future Thinking Taskforce on The project will use Glasgow School This output will be designed so that it
Universities, which states that “the nature of of Art’s expertise in creativity, design can be applied across all of Scotland’s
skills that are needed in a knowledge and innovation, together with the key sectors, and will be applicable in
economy is changing: a premium is being knowledge and expertise of Institute of both business and service organisations.
placed on creativity, flexibility, adaptive Directors’ membership, to create a We have had the benefit of working
capacity and the ability to work in complex leading-edge training package for with Skills Development Scotland, for
teams across disciplines”. leaders, which will enable them to example, to apply design thinking in
Our proposal is a means of utilising skills understand and apply design thinking their service provision. We believe that
to best effect: in the individual and collective in their organisation in a customer- this approach – of using the design
development of the workforce, to create focused process that encourages process as an applied tool for
higher value innovations, increase innovation. synthesising multiple inputs to achieve
productivity through better collaboration, The goal is to enable leaders to better a common goal – will achieve the SFC’s
and to generate value for businesses and deploy existing skills, creativity and goals of improving the utilisation of
services in Scotland. talent in their workforce. This approach skills and enhancing innovation
The overall objective for businesses is to has several advantages: it places high capability in the workforce.
create a ‘culture of innovation’ in which The project will also identify areas to
creativity is a collective skill embedded in What’s T-shaped thinking? embed the thinking in both
the organisation. In other words, it is ‘T-shaped’ individuals are those possessing undergraduate and postgraduate
assumed that while there is a marginal depth of skill (signified by the vertical stroke of education in Scotland with partners in
benefit for a company in creating a single the ‘T’) as well as a collaborative personality creativity and design, business
innovation, there is an overall general (represented by the horizontal bar). Their management, and service innovation.
benefit for a company to create the The Glasgow School of Art will
in-depth knowledge allows them to
capability for sustainable innovation. To collaborate with the University of
achieve this, we propose to work participate effectively in the creative process. Glasgow and other partners to develop
collaboratively with industry leaders Their co-operativeness requires (a) empathy new Masters courses, pathways and
through the Institute of Directors to explain and (b) enthusiasm for other people’s work. programmes in this area.
how creative thinking and design processes Scotland has a long tradition of
can be integrated in organisations to value on employees and their potential, invention and innovation, placing us in a
improve productivity in areas key to the it uses leadership creatively and strong position to work together to
future success of the business: effectively, and is well suited to creating create the capability within our
• to achieve a fuller integration and an innovative workplace within the businesses, our society and our
optimisation of skills in the workplace constraints of the current economic economy for sustainable innovation.
• to train high level leaders in the context. In addition, we will develop ‘Creating Cultures of Innovation’ is
understanding and application of creative training courses so that leaders can supported by the Scottish Funding
processes apply this thinking in actual projects in Council and forms part of the Scottish
• to enhance the creative capability of the order to embed the thinking in practice, Government’s strategy for Skills
workforce achieve innovation in products, services Utilisation.
Page 10
11. Institute of Directors Scotland: Autumn 2010 FINANCE MATTERS
Relief on its way for those
showing a little enterprise
T
HE Enterprise Investment Scheme
(EIS) was launched to assist unlisted
UK trading companies seeking
financial backing. Provided EIS
investors satisfy various conditions, they can
claim a range of tax reliefs both on their initial
subscription and on any future sale of the EIS In the current constrained lending environment,
shares. The recent increases to both income securing affordable finance to fund future
tax and capital gains tax have increased the
value of the EIS tax reliefs set out below: development and expansion plans can be
problematic. Fiona Donaldson, of
Income Tax Relief: An income tax credit of Springfords Chartered Accountants, takes
up to 20 per cent is available on the first a look at the Enterprise Investment Scheme
£500,000 of qualifying subscription in new as one possible route to achieve this.
shares of an EIS company.
Capital Gains Tax (CGT) Exemption: EIS
shares held for a minimum three-year period
can be sold free of capital gains tax, as long as investment is made, with a limited carry-back of sale, not the original owner who benefitted
any income tax relief has not been previously against liabilities of the previous year. Any in the first instance.
withdrawn. Should a capital loss arise on the surplus will be lost, so planning is therefore The recent Budget announced that
shares, it is reduced by any income tax relief required to obtain the maximum relief. The legislation is to be introduced which will
given on the initial subscription and thereafter same applies when claiming a capital loss as prevent gains realised after June 22, 2010 from
can be used to reduce capital gains tax an “income” loss. both being deferred under EIS and qualifying
elsewhere or “converted” into an income loss Claiming the income tax relief may simply for Entrepreneur’s Relief. Assuming that the
to reduce income tax liabilities in the year the reduce a tax liability rather than producing an legislation is enacted as anticipated, investors
loss arose, or the previous year. actual refund, but either may also have the may therefore be faced with a choice of paying
effect of reducing future payments on less tax now or more tax later.
Capital Gains Tax Deferral: Chargeable account, producing a further cashflow
gains arising on any asset can be “reinvested” advantage. The future
into EIS shares, deferring the capital gains tax It is important to remember that in the case EIS remains a beneficial way for investments
liability which would otherwise arise. The EIS of deferral relief, the capital gain is being to be made in UK businesses, providing
investment must be made within one year deferred and not eradicated and will become funding for growing companies and a very
before and three years after the gain arises. taxable when the EIS shares are sold in the attractive range of reliefs for the investor.
future at the rate applying at that time (unless Income tax reliefs can directly reduce the
Obtaining the reliefs the deferred gain is reinvested into further current and/or previous years’ tax cost, while
To secure these reliefs, conditions must be qualifying investments). To secure the CGT the CGT reliefs may result in a tax-free disposal
met by both the company and the individual. exemption, which can, if the EIS company is a of the shares and the potential to ease cash
It is here that the legislation becomes complex success, be the most valuable relief, it is crucial flow difficulties by deferring a CGT liability.
as the rules which determine whether a to be aware of when the three-year qualifying For more detailed advice on this or any
company or an investor will qualify under the period ceases. other tax issues, please contact Fiona
EIS regime are notoriously rigorous. It can be EIS reliefs will be withdrawn if the investor Donaldson or Ian Haynes at Springfords on
possible to fall foul of these labyrinthine rules or company ceases to qualify for EIS status and 0131 440 5000.
without even realising it. care should be taken to avoid any action or Alternatively, see www.springfords.com
The main qualifying conditions for a activities on either part that could affect this.
company revolve around its size and nature of Springfords recommend that regular reviews
the trade, the amount to be raised (which are undertaken to ensure that the company
must be paid in cash) and how the and investors continue to be EIS compliant.
subscriptions are to be spent. Spouses or civil partners can transfer EIS
For the individual, the foremost concerns shares between them free of CGT and without
are the level of their investment in the losing EIS reliefs. Interestingly, if the shares
company, prior or current connections with subsequently cease to qualify for reliefs, any
the company, and the value they expect to disallowance of tax credits is made on the
receive from the business in return for their spouse/partner owning the shares at the time
subscription.
“
This is an extremely simplified and very
basic overview of just part of the underlying Claiming the income tax relief may simply reduce a tax
legislation. Anyone aiming to qualify for EIS,
whether as an investor or company owner,
liability rather than producing an actual refund, but either may
should take advice at the outset. also have the effect of reducing future payments on account,
producing a further cashflow advantage”
Using the reliefs
The EIS income tax credit can be set only
against income tax liabilities in the year the
Page 11
12. EVENTS Institute of Directors Scotland: Autumn 2010
IoD Scotland Conference 2010
Cameron House on Loch Lomond • 29 October
Inspiring leadership –
making the difference
W
E’RE just over a month away from Gary Kildare is a Scot of truly global reach. As
finding out just how the really IBM’s vice-president, human resources, for
inspiring business leaders make a Americas, Europe and Asia Pacific, Gary is
difference to their organisations – at the IoD accountable for 400,000 employees round the
Scotland annual conference world. A confirmed ‘internationalist’, he has
To be held at the stunning Cameron House on deep experience of major international business
Loch Lomond – recently named the UK’s Hotel transformation, acquisitions, talent and change
of the Year 2010 and a suitably inspiring location management and is interested in securing
for this prestigious event – on October 29, the competitive business advantage through
event will showcase the leadership talents of people.
some of the country’s top business people, The third new speaker also has an IT
including Lord Robert Smith, chairman of the background, Robert L McDowell, vice-
organising committee of Glasgow 2014, the president, information worker business value,
Weir Group and Scottish and Southern Energy; Microsoft Corp. Robert is dedicated to helping
Bob Keiller, CEO of the global oil and gas customers maximise their use of current
engineering company Production Services Microsoft Office technologies in ways that
Network; and Peter Vardy, the chief executive of significantly add business value to their
car retailer Peter Vardy Ltd. organisations.
And to this impressive list we’ve recently Overall, our six speakers offer an impressive
announced three more speakers, all of whom depth of experience across all business sectors.
will bring their own considerable talents to bear In addition to the keynote addresses, the
on our spotlight issue of how business leaders conference will also feature a number of
can make the difference in post-recession workshops on themes connected to developing
Conference Scotland. inspiring leadership, and a showcase of
speakers: Sue Bruce, currently the chief executive of inspirational young people from the Prince’s
Sue Bruce, Aberdeen City Council but soon to be taking up Scottish Youth Business Trust (PSYBT) with a
Gary Kildare the same role with Edinburgh City Council, has a black tie dinner to round off proceedings at the
and Robert challenging leadership role as she tries to end of the day.
McDowell deliver high-quality services as the spending So join us at Cameron House on Loch
cuts bite. Sue will offer an insight into how the Lomond to hear about the common
person at the top can manage these demands denominator of all organisations that flourish,
while keeping staff morale high and focused on no matter what the market conditions: truly
service delivery. inspiring leadership.
“As Scotland comes back from recession the spotlight is on those who inspire
leadership, those who can and will make a difference to Scottish business and
its economy. This year will be important for seeking opportunities, facing
challenges, understanding change and moving forward in pursuit of new
successes. Are you equipped to take your organisation forward?
Come along to the IoD Scotland conference on Friday, 29 October and tap into
a wealth of experience and knowledge from top business minds – not just
‘talkers’ but ‘do-ers’ David Watt, Executive Director, IoD Scotland
Reserve your place now!
Page 12
13. Institute of Directors Scotland: Autumn 2010 EVENTS
“
The stunning Cameron
House on Loch Lomond
– recently named the
UK’s Hotel of the Year
2010 – is a suitably
inspiring location for this
prestigious event...
Event: IoD Scotland Conference 2010 Conference
Venue: Cameron House on Loch Lomond speakers:
Date: Friday, October 29 Already
Time: Conference begins at 10am, concluding 5pm confirmed to
Conference dinner begins at 7pm with pre-dinner drinks speak at the
conference
Concludes at 11pm are Lord
Cost: Conference Robert Smith,
Full delegate (24hr) * – member £385.00 + VAT Peter Vardy
Full delegate (24hr) * – non-member £435.00 + VAT and Bob
Day≠ delegate – member £205.00 + VAT Keiller
Day≠ delegate – non-member £235.00 + VAT
* 24hr delegate rate includes full day attendance, conference lunch, conference
dinner and overnight accommodation on Friday, 29 October
≠ Day delegate rate includes full day attendance and conference lunch.
Excludes accommodation and dinner.
Conference dinner only
Member £105.00 + VAT
Non-member £125.00 + VAT
Our guest speakers
OUR pre-dinner speaker will be Michael Russell MSP, OUR post-dinner entertainment will be provided by
Cabinet Secretary for Education and Lifelong Learning. John Lenahan, an American entertainer who has
A graduate of Edinburgh University, Michael worked become a popular and well-established star in the UK.
in the media from 1974 to 1992. He joined the Scottish Hailed by The Guardian as “the mascot of a magical
National Party in 1974 and held a number of senior renaissance” , he was thrown out of the Magic Circle for
party posts before becoming the party’s first full time revealing the secret behind a card trick used by con
Chief Executive in 1994. artists to fleece unsuspecting victims.
He was elected to the Scottish Parliament in 1999 as John starred in BBC’s Secrets of Magic and hosted his
a Regional Member for the South of Scotland. In 2004 own BBC2 series, Stuff The White Rabbit. Other credits
he stood for the leadership of the SNP. include presenting the travelogue Open Road and
Mr Russell lost his seat in 2003 and returned to a appearances on How Do They Do That?, TFI Friday and
media career but was re-elected for the same region in Richard & Judy. He also fronted ITV’s HoaxBusters, again
2007. Before his current post he was Minister for lifting the lid on scams, and has toured the world
Environment, followed by Minister for Culture, External supporting the likes of Victoria Wood, Lenny Henry
Affairs and the Constitution until 2009 when he was and Jack Dee with his finely honed corporate cabaret
appointed Education Secretary. act.
He is the author of seven books including one novel,
has one son and lives with his wife in rural Argyll.
To book:
See the booking form included in this issue... or book online at www.iod.com/scotland ... or for further
details, contact the event organisers, First City Events (Scotland) Ltd on 07721 530115 or 07711 432745
to reserve your place. Alternatively, call the IoD head office on 0131 557 5488.
Page 13
14. EVENTS Institute of Directors Scotland: Autumn 2010
Breaking down the doors
to the boardroom
IOD SCOTLAND is hosting an all-day This is the third year that IoD Scotland has
Event: Women into the Boardroom
conference which aims to help break down Venue: George Hotel, George St, run a conference focusing on women in
some of the barriers preventing the Edinburgh business. Discussion points for this year‘s
country’s top female business leaders from Date: Thursday, September 30 event include women leaders in large
taking their rightful places in the corporate businesses, leading a corporate
boardrooms of our biggest businesses.
Time: 8.30am - 2pm portfolio career, the public boardroom and
Just 12 per cent of the current FTSE 100 Price: £60 + VAT (members), promoting your own image: what do you
have female board members – a figure which £70 + VAT (non-members) want people to say about you?
is reflected in Scotland’s top private and public Book: Call IoD Scotland on Speakers include Jann Brown of Cairn
sector institutions, too. Clearly this suggests 0131 557 5488 or Energy, Jane Wood from Scottish Business in
women are woefully under-represented in UK email iod.scotland@iod.com the Community, Linda O’Donoghue, IBM, and
boardrooms, so on September 30, at the or book online at Karen Carlton, the Commissioner for Public
George Hotel, Edinburgh, IoD Scotland is www.iod.com/scotland Appointments in Scotland. Caroline
looking to put this right. Donaldson and Lorna Hudson from Individual
We’ve pulled together an impressive line-up Caroline Donaldson, a founding director of Impact will facilitate workshops during the
of leading female executives to shed some business consultants Kynesis, commented: “All day, focusing on specific issues.
light on the challenges facing women in too often there are too few women in the After researching delegates’ views from
business, and by the end of the day we hope pipeline gaining the experience needed in previous conferences, this year’s event will be
to have inspired delegates to re-focus their executive roles. We need to be more proactive more interactive, with extra time built into the
efforts in tackling this inequitable split in the in the recruitment process, and although there schedule to allow more general discussion
boardrooms of Scotland’s businesses. are a number of voluntary initiatives over issues raised during the day and an
One of the conference workshop facilitators, underway, it seems more has to be done.” extended Q & A session with the speakers.
Karen Carlton
Conference speakers:
Jann Brown Mrs Linda O’Donoghue
Finance director, Cairn Energy PLC Director, IBM, and
Greenock Site Executive
Jann Brown is both the finance director of
Cairn Energy PLC and sits as a non-executive Linda O’Donoghue joined IBM in
director on the Cairn India board and is SID 1988 as a sponsored CIMA
on the board of Hansen Transmissions Jann Brown (Chartered Institute of
International, an engineering company listed Management Accountants)
in London. As such she is well acquainted Karen Carlton student.
with the airports between the UK and the Her first management position, after
Commissioner, Public Appointments
rest of the world. qualifying with CIMA, was financial services
She is one of a handful of female finance in Scotland manager in 1993, followed by further finance
directors of FTSE listed companies having management roles.
taken on the role at Cairn in November 2006 Karen’s career spans both the public and Linda moved from finance in 2003 to take
eight years after she joined the company. private sectors in the UK and abroad. Her up the position of project manager, contact
Jann is an all-round finance professional with early years were spent in the health service centre optimisation where she was the lead
experience of operational and corporate and the hospitality industry before moving project manager for Europe, formulating
accounting, taxation, planning and to Australia where she worked for the strategy IBM’s contact centres in Europe,
negotiating transactions, raising finance and Victoria Government during the creation of Middle East and Africa (EMEA).
dealing with external stakeholders - its industry training commissions. On her In 2004 Linda became project manager,
governments, their agencies, shareholders, return to Scotland Karen worked in a business growth initiative which focused on
analysts and the banking community. number of senior HR roles, including as the the commercialisation of IBM’s integrated
The finance function in Cairn is very much first director of Investors in People Scotland. supply chain across EMEA.
a team that aims at all times to work with Karen then became MD of an organisation 2007 saw Linda take executive
senior management in leading cross-cultural development company, before setting up responsibility for the solutioning and service
and cross-functional teams to achieve her own business providing HR and delivery for all business transformation
results. This approach paid dividends in organisation development services. As part outsourcing supply chain management
2008 when the Company received the of her portfolio, she became an independent clients in EMEA.
Accountancy Age 2008 Finance Team of the assessor monitoring Scotland’s public In March 2010, Linda took on the
Year Award. appointments process. She was appointed additional role of Greenock Site Executive,
Jann holds an MA from Edinburgh Commissioner in June 2004. the first time a woman has held that position
University and joined Cairn in 1998 after a This role is part-time; she is also a member in its 60-year history.
career in accountancy. She is a member of of the appointments panel for the BBC Linda is also the Scottish Leader for IBM’s
the Chartered Institute of Taxation and sits Audience Council and is a NED of the gender diversity focus groups, Connecting
on the Council of the Institute of Chartered Broadcast Training and Skills Regulator and Women@IBM initiative.
Accountants of Scotland. the Royal Zoological Society of Scotland. Linda is married with two sons.
Page 14
15. Institute of Directors Scotland: Autumn 2010 EVENTS
Conference speakers:
Events diary
IoD Scotland Golf
Challenge 2010
Date: Friday, 24 September 2010
Time: First tee-off 1:30 p.m.
Venue: Ladybank Golf Course
Cost: £70.00 + VAT
IoD Scotland invites you to enjoy an
afternoon of golf at the glorious Ladybank
Golf Club and to compete for our three
trophies.
The golf competitions include the inter-
regional Golf Challenge for the Ian Stevenson
Trophy, as well as individual competitions for
the Corporate Risk Trophy and the Bowring
Trophy - the individual stableford and scratch
Jane Wood, Chief executive, competitions.
Ladybank was a final qualifying venue for
Scottish Business this year’s Open and is widely regarded as one
in the Community of Scotland’s top courses.
First tee-off time is 1:30 pm. We start Speaker: Gavin Hastings
An experienced and high-level strategist proceedings with a soup-and-a-roll lunch
and communicator, Jane has worked with from 12:15 before the golf, and end with a the performance of your business from the
both national and local governments on two-course meal to end the day at approx varied experiences of the co-founders of
developing public/private sector 6pm followed by a presentation of prizes. The Positive Leadership Limited, Graham Watson
partnerships in the areas of regeneration, fee covers the cost of both meals and the and rugby legend Gavin Hastings OBE. For
community asset management, retail-led prizes. this unique event they will joined by a special
regeneration and corporate responsibility. This is a fun event played in a convivial guest, former England rugby star and current
Previously head of corporate affairs for atmosphere with pleasant company and, coach of Scotland, Andy Robinson.
Scotland and Northern Ireland for Alliance hopefully, under fair skies - well worth a day Positive Leadership Limited (www.
Boots, Jane is also chair of Essential out with business colleagues. When booking, positiveleadership.co.uk) has developed a
Edinburgh, Scotland’s largest Business please inform us of all handicaps. proprietary leadership strategy which
Improvement District, and the founder of optimises the performance and presence of
Retail Rocks, a private/public sector retail- How to Book: leaders throughout an organisation and the
led regeneration model. Contact IoD Scotland on 0131 557 5488 or results of the organisation, even under
She is a member of the CBI Scotland iod.scotland@iod.com. Alternatively, see the pressure. The Positive Leadership strategy is
Council, member of the First Ministers booking form included in this issue or book supported by international best practice in
National Economic Forum, Board director online at www.iod.com/scotland or see www. leadership theory and application, business
of Institute of Directors Scotland, and iodscotland.com and corporate finance strategy and the high-
member of the Ministerial 20:20 Climate performance environment of elite sport.
Change Delivery Group. Prior to Alliance Lessons from Optimal performance is achieved by
aligning your business strategy with the
Boots, Jane worked as the Scottish director
of one of Europe’s largest public affairs the Six Nations values of Positive Leadership. A strategy
consultancies, and as a marketing director Living leadership values, even under begins and ends with values - a prioritised
for a major retail and commercial property pressure, to achieve desired results: listing of what is important to you. Once you
developer. Jane is also a governor of know what you value as a leader, you can set
Pitlochry Festival Theatre. Date: Tuesday, 28 September goals to help you bring about end results that
Jane, who was educated abroad and in Time: 7am - 9am are aligned with your values.
St. Andrews, has a keen interest in the arts. Venue: Apex Hotel, 27 Waterloo Place, This breakfast event will show you what
She has four children and lives in East Edinburgh, EH1 3BH sets winners apart in business as well as in
Lothian with her husband, Scottish Cost: £40 + VAT members; sport.
contemporary artist, Christopher Wood £45 + VAT non members See page 26 for more on this.
RSW. The Institute of Directors would like to invite
you to attend a unique breakfast seminar
facilitated by one of Scotland’s all-time rugby How to book:
Book online greats...
Values + Strategy = Results. This is Positive
This event is being managed by Sandra Light
and Gillian Rose of Cognito Events. To book
Reserve your place at the Women into Leadership(TM). your place, email Gillian@cognito-events.com.
the Boardroom conference, at Hear about how you can apply this simple Alternatively, please call 0141 639 0708 for
but highly effective formula to help improve more information.
www.iod.com/scotland
or call
0131 557 5488 More events – turn over to p16 » »
Page 15
16. EVENTS DIARY Institute of Directors Scotland: Autumn 2010
The wind of change in energy production
Lunch with Steve Remp, Chairman, SeaEnergy PLC:
Refocusing from oil and gas to offshore renewables
Date: Thursday, 28 October
Venue: Royal Northern University Club, 9 Albyn Place, Aberdeen
Time: 12.15 pm - 2.00 pm
Price: £25 + VAT Members, £30 + VAT Non members
Under the executive chairmanship of experience of SeaEnergy will be of
Steve Remp, Ramco Energy plc has great interest to members and
relaunched itself as SeaEnergy PLC, guests.
reflecting the board’s commitment to Steve Remp came to Scotland in
exit oil and gas investments and 1971 and in 1977 he founded Ramco.
focus purely on offshore renewables. Steve was educated in Europe and
Through its 80 per cent subsidiary the US, obtaining a BA in Economics
SeaEnergy Renewables Limited, from Claremont College in California
SeaEnergy has interests in three UK and an MA in International Economics
offshore wind farm sites, in joint from the School of Advanced
ventures with major companies such International Studies, Johns Hopkins
as SSE Renewables and EDPR. The University.
group has also signed a heads of
terms agreement to access offshore HOW TO BOOK
wind farm projects in Taiwan. Given Contact Kathy Matthew at
recent announcements about the KAMatthew@paull-williamsons.co.uk,
enormous potential for marine call 01224 621 621 or at
renewables, this insight into the www.iod.com /scotland
Incorporation of partnerships Is your business making the Innovation: Staying ahead
and businesses - are you in? ‘knowledge connection’? of the curve
Date: Wednesday, 13 October Date: Thursday, 21 October Date: Wednesday,17 November
Time: 8.15am to 9.30am Time: 6pm - 8.30pm Time: From 6pm
Venue: Davidson Chalmers, 12 Hope Street, Venue: Inspace, 1 Crichton Street, Edinburgh Venue: The Apex Hotel on Waterloo Place
Edinburgh EH2 4DB Cost: Free Cost: £35 + VAT members,
Price: FREE event £40 + VAT non-members
Partnerships with Scotland’s world-renowned
With the top rate of personal income tax set universities and research institutes can deliver In tough times like these, only companies
to rise to 50 per cent, more and more a range of business benefits, by driving new who are nimble, resourceful and above all,
partnerships and sole traders are looking to innovations, impacting on the bottom line innovative, will survive and thrive.
the merits of incorporating their business as a and helping to ensure Scottish companies are IOD Edinburgh has brought together a
limited company. Professional firms in at the top of their game and staying ahead of panel who can offer practical examples and
particular have been quick to respond to the the competition in a global marketplace. experience of how their very different
threat of higher taxes but there is no reason Interface - the knowledge connection for organisations have done this.
why the owners of other trading businesses business will host a reception at The The keynote speaker will be Jack Perry,
should not be asking themselves whether University of Edinburgh’s Inspace facility to former CEO of Scottish Enterprise. He will lay
they too could benefit from incorporation. offer IoD members an insight into the down his blueprint for successful business
This seminar will examine the tax savings possibilities open to them through and argue that innovation is not just about
that incorporation could bring, consider the partnerships with academia. new ideas, but thinking creatively about
pro’s and con’s of limited companies and look This complimentary event is an opportunity everything you do.
at the process for transferring your existing for guests to visit one of Edinburgh’s most Craig Stirling of law firm Davidson
business over to a new limited company. unique event spaces. Chalmers, will talk about an innovative new
Presenting this seminar will be Donald Representatives from Nairns, Scottish & venture between his firm and world-leading
Forsyth, partner at accountancy firm Scott Southern Energy and Shed Media will deliver Canadian company Stonecracker, while Joe
Moncrieff and Stuart Duncan/Craig Stirling, short presentations on their experiences of Lockwood will discuss an exciting link-up
partners at Davidson Chalmers, Commercial collaborative working, to be followed by between the IoD and Glasgow School of Art
Lawyers. All three have vast experience networking over wine and canapés. that aims to bridge that often tricky gap
dealing with owner-managed businesses on a between artistic innovation and the market.
range of issues, including the incorporation So if you want to stay ahead of the curve –
of business. and the competition – this is an event for you.
The event will be chaired by David Lee, former
senior assistant editor of The Scotsman, and
IoD Edinburgh networking at the Apex the event will includes drinks, canapés and
IoD Edinburgh holds an informal networking evening on the first Thursday plenty of opportunities to network.
of every month at the Apex Hotel, Waterloo Place, Edinburgh.
There’s a complimentary glass of wine for all attendees, and the chance to
chat through the latest issues of the day, business or otherwise, with To book on any one or all of these three events...
fellow IoD members. Contact IoD Scotland on 0131 557 5488 or
The emphasis is on informality, and there’s no need to book. Just turn up iod.scotland@iod.com. Alternatively, see the booking form
and enjoy! The evenings run from 6-8pm, and the next one is on October 7. included in this issue or book online at
www.iod.com/scotland
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